SYKES ENTERPRISES INC, 10-K filed on 2/19/2015
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2014
Feb. 6, 2015
Jun. 30, 2014
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2014 
 
 
Document Fiscal Year Focus
2014 
 
 
Document Fiscal Period Focus
FY 
 
 
Trading Symbol
SYKE 
 
 
Entity Registrant Name
SYKES ENTERPRISES INC 
 
 
Entity Central Index Key
0001010612 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
43,291,264 
 
Entity Public Float
 
 
$ 920,160,566 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Current assets:
 
 
Cash and cash equivalents
$ 215,137 
$ 211,985 
Receivables, net
290,397 
264,916 
Prepaid expenses
14,896 
15,710 
Other current assets
29,656 
20,672 
Total current assets
550,086 
513,283 
Property and equipment, net
109,880 
117,549 
Goodwill, net
193,831 
199,802 
Intangibles, net
60,620 
76,055 
Deferred charges and other assets
30,083 
43,572 
Total assets
944,500 
950,261 
Current liabilities:
 
 
Accounts payable
25,523 
25,540 
Accrued employee compensation and benefits
82,072 
81,064 
Current deferred income tax liabilities
144 
84 
Income taxes payable
3,662 
1,274 
Deferred revenue
34,245 
35,025 
Other accrued expenses and current liabilities
22,216 
30,393 
Total current liabilities
167,862 
173,380 
Deferred grants
5,110 
6,637 
Long-term debt
75,000 
98,000 
Long-term income tax liabilities
20,630 
24,647 
Other long-term liabilities
17,680 
11,893 
Total liabilities
286,282 
314,557 
Commitments and loss contingency (Note 24)
   
   
Shareholders' equity:
 
 
Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued and outstanding
   
   
Common stock, $0.01 par value, 200,000 shares authorized; 43,291 and 43,997 shares issued, respectively
433 
440 
Additional paid-in capital
279,288 
279,513 
Retained earnings
400,514 
349,366 
Accumulated other comprehensive income (loss)
(20,561)
7,997 
Treasury stock at cost: 132 and 122 shares, respectively
(1,456)
(1,612)
Total shareholders' equity
658,218 
635,704 
Total liabilities and shareholders' equity
$ 944,500 
$ 950,261 
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2014
Dec. 31, 2013
Statement of Financial Position [Abstract]
 
 
Preferred stock, par value
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
10,000,000 
10,000,000 
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
200,000,000 
200,000,000 
Common stock, shares issued
43,291,000 
43,997,000 
Treasury stock, shares
132,000 
122,000 
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Statement [Abstract]
 
 
 
Revenues
$ 1,327,523 
$ 1,263,460 
$ 1,127,698 
Operating expenses:
 
 
 
Direct salaries and related costs
892,110 
855,266 
737,952 
General and administrative
298,040 
297,519 
290,373 
Depreciation, net
45,363 
42,084 
40,369 
Amortization of intangibles
14,396 
14,863 
10,479 
Net (gain) loss on disposal of property and equipment
(2,030)
201 
391 
Impairment of long-lived assets
89 
 
355 
Total operating expenses
1,247,968 
1,209,933 
1,079,919 
Income from continuing operations
79,555 
53,527 
47,779 
Other income (expense):
 
 
 
Interest income
958 
866 
1,458 
Interest (expense)
(2,011)
(2,307)
(1,547)
Other income (expense)
(1,343)
(761)
(2,533)
Total other income (expense)
(2,396)
(2,202)
(2,622)
Income from continuing operations before income taxes
77,159 
51,325 
45,157 
Income taxes
19,368 
14,065 
5,207 
Income from continuing operations, net of taxes
57,791 
37,260 
39,950 
(Loss) from discontinued operations, net of taxes
 
 
(820)
(Loss) on sale of discontinued operations, net of taxes
 
 
(10,707)
Net income
$ 57,791 
$ 37,260 
$ 28,423 
Basic:
 
 
 
Continuing operations
$ 1.36 
$ 0.87 
$ 0.93 
Discontinued operations
 
 
$ (0.27)
Net income (loss) per common share
$ 1.36 
$ 0.87 
$ 0.66 
Diluted:
 
 
 
Continuing operations
$ 1.35 
$ 0.87 
$ 0.93 
Discontinued operations
 
 
$ (0.27)
Net income (loss) per common share
$ 1.35 
$ 0.87 
$ 0.66 
Weighted average common shares outstanding:
 
 
 
Basic
42,609 
42,877 
43,105 
Diluted
42,814 
42,925 
43,148 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
 
 
 
Net income
$ 57,791 
$ 37,260 
$ 28,423 
Other comprehensive income (loss), net of taxes:
 
 
 
Foreign currency translation gain (loss), net of taxes
(34,827)
(3,332)
10,088 
Unrealized gain (loss) on net investment hedges, net of taxes
3,959 
(1,118)
 
Unrealized actuarial gain (loss) related to pension liability, net of taxes
(142)
(263)
428 
Unrealized gain (loss) on cash flow hedging instruments, net of taxes
2,424 
(1,965)
(132)
Unrealized gain (loss) on postretirement obligation, net of taxes
28 
(181)
36 
Other comprehensive income (loss), net of taxes
(28,558)
(6,859)
10,420 
Comprehensive income (loss)
$ 29,233 
$ 30,401 
$ 38,843 
Consolidated Statements of Changes in Shareholders Equity (USD $)
In Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
Beginning Balance at Dec. 31, 2011
$ 573,566 
$ 443 
$ 281,157 
$ 291,803 
$ 4,436 
$ (4,273)
Beginning Balance, shares at Dec. 31, 2011
 
44,306 
 
 
 
 
Stock-based compensation expense
3,467 
 
3,467 
 
 
 
Excess tax benefit (deficiency) from stock-based compensation
(292)
 
(292)
 
 
 
Net vesting (forfeitures) of common stock and restricted stock under equity award plans
(1,412)
(1,195)
 
 
(220)
Net vesting (forfeitures) of common stock and restricted stock under equity award plans, shares
 
229 
 
 
 
 
Repurchase of common stock
(7,908)
 
 
 
 
(7,908)
Retirement of treasury stock
 
(8)
(5,945)
(5,039)
 
10,992 
Retirement of treasury stock, shares
 
(745)
 
 
 
 
Comprehensive income (loss)
38,843 
 
 
28,423 
10,420 
 
Ending Balance at Dec. 31, 2012
606,264 
438 
277,192 
315,187 
14,856 
(1,409)
Ending Balance, shares at Dec. 31, 2012
 
43,790 
 
 
 
 
Issuance of common stock
59 
 
59 
 
 
 
Issuance of common stock, shares
 
10 
 
 
 
 
Stock-based compensation expense
4,873 
 
4,873 
 
 
 
Excess tax benefit (deficiency) from stock-based compensation
(187)
 
(187)
 
 
 
Net vesting (forfeitures) of common stock and restricted stock under equity award plans
(227)
(29)
 
 
(203)
Net vesting (forfeitures) of common stock and restricted stock under equity award plans, shares
 
538 
 
 
 
 
Repurchase of common stock
(5,479)
 
 
 
 
(5,479)
Retirement of treasury stock
 
(3)
(2,395)
(3,081)
 
5,479 
Retirement of treasury stock, shares
 
(341)
 
 
 
 
Comprehensive income (loss)
30,401 
 
 
37,260 
(6,859)
 
Ending Balance at Dec. 31, 2013
635,704 
440 
279,513 
349,366 
7,997 
(1,612)
Ending Balance, shares at Dec. 31, 2013
 
43,997 
 
 
 
 
Stock-based compensation expense
6,381 
 
6,381 
 
 
 
Excess tax benefit (deficiency) from stock-based compensation
(82)
 
(82)
 
 
 
Net vesting (forfeitures) of common stock and restricted stock under equity award plans
(437)
(1)
(592)
 
 
156 
Net vesting (forfeitures) of common stock and restricted stock under equity award plans, shares
 
(76)
 
 
 
 
Repurchase of common stock
(12,581)
 
 
 
 
(12,581)
Retirement of treasury stock
 
(6)
(5,932)
(6,643)
 
12,581 
Retirement of treasury stock, shares
 
(630)
 
 
 
 
Comprehensive income (loss)
29,233 
 
 
57,791 
(28,558)
 
Ending Balance at Dec. 31, 2014
$ 658,218 
$ 433 
$ 279,288 
$ 400,514 
$ (20,561)
$ (1,456)
Ending Balance, shares at Dec. 31, 2014
 
43,291 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities :
 
 
 
Net income
$ 57,791 
$ 37,260 
$ 28,423 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
46,255 
43,094 
41,570 
Amortization of intangibles
14,396 
14,863 
10,479 
Amortization of deferred grants
(1,348)
(1,148)
(1,201)
Impairment losses
89 
 
355 
Unrealized foreign currency transaction (gains) losses, net
119 
6,302 
2,131 
Stock-based compensation expense
6,381 
4,873 
3,467 
Deferred income tax provision (benefit)
4,865 
(362)
(4,867)
Net (gain) loss on disposal of property and equipment
(2,030)
201 
391 
Bad debt expense (reversals)
(181)
483 
1,115 
Unrealized (gains) losses on financial instruments, net
2,352 
(15)
(1,361)
Amortization of deferred loan fees
259 
259 
368 
Loss on sale of discontinued operations
 
 
10,707 
Other
(624)
(56)
294 
Changes in assets and liabilities, net of acquisition:
 
 
 
Receivables
(40,276)
(22,062)
(6,771)
Prepaid expenses
336 
(3,931)
694 
Other current assets
(6,673)
(1,177)
1,705 
Deferred charges and other assets
3,545 
(2,754)
(18,388)
Accounts payable
2,029 
(1,282)
(1,589)
Income taxes receivable / payable
2,609 
804 
1,555 
Accrued employee compensation and benefits
5,179 
9,140 
4,872 
Other accrued expenses and current liabilities
(5,026)
(2,025)
11,476 
Deferred revenue
2,147 
2,826 
(163)
Other long-term liabilities
2,070 
925 
1,252 
Net cash provided by operating activities
94,264 
86,218 
86,514 
Cash flows from investing activities:
 
 
 
Capital expenditures
(44,683)
(59,193)
(38,647)
Cash paid for business acquisition, net of cash acquired
 
 
(147,094)
Proceeds from sale of property and equipment
3,639 
388 
240 
Investment in restricted cash
(7)
(562)
(67)
Release of restricted cash
160 
 
356 
Cash divested on sale of discontinued operations
 
 
(9,100)
Proceeds from insurance settlement
 
 
228 
Net cash (used for) investing activities
(40,891)
(59,367)
(194,084)
Cash flows from financing activities:
 
 
 
Payments of long-term debt
(23,000)
(25,000)
(22,000)
Proceeds from issuance of long-term debt
 
32,000 
113,000 
Proceeds from issuance of common stock
 
59 
 
Cash paid for repurchase of common stock
(12,581)
(5,479)
(7,908)
Proceeds from grants
256 
201 
88 
Shares repurchased for minimum tax withholding on equity awards
(437)
(227)
(1,412)
Cash paid for loan fees related to long-term debt
 
 
(857)
Net cash provided by (used for) financing activities
(35,762)
1,554 
80,911 
Effects of exchange rates on cash and cash equivalents
(14,459)
(3,742)
2,859 
Net increase (decrease) in cash and cash equivalents
3,152 
24,663 
(23,800)
Cash and cash equivalents - beginning
211,985 
187,322 
211,122 
Cash and cash equivalents - ending
215,137 
211,985 
187,322 
Supplemental disclosures of cash flow information:
 
 
 
Cash paid during period for interest
1,716 
2,149 
2,239 
Cash paid during period for income taxes
16,560 
16,889 
28,822 
Non-cash transactions:
 
 
 
Property and equipment additions in accounts payable
5,512 
6,002 
3,782 
Unrealized gain (loss) on postretirement obligation in accumulated other comprehensive income (loss)
$ 28 
$ (181)
$ 36 
Overview and Summary of Significant Accounting Policies
Overview and Summary of Significant Accounting Policies

Note 1. Overview and Summary of Significant Accounting Policies

Business Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) provides comprehensive outsourced customer contact management solutions and services in the business process outsourcing arena to companies, primarily within the communications, financial services, technology/consumer, transportation and leisure, and healthcare industries. SYKES provides flexible, high-quality outsourced customer contact management services (with an emphasis on inbound technical support and customer service), which includes customer assistance, healthcare and roadside assistance, technical support and product sales to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels encompassing phone, e-mail, social media, text messaging and chat. SYKES complements its outsourced customer contact management services with various enterprise support services in the United States that encompass services for a company’s internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services including order processing, payment processing, inventory control, product delivery and product returns handling. The Company has operations in two reportable segments entitled (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, 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; and (2) EMEA, which includes Europe, the Middle East and Africa.

Acquisition In August 2012, the Company completed the acquisition of Alpine Access, Inc. (“Alpine”), a Delaware corporation, pursuant to the Agreement and Plan of Merger, dated July 27, 2012. The Company has reflected the operating results in the Consolidated Statements of Operations since August 20, 2012. See Note 2, Acquisition of Alpine Access, Inc., for additional information on the acquisition of this business.

Discontinued Operations In March 2012, the Company sold its operations in Spain (the “Spanish operations”), pursuant to an asset purchase agreement dated March 29, 2012 and a stock purchase agreement dated March 30, 2012. The Company reflected the operating results related to the Spanish operations as discontinued operations in the Consolidated Statement of Operations for the year ended December 31, 2012. Cash flows from discontinued operations are included in the Consolidated Statement of Cash Flows for the year ended December 31, 2012. See Note 3, Discontinued Operations, for additional information on the sale of the Spanish operations.

Principles of Consolidation The consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.

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

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

Recognition of Revenue The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605 “Revenue Recognition” (“ASC 605”). The Company primarily recognizes revenues from services as the services are performed, which is based on either a per minute, per call, per transaction or per time and material basis, under a fully executed contractual agreement and record reductions to revenues for contractual penalties and holdbacks for failure to meet specified minimum service levels and other performance based contingencies. Revenue recognition is limited to the amount that is not contingent upon delivery of any future product or service or meeting other specified performance conditions. Product sales, accounted for within our fulfillment services, are recognized upon shipment to the customer and satisfaction of all obligations.

 

Revenues from fulfillment services account for 1.4%, 1.3% and 1.5% of total consolidated revenues for the years ended December 31, 2014, 2013 and 2012, respectively, some of which contain multiple-deliverables. The service offerings for these fulfillment service contracts typically include pick-pack-and-ship, warehousing, process management, finished goods assembly and pass-through costs. In accordance with ASC 605-25 “Revenue Recognition — Multiple-Element Arrangements” (“ASC 605-25”) [as amended by Accounting Standards Update (“ASU”) 2009-13 “Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements — a consensus of the FASB Emerging Issues Task Force” (“ASU 2009-13”)], the Company determines if the services provided under these contracts with multiple-deliverables represent separate units of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value, and where return rights exist, delivery or performance of the undelivered items is considered probable and substantially within our control. If those deliverables are determined to be separate units of accounting, revenues from these services are recognized as the services are performed under a fully executed contractual agreement. If those deliverables are not determined to be separate units of accounting, revenue for the delivered services are bundled into a single unit of accounting and recognized on the proportional performance method using the straight-line basis over the contract period, or the actual number of operational seats used to serve the client, as appropriate.

The Company allocates revenue to each of the deliverables based on a selling price hierarchy of vendor specific objective evidence (“VSOE”), third-party evidence, and then estimated selling price. VSOE is based on the price charged when the deliverable is sold separately. Third-party evidence is based on largely interchangeable competitor services in standalone sales to similarly situated customers. Estimated selling price is based on the Company’s best estimate of what the selling prices of deliverables would be if they were sold regularly on a standalone basis. Estimated selling price is established considering multiple factors including, but not limited to, pricing practices in different geographies, service offerings, and customer classifications. Once the Company allocates revenue to each deliverable, the Company recognizes revenue when all revenue recognition criteria are met. As of December 31, 2014, the Company’s fulfillment contracts with multiple-deliverables met the separation criteria as outlined in ASC 605-25 and the revenue was accounted for accordingly. Other than these fulfillment contracts, the Company had no other contracts that contain multiple-deliverables as of December 31, 2014.

Cash and Cash Equivalents — Cash and cash equivalents consist of cash and highly liquid short-term investments. Cash in the amount of $215.1 million and $212.0 million at December 31, 2014 and 2013, respectively, was primarily held in interest bearing investments, which have original maturities of less than 90 days. Cash and cash equivalents of $194.4 million and $195.0 million at December 31, 2014 and 2013, respectively, were held in international operations and may be subject to additional taxes if repatriated to the United States (“U.S.”).

Restricted Cash 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. Restricted cash is included in “Other current assets” and “Deferred charges and other assets” in the accompanying Consolidated Balance Sheets.

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

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

The carrying value of property and equipment to be held and used is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360 “Property, Plant and Equipment.” For purposes of recognition and measurement of an impairment loss, assets are grouped at the lowest levels for which there are identifiable cash flows (the “reporting unit”). An asset is considered to be impaired when the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition does not exceed its carrying amount. The amount of the impairment loss, if any, is measured as the amount by which the carrying value of the asset exceeds its estimated fair value, which is generally determined based on appraisals or sales prices of comparable assets or independent third party offers. Occasionally, the Company redeploys property and equipment from under-utilized centers to other locations to improve capacity utilization if it is determined that the related undiscounted future cash flows in the under-utilized centers would not be sufficient to recover the carrying amount of these assets. Except as discussed in Note 5, Fair Value, the Company determined that its property and equipment were not impaired as of December 31, 2014.

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

Goodwill The Company accounts for goodwill and other intangible assets under ASC 350 “Intangibles — Goodwill and Other” (“ASC 350”). The Company expects to receive future benefits from previously acquired goodwill over an indefinite period of time. For goodwill and other intangible assets with indefinite lives not subject to amortization, the Company reviews goodwill and intangible assets for impairment at least annually in the third quarter, and more frequently in the presence of certain circumstances. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, then the Company is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss, if any.

The Company elected to forgo the option to first assess qualitative factors and completed its annual two-step goodwill impairment test during the three months ended September 30, 2014. Under ASC 350, the carrying value of assets is calculated at the reporting unit level. The quantitative assessment of goodwill includes comparing a reporting unit’s calculated fair value to its carrying value. The calculation of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth, the useful life over which cash flows will occur 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 recorded to the extent that the fair value of the goodwill within the reporting unit is less than its carrying value. As of July 31, 2014, the Company concluded that the fair value of each reporting unit was substantially in excess of its carrying value and goodwill was not impaired.

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

Value Added Tax Receivables — The Philippine operations are subject to value added tax (“VAT”) which is usually applied to all goods and services purchased throughout The Philippines. Upon validation and certification of the VAT receivables by the Philippine government, the resulting value added tax certificates (“certificates”) can be either used to offset current tax obligations or offered for sale to the Philippine government. The VAT receivables balance is recorded at its net realizable value.

 

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

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

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

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

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

Deferred Revenue The Company receives up-front fees in connection with certain contracts. The deferred revenue is earned over the service periods of the respective contracts, which range from 30 days to seven years. Deferred revenue included in current liabilities in the accompanying Consolidated Balance Sheets includes the up-front fees associated with services to be provided over the next ensuing twelve month period and the up-front fees associated with services to be provided over multiple years in connection with contracts that contain cancellation and refund provisions, whereby the manufacturers or customers can terminate the contracts and demand pro-rata refunds of the up-front fees with short notice. Deferred revenue included in current liabilities in the accompanying Consolidated Balance Sheets also includes estimated penalties and holdbacks for failure to meet specified minimum service levels in certain contracts and other performance based contingencies.

 

Stock-Based Compensation — The Company has three stock-based compensation plans: the 2011 Equity Incentive Plan (for employees and certain non-employees), the 2004 Non-Employee Director Fee Plan (for non-employee directors), both approved by the shareholders, and the Deferred Compensation Plan (for certain eligible employees). All of these plans are discussed more fully in Note 26, Stock-Based Compensation. Stock-based awards under these plans may consist of common stock, stock options, cash-settled or stock-settled stock appreciation rights, restricted stock and other stock-based awards. The Company issues common stock and uses treasury stock to satisfy stock option exercises or vesting of stock awards.

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

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

 

   

Cash, Short-Term and Other Investments, Investments Held in Rabbi Trust and Accounts Payable The carrying values for cash, short-term and other investments, investments held in rabbi trust and accounts payable approximate their fair values.

 

   

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

 

   

Long-Term Debt The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates.

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

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

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

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

 

   

Level 1 Quoted prices for identical instruments in active markets.

 

   

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

 

   

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

 

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

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

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

Money Market and Open-End Mutual Funds The Company uses quoted market prices in active markets to determine the fair value of money market and open-end mutual funds, which are classified in Level 1 of the fair value hierarchy.

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

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 13, Investments Held in Rabbi Trust, and Note 26, Stock-Based Compensation.

Guaranteed Investment Certificates Guaranteed investment certificates, with variable interest rates linked to the prime rate, approximate fair value due to the automatic ability to re-price with changes in the market; such items are classified in Level 2 of the fair value hierarchy.

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

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

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

 

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

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedging activities. This process includes linking all derivatives that are designated as cash flow hedges to forecasted transactions. Hedges of a net investment in a foreign operation are linked to the specific foreign operation. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective on a prospective and retrospective basis. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge or if a forecasted hedge is no longer probable of occurring, or if the Company de-designates a derivative as a hedge, the Company discontinues hedge accounting prospectively. At December 31, 2014 and 2013, all hedges were determined to be highly effective.

The Company also periodically enters into forward contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to reduce the effects from fluctuations caused by volatility in currency exchange rates on the Company’s operating results and cash flows. All changes in the fair value of the derivative instruments are included in “Other income (expense)”. See Note 12, Financial Derivatives, for further information on financial derivative instruments.

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

New Accounting Standards Not Yet Adopted

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (“ASU 2014-08”). The amendments in ASU 2014-08 indicate that only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results will be reported as discontinued operations in the financial statements. Currently, a component of an entity that is a reportable segment, an operating segment, a reporting unit, a subsidiary, or an asset group is eligible for discontinued operations presentation. The amendments should be applied to all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. The adoption of ASU 2014-08 on January 1, 2015 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The amendments in ASU 2014-09 outline a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and indicate that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the impact that the adoption of ASU 2014-09 may have on its financial condition, results of operations and cash flows.

 

In June 2014, the FASB issued ASU 2014-12 “Compensation – Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification Topic 718, “Compensation — Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company does not expect the adoption of ASU 2014-12 to materially impact its financial condition, results of operations and cash flows.

In January 2015, the FASB issued ASU 2015-01 “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20) Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). This amendment eliminates from U.S. GAAP the concept of extraordinary items as part of the FASB’s initiative to reduce complexity in accounting standards. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Company does not expect the adoption of ASU 2015-01 to materially impact its financial condition, results of operations and cash flows.

New Accounting Standards Recently Adopted

In March 2013, the FASB issued ASU 2013-05 “Foreign Currency Matters (Topic 830) – Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity” (“ASU 2013-05”). The amendments in ASU 2013-05 indicate that a cumulative translation adjustment (“CTA”) is attached to the parent’s investment in a foreign entity and should be released in a manner consistent with the derecognition guidance on investments in entities. Thus, the entire amount of the CTA associated with the foreign entity would be released when there has been a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity, a loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated), or a step acquisition for a foreign entity (i.e., when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity). ASU 2013-05 does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. The amendments in ASU 2013-05 are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. The adoption of ASU 2013-05 on January 1, 2014 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In July 2013, the FASB issued ASU 2013-11 “Income Taxes (Topic 740) – Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”). The amendments in ASU 2013-11 indicate that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in ASU 2013-11 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of ASU 2013-11 on January 1, 2014 resulted in a $3.1 million reclassification of a portion of the Company’s unrecognized tax benefits from “Long-term income tax liabilities” to “Deferred charges and other assets.” See Note 22, Income Taxes, for further information.

Acquisition of Alpine Access, Inc.
Acquisition of Alpine Access, Inc.

Note 2. Acquisition of Alpine Access, Inc.

On August 20, 2012, the Company acquired 100% of the outstanding common shares and voting interest of Alpine, pursuant to the terms of the merger agreement. Alpine, an industry leader in the virtual at-home agent space, provides award-winning customer contact management services through a secured and proprietary virtual call center environment with its operations located in the United States and Canada. The results of Alpine’s operations have been included in the Company’s consolidated financial statements since its acquisition on August 20, 2012. The Company acquired Alpine to: create significant competitive differentiation for quality, speed to market, scalability and flexibility driven by proprietary, internally-developed software, systems, processes and other intellectual property, which uniquely overcome the challenges of the virtual at-home agent delivery model; strengthen the Company’s current service portfolio and go-to-market offering while expanding the breadth of clients with minimal client overlap; broaden the addressable market opportunity within existing and new verticals as well as clients; expand the addressable pool of skilled labor; leverage operational best practices across the Company’s global platform, with the potential to convert more of its fixed costs to variable costs; and further enhance the growth and margin profile of the Company to drive shareholder value. This resulted in the Company paying a substantial premium for Alpine resulting in the recognition of goodwill.

The acquisition date fair value of the consideration transferred totaled $149.0 million, which was funded through cash on hand of $41.0 million and borrowings of $108.0 million under the Company’s credit agreement, dated May 3, 2012. See Note 20, Borrowings, for further information.

The Company accounted for the acquisition in accordance with ASC 805 “Business Combinations”, whereby the purchase price paid was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed from Alpine based on their estimated fair values as of the closing date. During the three months ended December 31, 2012, the final working capital adjustment was approved by the authorized representative of Alpine’s shareholders. The Company finalized its purchase price allocation during the three months ended December 31, 2012, resulting in no changes from the estimated acquisition date fair values previously reported.

The following table summarizes the final purchase price allocation of the fair values of the assets acquired and liabilities assumed, all included in the Americas segment (in thousands):

 

     Amount  

Cash and cash equivalents

   $ 1,859   

Receivables

     11,831   

Prepaid expenses

     617   
  

 

 

 

Total current assets

     14,307   

Property and equipment

     11,326   

Goodwill

     80,766   

Intangibles

     57,720   

Deferred charges and other assets

     916   

Accounts payable

     (880

Accrued employee compensation and benefits

     (3,774

Income taxes payable

     (141

Deferred revenue

     (94

Other accrued expenses and current liabilities

     (601
  

 

 

 

Total current liabilities

     (5,490

Other long-term liabilities (1) 

     (10,592
  

 

 

 
   $ 148,953   
  

 

 

 

 

(1) 

Primarily includes long-term deferred tax liabilities.

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

 

The following table presents the Company’s purchased intangibles assets as of August 20, 2012, the acquisition date (in thousands):

 

     Amount
Assigned
     Weighted
Average
Amortization
Period (years)
 

Customer relationships

   $ 46,000         8   

Trade names

     10,600         8   

Non-compete agreements

     670         2   

Favorable lease agreement

     450         2   
  

 

 

    
   $ 57,720         8   
  

 

 

    

The $80.8 million of goodwill was assigned to the Company’s Americas operating segment. Pursuant to Federal income tax regulations, no amount of intangibles or goodwill from this acquisition will be deductible for tax purposes.

The fair value of receivables purchased was $11.8 million, with the gross contractual amount of $11.8 million.

The amount of Alpine’s revenues and net loss since the August 20, 2012 acquisition date, included in the Company’s accompanying Consolidated Statement of Operations for the year ended December 31, 2012 was as follows (in thousands):

 

     From
August 20,
2012 Through
December 31,
2012
 

Revenues

   $ 40,635   

(Loss) from continuing operations before income taxes

   $ (3,201

(Loss) from continuing operations, net of taxes

   $ (2,166

The loss from continuing operations before income taxes of $3.2 million includes $3.6 million in severance costs, depreciation resulting from the adjustment to fair value of the acquired property and equipment, and amortization of the fair values of the acquired intangibles.

The following table presents the unaudited pro forma combined revenues and net earnings as if Alpine had been included in the consolidated results of the Company for the entire year for the year ended December 31, 2012. The pro forma financial information is not indicative of the results of operations that would have been achieved if the acquisition and related borrowings had taken place on January 1, 2012 (in thousands):

 

     Year Ended
December 31, 2012
 

Revenues

   $ 1,190,150   

Income from continuing operations, net of taxes

   $ 37,352   

Income from continuing operations per common share:

  

Basic

   $ 0.87   

Diluted

   $ 0.87   

These amounts have been calculated to reflect the additional depreciation, amortization and interest expense that would have been incurred assuming the fair value adjustments and borrowings occurred on January 1, 2012, together with the consequential tax effects. In addition, these amounts exclude costs incurred which are directly attributable to the acquisition, and which do not have a continuing impact on the combined companies’ operating results. Included in these costs are severance, advisory and legal costs, net of the tax effects.

