SYKES ENTERPRISES INC, 10-Q filed on 5/5/2021
Quarterly Report
v3.21.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2021
Apr. 15, 2021
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2021  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Trading Symbol SYKE  
Entity Registrant Name Sykes Enterprises, Incorporated  
Entity Central Index Key 0001010612  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Shell Company false  
Entity File Number 0-28274  
Entity Tax Identification Number 56-1383460  
Entity Address, Address Line One 400 North Ashley Drive  
Entity Address, Address Line Two Suite 2800  
Entity Address, City or Town Tampa  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 33602  
City Area Code 813  
Local Phone Number 274-1000  
Entity Filer Category Large Accelerated Filer  
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Common Stock, Shares Outstanding   39,778,641
Entity Interactive Data Current Yes  
Title of 12(b) Security Common Stock, $0.01 par value  
Security Exchange Name NASDAQ  
Entity Incorporation, State or Country Code FL  
Document Quarterly Report true  
Document Transition Report false  
v3.21.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 112,763 $ 103,077
Receivables, net of allowance of $4.8 million and $4.8 million, respectively 410,616 415,746
Prepaid expenses 22,313 21,348
Other current assets 21,685 19,718
Total current assets 567,377 559,889
Property and equipment, net 115,229 121,084
Operating lease right-of-use assets 145,780 158,866
Goodwill, net 299,296 299,409
Intangibles, net 231,158 233,975
Deferred charges and other assets 62,564 62,582
Total assets 1,421,404 1,435,805
Current liabilities:    
Accounts payable 26,943 32,049
Accrued employee compensation and benefits 141,638 147,212
Income taxes payable 5,160 3,521
Deferred revenue and customer liabilities 25,744 24,802
Operating lease liabilities 53,043 55,928
Other accrued expenses and current liabilities 29,235 31,994
Total current liabilities 281,763 295,506
Long-term debt 48,000 63,000
Long-term income tax liabilities 21,477 21,586
Long-term operating lease liabilities 116,496 126,336
Other long-term liabilities 37,205 35,723
Total liabilities 504,941 542,151
Commitments and loss contingencies (Note 11)
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; 39,779 and 39,614 shares issued, respectively 397 396
Additional paid-in capital 299,635 298,037
Retained earnings 663,978 639,000
Accumulated other comprehensive income (loss) (44,478) (40,999)
Treasury stock at cost: 142 and 135 shares, respectively (3,069) (2,780)
Total shareholders' equity 916,463 893,654
Total liabilities and shareholders' equity $ 1,421,404 $ 1,435,805
v3.21.1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2021
Dec. 31, 2020
Statement Of Financial Position [Abstract]    
Accounts Receivable, Allowance for Credit Loss $ 4.8 $ 4.8
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 39,779,000 39,614,000
Treasury stock, shares 142,000 135,000
v3.21.1
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Statement [Abstract]    
Revenues $ 457,886 $ 411,166
Operating expenses:    
Direct salaries and related costs 299,477 266,945
General and administrative 109,627 103,247
Depreciation, net 13,115 12,461
Amortization of intangibles 2,987 4,119
Impairment of long-lived assets 1,150  
Total operating expenses 426,356 386,772
Income from operations 31,530 24,394
Other income (expense):    
Interest income 98 263
Interest (expense) (423) (720)
Other income (expense), net (322) (4,793)
Total other income (expense), net (647) (5,250)
Income before income taxes 30,883 19,144
Income taxes 5,905 5,226
Net income $ 24,978 $ 13,918
Net income per common share:    
Basic $ 0.63 $ 0.34
Diluted $ 0.63 $ 0.34
Weighted average common shares outstanding:    
Basic 39,641 41,132
Diluted 39,956 41,334
v3.21.1
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Statement Of Income And Comprehensive Income [Abstract]    
Net income $ 24,978 $ 13,918
Other comprehensive income (loss), net of taxes:    
Foreign currency translation adjustments (4,463) (21,350)
Unrealized gain (loss) on cash flow hedging instruments, net of taxes 991 (1,342)
Unrealized actuarial gain (loss) related to pension liability, net of taxes (7) (17)
Unrealized gain (loss) on postretirement obligation, net of taxes   (22)
Other comprehensive income (loss), net of taxes (3,479) (22,731)
Comprehensive income (loss) $ 21,499 $ (8,813)
v3.21.1
Condensed 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, 2019 $ 874,475 $ 416 $ 288,935 $ 634,668 $ (47,001) $ (2,543)
Beginning Balance, shares at Dec. 31, 2019   41,549        
Stock-based compensation expense 1,860   1,860      
Issuance of common stock under equity award plans, net of forfeitures   $ (2) 69     (67)
Issuance of common stock under equity award plans, net of forfeitures, Share   (146)        
Shares withheld for taxes paid related to net share settlement of equity awards (1,009)   (1,009)      
Shares withheld for taxes paid related to net share settlement of equity awards, Share   (39)        
Repurchase of common stock (22,909)         (22,909)
Retirement of treasury stock   $ (9) (26) (22,874)   22,909
Retirement of treasury stock, shares   (860)        
Comprehensive income (loss) (8,813)     13,918 (22,731)  
Ending Balance at Mar. 31, 2020 843,604 $ 405 289,829 625,712 (69,732) (2,610)
Ending Balance, shares at Mar. 31, 2020   40,504        
Beginning Balance at Dec. 31, 2020 893,654 $ 396 298,037 639,000 (40,999) (2,780)
Beginning Balance, shares at Dec. 31, 2020   39,614        
Stock-based compensation expense 4,751   4,751      
Issuance of common stock under equity award plans, net of forfeitures   $ 2 287     (289)
Issuance of common stock under equity award plans, net of forfeitures, Share   241        
Shares withheld for taxes paid related to net share settlement of equity awards (3,441) $ (1) (3,440)      
Shares withheld for taxes paid related to net share settlement of equity awards, Share   (76)        
Repurchase of common stock (22,909)          
Comprehensive income (loss) 21,499     24,978 (3,479)  
Ending Balance at Mar. 31, 2021 $ 916,463 $ 397 $ 299,635 $ 663,978 $ (44,478) $ (3,069)
Ending Balance, shares at Mar. 31, 2021   39,779        
v3.21.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Cash flows from operating activities:    
Net income $ 24,978 $ 13,918
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 13,127 12,519
Amortization of intangibles 2,987 4,119
Amortization of deferred grants (240) (85)
Impairment losses 1,150  
Unrealized foreign currency transaction (gains) losses, net 1,212 474
Stock-based compensation expense 4,751 1,860
Deferred income tax provision (benefit) (201) 973
Bad debt expense (reversals) 236 586
Unrealized (gains) losses and premiums on financial instruments, net (668) 280
(Earnings) losses from equity method investees 675 615
Other 411 124
Changes in assets and liabilities, net of acquisitions:    
Receivables, net 1,535 1,450
Prepaid expenses (1,034) (4,570)
Other current assets (692) 68
Deferred charges and other assets (197) 213
Accounts payable (3,608) (5,124)
Income taxes receivable / payable 1,928 478
Accrued employee compensation and benefits (4,712) 559
Other accrued expenses and current liabilities (1,171) (1,541)
Deferred revenue and customer liabilities 740 (761)
Other long-term liabilities (125) 1,206
Operating lease assets and liabilities (843) 1,188
Net cash provided by operating activities 40,239 28,549
Cash flows from investing activities:    
Capital expenditures (9,376) (11,818)
Cash paid for business acquisitions, net of cash acquired (165)  
Purchase of intangible assets (252)  
Other 18 5
Net cash (used for) investing activities (9,775) (11,813)
Cash flows from financing activities:    
Payments of long-term debt (15,000) (21,000)
Proceeds from issuance of long-term debt   23,000
Cash paid for repurchase of common stock   (22,909)
Taxes paid related to net share settlement of equity awards (3,441) (1,009)
Net cash (used for) financing activities (18,441) (21,918)
Effects of exchange rates on cash, cash equivalents and restricted cash (2,401) (3,920)
Net increase (decrease) in cash, cash equivalents and restricted cash 9,622 (9,102)
Cash, cash equivalents and restricted cash – beginning 104,396 129,185
Cash, cash equivalents and restricted cash – ending 114,018 120,083
Supplemental disclosures of cash flow information:    
Cash paid for amounts included in the measurement of operating lease liabilities 15,387 13,578
Cash paid during period for interest 324 567
Cash paid during period for income taxes 5,083 3,799
Non-cash transactions:    
Net right-of-use assets arising from new or remeasured operating lease liabilities 2,748 9,095
Capital expenditures incurred but not yet paid 4,818 4,154
Unrealized gain (loss) on postretirement obligation, net of taxes, in accumulated other comprehensive income (loss)   (22)
Property and equipment acquired under grant agreement 1,123  
Shares repurchased for tax withholding on equity awards included in current liabilities $ 212 $ 33
v3.21.1
Overview and Basis of Presentation
3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Overview and Basis of Presentation

Note 1. Overview and Basis of Presentation

Business Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) is a leading full lifecycle provider of global customer experience management services, multichannel demand generation and digital transformation. The Company provides differentiated full lifecycle customer experience management solutions and services primarily to Global 2000 companies and their end customers principally in the financial services, technology, communications, transportation & leisure and healthcare industries. The Company’s differentiated full lifecycle services platform effectively engages customers at every touchpoint within the customer journey, including digital media and acquisition, sales expertise, customer service, technical support and retention, many of which can be optimized through a suite of digital transformation capabilities under its SYKES Digital Services (“SDS”) group, which spans robotic process automation (“RPA”), self-service, insight analytics and digital learning.  In addition to digital transformation, the Company also provides artificial intelligence (“AI”) solutions that can be embedded and leveraged across its lifecycle offerings. Utilizing SYKES’ integrated onshore/offshore global delivery model, the Company provides its services through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. The Company 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 RPA provider Symphony Ventures Ltd (“Symphony”) coupled with its investment in 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.

 

Coronavirus

On March 11, 2020, the World Health Organization characterized the novel coronavirus (“COVID-19”) a pandemic. The global nature, rapid spread and continually evolving response by governments throughout the world to combat the spread has had a negative impact on the global economy. Certain of the Company’s customer experience management centers have been impacted by local government actions restricting facility access or are operating at lower capacity utilization levels to achieve social distancing. The Company is committed to the health and safety of its workforce and ensuring business continuity for the brands it serves. In response, the Company has shifted as many employees as possible to a work-at-home model. As of the middle of April 2021, approximately 70% of agents assigned to the Company’s brick-and-mortar facilities have temporarily transitioned to a work-at-home model, 25% are working in centers and 5% of the Company’s agents are idle primarily due to the lack of technical infrastructure to work from home. The Company’s operations in the Philippines, El Salvador and Mexico have been most impacted by the governmental restrictions.

The Company continues to closely monitor the prevalence of COVID-19 and the vaccination rates in the communities where its centers are located as well as guidance from public health authorities, federal and local agencies and municipalities. The Company will work with employees and clients to transition agents back to its centers based on that guidance, but risk further disruption to the business as a result of COVID-19 and government-imposed restrictions. Over time, the Company anticipates a permanent transition to a work-at-home or hybrid model for a portion of its workforce.

Exit of Leased Space

The Company continues to reevaluate its real estate footprint in connection with the transition of a portion of its workforce to a permanent remote working environment in both the Americas and EMEA. Since April 2020, the Company has decided to terminate, sublease or abandon leases prior to the end of their lease terms at certain of its sites as approximately 3,500 seats transitioned from brick and mortar to at home agents. As such, the Company recorded cumulative impairments of right-of-use (“ROU”) assets of $13.4 million and impairments of property and equipment of $7.2 million related to these actions since the initiation of its reevaluation in April 2020, of which $0.7

million of ROU assets and $0.1 million of property and equipment impairments were recorded during the three months ended March 31, 2021. See Note 4, Fair Value, in the accompanying “Notes to Condensed Consolidated Financial Statements” for further information.

 

Taylor Media Corp. Acquisition

On December 31, 2020, through its wholly-owned subsidiary, Clear Link Technologies, LLC, the Company completed the acquisition of Taylor Media Corp. (“TMC”), a personal finance digital media company and owner of The Penny Hoarder. Of the total initial purchase price of $104.9 million, $87.2 million was paid upon closing using $63.0 million of additional borrowings under our credit agreement as well as cash on hand. Of the remaining $17.7 million of the purchase price, $0.2 million was used to repay outstanding debt and $17.5 million of the purchase price was deferred and is payable on December 31, 2027, the seventh anniversary of the closing. In the event TMC’s previous owner remains employed by the Company or one of its subsidiaries on December 31, 2022, the second anniversary of the closing, the deferred payment will be accelerated and due at that time. The deferred purchase price was included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020.

 

The Company accounted for the TMC acquisition in accordance with ASC 805, Business Combinations (“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 this analysis by June 30, 2021 and any resulting adjustments will be recorded in accordance with ASC 805. The initial purchase price allocation resulted in $2.2 million of cash, $6.7 million of accounts receivable, $87.9 million of intangible assets, primarily domain names, content library and customer relationships, $4.2 million of other assets, $9.0 million of goodwill and $5.1 million of liabilities.

