SYKES ENTERPRISES INC, 10-K filed on 2/29/2016
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2015
Feb. 10, 2016
Jun. 30, 2015
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2015 
 
 
Document Fiscal Year Focus
2015 
 
 
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
 
42,784,966 
 
Entity Public Float
 
 
$ 1,008,374,946 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 235,358 
$ 215,137 
Receivables, net
277,096 
290,397 
Prepaid expenses
17,321 
14,896 
Other current assets
33,262 
29,656 
Total current assets
563,037 
550,086 
Property and equipment, net
111,962 
109,880 
Goodwill, net
195,733 
193,831 
Intangibles, net
50,896 
60,620 
Deferred charges and other assets
26,144 
30,083 
Total assets
947,772 
944,500 
Current liabilities:
 
 
Accounts payable
23,255 
25,523 
Accrued employee compensation and benefits
77,246 
82,072 
Current deferred income tax liabilities
1,120 
144 
Income taxes payable
1,959 
3,662 
Deferred revenue
28,119 
34,245 
Other accrued expenses and current liabilities
21,476 
22,216 
Total current liabilities
153,175 
167,862 
Deferred grants
4,810 
5,110 
Long-term debt
70,000 
75,000 
Long-term income tax liabilities
18,512 
20,630 
Other long-term liabilities
22,595 
17,680 
Total liabilities
269,092 
286,282 
Commitments and loss contingency (Note 22)
   
   
Shareholders' equity:
 
 
Preferred stock, $0.01 par value per share, 10,000 shares authorized; no shares issued and outstanding
   
   
Common stock, $0.01 par value per share, 200,000 shares authorized; 42,785 and 43,291 shares issued, respectively
428 
433 
Additional paid-in capital
275,380 
279,288 
Retained earnings
458,325 
400,514 
Accumulated other comprehensive income (loss)
(53,662)
(20,561)
Treasury stock at cost: 113 and 132 shares, respectively
(1,791)
(1,456)
Total shareholders' equity
678,680 
658,218 
Total liabilities and shareholders' equity
$ 947,772 
$ 944,500 
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2015
Dec. 31, 2014
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
42,785,000 
43,291,000 
Treasury stock, shares
113,000 
132,000 
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Statement [Abstract]
 
 
 
Revenues
$ 1,286,340 
$ 1,327,523 
$ 1,263,460 
Operating expenses:
 
 
 
Direct salaries and related costs
836,516 
892,110 
855,266 
General and administrative
297,257 
298,129 
297,519 
Depreciation, net
43,752 
45,363 
42,084 
Amortization of intangibles
14,170 
14,396 
14,863 
Net (gain) loss on disposal of property and equipment
381 
(2,030)
201 
Total operating expenses
1,192,076 
1,247,968 
1,209,933 
Income from operations
94,264 
79,555 
53,527 
Other income (expense):
 
 
 
Interest income
668 
958 
866 
Interest (expense)
(2,465)
(2,011)
(2,307)
Other income (expense)
(2,484)
(1,343)
(761)
Total other income (expense)
(4,281)
(2,396)
(2,202)
Income before income taxes
89,983 
77,159 
51,325 
Income taxes
21,386 
19,368 
14,065 
Net income
$ 68,597 
$ 57,791 
$ 37,260 
Net income per common share:
 
 
 
Basic
$ 1.64 
$ 1.36 
$ 0.87 
Diluted
$ 1.62 
$ 1.35 
$ 0.87 
Weighted average common shares outstanding:
 
 
 
Basic
41,899 
42,609 
42,877 
Diluted
42,447 
42,814 
42,925 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
 
 
 
Net income
$ 68,597 
$ 57,791 
$ 37,260 
Other comprehensive income (loss), net of taxes:
 
 
 
Foreign currency translation gain (loss), net of taxes
(36,525)
(34,827)
(3,332)
Unrealized gain (loss) on net investment hedges, net of taxes
3,894 
3,959 
(1,118)
Unrealized actuarial gain (loss) related to pension liability, net of taxes
21 
(142)
(263)
Unrealized gain (loss) on cash flow hedging instruments, net of taxes
(416)
2,424 
(1,965)
Unrealized gain (loss) on postretirement obligation, net of taxes
(75)
28 
(181)
Other comprehensive income (loss), net of taxes
(33,101)
(28,558)
(6,859)
Comprehensive income (loss)
$ 35,496 
$ 29,233 
$ 30,401 
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, 2012
$ 606,264 
$ 438 
$ 277,192 
$ 315,187 
$ 14,856 
$ (1,409)
Beginning 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)
 
 
 
Issuance of common stock under equity award plans, net of shares withheld for employee taxes
(227)
(29)
 
 
(203)
Issuance of common stock under equity award plans, net of shares withheld for employee taxes, 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)
 
 
 
Issuance of common stock under equity award plans, net of shares withheld for employee taxes
(437)
(1)
(592)
 
 
156 
Issuance of common stock under equity award plans, net of shares withheld for employee taxes, 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 
 
 
 
 
Stock-based compensation expense
8,749 
 
8,749 
 
 
 
Excess tax benefit (deficiency) from stock-based compensation
422 
 
422 
 
 
 
Issuance of common stock under equity award plans, net of shares withheld for employee taxes
(3,326)
(3,159)
 
 
(171)
Issuance of common stock under equity award plans, net of shares withheld for employee taxes, shares
 
348 
 
 
 
 
Repurchase of common stock
(20,879)
 
 
 
 
(20,879)
Retirement of treasury stock
 
(9)
(9,920)
(10,786)
 
20,715 
Retirement of treasury stock, shares
 
(854)
 
 
 
 
Comprehensive income (loss)
35,496 
 
 
68,597 
(33,101)
 
Ending Balance at Dec. 31, 2015
$ 678,680 
$ 428 
$ 275,380 
$ 458,325 
$ (53,662)
$ (1,791)
Ending Balance, shares at Dec. 31, 2015
 
42,785 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Cash flows from operating activities:
 
 
 
Net income
$ 68,597 
$ 57,791 
$ 37,260 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
44,515 
46,255 
43,094 
Amortization of intangibles
14,170 
14,396 
14,863 
Amortization of deferred grants
(973)
(1,348)
(1,148)
Unrealized foreign currency transaction (gains) losses, net
318 
119 
6,302 
Stock-based compensation expense
8,749 
6,381 
4,873 
Excess tax (benefit) from stock-based compensation
(422)
 
 
Deferred income tax provision (benefit)
2,515 
4,865 
(362)
Net (gain) loss on disposal of property and equipment
381 
(2,030)
201 
Bad debt expense (reversals)
278 
(181)
483 
Write-downs (recoveries) of value added tax receivables
 
(638)
143 
Unrealized (gains) losses on financial instruments, net
1,028 
2,352 
(15)
Foreign exchange (gain) loss on liquidation of foreign entities
720 
113 
(83)
Amortization of deferred loan fees
403 
259 
259 
Net (gain) on insurance settlement
(919)
 
 
Proceeds from business interruption insurance settlement
156 
 
 
Imputed interest expense and fair value adjustments to contingent consideration
408 
 
 
Other
(106)
(10)
(116)
Changes in assets and liabilities, net of acquisition:
 
 
 
Receivables
2,499 
(40,276)
(22,062)
Prepaid expenses
(3,040)
336 
(3,931)
Other current assets
(6,972)
(6,673)
(1,177)
Deferred charges and other assets
1,951 
3,545 
(2,754)
Accounts payable
(124)
2,029 
(1,282)
Income taxes receivable / payable
(5,666)
2,609 
804 
Accrued employee compensation and benefits
(1,481)
5,179 
9,140 
Other accrued expenses and current liabilities
(1,564)
(5,026)
(2,025)
Deferred revenue
(2,559)
2,147 
2,826 
Other long-term liabilities
(2,398)
2,070 
925 
Net cash provided by operating activities
120,464 
94,264 
86,218 
Cash flows from investing activities:
 
 
 
Capital expenditures
(49,662)
(44,683)
(59,193)
Cash paid for business acquisition, net of cash acquired
(9,370)
 
 
Proceeds from sale of property and equipment
616 
3,639 
388 
Investment in restricted cash
(45)
(7)
(562)
Release of restricted cash
13 
160 
 
Proceeds from property and equipment insurance settlement
1,490 
 
 
Net cash (used for) investing activities
(56,958)
(40,891)
(59,367)
Cash flows from financing activities:
 
 
 
Payments of long-term debt
(10,000)
(23,000)
(25,000)
Proceeds from issuance of long-term debt
5,000 
 
32,000 
Proceeds from issuance of common stock
 
 
59 
Excess tax benefit from stock-based compensation
422 
 
 
Cash paid for repurchase of common stock
(20,879)
(12,581)
(5,479)
Proceeds from grants
670 
256 
201 
Payments on short-term debt
(323)
 
 
Shares repurchased for minimum tax withholding on equity awards
(3,326)
(437)
(227)
Cash paid for loan fees related to long-term debt
(962)
 
 
Net cash provided by (used for) financing activities
(29,398)
(35,762)
1,554 
Effects of exchange rates on cash and cash equivalents
(13,887)
(14,459)
(3,742)
Net increase (decrease) in cash and cash equivalents
20,221 
3,152 
24,663 
Cash and cash equivalents - beginning
215,137 
211,985 
187,322 
Cash and cash equivalents - ending
235,358 
215,137 
211,985 
Supplemental disclosures of cash flow information:
 
 
 
Cash paid during period for interest
1,476 
1,716 
2,149 
Cash paid during period for income taxes
30,467 
16,560 
16,889 
Non-cash transactions:
 
 
 
Property and equipment additions in accounts payable
4,941 
5,512 
6,002 
Unrealized gain (loss) on postretirement obligation in accumulated other comprehensive income (loss)
$ (75)
$ 28 
$ (181)
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, chat and digital self-service. 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, which includes 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 July 2015, the Company completed the acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”), pursuant to definitive Share Sale and Purchase Agreement, dated July 2, 2015. The Company has reflected the operating results in the Consolidated Statements of Operations since July 2, 2015. See Note 2, Acquisitions, for additional information on the acquisition.

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 1.6%, 1.4% and 1.3% of total consolidated revenues for the years ended December 31, 2015, 2014 and 2013, 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, 2015, 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, 2015.

Cash and Cash Equivalents — Cash and cash equivalents consist of cash and highly liquid short-term investments. Cash in the amount of $235.4 million and $215.1 million at December 31, 2015 and 2014, respectively, was primarily held in interest bearing investments, which have original maturities of less than 90 days. Cash and cash equivalents of $221.7 million and $194.4 million at December 31, 2015 and 2014, 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. The Company determined that its property and equipment were not impaired as of December 31, 2015.

 

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 Accounting Standards Codification (“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.

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.

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

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

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

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

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

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

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 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 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 24, Stock-Based Compensation. Stock-based awards under these plans may consist of common stock, stock options, cash-settled or stock-settled stock appreciation rights, restricted stock and other stock-based awards. The Company issues common stock and uses treasury stock to satisfy stock option exercises or vesting of stock awards.

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

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

 

   

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

 

   

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

 

   

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

 

   

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

Fair Value Measurements  ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles

and expands disclosures about fair value measurements. ASC 820-10-20 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

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

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

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

 

   

Level 1  Quoted prices for identical instruments in active markets.

 

   

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

 

   

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

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

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

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

Money market and open-end mutual funds — The Company uses quoted market prices in active markets to determine the fair value. These items are classified in Level 1 of the fair value hierarchy.

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

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 11, Investments Held in Rabbi Trust, and Note 24, 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.

 

Contingent consideration  The Company uses significant unobservable inputs to determine the fair value of contingent consideration, which is classified in Level 3 of the fair value hierarchy. The contingent consideration was recognized at fair value using a discounted cash flow methodology and a discount rate of 14.0%. The discount rate is dependent on the specific risks of the acquisition including the country of operation, the nature of services and complexity of the acquired business, and other similar factors, all of which are significant inputs not observable in the market. Significant increases or decreases in any of the inputs in isolation would result in a significantly higher or lower fair value measurement.

Foreign Currency Translation — The assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is other than the U.S. Dollar, are translated at the exchange rates in effect on the 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, 2015 and 2014, all hedges were determined to be highly effective.

The Company also periodically enters into forward contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to reduce the effects from fluctuations caused by volatility in currency exchange rates on the Company’s operating results and cash flows. Changes in the fair value of the derivative instruments are included in “Revenues” or “Other income (expense)”, depending on the underlying risk exposure. See Note 10, 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 May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date” (“ASU 2015-14”). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. An entity should apply the amendments using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company is currently evaluating the methods of adoption and 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 (“ASC”) 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; early adoption is permitted. Entities may apply the amendments either (1) prospective to all awards granted or modified after the effective date or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

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. These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments either prospectively or retrospectively to all prior periods presented in the financial statements. The adoption of ASU 2015-01 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) Amendments to the Consolidation Analysis)” (“ASU 2015-02”). These amendments are intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. These amendments affect the consolidation evaluation for reporting organizations. In addition, the amendments simplify and improve current U.S. GAAP by reducing the number of consolidation models. The amendments are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments using either a modified retrospective approach or retrospectively. The adoption of ASU 2015-02 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. These amendments are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Entities should apply the amendments retrospectively. The adoption of ASU 2015-03 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). These amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. These amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015; early adoption is permitted. Entities can adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The adoption of ASU 2015-05 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In September 2015, the FASB issued ASC 2015-16, “Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). These amendments eliminate the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. These amendments are effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2015-16 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In November 2015, the FASB issued ASC 2015-17, “Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). These amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The existing requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by these amendments. These amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. These amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted as of the beginning of the interim or annual reporting period. The Company has not yet determined whether to early adopt ASU 2015-17, or selected a transition method, and is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

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

In February 2016, the FASB issued ASC 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840 “Leases”. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its financial condition, results of operations and cash flows.

 

New Accounting Standards Recently Adopted

In April 2014, the FASB issued 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 will 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 August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30) Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” (“ASU 2015-15”). These amendments provide additional guidance to ASU 2015-03, which did not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 noted that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The adoption of ASU 2015-15 on August 18, 2015 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

Acquisitions
Acquisitions

Note 2. Acquisitions

Qelp Acquisition

On July 2, 2015, the Company’s wholly-owned subsidiaries, Sykes Enterprises Incorporated B.V. and Sykes Enterprises Incorporated Holdings B.V., both Netherlands companies, entered into a definitive Share Sale and Purchase Agreement (the “Purchase Agreement”) with MobileTimes B.V., Yarra B.V., From The Mountain Consultancy B.V. and Sticting Administratiekantoor Qelp (the “Sellers”), all of which are Netherlands companies, to acquire all of the outstanding shares of Qelp B.V. and its wholly owned subsidiary (together, known as “Qelp”.) The strategic acquisition of Qelp (the “Qelp acquisition”) was to further broaden and strengthen the Company’s service portfolio around digital self-service customer support and extend its reach into adjacent, but complementary, markets. Pursuant to Federal income tax regulations, no amount of intangibles or goodwill from this acquisition will be deductible for tax purposes. The results of Qelp’s operations have been included in the Company’s consolidated financial statements since its acquisition on July 2, 2015 (the “acquisition date”).

The consideration consists of an initial purchase price and a contingent purchase price. The initial purchase price of $9.8 million, including certain post-closing adjustments relating to Qelp’s working capital, was funded through cash on hand upon the closing of the transaction on July 2, 2015. The contingent purchase price to be paid over a three-year period is based on achieving targets tied to revenues and earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the years ended December 31, 2016, 2017 and 2018, not to exceed EUR 10.0 million.

As of the acquisition date, the total consideration paid or to be paid by the Company for the Qelp acquisition is summarized below (in thousands):

 

     Total  

Cash

   $ 9,885   

Contingent consideration

     6,000   

Working capital adjustment

     (65
  

 

 

 
   $ 15,820   
  

 

 

 

The fair value of the contingent consideration was estimated using the discounted cash flow method, and was included in “Other long-term liabilities” in the accompanying Consolidated Balance Sheet (see Note 4, Fair Value, for further information). As part of the discounted cash flow method, the Company calculated an adjusted weighted average cost of capital (“WACC”) specifically attributable to the future payments of the contingent consideration. Based on the forecasted revenue and profitability scenarios and their respective probabilities of occurrence, the Company estimated the present value of the probability-adjusted future payments utilizing an adjusted WACC for the potential future payments. The Company believes that its estimates and assumptions are reasonable, but there is significant judgment involved. Changes in the fair value of the contingent consideration liabilities subsequent to the acquisition will be recorded in the Company’s Consolidated Statements of Operations.

The Company accounted for the Qelp acquisition in accordance with ASC 805 (“ASC 805”) “Business Combinations,” whereby the fair value of the purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed from Qelp based on their estimated fair values as of the closing date. The Company completed its analysis of the purchase price allocation during the fourth quarter of 2015.

The following table summarizes the estimated acquisition date fair values of the assets acquired and liabilities assumed, all included in the EMEA segment (in thousands):

 

     July 2, 2015
(As Initially
Reported)
    Measurement
Period
Adjustments
    July 2, 2015
(As Adjusted)
 

Cash and cash equivalents

   $ 450      $ —        $ 450   

Receivables (1)

     1,541        (70     1,471   

Prepaid expenses

     24        —          24   
  

 

 

   

 

 

   

 

 

 

Total current assets

     2,015        (70     1,945   

Property and equipment

     2,168        —          2,168   

Goodwill

     9,574        480        10,054   

Intangibles

     6,000        —          6,000   

Deferred charges and other assets

     55        —          55   

Short-term debt

     (323     —          (323

Accrued employee compensation and benefits

     (207     —          (207

Income taxes payable

     (62     (32     (94

Deferred revenue

     (967     —          (967

Other accrued expenses and current liabilities

     (1,030     —          (1,030
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     (2,589     (32     (2,621

Other long-term liabilities (2)

     (1,403     (378     (1,781
  

 

 

   

 

 

   

 

 

 
   $ 15,820      $ —        $ 15,820   
  

 

 

   

 

 

   

 

 

 

 

(1)

The fair value equals the gross contractual value of the receivables.

 

(2)

Primarily includes long-term deferred tax liabilities.

Fair values are 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 July 2, 2015, the acquisition date (in thousands):

 

     Amount
Assigned
     Weighted
Average
Amortization
Period (years)
 

Customer relationships

   $ 5,400         7   

Trade name and trademarks

     100         3   

Content library

     500         2   
  

 

 

    
   $ 6,000         7   
  

 

 

    

 

The amount of Qelp’s revenues and net (loss) since the July 2, 2015 acquisition date, included in the Company’s Consolidated Statement of Operations for the year ended December 31, 2015 were as follows (in thousands):

 

     From
July 2,
2015 Through
December 31,
2015
 

Revenues

   $ 2,661   

Net (loss)

   $ (162

Merger and integration costs associated with Qelp included in “General and administrative” costs in the accompanying Consolidated Statement of Operations in the Other segment for the year ended December 31, 2015 were as follows (none in 2014 and 2013) (in thousands):

 

     Year Ended
December 31, 2015
 

Transaction costs

   $ 455   
  

 

 

 

Alpine Acquisition

The Company acquired 100% of the outstanding common shares and voting interest of Alpine Access, Inc. (“Alpine”) in August 2012.

Merger and integration costs associated with Alpine were as follows (none in 2015 and 2014) (in thousands):

 

     Year Ended
December 31,  2013
 

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

  

Americas

   $ 526   
  

 

 

 
     526   

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

  

Americas

     985   

Other

     159   
  

 

 

 
     1,144   

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

  

Other

     444   
  

 

 

 
     444   
  

 

 

 

Total merger and integration costs

   $ 2,114   
  

 

 

 

 

(1)

In the accompanying Consolidated Statements of Operations.

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

Note 3. 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 $15.3 million in cash through December 31, 2015 under these Exit Plans.

The cumulative costs expected and incurred as a result of the Exit Plans were as follows as of December 31, 2015 (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   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The following table summarizes the accrued liability associated with the Exit Plans’ exit or disposal activities and related charges (reversals) for the years ended December 31, 2015, 2014 and 2013 (in thousands):

 

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

Balance at January 1, 2013

   $ 3,772      $ 187      $ 10      $ 3,969   

Charges (reversals) (1)

     318        (56     —          262   

Cash payments

     (1,264     (8     (10     (1,282

Other non-cash changes (3)

     17        8        —          25   
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2013

     2,843        131        —          2,974   

Charges (reversals) (2)

     (185     (129     —          (314

Cash payments

     (1,095     —          —          (1,095

Other non-cash changes (3)

     (5     (2     —          (7
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2014

     1,558        —          —          1,558   

Charges (reversals)

     —          —          —          —     

Cash payments

     (825     —          —          (825

Other non-cash changes (3)

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2015

   $ 733      $ —        $ —        $ 733   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

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

 

(2)

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 in EMEA for the Ireland sites, which reduced “General and administrative” costs in the accompanying Consolidated Statement of Operations.

 

(3)

Effect of foreign currency translation.

 

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, 2015 and 2014 (in thousands):

 

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

December 31, 2015

        

Short-term accrued restructuring liability (1)

   $ 144       $ 487       $ 631   

Long-term accrued restructuring liability (2)

     22         80         102   
  

 

 

    

 

 

    

 

 

 

Ending accrual at December 31, 2015

   $ 166       $ 567       $ 733   
  

 

 

    

 

 

    

 

 

 

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   
  

 

 

    

 

 

    

 

 

 

 

(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. The EMEA Fourth Quarter 2011 and EMEA Fourth Quarter 2010 Exit Plans were settled during 2014.

