SYKES ENTERPRISES INC, 10-Q filed on 11/3/2015
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2015
Oct. 22, 2015
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Sep. 30, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q3 
 
Trading Symbol
SYKE 
 
Entity Registrant Name
SYKES ENTERPRISES INC 
 
Entity Central Index Key
0001010612 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
42,760,591 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 226,688 
$ 215,137 
Receivables, net
279,083 
290,397 
Prepaid expenses
15,302 
14,896 
Other current assets
33,710 
29,656 
Total current assets
554,783 
550,086 
Property and equipment, net
111,040 
109,880 
Goodwill, net
196,912 
193,831 
Intangibles, net
54,903 
60,620 
Deferred charges and other assets
26,977 
30,083 
Total assets
944,615 
944,500 
Current liabilities:
 
 
Accounts payable
23,148 
25,523 
Accrued employee compensation and benefits
84,452 
82,072 
Current deferred income tax liabilities
217 
144 
Income taxes payable
2,572 
3,662 
Deferred revenue
30,836 
34,245 
Other accrued expenses and current liabilities
24,305 
22,216 
Total current liabilities
165,530 
167,862 
Deferred grants
4,944 
5,110 
Long-term debt
70,000 
75,000 
Long-term income tax liabilities
18,989 
20,630 
Other long-term liabilities
22,394 
17,680 
Total liabilities
281,857 
286,282 
Commitments and loss contingency (Note 15)
   
   
Shareholders' equity:
 
 
Preferred stock, $0.01 par value per share, 10,000 shares authorized; no shares issued and outstanding
   
   
Common stock, $0.01 par value per share, 200,000 shares authorized; 42,761 and 43,291 shares issued, respectively
428 
433 
Additional paid-in capital
272,703 
279,288 
Retained earnings
438,289 
400,514 
Accumulated other comprehensive income (loss)
(47,040)
(20,561)
Treasury stock at cost: 139 and 132 shares, respectively
(1,622)
(1,456)
Total shareholders' equity
662,758 
658,218 
Total liabilities and shareholders' equity
$ 944,615 
$ 944,500 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]
 
 
Preferred stock, par value
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
10,000,000 
10,000,000 
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
200,000,000 
200,000,000 
Common stock, shares issued
42,761,000 
43,291,000 
Treasury stock, shares
139,000 
132,000 
Condensed Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Income Statement [Abstract]
 
 
 
 
Revenues
$ 317,924 
$ 332,671 
$ 949,062 
$ 977,598 
Operating expenses:
 
 
 
 
Direct salaries and related costs
206,139 
221,598 
622,209 
664,308 
General and administrative
72,702 
73,868 
218,080 
221,250 
Depreciation, net
10,938 
11,516 
33,004 
34,136 
Amortization of intangibles
3,638 
3,597 
10,504 
10,907 
Total operating expenses
293,417 
310,579 
883,797 
930,601 
Income from operations
24,507 
22,092 
65,265 
46,997 
Other income (expense):
 
 
 
 
Interest income
162 
249 
479 
717 
Interest (expense)
(478)
(464)
(1,527)
(1,515)
Other income (expense)
(871)
(406)
(1,867)
(142)
Total other income (expense)
(1,187)
(621)
(2,915)
(940)
Income before income taxes
23,320 
21,471 
62,350 
46,057 
Income taxes
3,310 
4,833 
13,789 
10,769 
Net income
$ 20,010 
$ 16,638 
$ 48,561 
$ 35,288 
Net income per common share:
 
 
 
 
Basic
$ 0.48 
$ 0.39 
$ 1.16 
$ 0.83 
Diluted
$ 0.48 
$ 0.39 
$ 1.15 
$ 0.82 
Weighted average common shares outstanding:
 
 
 
 
Basic
41,783 
42,704 
41,992 
42,721 
Diluted
42,084 
42,837 
42,337 
42,844 
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 20,010 
$ 16,638 
$ 48,561 
$ 35,288 
Other comprehensive income (loss), net of taxes:
 
 
 
 
Foreign currency translation gain (loss), net of taxes
(8,747)
(20,744)
(28,813)
(22,823)
Unrealized gain (loss) on net investment hedges, net of taxes
115 
2,600 
2,883 
2,705 
Unrealized actuarial gain (loss) related to pension liability, net of taxes
(45)
(47)
(73)
(26)
Unrealized gain (loss) on cash flow hedging instruments, net of taxes
(1,572)
(469)
(504)
818 
Unrealized gain (loss) on postretirement obligation, net of taxes
(16)
(2)
28 
16 
Other comprehensive income (loss), net of taxes
(10,265)
(18,662)
(26,479)
(19,310)
Comprehensive income (loss)
$ 9,745 
$ (2,024)
$ 22,082 
$ 15,978 
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, 2014
$ 658,218 
$ 433 
$ 279,288 
$ 400,514 
$ (20,561)
$ (1,456)
Beginning Balance, shares at Dec. 31, 2014
 
43,291 
 
 
 
 
Stock-based compensation expense
5,884 
 
5,884 
 
 
 
Excess tax benefit (deficiency) from stock-based compensation
209 
 
209 
 
 
 
Net vesting (forfeitures) of common stock and restricted stock under equity award plans
(2,920)
(2,758)
 
 
(166)
Net vesting (forfeitures) of common stock and restricted stock under equity award plans, shares
 
324 
 
 
 
 
Repurchase of common stock
(20,715)
 
 
 
 
(20,715)
Retirement of treasury stock
 
(9)
(9,920)
(10,786)
 
20,715 
Retirement of treasury stock, shares
 
(854)
 
 
 
 
Comprehensive income (loss)
22,082 
 
 
48,561 
(26,479)
 
Ending Balance at Sep. 30, 2015
662,758 
428 
272,703 
438,289 
(47,040)
(1,622)
Ending Balance, shares at Sep. 30, 2015
 
42,761 
 
 
 
 
Beginning Balance at Jul. 01, 2015
 
 
 
 
 
 
Excess tax benefit (deficiency) from stock-based compensation
 
 
40 
 
 
 
Repurchase of common stock
(8,746)
 
 
 
 
 
Comprehensive income (loss)
9,745 
 
 
 
 
 
Ending Balance at Sep. 30, 2015
$ 662,758 
 
$ 272,703 
 
 
 
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities:
 
 
Net income
$ 48,561 
$ 35,288 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation
33,593 
34,832 
Amortization of intangibles
10,504 
10,907 
Amortization of deferred grants
(700)
(1,082)
Unrealized foreign currency transaction (gains) losses, net
670 
(1,257)
Stock-based compensation expense
5,884 
4,429 
Excess tax (benefit) from stock-based compensation
(209)
 
Deferred income tax provision (benefit)
292 
2,224 
Net (gain) loss on disposal of property and equipment
160 
195 
Bad debt expense (reversals)
(74)
(490)
Unrealized (gains) losses on financial instruments, net
(813)
2,416 
Amortization of deferred loan fees
336 
194 
Net (gain) on insurance settlement
(919)
 
Proceeds from business interruption insurance settlement
156 
 
Other
(11)
(546)
Changes in assets and liabilities, net of acquisition:
 
 
Receivables
766 
(24,651)
Prepaid expenses
(907)
(2,276)
Other current assets
(4,972)
(7,291)
Deferred charges and other assets
1,754 
7,654 
Accounts payable
(982)
3,191 
Income taxes receivable / payable
(1,638)
(115)
Accrued employee compensation and benefits
5,102 
6,136 
Other accrued expenses and current liabilities
1,342 
(3,438)
Deferred revenue
(670)
2,931 
Other long-term liabilities
(2,312)
(2,561)
Net cash provided by operating activities
94,913 
66,690 
Cash flows from investing activities:
 
 
Capital expenditures
(36,316)
(35,669)
Cash paid for business acquisition, net of cash acquired
(9,370)
 
Proceeds from sale of property and equipment
117 
83 
Investment in restricted cash
(38)
(3)
Release of restricted cash
 
168 
Proceeds from property and equipment insurance settlement
1,490 
 
Net cash (used for) investing activities
(44,117)
(35,421)
Cash flows from financing activities:
 
 
Payments of long-term debt
(10,000)
(19,000)
Proceeds from issuance of long-term debt
5,000 
 
Excess tax benefit from stock-based compensation
209 
 
Cash paid for repurchase of common stock
(20,715)
(5,350)
Proceeds from grants
554 
181 
Payments of short-term debt
(323)
 
Shares repurchased for minimum tax withholding on equity awards
(2,920)
(421)
Cash paid for loan fees related to long-term debt
(962)
 
Net cash (used for) financing activities
(29,157)
(24,590)
Effects of exchange rates on cash and cash equivalents
(10,088)
(9,055)
Net increase (decrease) in cash and cash equivalents
11,551 
(2,376)
Cash and cash equivalents - beginning
215,137 
211,985 
Cash and cash equivalents - ending
226,688 
209,609 
Supplemental disclosures of cash flow information:
 
 
Cash paid during period for interest
1,097 
1,323 
Cash paid during period for income taxes
20,760 
12,439 
Non-cash transactions:
 
 
Property and equipment additions in accounts payable
5,140 
2,768 
Unrealized gain (loss) on postretirement obligation in accumulated other comprehensive income (loss)
28 
16 
Shares repurchased for minimum tax withholding on common stock and restricted stock under equity awards included in accounts payable
$ 95 
 
Overview and Basis of Presentation
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 digital customer support and fulfillment services, which includes order processing, payment processing, inventory control, product delivery and product returns handling. The Company has operations in two reportable segments entitled (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, in which the client base is primarily companies in the United States that are using the Company’s services to support their customer management needs; and (2) EMEA, which includes Europe, the Middle East and Africa.

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

Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2015. 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, 2014, as filed with the Securities and Exchange Commission (“SEC”) on February 19, 2015.

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.

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

New Accounting Standards Not Yet Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue  from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The amendments in ASU 2014-09 outline a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and indicate that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date” (“ASU 2015-14”). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. An entity should apply the amendments using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company is currently evaluating the methods of adoption and the impact that the adoption of ASU 2014-09 may have on its financial condition, results of operations and cash flows.

In June 2014, the FASB issued ASU 2014-12, “Compensation – Stock Compensation (Topic 718) Accounting for Share-Based  Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification (“ASC”) Topic 718, “Compensation — Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments either (1) prospective to all awards granted or modified after the effective date or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company does not expect the adoption of ASU 2014-12 on January 1, 2016 to materially impact its financial condition, results of operations and cash flows.

In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20) Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). This amendment eliminates from U.S. GAAP the concept of extraordinary items as part of the FASB’s initiative to reduce complexity in accounting standards. These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments either prospectively or retrospectively to all prior periods presented in the financial statements. The Company does not expect the adoption of ASU 2015-01 on January 1, 2016 to materially impact its financial condition, results of operations and cash flows.

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

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

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

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

New Accounting Standards Recently Adopted

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

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

Acquisition of Qelp
Acquisition of Qelp

Note 2. Acquisition of Qelp

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

The consideration consists of an initial purchase price and a contingent purchase price. The initial purchase price of $9.8 million, including certain post-closing adjustments relating to Qelp’s working capital, was funded through cash on hand upon the closing of the transaction on July 2, 2015. Approximately $0.9 million of the initial purchase price has been placed in an escrow account as security for the indemnification obligations of the Sellers under the Purchase Agreement. The contingent purchase price to be paid over a three year period is based on achieving targets tied to revenues and earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the years ended December 31, 2016, 2017 and 2018, not to exceed EUR 10.0 million.

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

 

                   Total                 

Cash

    $ 9,885     

Contingent consideration

     6,000     

Working capital adjustment

     (65)    
  

 

 

 
    $ 15,820     
  

 

 

 

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

 

The Company accounted for the Qelp acquisition in accordance with ASC 805 (“ASC 805”) “Business Combinations,” whereby the fair value of the purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed from Qelp based on their estimated fair values as of the closing date. Certain amounts are provisional and are subject to change, including accrued employment tax and other liabilities, tax analysis of the assets acquired and liabilities assumed, and goodwill. The Company expects to complete its analysis of the purchase price allocation during the fourth quarter of 2015.

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

 

                 Amount              

Cash and cash equivalents

    $ 450     

Receivables (1)

     1,541     

Prepaid expenses

     24     
  

 

 

 

Total current assets

     2,015     

Property and equipment

     2,168     

Goodwill

     9,574     

Intangibles

     6,000     

Deferred charges and other assets

     55     
  

Short-term debt

     (323)    

Accrued employee compensation and benefits

     (207)    

Income taxes payable

     (62)    

Deferred revenue

     (967)    

Other accrued expenses and current liabilities

     (1,030)    
  

 

 

 

Total current liabilities

     (2,589)    

Other long-term liabilities (2)

     (1,403)    
  

 

 

 
    $ 15,820     
  

 

 

 

 

(1) The fair value equals the gross contractual value of the receivables.

  

 

(2) Primarily includes long-term deferred tax liabilities.

  

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

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

         Amount Assigned          Weighted Average
 Amortization Period 
(years)
 

Customer relationships

    $ 5,400           7     

Trade name and trademarks

     100           3     

Content library

     500           2     
  

 

 

    
    $ 6,000           7     
  

 

 

    

The amount of Qelp’s revenues and net (loss) since the July 2, 2015 acquisition date, included in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2015 were as follows (in thousands):

     From July 2, 2015
 Through September 30, 
2015
 

Revenues

    $ 1,158      

Net (loss)

    $ (362)     

 

Merger and integration costs associated with Qelp included in “General and administrative” costs in the accompanying Condensed Consolidated Statement of Operations in the Other segment for the three and nine months ended September 30, 2015 were as follows (none in the comparable periods in 2014) (in thousands):

 

      Three Months Ended 
September 30, 2015
       Nine Months Ended  
September 30, 2015
 

Transaction costs

     $ 77           $ 455     
Costs Associated with Exit or Disposal Activities
Costs Associated with Exit or Disposal Activities

Note 3. Costs Associated with Exit or Disposal Activities

During 2011 and 2010, the Company announced several initiatives to streamline excess capacity through targeted seat reductions (the “Exit Plans”) in an on-going effort to manage and optimize capacity utilization. These Exit Plans included, but were not limited to, closing customer contact management centers in The Philippines, the United Kingdom, Ireland and South Africa and consolidating leased space in various locations in the U.S. and the Netherlands. These Exit Plans impacted approximately 800 employees. The Company has paid $15.1 million in cash through September 30, 2015 under these Exit Plans.

The cumulative costs expected and incurred as a result of the Exit Plans were as follows as of September 30, 2015 (in thousands):

 

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

Lease obligations and facility exit costs

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

Severance and related costs

     -           5,857           185           -           6,042     

Legal-related costs

     -           110           -           -           110     

Non-cash impairment charges

     480           474           159           3,847           4,960     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The following table summarizes the accrued liability associated with the Exit Plans’ exit or disposal activities and related charges for the three and nine months ended September 30, 2015 and 2014 (in thousands):

 

           Three Months Ended September 30,                  Nine Months Ended September 30,        
     2015      2014      2015      2014  

Beginning accrual

     $ 1,150            $ 2,111            $ 1,558            $ 2,974      

Lease obligations and facility exit costs (1)

     -            -            -            (185)     

Severance and related costs (1)

     -            (129)           -            (129)     

Legal-related costs

     -            -            -            -      

Cash payments (2)

     (209)           (192)           (617)           (865)     

Other non-cash changes (3)

     -            (2)           -            (7)     
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending accrual

     $ 941            $ 1,788            $ 941            $ 1,788      
  

 

 

    

 

 

    

 

 

    

 

 

 

(1) During 2014, the Company reversed accruals related to the final settlement of lease obligations and facility exit costs as well as severance and related costs for the Ireland sites, included in the EMEA segment, which reduced “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

(2) Related to lease obligations and facility exit costs.

(3) Effect of foreign currency translation.

 

Restructuring Liability Classification

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with its exit and disposal activities, by plan, as of September 30, 2015 and December 31, 2014 (in thousands):

 

 

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

September 30, 2015

        

Short-term accrued restructuring liability (1)

     $ 140           $ 486           $ 626     

Long-term accrued restructuring liability (2)

     70           245           315     
  

 

 

    

 

 

    

 

 

 

Ending accrual at September 30, 2015

     $ 210           $ 731           $ 941     
  

 

 

    

 

 

    

 

 

 

December 31, 2014

        

Short-term accrued restructuring liability (1)

     $ 109           $ 521           $ 630     

Long-term accrued restructuring liability (2)

     203           725           928     
  

 

 

    

 

 

    

 

 

 

Ending accrual at December 31, 2014

     $ 312           $ 1,246           $ 1,558     
  

 

 

    

 

 

    

 

 

 

 

(1)

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

 

(2)

 

 

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

The remaining restructuring liability relates to future rent obligations to be paid through the remainder of the lease terms, the last of which ends in February 2017. The EMEA Fourth Quarter 2011 and EMEA Fourth Quarter 2010 Exit Plans were settled during 2014.

