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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Local

    

 

 

    

 

 

    

 

 

 

 

 

Currency

 

U.S. Dollar

 

 

 

 

 

     

 

 

 

Notional

 

Notional

 

 

      

 

 

 

 

As of December 31, 2017

 

Amount

 

Amount

 

 

 

 

 

 

 

Philippine Peso

 

10,685,000

 

 

219,917

(1)  

 

 

 

 

 

 

Mexican Peso

 

1,609,000

 

 

93,589

 

 

 

 

 

 

 

 

 

 

 

$

313,506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(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, 2018 and December 31, 2017.

 

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, 2018 and 2017, the total notional amount of the Company’s forward contracts used as fair value hedges was $70.4 million and $176.2 million, respectively.

Derivative Valuation and Settlements

The Company’s derivatives as of December 31, 2018 and 2017 were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

Designated

 

Not Designated

 

 

 

as Hedging

 

as Hedging

 

Designation:

 

Instruments

 

Instruments

 

 

    

Foreign

    

Interest

    

Foreign

 

Derivative contract type:

 

Exchange

 

Rate

 

Exchange

 

Derivative classification:

 

Cash Flow

 

Cash Flow

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Fair value and location of derivative in the Consolidated Balance Sheet:

 

 

 

 

 

 

 

 

 

 

Prepaids and other current assets

 

$

814

 

$

 —

 

$

60

 

Other long-term assets

 

 

215

 

 

 —

 

 

 —

 

Other current liabilities

 

 

(8,861)

 

 

 —

 

 

(104)

 

Other long-term liabilities

 

 

(3,484)

 

 

 —

 

 

 —

 

Total fair value of derivatives, net

 

$

(11,316)

 

$

 —

 

$

(44)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

Designated

 

Not Designated

 

 

 

as Hedging

 

as Hedging

 

Designation:

 

Instruments

 

Instruments

 

 

    

Foreign

    

Interest

    

Foreign

 

Derivative contract type:

 

Exchange

 

Rate

 

Exchange

 

Derivative classification:

 

Cash Flow

 

Cash Flow

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Fair value and location of derivative in the Consolidated Balance Sheet:

 

 

 

 

 

 

 

 

 

 

Prepaids and other current assets

 

$

220

 

$

 

$

1,603

 

Other long-term assets

 

 

393

 

 

 

 

 

Other current liabilities

 

 

(15,603)

 

 

 —

 

 

(133)

 

Other long-term liabilities

 

 

(11,266)

 

 

 —

 

 

 

Total fair value of derivatives, net

 

$

(26,256)

 

$

 —

 

$

1,470

 

 

F-32