 

The Company has reflected TMC’s assets and liabilities in its consolidated balance sheet as of December 31, 2020 and the results of TMC’s operations have been reflected in its consolidated financial statements in the Americas segment since January 1, 2021.

 

Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2021. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021.

 

Principles of Consolidation The condensed 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 condensed consolidated financial statements in conformity with 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.

 

Due to the novel coronavirus (“COVID-19”) pandemic, there has been uncertainty and disruption in the global economy and financial markets. Other than where noted, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date and time of issuance of the condensed consolidated financial statements. These estimates may change, as new events occur, and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.

 

Subsequent Events Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. There were no material subsequent events that required recognition or disclosure in the accompanying condensed 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. 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 Condensed Consolidated Balance Sheets that sum to the amounts reported in the Condensed Consolidated Statements of Cash Flows (in thousands):

 

 

March 31, 2021

 

 

December 31, 2020

 

 

March 31, 2020

 

 

December 31, 2019

 

Cash and cash equivalents

$

112,763

 

 

$

103,077

 

 

$

118,422

 

 

$

127,246

 

Restricted cash included in "Other current assets"

 

288

 

 

 

355

 

 

 

438

 

 

 

568

 

Restricted cash included in "Deferred charges and

   other assets"

 

967

 

 

 

964

 

 

 

1,223

 

 

 

1,371

 

 

$

114,018

 

 

$

104,396

 

 

$

120,083

 

 

$

129,185

 

 

Allowance for Doubtful Accounts — The Company recorded a $0.2 million and $0.6 million increase to the allowance for credit losses related to its short-term trade receivables primarily as a result of deterioration in certain clients’ credit ratings reflecting current and expected economic conditions during the three months ended March 31, 2021 and 2020, respectively, and wrote off $0.1 million and $0.3 million of the allowance for credit losses related to certain short-term trade receivables deemed to be uncollectible during the three months ended March 31, 2021 and 2020, respectively. The Company recorded a $0.1 million increase to the allowance for credit losses related to its long-term trade receivables during the three months ended March 31, 2021 (none in 2020).

 

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

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Customer-acquisition advertising costs

 

19,565

 

 

 

10,182

 

 

New Accounting Standards Not Yet Adopted

 

Reference Rate Reform

 

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Compensation – Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides companies with optional guidance, including expedients and exceptions for applying generally accepted accounting principles to contracts and other transactions affected by reference rate reform, such as the London Interbank Offered Rate (“LIBOR”).  These amendments are effective for all entities as of March 12, 2020 and an entity may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact of the transition from LIBOR to alternative reference interest rates but does not expect a material impact on its financial position, results of operations or cash flows.

 

New Accounting Standards Recently Adopted

 

Income Taxes

 

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes (“ASU 2019-12”). These amendments simplify the accounting for income taxes by eliminating certain exceptions and also clarifying and amending certain aspects of existing guidance.  These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020.  Most of the amendments are required to be applied on a prospective basis, while certain amendments must be applied on a

retrospective or modified retrospective basis.  Early adoption was permitted, including adoption in any interim period for which financial statements had not yet been issued. The Company’s adoption of ASU 2019-12 on January 1, 2021 did not have a material impact on its financial position, results of operations, cash flows or disclosures.

 

Significant Accounting Policies

 

There have been no new or material changes to the significant accounting policies disclosed in Note 1, Overview and Summary of Significant Accounting Policies, in the “Notes to the Consolidated Financial Statements” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

v3.21.1
Revenues
3 Months Ended
Mar. 31, 2021
Revenue From Contract With Customer [Abstract]  
Revenues

Note 2. Revenues

Revenues from Contracts with Customers

Revenues for customer experience management solutions and services are recognized over time using output methods such as a per minute, per hour, per call, per transaction or per time and materials basis. RPA services revenues are primarily recognized over time using output methods such as per time and materials basis. Revenues from fulfillment services are recognized upon shipment to the customer and satisfaction of all obligations. Revenues from enterprise support services are recognized over time using output methods such as number of positions filled.

Disaggregated Revenues

The Company disaggregates its revenues from contracts with customers by service type and delivery location (see Note 14, 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 for the periods indicated (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

 

Amount

 

 

% of Revenue

 

 

Amount

 

 

% of Revenue

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer experience management solutions and services

$

363,453

 

 

79.4%

 

 

$

332,614

 

 

80.9%

 

Other revenues

 

266

 

 

0.0%

 

 

 

312

 

 

0.1%

 

Total Americas

 

363,719

 

 

79.4%

 

 

 

332,926

 

 

81.0%

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer experience management solutions and services

 

89,336

 

 

19.5%

 

 

 

72,633

 

 

17.7%

 

Other revenues

 

4,831

 

 

1.1%

 

 

 

5,600

 

 

1.3%

 

Total EMEA

 

94,167

 

 

20.6%

 

 

 

78,233

 

 

19.0%

 

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

0.0%

 

 

 

7

 

 

0.0%

 

Total Other

 

 

 

0.0%

 

 

 

7

 

 

0.0%

 

 

$

457,886

 

 

100.0%

 

 

$

411,166

 

 

100.0%

 

 

Trade Accounts Receivable

 

The Company’s noncurrent trade accounts receivable result from contracts with customers that include renewal provisions and contracts with customers under multi-year arrangements. The Company’s trade accounts receivable, net, consisted of the following (in thousands):

 

 

March 31, 2021

 

 

December 31, 2020

 

Trade accounts receivable, net, current (1)

$

393,157

 

 

$

398,112

 

Trade accounts receivable, net, noncurrent (2)

 

29,833

 

 

 

30,021

 

 

$

422,990

 

 

$

428,133

 

 

(1) Included in “Receivables, net” in the accompanying Condensed Consolidated Balance Sheets.

(2) Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.  

 

Deferred Revenue and Customer Liabilities

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

 

 

March 31, 2021

 

 

December 31, 2020

 

Deferred revenue

$

2,772

 

 

$

2,916

 

Customer arrangements with termination rights

 

15,326

 

 

 

15,771

 

Estimated refund liabilities

 

7,646

 

 

 

6,115

 

 

$

25,744

 

 

$

24,802

 

 

The Company expects to recognize the majority of its deferred revenue as of March 31, 2021 over the next 180 days. Revenues of $2.8 million and $2.7 million were recognized during the three months ended March 31, 2021 and 2020, respectively, from amounts included in deferred revenue at December 31, 2020 and 2019, respectively.

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.

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

v3.21.1
Leases
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases

Note 3. Leases

 

The Company leases facilities for its corporate headquarters, many of its customer experience management centers, several regional support offices and data centers. These leases are classified as operating leases in accordance with ASC 842, Leases, and are included in “Operating lease right-of-use assets,” “Operating lease liabilities” and “Long-term operating lease liabilities” in the accompanying Condensed Consolidated Balance Sheet as of March 31, 2021. The Company has no finance leases.

Lease costs, net of sublease income, of $15.6 million and $16.0 million for the three months ended March 31, 2021 and 2020, respectively, were primarily included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

Additional supplemental information related to leases was as follows:

 

March 31, 2021

 

 

December 31, 2020

 

Weighted average remaining lease term of operating leases

4.1 years

 

 

4.3 years

 

Weighted average discount rate of operating leases

 

3.4

%

 

 

3.4

%

 

Maturities of operating lease liabilities as of March 31, 2021 were as follows (in thousands):

 

Amount

 

2021 (remainder of the year)

$

45,075

 

2022

 

48,783

 

2023

 

32,335

 

2024

 

22,998

 

2025

 

14,755

 

2026 and thereafter

 

18,753

 

Total future lease payments

 

182,699

 

Less: Imputed interest

 

13,160

 

Present value of future lease payments

 

169,539

 

Less: Operating lease liabilities

 

53,043

 

Long-term operating lease liabilities

$

116,496

 

 

Exit of Leased Space

The Company continues to reevaluate its real estate footprint in connection with a transition of a portion of its workforce to a permanent remote working environment in both the Americas and EMEA. Since April 2020, the Company decided to terminate, sublease or abandon leases prior to the end of their lease terms at certain of its sites and recorded impairments of ROU assets as a result. See Note 4, Fair Value, for further information.

v3.21.1
Fair Value
3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value

Note 4. Fair Value

 

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) defines fair value and establishes a framework for measuring fair value. ASC 820 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.  Additionally, ASC 820 requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for how 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 exchange 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 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, if applicable.

 

Cash, Short-Term and Other Investments and Accounts Payable The carrying values for cash, short-term and other investments and accounts payable approximate their fair values.

 

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.

 

Foreign Currency Contracts The Company enters into foreign currency forward contracts and options over the counter and values such contracts, including premiums paid on options, at fair value 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.

 

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 7, Investments Held in Rabbi Trust.

 

The Company's assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consisted 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

 

 

March 31, 2021

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

905

 

 

$

 

 

$

905

 

 

$

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

13,558

 

 

 

13,558

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

4,450

 

 

 

4,450

 

 

 

 

 

 

 

 

$

18,913

 

 

$

18,008

 

 

$

905

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

1,411

 

 

$

 

 

$

1,411

 

 

$

 

 

$

1,411

 

 

$

 

 

$

1,411

 

 

$

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

December 31, 2020

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

337

 

 

$

 

 

$

337

 

 

$

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

11,263

 

 

 

11,263

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

5,517

 

 

 

5,517

 

 

 

 

 

 

 

 

$

17,117

 

 

$

16,780

 

 

$

337

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

2,478

 

 

$

 

 

$

2,478

 

 

$

 

 

$

2,478

 

 

$

 

 

$

2,478

 

 

$

 

 

(1) See Note 6, Financial Derivatives, for the classification in the accompanying Condensed Consolidated Balance Sheets.  

(2) Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets.  See Note 7, Investments Held in Rabbi Trust.

Non-Recurring Fair Value

 

Certain assets are not required to be measured at fair value on a recurring basis and are reported at their carrying values, including goodwill, other intangible assets, other long-lived assets, ROU assets and equity method investments. The carrying value of these assets is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable (and at least annually for goodwill and indefinite-lived intangible assets), and if applicable, written down to fair value.

 

The following table summarizes the total impairment losses in the accompanying Condensed Consolidated Statements of Operations related to nonrecurring fair value measurements of certain assets (none in 2020) (in thousands):

 

 

Three Months Ended

March 31, 2021

 

Americas:

 

 

 

Property and equipment, net

$

56

 

Operating lease right-of-use assets

 

301

 

 

 

357

 

EMEA:

 

 

 

Property and equipment, net

 

77

 

Operating lease right-of-use assets

 

398

 

 

 

475

 

Other:

 

 

 

Property and equipment, net

 

318

 

 

 

 

 

 

$

1,150

 

 

The Company continues to reevaluate its real estate footprint in connection with a shift of a portion of its workforce to a permanent remote working environment in both the Americas and EMEA and transitioned approximately 3,500 seats from brick and mortar to at home agents since April 2020. The Company decided to terminate, sublease or abandon leases prior to the end of their lease terms at certain of its sites and recorded impairment losses during the three months ended March 31, 2021 related to the exit of leased facilities and the leasehold improvements, equipment, furniture and fixtures located in these sites which were not recoverable. As the fair value of the ROU assets was less than the carrying value, the Company recognized an impairment of ROU assets, reducing the carrying value of the ROU assets to an estimated fair value of $0.4 million. The fair value of the ROU assets where the Company intends to sublease was estimated using Level 2 inputs such as market comparables to estimate future cash flows expected from sublease income over the remaining lease terms. Further changes in the estimated amount or timing of cash flows from sublease arrangements could result in additional impairment charges. The impairment of property and equipment reduced the carrying amount of the applicable assets to their fair value of $0.