Fair Value
Fair Value

Note 4. Fair Value

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.

   

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

 

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. These items are classified in Level 1 of the fair value hierarchy.

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

Investments Held in Rabbi Trust The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 7, Investments Held in Rabbi Trust, and Note 17, Stock-Based Compensation.

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

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

 

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 September 30, 2015 Using:  
         Balance at      Quoted Prices
in Active
Markets For
 Identical Assets 
       Significant  
Other
Observable
Inputs
     Significant
  Unobservable  
Inputs
 
          September 30, 2015       Level (1)      Level (2)      Level (3)  

Assets:

             

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

  (1)     $ 9,675          $ -              $ 9,675          $ -         

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

  (2)      5,810           5,810           -               -         

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

  (2)      1,590           1,590           -               -         

Guaranteed investment certificates

  (3)      86           -               86           -         
    

 

 

    

 

 

    

 

 

    

 

 

 
      $ 17,161          $ 7,400          $ 9,761          $ -         
    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

             

Long-term debt

  (4)     $ 70,000          $ -              $ 70,000          $ -         

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

  (1)      949           -               949           -         

Contingent consideration included in “Other long-term liabilities”

  (5)      6,048           -               -               6,048     
    

 

 

    

 

 

    

 

 

    

 

 

 
      $ 76,997          $ -              $ 70,949          $ 6,048     
    

 

 

    

 

 

    

 

 

    

 

 

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

Assets:

             

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

  (5)     $ 100,915          $ 100,915          $ -              $ -         

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

  (5)      10           10           -               -         

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

  (1)      1,489           -               1,489           -         

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

  (1)      4,060           -               4,060           -         

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

  (2)      5,589           5,589           -               -         

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

  (2)      1,363           1,363           -               -         

Guaranteed investment certificates

  (3)      79           -               79           -         
    

 

 

    

 

 

    

 

 

    

 

 

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

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

             

Long-term debt

  (4)     $ 75,000          $ -              $ 75,000          $ -         

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

  (1)      1,261           -               1,261           -         
    

 

 

    

 

 

    

 

 

    

 

 

 
      $ 76,261          $ -              $ 76,261          $ -         
    

 

 

    

 

 

    

 

 

    

 

 

 

(1) In the accompanying Condensed Consolidated Balance Sheets. See Note 6, Financial Derivatives.

(2) Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets. See Note 7, Investments Held in Rabbi Trust.

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

(4) The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 11, Borrowings.

(5) In the accompanying Condensed Consolidated Balance Sheets.

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

 

             Fair Value          

Balance at December 31, 2014

    $ -         

Acquisition

     6,000     

Payments

     -         

Imputed interest/adjustments

     -         

Effect of foreign currency

     48     
  

 

 

 

Balance at September 30, 2015

    $ 6,048     
  

 

 

 

 

The Company did not record any fair value adjustments to the contingent consideration as the key assumptions used to calculate the fair value at the acquisition date remained consistent at September 30, 2015. Should the assumptions regarding probability of achievement of certain revenue and EBITDA targets change in future periods, the change in fair value of the contingent consideration will be recognized in the accompanying Condensed Consolidated Statements of Operations. The Company will accrete interest expense each period using the effective interest method until the contingent consideration reaches the estimated future value of $9.1 million. Interest expense related to the contingent consideration is included in “Interest (expense)” in the accompanying Condensed Consolidated Statements of Operations.

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 September 30, 2015 and December 31, 2014.

Goodwill and Intangible Assets
Goodwill and Intangible Assets

Note 5. Goodwill and Intangible Assets

Intangible Assets

The following table presents the Company’s purchased intangible assets as of September 30, 2015 (in thousands):

 

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

Customer relationships

    $ 103,294          $ (55,414)         $ 47,880           8     

Trade names and trademarks

     11,701           (5,132)          6,569           8     

Non-compete agreements

     1,193           (1,193)          -               2     

Proprietary software

     850           (850)          -               2     

Favorable lease agreement

     449           (449)          -               2     

Content library

     504           (50)          454           2     
  

 

 

    

 

 

    

 

 

    
    $ 117,991          $ (63,088)         $ 54,903           8     
  

 

 

    

 

 

    

 

 

    

 

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

 

  

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

Customer relationships

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

Trade names and trademarks

     11,600           (4,128)          7,472           8     

Non-compete agreements

     1,209           (1,209)          -               2     

Proprietary software

     850           (850)          -               2     

Favorable lease agreement

     449           (449)          -               2     
  

 

 

    

 

 

    

 

 

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

 

 

    

 

 

    

 

 

    

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to September 30, 2015, is as follows (in thousands):

 

 Years Ending December 31,            Amount          

 

 

 2015 (remaining three months)

   $ 3,557     

 2016

     14,587     

 2017

     14,461     

 2018

     8,242     

 2019

     7,644     

 2020

     5,138     

 2021 and thereafter

     1,274     

 

Goodwill

Changes in goodwill consist of the following (in thousands):

 

          January 1, 2015                Acquisition (1)            Effect of Foreign 
Currency
       September 30, 2015    

Americas

    $ 193,831          $ -              $ (6,390)         $ 187,441     

EMEA

     -               9,574           (103)          9,471     
  

 

 

    

 

 

    

 

 

    

 

 

 
    $ 193,831          $ 9,574          $ (6,493)         $ 196,912     
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  See Note 2, Acquisition of Qelp, for further information.

  

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

For the annual goodwill impairment test, the Company elected to forgo the option to first assess qualitative factors and performed its annual two-step goodwill impairment test as of July 31, 2015. Under ASC 350, the carrying value of assets is calculated at the reporting unit level. The quantitative assessment of goodwill includes comparing a reporting unit’s calculated fair value to its carrying value. The calculation of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth, the useful life over which cash flows will occur and determination of the Company’s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. If the fair value of the reporting unit is less than its carrying value, goodwill is considered impaired and an impairment loss is recorded to the extent that the fair value of the goodwill within the reporting unit is less than its carrying value.

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

 

   

Revenue projections, including revenue growth during the forecast periods;

   

EBITDA margin projections over the forecast periods;

   

Estimated income tax rates;

   

Estimated capital expenditures; and

   

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

As of July 31, 2015, the Company concluded that goodwill was not impaired for all five of the reporting units. While the fair values of four of the reporting units were substantially in excess of their carrying value, the Qelp reporting unit’s fair value approximated its carrying value due to the proximity to the acquisition date of July 2, 2015. The newly acquired Qelp reporting unit’s carrying value was $15.6 million at July 31, 2015, including $9.4 million of goodwill. The estimate of fair value was based on generally accepted valuation techniques and the significant assumptions outlined above.

Financial Derivatives
Financial Derivatives

Note 6. 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):

 

       September 30, 2015         December 31, 2014   

Deferred gains (losses) in AOCI

    $ (680)          $ (157)     

Tax on deferred gains (losses) in AOCI

     65            46      
  

 

 

    

 

 

 

Deferred gains (losses) in AOCI, net of taxes

    $ (615)          $ (111)     
  

 

 

    

 

 

 

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

    $ (680)        
  

 

 

    

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 nine months ended September 30, 2015 and 2014, 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 relating primarily to intercompany receivables and payables, and other assets and liabilities that are denominated in currencies other than the Company’s subsidiaries’ functional currencies. These contracts generally do not exceed 180 days in duration.

 

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

 

             As of September 30, 2015                    As of December 31, 2014        

 Contract Type

   Notional
    Amount in    

USD
         Settle Through    
Date
   Notional
    Amount in    

USD
         Settle Through    
Date

 Cash flow hedges: (1)

           

 Options:

           

 Philippine Pesos

      $ 79,000          September 2016       $ 73,000          December 2015

 Forwards:

           

 Philippine Pesos

     500          October 2015      9,000          March 2015

 Costa Rican Colones

     46,300          August 2016      51,600          October 2015

 Hungarian Forints

     686          December 2015      -          -

 Romanian Leis

     2,664          December 2015      10,414          December 2015

 Net investment hedges: (2)

           

 Forwards:

           

 Euros

     63,470          March 2016      51,648          March 2016

 Non-designated hedges: (3)

           

 Forwards

     51,192          December 2015      64,541          March 2015

 

 (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 receivables and payables, and cash held in non-functional currencies.

Master netting agreements exist with each respective counterparty to reduce credit risk by permitting net settlement of derivative positions. In the event of default by the Company or one of its counterparties, these agreements include a set-off clause that provides the non-defaulting party the right to net settle all derivative transactions, regardless of the currency and settlement date. The maximum amount of loss due to credit risk that, based on gross fair value, the Company would incur if parties to the derivative transactions that make up the concentration failed to perform according to the terms of the contracts was $9.7 million and $5.5 million as of September 30, 2015 and December 31, 2014, respectively. After consideration of these netting arrangements and offsetting positions by counterparty, the total net settlement amount as it relates to these positions are asset positions of $9.2 million and $4.4 million as of September 30, 2015 and December 31, 2014, respectively, and liability positions of $0.5 million and $0.1 million as of September 30, 2015 and December 31, 2014, respectively.

Although legally enforceable master netting arrangements exist between the Company and each counterparty, the Company has elected to present the derivative assets and derivative liabilities on a gross basis in the accompanying 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  
           September 30, 2015                  December 31, 2014        
     Fair Value      Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

     

Foreign currency forward and option contracts (1)

    $ 904          $ 974     

Derivatives designated as net investment hedging instruments under ASC 815:

     

Foreign currency forward contracts (1)

     8,545           -         

Foreign currency forward contracts (2)

     -               4,060     
  

 

 

    

 

 

 
     9,449           5,034     

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts (1)

     226           515     

    

     
  

 

 

    

 

 

 

Total derivative assets

    $ 9,675          $ 5,549     
  

 

 

    

 

 

 
     Derivative Liabilities  
     September 30, 2015      December 31, 2014  
     Fair Value      Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

     

Foreign currency forward and option contracts (3)

    $ 813          $ 406     

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts (3)

     136           855     

    

     
  

 

 

    

 

 

 

Total derivative liabilities

    $ 949          $ 1,261     
  

 

 

    

 

 

 

 

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

 

(2)

 

 

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

 

(3)

 

 

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 September 30, 2015 and 2014 (in thousands):

 

         Gain (Loss) Recognized in    
AOCI on Derivatives
(Effective Portion)
     Gain (Loss) Reclassified
From Accumulated AOCI
  Into “Revenues” (Effective  
Portion)
     Gain (Loss) Recognized in
 “Revenues” on Derivatives 
(Ineffective Portion and
Amount Excluded from
Effectiveness Testing)
 
     September 30,      September 30,      September 30,  
           2015                  2014                  2015                  2014                  2015                  2014        

Derivatives designated as cash flow hedging instruments under ASC 815:

                 

Foreign currency forward and option contracts

    $ (1,090)         $ (1,280)        $ 553          $ (652)         $ 11          $ (1)    

Derivatives designated as net investment hedging instruments under ASC 815:

                 

Foreign currency forward contracts

     (25)          3,999           -           -           -           -     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
    $ (1,115)         $ 2,719          $ 553          $ (652)         $ 11          $ (1)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

            Gain (Loss) Recognized    
       Statement of      on Derivatives  
     Operations    September 30,  
     Location          2015                  2014        

Derivatives not designated as hedging instruments under ASC 815:

        
   Other income      

Foreign currency forward contracts

   and (expense)     $ 1,727          $ (386)    

Foreign currency forward contracts

   Revenues      (8)          -         
     

 

 

    

 

 

 
       $ 1,719          $ (386)    
     

 

 

    

 

 

 

 

The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the nine months ended September 30, 2015 and 2014 (in thousands):

 

         Gain (Loss) Recognized in    
AOCI on Derivatives
(Effective Portion)
     Gain (Loss) Reclassified
From Accumulated AOCI
  Into “Revenues”  (Effective  
Portion)
     Gain (Loss) Recognized in
 “Revenues” on Derivatives 
(Ineffective  Portion and
Amount Excluded from
Effectiveness Testing)
 
     September 30,      September 30,      September 30,  
           2015                  2014                  2015                  2014                  2015                  2014        

Derivatives designated as cash flow hedging instruments under ASC 815:

                 

Foreign currency forward and option contracts

    $ 1,322          $ (3,823)         $ 1,881          $ (4,781)         $ 13          $ (5)    

Derivatives designated as net investment hedging instruments under ASC 815:

                 

Foreign currency forward contracts

     4,485           4,161           -           -           -           -     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
    $ 5,807          $ 338          $ 1,881          $ (4,781)         $ 13          $ (5)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

              Gain (Loss) Recognized      
       Statement of      on Derivatives  
     Operations    September 30,  
     Location          2015                  2014        

Derivatives not designated as hedging instruments under ASC 815:

        
   Other income      

Foreign currency forward contracts

   and (expense)     $ 1,630           $ (994)     

Foreign currency forward contracts

   Revenues      (4)           -          
     

 

 

    

 

 

 
       $ 1,626           $ (994)     
Investments Held in Rabbi Trust
Investments Held in Rabbi Trust

Note 7. Investments Held in Rabbi Trust

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

 

                 September 30, 2015                               December 31, 2014               
             Cost                  Fair Value                  Cost                  Fair Value      

Mutual funds

    $ 6,047          $ 7,400          $ 5,160          $ 6,952     
  

 

 

    

 

 

    

 

 

    

 

 

 

 

The mutual funds held in rabbi trust were 79% equity-based and 21% debt-based as of September 30, 2015. 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 September 30,      Nine Months Ended September 30,  
             2015                      2014                  2015                      2014          

Gross realized gains from sale of trading securities

    $ -               $ 153           $ 20           $ 156      

Gross realized (losses) from sale of trading securities

     -                -                (1)           -          

Dividend and interest income

     9            9            27            27      

Net unrealized holding gains (losses)

     (543)           (308)           (470)           (29)     
  

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income (losses)

    $ (534)          $ (146)          $ (424)          $ 154      
  

 

 

    

 

 

    

 

 

    

 

 

 
Property and Equipment
Property and Equipment

Note 8. Property and Equipment

In February 2015, customer contact management centers (the “facilities”) located in Perry County, Kentucky, Buchanan County, Virginia and Wise, Virginia experienced damage to the buildings and contents as a result of winter storms. The Company filed an insurance claim with its property insurance company to recover losses of $1.6 million. The Company received $0.5 million and $1.1 million in April 2015 and July 2015, respectively, for costs to clean up and repair the facilities and business interruption. The Company completed the necessary clean up and repairs. The claim was finalized during the third quarter of 2015, resulting in a $0.9 million net gain on insurance settlement included in “General and administrative” in the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2015.

Deferred Revenue
Deferred Revenue

Note 9. Deferred Revenue

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

 

 

      September 30, 2015         December 31, 2014    

Future service

    $ 23,669          $ 25,222     

Estimated potential penalties and holdbacks

     7,167           9,023     
  

 

 

    

 

 

 
    $ 30,836          $ 34,245     
  

 

 

    

 

 

 
Deferred Grants
Deferred Grants

Note 10. Deferred Grants

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

 

      September 30, 2015         December 31, 2014    

Property grants

     $ 4,551           $ 5,110     

Lease grants

     393           -     

Employment grants

     198           207     
  

 

 

    

 

 

 

Total deferred grants

     5,142           5,317     

Less: Property grants - short-term (1)

     -           -     

Less: Lease grants - short-term (1)

     -           -     

Less: Employment grants - short-term (1)

     (198)          (207)    
  

 

 

    

 

 

 

Total long-term deferred grants (2)

     $ 4,944           $ 5,110     
  

 

 

    

 

 

 

 

(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
Borrowings

Note 11. Borrowings

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

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

Borrowings consist of the following (in thousands):

 

       September 30, 2015          December 31, 2014    

Revolving credit facility

    $ 70,000          $ 75,000     

Less: Current portion

     -             -       
  

 

 

    

 

 

 

Total long-term debt

    $ 70,000          $ 75,000     
  

 

 

    

 

 

 

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

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

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

The 2015 Credit Agreement is guaranteed by all of the Company’s existing and future direct and indirect material U.S. subsidiaries and secured by a pledge of 100% of the non-voting and 65% of the voting capital stock of all the direct foreign subsidiaries of the Company and those of the guarantors.

