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 Company primarily utilizes its Credit Agreement to fund working capital, general operations, stock repurchases, dividends, and other strategic activities, such as the acquisitions described in Note 2. As of December 31, 2018, and 2017, the Company had borrowings of $282.0 million and $344.0 million, respectively, under its Credit Agreement, and its average daily utilization was $514.7 million and $494.7 million for the years ended December 31, 2018 and 2017, respectively. Based on the current level of availability based on the covenant calculations, the Company’s remaining borrowing capacity was approximately $360.0 million as of December 31, 2018. As of December 31, 2018, the Company was in compliance with all covenants and conditions under its Credit Agreement.

 

(13)DEFERRED REVENUE AND COSTS

 

Deferred revenue in the accompanying Consolidated Balance Sheets consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2018

    

2017

 

Deferred Revenue - Current

 

$

44,926

 

$

21,650

 

Deferred Revenue - Long-term

 

 

33,247

 

 

9,632

 

Total Deferred Revenue

 

$

78,173

 

$

31,282

 

 

Deferred costs in the accompanying Consolidated Balance Sheets consist of the following (in thousands):

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2018

    

2017

 

Deferred Costs - Current

 

$

23,539

 

$

13,649

 

Deferred Costs - Long-term

 

 

34,042

 

 

9,654

 

Total Deferred Costs

 

$

57,581

 

$

23,303

 

 

Activity in the Company’s Deferred revenue accounts consists of the following (in thousands):

 

 

 

 

 

 

Balance as of December 31, 2017

 

$

31,282

 

Additions

 

 

155,096

 

Amortization

 

 

(108,205)

 

Balance as of December 31, 2018

 

$

78,173

 

 

 

 

(14)COMMITMENTS AND CONTINGENCIES

Letters of Credit

As of December 31, 2018, outstanding letters of credit under the Credit Agreement totaled $3.1 million and primarily guaranteed workers’ compensation and other insurance related obligations. As of December 31, 2018, letters of credit and contract performance guarantees issued outside of the Credit Agreement totaled $0.6 million.

Guarantees

Indebtedness under the Credit Agreement is guaranteed by certain of the Company’s present and future domestic subsidiaries.

Legal Proceedings

From time to time, the Company has been involved in legal actions, both as plaintiff and defendant, which arise in the ordinary course of business. The Company accrues for exposures associated with such legal actions to the extent that losses are deemed both probable and reasonably estimable. To the extent specific reserves have not been made for certain legal proceedings, their ultimate outcome, and consequently, an estimate of possible loss, if any, cannot reasonably be determined at this time.

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