10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2016

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                                    to                                                      

Commission File No.          0-28274

Sykes Enterprises, Incorporated

(Exact name of Registrant as specified in its charter)

Florida	56-1383460
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

400 North Ashley Drive, Suite 2800, Tampa, FL     33602

(Address of principal executive offices)    (Zip Code)

Registrant’s telephone number, including area code:  (813) 274-1000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days.

Yes  x                     No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  x                    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer    x                    Accelerated filer    ¨                    Non-accelerated filer    ¨                    Smaller reporting company    ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ¨                     No  x

As of July 22, 2016, there were 43,042,835 outstanding shares of common stock.

Sykes Enterprises, Incorporated and Subsidiaries

Form 10-Q

INDEX

PART I.  FINANCIAL INFORMATION		3
Item 1.  Financial Statements		3
	Condensed Consolidated Balance Sheets – June 30, 2016 and December 31, 2015 (Unaudited)	3
	Condensed Consolidated Statements of Operations – Three and Six Months Ended June 30, 2016 and 2015 (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) – Three and Six Months Ended June 30, 2016 and 2015 (Unaudited)	5
	Condensed Consolidated Statements of Changes in Shareholders’ Equity – Six Months Ended June 30, 2016 (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2016 and 2015 (Unaudited)	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	9
Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations		43
Item 3.   Quantitative and Qualitative Disclosures About Market Risk		55
Item 4.  Controls and Procedures		56
Part II.  OTHER INFORMATION		57
Item 1.  Legal Proceedings		57
Item 1A.  Risk Factors		57
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds		57
Item 3.  Defaults Upon Senior Securities		57
Item 4.  Mine Safety Disclosures		57
Item 5.  Other Information		57
Item 6.  Exhibits		58
SIGNATURE		59

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PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

Sykes Enterprises, Incorporated and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except per share data)	June 30, 2016		December 31, 2015
Assets
Current assets:
Cash and cash equivalents	$	273,214	$	235,358
Receivables, net		296,446		277,096
Prepaid expenses		21,735		17,321
Other current assets		14,091		33,262
Total current assets		605,486		563,037
Property and equipment, net		138,230		111,962
Goodwill, net		268,149		195,733
Intangibles, net		163,916		50,896
Deferred charges and other assets		43,210		26,144
	$	1,218,991	$	947,772
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	25,951	$	23,255
Accrued employee compensation and benefits		91,981		77,246
Current deferred income tax liabilities		-		1,120
Income taxes payable		1,350		1,959
Deferred revenue		37,681		28,119
Other accrued expenses and current liabilities		33,162		21,476
Total current liabilities		190,125		153,175
Deferred grants		4,475		4,810
Long-term debt		272,000		70,000
Long-term income tax liabilities		19,721		18,512
Other long-term liabilities		23,776		22,595
Total liabilities		510,097		269,092
Commitments and loss contingency (Note 14)
Shareholders’ equity:
Preferred stock, $0.01 par value per share, 10,000 shares authorized; no shares issued and outstanding		-		-
Common stock, $0.01 par value per share, 200,000 shares authorized; 43,043 and 42,785 shares issued, respectively		430		428
Additional paid-in capital		278,395		275,380
Retained earnings		481,417		458,325
Accumulated other comprehensive income (loss)		(49,414)		(53,662)
Treasury stock at cost: 117 and 113 shares, respectively		(1,934)		(1,791)
Total shareholders’ equity		708,894		678,680
	$	1,218,991	$	947,772

See accompanying Notes to Condensed Consolidated Financial Statements.

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Sykes Enterprises, Incorporated and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	2016		2015		2016		2015
Revenues	$	364,402	$	307,453	$	685,148	$	631,138
Operating expenses:
Direct salaries and related costs		239,442		202,143		444,997		416,070
General and administrative		94,335		72,651		174,845		145,378
Depreciation, net		11,960		11,007		22,744		22,066
Amortization of intangibles		5,263		3,435		8,890		6,866
Total operating expenses		351,000		289,236		651,476		590,380
Income from operations		13,402		18,217		33,672		40,758
Other income (expense):
Interest income		141		151		294		317
Interest (expense)		(1,581)		(610)		(2,389)		(1,049)
Other income (expense)		1,067		(167)		1,620		(996)
Total other income (expense)		(373)		(626)		(475)		(1,728)
Income before income taxes		13,029		17,591		33,197		39,030
Income taxes		3,891		4,679		10,105		10,479
Net income	$	9,138	$	12,912	$	23,092	$	28,551
Net income per common share:
Basic	$	0.22	$	0.31	$	0.55	$	0.68
Diluted	$	0.22	$	0.31	$	0.55	$	0.67
Weighted average common shares outstanding:
Basic		41,970		42,008		41,838		42,095
Diluted		42,101		42,216		42,101		42,328

See accompanying Notes to Condensed Consolidated Financial Statements.

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Sykes Enterprises, Incorporated and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2016		2015		2016		2015
Net income	$	9,138	$	12,912	$	23,092	$	28,551
Other comprehensive income (loss), net of taxes:
Foreign currency translation gain (loss), net of taxes		(9,599)		7,058		4,300		(20,066)
Unrealized gain (loss) on net investment hedges, net of taxes		1,497		(1,135)		(433)		2,768
Unrealized actuarial gain (loss) related to pension liability, net of taxes		(35)		(20)		(26)		(28)
Unrealized gain (loss) on cash flow hedging instruments, net of taxes		(1,996)		(347)		434		1,068
Unrealized gain (loss) on postretirement obligation, net of taxes		(14)		59		(27)		44
Other comprehensive income (loss), net of taxes		(10,147)		5,615		4,248		(16,214)
Comprehensive income (loss)	$	(1,009)	$	18,527	$	27,340	$	12,337

See accompanying Notes to Condensed Consolidated Financial Statements.

5

Sykes Enterprises, Incorporated and Subsidiaries

Condensed Consolidated Statements of Changes in Shareholders’ Equity

Six Months Ended June 30, 2016

(Unaudited)

									Accumulated
	Common Stock								Other
	Shares				Additional		Retained		Comprehensive		Treasury
(in thousands)	Issued		Amount		Paid-in Capital		Earnings		Income (Loss)		Stock		Total
Balance at December 31, 2015		42,785	$	428	$	275,380	$	458,325	$	(53,662)	$	(1,791)	$	678,680
Stock-based compensation expense		-		-		5,729		-		-		-		5,729
Excess tax benefit (deficiency) from stock-based compensation		-		-		2,060		-		-		-		2,060
Issuance of common stock under equity award plans, net of shares withheld for employee taxes		258		2		(4,774)		-		-		(143)		(4,915)
Comprehensive income (loss)		-		-		-		23,092		4,248		-		27,340
Balance at June 30, 2016		43,043	$	430	$	278,395	$	481,417	$	(49,414)	$	(1,934)	$	708,894

See accompanying Notes to Condensed Consolidated Financial Statements.

