Document and Entity Information

6 Months Ended

Jun. 30, 2014

Jul. 30, 2014

Document And Entity Information [Abstract]

Document Type

10-Q

Amendment Flag

false

Document Period End Date

Jun. 30, 2014

Document Fiscal Year Focus

2014

Document Fiscal Period Focus

Q2

Entity Registrant Name

SYKES ENTERPRISES INC

Entity Central Index Key

0001010612

Current Fiscal Year End Date

--12-31

Entity Filer Category

Large Accelerated Filer

Entity Common Stock, Shares Outstanding

43,786,852

Condensed Consolidated Balance Sheets (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

Current assets:

Cash and cash equivalents

$ 204,498

$ 211,985

Receivables, net

283,547

264,916

Prepaid expenses

18,540

15,710

Other current assets

24,213

20,672

Total current assets

530,798

513,283

Property and equipment, net

115,374

117,549

Goodwill, net

198,518

199,802

Intangibles, net

68,707

76,055

Deferred charges and other assets

32,552

43,572

Total assets

945,949

950,261

Current liabilities:

Accounts payable

24,354

25,540

Accrued employee compensation and benefits

83,408

81,064

Current deferred income tax liabilities

194

84

Income taxes payable

2,982

1,274

Deferred revenue

35,796

35,025

Other accrued expenses and current liabilities

29,450

30,393

Total current liabilities

176,184

173,380

Deferred grants

5,867

6,637

Long-term debt

79,000

98,000

Long-term income tax liabilities

20,919

24,647

Other long-term liabilities

11,639

11,893

Total liabilities

293,609

314,557

Commitments and loss contingency (Note 13)

Shareholders' equity:

Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued and outstanding

0

Common stock, $0.01 par value, 200,000 shares authorized; 43,802 and 43,997 shares issued, respectively

438

440

Additional paid-in capital

279,649

279,513

Retained earnings

366,674

349,366

Accumulated other comprehensive income (loss)

7,349

7,997

Treasury stock at cost: 130 and 122 shares, respectively

(1,770)

(1,612)

Total shareholders' equity

652,340

635,704

Total liabilities and shareholders' equity

$ 945,949

$ 950,261

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)

In Thousands, except Per Share data, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

Statement Of Financial Position [Abstract]

Preferred stock, par value

$ 0.01

Preferred stock, shares authorized

10,000

Preferred stock, shares issued

0

Preferred stock, shares outstanding

0

Common stock, par value

$ 0.01

Common stock, shares authorized

200,000

Common stock, shares issued

43,802

43,997

Treasury stock, shares

130

122

Condensed Consolidated Statements of Operations (USD $)

In Thousands, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Income Statement [Abstract]

Revenues

$ 320,498

$ 304,735

$ 644,927

$ 605,979

Operating expenses:

Direct salaries and related costs

221,085

210,141

442,710

413,847

General and administrative

74,005

75,247

147,382

148,980

Depreciation, net

11,322

10,017

22,620

20,186

Amortization of intangibles

3,659

3,713

7,310

7,472

Total operating expenses

310,071

299,118

620,022

590,485

Income from operations

10,427

5,617

24,905

15,494

Other income (expense):

Interest income

237

208

468

432

Interest (expense)

(552)

(578)

(1,051)

(1,086)

Other income (expense)

(399)

(339)

264

(214)

Total other income (expense)

(714)

(709)

(319)

(868)

Income before income taxes

9,713

4,908

24,586

14,626

Income taxes

1,376

(688)

5,936

2,512

Net income

$ 8,337

$ 5,596

$ 18,650

$ 12,114

Net income per common share:

Basic

$ 0.20

$ 0.13

$ 0.44

$ 0.28

Diluted

$ 0.19

$ 0.13

$ 0.44

$ 0.28

Weighted average common shares outstanding:

Basic

42,711

42,936

42,726

42,992

Diluted

42,810

42,954

42,845

43,011

Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Statement Of Income And Comprehensive Income [Abstract]

Net income

$ 8,337

$ 5,596

$ 18,650

$ 12,114

Other comprehensive income (loss), net of taxes:

Foreign currency translation gain (loss), net of taxes

3,480

(4,377)

(2,079)

(10,105)

Unrealized gain (loss) on net investment hedge, net of taxes

70

(259)

105

23

Unrealized actuarial gain (loss) related to pension liability, net of taxes

42

(88)

21

(96)

Unrealized gain (loss) on cash flow hedging instruments, net of taxes

4,029

(4,197)

1,287

(2,178)

Unrealized gain (loss) on postretirement obligation, net of taxes

12

(46)

18

(89)

Other comprehensive income (loss), net of taxes

7,633

(8,967)

(648)

(12,445)

Comprehensive income (loss)

$ 15,970

$ (3,371)

$ 18,002

$ (331)

Condensed 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, 2013

$ 635,704

$ 440

$ 279,513

$ 349,366

$ 7,997

$ (1,612)

Beginning Balance, shares at Dec. 31, 2013

43,997

Stock-based compensation expense

1,691

Excess tax benefit (deficiency) from stock-based compensation

(30)

Net vesting (forfeitures) of common stock and restricted stock under equity award plans

(422)

(1)

(263)

(158)

Net vesting (forfeitures) of common stock and restricted stock under equity award plans, shares

(65)

Repurchase of common stock

(2,605)

Retirement of treasury stock

(1)

(1,262)

(1,342)

2,605

Retirement of treasury stock, shares

(130)

Comprehensive income (loss)

18,002

18,650

(648)

Ending Balance at Jun. 30, 2014

$ 652,340

$ 438

$ 279,649

$ 366,674

$ 7,349

$ (1,770)

Ending Balance, shares at Jun. 30, 2014

43,802

Condensed Consolidated Statements of Cash Flows (USD $)

In Thousands, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Cash flows from operating activities:

Net income

$ 18,650

$ 12,114

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

Depreciation

23,090

20,759

Amortization of intangibles

7,310

7,472

Amortization of deferred grants

(829)

(573)

Unrealized foreign currency transaction (gains) losses, net

(449)

3,400

Stock-based compensation expense

1,691

2,190

Deferred income tax provision (benefit)

2,619

(2,702)

Net (gain) loss on disposal of property and equipment

59

(17)

Bad debt expense (reversals)

(389)

276

Unrealized (gains) losses on financial instruments, net

2,503

785

Amortization of deferred loan fees

130

Other

(360)

46

Changes in assets and liabilities:

Receivables

(13,322)

(37,780)

Prepaid expenses

(2,754)

(8,703)

Other current assets

(5,542)

(1,712)

Deferred charges and other assets

7,852

541

Accounts payable

2,481

(3,830)

Income taxes receivable / payable

(3,536)

(2,251)

Accrued employee compensation and benefits

2,789

82

Other accrued expenses and current liabilities

(176)

1,630

Deferred revenue

780

2,632

Other long-term liabilities

(3,255)

(142)

Net cash provided by (used for) operating activities

39,342

(5,653)

Cash flows from investing activities:

Capital expenditures

(24,236)

(26,061)

Proceeds from sale of property and equipment

81

93

Investment in restricted cash

(3)

(11)

Release of restricted cash

168

Net cash (used for) investing activities

(23,990)

(25,979)

Cash flows from financing activities:

Payments of long-term debt

(19,000)

(10,000)

Proceeds from issuance of long-term debt

32,000

Proceeds from issuance of common stock

59

Cash paid for repurchase of common stock

(2,605)

(4,294)

Proceeds from grants

107

104

Shares repurchased for minimum tax withholding on equity awards

(422)

(93)

Net cash provided by (used for) financing activities

(21,920)

17,776

Effects of exchange rates on cash and cash equivalents

(919)

(6,054)

Net increase (decrease) in cash and cash equivalents

(7,487)

(19,910)

Cash and cash equivalents - beginning

211,985

187,322

Cash and cash equivalents - ending

204,498

167,412

Supplemental disclosures of cash flow information:

Cash paid during period for interest

904

1,030

Cash paid during period for income taxes

9,341

8,481

Non-cash transactions:

Property and equipment additions in accounts payable

2,804

4,519

Unrealized gain (loss) on postretirement obligation in accumulated other comprehensive income (loss)

$ 18

$ (89)

Overview and Basis of Presentation

Note 1. Overview and Basis of Presentation

Business — Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) provides comprehensive outsourced customer contact management solutions and services in the business process outsourcing arena to companies, primarily within the communications, financial services, technology/consumer, transportation and leisure, and healthcare industries. SYKES provides flexible, high-quality outsourced customer contact management services (with an emphasis on inbound technical support and customer service), which includes customer assistance, healthcare and roadside assistance, technical support and product sales to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels encompassing phone, e-mail, social media, text messaging and chat. SYKES complements its outsourced customer contact management services with various enterprise support services in the United States that encompass services for a company’s internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services including multilingual sales order processing via the Internet and phone, 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.

Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2014. For further information, refer to the consolidated financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission (“SEC”) on February 20, 2014.

Principles of Consolidation — The condensed 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 condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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

New Accounting Standards Not Yet Adopted

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

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

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

New Accounting Standards Recently Adopted

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

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

Costs Associated with Exit or Disposal Activities

Note 2. Costs Associated with Exit or Disposal Activities

Fourth Quarter 2011 Exit Plan

During 2011, the Company announced a plan to rationalize seats in certain U.S. sites and close certain locations in EMEA (the “Fourth Quarter 2011 Exit Plan”). The details are described below, by segment.

Americas

During 2011, as part of an on-going effort to streamline excess capacity related to the integration of the ICT Group, Inc. (“ICT”) acquisition and align it with the needs of the market, the Company announced a plan to rationalize approximately 900 seats in the U.S., some of which were revenue generating, and migrated the associated revenues to other locations within the U.S. Approximately 300 employees were affected and the Company has completed the actions associated with the Fourth Quarter 2011 Exit Plan in the Americas.

The major costs incurred as a result of these actions are program transfer costs, facility-related costs (primarily consisting of those costs associated with the real estate leases), and impairments of long-lived assets (primarily leasehold improvements and equipment) estimated at $1.9 million as of June 30, 2014 ($1.9 million at December 31, 2013). The Company recorded $0.5 million of the costs associated with these actions as non-cash impairment charges, while approximately $1.4 million represents cash expenditures for program transfer and facility-related costs, including obligations under the leases, the last of which ends in February 2017. The Company has paid $0.9 million in cash through June 30, 2014 under the Fourth Quarter 2011 Exit Plan in the Americas.

The following tables summarize the accrued liability associated with the Americas Fourth Quarter 2011 Exit Plan’s exit or disposal activities and related charges for the three months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at April 1, 2014		Charges (Reversals) for the Three Months Ended June 30, 2014		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	469	$	-	$	(41	)	$	-	$	428


	Beginning Accrual at April 1, 2013		Charges (Reversals) for the Three Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	647	$	-	$	(41	)	$	-	$	606

The following tables summarize the accrued liability associated with the Americas Fourth Quarter 2011 Exit Plan’s exit or disposal activities and related charges for the six months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at January 1, 2014		Charges (Reversals) for the Six Months Ended June 30, 2014		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	512	$	-	$	(84	)	$	-	$	428


	Beginning Accrual at January 1, 2013		Charges (Reversals) for the Six Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	682	$	-	$	(76	)	$	-	$	606

EMEA

During 2011, to improve the Company’s overall profitability and improve its cost structure in the EMEA region by optimizing its capacity utilization, the Company committed to close a customer contact management center in South Africa and a customer contact management center in Ireland, as well as some capacity rationalization in the Netherlands, all components of the EMEA segment. While the Company migrated approximately $3.2 million of annualized call volumes of the Ireland facility to other facilities within EMEA, the Company did not migrate the remaining call volume in Ireland or any of the annualized revenue from the Netherlands or South Africa facilities, which was $18.8 million for 2011, to other facilities within the region. The number of seats rationalized across the EMEA region approximated 900 with approximately 500 employees affected by the actions. The Company closed these facilities and substantially completed the actions associated with the EMEA plan on September 30, 2012.

The major costs incurred as a result of these actions are facility-related costs (primarily consisting of those costs associated with the real estate leases), impairments of long-lived assets (primarily leasehold improvements and equipment) and severance-related costs estimated at $6.7 million as of June 30, 2014 ($6.7 million as of December 31, 2013). The Company recorded $0.5 million of the costs associated with these actions as non-cash impairment charges, while approximately $6.2 million represents cash expenditures for severance and related costs and facility-related costs, primarily rent obligations to be paid through the remainder of the noncancelable term of the leases, the last of which ended in March 2013. The Company has paid $5.9 million in cash through June 30, 2014 under the Fourth Quarter 2011 Exit Plan in EMEA.

The following tables summarize the accrued liability associated with EMEA’s Fourth Quarter 2011 Exit Plan’s exit or disposal activities and related charges for the three months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at April 1, 2014		Charges (Reversals) for the Three Months Ended June 30, 2014		Cash Payments		Other Non-Cash Changes ⁽²⁾			Ending Accrual at June 30, 2014
Severance and related costs	$	132	$	-	$	-	$	(1	)	$	131
Legal-related costs		-		-		-		-			-

	$	132	$	-	$	-	$	(1	)	$	131


	Beginning Accrual at April 1, 2013		Charges (Reversals) for the Three Months Ended June 30, 2013 ⁽¹⁾		Cash Payments			Other Non-Cash Changes ⁽²⁾		Ending Accrual at June 30, 2013
Severance and related costs	$	182	$	-	$	-		$	2	$	184
Legal-related costs		5		3		(3	)		-		5

	$	187	$	3	$	(3	)	$	2	$	189

⁽¹⁾

During 2013, the Company recorded additional severance and related costs and legal-related costs, which are recorded in “General and administrative” costs in the accompanying Condensed Consolidated Statement of Operations.

⁽²⁾

Effect of foreign currency translation.

The following tables summarize the accrued liability associated with EMEA’s Fourth Quarter 2011 Exit Plan’s exit or disposal activities and related charges for the six months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at January 1, 2014		Charges (Reversals) for the Six Months Ended June 30, 2014		Cash Payments		Other Non-Cash Changes ⁽²⁾		Ending Accrual at June 30, 2014
Severance and related costs	$	131	$	-	$	-	$	-	$	131
Legal-related costs		-		-		-		-		-

	$	131	$	-	$	-	$	-	$	131


	Beginning Accrual at January 1, 2013		Charges (Reversals) for the Six Months Ended June 30, 2013 ⁽¹⁾		Cash Payments			Other Non-Cash Changes ⁽²⁾			Ending Accrual at June 30, 2013
Severance and related costs	$	187	$	6	$	(7	)	$	(2	)	$	184
Legal-related costs		10		4		(10	)		1			5

	$	197	$	10	$	(17	)	$	(1	)	$	189

⁽¹⁾

During 2013, the Company recorded additional severance and related costs and legal-related costs, which are recorded in “General and administrative” costs in the accompanying Condensed Consolidated Statement of Operations.

