SYKES ENTERPRISES INC, 10-Q filed on 8/4/2020
Quarterly Report
v3.20.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2020
Jul. 16, 2020
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2020  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q2  
Trading Symbol SYKE  
Entity Registrant Name Sykes Enterprises, Incorporated  
Entity Central Index Key 0001010612  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Shell Company false  
Entity File Number 0-28274  
Entity Tax Identification Number 56-1383460  
Entity Address, Address Line One 400 North Ashley Drive  
Entity Address, Address Line Two Suite 2800  
Entity Address, City or Town Tampa  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 33602  
City Area Code 813  
Local Phone Number 274-1000  
Entity Filer Category Large Accelerated Filer  
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Common Stock, Shares Outstanding   40,055,088
Entity Interactive Data Current Yes  
Title of 12(b) Security Common Stock, $0.01 par value  
Security Exchange Name NASDAQ  
Entity Incorporation, State or Country Code FL  
Document Quarterly Report true  
Document Transition Report false  
v3.20.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 129,050 $ 127,246
Receivables, net of allowance of $4.2 million and $3.5 million, respectively 383,512 390,147
Prepaid expenses 20,891 20,868
Other current assets 18,626 20,525
Total current assets 552,079 558,786
Property and equipment, net 119,412 125,990
Operating lease right-of-use assets 188,676 205,112
Goodwill, net 306,712 311,247
Intangibles, net 148,573 158,420
Deferred charges and other assets 54,381 55,945
Total assets 1,369,833 1,415,500
Current liabilities:    
Accounts payable 27,532 33,591
Accrued employee compensation and benefits 116,726 109,591
Income taxes payable 7,737 3,637
Deferred revenue and customer liabilities 24,294 26,621
Operating lease liabilities 54,948 50,863
Other accrued expenses and current liabilities 28,770 29,330
Total current liabilities 260,007 253,633
Long-term debt 49,000 73,000
Long-term income tax liabilities 20,469 22,286
Long-term operating lease liabilities 147,312 166,810
Other long-term liabilities 30,260 25,296
Total liabilities 507,048 541,025
Commitments and loss contingencies (Note 12)
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; 40,055 and 41,549 shares issued, respectively 401 416
Additional paid-in capital 291,814 288,935
Retained earnings 634,943 634,668
Accumulated other comprehensive income (loss) (61,680) (47,001)
Treasury stock at cost: 133 and 128 shares, respectively (2,693) (2,543)
Total shareholders' equity 862,785 874,475
Total liabilities and shareholders' equity $ 1,369,833 $ 1,415,500
v3.20.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Statement Of Financial Position [Abstract]    
Accounts Receivable, Allowance for Credit Loss $ 4.2 $ 3.5
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 40,055,000 41,549,000
Treasury stock, shares 133,000 128,000
v3.20.2
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Statement [Abstract]        
Revenues $ 416,833 $ 389,006 $ 827,999 $ 791,931
Operating expenses:        
Direct salaries and related costs 268,433 252,161 535,378 513,889
General and administrative 102,664 104,282 205,911 208,962
Depreciation, net 12,630 13,052 25,091 26,949
Amortization of intangibles 4,093 4,127 8,212 8,413
Impairment of long-lived assets 1,800 129 1,800 1,711
Total operating expenses 389,620 373,751 776,392 759,924
Income from operations 27,213 15,255 51,607 32,007
Other income (expense):        
Interest income 165 192 428 377
Interest (expense) (560) (1,179) (1,280) (2,357)
Other income (expense), net 1,797 (533) (2,996) 77
Total other income (expense), net 1,402 (1,520) (3,848) (1,903)
Income before income taxes 28,615 13,735 47,759 30,104
Income taxes 6,385 2,466 11,611 7,148
Net income $ 22,230 $ 11,269 $ 36,148 $ 22,956
Net income per common share:        
Basic $ 0.55 $ 0.27 $ 0.89 $ 0.55
Diluted $ 0.55 $ 0.27 $ 0.88 $ 0.54
Weighted average common shares outstanding:        
Basic 40,318 42,038 40,726 42,107
Diluted 40,380 42,094 40,857 42,200
v3.20.2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]        
Net income $ 22,230 $ 11,269 $ 36,148 $ 22,956
Other comprehensive income (loss), net of taxes:        
Foreign currency translation adjustments 8,311 2,339 (13,039) 3,701
Unrealized gain (loss) on cash flow hedging instruments, net of taxes (253) 2,828 (1,595) 4,500
Unrealized actuarial gain (loss) related to pension liability, net of taxes 16 35 (1) 20
Unrealized gain (loss) on postretirement obligation, net of taxes (22) (5) (44) (10)
Other comprehensive income (loss), net of taxes 8,052 5,197 (14,679) 8,211
Comprehensive income (loss) $ 30,282 $ 16,466 $ 21,469 $ 31,167
v3.20.2
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
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          
Cumulative effect of accounting change at Dec. 31, 2018   $ 110       $ 110    
Accounting Standards Update [Extensible List]   us-gaap:AccountingStandardsUpdate201602Member       us-gaap:AccountingStandardsUpdate201602Member    
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          
Cumulative effect of accounting change at Dec. 31, 2018   $ 110       $ 110    
Repurchase of common stock (20,178)              
Comprehensive income (loss) 31,167              
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          
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          
Beginning Balance at Dec. 31, 2019 874,475   $ 416 288,935 634,668   (47,001) (2,543)
Beginning Balance, shares at Dec. 31, 2019     41,549          
Stock-based compensation expense 1,860     1,860        
Issuance of common stock under equity award plans, net of forfeitures     $ (2) 69       (67)
Issuance of common stock under equity award plans, net of forfeitures, Share     (146)          
Shares repurchased for tax withholding on equity awards (1,009)     (1,009)        
Shares repurchased for tax withholding on equity awards, Share     (39)          
Repurchase of common stock (22,909)             (22,909)
Retirement of treasury stock     $ (9) (26) (22,874)     22,909
Retirement of treasury stock, shares     (860)          
Comprehensive income (loss) (8,813)       13,918   (22,731)  
Ending Balance at Mar. 31, 2020 843,604   $ 405 289,829 625,712   (69,732) (2,610)
Ending Balance, shares at Mar. 31, 2020     40,504          
Beginning Balance at Dec. 31, 2019 874,475   $ 416 288,935 634,668   (47,001) (2,543)
Beginning Balance, shares at Dec. 31, 2019     41,549          
Repurchase of common stock (35,928)              
Comprehensive income (loss) 21,469              
Ending Balance at Jun. 30, 2020 862,785   $ 401 291,814 634,943   (61,680) (2,693)
Ending Balance, shares at Jun. 30, 2020     40,055          
Beginning Balance at Mar. 31, 2020 843,604   $ 405 289,829 625,712   (69,732) (2,610)
Beginning Balance, shares at Mar. 31, 2020     40,504          
Stock-based compensation expense 2,042     2,042        
Issuance of common stock under equity award plans, net of forfeitures     $ 1 82       (83)
Issuance of common stock under equity award plans, net of forfeitures, Share     57          
Shares repurchased for tax withholding on equity awards (124)     (124)        
Shares repurchased for tax withholding on equity awards, Share     (6)          
Repurchase of common stock (13,019)             (13,019)
Retirement of treasury stock     $ (5) (15) (12,999)     13,019
Retirement of treasury stock, shares     (500)          
Comprehensive income (loss) 30,282       22,230   8,052  
Ending Balance at Jun. 30, 2020 $ 862,785   $ 401 $ 291,814 $ 634,943   $ (61,680) $ (2,693)
Ending Balance, shares at Jun. 30, 2020     40,055          
v3.20.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities:    
Net income $ 36,148 $ 22,956
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 25,206 27,066
Amortization of intangibles 8,212 8,413
Amortization of deferred grants (170) (181)
Impairment losses 1,800 1,711
Unrealized foreign currency transaction (gains) losses, net 510 (603)
Stock-based compensation expense 3,902 4,090
Deferred income tax provision (benefit) 564 325
Bad debt expense (reversals) 1,129 68
Unrealized (gains) losses and premiums on financial instruments, net 665 (304)
(Earnings) losses from equity method investees 547 233
Other (104) 256
Changes in assets and liabilities, net of acquisitions:    
Receivables, net 294 (1,214)
Prepaid expenses (239) (1,122)
Other current assets (263) (896)
Deferred charges and other assets 238 (3,196)
Accounts payable (4,184) (2,824)
Income taxes receivable / payable 2,324 (5,225)
Accrued employee compensation and benefits 6,998 6,489
Other accrued expenses and current liabilities (279) 1,228
Deferred revenue and customer liabilities (1,666) (2,435)
Other long-term liabilities 6,585 1,086
Operating lease assets and liabilities (1,575) 415
Net cash provided by operating activities 86,642 56,336
Cash flows from investing activities:    
Capital expenditures (22,880) (16,390)
Other 592 284
Net cash (used for) investing activities (22,288) (16,106)
Cash flows from financing activities:    
Payments of long-term debt (47,000) (18,000)
Proceeds from issuance of long-term debt 23,000 8,000
Cash paid for repurchase of common stock (35,928) (20,178)
Shares repurchased for tax withholding on equity awards (1,133) (1,269)
Cash paid for loan fees related to long-term debt   (1,098)
Other   (4)
Net cash (used for) financing activities (61,061) (32,549)
Effects of exchange rates on cash, cash equivalents and restricted cash (1,795) 655
Net increase (decrease) in cash, cash equivalents and restricted cash 1,498 8,336
Cash, cash equivalents and restricted cash – beginning 129,185 130,231
Cash, cash equivalents and restricted cash – ending 130,683 138,567
Supplemental disclosures of cash flow information:    
Cash paid for amounts included in the measurement of operating lease liabilities 31,484 29,119
Cash paid during period for interest 1,009 1,874
Cash paid during period for income taxes 8,947 12,567
Non-cash transactions:    
Net right-of-use assets arising from new or remeasured operating lease liabilities 12,976 10,663
Property and equipment additions in accounts payable 4,978 2,663
Unrealized gain (loss) on postretirement obligation, net of taxes, in accumulated other comprehensive income (loss) $ (44) $ (10)
v3.20.2
Overview and Basis of Presentation
 6 Months Ended
Jun. 30, 2020
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 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.

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 six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2020. 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, 2019, as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2020.

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

Use of Estimates — The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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

Subsequent Events — Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. There were no material subsequent events that required recognition or disclosure in the accompanying condensed consolidated financial statements.

Cash, Cash Equivalents and Restricted Cash — Cash and cash equivalents consist of cash and highly liquid short-term investments, primarily held in non-interest-bearing investments which have original maturities of less than 90 days. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations.  

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

 

 

June 30, 2020

 

 

December 31, 2019

 

 

June 30, 2019

 

 

December 31, 2018

 

Cash and cash equivalents

$

129,050

 

 

$

127,246

 

 

$

136,631

 

 

$

128,697

 

Restricted cash included in "Other current assets"

 

318

 

 

 

568

 

 

 

566

 

 

 

149

 

Restricted cash included in "Deferred charges and

   other assets"

 

1,315

 

 

 

1,371

 

 

 

1,370

 

 

 

1,385

 

 

$

130,683

 

 

$

129,185

 

 

$

138,567

 

 

$

130,231

 

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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Customer-acquisition advertising costs

$

9,826

 

 

$

10,036

 

 

$

20,008

 

 

$

22,140

 

 

New Accounting Standards Not Yet Adopted

Income Taxes

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes (“ASU 2019-12”). These amendments simplify the accounting for income taxes by eliminating certain exceptions and also clarifying and amending certain aspects of existing guidance.  These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020.  Most of the amendments are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis.  Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company is currently evaluating the amendments in ASU 2019-12 but does not expect a material impact on its financial condition, results of operations, cash flows or disclosures.  The Company does not anticipate early adoption of ASU 2019-12.

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.

New Accounting Standards Recently Adopted

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 adopted ASU 2016-13 on January 1, 2020, using the modified retrospective transition method, which resulted in no cumulative-effect adjustment to be recognized to the opening balance of retained earnings. The prior period was not restated.  The Company’s adoption of ASU 2016-13 did not have a material impact on its financial condition, results of operations or cash flows as the credit losses associated with the Company’s trade receivables have historically been insignificant. See the description of the Company’s “Allowance for Doubtful Accounts” accounting policy in the “Significant Accounting Policies” section below.

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, Topic 815, 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’s adoption of ASU 2019-04 on January 1, 2020 did not have a material impact on its financial condition, results of operations, cash flows or disclosures.

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’s adoption of ASU 2018-03 on January 1, 2020 did not have a material impact on its disclosures.

Cloud Computing

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update.  The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company’s adoption of ASU 2018-15 on January 1, 2020 on a prospective basis did not have a material impact on its financial condition, results of operations, cash flows or disclosures. 

Significant Accounting Policies

With the exception of the change for the accounting of credit losses as a result of the adoption of ASU 2016-13, there have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Allowance for Doubtful Accounts

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

During the six months ended June 30, 2020, the Company recorded a $1.1 million increase to the allowance for credit losses related to its short-term trade receivables primarily as a result of deterioration in certain clients’ credit ratings reflecting current and expected economic conditions, and wrote off $0.4 million of the allowance for credit losses related to certain short-term trade receivables deemed to be uncollectible.

v3.20.2
Revenues
 6 Months Ended
Jun. 30, 2020
Revenue From Contract With Customer [Abstract]  
Revenues

Note 2. Revenues

Revenues from Contracts with Customers

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. RPA services revenues are primarily recognized over time using output methods such as per time and materials basis. Revenues from fulfillment services are recognized upon shipment to the customer and satisfaction of all obligations. Revenues from enterprise support services are recognized over time using output methods such as number of positions filled.

