Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-11919 | ||
Entity Registrant Name | TTEC Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 84-1291044 | ||
Entity Address, Address Line One | 6312 South Fiddler’s Green Circle, Suite 100N, | ||
Entity Address, City or Town | Greenwood Village | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80111 | ||
City Area Code | 303 | ||
Local Phone Number | 397-8100 | ||
Title of 12(b) Security | Common stock of TTEC Holdings, Inc., $0.01 par value per share | ||
Trading Symbol | TTEC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 650,588,890 | ||
Entity Common Stock, Shares Outstanding | 47,428,113 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 238 | ||
Auditor Location | Denver, Colorado | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001013880 | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 172,747 | $ 153,435 |
Accounts receivable, net | 394,868 | 417,637 |
Prepaids and other current assets | 95,064 | 133,365 |
Income and other tax receivables | 18,524 | 45,533 |
Total current assets | 681,203 | 749,970 |
Long-term assets | ||
Property, plant and equipment, net | 191,003 | 183,360 |
Operating lease assets | 121,574 | 92,431 |
Goodwill | 808,988 | 807,845 |
Deferred tax assets, net | 38,151 | 18,713 |
Other intangible assets, net | 198,433 | 233,909 |
Other long-term assets | 101,573 | 67,734 |
Income Taxes Receivable, Noncurrent | 44,673 | |
Total long-term assets | 1,504,395 | 1,403,992 |
Total assets | 2,185,598 | 2,153,962 |
Current liabilities | ||
Accounts payable | 96,577 | 93,937 |
Accrued employee compensation and benefits | 146,184 | 145,096 |
Other accrued expenses | 32,217 | 34,451 |
Income taxes payable | 4,909 | 7,166 |
Deferred revenue | 81,171 | 87,846 |
Current operating lease liabilities | 38,271 | 35,271 |
Other current liabilities | 3,698 | 7,597 |
Total current liabilities | 403,027 | 411,364 |
Long-term liabilities | ||
Line of credit | 995,000 | 960,000 |
Deferred tax liabilities, net | 3,137 | 3,829 |
Non-current Income Taxes Payable | 0 | 9,140 |
Non-current operating lease liabilities | 96,809 | 69,575 |
Other long-term liabilities | 72,083 | 66,304 |
Total long-term liabilities | 1,167,029 | 1,108,848 |
Total liabilities | 1,570,056 | 1,520,212 |
Redeemable noncontrolling interest | 0 | 55,645 |
Stockholders' equity | ||
Preferred stock - $0.01 par value: 10,000,000 shares authorized; zero shares outstanding as of December 31, 2023 and December 31, 2022 | 0 | 0 |
Common stock - $0.01 par value; 150,000,000 shares authorized; 47,427,200 and 47,224,074 shares outstanding as of December 31, 2023 and December 31, 2022, respectively | 474 | 472 |
Additional paid-in capital | 407,415 | 367,673 |
Treasury stock at cost: 34,625,053 and 34,828,179 shares as of December 31, 2023 and December 31, 2022, respectively | (589,807) | (593,164) |
Accumulated other comprehensive income (loss) | (89,876) | (126,301) |
Retained earnings | 870,429 | 911,233 |
Noncontrolling interest | 16,907 | 18,192 |
Total stockholders' equity | 615,542 | 578,105 |
Total liabilities and stockholders' equity and mezzanine equity | $ 2,185,598 | $ 2,153,962 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Stockholders' equity | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 2,248 | $ 3,524 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares outstanding | 47,427,200 | 47,224,074 |
Treasury stock, shares | 34,625,053 | 34,828,179 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income | |||
Revenue. | $ 2,462,817 | $ 2,443,707 | $ 2,273,062 |
Type of Revenue | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Operating expenses | |||
Cost of services (exclusive of depreciation and amortization presented separately below) | $ 1,932,877 | $ 1,856,518 | $ 1,704,109 |
Selling, general and administrative | 290,873 | 287,433 | 239,994 |
Depreciation and amortization | 101,272 | 111,791 | 96,706 |
Restructuring charges, net | 8,041 | 5,673 | 3,807 |
Impairment losses | 11,733 | 13,749 | 11,254 |
Total operating expenses | 2,344,796 | 2,275,164 | 2,055,870 |
Income from operations | 118,021 | 168,543 | 217,192 |
Other income (expense) | |||
Interest income | 5,150 | 1,811 | 761 |
Interest expense | (78,321) | (36,067) | (12,384) |
Other income (expense), net | (4,126) | 10,161 | 2,315 |
Total other income (expense) | (77,297) | (24,095) | (9,308) |
Income before income taxes | 40,724 | 144,448 | 207,884 |
Benefit from (provision for) income taxes | (22,460) | (27,115) | (49,695) |
Net income | 18,264 | 117,333 | 158,189 |
Net income attributable to noncontrolling interest | (9,836) | (14,093) | (17,219) |
Net income (loss) attributable to TTEC stockholders | 8,428 | 103,240 | 140,970 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | 30,783 | (28,688) | (17,551) |
Derivative valuation, gross | 8,416 | 178 | (11,452) |
Derivative valuation, tax effect | (2,190) | (49) | 2,981 |
Other, net of tax | (391) | 183 | (391) |
Total other comprehensive income (loss) | 36,618 | (28,376) | (26,413) |
Total comprehensive income (loss) | 54,882 | 88,957 | 131,776 |
Less: Comprehensive income attributable to noncontrolling interest | (9,501) | (12,679) | (12,067) |
Comprehensive income (loss) attributable to TTEC stockholders | $ 45,381 | $ 76,278 | $ 119,709 |
Weighted average shares outstanding | |||
Basic | 47,335 | 47,121 | 46,890 |
Diluted | 47,419 | 47,335 | 47,386 |
Net income (loss) per share attributable to TTEC stockholders | |||
Basic | $ 0.18 | $ 2.19 | $ 3.01 |
Diluted | $ 0.18 | $ 2.18 | $ 2.97 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity and Mezzanine Equity - USD ($) $ in Thousands | Stockholders' Equity of the Company Common Stock [Member] | Stockholders' Equity of the Company Treasury Stock [Member] | Stockholders' Equity of the Company Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) | Stockholders' Equity of the Company Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Common stock beginning balance, share at Dec. 31, 2020 | 46,737,000 | ||||||
Beginning balance, value at Dec. 31, 2020 | $ 467 | $ 360,293 | $ (72,156) | $ 757,312 | $ 13,060 | $ 457,762 | |
Beginning balance at Dec. 31, 2020 | $ (601,214) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 140,970 | 12,210 | 153,180 | ||||
Dividends to shareholders | (42,217) | (42,217) | |||||
Dividends distributed to noncontrolling interest | (9,315) | (9,315) | |||||
Foreign currency translation adjustments | (17,408) | (143) | (17,551) | ||||
Derivatives valuation, net of tax | (8,471) | (8,471) | |||||
Vesting of restricted stock units, share | 253,000 | ||||||
Vesting of restricted stock units, value | $ 3 | 4,183 | (15,583) | (11,397) | |||
Equity-based compensation expense | 16,425 | 16,425 | |||||
Other, net of tax. | (391) | (391) | |||||
Ending balance at Dec. 31, 2021 | (597,031) | ||||||
Common stock ending balance, share at Dec. 31, 2021 | 46,990,000 | ||||||
Ending balance, value at Dec. 31, 2021 | $ 470 | 361,135 | (98,426) | 856,065 | 15,812 | 538,025 | |
Temporary Equity, Beginning Balance at Dec. 31, 2020 | 52,976 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Temporary Equity, Net Income | 5,009 | ||||||
Temporary equity distributions. | (1,669) | ||||||
Temporary Equity, Ending Balance at Dec. 31, 2021 | 56,316 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 103,240 | 13,180 | 116,420 | ||||
Dividends to shareholders | (48,072) | (48,072) | |||||
Dividends distributed to noncontrolling interest | (10,299) | (10,299) | |||||
Foreign currency translation adjustments | (28,187) | (501) | (28,688) | ||||
Derivatives valuation, net of tax | 129 | 129 | |||||
Vesting of restricted stock units, share | 234,000 | ||||||
Vesting of restricted stock units, value | $ 2 | 3,867 | (11,033) | (7,164) | |||
Equity-based compensation expense | 17,571 | 17,571 | |||||
Other, net of tax. | 183 | $ 183 | |||||
Preferred stock ending balance, share at Dec. 31, 2022 | 0 | ||||||
Ending balance at Dec. 31, 2022 | (593,164) | $ (593,164) | |||||
Common stock ending balance, share at Dec. 31, 2022 | 47,224,000 | 47,224,074 | |||||
Ending balance, value at Dec. 31, 2022 | $ 472 | 367,673 | (126,301) | 911,233 | 18,192 | $ 578,105 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Temporary Equity, Net Income | 913 | ||||||
Temporary equity distributions. | (1,584) | ||||||
Temporary Equity, Ending Balance at Dec. 31, 2022 | 55,645 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Noncontrolling interest adjustment due to buyout | 24,067 | 24,067 | |||||
Net income (loss) | 8,428 | 9,308 | 17,736 | ||||
Dividends to shareholders | (49,232) | (49,232) | |||||
Dividends distributed to noncontrolling interest | (10,786) | (10,786) | |||||
Foreign currency translation adjustments | 30,590 | 193 | 30,783 | ||||
Derivatives valuation, net of tax | 6,226 | 6,226 | |||||
Vesting of restricted stock units, share | 203,000 | ||||||
Vesting of restricted stock units, value | $ 2 | 3,357 | (6,396) | (3,037) | |||
Equity-based compensation expense | 22,071 | 22,071 | |||||
Other, net of tax. | (391) | $ (391) | |||||
Preferred stock ending balance, share at Dec. 31, 2023 | 0 | ||||||
Ending balance at Dec. 31, 2023 | $ (589,807) | $ (589,807) | |||||
Common stock ending balance, share at Dec. 31, 2023 | 47,427,000 | 47,427,200 | |||||
Ending balance, value at Dec. 31, 2023 | $ 474 | $ 407,415 | $ (89,876) | $ 870,429 | $ 16,907 | $ 615,542 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Temporary noncontrolling interest adjustment due to buyout | (24,067) | ||||||
Temporary Equity, Net Income | 528 | ||||||
Temporary equity buyout of noncontrolling interest | (31,920) | ||||||
Temporary equity distributions. | (186) | ||||||
Temporary Equity, Ending Balance at Dec. 31, 2023 | $ 0 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated statement of stockholders' equity and mezzanine equity [Abstract] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.04 | $ 1.02 | $ 0.90 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 18,264 | $ 117,333 | $ 158,189 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 101,272 | 111,791 | 96,706 |
Amortization of contract acquisition costs | 2,288 | 2,065 | 983 |
Amortization of debt issuance costs | 1,067 | 1,018 | 1,016 |
Imputed interest expense and fair value adjustments to contingent consideration | 7,579 | 1,746 | 1,168 |
Provision for credit losses | 2,009 | 9,391 | (350) |
(Gain) loss on disposal of assets | 2,219 | 1,916 | 1,127 |
Loss on dissolution of subsidiary | 301 | 0 | 0 |
Impairment losses | 11,733 | 13,749 | 11,254 |
Deferred income taxes | (7,528) | (11,001) | 831 |
Excess tax benefit from equity-based awards | 1,705 | (1,122) | (5,301) |
Equity-based compensation expense | 22,071 | 17,571 | 16,425 |
(Gain) loss on foreign currency derivatives | (3) | (7) | (213) |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | 22,359 | (74,564) | 40,156 |
Prepaids and other assets | 8,570 | 43,699 | 18,407 |
Accounts payable and accrued expenses | 9,518 | (12,695) | (17,209) |
Deferred revenue and other liabilities | (58,659) | (83,842) | (71,893) |
Net cash provided by operating activities | 144,765 | 137,048 | 251,296 |
Cash flows from investing activities | |||
Proceeds from sale of long-live assets | 261 | 229 | 93 |
Purchases of property, plant and equipment | (67,839) | (84,012) | (60,358) |
Acquisitions, net of cash acquired for current period and prior period, respectively | 0 | (142,420) | (481,718) |
Net cash used in investing activities | (67,578) | (226,203) | (541,983) |
Cash flows from financing activities | |||
Net proceeds (borrowings) from line of credit | 35,000 | 169,000 | 406,000 |
Payments on other debt | (2,317) | (3,245) | (6,626) |
Payments of contingent consideration and hold back payments to acquisitions | (37,676) | (9,600) | (11,517) |
Dividends paid to shareholders | (49,232) | (48,072) | (42,217) |
Payments to noncontrolling interest | (10,972) | (11,883) | (10,984) |
Tax payments related to issuance of restricted stock units | (3,037) | (7,164) | (11,397) |
Payments of debt issuance costs | 0 | 0 | (3,614) |
Net cash (used in) provided by financing activities | (68,234) | 89,036 | 319,645 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,112) | (13,499) | (7,291) |
Increase (decrease) in cash, cash equivalents and restricted cash | 6,841 | (13,618) | 21,667 |
Cash, cash equivalents and restricted cash, beginning of period | 167,064 | 180,682 | 159,015 |
Cash, cash equivalents and restricted cash, end of period | 173,905 | 167,064 | 180,682 |
Supplemental disclosures | |||
Cash paid for interest | 77,199 | 34,984 | 11,188 |
Cash paid for income taxes | 46,129 | 42,563 | 71,392 |
Non-cash investing and financing activities | |||
Acquisition of long lived assets through finance leases | 3,126 | 461 | 912 |
Acquisition of equipment through increase in accounts payable, net | $ 2,626 | $ 3,346 | $ (2,243) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from investing activities | |||
Cash acquired from acquisition | $ 0 | $ 0 | $ 18,638 |
OVERVIEW AND BASIS OF PRESENTAT
OVERVIEW AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2023 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
OVERVIEW AND BASIS OF PRESENTATION | (1) OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview Founded in 1983 The Company operates and reports its financial results of operation through two business segments: • TTEC Digital is one of the largest CX technology providers and is focused exclusively on the intersection of Contact Center as a Service (CCaaS), Customer Relationship Management (CRM), and Artificial Intelligence (AI) and Analytics. A professional services organization comprised of software engineers, systems architects, data scientists and CX strategists, this segment creates and implements strategic CX transformation roadmaps; sells, operates, and provides managed services for cloud platforms and premise based CX technologies including Amazon Web Services, Cisco, Genesys, Google, and Microsoft; and creates proprietary IP to support industry specific and custom client needs. TTEC Digital serves clients across Enterprise and Small & Medium Sized business segments and has a dedicated unit with government technology certifications serving the public sector. • TTEC Engage provides the digitally enabled CX operational and managed services to support large, complex enterprise clients’ end-to-end customer interactions at scale. Tailored to meet industry specific and business needs, this segment delivers data-driven omnichannel customer care, customer acquisition, growth, and retention services, tech support, trust and safety and back-office solutions. The segment’s technology-enabled delivery model covers the entire associate lifecycle including recruitment, onboarding, training, delivery, workforce management and quality assurance. TTEC demonstrates its market leadership through strategic collaboration across TTEC Digital and TTEC Engage when there is client demand and fit for the Company’s integrated solutions. This partnership is central to the Company’s ability to deliver comprehensive and transformational customer experience solutions to its clients, including integrated delivery, go-to-market and innovation for truly differentiated, market leading CX solutions. During 2023, the combined TTEC Digital and TTEC Engage global operating platform delivered onshore, nearshore and offshore services in 22 countries on six continents – the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Egypt, Germany, Greece, Honduras, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Thailand, and the United Kingdom – with the help of over 60,000 customer care associates, consultants, technologists, and CX professionals. Basis of Presentation The Consolidated Financial Statements are comprised of the accounts of TTEC, its wholly owned subsidiaries, its 55% equity owned subsidiary Percepta, LLC, its 70% equity owned subsidiary First Call Resolution, LLC through March 31, 2023 and then 100% owned subsequently, and its 70% equity owned subsidiary Serendebyte, Inc. (see Note 2). All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, litigation reserves, restructuring reserves, allowance for credit losses, contingent consideration, redeemable noncontrolling interest, and valuation of goodwill, long-lived and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. Out-of-period Adjustment The Consolidated Financial Statements for the year ended December 31, 2023 included an adjustment of $14.2 million to other comprehensive income and deferred tax assets, to correct for an error identified by management during the preparation of the financial statements. This adjustment was to reflect the deferred tax impact of currency translation adjustments, of which $14.2 million related to prior annual fiscal periods. Management has determined that this error was not material to the historical financial statements in any individual period or in the aggregate and did not result in the previously issued financial statements being materially misstated. As such, management recorded the correction as an out-of-period adjustment in the year ended December 31, 2023. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash, primarily held in interest-bearing investments, and liquid short-term investments, which have original maturities of less than 90 days. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations. The Company manages a centralized global treasury function in the United States with a focus on safeguarding and optimizing the use of its global cash and cash equivalents. The Company’s cash is held in the U.S. in U.S. dollars and outside of the U.S. in U.S. dollars and foreign currencies. The Company believes that it has effectively mitigated and managed its risk relating to its global cash through its cash management practices, banking partners, and utilization of diversified bank deposit accounts and high quality investments. However, the Company can provide no assurances that it will not sustain losses. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statement of Cash Flows (in thousands): December 31, 2023 December 31, 2022 December 31, 2021 Cash and cash equivalents $ 172,747 $ 153,435 $ 158,205 Restricted cash included in "Prepaid and other current assets" 1,158 13,629 22,477 Total $ 173,905 $ 167,064 $ 180,682 Concentration of Credit Risk The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate the possibility of current and future exposures resulting in a loss. The Company evaluates the creditworthiness of its clients prior to entering into an agreement to provide services and as necessary through the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative hedging activities, as the Company diversifies its activities across eight investment-grade financial institutions. Fair Value of Financial Instruments Fair values of cash equivalents, accounts receivable, accounts payable and debt approximate the carrying amounts because of their short-term nature. Accounts Receivable At the end of each quarter an allowance for credit losses will be calculated based on the current quarterly revenue multiplied by the historical loss percentage of the prior three-year period and recorded in the income statement. In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against this allowance when the Company determines a balance is uncollectible. Derivatives The Company enters into foreign exchange forward and option contracts to reduce its exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. Upon proper qualification, these contracts are designated as cash flow hedges. The Company formally documents at the inception of the hedge all relationships between hedging instruments and hedged items as well as its risk management objective and strategy for undertaking various hedging activities. All derivative financial instruments are reported at fair value and recorded in Prepaids and other current assets, Other long-term assets, Other current liabilities, and Other long-term liabilities in the accompanying Consolidated Balance Sheets as applicable for each period end. Changes in fair value of derivative instruments designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss), a component of Stockholders’ Equity, to the extent they are deemed effective. Ineffectiveness is measured based on the change in fair value of the forward contracts and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. Based on the criteria established by current accounting standards, the Company’s cash flow hedge contracts are deemed to be highly effective. Any realized gains or losses resulting from the foreign currency cash flow hedges are recognized together with the hedged transaction within Revenue. Gains and losses from the settlements of the Company’s net investment hedges remain in Accumulated other comprehensive income (loss) until partial or complete liquidation of the applicable net investment. The Company also enters into fair value derivative contracts that hedge against foreign currency exchange gains and losses primarily associated with short-term payables and receivables. Changes in the fair value of derivative instruments designated as fair value hedges affect the carrying value of the asset or liability hedged, with changes in both the derivative instrument and the hedged asset or liability being recognized in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). Property, Plant and Equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and amortization. Maintenance, repairs and minor renewals are expensed as incurred. Depreciation and amortization are computed on the straight-line method based on the following estimated useful lives: Building 30 years Computer equipment and software 3 to 7 years Telephone equipment 4 to 7 years Furniture and fixtures 5 years Leasehold improvements Lesser of economic useful life (typically 10 years) or original lease term Other 3 to 7 years The Company evaluates the carrying value of property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An asset is considered to be impaired when the forecasted undiscounted cash flows of an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of forecasted future cash flows. Software Development Costs The Company capitalizes costs incurred to acquire or develop software for internal use. Capitalized software development costs are amortized using the straight-line method over the estimated useful life equal to the lesser of the license term or 4 or 7 years depending on the software type. The expense related to these assets has been classified as amortization expense within the income statement except for assets that are classified as cloud computing arrangements which will be expensed as operating expenses within the income statement. Goodwill The Company evaluates goodwill for possible impairment at least annually on December 1, and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses a two-step process to assess the realizability of goodwill. The first step, Step 0, is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. For example, the Company analyzes changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a particular reporting unit. A qualitative assessment also includes analyzing the excess fair value of a reporting unit over its carrying value from impairment assessments performed in previous years. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. If a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not, or if a reporting unit’s fair value has historically been closer to its carrying value, the Company will proceed to Step 1 testing where the Company calculates the fair value of a reporting unit. If Step 1 indicates that the carrying value of a reporting unit is in excess of its fair value, the Company will record an impairment equal to the amount by which a reporting unit’s carrying value exceeds its fair value. Other Intangible Assets The Company has other intangible assets that include customer relationships (definite-lived), trade names (definite-lived) and non-compete agreements (definite-lived). Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from 1 to 12 years. The Company evaluates the carrying value of its definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. A definite-lived intangible asset is considered to be impaired when the forecasted undiscounted cash flows of its asset group are estimated to be less than its carrying value. The Company evaluates indefinite-lived intangible assets for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Similar to goodwill, the Company may first use a qualitative analysis to assess the realizability of its indefinite-lived intangible assets. The qualitative analysis will include a review of changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of an indefinite-lived intangible asset. If a quantitative analysis is completed, an indefinite-lived intangible asset (i.e. trade name) is evaluated for possible impairment by comparing the fair value of the asset with its carrying value. Fair value is estimated as the discounted value of future revenues arising from a trade name using a royalty rate that a market participant would pay for use of that trade name. An impairment charge is recorded if the intangible asset’s carrying value exceeds its estimated fair value. Restructuring Liabilities The Company routinely assesses the profitability and utilization of its customer engagement centers and existing markets. In some cases, the Company has chosen to close under-performing customer engagement centers and complete reductions in workforce to enhance future profitability. Severance payments that occur from reductions in workforce are in accordance with the Company’s postemployment plans and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and reasonably estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, rather than upon commitment to a plan. Income Taxes Accounting for income taxes requires recognition of deferred tax assets and liabilities for the expected future income tax consequences of transactions that have been included in the Consolidated Financial Statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Gross deferred tax assets may then be reduced by a valuation allowance for amounts that do not satisfy the realization criteria established by current accounting standards. The Company accounts for uncertain tax positions using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit. The second step is to estimate and measure the tax benefit as the amount that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. The Company evaluates these uncertain tax positions on a quarterly basis. This evaluation is based on the consideration of several factors including changes in facts or circumstances, changes in applicable tax law, and settlement of issues under audit. The Company recognizes interest and penalties related to uncertain tax positions as a part of the Provision for income taxes in the accompanying Consolidated Statements of Comprehensive Income (Loss). During the fourth quarter of 2023, the Company released its indefinite reinvestment assertion. The Company has completed its analysis in regard to the full tax impact of these changes in its indefinite reinvestment reassertion and any related taxes have been recorded. The Company generally intends to limit distributions from non-U.S. subsidiaries to cash balances available in foreign jurisdictions. No additional income taxes have been provided for any remaining outside basis difference inherent in our foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. Determination of any unrecognized deferred tax liability related to the outside basis difference in investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which we operate. The Organization for Economic Co-operation and Development (OECD), supported by 140 of their member countries, have agreed to implement a minimum 15% tax rate on certain multinational enterprises and have released model guidance. This global minimum tax, known as the Pillar Two framework, will become effective across various countries starting in 2024, as each country works to enact legislation influenced by the OECD Pillar 2 rules. While the Company does not expect the adoption of the Pillar Two framework to have a material impact on its effective tax rate, the Company continues to evaluate additional guidance released by the OECD, along with the pending and adopted legislation in each of the countries in which we operate. Revenue Recognition The Company recognizes revenue from contracts and programs when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Performance obligation is the unit of accounting for revenue recognition under the provisions of ASC Topic 606, “Revenue from Contracts with Customers” and all related amendments (“ASC 606”). A contract’s transaction price is allocated to each distinct performance obligation in recognizing revenue. The Business Process Outsourcing (“BPO”) inbound and outbound service fees are based on either a per minute, per hour, per FTE, per transaction or per call basis, which represents the majority of our contracts. These contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For example, services for the training of the Company’s agents (which are separately billable to the customer) are a separate promise in the BPO contracts, but they are not distinct from the primary service obligations to transfer services to the customers. The performance of the customer service by the agents is highly dependent on the initial, growth, and seasonal training services provided to the agents during the life of a program. The training itself is not considered to have value to the customer on a standalone basis, and therefore, training on a standalone basis cannot be considered a separate unit of accounting. The Company therefore defers revenue from certain training services that are rendered mainly upon commencement of a new client contract or program, including seasonal programs. Revenue is also deferred when there is significant growth training in an existing program. Accordingly, recognition of initial, growth, and seasonal training revenues and associated costs (consisting primarily of labor and related expenses) are deferred and amortized over the period of economic benefit. With the exception of training which is typically billed upfront and deferred, the remainder of revenue is invoiced on a monthly or quarterly basis as services are performed and does not create a contract asset or liability. In addition to revenue from BPO services, revenue also consists of fees from services for program launch, professional consulting, fully-hosted or managed technology and learning innovation services. The contracts containing these service offerings may contain multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. The Company forecasts its expected cost based on historical data, current prevailing wages, other direct and indirect costs incurred in recently completed contracts, market conditions, and other client specific cost considerations. For these services, the point at which the transfer of control occurs determines when revenue is recognized in a specific reporting period. Within the TTEC Digital segment, where there are product sales, the attribution of revenue is recognized when the transfer of control is completed and the products are delivered to the client’s location. Where services are rendered to a customer, the attribution is aligned with the progress of work and is recognized over time (i.e. based on measuring the progress toward complete satisfaction of a performance obligation using an output method or an input method). Where an output method is used, revenue is recognized on the basis of direct measurements of the value to the customer of the goods or services transferred relative to the remaining goods or services promised under the contract. The majority of the Company’s services are recognized over time using the input method in which revenue is recognized on the basis of efforts or inputs toward satisfying a performance obligation (for example, resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to satisfy the performance obligation. The measures used provide faithful depiction of the transfer of goods or services to the customers. For example, revenue is recognized on certain consulting contracts based on labor hours expended as a measurement of progress where the consulting work involves input of consultants’ time. The progress is measured based on the hours expended over total number of estimated hours included in the contract multiplied by the total contract consideration. The contract consideration can be a fixed price or an hourly rate, and in either case, the use of labor hours expended as an input measure provides a faithful depiction of the transfer of services to the customers. Deferred revenues for these services represent amounts collected from, or invoiced to, customers in excess of revenues recognized. This results primarily from i) receipt of license fees that are deferred due to one or more of the revenue recognition criteria not being met, and ii) the billing of annual customer support agreements, annual managed service agreements, and billings for other professional services that have not yet been performed by the Company. The Company records amounts billed and received, but not earned, as deferred revenue. These amounts are recorded in either Deferred revenue or Other long-term liabilities, as applicable, in the accompanying Consolidated Balance Sheets based on the period over which the Company expects to render services. Costs directly associated with revenue deferred, consisting primarily of labor and related expenses, are also deferred and recognized in proportion to the expected future revenue from the contract. Variable consideration exists in contracts for certain client programs that provide for adjustments to monthly billings based upon whether the Company achieves, exceeds or fails certain performance criteria. Adjustments to monthly billings consist of contractual bonuses/penalties, holdbacks and other performance based conditions. Variable consideration is estimated at contract inception at its most likely value and updated at the end of each reporting period as additional performance data becomes available. Revenue related to such variable consideration is recognized only to the extent that a significant reversal of any incremental revenue is not considered probable. Contract modifications are routine in the performance of the customer contracts. Contracts are often modified to account for customer mandated changes in the contract specifications or requirements, including service level changes. In most instances, contract modifications relate to goods or services that are incremental and distinctly identifiable, and, therefore, are accounted for prospectively. Incremental Costs to Obtain a Contract Direct and incremental costs to obtain or fulfill a contract are capitalized, and the capitalized costs are amortized over the corresponding period of benefit, determined on a contract by contract basis. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a customer contract that it would not have incurred if the contract had not been obtained. Contract acquisition costs consist primarily of payment of commissions to sales personnel and are incurred when customer contracts are signed. The deferred sales commission amounts are amortized based on the expected period of economic benefit and are classified as current or non-current based on the timing of when they are expected to be recognized as an expense. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained. Sales commissions are paid for obtaining new clients only and are not paid for contract renewals or contract modifications. Capitalized costs of obtaining contracts are periodically reviewed for impairment. As of December 31, 2023 and 2022, the Company has a deferred asset of $8.5 million and $6.6 million, respectively, related to sales commissions. In certain cases, the Company negotiates an upfront payment to a customer in conjunction with the execution of a contract. Such upfront payments are critical to acquisition of new business and are often used as an incentive to negotiate favorable rates from the clients and are accounted for as upfront discounts for future services. Such payments are either made in cash at the time of execution of a contract or are netted against the Company’s service invoices. Payments to customers are capitalized as contract acquisition costs and are amortized in proportion to the expected future revenue from the contract, which in most cases results in straight-line amortization over the life of the contract. Such payments are considered a reduction of the selling prices of the Company’s products or services, and therefore, are accounted for as a reduction of revenue when amortized. Such capitalized contract acquisition costs are periodically reviewed for impairment taking into consideration ongoing future cash flows expected from the contract and estimated remaining useful life of the contract. Practical Expedients and Exemptions Some of the Company’s service contracts are short-term in nature with a contract term of one one Lease Expense The Company has negotiated certain rent holidays, landlord/tenant incentives and escalations in the base price of lease payments over the initial term of its operating leases. The initial term could include the “build-out” period of leases, where no lease payments are typically due. The Company recognizes rent holidays and rent escalations on a straight-line basis to lease expense over the lease term. The landlord/tenant incentives are recorded as a reduction to the right of use asset and depreciated on a straight line basis over the remaining lease term once the assets are placed in service. Equity-Based Compensation Expense Equity-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award, which is typically the vesting term of the share-based payment award. The Company estimates the forfeiture rate annually based on its historical experience of forfeited awards. Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated at the exchange rates in effect on the last day of the period and income and expenses are translated using the monthly average exchange rates in effect for the period in which the items occur. Foreign currency translation gains and losses are recorded in Accumulated other comprehensive income (loss) within Stockholders’ Equity. Foreign currency transaction gains and losses are included in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which now requires the acquirer to account for revenue contracts in accordance with Topic 606 as if it had acquired the contract, versus recording these assets and liabilities at fair value on acquisition date. The ASU is effective for interim and annual periods beginning on or after December 15, 2022 with early adoption permitted. The Company adopted the new guidance during the fourth quarter of 2021 which required application to all acquisitions completed during the adoption year. See further discussion in Note 2. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform” (Topic 848), which provides optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform due to the anticipated cessation of the London Interbank Offered Rate (“LIBOR”). The ASU is effective from March 12, 2020, may be applied prospectively and could impact the accounting for LIBOR provisions in the Company’s credit facility agreement. In addition, in January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform – Scope,” which clarified the scope of ASC 8 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2023 | |
ACQUISITIONS [ABSTRACT] | |
ACQUISITIONS | (2) ACQUISITIONS Serendebyte In connection with the acquisition by TTEC Digital, LLC of a 70% interest in Serendebyte Inc. (“Serendebyte”), Serendebyte’s founder exercised his put rights on December 8, 2023, which required TTEC to acquire the remaining 30% interest in Serendebyte. As part of the exercise, the Serendebyte founder failed to fulfill the agreed provisions of the sale and purchase agreement that parties executed on February 7, 2020. Pending completion of the put exercise formalities by Serendebyte’s founder, TTEC Digital is not able to determine the final purchase price for the remaining 30% buyout agreement. In connection with triggering the option, on December 8, 2023, a $0.3 million accrual was reclassified from Redeemable noncontrolling interest to Accrued expenses and the remaining balance was reclassified to Additional paid in capital. FCR Pursuant to the Membership Interest Purchase Agreement of October 26, 2019 between Ortana Holdings, Inc. and TTEC Services Corporation for the acquisition by TTEC of a 70% interest in First Call Resolution, LLC (“FCR” and “FCR MIPA”, respectively), Ortana Holdings exercised its put rights in January 2023, which required TTEC to acquire Ortana Holdings’ remaining 30% interest in FCR. The purchase price for the remaining 30% interest was determined based on the express provisions of the FCR MIPA and was based on FCR’s performance during 2022. The buyout agreement was signed on April 4, 2023 and reflected a buyout purchase price of $22.4 million. In connection with the triggering of the option, as of March 31, 2023, the $22.4 million purchase price was reclassified from Redeemable noncontrolling interest to Accrued expenses and the remaining balance of $20.5 million was reclassified to Additional paid in capital. In February 2023, a $9.2 million payment related to excess cash distribution was completed and in April 2023, the final payment of $22.4 million was completed. Certain Assets of Faneuil On April 1, 2022, the Company completed an asset acquisition through its subsidiary TTEC Government Solutions LLC, of certain public sector citizen experience contracts in the transportation infrastructure and healthcare exchange industries from Faneuil, Inc., a subsidiary of ALJ Regional Holdings, Inc., (“the Faneuil Transaction”). The acquired business is operated as part of the TTEC Engage segment and was fully consolidated into the financial statements of TTEC. The Faneuil Transaction was recorded as a business combination under ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date. Total cash paid at the time of acquisition was $142.4 million. In addition, Faneuil granted to TTEC Government Solutions LLC a three-year call right and right of first offer to purchase certain other assets of Faneuil in its utilities and commercial healthcare verticals as well as certain proprietary technology. The Faneuil Transaction includes two contingent payments which were anticipated to be paid in early 2024 which are based on the revenue and EBITDA performance of one contract and one potential contract. The fair value of the two contingent payments was estimated using a Monte Carlo model. The model was based on current expected EBITDA performance for the two specific client programs, a discount rate of 7.6% related to revenue and a discount rate of 19.3% related to EBITDA, a volatility rate of 20%, and an adjusted risk-free rate of 1.7%. The potential payments range from a minimum of zero to an unlimited maximum. Based on the model, a combined $8.8 million expected future payment was calculated and recorded as of the acquisition date. During 2022, a $2.9 million net gain was recorded related to fair value adjustments for the estimated contingent payments based on changes in estimated EBITDA, the timing of cash flows and market interest rates which resulted in an updated discount factor for one contract and a complete reduction for the second contract as it was not awarded to the Company. During the second quarter of 2023, an amendment to the agreement was signed which modified the contingent payment to a minimum payment of $7.4 million and a maximum payment of $10.4 million. An initial payment of $7.4 million was completed in May 2023. During 2023, a combined $3.0 million net expense was recorded related to fair value adjustments for the estimated contingent payment based on changes in estimated EBITDA, the timing of cash flows and market interest rate changes. These benefits (expenses) were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). As of December 31, 2023, the contingent payment is accrued at $1.5 million and is included in Other long-term liabilities in the accompanying Consolidated Balance Sheets. The Faneuil Transaction included a call option providing the right but not the obligation to purchase additional assets in the utilities and commercial healthcare verticals based on trailing twelve-month revenue plus an additional earn-out payment based on newly added contracts. A second call option provided the right to purchase a software intangible asset and related support functions based on trailing twelve-month revenue. These call options were valued based on information including the call right and the exclusivity period and a $270 thousand asset was recorded as of the acquisition date which is included in Other long-term assets in the accompanying Consolidated Balance Sheets. During the fourth quarter of 2022 and the first quarter of 2023, reductions in fair value of $52 thousand and $140 thousand, respectively, were recorded due to changes in estimated revenue, which were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). During the second quarter of 2023, an amendment to the agreement was signed which cancelled the option to purchase the additional assets in certain verticals, and, therefore, the remaining $78 thousand accrual was removed and included in Other income. As of December 31, 2023, the fair value is zero. The Faneuil Transaction included an indemnity escrow which was disbursed as a holdback payment on the acquisition date. The indemnity payments relate to real estate and technology funds that will be spent post-close related to various IT upgrades and real estate expenses, and indemnity related to potential future employee wage increases. The indemnity payments were valued based on a weighted average of several current scenarios and a receivable of $10.4 million was recorded as of the acquisition date. During 2022, reductions in the fair value were calculated and a combined $4.6 million expense was recorded related to fair value adjustments for the receivable based on current information reflecting a better outcome with the contract negotiations and lower anticipated IT and facilities spending. During 2023, the payout value related to the IT and facilities reimbursement was finalized at $1.3 million, and an expense of $4.4 million was recorded. The payment was received by TTEC in May 2023 and as of June 30, 2023, the receivables were reduced to zero on the Consolidated Balance Sheet. The reductions in fair value related expenses were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). A multi-period excess earnings method under the income approach was used to estimate the fair value of the customer relationships intangible assets. The significant assumptions utilized in calculating the fair value of the customer relationships intangible assets were the customer attrition rate, revenue growth rates, forecasted EBITDA, and the discount rate. The following summarizes the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ — Accounts receivable, net 704 Prepaid and other assets 8,420 Net fixed assets 5,622 Right of use lease assets 17,778 Other assets 2,572 Customer relationships 61,310 Goodwill 75,902 $ 172,308 Accrued employee compensation $ 202 Accrued expenses 2,763 Right of use lease liability - current 3,129 Right of use lease liability - non-current 14,092 Deferred income 811 Other liabilities 8,891 $ 29,888 Total purchase price $ 142,420 In the first quarter of 2023, the Company finalized the valuation of Faneuil for the acquisition date assets acquired and liabilities assumed and determined that no material adjustments to any of the balances were required. The Faneuil customer relationships are being amortized over a useful life of 10 years Avtex On April 8, 2021, the Company acquired, through its subsidiary TTEC Digital, LLC, 100% of the outstanding stock of Avtex Solutions Holdings, LLC (“Avtex”). Avtex is an end-to-end customer experience and CXaaS solutions provider with offerings in Genesys and Microsoft cloud solutions. The business is operated as part of the TTEC Digital segment and is being fully consolidated into the financial statements of TTEC. Total cash paid at acquisition was $499.946 million ($490.0 million base purchase price plus cash, less debt and working capital estimate). The Avtex transaction is subject to customary representations and warranties, holdbacks, and a net working capital adjustment. The Company used cash from operations and drew down on its Credit Facility to fund the acquisition. The Company finalized the net working capital adjustment for $0.1 million during the third quarter of 2021 which was paid by Avtex to the Company in the third quarter of 2021. During the fourth quarter of 2021, TTEC implemented ASU 2021-08 which required an accounting modification to the deferred revenue balance as of the acquisition date (see discussion above in Note 1). The deferred revenue balance was evaluated as if TTEC had been the company securing the initial contract and accounted for these contracts in accordance with ASC 606. Based on this re-assessment, the $4.9 million reduction initially recorded to deferred revenue in connection with the purchase price accounting was eliminated and an offsetting increase to Goodwill was recorded as of the acquisition date. In connection with this modification, revenue of $3.4 million was recorded in the fourth quarter of 2021 related to deferred revenue from the second and third quarters of 2021. A multi-period excess earnings method under the income approach was used to estimate the fair value of the customer relationships intangible asset. The significant assumptions utilized in calculating the fair value of the customer relationships intangible asset were the customer attrition rate, revenue growth rates, forecasted EBITDA, contributory asset charge, and the discount rate. The following summarizes the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ 18,638 Accounts receivable, net 22,214 Prepaid expenses 26,389 Current income tax receivables 93 Net fixed assets 3,162 Right of use lease assets 3,614 Other assets 480 Tradename 5,300 Intellectual property intangible 770 Customer relationships 128,200 Goodwill 378,882 $ 587,742 Accounts payable $ 20,580 Accrued employee compensation 4,325 Accrued expenses 250 Right of use lease liability - current 678 Deferred revenue 56,765 Accrued income taxes 332 Deferred tax liability 1,930 Right of use lease liability - noncurrent 2,936 $ 87,796 Total purchase price $ 499,946 In the first quarter of 2022, the Company finalized the valuation of Avtex for the acquisition date assets acquired and liabilities assumed and determined that no material adjustments to any of the balances were required. The Avtex customer relationships, intellectual property intangible, and tradename are being amortized over useful lives of 9 3 1 years Financial Impact of Acquired Businesses The acquired businesses purchased in 2022 and 2021 noted above contributed revenues of $422.8 million and $355.9 million, and a net income of $81.3 million and $22.2 million, to the Company for the years ended December 31, 2023 and 2022, respectively. The unaudited proforma financial results for the twelve months ended 2022 combines the consolidated results of the Company and Faneuil assuming the acquisition had been completed on January 1, 2021, The reported revenue and net income of $2,443.7 million and $103.2 million would have been $2,485.7 million and $106.6 million for the year ended December 31, 2022, respectively, on an unaudited proforma basis. The unaudited proforma financial results for the twelve months ended 2021 combines the consolidated results of the Company, Fanueil assuming the acquisition had been completed on January 1, 2021, and Avtex assuming the acquisition had been completed on January 1, 2020. The reported revenue and net income of $2,273.1 million and $141.0 million would have been $2,447.3 million and $156.3 million for the year ended December 31, 2021, respectively, on an unaudited proforma basis. The Company did not have any material, nonrecurring proforma adjustments directly attributable to the business combinations included in the reported proforma revenue earnings. These proforma amounts have been calculated after applying the Company’s accounting policies and adjusting the respective acquired businesses’ results to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment, and intangible assets had been applied from the date indicated, with the consequential tax effects. The unaudited proforma consolidated results are not to be considered indicative of the results if these acquisitions occurred in the periods mentioned above, or indicative of future operations or results. Additionally, the proforma consolidated results do not reflect any anticipated synergies expected as a result of the acquisition. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION [ABSTRACT] | |
SEGMENT INFORMATION | (3) SEGMENT INFORMATION The Company reports the following two segments: TTEC Digital and the CX Technology Services Industry TTEC Digital buyers are seeking solutions in several areas including cost optimization, migration from outdated legacy platforms to more agile cloud environments, lack of CX talent and expertise and a need for a practical way forward with AI. TTEC Digital takes a technology agnostic approach to these challenges and focuses on designing and delivering solutions specific to each client’s specifications. TTEC Digital has entered into strategic partnerships with the leading CX software vendors including Genesys, Microsoft, Cisco, AWS and Google which positions TTEC Digital to support the majority of CX platform requirements. TTEC Digital’s solutions are built to respond to market needs for both enterprise and small and medium-sized business clients. AI design and delivery capabilities are woven across all four pillars. • Managed Services: Cloud application and premise support • CX Consulting: Transformation strategy and design • CX Analytics: Data science, engineering, and visualization • IP & Software: Custom software engineering through TTEC Digital’s IP and Software division The segment has a three-pronged go to market strategy that includes growing existing client relationships, partner channel motions and general market development. In 2023, TTEC Digital expanded its Hyderabad Innovation Studio in India with the goal of continuing to expand its offshore delivery capabilities, and currently approximately 40% of the staff are located in one of several offshore locations. TTEC Engage and the CX BPO Services Industry The TTEC Engage segment’s solutions are built to respond to the following market needs for clients. • Customer Support • Tech Support • Revenue Generation and Growth Services • Trust & Safety • AI Operations, including data annotation and labeling • Back-office Support TTEC Engage goes to market through a vertical approach with customized solutions that include industry specific talent, technology, certifications, and capabilities. For example, in the Banking, Financial Services and Insurance (BFSI) vertical, we support several lines of business with customized offerings for retail banking, online banking, credit card, property and casualty and loans. In healthcare, the segment supports care, technical support, revenue generation and back-office capabilities to meet the needs of payer, provider, clinical and pharma clients. The Company allocates to each segment its portion of corporate operating expenses. All intercompany transactions between the reported segments for the periods presented have been eliminated. The following tables present certain financial data by segment (in thousands): Year Ended December 31, 2023 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 486,882 $ — $ 486,882 $ 27,232 $ 29,846 TTEC Engage 1,975,935 — 1,975,935 74,040 88,175 Total $ 2,462,817 $ — $ 2,462,817 $ 101,272 $ 118,021 Year Ended December 31, 2022 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 463,667 $ 3 $ 463,670 $ 32,321 $ 34,895 TTEC Engage 1,980,037 — 1,980,037 79,470 133,648 Total $ 2,443,704 $ 3 $ 2,443,707 $ 111,791 $ 168,543 Year Ended December 31, 2021 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 414,148 $ (44) $ 414,104 $ 30,468 $ 35,437 TTEC Engage 1,858,965 (7) 1,858,958 66,238 181,755 Total $ 2,273,113 $ (51) $ 2,273,062 $ 96,706 $ 217,192 For the Year Ended December 31, 2023 2022 2021 Capital Expenditures TTEC Digital $ 8,232 $ 9,155 $ 8,919 TTEC Engage 59,607 74,857 51,439 Total $ 67,839 $ 84,012 $ 60,358 December 31, 2023 2022 2021 Total Assets TTEC Digital $ 815,488 $ 811,258 $ 828,255 TTEC Engage 1,370,110 1,342,704 1,168,549 Total $ 2,185,598 $ 2,153,962 $ 1,996,804 The following tables present certain financial data based upon the geographic location where the services are provided (in thousands): As of and for the Year Ended December 31, 2023 2022 2021 Revenue United States / Canada $ 1,710,716 $ 1,738,053 $ 1,570,791 Philippines / Asia Pacific / India 477,455 457,526 476,395 Europe / Middle East / Africa 142,665 131,575 110,909 Latin America 131,981 116,553 114,967 Total $ 2,462,817 $ 2,443,707 $ 2,273,062 Property, plant and equipment, gross United States / Canada $ 506,092 $ 631,459 $ 620,407 Philippines / Asia Pacific / India 170,403 162,857 173,075 Europe / Middle East / Africa 30,290 21,435 19,594 Latin America 45,731 41,892 47,540 Total $ 752,516 $ 857,643 $ 860,616 Other long-term assets United States / Canada $ 90,810 $ 56,372 $ 68,052 Philippines / Asia Pacific / India 7,752 8,826 6,622 Europe / Middle East / Africa 2,021 1,306 1,735 Latin America 990 1,230 864 Total $ 101,573 $ 67,734 $ 77,273 |
ACCOUNTS RECEIVABLE AND SIGNIFI
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS | (4) ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS Accounts receivable, net in the accompanying Consolidated Balance Sheets consists of the following (in thousands): December 31, 2023 2022 Accounts receivable $ 397,116 $ 421,161 Less: Allowance for credit losses (2,248) (3,524) Accounts receivable, net $ 394,868 $ 417,637 At the end of each quarter, an allowance for credit losses has been calculated based on the current quarterly revenue multiplied by the historical loss percentage of the prior three-year period and recorded in the income statement. In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against this allowance when the Company determines a balance is uncollectible. Activity in the Company’s Allowance for credit losses consists of the following (in thousands): December 31, 2023 2022 2021 Balance, beginning of year $ 3,524 $ 5,409 $ 5,067 Provision for credit losses 2,009 9,391 (350) Uncollectible receivables written-off (3,641) (11,278) (281) Effect of foreign currency and other 356 2 (15) Acquisition — — 988 Balance, end of year $ 2,248 $ 3,524 $ 5,409 Significant Clients The Company had one client that contributed in excess of 10% of total revenue for each of the years ended December 31, 2023, 2022 and 2021. The 2023 and 2022 client operates in the automotive industry and is included in the TTEC Engage segment. The 2021 client operates in the financial services sector and is included in the TTEC Engage segment. The revenue from these clients as a percentage of total revenue is as follows: Year Ended December 31, 2023 2022 2021 Automotive client 10 % 10 % 9 % Financial services client 8 % 7 % 12 % Accounts receivable from these clients was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Automotive client $ 35,514 $ 38,539 $ 36,466 Financial services client $ 11,656 $ 14,019 $ 15,483 The Company does have clients with aggregate 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 mitigate this risk, the Company’s business arrangements with these larger clients are structured as multiple contracts with different statements of work that are specific to a different line of business service; each of these contracts have different durations and renewal dates and a revenue opportunity below the $100 million aggregate. In early 2024, one of our larger financial services clients notified us that it is exiting one of the lines of business that we support. To limit the Company’s credit risk with its clients, management performs periodic credit evaluations, maintains allowances for credit losses and may require pre-payment for services from certain clients whose financial stability practices raise concerns. Based on currently available information, management does not believe significant credit risk exists as of December 31, 2023. Accounts Receivable Factoring Agreement The Company is party to an Uncommitted Receivables Purchase Agreement (“Agreement”) with BMO Bank, N.A. (“Bank”, “BMO”), whereby from time-to-time the Company may elect to sell, on a revolving basis, U.S. accounts receivables of certain clients at a discount to the Bank for cash on a limited recourse basis. The maximum amount of receivables that the Company may sell to the Bank at any given time shall not exceed $100 million. The sales of accounts receivable in accordance with the Agreement are reflected as a reduction of Accounts Receivable, net on the Consolidated Balance Sheets. The Company has retained no interest in the sold receivables but retains all collection responsibilities on behalf of the Bank. The discount on the accounts receivable sold will be recorded within Other expense, net in the Consolidated Statements of Comprehensive Income (Loss). The cash proceeds from this Agreement are included in the change in accounts receivable within the operating activities section of the Consolidated Statements of Cash Flows. The balances related to the Factoring agreement are as follows (in thousands): December 31, 2023 2022 Total accounts receivable factored $ 99,994 $ 99,503 Total amounts collected from clients not yet remitted to Bank $ 1,158 $ 13,602 The unremitted cash is restricted cash and is included within Prepaid and Other Current Assets with the corresponding liability included in Accrued Expenses on the Consolidated Balance Sheet. The Company has not recorded any servicing assets or liabilities as of December 31, 2023 and 2022 as the fair value of the servicing arrangement as well as the fees earned were not material to the financial statements. Effective November 1, 2022, the Company amended the arrangement to modify the list of eligible clients whose accounts receivable may be sold pursuant to the Agreement, and to memorialize the transition from LIBOR to SOFR for discount calculation purposes. On July 21, 2023, BMO Financial Group completed its acquisition of the Bank of the West from PNB Bank Paribas. The Agreement transitioned with the acquisition and TTEC has no reason to believe that BMO would not wish to continue its business arrangements with the Company. On January 2, 2024, the Company amended the arrangement to adjust the discount rate to reflect BMO’s updated market pricing levels and other minor items. |
