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

A summary of the expenses recorded for restructuring and included in Restructuring and integration charges, net in the accompanying Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2018,  2017 and 2016, respectively, is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

    

2018

    

2017

    

2016

 

Reduction in force

 

 

 

 

 

 

 

 

 

 

 

Customer Management Services

 

 

$

694

 

$

1,012

 

$

2,837

 

Customer Growth Services

 

 

 

 —

 

 

 —

 

 

147

 

Customer Technology Services

 

 

 

 —

 

 

94

 

 

324

 

Customer Strategy Services

 

 

 

133

 

 

55

 

 

92

 

Total

 

 

$

827

 

$

1,161

 

$

3,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

    

2018

    

2017

    

2016

 

Facility exit and other charges

 

 

 

 

 

 

 

 

 

 

 

Customer Management Services

 

 

$

3,550

 

$

2,050

 

$

959

 

Customer Growth Services

 

 

 

1,754

 

 

 

 

 

Customer Technology Services

 

 

 

 —

 

 

84

 

 

33

 

Customer Strategy Services

 

 

 

 —

 

 

85

 

 

 

Total

 

 

$

5,304

 

$

2,219

 

$

992

 

 

A rollforward of the activity in the Company’s restructuring accruals for the years ended December 31, 2018 and 2017, respectively, is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reduction

 

Facility Exit and

 

 

 

 

 

 

in Force

 

Other Charges

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2016

 

$

1,468

 

$

98

 

$

1,566

 

Expense

 

 

1,316

 

 

2,219

 

 

3,535

 

Payments

 

 

(1,892)

 

 

(908)

 

 

(2,800)

 

Changes due to foreign currency

 

 

(43)

 

 

 —

 

 

(43)

 

Changes in estimates

 

 

(155)

 

 

 —

 

 

(155)

 

Balance as of December 31, 2017

 

 

694

 

 

1,409

 

 

2,103

 

Expense

 

 

1,021

 

 

5,303

 

 

6,324

 

Payments

 

 

(937)

 

 

(3,480)

 

 

(4,417)

 

Changes due to foreign currency

 

 

(169)

 

 

(6)

 

 

(175)

 

Changes in estimates

 

 

(193)

 

 

 —

 

 

(193)

 

Balance as of December 31, 2018

 

$

416

 

$

3,226

 

$

3,642

 

 

The remaining restructuring accruals are expected to be paid or extinguished during 2019 and are all classified as current liabilities within Other accrued expenses in the Consolidated Balance Sheets.

Integration Charges

During the third and fourth quarters of 2017, as a result of the Connextions acquisition, certain integration activities were completed and $5.6 million and $3.9 million of additional expenses were incurred and paid, respectively. These integration activities included the hiring, training and licensing of a group of employees at new delivery centers as one of the acquired centers was closed during the third quarter of 2017 and one of the acquired centers was closed during the fourth quarter of 2017. In connection with these center closures, leasehold improvements of $3.5 million were written off as a related integration expense. The Company has also incurred significant expenses related to the integration of the IT systems and has paid duplicative software costs and facilities expenses for several areas during the transition period.

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