Disaggregated Revenues

The Company disaggregates its revenues from contracts with customers by service type and delivery location (see Note 15, Segments and Geographic Information), for each of its reportable segments, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by economic factors.

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

 

 

Three Months Ended June 30,

 

 

2020

 

 

2019

 

 

Amount

 

 

% of Revenue

 

 

Amount

 

 

% of Revenue

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

$

338,963

 

 

 

81.3

%

 

$

310,070

 

 

 

79.8

%

Other revenues

 

309

 

 

 

0.1

%

 

 

237

 

 

 

0.0

%

Total Americas

 

339,272

 

 

 

81.4

%

 

 

310,307

 

 

 

79.8

%

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

 

73,285

 

 

 

17.6

%

 

 

68,643

 

 

 

17.6

%

Other revenues

 

4,276

 

 

 

1.0

%

 

 

10,033

 

 

 

2.6

%

Total EMEA

 

77,561

 

 

 

18.6

%

 

 

78,676

 

 

 

20.2

%

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

—

 

 

 

0.0

%

 

 

23

 

 

 

0.0

%

Total Other

 

—

 

 

 

0.0

%

 

 

23

 

 

 

0.0

%

 

$

416,833

 

 

 

100.0

%

 

$

389,006

 

 

 

100.0

%

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

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

Amount

 

 

% of Revenue

 

 

Amount

 

 

% of Revenue

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

$

671,577

 

 

 

81.1

%

 

$

634,632

 

 

 

80.2

%

Other revenues

 

621

 

 

 

0.1

%

 

 

452

 

 

 

0.0

%

Total Americas

 

672,198

 

 

 

81.2

%

 

 

635,084

 

 

 

80.2

%

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

 

145,918

 

 

 

17.6

%

 

 

139,640

 

 

 

17.6

%

Other revenues

 

9,876

 

 

 

1.2

%

 

 

17,164

 

 

 

2.2

%

Total EMEA

 

155,794

 

 

 

18.8

%

 

 

156,804

 

 

 

19.8

%

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

7

 

 

 

0.0

%

 

 

43

 

 

 

0.0

%

Total Other

 

7

 

 

 

0.0

%

 

 

43

 

 

 

0.0

%

 

$

827,999

 

 

 

100.0

%

 

$

791,931

 

 

 

100.0

%

 

Trade Accounts Receivable

 

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

 

 

June 30, 2020

 

 

December 31, 2019

 

Trade accounts receivable, net, current (1)

$

368,693

 

 

$

375,136

 

Trade accounts receivable, net, noncurrent (2)

 

26,920

 

 

 

26,496

 

 

$

395,613

 

 

$

401,632

 

 

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

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

 

Deferred Revenue and Customer Liabilities

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

 

 

June 30, 2020

 

 

December 31, 2019

 

Deferred revenue

$

3,475

 

 

$

3,012

 

Customer arrangements with termination rights

 

14,554

 

 

 

15,024

 

Estimated refund liabilities

 

6,265

 

 

 

8,585

 

 

$

24,294

 

 

$

26,621

 

 

The Company expects to recognize the majority of its deferred revenue as of June 30, 2020 over the next 180 days. Revenues of $0.2 million and $0.3 million were recognized during the three months ended June 30, 2020 and 2019, respectively, and revenues of $2.9 million and $3.4 million were recognized during the six months ended June 30, 2020 and 2019, respectively, from amounts included in deferred revenue at December 31, 2019 and 2018, respectively.

The Company expects to recognize the majority of the customer arrangements with termination rights into revenue as the Company has not historically experienced a high rate of contract terminations.

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

v3.20.2
Leases
 6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Leases

Note 3. Leases

Adoption of ASC 842, Leases

On January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) and subsequent amendments (together, “ASC 842”) using the modified retrospective method and recognized a cumulative-effect adjustment to the opening balance of retained earnings.

The adoption of ASC 842 on January 1, 2019 required the gross up of historical deferred rent which resulted 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 six months ended June 30, 2019 was not material. The Company’s net cash provided by operating activities for the six months ended June 30, 2019 did not change due to the adoption of ASC 842.

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 June 30, 2020. The Company has no finance leases.

Lease costs, net of sublease income, of $15.5 million and $16.2 million for the three months ended June 30, 2020 and 2019, respectively, and $31.5 million and $32.1 million for the six months ended June 30, 2020 and 2019, respectively, were primarily included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Income.

Additional supplemental information related to leases was as follows:

 

June 30, 2020

 

 

December 31, 2019

 

Weighted average remaining lease term of operating leases

4.8 years

 

 

5.1 years

 

Weighted average discount rate of operating leases

 

3.5

%

 

 

3.7

%

Maturities of operating lease liabilities as of June 30, 2020 were as follows (in thousands):

 

Amount

 

2020 (remainder of the year)

$

28,288

 

2021

 

58,340

 

2022

 

44,905

 

2023

 

30,407

 

2024

 

21,307

 

2025 and thereafter

 

37,962

 

Total future lease payments

 

221,209

 

Less: Imputed interest

 

18,949

 

Present value of future lease payments

 

202,260

 

Less: Operating lease liabilities

 

54,948

 

Long-term operating lease liabilities

$

147,312

 

 
v3.20.2
Costs Associated with Exit or Disposal Activities
 6 Months Ended
Jun. 30, 2020
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 included closing customer engagement 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 engagement centers and consolidating leased space in various locations in the U.S. and Canada (the “Americas 2018 Exit Plan”). The Company finalized 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 resulted in general and administrative cost savings and lower depreciation expense.

The cumulative costs incurred to date related to cash and non-cash expenditures resulting from the Americas 2018 and 2019 Exit Plans are outlined below as of June 30, 2020 (in thousands):

 

 

Americas

2018 Exit Plan

 

 

Americas

2019 Exit Plan

 

Lease obligations and facility exit costs (1)

$

7,073

 

 

$

—

 

Severance and related costs (2)

 

3,426

 

 

 

191

 

Severance and related costs (1)

 

1,037

 

 

 

2,153

 

Non-cash impairment charges

 

5,875

 

 

 

1,582

 

Other non-cash charges

 

—

 

 

 

244

 

 

$

17,411

 

 

$

4,170

 

 

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

(2) Included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Statements of Operations.

The Company has paid a total of $12.8 million in cash through June 30, 2020, of which $10.5 million related to the Americas 2018 Exit Plan and $2.3 million related to the Americas 2019 Exit Plan.

The Americas 2018 and 2019 Exit Plan activity during the three and six months ended June 30, 2020 consisted of cash payments due under the respective plans.

 

The following table summarizes the accrued liability and related activity for the three months ended June 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

$

162

 

 

$

495

 

 

$

657

 

 

$

—

 

 

$

1,040

 

 

$

1,040

 

Charges (reversals) included in "Direct

   salaries and related costs"

 

—

 

 

 

(3

)

 

 

(3

)

 

 

—

 

 

 

184

 

 

 

184

 

Charges (reversals) included in "General

   and administrative"

 

—

 

 

 

(9

)

 

 

(9

)

 

 

54

 

 

 

1,079

 

 

 

1,133

 

Cash payments

 

(33

)

 

 

(261

)

 

 

(294

)

 

 

—

 

 

 

(742

)

 

 

(742

)

Balance at the end of the period

$

129

 

 

$

222

 

 

$

351

 

 

$

54

 

 

$

1,561

 

 

$

1,615

 

 

The following table summarizes the accrued liability and related activity for the six months ended June 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

)

 

 

10

 

 

 

6

 

 

 

54

 

 

 

2,169

 

 

 

2,223

 

Cash payments

 

(298

)

 

 

(602

)

 

 

(900

)

 

 

—

 

 

 

(799

)

 

 

(799

)

Balance sheet reclassifications (1)

 

(1,338

)

 

 

—

 

 

 

(1,338

)

 

 

—

 

 

 

—

 

 

 

—

 

Balance at the end of the period

$

129

 

 

$

222

 

 

$

351

 

 

$

54

 

 

$

1,561

 

 

$

1,615

 

 

(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.

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

 

 

June 30, 2020

 

 

December 31, 2019

 

 

June 30, 2020

 

 

December 31, 2019

 

Lease obligations and facility exit costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in "Other accrued expenses

   and current liabilities"

 

67

 

 

 

54

 

 

 

—

 

 

 

—

 

Included in "Other long-term liabilities"

 

—

 

 

 

27

 

 

 

—

 

 

 

—

 

 

 

67

 

 

 

81

 

 

 

—

 

 

 

—

 

Severance and related costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in "Accrued employee compensation

   and benefits"

 

—

 

 

 

6

 

 

 

—

 

 

 

479

 

Included in "Other accrued expenses

   and current liabilities"

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

481

 

 

$

67

 

 

$

87

 

 

$

—

 

 

$

481

 

 
v3.20.2
Fair Value
 6 Months Ended
Jun. 30, 2020
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.

 

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 consisted of the following (in thousands):

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

June 30, 2020

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

1,833

 

 

$

—

 

 

$

1,833

 

 

$

—

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

8,711

 

 

 

8,711

 

 

 

—

 

 

 

—

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

5,306

 

 

 

5,306

 

 

 

—

 

 

 

—

 

 

$

15,850

 

 

$

14,017

 

 

$

1,833

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

622

 

 

$

—

 

 

$

622

 

 

$

—

 

 

$

622

 

 

$

—

 

 

$

622

 

 

$

—

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

December 31, 2019

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

3,607

 

 

$

—

 

 

$

3,607

 

 

$

—

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

9,125

 

 

 

9,125

 

 

 

—

 

 

 

—

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

4,802

 

 

 

4,802

 

 

 

—

 

 

 

—

 

 

$

17,534

 

 

$

13,927

 

 

$

3,607

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

251

 

 

$

—

 

 

$

251

 

 

$

—

 

 

$

251

 

 

$

—

 

 

$

251

 

 

$

—

 

 

(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.

 

Non-Recurring Fair Value

 

Certain assets, under certain conditions, are measured at fair value on a nonrecurring basis utilizing Level 3 inputs, like those associated with acquired businesses, including goodwill, other intangible assets, other 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 June 30, 2020 and December 31, 2019.

 

The following table summarizes the total impairment losses in the accompanying Condensed Consolidated Statements of Operations related to nonrecurring fair value measurements of certain assets (no liabilities) (in thousands):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

$

760

 

 

$

—

 

 

$

760

 

 

$

343

 

Operating lease right-of-use assets

 

1,040

 

 

 

129

 

 

 

1,040

 

 

 

1,368

 

 

$

1,800

 

 

$

129

 

 

$

1,800

 

 

$

1,711

 

 

In connection with the closure of certain under-utilized customer engagement centers and the consolidation of leased space in the U.S., the Company recorded impairment charges during the three and six months ended June 30, 2020 related to the exit of leased facilities as well as leasehold improvements, equipment, furniture and fixtures which were not recoverable.

 

In connection with the closure of certain under-utilized customer engagement centers and the consolidation of leased space in the U.S. and Canada, the Company recorded impairment charges during the three and six months ended June 30, 2019 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 or Disposal Activities, for further information.
v3.20.2
Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2020
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 June 30, 2020 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

188,875

 

 

$

(126,829

)

 

$

62,046

 

 

 

10

 

Trade names and trademarks

 

19,123

 

 

 

(14,043

)

 

 

5,080

 

 

 

8

 

Non-compete agreements

 

923

 

 

 

(508

)

 

 

415

 

 

 

3

 

Content library

 

507

 

 

 

(507

)

 

 

—

 

 

 

2

 

Proprietary software

 

870

 

 

 

(765

)

 

 

105

 

 

 

5

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

80,927

 

 

 

—

 

 

 

80,927

 

 

N/A

 

 

$

291,225

 

 

$

(142,652

)

 

$

148,573

 

 

 

4

 

 

The following table presents the Company’s purchased intangible assets as of December 31, 2019 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

191,171

 

 

$

(121,074

)

 

$

70,097

 

 

 

10

 

Trade names and trademarks

 

19,380

 

 

 

(12,929

)

 

 

6,451

 

 

 

8

 

Non-compete agreements

 

2,769

 

 

 

(2,181

)

 

 

588

 

 

 

3

 

Content library

 

506

 

 

 

(506

)

 

 

—

 

 

 

2

 

Proprietary software

 

870

 

 

 

(695

)

 

 

175

 

 

 

5

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

81,109

 

 

 

—

 

 

 

81,109

 

 

N/A

 

 

$

295,805

 

 

$

(137,385

)

 

$

158,420

 

 

 

5

 

 

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to June 30, 2020 is as follows (in thousands):

 

 

Amount

 

2020 (remainder of the year)

$

5,706

 

2021

 

9,341

 

2022

 

8,057

 

2023

 

7,220

 

2024

 

6,975

 

2025

 

6,851

 

2026 and thereafter

 

23,496

 

 

Goodwill

Changes in goodwill for the six months ended June 30, 2020 consisted of the following (in thousands):

 

 

January 1, 2020

 

 

Acquisition-

Related

 

 

Effect of

Foreign

Currency

 

 

June 30, 2020

 

Americas

$

259,953

 

 

$

—

 

 

$

(2,038

)

 

$

257,915

 

EMEA

 

51,294

 

 

 

—

 

 

 

(2,497

)

 

 

48,797

 

 

$

311,247

 

 

$

—

 

 

$

(4,535

)

 

$

306,712

 

 

Changes in goodwill for the year ended December 31, 2019 consisted of the following (in thousands):

 

 

January 1, 2019

 

 

Acquisition-

Related  (1)

 

 

Effect of

Foreign

Currency

 

 

December 31, 2019

 

Americas

$

255,436

 

 

$

1,202

 

 

$

3,315

 

 

$

259,953

 

EMEA

 

47,081

 

 

 

2,421

 

 

 

1,792

 

 

 

51,294

 

 

$

302,517

 

 

$

3,623

 

 

$

5,107

 

 

$

311,247

 

 

(1) The year ended December 31, 2019 includes the impact of adjustments to acquired goodwill upon finalization of working capital adjustments and the tax analysis of WhistleOut’s and Symphony’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, Latin America 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 Latin America 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, Latin America and Qelp reporting units are at risk of future impairment if projected operating results are not met or other inputs into the fair value measurement model change. Symphony’s on-site consulting model has been negatively impacted by travel and shelter-in-place restrictions imposed by governments and businesses to reduce the spread of COVID-19. There is significant uncertainty regarding the length of time these restrictions will remain in place. An impairment charge may arise in the future if Symphony’s operations experience a prolonged delay in the resumption of its operations or a significant shift in client demand results from the economic downturn. As of June 30, 2020, the Company believes there was no impairment related to Symphony’s $39.0 million of goodwill.