PROPERTY PLANT AND EQUIPMENT
PROPERTY PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY PLANT AND EQUIPMENT [ABSTRACT] | |
PROPERTY, PLANT AND EQUIPMENT | (5) PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following (in thousands): December 31, 2023 2022 Land and buildings $ 31,972 $ 32,070 Computer equipment and software 428,164 527,096 Telephone equipment 40,955 46,235 Furniture and fixtures 75,338 80,843 Leasehold improvements 175,964 171,141 Motor vehicles 123 258 Property, plant and equipment, gross 752,516 857,643 Less: Accumulated depreciation and amortization (561,513) (674,283) Property, plant and equipment, net $ 191,003 $ 183,360 Depreciation and amortization expense for property, plant and equipment was $64.2 million, $64.5 million and $63.5 million for the years ended December 31, 2023, 2022 and 2021, respectively. Included in the computer equipment and software is internally developed software of $48.4 million net and $26.8 million net as of December 31, 2023 and 2022, respectively. During 2023, 2022 and 2021, impairments of internally developed software of $0.1 million, $6.0 million and $3.2 million, respectively, were expensed and included in Impairment losses in the Consolidated Statements of Comprehensive Income (Loss). |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL [ABSTRACT] | |
GOODWILL. | (6) GOODWILL Goodwill consisted of the following (in thousands): Effect of December 31, Acquisitions / Foreign December 31, 2022 Adjustments Impairments Currency 2023 TTEC Digital $ 502,806 $ (2,763) $ — $ 533 $ 500,576 TTEC Engage 305,039 2,763 — 610 308,412 Total $ 807,845 $ — $ — $ 1,143 $ 808,988 Effect of December 31, Acquisitions / Foreign December 31, 2021 Adjustments Impairments Currency 2022 TTEC Digital $ 505,222 $ — $ — $ (2,416) $ 502,806 TTEC Engage 234,259 75,896 — (5,116) 305,039 Total $ 739,481 $ 75,896 $ — $ (7,532) $ 807,845 Impairment The Company has three reporting units with goodwill and performs a goodwill impairment test on at least an annual basis. The Company conducts its annual goodwill impairment test during the fourth quarter, or more frequently, if indicators of impairment exist. For the annual goodwill impairment analysis, the Company elected to perform a Step 1 evaluation for all of its reporting units, which includes comparing a reporting unit’s estimated fair value to its carrying value. The determination of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term growth rates for the businesses, the useful lives over which the cash flows will occur and determination of appropriate discount rates (based in part on 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. As of December 1, 2023, the date of the annual impairment testing, the Company concluded that for all three of the reporting units the fair values were in excess of their respective carrying values and the goodwill for those reporting units was not impaired. During the Company’s annual impairment testing as of December 1, 2023, the Company identified one reporting unit, Engage, being at risk for future impairment if projected operating results are not met or other inputs into the fair value measurement change. The carrying value of Engage was $1,092.1 million at December 1, 2023, including approximately $308.4 million of goodwill. Based on the Company’s assessment, the estimated fair value of the Engage reporting unit exceeded its carrying value by approximately 13.0%. If all assumptions are held constant, either a 1.7% increase in the discount rate or a 2.0% annual decrease in the projected revenue over the forecast period, would result in approximately $138.0 million decrease in the estimated fair value of the Engage reporting unit. Such a change in either of these assumptions individually would have resulted in the Engage reporting unit failing Step 1 of the goodwill impairment analysis on December 1, 2023. As an international outsourcing agent, Engage’s revenue and cash flows are susceptible to global economic conditions and client business volumes. In performing the Step 1 evaluation, the reporting unit’s current backlog and pipeline of customer business were considered, as well as inflation rates, gross domestic product rates, historical revenue growth and profitability, and state of the CX industry. The estimate of fair value was based on generally accepted valuation techniques and information available at the date of the assessment, which incorporated management’s assumptions about expected revenues, future cash flows and available market information for comparable companies. 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 a market approach and an income approach to determine our best estimates of fair value which incorporated the following significant assumptions: ● Revenue projections, including revenue growth during the forecast periods ranging from (4.0)% to 16.5% ; ● EBITDA margin projections held relatively flat over the forecast periods ranging from 10.0% to 18.0% ; ● Estimated income tax rates of 26.4% to 26.6% ; ● Estimated capital expenditures ranging from $0.1 million to $57.8 million; and ● Discount rates ranging from 12.0% to 15.8% based on various inputs, including the risks associated with the specific reporting units, the country of operations as well as their revenue growth and EBITDA margin assumptions. |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
OTHER INTANGIBLE ASSETS [Abstract] | |
Intangible Assets Disclosure [Text Block] | (7) OTHER INTANGIBLE ASSETS Other intangible assets which are included in Other long-term assets in the accompanying Consolidated Balance Sheets consisted of the following (in thousands): Acquisitions Effect of December 31, and Foreign December 31, 2022 Amortization Impairments Adjustments Currency 2023 Customer relationships, gross $ 355,717 $ — $ — $ — $ (967) $ 354,750 Customer relationships - accumulated amortization (123,882) (33,768) — — 426 (157,224) Other intangible assets, gross 19,712 — — — 659 20,371 Other intangible assets - accumulated amortization (17,638) (1,810) — — (16) (19,464) Other intangible assets, net $ 233,909 $ (35,578) $ — $ — $ 102 $ 198,433 Acquisitions Effect of December 31, and Foreign December 31, 2021 Amortization Impairments Adjustments Currency 2022 Customer relationships, gross $ 299,948 $ — $ — $ 61,310 $ (5,541) $ 355,717 Customer relationships - accumulated amortization (93,582) (33,244) — — 2,944 (123,882) Other intangible assets, gross 19,731 — — — (19) 19,712 Other intangible assets - accumulated amortization (13,748) (3,899) — — 9 (17,638) Other intangible assets, net $ 212,349 $ (37,143) $ — $ 61,310 $ (2,607) $ 233,909 The acquisition recorded during 2022 relates to the purchase of Faneuil (see Note 2 for further information). Customer relationships are being amortized over the remaining weighted average useful life of 6.1 1.6 Expected future amortization of other intangible assets as of December 31, 2023 is as follows (in thousands): 2024 $ 33,042 2025 31,092 2026 31,033 2027 31,033 2028 30,261 Thereafter 41,972 Total $ 198,433 |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVES [ABSTRACT] | |
DERIVATIVES | (8) DERIVATIVES Cash Flow Hedges The Company enters into foreign exchange related derivatives. Foreign exchange derivatives entered into consist of forward and option contracts to reduce the Company’s exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. Upon proper qualification, these contracts are designated as cash flow hedges. It is the Company’s policy to only enter into derivative contracts with investment grade counterparty financial institutions, and correspondingly, the fair value of derivative assets considers, among other factors, the creditworthiness of these counterparties. Conversely, the fair value of derivative liabilities reflects the Company’s creditworthiness. As of December 31, 2023, the Company had not experienced, nor does it anticipate, any issues related to derivative counterparty defaults. The following table summarizes the aggregate unrealized net gain or loss in Accumulated other comprehensive income (loss) for the years ended December 31, 2023, 2022 and 2021 (in thousands and net of tax): Year Ended December 31, 2023 2022 2021 Aggregate unrealized net gain/(loss) at beginning of period $ 89 $ (40) $ 8,431 Add: Net gain/(loss) from change in fair value of cash flow hedges 3,292 2,281 (12,126) Less: Net (gain)/loss reclassified to earnings from effective hedges 2,934 (2,152) 3,655 Aggregate unrealized net gain/(loss) at end of period $ 6,315 $ 89 $ (40) The Company’s foreign exchange cash flow hedging instruments as of December 31, 2023 and 2022 are summarized as follows (in thousands). All hedging instruments are forward contracts. Local Currency U.S. Dollar % Maturing Contracts Notional Notional in the next Maturing As of December 31, 2023 Amount Amount 12 months Through Canadian Dollar 2,250 $ 1,670 100.0 % September 2024 Philippine Peso 9,324,000 165,842 (1) 58.7 % December 2026 Mexican Peso 938,000 44,155 60.8 % December 2026 $ 211,667 Local Currency U.S. Dollar Notional Notional As of December 31, 2022 Amount Amount Canadian Dollar 12,000 $ 9,177 Philippine Peso 8,617,000 157,855 (1) Mexican Peso 1,024,500 44,690 $ 211,722 (1) Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on December 31, 2023 and December 31, 2022. Fair Value Hedges The Company enters into foreign exchange forward contracts to economically hedge against foreign currency exchange gains and losses on certain receivables and payables of the Company’s foreign operations. Changes in the fair value of derivative instruments designated as fair value hedges are recognized in earnings in Other income (expense), net. As of December 31, 2023 and 2022, the total notional amount of the Company’s forward contracts used as fair value hedges was $73.3 million and $80.8 million, respectively. Derivative Valuation and Settlements The Company’s derivatives as of December 31, 2023 and 2022 were as follows (in thousands): December 31, 2023 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 7,527 $ 327 Other long-term assets 2,415 — Other current liabilities (1,214) (120) Other long-term liabilities (197) — Total fair value of derivatives, net $ 8,531 $ 207 December 31, 2022 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 4,001 $ 281 Other long-term assets 3,019 — Other current liabilities (5,157) (76) Other long-term liabilities (1,748) — Total fair value of derivatives, net $ 115 $ 205 The effect of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2023 and 2022 were as follows (in thousands): Year Ended December 31, 2023 2022 Designated as Hedging Designation: Instruments Derivative contract type: Foreign Exchange Derivative classification: Cash Flow Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax $ 2,934 $ (2,152) Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ 3,964 $ (2,906) Year Ended December 31, 2023 2022 Designation: Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Derivative classification: Fair Value Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss): Other income (expense), net $ 1,882 $ 827 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE [Abstract] | |
FAIR VALUE | (9) FAIR VALUE The authoritative guidance for fair value measurements establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following presents information as of December 31, 2023 and 2022 of the Company’s assets and liabilities required to be measured at fair value on a recurring basis, as well as the fair value hierarchy used to determine their fair value. Accounts Receivable and Payable Investments – Debt Derivatives - The following is a summary of the Company’s fair value measurements for its net derivative assets (liabilities) as of December 31, 2023 and 2022 (in thousands): As of December 31, 2023 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 $ — $ 8,531 $ — $ 8,531 Fair value hedges — 207 — 207 Total net derivative asset (liability) $ — $ 8,738 $ — $ 8,738 As of December 31, 2022 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 $ — $ 115 $ — $ 115 Fair value hedges — 205 — 205 Total net derivative asset (liability) $ — $ 320 $ — $ 320 The following is a summary of the Company’s fair value measurements as of December 31, 2023 and 2022 (in thousands): As of December 31, 2023 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ 8,738 $ — Deferred compensation plan asset 31,082 — — Total assets $ 31,082 $ 8,738 $ — Liabilities Derivative instruments, net $ — $ — $ — Contingent consideration — — (1,496) Total liabilities $ — $ — $ (1,496) Redeemable noncontrolling interest $ — $ — $ — As of December 31, 2022 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ 320 $ — Deferred compensation plan asset 25,046 — — Contingent consideration — — 5,724 Total assets $ 25,046 $ 320 $ 5,724 Liabilities Derivative instruments, net $ — $ — $ — Contingent consideration — — (5,916) Total liabilities $ — $ — $ (5,916) Redeemable noncontrolling interest $ — $ — $ (55,645) Deferred Compensation Plan Contingent Consideration During 2020 and 2021, the Company recorded fair value adjustments to the contingent consideration associated with the VF US and VF ASEAN acquisitions based on increased actual results and estimates of EBITDA for 2021 which caused the payables to increase. Accordingly, a combined $4.3 million increase, and a combined $1.2 million increase to the payables were recorded, respectively, and were included in Other income (expense), net in the Consolidated Statements of Comprehensive Income (Loss). The future contingent consideration for the VF US and VF ASEAN acquisitions were finalized at $9.6 million and were paid in March 2022. During 2022 and 2023, fair value adjustments of a combined $2.9 million benefit and a combined $3.0 million expense, respectively, were recorded related to fair value adjustments of the estimated contingent payments associated with the Faneuil acquisition based on updated discount factors, the passage of time, updated EBITDA estimates and a modification to the agreement (see Note 2) for one contract and a complete reduction for the second contract as it was not awarded to the Company. The fair value adjustment benefits(expenses) were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). Contingent Receivables A rollforward of the activity in the Company’s fair value of the contingent consideration payable is as follows (in thousands): Imputed December 31, Interest / December 31, 2022 Acquisitions Payments Adjustments 2023 Faneuil $ (5,916) $ — $ 7,400 $ (2,980) $ (1,496) Total $ (5,916) $ — $ 7,400 $ (2,980) $ (1,496) Imputed December 31, Interest / December 31, 2021 Acquisitions Payments Adjustments 2022 VF US $ (7,414) $ — $ 7,414 $ — $ — VF ASEAN (2,186) — 2,186 — — Faneuil — (8,816) — 2,900 (5,916) Total $ (9,600) $ (8,816) $ 9,600 $ 2,900 $ (5,916) A rollforward of the activity in the Company’s fair value of the contingent consideration receivable is as follows (in thousands): Imputed December 31, Interest / December 31, 2022 Acquisitions Payments Adjustments 2023 Faneuil $ 5,724 $ — $ (1,343) $ (4,381) $ — Total $ 5,724 $ — $ (1,343) $ (4,381) $ — Imputed December 31, Interest / December 31, 2021 Acquisitions Payments Adjustments 2022 Faneuil $ — $ 10,370 $ — $ (4,646) $ 5,724 Total $ — $ 10,370 $ — $ (4,646) $ 5,724 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES [ABSTRACT] | |
INCOME TAXES | (10) INCOME TAXES The sources of pre-tax operating income are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Domestic $ (39,871) $ 52,887 $ 108,160 Foreign 80,595 91,561 99,724 Total $ 40,724 $ 144,448 $ 207,884 The Company’s selection of an accounting policy with respect to both the GILTI and BEAT rules is to compute the related taxes in the period the entity becomes subject to either. A reasonable estimate of the effects of these provisions has been included in the 2023 annual financial statements. During the fourth quarter of 2023, the Company released its indefinite reinvestment assertion related to earnings for all foreign operations. The Company has completed its analysis in regard to the full tax impact of these changes in indefinite reinvestment reassertion and any related taxes have been recorded. The Company generally intends to limit distributions from non-U.S. subsidiaries to cash balances available in foreign jurisdictions. No additional income taxes have been provided for any remaining outside basis difference inherent in the Company’s foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. The Company has an estimated $176 million of outside basis differences as of December 31, 2023. Determination of any unrecognized deferred tax liability related to the outside basis difference in investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates. The Organization for Economic Co-operation and Development (OECD), supported by 140 of their member countries, have agreed to implement a minimum 15% tax rate on certain multinational enterprises and have released model guidance. This global minimum tax, known as the Pillar 2 framework, will become effective across various countries starting in 2024, as each country works to enact legislation influenced by the OECD Pillar 2 rules. While the Company does not expect the adoption of the Pillar Two framework to have a material impact on our effective tax rate, the Company continues to evaluate additional guidance released by the OECD, along with the pending and adopted legislation in each of the countries in which we operate. The components of the Company’s Provision for (benefit from) income taxes are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current provision for (benefit from) Federal $ 3,625 $ 10,816 $ 20,697 State 1,893 5,245 8,006 Foreign 24,470 22,055 20,161 Total current provision for (benefit from) 29,988 38,116 48,864 Deferred provision for (benefit from) Federal (14,357) (3,128) (7,017) State (848) (192) (402) Foreign 7,677 (7,681) 8,250 Total deferred provision for (benefit from) (7,528) (11,001) 831 Total provision for (benefit from) income taxes $ 22,460 $ 27,115 $ 49,695 The following reconciles the Company’s effective tax rate to the federal statutory rate (in thousands): Year Ended December 31, 2023 2022 2021 Income tax per U.S. federal statutory rate (21%, 21%, 21%) $ 8,552 $ 30,334 $ 43,655 State income taxes, net of federal deduction (1,355) 2,717 4,588 Change in valuation allowances 14,917 (3,278) 12,567 Foreign income taxes at different rates than the U.S. 208 1,202 (1,416) Taxes related to compensation 1,542 (66) (2,788) Liabilities for uncertain tax positions 1,759 (1,435) (790) Impacts of foreign branch operations (283) 2,315 (187) Non-taxable earnings of noncontrolling interest (1,508) (2,638) (3,085) Foreign dividend less foreign tax credits (1,294) (1,616) (1,142) State and Federal income tax credits and NOL's (4,611) (4,604) (4,531) Foreign earnings taxed currently in U.S. 2,409 2,978 1,930 Taxes related to prior year filings 675 (432) (1,192) Other 1,449 1,638 2,086 Income tax per effective tax rate $ 22,460 $ 27,115 $ 49,695 Effective tax rate percentage 55.2% 18.8% 23.9% The Company’s deferred income tax assets and liabilities are summarized as follows (in thousands): Year Ended December 31, 2023 2022 Deferred tax assets, gross Accrued compensation and employee benefits $ 12,687 $ 11,627 Allowance for credit losses, insurance and other accruals 7,855 4,109 Amortization of deferred lease liabilities 21,683 18,475 Net operating losses 22,241 18,312 Customer acquisition and deferred revenue accruals 15,991 18,749 Federal and state tax credits, net 3,456 3,247 Investments 7,626 1,149 Depreciation and amortization 19,570 7,896 Unremitted foreign earnings 13,412 — Interest expense 14,957 — Other 630 3,931 Total deferred tax assets, gross 140,108 87,495 Valuation allowances (39,902) (24,944) Total deferred tax assets, net 100,206 62,551 Deferred tax liabilities Intangible assets (41,447) (28,848) Operating lease assets (18,362) (15,594) Other (5,383) (3,254) Total deferred tax liabilities (65,192) (47,696) Net deferred tax assets $ 35,014 $ 14,855 Quarterly, the Company assesses the likelihood by jurisdiction that its net deferred tax assets will be recovered. Based on the weight of all available evidence, both positive and negative, the Company records a valuation allowance against deferred tax assets when it is more-likely-than-not that a future tax benefit will not be realized. As of December 31, 2023 the Company had approximately $38.2 million of net deferred tax assets in the U.S. and $3.1 million deferred tax liability across their foreign operations. As of December 31, 2023 the deferred tax valuation allowance was $39.9 million and related primarily to interest expense limitations and tax losses in foreign jurisdictions which do not meet the “more-likely-than-not” standard under current accounting guidance. When there is a change in judgment concerning the recovery of deferred tax assets in future periods, a valuation allowance is recorded into earnings during the quarter in which the change in judgment occurred. In 2023, the Company made adjustments to its deferred tax assets and corresponding valuation allowances. The net change to the valuation allowance consisted of the following: a $15.3 million increase related to interest expense limitation carry forwards, state net operating losses and foreign tax credits not expected to be utilized in the United States; a $3.1 million increase in valuation allowance in Australia, Mexico, Brazil, the United Kingdom and various other jurisdictions for deferred tax assets that do not meet the “more-likely-than-not” standard; and a $3.5 million release of valuation allowance in Canada, the United Kingdom, the Netherlands, and various other jurisdictions related to the utilization or write-off of deferred tax assets. Activity in the Company’s valuation allowance accounts consists of the following (in thousands): Year Ended December 31, 2023 2022 2021 Beginning balance $ 24,944 $ 29,620 $ 18,697 Additions of deferred income tax expense 18,410 2,248 14,660 Reductions of deferred income tax expense (3,452) (6,924) (3,737) Ending balance $ 39,902 $ 24,944 $ 29,620 As of December 31, 2023, after consideration of all tax loss carry back opportunities, the Company had tax affected tax loss carry forwards worldwide expiring as follows (in thousands): 2024 $ 10 2025 245 2026 971 2027 375 After 2027 9,621 No expiration 11,024 Total $ 22,246 The Company has been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines and Costa Rica. Generally, a Tax Holiday is an agreement between the Company and a foreign government under which the Company receives certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, the Company has been granted multiple agreements under local laws which result in an overall reduced tax rate. These incentives have varying benefit year over year and expire at various times beginning in 2031. The aggregate benefit to income tax expense for the years ended December 31, 2023, 2022 and 2021 was approximately $2.3 million, $1.6 million and $6.3 million, respectively, which had a favorable impact on diluted net income per share of $0.05, $0.04 and $0.13, respectively. Accounting for Uncertainty in Income Taxes In accordance with ASC 740, the Company has recorded a reserve for uncertain tax positions. The total amount of interest and penalties recognized in the accompanying Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss) as of December 31, 2023, 2022 and 2021 was approximately $2.7 million, $1.8 million and $2.8 million, respectively. The Company had a reserve for uncertain tax benefits, on a net basis, of $6.6 million and $6.6 million for the years ended December 31, 2023 and 2022, respectively. The tabular reconciliation of the reserve for uncertain tax benefits on a gross basis without interest for the three years ended December 31, 2023 is presented below (in thousands): Balance as of December 31, 2020 $ 7,509 Additions for current year tax positions 220 Reductions in prior year tax positions (826) Balance as of December 31, 2021 6,903 Additions for current year tax positions 143 Reductions in prior year tax positions (479) Balance as of December 31, 2022 6,567 Additions for current year tax positions 212 Reductions in prior year tax positions (203) Balance as of December 31, 2023 $ 6,576 At December 31, 2023, the amount of uncertain tax benefits including interest, that, if recognized, would reduce tax expense was $9.3 million. Within the next 12 months, it is expected that the amount of unrecognized tax benefits may be reduced by $0.3 million as a result of the expiration of various statutes of limitation or other confirmations of tax positions. The Company and its domestic and foreign subsidiaries (including Percepta LLC and its domestic and foreign subsidiaries) file income tax returns as required in the U.S. federal jurisdiction and various state and foreign jurisdictions. The following table presents the major tax jurisdictions and tax years that are open as of December 31, 2023 and subject to examination by the respective tax authorities: Tax Jurisdiction Tax Year Ended United States 2017 - Present Australia 2019 - Present India 2017 - Present Canada 2019 - Present Mexico 2018 - Present Philippines 2019 - Present The Company’s U.S. income tax returns filed for the tax years ending December 31, 2017 to present, remain open tax years. The Company has been notified of the intent to audit, or is currently under audit of, income taxes for the United States for tax year 2017 and 2018, the Philippines for tax year 2020, the state of California in the United States for tax years 2017 and 2018, the state of Wisconsin in the U.S. for tax years 2019 through 2021, and India for tax years 2017 through 2022. Although the outcome of examinations by taxing authorities are always uncertain, it is the opinion of management that the resolution of these audits will not have a material effect on the Company’s Consolidated Financial Statements. |
IMPAIRMENT OF ASSETS
IMPAIRMENT OF ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | (11) IMPAIRMENT OF ASSETS The Company evaluated the recoverability of its leasehold improvement assets at certain customer engagement centers as well as all internally developed software projects. An asset group is considered to be impaired when the anticipated undiscounted future cash flows of its asset group is estimated to be less than the asset group’s carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. During 2023, 2022 and 2021, the Company recognized impairment losses, net related to leasehold improvement assets, right of use lease assets, internally developed software and certain computer equipment of $11.7 million, $13.7 million and $11.3 million, respectively, across the TTEC Digital and TTEC Engage segments. |
INDEBTEDNESS
INDEBTEDNESS | 12 Months Ended |
Dec. 31, 2023 | |
INDEBTEDNESS [ABSTRACT] | |