⁽²⁾

Effect of foreign currency translation.

Fourth Quarter 2010 Exit Plan

During 2010, in furtherance of the Company’s long-term goals to manage and optimize capacity utilization, the Company committed to and closed a customer contact management center in the United Kingdom and a customer contact management center in Ireland, both components of the EMEA segment (the “Fourth Quarter 2010 Exit Plan”). These actions were substantially completed by January 31, 2011.

The major costs incurred as a result of these actions were facility-related costs (primarily consisting of those costs associated with the real estate leases), impairments of long-lived assets (primarily leasehold improvements and equipment) and severance-related costs totaling $2.3 million as of June 30, 2014 ($2.5 million as of December 31, 2013). The Company recorded $0.2 million of the costs associated with these actions as non-cash impairment charges, while approximately $1.9 million represents cash expenditures for facility-related costs, primarily rent obligations to be paid through the remainder of the lease terms, the last of which ended in March 2014, and $0.2 million represents cash expenditures for severance-related costs. The Fourth Quarter 2010 Exit Plan was settled during the three months ended June 30, 2014. The Company paid $2.0 million in cash through June 30, 2014 under the Fourth Quarter 2010 Exit Plan.

The following tables summarize the accrued liability associated with the Fourth Quarter 2010 Exit Plan’s exit or disposal activities and related charges during the three months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at April 1, 2014		Charges (Reversals) for the Three Months Ended June 30, 2014 ⁽¹⁾			Cash Payments			Other Non-Cash Changes ⁽²⁾			Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	433	$	(185	)	$	(242	)	$	(6	)	$	-


	Beginning Accrual at April 1, 2013		Charges (Reversals) for the Three Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes ⁽²⁾		Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	449	$	-	$	(100	)	$	7	$	356

⁽¹⁾

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

⁽²⁾

Effect of foreign currency translation.

The following tables summarize the accrued liability associated with the Fourth Quarter 2010 Exit Plan’s exit or disposal activities and related charges during the six months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at January 1, 2014		Charges (Reversals) for the Six Months Ended June 30, 2014 ⁽¹⁾			Cash Payments			Other Non-Cash Changes ⁽²⁾			Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	538	$	(185	)	$	(348	)	$	(5	)	$	-


	Beginning Accrual at January 1, 2013		Charges (Reversals) for the Six Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes ⁽²⁾			Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	539	$	-	$	(180	)	$	(3	)	$	356

⁽¹⁾	During 2014, the Company reversed accruals related to the final settlement of lease obligations and facility exit costs related to the Ireland site, which reduced “General and administrative” costs in the accompanying Condensed Consolidated Statement of Operations.

⁽²⁾	Effect of foreign currency translation.

Third Quarter 2010 Exit Plan

During 2010, consistent with the Company’s long-term goals to manage and optimize capacity utilization, the Company closed or committed to close four customer contact management centers in The Philippines and consolidated or committed to consolidate leased space in our Wilmington, Delaware and Newtown, Pennsylvania locations (the “Third Quarter 2010 Exit Plan”). These actions were substantially completed by January 31, 2011.

The major costs incurred as a result of these actions were impairments of long-lived assets (primarily leasehold improvements) and facility-related costs (primarily consisting of those costs associated with the real estate leases) estimated at $10.5 million as of June 30, 2014 ($10.5 million as of December 31, 2013), all of which are in the Americas segment. The Company recorded $3.8 million of the costs associated with these actions as non-cash impairment charges, while approximately $6.7 million represents cash expenditures for facility-related costs, primarily rent obligations to be paid through the remainder of the lease terms, the last of which ends in February 2017. The Company has paid $5.2 million in cash through June 30, 2014 under the Third Quarter 2010 Exit Plan.

The following tables summarize the accrued liability associated with the Third Quarter 2010 Exit Plan’s exit or disposal activities and related charges for the three months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at April 1, 2014		Charges (Reversals) for the Three Months Ended June 30, 2014		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	1,697	$	-	$	(145	)	$	-	$	1,552


	Beginning Accrual at April 1, 2013		Charges (Reversals) for the Three Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	2,328	$	-	$	(163	)	$	-	$	2,165

The following tables summarize the accrued liability associated with the Third Quarter 2010 Exit Plan’s exit or disposal activities and related charges for the six months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at January 1, 2014		Charges (Reversals) for the Six Months Ended June 30, 2014		Cash Payments			Other Non-Cash Changes			Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	1,793	$	-	$	(241	)	$	-		$	1,552


	Beginning Accrual at January 1, 2013		Charges (Reversals) for the Six Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes ⁽¹⁾			Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	2,551	$	-	$	(385	)	$	(1	)	$	2,165

⁽¹⁾

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 June 30, 2014 and December 31, 2013 (in thousands):


	Americas Fourth Quarter 2011 Exit Plan		EMEA Fourth Quarter 2011 Exit Plan		Fourth Quarter 2010 Exit Plan		Third Quarter 2010 Exit Plan		Total
June 30, 2014
Short-term accrued restructuring liability ⁽¹⁾	$	138	$	131	$	-	$	507	$	776
Long-term accrued restructuring liability ⁽²⁾		290		-		-		1,045		1,335

Ending accrual at June 30, 2014	$	428	$	131	$	-	$	1,552	$	2,111

December 31, 2013
Short-term accrued restructuring liability ⁽¹⁾	$	136	$	131	$	538	$	440	$	1,245
Long-term accrued restructuring liability ⁽²⁾		376		-		-		1,353		1,729

Ending accrual at December 31, 2013	$	512	$	131	$	538	$	1,793	$	2,974

⁽¹⁾

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

⁽²⁾

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

Fair Value

Note 3. Fair Value

ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) 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.

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

—

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

—

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

—

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

Fair Value Measurements — ASC 820 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.

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

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

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

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

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

Investments Held in Rabbi Trust — The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 6, Investments Held in Rabbi Trust, and Note 15, 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.

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


		Fair Value Measurements at June 30, 2014 Using:
		Balance at		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
		June 30, 2014		Level (1)		Level (2)		Level (3)
Assets:
Money market funds and open-end mutual funds included in “Cash and cash equivalents”	⁽¹⁾	$	81,145	$	81,145	$	-	$	-
Money market funds and open-end mutual funds in “Deferred charges and other assets”	⁽¹⁾		11		11		-		-
Foreign currency forward and option contracts	⁽²⁾		1,562		-		1,562		-
Equity investments held in a rabbi trust for the Deferred Compensation Plan	⁽³⁾		6,015		6,015		-		-
Debt investments held in a rabbi trust for the Deferred Compensation Plan	⁽³⁾		1,390		1,390		-		-
Guaranteed investment certificates ⁽⁴⁾			79		-		79		-

		$	90,202	$	88,561	$	1,641	$	-

Liabilities:
Long-term debt	⁽⁵⁾	$	79,000	$	-	$	79,000	$	-
Foreign currency forward and option contracts	⁽⁶⁾		5,295		-		5,295		-

		$	84,295	$	-	$	84,295	$	-


		Fair Value Measurements at December 31, 2013 Using:
		Balance at		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
		December 31, 2013		Level (1)		Level (2)		Level (3)
Assets:
Money market funds and open-end mutual funds included in “Cash and cash equivalents”	⁽¹⁾	$	50,627	$	50,627	$	-	$	-
Money market funds and open-end mutual funds in “Deferred charges and other assets”	⁽¹⁾		11		11		-		-
Foreign currency forward and option contracts	⁽²⁾		2,240		-		2,240		-
Equity investments held in a rabbi trust for the Deferred Compensation Plan	⁽³⁾		5,251		5,251		-		-
Debt investments held in a rabbi trust for the Deferred Compensation Plan	⁽³⁾		1,170		1,170		-		-
Guaranteed investment certificates	⁽⁴⁾		80		-		80		-

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


Liabilities:
Long-term debt	⁽⁵⁾	$	98,000	$	-	$	98,000	$	-
Foreign currency forward and option contracts	⁽⁶⁾		5,063		-		5,063		-

		$	103,063	$	-	$	103,063	$	-

⁽¹⁾	In the accompanying Condensed Consolidated Balance Sheet.

⁽²⁾	Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheet. See Note 5, Financial Derivatives.

⁽³⁾	Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheet. See Note 6, Investments Held in Rabbi Trust.

⁽⁴⁾	Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheet.

⁽⁵⁾	The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 9, Borrowings.

⁽⁶⁾	Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheet. See Note 5, Financial Derivatives.

Certain assets, under certain conditions, are measured at fair value on a nonrecurring basis utilizing Level 3 inputs, like those associated with acquired businesses, including goodwill, other intangible assets 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 June 30, 2014 and December 31, 2013.

Intangible Assets

Note 4. Intangible Assets

The following table presents the Company’s purchased intangible assets as of June 30, 2014 (in thousands):


	Gross Intangibles		Accumulated Amortization			Net Intangibles		Weighted Average Amortization Period (years)
Customer relationships	$	102,771	$	(42,273	)	$	60,498		8
Trade name		11,600		(3,466	)		8,134		8
Non-compete agreements		1,219		(1,174	)		45		2
Proprietary software		850		(850	)		-		2
Favorable lease agreement		449		(419	)		30		2

	$	116,889	$	(48,182	)	$	68,707		8

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


	Gross Intangibles		Accumulated Amortization			Net Intangibles		Weighted Average Amortization Period (years)
Customer relationships	$	102,774	$	(35,873	)	$	66,901		8
Trade name		11,600		(2,803	)		8,797		8
Non-compete agreements		1,220		(1,009	)		211		2
Proprietary software		850		(847	)		3		2
Favorable lease agreement		449		(306	)		143		2

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

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to June 30, 2014, is as follows (in thousands):


Years Ending December 31,	Amount

2014 (remaining six months)	$	7,187
2015		14,140
2016		14,140
2017		14,140
2018		7,639
2019		7,019
2020 and thereafter		4,442

Financial Derivatives

Note 5. Financial Derivatives

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

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


	June 30, 2014		December 31, 2013

Deferred gains (losses) in AOCI	$	(1,205)	$	(2,704)
Tax on deferred gains (losses) in AOCI		(43)		169

Deferred gains (losses) in AOCI, net of taxes	$	(1,248)	$	(2,535)

Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months	$	(1,205)

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

Net Investment Hedge – During the six months ended June 30, 2014 and 2013, the Company entered into foreign exchange forward contracts to hedge its net investment in a foreign operation, as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against the risk that the net assets of certain foreign subsidiaries will be adversely affected by changes in exchange rates and economic exposures related to the Company’s foreign currency-based investments in these subsidiaries.

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

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

As of June 30, 2014

As of December 31, 2013

Contract Type

Notional
Amount in
USD

Settle Through
Date

Notional
Amount in
USD

Settle Through
Date

Cash flow hedges: ⁽¹⁾

Options:

Philippine Pesos

$

69,500

June 2015

$

59,000

December 2014

Forwards:

Philippine Pesos

2,500

July 2014

63,300

July 2014

Costa Rican Colones

39,900

May 2015

41,600

October 2014

Hungarian Forints

1,847

December 2014

550

January 2014

Romanian Leis

4,376

December 2014

619

January 2014

Net investment hedges: ⁽²⁾

Forwards:

Euros

51,028

September 2014

32,657

September 2014

Non-designated hedges: ⁽³⁾

Forwards

63,897

December 2014

59,207

June 2014

⁽¹⁾ Cash flow hedge as defined under ASC 815. Purpose is to protect against the risk that eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates.

⁽²⁾ Net investment hedge as defined under ASC 815. Purpose is to protect against the risk that the net assets of certain of our international subsidiaries will be adversely affected by changes in exchange rates and economic exposures related to our foreign currency-based investments in these subsidiaries.

⁽³⁾ Foreign currency hedge contract not designated as a hedge as defined under ASC 815. Purpose is to reduce the effects on the Company’s operating results and cash flows from fluctuations caused by volatility in currency exchange rates, primarily related to intercompany loan payments and cash held in non-functional currencies.

As of June 30, 2014, the maximum amount of loss due to credit risk that the Company would incur if parties to the financial instruments that make up the concentration failed to perform according to the terms of the contracts was $1.6 million, based on the gross fair value of the financial instruments.

Master netting agreements exist with each respective counterparty used to transact foreign exchange derivatives. These agreements allow the Company to net settle transactions of the same currency in a single transaction. 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. However, the Company has elected to present the derivative assets and derivative liabilities on a gross basis in the accompanying Condensed Consolidated Balance Sheets. Additionally, the Company is not required to pledge nor is it entitled to receive cash collateral related to these derivative transactions.

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


	Derivative Assets
	June 30, 2014		December 31, 2013
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts ⁽¹⁾	$	1,342	$	862

Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts ⁽¹⁾		154		-

		1,496		862

Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts ⁽¹⁾		66		1,378

Total derivative assets	$	1,562	$	2,240


	Derivative Liabilities
	June 30, 2014		December 31, 2013
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts ⁽²⁾	$	1,867	$	2,997

Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts ⁽²⁾		1,712		1,720

		3,579		4,717
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts ⁽²⁾		1,716		346

Total derivative liabilities	$	5,295	$	5,063

(1)

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

(2)

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

The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the three months ended June 30, 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)
	June 30,				June 30,				June 30,
	2014		2013		2014		2013		2014		2013
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	2,475	$	(4,461)	$	(1,755)	$	68	$	(1)	$	(37)

Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		108		(397)		-		-		-		-


Foreign currency forward and option contracts	$	2,583	$	(4,858)	$	(1,755)	$	68	$	(1)	$	(37)


	Gain (Loss) Recognized in “Other income and (expense)” on Derivatives
	June 30,
	2014			2013
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	$	(1,331	)	$	2,755

The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the six months ended June 30, 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)
	June 30,				June 30,				June 30,
	2014		2013		2014		2013		2014		2013
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	(2,543)	$	(1,744)	$	(4,129)	$	799	$	(4)	$	(25)

Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		162		36		-		-		-		-


Foreign currency forward and option contracts	$	(2,381)	$	(1,708)	$	(4,129)	$	799	$	(4)	$	(25)


	Gain (Loss) Recognized in “Other income and (expense)” on Derivatives
	June 30,
	2014			2013
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	$	(608	)	$	2,230

Investments Held in Rabbi Trust

Note 6. Investments Held in Rabbi Trust

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


	June 30, 2014				December 31, 2013
	Cost		Fair Value		Cost		Fair Value
Mutual funds	$	5,435	$	7,405	$	4,749	$	6,421

The mutual funds held in the rabbi trusts were 81% equity-based and 19% debt-based as of June 30, 2014. Net investment income (losses), included in “Other income (expense)” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Gross realized gains from sale of trading securities	$	-	$	16	$	3	$	112
Gross realized (losses) from sale of trading securities		-		(5)		-		(8)
Dividend and interest income		9		8		18		18
Net unrealized holding gains (losses)		204		1		279		196

Net investment income (losses)	$	213	$	20	$	300	$	318

Deferred Revenue

Note 7. Deferred Revenue

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


	June 30, 2014		December 31, 2013
Future service	$	26,133	$	25,102
Estimated potential penalties and holdbacks		9,663		9,923

	$	35,796	$	35,025

Deferred Grants

Note 8. Deferred Grants

The components of deferred grants, net of accumulated amortization, consist of the following (in thousands):


	June 30, 2014		December 31, 2013
Property grants	$	5,867	$	6,643
Employment grants		180		146

Total deferred grants		6,047		6,789
Less: Property grants – short-term ⁽¹⁾		-		(6)
Less: Employment grants – short-term ⁽¹⁾		(180)		(146)

Total long-term deferred grants (2)	$	5,867	$	6,637


⁽¹⁾ Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets. ⁽²⁾ Included in “Deferred grants” in the accompanying Condensed Consolidated Balance Sheets.