Fair Value
Fair Value

Note 4. 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 as of December 31, 2015 (in thousands):

 

            Fair Value Measurements at December 31, 2015 Using:  
     Balance at      Quoted Prices
in Active
Markets For
Identical Assets
     Significant
Other
Observable
Inputs
     Significant
Unobservable
Inputs
 
     December 31, 2015      Level (1)      Level (2)      Level (3)  

Assets:

           

Foreign currency forward and option contracts included in “Other current assets” (1)

   $ 10,962       $ —         $ 10,962       $ —     

Equity investments held in a rabbi trust for the Deferred Compensation Plan (2)

     6,229         6,229         —           —     

Debt investments held in a rabbi trust for the Deferred Compensation Plan (2)

     1,622         1,622         —           —     

Guaranteed investment certificates (3)

     86         —           86         —     
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 18,899       $ 7,851       $ 11,048       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

           

Long-term debt (4)

   $ 70,000       $ —         $ 70,000       $ —     

Foreign currency forward and option contracts included in “Other accrued expenses and current liabilities” (1)

     835         —           835         —     

Contingent consideration included in “Other long-term liabilities” (5)

     6,280         —           —           6,280   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 77,115       $ —         $ 70,835       $ 6,280   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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 as of December 31, 2014 (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” (5)

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

Money market funds and open-end mutual funds included in “Deferred charges and other assets” (5)

     10         10         —           —     

Foreign currency forward and option contracts included in “Other current assets” (1)

     1,489         —           1,489         —     

Foreign currency forward contracts included in “Deferred charges and other assets” (1)

     4,060         —           4,060         —     

Equity investments held in a rabbi trust for the Deferred Compensation Plan (2)

     5,589         5,589         —           —     

Debt investments held in a rabbi trust for the Deferred Compensation Plan (2)

     1,363         1,363         —           —     

Guaranteed investment certificates (3)

     79         —           79         —     
  

 

 

    

 

 

    

 

 

    

 

 

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

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

           

Long-term debt (4)

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

Foreign currency forward and option contracts included in “Other accrued expenses and current liabilities” (1)

     1,261         —           1,261         —     
  

 

 

    

 

 

    

 

 

    

 

 

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

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

In the accompanying Consolidated Balance Sheets. See Note 10, Financial Derivatives.

 

(2)

Included in “Other current assets” in the accompanying Consolidated Balance Sheets. See Note 11, Investments Held in Rabbi Trust.

 

(3)

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

 

(4)

The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 18, Borrowings.

 

(5) 

In the accompanying Consolidated Balance Sheets.

A rollforward of the activity in the Company’s fair value of the contingent consideration is as follows (in thousands):

 

     Fair Value  

Balance at January 1, 2015

   $ —     

Acquisition (1)

     6,000   

Payments

     —     

Imputed interest/adjustments

     408   

Effect of foreign currency

     (128
  

 

 

 

Balance at December 31, 2015

   $ 6,280   
  

 

 

 

 

(1)

Related to the Qelp acquisition on July 2, 2015. See Note 2, Acquisitions.

The Company did not record any fair value adjustments to the contingent consideration as the key assumptions used to calculate the fair value at the acquisition date remained consistent at December 31, 2015. Should the assumptions regarding probability of achievement of certain revenue and EBITDA targets change in future periods, the change in fair value of the contingent consideration will be recognized in the accompanying Consolidated Statements of Operations. The Company accretes interest expense each period using the effective interest method until the contingent consideration reaches the estimated future value of $9.1 million. Interest expense related to the contingent consideration is included in “Interest (expense)” in the accompanying Consolidated Statements of Operations.

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, 2015 and 2014.

Goodwill and Intangible Assets
Goodwill and Intangible Assets

Note 5. Goodwill and Intangible Assets

Intangible Assets

The following table presents the Company’s purchased intangible assets as of December 31, 2015 (in thousands):

 

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

Customer relationships

   $ 102,594       $ (58,294   $ 44,300         8   

Trade names and trademarks

     11,698         (5,470     6,228         8   

Non-compete agreements

     1,190         (1,190     —           2   

Proprietary software

     850         (850     —           2   

Favorable lease agreement

     449         (449     —           2   

Content library

     491         (123     368         2   
  

 

 

    

 

 

   

 

 

    
   $ 117,272       $ (66,376   $ 50,896         8   
  

 

 

    

 

 

   

 

 

    

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 names and trademarks

     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 Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to December 31, 2015, is as follows (in thousands):

 

Years Ending December 31,

   Amount  

2016

   $ 14,489   

2017

     14,366   

2018

     8,198   

2019

     7,605   

2020

     5,104   

2021 and thereafter

     1,134   

Goodwill

Changes in goodwill for the year ended December 31, 2015 consist of the following (in thousands):

 

     January 1, 2015      Acquisition  (1)      Effect of Foreign
Currency
    December 31,
2015
 

Americas

   $ 193,831       $ —         $ (7,782   $ 186,049   

EMEA

     —           10,054         (370     9,684   
  

 

 

    

 

 

    

 

 

   

 

 

 
   $ 193,831       $ 10,054       $ (8,152   $ 195,733   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

(1)

See Note 2, Acquisitions, for further information.

 

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

 

     January 1, 2014      Acquisition      Effect of Foreign
Currency
    December 31,
2014
 

Americas

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

EMEA

     —           —           —          —     
  

 

 

    

 

 

    

 

 

   

 

 

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

 

 

    

 

 

    

 

 

   

 

 

 

The Company has five reporting units with goodwill and performs its annual goodwill impairment test during the third quarter, or more frequently, if indicators of impairment exist.

For the annual goodwill impairment test, the Company elected to forgo the option to first assess qualitative factors and performed its annual two-step goodwill impairment test as of July 31, 2015. 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.

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

 

   

Revenue projections, including revenue growth during the forecast periods;

 

   

EBITDA margin projections over the forecast periods;

 

   

Estimated income tax rates;

 

   

Estimated capital expenditures; and

 

   

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

As of July 31, 2015, the Company concluded that goodwill was not impaired for all five of the reporting units. While the fair values of four of the reporting units were substantially in excess of their carrying value, the Qelp reporting unit’s fair value approximated its carrying value due to the proximity to the acquisition date of July 2, 2015. The newly acquired Qelp reporting unit’s carrying value was $15.6 million at July 31, 2015, including $9.9 million of goodwill.

The Qelp reporting unit is at considerable risk for future impairment if projected operating results are not met or other inputs into the fair value measurement change. However, as of December 31, 2015, there is no impairment as the fair value of the reporting unit exceeds its carrying value by a small margin. The Company will continue to review the calculated fair value of this reporting unit until the fair value is substantially in excess of its carrying value.

Concentrations of Credit Risk
Concentrations of Credit Risk

Note 6. 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 10, Financial Derivatives, for a discussion of the Company’s credit risk relating to financial derivative instruments, and Note 25, Segments and Geographic Information, for a discussion of the Company’s customer concentration.

Receivables, Net
Receivables, Net

Note 7. Receivables, Net

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

 

     December 31,  
     2015     2014  

Trade accounts receivable

   $ 271,729      $ 290,711   

Income taxes receivable

     4,976        993   

Other

     3,965        3,354   
  

 

 

   

 

 

 
     280,670        295,058   

Less: Allowance for doubtful accounts

     3,574        4,661   
  

 

 

   

 

 

 
   $ 277,096      $ 290,397   
  

 

 

   

 

 

 

Allowance for doubtful accounts as a percent of trade receivables

     1.3     1.6
  

 

 

   

 

 

 
Prepaid Expenses
Prepaid Expenses

Note 8. Prepaid Expenses

Prepaid expenses consist of the following (in thousands):

 

     December 31,  
     2015      2014  

Prepaid maintenance

   $ 7,509       $ 5,315   

Prepaid insurance

     4,207         3,112   

Prepaid rent

     1,919         3,147   

Prepaid other

     3,686         3,322   
  

 

 

    

 

 

 
   $ 17,321       $ 14,896   
  

 

 

    

 

 

Other Current Assets
Other Current Assets

Note 9. Other Current Assets

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

 

     December 31,  
     2015      2014  

Deferred tax assets (Note 20)

   $ 12,009       $ 13,703   

Financial derivatives (Note 10)

     10,962         1,489   

Investments held in rabbi trust (Note 11)

     7,851         6,952   

Value added tax certificates

     —           6,303   

Other current assets

     2,440         1,209   
  

 

 

    

 

 

 
   $ 33,262       $ 29,656   
  

 

 

    

 

 

 
Financial Derivatives
Financial Derivatives

Note 10. 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 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)” (“AOCI”) in the accompanying Consolidated Balance Sheets are as follows (in thousands):

 

     December 31,  
     2015     2014  

Deferred gains (losses) in AOCI

   $ (558   $ (157

Tax on deferred gains (losses) in AOCI

     31        46   
  

 

 

   

 

 

 

Deferred gains (losses) in AOCI, net of taxes

   $ (527   $ (111
  

 

 

   

 

 

 

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

   $ (558  
  

 

 

   

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

Non-Designated Hedges — The Company also periodically enters into foreign currency hedge contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against adverse foreign currency moves relating primarily to intercompany receivables and payables, and other assets and liabilities that are denominated in currencies other than the Company’s subsidiaries’ functional currencies. These contracts generally do not exceed 180 days in duration. 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 Company had the following outstanding foreign currency forward contracts and options (in thousands):

 

     As of December 31, 2015      As of December 31, 2014  

Contract Type

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

Cash flow hedges:

           

Options:

           

Philippine Pesos

   $ 71,750         December 2016       $ 73,000         December 2015   

Forwards:

           

Costa Rican Colones

     34,500         November 2016         51,600         October 2015   

Romanian Leis

     —           —           10,414         December 2015   

Philippine Pesos

     —           —           9,000         March 2015   

Net investment hedges:

           

Forwards:

           

Euros

     63,470         March 2016         51,648         March 2016   

Non-designated hedges:

           

Forwards

     50,603         March 2016         64,541         March 2015   

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 $11.0 million and $5.5 million as of December 31, 2015 and 2014, 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 $10.2 million and $4.4 million, and liability positions of $0.1 million and $0.1 million as of December 31, 2015 and 2014, 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, 2015     December 31, 2014  
    Fair Value     Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

   

Foreign currency forward and option contracts (1)

  $ 544      $ 974   

Derivatives designated as net investment hedging instruments under ASC 815:

   

Foreign currency forward contracts (1)

    10,161        —     

Foreign currency forward contracts (2)

    —          4,060   
 

 

 

   

 

 

 
    10,705        5,034   

Derivatives not designated as hedging instruments under ASC 815:

   

Foreign currency forward contracts (1)

    257        515   
 

 

 

   

 

 

 

Total derivative assets

  $ 10,962      $ 5,549   
 

 

 

   

 

 

 
    Derivative Liabilities  
    December 31, 2015     December 31, 2014  
    Fair Value     Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

   

Foreign currency forward and option contracts (3)

  $ 396      $ 406   

Derivatives not designated as hedging instruments under ASC 815:

   

Foreign currency forward contracts (3)

    439        855   
 

 

 

   

 

 

 

Total derivative liabilities

  $ 835      $ 1,261   
 

 

 

   

 

 

 

 

(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, 2015, 2014 and 2013 (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
and Amount

Excluded from Effectiveness
Testing)
 
    December 31,     December 31,     December 31,  
    2015     2014     2013     2015     2014     2013     2015     2014     2013  

Derivatives designated as cash flow hedging instruments under ASC 815:

                 

Foreign currency forward and option contracts

  $ 1,696      $ (2,787   $ (2,823   $ 2,138      $ (5,339   $ (666   $ 12      $ (3   $ 119   

Derivatives designated as net investment hedging instruments under ASC 815:

                 

Foreign currency forward contracts

    6,101        6,344        (1,720     —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Foreign currency forward and option contracts

  $ 7,797      $ 3,557      $ (4,543   $ 2,138      $ (5,339   $ (666   $ 12      $ (3   $ 119   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Gain (Loss) Recognized  in
“Other income (expense)”
on Derivatives
 
     December 31,  
     2015      2014     2013  

Derivatives not designated as hedging instruments under ASC 815:

       

Foreign currency forward contracts

   $ 1,374       $ (44   $ 4,216   
  

 

 

    

 

 

   

 

 

 

Investments Held in Rabbi Trust
Investments Held in Rabbi Trust

Note 11. 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, 2015      December 31, 2014  
     Cost      Fair Value      Cost      Fair Value  

Mutual funds

   $ 6,217       $ 7,851       $ 5,160       $ 6,952   
  

 

 

    

 

 

    

 

 

    

 

 

 

The mutual funds held in the rabbi trust were 79% equity-based and 21% debt-based as of December 31, 2015. 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,
 
     2015     2014     2013  

Gross realized gains from sale of trading securities

   $ 356      $ 586      $ 160   

Gross realized (losses) from sale of trading securities

     (1     —          (10

Dividend and interest income

     79        58        279   

Net unrealized holding gains (losses)

     (597     (276     568   
  

 

 

   

 

 

   

 

 

 

Net investment income (losses)

   $ (163   $ 368      $ 997   
  

 

 

   

 

 

   

 

 

 

Property and Equipment
Property and Equipment

Note 12. Property and Equipment

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

 

     December 31,  
     2015      2014  

Land

   $ 3,447       $ 3,600   

Buildings and leasehold improvements

     96,926         94,786   

Equipment, furniture and fixtures

     291,993         293,857   

Capitalized internally developed software costs

     17,299         7,963   

Transportation equipment

     546         531   

Construction in progress

     8,703         8,071   
  

 

 

    

 

 

 
     418,914         408,808   

Less: Accumulated depreciation

     306,952         298,928   
  

 

 

    

 

 

 
   $ 111,962       $ 109,880   
  

 

 

    

 

 

 

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

 

     December 31,  
     2015      2014  

Capitalized internally developed software costs, net

   $ 8,135       $ 1,270   
  

 

 

    

 

 

 

Winter Storm Damage

In February 2015, customer contact management centers (the “facilities”) located in Perry County, Kentucky, Buchanan County, Virginia and Wise, Virginia experienced damage to the buildings and contents as a result of winter storms. The Company filed an insurance claim with its property insurance company to recover losses of $1.6 million. The Company received $0.5 million and $1.1 million in April 2015 and July 2015, respectively, for costs to clean up and repair the facilities and business interruption. The Company completed the necessary clean up and repairs. The claim was finalized during the third quarter of 2015, resulting in a $0.9 million net gain on insurance settlement included in “General and administrative” in the accompanying Consolidated Statement of Operations for the year ended December 31, 2015.

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, with a net carrying value of $0.5 million, for cash of $3.1 million (net of selling costs of $0.2 million). This resulted 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.

Deferred Charges and Other Assets
Deferred Charges and Other Assets

Note 13. Deferred Charges and Other Assets

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

 

     December 31,  
     2015      2014  

Non-current mandatory tax security deposits (Note 20)

   $ 13,418       $ 15,906   

Rent and other deposits

     3,803         3,215   

Non-current deferred tax assets (Note 20)

     1,899         1,681   

Non-current value added tax receivables

     673         856   

Foreign currency forward contracts (Note 10)

     —           4,060   

Other

     6,351         4,365   
  

 

 

    

 

 

 
   $ 26,144       $ 30,083   
  

 

 

    

 

 

Accrued Employee Compensation and Benefits
Accrued Employee Compensation and Benefits

Note 14. Accrued Employee Compensation and Benefits

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

 

     December 31,  
     2015      2014  

Accrued compensation

   $ 28,215       $ 32,786   

Accrued bonus and commissions

     17,754         18,590   

Accrued vacation

     16,439         16,613   

Accrued employment taxes

     8,465         9,362   

Other

     6,373         4,721   
  

 

 

    

 

 

 
   $ 77,246       $ 82,072   
  

 

 

    

 

 

Deferred Revenue
Deferred Revenue

Note 15. Deferred Revenue

Deferred revenue consists of the following (in thousands):

 

     December 31,  
     2015      2014  

Future service

   $ 22,112       $ 25,222   

Estimated potential penalties and holdbacks

     6,007         9,023   
  

 

 

    

 

 

 
   $ 28,119       $ 34,245   
  

 

 

    

 

 

 

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

Note 16. Other Accrued Expenses and Current Liabilities

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

 

     December 31,  
     2015      2014  

Accrued legal and professional fees

   $ 3,079       $ 4,508   

Accrued rent

     1,812         640   

Accrued roadside assistance claim costs

     1,405         1,878   

Accrued telephone charges

     1,381         1,068   

Accrued utilities

     1,097         1,329   

Accrued equipment and software

     935         2,196   

Foreign currency forward and option contracts (Note 10)

     835         1,261   

Customer deposits

     714         793   

Accrued restructuring (Note 3)

     631         630   

Other

     9,587         7,913   
  

 

 

    

 

 

 
   $ 21,476       $ 22,216   
  

 

 

    

 

 

Deferred Grants
Deferred Grants

Note 17. Deferred Grants

Deferred grants consist of the following (in thousands):

 

     December 31,  
     2015     2014  

Property grants

   $ 4,377      $ 5,110   

Lease grants

     513        —     

Employment grants

     149        207   
  

 

 

   

 

 

 

Total deferred grants

     5,039        5,317   

Less: Property grants — short-term (1)

     —          —     

Less: Lease grants — short-term (1)

     (80     —     

Less: Employment grants — short-term (1)

     (149     (207
  

 

 

   

 

 

 

Total long-term deferred grants

   $ 4,810      $ 5,110   
  

 

 

   

 

 

 

 

(1)

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

Borrowings
Borrowings

Note 18. Borrowings

On May 12, 2015, the Company entered into a $440 million revolving credit facility (the “2015 Credit Agreement”) with a group of lenders and KeyBank National Association, as Lead Arranger, Sole Book Runner, Administrative Agent, Swing Line Lender and Issuing Lender (“KeyBank”). The 2015 Credit Agreement replaced the Company’s previous $245 million revolving credit facility dated May 3, 2012 (the “2012 Credit Agreement”), as amended, which agreement was terminated simultaneous with entering into the 2015 Credit Agreement. The 2015 Credit Agreement is subject to certain borrowing limitations and includes certain customary financial and restrictive covenants.

The 2015 Credit Agreement includes a $200 million alternate-currency sub-facility, a $10 million swingline sub-facility and a $35 million letter of credit sub-facility, and may be used for general corporate purposes including acquisitions, share repurchases, working capital support and letters of credit, subject to certain limitations. The Company is not currently aware of any inability of its lenders to provide access to the full commitment of funds that exist under the revolving credit facility, if necessary. However, there can be no assurance that such facility will be available to the Company, even though it is a binding commitment of the financial institutions.

Borrowings consist of the following (in thousands):

 

     December 31,  
     2015      2014  

Revolving credit facility

   $ 70,000       $ 75,000   

Less: Current portion

     —           —     
  

 

 

    

 

 

 

Total long-term debt

   $ 70,000       $ 75,000   
  

 

 

    

 

 

 

The 2015 Credit Agreement matures on May 12, 2020 and has no varying installments due.

Borrowings under the 2015 Credit Agreement will bear interest at either LIBOR or the base rate plus, in each case, an applicable margin based on the Company’s leverage ratio. The applicable interest rate will be determined quarterly based on the Company’s leverage ratio at such time. The base rate is a rate per annum equal to the greatest of (i) the rate of interest established by KeyBank, from time to time, as its “prime rate”; (ii) the Federal Funds effective rate in effect from time to time, plus 1/2 of 1% per annum; and (iii) the then-applicable LIBOR rate for one month interest periods, plus 1.00%. Swingline loans will bear interest only at the base rate plus the base rate margin.

In addition, the Company is required to pay certain customary fees, including a commitment fee of 0.125%, which is due quarterly in arrears and calculated on the average unused amount of the 2015 Credit Agreement.

 

The 2015 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 2015, the Company paid an underwriting fee of $0.9 million for the 2015 Credit Agreement, which is deferred and amortized over the term of the loan, along with the deferred loan fees of $0.4 million related to the 2012 Credit Agreement. The Company expensed $0.1 million of the remaining deferred loan fees related to the 2012 Credit Agreement.

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

 

     Years Ended December 31,  
     2015     2014     2013  

Average daily utilization

   $ 69,964      $ 85,874      $ 102,512   

Interest expense, including commitment fee (1)

   $ 1,307      $ 1,425      $ 1,765   

Weighted average interest rate

     1.9     1.7     1.7

 

(1)

Excludes the amortization of deferred loan fees.

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

Note 19. 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, 2013

   $ 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

Pre-tax amount

     (37,178     6,101        121        1,708        (12     (29,260

Tax (provision) benefit

     —          (2,207     (2     32        —          (2,177

Reclassification of (gain) loss to net income

     647        —          (53     (2,195     (63     (1,664

Foreign currency translation

     6        —          (45     39        —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2015

   $ (58,601   $ 4,170      $ 1,029      $ (527   $ 267      $ (53,662
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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

 

     Years Ended December 31,    

Statements of Operations Location

     2015     2014     2013      

Foreign Currency Translation Gain (Loss): (1)

        

Pre-tax amount

   $ (647   $ —        $ —        Other income (expense)

Tax (provision) benefit

     —          —          —        Income taxes
  

 

 

   

 

 

   

 

 

   

Reclassification to net income

     (647     —          —       

Actuarial Gain (Loss) Related to Pension Liability: (2)

        

Pre-tax amount

     41        50        60      Direct salaries and related costs

Tax (provision) benefit

     12        (15     (19   Income taxes
  

 

 

   

 

 

   

 

 

   

Reclassification to net income

     53        35        41     

Gain (Loss) on Cash Flow Hedging Instruments: (3)

        

Pre-tax amount

     2,150        (5,342     (547   Revenues

Tax (provision) benefit

     45        105        226      Income taxes
  

 

 

   

 

 

   

 

 

   

Reclassification to net income

     2,195        (5,237     (321  

Gain (Loss) on Post Retirement Obligation: (2)

        

Pre-tax amount

     63        49        54      General and administrative

Tax (provision) benefit

     —          —          —        Income taxes
  

 

 

   

 

 

   

 

 

   

Reclassification to net income

     63        49        54     
  

 

 

   

 

 

   

 

 

   

Total reclassification of gain (loss) to net income

   $ 1,664      $ (5,153   $ (226  
  

 

 

   

 

 

   

 

 

   

 

(1) 

See Note 26, Other Income (Expense), for further information.