INDEBTEDNESS | (12) INDEBTEDNESS Credit Facility On November 23, 2021, the Company entered into a Sixth Amendment to the Amended and Restated Credit Agreement (“the Credit Agreement”) originally dated June 3, 2013, (collectively, the “Credit Facility”) to convert the $300 million term loan included in the total Credit Facility commitments, that was previously agreed on March 25, 2021 as part of the Fifth Amendment to the Credit Agreement, into a $1.5 billion senior secured revolving Credit Facility with a syndicate of lenders led by Wells Fargo, National Association, as agent, swingline and fronting lender. The Credit Facility matures on November 23, 2026. The Company primarily uses the Credit Facility to fund working capital, general operations, dividends, acquisitions and other strategic activities. On April 3, 2023, the Company entered into a Seventh Amendment to the Credit Agreement which replaces the use of LIBOR with SOFR as of the date of the amendment, and, therefore, will affect the interest rates paid for a portion of the Credit Facility starting in the second quarter of 2023. The Company’s Credit Agreement includes a number of financial covenants and operating restrictions of which failure to comply could result in a default under the Credit Agreement. On February 26, 2024, the Company entered into an Eighth Amendment to the Credit Agreement to increase the net leverage ratio covenant, for a period starting with the quarter ending March 31, 2024 through quarter ending March 31, 2025, from the current 3.5 to 1 to between 4.0 to 1 and 4.5 to 1, as may be applicable in different quarters; and reduced the total lenders’ commitment from $1.5 billion to $1.3 billion. The Company's ability to comply with the covenants will depend on, among other things, financial, business, market, competitive and other conditions, many of which are beyond its control. As of the issuance of these financial statements, the Company believes it has sufficient cash on hand, positive working capital, and availability to access additional cash under the Credit Facility to meet its business operating requirements, its capital expenditures and to continue to comply with the amended debt covenants. In the event that the Company does not remain in compliance with the financial covenants under the Credit Facility, it may need to negotiate additional amendments to or waivers of the terms of such credit facilities, refinance its debt, or raise additional capital. The Company could also reduce discretionary spending which could include a reduction to capital expenditures or the dividends paid. The maximum commitment under the Credit Facility is $1.3 billion in the aggregate, if certain conditions are satisfied. The Credit Facility commitment fees are payable to the lenders in an amount equal to the unused portion of the Credit Facility multiplied by a rate per annum as determined by reference to the Company’s net leverage ratio. The Credit Agreement contains customary affirmative, negative, and financial covenants. The Credit Agreement permits accounts receivable factoring up to the greater of $100 million or 25 percent of the average book value of all accounts receivable over the most recent twelve-month period. The Credit Agreement also permits the utilization of up to $100 million of limits within the Credit Facility for letters of credit to be used in the business. As defined in the Credit Agreement, base rate loans bear interest at a rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 0.50%, or (c) SOFR in effect on such day plus 1.0%. Base rate loans shall be based on the base rate, plus the applicable credit margin which ranges from 0% to 1% based on the Company’s net leverage ratio. SOFR loans bear interest at a rate equal to the applicable spread adjusted SOFR plus applicable credit margin which ranges from 1% to 2% based on the Company’s net leverage ratio. Alternative currency loans (not denominated in U.S. Dollars) bear interest at rates applicable to their respective currencies. Letter of credit fees are one eighth of 1% of the stated amount of the letter of credit on the date of issuance, renewal or amendment, plus an annual fee equal to the borrowing margin for SOFR loans. As of December 31, 2023, and 2022, the Company had borrowings of $995.0 million and $960.0 million, respectively, under its Credit Agreement and its average daily utilization was $1,072.4 million and $1,037.4 million for the years ended December 31, 2023 and 2022, respectively. Based on the current level of availability based on the covenant calculations, the Company’s remaining borrowing capacity was approximately $90 million as of December 31, 2023. As of December 31, 2023, the Company was in compliance with all covenants and conditions under its Credit Agreement. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (13) COMMITMENTS AND CONTINGENCIES Letters of Credit As of December 31, 2023, outstanding letters of credit under the Credit Agreement totaled $0.2 million and primarily guaranteed workers’ compensation and other insurance related obligations. As of December 31, 2023, letters of credit and contract performance guarantees issued outside of the Credit Agreement totaled $0.3 million. Guarantees Indebtedness under the Credit Agreement is guaranteed by certain of the Company’s present and future domestic subsidiaries. Legal Proceedings From time to time, the Company has been involved in legal actions, both as plaintiff and defendant, which arise in the ordinary course of business. The Company accrues for exposures associated with such legal actions to the extent that losses are deemed both probable and reasonably estimable. To the extent specific reserves have not been made for certain legal proceedings, their ultimate outcome, and consequently, an estimate of possible loss, if any, cannot reasonably be determined at this time. Based on currently available information and advice received from counsel, the Company believes that the disposition or ultimate resolution of any current legal proceedings, except as otherwise specifically reserved for in its financial statements, will not have a material adverse effect on the Company’s financial position, cash flows or results of operations. |
DEFERRED REVENUE AND REMAINING
DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | (14) DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS Deferred revenue in the accompanying Consolidated Balance Sheets consist of the following (in thousands): December 31, 2023 2022 Deferred Revenue - Current $ 81,171 $ 87,846 Deferred Revenue - Long-term (included in Other long-term liabilities) 4,814 5,760 Total Deferred Revenue $ 85,985 $ 93,606 Deferred costs in the accompanying Consolidated Balance Sheets consist of the following (in thousands): December 31, 2023 2022 Deferred Costs - Current (included in Prepaids and other current assets) $ 32,672 $ 42,632 Deferred Costs - Long-term (included in Other long-term assets) 24,245 6,550 Total Deferred Costs $ 56,917 $ 49,182 Activity in the Company’s Deferred revenue accounts consists of the following (in thousands): Balance as of December 31, 2022 $ 93,606 Additions 332,021 Amortization (339,642) Balance as of December 31, 2023 $ 85,985 Revenue recognized for the year ended December 31, 2023 from amounts included in deferred revenue as of December 31, 2022 was $332.0 million. Revenue recognized for the year ended December 31, 2022 from amounts included in deferred revenue as of December 31, 2021 was $288.5 million. Remaining performance obligations (“RPO”) represent the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. The Company’s RPO excludes performance obligations from on-demand arrangements as there are no minimum purchase commitments associated with these arrangements, and certain time and materials contracts that are billed in arrears. As of December 31, 2023, the Company’s RPO was $332.4 million, which will be delivered and recognized within the next five year |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
LEASES [ABSTRACT] | |
Leases | (15) LEASES Operating leases are included in our Consolidated Balance Sheet as Operating lease assets, Current operating lease liabilities and Non-current operating lease liabilities. Finance leases are included in Property, plant and equipment, Other current liabilities and Other long-term liabilities in our Consolidated Balance Sheet. The Company primarily leases real estate and equipment under various arrangements that provide the Company the right-of-use for the underlying asset that require lease payments over the lease term. The Company determines the value of each lease by computing the present value of each lease payment using the interest rate implicit in the lease, if available; otherwise the Company estimates its incremental borrowing rate over the lease term. The Company determines its incremental borrowing rate based on its estimated credit risk with adjustments for each individual leases’ geographical risk and lease term. Operating lease assets also include prepaid rent and initial direct costs less any tenant improvements. The Company’s real estate portfolio typically includes one or more options to renew can extend the lease term one The components of lease expense for the years ended December 31, 2023 and 2022 are as follows (in thousands): Location in Statements of Year Ended December 31, Description Comprehensive Income (Loss) 2023 2022 2021 Amortization of ROU assets - finance leases Depreciation and amortization $ 2,832 $ 3,785 $ 6,674 Interest on lease liabilities - finance leases Interest expense 115 79 136 Operating lease cost (cost resulting from lease payments) Cost of services 36,872 34,786 39,087 Operating lease cost (cost resulting from lease payments) Selling, general and administrative 1,625 2,524 2,770 Operating lease cost (cost resulting from lease payments) Restructuring 788 925 1,614 Operating lease cost Impairment 10,096 4,821 5,338 Operating lease cost (cost resulting from lease payments) Other income (expense), net 1,352 1,298 1,240 Short-term lease cost Cost of services 1,182 3,428 4,529 Variable lease cost (cost excluded from lease payments Cost of services 827 1,320 1,246 Less: Sublease income Selling, general and administrative (555) (710) (807) Less: Sublease income Other income (expense), net (3,034) (2,748) (2,584) Total lease cost $ 52,100 $ 49,508 $ 59,243 Other supplementary information for the years ended December 31, 2023 and 2022 are as follows (dollar values in thousands): Year Ended December 31, 2023 2022 2021 Finance lease - operating cash flows $ 38 $ 26 $ 45 Finance lease - financing cash flows $ 2,527 $ 3,087 $ 6,385 Operating lease - operating cash flows (fixed payments) $ 49,691 $ 51,693 $ 52,358 New ROU assets - operating leases $ 28,024 $ 36,040 $ 15,280 Modified ROU assets - operating leases $ 44,129 $ 10,629 $ 736 New ROU assets - finance leases $ 3,124 $ 483 $ 1,141 December 31, 2023 December 31, 2022 December 31, 2021 Weighted average remaining lease term - finance leases 2.22 years 1.87 years 2.34 years Weighted average remaining lease term - operating leases 4.12 years 4.06 years 3.32 years Weighted average discount rate - finance leases 5.51% 2.07% 1.85% Weighted average discount rate - operating leases 6.88% 4.91% 5.38% Operating and financing lease right-of-use assets and lease liabilities within our Consolidated Balance Sheet as of December 31, 2023 and 2022 are as follows (in thousands): Description Location in Balance Sheet December 31, 2023 December 31, 2022 Assets Operating lease assets Operating lease assets $ 121,574 $ 92,431 Finance lease assets Property, plant and equipment, net 4,106 3,814 Total leased assets $ 125,680 $ 96,245 Liabilities Current Operating Current operating lease liabilities $ 38,271 $ 35,271 Finance Other current liabilities 2,100 2,056 Non-current Operating Non-current operating lease liabilities 96,809 69,575 Finance Other long-term liabilities 1,887 1,257 Total lease liabilities $ 139,067 $ 108,159 The future minimum operating lease and finance lease payments required under non-cancelable leases as of December 31, 2023 and 2022 are as follows (in thousands): December 31, 2023 Operating Sub-lease Finance Leases Income Leases Year 1 $ 46,258 $ (3,038) $ 2,155 Year 2 36,683 (3,015) 1,378 Year 3 30,984 (490) 704 Year 4 25,539 — — Year 5 11,794 — — Thereafter 6,267 — — Total minimum lease payments $ 157,525 $ (6,543) $ 4,237 Less imputed interest (22,445) (250) Total lease liability $ 135,080 $ 3,987 December 31, 2022 Operating Sub-lease Finance Leases Income Leases Year 1 $ 38,783 $ (3,527) $ 2,071 Year 2 26,789 (2,940) 1,020 Year 3 18,229 (2,940) 268 Year 4 12,906 (490) 14 Year 5 9,749 — — Thereafter 10,320 — — Total minimum lease payments $ 116,776 $ (9,897) $ 3,373 Less imputed interest (11,930) (60) Total lease liability $ 104,846 $ 3,313 In 2008, the Company sub-leased one of its customer engagement centers to a third party for the remaining term of the lease. The sub-lease began on January 1, 2009 and rental income is recognized on a straight-line basis over the term of the sub-lease through 2026 |
OTHER LONG TERM LIAB
OTHER LONG TERM LIAB | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Liabilities Disclosure [Text Block] | (16) OTHER LONG-TERM LIABILITIES The components of Other long-term liabilities as of December 31, 2023 and 2022 are as follows (in thousands): December 31, 2023 December 31, 2022 Deferred revenue $ 4,814 $ 5,760 Deferred compensation plan 30,999 25,889 Other 36,270 34,655 Total $ 72,083 $ 66,304 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | (17) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents changes in the accumulated balance for each component of Other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) (in thousands): Foreign Currency Derivative Translation Valuation, Net Other, Net Adjustment of Tax of Tax Totals Accumulated other comprehensive income (loss) at December 31, 2020 $ (78,139) $ 8,431 $ (2,448) $ (72,156) Other comprehensive income (loss) before reclassifications (17,408) (12,126) (103) (29,637) Amounts reclassified from accumulated other comprehensive income (loss) — 3,655 (288) 3,367 Net current period other comprehensive (income) loss (17,408) (8,471) (391) (26,270) Accumulated other comprehensive income (loss) at December 31, 2021 $ (95,547) $ (40) $ (2,839) $ (98,426) Accumulated other comprehensive income (loss) at December 31, 2021 $ (95,547) $ (40) $ (2,839) $ (98,426) Other comprehensive income (loss) before reclassifications (28,187) 2,281 455 (25,451) Amounts reclassified from accumulated other comprehensive income (loss) — (2,152) (272) (2,424) Net current period other comprehensive income (loss) (28,187) 129 183 (27,875) Accumulated other comprehensive income (loss) at December 31, 2022 $ (123,734) $ 89 $ (2,656) $ (126,301) Accumulated other comprehensive income (loss) at December 31, 2022 $ (123,734) $ 89 $ (2,656) $ (126,301) Other comprehensive income (loss) before reclassifications 30,891 3,292 (62) 34,121 Amounts reclassified from accumulated other comprehensive income (loss) (301) 2,934 (329) 2,304 Net current period other comprehensive income (loss) 30,590 6,226 (391) 36,425 Accumulated other comprehensive income (loss) at December 31, 2023 $ (93,144) $ 6,315 $ (3,047) $ (89,876) The following table presents the classification and amount of the reclassifications from Accumulated other comprehensive income (loss) to the Statement of Comprehensive Income (Loss) (in thousands): Statement of For the Year Ended December 31, Comprehensive Income 2023 2022 2021 (Loss) Classification Derivative valuation (Gain)/loss on foreign currency forward exchange contracts $ 3,964 $ (2,906) $ 4,939 Revenue Tax effect (1,030) 754 (1,284) Provision for income taxes $ 2,934 $ (2,152) $ 3,655 Net income (loss) Other Actuarial loss on defined benefit plan $ (366) $ (302) $ (320) Cost of services Tax effect 37 30 32 Provision for income taxes $ (329) $ (272) $ (288) Net income (loss) |
WEIGHTED AVERAGE SHARE COUNTS
WEIGHTED AVERAGE SHARE COUNTS | 12 Months Ended |
Dec. 31, 2023 | |
Weighted Average Share Counts | |
NET INCOME PER SHARE | (18) WEIGHTED AVERAGE SHARE COUNTS The following table sets forth the computation of basic and diluted shares for the periods indicated (in thousands): Year Ended December 31, 2023 2022 2021 Shares used in basic earnings per share calculation 47,335 47,121 46,890 Effect of dilutive securities: Restricted stock units 78 205 468 Performance-based restricted stock units 6 9 28 Total effects of dilutive securities 84 214 496 Shares used in dilutive earnings per share calculation 47,419 47,335 47,386 For the years ended December 31, 2023, 2022 and 2021, restricted stock units of 935 thousand, 462 thousand, and 124 thousand, respectively, were outstanding but not included in the computation of diluted net income per share because the effect would have been anti-dilutive. |
EMPLOYEE COMPENSATION PLANS
EMPLOYEE COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE COMPENSATION PLANS [Abstract] | |
EMPLOYEE COMPENSATION PLANS | (19) EMPLOYEE COMPENSATION PLANS Employee Benefit Plan The Company currently has a 401(k) profit-sharing plan that allows participation by U.S. employees who have completed six months of service, as defined, and are 21 years of age or older. Participants may defer up to 75% of their gross pay, up to a maximum limit determined by U.S. federal law. Participants are also eligible for a matching contribution. The Company may from time to time, at its discretion, make a “matching contribution” based on the amount and rate of the elective deferrals. The Company determines how much, if any, it will contribute for each dollar of elective deferrals. Participants vest in matching contributions over a three-year period. Company matching contributions to the 401(k) plan(s) totaled $11.6 million, $12.2 million and $10.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. Equity Compensation Plans In February 2020, the Company adopted the TTEC Holdings, Inc., 2020 Equity Incentive Plan (the “2020 Plan”), which permits awards of incentive stock options, non-qualified stock options, stock appreciation rights, shares of restricted common stock, performance stock units and restricted stock units. The 2020 Plan will also provide for annual equity-based compensation grants to members of the Company’s Board of Directors. Options granted to employees under the 2020 Plan generally vest over three The following table presents the total equity-based compensation expense (stock options and RSUs) for the years ended December 31, 2023, 2022 and 2021 (in thousands): Year Ended December 31, 2023 2022 2021 Equity-based compensation expense recognized in Cost of services $ 9,766 $ 7,175 $ 6,099 Equity-based compensation expense recognized in Selling, general and administrative 12,305 10,396 10,326 Total equity-based compensation expense $ 22,071 $ 17,571 $ 16,425 Total tax benefit recognized $ 2,329 $ 5,512 $ 8,673 Restricted Stock Units 2021, 2022 and 2023 RSU Awards: Summary of RSUs: The weighted average grant-date fair value of RSUs, including performance-based RSUs, granted during the years ended December 31, 2023, 2022, and 2021 was $33.34, $65.36, and $96.47, respectively. The total intrinsic value and fair value of RSUs vested during the years ended December 31, 2023, 2022, and 2021 was $17.7 million, $18.4 million, and $14.2 million, respectively. Performance Based Restricted Stock Unit Grants During 2019, the Company awarded performance restricted stock units (“PRSUs”) that were subject to service and performance vesting conditions. If defined minimum targets were met, the annual value of the PRSUs issued would be between $0.4 million and $1.4 million and vest immediately. If the defined minimum targets were not met, then no shares would be issued. The award amounts were based on the Company’s annual adjusted operating income for the fiscal years 2019, 2020 and 2021. Each fiscal year’s adjusted operating income determined the award amount. The Company recognized compensation expense related to the 2019 PRSUs of $1.1 million and $1.1 million for the years ended December 31, 2021 and 2020, respectively. During 2020, the Company awarded PRSUs that are subject to service and performance vesting conditions. If defined minimum targets are met, the annual value of the PRSUs issued will be between $0.2 million and $2.0 million and vest immediately. If the defined minimum targets are not met, then no shares will be issued. The number of shares awarded are based on the Company’s annual revenue and adjusted operating income for the fiscal years 2021 and 2022. Each fiscal year’s revenue and adjusted operating income will determine the award amount. The Company recognized compensation expense related to the 2020 PRSUs of $1.2 million and $1.6 million for the year ended December 31, 2022 and 2021, respectively. During 2021, the Company awarded PRSUs that are subject to service and performance vesting conditions. If defined minimum targets are met, the annual value of the PRSUs issued will be between $1.2 million and $4.9 million and vest immediately in 2024. If the defined minimum targets are not met, then no shares will be issued. The number of shares that will be awarded will be based on the Company's annual revenue and adjusted operating income for the fiscal year 2023. The Company recognized compensation expense related to the 2021 PRSUs of $0.7 million for the year ended December 31, 2023. During 2022, the Company made awards of two different PRSU programs that are subject to service and performance vesting conditions: ordinary course annual PRSUs and one-time stretch financial goals PRSUs. For the ordinary course annual PRSUs, if defined minimum targets are met, the annual value of the PRSUs issued will be between $0.9 million and $3.5 million and vest immediately in March 2025. If the defined minimum targets are not met, then no shares will be issued. The number of shares that will be awarded will be based on the Company’s annual revenue and adjusted EBITDA for the fiscal year 2024. For the one-time stretch financial goals PRSUs, if defined minimum targets at TTEC Engage and TTEC Digital business segments’ levels are met, the number of shares of PRSUs issued will be between 0.0 million shares and 0.5 million shares and will vest immediately in March 2026. If the defined minimum targets are not met, then no shares will be issued. The number of shares to be awarded will be based on the TTEC Engage and TTEC Digital business segments’ annual revenue and adjusted EBITDA for the fiscal year 2025. Expense for these awards will begin at the start of the requisite service periods, beginning January 1, 2024 and January 1, 2025, respectively. During 2023, the Company awarded PRSUs that are subject to service and performance vesting conditions. If defined minimum targets are met, the annual value of the PRSUs issued will be between zero and $8.9 million and vest immediately in March 2026. If the defined minimum targets are not met, then no shares will be issued. The number of shares that will be awarded will be based on the Company’s annual revenue and adjusted EBITDA for fiscal year 2023. Expense for these awards will begin at the start of the requisite service period, beginning January 1, 2025. A summary of the status of the Company’s non-vested RSUs and PRSUs and activity for the year ended December 31, 2023 is as follows: Weighted Average Grant Date Shares Fair Value Unvested as of December 31, 2022 1,358,723 $ 65.37 Granted 729,076 $ 33.34 Vested (273,558) $ 61.90 Cancellations/expirations (209,968) $ 63.78 Unvested as of December 31, 2023 1,604,273 $ 51.61 All RSUs vested during the year ended December 31, 2023 were issued out of treasury stock. As of December 31, 2023, there was approximately $36.6 million of total unrecognized compensation expense and approximately $34.8 million in total intrinsic value related to non-vested RSU grants. The unrecognized compensation expense will be recognized over the remaining weighted-average vesting period of 1.7 years using the straight-line method. |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 12 Months Ended |
Dec. 31, 2023 | |
STOCK REPURCHASE PROGRAM [ABSTRACT] | |
STOCK REPURCHASE PROGRAM | (20) STOCK REPURCHASE PROGRAM The Company has a stock repurchase program, which was initially authorized by the Company’s Board of Directors in November 2001, and is accounted for using the cash method. As of December 31, 2023, the cumulative authorized repurchase allowance was $762.3 million. During the year ended December 31, 2023, the Company purchased no additional shares. Since inception of the program, the Company has purchased 46.1 million shares for $735.8 million. As of December 31, 2023, the remaining allowance under the program was approximately $26.6 million. For the period from January 1, 2023 through February 23, 2024, the Company did not purchase any additional shares. Although the stock repurchase program does not have an expiration date, the Company would seek a re-authorization of repurchase from the Board of Directors, if it decides to make repurchases during 2024. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS [ABSTRACT] | |
RELATED PARTY TRANSACTIONS | (21) RELATED PARTY TRANSACTIONS The Company entered into an agreement under which Avion, LLC (“Avion”) and Airmax LLC (“Airmax”) provide certain aviation flight services as requested by the Company. Such services include the use of an aircraft and flight crew. Kenneth D. Tuchman, Chairman and Chief Executive Officer of the Company, has an indirect 100% beneficial ownership interest in Avion and Airmax. During 2023, 2022 and 2021, the Company expensed $1.0 million, $0.5 million and $0.6 million, respectively, to Avion and Airmax for services provided to the Company. There was $218 thousand in payments due and outstanding to Avion and Airmax as of December 31, 2023. Ms. Regina M. Paolillo, former Global Chief Operating Officer of the Company, was a member of the board of directors of Welltok, Inc., a consumer health SaaS company, and partner of the Company in the TTEC Welltok joint venture. During the years ended December 31, 2022 and 2021, the Company recorded revenue of $0.5 million and $1.5 million, respectively, in connection with work performed through the joint venture. As of December 2021, Ms. Paolillo is no longer a member of the board of directors and the joint venture has been wound down, but TTEC continues to service revenue for Welltok, Inc. Ms. Michelle Swanback, President of the Company, is a member of the board of directors of WTW (NYSE: WTW) (fka “Willis Towers Watson”), that provides compensation consulting and insurance brokerage services to the Company. During the years ended December 31, 2023 and 2022, the Company expensed $3.8 million and $2.9 million, respectively, for these services. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
Overview | Overview Founded in 1983 The Company operates and reports its financial results of operation through two business segments: • TTEC Digital is one of the largest CX technology providers and is focused exclusively on the intersection of Contact Center as a Service (CCaaS), Customer Relationship Management (CRM), and Artificial Intelligence (AI) and Analytics. A professional services organization comprised of software engineers, systems architects, data scientists and CX strategists, this segment creates and implements strategic CX transformation roadmaps; sells, operates, and provides managed services for cloud platforms and premise based CX technologies including Amazon Web Services, Cisco, Genesys, Google, and Microsoft; and creates proprietary IP to support industry specific and custom client needs. TTEC Digital serves clients across Enterprise and Small & Medium Sized business segments and has a dedicated unit with government technology certifications serving the public sector. • TTEC Engage provides the digitally enabled CX operational and managed services to support large, complex enterprise clients’ end-to-end customer interactions at scale. Tailored to meet industry specific and business needs, this segment delivers data-driven omnichannel customer care, customer acquisition, growth, and retention services, tech support, trust and safety and back-office solutions. The segment’s technology-enabled delivery model covers the entire associate lifecycle including recruitment, onboarding, training, delivery, workforce management and quality assurance. TTEC demonstrates its market leadership through strategic collaboration across TTEC Digital and TTEC Engage when there is client demand and fit for the Company’s integrated solutions. This partnership is central to the Company’s ability to deliver comprehensive and transformational customer experience solutions to its clients, including integrated delivery, go-to-market and innovation for truly differentiated, market leading CX solutions. During 2023, the combined TTEC Digital and TTEC Engage global operating platform delivered onshore, nearshore and offshore services in 22 countries on six continents – the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Egypt, Germany, Greece, Honduras, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Thailand, and the United Kingdom – with the help of over 60,000 customer care associates, consultants, technologists, and CX professionals. |
Basis Of Presentation | Basis of Presentation The Consolidated Financial Statements are comprised of the accounts of TTEC, its wholly owned subsidiaries, its 55% equity owned subsidiary Percepta, LLC, its 70% equity owned subsidiary First Call Resolution, LLC through March 31, 2023 and then 100% owned subsequently, and its 70% equity owned subsidiary Serendebyte, Inc. (see Note 2). All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, litigation reserves, restructuring reserves, allowance for credit losses, contingent consideration, redeemable noncontrolling interest, and valuation of goodwill, long-lived and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. |
Reclassifications [Text Block] | Out-of-period Adjustment The Consolidated Financial Statements for the year ended December 31, 2023 included an adjustment of $14.2 million to other comprehensive income and deferred tax assets, to correct for an error identified by management during the preparation of the financial statements. This adjustment was to reflect the deferred tax impact of currency translation adjustments, of which $14.2 million related to prior annual fiscal periods. Management has determined that this error was not material to the historical financial statements in any individual period or in the aggregate and did not result in the previously issued financial statements being materially misstated. As such, management recorded the correction as an out-of-period adjustment in the year ended December 31, 2023. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash, primarily held in interest-bearing investments, and liquid short-term investments, which have original maturities of less than 90 days. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations. The Company manages a centralized global treasury function in the United States with a focus on safeguarding and optimizing the use of its global cash and cash equivalents. The Company’s cash is held in the U.S. in U.S. dollars and outside of the U.S. in U.S. dollars and foreign currencies. The Company believes that it has effectively mitigated and managed its risk relating to its global cash through its cash management practices, banking partners, and utilization of diversified bank deposit accounts and high quality investments. However, the Company can provide no assurances that it will not sustain losses. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statement of Cash Flows (in thousands): December 31, 2023 December 31, 2022 December 31, 2021 Cash and cash equivalents $ 172,747 $ 153,435 $ 158,205 Restricted cash included in "Prepaid and other current assets" 1,158 13,629 22,477 Total $ 173,905 $ 167,064 $ 180,682 |
Concentration of Credit Risk | Concentration of Credit Risk The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate the possibility of current and future exposures resulting in a loss. The Company evaluates the creditworthiness of its clients prior to entering into an agreement to provide services and as necessary through the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative hedging activities, as the Company diversifies its activities across eight investment-grade financial institutions. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values of cash equivalents, accounts receivable, accounts payable and debt approximate the carrying amounts because of their short-term nature. |