 

Merger and integration costs associated with Alpine were as follows (none in 2014) (in thousands):

 

     Years Ended December 31,  
     2013      2012  

Severance costs included in “Direct salaries and related costs”: (1)

     

Americas

   $ 526       $ —     
  

 

 

    

 

 

 
     526         —     

Severance costs included in “General and administrative”: (1)

     

Americas

     985         591   

Corporate

     159         377   
  

 

 

    

 

 

 
     1,144         968   

Transaction and integration costs included in “General and administrative”: (1)

     

Corporate

     444         3,793   
  

 

 

    

 

 

 
     444         3,793   
  

 

 

    

 

 

 

Total merger and integration costs

   $ 2,114       $ 4,761   
  

 

 

    

 

 

 

 

(1)

In the accompanying Consolidated Statements of Operations.

Discontinued Operations
Discontinued Operations

Note 3. Discontinued Operations

In November 2011, the Finance Committee of the Board of Directors (the “Board”) of the Company approved a plan to sell its Spanish operations, which were operated through its Spanish subsidiary, Sykes Enterprises, Incorporated S.L. (“Sykes Spain”). Sykes Spain operated customer contact management centers, providing contact center services through a total of three customer contact management centers in Spain to clients in Spain. The decision to sell the Spanish operations was made in 2011 after management completed a strategic review of the Spanish market and determined the operations were no longer consistent with the Company’s strategic direction.

On March 29, 2012, Sykes Spain entered into the asset purchase agreement, by and between Sykes Spain and Iberphone, S.A.U., and pursuant thereto, on March 29, 2012, Sykes Spain sold the fixed assets located in Ponferrada, Spain, which were previously written down to zero, cash of $4.1 million, and certain contracts and licenses relating to the business of Sykes Spain, to Iberphone, S.A.U. Under the asset purchase agreement, Ponferrada, Spain employees were transferred to Iberphone S.A.U. which assumed certain payroll liabilities in the approximate amount of $1.7 million, and paid a nominal purchase price for the assets.

On March 30, 2012, the Company entered into a stock purchase agreement with a former member of Sykes Spain’s management, and pursuant thereto, on March 30, 2012, the Company sold all of the shares of capital stock of Sykes Spain to the purchaser for a nominal price. Pursuant to the stock purchase agreement, immediately prior to closing, the Company made a cash capital contribution of $8.6 million to Sykes Spain to cover a portion of Sykes Spain’s liabilities and to fund the $4.1 million of cash transferred and sold pursuant to the asset purchase agreement with Iberphone, S.A.U. discussed above. As this was a stock transaction, the Company anticipates no future obligation with regard to Sykes Spain and there were no material post-closing obligations.

The Company reflected the operating results related to the Spanish operations as discontinued operations in the accompanying Consolidated Statement of Operations for the year ended December 31, 2012. Cash flows from discontinued operations are included in the accompanying Consolidated Statement of Cash Flows for the year ended December 31, 2012. This business was historically reported by the Company as part of the EMEA segment.

The results of discontinued operations were as follows (none in 2014 and 2013) (in thousands):

 

     Year Ended  
     December 31, 2012  

Revenues

   $ 10,102   
  

 

 

 

(Loss) from discontinued operations before income taxes

   $ (820

Income taxes (1)

     —     
  

 

 

 

(Loss) from discontinued operations, net of taxes

   $ (820
  

 

 

 

(Loss) on sale of discontinued operations before income taxes

   $ (10,707

Income taxes (1)

     —     
  

 

 

 

(Loss) on sale of discontinued operations, net of taxes

   $ (10,707
  

 

 

 

 

(1) 

There were no income taxes as any tax benefit from the losses would be offset by a valuation allowance.

Costs Associated with Exit or Disposal Activities
Costs Associated with Exit or Disposal Activities

Note 4. Costs Associated with Exit or Disposal Activities

During 2011 and 2010, the Company announced several initiatives to streamline excess capacity through targeted seat reductions (the “Exit Plans”) in an on-going effort to manage and optimize capacity utilization. These Exit Plans included, but were not limited to, closing customer contact management centers in The Philippines, the United Kingdom, Ireland and South Africa and consolidating leased space in various locations in the U.S. and the Netherlands. These Exit Plans impacted approximately 800 employees. The Company has paid $14.5 million in cash through December 31, 2014 under these Exit Plans.

The cumulative costs expected and incurred as a result of the Exit Plans were as follows as of December 31, 2014 (in thousands):

 

     Americas
Fourth
Quarter 2011
Exit Plan
     EMEA
Fourth
Quarter 2011
Exit Plan
     EMEA
Fourth
Quarter 2010
Exit Plan
     Americas
Third
Quarter 2010
Exit Plan
     Total  

Lease obligations and facility exit costs

   $ 1,365       $ 19       $ 1,914       $ 6,729       $ 10,027   

Severance and related costs

     —           5,857         185         —           6,042   

Legal-related costs

     —           110         —           —           110   

Non-cash impairment charges

     480         474         159         3,847         4,960   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,845       $ 6,460       $ 2,258       $ 10,576       $ 21,139   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Restructuring charges in the Company’s Consolidated Statements of Operations are summarized as follows (in thousands):

 

     Years Ended December 31,  
     2014     2013     2012  

By Type:

      

Lease obligations and facility exit costs

   $ (185   $ 318      $ 858   

Severance and related costs

     (129     (56     857   

Legal-related costs

     —          —          89   
  

 

 

   

 

 

   

 

 

 

Total

   $ (314   $ 262      $ 1,804   
  

 

 

   

 

 

   

 

 

 
     Years Ended December 31,  
     2014     2013     2012  

By Statements of Operations Caption:

      

Direct salaries and related costs

   $ —        $ —        $ 715   

General and administrative

     (314     262        1,089   
  

 

 

   

 

 

   

 

 

 

Total

   $ (314   $ 262      $ 1,804   
  

 

 

   

 

 

   

 

 

 
     Years Ended December 31,  
     2014     2013     2012  

By Segment:

      

Americas

   $ —        $ —        $ 1,426   

EMEA

     (314     262        378   
  

 

 

   

 

 

   

 

 

 

Total

   $ (314   $ 262      $ 1,804   
  

 

 

   

 

 

   

 

 

 

The following table summarizes the accrued liability associated with the Exit Plans’ exit or disposal activities and related charges for the years ended December 31, 2014, 2013 and 2012 (in thousands):

 

     Lease Obligation
and Facility Exit
Costs
    Severance and
Related Costs
    Legal-Related
Costs
    Total  

Balance at January 1, 2012

   $ 4,839      $ 4,470      $ 13      $ 9,322   

Charges (reversals) (1) 

     858        857        89        1,804   

Cash payments

     (1,926     (5,134     (91     (7,151

Other non-cash changes (4)

     1        (6     (1     (6
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2012

     3,772        187        10        3,969   

Charges (reversals) (2) 

     318        (56     —          262   

Cash payments

     (1,264     (8     (10     (1,282

Other non-cash changes (4)

     17        8        —          25   
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2013

     2,843        131        —          2,974   

Charges (reversals) (3) 

     (185     (129     —          (314

Cash payments

     (1,095     —          —          (1,095

Other non-cash changes (4)

     (5     (2     —          (7
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2014

   $ 1,558      $ —        $ —        $ 1,558   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

During 2012, the Company recorded lease obligations and facility exit costs due to the initiation of one of the Exit Plans, recorded additional severance and related costs and legal-related costs due to a change in estimates and recorded additional lease obligations due to an unanticipated lease termination penalty, all of which were included in “General and administrative” costs in the accompanying Consolidated Statement of Operations. Also, during 2012, the Company reversed accruals related to the final settlement of lease obligations and facility exit costs for one of the Ireland sites, which reduced “General and administrative” costs in the accompanying Consolidated Statement of Operations.

 

(2)

During 2013, the Company recorded additional lease obligations and facility exit costs for one of the Ireland site’s lease restoration. Also during 2013, the Company reversed accruals related to the final settlement of severance and related costs for the Netherlands site, which reduced “General and administrative” costs in the accompanying Consolidated Statement of Operations.

 

(3)

During 2014, the Company reversed accruals related to the final settlement of lease obligations and facility exit costs as well as severance and related costs for the Ireland sites, which reduced “General and administrative” costs in the accompanying Consolidated Statement of Operations.

 

(4)

Effect of foreign currency translation.

The charges (reversals) for the lease obligations and facility exit costs of $0.9 million for the year ended December 31, 2012 is net of a reversal of $0.6 million as described in (1) to the table above.

 

Restructuring Liability Classification

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with its exit and disposal activities, by plan, as of December 31, 2014 and 2013 (in thousands):

 

    Americas
Fourth
Quarter 2011
Exit Plan
    EMEA
Fourth
Quarter 2011
Exit Plan
    EMEA
Fourth
Quarter 2010
Exit Plan
    Americas
Third
Quarter
2010 Exit
Plan
    Total  

December 31, 2014

         

Short-term accrued restructuring liability (1)

  $ 109      $ —        $ —        $ 521      $ 630   

Long-term accrued restructuring liability (2)

    203        —          —          725        928   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending accrual at December 31, 2014

  $ 312      $ —        $ —        $ 1,246      $ 1,558   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

December 31, 2013

         

Short-term accrued restructuring liability (1)

  $ 136      $ 131      $ 538      $ 440      $ 1,245   

Long-term accrued restructuring liability (2)

    376        —          —          1,353        1,729   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending accrual at December 31, 2013

  $ 512      $ 131      $ 538      $ 1,793      $ 2,974   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

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

 

(2) 

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

The remaining restructuring liability relates to future rent obligations to be paid through the remainder of the lease terms, the last of which ends in February 2017.

Fair Value
Fair Value

Note 5. Fair Value

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

 

          Fair Value Measurements at December 31, 2014 Using:  
    Balance at     Quoted Prices
in  Active
Markets For
Identical Assets
    Significant
Other
Observable
Inputs
    Significant
Unobservable
Inputs
 
    December 31, 2014     Level (1)     Level (2)     Level (3)  

Assets:

       

Money market funds and open-end mutual funds included in “Cash and cash equivalents” (1)

  $ 100,915      $ 100,915      $ —        $ —     

Money market funds and open-end mutual funds included in “Deferred charges and other assets” (1)

    10        10        —          —     

Foreign currency forward and option contracts included in “Other current assets” (2)

    1,489        —          1,489        —     

Foreign currency forward contracts included in “Deferred charges and other assets” (2)

    4,060        —          4,060        —     

Equity investments held in a rabbi trust for the Deferred Compensation Plan (3)

    5,589        5,589        —          —     

Debt investments held in a rabbi trust for the Deferred Compensation Plan (3)

    1,363        1,363        —          —     

Guaranteed investment certificates (4)

    79        —          79        —     
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 113,505      $ 107,877      $ 5,628      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities:

       

Long-term debt (5)

  $ 75,000      $ —        $ 75,000      $ —     

Foreign currency forward and option contracts included in “Other accrued expenses and current liabilities” (2)

    1,261        —          1,261        —     
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 76,261      $ —        $ 76,261      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

 

 

          Fair Value Measurements at December 31, 2013 Using:  
    Balance at     Quoted Prices
in  Active
Markets For
Identical Assets
    Significant
Other
Observable
Inputs
    Significant
Unobservable
Inputs
 
    December 31, 2013     Level (1)     Level (2)     Level (3)  

Assets:

       

Money market funds and open-end mutual funds included in “Cash and cash equivalents” (1)

  $ 50,627      $ 50,627      $ —        $ —     

Money market funds and open-end mutual funds included in “Deferred charges and other assets” (1)

    11        11        —          —     

Foreign currency forward and option contracts included in “Other current assets” (2)

    2,240        —          2,240        —     

Equity investments held in a rabbi trust for the Deferred Compensation Plan (3)

    5,251        5,251        —          —     

Debt investments held in a rabbi trust for the Deferred Compensation Plan (3)

    1,170        1,170        —          —     

Guaranteed investment certificates (4)

    80        —          80        —     
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 59,379      $ 57,059      $ 2,320      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities:

       

Long-term debt (5)

  $ 98,000      $ —        $ 98,000      $ —     

Foreign currency forward and option contracts included in “Other accrued expenses and current liabilities” (2)

    5,063        —          5,063        —     
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 103,063      $ —        $ 103,063      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

In the accompanying Consolidated Balance Sheet.

 

(2) 

In the accompanying Consolidated Balance Sheet. See Note 12, Financial Derivatives.

 

(3) 

Included in “Other current assets” in the accompanying Consolidated Balance Sheet. See Note 13, Investments Held in Rabbi Trust.

 

(4) 

Included in “Deferred charges and other assets” in the accompanying Consolidated Balance Sheet.

 

(5) 

The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 20, Borrowings.

 

 

Certain assets, under certain conditions, are measured at fair value on a nonrecurring basis utilizing Level 3 inputs as described in Note 1, Overview and Summary of Significant Accounting Policies, like those associated with acquired businesses, including goodwill, other intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if these assets were determined to be impaired. The adjusted carrying values for assets measured at fair value on a nonrecurring basis (no liabilities) subject to the requirements of ASC 820 were not material at December 31, 2014 and 2013.

The table below summarizes impairment losses resulting from nonrecurring fair value measurements of certain assets (no liabilities), primarily long-lived assets that the Company determined were no longer being used and were disposed of, as follows (in thousands):

 

      Total Impairment (Loss)  
     Years Ended December 31,  
     2014     2013      2012  

Americas:

       

Property and equipment, net (1)

   $ (89   $  —         $ (355

EMEA:

       

Property and equipment, net (1)

     —          —           —     
  

 

 

   

 

 

    

 

 

 
   $ (89   $ —         $ (355
  

 

 

   

 

 

    

 

 

 

 

(1)

See Note 1, Overview and Summary of Significant Accounting Policies, for additional information regarding the fair value measurement as outlined in Property and Equipment.

Goodwill and Intangible Assets
Goodwill and Intangible Assets

Note 6. Goodwill and Intangible Assets

The following table presents the Company’s purchased intangible assets as of December 31, 2014 (in thousands):

 

     Gross Intangibles      Accumulated
Amortization
    Net Intangibles      Weighted  Average
Amortization
Period (years)
 

Customer relationships

   $ 100,719       $ (47,571   $ 53,148         8   

Trade name

     11,600         (4,128     7,472         8   

Non-compete agreements

     1,209         (1,209     —           2   

Proprietary software

     850         (850     —           2   

Favorable lease agreement

     449         (449     —           2   
  

 

 

    

 

 

   

 

 

    
   $ 114,827       $ (54,207   $ 60,620         8   
  

 

 

    

 

 

   

 

 

    

The following table presents the Company’s purchased intangible assets as of December 31, 2013 (in thousands):

 

     Gross Intangibles      Accumulated
Amortization
    Net Intangibles      Weighted  Average
Amortization
Period (years)
 

Customer relationships

   $ 102,774       $ (35,873   $ 66,901         8   

Trade name

     11,600         (2,803     8,797         8   

Non-compete agreements

     1,220         (1,009     211         2   

Proprietary software

     850         (847     3         2   

Favorable lease agreement

     449         (306     143         2   
  

 

 

    

 

 

   

 

 

    
   $ 116,893       $ (40,838   $ 76,055         8   
  

 

 

    

 

 

   

 

 

    

 

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to December 31, 2014, is as follows (in thousands):

 

Years Ending December 31,

   Amount  

2015

     13,884   

2016

     13,884   

2017

     13,884   

2018

     7,565   

2019

     6,961   

2020 and thereafter

     4,442   

Changes in goodwill for the year ended December 31, 2014 consist of the following (in thousands):

 

     January 1, 2014      Acquisitions      Impairments      Effect of Foreign
Currency
    December 31,
2014
 

Americas

   $ 199,802       $ —         $ —         $ (5,971   $ 193,831   

EMEA

     —           —           —           —          —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
   $ 199,802       $ —         $ —         $ (5,971   $ 193,831   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Changes in goodwill for the year ended December 31, 2013 consist of the following (in thousands):

 

     January 1, 2013      Acquisitions      Impairments      Effect of Foreign
Currency
    December 31,
2013
 

Americas

   $ 204,231       $ —         $ —         $ (4,429   $ 199,802   

EMEA

     —           —           —           —          —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
   $ 204,231       $ —         $ —         $ (4,429   $ 199,802   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Concentrations of Credit Risk
Concentrations of Credit Risk

Note 7. Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade receivables. The Company’s credit concentrations are limited due to the wide variety of customers and markets in which the Company’s services are sold. See Note 12, Financial Derivatives, for a discussion of the Company’s credit risk relating to financial derivative instruments, and Note 27, Segments and Geographic Information, for a discussion of the Company’s customer concentration.

Receivables, Net
Receivables, Net

Note 8. Receivables, Net

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

 

     December 31,  
     2014     2013  

Trade accounts receivable

   $  290,711      $ 266,048   

Income taxes receivable

     993        1,377   

Other

     3,354        2,478   
  

 

 

   

 

 

 
     295,058        269,903   

Less: Allowance for doubtful accounts

     4,661        4,987   
  

 

 

   

 

 

 
   $ 290,397      $ 264,916   
  

 

 

   

 

 

 

Allowance for doubtful accounts as a percent of trade receivables

     1.6     1.9
  

 

 

   

 

 

 
Prepaid Expenses
Prepaid Expenses

Note 9. Prepaid Expenses

Prepaid expenses consist of the following (in thousands):

 

     December 31,  
     2014      2013  

Prepaid maintenance

   $ 5,315       $ 5,852   

Prepaid rent

     3,147         3,009   

Prepaid insurance

     3,112         2,631   

Prepaid other

     3,322         4,218   
  

 

 

    

 

 

 
   $ 14,896       $ 15,710   
  

 

 

    

 

 

 
Other Current Assets
Other Current Assets

Note 10. Other Current Assets

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

 

     December 31,  
     2014      2013  

Deferred tax assets (Note 22)

   $ 13,703       $ 7,961   

Financial derivatives (Note 12)

     1,489         2,240   

Investments held in rabbi trust (Note 13)

     6,952         6,421   

Value added tax certificates (Note 11)

     6,303         2,066   

Other current assets

     1,209         1,984   
  

 

 

    

 

 

 
   $ 29,656       $ 20,672   
  

 

 

    

 

 

 
Value Added Tax Receivables
Value Added Tax Receivables

Note 11. Value Added Tax Receivables

The VAT receivables balances, and the respective locations in the accompanying Consolidated Balance Sheets, are presented below (in thousands):

 

     December 31,  
     2014      2013  

VAT included in:

     

Other current assets (Note 10)

   $ 6,303       $ 2,066   

Deferred charges and other assets (Note 15)

     856         5,406   
  

 

 

    

 

 

 
   $ 7,159       $ 7,472   
  

 

 

    

 

 

 

During the years ended December 31, 2014, 2013 and 2012, the Company wrote down the VAT receivables balances by the following amounts, which are reflected in the accompanying Consolidated Statements of Operations (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Write-downs (recoveries) of value added tax receivables

   $ (638 )     $ 143       $ 546   
  

 

 

    

 

 

    

 

 

 
Financial Derivatives
Financial Derivatives

Note 12. Financial Derivatives

Cash Flow Hedges — The Company has derivative assets and liabilities relating to outstanding forward contracts and options, designated as cash flow hedges, as defined under ASC 815 “Derivatives and Hedging” (“ASC 815”), consisting of Philippine Peso, Costa Rican Colon, Hungarian Forint and Romanian Leu contracts. These contracts are entered into to protect against the risk that the eventual cash flows resulting from such transactions will be adversely affected by 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)” in the accompanying Consolidated Balance Sheets are as follows (in thousands):

 

      December 31,  
     2014     2013  

Deferred gains (losses) in AOCI

   $ (157   $ (2,704

Tax on deferred gains (losses) in AOCI

     46        169   
  

 

 

   

 

 

 

Deferred gains (losses) in AOCI, net of taxes

   $ (111   $ (2,535
  

 

 

   

 

 

 

Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months

   $ (157  
  

 

 

   

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

Net Investment Hedge — During 2014 and 2013, the Company entered into foreign exchange forward contracts to hedge its net investment in a foreign operation, as defined under ASC 815. The Company did not hedge net investments in foreign operations during 2012. The purpose of these derivative instruments is to protect the Company’s interests against the risk that the net assets of certain foreign subsidiaries will be adversely affected by changes in exchange rates and economic exposures related to the Company’s foreign currency-based investments in these subsidiaries.

Non-Designated Hedges — 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 pertaining to intercompany receivables and payables, and other assets and liabilities that are denominated in currencies other than the Company’s subsidiaries’ functional currencies. These contracts generally do not exceed 180 days in duration.

 

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

 

     As of December 31, 2014      As of December 31, 2013  

Contract Type

   Notional
Amount in
USD
     Settle Through
Date
     Notional
Amount in
USD
     Settle Through
Date
 

Cash flow hedges: (1)

           

Options:

           

Philippine Pesos

   $ 73,000         December 2015       $ 59,000         December 2014   

Forwards:

           

Philippine Pesos

     9,000         March 2015         63,300         July 2014   

Costa Rican Colones

     51,600         October 2015         41,600         October 2014   

Hungarian Forints

     —          
—  
  
     550         January 2014   

Romanian Leis

     10,414         December 2015         619         January 2014   

Net investment hedges: (2)

           

Forwards:

           

Euros

     51,648         March 2016         32,657         September 2014   

Non-designated hedges: (3)

           

Forwards

     64,541         March 2015         59,207         June 2014   

 

(1) 

Cash flow hedge as defined under ASC 815. Purpose is to protect against the risk that eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates.

 

(2) 

Net investment hedge as defined under ASC 815. Purpose is to protect against the risk that the net assets of certain of our international subsidiaries will be adversely affected by changes in exchange rates and economic exposures related to our foreign currency-based investments in these subsidiaries.

 

(3) 

Foreign currency hedge contract not designated as a hedge as defined under ASC 815. Purpose is to reduce the effects on the Company’s operating results and cash flows from fluctuations caused by volatility in currency exchange rates, primarily related to intercompany loan payments and cash held in non-functional currencies. See Note 1, Overview and Summary of Significant Accounting Policies, for additional information on the Company’s purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies.

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 $5.5 million and $2.2 million as of December 31, 2014 and 2013, 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 $4.4 million and $0.4 million, and liability positions of $0.1 million and $3.3 million as of December 31, 2014 and 2013, respectively.

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

 

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

 

    Derivative Assets  
    December 31, 2014     December 31, 2013  
    Fair Value     Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

   

Foreign currency forward and option contracts (1) 

  $ 974      $ 862   

Derivatives designated as net investment hedging instruments under ASC 815:

   

Foreign currency forward contracts (2)

    4,060        —     
 

 

 

   

 

 

 
    5,034        862   

Derivatives not designated as hedging instruments under ASC 815:

   

Foreign currency forward contracts (1)

    515        1,378   
 

 

 

   

 

 

 

Total derivative assets

  $ 5,549      $ 2,240   
 

 

 

   

 

 

 

 

    Derivative Liabilities  
    December 31, 2014     December 31, 2013  
    Fair Value     Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

   

Foreign currency forward and option contracts (3) 

  $ 406      $ 2,997   

Derivatives designated as net investment hedging instruments under ASC 815:

   

Foreign currency forward contracts (3)

    —          1,720   
 

 

 

   

 

 

 
    406        4,717   

Derivatives not designated as hedging instruments under ASC 815:

   

Foreign currency forward contracts (3)

    855        346   
 

 

 

   

 

 

 

Total derivative liabilities

  $ 1,261      $ 5,063   
 

 

 

   

 

 

 

 

(1)

Included in “Other current assets” in the accompanying Consolidated Balance Sheets.

 

(2)

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

 

(3)

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

 

The following tables present the effect of the Company’s derivative instruments included in the accompanying Consolidated Financial Statements for the years ended December 31, 2014, 2013 and 2012 (in thousands):

 

    Gain (Loss)
Recognized  in AOCI
on Derivatives
(Effective Portion)
    Gain (Loss)
Reclassified  From Accumulated
AOCI Into “Revenues”

(Effective Portion)
    Gain (Loss)
Recognized  in “Revenues”
on Derivatives
(Ineffective Portion)
 
    December 31,     December 31,     December 31,  
    2014     2013     2012     2014     2013     2012     2014     2013     2012  

Derivatives designated as cash flow hedging instruments under ASC 815:

                 

Foreign currency forward and option contracts

  $ (2,787   $ (2,823   $ 4,400      $ (5,339   $ (666   $ 4,156      $ (3   $ 119      $ 17   

Derivatives designated as net investment hedging instruments under ASC 815:

                 

Foreign currency forward contracts

    6,344        (1,720     —          —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Foreign currency forward and option contracts

  $ 3,557      $ (4,543   $ 4,400      $ (5,339 )    $ (666   $ 4,156      $ (3 )    $ 119      $ 17   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Gain (Loss) Recognized in
“Other income and (expense)”
on Derivatives
 
     December 31,  
     2014     2013      2012  

Derivatives not designated as hedging instruments under ASC 815:

       

Foreign currency forward contracts

   $ (44 )    $ 4,216       $ (295
  

 

 

   

 

 

    

 

 

 

Investments Held in Rabbi Trust
Investments Held in Rabbi Trust

Note 13. Investments Held in Rabbi Trust

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

 

     December 31, 2014      December 31, 2013  
     Cost      Fair Value      Cost      Fair Value  

Mutual funds

   $ 5,160       $ 6,952       $ 4,749       $ 6,421   
  

 

 

    

 

 

    

 

 

    

 

 

 

The mutual funds held in the rabbi trust were 80% equity-based and 20% debt-based as of December 31, 2014. Net investment income (losses), included in “Other income (expense)” in the accompanying Consolidated Statements of Operations consists of the following (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Gross realized gains from sale of trading securities

   $ 586       $ 160       $ 163   

Gross realized (losses) from sale of trading securities

     —           (10      (1

Dividend and interest income

     58         279         129   

Net unrealized holding gains (losses)

     (276      568         312   
  

 

 

    

 

 

    

 

 

 

Net investment income (losses)

   $ 368       $ 997       $ 603   
  

 

 

    

 

 

    

 

 

 
Property and Equipment
Property and Equipment

Note 14. Property and Equipment

Property and equipment consist of the following (in thousands):

 

     December 31,  
     2014      2013  

Land

   $ 3,600       $ 4,144   

Buildings and leasehold improvements

     94,786         92,652   

Equipment, furniture and fixtures

     293,857         287,728   

Capitalized internally developed software costs

     7,963         7,752   

Transportation equipment

     531         624   

Construction in progress

     8,071         1,909   
  

 

 

    

 

 

 
     408,808         394,809   

Less: Accumulated depreciation

     298,928         277,260   
  

 

 

    

 

 

 
   $ 109,880       $ 117,549   
  

 

 

    

 

 

 

Capitalized internally developed software, net of depreciation, included in “Property and equipment, net” in the accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013 was as follows (in thousands):

 

     December 31,  
     2014      2013  

Capitalized internally developed software costs, net

   $   1,270       $   2,599   
  

 

 

    

 

 

 

Sale of Fixed Assets, Land and Building Located in Bismarck, North Dakota

In November 2014, the Company sold the fixed assets, land and building located in Bismarck, North Dakota for cash of $3.1 million (net of selling costs of $0.2 million) resulting in a net gain on disposal of property and equipment of $2.6 million, which is included in “Net gain (loss) on disposal of property and equipment” in the accompanying Consolidated Statement of Operations for the year ended December 31, 2014. These assets, with a carrying value of $0.9 million, were included in “Property and equipment” in the accompanying Consolidated Balance Sheet as of December 31, 2013. Related to these assets were deferred property grants of $0.4 million, which were included in “Deferred grants” in the accompanying Consolidated Balance Sheet as of December 31, 2013.

Deferred Charges and Other Assets
Deferred Charges and Other Assets

Note 15. Deferred Charges and Other Assets

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

 

     December 31,  
     2014      2013  

Non-current deferred tax assets (Note 22)

   $ 1,681       $ 13,048   

Non-current mandatory tax security deposits (Note 22)

     15,906         17,317   

Non-current value added tax certificates (Note 11)

     856         5,406   

Foreign currency forward contracts (Note 12)

     4,060         —     

Rent and other deposits

     3,215         3,169   

Other

     4,365         4,632   
  

 

 

    

 

 

 
   $ 30,083       $ 43,572   
  

 

 

    

 

 

 
Accrued Employee Compensation and Benefits
Accrued Employee Compensation and Benefits

Note 16. Accrued Employee Compensation and Benefits

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

 

     December 31,  
     2014      2013  

Accrued compensation

   $ 32,786       $ 32,003   

Accrued bonus and commissions

     18,590         14,265   

Accrued vacation

     16,613         17,055   

Accrued employment taxes

     9,362         12,448   

Other

     4,721         5,293   
  

 

 

    

 

 

 
   $ 82,072       $ 81,064   
  

 

 

    

 

 

 

Deferred Revenue
Deferred Revenue

Note 17. Deferred Revenue

The components of deferred revenue consist of the following (in thousands):

 

     December 31,  
     2014      2013  

Future service

   $ 25,222       $ 25,102   

Estimated potential penalties and holdbacks

     9,023         9,923   
  

 

 

    

 

 

 
   $ 34,245       $ 35,025   
  

 

 

    

 

 

 

Other Accrued Expenses and Current Liabilities
Other Accrued Expenses and Current Liabilities

Note 18. Other Accrued Expenses and Current Liabilities

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

 

     December 31,  
     2014      2013  

Accrued legal and professional fees

   $ 4,508       $ 3,220   

Accrued equipment and software

     2,196         1,779   

Accrued roadside assistance claim costs

     1,878         2,341   

Accrued utilities

     1,329         1,425   

Foreign currency forward and option contracts (Note 12)

     1,261         5,063   

Accrued telephone charges

     1,068         1,475   

Customer deposits

     793         2,418   

Accrued rent

     640         2,057   

Accrued restructuring (Note 4)

     630         1,245   

Other

     7,913         9,370   
  

 

 

    

 

 

 
   $ 22,216       $ 30,393   
  

 

 

    

 

 

 
Deferred Grants
Deferred Grants

Note 19. Deferred Grants

The components of deferred grants consist of the following (in thousands):

 

     December 31,  
     2014     2013  

Property grants

   $ 5,110      $ 6,643   

Employment grants

     207        146   
  

 

 

   

 

 

 

Total deferred grants

     5,317        6,789   

Less: Property grants — short-term (1)

     —          (6

Less: Employment grants — short-term (1)

     (207     (146
  

 

 

   

 

 

 

Total long-term deferred grants (2)

   $ 5,110      $ 6,637   
  

 

 

   

 

 

 

 

(1) 

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

 

(2) 

Included in “Deferred grants” in the accompanying Consolidated Balance Sheets.