 

(2) 

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

 

(3) 

See Note 10, Financial Derivatives, for further information.

Except as discussed in Note 20, 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 20. Income Taxes

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

 

     Years Ended December 31,  
     2015      2014      2013  

Domestic (U.S., state and local)

   $ 41,178       $ 28,563       $ 5,544   

Foreign

     48,805         48,596         45,781   
  

 

 

    

 

 

    

 

 

 

Total income before income taxes

   $ 89,983       $ 77,159       $ 51,325   
  

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2015     2014     2013  

Current:

      

U.S. federal

   $ 7,374      $ 2,579      $ 881   

State and local

     1,051        542        82   

Foreign

     10,446        11,382        13,464   
  

 

 

   

 

 

   

 

 

 

Total current provision for income taxes

     18,871        14,503        14,427   
  

 

 

   

 

 

   

 

 

 

Deferred:

      

U.S. federal

     3,873        5,437        866   

State and local

     (1,227     (446     —     

Foreign

     (131     (126     (1,228
  

 

 

   

 

 

   

 

 

 

Total deferred provision (benefit) for income taxes

     2,515        4,865        (362
  

 

 

   

 

 

   

 

 

 

Total provision for income taxes

   $ 21,386      $ 19,368      $ 14,065   
  

 

 

   

 

 

   

 

 

 

 

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,  
     2015     2014     2013  

Net operating loss and tax credit carryforwards

   $ 3,564      $ 19,335      $ 8,029   

Accrued expenses/liabilities

     2,856        (4,505     954   

Depreciation and amortization

     (2,231     (6,220     (5,030

Valuation allowance

     (1,958     (3,706     (1,887

Deferred statutory income

     266        (29     (2,425

Other

     18        (10     (3
  

 

 

   

 

 

   

 

 

 

Total deferred provision (benefit) for income taxes

   $ 2,515      $ 4,865      $ (362
  

 

 

   

 

 

   

 

 

 

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,  
     2015     2014     2013  

Tax at U.S. federal statutory tax rate

   $ 31,494      $ 27,005      $ 17,964   

State income taxes, net of federal tax benefit

     (177     934        82   

Foreign rate differential

     (14,030     (13,164     (9,319

Tax holidays

     (4,031     (2,749     (4,686

Permanent differences

     11,737        10,170        9,051   

Tax credits

     (4,102     (4,894     (5,020

Foreign withholding and other taxes

     2,321        2,541        4,643   

Change in valuation allowance, net of related adjustments

     (631     (7     1,354   

Changes in uncertain tax positions

     (1,858     (468     (4

Other

     663        —          —     
  

 

 

   

 

 

   

 

 

 

Total provision for income taxes

   $ 21,386      $ 19,368      $ 14,065   
  

 

 

   

 

 

   

 

 

 

Withholding taxes on offshore cash movements assessed by certain foreign governments of $1.7 million, $1.8 million and $4.1 million were included in the provision for income taxes in the accompanying Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013, respectively.

Earnings associated with the investments in the Company’s foreign subsidiaries of $399.0 million at December 31, 2015 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 related to these investments in foreign subsidiaries 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 2016 through 2028. In some cases, the tax holidays expire without possibility of renewal. In other cases, the Company expects to renew these tax holidays, but there are no assurances from the respective foreign governments that they will renew them. This could potentially result in future adverse tax consequences in the local jurisdiction, the impact of which is not practicable to estimate due to the inherent complexity of estimating critical variables such as long-term future profitability, tax regulations and rates in the multi-national tax environment in which the Company operates. The Company’s tax holidays decreased the provision for income taxes by $4.0 million ($0.09 per diluted share), $2.7 million ($0.06 per diluted share) and $4.7 million ($0.11 per diluted share) for the years ended December 31, 2015, 2014 and 2013, 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,  
     2015     2014  

Deferred tax assets:

    

Net operating loss and tax credit carryforwards

   $ 32,328      $ 35,400   

Valuation allowance

     (30,065     (34,146

Accrued expenses

     24,276        25,694   

Deferred revenue

     3,193        3,757   

Depreciation and amortization

     953        835   

Other

     54        —     
  

 

 

   

 

 

 
     30,739        31,540   
  

 

 

   

 

 

 

Deferred tax liabilities:

    

Depreciation and amortization

     (19,826     (20,172

Deferred statutory income

     (579     (772

Accrued liabilities

     (1,104     (141

Other

     (119     (1
  

 

 

   

 

 

 
     (21,628     (21,086
  

 

 

   

 

 

 

Net deferred tax assets

   $ 9,111      $ 10,454   
  

 

 

   

 

 

 
     December 31,  
     2015     2014  

Classified as follows:

    

Other current assets (Note 9)

   $ 12,009      $ 13,703   

Deferred charges and other assets (Note 13)

     1,899        1,681   

Current deferred income tax liabilities

     (1,120     (144

Other long-term liabilities

     (3,677     (4,786
  

 

 

   

 

 

 

Net deferred tax assets

   $ 9,111      $ 10,454   
  

 

 

   

 

 

 

There are approximately $153.5 million of income tax loss carryforwards as of December 31, 2015, with varying expiration dates, approximately $113.6 million relating to foreign operations and $39.9 million relating to U.S. state operations. With respect to foreign operations, $94.4 million of the net operating loss carryforwards have an indefinite expiration date and the remaining $19.2 million net operating loss carryforwards have varying expiration dates through December 2036. Regarding the U.S. state and foreign aforementioned tax loss carryforwards, no benefit has been recognized for $14.0 million and $104.0 million, respectively, as the Company does not anticipate that the losses will more likely than not be fully utilized.

The Company has accrued $8.1 million and $13.3 million as of December 31, 2015 and 2014, respectively, excluding penalties and interest, for the liability for unrecognized tax benefits. The decrease is primarily due to the recognition of $2.2 million of tax benefits resulting from the expiration of the statute of limitations, as previously mentioned, and the effects of foreign exchange rate adjustments. As of December 31, 2014, $2.7 million of unrecognized tax benefits were recorded to “Deferred charges and other assets” in the accompanying Consolidated Balance Sheets in accordance with 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.” The $8.1 million and the remaining $10.6 million of the unrecognized tax benefits at December 31, 2015 and 2014, respectively, are recorded in “Long-term income tax liabilities” in the accompanying Consolidated Balance Sheets. Had the Company recognized these tax benefits, approximately $8.1 million and $13.3 million, and the related interest and penalties, would have favorably impacted the effective tax rate in 2015 and 2014, respectively. The Company does not anticipate that any of the unrecognized tax benefits will be recognized in the next twelve months.

The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company had $10.4 million and $10.1 million accrued for interest and penalties as of December 31, 2015 and 2014, respectively. Of the accrued interest and penalties at December 31, 2015 and 2014, $3.4 million and $3.3 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, 2015, 2014 and 2013 was $0.3 million, $(0.5) million and $0.4 million, respectively.

 

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

 

     Years Ended December 31,  
     2015     2014     2013  

Gross unrecognized tax benefits as of January 1,

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

Decreases due to lapse in applicable statute of limitations

     (2,206     —          (390

Foreign currency translation increases (decreases)

     (2,963     (1,706     (1,516
  

 

 

   

 

 

   

 

 

 

Gross unrecognized tax benefits as of December 31,

   $ 8,116      $ 13,285      $ 14,991   
  

 

 

   

 

 

   

 

 

 

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 the effects of foreign exchange rate adjustments, were $13.4 million and $15.9 million as of December 31, 2015 and 2014, 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 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, 2015:

 

Tax Jurisdiction

  

Tax Year Ended

Canada    2003 to present
United States (1)    2012 to present

 

(1) 

The 2002 to 2011 tax years are open to the extent of the tax credit carryforward amounts.

Earnings Per Share
Earnings Per Share

Note 21. Earnings Per Share

Basic earnings per share is 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,  
     2015      2014      2013  

Basic:

        

Weighted average common shares outstanding

     41,899         42,609         42,877   

Diluted:

        

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

     548         205         48   
  

 

 

    

 

 

    

 

 

 

Total weighted average diluted shares outstanding

     42,447         42,814         42,925   
  

 

 

    

 

 

    

 

 

 

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

     20         37         42   
  

 

 

    

 

 

    

 

 

 

On August 18, 2011, the Company’s Board of Directors (the “Board”) authorized the Company to purchase up to 5.0 million shares of its outstanding common stock (the “2011 Share Repurchase Program”). A total of 4.9 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, 2015

     860       $ 22.81       $ 25.00       $ 20,879   

December 31, 2014

     630       $ 19.80       $ 20.00       $ 12,581   

December 31, 2013

     341       $ 15.61       $ 16.99       $ 5,479   

Commitments and Loss Contingency
Commitments and Loss Contingency

Note 22. Commitments and Loss Contingency

Lease and Purchase Commitments

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

 

     Years Ended December 31,  
     2015      2014      2013  

Rental expense

   $ 47,208       $ 44,916       $ 47,365   
  

 

 

    

 

 

    

 

 

 

The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of December 31, 2015 (in thousands):

 

     Amount  

2016

   $ 38,318   

2017

     33,923   

2018

     27,641   

2019

     22,480   

2020

     16,423   

2021 and thereafter

     30,973   
  

 

 

 

Total minimum payments required

   $ 169,758   
  

 

 

 

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

The following is a schedule of future minimum purchases remaining under the agreements as of December 31, 2015 (in thousands):

 

     Amount  

2016

   $ 41,806   

2017

     15,975   

2018

     1,718   

2019

     1,477   

2020

     857   

2021 and thereafter

     470   
  

 

 

 

Total minimum payments required

   $ 62,303   
  

 

 

 

On July 2, 2015, the Company completed the Qelp acquisition, which included contingent consideration based on achieving targets tied to revenues and EBITDA for the years ended December 31, 2016, 2017 and 2018. The estimated future value of the contingent consideration is $9.1 million and is expected to be paid over a three-year period.

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 the Company 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 23. Defined Benefit Pension Plan and Postretirement Benefits

Defined Benefit Pension Plans

The Company sponsors non-contributory defined benefit pension plans (the “Pension Plans”) for its covered employees in The Philippines. The Pension Plans provide defined benefits based on years of service and final salary. All permanent employees meeting the minimum service requirement are eligible to participate in the Pension Plans. As of December 31, 2015, the Pension Plans were unfunded. The Company expects to make no cash contributions to its Pension Plans during 2016.

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,  
     2015     2014  

Beginning benefit obligation

   $ 3,100      $ 2,481   

Service cost

     433        387   

Interest cost

     135        104   

Actuarial (gains) losses

     (121     50   

Effect of foreign currency translation

     (138     78   
  

 

 

   

 

 

 

Ending benefit obligation

   $ 3,409      $ 3,100   
  

 

 

   

 

 

 
    

Unfunded status

     (3,409     (3,100
  

 

 

   

 

 

 

Net amount recognized

   $ (3,409   $ (3,100
  

 

 

   

 

 

 

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,
         2015            2014            2013    

Discount rate

   5.0 - 5.4%    4.5 - 4.9%    4.3 - 5.2%

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,  
     2015     2014     2013  

Service cost

   $ 433      $ 387      $ 392   

Interest cost

     135        104        137   

Recognized actuarial (gains)

     (41     (50     (60
  

 

 

   

 

 

   

 

 

 

Net periodic benefit cost

     527        441        469   

Unrealized net actuarial (gains), net of tax

     (1,029     (1,008     (1,150
  

 

 

   

 

 

   

 

 

 

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

   $ (502   $ (567   $ (681
  

 

 

   

 

 

   

 

 

 

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

 

Years Ending December 31,

   Amount  

2016

   $ 143   

2017

     69   

2018

     45   

2019

     253   

2020

     157   

2021 - 2025

     964   

The Company expects to recognize less than $0.1 million of net actuarial gains as a component of net periodic benefit cost in 2016.

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,  
     2015      2014      2013  

401(k) plan contributions

   $ 832       $ 870       $ 895   
  

 

 

    

 

 

    

 

 

 

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,  
     2015      2014  

Postretirement benefit obligation

   $ 37       $ 46   

Unrealized gains (losses) in AOCI (1)

     267         342   

 

(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 24. 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,  
     2015     2014     2013  

Stock-based compensation (expense) (1)

   $ (8,749   $ (6,381   $ (4,873

Income tax benefit (2)

     3,281        2,233        1,706   

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

     422        (82     (187

 

(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, 2015, 2014 and 2013.

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,  
     2015     2014     2013  

Expected volatility

     34.1     38.9     45.2

Weighted-average volatility

     34.1     38.9     45.2

Expected dividend rate

     0.0     0.0     0.0

Expected term (in years)

     5.0        5.0        5.0   

Risk-free rate

     1.6     1.7     0.8

The following table summarizes SARs activity as of December 31, 2015 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, 2015

     959      $ —           

Granted

     217      $ —           

Exercised

     (695   $ —           

Forfeited or expired

     —        $ —           
  

 

 

         

Outstanding at December 31, 2015

     481      $ —           8.1       $ 4,366   
  

 

 

   

 

 

    

 

 

    

 

 

 

Vested or expected to vest at December 31, 2015

     481      $ —           8.1       $ 4,366   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at December 31, 2015

     57      $ —           4.7       $ 508   
  

 

 

   

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2015      2014      2013  

Number of SARs granted

     217         246         318   

Weighted average grant-date fair value per SAR

   $ 8.17       $ 7.20       $ 6.08   

Intrinsic value of SARs exercised

   $ 5,957       $ 391       $ 488   

Fair value of SARs vested

   $ 1,302       $ 1,553       $ 1,298   

The following table summarizes nonvested SARs activity as of December 31, 2015 and for the year then ended:

 

Nonvested Stock Appreciation Rights

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

Nonvested at January 1, 2015

     411      $ 6.61   

Granted

     217      $ 8.17   

Vested

     (204   $ 6.41   

Forfeited or expired

     —        $ —     
  

 

 

   

Nonvested at December 31, 2015

     424      $ 7.50   
  

 

 

   

As of December 31, 2015, there was $2.0 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested SARs granted under the 2011 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) 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, 2015 and for the year then ended:

 

Nonvested Restricted Shares and RSUs

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

Nonvested at January 1, 2015

     1,194      $ 16.80   

Granted

     441      $ 25.06   

Vested

     (125   $ 16.10   

Forfeited or expired

     (264   $ 15.71   
  

 

 

   

Nonvested at December 31, 2015

     1,246      $ 20.03   
  

 

 

   

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

 

     Years Ended December 31,  
     2015      2014      2013  

Number of restricted shares/RSUs granted

     441         500         706   

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

   $ 25.06       $ 19.77       $ 15.25   

Fair value of restricted shares/RSUs vested

   $ 2,019       $ 895       $ 366   

As of December 31, 2015, based on the probability of achieving the performance goals, there was $14.6 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted shares/RSUs granted under the 2011 Plan. This cost is expected to be recognized over a weighted average period of 1.7 years.

 

Non-Employee Director Fee Plan The Company’s 2004 Non-Employee Director Fee Plan (the “2004 Fee Plan”), as amended on May 17, 2012, 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.

At the Board’s regularly scheduled meeting on December 9, 2014, upon the recommendation of the Compensation Committee, the Board determined that the amount of the cash and equity compensation payable to non-employee directors beginning on the date of the 2015 annual shareholder meeting would be increased as follows: cash compensation would be increased by $5,000 per year to a total of $55,000 and equity compensation would be increased by $25,000 per year to a total of $100,000. No change would be made in the additional amounts payable to the Chairman of the Board or the Chairs or members of the various Board committees for their service on such committees, and no changes would be made in the payment terms described above for such cash and equity compensation.

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, 2015 and for the year then ended:

 

Nonvested Common Stock Share Awards

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

Nonvested at January 1, 2015

     12      $ 20.24   

Granted

     32      $ 24.70   

Vested

     (33   $ 23.43   

Forfeited or expired

     —        $ —     
  

 

 

   

Nonvested at December 31, 2015

     11      $ 23.74   
  

 

 

   

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

 

     Years Ended December 31,  
     2015      2014      2013  

Number of share awards granted

     32         36         37   

Weighted average grant-date fair value per share award

   $ 24.70       $ 20.15       $ 16.01   

Fair value of share awards vested

   $ 790       $ 630       $ 669   

As of December 31, 2015, 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 0.3 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 11, Investments Held in Rabbi Trust). As of December 31, 2015 and 2014, liabilities of $7.9 million and $7.0 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 $1.6 million and $1.5 million at December 31, 2015 and 2014, respectively, is included in “Treasury stock” in the accompanying Consolidated Balance Sheets.

 

The following table summarizes nonvested common stock activity as of December 31, 2015 and for the year then ended:

 

Nonvested Common Stock

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

Nonvested at January 1, 2015

     5      $ 17.88   

Granted

     8      $ 25.06   

Vested

     (10   $ 23.12   

Forfeited or expired

     —        $ —     
  

 

 

   

Nonvested at December 31, 2015

     3      $ 19.53   
  

 

 

   

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

 

     Years Ended December 31,  
     2015      2014      2013  

Number of shares of common stock granted

     8         10         13   

Weighted average grant-date fair value per common stock

   $ 25.06       $ 20.54       $ 16.76   

Fair value of common stock vested

   $ 244       $ 212       $ 257   

Cash used to settle the obligation

   $ 65       $ 1,493       $ 1,014   

As of December 31, 2015, 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 2.0 years.

Segments and Geographic Information
Segments and Geographic Information

Note 25. Segments and Geographic Information

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

The reportable segments consist of (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, and provides outsourced customer 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, 2015:

        

Revenues

   $ 1,045,415      $ 240,826      $ 99      $ 1,286,340   

Percentage of revenues

     81.3     18.7     0.0     100.0

 

Depreciation, net

   $ 37,842      $ 4,559      $ 1,351      $ 43,752   

Amortization of intangibles

   $ 13,648      $ 522      $ —        $ 14,170   

 

Income (loss) from operations

   $ 135,443      $ 15,336      $ (56,515   $ 94,264   

Other (expense), net

         (4,281     (4,281

Income taxes

         (21,386     (21,386
        

 

 

 

Net income

         $ 68,597   
        

 

 

 

 

Total assets as of December 31, 2015

   $ 1,058,467      $ 1,419,578      $ (1,530,273   $ 947,772   
  

 

 

   

 

 

   

 

 

   

 

 

 

Year Ended December 31, 2014:

        

Revenues

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

Percentage of revenues

     80.7     19.3     0.0     100.0

 

Depreciation, net

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

Amortization of intangibles

   $ 14,396      $ —        $ —        $ 14,396   

 

Income (loss) from operations

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

Other (expense), net

         (2,396     (2,396

Income taxes

         (19,368     (19,368
        

 

 

 

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

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

Percentage of revenues

     83.2     16.8     0.0     100.0

 

Depreciation, net

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

Amortization of intangibles

   $ 14,863      $ —        $ —        $ 14,863   

 

Income (loss) from operations

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

Other (expense), net

         (2,202     (2,202

Income taxes

         (14,065     (14,065
        

 

 

 

Net income

         $ 37,260   
        

 

 

 

 

Total assets as of December 31, 2013

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

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

Other items (including corporate and other costs, impairment 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, 2015, 2014 and 2013. 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 operations, and does not include segment assets or other income and expense items for management reporting purposes.

 

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

 

     Years Ended December 31,  
     2015     2014     2013  
     Amount      % of Revenues     Amount      % of Revenues     Amount      % of Revenues  

Americas

   $ 217,449         20.8   $ 212,607         19.9   $ 162,888         15.5

EMEA

     3,003         1.2     3,519         1.4     3,513         1.7
  

 

 

      

 

 

      

 

 

    
   $ 220,452         17.1   $ 216,126         16.3   $ 166,401         13.2
  

 

 

      

 

 

      

 

 

    

The Company has multiple distinct contracts with AT&T spread across multiple lines of businesses, which expire at varying dates between 2016 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 in each of the years, were as follows (in thousands):

 

     Years Ended December 31,  
     2015     2014     2013  
     Amount      % of Revenues     Amount      % of Revenues     Amount      % of Revenues  

Americas

   $ 62,980         6.0   $ 70,255         6.6   $ 73,226         7.0

EMEA

     —           0.0     —           0.0     —           0.0
  

 

 

      

 

 

      

 

 

    
   $ 62,980         4.9   $ 70,255         5.3   $ 73,226         5.8
  

 

 

      

 

 

      

 

 

    

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

 

     Years Ended December 31,  
     2015     2014     2013  
     Amount      % of Revenues     Amount      % of Revenues     Amount      % of Revenues  

Americas

   $ —           0.0   $ —           0.0   $ —           0.0

EMEA

     68,720         28.5     79,811         31.1     55,123         25.9
  

 

 

      

 

 

      

 

 

    
   $ 68,720         5.3   $ 79,811         6.0   $ 55,123         4.4
  

 

 

      

 

 

      

 

 

    

The Company’s top ten clients accounted for approximately 48.5%, 46.8% and 45.9% of its consolidated revenues during the years ended December 31, 2015, 2014 and 2013, respectively.

 

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

 

     Years Ended December 31,  
     2015      2014      2013  

Revenues: (1)

        

United States

   $ 422,584       $ 425,746       $ 388,775   

The Philippines

     216,170         205,332         213,132   

Canada

     133,549         195,739         210,463   

Costa Rica

     114,483         97,295         101,888   

El Salvador

     63,462         52,609         46,301   

China

     36,270         32,167         25,478   

Australia

     23,960         33,126         36,725   

Mexico

     18,338         20,439         23,701   

Colombia

     7,381         3,073         —     

Brazil

     5,442         3,005         3,288   

India

     3,776         2,293         1,062   
  

 

 

    

 

 

    

 

 

 

Total Americas

     1,045,415         1,070,824         1,050,813   
  

 

 

    

 

 

    

 

 

 

Germany

     82,120         88,887         77,950   

Sweden

     56,600         68,057         49,953   

United Kingdom

     50,209         42,328         33,750   

Romania

     15,474         18,288         14,856   

Hungary

     9,164         8,723         8,525   

Norway

     8,382         10,265         6,768   

Finland

     4,643         4,295         4,936   

Denmark

     3,898         4,578         4,739   

Netherlands

     3,783         3,126         3,073   

Egypt

     3,552         4,633         4,810   

Slovakia

     3,001         3,519         3,287   
  

 

 

    

 

 

    

 

 

 

Total EMEA

     240,826         256,699         212,647   
  

 

 

    

 

 

    

 

 

 

Total Other

     99         —           —     
  

 

 

    

 

 

    

 

 

 
   $ 1,286,340       $ 1,327,523       $ 1,263,460   
  

 

 

    

 

 

    

 

 

 

 

(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.