Borrowings

Note 9. Borrowings

On May 3, 2012, the Company entered into a $245 million revolving credit facility (the “2012 Credit Agreement”) with a group of lenders and KeyBank National Association, as Lead Arranger, Sole Book Runner and Administrative Agent (“KeyBank”). The 2012 Credit Agreement replaced the Company’s previous $75 million revolving credit facility (the “2010 Credit Agreement”) dated February 2, 2010, as amended, which agreement was terminated simultaneous with entering into the 2012 Credit Agreement. The 2012 Credit Agreement is subject to certain borrowing limitations and includes certain customary financial and restrictive covenants. The Company borrowed $108.0 million under the 2012 Credit Agreement’s revolving credit facility on August 20, 2012 in connection with the acquisition of Alpine Access, Inc. on such date.

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

Borrowings consist of the following (in thousands):


	June 30, 2014		December 31, 2013
Revolving credit facility	$	79,000	$	98,000
Less: Current portion		-		-

Total long-term debt	$	79,000	$	98,000

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

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

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

In May 2012, the Company paid an underwriting fee of $0.9 million for the 2012 Credit Agreement, which is deferred and amortized over the term of the loan.

The 2012 Credit Agreement had $79.0 million of outstanding borrowings as of June 30, 2014, with an average daily utilization of $90.2 million and $105.8 million during the three months ended June 30, 2014 and 2013, respectively, and $93.3 million and $98.5 million during the six months ended June 30, 2014 and 2013, respectively. During the three months ended June 30, 2014 and 2013, the related interest expense, excluding amortization of deferred loan fees, under our credit agreements was $0.3 million and $0.4 million, respectively, which represented weighted average interest rates of 1.3% and 1.5%, respectively. During the six months ended June 30, 2014 and 2013, the related interest expense, excluding amortization of deferred loan fees, under our credit agreements was $0.6 million and $0.7 million, respectively, which represented weighted average interest rates of 1.3% and 1.5%, respectively.

Accumulated Other Comprehensive Income (Loss)

Note 10. Accumulated Other Comprehensive Income (Loss)

The Company presents data in the Condensed 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 Hedge			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		(2,144	)		162			26			(2,547	)		41			(4,462	)
Tax (provision) benefit		-			(57	)		-			(101	)		-			(158	)
Reclassification of (gain) loss to net income		-			-			(25	)		4,020			(23	)		3,972
Foreign currency translation		65			-			20			(85	)		-			-

Balance at June 30, 2014	$	10,672		$	(3,578	)	$	1,171		$	(1,248	)	$	332		$	7,349

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


	Three Months Ended June 30,				Six Months Ended June 30,				Statements of Operations Location
	2014		2013		2014		2013
Actuarial Gain (Loss) Related to Pension Liability: ⁽¹⁾
Pre-tax amount	$	13	$	19	$	25	$	29	Direct salaries and related costs
Tax (provision) benefit		-		-		-		-	Income taxes

Reclassification to net income		13		19		25		29

Gain (Loss) on Cash Flow Hedging Instruments: ⁽²⁾
Pre-tax amount		(1,756)		31		(4,133)		774	Revenues
Tax (provision) benefit		17		54		113		(12)	Income taxes

Reclassification to net income		(1,739)		85		(4,020)		762

Gain (Loss) on Post Retirement Obligation: ⁽¹⁾
Pre-tax amount		12		14		23		30	General and administrative
Tax (provision) benefit		-		-		-		-	Income taxes
Reclassification to net income		12		14		23		30

Total reclassification of gain (loss) to net income	$	(1,714)	$	118	$	(3,972)	$	821

⁽¹⁾

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

⁽²⁾

See Note 5, Financial Derivatives, for further information.

Except as discussed in Note 11, 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

Note 11. Income Taxes

The Company’s effective tax rate was 14.2% and (14.0)% for the three months ended June 30, 2014 and 2013, respectively. The increase in the effective tax rate is primarily due to several factors, including fluctuations in earnings among the various jurisdictions in which the Company operates, none of which are individually material. The difference between the Company’s effective tax rate of 14.2% as compared to the U.S. statutory federal income tax rate of 35.0% was primarily due to the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in unrecognized tax positions and tax credits, partially offset by the tax impact of permanent differences, adjustments of valuation allowances and foreign withholding taxes.

The Company’s effective tax rate was 24.1% and 17.2% for the six months ended June 30, 2014 and 2013, respectively. The increase in the effective tax rate is primarily due to several factors, including fluctuations in earnings among the various jurisdictions in which the Company operates, none of which are individually material. This increase was partially offset by the recognition in 2013 of the retroactive tax impact of The American Taxpayer Relief Act of 2012. The difference between the Company’s effective tax rate of 24.1% as compared to the U.S. statutory federal income tax rate of 35.0% was primarily due to the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in unrecognized tax positions and tax credits, partially offset by the tax impact of permanent differences, adjustments of valuation allowances and foreign withholding taxes.

The Company has accrued $15.0 million as of June 30, 2014 and December 31, 2013, excluding penalties and interest, for the liability for unrecognized tax benefits. As of June 30, 2014, $4.0 million of unrecognized tax benefits have been recorded to “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheet in accordance with ASU 2013-11. The remaining $11.0 million of the unrecognized tax benefits at June 30, 2014 and the $15.0 million at December 31, 2013 are recorded in “Long-term income tax liabilities” in the accompanying Condensed Consolidated Balance Sheets.

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

In 2013, the Company executed offshore cash movements to take advantage of The American Taxpayer Relief Act of 2012 (the “Act”) passed on January 2, 2013, with retroactive application to January 1, 2012. This Act, which extended the tax provisions of the Internal Revenue Code Section 954(c)(6) through the end of 2013, permitted continued tax deferral on such movements which would otherwise be taxable immediately in the U.S. While the 2013 cash movements related to this law change are not taxable in the U.S., related foreign withholding taxes of $2.4 million were included in the provision for income taxes in the accompanying Condensed Consolidated Statement of Operations for the six months ended June 30, 2013.

The U.S. Department of the Treasury released the “General Explanations of the Administration’s Fiscal Year 2015 Revenue Proposals” in March 2014. These proposals represent a significant shift in international tax policy, which may materially impact U.S. taxation of international earnings. The Company continues to monitor these proposals and is currently evaluating the potential impact on its financial condition, results of operations and cash flows.

The Company is currently under audit in several tax jurisdictions. The Company has received assessments for the Canadian 2003-2009 audit. Requests for Competent Authority Assistance were filed with both the Canadian Revenue Agency and the U.S. Internal Revenue Service and the Company paid mandatory security deposits to Canada as part of this process. The total amount of deposits, net of fluctuations in the foreign exchange rate, are $17.2 million and $17.3 million as of June 30, 2014 and December 31, 2013, respectively, and are included in “Deferred charges and other assets” in the accompanying Condensed 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 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
Philippines		2009 and 2010
United States		2011 and 2012

Earnings Per Share

Note 12. Earnings Per Share

Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock options, 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):

Three Months Ended June 30,

Six Months Ended June 30,

2014

2013

2014

2013

Basic:

Weighted average common shares outstanding

42,711

42,936

42,726

42,992

Diluted:

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

99

18

119

19

Total weighted average diluted shares outstanding

42,810

42,954

42,845

43,011

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

49

7

70

4

On August 18, 2011, the Company’s Board authorized the Company to purchase up to 5.0 million shares of its outstanding common stock (the “2011 Share Repurchase Program”). A total of 3.5 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 of Shares		Range of Prices Paid Per Share				Total Cost of Shares
	Repurchased		Low		High		Repurchased
Three Months Ended:
June 30, 2014		-	$	-	$	-	$	-
June 30, 2013		272	$	15.61	$	16.00	$	4,294
Six Months Ended:
June 30, 2014		130	$	15.61	$	16.99	$	2,605
June 30, 2013		272	$	15.61	$	16.00	$	4,294

Commitments and Loss Contingency

Note 13. Commitments and Loss Contingency

Commitments

During the six months ended June 30, 2014, the Company entered into several leases in the ordinary course of business. The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of June 30, 2014 (in thousands):


	Amount
2014 (remaining six months)	$	928
2015		3,630
2016		3,260
2017		2,501
2018		2,330
2019		1,969
2020 and thereafter		4,907

Total minimum payments required	$	19,525

During the six months ended June 30, 2014, the Company entered into agreements with third-party vendors in the ordinary course of business whereby the Company committed to purchase goods and services used in its normal operations. These agreements, which are not cancelable, generally range from one to five year periods and contain fixed or minimum annual commitments. Certain of these agreements allow for renegotiation of the minimum annual commitments based on certain conditions. The following is a schedule of the future minimum purchases remaining under the agreements as of June 30, 2014 (in thousands):


	Amount
2014 (remaining six months)	$	7,850
2015		12,014
2016		10,391
2017		4,345
2018		-
2019		-
2020 and thereafter		-

Total minimum payments required	$	34,600

Except as outlined above, there have not been any material changes to the outstanding contractual obligations from the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2013.

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

Note 14. Defined Benefit Pension Plan and Postretirement Benefits

Defined Benefit Pension Plans

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Service cost	$	101		$	87		$	201		$	175
Interest cost		31			29			61			58
Recognized actuarial (gains)		(13	)		(14	)		(25	)		(29	)

Net periodic benefit cost	$	119		$	102		$	237		$	204

Employee Retirement Savings Plans

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
401(k) plan contributions	$	221	$	245	$	480	$	478

Split-Dollar Life Insurance Arrangement

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


	June 30, 2014		December 31, 2013
Postretirement benefit obligation	$	62	$	81
Unrealized gains (losses) in AOCI ⁽¹⁾	$	332	$	314

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

Stock-Based Compensation

Note 15. 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):


	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Stock-based compensation (expense) ⁽¹⁾	$	(937	)	$	(1,526	)	$	(1,691	)	$	(2,190	)
Income tax benefit ⁽²⁾		328			535			592			767
Excess tax benefit (deficiency) from stock-based compensation ⁽³⁾		(84	)		-			(30	)		(34	)

⁽¹⁾

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

⁽²⁾

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

⁽³⁾

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

There were no capitalized stock-based compensation costs as of June 30, 2014 and December 31, 2013.

2011 Equity Incentive Plan – The Company’s Board of Directors (the “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, members of the Company’s Board of Directors 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 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. The 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. The fair value of each SAR is estimated on the date of grant using the Black-Scholes valuation model that uses various assumptions.

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


	Six Months Ended June 30,
	2014			2013
Expected volatility		38.9	%		45.2	%
Weighted-average volatility		38.9	%		45.2	%
Expected dividend rate		0.0	%		0.0	%
Expected term (in years)		5.0			5.0
Risk-free rate		1.7	%		0.8	%

The following table summarizes SARs activity as of June 30, 2014 and for the six months then ended:


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

Outstanding at January 1, 2014		963	$	-
Granted		246	$	-
Exercised		(70)	$	-
Forfeited or expired		(155)	$	-

Outstanding at June 30, 2014		984	$	-		7.4	$	3,703

Vested or expected to vest at June 30, 2014		984	$	-		7.4	$	3,703

Exercisable at June 30, 2014		573	$	-		6.2	$	1,945

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


	Six Months Ended June 30,
	2014		2013
Number of SARs granted		246		318
Weighted average grant-date fair value per SAR	$	7.20	$	6.08
Intrinsic value of SARs exercised	$	333	$	-
Fair value of SARs vested	$	1,553	$	1,298

The following table summarizes nonvested SARs activity as of June 30, 2014 and for the six months then ended:


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

Nonvested at January 1, 2014		535	$	6.17
Granted		246	$	7.20
Vested		(246)	$	6.31
Forfeited or expired		(124)	$	6.48

Nonvested at June 30, 2014		411	$	6.61

As of June 30, 2014, there was $2.4 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested SARs granted under the 2011 Plan and 2001 Plan. This cost is expected to be recognized over a weighted average period of 1.5 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.

The following table summarizes nonvested restricted shares/RSUs activity as of June 30, 2014 and for the six months then ended:


Nonvested Restricted Shares and RSUs	Shares (000s)		Weighted Average Grant- Date Fair Value

Nonvested at January 1, 2014		1,367	$	15.96
Granted		500	$	19.77
Vested		(57)	$	15.67
Forfeited or expired		(601)	$	17.47

Nonvested at June 30, 2014		1,209	$	16.80

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


	Six Months Ended June 30,
	2014		2013
Number of restricted shares/RSUs granted		500		706
Weighted average grant-date fair value per restricted share/RSU	$	19.77	$	15.25
Fair value of restricted shares/RSUs vested	$	895	$	366

As of June 30, 2014, based on the probability of achieving the performance goals, there was $17.8 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted shares/RSUs granted under the 2011 Plan and 2001 Plan. This cost is expected to be recognized over a weighted average period of 1.9 years.

2004 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 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 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 Committee to $15,000. All other additional cash awards remained unchanged.

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

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

The following table summarizes nonvested common stock share award activity as of June 30, 2014 and for the six months then ended:


Nonvested Common Stock Share Awards	Shares (000s)		Weighted Average Grant- Date Fair Value

Nonvested at January 1, 2014		9	$	16.01
Granted		36	$	20.15
Vested		(17)	$	17.89
Forfeited or expired		-	$	-

Nonvested at June 30, 2014		28	$	20.16

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


	Six Months Ended June 30,
	2014		2013
Number of share awards granted		36		37
Weighted average grant-date fair value per share award	$	20.15	$	16.01
Fair value of share awards vested	$	310	$	369

As of June 30, 2014, there was $0.5 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested common stock share awards granted under the 2004 Fee Plan. This cost is expected to be recognized over a weighted average period of 0.7 years.

Deferred Compensation Plan — The Company’s non-qualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which is not shareholder-approved, was adopted by the Board effective December 17, 1998 and amended on March 29, 2006 and May 23, 2006. 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, executive vice presidents and senior vice presidents and $7,500 per year for 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 6, Investments Held in Rabbi Trust). As of June 30, 2014 and December 31, 2013, liabilities of $7.4 million and $6.4 million, respectively, of the Deferred Compensation Plan were recorded in “Accrued employee compensation and benefits” in the accompanying Condensed Consolidated Balance Sheets.