Borrowings
Borrowings

Note 20. Borrowings

On May 3, 2012, the Company entered into a $245 million revolving credit facility (the “2012 Credit Agreement”) with a group of lenders and KeyBank National Association, as Lead Arranger, Sole Book Runner and Administrative Agent (“KeyBank”). The 2012 Credit Agreement replaced the Company’s previous $75 million revolving credit facility dated February 2, 2010, as amended, which agreement was terminated simultaneous with entering into the 2012 Credit Agreement. The 2012 Credit Agreement is subject to certain borrowing limitations and includes certain customary financial and restrictive covenants.

The 2012 Credit Agreement includes a $184 million alternate-currency sub-facility, a $10 million swingline sub-facility and a $35 million letter of credit sub-facility, and may be used for general corporate purposes including acquisitions, share repurchases, working capital support and letters of credit, subject to certain limitations. The Company is not currently aware of any inability of its lenders to provide access to the full commitment of funds that exist under the revolving credit facility, if necessary. However, there can be no assurance that such facility will be available to the Company, even though it is a binding commitment of the financial institutions.

Borrowings consist of the following (in thousands):

 

     December 31,  
     2014      2013  

Revolving credit facility

   $ 75,000       $ 98,000   

Less: Current portion

     —           —     
  

 

 

    

 

 

 

Total long-term debt

   $ 75,000       $ 98,000   
  

 

 

    

 

 

 

The 2012 Credit Agreement matures on May 2, 2017 and has no varying installments due.

Borrowings under the 2012 Credit Agreement will bear interest at the rates set forth in the Credit Agreement. In addition, the Company is required to pay certain customary fees, including a commitment fee of 0.175%, which is due quarterly in arrears and calculated on the average unused amount of the 2012 Credit Agreement.

The 2012 Credit Agreement is guaranteed by all of the Company’s existing and future direct and indirect material U.S. subsidiaries and secured by a pledge of 100% of the non-voting and 65% of the voting capital stock of all the direct foreign subsidiaries of the Company and those of the guarantors.

In May 2012, the Company paid an underwriting fee of $0.9 million for the 2012 Credit Agreement, which is deferred and amortized over the term of the loan. The 2012 Credit Agreement had an average daily utilization of $85.9 million and $102.5 million during the years ended December 31, 2014 and 2013, respectively, and $96.8 million for the period outstanding during the year ended December 31, 2012. During the years ended December 31, 2014, 2013 and 2012, the related interest expense, excluding amortization of deferred loan fees, under our credit agreements was $1.1 million, $1.5 million and $0.5 million, respectively, which represented weighted average interest rates of 1.3%, 1.5% and 1.5%, respectively.

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)

Note 21. Accumulated Other Comprehensive Income (Loss)

The Company presents data in the Consolidated Statements of Changes in Shareholders’ Equity in accordance with ASC 220 “Comprehensive Income” (“ASC 220”). ASC 220 establishes rules for the reporting of comprehensive income (loss) and its components. The components of accumulated other comprehensive income (loss) consist of the following (in thousands):

 

     Foreign
Currency
Translation
Gain (Loss)
    Unrealized Gain
(Loss) on  Net
Investment
Hedges
    Unrealized
Actuarial  Gain
(Loss) Related
to Pension
Liability
    Unrealized
Gain (Loss)  on
Cash Flow
Hedging
Instruments
    Unrealized
Gain (Loss)  on
Post
Retirement
Obligation
    Total  

Balance at January 1, 2012

   $ 5,995      $ (2,565   $ 985      $ (438   $ 459      $ 4,436   

Pre-tax amount

     9,516        —          499        4,417        92        14,524   

Tax (provision) benefit

     —          —          (90     (306     —          (396

Reclassification of (gain) loss to net income

     570        —          (48     (4,174     (56     (3,708

Foreign currency translation

     2        —          67        (69     —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2012

     16,083        (2,565     1,413        (570     495        14,856   

Pre-tax amount

     (3,465     (1,720     (136     (2,704     (127     (8,152

Tax (provision) benefit

     —          602        16        449        —          1,067   

Reclassification of (gain) loss to net income

     —          —          (41     321        (54     226   

Foreign currency translation

     133        —          (102     (31     —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2013

     12,751        (3,683     1,150        (2,535     314        7,997   

Pre-tax amount

     (34,947     6,344        (50     (2,790     77        (31,366

Tax (provision) benefit

     —          (2,385     57        (17     —          (2,345

Reclassification of (gain) loss to net income

     —          —          (35     5,237        (49     5,153   

Foreign currency translation

     120        —          (114     (6     —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2014

   $ (22,076   $ 276      $ 1,008      $ (111   $ 342      $ (20,561
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

 

     Years Ended December 31,    

Statements of Operations Location

     2014     2013      

Actuarial Gain (Loss) Related to Pension Liability: (1)

      

Pre-tax amount

   $ 50      $ 60      Direct salaries and related costs

Tax (provision) benefit

     (15     (19   Income taxes
  

 

 

   

 

 

   

Reclassification to net income

     35        41     

Gain (Loss) on Cash Flow Hedging Instruments: (2)

      

Pre-tax amount

     (5,342     (547   Revenues

Tax (provision) benefit

     105        226      Income taxes
  

 

 

   

 

 

   

Reclassification to net income

     (5,237     (321  

Gain (Loss) on Post Retirement Obligation: (1)

      

Pre-tax amount

     49        54      General and administrative

Tax (provision) benefit

     —          —        Income taxes
  

 

 

   

 

 

   

Reclassification to net income

     49        54     
  

 

 

   

 

 

   

Total reclassification of gain (loss) to net income

   $ (5,153 )    $ (226  
  

 

 

   

 

 

   

 

(1) 

See Note 25, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

 

(2)

See Note 12, Financial Derivatives, for further information.

 

Except as discussed in Note 22, Income Taxes, earnings 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 have been provided.

Income Taxes
Income Taxes

Note 22. Income Taxes

The income from continuing operations before income taxes includes the following components (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Domestic (U.S., state and local)

   $ 28,563       $ 5,544       $ (10,430

Foreign

     48,596         45,781         55,587   
  

 

 

    

 

 

    

 

 

 

Total income from continuing operations before income taxes

   $ 77,159       $ 51,325       $ 45,157   
  

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2014     2013     2012  

Current:

      

U.S. federal

   $ 2,579      $ 881      $ 236   

State and local

     542        82        (61

Foreign

     11,382        13,464        9,899   
  

 

 

   

 

 

   

 

 

 

Total current provision for income taxes

     14,503        14,427        10,074   
  

 

 

   

 

 

   

 

 

 

Deferred:

      

U.S. federal

     5,437        866        (2,846

State and local

     (446     —          —     

Foreign

     (126     (1,228     (2,021
  

 

 

   

 

 

   

 

 

 

Total deferred provision (benefit) for income taxes

     4,865        (362     (4,867
  

 

 

   

 

 

   

 

 

 

Total provision for income taxes

   $ 19,368      $ 14,065      $ 5,207   
  

 

 

   

 

 

   

 

 

 

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

 

     Years Ended December 31,  
     2014     2013     2012  

Net operating loss and tax credit carryforwards

   $ 19,335      $ 8,029      $ (4,113

Depreciation and amortization

     (6,220     (5,030     (5,684

Accrued expenses/liabilities

     (4,505     954        (1,274

Valuation allowance

     (3,706     (1,887     4,120   

Deferred statutory income

     (29     (2,425     2,084   

Other

     (10     (3     —     
  

 

 

   

 

 

   

 

 

 

Total deferred provision (benefit) for income taxes

   $ 4,865      $ (362   $ (4,867
  

 

 

   

 

 

   

 

 

 

 

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

 

     Years Ended December 31,  
     2014     2013     2012  

Tax at U.S. federal statutory tax rate

   $ 27,005      $ 17,964      $ 15,805   

State income taxes, net of federal tax benefit

     934        82        (61

Foreign rate differential

     (13,164     (9,319     (7,078

Tax holidays

     (2,749     (4,686     (6,450

Permanent differences

     10,170        9,051        3,531   

Tax credits

     (4,894     (5,020     (699

Foreign withholding and other taxes

     2,541        4,643        1,263   

Change in valuation allowance, net of related adjustments

     (7     1,354        (538

Changes in uncertain tax positions

     (468     (4     (613

Change of assertion related to foreign earnings distribution

     —          —          47   
  

 

 

   

 

 

   

 

 

 

Total provision for income taxes

   $ 19,368      $ 14,065      $ 5,207   
  

 

 

   

 

 

   

 

 

 

Withholding taxes on offshore cash movements assessed by certain foreign governments of $1.8 million, $4.1 million and $0.8 million were included in the provision for income taxes in the accompanying Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012, respectively.

Earnings associated with the investments in the Company’s foreign subsidiaries of $380.8 million at December 31, 2014 are considered to be indefinitely reinvested outside of the U.S. Therefore, a U.S. provision for income taxes on those earnings or translation adjustments has not been recorded, as permitted by criterion outlined in ASC 740 “Income Taxes.” Determination of any unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries that are essentially permanent in duration is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates.

The Company has been granted tax holidays in The Philippines, Colombia, Costa Rica and El Salvador. The tax holidays have various expiration dates ranging from 2015 through 2028. In some cases, the tax holidays expire without possibility of renewal. In other cases, the Company expects to renew these tax holidays, but there are no assurances from the respective foreign governments that they will renew them. This could potentially result in future adverse tax consequences in the local jurisdiction, the impact of which is not practicable to estimate due to the inherent complexity of estimating critical variables such as long-term future profitability, tax regulations and rates in the multi-national tax environment in which the Company operates. The Company’s tax holidays decreased the provision for income taxes by $2.7 million ($0.06 per diluted share), $4.7 million ($0.11 per diluted share) and $6.5 million ($0.15 per diluted share) for the years ended December 31, 2014, 2013 and 2012, respectively.

 

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

 

     December 31,  
     2014     2013  

Deferred tax assets:

    

Net operating loss and tax credit carryforwards

   $ 35,400      $ 61,626   

Valuation allowance

     (34,146     (42,664

Accrued expenses

     25,694        21,305   

Deferred revenue

     3,757        4,045   

Depreciation and amortization

     835        559   

Other

     —          104   
  

 

 

   

 

 

 
     31,540        44,975   
  

 

 

   

 

 

 

Deferred tax liabilities:

    

Depreciation and amortization

     (20,172     (26,379

Deferred statutory income

     (772     (241

Accrued liabilities

     (141     (79

Other

     (1     (114
  

 

 

   

 

 

 
     (21,086     (26,813
  

 

 

   

 

 

 

Net deferred tax assets

   $ 10,454      $ 18,162   
  

 

 

   

 

 

 
     December 31,  
     2014     2013  

Classified as follows:

    

Other current assets (Note 10)

   $ 13,703      $ 7,961   

Other long-term liabilities

     (4,786     (2,763

Deferred charges and other assets (Note 15)

     1,681        13,048   

Current deferred income tax liabilities

     (144     (84
  

 

 

   

 

 

 

Net deferred tax assets

   $ 10,454      $ 18,162   
  

 

 

   

 

 

 

There are approximately $185.0 million of income tax loss carryforwards as of December 31, 2014, with varying expiration dates, approximately $131.4 million relating to foreign operations and $53.6 million relating to U.S. state operations. For U.S. federal purposes, $2.7 million of tax credits are available for carryforward as of December 31, 2014, with the latest expiration date ending December 2035. With respect to foreign operations, $109.0 million of the net operating loss carryforwards have an indefinite expiration date and the remaining $22.4 million net operating loss carryforwards have varying expiration dates through December 2035. Regarding the U.S. state and foreign aforementioned tax loss carryforwards, no benefit has been recognized for $50.3 million and $123.5 million, respectively, as it is more likely than not that these losses will expire without realization of tax benefits.

The Company has accrued $13.3 million and $15.0 million as of December 31, 2014 and 2013, respectively, excluding penalties and interest, for the liability for unrecognized tax benefits. As of December 31, 2014, $2.7 million of unrecognized tax benefits have been recorded to “Deferred charges and other assets” in the accompanying Consolidated Balance Sheet in accordance with ASU 2013-11. The remaining $10.6 million of the unrecognized tax benefits at December 31, 2014 and the $15.0 million at December 31, 2013 are recorded in “Long-term income tax liabilities” in the accompanying Consolidated Balance Sheets. Had the Company recognized these tax benefits, approximately $13.3 million and $15.0 million, and the related interest and penalties, would have favorably impacted the effective tax rate in 2014 and 2013, respectively. The Company anticipates that approximately $2.2 million of the unrecognized tax benefits will be recognized in the next twelve months due to a lapse in the applicable statute of limitations.

The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company had $10.1 million and $10.5 million accrued for interest and penalties as of December 31, 2014 and 2013, respectively. Of the accrued interest and penalties at December 31, 2014 and 2013, $3.3 million and $3.8 million, respectively, relate to statutory penalties. The amount of interest and penalties, net, included in the provision for income taxes in the accompanying Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012 was $(0.5) million, $0.4 million and $(0.1) million, respectively.

 

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

 

     Years Ended December 31,  
     2014     2013     2012  

Gross unrecognized tax benefits as of January 1,

   $ 14,991      $ 16,897      $ 17,136   

Prior period tax position increases (decreases) (1)

     —          —          321   

Decreases from settlements with tax authorities

     —          —          (426

Decreases due to lapse in applicable statute of limitations

     —          (390     (561

Foreign currency translation increases (decreases)

     (1,706     (1,516     427   
  

 

 

   

 

 

   

 

 

 

Gross unrecognized tax benefits as of December 31,

   $ 13,285      $ 14,991      $ 16,897   
  

 

 

   

 

 

   

 

 

 

 

(1) 

Includes amounts assumed upon acquisition of Alpine on August 20, 2012.

The Company is currently under audit in several tax jurisdictions. The Company received assessments for the Canadian 2003-2009 audit. Requests for Competent Authority Assistance were filed with both the Canadian Revenue Agency and the U.S. Internal Revenue Service and the Company paid mandatory security deposits to Canada as part of this process. The total amount of deposits, net of fluctuations in the foreign exchange rate, are $15.9 million and $17.3 million as of December 31, 2014 and 2013, respectively, and are included in “Deferred charges and other assets” in the accompanying Consolidated Balance Sheets. Although the outcome of examinations by taxing authorities is always uncertain, the Company believes it is adequately reserved for these audits and that resolution is not expected to have a material impact on its financial condition and results of operations.

The significant tax jurisdictions currently under audit are as follows:

 

Tax Jurisdiction

  

Tax Year Ended

Canada

   2003 to 2009

The Philippines

   2009 and 2010

The Company and its subsidiaries file federal, state and local income tax returns as required in the U.S. and in various foreign tax jurisdictions. The following table presents the major tax jurisdictions and tax years that are open and subject to examination by the respective tax authorities as of December 31, 2014:

 

Tax Jurisdiction

  

Tax Year Ended

Canada    2003 to present
The Philippines    2009 to present
United States    2002 to 2010 (1) and 2011 to present

 

(1) 

These tax years are open to the extent of the net operating loss and tax credit carryforward amounts.

Earnings Per Share
Earnings Per Share

Note 23. 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 a rabbi trust using the treasury stock method.

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

 

     Years Ended December 31,  
     2014      2013      2012  

Basic:

        

Weighted average common shares outstanding

     42,609         42,877         43,105   

Diluted:

        

Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in a rabbi trust

     205         48         43   
  

 

 

    

 

 

    

 

 

 

Total weighted average diluted shares outstanding

     42,814         42,925         43,148   
  

 

 

    

 

 

    

 

 

 

Anti-dilutive shares excluded from the diluted earnings per share calculation

     37         42         —     
  

 

 

    

 

 

    

 

 

 

On August 18, 2011, the Company’s Board authorized the Company to purchase up to 5.0 million shares of its outstanding common stock (the “2011 Share Repurchase Program”). A total of 4.0 million shares have been repurchased under the 2011 Share Repurchase Program since inception. The shares are purchased, from time to time, through open market purchases or in negotiated private transactions, and the purchases are based on factors, including but not limited to, the stock price, management discretion and general market conditions. The 2011 Share Repurchase Program has no expiration date.

The shares repurchased under the Company’s share repurchase programs were as follows (in thousands, except per share amounts):

 

     Total Number                    Total Cost of  
     of Shares      Range of Prices Paid Per Share      Shares  

For the Years Ended

   Repurchased      Low      High      Repurchased  

December 31, 2014

     630       $ 19.80       $ 20.00       $ 12,581   

December 31, 2013

     341       $ 15.61       $ 16.99       $ 5,479   

December 31, 2012

     537       $ 13.85       $ 15.00       $ 7,908   
Commitments and Loss Contingency
Commitments and Loss Contingency

Note 24. Commitments and Loss Contingency

Lease and Purchase Commitments

The Company leases certain equipment and buildings under operating leases having original terms ranging from one to twenty years, many with options to cancel at varying points during the lease. The building leases can contain up to three five-year renewal options. Rental expense under operating leases was as follows (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Rental expense

   $ 44,916       $ 47,365       $ 43,626   
  

 

 

    

 

 

    

 

 

 

The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of December 31, 2014 (in thousands):

 

     Amount  

2015

   $ 33,287   

2016

     24,907   

2017

     21,586   

2018

     20,325   

2019

     15,617   

2020 and thereafter

     35,801   
  

 

 

 

Total minimum payments required

   $ 151,523   
  

 

 

 

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

The following is a schedule of future minimum purchases remaining under the agreements as of December 31, 2014 (in thousands):

 

     Amount  

2015

   $ 33,039   

2016

     21,025   

2017

     10,448   

2018

     1,485   

2019

     1,483   

2020 and thereafter

     1,600   
  

 

 

 

Total minimum payments required

   $ 69,080   
  

 

 

 

Indemnities, Commitments and Guarantees

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

Loss Contingency

The Company from time to time is involved in legal actions arising in the ordinary course of business. With respect to these matters, management believes that it has adequate legal defenses and/or when possible and appropriate, 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 or results of operations.

Defined Benefit Pension Plan and Postretirement Benefits
Defined Benefit Pension Plan and Postretirement Benefits

Note 25. Defined Benefit Pension Plan and Postretirement Benefits

Defined Benefit Pension Plans

The Company sponsors non-contributory defined benefit pension plans (the “Pension Plans”) for its covered employees in The Philippines. The Pension Plans provide defined benefits based on years of service and final salary. All permanent employees meeting the minimum service requirement are eligible to participate in the Pension Plans. As of December 31, 2014, the Pension Plans were unfunded. The Company expects to make no cash contributions to its Pension Plans during 2015.

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

 

     December 31,  
     2014     2013  

Beginning benefit obligation

   $ 2,481      $ 1,997   

Service cost

     387        392   

Interest cost

     104        137   

Actuarial (gains) losses

     50        136   

Effect of foreign currency translation

     78        (181
  

 

 

   

 

 

 

Ending benefit obligation

   $ 3,100      $ 2,481   
  

 

 

   

 

 

 
    

Unfunded status

   $ (3,100   $ (2,481
  

 

 

   

 

 

 

Net amount recognized

   $ (3,100   $ (2,481
  

 

 

   

 

 

 

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

 

     Years Ended December 31,
         2014            2013            2012    

Discount rate

   4.5% - 4.9%    4.3% - 5.2%    5.9%

Rate of compensation increase

   2.0%    2.0%    2.0%

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

 

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

 

     Years Ended December 31,  
     2014     2013     2012  

Service cost

   $ 387      $ 392      $ 372   

Interest cost

     104        137        120   

Recognized actuarial (gains)

     (50     (60     (46
  

 

 

   

 

 

   

 

 

 

Net periodic benefit cost

     441        469        446   

Unrealized net actuarial (gains), net of tax

     (1,008     (1,150     (1,413
  

 

 

   

 

 

   

 

 

 

Total amount recognized in net periodic benefit cost and other accumulated comprehensive income (loss)

   $ (567   $ (681   $ (967
  

 

 

   

 

 

   

 

 

 

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

 

Years Ending December 31,

   Amount  

2015

   $ 28   

2016

     133   

2017

     77   

2018

     58   

2019

     303   

2020 - 2024

     963   

The Company expects to recognize less than $0.1 million of net actuarial gains as a component of net periodic benefit cost in 2015.

Employee Retirement Savings Plans

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

 

     Years Ended December 31,  
     2014      2013      2012  

401(k) plan contributions

   $ 870       $ 895       $ 1,221   
  

 

 

    

 

 

    

 

 

 

Split-Dollar Life Insurance Arrangement

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

 

     December 31,  
     2014      2013  

Postretirement benefit obligation

   $ 46       $ 81   

Unrealized gains (losses) in AOCI (1)

     342         314   

 

(1)

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

 

Post-Retirement Defined Contribution Healthcare Plan

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

Stock-Based Compensation
Stock-Based Compensation

Note 26. Stock-Based Compensation

The Company’s stock-based compensation plans include the 2011 Equity Incentive Plan, the 2004 Non-Employee Director Fee Plan and the Deferred Compensation Plan. The following table summarizes the stock-based compensation expense (primarily in the Americas), income tax benefits related to the stock-based compensation and excess tax benefits (deficiencies) (in thousands):

 

     Years Ended December 31,  
     2014     2013     2012  

Stock-based compensation (expense) (1) 

   $ (6,381   $ (4,873   $ (3,467

Income tax benefit (2)

     2,233        1,706        1,213   

Excess tax benefit (deficiency) from stock-based compensation (3)

     (82     (187     (292

 

(1)

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

 

(2)

Included in “Income taxes” in the accompanying Consolidated Statements of Operations.

 

(3)

Included in “Additional paid-in capital” in the accompanying Consolidated Statements of Changes in Shareholders’ Equity.

There were no capitalized stock-based compensation costs at December 31, 2014, 2013 and 2012.

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

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

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

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

 

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

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

 

     Years Ended December 31,  
     2014     2013     2012  

Expected volatility

     38.9     45.2     47.1

Weighted-average volatility

     38.9     45.2     47.1

Expected dividend rate

     0.0     0.0     0.0

Expected term (in years)

     5.0        5.0        4.7   

Risk-free rate

     1.7     0.8     0.8

The following table summarizes SARs activity as of December 31, 2014 and for the year then ended:

 

Stock Appreciation Rights

   Shares (000s)     Weighted
Average
Exercise Price
     Weighted
Average
Remaining
Contractual
Term (in
years)
     Aggregate
Intrinsic
Value (000s)
 

Outstanding at January 1, 2014

     963      $ —           

Granted

     246      $ —           

Exercised

     (77   $ —           

Forfeited or expired

     (173   $ —           
  

 

 

         

Outstanding at December 31, 2014

     959      $ —           7.0       $ 5,171   
  

 

 

   

 

 

    

 

 

    

 

 

 

Vested or expected to vest at December 31, 2014

     959      $ —           7.0       $ 5,171   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at December 31, 2014

     548      $ —           5.8       $ 2,700   
  

 

 

   

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2014      2013      2012  

Number of SARs granted

     246         318         259   

Weighted average grant-date fair value per SAR

   $ 7.20       $ 6.08       $ 5.97   

Intrinsic value of SARs exercised

   $ 391       $ 488       $ —     

Fair value of SARs vested

   $ 1,553       $ 1,298       $ 1,388   

The following table summarizes nonvested SARs activity as of December 31, 2014 and for the year then ended:

 

Nonvested Stock Appreciation Rights    Shares (000s)     Weighted
Average Grant-
Date Fair
Value
 

Nonvested at January 1, 2014

     535      $ 6.17   

Granted

     246      $ 7.20   

Vested

     (246   $ 6.31   

Forfeited or expired

     (124   $ 6.48   
  

 

 

   

 

 

 

Nonvested at December 31, 2014

     411      $ 6.61   
  

 

 

   

 

 

 

 

As of December 31, 2014, there was $1.7 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested SARs granted under the 2011 Plan and 2001 Plan. This cost is expected to be recognized over a weighted average period of 1.3 years.

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

Changes in the probability of achieving the performance goals from period to period will result in corresponding changes in compensation expense. The employment-based restricted shares currently outstanding vest one-third on each of the first three anniversaries of the date of grant, provided the participant is employed by the Company on such date. In the event of a change in control (as defined in the 2011 Plan and 2001 Plan) prior to the date the restricted shares vest, all of the restricted shares will vest and the restrictions on transfer will lapse with respect to such vested shares on the date of the change in control, provided that participant is employed by the Company on the date of the change in control.

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

The following table summarizes nonvested restricted shares/RSUs activity as of December 31, 2014 and for the year then ended:

 

Nonvested Restricted Shares and RSUs

   Shares (000s)     Weighted
Average Grant-
Date Fair
Value
 

Nonvested at January 1, 2014

     1,367      $ 15.96   

Granted

     500      $ 19.77   

Vested

     (57   $ 15.67   

Forfeited or expired

     (616   $ 17.45   
  

 

 

   

Nonvested at December 31, 2014

     1,194      $ 16.80   
  

 

 

   

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

 

     Years Ended December 31,  
     2014      2013      2012  

Number of restricted shares/RSUs granted

     500         706         420   

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

   $ 19.77       $ 15.25       $ 15.21   

Fair value of restricted shares/RSUs vested

   $ 895       $ 366       $ 3,845   

As of December 31, 2014, based on the probability of achieving the performance goals, there was $14.1 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted shares/RSUs granted under the 2011 Plan and 2001 Plan. This cost is expected to be recognized over a weighted average period of 1.4 years.

 

2004 Non-Employee Director Fee Plan The Company’s 2004 Non-Employee Director Fee Plan (the “2004 Fee Plan”), as last amended on May 17, 2012, provided that all new non-employee directors joining the Board would receive an initial grant of shares of common stock on the date the new director is elected or appointed, the number of which will be determined by dividing $60,000 by the closing price of the Company’s common stock on the trading day immediately preceding the date a new director is elected or appointed, rounded to the nearest whole number of shares. The initial grant of shares vested in twelve equal quarterly installments, one-twelfth on the date of grant and an additional one-twelfth on each successive third monthly anniversary of the date of grant. The award lapses with respect to all unvested shares in the event the non-employee director ceases to be a director of the Company, and any unvested shares are forfeited.

The 2004 Fee Plan also provided that each non-employee director would receive, on the day after the annual shareholders meeting, an annual retainer for service as a non-employee director (the “Annual Retainer”). Prior to May 17, 2012, the Annual Retainer was $95,000, of which $50,000 was payable in cash, and the remainder was paid in stock. The annual grant of cash vested in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant. The annual grant of shares paid to non-employee directors prior to May 17, 2012 vests in eight equal quarterly installments, one-eighth on the day following the annual meeting of shareholders, and an additional one-eighth on each successive third monthly anniversary of the date of grant. On May 17, 2012, upon the recommendation of the Compensation and Human Resource Development Committee, the Board adopted the Fifth Amended and Restated Non-Employee Director Fee Plan (the “Amendment”), which increased the common stock component of the Annual Retainer by $30,000, resulting in a total Annual Retainer of $125,000, of which $50,000 was payable in cash and the remainder paid in stock. In addition, the Amendment also changed the vesting period for the annual equity award, from a two-year vesting period, to a one-year vesting period (consisting of four equal quarterly installments, one-fourth on the date of grant and an additional one-fourth on each successive third monthly anniversary of the date of grant). The award lapses with respect to all unpaid cash and unvested shares in the event the non-employee director ceases to be a director of the Company, and any unvested shares and unpaid cash are forfeited.

In addition to the Annual Retainer award, the 2004 Fee Plan also provided for any non-employee Chairman of the Board to receive an additional annual cash award of $100,000, and each non-employee director serving on a committee of the Board to receive an additional annual cash award. The additional annual cash award for the Chairperson of the Audit Committee is $20,000 and Audit Committee members’ are entitled to an annual cash award of $10,000. Prior to May 20, 2011, the annual cash awards for the Chairpersons of the Compensation and Human Resource Development Committee, Finance Committee and Nominating and Corporate Governance Committee were $12,500 and the members of such committees were entitled to an annual cash award of $7,500. On May 20, 2011, the Board increased the additional annual cash award to the Chairperson of the Compensation and Human Resource Development Committee to $15,000. All other additional cash awards remained unchanged.

