SYKES ENTERPRISES INC, 10-Q filed on 11/5/2019
Quarterly Report
v3.19.3
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2019
Oct. 17, 2019
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2019  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
Trading Symbol SYKE  
Entity Registrant Name SYKES ENTERPRISES INC  
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   41,433,670
Entity Interactive Data Current Yes  
Title of 12(b) Security Common Stock, $0.01 par value  
Security Exchange Name NASDAQ  
Entity Incorporation, State or Country Code FL  
Document Quarterly Report true  
Document Transition Report false  
v3.19.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 142,572 $ 128,697
Receivables, net 353,707 347,425
Prepaid expenses 20,658 23,754
Other current assets 18,540 16,761
Total current assets 535,477 516,637
Property and equipment, net 122,106 135,418
Operating lease right-of-use assets 203,417  
Goodwill, net 303,800 302,517
Intangibles, net 160,479 174,031
Deferred charges and other assets 48,785 43,364
Total assets 1,374,064 1,171,967
Current liabilities:    
Accounts payable 27,197 26,923
Accrued employee compensation and benefits 113,451 95,813
Income taxes payable 1,786 1,433
Deferred revenue and customer liabilities 28,906 30,176
Operating lease liabilities 48,323  
Other accrued expenses and current liabilities 27,403 31,235
Total current liabilities 247,066 185,580
Long-term debt 77,000 102,000
Long-term income tax liabilities 22,198 23,787
Long-term operating lease liabilities 168,008  
Other long-term liabilities 21,641 33,991
Total liabilities 535,913 345,358
Commitments and loss contingency (Note 13)
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; 41,434 and 42,778 shares issued, respectively 414 428
Additional paid-in capital 289,110 286,544
Retained earnings 611,648 598,788
Accumulated other comprehensive income (loss) (60,438) (56,775)
Treasury stock at cost: 130 and 126 shares, respectively (2,583) (2,376)
Total shareholders' equity 838,151 826,609
Total liabilities and shareholders' equity $ 1,374,064 $ 1,171,967
v3.19.3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2019
Dec. 31, 2018
Statement Of Financial Position [Abstract]    
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 41,434,000 42,778,000
Treasury stock, shares 130,000 126,000
v3.19.3
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Statement [Abstract]        
Revenues $ 397,547 $ 399,333 $ 1,189,478 $ 1,210,489
Operating expenses:        
Direct salaries and related costs 253,669 261,474 767,558 801,470
General and administrative 102,620 105,148 311,582 309,625
Depreciation, net 12,449 14,072 39,398 43,468
Amortization of intangibles 4,103 3,638 12,516 11,480
Impairment of long-lived assets   555 1,711 9,256
Total operating expenses 372,841 384,887 1,132,765 1,175,299
Income from operations 24,706 14,446 56,713 35,190
Other income (expense):        
Interest income 234 183 611 529
Interest (expense) (1,091) (1,168) (3,448) (3,523)
Other income (expense), net (55) 919 22 537
Total other income (expense), net (912) (66) (2,815) (2,457)
Income before income taxes 23,794 14,380 53,898 32,733
Income taxes 5,689 628 12,837 855
Net income $ 18,105 $ 13,752 $ 41,061 $ 31,878
Net income per common share:        
Basic $ 0.44 $ 0.33 $ 0.98 $ 0.76
Diluted $ 0.44 $ 0.33 $ 0.98 $ 0.76
Weighted average common shares outstanding:        
Basic 41,190 42,136 41,808 42,070
Diluted 41,307 42,204 41,908 42,201
v3.19.3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]        
Net income $ 18,105 $ 13,752 $ 41,061 $ 31,878
Other comprehensive income (loss), net of taxes:        
Foreign currency translation adjustments, net of taxes (10,693) (2,177) (6,992) (15,483)
Unrealized gain (loss) on cash flow hedging instruments, net of taxes (1,130) (2,097) 3,370 (5,471)
Unrealized actuarial gain (loss) related to pension liability, net of taxes (46) 16 (26) (113)
Unrealized gain (loss) on postretirement obligation, net of taxes (5) (84) (15) (104)
Other comprehensive income (loss), net of taxes (11,874) (4,342) (3,663) (21,171)
Comprehensive income (loss) $ 6,231 $ 9,410 $ 37,398 $ 10,707
v3.19.3
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, 2017 $ 796,479 $ 429 $ 282,385 $ 546,843 $ (31,104) $ (2,074)
Beginning Balance, shares at Dec. 31, 2017   42,899        
Stock-based compensation expense 2,077   2,077      
Issuance of common stock under equity award plans, net of forfeitures     59     (59)
Issuance of common stock under equity award plans, net of forfeitures, Share   18        
Shares repurchased for tax withholding on equity awards (3,682) $ (1) (3,681)      
Shares repurchased for tax withholding on equity awards, Share   (118)        
Comprehensive income (loss) 8,253     10,948 (2,695)  
Ending Balance at Mar. 31, 2018 806,146 $ 428 280,840 560,810 (33,799) (2,133)
Ending Balance, shares at Mar. 31, 2018   42,799        
Beginning Balance at Dec. 31, 2017 796,479 $ 429 282,385 546,843 (31,104) (2,074)
Beginning Balance, shares at Dec. 31, 2017   42,899        
Comprehensive income (loss) 10,707          
Ending Balance at Sep. 30, 2018 811,836 $ 428 284,275 581,740 (52,275) (2,332)
Ending Balance, shares at Sep. 30, 2018   42,781        
Cumulative effect of accounting change | Accounting Standards Update 2014-09 [Member] 3,019     3,019    
Beginning Balance at Mar. 31, 2018 806,146 $ 428 280,840 560,810 (33,799) (2,133)
Beginning Balance, shares at Mar. 31, 2018   42,799        
Stock-based compensation expense 1,673   1,673      
Issuance of common stock under equity award plans, net of forfeitures     109     (109)
Issuance of common stock under equity award plans, net of forfeitures, Share   22        
Comprehensive income (loss) (6,956)     7,178 (14,134)  
Ending Balance at Jun. 30, 2018 800,863 $ 428 282,622 567,988 (47,933) (2,242)
Ending Balance, shares at Jun. 30, 2018   42,821        
Stock-based compensation expense 1,567   1,567      
Issuance of common stock under equity award plans, net of forfeitures     90     (90)
Issuance of common stock under equity award plans, net of forfeitures, Share   (40)        
Shares repurchased for tax withholding on equity awards (4)   (4)      
Comprehensive income (loss) 9,410     13,752 (4,342)  
Ending Balance at Sep. 30, 2018 811,836 $ 428 284,275 581,740 (52,275) (2,332)
Ending Balance, shares at Sep. 30, 2018   42,781        
Beginning Balance at Dec. 31, 2018 826,609 $ 428 286,544 598,788 (56,775) (2,376)
Beginning Balance, shares at Dec. 31, 2018   42,778        
Stock-based compensation expense 1,890   1,890      
Issuance of common stock under equity award plans, net of forfeitures   $ (2) 182     (180)
Issuance of common stock under equity award plans, net of forfeitures, Share   (168)        
Shares repurchased for tax withholding on equity awards (1,269)   (1,269)      
Shares repurchased for tax withholding on equity awards, Share   (45)        
Comprehensive income (loss) 14,701     11,687 3,014  
Ending Balance at Mar. 31, 2019 842,041 $ 426 287,347 610,585 (53,761) (2,556)
Ending Balance, shares at Mar. 31, 2019   42,565        
Beginning Balance at Dec. 31, 2018 826,609 $ 428 286,544 598,788 (56,775) (2,376)
Beginning Balance, shares at Dec. 31, 2018   42,778        
Repurchase of common stock (30,281)          
Comprehensive income (loss) 37,398          
Ending Balance at Sep. 30, 2019 838,151 $ 414 289,110 611,648 (60,438) (2,583)
Ending Balance, shares at Sep. 30, 2019   41,434        
Cumulative effect of accounting change | Accounting Standards Update 2016-02 [Member] 110     110    
Beginning Balance at Mar. 31, 2019 842,041 $ 426 287,347 610,585 (53,761) (2,556)
Beginning Balance, shares at Mar. 31, 2019   42,565        
Stock-based compensation expense 2,200   2,200      
Issuance of common stock under equity award plans, net of forfeitures     123     (123)
Issuance of common stock under equity award plans, net of forfeitures, Share   26        
Repurchase of common stock (20,178)         (20,178)
Retirement of treasury stock   $ (5) (791) (12,063)   12,859
Retirement of treasury stock, shares   (500)        
Comprehensive income (loss) 16,466     11,269 5,197  
Ending Balance at Jun. 30, 2019 840,529 $ 421 288,879 609,791 (48,564) (9,998)
Ending Balance, shares at Jun. 30, 2019   42,091        
Stock-based compensation expense 1,504   1,504      
Issuance of common stock under equity award plans, net of forfeitures   $ (1) (95)     96
Issuance of common stock under equity award plans, net of forfeitures, Share   (16)        
Shares repurchased for tax withholding on equity awards (10)   (10)      
Shares repurchased for tax withholding on equity awards, Share   (1)        
Repurchase of common stock (10,103)         (10,103)
Retirement of treasury stock   $ (6) (1,168) (16,248)   17,422
Retirement of treasury stock, shares   (640)        
Comprehensive income (loss) 6,231     18,105 (11,874)  
Ending Balance at Sep. 30, 2019 $ 838,151 $ 414 $ 289,110 $ 611,648 $ (60,438) $ (2,583)
Ending Balance, shares at Sep. 30, 2019   41,434        
v3.19.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities:    
Net income $ 41,061 $ 31,878
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 39,574 43,852
Amortization of intangibles 12,516 11,480
Amortization of deferred grants (266) (533)
Impairment losses 1,711 9,256
Unrealized foreign currency transaction (gains) losses, net (2,391) (686)
Stock-based compensation expense 5,594 5,317
Deferred income tax provision (benefit) (1,703) 229
Unrealized (gains) losses and premiums on financial instruments, net (545) 661
Amortization of deferred loan fees 211 201
Other 752 375
Changes in assets and liabilities, net of acquisitions:    
Receivables, net (10,067) (12,756)
Prepaid expenses (277) (1,164)
Other current assets 23 (1,101)
Deferred charges and other assets (3,413) (3,731)
Accounts payable (2,704) (1,490)
Income taxes receivable / payable (2,124) (6,429)
Accrued employee compensation and benefits 15,985 3,426
Other accrued expenses and current liabilities 3,055 10,447
Deferred revenue and customer liabilities (1,848) (1,612)
Other long-term liabilities 1,666 1,830
Operating lease assets and liabilities 776  
Net cash provided by operating activities 97,586 89,450
Cash flows from investing activities:    
Capital expenditures (24,491) (36,853)
Cash paid for business acquisitions, net of cash acquired   (21,845)
Purchase of intangible assets (292) (8,106)
Investment in equity method investees   (5,000)
Other 598 698
Net cash (used for) investing activities (24,185) (71,106)
Cash flows from financing activities:    
Payments of long-term debt (37,000) (220,000)
Proceeds from issuance of long-term debt 12,000 27,000
Cash paid for repurchase of common stock (30,281)  
Shares repurchased for tax withholding on equity awards (1,279) (3,686)
Cash paid for loan fees related to long-term debt (1,098)  
Other   42
Net cash (used for) financing activities (57,658) (196,644)
Effects of exchange rates on cash, cash equivalents and restricted cash (1,407) (8,186)
Net increase (decrease) in cash, cash equivalents and restricted cash 14,336 (186,486)
Cash, cash equivalents and restricted cash – beginning 130,231 344,805
Cash, cash equivalents and restricted cash – ending 144,567 158,319
Supplemental disclosures of cash flow information:    
Cash paid during period for interest 2,798 2,893
Cash paid during period for income taxes 18,185 15,423
Non-cash transactions:    
Property and equipment additions in accounts payable 5,104 2,450
Unrealized gain (loss) on postretirement obligation, net of taxes, in accumulated other comprehensive income (loss) $ (15) $ (104)
v3.19.3
Overview and Basis of Presentation
9 Months Ended
Sep. 30, 2019
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 provider of multichannel demand generation and global customer engagement services. SYKES provides differentiated full lifecycle customer engagement solutions and services primarily to Global 2000 companies and their end customers, principally within the financial services, communications, technology, transportation & leisure, healthcare and other industries. SYKES primarily provides customer engagement solutions and services with an emphasis on inbound multichannel demand generation, customer service and technical support to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. SYKES also provides various enterprise support services in the United States that include services for its clients’ internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services, which include order processing, payment processing, inventory control, product delivery and product returns handling. Additionally, through the Company’s acquisition of robotic processing automation (“RPA”) provider Symphony Ventures Ltd (“Symphony”) coupled with its investment in artificial intelligence (“AI”) through XSell Technologies, Inc. (“XSell”), the Company also provides a suite of solutions such as consulting, implementation, hosting and managed services that optimizes its differentiated full lifecycle management services platform. The Company has operations in two reportable segments entitled (1) the Americas, in which the client base is primarily companies in the United States that are using the Company’s services to support their customer management needs, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim; and (2) EMEA, which includes Europe, the Middle East and Africa.

U.S. 2017 Tax Reform Act

On December 20, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Reform Act”) was approved by Congress and received presidential approval on December 22, 2017. In general, the 2017 Tax Reform Act reduced the U.S. federal corporate tax rate from 35% to 21%, effective in 2018. The 2017 Tax Reform Act moved from a worldwide business taxation approach to a participation exemption regime. The 2017 Tax Reform Act also imposed base-erosion prevention measures on non-U.S. earnings of U.S. entities, as well as a one-time mandatory deemed repatriation tax on accumulated non-U.S. earnings. The impact of the 2017 Tax Reform Act on the Company’s consolidated financial results began with the fourth quarter of 2017, the period of enactment. See Note 11, Income Taxes, for further information.

Acquisitions

Symphony Acquisition

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

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

The aggregate purchase price was GBP 52.5 million ($67.6 million), subject to a post-closing working capital adjustment, of which the Company paid GBP 44.6 million ($57.6 million) at the closing of the transaction on November 1, 2018 using cash on hand as well as $31.0 million of additional borrowings under the Company’s credit agreement. The acquisition date present value of the remaining GBP 7.9 million ($10.0 million) of purchase price has been deferred and is payable in equal installments over three years, on or around November 1, 2019, 2020 and 2021. The Symphony Purchase Agreement also provides for a three-year, retention based earnout payable in restricted stock units (“RSUs”) with a value of GBP 3.0 million. The Symphony Purchase Agreement contains customary representations and warranties, indemnification obligations and covenants.

Subsequent to the finalization of the working capital adjustments during the quarter ended March 31, 2019, the purchase price was adjusted to GBP 52.4 million ($67.5 million). The acquisition resulted in $26.1 million of intangible assets, primarily customer relationships and trade names, $2.2 million of fixed assets and $36.2 million of goodwill.  

The Company accounted for the Symphony acquisition in accordance with Accounting Standards Codification (“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 will complete its analysis of the purchase price allocation in the fourth quarter of 2019 and any resulting adjustments will be recorded in accordance with ASC 805.

WhistleOut Acquisition

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

The aggregate purchase price of AUD 30.2 million ($22.4 million) was paid at the closing of the transaction on July 9, 2018. Subsequent to the finalization of the working capital adjustments during the quarter ended March 31, 2019, the purchase price was adjusted to AUD 30.3 million ($22.5 million). The purchase price was funded through $22.0 million of additional borrowings under the Company’s credit agreement. The WhistleOut Sale Agreement provides for a three-year, retention based earnout of AUD 14.0 million payable in three installments on or about July 1, 2019, 2020 and 2021.  The Company paid the first installment of the earn-out of AUD 6.0 million ($4.2 million) in July 2019.

The Company accounted for the WhistleOut acquisition in accordance with ASC 805, whereby the purchase price paid was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the closing date. The Company completed its tax analysis of the assets acquired and liabilities assumed during the second quarter of 2019, which resulted in deferred tax assets and liabilities in accordance with ASC 805. The final purchase price allocation resulted in $16.5 million of intangible assets, primarily indefinite-lived domain names, $2.4 million of fixed assets and $3.3 million of goodwill.

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 and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2019. 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, 2018, as filed with the Securities and Exchange Commission (“SEC”) on February 26, 2019.

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.

Subsequent Events Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. On November 5, 2019, the Company settled an insurance claim related to damage to its customer engagement center located in Fort Smith, Arkansas. See Note 19, Subsequent Event, for further information. There were no other 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):

 

 

September 30, 2019

 

 

December 31, 2018

 

 

September 30, 2018

 

 

December 31, 2017

 

Cash and cash equivalents

$

142,572

 

 

$

128,697

 

 

$

157,268

 

 

$

343,734

 

Restricted cash included in "Other current assets"

 

563

 

 

 

149

 

 

 

158

 

 

 

154

 

Restricted cash included in "Deferred charges and

   other assets"

 

1,432

 

 

 

1,385

 

 

 

893

 

 

 

917

 

 

$

144,567

 

 

$

130,231

 

 

$

158,319

 

 

$

344,805

 

 

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

The Company’s net investment in XSell of $8.8 million and $9.2 million was included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018, respectively.  The Company’s investment was paid in two installments of $5.0 million, one in July 2017 and one in August 2018. The Company’s proportionate share of XSell’s net (loss) of $(0.1) million and $(0.2) million for the three months ended September 30, 2019 and 2018, respectively, and $(0.3) million and $(0.4) million for the nine months ended September 30, 2019 and 2018, respectively, was included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations.

As of September 30, 2019 and December 31, 2018, the Company did not identify any instances where the carrying values of its equity method investments were not recoverable.

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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Customer-acquisition advertising costs

$

11,188

 

 

$

13,907

 

 

$

33,328

 

 

$

35,835

 

 

Reclassifications — Certain balances in the prior period have been reclassified to conform to current period presentation.  

New Accounting Standards Not Yet Adopted

Fair Value Measurements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). These amendments remove, modify or add certain disclosure requirements for fair value measurements.  These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Certain of the amendments will be applied

prospectively in the initial year of adoption while the remainder are required to be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. The Company does not expect its adoption of ASU 2018-13 to have a material impact on its disclosures and does not expect to early adopt the standard.

Retirement Benefits

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

Cloud Computing

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

Financial Instruments – Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). These amendments require measurement and recognition of expected versus incurred credit losses for financial assets held. Entities are required to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts.  Subsequently, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses in November 2018 and ASU 2019-05, Financial Instruments – Credit Losses (Topic 326) Targeted Transition Relief in May 2019 (together, “subsequent amendments”). ASU 2016-13 and the subsequent amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted.

The Company’s implementation team is substantially complete with the assessment of its data and the design of its financial models to estimate expected credit losses and continues to evaluate the critical factors of ASU 2016-13 to determine its impact on the Company’s business processes, systems, and internal controls. The Company expects ASU 2016-13 to apply to its trade receivables but does not expect the adoption of the amendments to have a material impact on its financial condition, results of operations or cash flows because credit losses associated with trade receivables have historically been insignificant. The adoption of ASU 2016-13 will require expanded quantitative and qualitative disclosures about the Company’s expected credit losses. Additionally, the Company does not anticipate early adopting ASU 2016-13.

Codification Improvements – Financial Instruments – Credit Losses, Derivatives and Hedging, and Financial Instruments

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”). These amendments clarify new standards on credit losses, hedging and recognizing and measuring financial instruments and address implementation issues stakeholders have raised. The credit losses and hedging amendments have the same effective dates as the respective standards, unless an entity has already adopted the standards. The amendments related to recognizing and measuring financial instruments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2019-04 to have a material impact on its financial condition, results of operations, cash flows or disclosures.

New Accounting Standards Recently Adopted

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”) and subsequent amendments (together, “ASC 842”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under ASC 840, Leases (“ASC 840”). These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted.  Entities have the option to either apply the amendments (1) at the beginning of the earliest period presented using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements or (2) at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without the need to restate prior periods. There are also certain optional practical expedients that an entity may elect to apply. The Company adopted ASC 842 as of January 1, 2019 using a modified retrospective transition, with the cumulative-effect adjustment to the opening balance of retained earnings as of the effective date. Periods prior to January 1, 2019 have not been restated.  

See Note 3, Leases, for further details as well as the Company’s significant accounting policy for leases.

