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

 

 

(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,

 

 

 

2017

 

Amortization

 

Impairments

 

Adjustments

 

Currency

 

2018

 

Customer relationships, gross

 

$

127,431

 

$

 —

 

$

 —

 

$

1,956

 

$

(5,860)

 

$

123,527

 

Customer relationships - accumulated amortization

 

 

(35,217)

 

 

(10,546)

 

 

 —

 

 

1,203

 

 

1,337

 

 

(43,223)

 

Other intangible assets, gross

 

 

4,784

 

 

 —

 

 

 —

 

 

 —

 

 

(209)

 

 

4,575

 

Other intangible assets - accumulated amortization

 

 

(3,913)

 

 

(212)

 

 

 —

 

 

 —

 

 

157

 

 

(3,968)

 

Other intangible assets, net

 

$

93,085

 

$

(10,758)

 

$

 —

 

$

3,159

 

$

(4,575)

 

$

80,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

    

 

    

Acquisitions

    

Effect of

    

 

 

 

 

 

December 31,

 

 

 

 

 

and

 

Foreign

 

December 31,

 

 

 

2016

 

Amortization

 

Impairments

 

Adjustments

 

Currency

 

2017

 

Customer relationships, gross

 

$

53,402

 

$

 —

 

$

(6,120)

 

$

78,320

 

$

1,829

 

$

127,431

 

Customer relationships - accumulated amortization

 

 

(27,810)

 

 

(7,213)

 

 

3,230

 

 

(3,230)

 

 

(194)

 

 

(35,217)

 

Other intangible assets, gross

 

 

4,589

 

 

 —

 

 

(3,701)

 

 

3,852

 

 

44

 

 

4,784

 

Other intangible assets - accumulated amortization

 

 

(3,978)

 

 

(254)

 

 

2,930

 

 

(2,929)

 

 

318

 

 

(3,913)

 

Trade name - indefinite life

 

 

5,665

 

 

 —

 

 

(5,322)

 

 

 —

 

 

(343)

 

 

 —

 

Other intangible assets, net

 

$

31,868

 

$

(7,467)

 

$

(8,983)

 

$

76,013

 

$

1,654

 

$

93,085

 

 

The acquisitions and adjustments recorded during 2018 relate to the purchase of SCS (see Note 2 for further information) and the fair value of the CSS-PRG balance sheet (see below).

The acquisitions and adjustments recorded during 2017 relate to the purchase of Connextions and Motif (see Note 2 for further information) and the impairment of intangible assets during the fourth quarter of 2017 (see below).

CTS - eLoyalty

During the fourth quarter of 2017 in connection with the rebranding of the consolidated company, management determined that it would no longer be using the name of eLoyalty and would be transitioning to TTEC Digital. Based on this change in branding strategy, an evaluation of the indefinite-lived trade name was completed and it was determined that the fair value of the asset was zero. The Company recorded an impairment expense of $3.3 million in the three months ended December 31, 2017 which was included in Impairment losses in the Consolidated Statements of Comprehensive Income (Loss).

CSS - PRG

During the fourth quarter of 2017 in connection with the rebranding of the consolidated company and the full integration of the CSS segment, management determined that it will no longer be using the name of PRG and would be transitioning all CSS entities to TTEC Consulting. Based on this change in branding strategy, an evaluation of the indefinite-lived trade name was completed and it was determined that the fair value of the asset was zero. The Company recorded impairment expense of $2.0 million in the three months ended December 31, 2017 which was included in Impairment losses in the Consolidated Statements of Comprehensive Income (Loss).

As of December 31, 2018, in connection with reclassifying a business unit from assets held for sale to assets held and used, a fair value assessment was completed and it was determined that due to continuing estimated losses, the fair value of the customer relationship balance was zero. The Company recorded a $0.7 million fair value adjustment during the fourth quarter of 2018 which was included in Other income (expense), net in the Consolidated Statements of Comprehensive Income (Loss).

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