10-Q
TTEC HOLDINGS, INC. filed this Form 10-Q on 11/07/2018
Entire Document
 

Table of Contents

TTEC HOLDINGS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table presents revenue based upon the geographic location where the services are provided (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

    

2018

    

2017

    

2018

    

2017

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

206,433

 

$

197,664

 

$

605,024

 

$

570,305

 

Philippines

 

 

85,272

 

 

86,938

 

 

259,919

 

 

258,360

 

Latin America

 

 

26,351

 

 

31,361

 

 

84,073

 

 

96,301

 

Europe / Middle East / Africa

 

 

16,112

 

 

14,892

 

 

50,552

 

 

45,555

 

Canada

 

 

15,400

 

 

18,937

 

 

47,525

 

 

56,035

 

Asia Pacific / India

 

 

15,368

 

 

9,244

 

 

42,945

 

 

24,186

 

Total

 

$

364,936

 

$

359,036

 

$

1,090,038

 

$

1,050,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4)SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS

The Company had no clients that contributed in excess of 10% of total revenue for the nine months ended September 30, 2018.  The Company does have clients with revenue exceeding $100 million annually and the loss of one or more of these clients could have a material adverse effect on the Company’s business, operating results, or financial condition.

To limit the Company’s credit risk with its clients, management performs periodic credit evaluations, maintains allowances for uncollectible accounts and may require pre-payment for services from certain clients. Based on currently available information, management does not believe significant credit risk existed as of September 30, 2018.

On October 15, 2018, Sears Holding Corporation (“Sears”) announced that it has filed a petition for bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York. As of the date of filing, TTEC had approximately $3 million in pre-petition accounts receivables exposure related to Sears. TTEC continues to provide services to Sears and has received assurances that the cost of its services will be covered by funds that Sears has available to satisfy its obligations to its current service providers through debtor in possession financing.

 

(5)GOODWILL AND OTHER INTANGIBLE ASSETS

 

Goodwill consisted of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

Effect of

    

 

 

 

 

 

December 31,

 

Acquisitions /

 

 

 

 

Foreign

 

September 30,

 

 

 

2017

 

Adjustments

 

Impairments

 

Currency

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Management Services

 

$

119,497

 

$

(125)

 

$

 —

 

$

(5,586)

 

$

113,786

 

Customer Growth Services

 

 

24,439

 

 

 —

 

 

 —

 

 

 —

 

 

24,439

 

Customer Technology Services

 

 

40,839

 

 

1,462

 

 

 —

 

 

(78)

 

 

42,223

 

Customer Strategy Services

 

 

21,919

 

 

 —

 

 

 —

 

 

(541)

 

 

21,378

 

Total

 

$

206,694

 

$

1,337

 

$

 —

 

$

(6,205)

 

$

201,826

 

 

The Company performs a goodwill impairment assessment on at least an annual basis. The Company conducts its annual goodwill impairment assessment during the fourth quarter, or more frequently, if indicators of impairment exist. During the quarter ended September 30, 2018, the Company assessed whether any such indicators of impairment existed and concluded there were none.

 

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