The 2004 Fee Plan expired in May 2014, prior to the 2014 Annual Shareholder Meeting. In March 2014, upon the recommendation of the Compensation Committee, the Board determined that, following the expiration of the 2004 Fee Plan, the compensation of non-employee Directors should continue on the same terms as provided in the Fifth Amended and Restated Non-Employee Director Fee Plan, and that the stock portion of such compensation would be issued under the 2011 Plan.

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

 

The following table summarizes nonvested common stock share award activity as of December 31, 2014 and for the year then ended:

 

Nonvested Common Stock Share Awards

   Shares (000s)     Weighted
Average Grant-
Date Fair
Value
 

Nonvested at January 1, 2014

     9      $ 16.01   

Granted

     36      $ 20.15   

Vested

     (33   $ 18.95   

Forfeited or expired

     —        $ —     
  

 

 

   

Nonvested at December 31, 2014

     12      $ 20.24   
  

 

 

   

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

 

     Years Ended December 31,  
     2014      2013      2012  

Number of share awards granted

     36         37         42   

Weighted average grant-date fair value per share award

   $ 20.15       $ 16.01       $ 16.15   

Fair value of share awards vested

   $ 630       $ 669       $ 771   

As of December 31, 2014, there was $0.2 million of total unrecognized compensation costs, net of estimated forfeitures, related to nonvested common stock share awards granted under the 2004 Fee Plan. This cost is expected to be recognized over a weighted average period of 0.7 years.

Deferred Compensation Plan The Company’s non-qualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which is not shareholder-approved, was adopted by the Board effective December 17, 1998. It was last amended and restated on August 20, 2014, effective as of January 1, 2014. It provides certain eligible employees the ability to defer any portion of their compensation until the participant’s retirement, termination, disability or death, or a change in control of the Company. Using the Company’s common stock, the Company matches 50% of the amounts deferred by certain senior management participants on a quarterly basis up to a total of $12,000 per year for the president, chief executive officer and executive vice presidents and $7,500 per year for senior vice presidents, global vice presidents and vice presidents (participants below the level of vice president are not eligible to receive matching contributions from the Company). Matching contributions and the associated earnings vest over a seven year service period. Deferred compensation amounts used to pay benefits, which are held in a rabbi trust, include investments in various mutual funds and shares of the Company’s common stock (See Note 13, Investments Held in Rabbi Trust). As of December 31, 2014 and 2013, liabilities of $7.0 million and $6.4 million, respectively, of the Deferred Compensation Plan were recorded in “Accrued employee compensation and benefits” in the accompanying Consolidated Balance Sheets.

Additionally, the Company’s common stock match associated with the Deferred Compensation Plan, with a carrying value of approximately $1.5 million and $1.6 million at December 31, 2014 and 2013, respectively, is included in “Treasury stock” in the accompanying Consolidated Balance Sheets.

 

The following table summarizes nonvested common stock activity as of December 31, 2014 and for the year then ended:

 

Nonvested Common Stock

   Shares (000s)     Weighted
Average  Grant-
Date Fair

Value
 

Nonvested at January 1, 2014

     6      $ 16.89   

Granted

     10      $ 20.54   

Vested

     (10   $ 20.13   

Forfeited or expired

     (1   $ 16.30   
  

 

 

   

Nonvested at December 31, 2014

     5      $ 17.88   
  

 

 

   

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

 

     Years Ended December 31,  
     2014      2013      2012  

Number of shares of common stock granted

     10         13         15   

Weighted average grant-date fair value per common stock

   $ 20.54       $ 16.76       $ 15.27   

Fair value of common stock vested

   $ 212       $ 257       $ 195   

Cash used to settle the obligation

   $ 1,493       $ 1,014       $ 459   

As of December 31, 2014, there was less than $0.1 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested common stock granted under the Deferred Compensation Plan. This cost is expected to be recognized over a weighted average period of 2.1 years.

Segments and Geographic Information
Segments and Geographic Information

Note 27. 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 contact management solutions (with an emphasis on technical support and customer service) and technical staffing and (2) EMEA, which includes Europe, the Middle East and Africa, and provides outsourced customer contact management 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 contact management needs.

 

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

 

     Americas     EMEA     Other (1)     Consolidated  

Year Ended December 31, 2014:

        

Revenues (2)

   $ 1,070,824      $ 256,699        $ 1,327,523   

Percentage of revenues

     80.7     19.3       100.0

 

Depreciation, net (2)

   $ 40,557      $ 4,806        $ 45,363   

Amortization of intangibles (2)

   $ 14,396      $ —          $ 14,396   

 

Income (loss) from continuing operations

   $ 113,549      $ 16,208      $ (50,202   $ 79,555   

Other (expense), net

         (2,396     (2,396

Income taxes

         (19,368     (19,368
        

 

 

 

Income from continuing operations, net of taxes

           57,791   

(Loss) from discontinued operations, net of taxes (3)

   $ —        $ —            —     
        

 

 

 

Net income

         $ 57,791   
        

 

 

 

 

Total assets as of December 31, 2014

   $ 1,080,010      $ 1,373,590      $ (1,509,100   $ 944,500   
  

 

 

   

 

 

   

 

 

   

 

 

 

Year Ended December 31, 2013:

        

Revenues (2) 

   $ 1,050,813      $ 212,647        $ 1,263,460   

Percentage of revenues

     83.2     16.8       100.0

 

Depreciation, net (2)

   $ 37,818      $ 4,266        $ 42,084   

Amortization of intangibles (2)

   $ 14,863      $ —          $ 14,863   

 

Income (loss) from continuing operations

   $ 94,006      $ 6,052      $ (46,531   $ 53,527   

Other (expense), net

         (2,202     (2,202

Income taxes

         (14,065     (14,065
        

 

 

 

Income from continuing operations, net of taxes

           37,260   

(Loss) from discontinued operations, net of taxes (3) 

   $ —        $ —            —     
        

 

 

 

Net income

         $ 37,260   
        

 

 

 

 

Total assets as of December 31, 2013

   $ 1,097,788      $ 1,409,185      $ (1,556,712   $ 950,261   
  

 

 

   

 

 

   

 

 

   

 

 

 

Year Ended December 31, 2012:

        

Revenues (2) 

   $ 947,147      $ 180,551        $ 1,127,698   

Percentage of revenues

     84.0     16.0       100.0

 

Depreciation, net (2)

   $ 36,494      $ 3,875        $ 40,369   

Amortization of intangibles (2)

   $ 10,479      $ —          $ 10,479   

 

Income (loss) from continuing operations

   $ 93,580      $ 5,488      $ (51,289   $ 47,779   

Other (expense), net

         (2,622     (2,622

Income taxes

         (5,207     (5,207
        

 

 

 

Income from continuing operations, net of taxes

           39,950   

(Loss) from discontinued operations, net of taxes (3) 

   $ (10,707   $ (820       (11,527
        

 

 

 

Net income

         $ 28,423   
        

 

 

 

 

Total assets as of December 31, 2012

   $ 1,265,119      $ 1,100,938      $ (1,457,368   $ 908,689   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Other items (including corporate costs, other income and expense, and income taxes) are shown for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the years ended December 31, 2014, 2013 and 2012. The accounting policies of the reportable segments are the same as those described in Note 1 to the accompanying Consolidated Financial Statements. Inter-segment revenues are not material to the Americas and EMEA segment results. The Company evaluates the performance of its geographic segments based on revenues and income (loss) from continuing operations, and does not include segment assets or other income and expense items for management reporting purposes.

 

(2) 

Revenues, depreciation and amortization include results from continuing operations only.

 

(3) 

Includes both the (loss) from discontinued operations, net of taxes, and the (loss) on sale of discontinued operations, net of taxes, if any.

 

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

 

     Years Ended December 31,  
     2014     2013     2012  
     Amount      % of Revenues     Amount      % of Revenues     Amount      % of Revenues  

Americas

   $ 212,607         19.9   $ 162,888         15.5   $ 130,072         13.7

EMEA

     3,519         1.4     3,513         1.7     3,018         1.7
  

 

 

      

 

 

      

 

 

    
   $ 216,126         16.3   $ 166,401         13.2   $ 133,090         11.8
  

 

 

      

 

 

      

 

 

    

The Company has multiple distinct contracts with AT&T spread across multiple lines of businesses, which expire at varying dates between 2015 and 2017. The Company has historically renewed most of these contracts. However, there is no assurance that these contracts will be renewed, or if renewed, will be on terms as favorable as the existing contracts. Each line of business is governed by separate business terms, conditions and metrics. Each line of business also has a separate decision maker such that a loss of one line of business would not necessarily impact the Company’s relationship with the client and decision makers on other lines of business. The loss of (or the failure to retain a significant amount of business with) any of the Company’s key clients, including AT&T, could have a material adverse effect on its performance. Many of the Company’s contracts contain penalty provisions for failure to meet minimum service levels and are cancelable by the client at any time or on short notice. Also, clients may unilaterally reduce their use of the Company’s services under the contracts without penalty.

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

 

     Years Ended December 31,  
     2014     2013     2012  
     Amount      % of Revenues     Amount      % of Revenues     Amount      % of Revenues  

Americas

   $ 70,255         6.6   $ 73,226         7.0   $ 70,311         7.4

EMEA

     —           0.0     —           0.0     —           0.0
  

 

 

      

 

 

      

 

 

    
   $ 70,255         5.3   $ 73,226         5.8   $ 70,311         6.2
  

 

 

      

 

 

      

 

 

    

The Company’s top ten clients accounted for approximately 46.8%, 45.9% and 47.8% of its consolidated revenues during the years ended December 31, 2014, 2013 and 2012, respectively.

 

Information about the Company’s operations by geographic location was as follows (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Revenues: (1)

        

United States

   $ 425,746       $ 388,775       $ 302,046   

The Philippines

     205,332         213,132         225,629   

Canada

     195,739         210,463         198,585   

Costa Rica

     97,295         101,888         100,101   

El Salvador

     52,609         46,301         46,910   

Australia

     33,126         36,725         24,633   

China

     32,167         25,478         21,614   

Mexico

     20,439         23,701         23,315   

Other

     8,371         4,350         4,314   
  

 

 

    

 

 

    

 

 

 

Total Americas

     1,070,824         1,050,813         947,147   
  

 

 

    

 

 

    

 

 

 

Germany

     88,887         77,950         73,380   

Sweden

     68,057         49,953         22,229   

United Kingdom

     42,328         33,750         35,833   

Romania

     18,288         14,856         10,773   

Hungary

     8,723         8,525         7,619   

Netherlands

     3,126         3,073         6,511   

Other

     27,290         24,540         24,206   
  

 

 

    

 

 

    

 

 

 

Total EMEA

     256,699         212,647         180,551   
  

 

 

    

 

 

    

 

 

 
   $ 1,327,523       $ 1,263,460       $ 1,127,698   
  

 

 

    

 

 

    

 

 

 

 

(1)

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

 

     December 31,  
     2014      2013  

Long-Lived Assets: (1)

     

United States

   $ 108,030       $ 120,759   

Canada

     16,257         23,164   

The Philippines

     14,656         17,197   

Costa Rica

     5,625         4,759   

El Salvador

     3,298         2,552   

Australia

     2,923         3,799   

Mexico

     1,575         1,902   

Other

     6,998         6,695   
  

 

 

    

 

 

 

Total Americas

     159,362         180,827   
  

 

 

    

 

 

 

United Kingdom

     3,871         4,158   

Sweden

     2,478         3,676   

Germany

     2,310         2,097   

Romania

     682         679   

Slovakia

     496         666   

Norway

     490         603   

Hungary

     442         564   

Other

     369         334   
  

 

 

    

 

 

 

Total EMEA

     11,138         12,777   
  

 

 

    

 

 

 
   $ 170,500       $ 193,604   
  

 

 

    

 

 

 

 

(1)

Long-lived assets include property and equipment, net, and intangibles, net.

 

Goodwill by segment was as follows (in thousands):

 

     December 31,  
     2014      2013  

Americas

   $ 193,831       $ 199,802   

EMEA

     —           —     
  

 

 

    

 

 

 
   $ 193,831       $ 199,802   
  

 

 

    

 

 

 

Revenues for the Company’s products and services were as follows (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Outsourced customer contract management services

   $ 1,303,607       $ 1,240,328       $ 1,104,442   

Fulfillment services

     18,392         16,953         16,357   

Enterprise support services

     5,524         6,179         6,899   
  

 

 

    

 

 

    

 

 

 
   $ 1,327,523       $ 1,263,460       $ 1,127,698   
  

 

 

    

 

 

    

 

 

 

Other Income (Expense)
Other Income (Expense)

Note 28. Other Income (Expense)

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

 

     Years Ended December 31,  
     2014      2013      2012  

Foreign currency transaction gains (losses)

   $ (1,740    $ (5,962    $ (2,856

Gains (losses) on foreign currency derivative instruments not designated as hedges

     (44      4,216         (295

Gains (losses) on liquidation of foreign subsidiaries

                —           (582

Other miscellaneous income (expense)

     441         985         1,200   
  

 

 

    

 

 

    

 

 

 
   $ (1,343    $ (761    $ (2,533
  

 

 

    

 

 

    

 

 

 
Related Party Transactions
Related Party Transactions

Note 29. Related Party Transactions

In January 2008, the Company entered into a lease for a customer contact management center located in Kingstree, South Carolina. The landlord, Kingstree Office One, LLC, is an entity controlled by John H. Sykes, the founder, former Chairman and 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. There are significant penalties for early cancellation which decrease over time. The Company paid $0.4 million to the landlord during each of the years ended December 31, 2014, 2013 and 2012 under the terms of the lease.

Schedule II - Valuation and Qualifying Accounts
Schedule II - Valuation and Qualifying Accounts

Schedule II — Valuation and Qualifying Accounts

Years ended December 31, 2014, 2013 and 2012:

 

(in thousands)

   Balance at
Beginning
of Period
     Charged
(Credited)
to Costs
and
Expenses
    Additions
(Deductions)(1)
    Balance at
End of
Period
 

Allowance for doubtful accounts:

         

Year ended December 31, 2014

   $ 4,987         (181   $ (145   $ 4,661   

Year ended December 31, 2013

     5,081         483        (577     4,987   

Year ended December 31, 2012

     4,304         1,115        (338     5,081   

Valuation allowance for net deferred tax assets:

         

Year ended December 31, 2014

   $ 42,664       $ (8,518   $ —        $ 34,146   

Year ended December 31, 2013

     43,298         (634     —          42,664   

Year ended December 31, 2012

     38,544         4,754        —          43,298   

Reserves for value added tax receivables:

         

Year ended December 31, 2014

   $ 2,530       $ (638   $ (1,617   $ 275   

Year ended December 31, 2013

     3,076         143        (689     2,530   

Year ended December 31, 2012

     2,355         546        175        3,076   

 

(1) 

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

Overview and Summary of Significant Accounting Policies (Policies)

Business Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) provides comprehensive outsourced customer contact management solutions and services in the business process outsourcing arena to companies, primarily within the communications, financial services, technology/consumer, transportation and leisure, and healthcare industries. SYKES provides flexible, high-quality outsourced customer contact management services (with an emphasis on inbound technical support and customer service), which includes customer assistance, healthcare and roadside assistance, technical support and product sales to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels encompassing phone, e-mail, social media, text messaging and chat. SYKES complements its outsourced customer contact management services with various enterprise support services in the United States that encompass services for a company’s internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services including order processing, payment processing, inventory control, product delivery and product returns handling. The Company has operations in two reportable segments entitled (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, 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; and (2) EMEA, which includes Europe, the Middle East and Africa.

Acquisition In August 2012, the Company completed the acquisition of Alpine Access, Inc. (“Alpine”), a Delaware corporation, pursuant to the Agreement and Plan of Merger, dated July 27, 2012. The Company has reflected the operating results in the Consolidated Statements of Operations since August 20, 2012. See Note 2, Acquisition of Alpine Access, Inc., for additional information on the acquisition of this business.

Discontinued Operations In March 2012, the Company sold its operations in Spain (the “Spanish operations”), pursuant to an asset purchase agreement dated March 29, 2012 and a stock purchase agreement dated March 30, 2012. The Company reflected the operating results related to the Spanish operations as discontinued operations in the Consolidated Statement of Operations for the year ended December 31, 2012. Cash flows from discontinued operations are included in the Consolidated Statement of Cash Flows for the year ended December 31, 2012. See Note 3, Discontinued Operations, for additional information on the sale of the Spanish operations.

Principles of Consolidation The consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.

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

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

Recognition of Revenue The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 605 “Revenue Recognition” (“ASC 605”). The Company primarily recognizes revenues from services as the services are performed, which is based on either a per minute, per call, per transaction or per time and material basis, under a fully executed contractual agreement and record reductions to revenues for contractual penalties and holdbacks for failure to meet specified minimum service levels and other performance based contingencies. Revenue recognition is limited to the amount that is not contingent upon delivery of any future product or service or meeting other specified performance conditions. Product sales, accounted for within our fulfillment services, are recognized upon shipment to the customer and satisfaction of all obligations.

 

Revenues from fulfillment services account for 1.4%, 1.3% and 1.5% of total consolidated revenues for the years ended December 31, 2014, 2013 and 2012, respectively, some of which contain multiple-deliverables. The service offerings for these fulfillment service contracts typically include pick-pack-and-ship, warehousing, process management, finished goods assembly and pass-through costs. In accordance with ASC 605-25 “Revenue Recognition — Multiple-Element Arrangements” (“ASC 605-25”) [as amended by Accounting Standards Update (“ASU”) 2009-13 “Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements — a consensus of the FASB Emerging Issues Task Force” (“ASU 2009-13”)], the Company determines if the services provided under these contracts with multiple-deliverables represent separate units of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value, and where return rights exist, delivery or performance of the undelivered items is considered probable and substantially within our control. If those deliverables are determined to be separate units of accounting, revenues from these services are recognized as the services are performed under a fully executed contractual agreement. If those deliverables are not determined to be separate units of accounting, revenue for the delivered services are bundled into a single unit of accounting and recognized on the proportional performance method using the straight-line basis over the contract period, or the actual number of operational seats used to serve the client, as appropriate.

The Company allocates revenue to each of the deliverables based on a selling price hierarchy of vendor specific objective evidence (“VSOE”), third-party evidence, and then estimated selling price. VSOE is based on the price charged when the deliverable is sold separately. Third-party evidence is based on largely interchangeable competitor services in standalone sales to similarly situated customers. Estimated selling price is based on the Company’s best estimate of what the selling prices of deliverables would be if they were sold regularly on a standalone basis. Estimated selling price is established considering multiple factors including, but not limited to, pricing practices in different geographies, service offerings, and customer classifications. Once the Company allocates revenue to each deliverable, the Company recognizes revenue when all revenue recognition criteria are met. As of December 31, 2014, the Company’s fulfillment contracts with multiple-deliverables met the separation criteria as outlined in ASC 605-25 and the revenue was accounted for accordingly. Other than these fulfillment contracts, the Company had no other contracts that contain multiple-deliverables as of December 31, 2014.

Cash and Cash Equivalents — Cash and cash equivalents consist of cash and highly liquid short-term investments. Cash in the amount of $215.1 million and $212.0 million at December 31, 2014 and 2013, respectively, was primarily held in interest bearing investments, which have original maturities of less than 90 days. Cash and cash equivalents of $194.4 million and $195.0 million at December 31, 2014 and 2013, respectively, were held in international operations and may be subject to additional taxes if repatriated to the United States (“U.S.”).

Restricted Cash 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. Restricted cash is included in “Other current assets” and “Deferred charges and other assets” in the accompanying Consolidated Balance Sheets.

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

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

The carrying value of property and equipment to be held and used is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360 “Property, Plant and Equipment.” For purposes of recognition and measurement of an impairment loss, assets are grouped at the lowest levels for which there are identifiable cash flows (the “reporting unit”). An asset is considered to be impaired when the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition does not exceed its carrying amount. The amount of the impairment loss, if any, is measured as the amount by which the carrying value of the asset exceeds its estimated fair value, which is generally determined based on appraisals or sales prices of comparable assets or independent third party offers. Occasionally, the Company redeploys property and equipment from under-utilized centers to other locations to improve capacity utilization if it is determined that the related undiscounted future cash flows in the under-utilized centers would not be sufficient to recover the carrying amount of these assets. Except as discussed in Note 5, Fair Value, the Company determined that its property and equipment were not impaired as of December 31, 2014.

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

Goodwill The Company accounts for goodwill and other intangible assets under ASC 350 “Intangibles — Goodwill and Other” (“ASC 350”). The Company expects to receive future benefits from previously acquired goodwill over an indefinite period of time. For goodwill and other intangible assets with indefinite lives not subject to amortization, the Company reviews goodwill and intangible assets for impairment at least annually in the third quarter, and more frequently in the presence of certain circumstances. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, then the Company is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss, if any.

The Company elected to forgo the option to first assess qualitative factors and completed its annual two-step goodwill impairment test during the three months ended September 30, 2014. Under ASC 350, the carrying value of assets is calculated at the reporting unit level. The quantitative assessment of goodwill includes comparing a reporting unit’s calculated fair value to its carrying value. The calculation of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth, the useful life over which cash flows will occur 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 recorded to the extent that the fair value of the goodwill within the reporting unit is less than its carrying value. As of July 31, 2014, the Company concluded that the fair value of each reporting unit was substantially in excess of its carrying value and goodwill was not impaired.

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

Value Added Tax Receivables — The Philippine operations are subject to value added tax (“VAT”) which is usually applied to all goods and services purchased throughout The Philippines. Upon validation and certification of the VAT receivables by the Philippine government, the resulting value added tax certificates (“certificates”) can be either used to offset current tax obligations or offered for sale to the Philippine government. The VAT receivables balance is recorded at its net realizable value.

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

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

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

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

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

Deferred Revenue The Company receives up-front fees in connection with certain contracts. The deferred revenue is earned over the service periods of the respective contracts, which range from 30 days to seven years. Deferred revenue included in current liabilities in the accompanying Consolidated Balance Sheets includes the up-front fees associated with services to be provided over the next ensuing twelve month period and the up-front fees associated with services to be provided over multiple years in connection with contracts that contain cancellation and refund provisions, whereby the manufacturers or customers can terminate the contracts and demand pro-rata refunds of the up-front fees with short notice. Deferred revenue included in current liabilities in the accompanying Consolidated Balance Sheets also includes estimated penalties and holdbacks for failure to meet specified minimum service levels in certain contracts and other performance based contingencies.

Stock-Based Compensation — The Company has three stock-based compensation plans: the 2011 Equity Incentive Plan (for employees and certain non-employees), the 2004 Non-Employee Director Fee Plan (for non-employee directors), both approved by the shareholders, and the Deferred Compensation Plan (for certain eligible employees). All of these plans are discussed more fully in Note 26, Stock-Based Compensation. Stock-based awards under these plans may consist of common stock, stock options, cash-settled or stock-settled stock appreciation rights, restricted stock and other stock-based awards. The Company issues common stock and uses treasury stock to satisfy stock option exercises or vesting of stock awards.

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

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

 

   

Cash, Short-Term and Other Investments, Investments Held in Rabbi Trust and Accounts Payable The carrying values for cash, short-term and other investments, investments held in rabbi trust and accounts payable approximate their fair values.

 

   

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

 

   

Long-Term Debt The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates.

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

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

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

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

 

   

Level 1 Quoted prices for identical instruments in active markets.

 

   

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

 

   

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

 

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

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

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

Money Market and Open-End Mutual Funds The Company uses quoted market prices in active markets to determine the fair value of money market and open-end mutual funds, which are classified in Level 1 of the fair value hierarchy.

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

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 13, Investments Held in Rabbi Trust, and Note 26, Stock-Based Compensation.

Guaranteed Investment Certificates Guaranteed investment certificates, with variable interest rates linked to the prime rate, approximate fair value due to the automatic ability to re-price with changes in the market; such items are classified in Level 2 of the fair value hierarchy.

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

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

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

 

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

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedging activities. This process includes linking all derivatives that are designated as cash flow hedges to forecasted transactions. Hedges of a net investment in a foreign operation are linked to the specific foreign operation. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective on a prospective and retrospective basis. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge or if a forecasted hedge is no longer probable of occurring, or if the Company de-designates a derivative as a hedge, the Company discontinues hedge accounting prospectively. At December 31, 2014 and 2013, all hedges were determined to be highly effective.

The Company also periodically enters into forward contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to reduce the effects from fluctuations caused by volatility in currency exchange rates on the Company’s operating results and cash flows. All changes in the fair value of the derivative instruments are included in “Other income (expense)”. See Note 12, Financial Derivatives, for further information on financial 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 contracts are entered into to protect against the risk that the eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates.

New Accounting Standards Not Yet Adopted

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (“ASU 2014-08”). The amendments in ASU 2014-08 indicate that only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results will be reported as discontinued operations in the financial statements. Currently, a component of an entity that is a reportable segment, an operating segment, a reporting unit, a subsidiary, or an asset group is eligible for discontinued operations presentation. The amendments should be applied to all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. The adoption of ASU 2014-08 on January 1, 2015 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The amendments in ASU 2014-09 outline a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and indicate that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the impact that the adoption of ASU 2014-09 may have on its financial condition, results of operations and cash flows.

 

In June 2014, the FASB issued ASU 2014-12 “Compensation – Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification Topic 718, “Compensation — Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company does not expect the adoption of ASU 2014-12 to materially impact its financial condition, results of operations and cash flows.

In January 2015, the FASB issued ASU 2015-01 “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20) Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). This amendment eliminates from U.S. GAAP the concept of extraordinary items as part of the FASB’s initiative to reduce complexity in accounting standards. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Company does not expect the adoption of ASU 2015-01 to materially impact its financial condition, results of operations and cash flows.

New Accounting Standards Recently Adopted

In March 2013, the FASB issued ASU 2013-05 “Foreign Currency Matters (Topic 830) – Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity” (“ASU 2013-05”). The amendments in ASU 2013-05 indicate that a cumulative translation adjustment (“CTA”) is attached to the parent’s investment in a foreign entity and should be released in a manner consistent with the derecognition guidance on investments in entities. Thus, the entire amount of the CTA associated with the foreign entity would be released when there has been a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity, a loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated), or a step acquisition for a foreign entity (i.e., when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity). ASU 2013-05 does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. The amendments in ASU 2013-05 are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. The adoption of ASU 2013-05 on January 1, 2014 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In July 2013, the FASB issued ASU 2013-11 “Income Taxes (Topic 740) – Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”). The amendments in ASU 2013-11 indicate that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in ASU 2013-11 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of ASU 2013-11 on January 1, 2014 resulted in a $3.1 million reclassification of a portion of the Company’s unrecognized tax benefits from “Long-term income tax liabilities” to “Deferred charges and other assets.” See Note 22, Income Taxes, for further information.

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 a rabbi trust using the treasury stock method.

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.

Acquisition of Alpine Access, Inc. (Tables)

The following table summarizes the final purchase price allocation of the fair values of the assets acquired and liabilities assumed, all included in the Americas segment (in thousands):

 

     Amount  

Cash and cash equivalents

   $ 1,859   

Receivables

     11,831   

Prepaid expenses

     617   
  

 

 

 

Total current assets

     14,307   

Property and equipment

     11,326   

Goodwill

     80,766   

Intangibles

     57,720   

Deferred charges and other assets

     916   

Accounts payable

     (880

Accrued employee compensation and benefits

     (3,774

Income taxes payable

     (141

Deferred revenue

     (94

Other accrued expenses and current liabilities

     (601
  

 

 

 

Total current liabilities

     (5,490

Other long-term liabilities (1) 

     (10,592
  

 

 

 
   $ 148,953   
  

 

 

 

 

(1) 

Primarily includes long-term deferred tax liabilities.

The following table presents the Company’s purchased intangibles assets as of August 20, 2012, the acquisition date (in thousands):

 

     Amount
Assigned
     Weighted
Average
Amortization
Period (years)
 

Customer relationships

   $ 46,000         8   

Trade names

     10,600         8   

Non-compete agreements

     670         2   

Favorable lease agreement

     450         2   
  

 

 

    
   $ 57,720         8   
  

 

 

    

The amount of Alpine’s revenues and net loss since the August 20, 2012 acquisition date, included in the Company’s accompanying Consolidated Statement of Operations for the year ended December 31, 2012 was as follows (in thousands):

 

     From
August 20,
2012 Through
December 31,
2012
 

Revenues

   $ 40,635   

(Loss) from continuing operations before income taxes

   $ (3,201

(Loss) from continuing operations, net of taxes

   $ (2,166

The following table presents the unaudited pro forma combined revenues and net earnings as if Alpine had been included in the consolidated results of the Company for the entire year for the year ended December 31, 2012. The pro forma financial information is not indicative of the results of operations that would have been achieved if the acquisition and related borrowings had taken place on January 1, 2012 (in thousands):

 

     Year Ended
December 31, 2012
 

Revenues

   $ 1,190,150   

Income from continuing operations, net of taxes

   $ 37,352   

Income from continuing operations per common share:

  

Basic

   $ 0.87   

Diluted

   $ 0.87   

Merger and integration costs associated with Alpine were as follows (none in 2014) (in thousands):

 

     Years Ended December 31,  
     2013      2012  

Severance costs included in “Direct salaries and related costs”: (1)

     

Americas

   $ 526       $ —     
  

 

 

    

 

 

 
     526         —     

Severance costs included in “General and administrative”: (1)

     

Americas

     985         591   

Corporate

     159         377   
  

 

 

    

 

 

 
     1,144         968   

Transaction and integration costs included in “General and administrative”: (1)

     

Corporate

     444         3,793   
  

 

 

    

 

 

 
     444         3,793   
  

 

 

    

 

 

 

Total merger and integration costs

   $ 2,114       $ 4,761   
  

 

 

    

 

 

 

 

(1)

In the accompanying Consolidated Statements of Operations.

