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

Table of Contents

TTEC HOLDINGS, INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the Company’s consolidated income statement and balance sheet was as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended  December 31, 2018

 

 

    

 

    

Balances

    

 

 

 

 

 

 

Without

 

 

 

 

 

 

 

Adoption of

 

Effect of Change

 

 

 

As reported

 

ASC 606

 

Higher/(Lower)

 

Statements of Comprehensive Income

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,509,171

 

$

1,500,171

 

$

9,000

 

Cost of services

 

 

1,157,927

 

 

1,153,299

 

 

4,628

 

Provision for income taxes

 

 

16,483

 

 

15,215

 

 

1,268

 

Net income

 

$

39,755

 

$

36,651

 

$

3,104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2018

 

 

    

 

    

Balances

    

 

 

 

 

 

 

Without

 

 

 

 

 

 

 

Adoption of

 

Effect of Change

 

 

 

As reported

 

ASC 606

 

Higher/(Lower)

 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

Prepaids and other current assets

 

$

88,487

 

$

82,319

 

$

6,168

 

Deferred tax assets

 

 

15,523

 

 

12,708

 

 

2,815

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Deferred revenue

 

$

44,926

 

$

29,140

 

$

15,786

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

Retained earnings

 

$

725,551

 

$

732,354

 

$

(6,803)

 

 

Other Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, “Leases”, which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases and making targeted changes to lessor accounting. The ASU also requires new disclosures regarding the amounts, timing, and uncertainty of cash flows arising from leases. The ASU is effective for interim and annual periods beginning on or after December 15, 2018 and early adoption is permitted. The Company assigned a project manager, completed the assessment phase, has selected a software solution and other tracking methods, loaded and validated all data into the tool, and has finalized its implementation approach.

The Company has evaluated the adoption impact of the accounting guidance on its Consolidated Financial Statements. The new guidance will primarily impact the balance sheet by establishing a right to use asset and corresponding lease liability in our consolidated balance sheet for those leases that were previously classified as operating leases.

The new leasing standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company has elected the following in its transition and implementation approach:

1.

As a result of the targeted improvements issued in July 2018, the Company has elected the effective date as the date of initial application (i.e. January 1, 2019). The election allows the Company to recognize the effects of the implementation of ASC 842 as a cumulative effect adjustment to the opening balance of retained earnings (or other components of equity or net assets, as appropriate), in the period of adoption. There is no restatement of comparative periods under this approach.

F-17