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Sykes Enterprises, Incorporated and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(in thousands)	2016		2015
Cash flows from operating activities:
Net income	$	23,092	$	28,551
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		23,059		22,458
Amortization of intangibles		8,890		6,866
Amortization of deferred grants		(444)		(441)
Unrealized foreign currency transaction (gains) losses, net		(2,316)		(1,093)
Stock-based compensation expense		5,729		3,284
Excess tax (benefit) from stock-based compensation		(2,060)		(169)
Deferred income tax provision (benefit)		(2,219)		3,127
Unrealized (gains) losses on financial instruments, net		611		88
Amortization of deferred loan fees		134		269
Imputed interest expense and fair value adjustments to contingent consideration		509		-
Other		(166)		(87)
Changes in assets and liabilities, net of acquisition:
Receivables		(1,581)		13,029
Prepaid expenses		(2,952)		(1,212)
Other current assets		(2,316)		(11,895)
Deferred charges and other assets		(1,509)		1,753
Accounts payable		(3,145)		(3,487)
Income taxes receivable / payable		273		(3,992)
Accrued employee compensation and benefits		12,896		363
Other accrued expenses and current liabilities		3,009		1,777
Deferred revenue		3,623		(2,341)
Other long-term liabilities		1,501		256
Net cash provided by operating activities		64,618		57,104
Cash flows from investing activities:
Capital expenditures		(34,409)		(19,476)
Cash paid for business acquisition, net of cash acquired		(205,324)		-
Proceeds from sale of property and equipment		37		53
Investment in restricted cash		(228)		(5)
Release of restricted cash		77		-
Proceeds from property and equipment insurance settlement		-		500
Net investment hedge settlement		10,339		-
Net cash (used for) investing activities		(229,508)		(18,928)

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Sykes Enterprises, Incorporated and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Continued)

	Six Months Ended June 30,
(in thousands)	2016		2015
Cash flows from financing activities:
Payments of long-term debt		(14,000)		(10,000)
Proceeds from issuance of long-term debt		216,000		-
Excess tax benefit from stock-based compensation		2,060		169
Cash paid for repurchase of common stock		-		(11,969)
Proceeds from grants		89		472
Shares repurchased for minimum tax withholding on equity awards		(4,915)		(1,269)
Cash paid for loan fees related to long-term debt		-		(962)
Net cash provided by (used for) financing activities		199,234		(23,559)
Effects of exchange rates on cash and cash equivalents		3,512		(7,404)
Net increase (decrease) in cash and cash equivalents		37,856		7,213
Cash and cash equivalents – beginning		235,358		215,137
Cash and cash equivalents – ending	$	273,214	$	222,350
Supplemental disclosures of cash flow information:
Cash paid during period for interest	$	1,497	$	735
Cash paid during period for income taxes	$	11,229	$	14,231
Non-cash transactions:
Property and equipment additions in accounts payable	$	6,990	$	4,324
Unrealized gain (loss) on postretirement obligation in accumulated other comprehensive income (loss)	$	(27)	$	44
Shares repurchased for minimum tax withholding on common stock and restricted stock under equity awards included in current liabilities	$	51	$	126

See accompanying Notes to Condensed Consolidated Financial Statements.

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Sykes Enterprises, Incorporated and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Six Months Ended June 30, 2016 and 2015

(Unaudited)

Note 1. Overview and Basis of Presentation

Business — Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) provides comprehensive outsourced customer contact management solutions and services in the business process outsourcing arena to companies, primarily within the communications, financial services, technology/consumer, transportation and leisure, and healthcare industries. SYKES provides flexible, high-quality outsourced customer contact management services (with an emphasis on inbound technical support, demand generation and customer service), which includes customer assistance, healthcare and roadside assistance, technical support, and product and service sales to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels encompassing phone, e-mail, social media, text messaging, chat and digital self-service. SYKES complements its outsourced customer contact management services with various enterprise support services in the United States that encompass services for a company’s internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services, which includes order processing, payment processing, inventory control, product delivery and product returns handling. The Company has operations in two reportable segments entitled (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, in which the client base is primarily companies in the United States that are using the Company’s services to support their customer management needs; and (2) EMEA, which includes Europe, the Middle East and Africa.

Acquisitions

On April 1, 2016, the Company completed the acquisition of Clear Link Holdings, LLC (“Clearlink”), pursuant to a definitive Agreement and Plan of Merger (the “Merger Agreement”), dated March 6, 2016. The Company has reflected the operating results in the Condensed Consolidated Statements of Operations since April 1, 2016. See Note 2, Acquisitions, for additional information on the acquisition.

In July 2015, the Company completed the acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”), pursuant to a definitive Share Sale and Purchase Agreement, dated July 2, 2015. The Company has reflected the operating results in the Condensed Consolidated Statements of Operations since July 2, 2015. See Note 2, Acquisitions, for additional information on the acquisition.

Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2016. For further information, refer to the consolidated financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the Securities and Exchange Commission (“SEC”) on February 29, 2016.

Principles of Consolidation — The condensed consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates — The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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Subsequent Events — Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. There were no material subsequent events that required recognition or disclosure in the accompanying condensed consolidated financial statements.

Customer-Acquisition Advertising Costs — The Company utilizes direct-response advertising the primary purpose of which is to elicit purchases from its clients’ customers. These costs are capitalized when they are expected to result in probable future benefits and are amortized over the period during which future benefits are expected to be received, which is generally less than one month. All other advertising costs are expensed as incurred. As of June 30, 2016, the Company had less than $0.1 million of capitalized direct-response advertising costs included in “Prepaid expenses” in the accompanying Condensed Consolidated Balance Sheet (none in 2015). Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Income Statements for both the three and six months ended June 30, 2016 were $8.0 million (none in 2015).

Reclassifications — Certain balances in the prior period have been reclassified to conform to current period presentation.

New Accounting Standards Not Yet Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The amendments in ASU 2014-09 outline a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and indicate that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date” (“ASU 2015-14”). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. An entity should apply the amendments using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company is currently evaluating the methods of adoption and the impact that the adoption of ASU 2014-09 may have on its financial condition, results of operations and cash flows.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). These amendments modify how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such, these investments may be measured at cost. These amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect the adoption of ASU 2016-01 to materially impact its financial condition, results of operations and cash flows.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840 “Leases”. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its financial condition, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815) – Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (“ASU 2016-05”). These amendments clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under

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Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. These amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Entities have the option to apply the amendments on either a prospective basis or a modified retrospective basis. The Company is evaluating the methods of adoption but does not expect the adoption of ASU 2016-05 to materially impact its financial condition, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU 2016-08”). These amendments clarify the implementation guidance on principal versus agent considerations and require entities to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing” (“ASU 2016-10”). These amendments clarify the identification of performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition and Derivatives and Hedging: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 Emerging Issues Task Force Meeting (“EITF”)” (“ASU 2016-11”). These rescissions include changes to topics pertaining to accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”). These amendments clarify the guidance in certain narrow areas and add several practical expedients. These ASUs affect the guidance in ASU 2014-09, which is not yet effective. The effective date and transition requirements for ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12 are the same as the effective date and transition requirements of ASU 2014-09, as updated by ASU 2015-14. The Company is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). These amendments are intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. These amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. Entities have the option to apply the amendments on either a prospective basis or a modified retrospective basis. The Company is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). These amendments require measurement and recognition of expected versus incurred credit losses for financial assets held. These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

New Accounting Standards Recently Adopted

In June 2014, the FASB issued ASU 2014-12, “Compensation – Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification (“ASC”) Topic 718, “Compensation — Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. These amendments, adopted prospectively, were effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The adoption of ASU 2014-12 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20) Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). The amendments eliminate from U.S. GAAP the concept of extraordinary items as part of the FASB’s initiative to reduce complexity in accounting standards. These amendments, adopted prospectively, were effective

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for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-01 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) Amendments to the Consolidation Analysis)” (“ASU 2015-02”). The amendments are intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. These amendments affect the consolidation evaluation for reporting organizations. In addition, the amendments simplify and improve current U.S. GAAP by reducing the number of consolidation models. These amendments, adopted retrospectively, were effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-02 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. These amendments were effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of ASU 2015-03 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). These amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. These amendments, adopted prospectively, were effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The adoption of ASU 2015-05 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). These amendments eliminate the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. These amendments, adopted prospectively, were effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The adoption of ASU 2015-16 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). These amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The existing requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by these amendments. These amendments, adopted prospectively, were effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of ASU 2015-17 on January 1, 2016 resulted in the reclassification of $12.0 million of current deferred tax assets included in “Other current assets” and $1.1 million of current deferred tax liabilities included in “Current deferred income tax liabilities” to noncurrent deferred income tax assets and liabilities. All future deferred tax assets and liabilities will be classified as noncurrent. No prior periods were adjusted.