Additionally, the Company’s common stock match associated with the Deferred Compensation Plan, with a carrying value of approximately $1.8 million and $1.6 million at June 30, 2014 and December 31, 2013, respectively, is included in “Treasury stock” in the accompanying Condensed Consolidated Balance Sheets.

The following table summarizes nonvested common stock activity as of June 30, 2014 and for the six months then ended:


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

Nonvested at January 1, 2014		6	$	16.89
Granted		8	$	20.43
Vested		(7)	$	20.16
Forfeited or expired		(1)	$	17.08

Nonvested at June 30, 2014		6	$	17.46

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


	Six Months Ended June 30,
	2014		2013
Number of shares of common stock granted		8		10
Weighted average grant-date fair value per common stock	$	20.43	$	15.89
Fair value of common stock vested	$	146	$	147
Cash used to settle the obligation	$	21	$	1,014

As of June 30, 2014, there was $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 2.4 years.

Segments and Geographic Information

Note 16. Segments and Geographic Information

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

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


	Americas		EMEA		Other ⁽¹⁾		Consolidated
Three Months Ended June 30, 2014:
Revenues	$	256,663	$	63,835			$	320,498
Percentage of revenues		80.1%		19.9%				100.0%

Depreciation, net ⁽²⁾	$	10,107	$	1,215			$	11,322
Amortization of intangibles	$	3,659	$	-			$	3,659

Income (loss) from operations	$	21,135	$	1,561	$	(12,269)	$	10,427
Other income (expense), net						(714)		(714)
Income taxes						(1,376)		(1,376)

Net income							$	8,337


Total assets as of June 30, 2014	$	1,093,003	$	1,444,643	$	(1,591,697)	$	945,949


Three Months Ended June 30, 2013:
Revenues	$	255,163	$	49,572			$	304,735
Percentage of revenues		83.7%		16.3%				100.0%
Depreciation, net ⁽²⁾	$	9,079	$	938			$	10,017
Amortization of intangibles	$	3,713	$	-			$	3,713

Income (loss) from operations	$	19,221	$	(1,924)	$	(11,680)	$	5,617
Other income (expense), net						(709)		(709)
Income taxes						688		688

Net income							$	5,596


Total assets as of June 30, 2013	$	1,107,110	$	1,363,615	$	(1,545,165)	$	925,560


	Americas		EMEA		Other ⁽¹⁾		Consolidated
Six Months Ended June 30, 2014:
Revenues	$	517,909	$	127,018			$	644,927
Percentage of revenues		80.3%		19.7%				100.0%

Depreciation, net ⁽²⁾	$	20,248	$	2,372			$	22,620
Amortization of intangibles	$	7,310	$	-			$	7,310

Income (loss) from operations	$	43,782	$	4,445	$	(23,322)	$	24,905
Other income (expense), net						(319)		(319)
Income taxes						(5,936)		(5,936)

Net income							$	18,650


Six Months Ended June 30, 2013:
Revenues	$	510,377	$	95,602			$	605,979
Percentage of revenues		84.2%		15.8%				100.0%

Depreciation, net ⁽²⁾	$	18,257	$	1,929			$	20,186
Amortization of intangibles	$	7,472	$	-			$	7,472

Income (loss) from operations	$	38,743	$	(69)	$	(23,180)	$	15,494
Other income (expense), net						(868)		(868)
Income taxes						(2,512)		(2,512)

Net income							$	12,114

⁽¹⁾

Other items (including corporate 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 three and six months ended June 30, 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 revenue and income (loss) from operations, and does not include segment assets or other income and expense items for management reporting purposes.

⁽²⁾

Depreciation is net of property grant amortization.

Other Income (Expense)

Note 17. Other Income (Expense)

Gains and losses resulting from foreign currency transactions are recorded in “Other income (expense)” in the accompanying Condensed Consolidated Statements of Operations during the period in which they occur. Other income (expense) consists of the following (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Foreign currency transaction gains (losses)	$	759		$	(2,968	)	$	631		$	(2,734	)
Gains (losses) on foreign currency derivative instruments not designated as hedges		(1,331	)		2,755			(608	)		2,230
Other miscellaneous income (expense)		173			(126	)		241			290

	$	(399	)	$	(339	)	$	264		$	(214	)

Related Party Transactions

Note 18. 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 $0.1 million to the landlord during both the three months ended June 30, 2014 and 2013 and $0.2 million to the landlord during both the six months ended June 30, 2014 and 2013 under the terms of the lease.

Overview and Basis of Presentation (Policies)

Business

Business — Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) provides comprehensive outsourced customer contact management solutions and services in the business process outsourcing arena to companies, primarily within the communications, financial services, technology/consumer, transportation and leisure, and healthcare industries. SYKES provides flexible, high-quality outsourced customer contact management services (with an emphasis on inbound technical support and customer service), which includes customer assistance, healthcare and roadside assistance, technical support and product sales to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels encompassing phone, e-mail, social media, text messaging and chat. SYKES complements its outsourced customer contact management services with various enterprise support services in the United States that encompass services for a company’s internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services including multilingual sales order processing via the Internet and phone, 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.

Basis of Presentation

Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2014. For further information, refer to the consolidated financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission (“SEC”) on February 20, 2014.

Principles of Consolidation

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

Use of Estimates

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

Subsequent Events

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

New Accounting Standards Not Yet Adopted

New Accounting Standards Not Yet Adopted

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

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

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

New Accounting Standards Recently Adopted

New Accounting Standards Recently Adopted

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

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

Fair Value Measurements

ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) 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.

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

—

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

—

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

—

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

Fair Value Measurements — ASC 820 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.

Financial Instruments

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.

Foreign Currency and Derivative Instruments

Cash Flow Hedges – The Company has derivative assets and liabilities relating to outstanding forward contracts and options, designated as cash flow hedges, as defined under ASC 815 “Derivatives and Hedging” (“ASC 815”), consisting of Philippine Peso, Costa Rican Colon, Hungarian Forint and Romanian Leu contracts. These 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.

Income Taxes

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

Earnings Per Share

Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock options, stock appreciation rights, restricted stock, restricted stock units and shares held in a rabbi trust using the treasury stock method.

Segments and Geographic Information

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

Costs Associated with Exit or Disposal Activities (Tables)

Summary of Accrued Liability Associated with the Company's Exit Plans

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 June 30, 2014 and December 31, 2013 (in thousands):


	Americas Fourth Quarter 2011 Exit Plan		EMEA Fourth Quarter 2011 Exit Plan		Fourth Quarter 2010 Exit Plan		Third Quarter 2010 Exit Plan		Total
June 30, 2014
Short-term accrued restructuring liability ⁽¹⁾	$	138	$	131	$	-	$	507	$	776
Long-term accrued restructuring liability ⁽²⁾		290		-		-		1,045		1,335

Ending accrual at June 30, 2014	$	428	$	131	$	-	$	1,552	$	2,111

December 31, 2013
Short-term accrued restructuring liability ⁽¹⁾	$	136	$	131	$	538	$	440	$	1,245
Long-term accrued restructuring liability ⁽²⁾		376		-		-		1,353		1,729

Ending accrual at December 31, 2013	$	512	$	131	$	538	$	1,793	$	2,974

⁽¹⁾

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

⁽²⁾

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

Summary of Accrued Liability Associated with the Company's Exit Plans

The following tables summarize the accrued liability associated with the Americas Fourth Quarter 2011 Exit Plan’s exit or disposal activities and related charges for the three months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at April 1, 2014		Charges (Reversals) for the Three Months Ended June 30, 2014		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	469	$	-	$	(41	)	$	-	$	428


	Beginning Accrual at April 1, 2013		Charges (Reversals) for the Three Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	647	$	-	$	(41	)	$	-	$	606

The following tables summarize the accrued liability associated with the Americas Fourth Quarter 2011 Exit Plan’s exit or disposal activities and related charges for the six months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at January 1, 2014		Charges (Reversals) for the Six Months Ended June 30, 2014		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	512	$	-	$	(84	)	$	-	$	428


	Beginning Accrual at January 1, 2013		Charges (Reversals) for the Six Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	682	$	-	$	(76	)	$	-	$	606

The following tables summarize the accrued liability associated with EMEA’s Fourth Quarter 2011 Exit Plan’s exit or disposal activities and related charges for the three months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at April 1, 2014		Charges (Reversals) for the Three Months Ended June 30, 2014		Cash Payments		Other Non-Cash Changes ⁽²⁾			Ending Accrual at June 30, 2014
Severance and related costs	$	132	$	-	$	-	$	(1	)	$	131
Legal-related costs		-		-		-		-			-

	$	132	$	-	$	-	$	(1	)	$	131


	Beginning Accrual at April 1, 2013		Charges (Reversals) for the Three Months Ended June 30, 2013 ⁽¹⁾		Cash Payments			Other Non-Cash Changes ⁽²⁾		Ending Accrual at June 30, 2013
Severance and related costs	$	182	$	-	$	-		$	2	$	184
Legal-related costs		5		3		(3	)		-		5

	$	187	$	3	$	(3	)	$	2	$	189

⁽¹⁾

During 2013, the Company recorded additional severance and related costs and legal-related costs, which are recorded in “General and administrative” costs in the accompanying Condensed Consolidated Statement of Operations.

⁽²⁾

Effect of foreign currency translation.

The following tables summarize the accrued liability associated with EMEA’s Fourth Quarter 2011 Exit Plan’s exit or disposal activities and related charges for the six months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at January 1, 2014		Charges (Reversals) for the Six Months Ended June 30, 2014		Cash Payments		Other Non-Cash Changes ⁽²⁾		Ending Accrual at June 30, 2014
Severance and related costs	$	131	$	-	$	-	$	-	$	131
Legal-related costs		-		-		-		-		-

	$	131	$	-	$	-	$	-	$	131


	Beginning Accrual at January 1, 2013		Charges (Reversals) for the Six Months Ended June 30, 2013 ⁽¹⁾		Cash Payments			Other Non-Cash Changes ⁽²⁾			Ending Accrual at June 30, 2013
Severance and related costs	$	187	$	6	$	(7	)	$	(2	)	$	184
Legal-related costs		10		4		(10	)		1			5

	$	197	$	10	$	(17	)	$	(1	)	$	189

⁽¹⁾

During 2013, the Company recorded additional severance and related costs and legal-related costs, which are recorded in “General and administrative” costs in the accompanying Condensed Consolidated Statement of Operations.

⁽²⁾

Effect of foreign currency translation.

Summary of Accrued Liability Associated with the Company's Exit Plans

The following tables summarize the accrued liability associated with the Fourth Quarter 2010 Exit Plan’s exit or disposal activities and related charges during the three months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at April 1, 2014		Charges (Reversals) for the Three Months Ended June 30, 2014 ⁽¹⁾			Cash Payments			Other Non-Cash Changes ⁽²⁾			Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	433	$	(185	)	$	(242	)	$	(6	)	$	-


	Beginning Accrual at April 1, 2013		Charges (Reversals) for the Three Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes ⁽²⁾		Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	449	$	-	$	(100	)	$	7	$	356

⁽¹⁾

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

⁽²⁾

Effect of foreign currency translation.

The following tables summarize the accrued liability associated with the Fourth Quarter 2010 Exit Plan’s exit or disposal activities and related charges during the six months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at January 1, 2014		Charges (Reversals) for the Six Months Ended June 30, 2014 ⁽¹⁾			Cash Payments			Other Non-Cash Changes ⁽²⁾			Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	538	$	(185	)	$	(348	)	$	(5	)	$	-


	Beginning Accrual at January 1, 2013		Charges (Reversals) for the Six Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes ⁽²⁾			Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	539	$	-	$	(180	)	$	(3	)	$	356

⁽¹⁾	During 2014, the Company reversed accruals related to the final settlement of lease obligations and facility exit costs related to the Ireland site, which reduced “General and administrative” costs in the accompanying Condensed Consolidated Statement of Operations.

⁽²⁾	Effect of foreign currency translation.

Summary of Accrued Liability Associated with the Company's Exit Plans

The following tables summarize the accrued liability associated with the Third Quarter 2010 Exit Plan’s exit or disposal activities and related charges for the three months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at April 1, 2014		Charges (Reversals) for the Three Months Ended June 30, 2014		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	1,697	$	-	$	(145	)	$	-	$	1,552


	Beginning Accrual at April 1, 2013		Charges (Reversals) for the Three Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes		Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	2,328	$	-	$	(163	)	$	-	$	2,165

The following tables summarize the accrued liability associated with the Third Quarter 2010 Exit Plan’s exit or disposal activities and related charges for the six months ended June 30, 2014 and 2013 (in thousands):


	Beginning Accrual at January 1, 2014		Charges (Reversals) for the Six Months Ended June 30, 2014		Cash Payments			Other Non-Cash Changes			Ending Accrual at June 30, 2014
Lease obligations and facility exit costs	$	1,793	$	-	$	(241	)	$	-		$	1,552


	Beginning Accrual at January 1, 2013		Charges (Reversals) for the Six Months Ended June 30, 2013		Cash Payments			Other Non-Cash Changes ⁽¹⁾			Ending Accrual at June 30, 2013
Lease obligations and facility exit costs	$	2,551	$	-	$	(385	)	$	(1	)	$	2,165

⁽¹⁾

Effect of foreign currency translation.

Fair Value (Tables)

Assets and Liabilities Measured at Fair Value on a Recurring Basis

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


		Fair Value Measurements at June 30, 2014 Using:
		Balance at		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
		June 30, 2014		Level (1)		Level (2)		Level (3)
Assets:
Money market funds and open-end mutual funds included in “Cash and cash equivalents”	⁽¹⁾	$	81,145	$	81,145	$	-	$	-
Money market funds and open-end mutual funds in “Deferred charges and other assets”	⁽¹⁾		11		11		-		-
Foreign currency forward and option contracts	⁽²⁾		1,562		-		1,562		-
Equity investments held in a rabbi trust for the Deferred Compensation Plan	⁽³⁾		6,015		6,015		-		-
Debt investments held in a rabbi trust for the Deferred Compensation Plan	⁽³⁾		1,390		1,390		-		-
Guaranteed investment certificates ⁽⁴⁾			79		-		79		-

		$	90,202	$	88,561	$	1,641	$	-

Liabilities:
Long-term debt	⁽⁵⁾	$	79,000	$	-	$	79,000	$	-
Foreign currency forward and option contracts	⁽⁶⁾		5,295		-		5,295		-

		$	84,295	$	-	$	84,295	$	-


		Fair Value Measurements at December 31, 2013 Using:
		Balance at		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
		December 31, 2013		Level (1)		Level (2)		Level (3)
Assets:
Money market funds and open-end mutual funds included in “Cash and cash equivalents”	⁽¹⁾	$	50,627	$	50,627	$	-	$	-
Money market funds and open-end mutual funds in “Deferred charges and other assets”	⁽¹⁾		11		11		-		-
Foreign currency forward and option contracts	⁽²⁾		2,240		-		2,240		-
Equity investments held in a rabbi trust for the Deferred Compensation Plan	⁽³⁾		5,251		5,251		-		-
Debt investments held in a rabbi trust for the Deferred Compensation Plan	⁽³⁾		1,170		1,170		-		-
Guaranteed investment certificates	⁽⁴⁾		80		-		80		-

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


Liabilities:
Long-term debt	⁽⁵⁾	$	98,000	$	-	$	98,000	$	-
Foreign currency forward and option contracts	⁽⁶⁾		5,063		-		5,063		-

		$	103,063	$	-	$	103,063	$	-

⁽¹⁾	In the accompanying Condensed Consolidated Balance Sheet.