Accounts Receivable | Accounts Receivable At the end of each quarter an allowance for credit losses will be calculated based on the current quarterly revenue multiplied by the historical loss percentage of the prior three-year period and recorded in the income statement. In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against this allowance when the Company determines a balance is uncollectible. |
Derivatives. | Derivatives The Company enters into foreign exchange forward and option contracts to reduce its exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. Upon proper qualification, these contracts are designated as cash flow hedges. The Company formally documents at the inception of the hedge all relationships between hedging instruments and hedged items as well as its risk management objective and strategy for undertaking various hedging activities. All derivative financial instruments are reported at fair value and recorded in Prepaids and other current assets, Other long-term assets, Other current liabilities, and Other long-term liabilities in the accompanying Consolidated Balance Sheets as applicable for each period end. Changes in fair value of derivative instruments designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss), a component of Stockholders’ Equity, to the extent they are deemed effective. Ineffectiveness is measured based on the change in fair value of the forward contracts and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. Based on the criteria established by current accounting standards, the Company’s cash flow hedge contracts are deemed to be highly effective. Any realized gains or losses resulting from the foreign currency cash flow hedges are recognized together with the hedged transaction within Revenue. Gains and losses from the settlements of the Company’s net investment hedges remain in Accumulated other comprehensive income (loss) until partial or complete liquidation of the applicable net investment. The Company also enters into fair value derivative contracts that hedge against foreign currency exchange gains and losses primarily associated with short-term payables and receivables. Changes in the fair value of derivative instruments designated as fair value hedges affect the carrying value of the asset or liability hedged, with changes in both the derivative instrument and the hedged asset or liability being recognized in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). |
Property, Plant and Equipment, Policy | Property, Plant and Equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and amortization. Maintenance, repairs and minor renewals are expensed as incurred. Depreciation and amortization are computed on the straight-line method based on the following estimated useful lives: Building 30 years Computer equipment and software 3 to 7 years Telephone equipment 4 to 7 years Furniture and fixtures 5 years Leasehold improvements Lesser of economic useful life (typically 10 years) or original lease term Other 3 to 7 years The Company evaluates the carrying value of property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An asset is considered to be impaired when the forecasted undiscounted cash flows of an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of forecasted future cash flows. |
Software Development Costs | Software Development Costs The Company capitalizes costs incurred to acquire or develop software for internal use. Capitalized software development costs are amortized using the straight-line method over the estimated useful life equal to the lesser of the license term or 4 or 7 years depending on the software type. The expense related to these assets has been classified as amortization expense within the income statement except for assets that are classified as cloud computing arrangements which will be expensed as operating expenses within the income statement. |
Goodwill Policy | Goodwill The Company evaluates goodwill for possible impairment at least annually on December 1, and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses a two-step process to assess the realizability of goodwill. The first step, Step 0, is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. For example, the Company analyzes changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a particular reporting unit. A qualitative assessment also includes analyzing the excess fair value of a reporting unit over its carrying value from impairment assessments performed in previous years. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. If a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not, or if a reporting unit’s fair value has historically been closer to its carrying value, the Company will proceed to Step 1 testing where the Company calculates the fair value of a reporting unit. If Step 1 indicates that the carrying value of a reporting unit is in excess of its fair value, the Company will record an impairment equal to the amount by which a reporting unit’s carrying value exceeds its fair value. |
Other Intangible Assets | Other Intangible Assets The Company has other intangible assets that include customer relationships (definite-lived), trade names (definite-lived) and non-compete agreements (definite-lived). Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from 1 to 12 years. The Company evaluates the carrying value of its definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. A definite-lived intangible asset is considered to be impaired when the forecasted undiscounted cash flows of its asset group are estimated to be less than its carrying value. The Company evaluates indefinite-lived intangible assets for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Similar to goodwill, the Company may first use a qualitative analysis to assess the realizability of its indefinite-lived intangible assets. The qualitative analysis will include a review of changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of an indefinite-lived intangible asset. If a quantitative analysis is completed, an indefinite-lived intangible asset (i.e. trade name) is evaluated for possible impairment by comparing the fair value of the asset with its carrying value. Fair value is estimated as the discounted value of future revenues arising from a trade name using a royalty rate that a market participant would pay for use of that trade name. An impairment charge is recorded if the intangible asset’s carrying value exceeds its estimated fair value. |
Restructuring Liabilities | Restructuring Liabilities The Company routinely assesses the profitability and utilization of its customer engagement centers and existing markets. In some cases, the Company has chosen to close under-performing customer engagement centers and complete reductions in workforce to enhance future profitability. Severance payments that occur from reductions in workforce are in accordance with the Company’s postemployment plans and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and reasonably estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, rather than upon commitment to a plan. |
Income Taxes. | Income Taxes Accounting for income taxes requires recognition of deferred tax assets and liabilities for the expected future income tax consequences of transactions that have been included in the Consolidated Financial Statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Gross deferred tax assets may then be reduced by a valuation allowance for amounts that do not satisfy the realization criteria established by current accounting standards. The Company accounts for uncertain tax positions using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit. The second step is to estimate and measure the tax benefit as the amount that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. The Company evaluates these uncertain tax positions on a quarterly basis. This evaluation is based on the consideration of several factors including changes in facts or circumstances, changes in applicable tax law, and settlement of issues under audit. The Company recognizes interest and penalties related to uncertain tax positions as a part of the Provision for income taxes in the accompanying Consolidated Statements of Comprehensive Income (Loss). During the fourth quarter of 2023, the Company released its indefinite reinvestment assertion. The Company has completed its analysis in regard to the full tax impact of these changes in its indefinite reinvestment reassertion and any related taxes have been recorded. The Company generally intends to limit distributions from non-U.S. subsidiaries to cash balances available in foreign jurisdictions. No additional income taxes have been provided for any remaining outside basis difference inherent in our foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. Determination of any unrecognized deferred tax liability related to the outside basis difference in investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which we operate. The Organization for Economic Co-operation and Development (OECD), supported by 140 of their member countries, have agreed to implement a minimum 15% tax rate on certain multinational enterprises and have released model guidance. This global minimum tax, known as the Pillar Two framework, will become effective across various countries starting in 2024, as each country works to enact legislation influenced by the OECD Pillar 2 rules. While the Company does not expect the adoption of the Pillar Two framework to have a material impact on its effective tax rate, the Company continues to evaluate additional guidance released by the OECD, along with the pending and adopted legislation in each of the countries in which we operate. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from contracts and programs when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Performance obligation is the unit of accounting for revenue recognition under the provisions of ASC Topic 606, “Revenue from Contracts with Customers” and all related amendments (“ASC 606”). A contract’s transaction price is allocated to each distinct performance obligation in recognizing revenue. The Business Process Outsourcing (“BPO”) inbound and outbound service fees are based on either a per minute, per hour, per FTE, per transaction or per call basis, which represents the majority of our contracts. These contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For example, services for the training of the Company’s agents (which are separately billable to the customer) are a separate promise in the BPO contracts, but they are not distinct from the primary service obligations to transfer services to the customers. The performance of the customer service by the agents is highly dependent on the initial, growth, and seasonal training services provided to the agents during the life of a program. The training itself is not considered to have value to the customer on a standalone basis, and therefore, training on a standalone basis cannot be considered a separate unit of accounting. The Company therefore defers revenue from certain training services that are rendered mainly upon commencement of a new client contract or program, including seasonal programs. Revenue is also deferred when there is significant growth training in an existing program. Accordingly, recognition of initial, growth, and seasonal training revenues and associated costs (consisting primarily of labor and related expenses) are deferred and amortized over the period of economic benefit. With the exception of training which is typically billed upfront and deferred, the remainder of revenue is invoiced on a monthly or quarterly basis as services are performed and does not create a contract asset or liability. In addition to revenue from BPO services, revenue also consists of fees from services for program launch, professional consulting, fully-hosted or managed technology and learning innovation services. The contracts containing these service offerings may contain multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. The Company forecasts its expected cost based on historical data, current prevailing wages, other direct and indirect costs incurred in recently completed contracts, market conditions, and other client specific cost considerations. For these services, the point at which the transfer of control occurs determines when revenue is recognized in a specific reporting period. Within the TTEC Digital segment, where there are product sales, the attribution of revenue is recognized when the transfer of control is completed and the products are delivered to the client’s location. Where services are rendered to a customer, the attribution is aligned with the progress of work and is recognized over time (i.e. based on measuring the progress toward complete satisfaction of a performance obligation using an output method or an input method). Where an output method is used, revenue is recognized on the basis of direct measurements of the value to the customer of the goods or services transferred relative to the remaining goods or services promised under the contract. The majority of the Company’s services are recognized over time using the input method in which revenue is recognized on the basis of efforts or inputs toward satisfying a performance obligation (for example, resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs to satisfy the performance obligation. The measures used provide faithful depiction of the transfer of goods or services to the customers. For example, revenue is recognized on certain consulting contracts based on labor hours expended as a measurement of progress where the consulting work involves input of consultants’ time. The progress is measured based on the hours expended over total number of estimated hours included in the contract multiplied by the total contract consideration. The contract consideration can be a fixed price or an hourly rate, and in either case, the use of labor hours expended as an input measure provides a faithful depiction of the transfer of services to the customers. Deferred revenues for these services represent amounts collected from, or invoiced to, customers in excess of revenues recognized. This results primarily from i) receipt of license fees that are deferred due to one or more of the revenue recognition criteria not being met, and ii) the billing of annual customer support agreements, annual managed service agreements, and billings for other professional services that have not yet been performed by the Company. The Company records amounts billed and received, but not earned, as deferred revenue. These amounts are recorded in either Deferred revenue or Other long-term liabilities, as applicable, in the accompanying Consolidated Balance Sheets based on the period over which the Company expects to render services. Costs directly associated with revenue deferred, consisting primarily of labor and related expenses, are also deferred and recognized in proportion to the expected future revenue from the contract. Variable consideration exists in contracts for certain client programs that provide for adjustments to monthly billings based upon whether the Company achieves, exceeds or fails certain performance criteria. Adjustments to monthly billings consist of contractual bonuses/penalties, holdbacks and other performance based conditions. Variable consideration is estimated at contract inception at its most likely value and updated at the end of each reporting period as additional performance data becomes available. Revenue related to such variable consideration is recognized only to the extent that a significant reversal of any incremental revenue is not considered probable. Contract modifications are routine in the performance of the customer contracts. Contracts are often modified to account for customer mandated changes in the contract specifications or requirements, including service level changes. In most instances, contract modifications relate to goods or services that are incremental and distinctly identifiable, and, therefore, are accounted for prospectively. Incremental Costs to Obtain a Contract Direct and incremental costs to obtain or fulfill a contract are capitalized, and the capitalized costs are amortized over the corresponding period of benefit, determined on a contract by contract basis. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a customer contract that it would not have incurred if the contract had not been obtained. Contract acquisition costs consist primarily of payment of commissions to sales personnel and are incurred when customer contracts are signed. The deferred sales commission amounts are amortized based on the expected period of economic benefit and are classified as current or non-current based on the timing of when they are expected to be recognized as an expense. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained. Sales commissions are paid for obtaining new clients only and are not paid for contract renewals or contract modifications. Capitalized costs of obtaining contracts are periodically reviewed for impairment. As of December 31, 2023 and 2022, the Company has a deferred asset of $8.5 million and $6.6 million, respectively, related to sales commissions. In certain cases, the Company negotiates an upfront payment to a customer in conjunction with the execution of a contract. Such upfront payments are critical to acquisition of new business and are often used as an incentive to negotiate favorable rates from the clients and are accounted for as upfront discounts for future services. Such payments are either made in cash at the time of execution of a contract or are netted against the Company’s service invoices. Payments to customers are capitalized as contract acquisition costs and are amortized in proportion to the expected future revenue from the contract, which in most cases results in straight-line amortization over the life of the contract. Such payments are considered a reduction of the selling prices of the Company’s products or services, and therefore, are accounted for as a reduction of revenue when amortized. Such capitalized contract acquisition costs are periodically reviewed for impairment taking into consideration ongoing future cash flows expected from the contract and estimated remaining useful life of the contract. Practical Expedients and Exemptions Some of the Company’s service contracts are short-term in nature with a contract term of one one |
Lease Expense | Lease Expense The Company has negotiated certain rent holidays, landlord/tenant incentives and escalations in the base price of lease payments over the initial term of its operating leases. The initial term could include the “build-out” period of leases, where no lease payments are typically due. The Company recognizes rent holidays and rent escalations on a straight-line basis to lease expense over the lease term. The landlord/tenant incentives are recorded as a reduction to the right of use asset and depreciated on a straight line basis over the remaining lease term once the assets are placed in service. |
Equity-Based Compensation Expense | Equity-Based Compensation Expense Equity-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award, which is typically the vesting term of the share-based payment award. The Company estimates the forfeiture rate annually based on its historical experience of forfeited awards. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated at the exchange rates in effect on the last day of the period and income and expenses are translated using the monthly average exchange rates in effect for the period in which the items occur. Foreign currency translation gains and losses are recorded in Accumulated other comprehensive income (loss) within Stockholders’ Equity. Foreign currency transaction gains and losses are included in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which now requires the acquirer to account for revenue contracts in accordance with Topic 606 as if it had acquired the contract, versus recording these assets and liabilities at fair value on acquisition date. The ASU is effective for interim and annual periods beginning on or after December 15, 2022 with early adoption permitted. The Company adopted the new guidance during the fourth quarter of 2021 which required application to all acquisitions completed during the adoption year. See further discussion in Note 2. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform” (Topic 848), which provides optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform due to the anticipated cessation of the London Interbank Offered Rate (“LIBOR”). The ASU is effective from March 12, 2020, may be applied prospectively and could impact the accounting for LIBOR provisions in the Company’s credit facility agreement. In addition, in January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform – Scope,” which clarified the scope of ASC 848 relating to contract modifications. The Company adopted the standard effective April 1, 2023 and the adoption of this guidance did not have a material impact on the Company’s financial position, results of operations or cash flows. Other Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures” related to disclosures regarding a public entity’s reportable segments and provides more detailed information about a reportable segment’s expenses. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with retrospective application required. The Company is assessing the effect on its annual consolidated financial statement disclosures; however, adoption will not impact the Company’s consolidated balance sheets or income statements. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” to enhance the transparency and decision usefulness of income tax disclosures. The ASU is effective for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company is assessing the effect on its annual consolidated financial statement disclosures; however, adoption will not impact the Company’s consolidated balance sheets or income statements. |
OVERVIEW AND BASIS OF PRESENT_2
OVERVIEW AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statement of Cash Flows (in thousands): December 31, 2023 December 31, 2022 December 31, 2021 Cash and cash equivalents $ 172,747 $ 153,435 $ 158,205 Restricted cash included in "Prepaid and other current assets" 1,158 13,629 22,477 Total $ 173,905 $ 167,064 $ 180,682 |
Schedule of property, plant and equipment useful lives | Depreciation and amortization are computed on the straight-line method based on the following estimated useful lives: Building 30 years Computer equipment and software 3 to 7 years Telephone equipment 4 to 7 years Furniture and fixtures 5 years Leasehold improvements Lesser of economic useful life (typically 10 years) or original lease term Other 3 to 7 years |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Faneuil | |
Schedule of Assets Acquired and Liabilities Assumed | The following summarizes the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ — Accounts receivable, net 704 Prepaid and other assets 8,420 Net fixed assets 5,622 Right of use lease assets 17,778 Other assets 2,572 Customer relationships 61,310 Goodwill 75,902 $ 172,308 Accrued employee compensation $ 202 Accrued expenses 2,763 Right of use lease liability - current 3,129 Right of use lease liability - non-current 14,092 Deferred income 811 Other liabilities 8,891 $ 29,888 Total purchase price $ 142,420 |
Avtex | |
Schedule of Assets Acquired and Liabilities Assumed | The following summarizes the estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ 18,638 Accounts receivable, net 22,214 Prepaid expenses 26,389 Current income tax receivables 93 Net fixed assets 3,162 Right of use lease assets 3,614 Other assets 480 Tradename 5,300 Intellectual property intangible 770 Customer relationships 128,200 Goodwill 378,882 $ 587,742 Accounts payable $ 20,580 Accrued employee compensation 4,325 Accrued expenses 250 Right of use lease liability - current 678 Deferred revenue 56,765 Accrued income taxes 332 Deferred tax liability 1,930 Right of use lease liability - noncurrent 2,936 $ 87,796 Total purchase price $ 499,946 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION [ABSTRACT] | |
Schedule of Segment Selected Financial Data | The following tables present certain financial data by segment (in thousands): Year Ended December 31, 2023 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 486,882 $ — $ 486,882 $ 27,232 $ 29,846 TTEC Engage 1,975,935 — 1,975,935 74,040 88,175 Total $ 2,462,817 $ — $ 2,462,817 $ 101,272 $ 118,021 Year Ended December 31, 2022 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 463,667 $ 3 $ 463,670 $ 32,321 $ 34,895 TTEC Engage 1,980,037 — 1,980,037 79,470 133,648 Total $ 2,443,704 $ 3 $ 2,443,707 $ 111,791 $ 168,543 Year Ended December 31, 2021 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 414,148 $ (44) $ 414,104 $ 30,468 $ 35,437 TTEC Engage 1,858,965 (7) 1,858,958 66,238 181,755 Total $ 2,273,113 $ (51) $ 2,273,062 $ 96,706 $ 217,192 For the Year Ended December 31, 2023 2022 2021 Capital Expenditures TTEC Digital $ 8,232 $ 9,155 $ 8,919 TTEC Engage 59,607 74,857 51,439 Total $ 67,839 $ 84,012 $ 60,358 December 31, 2023 2022 2021 Total Assets TTEC Digital $ 815,488 $ 811,258 $ 828,255 TTEC Engage 1,370,110 1,342,704 1,168,549 Total $ 2,185,598 $ 2,153,962 $ 1,996,804 |
Schedule of Revenue by Geographic Area | The following tables present certain financial data based upon the geographic location where the services are provided (in thousands): As of and for the Year Ended December 31, 2023 2022 2021 Revenue United States / Canada $ 1,710,716 $ 1,738,053 $ 1,570,791 Philippines / Asia Pacific / India 477,455 457,526 476,395 Europe / Middle East / Africa 142,665 131,575 110,909 Latin America 131,981 116,553 114,967 Total $ 2,462,817 $ 2,443,707 $ 2,273,062 Property, plant and equipment, gross United States / Canada $ 506,092 $ 631,459 $ 620,407 Philippines / Asia Pacific / India 170,403 162,857 173,075 Europe / Middle East / Africa 30,290 21,435 19,594 Latin America 45,731 41,892 47,540 Total $ 752,516 $ 857,643 $ 860,616 Other long-term assets United States / Canada $ 90,810 $ 56,372 $ 68,052 Philippines / Asia Pacific / India 7,752 8,826 6,622 Europe / Middle East / Africa 2,021 1,306 1,735 Latin America 990 1,230 864 Total $ 101,573 $ 67,734 $ 77,273 |
ACCOUNTS RECEIVABLE AND SIGNI_2
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable, net in the accompanying Consolidated Balance Sheets consists of the following (in thousands): December 31, 2023 2022 Accounts receivable $ 397,116 $ 421,161 Less: Allowance for credit losses (2,248) (3,524) Accounts receivable, net $ 394,868 $ 417,637 |
Schedule of Change in Allowance for Doubtful Accounts | Activity in the Company’s Allowance for credit losses consists of the following (in thousands): December 31, 2023 2022 2021 Balance, beginning of year $ 3,524 $ 5,409 $ 5,067 Provision for credit losses 2,009 9,391 (350) Uncollectible receivables written-off (3,641) (11,278) (281) Effect of foreign currency and other 356 2 (15) Acquisition — — 988 Balance, end of year $ 2,248 $ 3,524 $ 5,409 |
Schedule of Revenue from Significant Clients | Year Ended December 31, 2023 2022 2021 Automotive client 10 % 10 % 9 % Financial services client 8 % 7 % 12 % |
Schedule of Accounts Receivable Outstanding from Significant Clients | Accounts receivable from these clients was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Automotive client $ 35,514 $ 38,539 $ 36,466 Financial services client $ 11,656 $ 14,019 $ 15,483 |
Schedule Of Receivables Net Current [Table Text Block] | The balances related to the Factoring agreement are as follows (in thousands): December 31, 2023 2022 Total accounts receivable factored $ 99,994 $ 99,503 Total amounts collected from clients not yet remitted to Bank $ 1,158 $ 13,602 |
PROPERTY PLANT AND EQUIPMENT (T
PROPERTY PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY PLANT AND EQUIPMENT [ABSTRACT] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands): December 31, 2023 2022 Land and buildings $ 31,972 $ 32,070 Computer equipment and software 428,164 527,096 Telephone equipment 40,955 46,235 Furniture and fixtures 75,338 80,843 Leasehold improvements 175,964 171,141 Motor vehicles 123 258 Property, plant and equipment, gross 752,516 857,643 Less: Accumulated depreciation and amortization (561,513) (674,283) Property, plant and equipment, net $ 191,003 $ 183,360 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL [ABSTRACT] | |
Schedule of Goodwill Rollforward | Goodwill consisted of the following (in thousands): Effect of December 31, Acquisitions / Foreign December 31, 2022 Adjustments Impairments Currency 2023 TTEC Digital $ 502,806 $ (2,763) $ — $ 533 $ 500,576 TTEC Engage 305,039 2,763 — 610 308,412 Total $ 807,845 $ — $ — $ 1,143 $ 808,988 Effect of December 31, Acquisitions / Foreign December 31, 2021 Adjustments Impairments Currency 2022 TTEC Digital $ 505,222 $ — $ — $ (2,416) $ 502,806 TTEC Engage 234,259 75,896 — (5,116) 305,039 Total $ 739,481 $ 75,896 $ — $ (7,532) $ 807,845 |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OTHER INTANGIBLE ASSETS [Abstract] | |
Schedule of Intangible Assets (Excluding Goodwill) | Other intangible assets which are included in Other long-term assets in the accompanying Consolidated Balance Sheets consisted of the following (in thousands): Acquisitions Effect of December 31, and Foreign December 31, 2022 Amortization Impairments Adjustments Currency 2023 Customer relationships, gross $ 355,717 $ — $ — $ — $ (967) $ 354,750 Customer relationships - accumulated amortization (123,882) (33,768) — — 426 (157,224) Other intangible assets, gross 19,712 — — — 659 20,371 Other intangible assets - accumulated amortization (17,638) (1,810) — — (16) (19,464) Other intangible assets, net $ 233,909 $ (35,578) $ — $ — $ 102 $ 198,433 Acquisitions Effect of December 31, and Foreign December 31, 2021 Amortization Impairments Adjustments Currency 2022 Customer relationships, gross $ 299,948 $ — $ — $ 61,310 $ (5,541) $ 355,717 Customer relationships - accumulated amortization (93,582) (33,244) — — 2,944 (123,882) Other intangible assets, gross 19,731 — — — (19) 19,712 Other intangible assets - accumulated amortization (13,748) (3,899) — — 9 (17,638) Other intangible assets, net $ 212,349 $ (37,143) $ — $ 61,310 $ (2,607) $ 233,909 |