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Note 2. Acquisitions

Clearlink

On April 1, 2016, the Company acquired 100% of the outstanding membership units of Clearlink through a merger of Clearlink with and into a subsidiary of the Company (the “Merger”). Clearlink, with its operations located in the United States, is an inbound demand generation and sales conversion platforms serving numerous Fortune 500 business-to-consumer and business-to-business clients across various industries and subsectors, including telecommunications, satellite television, home security and insurance. The results of Clearlink’s operations have been included in the Company’s consolidated financial statements since April 1, 2016 (the “Clearlink acquisition date”). The strategic acquisition of Clearlink expands the Company’s suite of service offerings while creating differentiation in the marketplace, broadening its addressable market opportunity and extending executive level reach within the Company’s existing clients’ organization. This resulted in the Company paying a substantial premium for Clearlink resulting in the recognition of goodwill. Pursuant to Federal income tax laws, intangible assets and goodwill from the Clearlink acquisition are deductible over a 15 year amortization period.

The Clearlink purchase price totaled $207.9 million, consisting of the following:

	Total
Cash (1)	$	209,186
Working capital adjustment		(1,278)
	$	207,908
(1) Funded through borrowings under the Company’s credit agreement. See Note 10, Borrowings, for more information.

Approximately $2.6 million of the purchase price was placed in an escrow account as security for the indemnification obligations of Clearlink’s members under the merger agreement.

The Company accounted for the Clearlink acquisition in accordance with ASC 805 (“ASC 805”) “Business Combinations”, whereby the purchase price paid was allocated to the tangible and identifiable intangibles acquired and liabilities assumed from Clearlink based on their estimated fair values as of the closing date. Certain amounts are provisional and are subject to change, including the finalization of the working capital adjustment, tax analysis of the assets acquired and liabilities assumed, intangibles and goodwill. The Company expects to complete its analysis of the purchase price allocation during the fourth quarter of 2016 and the resulting adjustments will be recorded in accordance with ASU 2015-16 “Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments.”

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The following table summarizes the estimated Clearlink acquisition date fair values of the assets acquired and liabilities assumed, all included in the Americas segment (in thousands):

	April 1, 2016
Cash and cash equivalents	$	2,584
Receivables (1)		16,801
Prepaid expenses		1,553
Total current assets		20,938
Property and equipment		12,869
Goodwill		70,223
Intangibles		121,400
Deferred charges and other assets		229
Accounts payable		(3,564)
Accrued employee compensation and benefits		(1,610)
Deferred revenue		(4,620)
Other accrued expenses and current liabilities		(6,324)
Total current liabilities		(16,118)
Other long-term liabilities		(1,633)
	$	207,908
(1) The fair value equals the gross contractual value of the receivables.

Fair values are based on management’s estimates and assumptions including variations of the income approach, the cost approach and the market approach.

The following table presents the Company’s purchased intangibles assets as of April 1, 2016, the Clearlink acquisition date (in thousands):

	Amount Assigned		Weighted Average  Amortization Period  (years)
Customer relationships	$	63,800		13
Trade name		2,400		7
Non-compete agreements		1,800		3
Proprietary software		700		5
Indefinite-lived domain names		52,700		N/A
	$	121,400		7

The amount of Clearlink’s revenues and net income since the April 1, 2016 acquisition date, included in the Company’s Condensed Consolidated Statements of Operations for both the three and six months ended June 30, 2016, were as follows (in thousands):

	From April 1, 2016   Through June 30, 2016
Revenues	$	36,362
Net income	$	791

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The following table presents the unaudited pro forma combined revenues and net earnings as if Clearlink had been included in the consolidated results of the Company for the entire three and six month periods ended June 30, 2016 and 2015. The pro forma financial information is not indicative of the results of operations that would have been achieved if the acquisition and related borrowings had taken place on January 1, 2016 and 2015 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Revenues	$	364,403	$	337,833	$	718,977	$	690,073
Net income	$	10,975	$	13,398	$	25,895	$	29,450
Net income per common share:
Basic	$	0.26	$	0.32	$	0.62	$	0.70
Diluted	$	0.26	$	0.32	$	0.62	$	0.70

These amounts have been calculated to reflect the additional depreciation, amortization, interest expense and rent expense that would have been incurred assuming the fair value adjustments and borrowings occurred on January 1, 2016 and January 1, 2015, together with the consequential tax effects. In addition, these amounts exclude costs incurred which are directly attributable to the acquisition, and which do not have a continuing impact on the combined companies’ operating results. Included in these costs are advisory and legal costs, net of the tax effects.

Acquisition-related costs associated with Clearlink in the accompanying Condensed Consolidated Statement of Operations were as follows (none in 2015) (in thousands):

		Three Months Ended   June 30, 2016		Six Months Ended    June 30, 2016
Transaction and integration costs: (1)
	Americas	$	29	$	29
	Other		2,934		4,376
	(1)Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

Qelp

On July 2, 2015, the Company’s wholly-owned subsidiaries, Sykes Enterprises Incorporated B.V. and Sykes Enterprises Incorporated Holdings B.V., both Netherlands companies, entered into a definitive Share Sale and Purchase Agreement (the “Purchase Agreement”) with MobileTimes B.V., Yarra B.V., From The Mountain Consultancy B.V. and Sticting Administratiekantoor Qelp (the “Sellers”), all of which are Netherlands companies, to acquire all of the outstanding shares of Qelp B.V. and its wholly owned subsidiary (together, known as “Qelp”.) The strategic acquisition of Qelp (the “Qelp acquisition”) was to further broaden and strengthen the Company’s service portfolio around digital self-service customer support and extend its reach into adjacent, but complementary, markets. Pursuant to Federal income tax regulations, no amount of intangibles or goodwill from this acquisition will be deductible for tax purposes. The results of Qelp’s operations have been included in the Company’s consolidated financial statements since its acquisition on July 2, 2015 (the “Qelp acquisition date”).

The consideration consisted of an initial purchase price and a contingent purchase price. The initial purchase price of $9.8 million, including certain post-closing adjustments relating to Qelp’s working capital, was funded through cash on hand upon the closing of the transaction on July 2, 2015. The contingent purchase price to be paid over a three year period is based on achieving targets tied to revenues and earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the years ended December 31, 2016, 2017 and 2018, not to exceed EUR 10.0 million.

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As of the Qelp acquisition date, the total consideration paid or to be paid by the Company for the Qelp acquisition is summarized below (in thousands):

	Total
Cash	$	9,885
Contingent consideration		6,000
Working capital adjustment		(65)
	$	15,820

The fair value of the contingent consideration was estimated using the discounted cash flow method, and was included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets (see Note 4, Fair Value, for further information). As part of the discounted cash flow method, the Company calculated an adjusted weighted average cost of capital (“WACC”) specifically attributable to the future payments of the contingent consideration. Based on the forecasted revenue and profitability scenarios and their respective probabilities of occurrence, the Company estimated the present value of the probability-adjusted future payments utilizing an adjusted WACC for the potential future payments. The Company believes that its estimates and assumptions are reasonable, but there is significant judgment involved. Changes in the fair value of the contingent consideration liabilities subsequent to the acquisition will be recorded in the Company’s consolidated financial statements.

The Company accounted for the Qelp acquisition in accordance with ASC 805, whereby the fair value of the purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed from Qelp based on their estimated fair values as of the closing date. The Company completed its analysis of the purchase price allocation during the fourth quarter of 2015.