Discontinued Operations (Tables)
Results of Discontinued Operations, Consist of Operations in Spain and Argentina

The results of discontinued operations were as follows (none in 2014 and 2013) (in thousands):

 

     Year Ended
December 31,  2012
 

Revenues

   $ 10,102   
  

 

 

 

(Loss) from discontinued operations before income taxes

   $ (820

Income taxes (1) 

     —     
  

 

 

 

(Loss) from discontinued operations, net of taxes

   $ (820
  

 

 

 

(Loss) on sale of discontinued operations before income taxes

   $ (10,707

Income taxes (1) 

     —     
  

 

 

 

(Loss) on sale of discontinued operations, net of taxes

   $ (10,707
  

 

 

 

 

(1)

There were no income taxes as any tax benefit from the losses would be offset by a valuation allowance.

Costs Associated with Exit or Disposal Activities (Tables)

The cumulative costs expected and incurred as a result of the Exit Plans were as follows as of December 31, 2014 (in thousands):

 

     Americas
Fourth
Quarter 2011
Exit Plan
     EMEA
Fourth
Quarter 2011
Exit Plan
     EMEA
Fourth
Quarter 2010
Exit Plan
     Americas
Third
Quarter 2010
Exit Plan
     Total  

Lease obligations and facility exit costs

   $ 1,365       $ 19       $ 1,914       $ 6,729       $ 10,027   

Severance and related costs

     —           5,857         185         —           6,042   

Legal-related costs

     —           110         —           —           110   

Non-cash impairment charges

     480         474         159         3,847         4,960   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,845       $ 6,460       $ 2,258       $ 10,576       $ 21,139   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Restructuring charges in the Company’s Consolidated Statements of Operations are summarized as follows (in thousands):

 

     Years Ended December 31,  
     2014     2013     2012  

By Type:

      

Lease obligations and facility exit costs

   $ (185   $ 318      $ 858   

Severance and related costs

     (129     (56     857   

Legal-related costs

     —          —          89   
  

 

 

   

 

 

   

 

 

 

Total

   $ (314   $ 262      $ 1,804   
  

 

 

   

 

 

   

 

 

 
     Years Ended December 31,  
     2014     2013     2012  

By Statements of Operations Caption:

      

Direct salaries and related costs

   $ —        $ —        $ 715   

General and administrative

     (314     262        1,089   
  

 

 

   

 

 

   

 

 

 

Total

   $ (314   $ 262      $ 1,804   
  

 

 

   

 

 

   

 

 

 
     Years Ended December 31,  
     2014     2013     2012  

By Segment:

      

Americas

   $ —        $ —        $ 1,426   

EMEA

     (314     262        378   
  

 

 

   

 

 

   

 

 

 

Total

   $ (314   $ 262      $ 1,804   
  

 

 

   

 

 

   

 

 

 

The following table summarizes the accrued liability associated with the Exit Plans’ exit or disposal activities and related charges for the years ended December 31, 2014, 2013 and 2012 (in thousands):

 

     Lease Obligation
and Facility Exit
Costs
    Severance and
Related Costs
    Legal-Related
Costs
    Total  

Balance at January 1, 2012

   $ 4,839      $ 4,470      $ 13      $ 9,322   

Charges (reversals) (1) 

     858        857        89        1,804   

Cash payments

     (1,926     (5,134     (91     (7,151

Other non-cash changes (4)

     1        (6     (1     (6
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2012

     3,772        187        10        3,969   

Charges (reversals) (2) 

     318        (56     —          262   

Cash payments

     (1,264     (8     (10     (1,282

Other non-cash changes (4)

     17        8        —          25   
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2013

     2,843        131        —          2,974   

Charges (reversals) (3) 

     (185     (129     —          (314

Cash payments

     (1,095     —          —          (1,095

Other non-cash changes (4)

     (5     (2     —          (7
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2014

   $ 1,558      $ —        $ —        $ 1,558   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

During 2012, the Company recorded lease obligations and facility exit costs due to the initiation of one of the Exit Plans, recorded additional severance and related costs and legal-related costs due to a change in estimates and recorded additional lease obligations due to an unanticipated lease termination penalty, all of which were included in “General and administrative” costs in the accompanying Consolidated Statement of Operations. Also, during 2012, the Company reversed accruals related to the final settlement of lease obligations and facility exit costs for one of the Ireland sites, which reduced “General and administrative” costs in the accompanying Consolidated Statement of Operations.

 

(2)

During 2013, the Company recorded additional lease obligations and facility exit costs for one of the Ireland site’s lease restoration. Also during 2013, the Company reversed accruals related to the final settlement of severance and related costs for the Netherlands site, which reduced “General and administrative” costs in the accompanying Consolidated Statement of Operations.

 

(3)

During 2014, the Company reversed accruals related to the final settlement of lease obligations and facility exit costs as well as severance and related costs for the Ireland sites, which reduced “General and administrative” costs in the accompanying Consolidated Statement of Operations.

 

(4)

Effect of foreign currency translation.

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with its exit and disposal activities, by plan, as of December 31, 2014 and 2013 (in thousands):

 

    Americas
Fourth
Quarter 2011
Exit Plan
    EMEA
Fourth
Quarter 2011
Exit Plan
    EMEA
Fourth
Quarter 2010
Exit Plan
    Americas
Third
Quarter
2010 Exit
Plan
    Total  

December 31, 2014

         

Short-term accrued restructuring liability (1)

  $ 109      $ —        $ —        $ 521      $ 630   

Long-term accrued restructuring liability (2)

    203        —          —          725        928   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending accrual at December 31, 2014

  $ 312      $ —        $ —        $ 1,246      $ 1,558   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

December 31, 2013

         

Short-term accrued restructuring liability (1)

  $ 136      $ 131      $ 538      $ 440      $ 1,245   

Long-term accrued restructuring liability (2)

    376        —          —          1,353        1,729   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending accrual at December 31, 2013

  $ 512      $ 131      $ 538      $ 1,793      $ 2,974   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

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

 

(2) 

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

Fair Value (Tables)

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

 

          Fair Value Measurements at December 31, 2014 Using:  
    Balance at     Quoted Prices
in  Active
Markets For
Identical Assets
    Significant
Other
Observable
Inputs
    Significant
Unobservable
Inputs
 
    December 31, 2014     Level (1)     Level (2)     Level (3)  

Assets:

       

Money market funds and open-end mutual funds included in “Cash and cash equivalents” (1)

  $ 100,915      $ 100,915      $ —        $ —     

Money market funds and open-end mutual funds included in “Deferred charges and other assets” (1)

    10        10        —          —     

Foreign currency forward and option contracts included in “Other current assets” (2)

    1,489        —          1,489        —     

Foreign currency forward contracts included in “Deferred charges and other assets” (2)

    4,060        —          4,060        —     

Equity investments held in a rabbi trust for the Deferred Compensation Plan (3)

    5,589        5,589        —          —     

Debt investments held in a rabbi trust for the Deferred Compensation Plan (3)

    1,363        1,363        —          —     

Guaranteed investment certificates (4)

    79        —          79        —     
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 113,505      $ 107,877      $ 5,628      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities:

       

Long-term debt (5)

  $ 75,000      $ —        $ 75,000      $ —     

Foreign currency forward and option contracts included in “Other accrued expenses and current liabilities” (2)

    1,261        —          1,261        —     
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 76,261      $ —        $ 76,261      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

 

 

          Fair Value Measurements at December 31, 2013 Using:  
    Balance at     Quoted Prices
in  Active
Markets For
Identical Assets
    Significant
Other
Observable
Inputs
    Significant
Unobservable
Inputs
 
    December 31, 2013     Level (1)     Level (2)     Level (3)  

Assets:

       

Money market funds and open-end mutual funds included in “Cash and cash equivalents” (1)

  $ 50,627      $ 50,627      $ —        $ —     

Money market funds and open-end mutual funds included in “Deferred charges and other assets” (1)

    11        11        —          —     

Foreign currency forward and option contracts included in “Other current assets” (2)

    2,240        —          2,240        —     

Equity investments held in a rabbi trust for the Deferred Compensation Plan (3)

    5,251        5,251        —          —     

Debt investments held in a rabbi trust for the Deferred Compensation Plan (3)

    1,170        1,170        —          —     

Guaranteed investment certificates (4)

    80        —          80        —     
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 59,379      $ 57,059      $ 2,320      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities:

       

Long-term debt (5)

  $ 98,000      $ —        $ 98,000      $ —     

Foreign currency forward and option contracts included in “Other accrued expenses and current liabilities” (2)

    5,063        —          5,063        —     
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 103,063      $ —        $ 103,063      $ —     
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

In the accompanying Consolidated Balance Sheet.

 

(2) 

In the accompanying Consolidated Balance Sheet. See Note 12, Financial Derivatives.

 

(3) 

Included in “Other current assets” in the accompanying Consolidated Balance Sheet. See Note 13, Investments Held in Rabbi Trust.

 

(4) 

Included in “Deferred charges and other assets” in the accompanying Consolidated Balance Sheet.

 

(5) 

The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 20, Borrowings.

 

 

The table below summarizes impairment losses resulting from nonrecurring fair value measurements of certain assets (no liabilities), primarily long-lived assets that the Company determined were no longer being used and were disposed of, as follows (in thousands):

 

      Total Impairment (Loss)  
     Years Ended December 31,  
     2014     2013      2012  

Americas:

       

Property and equipment, net (1)

   $ (89   $  —         $ (355

EMEA:

       

Property and equipment, net (1)

     —          —           —     
  

 

 

   

 

 

    

 

 

 
   $ (89   $ —         $ (355
  

 

 

   

 

 

    

 

 

 

 

(1)

See Note 1, Overview and Summary of Significant Accounting Policies, for additional information regarding the fair value measurement as outlined in Property and Equipment.

Goodwill and Intangible Assets (Tables)

The following table presents the Company’s purchased intangible assets as of December 31, 2014 (in thousands):

 

     Gross Intangibles      Accumulated
Amortization
    Net Intangibles      Weighted  Average
Amortization
Period (years)
 

Customer relationships

   $ 100,719       $ (47,571   $ 53,148         8   

Trade name

     11,600         (4,128     7,472         8   

Non-compete agreements

     1,209         (1,209     —           2   

Proprietary software

     850         (850     —           2   

Favorable lease agreement

     449         (449     —           2   
  

 

 

    

 

 

   

 

 

    
   $ 114,827       $ (54,207   $ 60,620         8   
  

 

 

    

 

 

   

 

 

    

The following table presents the Company’s purchased intangible assets as of December 31, 2013 (in thousands):

 

     Gross Intangibles      Accumulated
Amortization
    Net Intangibles      Weighted  Average
Amortization
Period (years)
 

Customer relationships

   $ 102,774       $ (35,873   $ 66,901         8   

Trade name

     11,600         (2,803     8,797         8   

Non-compete agreements

     1,220         (1,009     211         2   

Proprietary software

     850         (847     3         2   

Favorable lease agreement

     449         (306     143         2   
  

 

 

    

 

 

   

 

 

    
   $ 116,893       $ (40,838   $ 76,055         8   
  

 

 

    

 

 

   

 

 

    

 

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to December 31, 2014, is as follows (in thousands):

 

Years Ending December 31,

   Amount  

2015

     13,884   

2016

     13,884   

2017

     13,884   

2018

     7,565   

2019

     6,961   

2020 and thereafter

     4,442   

Changes in goodwill for the year ended December 31, 2014 consist of the following (in thousands):

 

     January 1, 2014      Acquisitions      Impairments      Effect of Foreign
Currency
    December 31,
2014
 

Americas

   $ 199,802       $ —         $ —         $ (5,971   $ 193,831   

EMEA

     —           —           —           —          —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
   $ 199,802       $ —         $ —         $ (5,971   $ 193,831   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Changes in goodwill for the year ended December 31, 2013 consist of the following (in thousands):

 

     January 1, 2013      Acquisitions      Impairments      Effect of Foreign
Currency
    December 31,
2013
 

Americas

   $ 204,231       $ —         $ —         $ (4,429   $ 199,802   

EMEA

     —           —           —           —          —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
   $ 204,231       $ —         $ —         $ (4,429   $ 199,802   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Receivables, Net (Tables)
Receivables, Net

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

 

     December 31,  
     2014     2013  

Trade accounts receivable

   $  290,711      $ 266,048   

Income taxes receivable

     993        1,377   

Other

     3,354        2,478   
  

 

 

   

 

 

 
     295,058        269,903   

Less: Allowance for doubtful accounts

     4,661        4,987   
  

 

 

   

 

 

 
   $ 290,397      $ 264,916   
  

 

 

   

 

 

 

Allowance for doubtful accounts as a percent of trade receivables

     1.6     1.9
  

 

 

   

 

 

 
Prepaid Expenses (Tables)
Prepaid Expenses, Net

Prepaid expenses consist of the following (in thousands):

 

     December 31,  
     2014      2013  

Prepaid maintenance

   $ 5,315       $ 5,852   

Prepaid rent

     3,147         3,009   

Prepaid insurance

     3,112         2,631   

Prepaid other

     3,322         4,218   
  

 

 

    

 

 

 
   $ 14,896       $ 15,710   
  

 

 

    

 

 

 
Other Current Assets (Tables)
Other Current Assets, Net

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

 

     December 31,  
     2014      2013  

Deferred tax assets (Note 22)

   $ 13,703       $ 7,961   

Financial derivatives (Note 12)

     1,489         2,240   

Investments held in rabbi trust (Note 13)

     6,952         6,421   

Value added tax certificates (Note 11)

     6,303         2,066   

Other current assets

     1,209         1,984   
  

 

 

    

 

 

 
   $ 29,656       $ 20,672   
  

 

 

    

 

 

 
Value Added Tax Receivables (Tables)

The VAT receivables balances, and the respective locations in the accompanying Consolidated Balance Sheets, are presented below (in thousands):

 

     December 31,  
     2014      2013  

VAT included in:

     

Other current assets (Note 10)

   $ 6,303       $ 2,066   

Deferred charges and other assets (Note 15)

     856         5,406   
  

 

 

    

 

 

 
   $ 7,159       $ 7,472   
  

 

 

    

 

 

 

During the years ended December 31, 2014, 2013 and 2012, the Company wrote down the VAT receivables balances by the following amounts, which are reflected in the accompanying Consolidated Statements of Operations (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Write-downs (recoveries) of value added tax receivables

   $ (638 )     $ 143       $ 546   
  

 

 

    

 

 

    

 

 

 
Financial Derivatives (Tables)

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

 

      December 31,  
     2014     2013  

Deferred gains (losses) in AOCI

   $ (157   $ (2,704

Tax on deferred gains (losses) in AOCI

     46        169   
  

 

 

   

 

 

 

Deferred gains (losses) in AOCI, net of taxes

   $ (111   $ (2,535
  

 

 

   

 

 

 

Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months

   $ (157  
  

 

 

   

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

 

     As of December 31, 2014      As of December 31, 2013  

Contract Type

   Notional
Amount in
USD
     Settle Through
Date
     Notional
Amount in
USD
     Settle Through
Date
 

Cash flow hedges: (1)

           

Options:

           

Philippine Pesos

   $ 73,000         December 2015       $ 59,000         December 2014   

Forwards:

           

Philippine Pesos

     9,000         March 2015         63,300         July 2014   

Costa Rican Colones

     51,600         October 2015         41,600         October 2014   

Hungarian Forints

     —          
—  
  
     550         January 2014   

Romanian Leis

     10,414         December 2015         619         January 2014   

Net investment hedges: (2)

           

Forwards:

           

Euros

     51,648         March 2016         32,657         September 2014   

Non-designated hedges: (3)

           

Forwards

     64,541         March 2015         59,207         June 2014   

 

(1) 

Cash flow hedge as defined under ASC 815. Purpose is to protect against the risk that eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates.

 

(2) 

Net investment hedge as defined under ASC 815. Purpose is to protect against the risk that the net assets of certain of our international subsidiaries will be adversely affected by changes in exchange rates and economic exposures related to our foreign currency-based investments in these subsidiaries.

 

(3) 

Foreign currency hedge contract not designated as a hedge as defined under ASC 815. Purpose is to reduce the effects on the Company’s operating results and cash flows from fluctuations caused by volatility in currency exchange rates, primarily related to intercompany loan payments and cash held in non-functional currencies. See Note 1, Overview and Summary of Significant Accounting Policies, for additional information on the Company’s purpose for entering into derivatives not designated as hedging instruments and its overall risk management strategies.

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

 

    Derivative Assets  
    December 31, 2014     December 31, 2013  
    Fair Value     Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

   

Foreign currency forward and option contracts (1) 

  $ 974      $ 862   

Derivatives designated as net investment hedging instruments under ASC 815:

   

Foreign currency forward contracts (2)

    4,060        —     
 

 

 

   

 

 

 
    5,034        862   

Derivatives not designated as hedging instruments under ASC 815:

   

Foreign currency forward contracts (1)

    515        1,378   
 

 

 

   

 

 

 

Total derivative assets

  $ 5,549      $ 2,240   
 

 

 

   

 

 

 

 

    Derivative Liabilities  
    December 31, 2014     December 31, 2013  
    Fair Value     Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

   

Foreign currency forward and option contracts (3) 

  $ 406      $ 2,997   

Derivatives designated as net investment hedging instruments under ASC 815:

   

Foreign currency forward contracts (3)

    —          1,720   
 

 

 

   

 

 

 
    406        4,717   

Derivatives not designated as hedging instruments under ASC 815:

   

Foreign currency forward contracts (3)

    855        346   
 

 

 

   

 

 

 

Total derivative liabilities

  $ 1,261      $ 5,063   
 

 

 

   

 

 

 

 

(1)

Included in “Other current assets” in the accompanying Consolidated Balance Sheets.

 

(2)

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

 

(3)

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

The following tables present the effect of the Company’s derivative instruments included in the accompanying Consolidated Financial Statements for the years ended December 31, 2014, 2013 and 2012 (in thousands):

 

    Gain (Loss)
Recognized  in AOCI
on Derivatives
(Effective Portion)
    Gain (Loss)
Reclassified  From Accumulated
AOCI Into “Revenues”

(Effective Portion)
    Gain (Loss)
Recognized  in “Revenues”
on Derivatives
(Ineffective Portion)
 
    December 31,     December 31,     December 31,  
    2014     2013     2012     2014     2013     2012     2014     2013     2012  

Derivatives designated as cash flow hedging instruments under ASC 815:

                 

Foreign currency forward and option contracts

  $ (2,787   $ (2,823   $ 4,400      $ (5,339   $ (666   $ 4,156      $ (3   $ 119      $ 17   

Derivatives designated as net investment hedging instruments under ASC 815:

                 

Foreign currency forward contracts

    6,344        (1,720     —          —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Foreign currency forward and option contracts

  $ 3,557      $ (4,543   $ 4,400      $ (5,339 )    $ (666   $ 4,156      $ (3 )    $ 119      $ 17   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Gain (Loss) Recognized in
“Other income and (expense)”
on Derivatives
 
     December 31,  
     2014     2013      2012  

Derivatives not designated as hedging instruments under ASC 815:

       

Foreign currency forward contracts

   $ (44 )    $ 4,216       $ (295
  

 

 

   

 

 

    

 

 

 

Investments Held in Rabbi Trust (Tables)

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

 

     December 31, 2014      December 31, 2013  
     Cost      Fair Value      Cost      Fair Value  

Mutual funds

   $ 5,160       $ 6,952       $ 4,749       $ 6,421   
  

 

 

    

 

 

    

 

 

    

 

 

 

The mutual funds held in the rabbi trust were 80% equity-based and 20% debt-based as of December 31, 2014. Net investment income (losses), included in “Other income (expense)” in the accompanying Consolidated Statements of Operations consists of the following (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Gross realized gains from sale of trading securities

   $ 586       $ 160       $ 163   

Gross realized (losses) from sale of trading securities

     —           (10      (1

Dividend and interest income

     58         279         129   

Net unrealized holding gains (losses)

     (276      568         312   
  

 

 

    

 

 

    

 

 

 

Net investment income (losses)

   $ 368       $ 997       $ 603   
  

 

 

    

 

 

    

 

 

 
Property and Equipment (Tables)

Property and equipment consist of the following (in thousands):

 

     December 31,  
     2014      2013  

Land

   $ 3,600       $ 4,144   

Buildings and leasehold improvements

     94,786         92,652   

Equipment, furniture and fixtures

     293,857         287,728   

Capitalized internally developed software costs

     7,963         7,752   

Transportation equipment

     531         624   

Construction in progress

     8,071         1,909   
  

 

 

    

 

 

 
     408,808         394,809   

Less: Accumulated depreciation

     298,928         277,260   
  

 

 

    

 

 

 
   $ 109,880       $ 117,549   
  

 

 

    

 

 

 

Capitalized internally developed software, net of depreciation, included in “Property and equipment, net” in the accompanying Consolidated Balance Sheets as of December 31, 2014 and 2013 was as follows (in thousands):

 

     December 31,  
     2014      2013  

Capitalized internally developed software costs, net

   $   1,270       $   2,599   
  

 

 

    

 

 

 

Deferred Charges and Other Assets (Tables)
Components of Deferred Charges and Other Assets

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

 

     December 31,  
     2014      2013  

Non-current deferred tax assets (Note 22)

   $ 1,681       $ 13,048   

Non-current mandatory tax security deposits (Note 22)

     15,906         17,317   

Non-current value added tax certificates (Note 11)

     856         5,406   

Foreign currency forward contracts (Note 12)

     4,060         —     

Rent and other deposits

     3,215         3,169   

Other

     4,365         4,632   
  

 

 

    

 

 

 
   $ 30,083       $ 43,572   
  

 

 

    

 

 

 
Accrued Employee Compensation and Benefits (Tables)
Components of Accrued Employee Compensation and Benefits

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

 

     December 31,  
     2014      2013  

Accrued compensation

   $ 32,786       $ 32,003   

Accrued bonus and commissions

     18,590         14,265   

Accrued vacation

     16,613         17,055   

Accrued employment taxes

     9,362         12,448   

Other

     4,721         5,293   
  

 

 

    

 

 

 
   $ 82,072       $ 81,064   
  

 

 

    

 

 

 

Deferred Revenue (Tables)
Components of Deferred Revenue

The components of deferred revenue consist of the following (in thousands):

 

     December 31,  
     2014      2013  

Future service

   $ 25,222       $ 25,102   

Estimated potential penalties and holdbacks

     9,023         9,923   
  

 

 

    

 

 

 
   $ 34,245       $ 35,025   
  

 

 

    

 

 

 

Other Accrued Expenses and Current Liabilities (Tables)
Other Accrued Expenses and Current Liabilities

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

 

     December 31,  
     2014      2013  

Accrued legal and professional fees

   $ 4,508       $ 3,220   

Accrued equipment and software

     2,196         1,779   

Accrued roadside assistance claim costs

     1,878         2,341   

Accrued utilities

     1,329         1,425   

Foreign currency forward and option contracts (Note 12)

     1,261         5,063   

Accrued telephone charges

     1,068         1,475   

Customer deposits

     793         2,418   

Accrued rent

     640         2,057   

Accrued restructuring (Note 4)

     630         1,245   

Other

     7,913         9,370   
  

 

 

    

 

 

 
   $ 22,216       $ 30,393   
  

 

 

    

 

 

 
Deferred Grants (Tables)
Schedule of Deferred Grants, Net of Accumulated Amortization

The components of deferred grants consist of the following (in thousands):

 

     December 31,  
     2014     2013  

Property grants

   $ 5,110      $ 6,643   

Employment grants

     207        146   
  

 

 

   

 

 

 

Total deferred grants

     5,317        6,789   

Less: Property grants — short-term (1)

     —          (6

Less: Employment grants — short-term (1)

     (207     (146
  

 

 

   

 

 

 

Total long-term deferred grants (2)

   $ 5,110      $ 6,637   
  

 

 

   

 

 

 

 

(1) 

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

 

(2) 

Included in “Deferred grants” in the accompanying Consolidated Balance Sheets.

Borrowings (Tables)
Components of Borrowings

Borrowings consist of the following (in thousands):

 

     December 31,  
     2014      2013  

Revolving credit facility

   $ 75,000       $ 98,000   

Less: Current portion

     —           —     
  

 

 

    

 

 

 

Total long-term debt

   $ 75,000       $ 98,000   
  

 

 

    

 

 

 
Accumulated Other Comprehensive Income (Loss) (Tables)

The Company presents data in the Consolidated Statements of Changes in Shareholders’ Equity in accordance with ASC 220 “Comprehensive Income” (“ASC 220”). ASC 220 establishes rules for the reporting of comprehensive income (loss) and its components. The components of accumulated other comprehensive income (loss) consist of the following (in thousands):

 

     Foreign
Currency
Translation
Gain (Loss)
    Unrealized Gain
(Loss) on  Net
Investment
Hedges
    Unrealized
Actuarial  Gain
(Loss) Related
to Pension
Liability
    Unrealized
Gain (Loss)  on
Cash Flow
Hedging
Instruments
    Unrealized
Gain (Loss)  on
Post
Retirement
Obligation
    Total  

Balance at January 1, 2012

   $ 5,995      $ (2,565   $ 985      $ (438   $ 459      $ 4,436   

Pre-tax amount

     9,516        —          499        4,417        92        14,524   

Tax (provision) benefit

     —          —          (90     (306     —          (396

Reclassification of (gain) loss to net income

     570        —          (48     (4,174     (56     (3,708

Foreign currency translation

     2        —          67        (69     —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2012

     16,083        (2,565     1,413        (570     495        14,856   

Pre-tax amount

     (3,465     (1,720     (136     (2,704     (127     (8,152

Tax (provision) benefit

     —          602        16        449        —          1,067   

Reclassification of (gain) loss to net income

     —          —          (41     321        (54     226   

Foreign currency translation

     133        —          (102     (31     —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2013

     12,751        (3,683     1,150        (2,535     314        7,997   

Pre-tax amount

     (34,947     6,344        (50     (2,790     77        (31,366

Tax (provision) benefit

     —          (2,385     57        (17     —          (2,345

Reclassification of (gain) loss to net income

     —          —          (35     5,237        (49     5,153   

Foreign currency translation

     120        —          (114     (6     —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2014

   $ (22,076   $ 276      $ 1,008      $ (111   $ 342      $ (20,561
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

 

     Years Ended December 31,    

Statements of Operations Location

     2014     2013      

Actuarial Gain (Loss) Related to Pension Liability: (1)

      

Pre-tax amount

   $ 50      $ 60      Direct salaries and related costs

Tax (provision) benefit

     (15     (19   Income taxes
  

 

 

   

 

 

   

Reclassification to net income

     35        41     

Gain (Loss) on Cash Flow Hedging Instruments: (2)

      

Pre-tax amount

     (5,342     (547   Revenues

Tax (provision) benefit

     105        226      Income taxes
  

 

 

   

 

 

   

Reclassification to net income

     (5,237     (321  

Gain (Loss) on Post Retirement Obligation: (1)

      

Pre-tax amount

     49        54      General and administrative

Tax (provision) benefit

     —          —        Income taxes
  

 

 

   

 

 

   

Reclassification to net income

     49        54     
  

 

 

   

 

 

   

Total reclassification of gain (loss) to net income

   $ (5,153 )    $ (226  
  

 

 

   

 

 

   

 

(1) 

See Note 25, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

 

(2)

See Note 12, Financial Derivatives, for further information.