As of June 30, 2020, the Company believes there were no indicators of impairment related to Clearlink’s $74.2 million of goodwill, Latin America’s $18.9 million of goodwill and Qelp’s $9.8 million of goodwill.
v3.20.2
Financial Derivatives
 6 Months Ended
Jun. 30, 2020
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):

 

 

June 30, 2020

 

 

December 31, 2019

 

Deferred gains (losses) in AOCI

$

740

 

 

$

2,221

 

Tax on deferred gains (losses) in AOCI

 

(45

)

 

 

69

 

Deferred gains (losses) in AOCI, net of taxes

$

695

 

 

$

2,290

 

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

   from AOCI during the next twelve months

$

690

 

 

 

 

 

 

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.  

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

 

 

June 30, 2020

 

December 31, 2019

 

Contract Type

Notional

Amount

in USD

 

 

Settle

Through

Date

 

Notional

Amount

in USD

 

 

Settle

Through

Date

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Options:

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

$

40,000

 

 

December 2020

 

$

74,000

 

 

December 2020

 

Forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Costa Rican Colones

 

64,000

 

 

August 2021

 

 

42,000

 

 

December 2020

 

Euros/Hungarian Forints

 

1,751

 

 

December 2020

 

 

—

 

 

 

—

 

Euros/Romanian Leis

 

7,556

 

 

December 2020

 

 

—

 

 

 

—

 

Non-designated hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Forwards

 

9,405

 

 

November 2021

 

 

19,295

 

 

November 2021

 

 

Master netting agreements exist with each respective counterparty to reduce credit risk by permitting net settlement of derivative positions. In the event of default by the Company or one of its counterparties, these agreements include a set-off clause that provides the non-defaulting party the right to net settle all derivative transactions, regardless of the currency and settlement date.  The maximum amount of loss due to credit risk that, based on gross fair value, the Company would incur if parties to the derivative transactions that make up the concentration failed to perform according to the terms of the contracts was $1.8 million and $3.6 million as of June 30, 2020 and December 31, 2019, respectively.  After consideration of these netting arrangements and offsetting positions by counterparty, the total net settlement amount as it relates to these positions are asset positions of $1.5 million and $3.4 million as of June 30, 2020 and December 31, 2019, respectively, and liability positions of $0.3 million and $0 as of June 30, 2020 and December 31, 2019, 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

 

June 30, 2020

 

 

December 31, 2019

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

$

1,678

 

 

$

3,051

 

Foreign currency contracts

 

Deferred charges and other assets

 

 

50

 

 

 

—

 

 

 

 

 

 

1,728

 

 

 

3,051

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

 

53

 

 

 

322

 

Foreign currency contracts

 

Deferred charges and other assets

 

 

52

 

 

 

234

 

Total derivative assets

 

 

 

$

1,833

 

 

$

3,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liabilities

 

 

 

Balance Sheet Location

 

June 30, 2020

 

 

December 31, 2019

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

$

622

 

 

$

138

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

 

—

 

 

 

113

 

Total derivative liabilities

 

 

 

$

622

 

 

$

251

 

 

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 June 30,

 

 

Six Months Ended June 30,

 

 

 

(Losses) in Net Income

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

 

 

 

$

416,833

 

 

$

389,006

 

 

$

827,999

 

 

$

791,931

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized in AOCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

 

 

 

1,179

 

 

 

3,586

 

 

 

868

 

 

 

4,769

 

   Gains (losses) reclassified from AOCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

Revenues

 

 

1,438

 

 

 

631

 

 

 

2,364

 

 

 

130

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized from foreign

      currency contracts

 

Other income (expense), net

 

$

(164

)

 

$

(432

)

 

$

(410

)

 

$

(465

)

 
v3.20.2
Investments Held in Rabbi Trust
 6 Months Ended
Jun. 30, 2020
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):

 

 

June 30, 2020

 

 

December 31, 2019

 

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

Mutual funds

$

10,170

 

 

$

14,017

 

 

$

9,777

 

 

$

13,927

 

 

The mutual funds held in rabbi trust were 62% equity-based and 38% debt-based as of June 30, 2020. 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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net realized gains (losses) from sale of trading

   securities

$

12

 

 

$

5

 

 

$

62

 

 

$

66

 

Dividend and interest income

 

48

 

 

 

53

 

 

 

81

 

 

 

82

 

Net unrealized holding gains (losses)

 

1,756

 

 

 

368

 

 

 

(384

)

 

 

1,458

 

 

$

1,816

 

 

$

426

 

 

$

(241

)

 

$

1,606

 

 
v3.20.2
Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2020
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

Note 9. 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, 2019

$

(58,253

)

 

$

1,046

 

 

$

(1,864

)

 

$

2,256

 

 

$

40

 

 

$

(56,775

)

Pre-tax amount

 

5,462

 

 

 

—

 

 

 

6,978

 

 

 

108

 

 

 

—

 

 

 

12,548

 

Tax (provision) benefit

 

—

 

 

 

—

 

 

 

20

 

 

 

(23

)

 

 

—

 

 

 

(3

)

Reclassification of (gain) loss to net income

 

—

 

 

 

—

 

 

 

(2,719

)

 

 

(100

)

 

 

48

 

 

 

(2,771

)

Foreign currency translation

 

42

 

 

 

—

 

 

 

(125

)

 

 

83

 

 

 

—

 

 

 

—

 

Balance at December 31, 2019

 

(52,749

)

 

 

1,046

 

 

 

2,290

 

 

 

2,324

 

 

 

88

 

 

 

(47,001

)

Pre-tax amount

 

(12,979

)

 

 

—

 

 

 

868

 

 

 

—

 

 

 

—

 

 

 

(12,111

)

Tax (provision) benefit

 

—

 

 

 

—

 

 

 

(184

)

 

 

7

 

 

 

—

 

 

 

(177

)

Reclassification of (gain) loss to net income

 

—

 

 

 

—

 

 

 

(2,294

)

 

 

(53

)

 

 

(44

)

 

 

(2,391

)

Foreign currency translation

 

(60

)

 

 

—

 

 

 

15

 

 

 

45

 

 

 

—

 

 

 

—

 

Balance at June 30, 2020

$

(65,788

)

 

$

1,046

 

 

$

695

 

 

$

2,323

 

 

$

44

 

 

$

(61,680

)

 

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 June 30,

 

 

Six Months Ended June 30,

 

 

Statements of

Operations

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

Location

Gain (loss) on cash flow hedging

   instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

$

1,438

 

 

$

631

 

 

$

2,364

 

 

$

130

 

 

Revenues

Tax (provision) benefit

 

(42

)

 

 

(35

)

 

 

(70

)

 

 

(45

)

 

Income taxes

Reclassification to net income

 

1,396

 

 

 

596

 

 

 

2,294

 

 

 

85

 

 

 

Actuarial gain (loss) related to

   pension liability: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

 

23

 

 

 

21

 

 

 

46

 

 

 

42

 

 

Other income (expense), net

Tax (provision) benefit

 

4

 

 

 

3

 

 

 

7

 

 

 

6

 

 

Income taxes

Reclassification to net income

 

27

 

 

 

24

 

 

 

53

 

 

 

48

 

 

 

Gain (loss) on postretirement

   obligation: (2)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification to net income

 

22

 

 

 

5

 

 

 

44

 

 

 

10

 

 

Other income (expense), net

 

$

1,445

 

 

$

625

 

 

$

2,391

 

 

$

143

 

 

 

 

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

(2) See Note 13, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

(3) No related tax (provision) benefit.

As discussed in Note 10, Income Taxes, for periods prior to December 31, 2017, any remaining reinvested earnings and 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.

v3.20.2
Income Taxes
 6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

Note 10. Income Taxes

The Company’s effective tax rates were as follows:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Effective tax rate

 

22.3

%

 

 

18.0

%

 

 

24.3

%

 

 

23.7

%

The increase in the effective tax rate for the three months ended June 30, 2020 as compared to 2019 was primarily due to an election made during the three months ended June 30, 2019 to step up tax basis in a foreign subsidiary which resulted in a $0.6 million discrete tax benefit.  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 six months ended June 30, 2020 as compared to 2019 was primarily due to the aforementioned election to step up tax basis in a foreign subsidiary, partially offset 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.

Prior to December 31, 2017, no additional income taxes have been provided for any reinvested earnings and 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 is currently under audit in several tax jurisdictions. The Company believes it has adequate reserves related to all matters pertaining to these audits. Should the Company experience unfavorable outcomes from these audits, such outcomes could have a significant impact on its financial condition, results of operations and cash flows.
v3.20.2
Earnings Per Share
 6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Earnings Per Share

Note 11. 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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

40,318

 

 

 

42,038

 

 

 

40,726

 

 

 

42,107

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of stock appreciation rights, restricted

   stock, restricted stock units and shares held in

   rabbi trust

 

62

 

 

 

56

 

 

 

131

 

 

 

93

 

Total weighted average diluted shares outstanding

 

40,380

 

 

 

42,094

 

 

 

40,857

 

 

 

42,200

 

Anti-dilutive shares excluded from the diluted earnings

   per share calculation

 

101

 

 

 

207

 

 

 

51

 

 

 

164

 

 

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 7.8 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 (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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

500

 

 

$

23.90

 

 

$

27.94

 

 

$

13,019

 

June 30, 2019

 

 

771

 

 

$

24.72

 

 

$

27.30

 

 

$

20,178

 

Six Months Ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

1,360

 

 

$

23.33

 

 

$

31.91

 

 

$

35,928

 

June 30, 2019

 

 

771

 

 

$

24.72

 

 

$

27.30

 

 

$

20,178

 

 
v3.20.2
Commitments and Loss Contingencies
 6 Months Ended
Jun. 30, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Loss Contingencies

Note 12. Commitments and Loss Contingencies

Purchase Commitments

 

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

 

Loss Contingencies

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

The Company received a state audit assessment and is currently rebutting the position. The Company has determined that the likelihood of a liability is reasonably possible and developed a range of possible loss up to $1.9 million, net of federal benefit, as of June 30, 2020.

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.  
v3.20.2
Defined Benefit Pension Plan and Postretirement Benefits
 6 Months Ended
Jun. 30, 2020
Compensation And Retirement Disclosure [Abstract]  
Defined Benefit Pension Plan and Postretirement Benefits

Note 13. 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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Service cost

$

108

 

 

$

100

 

 

$

213

 

 

$

198

 

Interest cost

 

52

 

 

 

62

 

 

 

103

 

 

 

124

 

Recognized actuarial (gains)

 

(23

)

 

 

(21

)

 

 

(46

)

 

 

(42

)

 

$

137

 

 

$

141

 

 

$

270

 

 

$

280

 

 

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 six months ended June 30, 3020 and 2019. 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 six months ended June 30, 2020 and 2019.