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

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

 

           Three Months Ended September 30,                  Nine Months Ended September 30,        
     2015      2014      2015      2014  

Average daily utilization

    $ 65,435          $ 79,000          $ 69,952          $ 88,462     

Interest expense, including commitment fee (1) 

    $ 327          $ 339          $ 965          $ 1,088     

Weighted average interest rate

     2.0%          1.7%          1.9%          1.6%    

(1) Excludes the amortization of deferred loan fees.

           

 

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

Note 12. 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, 2014

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

Pre-tax amount

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

Tax (provision) benefit

     -             (2,385)          57           (17)          -             (2,345)    

Reclassification of (gain) loss to net income

     -             -             (35)          5,237           (49)          5,153     

Foreign currency translation

     120           -             (114)          (6)          -             -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance at December 31, 2014

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

Pre-tax amount

     (28,820)          4,485           -             1,335           74           (22,926)    

Tax (provision) benefit

     -             (1,602)          -             47           -             (1,555)    

Reclassification of (gain) loss to net income

     -             -             (31)          (1,921)          (46)          (1,998)    

Foreign currency translation

     7           -             (42)          35           -             -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance at September 30, 2015

     $         (50,889)          $         3,159           $         935           $         (615)          $         370           $         (47,040)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

 

         Three Months Ended    
September 30,
         Nine Months Ended    
September 30,
     Statements of Operations
     2015      2014      2015      2014      Location

Actuarial Gain (Loss) Related to Pension

              

Liability: (1)

              

Pre-tax amount

     $ 10           $ 12           $ 31           $ 37         Direct salaries and related costs    

Tax (provision) benefit

     -           -           -           -         Income taxes
  

 

 

    

 

 

    

 

 

    

 

 

    

Reclassification to net income

     10           12           31           37        

Gain (Loss) on Cash Flow Hedging

              

Instruments: (2)

              

Pre-tax amount

     564           (653)          1,894           (4,786)        Revenues

Tax (provision) benefit

     16           (5)          27           108         Income taxes
  

 

 

    

 

 

    

 

 

    

 

 

    

Reclassification to net income

     580           (658)          1,921           (4,678)       

Gain (Loss) on Post Retirement

              

Obligation: (1)

              

Pre-tax amount

     18           13           46           36         General and administrative

Tax (provision) benefit

     -           -           -           -         Income taxes
  

 

 

    

 

 

    

 

 

    

 

 

    

Reclassification to net income

     18           13           46           36        

Total reclassification of gain (loss) to net

              
  

 

 

    

 

 

    

 

 

    

 

 

    

income

     $             608           $             (633)          $             1,998           $             (4,605)       
  

 

 

    

 

 

    

 

 

    

 

 

    

(1)  See Note 16, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

(2)  See Note 6, Financial Derivatives, for further information.

Except as discussed in Note 13, Income Taxes, earnings associated with the Company’s investments in its foreign subsidiaries are considered to be indefinitely reinvested and no provision for income taxes on those earnings or translation adjustments have been provided.

Income Taxes
Income Taxes

Note 13. Income Taxes

The Company’s effective tax rate was 14.2% and 22.5% for the three months ended September 30, 2015 and 2014, respectively. The decrease in the effective tax rate is predominately due to the recognition of a $2.2 million previously unrecognized tax benefit arising from statute of limitations expirations and a $1.3 million reversal of a valuation allowance on deferred tax assets where it is more likely than not the assets will be realized due to cumulative three year profitability. In addition, the change in tax rate was affected by shifts in earnings among the various jurisdictions in which the Company operates, as well as several factors that are not 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 aforementioned factors in conjunction with the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in uncertain tax positions, adjustments of valuation allowances and tax credits, partially offset by the tax impact of permanent differences and foreign withholding taxes.

The Company’s effective tax rate was 22.1% and 23.4% for the nine months ended September 30, 2015 and 2014, respectively. The decrease in the effective tax rate is due to the $2.2 million recognition of a previously unrecognized tax benefit and a $1.3 million reversal of a valuation allowance on deferred tax assets, as explained above. Additionally, the change in tax rate was affected by 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 22.1% as compared to the U.S. statutory federal income tax rate of 35.0% was primarily due to the aforementioned factors in conjunction with the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in uncertain tax positions, adjustments of valuation allowances and tax credits, partially offset by the tax impact of permanent differences and foreign withholding taxes.

The Company has accrued $8.7 million and $13.3 million as of September 30, 2015 and December 31, 2014, respectively, excluding penalties and interest, for the liability for unrecognized tax benefits. The decrease is primarily due to the recognition of $2.2 million of tax benefits resulting from the expiration of the statute of limitations, as previously mentioned, and the effects of foreign exchange rate adjustments. As of December 31, 2014, $2.7 million of unrecognized tax benefits was recorded to “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheet in accordance with ASU 2013-11 “Income Taxes (Topic 740) – Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The $8.7 million and the remaining $10.6 million of the unrecognized tax benefits at September 30, 2015 and December 31, 2014, respectively, 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.

The Company is currently under audit in several tax jurisdictions. The Company received assessments for the Canadian 2003-2009 audit. Requests for Competent Authority Assistance were filed with both the Canadian Revenue Agency and the U.S. Internal Revenue Service and the Company paid mandatory security deposits to Canada as part of this process. The total amount of deposits, net of the effects of foreign exchange rate adjustments, are $13.9 million and $15.9 million as of September 30, 2015 and December 31, 2014, 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                

Earnings Per Share
Earnings Per Share

Note 14. Earnings Per Share

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

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

 

       Three Months Ended September 30,           Nine Months Ended September 30,     
    2015     2014     2015     2014  
 

 

 

   

 

 

 

Basic:

       

Weighted average common shares outstanding

    41,783          42,704          41,992          42,721     

Diluted:

       

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

    301          133          345          123     
 

 

 

   

 

 

   

 

 

   

 

 

 

Total weighted average diluted shares outstanding

    42,084          42,837          42,337          42,844     
 

 

 

   

 

 

   

 

 

   

 

 

 

Anti-dilutive shares excluded from the diluted earnings per

share calculation

    14          30          25          4     
 

 

 

   

 

 

   

 

 

   

 

 

 

On August 18, 2011, the Company’s Board of Directors (the “Board”) authorized the Company to purchase up to 5.0 million shares of its outstanding common stock (the “2011 Share Repurchase Program”). A total of 4.9 million shares have been repurchased under the 2011 Share Repurchase Program since inception. The shares are purchased, from time to time, through open market purchases or in negotiated private transactions, and the purchases are based on factors, including but not limited to, the stock price, management discretion and general market conditions. The 2011 Share Repurchase Program has no expiration date.

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

 

     Total Number                     Total Cost of  
     of Shares             Range of Prices Paid Per Share         Shares  
     Repurchased         Low     High         Repurchased      

 

   

 

 

   

 

 

   

 

 

 

Three Months Ended:

        

September 30, 2015

     354          $ 24.30          $ 25.00          $ 8,746     

September 30, 2014

     138          $ 19.82          $ 20.00          $ 2,745     

Nine Months Ended:

        

September 30, 2015

     854          $ 22.81          $ 25.00          $ 20,715     

September 30, 2014

     268          $ 19.82          $ 20.00          $ 5,350     
Commitments and Loss Contingency
Commitments and Loss Contingency

Note 15. Commitments and Loss Contingency

Commitments

During the nine months ended September 30, 2015, 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 September 30, 2015 (in thousands):

 

     Amount  

 

 

2015 (remaining three months)

     $ 1,038     

2016

     11,847     

2017

     11,909     

2018

     11,559     

2019

     11,140     

2020

     10,160     

2021 and thereafter

     19,270     
  

 

 

 

Total minimum payments required

     $             76,923     
  

 

 

 

During the nine months ended September 30, 2015, 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 September 30, 2015 (in thousands):

 

     Amount  

 

 

2015 (remaining three months)

     $ 2,987     

2016

     2,673     

2017

     1,669     

2018

     -     

2019

     -     

2020

     -     

2021 and thereafter

     -     
  

 

 

 

Total minimum payments required

     $             7,329     
  

 

 

 

On July 2, 2015, the Company completed the Qelp acquisition, which included contingent consideration of $6.0 million, based on achieving targets tied to revenues and EBITDA for the years ended December 31, 2016, 2017 and 2018. The estimated future value of the contingent consideration is $9.1 million and is expected to be paid over a three year period.

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, 2014.

Loss Contingency

The Company from time to time is involved in legal actions arising in the ordinary course of business. With respect to these matters, management believes that the Company has adequate legal defenses and/or when possible and appropriate, provided adequate accruals related to those matters such that the ultimate outcome will not have a material adverse effect on the Company’s financial position or results of operations.

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

Note 16. Defined Benefit Pension Plan and Postretirement Benefits

Defined Benefit Pension Plans

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

 

         Three Months Ended September 30,              Nine Months Ended September 30,      
     2015      2014      2015      2014  

Service cost

    $ 101          $ 101          $ 329          $ 302     

Interest cost

     31           31           102           92     

Recognized actuarial (gains)

     (10)          (13)          (31)          (37)    
  

 

 

    

 

 

    

 

 

    

 

 

 

Net periodic benefit cost

     $             122           $             119           $             400           $             357     
  

 

 

    

 

 

    

 

 

    

 

 

 

Employee Retirement Savings Plans

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

 

         Three Months Ended September 30,              Nine Months Ended September 30,      
     2015      2014      2015      2014  

401(k) plan contributions

    $           181          $           214          $           652          $           694     
  

 

 

    

 

 

    

 

 

    

 

 

 

Split-Dollar Life Insurance Arrangement

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

 

      September 30, 2015        December 31, 2014   

Postretirement benefit obligation

    $ 22          $ 46     

Unrealized gains (losses) in AOCI (1)

    $ 370          $ 342     

(1)  Unrealized gains (losses) are impacted by changes in discount rates related to the

     postretirement obligation.

  

  

Stock-Based Compensation
Stock-Based Compensation

Note 17. Stock-Based Compensation

The Company’s stock-based compensation plans include the 2011 Equity Incentive Plan, the 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 September 30,              Nine Months Ended September 30,      
     2015      2014      2015      2014  

Stock-based compensation (expense) (1)

     $ (2,600)          $ (2,738)          $ (5,884)          $ (4,429)    

Income tax benefit (2)

     992           958           2,207           1,550     

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

     40           -           209           (30)    

 

  (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 September 30, 2015 and December 31, 2014.

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

 

         Nine Months Ended September 30,      
     2015      2014  

Expected volatility

     34.1%          38.9%    

Weighted-average volatility

     34.1%          38.9%    

Expected dividend rate

     0.0%          0.0%    

Expected term (in years)

     5.0           5.0     

Risk-free rate

     1.6%          1.7%    

 

The following table summarizes SARs activity as of September 30, 2015 and for the nine 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, 2015

     959         $ -            

Granted

     217         $ -            

Exercised

     (604)        $ -            

Forfeited or expired

     -           $ -            
  

 

 

          

Outstanding at September 30, 2015

     572         $ -            7.9         $ 2,473     
  

 

 

    

 

 

    

 

 

    

 

 

 

Vested or expected to vest at September 30, 2015

     572         $ -            7.9         $ 2,473     
  

 

 

    

 

 

    

 

 

    

 

 

 

Exercisable at September 30, 2015

     148         $ -            5.2         $ 855     
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

         Nine Months Ended September 30,      
     2015      2014  

Number of SARs granted

     217           246     

Weighted average grant-date fair value per SAR

       $ 8.17             $ 7.20     

Intrinsic value of SARs exercised

       $ 4,792             $ 333     

Fair value of SARs vested

       $ 1,302             $ 1,553     

The following table summarizes nonvested SARs activity as of September 30, 2015 and for the nine months then ended:

 

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

 

 

Nonvested at January 1, 2015

     411         $ 6.61     

Granted

     217         $ 8.17     

Vested

     (204)        $ 6.41     

Forfeited or expired

     -           $ -     
  

 

 

    

Nonvested at September 30, 2015

     424         $ 7.50     
  

 

 

    

As of September 30, 2015, there was $2.4 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested SARs granted under the 2011 Plan. This cost is expected to be recognized over a weighted average period of 1.4 years.

Restricted Shares The Board, at the recommendation of the Compensation 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 September 30, 2015 and for the nine months then ended:

 

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

 

 

Nonvested at January 1, 2015

     1,194         $ 16.80     

Granted

     441         $ 25.06     

Vested

     (125)        $ 16.10     

Forfeited or expired

     (264)        $ 15.71     
  

 

 

    

Nonvested at September 30, 2015

     1,246         $ 20.03     
  

 

 

    

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

 

         Nine Months Ended September 30,      
     2015      2014  

Number of restricted shares/RSUs granted

     441           500     

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

       $ 25.06             $ 19.77     

Fair value of restricted shares/RSUs vested

       $ 2,019             $ 895     

As of September 30, 2015, based on the probability of achieving the performance goals, there was $16.9 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted shares/RSUs granted under the 2011 Plan. This cost is expected to be recognized over a weighted average period of 1.8 years.

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

The 2004 Fee Plan also provided that each non-employee director would receive, on the day after the annual shareholders meeting, an annual retainer for service as a non-employee director (the “Annual Retainer”). Prior to May 17, 2012, the Annual Retainer was $95,000, of which $50,000 was payable in cash, and the remainder was paid in stock. The annual grant of cash vested in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant. The annual grant of shares paid to non-employee directors prior to May 17, 2012 vests in eight equal quarterly installments, one-eighth on the day following the annual meeting of shareholders, and an additional one-eighth on each successive third monthly anniversary of the date of grant. On May 17, 2012, upon the recommendation of the Compensation 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.

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

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

The following table summarizes nonvested common stock share award activity as of September 30, 2015 and for the nine months then ended:

 

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

 

 

Nonvested at January 1, 2015

     12         $ 20.24     

Granted

     32         $ 24.70     

Vested

     (25)        $ 23.08     

Forfeited or expired

     -           $ -     
  

 

 

    

Nonvested at September 30, 2015

     19         $ 24.06     
  

 

 

    

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

 

         Nine Months Ended September 30,      
     2015      2014  

Number of share awards granted

     32           36     

Weighted average grant-date fair value per share award

    $ 24.70          $  20.15     

Fair value of share awards vested

    $ 580          $ 470     

As of September 30, 2015, there was $0.4 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested common stock share awards granted under the Fee Plan. This cost is expected to be recognized over a weighted average period of 0.4 years.

Deferred Compensation Plan The Company’s non-qualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which is not shareholder-approved, was adopted by the Board effective December 17, 1998, It was last amended and restated on August 20, 2014, effective as of January 1, 2014. It provides certain eligible employees the ability to defer any portion of their compensation until the participant’s retirement, termination, disability or death, or a change in control of the Company. Using the Company’s common stock, the Company matches 50% of the amounts deferred by certain senior management participants on a quarterly basis up to a total of $12,000 per year for the president, chief executive officer and executive vice presidents and $7,500 per year for senior vice presidents, global vice presidents and vice presidents (participants below the level of vice president are not eligible to receive matching contributions from the Company). Matching contributions and the associated earnings vest over a seven year service period. Deferred compensation amounts used to pay benefits, which are held in a rabbi trust, include investments in various mutual funds and shares of the Company’s common stock (see Note 7, Investments Held in Rabbi Trust). As of September 30, 2015 and December 31, 2014, liabilities of $7.4 million and $7.0 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 $1.6 million and $1.5 million at September 30, 2015 and December 31, 2014, respectively, is included in “Treasury stock” in the accompanying Condensed Consolidated Balance Sheets.

The following table summarizes nonvested common stock activity as of September 30, 2015 and for the nine months then ended:

 

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

 

 

Nonvested at January 1, 2015

     5         $ 17.88     

Granted

     8         $ 24.83     

Vested

     (10)        $ 22.91     

Forfeited or expired

     -           $ -     
  

 

 

    

Nonvested at September 30, 2015

     3         $ 19.36     
  

 

 

    

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

 

         Nine Months Ended September 30,      
     2015      2014  

Number of shares of common stock granted

     8           10     

Weighted average grant-date fair value per common stock

     $ 24.83           $ 20.34     

Fair value of common stock vested

     $ 235           $ 198     

Cash used to settle the obligation

     $ 65           $ 518     

As of September 30, 2015, there was less than $0.1 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested common stock granted under the Deferred Compensation Plan. This cost is expected to be recognized over a weighted average period of 2.0 years.

