SYKES ENTERPRISES INC, 10-K filed on 2/26/2019
Annual Report
v3.10.0.1
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2018
Feb. 07, 2019
Jun. 30, 2018
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2018    
Document Fiscal Year Focus 2018    
Document Fiscal Period Focus FY    
Trading Symbol SYKE    
Entity Registrant Name SYKES ENTERPRISES INC    
Entity Central Index Key 0001010612    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Large Accelerated Filer    
Entity Emerging Growth Company false    
Entity Small Business false    
Entity Shell Company false    
Entity Common Stock, Shares Outstanding   42,777,546  
Entity Public Float     $ 1,185,240,552
v3.10.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 128,697 $ 343,734
Receivables, net 347,425 341,958
Prepaid expenses 23,754 22,132
Other current assets 16,761 19,743
Total current assets 516,637 727,567
Property and equipment, net 135,418 160,790
Goodwill, net 302,517 269,265
Intangibles, net 174,031 140,277
Deferred charges and other assets 43,364 29,193
Total assets 1,171,967 1,327,092
Current liabilities:    
Accounts payable 26,923 32,133
Accrued employee compensation and benefits 95,813 102,899
Income taxes payable 1,433 2,606
Deferred revenue and customer liabilities 30,176 34,717
Other accrued expenses and current liabilities 31,235 30,888
Total current liabilities 185,580 203,243
Deferred grants 2,241 3,233
Long-term debt 102,000 275,000
Long-term income tax liabilities 23,787 27,098
Other long-term liabilities 31,750 22,039
Total liabilities 345,358 530,613
Commitments and loss contingency (Note 22)
Shareholders' equity:    
Preferred stock, $0.01 par value per share, 10,000 shares authorized; no shares issued and outstanding
Common stock, $0.01 par value per share, 200,000 shares authorized; 42,778 and 42,899 shares issued, respectively 428 429
Additional paid-in capital 286,544 282,385
Retained earnings 598,788 546,843
Accumulated other comprehensive income (loss) (56,775) (31,104)
Treasury stock at cost: 126 and 117 shares, respectively (2,376) (2,074)
Total shareholders' equity 826,609 796,479
Total liabilities and shareholders' equity $ 1,171,967 $ 1,327,092
v3.10.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2018
Dec. 31, 2017
Statement Of Financial Position [Abstract]    
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 42,778,000 42,899,000
Treasury stock, shares 126,000 117,000
v3.10.0.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Statement [Abstract]      
Revenues $ 1,625,687 $ 1,586,008 $ 1,460,037
Operating expenses:      
Direct salaries and related costs 1,072,907 1,039,677 947,593
General and administrative 407,285 376,825 351,681
Depreciation, net 57,350 55,972 49,013
Amortization of intangibles 15,542 21,082 19,377
Impairment of long-lived assets 9,401 5,410  
Total operating expenses 1,562,485 1,498,966 1,367,664
Income from operations 63,202 87,042 92,373
Other income (expense):      
Interest income 706 696 607
Interest (expense) (4,743) (7,689) (5,570)
Other income (expense), net (2,248) 1,258 1,474
Total other income (expense), net (6,285) (5,735) (3,489)
Income before income taxes 56,917 81,307 88,884
Income taxes 7,991 49,091 26,494
Net income $ 48,926 $ 32,216 $ 62,390
Net income per common share:      
Basic $ 1.16 $ 0.77 $ 1.49
Diluted $ 1.16 $ 0.76 $ 1.48
Weighted average common shares outstanding:      
Basic 42,090 41,822 41,847
Diluted 42,246 42,141 42,239
v3.10.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]      
Net income $ 48,926 $ 32,216 $ 62,390
Other comprehensive income (loss), net of taxes:      
Foreign currency translation adjustments, net of taxes (21,938) 36,078 (13,792)
Unrealized gain (loss) on net investment hedges, net of taxes   (5,220) 2,096
Unrealized gain (loss) on cash flow hedging instruments, net of taxes (4,335) 4,696 (1,698)
Unrealized actuarial gain (loss) related to pension liability, net of taxes 682 449 96
Unrealized gain (loss) on postretirement obligation, net of taxes (80) (80) (67)
Other comprehensive income (loss), net of taxes (25,671) 35,923 (13,365)
Comprehensive income (loss) $ 23,255 $ 68,139 $ 49,025
v3.10.0.1
Consolidated Statements of Changes in Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
Beginning Balance at Dec. 31, 2015 $ 678,680 $ 428 $ 275,380 $ 458,325 $ (53,662) $ (1,791)
Beginning Balance, shares at Dec. 31, 2015   42,785        
Stock-based compensation expense 10,779   10,779      
Excess tax benefit from stock-based compensation 2,098   2,098      
Issuance of common stock under equity award plans, net of forfeitures   $ 4 190     (194)
Issuance of common stock under equity award plans, net of forfeitures, Share   425        
Shares repurchased for tax withholding on equity awards (4,916) $ (2) (4,914)      
Shares repurchased for tax withholding on equity awards, Share   (169)        
Repurchase of common stock (11,144)         (11,144)
Retirement of treasury stock   $ (1) (2,176) (2,104)   4,281
Retirement of treasury stock, shares   (146)        
Comprehensive income (loss) 49,025     62,390 (13,365)  
Ending Balance at Dec. 31, 2016 724,522 $ 429 281,357 518,611 (67,027) (8,848)
Ending Balance, shares at Dec. 31, 2016   42,895        
Stock-based compensation expense 7,621   7,621      
Issuance of common stock under equity award plans, net of forfeitures   $ 4 250     (254)
Issuance of common stock under equity award plans, net of forfeitures, Share   386        
Shares repurchased for tax withholding on equity awards (3,882) $ (1) (3,881)      
Shares repurchased for tax withholding on equity awards, Share   (132)        
Retirement of treasury stock   $ (3) (3,194) (3,831)   7,028
Retirement of treasury stock, shares   (250)        
Comprehensive income (loss) 68,139     32,216 35,923  
Ending Balance at Dec. 31, 2017 796,479 $ 429 282,385 546,843 (31,104) (2,074)
Ending Balance, shares at Dec. 31, 2017   42,899        
Cumulative effect of accounting change | Accounting Standards Update 2016-09 [Member] 79   232 (153)    
Stock-based compensation expense 7,543   7,543      
Issuance of common stock under equity award plans, net of forfeitures     302     (302)
Issuance of common stock under equity award plans, net of forfeitures, Share   (3)        
Shares repurchased for tax withholding on equity awards (3,687) $ (1) (3,686)      
Shares repurchased for tax withholding on equity awards, Share   (118)        
Comprehensive income (loss) 23,255     48,926 (25,671)  
Ending Balance at Dec. 31, 2018 826,609 $ 428 $ 286,544 598,788 $ (56,775) $ (2,376)
Ending Balance, shares at Dec. 31, 2018   42,778        
Cumulative effect of accounting change | Accounting Standards Update 2014-09 [Member] $ 3,019     $ 3,019    
v3.10.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities:      
Net income $ 48,926 $ 32,216 $ 62,390
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation 57,817 56,482 49,600
Amortization of intangibles 15,542 21,082 19,377
Amortization of deferred grants (657) (716) (845)
Impairment losses 9,401 5,410  
Unrealized foreign currency transaction (gains) losses, net (843) (4,671) (1,104)
Stock-based compensation expense 7,543 7,621 10,779
Deferred income tax provision (benefit) (1,509) 7,908 2,339
Net (gain) loss on disposal of property and equipment 312 474 314
Write-downs (recoveries) of value added tax receivables     (148)
Unrealized (gains) losses and premiums on financial instruments, net 805 (98) 521
Amortization of deferred loan fees 269 269 269
Imputed interest expense and fair value adjustments to contingent consideration   (529) (1,496)
Other 834 (34) (37)
Changes in assets and liabilities, net of acquisitions:      
Receivables, net (8,224) (10,154) (32,905)
Prepaid expenses (1,690) (221) (3,587)
Other current assets (693) (1,433) (3,398)
Deferred charges and other assets (13,621) (930) (1,286)
Accounts payable (1,571) 7,286 (2,938)
Income taxes receivable / payable (1,066) 1,137 4,999
Accrued employee compensation and benefits (6,418) 5,101 15,699
Other accrued expenses and current liabilities 449 (5,548) 5,090
Deferred revenue and customer liabilities (1,623) (5,866) 6,343
Other long-term liabilities 5,111 20,003 2,850
Net cash provided by operating activities 109,094 134,789 132,826
Cash flows from investing activities:      
Capital expenditures (46,884) (63,344) (78,342)
Cash paid for business acquisitions, net of cash acquired (78,395) (9,075) (205,324)
Net investment hedge settlement   (5,122) 10,339
Purchase of intangible assets (8,156) (4,825) (10)
Investment in equity method investees (5,000) (5,012)  
Other 1,495 101 582
Net cash (used for) investing activities (136,940) (87,277) (272,755)
Cash flows from financing activities:      
Payments of long-term debt (231,000)   (19,000)
Proceeds from issuance of long-term debt 58,000 8,000 216,000
Cash paid for repurchase of common stock     (11,144)
Proceeds from grants 31 163 202
Shares repurchased for tax withholding on equity awards (3,687) (3,882) (4,916)
Payments of contingent consideration related to acquisitions   (5,760) (1,396)
Net cash provided by (used for) financing activities (176,656) (1,479) 179,746
Effects of exchange rates on cash, cash equivalents and restricted cash (10,072) 31,178 (8,468)
Net increase (decrease) in cash, cash equivalents and restricted cash (214,574) 77,211 31,349
Cash, cash equivalents and restricted cash – beginning 344,805 267,594 236,245
Cash, cash equivalents and restricted cash – ending 130,231 344,805 267,594
Supplemental disclosures of cash flow information:      
Cash paid during period for interest 3,888 6,680 4,003
Cash paid during period for income taxes 19,587 24,342 18,764
Non-cash transactions:      
Property and equipment additions in accounts payable 1,944 6,056 10,692
Unrealized gain (loss) on postretirement obligation in accumulated other comprehensive income (loss) $ (80) $ (80) $ (67)
v3.10.0.1
Overview and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Overview and Summary of Significant Accounting Policies

Note 1. Overview and Summary of Significant Accounting Policies

Business Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) is a leading provider of multichannel demand generation and global customer engagement services.  SYKES provides differentiated full lifecycle customer engagement solutions and services primarily to Global 2000 companies and their end customers principally within the financial services, communications, technology, transportation & leisure, healthcare and other industries. SYKES primarily provides customer engagement solutions and services with an emphasis on inbound multichannel demand generation, customer service and technical support to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. SYKES also provides various enterprise support services in the United States that include services for its clients’ internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services, which include order processing, payment processing, inventory control, product delivery and product returns handling. Additionally, through the Company’s acquisition of robotic processing automation (“RPA”) provider Symphony Ventures Ltd (“Symphony”) coupled with our investment in artificial intelligence (“AI”) through XSell Technologies, Inc. (“XSell”), the Company also provides a suite of solutions such as consulting, implementation, hosting and managed services that optimizes its differentiated full lifecycle management services platform. The Company has operations in two reportable segments entitled (1) the Americas, in which the client base is primarily companies in the United States that are using the Company’s services to support their customer management needs, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim; and (2) EMEA, which includes Europe, the Middle East and Africa.

U.S. 2017 Tax Reform Act

On December 20, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Reform Act”) was approved by Congress and received presidential approval on December 22, 2017. In general, the 2017 Tax Reform Act reduced the United States (“U.S.”) corporate income tax rate from 35% to 21%, effective in 2018. The 2017 Tax Reform Act moved from a worldwide business taxation approach to a participation exemption regime. The 2017 Tax Reform Act also imposed base-erosion prevention measures on non-U.S. earnings of U.S. entities, as well as a one-time mandatory deemed repatriation tax on accumulated non-U.S. earnings. The impact of the 2017 Tax Reform Act on the consolidated financial results began with the fourth quarter of 2017, the period of enactment. This impact, along with the transitional taxes discussed in Note 20, Income Taxes, is reflected in the Other segment.

Acquisitions

On November 1, 2018, the Company completed the acquisition of Symphony, pursuant to a definitive Share Purchase Agreement (the “Symphony Purchase Agreement”) entered into on October 18, 2018 (the “Symphony acquisition”). The Company has reflected Symphony’s results in its consolidated financial statements in the EMEA segment since November 1, 2018.  

On July 9, 2018, the Company completed the acquisition of WhistleOut Pty Ltd and WhistleOut Inc. (together, “WhistleOut”), pursuant to a definitive Share Sale Agreement (the “WhistleOut Sale Agreement”).  The Company has reflected WhistleOut’s results in its consolidated financial statements in the Americas segment since July 9, 2018.  

In May 2017, the Company completed the acquisition of certain assets of a Global 2000 telecommunications services provider, pursuant to a definitive Asset Purchase Agreement (the “Telecommunications Asset Acquisition Purchase Agreement”) entered into on April 24, 2017 (the “Telecommunications Asset acquisition”).  The Company has reflected the Telecommunications Asset acquisition’s results in its consolidated financial statements in the Americas segment since May 31, 2017.  

In April 2016, the Company completed the acquisition of Clear Link Holdings, LLC (“Clearlink”), pursuant to a definitive Agreement and Plan of Merger (the “Merger Agreement”), dated March 6, 2016. The Company has reflected Clearlink’s results in its consolidated financial statements in the Americas segment since April 1, 2016.

The Company’s acquisitions during 2017 and 2018 were immaterial to the Company individually and in the aggregate.  See Note 3, Acquisitions, for additional information.  

Principles of Consolidation The consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. Investments in less than majority-owned subsidiaries in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. All intercompany transactions and balances have been eliminated in consolidation.  

Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”)  requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Subsequent Events — Subsequent events or transactions have been evaluated through the date and time of issuance of the consolidated financial statements. On February 14, 2019, the Company entered into a new credit agreement.  See Note 18, Borrowings, for further information. There were no other material subsequent events that required recognition or disclosure in the accompanying consolidated financial statements.

Cash, Cash Equivalents and Restricted cash — Cash and cash equivalents consist of cash and highly liquid short-term investments, primarily held in non-interest-bearing investments which have original maturities of less than 90 days. Cash in the amount of $128.7 million and $343.7 million at December 31, 2018 and 2017, respectively, was primarily held in non-interest bearing accounts. Cash and cash equivalents of $115.7 million and $335.1 million at December 31, 2018 and 2017, respectively, were held in international operations. Most of these funds will not be subject to additional taxes if repatriated to the United States. There are circumstances where the Company may be unable to repatriate some of the cash and cash equivalents held by its international operations due to country restrictions.

Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations.  

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statements of Cash Flows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

 

2016

 

 

2015

 

Cash and cash equivalents

$

128,697

 

 

$

343,734

 

 

$

266,675

 

 

$

235,358

 

Restricted cash included in "Other current assets"

 

149

 

 

 

154

 

 

 

160

 

 

 

207

 

Restricted cash included in "Deferred charges and

   other assets"

 

1,385

 

 

 

917

 

 

 

759

 

 

 

680

 

 

$

130,231

 

 

$

344,805

 

 

$

267,594

 

 

$

236,245

 

Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts on trade account receivables for estimated losses arising from the inability of its customers to make required payments. The Company’s estimate is based on qualitative and quantitative analyses, including credit risk measurement tools and methodologies using publicly available credit and capital market information, a review of the current status of the Company’s trade accounts receivable and the historical collection experience of the Company’s clients. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change if the financial condition of the Company’s customers were to deteriorate, resulting in a reduced ability to make payments.

Property and Equipment Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets. Improvements to leased premises are amortized over the shorter of the related lease term or the estimated useful lives of the improvements. Cost and related accumulated depreciation on assets retired or disposed of are removed from the accounts and any resulting gains or losses are credited or charged to income. The Company capitalizes certain costs incurred, if any, to internally develop software upon the establishment of technological feasibility. Costs incurred prior to the establishment of technological feasibility are expensed as incurred.  

The carrying value of property and equipment to be held and used is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, Property, Plant and Equipment. For purposes of recognition and measurement of an impairment loss, assets are grouped at the lowest levels for which there are identifiable cash flows (the “asset group”).  An asset is considered to be impaired when the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition does not exceed its carrying amount. The amount of the impairment loss, if any, is measured as the amount by which the carrying value of the asset exceeds its estimated fair value, which is generally determined based on appraisals or sales prices of comparable assets or independent third party offers. Occasionally, the Company redeploys property and equipment from under-utilized centers to other locations to improve capacity utilization if it is determined that the related undiscounted future cash flows in the under-utilized centers would not be sufficient to recover the carrying amount of these assets. Other than what has been disclosed in Note 5, Fair Value, the Company determined that its property and equipment was not impaired as of December 31, 2018 and 2017.

Rent Expense The Company has entered into operating lease agreements, some of which contain provisions for future rent increases, rent free periods, or periods in which rent payments are reduced. The total amount of the rental payments due over the lease term is being charged to rent expense on the straight-line method over the term of the lease in accordance with ASC 840, Leases.

Goodwill The Company accounts for goodwill and other intangible assets under ASC 350, Intangibles — Goodwill and Other (“ASC 350”). The Company expects to receive future benefits from previously acquired goodwill over an indefinite period of time.  For goodwill and other intangible assets with indefinite lives not subject to amortization, the Company reviews goodwill and intangible assets for impairment at least annually in the third quarter, and more frequently in the presence of certain circumstances. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company may elect to forgo this option and proceed to the quantitative goodwill impairment test.  If the Company elects to perform the qualitative assessment and it indicates that a significant decline to fair value of a reporting unit is more likely than not, or if a reporting unit’s fair value has historically been closer to its carrying value, or the Company elects to forgo this qualitative assessment, the Company will proceed to the quantitative goodwill impairment test where the fair value of a reporting unit is calculated based on discounted future probability-weighted cash flows. If the quantitative goodwill impairment test indicates that the carrying value of a reporting unit is in excess of its fair value, the Company will recognize an impairment loss for the amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit.

Intangible Assets — Definite-lived intangible assets, primarily customer relationships, are amortized using the straight-line method over their estimated useful lives which approximate the pattern in which the economic benefits of the assets are consumed. The Company periodically evaluates the recoverability of intangible assets and takes into account events or changes in circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. Fair value for intangible assets is based on discounted cash flows, market multiples and/or appraised values, as appropriate.

Income Taxes The Company accounts for income taxes under ASC 740, Income Taxes (“ASC 740”) which requires recognition of deferred tax assets and liabilities to reflect tax consequences of differences between the tax bases of assets and liabilities and their reported amounts in the accompanying consolidated financial statements. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, both positive and negative, for each respective tax jurisdiction, it is more likely than not that the deferred tax assets will not be realized in accordance with the criteria of ASC 740. Valuation allowances are established against deferred tax assets due to an uncertainty of realization. Valuation allowances are reviewed each period on a tax jurisdiction by tax jurisdiction basis to analyze whether there is sufficient positive or negative evidence, in accordance with criteria of ASC 740, to support a change in judgment about the ability to realize the related deferred tax assets. Uncertainties regarding expected future income in certain jurisdictions could affect the realization of deferred tax assets in those jurisdictions.  

The Company evaluates tax positions that have been taken or are expected to be taken in its tax returns and records a liability for uncertain tax positions in accordance with ASC 740. ASC 740 contains a two-step approach to recognizing and measuring uncertain tax positions. First, tax positions are recognized if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon examination, including resolution of related appeals or litigation processes, if any. Second, the tax position is measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes in the accompanying consolidated financial statements.

Self-Insurance Programs The Company self-insures for certain levels of workers' compensation and self-funds the medical, prescription drug and dental benefit plans in the United States.  Estimated costs are accrued at the projected settlements for known and anticipated claims. Amounts related to these self-insurance programs are included in “Accrued employee compensation and benefits” and “Other long-term liabilities” in the accompanying Consolidated Balance Sheets.

Deferred Grants Recognition of income associated with grants for land and the acquisition of property, buildings and equipment (together, “property grants”) is deferred until after the completion and occupancy of the building and title has passed to the Company, and the funds have been released from escrow. The deferred amounts for both land and building are amortized and recognized as a reduction of depreciation expense over the corresponding useful lives of the related assets. Amounts received in excess of the cost of the building are allocated to the cost of equipment and, only after the grants are released from escrow, recognized as a reduction of depreciation expense over the weighted average useful life of the related equipment, which approximates five years. Upon sale of the related facilities, any deferred grant balance is recognized in full and is included in the gain on sale of property and equipment.

The Company receives government employment grants as an incentive to create and maintain permanent employment positions for a specified time period. These grants are repayable, under certain terms and conditions, if the Company's relevant employment levels do not meet or exceed the employment levels set forth in the grant agreements. Accordingly, grant monies received are deferred and amortized primarily as a reduction to “Direct salaries and related costs” using the proportionate performance model over the required employment period.  

The Company receives government lease grants as an incentive for leasing space at specific locations or locating engagement centers in a government’s jurisdiction. These grants are repayable under certain terms and conditions, as set forth in the grant agreements. Accordingly, grant monies received are deferred and amortized primarily as a reduction to rent expense included in “General and administrative” over the required lease period.  

Investments in Equity Method Investees — The Company uses the equity method to account for investments in companies if the investment provides the ability to exercise significant influence, but not control, over operating and financial policies of the investee. The Company’s proportionate share of the net income or loss of an equity method investment is included in consolidated net income. Judgment regarding the level of influence over an equity method investment includes considering key factors such as the Company’s ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions.

The Company evaluates an equity method investment for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. Factors considered by the Company when reviewing an equity method investment for impairment include the length of time (duration) and the extent (severity) to which the fair value of the equity method investment has been less than cost, the investee’s financial condition and near-term prospects, and the intent and ability to hold the investment for a period of time sufficient to allow for anticipated recovery. An impairment that is other-than-temporary is recognized in the period identified.  As of December 31, 2018 and 2017, the Company did not identify any instances where the carrying values of its equity method investments were not recoverable.

In July 2017, the Company made a strategic investment of $10.0 million in XSell for 32.8% of XSell’s preferred stock. The Company is incorporating XSell’s machine learning and AI algorithms into its business. The Company believes this will increase the sales performance of its agents to drive revenue for its clients, improve the experience of the Company’s clients’ end customers and enhance brand loyalty, reduce the cost of customer care and leverage analytics and machine learning to source the best agents and improve their performance.

The Company’s net investment in XSell of $9.2 million and $9.8 million was included in “Deferred charges and other assets” in the accompanying Consolidated Balance Sheets as of December 31, 2018 and 2017, respectively.  The Company’s investment was paid in two installments of $5.0 million, one in July 2017 and one in August 2018. The Company’s proportionate share of XSell’s income (loss) of $(0.7) million and $(0.1) million was included in “Other income (expense), net” in the accompanying Consolidated Statements of Operations for the years ended December 31, 2018 and 2017, respectively.  

Customer-Acquisition Advertising Costs — The Company’s advertising costs are expensed as incurred. Total advertising costs included in the accompanying Consolidated Statements of Operations were as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Customer-acquisition advertising costs included

   in "Direct salaries and related costs"

$

49,657

 

 

$

36,659

 

 

$

28,116

 

Customer-acquisition advertising costs included

   in "General and administrative"

 

60

 

 

 

115

 

 

 

 

 

Stock-Based Compensation — The Company has three stock-based compensation plans: the 2011 Equity Incentive Plan (for employees and certain non-employees), approved by the Company’s shareholders, the Non-Employee Director Fee Plan (for non-employee directors) and the Deferred Compensation Plan (for certain eligible employees). All of these plans are discussed more fully in Note 24, Stock-Based Compensation. Stock-based awards under these plans may consist of common stock, stock options, cash-settled or stock-settled stock appreciation rights, restricted stock and other stock-based awards. The Company issues common stock and uses treasury stock to satisfy stock option exercises or vesting of stock awards.

In accordance with ASC 718, Compensation — Stock Compensation (“ASC 718”), the Company recognizes in its accompanying Consolidated Statements of Operations the grant-date fair value of stock options and other equity-based compensation issued to employees and directors. Compensation expense for equity-based awards is recognized over the requisite service period, usually the vesting period, while compensation expense for liability-based awards (those usually settled in cash rather than stock) is re-measured to fair value at each balance sheet date until the awards are settled.  

Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

 

Cash, short-term and other investments, investments held in rabbi trust and accounts payable The carrying values for cash, short-term and other investments, investments held in rabbi trust and accounts payable approximate their fair values.

 

Foreign currency forward contracts and options Foreign currency forward contracts and options, including premiums paid on options, are recognized at fair value based on quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk.

 

Embedded derivatives — Embedded derivatives within certain hybrid lease agreements are bifurcated from the host contract and recognized at fair value based on pricing models or formulas using significant unobservable inputs, including adjustments for credit risk.

 

Long-term debt The carrying value of long-term debt approximates its estimated fair value as the debt bears interest based on variable market rates, as outlined in the debt agreement.

 

Contingent consideration Contingent consideration is recognized at fair value based on the discounted cash flow method.

Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements. ASC 820-10-20 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

ASC 825, Financial Instruments (“ASC 825”) permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to use the fair value option permitted under ASC 825 for any of its financial assets and financial liabilities that are not already recorded at fair value.

A description of the Company’s policies regarding fair value measurement is summarized below.

Fair Value Hierarchy ASC 820-10-35 requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy:

 

Level 1 Quoted prices for identical instruments in active markets.

 

Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

 

Level 3 Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Determination of Fair Value The Company generally uses quoted market prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access to determine fair value and classifies such items in Level 1. Fair values determined by Level 2 inputs utilize inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, and inputs other than quoted market prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, currency rates, etc. Assets or liabilities valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable.

The following section describes the valuation methodologies used by the Company to measure assets and liabilities at fair value on a recurring basis, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified.

Money Market and Open-End Mutual Funds The Company uses quoted market prices in active markets to determine the fair value.  These items are classified in Level 1 of the fair value hierarchy.

Foreign Currency Forward Contracts and Options The Company enters into foreign currency forward contracts and options over-the-counter and values such contracts using quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk. The key inputs include forward or option foreign currency exchange rates and interest rates. These items are classified in Level 2 of the fair value hierarchy.

Embedded Derivatives The Company uses significant unobservable inputs to determine the fair value of embedded derivatives, which are classified in Level 3 of the fair value hierarchy.  These unobservable inputs include expected cash flows associated with the lease, currency exchange rates on the day of commencement, as well as forward currency exchange rates; results of which are adjusted for credit risk. These items are classified in Level 3 of the fair value hierarchy. See Note 11, Financial Derivatives, for further information.

Investments Held in Rabbi Trust The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 12, Investments Held in Rabbi Trust, and Note 24, Stock-Based Compensation.

Contingent Consideration The Company uses significant unobservable inputs to determine the fair value of contingent consideration, which is classified in Level 3 of the fair value hierarchy.  The contingent consideration recorded related to the Qelp B.V. (“Qelp”) acquisition and liabilities assumed as part of the Clearlink acquisition was recognized at fair value using a discounted cash flow methodology and a discount rate of approximately 14.0% and 10.0%, respectively. The discount rates vary dependent on the specific risks of each acquisition including the country of operation, the nature of services and complexity of the acquired business, and other similar factors, all of which are significant inputs not observable in the market.  Significant increases or decreases in any of the inputs in isolation would result in a significantly higher or lower fair value measurement.

Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is other than the U.S. Dollar, are translated at the exchange rates in effect on the balance sheet date, and income and expenses are translated at the weighted average exchange rate during the period. The net effect of translation gains and losses is not included in determining net income, but is included in “Accumulated other comprehensive income (loss)” (“AOCI”), which is reflected as a separate component of shareholders’ equity until the sale or until the complete or substantially complete liquidation of the net investment in the foreign subsidiary. Foreign currency transactional gains and losses are included in “Other income (expense), net” in the accompanying Consolidated Statements of Operations.

Foreign Currency and Derivative Instruments The Company accounts for financial derivative instruments under ASC 815, Derivatives and Hedging (“ASC 815”). The Company generally utilizes non-deliverable forward contracts and options expiring within one to 24 months to reduce its foreign currency exposure due to exchange rate fluctuations on forecasted cash flows denominated in non-functional foreign currencies and net investments in foreign operations. In using derivative financial instruments to hedge exposures to changes in exchange rates, the Company exposes itself to counterparty credit risk.

The Company designates derivatives as either (1) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge); (2) a hedge of a net investment in a foreign operation; or (3) a derivative that does not qualify for hedge accounting.  To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship. Even if a derivative qualifies for hedge accounting treatment, there may be an element of ineffectiveness of the hedge.

Changes in the fair value of derivatives that are highly effective and designated as cash flow hedges are recorded in AOCI, until the forecasted underlying transactions occur. Any realized gains or losses resulting from the cash flow hedges are recognized together with the hedged transaction within “Revenues”. Changes in the fair value of derivatives that are highly effective and designated as a net investment hedge are recorded in cumulative translation adjustment in AOCI, offsetting the change in cumulative translation adjustment attributable to the hedged portion of the Company’s net investment in the foreign operation.  Any realized gains and losses from settlements of the net investment hedge remain in AOCI until partial or complete liquidation of the net investment. Ineffectiveness is measured based on the change in fair value of the forward contracts and options and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. Hedge ineffectiveness is recognized within “Revenues” for cash flow hedges and within “Other income (expense), net” for net investment hedges. Cash flows from the derivative contracts are classified within the operating section in the accompanying Consolidated Statements of Cash Flows.

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedging activities. This process includes linking all derivatives that are designated as cash flow hedges to forecasted transactions. Hedges of a net investment in a foreign operation are linked to the specific foreign operation.  The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective on a prospective and retrospective basis. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge or if a forecasted hedge is no longer probable of occurring, or if the Company de-designates a derivative as a hedge, the Company discontinues hedge accounting prospectively. At December 31, 2018 and 2017, all hedges were determined to be highly effective.

The Company also periodically enters into forward contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to reduce the effects from fluctuations caused by volatility in currency exchange rates on the Company’s operating results and cash flows. Changes in the fair value of the derivative instruments are included in “Revenues” or “Other income (expense), net”, depending on the underlying risk exposure.  See Note 11, Financial Derivatives, for further information on financial derivative instruments.

Reclassifications — Certain balances in prior years have been reclassified to conform to current year presentation.  

New Accounting Standards Not Yet Adopted

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”) and subsequent amendments (together, “ASC 842”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840, Leases. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted.  Entities have the option to either apply the amendments (1) at the beginning of the earliest period presented using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements or (2) at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without the need to restate prior periods. There are also certain optional practical expedients that an entity may elect to apply.

The Company’s implementation team has compiled a detailed inventory of leases, performed a preliminary analysis of the impact to the financial statements, and implemented a lease accounting software solution to assist in complying with ASC 842. Additionally, the implementation team is evaluating the impact of ASC 842 on the Company’s business processes, systems and internal controls, and has begun the process of instituting changes where needed.

The Company elected to use the package of practical expedients that allows it to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company additionally elected to use the practical expedients that allows lessees to treat the lease and non-lease components of leases as a single lease component as well as the short-term lease recognition exemption for certain of the Company’s asset classes. The Company will adopt this guidance at the adoption date of January 1, 2019, using the transition method that allows it to initially apply ASC 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company does not expect to recognize a material adjustment to retained earnings upon adoption.

The adoption of ASC 842 will have a material impact on the Company’s Consolidated Balance Sheet due to the recognition of the right-of-use (“ROU”) assets and lease liabilities. The Company believes that the majority of its leases will maintain their current lease classification under ASC 842. The adoption of ASC 842 is not expected to have a material impact on the Company’s Consolidated Statement of Operations or Consolidated Statement of Cash Flows. Because of the transition method the Company has elected, ASC 842 will not be applied to periods prior to adoption and, therefore, will have no impact on the Company’s previously reported results. The future undiscounted minimum lease payments for the Company’s operating leases of $253.3 million as of December 31, 2018 are discussed in Note 22, Commitments and Loss Contingency. Upon adoption of ASC 842, the Company expects to recognize operating lease ROU assets in the range of $212.0 million to $217.0 million and lease liabilities in the range of $225.0 million to $230.0 million, which generally reflects the present value of these future payments. After the adoption of ASC 842, the Company will first report the ROU assets and lease liabilities as of March 31, 2019 based on its lease portfolio as of that date.

Fair Value Measurements

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). These amendments remove, modify or add certain disclosure requirements for fair value measurements.  These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Certain of the amendments will be applied prospectively in the initial year of adoption while the remainder are required to be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. The Company is evaluating the timing of its adoption of ASU 2018-13 but does not expect a material impact on its disclosures.

Retirement Benefits

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans - General (Subtopic 715-20) – Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). These amendments remove, modify or add certain disclosure requirements for defined benefit plans.  These amendments are effective for fiscal years ending after December 15, 2020, with early adoption permitted.  The Company is evaluating the timing of its adoption of ASU 2018-14 but does not expect a material impact on its disclosures.

Cloud Computing

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update.  The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.  The Company is evaluating the timing of its adoption of ASU 2018-15 but does not expect a material impact on its financial condition, results of operations, cash flows and disclosures.

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedge Activities (“ASU 2017-12”). These amendments help simplify certain aspects of hedge accounting and better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results.  For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively.  These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update.  The Company does not expect the adoption of ASU 2017-12 to materially impact its financial condition, results of operations, cash flows and disclosures.

Financial Instruments – Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). These amendments require measurement and recognition of expected versus incurred credit losses for financial assets held. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2018-19”). These amendments clarify that receivables arising from operating leases are accounted for using the lease guidance in ASC 842 and not as financial instruments. These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company expects ASU 2016-13 to apply to its trade receivables but does not expect the adoption of the amendments to have a material impact on its financial condition, results of operations or cash flows because credit losses associated from trade receivables have historically been insignificant. Additionally, the Company does not anticipate early adopting ASU 2016-13.

New Accounting Standards Recently Adopted

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) and subsequent amendments (together, “ASC 606”). ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and indicates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  To achieve this, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation.  The Company adopted ASC 606 as of January 1, 2018 using the modified retrospective transition method.

See Note 2, Revenues, for further details as well as the Company’s significant accounting policy for the Recognition of Revenues.

Financial Instruments

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). These amendments modify how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception applies to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such, these investments may be measured at cost. These amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). These amendments clarify the presentation of cash receipts and payments in eight specific situations.  These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments have been applied using a retrospective transition method to each period presented. The adoption of ASU 2016-15 on January 1, 2018 did not have a material impact on the Company’s cash flows.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cash (A Consensus of the FASB Emerging Issues Task Force (“ASU 2016-18”). These amendments clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, requiring entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents.  These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments have been applied using a retrospective transition method to each period presented. The inclusion of restricted cash increased the beginning balance of cash in the Consolidated Statements of Cash Flows by $1.1 million for the year ended December 31, 2018, increased the beginning and ending balance of cash by $0.9 million and $1.1 million, respectively, for the year ended December 31, 2017 and increased the beginning and ending balances of cash by $0.9 million and $0.9 million, respectively, for the year ended December 31, 2016. Other than the change in presentation within the accompanying Consolidated Statements of Cash Flows, the retrospective adoption of ASU 2016-18 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Income Taxes

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”). These amendments require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs.  These amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods.  The adoption of ASU 2016-16 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements and no cumulative-effect adjustment to retained earnings was required.

In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income ("GILTI") provisions of the 2017 Tax Reform Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period costs are both acceptable methods subject to an accounting policy election. The Company evaluated the accounting treatment options related to the GILTI provisions and elected to treat any potential GILTI inclusions as a current period cost.  The election did not have a material impact on the Company’s consolidated financial statements.

In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). These amendments add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”). SAB 118, issued in December 2017, directs taxpayers to consider the implications of the 2017 Tax Reform Act as provisional when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. As described in Note 20, Income Taxes, and in accordance with SAB 118, the Company recorded amounts that were considered provisional as of December 31, 2017 and finalized the calculations in December 2018.

Other Comprehensive Income

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) (“ASU 2018-02”). These amendments allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Reform Act. These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendment in this update is permitted, including adoption in any interim period. These amendments can be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate tax rate in the 2017 Tax Reform Act is recognized. The early adoption of ASU 2018-02 on June 30, 2018 had no impact on the Company’s consolidated financial statements or disclosures.

Business Combinations

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business (“ASU 2017-01”). These amendments clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. These amendments were applied prospectively.  The adoption of ASU 2017-01 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Retirement Benefits

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). These amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period.  The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component outside of a subtotal of income from operations.  If a separate line item is not used, the line items used in the income statement to present other components of net benefit cost must be disclosed.  These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods.  These amendments were applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets.  The amendments allow a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements.

The Company adopted the income statement presentation aspects of ASU 2017-07 on a retrospective basis effective January 1, 2018. The following is a reconciliation of the effect of the reclassification of the interest cost and amortization of actuarial gain (loss) from operating expenses to other income (expense) in the Company’s Consolidated Statements of Operations for the years ended December 31, 2017 and 2016 (in thousands):

 

 

As Previously

Reported

 

 

Adjustments

Due to the

Adoption of

ASU 2017-07

 

 

As Revised

 

Year Ended December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

Direct salaries and related costs

$

1,039,790

 

 

$

(113

)

 

$

1,039,677

 

General and administrative

 

376,863

 

 

 

(38

)

 

 

376,825

 

Income from operations

 

86,891

 

 

 

151

 

 

 

87,042

 

Other income (expense), net

 

(5,584

)

 

 

(151

)

 

 

(5,735

)

Year Ended December 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

Direct salaries and related costs

$

947,677

 

 

$

(84

)

 

$

947,593

 

General and administrative

 

351,722

 

 

 

(41

)

 

 

351,681

 

Income from operations

 

92,248

 

 

 

125

 

 

 

92,373

 

Other income (expense), net

 

(3,364

)

 

 

(125

)

 

 

(3,489

)

 

v3.10.0.1
Revenues
12 Months Ended
Dec. 31, 2018
Revenue From Contract With Customer [Abstract]  
Revenues

Note 2. Revenues

Adoption of ASC 606, Revenue from Contracts with Customers

On January 1, 2018, the Company adopted ASC 606, which includes ASU 2014-09 and all related amendments, using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting for revenues under ASC 605, Revenue Recognition (“ASC 605”).

The Company recorded an increase to opening retained earnings of $3.0 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606.  The impact, all in the Americas segment, primarily related to the change in the timing of revenue recognition associated with certain customer contracts that provide fees upon renewal, as well as changes in estimating variable consideration with respect to penalty and holdback provisions for failure to meet specified minimum service levels and other performance-based contingencies.  Revenues recognized under ASC 606 were higher during 2018 than revenues would have been under ASC 605. This is primarily attributable to the change in the timing of revenue recognition, as discussed above. The impact on revenues recognized for the year ended December 31, 2018 is reported below.

The cumulative effect of the adjustments made to the Company’s Consolidated Balance Sheet as of December 31, 2017 for the line items impacted by the adoption of ASC 606 was as follows (in thousands):

 

 

December 31, 2017

 

 

Adjustments

Due to the

Adoption of

ASC 606

 

 

January 1, 2018

 

Receivables, net

$

341,958

 

 

$

825

 

 

$

342,783

 

Deferred charges and other assets

 

29,193

 

 

 

2,045

 

 

 

31,238

 

Income taxes payable

 

2,606

 

 

 

697

 

 

 

3,303

 

Deferred revenue and customer liabilities

 

34,717

 

 

 

(1,048

)

 

 

33,669

 

Other long-term liabilities

 

22,039

 

 

 

202

 

 

 

22,241

 

Retained earnings

 

546,843

 

 

 

3,019

 

 

 

549,862

 

 

The financial statement line items impacted by the adoption of ASC 606 in the Company’s Consolidated Balance Sheet as of December 31, 2018, including the impact of acquisitions, were as follows (in thousands):

 

 

As Reported

 

 

Balances

Without the

Impact of

the ASC 606

Adoption

 

 

Effect of

Adoption

Increase

(Decrease)

 

Receivables, net

$

347,425

 

 

$

344,975

 

 

$

2,450

 

Other current assets

 

16,761

 

 

 

16,648

 

 

 

113

 

Deferred charges and other assets

 

43,364

 

 

 

27,398

 

 

 

15,966

 

Income taxes payable

 

1,433

 

 

 

(2,088

)

 

 

3,521

 

Deferred revenue and customer liabilities

 

30,176

 

 

 

32,609

 

 

 

(2,433

)

Other accrued expenses and current liabilities

 

31,235

 

 

 

31,100

 

 

 

135

 

Other long-term liabilities

 

31,750

 

 

 

28,021

 

 

 

3,729

 

Retained earnings

 

598,788

 

 

 

585,211

 

 

 

13,577

 

 

The financial statement line items impacted by the adoption of ASC 606 in the Company’s Consolidated Statement of Operations for the year ended December 31, 2018, including the impact of acquisitions, were as follows, along with the impact per share (in thousands, except per share data):

 

 

As Reported

 

 

Balances

Without the

Impact of

the ASC 606

Adoption

 

 

Effect of

Adoption

Increase

(Decrease)

 

Revenues

$

1,625,687

 

 

$

1,608,731

 

 

$

16,956

 

Direct salaries and related costs

 

1,072,907

 

 

 

1,069,667

 

 

 

3,240

 

Income from operations

 

63,202

 

 

 

49,486

 

 

 

13,716

 

Income before income taxes

 

56,917

 

 

 

43,201

 

 

 

13,716

 

Income taxes

 

7,991

 

 

 

4,833

 

 

 

3,158

 

Net income

 

48,926

 

 

 

38,368

 

 

 

10,558

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

1.16

 

 

$

0.91

 

 

$

0.25

 

Diluted

$

1.16

 

 

$

0.91

 

 

$

0.25

 

 

The Company’s net cash provided by operating activities for the year ended December 31, 2018 did not change due to the adoption of ASC 606.