Employee Retirement Savings Plans

The Company maintains a 401(k) plan covering defined employees who meet established eligibility requirements, which were last modified on September 30, 2019, effective for contributions made beginning January 1, 2020. Under the current plan provisions, the Company matches 100% of the first 3% and 50% of the next 2% of participant contributions to a maximum matching amount of 4% of participant compensation for most of the Company’s employees. Additionally, participants whose salaries are above a certain threshold are eligible for a Company match of 50% of the first 4% for those participants’ 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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

401(k) plan contributions

$

711

 

 

$

419

 

 

$

1,491

 

 

$

885

 

 
v3.20.2
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

Note 14. Stock-Based Compensation

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Stock-based compensation (expense) (1)

$

(2,042

)

 

$

(2,200

)

 

$

(3,902

)

 

$

(4,090

)

Income tax benefit (2)

 

490

 

 

 

528

 

 

 

936

 

 

 

982

 

 

(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 six months ended June 30, 2020, the Company granted 0.4 million performance-based restricted shares/restricted stock units and 0.2 million service-based restricted shares/restricted stock units under the Company’s 2019 Plan, all at a weighted average grant-date fair value of $25.60 per share.
v3.20.2
Segments and Geographic Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segments and Geographic Information

Note 15. 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 June 30, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

339,272

 

 

$

77,561

 

 

$

—

 

 

$

416,833

 

Percentage of revenues

 

81.4

%

 

 

18.6

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

10,088

 

 

$

1,818

 

 

$

724

 

 

$

12,630

 

Amortization of intangibles

$

3,281

 

 

$

812

 

 

$

—

 

 

$

4,093

 

Income (loss) from operations

$

40,479

 

 

$

4,078

 

 

$

(17,344

)

 

$

27,213

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

1,402

 

 

 

1,402

 

Income taxes

 

 

 

 

 

 

 

 

 

(6,385

)

 

 

(6,385

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

22,230

 

Three Months Ended June 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

310,307

 

 

$

78,676

 

 

$

23

 

 

$

389,006

 

Percentage of revenues

 

79.8

%

 

 

20.2

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

10,659

 

 

$

1,628

 

 

$

765

 

 

$

13,052

 

Amortization of intangibles

$

3,288

 

 

$

839

 

 

$

—

 

 

$

4,127

 

Income (loss) from operations

$

26,584

 

 

$

4,661

 

 

$

(15,990

)

 

$

15,255

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(1,520

)

 

 

(1,520

)

Income taxes

 

 

 

 

 

 

 

 

 

(2,466

)

 

 

(2,466

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

11,269

 

Six Months Ended June 30, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

672,198

 

 

$

155,794

 

 

$

7

 

 

$

827,999

 

Percentage of revenues

 

81.2

%

 

 

18.8

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

20,121

 

 

$

3,523

 

 

$

1,447

 

 

$

25,091

 

Amortization of intangibles

$

6,567

 

 

$

1,645

 

 

$

—

 

 

$

8,212

 

Income (loss) from operations

$

76,258

 

 

$

7,258

 

 

$

(31,909

)

 

$

51,607

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(3,848

)

 

 

(3,848

)

Income taxes

 

 

 

 

 

 

 

 

 

(11,611

)

 

 

(11,611

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

36,148

 

Six Months Ended June 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

635,084

 

 

$

156,804

 

 

$

43

 

 

$

791,931

 

Percentage of revenues

 

80.2

%

 

 

19.8

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

22,166

 

 

$

3,254

 

 

$

1,529

 

 

$

26,949

 

Amortization of intangibles

$

6,726

 

 

$

1,687

 

 

$

—

 

 

$

8,413

 

Income (loss) from operations

$

56,652

 

 

$

6,152

 

 

$

(30,797

)

 

$

32,007

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(1,903

)

 

 

(1,903

)

Income taxes

 

 

 

 

 

 

 

 

 

(7,148

)

 

 

(7,148

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

22,956

 

 

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

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

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

$

164,773

 

 

$

144,736

 

 

$

322,437

 

 

$

306,768

 

The Philippines

 

62,567

 

 

 

58,793

 

 

 

127,006

 

 

 

114,871

 

Costa Rica

 

39,250

 

 

 

31,579

 

 

 

74,131

 

 

 

62,296

 

Canada

 

22,955

 

 

 

24,506

 

 

 

48,196

 

 

 

50,070

 

El Salvador

 

16,902

 

 

 

20,067

 

 

 

35,622

 

 

 

40,543

 

Other

 

32,825

 

 

 

30,626

 

 

 

64,806

 

 

 

60,536

 

Total Americas

 

339,272

 

 

 

310,307

 

 

 

672,198

 

 

 

635,084

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

24,116

 

 

 

22,813

 

 

 

48,767

 

 

 

46,677

 

Other

 

53,445

 

 

 

55,863

 

 

 

107,027

 

 

 

110,127

 

Total EMEA

 

77,561

 

 

 

78,676

 

 

 

155,794

 

 

 

156,804

 

Total Other

 

—

 

 

 

23

 

 

 

7

 

 

 

43

 

 

$

416,833

 

 

$

389,006

 

 

$

827,999

 

 

$

791,931

 

 
v3.20.2
Other Income (Expense)
 6 Months Ended
Jun. 30, 2020
Other Income And Expenses [Abstract]  
Other Income (Expense)

Note 16. Other Income (Expense)

 

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Foreign currency transaction gains (losses)

$

48

 

 

$

(361

)

 

$

(1,558

)

 

$

(537

)

Gains (losses) on derivative instruments not designated

   as hedges

 

(164

)

 

 

(432

)

 

 

(410

)

 

 

(465

)

Net investment gains (losses) on investments held in

   rabbi trust

 

1,816

 

 

 

426

 

 

 

(241

)

 

 

1,606

 

Other miscellaneous income (expense)

 

97

 

 

 

(166

)

 

 

(787

)

 

 

(527

)

 

$

1,797

 

 

$

(533

)

 

$

(2,996

)

 

$

77

 

 
v3.20.2
Related Party Transactions
 6 Months Ended
Jun. 30, 2020
Related Party Transactions [Abstract]  
Related Party Transactions

Note 17. 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 June 30, 2020 and 2019, and $0.2 million during both the six months ended June 30, 2020 and 2019, under the terms of the lease.

 
v3.20.2
Overview and Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2020
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 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.
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 six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2020. 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, 2019, as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2020.
Principles of Consolidation

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

Use of Estimates — The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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

Subsequent Events — Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. There were no material subsequent events that required recognition or disclosure in the accompanying condensed consolidated financial statements.
Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash — Cash and cash equivalents consist of cash and highly liquid short-term investments, primarily held in non-interest-bearing investments which have original maturities of less than 90 days. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations.  

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

 

 

June 30, 2020

 

 

December 31, 2019

 

 

June 30, 2019

 

 

December 31, 2018

 

Cash and cash equivalents

$

129,050

 

 

$

127,246

 

 

$

136,631

 

 

$

128,697

 

Restricted cash included in "Other current assets"

 

318

 

 

 

568

 

 

 

566

 

 

 

149

 

Restricted cash included in "Deferred charges and

   other assets"

 

1,315

 

 

 

1,371

 

 

 

1,370

 

 

 

1,385

 

 

$

130,683

 

 

$

129,185

 

 

$

138,567

 

 

$

130,231

 
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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Customer-acquisition advertising costs

$

9,826

 

 

$

10,036

 

 

$

20,008

 

 

$

22,140

 

 
New Accounting Standards Not Yet Adopted

New Accounting Standards Not Yet Adopted

Income Taxes

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes (“ASU 2019-12”). These amendments simplify the accounting for income taxes by eliminating certain exceptions and also clarifying and amending certain aspects of existing guidance.  These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020.  Most of the amendments are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis.  Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company is currently evaluating the amendments in ASU 2019-12 but does not expect a material impact on its financial condition, results of operations, cash flows or disclosures.  The Company does not anticipate early adoption of ASU 2019-12.

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.
New Accounting Standards Recently Adopted

New Accounting Standards Recently Adopted

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 adopted ASU 2016-13 on January 1, 2020, using the modified retrospective transition method, which resulted in no cumulative-effect adjustment to be recognized to the opening balance of retained earnings. The prior period was not restated.  The Company’s adoption of ASU 2016-13 did not have a material impact on its financial condition, results of operations or cash flows as the credit losses associated with the Company’s trade receivables have historically been insignificant. See the description of the Company’s “Allowance for Doubtful Accounts” accounting policy in the “Significant Accounting Policies” section below.

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, Topic 815, 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’s adoption of ASU 2019-04 on January 1, 2020 did not have a material impact on its financial condition, results of operations, cash flows or disclosures.

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’s adoption of ASU 2018-03 on January 1, 2020 did not have a material impact on its disclosures.

Cloud Computing

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update.  The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company’s adoption of ASU 2018-15 on January 1, 2020 on a prospective basis did not have a material impact on its financial condition, results of operations, cash flows or disclosures. 

Significant Accounting Policies

With the exception of the change for the accounting of credit losses as a result of the adoption of ASU 2016-13, there have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

The Company maintains allowances for doubtful accounts on trade accounts receivables for estimated losses arising from the inability of its clients to make contractual payments, applying a probability of default method. The Company’s estimate is based on qualitative and quantitative analyses, applying credit risk measurement tools and methodologies using publicly available credit and capital market information, a review of the current status of the Company’s trade accounts receivable and its historical experience. It is reasonably possible that the Company’s estimate of the allowance for credit losses will increase if the financial condition of the Company’s clients were to deteriorate, resulting in a reduced ability to make payments.
Revenue from Contracts with Customers

Revenues from Contracts with Customers

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. RPA services revenues are primarily recognized over time using output methods such as per time and materials basis. Revenues from fulfillment services are recognized upon shipment to the customer and satisfaction of all obligations. Revenues from enterprise support services are recognized over time using output methods such as number of positions filled.

The Company expects to recognize the majority of its deferred revenue as of June 30, 2020 over the next 180 days. Revenues of $0.2 million and $0.3 million were recognized during the three months ended June 30, 2020 and 2019, respectively, and revenues of $2.9 million and $3.4 million were recognized during the six months ended June 30, 2020 and 2019, respectively, from amounts included in deferred revenue at December 31, 2019 and 2018, respectively.

The Company expects to recognize the majority of the customer arrangements with termination rights into revenue as the Company has not historically experienced a high rate of contract terminations.

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

Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) defines fair value and establishes a framework for measuring fair value. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.  Additionally, ASC 820 requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for how these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy:

 

 

•

Level 1 — Quoted prices for identical instruments in active markets.

 

•

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

 

•

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

Financial Instruments

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

 

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

 

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

 

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

 

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

 

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

 

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

v3.20.2
Overview and Basis of Presentation (Tables)
 6 Months Ended
Jun. 30, 2020
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):

 

 

June 30, 2020

 

 

December 31, 2019

 

 

June 30, 2019

 

 

December 31, 2018

 

Cash and cash equivalents

$

129,050

 

 

$

127,246

 

 

$

136,631

 

 

$

128,697

 

Restricted cash included in "Other current assets"

 

318

 

 

 

568

 

 

 

566

 

 

 

149

 

Restricted cash included in "Deferred charges and

   other assets"

 

1,315

 

 

 

1,371

 

 

 

1,370

 

 

 

1,385

 

 

$

130,683

 

 

$

129,185

 

 

$

138,567

 

 

$

130,231

 
Schedule of 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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Customer-acquisition advertising costs

$

9,826

 

 

$

10,036

 

 

$

20,008

 

 

$

22,140

 
v3.20.2
Revenues (Tables)
 6 Months Ended
Jun. 30, 2020
Revenue From Contract With Customer [Abstract]  
Revenues from Contracts with Customers Disaggregated by Service Type

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

 

 

Three Months Ended June 30,

 

 

2020

 

 

2019

 

 

Amount

 

 

% of Revenue

 

 

Amount

 

 

% of Revenue

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

$

338,963

 

 

 

81.3

%

 

$

310,070

 

 

 

79.8

%

Other revenues

 

309

 

 

 

0.1

%

 

 

237

 

 

 

0.0

%

Total Americas

 

339,272

 

 

 

81.4

%

 

 

310,307

 

 

 

79.8

%

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

 

73,285

 

 

 

17.6

%

 

 

68,643

 

 

 

17.6

%

Other revenues

 

4,276

 

 

 

1.0

%

 

 

10,033

 

 

 

2.6

%

Total EMEA

 

77,561

 

 

 

18.6

%

 

 

78,676

 

 

 

20.2

%

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

—

 

 

 

0.0

%

 

 

23

 

 

 

0.0

%

Total Other

 

—

 

 

 

0.0

%

 

 

23

 

 

 

0.0

%

 

$

416,833

 

 

 

100.0

%

 

$

389,006

 

 

 

100.0

%

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

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

Amount

 

 

% of Revenue

 

 

Amount

 

 

% of Revenue

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

$

671,577

 

 

 

81.1

%

 

$

634,632

 

 

 

80.2

%

Other revenues

 

621

 

 

 

0.1

%

 

 

452

 

 

 

0.0

%

Total Americas

 

672,198

 

 

 

81.2

%

 

 

635,084

 

 

 

80.2

%

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

 

145,918

 

 

 

17.6

%

 

 

139,640

 

 

 

17.6

%

Other revenues

 

9,876

 

 

 

1.2

%

 

 

17,164

 

 

 

2.2

%

Total EMEA

 

155,794

 

 

 

18.8

%

 

 

156,804

 

 

 

19.8

%

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

7

 

 

 

0.0

%

 

 

43

 

 

 

0.0

%

Total Other

 

7

 

 

 

0.0

%

 

 

43

 

 

 

0.0

%

 

$

827,999

 

 

 

100.0

%

 

$

791,931

 

 

 

100.0

%
Receivables, Net

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

 

 

June 30, 2020

 

 

December 31, 2019

 

Trade accounts receivable, net, current (1)

$

368,693

 

 

$

375,136

 

Trade accounts receivable, net, noncurrent (2)

 

26,920

 

 

 

26,496

 

 

$

395,613

 

 

$

401,632

 

 

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

(2) Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.  
Components of Deferred Revenue and Customer Liabilities

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

 

 

June 30, 2020

 

 

December 31, 2019

 

Deferred revenue

$

3,475

 

 

$

3,012

 

Customer arrangements with termination rights

 

14,554

 

 

 

15,024

 

Estimated refund liabilities

 

6,265

 

 

 

8,585

 

 

$

24,294

 

 

$

26,621

 

 
v3.20.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Schedule of Lease

Additional supplemental information related to leases was as follows:

 

June 30, 2020

 

 

December 31, 2019

 

Weighted average remaining lease term of operating leases

4.8 years

 

 

5.1 years

 

Weighted average discount rate of operating leases

 

3.5

%

 

 

3.7

%
Schedule of Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of June 30, 2020 were as follows (in thousands):

 

Amount

 

2020 (remainder of the year)

$

28,288

 

2021

 

58,340

 

2022

 

44,905

 

2023

 

30,407

 

2024

 

21,307

 

2025 and thereafter

 

37,962

 

Total future lease payments

 

221,209

 

Less: Imputed interest

 

18,949

 

Present value of future lease payments

 

202,260

 

Less: Operating lease liabilities

 

54,948

 