⁽²⁾	Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheet. See Note 5, Financial Derivatives.

⁽³⁾	Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheet. See Note 6, Investments Held in Rabbi Trust.

⁽⁴⁾	Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheet.

⁽⁵⁾	The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 9, Borrowings.

⁽⁶⁾	Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheet. See Note 5, Financial Derivatives.

Intangible Assets (Tables)

Company's Purchased Intangible Assets

The following table presents the Company’s purchased intangible assets as of June 30, 2014 (in thousands):


	Gross Intangibles		Accumulated Amortization			Net Intangibles		Weighted Average Amortization Period (years)
Customer relationships	$	102,771	$	(42,273	)	$	60,498		8
Trade name		11,600		(3,466	)		8,134		8
Non-compete agreements		1,219		(1,174	)		45		2
Proprietary software		850		(850	)		-		2
Favorable lease agreement		449		(419	)		30		2

	$	116,889	$	(48,182	)	$	68,707		8

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


	Gross Intangibles		Accumulated Amortization			Net Intangibles		Weighted Average Amortization Period (years)
Customer relationships	$	102,774	$	(35,873	)	$	66,901		8
Trade name		11,600		(2,803	)		8,797		8
Non-compete agreements		1,220		(1,009	)		211		2
Proprietary software		850		(847	)		3		2
Favorable lease agreement		449		(306	)		143		2

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

Estimated Future Amortization Expense

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to June 30, 2014, is as follows (in thousands):


Years Ending December 31,	Amount

2014 (remaining six months)	$	7,187
2015		14,140
2016		14,140
2017		14,140
2018		7,639
2019		7,019
2020 and thereafter		4,442

Financial Derivatives (Tables)

Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges

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


	June 30, 2014		December 31, 2013

Deferred gains (losses) in AOCI	$	(1,205)	$	(2,704)
Tax on deferred gains (losses) in AOCI		(43)		169

Deferred gains (losses) in AOCI, net of taxes	$	(1,248)	$	(2,535)

Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months	$	(1,205)

Outstanding Foreign Currency Forward Contracts and Options

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

As of June 30, 2014

As of December 31, 2013

Contract Type

Notional
Amount in
USD

Settle Through
Date

Notional
Amount in
USD

Settle Through
Date

Cash flow hedges: ⁽¹⁾

Options:

Philippine Pesos

$

69,500

June 2015

$

59,000

December 2014

Forwards:

Philippine Pesos

2,500

July 2014

63,300

July 2014

Costa Rican Colones

39,900

May 2015

41,600

October 2014

Hungarian Forints

1,847

December 2014

550

January 2014

Romanian Leis

4,376

December 2014

619

January 2014

Net investment hedges: ⁽²⁾

Forwards:

Euros

51,028

September 2014

32,657

September 2014

Non-designated hedges: ⁽³⁾

Forwards

63,897

December 2014

59,207

June 2014

⁽¹⁾ Cash flow hedge as defined under ASC 815. Purpose is to protect against the risk that eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates.

⁽²⁾ Net investment hedge as defined under ASC 815. Purpose is to protect against the risk that the net assets of certain of our international subsidiaries will be adversely affected by changes in exchange rates and economic exposures related to our foreign currency-based investments in these subsidiaries.

⁽³⁾ Foreign currency hedge contract not designated as a hedge as defined under ASC 815. Purpose is to reduce the effects on the Company’s operating results and cash flows from fluctuations caused by volatility in currency exchange rates, primarily related to intercompany loan payments and cash held in non-functional currencies.

Derivative Instruments Fair Value

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


	Derivative Assets
	June 30, 2014		December 31, 2013
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts ⁽¹⁾	$	1,342	$	862

Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts ⁽¹⁾		154		-

		1,496		862

Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts ⁽¹⁾		66		1,378

Total derivative assets	$	1,562	$	2,240


	Derivative Liabilities
	June 30, 2014		December 31, 2013
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts ⁽²⁾	$	1,867	$	2,997

Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts ⁽²⁾		1,712		1,720

		3,579		4,717
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts ⁽²⁾		1,716		346

Total derivative liabilities	$	5,295	$	5,063

(1)

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

(2)

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

Effect of the Company's Derivative Instruments

The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the three months ended June 30, 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)
	June 30,				June 30,				June 30,
	2014		2013		2014		2013		2014		2013
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	2,475	$	(4,461)	$	(1,755)	$	68	$	(1)	$	(37)

Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		108		(397)		-		-		-		-


Foreign currency forward and option contracts	$	2,583	$	(4,858)	$	(1,755)	$	68	$	(1)	$	(37)


	Gain (Loss) Recognized in “Other income and (expense)” on Derivatives
	June 30,
	2014			2013
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	$	(1,331	)	$	2,755

The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the six months ended June 30, 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)
	June 30,				June 30,				June 30,
	2014		2013		2014		2013		2014		2013
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	(2,543)	$	(1,744)	$	(4,129)	$	799	$	(4)	$	(25)

Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		162		36		-		-		-		-


Foreign currency forward and option contracts	$	(2,381)	$	(1,708)	$	(4,129)	$	799	$	(4)	$	(25)


	Gain (Loss) Recognized in “Other income and (expense)” on Derivatives
	June 30,
	2014			2013
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	$	(608	)	$	2,230

Investments Held in Rabbi Trust (Tables)

Investments Held in Rabbi Trust, Classified as Trading

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


	June 30, 2014				December 31, 2013
	Cost		Fair Value		Cost		Fair Value
Mutual funds	$	5,435	$	7,405	$	4,749	$	6,421

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

The mutual funds held in the rabbi trusts were 81% equity-based and 19% debt-based as of June 30, 2014. Net investment income (losses), included in “Other income (expense)” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Gross realized gains from sale of trading securities	$	-	$	16	$	3	$	112
Gross realized (losses) from sale of trading securities		-		(5)		-		(8)
Dividend and interest income		9		8		18		18
Net unrealized holding gains (losses)		204		1		279		196

Net investment income (losses)	$	213	$	20	$	300	$	318

Deferred Revenue (Tables)

Components of Deferred Revenue

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


	June 30, 2014		December 31, 2013
Future service	$	26,133	$	25,102
Estimated potential penalties and holdbacks		9,663		9,923

	$	35,796	$	35,025

Deferred Grants (Tables)

Schedule of Deferred Grants, Net of Accumulated Amortization

The components of deferred grants, net of accumulated amortization, consist of the following (in thousands):


	June 30, 2014		December 31, 2013
Property grants	$	5,867	$	6,643
Employment grants		180		146

Total deferred grants		6,047		6,789
Less: Property grants – short-term ⁽¹⁾		-		(6)
Less: Employment grants – short-term ⁽¹⁾		(180)		(146)

Total long-term deferred grants (2)	$	5,867	$	6,637


⁽¹⁾ Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets. ⁽²⁾ Included in “Deferred grants” in the accompanying Condensed Consolidated Balance Sheets.

Borrowings (Tables)

Components of Borrowings

Borrowings consist of the following (in thousands):


	June 30, 2014		December 31, 2013
Revolving credit facility	$	79,000	$	98,000
Less: Current portion		-		-

Total long-term debt	$	79,000	$	98,000

Accumulated Other Comprehensive Income (Loss) (Tables)

Components of Accumulated Other Comprehensive Income (Loss)

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 Hedge			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		(2,144	)		162			26			(2,547	)		41			(4,462	)
Tax (provision) benefit		-			(57	)		-			(101	)		-			(158	)
Reclassification of (gain) loss to net income		-			-			(25	)		4,020			(23	)		3,972
Foreign currency translation		65			-			20			(85	)		-			-

Balance at June 30, 2014	$	10,672		$	(3,578	)	$	1,171		$	(1,248	)	$	332		$	7,349

Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss)

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


	Three Months Ended June 30,				Six Months Ended June 30,				Statements of Operations Location
	2014		2013		2014		2013
Actuarial Gain (Loss) Related to Pension Liability: ⁽¹⁾
Pre-tax amount	$	13	$	19	$	25	$	29	Direct salaries and related costs
Tax (provision) benefit		-		-		-		-	Income taxes

Reclassification to net income		13		19		25		29

Gain (Loss) on Cash Flow Hedging Instruments: ⁽²⁾
Pre-tax amount		(1,756)		31		(4,133)		774	Revenues
Tax (provision) benefit		17		54		113		(12)	Income taxes

Reclassification to net income		(1,739)		85		(4,020)		762

Gain (Loss) on Post Retirement Obligation: ⁽¹⁾
Pre-tax amount		12		14		23		30	General and administrative
Tax (provision) benefit		-		-		-		-	Income taxes
Reclassification to net income		12		14		23		30

Total reclassification of gain (loss) to net income	$	(1,714)	$	118	$	(3,972)	$	821

⁽¹⁾

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

⁽²⁾

See Note 5, Financial Derivatives, for further information.

Income Taxes (Tables)

Summary of Significant Tax Jurisdictions Currently under Audit

The significant tax jurisdictions currently under audit are as follows:


Tax Jurisdiction		Tax Year Ended

Canada		2003 to 2009
Philippines		2009 and 2010
United States		2011 and 2012

Earnings Per Share (Tables)

Numbers of Shares Used in Earnings Per Share Computation

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

Three Months Ended June 30,

Six Months Ended June 30,

2014

2013

2014

2013

Basic:

Weighted average common shares outstanding

42,711

42,936

42,726

42,992

Diluted:

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

99

18

119

19

Total weighted average diluted shares outstanding

42,810

42,954

42,845

43,011

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

49

7

70

4

Shares Repurchased

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


	Total Number of Shares		Range of Prices Paid Per Share				Total Cost of Shares
	Repurchased		Low		High		Repurchased
Three Months Ended:
June 30, 2014		-	$	-	$	-	$	-
June 30, 2013		272	$	15.61	$	16.00	$	4,294
Six Months Ended:
June 30, 2014		130	$	19.92	$	19.98	$	2,605
June 30, 2013		272	$	15.61	$	16.00	$	4,294

Commitments and Loss Contingency (Tables)

Schedule of Future Minimum Rental Payments for Operating Leases

The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of June 30, 2014 (in thousands):


	Amount
2014 (remaining six months)	$	928
2015		3,630
2016		3,260
2017		2,501
2018		2,330
2019		1,969
2020 and thereafter		4,907

Total minimum payments required	$	19,525

Schedule of Future Minimum Purchases Remaining under Agreements

The following is a schedule of the future minimum purchases remaining under the agreements as of June 30, 2014 (in thousands):


	Amount
2014 (remaining six months)	$	7,850
2015		12,014
2016		10,391
2017		4,345
2018		-
2019		-
2020 and thereafter		-

Total minimum payments required	$	34,600

Defined Benefit Pension Plan and Postretirement Benefits (Tables)

Net Periodic Benefit Cost for Pension Plans

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Service cost	$	101		$	87		$	201		$	175
Interest cost		31			29			61			58
Recognized actuarial (gains)		(13	)		(14	)		(25	)		(29	)

Net periodic benefit cost	$	119		$	102		$	237		$	204

Company's Contributions to Employee Retirement Savings Plans

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
401(k) plan contributions	$	221	$	245	$	480	$	478

Post-Retirement Benefit Obligation and Unrealized Gain (Losses)

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


	June 30, 2014		December 31, 2013
Postretirement benefit obligation	$	62	$	81
Unrealized gains (losses) in AOCI ⁽¹⁾	$	332	$	314

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

Stock-Based Compensation (Tables)

Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company

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):


	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Stock-based compensation (expense) ⁽¹⁾	$	(937	)	$	(1,526	)	$	(1,691	)	$	(2,190	)
Income tax benefit ⁽²⁾		328			535			592			767
Excess tax benefit (deficiency) from stock-based compensation ⁽³⁾		(84	)		-			(30	)		(34	)

⁽¹⁾

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

⁽²⁾

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

⁽³⁾

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

Summary of Assumptions Used to Estimate Fair Value

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


	Six Months Ended June 30,
	2014			2013
Expected volatility		38.9	%		45.2	%
Weighted-average volatility		38.9	%		45.2	%
Expected dividend rate		0.0	%		0.0	%
Expected term (in years)		5.0			5.0
Risk-free rate		1.7	%		0.8	%

Summary of Stock Appreciation Rights Activity

The following table summarizes SARs activity as of June 30, 2014 and for the six months then ended:


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

Outstanding at January 1, 2014		963	$	-
Granted		246	$	-
Exercised		(70)	$	-
Forfeited or expired		(155)	$	-

Outstanding at June 30, 2014		984	$	-		7.4	$	3,703

Vested or expected to vest at June 30, 2014		984	$	-		7.4	$	3,703

Exercisable at June 30, 2014		573	$	-		6.2	$	1,945

Weighted Average Grant Date of SARs Granted and Total Intrinsic Value of SARs Exercised

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


	Six Months Ended June 30,
	2014		2013
Number of SARs granted		246		318
Weighted average grant-date fair value per SAR	$	7.20	$	6.08
Intrinsic value of SARs exercised	$	333	$	-
Fair value of SARs vested	$	1,553	$	1,298

Summary of Nonvested Stock Appreciation Rights

The following table summarizes nonvested SARs activity as of June 30, 2014 and for the six months then ended:


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

Nonvested at January 1, 2014		535	$	6.17
Granted		246	$	7.20
Vested		(246)	$	6.31
Forfeited or expired		(124)	$	6.48

Nonvested at June 30, 2014		411	$	6.61

Summary of Nonvested Restricted Shares and Restricted Stock Units

The following table summarizes nonvested restricted shares/RSUs activity as of June 30, 2014 and for the six months then ended:


Nonvested Restricted Shares and RSUs	Shares (000s)		Weighted Average Grant- Date Fair Value

Nonvested at January 1, 2014		1,367	$	15.96
Granted		500	$	19.77
Vested		(57)	$	15.67
Forfeited or expired		(601)	$	17.47

Nonvested at June 30, 2014		1,209	$	16.80

Summary of Weighted Average Grant-Date Fair Value Granted and Total Fair Value of Restricted Shares and Restricted Stock Units Vested

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


	Six Months Ended June 30,
	2014		2013
Number of restricted shares/RSUs granted		500		706
Weighted average grant-date fair value per restricted share/RSU	$	19.77	$	15.25
Fair value of restricted shares/RSUs vested	$	895	$	366