 

Information about the Company’s long-lived assets by geographic location was as follows (in thousands):

 

     December 31,  
     2015      2014  

Long-Lived Assets: (1)

     

United States

   $ 93,941       $ 108,030   

The Philippines

     10,844         14,656   

Canada

     10,278         16,257   

Costa Rica

     7,382         5,625   

El Salvador

     3,329         3,298   

China

     3,523         4,417   

Australia

     2,396         2,923   

Mexico

     1,307         1,575   

Colombia

     1,299         1,514   

Brazil

     1,047         844   

India

     301         223   
  

 

 

    

 

 

 

Total Americas

     135,647         159,362   
  

 

 

    

 

 

 

Germany

     1,973         2,310   

Sweden

     1,681         2,478   

United Kingdom

     3,652         3,871   

Romania

     678         682   

Hungary

     536         442   

Norway

     278         490   

Finland

     226         92   

Denmark

     81         95   

Netherlands

     7,243         9   

Egypt

     105         172   

Slovakia

     —           497   
  

 

 

    

 

 

 

Total EMEA

     16,453         11,138   
  

 

 

    

 

 

 

Total Other

     10,758         —     
  

 

 

    

 

 

 
   $ 162,858       $ 170,500   
  

 

 

    

 

 

 

 

(1)

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

Goodwill by segment was as follows (in thousands):

 

     December 31,  
     2015      2014  

Americas

   $ 186,049       $ 193,831   

EMEA

     9,684         —     
  

 

 

    

 

 

 
   $ 195,733       $ 193,831   
  

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2015      2014      2013  

Outsourced customer contract management services

   $ 1,261,465       $ 1,303,607       $ 1,240,328   

Fulfillment services

     21,434         18,392         16,953   

Enterprise support services

     3,441         5,524         6,179   
  

 

 

    

 

 

    

 

 

 
   $ 1,286,340       $ 1,327,523       $ 1,263,460   
  

 

 

    

 

 

    

 

 

Other Income (Expense)
Other Income (Expense)

Note 26. Other Income (Expense)

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

 

     Years Ended December 31,  
     2015     2014     2013  

Foreign currency transaction gains (losses)

   $ (2,924   $ (1,740   $ (5,962

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

     1,374        (44     4,216   

Gains (losses) on liquidation of foreign subsidiaries

     (647     —          —     

Other miscellaneous income (expense)

     (287     441        985   
  

 

 

   

 

 

   

 

 

 
   $ (2,484   $ (1,343   $ (761
  

 

 

   

 

 

   

 

 

 

Related Party Transactions
Related Party Transactions

Note 27. 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, 2015, 2014 and 2013 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, 2015, 2014 and 2013:

 

(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, 2015

   $ 4,661         278      $ (1,365   $ 3,574   

Year ended December 31, 2014

     4,987         (181     (145     4,661   

Year ended December 31, 2013

     5,081         483        (577     4,987   

Valuation allowance for net deferred tax assets:

         

Year ended December 31, 2015

   $ 34,146       $ (4,081   $ —        $ 30,065   

Year ended December 31, 2014

     42,664         (8,518     —          34,146   

Year ended December 31, 2013

     43,298         (634     —          42,664   

Reserves for value added tax receivables:

         

Year ended December 31, 2015

   $ 275       $ —        $ 8      $ 283   

Year ended December 31, 2014

     2,530         (638     (1,617     275   

Year ended December 31, 2013

     3,076         143        (689     2,530   

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, chat and digital self-service. 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, which includes 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 July 2015, the Company completed the acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”), pursuant to definitive Share Sale and Purchase Agreement, dated July 2, 2015. The Company has reflected the operating results in the Consolidated Statements of Operations since July 2, 2015. See Note 2, Acquisitions, for additional information on the acquisition.

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 1.6%, 1.4% and 1.3% of total consolidated revenues for the years ended December 31, 2015, 2014 and 2013, 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, 2015, 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, 2015.

Cash and Cash Equivalents — Cash and cash equivalents consist of cash and highly liquid short-term investments.Cash in the amount of $235.4 million and $215.1 million at December 31, 2015 and 2014, respectively, was primarily held in interest bearing investments, which have original maturities of less than 90 days. Cash and cash equivalents of $221.7 million and $194.4 million at December 31, 2015 and 2014, 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. The Company determined that its property and equipment were not impaired as of December 31, 2015.

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 Accounting Standards Codification (“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.

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.

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

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

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

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

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

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

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 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 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 24, Stock-Based Compensation. Stock-based awards under these plans may consist of common stock, stock options, cash-settled or stock-settled stock appreciation rights, restricted stock and other stock-based awards. The Company issues common stock and uses treasury stock to satisfy stock option exercises or vesting of stock awards.

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

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

 

   

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

 

   

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

 

   

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

 

   

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

Fair Value Measurements ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles

and expands disclosures about fair value measurements. ASC 820-10-20 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

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

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

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

 

   

Level 1 Quoted prices for identical instruments in active markets.

 

   

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

 

   

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

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

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

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

Money market and open-end mutual funds The Company uses quoted market prices in active markets to determine the fair value. These items are classified in Level 1 of the fair value hierarchy.

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

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 11, Investments Held in Rabbi Trust, and Note 24, 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.

 

Contingent consideration The Company uses significant unobservable inputs to determine the fair value of contingent consideration, which is classified in Level 3 of the fair value hierarchy. The contingent consideration was recognized at fair value using a discounted cash flow methodology and a discount rate of 14.0%. The discount rate is dependent on the specific risks of the acquisition including the country of operation, the nature of services and complexity of the acquired business, and other similar factors, all of which are significant inputs not observable in the market. Significant increases or decreases in any of the inputs in isolation would result in a significantly higher or lower fair value measurement.

Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is other than the U.S. Dollar, are translated at the exchange rates in effect on the 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, 2015 and 2014, all hedges were determined to be highly effective.

The Company also periodically enters into forward contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to reduce the effects from fluctuations caused by volatility in currency exchange rates on the Company’s operating results and cash flows. Changes in the fair value of the derivative instruments are included in “Revenues” or “Other income (expense)”, depending on the underlying risk exposure. See Note 10, 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 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 May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date” (“ASU 2015-14”). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. An entity should apply the amendments using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company is currently evaluating the methods of adoption and 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 (“ASC”) 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; early adoption is permitted. Entities may apply the amendments either (1) prospective to all awards granted or modified after the effective date or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

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. These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments either prospectively or retrospectively to all prior periods presented in the financial statements. The adoption of ASU 2015-01 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) Amendments to the Consolidation Analysis) (“ASU 2015-02”). These amendments are intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. These amendments affect the consolidation evaluation for reporting organizations. In addition, the amendments simplify and improve current U.S. GAAP by reducing the number of consolidation models. The amendments are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments using either a modified retrospective approach or retrospectively. The adoption of ASU 2015-02 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. These amendments are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Entities should apply the amendments retrospectively. The adoption of ASU 2015-03 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). These amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. These amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015; early adoption is permitted. Entities can adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The adoption of ASU 2015-05 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In September 2015, the FASB issued ASC 2015-16, “Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). These amendments eliminate the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. These amendments are effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. The adoption of ASU 2015-16 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In November 2015, the FASB issued ASC 2015-17, “Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). These amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The existing requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by these amendments. These amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. These amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted as of the beginning of the interim or annual reporting period. The Company has not yet determined whether to early adopt ASU 2015-17, or selected a transition method, and is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

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

In February 2016, the FASB issued ASC 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840 “Leases”. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its financial condition, results of operations and cash flows.

New Accounting Standards Recently Adopted

In April 2014, the FASB issued 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 will 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 August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30) Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” (“ASU 2015-15”). These amendments provide additional guidance to ASU 2015-03, which did not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 noted that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The adoption of ASU 2015-15 on August 18, 2015 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

Basic earnings per share is 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.

Acquisitions (Tables)

As of the acquisition date, the total consideration paid or to be paid by the Company for the Qelp acquisition is summarized below (in thousands):

 

     Total  

Cash

   $ 9,885   

Contingent consideration

     6,000   

Working capital adjustment

     (65
  

 

 

 
   $ 15,820   
  

 

 

 

The following table summarizes the estimated acquisition date fair values of the assets acquired and liabilities assumed, all included in the EMEA segment (in thousands):

 

     July 2, 2015
(As Initially
Reported)
    Measurement
Period
Adjustments
    July 2, 2015
(As Adjusted)
 

Cash and cash equivalents

   $ 450      $ —        $ 450   

Receivables (1)

     1,541        (70     1,471   

Prepaid expenses

     24        —          24   
  

 

 

   

 

 

   

 

 

 

Total current assets

     2,015        (70     1,945   

Property and equipment

     2,168        —          2,168   

Goodwill

     9,574        480        10,054   

Intangibles

     6,000        —          6,000   

Deferred charges and other assets

     55        —          55   

Short-term debt

     (323     —          (323

Accrued employee compensation and benefits

     (207     —          (207

Income taxes payable

     (62     (32     (94

Deferred revenue

     (967     —          (967

Other accrued expenses and current liabilities

     (1,030     —          (1,030
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     (2,589     (32     (2,621

Other long-term liabilities (2)

     (1,403     (378     (1,781
  

 

 

   

 

 

   

 

 

 
   $ 15,820      $ —        $ 15,820   
  

 

 

   

 

 

   

 

 

 

 

(1)

The fair value equals the gross contractual value of the receivables.

 

(2)

Primarily includes long-term deferred tax liabilities.

The following table presents the Company’s purchased intangibles assets as of July 2, 2015, the acquisition date (in thousands):

 

     Amount
Assigned
     Weighted
Average
Amortization
Period (years)
 

Customer relationships

   $ 5,400         7   

Trade name and trademarks

     100         3   

Content library

     500         2   
  

 

 

    
   $ 6,000         7   
  

 

 

    

The amount of Qelp’s revenues and net (loss) since the July 2, 2015 acquisition date, included in the Company’s Consolidated Statement of Operations for the year ended December 31, 2015 were as follows (in thousands):

 

     From
July 2,
2015 Through
December 31,
2015
 

Revenues

   $ 2,661   

Net (loss)

   $ (162

Merger and integration costs associated with Qelp included in “General and administrative” costs in the accompanying Consolidated Statement of Operations in the Other segment for the year ended December 31, 2015 were as follows (none in 2014 and 2013) (in thousands):

 

     Year Ended
December 31, 2015
 

Transaction costs

   $ 455   
  

 

 

 

Merger and integration costs associated with Alpine were as follows (none in 2015 and 2014) (in thousands):

 

     Year Ended
December 31,  2013
 

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

  

Americas

   $ 526   
  

 

 

 
     526   

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

  

Americas

     985   

Other

     159   
  

 

 

 
     1,144   

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

  

Other

     444   
  

 

 

 
     444   
  

 

 

 

Total merger and integration costs

   $ 2,114   
  

 

 

 

 

(1)

In the accompanying Consolidated Statements of Operations.

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, 2015 (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   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The following table summarizes the accrued liability associated with the Exit Plans’ exit or disposal activities and related charges (reversals) for the years ended December 31, 2015, 2014 and 2013 (in thousands):

 

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

Balance at January 1, 2013

   $ 3,772      $ 187      $ 10      $ 3,969   

Charges (reversals) (1)

     318        (56     —          262   

Cash payments

     (1,264     (8     (10     (1,282

Other non-cash changes (3)

     17        8        —          25   
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2013

     2,843        131        —          2,974   

Charges (reversals) (2)

     (185     (129     —          (314

Cash payments

     (1,095     —          —          (1,095

Other non-cash changes (3)

     (5     (2     —          (7
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2014

     1,558        —          —          1,558   

Charges (reversals)

     —          —          —          —     

Cash payments

     (825     —          —          (825

Other non-cash changes (3)

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2015

   $ 733      $ —        $ —        $ 733   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

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

 

(2)

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 in EMEA for the Ireland sites, which reduced “General and administrative” costs in the accompanying Consolidated Statement of Operations.

 

(3)

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, 2015 and 2014 (in thousands):

 

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

December 31, 2015

        

Short-term accrued restructuring liability (1)

   $ 144       $ 487       $ 631   

Long-term accrued restructuring liability (2)

     22         80         102   
  

 

 

    

 

 

    

 

 

 

Ending accrual at December 31, 2015

   $ 166       $ 567       $ 733   
  

 

 

    

 

 

    

 

 

 

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   
  

 

 

    

 

 

    

 

 

 

 

(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 as of December 31, 2015 (in thousands):

 

            Fair Value Measurements at December 31, 2015 Using:  
     Balance at      Quoted Prices
in Active
Markets For
Identical Assets
     Significant
Other
Observable
Inputs
     Significant
Unobservable
Inputs
 
     December 31, 2015      Level (1)      Level (2)      Level (3)  

Assets:

           

Foreign currency forward and option contracts included in “Other current assets” (1)

   $ 10,962       $ —         $ 10,962       $ —     

Equity investments held in a rabbi trust for the Deferred Compensation Plan (2)

     6,229         6,229         —           —     

Debt investments held in a rabbi trust for the Deferred Compensation Plan (2)

     1,622         1,622         —           —     

Guaranteed investment certificates (3)

     86         —           86         —     
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 18,899       $ 7,851       $ 11,048       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

           

Long-term debt (4)

   $ 70,000       $ —         $ 70,000       $ —     

Foreign currency forward and option contracts included in “Other accrued expenses and current liabilities” (1)

     835         —           835         —     

Contingent consideration included in “Other long-term liabilities” (5)

     6,280         —           —           6,280   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 77,115       $ —         $ 70,835       $ 6,280   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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 as of December 31, 2014 (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” (5)

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

Money market funds and open-end mutual funds included in “Deferred charges and other assets” (5)

     10         10         —           —     

Foreign currency forward and option contracts included in “Other current assets” (1)

     1,489         —           1,489         —     

Foreign currency forward contracts included in “Deferred charges and other assets” (1)

     4,060         —           4,060         —     

Equity investments held in a rabbi trust for the Deferred Compensation Plan (2)

     5,589         5,589         —           —     

Debt investments held in a rabbi trust for the Deferred Compensation Plan (2)

     1,363         1,363         —           —     

Guaranteed investment certificates (3)

     79         —           79         —     
  

 

 

    

 

 

    

 

 

    

 

 

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

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

           

Long-term debt (4)

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

Foreign currency forward and option contracts included in “Other accrued expenses and current liabilities” (1)

     1,261         —           1,261         —     
  

 

 

    

 

 

    

 

 

    

 

 

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

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

In the accompanying Consolidated Balance Sheets. See Note 10, Financial Derivatives.

 

(2)

Included in “Other current assets” in the accompanying Consolidated Balance Sheets. See Note 11, Investments Held in Rabbi Trust.

 

(3)

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

 

(4)

The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 18, Borrowings.

 

(5) 

In the accompanying Consolidated Balance Sheets.

A rollforward of the activity in the Company’s fair value of the contingent consideration is as follows (in thousands):

 

     Fair Value  

Balance at January 1, 2015

   $ —     

Acquisition (1)

     6,000   

Payments

     —     

Imputed interest/adjustments

     408   

Effect of foreign currency

     (128
  

 

 

 

Balance at December 31, 2015

   $ 6,280   
  

 

 

 

 

(1)

Related to the Qelp acquisition on July 2, 2015. See Note 2, Acquisitions.

Goodwill and Intangible Assets (Tables)

The following table presents the Company’s purchased intangible assets as of December 31, 2015 (in thousands):

 

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

Customer relationships

   $ 102,594       $ (58,294   $ 44,300         8   

Trade names and trademarks

     11,698         (5,470     6,228         8   

Non-compete agreements

     1,190         (1,190     —           2   

Proprietary software

     850         (850     —           2   

Favorable lease agreement

     449         (449     —           2   

Content library

     491         (123     368         2   
  

 

 

    

 

 

   

 

 

    
   $ 117,272       $ (66,376   $ 50,896         8   
  

 

 

    

 

 

   

 

 

    

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 names and trademarks

     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 Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to December 31, 2015, is as follows (in thousands):

 

Years Ending December 31,

   Amount  

2016

   $ 14,489   

2017

     14,366   

2018

     8,198   

2019

     7,605   

2020

     5,104   

2021 and thereafter

     1,134   

Changes in goodwill for the year ended December 31, 2015 consist of the following (in thousands):

 

     January 1, 2015      Acquisition  (1)      Effect of Foreign
Currency
    December 31,
2015
 

Americas

   $ 193,831       $ —         $ (7,782   $ 186,049   

EMEA

     —           10,054         (370     9,684   
  

 

 

    

 

 

    

 

 

   

 

 

 
   $ 193,831       $ 10,054       $ (8,152   $ 195,733   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

(1)

See Note 2, Acquisitions, for further information.

 

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

 

     January 1, 2014      Acquisition      Effect of Foreign
Currency
    December 31,
2014
 

Americas

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

EMEA

     —           —           —          —     
  

 

 

    

 

 

    

 

 

   

 

 

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

 

 

    

 

 

    

 

 

   

 

 

 
Receivables, Net (Tables)
Receivables, Net

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

 

     December 31,  
     2015     2014  

Trade accounts receivable

   $ 271,729      $ 290,711   

Income taxes receivable

     4,976        993   

Other

     3,965        3,354   
  

 

 

   

 

 

 
     280,670        295,058   

Less: Allowance for doubtful accounts

     3,574        4,661   
  

 

 

   

 

 

 
   $ 277,096      $ 290,397   
  

 

 

   

 

 

 

Allowance for doubtful accounts as a percent of trade receivables

     1.3     1.6
  

 

 

   

 

 

 
Prepaid Expenses (Tables)
Prepaid Expenses, Net

Prepaid expenses consist of the following (in thousands):

 

     December 31,  
     2015      2014  

Prepaid maintenance

   $ 7,509       $ 5,315   

Prepaid insurance

     4,207         3,112   

Prepaid rent

     1,919         3,147   

Prepaid other

     3,686         3,322   
  

 

 

    

 

 

 
   $ 17,321       $ 14,896   
  

 

 

    

 

 

 
Other Current Assets (Tables)
Other Current Assets, Net

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

 

     December 31,  
     2015      2014  

Deferred tax assets (Note 20)

   $ 12,009       $ 13,703   

Financial derivatives (Note 10)

     10,962         1,489   

Investments held in rabbi trust (Note 11)

     7,851         6,952   

Value added tax certificates

     —           6,303   

Other current assets

     2,440         1,209   
  

 

 

    

 

 

 
   $ 33,262       $ 29,656   
  

 

 

    

 

 

 
Financial Derivatives (Tables)

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

 

     December 31,  
     2015     2014  

Deferred gains (losses) in AOCI

   $ (558   $ (157

Tax on deferred gains (losses) in AOCI

     31        46   
  

 

 

   

 

 

 

Deferred gains (losses) in AOCI, net of taxes

   $ (527   $ (111
  

 

 

   

 

 

 

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

   $ (558  
  

 

 

   

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

 

     As of December 31, 2015      As of December 31, 2014  

Contract Type

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

Cash flow hedges:

           

Options:

           

Philippine Pesos

   $ 71,750         December 2016       $ 73,000         December 2015   

Forwards:

           

Costa Rican Colones

     34,500         November 2016         51,600         October 2015   

Romanian Leis

     —           —           10,414         December 2015   

Philippine Pesos

     —           —           9,000         March 2015   

Net investment hedges:

           

Forwards:

           

Euros

     63,470         March 2016         51,648         March 2016   

Non-designated hedges:

           

Forwards

     50,603         March 2016         64,541         March 2015   

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, 2015     December 31, 2014  
    Fair Value     Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

   

Foreign currency forward and option contracts (1)

  $ 544      $ 974   

Derivatives designated as net investment hedging instruments under ASC 815:

   

Foreign currency forward contracts (1)

    10,161        —     

Foreign currency forward contracts (2)

    —          4,060   
 

 

 

   

 

 

 
    10,705        5,034   

Derivatives not designated as hedging instruments under ASC 815:

   

Foreign currency forward contracts (1)

    257        515   
 

 

 

   

 

 

 

Total derivative assets

  $ 10,962      $ 5,549   
 

 

 

   

 

 

 
    Derivative Liabilities  
    December 31, 2015     December 31, 2014  
    Fair Value     Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

   

Foreign currency forward and option contracts (3)

  $ 396      $ 406   

Derivatives not designated as hedging instruments under ASC 815:

   

Foreign currency forward contracts (3)

    439        855   
 

 

 

   

 

 

 

Total derivative liabilities

  $ 835      $ 1,261   
 

 

 

   

 

 

 

 

(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, 2015, 2014 and 2013 (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
and Amount

Excluded from Effectiveness
Testing)
 
    December 31,     December 31,     December 31,  
    2015     2014     2013     2015     2014     2013     2015     2014     2013  

Derivatives designated as cash flow hedging instruments under ASC 815:

                 

Foreign currency forward and option contracts

  $ 1,696      $ (2,787   $ (2,823   $ 2,138      $ (5,339   $ (666   $ 12      $ (3   $ 119   

Derivatives designated as net investment hedging instruments under ASC 815:

                 

Foreign currency forward contracts

    6,101        6,344        (1,720     —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Foreign currency forward and option contracts