Segments and Geographic Information
Segments and Geographic Information

Note 18. 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), digital customer support 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 September 30, 2015:

           

Revenues

    $ 257,421          $ 60,481          $ 22          $ 317,924     

Percentage of revenues

     81.0%         19.0%         0.0%         100.0%   

Depreciation, net

    $ 9,474          $ 1,161          $ 303          $ 10,938     

Amortization of intangibles

    $ 3,397          $ 241          $ -          $ 3,638     

Income (loss) from operations

    $ 33,541          $ 4,629          $ (13,663)         $ 24,507     

Other (expense), net

           (1,187)          (1,187)    

Income taxes

           (3,310)          (3,310)    
           

 

 

 

Net income

             $ 20,010     
           

 

 

 

Total assets as of September 30, 2015

    $     1,062,488          $       1,420,022          $       (1,537,895)         $ 944,615     
  

 

 

    

 

 

    

 

 

    

 

 

 

Three Months Ended September 30, 2014:

           

Revenues

    $ 267,421          $ 65,250          $ -          $ 332,671     

Percentage of revenues

     80.4%         19.6%         0.0%         100.0%   

Depreciation, net

    $ 10,304          $ 1,212          $ -          $ 11,516     

Amortization of intangibles

    $ 3,597          $ -          $ -          $ 3,597     

Income (loss) from operations

    $ 28,294          $ 6,964          $ (13,166)         $ 22,092     

Other (expense), net

           (621)          (621)    

Income taxes

           (4,833)          (4,833)    
           

 

 

 

Net income

             $ 16,638     
           

 

 

 

Total assets as of September 30, 2014

    $ 1,091,661          $ 1,365,437          $ (1,518,824)         $ 938,274     
  

 

 

    

 

 

    

 

 

    

 

 

 

 

          Americas                 EMEA                   Other (1)                Consolidated    

Nine Months Ended September 30, 2015:

       

Revenues

   $ 771,276         $           177,728         $ 58        $ 949,062     

Percentage of revenues

    81.3%         18.7%         0.0%        100.0%    

Depreciation, net

   $ 28,659         $ 3,388         $ 957        $ 33,004     

Amortization of intangibles

   $ 10,263         $ 241         $       $ 10,504     

Income (loss) from operations

   $ 94,751         $ 11,386         $ (40,872)       $ 65,265     

Other (expense), net

        (2,915)        (2,915)    

Income taxes

        (13,789)        (13,789)    
       

 

 

 

Net income

         $ 48,561     
       

 

 

 

Nine Months Ended September 30, 2014:

       

Revenues

   $ 785,330         $ 192,268         $       $ 977,598     

Percentage of revenues

    80.3%         19.7%         0.0%        100.0%    

Depreciation, net

   $ 30,552         $ 3,584         $       $ 34,136     

Amortization of intangibles

   $ 10,907         $ -         $       $ 10,907     

Income (loss) from operations

   $ 72,076         $ 11,409         $ (36,488)       $ 46,997     

Other (expense), net

        (940)        (940)    

Income taxes

        (10,769)        (10,769)    
       

 

 

 

Net income

         $ 35,288     
       

 

 

 

 

  (1)

Other items (including corporate and other costs, impairment costs, other income and expense, and income taxes) are shown for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the three and nine months ended September 30, 2015 and 2014. Inter-segment revenues are not material to the Americas and EMEA segment results. The Company evaluates the performance of its geographic segments based on revenues and income (loss) from operations, and does not include segment assets or other income and expense items for management reporting purposes.

Other Income (Expense)
Other Income (Expense)

Note 19. Other Income (Expense)

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

 

       Three Months Ended September 30,          Nine Months Ended September 30,    
               2015                          2014                          2015                          2014            

Foreign currency transaction gains (losses)

    $ (1,926)         $ 13          $ (2,951)         $ 644     

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

     1,727           (386)          1,630           (994)    

Other miscellaneous income (expense)

     (672)          (33)          (546)          208     
  

 

 

    

 

 

    

 

 

    

 

 

 
    $ (871)         $ (406)         $ (1,867)         $ (142)    
  

 

 

    

 

 

    

 

 

    

 

 

 
Related Party Transactions
Related Party Transactions

Note 20. 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 September 30, 2015 and 2014 and $0.3 million during both the nine months ended September 30, 2015 and 2014 under the terms of the lease.

Overview and Basis of Presentation (Policies)

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

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

Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2015. 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, 2014, as filed with the Securities and Exchange Commission (“SEC”) on February 19, 2015.

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.

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

New Accounting Standards Not Yet Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue  from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The amendments in ASU 2014-09 outline a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and indicate that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date” (“ASU 2015-14”). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. An entity should apply the amendments using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company is currently evaluating the methods of adoption and the impact that the adoption of ASU 2014-09 may have on its financial condition, results of operations and cash flows.

In June 2014, the FASB issued ASU 2014-12, “Compensation – Stock Compensation (Topic 718) Accounting for Share-Based  Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification (“ASC”) Topic 718, “Compensation — Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments either (1) prospective to all awards granted or modified after the effective date or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company does not expect the adoption of ASU 2014-12 on January 1, 2016 to materially impact its financial condition, results of operations and cash flows.

In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20) Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). This amendment eliminates from U.S. GAAP the concept of extraordinary items as part of the FASB’s initiative to reduce complexity in accounting standards. These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments either prospectively or retrospectively to all prior periods presented in the financial statements. The Company does not expect the adoption of ASU 2015-01 on January 1, 2016 to materially impact its financial condition, results of operations and cash flows.

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

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

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

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

New Accounting Standards Recently Adopted

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

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

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.

   

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

 

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.

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.

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.

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

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

Acquisition of Qelp (Tables)

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

 

                   Total                 

Cash

    $ 9,885     

Contingent consideration

     6,000     

Working capital adjustment

     (65)    
  

 

 

 
    $ 15,820     
  

 

 

 

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

 

                 Amount              

Cash and cash equivalents

    $ 450     

Receivables (1)

     1,541     

Prepaid expenses

     24     
  

 

 

 

Total current assets

     2,015     

Property and equipment

     2,168     

Goodwill

     9,574     

Intangibles

     6,000     

Deferred charges and other assets

     55     
  

Short-term debt

     (323)    

Accrued employee compensation and benefits

     (207)    

Income taxes payable

     (62)    

Deferred revenue

     (967)    

Other accrued expenses and current liabilities

     (1,030)    
  

 

 

 

Total current liabilities

     (2,589)    

Other long-term liabilities (2)

     (1,403)    
  

 

 

 
    $ 15,820     
  

 

 

 

 

(1) The fair value equals the gross contractual value of the receivables.

  

 

(2) Primarily includes long-term deferred tax liabilities.

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

         Amount Assigned          Weighted Average
 Amortization Period 
(years)
 

Customer relationships

    $ 5,400           7     

Trade name and trademarks

     100           3     

Content library

     500           2     
  

 

 

    
    $ 6,000           7     
  

 

 

    

The amount of Qelp’s revenues and net (loss) since the July 2, 2015 acquisition date, included in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2015 were as follows (in thousands):

     From July 2, 2015
 Through September 30, 
2015
 

Revenues

    $ 1,158      

Net (loss)

    $ (362)     

Merger and integration costs associated with Qelp included in “General and administrative” costs in the accompanying Condensed Consolidated Statement of Operations in the Other segment for the three and nine months ended September 30, 2015 were as follows (none in the comparable periods in 2014) (in thousands):

 

      Three Months Ended 
September 30, 2015
       Nine Months Ended  
September 30, 2015
 

Transaction costs

     $ 77           $ 455     
Costs Associated with Exit or Disposal Activities (Tables)

The cumulative costs expected and incurred as a result of the Exit Plans were as follows as of September 30, 2015 (in thousands):

 

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

Lease obligations and facility exit costs

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

Severance and related costs

     -           5,857           185           -           6,042     

Legal-related costs

     -           110           -           -           110     

Non-cash impairment charges

     480           474           159           3,847           4,960     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The following table summarizes the accrued liability associated with the Exit Plans’ exit or disposal activities and related charges for the three and nine months ended September 30, 2015 and 2014 (in thousands):

 

           Three Months Ended September 30,                  Nine Months Ended September 30,        
     2015      2014      2015      2014  

Beginning accrual

     $ 1,150            $ 2,111            $ 1,558            $ 2,974      

Lease obligations and facility exit costs (1)

     -            -            -            (185)     

Severance and related costs (1)

     -            (129)           -            (129)     

Legal-related costs

     -            -            -            -      

Cash payments (2)

     (209)           (192)           (617)           (865)     

Other non-cash changes (3)

     -            (2)           -            (7)     
  

 

 

    

 

 

    

 

 

    

 

 

 

Ending accrual

     $ 941            $ 1,788            $ 941            $ 1,788      
  

 

 

    

 

 

    

 

 

    

 

 

 

(1) During 2014, the Company reversed accruals related to the final settlement of lease obligations and facility exit costs as well as severance and related costs for the Ireland sites, included in the EMEA segment, which reduced “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

(2) Related to lease obligations and facility exit costs.

(3) Effect of foreign currency translation.

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with its exit and disposal activities, by plan, as of September 30, 2015 and December 31, 2014 (in thousands):

 

 

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

September 30, 2015

        

Short-term accrued restructuring liability (1)

     $ 140           $ 486           $ 626     

Long-term accrued restructuring liability (2)

     70           245           315     
  

 

 

    

 

 

    

 

 

 

Ending accrual at September 30, 2015

     $ 210           $ 731           $ 941     
  

 

 

    

 

 

    

 

 

 

December 31, 2014

        

Short-term accrued restructuring liability (1)

     $ 109           $ 521           $ 630     

Long-term accrued restructuring liability (2)

     203           725           928     
  

 

 

    

 

 

    

 

 

 

Ending accrual at December 31, 2014

     $ 312           $ 1,246           $ 1,558     
  

 

 

    

 

 

    

 

 

 

 

(1)

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

 

(2)

 

 

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

Fair Value (Tables)

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

 

                Fair Value Measurements at September 30, 2015 Using:  
         Balance at      Quoted Prices
in Active
Markets For
 Identical Assets 
       Significant  
Other
Observable
Inputs
     Significant
  Unobservable  
Inputs
 
          September 30, 2015       Level (1)      Level (2)      Level (3)  

Assets:

             

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

  (1)     $ 9,675          $ -              $ 9,675          $ -         

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

  (2)      5,810           5,810           -               -         

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

  (2)      1,590           1,590           -               -         

Guaranteed investment certificates

  (3)      86           -               86           -         
    

 

 

    

 

 

    

 

 

    

 

 

 
      $ 17,161          $ 7,400          $ 9,761          $ -         
    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

             

Long-term debt

  (4)     $ 70,000          $ -              $ 70,000          $ -         

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

  (1)      949           -               949           -         

Contingent consideration included in “Other long-term liabilities”

  (5)      6,048           -               -               6,048     
    

 

 

    

 

 

    

 

 

    

 

 

 
      $ 76,997          $ -              $ 70,949          $ 6,048     
    

 

 

    

 

 

    

 

 

    

 

 

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

Assets:

             

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

  (5)     $ 100,915          $ 100,915          $ -              $ -         

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

  (5)      10           10           -               -         

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

  (1)      1,489           -               1,489           -         

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

  (1)      4,060           -               4,060           -         

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

  (2)      5,589           5,589           -               -         

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

  (2)      1,363           1,363           -               -         

Guaranteed investment certificates

  (3)      79           -               79           -         
    

 

 

    

 

 

    

 

 

    

 

 

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

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

             

Long-term debt

  (4)     $ 75,000          $ -              $ 75,000          $ -         

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

  (1)      1,261           -               1,261           -         
    

 

 

    

 

 

    

 

 

    

 

 

 
      $ 76,261          $ -              $ 76,261          $ -         
    

 

 

    

 

 

    

 

 

    

 

 

 

(1) In the accompanying Condensed Consolidated Balance Sheets. See Note 6, Financial Derivatives.

(2) Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets. See Note 7, Investments Held in Rabbi Trust.

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

(4) The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 11, Borrowings.

(5) In the accompanying Condensed Consolidated Balance Sheets.

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

 

             Fair Value          

Balance at December 31, 2014

    $ -         

Acquisition

     6,000     

Payments

     -         

Imputed interest/adjustments

     -         

Effect of foreign currency

     48     
  

 

 

 

Balance at September 30, 2015

    $ 6,048     
  

 

 

Goodwill and Intangible Assets (Tables)

The following table presents the Company’s purchased intangible assets as of September 30, 2015 (in thousands):

 

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

Customer relationships

    $ 103,294          $ (55,414)         $ 47,880           8     

Trade names and trademarks

     11,701           (5,132)          6,569           8     

Non-compete agreements

     1,193           (1,193)          -               2     

Proprietary software

     850           (850)          -               2     

Favorable lease agreement

     449           (449)          -               2     

Content library

     504           (50)          454           2     
  

 

 

    

 

 

    

 

 

    
    $ 117,991          $ (63,088)         $ 54,903           8     
  

 

 

    

 

 

    

 

 

    

 

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

 

  

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

Customer relationships

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

Trade names and trademarks

     11,600           (4,128)          7,472           8     

Non-compete agreements

     1,209           (1,209)          -               2     

Proprietary software

     850           (850)          -               2     

Favorable lease agreement

     449           (449)          -               2     
  

 

 

    

 

 

    

 

 

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

 

 

    

 

 

    

 

 

    

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to September 30, 2015, is as follows (in thousands):

 

 Years Ending December 31,            Amount          

 

 

 2015 (remaining three months)

   $ 3,557     

 2016

     14,587     

 2017

     14,461     

 2018

     8,242     

 2019

     7,644     

 2020

     5,138     

 2021 and thereafter

     1,274     

Changes in goodwill consist of the following (in thousands):

 

          January 1, 2015                Acquisition (1)            Effect of Foreign 
Currency
       September 30, 2015    

Americas

    $ 193,831          $ -              $ (6,390)         $ 187,441     

EMEA

     -               9,574           (103)          9,471     
  

 

 

    

 

 

    

 

 

    

 

 

 
    $ 193,831          $ 9,574          $ (6,493)         $ 196,912     
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)  See Note 2, Acquisition of Qelp, for further information.

  

Financial Derivatives (Tables)

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

 

       September 30, 2015         December 31, 2014   

Deferred gains (losses) in AOCI

    $ (680)          $ (157)     

Tax on deferred gains (losses) in AOCI

     65            46      
  

 

 

    

 

 

 

Deferred gains (losses) in AOCI, net of taxes

    $ (615)          $ (111)     
  

 

 

    

 

 

 

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

    $ (680)        
  

 

 

    

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

 

             As of September 30, 2015                    As of December 31, 2014        

 Contract Type

   Notional
    Amount in    

USD
         Settle Through    
Date
   Notional
    Amount in    

USD
         Settle Through    
Date

 Cash flow hedges: (1)

           

 Options:

           

 Philippine Pesos

      $ 79,000          September 2016       $ 73,000          December 2015

 Forwards:

           

 Philippine Pesos

     500          October 2015      9,000          March 2015

 Costa Rican Colones

     46,300          August 2016      51,600          October 2015

 Hungarian Forints

     686          December 2015      -          -

 Romanian Leis

     2,664          December 2015      10,414          December 2015

 Net investment hedges: (2)

           

 Forwards:

           

 Euros

     63,470          March 2016      51,648          March 2016

 Non-designated hedges: (3)

           

 Forwards

     51,192          December 2015      64,541          March 2015

 

 (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 receivables and payables, and cash held in non-functional currencies.