Summary of Nonvested Common Stock Units and Share Awards

The following table summarizes nonvested common stock share award activity as of June 30, 2014 and for the six months then ended:


Nonvested Common Stock Share Awards	Shares (000s)		Weighted Average Grant- Date Fair Value

Nonvested at January 1, 2014		9	$	16.01
Granted		36	$	20.15
Vested		(17)	$	17.89
Forfeited or expired		-	$	-

Nonvested at June 30, 2014		28	$	20.16

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

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


	Six Months Ended June 30,
	2014		2013
Number of share awards granted		36		37
Weighted average grant-date fair value per share award	$	20.15	$	16.01
Fair value of share awards vested	$	310	$	369

Summary of Nonvested Common Stock

The following table summarizes nonvested common stock activity as of June 30, 2014 and for the six months then ended:


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

Nonvested at January 1, 2014		6	$	16.89
Granted		8	$	20.43
Vested		(7)	$	20.16
Forfeited or expired		(1)	$	17.08

Nonvested at June 30, 2014		6	$	17.46

Summary of Weighted Average Grant-Date Fair Value of Common Stock Awarded and Cash Used to Settle Company's Obligation under Deferred Compensation

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


	Six Months Ended June 30,
	2014		2013
Number of shares of common stock granted		8		10
Weighted average grant-date fair value per common stock	$	20.43	$	15.89
Fair value of common stock vested	$	146	$	147
Cash used to settle the obligation	$	21	$	1,014

Segments and Geographic Information (Tables)

Company's Reportable Segments

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


	Americas		EMEA		Other ⁽¹⁾		Consolidated
Three Months Ended June 30, 2014:
Revenues	$	256,663	$	63,835			$	320,498
Percentage of revenues		80.1%		19.9%				100.0%

Depreciation, net ⁽²⁾	$	10,107	$	1,215			$	11,322
Amortization of intangibles	$	3,659	$	-			$	3,659

Income (loss) from operations	$	21,135	$	1,561	$	(12,269)	$	10,427
Other income (expense), net						(714)		(714)
Income taxes						(1,376)		(1,376)

Net income							$	8,337


Total assets as of June 30, 2014	$	1,093,003	$	1,444,643	$	(1,591,697)	$	945,949


Three Months Ended June 30, 2013:
Revenues	$	255,163	$	49,572			$	304,735
Percentage of revenues		83.7%		16.3%				100.0%
Depreciation, net ⁽²⁾	$	9,079	$	938			$	10,017
Amortization of intangibles	$	3,713	$	-			$	3,713

Income (loss) from operations	$	19,221	$	(1,924)	$	(11,680)	$	5,617
Other income (expense), net						(709)		(709)
Income taxes						688		688

Net income							$	5,596


Total assets as of June 30, 2013	$	1,107,110	$	1,363,615	$	(1,545,165)	$	925,560


	Americas		EMEA		Other ⁽¹⁾		Consolidated
Six Months Ended June 30, 2014:
Revenues	$	517,909	$	127,018			$	644,927
Percentage of revenues		80.3%		19.7%				100.0%

Depreciation, net ⁽²⁾	$	20,248	$	2,372			$	22,620
Amortization of intangibles	$	7,310	$	-			$	7,310

Income (loss) from operations	$	43,782	$	4,445	$	(23,322)	$	24,905
Other income (expense), net						(319)		(319)
Income taxes						(5,936)		(5,936)

Net income							$	18,650


Six Months Ended June 30, 2013:
Revenues	$	510,377	$	95,602			$	605,979
Percentage of revenues		84.2%		15.8%				100.0%

Depreciation, net ⁽²⁾	$	18,257	$	1,929			$	20,186
Amortization of intangibles	$	7,472	$	-			$	7,472

Income (loss) from operations	$	38,743	$	(69)	$	(23,180)	$	15,494
Other income (expense), net						(868)		(868)
Income taxes						(2,512)		(2,512)

Net income							$	12,114

⁽¹⁾

Other items (including corporate 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 three and six months ended June 30, 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 revenue and income (loss) from operations, and does not include segment assets or other income and expense items for management reporting purposes.

⁽²⁾

Depreciation is net of property grant amortization.

Other Income (Expense) (Tables)

Schedule of Other Income (Expense)

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Foreign currency transaction gains (losses)	$	759		$	(2,968	)	$	631		$	(2,734	)
Gains (losses) on foreign currency derivative instruments not designated as hedges		(1,331	)		2,755			(608	)		2,230
Other miscellaneous income (expense)		173			(126	)		241			290

	$	(399	)	$	(339	)	$	264		$	(214	)

Overview and Basis of Presentation - Additional Information (Detail) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Segment

Dec. 31, 2013

Organization Consolidation And Presentation Of Financial Statements [Line Items]

Number of reportable segments

2

Unrecognized tax benefits

$ 15.0

Deferred Charges and Other Assets [Member]

Organization Consolidation And Presentation Of Financial Statements [Line Items]

Unrecognized tax benefits

4.0

Reclassification from Long-term income tax liabilities upon adoption of ASU 2013-11 [Member] |
Deferred Charges and Other Assets [Member]

Organization Consolidation And Presentation Of Financial Statements [Line Items]

Unrecognized tax benefits

$ 3.1

Costs Associated with Exit or Disposal Activities - Additional Information (Detail) (USD $)

In Millions, unless otherwise specified

6 Months Ended

12 Months Ended

Jun. 30, 2014

Employees

Seat

Dec. 31, 2011

Dec. 31, 2013

Americas [Member] |
Fourth Quarter 2011 Exit Plan [Member]

Restructuring Cost and Reserve [Line Items]

Estimated seat rationalization associated with exit or disposal activities

900

Estimated employee rationalization associated with exit or disposal activities

300

Estimated total costs, some of which may have already been incurred, under the restructuring plan

$ 1.9

Impairment of long-lived assets

0.5

Estimated facility-related, program transfer, severance-related and other costs

1.4

Cash payment related to restructuring plan

0.9

Lease termination date

Feb. 28, 2017

Americas [Member] |
Third Quarter 2010 Exit Plan [Member]

Restructuring Cost and Reserve [Line Items]

Estimated total costs, some of which may have already been incurred, under the restructuring plan

10.5

Impairment of long-lived assets

3.8

Cash payment related to restructuring plan

5.2

Lease termination date

Feb. 28, 2017

Estimated facility-related and program transfer costs

6.7

Number of closed customer contact management centers

4

EMEA [Member] |
Fourth Quarter 2011 Exit Plan [Member]

Restructuring Cost and Reserve [Line Items]

Estimated seat rationalization associated with exit or disposal activities

900

Estimated employee rationalization associated with exit or disposal activities

500

Estimated total costs, some of which may have already been incurred, under the restructuring plan

6.7

Impairment of long-lived assets

0.5

Estimated facility-related, program transfer, severance-related and other costs

6.2

Cash payment related to restructuring plan

5.9

Lease termination date

Mar. 31, 2013

Estimated revenue migrated associated with exit or disposal activities

3.2

Estimated revenue not migrated associated with exit or disposal activities

18.8

EMEA [Member] |
Fourth Quarter 2010 Exit Plan [Member]

Restructuring Cost and Reserve [Line Items]

Estimated total costs, some of which may have already been incurred, under the restructuring plan

2.3

2.5

Impairment of long-lived assets

0.2

Cash payment related to restructuring plan

2.0

Lease termination date

Mar. 31, 2014

Estimated facility-related and program transfer costs

1.9

Estimated severance-related costs

$ 0.2

Costs Associated with Exit or Disposal Activities - Summary of Accrued Liability Associated with Company's Exit Plans (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Fourth Quarter 2011 Exit Plan [Member]

Americas [Member]

Dec. 31, 2013

Fourth Quarter 2011 Exit Plan [Member]

Americas [Member]

Jun. 30, 2014

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Jun. 30, 2013

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Jun. 30, 2013

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Dec. 31, 2013

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Dec. 31, 2013

Fourth Quarter 2010 Exit Plan [Member]

Jun. 30, 2014

Third Quarter 2010 Exit Plan [Member]

Dec. 31, 2013

Third Quarter 2010 Exit Plan [Member]

Jun. 30, 2014

Lease Obligations and Facility Exit Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

Americas [Member]

Jun. 30, 2013

Lease Obligations and Facility Exit Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

Americas [Member]

Jun. 30, 2014

Lease Obligations and Facility Exit Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

Americas [Member]

Jun. 30, 2013

Lease Obligations and Facility Exit Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

Americas [Member]

Jun. 30, 2014

Lease Obligations and Facility Exit Costs [Member]

Fourth Quarter 2010 Exit Plan [Member]

EMEA [Member]

Jun. 30, 2013

Lease Obligations and Facility Exit Costs [Member]

Fourth Quarter 2010 Exit Plan [Member]

EMEA [Member]

Jun. 30, 2014

Lease Obligations and Facility Exit Costs [Member]

Fourth Quarter 2010 Exit Plan [Member]

EMEA [Member]

Jun. 30, 2013

Lease Obligations and Facility Exit Costs [Member]

Fourth Quarter 2010 Exit Plan [Member]

EMEA [Member]

Jun. 30, 2014

Lease Obligations and Facility Exit Costs [Member]

Third Quarter 2010 Exit Plan [Member]

Americas [Member]

Jun. 30, 2013

Lease Obligations and Facility Exit Costs [Member]

Third Quarter 2010 Exit Plan [Member]

Americas [Member]

Jun. 30, 2014

Lease Obligations and Facility Exit Costs [Member]

Third Quarter 2010 Exit Plan [Member]

Americas [Member]

Jun. 30, 2013

Lease Obligations and Facility Exit Costs [Member]

Third Quarter 2010 Exit Plan [Member]

Americas [Member]

Jun. 30, 2014

Severance and Related Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Jun. 30, 2013

Severance and Related Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Jun. 30, 2013

Severance and Related Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Dec. 31, 2013

Severance and Related Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Jun. 30, 2013

Legal-Related Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Jun. 30, 2013

Legal-Related Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Jun. 30, 2014

Legal-Related Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Mar. 31, 2014

Legal-Related Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Dec. 31, 2013

Legal-Related Costs [Member]

Fourth Quarter 2011 Exit Plan [Member]

EMEA [Member]

Restructuring Cost and Reserve [Line Items]

Beginning balance

$ 2,111

$ 2,974

$ 428

$ 512

$ 132

$ 187

$ 197

$ 131

$ 538

$ 1,552

$ 1,793

$ 469

$ 647

$ 512

$ 682

$ 433

$ 449

$ 538

$ 539

$ 1,697

$ 2,328

$ 1,793

$ 2,551

$ 132

$ 182

$ 187

$ 131

$ 5

$ 10

$ 0

Short-term accrued restructuring liability

776

1,245

138

136

131

538

507

440

Charges (Reversal) of exit or disposal activities and related charges

3

10

(185)

6

3

4

Long-term accrued restructuring liability

1,335

1,729

290

376

1,045

1,353

Cash Payments

(3)

(17)

(41)

(84)

(76)

(242)

(100)

(348)

(180)

(145)

(163)

(241)

(385)

(7)

(3)

(10)

Other Non-Cash Changes

(1)

2

(1)

(6)

7

(5)

(3)

(1)

2

(2)

1

Ending balance

$ 2,111

$ 2,974

$ 428

$ 512

$ 131

$ 189

$ 131

$ 538

$ 1,552

$ 1,793

$ 428

$ 606

$ 428

$ 606

$ 0

$ 356

$ 0

$ 356

$ 1,552

$ 2,165

$ 1,552

$ 2,165

$ 131

$ 184

$ 131

$ 5

$ 0

Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

Assets:

Total assets

$ 90,202

$ 59,379

Liabilities:

Long-term debt

79,000

98,000

Total liabilities

84,295

103,063

Money Market Funds and Open-End Mutual Funds [Member]

Assets:

Money market funds and open-end mutual funds included in "Cash and cash equivalents"

81,145

50,627

Money market funds and open-end mutual funds in "Deferred charges and other assets"

11

Foreign Currency Forward and Option Contracts Included in Other Current Assets [Member]

Assets:

Foreign currency forward and option contracts

1,562

2,240

Equity Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member]

Assets:

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

6,015

5,251

Debt Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member]

Assets:

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

1,390

1,170

Guaranteed Investment Certificates [Member]

Assets:

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

79

80

Foreign Currency Forward and Option Contracts Included in Other Accrued Expenses and Current Liabilities [Member]

Liabilities:

Foreign currency forward and option contracts

5,295

5,063

Quoted Prices in Active Markets For Identical Assets Level 1[Member]

Assets:

Total assets

88,561

57,059

Quoted Prices in Active Markets For Identical Assets Level 1[Member] |
Money Market Funds and Open-End Mutual Funds [Member]

Assets:

Money market funds and open-end mutual funds included in "Cash and cash equivalents"

81,145

50,627

Money market funds and open-end mutual funds in "Deferred charges and other assets"

11

Quoted Prices in Active Markets For Identical Assets Level 1[Member] |
Equity Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member]

Assets:

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

6,015

5,251

Quoted Prices in Active Markets For Identical Assets Level 1[Member] |
Debt Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member]

Assets:

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

1,390

1,170

Significant Other Observable Inputs Level 2 [Member]

Assets:

Total assets

1,641

2,320

Liabilities:

Long-term debt

79,000

98,000

Total liabilities

84,295

103,063

Significant Other Observable Inputs Level 2 [Member] |
Foreign Currency Forward and Option Contracts Included in Other Current Assets [Member]

Assets:

Foreign currency forward and option contracts

1,562

2,240

Significant Other Observable Inputs Level 2 [Member] |
Guaranteed Investment Certificates [Member]

Assets:

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

79

80

Significant Other Observable Inputs Level 2 [Member] |
Foreign Currency Forward and Option Contracts Included in Other Accrued Expenses and Current Liabilities [Member]

Liabilities:

Foreign currency forward and option contracts

$ 5,295

$ 5,063

Intangible Assets - Company's Purchased Intangible Assets (Detail) (USD $)

In Thousands, unless otherwise specified

6 Months Ended

12 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Acquired Finite-Lived Intangible Assets [Line Items]

Gross Intangibles

$ 116,889

$ 116,893

Accumulated Amortization

(48,182)

(40,838)

Net Intangibles

68,707

76,055

Weighted Average Amortization Period (years)

8 years

Customer Relationships [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Gross Intangibles

102,771

102,774

Accumulated Amortization

(42,273)

(35,873)

Net Intangibles

60,498

66,901

Weighted Average Amortization Period (years)

8 years

Trade Name [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Gross Intangibles

11,600

Accumulated Amortization

(3,466)

(2,803)

Net Intangibles

8,134

8,797

Weighted Average Amortization Period (years)

8 years

Non-Compete Agreements [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Gross Intangibles

1,219

1,220

Accumulated Amortization

(1,174)

(1,009)

Net Intangibles

45

211

Weighted Average Amortization Period (years)

