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)

A summary of the expenses recorded in Restructuring and integration charges, net in the accompanying Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2018 and 2017, respectively, is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Nine Months Ended 

 

 

 

September 30,

 

September 30,

 

 

 

2018

    

2017

    

2018

    

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Reduction in force

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Management Services

 

$

97

 

$

(213)

 

$

437

 

$

1,548

 

Customer Growth Services

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

Customer Technology Services

 

 

 —

 

 

 —

 

 

 —

 

 

93

 

Customer Strategy Services

 

 

82

 

 

13

 

 

133

 

 

13

 

Total

 

$

179

 

$

(200)

 

$

570

 

$

1,654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Nine Months Ended 

 

 

 

September 30,

 

September 30,

 

 

 

2018

    

2017

    

2018

    

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Facility exit and other charges

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Management Services

 

$

2,462

 

$

600

 

$

3,313

 

$

642

 

Customer Growth Services

 

 

75

 

 

 —

 

 

716

 

 

 —

 

Customer Technology Services

 

 

 —

 

 

 —

 

 

 —

 

 

84

 

Customer Strategy Services

 

 

 —

 

 

21

 

 

 —

 

 

21

 

Total

 

$

2,537

 

$

621

 

$

4,029

 

$

747

 

 

A rollforward of the activity in the Company’s restructuring accrual is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Reduction

    

Facility Exit and

    

 

 

 

    

in Force

    

Other Charges

    

           Total           

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2017

 

$

694

 

$

1,409

 

$

2,103

 

Expense

 

 

754

 

 

4,029

 

 

4,783

 

Payments

 

 

(919)

 

 

(2,164)

 

 

(3,083)

 

Change due to foreign currency

 

 

(181)

 

 

 —

 

 

(181)

 

Change in estimates

 

 

(184)

 

 

 —

 

 

(184)

 

Balance as of September 30, 2018

 

$

164

 

$

3,274

 

$

3,438

 

 

The remaining restructuring and other accruals are expected to be paid or extinguished during the next twelve months and are all classified as current liabilities within Other accrued expenses in the Consolidated Balance Sheets.

Integration Charges

During the third and fourth quarters of 2017, as a result of the Connextions acquisition, certain integration activities were completed and $5.6 million and $3.9 million of additional expenses were incurred and paid, respectively. These integration activities included the hiring, training and licensing of a group of employees at new delivery centers as one of the acquired centers was closed during the third quarter of 2017 and one of the acquired centers was closed during the fourth quarter of 2017. In connection with these center closures, leasehold improvements of $3.5 million were written off as a related integration expense. The Company has also incurred significant expenses related to the integration of the IT systems and has paid duplicative software costs and facilities expenses for several areas during the transition period.

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