Long-term operating lease liabilities

$

147,312

 
v3.20.2
Costs Associated with Exit or Disposal Activities (Tables)
 6 Months Ended
Jun. 30, 2020
Restructuring And Related Activities [Abstract]  
Summary of Accrued Liability and Related Activity

The following table summarizes the accrued liability and related activity for the three months ended June 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

$

162

 

 

$

495

 

 

$

657

 

 

$

—

 

 

$

1,040

 

 

$

1,040

 

Charges (reversals) included in "Direct

   salaries and related costs"

 

—

 

 

 

(3

)

 

 

(3

)

 

 

—

 

 

 

184

 

 

 

184

 

Charges (reversals) included in "General

   and administrative"

 

—

 

 

 

(9

)

 

 

(9

)

 

 

54

 

 

 

1,079

 

 

 

1,133

 

Cash payments

 

(33

)

 

 

(261

)

 

 

(294

)

 

 

—

 

 

 

(742

)

 

 

(742

)

Balance at the end of the period

$

129

 

 

$

222

 

 

$

351

 

 

$

54

 

 

$

1,561

 

 

$

1,615

 

 

The following table summarizes the accrued liability and related activity for the six months ended June 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

)

 

 

10

 

 

 

6

 

 

 

54

 

 

 

2,169

 

 

 

2,223

 

Cash payments

 

(298

)

 

 

(602

)

 

 

(900

)

 

 

—

 

 

 

(799

)

 

 

(799

)

Balance sheet reclassifications (1)

 

(1,338

)

 

 

—

 

 

 

(1,338

)

 

 

—

 

 

 

—

 

 

 

—

 

Balance at the end of the period

$

129

 

 

$

222

 

 

$

351

 

 

$

54

 

 

$

1,561

 

 

$

1,615

 

 

(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.
Cumulative Total Costs Expected and Incurred to Date Related to Cash and Non-Cash Expenditures Resulting from Exit Plan

The cumulative costs incurred to date related to cash and non-cash expenditures resulting from the Americas 2018 and 2019 Exit Plans are outlined below as of June 30, 2020 (in thousands):

 

 

Americas

2018 Exit Plan

 

 

Americas

2019 Exit Plan

 

Lease obligations and facility exit costs (1)

$

7,073

 

 

$

—

 

Severance and related costs (2)

 

3,426

 

 

 

191

 

Severance and related costs (1)

 

1,037

 

 

 

2,153

 

Non-cash impairment charges

 

5,875

 

 

 

1,582

 

Other non-cash charges

 

—

 

 

 

244

 

 

$

17,411

 

 

$

4,170

 

 

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

(2) Included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Statements of Operations.
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

 

 

June 30, 2020

 

 

December 31, 2019

 

 

June 30, 2020

 

 

December 31, 2019

 

Lease obligations and facility exit costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in "Other accrued expenses

   and current liabilities"

 

67

 

 

 

54

 

 

 

—

 

 

 

—

 

Included in "Other long-term liabilities"

 

—

 

 

 

27

 

 

 

—

 

 

 

—

 

 

 

67

 

 

 

81

 

 

 

—

 

 

 

—

 

Severance and related costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in "Accrued employee compensation

   and benefits"

 

—

 

 

 

6

 

 

 

—

 

 

 

479

 

Included in "Other accrued expenses

   and current liabilities"

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

481

 

 

$

67

 

 

$

87

 

 

$

—

 

 

$

481

 

 
v3.20.2
Fair Value (Tables)
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis

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

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

June 30, 2020

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

1,833

 

 

$

—

 

 

$

1,833

 

 

$

—

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

8,711

 

 

 

8,711

 

 

 

—

 

 

 

—

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

5,306

 

 

 

5,306

 

 

 

—

 

 

 

—

 

 

$

15,850

 

 

$

14,017

 

 

$

1,833

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

622

 

 

$

—

 

 

$

622

 

 

$

—

 

 

$

622

 

 

$

—

 

 

$

622

 

 

$

—

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

Balance at

 

 

Quoted

Prices in

Active Markets

For Identical

Assets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

 

December 31, 2019

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

3,607

 

 

$

—

 

 

$

3,607

 

 

$

—

 

Equity investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

9,125

 

 

 

9,125

 

 

 

—

 

 

 

—

 

Debt investments held in rabbi trust for the

   Deferred Compensation Plan (2)

 

4,802

 

 

 

4,802

 

 

 

—

 

 

 

—

 

 

$

17,534

 

 

$

13,927

 

 

$

3,607

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts (1)

$

251

 

 

$

—

 

 

$

251

 

 

$

—

 

 

$

251

 

 

$

—

 

 

$

251

 

 

$

—

 

 

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

The following table summarizes the total impairment losses in the accompanying Condensed Consolidated Statements of Operations related to nonrecurring fair value measurements of certain assets (no liabilities) (in thousands):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

$

760

 

 

$

—

 

 

$

760

 

 

$

343

 

Operating lease right-of-use assets

 

1,040

 

 

 

129

 

 

 

1,040

 

 

 

1,368

 

 

$

1,800

 

 

$

129

 

 

$

1,800

 

 

$

1,711

 
v3.20.2
Goodwill and Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Company's Purchased Intangible Assets

The following table presents the Company’s purchased intangible assets as of June 30, 2020 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

188,875

 

 

$

(126,829

)

 

$

62,046

 

 

 

10

 

Trade names and trademarks

 

19,123

 

 

 

(14,043

)

 

 

5,080

 

 

 

8

 

Non-compete agreements

 

923

 

 

 

(508

)

 

 

415

 

 

 

3

 

Content library

 

507

 

 

 

(507

)

 

 

—

 

 

 

2

 

Proprietary software

 

870

 

 

 

(765

)

 

 

105

 

 

 

5

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

80,927

 

 

 

—

 

 

 

80,927

 

 

N/A

 

 

$

291,225

 

 

$

(142,652

)

 

$

148,573

 

 

 

4

 

 

The following table presents the Company’s purchased intangible assets as of December 31, 2019 (in thousands):

 

 

Gross

Intangibles

 

 

Accumulated

Amortization

 

 

Net

Intangibles

 

 

Weighted

Average

Amortization

Period (years)

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

$

191,171

 

 

$

(121,074

)

 

$

70,097

 

 

 

10

 

Trade names and trademarks

 

19,380

 

 

 

(12,929

)

 

 

6,451

 

 

 

8

 

Non-compete agreements

 

2,769

 

 

 

(2,181

)

 

 

588

 

 

 

3

 

Content library

 

506

 

 

 

(506

)

 

 

—

 

 

 

2

 

Proprietary software

 

870

 

 

 

(695

)

 

 

175

 

 

 

5

 

Intangible assets not subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domain names

 

81,109

 

 

 

—

 

 

 

81,109

 

 

N/A

 

 

$

295,805

 

 

$

(137,385

)

 

$

158,420

 

 

 

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 June 30, 2020 is as follows (in thousands):

 

 

Amount

 

2020 (remainder of the year)

$

5,706

 

2021

 

9,341

 

2022

 

8,057

 

2023

 

7,220

 

2024

 

6,975

 

2025

 

6,851

 

2026 and thereafter

 

23,496

 

 
Changes in Goodwill

Changes in goodwill for the six months ended June 30, 2020 consisted of the following (in thousands):

 

 

January 1, 2020

 

 

Acquisition-

Related

 

 

Effect of

Foreign

Currency

 

 

June 30, 2020

 

Americas

$

259,953

 

 

$

—

 

 

$

(2,038

)

 

$

257,915

 

EMEA

 

51,294

 

 

 

—

 

 

 

(2,497

)

 

 

48,797

 

 

$

311,247

 

 

$

—

 

 

$

(4,535

)

 

$

306,712

 

 

Changes in goodwill for the year ended December 31, 2019 consisted of the following (in thousands):

 

 

January 1, 2019

 

 

Acquisition-

Related  (1)

 

 

Effect of

Foreign

Currency

 

 

December 31, 2019

 

Americas

$

255,436

 

 

$

1,202

 

 

$

3,315

 

 

$

259,953

 

EMEA

 

47,081

 

 

 

2,421

 

 

 

1,792

 

 

 

51,294

 

 

$

302,517

 

 

$

3,623

 

 

$

5,107

 

 

$

311,247

 

 

(1) The year ended December 31, 2019 includes the impact of adjustments to acquired goodwill upon finalization of working capital adjustments and the tax analysis of WhistleOut’s and Symphony’s assets acquired and liabilities assumed.

 
v3.20.2
Financial Derivatives (Tables)
 6 Months Ended
Jun. 30, 2020
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):

 

 

June 30, 2020

 

 

December 31, 2019

 

Deferred gains (losses) in AOCI

$

740

 

 

$

2,221

 

Tax on deferred gains (losses) in AOCI

 

(45

)

 

 

69

 

Deferred gains (losses) in AOCI, net of taxes

$

695

 

 

$

2,290

 

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

   from AOCI during the next twelve months

$

690

 

 

 

 

 
Outstanding Foreign Currency Forward Contracts and Options

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

 

 

June 30, 2020

 

December 31, 2019

 

Contract Type

Notional

Amount

in USD

 

 

Settle

Through

Date

 

Notional

Amount

in USD

 

 

Settle

Through

Date

 

Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Options:

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Philippine Pesos

$

40,000

 

 

December 2020

 

$

74,000

 

 

December 2020

 

Forwards:

 

 

 

 

 

 

 

 

 

 

 

 

 

US Dollars/Costa Rican Colones

 

64,000

 

 

August 2021

 

 

42,000

 

 

December 2020

 

Euros/Hungarian Forints

 

1,751

 

 

December 2020

 

 

—

 

 

 

—

 

Euros/Romanian Leis

 

7,556

 

 

December 2020

 

 

—

 

 

 

—

 

Non-designated hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Forwards

 

9,405

 

 

November 2021

 

 

19,295

 

 

November 2021

 
Derivative Instruments Fair Value

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

 

 

 

 

 

Derivative Assets

 

 

 

Balance Sheet Location

 

June 30, 2020

 

 

December 31, 2019

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

$

1,678

 

 

$

3,051

 

Foreign currency contracts

 

Deferred charges and other assets

 

 

50

 

 

 

—

 

 

 

 

 

 

1,728

 

 

 

3,051

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other current assets

 

 

53

 

 

 

322

 

Foreign currency contracts

 

Deferred charges and other assets

 

 

52

 

 

 

234

 

Total derivative assets

 

 

 

$

1,833

 

 

$

3,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liabilities

 

 

 

Balance Sheet Location

 

June 30, 2020

 

 

December 31, 2019

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

$

622

 

 

$

138

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts

 

Other accrued expenses and current liabilities

 

 

—

 

 

 

113

 

Total derivative liabilities

 

 

 

$

622

 

 

$

251

 

 
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 June 30,

 

 

Six Months Ended June 30,

 

 

 

(Losses) in Net Income

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

 

 

 

$

416,833

 

 

$

389,006

 

 

$

827,999

 

 

$

791,931

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated as cash

   flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized in AOCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

 

 

 

1,179

 

 

 

3,586

 

 

 

868

 

 

 

4,769

 

   Gains (losses) reclassified from AOCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Foreign currency contracts

 

Revenues

 

 

1,438

 

 

 

631

 

 

 

2,364

 

 

 

130

 

Derivatives not designated as

   hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Gains (losses) recognized from foreign

      currency contracts

 

Other income (expense), net

 

$

(164

)

 

$

(432

)

 

$

(410

)

 

$

(465

)

 
v3.20.2
Investments Held in Rabbi Trust (Tables)
 6 Months Ended
Jun. 30, 2020
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):

 

 

June 30, 2020

 

 

December 31, 2019

 

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

Mutual funds

$

10,170

 

 

$

14,017

 

 

$

9,777

 

 

$

13,927

 
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 62% equity-based and 38% debt-based as of June 30, 2020. 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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net realized gains (losses) from sale of trading

   securities

$

12

 

 

$

5

 

 

$

62

 

 

$

66

 

Dividend and interest income

 

48

 

 

 

53

 

 

 

81

 

 

 

82

 

Net unrealized holding gains (losses)

 

1,756

 

 

 

368

 

 

 

(384

)

 

 

1,458

 

 

$

1,816

 

 

$

426

 

 

$

(241

)

 

$

1,606

 

 
v3.20.2
Accumulated Other Comprehensive Income (Loss) (Tables)
 6 Months Ended
Jun. 30, 2020
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, 2019

$

(58,253

)

 

$

1,046

 

 

$

(1,864

)

 

$

2,256

 

 

$

40

 

 

$

(56,775

)

Pre-tax amount

 

5,462

 

 

 

—

 

 

 

6,978

 

 

 

108

 

 

 

—

 

 

 

12,548

 

Tax (provision) benefit

 

—

 

 

 

—

 

 

 

20

 

 

 

(23

)

 

 

—

 

 

 

(3

)

Reclassification of (gain) loss to net income

 

—

 

 

 

—

 

 

 

(2,719

)

 

 

(100

)

 

 

48

 

 

 

(2,771

)

Foreign currency translation

 

42

 

 

 

—

 

 

 

(125

)

 

 

83

 

 

 

—

 

 

 

—

 

Balance at December 31, 2019

 

(52,749

)

 

 

1,046

 

 

 

2,290

 

 

 

2,324

 

 

 

88

 

 

 

(47,001

)

Pre-tax amount

 

(12,979

)

 

 

—

 

 

 

868

 

 

 

—

 

 

 

—

 

 

 

(12,111

)

Tax (provision) benefit

 

—

 

 

 

—

 

 

 

(184

)

 

 