Practical Expedients

The Company utilized the practical expedient that allows for the application of ASC 606 to a portfolio of contracts (or performance obligations) with similar characteristics if the entity reasonably expects that the effects on the financial statements of applying this guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio.

Costs of Obtaining Customer Contracts

ASC 606 requires an entity to recognize as an asset the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs.  The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (e.g., a sales commission).  Because the Company’s sales commissions are not directly incremental to obtaining customer contracts, they are expensed as incurred.

Recognition of Revenues Accounting Policy

The Company recognizes revenues in accordance with ASC 606, whereby revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services.

Customer Engagement Solutions and Services

Under ASC 606, the Company accounts for a contract with a client when it has approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection.  The Company’s customer engagement solutions and services are classified as stand-ready performance obligations.  Because the Company’s customers simultaneously receive and consume the benefits of its services as they are delivered, the performance obligations are satisfied over time. The Company recognizes revenues over time using output methods such as a per minute, per hour, per call, per transaction or per time and materials basis.  These output methods faithfully depict the satisfaction of the Company’s obligation to deliver the services as requested and represent a direct measurement of value to the customer. The Company’s contracts have a single performance obligation as the promise to transfer the customer solutions and services are not separately identifiable from other promises in the contract, and therefore not distinct.  

The stated term of the Company’s contracts with customers range from 30 days to six years.  The majority of these contracts include termination for convenience or without cause provisions allowing either party to cancel the contract without substantial cost or penalty within a defined notification period (“termination rights”). The periods vary typically up to 180 days.  Because of the termination rights, only the noncancelable portion qualifies as a legally enforceable contract under Step 1, Identify the Contract with a Customer, of ASC 606 (“Step 1”) and is accounted for as such, even if the customer is unlikely to exercise its termination right.  Furthermore, the amounts excluded from assessment under Step 1 are, in effect, optional customer purchases of additional services.  

If the termination right is only provided to the customer, the unsatisfied performance obligations will be evaluated as a customer option.  The Company typically does not include options in customer contracts that would result in a material right.  If options to purchase additional services or options to renew are included in customer contracts, the Company evaluates the option in order to determine if the arrangement includes promises that may represent a material right and needs to be accounted for as a performance obligation in the contract with the customer.

The Company’s primary billing terms are that payment is due within 30 or 60 days of the invoice date.  Invoices are generally issued on a monthly basis as control transfers and/or as services are rendered.  Revenue recognition is limited to the established transaction price, the amount to which the Company expects to be entitled to under the contract, including the amount of expected fees for those contracts with renewal provisions, and the amount that is not contingent upon delivery of any future product or service or meeting other specified performance obligations.  The transaction price, once determined, is allocated to the single performance obligation on a contract by contract basis.

The Company’s customer contracts include penalty and holdback provisions for failure to meet specified minimum service levels and other performance-based contingencies, as well as the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred.  Certain customers also receive cash discounts for early payment. These provisions are accounted for as variable consideration and are estimated using the expected value method based on historical service and pricing trends, the individual contract provisions, and the Company’s best judgment at the time.  None of these variable consideration components are subject to constraint due to the short time period to resolution, the Company’s extensive history with similar transactions, and the limited number of possible outcomes and third-party influence. The portion of the consideration received under the contract that the Company expects to ultimately refund to the customer is excluded from the transaction price and is recorded as a refund liability.

Other Revenues

The Company offers RPA services, including RPA consulting, implementation, hosting and managed services for front, middle and back-office processes, in Europe and the U.S. Revenues are primarily recognized over time using output methods such as per time and materials basis.

The Company offers fulfillment services that are integrated with its customer care and technical support services, primarily to clients operating in Europe. The Company’s fulfillment solutions include order processing, payment processing, inventory control, product delivery and product returns handling. Revenues are recognized upon shipment to the customer and satisfaction of all obligations.

The Company provides a range of enterprise support services including technical staffing services and outsourced corporate help desk services, primarily in the U.S.  Revenues are recognized over time using output methods such as number of positions filled.

The Company also has miscellaneous other revenues in the Other segment.

In total, other revenues are immaterial, representing 1.0%, 0.6% and 0.8% of the Company’s consolidated total revenues for the years ended December 31, 2018, 2017 and 2016, respectively.

Disaggregated Revenues

The Company disaggregates its revenues from contracts with customers by service type and geographic location (see Note 25, Segments and Geographic Information), for each of its reportable segments, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by economic factors.

The following table represents revenues from contracts with customers disaggregated by service type and by the reportable segment for each category (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

$

1,329,614

 

 

$

1,324,534

 

 

$

1,219,824

 

Other revenues

 

1,024

 

 

 

1,109

 

 

 

994

 

Total Americas

 

1,330,638

 

 

 

1,325,643

 

 

 

1,220,818

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

 

280,437

 

 

 

252,423

 

 

 

228,667

 

Other revenues

 

14,517

 

 

 

7,860

 

 

 

10,422

 

Total EMEA

 

294,954

 

 

 

260,283

 

 

 

239,089

 

Other:

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

95

 

 

 

82

 

 

 

130

 

Total Other

 

95

 

 

 

82

 

 

 

130

 

 

$

1,625,687

 

 

$

1,586,008

 

 

$

1,460,037

 

 

Trade Accounts Receivable

The Company’s trade accounts receivable, net, consists of the following (in thousands):

 

 

December 31, 2018

 

 

January 1, 2018

 

Trade accounts receivable, net, current (1)

$

335,377

 

 

$

332,014

 

Trade accounts receivable, net, noncurrent (2)

 

15,948

 

 

 

2,078

 

 

$

351,325

 

 

$

334,092

 

 

 

(1)

Included in “Receivables, net” in the accompanying Consolidated Balance Sheets.  The January 1, 2018 balance includes the $0.8 million adjustment recorded upon adoption of ASC 606.  

 

(2)

Included in “Deferred charges and other assets” in the accompanying Consolidated Balance Sheets.  The January 1, 2018 balance includes a $2.1 million adjustment recorded upon adoption of ASC 606.  

The Company’s noncurrent trade accounts receivable result from (1) contracts with customers that include renewal provisions, and (2) a contract with a customer under a multi-year arrangement.  For contracts with customers that include renewal provisions, revenue is recognized up-front upon satisfaction of the associated performance obligations, but payments are received upon renewal.  Renewals occur in bi-annual and annual increments over the associated expected contract term, the majority of which range from two to five years.  The Company’s contract with a customer under a multi-year arrangement has a term of four years and is invoiced annually at the beginning of each annual coverage period.  The Company records a receivable related to revenue recognized for the multi-year arrangement as the Company has an unconditional right to invoice and receive payment in the future related to that arrangement.

Where the timing of revenue recognition differs from the timing of invoicing and payment, the Company has determined that its contracts do not include a significant financing component. A substantial amount of the consideration promised by the customer under the contracts that include renewal provisions is variable, and the amount and timing of that consideration varies based on the occurrence or nonoccurrence of future events that are not substantially within the Company’s control.  Furthermore, the primary purpose of the multi-year arrangement invoicing terms is to provide the customer with a simplified and predictable way of purchasing certain products, not to provide financing or to receiving financing from the Company’s customer.

Deferred Revenue and Customer Liabilities

Deferred revenue and customer liabilities consists of the following (in thousands):

 

 

December 31, 2018

 

 

January 1, 2018

 

Deferred revenue

$

3,655

 

 

$

4,598

 

Customer arrangements with termination rights

 

16,404

 

 

 

21,755

 

Estimated refund liabilities (1)

 

10,117

 

 

 

7,316

 

 

$

30,176

 

 

$

33,669

 

 

 

(1)

The January 1, 2018 balance includes the $1.0 million adjustment recorded upon adoption of ASC 606.

Deferred Revenue

The Company receives up-front fees in connection with certain contracts. In accordance with ASC 606, the up-front fees are recorded as a contract liability only to the extent a legally enforceable contract exists.  The termination right notice period, which typically vary up to 180 days, is the portion of the contract that is legally enforceable.  Accordingly, the up-front fees allocated to the notification period are recorded as deferred revenue, while the fees that extend beyond the notification period are classified as a customer arrangement with termination rights. These up-front fees do not represent a significant financing component since they were structured primarily to reduce the administrative burden in managing the operations of certain contracts, to provide the customer with un-interrupted service, and to assist in managing the overall risk and profitability of providing the services.

Revenues of $4.4 million were recognized during the year ended December 31, 2018 from amounts included in deferred revenue at January 1, 2018.  The Company expects to recognize the majority of its deferred revenue as of December 31, 2018 over the next 180 days.

Customer Liabilities – Customer Arrangements with Termination Rights

Customer arrangements with termination rights represent the amount of up-front fees received for unsatisfied performance obligations for periods that extend beyond the legally enforceable contract period. All customer arrangements with termination rights are classified as current as the customer can terminate the contracts and demand pro-rata refunds of the up-front fees over varying periods, typically up to 180 days.  The Company expects to recognize the majority of the customer arrangements with termination rights into revenue as the Company has not historically experienced a high rate of contract terminations.

Customer Liabilities – Refund Liabilities

Refund liabilities represent consideration received under the contract that the Company expects to ultimately refund to the customer and primarily relates to estimated penalties, holdbacks and chargebacks.  Penalties and holdbacks result from the failure to meet specified minimum service levels in certain contracts and other performance-based contingencies.  Chargebacks reflect the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred.  

Refund liabilities are generally resolved in 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency.

v3.10.0.1
Acquisitions
12 Months Ended
Dec. 31, 2018
Business Combinations [Abstract]  
Acquisitions

Note 3. Acquisitions

Symphony Acquisition

On October 18, 2018, the Company as guarantor and its wholly-owned subsidiary, SEI International Services S.a.r.l, a Luxembourg company, entered into the Symphony Purchase Agreement with Pascal Baker, Ian Barkin, David Brain, David Poole, FIS Nominee Limited, Baronsmead Venture Trust plc and Baronsmead Second Venture Trust plc (together, the “Symphony Sellers”) to acquire all of the outstanding shares of Symphony.

Symphony, headquartered in London, England, provides RPA services, offering RPA consulting, implementation, hosting and managed services for front, middle and back-office processes. Symphony serves numerous industries globally, including financial services, healthcare, business services, manufacturing, consumer products, communications, media and entertainment.

The aggregate purchase price of GBP 52.5 million ($67.6 million) is subject to certain post-closing adjustments related to Symphony’s working capital.  The Company paid GBP 44.6 million ($57.6 million) at the closing of the transaction on November 1, 2018 using cash on hand as well as $31.0 million of additional borrowings under the Company’s Credit Agreement. The present value of the remaining GBP 7.9 million ($10.0 million) of purchase price has been deferred and will be paid in equal installments over the next three years. The Symphony Purchase Agreement also provides for a three-year, retention based earnout payable in restricted stock units (“RSUs”) with a value of GBP 3.0 million. The acquisition resulted in $26.1 million of intangible assets, primarily customer relationships and trade names, $2.2 million of fixed assets and $36.4 million of goodwill.  

The Symphony Purchase Agreement contains customary representations and warranties, indemnification obligations and covenants.

The Company accounted for the Symphony acquisition in accordance with ASC 805, whereby the purchase price paid was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the closing date. Certain amounts are provisional and are subject to change, including the finalization of the working capital adjustment, tax analysis of the assets acquired and liabilities assumed, and goodwill.  The Company expects to complete its analysis of the purchase price allocation during the fourth quarter of 2019 and any resulting adjustments will be recorded in accordance with ASC 805.

WhistleOut Acquisition

On July 9, 2018, the Company, as guarantor, and its wholly-owned subsidiaries, Sykes Australia Pty Ltd, an Australian company, and Clear Link Technologies, LLC, a Delaware limited liability company, entered into and closed the WhistleOut Sale Agreement with WhistleOut Nominees Pty Ltd as trustee for the WhistleOut Holdings Unit Trust, CPC Investments USA Pty Ltd, JJZL Pty Ltd, Kenneth Wong as trustee for Wong Family Trust and C41 Pty Ltd as trustee for the Ottery Family Trust (together, the “WhistleOut Sellers”) to acquire all of the outstanding shares of WhistleOut.  

The aggregate purchase price of AUD 30.2 million ($22.4 million), paid at the closing of the transaction on July 9, 2018, resulted in $16.5 million of intangible assets, primarily indefinite-lived domain names, $2.4 million of fixed assets and $2.2 million of goodwill. The purchase price was funded through $22.0 million of additional borrowings under the Company’s Credit Agreement. The WhistleOut Sale Agreement provides for a three-year, retention based earnout of AUD 14.0 million.

The WhistleOut Sale Agreement contained customary representations and warranties, indemnification obligations and covenants.

The Company accounted for the WhistleOut acquisition in accordance with ASC 805, whereby the purchase price paid was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the closing date. Certain amounts are provisional and are subject to change, including the tax analysis of the assets acquired and liabilities assumed, and goodwill. The Company expects to complete its analysis of the purchase price allocation during the second quarter of 2019 and any resulting adjustments will be recorded in accordance with ASC 805.

Telecommunications Asset Acquisition

On April 24, 2017, the Company entered into the Telecommunications Asset Acquisition Purchase Agreement to acquire certain assets from a Global 2000 telecommunications services provider. The aggregate purchase price of $7.5 million, paid on May 31, 2017 using cash on hand, resulted in $6.0 million of property and equipment and $1.5 million of customer relationship intangibles. The Telecommunications Asset Acquisition Asset Purchase Agreement contained customary representations and warranties, indemnification obligations and covenants. The Telecommunications Asset acquisition was completed to strengthen and create new partnerships for the Company and expand its geographic footprint in North America.

The Company accounted for the Telecommunications Asset acquisition in accordance with ASC 805, whereby the fair value of the purchase price was allocated to the tangible and identifiable intangible assets acquired based on their estimated fair values as of the closing date. The Company completed its analysis of the purchase price allocation during the second quarter of 2017.

Clearlink Acquisition

On April 1, 2016, the Company acquired 100% of the outstanding membership units of Clearlink through a merger of Clearlink with and into a subsidiary of the Company (the “Merger”).  Clearlink, with its operations located in the U.S., is an inbound demand generation and sales conversion platform serving numerous Fortune 500 business-to-consumer and business-to-business clients across various industries and subsectors, including telecommunications, satellite television, home security and insurance. The results of Clearlink’s operations have been included in the Company’s consolidated financial statements since April 1, 2016 (the “Clearlink acquisition date”) in the Americas segment. The strategic acquisition of Clearlink expanded the Company’s suite of service offerings while creating differentiation in the marketplace, broadened its addressable market opportunity and extended executive level reach within the Company’s existing clients’ organizations.  This resulted in the Company paying a substantial premium for Clearlink, resulting in the recognition of goodwill. Pursuant to Federal income tax laws, intangibles and goodwill from the Clearlink acquisition are deductible over a 15-year amortization period.

The Clearlink purchase price totaled $207.9 million, consisting of the following:

 

 

Total

 

Cash (1)

$

209,186

 

Working capital adjustment

 

(1,278

)

 

$

207,908

 

 

 

(1)

Funded through borrowings under the Company's credit agreement.  See Note 18, Borrowings, for more information.

 

Approximately $2.6 million of the purchase price was placed in an escrow account as security for the indemnification obligations of Clearlink’s members under the Merger Agreement.  The escrow was released pursuant to the terms of the escrow agreement, but the Company subsequently asserted a claim of approximately $0.4 million against the Clearlink members.  This claim has been resolved by the parties for $0.2 million, with the outstanding amount received by the Company in December 2017.

The Company accounted for the Clearlink acquisition in accordance with ASC 805, whereby the purchase price paid was allocated to the tangible and identifiable intangibles acquired and liabilities assumed from Clearlink based on their estimated fair values as of the closing date. The Company completed its analysis of the purchase price allocation during the fourth quarter of 2016 and the resulting adjustments of $0.3 million to income taxes payable and goodwill were recorded in accordance with ASC 805.

Fair values were based on management’s estimates and assumptions including variations of the income approach, the cost approach and the market approach.

The amount of Clearlink’s revenues and net income since the April 1, 2016 acquisition date, included in the Company’s Consolidated Statement of Operations for the period indicated below, was as follows (in thousands):

 

 

From April 1, 2016

Through

December 31, 2016

 

Revenues

$

123,289

 

Net income

$

1,563

 

 

The following table presents the unaudited pro forma combined revenues and net earnings as if Clearlink had been included in the consolidated results of the Company for the year ended December 31, 2016. The pro forma financial information is not indicative of the results of operations that would have been achieved if the acquisition and related borrowings had taken place on January 1, 2016 (in thousands):

 

 

Year Ended

December 31, 2016

 

Revenues

$

1,493,866

 

Net income

$

65,662

 

 

 

 

 

Net income per common share:

 

 

 

Basic

$

1.57

 

Diluted

$

1.55

 

 

These amounts were calculated to reflect the additional depreciation, amortization, interest expense and rent expense that would have been incurred assuming the fair value adjustments and borrowings occurred on January 1, 2016, together with the consequential tax effects. In addition, these amounts exclude costs incurred which are directly attributable to the acquisition, and which do not have a continuing impact on the combined companies’ operating results. Included in these costs are advisory and legal costs, net of the tax effects.

Merger and integration costs associated with Clearlink included in “General and administrative” costs in the accompanying Consolidated Statement of Operations for the year ended December 31, 2016 were as follows (none in 2018 and 2017) (in thousands):

 

 

Year Ended

December 31, 2016

 

Severance costs:

 

 

 

Americas

$

135

 

 

 

 

 

Transaction and integration costs:

 

 

 

Americas

 

29

 

Other

 

4,470

 

 

 

4,499

 

 

 

 

 

Total merger and integration costs

$

4,634

 

 

v3.10.0.1
Costs Associated with Exit or Disposal Activities
12 Months Ended
Dec. 31, 2018
Restructuring And Related Activities [Abstract]  
Costs Associated with Exit or Disposal Activities

Note 4. Costs Associated with Exit or Disposal Activities

Americas 2018 Exit Plan

During the second quarter of 2018, the Company initiated a restructuring plan to streamline excess capacity through targeted seat reductions (the “Americas 2018 Exit Plan”) in an on-going effort to manage and optimize capacity utilization. The Americas 2018 Exit Plan includes, but is not limited to, closing customer contact management centers and consolidating leased space in various locations in the U.S. and Canada. The Company finalized the remainder of the site closures under the Americas 2018 Exit Plan as of December 31, 2018.

The Company’s actions resulted in a reduction in seats as well as anticipated general and administrative cost savings, and lower depreciation expense resulting from the 2018 site closures.

The cumulative total costs expected and incurred to date related to cash and non-cash expenditures resulting from the Americas 2018 Exit Plan are outlined below as of December 31, 2018 (in thousands):

 

 

Cumulative Costs Incurred To Date

 

Lease obligations and facility exit costs (1)

$

7,077

 

Severance and related costs (2)

 

3,429

 

Severance and related costs (1)

 

1,035

 

Non-cash impairment charges

 

5,875

 

 

$

17,416

 

 

 

(1)

Related to “General and administrative” costs.

 

(2)

Related to “Direct salaries and related costs.

The total costs expected to be incurred under the Americas 2018 Exit Plan increased $1.4 million since the initiation of the plan as the Company progressed with its plan and actual costs became known. No further costs are expected to be incurred under the plan.  The Company has paid $9.3 million in cash through December 31, 2018.  

The following table summarizes the accrued liability and related charges for the year ended December 31, 2018 (none in 2017 and 2016) (in thousands):

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

Balance at the beginning of the period

$

 

 

$

 

 

$

 

Charges included in "Direct salaries and related costs"

 

 

 

 

3,429

 

 

 

3,429

 

Charges included in "General and administrative"

 

7,077

 

 

 

1,035

 

 

 

8,112

 

Cash payments

 

(5,643

)

 

 

(3,647

)

 

 

(9,290

)

Balance sheet reclassifications (1)

 

335

 

 

 

 

 

 

335

 

Balance at the end of the period

$

1,769

 

 

$

817

 

 

$

2,586

 

 

 

(1)

Consists of the reclassification of deferred rent balances to the restructuring liability for locations subject to closure.  

Restructuring Liability Classification

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with the Americas 2018 Exit Plan as of December 31, 2018 (none in 2017) (in thousands):

 

 

December 31, 2018

 

Lease obligations and facility exit costs:

 

 

 

Included in "Accounts payable"

$

100

 

Included in "Other accrued expenses and current liabilities"

 

952

 

Included in "Other long-term liabilities"

 

717

 

 

 

1,769

 

Severance and related costs:

 

 

 

Included in "Accrued employee compensation and benefits"

 

793

 

Included in "Other accrued expenses and current liabilities"

 

24

 

 

 

817

 

 

$

2,586

 

 

The long-term accrued restructuring liability relates to future rent obligations to be paid through the remainder of the lease terms, the last of which ends in June 2021.

v3.10.0.1
Fair Value
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value

Note 5. Fair Value

The Company's assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following (in thousands):

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

December 31, 2018

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward and option

   contracts (1)

$

1,068

 

 

$

 

 

$

1,068

 

 

$

 

Embedded derivatives (1)

 

10

 

 

 

 

 

 

 

 

 

10

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

8,075

 

 

 

8,075

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

3,367

 

 

 

3,367

 

 

 

 

 

 

 

 

$

12,520

 

 

$

11,442

 

 

$

1,068

 

 

$

10

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward and option

   contracts (1)

$

2,895

 

 

$

 

 

$

2,895

 

 

$

 

Embedded derivatives (1)

 

369

 

 

 

 

 

 

 

 

 

369

 

 

$

3,264

 

 

$

 

 

$

2,895

 

 

$

369

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

December 31, 2017

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward and option

   contracts (1)

$

3,848

 

 

$

 

 

$

3,848

 

 

$

 

Embedded derivatives (1)

 

52

 

 

 

 

 

 

 

 

 

52

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

8,094

 

 

 

8,094

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

3,533

 

 

 

3,533

 

 

 

 

 

 

 

 

$

15,527

 

 

$

11,627

 

 

$

3,848

 

 

$

52

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward and option

   contracts (1)

$

256

 

 

$

 

 

$

256

 

 

$

 

Embedded derivatives (1)

 

579

 

 

 

 

 

 

 

 

 

579

 

 

$

835

 

 

$

 

 

$

256

 

 

$

579

 

 

 

(1)

See Note 11, Financial Derivatives, for the classification in the accompanying Consolidated Balance Sheets.

 

(2)

Included in “Other current assets” in the accompanying Consolidated Balance Sheets.  See Note 12, Investments Held in Rabbi Trust.

Reconciliations of Fair Value Measurements Categorized within Level 3 of the Fair Value Hierarchy

Embedded Derivatives in Lease Agreements

A rollforward of the net asset (liability) activity in the Company’s fair value of the embedded derivatives is as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Balance at the beginning of the period

$

(527

)

 

$

(555

)

 

$

 

Gains (losses) recognized in "Other income (expense), net"

 

(7

)

 

 

(139

)

 

 

(714

)

Settlements

 

158

 

 

 

170

 

 

 

(7

)

Effect of foreign currency

 

17

 

 

 

(3

)

 

 

166

 

Balance at the end of the period

$

(359

)

 

$

(527

)

 

$

(555

)

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized gains (losses) included in "Other income

   (expense), net" related to embedded derivatives held at the

   end of the period

$

15

 

 

$

(325

)

 

$

3

 

 

Contingent Consideration

A rollforward of the activity in the Company’s fair value of the contingent consideration (liability) is as follows (none in 2018) (in thousands):

 

 

Years Ended December 31,

 

 

2017

 

 

2016

 

Balance at the beginning of the period

$

(6,100

)

 

$

(6,280

)

Acquisition (1)

 

 

 

 

(2,779

)

Imputed interest

 

(76

)

 

 

(754

)

Fair value gain (loss) adjustments (2)

 

605

 

 

 

2,250

 

Settlements

 

5,760

 

 

 

1,396

 

Effect of foreign currency

 

(189

)

 

 

67

 

Balance at the end of the period

$

 

 

$

(6,100

)

Change in unrealized gains (losses) included in "General and

   administrative" related to contingent consideration

   outstanding at the end of the period

$

 

 

$

2,268

 

 

 

(1)

Liabilities acquired as part of the Clearlink acquisition on April 1, 2016.  See Note 3, Acquisitions.

 

(2)

Included in “General and administrative” costs in the accompanying Consolidated Statements of Operations.

The Company recorded a fair value gain of $2.6 million to the Qelp contingent consideration in “General and administrative” during the year ended December 31, 2016 due to the execution of an addendum to the Qelp purchase agreement dated September 26, 2016, subject to which the Company agreed to pay the Sellers EUR 4.0 million by June 30, 2017 ($4.2 million as of December 31, 2016). The Company paid $4.4 million in May 2017 to settle the outstanding contingent consideration obligation.

The Company recorded a net fair value gain of $0.6 million and fair value loss of $0.3 million to the Clearlink contingent consideration in “General and administrative” during the years ended December 31, 2017 and 2016, respectively.  All outstanding Clearlink contingent consideration liabilities were paid prior to December 31, 2017.

The Company accreted interest expense each period using the effective interest method until the contingent consideration reached its estimated future value. Interest expense related to the contingent consideration was included in “Interest (expense)” in the accompanying Consolidated Statements of Operations for the years ended December 31, 2017 and 2016.

Non-Recurring Fair Value

Certain assets, under certain conditions, are measured at fair value on a nonrecurring basis utilizing Level 3 inputs, as described in Note 1, Overview and Summary of Significant Accounting Policies, like those associated with acquired businesses, including goodwill, other intangible assets, other long-lived assets and equity method investments. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if these assets were determined to be impaired.

The adjusted carrying values for assets measured at fair value on a nonrecurring basis (no liabilities) subject to the requirements of ASC 820 were not material at December 31, 2018 and 2017. The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) (none in 2016):

 

 

Total Impairment (Loss)

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

Americas:

 

 

 

 

 

 

 

Property and equipment, net

$

(9,401

)

 

$

(5,410

)

 

In connection with the closure of certain under-utilized customer contact management centers and the consolidation of leased space in the U.S. and Canada, the Company recorded impairment charges of $9.4 million and $5.2 million during the years ended December 2018 and 2017, respectively, related to leasehold improvements, equipment, furniture and fixtures which were not recoverable. See Note 4, Costs Associated with Exit or Disposal Activities, for further information.

The Company recorded an impairment charge of $0.2 million related to the write-down of a vacant and unused parcel of land in the U.S. to its estimated fair value during the year ended December 31, 2017.

v3.10.0.1
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

Note 6. Goodwill and Intangible Assets

Intangible Assets

The following table presents the Company’s purchased intangible assets as of December 31, 2018 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

189,697

 

 

$

(106,502

)

 

$

83,195

 

 

 

10

 

Trade names and trademarks

 

19,236

 

 

 

(10,594

)

 

 

8,642

 

 

 

8

 

Non-compete agreements

 

2,746

 

 

 

(1,724

)

 

 

1,022

 

 

 

3

 

Content library

 

517

 

 

 

(517

)

 

 

 

 

 

2

 

Proprietary software

 

1,040

 

 

 

(725

)

 

 

315

 

 

 

4

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

80,857

 

 

 

 

 

 

80,857

 

 

N/A

 

 

$

294,093

 

 

$

(120,062

)

 

$

174,031

 

 

 

5

 

 

The following table presents the Company’s purchased intangible assets as of December 31, 2017 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

170,853

 

 

$

(95,175

)

 

$

75,678

 

 

 

10

 

Trade names and trademarks

 

14,138

 

 

 

(8,797

)

 

 

5,341

 

 

 

7

 

Non-compete agreements

 

1,820

 

 

 

(1,052

)

 

 

768

 

 

 

3

 

Content library

 

542

 

 

 

(542

)

 

 

 

 

 

2

 

Proprietary software

 

1,040

 

 

 

(585

)

 

 

455

 

 

 

4

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

58,035

 

 

 

 

 

 

58,035

 

 

N/A

 

 

$

246,428

 

 

$

(106,151

)

 

$

140,277

 

 

 

6

 

 

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to December 31, 2018, is as follows (in thousands):

 

Years Ending December 31,

Amount

 

2019

 

16,679

 

2020

 

14,013

 

2021

 

9,437

 

2022

 

8,133

 

2023

 

7,282

 

2024 and thereafter

 

37,630

 

 

Goodwill

Changes in goodwill for the year ended December 31, 2018 consist of the following (in thousands):

 

 

January 1, 2018

 

 

Acquisition

 

 

Effect of

Foreign

Currency

 

 

December 31, 2018

 

Americas

$

258,496

 

 

$

2,175

 

 

$

(5,235

)

 

$

255,436

 

EMEA

 

10,769

 

 

 

36,361

 

 

 

(49

)

 

 

47,081

 

 

$

269,265

 

 

$

38,536

 

 

$

(5,284

)

 

$

302,517

 

 

Changes in goodwill for the year ended December 31, 2017 consist of the following (in thousands):

 

 

January 1, 2017

 

 

Acquisition

 

 

Effect of

Foreign

Currency

 

 

December 31, 2017

 

Americas

$

255,842

 

 

$

390

 

 

$

2,264

 

 

$

258,496

 

EMEA

 

9,562

 

 

 

 

 

 

1,207

 

 

 

10,769

 

 

$

265,404

 

 

$

390

 

 

$

3,471

 

 

$

269,265

 

 

 

(1)

See Note 3, Acquisitions, for further information.

The Company performs its annual goodwill impairment test during the third quarter, or more frequently, if indicators of impairment exist.

For the annual goodwill impairment test, the Company elected to forgo the option to first assess qualitative factors and performed its annual quantitative goodwill impairment test as of July 31, 2018.  Under ASC 350, the carrying value of assets is calculated at the reporting unit level. The quantitative assessment of goodwill includes comparing a reporting unit’s calculated fair value to its carrying value. The calculation of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth and determination of the Company’s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. If the fair value of the reporting unit is less than its carrying value, goodwill is considered impaired and an impairment loss is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit.

The process of evaluating the fair value of the reporting units is highly subjective and requires significant judgment and estimates as the reporting units operate in a number of markets and geographical regions. The Company considered the income and market approaches to determine its best estimates of fair value, which incorporated the following significant assumptions:

 

Revenue projections, including revenue growth during the forecast periods;

 

EBITDA margin projections over the forecast periods;

 

Estimated income tax rates;

 

Estimated capital expenditures; and

 

Discount rates based on various inputs, including the risks associated with the specific reporting units as well as their revenue growth and EBITDA margin assumptions.

As of July 31, 2018, the Company concluded that goodwill was not impaired for all six of its reporting units with goodwill, based on generally accepted valuation techniques and the significant assumptions outlined above.  While the fair values of four of the six reporting units were substantially in excess of their carrying value, the Qelp and Clearlink reporting units’ fair values exceeded the respective carrying values, although not substantially.

The Qelp and Clearlink reporting units are at risk of future impairment if projected operating results are not met or other inputs into the fair value measurement change.  However, as of December 31, 2018, the Company believes there were no indicators of impairment related to Qelp’s $10.2 million of goodwill and Clearlink’s $71.2 million of goodwill. Additionally as of December 31, 2018, the Company noted no indicators of impairment related to Symphony’s $36.9 million of goodwill, recorded as a result of the acquisition on November 1, 2018.

v3.10.0.1
Concentrations of Credit Risk
12 Months Ended
Dec. 31, 2018
Risks And Uncertainties [Abstract]  
Concentrations of Credit Risk

Note 7. Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade receivables. The Company’s credit concentrations are limited due to the wide variety of customers and markets in which the Company’s services are sold. See Note 11, Financial Derivatives, for a discussion of the Company’s credit risk relating to financial derivative instruments, and Note 25, Segments and Geographic Information, for a discussion of the Company’s customer concentration.

v3.10.0.1
Receivables, Net
12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Receivables, Net

Note 8. Receivables, Net

Receivables, net consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Trade accounts receivable, current

$

338,473

 

 

$

334,147

 

Income taxes receivable

 

916

 

 

 

4,138

 

Other

 

11,132

 

 

 

6,631

 

Receivables, gross

 

350,521

 

 

 

344,916

 

Less: Allowance for doubtful accounts

 

3,096

 

 

 

2,958

 

Receivables, net

$

347,425

 

 

$

341,958

 

Allowance for doubtful accounts as a percent of trade accounts receivable, current

 

0.9

%

 

 

0.9

%

v3.10.0.1
Prepaid Expenses
12 Months Ended
Dec. 31, 2018
Text Block [Abstract]  
Prepaid Expenses

Note 9. Prepaid Expenses

 

Prepaid expenses consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Prepaid maintenance

$

5,888

 

 

$

7,773

 

Prepaid insurance

 

4,500

 

 

 

4,380

 

Prepaid software

 

3,499

 

 

 

1,638

 

Prepaid rent

 

3,471

 

 

 

3,767

 

Prepaid other

 

6,396

 

 

 

4,574

 

 

$

23,754

 

 

$

22,132

 

 

v3.10.0.1
Other Current Assets
12 Months Ended
Dec. 31, 2018
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]  
Other Current Assets

Note 10. Other Current Assets

Other current assets consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Investments held in rabbi trust (Note 12)

$

11,442

 

 

$

11,627

 

Deferred rent

 

1,867

 

 

 

1,936

 

Financial derivatives (Note 11)

 

1,078

 

 

 

3,857

 

Other current assets

 

2,374

 

 

 

2,323

 

 

$

16,761

 

 

$

19,743

 

 

v3.10.0.1
Financial Derivatives
12 Months Ended
Dec. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Financial Derivatives

Note 11. Financial Derivatives

Cash Flow Hedges – The Company has derivative assets and liabilities relating to outstanding forward contracts and options, designated as cash flow hedges, as defined under ASC 815 Derivatives and Hedging (“ASC 815”), consisting of Philippine Peso, Costa Rican Colon, Hungarian Forint and Romanian Leu contracts. These contracts are entered into to hedge the exposure to variability in the cash flows of a specific asset or liability, or of a forecasted transaction that is attributable to changes in exchange rates.

The deferred gains (losses) and related taxes on the Company’s cash flow hedges recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) in the accompanying Consolidated Balance Sheets are as follows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Deferred gains (losses) in AOCI

$

(1,825

)

 

$

2,550

 

Tax on deferred gains (losses) in AOCI

 

(39

)

 

 

(79

)

Deferred gains (losses) in AOCI, net of taxes

$

(1,864

)

 

$

2,471

 

Deferred gains (losses) expected to be reclassified

   to "Revenues" from AOCI during the next

   twelve months

$

(1,825

)

 

 

 

 

 

Deferred gains (losses) and other future reclassifications from AOCI will fluctuate with movements in the underlying market price of the forward contracts and options as well as the related settlement of forecasted transactions.

Net Investment Hedge From time to time, the Company enters into foreign exchange forward contracts to hedge its net investment in certain foreign operations, as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against the risk that the net assets of certain foreign subsidiaries will be adversely affected by changes in exchange rates and economic exposures related to the Company’s foreign currency-based investments in these subsidiaries.  

Non-Designated Hedges

Foreign Currency Forward Contracts The Company also periodically enters into foreign currency hedge contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against adverse foreign currency moves relating primarily to intercompany receivables and payables, and other assets and liabilities that are denominated in currencies other than the Company’s subsidiaries’ functional currencies. See Note 1, Overview and Summary of Significant Accounting Policies, for additional information on the Company’s purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies.

Embedded DerivativesThe Company enters into certain lease agreements which require payments not denominated in the functional currency of any substantial party to the agreements. The foreign currency component of these contracts meets the criteria under ASC 815 as embedded derivatives. The Company has determined that the embedded derivatives are not clearly and closely related to the economic characteristics and risks of the host contracts (lease agreements), and separate, stand-alone instruments with the same terms as the embedded derivative instruments would otherwise qualify as derivative instruments, thereby requiring separation from the lease agreements and recognition at fair value. Such instruments do not qualify for hedge accounting under ASC 815.

The Company had the following outstanding foreign currency forward contracts and options, and embedded derivatives (in thousands):

 

 

December 31, 2018

 

December 31, 2017

Contract Type

Notional

Amount in

USD

 

 

Settle

Through

Date

 

Notional

Amount in

USD

 

 

Settle

Through

Date

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

Options:

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

$

26,250

 

 

December 2019

 

$

78,000

 

 

December 2018

Forwards:

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

 

39,000

 

 

September 2019

 

 

3,000

 

 

June 2018

US Dollars/Costa Rican Colones

 

67,000

 

 

December 2019

 

 

70,000

 

 

March 2019

Non-designated hedges:

 

 

 

 

 

 

 

 

 

 

 

Forwards

 

19,261

 

 

November 2021

 

 

9,253

 

 

March 2018

Embedded derivatives

 

14,069

 

 

April 2030

 

 

13,519

 

 

April 2030

 

Master netting agreements exist with each respective counterparty to reduce credit risk by permitting net settlement of derivative positions. In the event of default by the Company or one of its counterparties, these agreements include a set-off clause that provides the non-defaulting party the right to net settle all derivative transactions, regardless of the currency and settlement date. The maximum amount of loss due to credit risk that, based on gross fair value, the Company would incur if parties to the derivative transactions that make up the concentration failed to perform according to the terms of the contracts was $1.1 million and $3.8 million as of December 31, 2018 and 2017, respectively. After consideration of these netting arrangements and offsetting positions by counterparty, the total net settlement amount as it relates to these positions are asset positions of $1.1 million and $3.6 million, and liability positions of $2.9 million and $0 as of December 31, 2018 and 2017, respectively.

Although legally enforceable master netting arrangements exist between the Company and each counterparty, the Company has elected to present the derivative assets and derivative liabilities on a gross basis in the accompanying Consolidated Balance Sheets.  Additionally, the Company is not required to pledge, nor is it entitled to receive, cash collateral related to these derivative transactions.

The following tables present the fair value of the Company’s derivative instruments included in the accompanying Consolidated Balance Sheets (in thousands):

 

 

Derivative Assets

 

 

December 31, 2018

 

 

December 31, 2017

 

 

Fair Value

 

 

Fair Value

 

Derivatives designated as cash flow hedging

   instruments under ASC 815:

 

 

 

 

 

 

 

Foreign currency forward and option contracts (1)

$

1,038

 

 

$

3,604

 

Derivatives not designated as hedging

   instruments under ASC 815:

 

 

 

 

 

 

 

Foreign currency forward contracts (1)

 

30

 

 

 

244

 

Embedded derivatives (1)

 

10

 

 

 

9

 

Embedded derivatives (2)

 

 

 

 

43

 

Total derivative assets

$

1,078

 

 

$

3,900

 

 

 

Derivative Liabilities

 

 

December 31, 2018

 

 

December 31, 2017

 

 

Fair Value

 

 

Fair Value

 

Derivatives designated as cash flow hedging

   instruments under ASC 815:

 

 

 

 

 

 

 

Foreign currency forward and option contracts (3)

$

2,604

 

 

$

175

 

Foreign currency forward and option contracts (4)

 

 

 

 

81

 

 

 

2,604

 

 

 

256

 

Derivatives not designated as hedging

   instruments under ASC 815:

 

 

 

 

 

 

 

Foreign currency forward contracts (3)

 

247

 

 

 

 

Foreign currency forward contracts (4)

 

44

 

 

 

 

Embedded derivatives (3)

 

8

 

 

 

189

 

Embedded derivatives (4)

 

361

 

 

 

390

 

Total derivative liabilities

$

3,264

 

 

$

835

 

 

 

(1)

Included in "Other current assets" in the accompanying Consolidated Balance Sheets.

 

(2)

Included in "Deferred charges and other assets" in the accompanying Consolidated Balance Sheets.

 

(3)

Included in "Other accrued expenses and current liabilities" in the accompanying Consolidated Balance Sheets.

 

(4)

Included in "Other long-term liabilities" in the accompanying Consolidated Balance Sheets.