The following table summarizes the Qelp acquisition date fair values of the assets acquired and liabilities assumed, all included in the EMEA segment (in thousands):

	July 2, 2015
Cash and cash equivalents	$	450
Receivables (1)		1,471
Prepaid expenses		24
Total current assets		1,945
Property and equipment		2,168
Goodwill		10,054
Intangibles		6,000
Deferred charges and other assets		55
Short-term debt		(323)
Accrued employee compensation and benefits		(207)
Income taxes payable		(94)
Deferred revenue		(967)
Other accrued expenses and current liabilities		(1,030)
Total current liabilities		(2,621)
Other long-term liabilities (2)		(1,781)
	$	15,820
(1) The fair value equals the gross contractual value of the receivables.
(2) Primarily includes long-term deferred tax liabilities.

Fair values were based on management’s estimates and assumptions including variations of the income approach, the cost approach and the market approach.

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The following table presents the Company’s purchased intangibles assets as of July 2, 2015, the Qelp acquisition date (in thousands):

	Amount Assigned		Weighted Average  Amortization Period  (years)
Customer relationships	$	5,400		7
Trade name and trademarks		100		3
Content library		500		2
	$	6,000		7

Note 3. Costs Associated with Exit or Disposal Activities

In connection with the Company’s initiatives to streamline excess capacity in The Philippines and various locations in the U.S. (the “Exit Plans”), the Company has paid $7.8 million in cash through June 30, 2016.

The cumulative costs expected and incurred as a result of the Exit Plans were as follows as of June 30, 2016 (in thousands):

	Americas Fourth  Quarter 2011  Exit Plan		Americas Third  Quarter 2010  Exit Plan		Total
Lease obligations and facility exit costs	$	1,365	$	6,729	$	8,094
Non-cash impairment charges		480		3,847		4,327
Total	$	1,845	$	10,576	$	12,421

The following table summarizes the accrued liability associated with the Exit Plans’ exit or disposal activities and related charges for the three and six months ended June 30, 2016 and 2015 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Beginning accrual	$	527	$	1,346	$	733	$	1,558
Lease obligations and facility exit costs		-		-		-		-
Cash payments (1)		(208)		(196)		(414)		(408)
Ending accrual	$	319	$	1,150	$	319	$	1,150
(1) Related to lease obligations and facility exit costs.

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Restructuring Liability Classification

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with its exit and disposal activities, by plan, as of June 30, 2016 and December 31, 2015 (in thousands):

	Americas Fourth  Quarter 2011  Exit Plan		Americas Third  Quarter 2010  Exit Plan		Total
June 30, 2016
Short-term accrued restructuring liability (1)	$	76	$	243	$	319
Long-term accrued restructuring liability (2)		-		-		-
Ending accrual at June 30, 2016	$	76	$	243	$	319
December 31, 2015
Short-term accrued restructuring liability (1)	$	144	$	487	$	631
Long-term accrued restructuring liability (2)		22		80		102
Ending accrual at December 31, 2015	$	166	$	567	$	733

(1)	Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.
(2)	Included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

The remaining restructuring liability relates to future rent obligations to be paid through the remainder of the lease terms, the last of which ends in February 2017.

Note 4. Fair Value

ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy:

● Level 1 — Quoted prices for identical instruments in active markets.

● Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

● Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Fair Value of Financial Instruments — The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

● Cash, short-term and other investments, investments held in rabbi trust and accounts payable — The carrying values for cash, short-term and other investments, investments held in rabbi trust and accounts payable approximate their fair values.

● Foreign currency forward contracts and options — Foreign currency forward contracts and options, including premiums paid on options, are recognized at fair value based on quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk.

● Embedded derivatives — Embedded derivatives within certain hybrid lease agreements are bifurcated from the host contract and recognized at fair value based on pricing models or formulas using significant unobservable inputs, including adjustments for credit risk.

● Long-term debt — The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates.

● Contingent consideration — The contingent consideration is recognized at fair value based on the discounted cash flow method.

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Fair Value Measurements — ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements. ASC 820-10-20 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

ASC 825 “Financial Instruments” (“ASC 825”) permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to use the fair value option permitted under ASC 825 for any of its financial assets and financial liabilities that are not already recorded at fair value.

Determination of Fair Value — The Company generally uses quoted market prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access to determine fair value, and classifies such items in Level 1. Fair values determined by Level 2 inputs utilize inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, and inputs other than quoted market prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, currency rates, etc. Assets or liabilities valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable.

The following section describes the valuation methodologies used by the Company to measure assets and liabilities at fair value on a recurring basis, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified.

Money Market and Open-End Mutual Funds — The Company uses quoted market prices in active markets to determine the fair value. These items are classified in Level 1 of the fair value hierarchy.

Foreign Currency Forward Contracts and Options — The Company enters into foreign currency forward contracts and options over the counter and values such contracts using quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk. The key inputs include forward or option foreign currency exchange rates and interest rates. These items are classified in Level 2 of the fair value hierarchy.

Embedded Derivatives — The Company uses significant unobservable inputs to determine the fair value of embedded derivatives, which are classified in Level 3 of the fair value hierarchy. These unobservable inputs include expected cash flows associated with the lease, currency exchange rates on the day of commencement, as well as forward currency exchange rates; results of which are adjusted for credit risk. These items are classified in Level 3 of the fair value hierarchy. See Note 6, Financial Derivatives, for further information.

Investments Held in Rabbi Trust — The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 7, Investments Held in Rabbi Trust, and Note 16, Stock-Based Compensation.

Guaranteed Investment Certificates — Guaranteed investment certificates, with variable interest rates linked to the prime rate, approximate fair value due to the automatic ability to re-price with changes in the market; such items are classified in Level 2 of the fair value hierarchy.

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Contingent Consideration — The Company uses significant unobservable inputs to determine the fair value of contingent consideration, which is classified in Level 3 of the fair value hierarchy. The contingent consideration recorded related to the Qelp acquisition and liabilities assumed as part of the Clearlink acquisition was recognized at fair value using a discounted cash flow methodology and a discount rate of approximately 14.0% and 10.0%, respectively. The discount rates vary dependent on the specific risks of each acquisition including the country of operation, the nature of services and complexity of the acquired business, and other similar factors, all of which are significant inputs not observable in the market. Significant increases or decreases in any of the inputs in isolation would result in a significantly higher or lower fair value measurement.

The Company’s assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following (in thousands):

				Fair Value Measurements at June 30, 2016 Using:
		Balance at		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
		June 30, 2016		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	1,429	$	-	$	1,429	$	-
Embedded derivatives	(1)		119		-		-		119
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		6,607		6,607		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		1,908		1,908		-		-
Guaranteed investment certificates	(3)		95		-		95		-
		$	10,158	$	8,515	$	1,524	$	119
Liabilities:
Long-term debt	(4)	$	272,000	$	-	$	272,000	$	-
Foreign currency forward and option contracts	(1)		2,255		-		2,255		-
Embedded derivatives	(1)		76		-		-		76
Contingent consideration included in “Other accrued expenses and current liabilities”	(5)		3,772		-		-		3,772
Contingent consideration included in “Other long-term liabilities”	(5)		5,924		-		-		5,924
		$	284,027	$	-	$	274,255	$	9,772
				Fair Value Measurements at December 31, 2015 Using:
		Balance at		Quoted Prices in Active Markets For  Identical Assets		Significant Other       Observable       Inputs		Significant    Unobservable    Inputs
		December 31, 2015		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	10,962	$	-	$	10,962	$	-
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		6,229		6,229		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		1,622		1,622		-		-
Guaranteed investment certificates	(3)		86		-		86		-
		$	18,899	$	7,851	$	11,048	$	-
Liabilities:
Long-term debt	(4)	$	70,000	$	-	$	70,000	$	-
Foreign currency forward and option contracts	(1)		835		-		835		-
Contingent consideration included in “Other long-term liabilities”	(5)		6,280		-		-		6,280
		$	77,115	$	-	$	70,835	$	6,280

⁽¹⁾ See Note 6, Financial Derivatives, for the classification in the accompanying Condensed Consolidated Balance Sheets.