  $ 7,797      $ 3,557      $ (4,543   $ 2,138      $ (5,339   $ (666   $ 12      $ (3   $ 119   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Gain (Loss) Recognized  in
“Other income (expense)”
on Derivatives
 
     December 31,  
     2015      2014     2013  

Derivatives not designated as hedging instruments under ASC 815:

       

Foreign currency forward contracts

   $ 1,374       $ (44   $ 4,216   
  

 

 

    

 

 

   

 

 

 
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, 2015      December 31, 2014  
     Cost      Fair Value      Cost      Fair Value  

Mutual funds

   $ 6,217       $ 7,851       $ 5,160       $ 6,952   
  

 

 

    

 

 

    

 

 

    

 

 

 

The mutual funds held in the rabbi trust were 79% equity-based and 21% debt-based as of December 31, 2015. 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,
 
     2015     2014     2013  

Gross realized gains from sale of trading securities

   $ 356      $ 586      $ 160   

Gross realized (losses) from sale of trading securities

     (1     —          (10

Dividend and interest income

     79        58        279   

Net unrealized holding gains (losses)

     (597     (276     568   
  

 

 

   

 

 

   

 

 

 

Net investment income (losses)

   $ (163   $ 368      $ 997   
  

 

 

   

 

 

   

 

 

 
Property and Equipment (Tables)

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

 

     December 31,  
     2015      2014  

Land

   $ 3,447       $ 3,600   

Buildings and leasehold improvements

     96,926         94,786   

Equipment, furniture and fixtures

     291,993         293,857   

Capitalized internally developed software costs

     17,299         7,963   

Transportation equipment

     546         531   

Construction in progress

     8,703         8,071   
  

 

 

    

 

 

 
     418,914         408,808   

Less: Accumulated depreciation

     306,952         298,928   
  

 

 

    

 

 

 
   $ 111,962       $ 109,880   
  

 

 

    

 

 

 

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

 

     December 31,  
     2015      2014  

Capitalized internally developed software costs, net

   $ 8,135       $ 1,270   
  

 

 

    

 

 

 
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,  
     2015      2014  

Non-current mandatory tax security deposits (Note 20)

   $ 13,418       $ 15,906   

Rent and other deposits

     3,803         3,215   

Non-current deferred tax assets (Note 20)

     1,899         1,681   

Non-current value added tax receivables

     673         856   

Foreign currency forward contracts (Note 10)

     —           4,060   

Other

     6,351         4,365   
  

 

 

    

 

 

 
   $ 26,144       $ 30,083   
  

 

 

    

 

 

 
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,  
     2015      2014  

Accrued compensation

   $ 28,215       $ 32,786   

Accrued bonus and commissions

     17,754         18,590   

Accrued vacation

     16,439         16,613   

Accrued employment taxes

     8,465         9,362   

Other

     6,373         4,721   
  

 

 

    

 

 

 
   $ 77,246       $ 82,072   
  

 

 

    

 

 

 
Deferred Revenue (Tables)
Components of Deferred Revenue

Deferred revenue consists of the following (in thousands):

 

     December 31,  
     2015      2014  

Future service

   $ 22,112       $ 25,222   

Estimated potential penalties and holdbacks

     6,007         9,023   
  

 

 

    

 

 

 
   $ 28,119       $ 34,245   
  

 

 

    

 

 

 
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,  
     2015      2014  

Accrued legal and professional fees

   $ 3,079       $ 4,508   

Accrued rent

     1,812         640   

Accrued roadside assistance claim costs

     1,405         1,878   

Accrued telephone charges

     1,381         1,068   

Accrued utilities

     1,097         1,329   

Accrued equipment and software

     935         2,196   

Foreign currency forward and option contracts (Note 10)

     835         1,261   

Customer deposits

     714         793   

Accrued restructuring (Note 3)

     631         630   

Other

     9,587         7,913   
  

 

 

    

 

 

 
   $ 21,476       $ 22,216   
  

 

 

    

 

 

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

Deferred grants consist of the following (in thousands):

 

     December 31,  
     2015     2014  

Property grants

   $ 4,377      $ 5,110   

Lease grants

     513        —     

Employment grants

     149        207   
  

 

 

   

 

 

 

Total deferred grants

     5,039        5,317   

Less: Property grants — short-term (1)

     —          —     

Less: Lease grants — short-term (1)

     (80     —     

Less: Employment grants — short-term (1)

     (149     (207
  

 

 

   

 

 

 

Total long-term deferred grants

   $ 4,810      $ 5,110   
  

 

 

   

 

 

 

 

(1)

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

Borrowings (Tables)

Borrowings consist of the following (in thousands):

 

     December 31,  
     2015      2014  

Revolving credit facility

   $ 70,000       $ 75,000   

Less: Current portion

     —           —     
  

 

 

    

 

 

 

Total long-term debt

   $ 70,000       $ 75,000   
  

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2015     2014     2013  

Average daily utilization

   $ 69,964      $ 85,874      $ 102,512   

Interest expense, including commitment fee (1)

   $ 1,307      $ 1,425      $ 1,765   

Weighted average interest rate

     1.9     1.7     1.7

 

(1)

Excludes the amortization of deferred loan fees.

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, 2013

   $ 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

Pre-tax amount

     (37,178     6,101        121        1,708        (12     (29,260

Tax (provision) benefit

     —          (2,207     (2     32        —          (2,177

Reclassification of (gain) loss to net income

     647        —          (53     (2,195     (63     (1,664

Foreign currency translation

     6        —          (45     39        —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2015

   $ (58,601   $ 4,170      $ 1,029      $ (527   $ 267      $ (53,662

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

 

     Years Ended December 31,    

Statements of Operations Location

     2015     2014     2013      

Foreign Currency Translation Gain (Loss): (1)

        

Pre-tax amount

   $ (647   $ —        $ —        Other income (expense)

Tax (provision) benefit

     —          —          —        Income taxes
  

 

 

   

 

 

   

 

 

   

Reclassification to net income

     (647     —          —       

Actuarial Gain (Loss) Related to Pension Liability: (2)

        

Pre-tax amount

     41        50        60      Direct salaries and related costs

Tax (provision) benefit

     12        (15     (19   Income taxes
  

 

 

   

 

 

   

 

 

   

Reclassification to net income

     53        35        41     

Gain (Loss) on Cash Flow Hedging Instruments: (3)

        

Pre-tax amount

     2,150        (5,342     (547   Revenues

Tax (provision) benefit

     45        105        226      Income taxes
  

 

 

   

 

 

   

 

 

   

Reclassification to net income

     2,195        (5,237     (321  

Gain (Loss) on Post Retirement Obligation: (2)

        

Pre-tax amount

     63        49        54      General and administrative

Tax (provision) benefit

     —          —          —        Income taxes
  

 

 

   

 

 

   

 

 

   

Reclassification to net income

     63        49        54     
  

 

 

   

 

 

   

 

 

   

Total reclassification of gain (loss) to net income

   $ 1,664      $ (5,153   $ (226  
  

 

 

   

 

 

   

 

 

   

 

(1) 

See Note 26, Other Income (Expense), for further information.

 

(2) 

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

 

(3) 

See Note 10, Financial Derivatives, for further information.

Income Taxes (Tables)

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

 

     Years Ended December 31,  
     2015      2014      2013  

Domestic (U.S., state and local)

   $ 41,178       $ 28,563       $ 5,544   

Foreign

     48,805         48,596         45,781   
  

 

 

    

 

 

    

 

 

 

Total income before income taxes

   $ 89,983       $ 77,159       $ 51,325   
  

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2015     2014     2013  

Current:

      

U.S. federal

   $ 7,374      $ 2,579      $ 881   

State and local

     1,051        542        82   

Foreign

     10,446        11,382        13,464   
  

 

 

   

 

 

   

 

 

 

Total current provision for income taxes

     18,871        14,503        14,427   
  

 

 

   

 

 

   

 

 

 

Deferred:

      

U.S. federal

     3,873        5,437        866   

State and local

     (1,227     (446     —     

Foreign

     (131     (126     (1,228
  

 

 

   

 

 

   

 

 

 

Total deferred provision (benefit) for income taxes

     2,515        4,865        (362
  

 

 

   

 

 

   

 

 

 

Total provision for income taxes

   $ 21,386      $ 19,368      $ 14,065   
  

 

 

   

 

 

   

 

 

 

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,  
     2015     2014     2013  

Net operating loss and tax credit carryforwards

   $ 3,564      $ 19,335      $ 8,029   

Accrued expenses/liabilities

     2,856        (4,505     954   

Depreciation and amortization

     (2,231     (6,220     (5,030

Valuation allowance

     (1,958     (3,706     (1,887

Deferred statutory income

     266        (29     (2,425

Other

     18        (10     (3
  

 

 

   

 

 

   

 

 

 

Total deferred provision (benefit) for income taxes

   $ 2,515      $ 4,865      $ (362
  

 

 

   

 

 

   

 

 

 

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,  
     2015     2014     2013  

Tax at U.S. federal statutory tax rate

   $ 31,494      $ 27,005      $ 17,964   

State income taxes, net of federal tax benefit

     (177     934        82   

Foreign rate differential

     (14,030     (13,164     (9,319

Tax holidays

     (4,031     (2,749     (4,686

Permanent differences

     11,737        10,170        9,051   

Tax credits

     (4,102     (4,894     (5,020

Foreign withholding and other taxes

     2,321        2,541        4,643   

Change in valuation allowance, net of related adjustments

     (631     (7     1,354   

Changes in uncertain tax positions

     (1,858     (468     (4

Other

     663        —          —     
  

 

 

   

 

 

   

 

 

 

Total provision for income taxes

   $ 21,386      $ 19,368      $ 14,065   
  

 

 

   

 

 

   

 

 

 

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

 

     December 31,  
     2015     2014  

Deferred tax assets:

    

Net operating loss and tax credit carryforwards

   $ 32,328      $ 35,400   

Valuation allowance

     (30,065     (34,146

Accrued expenses

     24,276        25,694   

Deferred revenue

     3,193        3,757   

Depreciation and amortization

     953        835   

Other

     54        —     
  

 

 

   

 

 

 
     30,739        31,540   
  

 

 

   

 

 

 

Deferred tax liabilities:

    

Depreciation and amortization

     (19,826     (20,172

Deferred statutory income

     (579     (772

Accrued liabilities

     (1,104     (141

Other

     (119     (1
  

 

 

   

 

 

 
     (21,628     (21,086
  

 

 

   

 

 

 

Net deferred tax assets

   $ 9,111      $ 10,454   
  

 

 

   

 

 

 
   December 31,  
     2015     2014  

Classified as follows:

    

Other current assets (Note 9)

   $ 12,009      $ 13,703   

Deferred charges and other assets (Note 13)

     1,899        1,681   

Current deferred income tax liabilities

     (1,120     (144

Other long-term liabilities

     (3,677     (4,786
  

 

 

   

 

 

 

Net deferred tax assets

   $ 9,111      $ 10,454   
  

 

 

   

 

 

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

 

     Years Ended December 31,  
     2015     2014     2013  

Gross unrecognized tax benefits as of January 1,

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

Decreases due to lapse in applicable statute of limitations

     (2,206     —          (390

Foreign currency translation increases (decreases)

     (2,963     (1,706     (1,516
  

 

 

   

 

 

   

 

 

 

Gross unrecognized tax benefits as of December 31,

   $ 8,116      $ 13,285      $ 14,991   
  

 

 

   

 

 

   

 

 

 

The significant tax jurisdictions currently under audit are as follows:

 

Tax Jurisdiction

  

Tax Year Ended

Canada

   2003 to 2009

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, 2015:

 

Tax Jurisdiction

  

Tax Year Ended

Canada    2003 to present
United States (1)    2012 to present

 

(1) 

The 2002 to 2011 tax years are open to the extent of the 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,  
     2015      2014      2013  

Basic:

        

Weighted average common shares outstanding

     41,899         42,609         42,877   

Diluted:

        

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

     548         205         48   
  

 

 

    

 

 

    

 

 

 

Total weighted average diluted shares outstanding

     42,447         42,814         42,925   
  

 

 

    

 

 

    

 

 

 

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

     20         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, 2015

     860       $ 22.81       $ 25.00       $ 20,879   

December 31, 2014

     630       $ 19.80       $ 20.00       $ 12,581   

December 31, 2013

     341       $ 15.61       $ 16.99       $ 5,479   
Commitments and Loss Contingency (Tables)

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

 

     Years Ended December 31,  
     2015      2014      2013  

Rental expense

   $ 47,208       $ 44,916       $ 47,365   
  

 

 

    

 

 

    

 

 

 

The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of December 31, 2015 (in thousands):

 

     Amount  

2016

   $ 38,318   

2017

     33,923   

2018

     27,641   

2019

     22,480   

2020

     16,423   

2021 and thereafter

     30,973   
  

 

 

 

Total minimum payments required

   $ 169,758   
  

 

 

 

The following is a schedule of future minimum purchases remaining under the agreements as of December 31, 2015 (in thousands):

 

     Amount  

2016

   $ 41,806   

2017

     15,975   

2018

     1,718   

2019

     1,477   

2020

     857   

2021 and thereafter

     470   
  

 

 

 

Total minimum payments required

   $ 62,303   
  

 

 

 
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,  
     2015     2014  

Beginning benefit obligation

   $ 3,100      $ 2,481   

Service cost

     433        387   

Interest cost

     135        104   

Actuarial (gains) losses

     (121     50   

Effect of foreign currency translation

     (138     78   
  

 

 

   

 

 

 

Ending benefit obligation

   $ 3,409      $ 3,100   
  

 

 

   

 

 

 
    

Unfunded status

     (3,409     (3,100
  

 

 

   

 

 

 

Net amount recognized

   $ (3,409   $ (3,100
  

 

 

   

 

 

 

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,
         2015            2014            2013    

Discount rate

   5.0 - 5.4%    4.5 - 4.9%    4.3 - 5.2%

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,  
     2015     2014     2013  

Service cost

   $ 433      $ 387      $ 392   

Interest cost

     135        104        137   

Recognized actuarial (gains)

     (41     (50     (60
  

 

 

   

 

 

   

 

 

 

Net periodic benefit cost

     527        441        469   

Unrealized net actuarial (gains), net of tax

     (1,029     (1,008     (1,150
  

 

 

   

 

 

   

 

 

 

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

   $ (502   $ (567   $ (681
  

 

 

   

 

 

   

 

 

 

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

 

Years Ending December 31,

   Amount  

2016

   $ 143   

2017

     69   

2018

     45   

2019

     253   

2020

     157   

2021 - 2025

     964   

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

 

     Years Ended December 31,  
     2015      2014      2013  

401(k) plan contributions

   $ 832       $ 870       $ 895   
  

 

 

    

 

 

    

 

 

 

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,  
     2015      2014  

Postretirement benefit obligation

   $ 37       $ 46   

Unrealized gains (losses) in AOCI (1)

     267         342   

 

(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,  
     2015     2014     2013  

Stock-based compensation (expense) (1)

   $ (8,749   $ (6,381   $ (4,873

Income tax benefit (2)

     3,281        2,233        1,706   

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

     422        (82     (187

 

(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,  
     2015     2014     2013  

Expected volatility

     34.1     38.9     45.2

Weighted-average volatility

     34.1     38.9     45.2

Expected dividend rate

     0.0     0.0     0.0

Expected term (in years)

     5.0        5.0        5.0   

Risk-free rate

     1.6     1.7     0.8

The following table summarizes SARs activity as of December 31, 2015 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, 2015

     959      $ —           

Granted

     217      $ —           

Exercised

     (695   $ —           

Forfeited or expired

     —        $ —           
  

 

 

         

Outstanding at December 31, 2015

     481      $ —           8.1       $ 4,366   
  

 

 

   

 

 

    

 

 

    

 

 

 

Vested or expected to vest at December 31, 2015

     481      $ —           8.1       $ 4,366   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at December 31, 2015

     57      $ —           4.7       $ 508   
  

 

 

   

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2015      2014      2013  

Number of SARs granted

     217         246         318   

Weighted average grant-date fair value per SAR

   $ 8.17       $ 7.20       $ 6.08   

Intrinsic value of SARs exercised

   $ 5,957       $ 391       $ 488   

Fair value of SARs vested

   $ 1,302       $ 1,553       $ 1,298   

The following table summarizes nonvested SARs activity as of December 31, 2015 and for the year then ended:

 

Nonvested Stock Appreciation Rights

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

Nonvested at January 1, 2015

     411      $ 6.61   

Granted

     217      $ 8.17   

Vested

     (204   $ 6.41   

Forfeited or expired

     —        $ —     
  

 

 

   

Nonvested at December 31, 2015

     424      $ 7.50   
  

 

 

   

The following table summarizes nonvested restricted shares/RSUs activity as of December 31, 2015 and for the year then ended:

 

Nonvested Restricted Shares and RSUs

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

Nonvested at January 1, 2015

     1,194      $ 16.80   

Granted

     441      $ 25.06   

Vested

     (125   $ 16.10   

Forfeited or expired

     (264   $ 15.71   
  

 

 

   

Nonvested at December 31, 2015

     1,246      $ 20.03   
  

 

 

   

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

 

     Years Ended December 31,  
     2015      2014      2013  

Number of restricted shares/RSUs granted

     441         500         706   

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

   $ 25.06       $ 19.77       $ 15.25   

Fair value of restricted shares/RSUs vested

   $ 2,019       $ 895       $ 366   

The following table summarizes nonvested common stock share award activity as of December 31, 2015 and for the year then ended:

 

Nonvested Common Stock Share Awards

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

Nonvested at January 1, 2015

     12      $ 20.24   

Granted

     32      $ 24.70   

Vested

     (33   $ 23.43   

Forfeited or expired

     —        $ —     
  

 

 

   

Nonvested at December 31, 2015

     11      $ 23.74   
  

 

 

   

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

 

     Years Ended December 31,  
     2015      2014      2013  

Number of share awards granted

     32         36         37   

Weighted average grant-date fair value per share award

   $ 24.70       $ 20.15       $ 16.01   

Fair value of share awards vested

   $ 790       $ 630       $ 669   

The following table summarizes nonvested common stock activity as of December 31, 2015 and for the year then ended:

 

Nonvested Common Stock

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

Nonvested at January 1, 2015

     5      $ 17.88   

Granted

     8      $ 25.06   

Vested

     (10   $ 23.12   

Forfeited or expired

     —        $ —     
  

 

 

   

Nonvested at December 31, 2015

     3      $ 19.53   
  

 

 

   

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

 

     Years Ended December 31,  
     2015      2014      2013  

Number of shares of common stock granted

     8         10         13   

Weighted average grant-date fair value per common stock

   $ 25.06       $ 20.54       $ 16.76   

Fair value of common stock vested

   $ 244       $ 212       $ 257   

Cash used to settle the obligation

   $ 65       $ 1,493       $ 1,014   
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, 2015:

        

Revenues

   $ 1,045,415      $ 240,826      $ 99      $ 1,286,340   

Percentage of revenues

     81.3     18.7     0.0     100.0

 

Depreciation, net

   $ 37,842      $ 4,559      $ 1,351      $ 43,752   

Amortization of intangibles

   $ 13,648      $ 522      $ —        $ 14,170   

 

Income (loss) from operations

   $ 135,443      $ 15,336      $ (56,515   $ 94,264   

Other (expense), net

         (4,281     (4,281

Income taxes

         (21,386     (21,386
        

 

 

 

Net income

         $ 68,597   
        

 

 

 

 

Total assets as of December 31, 2015

   $ 1,058,467      $ 1,419,578      $ (1,530,273   $ 947,772   
  

 

 

   

 

 

   

 

 

   

 

 

 

Year Ended December 31, 2014:

        

Revenues

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

Percentage of revenues

     80.7     19.3     0.0     100.0

 

Depreciation, net

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

Amortization of intangibles

   $ 14,396      $ —        $ —        $ 14,396   

 

Income (loss) from operations

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

Other (expense), net

         (2,396     (2,396

Income taxes

         (19,368     (19,368
        

 

 

 

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

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

Percentage of revenues

     83.2     16.8     0.0     100.0

 

Depreciation, net

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

Amortization of intangibles

   $ 14,863      $ —        $ —        $ 14,863   

 

Income (loss) from operations

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

Other (expense), net

         (2,202     (2,202

Income taxes

         (14,065     (14,065
        

 

 

 

Net income

         $ 37,260   
        

 

 

 

 

Total assets as of December 31, 2013

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

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

Other items (including corporate and other costs, impairment 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, 2015, 2014 and 2013. 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 operations, and does not include segment assets or other income and expense items for management reporting purposes.

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

 

     Years Ended December 31,  
     2015      2014      2013  

Revenues: (1)

        

United States

   $ 422,584       $ 425,746       $ 388,775   

The Philippines

     216,170         205,332         213,132   

Canada

     133,549         195,739         210,463   

Costa Rica

     114,483         97,295         101,888   

El Salvador

     63,462         52,609         46,301   

China

     36,270         32,167         25,478   

Australia

     23,960         33,126         36,725   

Mexico

     18,338         20,439         23,701   

Colombia

     7,381         3,073         —     

Brazil

     5,442         3,005         3,288   

India

     3,776         2,293         1,062   
  

 

 

    

 

 

    

 

 

 

Total Americas

     1,045,415         1,070,824         1,050,813   
  

 

 

    

 

 

    

 

 

 

Germany

     82,120         88,887         77,950   

Sweden

     56,600         68,057         49,953   

United Kingdom

     50,209         42,328         33,750   

Romania

     15,474         18,288         14,856   

Hungary

     9,164         8,723         8,525   

Norway

     8,382         10,265         6,768   

Finland

     4,643         4,295         4,936   

Denmark

     3,898         4,578         4,739   

Netherlands

     3,783         3,126         3,073   

Egypt

     3,552         4,633         4,810   

Slovakia

     3,001         3,519         3,287   
  

 

 

    

 

 

    

 

 

 

Total EMEA

     240,826         256,699         212,647   
  

 

 

    

 

 

    

 

 

 

Total Other

     99         —           —     
  

 

 

    

 

 

    

 

 

 
   $ 1,286,340       $ 1,327,523       $ 1,263,460   
  

 

 

    

 

 

    

 

 

 

 

(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.