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  
           September 30, 2015                  December 31, 2014        
     Fair Value      Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

     

Foreign currency forward and option contracts (1)

    $ 904          $ 974     

Derivatives designated as net investment hedging instruments under ASC 815:

     

Foreign currency forward contracts (1)

     8,545           -         

Foreign currency forward contracts (2)

     -               4,060     
  

 

 

    

 

 

 
     9,449           5,034     

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts (1)

     226           515     

    

     
  

 

 

    

 

 

 

Total derivative assets

    $ 9,675          $ 5,549     
  

 

 

    

 

 

 
     Derivative Liabilities  
     September 30, 2015      December 31, 2014  
     Fair Value      Fair Value  

Derivatives designated as cash flow hedging instruments under ASC 815:

     

Foreign currency forward and option contracts (3)

    $ 813          $ 406     

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts (3)

     136           855     

    

     
  

 

 

    

 

 

 

Total derivative liabilities

    $ 949          $ 1,261     
  

 

 

    

 

 

 

 

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

 

(2)

 

 

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

 

(3)

 

 

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 September 30, 2015 and 2014 (in thousands):

 

         Gain (Loss) Recognized in    
AOCI on Derivatives
(Effective Portion)
     Gain (Loss) Reclassified
From Accumulated AOCI
  Into “Revenues” (Effective  
Portion)
     Gain (Loss) Recognized in
 “Revenues” on Derivatives 
(Ineffective Portion and
Amount Excluded from
Effectiveness Testing)
 
     September 30,      September 30,      September 30,  
           2015                  2014                  2015                  2014                  2015                  2014        

Derivatives designated as cash flow hedging instruments under ASC 815:

                 

Foreign currency forward and option contracts

    $ (1,090)         $ (1,280)        $ 553          $ (652)         $ 11          $ (1)    

Derivatives designated as net investment hedging instruments under ASC 815:

                 

Foreign currency forward contracts

     (25)          3,999           -           -           -           -     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
    $ (1,115)         $ 2,719          $ 553          $ (652)         $ 11          $ (1)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

            Gain (Loss) Recognized    
       Statement of      on Derivatives  
     Operations    September 30,  
     Location          2015                  2014        

Derivatives not designated as hedging instruments under ASC 815:

        
   Other income      

Foreign currency forward contracts

   and (expense)     $ 1,727          $ (386)    

Foreign currency forward contracts

   Revenues      (8)          -         
     

 

 

    

 

 

 
       $ 1,719          $ (386)    
     

 

 

    

 

 

 

 

The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the nine months ended September 30, 2015 and 2014 (in thousands):

 

         Gain (Loss) Recognized in    
AOCI on Derivatives
(Effective Portion)
     Gain (Loss) Reclassified
From Accumulated AOCI
  Into “Revenues”  (Effective  
Portion)
     Gain (Loss) Recognized in
 “Revenues” on Derivatives 
(Ineffective  Portion and
Amount Excluded from
Effectiveness Testing)
 
     September 30,      September 30,      September 30,  
           2015                  2014                  2015                  2014                  2015                  2014        

Derivatives designated as cash flow hedging instruments under ASC 815:

                 

Foreign currency forward and option contracts

    $ 1,322          $ (3,823)         $ 1,881          $ (4,781)         $ 13          $ (5)    

Derivatives designated as net investment hedging instruments under ASC 815:

                 

Foreign currency forward contracts

     4,485           4,161           -           -           -           -     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
    $ 5,807          $ 338          $ 1,881          $ (4,781)         $ 13          $ (5)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

              Gain (Loss) Recognized      
       Statement of      on Derivatives  
     Operations    September 30,  
     Location          2015                  2014        

Derivatives not designated as hedging instruments under ASC 815:

        
   Other income      

Foreign currency forward contracts

   and (expense)     $ 1,630           $ (994)     

Foreign currency forward contracts

   Revenues      (4)           -          
     

 

 

    

 

 

 
       $ 1,626           $ (994)     
Investments Held in Rabbi Trust (Tables)

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

 

                 September 30, 2015                               December 31, 2014               
             Cost                  Fair Value                  Cost                  Fair Value      

Mutual funds

    $ 6,047          $ 7,400          $ 5,160          $ 6,952     
  

 

 

    

 

 

    

 

 

    

 

 

 

The mutual funds held in rabbi trust were 79% equity-based and 21% debt-based as of September 30, 2015. 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 September 30,      Nine Months Ended September 30,  
             2015                      2014                  2015                      2014          

Gross realized gains from sale of trading securities

    $ -               $ 153           $ 20           $ 156      

Gross realized (losses) from sale of trading securities

     -                -                (1)           -          

Dividend and interest income

     9            9            27            27      

Net unrealized holding gains (losses)

     (543)           (308)           (470)           (29)     
  

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income (losses)

    $ (534)          $ (146)          $ (424)          $ 154      
  

 

 

    

 

 

    

 

 

    

 

 

 
Deferred Revenue (Tables)
Components of Deferred Revenue

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

 

 

      September 30, 2015         December 31, 2014    

Future service

    $ 23,669          $ 25,222     

Estimated potential penalties and holdbacks

     7,167           9,023     
  

 

 

    

 

 

 
    $ 30,836          $ 34,245     
  

 

 

    

 

 

 
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):

 

      September 30, 2015         December 31, 2014    

Property grants

     $ 4,551           $ 5,110     

Lease grants

     393           -     

Employment grants

     198           207     
  

 

 

    

 

 

 

Total deferred grants

     5,142           5,317     

Less: Property grants - short-term (1)

     -           -     

Less: Lease grants - short-term (1)

     -           -     

Less: Employment grants - short-term (1)

     (198)          (207)    
  

 

 

    

 

 

 

Total long-term deferred grants (2)

     $ 4,944           $ 5,110     
  

 

 

    

 

 

 

 

(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)

Borrowings consist of the following (in thousands):

 

       September 30, 2015          December 31, 2014    

Revolving credit facility

    $ 70,000          $ 75,000     

Less: Current portion

     -             -       
  

 

 

    

 

 

 

Total long-term debt

    $ 70,000          $ 75,000     
  

 

 

    

 

 

 

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

 

           Three Months Ended September 30,                  Nine Months Ended September 30,        
     2015      2014      2015      2014  

Average daily utilization

    $ 65,435          $ 79,000          $ 69,952          $ 88,462     

Interest expense, including commitment fee (1) 

    $ 327          $ 339          $ 965          $ 1,088     

Weighted average interest rate

     2.0%          1.7%          1.9%          1.6%    

(1) Excludes the amortization of deferred loan fees.

           
Accumulated Other Comprehensive Income (Loss) (Tables)

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, 2014

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

Pre-tax amount

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

Tax (provision) benefit

     -             (2,385)          57           (17)          -             (2,345)    

Reclassification of (gain) loss to net income

     -             -             (35)          5,237           (49)          5,153     

Foreign currency translation

     120           -             (114)          (6)          -             -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance at December 31, 2014

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

Pre-tax amount

     (28,820)          4,485           -             1,335           74           (22,926)    

Tax (provision) benefit

     -             (1,602)          -             47           -             (1,555)    

Reclassification of (gain) loss to net income

     -             -             (31)          (1,921)          (46)          (1,998)    

Foreign currency translation

     7           -             (42)          35           -             -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance at September 30, 2015

     $         (50,889)          $         3,159           $         935           $         (615)          $         370           $         (47,040)    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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

 

         Three Months Ended    
September 30,
         Nine Months Ended    
September 30,
     Statements of Operations
     2015      2014      2015      2014      Location

Actuarial Gain (Loss) Related to Pension

              

Liability: (1)

              

Pre-tax amount

     $ 10           $ 12           $ 31           $ 37         Direct salaries and related costs    

Tax (provision) benefit

     -           -           -           -         Income taxes
  

 

 

    

 

 

    

 

 

    

 

 

    

Reclassification to net income

     10           12           31           37        

Gain (Loss) on Cash Flow Hedging

              

Instruments: (2)

              

Pre-tax amount

     564           (653)          1,894           (4,786)        Revenues

Tax (provision) benefit

     16           (5)          27           108         Income taxes
  

 

 

    

 

 

    

 

 

    

 

 

    

Reclassification to net income

     580           (658)          1,921           (4,678)       

Gain (Loss) on Post Retirement

              

Obligation: (1)

              

Pre-tax amount

     18           13           46           36         General and administrative

Tax (provision) benefit

     -           -           -           -         Income taxes
  

 

 

    

 

 

    

 

 

    

 

 

    

Reclassification to net income

     18           13           46           36        

Total reclassification of gain (loss) to net

              
  

 

 

    

 

 

    

 

 

    

 

 

    

income

     $             608           $             (633)          $             1,998           $             (4,605)       
  

 

 

    

 

 

    

 

 

    

 

 

    

(1)  See Note 16, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

(2)  See Note 6, 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                
Earnings Per Share (Tables)

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

 

       Three Months Ended September 30,           Nine Months Ended September 30,     
    2015     2014     2015     2014  
 

 

 

   

 

 

 

Basic:

       

Weighted average common shares outstanding

    41,783          42,704          41,992          42,721     

Diluted:

       

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

    301          133          345          123     
 

 

 

   

 

 

   

 

 

   

 

 

 

Total weighted average diluted shares outstanding

    42,084          42,837          42,337          42,844     
 

 

 

   

 

 

   

 

 

   

 

 

 

Anti-dilutive shares excluded from the diluted earnings per

share calculation

    14          30          25          4     
 

 

 

   

 

 

   

 

 

   

 

 

 

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

 

     Total Number                     Total Cost of  
     of Shares             Range of Prices Paid Per Share         Shares  
     Repurchased         Low     High         Repurchased      

 

   

 

 

   

 

 

   

 

 

 

Three Months Ended:

        

September 30, 2015

     354          $ 24.30          $ 25.00          $ 8,746     

September 30, 2014

     138          $ 19.82          $ 20.00          $ 2,745     

Nine Months Ended:

        

September 30, 2015

     854          $ 22.81          $ 25.00          $ 20,715     

September 30, 2014

     268          $ 19.82          $ 20.00          $ 5,350     
Commitments and Loss Contingency (Tables)

The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of September 30, 2015 (in thousands):

 

     Amount  

 

 

2015 (remaining three months)

     $ 1,038     

2016

     11,847     

2017

     11,909     

2018

     11,559     

2019

     11,140     

2020

     10,160     

2021 and thereafter

     19,270     
  

 

 

 

Total minimum payments required

     $             76,923     
  

 

 

 

The following is a schedule of the future minimum purchases remaining under the agreements as of September 30, 2015 (in thousands):

 

     Amount  

 

 

2015 (remaining three months)

     $ 2,987     

2016

     2,673     

2017

     1,669     

2018

     -     

2019

     -     

2020

     -     

2021 and thereafter

     -     
  

 

 

 

Total minimum payments required

     $             7,329     
  

 

 

 
Defined Benefit Pension Plan and Postretirement Benefits (Tables)

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

 

         Three Months Ended September 30,              Nine Months Ended September 30,      
     2015      2014      2015      2014  

Service cost

    $ 101          $ 101          $ 329          $ 302     

Interest cost

     31           31           102           92     

Recognized actuarial (gains)

     (10)          (13)          (31)          (37)    
  

 

 

    

 

 

    

 

 

    

 

 

 

Net periodic benefit cost

     $             122           $             119           $             400           $             357     
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

         Three Months Ended September 30,              Nine Months Ended September 30,      
     2015      2014      2015      2014  

401(k) plan contributions

    $           181          $           214          $           652          $           694     
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

      September 30, 2015        December 31, 2014   

Postretirement benefit obligation

    $ 22          $ 46     

Unrealized gains (losses) in AOCI (1)

    $ 370          $ 342     

(1)  Unrealized gains (losses) are impacted by changes in discount rates related to the

     postretirement obligation.

  

  

Stock-Based Compensation (Tables)

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

 

         Three Months Ended September 30,              Nine Months Ended September 30,      
     2015      2014      2015      2014  

Stock-based compensation (expense) (1)

     $ (2,600)          $ (2,738)          $ (5,884)          $ (4,429)    

Income tax benefit (2)

     992           958           2,207           1,550     

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

     40           -           209           (30)    

 

  (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.

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

 

         Nine Months Ended September 30,      
     2015      2014  

Expected volatility

     34.1%          38.9%    

Weighted-average volatility

     34.1%          38.9%    

Expected dividend rate

     0.0%          0.0%    

Expected term (in years)

     5.0           5.0     

Risk-free rate

     1.6%          1.7%    

The following table summarizes SARs activity as of September 30, 2015 and for the nine 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, 2015

     959         $ -            

Granted

     217         $ -            

Exercised

     (604)        $ -            

Forfeited or expired

     -           $ -            
  

 

 

          

Outstanding at September 30, 2015

     572         $ -            7.9         $ 2,473     
  

 

 

    

 

 

    

 

 

    

 

 

 

Vested or expected to vest at September 30, 2015

     572         $ -            7.9         $ 2,473     
  

 

 

    

 

 

    

 

 

    

 

 

 

Exercisable at September 30, 2015

     148         $ -            5.2         $ 855     
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

         Nine Months Ended September 30,      
     2015      2014  

Number of SARs granted

     217           246     

Weighted average grant-date fair value per SAR

       $ 8.17             $ 7.20     

Intrinsic value of SARs exercised

       $ 4,792             $ 333     

Fair value of SARs vested

       $ 1,302             $ 1,553     

The following table summarizes nonvested SARs activity as of September 30, 2015 and for the nine months then ended:

 

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

 

 

Nonvested at January 1, 2015

     411         $ 6.61     

Granted

     217         $ 8.17     

Vested

     (204)        $ 6.41     

Forfeited or expired

     -           $ -     
  

 

 

    

Nonvested at September 30, 2015

     424         $ 7.50     
  

 

 

    

The following table summarizes nonvested restricted shares/RSUs activity as of September 30, 2015 and for the nine months then ended:

 

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

 

 

Nonvested at January 1, 2015

     1,194         $ 16.80     

Granted

     441         $ 25.06     

Vested

     (125)        $ 16.10     

Forfeited or expired

     (264)        $ 15.71     
  

 

 

    

Nonvested at September 30, 2015

     1,246         $ 20.03     
  

 

 

    

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

 

         Nine Months Ended September 30,      
     2015      2014  

Number of restricted shares/RSUs granted

     441           500     

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

       $ 25.06             $ 19.77     

Fair value of restricted shares/RSUs vested

       $ 2,019             $ 895     

The following table summarizes nonvested common stock share award activity as of September 30, 2015 and for the nine months then ended:

 

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

 

 

Nonvested at January 1, 2015

     12         $ 20.24     

Granted

     32         $ 24.70     

Vested

     (25)        $ 23.08     

Forfeited or expired

     -           $ -     
  

 

 

    

Nonvested at September 30, 2015

     19         $ 24.06     
  

 

 

    

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

 

         Nine Months Ended September 30,      
     2015      2014  

Number of share awards granted

     32           36     

Weighted average grant-date fair value per share award

    $ 24.70          $  20.15     

Fair value of share awards vested

    $ 580          $ 470     

The following table summarizes nonvested common stock activity as of September 30, 2015 and for the nine months then ended:

 

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

 

 

Nonvested at January 1, 2015

     5         $ 17.88     

Granted

     8         $ 24.83     

Vested

     (10)        $ 22.91     

Forfeited or expired

     -           $ -     
  

 

 

    

Nonvested at September 30, 2015

     3         $ 19.36     
  

 

 

    

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

 

         Nine Months Ended September 30,      
     2015      2014  

Number of shares of common stock granted

     8           10     

Weighted average grant-date fair value per common stock

     $ 24.83           $ 20.34     

Fair value of common stock vested

     $ 235           $ 198     

Cash used to settle the obligation

     $ 65           $ 518     
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 September 30, 2015:

           

Revenues

    $ 257,421          $ 60,481          $ 22          $ 317,924     

Percentage of revenues

     81.0%         19.0%         0.0%         100.0%   

Depreciation, net

    $ 9,474          $ 1,161          $ 303          $ 10,938     

Amortization of intangibles

    $ 3,397          $ 241          $ -          $ 3,638     

Income (loss) from operations

    $ 33,541          $ 4,629          $ (13,663)         $ 24,507     

Other (expense), net

           (1,187)          (1,187)    

Income taxes

           (3,310)          (3,310)    
           

 

 

 

Net income

             $ 20,010     
           

 

 

 

Total assets as of September 30, 2015

    $     1,062,488          $       1,420,022          $       (1,537,895)         $ 944,615     
  

 

 

    

 

 

    

 

 

    

 

 

 

Three Months Ended September 30, 2014:

           

Revenues

    $ 267,421          $ 65,250          $ -          $ 332,671     

Percentage of revenues

     80.4%         19.6%         0.0%         100.0%   

Depreciation, net

    $ 10,304          $ 1,212          $ -          $ 11,516     

Amortization of intangibles

    $ 3,597          $ -          $ -          $ 3,597     

Income (loss) from operations

    $ 28,294          $ 6,964          $ (13,166)         $ 22,092     

Other (expense), net

           (621)          (621)    

Income taxes

           (4,833)          (4,833)    
           

 

 

 

Net income

             $ 16,638     
           

 

 

 

Total assets as of September 30, 2014

    $ 1,091,661          $ 1,365,437          $ (1,518,824)         $ 938,274     
  

 

 

    

 

 

    

 

 

    

 

 

 

 

          Americas                 EMEA                   Other (1)                Consolidated    

Nine Months Ended September 30, 2015:

       

Revenues

   $ 771,276         $           177,728         $ 58        $ 949,062     

Percentage of revenues

    81.3%         18.7%         0.0%        100.0%    

Depreciation, net

   $ 28,659         $ 3,388         $ 957        $ 33,004     

Amortization of intangibles

   $ 10,263         $ 241         $       $ 10,504     

Income (loss) from operations

   $ 94,751         $ 11,386         $ (40,872)       $ 65,265     

Other (expense), net

        (2,915)        (2,915)    

Income taxes

        (13,789)        (13,789)    
       

 

 

 

Net income

         $ 48,561     
       

 

 

 

Nine Months Ended September 30, 2014:

       

Revenues

   $ 785,330         $ 192,268         $       $ 977,598     

Percentage of revenues

    80.3%         19.7%         0.0%        100.0%    

Depreciation, net

   $ 30,552         $ 3,584         $       $ 34,136     

Amortization of intangibles

   $ 10,907         $ -         $       $ 10,907     

Income (loss) from operations

   $ 72,076         $ 11,409         $ (36,488)       $ 46,997     

Other (expense), net

        (940)        (940)    

Income taxes

        (10,769)        (10,769)    
       

 

 

 

Net income

         $ 35,288     
       

 

 

 

 

  (1)

Other items (including corporate and other costs, impairment costs, other income and expense, and income taxes) are shown for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the three and nine months ended September 30, 2015 and 2014. Inter-segment revenues are not material to the Americas and EMEA segment results. The Company evaluates the performance of its geographic segments based on revenues and income (loss) from operations, and does not include segment assets or other income and expense items for management reporting purposes.