⁽²⁾ Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets. See Note 7, Investments Held in Rabbi Trust.

⁽³⁾ Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.

⁽⁴⁾ The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 10, Borrowings.

⁽⁵⁾ In the accompanying Condensed Consolidated Balance Sheets.

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Reconciliations of Fair Value Measurements Categorized within Level 3 of the Fair Value Hierarchy

Embedded Derivatives in Lease Agreements

A rollforward of the net asset (liability) activity in the Company’s fair value of the embedded derivatives is as follows (in thousands) (none in 2015):

	Fair Value
Balance at January 1, 2016	$	-
Gain (loss) recognized in “Other income (expense)” (1)		46
Effect of foreign currency		(3)
Balance at June 30, 2016	$	43
Unrealized gain (loss) for the three months ended June 30, 2016	$	(12)
Unrealized gain (loss) for the six months ended June 30, 2016	$	43

⁽¹⁾  Includes realized and unrealized gain (loss).

Contingent Consideration

A rollforward of the activity in the Company’s fair value of the contingent consideration is as follows (in thousands):

	Fair Value
Balance at January 1, 2015	$	-
Acquisition (1)		6,000
Payments		-
Imputed interest/adjustments		408
Effect of foreign currency		(128)
Balance at December 31, 2015		6,280
Acquisition (2)		2,779
Payments		-
Imputed interest/adjustments		509
Effect of foreign currency		128
Balance at June 30, 2016	$	9,696

(1)	Related to the Qelp acquisition on July 2, 2015. See Note 2, Acquisitions.
(2)	Liability acquired as part of the Clearlink acquisition on April 1, 2016. See Note 2, Acquisitions.

The Company did not record any fair value adjustments to the contingent consideration as the key assumptions used to calculate the fair value at the acquisition dates remained consistent at June 30, 2016. Should the assumptions regarding probability of achievement of certain targets, including revenue and EBITDA, change in future periods, the change in fair value of the contingent consideration will be recognized in the Company’s consolidated financial statements. The Company accretes interest expense each period using the effective interest method until the contingent consideration reaches the estimated future value of $12.1 million. Interest expense related to the contingent consideration is included in “Interest (expense)” in the accompanying Condensed Consolidated Statements of Operations.

Non-Recurring Fair Value

Certain assets, under certain conditions, are measured at fair value on a nonrecurring basis utilizing Level 3 inputs, like those associated with acquired businesses, including goodwill, other intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if these assets were determined to be impaired. The adjusted carrying values for assets measured at fair value on a nonrecurring basis (no liabilities) subject to the requirements of ASC 820 were not material at June 30, 2016 and December 31, 2015.

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Note 5.  Goodwill and Intangible Assets

Intangible Assets

The following table presents the Company’s purchased intangible assets as of June 30, 2016 (in thousands):

	Gross Intangibles		Accumulated       Amortization		Net Intangibles		Weighted Average  Amortization Period (years)
Intangible assets subject to amortization:
Customer relationships	$	167,628	$	(66,842)	$	100,786		10
Trade names and trademarks		14,100		(6,235)		7,865		7
Non-compete agreements		2,997		(1,347)		1,650		2
Content library		500		(250)		250		2
Proprietary software		1,550		(885)		665		3
Favorable lease agreement		449		(449)		-		2
Intangible assets not subject to amortization:
Domain names		52,700		-		52,700		N/A
	$	239,924	$	(76,008)	$	163,916		6

The following table presents the Company’s purchased intangible assets as of December 31, 2015 (in thousands):

	Gross Intangibles		Accumulated       Amortization		Net Intangibles		Weighted Average  Amortization Period (years)
Intangible assets subject to amortization:
Customer relationships	$	102,594	$	(58,294)	$	44,300		8
Trade names and trademarks		11,698		(5,470)		6,228		8
Content library		491		(123)		368		2
Non-compete agreements		1,190		(1,190)		-		2
Proprietary software		850		(850)		-		2
Favorable lease agreement		449		(449)		-		2
	$	117,272	$	(66,376)	$	50,896		8

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to June 30, 2016, is as follows (in thousands):

Years Ending December 31,	Amount
2016 (remaining six months)	$	10,433
2017		20,755
2018		14,495
2019		13,443
2020		10,783
2021		6,397
2022 and thereafter		34,910

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Goodwill

Changes in goodwill for the six months ended June 30, 2016 consist of the following (in thousands):

	January 1, 2016		Acquisition (1)		Effect of Foreign  Currency		June 30, 2016
Americas	$	186,049	$	70,223	$	1,848	$	258,120
EMEA		9,684		-		345		10,029
	$	195,733	$	70,223	$	2,193	$	268,149

Changes in goodwill for the year ended December 31, 2015 consist of the following (in thousands):

	January 1, 2015		Acquisition (1)		Effect of Foreign  Currency		December 31, 2015
Americas	$	193,831	$	-	$	(7,782)	$	186,049
EMEA		-		10,054		(370)		9,684
	$	193,831	$	10,054	$	(8,152)	$	195,733

⁽¹⁾ See Note 2, Acquisitions, for further information.

The Company performs its annual goodwill impairment test during the third quarter, or more frequently, if indicators of impairment exist.

For the annual goodwill impairment test, the Company elected to forgo the option to first assess qualitative factors and performed its annual two-step goodwill impairment test as of July 31, 2015. Under ASC 350, the carrying value of assets is calculated at the reporting unit level. The quantitative assessment of goodwill includes comparing a reporting unit’s calculated fair value to its carrying value. The calculation of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth, the useful life over which cash flows will occur and determination of the Company’s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. If the fair value of the reporting unit is less than its carrying value, goodwill is considered impaired and an impairment loss is recorded to the extent that the fair value of the goodwill within the reporting unit is less than its carrying value.

The process of evaluating the fair value of the reporting units is highly subjective and requires significant judgment and estimates as the reporting units operate in a number of markets and geographical regions. The Company used an average of the income and market approaches to determine its best estimates of fair value which incorporated the following significant assumptions:

● Revenue projections, including revenue growth during the forecast periods;

● EBITDA margin projections over the forecast periods;

● Estimated income tax rates;

● Estimated capital expenditures; and

● Discount rates based on various inputs, including the risks associated with the specific reporting units as well as their revenue growth and EBITDA margin assumptions.

As of July 31, 2015, the Company concluded that goodwill was not impaired for all five of its reporting units with goodwill. While the fair values of four of the reporting units were substantially in excess of their carrying value, the Qelp reporting unit’s fair value approximated its carrying value due to the proximity to the acquisition date of July 2, 2015. The newly acquired Qelp reporting unit’s carrying value was $15.6 million at July 31, 2015, including $9.9 million of goodwill.

The Qelp reporting unit is at risk for future impairment if projected operating results are not met or other inputs into the fair value measurement change. However, as of June 30, 2016 and December 31, 2015, there were no indicators of impairment.

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Note 6. Financial Derivatives

Cash Flow Hedges – The Company has derivative assets and liabilities relating to outstanding forward contracts and options, designated as cash flow hedges, as defined under ASC 815 “Derivatives and Hedging” (“ASC 815”), consisting of Philippine Peso, Costa Rican Colon, Hungarian Forint and Romanian Leu contracts. These contracts are entered into to protect against the risk that the eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates.

The deferred gains (losses) and related taxes on the Company’s cash flow hedges recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) in the accompanying Condensed Consolidated Balance Sheets are as follows (in thousands):

	June 30, 2016		December 31, 2015
Deferred gains (losses) in AOCI	$	(75)	$	(558)
Tax on deferred gains (losses) in AOCI		(18)		31
Deferred gains (losses) in AOCI, net of taxes	$	(93)	$	(527)
Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months	$	(39)

Deferred gains (losses) and other future reclassifications from AOCI will fluctuate with movements in the underlying market price of the forward contracts and options.