 

Information about the Company’s long-lived assets by geographic location was as follows (in thousands):

 

     December 31,  
     2015      2014  

Long-Lived Assets: (1)

     

United States

   $ 93,941       $ 108,030   

The Philippines

     10,844         14,656   

Canada

     10,278         16,257   

Costa Rica

     7,382         5,625   

El Salvador

     3,329         3,298   

China

     3,523         4,417   

Australia

     2,396         2,923   

Mexico

     1,307         1,575   

Colombia

     1,299         1,514   

Brazil

     1,047         844   

India

     301         223   
  

 

 

    

 

 

 

Total Americas

     135,647         159,362   
  

 

 

    

 

 

 

Germany

     1,973         2,310   

Sweden

     1,681         2,478   

United Kingdom

     3,652         3,871   

Romania

     678         682   

Hungary

     536         442   

Norway

     278         490   

Finland

     226         92   

Denmark

     81         95   

Netherlands

     7,243         9   

Egypt

     105         172   

Slovakia

     —           497   
  

 

 

    

 

 

 

Total EMEA

     16,453         11,138   
  

 

 

    

 

 

 

Total Other

     10,758         —     
  

 

 

    

 

 

 
   $ 162,858       $ 170,500   
  

 

 

    

 

 

 

 

(1)

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

Goodwill by segment was as follows (in thousands):

 

     December 31,  
     2015      2014  

Americas

   $ 186,049       $ 193,831   

EMEA

     9,684         —     
  

 

 

    

 

 

 
   $ 195,733       $ 193,831   
  

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2015      2014      2013  

Outsourced customer contract management services

   $ 1,261,465       $ 1,303,607       $ 1,240,328   

Fulfillment services

     21,434         18,392         16,953   

Enterprise support services

     3,441         5,524         6,179   
  

 

 

    

 

 

    

 

 

 
   $ 1,286,340       $ 1,327,523       $ 1,263,460   
  

 

 

    

 

 

    

 

 

 

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

 

     Years Ended December 31,  
     2015     2014     2013  
     Amount      % of Revenues     Amount      % of Revenues     Amount      % of Revenues  

Americas

   $ —           0.0   $ —           0.0   $ —           0.0

EMEA

     68,720         28.5     79,811         31.1     55,123         25.9
  

 

 

      

 

 

      

 

 

    
   $ 68,720         5.3   $ 79,811         6.0   $ 55,123         4.4
  

 

 

      

 

 

      

 

 

    

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

 

     Years Ended December 31,  
     2015     2014     2013  
     Amount      % of Revenues     Amount      % of Revenues     Amount      % of Revenues  

Americas

   $ 217,449         20.8   $ 212,607         19.9   $ 162,888         15.5

EMEA

     3,003         1.2     3,519         1.4     3,513         1.7
  

 

 

      

 

 

      

 

 

    
   $ 220,452         17.1   $ 216,126         16.3   $ 166,401         13.2
  

 

 

      

 

 

      

 

 

    

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

 

     Years Ended December 31,  
     2015     2014     2013  
     Amount      % of Revenues     Amount      % of Revenues     Amount      % of Revenues  

Americas

   $ 62,980         6.0   $ 70,255         6.6   $ 73,226         7.0

EMEA

     —           0.0     —           0.0     —           0.0
  

 

 

      

 

 

      

 

 

    
   $ 62,980         4.9   $ 70,255         5.3   $ 73,226         5.8
  

 

 

      

 

 

      

 

 

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

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

 

     Years Ended December 31,  
     2015     2014     2013  

Foreign currency transaction gains (losses)

   $ (2,924   $ (1,740   $ (5,962

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

     1,374        (44     4,216   

Gains (losses) on liquidation of foreign subsidiaries

     (647     —          —     

Other miscellaneous income (expense)

     (287     441        985   
  

 

 

   

 

 

   

 

 

 
   $ (2,484   $ (1,343   $ (761
  

 

 

   

 

 

   

 

 

 
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
CompensationPlan
Segment
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
 
 
 
Number of reportable segments
 
 
 
Percentage of total consolidated revenues representing fulfillment services contracts
1.60% 
1.40% 
1.30% 
 
Cash and cash equivalents
$ 235,358 
$ 215,137 
$ 211,985 
$ 187,322 
Interest bearing investments, original maturities
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
 
 
 
Fair value discount rate
14.00% 
 
 
 
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
$ 221,700 
$ 194,400 
 
 
Qelp [Member]
 
 
 
 
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
 
 
 
Acquisition date
Jul. 02, 2015 
 
 
 
Acquisitions - Additional Information (Detail)
0 Months Ended 12 Months Ended
Jul. 2, 2015
Qelp [Member]
USD ($)
Dec. 31, 2015
Qelp [Member]
EUR (€)
Dec. 31, 2015
Alpine Access, Inc [Member]
Americas [Member]
Aug. 31, 2012
Alpine Access, Inc [Member]
Americas [Member]
Business Acquisition [Line Items]
 
 
 
 
Consideration by cash
$ 9,885,000 
 
 
 
Maximum amount of contingent consideration
 
€ 10,000,000 
 
 
Contingent consideration expected payment period
 
3 years 
 
 
Contingent consideration description
 
The contingent purchase price to be paid over a three-year period is based on achieving targets tied to revenues and earnings before interest, income taxes, depreciation and amortization ("EBITDA") for the years ended December 31, 2016, 2017 and 2018, not to exceed EUR 10.0 million. 
 
 
Percentage of common shares and voting rights acquired
 
 
 
100.00% 
Acquisition date
 
Jul. 02, 2015 
Aug. 20, 2012 
 
Acquisitions - Summary of Estimated Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
EMEA [Member]
Jul. 31, 2015
Qelp [Member]
Jul. 2, 2015
Qelp [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
EMEA [Member]
As Initially Reported [Member]
Jul. 2, 2015
Qelp [Member]
EMEA [Member]
Measurement Period Adjustments [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
$ 450 
$ 450 
 
Receivables
 
 
 
 
 
1,471 
1,541 
(70)
Prepaid expenses
 
 
 
 
 
24 
24 
 
Total current assets
 
 
 
 
 
1,945 
2,015 
(70)
Property and equipment
 
 
 
 
 
2,168 
2,168 
 
Goodwill
195,733 
193,831 
199,802 
9,684 
9,900 
10,054 
9,574 
480 
Intangibles
 
 
 
 
 
6,000 
6,000 
 
Deferred charges and other assets
 
 
 
 
 
55 
55 
 
Short-term debt
 
 
 
 
 
(323)
(323)
 
Accrued employee compensation and benefits
 
 
 
 
 
(207)
(207)
 
Income taxes payable
 
 
 
 
 
(94)
(62)
(32)
Deferred revenue
 
 
 
 
 
(967)
(967)
 
Other accrued expenses and current liabilities
 
 
 
 
 
(1,030)
(1,030)
 
Total current liabilities
 
 
 
 
 
(2,621)
(2,589)
(32)
Other long-term liabilities
 
 
 
 
 
(1,781)
(1,403)
(378)
Purchase price, total
 
 
 
 
$ 15,600 
$ 15,820 
$ 15,820 
 
Acquisitions - 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
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Customer Relationships [Member]
Dec. 31, 2014
Customer Relationships [Member]
Dec. 31, 2015
Trade Name and Trademarks [Member]
Dec. 31, 2014
Trade Name and Trademarks [Member]
Dec. 31, 2015
Content Library [Member]
Jul. 2, 2015
Qelp [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Customer Relationships [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Customer Relationships [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Trade Name and Trademarks [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Trade Name and Trademarks [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Content Library [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Content Library [Member]
EMEA [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount Assigned
 
 
 
 
 
 
 
 
$ 6,000 
 
$ 5,400 
 
$ 100 
 
$ 500 
Weighted Average Amortization Period (years)
8 years 
8 years 
8 years 
8 years 
8 years 
8 years 
2 years 
7 years 
 
7 years 
 
3 years 
 
2 years 
 
Acquisitions - Revenues and Earnings of Acquired Entity Since Acquisition Date (Detail) (Qelp [Member], EMEA [Member], USD $)
In Thousands, unless otherwise specified
6 Months Ended
Dec. 31, 2015
Qelp [Member] |
EMEA [Member]
 
Business Acquisition [Line Items]
 
Revenues
$ 2,661 
Net (loss)
$ (162)
Acquisitions - Merger and Integration Costs (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Qelp [Member]
Other Items [Member]
General and Administrative [Member]
Dec. 31, 2013
Alpine Access, Inc [Member]
Dec. 31, 2013
Alpine Access, Inc [Member]
General and Administrative [Member]
Dec. 31, 2013
Alpine Access, Inc [Member]
Direct Salaries and Related Costs [Member]
Dec. 31, 2013
Alpine Access, Inc [Member]
Americas [Member]
General and Administrative [Member]
Dec. 31, 2013
Alpine Access, Inc [Member]
Americas [Member]
Direct Salaries and Related Costs [Member]
Dec. 31, 2013
Alpine Access, Inc [Member]
Other Items [Member]
General and Administrative [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Transaction costs
$ 455 
 
 
 
 
 
 
Severance costs:
 
 
 
 
 
 
 
Severance costs
 
 
1,144 
526 
985 
526 
159 
Transaction and integration costs:
 
 
 
 
 
 
 
Transaction and integration costs
 
 
444 
 
 
 
444 
Total merger and integration costs
 
$ 2,114 
 
 
 
 
 
Costs Associated with Exit or Disposal Activities - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Employees
Restructuring and Related Activities [Abstract]
 
Estimated employee rationalization associated with exit or disposal activities
800 
Cash payment related to restructuring plan
$ 15.3 
Lease termination date
Feb. 28, 2017 
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, 2015
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 - Summary of Accrued Liability Associated with Company's Exit Plans (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Short-term accrued restructuring liability
$ 631 
$ 630 
 
 
Ending accrual
733 
1,558 
2,974 
3,969 
Other Accrued Expenses and Current Liabilities [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Short-term accrued restructuring liability
631 
630 
 
 
Other Long-Term Liabilities [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Long-term accrued restructuring liability
102 
928 
 
 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Ending accrual
166 
312 
 
 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Short-term accrued restructuring liability
144 
109 
 
 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member] |
Other Long-Term Liabilities [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Long-term accrued restructuring liability
22 
203 
 
 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Ending accrual
567 
1,246 
 
 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Short-term accrued restructuring liability
487 
521 
 
 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member] |
Other Long-Term Liabilities [Member]
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Long-term accrued restructuring liability
$ 80 
$ 725 
 
 
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Assets:
 
 
Foreign currency forward and option contracts
$ 10,962 
$ 1,489 
Foreign currency forward and option contracts
 
4,060 
Total assets
18,899 
113,505 
Liabilities:
 
 
Long-term debt
70,000 
75,000 
Total liabilities
77,115 
76,261 
Other Accrued Expenses and Current Liabilities [Member]
 
 
Liabilities:
 
 
Foreign currency forward and option contracts
835 
1,261 
Other Long-Term Liabilities [Member]
 
 
Liabilities:
 
 
Contingent consideration included in "Other long-term liabilities"
6,280 
 
Foreign Currency Forward and Option Contracts [Member] |
Other Current Assets [Member]
 
 
Assets:
 
 
Foreign currency forward and option contracts
10,962 
1,489 
Foreign Currency Forward and Option Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
Liabilities:
 
 
Foreign currency forward and option contracts
835 
1,261 
Foreign Currency Forward Contracts [Member] |
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] |
Other Current Assets [Member]
 
 
Assets:
 
 
Investments held in a rabbi trust for the Deferred Compensation Plan
6,229 
5,589 
Debt Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member] |
Other Current Assets [Member]
 
 
Assets:
 
 
Investments held in a rabbi trust for the Deferred Compensation Plan
1,622 
1,363 
Guaranteed Investment Certificates [Member] |
Deferred Charges and Other Assets [Member]
 
 
Assets:
 
 
"Money market funds, open-end mutual funds and guaranteed investment certificates included in "Deferred charges and other assets"
86 
79 
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 
"Money market funds, open-end mutual funds and guaranteed investment certificates included in "Deferred charges and other assets"
 
10 
Quoted Prices in Active Markets For Identical Assets Level 1 [Member]
 
 
Assets:
 
 
Total assets
7,851 
107,877 
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] |
Equity Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member] |
Other Current Assets [Member]
 
 
Assets:
 
 
Investments held in a rabbi trust for the Deferred Compensation Plan
6,229 
5,589 
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] |
Debt Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member] |
Other Current Assets [Member]
 
 
Assets:
 
 
Investments held in a rabbi trust for the Deferred Compensation Plan
1,622 
1,363 
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 
"Money market funds, open-end mutual funds and guaranteed investment certificates included in "Deferred charges and other assets"
 
10 
Significant Other Observable Inputs Level 2 [Member]
 
 
Assets:
 
 
Total assets
11,048 
5,628 
Liabilities:
 
 
Long-term debt
70,000 
75,000 
Total liabilities
70,835 
76,261 
Significant Other Observable Inputs Level 2 [Member] |
Foreign Currency Forward and Option Contracts [Member] |
Other Current Assets [Member]
 
 
Assets:
 
 
Foreign currency forward and option contracts
10,962 
1,489 
Significant Other Observable Inputs Level 2 [Member] |
Foreign Currency Forward and Option Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
Liabilities:
 
 
Foreign currency forward and option contracts
835 
1,261 
Significant Other Observable Inputs Level 2 [Member] |
Foreign Currency Forward Contracts [Member] |
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] |
Deferred Charges and Other Assets [Member]
 
 
Assets:
 
 
"Money market funds, open-end mutual funds and guaranteed investment certificates included in "Deferred charges and other assets"
86 
79 
Significant Unobservable Inputs Level 3 [Member]
 
 
Liabilities:
 
 
Total liabilities
6,280 
 
Significant Unobservable Inputs Level 3 [Member] |
Other Long-Term Liabilities [Member]
 
 
Liabilities:
 
 
Contingent consideration included in "Other long-term liabilities"
$ 6,280 
 
Fair Value - Rollforward of Fair Value of Contingent Consideration (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Jul. 2, 2015
Business Acquisition, Contingent Consideration [Line Items]
 
 
Imputed interest/adjustments
$ (408)
 
Qelp [Member]
 
 
Business Acquisition, Contingent Consideration [Line Items]
 
 
Contingent consideration, Beginning Balance
 
6,000 
Acquisition
6,000 
 
Cash payments
 
Imputed interest/adjustments
408 
 
Effect of foreign currency
(128)
 
Contingent Consideration, Ending Balance
$ 6,280 
$ 6,000 
Fair Value - Additional Information (Detail) (Qelp [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2015
Qelp [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Expected future value of contingent consideration
$ 9.1 
Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
$ 117,272 
$ 114,827 
Accumulated Amortization
(66,376)
(54,207)
Net Intangibles
50,896 
60,620 
Weighted Average Amortization Period (years)
8 years 
8 years 
Customer Relationships [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
102,594 
100,719 
Accumulated Amortization
(58,294)
(47,571)
Net Intangibles
44,300 
53,148 
Weighted Average Amortization Period (years)
8 years 
8 years 
Trade Name and Trademarks [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
11,698 
11,600 
Accumulated Amortization
(5,470)
(4,128)
Net Intangibles
6,228 
7,472 
Weighted Average Amortization Period (years)
8 years 
8 years 
Non-Compete Agreements [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
1,190 
1,209 
Accumulated Amortization
(1,190)
(1,209)
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)
(850)
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)
(449)
Weighted Average Amortization Period (years)
2 years 
2 years 
Content Library [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
491 
 
Accumulated Amortization
(123)
 
Net Intangibles
$ 368 
 
Weighted Average Amortization Period (years)
2 years 
 
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
2016
$ 14,489 
2017
14,366 
2018
8,198 
2019
7,605 
2020
5,104 
2021 and thereafter
$ 1,134 
Goodwill and Intangible Assets - Changes in Goodwill (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Goodwill [Line Items]
 
 
Beginning Balance, Goodwill Net
$ 193,831 
$ 199,802 
Acquisition
10,054 
 
Effect of Foreign Currency
(8,152)
(5,971)
Ending Balance, Goodwill Net
195,733 
193,831 
Americas [Member]
 
 
Goodwill [Line Items]
 
 
Beginning Balance, Goodwill Net
193,831 
199,802 
Effect of Foreign Currency
(7,782)
(5,971)
Ending Balance, Goodwill Net
186,049 
193,831 
EMEA [Member]
 
 
Goodwill [Line Items]
 
 
Acquisition
10,054 
 
Effect of Foreign Currency
(370)
 
Ending Balance, Goodwill Net
$ 9,684 
 
Goodwill and Intangible Assets - Additional Information (Detail) (USD $)
12 Months Ended 12 Months Ended
Dec. 31, 2015
Reporting_Unit
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Qelp [Member]
Jul. 31, 2015
Qelp [Member]
Goodwill [Line Items]
 
 
 
 
 
Number of reporting units
 
 
 
 
Number of reporting units, fair value in excess of carrying value
 
 
 
 
Acquisition date
 
 
 
Jul. 02, 2015 
 
Purchase price of acquisition, carrying value
 
 
 
 
$ 15,600,000 
Goodwill
195,733,000 
193,831,000 
199,802,000 
 
9,900,000 
Goodwill Impairment Loss
 
 
 
$ 0 
 
Receivable, Net - Receivable, Net (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Receivables, Net, Current [Abstract]
 
 
Trade accounts receivable
$ 271,729 
$ 290,711 
Income taxes receivable
4,976 
993 
Other
3,965 
3,354 
Receivables, gross
280,670 
295,058 
Less: Allowance for doubtful accounts
3,574 
4,661 
Receivables, net
$ 277,096 
$ 290,397 
Allowance for doubtful accounts as a percent of trade receivables
1.30% 
1.60% 
Prepaid Expenses - Prepaid Expenses, Net (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Prepaid Expense, Current [Abstract]
 
 
Prepaid maintenance
$ 7,509 
$ 5,315 
Prepaid insurance
4,207 
3,112 
Prepaid rent
1,919 
3,147 
Prepaid other
3,686 
3,322 
Total prepaid expenses
$ 17,321 
$ 14,896 
Other Current Assets - Other Current Assets, Net (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
Deferred tax assets (Note 20)
$ 12,009 
$ 13,703 
Financial derivatives (Note 10)
10,962 
1,489 
Investments held in rabbi trust (Note 11)
7,851 
6,952 
Value added tax certificates
 
6,303 
Other current assets
2,440 
1,209 
Total other current assets
$ 33,262 
$ 29,656 
Financial Derivatives - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
 
Maximum period of foreign currency hedge contracts
180 days 
 
Maximum amount of loss due to credit risk
$ 11,000,000 
$ 5,500,000 
Total net settlement amount asset positions
10,200,000 
4,400,000 
Total net settlement amount liability positions
$ 100,000 
$ 100,000 
Financial Derivatives - Outstanding Foreign Currency Forward Contracts and Options (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Option Contracts [Member] |
Philippine Pesos [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
$ 71,750 
$ 73,000 
Settle Through Date
Dec. 31, 2016 
Dec. 31, 2015 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Forwards [Member] |
Philippine Pesos [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
 
9,000 
Settle Through Date
 
Mar. 31, 2015 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Forwards [Member] |
Costa Rican Colones [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
34,500 
51,600 
Settle Through Date
Nov. 30, 2016 
Oct. 31, 2015 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Forwards [Member] |
Romanian Leis [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
 
10,414 
Settle Through Date
 
Dec. 31, 2015 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Net Investment Hedges [Member] |
Forwards [Member] |
Euros [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
63,470 
51,648 
Settle Through Date
Mar. 31, 2016 
Mar. 31, 2016 
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Forwards [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
$ 50,603 
$ 64,541 
Settle Through Date
Mar. 31, 2016 
Mar. 31, 2015 
Financial Derivatives - Derivative Instruments Fair Value (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
$ 10,962 
$ 1,489 
Derivative Assets
 
4,060 
Derivative Assets
10,962 
5,549 
Derivative Liabilities
835 
1,261 
Other Accrued Expenses and Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liabilities
835 
1,261 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Option Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
10,705 
5,034 
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
257 
515 
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
439 
855 
Cash Flow Hedges [Member] |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Current Assets [Member] |
Option Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
544 
974 
Cash Flow Hedges [Member] |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member] |
Option Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liabilities
396 
406 
Net Investment Hedges [Member] |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
10,161 
 
Net Investment Hedges [Member] |
Derivatives Designated as 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 
Financial Derivatives - Effect of Company's Derivative Instruments (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
$ 7,797 
$ 3,557 
$ (4,543)
Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)
2,138 
(5,339)
(666)
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
12 
(3)
119 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Foreign Currency Forward Contracts [Member] |
Option Contracts [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
1,696 
(2,787)
(2,823)
Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)
2,138 
(5,339)
(666)
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
12 
(3)
119 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Net Investment Hedges [Member] |
Foreign Currency Forward Contracts [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
6,101 
6,344 
(1,720)
Other Income (Expense) [Member] |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Gain (Loss) Recognized on Derivatives
$ 1,374 
$ (44)
$ 4,216 
Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Mutual funds, Fair Value
$ 7,851 
$ 6,952 
Mutual Funds [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Mutual funds, Cost
6,217 
5,160 
Other Current Assets [Member] |
Mutual Funds [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Mutual funds, Fair Value
$ 7,851 
$ 6,952 
Investments Held in Rabbi Trust - Additional Information (Detail)
Dec. 31, 2015
Equity-Based Securities [Member]
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
Mutual funds held in rabbi trust
79.00% 
Debt-Based Securities [Member]
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
Mutual funds held in rabbi trust
21.00% 
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, 2015
Dec. 31, 2014
Dec. 31, 2013
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
 