Income Taxes (Tables)

The income from continuing operations before income taxes includes the following components (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Domestic (U.S., state and local)

   $ 28,563       $ 5,544       $ (10,430

Foreign

     48,596         45,781         55,587   
  

 

 

    

 

 

    

 

 

 

Total income from continuing operations before income taxes

   $ 77,159       $ 51,325       $ 45,157   
  

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2014      2013      2012  

Current:

        

U.S. federal

   $ 2,579       $ 881       $ 236   

State and local

     542         82         (61

Foreign

     11,382         13,464         9,899   
  

 

 

    

 

 

    

 

 

 

Total current provision for income taxes

     14,503         14,427         10,074   
  

 

 

    

 

 

    

 

 

 

Deferred:

        

U.S. federal

     5,437         866         (2,846

State and local

     (446      —           —     

Foreign

     (126      (1,228      (2,021
  

 

 

    

 

 

    

 

 

 

Total deferred provision (benefit) for income taxes

     4,865         (362      (4,867
  

 

 

    

 

 

    

 

 

 

Total provision for income taxes

   $ 19,368       $ 14,065       $ 5,207   
  

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2014      2013      2012  

Net operating loss and tax credit carryforwards

   $ 19,335       $ 8,029       $ (4,113

Depreciation and amortization

     (6,220      (5,030      (5,684

Accrued expenses/liabilities

     (4,505      954         (1,274

Valuation allowance

     (3,706      (1,887      4,120   

Deferred statutory income

     (29      (2,425      2,084   

Other

     (10      (3      —     
  

 

 

    

 

 

    

 

 

 

Total deferred provision (benefit) for income taxes

   $ 4,865       $ (362    $ (4,867
  

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2014      2013      2012  

Tax at U.S. federal statutory tax rate

   $ 27,005       $ 17,964       $ 15,805   

State income taxes, net of federal tax benefit

     934         82         (61

Foreign rate differential

     (13,164      (9,319      (7,078

Tax holidays

     (2,749      (4,686      (6,450

Permanent differences

     10,170         9,051         3,531   

Tax credits

     (4,894      (5,020      (699

Foreign withholding and other taxes

     2,541         4,643         1,263   

Change in valuation allowance, net of related adjustments

     (7      1,354         (538

Changes in uncertain tax positions

     (468      (4      (613

Change of assertion related to foreign earnings distribution

     —           —           47   
  

 

 

    

 

 

    

 

 

 

Total provision for income taxes

   $ 19,368       $ 14,065       $ 5,207   
  

 

 

    

 

 

    

 

 

 

The temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands):

 

     December 31,  
     2014     2013  

Deferred tax assets:

    

Net operating loss and tax credit carryforwards

   $ 35,400      $ 61,626   

Valuation allowance

     (34,146     (42,664

Accrued expenses

     25,694        21,305   

Deferred revenue

     3,757        4,045   

Depreciation and amortization

     835        559   

Other

     —          104   
  

 

 

   

 

 

 
     31,540        44,975   
  

 

 

   

 

 

 

Deferred tax liabilities:

    

Depreciation and amortization

     (20,172     (26,379

Deferred statutory income

     (772     (241

Accrued liabilities

     (141     (79

Other

     (1     (114
  

 

 

   

 

 

 
     (21,086     (26,813
  

 

 

   

 

 

 

Net deferred tax assets

   $ 10,454      $ 18,162   
  

 

 

   

 

 

 
December 31,  
     2014      2013  

Classified as follows:

     

Other current assets (Note 10)

   $ 13,703       $ 7,961   

Other long-term liabilities

     (4,786      (2,763

Deferred charges and other assets (Note 15)

     1,681         13,048   

Current deferred income tax liabilities

     (144      (84
  

 

 

    

 

 

 

Net deferred tax assets

   $ 10,454       $ 18,162   
  

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2014      2013      2012  

Gross unrecognized tax benefits as of January 1,

   $ 14,991       $ 16,897       $ 17,136   

Prior period tax position increases (decreases) (1)

     —           —           321   

Decreases from settlements with tax authorities

     —           —           (426

Decreases due to lapse in applicable statute of limitations

     —           (390      (561

Foreign currency translation increases (decreases)

     (1,706      (1,516      427   
  

 

 

    

 

 

    

 

 

 

Gross unrecognized tax benefits as of December 31,

   $ 13,285       $ 14,991       $ 16,897   
  

 

 

    

 

 

    

 

 

 

 

(1)

Includes amounts assumed upon acquisition of Alpine on August 20, 2012.

The significant tax jurisdictions currently under audit are as follows:

 

Tax Jurisdiction

  

Tax Year Ended

Canada

   2003 to 2009

The Philippines

   2009 and 2010

The following table presents the major tax jurisdictions and tax years that are open and subject to examination by the respective tax authorities as of December 31, 2014:

 

Tax Jurisdiction

  

Tax Year Ended

Canada

   2003 to present

The Philippines

   2009 to present

United States

   2002 to 2010 (1) and 2011 to present

 

(1)

These tax years are open to the extent of the net operating loss and tax credit carryforward amounts.

Earnings Per Share (Tables)

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

 

     Years Ended December 31,  
     2014      2013      2012  

Basic:

        

Weighted average common shares outstanding

     42,609         42,877         43,105   

Diluted:

        

Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in a rabbi trust

     205         48         43   
  

 

 

    

 

 

    

 

 

 

Total weighted average diluted shares outstanding

     42,814         42,925         43,148   
  

 

 

    

 

 

    

 

 

 

Anti-dilutive shares excluded from the diluted earnings per share calculation

     37         42         —     
  

 

 

    

 

 

    

 

 

 

The shares repurchased under the Company’s share repurchase programs were as follows (in thousands, except per share amounts):

 

     Total Number                    Total Cost of  
     of Shares      Range of Prices Paid Per Share      Shares  

For the Years Ended

   Repurchased      Low      High      Repurchased  

December 31, 2014

     630       $ 19.80       $ 20.00       $ 12,581   

December 31, 2013

     341       $ 15.61       $ 16.99       $ 5,479   

December 31, 2012

     537       $ 13.85       $ 15.00       $ 7,908   
Commitments and Loss Contingency (Tables)

Rental expense under operating leases was as follows (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Rental expense

   $ 44,916       $ 47,365       $ 43,626   
  

 

 

    

 

 

    

 

 

The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of December 31, 2014 (in thousands):

 

     Amount  

2015

   $ 33,287   

2016

     24,907   

2017

     21,586   

2018

     20,325   

2019

     15,617   

2020 and thereafter

     35,801   
  

 

 

 

Total minimum payments required

   $ 151,523   
  

 

 

 

The following is a schedule of future minimum purchases remaining under the agreements as of December 31, 2014 (in thousands):

 

     Amount  

2015

   $ 33,039   

2016

     21,025   

2017

     10,448   

2018

     1,485   

2019

     1,483   

2020 and thereafter

     1,600   
  

 

 

 

Total minimum payments required

   $ 69,080   
  

 

 

Defined Benefit Pension Plan and Postretirement Benefits (Tables)

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

 

     December 31,  
     2014     2013  

Beginning benefit obligation

   $ 2,481      $ 1,997   

Service cost

     387        392   

Interest cost

     104        137   

Actuarial (gains) losses

     50        136   

Effect of foreign currency translation

     78        (181
  

 

 

   

 

 

 

Ending benefit obligation

   $ 3,100      $ 2,481   
  

 

 

   

 

 

 
    

Unfunded status

   $ (3,100   $ (2,481
  

 

 

   

 

 

 

Net amount recognized

   $ (3,100   $ (2,481
  

 

 

   

 

 

 

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

 

     Years Ended December 31,
         2014            2013            2012    

Discount rate

   4.5% - 4.9%    4.3% - 5.2%    5.9%

Rate of compensation increase

   2.0%    2.0%    2.0%

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

 

     Years Ended December 31,  
     2014      2013      2012  

Service cost

   $ 387       $ 392       $ 372   

Interest cost

     104         137         120   

Recognized actuarial (gains)

     (50      (60      (46
  

 

 

    

 

 

    

 

 

 

Net periodic benefit cost

     441         469         446   

Unrealized net actuarial (gains), net of tax

     (1,008      (1,150      (1,413
  

 

 

    

 

 

    

 

 

 

Total amount recognized in net periodic benefit cost and other accumulated comprehensive income (loss)

   $ (567    $ (681    $ (967
  

 

 

    

 

 

    

 

 

 

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

 

Years Ending December 31,

   Amount  

2015

   $ 28   

2016

     133   

2017

     77   

2018

     58   

2019

     303   

2020 - 2024

     963   

participant compensation. The Company’s contributions included in the accompanying Consolidated Statements of Operations were as follows (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

401(k) plan contributions

   $ 870       $ 895       $ 1,221   
  

 

 

    

 

 

    

 

 

 

policy to the extent of the premiums paid by the Company. The postretirement benefit obligation included in “Other long-term liabilities” and the unrealized gains (losses) included in “Accumulated other comprehensive income” in the accompanying Consolidated Balance Sheets were as follows (in thousands):

 

     December 31,  
     2014      2013  

Postretirement benefit obligation

   $ 46       $ 81   

Unrealized gains (losses) in AOCI (1)

     342         314   

 

(1) 

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

Stock-Based Compensation (Tables)

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

 

     Years Ended December 31,  
     2014      2013      2012  

Stock-based compensation (expense) (1)

   $ (6,381    $ (4,873    $ (3,467

Income tax benefit (2)

     2,233         1,706         1,213   

Excess tax benefit (deficiency) from stock-based compensation (3)

     (82      (187      (292

 

(1) 

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

(2) 

Included in “Income taxes” in the accompanying Consolidated Statements of Operations.

(3) 

Included in “Additional paid-in capital” in the accompanying Consolidated Statements of Changes in Shareholders’ Equity .

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

 

     Years Ended December 31,  
     2014     2013     2012  

Expected volatility

     38.9     45.2     47.1

Weighted-average volatility

     38.9     45.2     47.1

Expected dividend rate

     0.0     0.0     0.0

Expected term (in years)

     5.0        5.0        4.7   

Risk-free rate

     1.7     0.8     0.8

The following table summarizes SARs activity as of December 31, 2014 and for the year then ended:

 

Stock Appreciation Rights

   Shares (000s)      Weighted
Average
Exercise Price
     Weighted
Average
Remaining
Contractual
Term (in
years)
     Aggregate
Intrinsic
Value (000s)
 

Outstanding at January 1, 2014

     963       $ —           

Granted

     246       $ —           

Exercised

     (77    $ —           

Forfeited or expired

     (173    $ —           
  

 

 

          

Outstanding at December 31, 2014

     959       $ —           7.0       $ 5,171   
  

 

 

    

 

 

    

 

 

    

 

 

 

Vested or expected to vest at December 31, 2014

     959       $ —           7.0       $ 5,171   
  

 

 

    

 

 

    

 

 

    

 

 

 

Exercisable at December 31, 2014

     548       $ —           5.8       $ 2,700   
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2014      2013      2012  

Number of SARs granted

     246         318         259   

Weighted average grant-date fair value per SAR

   $ 7.20       $ 6.08       $ 5.97   

Intrinsic value of SARs exercised

   $ 391       $ 488       $ —     

Fair value of SARs vested

   $ 1,553       $ 1,298       $ 1,388   

The following table summarizes nonvested SARs activity as of December 31, 2014 and for the year then ended:

 

Nonvested Stock Appreciation Rights

   Shares (000s)      Weighted
Average Grant-
Date Fair
Value
 

Nonvested at January 1, 2014

     535       $ 6.17   

Granted

     246       $ 7.20   

Vested

     (246    $ 6.31   

Forfeited or expired

     (124    $ 6.48   
  

 

 

    

Nonvested at December 31, 2014

     411       $ 6.61   
  

 

 

    

The following table summarizes nonvested restricted shares/RSUs activity as of December 31, 2014 and for the year then ended:

 

Nonvested Restricted Shares and RSUs

   Shares (000s)      Weighted
Average Grant-
Date Fair
Value
 

Nonvested at January 1, 2014

     1,367       $ 15.96   

Granted

     500       $ 19.77   

Vested

     (57    $ 15.67   

Forfeited or expired

     (616    $ 17.45   
  

 

 

    

Nonvested at December 31, 2014

     1,194       $ 16.80   
  

 

 

    

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

 

     Years Ended December 31,  
     2014      2013      2012  

Number of restricted shares/RSUs granted

     500         706         420   

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

   $ 19.77       $ 15.25       $ 15.21   

Fair value of restricted shares/RSUs vested

   $ 895       $ 366       $ 3,845   

The following table summarizes nonvested common stock share award activity as of December 31, 2014 and for the year then ended:

 

Nonvested Common Stock Share Awards

   Shares (000s)      Weighted
Average Grant-
Date Fair
Value
 

Nonvested at January 1, 2014

     9       $ 16.01   

Granted

     36       $ 20.15   

Vested

     (33    $ 18.95   

Forfeited or expired

     —         $ —     
  

 

 

    

Nonvested at December 31, 2014

     12       $ 20.24   
  

 

 

    

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

 

     Years Ended December 31,  
     2014      2013      2012  

Number of share awards granted

     36         37         42   

Weighted average grant-date fair value per share award

   $ 20.15       $ 16.01       $ 16.15   

Fair value of share awards vested

   $ 630       $ 669       $ 771   

The following table summarizes nonvested common stock activity as of December 31, 2014 and for the year then ended:

 

Nonvested Common Stock

   Shares (000s)      Weighted
Average Grant-
Date Fair
Value
 

Nonvested at January 1, 2014

     6       $ 16.89   

Granted

     10       $ 20.54   

Vested

     (10    $ 20.13   

Forfeited or expired

     (1    $ 16.30   
  

 

 

    

Nonvested at December 31, 2014

     5       $ 17.88   
  

 

 

    

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

 

     Years Ended December 31,  
     2014      2013      2012  

Number of shares of common stock granted

     10         13         15   

Weighted average grant-date fair value per common stock

   $ 20.54       $ 16.76       $ 15.27   

Fair value of common stock vested

   $ 212       $ 257       $ 195   

Cash used to settle the obligation

   $ 1,493       $ 1,014       $ 459   
Segments and Geographic Information (Tables)

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

 

     Americas     EMEA     Other (1)     Consolidated  

Year Ended December 31, 2014:

        

Revenues (2)

   $ 1,070,824      $ 256,699        $ 1,327,523   

Percentage of revenues

     80.7     19.3       100.0

Depreciation, net (2)

   $ 40,557      $ 4,806        $ 45,363   

Amortization of intangibles (2)

   $ 14,396      $ —          $ 14,396   

Income (loss) from continuing operations

   $ 113,549      $ 16,208      $ (50,202   $ 79,555   

Other (expense), net

         (2,396     (2,396

Income taxes

         (19,368     (19,368
        

 

 

 

Income from continuing operations, net of taxes

           57,791   

(Loss) from discontinued operations, net of taxes (3)

   $ —        $ —            —     
        

 

 

 

Net income

         $ 57,791   
        

 

 

 

Total assets as of December 31, 2014

   $ 1,080,010      $ 1,373,590      $ (1,509,100   $ 944,500   
  

 

 

   

 

 

   

 

 

   

 

 

 

Year Ended December 31, 2013:

        

Revenues (2) 

   $ 1,050,813      $ 212,647        $ 1,263,460   

Percentage of revenues

     83.2     16.8       100.0

Depreciation, net (2)

   $ 37,818      $ 4,266        $ 42,084   

Amortization of intangibles (2)

   $ 14,863      $ —          $ 14,863   

Income (loss) from continuing operations

   $ 94,006      $ 6,052      $ (46,531   $ 53,527   

Other (expense), net

         (2,202     (2,202

Income taxes

         (14,065     (14,065
        

 

 

 

Income from continuing operations, net of taxes

           37,260   

(Loss) from discontinued operations, net of taxes (3) 

   $ —        $ —            —     
        

 

 

 

Net income

         $ 37,260   
        

 

 

 

Total assets as of December 31, 2013

   $ 1,097,788      $ 1,409,185      $ (1,556,712   $ 950,261   
  

 

 

   

 

 

   

 

 

   

 

 

 

Year Ended December 31, 2012:

        

Revenues (2) 

   $ 947,147      $ 180,551        $ 1,127,698   

Percentage of revenues

     84.0     16.0       100.0

Depreciation, net (2)

   $ 36,494      $ 3,875        $ 40,369   

Amortization of intangibles (2)

   $ 10,479      $ —          $ 10,479   

Income (loss) from continuing operations

   $ 93,580      $ 5,488      $ (51,289   $ 47,779   

Other (expense), net

         (2,622     (2,622

Income taxes

         (5,207     (5,207
        

 

 

 

Income from continuing operations, net of taxes

           39,950   

(Loss) from discontinued operations, net of taxes (3) 

   $ (10,707   $ (820       (11,527
        

 

 

 

Net income

         $ 28,423   
        

 

 

 

Total assets as of December 31, 2012

   $ 1,265,119      $ 1,100,938      $ (1,457,368   $ 908,689   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

Other items (including corporate costs, other income and expense, and income taxes) are shown for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the years ended December 31, 2014, 2013 and 2012. The accounting policies of the reportable segments are the same as those described in Note 1 to the accompanying Consolidated Financial Statements. Inter-segment revenues are not material to the Americas and EMEA segment results. The Company evaluates the performance of its geographic segments based on revenues and income (loss) from continuing operations, and does not include segment assets or other income and expense items for management reporting purposes.

 

(2) 

Revenues, depreciation and amortization include results from continuing operations only.

 

(3) 

Includes both the (loss) from discontinued operations, net of taxes, and the (loss) on sale of discontinued operations, net of taxes, if any.

Information about the Company’s operations by geographic location was as follows (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Revenues: (1)

        

United States

   $ 425,746       $ 388,775       $ 302,046   

The Philippines

     205,332         213,132         225,629   

Canada

     195,739         210,463         198,585   

Costa Rica

     97,295         101,888         100,101   

El Salvador

     52,609         46,301         46,910   

Australia

     33,126         36,725         24,633   

China

     32,167         25,478         21,614   

Mexico

     20,439         23,701         23,315   

Other

     8,371         4,350         4,314   
  

 

 

    

 

 

    

 

 

 

Total Americas

     1,070,824         1,050,813         947,147   
  

 

 

    

 

 

    

 

 

 

Germany

     88,887         77,950         73,380   

Sweden

     68,057         49,953         22,229   

United Kingdom

     42,328         33,750         35,833   

Romania

     18,288         14,856         10,773   

Hungary

     8,723         8,525         7,619   

Netherlands

     3,126         3,073         6,511   

Other

     27,290         24,540         24,206   
  

 

 

    

 

 

    

 

 

 

Total EMEA

     256,699         212,647         180,551   
  

 

 

    

 

 

    

 

 

 
   $ 1,327,523       $ 1,263,460       $ 1,127,698   
  

 

 

    

 

 

    

 

 

 

 

(1)

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

 

     December 31,  
     2014      2013  

Long-Lived Assets: (1)

     

United States

   $ 108,030       $ 120,759   

Canada

     16,257         23,164   

The Philippines

     14,656         17,197   

Costa Rica

     5,625         4,759   

El Salvador

     3,298         2,552   

Australia

     2,923         3,799   

Mexico

     1,575         1,902   

Other

     6,998         6,695   
  

 

 

    

 

 

 

Total Americas

     159,362         180,827   
  

 

 

    

 

 

 

United Kingdom

     3,871         4,158   

Sweden

     2,478         3,676   

Germany

     2,310         2,097   

Romania

     682         679   

Slovakia

     496         666   

Norway

     490         603   

Hungary

     442         564   

Other

     369         334   
  

 

 

    

 

 

 

Total EMEA

     11,138         12,777   
  

 

 

    

 

 

 
   $ 170,500       $ 193,604   
  

 

 

    

 

 

 

 

(1)

Long-lived assets include property and equipment, net, and intangibles, net.

 

Goodwill by segment was as follows (in thousands):

 

     December 31,  
     2014      2013  

Americas

   $ 193,831       $ 199,802   

EMEA

     —           —     
  

 

 

    

 

 

 
   $ 193,831       $ 199,802   
  

 

 

    

 

 

 

Revenues for the Company’s products and services were as follows (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Outsourced customer contract management services

   $ 1,303,607       $ 1,240,328       $ 1,104,442   

Fulfillment services

     18,392         16,953         16,357   

Enterprise support services

     5,524         6,179         6,899   
  

 

 

    

 

 

    

 

 

 
   $ 1,327,523       $ 1,263,460       $ 1,127,698   
  

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2014     2013     2012  
     Amount      % of Revenues     Amount      % of Revenues     Amount      % of Revenues  

Americas

   $ 212,607         19.9   $ 162,888         15.5   $ 130,072         13.7

EMEA

     3,519         1.4     3,513         1.7     3,018         1.7
  

 

 

      

 

 

      

 

 

    
   $ 216,126         16.3   $ 166,401         13.2   $ 133,090         11.8
  

 

 

      

 

 

      

 

 

    

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

 

     Years Ended December 31,  
     2014     2013     2012  
     Amount      % of Revenues     Amount      % of Revenues     Amount      % of Revenues  

Americas

   $ 70,255         6.6   $ 73,226         7.0   $ 70,311         7.4

EMEA

     —           0.0     —           0.0     —           0.0
  

 

 

      

 

 

      

 

 

    
   $ 70,255         5.3   $ 73,226         5.8   $ 70,311         6.2
  

 

 

      

 

 

      

 

 

    
Other Income (Expense) (Tables)
Schedule of Other Income (Expense)

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

 

     Years Ended December 31,  
     2014      2013      2012  

Foreign currency transaction gains (losses)

   $ (1,740    $ (5,962    $ (2,856

Gains (losses) on foreign currency derivative instruments not designated as hedges

     (44      4,216         (295

Gains (losses) on liquidation of foreign subsidiaries

                —           (582

Other miscellaneous income (expense)

     441         985         1,200   
  

 

 

    

 

 

    

 

 

 
   $ (1,343    $ (761    $ (2,533
  

 

 

    

 

 

    

 

 

 
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Segment
CompensationPlan
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
 
 
 
Number of reportable segments
 
 
 
Percentage of total consolidated revenues representing fulfillment services contracts
1.40% 
1.30% 
1.50% 
 
Cash and cash equivalents
$ 215,137 
$ 211,985 
$ 187,322 
$ 211,122 
Interest bearing investments, original maturities
Less than 90 days 
Less than 90 days 
 
 
Tax position measurement
Greater than 50% 
 
 
 
Period over which up-front fees, included within deferred revenue, are earned
12 months 
 
 
 
Number of stock-based compensation plan
 
 
 
Unrecognized tax benefits
13,285 
14,991 
16,897 
17,136 
Deferred Charges and Other Assets [Member]
 
 
 
 
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
 
 
 
Unrecognized tax benefits
2,700 
 
 
 
Reclassification from Long-term Income Tax Liabilities Upon Adoption of ASU 2013-11 [Member] |
Deferred Charges and Other Assets [Member]
 
 
 
 
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
 
 
 
Unrecognized tax benefits
3,100 
 
 
 
Minimum [Member]
 
 
 
 
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
 
 
 
Deferred revenue recognition period
30 days 
 
 
 
Non-deliverable forward contracts and options expiring period
1 month 
 
 
 
Maximum [Member]
 
 
 
 
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
 
 
 
Deferred revenue recognition period
7 years 
 
 
 
Non-deliverable forward contracts and options expiring period
24 months 
 
 
 
Equipment [Member]
 
 
 
 
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
 
 
 
Useful life of equipment
5 years 
 
 
 
International Operations [Member]
 
 
 
 
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
 
 
 
Cash and cash equivalents
$ 194,400 
$ 195,000 
 
 
Alpine Access, Inc [Member] |
Americas [Member]
 
 
 
 
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
 
 
 
Business acquisition date
Aug. 20, 2012 
 
 
 
Acquisition of Alpine Access, Inc - Additional Information (Detail) (USD $)
0 Months Ended 4 Months Ended 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Americas [Member]
Dec. 31, 2013
Americas [Member]
Dec. 31, 2012
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Americas [Member]
Dec. 31, 2012
Alpine Access, Inc [Member]
Americas [Member]
Dec. 31, 2014
Alpine Access, Inc [Member]
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Americas [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
Percentage of common shares and voting rights acquired
 
 
 
 
 
 
 
 
 
100.00% 
Business acquisition date
 
 
 
 
 
 
 
 
Aug. 20, 2012 
 
Fair value of the consideration transferred
 
 
 
 
 
 
 
 
 
$ 148,953,000 
Consideration by cash
 
 
 
 
 
 
41,000,000 
 
 
 
Proceeds from draw down under credit agreement
 
 
 
 
 
 
108,000,000 
 
 
 
Goodwill
193,831,000 
199,802,000 
204,231,000 
193,831,000 
199,802,000 
204,231,000 
 
 
 
80,766,000 
Fair value of receivables purchased
 
 
 
 
 
 
 
 
 
11,831,000 
Gross contractual amount
 
 
 
 
 
 
 
 
 
11,800,000 
(Loss) from continuing operations before income taxes
 
 
 
 
 
 
 
(3,201,000)
 
 
Severance-related costs, depreciation and amortization
 
 
 
 
 
 
 
$ 3,600,000 
 
 
Acquisition of Alpine Access, Inc - Summary of Final Purchase Price Allocation of Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Americas [Member]
Dec. 31, 2013
Americas [Member]
Dec. 31, 2012
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Americas [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
$ 1,859 
Receivables
 
 
 
 
 
 
11,831 
Prepaid expenses
 
 
 
 
 
 
617 
Total current assets
 
 
 
 
 
 
14,307 
Property and equipment
 
 
 
 
 
 
11,326 
Goodwill
193,831 
199,802 
204,231 
193,831 
199,802 
204,231 
80,766 
Intangibles
 
 
 
 
 
 
57,720 
Deferred charges and other assets
 
 
 
 
 
 
916 
Accounts payable
 
 
 
 
 
 
(880)
Accrued employee compensation and benefits
 
 
 
 
 
 
(3,774)
Income taxes payable
 
 
 
 
 
 
(141)
Deferred revenue
 
 
 
 
 
 
(94)
Other accrued expenses and current liabilities
 
 
 
 
 
 
(601)
Total current liabilities
 
 
 
 
 
 
(5,490)
Other long-term liabilities
 
 
 
 
 
 
(10,592)
Purchase price, total
 
 
 
 
 
 
$ 148,953 
Acquisition of Alpine Access, Inc - Summary of Purchased Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Customer Relationships [Member]
Dec. 31, 2013
Customer Relationships [Member]
Dec. 31, 2014
Trade Name [Member]
Dec. 31, 2013
Trade Name [Member]
Dec. 31, 2014
Non-Compete Agreements [Member]
Dec. 31, 2013
Non-Compete Agreements [Member]
Dec. 31, 2014
Favorable Lease Agreement [Member]
Dec. 31, 2013
Favorable Lease Agreement [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Customer Relationships [Member]
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Customer Relationships [Member]
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Trade Name [Member]
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Trade Name [Member]
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Non-Compete Agreements [Member]
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Non-Compete Agreements [Member]
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Favorable Lease Agreement [Member]
Americas [Member]
Aug. 20, 2012
Alpine Access, Inc [Member]
Favorable Lease Agreement [Member]
Americas [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount Assigned
 
 
 
 
 
 
 
 
 
 
 
$ 57,720 
 
$ 46,000 
 
$ 10,600 
 
$ 670 
 
$ 450 
Weighted Average Amortization Period (years)
8 years 
8 years 
8 years 
8 years 
8 years 
8 years 
2 years 
2 years 
2 years 
2 years 
8 years 
 
8 years 
 
8 years 
 
2 years 
 
2 years 
 
Acquisition of Alpine Access, Inc - Revenues and Earnings of Acquired Entity Since Acquisition Date (Detail) (Alpine Access, Inc [Member], Americas [Member], USD $)
In Thousands, unless otherwise specified
4 Months Ended
Dec. 31, 2012
Alpine Access, Inc [Member] |
Americas [Member]
 
Business Acquisition [Line Items]
 
Revenues
$ 40,635 
(Loss) from continuing operations before income taxes
(3,201)
(Loss) from continuing operations, net of taxes
$ (2,166)
Acquisition of Alpine Access, Inc - Combined Pro Forma of Revenues and Net Earnings (Detail) (Alpine Access, Inc [Member], Americas [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Alpine Access, Inc [Member] |
Americas [Member]
 
Business Acquisition [Line Items]
 
Revenues
$ 1,190,150 
Income from continuing operations, net of taxes
$ 37,352 
Income from continuing operations per common share:
 
Basic
$ 0.87 
Diluted
$ 0.87 
Acquisition of Alpine Access, Inc - Merger and Integration Costs (Detail) (Alpine Access, Inc [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Transaction and integration costs:
 
 
Total merger and integration costs
$ 2,114 
$ 4,761 
Direct Salaries and Related Costs [Member]
 
 
Severance costs:
 
 
Severance costs
526 
 
General and Administrative [Member]
 
 
Severance costs:
 
 
Severance costs
1,144 
968 
Transaction and integration costs:
 
 
Transaction and integration costs
444 
3,793 
Americas [Member] |
Direct Salaries and Related Costs [Member]
 
 
Severance costs:
 
 
Severance costs
526 
 
Americas [Member] |
General and Administrative [Member]
 
 
Severance costs:
 
 
Severance costs
985 
591 
Corporate [Member] |
General and Administrative [Member]
 
 
Severance costs:
 
 
Severance costs
159 
377 
Transaction and integration costs:
 
 
Transaction and integration costs
$ 444 
$ 3,793 
Discontinued Operations - Additional Information (Detail) (Spain [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended 12 Months Ended
Mar. 30, 2012
Dec. 31, 2011
Facility
Mar. 30, 2012
Mar. 29, 2012
Spain [Member]
 
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Number of customer contact management centers
 
 
 