Future Amortization Expense of Finite Lived Intangible Assets | Expected future amortization of other intangible assets as of December 31, 2023 is as follows (in thousands): 2024 $ 33,042 2025 31,092 2026 31,033 2027 31,033 2028 30,261 Thereafter 41,972 Total $ 198,433 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVES [ABSTRACT] | |
Schedule of Cash Flow Hedges OCI Rollforward | Year Ended December 31, 2023 2022 2021 Aggregate unrealized net gain/(loss) at beginning of period $ 89 $ (40) $ 8,431 Add: Net gain/(loss) from change in fair value of cash flow hedges 3,292 2,281 (12,126) Less: Net (gain)/loss reclassified to earnings from effective hedges 2,934 (2,152) 3,655 Aggregate unrealized net gain/(loss) at end of period $ 6,315 $ 89 $ (40) |
Schedule of Notional Amounts of Outstanding Cash Flow Hedges | The Company’s foreign exchange cash flow hedging instruments as of December 31, 2023 and 2022 are summarized as follows (in thousands). All hedging instruments are forward contracts. Local Currency U.S. Dollar % Maturing Contracts Notional Notional in the next Maturing As of December 31, 2023 Amount Amount 12 months Through Canadian Dollar 2,250 $ 1,670 100.0 % September 2024 Philippine Peso 9,324,000 165,842 (1) 58.7 % December 2026 Mexican Peso 938,000 44,155 60.8 % December 2026 $ 211,667 Local Currency U.S. Dollar Notional Notional As of December 31, 2022 Amount Amount Canadian Dollar 12,000 $ 9,177 Philippine Peso 8,617,000 157,855 (1) Mexican Peso 1,024,500 44,690 $ 211,722 (1) Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on December 31, 2023 and December 31, 2022. |
Schedule of Derivatives Instruments on Balance Sheet | The Company’s derivatives as of December 31, 2023 and 2022 were as follows (in thousands): December 31, 2023 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 7,527 $ 327 Other long-term assets 2,415 — Other current liabilities (1,214) (120) Other long-term liabilities (197) — Total fair value of derivatives, net $ 8,531 $ 207 December 31, 2022 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 4,001 $ 281 Other long-term assets 3,019 — Other current liabilities (5,157) (76) Other long-term liabilities (1,748) — Total fair value of derivatives, net $ 115 $ 205 |
Schedule of cash flow hedge impact on Statement of Comprehensive Income | Year Ended December 31, 2023 2022 Designated as Hedging Designation: Instruments Derivative contract type: Foreign Exchange Derivative classification: Cash Flow Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax $ 2,934 $ (2,152) Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ 3,964 $ (2,906) |
Schedule of fair value derivative impact on Statement of Comprehensive Income | Year Ended December 31, 2023 2022 Designation: Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Derivative classification: Fair Value Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss): Other income (expense), net $ 1,882 $ 827 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of Fair Value Derivative Assets and Liabilities | The following is a summary of the Company’s fair value measurements for its net derivative assets (liabilities) as of December 31, 2023 and 2022 (in thousands): As of December 31, 2023 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 $ — $ 8,531 $ — $ 8,531 Fair value hedges — 207 — 207 Total net derivative asset (liability) $ — $ 8,738 $ — $ 8,738 As of December 31, 2022 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 $ — $ 115 $ — $ 115 Fair value hedges — 205 — 205 Total net derivative asset (liability) $ — $ 320 $ — $ 320 |
Schedule of Fair Value Assets and Liabilities | The following is a summary of the Company’s fair value measurements as of December 31, 2023 and 2022 (in thousands): As of December 31, 2023 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ 8,738 $ — Deferred compensation plan asset 31,082 — — Total assets $ 31,082 $ 8,738 $ — Liabilities Derivative instruments, net $ — $ — $ — Contingent consideration — — (1,496) Total liabilities $ — $ — $ (1,496) Redeemable noncontrolling interest $ — $ — $ — As of December 31, 2022 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ 320 $ — Deferred compensation plan asset 25,046 — — Contingent consideration — — 5,724 Total assets $ 25,046 $ 320 $ 5,724 Liabilities Derivative instruments, net $ — $ — $ — Contingent consideration — — (5,916) Total liabilities $ — $ — $ (5,916) Redeemable noncontrolling interest $ — $ — $ (55,645) |
Schedule of Business Acquisitions by Acquisition Contingent Consideration | A rollforward of the activity in the Company’s fair value of the contingent consideration payable is as follows (in thousands): Imputed December 31, Interest / December 31, 2022 Acquisitions Payments Adjustments 2023 Faneuil $ (5,916) $ — $ 7,400 $ (2,980) $ (1,496) Total $ (5,916) $ — $ 7,400 $ (2,980) $ (1,496) Imputed December 31, Interest / December 31, 2021 Acquisitions Payments Adjustments 2022 VF US $ (7,414) $ — $ 7,414 $ — $ — VF ASEAN (2,186) — 2,186 — — Faneuil — (8,816) — 2,900 (5,916) Total $ (9,600) $ (8,816) $ 9,600 $ 2,900 $ (5,916) |
Faneuil receivable [Member] | |
Schedule of Business Acquisitions by Acquisition Contingent Consideration | A rollforward of the activity in the Company’s fair value of the contingent consideration receivable is as follows (in thousands): Imputed December 31, Interest / December 31, 2022 Acquisitions Payments Adjustments 2023 Faneuil $ 5,724 $ — $ (1,343) $ (4,381) $ — Total $ 5,724 $ — $ (1,343) $ (4,381) $ — Imputed December 31, Interest / December 31, 2021 Acquisitions Payments Adjustments 2022 Faneuil $ — $ 10,370 $ — $ (4,646) $ 5,724 Total $ — $ 10,370 $ — $ (4,646) $ 5,724 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES [ABSTRACT] | |
Sources of Pre-Tax Accounting Income | The sources of pre-tax operating income are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Domestic $ (39,871) $ 52,887 $ 108,160 Foreign 80,595 91,561 99,724 Total $ 40,724 $ 144,448 $ 207,884 |
Components of Income Tax Expense (Benefit) | The components of the Company’s Provision for (benefit from) income taxes are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current provision for (benefit from) Federal $ 3,625 $ 10,816 $ 20,697 State 1,893 5,245 8,006 Foreign 24,470 22,055 20,161 Total current provision for (benefit from) 29,988 38,116 48,864 Deferred provision for (benefit from) Federal (14,357) (3,128) (7,017) State (848) (192) (402) Foreign 7,677 (7,681) 8,250 Total deferred provision for (benefit from) (7,528) (11,001) 831 Total provision for (benefit from) income taxes $ 22,460 $ 27,115 $ 49,695 |
Effective Income Tax Rate Reconciliation Table | The following reconciles the Company’s effective tax rate to the federal statutory rate (in thousands): Year Ended December 31, 2023 2022 2021 Income tax per U.S. federal statutory rate (21%, 21%, 21%) $ 8,552 $ 30,334 $ 43,655 State income taxes, net of federal deduction (1,355) 2,717 4,588 Change in valuation allowances 14,917 (3,278) 12,567 Foreign income taxes at different rates than the U.S. 208 1,202 (1,416) Taxes related to compensation 1,542 (66) (2,788) Liabilities for uncertain tax positions 1,759 (1,435) (790) Impacts of foreign branch operations (283) 2,315 (187) Non-taxable earnings of noncontrolling interest (1,508) (2,638) (3,085) Foreign dividend less foreign tax credits (1,294) (1,616) (1,142) State and Federal income tax credits and NOL's (4,611) (4,604) (4,531) Foreign earnings taxed currently in U.S. 2,409 2,978 1,930 Taxes related to prior year filings 675 (432) (1,192) Other 1,449 1,638 2,086 Income tax per effective tax rate $ 22,460 $ 27,115 $ 49,695 Effective tax rate percentage 55.2% 18.8% 23.9% |
Schedule of Deferred Tax Assets and Liabilities | The Company’s deferred income tax assets and liabilities are summarized as follows (in thousands): Year Ended December 31, 2023 2022 Deferred tax assets, gross Accrued compensation and employee benefits $ 12,687 $ 11,627 Allowance for credit losses, insurance and other accruals 7,855 4,109 Amortization of deferred lease liabilities 21,683 18,475 Net operating losses 22,241 18,312 Customer acquisition and deferred revenue accruals 15,991 18,749 Federal and state tax credits, net 3,456 3,247 Investments 7,626 1,149 Depreciation and amortization 19,570 7,896 Unremitted foreign earnings 13,412 — Interest expense 14,957 — Other 630 3,931 Total deferred tax assets, gross 140,108 87,495 Valuation allowances (39,902) (24,944) Total deferred tax assets, net 100,206 62,551 Deferred tax liabilities Intangible assets (41,447) (28,848) Operating lease assets (18,362) (15,594) Other (5,383) (3,254) Total deferred tax liabilities (65,192) (47,696) Net deferred tax assets $ 35,014 $ 14,855 |
Valuation Allowance Rollforward | Activity in the Company’s valuation allowance accounts consists of the following (in thousands): Year Ended December 31, 2023 2022 2021 Beginning balance $ 24,944 $ 29,620 $ 18,697 Additions of deferred income tax expense 18,410 2,248 14,660 Reductions of deferred income tax expense (3,452) (6,924) (3,737) Ending balance $ 39,902 $ 24,944 $ 29,620 |
Expiration of Net Operating Loss Carryforwards | As of December 31, 2023, after consideration of all tax loss carry back opportunities, the Company had tax affected tax loss carry forwards worldwide expiring as follows (in thousands): 2024 $ 10 2025 245 2026 971 2027 375 After 2027 9,621 No expiration 11,024 Total $ 22,246 |
Reserve for Uncertain Tax Positions Rollforward | The tabular reconciliation of the reserve for uncertain tax benefits on a gross basis without interest for the three years ended December 31, 2023 is presented below (in thousands): Balance as of December 31, 2020 $ 7,509 Additions for current year tax positions 220 Reductions in prior year tax positions (826) Balance as of December 31, 2021 6,903 Additions for current year tax positions 143 Reductions in prior year tax positions (479) Balance as of December 31, 2022 6,567 Additions for current year tax positions 212 Reductions in prior year tax positions (203) Balance as of December 31, 2023 $ 6,576 |
Jurisdictions Open to Income Tax Examination | Tax Jurisdiction Tax Year Ended United States 2017 - Present Australia 2019 - Present India 2017 - Present Canada 2019 - Present Mexico 2018 - Present Philippines 2019 - Present |
DEFERRED REVENUE AND COSTS (Tab
DEFERRED REVENUE AND COSTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DEFERRED REVENUE AND COSTS [ABSTRACT] | |
Schedule of deferred revenue and costs | Deferred revenue in the accompanying Consolidated Balance Sheets consist of the following (in thousands): December 31, 2023 2022 Deferred Revenue - Current $ 81,171 $ 87,846 Deferred Revenue - Long-term (included in Other long-term liabilities) 4,814 5,760 Total Deferred Revenue $ 85,985 $ 93,606 Deferred costs in the accompanying Consolidated Balance Sheets consist of the following (in thousands): December 31, 2023 2022 Deferred Costs - Current (included in Prepaids and other current assets) $ 32,672 $ 42,632 Deferred Costs - Long-term (included in Other long-term assets) 24,245 6,550 Total Deferred Costs $ 56,917 $ 49,182 Activity in the Company’s Deferred revenue accounts consists of the following (in thousands): Balance as of December 31, 2022 $ 93,606 Additions 332,021 Amortization (339,642) Balance as of December 31, 2023 $ 85,985 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lease, Cost [Abstract] | |
Lease, Cost Table | The components of lease expense for the years ended December 31, 2023 and 2022 are as follows (in thousands): Location in Statements of Year Ended December 31, Description Comprehensive Income (Loss) 2023 2022 2021 Amortization of ROU assets - finance leases Depreciation and amortization $ 2,832 $ 3,785 $ 6,674 Interest on lease liabilities - finance leases Interest expense 115 79 136 Operating lease cost (cost resulting from lease payments) Cost of services 36,872 34,786 39,087 Operating lease cost (cost resulting from lease payments) Selling, general and administrative 1,625 2,524 2,770 Operating lease cost (cost resulting from lease payments) Restructuring 788 925 1,614 Operating lease cost Impairment 10,096 4,821 5,338 Operating lease cost (cost resulting from lease payments) Other income (expense), net 1,352 1,298 1,240 Short-term lease cost Cost of services 1,182 3,428 4,529 Variable lease cost (cost excluded from lease payments Cost of services 827 1,320 1,246 Less: Sublease income Selling, general and administrative (555) (710) (807) Less: Sublease income Other income (expense), net (3,034) (2,748) (2,584) Total lease cost $ 52,100 $ 49,508 $ 59,243 |
Schedule of leases | Other supplementary information for the years ended December 31, 2023 and 2022 are as follows (dollar values in thousands): Year Ended December 31, 2023 2022 2021 Finance lease - operating cash flows $ 38 $ 26 $ 45 Finance lease - financing cash flows $ 2,527 $ 3,087 $ 6,385 Operating lease - operating cash flows (fixed payments) $ 49,691 $ 51,693 $ 52,358 New ROU assets - operating leases $ 28,024 $ 36,040 $ 15,280 Modified ROU assets - operating leases $ 44,129 $ 10,629 $ 736 New ROU assets - finance leases $ 3,124 $ 483 $ 1,141 December 31, 2023 December 31, 2022 December 31, 2021 Weighted average remaining lease term - finance leases 2.22 years 1.87 years 2.34 years Weighted average remaining lease term - operating leases 4.12 years 4.06 years 3.32 years Weighted average discount rate - finance leases 5.51% 2.07% 1.85% Weighted average discount rate - operating leases 6.88% 4.91% 5.38% |
Assets and liabilities lessee [Table Text Block] | Operating and financing lease right-of-use assets and lease liabilities within our Consolidated Balance Sheet as of December 31, 2023 and 2022 are as follows (in thousands): Description Location in Balance Sheet December 31, 2023 December 31, 2022 Assets Operating lease assets Operating lease assets $ 121,574 $ 92,431 Finance lease assets Property, plant and equipment, net 4,106 3,814 Total leased assets $ 125,680 $ 96,245 Liabilities Current Operating Current operating lease liabilities $ 38,271 $ 35,271 Finance Other current liabilities 2,100 2,056 Non-current Operating Non-current operating lease liabilities 96,809 69,575 Finance Other long-term liabilities 1,887 1,257 Total lease liabilities $ 139,067 $ 108,159 |
Schedule of future minimum operating lease payments | The future minimum operating lease and finance lease payments required under non-cancelable leases as of December 31, 2023 and 2022 are as follows (in thousands): December 31, 2023 Operating Sub-lease Finance Leases Income Leases Year 1 $ 46,258 $ (3,038) $ 2,155 Year 2 36,683 (3,015) 1,378 Year 3 30,984 (490) 704 Year 4 25,539 — — Year 5 11,794 — — Thereafter 6,267 — — Total minimum lease payments $ 157,525 $ (6,543) $ 4,237 Less imputed interest (22,445) (250) Total lease liability $ 135,080 $ 3,987 December 31, 2022 Operating Sub-lease Finance Leases Income Leases Year 1 $ 38,783 $ (3,527) $ 2,071 Year 2 26,789 (2,940) 1,020 Year 3 18,229 (2,940) 268 Year 4 12,906 (490) 14 Year 5 9,749 — — Thereafter 10,320 — — Total minimum lease payments $ 116,776 $ (9,897) $ 3,373 Less imputed interest (11,930) (60) Total lease liability $ 104,846 $ 3,313 |
Schedule of future minimum finance lease payments | December 31, 2023 Operating Sub-lease Finance Leases Income Leases Year 1 $ 46,258 $ (3,038) $ 2,155 Year 2 36,683 (3,015) 1,378 Year 3 30,984 (490) 704 Year 4 25,539 — — Year 5 11,794 — — Thereafter 6,267 — — Total minimum lease payments $ 157,525 $ (6,543) $ 4,237 Less imputed interest (22,445) (250) Total lease liability $ 135,080 $ 3,987 December 31, 2022 Operating Sub-lease Finance Leases Income Leases Year 1 $ 38,783 $ (3,527) $ 2,071 Year 2 26,789 (2,940) 1,020 Year 3 18,229 (2,940) 268 Year 4 12,906 (490) 14 Year 5 9,749 — — Thereafter 10,320 — — Total minimum lease payments $ 116,776 $ (9,897) $ 3,373 Less imputed interest (11,930) (60) Total lease liability $ 104,846 $ 3,313 |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Noncurrent Liabilities [Table Text Block] | The components of Other long-term liabilities as of December 31, 2023 and 2022 are as follows (in thousands): December 31, 2023 December 31, 2022 Deferred revenue $ 4,814 $ 5,760 Deferred compensation plan 30,999 25,889 Other 36,270 34,655 Total $ 72,083 $ 66,304 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | |
Schedule of accumulated other comprehensive income (loss) | The following table presents changes in the accumulated balance for each component of Other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) (in thousands): Foreign Currency Derivative Translation Valuation, Net Other, Net Adjustment of Tax of Tax Totals Accumulated other comprehensive income (loss) at December 31, 2020 $ (78,139) $ 8,431 $ (2,448) $ (72,156) Other comprehensive income (loss) before reclassifications (17,408) (12,126) (103) (29,637) Amounts reclassified from accumulated other comprehensive income (loss) — 3,655 (288) 3,367 Net current period other comprehensive (income) loss (17,408) (8,471) (391) (26,270) Accumulated other comprehensive income (loss) at December 31, 2021 $ (95,547) $ (40) $ (2,839) $ (98,426) Accumulated other comprehensive income (loss) at December 31, 2021 $ (95,547) $ (40) $ (2,839) $ (98,426) Other comprehensive income (loss) before reclassifications (28,187) 2,281 455 (25,451) Amounts reclassified from accumulated other comprehensive income (loss) — (2,152) (272) (2,424) Net current period other comprehensive income (loss) (28,187) 129 183 (27,875) Accumulated other comprehensive income (loss) at December 31, 2022 $ (123,734) $ 89 $ (2,656) $ (126,301) Accumulated other comprehensive income (loss) at December 31, 2022 $ (123,734) $ 89 $ (2,656) $ (126,301) Other comprehensive income (loss) before reclassifications 30,891 3,292 (62) 34,121 Amounts reclassified from accumulated other comprehensive income (loss) (301) 2,934 (329) 2,304 Net current period other comprehensive income (loss) 30,590 6,226 (391) 36,425 Accumulated other comprehensive income (loss) at December 31, 2023 $ (93,144) $ 6,315 $ (3,047) $ (89,876) |
Schedule of reclassifications from Accumulated other comprehensive income (loss) | The following table presents the classification and amount of the reclassifications from Accumulated other comprehensive income (loss) to the Statement of Comprehensive Income (Loss) (in thousands): Statement of For the Year Ended December 31, Comprehensive Income 2023 2022 2021 (Loss) Classification Derivative valuation (Gain)/loss on foreign currency forward exchange contracts $ 3,964 $ (2,906) $ 4,939 Revenue Tax effect (1,030) 754 (1,284) Provision for income taxes $ 2,934 $ (2,152) $ 3,655 Net income (loss) Other Actuarial loss on defined benefit plan $ (366) $ (302) $ (320) Cost of services Tax effect 37 30 32 Provision for income taxes $ (329) $ (272) $ (288) Net income (loss) |
WEIGHTED AVERAGE SHARE COUNTS (
WEIGHTED AVERAGE SHARE COUNTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Weighted Average Share Counts | |
Schedule of Diluted Shares Calculation | The following table sets forth the computation of basic and diluted shares for the periods indicated (in thousands): Year Ended December 31, 2023 2022 2021 Shares used in basic earnings per share calculation 47,335 47,121 46,890 Effect of dilutive securities: Restricted stock units 78 205 468 Performance-based restricted stock units 6 9 28 Total effects of dilutive securities 84 214 496 Shares used in dilutive earnings per share calculation 47,419 47,335 47,386 |
EMPLOYEE COMPENSATION PLANS (Ta
EMPLOYEE COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE COMPENSATION PLANS [Abstract] | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | The following table presents the total equity-based compensation expense (stock options and RSUs) for the years ended December 31, 2023, 2022 and 2021 (in thousands): Year Ended December 31, 2023 2022 2021 Equity-based compensation expense recognized in Cost of services $ 9,766 $ 7,175 $ 6,099 Equity-based compensation expense recognized in Selling, general and administrative 12,305 10,396 10,326 Total equity-based compensation expense $ 22,071 $ 17,571 $ 16,425 Total tax benefit recognized $ 2,329 $ 5,512 $ 8,673 |
Summary of non-vested RSU's and performance-based RSU's | Weighted Average Grant Date Shares Fair Value Unvested as of December 31, 2022 1,358,723 $ 65.37 Granted 729,076 $ 33.34 Vested (273,558) $ 61.90 Cancellations/expirations (209,968) $ 63.78 Unvested as of December 31, 2023 1,604,273 $ 51.61 |
OVERVIEW AND BASIS OF PRESENT_3
OVERVIEW AND BASIS OF PRESENTATION (TABLES) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 172,747 | $ 153,435 | $ 158,205 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 173,905 | 167,064 | 180,682 | $ 159,015 |
Prepaid Expenses and Other Current Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 1,158 | $ 13,629 | $ 22,477 |
OVERVIEW AND BASIS OF PRESENT_4
OVERVIEW AND BASIS OF PRESENTATION (Details) | Dec. 31, 2023 |
Building | |
Property Plant and Equipment Line Items | |
Useful life | 30 years |
Furniture And Fixtures | |
Property Plant and Equipment Line Items | |
Useful life | 5 years |
Leasehold Improvements | |
Property Plant and Equipment Line Items | |
Useful life | 10 years |
Minimum | Computer Equipment and software | |
Property Plant and Equipment Line Items | |
Useful life | 3 years |
Minimum | Telephone Equipment | |
Property Plant and Equipment Line Items | |
Useful life | 4 years |
Minimum | Other | |
Property Plant and Equipment Line Items | |
Useful life | 3 years |
Minimum | Software and Software Development Costs [Member] | |
Property Plant and Equipment Line Items | |
Useful life | 4 years |
Minimum | Other Intangible Assets [Member] | |
Property Plant and Equipment Line Items | |
Useful life | 1 year |
Maximum | Computer Equipment and software | |
Property Plant and Equipment Line Items | |
Useful life | 7 years |
Maximum | Telephone Equipment | |
Property Plant and Equipment Line Items | |
Useful life | 7 years |
Maximum | Other | |
Property Plant and Equipment Line Items | |
Useful life | 7 years |
Maximum | Software and Software Development Costs [Member] | |
Property Plant and Equipment Line Items | |
Useful life | 7 years |
Maximum | Other Intangible Assets [Member] | |
Property Plant and Equipment Line Items | |
Useful life | 12 years |
OVERVIEW AND BASIS OF PRESENT_5
OVERVIEW AND BASIS OF PRESENTATION (NARRATIVE) (Details) | 12 Months Ended | ||||||
Dec. 31, 2024 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 | Mar. 31, 2023 | Feb. 07, 2020 | Oct. 26, 2019 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Year Founded | 1983 | ||||||
Number Of Clients | 750 | ||||||
Number of Countries in which Entity Operates | 22 | ||||||
Number of employees | 60,000 | ||||||
Deferred sales commission | $ 8,500,000 | $ 6,600,000 | |||||
Effective income tax rate | 21% | 21% | 21% | ||||
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false] | true | ||||||
Revenue, Practical Expedient, Financing Component [true false] | true | ||||||
Prior Period Reclassification Adjustment | $ 14,200,000 | ||||||
Organization for Economic Co-operation Development OECD [Member] | Minimum | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Effective income tax rate | 15% | ||||||
Other Noncurrent Assets [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Prior Period Reclassification Adjustment | $ 14,200,000 | ||||||
Percepta LLC | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
ownership percentage | 55% | ||||||
FCR | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
ownership percentage | 100% | 70% | 70% | ||||
Serendebyte | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
ownership percentage | 70% | 70% |
ACQUISITIONS ASSETS ACQUIRED (T
ACQUISITIONS ASSETS ACQUIRED (TABLES) (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Apr. 08, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||||
Operating lease assets | $ 121,574 | $ 92,431 | |||
Deferred tax assets. | 100,206 | 62,551 | |||
Goodwill | 808,988 | 807,845 | $ 739,481 | ||
Operating lease liability - short-term | 38,271 | 35,271 | |||
Accrued employee compensation and benefits | 146,184 | 145,096 | |||
Operating lease liability - long-term | $ 96,809 | $ 69,575 | |||
Faneuil | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable. | $ 704 | ||||
Prepaid Expenses | 8,420 | ||||
Other assets | 2,572 | ||||
Operating lease assets | 17,778 | ||||
Fixed Assets Acquired | 5,622 | ||||
Goodwill | 75,902 | ||||
Total assets acquired | 172,308 | ||||
Operating lease liability - short-term | 3,129 | ||||
Accrued employee compensation and benefits | 202 | ||||
Accrued expenses | 2,763 | ||||
Operating lease liability - long-term | 14,092 | ||||
Deferred revenue. | 811 | ||||
Other | 8,891 | ||||
Total liabilities assumed | 29,888 | ||||
Total purchase price | 142,420 | ||||
Faneuil | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 61,310 | ||||
Avtex | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 18,638 | ||||
Accounts receivable. | 22,214 | ||||
Prepaid Expenses | 26,389 | ||||
Other assets | 480 | ||||
Operating lease assets | 3,614 | ||||
Income Taxes Receivable | 93 | ||||
Fixed Assets Acquired | 3,162 | ||||
Goodwill | 378,882 | ||||
Total assets acquired | 587,742 | ||||
Accounts payable | 20,580 | ||||
Operating lease liability - short-term | 678 | ||||
Accrued employee compensation and benefits | 4,325 | ||||
Accrued income taxes | 332 | ||||
Accrued expenses | 250 | ||||
Operating lease liability - long-term | 2,936 | ||||
Deferred tax liabilities | 1,930 | ||||
Deferred revenue. | 56,765 | ||||
Total liabilities assumed | 87,796 | ||||
Total purchase price | 499,946 | ||||
Avtex | Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 5,300 | ||||
Avtex | Intellectual Property [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 770 | ||||
Avtex | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 128,200 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES (NARRATIVE) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Apr. 01, 2022 USD ($) | Apr. 08, 2021 USD ($) | Oct. 26, 2019 | May 31, 2023 USD ($) | Apr. 30, 2023 USD ($) | Feb. 28, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 08, 2023 USD ($) | Apr. 04, 2023 USD ($) | Dec. 31, 2020 USD ($) | Feb. 07, 2020 | |
Business Acquisition [Line Items] | ||||||||||||||||||||
Entity Number of Employees | 60,000 | 60,000 | ||||||||||||||||||
Other liabilities, noncurrent | $ 72,083,000 | $ 66,304,000 | $ 72,083,000 | $ 66,304,000 | ||||||||||||||||
Redeemable noncontrolling interest | 0 | 55,645,000 | $ 56,316,000 | 0 | 55,645,000 | $ 56,316,000 | $ 52,976,000 | |||||||||||||
Contingent Consideration, at fair value | $ 1,496,000 | 5,916,000 | 9,600,000 | 1,496,000 | 5,916,000 | 9,600,000 | ||||||||||||||
Payments Made To Contingent Consideration Receivable During Period | (1,343,000) | 0 | ||||||||||||||||||
Contingent Consideration Receivable Imputed Interest Benefit and Other Adjustments | (4,381,000) | (4,646,000) | ||||||||||||||||||
Business Combination, Contingent Consideration, Asset | 5,724,000 | 0 | 5,724,000 | 0 | ||||||||||||||||
Temporary noncontrolling interest adjustment due to buyout | 24,067,000 | |||||||||||||||||||
Payments of contingent consideration and hold back payments to acquisitions | 37,676,000 | 9,600,000 | 11,517,000 | |||||||||||||||||
Revenue of Acquirees since Acquisition Date, Actual | 422,800,000 | 355,900,000 | ||||||||||||||||||
Income (loss) from operations of Acquirees since Acquisition Date, Actual | 81,300,000 | 22,200,000 | ||||||||||||||||||
Sales Revenue Services Net | 2,462,817,000 | 2,443,707,000 | 2,273,062,000 | |||||||||||||||||
Net Income (Loss) | 8,428,000 | 103,240,000 | 140,970,000 | |||||||||||||||||
Business Acquisition, Pro Forma Revenue | 2,485,700,000 | 2,447,300,000 | ||||||||||||||||||
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | 106,600,000 | 156,300,000 | ||||||||||||||||||
(Gain) Loss on dissolution of subsidiary | (301,000) | 0 | 0 | |||||||||||||||||
TTEC Digital | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Sales Revenue Services Net | 486,882,000 | 463,670,000 | 414,104,000 | |||||||||||||||||
TTEC Engage | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Sales Revenue Services Net | $ 1,975,935,000 | 1,980,037,000 | 1,858,958,000 | |||||||||||||||||
Accounting Standards Update 2021-08 [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Increase (Decrease) in Deferred Revenue | (4,900,000) | |||||||||||||||||||
Serendebyte | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
ownership percentage | 70% | 70% | 70% | |||||||||||||||||
FCR | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
ownership percentage | 100% | 70% | 70% | 70% | 100% | |||||||||||||||
Avtex | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
ownership percentage | 100% | |||||||||||||||||||
Serendebyte | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Total purchase price | $ 300,000 | |||||||||||||||||||
Serendebyte | Serendebyte | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Percentage of Voting Interests Acquired | 30% | |||||||||||||||||||
FCR | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Date of Acquisition | Oct. 26, 2019 | |||||||||||||||||||
Total purchase price | $ 22,400,000 | $ 22,400,000 | $ 22,400,000 | |||||||||||||||||
Temporary noncontrolling interest adjustment due to buyout | $ 20,500,000 | |||||||||||||||||||
Payments of contingent consideration and hold back payments to acquisitions | $ 22,400,000 | $ 9,200,000 | ||||||||||||||||||
FCR | FCR | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Percentage of Voting Interests Acquired | 30% | |||||||||||||||||||
Faneuil | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Date of Acquisition | Apr. 01, 2022 | |||||||||||||||||||
Fair Value of Assets Acquired | $ 0 | $ 78,000 | ||||||||||||||||||
Increase Decrease In Fair Value Assets Acquired | $ 140,000 | (52,000) | ||||||||||||||||||
Payments to Acquire Businesses | $ 142,400,000 | |||||||||||||||||||
Total purchase price | 142,420,000 | |||||||||||||||||||
Contingent Consideration, at fair value | $ 1,496,000 | $ 8,800,000 | 5,916,000 | 0 | $ 1,496,000 | 5,916,000 | 0 | |||||||||||||
Number Of Contingent Payments | 2 | |||||||||||||||||||
Payments Made To Contingent Consideration Receivable During Period | $ 7,400,000 | |||||||||||||||||||
Increase (decrease) in contingent consideration payable | $ (3,000,000) | 2,900,000 | ||||||||||||||||||
Faneuil | Minimum | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 7,400,000 | |||||||||||||||||||
Faneuil | Maximum | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 10,400,000 | |||||||||||||||||||
