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

Customer relationships are being amortized over the remaining weighted average useful life of 8.2 years and other intangible assets are being amortized over the remaining weighted average useful life of 4.6 years. Amortization expense related to intangible assets was $10.8 million, $7.5 million and $9.5 million for the years ended December 31, 2018,  2017 and 2016, respectively.

Expected future amortization of other intangible assets as of December 31, 2018 is as follows (in thousands):

 

 

 

 

 

2019

    

$

10,557

2020

 

 

9,341

2021

 

 

8,840

2022

 

 

8,156

2023

 

 

7,619

Thereafter

 

 

36,398

Total

 

$

80,911

 

 

 

(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 consider, among other factors, the creditworthiness of these counterparties. Conversely, the fair value of derivative liabilities reflects the Company’s creditworthiness. As of December 31, 2018, 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, 2018,  2017 and 2016 (in thousands and net of tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

2018

    

2017

    

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Aggregate unrealized net gain/(loss) at beginning of period

 

 

$

(15,746)

 

$

(32,393)

 

$

(26,885)

 

Add: Net gain/(loss) from change in fair value of cash flow hedges

 

 

 

20,278

 

 

31,053

 

 

11,242

 

Less: Net (gain)/loss reclassified to earnings from effective hedges

 

 

 

(12,810)

 

 

(14,406)

 

 

(16,750)

 

Aggregate unrealized net gain/(loss) at end of period

 

 

$

(8,278)

 

$

(15,746)

 

$

(32,393)

 

 

The Company’s foreign exchange cash flow hedging instruments as of December 31, 2018 and 2017 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, 2018

 

Amount

 

Amount

 

 

12 months

 

 

Through

 

Philippine Peso

 

6,710,000

 

 

130,957

(1)  

 

60.7

%  

 

December 2021

 

Mexican Peso

 

1,091,500

 

 

57,708

 

 

53.0

%  

 

December 2021

 

 

 

 

 

$

188,665

 

 

 

 

 

 

 

 

F-31