7

 

 

 

—

 

 

 

(177

)

Reclassification of (gain) loss to net income

 

—

 

 

 

—

 

 

 

(2,294

)

 

 

(53

)

 

 

(44

)

 

 

(2,391

)

Foreign currency translation

 

(60

)

 

 

—

 

 

 

15

 

 

 

45

 

 

 

—

 

 

 

—

 

Balance at June 30, 2020

$

(65,788

)

 

$

1,046

 

 

$

695

 

 

$

2,323

 

 

$

44

 

 

$

(61,680

)
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 June 30,

 

 

Six Months Ended June 30,

 

 

Statements of

Operations

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

Location

Gain (loss) on cash flow hedging

   instruments: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

$

1,438

 

 

$

631

 

 

$

2,364

 

 

$

130

 

 

Revenues

Tax (provision) benefit

 

(42

)

 

 

(35

)

 

 

(70

)

 

 

(45

)

 

Income taxes

Reclassification to net income

 

1,396

 

 

 

596

 

 

 

2,294

 

 

 

85

 

 

 

Actuarial gain (loss) related to

   pension liability: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax amount

 

23

 

 

 

21

 

 

 

46

 

 

 

42

 

 

Other income (expense), net

Tax (provision) benefit

 

4

 

 

 

3

 

 

 

7

 

 

 

6

 

 

Income taxes

Reclassification to net income

 

27

 

 

 

24

 

 

 

53

 

 

 

48

 

 

 

Gain (loss) on postretirement

   obligation: (2)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification to net income

 

22

 

 

 

5

 

 

 

44

 

 

 

10

 

 

Other income (expense), net

 

$

1,445

 

 

$

625

 

 

$

2,391

 

 

$

143

 

 

 

 

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

(2) See Note 13, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

(3) No related tax (provision) benefit.
v3.20.2
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Summary of Effective Tax Rates

The Company’s effective tax rates were as follows:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Effective tax rate

 

22.3

%

 

 

18.0

%

 

 

24.3

%

 

 

23.7

%
v3.20.2
Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 2020
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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

40,318

 

 

 

42,038

 

 

 

40,726

 

 

 

42,107

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive effect of stock appreciation rights, restricted

   stock, restricted stock units and shares held in

   rabbi trust

 

62

 

 

 

56

 

 

 

131

 

 

 

93

 

Total weighted average diluted shares outstanding

 

40,380

 

 

 

42,094

 

 

 

40,857

 

 

 

42,200

 

Anti-dilutive shares excluded from the diluted earnings

   per share calculation

 

101

 

 

 

207

 

 

 

51

 

 

 

164

 
Shares Repurchased

The shares repurchased under the Company’s 2011 Share Repurchase Program were as follows (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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

500

 

 

$

23.90

 

 

$

27.94

 

 

$

13,019

 

June 30, 2019

 

 

771

 

 

$

24.72

 

 

$

27.30

 

 

$

20,178

 

Six Months Ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

1,360

 

 

$

23.33

 

 

$

31.91

 

 

$

35,928

 

June 30, 2019

 

 

771

 

 

$

24.72

 

 

$

27.30

 

 

$

20,178

 
v3.20.2
Defined Benefit Pension Plan and Postretirement Benefits (Tables)
 6 Months Ended
Jun. 30, 2020
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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Service cost

$

108

 

 

$

100

 

 

$

213

 

 

$

198

 

Interest cost

 

52

 

 

 

62

 

 

 

103

 

 

 

124

 

Recognized actuarial (gains)

 

(23

)

 

 

(21

)

 

 

(46

)

 

 

(42

)

 

$

137

 

 

$

141

 

 

$

270

 

 

$

280

 
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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

401(k) plan contributions

$

711

 

 

$

419

 

 

$

1,491

 

 

$

885

 

 
v3.20.2
Stock-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2020
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 June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Stock-based compensation (expense) (1)

$

(2,042

)

 

$

(2,200

)

 

$

(3,902

)

 

$

(4,090

)

Income tax benefit (2)

 

490

 

 

 

528

 

 

 

936

 

 

 

982

 

 

(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.
v3.20.2
Segments and Geographic Information (Tables)
 6 Months Ended
Jun. 30, 2020
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 June 30, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

339,272

 

 

$

77,561

 

 

$

—

 

 

$

416,833

 

Percentage of revenues

 

81.4

%

 

 

18.6

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

10,088

 

 

$

1,818

 

 

$

724

 

 

$

12,630

 

Amortization of intangibles

$

3,281

 

 

$

812

 

 

$

—

 

 

$

4,093

 

Income (loss) from operations

$

40,479

 

 

$

4,078

 

 

$

(17,344

)

 

$

27,213

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

1,402

 

 

 

1,402

 

Income taxes

 

 

 

 

 

 

 

 

 

(6,385

)

 

 

(6,385

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

22,230

 

Three Months Ended June 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

310,307

 

 

$

78,676

 

 

$

23

 

 

$

389,006

 

Percentage of revenues

 

79.8

%

 

 

20.2

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

10,659

 

 

$

1,628

 

 

$

765

 

 

$

13,052

 

Amortization of intangibles

$

3,288

 

 

$

839

 

 

$

—

 

 

$

4,127

 

Income (loss) from operations

$

26,584

 

 

$

4,661

 

 

$

(15,990

)

 

$

15,255

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(1,520

)

 

 

(1,520

)

Income taxes

 

 

 

 

 

 

 

 

 

(2,466

)

 

 

(2,466

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

11,269

 

Six Months Ended June 30, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

672,198

 

 

$

155,794

 

 

$

7

 

 

$

827,999

 

Percentage of revenues

 

81.2

%

 

 

18.8

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

20,121

 

 

$

3,523

 

 

$

1,447

 

 

$

25,091

 

Amortization of intangibles

$

6,567

 

 

$

1,645

 

 

$

—

 

 

$

8,212

 

Income (loss) from operations

$

76,258

 

 

$

7,258

 

 

$

(31,909

)

 

$

51,607

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(3,848

)

 

 

(3,848

)

Income taxes

 

 

 

 

 

 

 

 

 

(11,611

)

 

 

(11,611

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

36,148

 

Six Months Ended June 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

635,084

 

 

$

156,804

 

 

$

43

 

 

$

791,931

 

Percentage of revenues

 

80.2

%

 

 

19.8

%

 

 

0.0

%

 

 

100.0

%

Depreciation, net

$

22,166

 

 

$

3,254

 

 

$

1,529

 

 

$

26,949

 

Amortization of intangibles

$

6,726

 

 

$

1,687

 

 

$

—

 

 

$

8,413

 

Income (loss) from operations

$

56,652

 

 

$

6,152

 

 

$

(30,797

)

 

$

32,007

 

Total other income (expense), net

 

 

 

 

 

 

 

 

 

(1,903

)

 

 

(1,903

)

Income taxes

 

 

 

 

 

 

 

 

 

(7,148

)

 

 

(7,148

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$

22,956

 

 

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

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

$

164,773

 

 

$

144,736

 

 

$

322,437

 

 

$

306,768

 

The Philippines

 

62,567

 

 

 

58,793

 

 

 

127,006

 

 

 

114,871

 

Costa Rica

 

39,250

 

 

 

31,579

 

 

 

74,131

 

 

 

62,296

 

Canada

 

22,955

 

 

 

24,506

 

 

 

48,196

 

 

 

50,070

 

El Salvador

 

16,902

 

 

 

20,067

 

 

 

35,622

 

 

 

40,543

 

Other

 

32,825

 

 

 

30,626

 

 

 

64,806

 

 

 

60,536

 

Total Americas

 

339,272

 

 

 

310,307

 

 

 

672,198

 

 

 

635,084

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

24,116

 

 

 

22,813

 

 

 

48,767

 

 

 

46,677

 

Other

 

53,445

 

 

 

55,863

 

 

 

107,027

 

 

 

110,127

 

Total EMEA

 

77,561

 

 

 

78,676

 

 

 

155,794

 

 

 

156,804

 

Total Other

 

—

 

 

 

23

 

 

 

7

 

 

 

43

 

 

$

416,833

 

 

$

389,006

 

 

$

827,999

 

 

$

791,931

 
v3.20.2
Other Income (Expense) (Tables)
 6 Months Ended
Jun. 30, 2020
Other Income And Expenses [Abstract]  
Other Income (Expense), Net

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Foreign currency transaction gains (losses)

$

48

 

 

$

(361

)

 

$

(1,558

)

 

$

(537

)

Gains (losses) on derivative instruments not designated

   as hedges

 

(164

)

 

 

(432

)

 

 

(410

)

 

 

(465

)

Net investment gains (losses) on investments held in

   rabbi trust

 

1,816

 

 

 

426

 

 

 

(241

)

 

 

1,606

 

Other miscellaneous income (expense)

 

97

 

 

 

(166

)

 

 

(787

)

 

 

(527

)

 

$

1,797

 

 

$

(533

)

 

$

(2,996

)

 