Net Investment Hedge – The Company enters into foreign exchange forward contracts to hedge its net investment in certain foreign operations, as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against the risk that the net assets of certain foreign subsidiaries will be adversely affected by changes in exchange rates and economic exposures related to the Company’s foreign currency-based investments in these subsidiaries.

Non-Designated Hedges

Foreign Currency Forward Contracts – The Company also periodically enters into foreign currency hedge contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against adverse foreign currency moves relating primarily to intercompany receivables and payables, and other assets and liabilities that are denominated in currencies other than the Company’s subsidiaries’ functional currencies. These contracts generally do not exceed 180 days in duration.

Embedded Derivatives – The Company enters into certain lease agreements which require payments not denominated in the functional currency of any substantial party to the agreements. The foreign currency component of these contracts meets the criteria under ASC 815 as embedded derivatives. The Company has determined that the embedded derivatives are not clearly and closely related to the economic characteristics and risks of the host contracts (lease agreements), and separate, stand-alone instruments with the same terms as the embedded derivative instruments would otherwise qualify as derivative instruments, thereby requiring separation from the lease agreements and recognition at fair value. Such instruments do not qualify for hedge accounting under ASC 815.

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The Company had the following outstanding foreign currency forward contracts and options, and embedded derivatives (in thousands):

	As of June 30, 2016				As of December 31, 2015
Contract Type	Notional     Amount in     USD		Settle Through     Date		Notional     Amount in     USD		Settle Through     Date
Cash flow hedges:
Options:
Philippine Pesos	$	54,000		March 2017	$	71,750		December 2016
Forwards:
Costa Rican Colones		32,000		September 2017		34,500		November 2016
Hungarian Forints		1,330		December 2016		-		-
Romanian Leis		3,308		December 2016		-		-
Net investment hedges:
Forwards:
Euros		76,933		September 2017		63,470		March 2016
Non-designated hedges:
Forwards		58,683		September 2016		50,603		March 2016
Embedded derivatives		11,626		April 2030		-		-

Master netting agreements exist with each respective counterparty to reduce credit risk by permitting net settlement of derivative positions. In the event of default by the Company or one of its counterparties, these agreements include a set-off clause that provides the non-defaulting party the right to net settle all derivative transactions, regardless of the currency and settlement date. The maximum amount of loss due to credit risk that, based on gross fair value, the Company would incur if parties to the derivative transactions that make up the concentration failed to perform according to the terms of the contracts was $1.5 million and $11.0 million as of June 30, 2016 and December 31, 2015, respectively. After consideration of these netting arrangements and offsetting positions by counterparty, the total net settlement amount as it relates to these positions are asset positions of $0.6 million and $10.2 million as of June 30, 2016 and December 31, 2015, respectively, and liability positions of $1.4 million and $0.1 million as of June 30, 2016 and December 31, 2015, respectively.

Although legally enforceable master netting arrangements exist between the Company and each counterparty, the Company has elected to present the derivative assets and derivative liabilities on a gross basis in the accompanying Condensed Consolidated Balance Sheets. Additionally, the Company is not required to pledge, nor is it entitled to receive, cash collateral related to these derivative transactions.

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The following tables present the fair value of the Company’s derivative instruments included in the accompanying Condensed Consolidated Balance Sheets (in thousands):

	Derivative Assets
	June 30, 2016		December 31, 2015
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (1)	$	921	$	544
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (1)		-		10,161
Foreign currency forward contracts (2)		419		-
		1,340		10,705
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (1)		89		257
Embedded derivatives (1)		3		-
Embedded derivatives (2)		116		-
Total derivative assets	$	1,548	$	10,962
	Derivative Liabilities
	June 30, 2016		December 31, 2015
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (3)	$	426	$	396
Foreign currency forward and option contracts (4)		36		-
		462		396
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (4)		1,295		-
		1,757		396
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (3)		498		439
Embedded derivatives (3)		4		-
Embedded derivatives (4)		72		-
Total derivative liabilities	$	2,331	$	835

(1)	Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets.
(2)	Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.
(3)	Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.
(4)	Included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

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The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the three months ended June 30, 2016 and 2015 (in thousands):

	Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)				Gain (Loss) Reclassified From Accumulated AOCI Into “Revenues” (Effective Portion)				Gain (Loss) Recognized in “Revenues” on Derivatives (Ineffective Portion and Amount Excluded  from Effectiveness Testing)
	June 30,				June 30,				June 30,
	2016		2015		2016		2015		2016		2015
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	(2,072)	$	357	$	4	$	739	$	-	$	1
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		2,414		(1,848)		-		-		-		-
	$	342	$	(1,491)	$	4	$	739	$	-	$	1

	Statements of Operations     Location	Gain (Loss) Recognized   on Derivatives
		June 30,
		2016		2015
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	Other income and (expense)	$	575	$	67
Foreign currency forward contracts	Revenues		-		4
Embedded derivatives	Other income and (expense)		10		-
		$	585	$	71

The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the six months ended June 30, 2016 and 2015 (in thousands):

	Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)				Gain (Loss) Reclassified From Accumulated AOCI Into “Revenues” (Effective Portion)				Gain (Loss) Recognized in “Revenues” on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	June 30,				June 30,				June 30,
	2016		2015		2016		2015		2016		2015
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	431	$	2,412	$	(50)	$	1,328	$	-	$	2
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		(698)		4,510		-		-		-		-
	$	(267)	$	6,922	$	(50)	$	1,328	$	-	$	2

	Statements of Operations     Location	Gain (Loss) Recognized   on Derivatives
		June 30,
		2016		2015
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	Other income and (expense)	$	1,370	$	(97)
Foreign currency forward contracts	Revenues		-		4
Embedded derivatives	Other income and (expense)		(46)		-
		$	1,324	$	(93)

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Note 7.  Investments Held in Rabbi Trust

The Company’s investments held in rabbi trust, classified as trading securities and included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets, at fair value, consist of the following (in thousands):

	June 30, 2016				December 31, 2015
	Cost		Fair Value		Cost		Fair Value
Mutual funds	$	6,766	$	8,515	$	6,217	$	7,851

The mutual funds held in rabbi trust were 78% equity-based and 22% debt-based as of June 30, 2016. Net investment income (losses), included in “Other income (expense)” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Gross realized gains from sale of trading securities	$	-	$	17	$	-	$	20
Gross realized (losses) from sale of trading securities		-		-		-		(1)
Dividend and interest income		10		13		19		18
Net unrealized holding gains (losses)		134		(50)		154		73
Net investment income (losses)	$	144	$	(20)	$	173	$	110

Note 8. Deferred Revenue

Deferred revenue consists of the following (in thousands):

	June 30, 2016		December 31, 2015
Future service	$	24,847	$	22,112
Estimated potential penalties and holdbacks		8,452		6,007
Estimated chargebacks		4,382		-
	$	37,681	$	28,119

The Company receives up-front fees in connection with certain contracts. The deferred revenue is earned over the service periods of the respective contracts, which range from 30 days to seven years. Deferred revenue included in current liabilities in the accompanying Condensed Consolidated Balance Sheets includes the up-front fees associated with services to be provided over the ensuing twelve month period and the up-front fees associated with services to be provided over multiple years in connection with contracts that contain cancellation and refund provisions, whereby the manufacturers or customers can terminate the contracts and demand pro-rata refunds of the up-front fees with short notice. Deferred revenue from estimated penalties and holdbacks results from the failure to meet specified minimum service levels in certain contracts and other performance based contingencies. Deferred revenue from estimated chargebacks reflects the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred.

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Note 9. Deferred Grants

Deferred grants, net of accumulated amortization, consist of the following (in thousands):

	June 30, 2016		December 31, 2015
Property grants	$	4,063	$	4,377
Lease grants		496		513
Employment grants		117		149
Total deferred grants		4,676		5,039
Less: Property grants - short-term (1)		-		-
Less: Lease grants - short-term (1)		(84)		(80)
Less: Employment grants - short-term (1)		(117)		(149)
Total long-term deferred grants	$	4,475	$	4,810

⁽¹⁾ Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.