2 years

Proprietary Software [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Gross Intangibles

850

Accumulated Amortization

(850)

(847)

Net Intangibles

3

Weighted Average Amortization Period (years)

2 years

Favorable Lease Agreement [Member]

Acquired Finite-Lived Intangible Assets [Line Items]

Gross Intangibles

449

Accumulated Amortization

(419)

(306)

Net Intangibles

$ 30

$ 143

Weighted Average Amortization Period (years)

2 years

Intangible Assets - Estimated Future Amortization Expense (Detail) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2014

Finite Lived Intangible Assets Future Amortization Expense [Abstract]

2014 (remaining six months)

$ 7,187

2015

14,140

2016

14,140

2017

14,140

2018

7,639

2019

7,019

2020 and thereafter

$ 4,442

Financial Derivatives - Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges (Detail) (USD $)

In Thousands, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Deferred gains (losses) in AOCI

$ (1,205)

$ (2,704)

Tax on deferred gains (losses) in AOCI

(43)

169

Deferred gains (losses) in AOCI, net of taxes

(1,248)

(2,535)

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

$ (1,205)

Financial Derivatives - Additional Information (Detail) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Jun. 30, 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

$ 1.6

Financial Derivatives - Outstanding Foreign Currency Forward Contracts and Options (Detail) (USD $)

In Thousands, unless otherwise specified

6 Months Ended

12 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Option Contracts [Member] |
Philippine Pesos [Member]

Derivative [Line Items]

Notional Amount

$ 69,500

$ 59,000

Settle Through Date

Jun. 30, 2015

Dec. 31, 2014

Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Forwards [Member] |
Philippine Pesos [Member]

Derivative [Line Items]

Notional Amount

2,500

63,300

Settle Through Date

Jul. 31, 2014

Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Forwards [Member] |
Costa Rican Colones [Member]

Derivative [Line Items]

Notional Amount

39,900

41,600

Settle Through Date

May 31, 2015

Oct. 31, 2014

Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Forwards [Member] |
Hungarian Forints [Member]

Derivative [Line Items]

Notional Amount

1,847

550

Settle Through Date

Dec. 31, 2014

Jan. 31, 2014

Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Forwards [Member] |
Romanian Leis [Member]

Derivative [Line Items]

Notional Amount

4,376

619

Settle Through Date

Dec. 31, 2014

Jan. 31, 2014

Derivatives Designated as Net Investment Hedging Instruments under ASC 815 [Member] |
Forwards [Member] |
Euros [Member]

Derivative [Line Items]

Notional Amount

51,028

32,657

Settle Through Date

Sep. 30, 2014

Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Forwards [Member]

Derivative [Line Items]

Notional Amount

$ 63,897

$ 59,207

Settle Through Date

Dec. 31, 2014

Jun. 30, 2014

Financial Derivatives - Derivative Instruments Fair Value (Detail) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

Derivatives, Fair Value [Line Items]

Derivative Assets

$ 1,562

$ 2,240

Derivative Liabilities

5,295

5,063

Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Current Assets [Member] |
Option Contracts [Member]

Derivatives, Fair Value [Line Items]

Derivative Assets

1,342

862

Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member] |
Option Contracts [Member]

Derivatives, Fair Value [Line Items]

Derivative Liabilities

1,867

2,997

Derivatives Designated as Net Investment Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Current Assets [Member]

Derivatives, Fair Value [Line Items]

Derivative Assets

154

Derivatives Designated as Net Investment Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member]

Derivatives, Fair Value [Line Items]

Derivative Liabilities

1,712

1,720

Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member]

Derivatives, Fair Value [Line Items]

Derivative Assets

1,496

862

Derivative Liabilities

3,579

4,717

Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Current Assets [Member]

Derivatives, Fair Value [Line Items]

Derivative Assets

66

1,378

Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member]

Derivatives, Fair Value [Line Items]

Derivative Liabilities

$ 1,716

$ 346

Financial Derivatives - Effect of Company's Derivative Instruments (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Derivative Instruments, Gain (Loss) [Line Items]

Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)

$ 2,583

$ (4,858)

$ (2,381)

$ (1,708)

Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)

(1,755)

68

(4,129)

799

Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion)

(1)

(37)

(4)

(25)

Derivatives Designated as Cash Flow Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Option Contracts [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)

2,475

(4,461)

(2,543)

(1,744)

Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)

(1,755)

68

(4,129)

799

Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion)

(1)

(37)

(4)

(25)

Derivatives Designated as Net Investment Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)

108

(397)

162

36

Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Gain (Loss) Recognized in "Other income and (expense)" on Derivatives

$ (1,331)

$ 2,755

$ (608)

$ 2,230

Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) (Mutual Funds [Member], USD $)

In Thousands, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

Mutual Funds [Member]

Schedule of Trading Securities and Other Trading Assets [Line Items]

Mutual funds, Cost

$ 5,435

$ 4,749

Mutual funds, Fair Value

$ 7,405

$ 6,421

Investments Held in Rabbi Trust - Additional Information (Detail)

Jun. 30, 2014

Equity-Based Securities [Member]

Schedule of Trading Securities and Other Trading Assets [Line Items]

Mutual funds held in rabbi trust

81.00%

Debt-Based Securities [Member]

Schedule of Trading Securities and Other Trading Assets [Line Items]

Mutual funds held in rabbi trust

19.00%

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

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Investments Debt And Equity Securities [Abstract]

Gross realized gains from sale of trading securities

$ 16

$ 3

$ 112

Gross realized (losses) from sale of trading securities

(5)

(8)

Dividend and interest income

9

8

18

Net unrealized holding gains (losses)

204

1

279

196

Net investment income (losses)

$ 213

$ 20

$ 300

$ 318

Deferred Revenue - Components of Deferred Revenue (Detail) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

Deferred Revenue Disclosure [Abstract]

Future service

$ 26,133

$ 25,102

Estimated potential penalties and holdbacks

9,663

9,923

Deferred revenue

$ 35,796

$ 35,025

Deferred Grants - Schedule of Deferred Grants, Net of Accumulated Amortization (Detail) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

Deferred Grants [Abstract]

Property grants

$ 5,867

$ 6,643

Employment grants

180

146

Total deferred grants

6,047

6,789

Less: Property grants - short-term

(6)

Less: Employment grants - short-term

(180)

(146)

Total long-term deferred grants

5,867

6,637

Total deferred grants

$ 6,047

$ 6,789

Borrowings - Additional Information (Detail) (USD $)

3 Months Ended

6 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

2012 Credit Agreement [Member]

Jun. 30, 2013

2012 Credit Agreement [Member]

Jun. 30, 2014

2012 Credit Agreement [Member]

Jun. 30, 2013

2012 Credit Agreement [Member]

May 31, 2012

2012 Credit Agreement [Member]

May 3, 2012

2012 Credit Agreement [Member]

Jun. 30, 2014

2012 Credit Agreement [Member]

Non-Voting Capital Stock Direct Foreign Subsidiaries [Member]

Jun. 30, 2014

2012 Credit Agreement [Member]

Voting Capital Stock Direct Foreign Subsidiaries [Member]

Feb. 2, 2010

2010 Credit Agreement [Member]

Jun. 30, 2014

Revolving Credit Facility [Member]

Dec. 31, 2013

Revolving Credit Facility [Member]

Aug. 20, 2012

Revolving Credit Facility [Member]

May 3, 2012

Alternate-Currency Sub-Facility [Member]

May 3, 2012

Swingline Sub-Facility [Member]

May 3, 2012

Letter of Credit Sub-Facility [Member]

Line of Credit Facility [Line Items]

Maximum borrowing capacity

$ 245,000,000

$ 75,000,000

$ 184,000,000

$ 10,000,000

$ 35,000,000

Proceeds from borrowings under credit agreement

108,000,000

Line of credit facility, expiration date

May 02, 2017

Varying installments due

0

Credit agreement interest rate description

Borrowings under the 2012 Credit Agreement will bear interest at the rates set forth in the Credit Agreement.

Credit agreement customary fees description

The Company is required to pay certain customary fees, including a commitment fee of 0.175%, which is due quarterly in arrears and calculated on the average unused amount of the 2012 Credit Agreement.

Commitment fee

0.175%

Percentage of capital stock pledged under credit agreement

100.00%

65.00%

Underwriting fee for credit agreement

900,000

Outstanding borrowings

79,000,000

98,000,000

79,000,000

98,000,000

Average daily utilization of borrowings

90,200,000

105,800,000

93,300,000

98,500,000

Interest expense, excluding amortization of deferred loan fees

$ 300,000

$ 400,000

$ 600,000

$ 700,000

Weighted average interest rate

1.30%

1.50%

1.30%

1.50%

Borrowings - Components of Borrowings (Detail) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

Line of Credit Facility [Line Items]

Total long-term debt

$ 79,000

$ 98,000

Revolving Credit Facility [Member]

Line of Credit Facility [Line Items]

Revolving credit facility

79,000

98,000

Less: Current portion

0

Total long-term debt

$ 79,000

$ 98,000

Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)

In Thousands, unless otherwise specified

6 Months Ended

12 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance, accumulated other comprehensive income (loss)

$ 7,997

$ 14,856

Pre-tax amount

(4,462)

(8,152)

Tax (provision) benefit

(158)

1,067

Reclassification of (gain) loss to net income

3,972

226

Foreign currency translation

0

Ending balance, accumulated other comprehensive income (loss)

7,349

7,997

Foreign Currency Translation Gain (Loss) [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance, accumulated other comprehensive income (loss)

12,751

16,083

Pre-tax amount

(2,144)

(3,465)

Foreign currency translation

65

133

Ending balance, accumulated other comprehensive income (loss)

10,672

12,751

Unrealized Gain (Loss) on Net Investment Hedge [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance, accumulated other comprehensive income (loss)

(3,683)

(2,565)

Pre-tax amount

162

(1,720)

Tax (provision) benefit

(57)

602

Ending balance, accumulated other comprehensive income (loss)

(3,578)

(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)

1,150

1,413

Pre-tax amount

26

(136)

Tax (provision) benefit

16

Reclassification of (gain) loss to net income

(25)

(41)

Foreign currency translation

20

(102)

Ending balance, accumulated other comprehensive income (loss)

1,171

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)

(2,535)

(570)

Pre-tax amount

(2,547)

(2,704)

Tax (provision) benefit

(101)

449

Reclassification of (gain) loss to net income

4,020

321

Foreign currency translation

(85)

(31)

Ending balance, accumulated other comprehensive income (loss)

(1,248)

(2,535)

Unrealized Gain (Loss) on Post Retirement Obligation [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Beginning balance, accumulated other comprehensive income (loss)

314

495

Pre-tax amount

41

(127)

Reclassification of (gain) loss to net income

(23)

(54)

Ending balance, accumulated other comprehensive income (loss)

$ 332

$ 314

Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Pre-tax amount

$ 9,713

$ 4,908

$ 24,586

$ 14,626

Tax (provision) benefit

(1,376)

688

(5,936)

(2,512)

Reclassification of gain (loss) to net income

8,337

5,596

18,650

12,114

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

(1,714)

118

(3,972)

821

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]

Reclassification of gain (loss) to net income

13

19

25

29

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

17

54

113

(12)

Reclassification of gain (loss) to net income

(1,739)

85

(4,020)

762

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

12

14

23

30

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

13

19

25

29

Reclassification out of Accumulated Other Comprehensive Income [Member] |
Revenues [Member] |
Gain (Loss) On Cash Flow Hedging Instruments [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Pre-tax amount

(1,756)

31

(4,133)

774

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

$ 12

$ 14

$ 23

$ 30

Income Taxes - Additional Information (Detail) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Income Tax [Line Items]

Effective rate of tax

14.20%

(14.00%)

24.10%

17.20%

Statutory federal income tax rate

35.00%

Unrecognized tax benefits

$ 15.0

Withholding taxes related to offshore cash movements

2.4

Amount of mandatory security deposit paid related to Notice of Objection

17.2

17.3

Deferred Charges and Other Assets [Member]

Income Tax [Line Items]

Unrecognized tax benefits

4.0

Long-Term Income Tax Liabilities [Member]

Income Tax [Line Items]

Unrecognized tax benefits

$ 11.0

$ 15.0

Income Taxes - Summary of Significant Tax Jurisdictions Currently under Audit (Detail)

6 Months Ended

Jun. 30, 2014

Canada [Member]

Income Tax Examination [Line Items]

Significant tax jurisdictions currently under audit

2003 to 2009

The Philippines [Member]

Income Tax Examination [Line Items]

Significant tax jurisdictions currently under audit

2009 and 2010

United States [Member]

Income Tax Examination [Line Items]

Significant tax jurisdictions currently under audit

2011 and 2012

Earnings Per Share - Numbers of Shares Used in Earnings Per Share Computation (Detail)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Basic:

Weighted average common shares outstanding

42,711

42,936

42,726

42,992

Diluted:

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

99

18

119

19

Total weighted average diluted shares outstanding

42,810

42,954

42,845

43,011

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

49

7

70

4

Earnings Per Share - Additional Information (Detail)

3 Months Ended

6 Months Ended

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

2011 Share Repurchase Program [Member]

Aug. 18, 2011

2011 Share Repurchase Program [Member]

Equity, Class of Treasury Stock [Line Items]

Maximum amount of shares authorized for repurchase

5,000,000

Total Number of Shares Repurchased

272,000

130,000

272,000

3,500,000

Earnings Per Share - Shares Repurchased (Detail) (USD $)

In Thousands, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Schedule Of Shares Repurchased [Line Items]

Total Number of Shares Repurchased

272

130

272

Total Cost of Shares Repurchased

$ 4,294

$ 2,605

$ 4,294

Minimum [Member]

Schedule Of Shares Repurchased [Line Items]

Range of Prices Paid Per Share

$ 15.61

$ 19.92

$ 15.61

Maximum [Member]

Schedule Of Shares Repurchased [Line Items]

Range of Prices Paid Per Share

$ 16.00

$ 19.98

$ 16.00

Commitments and Loss Contingency - Schedule of Future Minimum Rental Payments under Operating Leases (Detail) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2014

Operating Leases Future Minimum Payments Due [Abstract]

2014 (remaining six months)

$ 928

2015

3,630

2016

3,260

2017

2,501

2018

2,330

2019

1,969

2020 and thereafter

4,907

Total minimum payments required

$ 19,525

Commitments and Loss Contingency - Additional Information (Detail)

6 Months Ended

Jun. 30, 2014

Minimum [Member]

Long-term Purchase Commitment [Line Items]

Term of agreements with third party vendors

One year

Maximum [Member]

Long-term Purchase Commitment [Line Items]

Term of agreements with third party vendors

Five years

Commitments and Loss Contingency - Schedule of Future Minimum Purchases Remaining under Agreements (Detail) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2014

Unrecorded Unconditional Purchase Obligation [Abstract]

2014 (remaining six months)