Faneuil | Risk Free Interest Rate | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business combination contingent consideration measurement input | 1.7 | |||||||||||||||||||
Faneuil | Expected forecast volatility rate [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business combination contingent consideration measurement input | 20 | |||||||||||||||||||
Faneuil | Discount Rate | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business combination contingent consideration measurement input | 19.3 | 19.3 | ||||||||||||||||||
Faneuil | Measurement Input, EBITDA Multiple [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business combination contingent consideration measurement input | 19.3 | |||||||||||||||||||
Faneuil | Measurement Input, Revenue Multiple [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business combination contingent consideration measurement input | 7.6 | |||||||||||||||||||
Faneuil | Other Operating Income (Expense) [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Increase (decrease) in contingent consideration payable | $ (3,000,000) | |||||||||||||||||||
Faneuil | Other Current Assets [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business Combination, Acquired Receivable, Fair Value | $ 10,400,000 | |||||||||||||||||||
Faneuil | Other Noncurrent Assets [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Fair Value of Assets Acquired | $ 270,000 | |||||||||||||||||||
Faneuil | Other Noncurrent Liabilities [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent Consideration, at fair value | $ 1,500,000 | 1,500,000 | ||||||||||||||||||
Faneuil | TTEC Engage | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Description of Acquired Entity | On April 1, 2022, the Company completed an asset acquisition through its subsidiary TTEC Government Solutions LLC, of certain public sector citizen experience contracts in the transportation infrastructure and healthcare exchange industries from Faneuil, Inc., a subsidiary of ALJ Regional Holdings, Inc., (“the Faneuil Transaction”). The acquired business is operated as part of the TTEC Engage segment and was fully consolidated into the financial statements of TTEC. The Faneuil Transaction was recorded as a business combination under ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date. | |||||||||||||||||||
Faneuil | Customer Relationships [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Useful life | 10 years | |||||||||||||||||||
Faneuil receivable [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments Made To Contingent Consideration Receivable During Period | (1,343,000) | 0 | ||||||||||||||||||
Contingent Consideration Receivable Imputed Interest Benefit and Other Adjustments | (4,381,000) | (4,646,000) | ||||||||||||||||||
Business Combination, Contingent Consideration, Asset | $ 0 | $ 5,724,000 | 0 | $ 5,724,000 | $ 0 | |||||||||||||||
Faneuil receivable [Member] | Other Operating Income (Expense) [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent Consideration Receivable Imputed Interest Benefit and Other Adjustments | $ (4,400,000) | |||||||||||||||||||
Avtex | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Date of Acquisition | Apr. 08, 2021 | |||||||||||||||||||
Description of Acquired Entity | Avtex is an end-to-end customer experience and CXaaS solutions provider with offerings in Genesys and Microsoft cloud solutions | |||||||||||||||||||
Payments to Acquire Businesses | $ 499,946,000 | |||||||||||||||||||
Base purchase price to acquire businesses | 490,000,000 | |||||||||||||||||||
Total purchase price | $ 499,946,000 | |||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | $ 100,000 | |||||||||||||||||||
Avtex | Accounting Standards Update 2021-08 [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Sales Revenue Services Net | $ 3,400,000 | |||||||||||||||||||
Avtex | Customer Relationships [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Useful life | 9 years | |||||||||||||||||||
Avtex | Trade Names [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Useful life | 1 year | |||||||||||||||||||
Avtex | Intellectual Property [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Useful life | 3 years |
SEGMENT INFORMATION (SEGMENT FI
SEGMENT INFORMATION (SEGMENT FINANCIALS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net Revenue | $ 2,462,817 | $ 2,443,707 | $ 2,273,062 |
Depreciation and amortization | 101,272 | 111,791 | 96,706 |
Income (Loss) from Operations | 118,021 | 168,543 | 217,192 |
Capital expenditures | 67,839 | 84,012 | 60,358 |
Total Assets | 2,185,598 | 2,153,962 | 1,996,804 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 2,462,817 | 2,443,704 | 2,273,113 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 0 | 3 | (51) |
TTEC Digital | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 486,882 | 463,670 | 414,104 |
Depreciation and amortization | 27,232 | 32,321 | 30,468 |
Income (Loss) from Operations | 29,846 | 34,895 | 35,437 |
Capital expenditures | 8,232 | 9,155 | 8,919 |
Total Assets | 815,488 | 811,258 | 828,255 |
TTEC Digital | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 486,882 | 463,667 | 414,148 |
TTEC Digital | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 0 | 3 | (44) |
TTEC Engage | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 1,975,935 | 1,980,037 | 1,858,958 |
Depreciation and amortization | 74,040 | 79,470 | 66,238 |
Income (Loss) from Operations | 88,175 | 133,648 | 181,755 |
Capital expenditures | 59,607 | 74,857 | 51,439 |
Total Assets | 1,370,110 | 1,342,704 | 1,168,549 |
TTEC Engage | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | 1,975,935 | 1,980,037 | 1,858,965 |
TTEC Engage | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net Revenue | $ 0 | $ 0 | $ (7) |
SEGMENT INFORMATION (REVENUE GE
SEGMENT INFORMATION (REVENUE GEOGRAPHY) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | $ 2,462,817 | $ 2,443,707 | $ 2,273,062 |
Property, plant and equipment, gross | 752,516 | 857,643 | 860,616 |
Other long-term assets | 101,573 | 67,734 | 77,273 |
United States Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | 1,710,716 | 1,738,053 | 1,570,791 |
Property, plant and equipment, gross | 506,092 | 631,459 | 620,407 |
Other long-term assets | 90,810 | 56,372 | 68,052 |
Philippines Asia Pacific India [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | 477,455 | 457,526 | 476,395 |
Property, plant and equipment, gross | 170,403 | 162,857 | 173,075 |
Other long-term assets | 7,752 | 8,826 | 6,622 |
Europe Middle East Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | 142,665 | 131,575 | 110,909 |
Property, plant and equipment, gross | 30,290 | 21,435 | 19,594 |
Other long-term assets | 2,021 | 1,306 | 1,735 |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales Revenue Services Net | 131,981 | 116,553 | 114,967 |
Property, plant and equipment, gross | 45,731 | 41,892 | 47,540 |
Other long-term assets | $ 990 | $ 1,230 | $ 864 |
ACCOUNTS RECEIVABLE (SCHEDULE O
ACCOUNTS RECEIVABLE (SCHEDULE OF ACCOUNTS RECEIVABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | ||||
Accounts receivable | $ 397,116 | $ 421,161 | ||
Less: Allowance for credit losses | (2,248) | (3,524) | $ (5,409) | $ (5,067) |
Accounts Receivable, Net, Current, Total | $ 394,868 | $ 417,637 |
ACCOUNTS RECEIVABLE (SCHEDULE_2
ACCOUNTS RECEIVABLE (SCHEDULE OF CHANGE IN ALLOWANCE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | |||
Balance, beginning balance | $ 3,524 | $ 5,409 | $ 5,067 |
Provision for credit losses | 2,009 | 9,391 | (350) |
Uncollectible receivables written-off | (3,641) | (11,278) | (281) |
Effect of foreign currency | 356 | 2 | (15) |
Acquisition credit losses | 0 | 0 | 988 |
Balance, ending balance | $ 2,248 | $ 3,524 | $ 5,409 |
ACCOUNTS RECEIVABLE (SIGNIFICAN
ACCOUNTS RECEIVABLE (SIGNIFICANT CLIENTS TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk, Percentage of Revenue from Major Customer | |||
Accounts receivable, net | $ 394,868 | $ 417,637 | |
Revenue | Customer Concentration Risk | Financial Services Client | |||
Concentration Risk, Percentage of Revenue from Major Customer | |||
Concentration risk percentage | 8% | 7% | 12% |
Revenue | Customer Concentration Risk | Automotive Industry Client | |||
Concentration Risk, Percentage of Revenue from Major Customer | |||
Concentration risk percentage | 10% | 10% | 9% |
Accounts Receivable | Credit Concentration Risk | Financial Services Client | |||
Concentration Risk, Percentage of Revenue from Major Customer | |||
Accounts receivable, net | $ 11,656 | $ 14,019 | $ 15,483 |
Accounts Receivable | Credit Concentration Risk | Automotive Industry Client | |||
Concentration Risk, Percentage of Revenue from Major Customer | |||
Accounts receivable, net | $ 35,514 | $ 38,539 | $ 36,466 |
ACCOUNTS RECEIVABLE (FACTORED T
ACCOUNTS RECEIVABLE (FACTORED TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS [Abstract] | ||
Factored Accounts Receivable, net | $ 99,994 | $ 99,503 |
Cash from customers not yet remitted | $ 1,158 | $ 13,602 |
ACCOUNTS RECEIVABLE AND SIGNI_3
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS(NARRATIVE) (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Entity Wide Revenue Major Customer Line Items | ||||
Revenue. | $ 2,462,817 | $ 2,443,707 | $ 2,273,062 | |
Customer Concentration Risk | Minimum | ||||
Entity Wide Revenue Major Customer Line Items | ||||
Revenue. | $ 100,000 | |||
Revenue | Customer Concentration Risk | ||||
Entity Wide Revenue Major Customer Line Items | ||||
Concentration Risk, Customer | one | |||
Revenue | Customer Concentration Risk | Financial Services Client | ||||
Entity Wide Revenue Major Customer Line Items | ||||
Concentration risk percentage | 8% | 7% | 12% | |
Revenue | Customer Concentration Risk | Automotive Industry Client | ||||
Entity Wide Revenue Major Customer Line Items | ||||
Concentration risk percentage | 10% | 10% | 9% |
Receivables Sales Agreement - A
Receivables Sales Agreement - Additional Information (Narrative) (Detail) $ in Millions | Dec. 31, 2023 USD ($) |
Maximum | |
Receivables Sales Agreement [Line Items] | |
Receivables Held-for-sale, Amount | $ 100 |
PROPERTY PLANT AND EQUIPMENT (P
PROPERTY PLANT AND EQUIPMENT (PPE BREAKOUT BY TYPE TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | $ 752,516 | $ 857,643 | $ 860,616 |
Less: Accumulated depreciation and amortization | (561,513) | (674,283) | |
Property, Plant and Equipment, Net, Total | 191,003 | 183,360 | |
Land And Building [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 31,972 | 32,070 | |
Technology Equipment [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 428,164 | 527,096 | |
Equipment [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 40,955 | 46,235 | |
Furniture And Fixtures | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 75,338 | 80,843 | |
Leasehold Improvements | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 175,964 | 171,141 | |
Vehicles [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | $ 123 | $ 258 |
PROPERTY PLANT AND EQUIPMENT (N
PROPERTY PLANT AND EQUIPMENT (NARRATIVE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation and amortization expense for property, plant and equipment | $ 64,200 | $ 64,500 | $ 63,500 |
Impairment losses | 11,733 | 13,749 | 11,254 |
Property, plant and equipment, net | 191,003 | 183,360 | |
Software Development [Member] | |||
Impairment losses | 100 | 6,000 | $ 3,200 |
Property, plant and equipment, net | $ 48,400 | $ 26,800 |
GOODWILL (GOODWILL ROLLFORWARD)
GOODWILL (GOODWILL ROLLFORWARD) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | ||
Beginning balance, goodwill | $ 807,845 | $ 739,481 |
Acquisitions / Adjustments Increase (Decrease) | 0 | 75,896 |
Effect of Foreign Currency | 1,143 | (7,532) |
Ending balance, goodwill | 808,988 | 807,845 |
TTEC Digital | ||
Goodwill [Line Items] | ||
Beginning balance, goodwill | 502,806 | 505,222 |
Acquisitions / Adjustments Increase (Decrease) | (2,763) | 0 |
Effect of Foreign Currency | 533 | (2,416) |
Ending balance, goodwill | 500,576 | 502,806 |
TTEC Engage | ||
Goodwill [Line Items] | ||
Beginning balance, goodwill | 305,039 | 234,259 |
Acquisitions / Adjustments Increase (Decrease) | 2,763 | 75,896 |
Effect of Foreign Currency | 610 | (5,116) |
Ending balance, goodwill | $ 308,412 | $ 305,039 |
GOODWILL (NARRATIVE) (Details)
GOODWILL (NARRATIVE) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill | $ 808,988 | $ 807,845 | $ 739,481 | |
Revenue Projections [Member] | Minimum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Impaired, Method for Fair Value Determination | (4.0)% | |||
Revenue Projections [Member] | Maximum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Impaired, Method for Fair Value Determination | 16.5% | |||
EBITDA Margin [Member] | Minimum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Impaired, Method for Fair Value Determination | 10.0% | |||
EBITDA Margin [Member] | Maximum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Impaired, Method for Fair Value Determination | 18.0% | |||
Income Tax Rate [Member] | Minimum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Impaired, Method for Fair Value Determination | 26.4% | |||
Income Tax Rate [Member] | Maximum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Impaired, Method for Fair Value Determination | 26.6% | |||
Capital Expenditure [Member] | Minimum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Impaired, Method for Fair Value Determination | $0.1 | |||
Capital Expenditure [Member] | Maximum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Impaired, Method for Fair Value Determination | $57.8 | |||
Discount Rate Range [Member] | Minimum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Impaired, Method for Fair Value Determination | 12.0% | |||
Discount Rate Range [Member] | Maximum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Impaired, Method for Fair Value Determination | 15.8% | |||
TTEC Digital | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill | $ 500,576 | 502,806 | 505,222 | |
TTEC Engage | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Fair Value Disclosure | $ 1,092,100 | |||
Goodwill | $ 308,400 | $ 308,412 | $ 305,039 | $ 234,259 |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 13% | |||
TTEC Engage | Discount Rate | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Impaired, Method for Fair Value Determination | 2.0% |
OTHER INTANGIBLE ASSETS (SCHEDU
OTHER INTANGIBLE ASSETS (SCHEDULE OF INTANGIBLE ASSETS TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, accumulated amortization of other intangible assets | $ 233,909 | $ 212,349 |
Amortization | (35,578) | (37,143) |
Impairments | 0 | 0 |
Acquisitions and Adjustments | 0 | 61,310 |
Effect of Foreign Currency | 102 | (2,607) |
Ending balance, accumulated amortization of other intangible assets | 198,433 | 233,909 |
Customer Relationships [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, accumulated amortization of other intangible assets | 355,717 | 299,948 |
Amortization | 0 | 0 |
Impairments | 0 | 0 |
Acquisitions and Adjustments | 0 | 61,310 |
Effect of Foreign Currency | (967) | (5,541) |
Ending balance, accumulated amortization of other intangible assets | 354,750 | 355,717 |
Customer Relationships Accumulated Amortization [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, accumulated amortization of other intangible assets | (123,882) | (93,582) |
Amortization | (33,768) | (33,244) |
Impairments | 0 | 0 |
Acquisitions and Adjustments | 0 | 0 |
Effect of Foreign Currency | 426 | 2,944 |
Ending balance, accumulated amortization of other intangible assets | (157,224) | (123,882) |
Other Intangible Assets [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, accumulated amortization of other intangible assets | 19,712 | 19,731 |
Amortization | 0 | 0 |
Impairments | 0 | 0 |
Acquisitions and Adjustments | 0 | 0 |
Effect of Foreign Currency | 659 | (19) |
Ending balance, accumulated amortization of other intangible assets | 20,371 | 19,712 |
Other Intangible Assets Accumulated Amortization [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, accumulated amortization of other intangible assets | (17,638) | (13,748) |
Amortization | (1,810) | (3,899) |
Impairments | 0 | 0 |
Acquisitions and Adjustments | 0 | 0 |
Effect of Foreign Currency | (16) | 9 |
Ending balance, accumulated amortization of other intangible assets | $ (19,464) | $ (17,638) |
OTHER INTANGIBLE ASSETS (FUTURE
OTHER INTANGIBLE ASSETS (FUTURE AMORTIZATION EXPENSE TABLE) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
OTHER INTANGIBLE ASSETS [Abstract] | |
Year 1 | $ 33,042 |
Year 2 | 31,092 |
Year 3 | 31,033 |
Year 4 | 31,033 |
Year 5 | 30,261 |
Thereafter | 41,972 |
Total, finite lived intangible assets | $ 198,433 |
OTHER INTANGIBLE ASSETS (NARRAT
OTHER INTANGIBLE ASSETS (NARRATIVE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average Useful Life [Line Items] | |||
Amortization expense related to intangible assets | $ 35,578 | $ 37,143 | |
Impairment losses | 11,733 | 13,749 | $ 11,254 |
TTEC Digital | |||
Weighted Average Useful Life [Line Items] | |||
Amortization expense related to intangible assets | 35,600 | 37,100 | $ 32,000 |
Customer Relationships [Member] | |||
Weighted Average Useful Life [Line Items] | |||
Amortization expense related to intangible assets | $ 0 | 0 | |
Customer Relationships [Member] | TTEC Digital | |||
Weighted Average Useful Life [Line Items] | |||
Weighted average useful life of intangible assets | 6 years 1 month | ||
Other Intangible Assets [Member] | |||
Weighted Average Useful Life [Line Items] | |||
Amortization expense related to intangible assets | $ 0 | $ 0 | |
Other Intangible Assets [Member] | TTEC Digital | |||
Weighted Average Useful Life [Line Items] | |||
Weighted average useful life of intangible assets | 1 year 7 months |
DERIVATIVES (OCI ROLLFORWARD) (
DERIVATIVES (OCI ROLLFORWARD) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
DERIVATIVES [ABSTRACT] | |||
Aggregate unrealized net gain/(loss) at beginning of year | $ 89 | $ (40) | $ 8,431 |
Add: Net gain/(loss) from change in fair value of cash flow hedges | 3,292 | 2,281 | (12,126) |
Less: Net (gain)/loss reclassified to earnings from effective hedges | 2,934 | (2,152) | 3,655 |
Aggregate unrealized net gain/(loss) at end of period | $ 6,315 | $ 89 | $ (40) |
DERIVATIVES (NOTIONAL TABLE) (D
DERIVATIVES (NOTIONAL TABLE) (Details) - Foreign Exchange Forward ₱ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 PHP (₱) | Dec. 31, 2023 MXN ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 PHP (₱) | Dec. 31, 2022 MXN ($) |
Derivative [Line Items] | ||||||||
Notional Amount | $ 211,667 | $ 211,722 | ||||||
CAD | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 2,250 | $ 1,670 | $ 12,000 | 9,177 | ||||
% Maturing in the Next 12 Months | 100% | 100% | 100% | 100% | ||||
Contract Maturity Date | Sep. 30, 2024 | |||||||
PHP | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 165,842 | ₱ 9,324,000 | 157,855 | ₱ 8,617,000 | ||||
% Maturing in the Next 12 Months | 58.70% | 58.70% | 58.70% | 58.70% | ||||
Contract Maturity Date | Dec. 31, 2026 | |||||||
MXN | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 44,155 | $ 938,000 | $ 44,690 | $ 1,024,500 | ||||
% Maturing in the Next 12 Months | 60.80% | 60.80% | 60.80% | 60.80% | ||||
Contract Maturity Date | Dec. 31, 2026 |
DERIVATIVES (BALANCE SHEET CLAS
DERIVATIVES (BALANCE SHEET CLASSIFICATION) (Details) - Foreign Exchange [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | $ 8,531 | $ 115 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Prepaids And Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 7,527 | 4,001 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 2,415 | 3,019 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | (1,214) | (5,157) |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | (197) | (1,748) |
Not Designated as Hedging Instruments [Member] | Fair Value [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 207 | 205 |
Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Prepaids And Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 327 | 281 |
Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | $ (120) | $ (76) |
DERIVATIVES (INCOME STATEMENT C
DERIVATIVES (INCOME STATEMENT CLASSIFICATION) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Sales Revenue Services Net | $ 2,462,817 | $ 2,443,707 | $ 2,273,062 |
Other nonoperating income expense | (4,126) | 10,161 | $ 2,315 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) recognized in other comprehensive income (loss) - effective portion, net of tax: | 2,934 | (2,152) | |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Reclassification from accumulated other comprehensive income | Revenue | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Sales Revenue Services Net | 3,964 | (2,906) | |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other nonoperating income expense | $ 1,882 | $ 827 |
DERIVATIVES (NARRATIVE) (Detail
DERIVATIVES (NARRATIVE) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 73.3 | $ 80.8 |
FAIR VALUE (DERIVATIVES TABLE)
FAIR VALUE (DERIVATIVES TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | $ 8,531 | $ 115 |
Fair value hedges | 207 | 205 |
Total net derivative asset (liability) | 8,738 | 320 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | 8,531 | 115 |
Fair value hedges | 207 | 205 |
Total net derivative asset (liability) | $ 8,738 | $ 320 |
FAIR VALUE (FAIR VALUE ASSETS A
FAIR VALUE (FAIR VALUE ASSETS AND LIABILITIES) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets [Abstract] | ||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets, Prepaids and other current assets | |||
Business Combination, Contingent Consideration, Asset | $ 5,724 | $ 0 | ||
Liabilities [Abstract] | ||||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities, Other liabilities, noncurrent | Other current liabilities, Other liabilities, noncurrent | ||
Contingent consideration payable | $ (1,496) | $ (5,916) | (9,600) | |
Redeemable noncontrolling interest | 0 | (55,645) | $ (56,316) | $ (52,976) |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Assets [Abstract] | ||||
Deferred Compensation Plan Assets | 31,082 | 25,046 | ||
Total assets | 31,082 | 25,046 | ||
Liabilities [Abstract] | ||||
Redeemable noncontrolling interest | 0 | |||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Assets [Abstract] | ||||
Derivative assets, net | 8,738 | 320 | ||
Deferred Compensation Plan Assets | 0 | |||
Total assets | 8,738 | 320 | ||
Liabilities [Abstract] | ||||
Derivative instruments, net | 0 | |||
Total liabilities | 0 | |||
Redeemable noncontrolling interest | 0 | |||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets [Abstract] | ||||
Business Combination, Contingent Consideration, Asset | 5,724 | |||
Total assets | 0 | 5,724 | ||
Liabilities [Abstract] | ||||
Contingent consideration payable | (1,496) | (5,916) | ||
Total liabilities | (1,496) | (5,916) | ||
Redeemable noncontrolling interest | $ 0 | $ (55,645) |
FAIR VALUE (CONTINGENT CONSIDER
FAIR VALUE (CONTINGENT CONSIDERATION TABLE) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Business acquisitions, Contingent Consideration [Line Items] | |||
Beginning balance, contingent consideration payable | $ (5,916) | $ (9,600) | |
Acquisitions | 8,816 | ||
Payments | (7,400) | (9,600) | |
Contingent Consideration Payable Imputed Interest Expense and Other Adjustments | (2,980) | 2,900 | |
Ending balance, contingent consideration payable | (1,496) | (5,916) | |
Beginning Balance Business Combination Contingent Consideration Asset | 5,724 | 0 | |
Contingent consideration receivable acquired during period | 10,370 | ||
Payments Made To Contingent Consideration Receivable During Period | (1,343) | 0 | |
Contingent Consideration Receivable Imputed Interest Benefit and Other Adjustments | (4,381) | (4,646) | |
Ending balance, contingent consideration asset | 5,724 | ||
VoiceFoundry US | |||
Business acquisitions, Contingent Consideration [Line Items] | |||
Beginning balance, contingent consideration payable | 0 | (7,414) | |
Payments | (7,414) | ||
Ending balance, contingent consideration payable | 0 | ||
VoiceFoundry ASEAN | |||
Business acquisitions, Contingent Consideration [Line Items] | |||
Beginning balance, contingent consideration payable | 0 | (2,186) | |
Payments | (2,186) | ||
Ending balance, contingent consideration payable | 0 | ||
Faneuil | |||
Business acquisitions, Contingent Consideration [Line Items] | |||
Beginning balance, contingent consideration payable | (5,916) | 0 | |
Acquisitions | 8,816 | ||
Payments | (7,400) | ||
Contingent Consideration Payable Imputed Interest Expense and Other Adjustments | (2,980) | 2,900 | |
Ending balance, contingent consideration payable | (1,496) | (5,916) | |
Payments Made To Contingent Consideration Receivable During Period | $ 7,400 | ||
Faneuil receivable [Member] | |||
Business acquisitions, Contingent Consideration [Line Items] | |||
Beginning Balance Business Combination Contingent Consideration Asset | 5,724 | 0 | |
Contingent consideration receivable acquired during period | 10,370 | ||
Payments Made To Contingent Consideration Receivable During Period | (1,343) | 0 | |
Contingent Consideration Receivable Imputed Interest Benefit and Other Adjustments | $ (4,381) | (4,646) | |
Ending balance, contingent consideration asset | $ 5,724 |
FAIR VALUE (NARRATIVE) (Details
FAIR VALUE (NARRATIVE) (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Apr. 01, 2022 USD ($) | Mar. 31, 2022 USD ($) | |
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Line of credit | $ 995,000 | $ 960,000 | ||||
Average interest rate on annual borrowings | 6.70% | 3.10% | ||||
Business Combination Contingent Consideration Liability | $ 1,496 | $ 5,916 | $ 9,600 | |||
Contingent Consideration Receivable Imputed Interest Benefit and Other Adjustments | $ (4,381) | (4,646) | ||||
VoiceFoundry US | ||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Business Combination Contingent Consideration Liability | 0 | 7,414 | ||||
VoiceFoundry US | Discount Rate | ||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Business combination contingent consideration measurement input | 23.1 | |||||
VoiceFoundry ASEAN | ||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Business Combination Contingent Consideration Liability | 0 | 2,186 | ||||
VoiceFoundry ASEAN | Discount Rate | ||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Business combination contingent consideration measurement input | 18.4 | |||||
VoiceFoundry Acquisitions | ||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Business Combination Contingent Consideration Liability | $ 9,600 | |||||
Increase (decrease) in contingent consideration payable | 1,200 | $ 4,300 | ||||
Faneuil | ||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Business Combination Contingent Consideration Liability | $ 1,496 | 5,916 | $ 0 | $ 8,800 | ||
Increase (decrease) in contingent consideration payable | $ (3,000) | 2,900 | ||||
Faneuil | Discount Rate | ||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Business combination contingent consideration measurement input | 19.3 | |||||
Faneuil receivable [Member] | ||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Contingent Consideration Receivable Imputed Interest Benefit and Other Adjustments | $ (4,381) | $ (4,646) |
INCOME TAXES (SOURCES OF PRE-TA
INCOME TAXES (SOURCES OF PRE-TAX INCOME TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Sources of pre-tax accounting income | |||
Domestic | $ (39,871) | $ 52,887 | $ 108,160 |
Foreign | 80,595 | 91,561 | 99,724 |
Income before income taxes | $ 40,724 | $ 144,448 | $ 207,884 |
INCOME TAXES (PROVISION TABLE)
INCOME TAXES (PROVISION TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current provision | |||
Federal current | $ 3,625 | $ 10,816 | $ 20,697 |
State current | 1,893 | 5,245 | 8,006 |
Foreign current | 24,470 | 22,055 | 20,161 |
Total current provision | 29,988 | 38,116 | 48,864 |
Deferred provision (benefit) | |||
Federal deferred | (14,357) | (3,128) | (7,017) |
State deferred | (848) | (192) | (402) |
Foreign deferred | 7,677 | (7,681) | 8,250 |
Deferred Income Tax Expense (Benefit), Total | (7,528) | (11,001) | 831 |
Income Tax Expense (Benefit), Total | $ 22,460 | $ 27,115 | $ 49,695 |
INCOME TAXES (TAX RATE RECONCIL
INCOME TAXES (TAX RATE RECONCILIATION TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective tax rate reconciliation | |||
Income tax per U.S. federal statutory rate (21%, 21%, 21%) | $ 8,552 | $ 30,334 | $ 43,655 |
State income taxes, net of federal deduction | (1,355) | 2,717 | 4,588 |
Change in valuation allowances | 14,917 | (3,278) | 12,567 |
Foreign income taxes at different rates than the U.S. | 208 | 1,202 | (1,416) |
Taxed related to compensation | (1,542) | 66 | 2,788 |
Liabilities for uncertain tax positions | 1,759 | (1,435) | (790) |
(Income)/losses of foreign branch operations | (283) | 2,315 | (187) |
Non-taxable earnings of minority interest | (1,508) | (2,638) | (3,085) |
Foreign dividend less foreign tax credits | (1,294) | (1,616) | (1,142) |
State and federal income tax credits and NOLs | (4,611) | (4,604) | (4,531) |
Foreign earnings taxed currently in U.S. | 2,409 | 2,978 | 1,930 |
Taxes related to prior year filings | 675 | (432) | (1,192) |
Other | 1,449 | 1,638 | 2,086 |
Income Tax Expense (Benefit), Total | $ 22,460 | $ 27,115 | $ 49,695 |
Effective income tax rate | 55.20% | 18.80% | 23.90% |
INCOME TAXES (DTA AND DTL TABLE
INCOME TAXES (DTA AND DTL TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets, gross | ||||
Accrued compensation and employee benefits | $ 12,687 | $ 11,627 | ||
Allowance for doubtful accounts, insurance and other accruals | 7,855 | 4,109 | ||
Amortization of deferred lease liabilities | 21,683 | 18,475 | ||
Net operating losses | 22,241 | 18,312 | ||
Customer acquisition and deferred revenue accruals | 15,991 | 18,749 | ||
Federal and state tax credits, net | 3,456 | 3,247 | ||
Deferred Tax Assets, Investments | 7,626 | 1,149 | ||
Depreciation and amortization | 19,570 | 7,896 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 13,412 | 0 | ||
Deferred Tax Asset Interest Expense | 14,957 | 0 | ||
Other | 630 | 3,931 | ||
Total deferred tax assets, gross | 140,108 | 87,495 | ||
Valuation allowances | (39,902) | (24,944) | $ (29,620) | $ (18,697) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 100,206 | 62,551 | ||
Deferred tax liabilities | ||||
Intangible Assets | (41,447) | (28,848) | ||
DTL Operating lease assets | (18,362) | (15,594) | ||
Other | (5,383) | (3,254) | ||
Total deferred tax liabilities | (65,192) | (47,696) | ||