$

77

 
v3.20.2
Overview and Basis of Presentation - Additional Information (Detail)
$ in Thousands
 6 Months Ended
Jan. 01, 2020
USD ($)
Jun. 30, 2020
USD ($)
Segment
Jun. 30, 2019
USD ($)
Dec. 31, 2018
USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Number of reportable segments | Segment   2    
Accounts Receivable, Credit Loss Expense (Reversal)   $ 1,129 $ 68  
Accounts Receivable, Allowance for Credit Loss, Writeoff   $ 400    
Cumulative Effect, Period of Adoption, Adjustment [Member]        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Cumulative effect of accounting change       $ 110
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Cumulative effect of accounting change       $ 110
Accounting Standards Update 2016-13 [Member]        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
ASU adoption status true      
ASU adoption approach syke:AccountingStandardsUpdate201613ModifiedRetrospectiveMember      
Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Cumulative effect of accounting change $ 0      
Accounting Standards Update 2019-04 [Member]        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
ASU adoption status true      
Change in accounting principle, accounting standards update, immaterial effect true      
ASU adoption date Jan. 01, 2020      
Accounting Standards Update 2018-13 [Member]        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
ASU adoption status   true    
Change in accounting principle, accounting standards update, immaterial effect   true    
ASU adoption date   Jan. 01, 2020    
Accounting Standards Update 2018-15 [Member]        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
ASU adoption status   true    
ASU adoption approach   us-gaap:AccountingStandardsUpdate201815ProspectiveMember    
Change in accounting principle, accounting standards update, immaterial effect   true    
ASU adoption date   Jan. 01, 2020    
v3.20.2
Overview and Basis of Presentation - Summary of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Restricted Cash and Cash Equivalents Items [Line Items]        
Cash and cash equivalents $ 129,050 $ 127,246 $ 136,631 $ 128,697
Cash and Cash Equivalents and Restricted Cash 130,683 129,185 138,567 130,231
Other Current Assets [Member]        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash included in "Other current assets" 318 568 566 149
Deferred Charges and Other Assets [Member]        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash included in "Deferred charges and other assets" $ 1,315 $ 1,371 $ 1,370 $ 1,385
v3.20.2
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 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Advertising Cost, Expense Method [Fixed List] Expensed as incurred Expensed as incurred Expensed as incurred Expensed as incurred
Direct Salaries and Related Costs [Member]        
Organization Consolidation And Presentation Of Financial Statements [Line Items]        
Customer-acquisition advertising costs $ 9,826 $ 10,036 $ 20,008 $ 22,140
v3.20.2
Revenues - Revenues from Contracts with Customers Disaggregated by Service Type (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Disaggregation of Revenue [Line Items]        
Revenues $ 416,833 $ 389,006 $ 827,999 $ 791,931
% of Revenues 100.00% 100.00% 100.00% 100.00%
Americas [Member]        
Disaggregation of Revenue [Line Items]        
Revenues $ 339,272 $ 310,307 $ 672,198 $ 635,084
% of Revenues 81.40% 79.80% 81.20% 80.20%
Americas [Member] | Customer Engagement Solutions and Services [Member]        
Disaggregation of Revenue [Line Items]        
Revenues $ 338,963 $ 310,070 $ 671,577 $ 634,632
% of Revenues 81.30% 79.80% 81.10% 80.20%
Americas [Member] | Other Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Revenues $ 309 $ 237 $ 621 $ 452
% of Revenues 0.10% 0.00% 0.10% 0.00%
EMEA [Member]        
Disaggregation of Revenue [Line Items]        
Revenues $ 77,561 $ 78,676 $ 155,794 $ 156,804
% of Revenues 18.60% 20.20% 18.80% 19.80%
EMEA [Member] | Customer Engagement Solutions and Services [Member]        
Disaggregation of Revenue [Line Items]        
Revenues $ 73,285 $ 68,643 $ 145,918 $ 139,640
% of Revenues 17.60% 17.60% 17.60% 17.60%
EMEA [Member] | Other Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Revenues $ 4,276 $ 10,033 $ 9,876 $ 17,164
% of Revenues 1.00% 2.60% 1.20% 2.20%
Other Segment [Member]        
Disaggregation of Revenue [Line Items]        
Revenues   $ 23 $ 7 $ 43
% of Revenues 0.00% 0.00% 0.00% 0.00%
Other Segment [Member] | Other Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Revenues   $ 23 $ 7 $ 43
% of Revenues 0.00% 0.00% 0.00% 0.00%
v3.20.2
Revenues - Summary of Trade Accounts Receivable, Net (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net $ 395,613 $ 401,632
Receivables, Net [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net, current 368,693 375,136
Deferred Charges and Other Assets [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net, noncurrent $ 26,920 $ 26,496
v3.20.2
Revenues - Components of Deferred Revenue and Customer Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Schedule of Deferred Revenue and Customer Liabilities [Line Items]    
Deferred revenue and customer liabilities $ 24,294 $ 26,621
Deferred Revenue and Customer Liabilities [Member]    
Schedule of Deferred Revenue and Customer Liabilities [Line Items]    
Deferred revenue 3,475 3,012
Customer arrangements with termination rights 14,554 15,024
Estimated refund liabilities $ 6,265 $ 8,585
v3.20.2
Revenues - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Revenue From Contract With Customer [Abstract]        
Deferred revenue recognized in the period $ 0.2 $ 0.3 $ 2.9 $ 3.4
Revenue remaining performance obligation expected timing of satisfaction explanation     The Company expects to recognize the majority of its deferred revenue as of June 30, 2020 over the next 180 days.  
Estimated refund liabilities timing of resolution explanation     Estimated refund liabilities are generally resolved within 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency.  
v3.20.2
Leases - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
Lessee Lease Description [Line Items]              
Operating lease right-of-use assets $ 188,676,000   $ 188,676,000   $ 205,112,000    
Operating lease, liability 202,260,000   202,260,000        
Finance lease 0   0        
General and Administrative [Member]              
Lessee Lease Description [Line Items]              
Lease costs, net $ 15,500,000 $ 16,200,000 $ 31,500,000 $ 32,100,000      
Cumulative Effect, Period of Adoption, Adjustment [Member]              
Lessee Lease Description [Line Items]              
Cumulative effect of accounting change             $ 110,000
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]              
Lessee Lease Description [Line Items]              
Cumulative effect of accounting change             110,000
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     us-gaap:AccountingStandardsUpdate201602CumulativeEffectPeriodOfAdoptionMember        
Operating lease right-of-use assets           $ 225,300,000  
Operating lease, liability           239,300,000  
Derecognition of straight line lease liabilities net           $ 14,100,000  
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]              
Lessee Lease Description [Line Items]              
Cumulative effect of accounting change             $ 100,000
v3.20.2
Leases - Schedule of Additional Supplemental Information Related to Leases (Detail)
Jun. 30, 2020
Dec. 31, 2019
Leases [Abstract]    
Weighted average remaining lease term of operating leases 4 years 9 months 18 days 5 years 1 month 6 days
Weighted average discount rate of operating leases 3.50% 3.70%
v3.20.2
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Operating Lease Liabilities Payments Due [Abstract]    
2020 (remainder of the year) $ 28,288  
2021 58,340  
2022 44,905  
2023 30,407  
2024 21,307  
2025 and thereafter 37,962  
Total future lease payments 221,209  
Less: Imputed interest 18,949  
Present value of future lease payments 202,260  
Less: Operating lease liabilities 54,948 $ 50,863
Long-term operating lease liabilities $ 147,312 $ 166,810
v3.20.2
Costs Associated with Exit or Disposal Activities - Additional Information (Detail) - Americas [Member]
$ in Millions
Jun. 30, 2020
USD ($)
Dec. 31, 2018
Seat
Restructuring Cost And Reserve [Line Items]    
Total cash payment related to restructuring $ 12.8  
2018 Exit Plan [Member]    
Restructuring Cost And Reserve [Line Items]    
Reduction in number of seats | Seat   5,000
Total cash payment related to restructuring 10.5  
2019 Exit Plan [Member]    
Restructuring Cost And Reserve [Line Items]    
Total cash payment related to restructuring $ 2.3  
v3.20.2
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
Jun. 30, 2020
USD ($)
2018 Exit Plan [Member]  
Restructuring Cost And Reserve [Line Items]  
Cumulative Costs Expected and Incurred to Date $ 17,411
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 1,037
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 4,170
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 2,153
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
v3.20.2
Costs Associated with Exit or Disposal Activities - Summary of Accrued Liability and Related Activity (Detail) - Americas [Member] - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
2018 Exit Plan [Member]    
Restructuring Reserve [Roll Forward]    
Balance at the beginning of the period $ 657 $ 2,586
Cash payments (294) (900)
Balance at the end of the period 351 351
Balance sheet reclassifications   (1,338)
2018 Exit Plan [Member] | Direct Salaries and Related Costs [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges (reversals) (3) (3)
2018 Exit Plan [Member] | General and Administrative [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges (reversals) (9) 6
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member]    
Restructuring Reserve [Roll Forward]    
Balance at the beginning of the period 162 1,769
Cash payments (33) (298)
Balance at the end of the period 129 129
Balance sheet reclassifications   (1,338)
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges (reversals)   (4)
2018 Exit Plan [Member] | Severance and Related Costs [Member]    
Restructuring Reserve [Roll Forward]    
Balance at the beginning of the period 495 817
Cash payments (261) (602)
Balance at the end of the period 222 222
2018 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges (reversals) (3) (3)
2018 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges (reversals) (9) 10
2019 Exit Plan [Member]    
Restructuring Reserve [Roll Forward]    
Balance at the beginning of the period 1,040 0
Cash payments (742) (799)
Balance at the end of the period 1,615 1,615
2019 Exit Plan [Member] | Direct Salaries and Related Costs [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges (reversals) 184 191
2019 Exit Plan [Member] | General and Administrative [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges (reversals) 1,133 2,223
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member]    
Restructuring Reserve [Roll Forward]    
Balance at the beginning of the period 0 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 54
2019 Exit Plan [Member] | Severance and Related Costs [Member]    
Restructuring Reserve [Roll Forward]    
Balance at the beginning of the period 1,040 0
Cash payments (742) (799)
Balance at the end of the period 1,561 1,561
2019 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges (reversals) 184 191
2019 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges (reversals) $ 1,079 $ 2,169
v3.20.2
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
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
2018 Exit Plan [Member]          
Restructuring Cost And Reserve [Line Items]          
Restructuring reserve $ 67 $ 87 $ 351 $ 657 $ 2,586
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member]          
Restructuring Cost And Reserve [Line Items]          
Restructuring reserve 67 81 129 162 1,769
2018 Exit Plan [Member] | Severance and Related Costs [Member]          
Restructuring Cost And Reserve [Line Items]          
Restructuring reserve   6 222 495 817
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 $ 67 54      
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   27      
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   6      
2019 Exit Plan [Member]          
Restructuring Cost And Reserve [Line Items]          
Restructuring reserve   481 1,615 1,040 0
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member]          
Restructuring Cost And Reserve [Line Items]          
Restructuring reserve     54 0 0
2019 Exit Plan [Member] | Severance and Related Costs [Member]          
Restructuring Cost And Reserve [Line Items]          
Restructuring reserve   481 $ 1,561 $ 1,040 $ 0
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   $ 479      
v3.20.2
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Assets:    
Derivative Assets $ 1,833 $ 3,607
Total assets 15,850 17,534
Liabilities:    
Derivative Liabilities 622 251
Total liabilities 622 251
Quoted Prices in Active Markets For Identical Assets Level 1 [Member]    
Assets:    
Total assets 14,017 13,927
Liabilities:    
Total liabilities 0 0
Significant Other Observable Inputs Level 2 [Member]    
Assets:    
Total assets 1,833 3,607
Liabilities:    
Total liabilities 622 251
Significant Unobservable Inputs Level 3 [Member]    
Assets:    
Total assets 0 0
Liabilities:    
Total liabilities 0 0
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 8,711 9,125
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Quoted Prices in Active Markets For Identical Assets Level 1 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 8,711 9,125
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Other Observable Inputs Level 2 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 0 0
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Unobservable Inputs Level 3 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 0 0
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 5,306 4,802
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Quoted Prices in Active Markets For Identical Assets Level 1 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 5,306 4,802
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Other Observable Inputs Level 2 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 0 0
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Unobservable Inputs Level 3 [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 0 0
Foreign Currency Contracts [Member]    
Assets:    
Derivative Assets 1,833 3,607
Liabilities:    
Derivative Liabilities 622 251
Foreign Currency Contracts [Member] | Quoted Prices in Active Markets For Identical Assets Level 1 [Member]    
Assets:    
Derivative Assets 0 0
Liabilities:    
Derivative Liabilities 0 0
Foreign Currency Contracts [Member] | Significant Other Observable Inputs Level 2 [Member]    
Assets:    
Derivative Assets 1,833 3,607
Liabilities:    
Derivative Liabilities 622 251
Foreign Currency Contracts [Member] | Significant Unobservable Inputs Level 3 [Member]    
Assets:    
Derivative Assets 0 0
Liabilities:    
Derivative Liabilities $ 0 $ 0
v3.20.2
Fair Value - Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]        
Impairment of long-lived assets $ 1,800 $ 129 $ 1,800 $ 1,711
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 1,040 $ 129 1,040 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 $ 760   $ 760 $ 343
v3.20.2
Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 291,225 $ 295,805
Accumulated Amortization (142,652) (137,385)
Net Intangibles $ 148,573 $ 158,420
Weighted Average Amortization Period (years) 4 years 5 years
Customer Relationships [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 188,875 $ 191,171
Accumulated Amortization (126,829) (121,074)
Net Intangibles $ 62,046 $ 70,097
Weighted Average Amortization Period (years) 10 years 10 years
Trade Name and Trademarks [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 19,123 $ 19,380
Accumulated Amortization (14,043) (12,929)
Net Intangibles $ 5,080 $ 6,451
Weighted Average Amortization Period (years) 8 years 8 years
Non-Compete Agreements [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 923 $ 2,769
Accumulated Amortization (508) (2,181)
Net Intangibles $ 415 $ 588
Weighted Average Amortization Period (years) 3 years 3 years
Content Library [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 507 $ 506
Accumulated Amortization $ (507) $ (506)
Weighted Average Amortization Period (years) 2 years 2 years
Proprietary Software [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 870 $ 870
Accumulated Amortization (765) (695)
Net Intangibles $ 105 $ 175
Weighted Average Amortization Period (years) 5 years 5 years
Domain Names Not Subject To Amortization [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 80,927 $ 81,109
Net Intangibles $ 80,927 $ 81,109
v3.20.2
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail)
$ in Thousands
Jun. 30, 2020
USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]  
2020 (remainder of the year) $ 5,706
2021 9,341
2022 8,057
2023 7,220
2024 6,975
2025 6,851
2026 and thereafter $ 23,496
v3.20.2
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Goodwill [Line Items]    
Beginning Balance, Goodwill Net $ 311,247 $ 302,517
Acquisition-Related 0 3,623
Effect of Foreign Currency (4,535) 5,107
Ending Balance, Goodwill Net 306,712 311,247
Americas [Member]    
Goodwill [Line Items]    
Beginning Balance, Goodwill Net 259,953 255,436
Acquisition-Related 0 1,202
Effect of Foreign Currency (2,038) 3,315
Ending Balance, Goodwill Net 257,915 259,953
EMEA [Member]    
Goodwill [Line Items]    
Beginning Balance, Goodwill Net 51,294 47,081
Acquisition-Related 0 2,421
Effect of Foreign Currency (2,497) 1,792