The following table presents the effect of the Company’s derivative instruments included in the accompanying Consolidated Financial Statements for the years ended December 31, 2018, 2017 and 2016 (in thousands):

 

 

 

Gain (Loss) Recognized

in AOCI on Derivatives

(Effective Portion)

 

 

Gain (Loss) Reclassified

From AOCI Into "Revenues"

(Effective Portion)

 

 

Gain (Loss) Recognized in

"Revenues" on Derivatives

(Ineffective Portion and

Amount Excluded from

Effectiveness Testing)

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

 

2018

 

 

2017

 

 

2016

 

 

2018

 

 

2017

 

 

2016

 

Derivatives designated as cash

   flow hedging instruments

   under ASC 815:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward and option

   contracts

 

$

(4,259

)

 

$

2,277

 

 

$

(2,308

)

 

$

(26

)

 

$

(2,536

)

 

$

(553

)

 

$

(28

)

 

$

(1

)

 

$

(5

)

Derivatives designated as net

   investment hedging instruments

   under ASC 815:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

 

 

 

(8,352

)

 

 

3,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(4,259

)

 

$

(6,075

)

 

$

1,101

 

 

$

(26

)

 

$

(2,536

)

 

$

(553

)

 

$

(28

)

 

$

(1

)

 

$

(5

)

 

The following table presents the gains (losses) recognized in “Other income (expense), net” of the Company’s derivative instruments included in the accompanying Consolidated Financial Statements for the years ended December 31, 2018, 2017 and 2016 (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Derivatives not designated as hedging instruments

   under ASC 815:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

$

(1,744

)

 

$

282

 

 

$

(1,556

)

Embedded derivatives

 

(7

)

 

 

(139

)

 

 

(714

)

 

$

(1,751

)

 

$

143

 

 

$

(2,270

)

 

v3.10.0.1
Investments Held in Rabbi Trust
12 Months Ended
Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]  
Investments Held in Rabbi Trust

Note 12.  Investments Held in Rabbi Trust

The Company’s investments held in rabbi trust, classified as trading securities and included in “Other current assets” in the accompanying Consolidated Balance Sheets, at fair value, consist of the following (in thousands):

 

 

December 31, 2018

 

 

December 31, 2017

 

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

Mutual funds

$

8,864

 

 

$

11,442

 

 

$

8,096

 

 

$

11,627

 

 

The mutual funds held in the rabbi trust were 71% equity-based and 29% debt-based as of December 31, 2018. Net investment income (losses), included in “Other income (expense), net” in the accompanying Consolidated Statements of Operations consists of the following (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Net realized gains (losses) from sale of trading

   securities

$

10

 

 

$

195

 

 

$

241

 

Dividend and interest income

 

635

 

 

 

422

 

 

 

92

 

Net unrealized holding gains (losses)

 

(1,512

)

 

 

1,002

 

 

 

249

 

 

 

(867

)

 

 

1,619

 

 

$

582

 

 

v3.10.0.1
Property and Equipment, Net
12 Months Ended
Dec. 31, 2018
Property Plant And Equipment [Abstract]  
Property and Equipment, Net

Note 13. Property and Equipment, Net

Property and equipment, net consists of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Land

$

2,185

 

 

$

3,217

 

Buildings and leasehold improvements

 

129,582

 

 

 

135,100

 

Equipment, furniture and fixtures

 

298,537

 

 

 

312,636

 

Capitalized internally developed software costs

 

41,883

 

 

 

34,886

 

Transportation equipment

 

636

 

 

 

556

 

Construction in progress

 

2,253

 

 

 

7,462

 

 

 

475,076

 

 

 

493,857

 

Less: Accumulated depreciation

 

339,658

 

 

 

333,067

 

 

$

135,418

 

 

$

160,790

 

 

Capitalized internally developed software, net of depreciation, included in “Property and equipment, net” in the accompanying Consolidated Balance Sheets was as follows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Capitalized internally developed software costs, net

$

18,352

 

 

$

15,876

 

 

Sale of Fixed Assets, Land and Building Located in Wise, Virginia

In October 2018, the Company sold the fixed assets, land and building located in Wise, Virginia, with a net carrying value of $0.7 million, for cash of $0.8 million (net of selling costs of less than $0.1 million).  This resulted in a net gain on disposal of property and equipment of less than $0.1 million, which is included in “General and administrative” in the accompanying Consolidated Statement of Operations for the year ended December 31, 2018.

Sale of Fixed Assets, Land and Building Located in Ponca City, Oklahoma

In September 2018, the Company sold the fixed assets, land and building located in Ponca City, Oklahoma, with a net carrying value of $0.5 million, for cash of $0.2 million (net of selling costs of less than $0.1 million).  This resulted in a net loss on disposal of property and equipment of $0.3 million, which is included in “General and administrative” in the accompanying Consolidated Statement of Operations for the year ended December 31, 2018.

Sale of Fixed Assets, Land and Building Located in Morganfield, Kentucky

In December 2016, the Company sold the fixed assets, land and building located in Morganfield, Kentucky, with a net carrying value of $0.3 million, for cash of $0.5 million (net of selling costs of less than $0.1 million).  This resulted in a net gain on disposal of property and equipment of $0.2 million, which is included in “General and administrative” in the accompanying Consolidated Statement of Operations for the year ended December 31, 2016.

v3.10.0.1
Deferred Charges and Other Assets
12 Months Ended
Dec. 31, 2018
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]  
Deferred Charges and Other Assets

Note 14. Deferred Charges and Other Assets

Deferred charges and other assets consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Trade accounts receivable, net, noncurrent (Note 2)

$

15,948

 

 

$

 

Equity method investments (Note 1)

 

9,702

 

 

 

10,341

 

Net deferred tax assets, noncurrent (Note 20)

 

5,797

 

 

 

6,657

 

Rent and other deposits

 

5,687

 

 

 

5,379

 

Value added tax receivables, net, noncurrent

 

519

 

 

 

548

 

Other

 

5,711

 

 

 

6,268

 

 

$

43,364

 

 

$

29,193

 

 

v3.10.0.1
Accrued Employee Compensation and Benefits
12 Months Ended
Dec. 31, 2018
Text Block [Abstract]  
Accrued Employee Compensation and Benefits

Note 15. Accrued Employee Compensation and Benefits

Accrued employee compensation and benefits consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Accrued compensation

$

34,095

 

 

$

42,505

 

Accrued bonus and commissions

 

19,835

 

 

 

22,523

 

Accrued vacation

 

19,019

 

 

 

18,848

 

Accrued employment taxes

 

15,598

 

 

 

11,412

 

Accrued severance and related costs (Note 4)

 

793

 

 

 

 

Other

 

6,473

 

 

 

7,611

 

 

$

95,813

 

 

$

102,899

 

 

v3.10.0.1
Other Accrued Expenses and Current Liabilities
12 Months Ended
Dec. 31, 2018
Payables And Accruals [Abstract]  
Other Accrued Expenses and Current Liabilities

Note 16. Other Accrued Expenses and Current Liabilities

Other accrued expenses and current liabilities consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Deferred Symphony acquisition purchase price (Note 3)

$

3,394

 

 

$

 

Accrued legal and professional fees

 

3,380

 

 

 

3,417

 

Accrued rent

 

3,283

 

 

 

2,983

 

Financial derivatives (Note 11)

 

2,859

 

 

 

364

 

Accrued customer-acquisition advertising costs (Note 1)

 

2,831

 

 

 

403

 

Accrued telephone charges

 

2,000

 

 

 

1,515

 

Accrued roadside assistance claim costs

 

1,330

 

 

 

2,011

 

Accrued utilities

 

1,148

 

 

 

1,694

 

Accrued restructuring (Note 4)

 

976

 

 

 

 

Other

 

10,034

 

 

 

18,501

 

 

$

31,235

 

 

$

30,888

 

 

v3.10.0.1
Deferred Grants
12 Months Ended
Dec. 31, 2018
Text Block [Abstract]  
Deferred Grants

Note 17. Deferred Grants

Deferred grants, net of accumulated amortization, consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Property grants

$

1,983

 

 

$

2,843

 

Lease grants

 

369

 

 

 

507

 

Employment grants

 

13

 

 

 

61

 

Total deferred grants

 

2,365

 

 

 

3,411

 

Less: Lease grants - short-term (1)

 

(111

)

 

 

(117

)

Less: Employment grants - short-term (1)

 

(13

)

 

 

(61

)

Total long-term deferred grants

$

2,241

 

 

$

3,233

 

 

 

(1)

Included in "Other accrued expenses and current liabilities" in the accompanying Consolidated Balance Sheets.

v3.10.0.1
Borrowings
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Borrowings

Note 18. Borrowings

On May 12, 2015, the Company entered into a $440 million revolving credit facility (the “Credit Agreement”) with a group of lenders and KeyBank National Association, as Lead Arranger, Sole Book Runner, Administrative Agent, Swing Line Lender and Issuing Lender (“KeyBank”). The Credit Agreement is subject to certain borrowing limitations and includes certain customary financial and restrictive covenants.

The Credit Agreement includes a $200 million alternate-currency sub-facility, a $10 million swingline sub-facility and a $35 million letter of credit sub-facility, and may be used for general corporate purposes including acquisitions, share repurchases, working capital support and letters of credit, subject to certain limitations.  The Company is not currently aware of any inability of its lenders to provide access to the full commitment of funds that exist under the revolving credit facility, if necessary.  However, there can be no assurance that such facility will be available to the Company, even though it is a binding commitment of the financial institutions.

The Credit Agreement matures on May 12, 2020, and had outstanding borrowings of $102.0 million and $275.0 million at December 31, 2018 and 2017, respectively, included in “Long-term debt” in the accompanying Consolidated Balance Sheets.

Borrowings under the Credit Agreement bear interest at the rates set forth in the Credit Agreement.  In addition, the Company is required to pay certain customary fees, including a commitment fee determined quarterly based on the Company’s leverage ratio and due quarterly in arrears as calculated on the average unused amount of the Credit Agreement.

The Credit Agreement is guaranteed by all the Company’s existing and future direct and indirect material U.S. subsidiaries and secured by a pledge of 100% of the non-voting and 65% of the voting capital stock of all the direct foreign subsidiaries of the Company and those of the guarantors.

In May 2015, the Company paid an underwriting fee of $0.9 million for the Credit Agreement, which is deferred and amortized over the term of the loan, along with the deferred loan fees of $0.4 million related to the previous credit agreement.

In January 2018, the Company repaid $175.0 million of long-term debt outstanding under its Credit Agreement, primarily using funds repatriated from its foreign subsidiaries.

The following table presents information related to our credit agreements (dollars in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Average daily utilization

$

106,189

 

 

$

268,775

 

 

$

222,612

 

Interest expense (1), (2)

$

3,817

 

 

$

6,668

 

 

$

3,952

 

Weighted average interest rate (2)

 

3.6

%

 

 

2.5

%

 

 

1.8

%

 

 

(1)

Excludes the amortization of deferred loan fees.

 

(2)

Includes the commitment fee.

On February 14, 2019, the Company entered into a $500 million revolving credit facility, which replaced the Company’s existing $440 million revolving credit facility. The prior $440 million agreement was terminated simultaneously upon execution of the new agreement.  The Company’s new revolving credit facility will mature on February 14, 2024, includes a $200 million alternate-currency sub-facility, a $15 million swingline sub-facility and a $15 million letter of credit sub-facility, and has terms that are substantially similar to the Company’s $440 million revolving credit facility.

The Company is not currently aware of any inability of its lenders to provide access to the full commitment of funds that exist under the revolving credit facility, if necessary.  However, there can be no assurance that such facility will be available to the Company, even though it is a binding commitment of the financial institutions.

v3.10.0.1
Accumulated Other Comprehensive Income (Loss)
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

Note 19. Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) consist of the following (in thousands):

 

 

Foreign

Currency

Translation

Adjustments

 

 

Unrealized

Gain

(Loss) on

Net

Investment

Hedge

 

 

Unrealized

Gain (Loss)

on

Cash Flow

Hedging

Instruments

 

 

Unrealized

Actuarial

Gain

(Loss)

Related

to Pension

Liability

 

 

Unrealized

Gain

(Loss) on

Postretirement

Obligation

 

 

Total

 

Balance at January 1, 2016

$

(58,601

)

 

$

4,170

 

 

$

(527

)

 

$

1,029

 

 

$

267

 

 

$

(53,662

)

Pre-tax amount

 

(13,832

)

 

 

3,409

 

 

 

(2,313

)

 

 

212

 

 

 

(9

)

 

 

(12,533

)

Tax (provision) benefit

 

 

 

 

(1,313

)

 

 

72

 

 

 

(8

)

 

 

 

 

 

(1,249

)

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

527

 

 

 

(52

)

 

 

(58

)

 

 

417

 

Foreign currency translation

 

40

 

 

 

 

 

 

16

 

 

 

(56

)

 

 

 

 

 

 

Balance at December 31, 2016

 

(72,393

)

 

 

6,266

 

 

 

(2,225

)

 

 

1,125

 

 

 

200

 

 

 

(67,027

)

Pre-tax amount

 

36,101

 

 

 

(8,352

)

 

 

2,276

 

 

 

527

 

 

 

(30

)

 

 

30,522

 

Tax (provision) benefit

 

 

 

 

3,132

 

 

 

(54

)

 

 

(18

)

 

 

 

 

 

3,060

 

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

2,444

 

 

 

(53

)

 

 

(50

)

 

 

2,341

 

Foreign currency translation

 

(23

)

 

 

 

 

 

30

 

 

 

(7

)

 

 

 

 

 

 

Balance at December 31, 2017

 

(36,315

)

 

 

1,046

 

 

 

2,471

 

 

 

1,574

 

 

 

120

 

 

 

(31,104

)

Pre-tax amount

 

(22,158

)

 

 

 

 

 

(4,287

)

 

 

783

 

 

 

 

 

 

(25,662

)

Tax (provision) benefit

 

 

 

 

 

 

 

84

 

 

 

47

 

 

 

 

 

 

131

 

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

6

 

 

 

(66

)

 

 

(80

)

 

 

(140

)

Foreign currency translation

 

220

 

 

 

 

 

 

(138

)

 

 

(82

)

 

 

 

 

 

 

Balance at December 31, 2018

$

(58,253

)

 

$

1,046

 

 

$

(1,864

)

 

$

2,256

 

 

$

40

 

 

$

(56,775

)

 

The following table summarizes the amounts reclassified to net income from accumulated other comprehensive income (loss) and the associated line item in the accompanying Consolidated Statements of Operations (in thousands):

 

 

Years Ended December 31,

 

 

Statements of

Operations

 

2018

 

 

2017

 

 

2016

 

 

Location

Gain (loss) on cash flow hedging

   instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

$

(54

)

 

$

(2,537

)

 

$

(558

)

 

Revenues

Tax (provision) benefit

 

48

 

 

 

93

 

 

 

31

 

 

Income taxes

Reclassification to net income

 

(6

)

 

 

(2,444

)

 

 

(527

)

 

 

Actuarial gain (loss) related to

   pension liability: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

 

58

 

 

 

43

 

 

 

40

 

 

Other income (expense), net

Tax (provision) benefit

 

8

 

 

 

10

 

 

 

12

 

 

Income taxes

Reclassification to net income

 

66

 

 

 

53

 

 

 

52

 

 

 

Gain (loss) on postretirement

   obligation: (2),(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification to net income

 

80

 

 

 

50

 

 

 

58

 

 

Other income (expense), net

 

$

140

 

 

$

(2,341

)

 

$

(417

)

 

 

 

 

(1)

See Note 11, Financial Derivatives, for further information.

 

(2)

See Note 23, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

 

(3)

No related tax (provision) benefit.

As discussed in Note 20, Income Taxes, for periods prior to December 31, 2017, any remaining outside basis differences associated with the Company’s investments in its foreign subsidiaries are considered to be indefinitely reinvested and no provision for income taxes on those earnings or translation adjustments has been provided.

v3.10.0.1
Income Taxes
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

Note 20. Income Taxes

The income before income taxes consists of the following (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Domestic (U.S., state and local)

$

6,971

 

 

$

9,662

 

 

$

34,761

 

Foreign

 

49,946

 

 

 

71,645

 

 

 

54,123

 

 

$

56,917

 

 

$

81,307

 

 

$

88,884

 

 

Significant components of the income tax provision are as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Current:

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

$

(492

)

 

$

29,986

 

 

$

9,514

 

State and local

 

54

 

 

 

855

 

 

 

1,958

 

Foreign

 

9,938

 

 

 

10,342

 

 

 

12,683

 

Total current provision for income taxes

 

9,500

 

 

 

41,183

 

 

 

24,155

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

 

(498

)

 

 

7,919

 

 

 

2,007

 

State and local

 

(85

)

 

 

922

 

 

 

(526

)

Foreign

 

(926

)

 

 

(933

)

 

 

858

 

Total deferred provision (benefit) for income taxes

 

(1,509

)

 

 

7,908

 

 

 

2,339

 

 

$

7,991

 

 

$

49,091

 

 

$

26,494

 

 

The temporary differences that give rise to significant portions of the deferred income tax provision (benefit) are as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Net operating loss and tax credit carryforwards

$

(613

)

 

$

1,231

 

 

$

285

 

Accrued expenses/liabilities

 

(2,512

)

 

 

16,470

 

 

 

1,173

 

Depreciation and amortization

 

101

 

 

 

(10,571

)

 

 

1,286

 

Valuation allowance

 

1,558

 

 

 

(1,441

)

 

 

901

 

Deferred statutory income

 

6

 

 

 

2,479

 

 

 

(1,394

)

Other

 

(49

)

 

 

(260

)

 

 

88

 

 

$

(1,509

)

 

$

7,908

 

 

$

2,339

 

 

The reconciliation of the income tax provision computed at the U.S. federal statutory tax rate to the Company’s effective income tax provision is as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Tax at U.S. federal statutory tax rate

$

11,953

 

 

$

28,457

 

 

$

31,109

 

State income taxes, net of federal tax benefit

 

(31

)

 

 

594

 

 

 

1,432

 

Foreign rate differential

 

(4,620

)

 

 

(14,736

)

 

 

(15,837

)

Tax holidays

 

(4,050

)

 

 

(2,951

)

 

 

(3,314

)

Permanent differences

 

12,150

 

 

 

8,749

 

 

 

12,768

 

Tax credits

 

(8,979

)

 

 

(5,102

)

 

 

(4,396

)

Foreign withholding and other taxes

 

(840

)

 

 

2,661

 

 

 

2,667

 

Valuation allowance

 

1,549

 

 

 

(1,689

)

 

 

994

 

Uncertain tax positions

 

771

 

 

 

(1,812

)

 

 

398

 

Statutory tax rate changes

 

96

 

 

 

2,536

 

 

 

242

 

2017 Tax Reform Act

 

(217

)

 

 

32,705

 

 

 

 

Other

 

209

 

 

 

(321

)

 

 

431

 

Total provision for income taxes

$

7,991

 

 

$

49,091

 

 

$

26,494

 

 

Withholding taxes on offshore cash movements assessed by certain foreign governments of $2.0 million, $1.7 million and $2.0 million were included in the provision for income taxes in the accompanying Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016, respectively.

On December 22, 2017, the 2017 Tax Reform Act was signed into law making significant changes to the Internal Revenue Code. Changes included, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a participation exemption regime, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. We estimated our provision for income taxes in accordance with the 2017 Tax Reform Act and guidance available upon enactment and as a result recorded $32.7 million as additional income tax expense in the fourth quarter of 2017, the period in which the legislation was enacted. The $32.7 million estimate included the provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings of $32.7 million based on cumulative foreign earnings of $531.8 million and $1.0 million of foreign withholding taxes on certain anticipated distributions.  The provisional tax expense was partially offset by a provisional benefit of $1.0 million related to the remeasurement of certain deferred tax assets and liabilities, based on the rates at which they are expected to reverse in the future. The Company recorded a $0.2 million decrease to the provisional amounts during the year ended December 31, 2018 upon finalizing the impact of the 2017 Tax Reform Act.

The Company provides U.S. income taxes on the earnings of foreign subsidiaries unless they are exempted from taxation as a result of the new territorial tax system. No additional income taxes have been provided for any remaining outside basis difference inherent in these entities as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any remaining outside basis difference in these entities is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates.

On December 22, 2017, the SEC issued SAB 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Reform Act. In accordance with SAB 118, we have determined that the deferred tax benefit recorded in connection with the remeasurement of certain deferred tax assets and liabilities and the current tax expense recorded in connection with the transition tax on the mandatory deemed repatriation of foreign earnings was a provisional amount and a reasonable estimate at December 31, 2017. Final computations were completed during the fourth quarter of 2018, resulting in the $0.2 million decrease to the provisional amount discussed above.

The 2017 Tax Reform Act instituted a number of new provisions effective January 1, 2018, including GILTI, Foreign Derived Intangible Income (“FDII”) and Base Erosion and Anti-Abuse Tax (“BEAT”).  Based on the guidance, interpretations, and data available as of December 31, 2018, the Company has determined the impact of these measures is immaterial to its tax provision in 2018.

The Company has been granted tax holidays in the Philippines, Colombia, Costa Rica and El Salvador. The tax holidays have various expiration dates ranging from 2019 through 2028. In some cases, the tax holidays expire without possibility of renewal. In other cases, the Company expects to renew these tax holidays, but there are no assurances from the respective foreign governments that they will renew them. This could potentially result in future adverse tax consequences in the local jurisdiction, the impact of which is not practicable to estimate due to the inherent complexity of estimating critical variables such as long-term future profitability, tax regulations and rates in the multi-national tax environment in which the Company operates.  The Company’s tax holidays decreased the provision for income taxes by $4.1 million ($0.10 per diluted share), $3.0 million ($0.07 per diluted share) and $3.3 million ($0.08 per diluted share) for the years ended December 31, 2018, 2017 and 2016, respectively.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income taxes.  The temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Deferred tax assets:

 

 

 

 

 

 

 

Net operating loss and tax credit carryforwards

$

34,565

 

 

$

33,803

 

Valuation allowance

 

(32,299

)

 

 

(32,443

)

Accrued expenses

 

9,500

 

 

 

9,938

 

Deferred revenue and customer liabilities

 

4,138

 

 

 

4,544

 

Depreciation and amortization

 

1,693

 

 

 

1,628

 

Other

 

413

 

 

 

229

 

 

 

18,010

 

 

 

17,699

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Depreciation and amortization

 

(13,199

)

 

 

(12,999

)

Deferred statutory income

 

(838

)

 

 

(938

)

Accrued liabilities

 

(1,779

)

 

 

(2,849

)

Other

 

(253

)

 

 

(258

)

 

 

(16,069

)

 

 

(17,044

)

Net deferred tax assets

$

1,941

 

 

$

655

 

 

 

December 31,

 

 

2018

 

 

2017

 

Classified as follows:

 

 

 

 

 

 

 

Deferred charges and other assets (Note 14)

$

5,797

 

 

$

6,657

 

Other long-term liabilities

 

(3,856

)

 

 

(6,002

)

Net deferred tax assets

$

1,941

 

 

$

655

 

 

There are approximately $154.2 million of income tax loss carryforwards as of December 31, 2018, with varying expiration dates, approximately $123.8 million relating to foreign operations and $30.4 million relating to U.S. state operations. With respect to foreign operations, $93.9 million of the net operating loss carryforwards have an indefinite expiration date and the remaining $22.7 million net operating loss carryforwards have varying expiration dates through December 2039.  Regarding the foreign and U.S. state aforementioned tax loss carryforwards, no benefit has been recognized for $116.6 million and $24.0 million, respectively, as the Company does not anticipate that the losses will more likely than not be fully utilized.

The Company has accrued $2.7 million and $1.3 million as of December 31, 2018 and 2017, respectively, excluding penalties and interest, for the liability for unrecognized tax benefits. The $2.7 million and $1.3 million of the unrecognized tax benefits at December 31, 2018 and 2017, respectively, were recorded in “Long-term income tax liabilities” in the accompanying Consolidated Balance Sheets.  Had the Company recognized these tax benefits, approximately $2.7 million and $1.3 million, and the related interest and penalties, would have favorably impacted the effective tax rate in 2018 and 2017, respectively. The Company does not anticipate that any of the unrecognized tax benefits will be recognized in the next twelve months.

The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company had $0.6 million and $1.3 million accrued for interest and penalties as of December 31, 2018 and 2017, respectively. Of the accrued interest and penalties at December 31, 2018 and 2017, $0.4 million and $0.8 million, respectively, relate to statutory penalties. The amount of interest and penalties, net, included in the provision for income taxes in the accompanying Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016 was $0.7 million, $(9.5) million and $0.4 million, respectively.

The tabular reconciliation of the amounts of unrecognized net tax benefits is presented below (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Balance at the beginning of the period

$

1,342

 

 

$

8,531

 

 

$

8,116

 

Current period tax position increases

 

2,950

 

 

 

 

 

 

 

Decreases from settlements with tax authorities

 

(191

)

 

 

(10,865

)

 

 

 

Decreases due to lapse in applicable statute of limitations

 

(1,310

)

 

 

(466

)

 

 

 

Foreign currency translation increases (decreases)

 

(71

)

 

 

4,142

 

 

 

415

 

Balance at the end of the period

$

2,720

 

 

$

1,342

 

 

$

8,531

 

 

The Company received assessments for the Canadian 2003-2009 audit. Requests for Competent Authority Assistance were filed with both the Canadian Revenue Agency and the U.S. Internal Revenue Service and the Company paid mandatory security deposits to Canada as part of this process.  As of June 30, 2017, the Company determined that all material aspects of the Canadian audit were effectively settled pursuant to ASC 740. As a result, the Company recognized an income tax benefit of $1.2 million, net of the U.S. tax impact, at that time and the deposits were applied against the anticipated liability. During the year ended December 31, 2018, the Company finalized procedures ancillary to the Canadian audit and recognized an additional $2.8 million income tax benefit due to the elimination of certain assessed penalties, interest and withholding taxes.

With the effective settlement of the Canadian audit, the Company has no significant tax jurisdictions under audit; however, the Company is currently under audit in several tax jurisdictions.  The Company believes it is adequately reserved for the remaining audits and their resolution is not expected to have a material impact on its financial conditions and results of operations.

The Company and its subsidiaries file federal, state and local income tax returns as required in the U.S. and in various foreign tax jurisdictions. The major tax jurisdictions and tax years that are open and subject to examination by the respective tax authorities as of December 31, 2018 are tax years 2015 through 2018 for the U.S.

v3.10.0.1
Earnings Per Share
12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Earnings Per Share

Note 21. Earnings Per Share

Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust using the treasury stock method.

The numbers of shares used in the earnings per share computation are as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

42,090

 

 

 

41,822

 

 

 

41,847

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of stock appreciation rights, restricted

   stock, restricted stock units and shares held in

   rabbi trust

 

156

 

 

 

319

 

 

 

392

 

Total weighted average diluted shares outstanding

 

42,246

 

 

 

42,141

 

 

 

42,239

 

Anti-dilutive shares excluded from the diluted earnings

   per share calculation

 

44

 

 

 

46

 

 

 

20

 

 

On August 18, 2011, the Company’s Board of Directors (the “Board”) authorized the Company to purchase up to 5.0 million shares of its outstanding common stock (the “2011 Share Repurchase Program”). On March 16, 2016, the Board authorized an increase of 5.0 million shares to the 2011 Share Repurchase Program for a total of 10.0 million shares.  A total of 5.3 million shares have been repurchased under the 2011 Share Repurchase Program since inception. The shares are purchased, from time to time, through open market purchases or in negotiated private transactions, and the purchases are based on factors, including but not limited to, the stock price, management discretion and general market conditions. The 2011 Share Repurchase Program has no expiration date.  

The shares repurchased under the Company’s share repurchase programs were as follows (none in 2018 and 2017) (in thousands, except per share amounts):

 

 

Total Number of Shares

 

 

Range of Prices Paid Per Share

 

 

Total Cost of Shares

 

For the Year Ended

Repurchased

 

 

Low

 

 

High

 

 

Repurchased

 

December 31, 2016

 

390

 

 

$

27.81

 

 

$

30.00

 

 

$

11,144

 

 

v3.10.0.1
Commitments and Loss Contingency
12 Months Ended
Dec. 31, 2018
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Loss Contingency

Note 22. Commitments and Loss Contingency

Lease and Purchase Commitments

The Company leases certain equipment and buildings under operating leases, which expire at various dates through 2035, many with options to cancel at varying points during the lease. Fair value renewal and escalation clauses exist for many of the operating leases. Rental expense, primarily included in “General and administrative” in the accompanying Consolidated Statements of Operations, under operating leases was as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Rental expense

$

67,980

 

 

$

59,906

 

 

$

55,584

 

 

The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of December 31, 2018 (in thousands):

 

 

Amount

 

2019

$

53,071

 

2020

 

48,770

 

2021

 

43,324

 

2022

 

34,063

 

2023

 

22,583

 

2024 and thereafter

 

51,456

 

 

$

253,267

 

 

The Company enters into agreements with third-party vendors in the ordinary course of business whereby the Company commits to purchase goods and services used in its normal operations. These agreements generally are not cancelable, range from one to five-year periods and may contain fixed or minimum annual commitments. Certain of these agreements allow for renegotiation of the minimum annual commitments based on certain conditions.

The following is a schedule of future minimum purchases remaining under the agreements as of December 31, 2018 (in thousands):

 

 

Amount

 

2019

$

61,281

 

2020

 

16,308

 

2021

 

2,216

 

2022

 

1,021

 

2023

 

525

 

2024 and thereafter

 

 

 

$

81,351

 

 

Indemnities, Commitments and Guarantees

From time to time, during the normal course of business, the Company may make certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These include but are not limited to: (i) indemnities to clients, vendors and service providers pertaining to claims based on negligence or willful misconduct of the Company and (ii) indemnities involving breach of contract, the accuracy of representations and warranties of the Company, or other liabilities assumed by the Company in certain contracts. In addition, the Company has agreements whereby it will indemnify certain officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The indemnification period covers all pertinent events and occurrences during the officer’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has director and officer insurance coverage that limits its exposure and enables it to recover a portion of any future amounts paid. The Company believes the applicable insurance coverage is generally adequate to cover any estimated potential liability under these indemnification agreements. The majority of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities, commitments and guarantees in the accompanying Consolidated Balance Sheets.  In addition, the Company has some client contracts that do not contain contractual provisions for the limitation of liability, and other client contracts that contain agreed upon exceptions to limitation of liability.  The Company has not recorded any liability in the accompanying Consolidated Balance Sheets with respect to any client contracts under which the Company has or may have unlimited liability.

Loss Contingency

Contingencies are recorded in the consolidated financial statements when it is probable that a liability will be incurred, and the amount of the loss is reasonably estimable, or otherwise disclosed, in accordance with ASC 450, Contingencies (“ASC 450”). Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450.

The Company received a state audit assessment and is currently rebutting the position. The Company has determined that the likelihood of a liability is reasonably possible and developed a range of possible loss up to $1.2 million, net of federal benefit.

The Company, from time to time, is involved in legal actions arising in the ordinary course of business.

On August 24, 2017, a collective action lawsuit was filed against the Company in the United States District Court for the District of Colorado (the “Court”), Slaughter v. Sykes Enterprises, Inc., Case No. 17 Civ. 2038. The lawsuit claimed that the Company failed to pay certain employees overtime compensation for the hours they worked over forty in a workweek, as required by the Fair Labor Standards Act.  On October 17, 2018, the parties entered into a verbal agreement to fully resolve all claims and the fees for the plaintiffs’ attorneys for a total payment of $1.2 million. The settlement agreement was approved by the Court and a charge of $1.2 million was included in “General and administrative” in the accompanying Consolidated Statement of Operations for the year ended December 31, 2018.  The settlement of $1.2 million was paid on December 31, 2018.

With respect to any such other currently pending matters, management believes that the Company has adequate legal defenses and/or, when possible and appropriate, has provided adequate accruals related to those matters such that the ultimate outcome will not have a material adverse effect on the Company’s financial position, results of operations or cash flows.

v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits
12 Months Ended
Dec. 31, 2018
Compensation And Retirement Disclosure [Abstract]  
Defined Benefit Pension Plan and Postretirement Benefits

Note 23. Defined Benefit Pension Plan and Postretirement Benefits

Defined Benefit Pension Plans

The Company sponsors non-contributory defined benefit pension plans (the “Pension Plans”) for its covered employees in the Philippines. The Pension Plans provide defined benefits based on years of service and final salary. All permanent employees meeting the minimum service requirement are eligible to participate in the Pension Plans. As of December 31, 2018, the Pension Plans were unfunded. The Company expects to make no cash contributions to its Pension Plans during 2019.

The following table provides a reconciliation of the change in the benefit obligation for the Pension Plans and the net amount recognized, included in “Other long-term liabilities,” in the accompanying Consolidated Balance Sheets (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Balance at the beginning of the period

$

3,642

 

 

$

3,551

 

Service cost

 

448

 

 

 

443

 

Interest cost

 

196

 

 

 

194

 

Actuarial (gains) losses

 

(783

)

 

 

(521

)

Benefits paid

 

(32

)

 

 

(3

)

Effect of foreign currency translation

 

(189

)

 

 

(22

)

Balance at the end of the period

$

3,282

 

 

$

3,642

 

 

 

 

 

 

 

 

 

Unfunded status

 

(3,282

)

 

 

(3,642

)

Net amount recognized

$

(3,282

)

 

$

(3,642

)

The actuarial assumptions used to determine the benefit obligations and net periodic benefit cost for the Pension Plans were as follows:

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Discount rate

7.4-7.5%

 

 

5.5-5.6%

 

 

5.5-5.6%

 

Rate of compensation increase

 

2.0

%

 

 

2.0

%

 

 

2.0

%

 

The Company evaluates these assumptions on a periodic basis taking into consideration current market conditions and historical market data. The discount rate is used to calculate expected future cash flows at a present value on the measurement date, which is December 31. This rate represents the market rate for high-quality fixed income investments. A lower discount rate would increase the present value of benefit obligations. Other assumptions include demographic factors such as retirement, mortality and turnover.

 

The following table provides information about the net periodic benefit cost and other accumulated comprehensive income for the Pension Plans (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Service cost

$

448

 

 

$

443

 

 

$

443

 

Interest cost

 

196

 

 

 

194

 

 

 

165

 

Recognized actuarial (gains)

 

(58

)

 

 

(43

)

 

 

(40

)

Net periodic benefit cost

 

586

 

 

 

594

 

 

 

568

 

Unrealized net actuarial (gains), net of tax

 

(2,256

)

 

 

(1,574

)

 

 

(1,126

)

Total amount recognized in net periodic benefit cost and

   accumulated other comprehensive income (loss)

$

(1,670

)

 

$

(980

)

 

$

(558

)

 

The Company’s service cost for its qualified pension plans was included in “Direct salaries and related costs” and “General and administrative” costs in its Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016. The remaining components of net periodic benefit cost were included in “Other income (expense), net” in the Company’s Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016.  See Note 1, Overview and Summary of Significant Accounting Policies, for further information related to the adoption of ASU 2016-18.

The estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands):

 

Years Ending December 31,

Amount

 

2019

$

331

 

2020

 

109

 

2021

 

108

 

2022

 

94

 

2023

 

130

 

2024 - 2028

 

1,035

 

 

The Company expects to recognize $0.1 million of net actuarial gains as a component of net periodic benefit cost in 2019.

Employee Retirement Savings Plans

The Company maintains a 401(k) plan covering defined employees who meet established eligibility requirements. Under the plan provisions, the Company matches 50% of participant contributions to a maximum matching amount of 2% of participant compensation. The Company’s contributions included in the accompanying Consolidated Statements of Operations were as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

401(k) plan contributions

$

1,612

 

 

$

1,502

 

 

$

969

 

 

Split-Dollar Life Insurance Arrangement

In 1996, the Company entered into a split-dollar life insurance arrangement to benefit the former Chairman and Chief Executive Officer of the Company. Under the terms of the arrangement, the Company retained a collateral interest in the policy to the extent of the premiums paid by the Company. The postretirement benefit obligation included in “Other long-term liabilities” and the unrealized gains (losses) included in “Accumulated other comprehensive income” in the accompanying Consolidated Balance Sheets were as follows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Postretirement benefit obligation

$

12

 

 

$

15

 

Unrealized gains (losses) in AOCI (1)

 

40

 

 

 

120

 

 

(1) Unrealized gains (losses) are due to changes in discount rates related to the postretirement obligation.

Post-Retirement Defined Contribution Healthcare Plan

On January 1, 2005, the Company established a Post-Retirement Defined Contribution Healthcare Plan for eligible employees meeting certain service and age requirements. The plan is fully funded by the participants and accordingly, the Company does not recognize expense relating to the plan.

v3.10.0.1
Stock-Based Compensation
12 Months Ended
Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

Note 24. Stock-Based Compensation

The Company’s stock-based compensation plans include the 2011 Equity Incentive Plan, the Non-Employee Director Fee Plan and the Deferred Compensation Plan. The following table summarizes the stock-based compensation expense (primarily in the Americas), income tax benefits related to the stock-based compensation and excess tax benefits for all grants of stock-based compensation, both plan related and non-plan related (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Stock-based compensation (expense) (1)

 

$

(7,543

)

 

$

(7,621

)

 

$

(10,779

)

Income tax benefit (2)

 

 

1,810

 

 

 

2,858

 

 

 

4,150

 

Excess tax benefit from stock-based compensation (3)

 

 

 

 

 

 

 

 

2,098

 

 

 

(1)

Included in "General and administrative" costs in the accompanying Consolidated Statements of Operations.

 

(2)

Included in "Income taxes" in the accompanying Consolidated Statements of Operations.

 

(3)

Included in "Additional paid-in capital" in the accompanying Consolidated Statements of Changes in Shareholders' Equity.

There were no capitalized stock-based compensation costs as of December 31, 2018, 2017 and 2016.

Beginning January 1, 2017, as a result of the adoption of ASU 2016-09, Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), the Company began accounting for forfeitures as they occur, rather than estimating expected forfeitures. The net cumulative effect of this change was recognized as a $0.2 million reduction to retained earnings as of January 1, 2017.  Additionally, excess tax benefits (deficiencies) from stock compensation are included in “Income taxes” in the accompanying Consolidated Statements of Operations subsequent to the adoption of ASU 2016-09.

2011 Equity Incentive Plan The Company’s Board adopted the Sykes Enterprises, Incorporated 2011 Equity Incentive Plan (the "2011 Plan”) on March 23, 2011, as amended on May 11, 2011 to reduce the number of shares of common stock available to 4.0 million shares.  The 2011 Plan was approved by the shareholders at the May 2011 annual shareholders meeting.  The 2011 Plan replaced and superseded the Company’s 2001 Equity Incentive Plan (the “2001 Plan”), which expired on March 14, 2011. The outstanding awards granted under the 2001 Plan will remain in effect until their exercise, expiration or termination. The 2011 Plan permits the grant of restricted stock, stock appreciation rights, stock options and other stock-based awards to certain employees of the Company, members of the Company’s Board of Directors and certain non-employees who provide services to the Company in order to encourage them to remain in the employment of, or to faithfully provide services to, the Company and to increase their interest in the Company’s success.  

Stock Appreciation Rights The Board, at the recommendation of the Compensation and Human Resources Development Committee (the “Compensation Committee”), has approved in the past, and may approve in the future, awards of stock-settled stock appreciation rights (“SARs”) for eligible participants. SARs represent the right to receive, without payment to the Company, a certain number of shares of common stock, as determined by the Compensation Committee, equal to the amount by which the fair market value of a share of common stock at the time of exercise exceeds the grant price.

The SARs are granted at the fair market value of the Company’s common stock on the date of the grant and vest one-third on March 15th in each of the first three years following the date of grant, provided the participant is employed by the Company on such date. The SARs have a term of 10 years from the date of grant.  In the event of a change in control, the SARs will vest on the date of the change in control, provided that the participant is employed by the Company on the date of the change in control.

All currently outstanding SARs are exercisable within three months after the death, disability, retirement or termination of the participant’s employment with the Company, if and to the extent the SARs were exercisable immediately prior to such termination.  If the participant’s employment is terminated for cause, or the participant terminates his or her own employment with the Company, any portion of the SARs not yet exercised (whether or not vested) terminates immediately on the date of termination of employment.

The fair value of each SAR is estimated on the date of grant using the Black-Scholes valuation model that uses various assumptions. The fair value of the SARs is expensed on a straight-line basis over the requisite service period. Expected volatility is based on the historical volatility of the Company’s stock. The risk-free rate for periods within the contractual life of the award is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturity equal to the expected term of the award. Exercises and forfeitures are estimated within the valuation model using employee termination and other historical data. The expected term of the SARs granted represents the period of time the SARs are expected to be outstanding.