FMV of fixed assets sold to buyer
 
 
 
$ 0 
Cash sold to buyer
 
 
4.1 
4.1 
Payroll liabilities assumed by buyer
 
 
 
1.7 
Capital contribution by Company
$ 8.6 
 
 
 
Discontinued Operations - Results of Discontinued Operations (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Discontinued Operations and Disposal Groups [Abstract]
 
Revenues
$ 10,102 
(Loss) from discontinued operations before income taxes
(820)
Income taxes
(Loss) from discontinued operations, net of taxes
(820)
(Loss) on sale of discontinued operations before income taxes
(10,707)
Income taxes
(Loss) on sale of discontinued operations, net of taxes
$ (10,707)
Costs Associated with Exit or Disposal Activities - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2014
Employees
Dec. 31, 2013
Dec. 31, 2012
Restructuring Cost and Reserve [Line Items]
 
 
 
Estimated employee rationalization associated with exit or disposal activities
800 
 
 
Cash payment related to restructuring plan
$ 14,500,000 
 
 
Charges (reversal) of exit or disposal activities and related charges
(314,000)
262,000 
1,804,000 
Lease termination date
Feb. 28, 2017 
 
 
Lease Obligations and Facility Exit Costs [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Charges (reversal) of exit or disposal activities and related charges
(185,000)
318,000 
858,000 
EMEA [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Charges (reversal) of exit or disposal activities and related charges
(314,000)
262,000 
378,000 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member] |
Lease Obligations and Facility Exit Costs [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Charges (reversal) of exit or disposal activities and related charges
 
 
$ (600,000)
Costs Associated with Exit or Disposal Activities - Cumulative Costs Expected and Incurred as a Result of Exit Plans (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
$ 21,139 
Lease Obligations and Facility Exit Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
10,027 
Severance and Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
6,042 
Legal-Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
110 
Non-cash Impairment Charges [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
4,960 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
1,845 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member] |
Lease Obligations and Facility Exit Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
1,365 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member] |
Non-cash Impairment Charges [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
480 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
6,460 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member] |
Lease Obligations and Facility Exit Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
19 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member] |
Severance and Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
5,857 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member] |
Legal-Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
110 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member] |
Non-cash Impairment Charges [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
474 
Fourth Quarter 2010 Exit Plan [Member] |
EMEA [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
2,258 
Fourth Quarter 2010 Exit Plan [Member] |
EMEA [Member] |
Lease Obligations and Facility Exit Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
1,914 
Fourth Quarter 2010 Exit Plan [Member] |
EMEA [Member] |
Severance and Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
185 
Fourth Quarter 2010 Exit Plan [Member] |
EMEA [Member] |
Non-cash Impairment Charges [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
159 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
10,576 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member] |
Lease Obligations and Facility Exit Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
6,729 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member] |
Non-cash Impairment Charges [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
$ 3,847 
Costs Associated with Exit or Disposal Activities - Restructuring Charges in Company's Consolidated Statements of Operations (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Restructuring Cost and Reserve [Line Items]
 
 
 
Charges (reversal) of exit or disposal activities and related charges
$ (314)
$ 262 
$ 1,804 
Americas [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Charges (reversal) of exit or disposal activities and related charges
 
 
1,426 
EMEA [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Charges (reversal) of exit or disposal activities and related charges
(314)
262 
378 
Lease Obligations and Facility Exit Costs [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Charges (reversal) of exit or disposal activities and related charges
(185)
318 
858 
Severance and Related Costs [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Charges (reversal) of exit or disposal activities and related charges
(129)
(56)
857 
Legal-Related Costs [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Charges (reversal) of exit or disposal activities and related charges
 
 
89 
Direct Salaries and Related Costs [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Charges (reversal) of exit or disposal activities and related charges
 
 
715 
General and Administrative [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Charges (reversal) of exit or disposal activities and related charges
$ (314)
$ 262 
$ 1,089 
Costs Associated with Exit or Disposal Activities - Summary of Accrued Liability Associated with Company's Exit Plans (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Short-term accrued restructuring liability
$ 630 
$ 1,245 
 
 
Long-term accrued restructuring liability
928 
1,729 
 
 
Ending Balance
1,558 
2,974 
3,969 
9,322 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Short-term accrued restructuring liability
109 
136 
 
 
Long-term accrued restructuring liability
203 
376 
 
 
Ending Balance
312 
512 
 
 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Short-term accrued restructuring liability
 
131 
 
 
Ending Balance
   
131 
 
 
Fourth Quarter 2010 Exit Plan [Member] |
EMEA [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Short-term accrued restructuring liability
 
538 
 
 
Ending Balance
   
538 
 
 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Short-term accrued restructuring liability
521 
440 
 
 
Long-term accrued restructuring liability
725 
1,353 
 
 
Ending Balance
$ 1,246 
$ 1,793 
 
 
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Assets:
 
 
Total assets
$ 113,505 
$ 59,379 
Liabilities:
 
 
Long-term debt
75,000 
98,000 
Total liabilities
76,261 
103,063 
Money Market Funds and Open-End Mutual Funds [Member]
 
 
Assets:
 
 
Money market funds and open-end mutual funds included in "Cash and cash equivalents"
100,915 
50,627 
Money market funds and open-end mutual funds included in "Deferred charges and other assets"
10 
11 
Foreign Currency Forward and Option Contracts Included in Other Current Assets [Member]
 
 
Assets:
 
 
Foreign currency forward and option contracts
1,489 
2,240 
Foreign Currency Forward Contracts Included in Deferred Charges and Other Assets [Member]
 
 
Assets:
 
 
Foreign currency forward and option contracts
4,060 
 
Equity Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member]
 
 
Assets:
 
 
Debt investments held in a rabbi trust for the Deferred Compensation Plan
5,589 
5,251 
Debt Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member]
 
 
Assets:
 
 
Debt investments held in a rabbi trust for the Deferred Compensation Plan
1,363 
1,170 
Guaranteed Investment Certificates [Member]
 
 
Assets:
 
 
Debt investments held in a rabbi trust for the Deferred Compensation Plan
79 
80 
Foreign Currency Forward and Option Contracts Included in Other Accrued Expenses and Current Liabilities [Member]
 
 
Liabilities:
 
 
Foreign currency forward and option contracts
1,261 
5,063 
Quoted Prices in Active Markets For Identical Assets Level 1 [Member]
 
 
Assets:
 
 
Total assets
107,877 
57,059 
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] |
Money Market Funds and Open-End Mutual Funds [Member]
 
 
Assets:
 
 
Money market funds and open-end mutual funds included in "Cash and cash equivalents"
100,915 
50,627 
Money market funds and open-end mutual funds included in "Deferred charges and other assets"
10 
11 
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] |
Equity Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member]
 
 
Assets:
 
 
Debt investments held in a rabbi trust for the Deferred Compensation Plan
5,589 
5,251 
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] |
Debt Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member]
 
 
Assets:
 
 
Debt investments held in a rabbi trust for the Deferred Compensation Plan
1,363 
1,170 
Significant Other Observable Inputs Level 2 [Member]
 
 
Assets:
 
 
Total assets
5,628 
2,320 
Liabilities:
 
 
Long-term debt
75,000 
98,000 
Total liabilities
76,261 
103,063 
Significant Other Observable Inputs Level 2 [Member] |
Foreign Currency Forward and Option Contracts Included in Other Current Assets [Member]
 
 
Assets:
 
 
Foreign currency forward and option contracts
1,489 
2,240 
Significant Other Observable Inputs Level 2 [Member] |
Foreign Currency Forward Contracts Included in Deferred Charges and Other Assets [Member]
 
 
Assets:
 
 
Foreign currency forward and option contracts
4,060 
 
Significant Other Observable Inputs Level 2 [Member] |
Guaranteed Investment Certificates [Member]
 
 
Assets:
 
 
Debt investments held in a rabbi trust for the Deferred Compensation Plan
79 
80 
Significant Other Observable Inputs Level 2 [Member] |
Foreign Currency Forward and Option Contracts Included in Other Accrued Expenses and Current Liabilities [Member]
 
 
Liabilities:
 
 
Foreign currency forward and option contracts
$ 1,261 
$ 5,063 
Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
$ 114,827 
$ 116,893 
Accumulated Amortization
(54,207)
(40,838)
Net Intangibles
60,620 
76,055 
Weighted Average Amortization Period (years)
8 years 
8 years 
Customer Relationships [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
100,719 
102,774 
Accumulated Amortization
(47,571)
(35,873)
Net Intangibles
53,148 
66,901 
Weighted Average Amortization Period (years)
8 years 
8 years 
Trade Name [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
11,600 
11,600 
Accumulated Amortization
(4,128)
(2,803)
Net Intangibles
7,472 
8,797 
Weighted Average Amortization Period (years)
8 years 
8 years 
Non-Compete Agreements [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
1,209 
1,220 
Accumulated Amortization
(1,209)
(1,009)
Net Intangibles
 
211 
Weighted Average Amortization Period (years)
2 years 
2 years 
Proprietary Software [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
850 
850 
Accumulated Amortization
(850)
(847)
Net Intangibles
 
Weighted Average Amortization Period (years)
2 years 
2 years 
Favorable Lease Agreement [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
449 
449 
Accumulated Amortization
(449)
(306)
Net Intangibles
 
$ 143 
Weighted Average Amortization Period (years)
2 years 
2 years 
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
2015
$ 13,884 
2016
13,884 
2017
13,884 
2018
7,565 
2019
6,961 
2020 and thereafter
$ 4,442 
Goodwill and Intangible Assets - Changes in Goodwill (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Goodwill [Line Items]
 
 
Beginning Balance, Goodwill Net
$ 199,802 
$ 204,231 
Acquisitions
Impairments
Effect of Foreign Currency
(5,971)
(4,429)
Ending Balance, Goodwill Net
193,831 
199,802 
Americas [Member]
 
 
Goodwill [Line Items]
 
 
Beginning Balance, Goodwill Net
199,802 
204,231 
Acquisitions
Impairments
Effect of Foreign Currency
(5,971)
(4,429)
Ending Balance, Goodwill Net
193,831 
199,802 
EMEA [Member]
 
 
Goodwill [Line Items]
 
 
Acquisitions
Impairments
$ 0 
$ 0 
Receivable, Net - Receivable, Net (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Receivables, Net, Current [Abstract]
 
 
Trade accounts receivable
$ 290,711 
$ 266,048 
Income taxes receivable
993 
1,377 
Other
3,354 
2,478 
Receivables, gross
295,058 
269,903 
Less: Allowance for doubtful accounts
4,661 
4,987 
Receivables, net
$ 290,397 
$ 264,916 
Allowance for doubtful accounts as a percent of trade receivables
1.60% 
1.90% 
Prepaid Expenses - Prepaid Expenses, Net (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Prepaid Expense, Current [Abstract]
 
 
Prepaid maintenance
$ 5,315 
$ 5,852 
Prepaid rent
3,147 
3,009 
Prepaid insurance
3,112 
2,631 
Prepaid other
3,322 
4,218 
Total prepaid expenses
$ 14,896 
$ 15,710 
Other Current Assets - Other Current Assets, Net (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
Deferred tax assets (Note 22)
$ 13,703 
$ 7,961 
Financial derivatives (Note 12)
1,489 
2,240 
Investments held in rabbi trust (Note 13)
6,952 
6,421 
Value added tax certificates (Note 11)
6,303 
2,066 
Other current assets
1,209 
1,984 
Total other current assets
$ 29,656 
$ 20,672 
Value Added Tax Receivables - Value Added Tax Receivables, Net (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
VAT included in:
 
 
Other current assets (Note 10)
$ 6,303 
$ 2,066 
Deferred charges and other assets (Note 15)
856 
5,406 
Total VAT receivables
$ 7,159 
$ 7,472 
Value Added Tax Receivables - Write- Down of Value Added Tax Receivables (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Write-Downs (Recoveries) of Value Added Tax Receivables [Abstract]
 
 
 
Write-downs (recoveries) of value added tax receivables
$ (638)
$ 143 
$ 546 
Financial Derivatives - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
 
Maximum period of foreign currency hedge contracts
180 days 
 
Maximum amount of loss due to credit risk
$ 5.5 
$ 2.2 
Total net settlement amount asset position
4.4 
0.4 
Total net settlement amount liability position
$ 0.1 
$ 3.3 
Financial Derivatives - Outstanding Foreign Currency Forward Contracts and Options (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Option Contracts [Member] |
Philippine Pesos [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
$ 73,000 
$ 59,000 
Settle Through Date
Dec. 31, 2015 
Dec. 31, 2014 
Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Forwards [Member] |
Philippine Pesos [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
9,000 
63,300 
Settle Through Date
Mar. 31, 2015 
Jul. 31, 2014 
Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Forwards [Member] |
Costa Rican Colones [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
51,600 
41,600 
Settle Through Date
Oct. 31, 2015 
Oct. 31, 2014 
Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Forwards [Member] |
Hungarian Forints [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
 
550 
Settle Through Date
   
Jan. 31, 2014 
Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Forwards [Member] |
Romanian Leis [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
10,414 
619 
Settle Through Date
Dec. 31, 2015 
Jan. 31, 2014 
Derivatives Designated as Net Investment Hedging Instruments under ASC 815 [Member] |
Forwards [Member] |
Euros [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
51,648 
32,657 
Settle Through Date
Mar. 31, 2016 
Sep. 30, 2014 
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Forwards [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
$ 64,541 
$ 59,207 
Settle Through Date
Mar. 31, 2015 
Jun. 30, 2014 
Financial Derivatives - Derivative Instruments Fair Value (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
$ 5,549 
$ 2,240 
Derivative Liabilities
1,261 
5,063 
Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Current Assets [Member] |
Option Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
974 
862 
Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member] |
Option Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liabilities
406 
2,997 
Derivatives Designated as Net Investment Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Deferred Charges and Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
4,060 
 
Derivatives Designated as Net Investment Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liabilities
 
1,720 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Option Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
5,034 
862 
Derivative Liabilities
406 
4,717 
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
515 
1,378 
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liabilities
$ 855 
$ 346 
Financial Derivatives - Effect of Company's Derivative Instruments (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
$ 3,557 
$ (4,543)
$ 4,400 
Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)
(5,339)
(666)
4,156 
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion)
(3)
119 
17 
Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Option Contracts [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
(2,787)
(2,823)
4,400 
Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)
(5,339)
(666)
4,156 
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion)
(3)
119 
17 
Derivatives Designated as Net Investment Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
6,344 
(1,720)
 
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Gain (Loss) Recognized in "Other income and (expense)" on Derivatives
$ (44)
$ 4,216 
$ (295)
Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Mutual funds, Fair Value
$ 6,952 
$ 6,421 
Mutual Funds [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Mutual funds, Cost
5,160 
4,749 
Mutual funds, Fair Value
$ 6,952 
$ 6,421 
Investments Held in Rabbi Trust - Additional Information (Detail)
Dec. 31, 2014
Equity-Based Securities [Member]
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
Mutual funds held in rabbi trust
80.00% 
Debt-Based Securities [Member]
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
Mutual funds held in rabbi trust
20.00% 
Investments Held in Rabbi Trust - Components of Investment Income (Losses), Included in Other Income (Expense) in Accompanying Consolidated Statements of Operations (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Investments, Debt and Equity Securities [Abstract]
 
 
 
Gross realized gains from sale of trading securities
$ 586 
$ 160 
$ 163 
Gross realized (losses) from sale of trading securities
 
(10)
(1)
Dividend and interest income
58 
279 
129 
Net unrealized holding gains (losses)
(276)
568 
312 
Net investment income (losses)
$ 368 
$ 997 
$ 603 
Property and Equipment - Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
$ 408,808 
$ 394,809 
Less: Accumulated depreciation
298,928 
277,260 
Property and equipment, net
109,880 
117,549 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
3,600 
4,144 
Buildings and Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
94,786 
92,652 
Equipment, Furniture and Fixtures [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
293,857 
287,728 
Capitalized Internally Developed Software Costs [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
7,963 
7,752 
Transportation Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
531 
624 
Construction in Progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
$ 8,071 
$ 1,909 
Property and Equipment - Capitalized Internally Developed Software, Net of Depreciation (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, net
$ 109,880 
$ 117,549 
Capitalized Internally Developed Software Costs [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, net
$ 1,270 
$ 2,599 
Property and Equipment - Additional Information (Detail) (USD $)
12 Months Ended 1 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Nov. 30, 2014
Bismarck, North Dakota [Member]
Dec. 31, 2013
Bismarck, North Dakota [Member]
Property, Plant and Equipment [Line Items]
 
 
 
 
 
Proceeds from sale of assets
$ 3,639,000 
$ 388,000 
$ 240,000 
$ 3,100,000 
 
Selling costs
 
 
 
200,000 
 
Net gain on sale
2,030,000 
(201,000)
(391,000)
2,600,000 
 
Property and equipment, net
109,880,000 
117,549,000 
 
 
900,000 
Net property grants
$ 5,110,000 
$ 6,643,000 
 
 
$ 400,000 
Deferred Charges and Other Assets - Components of Deferred Charges and Other Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Derivatives, Fair Value [Line Items]
 
 
Non-current deferred tax assets (Note 22)
$ 1,681 
$ 13,048 
Non-current mandatory tax security deposits (Note 22)
15,906 
17,317 
Non-current value added tax certificates (Note 11)
856 
5,406 
Foreign currency forward contracts (Note 12)
5,549 
2,240 
Rent and other deposits
3,215 
3,169 
Other
4,365 
4,632 
Deferred charges and other assets, total
30,083 
43,572 
Deferred Charges and Other Assets [Member] |
Foreign Currency Forward Contracts [Member] |
Derivatives Designated as Net Investment Hedging Instruments under ASC 815 [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Foreign currency forward contracts (Note 12)
$ 4,060 
 
Accrued Employee Compensation and Benefits - Components of Accrued Employee Compensation and Benefits (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Employee-related Liabilities, Current [Abstract]
 
 
Accrued compensation
$ 32,786 
$ 32,003 
Accrued bonus and commissions
18,590 
14,265 
Accrued vacation
16,613 
17,055 
Accrued employment taxes
9,362 
12,448 
Other
4,721 
5,293 
Accrued employee compensation and benefits
$ 82,072 
$ 81,064 
Deferred Revenue - Components of Deferred Revenue (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Deferred Revenue Disclosure [Abstract]
 
 
Future service
$ 25,222 
$ 25,102 
Estimated potential penalties and holdbacks
9,023 
9,923 
Deferred revenue
$ 34,245 
$ 35,025 
Other Accrued Expenses and Current Liabilities - Other Accrued Expenses and Current Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Derivatives, Fair Value [Line Items]
 
 
Accrued legal and professional fees
$ 4,508 
$ 3,220 
Accrued equipment and software
2,196 
1,779 
Accrued roadside assistance claim costs
1,878 
2,341 
Accrued utilities
1,329 
1,425 
Accrued telephone charges
1,068 
1,475 
Customer deposits
793 
2,418 
Accrued rent
640 
2,057 
Accrued restructuring (Note 4)
630 
1,245 
Other
7,913 
9,370 
Total
22,216 
30,393 
Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Option Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Foreign currency forward and option contracts (Note 12)
$ 1,261 
$ 5,063 
Deferred Grants - Schedule of Deferred Grants (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Deferred Grants [Abstract]
 
 
Property grants
$ 5,110 
$ 6,643 
Employment grants
207 
146 
Total deferred grants
5,317 
6,789 
Less: Property grants - short-term
 
(6)
Less: Employment grants - short-term
(207)
(146)
Total long-term deferred grants
5,110 
6,637 
Total deferred grants
$ 5,317 
$ 6,789 
Borrowings - Additional Information (Detail) (USD $)
9 Months Ended 12 Months Ended
Sep. 30, 2014
2012 Credit Agreement [Member]
Dec. 31, 2014
2012 Credit Agreement [Member]
Dec. 31, 2013
2012 Credit Agreement [Member]
Dec. 31, 2012
2012 Credit Agreement [Member]
May 31, 2012
2012 Credit Agreement [Member]
May 3, 2012
2012 Credit Agreement [Member]
Dec. 31, 2014
2012 Credit Agreement [Member]
Non-Voting Capital Stock Direct Foreign Subsidiaries [Member]
Dec. 31, 2014
2012 Credit Agreement [Member]
Voting Capital Stock Direct Foreign Subsidiaries [Member]
Feb. 2, 2010
2010 Credit Agreement [Member]
May 3, 2012
Alternate-Currency Sub-Facility [Member]
May 3, 2012
Swingline Sub-Facility [Member]
May 3, 2012
Letter of Credit Sub-Facility [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
 
$ 245,000,000 
 
 
$ 75,000,000 
$ 184,000,000 
$ 10,000,000 
$ 35,000,000 
Line of credit facility, expiration date
May 02, 2017 
 
 
 
 
 
 
 
 
 
 
 
Varying installments due
 
 
 
 
 
 
 
 
 
 
 
Credit agreement interest rate description
 
Borrowings under the 2012 Credit Agreement will bear interest at the rates set forth in the Credit Agreement. 
 
 
 
 
 
 
 
 
 
 
Credit agreement customary fees description
 
The Company is required to pay certain customary fees, including a commitment fee of 0.175%, which is due quarterly in arrears and calculated on the average unused amount of the 2012 Credit Agreement. 
 
 
 
 
 
 
 
 
 
 
Commitment fee
 
0.175% 
 
 
 
 
 
 
 
 
 
 
Percentage of capital stock pledged under credit agreement
 
 
 
 
 
 
100.00% 
65.00% 
 
 
 
 
Underwriting fee for credit agreement
 
 
 
 
900,000 
 
 
 
 
 
 
 
Average daily utilization of borrowings
 
85,900,000 
102,500,000 
96,800,000 
 
 
 
 
 
 
 
 
Interest expense, excluding amortization of deferred loan fees
 
$ 1,100,000 
$ 1,500,000 
$ 500,000 
 
 
 
 
 
 
 
 
Weighted average interest rate
 
1.30% 
1.50% 
1.50% 
 
 
 
 
 
 
 
 
Borrowings - Components of Borrowings (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Line of Credit Facility [Line Items]
 
 
Total long-term debt
$ 75,000 
$ 98,000 
Revolving Credit Facility [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Revolving credit facility
75,000 
98,000 
Less: Current portion
   
   
Total long-term debt
$ 75,000 
$ 98,000 
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
$ 7,997 
$ 14,856 
$ 4,436 
Pre-tax amount
(31,366)
(8,152)
14,524 
Tax (provision) benefit
(2,345)
1,067 
(396)
Reclassification of (gain) loss to net income
5,153 
226 
(3,708)
Ending balance, accumulated other comprehensive income (loss)
(20,561)
7,997 
14,856 
Foreign Currency Translation Gain (Loss) [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
12,751 
16,083 
5,995 
Pre-tax amount
(34,947)
(3,465)
9,516 
Reclassification of (gain) loss to net income
 
 
570 
Foreign currency translation
120 
133 
Ending balance, accumulated other comprehensive income (loss)
(22,076)
12,751 
16,083 
Unrealized Gain (Loss) on Net Investment Hedges [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
(3,683)
(2,565)
(2,565)
Pre-tax amount
6,344 
(1,720)
Tax (provision) benefit
(2,385)
602 
 
Ending balance, accumulated other comprehensive income (loss)
276 
(3,683)
(2,565)
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
1,150 
1,413 
985 
Pre-tax amount
(50)
(136)
499 
Tax (provision) benefit
57 
16 
(90)
Reclassification of (gain) loss to net income
(35)
(41)
(48)
Foreign currency translation
(114)
(102)
67 
Ending balance, accumulated other comprehensive income (loss)
1,008 
1,150 
1,413 
Unrealized Gain (Loss) on Cash Flow Hedging Instruments [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
(2,535)
(570)
(438)
Pre-tax amount
(2,790)
(2,704)
4,417 
Tax (provision) benefit
(17)
449 
(306)
Reclassification of (gain) loss to net income
5,237 
321 
(4,174)
Foreign currency translation
(6)
(31)
(69)
Ending balance, accumulated other comprehensive income (loss)
(111)
(2,535)
(570)
Unrealized Gain (Loss) on Post Retirement Obligation [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
314 
495 
459 
Pre-tax amount
77 
(127)
92 
Reclassification of (gain) loss to net income
(49)
(54)
(56)
Ending balance, accumulated other comprehensive income (loss)
$ 342 
$ 314 
$ 495 
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
Pre-tax amount
$ 77,159 
$ 51,325 
$ 45,157 
Tax (provision) benefit
19,368 
14,065 
5,207 
Reclassification of gain (loss) to net income
57,791 
37,260 
28,423 
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
(5,153)
(226)
 
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
(15)
(19)
 
Reclassification of gain (loss) to net income
35 
41 
 
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
105 
226 
 
Reclassification of gain (loss) to net income
(5,237)
(321)
 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Gain (Loss) on Post Retirement Obligation [Member]
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
Tax (provision) benefit
   
   
 
Reclassification of gain (loss) to net income
49 
54 
 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Direct Salaries and Related Costs [Member] |
Actuarial Gain (Loss) Related to Pension Liability [Member]
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
Pre-tax amount
50 
60 
 
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
(5,342)
(547)
 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
General and Administrative [Member] |
Gain (Loss) on Post Retirement Obligation [Member]
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
Pre-tax amount
$ 49 
$ 54 
 
Income Taxes - Income from Continuing Operations before Income Taxes (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Tax Disclosure [Abstract]
 
 
 
Domestic (U.S., state and local)
$ 28,563 
$ 5,544 
$ (10,430)
Foreign
48,596 
45,781 
55,587 
Income from continuing operations before income taxes
$ 77,159 
$ 51,325 
$ 45,157 
Income Taxes - Significant Components of Income Tax Provision (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Current:
 
 
 
U.S. federal
$ 2,579 
$ 881 
$ 236 
State and local
542 
82 
(61)
Foreign
11,382 
13,464 
9,899 
Total current provision for income taxes
14,503 
14,427 
10,074 
Deferred:
 
 
 
U.S. federal
5,437 
866 
(2,846)
State and local
(446)
 
 
Foreign
(126)
(1,228)
(2,021)
Total deferred provision (benefit) for income taxes
4,865 
(362)
(4,867)
Total provision for income taxes
$ 19,368 
$ 14,065 
$ 5,207 
Income Taxes - Significant Portions of Deferred Income Tax Provision (Benefit) Due to Temporary Differences (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Tax Disclosure [Abstract]
 
 
 
Net operating loss and tax credit carryforwards
$ 19,335 
$ 8,029 
$ (4,113)
Depreciation and amortization
(6,220)
(5,030)
(5,684)
Accrued expenses/liabilities
(4,505)
954 
(1,274)
Valuation allowance
(3,706)
(1,887)
4,120 
Deferred statutory income
(29)
(2,425)
2,084 
Other
(10)
(3)
 
Total deferred provision (benefit) for income taxes
$ 4,865 
$ (362)
$ (4,867)
Income Taxes - Reconciliation of Income Tax Provision (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Tax Disclosure [Abstract]
 
 
 
Tax at U.S. federal statutory tax rate
$ 27,005 
$ 17,964 
$ 15,805 
State income taxes, net of federal tax benefit
934 
82 
(61)
Foreign rate differential
(13,164)
(9,319)
(7,078)
Tax holidays
(2,749)
(4,686)
(6,450)
Permanent differences
10,170 
9,051 
3,531 
Tax credits
(4,894)
(5,020)
(699)
Foreign withholding and other taxes
2,541 
4,643 
1,263 
Change in valuation allowance, net of related adjustments
(7)
1,354 
(538)
Changes in uncertain tax positions
(468)
(4)
(613)
Change of assertion related to foreign earnings distribution
 
 
47 
Total provision for income taxes
$ 19,368 
$ 14,065 
$ 5,207 
Income Taxes - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Tax [Line Items]
 
 
 
 
Withholding taxes related to offshore cash movements
$ 1,800,000 
$ 4,100,000 
$ 800,000 
 
Undistributed earnings of foreign subsidiaries
380,800,000 
 
 
 
Income tax holiday expiration dates
2015 through 2028 
 
 
 
Decrease in the amount of the provision for income taxes due to tax holidays
2,749,000 
4,686,000 
6,450,000 
 
Decrease in the amount per diluted share of the provision for income taxes due to tax holidays
$ 0.06 
$ 0.11 
$ 0.15 
 
Income tax loss carryforwards, total
185,000,000 
 
 
 
Unrecognized tax benefits
13,285,000 
14,991,000 
16,897,000 
17,136,000 
Unrecognized tax benefits expected to be realized in next twelve months
2,200,000 
 
 
 
Unrecognized tax benefits that would impact effective tax rate
13,300,000 
15,000,000 
 
 
Accrued interest and penalties related to unrecognized tax benefits
10,100,000 
10,500,000 
 
 
Interest and penalties recognized in the accompanying Consolidated Statement of Operations
(500,000)
400,000 
(100,000)
 
Amount of mandatory security deposit paid related to Notice of Objection
15,900,000 
17,300,000 
 
 
Deferred Charges and Other Assets [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Unrecognized tax benefits
2,700,000 
 
 
 
Long-Term Income Tax Liabilities [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Unrecognized tax benefits
10,600,000 
15,000,000 
 