$ 7,850

2015

12,014

2016

10,391

2017

4,345

2018

2019

2020 and thereafter

Total minimum payments required

$ 34,600

Defined Benefit Pension Plan and Postretirement Benefits - Net Periodic Benefit Cost for Pension Plans (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Defined Benefit Plan Accumulated Other Comprehensive Income Before Tax [Abstract]

Service cost

$ 101

$ 87

$ 201

$ 175

Interest cost

31

29

61

58

Recognized actuarial (gains)

(13)

(14)

(25)

(29)

Net periodic benefit cost

$ 119

$ 102

$ 237

$ 204

Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail)

3 Months Ended

Jun. 30, 2014

Pension Plans, Postretirement and Other Employee Benefits [Line Items]

Percentage of employer's contribution based on participants contribution

50.00%

Maximum [Member]

Pension Plans, Postretirement and Other Employee Benefits [Line Items]

Percentage of employer's contribution based on participants compensation

2.00%

Defined Benefit Pension Plan and Postretirement Benefits - Company's Contributions to Employee Retirement Savings Plans (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Compensation And Retirement Disclosure [Abstract]

401(k) plan contributions

$ 221

$ 245

$ 480

$ 478

Defined Benefit Pension Plan and Postretirement Benefits - Post-Retirement Benefit Obligation and Unrealized Gain (Losses) (Detail) (Split-Dollar Life Insurance Arrangement [Member], USD $)

In Thousands, unless otherwise specified

Jun. 30, 2014

Dec. 31, 2013

Split-Dollar Life Insurance Arrangement [Member]

Defined Benefit Plan Disclosure [Line Items]

Postretirement benefit obligation

$ 62

$ 81

Unrealized gains (losses) in AOCI

$ 332

$ 314

Stock-Based Compensation - Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

General and Administrative [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation (expense)

$ (937)

$ (1,526)

$ (1,691)

$ (2,190)

Income Taxes [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Income tax benefit

328

535

592

767

Additional Paid-in Capital [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Excess tax benefit (deficiency) from stock-based compensation

$ (84)

$ (30)

$ (34)

Stock-Based Compensation - Additional Information (Detail) (USD $)

Share data in Millions, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Deferred Compensation Plan [Member]

Jun. 30, 2014

2011 Equity Incentive Plan [Member]

Jun. 30, 2014

2001 Equity Incentive Plan [Member]

Jun. 30, 2014

Stock Appreciation Rights (SARs) [Member]

Jun. 30, 2014

Restricted Shares [Member]

Restricted Stock Units [Member]

Jun. 30, 2014

Restricted Shares [Member]

Restricted Stock Units [Member]

Minimum [Member]

Jun. 30, 2014

Restricted Shares [Member]

Restricted Stock Units [Member]

Maximum [Member]

Jun. 30, 2014

Deferred Compensation Plan [Member]

Dec. 31, 2013

Deferred Compensation Plan [Member]

Jun. 30, 2014

Deferred Compensation Plan [Member]

President, Executive Vice Presidents and Senior Vice Presidents [Member]

Jun. 30, 2014

Deferred Compensation Plan [Member]

Vice President [Member]

Jun. 30, 2014

Nonvested Common Stock Share Awards under 2004 Non-Employee Director Fee Plan [Member]

May 20, 2011

Nonvested Common Stock Share Awards under 2004 Non-Employee Director Fee Plan [Member]

Jun. 30, 2014

May 17, 2012 Nonvested Common Stock Share Awards under 2004 Non-Employee Director Fee Plan [Member]

Jun. 30, 2014

May 20, 2011 Nonvested Common Stock Share Awards under 2004 Non-Employee Director Fee Plan [Member]

Jun. 30, 2014

Nonvested Common Stock Share Awards [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Capitalized stock-based compensation costs

$ 0

Number of shares of common stock available under the 2011 Plan

4.0

2001 equity incentive plan

Mar. 14, 2011

Share-based compensation plan expiration

10 years

Share-based compensation vesting period

One-third on each of the first three anniversaries of the date of grant

Weighted average period

2 years 4 months 24 days

1 year 6 months

1 year 10 months 24 days

8 months 12 days

Total unrecognized compensation cost

100,000

2,400,000

17,800,000

500,000

Range of vesting possibilities

0.00%

100.00%

Value of initial granted shares of common stock to new non employee director

60,000

Vesting period of initial granted shares of common stock to new non employee director

Twelve equal quarterly installments, one-twelfth on the date of grant and an additional one-twelfth on each successive third monthly anniversary of the date of grant

Value of Annual Retainer to New Non-Employee Director

125,000

95,000

Annual Retainer payable in cash to New Non Employee Director

50,000

Amended vesting period of cash Annual retainer to non-employee chairman and committee members

Vested in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant

Vesting period of annual granted shares of common stock to non-employee director

Vests in eight equal quarterly installments, one-eighth on the day following the annual meeting of shareholders, and an additional one-eighth on each successive third monthly anniversary of the date of grant

Increased stock component of annual retainer

30,000

Vesting period for the annual equity award

1 year

2 years

Amended vesting period of annual granted shares of common stock to non-employee director

Four equal quarterly installments, one-fourth on the date of grant and an additional one-fourth on each successive third monthly anniversary of the date of grant

Additional annual cash award to be given to any non employee chairman of board

100,000

Additional annual cash award to be given to Chairperson of the audit committee

20,000

Additional annual cash award to be given to audit committee members

10,000

Annual cash awards for the Chairpersons of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee

12,500

Annual cash awards for the members of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee

7,500

Increased additional annual cash award to Chairperson of Compensation Committee

15,000

Percentage of contribution in respect of amounts deferred by certain senior management participants

50.00%

Amounts deferred by certain senior management personnel

12,000

7,500

Vesting period of matching contributions and associated earnings

Over a seven year service period

Accrued employee compensation and benefits

7,400,000

6,400,000

Common stock match associated with the deferred compensation plan carrying value

$ 1,800,000

$ 1,600,000

Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value (Detail) (Stock Appreciation Rights (SARs) [Member])

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Stock Appreciation Rights (SARs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expected volatility

38.90%

45.20%

Weighted-average volatility

38.90%

45.20%

Expected dividend rate

0.00%

Expected term (in years)

5 years

Risk-free rate

1.70%

0.80%

Stock-Based Compensation - Summary of Stock Appreciation Rights Activity (Detail) (Stock Appreciation Rights (SARs) [Member], USD $)

In Thousands, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Stock Appreciation Rights (SARs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonvested Shares, beginning balance

963

Granted, Shares

246

318

Exercised, Shares

(70)

Forfeited or expired, Shares

(155)

Nonvested Shares, ending balance

984

Vested or expected to vest, Shares

984

Exercisable, Shares

573

Nonvested, Weighted Average Exercise Price, beginning balance

Granted, Weighted Average Exercise Price

Exercised, Weighted Average Exercise Price

Forfeited or expired, Weighted Average Exercised Price

Nonvested, Weighted Average Exercise price, ending balance

Vested or expected to vest, Weighted Average Exercise Price

Exercisable, Weighted Average Exercise Price

Nonvested, Weighted Average Remaining Contractual Term

7 years 4 months 24 days

Vested or expected to vest, Weighted Average Remaining Contractual Term

7 years 4 months 24 days

Exercisable, Weighted Average Remaining Contractual Term

6 years 2 months 12 days

Outstanding, Aggregate Intrinsic Value

$ 3,703

Vested or expected to vest, Aggregate Intrinsic Value

3,703

Exercisable, Aggregate Intrinsic Value

$ 1,945

Stock-Based Compensation - Weighted Average Grant Date of SARs Granted and Total Intrinsic Value of SARs Exercised (Detail) (Stock Appreciation Rights (SARs) [Member], USD $)

In Thousands, except Per Share data, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Stock Appreciation Rights (SARs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Granted, Shares

246

318

Weighted average grant-date fair value per SAR

$ 7.20

$ 6.08

Intrinsic value of SARs exercised

$ 333

Fair value of vested

$ 1,553

$ 1,298

Stock-Based Compensation - Summary of Nonvested Stock Appreciation Rights (Detail) (Nonvested Stock Appreciation Rights (SARs) [Member], USD $)

In Thousands, except Per Share data, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Nonvested Stock Appreciation Rights (SARs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonvested Shares, beginning balance

535

Granted, Shares

246

Vested, Shares

(246)

Forfeited or expired, Shares

(124)

Nonvested Shares, ending balance

411

Nonvested, Weighted Average Grant-Date Fair Value, beginning balance

$ 6.17

Granted, Weighted Average Grant-Date Fair Value

$ 7.20

Vested, Weighted Average Grant-Date Fair Value

$ 6.31

Forfeited or expired, Weighted Average Grant-Date Fair Value

$ 6.48

Nonvested, Weighted Average Grant-Date Fair Value, ending balance

$ 6.61

Stock-Based Compensation - Summary of Nonvested Restricted Shares and Restricted Stock Units (Detail) (Restricted Shares [Member], Restricted Stock Units [Member], USD $)

In Thousands, except Per Share data, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Restricted Shares [Member] |
Restricted Stock Units [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonvested Shares, beginning balance

1,367

Granted, Shares

500

706

Vested, Shares

(57)

Forfeited or expired, Shares

(601)

Nonvested Shares, ending balance

1,209

Nonvested, Weighted Average Grant-Date Fair Value, beginning balance

$ 15.96

Granted, Weighted Average Grant-Date Fair Value

$ 19.77

$ 15.25

Vested, Weighted Average Grant-Date Fair Value

$ 15.67

Forfeited or expired, Weighted Average Grant-Date Fair Value

$ 17.47

Nonvested, Weighted Average Grant-Date Fair Value, ending balance

$ 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 [Member], Restricted Stock Units [Member], USD $)

In Thousands, except Per Share data, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Restricted Shares [Member] |
Restricted Stock Units [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Granted, Shares

500

706

Weighted average grant-date fair value

$ 19.77

$ 15.25

Fair value of vested

$ 895

$ 366

Stock-Based Compensation - Summary of Nonvested Common Stock Units and Share Awards (Detail) (Nonvested Common Stock Share Awards [Member], USD $)

In Thousands, except Per Share data, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Nonvested Common Stock Share Awards [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonvested Shares, beginning balance

9

Granted, Shares

36

37

Vested, Shares

(17)

Forfeited or expired, Shares

Nonvested Shares, ending balance

28

Nonvested, Weighted Average Grant-Date Fair Value, beginning balance

$ 16.01

Granted, Weighted Average Grant-Date Fair Value

$ 20.15

$ 16.01

Vested, Weighted Average Grant-Date Fair Value

$ 17.89

Forfeited or expired, Weighted Average Grant-Date Fair Value

Nonvested, Weighted Average Grant-Date Fair Value, ending balance

$ 20.16

Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Total Fair Value of Common Stock Units and Share Awards Vested (Detail) (Nonvested Common Stock Share Awards [Member], USD $)

In Thousands, except Per Share data, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Nonvested Common Stock Share Awards [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Granted, Shares

36

37

Weighted average grant-date fair value

$ 20.15

$ 16.01

Fair value of vested

$ 310

$ 369

Stock-Based Compensation - Summary of Nonvested Common Stock (Detail) (Common Stock [Member], USD $)

In Thousands, except Per Share data, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Common Stock [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonvested Shares, beginning balance

6

Granted, Shares

8

10

Vested, Shares

(7)

Forfeited or expired, Shares

(1)

Nonvested Shares, ending balance

6

Nonvested, Weighted Average Grant-Date Fair Value, beginning balance

$ 16.89

Granted, Weighted Average Grant-Date Fair Value

$ 20.43

$ 15.89

Vested, Weighted Average Grant-Date Fair Value

$ 20.16

Forfeited or expired, Weighted Average Grant-Date Fair Value

$ 17.08

Nonvested, Weighted Average Grant-Date Fair Value, ending balance

$ 17.46

Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Awarded and Cash Used to Settle Company's Obligation under Deferred Compensation (Detail) (Common Stock [Member], USD $)

In Thousands, except Per Share data, unless otherwise specified

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Common Stock [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Granted, Shares

8

10

Weighted average grant-date fair value

$ 20.43

$ 15.89

Fair value of vested

$ 146

$ 147

Cash used to settle the obligation

$ 21

$ 1,014

Segments and Geographic Information - Additional Information (Detail)

6 Months Ended

Jun. 30, 2014

Segment

Region

Segment Reporting [Abstract]

Number of operating regions

2

Number of reportable segments

2

Segments and Geographic Information - Company's Reportable Segments (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Segment Reporting Information [Line Items]

Revenues

$ 320,498

$ 304,735

$ 644,927

$ 605,979

Percentage of revenues

100.00%

Depreciation, net

11,322

10,017

22,620

20,186

Amortization of intangibles

3,659

3,713

7,310

7,472

Income (loss) from operations

10,427

5,617

24,905

15,494

Other income (expense), net

(714)

(709)

(319)

(868)

Income taxes

(1,376)

688

(5,936)

(2,512)

Net income

8,337

5,596

18,650

12,114

Total assets

945,949

925,560

945,949

925,560

950,261

Operating Segments [Member] |
Americas [Member]

Segment Reporting Information [Line Items]

Revenues

256,663

255,163

517,909

510,377

Percentage of revenues

80.10%

83.70%

80.30%

84.20%

Depreciation, net

10,107

9,079

20,248

18,257

Amortization of intangibles

3,659

3,713

7,310

7,472

Income (loss) from operations

21,135

19,221

43,782

38,743

Total assets

1,093,003

1,107,110

1,093,003

1,107,110

Operating Segments [Member] |
EMEA [Member]

Segment Reporting Information [Line Items]

Revenues

63,835

49,572

127,018

95,602

Percentage of revenues

19.90%

16.30%

19.70%

15.80%

Depreciation, net

1,215

938

2,372

1,929

Income (loss) from operations

1,561

(1,924)

4,445

(69)

Total assets

1,444,643

1,363,615

1,444,643

1,363,615

Other [Member]

Segment Reporting Information [Line Items]

Income (loss) from operations

(12,269)

(11,680)

(23,322)

(23,180)

Other income (expense), net

(714)

(709)

(319)

(868)

Income taxes

(1,376)

688

(5,936)

(2,512)

Total assets

$ (1,591,697)

$ (1,545,165)

$ (1,591,697)

$ (1,545,165)

Other Income (Expense) - Schedule of Other Income (Expense) (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Other Nonoperating Income Expense [Abstract]

Foreign currency transaction gains (losses)

$ 759

$ (2,968)

$ 631

$ (2,734)

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

(1,331)

2,755

(608)

2,230

Other miscellaneous income (expense)

173

(126)

241

290

Other income (expense)

$ (399)

$ (339)

$ 264

$ (214)

Related Party Transactions - Additional Information (Detail) (USD $)

In Millions, unless otherwise specified

1 Months Ended

3 Months Ended

6 Months Ended

Jan. 31, 2008

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Related Party Transactions [Abstract]

Duration of lease

20 years

Payment to landlord under the lease terms

$ 0.1

$ 0.2