The following table summarizes the assumptions used to estimate the fair value of SARs granted:

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Expected volatility

 

 

21.4

%

 

 

19.3

%

 

 

25.3

%

Weighted-average volatility

 

 

21.4

%

 

 

19.3

%

 

 

25.3

%

Expected dividend rate

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Expected term (in years)

 

 

5.0

 

 

 

5.0

 

 

 

5.0

 

Risk-free rate

 

 

2.5

%

 

 

1.9

%

 

 

1.5

%

 

The following table summarizes SARs activity as of December 31, 2018 and for the year then ended:

 

Stock Appreciation Rights

 

Shares (000s)

 

 

Weighted Average Exercise Price

 

 

Weighted Average Remaining Contractual Term (in years)

 

 

Aggregate Intrinsic Value (000s)

 

Balance at the beginning of the period

 

 

734

 

 

$

 

 

 

 

 

 

 

 

 

Granted

 

 

333

 

 

$

 

 

 

 

 

 

 

 

 

Exercised

 

 

(62

)

 

$

 

 

 

 

 

 

 

 

 

Forfeited or expired

 

 

(43

)

 

$

 

 

 

 

 

 

 

 

 

Balance at the end of the period

 

 

962

 

 

$

 

 

 

8.1

 

 

$

167

 

Vested or expected to vest at the end of the period

 

 

962

 

 

$

 

 

 

8.1

 

 

$

167

 

Exercisable at the end of the period

 

 

344

 

 

$

 

 

 

7.0

 

 

$

167

 

 

The following table summarizes information regarding SARs granted and exercised (in thousands, except per SAR amounts):

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Number of SARs granted

 

 

333

 

 

 

396

 

 

 

323

 

Weighted average grant-date fair value per SAR

 

$

6.84

 

 

$

6.24

 

 

$

7.68

 

Intrinsic value of SARs exercised

 

$

320

 

 

$

1,763

 

 

$

1,691

 

Fair value of SARs vested

 

$

1,950

 

 

$

1,846

 

 

$

1,520

 

 

The following table summarizes nonvested SARs activity as of December 31, 2018 and for the year then ended:

 

Nonvested Stock Appreciation Rights

 

Shares (000s)

 

 

Weighted Average Grant-Date Fair Value

 

Balance at the beginning of the period

 

 

600

 

 

$

6.88

 

Granted

 

 

333

 

 

$

6.84

 

Vested

 

 

(272

)

 

$

7.16

 

Forfeited or expired

 

 

(43

)

 

$

6.75

 

Balance at the end of the period

 

 

618

 

 

$

6.74

 

As of December 31, 2018, there was $2.6 million of total unrecognized compensation cost, net of actual forfeitures, related to nonvested SARs granted under the 2011 Plan. This cost is expected to be recognized over a weighted average period of 1.8 years.

Restricted SharesThe Board, at the recommendation of the Compensation Committee, has approved in the past, and may approve in the future, awards of performance and employment-based restricted shares (“restricted shares”) for eligible participants. In some instances, where the issuance of restricted shares has adverse tax consequences to the recipient, the Board may instead issue RSUs.  The restricted shares are shares of the Company’s common stock (or in the case of RSUs, represent an equivalent number of shares of the Company’s common stock) which are issued to the participant subject to (a) restrictions on transfer for a period of time and (b) forfeiture under certain conditions.  The performance goals, including revenue growth and income from operations targets, provide a range of vesting possibilities from 0% to 100% and will be measured at the end of the performance period. If the performance conditions are met for the performance period, the shares will vest and all restrictions on the transfer of the restricted shares will lapse (or in the case of RSUs, an equivalent number of shares of the Company’s common stock will be issued to the recipient). The Company recognizes compensation cost, net of actual forfeitures, based on the fair value (which approximates the current market price) of the restricted shares (and RSUs) on the date of grant ratably over the requisite service period based on the probability of achieving the performance goals.

Changes in the probability of achieving the performance goals from period to period will result in corresponding changes in compensation expense. The employment-based restricted shares currently outstanding vest one-third on March 15th in each of the first three years following the date of grant, provided the participant is employed by the Company on such date. In the event of a change in control prior to the date the restricted shares vest, all of the restricted shares will vest and the restrictions on transfer will lapse with respect to such vested shares on the date of the change in control, provided that participant is employed by the Company on the date of the change in control.

If the participant’s employment with the Company is terminated for any reason, either by the Company or participant, prior to the date on which the restricted shares have vested and the restrictions have lapsed with respect to such vested shares, any restricted shares remaining subject to the restrictions (together with any dividends paid thereon) will be forfeited, unless there has been a change in control prior to such date.  

The following table summarizes nonvested restricted shares/RSUs activity as of December 31, 2018 and for the year then ended:

 

Nonvested Restricted Shares and RSUs

 

Shares (000s)

 

 

Weighted Average Grant-Date Fair Value

 

Balance at the beginning of the period

 

 

1,109

 

 

$

28.50

 

Granted

 

 

492

 

 

$

28.16

 

Vested

 

 

(323

)

 

$

25.78

 

Forfeited or expired

 

 

(134

)

 

$

28.23

 

Balance at the end of the period

 

 

1,144

 

 

$

29.15

 

 

The following table summarizes information regarding restricted shares/RSUs granted and vested (in thousands, except per restricted share/RSU amounts):

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Number of restricted shares/RSUs granted

 

 

492

 

 

 

480

 

 

 

451

 

Weighted average grant-date fair value per restricted share/RSU

 

$

28.16

 

 

$

29.42

 

 

$

30.32

 

Fair value of restricted shares/RSUs vested

 

$

8,342

 

 

$

6,868

 

 

$

6,785

 

 

As of December 31, 2018, based on the probability of achieving the performance goals, there was $6.8 million of total unrecognized compensation cost, net of actual forfeitures, related to nonvested restricted shares/RSUs granted under the 2011 Plan. This cost is expected to be recognized over a weighted average period of 1.4 years.

Non-Employee Director Fee Plan The Company’s 2004 Non-Employee Director Fee Plan (the “2004 Fee Plan”), as amended on May 17, 2012, expired in May 2014, prior to the 2014 annual shareholders’ meeting. In March 2014, upon the recommendation of the Compensation Committee, the Board determined that, following the expiration of the 2004 Fee Plan, the compensation of non-employee directors should continue on the same terms as provided in the May 2012 amendment, except the amounts of cash and equity grants would be determined annually by the Board, and that the stock portion of such compensation would be issued under the 2011 Plan.

All new non-employee directors joining the Board receive an initial grant of shares of common stock on the date the new director is elected or appointed, the number of which is determined by dividing $60,000 by the closing price of the Company’s common stock on the trading day immediately preceding the date a new director is elected or appointed, rounded to the nearest whole number of shares.  The initial grant of shares vests in twelve equal quarterly installments, one-twelfth on the date of grant and an additional one-twelfth on each successive third monthly anniversary of the date of grant.  The award lapses with respect to all unvested shares in the event the non-employee director ceases to be a director of the Company, and any unvested shares are forfeited.

Each non-employee director receives, on the day after the annual shareholders meeting, an annual retainer for service as a non-employee director (the “Annual Retainer”). Beginning in 2015, the total value of the Annual Retainer was $155,000, of which $55,000 was payable in cash, and the remainder paid in stock, the amount of which was determined by dividing $100,000 by the closing price of the Company’s common stock on the date of the annual shareholders’ meeting. At the Board’s regularly scheduled meeting on December 6, 2016, upon the recommendation of the Compensation Committee, the Board determined that the amount of the cash compensation payable to non-employee directors beginning on the date of the 2017 annual shareholders’ meeting would be increased by $15,000 per year to a total of $70,000.  Accordingly, the annual cash and equity compensation for non-employee directors is currently $170,000, of which $70,000 is payable in cash, and the remainder is paid in stock.  The annual grant of cash vests in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant. The annual grant of shares paid to non-employee directors vests in four equal quarterly installments, one-fourth on the date of grant and an additional one-fourth on each successive third monthly anniversary of the date of grant). The award lapses with respect to all unpaid cash and unvested shares in the event the non-employee director ceases to be a director of the Company, and any unvested shares and unpaid cash are forfeited.

In addition to the Annual Retainer, any non-employee Chairman of the Board receives an additional annual cash award of $100,000, and each non-employee director serving on a committee of the Board receives an additional annual cash award. The additional annual cash award for the Chairperson of the Audit Committee is $20,000 and Audit Committee members are entitled to an annual cash award of $10,000.  The annual cash awards for the Chairpersons of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee are $15,000, $12,500 and $12,500, respectively, and all other members of such committees are entitled to an annual cash award of $7,500.

The Board may pay additional cash compensation to any non-employee director for services on behalf of the Board over and above those typically expected of directors, including but not limited to service on a special committee of the Board.

The following table summarizes nonvested common stock share award activity as of December 31, 2018 and for the year then ended:

 

Nonvested Common Stock Share Awards

 

Shares (000s)

 

 

Weighted Average Grant-Date Fair Value

 

Balance at the beginning of the period

 

 

8

 

 

$

32.21

 

Granted

 

 

34

 

 

$

27.68

 

Vested

 

 

(31

)

 

$

28.80

 

Forfeited or expired

 

 

(2

)

 

$

27.68

 

Balance at the end of the period

 

 

9

 

 

$

27.72

 

 

The following table summarizes information regarding common stock share awards granted and vested (in thousands, except per share award amounts):

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Number of share awards granted

 

 

34

 

 

 

24

 

 

 

32

 

Weighted average grant-date fair value per share award

 

$

27.68

 

 

$

32.93

 

 

$

29.04

 

Fair value of share awards vested

 

$

880

 

 

$

850

 

 

$

850

 

 

As of December 31, 2018, there was $0.2 million of total unrecognized compensation costs, net of actual forfeitures, related to nonvested common stock share awards granted. This cost is expected to be recognized over a weighted average period of 0.7 years.

Deferred Compensation Plan The Company’s non-qualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which is not shareholder-approved, was adopted by the Board effective December 17, 1998.  It was last amended and restated on August 15, 2017, effective January 1, 2018.  Eligibility is limited to a select group of key management and employees who are expected to receive an annualized base salary (which will not take into account bonuses or commissions) that exceeds the amount taken into account for purposes of determining highly compensated employees under Section 414(q) of the Internal Revenue Code of 1986 based on the current year’s base salary and applicable dollar amounts.  The Deferred Compensation Plan provides participants with the ability to defer between 1% and 80% of their compensation (between 1% and 100% prior to June 30, 2016, the effective date of the first amendment) until the participant’s retirement, termination, disability or death, or a change in control of the Company. Using the Company’s common stock, the Company matches 50% of the amounts deferred by participants on a quarterly basis up to a total of $12,000 per year for the president, chief executive officer and executive vice presidents, $7,500 per year for senior vice presidents, global vice presidents and vice presidents, and, effective January 1, 2017, $5,000 per year for all other participants (there was no match for other participants prior to January 1, 2017, the effective date of the second amendment).  Matching contributions and the associated earnings vest over a seven-year service period. Vesting will be accelerated in the event of the participant’s death or disability, a change in control or retirement.  In the event of a distribution of benefits resulting from a change in control of the Company, the Company will increase the benefit by an amount sufficient to offset the income tax obligations created by the distribution of benefits. Deferred compensation amounts used to pay benefits, which are held in a rabbi trust, include investments in various mutual funds and shares of the Company’s common stock (see Note 11, Investments Held in Rabbi Trust).  

As of December 31, 2018 and 2017, liabilities of $11.4 million and $11.6 million, respectively, of the Deferred Compensation Plan were recorded in “Accrued employee compensation and benefits” in the accompanying Consolidated Balance Sheets. Additionally, the Company’s common stock match associated with the Deferred Compensation Plan, with a carrying value of approximately $2.4 million and $2.1 million at December 31, 2018 and 2017, respectively, is included in “Treasury stock” in the accompanying Consolidated Balance Sheets.

The following table summarizes nonvested common stock activity as of December 31, 2018 and for the year then ended:

 

Nonvested Common Stock

 

Shares (000s)

 

 

Weighted Average Grant-Date Fair Value

 

Balance at the beginning of the period

 

 

3

 

 

$

29.56

 

Granted

 

 

16

 

 

$

28.48

 

Vested

 

 

(11

)

 

$

28.41

 

Forfeited or expired

 

 

 

 

$

 

Balance at the end of the period

 

 

8

 

 

$

29.01

 

 

The following table summarizes information regarding shares of common stock granted and vested (in thousands, except per common stock amounts):

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Number of shares of common stock granted

 

 

16

 

 

 

13

 

 

 

8

 

Weighted average grant-date fair value per common stock

 

$

28.48

 

 

$

30.49

 

 

$

29.36

 

Fair value of common stock vested

 

$

315

 

 

$

334

 

 

$

255

 

Cash used to settle the obligation

 

$

804

 

 

$

1,134

 

 

$

396

 

 

As of December 31, 2018, there was $0.2 million of total unrecognized compensation cost, net of actual forfeitures, related to nonvested common stock granted under the Deferred Compensation Plan. This cost is expected to be recognized over a weighted average period of 4.5 years.

Acquisition-Related Restricted Shares – In conjunction with the Company’s acquisition of Symphony on November 1, 2018, the Company granted RSUs to certain of Symphony’s owners. These RSUs were issued from the Company’s pool of authorized but unissued common stock.  See Note 3, Acquisitions, for further information.

The Company recognizes compensation cost, net of actual forfeitures, based on the fair value (which approximates the current market price) of the RSUs on the date of grant ratably over the requisite service period. The RSUs vest one-half on and after each of May 1, 2020 and November 1, 2021, provided the participant is employed by the Company on such date. In the event of a change in control prior to the date the RSUs vest, all of the RSUs will vest and the restrictions on transfer will lapse with respect to such vested shares on the date of the change in control, provided that participant is employed by the Company on the date of the change in control.

If the participant’s employment with the Company is terminated for any reason, either by the Company or participant, prior to the date on which the RSUs have vested and the restrictions have lapsed with respect to such vested shares, any RSUs remaining subject to the restrictions (together with any dividends paid thereon) will be forfeited, unless there has been a change in control prior to such date.  

The following table summarizes nonvested acquisition-related RSUs activity as of December 31, 2018 and for the year then ended:

Nonvested Restricted Shares and RSUs

 

Shares (000s)

 

 

Weighted Average Grant-Date Fair Value

 

Balance at the beginning of the period

 

 

 

 

$

 

Granted

 

 

124

 

 

$

30.67

 

Vested

 

 

 

 

$

 

Forfeited or expired

 

 

 

 

$

 

Balance at the end of the period

 

 

124

 

 

$

30.67

 

The following table summarizes information regarding acquisition-related RSUs granted and vested (in thousands, except per restricted share/RSU amounts):

 

 

Year Ended December 31, 2018

 

Number of restricted shares/RSUs granted

 

 

124

 

Weighted average grant-date fair value per restricted share/RSU

 

$

30.67

 

Fair value of restricted shares/RSUs vested

 

$

 

As of December 31, 2018, there was $3.6 million of total unrecognized compensation cost, net of actual forfeitures, related to nonvested acquisition-related RSUs. This cost is expected to be recognized over a weighted average period of 2.8 years.

v3.10.0.1
Segments and Geographic Information
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segments and Geographic Information

Note 25. Segments and Geographic Information

The Company operates within two regions, the Americas and EMEA. Each region represents a reportable segment comprised of aggregated regional operating segments, which portray similar economic characteristics. The Company aligns its business into two segments to effectively manage the business and support the customer care needs of every client and to respond to the demands of the Company’s global customers.

The reportable segments consist of (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, and provides outsourced customer engagement solutions (with an emphasis on inbound multichannel demand generation, customer service and technical support) and technical staffing, and (2) EMEA, which includes Europe, the Middle East and Africa, and provides outsourced customer engagement solutions (with an emphasis on technical support and customer service) and fulfillment services. The Company also provides a suite of solutions such as RPA consulting, implementation, hosting and managed services that optimizes its differentiated full lifecycle management services platform. The sites within Latin America, Australia and the Asia Pacific Rim are included in the Americas segment given the nature of the business and client profile, which is primarily made up of U.S.-based companies that are using the Company’s services in these locations to support their customer engagement needs.

Information about the Company’s reportable segments is as follows (in thousands):

 

 

Americas

 

 

EMEA

 

 

Other (1)

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

1,330,638

 

 

$

294,954

 

 

$

95

 

 

$

1,625,687

 

Percentage of revenues

 

81.9

%

 

 

18.1

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

48,378

 

 

$

5,952

 

 

$

3,020

 

 

$

57,350

 

Amortization of intangibles

$

14,287

 

 

$

1,255

 

 

$

 

 

$

15,542

 

Income (loss) from operations

$

108,021

 

 

$

16,507

 

 

$

(61,326

)

 

$

63,202

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(6,285

)

 

 

(6,285

)

Income taxes

 

 

 

 

 

 

 

 

 

(7,991

)

 

 

(7,991

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

48,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

1,325,643

 

 

$

260,283

 

 

$

82

 

 

$

1,586,008

 

Percentage of revenues

 

83.6

%

 

 

16.4

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

47,730

 

 

$

5,211

 

 

$

3,031

 

 

$

55,972

 

Amortization of intangibles

$

20,144

 

 

$

938

 

 

$

 

 

$

21,082

 

Income (loss) from operations

$

136,386

 

 

$

16,067

 

 

$

(65,411

)

 

$

87,042

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(5,735

)

 

 

(5,735

)

Income taxes

 

 

 

 

 

 

 

 

 

(49,091

)

 

 

(49,091

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

32,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

1,220,818

 

 

$

239,089

 

 

$

130

 

 

$

1,460,037

 

Percentage of revenues

 

83.6

%

 

 

16.4

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

42,436

 

 

$

4,532

 

 

$

2,045

 

 

$

49,013

 

Amortization of intangibles

$

18,329

 

 

$

1,048

 

 

$

 

 

$

19,377

 

Income (loss) from operations

$

140,256

 

 

$

18,380

 

 

$

(66,263

)

 

$

92,373

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(3,489

)

 

 

(3,489

)

Income taxes

 

 

 

 

 

 

 

 

 

(26,494

)

 

 

(26,494

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

62,390

 

 

 

(1)

Other items (including corporate and other costs, other income and expense, and income taxes) are shown for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the years ended December 31, 2018, 2017 and 2016.  Inter-segment revenues are not material to the Americas and EMEA segment results.

The Company’s reportable segments are evaluated regularly by its chief operating decision maker to decide how to allocate resources and assess performance. The chief operating decision maker evaluates performance based upon reportable segment revenue and income (loss) from operations.  Because assets by segment are not reported to or used by the Company’s chief operating decision maker to allocate resources, or to assess performance, total assets by segment are not disclosed.

Total revenues by segment from AT&T Corporation (“AT&T”), a major provider of communication services for which the Company provides various customer support services over several distinct lines of AT&T businesses, were as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

Americas

$

164,793

 

 

12.4%

 

 

$

220,010

 

 

16.6%

 

 

$

239,033

 

 

19.6%

 

EMEA

 

179

 

 

0.1%

 

 

 

 

 

0.0%

 

 

 

 

 

0.0%

 

 

$

164,972

 

 

10.1%

 

 

$

220,010

 

 

13.9%

 

 

$

239,033

 

 

16.4%

 

 

The Company has multiple distinct contracts with AT&T spread across multiple lines of businesses, which expire at varying dates between 2019 and 2021. The Company has historically renewed most of these contracts. However, there is no assurance that these contracts will be renewed, or if renewed, will be on terms as favorable as the existing contracts. Each line of business is governed by separate business terms, conditions and metrics. Each line of business also has a separate decision maker such that a loss of one line of business would not necessarily impact the Company’s relationship with the client and decision makers on other lines of business. The loss of (or the failure to retain a significant amount of business with) any of the Company’s key clients, including AT&T, could have a material adverse effect on its performance. Many of the Company’s contracts contain penalty provisions for failure to meet minimum service levels and are cancelable by the client at any time or on short notice. Also, clients may unilaterally reduce their use of the Company’s services under the contracts without penalty.

Total revenues by segment from the Company’s next largest client, which was in the financial services vertical in each of the years, were as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

Americas

$

105,852

 

 

8.0%

 

 

$

109,475

 

 

8.3%

 

 

$

90,508

 

 

7.4%

 

EMEA

 

 

 

0.0%

 

 

 

 

 

0.0%

 

 

 

 

 

0.0%

 

 

$

105,852

 

 

6.5%

 

 

$

109,475

 

 

6.9%

 

 

$

90,508

 

 

6.2%

 

 

Other than AT&T, total revenues by segment of the Company’s clients that each individually represents 10% or greater of that segment’s revenues in each of the periods were as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

Americas

$

 

 

0.0%

 

 

$

 

 

0.0%

 

 

$

 

 

0.0%

 

EMEA

 

104,856

 

 

35.5%

 

 

 

104,829

 

 

40.3%

 

 

 

96,115

 

 

40.2%

 

 

$

104,856

 

 

6.4%

 

 

$

104,829

 

 

6.6%

 

 

$

96,115

 

 

6.6%

 

 

The Company’s top ten clients accounted for approximately 44.2%, 46.9% and 49.2% of its consolidated revenues during the years ended December 31, 2018, 2017 and 2016, respectively.

The following table represents a disaggregation of revenue from contracts with customers by geographic location for the years ended December 31, 2018, 2017 and 2016, by the reportable segment for each category (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

United States

$

668,580

 

 

$

644,870

 

 

$

578,753

 

The Philippines

 

231,966

 

 

 

241,211

 

 

 

235,333

 

Costa Rica

 

127,963

 

 

 

132,542

 

 

 

124,823

 

Canada

 

102,353

 

 

 

112,367

 

 

 

115,226

 

El Salvador

 

81,156

 

 

 

75,800

 

 

 

69,937

 

People's Republic of China

 

34,942

 

 

 

38,880

 

 

 

34,851

 

Australia

 

31,811

 

 

 

28,442

 

 

 

24,267

 

Mexico

 

24,998

 

 

 

25,496

 

 

 

18,167

 

Colombia

 

18,067

 

 

 

16,042

 

 

 

8,901

 

Other

 

8,802

 

 

 

9,993

 

 

 

10,560

 

Total Americas

 

1,330,638

 

 

 

1,325,643

 

 

 

1,220,818

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

Germany

 

91,703

 

 

 

81,634

 

 

 

78,982

 

Sweden

 

55,491

 

 

 

56,843

 

 

 

59,313

 

United Kingdom

 

57,308

 

 

 

42,247

 

 

 

38,167

 

Romania

 

34,205

 

 

 

27,924

 

 

 

21,387

 

Other

 

56,247

 

 

 

51,635

 

 

 

41,240

 

Total EMEA

 

294,954

 

 

 

260,283

 

 

 

239,089

 

Total Other

 

95

 

 

 

82

 

 

 

130

 

 

$

1,625,687

 

 

$

1,586,008

 

 

$

1,460,037

 

 

Revenues are attributed to countries based on location of customer, except for revenues for the Philippines, Costa Rica, the People’s Republic of China and India which are primarily comprised of customers located in the U.S., but serviced by centers in those respective geographic locations.

The Company’s long-lived assets, including property and equipment, net and intangibles, net, by geographic location were as follows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Americas:

 

 

 

 

 

 

 

United States

$

197,167

 

 

$

219,476

 

The Philippines

 

9,840

 

 

 

15,199

 

Costa Rica

 

6,511

 

 

 

9,170

 

Canada

 

4,654

 

 

 

6,400

 

El Salvador

 

4,810

 

 

 

4,048

 

People's Republic of China

 

3,379

 

 

 

3,840

 

Australia

 

13,693

 

 

 

1,256

 

Mexico

 

4,077

 

 

 

2,812

 

Colombia

 

2,371

 

 

 

2,710

 

Other

 

2,882

 

 

 

1,772

 

Total Americas

 

249,384

 

 

 

266,683

 

EMEA:

 

 

 

 

 

 

 

Germany

 

3,395

 

 

 

2,460

 

Sweden

 

1,222

 

 

 

1,171

 

United Kingdom

 

28,036

 

 

 

3,016

 

Romania

 

1,965

 

 

 

1,929

 

Other

 

8,468

 

 

 

7,241

 

Total EMEA

 

43,086

 

 

 

15,817

 

Total Other

 

16,979

 

 

 

18,567

 

 

$

309,449

 

 

$

301,067

 

 

Goodwill by segment was as follows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Americas

$

255,436

 

 

$

258,496

 

EMEA

 

47,081

 

 

 

10,769

 

 

$

302,517

 

 

$

269,265

 

 

v3.10.0.1
Other Income (Expense)
12 Months Ended
Dec. 31, 2018
Other Income And Expenses [Abstract]  
Other Income (Expense)

Note 26. Other Income (Expense)

Other income (expense), net consists of the following (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Foreign currency transaction gains (losses)

$

2,029

 

 

$

(548

)

 

$

3,348

 

Gains (losses) on derivative instruments not designated as hedges

 

(1,751

)

 

 

143

 

 

 

(2,270

)

Gains (losses) on investments held in rabbi trust

 

(867

)

 

 

1,619

 

 

 

582

 

Other miscellaneous income (expense)

 

(1,659

)

 

 

44

 

 

 

(186

)

 

$

(2,248

)

 

$

1,258

 

 

$

1,474

 

 

v3.10.0.1
Related Party Transactions
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

Note 27. Related Party Transactions

In January 2008, the Company entered into a lease for a customer engagement center located in Kingstree, South Carolina. The landlord, Kingstree Office One, LLC, is an entity controlled by John H. Sykes, the founder, former Chairman and former Chief Executive Officer of the Company and the father of Charles Sykes, President and Chief Executive Officer of the Company. The lease payments on the 20-year lease were negotiated at or below market rates, and the lease is cancellable at the option of the Company. The Company paid $0.5 million, $0.5 million and $0.4 million to the landlord during the years ended December 31, 2018, 2017 and 2016, respectively, under the terms of the lease.

During the year ended December 31, 2018, the Company contracted to receive services from XSell, an equity method investee, for $0.2 million.  There were no such transactions in 2017 or 2016. These related party transactions occurred in the normal course of business on terms and conditions that are similar to those of transactions with unrelated parties and, therefore, were measured at the exchange amount.

v3.10.0.1
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2018
Valuation And Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts

Schedule II — Valuation and Qualifying Accounts

Years ended December 31, 2018, 2017 and 2016:

 

(in thousands)

Balance at Beginning of Period

 

 

Charged (Credited) to Costs and Expenses

 

 

Additions (Deductions) (1)

 

 

Balance at End of Period

 

Allowance for doubtful accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2018

$

2,958

 

 

 

323

 

 

$

(185

)

 

$

3,096

 

Year ended December 31, 2017

 

2,925

 

 

 

63

 

 

 

(30

)

 

 

2,958

 

Year ended December 31, 2016

 

3,574

 

 

 

89

 

 

 

(738

)

 

 

2,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation allowance for net deferred tax assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2018

$

32,443

 

 

$

(144

)

 

$

 

 

$

32,299

 

Year ended December 31, 2017

 

30,221

 

 

 

2,222

 

 

 

 

 

 

32,443

 

Year ended December 31, 2016

 

30,065

 

 

 

156

 

 

 

 

 

 

30,221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reserves for value added tax receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2018

$

76

 

 

$

 

 

$

(4

)

 

$

72

 

Year ended December 31, 2017

 

77

 

 

 

 

 

 

(1

)

 

 

76

 

Year ended December 31, 2016

 

283

 

 

 

(148

)

 

 

(58

)

 

 

77

 

 

 

(1)

Net write-offs and recoveries, including the effect of foreign currency translation.

v3.10.0.1
Overview and Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Business

Business Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) is a leading provider of multichannel demand generation and global customer engagement services.  SYKES provides differentiated full lifecycle customer engagement solutions and services primarily to Global 2000 companies and their end customers principally within the financial services, communications, technology, transportation & leisure, healthcare and other industries. SYKES primarily provides customer engagement solutions and services with an emphasis on inbound multichannel demand generation, customer service and technical support to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. SYKES also provides various enterprise support services in the United States that include services for its clients’ internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services, which include order processing, payment processing, inventory control, product delivery and product returns handling. Additionally, through the Company’s acquisition of robotic processing automation (“RPA”) provider Symphony Ventures Ltd (“Symphony”) coupled with our investment in artificial intelligence (“AI”) through XSell Technologies, Inc. (“XSell”), the Company also provides a suite of solutions such as consulting, implementation, hosting and managed services that optimizes its differentiated full lifecycle management services platform. The Company has operations in two reportable segments entitled (1) the Americas, in which the client base is primarily companies in the United States that are using the Company’s services to support their customer management needs, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim; and (2) EMEA, which includes Europe, the Middle East and Africa.

U.S. 2017 Tax Reform Act

On December 20, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Reform Act”) was approved by Congress and received presidential approval on December 22, 2017. In general, the 2017 Tax Reform Act reduced the United States (“U.S.”) corporate income tax rate from 35% to 21%, effective in 2018. The 2017 Tax Reform Act moved from a worldwide business taxation approach to a participation exemption regime. The 2017 Tax Reform Act also imposed base-erosion prevention measures on non-U.S. earnings of U.S. entities, as well as a one-time mandatory deemed repatriation tax on accumulated non-U.S. earnings. The impact of the 2017 Tax Reform Act on the consolidated financial results began with the fourth quarter of 2017, the period of enactment. This impact, along with the transitional taxes discussed in Note 20, Income Taxes, is reflected in the Other segment.

Acquisitions

On November 1, 2018, the Company completed the acquisition of Symphony, pursuant to a definitive Share Purchase Agreement (the “Symphony Purchase Agreement”) entered into on October 18, 2018 (the “Symphony acquisition”). The Company has reflected Symphony’s results in its consolidated financial statements in the EMEA segment since November 1, 2018.  

On July 9, 2018, the Company completed the acquisition of WhistleOut Pty Ltd and WhistleOut Inc. (together, “WhistleOut”), pursuant to a definitive Share Sale Agreement (the “WhistleOut Sale Agreement”).  The Company has reflected WhistleOut’s results in its consolidated financial statements in the Americas segment since July 9, 2018.  

In May 2017, the Company completed the acquisition of certain assets of a Global 2000 telecommunications services provider, pursuant to a definitive Asset Purchase Agreement (the “Telecommunications Asset Acquisition Purchase Agreement”) entered into on April 24, 2017 (the “Telecommunications Asset acquisition”).  The Company has reflected the Telecommunications Asset acquisition’s results in its consolidated financial statements in the Americas segment since May 31, 2017.  

In April 2016, the Company completed the acquisition of Clear Link Holdings, LLC (“Clearlink”), pursuant to a definitive Agreement and Plan of Merger (the “Merger Agreement”), dated March 6, 2016. The Company has reflected Clearlink’s results in its consolidated financial statements in the Americas segment since April 1, 2016.

The Company’s acquisitions during 2017 and 2018 were immaterial to the Company individually and in the aggregate.  See Note 3, Acquisitions, for additional information.  

Principles of Consolidation

Principles of Consolidation The consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. Investments in less than majority-owned subsidiaries in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. All intercompany transactions and balances have been eliminated in consolidation.  

Use of Estimates

Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”)  requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Subsequent Events

Subsequent Events — Subsequent events or transactions have been evaluated through the date and time of issuance of the consolidated financial statements. On February 14, 2019, the Company entered into a new credit agreement.  See Note 18, Borrowings, for further information. There were no other material subsequent events that required recognition or disclosure in the accompanying consolidated financial statements.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted cash — Cash and cash equivalents consist of cash and highly liquid short-term investments, primarily held in non-interest-bearing investments which have original maturities of less than 90 days. Cash in the amount of $128.7 million and $343.7 million at December 31, 2018 and 2017, respectively, was primarily held in non-interest bearing accounts. Cash and cash equivalents of $115.7 million and $335.1 million at December 31, 2018 and 2017, respectively, were held in international operations. Most of these funds will not be subject to additional taxes if repatriated to the United States. There are circumstances where the Company may be unable to repatriate some of the cash and cash equivalents held by its international operations due to country restrictions.

Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations.  

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statements of Cash Flows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

 

2016

 

 

2015

 

Cash and cash equivalents

$

128,697

 

 

$

343,734

 

 

$

266,675

 

 

$

235,358

 

Restricted cash included in "Other current assets"

 

149

 

 

 

154

 

 

 

160

 

 

 

207

 

Restricted cash included in "Deferred charges and

   other assets"

 

1,385

 

 

 

917

 

 

 

759

 

 

 

680

 

 

$

130,231

 

 

$

344,805

 

 

$

267,594

 

 

$

236,245

 

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts on trade account receivables for estimated losses arising from the inability of its customers to make required payments. The Company’s estimate is based on qualitative and quantitative analyses, including credit risk measurement tools and methodologies using publicly available credit and capital market information, a review of the current status of the Company’s trade accounts receivable and the historical collection experience of the Company’s clients. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change if the financial condition of the Company’s customers were to deteriorate, resulting in a reduced ability to make payments.

Property and Equipment

Property and Equipment Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the respective assets. Improvements to leased premises are amortized over the shorter of the related lease term or the estimated useful lives of the improvements. Cost and related accumulated depreciation on assets retired or disposed of are removed from the accounts and any resulting gains or losses are credited or charged to income. The Company capitalizes certain costs incurred, if any, to internally develop software upon the establishment of technological feasibility. Costs incurred prior to the establishment of technological feasibility are expensed as incurred.  

The carrying value of property and equipment to be held and used is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, Property, Plant and Equipment. For purposes of recognition and measurement of an impairment loss, assets are grouped at the lowest levels for which there are identifiable cash flows (the “asset group”).  An asset is considered to be impaired when the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition does not exceed its carrying amount. The amount of the impairment loss, if any, is measured as the amount by which the carrying value of the asset exceeds its estimated fair value, which is generally determined based on appraisals or sales prices of comparable assets or independent third party offers. Occasionally, the Company redeploys property and equipment from under-utilized centers to other locations to improve capacity utilization if it is determined that the related undiscounted future cash flows in the under-utilized centers would not be sufficient to recover the carrying amount of these assets. Other than what has been disclosed in Note 5, Fair Value, the Company determined that its property and equipment was not impaired as of December 31, 2018 and 2017.

Rent Expense

Rent Expense The Company has entered into operating lease agreements, some of which contain provisions for future rent increases, rent free periods, or periods in which rent payments are reduced. The total amount of the rental payments due over the lease term is being charged to rent expense on the straight-line method over the term of the lease in accordance with ASC 840, Leases.

Goodwill

Goodwill The Company accounts for goodwill and other intangible assets under ASC 350, Intangibles — Goodwill and Other (“ASC 350”). The Company expects to receive future benefits from previously acquired goodwill over an indefinite period of time.  For goodwill and other intangible assets with indefinite lives not subject to amortization, the Company reviews goodwill and intangible assets for impairment at least annually in the third quarter, and more frequently in the presence of certain circumstances. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company may elect to forgo this option and proceed to the quantitative goodwill impairment test.  If the Company elects to perform the qualitative assessment and it indicates that a significant decline to fair value of a reporting unit is more likely than not, or if a reporting unit’s fair value has historically been closer to its carrying value, or the Company elects to forgo this qualitative assessment, the Company will proceed to the quantitative goodwill impairment test where the fair value of a reporting unit is calculated based on discounted future probability-weighted cash flows. If the quantitative goodwill impairment test indicates that the carrying value of a reporting unit is in excess of its fair value, the Company will recognize an impairment loss for the amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit.

Intangible Assets

Intangible Assets — Definite-lived intangible assets, primarily customer relationships, are amortized using the straight-line method over their estimated useful lives which approximate the pattern in which the economic benefits of the assets are consumed. The Company periodically evaluates the recoverability of intangible assets and takes into account events or changes in circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. Fair value for intangible assets is based on discounted cash flows, market multiples and/or appraised values, as appropriate.

Income Taxes

Income Taxes The Company accounts for income taxes under ASC 740, Income Taxes (“ASC 740”) which requires recognition of deferred tax assets and liabilities to reflect tax consequences of differences between the tax bases of assets and liabilities and their reported amounts in the accompanying consolidated financial statements. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, both positive and negative, for each respective tax jurisdiction, it is more likely than not that the deferred tax assets will not be realized in accordance with the criteria of ASC 740. Valuation allowances are established against deferred tax assets due to an uncertainty of realization. Valuation allowances are reviewed each period on a tax jurisdiction by tax jurisdiction basis to analyze whether there is sufficient positive or negative evidence, in accordance with criteria of ASC 740, to support a change in judgment about the ability to realize the related deferred tax assets. Uncertainties regarding expected future income in certain jurisdictions could affect the realization of deferred tax assets in those jurisdictions.  

The Company evaluates tax positions that have been taken or are expected to be taken in its tax returns and records a liability for uncertain tax positions in accordance with ASC 740. ASC 740 contains a two-step approach to recognizing and measuring uncertain tax positions. First, tax positions are recognized if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon examination, including resolution of related appeals or litigation processes, if any. Second, the tax position is measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes in the accompanying consolidated financial statements.

Self-Insurance Programs

Self-Insurance Programs The Company self-insures for certain levels of workers' compensation and self-funds the medical, prescription drug and dental benefit plans in the United States.  Estimated costs are accrued at the projected settlements for known and anticipated claims. Amounts related to these self-insurance programs are included in “Accrued employee compensation and benefits” and “Other long-term liabilities” in the accompanying Consolidated Balance Sheets.

Deferred Grants

Deferred Grants Recognition of income associated with grants for land and the acquisition of property, buildings and equipment (together, “property grants”) is deferred until after the completion and occupancy of the building and title has passed to the Company, and the funds have been released from escrow. The deferred amounts for both land and building are amortized and recognized as a reduction of depreciation expense over the corresponding useful lives of the related assets. Amounts received in excess of the cost of the building are allocated to the cost of equipment and, only after the grants are released from escrow, recognized as a reduction of depreciation expense over the weighted average useful life of the related equipment, which approximates five years. Upon sale of the related facilities, any deferred grant balance is recognized in full and is included in the gain on sale of property and equipment.

The Company receives government employment grants as an incentive to create and maintain permanent employment positions for a specified time period. These grants are repayable, under certain terms and conditions, if the Company's relevant employment levels do not meet or exceed the employment levels set forth in the grant agreements. Accordingly, grant monies received are deferred and amortized primarily as a reduction to “Direct salaries and related costs” using the proportionate performance model over the required employment period.  

The Company receives government lease grants as an incentive for leasing space at specific locations or locating engagement centers in a government’s jurisdiction. These grants are repayable under certain terms and conditions, as set forth in the grant agreements. Accordingly, grant monies received are deferred and amortized primarily as a reduction to rent expense included in “General and administrative” over the required lease period.  

Investments in Equity Method Investees

Investments in Equity Method Investees — The Company uses the equity method to account for investments in companies if the investment provides the ability to exercise significant influence, but not control, over operating and financial policies of the investee. The Company’s proportionate share of the net income or loss of an equity method investment is included in consolidated net income. Judgment regarding the level of influence over an equity method investment includes considering key factors such as the Company’s ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions.

The Company evaluates an equity method investment for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. Factors considered by the Company when reviewing an equity method investment for impairment include the length of time (duration) and the extent (severity) to which the fair value of the equity method investment has been less than cost, the investee’s financial condition and near-term prospects, and the intent and ability to hold the investment for a period of time sufficient to allow for anticipated recovery. An impairment that is other-than-temporary is recognized in the period identified.  As of December 31, 2018 and 2017, the Company did not identify any instances where the carrying values of its equity method investments were not recoverable.

In July 2017, the Company made a strategic investment of $10.0 million in XSell for 32.8% of XSell’s preferred stock. The Company is incorporating XSell’s machine learning and AI algorithms into its business. The Company believes this will increase the sales performance of its agents to drive revenue for its clients, improve the experience of the Company’s clients’ end customers and enhance brand loyalty, reduce the cost of customer care and leverage analytics and machine learning to source the best agents and improve their performance.

The Company’s net investment in XSell of $9.2 million and $9.8 million was included in “Deferred charges and other assets” in the accompanying Consolidated Balance Sheets as of December 31, 2018 and 2017, respectively.  The Company’s investment was paid in two installments of $5.0 million, one in July 2017 and one in August 2018. The Company’s proportionate share of XSell’s income (loss) of $(0.7) million and $(0.1) million was included in “Other income (expense), net” in the accompanying Consolidated Statements of Operations for the years ended December 31, 2018 and 2017, respectively.  

Customer-Acquisition Advertising Costs

Customer-Acquisition Advertising Costs — The Company’s advertising costs are expensed as incurred. Total advertising costs included in the accompanying Consolidated Statements of Operations were as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Customer-acquisition advertising costs included

   in "Direct salaries and related costs"

$

49,657

 

 

$

36,659

 

 

$

28,116

 

Customer-acquisition advertising costs included

   in "General and administrative"

 

60

 

 

 

115

 

 

 

 

 

Stock-Based Compensation

Stock-Based Compensation — The Company has three stock-based compensation plans: the 2011 Equity Incentive Plan (for employees and certain non-employees), approved by the Company’s shareholders, the Non-Employee Director Fee Plan (for non-employee directors) and the Deferred Compensation Plan (for certain eligible employees). All of these plans are discussed more fully in Note 24, Stock-Based Compensation. Stock-based awards under these plans may consist of common stock, stock options, cash-settled or stock-settled stock appreciation rights, restricted stock and other stock-based awards. The Company issues common stock and uses treasury stock to satisfy stock option exercises or vesting of stock awards.

In accordance with ASC 718, Compensation — Stock Compensation (“ASC 718”), the Company recognizes in its accompanying Consolidated Statements of Operations the grant-date fair value of stock options and other equity-based compensation issued to employees and directors. Compensation expense for equity-based awards is recognized over the requisite service period, usually the vesting period, while compensation expense for liability-based awards (those usually settled in cash rather than stock) is re-measured to fair value at each balance sheet date until the awards are settled.  

Fair Value of Financial Instruments

Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

 

Cash, short-term and other investments, investments held in rabbi trust and accounts payable The carrying values for cash, short-term and other investments, investments held in rabbi trust and accounts payable approximate their fair values.

 

Foreign currency forward contracts and options Foreign currency forward contracts and options, including premiums paid on options, are recognized at fair value based on quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk.

 

Embedded derivatives — Embedded derivatives within certain hybrid lease agreements are bifurcated from the host contract and recognized at fair value based on pricing models or formulas using significant unobservable inputs, including adjustments for credit risk.

 

Long-term debt The carrying value of long-term debt approximates its estimated fair value as the debt bears interest based on variable market rates, as outlined in the debt agreement.

 

Contingent consideration Contingent consideration is recognized at fair value based on the discounted cash flow method.

Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements. ASC 820-10-20 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

ASC 825, Financial Instruments (“ASC 825”) permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to use the fair value option permitted under ASC 825 for any of its financial assets and financial liabilities that are not already recorded at fair value.

A description of the Company’s policies regarding fair value measurement is summarized below.

Fair Value Hierarchy ASC 820-10-35 requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy:

 

Level 1 Quoted prices for identical instruments in active markets.

 

Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

 

Level 3 Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Determination of Fair Value The Company generally uses quoted market prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access to determine fair value and classifies such items in Level 1. Fair values determined by Level 2 inputs utilize inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, and inputs other than quoted market prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, currency rates, etc. Assets or liabilities valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable.

The following section describes the valuation methodologies used by the Company to measure assets and liabilities at fair value on a recurring basis, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified.

Money Market and Open-End Mutual Funds The Company uses quoted market prices in active markets to determine the fair value.  These items are classified in Level 1 of the fair value hierarchy.

Foreign Currency Forward Contracts and Options The Company enters into foreign currency forward contracts and options over-the-counter and values such contracts using quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk. The key inputs include forward or option foreign currency exchange rates and interest rates. These items are classified in Level 2 of the fair value hierarchy.

Embedded Derivatives The Company uses significant unobservable inputs to determine the fair value of embedded derivatives, which are classified in Level 3 of the fair value hierarchy.  These unobservable inputs include expected cash flows associated with the lease, currency exchange rates on the day of commencement, as well as forward currency exchange rates; results of which are adjusted for credit risk. These items are classified in Level 3 of the fair value hierarchy. See Note 11, Financial Derivatives, for further information.

Investments Held in Rabbi Trust The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 12, Investments Held in Rabbi Trust, and Note 24, Stock-Based Compensation.

Contingent Consideration The Company uses significant unobservable inputs to determine the fair value of contingent consideration, which is classified in Level 3 of the fair value hierarchy.  The contingent consideration recorded related to the Qelp B.V. (“Qelp”) acquisition and liabilities assumed as part of the Clearlink acquisition was recognized at fair value using a discounted cash flow methodology and a discount rate of approximately 14.0% and 10.0%, respectively. The discount rates vary dependent on the specific risks of each acquisition including the country of operation, the nature of services and complexity of the acquired business, and other similar factors, all of which are significant inputs not observable in the market.  Significant increases or decreases in any of the inputs in isolation would result in a significantly higher or lower fair value measurement.

Foreign Currency Translation

Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is other than the U.S. Dollar, are translated at the exchange rates in effect on the balance sheet date, and income and expenses are translated at the weighted average exchange rate during the period. The net effect of translation gains and losses is not included in determining net income, but is included in “Accumulated other comprehensive income (loss)” (“AOCI”), which is reflected as a separate component of shareholders’ equity until the sale or until the complete or substantially complete liquidation of the net investment in the foreign subsidiary. Foreign currency transactional gains and losses are included in “Other income (expense), net” in the accompanying Consolidated Statements of Operations.

Foreign Currency and Derivative Instruments

Foreign Currency and Derivative Instruments The Company accounts for financial derivative instruments under ASC 815, Derivatives and Hedging (“ASC 815”). The Company generally utilizes non-deliverable forward contracts and options expiring within one to 24 months to reduce its foreign currency exposure due to exchange rate fluctuations on forecasted cash flows denominated in non-functional foreign currencies and net investments in foreign operations. In using derivative financial instruments to hedge exposures to changes in exchange rates, the Company exposes itself to counterparty credit risk.

The Company designates derivatives as either (1) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge); (2) a hedge of a net investment in a foreign operation; or (3) a derivative that does not qualify for hedge accounting.  To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship. Even if a derivative qualifies for hedge accounting treatment, there may be an element of ineffectiveness of the hedge.

Changes in the fair value of derivatives that are highly effective and designated as cash flow hedges are recorded in AOCI, until the forecasted underlying transactions occur. Any realized gains or losses resulting from the cash flow hedges are recognized together with the hedged transaction within “Revenues”. Changes in the fair value of derivatives that are highly effective and designated as a net investment hedge are recorded in cumulative translation adjustment in AOCI, offsetting the change in cumulative translation adjustment attributable to the hedged portion of the Company’s net investment in the foreign operation.  Any realized gains and losses from settlements of the net investment hedge remain in AOCI until partial or complete liquidation of the net investment. Ineffectiveness is measured based on the change in fair value of the forward contracts and options and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. Hedge ineffectiveness is recognized within “Revenues” for cash flow hedges and within “Other income (expense), net” for net investment hedges. Cash flows from the derivative contracts are classified within the operating section in the accompanying Consolidated Statements of Cash Flows.

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedging activities. This process includes linking all derivatives that are designated as cash flow hedges to forecasted transactions. Hedges of a net investment in a foreign operation are linked to the specific foreign operation.  The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective on a prospective and retrospective basis. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge or if a forecasted hedge is no longer probable of occurring, or if the Company de-designates a derivative as a hedge, the Company discontinues hedge accounting prospectively. At December 31, 2018 and 2017, all hedges were determined to be highly effective.

The Company also periodically enters into forward contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to reduce the effects from fluctuations caused by volatility in currency exchange rates on the Company’s operating results and cash flows. Changes in the fair value of the derivative instruments are included in “Revenues” or “Other income (expense), net”, depending on the underlying risk exposure.  See Note 11, Financial Derivatives, for further information on financial derivative instruments.

Reclassifications

Reclassifications — Certain balances in prior years have been reclassified to conform to current year presentation.  

New Accounting Standards Not Yet Adopted

New Accounting Standards Not Yet Adopted

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”) and subsequent amendments (together, “ASC 842”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840, Leases. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted.  Entities have the option to either apply the amendments (1) at the beginning of the earliest period presented using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements or (2) at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without the need to restate prior periods. There are also certain optional practical expedients that an entity may elect to apply.

The Company’s implementation team has compiled a detailed inventory of leases, performed a preliminary analysis of the impact to the financial statements, and implemented a lease accounting software solution to assist in complying with ASC 842. Additionally, the implementation team is evaluating the impact of ASC 842 on the Company’s business processes, systems and internal controls, and has begun the process of instituting changes where needed.

The Company elected to use the package of practical expedients that allows it to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company additionally elected to use the practical expedients that allows lessees to treat the lease and non-lease components of leases as a single lease component as well as the short-term lease recognition exemption for certain of the Company’s asset classes. The Company will adopt this guidance at the adoption date of January 1, 2019, using the transition method that allows it to initially apply ASC 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company does not expect to recognize a material adjustment to retained earnings upon adoption.

The adoption of ASC 842 will have a material impact on the Company’s Consolidated Balance Sheet due to the recognition of the right-of-use (“ROU”) assets and lease liabilities. The Company believes that the majority of its leases will maintain their current lease classification under ASC 842. The adoption of ASC 842 is not expected to have a material impact on the Company’s Consolidated Statement of Operations or Consolidated Statement of Cash Flows. Because of the transition method the Company has elected, ASC 842 will not be applied to periods prior to adoption and, therefore, will have no impact on the Company’s previously reported results. The future undiscounted minimum lease payments for the Company’s operating leases of $253.3 million as of December 31, 2018 are discussed in Note 22, Commitments and Loss Contingency. Upon adoption of ASC 842, the Company expects to recognize operating lease ROU assets in the range of $212.0 million to $217.0 million and lease liabilities in the range of $225.0 million to $230.0 million, which generally reflects the present value of these future payments. After the adoption of ASC 842, the Company will first report the ROU assets and lease liabilities as of March 31, 2019 based on its lease portfolio as of that date.

Fair Value Measurements

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). These amendments remove, modify or add certain disclosure requirements for fair value measurements.  These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Certain of the amendments will be applied prospectively in the initial year of adoption while the remainder are required to be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. The Company is evaluating the timing of its adoption of ASU 2018-13 but does not expect a material impact on its disclosures.

Retirement Benefits

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans - General (Subtopic 715-20) – Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). These amendments remove, modify or add certain disclosure requirements for defined benefit plans.  These amendments are effective for fiscal years ending after December 15, 2020, with early adoption permitted.  The Company is evaluating the timing of its adoption of ASU 2018-14 but does not expect a material impact on its disclosures.

Cloud Computing

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update.  The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.  The Company is evaluating the timing of its adoption of ASU 2018-15 but does not expect a material impact on its financial condition, results of operations, cash flows and disclosures.

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedge Activities (“ASU 2017-12”). These amendments help simplify certain aspects of hedge accounting and better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results.  For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively.  These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update.  The Company does not expect the adoption of ASU 2017-12 to materially impact its financial condition, results of operations, cash flows and disclosures.

Financial Instruments – Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). These amendments require measurement and recognition of expected versus incurred credit losses for financial assets held. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2018-19”). These amendments clarify that receivables arising from operating leases are accounted for using the lease guidance in ASC 842 and not as financial instruments. These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company expects ASU 2016-13 to apply to its trade receivables but does not expect the adoption of the amendments to have a material impact on its financial condition, results of operations or cash flows because credit losses associated from trade receivables have historically been insignificant. Additionally, the Company does not anticipate early adopting ASU 2016-13.

New Accounting Standards Recently Adopted

New Accounting Standards Recently Adopted

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) and subsequent amendments (together, “ASC 606”). ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and indicates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  To achieve this, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation.  The Company adopted ASC 606 as of January 1, 2018 using the modified retrospective transition method.

See Note 2, Revenues, for further details as well as the Company’s significant accounting policy for the Recognition of Revenues.

Financial Instruments

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). These amendments modify how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception applies to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such, these investments may be measured at cost. These amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). These amendments clarify the presentation of cash receipts and payments in eight specific situations.  These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments have been applied using a retrospective transition method to each period presented. The adoption of ASU 2016-15 on January 1, 2018 did not have a material impact on the Company’s cash flows.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cash (A Consensus of the FASB Emerging Issues Task Force (“ASU 2016-18”). These amendments clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, requiring entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents.  These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments have been applied using a retrospective transition method to each period presented. The inclusion of restricted cash increased the beginning balance of cash in the Consolidated Statements of Cash Flows by $1.1 million for the year ended December 31, 2018, increased the beginning and ending balance of cash by $0.9 million and $1.1 million, respectively, for the year ended December 31, 2017 and increased the beginning and ending balances of cash by $0.9 million and $0.9 million, respectively, for the year ended December 31, 2016. Other than the change in presentation within the accompanying Consolidated Statements of Cash Flows, the retrospective adoption of ASU 2016-18 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Income Taxes

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”). These amendments require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs.  These amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods.  The adoption of ASU 2016-16 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements and no cumulative-effect adjustment to retained earnings was required.

In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income ("GILTI") provisions of the 2017 Tax Reform Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period costs are both acceptable methods subject to an accounting policy election. The Company evaluated the accounting treatment options related to the GILTI provisions and elected to treat any potential GILTI inclusions as a current period cost.  The election did not have a material impact on the Company’s consolidated financial statements.

In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). These amendments add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”). SAB 118, issued in December 2017, directs taxpayers to consider the implications of the 2017 Tax Reform Act as provisional when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. As described in Note 20, Income Taxes, and in accordance with SAB 118, the Company recorded amounts that were considered provisional as of December 31, 2017 and finalized the calculations in December 2018.

Other Comprehensive Income

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) (“ASU 2018-02”). These amendments allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Reform Act. These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendment in this update is permitted, including adoption in any interim period. These amendments can be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate tax rate in the 2017 Tax Reform Act is recognized. The early adoption of ASU 2018-02 on June 30, 2018 had no impact on the Company’s consolidated financial statements or disclosures.

Business Combinations

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business (“ASU 2017-01”). These amendments clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. These amendments were applied prospectively.  The adoption of ASU 2017-01 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Retirement Benefits

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). These amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period.  The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component outside of a subtotal of income from operations.  If a separate line item is not used, the line items used in the income statement to present other components of net benefit cost must be disclosed.  These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods.  These amendments were applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets.  The amendments allow a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements.

The Company adopted the income statement presentation aspects of ASU 2017-07 on a retrospective basis effective January 1, 2018. The following is a reconciliation of the effect of the reclassification of the interest cost and amortization of actuarial gain (loss) from operating expenses to other income (expense) in the Company’s Consolidated Statements of Operations for the years ended December 31, 2017 and 2016 (in thousands):

 

 

As Previously

Reported

 

 

Adjustments

Due to the

Adoption of

ASU 2017-07

 

 

As Revised

 

Year Ended December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

Direct salaries and related costs

$

1,039,790

 

 

$

(113

)

 

$

1,039,677

 

General and administrative

 

376,863

 

 

 

(38

)

 

 

376,825

 

Income from operations

 

86,891

 

 

 

151

 

 

 

87,042

 

Other income (expense), net

 

(5,584

)

 

 

(151

)

 

 

(5,735

)

Year Ended December 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

Direct salaries and related costs

$

947,677

 

 

$

(84

)

 

$

947,593

 

General and administrative

 

351,722

 

 

 

(41

)

 

 

351,681

 

Income from operations

 

92,248

 

 

 

125

 

 

 

92,373

 

Other income (expense), net

 

(3,364

)

 

 

(125

)

 

 

(3,489

)

 

Recognition of Revenues Accounting Policy

Recognition of Revenues Accounting Policy

The Company recognizes revenues in accordance with ASC 606, whereby revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services.

Deferred Revenue

The Company receives up-front fees in connection with certain contracts. In accordance with ASC 606, the up-front fees are recorded as a contract liability only to the extent a legally enforceable contract exists.  The termination right notice period, which typically vary up to 180 days, is the portion of the contract that is legally enforceable.  Accordingly, the up-front fees allocated to the notification period are recorded as deferred revenue, while the fees that extend beyond the notification period are classified as a customer arrangement with termination rights. These up-front fees do not represent a significant financing component since they were structured primarily to reduce the administrative burden in managing the operations of certain contracts, to provide the customer with un-interrupted service, and to assist in managing the overall risk and profitability of providing the services.

Revenues of $4.4 million were recognized during the year ended December 31, 2018 from amounts included in deferred revenue at January 1, 2018.  The Company expects to recognize the majority of its deferred revenue as of December 31, 2018 over the next 180 days.

Customer Liabilities – Customer Arrangements with Termination Rights

Customer arrangements with termination rights represent the amount of up-front fees received for unsatisfied performance obligations for periods that extend beyond the legally enforceable contract period. All customer arrangements with termination rights are classified as current as the customer can terminate the contracts and demand pro-rata refunds of the up-front fees over varying periods, typically up to 180 days.  The Company expects to recognize the majority of the customer arrangements with termination rights into revenue as the Company has not historically experienced a high rate of contract terminations.

Customer Liabilities – Refund Liabilities

Refund liabilities represent consideration received under the contract that the Company expects to ultimately refund to the customer and primarily relates to estimated penalties, holdbacks and chargebacks.  Penalties and holdbacks result from the failure to meet specified minimum service levels in certain contracts and other performance-based contingencies.  Chargebacks reflect the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred.  

Refund liabilities are generally resolved in 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency.

Segments and Geographic Information

The Company operates within two regions, the Americas and EMEA. Each region represents a reportable segment comprised of aggregated regional operating segments, which portray similar economic characteristics. The Company aligns its business into two segments to effectively manage the business and support the customer care needs of every client and to respond to the demands of the Company’s global customers.

Earnings Per Share

Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust using the treasury stock method.

v3.10.0.1
Overview and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2018
Summary of Cash and Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statements of Cash Flows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

 

2016

 

 

2015

 

Cash and cash equivalents

$

128,697

 

 

$

343,734

 

 

$

266,675

 

 

$

235,358

 

Restricted cash included in "Other current assets"

 

149

 

 

 

154

 

 

 

160

 

 

 

207

 

Restricted cash included in "Deferred charges and

   other assets"

 

1,385

 

 

 

917

 

 

 

759

 

 

 

680

 

 

$

130,231

 

 

$

344,805

 

 

$

267,594

 

 

$

236,245

 

Schedule of Customer-Acquisition Advertising Costs Total advertising costs included in the accompanying Consolidated Statements of Operations were as follows (in thousands):

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Customer-acquisition advertising costs included

   in "Direct salaries and related costs"

$

49,657

 

 

$

36,659

 

 

$

28,116

 

Customer-acquisition advertising costs included

   in "General and administrative"

 

60

 

 

 

115

 

 

 

 

 

Accounting Standards Update 2017-07 [Member]  
Summary of Impact of Adoption of Accounting Standards The following is a reconciliation of the effect of the reclassification of the interest cost and amortization of actuarial gain (loss) from operating expenses to other income (expense) in the Company’s Consolidated Statements of Operations for the years ended December 31, 2017 and 2016 (in thousands):

 

As Previously

Reported

 

 

Adjustments

Due to the

Adoption of

ASU 2017-07

 

 

As Revised

 

Year Ended December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

Direct salaries and related costs

$

1,039,790

 

 

$

(113

)

 

$

1,039,677

 

General and administrative

 

376,863

 

 

 

(38

)

 

 

376,825

 

Income from operations

 

86,891

 

 

 

151

 

 

 

87,042

 

Other income (expense), net

 

(5,584

)

 

 

(151

)

 

 

(5,735

)

Year Ended December 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

Direct salaries and related costs

$

947,677

 

 

$

(84

)

 

$

947,593

 

General and administrative

 

351,722

 

 

 

(41

)

 

 

351,681

 

Income from operations

 

92,248

 

 

 

125

 

 

 

92,373

 

Other income (expense), net

 

(3,364

)

 

 

(125

)

 

 

(3,489

)

 

Accounting Standards Update 2014-09 [Member]  
Summary of Impact of Adoption of Accounting Standards

The cumulative effect of the adjustments made to the Company’s Consolidated Balance Sheet as of December 31, 2017 for the line items impacted by the adoption of ASC 606 was as follows (in thousands):

 

 

December 31, 2017

 

 

Adjustments

Due to the

Adoption of

ASC 606

 

 

January 1, 2018

 

Receivables, net

$

341,958

 

 

$

825

 

 

$

342,783

 

Deferred charges and other assets

 

29,193

 

 

 

2,045

 

 

 

31,238

 

Income taxes payable

 

2,606

 

 

 

697

 

 

 

3,303

 

Deferred revenue and customer liabilities

 

34,717

 

 

 

(1,048

)

 

 

33,669

 

Other long-term liabilities

 

22,039

 

 

 

202

 

 

 

22,241

 

Retained earnings

 

546,843

 

 

 

3,019

 

 

 

549,862

 

v3.10.0.1
Revenues (Tables)
12 Months Ended
Dec. 31, 2018
Revenues from Contracts with Customers Disaggregated by Service Type

The following table represents revenues from contracts with customers disaggregated by service type and by the reportable segment for each category (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

$

1,329,614

 

 

$

1,324,534

 

 

$

1,219,824

 

Other revenues

 

1,024

 

 

 

1,109

 

 

 

994

 

Total Americas

 

1,330,638

 

 

 

1,325,643

 

 

 

1,220,818

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

 

280,437

 

 

 

252,423

 

 

 

228,667

 

Other revenues

 

14,517

 

 

 

7,860

 

 

 

10,422

 

Total EMEA

 

294,954

 

 

 

260,283

 

 

 

239,089

 

Other:

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

95

 

 

 

82

 

 

 

130

 

Total Other

 

95

 

 

 

82

 

 

 

130

 

 

$

1,625,687

 

 

$

1,586,008

 

 

$

1,460,037

 

Receivables, Net

The Company’s trade accounts receivable, net, consists of the following (in thousands):

 

 

December 31, 2018

 

 

January 1, 2018

 

Trade accounts receivable, net, current (1)

$

335,377

 

 

$

332,014

 

Trade accounts receivable, net, noncurrent (2)

 

15,948

 

 

 

2,078

 

 

$

351,325

 

 

$

334,092

 

 

 

(1)

Included in “Receivables, net” in the accompanying Consolidated Balance Sheets.  The January 1, 2018 balance includes the $0.8 million adjustment recorded upon adoption of ASC 606.  

 

(2)

Included in “Deferred charges and other assets” in the accompanying Consolidated Balance Sheets.  The January 1, 2018 balance includes a $2.1 million adjustment recorded upon adoption of ASC 606.  

Receivables, net consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Trade accounts receivable, current

$

338,473

 

 

$

334,147

 

Income taxes receivable

 

916

 

 

 

4,138

 

Other

 

11,132

 

 

 

6,631

 

Receivables, gross

 

350,521

 

 

 

344,916

 

Less: Allowance for doubtful accounts

 

3,096

 

 

 

2,958

 

Receivables, net

$

347,425

 

 

$

341,958

 

Allowance for doubtful accounts as a percent of trade accounts receivable, current

 

0.9

%

 

 

0.9

%

Components of Deferred Revenue and Customer Liabilities

Deferred revenue and customer liabilities consists of the following (in thousands):

 

 

December 31, 2018

 

 

January 1, 2018

 

Deferred revenue

$

3,655

 

 

$

4,598

 

Customer arrangements with termination rights

 

16,404

 

 

 

21,755

 

Estimated refund liabilities (1)

 

10,117

 

 

 

7,316

 

 

$

30,176

 

 

$

33,669

 

 

 

(1)

The January 1, 2018 balance includes the $1.0 million adjustment recorded upon adoption of ASC 606.

Accounting Standards Update 2014-09 [Member]  
Summary of Impact of Adoption of Accounting Standards

The financial statement line items impacted by the adoption of ASC 606 in the Company’s Consolidated Balance Sheet as of December 31, 2018, including the impact of acquisitions, were as follows (in thousands):

 

 

As Reported

 

 

Balances

Without the

Impact of

the ASC 606

Adoption

 

 

Effect of

Adoption

Increase

(Decrease)

 

Receivables, net

$

347,425

 

 

$

344,975

 

 

$

2,450

 

Other current assets

 

16,761

 

 

 

16,648

 

 

 

113

 

Deferred charges and other assets

 

43,364

 

 

 

27,398

 

 

 

15,966

 

Income taxes payable

 

1,433

 

 

 

(2,088

)

 

 

3,521

 

Deferred revenue and customer liabilities

 

30,176

 

 

 

32,609

 

 

 

(2,433

)

Other accrued expenses and current liabilities

 

31,235

 

 

 

31,100

 

 

 

135

 

Other long-term liabilities

 

31,750

 

 

 

28,021

 

 

 

3,729

 

Retained earnings

 

598,788

 

 

 

585,211

 

 

 

13,577

 

 

The financial statement line items impacted by the adoption of ASC 606 in the Company’s Consolidated Statement of Operations for the year ended December 31, 2018, including the impact of acquisitions, were as follows, along with the impact per share (in thousands, except per share data):

 

 

As Reported

 

 

Balances

Without the

Impact of

the ASC 606

Adoption

 

 

Effect of

Adoption

Increase

(Decrease)

 

Revenues

$

1,625,687

 

 

$

1,608,731

 

 

$

16,956

 

Direct salaries and related costs

 

1,072,907

 

 

 

1,069,667

 

 

 

3,240

 

Income from operations

 

63,202

 

 

 

49,486

 

 

 

13,716

 

Income before income taxes

 

56,917

 

 

 

43,201

 

 

 

13,716

 

Income taxes

 

7,991

 

 

 

4,833

 

 

 

3,158

 

Net income

 

48,926

 

 

 

38,368

 

 

 

10,558

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

1.16

 

 

$

0.91

 

 

$

0.25

 

Diluted

$

1.16

 

 

$

0.91

 

 

$

0.25

 

v3.10.0.1
Acquisitions (Tables) - Clearlink [Member]
12 Months Ended
Dec. 31, 2018
Summary of Consideration Paid and Transferred

The Clearlink purchase price totaled $207.9 million, consisting of the following:

 

 

Total

 

Cash (1)

$

209,186

 

Working capital adjustment

 

(1,278

)

 

$

207,908

 

 

 

(1)

Funded through borrowings under the Company's credit agreement.  See Note 18, Borrowings, for more information.

Schedule of Revenues and Net Income

The amount of Clearlink’s revenues and net income since the April 1, 2016 acquisition date, included in the Company’s Consolidated Statement of Operations for the period indicated below, was as follows (in thousands):

 

 

From April 1, 2016

Through

December 31, 2016

 

Revenues

$

123,289

 

Net income

$

1,563

 

Schedule of Unaudited Pro Forma Combined Revenues and Net Earnings

The following table presents the unaudited pro forma combined revenues and net earnings as if Clearlink had been included in the consolidated results of the Company for the year ended December 31, 2016. The pro forma financial information is not indicative of the results of operations that would have been achieved if the acquisition and related borrowings had taken place on January 1, 2016 (in thousands):

 

 

Year Ended

December 31, 2016

 

Revenues

$

1,493,866

 

Net income

$

65,662

 

 

 

 

 

Net income per common share:

 

 

 

Basic

$

1.57

 

Diluted

$

1.55

 

Merger and Integration Costs

Merger and integration costs associated with Clearlink included in “General and administrative” costs in the accompanying Consolidated Statement of Operations for the year ended December 31, 2016 were as follows (none in 2018 and 2017) (in thousands):

 

 

Year Ended

December 31, 2016

 

Severance costs:

 

 

 

Americas

$

135

 

 

 

 

 

Transaction and integration costs:

 

 

 

Americas

 

29

 

Other

 

4,470

 

 

 

4,499

 

 

 

 

 

Total merger and integration costs

$

4,634

 

 

v3.10.0.1
Costs Associated with Exit or Disposal Activities (Tables)
12 Months Ended
Dec. 31, 2018
Restructuring And Related Activities [Abstract]  
Cumulative Total Costs Expected and Incurred to Date Related to Cash and Non-Cash Expenditures Resulting from Exit Plan

The cumulative total costs expected and incurred to date related to cash and non-cash expenditures resulting from the Americas 2018 Exit Plan are outlined below as of December 31, 2018 (in thousands):

 

 

Cumulative Costs Incurred To Date

 

Lease obligations and facility exit costs (1)

$

7,077

 

Severance and related costs (2)

 

3,429

 

Severance and related costs (1)

 

1,035

 

Non-cash impairment charges

 

5,875

 

 

$

17,416

 

 

 

(1)

Related to “General and administrative” costs.

 

(2)

Related to “Direct salaries and related costs.

Summary of Accrued Liability and Related Charges

The following table summarizes the accrued liability and related charges for the year ended December 31, 2018 (none in 2017 and 2016) (in thousands):

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

Balance at the beginning of the period

$

 

 

$

 

 

$

 

Charges included in "Direct salaries and related costs"

 

 

 

 

3,429

 

 

 

3,429

 

Charges included in "General and administrative"

 

7,077

 

 

 

1,035

 

 

 

8,112

 

Cash payments

 

(5,643

)

 

 

(3,647

)

 

 

(9,290

)

Balance sheet reclassifications (1)

 

335

 

 

 

 

 

 

335

 

Balance at the end of the period

$

1,769

 

 

$

817

 

 

$

2,586

 

 

 

(1)

Consists of the reclassification of deferred rent balances to the restructuring liability for locations subject to closure.  

Summary of Company’s Short-term and Long-term Accrued Liability with Exit Plan

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with the Americas 2018 Exit Plan as of December 31, 2018 (none in 2017) (in thousands):

 

 

December 31, 2018

 

Lease obligations and facility exit costs:

 

 

 

Included in "Accounts payable"

$

100

 

Included in "Other accrued expenses and current liabilities"

 

952

 

Included in "Other long-term liabilities"

 

717

 

 

 

1,769

 

Severance and related costs:

 

 

 

Included in "Accrued employee compensation and benefits"

 

793

 

Included in "Other accrued expenses and current liabilities"

 

24

 

 

 

817

 

 

$

2,586

 

 

v3.10.0.1
Fair Value (Tables)
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company's assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following (in thousands):

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

December 31, 2018

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward and option

   contracts (1)

$

1,068

 

 

$

 

 

$

1,068

 

 

$

 

Embedded derivatives (1)

 

10

 

 

 

 

 

 

 

 

 

10

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

8,075

 

 

 

8,075

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

3,367

 

 

 

3,367

 

 

 

 

 

 

 

 

$

12,520

 

 

$

11,442

 

 

$

1,068

 

 

$

10

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward and option

   contracts (1)

$

2,895

 

 

$

 

 

$

2,895

 

 

$

 

Embedded derivatives (1)

 

369

 

 

 

 

 

 

 

 

 

369

 

 

$

3,264

 

 

$

 

 

$

2,895

 

 

$

369

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

December 31, 2017

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward and option

   contracts (1)

$

3,848

 

 

$

 

 

$

3,848

 

 

$

 

Embedded derivatives (1)

 

52

 

 

 

 

 

 

 

 

 

52

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

8,094

 

 

 

8,094

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

3,533

 

 

 

3,533

 

 

 

 

 

 

 

 

$

15,527

 

 

$

11,627

 

 

$

3,848

 

 

$

52

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward and option

   contracts (1)

$

256

 

 

$

 

 

$

256

 

 

$

 

Embedded derivatives (1)

 

579

 

 

 

 

 

 

 

 

 

579

 

 

$

835

 

 

$

 

 

$

256

 

 

$

579

 

 

 

(1)

See Note 11, Financial Derivatives, for the classification in the accompanying Consolidated Balance Sheets.

 

(2)

Included in “Other current assets” in the accompanying Consolidated Balance Sheets.  See Note 12, Investments Held in Rabbi Trust.

Rollforward of Net Asset (Liability) Activity of Fair Value of Embedded Derivatives

A rollforward of the net asset (liability) activity in the Company’s fair value of the embedded derivatives is as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Balance at the beginning of the period

$

(527

)

 

$

(555

)

 

$

 

Gains (losses) recognized in "Other income (expense), net"

 

(7

)

 

 

(139

)

 

 

(714

)

Settlements

 

158

 

 

 

170

 

 

 

(7

)

Effect of foreign currency

 

17

 

 

 

(3

)

 

 

166

 

Balance at the end of the period

$

(359

)

 

$

(527

)

 

$

(555

)

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized gains (losses) included in "Other income

   (expense), net" related to embedded derivatives held at the

   end of the period

$

15

 

 

$

(325

)

 

$

3

 

Rollforward of Fair Value of Contingent Consideration (Liability)

A rollforward of the activity in the Company’s fair value of the contingent consideration (liability) is as follows (none in 2018) (in thousands):

 

 

Years Ended December 31,

 

 

2017

 

 

2016

 

Balance at the beginning of the period

$

(6,100

)

 

$

(6,280

)

Acquisition (1)

 

 

 

 

(2,779

)

Imputed interest

 

(76

)

 

 

(754

)

Fair value gain (loss) adjustments (2)

 

605

 

 

 

2,250

 

Settlements

 

5,760

 

 

 

1,396

 

Effect of foreign currency

 

(189

)

 

 

67

 

Balance at the end of the period

$

 

 

$

(6,100

)

Change in unrealized gains (losses) included in "General and

   administrative" related to contingent consideration

   outstanding at the end of the period

$

 

 

$

2,268

 

 

 

(1)

Liabilities acquired as part of the Clearlink acquisition on April 1, 2016.  See Note 3, Acquisitions.

 

(2)

Included in “General and administrative” costs in the accompanying Consolidated Statements of Operations.

Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) (none in 2016):

 

Total Impairment (Loss)

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

Americas:

 

 

 

 

 

 

 

Property and equipment, net

$

(9,401

)

 

$

(5,410

)

 

v3.10.0.1
Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Company's Purchased Intangible Assets

The following table presents the Company’s purchased intangible assets as of December 31, 2018 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

189,697

 

 

$

(106,502

)

 

$

83,195

 

 

 

10

 

Trade names and trademarks

 

19,236

 

 

 

(10,594

)

 

 

8,642

 

 

 

8

 

Non-compete agreements

 

2,746

 

 

 

(1,724

)

 

 

1,022

 

 

 

3

 

Content library

 

517

 

 

 

(517

)

 

 

 

 

 

2

 

Proprietary software

 

1,040

 

 

 

(725

)

 

 

315

 

 

 

4

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

80,857

 

 

 

 

 

 

80,857

 

 

N/A

 

 

$

294,093

 

 

$

(120,062

)

 

$

174,031

 

 

 

5

 

 

The following table presents the Company’s purchased intangible assets as of December 31, 2017 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

170,853

 

 

$

(95,175

)

 

$

75,678

 

 

 

10

 

Trade names and trademarks

 

14,138

 

 

 

(8,797

)

 

 

5,341

 

 

 

7

 

Non-compete agreements

 

1,820

 

 

 

(1,052

)

 

 

768

 

 

 

3

 

Content library

 

542

 

 

 

(542

)

 

 

 

 

 

2

 

Proprietary software

 

1,040

 

 

 

(585

)

 

 

455

 

 

 

4

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

58,035

 

 

 

 

 

 

58,035

 

 

N/A

 

 

$

246,428

 

 

$

(106,151

)

 

$

140,277

 

 

 

6

 

Estimated Future Amortization Expense

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to December 31, 2018, is as follows (in thousands):

 

Years Ending December 31,

Amount

 

2019

 

16,679

 

2020

 

14,013

 

2021

 

9,437

 

2022

 

8,133

 

2023

 

7,282

 

2024 and thereafter

 

37,630

 

Changes in Goodwill

Changes in goodwill for the year ended December 31, 2018 consist of the following (in thousands):

 

 

January 1, 2018

 

 

Acquisition

 

 

Effect of

Foreign

Currency

 

 

December 31, 2018

 

Americas

$

258,496

 

 

$

2,175

 

 

$

(5,235

)

 

$

255,436

 

EMEA

 

10,769

 

 

 

36,361

 

 

 

(49

)

 

 

47,081

 

 

$

269,265

 

 

$

38,536

 

 

$

(5,284

)

 

$

302,517

 

 

Changes in goodwill for the year ended December 31, 2017 consist of the following (in thousands):

 

 

January 1, 2017

 

 

Acquisition

 

 

Effect of

Foreign

Currency

 

 

December 31, 2017

 

Americas

$

255,842

 

 

$

390

 

 

$

2,264

 

 

$

258,496

 

EMEA

 

9,562

 

 

 

 

 

 

1,207

 

 

 

10,769

 

 

$

265,404

 

 

$

390

 

 

$

3,471

 

 

$

269,265

 

 

 

(1)

See Note 3, Acquisitions, for further information.

v3.10.0.1
Receivables, Net (Tables)
12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Receivables, Net

The Company’s trade accounts receivable, net, consists of the following (in thousands):

 

 

December 31, 2018

 

 

January 1, 2018

 

Trade accounts receivable, net, current (1)

$

335,377

 

 

$

332,014

 

Trade accounts receivable, net, noncurrent (2)

 

15,948

 

 

 

2,078

 

 

$

351,325

 

 

$

334,092

 

 

 

(1)

Included in “Receivables, net” in the accompanying Consolidated Balance Sheets.  The January 1, 2018 balance includes the $0.8 million adjustment recorded upon adoption of ASC 606.  

 

(2)

Included in “Deferred charges and other assets” in the accompanying Consolidated Balance Sheets.  The January 1, 2018 balance includes a $2.1 million adjustment recorded upon adoption of ASC 606.  

Receivables, net consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Trade accounts receivable, current

$

338,473

 

 

$

334,147

 

Income taxes receivable

 

916

 

 

 

4,138

 

Other

 

11,132

 

 

 

6,631

 

Receivables, gross

 

350,521

 

 

 

344,916

 

Less: Allowance for doubtful accounts

 

3,096

 

 

 

2,958

 

Receivables, net

$

347,425

 

 

$

341,958

 

Allowance for doubtful accounts as a percent of trade accounts receivable, current

 

0.9

%

 

 

0.9

%

v3.10.0.1
Prepaid Expenses (Tables)
12 Months Ended
Dec. 31, 2018
Text Block [Abstract]  
Prepaid Expenses, Net

Prepaid expenses consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Prepaid maintenance

$

5,888

 

 

$

7,773

 

Prepaid insurance

 

4,500

 

 

 

4,380

 

Prepaid software

 

3,499

 

 

 

1,638

 

Prepaid rent

 

3,471

 

 

 

3,767

 

Prepaid other

 

6,396

 

 

 

4,574

 

 

$

23,754

 

 

$

22,132

 

v3.10.0.1
Other Current Assets (Tables)
12 Months Ended
Dec. 31, 2018
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]  
Other Current Assets, Net

Other current assets consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Investments held in rabbi trust (Note 12)

$

11,442

 

 

$

11,627

 

Deferred rent

 

1,867

 

 

 

1,936

 

Financial derivatives (Note 11)

 

1,078

 

 

 

3,857

 

Other current assets

 

2,374

 

 

 

2,323

 

 

$

16,761

 

 

$

19,743

 

 

v3.10.0.1
Financial Derivatives (Tables)
12 Months Ended
Dec. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges

The deferred gains (losses) and related taxes on the Company’s cash flow hedges recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) in the accompanying Consolidated Balance Sheets are as follows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Deferred gains (losses) in AOCI

$

(1,825

)

 

$

2,550

 

Tax on deferred gains (losses) in AOCI

 

(39

)

 

 

(79

)

Deferred gains (losses) in AOCI, net of taxes

$

(1,864

)

 

$

2,471

 

Deferred gains (losses) expected to be reclassified

   to "Revenues" from AOCI during the next

   twelve months

$

(1,825

)

 

 

 

 

Outstanding Foreign Currency Forward Contracts, Options and Embedded Derivatives

The Company had the following outstanding foreign currency forward contracts and options, and embedded derivatives (in thousands):

 

 

December 31, 2018

 

December 31, 2017

Contract Type

Notional

Amount in

USD

 

 

Settle

Through

Date

 

Notional

Amount in

USD

 

 

Settle

Through

Date

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

Options:

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

$

26,250

 

 

December 2019

 

$

78,000

 

 

December 2018

Forwards:

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

 

39,000

 

 

September 2019

 

 

3,000

 

 

June 2018

US Dollars/Costa Rican Colones

 

67,000

 

 

December 2019

 

 

70,000

 

 

March 2019

Non-designated hedges:

 

 

 

 

 

 

 

 

 

 

 

Forwards

 

19,261

 

 

November 2021

 

 

9,253

 

 

March 2018

Embedded derivatives

 

14,069

 

 

April 2030

 

 

13,519

 

 

April 2030

Derivative Instruments Fair Value

The following tables present the fair value of the Company’s derivative instruments included in the accompanying Consolidated Balance Sheets (in thousands):

 

 

Derivative Assets

 

 

December 31, 2018

 

 

December 31, 2017

 

 

Fair Value

 

 

Fair Value

 

Derivatives designated as cash flow hedging

   instruments under ASC 815:

 

 

 

 

 

 

 

Foreign currency forward and option contracts (1)

$

1,038

 

 

$

3,604

 

Derivatives not designated as hedging

   instruments under ASC 815:

 

 

 

 

 

 

 

Foreign currency forward contracts (1)

 

30

 

 

 

244

 

Embedded derivatives (1)

 

10

 

 

 

9

 

Embedded derivatives (2)

 

 

 

 

43

 

Total derivative assets

$

1,078

 

 

$

3,900

 

 

 

Derivative Liabilities

 

 

December 31, 2018

 

 

December 31, 2017

 

 

Fair Value

 

 

Fair Value

 

Derivatives designated as cash flow hedging

   instruments under ASC 815:

 

 

 

 

 

 

 

Foreign currency forward and option contracts (3)

$

2,604

 

 

$

175

 

Foreign currency forward and option contracts (4)

 

 

 

 

81

 

 

 

2,604

 

 

 

256

 

Derivatives not designated as hedging

   instruments under ASC 815:

 

 

 

 

 

 

 

Foreign currency forward contracts (3)

 

247

 

 

 

 

Foreign currency forward contracts (4)

 

44

 

 

 

 

Embedded derivatives (3)

 

8

 

 

 

189

 

Embedded derivatives (4)

 

361

 

 

 

390

 

Total derivative liabilities

$

3,264

 

 

$

835

 

 

 

(1)

Included in "Other current assets" in the accompanying Consolidated Balance Sheets.

 

(2)

Included in "Deferred charges and other assets" in the accompanying Consolidated Balance Sheets.

 

(3)

Included in "Other accrued expenses and current liabilities" in the accompanying Consolidated Balance Sheets.

 

(4)

Included in "Other long-term liabilities" in the accompanying Consolidated Balance Sheets.

Effect of the Company's Derivative Instruments

The following table presents the effect of the Company’s derivative instruments included in the accompanying Consolidated Financial Statements for the years ended December 31, 2018, 2017 and 2016 (in thousands):

 

 

 

Gain (Loss) Recognized

in AOCI on Derivatives

(Effective Portion)

 

 

Gain (Loss) Reclassified

From AOCI Into "Revenues"

(Effective Portion)

 

 

Gain (Loss) Recognized in

"Revenues" on Derivatives

(Ineffective Portion and

Amount Excluded from

Effectiveness Testing)

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

 

2018

 

 

2017

 

 

2016

 

 

2018

 

 

2017

 

 

2016

 

Derivatives designated as cash

   flow hedging instruments

   under ASC 815:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward and option

   contracts

 

$

(4,259

)

 

$

2,277

 

 

$

(2,308

)

 

$

(26

)

 

$

(2,536

)

 

$

(553

)

 

$

(28

)

 

$

(1

)

 

$

(5

)

Derivatives designated as net

   investment hedging instruments

   under ASC 815:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

 

 

 

(8,352

)

 

 

3,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(4,259

)

 

$

(6,075

)

 

$

1,101

 

 

$

(26

)

 

$

(2,536

)

 

$

(553

)

 

$

(28

)

 

$

(1

)

 

$

(5

)

 

The following table presents the gains (losses) recognized in “Other income (expense), net” of the Company’s derivative instruments included in the accompanying Consolidated Financial Statements for the years ended December 31, 2018, 2017 and 2016 (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Derivatives not designated as hedging instruments

   under ASC 815:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

$

(1,744

)

 

$

282

 

 

$

(1,556

)

Embedded derivatives

 

(7

)

 

 

(139

)

 

 

(714

)

 

$

(1,751

)

 

$

143

 

 

$

(2,270

)

v3.10.0.1
Investments Held in Rabbi Trust (Tables)
12 Months Ended
Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]  
Investments Held in Rabbi Trust, Classified as Trading

The Company’s investments held in rabbi trust, classified as trading securities and included in “Other current assets” in the accompanying Consolidated Balance Sheets, at fair value, consist of the following (in thousands):

 

 

December 31, 2018

 

 

December 31, 2017

 

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

Mutual funds

$

8,864

 

 

$

11,442

 

 

$

8,096

 

 

$

11,627

 

Components of Investment Income (Losses), Included in Other Income (Expense), Net in Accompanying Consolidated Statements of Operations

The mutual funds held in the rabbi trust were 71% equity-based and 29% debt-based as of December 31, 2018. Net investment income (losses), included in “Other income (expense), net” in the accompanying Consolidated Statements of Operations consists of the following (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Net realized gains (losses) from sale of trading

   securities

$

10

 

 

$

195

 

 

$

241

 

Dividend and interest income

 

635

 

 

 

422

 

 

 

92

 

Net unrealized holding gains (losses)

 

(1,512

)

 

 

1,002

 

 

 

249

 

 

 

(867

)

 

 

1,619

 

 

$

582

 

v3.10.0.1
Property and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2018
Property Plant And Equipment [Abstract]  
Property and Equipment, Net

Property and equipment, net consists of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Land

$

2,185

 

 

$

3,217

 

Buildings and leasehold improvements

 

129,582

 

 

 

135,100

 

Equipment, furniture and fixtures

 

298,537

 

 

 

312,636

 

Capitalized internally developed software costs

 

41,883

 

 

 

34,886

 

Transportation equipment

 

636

 

 

 

556

 

Construction in progress

 

2,253

 

 

 

7,462

 

 

 

475,076

 

 

 

493,857

 

Less: Accumulated depreciation

 

339,658

 

 

 

333,067

 

 

$

135,418

 

 

$

160,790

 

 

Capitalized Internally Developed Software, Net of Depreciation

Capitalized internally developed software, net of depreciation, included in “Property and equipment, net” in the accompanying Consolidated Balance Sheets was as follows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Capitalized internally developed software costs, net

$

18,352

 

 

$

15,876

 

 

v3.10.0.1
Deferred Charges and Other Assets (Tables)
12 Months Ended
Dec. 31, 2018
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]  
Components of Deferred Charges and Other Assets

Deferred charges and other assets consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Trade accounts receivable, net, noncurrent (Note 2)

$

15,948

 

 

$

 

Equity method investments (Note 1)

 

9,702

 

 

 

10,341

 

Net deferred tax assets, noncurrent (Note 20)

 

5,797

 

 

 

6,657

 

Rent and other deposits

 

5,687

 

 

 

5,379

 

Value added tax receivables, net, noncurrent

 

519

 

 

 

548

 

Other

 

5,711

 

 

 

6,268

 

 

$

43,364

 

 

$

29,193

 

v3.10.0.1
Accrued Employee Compensation and Benefits (Tables)
12 Months Ended
Dec. 31, 2018
Text Block [Abstract]  
Components of Accrued Employee Compensation and Benefits

Accrued employee compensation and benefits consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Accrued compensation

$

34,095

 

 

$

42,505

 

Accrued bonus and commissions

 

19,835

 

 

 

22,523

 

Accrued vacation

 

19,019

 

 

 

18,848

 

Accrued employment taxes

 

15,598

 

 

 

11,412

 

Accrued severance and related costs (Note 4)

 

793

 

 

 

 

Other

 

6,473

 

 

 

7,611

 

 

$

95,813

 

 

$

102,899

 

v3.10.0.1
Other Accrued Expenses and Current Liabilities (Tables)
12 Months Ended
Dec. 31, 2018
Payables And Accruals [Abstract]  
Other Accrued Expenses and Current Liabilities

Other accrued expenses and current liabilities consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Deferred Symphony acquisition purchase price (Note 3)

$

3,394

 

 

$

 

Accrued legal and professional fees

 

3,380

 

 

 

3,417

 

Accrued rent

 

3,283

 

 

 

2,983

 

Financial derivatives (Note 11)

 

2,859

 

 

 

364

 

Accrued customer-acquisition advertising costs (Note 1)

 

2,831

 

 

 

403

 

Accrued telephone charges

 

2,000

 

 

 

1,515

 

Accrued roadside assistance claim costs

 

1,330

 

 

 

2,011

 

Accrued utilities

 

1,148

 

 

 

1,694

 

Accrued restructuring (Note 4)

 

976

 

 

 

 

Other

 

10,034

 

 

 

18,501

 

 

$

31,235

 

 

$

30,888

 

v3.10.0.1
Deferred Grants (Tables)
12 Months Ended
Dec. 31, 2018
Text Block [Abstract]  
Schedule of Deferred Grants, Net of Accumulated Amortization

Deferred grants, net of accumulated amortization, consist of the following (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Property grants

$

1,983

 

 

$

2,843

 

Lease grants

 

369

 

 

 

507

 

Employment grants

 

13

 

 

 

61

 

Total deferred grants

 

2,365

 

 

 

3,411

 

Less: Lease grants - short-term (1)

 

(111

)

 

 

(117

)

Less: Employment grants - short-term (1)

 

(13

)

 

 

(61

)

Total long-term deferred grants

$

2,241

 

 

$

3,233

 

 

 

(1)

Included in "Other accrued expenses and current liabilities" in the accompanying Consolidated Balance Sheets.

v3.10.0.1
Borrowings (Tables)
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Information Related to Credit Agreements

The following table presents information related to our credit agreements (dollars in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Average daily utilization

$

106,189

 

 

$

268,775

 

 

$

222,612

 

Interest expense (1), (2)

$

3,817

 

 

$

6,668

 

 

$

3,952

 

Weighted average interest rate (2)

 

3.6

%

 

 

2.5

%

 

 

1.8

%

 

 

(1)

Excludes the amortization of deferred loan fees.

 

(2)

Includes the commitment fee.

v3.10.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Components of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) consist of the following (in thousands):

 

 

Foreign

Currency

Translation

Adjustments

 

 

Unrealized

Gain

(Loss) on

Net

Investment

Hedge

 

 

Unrealized

Gain (Loss)

on

Cash Flow

Hedging

Instruments

 

 

Unrealized

Actuarial

Gain

(Loss)

Related

to Pension

Liability

 

 

Unrealized

Gain

(Loss) on

Postretirement

Obligation

 

 

Total

 

Balance at January 1, 2016

$

(58,601

)

 

$

4,170

 

 

$

(527

)

 

$

1,029

 

 

$

267

 

 

$

(53,662

)

Pre-tax amount

 

(13,832

)

 

 

3,409

 

 

 

(2,313

)

 

 

212

 

 

 

(9

)

 

 

(12,533

)

Tax (provision) benefit

 

 

 

 

(1,313

)

 

 

72

 

 

 

(8

)

 

 

 

 

 

(1,249

)

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

527

 

 

 

(52

)

 

 

(58

)

 

 

417

 

Foreign currency translation

 

40

 

 

 

 

 

 

16

 

 

 

(56

)

 

 

 

 

 

 

Balance at December 31, 2016

 

(72,393

)

 

 

6,266

 

 

 

(2,225

)

 

 

1,125

 

 

 

200

 

 

 

(67,027

)

Pre-tax amount

 

36,101

 

 

 

(8,352

)

 

 

2,276

 

 

 

527

 

 

 

(30

)

 

 

30,522

 

Tax (provision) benefit

 

 

 

 

3,132

 

 

 

(54

)

 

 

(18

)

 

 

 

 

 

3,060

 

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

2,444

 

 

 

(53

)

 

 

(50

)

 

 

2,341

 

Foreign currency translation

 

(23

)

 

 

 

 

 

30

 

 

 

(7

)

 

 

 

 

 

 

Balance at December 31, 2017

 

(36,315

)

 

 

1,046

 

 

 

2,471

 

 

 

1,574

 

 

 

120

 

 

 

(31,104

)

Pre-tax amount

 

(22,158

)

 

 

 

 

 

(4,287

)

 

 

783

 

 

 

 

 

 

(25,662

)

Tax (provision) benefit

 

 

 

 

 

 

 

84

 

 

 

47

 

 

 

 

 

 

131

 

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

6

 

 

 

(66

)

 

 

(80

)

 

 

(140

)

Foreign currency translation

 

220

 

 

 

 

 

 

(138

)

 

 

(82

)

 

 

 

 

 

 

Balance at December 31, 2018

$

(58,253

)

 

$

1,046

 

 

$

(1,864

)

 

$

2,256

 

 

$

40

 

 

$

(56,775

)

Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss)

The following table summarizes the amounts reclassified to net income from accumulated other comprehensive income (loss) and the associated line item in the accompanying Consolidated Statements of Operations (in thousands):

 

 

Years Ended December 31,

 

 

Statements of

Operations

 

2018

 

 

2017

 

 

2016

 

 

Location

Gain (loss) on cash flow hedging

   instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

$

(54

)

 

$

(2,537

)

 

$

(558

)

 

Revenues

Tax (provision) benefit

 

48

 

 

 

93

 

 

 

31

 

 

Income taxes

Reclassification to net income

 

(6

)

 

 

(2,444

)

 

 

(527

)

 

 

Actuarial gain (loss) related to

   pension liability: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

 

58

 

 

 

43

 

 

 

40

 

 

Other income (expense), net

Tax (provision) benefit

 

8

 

 

 

10

 

 

 

12

 

 

Income taxes

Reclassification to net income

 

66

 

 

 

53

 

 

 

52

 

 

 

Gain (loss) on postretirement

   obligation: (2),(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification to net income

 

80

 

 

 

50

 

 

 

58

 

 

Other income (expense), net

 

$

140

 

 

$

(2,341

)

 

$

(417

)

 

 

 

 

(1)

See Note 11, Financial Derivatives, for further information.

 

(2)

See Note 23, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

 

(3)

No related tax (provision) benefit.

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income From Continuing Operations Before Income Taxes

The income before income taxes consists of the following (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Domestic (U.S., state and local)

$

6,971

 

 

$

9,662

 

 

$

34,761

 

Foreign

 

49,946

 

 

 

71,645

 

 

 

54,123

 

 

$

56,917

 

 

$

81,307

 

 

$

88,884

 

 

Significant Components of Income Tax Provision

Significant components of the income tax provision are as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Current:

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

$

(492

)

 

$

29,986

 

 

$

9,514

 

State and local

 

54

 

 

 

855

 

 

 

1,958

 

Foreign

 

9,938

 

 

 

10,342

 

 

 

12,683

 

Total current provision for income taxes

 

9,500

 

 

 

41,183

 

 

 

24,155

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

 

(498

)

 

 

7,919

 

 

 

2,007

 

State and local

 

(85

)

 

 

922

 

 

 

(526

)

Foreign

 

(926

)

 

 

(933

)

 

 

858

 

Total deferred provision (benefit) for income taxes

 

(1,509

)

 

 

7,908

 

 

 

2,339

 

 

$

7,991

 

 

$

49,091

 

 

$

26,494

 

Significant Portions of Deferred Income Tax Provision (Benefit) Due to Temporary Differences

The temporary differences that give rise to significant portions of the deferred income tax provision (benefit) are as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Net operating loss and tax credit carryforwards

$

(613

)

 

$

1,231

 

 

$

285

 

Accrued expenses/liabilities

 

(2,512

)

 

 

16,470

 

 

 

1,173

 

Depreciation and amortization

 

101

 

 

 

(10,571

)

 

 

1,286

 

Valuation allowance

 

1,558

 

 

 

(1,441

)

 

 

901

 

Deferred statutory income

 

6

 

 

 

2,479

 

 

 

(1,394

)

Other

 

(49

)

 

 

(260

)

 

 

88

 

 

$

(1,509

)

 

$

7,908

 

 

$

2,339

 

 

Reconciliation of Income Tax Provision

The reconciliation of the income tax provision computed at the U.S. federal statutory tax rate to the Company’s effective income tax provision is as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Tax at U.S. federal statutory tax rate

$

11,953

 

 

$

28,457

 

 

$

31,109

 

State income taxes, net of federal tax benefit

 

(31

)

 

 

594

 

 

 

1,432

 

Foreign rate differential

 

(4,620

)

 

 

(14,736

)

 

 

(15,837

)

Tax holidays

 

(4,050

)

 

 

(2,951

)

 

 

(3,314

)

Permanent differences

 

12,150

 

 

 

8,749

 

 

 

12,768

 

Tax credits

 

(8,979

)

 

 

(5,102

)

 

 

(4,396

)

Foreign withholding and other taxes

 

(840

)

 

 

2,661

 

 

 

2,667

 

Valuation allowance

 

1,549

 

 

 

(1,689

)

 

 

994

 

Uncertain tax positions

 

771

 

 

 

(1,812

)

 

 

398

 

Statutory tax rate changes

 

96

 

 

 

2,536

 

 

 

242

 

2017 Tax Reform Act

 

(217

)

 

 

32,705

 

 

 

 

Other

 

209

 

 

 

(321

)

 

 

431

 

Total provision for income taxes

$

7,991

 

 

$

49,091

 

 

$

26,494

 

 

Significant Portions of Deferred Tax Assets and Liabilities Due to Temporary Differences The temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands):

 

December 31,

 

 

2018

 

 

2017

 

Deferred tax assets:

 

 

 

 

 

 

 

Net operating loss and tax credit carryforwards

$

34,565

 

 

$

33,803

 

Valuation allowance

 

(32,299

)

 

 

(32,443

)

Accrued expenses

 

9,500

 

 

 

9,938

 

Deferred revenue and customer liabilities

 

4,138

 

 

 

4,544

 

Depreciation and amortization

 

1,693

 

 

 

1,628

 

Other

 

413

 

 

 

229

 

 

 

18,010

 

 

 

17,699

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Depreciation and amortization

 

(13,199

)

 

 

(12,999

)

Deferred statutory income

 

(838

)

 

 

(938

)

Accrued liabilities

 

(1,779

)

 

 

(2,849

)

Other

 

(253

)

 

 

(258

)

 

 

(16,069

)

 

 

(17,044

)

Net deferred tax assets

$

1,941

 

 

$

655

 

 

Schedule of Deferred Tax Assets and Liabilities Classifications

 

December 31,

 

 

2018

 

 

2017

 

Classified as follows:

 

 

 

 

 

 

 

Deferred charges and other assets (Note 14)

$

5,797

 

 

$

6,657

 

Other long-term liabilities

 

(3,856

)

 

 

(6,002

)

Net deferred tax assets

$

1,941

 

 

$

655

 

 

Reconciliation of Amounts of Unrecognized Net Tax Benefits

The tabular reconciliation of the amounts of unrecognized net tax benefits is presented below (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Balance at the beginning of the period

$

1,342

 

 

$

8,531

 

 

$

8,116

 

Current period tax position increases

 

2,950

 

 

 

 

 

 

 

Decreases from settlements with tax authorities

 

(191

)

 

 

(10,865

)

 

 

 

Decreases due to lapse in applicable statute of limitations

 

(1,310

)

 

 

(466

)

 

 

 

Foreign currency translation increases (decreases)

 

(71

)

 

 

4,142

 

 

 

415

 

Balance at the end of the period

$

2,720

 

 

$

1,342

 

 

$

8,531

 

v3.10.0.1
Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Numbers of Shares Used in Earnings Per Share Computation

The numbers of shares used in the earnings per share computation are as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

42,090

 

 

 

41,822

 

 

 

41,847

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of stock appreciation rights, restricted

   stock, restricted stock units and shares held in

   rabbi trust

 

156

 

 

 

319

 

 

 

392

 

Total weighted average diluted shares outstanding

 

42,246

 

 

 

42,141

 

 

 

42,239

 

Anti-dilutive shares excluded from the diluted earnings

   per share calculation

 

44

 

 

 

46

 

 

 

20

 

Shares Repurchased

The shares repurchased under the Company’s share repurchase programs were as follows (none in 2018 and 2017) (in thousands, except per share amounts):

 

 

Total Number of Shares

 

 

Range of Prices Paid Per Share

 

 

Total Cost of Shares

 

For the Year Ended

Repurchased

 

 

Low

 

 

High

 

 

Repurchased

 

December 31, 2016

 

390

 

 

$

27.81

 

 

$

30.00

 

 

$

11,144

 

v3.10.0.1
Commitments and Loss Contingency (Tables)
12 Months Ended
Dec. 31, 2018
Commitments And Contingencies Disclosure [Abstract]  
Rental Expense under Operating Leases Rental expense, primarily included in “General and administrative” in the accompanying Consolidated Statements of Operations, under operating leases was as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Rental expense

$

67,980

 

 

$

59,906

 

 

$

55,584

 

 

Schedule of Future Minimum Rental Payments for Operating Leases

The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of December 31, 2018 (in thousands):

 

 

Amount

 

2019

$

53,071

 

2020

 

48,770

 

2021

 

43,324

 

2022

 

34,063

 

2023

 

22,583

 

2024 and thereafter

 

51,456

 

 

$

253,267

 

Schedule of Future Minimum Purchases Remaining under Agreements

The following is a schedule of future minimum purchases remaining under the agreements as of December 31, 2018 (in thousands):

 

 

Amount

 

2019

$

61,281

 

2020

 

16,308

 

2021

 

2,216

 

2022

 

1,021

 

2023

 

525

 

2024 and thereafter

 

 

 

$

81,351

 

v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits (Tables)
12 Months Ended
Dec. 31, 2018
Compensation And Retirement Disclosure [Abstract]  
Reconciliation of the Change in the Benefit Obligation

The following table provides a reconciliation of the change in the benefit obligation for the Pension Plans and the net amount recognized, included in “Other long-term liabilities,” in the accompanying Consolidated Balance Sheets (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Balance at the beginning of the period

$

3,642

 

 

$

3,551

 

Service cost

 

448

 

 

 

443

 

Interest cost

 

196

 

 

 

194

 

Actuarial (gains) losses

 

(783

)

 

 

(521

)

Benefits paid

 

(32

)

 

 

(3

)

Effect of foreign currency translation

 

(189

)

 

 

(22

)

Balance at the end of the period

$

3,282

 

 

$

3,642

 

 

 

 

 

 

 

 

 

Unfunded status

 

(3,282

)

 

 

(3,642

)

Net amount recognized

$

(3,282

)

 

$

(3,642

)

Benefit Obligations and Net Periodic Benefit Cost for the Pension Plans

The actuarial assumptions used to determine the benefit obligations and net periodic benefit cost for the Pension Plans were as follows:

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Discount rate

7.4-7.5%

 

 

5.5-5.6%

 

 

5.5-5.6%

 

Rate of compensation increase

 

2.0

%

 

 

2.0

%

 

 

2.0

%

Net Periodic Benefit Cost and Other Accumulated Comprehensive Income for Pension Plans

The following table provides information about the net periodic benefit cost and other accumulated comprehensive income for the Pension Plans (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Service cost

$

448

 

 

$

443

 

 

$

443

 

Interest cost

 

196

 

 

 

194

 

 

 

165

 

Recognized actuarial (gains)

 

(58

)

 

 

(43

)

 

 

(40

)

Net periodic benefit cost

 

586

 

 

 

594

 

 

 

568

 

Unrealized net actuarial (gains), net of tax

 

(2,256

)

 

 

(1,574

)

 

 

(1,126

)

Total amount recognized in net periodic benefit cost and

   accumulated other comprehensive income (loss)

$

(1,670

)

 

$

(980

)

 

$

(558

)

Estimated Future Benefit Payments for Expected Future Service

The estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands):

 

Years Ending December 31,

Amount

 

2019

$

331

 

2020

 

109

 

2021

 

108

 

2022

 

94

 

2023

 

130

 

2024 - 2028

 

1,035

 

Company's Contributions to Employee Retirement Savings Plans The Company’s contributions included in the accompanying Consolidated Statements of Operations were as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

401(k) plan contributions

$

1,612

 

 

$

1,502

 

 

$

969

 

 

Post-Retirement Benefit Obligation and Unrealized Gain (Losses) The postretirement benefit obligation included in “Other long-term liabilities” and the unrealized gains (losses) included in “Accumulated other comprehensive income” in the accompanying Consolidated Balance Sheets were as follows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Postretirement benefit obligation

$

12

 

 

$

15

 

Unrealized gains (losses) in AOCI (1)

 

40

 

 

 

120

 

 

(1) Unrealized gains (losses) are due to changes in discount rates related to the postretirement obligation.

v3.10.0.1
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2018
Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company The following table summarizes the stock-based compensation expense (primarily in the Americas), income tax benefits related to the stock-based compensation and excess tax benefits for all grants of stock-based compensation, both plan related and non-plan related (in thousands):

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Stock-based compensation (expense) (1)

 

$

(7,543

)

 

$

(7,621

)

 

$

(10,779

)

Income tax benefit (2)

 

 

1,810

 

 

 

2,858

 

 

 

4,150

 

Excess tax benefit from stock-based compensation (3)

 

 

 

 

 

 

 

 

2,098

 

 

 

(1)

Included in "General and administrative" costs in the accompanying Consolidated Statements of Operations.

 

(2)

Included in "Income taxes" in the accompanying Consolidated Statements of Operations.

 

(3)

Included in "Additional paid-in capital" in the accompanying Consolidated Statements of Changes in Shareholders' Equity.

Stock Appreciation Rights (SARs) [Member] | 2011 Equity Incentive Plan [Member]  
Summary of Assumptions Used to Estimate Fair Value

The following table summarizes the assumptions used to estimate the fair value of SARs granted:

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Expected volatility

 

 

21.4

%

 

 

19.3

%

 

 

25.3

%

Weighted-average volatility

 

 

21.4

%

 

 

19.3

%

 

 

25.3

%

Expected dividend rate

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Expected term (in years)

 

 

5.0

 

 

 

5.0

 

 

 

5.0

 

Risk-free rate

 

 

2.5

%

 

 

1.9

%

 

 

1.5

%

Summary of Stock Appreciation Rights Activity

The following table summarizes SARs activity as of December 31, 2018 and for the year then ended:

 

Stock Appreciation Rights

 

Shares (000s)

 

 

Weighted Average Exercise Price

 

 

Weighted Average Remaining Contractual Term (in years)

 

 

Aggregate Intrinsic Value (000s)

 

Balance at the beginning of the period

 

 

734

 

 

$

 

 

 

 

 

 

 

 

 

Granted

 

 

333

 

 

$

 

 

 

 

 

 

 

 

 

Exercised

 

 

(62

)

 

$

 

 

 

 

 

 

 

 

 

Forfeited or expired

 

 

(43

)

 

$

 

 

 

 

 

 

 

 

 

Balance at the end of the period

 

 

962

 

 

$

 

 

 

8.1

 

 

$

167

 

Vested or expected to vest at the end of the period

 

 

962

 

 

$

 

 

 

8.1

 

 

$

167

 

Exercisable at the end of the period

 

 

344

 

 

$

 

 

 

7.0

 

 

$

167

 

Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Vested

The following table summarizes information regarding SARs granted and exercised (in thousands, except per SAR amounts):

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Number of SARs granted

 

 

333

 

 

 

396

 

 

 

323

 

Weighted average grant-date fair value per SAR

 

$

6.84

 

 

$

6.24

 

 

$

7.68

 

Intrinsic value of SARs exercised

 

$

320

 

 

$

1,763

 

 

$

1,691

 

Fair value of SARs vested

 

$

1,950

 

 

$

1,846

 

 

$

1,520

 

Summary of Nonvested Common Stock Units and Share Awards

The following table summarizes nonvested SARs activity as of December 31, 2018 and for the year then ended:

 

Nonvested Stock Appreciation Rights

 

Shares (000s)

 

 

Weighted Average Grant-Date Fair Value

 

Balance at the beginning of the period

 

 

600

 

 

$

6.88

 

Granted

 

 

333

 

 

$

6.84

 

Vested

 

 

(272

)

 

$

7.16

 

Forfeited or expired

 

 

(43

)

 

$

6.75

 

Balance at the end of the period

 

 

618

 

 

$

6.74

 

Restricted Shares and Restricted Stock Units (RSU's) [Member] | 2011 Equity Incentive Plan [Member]  
Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Vested

The following table summarizes information regarding restricted shares/RSUs granted and vested (in thousands, except per restricted share/RSU amounts):

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Number of restricted shares/RSUs granted

 

 

492

 

 

 

480

 

 

 

451

 

Weighted average grant-date fair value per restricted share/RSU

 

$

28.16

 

 

$

29.42

 

 

$

30.32

 

Fair value of restricted shares/RSUs vested

 

$

8,342

 

 

$

6,868

 

 

$

6,785

 

Summary of Nonvested Common Stock Units and Share Awards

The following table summarizes nonvested restricted shares/RSUs activity as of December 31, 2018 and for the year then ended:

 

Nonvested Restricted Shares and RSUs

 

Shares (000s)

 

 

Weighted Average Grant-Date Fair Value

 

Balance at the beginning of the period

 

 

1,109

 

 

$

28.50

 

Granted

 

 

492

 

 

$

28.16

 

Vested

 

 

(323

)

 

$

25.78

 

Forfeited or expired

 

 

(134

)

 

$

28.23

 

Balance at the end of the period

 

 

1,144

 

 

$

29.15

 

Restricted Shares and Restricted Stock Units (RSU's) [Member] | Acquisition-Related Restricted Shares [Member] | Symphony [Member]  
Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Vested

The following table summarizes information regarding acquisition-related RSUs granted and vested (in thousands, except per restricted share/RSU amounts):

 

 

Year Ended December 31, 2018

 

Number of restricted shares/RSUs granted

 

 

124

 

Weighted average grant-date fair value per restricted share/RSU

 

$

30.67

 

Fair value of restricted shares/RSUs vested

 

$

 

Summary of Nonvested Common Stock Units and Share Awards

The following table summarizes nonvested acquisition-related RSUs activity as of December 31, 2018 and for the year then ended:

Nonvested Restricted Shares and RSUs

 

Shares (000s)

 

 

Weighted Average Grant-Date Fair Value

 

Balance at the beginning of the period

 

 

 

 

$

 

Granted

 

 

124

 

 

$

30.67

 

Vested

 

 

 

 

$

 

Forfeited or expired

 

 

 

 

$

 

Balance at the end of the period

 

 

124

 

 

$

30.67

 

Common Stock Awards [Member] | Non-Employee Director Fee Plan [Member]  
Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Vested

The following table summarizes information regarding common stock share awards granted and vested (in thousands, except per share award amounts):

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Number of share awards granted

 

 

34

 

 

 

24

 

 

 

32

 

Weighted average grant-date fair value per share award

 

$

27.68

 

 

$

32.93

 

 

$

29.04

 

Fair value of share awards vested

 

$

880

 

 

$

850

 

 

$

850

 

Summary of Nonvested Common Stock Units and Share Awards

The following table summarizes nonvested common stock share award activity as of December 31, 2018 and for the year then ended:

 

Nonvested Common Stock Share Awards

 

Shares (000s)

 

 

Weighted Average Grant-Date Fair Value

 

Balance at the beginning of the period

 

 

8

 

 

$

32.21

 

Granted

 

 

34

 

 

$

27.68

 

Vested

 

 

(31

)

 

$

28.80

 

Forfeited or expired

 

 

(2

)

 

$

27.68

 

Balance at the end of the period

 

 

9

 

 

$

27.72

 

Common Stock Awards [Member] | Deferred Compensation Plan [Member]  
Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Vested

The following table summarizes information regarding shares of common stock granted and vested (in thousands, except per common stock amounts):

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Number of shares of common stock granted

 

 

16

 

 

 

13

 

 

 

8

 

Weighted average grant-date fair value per common stock

 

$

28.48

 

 

$

30.49

 

 

$

29.36

 

Fair value of common stock vested

 

$

315

 

 

$

334

 

 

$

255

 

Cash used to settle the obligation

 

$

804

 

 

$

1,134

 

 

$

396

 

Summary of Nonvested Common Stock Units and Share Awards

The following table summarizes nonvested common stock activity as of December 31, 2018 and for the year then ended:

 

Nonvested Common Stock

 

Shares (000s)

 

 

Weighted Average Grant-Date Fair Value

 

Balance at the beginning of the period

 

 

3

 

 

$

29.56

 

Granted

 

 

16

 

 

$

28.48

 

Vested

 

 

(11

)

 

$

28.41

 

Forfeited or expired

 

 

 

 

$

 

Balance at the end of the period

 

 

8

 

 

$

29.01

 

v3.10.0.1
Segments and Geographic Information (Tables)
12 Months Ended
Dec. 31, 2018
Company's Reportable Segments

Information about the Company’s reportable segments is as follows (in thousands):

 

 

Americas

 

 

EMEA

 

 

Other (1)

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

1,330,638

 

 

$

294,954

 

 

$

95

 

 

$

1,625,687

 

Percentage of revenues

 

81.9

%

 

 

18.1

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

48,378

 

 

$

5,952

 

 

$

3,020

 

 

$

57,350

 

Amortization of intangibles

$

14,287

 

 

$

1,255

 

 

$

 

 

$

15,542

 

Income (loss) from operations

$

108,021

 

 

$

16,507

 

 

$

(61,326

)

 

$

63,202

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(6,285

)

 

 

(6,285

)

Income taxes

 

 

 

 

 

 

 

 

 

(7,991

)

 

 

(7,991

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

48,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

1,325,643

 

 

$

260,283

 

 

$

82

 

 

$

1,586,008

 

Percentage of revenues

 

83.6

%

 

 

16.4

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

47,730

 

 

$

5,211

 

 

$

3,031

 

 

$

55,972

 

Amortization of intangibles

$

20,144

 

 

$

938

 

 

$

 

 

$

21,082

 

Income (loss) from operations

$

136,386

 

 

$

16,067

 

 

$

(65,411

)

 

$

87,042

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(5,735

)

 

 

(5,735

)

Income taxes

 

 

 

 

 

 

 

 

 

(49,091

)

 

 

(49,091

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

32,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

1,220,818

 

 

$

239,089

 

 

$

130

 

 

$

1,460,037

 

Percentage of revenues

 

83.6

%

 

 

16.4

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

42,436

 

 

$

4,532

 

 

$

2,045

 

 

$

49,013

 

Amortization of intangibles

$

18,329

 

 

$

1,048

 

 

$

 

 

$

19,377

 

Income (loss) from operations

$

140,256

 

 

$

18,380

 

 

$

(66,263

)

 

$

92,373

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(3,489

)

 

 

(3,489

)

Income taxes

 

 

 

 

 

 

 

 

 

(26,494

)

 

 

(26,494

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

62,390

 

 

 

(1)

Other items (including corporate and other costs, other income and expense, and income taxes) are shown for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the years ended December 31, 2018, 2017 and 2016.  Inter-segment revenues are not material to the Americas and EMEA segment results.

Operations by Geographic Location

The following table represents a disaggregation of revenue from contracts with customers by geographic location for the years ended December 31, 2018, 2017 and 2016, by the reportable segment for each category (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

United States

$

668,580

 

 

$

644,870

 

 

$

578,753

 

The Philippines

 

231,966

 

 

 

241,211

 

 

 

235,333

 

Costa Rica

 

127,963

 

 

 

132,542

 

 

 

124,823

 

Canada

 

102,353

 

 

 

112,367

 

 

 

115,226

 

El Salvador

 

81,156

 

 

 

75,800

 

 

 

69,937

 

People's Republic of China

 

34,942

 

 

 

38,880

 

 

 

34,851

 

Australia

 

31,811

 

 

 

28,442

 

 

 

24,267

 

Mexico

 

24,998

 

 

 

25,496

 

 

 

18,167

 

Colombia

 

18,067

 

 

 

16,042

 

 

 

8,901

 

Other

 

8,802

 

 

 

9,993

 

 

 

10,560

 

Total Americas

 

1,330,638

 

 

 

1,325,643

 

 

 

1,220,818

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

Germany

 

91,703

 

 

 

81,634

 

 

 

78,982

 

Sweden

 

55,491

 

 

 

56,843

 

 

 

59,313

 

United Kingdom

 

57,308

 

 

 

42,247

 

 

 

38,167

 

Romania

 

34,205

 

 

 

27,924

 

 

 

21,387

 

Other

 

56,247

 

 

 

51,635

 

 

 

41,240

 

Total EMEA

 

294,954

 

 

 

260,283

 

 

 

239,089

 

Total Other

 

95

 

 

 

82

 

 

 

130

 

 

$

1,625,687

 

 

$

1,586,008

 

 

$

1,460,037

 

The Company’s long-lived assets, including property and equipment, net and intangibles, net, by geographic location were as follows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Americas:

 

 

 

 

 

 

 

United States

$

197,167

 

 

$

219,476

 

The Philippines

 

9,840

 

 

 

15,199

 

Costa Rica

 

6,511

 

 

 

9,170

 

Canada

 

4,654

 

 

 

6,400

 

El Salvador

 

4,810

 

 

 

4,048

 

People's Republic of China

 

3,379

 

 

 

3,840

 

Australia

 

13,693

 

 

 

1,256

 

Mexico

 

4,077

 

 

 

2,812

 

Colombia

 

2,371

 

 

 

2,710

 

Other

 

2,882

 

 

 

1,772

 

Total Americas

 

249,384

 

 

 

266,683

 

EMEA:

 

 

 

 

 

 

 

Germany

 

3,395

 

 

 

2,460

 

Sweden

 

1,222

 

 

 

1,171

 

United Kingdom

 

28,036

 

 

 

3,016

 

Romania

 

1,965

 

 

 

1,929

 

Other

 

8,468

 

 

 

7,241

 

Total EMEA

 

43,086

 

 

 

15,817

 

Total Other

 

16,979

 

 

 

18,567

 

 

$

309,449

 

 

$

301,067

 

Goodwill by segment was as follows (in thousands):

 

 

December 31,

 

 

2018

 

 

2017

 

Americas

$

255,436

 

 

$

258,496

 

EMEA

 

47,081

 

 

 

10,769

 

 

$

302,517

 

 

$

269,265

 

Other than AT&T Corporation [Member]  
Revenues by Segment from Major Customers

Other than AT&T, total revenues by segment of the Company’s clients that each individually represents 10% or greater of that segment’s revenues in each of the periods were as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

Americas

$

 

 

0.0%

 

 

$

 

 

0.0%

 

 

$

 

 

0.0%

 

EMEA

 

104,856

 

 

35.5%

 

 

 

104,829

 

 

40.3%

 

 

 

96,115

 

 

40.2%

 

 

$

104,856

 

 

6.4%

 

 

$

104,829

 

 

6.6%

 

 

$

96,115

 

 

6.6%

 

AT&T Corporation [Member]  
Revenues by Segment from Major Customers

Total revenues by segment from AT&T Corporation (“AT&T”), a major provider of communication services for which the Company provides various customer support services over several distinct lines of AT&T businesses, were as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

Americas

$

164,793

 

 

12.4%

 

 

$

220,010

 

 

16.6%

 

 

$

239,033

 

 

19.6%

 

EMEA

 

179

 

 

0.1%

 

 

 

 

 

0.0%

 

 

 

 

 

0.0%

 

 

$

164,972

 

 

10.1%

 

 

$

220,010

 

 

13.9%

 

 

$

239,033

 

 

16.4%

 

Next Largest Client [Member]  
Revenues by Segment from Major Customers

Total revenues by segment from the Company’s next largest client, which was in the financial services vertical in each of the years, were as follows (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

 

Amount

 

 

% of Revenues

 

Americas

$

105,852

 

 

8.0%

 

 

$

109,475

 

 

8.3%

 

 

$

90,508

 

 

7.4%

 

EMEA

 

 

 

0.0%

 

 

 

 

 

0.0%

 

 

 

 

 

0.0%

 

 

$

105,852

 

 

6.5%

 

 

$

109,475

 

 

6.9%

 

 

$

90,508

 

 

6.2%

 

v3.10.0.1
Other Income (Expense) (Tables)
12 Months Ended
Dec. 31, 2018
Other Income And Expenses [Abstract]  
Other Income (Expense), Net

Other income (expense), net consists of the following (in thousands):

 

 

Years Ended December 31,

 

 

2018

 

 

2017

 

 

2016

 

Foreign currency transaction gains (losses)

$

2,029

 

 

$

(548

)

 

$

3,348

 

Gains (losses) on derivative instruments not designated as hedges

 

(1,751

)

 

 

143

 

 

 

(2,270

)

Gains (losses) on investments held in rabbi trust

 

(867

)

 

 

1,619

 

 

 

582

 

Other miscellaneous income (expense)

 

(1,659

)

 

 

44

 

 

 

(186

)

 

$

(2,248

)

 

$

1,258

 

 

$

1,474

 

 

v3.10.0.1
Overview and Summary of Significant Accounting Policies - Additional Information (Detail)
$ in Thousands
1 Months Ended 12 Months Ended
Nov. 01, 2018
Oct. 18, 2018
Jul. 09, 2018
May 31, 2017
Apr. 24, 2017
Aug. 31, 2018
USD ($)
Jul. 31, 2017
USD ($)
Dec. 31, 2018
USD ($)
Segment
CompensationPlan
Dec. 31, 2017
USD ($)
Jan. 01, 2019
USD ($)
Jan. 01, 2018
USD ($)
Jan. 01, 2017
USD ($)
Dec. 31, 2016
USD ($)
Jan. 01, 2016
USD ($)
Dec. 31, 2015
USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Number of reportable segments | Segment               2              
Statutory federal income tax rate               21.00% 35.00%            
Cash and cash equivalents               $ 128,697 $ 343,734       $ 266,675   $ 235,358
Tax position measurement               Greater than 50%              
Equity method investment               $ 9,702 10,341            
Equity method investment payment               $ 5,000 5,012            
Number of stock-based compensation plan | CompensationPlan               3              
Operating lease future undiscounted minimum lease payments               $ 253,267              
Increase in cash, cash equivalents and restricted cash               $ 130,231 344,805       267,594   $ 236,245
Accounting Standards Update 2016-18 [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Increase in cash, cash equivalents and restricted cash                 1,100   $ 1,100 $ 900 $ 900 $ 900  
Minimum [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Non-deliverable forward contracts and options expiring period               1 month              
Minimum [Member] | Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Operating lease right-of-use asset                   $ 212,000          
Operating lease liability                   225,000          
Maximum [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Non-deliverable forward contracts and options expiring period               24 months              
Maximum [Member] | Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Operating lease right-of-use asset                   217,000          
Operating lease liability                   $ 230,000          
XSell Technologies Inc [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Equity method investment, ownership percentage             32.80%                
Equity method investment payment           $ 5,000 $ 5,000                
XSell Technologies Inc [Member] | Other Income (Expense), Net [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Income (loss) from equity method investments               $ (700) (100)            
Deferred Charges and Other Assets [Member] | XSell Technologies Inc [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Equity method investment             $ 10,000 $ 9,200 9,800            
Equipment [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Useful life of equipment               5 years              
International Operations [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Cash and cash equivalents               $ 115,700 $ 335,100            
Symphony [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Effective date of acquisition Nov. 01, 2018                            
Date of Acquisition agreement   Oct. 18, 2018                          
WhistleOut [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Effective date of acquisition     Jul. 09, 2018                        
Global 2000 Telecommunications Services Provider [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Effective date of acquisition       May 31, 2017                      
Date of Acquisition agreement         Apr. 24, 2017                    
Clearlink [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Effective date of acquisition               Apr. 01, 2016              
Date of Acquisition agreement               Mar. 06, 2016              
Clearlink [Member] | Measurement Input, Discount Rate [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Fair value discount rate               10.00%              
Qelp [Member] | Measurement Input, Discount Rate [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Fair value discount rate               14.00%              
US Federal Rate Prior To The 2017 Tax Reform Act [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Statutory federal income tax rate                 35.00%            
US 2017 Tax Reform Act [Member]                              
Organization Consolidation And Presentation Of Financial Statements [Line Items]                              
Statutory federal income tax rate               21.00%              
v3.10.0.1
Overview and Summary of Significant Accounting Policies - Summary of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Restricted Cash and Cash Equivalents Items [Line Items]        
Cash and cash equivalents $ 128,697 $ 343,734 $ 266,675 $ 235,358
Cash and Cash Equivalents and Restricted Cash 130,231 344,805 267,594 236,245
Other Current Assets [Member]        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash included in "Other current assets" 149 154 160 207
Deferred Charges and Other Assets [Member]        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash included in "Deferred charges and other assets" $ 1,385 $ 917 $ 759 $ 680
v3.10.0.1
Overview and Summary of Significant Accounting Policies - Schedule of Total Advertising Costs Included in Condensed Consolidated Statements of Operations (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Direct Salaries and Related Costs [Member]      
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Customer-acquisition advertising costs $ 49,657 $ 36,659 $ 28,116
General and Administrative [Member]      
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Customer-acquisition advertising costs $ 60 $ 115  
v3.10.0.1
Overview and Summary of Significant Accounting Policies - Schedule of Impact of Adopting ASU 2017-07 on Statement of Operations (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]      
Direct salaries and related costs $ 1,072,907 $ 1,039,677 $ 947,593
General and administrative 407,285 376,825 351,681
Income from operations 63,202 87,042 92,373
Other income (expense), net $ (6,285) (5,735) (3,489)
As Previously Reported [Member]      
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]      
Direct salaries and related costs   1,039,790 947,677
General and administrative   376,863 351,722
Income from operations   86,891 92,248
Other income (expense), net   (5,584) (3,364)
Accounting Standards Update 2017-07 [Member] | Adjustments Due to the Adoption of ASU 2017-07 [Member]      
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]      
Direct salaries and related costs   (113) (84)
General and administrative   (38) (41)
Income from operations   151 125
Other income (expense), net   $ (151) $ (125)
v3.10.0.1
Revenues - Additional Information (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Jan. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Revenue, performance obligation satisfied over time, method used, description The Company recognizes revenues over time using output methods such as a per minute, per hour, per call, per transaction or per time and materials basis.      
Stated contract term 30 days to six years      
Non-cancelable contract term Varying periods typically up to 180 days      
Description of payment terms The Company’s primary billing terms are that payment is due within 30 or 60 days of the invoice date.      
Percentage of revenue 100.00% 100.00% 100.00%  
Deferred revenue recognized in the period $ 4,400      
Revenue remaining performance obligation expected timing of satisfaction explanation The Company expects to recognize the majority of its deferred revenue as of December 31, 2018 over the next 180 days.      
Refund liabilities timing of resolution explanation Refund liabilities are generally resolved in 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency.      
Other Revenues [Member]        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Percentage of revenue 1.00% 0.60% 0.80%  
Accounting Standards Update 2014-09 [Member]        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Retained earnings $ 3,019      
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Retained earnings $ 3,019     $ 3,000
v3.10.0.1
Revenues - Summary of Impact of Adoption of Accounting Standards (Detail) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Jan. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Receivables, net $ 347,425 $ 341,958   $ 342,783
Deferred charges and other assets 43,364 29,193   31,238
Income taxes payable 1,433 2,606   3,303
Deferred revenue and customer liabilities 30,176 34,717   33,669
Other long-term liabilities 31,750 22,039   22,241
Retained earnings 598,788 546,843   549,862
Other current assets 16,761 19,743    
Other accrued expenses and current liabilities 31,235 30,888    
Revenues 1,625,687 1,586,008 $ 1,460,037  
Direct salaries and related costs 1,072,907 1,039,677 947,593  
Income from operations 63,202 87,042 92,373  
Income before income taxes 56,917 81,307 88,884  
Income taxes 7,991 49,091 26,494  
Net income $ 48,926 $ 32,216 $ 62,390  
Net income per common share:        
Basic $ 1.16 $ 0.77 $ 1.49  
Diluted $ 1.16 $ 0.76 $ 1.48  
Effect of Adoption Increase (Decrease) [Member] | Accounting Standards Update 2014-09 [Member]        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Receivables, net $ 2,450     825
Deferred charges and other assets 15,966     2,045
Income taxes payable 3,521     697
Deferred revenue and customer liabilities (2,433)     (1,048)
Other long-term liabilities 3,729     202
Retained earnings 13,577     $ 3,019
Other current assets 113      
Other accrued expenses and current liabilities 135      
Revenues 16,956      
Direct salaries and related costs 3,240      
Income from operations 13,716      
Income before income taxes 13,716      
Income taxes 3,158      
Net income $ 10,558      
Net income per common share:        
Basic $ 0.25      
Diluted $ 0.25      
Balances Without the Impact of the ASC 606 Adoption [Member] | Accounting Standards Update 2014-09 [Member]        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Receivables, net $ 344,975      
Deferred charges and other assets 27,398      
Income taxes payable (2,088)      
Deferred revenue and customer liabilities 32,609      
Other long-term liabilities 28,021      
Retained earnings 585,211      
Other current assets 16,648      
Other accrued expenses and current liabilities 31,100      
Revenues 1,608,731      
Direct salaries and related costs 1,069,667      
Income from operations 49,486      
Income before income taxes 43,201      
Income taxes 4,833      
Net income $ 38,368      
Net income per common share:        
Basic $ 0.91      
Diluted $ 0.91      
v3.10.0.1
Revenues - Revenues from Contracts with Customers Disaggregated by Service Type (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Disaggregation of Revenue [Line Items]      
Revenues $ 1,625,687 $ 1,586,008 $ 1,460,037
Americas [Member]      
Disaggregation of Revenue [Line Items]      
Revenues 1,330,638 1,325,643 1,220,818
Americas [Member] | Customer Engagement Solutions and Services [Member]      
Disaggregation of Revenue [Line Items]      
Revenues 1,329,614 1,324,534 1,219,824
Americas [Member] | Other Revenues [Member]      
Disaggregation of Revenue [Line Items]      
Revenues 1,024 1,109 994
EMEA [Member]      
Disaggregation of Revenue [Line Items]      
Revenues 294,954 260,283 239,089
EMEA [Member] | Customer Engagement Solutions and Services [Member]      
Disaggregation of Revenue [Line Items]      
Revenues 280,437 252,423 228,667
EMEA [Member] | Other Revenues [Member]      
Disaggregation of Revenue [Line Items]      
Revenues 14,517 7,860 10,422
Other Segment [Member]      
Disaggregation of Revenue [Line Items]      
Revenues 95 82 130
Other Segment [Member] | Other Revenues [Member]      
Disaggregation of Revenue [Line Items]      
Revenues $ 95 $ 82 $ 130
v3.10.0.1
Revenues - Summary of Trade Accounts Receivable, Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Trade accounts receivable, net, noncurrent $ 15,948   $ 0
Trade accounts receivable, net 351,325 $ 334,092  
Receivables Net, Current [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Trade accounts receivable, net, current 335,377 332,014  
Deferred Charges and Other Assets [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Trade accounts receivable, net, noncurrent $ 15,948 $ 2,078  
v3.10.0.1
Revenues - Summary of Trade Accounts Receivable, Net (Parenthetical) (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Trade accounts receivable, net, noncurrent $ 15,948   $ 0
Accounting Standards Update 2014-09 [Member] | Effect of Adoption Increase (Decrease) [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Trade accounts receivable, net, current   $ 800  
Trade accounts receivable, net, noncurrent   $ 2,100  
v3.10.0.1
Revenues - Components of Deferred Revenue and Customer Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Schedule of Deferred Revenue and Customer Liabilities [Line Items]      
Deferred revenue and customer liabilities $ 30,176 $ 33,669 $ 34,717
Deferred Revenue and Customer Liabilities [Member]      
Schedule of Deferred Revenue and Customer Liabilities [Line Items]      
Deferred revenue 3,655 4,598  
Customer arrangements with termination rights 16,404 21,755  
Estimated refund liabilities $ 10,117 $ 7,316  
v3.10.0.1
Revenues - Components of Deferred Revenue and Customer Liabilities (Parenthetical) (Detail)
$ in Millions
Jan. 01, 2018
USD ($)
Accounting Standards Update 2014-09 [Member] | Effect of Adoption Increase (Decrease) [Member]  
Deferred Revenue and Customer Liabilities [Abstract]  
Estimated refund liabilities $ 1.0
v3.10.0.1
Acquisitions - Additional Information (Detail)
$ in Thousands, £ in Millions, $ in Millions
3 Months Ended 12 Months Ended
Nov. 01, 2018
USD ($)
Nov. 01, 2018
GBP (£)
Oct. 18, 2018
Jul. 09, 2018
USD ($)
Jul. 09, 2018
AUD ($)
May 31, 2017
USD ($)
Apr. 24, 2017
Apr. 01, 2016
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Business Acquisition [Line Items]                        
Proceeds from issuance of long-term debt                   $ 58,000 $ 8,000 $ 216,000
Goodwill, net                 $ 265,404 302,517 269,265 265,404
Americas [Member]                        
Business Acquisition [Line Items]                        
Goodwill, net                 255,842 $ 255,436 258,496 $ 255,842
Symphony [Member]                        
Business Acquisition [Line Items]                        
Date of Acquisition agreement     Oct. 18, 2018                  
Aggregate purchase price $ 67,600 £ 52.5                    
Effective date of acquisition Nov. 01, 2018 Nov. 01, 2018                    
Earnout period 3 years 3 years                    
Earnout payable in RSUs | £   £ 3.0                    
Payments to acquire businesses, gross $ 57,600 44.6                    
Deferred purchase price 10,000 £ 7.9                    
Business combination consideration transferred liabilities incurred payment terms                   equal installments over the next three years    
Property and equipment acquired 2,200                      
Goodwill, net 36,400                 $ 36,900    
Symphony [Member] | Customer Relationships and Trade Names [Member]                        
Business Acquisition [Line Items]                        
Business combination intangible assets, primarily indefinite-lived domain names acquired 26,100                      
Symphony [Member] | Revolving Credit Facility [Member]                        
Business Acquisition [Line Items]                        
Proceeds from issuance of long-term debt $ 31,000                      
WhistleOut [Member]                        
Business Acquisition [Line Items]                        
Effective date of acquisition       Jul. 09, 2018 Jul. 09, 2018              
Earnout period       3 years 3 years              
Payments to acquire businesses, gross       $ 22,400 $ 30.2              
Business combination intangible assets, primarily indefinite-lived domain names acquired       16,500                
Property and equipment acquired       2,400                
Goodwill, net       2,200                
Earnout         $ 14.0              
WhistleOut [Member] | Revolving Credit Facility [Member]                        
Business Acquisition [Line Items]                        
Proceeds from issuance of long-term debt       $ 22,000                
Global 2000 Telecommunications Services Provider [Member]                        
Business Acquisition [Line Items]                        
Date of Acquisition agreement             Apr. 24, 2017          
Effective date of acquisition           May 31, 2017            
Global 2000 Telecommunications Services Provider [Member] | Americas [Member]                        
Business Acquisition [Line Items]                        
Date of Acquisition agreement             Apr. 24, 2017          
Effective date of acquisition           May 31, 2017            
Payments to acquire businesses, gross           $ 7,500            
Property and equipment acquired           6,000            
Global 2000 Telecommunications Services Provider [Member] | Customer Relationships [Member] | Americas [Member]                        
Business Acquisition [Line Items]                        
Intangibles acquired           $ 1,500            
Clearlink [Member]                        
Business Acquisition [Line Items]                        
Date of Acquisition agreement                   Mar. 06, 2016    
Aggregate purchase price               $ 207,908        
Effective date of acquisition                   Apr. 01, 2016    
Payments to acquire businesses, gross               209,186        
Goodwill, net                   $ 71,200    
Funds placed in escrow as security for indemnifications               $ 2,600        
Claims Asserted for Payment of Indemnification Obligations                     400  
Claim resolved by parties                     $ 200  
Measurement-Period Adjustments, Income taxes payable                 300      
Measurement-Period Adjustments, Goodwill                 $ 300      
Clearlink [Member] | Americas [Member]                        
Business Acquisition [Line Items]                        
Effective date of acquisition                   Apr. 01, 2016    
Percentage of outstanding membership units               100.00%        
Amortization period of deductible intangibles and goodwill               15 years        
v3.10.0.1
Acquisitions - Summary of Consideration Paid and Transferred (Detail) - Clearlink [Member]
$ in Thousands
Apr. 01, 2016
USD ($)
Business Acquisition [Line Items]  
Cash $ 209,186
Working capital adjustment (1,278)
Total Consideration paid $ 207,908
v3.10.0.1
Acquisitions - Schedule of Revenues and Net Income (Loss) (Detail) - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Business Acquisition [Line Items]        
Net income   $ 48,926 $ 32,216 $ 62,390
Clearlink [Member] | Americas [Member]        
Business Acquisition [Line Items]        
Revenues $ 123,289      
Net income $ 1,563      
v3.10.0.1
Acquisitions - Schedule of Unaudited Pro Forma Combined Revenues and Net Earnings (Detail) - Clearlink [Member]
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2016
USD ($)
$ / shares
Business Acquisition [Line Items]  
Revenues | $ $ 1,493,866
Net income | $ $ 65,662
Net income per common share:  
Basic | $ / shares $ 1.57
Diluted | $ / shares $ 1.55
v3.10.0.1
Acquisitions - Merger and Integration Costs (Detail) - Clearlink [Member] - General and Administrative [Member]
$ in Thousands
12 Months Ended
Dec. 31, 2016
USD ($)
Business Acquisition [Line Items]  
Merger and integration costs $ 4,634
Severance Costs [Member] | Americas [Member]  
Business Acquisition [Line Items]  
Merger and integration costs 135
Transaction and Integration Costs [Member]  
Business Acquisition [Line Items]  
Merger and integration costs 4,499
Transaction and Integration Costs [Member] | Americas [Member]  
Business Acquisition [Line Items]  
Merger and integration costs 29
Transaction and Integration Costs [Member] | Other Segment [Member]  
Business Acquisition [Line Items]  
Merger and integration costs $ 4,470
v3.10.0.1
Costs Associated with Exit or Disposal Activities - Cumulative Total Costs Expected and Incurred to Date Related to Cash and Non-Cash Expenditures Resulting from Exit Plan (Detail) - 2018 Exit Plan [Member] - Americas [Member]
$ in Thousands
Dec. 31, 2018
USD ($)
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Incurred To Date $ 17,416
Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Incurred To Date 7,077
Severance and Related Costs [Member] | General and Administrative [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Incurred To Date 1,035
Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Incurred To Date 3,429
Non-Cash Impairment Charges [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Incurred To Date $ 5,875
v3.10.0.1
Costs Associated with Exit or Disposal Activities - Additional Information (Detail)
$ in Millions
9 Months Ended 12 Months Ended
Dec. 31, 2018
USD ($)
Dec. 31, 2018
USD ($)
Restructuring Cost And Reserve [Line Items]    
Cash payment related to restructuring $ 9.3 $ 9.3
Increase (decrease) restructuring and related cost expected cost $ 1.4  
Americas [Member] | 2018 Exit Plan [Member]    
Restructuring Cost And Reserve [Line Items]    
Lease termination date   Jun. 30, 2021
v3.10.0.1
Costs Associated with Exit or Disposal Activities - Summary of Accrued Liability and Related Charges (Detail) - Americas [Member] - 2018 Exit Plan [Member]
$ in Thousands
12 Months Ended
Dec. 31, 2018
USD ($)
Restructuring Reserve [Roll Forward]  
Balance at the beginning of the period $ 0
Cash payments (9,290)
Balance sheet reclassifications 335
Balance at the end of the period 2,586
Direct Salaries and Related Costs [Member]  
Restructuring Reserve [Roll Forward]  
Restructuring charges 3,429
General and Administrative [Member]  
Restructuring Reserve [Roll Forward]  
Restructuring charges 8,112
Lease Obligations and Facility Exit Costs [Member]  
Restructuring Reserve [Roll Forward]  
Balance at the beginning of the period 0
Cash payments (5,643)
Balance sheet reclassifications 335
Balance at the end of the period 1,769
Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member]  
Restructuring Reserve [Roll Forward]  
Restructuring charges 7,077
Severance and Related Costs [Member]  
Restructuring Reserve [Roll Forward]  
Balance at the beginning of the period 0
Cash payments (3,647)
Balance at the end of the period 817
Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member]  
Restructuring Reserve [Roll Forward]  
Restructuring charges 3,429
Severance and Related Costs [Member] | General and Administrative [Member]  
Restructuring Reserve [Roll Forward]  
Restructuring charges $ 1,035
v3.10.0.1
Costs Associated with Exit or Disposal Activities - Summary of Company's Short-term and Long-term Accrued Liability with Exit Plan (Detail) - 2018 Exit Plan [Member] - Americas [Member] - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve $ 2,586 $ 0
Lease Obligations and Facility Exit Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve 1,769 0
Severance and Related Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring reserve 817 $ 0
Accounts Payable [Member] | Lease Obligations and Facility Exit Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Short-term accrued restructuring liability 100  
Other Accrued Expenses and Current Liabilities [Member]    
Restructuring Cost And Reserve [Line Items]    
Short-term accrued restructuring liability 976  
Other Accrued Expenses and Current Liabilities [Member] | Lease Obligations and Facility Exit Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Short-term accrued restructuring liability 952  
Other Accrued Expenses and Current Liabilities [Member] | Severance and Related Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Short-term accrued restructuring liability 24  
Other Long-Term Liabilities [Member] | Lease Obligations and Facility Exit Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Long-term accrued restructuring liability 717  
Accrued Employee Compensation and Benefits [Member] | Severance and Related Costs [Member]    
Restructuring Cost And Reserve [Line Items]    
Short-term accrued restructuring liability $ 793  
v3.10.0.1
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Assets:    
Derivative Assets $ 1,078 $ 3,900
Total assets 12,520 15,527
Liabilities:    
Derivative Liabilities 3,264 835
Total liabilities 3,264 835
Quoted Prices in Active Markets For Identical Assets Level 1 [Member]    
Assets:    
Total assets 11,442 11,627
Significant Other Observable Inputs Level 2 [Member]    
Assets:    
Total assets 1,068 3,848
Liabilities:    
Total liabilities 2,895 256
Significant Unobservable Inputs Level 3 [Member]    
Assets:    
Total assets 10 52
Liabilities:    
Total liabilities 369 579
Foreign Currency Forward and Option Contracts [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]    
Assets:    
Derivative Assets 1,068 3,848
Foreign Currency Forward and Option Contracts [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]    
Liabilities:    
Derivative Liabilities 2,895 256
Foreign Currency Forward and Option Contracts [Member] | Significant Other Observable Inputs Level 2 [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]    
Assets:    
Derivative Assets 1,068 3,848
Foreign Currency Forward and Option Contracts [Member] | Significant Other Observable Inputs Level 2 [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]    
Liabilities:    
Derivative Liabilities 2,895 256
Embedded Derivatives [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]    
Assets:    
Derivative Assets 10 52
Embedded Derivatives [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]    
Liabilities:    
Derivative Liabilities 369 579
Embedded Derivatives [Member] | Significant Unobservable Inputs Level 3 [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]    
Assets:    
Derivative Assets 10 52
Embedded Derivatives [Member] | Significant Unobservable Inputs Level 3 [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]    
Liabilities:    
Derivative Liabilities 369 579
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 8,075 8,094
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 8,075 8,094
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 3,367 3,533
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan $ 3,367 $ 3,533
v3.10.0.1
Fair Value - Rollforward of Net Asset (Liability) Activity of Fair Value of Embedded Derivatives (Detail) - Embedded Derivatives [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]      
Balance at the beginning of the period $ (527) $ (555)  
Settlements 158 170 $ (7)
Effect of foreign currency 17 (3) 166
Balance at the end of the period (359) (527) (555)
Other Income (Expense), Net [Member]      
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]      
Gains (losses) recognized in "Other income (expense), net" (7) (139) (714)
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]      
Change in unrealized gains (losses) included in "Other income (expense), net" related to embedded derivatives held at the end of the period $ 15 $ (325) $ 3
v3.10.0.1
Fair Value - Rollforward of Fair Value of Contingent Consideration (Liability) (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Contingent consideration (liability), Beginning Balance $ (6,100) $ (6,280)
Imputed interest (76) (754)
Settlements 5,760 1,396
Effect of foreign currency (189) 67
Contingent Consideration (liability), Ending Balance 0 (6,100)
General and Administrative [Member]    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Fair value gain (loss) adjustments 605 2,250
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]    
Change in unrealized gains (losses) included in "General and administrative" related to contingent consideration outstanding at the end of the period   2,268
Clearlink [Member]    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Acquisition   (2,779)
Clearlink [Member] | General and Administrative [Member]    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Fair value gain (loss) adjustments $ 600 $ (300)
v3.10.0.1
Fair Value - Additional Information (Detail)
$ in Thousands, € in Millions
1 Months Ended 12 Months Ended
Jun. 30, 2017
EUR (€)
May 31, 2017
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Payments of contingent consideration related to acquisitions       $ 5,760 $ 1,396
Impairment charge     $ 9,401 5,410  
Land [Member] | Property and Equipment [Member] | United States [Member] | Americas [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Impairment charge       200  
Costumer Contact Management Center [Member] | Leasehold Improvements Equipment Furniture and Fixtures [Member] | Property and Equipment [Member] | U.S. and Canada [Member] | Americas [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Impairment charge     $ 9,400 5,200  
General and Administrative [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Fair value gain (loss) adjustments on contingent consideration       605 2,250
Qelp [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Payments of contingent consideration related to acquisitions € 4.0 $ 4,400     4,200
Qelp [Member] | General and Administrative [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Fair value gain (loss) adjustments on contingent consideration         2,600
Clearlink [Member] | General and Administrative [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Fair value gain (loss) adjustments on contingent consideration       $ 600 $ (300)
v3.10.0.1
Fair Value - Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]    
Impairment of long-lived assets $ (9,401) $ (5,410)
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Property and Equipment [Member] | Americas [Member]    
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]    
Impairment of long-lived assets $ (9,401) $ (5,410)
v3.10.0.1
Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 294,093 $ 246,428
Accumulated Amortization (120,062) (106,151)
Net Intangibles $ 174,031 $ 140,277
Weighted Average Amortization Period (years) 5 years 6 years
Customer Relationships [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 189,697 $ 170,853
Accumulated Amortization (106,502) (95,175)
Net Intangibles $ 83,195 $ 75,678
Weighted Average Amortization Period (years) 10 years 10 years
Trade Name and Trademarks [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 19,236 $ 14,138
Accumulated Amortization (10,594) (8,797)
Net Intangibles $ 8,642 $ 5,341
Weighted Average Amortization Period (years) 8 years 7 years
Non-Compete Agreements [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 2,746 $ 1,820
Accumulated Amortization (1,724) (1,052)
Net Intangibles $ 1,022 $ 768
Weighted Average Amortization Period (years) 3 years 3 years
Content Library [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 517 $ 542
Accumulated Amortization $ (517) $ (542)
Weighted Average Amortization Period (years) 2 years 2 years
Proprietary Software [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 1,040 $ 1,040
Accumulated Amortization (725) (585)
Net Intangibles $ 315 $ 455
Weighted Average Amortization Period (years) 4 years 4 years
Domain Names Not Subject To Amortization [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 80,857 $ 58,035
Net Intangibles $ 80,857 $ 58,035
v3.10.0.1
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail)
$ in Thousands
Dec. 31, 2018
USD ($)
Finite Lived Intangible Assets Future Amortization Expense [Abstract]  
2019 $ 16,679
2020 14,013
2021 9,437
2022 8,133
2023 7,282
2024 and thereafter $ 37,630
v3.10.0.1
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Goodwill [Line Items]    
Beginning Balance, Goodwill Net $ 269,265 $ 265,404
Acquisition 38,536 390
Effect of Foreign Currency (5,284) 3,471
Ending Balance, Goodwill Net 302,517 269,265
Americas [Member]    
Goodwill [Line Items]    
Beginning Balance, Goodwill Net 258,496 255,842
Acquisition 2,175 390
Effect of Foreign Currency (5,235) 2,264
Ending Balance, Goodwill Net 255,436 258,496
EMEA [Member]    
Goodwill [Line Items]    
Beginning Balance, Goodwill Net 10,769 9,562
Acquisition 36,361  
Effect of Foreign Currency (49) 1,207
Ending Balance, Goodwill Net $ 47,081 $ 10,769
v3.10.0.1
Goodwill and Intangible Assets - Additional Information (Detail)
12 Months Ended
Dec. 31, 2018
USD ($)
Reporting_Unit
Nov. 01, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Goodwill [Line Items]        
Number of reporting units | Reporting_Unit 6      
Number of reporting units, fair value in excess of carrying value | Reporting_Unit 4      
Goodwill, net $ 302,517,000   $ 269,265,000 $ 265,404,000
Qelp [Member]        
Goodwill [Line Items]        
Goodwill Impairment Loss 0      
Goodwill, net 10,200,000      
Clearlink [Member]        
Goodwill [Line Items]        
Goodwill Impairment Loss 0      
Goodwill, net 71,200,000      
Symphony [Member]        
Goodwill [Line Items]        
Goodwill Impairment Loss 0      
Goodwill, net $ 36,900,000 $ 36,400,000    
v3.10.0.1
Receivables, Net - Receivables, Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Receivables Net Current [Abstract]      
Trade accounts receivable, current $ 338,473   $ 334,147
Income taxes receivable 916   4,138
Other 11,132   6,631
Receivables, gross 350,521   344,916
Less: Allowance for doubtful accounts 3,096   2,958
Receivables, net $ 347,425 $ 342,783 $ 341,958
Allowance for doubtful accounts as a percent of trade accounts receivable, current 0.90%   0.90%
v3.10.0.1
Prepaid Expenses - Prepaid Expenses, Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Prepaid Expense Current [Abstract]    
Prepaid maintenance $ 5,888 $ 7,773
Prepaid insurance 4,500 4,380
Prepaid software 3,499 1,638
Prepaid rent 3,471 3,767
Prepaid other 6,396 4,574
Total prepaid expenses $ 23,754 $ 22,132
v3.10.0.1
Other Current Assets - Other Current Assets, Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]    
Investments held in rabbi trust (Note 12) $ 11,442 $ 11,627
Deferred rent 1,867 1,936
Financial derivatives (Note 11) 1,078 3,857
Other current assets 2,374 2,323
Total other current assets $ 16,761 $ 19,743
v3.10.0.1
Financial Derivatives - Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract]    
Deferred gains (losses) in AOCI $ (1,825) $ 2,550
Tax on deferred gains (losses) in AOCI (39) (79)
Deferred gains (losses) in AOCI, net of taxes (1,864) $ 2,471
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months $ (1,825)  
v3.10.0.1
Financial Derivatives - Outstanding Foreign Currency Forward Contracts, Options and Embedded Derivatives (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Option Contracts [Member] | US Dollars/Philippine Pesos [Member]    
Derivative [Line Items]    
Notional Amount $ 26,250 $ 78,000
Settle Through Date Dec. 31, 2019 Dec. 31, 2018
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | US Dollars/Philippine Pesos [Member]    
Derivative [Line Items]    
Notional Amount $ 39,000 $ 3,000
Settle Through Date Sep. 30, 2019 Jun. 30, 2018
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | US Dollars/Costa Rican Colones [Member]    
Derivative [Line Items]    
Notional Amount $ 67,000 $ 70,000
Settle Through Date Dec. 31, 2019 Mar. 31, 2019
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Forwards [Member]    
Derivative [Line Items]    
Notional Amount $ 19,261 $ 9,253
Settle Through Date Nov. 30, 2021 Mar. 31, 2018
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member]    
Derivative [Line Items]    
Notional Amount $ 14,069 $ 13,519
Settle Through Date Apr. 30, 2030 Apr. 30, 2030
v3.10.0.1
Financial Derivatives - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract]    
Maximum amount of loss due to credit risk $ 1,100,000 $ 3,800,000
Total net settlement amount asset positions 1,100,000 3,600,000
Total net settlement amount liability positions $ 2,900,000 $ 0
v3.10.0.1
Financial Derivatives - Derivative Instruments Fair Value (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Derivatives, Fair Value [Line Items]    
Derivative Assets $ 1,078 $ 3,857
Derivative Assets 1,078 3,900
Derivative Liabilities 3,264 835
Other Accrued Expenses and Current Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 2,859 364
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 30 244
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Accrued Expenses and Current Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 247  
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Long-Term Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 44  
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 10 9
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Deferred Charges and Other Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets   43
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Other Accrued Expenses and Current Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 8 189
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Other Long-Term Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 361 390
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Option Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 2,604 256
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member] | Option Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 1,038 3,604
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Accrued Expenses and Current Liabilities [Member] | Option Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities $ 2,604 175
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Long-Term Liabilities [Member] | Option Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities   $ 81
v3.10.0.1
Financial Derivatives - Effect of Company's Derivative Instruments (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) $ (4,259) $ (6,075) $ 1,101
Gain (Loss) Reclassified From AOCI Into "Revenues" (Effective Portion) (26) (2,536) (553)
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (28) (1) (5)
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Foreign Currency Forward Contracts [Member] | Option Contracts [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) (4,259) 2,277 (2,308)
Gain (Loss) Reclassified From AOCI Into "Revenues" (Effective Portion) (26) (2,536) (553)
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) $ (28) (1) (5)
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Net Investment Hedges [Member] | Foreign Currency Forward Contracts [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)   $ (8,352) $ 3,409
v3.10.0.1
Financial Derivatives - Gains (Losses) Recognized in Other Income (Expense), Net (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Income (Expense) on Derivatives $ (1,751) $ 143 $ (2,270)
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Income (Expense) on Derivatives (1,751) 143 (2,270)
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Income (Expense) on Derivatives (1,744) 282 (1,556)
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (Loss) Recognized in Other Income (Expense) on Derivatives $ (7) $ (139) $ (714)
v3.10.0.1
Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Mutual funds, Fair Value $ 11,442 $ 11,627
Mutual Funds [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Mutual funds, Cost 8,864 8,096
Mutual Funds [Member] | Other Current Assets [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Mutual funds, Fair Value $ 11,442 $ 11,627
v3.10.0.1
Investments Held in Rabbi Trust - Additional Information (Detail)
Dec. 31, 2018
Equity-Based Securities [Member]  
Schedule of Trading Securities and Other Trading Assets [Line Items]  
Mutual funds held in rabbi trust 71.00%
Debt-Based Securities [Member]  
Schedule of Trading Securities and Other Trading Assets [Line Items]  
Mutual funds held in rabbi trust 29.00%
v3.10.0.1
Investments Held in Rabbi Trust - Components of Investment Income (Losses), Included in Other Income (Expense), Net in Accompanying Consolidated Statements of Operations (Detail) - Other Income (Expense), Net [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Schedule of Trading Securities and Other Trading Assets [Line Items]      
Net realized gains (losses) from sale of trading securities $ 10 $ 195 $ 241
Dividend and interest income 635 422 92
Net unrealized holding gains (losses) (1,512) 1,002 249
Net investment income (losses) $ (867) $ 1,619 $ 582
v3.10.0.1
Property and Equipment, Net - Property and Equipment, Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 475,076 $ 493,857
Less: Accumulated depreciation 339,658 333,067
Property and equipment, net 135,418 160,790
Land [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 2,185 3,217
Buildings and Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 129,582 135,100
Equipment, Furniture and Fixtures [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 298,537 312,636
Capitalized Internally Developed Software Costs [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 41,883 34,886
Property and equipment, net 18,352 15,876
Transportation Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 636 556
Construction in Progress [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 2,253 $ 7,462
v3.10.0.1
Property and Equipment, Net - Capitalized Internally Developed Software, Net of Depreciation (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Line Items]    
Property and equipment, net $ 135,418 $ 160,790
Capitalized Internally Developed Software Costs [Member]    
Property, Plant and Equipment [Line Items]    
Property and equipment, net $ 18,352 $ 15,876
v3.10.0.1
Property and Equipment, Net - Additional Information (Detail) - USD ($)
1 Months Ended 12 Months Ended
Oct. 31, 2018
Sep. 30, 2018
Dec. 31, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment [Line Items]            
Net gain or loss on sale       $ (312,000) $ (474,000) $ (314,000)
Property and equipment, net       135,418,000 $ 160,790,000  
Wise, Virginia [Member] | Property and Equipment [Member]            
Property, Plant and Equipment [Line Items]            
Proceeds from sale of assets $ 800,000          
Property and equipment, net 700,000          
Wise, Virginia [Member] | Property and Equipment [Member] | Maximum [Member]            
Property, Plant and Equipment [Line Items]            
Selling costs 100,000          
Wise, Virginia [Member] | Property and Equipment [Member] | General and Administrative [Member] | Maximum [Member]            
Property, Plant and Equipment [Line Items]            
Net gain or loss on sale $ 100,000     100,000    
Ponca City, Oklahoma [Member] | Property and Equipment [Member]            
Property, Plant and Equipment [Line Items]            
Proceeds from sale of assets   $ 200,000        
Property and equipment, net   500,000        
Ponca City, Oklahoma [Member] | Property and Equipment [Member] | Maximum [Member]            
Property, Plant and Equipment [Line Items]            
Selling costs   100,000        
Ponca City, Oklahoma [Member] | Property and Equipment [Member] | General and Administrative [Member]            
Property, Plant and Equipment [Line Items]            
Net gain or loss on sale   $ (300,000)   $ (300,000)    
Morganfield, Kentucky [Member] | Property and Equipment [Member]            
Property, Plant and Equipment [Line Items]            
Proceeds from sale of assets     $ 500,000      
Property and equipment, net     300,000     300,000
Morganfield, Kentucky [Member] | Property and Equipment [Member] | Maximum [Member]            
Property, Plant and Equipment [Line Items]            
Selling costs     100,000      
Morganfield, Kentucky [Member] | Property and Equipment [Member] | General and Administrative [Member]            
Property, Plant and Equipment [Line Items]            
Net gain or loss on sale     $ 200,000     $ 200,000
v3.10.0.1
Deferred Charges and Other Assets - Components of Deferred Charges and Other Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]      
Trade accounts receivable, net, noncurrent $ 15,948   $ 0
Equity method investments (Note 1) 9,702   10,341
Net deferred tax assets, noncurrent (Note 20) 5,797   6,657
Rent and other deposits 5,687   5,379
Value added tax receivables, net, noncurrent 519   548
Other 5,711   6,268
Deferred charges and other assets, total $ 43,364 $ 31,238 $ 29,193
v3.10.0.1
Accrued Employee Compensation and Benefits - Components of Accrued Employee Compensation and Benefits (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Accrued Employee Compensation And Benefits [Line Items]    
Accrued compensation $ 34,095 $ 42,505
Accrued bonus and commissions 19,835 22,523
Accrued vacation 19,019 18,848
Accrued employment taxes 15,598 11,412
Other 6,473 7,611
Accrued employee compensation and benefits 95,813 $ 102,899
2018 Exit Plan [Member] | Americas [Member] | Accrued Employee Compensation and Benefits [Member] | Severance and Related Costs [Member]    
Accrued Employee Compensation And Benefits [Line Items]    
Accrued severance and related costs (Note 4) $ 793  
v3.10.0.1
Other Accrued Expenses and Current Liabilities - Other Accrued Expenses and Current Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Derivatives, Fair Value [Line Items]    
Accrued legal and professional fees $ 3,380 $ 3,417
Accrued rent 3,283 2,983
Accrued customer-acquisition advertising costs (Note 1) 2,831 403
Accrued telephone charges 2,000 1,515
Accrued roadside assistance claim costs 1,330 2,011
Accrued utilities 1,148 1,694
Other 10,034 18,501
Total 31,235 30,888
Other Accrued Expenses and Current Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Financial derivatives (Note 11) 2,859 $ 364
Symphony [Member]    
Derivatives, Fair Value [Line Items]    
Deferred Symphony acquisition purchase price (Note 3) 3,394  
2018 Exit Plan [Member] | Americas [Member] | Other Accrued Expenses and Current Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Accrued restructuring (Note 4) $ 976  
v3.10.0.1
Deferred Grants - Schedule of Deferred Grants, Net of Accumulated Amortization (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Deferred Revenue Arrangement [Line Items]    
Property grants $ 1,983 $ 2,843
Lease grants 369 507
Employment grants 13 61
Total deferred grants 2,365 3,411
Total long-term deferred grants 2,241 3,233
Other Accrued Expenses and Current Liabilities [Member]    
Deferred Revenue Arrangement [Line Items]    
Less: Lease grants - short-term (111) (117)
Less: Employment grants - short-term $ (13) $ (61)
v3.10.0.1
Borrowings - Additional Information (Detail) - USD ($)
1 Months Ended 12 Months Ended
Feb. 14, 2019
Jan. 31, 2018
Dec. 31, 2018
Dec. 31, 2016
Dec. 31, 2017
May 31, 2015
May 12, 2015
Line of Credit Facility [Line Items]              
Outstanding borrowings     $ 102,000,000   $ 275,000,000    
Long-term debt repaid     $ 231,000,000 $ 19,000,000      
Revolving Credit Facility [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity             $ 440,000,000
Line of credit facility, expiration date     May 12, 2020        
Outstanding borrowings     $ 102,000,000   $ 275,000,000    
Credit agreement customary fees description     The Company is required to pay certain customary fees, including a commitment fee determined quarterly based on the Company’s leverage ratio and due quarterly in arrears as calculated on the average unused amount of the Credit Agreement        
Underwriting fee for credit agreement           $ 900,000  
Long-term debt repaid   $ 175,000,000          
Revolving Credit Facility [Member] | Subsequent Event [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity $ 500,000,000            
Line of credit facility, expiration date Feb. 14, 2024            
Revolving Credit Facility [Member] | Non-Voting Capital Stock Direct Foreign Subsidiaries [Member]              
Line of Credit Facility [Line Items]              
Percentage of capital stock pledged under credit agreement     100.00%        
Revolving Credit Facility [Member] | Voting Capital Stock Direct Foreign Subsidiaries [Member]              
Line of Credit Facility [Line Items]              
Percentage of capital stock pledged under credit agreement     65.00%        
Alternate-Currency Sub-Facility [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity             200,000,000
Alternate-Currency Sub-Facility [Member] | Subsequent Event [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity $ 200,000,000            
Swingline Sub-Facility [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity             10,000,000
Swingline Sub-Facility [Member] | Subsequent Event [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity 15,000,000            
Letter of Credit [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity             $ 35,000,000
Letter of Credit [Member] | Subsequent Event [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity $ 15,000,000            
Prior Credit Agreement [Member]              
Line of Credit Facility [Line Items]              
Underwriting fee for credit agreement     $ 400,000        
v3.10.0.1
Borrowings - Information Related to Credit Agreements (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Line Of Credit Facility [Abstract]      
Average daily utilization $ 106,189 $ 268,775 $ 222,612
Interest expense $ 3,817 $ 6,668 $ 3,952
Weighted average interest rate 3.60% 2.50% 1.80%
v3.10.0.1
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance $ 796,479 $ 724,522 $ 678,680
Ending Balance 826,609 796,479 724,522
Foreign Currency Translation Adjustments [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (36,315) (72,393) (58,601)
Pre-tax amount (22,158) 36,101 (13,832)
Foreign currency translation 220 (23) 40
Ending Balance (58,253) (36,315) (72,393)
Unrealized Gain (Loss) on Net Investment Hedge [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance 1,046 6,266 4,170
Pre-tax amount   (8,352) 3,409
Tax (provision) benefit   3,132 (1,313)
Ending Balance 1,046 1,046 6,266
Unrealized Gain (Loss) on Cash Flow Hedging Instruments [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance 2,471 (2,225) (527)
Pre-tax amount (4,287) 2,276 (2,313)
Tax (provision) benefit 84 (54) 72
Reclassification of (gain) loss to net income 6 2,444 527
Foreign currency translation (138) 30 16
Ending Balance (1,864) 2,471 (2,225)
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance 1,574 1,125 1,029
Pre-tax amount 783 527 212
Tax (provision) benefit 47 (18) (8)
Reclassification of (gain) loss to net income (66) (53) (52)
Foreign currency translation (82) (7) (56)
Ending Balance 2,256 1,574 1,125
Unrealized Gain (Loss) on Postretirement Obligation [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance 120 200 267
Pre-tax amount   (30) (9)
Reclassification of (gain) loss to net income (80) (50) (58)
Ending Balance 40 120 200
Accumulated Other Comprehensive Income (Loss) [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Beginning Balance (31,104) (67,027) (53,662)
Pre-tax amount (25,662) 30,522 (12,533)
Tax (provision) benefit 131 3,060 (1,249)
Reclassification of (gain) loss to net income (140) 2,341 417
Ending Balance $ (56,775) $ (31,104) $ (67,027)
v3.10.0.1
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Pre-tax amount $ 56,917 $ 81,307 $ 88,884
Tax (provision) benefit 7,991 49,091 26,494
Reclassification of gain (loss) to net income 48,926 32,216 62,390
Reclassification out of Accumulated Other Comprehensive Income [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification of gain (loss) to net income 140 (2,341) (417)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Cash Flow Hedging Instruments [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Tax (provision) benefit 48 93 31
Reclassification of gain (loss) to net income (6) (2,444) (527)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Actuarial Gain (Loss) Related to Pension Liability [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Tax (provision) benefit 8 10 12
Reclassification of gain (loss) to net income 66 53 52
Reclassification out of Accumulated Other Comprehensive Income [Member] | Revenues [Member] | Gain (Loss) on Cash Flow Hedging Instruments [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Pre-tax amount (54) (2,537) (558)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Income (Expense), Net [Member] | Actuarial Gain (Loss) Related to Pension Liability [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Pre-tax amount 58 43 40
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Income (Expense), Net [Member] | Gain (Loss) on Postretirement Obligation [Member]      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification of gain (loss) to net income $ 80 $ 50 $ 58
v3.10.0.1
Income Taxes - Income from Continuing Operations before Income Taxes (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]      
Domestic (U.S., state and local) $ 6,971 $ 9,662 $ 34,761
Foreign 49,946 71,645 54,123
Income before income taxes $ 56,917 $ 81,307 $ 88,884
v3.10.0.1
Income Taxes - Significant Components of Income Tax Provision (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Current:      
U.S. federal $ (492) $ 29,986 $ 9,514
State and local 54 855 1,958
Foreign 9,938 10,342 12,683
Total current provision for income taxes 9,500 41,183 24,155
Deferred:      
U.S. federal (498) 7,919 2,007
State and local (85) 922 (526)
Foreign (926) (933) 858
Total deferred provision (benefit) for income taxes (1,509) 7,908 2,339
Total provision for income taxes $ 7,991 $ 49,091 $ 26,494
v3.10.0.1
Income Taxes - Significant Portions of Deferred Income Tax Provision (Benefit) Due to Temporary Differences (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]      
Net operating loss and tax credit carryforwards $ (613) $ 1,231 $ 285
Accrued expenses/liabilities (2,512) 16,470 1,173
Depreciation and amortization 101 (10,571) 1,286
Valuation allowance 1,558 (1,441) 901
Deferred statutory income 6 2,479 (1,394)
Other (49) (260) 88
Total deferred provision (benefit) for income taxes $ (1,509) $ 7,908 $ 2,339
v3.10.0.1
Income Taxes - Reconciliation of Income Tax Provision (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Tax at U.S. federal statutory tax rate   $ 11,953 $ 28,457 $ 31,109
State income taxes, net of federal tax benefit   (31) 594 1,432
Foreign rate differential   (4,620) (14,736) (15,837)
Tax holidays   (4,050) (2,951) (3,314)
Permanent differences   12,150 8,749 12,768
Tax credits   (8,979) (5,102) (4,396)
Foreign withholding and other taxes   (840) 2,661 2,667
Valuation allowance   1,549 (1,689) 994
Uncertain tax positions   771 (1,812) 398
Statutory tax rate changes   96 2,536 242
Other   209 (321) 431
Total provision for income taxes   7,991 49,091 $ 26,494
US 2017 Tax Reform Act [Member]        
2017 Tax Reform Act $ 32,700 $ (217) $ 32,705  
v3.10.0.1
Income Taxes - Additional Information (Detail) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Dec. 31, 2017
Jun. 30, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax [Line Items]            
Withholding taxes related to offshore cash movements     $ 2,000,000 $ 1,700,000 $ 2,000,000  
Statutory federal income tax rate     21.00% 35.00%    
Undistributed earnings of foreign subsidiaries $ 531,800,000     $ 531,800,000    
Decrease in the amount of the provision for income taxes due to tax holidays     $ 4,050,000 $ 2,951,000 $ 3,314,000  
Income tax holidays, income tax benefit per share     $ 0.10 $ 0.07 $ 0.08  
Income tax loss carryforwards, total     $ 154,200,000      
Unrecognized tax benefits 1,342,000   2,720,000 $ 1,342,000 $ 8,531,000 $ 8,116,000
Unrecognized tax benefits that would impact effective tax rate 1,300,000   2,700,000 1,300,000    
Accrued interest and penalties related to unrecognized tax benefits 1,300,000   600,000 1,300,000    
Interest and penalties recognized in the accompanying Consolidated Statement of Operations     700,000 (9,500,000) $ 400,000  
Canada Revenue Agency [Member]            
Income Tax [Line Items]            
Income tax benefit recognized on settlement of Canadian audit   $ (1,200,000) (2,800,000)      
Statutory Penalties [Member]            
Income Tax [Line Items]            
Accrued interest and penalties related to unrecognized tax benefits 800,000   400,000 800,000    
Long-Term Income Tax Liabilities [Member]            
Income Tax [Line Items]            
Unrecognized tax benefits 1,300,000   $ 2,700,000 1,300,000    
Minimum [Member]            
Income Tax [Line Items]            
Income tax holiday expiration dates     2019      
Maximum [Member]            
Income Tax [Line Items]            
Income tax holiday expiration dates     2028      
US 2017 Tax Reform Act [Member]            
Income Tax [Line Items]            
Statutory federal income tax rate     21.00%      
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act 32,700,000   $ (217,000) 32,705,000    
US 2017 Tax Reform Act [Member] | One-Time Transition Tax on Mandatory Deemed Repatriation of Foreign Earnings [Member]            
Income Tax [Line Items]            
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act 32,700,000     32,700,000    
US 2017 Tax Reform Act [Member] | Foreign Withholding Taxes on Certain Anticipated Distributions [Member]            
Income Tax [Line Items]            
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act 1,000,000     1,000,000    
US 2017 Tax Reform Act [Member] | Remeasurement of Certain Deferred Tax Assets and Liabilities [Member]            
Income Tax [Line Items]            
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act $ (1,000,000)     $ (1,000,000)    
Foreign Operations [Member]            
Income Tax [Line Items]            
Income tax loss carryforwards, total     123,800,000      
Operating loss carryforwards not recognized     116,600,000      
Foreign Operations [Member] | Indefinite Expiration Date [Member]            
Income Tax [Line Items]            
Income tax loss carryforwards, total     93,900,000      
Foreign Operations [Member] | Varying Expiration Dates [Member]            
Income Tax [Line Items]            
Income tax loss carryforwards, total     $ 22,700,000      
Foreign Operations [Member] | Maximum [Member] | Varying Expiration Dates [Member]            
Income Tax [Line Items]            
Tax credit carryforward expiration date     Dec. 31, 2039      
U.S. State Operations [Member]            
Income Tax [Line Items]            
Income tax loss carryforwards, total     $ 30,400,000      
Benefit recognized from operating loss carryforward     0      
Operating loss carryforwards not recognized     $ 24,000,000      
v3.10.0.1
Income Taxes - Schedule of Deferred Tax Assets and Liabilities Classifications (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Deferred tax assets:    
Net operating loss and tax credit carryforwards $ 34,565 $ 33,803
Valuation allowance (32,299) (32,443)
Accrued expenses 9,500 9,938
Deferred revenue and customer liabilities 4,138 4,544
Depreciation and amortization 1,693 1,628
Other 413 229
Deferred tax assets, total 18,010 17,699
Deferred tax liabilities:    
Depreciation and amortization (13,199) (12,999)
Deferred statutory income (838) (938)
Accrued liabilities (1,779) (2,849)
Other (253) (258)
Deferred tax liabilities, total (16,069) (17,044)
Net deferred tax assets $ 1,941 $ 655
v3.10.0.1
Income Taxes - Significant Portions of Deferred Tax Assets and Liabilities Due to Temporary Differences (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Classified as follows:    
Deferred charges and other assets (Note 14) $ 5,797 $ 6,657
Other long-term liabilities (3,856) (6,002)
Net deferred tax assets $ 1,941 $ 655
v3.10.0.1
Income Taxes - Reconciliation of Amounts of Unrecognized Net Tax Benefits (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]      
Balance at the beginning of the period $ 1,342 $ 8,531 $ 8,116
Current period tax position increases 2,950    
Decreases from settlements with tax authorities (191) (10,865)  
Decreases due to lapse in applicable statute of limitations (1,310) (466)  
Foreign currency translation increases (decreases) (71) 4,142 415
Balance at the end of the period $ 2,720 $ 1,342 $ 8,531
v3.10.0.1
Earnings Per Share - Numbers of Shares Used in Earnings Per Share Computation (Detail) - shares
shares in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Basic:      
Weighted average common shares outstanding 42,090 41,822 41,847
Diluted:      
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust 156 319 392
Total weighted average diluted shares outstanding 42,246 42,141 42,239
Anti-dilutive shares excluded from the diluted earnings per share calculation 44 46 20
v3.10.0.1
Earnings Per Share - Additional Information (Detail) - 2011 Share Repurchase Program [Member] - shares
12 Months Ended 88 Months Ended
Dec. 31, 2016
Dec. 31, 2018
Mar. 16, 2016
Aug. 18, 2011
Equity, Class of Treasury Stock [Line Items]        
Maximum amount of shares authorized for repurchase     10,000,000 5,000,000
Total Number of Shares Repurchased 390,000 5,300,000    
Increase in shares authorized for repurchase     5,000,000  
v3.10.0.1
Earnings Per Share - Shares Repurchased (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended 88 Months Ended
Dec. 31, 2016
Dec. 31, 2018
Schedule Of Shares Repurchased [Line Items]    
Total Cost of Shares Repurchased $ 11,144  
Minimum [Member]    
Schedule Of Shares Repurchased [Line Items]    
Range of Prices Paid Per Share $ 27.81  
Maximum [Member]    
Schedule Of Shares Repurchased [Line Items]    
Range of Prices Paid Per Share $ 30.00  
2011 Share Repurchase Program [Member]    
Schedule Of Shares Repurchased [Line Items]    
Total Number of Shares Repurchased 390 5,300
v3.10.0.1
Commitments and Loss Contingency - Rental Expense under Operating Leases (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]      
Rental expense $ 67,980 $ 59,906 $ 55,584
v3.10.0.1
Commitments and Loss Contingency - Schedule of Future Minimum Rental Payments under Operating Leases (Detail)
$ in Thousands
Dec. 31, 2018
USD ($)
Operating Leases Future Minimum Payments Due [Abstract]  
2019 $ 53,071
2020 48,770
2021 43,324
2022 34,063
2023 22,583
2024 and thereafter 51,456
Total minimum payments required $ 253,267
v3.10.0.1
Commitments and Loss Contingency - Additional Information (Detail) - USD ($)
12 Months Ended
Oct. 17, 2018
Dec. 31, 2018
Slaughter Lawsuit [Member]    
Long-term Purchase Commitment [Line Items]    
Loss contingency lawsuit filing date   August 24, 2017
Litigation verbal settlement agreement date   October 17, 2018
Outstanding legal action settlement, amount $ 1,200,000  
Litigation settlement amount paid   $ 1,200,000
Slaughter Lawsuit [Member] | General and Administrative [Member]    
Long-term Purchase Commitment [Line Items]    
Litigation charges in period   $ 1,200,000
Minimum [Member]    
Long-term Purchase Commitment [Line Items]    
Term of agreements with third party vendors   1 year
Loss Contingency, net of federal benefit   $ 0
Maximum [Member]    
Long-term Purchase Commitment [Line Items]    
Term of agreements with third party vendors   5 years
Loss Contingency, net of federal benefit   $ 1,200,000
v3.10.0.1
Commitments and Loss Contingency - Schedule of Future Minimum Purchases Remaining under Agreements (Detail)
$ in Thousands
Dec. 31, 2018
USD ($)
Unrecorded Unconditional Purchase Obligation [Abstract]  
2019 $ 61,281
2020 16,308
2021 2,216
2022 1,021
2023 525
2024 and thereafter 0
Total minimum payments required $ 81,351
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail)
12 Months Ended
Dec. 31, 2018
USD ($)
Pension Plans, Postretirement and Other Employee Benefits [Line Items]  
Company's maximum expected cash contributions to the Pension Plans in the next fiscal year $ 0
Maximum expected actuarial gain to be recognize as a component of periodic benefit cost next fiscal year $ 100,000
Percentage of employer's contribution based on participants contribution 50.00%
Maximum [Member]  
Pension Plans, Postretirement and Other Employee Benefits [Line Items]  
Percentage of employer's contribution based on participants compensation 2.00%
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits - Reconciliation of Change in Benefit Obligation (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plan Accumulated Other Comprehensive Income Before Tax [Abstract]      
Balance at the beginning of the period $ 3,642 $ 3,551  
Service cost 448 443 $ 443
Interest cost 196 194 165
Actuarial (gains) losses (783) (521)  
Benefits paid (32) (3)  
Effect of foreign currency translation (189) (22)  
Balance at the end of the period 3,282 3,642 $ 3,551
Unfunded status (3,282) (3,642)  
Net amount recognized $ (3,282) $ (3,642)  
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits - Benefit Obligations and Net Periodic Benefit Cost for Pension Plans (Detail)
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]      
Rate of compensation increase 2.00% 2.00% 2.00%
Minimum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Discount rate 7.40% 5.50% 5.50%
Maximum [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Discount rate 7.50% 5.60% 5.60%
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits - Net Periodic Benefit Cost for Pension Plans (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plan Net Periodic Benefit Cost [Abstract]      
Service cost $ 448 $ 443 $ 443
Interest cost 196 194 165
Recognized actuarial (gains) (58) (43) (40)
Net periodic benefit cost 586 594 568
Unrealized net actuarial (gains), net of tax (2,256) (1,574) (1,126)
Total amount recognized in net periodic benefit cost and accumulated other comprehensive income (loss) $ (1,670) $ (980) $ (558)
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits - Estimated Future Benefit Payments for Expected Future Service (Detail)
$ in Thousands
Dec. 31, 2018
USD ($)
Defined Benefit Plan Estimated Future Benefit Payments [Abstract]  
2019 $ 331
2020 109
2021 108
2022 94
2023 130
2024 - 2028 $ 1,035
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits - Company's Contributions to Employee Retirement Savings Plans (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Compensation And Retirement Disclosure [Abstract]      
401(k) plan contributions $ 1,612 $ 1,502 $ 969
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits - Post-Retirement Benefit Obligation and Unrealized Gain (Losses) (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefit obligation $ 3,282 $ 3,642 $ 3,551
Split-Dollar Life Insurance Arrangement [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Postretirement benefit obligation 12 15  
Unrealized gains (losses) in AOCI $ 40 $ 120  
v3.10.0.1
Stock-Based Compensation - Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Excess tax benefit from stock-based compensation     $ 2,098
General and Administrative [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation (expense) $ (7,543) $ (7,621) (10,779)
Income Taxes [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Income tax benefit $ 1,810 $ 2,858 4,150
Additional Paid-in Capital [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Excess tax benefit from stock-based compensation     $ 2,098
v3.10.0.1
Stock-Based Compensation - Additional Information (Detail) - USD ($)
12 Months Ended
Nov. 01, 2018
May 24, 2017
May 23, 2017
Dec. 06, 2016
Dec. 31, 2018
Dec. 31, 2017
Jan. 01, 2017
Dec. 31, 2016
Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Capitalized stock-based compensation costs         $ 0 $ 0   $ 0  
Symphony [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Effective date of acquisition Nov. 01, 2018                
2011 Equity Incentive Plan [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares of common stock available under the 2011 plan         4,000,000        
2011 Equity Incentive Plan [Member] | Stock Appreciation Rights (SARs) [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period         10 years        
Share-based compensation vesting period         One-third on March 15th in each of the first three years following the date of grant        
Weighted average period         1 year 9 months 18 days        
Total unrecognized compensation cost         $ 2,600,000        
2011 Equity Incentive Plan [Member] | Restricted Shares and Restricted Stock Units (RSU's) [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based compensation vesting period         One-third on March 15th in each of the first three years following the date of grant        
Weighted average period         1 year 4 months 24 days        
Total unrecognized compensation cost         $ 6,800,000        
2011 Equity Incentive Plan [Member] | Restricted Shares and Restricted Stock Units (RSU's) [Member] | Minimum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Range of vesting possibilities         0.00%        
2011 Equity Incentive Plan [Member] | Restricted Shares and Restricted Stock Units (RSU's) [Member] | Maximum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Range of vesting possibilities         100.00%        
2004 Non-Employee Director Fee Plan [Member] | Common Stock Awards [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Plan expiration date         May 31, 2014        
Non-Employee Director Fee Plan [Member] | Common Stock Awards [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Weighted average period         8 months 12 days        
Total unrecognized compensation cost         $ 200,000        
Value of initial granted shares of common stock to new non employee director         $ 60,000        
Vesting period of initial granted shares of common stock to new non employee director         Twelve equal quarterly installments, one-twelfth on the date of grant and an additional one-twelfth on each successive third monthly anniversary of the date of grant.        
Value of Annual Retainer to Non-Employee Director     $ 155,000   $ 170,000        
Annual Retainer payable in cash to Non Employee Director     55,000 $ 70,000 $ 70,000        
Annual Retainer payable in stock to Non Employee Director     $ 100,000            
Increased cash component of annual retainer   $ 15,000              
Vesting period of cash annual retainer to non-employee director         Vested in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant        
Vesting period of annual granted shares of common stock to non-employee director         Four equal quarterly installments, one-fourth on the date of grant and an additional one-fourth on each successive third monthly anniversary of the date of grant        
Additional annual cash award to be given to any non employee chairman of board         $ 100,000        
Additional annual cash award to be given to Chairperson of the audit committee         20,000        
Additional annual cash award to be given to audit committee members         10,000        
Annual cash awards for the members of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee         7,500        
Annual cash awards for the Chairpersons of the Compensation Committee         15,000        
Annual cash awards for the Chairpersons of the Finance Committee         12,500        
Annual cash awards for the Chairpersons of the Nominating and Corporate Governance Committee         12,500        
Deferred Compensation Plan [Member] | Accrued Employee Compensation and Benefits [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Accrued employee compensation and benefits         $ 11,400,000 11,600,000      
Deferred Compensation Plan [Member] | Common Stock Awards [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Weighted average period         4 years 6 months        
Total unrecognized compensation cost         $ 200,000        
Percentage of contribution in respect of amounts deferred by certain senior management participants         50.00%        
Vesting period of matching contributions and associated earnings         7 years        
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Minimum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Deferred compensation plan, percentage of employee deferral         1.00%       1.00%
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Maximum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Deferred compensation plan, percentage of employee deferral         80.00%       100.00%
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Maximum [Member] | President, Chief Executive Officer and Executive Vice Presidents [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Amounts deferred by certain senior management personnel         $ 12,000        
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Maximum [Member] | Senior Vice President, Global Vice Presidents and Vice Presidents [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Amounts deferred by certain senior management personnel         7,500        
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Maximum [Member] | All Other Participants [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Amounts deferred by certain senior management personnel         $ 5,000        
Acquisition-Related Restricted Shares [Member] | Symphony [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Effective date of acquisition         Nov. 01, 2018        
Acquisition-Related Restricted Shares [Member] | Restricted Shares and Restricted Stock Units (RSU's) [Member] | Symphony [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based compensation vesting period         One-half on and after each of May 1, 2020 and November 1, 2021, provided the participant is employed by the Company on such date.        
Weighted average period         2 years 9 months 18 days        
Total unrecognized compensation cost         $ 3,600,000        
Accounting Standards Update 2016-09 [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Cumulative effect of accounting change           79,000      
Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Cumulative effect of accounting change           (153,000) $ 200,000    
Treasury Stock [Member] | Deferred Compensation Plan [Member] | Common Stock Awards [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Common stock match associated with the deferred compensation plan carrying value         $ 2,400,000 $ 2,100,000      
v3.10.0.1
Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member]
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 21.40% 19.30% 25.30%
Weighted-average volatility 21.40% 19.30% 25.30%
Expected dividend rate 0.00% 0.00% 0.00%
Expected term (in years) 5 years 5 years 5 years
Risk-free rate 2.50% 1.90% 1.50%
v3.10.0.1
Stock-Based Compensation - Summary of Stock Appreciation Rights Activity (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Balance at the beginning of the period, Shares 734    
Granted, Shares 333 396 323
Exercised, Shares (62)    
Forfeited or expired, Shares (43)    
Balance at the end of the period, Shares 962 734  
Vested or expected to vest at the end of the period, Shares 962    
Exercisable at the end of the period, Shares 344    
Balance at the beginning of the period, Weighted Average Exercise Price $ 0    
Granted, Weighted Average Exercise Price 0    
Exercised, Weighted Average Exercise Price 0    
Forfeited or expired, Weighted Average Exercise Price 0    
Balance at the end of the period, Weighted Average Exercise Price 0 $ 0  
Vested or expected to vest at the end of the period, Weighted Average Exercise Price 0    
Exercisable at the end of the period, Weighted Average Exercise Price $ 0    
Balance at the end of the period, Weighted Average Remaining Contractual Term 8 years 1 month 6 days    
Vested or expected to vest at the end of the period, Weighted Average Remaining Contractual Term 8 years 1 month 6 days    
Exercisable at the end of the period, Weighted Average Remaining Contractual Term 7 years    
Balance at the end of the period, Aggregate Intrinsic Value $ 167    
Vested or expected to vest at the end of the period, Aggregate Intrinsic Value 167    
Exercisable at the end of the period, Aggregate Intrinsic Value $ 167    
v3.10.0.1
Stock-Based Compensation - Weighted Average Grant Date of SARs Granted and Total Intrinsic Value of SARs Exercised (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted, Shares 333 396 323
Weighted average grant-date fair value per SAR $ 6.84 $ 6.24 $ 7.68
Intrinsic value of SARs exercised $ 320 $ 1,763 $ 1,691
Fair value of vested $ 1,950 $ 1,846 $ 1,520
v3.10.0.1
Stock-Based Compensation - Summary of Nonvested Stock Appreciation Rights (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member] - $ / shares
shares in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Balance at the beginning of the period, Shares 600    
Granted, Shares 333 396 323
Vested, Shares (272)    
Forfeited or expired, Shares (43)    
Balance at the end of the period, Shares 618 600  
Balance at the beginning of the period, Weighted Average Grant-Date Fair Value $ 6.88    
Granted, Weighted Average Grant-Date Fair Value 6.84 $ 6.24 $ 7.68
Vested, Weighted Average Grant-Date Fair Value 7.16    
Forfeited or expired, Weighted Average Grant-Date Fair Value 6.75    
Balance at the end of the period, Weighted Average Grant-Date Fair Value $ 6.74 $ 6.88  
v3.10.0.1
Stock-Based Compensation - Summary of Nonvested Restricted Shares and Restricted Stock Units (Detail) - Restricted Shares and Restricted Stock Units (RSU's) [Member] - 2011 Equity Incentive Plan [Member] - $ / shares
shares in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Balance at the beginning of the period, Shares 1,109    
Granted, Shares 492 480 451
Vested, Shares (323)    
Forfeited, Shares (134)    
Balance at the end of the period, Shares 1,144 1,109  
Balance at the beginning of the period, Weighted Average Grant-Date Fair Value $ 28.50    
Granted, Weighted Average Grant-Date Fair Value 28.16 $ 29.42 $ 30.32
Vested, Weighted Average Grant-Date Fair Value 25.78    
Forfeited or expired, Weighted Average Grant-Date Fair Value 28.23    
Balance at the end of the period, Weighted Average Grant-Date Fair Value $ 29.15 $ 28.50  
v3.10.0.1
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value Granted and Total Fair Value of Restricted Shares and Restricted Stock Units Vested (Detail) - Restricted Shares and Restricted Stock Units (RSU's) [Member] - 2011 Equity Incentive Plan [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted, Shares 492 480 451
Weighted average grant-date fair value $ 28.16 $ 29.42 $ 30.32
Fair value of vested $ 8,342 $ 6,868 $ 6,785
v3.10.0.1
Stock-Based Compensation - Summary of Nonvested Common Stock Units and Share Awards (Detail) - Common Stock Awards [Member] - Non-Employee Director Fee Plan [Member] - $ / shares
shares in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Balance at the beginning of the period, Shares 8    
Granted, Shares 34 24 32
Vested, Shares (31)    
Forfeited, Shares (2)    
Balance at the end of the period, Shares 9 8  
Balance at the beginning of the period, Weighted Average Grant-Date Fair Value $ 32.21    
Granted, Weighted Average Grant-Date Fair Value 27.68 $ 32.93 $ 29.04
Vested, Weighted Average Grant-Date Fair Value 28.80    
Forfeited or expired, Weighted Average Grant-Date Fair Value 27.68    
Balance at the end of the period, Weighted Average Grant-Date Fair Value $ 27.72 $ 32.21  
v3.10.0.1
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Total Fair Value of Common Stock Units and Share Awards Vested (Detail) - Common Stock Awards [Member] - Non-Employee Director Fee Plan [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted, Shares 34 24 32
Granted, Weighted Average Grant-Date Fair Value $ 27.68 $ 32.93 $ 29.04
Fair value of vested $ 880 $ 850 $ 850
v3.10.0.1
Stock-Based Compensation - Summary of Nonvested Common Stock (Detail) - Common Stock Awards [Member] - Deferred Compensation Plan [Member] - $ / shares
shares in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Balance at the beginning of the period, Shares 3    
Granted, Shares 16 13 8
Vested, Shares (11)    
Forfeited, Shares 0    
Balance at the end of the period, Shares 8 3  
Balance at the beginning of the period, Weighted Average Grant-Date Fair Value $ 29.56    
Granted, Weighted Average Grant-Date Fair Value 28.48 $ 30.49 $ 29.36
Vested, Weighted Average Grant-Date Fair Value 28.41    
Forfeited or expired, Weighted Average Grant-Date Fair Value 0    
Balance at the end of the period, Weighted Average Grant-Date Fair Value $ 29.01 $ 29.56  
v3.10.0.1
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Awarded and Cash Used to Settle Company's Obligation under Deferred Compensation (Detail) - Common Stock Awards [Member] - Deferred Compensation Plan [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted, Shares 16 13 8
Weighted average grant-date fair value $ 28.48 $ 30.49 $ 29.36
Fair value of vested $ 315 $ 334 $ 255
Cash used to settle the obligation $ 804 $ 1,134 $ 396
v3.10.0.1
Stock-Based Compensation - Summary of Nonvested Acquisition-Related Restricted Shares and Restricted Stock Units (Detail) - Restricted Shares and Restricted Stock Units (RSU's) [Member] - Acquisition-Related Restricted Shares [Member] - Symphony [Member]
shares in Thousands
12 Months Ended
Dec. 31, 2018
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Balance at the beginning of the period, Shares | shares 0
Granted, Shares | shares 124
Vested, Shares | shares 0
Forfeited, Shares | shares 0
Balance at the end of the period, Shares | shares 124
Balance at the beginning of the period, Weighted Average Grant-Date Fair Value | $ / shares $ 0
Granted, Weighted Average Grant-Date Fair Value | $ / shares 30.67
Vested, Weighted Average Grant-Date Fair Value | $ / shares 0
Forfeited or expired, Weighted Average Grant-Date Fair Value | $ / shares 0
Balance at the end of the period, Weighted Average Grant-Date Fair Value | $ / shares $ 30.67
v3.10.0.1
Stock-Based Compensation - Summary of Acquisition-Related Restricted Shares and Restricted Stock Units Granted and Vested (Detail) - Restricted Shares and Restricted Stock Units (RSU's) [Member] - Acquisition-Related Restricted Shares [Member] - Symphony [Member]
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Granted, Shares | shares 124
Weighted average grant-date fair value | $ / shares $ 30.67
Fair value of vested | $ $ 0
v3.10.0.1
Segments and Geographic Information - Additional Information (Detail)
12 Months Ended
Dec. 31, 2018
Segment
Region
Dec. 31, 2017
Dec. 31, 2016
Segment Reporting Information [Line Items]      
Number of operating regions | Region 2    
Number of reportable segments | Segment 2    
Percentage of consolidated revenue of top ten clients 44.20% 46.90% 49.20%
Minimum [Member] | AT&T Corporation [Member]      
Segment Reporting Information [Line Items]      
Contract expiration date Jan. 01, 2019    
Maximum [Member] | AT&T Corporation [Member]      
Segment Reporting Information [Line Items]      
Contract expiration date Dec. 31, 2021    
v3.10.0.1
Segments and Geographic Information - Company's Reportable Segments (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Segment Reporting Information [Line Items]      
Revenues $ 1,625,687 $ 1,586,008 $ 1,460,037
Percentage of revenues 100.00% 100.00% 100.00%
Depreciation, net $ 57,350 $ 55,972 $ 49,013
Amortization of intangibles 15,542 21,082 19,377
Income (loss) from operations 63,202 87,042 92,373
Total other income (expense), net (6,285) (5,735) (3,489)
Income taxes (7,991) (49,091) (26,494)
Net income 48,926 32,216 62,390
Americas [Member]      
Segment Reporting Information [Line Items]      
Revenues 1,330,638 1,325,643 1,220,818
Americas [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Revenues $ 1,330,638 $ 1,325,643 $ 1,220,818
Percentage of revenues 81.90% 83.60% 83.60%
Depreciation, net $ 48,378 $ 47,730 $ 42,436
Amortization of intangibles 14,287 20,144 18,329
Income (loss) from operations 108,021 136,386 140,256
EMEA [Member]      
Segment Reporting Information [Line Items]      
Revenues 294,954 260,283 239,089
EMEA [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Revenues $ 294,954 $ 260,283 $ 239,089
Percentage of revenues 18.10% 16.40% 16.40%
Depreciation, net $ 5,952 $ 5,211 $ 4,532
Amortization of intangibles 1,255 938 1,048
Income (loss) from operations 16,507 16,067 18,380
Other Segment [Member]      
Segment Reporting Information [Line Items]      
Revenues $ 95 $ 82 $ 130
Percentage of revenues 0.00% 0.00% 0.00%
Depreciation, net $ 3,020 $ 3,031 $ 2,045
Income (loss) from operations (61,326) (65,411) (66,263)
Total other income (expense), net (6,285) (5,735) (3,489)
Income taxes $ (7,991) $ (49,091) $ (26,494)
v3.10.0.1
Segments and Geographic Information - Revenues by Segment from Major Customers (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Revenue, Major Customer [Line Items]      
Amount $ 1,625,687 $ 1,586,008 $ 1,460,037
AT&T Corporation [Member] | Customer Concentration Risk [Member]      
Revenue, Major Customer [Line Items]      
Amount $ 164,972 $ 220,010 $ 239,033
AT&T Corporation [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member]      
Revenue, Major Customer [Line Items]      
% of Revenues 10.10% 13.90% 16.40%
Americas [Member]      
Revenue, Major Customer [Line Items]      
Amount $ 1,330,638 $ 1,325,643 $ 1,220,818
Americas [Member] | AT&T Corporation [Member] | Customer Concentration Risk [Member]      
Revenue, Major Customer [Line Items]      
Amount $ 164,793 $ 220,010 $ 239,033
Americas [Member] | AT&T Corporation [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member]      
Revenue, Major Customer [Line Items]      
% of Revenues 12.40% 16.60% 19.60%
EMEA [Member]      
Revenue, Major Customer [Line Items]      
Amount $ 294,954 $ 260,283 $ 239,089
EMEA [Member] | AT&T Corporation [Member] | Customer Concentration Risk [Member]      
Revenue, Major Customer [Line Items]      
Amount $ 179    
EMEA [Member] | AT&T Corporation [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member]      
Revenue, Major Customer [Line Items]      
% of Revenues 0.10% 0.00% 0.00%
v3.10.0.1
Segments and Geographic Information - Total Revenue from Company's Next Largest Client (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Revenue, Major Customer [Line Items]      
Amount $ 1,625,687 $ 1,586,008 $ 1,460,037
Customer Concentration Risk [Member] | Next Largest Client [Member]      
Revenue, Major Customer [Line Items]      
Amount $ 105,852 $ 109,475 $ 90,508
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Next Largest Client [Member]      
Revenue, Major Customer [Line Items]      
% of Revenues 6.50% 6.90% 6.20%
Americas [Member]      
Revenue, Major Customer [Line Items]      
Amount $ 1,330,638 $ 1,325,643 $ 1,220,818
Americas [Member] | Customer Concentration Risk [Member] | Next Largest Client [Member]      
Revenue, Major Customer [Line Items]      
Amount $ 105,852 $ 109,475 $ 90,508
Americas [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Next Largest Client [Member]      
Revenue, Major Customer [Line Items]      
% of Revenues 8.00% 8.30% 7.40%
EMEA [Member]      
Revenue, Major Customer [Line Items]      
Amount $ 294,954 $ 260,283 $ 239,089
EMEA [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Next Largest Client [Member]      
Revenue, Major Customer [Line Items]      
% of Revenues 0.00% 0.00% 0.00%
v3.10.0.1
Segments and Geographic Information - Revenues by Segment from Major Customers Other than AT&T Corporation (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Revenue, Major Customer [Line Items]      
Amount $ 1,625,687 $ 1,586,008 $ 1,460,037
Customer Concentration Risk [Member] | Greater Than Ten Percent Of Segment Revenue Other Than A T And T Corporation      
Revenue, Major Customer [Line Items]      
Amount $ 104,856 $ 104,829 $ 96,115
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Greater Than Ten Percent Of Segment Revenue Other Than A T And T Corporation      
Revenue, Major Customer [Line Items]      
% of Revenues 6.40% 6.60% 6.60%
Americas [Member]      
Revenue, Major Customer [Line Items]      
Amount $ 1,330,638 $ 1,325,643 $ 1,220,818
Americas [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Greater Than Ten Percent Of Segment Revenue Other Than A T And T Corporation      
Revenue, Major Customer [Line Items]      
% of Revenues 0.00% 0.00% 0.00%
EMEA [Member]      
Revenue, Major Customer [Line Items]      
Amount $ 294,954 $ 260,283 $ 239,089
EMEA [Member] | Customer Concentration Risk [Member] | Greater Than Ten Percent Of Segment Revenue Other Than A T And T Corporation      
Revenue, Major Customer [Line Items]      
Amount $ 104,856 $ 104,829 $ 96,115
EMEA [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Greater Than Ten Percent Of Segment Revenue Other Than A T And T Corporation      
Revenue, Major Customer [Line Items]      
% of Revenues 35.50% 40.30% 40.20%
v3.10.0.1
Segments and Geographic Information - Operation by Geographic Location (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Segment Reporting Information [Line Items]      
Revenue $ 1,625,687 $ 1,586,008 $ 1,460,037
Long-Lived assets 309,449 301,067  
Goodwill 302,517 269,265 265,404
Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Goodwill 302,517 269,265  
Americas [Member]      
Segment Reporting Information [Line Items]      
Revenue 1,330,638 1,325,643 1,220,818
Goodwill 255,436 258,496 255,842
Americas [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Revenue 1,330,638 1,325,643 1,220,818
Long-Lived assets 249,384 266,683  
Goodwill 255,436 258,496  
Americas [Member] | Operating Segments [Member] | United States [Member]      
Segment Reporting Information [Line Items]      
Revenue 668,580 644,870 578,753
Long-Lived assets 197,167 219,476  
Americas [Member] | Operating Segments [Member] | The Philippines [Member]      
Segment Reporting Information [Line Items]      
Revenue 231,966 241,211 235,333
Long-Lived assets 9,840 15,199  
Americas [Member] | Operating Segments [Member] | Costa Rica [Member]      
Segment Reporting Information [Line Items]      
Revenue 127,963 132,542 124,823
Long-Lived assets 6,511 9,170  
Americas [Member] | Operating Segments [Member] | Canada [Member]      
Segment Reporting Information [Line Items]      
Revenue 102,353 112,367 115,226
Long-Lived assets 4,654 6,400  
Americas [Member] | Operating Segments [Member] | El Salvador [Member]      
Segment Reporting Information [Line Items]      
Revenue 81,156 75,800 69,937
Long-Lived assets 4,810 4,048  
Americas [Member] | Operating Segments [Member] | China [Member]      
Segment Reporting Information [Line Items]      
Revenue 34,942 38,880 34,851
Long-Lived assets 3,379 3,840  
Americas [Member] | Operating Segments [Member] | Australia [Member]      
Segment Reporting Information [Line Items]      
Revenue 31,811 28,442 24,267
Long-Lived assets 13,693 1,256  
Americas [Member] | Operating Segments [Member] | Mexico [Member]      
Segment Reporting Information [Line Items]      
Revenue 24,998 25,496 18,167
Long-Lived assets 4,077 2,812  
Americas [Member] | Operating Segments [Member] | Colombia [Member]      
Segment Reporting Information [Line Items]      
Revenue 18,067 16,042 8,901
Long-Lived assets 2,371 2,710  
Americas [Member] | Operating Segments [Member] | Other [Member]      
Segment Reporting Information [Line Items]      
Revenue 8,802 9,993 10,560
Long-Lived assets 2,882 1,772  
EMEA [Member]      
Segment Reporting Information [Line Items]      
Revenue 294,954 260,283 239,089
Goodwill 47,081 10,769 9,562
EMEA [Member] | Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Revenue 294,954 260,283 239,089
Long-Lived assets 43,086 15,817  
Goodwill 47,081 10,769  
EMEA [Member] | Operating Segments [Member] | Other [Member]      
Segment Reporting Information [Line Items]      
Revenue 56,247 51,635 41,240
Long-Lived assets 8,468 7,241  
EMEA [Member] | Operating Segments [Member] | Germany [Member]      
Segment Reporting Information [Line Items]      
Revenue 91,703 81,634 78,982
Long-Lived assets 3,395 2,460  
EMEA [Member] | Operating Segments [Member] | Sweden [Member]      
Segment Reporting Information [Line Items]      
Revenue 55,491 56,843 59,313
Long-Lived assets 1,222 1,171  
EMEA [Member] | Operating Segments [Member] | United Kingdom [Member]      
Segment Reporting Information [Line Items]      
Revenue 57,308 42,247 38,167
Long-Lived assets 28,036 3,016  
EMEA [Member] | Operating Segments [Member] | Romania [Member]      
Segment Reporting Information [Line Items]      
Revenue 34,205 27,924 21,387
Long-Lived assets 1,965 1,929  
Other Segment [Member]      
Segment Reporting Information [Line Items]      
Revenue 95 82 $ 130
Long-Lived assets $ 16,979 $ 18,567  
v3.10.0.1
Other Income (Expense) - Other Income (Expense), Net (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Other Nonoperating Income Expense [Abstract]      
Foreign currency transaction gains (losses) $ 2,029 $ (548) $ 3,348
Gains (losses) on derivative instruments not designated as hedges (1,751) 143 (2,270)
Other miscellaneous income (expense) (1,659) 44 (186)
Other income (expense) (2,248) 1,258 1,474
Other Income (Expense), Net [Member]      
Other Nonoperating Income Expense [Abstract]      
Gains (losses) on investments held in rabbi trust $ (867) $ 1,619 $ 582
v3.10.0.1
Related Party Transactions - Additional Information (Detail) - USD ($)
1 Months Ended 12 Months Ended
Jan. 31, 2008
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Schedule of Other Related Party Transactions [Line Items]        
Duration of lease 20 years      
Payment to landlord under the lease terms   $ 500,000 $ 500,000 $ 400,000
Equity Method Investee [Member] | XSell Technologies Inc [Member]        
Schedule of Other Related Party Transactions [Line Items]        
Related party transaction with equity method investee   $ 200,000 $ 0 $ 0
v3.10.0.1
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Allowance for Doubtful Accounts [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period $ 2,958 $ 2,925 $ 3,574
Charged (Credited) to Costs and Expenses 323 63 89
Additions (Deductions) (185) (30) (738)
Balance at End of Period 3,096 2,958 2,925
Valuation Allowance for Net Deferred Tax Assets [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period 32,443 30,221 30,065
Charged (Credited) to Costs and Expenses (144) 2,222 156
Balance at End of Period 32,299 32,443 30,221
Reserves for Value Added Tax Receivables [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period 76 77 283
Charged (Credited) to Costs and Expenses     (148)
Additions (Deductions) (4) (1) (58)
Balance at End of Period $ 72 $ 76 $ 77