Gross realized gains from sale of trading securities
$ 356 
$ 586 
$ 160 
Gross realized (losses) from sale of trading securities
(1)
 
(10)
Dividend and interest income
79 
58 
279 
Net unrealized holding gains (losses)
(597)
(276)
568 
Other Income (Expense) [Member]
 
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
 
Net investment income (losses)
$ (163)
$ 368 
$ 997 
Property and Equipment - Property and Equipment (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
$ 418,914 
$ 408,808 
Less: Accumulated depreciation
306,952 
298,928 
Property and equipment, net
111,962 
109,880 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
3,447 
3,600 
Buildings and Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
96,926 
94,786 
Equipment, Furniture and Fixtures [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
291,993 
293,857 
Capitalized Internally Developed Software Costs [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
17,299 
7,963 
Property and equipment, net
8,135 
1,270 
Transportation Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
546 
531 
Construction in Progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
$ 8,703 
$ 8,071 
Property and Equipment - Capitalized Internally Developed Software, Net of Depreciation (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, net
$ 111,962 
$ 109,880 
Capitalized Internally Developed Software Costs [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, net
$ 8,135 
$ 1,270 
Property and Equipment - Additional Information (Detail) (USD $)
12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Jul. 31, 2015
Perry County Kentucky Buchanan County Virginia and Wise Virginia Facilities [Member]
Land and Building [Member]
Apr. 30, 2015
Perry County Kentucky Buchanan County Virginia and Wise Virginia Facilities [Member]
Land and Building [Member]
Feb. 28, 2015
Perry County Kentucky Buchanan County Virginia and Wise Virginia Facilities [Member]
Land and Building [Member]
Dec. 31, 2015
Perry County Kentucky Buchanan County Virginia and Wise Virginia Facilities [Member]
General and Administrative [Member]
Land and Building [Member]
Nov. 30, 2014
Bismarck, North Dakota [Member]
Land and Building [Member]
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
 
Estimated amount of losses to be recovered
 
 
 
 
 
$ 1,600,000 
 
 
Insurance recoveries for clean up and repairs
 
 
 
1,100,000 
500,000 
 
 
 
Net gain on insurance settlement
919,000 
 
 
 
 
 
900,000 
 
Proceeds from sale of assets
616,000 
3,639,000 
388,000 
 
 
 
 
3,100,000 
Selling costs
 
 
 
 
 
 
 
200,000 
Net gain on sale
(381,000)
2,030,000 
(201,000)
 
 
 
 
2,600,000 
Property and equipment, net
$ 111,962,000 
$ 109,880,000 
 
 
 
 
 
$ 500,000 
Deferred Charges and Other Assets - Components of Deferred Charges and Other Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
Non-current mandatory tax security deposits (Note 20)
$ 13,418 
$ 15,906 
Rent and other deposits
3,803 
3,215 
Non-current deferred tax assets (Note 20)
1,899 
1,681 
Non-current value added tax receivables
673 
856 
Foreign currency forward contracts (Note 10)
 
4,060 
Other
6,351 
4,365 
Deferred charges and other assets, total
$ 26,144 
$ 30,083 
Accrued Employee Compensation and Benefits - Components of Accrued Employee Compensation and Benefits (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Employee-related Liabilities, Current [Abstract]
 
 
Accrued compensation
$ 28,215 
$ 32,786 
Accrued bonus and commissions
17,754 
18,590 
Accrued vacation
16,439 
16,613 
Accrued employment taxes
8,465 
9,362 
Other
6,373 
4,721 
Accrued employee compensation and benefits
$ 77,246 
$ 82,072 
Deferred Revenue - Components of Deferred Revenue (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Deferred Revenue Disclosure [Abstract]
 
 
Future service
$ 22,112 
$ 25,222 
Estimated potential penalties and holdbacks
6,007 
9,023 
Deferred revenue
$ 28,119 
$ 34,245 
Other Accrued Expenses and Current Liabilities - Other Accrued Expenses and Current Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Derivatives, Fair Value [Line Items]
 
 
Accrued legal and professional fees
$ 3,079 
$ 4,508 
Accrued rent
1,812 
640 
Accrued roadside assistance claim costs
1,405 
1,878 
Accrued telephone charges
1,381 
1,068 
Accrued utilities
1,097 
1,329 
Accrued equipment and software
935 
2,196 
Customer deposits
714 
793 
Accrued restructuring (Note 3)
631 
630 
Other
9,587 
7,913 
Total
21,476 
22,216 
Other Accrued Expenses and Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Foreign currency forward and option contracts (Note 10)
835 
1,261 
Accrued restructuring (Note 3)
$ 631 
$ 630 
Deferred Grants - Schedule of Deferred Grants (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
 
 
Total deferred grants
$ 5,039 
$ 5,317 
Less: Property grants - short-term
Less: Lease grants - short-term
(80)
 
Less: Employment grants - short-term
(149)
(207)
Total long-term deferred grants
4,810 
5,110 
Total deferred grants
5,039 
5,317 
Other Long-Term Liabilities [Member]
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Property grants
4,377 
5,110 
Lease grants
513 
 
Other Accrued Expenses and Current Liabilities [Member]
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Employment grants
$ 149 
$ 207 
Borrowings - Additional Information (Detail) (USD $)
12 Months Ended 1 Months Ended
Dec. 31, 2015
2015 Credit Agreement [Member]
May 31, 2015
2015 Credit Agreement [Member]
May 12, 2015
2015 Credit Agreement [Member]
Dec. 31, 2015
2015 Credit Agreement [Member]
Non-Voting Capital Stock Direct Foreign Subsidiaries [Member]
Dec. 31, 2015
2015 Credit Agreement [Member]
Voting Capital Stock Direct Foreign Subsidiaries [Member]
May 31, 2015
2012 Credit Agreement [Member]
Dec. 31, 2015
2012 Credit Agreement [Member]
May 3, 2012
2012 Credit Agreement [Member]
May 12, 2015
2015 Credit Agreement Alternate-Currency Sub-Facility [Member]
May 12, 2015
2015 Credit Agreement Swingline Sub-Facility [Member]
May 12, 2015
2015 Credit Agreement Letter of Credit Sub-Facility [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
$ 440,000,000 
 
 
 
 
$ 245,000,000 
$ 200,000,000 
$ 10,000,000 
$ 35,000,000 
Line of credit facility, expiration date
May 12, 2020 
 
 
 
 
 
 
 
 
 
 
Varying installments due
 
 
 
 
 
 
 
 
 
 
Credit agreement interest rate description
Borrowings under the 2015 Credit Agreement will bear interest at either LIBOR or the base rate plus, in each case, an applicable margin based on the Company’s leverage ratio. The applicable interest rate will be determined quarterly based on the Company’s leverage ratio at such time. The base rate is a rate per annum equal to the greatest of (i) the rate of interest established by KeyBank, from time to time, as its “prime rate”; (ii) the Federal Funds effective rate in effect from time to time, plus 1/2 of 1% per annum; and (iii) the then-applicable LIBOR rate for one month interest periods, plus 1.00%. Swingline loans will bear interest only at the base rate plus the base rate margin. 
 
 
 
 
 
 
 
 
 
 
Fixed component added to federal fund effective rate to compute base rate
0.50% 
 
 
 
 
 
 
 
 
 
 
Fixed component added to LIBOR to compute base rate
1.00% 
 
 
 
 
 
 
 
 
 
 
Commitment fee
0.125% 
 
 
 
 
 
 
 
 
 
 
Credit agreement customary fees description
The Company is required to pay certain customary fees, including a commitment fee of 0.125%, which is due quarterly in arrears and calculated on the average unused amount of the 2015 Credit Agreement. 
 
 
 
 
 
 
 
 
 
 
Percentage of capital stock pledged under credit agreement
 
 
 
100.00% 
65.00% 
 
 
 
 
 
 
Underwriting fee for credit agreement
 
900,000 
 
 
 
 
400,000 
 
 
 
 
Deferred loan fees expensed
 
 
 
 
 
$ 100,000 
 
 
 
 
 
Borrowings - Components of Borrowings (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Line of Credit Facility [Line Items]
 
 
Total long-term debt
$ 70,000 
$ 75,000 
Revolving Credit Facility [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Revolving credit facility
70,000 
75,000 
Less: Current portion
Total long-term debt
$ 70,000 
$ 75,000 
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
$ (20,561)
$ 7,997 
$ 14,856 
Pre-tax amount
(29,260)
(31,366)
(8,152)
Tax (provision) benefit
(2,177)
(2,345)
1,067 
Reclassification of (gain) loss to net income
(1,664)
5,153 
226 
Ending balance, accumulated other comprehensive income (loss)
(53,662)
(20,561)
7,997 
Foreign Currency Translation Gain (Loss) [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
(22,076)
12,751 
16,083 
Pre-tax amount
(37,178)
(34,947)
(3,465)
Reclassification of (gain) loss to net income
647 
 
 
Foreign currency translation
120 
133 
Ending balance, accumulated other comprehensive income (loss)
(58,601)
(22,076)
12,751 
Unrealized Gain (Loss) on Net Investment Hedges [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
276 
(3,683)
(2,565)
Pre-tax amount
6,101 
6,344 
(1,720)
Tax (provision) benefit
(2,207)
(2,385)
602 
Ending balance, accumulated other comprehensive income (loss)
4,170 
276 
(3,683)
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
1,008 
1,150 
1,413 
Pre-tax amount
121 
(50)
(136)
Tax (provision) benefit
(2)
57 
16 
Reclassification of (gain) loss to net income
(53)
(35)
(41)
Foreign currency translation
(45)
(114)
(102)
Ending balance, accumulated other comprehensive income (loss)
1,029 
1,008 
1,150 
Unrealized Gain (Loss) on Cash Flow Hedging Instruments [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
(111)
(2,535)
(570)
Pre-tax amount
1,708 
(2,790)
(2,704)
Tax (provision) benefit
32 
(17)
449 
Reclassification of (gain) loss to net income
(2,195)
5,237 
321 
Foreign currency translation
39 
(6)
(31)
Ending balance, accumulated other comprehensive income (loss)
(527)
(111)
(2,535)
Unrealized Gain (Loss) on Post Retirement Obligation [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Beginning balance, accumulated other comprehensive income (loss)
342 
314 
495 
Pre-tax amount
(12)
77 
(127)
Reclassification of (gain) loss to net income
(63)
(49)
(54)
Ending balance, accumulated other comprehensive income (loss)
$ 267 
$ 342 
$ 314 
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, 2015
Dec. 31, 2014
Dec. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
Pre-tax amount
$ 89,983 
$ 77,159 
$ 51,325 
Tax (provision) benefit
21,386 
19,368 
14,065 
Reclassification of gain (loss) to net income
68,597 
57,791 
37,260 
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
Reclassification of gain (loss) to net income
1,664 
(5,153)
(226)
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Foreign Currency Translation Gain (Loss) [Member]
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
Reclassification of gain (loss) to net income
(647)
 
 
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
12 
(15)
(19)
Reclassification of gain (loss) to net income
53 
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
45 
105 
226 
Reclassification of gain (loss) to net income
2,195 
(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]
 
 
 
Reclassification of gain (loss) to net income
63 
49 
54 
Reclassification out of Accumulated Other Comprehensive Income [Member] |
Other Income (Expense) [Member] |
Foreign Currency Translation Gain (Loss) [Member]
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
Pre-tax amount
(647)
 
 
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
41 
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
2,150 
(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
$ 63 
$ 49 
$ 54 
Income Taxes - Income from Continuing Operations before Income Taxes (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]
 
 
 
Domestic (U.S., state and local)
$ 41,178 
$ 28,563 
$ 5,544 
Foreign
48,805 
48,596 
45,781 
Income before income taxes
$ 89,983 
$ 77,159 
$ 51,325 
Income Taxes - Significant Components of Income Tax Provision (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Current:
 
 
 
U.S. federal
$ 7,374 
$ 2,579 
$ 881 
State and local
1,051 
542 
82 
Foreign
10,446 
11,382 
13,464 
Total current provision for income taxes
18,871 
14,503 
14,427 
Deferred:
 
 
 
U.S. federal
3,873 
5,437 
866 
State and local
(1,227)
(446)
 
Foreign
(131)
(126)
(1,228)
Total deferred provision (benefit) for income taxes
2,515 
4,865 
(362)
Total provision for income taxes
$ 21,386 
$ 19,368 
$ 14,065 
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, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]
 
 
 
Net operating loss and tax credit carryforwards
$ 3,564 
$ 19,335 
$ 8,029 
Accrued expenses/liabilities
2,856 
(4,505)
954 
Depreciation and amortization
(2,231)
(6,220)
(5,030)
Valuation allowance
(1,958)
(3,706)
(1,887)
Deferred statutory income
266 
(29)
(2,425)
Other
18 
(10)
(3)
Total deferred provision (benefit) for income taxes
$ 2,515 
$ 4,865 
$ (362)
Income Taxes - Reconciliation of Income Tax Provision (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]
 
 
 
Tax at U.S. federal statutory tax rate
$ 31,494 
$ 27,005 
$ 17,964 
State income taxes, net of federal tax benefit
(177)
934 
82 
Foreign rate differential
(14,030)
(13,164)
(9,319)
Tax holidays
(4,031)
(2,749)
(4,686)
Permanent differences
11,737 
10,170 
9,051 
Tax credits
(4,102)
(4,894)
(5,020)
Foreign withholding and other taxes
2,321 
2,541 
4,643 
Change in valuation allowance, net of related adjustments
(631)
(7)
1,354 
Changes in uncertain tax positions
(1,858)
(468)
(4)
Other
663 
 
 
Total provision for income taxes
$ 21,386 
$ 19,368 
$ 14,065 
Income Taxes - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Tax [Line Items]
 
 
 
 
Withholding taxes related to offshore cash movements
$ 1,700,000 
$ 1,800,000 
$ 4,100,000 
 
Undistributed earnings of foreign subsidiaries
399,000,000 
 
 
 
Income tax holiday expiration dates
2016 through 2028 
 
 
 
Decrease in the amount of the provision for income taxes due to tax holidays
4,031,000 
2,749,000 
4,686,000 
 
Decrease in the amount per diluted share of the provision for income taxes due to tax holidays
$ 0.09 
$ 0.06 
$ 0.11 
 
Income tax loss carryforwards, total
153,500,000 
 
 
 
Unrecognized tax benefits
8,116,000 
13,285,000 
14,991,000 
16,897,000 
Unrecognized tax benefits that would impact effective tax rate
8,100,000 
13,300,000 
 
 
Decreases due to lapse in applicable statute of limitations
2,206,000 
 
390,000 
 
Accrued interest and penalties related to unrecognized tax benefits
10,400,000 
10,100,000 
 
 
Interest and penalties recognized in the accompanying Consolidated Statement of Operations
300,000 
(500,000)
400,000 
 
Amount of mandatory security deposit paid related to Notice of Objection
13,418,000 
15,906,000 
 
 
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
8,100,000 
10,600,000 
 
 
Foreign Operations [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Income tax loss carryforwards, total
113,600,000 
 
 
 
Operating loss carryforwards not recognized
104,000,000 
 
 
 
Foreign Operations [Member] |
Varying Expiration Dates [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Income tax loss carryforwards, total
19,200,000 
 
 
 
Tax credit carryforward expiration date
Dec. 31, 2036 
 
 
 
Foreign Operations [Member] |
Indefinite Expiration Date [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Income tax loss carryforwards, total
94,400,000 
 
 
 
U.S. State Operations [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Income tax loss carryforwards, total
39,900,000 
 
 
 
Benefit recognized from operating loss carryforward
 
 
 
Operating loss carryforwards not recognized
14,000,000 
 
 
 
Statutory Penalties [Member]
 
 
 
 
Income Tax [Line Items]
 
 
 
 
Accrued interest and penalties related to unrecognized tax benefits
$ 3,400,000 
$ 3,300,000 
 
 
Income Taxes - Schedule of Deferred Tax Assets and Liabilities Classifications (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Deferred tax assets:
 
 
Net operating loss and tax credit carryforwards
$ 32,328 
$ 35,400 
Valuation allowance
(30,065)
(34,146)
Accrued expenses
24,276 
25,694 
Deferred revenue
3,193 
3,757 
Depreciation and amortization
953 
835 
Other
54 
 
Deferred tax assets, total
30,739 
31,540 
Deferred tax liabilities:
 
 
Depreciation and amortization
(19,826)
(20,172)
Deferred statutory income
(579)
(772)
Accrued liabilities
(1,104)
(141)
Other
(119)
(1)
Deferred tax liabilities, total
(21,628)
(21,086)
Net deferred tax assets
$ 9,111 
$ 10,454 
Income Taxes - Significant Portions of Deferred Tax Assets and Liabilities Due to Temporary Differences (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Classified as follows:
 
 
Other current assets (Note 9)
$ 12,009 
$ 13,703 
Deferred charges and other assets (Note 13)
1,899 
1,681 
Current deferred income tax liabilities
(1,120)
(144)
Other long-term liabilities
(3,677)
(4,786)
Net deferred tax assets
$ 9,111 
$ 10,454 
Income Taxes - Reconciliation of Amounts of Unrecognized Net Tax Benefits (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Disclosure [Abstract]
 
 
 
Gross unrecognized tax benefits as of January 1,
$ 13,285 
$ 14,991 
$ 16,897 
Decreases due to lapse in applicable statute of limitations
(2,206)
 
(390)
Foreign currency translation increases (decreases)
(2,963)
(1,706)
(1,516)
Gross unrecognized tax benefits as of December 31,
$ 8,116 
$ 13,285 
$ 14,991 
Income Taxes - Summary of Significant Tax Jurisdictions Currently under Audit (Detail) (Canada [Member])
12 Months Ended
Dec. 31, 2015
Canada [Member]
 
Income Tax Examination [Line Items]
 
Significant tax jurisdictions currently under audit
2003 to 2009 
Income Taxes - Summary of Tax Jurisdictions and Open Tax Years (Detail)
12 Months Ended
Dec. 31, 2015
Canada [Member]
 
Income Tax Examination [Line Items]
 
Open tax years by major tax jurisdiction
2003 to present 
United States [Member]
 
Income Tax Examination [Line Items]
 
Open tax years by major tax jurisdiction
2012 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, 2015
Dec. 31, 2014
Dec. 31, 2013
Basic:
 
 
 
Weighted average common shares outstanding
41,899 
42,609 
42,877 
Diluted:
 
 
 
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in a rabbi trust
548 
205 
48 
Total weighted average diluted shares outstanding
42,447 
42,814 
42,925 
Anti-dilutive shares excluded from the diluted earnings per share calculation
20 
37 
42 
Earnings Per Share - Additional Information (Detail)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
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
860,000 
630,000 
341,000 
4,900,000 
 
Earnings Per Share - Shares Repurchased (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Schedule Of Shares Repurchased [Line Items]
 
 
 
Total Number of Shares Repurchased
860 
630 
341 
Total Cost of Shares Repurchased
$ 20,879 
$ 12,581 
$ 5,479 
Minimum [Member]
 
 
 
Schedule Of Shares Repurchased [Line Items]
 
 
 
Range of Prices Paid Per Share
$ 22.81 
$ 19.80 
$ 15.61 
Maximum [Member]
 
 
 
Schedule Of Shares Repurchased [Line Items]
 
 
 
Range of Prices Paid Per Share
$ 25.00 
$ 20.00 
$ 16.99 
Commitments and Loss Contingency - Rental Expense under Operating Leases (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
 
 
 
Rental expense
$ 47,208 
$ 44,916 
$ 47,365 
Commitments and Loss Contingency - Schedule of Future Minimum Rental Payments under Operating Leases (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
 
2016
$ 38,318 
2017
33,923 
2018
27,641 
2019
22,480 
2020
16,423 
2021 and thereafter
30,973 
Total minimum payments required
$ 169,758 
Commitments and Loss Contingency - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Qelp [Member]
 
Long-term Purchase Commitment [Line Items]
 
Expected future value of contingent consideration
$ 9.1 
Contingent consideration expected payment period
3 years 
Minimum [Member]
 
Long-term Purchase Commitment [Line Items]
 
Term of agreements with third party vendors
1 year 
Maximum [Member]
 
Long-term Purchase Commitment [Line Items]
 
Term of agreements with third party vendors
5 years 
Commitments and Loss Contingency - Schedule of Future Minimum Purchases Remaining under Agreements (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
 
2016
$ 41,806 
2017
15,975 
2018
1,718 
2019
1,477 
2020
857 
2021 and thereafter
470 
Total minimum payments required
$ 62,303 
Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
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, 2015
Dec. 31, 2014
Dec. 31, 2013
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
Beginning benefit obligation
$ 3,100 
$ 2,481 
 
Service cost
433 
387 
392 
Interest cost
135 
104 
137 
Actuarial (gains) losses
(121)
50 
 
Effect of foreign currency translation
(138)
78 
 
Ending benefit obligation
3,409 
3,100 
2,481 
Unfunded status
(3,409)
(3,100)
 
Net amount recognized
$ (3,409)
$ (3,100)
 
Defined Benefit Pension Plan and Postretirement Benefits - Benefit Obligations and Net Periodic Benefit Cost for Pension Plans (Detail)
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Rate of compensation increase
2.00% 
2.00% 
2.00% 
Minimum [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
5.00% 
4.50% 
4.30% 
Maximum [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate
5.40% 
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, 2015
Dec. 31, 2014
Dec. 31, 2013
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
Service cost
$ 433 
$ 387 
$ 392 
Interest cost
135 
104 
137 
Recognized actuarial (gains)
(41)
(50)
(60)
Net periodic benefit cost
527 
441 
469 
Unrealized net actuarial (gains), net of tax
(1,029)
(1,008)
(1,150)
Total amount recognized in net periodic benefit cost and other accumulated comprehensive income (loss)
$ (502)
$ (567)
$ (681)
Defined Benefit Pension Plan and Postretirement Benefits - Estimated Future Benefit Payments for Expected Future Service (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
 