 

The Company also recorded an impairment charge of $0.3 million during the three months ended March 31, 2021 related to software that was no longer being utilized.  The impairment of the software reduced the carrying value of the applicable asset to its fair value of $0.

v3.21.1
Goodwill and Intangible Assets
3 Months Ended
Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

Note 5. Goodwill and Intangible Assets

Intangible Assets

The following table presents the Company’s purchased intangible assets as of March 31, 2021 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

195,257

 

 

$

(136,132

)

 

$

59,125

 

 

 

10

 

Trade names and trademarks

 

7,949

 

 

 

(3,485

)

 

 

4,464

 

 

 

8

 

Non-compete agreements

 

1,053

 

 

 

(794

)

 

 

259

 

 

 

3

 

Content library

 

4,829

 

 

 

(744

)

 

 

4,085

 

 

 

5

 

Proprietary software

 

870

 

 

 

(870

)

 

 

 

 

 

5

 

 

 

209,958

 

 

 

(142,025

)

 

 

67,933

 

 

 

9

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

163,225

 

 

 

 

 

 

163,225

 

 

N/A

 

 

$

373,183

 

 

$

(142,025

)

 

$

231,158

 

 

 

 

 

 

The following table presents the Company’s purchased intangible assets as of December 31, 2020 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

195,116

 

 

$

(133,689

)

 

$

61,427

 

 

 

10

 

Trade names and trademarks

 

7,918

 

 

 

(3,225

)

 

 

4,693

 

 

 

8

 

Non-compete agreements

 

1,100

 

 

 

(712

)

 

 

388

 

 

 

3

 

Content library

 

4,851

 

 

 

(551

)

 

 

4,300

 

 

 

5

 

Proprietary software

 

870

 

 

 

(835

)

 

 

35

 

 

 

5

 

 

 

209,855

 

 

 

(139,012

)

 

 

70,843

 

 

 

9

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

163,132

 

 

 

 

 

 

163,132

 

 

N/A

 

 

$

372,987

 

 

$

(139,012

)

 

$

233,975

 

 

 

 

 

 

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to March 31, 2021 is as follows (in thousands):

 

 

Amount

 

2021 (remainder of the year)

$

8,749

 

2022

 

10,414

 

2023

 

8,309

 

2024

 

8,074

 

2025

 

7,961

 

2026

 

6,980

 

2027 and thereafter

 

17,446

 

 

Goodwill

Changes in goodwill for the three months ended March 31, 2021 consisted of the following (in thousands):

 

 

January 1, 2021

 

 

Acquisition-

Related (1)

 

 

Impairment

 

 

Effect of

Foreign

Currency

 

 

March 31, 2021

 

Americas

$

269,472

 

 

$

176

 

 

$

 

 

$

151

 

 

$

269,799

 

EMEA

 

29,937

 

 

 

 

 

 

 

 

 

(440

)

 

 

29,497

 

 

$

299,409

 

 

$

176

 

 

$

 

 

$

(289

)

 

$

299,296

 

 

 

Changes in goodwill for the year ended December 31, 2020 consisted of the following (in thousands):

 

 

January 1, 2020

 

 

Acquisition-

Related (1)

 

 

Impairment (2)

 

 

Effect of

Foreign

Currency

 

 

December 31, 2020

 

Americas

$

259,953

 

 

$

8,851

 

 

$

 

 

$

668

 

 

$

269,472

 

EMEA

 

51,294

 

 

 

 

 

 

(21,792

)

 

 

435

 

 

 

29,937

 

 

$

311,247

 

 

$

8,851

 

 

$

(21,792

)

 

$

1,103

 

 

$

299,409

 

 

(1) The three months ended March 31, 2021 includes the impact of adjustments to acquired goodwill upon refinements of the purchase price allocation of TMC’s assets acquired and liabilities assumed.  The year ended December 31, 2020 includes the goodwill recorded related to the TMC acquisition.

(2) The year ended December 31, 2020 includes the impairment of a portion of the Symphony reporting unit’s goodwill.

 

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, 2020.  Under ASC 350, Intangibles – Goodwill and Other, 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 projected long-term growth rate and determination of the Company’s weighted average cost of capital (“WACC”), which are classified as Level 3 inputs. 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, 2020, the Company had eight reporting units, seven of which had goodwill. The Company concluded that goodwill was not impaired for six of its seven of its reporting units with goodwill, based on generally accepted valuation techniques and the significant assumptions outlined above.  The fair values of three of the seven reporting units were substantially in excess of their carrying value. As part of this analysis, the Company considered the ongoing deterioration in general economic and market conditions due to the pandemic and its impact on each of the Company’s reporting units’ performance. The Clearlink, Latin America and Qelp reporting units’ fair value exceeded their respective carrying values, although the fair value cushion was not substantial. The Clearlink, Latin America and Qelp reporting units are at risk of future impairment if projected operating results are not met or other inputs into the fair value measurement model change.

The Symphony reporting unit’s carrying value exceeded its fair value as of the July 31, 2020 annual impairment analysis, which resulted in a non-cash goodwill impairment of $21.8 million. Symphony’s on-site consulting model has been negatively impacted by travel and shelter-in-place restrictions imposed by governments, as well as the shift by businesses to work from home in an attempt to reduce the spread of COVID-19. These restrictions have continued longer than initially anticipated and have resulted in further declines in the cash flow projections at Symphony for 2020 as well as the Company’s projections for 2021 at the time of the annual impairment test. There is significant uncertainty regarding the length of time these restrictions will remain in place. An additional impairment charge may arise in the future if Symphony’s operations experience a protracted delay in the resumption

of its operations or a significant shift in client demand results from the economic downturn. As of March 31, 2021, the Company believes there was no impairment related to Symphony’s remaining $19.3 million of goodwill as no triggering events were identified during the three months ended March 31, 2021.

As of March 31, 2021, the Company believes there were no indicators of impairment related to Clearlink’s $83.4 million of goodwill (which includes goodwill from the TMC acquisition), Latin America’s $18.2 million of goodwill and Qelp’s $10.2 million of goodwill. It is possible that future changes in circumstances, including a more prolonged and/or severe pandemic, or future changes in the variable associated with the judgments, assumptions and estimates used in assessing the fair value of the reporting units, could require the Company to record additional non-cash impairment charges.

v3.21.1
Financial Derivatives
3 Months Ended
Mar. 31, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Financial Derivatives

Note 6. 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 foreign currency 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 Condensed Consolidated Balance Sheets were as follows (in thousands):

 

 

March 31, 2021

 

 

December 31, 2020

 

Deferred gains (losses) in AOCI

$

(1,212

)

 

$

(2,188

)

Tax on deferred gains (losses) in AOCI

 

12

 

 

 

(3

)

Deferred gains (losses) in AOCI, net of taxes

$

(1,200

)

 

$

(2,191

)

Deferred gains (losses) expected to be reclassified to "Revenues"

   from AOCI during the next twelve months

$

(1,031

)

 

 

 

 

 

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.

Non-Designated Hedges

Foreign Currency 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.  

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

 

 

March 31, 2021

 

December 31, 2020

 

Contract Type

Notional

Amount

in USD

 

 

Settle

Through

Date

 

Notional

Amount

in USD

 

 

Settle

Through

Date

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Options:

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

$

42,000

 

 

December 2021

 

$

12,000

 

 

June 2021

 

Forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Costa Rican Colones

 

30,000

 

 

August 2022

 

 

36,000

 

 

December 2021

 

Euros/Hungarian Forints

 

1,689

 

 

December 2021

 

 

 

 

 

 

Euros/Romanian Leis

 

11,000

 

 

December 2021

 

 

 

 

 

 

Non-designated hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Forwards

 

12,481

 

 

November 2021

 

 

12,439

 

 

November 2021

 

 

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 $0.9 million and $0.3 million as of March 31, 2021 and December 31, 2020, 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 $0.8 million and $0.3 million as of March 31, 2021 and December 31, 2020, respectively, and liability positions of $1.3 million and $2.4 as of March 31, 2021 and December 31, 2020, 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 Condensed 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 Condensed Consolidated Balance Sheets (in thousands):

 

 

 

 

 

Derivative Assets

 

 

 

Balance Sheet Location

 

March 31, 2021

 

 

December 31, 2020

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

$

511

 

 

$

154

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

 

394

 

 

 

183

 

Total derivative assets

 

 

 

$

905

 

 

$

337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liabilities

 

 

 

Balance Sheet Location

 

March 31, 2021

 

 

December 31, 2020

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

$

1,155

 

 

$

2,253

 

Foreign currency contracts

 

Other long-term liabilities

 

 

181

 

 

 

 

 

 

 

 

 

1,336

 

 

 

2,253

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

 

75

 

 

 

225

 

Total derivative liabilities

 

 

 

$

1,411

 

 

$

2,478

 

 

The following table presents the effect of the Company’s derivative instruments included in the accompanying condensed consolidated financial statements (in thousands):

 

 

 

Location of Gains

 

Three Months Ended March 31,

 

 

 

(Losses) in Net Income

 

2021

 

 

2020

 

Revenues

 

 

 

$

457,886

 

 

$

411,166

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized in AOCI:

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

 

 

$

208

 

 

$

(311

)

   Gains (losses) reclassified from AOCI:

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

Revenues

 

$

(757

)

 

$

926

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized from foreign

      currency contracts

 

Other income (expense), net

 

$

35

 

 

$

(246

)

 

 

v3.21.1
Investments Held in Rabbi Trust
3 Months Ended
Mar. 31, 2021
Investments Debt And Equity Securities [Abstract]  
Investments Held in Rabbi Trust

Note 7.  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 Condensed Consolidated Balance Sheets, at fair value, consist of the following (in thousands):

 

 

March 31, 2021

 

 

December 31, 2020

 

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

Mutual funds

$

11,088

 

 

$

18,008

 

 

$

10,332

 

 

$

16,780

 

 

The mutual funds held in rabbi trust were 75% equity-based and 25% debt-based as of March 31, 2021. Net investment gains (losses) included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Net realized gains (losses) from sale of trading

   securities

$

425

 

 

$

50

 

Dividend and interest income

 

32

 

 

 

33

 

Net unrealized holding gains (losses)

 

68

 

 

 

(2,140

)

 

$

525

 

 

$

(2,057

)

 

v3.21.1
Accumulated Other Comprehensive Income (Loss)
3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

Note 8. 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, 2020

$

(52,749

)

 

$

1,046

 

 

$

2,290

 

 

$

2,324

 

 

$

88

 

 

$

(47,001

)

Pre-tax amount

 

12,461

 

 

 

 

 

 

(839

)

 

 

(1,914

)

 

 

 

 

 

9,708

 

Tax (provision) benefit

 

 

 

 

 

 

 

(253

)

 

 

182

 

 

 

 

 

 

(71

)

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

(3,418

)

 

 

(129

)

 

 

(88

)

 

 

(3,635

)

Foreign currency translation

 

(162

)

 

 

 

 

 

29

 

 

 

133

 

 

 

 

 

 

 

Balance at December 31, 2020

 

(40,450

)

 

 

1,046

 

 

 

(2,191

)

 

 

596

 

 

 

 

 

 

(40,999

)

Pre-tax amount

 

(4,457

)

 

 

 

 

 

208

 

 

 

 

 

 

 

 

 

(4,249

)

Tax (provision) benefit

 

 

 

 

 

 

 

15

 

 

 

 

 

 

 

 

 

15

 

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

756

 

 

 

(1

)

 

 

 

 

 

755

 

Foreign currency translation

 

(6

)

 

 

 

 

 

12

 

 

 

(6

)

 

 

 

 

 

 

Balance at March 31, 2021

$

(44,913

)

 

$

1,046

 

 

$

(1,200

)

 

$

589

 

 

$

 

 

$

(44,478

)

 

 

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

 

 

Three Months Ended March 31,

 

 

Statements of

Operations

 

2021

 

 

2020

 

 

Location

Gain (loss) on cash flow hedging

   instruments: (1)

 

 

 

 

 

 

 

 

 

Pre-tax amount

$

(757

)

 

$

926

 

 

Revenues

Tax (provision) benefit

 

1

 

 

 

(28

)

 

Income taxes

Reclassification to net income

 

(756

)

 

 

898

 

 

 

Actuarial gain (loss) related to

   pension liability: (2)

 

 

 

 

 

 

 

 

 

Pre-tax amount

 

1

 

 

 

23

 

 

Other income (expense), net

Tax (provision) benefit

 

 

 

 

3

 

 

Income taxes

Reclassification to net income

 

1

 

 

 

26

 

 

 

Gain (loss) on postretirement

   obligation: (2)(3)

 

 

 

 

 

 

 

 

 

Reclassification to net income

 

 

 

 

22

 

 

Other income (expense), net

 

$

(755

)

 

$

946

 

 

 

 

(1) See Note 6, Financial Derivatives, for further information.

(2) See Note 12, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

(3) No related tax (provision) benefit.

The Company has accrued income taxes on earnings which it plans to repatriate to the U.S. Any remaining earnings as well as other 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. See Note 9, Income Taxes, for further information.

v3.21.1
Income Taxes
3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

Note 9. Income Taxes

The Company’s effective tax rates were as follows:

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Effective tax rate

 

19.1

%

 

 

27.3

%

The decrease in the effective tax rate for the three months ended March 31, 2021 as compared to 2020 was primarily due to $1.2 million in discrete tax benefits relating to Philippines tax law changes and stock compensation recognized during the three months ended March 31, 2021. The decrease was also affected by shifts in earnings among the various jurisdictions in which the Company operates. Several additional factors, none of which were individually material, also impacted the rate. The difference between the Company’s effective tax rate as compared to the U.S. statutory federal tax rate of 21.0% was primarily due to the tax impact of permanent differences, state income and foreign withholding taxes, partially offset by the recognition of net tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions and tax credits.

 

The Company provides U.S. income taxes on the earnings of foreign subsidiaries unless they are exempted from taxation. No additional income taxes have been provided for any indefinitely reinvested earnings or outside basis differences. 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-jurisdictional tax environment in which the Company operates.

The Company is currently under audit in several tax jurisdictions. The Company believes it has adequate reserves related to all matters pertaining to these audits. Should the Company experience unfavorable outcomes from these audits, such outcomes could have a significant impact on its financial condition, results of operations and cash flows.

v3.21.1
Earnings Per Share
3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Earnings Per Share

Note 10. 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 were as follows (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Basic:

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

39,641

 

 

 

41,132

 

Diluted:

 

 

 

 

 

 

 

Dilutive effect of stock appreciation rights, restricted

   stock, restricted stock units and shares held in

   rabbi trust

 

315

 

 

 

202

 

Total weighted average diluted shares outstanding

 

39,956

 

 

 

41,334

 

Anti-dilutive shares excluded from the diluted earnings

   per share calculation

 

25

 

 

 

12

 

 

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 8.3 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 2011 Share Repurchase Program were as follows (none in 2021) (in thousands, except per share amounts):

 

 

 

Total Number of

 

 

 

 

 

Total Cost of

 

 

 

Shares

 

 

Range of Prices Paid Per Share

 

 

Shares

 

 

 

Repurchased

 

 

Low

 

 

High

 

 

Repurchased

 

Three Months Ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

 

860

 

 

$

23.33

 

 

$

31.91

 

 

$

22,909

 

 

v3.21.1
Commitments and Loss Contingencies
3 Months Ended
Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Loss Contingencies

Note 11. Commitments and Loss Contingencies

Purchase Commitments

 

The Company enters into various purchase commitment 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.    

 

Loss Contingencies

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 $1.9 million, net of federal benefit, as of March 31, 2021.

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

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.  

v3.21.1
Defined Benefit Pension Plan and Postretirement Benefits
3 Months Ended
Mar. 31, 2021
Compensation And Retirement Disclosure [Abstract]  
Defined Benefit Pension Plan and Postretirement Benefits

Note 12. Defined Benefit Pension Plan and Postretirement Benefits

Defined Benefit Pension Plans

The following table provides information about the net periodic benefit cost for the Company’s pension plans (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Service cost (1)

$

181

 

 

$

105

 

Interest cost (2)

 

61

 

 

 

51

 

Recognized actuarial (gains) (2)

 

(1

)

 

 

(23

)

 

$

241

 

 

$

133

 

 

(1) Included in "Direct salaries and related costs" and “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

(2) Included in "Other income (expense), net" in the accompanying Condensed Consolidated Statements of Operations.

Employee Retirement Savings Plans

The Company maintains a 401(k) plan covering defined employees who meet established eligibility requirements. The Company’s contributions included in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

401(k) plan contributions

$

851

 

 

$

780

 

 

v3.21.1
Stock-Based Compensation
3 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

Note 13. Stock-Based Compensation

The following table summarizes the stock-based compensation expense (primarily in the Americas) and income tax benefits related to the stock-based compensation, both plan and non-plan related (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Stock-based compensation (expense) (1)

$

(4,751

)

 

$

(1,860

)

Income tax benefit (2)

 

1,140

 

 

 

446

 

 

(1) Included in "General and administrative" costs in the accompanying Condensed Consolidated Statements of Operations.

(2) Included in "Income taxes" in the accompanying Condensed Consolidated Statements of Operations.

During the three months ended March 31, 2021, the Company granted 0.3 million performance-based restricted shares/restricted stock units and 0.1 million service-based restricted shares/restricted stock units under the Company’s 2019 Plan, all at a weighted average grant-date fair value of $44.79 per share.

v3.21.1
Segments and Geographic Information
3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segments and Geographic Information

Note 14. 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 experience management solutions and services (with an emphasis on inbound technical support, digital support and demand generation, and customer

service) and technical staffing and (2) EMEA, which includes Europe, the Middle East and Africa, and provides outsourced customer experience management solutions and services (with an emphasis on technical support and customer service) and fulfillment services. 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 experience management needs.  

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

 

 

Americas

 

 

EMEA

 

 

Other (1)

 

 

Consolidated

 

Three Months Ended March 31, 2021:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

363,719

 

 

$

94,167

 

 

$

 

 

$

457,886

 

Percentage of revenues

 

79.4

%

 

 

20.6

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

10,221

 

 

$

2,156

 

 

$

738

 

 

$

13,115

 

Amortization of intangibles

$

2,096

 

 

$

891

 

 

$

 

 

$

2,987

 

Income (loss) from operations

$

44,872

 

 

$

6,668

 

 

$

(20,010

)

 

$

31,530

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(647

)

 

 

(647

)

Income taxes

 

 

 

 

 

 

 

 

 

(5,905

)

 

 

(5,905

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

$

24,978

 

Three Months Ended March 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

332,926

 

 

$

78,233

 

 

$

7

 

 

$

411,166

 

Percentage of revenues

 

81.0

%

 

 

19.0

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

10,033

 

 

$

1,705

 

 

$

723

 

 

$

12,461

 

Amortization of intangibles

$

3,286

 

 

$

833

 

 

$

 

 

$

4,119

 

Income (loss) from operations

$

35,779

 

 

$

3,180

 

 

$

(14,565

)

 

$

24,394

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(5,250

)

 

 

(5,250

)

Income taxes

 

 

 

 

 

 

 

 

 

(5,226

)

 

 

(5,226

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

13,918

 

 

(1) Other items (including corporate and other costs, other income and expense, and income taxes) are included for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the periods shown.  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.

The following table represents a disaggregation of revenue from contracts with customers by delivery location and by the reportable segment (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Americas:

 

 

 

 

 

 

 

United States

$

170,004

 

 

$

157,666

 

The Philippines

 

67,994

 

 

 

64,439

 

Costa Rica

 

37,526

 

 

 

34,881

 

Canada

 

27,987

 

 

 

25,241

 

El Salvador

 

17,996

 

 

 

18,720

 

Other

 

42,212

 

 

 

31,979

 

Total Americas

 

363,719

 

 

 

332,926

 

EMEA:

 

 

 

 

 

 

 

Germany

 

29,023

 

 

 

24,651

 

Other

 

65,144

 

 

 

53,582

 

Total EMEA

 

94,167

 

 

 

78,233

 

Total Other

 

 

 

 

7

 

 

$

457,886

 

 

$

411,166

 

 

 

v3.21.1
Other Income (Expense)
3 Months Ended
Mar. 31, 2021
Other Income And Expenses [Abstract]  
Other Income (Expense)

Note 15. Other Income (Expense)

 

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

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Foreign currency transaction gains (losses)

$

(185

)

 

$

(1,606

)

Gains (losses) on derivative instruments not designated

   as hedges

 

35

 

 

 

(246

)

Net investment gains (losses) on investments held in

   rabbi trust

 

525

 

 

 

(2,057

)

Other miscellaneous income (expense)

 

(697

)

 

 

(884

)

 

$

(322

)

 

$

(4,793

)

 

v3.21.1
Related Party Transactions
3 Months Ended
Mar. 31, 2021
Related Party Transactions [Abstract]  
Related Party Transactions

Note 16. Related Party Transactions

In January 2008, the Company entered into a lease for a customer experience management 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. Upon giving notice in September 2020, the Company paid a lease termination penalty of $0.1 million and the Company vacated the space as of March 31, 2021.  The Company paid $0.1 million to the landlord during both the three months ended March 31, 2021 and 2020, under the terms of the lease.

v3.21.1
Overview and Basis of Presentation (Policies)
3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Business

Business Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) is a leading full lifecycle provider of global customer experience management services, multichannel demand generation and digital transformation. The Company provides differentiated full lifecycle customer experience management solutions and services primarily to Global 2000 companies and their end customers principally in the financial services, technology, communications, transportation & leisure and healthcare industries. The Company’s differentiated full lifecycle services platform effectively engages customers at every touchpoint within the customer journey, including digital media and acquisition, sales expertise, customer service, technical support and retention, many of which can be optimized through a suite of digital transformation capabilities under its SYKES Digital Services (“SDS”) group, which spans robotic process automation (“RPA”), self-service, insight analytics and digital learning.  In addition to digital transformation, the Company also provides artificial intelligence (“AI”) solutions that can be embedded and leveraged across its lifecycle offerings. Utilizing SYKES’ integrated onshore/offshore global delivery model, the Company provides its services through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. The Company 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 RPA provider Symphony Ventures Ltd (“Symphony”) coupled with its investment in 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.

 

Coronavirus

On March 11, 2020, the World Health Organization characterized the novel coronavirus (“COVID-19”) a pandemic. The global nature, rapid spread and continually evolving response by governments throughout the world to combat the spread has had a negative impact on the global economy. Certain of the Company’s customer experience management centers have been impacted by local government actions restricting facility access or are operating at lower capacity utilization levels to achieve social distancing. The Company is committed to the health and safety of its workforce and ensuring business continuity for the brands it serves. In response, the Company has shifted as many employees as possible to a work-at-home model. As of the middle of April 2021, approximately 70% of agents assigned to the Company’s brick-and-mortar facilities have temporarily transitioned to a work-at-home model, 25% are working in centers and 5% of the Company’s agents are idle primarily due to the lack of technical infrastructure to work from home. The Company’s operations in the Philippines, El Salvador and Mexico have been most impacted by the governmental restrictions.

The Company continues to closely monitor the prevalence of COVID-19 and the vaccination rates in the communities where its centers are located as well as guidance from public health authorities, federal and local agencies and municipalities. The Company will work with employees and clients to transition agents back to its centers based on that guidance, but risk further disruption to the business as a result of COVID-19 and government-imposed restrictions. Over time, the Company anticipates a permanent transition to a work-at-home or hybrid model for a portion of its workforce.

Exit of Leased Space

The Company continues to reevaluate its real estate footprint in connection with the transition of a portion of its workforce to a permanent remote working environment in both the Americas and EMEA. Since April 2020, the Company has decided to terminate, sublease or abandon leases prior to the end of their lease terms at certain of its sites as approximately 3,500 seats transitioned from brick and mortar to at home agents. As such, the Company recorded cumulative impairments of right-of-use (“ROU”) assets of $13.4 million and impairments of property and equipment of $7.2 million related to these actions since the initiation of its reevaluation in April 2020, of which $0.7

million of ROU assets and $0.1 million of property and equipment impairments were recorded during the three months ended March 31, 2021. See Note 4, Fair Value, in the accompanying “Notes to Condensed Consolidated Financial Statements” for further information.

 

Taylor Media Corp. Acquisition

On December 31, 2020, through its wholly-owned subsidiary, Clear Link Technologies, LLC, the Company completed the acquisition of Taylor Media Corp. (“TMC”), a personal finance digital media company and owner of The Penny Hoarder. Of the total initial purchase price of $104.9 million, $87.2 million was paid upon closing using $63.0 million of additional borrowings under our credit agreement as well as cash on hand. Of the remaining $17.7 million of the purchase price, $0.2 million was used to repay outstanding debt and $17.5 million of the purchase price was deferred and is payable on December 31, 2027, the seventh anniversary of the closing. In the event TMC’s previous owner remains employed by the Company or one of its subsidiaries on December 31, 2022, the second anniversary of the closing, the deferred payment will be accelerated and due at that time. The deferred purchase price was included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020.

 

The Company accounted for the TMC acquisition in accordance with ASC 805, Business Combinations (“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 this analysis by June 30, 2021 and any resulting adjustments will be recorded in accordance with ASC 805. The initial purchase price allocation resulted in $2.2 million of cash, $6.7 million of accounts receivable, $87.9 million of intangible assets, primarily domain names, content library and customer relationships, $4.2 million of other assets, $9.0 million of goodwill and $5.1 million of liabilities.

 

The Company has reflected TMC’s assets and liabilities in its consolidated balance sheet as of December 31, 2020 and the results of TMC’s operations have been reflected in its consolidated financial statements in the Americas segment since January 1, 2021.

 

Basis of Presentation

Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2021. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021.

Principles of Consolidation

 

Principles of Consolidation The condensed 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 condensed consolidated financial statements in conformity with 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.

 

Due to the novel coronavirus (“COVID-19”) pandemic, there has been uncertainty and disruption in the global economy and financial markets. Other than where noted, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date and time of issuance of the condensed consolidated financial statements. These estimates may change, as new events occur, and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.

Subsequent Events

 

Subsequent Events Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. There were no material subsequent events that required recognition or disclosure in the accompanying condensed 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. 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 Condensed Consolidated Balance Sheets that sum to the amounts reported in the Condensed Consolidated Statements of Cash Flows (in thousands):

 

 

March 31, 2021

 

 

December 31, 2020

 

 

March 31, 2020

 

 

December 31, 2019

 

Cash and cash equivalents

$

112,763

 

 

$

103,077

 

 

$

118,422

 

 

$

127,246

 

Restricted cash included in "Other current assets"

 

288

 

 

 

355

 

 

 

438

 

 

 

568

 

Restricted cash included in "Deferred charges and

   other assets"

 

967

 

 

 

964

 

 

 

1,223

 

 

 

1,371

 

 

$

114,018

 

 

$

104,396

 

 

$

120,083

 

 

$

129,185

 

Allowance for Doubtful Accounts

 

Allowance for Doubtful Accounts — The Company recorded a $0.2 million and $0.6 million increase to the allowance for credit losses related to its short-term trade receivables primarily as a result of deterioration in certain clients’ credit ratings reflecting current and expected economic conditions during the three months ended March 31, 2021 and 2020, respectively, and wrote off $0.1 million and $0.3 million of the allowance for credit losses related to certain short-term trade receivables deemed to be uncollectible during the three months ended March 31, 2021 and 2020, respectively. The Company recorded a $0.1 million increase to the allowance for credit losses related to its long-term trade receivables during the three months ended March 31, 2021 (none in 2020).

Customer-Acquisition Advertising Costs

 

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

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Customer-acquisition advertising costs

 

19,565

 

 

 

10,182

 

 

New Accounting Standards Not Yet Adopted

New Accounting Standards Not Yet Adopted

 

Reference Rate Reform

 

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Compensation – Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides companies with optional guidance, including expedients and exceptions for applying generally accepted accounting principles to contracts and other transactions affected by reference rate reform, such as the London Interbank Offered Rate (“LIBOR”).  These amendments are effective for all entities as of March 12, 2020 and an entity may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact of the transition from LIBOR to alternative reference interest rates but does not expect a material impact on its financial position, results of operations or cash flows.

New Accounting Standards Recently Adopted

 

New Accounting Standards Recently Adopted

 

Income Taxes

 

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes (“ASU 2019-12”). These amendments simplify the accounting for income taxes by eliminating certain exceptions and also clarifying and amending certain aspects of existing guidance.  These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020.  Most of the amendments are required to be applied on a prospective basis, while certain amendments must be applied on a

retrospective or modified retrospective basis.  Early adoption was permitted, including adoption in any interim period for which financial statements had not yet been issued. The Company’s adoption of ASU 2019-12 on January 1, 2021 did not have a material impact on its financial position, results of operations, cash flows or disclosures.

 

Significant Accounting Policies

 

There have been no new or material changes to the significant accounting policies disclosed in Note 1, Overview and Summary of Significant Accounting Policies, in the “Notes to the Consolidated Financial Statements” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Revenue from Contracts with Customers

Revenues from Contracts with Customers

Revenues for customer experience management solutions and services are recognized over time using output methods such as a per minute, per hour, per call, per transaction or per time and materials basis. RPA services revenues are primarily recognized over time using output methods such as per time and materials basis. Revenues from fulfillment services are recognized upon shipment to the customer and satisfaction of all obligations. Revenues from enterprise support services are recognized over time using output methods such as number of positions filled.

The Company expects to recognize the majority of its deferred revenue as of March 31, 2021 over the next 180 days. Revenues of $2.8 million and $2.7 million were recognized during the three months ended March 31, 2021 and 2020, respectively, from amounts included in deferred revenue at December 31, 2020 and 2019, respectively.

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.

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

Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) defines fair value and establishes a framework for measuring fair value. ASC 820 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.  Additionally, ASC 820 requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for how 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.

Financial Instruments

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 exchange 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 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, if applicable.

 

Cash, Short-Term and Other Investments and Accounts Payable The carrying values for cash, short-term and other investments and accounts payable approximate their fair values.

 

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.

 

Foreign Currency Contracts The Company enters into foreign currency forward contracts and options over the counter and values such contracts, including premiums paid on options, at fair value 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.

 

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 7, Investments Held in Rabbi Trust.

 

Foreign Currency and Derivative Instruments

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 foreign currency 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.

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.

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.

v3.21.1
Overview and Basis of Presentation (Tables)
3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
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 Condensed Consolidated Balance Sheets that sum to the amounts reported in the Condensed Consolidated Statements of Cash Flows (in thousands):

 

 

March 31, 2021

 

 

December 31, 2020

 

 

March 31, 2020

 

 

December 31, 2019

 

Cash and cash equivalents

$

112,763

 

 

$

103,077

 

 

$

118,422

 

 

$

127,246

 

Restricted cash included in "Other current assets"

 

288

 

 

 

355

 

 

 

438

 

 

 

568

 

Restricted cash included in "Deferred charges and

   other assets"

 

967

 

 

 

964

 

 

 

1,223

 

 

 

1,371

 

 

$

114,018

 

 

$

104,396

 

 

$

120,083

 

 

$

129,185

 

Schedule of Customer-Acquisition Advertising Costs Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Customer-acquisition advertising costs

 

19,565

 

 

 

10,182

 

 

v3.21.1
Revenues (Tables)
3 Months Ended
Mar. 31, 2021
Revenue From Contract With Customer [Abstract]  
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 for the periods indicated (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

 

Amount

 

 

% of Revenue

 

 

Amount

 

 

% of Revenue

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer experience management solutions and services

$

363,453

 

 

79.4%

 

 

$

332,614

 

 

80.9%

 

Other revenues

 

266

 

 

0.0%

 

 

 

312

 

 

0.1%

 

Total Americas

 

363,719

 

 

79.4%

 

 

 

332,926

 

 

81.0%

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer experience management solutions and services

 

89,336

 

 

19.5%

 

 

 

72,633

 

 

17.7%

 

Other revenues

 

4,831

 

 

1.1%

 

 

 

5,600

 

 

1.3%

 

Total EMEA

 

94,167

 

 

20.6%

 

 

 

78,233

 

 

19.0%

 

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

0.0%

 

 

 

7

 

 

0.0%

 

Total Other

 

 

 

0.0%

 

 

 

7

 

 

0.0%

 

 

$

457,886

 

 

100.0%

 

 

$

411,166

 

 

100.0%

 

Receivables, Net

The Company’s noncurrent trade accounts receivable result from contracts with customers that include renewal provisions and contracts with customers under multi-year arrangements. The Company’s trade accounts receivable, net, consisted of the following (in thousands):

 

 

March 31, 2021

 

 

December 31, 2020

 

Trade accounts receivable, net, current (1)

$

393,157

 

 

$

398,112

 

Trade accounts receivable, net, noncurrent (2)

 

29,833

 

 

 

30,021

 

 

$

422,990

 

 

$

428,133

 

 

(1) Included in “Receivables, net” in the accompanying Condensed Consolidated Balance Sheets.

(2) Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.  

Components of Deferred Revenue and Customer Liabilities

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

 

 

March 31, 2021

 

 

December 31, 2020

 

Deferred revenue

$

2,772

 

 

$

2,916

 

Customer arrangements with termination rights

 

15,326

 

 

 

15,771

 

Estimated refund liabilities

 

7,646

 

 

 

6,115

 

 

$

25,744

 

 

$

24,802

 

 

v3.21.1
Leases (Tables)
3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Schedule of Lease

Additional supplemental information related to leases was as follows:

 

March 31, 2021

 

 

December 31, 2020

 

Weighted average remaining lease term of operating leases

4.1 years

 

 

4.3 years

 

Weighted average discount rate of operating leases

 

3.4

%

 

 

3.4

%

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of March 31, 2021 were as follows (in thousands):

 

Amount

 

2021 (remainder of the year)

$

45,075

 

2022

 

48,783

 

2023

 

32,335

 

2024

 

22,998

 

2025

 

14,755

 

2026 and thereafter

 

18,753

 

Total future lease payments

 

182,699

 

Less: Imputed interest

 

13,160

 

Present value of future lease payments

 

169,539

 

Less: Operating lease liabilities

 

53,043

 

Long-term operating lease liabilities

$

116,496

 

v3.21.1
Fair Value (Tables)
3 Months Ended
Mar. 31, 2021
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 consisted 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

 

 

March 31, 2021

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

905

 

 

$

 

 

$

905

 

 

$

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

13,558

 

 

 

13,558

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

4,450

 

 

 

4,450

 

 

 

 

 

 

 

 

$

18,913

 

 

$

18,008

 

 

$

905

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

1,411

 

 

$

 

 

$

1,411

 

 

$

 

 

$

1,411

 

 

$

 

 

$

1,411

 

 

$

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

December 31, 2020

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

337

 

 

$

 

 

$

337

 

 

$

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

11,263

 

 

 

11,263

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

5,517

 

 

 

5,517

 

 

 

 

 

 

 

 

$

17,117

 

 

$

16,780

 

 

$

337

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

2,478

 

 

$

 

 

$

2,478

 

 

$

 

 

$

2,478

 

 

$

 

 

$

2,478

 

 

$

 

 

(1) See Note 6, Financial Derivatives, for the classification in the accompanying Condensed Consolidated Balance Sheets.  

(2) Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets.  See Note 7, Investments Held in Rabbi Trust.

Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets

The following table summarizes the total impairment losses in the accompanying Condensed Consolidated Statements of Operations related to nonrecurring fair value measurements of certain assets (none in 2020) (in thousands):

 

 

Three Months Ended

March 31, 2021

 

Americas:

 

 

 

Property and equipment, net

$

56

 

Operating lease right-of-use assets

 

301

 

 

 

357

 

EMEA:

 

 

 

Property and equipment, net

 

77

 

Operating lease right-of-use assets

 

398

 

 

 

475

 

Other:

 

 

 

Property and equipment, net

 

318

 

 

 

 

 

 

$

1,150

 

 

v3.21.1
Goodwill and Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Company's Purchased Intangible Assets

The following table presents the Company’s purchased intangible assets as of March 31, 2021 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

195,257

 

 

$

(136,132

)

 

$

59,125

 

 

 

10

 

Trade names and trademarks

 

7,949

 

 

 

(3,485

)

 

 

4,464

 

 

 

8

 

Non-compete agreements

 

1,053

 

 

 

(794

)

 

 

259

 

 

 

3

 

Content library

 

4,829

 

 

 

(744

)

 

 

4,085

 

 

 

5

 

Proprietary software

 

870

 

 

 

(870

)

 

 

 

 

 

5

 

 

 

209,958

 

 

 

(142,025

)

 

 

67,933

 

 

 

9

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

163,225

 

 

 

 

 

 

163,225

 

 

N/A

 

 

$

373,183

 

 

$

(142,025

)

 

$

231,158

 

 

 

 

 

 

The following table presents the Company’s purchased intangible assets as of December 31, 2020 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

195,116

 

 

$

(133,689

)

 

$

61,427

 

 

 

10

 

Trade names and trademarks

 

7,918

 

 

 

(3,225

)

 

 

4,693

 

 

 

8

 

Non-compete agreements

 

1,100

 

 

 

(712

)

 

 

388

 

 

 

3

 

Content library

 

4,851

 

 

 

(551

)

 

 

4,300

 

 

 

5

 

Proprietary software

 

870

 

 

 

(835

)

 

 

35

 

 

 

5

 

 

 

209,855

 

 

 

(139,012

)

 

 

70,843

 

 

 

9

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

163,132

 

 

 

 

 

 

163,132

 

 

N/A

 

 

$

372,987

 

 

$

(139,012

)

 

$

233,975

 

 

 

 

 

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 March 31, 2021 is as follows (in thousands):

 

 

Amount

 

2021 (remainder of the year)

$

8,749

 

2022

 

10,414

 

2023

 

8,309

 

2024

 

8,074

 

2025

 

7,961

 

2026

 

6,980

 

2027 and thereafter

 

17,446

 

 

Changes in Goodwill

Changes in goodwill for the three months ended March 31, 2021 consisted of the following (in thousands):

 

 

January 1, 2021

 

 

Acquisition-

Related (1)

 

 

Impairment

 

 

Effect of

Foreign

Currency

 

 

March 31, 2021

 

Americas

$

269,472

 

 

$

176

 

 

$

 

 

$

151

 

 

$

269,799

 

EMEA

 

29,937

 

 

 

 

 

 

 

 

 

(440

)

 

 

29,497

 

 

$

299,409

 

 

$

176

 

 

$

 

 

$

(289

)

 

$

299,296

 

 

 

Changes in goodwill for the year ended December 31, 2020 consisted of the following (in thousands):

 

 

January 1, 2020

 

 

Acquisition-

Related (1)

 

 

Impairment (2)

 

 

Effect of

Foreign

Currency

 

 

December 31, 2020

 

Americas

$

259,953

 

 

$

8,851

 

 

$

 

 

$

668

 

 

$

269,472

 

EMEA

 

51,294

 

 

 

 

 

 

(21,792

)

 

 

435

 

 

 

29,937

 

 

$

311,247

 

 

$

8,851

 

 

$

(21,792

)

 

$

1,103

 

 

$

299,409

 

 

(1) The three months ended March 31, 2021 includes the impact of adjustments to acquired goodwill upon refinements of the purchase price allocation of TMC’s assets acquired and liabilities assumed.  The year ended December 31, 2020 includes the goodwill recorded related to the TMC acquisition.

(2) The year ended December 31, 2020 includes the impairment of a portion of the Symphony reporting unit’s goodwill.

 

v3.21.1
Financial Derivatives (Tables)
3 Months Ended
Mar. 31, 2021
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 Condensed Consolidated Balance Sheets were as follows (in thousands):

 

 

March 31, 2021

 

 

December 31, 2020

 

Deferred gains (losses) in AOCI

$

(1,212

)

 

$

(2,188

)

Tax on deferred gains (losses) in AOCI

 

12

 

 

 

(3

)

Deferred gains (losses) in AOCI, net of taxes

$

(1,200

)

 

$

(2,191

)

Deferred gains (losses) expected to be reclassified to "Revenues"

   from AOCI during the next twelve months

$

(1,031

)

 

 

 

 

Outstanding Foreign Currency Forward Contracts and Options

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

 

 

March 31, 2021

 

December 31, 2020

 

Contract Type

Notional

Amount

in USD

 

 

Settle

Through

Date

 

Notional

Amount

in USD

 

 

Settle

Through

Date

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Options:

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

$

42,000

 

 

December 2021

 

$

12,000

 

 

June 2021

 

Forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Costa Rican Colones

 

30,000

 

 

August 2022

 

 

36,000

 

 

December 2021

 

Euros/Hungarian Forints

 

1,689

 

 

December 2021

 

 

 

 

 

 

Euros/Romanian Leis

 

11,000

 

 

December 2021

 

 

 

 

 

 

Non-designated hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Forwards

 

12,481

 

 

November 2021

 

 

12,439

 

 

November 2021

 

Derivative Instruments Fair Value

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

 

 

 

 

 

Derivative Assets

 

 

 

Balance Sheet Location

 

March 31, 2021

 

 

December 31, 2020

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

$

511

 

 

$

154

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

 

394

 

 

 

183

 

Total derivative assets

 

 

 

$

905

 

 

$

337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liabilities

 

 

 

Balance Sheet Location

 

March 31, 2021

 

 

December 31, 2020

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

$

1,155

 

 

$

2,253

 

Foreign currency contracts

 

Other long-term liabilities

 

 

181

 

 

 

 

 

 

 

 

 

1,336

 

 

 

2,253

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

 

75

 

 

 

225

 

Total derivative liabilities

 

 

 

$

1,411

 

 

$

2,478

 

 

Effect of the Company's Derivative Instruments

The following table presents the effect of the Company’s derivative instruments included in the accompanying condensed consolidated financial statements (in thousands):

 

 

 

Location of Gains

 

Three Months Ended March 31,

 

 

 

(Losses) in Net Income

 

2021

 

 

2020

 

Revenues

 

 

 

$

457,886

 

 

$

411,166

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized in AOCI:

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

 

 

$

208

 

 

$

(311

)

   Gains (losses) reclassified from AOCI:

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

Revenues

 

$

(757

)

 

$

926

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized from foreign

      currency contracts

 

Other income (expense), net

 

$

35

 

 

$

(246

)

 

 

v3.21.1
Investments Held in Rabbi Trust (Tables)
3 Months Ended
Mar. 31, 2021
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 Condensed Consolidated Balance Sheets, at fair value, consist of the following (in thousands):

 

 

March 31, 2021

 

 

December 31, 2020

 

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

Mutual funds

$

11,088

 

 

$

18,008

 

 

$

10,332

 

 

$

16,780

 

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

The mutual funds held in rabbi trust were 75% equity-based and 25% debt-based as of March 31, 2021. Net investment gains (losses) included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Net realized gains (losses) from sale of trading

   securities

$

425

 

 

$

50

 

Dividend and interest income

 

32

 

 

 

33

 

Net unrealized holding gains (losses)

 

68

 

 

 

(2,140

)

 

$

525

 

 

$

(2,057

)

 

v3.21.1
Accumulated Other Comprehensive Income (Loss) (Tables)
3 Months Ended
Mar. 31, 2021
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, 2020

$

(52,749

)

 

$

1,046

 

 

$

2,290

 

 

$

2,324

 

 

$

88

 

 

$

(47,001

)

Pre-tax amount

 

12,461

 

 

 

 

 

 

(839

)

 

 

(1,914

)

 

 

 

 

 

9,708

 

Tax (provision) benefit

 

 

 

 

 

 

 

(253

)

 

 

182

 

 

 

 

 

 

(71

)

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

(3,418

)

 

 

(129

)

 

 

(88

)

 

 

(3,635

)

Foreign currency translation

 

(162

)

 

 

 

 

 

29

 

 

 

133

 

 

 

 

 

 

 

Balance at December 31, 2020

 

(40,450

)

 

 

1,046

 

 

 

(2,191

)

 

 

596

 

 

 

 

 

 

(40,999

)

Pre-tax amount

 

(4,457

)

 

 

 

 

 

208

 

 

 

 

 

 

 

 

 

(4,249

)

Tax (provision) benefit

 

 

 

 

 

 

 

15

 

 

 

 

 

 

 

 

 

15

 

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

756

 

 

 

(1

)

 

 

 

 

 

755

 

Foreign currency translation

 

(6

)

 

 

 

 

 

12

 

 

 

(6

)

 

 

 

 

 

 

Balance at March 31, 2021

$

(44,913

)

 

$

1,046

 

 

$

(1,200

)

 

$

589

 

 

$

 

 

$

(44,478

)

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 Condensed Consolidated Statements of Operations (in thousands):

 

 

Three Months Ended March 31,

 

 

Statements of

Operations

 

2021

 

 

2020

 

 

Location

Gain (loss) on cash flow hedging

   instruments: (1)

 

 

 

 

 

 

 

 

 

Pre-tax amount

$

(757

)

 

$

926

 

 

Revenues

Tax (provision) benefit

 

1

 

 

 

(28

)

 

Income taxes

Reclassification to net income

 

(756

)

 

 

898

 

 

 

Actuarial gain (loss) related to

   pension liability: (2)

 

 

 

 

 

 

 

 

 

Pre-tax amount

 

1

 

 

 

23

 

 

Other income (expense), net

Tax (provision) benefit

 

 

 

 

3

 

 

Income taxes

Reclassification to net income

 

1

 

 

 

26

 

 

 

Gain (loss) on postretirement

   obligation: (2)(3)

 

 

 

 

 

 

 

 

 

Reclassification to net income

 

 

 

 

22

 

 

Other income (expense), net

 

$

(755

)

 

$

946

 

 

 

 

(1) See Note 6, Financial Derivatives, for further information.

(2) See Note 12, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

(3) No related tax (provision) benefit.

v3.21.1
Income Taxes (Tables)
3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Summary of Effective Tax Rates

The Company’s effective tax rates were as follows:

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Effective tax rate

 

19.1

%

 

 

27.3

%

v3.21.1
Earnings Per Share (Tables)
3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Number of Shares Used in Earnings Per Share Computation

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

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Basic:

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

39,641

 

 

 

41,132

 

Diluted:

 

 

 

 

 

 

 

Dilutive effect of stock appreciation rights, restricted

   stock, restricted stock units and shares held in

   rabbi trust

 

315

 

 

 

202

 

Total weighted average diluted shares outstanding

 

39,956

 

 

 

41,334

 

Anti-dilutive shares excluded from the diluted earnings

   per share calculation

 

25

 

 

 

12

 

Shares Repurchased

The shares repurchased under the Company’s 2011 Share Repurchase Program were as follows (none in 2021) (in thousands, except per share amounts):

 

 

 

Total Number of

 

 

 

 

 

Total Cost of

 

 

 

Shares

 

 

Range of Prices Paid Per Share

 

 

Shares

 

 

 

Repurchased

 

 

Low

 

 

High

 

 

Repurchased

 

Three Months Ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

 

860

 

 

$

23.33

 

 

$

31.91

 

 

$

22,909

 

v3.21.1
Defined Benefit Pension Plan and Postretirement Benefits (Tables)
3 Months Ended
Mar. 31, 2021
Compensation And Retirement Disclosure [Abstract]  
Net Periodic Benefit Cost and Other Accumulated Comprehensive Income for Pension Plans

The following table provides information about the net periodic benefit cost for the Company’s pension plans (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Service cost (1)

$

181

 

 

$

105

 

Interest cost (2)

 

61

 

 

 

51

 

Recognized actuarial (gains) (2)

 

(1

)

 

 

(23

)

 

$

241

 

 

$

133

 

(1) Included in "Direct salaries and related costs" and “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

(2) Included in "Other income (expense), net" in the accompanying Condensed Consolidated Statements of Operations.

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

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

401(k) plan contributions

$

851

 

 

$

780

 

 

v3.21.1
Stock-Based Compensation (Tables)
3 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company Both Plan and Non-Plan The following table summarizes the stock-based compensation expense (primarily in the Americas) and income tax benefits related to the stock-based compensation, both plan and non-plan related (in thousands):

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Stock-based compensation (expense) (1)

$

(4,751

)

 

$

(1,860

)

Income tax benefit (2)

 

1,140

 

 

 

446

 

 

(1) Included in "General and administrative" costs in the accompanying Condensed Consolidated Statements of Operations.

(2) Included in "Income taxes" in the accompanying Condensed Consolidated Statements of Operations.

v3.21.1
Segments and Geographic Information (Tables)
3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Company's Reportable Segments

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

 

 

Americas

 

 

EMEA

 

 

Other (1)

 

 

Consolidated

 

Three Months Ended March 31, 2021:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

363,719

 

 

$

94,167

 

 

$

 

 

$

457,886

 

Percentage of revenues

 

79.4

%

 

 

20.6

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

10,221

 

 

$

2,156

 

 

$

738

 

 

$

13,115

 

Amortization of intangibles

$

2,096

 

 

$

891

 

 

$

 

 

$

2,987

 

Income (loss) from operations

$

44,872

 

 

$

6,668

 

 

$

(20,010

)

 

$

31,530

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(647

)

 

 

(647

)

Income taxes

 

 

 

 

 

 

 

 

 

(5,905

)

 

 

(5,905

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

$

24,978

 

Three Months Ended March 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

332,926

 

 

$

78,233

 

 

$

7

 

 

$

411,166

 

Percentage of revenues

 

81.0

%

 

 

19.0

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

10,033

 

 

$

1,705

 

 

$

723

 

 

$

12,461

 

Amortization of intangibles

$

3,286

 

 

$

833

 

 

$

 

 

$

4,119

 

Income (loss) from operations

$

35,779

 

 

$

3,180

 

 

$

(14,565

)

 

$

24,394

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(5,250

)

 

 

(5,250

)

Income taxes

 

 

 

 

 

 

 

 

 

(5,226

)

 

 

(5,226

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

13,918

 

 

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

Operations by Delivery Location

The following table represents a disaggregation of revenue from contracts with customers by delivery location and by the reportable segment (in thousands):

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Americas:

 

 

 

 

 

 

 

United States

$

170,004

 

 

$

157,666

 

The Philippines

 

67,994

 

 

 

64,439

 

Costa Rica

 

37,526

 

 

 

34,881

 

Canada

 

27,987

 

 

 

25,241

 

El Salvador

 

17,996

 

 

 

18,720

 

Other

 

42,212

 

 

 

31,979

 

Total Americas

 

363,719

 

 

 

332,926

 

EMEA:

 

 

 

 

 

 

 

Germany

 

29,023

 

 

 

24,651

 

Other

 

65,144

 

 

 

53,582

 

Total EMEA

 

94,167

 

 

 

78,233

 

Total Other

 

 

 

 

7

 

 

$

457,886

 

 

$

411,166

 

v3.21.1
Other Income (Expense) (Tables)
3 Months Ended
Mar. 31, 2021
Other Income And Expenses [Abstract]  
Other Income (Expense), Net

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

 

 

Three Months Ended March 31,

 

 

2021

 

 

2020

 

Foreign currency transaction gains (losses)

$

(185

)

 

$

(1,606

)

Gains (losses) on derivative instruments not designated

   as hedges

 

35

 

 

 

(246

)

Net investment gains (losses) on investments held in

   rabbi trust

 

525

 

 

 

(2,057

)

Other miscellaneous income (expense)

 

(697

)

 

 

(884

)

 

$

(322

)

 

$

(4,793

)