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedge Activities (“ASU 2017-12”). These amendments help simplify certain aspects of hedge accounting and better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results.  For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively.  These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update.  The adoption of ASU 2017-12 on January 1, 2019 did not have a material impact on the financial condition, results of operations, cash flows or disclosures of the Company.  No cumulative-effect adjustment was recorded to opening retained earnings on the date of adoption as there was no ineffectiveness previously recorded in retained earnings that would have been included in other comprehensive income if the new guidance had been applied since hedge inception. Upon adoption of ASU 2017-12, the Company elected the spot method for assessing the effectiveness of net investment hedges and will record the amortization of excluded components of net investment hedges in “Other income (expense), net” in its consolidated financial statements. 

v3.19.3
Revenues
9 Months Ended
Sep. 30, 2019
Revenue From Contract With Customer [Abstract]  
Revenues

Note 2. Revenues

On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers (“ASC 606”), which included ASU 2014-09 and all related amendments, using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. The Company recorded an increase to opening retained earnings of $3.0 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606.  The impact, all in the Americas segment, primarily related to the change in timing of revenue recognition associated with certain customer contracts that provide fees upon renewal, as well as changes in estimating variable consideration with respect to penalties and holdback provisions for failure to meet specified minimum service levels and other performance-based contingencies.

Revenue from Contracts with Customers

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

Customer Engagement Solutions and Services

The Company provides customer engagement solutions and services with an emphasis on inbound multichannel demand generation, customer service and technical support to its clients’ customers. These services are delivered through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital

self-service. Revenues for customer engagement 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.

Other Revenues

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

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

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

In total, other revenues are immaterial, representing 2.6% and 0.5% of the Company’s consolidated total revenues for the three months ended September 30, 2019 and 2018, respectively, and 2.4% and 0.5% for the nine months ended September 30, 2019 and 2018, respectively.

Disaggregated Revenues

The Company disaggregates its revenues from contracts with customers by service type and geographic location (see Note 16, Segments and Geographic Information), for each of its reportable segments, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by economic factors.

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

$

317,806

 

 

$

328,535

 

 

$

952,438

 

 

$

995,723

 

Other revenues

 

291

 

 

 

227

 

 

 

743

 

 

 

801

 

Total Americas

 

318,097

 

 

 

328,762

 

 

 

953,181

 

 

 

996,524

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

 

69,329

 

 

 

68,859

 

 

 

208,969

 

 

 

208,302

 

Other revenues

 

10,098

 

 

 

1,684

 

 

 

27,262

 

 

 

5,588

 

Total EMEA

 

79,427

 

 

 

70,543

 

 

 

236,231

 

 

 

213,890

 

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

23

 

 

 

28

 

 

 

66

 

 

 

75

 

Total Other

 

23

 

 

 

28

 

 

 

66

 

 

 

75

 

 

$

397,547

 

 

$

399,333

 

 

$

1,189,478

 

 

$

1,210,489

 

Trade Accounts Receivable

 

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

 

 

September 30, 2019

 

 

December 31, 2018

 

Trade accounts receivable, net, current (1)

$

340,520

 

 

$

335,377

 

Trade accounts receivable, net, noncurrent (2)

 

19,457

 

 

 

15,948

 

 

$

359,977

 

 

$

351,325

 

 

(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.  

The Company’s noncurrent trade accounts receivable result from contracts with customers that include renewal provisions, as well as contracts with customers under multi-year arrangements.  

Deferred Revenue and Customer Liabilities

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

 

 

September 30, 2019

 

 

December 31, 2018

 

Deferred revenue

$

3,691

 

 

$

3,655

 

Customer arrangements with termination rights

 

15,891

 

 

 

16,404

 

Estimated refund liabilities

 

9,324

 

 

 

10,117

 

 

$

28,906

 

 

$

30,176

 

 

Deferred Revenue

 

The Company receives up-front fees in connection with certain contracts. In accordance with ASC 606, the up-front fees are recorded as a contract liability only to the extent a legally enforceable contract exists.  Accordingly, the up-front fees allocated to a contract’s termination notification period, typically varying periods up to 180 days, are recorded as deferred revenue, while the fees that extend beyond the notification period are classified as customer arrangements with termination rights.

 

Revenues of $0.2 million and $0.1 million were recognized during the three months ended September 30, 2019 and 2018, respectively, and revenues of $3.6 million and $4.3 million were recognized during the nine months ended September 30, 2019 and 2018, respectively, from amounts included in deferred revenue at December 31, 2018 and January 1, 2018, respectively.  The Company expects to recognize the majority of its deferred revenue as of September 30, 2019 over the next 180 days.

 

Customer Liabilities – Customer Arrangements with Termination Rights

 

The majority of the Company’s contracts include termination for convenience or without cause provisions allowing either party to cancel the contract without substantial cost or penalty within a defined notification period (“termination rights”). Customer arrangements with termination rights represent the amount of up-front fees received for unsatisfied performance obligations for periods that extend beyond the legally enforceable contract period. All customer arrangements with termination rights are classified as current as the customer can terminate the contracts and demand pro-rata refunds of the up-front fees over varying periods, typically up to 180 days. The Company expects to recognize the majority of the customer arrangements with termination rights into revenue as the Company has not historically experienced a high rate of early contract terminations.

 

Customer Liabilities – Estimated Refund Liabilities

 

Estimated refund liabilities represent consideration received under the contract that the Company expects to ultimately refund to the customer and primarily relates to estimated penalties, holdbacks and chargebacks.  Penalties and holdbacks result from the failure to meet specified minimum service levels in certain contracts and other performance-based contingencies.  Chargebacks reflect the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred. Estimated refund liabilities are generally resolved in 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency.

v3.19.3
Leases
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases

Note 3. Leases

Adoption of ASC 842, Leases

On January 1, 2019, the Company adopted ASC 842, which includes ASU 2016-02 and all related amendments, using the modified retrospective method and recognized a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. Results for reporting periods beginning after January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting for leases under ASC 840.

The adoption of ASC 842 on January 1, 2019 had a material impact on the Company’s Condensed Consolidated Balance Sheet, resulting in the recognition of $225.3 million of right-of-use ("ROU") assets, $239.3 million of operating lease liabilities, a $0.1 million increase to opening retained earnings, as well as $14.1 million primarily related to the derecognition of net straight-line lease liabilities. The retained earnings adjustment was due to the

cumulative impact of adopting ASC 842, primarily resulting from the derecognition of embedded lease derivatives, the difference between deferred rent balances and the net of ROU assets and lease liabilities and the deferred tax impact.

The impact of the adoption of ASC 842 to the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2019 was not material. The Company’s net cash provided by operating activities for the nine months ended September 30, 2019 did not change due to the adoption of ASC 842.

Practical Expedients

The Company elected the following practical expedients:

The package of transitional practical expedients, consistently applied to all leases, that permits the Company to not reassess whether any expired or existing contracts are or contain leases, the historical lease classification for any expired or existing leases and initial direct costs for any expired or existing leases; and

The practical expedient that permits the Company to make an accounting policy election (by class of underlying asset) to account for each separate lease component of a contract and its associated non-lease components as a single lease component for all leases entered into or modified after the January 1, 2019 adoption date.

 

Accounting Policy

In determining whether a contract contains a lease, the Company assesses whether the arrangement meets all three of the following criteria: 1) there is an identified asset; 2) the Company has the right to obtain substantially all the economic benefits from use of the identified asset; and 3) the Company has the right to direct the use of the identified asset. This involves evaluating whether the Company has the right to operate the asset or to direct others to operate the asset in a manner that it determines without the supplier having the right to change those operating instructions, as well as evaluating the Company’s involvement in the design of the asset.

The Company capitalizes operating lease obligations with initial terms in excess of 12 months as ROU assets with corresponding lease liabilities on its balance sheet.  Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Additionally, the ROU asset is adjusted for lease incentives, prepaid lease payments and initial direct costs. Operating lease expense is recognized on a straight-line basis over the lease term.

The Company has lease agreements with lease and non-lease components, such as real estate taxes, insurance, common area maintenance and other operating costs.  Lease and non-lease components are generally accounted for as a single component to the extent that the costs are fixed per the arrangement. The Company has applied this accounting policy to all asset classes. To the extent that the non-lease components are not fixed per the arrangement, these costs are treated as variable lease costs and expensed as incurred.  

Certain of the Company’s lease agreements include rental payments that adjust periodically based on an index or rate, generally the applicable Consumer Price Index (“CPI”). The operating lease liability is measured using the prevailing index or rate at the measurement date (i.e., the commencement date); however, the most recent CPI in effect as of January 1, 2019 was used to effectuate the adoption of ASC 842. Incremental payments due to changes to the index- and rate-based lease payments are treated as variable lease costs and expensed as incurred.  

For purposes of calculating operating lease liabilities, the lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The primary factors used to estimate whether an option to extend a lease term will be exercised or not generally include the extent of the Company’s capital investment, employee recruitment potential and operational cost and flexibility.

In determining the present value of lease payments, the Company typically uses incremental borrowing rates based on information available at the lease commencement date. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s incremental borrowing rate is estimated using a synthetic credit rating model and forward currency exchange rates, as applicable.  

Payments on leases with an initial term of 12 months or less are recognized in the accompanying Condensed Consolidated Statements of Operations on a straight-line basis over the lease term.

The ROU asset is evaluated for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, Property, Plant and Equipment. A loss is recognized when the ROU asset is impaired in connection with the impairment of a site’s assets due to economic or other factors.  When the ROU asset is impaired, it is typically amortized on a straight-line basis over the shorter of the remaining lease term or its useful life, and the related operating lease would no longer qualify for straight-line treatment of total lease expense.  

Leases

The Company leases facilities for its corporate headquarters, many of its customer engagement centers, several regional support offices and data centers. These leases are classified as operating 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 September 30, 2019. The Company has no finance leases.

Lease terms for the Company’s leases are generally three to 20 years with renewal options typically ranging from one month to five years and largely require the Company to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. The Company's operating leases have remaining lease terms of one month to 13 years as of September 30, 2019.  

The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.

The Company subleases certain of its facilities that have been abandoned before the expiration of the lease term.  Operating lease costs on abandoned facilities are reduced by sublease income and included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations. The Company’s sublease arrangements do not contain renewal options or restrictive covenants. The Company’s subleases have varying remaining lease terms extending through 2025, and future contractual sublease income is expected to be $13.2 million over the remaining lease terms.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense were as follows (in thousands):

 

Statement of Operations Location

 

Three Months Ended September 30, 2019

 

 

Nine Months Ended September 30, 2019

 

Operating lease cost

Direct salaries and related costs

 

$

37

 

 

$

170

 

Operating lease cost

General and administrative

 

 

14,645

 

 

 

44,460

 

Short-term lease cost

General and administrative

 

 

970

 

 

 

1,783

 

Variable lease cost

Direct salaries and related costs

 

 

 

 

 

(1

)

Variable lease cost

General and administrative

 

 

1,116

 

 

 

3,426

 

Sublease income

General and administrative

 

 

(870

)

 

 

(1,867

)

 

 

 

$

15,898

 

 

$

47,971

 

Supplemental cash flow information related to leases was as follows (in thousands):

 

Nine Months Ended September 30, 2019

 

Cash paid for amounts included in the measurement of operating lease liabilities - operating

   cash flows

$

43,387

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

18,447

 

 

Additional supplemental information related to leases was as follows:

 

September 30, 2019

 

Weighted average remaining lease term of operating leases

5.4 years

 

Weighted average discount rate of operating leases

 

3.7

%

Maturities of operating lease liabilities as of September 30, 2019 were as follows (in thousands):

 

Amount

 

2019 (remainder of the year)

$

10,767

 

2020

 

57,324

 

2021

 

51,118

 

2022

 

39,370

 

2023

 

25,829

 

2024 and thereafter

 

55,475

 

Total future lease payments

 

239,883

 

Less: Imputed interest

 

23,552

 

Present value of future lease payments

 

216,331

 

Less: Operating lease liabilities

 

48,323

 

Long-term operating lease liabilities

$

168,008

 

As of September 30, 2019, the Company had additional operating leases for customer engagement centers that had not yet commenced with future lease payments of $0.7 million. These operating leases will commence during the fourth quarter of 2019 with lease terms between 1 and 6 years.

 

Disclosures related to periods prior to adoption of ASC 842

Rental expense under operating leases, primarily included in “General and administrative” in the accompanying Condensed Consolidated Statement of Operations, for the three and nine months ended September 30, 2018 was $19.0 million and $53.6 million, respectively.

The following is a schedule of future minimum rental payments required under operating leases that had noncancelable lease terms as of December 31, 2018 under ASC 840 (in thousands):

 

Amount

 

2019

$

53,071

 

2020

 

48,770

 

2021

 

43,324

 

2022

 

34,063

 

2023

 

22,583

 

2024 and thereafter

 

51,456

 

 

$

253,267

 

v3.19.3
Costs Associated with Exit or Disposal Activities
9 Months Ended
Sep. 30, 2019
Restructuring And Related Activities [Abstract]  
Costs Associated with Exit or Disposal Activities

Note 4. Costs Associated with Exit or Disposal Activities

During the first quarter of 2019, the Company initiated a restructuring plan to simplify and refine its operating model in the U.S. (the “Americas 2019 Exit Plan”), in part to improve agent attrition and absenteeism. The Americas 2019 Exit Plan includes, but is not limited to, closing customer contact management centers, consolidating leased space in various locations in the U.S. and management reorganization. The Company finalized these actions as of September 30, 2019.

During the second quarter of 2018, the Company initiated a restructuring plan to manage and optimize capacity utilization, which included closing customer contact management centers and consolidating leased space in various locations in the U.S. and Canada (the “Americas 2018 Exit Plan”). The Company finalized the remainder of the site closures under the Americas 2018 Exit Plan as of December 2018, resulting in a reduction of 5,000 seats.

The Company’s actions under both the Americas 2018 and 2019 Exit Plans are anticipated to result in general and administrative cost savings and lower depreciation expense.

The cumulative costs expected and incurred to date related to cash and non-cash expenditures resulting from the Americas 2018 Exit Plan and the Americas 2019 Exit Plan are outlined below as of September 30, 2019 (in thousands):

 

 

Americas

2018 Exit Plan

 

 

Americas

2019 Exit Plan

 

Lease obligations and facility exit costs (1)

$

7,073

 

 

$

54

 

Severance and related costs (2)

 

3,426

 

 

 

191

 

Severance and related costs (1)

 

1,053

 

 

 

2,161

 

Non-cash impairment charges

 

5,875

 

 

 

1,582

 

Other non-cash charges

 

 

 

 

244

 

 

$

17,427

 

 

$

4,232

 

 

(1) Included in “General and administrative” costs.

(2) Included in “Direct salaries and related costs.

The Company has paid a total of $11.8 million in cash through September 30, 2019, of which $10.4 million related to the Americas 2018 Exit Plan and $1.4 million related to the Americas 2019 Exit Plan.  

The following table summarizes the accrued liability and related charges for the three months ended September 30, 2019 (in thousands):

 

Americas

2018 Exit Plan

 

 

Americas

2019 Exit Plan

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

Balance at the beginning of the period

$

129

 

 

$

222

 

 

$

351

 

 

$

54

 

 

$

1,561

 

 

$

1,615

 

Charges (reversals) included in "General

   and administrative"

 

 

 

 

8

 

 

 

8

 

 

 

 

 

 

(8

)

 

 

(8

)

Cash payments

 

(33

)

 

 

(129

)

 

 

(162

)

 

 

 

 

 

(649

)

 

 

(649

)

Balance at the end of the period

$

96

 

 

$

101

 

 

$

197

 

 

$

54

 

 

$

904

 

 

$

958

 

 

The following table summarizes the accrued liability and related charges for the three months ended September 30, 2018 (in thousands):

 

Americas

2018 Exit Plan

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

Balance at the beginning of the period

$

2,815

 

 

$

490

 

 

$

3,305

 

Charges (reversals) included in "Direct

   salaries and related costs"

 

 

 

 

3,015

 

 

 

3,015

 

Charges (reversals) included in "General

   and administrative"

 

3,832

 

 

 

331

 

 

 

4,163

 

Cash payments

 

(1,440

)

 

 

(3,209

)

 

 

(4,649

)

Balance sheet reclassifications (1)

 

119

 

 

 

 

 

 

119

 

Balance at the end of the period

$

5,326

 

 

$

627

 

 

$

5,953

 

 

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

 

The following table summarizes the accrued liability and related charges for the nine months ended September 30, 2019 (in thousands):

 

Americas

2018 Exit Plan

 

 

Americas

2019 Exit Plan

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

Balance at the beginning of the period

$

1,769

 

 

$

817

 

 

$

2,586

 

 

$

 

 

$

 

 

$

 

Charges (reversals) included in "Direct

   salaries and related costs"

 

 

 

 

(3

)

 

 

(3

)

 

 

 

 

 

191

 

 

 

191

 

Charges (reversals) included in "General

   and administrative"

 

(4

)

 

 

18

 

 

 

14

 

 

 

54

 

 

 

2,161

 

 

 

2,215

 

Cash payments

 

(331

)

 

 

(731

)

 

 

(1,062

)

 

 

 

 

 

(1,448

)

 

 

(1,448

)

Balance sheet reclassifications (1)

 

(1,338

)

 

 

 

 

 

(1,338

)

 

 

 

 

 

 

 

 

 

Balance at the end of the period

$

96

 

 

$

101

 

 

$

197

 

 

$

54

 

 

$

904

 

 

$

958

 

 

(1) Consists of the reclassification from the restructuring liability to “Operating lease liabilities” and “Long-term operating lease liabilities” upon adoption of ASC 842 on January 1, 2019.  

The following table summarizes the accrued liability and related charges for the nine months ended September 30, 2018 (in thousands):

 

Americas

2018 Exit Plan

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

Balance at the beginning of the period

$

 

 

$

 

 

$

 

Charges (reversals) included in "Direct

   salaries and related costs"

 

 

 

 

3,417

 

 

 

3,417

 

Charges (reversals) included in "General

   and administrative"

 

6,860

 

 

 

550

 

 

 

7,410

 

Cash payments

 

(1,869

)

 

 

(3,340

)

 

 

(5,209

)

Balance sheet reclassifications (1)

 

335

 

 

 

 

 

 

335

 

Balance at the end of the period

$

5,326

 

 

$

627

 

 

$

5,953

 

 

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

Restructuring Liability Classification

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with its Americas 2018 and 2019 Exit Plans (in thousands):

 

 

Americas

2018 Exit Plan

 

 

Americas

2019 Exit Plan

 

 

September 30, 2019

 

 

December 31, 2018

 

 

September 30, 2019

 

Lease obligations and facility exit costs:

 

 

 

 

 

 

 

 

 

 

 

Included in "Accounts payable"

$

 

 

$

100

 

 

$

54

 

Included in "Other accrued expenses and current

   liabilities"

 

55

 

 

 

952

 

 

 

 

Included in "Other long-term liabilities"

 

41

 

 

 

717

 

 

 

 

 

 

96

 

 

 

1,769

 

 

$

54

 

Severance and related costs:

 

 

 

 

 

 

 

 

 

 

 

Included in "Accrued employee compensation and

   benefits"

 

101

 

 

 

793

 

 

 

902

 

Included in "Other accrued expenses and current

   liabilities"

 

 

 

 

24

 

 

 

2

 

 

 

101

 

 

 

817

 

 

 

904

 

 

$

197

 

 

$

2,586

 

 

$

958

 

 

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

 

v3.19.3
Fair Value
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value

Note 5. 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.

 

Embedded Derivatives Prior to the adoption of ASC 842, the Company had embedded derivatives within certain hybrid lease agreements that were bifurcated from the host contract and valued such contracts at fair value using significant unobservable inputs, which are classified in Level 3 of the fair value hierarchy.  These unobservable inputs included expected cash flows associated with the lease, currency exchange rates on the day of commencement, as well as forward currency exchange rates, the results of which were adjusted for credit risk. These items were classified in Level 3 of the fair value hierarchy. See Note 3, Leases, and Note 7, Financial Derivatives, for further information.