Note 10. Borrowings

On May 12, 2015, the Company entered into a $440 million revolving credit facility (the “2015 Credit Agreement”) with a group of lenders and KeyBank National Association, as Lead Arranger, Sole Book Runner, Administrative Agent, Swing Line Lender and Issuing Lender (“KeyBank”). The 2015 Credit Agreement is subject to certain borrowing limitations and includes certain customary financial and restrictive covenants.

The 2015 Credit Agreement includes a $200 million alternate-currency sub-facility, a $10 million swingline sub-facility and a $35 million letter of credit sub-facility, and may be used for general corporate purposes including acquisitions, share repurchases, working capital support and letters of credit, subject to certain limitations. The Company is not currently aware of any inability of its lenders to provide access to the full commitment of funds that exist under the revolving credit facility, if necessary. However, there can be no assurance that such facility will be available to the Company, even though it is a binding commitment of the financial institutions.

Borrowings consist of the following (in thousands):

	June 30, 2016		December 31, 2015
Revolving credit facility	$	272,000	$	70,000
Less: Current portion		-		-
Total long-term debt	$	272,000	$	70,000

On April 1, 2016, the Company borrowed $216.0 million under its 2015 Credit Agreement in connection with the acquisition of Clearlink, of which $4.0 million represented a short-term loan to Clearlink for working capital purposes.

The 2015 Credit Agreement matures on May 12, 2020 and has no varying installments due.

Borrowings under the 2015 Credit Agreement bear interest at the rates set forth in the 2015 Credit Agreement. In addition, the Company is required to pay certain customary fees, including a commitment fee determined quarterly based on the Company’s leverage ratio and due quarterly in arrears as calculated on the average unused amount of the 2015 Credit Agreement. The commitment fee was 0.125% for the three and six months ended June 30, 2016 and 2015.

The 2015 Credit Agreement is guaranteed by all of the Company’s existing and future direct and indirect material U.S. subsidiaries and secured by a pledge of 100% of the non-voting and 65% of the voting capital stock of all the direct foreign subsidiaries of the Company and those of the guarantors.

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In May 2015, the Company paid an underwriting fee of $0.9 million for the 2015 Credit Agreement, which is deferred and amortized over the term of the loan, along with the deferred loan fees of $0.4 million related to the previous credit agreement.

The following table presents information related to our credit agreements (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Average daily utilization	$	278,769	$	70,198	$	174,385	$	72,249
Interest expense, including commitment fee (1)	$	1,079	$	320	$	1,454	$	638
Weighted average interest rate		1.6%		1.8%		1.9%		1.8%

⁽¹⁾ Excludes the amortization of deferred loan fees.

Note 11. Accumulated Other Comprehensive Income (Loss)

The Company presents data in the Condensed Consolidated Statements of Changes in Shareholders’ Equity in accordance with ASC 220 “Comprehensive Income” (“ASC 220”). ASC 220 establishes rules for the reporting of comprehensive income (loss) and its components. The components of accumulated other comprehensive income (loss) consist of the following (in thousands):

	Foreign Currency Translation Gain (Loss)		Unrealized Gain (Loss) on Net Investment Hedge		Unrealized Actuarial Gain (Loss) Related to Pension Liability		Unrealized Gain (Loss) on Cash Flow Hedging Instruments		Unrealized Gain (Loss) on Post Retirement Obligation		Total
Balance at January 1, 2015	$	(22,076)	$	276	$	1,008	$	(111)	$	342	$	(20,561)
Pre-tax amount		(37,178)		6,101		121		1,708		(12)		(29,260)
Tax (provision) benefit		-		(2,207)		(2)		32		-		(2,177)
Reclassification of (gain) loss to net income		647		-		(53)		(2,195)		(63)		(1,664)
Foreign currency translation		6		-		(45)		39		-		-
Balance at December 31, 2015		(58,601)		4,170		1,029		(527)		267		(53,662)
Pre-tax amount		4,297		(698)		-		431		-		4,030
Tax (provision) benefit		-		265		-		(26)		-		239
Reclassification of (gain) loss to net income		-		-		(22)		28		(27)		(21)
Foreign currency translation		3		-		(4)		1		-		-
Balance at June 30, 2016	$	(54,301)	$	3,737	$	1,003	$	(93)	$	240	$	(49,414)

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The following table summarizes the amounts reclassified to net income from accumulated other comprehensive income (loss) and the associated line item in the accompanying Condensed Consolidated Statements of Operations (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,				Statements of Operations     Location
	2016		2015		2016		2015
Actuarial Gain (Loss) Related to Pension Liability: (1)
Pre-tax amount	$	10	$	10	$	22	$	21	Direct salaries and related costs
Tax (provision) benefit		-		-		-		-	Income taxes
Reclassification to net income		10		10		22		21
Gain (Loss) on Cash Flow Hedging Instruments: (2)
Pre-tax amount		4		740		(50)		1,330	Revenues
Tax (provision) benefit		3		5		22		11	Income taxes
Reclassification to net income		7		745		(28)		1,341
Gain (Loss) on Post Retirement Obligation: (1)
Pre-tax amount		14		14		27		28	General and administrative
Tax (provision) benefit		-		-		-		-	Income taxes
Reclassification to net income		14		14		27		28
Total reclassification of gain (loss) to net income	$	31	$	769	$	21	$	1,390

⁽¹⁾ See Note 15, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

⁽²⁾ See Note 6, Financial Derivatives, for further information.

Except as discussed in Note 12, Income Taxes, earnings associated with the Company’s investments in its foreign subsidiaries are considered to be indefinitely reinvested and no provision for income taxes on those earnings or translation adjustments have been provided.

Note 12. Income Taxes

The Company’s effective tax rate was 29.9% and 26.6% for the three months ended June 30, 2016 and 2015, respectively. The increase in the effective tax rate is predominately due to several factors, including shifts in earnings among the various jurisdictions in which the Company operates, none of which are individually material. The difference between the Company’s effective tax rate of 29.9% as compared to the U.S. statutory federal income tax rate of 35.0% was primarily due to the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in uncertain tax positions, adjustments of valuation allowances and tax credits, partially offset by the tax impact of permanent differences and foreign withholding taxes.

The Company’s effective tax rate was 30.4% and 26.8% for the six months ended June 30, 2016 and 2015, respectively. The increase in the effective tax rate is predominately due to several factors, including shifts in earnings among the various jurisdictions in which the Company operates, none of which are individually material. The difference between the Company’s effective tax rate of 30.4% as compared to the U.S. statutory federal income tax rate of 35.0% was primarily due to the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in uncertain tax positions, adjustments of valuation allowances and tax credits, partially offset by the tax impact of permanent differences and foreign withholding taxes.

Earnings associated with the investments in the Company’s foreign subsidiaries are considered to be indefinitely reinvested outside of the U.S. Therefore, a U.S. provision for income taxes on those earnings or translation adjustments has not been recorded, as permitted by criterion outlined in ASC 740 “Income Taxes.” Determination of any unrecognized deferred tax liability related to investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates.

The Company is currently under audit in several tax jurisdictions. The Company received assessments for the Canadian 2003-2009 audit. Requests for Competent Authority Assistance were filed with both the Canadian Revenue Agency and the U.S. Internal Revenue Service and the Company paid mandatory security deposits to Canada as part of this process. The total amount of deposits, net of the effects of foreign exchange rate adjustments,

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are $14.3 million and $13.4 million as of June 30, 2016 and December 31, 2015, respectively, and are included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets. Although the outcome of examinations by taxing authorities is always uncertain, the Company believes it is adequately reserved for these audits and resolution is not expected to have a material impact on its financial condition and results of operations.