Ending Balance, Goodwill Net $ 48,797 $ 51,294
v3.20.2
Goodwill and Intangible Assets - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2020
USD ($)
Reporting_Unit
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Goodwill [Line Items]      
Number of reporting units | Reporting_Unit 8    
Number of reporting units including goodwill | Reporting_Unit 7    
Number of reporting units, fair value in excess of carrying value | Reporting_Unit 3    
Goodwill $ 306,712,000 $ 311,247,000 $ 302,517,000
Clearlink [Member]      
Goodwill [Line Items]      
Goodwill Impairment Loss 0    
Goodwill 74,200,000    
Symphony [Member]      
Goodwill [Line Items]      
Goodwill Impairment Loss 0    
Goodwill 39,000,000.0    
Latin America [Member]      
Goodwill [Line Items]      
Goodwill Impairment Loss 0    
Goodwill 18,900,000    
Qelp [Member]      
Goodwill [Line Items]      
Goodwill Impairment Loss 0    
Goodwill $ 9,800,000    
v3.20.2
Financial Derivatives - Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges (Detail) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]    
Deferred gains (losses) in AOCI $ 740 $ 2,221
Tax on deferred gains (losses) in AOCI (45) 69
Deferred gains (losses) in AOCI, net of taxes 695 $ 2,290
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months $ 690  
v3.20.2
Financial Derivatives - Outstanding Foreign Currency Forward Contracts and Options (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
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 $ 40,000 $ 74,000
Settle Through Date Dec. 31, 2020 Dec. 31, 2020
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 $ 64,000 $ 42,000
Settle Through Date Aug. 31, 2021 Dec. 31, 2020
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Hungarian Forints [Member]    
Derivative [Line Items]    
Notional Amount $ 1,751  
Settle Through Date Dec. 31, 2020  
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Romanian Leis [Member]    
Derivative [Line Items]    
Notional Amount $ 7,556  
Settle Through Date Dec. 31, 2020  
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Forwards [Member]    
Derivative [Line Items]    
Notional Amount $ 9,405 $ 19,295
Settle Through Date Nov. 30, 2021 Nov. 30, 2021
v3.20.2
Financial Derivatives - Additional Information (Detail) - USD ($)
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]    
Maximum amount of loss due to credit risk $ 1,800,000 $ 3,600,000
Total net settlement amount asset positions 1,500,000 3,400,000
Total net settlement amount liability positions $ 300,000 $ 0
v3.20.2
Financial Derivatives - Derivative Instruments Fair Value (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Derivatives, Fair Value [Line Items]    
Derivative Assets $ 1,833 $ 3,607
Derivative Liabilities 622 251
Foreign Currency Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 1,833 3,607
Derivative Liabilities 622 251
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 53 322
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Deferred Charges and Other Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 52 234
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   113
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 1,728 3,051
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 1,678 3,051
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Deferred Charges and Other Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 50  
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 $ 622 $ 138
v3.20.2
Financial Derivatives - Effect of Company's Derivative Instruments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Derivative Instruments, Gain (Loss) [Line Items]        
Revenues $ 416,833 $ 389,006 $ 827,999 $ 791,931
Gains (losses) recognized from derivatives (164) (432) (410) (465)
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: 1,179 3,586 868 4,769
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: 1,438 631 2,364 130
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Gains (losses) recognized from derivatives $ (164) $ (432) $ (410) $ (465)
v3.20.2
Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) - Mutual Funds [Member] - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Mutual funds, Cost $ 10,170 $ 9,777
Other Current Assets [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Mutual funds, Fair Value $ 14,017 $ 13,927
v3.20.2
Investments Held in Rabbi Trust - Additional Information (Detail)
Jun. 30, 2020
Equity-Based Securities [Member]  
Schedule of Trading Securities and Other Trading Assets [Line Items]  
Mutual funds held in rabbi trust 62.00%
Debt-Based Securities [Member]  
Schedule of Trading Securities and Other Trading Assets [Line Items]  
Mutual funds held in rabbi trust 38.00%
v3.20.2
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 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Schedule of Trading Securities and Other Trading Assets [Line Items]        
Net realized gains (losses) from sale of trading securities $ 12 $ 5 $ 62 $ 66
Dividend and interest income 48 53 81 82
Net unrealized holding gains (losses) 1,756 368 (384) 1,458
Net investment income (losses) $ 1,816 $ 426 $ (241) $ 1,606
v3.20.2
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance $ 874,475 $ 826,609
Pre-tax amount (12,111) 12,548
Tax (provision) benefit (177) (3)
Reclassification of (gain) loss to net income (2,391) (2,771)
Ending Balance 862,785 874,475
Foreign Currency Translation Adjustments [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance (52,749) (58,253)
Pre-tax amount (12,979) 5,462
Foreign currency translation (60) 42
Ending Balance (65,788) (52,749)
Unrealized Gain (Loss) on Net Investment Hedge [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance 1,046 1,046
Ending Balance 1,046 1,046
Unrealized Gain (Loss) on Cash Flow Hedging Instruments [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance 2,290 (1,864)
Pre-tax amount 868 6,978
Tax (provision) benefit (184) 20
Reclassification of (gain) loss to net income (2,294) (2,719)
Foreign currency translation 15 (125)
Ending Balance 695 2,290
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance 2,324 2,256
Pre-tax amount   108
Tax (provision) benefit 7 (23)
Reclassification of (gain) loss to net income (53) (100)
Foreign currency translation 45 83
Ending Balance 2,323 2,324
Unrealized Gain (Loss) on Postretirement Obligation [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance 88 40
Reclassification of (gain) loss to net income (44) 48
Ending Balance 44 88
Accumulated Other Comprehensive Income (Loss) [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance (47,001) (56,775)
Ending Balance $ (61,680) $ (47,001)
v3.20.2
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Pre-tax amount $ 28,615 $ 13,735 $ 47,759 $ 30,104
Tax (provision) benefit 6,385 2,466 11,611 7,148
Reclassification of gain (loss) to net income 22,230 11,269 36,148 22,956
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 1,445 625 2,391 143
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 (42) (35) (70) (45)
Reclassification of gain (loss) to net income 1,396 596 2,294 85
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 4 3 7 6
Reclassification of gain (loss) to net income 27 24 53 48
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 1,438 631 2,364 130
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 23 21 46 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 $ 22 $ 5 $ 44 $ 10
v3.20.2
Income Taxes - Summary of Effective Tax Rates (Detail)
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Tax Disclosure [Abstract]        
Effective tax rate 22.30% 18.00% 24.30% 23.70%
v3.20.2
Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2020
Income Tax Disclosure [Abstract]    
Statutory federal income tax rate 21.00% 21.00%
Discrete tax benefit $ (0.6)  
v3.20.2
Earnings Per Share - Numbers of Shares Used in Earnings Per Share Computation (Detail) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Basic:        
Weighted average common shares outstanding 40,318 42,038 40,726 42,107
Diluted:        
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust 62 56 131 93
Total weighted average diluted shares outstanding 40,380 42,094 40,857 42,200
Anti-dilutive shares excluded from the diluted earnings per share calculation 101 207 51 164
v3.20.2
Earnings Per Share - Additional Information (Detail) - 2011 Share Repurchase Program [Member] - shares
 3 Months Ended 6 Months Ended 106 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
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 500,000 771,000 1,360,000 771,000 7,800,000    
Increase in shares authorized for repurchase           5,000,000.0  
v3.20.2
Earnings Per Share - Shares Repurchased (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended 106 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Schedule Of Shares Repurchased [Line Items]            
Total Cost of Shares Repurchased $ 13,019 $ 22,909 $ 20,178 $ 35,928 $ 20,178  
Minimum [Member]            
Schedule Of Shares Repurchased [Line Items]            
Range of Prices Paid Per Share $ 23.90   $ 24.72 $ 23.33 $ 24.72  
Maximum [Member]            
Schedule Of Shares Repurchased [Line Items]            
Range of Prices Paid Per Share $ 27.94   $ 27.30 $ 31.91 $ 27.30  
2011 Share Repurchase Program [Member]            
Schedule Of Shares Repurchased [Line Items]            
Total Number of Shares Repurchased 500   771 1,360 771 7,800
v3.20.2
Commitments and Loss Contingencies - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2020
USD ($)
Minimum [Member]  
Long-term Purchase Commitment [Line Items]  
Term of agreements with third party vendors 1 year
Maximum [Member]  
Long-term Purchase Commitment [Line Items]  
Term of agreements with third party vendors 5 years
Loss Contingency, net of federal benefit $ 1,900,000
v3.20.2
Defined Benefit Pension Plan and Postretirement Benefits - Net Periodic Benefit Cost for Pension Plans (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Defined Benefit Plan Net Periodic Benefit Cost [Abstract]        
Service cost $ 108 $ 100 $ 213 $ 198
Interest cost 52 62 103 124
Recognized actuarial (gains) (23) (21) (46) (42)
Net periodic benefit cost $ 137 $ 141 $ 270 $ 280
v3.20.2
Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2020
Most Employees 401(k) Plan [Member]  
Pension Plans, Postretirement and Other Employee Benefits [Line Items]  
401(k) plan, most employees, maximum employer matching contribution, percent of employee's gross pay 4.00%
Most Employees 401(k) Plan [Member] | Next Eligible Compensation  
Pension Plans, Postretirement and Other Employee Benefits [Line Items]  
401(k) plan, most employees, employer matching contribution, percent of match 50.00%
401(k) plan, most employees, employer matching contribution, percent of employees' gross pay 2.00%
Most Employees 401(k) Plan [Member] | First Eligible Compensation  
Pension Plans, Postretirement and Other Employee Benefits [Line Items]  
401(k) plan, most employees, employer matching contribution, percent of match 100.00%
401(k) plan, most employees, employer matching contribution, percent of employees' gross pay 3.00%
Highly Compensated Employees 401(k) Plan [Member]  
Pension Plans, Postretirement and Other Employee Benefits [Line Items]  
401(k) plan, most employees, employer matching contribution, percent of match 50.00%
401(k) plan, most employees, employer matching contribution, percent of employees' gross pay 4.00%
401(k) plan, most employees, maximum employer matching contribution, percent of employee's gross pay 2.00%
v3.20.2
Defined Benefit Pension Plan and Postretirement Benefits - Company's Contributions to Employee Retirement Savings Plans (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Compensation And Retirement Disclosure [Abstract]        
401(k) plan contributions $ 711 $ 419 $ 1,491 $ 885
v3.20.2
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 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
General and Administrative [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation (expense) $ (2,042) $ (2,200) $ (3,902) $ (4,090)
Income Taxes [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Income tax benefit $ 490 $ 528 $ 936 $ 982
v3.20.2
Stock-Based Compensation - Additional Information (Detail) - Equity Incentive Plan [Member]
 6 Months Ended
Jun. 30, 2020
$ / shares
shares
Performance-Based Restricted Shares/Restricted Stock Units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares granted | shares 0.4
Weighted average grant-date fair value | $ / shares $ 25.60
Employment-Based Restricted Shares/Restricted Stock Units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares granted | shares 0.2
Weighted average grant-date fair value | $ / shares $ 25.60
v3.20.2
Segments and Geographic Information - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2020
Segment
Region
Segment Reporting [Abstract]  
Number of operating regions | Region 2
Number of reportable segments | Segment 2
v3.20.2
Segments and Geographic Information - Company's Reportable Segments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Segment Reporting Information [Line Items]        
Revenues $ 416,833 $ 389,006 $ 827,999 $ 791,931
Percentage of revenues 100.00% 100.00% 100.00% 100.00%
Depreciation, net $ 12,630 $ 13,052 $ 25,091 $ 26,949
Amortization of intangibles 4,093 4,127 8,212 8,413
Income (loss) from operations 27,213 15,255 51,607 32,007
Total other income (expense), net 1,402 (1,520) (3,848) (1,903)
Income taxes (6,385) (2,466) (11,611) (7,148)
Net income 22,230 11,269 36,148 22,956
Americas [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 339,272 $ 310,307 $ 672,198 $ 635,084
Percentage of revenues 81.40% 79.80% 81.20% 80.20%
Americas [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 339,272 $ 310,307 $ 672,198 $ 635,084
Percentage of revenues 81.40% 79.80% 81.20% 80.20%
Depreciation, net $ 10,088 $ 10,659 $ 20,121 $ 22,166
Amortization of intangibles 3,281 3,288 6,567 6,726
Income (loss) from operations 40,479 26,584 76,258 56,652
EMEA [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 77,561 $ 78,676 $ 155,794 $ 156,804
Percentage of revenues 18.60% 20.20% 18.80% 19.80%
EMEA [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 77,561 $ 78,676 $ 155,794 $ 156,804
Percentage of revenues 18.60% 20.20% 18.80% 19.80%
Depreciation, net $ 1,818 $ 1,628 $ 3,523 $ 3,254
Amortization of intangibles 812 839 1,645 1,687
Income (loss) from operations $ 4,078 4,661 7,258 6,152
Other Segment [Member]        
Segment Reporting Information [Line Items]        
Revenues   $ 23 $ 7 $ 43
Percentage of revenues 0.00% 0.00% 0.00% 0.00%
Depreciation, net $ 724 $ 765 $ 1,447 $ 1,529
Income (loss) from operations (17,344) (15,990) (31,909) (30,797)
Total other income (expense), net 1,402 (1,520) (3,848) (1,903)
Income taxes $ (6,385) $ (2,466) $ (11,611) $ (7,148)
v3.20.2
Segments and Geographic Information - Operation by Delivery Location (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Segment Reporting Information [Line Items]        
Revenues $ 416,833 $ 389,006 $ 827,999 $ 791,931
Americas [Member]        
Segment Reporting Information [Line Items]        
Revenues 339,272 310,307 672,198 635,084
Americas [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues 339,272 310,307 672,198 635,084
Americas [Member] | Operating Segments [Member] | United States [Member]        
Segment Reporting Information [Line Items]        
Revenues 164,773 144,736 322,437 306,768
Americas [Member] | Operating Segments [Member] | The Philippines [Member]        
Segment Reporting Information [Line Items]        
Revenues 62,567 58,793 127,006 114,871
Americas [Member] | Operating Segments [Member] | Costa Rica [Member]        
Segment Reporting Information [Line Items]        
Revenues 39,250 31,579 74,131 62,296
Americas [Member] | Operating Segments [Member] | Canada [Member]        
Segment Reporting Information [Line Items]        
Revenues 22,955 24,506 48,196 50,070
Americas [Member] | Operating Segments [Member] | El Salvador [Member]        
Segment Reporting Information [Line Items]        
Revenues 16,902 20,067 35,622 40,543
Americas [Member] | Operating Segments [Member] | Other [Member]        
Segment Reporting Information [Line Items]        
Revenues 32,825 30,626 64,806 60,536
EMEA [Member]        
Segment Reporting Information [Line Items]        
Revenues 77,561 78,676 155,794 156,804
EMEA [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues 77,561 78,676 155,794 156,804
EMEA [Member] | Operating Segments [Member] | Other [Member]        
Segment Reporting Information [Line Items]        
Revenues 53,445 55,863 107,027 110,127
EMEA [Member] | Operating Segments [Member] | Germany [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 24,116 22,813 48,767 46,677
Other Segment [Member]        
Segment Reporting Information [Line Items]        
Revenues   $ 23 $ 7 $ 43
v3.20.2
Other Income (Expense) - Other Income (Expense), Net (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Other Nonoperating Income Expense [Abstract]        
Foreign currency transaction gains (losses) $ 48 $ (361) $ (1,558) $ (537)
Gains (losses) on derivative instruments not designated as hedges (164) (432) (410) (465)
Other miscellaneous income (expense) 97 (166) (787) (527)
Other income (expense) 1,797 (533) (2,996) 77
Other Income (Expense), Net [Member]        
Other Nonoperating Income Expense [Abstract]        
Net investment gains (losses) on investments held in rabbi trust $ 1,816 $ 426 $ (241) $ 1,606
v3.20.2
Related Party Transactions - Additional Information (Detail) - John H. Sykes [Member] - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Jan. 31, 2008
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Schedule of Other Related Party Transactions [Line Items]          
Duration of lease 20 years        
Payment to landlord under the lease terms   $ 0.1 $ 0.1 $ 0.2 $ 0.2
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.