 

Investments Held in Rabbi Trust The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 8, 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 consist of the following (in thousands):

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

September 30, 2019

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

2,576

 

 

$

 

 

$

2,576

 

 

$

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

8,305

 

 

 

8,305

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

4,712

 

 

 

4,712

 

 

 

 

 

 

 

 

$

15,593

 

 

$

13,017

 

 

$

2,576

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

425

 

 

$

 

 

$

425

 

 

$

 

 

$

425

 

 

$

 

 

$

425

 

 

$

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

December 31, 2018

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

1,068

 

 

$

 

 

$

1,068

 

 

$

 

Embedded derivatives (1)

 

10

 

 

 

 

 

 

 

 

 

10

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

8,075

 

 

 

8,075

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

3,367

 

 

 

3,367

 

 

 

 

 

 

 

 

$

12,520

 

 

$

11,442

 

 

$

1,068

 

 

$

10

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

2,895

 

 

$

 

 

$

2,895

 

 

$

 

Embedded derivatives (1)

 

369

 

 

 

 

 

 

 

 

 

369

 

 

$

3,264

 

 

$

 

 

$

2,895

 

 

$

369

 

 

(1) See Note 7, 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 8, Investments Held in Rabbi Trust.

 

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

 

Embedded Derivatives in Lease Agreements

 

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Balance at the beginning of the period

$

 

 

$

(598

)

 

$

(359

)

 

$

(527

)

Derecognition of embedded derivatives (1)

 

 

 

 

 

 

 

359

 

 

 

 

Gains (losses) recognized in "Other income

   (expense), net"

 

 

 

 

159

 

 

 

 

 

 

(6

)

Settlements

 

 

 

 

38

 

 

 

 

 

 

118

 

Effect of foreign currency

 

 

 

 

(1

)

 

 

 

 

 

13

 

Balance at the end of the period

$

 

 

$

(402

)

 

$

 

 

$

(402

)

Change in unrealized gains (losses) included in "Other

   income (expense), net" related to embedded

   derivatives held at the end of the period

$

 

 

$

153

 

 

$

 

 

$

(19

)

 

(1) Derecognition upon adoption of ASC 842 on January 1, 2019. See Note 3, Leases, for more information.  

 

Non-Recurring Fair Value

 

Certain assets, under certain conditions, are measured at fair value on a nonrecurring basis utilizing Level 3 inputs, including goodwill, intangible assets, long-lived assets, ROU assets and equity method investments. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if these assets were determined to be impaired. The adjusted carrying values for assets measured at fair value on a nonrecurring basis (no liabilities) subject to the requirements of ASC 820 were not material at September 30, 2019 and December 31, 2018.

 

The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) subject to the requirements of ASC 820 (in thousands):

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

$

 

 

$

(555

)

 

$

(343

)

 

$

(9,256

)

Operating lease right-of-use assets

 

 

 

 

 

 

 

(1,368

)

 

 

 

 

$

 

 

$

(555

)

 

$

(1,711

)

 

$

(9,256

)

 

In connection with the closure of certain under-utilized customer contact management centers and the consolidation of leased space in the U.S. and Canada, the Company recorded impairment charges during the three and nine months ended September 30, 2019 and 2018 related to the exit of leased facilities as well as leasehold improvements, equipment, furniture and fixtures which were not recoverable. See Note 4, Costs Associated with Exit and Disposal Activities, for further information.

v3.19.3
Goodwill and Intangible Assets
9 Months Ended
Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

Note 6. Goodwill and Intangible Assets

Intangible Assets

The following table presents the Company’s purchased intangible assets as of September 30, 2019 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

189,177

 

 

$

(117,027

)

 

$

72,150

 

 

 

10

 

Trade names and trademarks

 

19,093

 

 

 

(12,310

)

 

 

6,783

 

 

 

8

 

Non-compete agreements

 

2,714

 

 

 

(2,088

)

 

 

626

 

 

 

3

 

Content library

 

492

 

 

 

(492

)

 

 

 

 

 

2

 

Proprietary software

 

870

 

 

 

(660

)

 

 

210

 

 

 

5

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

80,710

 

 

 

 

 

 

80,710

 

 

N/A

 

 

$

293,056

 

 

$

(132,577

)

 

$

160,479

 

 

 

5

 

 

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

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

189,697

 

 

$

(106,502

)

 

$

83,195

 

 

 

10

 

Trade names and trademarks

 

19,236

 

 

 

(10,594

)

 

 

8,642

 

 

 

8

 

Non-compete agreements

 

2,746

 

 

 

(1,724

)

 

 

1,022

 

 

 

3

 

Content library

 

517

 

 

 

(517

)

 

 

 

 

 

2

 

Proprietary software

 

1,040

 

 

 

(725

)

 

 

315

 

 

 

4

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

80,857

 

 

 

 

 

 

80,857

 

 

N/A

 

 

$

294,093

 

 

$

(120,062

)

 

$

174,031

 

 

 

5

 

 

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to September 30, 2019 is as follows (in thousands):

 

 

Amount

 

2019 (remainder of the year)

$

4,054

 

2020

 

13,897

 

2021

 

9,312

 

2022

 

8,035

 

2023

 

7,205

 

2024

 

6,960

 

2025 and thereafter

 

30,306

 

 

Goodwill

Changes in goodwill for the nine months ended September 30, 2019 consisted of the following (in thousands):

 

 

January 1, 2019

 

 

Acquisition-

Related  (1)

 

 

Effect of

Foreign

Currency

 

 

September 30, 2019

 

Americas

$

255,436

 

 

$

1,202

 

 

$

1,799

 

 

$

258,437

 

EMEA

 

47,081

 

 

 

(124

)

 

 

(1,594

)

 

 

45,363

 

 

$

302,517

 

 

$

1,078

 

 

$

205

 

 

$

303,800

 

 

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

 

 

January 1, 2018

 

 

Acquisition-

Related  (1)

 

 

Effect of

Foreign

Currency

 

 

December 31, 2018

 

Americas

$

258,496

 

 

$

2,175

 

 

$

(5,235

)

 

$

255,436

 

EMEA

 

10,769

 

 

 

36,361

 

 

 

(49

)

 

 

47,081

 

 

$

269,265

 

 

$

38,536

 

 

$

(5,284

)

 

$

302,517

 

 

(1) See Note 1, Overview and Basis of Presentation, for further information. The year ended December 31, 2018 includes the goodwill recorded upon acquisition of WhistleOut and Symphony, while the nine months ended September 30, 2019 includes the impact of adjustments to acquired goodwill upon finalization of working capital adjustments and the tax analysis of WhistleOut’s assets acquired and liabilities assumed.

 

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, 2019.  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. 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, 2019, the Company had eight reporting units, seven of which have goodwill.  The Company concluded that goodwill was not impaired for all 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. The Clearlink, Symphony, LATAM and Qelp reporting units’ fair values exceeded their respective carrying values, although the fair value cushion was not substantial. The decrease in the Clearlink reporting unit’s cushion from the prior year was primarily attributable to a decrease in the projected long-term growth rate of the U.S. Gross Domestic Product as well as a decline in projected revenue growth. The decrease in the cushion from the prior year for the LATAM and Qelp reporting units was primarily attributable to an increase in the country-specific risk premiums which increased the applied weighted average cost of capital. Symphony was acquired by the Company in November 2018.

The Clearlink, Symphony, LATAM 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.  As of September 30, 2019, the Company believes there were no indicators of impairment related to Clearlink’s $74.1 million of goodwill, Symphony’s $35.7 million of goodwill, LATAM’s $19.2 million of goodwill and Qelp’s $9.7 million of goodwill.

v3.19.3
Financial Derivatives
9 Months Ended
Sep. 30, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Financial Derivatives

Note 7. 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):

 

 

September 30, 2019

 

 

December 31, 2018

 

Deferred gains (losses) in AOCI

$

1,553

 

 

$

(1,825

)

Tax on deferred gains (losses) in AOCI

 

(47

)

 

 

(39

)

Deferred gains (losses) in AOCI, net of taxes

$

1,506

 

 

$

(1,864

)

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

   from AOCI during the next twelve months

$

1,553

 

 

 

 

 

 

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 Forward Contracts The Company also periodically enters into foreign currency hedge contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against adverse foreign currency moves relating primarily to intercompany receivables and payables, and other assets and liabilities that are denominated in currencies other than the Company’s subsidiaries’ functional currencies.  

Embedded DerivativesThe Company enters into certain lease agreements which require payments not denominated in the functional currency of any substantial party to the agreements. Prior to the adoption of ASC 842 on January 1, 2019, the foreign currency component of these contracts met the criteria under ASC 815 as embedded derivatives. The Company has determined that the embedded derivatives were not clearly and closely related to the economic characteristics and risks of the host contracts (lease agreements), and separate, stand-alone instruments with the same terms as the embedded derivative instruments would otherwise qualify as derivative instruments, thereby requiring separation from the lease agreements and recognition at fair value. Such instruments did not qualify for hedge accounting under ASC 815. The Company’s embedded derivatives were derecognized on January 1, 2019.

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

 

 

September 30, 2019

 

 

December 31, 2018

 

Contract Type

Notional

Amount

in USD

 

 

Settle

Through

Date

 

 

Notional

Amount

in USD

 

 

Settle

Through

Date

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

$

77,000

 

 

September 2020

 

 

$

26,250

 

 

December 2019

 

Forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

 

 

 

 

 

 

 

39,000

 

 

September 2019

 

US Dollars/Costa Rican Colones

 

27,000

 

 

June 2020

 

 

 

67,000

 

 

December 2019

 

Euros/Hungarian Forints

 

752

 

 

December 2019

 

 

 

 

 

 

 

Euros/Romanian Leis

 

4,142

 

 

December 2019

 

 

 

 

 

 

 

Non-designated hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forwards

 

25,161

 

 

November 2021

 

 

 

19,261

 

 

November 2021

 

Embedded derivatives

 

 

 

 

 

 

 

14,069

 

 

April 2030

 

 

Master netting agreements exist with each respective counterparty to reduce credit risk by permitting net settlement of derivative positions. In the event of default by the Company or one of its counterparties, these agreements include a set-off clause that provides the non-defaulting party the right to net settle all derivative transactions, regardless of the currency and settlement date.  The maximum amount of loss due to credit risk that, based on gross fair value, the Company would incur if parties to the derivative transactions that make up the concentration failed to perform according to the terms of the contracts was $2.6 million and $1.1 million as of September 30, 2019 and December 31, 2018, 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 $2.4 million and $1.1 million as of September 30, 2019 and December 31, 2018, respectively, and liability positions of $0.2 million and $2.9 million as of September 30, 2019 and December 31, 2018, 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

 

September 30, 2019

 

 

December 31, 2018

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

$

2,358

 

 

$

1,038

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

 

81

 

 

 

30

 

Foreign currency contracts

 

Deferred charges and other assets

 

 

137

 

 

 

 

Embedded derivatives

 

Other current assets

 

 

 

 

 

10

 

Total derivative assets

 

 

 

$

2,576

 

 

$

1,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liabilities

 

 

 

Balance Sheet Location

 

September 30, 2019

 

 

December 31, 2018

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

$

28

 

 

$

2,604

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

 

397

 

 

 

247

 

Foreign currency contracts

 

Other long-term liabilities

 

 

 

 

 

44

 

Embedded derivatives

 

Other accrued expenses and current liabilities

 

 

 

 

 

8

 

Embedded derivatives

 

Other long-term liabilities

 

 

 

 

 

361

 

Total derivative liabilities

 

 

 

$

425

 

 

$

3,264

 

 

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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

(Losses) in Net Income

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues

 

 

 

$

397,547

 

 

$

399,333

 

 

$

1,189,478

 

 

$

1,210,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized in AOCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

 

 

 

(36

)

 

 

(1,839

)

 

 

4,733

 

 

 

(4,840

)

   Gains (losses) reclassified from AOCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

Revenues

 

 

1,134

 

 

 

183

 

 

 

1,264

 

 

 

619

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized from foreign

      currency contracts

 

Other income (expense), net

 

$

(363

)

 

$

(539

)

 

$

(828

)

 

$

(1,801

)

   Gains (losses) recognized from embedded

      derivatives

 

Other income (expense), net

 

 

 

 

 

159

 

 

 

 

 

 

(6

)

 

 

 

 

$

(363

)

 

$

(380

)

 

$

(828

)

 

$

(1,807

)

 

v3.19.3
Investments Held in Rabbi Trust
9 Months Ended
Sep. 30, 2019
Investments Debt And Equity Securities [Abstract]  
Investments Held in Rabbi Trust

Note 8.  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):

 

 

September 30, 2019

 

 

December 31, 2018

 

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

Mutual funds

$

9,455

 

 

$

13,017

 

 

$

8,864

 

 

$

11,442

 

 

The mutual funds held in rabbi trust were 64% equity-based and 36% debt-based as of September 30, 2019. 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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net realized gains (losses) from sale of trading securities

$

62

 

 

$

10

 

 

$

128

 

 

$

42

 

Dividend and interest income

 

35

 

 

 

31

 

 

 

117

 

 

 

99

 

Net unrealized holding gains (losses)

 

(56

)

 

 

366

 

 

 

1,402

 

 

 

383

 

 

$

41

 

 

$

407

 

 

$

1,647

 

 

$

524

 

 

v3.19.3
Borrowings
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Borrowings

Note 9. Borrowings

 

On February 14, 2019, the Company entered into a $500 million senior revolving credit facility (the “2019 Credit Agreement”) with a group of lenders, KeyBank National Association, as Administrative Agent, Swing Line Lender and Issuing Lender (“KeyBank”), the lenders named therein, and KeyBanc Capital Markets Inc. as Lead Arranger and Sole Book Runner. The 2019 Credit Agreement replaced the Company’s previous $440 million revolving credit facility dated May 12, 2015 (the “2015 Credit Agreement”), which agreement was terminated simultaneous with entering into the 2019 Credit Agreement. The 2019 Credit Agreement is subject to certain borrowing limitations and includes certain customary financial and restrictive covenants.

 

The 2019 Credit Agreement includes a $200 million alternate-currency sub-facility, a $15 million swingline sub-facility and a $15 million letter of credit sub-facility, and may be used for general corporate purposes including acquisitions, share repurchases, working capital support and letters of credit, subject to certain limitations. The Company is not currently aware of any inability of its lenders to provide access to the full commitment of funds that exist under the revolving credit facility, if necessary.  However, there can be no assurance that such facility will be available to the Company, even though it is a binding commitment of the financial institutions.

 

The 2019 Credit Agreement matures on February 14, 2024, and had outstanding borrowings of $77.0 million at September 30, 2019 and the 2015 Credit Agreement had outstanding borrowings of $102.0 million at December 31, 2018, included in “Long-term debt” in the accompanying Condensed Consolidated Balance Sheets.

 

Borrowings under the 2019 Credit Agreement bear interest at the rates set forth in the 2019 Credit Agreement. In addition, the Company is required to pay certain customary fees, including a commitment fee determined quarterly based on the Company’s leverage ratio and due quarterly in arrears as calculated on the average unused amount of the 2019 Credit Agreement.

 

The 2019 Credit Agreement is guaranteed by all the Company’s existing and future direct and indirect material U.S. subsidiaries and secured by a pledge of 100% of the non-voting and 65% of the voting capital stock of all the direct foreign subsidiaries of the Company and those of the guarantors.

 

In February 2019, the Company paid debt issuance costs of $1.1 million for the 2019 Credit Agreement, which is deferred and amortized over the term of the loan, along with the debt issuance costs of $0.3 million related to the 2015 Credit Agreement.

 

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Average daily utilization

$

91,935

 

 

$

101,087

 

 

$

92,495

 

 

$

107,454

 

Interest expense (1)

$

899

 

 

$

923

 

 

$

2,783

 

 

$

2,839

 

Weighted average interest rate (1)

 

3.9

%

 

 

3.6

%

 

 

4.0

%

 

 

3.6

%

 

(1) Excludes the amortization of deferred loan fees and includes the commitment fee.

 

In January 2018, the Company repaid $175.0 million of long-term debt outstanding under its 2015 Credit Agreement, primarily using funds repatriated from its foreign subsidiaries.

v3.19.3
Accumulated Other Comprehensive Income (Loss)
9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

Note 10. 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, 2018

$

(36,315

)

 

$

1,046

 

 

$

2,471

 

 

$

1,574

 

 

$

120

 

 

$

(31,104

)

Pre-tax amount

 

(22,158

)

 

 

 

 

 

(4,287

)

 

 

783

 

 

 

 

 

 

(25,662

)

Tax (provision) benefit

 

 

 

 

 

 

 

84

 

 

 

47

 

 

 

 

 

 

131

 

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

6

 

 

 

(66

)

 

 

(80

)

 

 

(140

)

Foreign currency translation

 

220

 

 

 

 

 

 

(138

)

 

 

(82

)

 

 

 

 

 

 

Balance at December 31, 2018

 

(58,253

)

 

 

1,046

 

 

 

(1,864

)

 

 

2,256

 

 

 

40

 

 

 

(56,775

)

Pre-tax amount

 

(7,048

)

 

 

 

 

 

4,733

 

 

 

 

 

 

 

 

 

(2,315

)

Tax (provision) benefit

 

 

 

 

 

 

 

(85

)

 

 

10

 

 

 

 

 

 

(75

)

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

(1,186

)

 

 

(72

)

 

 

(15

)

 

 

(1,273

)

Foreign currency translation

 

56

 

 

 

 

 

 

(92

)

 

 

36

 

 

 

 

 

 

 

Balance at September 30, 2019

$

(65,245

)

 

$

1,046

 

 

$

1,506

 

 

$

2,230

 

 

$

25

 

 

$

(60,438

)

 

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 September 30,

 

 

Nine Months Ended September 30,

 

 

Statements of

Operations

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

Location

Gain (loss) on cash flow hedging

   instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

$

1,134

 

 

$

183

 

 

$

1,264

 

 

$

619

 

 

Revenues

Tax (provision) benefit

 

(33

)

 

 

19

 

 

 

(78

)

 

 

43

 

 

Income taxes

Reclassification to net income

 

1,101

 

 

 

202

 

 

 

1,186

 

 

 

662

 

 

 

Actuarial gain (loss) related to

   pension liability: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

 

21

 

 

 

13

 

 

 

63

 

 

 

42

 

 

Other income (expense), net

Tax (provision) benefit

 

3

 

 

 

3

 

 

 

9

 

 

 

9

 

 

Income taxes

Reclassification to net income

 

24

 

 

 

16

 

 

 

72

 

 

 

51

 

 

 

Gain (loss) on postretirement

   obligation: (2),(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification to net income

 

5

 

 

 

84

 

 

 

15

 

 

 

104

 

 

Other income (expense), net

 

$

1,130

 

 

$

302

 

 

$

1,273

 

 

$

817

 

 

 

 

(1) See Note 7, Financial Derivatives, for further information.

(2) See Note 14, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

(3) No related tax (provision) benefit.

As discussed in Note 11, Income Taxes, for periods prior to December 31, 2017, any remaining outside basis differences associated with the Company’s investments in its foreign subsidiaries are considered to be indefinitely reinvested and no provision for income taxes on those earnings or translation adjustments has been provided.

v3.19.3
Income Taxes
9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

Note 11. Income Taxes

The Company’s effective tax rates were as follows:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Effective tax rate

 

23.9

%

 

 

4.4

%

 

 

23.8

%

 

 

2.6

%

The increase in the effective tax rate for the three months ended September 30, 2019 as compared to 2018 was primarily due to a $1.9 million reduction in discrete taxes related to the resolution of uncertain tax positions and ancillary issues in the prior period. The increase 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 increase in the effective tax rate for the nine months ended September 30, 2019 as compared to 2018 was primarily due to a $5.3 million reduction in discrete taxes from the aforementioned changes in uncertain tax positions, including the settlement of tax audits and ancillary issues in the prior period. The increase 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 2017 Tax Reform Act made significant changes to the Internal Revenue Code, including, but not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a participation exemption regime, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. The Company estimated its provision for income taxes in accordance with the 2017 Tax Reform Act and guidance available upon enactment, and as a result

recorded $32.7 million as additional income tax expense in the fourth quarter of 2017, the period in which the legislation was signed into law. The $32.7 million estimate included the provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings of $32.7 million based on cumulative foreign earnings of $531.8 million and $1.0 million of foreign withholding taxes on certain anticipated distributions. The provisional tax expense was partially offset by a provisional benefit of $1.0 million related to the remeasurement of certain deferred tax assets and liabilities, based on the rates at which they are expected to reverse in the future. The Company finalized the computation during the fourth quarter of 2018 and recorded a $0.2 million decrease during the year ended December 31, 2018 to the original provisional amount recorded.

Prior to December 31, 2017, no additional income taxes have been provided for any remaining outside basis differences inherent in the Company’s investments in its foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any remaining outside basis difference in these entities is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates.

