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

The following is a summary of the Company’s fair value measurements as of December 31, 2018 and 2017 (in thousands):

 

As of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

    

Quoted Prices in

    

 

 

    

Significant

 

 

 

Active Markets for

 

Significant Other

 

Unobservable

 

 

 

Identical Assets

 

Observable Inputs

 

Inputs

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

Derivative instruments, net

 

$

 

$

 

$

 

Total assets

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Deferred compensation plan liability

 

$

 

$

(14,836)

 

$

 

Derivative instruments, net

 

 

 

 

(11,360)

 

 

 

Contingent consideration

 

 

 

 

 —

 

 

(2,363)

 

Total liabilities

 

$

 —

 

$

(26,196)

 

$

(2,363)

 

 

As of December 31, 2017 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

    

Quoted Prices in

    

 

 

    

Significant

 

 

 

Active Markets for

 

Significant Other

 

Unobservable

 

 

 

Identical Assets

 

Observable Inputs

 

Inputs

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

Derivative instruments, net

 

$

 

$

 

$

 

Total assets

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Deferred compensation plan liability

 

$

 

$

(13,219)

 

$

 

Derivative instruments, net

 

 

 

 

(24,786)

 

 

 

Contingent consideration

 

 

 

 

 

 

(399)

 

Total liabilities

 

$

 —

 

$

(38,005)

 

$

(399)

 

 

Deferred Compensation Plan -  The Company maintains a non-qualified deferred compensation plan structured as a Rabbi trust for certain eligible employees. Participants in the deferred compensation plan select from a menu of phantom investment options for their deferral dollars offered by the Company each year, which are based upon changes in value of complementary, defined market investments. The deferred compensation liability represents the combined values of market investments against which participant accounts are tracked.

Contingent Consideration — The Company recorded contingent consideration related to the acquisition of SCS. This contingent payable was recognized at fair  value using a discounted cash flow approach and a discount rate of 4.7%. The measurements were based on significant inputs not observable in the market. The Company recorded interest expense each period using the effective interest method until the future value of these contingent payables reached their expected future value. Interest expense related to all recorded contingent payables is included in Interest expense in the Consolidated Statements of Comprehensive Income (Loss).

The Company recorded contingent consideration related to a revenue servicing agreement with Welltok in the fourth quarter of 2016, in which a maximum of $1.25 million would be paid over eight quarters based on the dollar value of revenue earned by the Company. The contingent payable was recognized at fair value of $1.25 million as of December 31, 2016. Payments totaling $851 thousand were completed during 2017 and the final payment of $399 thousand was made during the first quarter of 2018. 

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