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

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

 

       Three Months Ended September 30,          Nine Months Ended September 30,    
               2015                          2014                          2015                          2014            

Foreign currency transaction gains (losses)

    $ (1,926)         $ 13          $ (2,951)         $ 644     

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

     1,727           (386)          1,630           (994)    

Other miscellaneous income (expense)

     (672)          (33)          (546)          208     
  

 

 

    

 

 

    

 

 

    

 

 

 
    $ (871)         $ (406)         $ (1,867)         $ (142)    
  

 

 

    

 

 

    

 

 

    

 

 

 
Overview and Basis of Presentation - Additional Information (Detail)
9 Months Ended
Sep. 30, 2015
Segment
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
Number of reportable segments
Qelp [Member]
 
Organization Consolidation And Presentation Of Financial Statements [Line Items]
 
Acquisition date
Jul. 02, 2015 
Acquisition of Qelp - Additional Information (Detail) (Qelp [Member])
0 Months Ended 9 Months Ended
Jul. 2, 2015
USD ($)
Sep. 30, 2015
EUR (€)
Jul. 2, 2015
USD ($)
Business Acquisition [Line Items]
 
 
 
Consideration by cash
$ 9,885,000 
 
 
Funds placed in escrow as security for indemnifications
 
 
900,000 
Maximum amount of contingent consideration
 
€ 10,000,000 
 
Contingent consideration expected payment period
 
3 years 
 
Contingent consideration description
 
The contingent purchase price to be paid over a three year period is based on achieving targets tied to revenues and earnings before interest, income taxes, depreciation and amortization ("EBITDA") for the years ended December 31, 2016, 2017 and 2018, not to exceed EUR 10.0 million. 
 
Acquisition of Qelp - Summary of Estimated Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Sep. 30, 2015
EMEA [Member]
Jul. 31, 2015
Qelp [Member]
Jul. 2, 2015
Qelp [Member]
EMEA [Member]
Business Acquisition [Line Items]
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
$ 450 
Receivables
 
 
 
 
1,541 
Prepaid expenses
 
 
 
 
24 
Total current assets
 
 
 
 
2,015 
Property and equipment
 
 
 
 
2,168 
Goodwill
196,912 
193,831 
9,471 
9,400 
9,574 
Intangibles
 
 
 
 
6,000 
Deferred charges and other assets
 
 
 
 
55 
Short-term debt
 
 
 
 
(323)
Accrued employee compensation and benefits
 
 
 
 
(207)
Income taxes payable
 
 
 
 
(62)
Deferred revenue
 
 
 
 
(967)
Other accrued expenses and current liabilities
 
 
 
 
(1,030)
Total current liabilities
 
 
 
 
(2,589)
Other long-term liabilities
 
 
 
 
(1,403)
Purchase price, total
 
 
 
$ 15,600 
$ 15,820 
Acquisition of Qelp - Summary of Purchased Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Sep. 30, 2015
Customer Relationships [Member]
Dec. 31, 2014
Customer Relationships [Member]
Sep. 30, 2015
Trade Name and Trademarks [Member]
Dec. 31, 2014
Trade Name and Trademarks [Member]
Sep. 30, 2015
Content Library [Member]
Jul. 2, 2015
Qelp [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Customer Relationships [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Customer Relationships [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Trade Name and Trademarks [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Trade Name and Trademarks [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Content Library [Member]
EMEA [Member]
Jul. 2, 2015
Qelp [Member]
Content Library [Member]
EMEA [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount Assigned
 
 
 
 
 
 
 
 
$ 6,000 
 
$ 5,400 
 
$ 100 
 
$ 500 
Weighted Average Amortization Period (years)
8 years 
8 years 
8 years 
8 years 
8 years 
8 years 
2 years 
7 years 
 
7 years 
 
3 years 
 
2 years 
 
Acquisition of Qelp - Revenues and Earnings of Acquired Entity Since Acquisition Date (Detail) (Qelp [Member], EMEA [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2015
Qelp [Member] |
EMEA [Member]
 
Business Acquisition [Line Items]
 
Revenues
$ 1,158 
Net (loss)
$ (362)
Acquisition of Qelp - Merger and Integration Costs (Detail) (Qelp [Member], Other Items [Member], General and Administrative [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2015
Qelp [Member] |
Other Items [Member] |
General and Administrative [Member]
 
 
Business Acquisition [Line Items]
 
 
Transaction costs
$ 77 
$ 455 
Costs Associated with Exit or Disposal Activities - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Employees
Restructuring and Related Activities [Abstract]
 
Estimated employee rationalization associated with exit or disposal activities
800 
Cash payment related to restructuring plan
$ 15.1 
Lease termination date
Feb. 28, 2017 
Costs Associated with Exit or Disposal Activities - Cumulative Costs Expected and Incurred as a Result of Exit Plans (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
$ 21,139 
Lease Obligations and Facility Exit Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
10,027 
Severance and Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
6,042 
Legal-Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
110 
Non-cash Impairment Charges [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
4,960 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
1,845 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member] |
Lease Obligations and Facility Exit Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
1,365 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member] |
Non-cash Impairment Charges [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
480 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
6,460 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member] |
Lease Obligations and Facility Exit Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
19 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member] |
Severance and Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
5,857 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member] |
Legal-Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
110 
Fourth Quarter 2011 Exit Plan [Member] |
EMEA [Member] |
Non-cash Impairment Charges [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
474 
Fourth Quarter 2010 Exit Plan [Member] |
EMEA [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
2,258 
Fourth Quarter 2010 Exit Plan [Member] |
EMEA [Member] |
Lease Obligations and Facility Exit Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
1,914 
Fourth Quarter 2010 Exit Plan [Member] |
EMEA [Member] |
Severance and Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
185 
Fourth Quarter 2010 Exit Plan [Member] |
EMEA [Member] |
Non-cash Impairment Charges [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
159 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
10,576 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member] |
Lease Obligations and Facility Exit Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
6,729 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member] |
Non-cash Impairment Charges [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Estimated total costs, some of which may have already been incurred, under the restructuring plan
$ 3,847 
Costs Associated with Exit or Disposal Activities - Summary of Accrued Liability Associated with Company's Exit Plans (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Jul. 1, 2015
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Dec. 31, 2013
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
Ending accrual
$ 941 
$ 1,150 
$ 1,558 
$ 1,788 
$ 2,111 
$ 2,974 
Other Accrued Expenses and Current Liabilities [Member]
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
Short-term accrued restructuring liability
626 
 
630 
 
 
 
Other Long-Term Liabilities [Member]
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
Long-term accrued restructuring liability
315 
 
928 
 
 
 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member]
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
Ending accrual
210 
 
312 
 
 
 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
Short-term accrued restructuring liability
140 
 
109 
 
 
 
Fourth Quarter 2011 Exit Plan [Member] |
Americas [Member] |
Other Long-Term Liabilities [Member]
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
Long-term accrued restructuring liability
70 
 
203 
 
 
 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member]
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
Ending accrual
731 
 
1,246 
 
 
 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
Short-term accrued restructuring liability
486 
 
521 
 
 
 
Third Quarter 2010 Exit Plan [Member] |
Americas [Member] |
Other Long-Term Liabilities [Member]
 
 
 
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
Long-term accrued restructuring liability
$ 245 
 
$ 725 
 
 
 
Fair Value - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Fair value discount rate
14.00% 
Qelp [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Expected future value of contingent consideration
$ 9.1 
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Assets:
 
 
Foreign currency forward and option contracts
$ 9,675 
$ 5,549 
Total assets
17,161 
113,505 
Liabilities:
 
 
Long-term debt
70,000 
75,000 
Foreign currency forward and option contracts
949 
1,261 
Total liabilities
76,997 
76,261 
Other Long-Term Liabilities [Member]
 
 
Liabilities:
 
 
Contingent consideration included in "Other long-term liabilities"
6,048 
 
Foreign Currency Forward and Option Contracts [Member] |
Other Current Assets [Member]
 
 
Assets:
 
 
Foreign currency forward and option contracts
9,675 
1,489 
Foreign Currency Forward and Option Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
Liabilities:
 
 
Foreign currency forward and option contracts
949 
1,261 
Equity Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member] |
Other Current Assets [Member]
 
 
Assets:
 
 
Investments held in a rabbi trust for the Deferred Compensation Plan
5,810 
5,589 
Debt Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member] |
Other Current Assets [Member]
 
 
Assets:
 
 
Investments held in a rabbi trust for the Deferred Compensation Plan
1,590 
1,363 
Guaranteed Investment Certificates [Member] |
Deferred Charges and Other Assets [Member]
 
 
Assets:
 
 
"Money market funds, open-end mutual funds and guaranteed investment certificates included in "Deferred charges and other assets"
86 
79 
Money Market Funds and Open-End Mutual Funds [Member]
 
 
Assets:
 
 
Money market funds and open-end mutual funds included in "Cash and cash equivalents"
 
100,915 
"Money market funds, open-end mutual funds and guaranteed investment certificates included in "Deferred charges and other assets"
 
10 
Foreign Currency Forward Contracts [Member] |
Deferred Charges and Other Assets [Member]
 
 
Assets:
 
 
Foreign currency forward and option contracts
 
4,060 
Quoted Prices in Active Markets For Identical Assets Level 1 [Member]
 
 
Assets:
 
 
Total assets
7,400 
107,877 
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] |
Equity Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member] |
Other Current Assets [Member]
 
 
Assets:
 
 
Investments held in a rabbi trust for the Deferred Compensation Plan
5,810 
5,589 
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] |
Debt Investments Held in a Rabbi Trust for the Deferred Compensation Plan [Member] |
Other Current Assets [Member]
 
 
Assets:
 
 
Investments held in a rabbi trust for the Deferred Compensation Plan
1,590 
1,363 
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] |
Money Market Funds and Open-End Mutual Funds [Member]
 
 
Assets:
 
 
Money market funds and open-end mutual funds included in "Cash and cash equivalents"
 
100,915 
"Money market funds, open-end mutual funds and guaranteed investment certificates included in "Deferred charges and other assets"
 
10 
Significant Other Observable Inputs Level 2 [Member]
 
 
Assets:
 
 
Total assets
9,761 
5,628 
Liabilities:
 
 
Long-term debt
70,000 
75,000 
Total liabilities
70,949 
76,261 
Significant Other Observable Inputs Level 2 [Member] |
Foreign Currency Forward and Option Contracts [Member] |
Other Current Assets [Member]
 
 
Assets:
 
 
Foreign currency forward and option contracts
9,675 
1,489 
Significant Other Observable Inputs Level 2 [Member] |
Foreign Currency Forward and Option Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
Liabilities:
 
 
Foreign currency forward and option contracts
949 
1,261 
Significant Other Observable Inputs Level 2 [Member] |
Guaranteed Investment Certificates [Member] |
Deferred Charges and Other Assets [Member]
 
 
Assets:
 
 
"Money market funds, open-end mutual funds and guaranteed investment certificates included in "Deferred charges and other assets"
86 
79 
Significant Other Observable Inputs Level 2 [Member] |
Foreign Currency Forward Contracts [Member] |
Deferred Charges and Other Assets [Member]
 
 
Assets:
 
 
Foreign currency forward and option contracts
 
4,060 
Significant Unobservable Inputs Level 3 [Member]
 
 
Liabilities:
 
 
Total liabilities
6,048 
 
Significant Unobservable Inputs Level 3 [Member] |
Other Long-Term Liabilities [Member]
 
 
Liabilities:
 
 
Contingent consideration included in "Other long-term liabilities"
$ 6,048 
 
Fair Value - Rollforward of Fair Value of Contingent Consideration (Detail) (Qelp [Member], USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Jul. 2, 2015
Qelp [Member]
 
 
Business Acquisition, Contingent Consideration [Line Items]
 
 
Contingent consideration, Beginning Balance
$ 0 
$ 6,000 
Acquisition
6,000 
 
Cash payments
 
Imputed interest/adjustments
 
Effect of foreign currency
48 
 
Contingent Consideration, Ending Balance
$ 6,048 
$ 6,000 
Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
$ 117,991 
$ 114,827 
Accumulated Amortization
(63,088)
(54,207)
Net Intangibles
54,903 
60,620 
Weighted Average Amortization Period (years)
8 years 
8 years 
Customer Relationships [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
103,294 
100,719 
Accumulated Amortization
(55,414)
(47,571)
Net Intangibles
47,880 
53,148 
Weighted Average Amortization Period (years)
8 years 
8 years 
Trade Name and Trademarks [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
11,701 
11,600 
Accumulated Amortization
(5,132)
(4,128)
Net Intangibles
6,569 
7,472 
Weighted Average Amortization Period (years)
8 years 
8 years 
Non-Compete Agreements [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
1,193 
1,209 
Accumulated Amortization
(1,193)
(1,209)
Weighted Average Amortization Period (years)
2 years 
2 years 
Proprietary Software [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
850 
850 
Accumulated Amortization
(850)
(850)
Weighted Average Amortization Period (years)
2 years 
2 years 
Favorable Lease Agreement [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
449 
449 
Accumulated Amortization
(449)
(449)
Weighted Average Amortization Period (years)
2 years 
2 years 
Content Library [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Gross Intangibles
504 
 
Accumulated Amortization
(50)
 
Net Intangibles
$ 454 
 
Weighted Average Amortization Period (years)
2 years 
 
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
2015 (remaining three months)
$ 3,557 
2016
14,587 
2017
14,461 
2018
8,242 
2019
7,644 
2020
5,138 
2021 and thereafter
$ 1,274 
Goodwill and Intangible Assets - Changes in Goodwill (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Goodwill [Line Items]
 
Beginning Balance, Goodwill Net
$ 193,831 
Acquisition
9,574 
Effect of Foreign Currency
(6,493)
Ending Balance, Goodwill Net
196,912 
Americas [Member]
 
Goodwill [Line Items]
 
Beginning Balance, Goodwill Net
193,831 
Effect of Foreign Currency
(6,390)
Ending Balance, Goodwill Net
187,441 
EMEA [Member]
 
Goodwill [Line Items]
 
Acquisition
9,574 
Effect of Foreign Currency
(103)
Ending Balance, Goodwill Net
$ 9,471 
Goodwill and Intangible Assets - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 9 Months Ended
Sep. 30, 2015
Reporting_Unit
Dec. 31, 2014
Sep. 30, 2015
Qelp [Member]
Jul. 31, 2015
Qelp [Member]
Goodwill [Line Items]
 
 
 
 
Number of reporting units
 
 
 
Number of reporting units, fair value in excess of carrying value
 
 
 
Acquisition date
 
 
Jul. 02, 2015 
 
Purchase price of acquisition, carrying value
 
 
 
$ 15,600 
Goodwill
$ 196,912 
$ 193,831 
 
$ 9,400 
Financial Derivatives - Additional Information (Detail) (USD $)
9 Months Ended 12 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
 