Deferred Tax Assets, Net, Total | $ 35,014 | $ 14,855 |
INCOME TAXES (VALUATION ALLOWAN
INCOME TAXES (VALUATION ALLOWANCE ROLLFORWARD TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES [ABSTRACT] | |||
Beginning balance, deferred income tax valuation allowance | $ 24,944 | $ 29,620 | $ 18,697 |
Additions to Deferred Income Tax Expense | 18,410 | 2,248 | 14,660 |
Reduction of Deferred Income Tax Expense | (3,452) | (6,924) | (3,737) |
Ending balance, deferred income tax valuation allowance | $ 39,902 | $ 24,944 | $ 29,620 |
INCOME TAXES (OPERATING LOSS CA
INCOME TAXES (OPERATING LOSS CARRY FORWARDS TABLE) (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
INCOME TAXES [ABSTRACT] | |
Year 1 | $ 10 |
Year 2 | 245 |
Year 3 | 971 |
Year 4 | 375 |
After Year 5 | 9,621 |
No expiration | 11,024 |
Total | $ 22,246 |
INCOME TAXES (UNCERTAIN TAX BEN
INCOME TAXES (UNCERTAIN TAX BENEFITS TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits Rollforward | |||
Beginning balance, unrecognized tax benefits | $ 6,567 | $ 6,903 | $ 7,509 |
Additions for current year tax positions | 212 | 143 | 220 |
Reductions in prior year tax positions | (203) | (479) | (826) |
Ending balance, unrecognized tax benefits | $ 6,576 | $ 6,567 | $ 6,903 |
INCOME TAXES (JURISDICTIONS OPE
INCOME TAXES (JURISDICTIONS OPEN TO TAX EXAMINATIONS TABLE) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
United States [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2017 - Present |
Australia [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2019 - Present |
India [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2017 - Present |
Canada [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2019 - Present |
Mexico [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2018 - Present |
Philippines [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2019 - Present |
INCOME TAXES (NARRATIVE) (Detai
INCOME TAXES (NARRATIVE) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement Narrative [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% | ||
Effective income tax rate | 21% | 21% | 21% | ||
Deferred Tax Assets, Net | $ 100,206 | $ 62,551 | |||
Valuation allowances | 39,902 | 24,944 | $ 29,620 | $ 18,697 | |
Estimated amount of foreign earnings to be invested outside United States | $ 176,000 | ||||
Income Tax Holidays Description | The Company has been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines and Costa Rica. Generally, a Tax Holiday is an agreement between the Company and a foreign government under which the Company receives certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, the Company has been granted multiple agreements under local laws which result in an overall reduced tax rate. These incentives have varying benefit year over year and expire at various times beginning in 2031. | ||||
Aggregate Effect on Income Tax Expense for Income Tax Holiday Jurisdictions | $ 2,300 | $ 1,600 | $ 6,300 | ||
Diluted Net Income Per Share Effect For Income Tax Holiday Jurisdictions | $ 0.05 | $ 0.04 | $ 0.13 | ||
Total Interest and Penalties Accrued Related to Uncertain Tax Positions Recorded in Balance Sheets | $ 2,700 | $ 1,800 | $ 2,800 | ||
Reserve for Uncertain Tax Benefits, Net | 6,600 | $ 6,600 | |||
Decrease of Unrecognized Tax Benefits over Next 12 Months | 9,300 | ||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 300 | ||||
Organization for Economic Co-operation Development OECD [Member] | Minimum | |||||
Income Statement Narrative [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15% | ||||
Effective income tax rate | 15% | ||||
United States [Member] | |||||
Income Statement Narrative [Line Items] | |||||
Deferred Tax Assets, Net | 38,200 | ||||
Net Change in Valuation Allowance | $ 15,300 | ||||
Income Tax Examination Years Under Audit | 2017 and 2018 | ||||
California | |||||
Income Statement Narrative [Line Items] | |||||
Income Tax Examination Years Under Audit | 2017 and 2018 | ||||
Foreign Jurisdictions [Member] | |||||
Income Statement Narrative [Line Items] | |||||
Deferred Tax Assets, Net | $ 3,100 | ||||
Australia Mexico Brazil and UK Jurisdictions [Member] | Not Realizable Standard [Member] | |||||
Income Statement Narrative [Line Items] | |||||
Net Change in Valuation Allowance | 3,100 | ||||
Canada UK Netherlands and Various Jurisdictions [Member] | Not Realizable Standard [Member] | |||||
Income Statement Narrative [Line Items] | |||||
Net Change in Valuation Allowance | $ (3,500) | ||||
Philippines [Member] | |||||
Income Statement Narrative [Line Items] | |||||
Income Tax Examination Years Under Audit | 2020 | ||||
Philippines and Costa Rica [Member] | |||||
Income Statement Narrative [Line Items] | |||||
Income Tax Holiday Termination Date | 2031 | ||||
India [Member] | |||||
Income Statement Narrative [Line Items] | |||||
Income Tax Examination Years Under Audit | 2017 through 2022 | ||||
WISCONSIN | |||||
Income Statement Narrative [Line Items] | |||||
Income Tax Examination Years Under Audit | 2019 |
IMPAIRMENT OF ASSETS (NARRATIVE
IMPAIRMENT OF ASSETS (NARRATIVE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Impaired Long-Lived Assets Held and Used, Asset Description | The Company evaluated the recoverability of its leasehold improvement assets at certain customer engagement centers as well as all internally developed software projects. | ||
Impaired Long-Lived Assets Held and Used, Method for Determining Fair Value | To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. | ||
Impairment losses | $ 11,733 | $ 13,749 | $ 11,254 |
Leasehold Improvements Internally Developed Software And Right Of Use Lease Asset [Member] | |||
Impairment losses | $ 11,700 | $ 13,700 | $ 11,300 |
INDEBTEDNESS (NARRATIVE) (Detai
INDEBTEDNESS (NARRATIVE) (Details) - USD ($) | 12 Months Ended | ||||||
Feb. 26, 2024 | Apr. 03, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2024 | Nov. 23, 2021 | Mar. 25, 2021 | |
Maximum borrowing capacity | $ 1,300,000 | ||||||
Percentage of receivables factored | $ 25 | ||||||
Credit facility interest rate | 6.70% | 3.10% | |||||
Line of Credit Facility, Collateral | Letter of credit fees are one eighth of 1% of the stated amount of the letter of credit on the date of issuance, renewal or amendment, plus an annual fee equal to the borrowing margin for SOFR loans. | ||||||
Line of credit | $ 995,000,000 | $ 960,000,000 | |||||
Average daily utilization under credit facility | 1,072,400,000 | $ 1,037,400,000 | |||||
Remaining borrowing capacity under credit facility | 90,000,000 | ||||||
Letters Of Credit Issued Outside Line Of Credit Facility | 300,000 | ||||||
Line Of Credit Facility Letters Of Credit Issued | $ 200,000 | ||||||
Sixth Amendment [Member] | |||||||
Initiation date of current line of credit agreement | Nov. 23, 2021 | ||||||
Line of Credit Facility, Expiration Date | Nov. 23, 2026 | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,500,000,000 | $ 1,500,000,000 | |||||
Financing Receivable, Revolving, Converted to Term Loan | $ 300,000,000 | ||||||
Seventh Amendment [Member] | |||||||
Initiation date of current line of credit agreement | Apr. 03, 2023 | ||||||
Description of line of credit agreement | On April 3, 2023, the Company entered into a Seventh Amendment to the Credit Agreement which replaces the use of LIBOR with SOFR as of the date of the amendment, and, therefore, will affect the interest rates paid for a portion of the Credit Facility starting in the second quarter of 2023. | ||||||
Eighth Amendment [Member] | |||||||
Initiation date of current line of credit agreement | Feb. 26, 2024 | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,300,000,000 | ||||||
Description of line of credit agreement | The Company’s Credit Agreement includes a number of financial covenants and operating restrictions of which failure to comply could result in a default under the Credit Agreement. On February 26, 2024, the Company entered into an Eighth Amendment to the Credit Agreement to increase the net leverage ratio covenant, for a period starting with the quarter ending March 31, 2024 through quarter ending March 31, 2025, from the current 3.5 to 1 to between 4.0 to 1 and 4.5 to 1, as may be applicable in different quarters; and reduced the total lenders’ commitment from $1.5 billion to $1.3 billion. | ||||||
Minimum | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||||||
Credit facility interest rate | 0.50% | ||||||
Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Credit facility interest rate | 0% | ||||||
Minimum | Company's net leverage ratio [Member] | |||||||
Credit facility interest rate | 1% | ||||||
Maximum | |||||||
Proceeds from factored receivables | $ 100,000,000 | ||||||
Receivables Held-for-sale, Amount | 100,000,000 | ||||||
Maximum | Line of Credit [Member] | |||||||
Letters of Credit Outstanding, Amount | $ 100,000,000 | ||||||
Maximum | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||||||
Credit facility interest rate | 1% | ||||||
Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Credit facility interest rate | 1% | ||||||
Maximum | Company's net leverage ratio [Member] | |||||||
Credit facility interest rate | 2% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (NARRATIVE) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Letters of credit issued under credit facility | $ 0.2 |
Letters Of Credit Issued Outside Line Of Credit Facility | $ 0.3 |
DEFERRED REVENUE AND COSTS (DEF
DEFERRED REVENUE AND COSTS (DEFERRED REVENUE CLASSIFICATION TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
DEFERRED REVENUE AND COSTS [ABSTRACT] | ||
Deferred revenue - current | $ 81,171 | $ 87,846 |
Deferred revenue - long-term | 4,814 | 5,760 |
Total deferred revenue | $ 85,985 | $ 93,606 |
DEFERRED REVENUE AND COSTS (D_2
DEFERRED REVENUE AND COSTS (DEFERRED COSTS CLASSIFICATION TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
DEFERRED REVENUE AND COSTS [ABSTRACT] | ||
Deferred Costs - Current | $ 32,672 | $ 42,632 |
Deferred Costs - Long-term | 24,245 | 6,550 |
Total Deferred Costs | $ 56,917 | $ 49,182 |
DEFERRED REVENUE (SCHEDULE OF C
DEFERRED REVENUE (SCHEDULE OF CHANGES IN DEFERRED REVENUE) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
DEFERRED REVENUE AND COSTS [ABSTRACT] | |
Deferred Revenue, Beginning Balance | $ 93,606 |
Deferred Revenue, Additions | 332,021 |
Amortization | (339,642) |
Deferred Revenue, Ending Balance | $ 85,985 |
DEFERRED REVENUE AND REMAININ_2
DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS (NARRATIVE) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract with Customer, Liability, Revenue Recognized | $ (339,642) | |
Contract with Customer, Liability, Revenue Recognized | 332,000 | $ 288,500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Amount | $ 332,400 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 5 years |
LEASE COST (Details)
LEASE COST (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Cost Table Line Items | |||
Total lease cost | $ 52,100 | $ 49,508 | $ 59,243 |
Depreciation and Amortization | |||
Lease Cost Table Line Items | |||
Amortization of ROU assets - finance leases | 2,832 | 3,785 | 6,674 |
Interest Expense | |||
Lease Cost Table Line Items | |||
Interest on lease liabilities - finance leases | 115 | 79 | 136 |
Cost of Services | |||
Lease Cost Table Line Items | |||
Operating lease cost (cost resulting from lease payments) | 36,872 | 34,786 | 39,087 |
Short-term Lease, Cost | 1,182 | 3,428 | 4,529 |
Variable Lease, Cost | 827 | 1,320 | 1,246 |
Selling General And Administrative Expenses [Member] | |||
Lease Cost Table Line Items | |||
Operating lease cost (cost resulting from lease payments) | 1,625 | 2,524 | 2,770 |
Sublease Income | (555) | (710) | (807) |
Restructuring | |||
Lease Cost Table Line Items | |||
Operating lease cost (cost resulting from lease payments) | 788 | 925 | 1,614 |
Impairment | |||
Lease Cost Table Line Items | |||
Operating lease cost (cost resulting from lease payments) | 10,096 | 4,821 | 5,338 |
Other income (expense), net | |||
Lease Cost Table Line Items | |||
Operating lease cost (cost resulting from lease payments) | 1,352 | 1,298 | 1,240 |
Sublease Income | $ (3,034) | $ (2,748) | $ (2,584) |
LEASES OTHER INFORMATION (Detai
LEASES OTHER INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance lease - operating cash flows | $ 38 | $ 26 | $ 45 |
Finance lease - financing cash flows | 2,527 | 3,087 | 6,385 |
New ROU assets - operating leases | 28,024 | 36,040 | 15,280 |
Modified ROU assets - operating leases | 44,129 | 10,629 | 736 |
New ROU assets - finance leases | 3,124 | 483 | 1,141 |
Fixed payments | |||
Operating Lease, Payments | $ 49,691 | $ 51,693 | $ 52,358 |
LEASE TERM AND DISCOUNT RATE (D
LEASE TERM AND DISCOUNT RATE (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
LEASES [ABSTRACT] | |||
Finance Lease, Weighted Average Remaining Lease Term | 2 years 2 months 20 days | 1 year 10 months 17 days | 2 years 4 months 4 days |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 1 month 14 days | 4 years 22 days | 3 years 3 months 27 days |
Finance Lease, Weighted Average Discount Rate, Percent | 5.51% | 2.07% | 1.85% |
Operating Lease, Weighted Average Discount Rate, Percent | 6.88% | 4.91% | 5.38% |
LEASE ASSETS AND LIABILITIES (D
LEASE ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS. | ||
Operating lease assets | $ 121,574 | $ 92,431 |
Finance lease assets | $ 4,106 | $ 3,814 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Total leased assets | $ 125,680 | $ 96,245 |
Current | ||
Operating Lease, Liability, Current | 38,271 | 35,271 |
Finance Lease, Liability, Current | $ 2,100 | $ 2,056 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Non-current | ||
Operating Lease, Liability, Noncurrent | $ 96,809 | $ 69,575 |
Finance Lease, Liability, Noncurrent | $ 1,887 | $ 1,257 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities, noncurrent | Other liabilities, noncurrent |
Total lease liabilities | $ 139,067 | $ 108,159 |
LEASE (FUTURE MINIMUM LEASE PAY
LEASE (FUTURE MINIMUM LEASE PAYMENTS TABLE) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Finance Leases - Year 1 | $ 2,155 | $ 2,071 |
Finance Leases - Year 2 | 1,378 | 1,020 |
Finance Leases - Year 3 | 704 | 268 |
Finance Leases - Year 4 | 0 | 14 |
Finance Leases - Year 5 | 0 | 0 |
Thereafter | 0 | 0 |
Total minimum lease payments | 4,237 | 3,373 |
Less: imputed interest | (250) | (60) |
Total lease liability | $ 3,987 | $ 3,313 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities, Other liabilities, noncurrent | Other current liabilities, Other liabilities, noncurrent |
Finance Lease, Liability, Payments, Due | $ 4,237 | $ 3,373 |
Operating Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Leases - Year 1 | 46,258 | 38,783 |
Operating Leases - Year 2 | 36,683 | 26,789 |
Operating Leases - Year 3 | 30,984 | 18,229 |
Operating Leases - Year 4 | 25,539 | 12,906 |
Operating Leases - Year 5 | 11,794 | 9,749 |
Thereafter | 6,267 | 10,320 |
Total minimum lease payments | 157,525 | 116,776 |
Less: Imputed Interest. | (22,445) | (11,930) |
Total lease liability | 135,080 | 104,846 |
Sublease Income [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Sub-lease income - Year 1 | (3,038) | (3,527) |
Sub-lease income - Year 2 | (3,015) | (2,940) |
Sub-lease income - Year 3 | (490) | (2,940) |
Sub-lease income - Year 4 | 0 | (490) |
Sub-lease income - Year 5 | 0 | 0 |
Sub-lease income - thereafter | 0 | 0 |
Sublease Income Total | (6,543) | (9,897) |
Sublease Income Total | $ 6,543 | $ 9,897 |
LEASE (NARRATIVE) (Details)
LEASE (NARRATIVE) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true |
Sub-lease A [Member] | |
Lease start date | Jan. 01, 2009 |
Lease Expiration Date | Dec. 31, 2026 |
Sub-lease B [Member] | |
Lease start date | Nov. 06, 2017 |
Lease Expiration Date | May 31, 2021 |
Sub-lease C [Member] | |
Lease start date | Mar. 01, 2019 |
Lease Expiration Date | Jul. 21, 2023 |
Sub-lease D [Member] | |
Lease start date | Feb. 06, 2020 |
Lease Expiration Date | Jun. 14, 2023 |
Sub-lease E [Member] | |
Lease start date | Jun. 29, 2022 |
Lease Expiration Date | Jan. 31, 2024 |
Minimum | |
Lessee, Operating Lease, Term of Contract | 1 year |
Maximum | |
Lessee, Operating Lease, Term of Contract | 10 years |
OTHER LONG TERM LIABILITIES (De
OTHER LONG TERM LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities, Noncurrent [Abstract] | ||
Deferred revenue - long-term | $ 4,814 | $ 5,760 |
Deferred Compensation Liability, Classified, Noncurrent | 30,999 | 25,889 |
Other Accrued Liabilities, Noncurrent | 36,270 | 34,655 |
Other Liabilities, Noncurrent, Total | $ 72,083 | $ 66,304 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (ROLLFORWARD TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | $ 578,105 | $ 538,025 | $ 457,762 |
Ending balance, value | 615,542 | 578,105 | 538,025 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | (126,301) | (98,426) | (72,156) |
Other comprehensive income (loss) before reclassifications | 34,121 | (25,451) | (29,637) |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,304 | (2,424) | 3,367 |
Net current period other comprehensive income (loss) | 36,425 | (27,875) | (26,270) |
Ending balance, value | (89,876) | (126,301) | (98,426) |
Foreign Currency Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | (123,734) | (95,547) | (78,139) |
Other comprehensive income (loss) before reclassifications | 30,891 | (28,187) | (17,408) |
Amounts reclassified from accumulated other comprehensive income (loss) | (301) | ||
Net current period other comprehensive income (loss) | 30,590 | (28,187) | (17,408) |
Ending balance, value | (93,144) | (123,734) | (95,547) |
Derivative Valuation, Net of Tax | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | 89 | (40) | 8,431 |
Other comprehensive income (loss) before reclassifications | 3,292 | 2,281 | (12,126) |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,934 | (2,152) | 3,655 |
Net current period other comprehensive income (loss) | 6,226 | 129 | (8,471) |
Ending balance, value | 6,315 | 89 | (40) |
Other, Net of Tax. | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | (2,656) | (2,839) | (2,448) |
Other comprehensive income (loss) before reclassifications | (62) | 455 | (103) |
Amounts reclassified from accumulated other comprehensive income (loss) | (329) | (272) | (288) |
Net current period other comprehensive income (loss) | (391) | 183 | (391) |
Ending balance, value | $ (3,047) | $ (2,656) | $ (2,839) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (INCOME STATEMENT CLASSIFICATION TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Presentation of Income Statement Reclassifications [Line Items] | |||
Sales Revenue Services Net | $ 2,462,817 | $ 2,443,707 | $ 2,273,062 |
Benefit from (provision for) income taxes | (22,460) | (27,115) | (49,695) |
Net income | 18,264 | 117,333 | 158,189 |
Accumulated Other Comprehensive Income (Loss) | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Net Income (Loss) - Other | (2,304) | 2,424 | (3,367) |
Foreign Currency Translation Adjustment | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Net Income (Loss) - Other | 301 | ||
Tax effect | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Provision for income taxes - Other | 37 | 30 | 32 |
Derivative Valuation, Net of Tax | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Net Income (Loss) - Other | (2,934) | 2,152 | (3,655) |
Cost of Services | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Cost of services | (366) | (302) | (320) |
Reclassification from accumulated other comprehensive income | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Net Income (Loss) - Other | (329) | (272) | (288) |
Reclassification from accumulated other comprehensive income | Tax effect | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Benefit from (provision for) income taxes | (1,030) | 754 | (1,284) |
Reclassification from accumulated other comprehensive income | Derivative Valuation, Net of Tax | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Net income | 2,934 | (2,152) | 3,655 |
Foreign Exchange Forward | Reclassification from accumulated other comprehensive income | Foreign Currency Translation Adjustment | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Sales Revenue Services Net | $ 3,964 | $ (2,906) | $ 4,939 |
WEIGHTED AVERAGE SHARE COUNTS_2
WEIGHTED AVERAGE SHARE COUNTS (DILUTED SHARES TABLE) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Shares used in basic earnings per share calculation | 47,335 | 47,121 | 46,890 |
Effect of dilutive securities: | |||
Restricted stock units | 78 | 205 | 468 |
Performance-based restricted stock units | 6 | 9 | 28 |
Total effects of dilutive securities | 84 | 214 | 496 |
Shares used in dilutive earnings per share calculation | 47,419 | 47,335 | 47,386 |
WEIGHTED AVERAGE SHARE COUNTS_3
WEIGHTED AVERAGE SHARE COUNTS (NARRATIVE) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units (RSUs) [Member] | |||
Anti-dilutive options to purchase common stock [Line Items] | |||
Anti-dilutive securities | 935 | 462 | 124 |
EMPLOYEE COMPENSATION PLANS (RS
EMPLOYEE COMPENSATION PLANS (RSU ROLLFORWARD TABLE) (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
RSU Rollforward by Shares | |
Unvested as of beginning of period, shares | shares | 1,358,723 |
Granted, shares | shares | 729,076 |
Vested, shares | shares | (273,558) |
Cancellations/expirations, shares | shares | (209,968) |
Unvested as of end of period, shares | shares | 1,604,273 |
RSU Rollforward by Weighted Average Grant Date Fair Value | |
Unvested as of beginning of period, weighted average grant date fair value | $ / shares | $ 65.37 |
Granted, weighted average grant date fair value | $ / shares | 33.34 |
Vested, weighted average grant date fair value | $ / shares | 61.90 |
Cancellations/expirations, weighted average grant date fair value | $ / shares | 63.78 |
Unvested as of end of period, weighted average grant date fair value | $ / shares | $ 51.61 |
EMPLOYEE COMPENSATION PLANS (EQ
EMPLOYEE COMPENSATION PLANS (EQUITY BASED COMPENSATION EXPENSE TABLE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | $ 22,071 | $ 17,571 | $ 16,425 |
Total Tax Benefit Recognized for Equity-Based Compensation Expense | 2,329 | 5,512 | 8,673 |
Restricted Stock Units (RSUs) [Member] | Cost of Services | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | 9,766 | 7,175 | 6,099 |
Restricted Stock Units (RSUs) [Member] | Selling General And Administrative Expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Equity-based compensation expense | $ 12,305 | $ 10,396 | $ 10,326 |
EMPLOYEE COMPENSATION PLANS (NA
EMPLOYEE COMPENSATION PLANS (NARRATIVE) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 29, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2024 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 75% | ||||
Company Match on US Defined Contribution Plans | $ 11,600 | $ 12,200 | $ 10,800 | ||
Share-based Compensation Award Vesting Period | 1 year | ||||
Equity-based compensation expense | $ 22,071 | 17,571 | 16,425 | ||
Total Tax Benefit Recognized for Equity-Based Compensation Expense | $ 2,329 | $ 5,512 | $ 8,673 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value | $ 33.34 | ||||
Intrinsic Value of Non-Vested RSUs | $ 34,800 | ||||
2019 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | During 2019, the Company awarded performance restricted stock units (“PRSUs”) that were subject to service and performance vesting conditions. If defined minimum targets were met, the annual value of the PRSUs issued would be between $0.4 million and $1.4 million and vest immediately. If the defined minimum targets were not met, then no shares would be issued. The award amounts were based on the Company’s annual adjusted operating income for the fiscal years 2019, 2020 and 2021. Each fiscal year’s adjusted operating income determined the award amount. | ||||
2021 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | During 2021, the Company awarded PRSUs that are subject to service and performance vesting conditions. If defined minimum targets are met, the annual value of the PRSUs issued will be between $1.2 million and $4.9 million and vest immediately in 2024. If the defined minimum targets are not met, then no shares will be issued. The number of shares that will be awarded will be based on the Company's annual revenue and adjusted operating income for the fiscal year 2023. The Company recognized compensation expense related to the 2021 PRSUs of $0.7 million for the year ended December 31, 2023. | ||||
2020 Plan [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Shares Available for Issuance under Current Equity Compensation Plan | 4 | ||||
2024 Plan [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Shares Available for Issuance under Current Equity Compensation Plan | 4.5 | ||||
Minimum | 2020 Plan [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share-based Compensation Award Vesting Period | 3 years | ||||
Maximum | 2020 Plan [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share-based Compensation Award Vesting Period | 5 years | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Unrecognized Compensation Expense | $ 36,600 | ||||
Requisite Service Period | 1 year 8 months 12 days | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value | $ 33.34 | $ 65.36 | $ 96.47 | ||
Intrinsic Value of RSUs Vested | $ 17,700 | $ 18,400 | $ 14,200 | ||
Restricted Stock Units (RSUs) [Member] | Cost of Services | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Equity-based compensation expense | 9,766 | 7,175 | 6,099 | ||
Restricted Stock Units (RSUs) [Member] | Selling General And Administrative Expenses [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Equity-based compensation expense | 12,305 | 10,396 | 10,326 | ||
Performance Shares [Member] | 2019 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Equity-based compensation expense | $ 1,100 | 1,100 | |||
Performance Shares [Member] | 2020 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | During 2020, the Company awarded PRSUs that are subject to service and performance vesting conditions. If defined minimum targets are met, the annual value of the PRSUs issued will be between $0.2 million and $2.0 million and vest immediately. If the defined minimum targets are not met, then no shares will be issued. The number of shares awarded are based on the Company’s annual revenue and adjusted operating income for the fiscal years 2021 and 2022. Each fiscal year’s revenue and adjusted operating income will determine the award amount. The Company recognized compensation expense related to the 2020 PRSUs of $1.2 million and $1.6 million for the year ended December 31, 2022 and 2021, respectively. | ||||
Performance Shares [Member] | 2022 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | two different PRSU programs that are subject to service and performance vesting conditions: ordinary course annual PRSUs and one-time stretch financial goals PRSUs. For the ordinary course annual PRSUs, if defined minimum targets are met, the annual value of the PRSUs issued will be between $0.9 million and $3.5 million and vest immediately in March 2025. If the defined minimum targets are not met, then no shares will be issued. The number of shares that will be awarded will be based on the Company’s annual revenue and adjusted EBITDA for the fiscal year 2024. For the one-time stretch financial goals PRSUs, if defined minimum targets at TTEC Engage and TTEC Digital business segments’ levels are met, the number of shares of PRSUs issued will be between 0.0 million shares and 0.5 million shares and will vest immediately in March 2026. If the defined minimum targets are not met, then no shares will be issued. The number of shares to be awarded will be based on the TTEC Engage and TTEC Digital business segments’ annual revenue and adjusted EBITDA for the fiscal year 2025 | ||||
Performance Shares [Member] | Minimum | 2019 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Equity-based compensation expense | 400 | ||||
Performance Shares [Member] | Minimum | 2020 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Equity-based compensation expense | 200 | ||||
Performance Shares [Member] | Minimum | 2021 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Equity-based compensation expense | $ 1,200 | ||||
Performance Shares [Member] | Minimum | 2022 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Unrecognized Compensation Expense | $ 900 | ||||
Non-option Equity Awards Granted | 0 | ||||
Performance Shares [Member] | Maximum | 2019 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Equity-based compensation expense | $ 1,400 | ||||
Performance Shares [Member] | Maximum | 2020 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Equity-based compensation expense | $ 2,000 | ||||
Performance Shares [Member] | Maximum | 2021 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Equity-based compensation expense | $ 4,900 | ||||
Performance Shares [Member] | Maximum | 2022 PRSUs [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Unrecognized Compensation Expense | $ 3,500 | ||||
Non-option Equity Awards Granted | 0.5 |
STOCK REPURCHASE PROGRAM (NARRA
STOCK REPURCHASE PROGRAM (NARRATIVE) (Details) shares in Millions, $ in Millions | 266 Months Ended |
Dec. 31, 2023 USD ($) shares | |
STOCK REPURCHASE PROGRAM [ABSTRACT] | |
Cumulative Authorized Share Repurchase Allowance | $ 762.3 |
Treasury Stock Purchases, Shares | shares | 46.1 |
Cost of Treasury Stock Purchases | $ 735.8 |
Remaining Allowance Stock Repurchase Program | $ 26.6 |
Purchases of common stock, share | shares | 46.1 |
Purchases of common stock, value | $ 735.8 |
RELATED PARTY TRANSACTIONS (NAR
RELATED PARTY TRANSACTIONS (NARRATIVE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction Line Items | |||
Accounts payable, current, total | $ 96,577 | $ 93,937 | |
Sales Revenue Services Net | 2,462,817 | 2,443,707 | $ 2,273,062 |
Affiliated Entity | Avion and Airmax [Member] | |||
Related Party Transaction Line Items | |||
Purchases from Related Party | 1,000 | 500 | 600 |
Accounts payable, current, total | 218 | ||
Affiliated Entity | Welltok | |||
Related Party Transaction Line Items | |||
Sales Revenue Services Net | 500 | $ 1,500 | |
Affiliated Entity | Willis Towers Watson [Member] | |||
Related Party Transaction Line Items | |||
Purchases from Related Party | $ 3,800 | $ 2,900 | |
Chief Executive Officer | Avion and Airmax [Member] | Avion and Airmax [Member] | |||
Related Party Transaction Line Items | |||
Equity Method Investment, Ownership Percentage | 100% |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 8,428 | $ 103,240 | $ 140,970 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |