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

Obligations and Future Capital Requirements

 

Future maturities of our outstanding debt and contractual obligations as of September 30, 2018 are summarized as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Less than

    

1 to 3

    

3 to 5

    

Over 5

    

 

 

 

 

 

1 Year

 

Years

 

Years

 

Years

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Facility(1)

 

$

10,658

 

 

287,599

 

 

 —

 

 

 —

 

$

298,257

 

Equipment financing arrangements

 

 

7,092

 

 

9,280

 

 

2,143

 

 

 —

 

 

18,515

 

Contingent consideration

 

 

724

 

 

2,179

 

 

 —

 

 

 —

 

 

2,903

 

Purchase obligations

 

 

11,030

 

 

8,053

 

 

1,056

 

 

 —

 

 

20,139

 

Operating lease commitments

 

 

42,032

 

 

63,481

 

 

42,779

 

 

25,758

 

 

174,050

 

Transition tax related to US 2017 Tax Act

 

 

3,800

 

 

7,600

 

 

7,600

 

 

21,738

 

 

40,738

 

Other debt

 

 

2,741

 

 

38,167

 

 

80

 

 

 —

 

 

40,988

 

Total

 

$

78,077

 

$

416,359

 

$

53,658

 

$

47,496

 

$

595,590

 

 


(1)

Includes estimated interest payments based on the weighted-average interest rate, unused commitment fees, current interest rate swap arrangements, and outstanding debt as of September 30, 2018.

 

·

Contractual obligations to be paid in a foreign currency are translated at the period end exchange rate.

·

Purchase obligations primarily consist of outstanding purchase orders for goods or services not yet received, which are not recognized as liabilities in our Consolidated Balance Sheets until such goods and/or services are received.

·

The contractual obligation table excludes our liabilities of $2.4  million related to uncertain tax positions because we cannot reliably estimate the timing of cash payments.

Our outstanding debt is primarily associated with the use of funds under our Credit Agreement to fund working capital, repurchase our common stock, pay dividends, and for other cash flow needs across our global operations.

Future Capital Requirements

We currently expect total capital expenditures in 2018 to be approximately 3.2% of revenue. Approximately 70% of these expected capital expenditures are to support growth in our business and 30% relate to the maintenance for existing assets. The anticipated level of 2018 capital expenditures is primarily driven by new client contracts and the corresponding requirements for additional delivery center capacity as well as enhancements to our technological infrastructure.

The amount of capital required over the next 12 months will depend on our levels of investment in infrastructure necessary to maintain, upgrade or replace existing assets. Our working capital and capital expenditure requirements could also increase materially in the event of acquisitions or joint ventures, among other factors. These factors could require that we raise additional capital through future debt or equity financing. We can provide no assurance that we will be able to raise additional capital upon commercially reasonable terms acceptable to us.

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