Maximum period of foreign currency hedge contracts
180 days 
 
Maximum amount of loss due to credit risk
$ 9,700,000 
$ 5,500,000 
Total net settlement amount asset positions
9,200,000 
4,400,000 
Total net settlement amount liability positions
$ 500,000 
$ 100,000 
Financial Derivatives - Outstanding Foreign Currency Forward Contracts and Options (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Option Contracts [Member] |
Philippine Pesos [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
$ 79,000 
$ 73,000 
Settle Through Date
Sep. 30, 2016 
Dec. 31, 2015 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Forwards [Member] |
Philippine Pesos [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
500 
9,000 
Settle Through Date
Oct. 31, 2015 
Mar. 31, 2015 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Forwards [Member] |
Costa Rican Colones [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
46,300 
51,600 
Settle Through Date
Aug. 31, 2016 
Oct. 31, 2015 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Forwards [Member] |
Hungarian Forints [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
686 
 
Settle Through Date
Dec. 31, 2015 
 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Forwards [Member] |
Romanian Leis [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
2,664 
10,414 
Settle Through Date
Dec. 31, 2015 
Dec. 31, 2015 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Net Investment Hedges [Member] |
Forwards [Member] |
Euros [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
63,470 
51,648 
Settle Through Date
Mar. 31, 2016 
Mar. 31, 2016 
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Forwards [Member]
 
 
Derivative [Line Items]
 
 
Notional Amount
$ 51,192 
$ 64,541 
Settle Through Date
Dec. 31, 2015 
Mar. 31, 2015 
Financial Derivatives - Derivative Instruments Fair Value (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
$ 9,675 
$ 5,549 
Derivative Liabilities
949 
1,261 
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Option Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
9,449 
5,034 
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
226 
515 
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liabilities
136 
855 
Cash Flow Hedges [Member] |
Foreign Currency Forward Contracts [Member] |
Other Accrued Expenses and Current Liabilities [Member] |
Option Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Liabilities
813 
406 
Cash Flow Hedges [Member] |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Current Assets [Member] |
Option Contracts [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
904 
974 
Net Investment Hedges [Member] |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
8,545 
 
Net Investment Hedges [Member] |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member] |
Deferred Charges and Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Assets
 
$ 4,060 
Financial Derivatives - Effect of Company's Derivative Instruments (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
$ (1,115)
$ 2,719 
$ 5,807 
$ 338 
Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)
553 
(652)
1,881 
(4,781)
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
11 
(1)
13 
(5)
Gain (Loss) Recognized on Derivatives
1,719 
(386)
1,626 
(994)
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Foreign Currency Forward Contracts [Member] |
Option Contracts [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
(1,090)
(1,280)
1,322 
(3,823)
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Net Investment Hedges [Member] |
Foreign Currency Forward Contracts [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
(25)
3,999 
4,485 
4,161 
Revenues [Member] |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] |
Cash Flow Hedges [Member] |
Foreign Currency Forward Contracts [Member] |
Option Contracts [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)
553 
(652)
1,881 
(4,781)
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
11 
(1)
13 
(5)
Revenues [Member] |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain (Loss) Recognized on Derivatives
(8)
 
(4)
 
Other Income (Expense) |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] |
Foreign Currency Forward Contracts [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain (Loss) Recognized on Derivatives
$ 1,727 
$ (386)
$ 1,630 
$ (994)
Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) (Mutual Funds [Member], USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Mutual funds, Cost
$ 6,047 
$ 5,160 
Other Current Assets [Member]
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
Mutual funds, Fair Value
$ 7,400 
$ 6,952 
Investments Held in Rabbi Trust - Additional Information (Detail)
Sep. 30, 2015
Equity-Based Securities [Member]
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
Mutual funds held in rabbi trust
79.00% 
Debt-Based Securities [Member]
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
Mutual funds held in rabbi trust
21.00% 
Investments Held in Rabbi Trust - Components of Investment Income (Losses), Included in Other Income (Expense) in Accompanying Consolidated Statements of Operations (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
 
 
Gross realized gains from sale of trading securities
 
$ 153 
$ 20 
$ 156 
Gross realized (losses) from sale of trading securities
 
 
(1)
 
Dividend and interest income
27 
27 
Net unrealized holding gains (losses)
(543)
(308)
(470)
(29)
Other Income (Expense)
 
 
 
 
Schedule of Trading Securities and Other Trading Assets [Line Items]
 
 
 
 
Net investment income (losses)
$ (534)
$ (146)
$ (424)
$ 154 
Property and Equipment - Additional Information (Detail) (USD $)
9 Months Ended 1 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2015
Jul. 31, 2015
Perry County Kentucky Buchanan County Virginia And Wise Virginia Facilities [Member]
Apr. 30, 2015
Perry County Kentucky Buchanan County Virginia And Wise Virginia Facilities [Member]
Feb. 28, 2015
Perry County Kentucky Buchanan County Virginia And Wise Virginia Facilities [Member]
Sep. 30, 2015
Perry County Kentucky Buchanan County Virginia And Wise Virginia Facilities [Member]
General and Administrative [Member]
Sep. 30, 2015
Perry County Kentucky Buchanan County Virginia And Wise Virginia Facilities [Member]
General and Administrative [Member]
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
Estimated amount of losses to be recovered
 
 
 
$ 1,600,000 
 
 
Insurance recoveries for clean up and repairs
 
1,100,000 
500,000 
 
 
 
Net gain on insurance settlement
$ 919,000 
 
 
 
$ 900,000 
$ 900,000 
Deferred Revenue - Components of Deferred Revenue (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Deferred Revenue Disclosure [Abstract]
 
 
Future service
$ 23,669 
$ 25,222 
Estimated potential penalties and holdbacks
7,167 
9,023 
Deferred revenue
$ 30,836 
$ 34,245 
Deferred Grants - Schedule of Deferred Grants (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
 
 
Total deferred grants
$ 5,142 
$ 5,317 
Less: Property grants - short-term
Less: Lease grants - short-term
Less: Employment grants - short-term
(198)
(207)
Total long-term deferred grants
4,944 
5,110 
Total deferred grants
5,142 
5,317 
Other Long-Term Liabilities [Member]
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Property grants
4,551 
5,110 
Lease grants
393 
 
Other Accrued Expenses and Current Liabilities [Member]
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Employment grants
$ 198 
$ 207 
Borrowings - Additional Information (Detail) (USD $)
9 Months Ended 1 Months Ended
Sep. 30, 2015
2015 Credit Agreement [Member]
May 31, 2015
2015 Credit Agreement [Member]
May 12, 2015
2015 Credit Agreement [Member]
Sep. 30, 2015
2015 Credit Agreement [Member]
Non-Voting Capital Stock Direct Foreign Subsidiaries [Member]
Sep. 30, 2015
2015 Credit Agreement [Member]
Voting Capital Stock Direct Foreign Subsidiaries [Member]
May 31, 2015
2012 Credit Agreement [Member]
Sep. 30, 2015
2012 Credit Agreement [Member]
May 3, 2012
2012 Credit Agreement [Member]
May 12, 2015
2015 Credit Agreement Alternate-Currency Sub-Facility [Member]
May 12, 2015
2015 Credit Agreement Swingline Sub-Facility [Member]
May 12, 2015
2015 Credit Agreement Letter of Credit Sub-Facility [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
$ 440,000,000 
 
 
 
 
$ 245,000,000 
$ 200,000,000 
$ 10,000,000 
$ 35,000,000 
Line of credit facility, expiration date
May 12, 2020 
 
 
 
 
 
 
 
 
 
 
Varying installments due
 
 
 
 
 
 
 
 
 
 
Credit agreement interest rate description
Borrowings under the 2015 Credit Agreement will bear interest at either LIBOR or the base rate plus, in each case, an applicable margin based on the Company’s leverage ratio. The applicable interest rate will be determined quarterly based on the Company’s leverage ratio at such time. The base rate is a rate per annum equal to the greatest of (i) the rate of interest established by KeyBank, from time to time, as its “prime rate”; (ii) the Federal Funds effective rate in effect from time to time, plus 1/2 of 1% per annum; and (iii) the then-applicable LIBOR rate for one month interest periods, plus 1.00%. Swingline loans will bear interest only at the base rate plus the base rate margin. 
 
 
 
 
 
 
 
 
 
 
Fixed component added to federal fund effective rate to compute base rate
0.50% 
 
 
 
 
 
 
 
 
 
 
Fixed component added to LIBOR to compute base rate
1.00% 
 
 
 
 
 
 
 
 
 
 
Commitment fee
0.125% 
 
 
 
 
 
 
 
 
 
 
Credit agreement customary fees description
The Company is required to pay certain customary fees, including a commitment fee of 0.125%, which is due quarterly in arrears and calculated on the average unused amount of the 2015 Credit Agreement. 
 
 
 
 
 
 
 
 
 
 
Percentage of capital stock pledged under credit agreement
 
 
 
100.00% 
65.00% 
 
 
 
 
 
 
Underwriting fee for credit agreement
 
900,000 
 
 
 
 
400,000 
 
 
 
 
Deferred loan fees expensed
 
 
 
 
 
$ 100,000 
 
 
 
 
 
Borrowings - Components of Borrowings (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Line of Credit Facility [Line Items]
 
 
Total long-term debt
$ 70,000 
$ 75,000 
Revolving Credit Facility [Member]
 
 
Line of Credit Facility [Line Items]
 
 
Revolving credit facility
70,000 
75,000 
Less: Current portion
Total long-term debt
$ 70,000 
$ 75,000 
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance, accumulated other comprehensive income (loss)
$ (20,561)
$ 7,997 
Pre-tax amount
(22,926)
(31,366)
Tax (provision) benefit
(1,555)
(2,345)
Reclassification of (gain) loss to net income
(1,998)
5,153 
Ending balance, accumulated other comprehensive income (loss)
(47,040)
(20,561)
Foreign Currency Translation Gain (Loss) [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance, accumulated other comprehensive income (loss)
(22,076)
12,751 
Pre-tax amount
(28,820)
(34,947)
Foreign currency translation
120 
Ending balance, accumulated other comprehensive income (loss)
(50,889)
(22,076)
Unrealized Gain (Loss) on Net Investment Hedges [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance, accumulated other comprehensive income (loss)
276 
(3,683)
Pre-tax amount
4,485 
6,344 
Tax (provision) benefit
(1,602)
(2,385)
Ending balance, accumulated other comprehensive income (loss)
3,159 
276 
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance, accumulated other comprehensive income (loss)
1,008 
1,150 
Pre-tax amount
 
(50)
Tax (provision) benefit
 
57 
Reclassification of (gain) loss to net income
(31)
(35)
Foreign currency translation
(42)
(114)
Ending balance, accumulated other comprehensive income (loss)
935 
1,008 
Unrealized Gain (Loss) on Cash Flow Hedging Instruments [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance, accumulated other comprehensive income (loss)
(111)
(2,535)
Pre-tax amount
1,335 
(2,790)
Tax (provision) benefit
47 
(17)
Reclassification of (gain) loss to net income
(1,921)
5,237 
Foreign currency translation
35 
(6)
Ending balance, accumulated other comprehensive income (loss)
(615)
(111)
Unrealized Gain (Loss) on Post Retirement Obligation [Member]
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Beginning balance, accumulated other comprehensive income (loss)
342 
314 
Pre-tax amount
74 
77 
Reclassification of (gain) loss to net income
(46)
(49)
Ending balance, accumulated other comprehensive income (loss)
$ 370 
$ 342 
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 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Pre-tax amount
$ 23,320 
$ 21,471 
$ 62,350 
$ 46,057 
Tax (provision) benefit
3,310 
4,833 
13,789 
10,769 
Reclassification of gain (loss) to net income
20,010 
16,638 
48,561 
35,288 
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
608 
(633)
1,998 
(4,605)
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
10 
12 
31 
37 
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
16 
(5)
27 
108 
Reclassification of gain (loss) to net income
580 
(658)
1,921 
(4,678)
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
18 
13 
46 
36 
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
10 
12 
31 
37 
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
564 
(653)
1,894 
(4,786)
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
$ 18 
$ 13 
$ 46 
$ 36 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Dec. 31, 2014
Income Tax [Line Items]
 
 
 
 
 
Effective rate of tax
14.20% 
22.50% 
22.10% 
23.40% 
 
Recognition of previous unrecognized tax benefit
$ 2.2 
 
 
 
 
Reversal of valuation allowance on deferred tax assets
1.3 
 
1.3 
 
 
Statutory federal income tax rate
35.00% 
 
35.00% 
 
 
Recognition of previous unrecognized tax benefit
2.2 
 
2.2 
 
 
Unrecognized tax benefits
8.7 
 
8.7 
 
13.3 
Amount of mandatory security deposit paid related to Notice of Objection
13.9 
 
13.9 
 
15.9 
Deferred Charges and Other Assets [Member]
 
 
 
 
 
Income Tax [Line Items]
 
 
 
 
 
Unrecognized tax benefits
 
 
 
 
2.7 
Long-Term Income Tax Liabilities [Member]
 
 
 
 
 
Income Tax [Line Items]
 
 
 
 
 
Unrecognized tax benefits
$ 8.7 
 
$ 8.7 
 
$ 10.6 
Income Taxes - Summary of Significant Tax Jurisdictions Currently under Audit (Detail) (Canada [Member])
9 Months Ended
Sep. 30, 2015
Canada [Member]
 
Income Tax Examination [Line Items]
 
Significant tax jurisdictions currently under audit
2003 to 2009 
Earnings Per Share - Numbers of Shares Used in Earnings Per Share Computation (Detail)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Basic:
 
 
 
 
Weighted average common shares outstanding
41,783 
42,704 
41,992 
42,721 
Diluted:
 
 
 
 
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in a rabbi trust
301 
133 
345 
123 
Total weighted average diluted shares outstanding
42,084 
42,837 
42,337 
42,844 
Anti-dilutive shares excluded from the diluted earnings per share calculation
14 
30 
25 
Earnings Per Share - Additional Information (Detail)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
2011 Share Repurchase Program [Member]
Aug. 18, 2011
2011 Share Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
 
 
Maximum amount of shares authorized for repurchase
 
 
 
 
 
5,000,000 
Total Number of Shares Repurchased
354,000 
138,000 
854,000 
268,000 
4,900,000 
 
Earnings Per Share - Shares Repurchased (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Schedule Of Shares Repurchased [Line Items]
 
 
 
 
Total Number of Shares Repurchased
354 
138 
854 
268 
Total Cost of Shares Repurchased
$ 8,746 
$ 2,745 
$ 20,715 
$ 5,350 
Minimum [Member]
 
 
 
 
Schedule Of Shares Repurchased [Line Items]
 
 
 
 
Range of Prices Paid Per Share
$ 24.30 
$ 19.82 
$ 22.81 
$ 19.82 
Maximum [Member]
 
 
 
 
Schedule Of Shares Repurchased [Line Items]
 
 
 
 
Range of Prices Paid Per Share
$ 25.00 
$ 20.00 
$ 25.00 
$ 20.00 
Commitments and Loss Contingency - Schedule of Future Minimum Rental Payments under Operating Leases (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
 
2015 (remaining three months)
$ 1,038 
2016
11,847 
2017
11,909 
2018
11,559 
2019
11,140 
2020
10,160 
2021 and thereafter
19,270 
Total minimum payments required
$ 76,923 
Commitments and Loss Contingency - Additional Information (Detail) (USD $)
9 Months Ended
Sep. 30, 2015
Jul. 2, 2015
Dec. 31, 2014
Qelp [Member]
 
 
 
Long-term Purchase Commitment [Line Items]
 
 
 
Fair value of contingent consideration
$ 6,048,000 
$ 6,000,000 
$ 0 
Expected future value of contingent consideration
$ 9,100,000 
 
 
Contingent consideration expected payment period
3 years 
 
 
Minimum [Member]
 
 
 
Long-term Purchase Commitment [Line Items]
 
 
 
Term of agreements with third party vendors
1 year 
 
 
Maximum [Member]
 
 
 
Long-term Purchase Commitment [Line Items]
 
 
 
Term of agreements with third party vendors
5 years 
 
 
Commitments and Loss Contingency - Schedule of Future Minimum Purchases Remaining under Agreements (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
 
2015 (remaining three months)
$ 2,987 
2016
2,673 
2017
1,669 
2018
2019
2020
2021 and thereafter
Total minimum payments required
$ 7,329 
Defined Benefit Pension Plan and Postretirement Benefits - Net Periodic Benefit Cost for Pension Plans (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
 
 
 
 
Service cost
$ 101 
$ 101 
$ 329 
$ 302 
Interest cost
31 
31 
102 
92 
Recognized actuarial (gains)
(10)
(13)
(31)
(37)
Net periodic benefit cost
$ 122 
$ 119 
$ 400 
$ 357 
Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail)
9 Months Ended
Sep. 30, 2015
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 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]
 