 
Statutory Penalties [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Accrued interest and penalties related to unrecognized tax benefits
3,300,000 
3,800,000 
 
 
Foreign Operations [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Income tax loss carryforwards, total
131,400,000 
 
 
 
Operating loss carryforwards not recognized
123,500,000 
 
 
 
Foreign Operations [Member] |
Varying Expiration Dates [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Tax credit carryforward expiration date
Dec. 31, 2035 
 
 
 
Net operating loss carryforwards, related to foreign operations, with varying expiration dates
22,400,000 
 
 
 
Foreign Operations [Member] |
Indefinite Expiration Date [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Net operating loss carryforwards have an indefinite expiration date, respect to foreign operations
109,000,000 
 
 
 
U.S. State Operations [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Income tax loss carryforwards, total
53,600,000 
 
 
 
Benefit recognized from operating loss carryforward
 
 
 
Operating loss carryforwards not recognized
50,300,000 
 
 
 
U.S. Federal [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Tax credits
$ 2,700,000 
 
 
 
Tax credit carryforward expiration date
Dec. 31, 2035 
 
 
 
Income Taxes - Significant Portions of Deferred Tax Assets and Liabilities Due to Temporary Differences (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Deferred tax assets:
 
 
Net operating loss and tax credit carryforwards
$ 35,400 
$ 61,626 
Valuation allowance
(34,146)
(42,664)
Accrued expenses
25,694 
21,305 
Deferred revenue
3,757 
4,045 
Depreciation and amortization
835 
559 
Other
 
104 
Deferred tax assets, total
31,540 
44,975 
Deferred tax liabilities:
 
 
Depreciation and amortization
(20,172)
(26,379)
Deferred statutory income
(772)
(241)
Accrued liabilities
(141)
(79)
Other
(1)
(114)
Deferred tax liabilities, total
(21,086)
(26,813)
Net deferred tax assets
$ 10,454 
$ 18,162 
Income Taxes - Schedule of Deferred Tax Assets and Liabilities Classifications (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Classified as follows:
 
 
Other current assets (Note 10)
$ 13,703 
$ 7,961 
Other long-term liabilities
(4,786)
(2,763)
Deferred charges and other assets (Note 15)
1,681 
13,048 
Current deferred income tax liabilities
(144)
(84)
Net deferred tax assets
$ 10,454 
$ 18,162 
Income Taxes - Reconciliation of Amounts of Unrecognized Net Tax Benefits (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Tax Disclosure [Abstract]
 
 
 
Gross unrecognized tax benefits as of January 1,
$ 14,991 
$ 16,897 
$ 17,136 
Prior period tax position increases (decreases)
 
 
321 
Decreases from settlements with tax authorities
 
 
(426)
Decreases due to lapse in applicable statute of limitations
 
(390)
(561)
Foreign currency translation increases (decreases)
(1,706)
(1,516)
427 
Gross unrecognized tax benefits as of December 31,
$ 13,285 
$ 14,991 
$ 16,897 
Income Taxes - Summary of Significant Tax Jurisdictions Currently under Audit (Detail)
12 Months Ended
Dec. 31, 2014
Canada [Member]
 
Income Tax Examination [Line Items]
 
Significant tax jurisdictions currently under audit
2003 to 2009 
The Philippines [Member]
 
Income Tax Examination [Line Items]
 
Significant tax jurisdictions currently under audit
2009 and 2010 
Income Taxes - Summary of Tax Jurisdictions and Open Tax Years (Detail)
12 Months Ended
Dec. 31, 2014
Canada [Member]
 
Income Tax Examination [Line Items]
 
Open tax years by major tax jurisdiction
2003 to present 
The Philippines [Member]
 
Income Tax Examination [Line Items]
 
Open tax years by major tax jurisdiction
2009 to present 
United States [Member]
 
Income Tax Examination [Line Items]
 
Open tax years by major tax jurisdiction
2002 to 2010 and 2011 to present 
Earnings Per Share - Numbers of Shares Used in Earnings Per Share Computation (Detail)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Basic:
 
 
 
Weighted average common shares outstanding
42,609 
42,877 
43,105 
Diluted:
 
 
 
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in a rabbi trust
205 
48 
43 
Total weighted average diluted shares outstanding
42,814 
42,925 
43,148 
Anti-dilutive shares excluded from the diluted earnings per share calculation
37 
42 
 
Earnings Per Share - Additional Information (Detail)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
2011 Share Repurchase Program [Member]
Aug. 18, 2011
2011 Share Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
 
Maximum amount of shares authorized for repurchase
 
 
 
 
5,000,000 
Total Number of Shares Repurchased
630,000 
341,000 
537,000 
4,000,000 
 
Earnings Per Share - Shares Repurchased (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Schedule Of Shares Repurchased [Line Items]
 
 
 
Total Number of Shares Repurchased
630 
341 
537 
Total Cost of Shares Repurchased
$ 12,581 
$ 5,479 
$ 7,908 
Minimum [Member]
 
 
 
Schedule Of Shares Repurchased [Line Items]
 
 
 
Range of Prices Paid Per Share
$ 19.80 
$ 15.61 
$ 13.85 
Maximum [Member]
 
 
 
Schedule Of Shares Repurchased [Line Items]
 
 
 
Range of Prices Paid Per Share
$ 20.00 
$ 16.99 
$ 15.00 
Commitments and Loss Contingency - Additional Information (Detail)
12 Months Ended
Dec. 31, 2014
Long-term Purchase Commitment [Line Items]
 
Renewal options of building leases
Up to three five-year renewal options 
Minimum [Member]
 
Long-term Purchase Commitment [Line Items]
 
Original term of operating lease
1 year 
Term of agreements with third party vendors
1 year 
Maximum [Member]
 
Long-term Purchase Commitment [Line Items]
 
Original term of operating lease
20 years 
Term of agreements with third party vendors
5 years 
Commitments and Loss Contingency - Rental Expense under Operating Leases (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
 
 
 
Rental expense
$ 44,916 
$ 47,365 
$ 43,626 
Commitments and Loss Contingency - Schedule of Future Minimum Rental Payments under Operating Leases (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Operating Leases Future Minimum Payments Due [Abstract]
 
2015
$ 33,287 
2016
24,907 
2017
21,586 
2018
20,325 
2019
15,617 
2020 and thereafter
35,801 
Total minimum payments required
$ 151,523 
Commitments and Loss Contingency - Schedule of Future Minimum Purchases Remaining under Agreements (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Unrecorded Unconditional Purchase Obligation [Abstract]
 
2015
$ 33,039 
2016
21,025 
2017
10,448 
2018
1,485 
2019
1,483 
2020 and thereafter
1,600 
Total minimum payments required
$ 69,080 
Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2014
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
 
Company's maximum expected cash contributions to the Pension Plans in the next fiscal year
$ 0 
Maximum expected actuarial gain to be recognize as a component of periodic benefit cost next fiscal year
$ 100,000 
Percentage of employer's contribution based on participants contribution
50.00% 
Maximum [Member]
 
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
 
Percentage of employer's contribution based on participants compensation
2.00% 
Defined Benefit Pension Plan and Postretirement Benefits - Reconciliation of Change in Benefit Obligation (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
Beginning benefit obligation
$ 2,481 
$ 1,997 
 
Service cost
387 
392 
372 
Interest cost
104 
137 
120 
Actuarial (gains) losses
50 
136 
 
Effect of foreign currency translation
78 
(181)
 
Ending benefit obligation
3,100 
2,481 
1,997 
Unfunded status
(3,100)
(2,481)
 
Net amount recognized
$ (3,100)
$ (2,481)
 
Defined Benefit Pension Plan and Postretirement Benefits - Benefit Obligations and Net Periodic Benefit Cost for Pension Plans (Detail)
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
 
 
5.90% 
Rate of compensation increase
2.00% 
2.00% 
2.00% 
Minimum [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
4.50% 
4.30% 
 
Maximum [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
4.90% 
5.20% 
 
Defined Benefit Pension Plan and Postretirement Benefits - Net Periodic Benefit Cost and Other Accumulated Comprehensive Income for Pension Plans (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
Service cost
$ 387 
$ 392 
$ 372 
Interest cost
104 
137 
120 
Recognized actuarial (gains)
(50)
(60)
(46)
Net periodic benefit cost
441 
469 
446 
Unrealized net actuarial (gains), net of tax
(1,008)
(1,150)
(1,413)
Total amount recognized in net periodic benefit cost and other accumulated comprehensive income (loss)
$ (567)
$ (681)
$ (967)
Defined Benefit Pension Plan and Postretirement Benefits - Estimated Future Benefit Payments for Expected Future Service (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
 
2015
$ 28 
2016
133 
2017
77 
2018
58 
2019
303 
2020 - 2024
$ 963 
Defined Benefit Pension Plan and Postretirement Benefits - Company's Contributions to Employee Retirement Savings Plans (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Compensation and Retirement Disclosure [Abstract]
 
 
 
401(k) plan contributions
$ 870 
$ 895 
$ 1,221 
Defined Benefit Pension Plan and Postretirement Benefits - Post-Retirement Benefit Obligation and Unrealized Gain (Losses) (Detail) (Split-Dollar Life Insurance Arrangement [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Split-Dollar Life Insurance Arrangement [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Postretirement benefit obligation
$ 46 
$ 81 
Unrealized gains (losses) in AOCI
$ 342 
$ 314 
Stock-Based Compensation - Additional Information (Detail) (USD $)
Share data in Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
Deferred Compensation Plan [Member]
Dec. 31, 2014
2011 Equity Incentive Plan [Member]
Dec. 31, 2014
2001 Equity Incentive Plan [Member]
Dec. 31, 2014
Stock Appreciation Rights (SARs) [Member]
Dec. 31, 2014
Restricted Shares [Member]
Restricted Stock Units [Member]
Dec. 31, 2014
Restricted Shares [Member]
Restricted Stock Units [Member]
Minimum [Member]
Dec. 31, 2014
Restricted Shares [Member]
Restricted Stock Units [Member]
Maximum [Member]
Dec. 31, 2014
Nonvested Common Stock Share Awards under 2004 Non-Employee Director Fee Plan [Member]
May 20, 2011
Nonvested Common Stock Share Awards under 2004 Non-Employee Director Fee Plan [Member]
Dec. 31, 2014
Deferred Compensation Plan [Member]
Dec. 31, 2013
Deferred Compensation Plan [Member]
Dec. 31, 2014
Deferred Compensation Plan [Member]
President, Chief Executive Officer and Executive Vice Presidents [Member]
Dec. 31, 2014
Deferred Compensation Plan [Member]
Senior Vice President, Global Vice Presidents and Vice Presidents [Member]
Dec. 31, 2014
May 17, 2012 Nonvested Common Stock Share Awards under 2004 Non-Employee Director Fee Plan [Member]
Dec. 31, 2014
May 20, 2011 Nonvested Common Stock Share Awards under 2004 Non-Employee Director Fee Plan [Member]
Dec. 31, 2014
Nonvested Common Stock Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized stock-based compensation costs
$ 0 
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares of common stock available under the 2011 plan
 
 
 
 
4.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2001 equity incentive plan
 
 
 
 
 
Mar. 14, 2011 
 
 
 
 
May 31, 2014 
 
 
 
 
 
 
 
 
Share-based compensation plan expiration
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation vesting period
 
 
 
 
 
 
One-third on each of the first three anniversaries of the date of grant 
One-third on each of the first three anniversaries of the date of grant 
 
 
 
 
 
 
 
 
 
 
 
Weighted average period
 
 
 
2 years 1 month 6 days 
 
 
1 year 3 months 18 days 
1 year 4 months 24 days 
 
 
 
 
 
 
 
 
 
 
8 months 12 days 
Total unrecognized compensation cost
 
 
 
100,000 
 
 
1,700,000 
14,100,000 
 
 
 
 
 
 
 
 
 
 
200,000 
Range of vesting possibilities
 
 
 
 
 
 
 
 
0.00% 
100.00% 
 
 
 
 
 
 
 
 
 
Value of initial granted shares of common stock to new non employee director
 
 
 
 
 
 
 
 
 
 
60,000 
 
 
 
 
 
 
 
 
Vesting period of initial granted shares of common stock to new non employee director
 
 
 
 
 
 
 
 
 
 
Twelve equal quarterly installments, one-twelfth on the date of grant and an additional one-twelfth on each successive third monthly anniversary of the date of grant. 
 
 
 
 
 
 
 
 
Value of Annual Retainer to New Non-Employee Director
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
125,000 
95,000 
 
Annual Retainer payable in cash to New Non Employee Director
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50,000 
50,000 
 
Amended vesting period of cash Annual retainer to non-employee chairman and committee members
 
 
 
 
 
 
 
 
 
 
Vested in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant 
 
 
 
 
 
 
 
 
Vesting period of annual granted shares of common stock to non-employee director
 
 
 
 
 
 
 
 
 
 
Vests in eight equal quarterly installments, one-eighth on the day following the annual meeting of shareholders, and an additional one-eighth on each successive third monthly anniversary of the date of grant 
 
 
 
 
 
 
 
 
Increased stock component of annual retainer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30,000 
 
 
Vesting period for the annual equity award
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
2 years 
 
Amended vesting period of annual granted shares of common stock to non-employee director
 
 
 
 
 
 
 
 
 
 
Four equal quarterly installments, one-fourth on the date of grant and an additional one-fourth on each successive third monthly anniversary of the date of grant 
 
 
 
 
 
 
 
 
Additional annual cash award to be given to any non employee chairman of board
 
 
 
 
 
 
 
 
 
 
100,000 
 
 
 
 
 
 
 
 
Additional annual cash award to be given to Chairperson of the audit committee
 
 
 
 
 
 
 
 
 
 
20,000 
 
 
 
 
 
 
 
 
Additional annual cash award to be given to audit committee members
 
 
 
 
 
 
 
 
 
 
10,000 
 
 
 
 
 
 
 
 
Annual cash awards for the Chairpersons of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee
 
 
 
 
 
 
 
 
 
 
12,500 
 
 
 
 
 
 
 
 
Annual cash awards for the members of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee
 
 
 
 
 
 
 
 
 
 
7,500 
 
 
 
 
 
 
 
 
Increased additional annual cash award to Chairperson of Compensation Committee
 
 
 
 
 
 
 
 
 
 
 
15,000 
 
 
 
 
 
 
 
Percentage of contribution in respect of amounts deferred by certain senior management participants
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
Amounts deferred by certain senior management personnel
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,000 
7,500 
 
 
 
Vesting period of matching contributions and associated earnings
 
 
 
 
 
 
 
 
 
 
 
 
7 years 
 
 
 
 
 
 
Accrued employee compensation and benefits
 
 
 
 
 
 
 
 
 
 
 
 
7,000,000 
6,400,000 
 
 
 
 
 
Common stock match associated with the deferred compensation plan carrying value
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,500,000 
$ 1,600,000 
 
 
 
 
 
Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value (Detail) (Stock Appreciation Rights (SARs) [Member])
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Stock Appreciation Rights (SARs) [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected volatility
38.90% 
45.20% 
47.10% 
Weighted-average volatility
38.90% 
45.20% 
47.10% 
Expected dividend rate
0.00% 
0.00% 
0.00% 
Expected term (in years)
5 years 
5 years 
4 years 8 months 12 days 
Risk-free rate
1.70% 
0.80% 
0.80% 
Stock-Based Compensation - Summary of Stock Appreciation Rights Activity (Detail) (Stock Appreciation Rights (SARs) [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Stock Appreciation Rights (SARs) [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Nonvested Shares, beginning balance
963 
 
 
Granted, Shares
246 
318 
259 
Exercised, Shares
(77)
 
 
Forfeited or expired, Shares
(173)
 
 
Nonvested Shares, ending balance
959 
963 
 
Vested or expected to vest, Shares
959 
 
 
Exercisable, Shares
548 
 
 
Nonvested, Weighted Average Exercise Price, beginning balance
   
 
 
Granted, Weighted Average Exercise Price
   
 
 
Exercised, Weighted Average Exercise Price
   
 
 
Forfeited or expired, Weighted Average Exercised Price
   
 
 
Nonvested, Weighted Average Exercise price, ending balance
   
   
 
Vested or expected to vest, Weighted Average Exercise Price
   
 
 
Exercisable, Weighted Average Exercise Price
   
 
 
Nonvested, Weighted Average Remaining Contractual Term
7 years 
 
 
Vested or expected to vest, Weighted Average Remaining Contractual Term
7 years 
 
 
Exercisable, Weighted Average Remaining Contractual Term
5 years 9 months 18 days 
 
 
Outstanding, Aggregate Intrinsic Value
$ 5,171 
 
 
Vested or expected to vest, Aggregate Intrinsic Value
5,171 
 
 
Exercisable, Aggregate Intrinsic Value
$ 2,700 
 
 
Stock-Based Compensation - Weighted Average Grant Date of SARs Granted and Total Intrinsic Value of SARs Exercised (Detail) (Stock Appreciation Rights (SARs) [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Stock Appreciation Rights (SARs) [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Granted, Shares
246 
318 
259 
Weighted average grant-date fair value per SAR
$ 7.20 
$ 6.08 
$ 5.97 
Intrinsic value of SARs exercised
$ 391 
$ 488 
 
Fair value of vested
$ 1,553 
$ 1,298 
$ 1,388 
Stock-Based Compensation - Summary of Nonvested Stock Appreciation Rights (Detail) (Nonvested Stock Appreciation Rights (SARs) [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Nonvested Stock Appreciation Rights (SARs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Nonvested Shares, beginning balance
535 
Granted, Shares
246 
Vested, Shares
(246)
Forfeited or expired, Shares
(124)
Nonvested Shares, ending balance
411 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 6.17 
Granted, Weighted Average Grant-Date Fair Value
$ 7.20 
Vested, Weighted Average Grant-Date Fair Value
$ 6.31 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 6.48 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 6.61 
Stock-Based Compensation - Summary of Nonvested Restricted Shares and Restricted Stock Units (Detail) (Restricted Shares [Member], Restricted Stock Units [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Restricted Shares [Member] |
Restricted Stock Units [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Nonvested Shares, beginning balance
1,367 
 
 
Granted, Shares
500 
706 
420 
Vested, Shares
(57)
 
 
Forfeited or expired, Shares
(616)
 
 
Nonvested Shares, ending balance
1,194 
1,367 
 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 15.96 
 
 
Granted, Weighted Average Grant-Date Fair Value
$ 19.77 
$ 15.25 
$ 15.21 
Vested, Weighted Average Grant-Date Fair Value
$ 15.67 
 
 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 17.45 
 
 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 16.80 
$ 15.96 
 
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value Granted and Total Fair Value of Restricted Shares and Restricted Stock Units Vested (Detail) (Restricted Shares [Member], Restricted Stock Units [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Restricted Shares [Member] |
Restricted Stock Units [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Granted, Shares
500 
706 
420 
Weighted average grant-date fair value
$ 19.77 
$ 15.25 
$ 15.21 
Fair value of vested
$ 895 
$ 366 
$ 3,845 
Stock-Based Compensation - Summary of Nonvested Common Stock Units and Share Awards (Detail) (Nonvested Common Stock Share Awards [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Nonvested Common Stock Share Awards [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Nonvested Shares, beginning balance
 
 
Granted, Shares
36 
37 
42 
Vested, Shares
(33)
 
 
Forfeited or expired, Shares
 
 
Nonvested Shares, ending balance
12 
 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 16.01 
 
 
Granted, Weighted Average Grant-Date Fair Value
$ 20.15 
$ 16.01 
$ 16.15 
Vested, Weighted Average Grant-Date Fair Value
$ 18.95 
 
 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 0 
 
 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 20.24 
$ 16.01 
 
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Total Fair Value of Common Stock Units and Share Awards Vested (Detail) (Nonvested Common Stock Share Awards [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Nonvested Common Stock Share Awards [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Granted, Shares
36 
37 
42 
Weighted average grant-date fair value
$ 20.15 
$ 16.01 
$ 16.15 
Fair value of vested
$ 630 
$ 669 
$ 771 
Stock-Based Compensation - Summary of Nonvested Common Stock (Detail) (Common Stock [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Common Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Nonvested Shares, beginning balance
 
 
Granted, Shares
10 
13 
15 
Vested, Shares
(10)
 
 
Forfeited or expired, Shares
(1)
 
 
Nonvested Shares, ending balance
 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 16.89 
 
 
Granted, Weighted Average Grant-Date Fair Value
$ 20.54 
$ 16.76 
$ 15.27 
Vested, Weighted Average Grant-Date Fair Value
$ 20.13 
 
 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 16.30 
 
 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 17.88 
$ 16.89 
 
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Awarded and Cash Used to Settle Company's Obligation under Deferred Compensation (Detail) (Common Stock [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Common Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Granted, Shares
10 
13 
15 
Weighted average grant-date fair value
$ 20.54 
$ 16.76 
$ 15.27 
Fair value of vested
$ 212 
$ 257 
$ 195 
Cash used to settle the obligation
$ 1,493 
$ 1,014 
$ 459 
Segments and Geographic Information - Additional Information (Detail)
12 Months Ended
Dec. 31, 2014
Segment
Region
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
 
Number of operating regions
 
 
Number of reportable segments
 
 
Percentage of consolidated revenue of top ten clients
46.80% 
45.90% 
47.80% 
Minimum [Member] |
AT&T Corporation [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Contract expiration date
Jan. 01, 2015 
 
 
Maximum [Member] |
AT&T Corporation [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Contract expiration date
Dec. 31, 2017 
 
 
Segments and Geographic Information - Company's Reportable Segments (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
 
Revenues
$ 1,327,523 
$ 1,263,460 
$ 1,127,698 
Percentage of revenues
100.00% 
100.00% 
100.00% 
Depreciation, net
45,363 
42,084 
40,369 
Amortization of intangibles
14,396 
14,863 
10,479 
Income (loss) from continuing operations
79,555 
53,527 
47,779 
Other (expense), net
(2,396)
(2,202)
(2,622)
Income taxes
(19,368)
(14,065)
(5,207)
Income from continuing operations, net of taxes
57,791 
37,260 
39,950 
(Loss) from discontinued operations, net of taxes
 
 
(11,527)
Net income
57,791 
37,260 
28,423 
Total assets
944,500 
950,261 
908,689 
Americas [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
1,070,824 
1,050,813 
947,147 
EMEA [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
256,699 
212,647 
180,551 
Operating Segments [Member] |
Americas [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
1,070,824 
1,050,813 
947,147 
Percentage of revenues
80.70% 
83.20% 
84.00% 
Depreciation, net
40,557 
37,818 
36,494 
Amortization of intangibles
14,396 
14,863 
10,479 
Income (loss) from continuing operations
113,549 
94,006 
93,580 
(Loss) from discontinued operations, net of taxes
 
 
(10,707)
Total assets
1,080,010 
1,097,788 
1,265,119 
Operating Segments [Member] |
EMEA [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
256,699 
212,647 
180,551 
Percentage of revenues
19.30% 
16.80% 
16.00% 
Depreciation, net
4,806 
4,266 
3,875 
Income (loss) from continuing operations
16,208 
6,052 
5,488 
(Loss) from discontinued operations, net of taxes
 
 
(820)
Total assets
1,373,590 
1,409,185 
1,100,938 
Other [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Income (loss) from continuing operations
(50,202)
(46,531)
(51,289)
Other (expense), net
(2,396)
(2,202)
(2,622)
Income taxes
(19,368)
(14,065)
(5,207)
Total assets
$ (1,509,100)
$ (1,556,712)
$ (1,457,368)
Segments and Geographic Information - Revenues by Segment from Major Customers (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Revenue, Major Customer [Line Items]
 
 
 
Amount
$ 1,327,523 
$ 1,263,460 
$ 1,127,698 
Americas [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
Amount
1,070,824 
1,050,813 
947,147 
EMEA [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
Amount
256,699 
212,647 
180,551 
AT&T Corporation [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
Amount
216,126 
166,401 
133,090 
AT&T Corporation [Member] |
Americas [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
Amount
212,607 
162,888 
130,072 
AT&T Corporation [Member] |
EMEA [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
Amount
$ 3,519 
$ 3,513 
$ 3,018 
AT&T Corporation [Member] |
Sales Revenue, Net [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
% of Revenues
16.30% 
13.20% 
11.80% 
AT&T Corporation [Member] |
Sales Revenue, Net [Member] |
Americas [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
% of Revenues
19.90% 
15.50% 
13.70% 
AT&T Corporation [Member] |
Sales Revenue, Net [Member] |
EMEA [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
% of Revenues
1.40% 
1.70% 
1.70% 
Segments and Geographic Information - Operations by Geographic Location (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
 
Revenues
$ 1,327,523 
$ 1,263,460 
$ 1,127,698 
Long-Lived assets
170,500 
193,604 
 
Goodwill
193,831 
199,802 
204,231 
Americas [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
1,070,824 
1,050,813 
947,147 
Long-Lived assets
159,362 
180,827 
 
Goodwill
193,831 
199,802 
204,231 
Americas [Member] |
United States [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
425,746 
388,775 
302,046 
Long-Lived assets
108,030 
120,759 
 
Americas [Member] |
Canada [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
195,739 
210,463 
198,585 
Long-Lived assets
16,257 
23,164 
 
Americas [Member] |
The Philippines [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
205,332 
213,132 
225,629 
Long-Lived assets
14,656 
17,197 
 
Americas [Member] |
Costa Rica [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
97,295 
101,888 
100,101 
Long-Lived assets
5,625 
4,759 
 
Americas [Member] |
El Salvador [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
52,609 
46,301 
46,910 
Long-Lived assets
3,298 
2,552 
 
Americas [Member] |
Australia [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
33,126 
36,725 
24,633 
Long-Lived assets
2,923 
3,799 
 
Americas [Member] |
Mexico [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
20,439 
23,701 
23,315 
Long-Lived assets
1,575 
1,902 
 
Americas [Member] |
Other [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
8,371 
4,350 
4,314 
Long-Lived assets
6,998 
6,695 
 
Americas [Member] |
China [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
32,167 
25,478 
21,614 
EMEA [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
256,699 
212,647 
180,551 
Long-Lived assets
11,138 
12,777 
 
EMEA [Member] |
Other [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
27,290 
24,540 
24,206 
Long-Lived assets
369 
334 
 
EMEA [Member] |
United Kingdom [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
42,328 
33,750 
35,833 
Long-Lived assets
3,871 
4,158 
 
EMEA [Member] |
Sweden [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
68,057 
49,953 
22,229 
Long-Lived assets
2,478 
3,676 
 
EMEA [Member] |
Germany [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
88,887 
77,950 
73,380 
Long-Lived assets
2,310 
2,097 
 
EMEA [Member] |
Romania [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
18,288 
14,856 
10,773 
Long-Lived assets
682 
679 
 
EMEA [Member] |
Slovakia [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Long-Lived assets
496 
666 
 
EMEA [Member] |
Norway [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Long-Lived assets
490 
603 
 
EMEA [Member] |
Hungary [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
8,723 
8,525 
7,619 
Long-Lived assets
442 
564 
 
EMEA [Member] |
Netherlands [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
$ 3,126 
$ 3,073 
$ 6,511 
Segments and Geographic Information - Revenues for the Company's Products and Services (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
 
Revenues
$ 1,327,523 
$ 1,263,460 
$ 1,127,698 
Outsourced Customer Contract Management Services [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
1,303,607 
1,240,328 
1,104,442 
Fulfillment Services [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
18,392 
16,953 
16,357 
Enterprise Support Services [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
$ 5,524 
$ 6,179 
$ 6,899 
Other (Expense) - Schedule of Other (Expense) (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Other Income (Expense) [Abstract]
 
 
 
Foreign currency transaction gains (losses)
$ (1,740)
$ (5,962)
$ (2,856)
Gains (losses) on foreign currency derivative instruments not designated as hedges
(44)
4,216 
(295)
Gains (losses) on liquidation of foreign subsidiaries
 
 
(582)
Other miscellaneous income (expense)
441 
985 
1,200 
Other (expense)
$ (1,343)
$ (761)
$ (2,533)
Related Party Transactions - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Jan. 31, 2008
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Related Party Transactions [Abstract]
 
 
 
 
Duration of lease
20 years 
 
 
 
Payment to landlord under the lease terms
 
$ 0.4 
$ 0.4 
$ 0.4 
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Allowance for Doubtful Accounts [Member]
 
 
 
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
Balance at Beginning of Period
$ 4,987 
$ 5,081 
$ 4,304 
Charged (Credited) to Costs and Expenses
(181)
483 
1,115 
Additions (Deductions)
(145)
(577)
(338)
Balance at End of Period
4,661 
4,987 
5,081 
Valuation Allowance for Net Deferred Tax Assets [Member]
 
 
 
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
Balance at Beginning of Period
42,664 
43,298 
38,544 
Charged (Credited) to Costs and Expenses
(8,518)
(634)
4,754 
Balance at End of Period
34,146 
42,664 
43,298 
Reserves for Value Added Tax Receivables [Member]
 
 
 
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
Balance at Beginning of Period
2,530 
3,076 
2,355 
Charged (Credited) to Costs and Expenses
(638)
143 
546 
Additions (Deductions)
(1,617)
(689)
175 
Balance at End of Period
$ 275 
$ 2,530 
$ 3,076