10-K
TTEC HOLDINGS, INC. filed this Form 10-K on 03/06/2019
Entire Document
 

Obligations and Future Capital Requirements

Future maturities of our outstanding debt and contractual obligations as of December 31, 2018 are summarized as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Less than

    

1 to 3

    

3 to 5

    

Over 5

    

 

 

 

 

 

1 Year

 

Years

 

Years

 

Years

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Facility(1)

 

$

11,641

 

$

295,581

 

$

 —

 

$

 —

 

$

307,222

 

Equipment financing arrangements

 

 

8,035

 

 

8,922

 

 

1,648

 

 

 —

 

 

18,605

 

Contingent consideration

 

 

 —

 

 

2,553

 

 

 —

 

 

 —

 

 

2,553

 

Purchase obligations

 

 

14,446

 

 

7,970

 

 

1,064

 

 

 —

 

 

23,480

 

Operating lease commitments

 

 

47,379

 

 

66,723

 

 

43,810

 

 

25,362

 

 

183,274

 

Transition tax related to US 2017 Tax Act

 

 

3,300

 

 

6,700

 

 

14,600

 

 

9,318

 

 

33,918

 

Other debt

 

 

2,336

 

 

39,293

 

 

17

 

 

 —

 

 

41,646

 

Total

 

$

87,137

 

$

427,742

 

$

61,139

 

$

34,680

 

$

610,698

 

 


(1)

Includes estimated interest payments based on the weighted-average interest rate, unused commitment fees, current interest rate swap arrangements, and outstanding debt as of December 31, 2018.  

 

·

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

·

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

·

The contractual obligation table excludes our liabilities of $6.2 million related to uncertain tax positions because we cannot reliably estimate the timing of future cash payments. See Part II, Item 8. Financial Statements and Supplementary Data, Note 10 to the Consolidated Financial Statements for further discussion.

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

Purchase Obligations

Occasionally we contract with certain of our communications clients to provide us with telecommunication services. These clients currently represent approximately 12% of our total annual revenue. We believe these contracts are negotiated on an arm’s-length basis and may be negotiated at different times and with different legal entities.

Future Capital Requirements

We expect total capital expenditures in 2019 to be between $60 and $65 million. Approximately 65% of these expected capital expenditures are to support growth in our business and 35% relate to the maintenance of existing assets. The anticipated level of 2019 capital expenditures is primarily driven by new client contracts and the corresponding requirements for additional customer engagement center capacity as well as enhancements to our technological infrastructure.

We may consider restructurings, dispositions, mergers, acquisitions and other similar transactions. Such transactions could include the transfer, sale or acquisition of significant assets, businesses or interests, including joint ventures or the incurrence, assumption, or refinancing of indebtedness and could be material to the consolidated financial condition and consolidated results of our operations. Our capital expenditures requirements could also increase materially in the event of an acquisition or joint ventures. In addition, as of December 31, 2018, we were authorized to purchase an additional $26.6 million of common stock under our stock repurchase program (see Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities). Our stock repurchase program does not have an expiration date.

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