v3.21.1
Overview and Basis of Presentation - Additional Information (Detail)
3 Months Ended 12 Months Ended
Mar. 31, 2021
USD ($)
Segment
Seat
Mar. 31, 2020
USD ($)
Mar. 31, 2021
USD ($)
Seat
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Number of reportable segments | Segment 2    
Description of agent distribution during COVID-19 As of the middle of April 2021, approximately 70% of agents assigned to the Company’s brick-and-mortar facilities have temporarily transitioned to a work-at-home model, 25% are working in centers and 5% of the Company’s agents are idle primarily due to the lack of technical infrastructure to work from home.    
Number of seats transitioned to at home | Seat 3,500   3,500
Impairment of operating lease right-of-use assets $ 700,000   $ 13,400,000
Impairment of property and equipment, net 100,000   $ 7,200,000
Proceeds from issuance of long-term debt   $ 23,000,000  
Accounts Receivable, Credit Loss Expense (Reversal) 236,000 586,000  
Accounts Receivable, Allowance for Credit Loss, Writeoff 100,000 300,000  
Noncurrent Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) $ 100,000 $ 0  
Advertising costs policy Expensed as incurred Expensed as incurred  
Accounting Standards Update 2019-12 [Member]      
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
ASU adoption status true   true
Change in accounting principle, accounting standards update, immaterial effect true   true
ASU adoption date Jan. 01, 2021   Jan. 01, 2021
Taylor Media Corp [Member]      
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Purchase price $ 104,900,000    
Payments to acquire businesses, gross $ 87,200,000    
Effective date of acquisition Dec. 31, 2020    
Business Combination, Consideration Transferred, Liabilities Incurred $ 17,700,000    
Business Combination, Consideration Transferred, Liabilities Incurred, Outstanding Debt 200,000    
Business Combination, Consideration Transferred, Liabilities Incurred, Deferred Purchase Price $ 17,500,000    
Business combination consideration transferred liabilities incurred payment terms payable on December 31, 2027, the seventh anniversary of the closing. In the event TMC’s previous owner remains employed by the Company or one of its subsidiaries on December 31, 2022, the second anniversary of the closing, the deferred payment will be accelerated and due at that time    
Business Combination, Cash Acquired $ 2,200,000   $ 2,200,000
Business Combination, Receivables Acquired 6,700,000   6,700,000
Business Combination, Noncurrent Assets Acquired 4,200,000   4,200,000
Business Combination, Goodwill Recognized 9,000,000.0   9,000,000.0
Business Combination, Liabilities Recognized 5,100,000   5,100,000
Taylor Media Corp [Member] | Domain Names, Content Library and Customer Relationships [Member]      
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Business Combination, Intangible Assets Acquired 87,900,000   $ 87,900,000
Taylor Media Corp [Member] | Revolving Credit Facility [Member]      
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Proceeds from issuance of long-term debt $ 63,000,000.0    
v3.21.1
Overview and Basis of Presentation - Summary of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Mar. 31, 2020
Dec. 31, 2019
Restricted Cash and Cash Equivalents Items [Line Items]        
Cash and cash equivalents $ 112,763 $ 103,077 $ 118,422 $ 127,246
Cash and Cash Equivalents and Restricted Cash 114,018 104,396 120,083 129,185
Other Current Assets [Member]        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash included in "Other current assets" 288 355 438 568
Deferred Charges and Other Assets [Member]        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash included in "Deferred charges and other assets" $ 967 $ 964 $ 1,223 $ 1,371
v3.21.1
Overview and Basis of Presentation - Schedule of Total Advertising Costs Included in Direct Salaries and Related Costs in Condensed Consolidated Statements of Operations (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Direct Salaries and Related Costs [Member]    
Organization Consolidation And Presentation Of Financial Statements [Line Items]    
Customer-acquisition advertising costs $ 19,565 $ 10,182
v3.21.1
Revenues - Revenues from Contracts with Customers Disaggregated by Service Type (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Disaggregation of Revenue [Line Items]    
Revenues $ 457,886 $ 411,166
% of Revenues 100.00% 100.00%
Americas [Member]    
Disaggregation of Revenue [Line Items]    
Revenues $ 363,719 $ 332,926
% of Revenues 79.40% 81.00%
Americas [Member] | Customer Experience Management Solutions and Services [Member]    
Disaggregation of Revenue [Line Items]    
Revenues $ 363,453 $ 332,614
% of Revenues 79.40% 80.90%
Americas [Member] | Other Revenues [Member]    
Disaggregation of Revenue [Line Items]    
Revenues $ 266 $ 312
% of Revenues 0.00% 0.10%
EMEA [Member]    
Disaggregation of Revenue [Line Items]    
Revenues $ 94,167 $ 78,233
% of Revenues 20.60% 19.00%
EMEA [Member] | Customer Experience Management Solutions and Services [Member]    
Disaggregation of Revenue [Line Items]    
Revenues $ 89,336 $ 72,633
% of Revenues 19.50% 17.70%
EMEA [Member] | Other Revenues [Member]    
Disaggregation of Revenue [Line Items]    
Revenues $ 4,831 $ 5,600
% of Revenues 1.10% 1.30%
Other Segment [Member]    
Disaggregation of Revenue [Line Items]    
Revenues   $ 7
% of Revenues 0.00% 0.00%
Other Segment [Member] | Other Revenues [Member]    
Disaggregation of Revenue [Line Items]    
Revenues   $ 7
% of Revenues 0.00% 0.00%
v3.21.1
Revenues - Summary of Trade Accounts Receivable, Net (Detail) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net $ 422,990 $ 428,133
Receivables, Net [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net, current 393,157 398,112
Deferred Charges and Other Assets [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net, noncurrent $ 29,833 $ 30,021
v3.21.1
Revenues - Components of Deferred Revenue and Customer Liabilities (Detail) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Schedule of Deferred Revenue and Customer Liabilities [Line Items]    
Deferred revenue and customer liabilities $ 25,744 $ 24,802
Deferred Revenue and Customer Liabilities [Member]    
Schedule of Deferred Revenue and Customer Liabilities [Line Items]    
Deferred revenue 2,772 2,916
Customer arrangements with termination rights 15,326 15,771
Estimated refund liabilities $ 7,646 $ 6,115
v3.21.1
Revenues - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Revenue From Contract With Customer [Abstract]    
Deferred revenue recognized in the period $ 2.8 $ 2.7
Revenue remaining performance obligation expected timing of satisfaction explanation The Company expects to recognize the majority of its deferred revenue as of March 31, 2021 over the next 180 days.  
Estimated refund liabilities timing of resolution explanation Estimated refund liabilities are generally resolved within 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency.  
v3.21.1
Leases - Additional Information (Detail) - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Lessee Lease Description [Line Items]    
Finance lease $ 0  
General and Administrative [Member]    
Lessee Lease Description [Line Items]    
Lease costs, net $ 15,600,000 $ 16,000,000.0
v3.21.1
Leases - Schedule of Additional Supplemental Information Related to Leases (Detail)
Mar. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Weighted average remaining lease term of operating leases 4 years 1 month 6 days 4 years 3 months 18 days
Weighted average discount rate of operating leases 3.40% 3.40%
v3.21.1
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Operating Lease Liabilities Payments Due [Abstract]    
2021 (remainder of the year) $ 45,075  
2022 48,783  
2023 32,335  
2024 22,998  
2025 14,755  
2026 and thereafter 18,753  
Total future lease payments 182,699  
Less: Imputed interest 13,160  
Present value of future lease payments 169,539  
Less: Operating lease liabilities 53,043 $ 55,928
Long-term operating lease liabilities $ 116,496 $ 126,336
v3.21.1
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Assets:    
Derivative Assets $ 905 $ 337
Total assets 18,913 17,117
Liabilities:    
Derivative Liabilities 1,411 2,478
Total liabilities 1,411 2,478
Quoted Prices in Active Markets For Identical Assets Level 1 [Member]    
Assets:    
Total assets 18,008 16,780
Liabilities:    
Total liabilities 0 0
Significant Other Observable Inputs Level 2 [Member]    
Assets:    
Total assets 905 337
Liabilities:    
Total liabilities 1,411 2,478
Significant Unobservable Inputs Level 3 [Member]    
Assets:    
Total assets 0 0
Liabilities:    
Total liabilities 0 0
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 13,558 11,263
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Quoted Prices in Active Markets For Identical Assets Level 1 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 13,558 11,263
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Other Observable Inputs Level 2 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 0 0
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Unobservable Inputs Level 3 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 0 0
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 4,450 5,517
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Quoted Prices in Active Markets For Identical Assets Level 1 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 4,450 5,517
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Other Observable Inputs Level 2 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 0 0
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Unobservable Inputs Level 3 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 0 0
Foreign Currency Contracts [Member]    
Assets:    
Derivative Assets 905 337
Liabilities:    
Derivative Liabilities 1,411 2,478
Foreign Currency Contracts [Member] | Quoted Prices in Active Markets For Identical Assets Level 1 [Member]    
Assets:    
Derivative Assets 0 0
Liabilities:    
Derivative Liabilities 0 0
Foreign Currency Contracts [Member] | Significant Other Observable Inputs Level 2 [Member]    
Assets:    
Derivative Assets 905 337
Liabilities:    
Derivative Liabilities 1,411 2,478
Foreign Currency Contracts [Member] | Significant Unobservable Inputs Level 3 [Member]    
Assets:    
Derivative Assets 0 0
Liabilities:    
Derivative Liabilities $ 0 $ 0
v3.21.1
Fair Value - Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2021
Mar. 31, 2021
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]    
Impairment of property and equipment, net $ 100 $ 7,200
Impairment of operating lease right-of-use assets 700 $ 13,400
Impairment of long-lived assets 1,150  
Americas [Member]    
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]    
Impairment of long-lived assets 357  
EMEA [Member]    
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]    
Impairment of long-lived assets 475  
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Americas [Member]    
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]    
Impairment of operating lease right-of-use assets 301  
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | EMEA [Member]    
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]    
Impairment of operating lease right-of-use assets 398  
Significant Other Observable Inputs Level 2 [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 property and equipment, net 56  
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Property and Equipment [Member] | EMEA [Member]    
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]    
Impairment of property and equipment, net 77  
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Property and Equipment [Member] | Other Segment [Member]    
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]    
Impairment of property and equipment, net $ 318  
v3.21.1
Fair Value - Additional Information (Detail)
$ in Thousands
3 Months Ended
Mar. 31, 2021
USD ($)
Seat
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair value of ROU assets $ 400
Fair value of property and equipment $ 0
Number of seats transitioned to at home | Seat 3,500
Impairment losses $ 1,150
Software [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair value of property and equipment 0
Impairment losses $ 300
v3.21.1
Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets subject to amortization, Gross Intangibles $ 209,958 $ 209,855
Intangible assets subject to amortization, Accumulated Amortization (142,025) (139,012)
Intangible assets subject to amortization, Net Intangibles $ 67,933 $ 70,843
Intangible assets subject to amortization, Weighted Average Amortization Period (years) 9 years 9 years
Gross Intangibles, Total $ 373,183 $ 372,987
Net Intangibles, Total 231,158 233,975
Customer Relationships [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets subject to amortization, Gross Intangibles 195,257 195,116
Intangible assets subject to amortization, Accumulated Amortization (136,132) (133,689)
Intangible assets subject to amortization, Net Intangibles $ 59,125 $ 61,427
Intangible assets subject to amortization, Weighted Average Amortization Period (years) 10 years 10 years
Trade Name and Trademarks [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets subject to amortization, Gross Intangibles $ 7,949 $ 7,918
Intangible assets subject to amortization, Accumulated Amortization (3,485) (3,225)
Intangible assets subject to amortization, Net Intangibles $ 4,464 $ 4,693
Intangible assets subject to amortization, Weighted Average Amortization Period (years) 8 years 8 years
Non-Compete Agreements [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets subject to amortization, Gross Intangibles $ 1,053 $ 1,100
Intangible assets subject to amortization, Accumulated Amortization (794) (712)
Intangible assets subject to amortization, Net Intangibles $ 259 $ 388
Intangible assets subject to amortization, Weighted Average Amortization Period (years) 3 years 3 years
Content Library [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets subject to amortization, Gross Intangibles $ 4,829 $ 4,851
Intangible assets subject to amortization, Accumulated Amortization (744) (551)
Intangible assets subject to amortization, Net Intangibles $ 4,085 $ 4,300
Intangible assets subject to amortization, Weighted Average Amortization Period (years) 5 years 5 years
Proprietary Software [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets subject to amortization, Gross Intangibles $ 870 $ 870
Intangible assets subject to amortization, Accumulated Amortization $ (870) (835)
Intangible assets subject to amortization, Net Intangibles   $ 35
Intangible assets subject to amortization, Weighted Average Amortization Period (years) 5 years 5 years
Domain Names [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets not subject to amortization, Gross Intangibles $ 163,225 $ 163,132
Intangible assets not subject to amortization, Net Intangibles $ 163,225 $ 163,132
v3.21.1
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail)
$ in Thousands
Mar. 31, 2021
USD ($)
Finite Lived Intangible Assets Future Amortization Expense [Abstract]  
2021 (remainder of the year) $ 8,749
2022 10,414
2023 8,309
2024 8,074
2025 7,961
2026 6,980
2027 and thereafter $ 17,446
v3.21.1
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Goodwill [Line Items]    
Beginning Balance, Goodwill Net $ 299,409 $ 311,247
Acquisition-Related 176  
Goodwill Acquired During the Period   8,851
Impairment 0 (21,792)
Effect of Foreign Currency (289) 1,103
Ending Balance, Goodwill Net 299,296 299,409
Americas [Member]    
Goodwill [Line Items]    
Beginning Balance, Goodwill Net 269,472 259,953
Acquisition-Related 176  
Goodwill Acquired During the Period   8,851
Impairment 0  
Effect of Foreign Currency 151 668
Ending Balance, Goodwill Net 269,799 269,472
EMEA [Member]    
Goodwill [Line Items]    
Beginning Balance, Goodwill Net 29,937 51,294
Acquisition-Related 0  
Impairment 0 (21,792)
Effect of Foreign Currency (440) 435
Ending Balance, Goodwill Net $ 29,497 $ 29,937
v3.21.1
Goodwill and Intangible Assets - Additional Information (Detail)
