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)

Debt - The Company’s debt consists primarily of the Company’s Credit Agreement, which permits floating-rate borrowings based upon the current Prime Rate or LIBOR plus a credit spread as determined by the Company’s leverage ratio calculation (as defined in the Credit Agreement). As of September 30, 2018 and December 31, 2017,  the Company had $272.5 million and $344.0 million, respectively, of borrowings outstanding under the Credit Agreement. During the third quarter of 2018 outstanding borrowings accrued interest at an average rate of 3.3% per annum, excluding unused commitment fees. The amounts recorded in the accompanying Balance Sheets approximate fair value due to the variable nature of the debt based on Level 2 inputs.

Derivatives - Net derivative assets (liabilities) are measured at fair value on a recurring basis. The portfolio is valued using models based on market observable inputs, including both forward and spot foreign exchange rates, interest rates, implied volatility, and counterparty credit risk, including the ability of each party to execute its obligations under the contract. As of September 30, 2018, credit risk did not materially change the fair value of the Company’s derivative contracts.

The following is a summary of the Company’s fair value measurements for its net derivative assets (liabilities) as of September 30, 2018 and December 31, 2017 (in thousands):

As of September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

 

 

 

    

Quoted Prices in

    

Significant

    

 

 

    

    

 

 

 

 

Active Markets

 

Other

 

Significant

 

 

 

 

 

 

for Identical

 

Observable

 

Unobservable

 

 

 

 

 

 

Assets

 

Inputs

 

Inputs

 

 

 

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

At Fair Value

 

Cash flow hedges

 

$

 

$

(16,163)

 

$

 

$

(16,163)

 

Fair value hedges

 

 

 

 

820

 

 

 

 

820

 

Total net derivative asset (liability)

 

$

 

$

(15,343)

 

$

 

$

(15,343)

 

 

As of December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

 

 

 

    

Quoted Prices in

    

Significant

    

 

 

    

    

 

 

 

 

Active Markets

 

Other

 

Significant

 

 

 

 

 

 

for Identical

 

Observable

 

Unobservable

 

 

 

 

 

 

Assets

 

Inputs

 

Inputs

 

 

 

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

At Fair Value

 

Cash flow hedges

 

$

 

$

(26,256)

 

$

 

$

(26,256)

 

Fair value hedges

 

 

 

 

1,470

 

 

 

 

1,470

 

Total net derivative asset (liability)

 

$

 —

 

$

(24,786)

 

$

 —

 

$

(24,786)

 

 

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