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

The Company has no significant tax jurisdictions under audit; however, the Company is currently under audit in several tax jurisdictions. The Company believes it has adequate reserves related to all matters pertaining to the remaining 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.

v3.19.3
Earnings Per Share
9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share

Note 12. 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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

41,190

 

 

 

42,136

 

 

 

41,808

 

 

 

42,070

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of stock appreciation rights, restricted

   stock, restricted stock units and shares held in

   rabbi trust

 

117

 

 

 

68

 

 

 

100

 

 

 

131

 

Total weighted average diluted shares outstanding

 

41,307

 

 

 

42,204

 

 

 

41,908

 

 

 

42,201

 

Anti-dilutive shares excluded from the diluted earnings

   per share calculation

 

52

 

 

 

23

 

 

 

174

 

 

 

11

 

 

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 6.4 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 2018) (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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

369

 

 

$

26.81

 

 

$

28.00

 

 

$

10,103

 

Nine Months Ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

1,140

 

 

$

24.72

 

 

$

28.00

 

 

$

30,281

 

 

v3.19.3
Commitments and Loss Contingency
9 Months Ended
Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Loss Contingency

Note 13. Commitments and Loss Contingency

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 Contingency

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

The Company received a state audit assessment and is currently rebutting the position. The Company has determined that the likelihood of a liability is reasonably possible and developed a range of possible loss up to $1.5 million, net of federal benefit.

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.  

v3.19.3
Defined Benefit Pension Plan and Postretirement Benefits
9 Months Ended
Sep. 30, 2019
Compensation And Retirement Disclosure [Abstract]  
Defined Benefit Pension Plan and Postretirement Benefits

Note 14. 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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

$

98

 

 

$

106

 

 

$

296

 

 

$

329

 

Interest cost

 

62

 

 

 

46

 

 

 

186

 

 

 

144

 

Recognized actuarial (gains)

 

(21

)

 

 

(13

)

 

 

(63

)

 

 

(42

)

 

$

139

 

 

$

139

 

 

$

419

 

 

$

431

 

 

The Company’s service cost for its qualified pension plans was included in “Direct salaries and related costs” and “General and administrative” costs in its Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 3019 and 2018. The remaining components of net periodic benefit cost were included in “Other income (expense), net” in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018.

Employee Retirement Savings Plans

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

401(k) plan contributions

$

410

 

 

$

392

 

 

$

1,295

 

 

$

1,195

 

 

Split-Dollar Life Insurance Arrangement

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

 

 

September 30, 2019

 

 

December 31, 2018

 

Postretirement benefit obligation

$

6

 

 

$

12

 

Unrealized gains (losses) in AOCI (1)

 

25

 

 

 

40

 

 

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

v3.19.3
Stock-Based Compensation
9 Months Ended
Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

Note 15. Stock-Based Compensation

The Company’s Board of Directors adopted the Sykes Enterprises, Incorporated 2019 Equity Incentive Plan (the “2019 Plan”) on March 12, 2019. The 2019 Plan was approved by the shareholders at the May 2019 annual shareholder meeting. The 2019 Plan replaced and superseded the Company’s 2011 Equity Incentive Plan (the “2011 Plan”). The outstanding awards granted under the 2011 Plan will remain in effect until their exercise, expiration or termination. The 2019 Plan permits the grant of restricted stock, stock appreciation rights, stock options and other stock-based awards to certain employees of, and certain non-employees who provide services to, the Company in order to encourage them to remain in the employment of, or to faithfully provide services to, the Company and to increase their interest in the Company’s success.  

The Company’s stock-based compensation plans include the 2019 Plan for employees and certain non-employees, the Non-Employee Director Fee Plan for non-employee directors and the Deferred Compensation Plan for certain eligible employees. Stock-based awards under these plans may consist of common stock, stock options, cash-settled or stock-settled stock appreciation rights, restricted stock and other stock-based awards.  The Company issues stock and uses treasury stock to satisfy stock option exercises or vesting stock awards. The methods and assumptions used in the determination of the fair value of stock-based awards are consistent with those described in the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Stock-based compensation (expense) (1)

$

(1,504

)

 

$

(1,567

)

 

$

(5,594

)

 

$

(5,317

)

Income tax benefit (2)

 

361

 

 

 

376

 

 

 

1,343

 

 

 

1,276

 

 

(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 nine months ended September 30, 2019, the Company granted 338,732 performance-based restricted shares and 169,367 employment-based restricted stock units under the Company’s 2011 Plan, all at a weighted average grant-date fair value of $28.43 per share.

During the three and nine months ended September 30, 2019, the Company accelerated the vesting of 35,577 acquisition-related restricted stock units in conjunction with the departure of one of Symphony’s executives from the Company. The fair value of the vested restricted stock units was $1.1 million.

v3.19.3
Segments and Geographic Information
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segments and Geographic Information

Note 16. Segments and Geographic Information

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

The reportable segments consist of (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, and provides outsourced customer engagement solutions (with an emphasis on inbound 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 engagement solutions (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 engagement needs.  

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

 

 

Americas

 

 

EMEA

 

 

Other (1)

 

 

Consolidated

 

Three Months Ended September 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

318,097

 

 

$

79,427

 

 

$

23

 

 

$

397,547

 

Percentage of revenues

 

80.0

%

 

 

20.0

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

10,086

 

 

$

1,611

 

 

$

752

 

 

$

12,449

 

Amortization of intangibles

$

3,289

 

 

$

814

 

 

$

 

 

$

4,103

 

Income (loss) from operations

$

34,516

 

 

$

5,688

 

 

$

(15,498

)

 

$

24,706

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(912

)

 

 

(912

)

Income taxes

 

 

 

 

 

 

 

 

 

(5,689

)

 

 

(5,689

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

18,105

 

Three Months Ended September 30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

328,762

 

 

$

70,543

 

 

$

28

 

 

$

399,333

 

Percentage of revenues

 

82.3

%

 

 

17.7

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

11,838

 

 

$

1,473

 

 

$

761

 

 

$

14,072

 

Amortization of intangibles

$

3,439

 

 

$

199

 

 

$

 

 

$

3,638

 

Income (loss) from operations

$

25,666

 

 

$

5,098

 

 

$

(16,318

)

 

$

14,446

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(66

)

 

 

(66

)

Income taxes

 

 

 

 

 

 

 

 

 

(628

)

 

 

(628

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

13,752

 

Nine Months Ended September 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

953,181

 

 

$

236,231

 

 

$

66

 

 

$

1,189,478

 

Percentage of revenues

 

80.1

%

 

 

19.9

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

32,252

 

 

$

4,865

 

 

$

2,281

 

 

$

39,398

 

Amortization of intangibles

$

10,015

 

 

$

2,501

 

 

$

 

 

$

12,516

 

Income (loss) from operations

$

91,168

 

 

$

11,840

 

 

$

(46,295

)

 

$

56,713

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(2,815

)

 

 

(2,815

)

Income taxes

 

 

 

 

 

 

 

 

 

(12,837

)

 

 

(12,837

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

41,061

 

Nine Months Ended September 30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

996,524

 

 

$

213,890

 

 

$

75

 

 

$

1,210,489

 

Percentage of revenues

 

82.3

%

 

 

17.7

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

36,856

 

 

$

4,360

 

 

$

2,252

 

 

$

43,468

 

Amortization of intangibles

$

10,846

 

 

$

634

 

 

$

 

 

$

11,480

 

Income (loss) from operations

$

71,354

 

 

$

11,957

 

 

$

(48,121

)

 

$

35,190

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(2,457

)

 

 

(2,457

)

Income taxes

 

 

 

 

 

 

 

 

 

(855

)

 

 

(855

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

31,878

 

 

(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 geographic location and by the reportable segment for each category (in thousands):

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

$

144,698

 

 

$

161,429

 

 

$

451,466

 

 

$

498,523

 

The Philippines

 

65,560

 

 

 

57,953

 

 

 

180,431

 

 

 

174,610

 

Costa Rica

 

31,228

 

 

 

33,120

 

 

 

93,524

 

 

 

96,168

 

Canada

 

24,815

 

 

 

25,549

 

 

 

74,885

 

 

 

77,566

 

El Salvador

 

20,904

 

 

 

20,732

 

 

 

61,447

 

 

 

61,327

 

People's Republic of China

 

8,681

 

 

 

8,337

 

 

 

26,489

 

 

 

25,834

 

Australia

 

7,425

 

 

 

8,619

 

 

 

22,382

 

 

 

24,021

 

Mexico

 

7,016

 

 

 

6,221

 

 

 

20,648

 

 

 

18,171

 

Colombia

 

4,513

 

 

 

4,704

 

 

 

13,957

 

 

 

13,395

 

Other

 

3,257

 

 

 

2,098

 

 

 

7,952

 

 

 

6,909

 

Total Americas

 

318,097

 

 

 

328,762

 

 

 

953,181

 

 

 

996,524

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

23,471

 

 

 

22,448

 

 

 

70,148

 

 

 

69,027

 

United Kingdom

 

18,141

 

 

 

12,333

 

 

 

52,759

 

 

 

37,640

 

Sweden

 

12,850

 

 

 

13,422

 

 

 

39,891

 

 

 

41,226

 

Romania

 

8,457

 

 

 

8,704

 

 

 

24,850

 

 

 

25,031

 

Other

 

16,508

 

 

 

13,636

 

 

 

48,583

 

 

 

40,966

 

Total EMEA

 

79,427

 

 

 

70,543

 

 

 

236,231

 

 

 

213,890

 

Total Other

 

23

 

 

 

28

 

 

 

66

 

 

 

75

 

 

$

397,547

 

 

$

399,333

 

 

$

1,189,478

 

 

$

1,210,489

 

 

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

v3.19.3
Other Income (Expense)
9 Months Ended
Sep. 30, 2019
Other Income And Expenses [Abstract]  
Other Income (Expense)

Note 17. Other Income (Expense)

 

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Foreign currency transaction gains (losses)

$

430

 

 

$

1,066

 

 

$

(107

)

 

$

3,155

 

Gains (losses) on derivative instruments not designated as hedges

 

(363

)

 

 

(380

)

 

 

(828

)

 

 

(1,807

)

Net investment gains (losses) on investments held in rabbi trust

 

41

 

 

 

407

 

 

 

1,647

 

 

 

524

 

Other miscellaneous income (expense)

 

(163

)

 

 

(174

)

 

 

(690

)

 

 

(1,335

)

 

$

(55

)

 

$

919

 

 

$

22

 

 

$

537

 

 

v3.19.3
Related Party Transactions
9 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

Note 18. Related Party Transactions

In January 2008, the Company entered into a lease for a customer engagement center located in Kingstree, South Carolina. The landlord, Kingstree Office One, LLC, is an entity controlled by John H. Sykes, the founder, former Chairman and former Chief Executive Officer of the Company and the father of Charles Sykes, President and Chief Executive Officer of the Company. The lease payments on the 20-year lease were negotiated at or below market rates, and the lease is cancellable at the option of the Company. The Company paid $0.1 million to the landlord during both the three months ended September 30, 2019 and 2018 under the terms of the lease.  The Company paid $0.4 million and $0.3 million during the nine months ended September 30, 2019 and 2018, respectively.

The Company contracted to receive services from XSell, an equity method investee, for $0.1 million during the three months ended September 30, 2018 (none in 2019), and less than $0.1 million and $0.1 million during the nine months ended September 30, 2019 and 2018, respectively.  These related party transactions occurred in the normal course of business on terms and conditions that are similar to those of transactions with unrelated parties and, therefore, were measured at the exchange amount.

v3.19.3
Subsequent Event
9 Months Ended
Sep. 30, 2019
Subsequent Events [Abstract]  
Subsequent Event

Note 19. Subsequent Event

In May 2019, the building that houses the Company’s customer engagement center located in Fort Smith, Arkansas experienced significant damage as a result of a tornado, primarily impacting its leasehold improvements and other fixed assets, and causing an interruption in its business operations. The Company filed an insurance claim of $2.9 million with its property insurance company. The Company settled the claim with its insurance company on November 5, 2019.  The Company expects to recognize a gain on settlement of the insurance claim in the range of $0.8 million to $1.3 million during the fourth quarter of 2019. This gain was offset by costs recognized in previous quarters not covered by the insurance claim.

v3.19.3
Overview and Basis of Presentation (Policies)
9 Months Ended
Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Business

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

U.S. 2017 Tax Reform Act

On December 20, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Reform Act”) was approved by Congress and received presidential approval on December 22, 2017. In general, the 2017 Tax Reform Act reduced the U.S. federal corporate tax rate from 35% to 21%, effective in 2018. The 2017 Tax Reform Act moved from a worldwide business taxation approach to a participation exemption regime. The 2017 Tax Reform Act also imposed base-erosion prevention measures on non-U.S. earnings of U.S. entities, as well as a one-time mandatory deemed repatriation tax on accumulated non-U.S. earnings. The impact of the 2017 Tax Reform Act on the Company’s consolidated financial results began with the fourth quarter of 2017, the period of enactment. See Note 11, Income Taxes, for further information.

Acquisitions

Symphony Acquisition

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

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

The aggregate purchase price was GBP 52.5 million ($67.6 million), subject to a post-closing working capital adjustment, of which the Company paid GBP 44.6 million ($57.6 million) at the closing of the transaction on November 1, 2018 using cash on hand as well as $31.0 million of additional borrowings under the Company’s credit agreement. The acquisition date present value of the remaining GBP 7.9 million ($10.0 million) of purchase price has been deferred and is payable in equal installments over three years, on or around November 1, 2019, 2020 and 2021. The Symphony Purchase Agreement also provides for a three-year, retention based earnout payable in restricted stock units (“RSUs”) with a value of GBP 3.0 million. The Symphony Purchase Agreement contains customary representations and warranties, indemnification obligations and covenants.

Subsequent to the finalization of the working capital adjustments during the quarter ended March 31, 2019, the purchase price was adjusted to GBP 52.4 million ($67.5 million). The acquisition resulted in $26.1 million of intangible assets, primarily customer relationships and trade names, $2.2 million of fixed assets and $36.2 million of goodwill.  

The Company accounted for the Symphony acquisition in accordance with Accounting Standards Codification (“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 will complete its analysis of the purchase price allocation in the fourth quarter of 2019 and any resulting adjustments will be recorded in accordance with ASC 805.

WhistleOut Acquisition

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

The aggregate purchase price of AUD 30.2 million ($22.4 million) was paid at the closing of the transaction on July 9, 2018. Subsequent to the finalization of the working capital adjustments during the quarter ended March 31, 2019, the purchase price was adjusted to AUD 30.3 million ($22.5 million). The purchase price was funded through $22.0 million of additional borrowings under the Company’s credit agreement. The WhistleOut Sale Agreement provides for a three-year, retention based earnout of AUD 14.0 million payable in three installments on or about July 1, 2019, 2020 and 2021.  The Company paid the first installment of the earn-out of AUD 6.0 million ($4.2 million) in July 2019.

The Company accounted for the WhistleOut acquisition in accordance with ASC 805, whereby the purchase price paid was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the closing date. The Company completed its tax analysis of the assets acquired and liabilities assumed during the second quarter of 2019, which resulted in deferred tax assets and liabilities in accordance with ASC 805. The final purchase price allocation resulted in $16.5 million of intangible assets, primarily indefinite-lived domain names, $2.4 million of fixed assets and $3.3 million of goodwill.

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 and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2019. 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, 2018, as filed with the Securities and Exchange Commission (“SEC”) on February 26, 2019.

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.

Subsequent Events

Subsequent Events Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. On November 5, 2019, the Company settled an insurance claim related to damage to its customer engagement center located in Fort Smith, Arkansas. See Note 19, Subsequent Event, for further information. There were no other 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):

 

 

September 30, 2019

 

 

December 31, 2018

 

 

September 30, 2018

 

 

December 31, 2017

 

Cash and cash equivalents

$

142,572

 

 

$

128,697

 

 

$

157,268

 

 

$

343,734

 

Restricted cash included in "Other current assets"

 

563

 

 

 

149

 

 

 

158

 

 

 

154

 

Restricted cash included in "Deferred charges and

   other assets"

 

1,432

 

 

 

1,385

 

 

 

893

 

 

 

917

 

 

$

144,567

 

 

$

130,231

 

 

$

158,319

 

 

$

344,805

 

Investments in Equity Method Investees

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

The Company’s net investment in XSell of $8.8 million and $9.2 million was included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018, respectively.  The Company’s investment was paid in two installments of $5.0 million, one in July 2017 and one in August 2018. The Company’s proportionate share of XSell’s net (loss) of $(0.1) million and $(0.2) million for the three months ended September 30, 2019 and 2018, respectively, and $(0.3) million and $(0.4) million for the nine months ended September 30, 2019 and 2018, respectively, was included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations.

As of September 30, 2019 and December 31, 2018, the Company did not identify any instances where the carrying values of its equity method investments were not recoverable.

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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Customer-acquisition advertising costs

$

11,188

 

 

$

13,907

 

 

$

33,328

 

 

$

35,835

 

 

Reclassifications

Reclassifications — Certain balances in the prior period have been reclassified to conform to current period presentation.  

New Accounting Standards Not Yet Adopted

New Accounting Standards Not Yet Adopted

Fair Value Measurements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). These amendments remove, modify or add certain disclosure requirements for fair value measurements.  These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Certain of the amendments will be applied

prospectively in the initial year of adoption while the remainder are required to be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. The Company does not expect its adoption of ASU 2018-13 to have a material impact on its disclosures and does not expect to early adopt the standard.

Retirement Benefits

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

Cloud Computing

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

Financial Instruments – Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). These amendments require measurement and recognition of expected versus incurred credit losses for financial assets held. Entities are required to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts.  Subsequently, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses in November 2018 and ASU 2019-05, Financial Instruments – Credit Losses (Topic 326) Targeted Transition Relief in May 2019 (together, “subsequent amendments”). ASU 2016-13 and the subsequent amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted.

The Company’s implementation team is substantially complete with the assessment of its data and the design of its financial models to estimate expected credit losses and continues to evaluate the critical factors of ASU 2016-13 to determine its impact on the Company’s business processes, systems, and internal controls. The Company expects ASU 2016-13 to apply to its trade receivables but does not expect the adoption of the amendments to have a material impact on its financial condition, results of operations or cash flows because credit losses associated with trade receivables have historically been insignificant. The adoption of ASU 2016-13 will require expanded quantitative and qualitative disclosures about the Company’s expected credit losses. Additionally, the Company does not anticipate early adopting ASU 2016-13.

Codification Improvements – Financial Instruments – Credit Losses, Derivatives and Hedging, and Financial Instruments

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”). These amendments clarify new standards on credit losses, hedging and recognizing and measuring financial instruments and address implementation issues stakeholders have raised. The credit losses and hedging amendments have the same effective dates as the respective standards, unless an entity has already adopted the standards. The amendments related to recognizing and measuring financial instruments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2019-04 to have a material impact on its financial condition, results of operations, cash flows or disclosures.

New Accounting Standards Recently Adopted

New Accounting Standards Recently Adopted

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”) and subsequent amendments (together, “ASC 842”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under ASC 840, Leases (“ASC 840”). These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted.  Entities have the option to either apply the amendments (1) at the beginning of the earliest period presented using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements or (2) at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without the need to restate prior periods. There are also certain optional practical expedients that an entity may elect to apply. The Company adopted ASC 842 as of January 1, 2019 using a modified retrospective transition, with the cumulative-effect adjustment to the opening balance of retained earnings as of the effective date. Periods prior to January 1, 2019 have not been restated.  

See Note 3, Leases, for further details as well as the Company’s significant accounting policy for leases.

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedge Activities (“ASU 2017-12”). These amendments help simplify certain aspects of hedge accounting and better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results.  For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively.  These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update.  The adoption of ASU 2017-12 on January 1, 2019 did not have a material impact on the financial condition, results of operations, cash flows or disclosures of the Company.  No cumulative-effect adjustment was recorded to opening retained earnings on the date of adoption as there was no ineffectiveness previously recorded in retained earnings that would have been included in other comprehensive income if the new guidance had been applied since hedge inception. Upon adoption of ASU 2017-12, the Company elected the spot method for assessing the effectiveness of net investment hedges and will record the amortization of excluded components of net investment hedges in “Other income (expense), net” in its consolidated financial statements. 