 
 
 
401(k) plan contributions
$ 181 
$ 214 
$ 652 
$ 694 
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
Sep. 30, 2015
Dec. 31, 2014
Split-Dollar Life Insurance Arrangement [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Postretirement benefit obligation
$ 22 
$ 46 
Unrealized gains (losses) in AOCI
$ 370 
$ 342 
Stock-Based Compensation - Additional Information (Detail) (USD $)
9 Months Ended 12 Months Ended 36 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Sep. 30, 2015
2011 Equity Incentive Plan [Member]
Sep. 30, 2015
2011 Equity Incentive Plan [Member]
Stock Appreciation Rights (SARs) [Member]
Sep. 30, 2015
2011 Equity Incentive Plan [Member]
Restricted Shares and Restricted Stock Units (RSU's) [Member]
Sep. 30, 2015
2011 Equity Incentive Plan [Member]
Restricted Shares and Restricted Stock Units (RSU's) [Member]
Minimum [Member]
Sep. 30, 2015
2011 Equity Incentive Plan [Member]
Restricted Shares and Restricted Stock Units (RSU's) [Member]
Maximum [Member]
Sep. 30, 2015
Non-Employee Director Fee Plan [Member]
Common Stock Awards [Member]
May 16, 2012
Non-Employee Director Fee Plan [Member]
Common Stock Awards [Member]
May 18, 2015
Non-Employee Director Fee Plan [Member]
Common Stock Awards [Member]
Sep. 30, 2015
Deferred Compensation Plan [Member]
Common Stock Awards [Member]
Sep. 30, 2015
Deferred Compensation Plan [Member]
Common Stock Awards [Member]
Treasury Stock [Member]
Dec. 31, 2014
Deferred Compensation Plan [Member]
Common Stock Awards [Member]
Treasury Stock [Member]
Sep. 30, 2015
Deferred Compensation Plan [Member]
Common Stock Awards [Member]
President, Chief Executive Officer and Executive Vice Presidents [Member]
Maximum [Member]
Sep. 30, 2015
Deferred Compensation Plan [Member]
Common Stock Awards [Member]
Senior Vice President, Global Vice Presidents and Vice Presidents [Member]
Maximum [Member]
Sep. 30, 2015
Deferred Compensation Plan [Member]
Accrued employee compensation and benefits
Dec. 31, 2014
Deferred Compensation Plan [Member]
Accrued employee compensation and benefits
Sep. 30, 2015
2001 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized stock-based compensation costs
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares of common stock available under the 2011 plan
 
 
4,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plan expiration date
 
 
 
 
 
 
 
May 31, 2014 
 
 
 
 
 
 
 
 
 
Mar. 14, 2011 
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation vesting period
 
 
 
One-third on each of the first three anniversaries of the date of grant 
One-third on each of the first three anniversaries of the date of grant 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average period
 
 
 
1 year 4 months 24 days 
1 year 9 months 18 days 
 
 
4 months 24 days 
 
 
2 years 
 
 
 
 
 
 
 
Total unrecognized compensation cost
 
 
 
2,400,000 
16,900,000 
 
 
400,000 
 
 
100,000 
 
 
 
 
 
 
 
Range of vesting possibilities
 
 
 
 
 
0.00% 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
Value of initial granted shares of common stock to new non employee director
 
 
 
 
 
 
 
60,000 
 
 
 
 
 
 
 
 
 
 
Vesting period of initial granted shares of common stock to new non employee director
 
 
 
 
 
 
 
Twelve equal quarterly installments, one-twelfth on the date of grant and an additional one-twelfth on each successive third monthly anniversary of the date of grant 
 
 
 
 
 
 
 
 
 
 
Value of Annual Retainer to Non-Employee Director
 
 
 
 
 
 
 
 
95,000 
125,000 
 
 
 
 
 
 
 
 
Annual Retainer payable in cash to Non Employee Director
 
 
 
 
 
 
 
55,000 
50,000 
50,000 
 
 
 
 
 
 
 
 
Amended vesting period of cash Annual retainer to non-employee chairman and committee members
 
 
 
 
 
 
 
Vested in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant. 
 
 
 
 
 
 
 
 
 
 
Vesting period of annual granted shares of common stock to non-employee director
 
 
 
 
 
 
 
Vests in eight equal quarterly installments, one-eighth on the day following the annual meeting of shareholders, and an additional one-eighth on each successive third monthly anniversary of the date of grant. 
 
 
 
 
 
 
 
 
 
 
Increased stock component of annual retainer
 
 
 
 
 
 
 
25,000 
 
30,000 
 
 
 
 
 
 
 
 
Vesting period for the annual equity award
 
 
 
 
 
 
 
 
2 years 
1 year 
 
 
 
 
 
 
 
 
Amended vesting period of annual granted shares of common stock to non-employee director
 
 
 
 
 
 
 
Four equal quarterly installments, one-fourth on the date of grant and an additional one-fourth on each successive third monthly anniversary of the date of grant 
 
 
 
 
 
 
 
 
 
 
Additional annual cash award to be given to any non employee chairman of board
 
 
 
 
 
 
 
100,000 
 
 
 
 
 
 
 
 
 
 
Additional annual cash award to be given to Chairperson of the audit committee
 
 
 
 
 
 
 
20,000 
 
 
 
 
 
 
 
 
 
 
Additional annual cash award to be given to audit committee members
 
 
 
 
 
 
 
10,000 
 
 
 
 
 
 
 
 
 
 
Annual cash awards for the Chairpersons of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee
 
 
 
 
 
 
 
12,500 
 
 
 
 
 
 
 
 
 
 
Annual cash awards for the members of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee
 
 
 
 
 
 
 
7,500 
 
 
 
 
 
 
 
 
 
 
Increased additional annual cash award to Chairperson of Compensation Committee
 
 
 
 
 
 
 
15,000 
 
 
 
 
 
 
 
 
 
 
Annual Retainer payable in stock to Non Employee Director
 
 
 
 
 
 
 
100,000 
 
 
 
 
 
 
 
 
 
 
Increased cash component of annual retainer
 
 
 
 
 
 
 
5,000 
 
 
 
 
 
 
 
 
 
 
Percentage of contribution in respect of amounts deferred by certain senior management participants
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
Amounts deferred by certain senior management personnel
 
 
 
 
 
 
 
 
 
 
 
 
 
12,000 
7,500 
 
 
 
Vesting period of matching contributions and associated earnings
 
 
 
 
 
 
 
 
 
 
7 years 
 
 
 
 
 
 
 
Accrued employee compensation and benefits
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,400,000 
7,000,000 
 
Common stock match associated with the deferred compensation plan carrying value
 
 
 
 
 
 
 
 
 
 
 
$ 1,600,000 
$ 1,500,000 
 
 
 
 
 
Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value (Detail) (Stock Appreciation Rights (SARs) [Member], 2011 Equity Incentive Plan [Member])
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Stock Appreciation Rights (SARs) [Member] |
2011 Equity Incentive Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Expected volatility
34.10% 
38.90% 
Weighted-average volatility
34.10% 
38.90% 
Expected dividend rate
0.00% 
0.00% 
Expected term (in years)
5 years 
5 years 
Risk-free rate
1.60% 
1.70% 
Stock-Based Compensation - Summary of Stock Appreciation Rights Activity (Detail) (Stock Appreciation Rights (SARs) [Member], 2011 Equity Incentive Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Stock Appreciation Rights (SARs) [Member] |
2011 Equity Incentive Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Outstanding Shares, beginning balance
959 
 
Granted, Shares
217 
246 
Exercised, Shares
(604)
 
Forfeited or expired, Shares
 
Outstanding Shares, ending balance
572 
 
Vested or expected to vest, Shares
572 
 
Exercisable, Shares
148 
 
Outstanding, Weighted Average Exercise Price, beginning balance
$ 0 
 
Granted, Weighted Average Exercise Price
$ 0 
 
Exercised, Weighted Average Exercise Price
$ 0 
 
Forfeited or expired, Weighted Average Exercise Price
$ 0 
 
Outstanding, Weighted Average Exercise Price, ending balance
$ 0 
 
Vested or expected to vest, Weighted Average Exercise Price
$ 0 
 
Exercisable, Weighted Average Exercise Price
$ 0 
 
Outstanding, Weighted Average Remaining Contractual Term
7 years 10 months 24 days 
 
Vested or expected to vest, Weighted Average Remaining Contractual Term
7 years 10 months 24 days 
 
Exercisable, Weighted Average Remaining Contractual Term
5 years 2 months 12 days 
 
Outstanding, Aggregate Intrinsic Value
$ 2,473 
 
Vested or expected to vest, Aggregate Intrinsic Value
2,473 
 
Exercisable, Aggregate Intrinsic Value
$ 855 
 
Stock-Based Compensation - Weighted Average Grant Date of SARs Granted and Total Intrinsic Value of SARs Exercised (Detail) (Stock Appreciation Rights (SARs) [Member], 2011 Equity Incentive Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Stock Appreciation Rights (SARs) [Member] |
2011 Equity Incentive Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted, Shares
217 
246 
Weighted average grant-date fair value per SAR
$ 8.17 
$ 7.20 
Intrinsic value of SARs exercised
$ 4,792 
$ 333 
Fair value of vested
$ 1,302 
$ 1,553 
Stock-Based Compensation - Summary of Nonvested Stock Appreciation Rights (Detail) (Stock Appreciation Rights (SARs) [Member], 2011 Equity Incentive Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Stock Appreciation Rights (SARs) [Member] |
2011 Equity Incentive Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Nonvested Shares, beginning balance
411 
 
Granted, Shares
217 
246 
Vested, Shares
(204)
 
Forfeited, Shares
 
Nonvested Shares, ending balance
424 
 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 6.61 
 
Granted, Weighted Average Grant-Date Fair Value
$ 8.17 
$ 7.20 
Vested, Weighted Average Grant-Date Fair Value
$ 6.41 
 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 0 
 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 7.50 
 
Stock-Based Compensation - Summary of Nonvested Restricted Shares and Restricted Stock Units (Detail) (Restricted Shares and Restricted Stock Units (RSU's) [Member], 2011 Equity Incentive Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Restricted Shares and Restricted Stock Units (RSU's) [Member] |
2011 Equity Incentive Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Nonvested Shares, beginning balance
1,194 
 
Granted, Shares
441 
500 
Vested, Shares
(125)
 
Forfeited, Shares
(264)
 
Nonvested Shares, ending balance
1,246 
 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 16.80 
 
Granted, Weighted Average Grant-Date Fair Value
$ 25.06 
$ 19.77 
Vested, Weighted Average Grant-Date Fair Value
$ 16.10 
 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 15.71 
 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 20.03 
 
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value Granted and Total Fair Value of Restricted Shares and Restricted Stock Units Vested (Detail) (Restricted Shares and Restricted Stock Units (RSU's) [Member], 2011 Equity Incentive Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Restricted Shares and Restricted Stock Units (RSU's) [Member] |
2011 Equity Incentive Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted, Shares
441 
500 
Weighted average grant-date fair value
$ 25.06 
$ 19.77 
Fair value of vested
$ 2,019 
$ 895 
Stock-Based Compensation - Summary of Nonvested Common Stock Units and Share Awards (Detail) (Common Stock Awards [Member], Non-Employee Director Fee Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Common Stock Awards [Member] |
Non-Employee Director Fee Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Nonvested Shares, beginning balance
12 
 
Granted, Shares
32 
36 
Vested, Shares
(25)
 
Forfeited, Shares
 
Nonvested Shares, ending balance
19 
 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 20.24 
 
Granted, Weighted Average Grant-Date Fair Value
$ 24.70 
$ 20.15 
Vested, Weighted Average Grant-Date Fair Value
$ 23.08 
 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 0 
 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 24.06 
 
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Total Fair Value of Common Stock Units and Share Awards Vested (Detail) (Common Stock Awards [Member], Non-Employee Director Fee Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Common Stock Awards [Member] |
Non-Employee Director Fee Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted, Shares
32 
36 
Weighted average grant-date fair value
$ 24.70 
$ 20.15 
Fair value of vested
$ 580 
$ 470 
Stock-Based Compensation - Summary of Nonvested Common Stock (Detail) (Common Stock Awards [Member], Deferred Compensation Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Common Stock Awards [Member] |
Deferred Compensation Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Nonvested Shares, beginning balance
 
Granted, Shares
10 
Vested, Shares
(10)
 
Forfeited, Shares
 
Nonvested Shares, ending balance
 
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance
$ 17.88 
 
Granted, Weighted Average Grant-Date Fair Value
$ 24.83 
$ 20.34 
Vested, Weighted Average Grant-Date Fair Value
$ 22.91 
 
Forfeited or expired, Weighted Average Grant-Date Fair Value
$ 0 
 
Nonvested, Weighted Average Grant-Date Fair Value, ending balance
$ 19.36 
 
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Awarded and Cash Used to Settle Company's Obligation under Deferred Compensation (Detail) (Common Stock Awards [Member], Deferred Compensation Plan [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Common Stock Awards [Member] |
Deferred Compensation Plan [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Granted, Shares
10 
Weighted average grant-date fair value
$ 24.83 
$ 20.34 
Fair value of vested
$ 235 
$ 198 
Cash used to settle the obligation
$ 65 
$ 518 
Segments and Geographic Information - Additional Information (Detail)
9 Months Ended
Sep. 30, 2015
Segment
Region
Segment Reporting [Abstract]
 
Number of operating regions
Number of reportable segments
Segments and Geographic Information - Company's Reportable Segments (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
$ 317,924 
$ 332,671 
$ 949,062 
$ 977,598 
 
Percentage of revenues
100.00% 
100.00% 
100.00% 
100.00% 
 
Depreciation, net
10,938 
11,516 
33,004 
34,136 
 
Amortization of intangibles
3,638 
3,597 
10,504 
10,907 
 
Income (loss) from operations
24,507 
22,092 
65,265 
46,997 
 
Other (expense), net
(1,187)
(621)
(2,915)
(940)
 
Income taxes
(3,310)
(4,833)
(13,789)
(10,769)
 
Net income
20,010 
16,638 
48,561 
35,288 
 
Total assets
944,615 
938,274 
944,615 
938,274 
944,500 
Operating Segments [Member] |
Americas [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
257,421 
267,421 
771,276 
785,330 
 
Percentage of revenues
81.00% 
80.40% 
81.30% 
80.30% 
 
Depreciation, net
9,474 
10,304 
28,659 
30,552 
 
Amortization of intangibles
3,397 
3,597 
10,263 
10,907 
 
Income (loss) from operations
33,541 
28,294 
94,751 
72,076 
 
Total assets
1,062,488 
1,091,661 
1,062,488 
1,091,661 
 
Operating Segments [Member] |
EMEA [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
60,481 
65,250 
177,728 
192,268 
 
Percentage of revenues
19.00% 
19.60% 
18.70% 
19.70% 
 
Depreciation, net
1,161 
1,212 
3,388 
3,584 
 
Amortization of intangibles
241 
 
241 
 
 
Income (loss) from operations
4,629 
6,964 
11,386 
11,409 
 
Total assets
1,420,022 
1,365,437 
1,420,022 
1,365,437 
 
Other Items [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenues
22 
 
58 
 
 
Percentage of revenues
0.00% 
0.00% 
0.00% 
0.00% 
 
Depreciation, net
303 
 
957 
 
 
Income (loss) from operations
(13,663)
(13,166)
(40,872)
(36,488)
 
Other (expense), net
(1,187)
(621)
(2,915)
(940)
 
Income taxes
(3,310)
(4,833)
(13,789)
(10,769)
 
Total assets
$ (1,537,895)
$ (1,518,824)
$ (1,537,895)
$ (1,518,824)
 
Other Income (Expense) - Schedule of Other Income (Expense) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Other Income (Expense) [Abstract]
 
 
 
 
Foreign currency transaction gains (losses)
$ (1,926)
$ 13 
$ (2,951)
$ 644 
Gains (losses) on foreign currency derivative instruments not designated as hedges
1,727 
(386)
1,630 
(994)
Other miscellaneous income (expense)
(672)
(33)
(546)
208 
Other income (expense)
$ (871)
$ (406)
$ (1,867)
$ (142)
Related Party Transactions - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 9 Months Ended
Jan. 31, 2008
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Related Party Transactions [Abstract]
 
 
 
 
 
Duration of lease
20 years 
 
 
 
 
Payment to landlord under the lease terms
 
$ 0.1 
$ 0.1 
$ 0.3 
$ 0.3