2016
$ 143 
2017
69 
2018
45 
2019
253 
2020
157 
2021 - 2025
$ 964 
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, 2015
Dec. 31, 2014
Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]
 
 
 
401(k) plan contributions
$ 832 
$ 870 
$ 895 
Defined Benefit Pension Plan and Postretirement Benefits - Post-Retirement Benefit Obligation and Unrealized Gain (Losses) (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Postretirement benefit obligation
$ 3,409 
$ 3,100 
$ 2,481 
Split-Dollar Life Insurance Arrangement [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Postretirement benefit obligation
37 
46 
 
Unrealized gains (losses) in AOCI
$ 267 
$ 342 
 
Stock-Based Compensation - Additional Information (Detail) (USD $)
12 Months Ended 36 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
2011 Equity Incentive Plan [Member]
Dec. 31, 2015
2011 Equity Incentive Plan [Member]
Stock Appreciation Rights (SARs) [Member]
Dec. 31, 2015
2011 Equity Incentive Plan [Member]
Restricted Shares and Restricted Stock Units (RSU's) [Member]
Dec. 31, 2015
2011 Equity Incentive Plan [Member]
Restricted Shares and Restricted Stock Units (RSU's) [Member]
Minimum [Member]
Dec. 31, 2015
2011 Equity Incentive Plan [Member]
Restricted Shares and Restricted Stock Units (RSU's) [Member]
Maximum [Member]
Dec. 31, 2015
Non-Employee Director Fee Plan [Member]
Common Stock Awards [Member]
May 16, 2012
Non-Employee Director Fee Plan [Member]
Common Stock Awards [Member]
May 18, 2015
Non-Employee Director Fee Plan [Member]
Common Stock Awards [Member]
Dec. 31, 2015
Deferred Compensation Plan [Member]
Common Stock Awards [Member]
Dec. 31, 2015
Deferred Compensation Plan [Member]
Common Stock Awards [Member]
Treasury Stock [Member]
Dec. 31, 2014
Deferred Compensation Plan [Member]
Common Stock Awards [Member]
Treasury Stock [Member]
Dec. 31, 2015
Deferred Compensation Plan [Member]
Common Stock Awards [Member]
President, Chief Executive Officer and Executive Vice Presidents [Member]
Maximum [Member]
Dec. 31, 2015
Deferred Compensation Plan [Member]
Common Stock Awards [Member]
Senior Vice President, Global Vice Presidents and Vice Presidents [Member]
Maximum [Member]
Dec. 31, 2015
Deferred Compensation Plan [Member]
Accrued employee compensation and benefits
Dec. 31, 2014
Deferred Compensation Plan [Member]
Accrued employee compensation and benefits
Dec. 31, 2015
2001 Equity Incentive Plan [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
 
 
 
4,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plan expiration date
 
 
 
 
 
 
 
 
May 31, 2014 
 
 
 
 
 
 
 
 
 
Mar. 14, 2011 
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period
 
 
 
 
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
 
 
 
 
1 year 3 months 18 days 
1 year 8 months 12 days 
 
 
3 months 18 days 
 
 
2 years 
 
 
 
 
 
 
 
Total unrecognized compensation cost
 
 
 
 
2,000,000 
14,600,000 
 
 
200,000 
 
 
100,000 
 
 
 
 
 
 
 
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 Non-Employee Director
 
 
 
 
 
 
 
 
 
95,000 
125,000 
 
 
 
 
 
 
 
 
Annual Retainer payable in cash to Non Employee Director
 
 
 
 
 
 
 
 
55,000 
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
 
 
 
 
 
 
 
 
25,000 
 
30,000 
 
 
 
 
 
 
 
 
Vesting period for the annual equity award
 
 
 
 
 
 
 
 
 
2 years 
1 year 
 
 
 
 
 
 
 
 
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 
 
 
 
 
 
 
 
 
 
 
Annual Retainer payable in stock to Non Employee Director
 
 
 
 
 
 
 
 
100,000 
 
 
 
 
 
 
 
 
 
 
Increased cash component of annual retainer
 
 
 
 
 
 
 
 
5,000 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,900,000 
7,000,000 
 
Common stock match associated with the deferred compensation plan carrying value
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,600,000 
$ 1,500,000 
 
 
 
 
 
Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value (Detail) (Stock Appreciation Rights (SARs) [Member], 2011 Equity Incentive Plan [Member])
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Stock Appreciation Rights (SARs) [Member] |
2011 Equity Incentive Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected volatility
34.10% 
38.90% 
45.20% 
Weighted-average volatility
34.10% 
38.90% 
45.20% 
Expected dividend rate
0.00% 
0.00% 
0.00% 
Expected term (in years)
5 years 
5 years 
5 years 
Risk-free rate
1.60% 
1.70% 
0.80% 
Stock-Based Compensation - Summary of Stock Appreciation Rights Activity (Detail) (Stock Appreciation Rights (SARs) [Member], 2011 Equity Incentive Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Stock Appreciation Rights (SARs) [Member] |
2011 Equity Incentive Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Outstanding Shares, beginning balance
959 
 
 
Granted, Shares
217 
246 
318 
Exercised, Shares
(695)
 
 
Forfeited or expired, Shares
 
 
Outstanding Shares, ending balance
481 
959 
 
Vested or expected to vest, Shares
481 
 
 
Exercisable, Shares
57 
 
 
Outstanding, Weighted Average Exercise Price, beginning balance
$ 0 
 
 
Granted, Weighted Average Exercise Price
$ 0 
 
 
Exercised, Weighted Average Exercise Price
$ 0 
 
 
Forfeited or expired, Weighted Average Exercise Price
$ 0 
 
 
Outstanding, Weighted Average Exercise Price, ending balance
$ 0 
$ 0 
 
Vested or expected to vest, Weighted Average Exercise Price
$ 0 
 
 
Exercisable, Weighted Average Exercise Price
$ 0 
 
 
Outstanding, Weighted Average Remaining Contractual Term
8 years 1 month 6 days 
 
 
Vested or expected to vest, Weighted Average Remaining Contractual Term
8 years 1 month 6 days 
 
 
Exercisable, Weighted Average Remaining Contractual Term
4 years 8 months 12 days 
 
 
Outstanding, Aggregate Intrinsic Value
$ 4,366 
 
 
Vested or expected to vest, Aggregate Intrinsic Value
4,366 
 
 
Exercisable, Aggregate Intrinsic Value
$ 508 
 
 
Stock-Based Compensation - Weighted Average Grant Date of SARs Granted and Total Intrinsic Value of SARs Exercised (Detail) (Stock Appreciation Rights (SARs) [Member], 2011 Equity Incentive Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Stock Appreciation Rights (SARs) [Member] |
2011 Equity Incentive Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Granted, Shares
217 
246 
318 
Weighted average grant-date fair value per SAR
$ 8.17 
$ 7.20 
$ 6.08 
Intrinsic value of SARs exercised
$ 5,957 
$ 391 
$ 488 
Fair value of vested
$ 1,302 
$ 1,553 
$ 1,298 
Stock-Based Compensation - Summary of Nonvested Stock Appreciation Rights (Detail) (Stock Appreciation Rights (SARs) [Member], 2011 Equity Incentive Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Stock Appreciation Rights (SARs) [Member] |
2011 Equity Incentive Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Nonvested Shares, beginning balance
411 
 
 
Granted, Shares
217 
246 
318 
Vested, Shares
(204)
 
 
Forfeited, Shares
 
 
Nonvested Shares, ending balance
424 
411 
 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 6.61 
 
 
Granted, Weighted Average Grant-Date Fair Value
$ 8.17 
$ 7.20 
$ 6.08 
Vested, Weighted Average Grant-Date Fair Value
$ 6.41 
 
 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 0 
 
 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 7.50 
$ 6.61 
 
Stock-Based Compensation - Summary of Nonvested Restricted Shares and Restricted Stock Units (Detail) (Restricted Shares and Restricted Stock Units (RSU's) [Member], 2011 Equity Incentive Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Restricted Shares and Restricted Stock Units (RSU's) [Member] |
2011 Equity Incentive Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Nonvested Shares, beginning balance
1,194 
 
 
Granted, Shares
441 
500 
706 
Vested, Shares
(125)
 
 
Forfeited, Shares
(264)
 
 
Nonvested Shares, ending balance
1,246 
1,194 
 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 16.80 
 
 
Granted, Weighted Average Grant-Date Fair Value
$ 25.06 
$ 19.77 
$ 15.25 
Vested, Weighted Average Grant-Date Fair Value
$ 16.10 
 
 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 15.71 
 
 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 20.03 
$ 16.80 
 
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value Granted and Total Fair Value of Restricted Shares and Restricted Stock Units Vested (Detail) (Restricted Shares and Restricted Stock Units (RSU's) [Member], 2011 Equity Incentive Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Restricted Shares and Restricted Stock Units (RSU's) [Member] |
2011 Equity Incentive Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Granted, Shares
441 
500 
706 
Weighted average grant-date fair value
$ 25.06 
$ 19.77 
$ 15.25 
Fair value of vested
$ 2,019 
$ 895 
$ 366 
Stock-Based Compensation - Summary of Nonvested Common Stock Units and Share Awards (Detail) (Common Stock Awards [Member], Non-Employee Director Fee Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Common Stock Awards [Member] |
Non-Employee Director Fee Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Nonvested Shares, beginning balance
12 
 
 
Granted, Shares
32 
36 
37 
Vested, Shares
(33)
 
 
Forfeited, Shares
 
 
Nonvested Shares, ending balance
11 
12 
 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 20.24 
 
 
Granted, Weighted Average Grant-Date Fair Value
$ 24.70 
$ 20.15 
$ 16.01 
Vested, Weighted Average Grant-Date Fair Value
$ 23.43 
 
 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 0 
 
 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 23.74 
$ 20.24 
 
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Total Fair Value of Common Stock Units and Share Awards Vested (Detail) (Common Stock Awards [Member], Non-Employee Director Fee Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Common Stock Awards [Member] |
Non-Employee Director Fee Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Granted, Shares
32 
36 
37 
Weighted average grant-date fair value
$ 24.70 
$ 20.15 
$ 16.01 
Fair value of vested
$ 790 
$ 630 
$ 669 
Stock-Based Compensation - Summary of Nonvested Common Stock (Detail) (Common Stock Awards [Member], Deferred Compensation Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Common Stock Awards [Member] |
Deferred Compensation Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Nonvested Shares, beginning balance
 
 
Granted, Shares
10 
13 
Vested, Shares
(10)
 
 
Forfeited, Shares
 
 
Nonvested Shares, ending balance
 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 17.88 
 
 
Granted, Weighted Average Grant-Date Fair Value
$ 25.06 
$ 20.54 
$ 16.76 
Vested, Weighted Average Grant-Date Fair Value
$ 23.12 
 
 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 0 
 
 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 19.53 
$ 17.88 
 
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Awarded and Cash Used to Settle Company's Obligation under Deferred Compensation (Detail) (Common Stock Awards [Member], Deferred Compensation Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Common Stock Awards [Member] |
Deferred Compensation Plan [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Granted, Shares
10 
13 
Weighted average grant-date fair value
$ 25.06 
$ 20.54 
$ 16.76 
Fair value of vested
$ 244 
$ 212 
$ 257 
Cash used to settle the obligation
$ 65 
$ 1,493 
$ 1,014 
Segments and Geographic Information - Additional Information (Detail)
12 Months Ended
Dec. 31, 2015
Segment
Region
Dec. 31, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
 
Number of operating regions
 
 
Number of reportable segments
 
 
Percentage of consolidated revenue of top ten clients
48.50% 
46.80% 
45.90% 
Minimum [Member] |
AT&T Corporation [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Contract expiration date
Jan. 01, 2016 
 
 
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, 2015
Dec. 31, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
 
Revenues
$ 1,286,340 
$ 1,327,523 
$ 1,263,460 
Percentage of revenues
100.00% 
100.00% 
100.00% 
Depreciation, net
43,752 
45,363 
42,084 
Amortization of intangibles
14,170 
14,396 
14,863 
Income (loss) from operations
94,264 
79,555 
53,527 
Other (expense), net
(4,281)
(2,396)
(2,202)
Income taxes
(21,386)
(19,368)
(14,065)
Net income
68,597 
57,791 
37,260 
Total assets
947,772 
944,500 
950,261 
Operating Segments [Member] |
Americas [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
1,045,415 
1,070,824 
1,050,813 
Percentage of revenues
81.30% 
80.70% 
83.20% 
Depreciation, net
37,842 
40,557 
37,818 
Amortization of intangibles
13,648 
14,396 
14,863 
Income (loss) from operations
135,443 
113,549 
94,006 
Total assets
1,058,467 
1,080,010 
1,097,788 
Operating Segments [Member] |
EMEA [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
240,826 
256,699 
212,647 
Percentage of revenues
18.70% 
19.30% 
16.80% 
Depreciation, net
4,559 
4,806 
4,266 
Amortization of intangibles
522 
 
 
Income (loss) from operations
15,336 
16,208 
6,052 
Total assets
1,419,578 
1,373,590 
1,409,185 
Other Items [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
99 
 
 
Percentage of revenues
0.00% 
0.00% 
0.00% 
Depreciation, net
1,351 
 
 
Income (loss) from operations
(56,515)
(50,202)
(46,531)
Other (expense), net
(4,281)
(2,396)
(2,202)
Income taxes
(21,386)
(19,368)
(14,065)
Total assets
$ (1,530,273)
$ (1,509,100)
$ (1,556,712)
Segments and Geographic Information - Revenues by Segment from Major Customers (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenue, Major Customer [Line Items]
 
 
 
Amount
$ 1,286,340 
$ 1,327,523 
$ 1,263,460 
AT&T Corporation [Member] |
Customer Concentration Risk [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
Amount
220,452 
216,126 
166,401 
AT&T Corporation [Member] |
Customer Concentration Risk [Member] |
Americas [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
Amount
217,449 
212,607 
162,888 
AT&T Corporation [Member] |
Customer Concentration Risk [Member] |
EMEA [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
Amount
$ 3,003 
$ 3,519 
$ 3,513 
AT&T Corporation [Member] |
Customer Concentration Risk [Member] |
Sales Revenue, Net [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
% of Revenues
17.10% 
16.30% 
13.20% 
AT&T Corporation [Member] |
Customer Concentration Risk [Member] |
Sales Revenue, Net [Member] |
Americas [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
% of Revenues
20.80% 
19.90% 
15.50% 
AT&T Corporation [Member] |
Customer Concentration Risk [Member] |
Sales Revenue, Net [Member] |
EMEA [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
% of Revenues
1.20% 
1.40% 
1.70% 
Segments and Geographic Information - Revenues by Segment from Major Customers Other than AT&T Corporation (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Revenue, Major Customer [Line Items]
 
 
 
Amount
$ 1,286,340 
$ 1,327,523 
$ 1,263,460 
Greater Than Ten Percent of Segment Revenue Other Than AT&T Corporation [Member] |
Customer Concentration Risk [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
Amount
68,720 
79,811 
55,123 
EMEA [Member] |
Greater Than Ten Percent of Segment Revenue Other Than AT&T Corporation [Member] |
Customer Concentration Risk [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
Amount
$ 68,720 
$ 79,811 
$ 55,123 
Sales Revenue, Net [Member] |
Greater Than Ten Percent of Segment Revenue Other Than AT&T Corporation [Member] |
Customer Concentration Risk [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
% of Revenues
5.30% 
6.00% 
4.40% 
Sales Revenue, Net [Member] |
Americas [Member] |
Greater Than Ten Percent of Segment Revenue Other Than AT&T Corporation [Member] |
Customer Concentration Risk [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
% of Revenues
0.00% 
0.00% 
0.00% 
Sales Revenue, Net [Member] |
EMEA [Member] |
Greater Than Ten Percent of Segment Revenue Other Than AT&T Corporation [Member] |
Customer Concentration Risk [Member]
 
 
 
Revenue, Major Customer [Line Items]
 
 
 
% of Revenues
28.50% 
31.10% 
25.90% 
Segments and Geographic Information - Operations by Geographic Location (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
 
Revenues
$ 1,286,340 
$ 1,327,523 
$ 1,263,460 
Long-Lived assets
162,858 
170,500 
 
Goodwill
195,733 
193,831 
199,802 
Other Items [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
99 
 
 
Long-Lived assets
10,758 
 
 
Americas [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Goodwill
186,049 
193,831 
199,802 
Americas [Member] |
Operating Segments [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
1,045,415 
1,070,824 
1,050,813 
Long-Lived assets
135,647 
159,362 
 
Americas [Member] |
Operating Segments [Member] |
United States [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
422,584 
425,746 
388,775 
Long-Lived assets
93,941 
108,030 
 
Americas [Member] |
Operating Segments [Member] |
The Philippines [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
216,170 
205,332 
213,132 
Long-Lived assets
10,844 
14,656 
 
Americas [Member] |
Operating Segments [Member] |
Canada [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
133,549 
195,739 
210,463 
Long-Lived assets
10,278 
16,257 
 
Americas [Member] |
Operating Segments [Member] |
Costa Rica [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
114,483 
97,295 
101,888 
Long-Lived assets
7,382 
5,625 
 
Americas [Member] |
Operating Segments [Member] |
El Salvador [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
63,462 
52,609 
46,301 
Long-Lived assets
3,329 
3,298 
 
Americas [Member] |
Operating Segments [Member] |
China [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
36,270 
32,167 
25,478 
Long-Lived assets
3,523 
4,417 
 
Americas [Member] |
Operating Segments [Member] |
Australia [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
23,960 
33,126 
36,725 
Long-Lived assets
2,396 
2,923 
 
Americas [Member] |
Operating Segments [Member] |
Mexico [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
18,338 
20,439 
23,701 
Long-Lived assets
1,307 
1,575 
 
Americas [Member] |
Operating Segments [Member] |
Colombia [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
7,381 
3,073 
 
Long-Lived assets
1,299 
1,514 
 
Americas [Member] |
Operating Segments [Member] |
Brazil [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
5,442 
3,005 
3,288 
Long-Lived assets
1,047 
844 
 
Americas [Member] |
Operating Segments [Member] |
India [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
3,776 
2,293 
1,062 
Long-Lived assets
301 
223 
 
EMEA [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Goodwill
9,684 
 
 
EMEA [Member] |
Operating Segments [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
240,826 
256,699 
212,647 
Long-Lived assets
16,453 
11,138 
 
EMEA [Member] |
Operating Segments [Member] |
Germany [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
82,120 
88,887 
77,950 
Long-Lived assets
1,973 
2,310 
 
EMEA [Member] |
Operating Segments [Member] |
Sweden [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
56,600 
68,057 
49,953 
Long-Lived assets
1,681 
2,478 
 
EMEA [Member] |
Operating Segments [Member] |
United Kingdom [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
50,209 
42,328 
33,750 
Long-Lived assets
3,652 
3,871 
 
EMEA [Member] |
Operating Segments [Member] |
Romania [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
15,474 
18,288 
14,856 
Long-Lived assets
678 
682 
 
EMEA [Member] |
Operating Segments [Member] |
Hungary [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
9,164 
8,723 
8,525 
Long-Lived assets
536 
442 
 
EMEA [Member] |
Operating Segments [Member] |
Norway [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
8,382 
10,265 
6,768 
Long-Lived assets
278 
490 
 
EMEA [Member] |
Operating Segments [Member] |
Finland [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
4,643 
4,295 
4,936 
Long-Lived assets
226 
92 
 
EMEA [Member] |
Operating Segments [Member] |
Denmark [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
3,898 
4,578 
4,739 
Long-Lived assets
81 
95 
 
EMEA [Member] |
Operating Segments [Member] |
Netherlands [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
3,783 
3,126 
3,073 
Long-Lived assets
7,243 
 
EMEA [Member] |
Operating Segments [Member] |
Egypt [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
3,552 
4,633 
4,810 
Long-Lived assets
105 
172 
 
EMEA [Member] |
Operating Segments [Member] |
Slovakia [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
3,001 
3,519 
3,287 
Long-Lived assets
 
$ 497 
 
Segments and Geographic Information - Revenues for the Company's Products and Services (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]
 
 
 
Revenues
$ 1,286,340 
$ 1,327,523 
$ 1,263,460 
Outsourced Customer Contract Management Services [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
1,261,465 
1,303,607 
1,240,328 
Fulfillment Services [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
21,434 
18,392 
16,953 
Enterprise Support Services [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenues
$ 3,441 
$ 5,524 
$ 6,179 
Other Income (Expense) - Schedule of Other Income (Expense) (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Other Income (Expense) [Abstract]
 
 
 
Foreign currency transaction gains (losses)
$ (2,924)
$ (1,740)
$ (5,962)
Gains (losses) on foreign currency derivative instruments not designated as hedges
1,374 
(44)
4,216 
Gains (losses) on liquidation of foreign subsidiaries
(647)
 
 
Other miscellaneous income (expense)
(287)
441 
985 
Other income (expense)
$ (2,484)
$ (1,343)
$ (761)
Related Party Transactions - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Jan. 31, 2008
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
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, 2015
Dec. 31, 2014
Dec. 31, 2013
Allowance for Doubtful Accounts [Member]
 
 
 
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
Balance at Beginning of Period
$ 4,661 
$ 4,987 
$ 5,081 
Charged (Credited) to Costs and Expenses
278 
(181)
483 
Additions (Deductions)
(1,365)
(145)
(577)
Balance at End of Period
3,574 
4,661 
4,987 
Valuation Allowance for Net Deferred Tax Assets [Member]
 
 
 
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
Balance at Beginning of Period
34,146 
42,664 
43,298 
Charged (Credited) to Costs and Expenses
(4,081)
(8,518)
(634)
Balance at End of Period
30,065 
34,146 
42,664 
Reserves for Value Added Tax Receivables [Member]
 
 
 
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
Balance at Beginning of Period
275 
2,530 
3,076 
Charged (Credited) to Costs and Expenses
 
(638)
143 
Additions (Deductions)
(1,617)
(689)
Balance at End of Period
$ 283 
$ 275 
$ 2,530