Revenue from Contracts with Customers

Revenue from Contracts with Customers

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

Deferred Revenue

 

The Company receives up-front fees in connection with certain contracts. In accordance with ASC 606, the up-front fees are recorded as a contract liability only to the extent a legally enforceable contract exists.  Accordingly, the up-front fees allocated to a contract’s termination notification period, typically varying periods up to 180 days, are recorded as deferred revenue, while the fees that extend beyond the notification period are classified as customer arrangements with termination rights.

 

Revenues of $0.2 million and $0.1 million were recognized during the three months ended September 30, 2019 and 2018, respectively, and revenues of $3.6 million and $4.3 million were recognized during the nine months ended September 30, 2019 and 2018, respectively, from amounts included in deferred revenue at December 31, 2018 and January 1, 2018, respectively.  The Company expects to recognize the majority of its deferred revenue as of September 30, 2019 over the next 180 days.

 

Customer Liabilities – Customer Arrangements with Termination Rights

 

The majority of the Company’s contracts include termination for convenience or without cause provisions allowing either party to cancel the contract without substantial cost or penalty within a defined notification period (“termination rights”). Customer arrangements with termination rights represent the amount of up-front fees received for unsatisfied performance obligations for periods that extend beyond the legally enforceable contract period. All customer arrangements with termination rights are classified as current as the customer can terminate the contracts and demand pro-rata refunds of the up-front fees over varying periods, typically up to 180 days. The Company expects to recognize the majority of the customer arrangements with termination rights into revenue as the Company has not historically experienced a high rate of early contract terminations.

 

Customer Liabilities – Estimated Refund Liabilities

 

Estimated refund liabilities represent consideration received under the contract that the Company expects to ultimately refund to the customer and primarily relates to estimated penalties, holdbacks and chargebacks.  Penalties and holdbacks result from the failure to meet specified minimum service levels in certain contracts and other performance-based contingencies.  Chargebacks reflect the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred. Estimated refund liabilities are generally resolved in 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency.

Leases

Accounting Policy

In determining whether a contract contains a lease, the Company assesses whether the arrangement meets all three of the following criteria: 1) there is an identified asset; 2) the Company has the right to obtain substantially all the economic benefits from use of the identified asset; and 3) the Company has the right to direct the use of the identified asset. This involves evaluating whether the Company has the right to operate the asset or to direct others to operate the asset in a manner that it determines without the supplier having the right to change those operating instructions, as well as evaluating the Company’s involvement in the design of the asset.

The Company capitalizes operating lease obligations with initial terms in excess of 12 months as ROU assets with corresponding lease liabilities on its balance sheet.  Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Additionally, the ROU asset is adjusted for lease incentives, prepaid lease payments and initial direct costs. Operating lease expense is recognized on a straight-line basis over the lease term.

The Company has lease agreements with lease and non-lease components, such as real estate taxes, insurance, common area maintenance and other operating costs.  Lease and non-lease components are generally accounted for as a single component to the extent that the costs are fixed per the arrangement. The Company has applied this accounting policy to all asset classes. To the extent that the non-lease components are not fixed per the arrangement, these costs are treated as variable lease costs and expensed as incurred.  

Certain of the Company’s lease agreements include rental payments that adjust periodically based on an index or rate, generally the applicable Consumer Price Index (“CPI”). The operating lease liability is measured using the prevailing index or rate at the measurement date (i.e., the commencement date); however, the most recent CPI in effect as of January 1, 2019 was used to effectuate the adoption of ASC 842. Incremental payments due to changes to the index- and rate-based lease payments are treated as variable lease costs and expensed as incurred.  

For purposes of calculating operating lease liabilities, the lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The primary factors used to estimate whether an option to extend a lease term will be exercised or not generally include the extent of the Company’s capital investment, employee recruitment potential and operational cost and flexibility.

In determining the present value of lease payments, the Company typically uses incremental borrowing rates based on information available at the lease commencement date. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s incremental borrowing rate is estimated using a synthetic credit rating model and forward currency exchange rates, as applicable.  

Payments on leases with an initial term of 12 months or less are recognized in the accompanying Condensed Consolidated Statements of Operations on a straight-line basis over the lease term.

The ROU asset is evaluated for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, Property, Plant and Equipment. A loss is recognized when the ROU asset is impaired in connection with the impairment of a site’s assets due to economic or other factors.  When the ROU asset is impaired, it is typically amortized on a straight-line basis over the shorter of the remaining lease term or its useful life, and the related operating lease would no longer qualify for straight-line treatment of total lease expense.  

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.

 

Embedded Derivatives Prior to the adoption of ASC 842, the Company had embedded derivatives within certain hybrid lease agreements that were bifurcated from the host contract and valued such contracts at fair value using significant unobservable inputs, which are classified in Level 3 of the fair value hierarchy.  These unobservable inputs included expected cash flows associated with the lease, currency exchange rates on the day of commencement, as well as forward currency exchange rates, the results of which were adjusted for credit risk. These items were classified in Level 3 of the fair value hierarchy. See Note 3, Leases, and Note 7, Financial Derivatives, for further information.

 

Investments Held in Rabbi Trust The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 8, 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.

v3.19.3
Overview and Basis of Presentation (Tables)
9 Months Ended
Sep. 30, 2019
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):

 

 

September 30, 2019

 

 

December 31, 2018

 

 

September 30, 2018

 

 

December 31, 2017

 

Cash and cash equivalents

$

142,572

 

 

$

128,697

 

 

$

157,268

 

 

$

343,734

 

Restricted cash included in "Other current assets"

 

563

 

 

 

149

 

 

 

158

 

 

 

154

 

Restricted cash included in "Deferred charges and

   other assets"

 

1,432

 

 

 

1,385

 

 

 

893

 

 

 

917

 

 

$

144,567

 

 

$

130,231

 

 

$

158,319

 

 

$

344,805

 

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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Customer-acquisition advertising costs

$

11,188

 

 

$

13,907

 

 

$

33,328

 

 

$

35,835

 

 

v3.19.3
Revenues (Tables)
9 Months Ended
Sep. 30, 2019
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 (in thousands):

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

$

317,806

 

 

$

328,535

 

 

$

952,438

 

 

$

995,723

 

Other revenues

 

291

 

 

 

227

 

 

 

743

 

 

 

801

 

Total Americas

 

318,097

 

 

 

328,762

 

 

 

953,181

 

 

 

996,524

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

 

69,329

 

 

 

68,859

 

 

 

208,969

 

 

 

208,302

 

Other revenues

 

10,098

 

 

 

1,684

 

 

 

27,262

 

 

 

5,588

 

Total EMEA

 

79,427

 

 

 

70,543

 

 

 

236,231

 

 

 

213,890

 

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

23

 

 

 

28

 

 

 

66

 

 

 

75

 

Total Other

 

23

 

 

 

28

 

 

 

66

 

 

 

75

 

 

$

397,547

 

 

$

399,333

 

 

$

1,189,478

 

 

$

1,210,489

 

Receivables, Net

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

 

 

September 30, 2019

 

 

December 31, 2018

 

Trade accounts receivable, net, current (1)

$

340,520

 

 

$

335,377

 

Trade accounts receivable, net, noncurrent (2)

 

19,457

 

 

 

15,948

 

 

$

359,977

 

 

$

351,325

 

 

(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 consists of the following (in thousands):

 

 

September 30, 2019

 

 

December 31, 2018

 

Deferred revenue

$

3,691

 

 

$

3,655

 

Customer arrangements with termination rights

 

15,891

 

 

 

16,404

 

Estimated refund liabilities

 

9,324

 

 

 

10,117

 

 

$

28,906

 

 

$

30,176

 

 

v3.19.3
Leases (Tables)
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Schedule of Lease

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense were as follows (in thousands):

 

Statement of Operations Location

 

Three Months Ended September 30, 2019

 

 

Nine Months Ended September 30, 2019

 

Operating lease cost

Direct salaries and related costs

 

$

37

 

 

$

170

 

Operating lease cost

General and administrative

 

 

14,645

 

 

 

44,460

 

Short-term lease cost

General and administrative

 

 

970

 

 

 

1,783

 

Variable lease cost

Direct salaries and related costs

 

 

 

 

 

(1

)

Variable lease cost

General and administrative

 

 

1,116

 

 

 

3,426

 

Sublease income

General and administrative

 

 

(870

)

 

 

(1,867

)

 

 

 

$

15,898

 

 

$

47,971

 

Supplemental cash flow information related to leases was as follows (in thousands):

 

Nine Months Ended September 30, 2019

 

Cash paid for amounts included in the measurement of operating lease liabilities - operating

   cash flows

$

43,387

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

18,447

 

 

Additional supplemental information related to leases was as follows:

 

September 30, 2019

 

Weighted average remaining lease term of operating leases

5.4 years

 

Weighted average discount rate of operating leases

 

3.7

%

Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of September 30, 2019 were as follows (in thousands):

 

Amount

 

2019 (remainder of the year)

$

10,767

 

2020

 

57,324

 

2021

 

51,118

 

2022

 

39,370

 

2023

 

25,829

 

2024 and thereafter

 

55,475

 

Total future lease payments

 

239,883

 

Less: Imputed interest

 

23,552

 

Present value of future lease payments

 

216,331

 

Less: Operating lease liabilities

 

48,323

 

Long-term operating lease liabilities

$

168,008

 

Schedule of Future Minimum Rental Payments for Operating Leases under ASC 840

The following is a schedule of future minimum rental payments required under operating leases that had noncancelable lease terms as of December 31, 2018 under ASC 840 (in thousands):

 

Amount

 

2019

$

53,071

 

2020

 

48,770

 

2021

 

43,324

 

2022

 

34,063

 

2023

 

22,583

 

2024 and thereafter

 

51,456

 

 

$

253,267

 

v3.19.3
Costs Associated with Exit or Disposal Activities (Tables)
9 Months Ended
Sep. 30, 2019
Restructuring And Related Activities [Abstract]  
Cumulative Costs Expected and Incurred to Date Related to Cash and Non-Cash Expenditures Resulting from Exit Plan

The cumulative costs expected and incurred to date related to cash and non-cash expenditures resulting from the Americas 2018 Exit Plan and the Americas 2019 Exit Plan are outlined below as of September 30, 2019 (in thousands):

 

 

Americas

2018 Exit Plan

 

 

Americas

2019 Exit Plan

 

Lease obligations and facility exit costs (1)

$

7,073

 

 

$

54

 

Severance and related costs (2)

 

3,426

 

 

 

191

 

Severance and related costs (1)

 

1,053

 

 

 

2,161

 

Non-cash impairment charges

 

5,875

 

 

 

1,582

 

Other non-cash charges

 

 

 

 

244

 

 

$

17,427

 

 

$

4,232

 

 

(1) Included in “General and administrative” costs.

(2) Included in “Direct salaries and related costs.

Summary of Accrued Liability and Related Charges

The following table summarizes the accrued liability and related charges for the three months ended September 30, 2019 (in thousands):

 

Americas

2018 Exit Plan

 

 

Americas

2019 Exit Plan

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

Balance at the beginning of the period

$

129

 

 

$

222

 

 

$

351

 

 

$

54

 

 

$

1,561

 

 

$

1,615

 

Charges (reversals) included in "General

   and administrative"

 

 

 

 

8

 

 

 

8

 

 

 

 

 

 

(8

)

 

 

(8

)

Cash payments

 

(33

)

 

 

(129

)

 

 

(162

)

 

 

 

 

 

(649

)

 

 

(649

)

Balance at the end of the period

$

96

 

 

$

101

 

 

$

197

 

 

$

54

 

 

$

904

 

 

$

958

 

 

The following table summarizes the accrued liability and related charges for the three months ended September 30, 2018 (in thousands):

 

Americas

2018 Exit Plan

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

Balance at the beginning of the period

$

2,815

 

 

$

490

 

 

$

3,305

 

Charges (reversals) included in "Direct

   salaries and related costs"

 

 

 

 

3,015

 

 

 

3,015

 

Charges (reversals) included in "General

   and administrative"

 

3,832

 

 

 

331

 

 

 

4,163

 

Cash payments

 

(1,440

)

 

 

(3,209

)

 

 

(4,649

)

Balance sheet reclassifications (1)

 

119

 

 

 

 

 

 

119

 

Balance at the end of the period

$

5,326

 

 

$

627

 

 

$

5,953

 

 

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

 

The following table summarizes the accrued liability and related charges for the nine months ended September 30, 2019 (in thousands):

 

Americas

2018 Exit Plan

 

 

Americas

2019 Exit Plan

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

Balance at the beginning of the period

$

1,769

 

 

$

817

 

 

$

2,586

 

 

$

 

 

$

 

 

$

 

Charges (reversals) included in "Direct

   salaries and related costs"

 

 

 

 

(3

)

 

 

(3

)

 

 

 

 

 

191

 

 

 

191

 

Charges (reversals) included in "General

   and administrative"

 

(4

)

 

 

18

 

 

 

14

 

 

 

54

 

 

 

2,161

 

 

 

2,215

 

Cash payments

 

(331

)

 

 

(731

)

 

 

(1,062

)

 

 

 

 

 

(1,448

)

 

 

(1,448

)

Balance sheet reclassifications (1)

 

(1,338

)

 

 

 

 

 

(1,338

)

 

 

 

 

 

 

 

 

 

Balance at the end of the period

$

96

 

 

$

101

 

 

$

197

 

 

$

54

 

 

$

904

 

 

$

958

 

 

(1) Consists of the reclassification from the restructuring liability to “Operating lease liabilities” and “Long-term operating lease liabilities” upon adoption of ASC 842 on January 1, 2019.  

The following table summarizes the accrued liability and related charges for the nine months ended September 30, 2018 (in thousands):

 

Americas

2018 Exit Plan

 

 

Lease Obligations

and Facility

Exit Costs

 

 

Severance and

Related Costs

 

 

Total

 

Balance at the beginning of the period

$

 

 

$

 

 

$

 

Charges (reversals) included in "Direct

   salaries and related costs"

 

 

 

 

3,417

 

 

 

3,417

 

Charges (reversals) included in "General

   and administrative"

 

6,860

 

 

 

550

 

 

 

7,410

 

Cash payments

 

(1,869

)

 

 

(3,340

)

 

 

(5,209

)

Balance sheet reclassifications (1)

 

335

 

 

 

 

 

 

335

 

Balance at the end of the period

$

5,326

 

 

$

627

 

 

$

5,953

 

 

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

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

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with its Americas 2018 and 2019 Exit Plans (in thousands):

 

 

Americas

2018 Exit Plan

 

 

Americas

2019 Exit Plan

 

 

September 30, 2019

 

 

December 31, 2018

 

 

September 30, 2019

 

Lease obligations and facility exit costs:

 

 

 

 

 

 

 

 

 

 

 

Included in "Accounts payable"

$

 

 

$

100

 

 

$

54

 

Included in "Other accrued expenses and current

   liabilities"

 

55

 

 

 

952

 

 

 

 

Included in "Other long-term liabilities"

 

41

 

 

 

717

 

 

 

 

 

 

96

 

 

 

1,769

 

 

$

54

 

Severance and related costs:

 

 

 

 

 

 

 

 

 

 

 

Included in "Accrued employee compensation and

   benefits"

 

101

 

 

 

793

 

 

 

902

 

Included in "Other accrued expenses and current

   liabilities"

 

 

 

 

24

 

 

 

2

 

 

 

101

 

 

 

817

 

 

 

904

 

 

$

197

 

 

$

2,586

 

 

$

958

 

 

v3.19.3
Fair Value (Tables)
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis

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

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

September 30, 2019

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

2,576

 

 

$

 

 

$

2,576

 

 

$

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

8,305

 

 

 

8,305

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

4,712

 

 

 

4,712

 

 

 

 

 

 

 

 

$

15,593

 

 

$

13,017

 

 

$

2,576

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

425

 

 

$

 

 

$

425

 

 

$

 

 

$

425

 

 

$

 

 

$

425

 

 

$

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

December 31, 2018

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

1,068

 

 

$

 

 

$

1,068

 

 

$

 

Embedded derivatives (1)

 

10

 

 

 

 

 

 

 

 

 

10

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

8,075

 

 

 

8,075

 

 

 

 

 

 

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

3,367

 

 

 

3,367

 

 

 

 

 

 

 

 

$

12,520

 

 

$

11,442

 

 

$

1,068

 

 

$

10

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

2,895

 

 

$

 

 

$

2,895

 

 

$

 

Embedded derivatives (1)

 

369

 

 

 

 

 

 

 

 

 

369

 

 

$

3,264

 

 

$

 

 

$

2,895

 

 

$

369

 

 

(1) See Note 7, 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 8, Investments Held in Rabbi Trust.

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

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Balance at the beginning of the period

$

 

 

$

(598

)

 

$

(359

)

 

$

(527

)

Derecognition of embedded derivatives (1)

 

 

 

 

 

 

 

359

 

 

 

 

Gains (losses) recognized in "Other income

   (expense), net"

 

 

 

 

159

 

 

 

 

 

 

(6

)

Settlements

 

 

 

 

38

 

 

 

 

 

 

118

 

Effect of foreign currency

 

 

 

 

(1

)

 

 

 

 

 

13

 

Balance at the end of the period

$

 

 

$

(402

)

 

$

 

 

$

(402

)

Change in unrealized gains (losses) included in "Other

   income (expense), net" related to embedded

   derivatives held at the end of the period

$

 

 

$

153

 

 

$

 

 

$

(19

)

(1) Derecognition upon adoption of ASC 842 on January 1, 2019. See Note 3, Leases, for more information.  

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

The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) subject to the requirements of ASC 820 (in thousands):

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

$

 

 

$

(555

)

 

$

(343

)

 

$

(9,256

)

Operating lease right-of-use assets

 

 

 

 

 

 

 

(1,368

)

 

 

 

 

$

 

 

$

(555

)

 

$

(1,711

)

 

$

(9,256

)

v3.19.3
Goodwill and Intangible Assets (Tables)
9 Months Ended
Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Company's Purchased Intangible Assets

The following table presents the Company’s purchased intangible assets as of September 30, 2019 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

189,177

 

 

$

(117,027

)

 

$

72,150

 

 

 

10

 

Trade names and trademarks

 

19,093

 

 

 

(12,310

)

 

 

6,783

 

 

 

8

 

Non-compete agreements

 

2,714

 

 

 

(2,088

)

 

 

626

 

 

 

3

 

Content library

 

492

 

 

 

(492

)

 

 

 

 

 

2

 

Proprietary software

 

870

 

 

 

(660

)

 

 

210

 

 

 

5

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

80,710

 

 

 

 

 

 

80,710

 

 

N/A

 

 

$

293,056

 

 

$

(132,577

)

 

$

160,479

 

 

 

5

 

 

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

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

189,697

 

 

$

(106,502

)

 

$

83,195

 

 

 

10

 

Trade names and trademarks

 

19,236

 

 

 

(10,594

)

 

 

8,642

 

 

 

8

 

Non-compete agreements

 

2,746

 

 

 

(1,724

)

 

 

1,022

 

 

 

3

 

Content library

 

517

 

 

 

(517

)

 

 

 

 

 

2

 

Proprietary software

 

1,040

 

 

 

(725

)

 

 

315

 

 

 

4

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

80,857

 

 

 

 

 

 

80,857

 

 

N/A

 

 

$

294,093

 

 

$

(120,062

)

 

$

174,031

 

 

 

5

 

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 September 30, 2019 is as follows (in thousands):

 

 

Amount

 

2019 (remainder of the year)

$

4,054

 

2020

 

13,897

 

2021

 

9,312

 

2022

 

8,035

 

2023

 

7,205

 

2024

 

6,960

 

2025 and thereafter

 

30,306

 

 

Changes in Goodwill

Changes in goodwill for the nine months ended September 30, 2019 consisted of the following (in thousands):

 

 

January 1, 2019

 

 

Acquisition-

Related  (1)

 

 

Effect of

Foreign

Currency

 

 

September 30, 2019

 

Americas

$

255,436

 

 

$

1,202

 

 

$

1,799

 

 

$

258,437

 

EMEA

 

47,081

 

 

 

(124

)

 

 

(1,594

)

 

 

45,363

 

 

$

302,517

 

 

$

1,078

 

 

$

205

 

 

$

303,800

 

 

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

 

 

January 1, 2018

 

 

Acquisition-

Related  (1)

 

 

Effect of

Foreign

Currency

 

 

December 31, 2018

 

Americas

$

258,496

 

 

$

2,175

 

 

$

(5,235

)

 

$

255,436

 

EMEA

 

10,769

 

 

 

36,361

 

 

 

(49

)

 

 

47,081

 

 

$

269,265

 

 

$

38,536

 

 

$

(5,284

)

 

$

302,517

 

 

(1) See Note 1, Overview and Basis of Presentation, for further information. The year ended December 31, 2018 includes the goodwill recorded upon acquisition of WhistleOut and Symphony, while the nine months ended September 30, 2019 includes the impact of adjustments to acquired goodwill upon finalization of working capital adjustments and the tax analysis of WhistleOut’s assets acquired and liabilities assumed.

 

v3.19.3
Financial Derivatives (Tables)
9 Months Ended
Sep. 30, 2019
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):

 

 

September 30, 2019

 

 

December 31, 2018

 

Deferred gains (losses) in AOCI

$

1,553

 

 

$

(1,825

)

Tax on deferred gains (losses) in AOCI

 

(47

)

 

 

(39

)

Deferred gains (losses) in AOCI, net of taxes

$

1,506

 

 

$

(1,864

)

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

   from AOCI during the next twelve months

$

1,553

 

 

 

 

 

Outstanding Foreign Currency Forward Contracts, Options and Embedded Derivatives

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

 

 

September 30, 2019

 

 

December 31, 2018

 

Contract Type

Notional

Amount

in USD

 

 

Settle

Through

Date

 

 

Notional

Amount

in USD

 

 

Settle

Through

Date

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

$

77,000

 

 

September 2020

 

 

$

26,250

 

 

December 2019

 

Forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

 

 

 

 

 

 

 

39,000

 

 

September 2019

 

US Dollars/Costa Rican Colones

 

27,000

 

 

June 2020

 

 

 

67,000

 

 

December 2019

 

Euros/Hungarian Forints

 

752

 

 

December 2019

 

 

 

 

 

 

 

Euros/Romanian Leis

 

4,142

 

 

December 2019

 

 

 

 

 

 

 

Non-designated hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forwards

 

25,161

 

 

November 2021

 

 

 

19,261

 

 

November 2021

 

Embedded derivatives

 

 

 

 

 

 

 

14,069

 

 

April 2030

 

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

 

September 30, 2019

 

 

December 31, 2018

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

$

2,358

 

 

$

1,038

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

 

81

 

 

 

30

 

Foreign currency contracts

 

Deferred charges and other assets

 

 

137

 

 

 

 

Embedded derivatives

 

Other current assets

 

 

 

 

 

10

 

Total derivative assets

 

 

 

$

2,576

 

 

$

1,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liabilities

 

 

 

Balance Sheet Location

 

September 30, 2019

 

 

December 31, 2018

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

$

28

 

 

$

2,604

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

 

397

 

 

 

247

 

Foreign currency contracts

 

Other long-term liabilities

 

 

 

 

 

44

 

Embedded derivatives

 

Other accrued expenses and current liabilities

 

 

 

 

 

8

 

Embedded derivatives

 

Other long-term liabilities

 

 

 

 

 

361

 

Total derivative liabilities

 

 

 

$

425

 

 

$

3,264

 

 

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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

(Losses) in Net Income

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues

 

 

 

$

397,547

 

 

$

399,333

 

 

$

1,189,478

 

 

$

1,210,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized in AOCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

 

 

 

(36

)

 

 

(1,839

)

 

 

4,733

 

 

 

(4,840

)

   Gains (losses) reclassified from AOCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

Revenues

 

 

1,134

 

 

 

183

 

 

 

1,264

 

 

 

619

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized from foreign

      currency contracts

 

Other income (expense), net

 

$

(363

)

 

$

(539

)

 

$

(828

)

 

$

(1,801

)

   Gains (losses) recognized from embedded

      derivatives

 

Other income (expense), net

 

 

 

 

 

159

 

 

 

 

 

 

(6

)

 

 

 

 

$

(363

)

 

$

(380

)

 

$

(828

)

 

$

(1,807

)

 

v3.19.3
Investments Held in Rabbi Trust (Tables)
9 Months Ended
Sep. 30, 2019
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):

 

 

September 30, 2019

 

 

December 31, 2018

 

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

Mutual funds

$

9,455

 

 

$

13,017

 

 

$

8,864

 

 

$

11,442

 

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 64% equity-based and 36% debt-based as of September 30, 2019. 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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net realized gains (losses) from sale of trading securities

$

62

 

 

$

10

 

 

$

128

 

 

$

42

 

Dividend and interest income

 

35

 

 

 

31

 

 

 

117

 

 

 

99

 

Net unrealized holding gains (losses)

 

(56

)

 

 

366

 

 

 

1,402

 

 

 

383

 

 

$

41

 

 

$

407

 

 

$

1,647

 

 

$

524

 

 

v3.19.3
Borrowings (Tables)
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Information Related to Credit Agreements

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Average daily utilization

$

91,935

 

 

$

101,087

 

 

$

92,495

 

 

$

107,454

 

Interest expense (1)

$

899

 

 

$

923

 

 

$

2,783

 

 

$

2,839

 

Weighted average interest rate (1)

 

3.9

%

 

 

3.6

%

 

 

4.0

%

 

 

3.6

%

 

(1) Excludes the amortization of deferred loan fees and includes the commitment fee.

v3.19.3
Accumulated Other Comprehensive Income (Loss) (Tables)
9 Months Ended
Sep. 30, 2019
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, 2018

$

(36,315

)

 

$

1,046

 

 

$

2,471

 

 

$

1,574

 

 

$

120

 

 

$

(31,104

)

Pre-tax amount

 

(22,158

)

 

 

 

 

 

(4,287

)

 

 

783

 

 

 

 

 

 

(25,662

)

Tax (provision) benefit

 

 

 

 

 

 

 

84

 

 

 

47

 

 

 

 

 

 

131

 

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

6

 

 

 

(66

)

 

 

(80

)

 

 

(140

)

Foreign currency translation

 

220

 

 

 

 

 

 

(138

)

 

 

(82

)

 

 

 

 

 

 

Balance at December 31, 2018

 

(58,253

)

 

 

1,046

 

 

 

(1,864

)

 

 

2,256

 

 

 

40

 

 

 

(56,775

)

Pre-tax amount

 

(7,048

)

 

 

 

 

 

4,733

 

 

 

 

 

 

 

 

 

(2,315

)

Tax (provision) benefit

 

 

 

 

 

 

 

(85

)

 

 

10

 

 

 

 

 

 

(75

)

Reclassification of (gain) loss to net income

 

 

 

 

 

 

 

(1,186

)

 

 

(72

)

 

 

(15

)

 

 

(1,273

)

Foreign currency translation

 

56

 

 

 

 

 

 

(92

)

 

 

36

 

 

 

 

 

 

 

Balance at September 30, 2019

$

(65,245

)

 

$

1,046

 

 

$

1,506

 

 

$

2,230

 

 

$

25

 

 

$

(60,438

)

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 September 30,

 

 

Nine Months Ended September 30,

 

 

Statements of

Operations

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

Location

Gain (loss) on cash flow hedging

   instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

$

1,134

 

 

$

183

 

 

$

1,264

 

 

$

619

 

 

Revenues

Tax (provision) benefit

 

(33

)

 

 

19

 

 

 

(78

)

 

 

43

 

 

Income taxes

Reclassification to net income

 

1,101

 

 

 

202

 

 

 

1,186

 

 

 

662

 

 

 

Actuarial gain (loss) related to

   pension liability: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

 

21

 

 

 

13

 

 

 

63

 

 

 

42

 

 

Other income (expense), net

Tax (provision) benefit

 

3

 

 

 

3

 

 

 

9

 

 

 

9

 

 

Income taxes

Reclassification to net income

 

24

 

 

 

16

 

 

 

72

 

 

 

51

 

 

 

Gain (loss) on postretirement

   obligation: (2),(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification to net income

 

5

 

 

 

84

 

 

 

15

 

 

 

104

 

 

Other income (expense), net

 

$

1,130

 

 

$

302

 

 

$

1,273

 

 

$

817

 

 

 

 

(1) See Note 7, Financial Derivatives, for further information.

(2) See Note 14, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

(3) No related tax (provision) benefit.

v3.19.3
Income Taxes (Tables)
9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Summary of Effective Tax Rates

The Company’s effective tax rates were as follows:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Effective tax rate

 

23.9

%

 

 

4.4

%

 

 

23.8

%

 

 

2.6

%

v3.19.3
Earnings Per Share (Tables)
9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Numbers 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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

41,190

 

 

 

42,136

 

 

 

41,808

 

 

 

42,070

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of stock appreciation rights, restricted

   stock, restricted stock units and shares held in

   rabbi trust

 

117

 

 

 

68

 

 

 

100

 

 

 

131

 

Total weighted average diluted shares outstanding

 

41,307

 

 

 

42,204

 

 

 

41,908

 

 

 

42,201

 

Anti-dilutive shares excluded from the diluted earnings

   per share calculation

 

52

 

 

 

23

 

 

 

174

 

 

 

11

 

Shares Repurchased

The shares repurchased under the Company’s 2011 Share Repurchase Program were as follows (none in 2018) (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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

369

 

 

$

26.81

 

 

$

28.00

 

 

$

10,103

 

Nine Months Ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

1,140

 

 

$

24.72

 

 

$

28.00

 

 

$

30,281

 

v3.19.3
Defined Benefit Pension Plan and Postretirement Benefits (Tables)
9 Months Ended
Sep. 30, 2019
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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

$

98

 

 

$

106

 

 

$

296

 

 

$

329

 

Interest cost

 

62

 

 

 

46

 

 

 

186

 

 

 

144

 

Recognized actuarial (gains)

 

(21

)

 

 

(13

)

 

 

(63

)

 

 

(42

)

 

$

139

 

 

$

139

 

 

$

419

 

 

$

431

 

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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

401(k) plan contributions

$

410

 

 

$

392

 

 

$

1,295

 

 

$

1,195

 

 

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

 

September 30, 2019

 

 

December 31, 2018

 

Postretirement benefit obligation

$

6

 

 

$

12

 

Unrealized gains (losses) in AOCI (1)

 

25

 

 

 

40

 

 

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

v3.19.3
Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2019
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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Stock-based compensation (expense) (1)

$

(1,504

)

 

$

(1,567

)

 

$

(5,594

)

 

$

(5,317

)

Income tax benefit (2)

 

361

 

 

 

376

 

 

 

1,343

 

 

 

1,276

 

 

(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.

v3.19.3
Segments and Geographic Information (Tables)
9 Months Ended
Sep. 30, 2019
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 September 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

318,097

 

 

$

79,427

 

 

$

23

 

 

$

397,547

 

Percentage of revenues

 

80.0

%

 

 

20.0

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

10,086

 

 

$

1,611

 

 

$

752

 

 

$

12,449

 

Amortization of intangibles

$

3,289

 

 

$

814

 

 

$

 

 

$

4,103

 

Income (loss) from operations

$

34,516

 

 

$

5,688

 

 

$

(15,498

)

 

$

24,706

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(912

)

 

 

(912

)

Income taxes

 

 

 

 

 

 

 

 

 

(5,689

)

 

 

(5,689

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

18,105

 

Three Months Ended September 30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

328,762

 

 

$

70,543

 

 

$

28

 

 

$

399,333

 

Percentage of revenues

 

82.3

%

 

 

17.7

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

11,838

 

 

$

1,473

 

 

$

761

 

 

$

14,072

 

Amortization of intangibles

$

3,439

 

 

$

199

 

 

$

 

 

$

3,638

 

Income (loss) from operations

$

25,666

 

 

$

5,098

 

 

$

(16,318

)

 

$

14,446

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(66

)

 

 

(66

)

Income taxes

 

 

 

 

 

 

 

 

 

(628

)

 

 

(628

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

13,752

 

Nine Months Ended September 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

953,181

 

 

$

236,231

 

 

$

66

 

 

$

1,189,478

 

Percentage of revenues

 

80.1

%

 

 

19.9

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

32,252

 

 

$

4,865

 

 

$

2,281

 

 

$

39,398

 

Amortization of intangibles

$

10,015

 

 

$

2,501

 

 

$

 

 

$

12,516

 

Income (loss) from operations

$

91,168

 

 

$

11,840

 

 

$

(46,295

)

 

$

56,713

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(2,815

)

 

 

(2,815

)

Income taxes

 

 

 

 

 

 

 

 

 

(12,837

)

 

 

(12,837

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

41,061

 

Nine Months Ended September 30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

996,524

 

 

$

213,890

 

 

$

75

 

 

$

1,210,489

 

Percentage of revenues

 

82.3

%

 

 

17.7

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

36,856

 

 

$

4,360

 

 

$

2,252

 

 

$

43,468

 

Amortization of intangibles

$

10,846

 

 

$

634

 

 

$

 

 

$

11,480

 

Income (loss) from operations

$

71,354

 

 

$

11,957

 

 

$

(48,121

)

 

$

35,190

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(2,457

)

 

 

(2,457

)

Income taxes

 

 

 

 

 

 

 

 

 

(855

)

 

 

(855

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

31,878

 

 

(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 Geographic Location

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

$

144,698

 

 

$

161,429

 

 

$

451,466

 

 

$

498,523

 

The Philippines

 

65,560

 

 

 

57,953

 

 

 

180,431

 

 

 

174,610

 

Costa Rica

 

31,228

 

 

 

33,120

 

 

 

93,524

 

 

 

96,168

 

Canada

 

24,815

 

 

 

25,549

 

 

 

74,885

 

 

 

77,566

 

El Salvador

 

20,904

 

 

 

20,732

 

 

 

61,447

 

 

 

61,327

 

People's Republic of China

 

8,681

 

 

 

8,337

 

 

 

26,489

 

 

 

25,834

 

Australia

 

7,425

 

 

 

8,619

 

 

 

22,382

 

 

 

24,021

 

Mexico

 

7,016

 

 

 

6,221

 

 

 

20,648

 

 

 

18,171

 

Colombia

 

4,513

 

 

 

4,704

 

 

 

13,957

 

 

 

13,395

 

Other

 

3,257

 

 

 

2,098

 

 

 

7,952

 

 

 

6,909

 

Total Americas

 

318,097

 

 

 

328,762

 

 

 

953,181

 

 

 

996,524

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

23,471

 

 

 

22,448

 

 

 

70,148

 

 

 

69,027

 

United Kingdom

 

18,141

 

 

 

12,333

 

 

 

52,759

 

 

 

37,640

 

Sweden

 

12,850

 

 

 

13,422

 

 

 

39,891

 

 

 

41,226

 

Romania

 

8,457

 

 

 

8,704

 

 

 

24,850

 

 

 

25,031

 

Other

 

16,508

 

 

 

13,636

 

 

 

48,583

 

 

 

40,966

 

Total EMEA

 

79,427

 

 

 

70,543

 

 

 

236,231

 

 

 

213,890

 

Total Other

 

23

 

 

 

28

 

 

 

66

 

 

 

75

 

 

$

397,547

 

 

$

399,333

 

 

$

1,189,478

 

 

$

1,210,489

 

v3.19.3
Other Income (Expense) (Tables)
9 Months Ended
Sep. 30, 2019
Other Income And Expenses [Abstract]  
Other Income (Expense), Net

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Foreign currency transaction gains (losses)

$

430

 

 

$

1,066

 

 

$

(107

)

 

$

3,155

 

Gains (losses) on derivative instruments not designated as hedges

 

(363

)

 

 

(380

)

 

 

(828

)

 

 

(1,807

)

Net investment gains (losses) on investments held in rabbi trust

 

41

 

 

 

407

 

 

 

1,647

 

 

 

524

 

Other miscellaneous income (expense)

 

(163

)

 

 

(174

)

 

 

(690

)

 

 

(1,335

)

 

$

(55

)

 

$

919

 

 

$

22

 

 

$

537

 

v3.19.3
Overview and Basis of Presentation - Additional Information (Detail)
$ in Thousands, £ in Millions, $ in Millions
1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Nov. 05, 2019
Nov. 01, 2018
USD ($)
Nov. 01, 2018
GBP (£)
Oct. 18, 2018
Jul. 09, 2018
USD ($)
Jul. 09, 2018
AUD ($)
Jul. 31, 2019
USD ($)
Jul. 31, 2019
AUD ($)
Aug. 31, 2018
USD ($)
Jul. 31, 2017
USD ($)
Sep. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Mar. 31, 2019
GBP (£)
Mar. 31, 2019
AUD ($)
Sep. 30, 2018
USD ($)
Sep. 30, 2019
USD ($)
Segment
Sep. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Number of reportable segments | Segment                               2      
Statutory federal income tax rate                     21.00%         21.00%     35.00%
Proceeds from issuance of long-term debt                               $ 12,000 $ 27,000    
Goodwill, net                     $ 303,800         $ 303,800   $ 302,517 $ 269,265
Equity method investment payment                                 5,000    
Advertising costs policy                               Expensed as incurred      
Accounting Standards Update 2016-02 [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
ASU adoption status                     true         true      
ASU adoption date                     Jan. 01, 2019         Jan. 01, 2019      
ASU adoption approach                     Modified Retrospective         Modified Retrospective      
Accounting Standards Update 2017-12 [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
ASU adoption status                     true         true      
ASU adoption date                     Jan. 01, 2019         Jan. 01, 2019      
ASU adoption approach                     Modified Retrospective         Modified Retrospective      
XSell Technologies Inc [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Equity method investment, ownership percentage                   32.80%                  
Equity method investment payment                 $ 5,000 $ 5,000                  
XSell Technologies Inc [Member] | Other Income (Expense), Net [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Net (loss) from equity method investments                     $ (100)       $ (200) $ (300) $ (400)    
Deferred Charges and Other Assets [Member] | XSell Technologies Inc [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Equity method investment                   $ 10,000 $ 8,800         $ 8,800   $ 9,200  
Subsequent Event [Member] | Tornado [Member] | Fort Smith, Arkansas [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Insurance claim settlement date Nov. 05, 2019                                    
Symphony [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Date of Acquisition agreement       Oct. 18, 2018                              
Purchase price   $ 67,600 £ 52.5                 $ 67,500 £ 52.4            
Payments to acquire businesses, gross   $ 57,600 £ 44.6                                
Effective date of acquisition   Nov. 01, 2018 Nov. 01, 2018                                
Deferred purchase price   $ 10,000 £ 7.9                                
Business combination consideration transferred liabilities incurred payment terms                               equal installments over three years, on or around November 1, 2019, 2020 and 2021      
Earnout period   3 years 3 years                                
Earnout payable in RSUs | £     £ 3.0                                
Property and equipment acquired   $ 2,200                                  
Goodwill, net   36,200                                  
Symphony [Member] | Customer Relationships and Trade Names [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Business combination intangible assets, primarily indefinite-lived domain names acquired   26,100                                  
Symphony [Member] | Revolving Credit Facility [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Proceeds from issuance of long-term debt   $ 31,000                                  
WhistleOut [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Purchase price         $ 22,400 $ 30.2           $ 22,500   $ 30.3          
Effective date of acquisition         Jul. 09, 2018 Jul. 09, 2018                          
Business combination consideration transferred liabilities incurred payment terms                               three installments on or about July 1, 2019, 2020 and 2021.      
Earnout period         3 years 3 years                          
Business combination intangible assets, primarily indefinite-lived domain names acquired         $ 16,500                            
Property and equipment acquired         2,400                            
Earnout           $ 14.0                          
Earnout first installment             $ 4,200 $ 6.0                      
Goodwill, net         3,300                            
WhistleOut [Member] | Revolving Credit Facility [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Proceeds from issuance of long-term debt         $ 22,000                            
US Federal Rate Prior To The 2017 Tax Reform Act [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Statutory federal income tax rate                                     35.00%
US 2017 Tax Reform Act [Member]                                      
Organization Consolidation And Presentation Of Financial Statements [Line Items]                                      
Statutory federal income tax rate                                   21.00%  
v3.19.3
Overview and Basis of Presentation - Summary of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Dec. 31, 2017
Restricted Cash and Cash Equivalents Items [Line Items]        
Cash and cash equivalents $ 142,572 $ 128,697 $ 157,268 $ 343,734
Cash and Cash Equivalents and Restricted Cash 144,567 130,231 158,319 344,805
Other Current Assets [Member]        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash included in "Other current assets" 563 149 158 154
Deferred Charges and Other Assets [Member]        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash included in "Deferred charges and other assets" $ 1,432 $ 1,385 $ 893 $ 917
v3.19.3
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 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Direct Salaries and Related Costs [Member]        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Customer-acquisition advertising costs $ 11,188 $ 13,907 $ 33,328 $ 35,835
v3.19.3
Revenues - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Mar. 31, 2018
Jan. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Percentage of revenue 100.00% 100.00% 100.00% 100.00%    
Deferred revenue recognized in the period $ 200 $ 100 $ 3,600 $ 4,300    
Revenue remaining performance obligation expected timing of satisfaction explanation     The Company expects to recognize the majority of its deferred revenue as of September 30, 2019 over the next 180 days      
Estimated refund liabilities timing of resolution explanation     Estimated refund liabilities are generally resolved in 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency.      
Customer Engagement Solutions and Services [Member]            
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Revenue, performance obligation satisfied over time, method used, description     Revenues for customer engagement 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      
Other Revenues [Member]            
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Percentage of revenue 2.60% 0.50% 2.40% 0.50%    
Accounting Standards Update 2014-09 [Member]            
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Retained earnings         $ 3,019  
ASU adoption date Jan. 01, 2018   Jan. 01, 2018      
ASU adoption approach Modified Retrospective   Modified Retrospective      
ASU adoption status true   true      
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]            
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Retained earnings         $ 3,019 $ 3,000
v3.19.3
Revenues - Revenues from Contracts with Customers Disaggregated by Service Type (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Disaggregation of Revenue [Line Items]        
Revenues $ 397,547 $ 399,333 $ 1,189,478 $ 1,210,489
Americas [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 318,097 328,762 953,181 996,524
Americas [Member] | Customer Engagement Solutions and Services [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 317,806 328,535 952,438 995,723
Americas [Member] | Other Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 291 227 743 801
EMEA [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 79,427 70,543 236,231 213,890
EMEA [Member] | Customer Engagement Solutions and Services [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 69,329 68,859 208,969 208,302
EMEA [Member] | Other Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 10,098 1,684 27,262 5,588
Other Segment [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 23 28 66 75
Other Segment [Member] | Other Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Revenues $ 23 $ 28 $ 66 $ 75
v3.19.3
Revenues - Summary of Trade Accounts Receivable, Net (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net $ 359,977 $ 351,325
Receivables Net, Current [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net, current 340,520 335,377
Deferred Charges and Other Assets [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net, noncurrent $ 19,457 $ 15,948
v3.19.3
Revenues - Components of Deferred Revenue and Customer Liabilities (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Schedule of Deferred Revenue and Customer Liabilities [Line Items]    
Deferred revenue and customer liabilities $ 28,906 $ 30,176
Deferred Revenue and Customer Liabilities [Member]    
Schedule of Deferred Revenue and Customer Liabilities [Line Items]    
Deferred revenue 3,691 3,655
Customer arrangements with termination rights 15,891 16,404
Estimated refund liabilities $ 9,324 $ 10,117
v3.19.3
Leases - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Mar. 31, 2019
Jan. 01, 2019
Lessee Lease Description [Line Items]        
Operating lease right-of-use assets $ 203,417 $ 203,417    
Operating lease, liability 216,331 216,331    
Finance lease 0 0    
Expected contractual sublease income 13,200 13,200    
Rental expense 19,000 53,600    
Customer Engagement Centers [Member]        
Lessee Lease Description [Line Items]        
Operating lease not yet commenced with future lease payments $ 700 $ 700    
Operating lease not yet commenced description   As of September 30, 2019, the Company had additional operating leases for customer engagement centers that had not yet commenced with future lease payments of $0.7 million. These operating leases will commence during the fourth quarter of 2019 with lease terms between 1 and 6 years.    
Minimum [Member]        
Lessee Lease Description [Line Items]        
Operating lease term of contract 3 years 3 years    
Operating lease renewal term 1 month 1 month    
Operating lease remaining lease term   1 month    
Lease terms 1 year 1 year    
Maximum [Member]        
Lessee Lease Description [Line Items]        
Operating lease term of contract 20 years 20 years    
Operating lease renewal term 5 years 5 years    
Operating lease remaining lease term   13 years    
Lease terms 6 years 6 years    
Accounting Standards Update 2016-02 [Member]        
Lessee Lease Description [Line Items]        
ASU adoption status true true    
ASU adoption date Jan. 01, 2019 Jan. 01, 2019    
ASU adoption approach Modified Retrospective Modified Retrospective    
Operating lease right-of-use assets       $ 225,300
Operating lease, liability       239,300
Cumulative effect of accounting change     $ 110  
Derecognition of straight line lease liabilities net       14,100
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member]        
Lessee Lease Description [Line Items]        
Cumulative effect of accounting change     $ 110 $ 100
v3.19.3
Leases - Components of Lease Expense (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Lessee Lease Description [Line Items]    
Lease, Cost $ 15,898 $ 47,971
Direct Salaries And Related Costs [Member]    
Lessee Lease Description [Line Items]    
Operating lease cost 37 170
Variable lease cost   (1)
General and Administrative [Member]    
Lessee Lease Description [Line Items]    
Operating lease cost 14,645 44,460
Short-term lease cost 970 1,783
Variable lease cost 1,116 3,426
Sublease income $ (870) $ (1,867)
v3.19.3
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail)
$ in Thousands
9 Months Ended
Sep. 30, 2019
USD ($)
Leases [Abstract]  
Cash paid for amounts included in the measurement of operating lease liabilities - operating cash flows $ 43,387
Right-of-use assets obtained in exchange for new operating lease liabilities $ 18,447
v3.19.3
Leases - Schedule of Additional Supplemental Information Related to Leases (Detail)
Sep. 30, 2019
Leases [Abstract]  
Weighted average remaining lease term of operating leases 5 years 4 months 24 days
Weighted average discount rate of operating leases 3.70%
v3.19.3
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail)
$ in Thousands
Sep. 30, 2019
USD ($)
Operating Lease Liabilities Payments Due [Abstract]  
2019 (remainder of the year) $ 10,767
2020 57,324
2021 51,118
2022 39,370
2023 25,829
2024 and thereafter 55,475
Total future lease payments 239,883
Less: Imputed interest 23,552
Present value of future lease payments 216,331
Less: Operating lease liabilities 48,323
Long-term operating lease liabilities $ 168,008
v3.19.3
Leases - Schedule of Future Minimum Rental Payments under Operating Leases under ASC 840 (Detail)
$ in Thousands
Dec. 31, 2018
USD ($)
Operating Leases Future Minimum Payments Due [Abstract]  
2019 $ 53,071
2020 48,770
2021 43,324
2022 34,063
2023 22,583
2024 and thereafter 51,456
Total minimum payments required $ 253,267
v3.19.3
Costs Associated with Exit or Disposal Activities - Additional Information (Detail) - Americas [Member]
$ in Millions
9 Months Ended
Sep. 30, 2019
USD ($)
Dec. 31, 2018
Seat
Restructuring Cost And Reserve [Line Items]    
Total cash payment related to restructuring $ 11.8  
2018 Exit Plan [Member]    
Restructuring Cost And Reserve [Line Items]    
Reduction in number of seats | Seat   5,000
Total cash payment related to restructuring $ 10.4  
Lease termination date Jun. 30, 2021  
2019 Exit Plan [Member]    
Restructuring Cost And Reserve [Line Items]    
Total cash payment related to restructuring $ 1.4  
v3.19.3
Costs Associated with Exit or Disposal Activities - Cumulative Total Costs Expected and Incurred to Date Related to Cash and Non-Cash Expenditures Resulting from Exit Plan (Detail) - Americas [Member]
$ in Thousands
Sep. 30, 2019
USD ($)
2018 Exit Plan [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date $ 17,427
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date 7,073
2018 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date 1,053
2018 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date 3,426
2018 Exit Plan [Member] | Non-Cash Impairment Charges [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date 5,875
2019 Exit Plan [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date 4,232
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date 54
2019 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date 2,161
2019 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date 191
2019 Exit Plan [Member] | Non-Cash Impairment Charges [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date 1,582
2019 Exit Plan [Member] | Other Non-Cash Charges [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date $ 244
v3.19.3
Costs Associated with Exit or Disposal Activities - Summary of Accrued Liability and Related Charges (Detail) - Americas [Member] - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
2018 Exit Plan [Member]        
Restructuring Reserve [Roll Forward]        
Balance at the beginning of the period $ 351 $ 3,305 $ 2,586 $ 0
Cash payments (162) (4,649) (1,062) (5,209)
Balance sheet reclassifications   119 (1,338) 335
Balance at the end of the period 197 5,953 197 5,953
2018 Exit Plan [Member] | General and Administrative [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges (reversals) 8 4,163 14 7,410
2018 Exit Plan [Member] | Direct Salaries and Related Costs [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges (reversals)   3,015 (3) 3,417
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member]        
Restructuring Reserve [Roll Forward]        
Balance at the beginning of the period 129 2,815 1,769 0
Cash payments (33) (1,440) (331) (1,869)
Balance sheet reclassifications   119 (1,338) 335
Balance at the end of the period 96 5,326 96 5,326
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges (reversals)   3,832 (4) 6,860
2018 Exit Plan [Member] | Severance and Related Costs [Member]        
Restructuring Reserve [Roll Forward]        
Balance at the beginning of the period 222 490 817 0
Cash payments (129) (3,209) (731) (3,340)
Balance at the end of the period 101 627 101 627
2018 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges (reversals) 8 331 18 550
2018 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges (reversals)   $ 3,015 (3) $ 3,417
2019 Exit Plan [Member]        
Restructuring Reserve [Roll Forward]        
Balance at the beginning of the period 1,615   0  
Cash payments (649)   (1,448)  
Balance at the end of the period 958   958  
2019 Exit Plan [Member] | General and Administrative [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges (reversals) (8)   2,215  
2019 Exit Plan [Member] | Direct Salaries and Related Costs [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges (reversals)     191  
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member]        
Restructuring Reserve [Roll Forward]        
Balance at the beginning of the period 54   0  
Balance at the end of the period 54   54  
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges (reversals)     54  
2019 Exit Plan [Member] | Severance and Related Costs [Member]        
Restructuring Reserve [Roll Forward]        
Balance at the beginning of the period 1,561   0  
Cash payments (649)   (1,448)  
Balance at the end of the period 904   904  
2019 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges (reversals) $ (8)   2,161  
2019 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges (reversals)     $ 191  
v3.19.3
Costs Associated with Exit or Disposal Activities - Summary of Company's Short-term and Long-term Accrued Liability with Exit Plan (Detail) - Americas [Member] - USD ($)
$ in Thousands
Sep. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Dec. 31, 2017
2018 Exit Plan [Member]            
Restructuring Cost And Reserve [Line Items]            
Restructuring reserve $ 197 $ 351 $ 2,586 $ 5,953 $ 3,305 $ 0
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Restructuring reserve 96 129 1,769 5,326 2,815 0
2018 Exit Plan [Member] | Severance and Related Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Restructuring reserve 101 222 817 $ 627 $ 490 $ 0
2018 Exit Plan [Member] | Accounts Payable [Member] | Lease Obligations and Facility Exit Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Short-term accrued restructuring liability     100      
2018 Exit Plan [Member] | Other Accrued Expenses and Current Liabilities [Member] | Lease Obligations and Facility Exit Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Short-term accrued restructuring liability 55   952      
2018 Exit Plan [Member] | Other Accrued Expenses and Current Liabilities [Member] | Severance and Related Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Short-term accrued restructuring liability     24      
2018 Exit Plan [Member] | Other Long-Term Liabilities [Member] | Lease Obligations and Facility Exit Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Long-term accrued restructuring liability 41   717      
2018 Exit Plan [Member] | Accrued Employee Compensation and Benefits [Member] | Severance and Related Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Short-term accrued restructuring liability 101   793      
2019 Exit Plan [Member]            
Restructuring Cost And Reserve [Line Items]            
Restructuring reserve 958 1,615 0      
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Restructuring reserve 54 54 0      
2019 Exit Plan [Member] | Severance and Related Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Restructuring reserve 904 $ 1,561 $ 0      
2019 Exit Plan [Member] | Accounts Payable [Member] | Lease Obligations and Facility Exit Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Short-term accrued restructuring liability 54          
2019 Exit Plan [Member] | Other Accrued Expenses and Current Liabilities [Member] | Severance and Related Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Short-term accrued restructuring liability 2          
2019 Exit Plan [Member] | Accrued Employee Compensation and Benefits [Member] | Severance and Related Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Short-term accrued restructuring liability $ 902          
v3.19.3
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Assets:    
Derivative Assets $ 2,576 $ 1,078
Total assets 15,593 12,520
Liabilities:    
Derivative Liabilities 425 3,264
Total liabilities 425 3,264
Foreign Currency Contracts [Member]    
Assets:    
Derivative Assets 2,576 1,068
Liabilities:    
Derivative Liabilities 425 2,895
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 8,305 8,075
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 4,712 3,367
Embedded Derivatives [Member]    
Assets:    
Derivative Assets   10
Liabilities:    
Derivative Liabilities   369
Quoted Prices in Active Markets For Identical Assets Level 1 [Member]    
Assets:    
Total assets 13,017 11,442
Liabilities:    
Total liabilities 0 0
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Foreign Currency Contracts [Member]    
Assets:    
Derivative Assets 0 0
Liabilities:    
Derivative Liabilities 0 0
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 8,305 8,075
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | 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 4,712 3,367
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Embedded Derivatives [Member]    
Assets:    
Derivative Assets   0
Liabilities:    
Derivative Liabilities   0
Significant Other Observable Inputs Level 2 [Member]    
Assets:    
Total assets 2,576 1,068
Liabilities:    
Total liabilities 425 2,895
Significant Other Observable Inputs Level 2 [Member] | Foreign Currency Contracts [Member]    
Assets:    
Derivative Assets 2,576 1,068
Liabilities:    
Derivative Liabilities 425 2,895
Significant Other Observable Inputs Level 2 [Member] | 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 0 0
Significant Other Observable Inputs Level 2 [Member] | 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 0 0
Significant Other Observable Inputs Level 2 [Member] | Embedded Derivatives [Member]    
Assets:    
Derivative Assets   0
Liabilities:    
Derivative Liabilities   0
Significant Unobservable Inputs Level 3 [Member]    
Assets:    
Total assets 0 10
Liabilities:    
Total liabilities 0 369
Significant Unobservable Inputs Level 3 [Member] | Foreign Currency Contracts [Member]    
Assets:    
Derivative Assets 0 0
Liabilities:    
Derivative Liabilities 0 0
Significant Unobservable Inputs Level 3 [Member] | 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 0 0
Significant Unobservable Inputs Level 3 [Member] | 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 $ 0 0
Significant Unobservable Inputs Level 3 [Member] | Embedded Derivatives [Member]    
Assets:    
Derivative Assets   10
Liabilities:    
Derivative Liabilities   $ 369
v3.19.3
Fair Value - Rollforward of Net Asset (Liability) Activity of Fair Value of Embedded Derivatives (Detail) - Embedded Derivatives [Member] - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]      
Balance at the beginning of the period $ (598) $ (359) $ (527)
Settlements 38   118
Effect of foreign currency (1)   13
Balance at the end of the period (402)   (402)
Accounting Standards Update 2016-02 [Member]      
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]      
Derecognition of embedded derivatives   $ 359  
Other Income (Expense), Net [Member]      
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]      
Gains (losses) recognized in "Other income (expense), net" 159   (6)
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]      
Change in unrealized gains (losses) included in "Other income (expense), net" related to embedded derivatives held at the end of the period $ 153   $ (19)
v3.19.3
Fair Value - Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]      
Impairment of long-lived assets $ (555) $ (1,711) $ (9,256)
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Americas [Member]      
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]      
Operating lease right-of-use assets   (1,368)  
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Property and Equipment [Member] | Americas [Member]      
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]      
Impairment of long-lived assets $ (555) $ (343) $ (9,256)
v3.19.3
Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 293,056 $ 294,093
Accumulated Amortization (132,577) (120,062)
Net Intangibles $ 160,479 $ 174,031
Weighted Average Amortization Period (years) 5 years 5 years
Customer Relationships [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 189,177 $ 189,697
Accumulated Amortization (117,027) (106,502)
Net Intangibles $ 72,150 $ 83,195
Weighted Average Amortization Period (years) 10 years 10 years
Trade Name and Trademarks [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 19,093 $ 19,236
Accumulated Amortization (12,310) (10,594)
Net Intangibles $ 6,783 $ 8,642
Weighted Average Amortization Period (years) 8 years 8 years
Non-Compete Agreements [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 2,714 $ 2,746
Accumulated Amortization (2,088) (1,724)
Net Intangibles $ 626 $ 1,022
Weighted Average Amortization Period (years) 3 years 3 years
Content Library [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 492 $ 517
Accumulated Amortization $ (492) $ (517)
Weighted Average Amortization Period (years) 2 years 2 years
Proprietary Software [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 870 $ 1,040
Accumulated Amortization (660) (725)
Net Intangibles $ 210 $ 315
Weighted Average Amortization Period (years) 5 years 4 years
Domain Names Not Subject To Amortization [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 80,710 $ 80,857
Net Intangibles $ 80,710 $ 80,857
v3.19.3
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail)
$ in Thousands
Sep. 30, 2019
USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]  
2019 (remainder of the year) $ 4,054
2020 13,897
2021 9,312
2022 8,035
2023 7,205
2024 6,960
2025 and thereafter $ 30,306
v3.19.3
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Goodwill [Line Items]    
Beginning Balance, Goodwill Net $ 302,517 $ 269,265
Acquisition-Related 1,078  
Acquisition-Related   38,536
Effect of Foreign Currency 205 (5,284)
Ending Balance, Goodwill Net 303,800 302,517
Americas [Member]    
Goodwill [Line Items]    
Beginning Balance, Goodwill Net 255,436 258,496
Acquisition-Related 1,202  
Acquisition-Related   2,175
Effect of Foreign Currency 1,799 (5,235)
Ending Balance, Goodwill Net 258,437 255,436
EMEA [Member]    
Goodwill [Line Items]    
Beginning Balance, Goodwill Net 47,081 10,769
Acquisition-Related (124)  
Acquisition-Related   36,361
Effect of Foreign Currency (1,594) (49)
Ending Balance, Goodwill Net $ 45,363 $ 47,081
v3.19.3
Goodwill and Intangible Assets - Additional Information (Detail)
9 Months Ended
Sep. 30, 2019
USD ($)
Reporting_Unit
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Goodwill [Line Items]      
Number of reporting units | Reporting_Unit 7    
Number of reporting units, fair value in excess of carrying value | Reporting_Unit 3    
Goodwill $ 303,800,000 $ 302,517,000 $ 269,265,000
Clearlink [Member]      
Goodwill [Line Items]      
Goodwill Impairment Loss 0    
Goodwill 74,100,000    
Symphony [Member]      
Goodwill [Line Items]      
Goodwill Impairment Loss 0    
Goodwill 35,700,000    
LATAM [Member]      
Goodwill [Line Items]      
Goodwill Impairment Loss 0    
Goodwill 19,200,000    
Qelp [Member]      
Goodwill [Line Items]      
Goodwill Impairment Loss 0    
Goodwill $ 9,700,000    
v3.19.3
Financial Derivatives - Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges (Detail) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]    
Deferred gains (losses) in AOCI $ 1,553 $ (1,825)
Tax on deferred gains (losses) in AOCI (47) (39)
Deferred gains (losses) in AOCI, net of taxes 1,506 $ (1,864)
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months $ 1,553  
v3.19.3
Financial Derivatives - Outstanding Foreign Currency Forward Contracts, Options and Embedded Derivatives (Detail) - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2018
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 $ 77,000 $ 26,250
Settle Through Date Sep. 30, 2020 Dec. 31, 2019
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | US Dollars/Philippine Pesos [Member]    
Derivative [Line Items]    
Notional Amount   $ 39,000
Settle Through Date   Sep. 30, 2019
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 $ 27,000 $ 67,000
Settle Through Date Jun. 30, 2020 Dec. 31, 2019
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Hungarian Forints [Member]    
Derivative [Line Items]    
Notional Amount $ 752  
Settle Through Date Dec. 31, 2019  
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Romanian Leis [Member]    
Derivative [Line Items]    
Notional Amount $ 4,142  
Settle Through Date Dec. 31, 2019  
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Forwards [Member]    
Derivative [Line Items]    
Notional Amount $ 25,161 $ 19,261
Settle Through Date Nov. 30, 2021 Nov. 30, 2021
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member]    
Derivative [Line Items]    
Notional Amount   $ 14,069
Settle Through Date   Apr. 30, 2030
v3.19.3
Financial Derivatives - Additional Information (Detail) - USD ($)
9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]    
Maximum amount of loss due to credit risk $ 2,600,000 $ 1,100,000
Total net settlement amount asset positions 2,400,000 1,100,000
Total net settlement amount liability positions $ 200,000 $ 2,900,000
v3.19.3
Financial Derivatives - Derivative Instruments Fair Value (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Derivatives, Fair Value [Line Items]    
Derivative Assets $ 2,576 $ 1,078
Derivative Liabilities 425 3,264
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 81 30
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Deferred Charges and Other Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 137  
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 397 247
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Long-Term Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities   44
Derivatives Not Designated as Hedging Instruments [Member] | Embedded Derivatives [Member] | Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets   10
Derivatives Not Designated as Hedging Instruments [Member] | Embedded Derivatives [Member] | Other Accrued Expenses and Current Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities   8
Derivatives Not Designated as Hedging Instruments [Member] | Embedded Derivatives [Member] | Other Long-Term Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities   361
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 2,358 1,038
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Accrued Expenses and Current Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities $ 28 $ 2,604
v3.19.3
Financial Derivatives - Effect of Company's Derivative Instruments (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]        
Revenues $ 397,547 $ 399,333 $ 1,189,478 $ 1,210,489
Gains (losses) recognized from derivatives (363) (380) (828) (1,807)
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Gains (losses) recognized in AOCI: (36) (1,839) 4,733 (4,840)
Revenues [Member] | Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Gains (losses) reclassified from AOCI: 1,134 183 1,264 619
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Contracts [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Gains (losses) recognized from derivatives $ (363) (539) $ (828) (1,801)
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Gains (losses) recognized from derivatives   $ 159   $ (6)
v3.19.3
Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) - Mutual Funds [Member] - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Mutual funds, Cost $ 9,455 $ 8,864
Other Current Assets [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Mutual funds, Fair Value $ 13,017 $ 11,442
v3.19.3
Investments Held in Rabbi Trust - Additional Information (Detail)
Sep. 30, 2019
Equity-Based Securities [Member]  
Schedule of Trading Securities and Other Trading Assets [Line Items]  
Mutual funds held in rabbi trust 64.00%
Debt-Based Securities [Member]  
Schedule of Trading Securities and Other Trading Assets [Line Items]  
Mutual funds held in rabbi trust 36.00%
v3.19.3
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 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Schedule of Trading Securities and Other Trading Assets [Line Items]        
Net realized gains (losses) from sale of trading securities $ 62 $ 10 $ 128 $ 42
Dividend and interest income 35 31 117 99
Net unrealized holding gains (losses) (56) 366 1,402 383
Net investment income (losses) $ 41 $ 407 $ 1,647 $ 524
v3.19.3
Borrowings - Additional Information (Detail) - USD ($)
1 Months Ended 9 Months Ended
Jan. 31, 2018
Sep. 30, 2019
Sep. 30, 2018
Feb. 14, 2019
Dec. 31, 2018
May 12, 2015
Line of Credit Facility [Line Items]            
Outstanding borrowings   $ 77,000,000     $ 102,000,000  
Debt issuance costs paid   1,098,000        
Long-term debt repaid   $ 37,000,000 $ 220,000,000      
Revolving Credit Facility [Member] | 2019 Credit Agreement [Member]            
Line of Credit Facility [Line Items]            
Maximum borrowing capacity       $ 500,000,000    
Line of credit facility, expiration date   Feb. 14, 2024        
Outstanding borrowings   $ 77,000,000.0        
Credit agreement customary fees description   the Company is required to pay certain customary fees, including a commitment fee determined quarterly based on the Company’s leverage ratio and due quarterly in arrears as calculated on the average unused amount of the 2019 Credit Agreement.        
Debt issuance costs paid   $ 1,100,000        
Revolving Credit Facility [Member] | 2019 Credit Agreement [Member] | Non-Voting Capital Stock Direct Foreign Subsidiaries [Member]            
Line of Credit Facility [Line Items]            
Percentage of capital stock pledged under credit agreement   100.00%        
Revolving Credit Facility [Member] | 2019 Credit Agreement [Member] | Voting Capital Stock Direct Foreign Subsidiaries [Member]            
Line of Credit Facility [Line Items]            
Percentage of capital stock pledged under credit agreement   65.00%        
Revolving Credit Facility [Member] | 2015 Credit Agreement [Member]            
Line of Credit Facility [Line Items]            
Maximum borrowing capacity           $ 440,000,000
Outstanding borrowings         $ 102,000,000.0  
Debt issuance costs, net       300,000    
Long-term debt repaid $ 175,000,000.0          
Alternate-Currency Sub-Facility [Member] | 2019 Credit Agreement [Member]            
Line of Credit Facility [Line Items]            
Maximum borrowing capacity       200,000,000    
Swingline Sub-Facility [Member] | 2019 Credit Agreement [Member]            
Line of Credit Facility [Line Items]            
Maximum borrowing capacity       15,000,000    
Letter of Credit [Member] | 2019 Credit Agreement [Member]            
Line of Credit Facility [Line Items]            
Maximum borrowing capacity       $ 15,000,000    
v3.19.3
Borrowings - Information Related to Credit Agreements (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Line Of Credit Facility [Abstract]        
Average daily utilization $ 91,935 $ 101,087 $ 92,495 $ 107,454
Interest expense $ 899 $ 923 $ 2,783 $ 2,839
Weighted average interest rate 3.90% 3.60% 4.00% 3.60%
v3.19.3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance $ 826,609 $ 796,479
Ending Balance 838,151 826,609
Foreign Currency Translation Adjustments [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance (58,253) (36,315)
Pre-tax amount (7,048) (22,158)
Foreign currency translation 56 220
Ending Balance (65,245) (58,253)
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 (1,864) 2,471
Pre-tax amount 4,733 (4,287)
Tax (provision) benefit (85) 84
Reclassification of (gain) loss to net income (1,186) 6
Foreign currency translation (92) (138)
Ending Balance 1,506 (1,864)
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance 2,256 1,574
Pre-tax amount   783
Tax (provision) benefit 10 47
Reclassification of (gain) loss to net income (72) (66)
Foreign currency translation 36 (82)
Ending Balance 2,230 2,256
Unrealized Gain (Loss) on Postretirement Obligation [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance 40 120
Reclassification of (gain) loss to net income (15) (80)
Ending Balance 25 40
Accumulated Other Comprehensive Income (Loss) [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance (56,775) (31,104)
Pre-tax amount (2,315) (25,662)
Tax (provision) benefit (75) 131
Reclassification of (gain) loss to net income (1,273) (140)
Ending Balance $ (60,438) $ (56,775)
v3.19.3
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Pre-tax amount $ 23,794 $ 14,380 $ 53,898 $ 32,733
Tax (provision) benefit 5,689 628 12,837 855
Reclassification of gain (loss) to net income 18,105 13,752 41,061 31,878
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 1,130 302 1,273 817
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 (33) 19 (78) 43
Reclassification of gain (loss) to net income 1,101 202 1,186 662
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 3 9 9
Reclassification of gain (loss) to net income 24 16 72 51
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 1,134 183 1,264 619
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 21 13 63 42
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 $ 5 $ 84 $ 15 $ 104
v3.19.3
Income Taxes - Summary of Effective Tax Rates (Detail)
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Tax Disclosure [Abstract]        
Effective tax rate 23.90% 4.40% 23.80% 2.60%
v3.19.3
Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2017
Sep. 30, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax [Line Items]          
Statutory federal income tax rate 21.00%   21.00%   35.00%
Change in effective tax rate, tax settlements $ 1.9   $ 5.3    
2017 Tax Reform Act, provision for income tax   $ 32.7     $ 32.7
2017 Tax Reform Act, one-time transition tax on repatriation of foreign earnings   32.7     32.7
Undistributed earnings of foreign subsidiaries   531.8     531.8
2017 Tax Reform Act, foreign withholding taxes on certain anticipated distributions   1.0     1.0
2017 Tax Reform Act, provisional benefit related to remeasurement of certain deferred tax assets and liabilities   $ (1.0)     $ (1.0)
2017 Tax Reform Act, decrease in original provisional tax       $ (0.2)  
Canada Revenue Agency [Member]          
Income Tax [Line Items]          
Income tax benefit recognized on settlement of Canadian audit     $ (2.8)    
v3.19.3
Earnings Per Share - Numbers of Shares Used in Earnings Per Share Computation (Detail) - shares
shares in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Basic:        
Weighted average common shares outstanding 41,190 42,136 41,808 42,070
Diluted:        
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust 117 68 100 131
Total weighted average diluted shares outstanding 41,307 42,204 41,908 42,201
Anti-dilutive shares excluded from the diluted earnings per share calculation 52 23 174 11
v3.19.3
Earnings Per Share - Additional Information (Detail) - 2011 Share Repurchase Program [Member] - shares
3 Months Ended 9 Months Ended 97 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Sep. 30, 2019
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 369,000 1,140,000 6,400,000    
Increase in shares authorized for repurchase       5,000,000.0  
v3.19.3
Earnings Per Share - Shares Repurchased (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended 97 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Sep. 30, 2019
Sep. 30, 2019
Schedule Of Shares Repurchased [Line Items]        
Total Cost of Shares Repurchased $ 10,103 $ 20,178 $ 30,281  
Minimum [Member]        
Schedule Of Shares Repurchased [Line Items]        
Range of Prices Paid Per Share $ 26.81   $ 24.72  
Maximum [Member]        
Schedule Of Shares Repurchased [Line Items]        
Range of Prices Paid Per Share $ 28.00   $ 28.00  
2011 Share Repurchase Program [Member]        
Schedule Of Shares Repurchased [Line Items]        
Total Number of Shares Repurchased 369   1,140 6,400
v3.19.3
Commitments and Loss Contingency - Additional Information (Detail)
9 Months Ended
Sep. 30, 2019
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 $ 1,500,000
v3.19.3
Defined Benefit Pension Plan and Postretirement Benefits - Net Periodic Benefit Cost for Pension Plans (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Defined Benefit Plan Net Periodic Benefit Cost [Abstract]        
Service cost $ 98 $ 106 $ 296 $ 329
Interest cost 62 46 186 144
Recognized actuarial (gains) (21) (13) (63) (42)
Net periodic benefit cost $ 139 $ 139 $ 419 $ 431
v3.19.3
Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail)
9 Months Ended
Sep. 30, 2019
Pension Plans, Postretirement and Other Employee Benefits [Line Items]  
Percentage of employer's contribution based on participants contribution 50.00%
Maximum [Member]  
Pension Plans, Postretirement and Other Employee Benefits [Line Items]  
Percentage of employer's contribution based on participants compensation 2.00%
v3.19.3
Defined Benefit Pension Plan and Postretirement Benefits - Company's Contributions to Employee Retirement Savings Plans (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Compensation And Retirement Disclosure [Abstract]        
401(k) plan contributions $ 410 $ 392 $ 1,295 $ 1,195
v3.19.3
Defined Benefit Pension Plan and Postretirement Benefits - Post-Retirement Benefit Obligation and Unrealized Gain (Losses) (Detail) - Split-Dollar Life Insurance Arrangement [Member] - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]    
Postretirement benefit obligation $ 6 $ 12
Unrealized gains (losses) in AOCI $ 25 $ 40
v3.19.3
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 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
General and Administrative [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation (expense) $ (1,504) $ (1,567) $ (5,594) $ (5,317)
Income Taxes [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Income tax benefit $ 361 $ 376 $ 1,343 $ 1,276
v3.19.3
Stock-Based Compensation - Additional Information (Detail) - 2011 Equity Incentive Plan [Member] - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Performance-Based Restricted Shares [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares granted   338,732
Weighted average grant-date fair value   $ 28.43
Employment-Based Restricted Stock Units [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares granted   169,367
Weighted average grant-date fair value   $ 28.43
Acquisition-Related Restricted Shares [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares vested 35,577 35,577
Fair value of restricted stock units vested $ 1.1 $ 1.1
v3.19.3
Segments and Geographic Information - Additional Information (Detail)
9 Months Ended
Sep. 30, 2019
Segment
Region
Segment Reporting [Abstract]  
Number of operating regions | Region 2
Number of reportable segments | Segment 2
v3.19.3
Segments and Geographic Information - Company's Reportable Segments (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Segment Reporting Information [Line Items]        
Revenues $ 397,547 $ 399,333 $ 1,189,478 $ 1,210,489
Percentage of revenues 100.00% 100.00% 100.00% 100.00%
Depreciation, net $ 12,449 $ 14,072 $ 39,398 $ 43,468
Amortization of intangibles 4,103 3,638 12,516 11,480
Income (loss) from operations 24,706 14,446 56,713 35,190
Total other income (expense), net (912) (66) (2,815) (2,457)
Income taxes (5,689) (628) (12,837) (855)
Net income 18,105 13,752 41,061 31,878
Americas [Member]        
Segment Reporting Information [Line Items]        
Revenues 318,097 328,762 953,181 996,524
Americas [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 318,097 $ 328,762 $ 953,181 $ 996,524
Percentage of revenues 80.00% 82.30% 80.10% 82.30%
Depreciation, net $ 10,086 $ 11,838 $ 32,252 $ 36,856
Amortization of intangibles 3,289 3,439 10,015 10,846
Income (loss) from operations 34,516 25,666 91,168 71,354
EMEA [Member]        
Segment Reporting Information [Line Items]        
Revenues 79,427 70,543 236,231 213,890
EMEA [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 79,427 $ 70,543 $ 236,231 $ 213,890
Percentage of revenues 20.00% 17.70% 19.90% 17.70%
Depreciation, net $ 1,611 $ 1,473 $ 4,865 $ 4,360
Amortization of intangibles 814 199 2,501 634
Income (loss) from operations 5,688 5,098 11,840 11,957
Other Segment [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 23 $ 28 $ 66 $ 75
Percentage of revenues 0.00% 0.00% 0.00% 0.00%
Depreciation, net $ 752 $ 761 $ 2,281 $ 2,252
Income (loss) from operations (15,498) (16,318) (46,295) (48,121)
Total other income (expense), net (912) (66) (2,815) (2,457)
Income taxes $ (5,689) $ (628) $ (12,837) $ (855)
v3.19.3
Segments and Geographic Information - Operation by Geographic Location (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Segment Reporting Information [Line Items]        
Revenues $ 397,547 $ 399,333 $ 1,189,478 $ 1,210,489
Americas [Member]        
Segment Reporting Information [Line Items]        
Revenues 318,097 328,762 953,181 996,524
Americas [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues 318,097 328,762 953,181 996,524
Americas [Member] | Operating Segments [Member] | United States [Member]        
Segment Reporting Information [Line Items]        
Revenues 144,698 161,429 451,466 498,523
Americas [Member] | Operating Segments [Member] | The Philippines [Member]        
Segment Reporting Information [Line Items]        
Revenues 65,560 57,953 180,431 174,610
Americas [Member] | Operating Segments [Member] | Costa Rica [Member]        
Segment Reporting Information [Line Items]        
Revenues 31,228 33,120 93,524 96,168
Americas [Member] | Operating Segments [Member] | Canada [Member]        
Segment Reporting Information [Line Items]        
Revenues 24,815 25,549 74,885 77,566
Americas [Member] | Operating Segments [Member] | El Salvador [Member]        
Segment Reporting Information [Line Items]        
Revenues 20,904 20,732 61,447 61,327
Americas [Member] | Operating Segments [Member] | China [Member]        
Segment Reporting Information [Line Items]        
Revenues 8,681 8,337 26,489 25,834
Americas [Member] | Operating Segments [Member] | Australia [Member]        
Segment Reporting Information [Line Items]        
Revenues 7,425 8,619 22,382 24,021
Americas [Member] | Operating Segments [Member] | Mexico [Member]        
Segment Reporting Information [Line Items]        
Revenues 7,016 6,221 20,648 18,171
Americas [Member] | Operating Segments [Member] | Colombia [Member]        
Segment Reporting Information [Line Items]        
Revenues 4,513 4,704 13,957 13,395
Americas [Member] | Operating Segments [Member] | Other [Member]        
Segment Reporting Information [Line Items]        
Revenues 3,257 2,098 7,952 6,909
EMEA [Member]        
Segment Reporting Information [Line Items]        
Revenues 79,427 70,543 236,231 213,890
EMEA [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues 79,427 70,543 236,231 213,890
EMEA [Member] | Operating Segments [Member] | Other [Member]        
Segment Reporting Information [Line Items]        
Revenues 16,508 13,636 48,583 40,966
EMEA [Member] | Operating Segments [Member] | Germany [Member]        
Segment Reporting Information [Line Items]        
Revenues 23,471 22,448 70,148 69,027
EMEA [Member] | Operating Segments [Member] | Sweden [Member]        
Segment Reporting Information [Line Items]        
Revenues 12,850 13,422 39,891 41,226
EMEA [Member] | Operating Segments [Member] | United Kingdom [Member]        
Segment Reporting Information [Line Items]        
Revenues 18,141 12,333 52,759 37,640
EMEA [Member] | Operating Segments [Member] | Romania [Member]        
Segment Reporting Information [Line Items]        
Revenues 8,457 8,704 24,850 25,031
Other Segment [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 23 $ 28 $ 66 $ 75
v3.19.3
Other Income (Expense) - Other Income (Expense), Net (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Other Nonoperating Income Expense [Abstract]        
Foreign currency transaction gains (losses) $ 430 $ 1,066 $ (107) $ 3,155
Gains (losses) on derivative instruments not designated as hedges (363) (380) (828) (1,807)
Other miscellaneous income (expense) (163) (174) (690) (1,335)
Other income (expense) (55) 919 22 537
Other Income (Expense), Net [Member]        
Other Nonoperating Income Expense [Abstract]        
Net investment gains (losses) on investments held in rabbi trust $ 41 $ 407 $ 1,647 $ 524
v3.19.3
Related Party Transactions - Additional Information (Detail) - USD ($)
1 Months Ended 3 Months Ended 9 Months Ended
Jan. 31, 2008
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Schedule of Other Related Party Transactions [Line Items]          
Duration of lease 20 years        
John H. Sykes [Member]          
Schedule of Other Related Party Transactions [Line Items]          
Payment to landlord under the lease terms   $ 100,000 $ 100,000 $ 400,000 $ 300,000
Related party transaction, description       In January 2008, the Company entered into a lease for a customer engagement center located in Kingstree, South Carolina. The landlord, Kingstree Office One, LLC, is an entity controlled by John H. Sykes, the founder, former Chairman and former Chief Executive Officer of the Company and the father of Charles Sykes, President and Chief Executive Officer of the Company. The lease payments on the 20-year lease were negotiated at or below market rates, and the lease is cancellable at the option of the Company.  
Equity Method Investee [Member] | XSell Technologies Inc [Member]          
Schedule of Other Related Party Transactions [Line Items]          
Related party transaction, description       The Company contracted to receive services from XSell, an equity method investee, for $0.1 million during the three months ended September 30, 2018 (none in 2019), and less than $0.1 million and $0.1 million during the nine months ended September 30, 2019 and 2018, respectively.  These related party transactions occurred in the normal course of business on terms and conditions that are similar to those of transactions with unrelated parties and, therefore, were measured at the exchange amount.  
Related party transaction with equity method investee   $ 0 $ 100,000   $ 100,000
Equity Method Investee [Member] | XSell Technologies Inc [Member] | Maximum [Member]          
Schedule of Other Related Party Transactions [Line Items]          
Related party transaction with equity method investee       $ 100,000  
v3.19.3
Subsequent Event - Additional Information (Detail) - Fort Smith, Arkansas [Member] - Tornado [Member] - USD ($)
$ in Millions
3 Months Ended
Nov. 05, 2019
Dec. 31, 2019
May 31, 2019
Subsequent Event [Line Items]      
Insurance recovery claim amount     $ 2.9
Minimum [Member] | Scenario Forecast [Member]      
Subsequent Event [Line Items]      
Net (gain) on insurance settlement   $ 0.8  
Maximum [Member] | Scenario Forecast [Member]      
Subsequent Event [Line Items]      
Net (gain) on insurance settlement   $ 1.3  
Subsequent Event [Member]      
Subsequent Event [Line Items]      
Insurance claim settlement date Nov. 05, 2019