1 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2021
USD ($)
Reporting_Unit
Mar. 31, 2021
USD ($)
Reporting_Unit
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Goodwill [Line Items]        
Number of reporting units | Reporting_Unit   8    
Number of reporting units including goodwill | Reporting_Unit   7    
Number of reporting units, fair value in excess of carrying value | Reporting_Unit 3 3    
Number of reporting units, goodwill not impaired | Reporting_Unit   6    
Goodwill Impairment Loss   $ 0 $ 21,792,000  
Goodwill $ 299,296,000 299,296,000 $ 299,409,000 $ 311,247,000
Clearlink [Member]        
Goodwill [Line Items]        
Goodwill Impairment Loss   0    
Goodwill 83,400,000 83,400,000    
Symphony [Member]        
Goodwill [Line Items]        
Goodwill Impairment Loss 0 21,800,000    
Goodwill 19,300,000 19,300,000    
Latin America [Member]        
Goodwill [Line Items]        
Goodwill Impairment Loss   0    
Goodwill 18,200,000 18,200,000    
Qelp [Member]        
Goodwill [Line Items]        
Goodwill Impairment Loss   0    
Goodwill $ 10,200,000 $ 10,200,000    
v3.21.1
Financial Derivatives - Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]    
Deferred gains (losses) in AOCI $ (1,212) $ (2,188)
Tax on deferred gains (losses) in AOCI 12 (3)
Deferred gains (losses) in AOCI, net of taxes (1,200) $ (2,191)
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months $ (1,031)  
v3.21.1
Financial Derivatives - Outstanding Foreign Currency Forward Contracts and Options (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
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 $ 42,000 $ 12,000
Settle Through Date Dec. 31, 2021 Jun. 30, 2021
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 $ 30,000 $ 36,000
Settle Through Date Aug. 31, 2022 Dec. 31, 2021
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Hungarian Forints [Member]    
Derivative [Line Items]    
Notional Amount $ 1,689  
Settle Through Date Dec. 31, 2021  
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Romanian Leis [Member]    
Derivative [Line Items]    
Notional Amount $ 11,000  
Settle Through Date Dec. 31, 2021  
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Forwards [Member]    
Derivative [Line Items]    
Notional Amount $ 12,481 $ 12,439
Settle Through Date Nov. 30, 2021 Nov. 30, 2021
v3.21.1
Financial Derivatives - Additional Information (Detail) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]    
Maximum amount of loss due to credit risk $ 900,000 $ 300,000
Total net settlement amount asset positions 800,000 300,000
Total net settlement amount liability positions $ 1,300,000 $ 2,400,000
v3.21.1
Financial Derivatives - Derivative Instruments Fair Value (Detail) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Derivatives, Fair Value [Line Items]    
Derivative Assets $ 905 $ 337
Derivative Liabilities 1,411 2,478
Foreign Currency Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 905 337
Derivative Liabilities 1,411 2,478
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 394 183
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Accrued Expenses and Current Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 75 225
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 1,336 2,253
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Contracts [Member] | Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 511 154
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Contracts [Member] | Other Long Term Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 181  
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Contracts [Member] | Other Accrued Expenses and Current Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities $ 1,155 $ 2,253
v3.21.1
Financial Derivatives - Effect of Company's Derivative Instruments (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]    
Revenues $ 457,886 $ 411,166
Gains (losses) recognized from derivatives 35 (246)
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Gains (losses) recognized in AOCI: 208 (311)
Revenues [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Gains (losses) reclassified from AOCI: (757) 926
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Gains (losses) recognized from derivatives $ 35 $ (246)
v3.21.1
Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) - Mutual Funds [Member] - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Mutual funds, Cost $ 11,088 $ 10,332
Other Current Assets [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Mutual funds, Fair Value $ 18,008 $ 16,780
v3.21.1
Investments Held in Rabbi Trust - Additional Information (Detail)
Mar. 31, 2021
Equity-Based Securities [Member]  
Schedule of Trading Securities and Other Trading Assets [Line Items]  
Mutual funds held in rabbi trust 75.00%
Debt-Based Securities [Member]  
Schedule of Trading Securities and Other Trading Assets [Line Items]  
Mutual funds held in rabbi trust 25.00%
v3.21.1
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
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Net realized gains (losses) from sale of trading securities $ 425 $ 50
Dividend and interest income 32 33
Net unrealized holding gains (losses) 68 (2,140)
Net investment income (losses) $ 525 $ (2,057)
v3.21.1
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance $ 893,654 $ 874,475
Pre-tax amount (4,249) 9,708
Tax (provision) benefit 15 (71)
Reclassification of (gain) loss to net income 755 (3,635)
Ending Balance 916,463 893,654
Foreign Currency Translation Adjustments [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance (40,450) (52,749)
Pre-tax amount (4,457) 12,461
Foreign currency translation (6) (162)
Ending Balance (44,913) (40,450)
Unrealized Gain (Loss) on Net Investment Hedge [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance 1,046 1,046
Ending Balance 1,046 1,046
Unrealized Gain (Loss) on Cash Flow Hedging Instruments [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance (2,191) 2,290
Pre-tax amount 208 (839)
Tax (provision) benefit 15 (253)
Reclassification of (gain) loss to net income 756 (3,418)
Foreign currency translation 12 29
Ending Balance (1,200) (2,191)
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance 596 2,324
Pre-tax amount   (1,914)
Tax (provision) benefit   182
Reclassification of (gain) loss to net income (1) (129)
Foreign currency translation (6) 133
Ending Balance 589 596
Unrealized Gain (Loss) on Postretirement Obligation [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance   88
Reclassification of (gain) loss to net income   (88)
Accumulated Other Comprehensive Income (Loss) [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance (40,999) (47,001)
Ending Balance $ (44,478) $ (40,999)
v3.21.1
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Pre-tax amount $ 30,883 $ 19,144
Tax (provision) benefit 5,905 5,226
Reclassification of gain (loss) to net income 24,978 13,918
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 (755) 946
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 1 (28)
Reclassification of gain (loss) to net income (756) 898
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   3
Reclassification of gain (loss) to net income 1 26
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 (757) 926
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 $ 1 23
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   $ 22
v3.21.1
Income Taxes - Summary of Effective Tax Rates (Detail)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Tax Disclosure [Abstract]    
Effective tax rate 19.10% 27.30%
v3.21.1
Income Taxes - Additional Information (Detail)
$ in Millions
3 Months Ended
Mar. 31, 2021
USD ($)
Income Tax [Line Items]  
Statutory federal income tax rate 21.00%
Philippines [Member]  
Income Tax [Line Items]  
Discrete income tax benefit $ 1.2
v3.21.1
Earnings Per Share - Number of Shares Used in Earnings Per Share Computation (Detail) - shares
shares in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Basic:    
Weighted average common shares outstanding 39,641 41,132
Diluted:    
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust 315 202
Total weighted average diluted shares outstanding 39,956 41,334
Anti-dilutive shares excluded from the diluted earnings per share calculation 25 12
v3.21.1
Earnings Per Share - Additional Information (Detail) - 2011 Share Repurchase Program [Member] - shares
3 Months Ended 115 Months Ended
Mar. 31, 2021
Mar. 31, 2021
Mar. 16, 2016
Aug. 18, 2011
Equity, Class of Treasury Stock [Line Items]        
Maximum amount of shares authorized for repurchase     10,000,000.0 5,000,000.0
Total Number of Shares Repurchased 860,000 8,300,000    
Increase in shares authorized for repurchase     5,000,000.0  
v3.21.1
Earnings Per Share - Shares Repurchased (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 115 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Mar. 31, 2021
Schedule Of Shares Repurchased [Line Items]      
Total Cost of Shares Repurchased $ 22,909 $ 22,909  
Minimum [Member]      
Schedule Of Shares Repurchased [Line Items]      
Range of Prices Paid Per Share $ 23.33    
Maximum [Member]      
Schedule Of Shares Repurchased [Line Items]      
Range of Prices Paid Per Share $ 31.91    
2011 Share Repurchase Program [Member]      
Schedule Of Shares Repurchased [Line Items]      
Total Number of Shares Repurchased 860   8,300
v3.21.1
Commitments and Loss Contingencies - Additional Information (Detail)
3 Months Ended
Mar. 31, 2021
USD ($)
Minimum [Member]  
Long-term Purchase Commitment [Line Items]  
Term of agreements with third party vendors 1 year
Maximum [Member]  
Long-term Purchase Commitment [Line Items]  
Term of agreements with third party vendors 5 years
Loss Contingency, net of federal benefit $ 1,900,000
v3.21.1
Defined Benefit Pension Plan and Postretirement Benefits - Net Periodic Benefit Cost for Pension Plans (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Defined Benefit Plan Net Periodic Benefit Cost [Abstract]    
Service cost $ 181 $ 105
Interest cost 61 51
Recognized actuarial (gains) (1) (23)
Net periodic benefit cost $ 241 $ 133
v3.21.1
Defined Benefit Pension Plan and Postretirement Benefits - Company's Contributions to Employee Retirement Savings Plans (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Compensation And Retirement Disclosure [Abstract]    
401(k) plan contributions $ 851 $ 780
v3.21.1
Stock-Based Compensation - Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company Both Plan and Non-Plan (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
General and Administrative [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock-based compensation (expense) $ (4,751) $ (1,860)
Income Taxes [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Income tax benefit $ 1,140 $ 446
v3.21.1
Stock-Based Compensation - Additional Information (Detail) - Equity Incentive Plan [Member]
shares in Millions
3 Months Ended
Mar. 31, 2021
$ / shares
shares
Performance-Based Restricted Shares/Restricted Stock Units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares granted | shares 0.3
Weighted average grant-date fair value | $ / shares $ 44.79
Employment-Based Restricted Shares/Restricted Stock Units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares granted | shares 0.1
Weighted average grant-date fair value | $ / shares $ 44.79
v3.21.1
Segments and Geographic Information - Additional Information (Detail)
3 Months Ended
Mar. 31, 2021
Segment
Region
Segment Reporting [Abstract]  
Number of operating regions | Region 2
Number of reportable segments | Segment 2
v3.21.1
Segments and Geographic Information - Company's Reportable Segments (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Segment Reporting Information [Line Items]    
Revenues $ 457,886 $ 411,166
Percentage of revenues 100.00% 100.00%
Depreciation, net $ 13,115 $ 12,461
Amortization of intangibles 2,987 4,119
Income (loss) from operations 31,530 24,394
Total other income (expense), net (647) (5,250)
Income taxes (5,905) (5,226)
Net income 24,978 13,918
Americas [Member]    
Segment Reporting Information [Line Items]    
Revenues $ 363,719 $ 332,926
Percentage of revenues 79.40% 81.00%
Americas [Member] | Operating Segments [Member]    
Segment Reporting Information [Line Items]    
Revenues $ 363,719 $ 332,926
Percentage of revenues 79.40% 81.00%
Depreciation, net $ 10,221 $ 10,033
Amortization of intangibles 2,096 3,286
Income (loss) from operations 44,872 35,779
EMEA [Member]    
Segment Reporting Information [Line Items]    
Revenues $ 94,167 $ 78,233
Percentage of revenues 20.60% 19.00%
EMEA [Member] | Operating Segments [Member]    
Segment Reporting Information [Line Items]    
Revenues $ 94,167 $ 78,233
Percentage of revenues 20.60% 19.00%
Depreciation, net $ 2,156 $ 1,705
Amortization of intangibles 891 833
Income (loss) from operations $ 6,668 3,180
Other Segment [Member]    
Segment Reporting Information [Line Items]    
Revenues   $ 7
Percentage of revenues 0.00% 0.00%
Depreciation, net $ 738 $ 723
Income (loss) from operations (20,010) (14,565)
Total other income (expense), net (647) (5,250)
Income taxes $ (5,905) $ (5,226)
v3.21.1
Segments and Geographic Information - Operation by Delivery Location (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Segment Reporting Information [Line Items]    
Revenue $ 457,886 $ 411,166
Americas [Member]    
Segment Reporting Information [Line Items]    
Revenue 363,719 332,926
Americas [Member] | Operating Segments [Member]    
Segment Reporting Information [Line Items]    
Revenue 363,719 332,926
Americas [Member] | Operating Segments [Member] | United States [Member]    
Segment Reporting Information [Line Items]    
Revenue 170,004 157,666
Americas [Member] | Operating Segments [Member] | Philippines [Member]    
Segment Reporting Information [Line Items]    
Revenue 67,994 64,439
Americas [Member] | Operating Segments [Member] | Costa Rica [Member]    
Segment Reporting Information [Line Items]    
Revenue 37,526 34,881
Americas [Member] | Operating Segments [Member] | Canada [Member]    
Segment Reporting Information [Line Items]    
Revenue 27,987 25,241
Americas [Member] | Operating Segments [Member] | El Salvador [Member]    
Segment Reporting Information [Line Items]    
Revenue 17,996 18,720
Americas [Member] | Operating Segments [Member] | Other [Member]    
Segment Reporting Information [Line Items]    
Revenue 42,212 31,979
EMEA [Member]    
Segment Reporting Information [Line Items]    
Revenue 94,167 78,233
EMEA [Member] | Operating Segments [Member]    
Segment Reporting Information [Line Items]    
Revenue 94,167 78,233
EMEA [Member] | Operating Segments [Member] | Other [Member]    
Segment Reporting Information [Line Items]    
Revenue 65,144 53,582
EMEA [Member] | Operating Segments [Member] | Germany [Member]    
Segment Reporting Information [Line Items]    
Revenue $ 29,023 24,651
Other Segment [Member]    
Segment Reporting Information [Line Items]    
Revenue   $ 7
v3.21.1
Other Income (Expense) - Other Income (Expense), Net (Detail) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Other Nonoperating Income Expense [Abstract]    
Foreign currency transaction gains (losses) $ (185) $ (1,606)
Gains (losses) on derivative instruments not designated as hedges 35 (246)
Other miscellaneous income (expense) (697) (884)
Other income (expense) (322) (4,793)
Other Income (Expense), Net [Member]    
Other Nonoperating Income Expense [Abstract]    
Net investment gains (losses) on investments held in rabbi trust $ 525 $ (2,057)
v3.21.1
Related Party Transactions - Additional Information (Detail) - John H. Sykes [Member] - USD ($)
$ in Millions
1 Months Ended 3 Months Ended
Jan. 31, 2008
Mar. 31, 2021
Mar. 31, 2020
Schedule of Other Related Party Transactions [Line Items]      
Duration of lease 20 years    
Lease termination penalty   $ 0.1  
Early termination date   Mar. 31, 2021  
Payment to landlord under the lease terms   $ 0.1 $ 0.1
Related party transaction, description   In January 2008, the Company entered into a lease for a customer experience management 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.