The significant tax jurisdictions currently under audit are as follows:

Tax Jurisdiction	Tax Years Ended
Canada	2003 to 2009

Note 13. Earnings Per Share

Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust using the treasury stock method.

The numbers of shares used in the earnings per share computation are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Basic:
Weighted average common shares outstanding		41,970		42,008		41,838		42,095
Diluted:
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust		131		208		263		233
Total weighted average diluted shares outstanding		42,101		42,216		42,101		42,328
Anti-dilutive shares excluded from the diluted earnings per share calculation		21		27		21		24

On August 18, 2011, the Company’s Board of Directors (the “Board”) authorized the Company to purchase up to 5.0 million shares of its outstanding common stock (the “2011 Share Repurchase Program”). On March 16, 2016, the Board authorized an increase of 5.0 million shares to the 2011 Share Repurchase Program for a total of 10.0 million shares. A total of 4.9 million shares have been repurchased under the 2011 Share Repurchase Program since inception. The shares are purchased, from time to time, through open market purchases or in negotiated private transactions, and the purchases are based on factors, including but not limited to, the stock price, management discretion and general market conditions. The 2011 Share Repurchase Program has no expiration date.

The shares repurchased under the Company’s share repurchase programs were as follows (in thousands, except per share amounts) (none in 2016):

	Total Number     of Shares		Range of Prices Paid Per Share				Total Cost of Shares
	Repurchased		Low		High		Repurchased
Three Months Ended:
June 30, 2015		279	$	24.14	$	24.79	$	6,833
Six Months Ended:
June 30, 2015		500	$	22.81	$	24.79	$	11,969

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Note 14. Commitments and Loss Contingency

Commitments

During the six months ended June 30, 2016, the Company entered into several leases in the ordinary course of business. The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of June 30, 2016, including the impact of the leases assumed in connection with the Clearlink acquisition (in thousands):

	Amount
2016 (remaining six months)	$	3,635
2017		9,256
2018		9,179
2019		9,317
2020		8,986
2021		7,115
2022 and thereafter		27,800
Total minimum payments required	$	75,288

During the six months ended June 30, 2016, the Company entered into agreements with third-party vendors in the ordinary course of business whereby the Company committed to purchase goods and services used in its normal operations. These agreements generally are not cancelable, range from one to five year periods and may contain fixed or minimum annual commitments. Certain of these agreements allow for renegotiation of the minimum annual commitments. The following is a schedule of the future minimum purchases remaining under the agreements as of June 30, 2016, including the impact of the agreements assumed in connection with the Clearlink acquisition (in thousands):

	Amount
2016 (remaining six months)	$	5,513
2017		1,749
2018		652
2019		-
2020		-
2021		-
2022 and thereafter		-
Total minimum payments required	$	7,914

The July 2015 Qelp acquisition included contingent consideration of $6.0 million, based on achieving targets tied to revenues and EBITDA for the years ended December 31, 2016, 2017 and 2018. The estimated future value of the contingent consideration is $9.1 million and is expected to be paid over a three year period.

As part of the April 2016 Clearlink acquisition, the Company assumed contingent consideration liabilities related to four separate acquisitions made by Clearlink in 2015 and 2016, prior to the Merger. The fair value of the contingent consideration related to these previous acquisitions was $2.8 million as of April 1, 2016 and was based on achieving targets primarily tied to revenues for varying periods of time during 2016 and 2017. The estimated future value of the contingent consideration is $3.0 million and is expected to be paid on varying dates through July 2017.

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Loss Contingency

The Company, from time to time, is involved in legal actions arising in the ordinary course of business. With respect to these matters, management believes that the Company has adequate legal defenses and/or when possible and appropriate, provided adequate accruals related to those matters such that the ultimate outcome will not have a material adverse effect on the Company’s financial position or results of operations.

Note 15. Defined Benefit Pension Plan and Postretirement Benefits

Defined Benefit Pension Plans

The following table provides information about the net periodic benefit cost for the Company’s pension plans (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Service cost	$	120	$	113	$	238	$	228
Interest cost		45		35		89		71
Recognized actuarial (gains)		(10)		(10)		(22)		(21)
Net periodic benefit cost	$	155	$	138	$	305	$	278

Employee Retirement Savings Plans

The Company maintains a 401(k) plan covering defined employees who meet established eligibility requirements. Under the plan provisions, the Company matches 50% of participant contributions to a maximum matching amount of 2% of participant compensation. The Company’s contributions included in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
401(k) plan contributions	$	334	$	188	$	619	$	471

Split-Dollar Life Insurance Arrangement

In 1996, the Company entered into a split-dollar life insurance arrangement to benefit the former Chairman and Chief Executive Officer of the Company. Under the terms of the arrangement, the Company retained a collateral interest in the policy to the extent of the premiums paid by the Company. The postretirement benefit obligation included in “Other long-term liabilities” and the unrealized gains (losses) included in “Accumulated other comprehensive income” in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands):

	June 30, 2016		December 31, 2015
Postretirement benefit obligation	$	31	$	37
Unrealized gains (losses) in AOCI (1)	$	240	$	267

⁽¹⁾ Unrealized gains (losses) are impacted by changes in discount rates related to the postretirement obligation.

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Note 16. Stock-Based Compensation

The Company’s stock-based compensation plans include the 2011 Equity Incentive Plan, the Non-Employee Director Fee Plan and the Deferred Compensation Plan. The following table summarizes the stock-based compensation expense (primarily in the Americas), income tax benefits related to the stock-based compensation and excess tax benefits (deficiencies) (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Stock-based compensation (expense) (1)	$	(3,547)	$	(1,288)	$	(5,729)	$	(3,284)
Income tax benefit (2)		1,348		486		2,177		1,215
Excess tax benefit (deficiency) from stock-based compensation (3)		149		-		2,060		169

(1)	Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.
(2)	Included in “Income taxes” in the accompanying Condensed Consolidated Statements of Operations.
(3)	Included in “Additional paid-in capital” in the accompanying Condensed Consolidated Statements of Changes in Shareholders’ Equity.

There were no capitalized stock-based compensation costs as of June 30, 2016 and December 31, 2015.

2011 Equity Incentive Plan — The Company’s Board adopted the Sykes Enterprises, Incorporated 2011 Equity Incentive Plan (the “2011 Plan”) on March 23, 2011, as amended on May 11, 2011 to reduce the number of shares of common stock available to 4.0 million shares. The 2011 Plan was approved by the shareholders at the May 2011 annual shareholders meeting. The 2011 Plan replaced and superseded the Company’s 2001 Equity Incentive Plan (the “2001 Plan”), which expired on March 14, 2011. The outstanding awards granted under the 2001 Plan will remain in effect until their exercise, expiration or termination. The 2011 Plan permits the grant of restricted stock, stock appreciation rights, stock options and other stock-based awards to certain employees of the Company, members of the Company’s Board of Directors and certain non-employees who provide services to the Company in order to encourage them to remain in the employment of, or to faithfully provide services to, the Company and to increase their interest in the Company’s success.

Stock Appreciation Rights — The Board, at the recommendation of the Compensation and Human Resources Development Committee (the “Compensation Committee”), has approved in the past, and may approve in the future, awards of stock-settled stock appreciation rights (“SARs”) for eligible participants. SARs represent the right to receive, without payment to the Company, a certain number of shares of common stock, as determined by the Compensation Committee, equal to the amount by which the fair market value of a share of common stock at the time of exercise exceeds the grant price. The SARs are granted at the fair market value of the Company’s common stock on the date of the grant and vest one-third on each of the first three anniversaries of the date of grant, provided the participant is employed by the Company on such date. The SARs have a term of 10 years from the date of grant. The fair value of each SAR is estimated on the date of grant using the Black-Scholes valuation model that uses various assumptions.

The following table summarizes the assumptions used to estimate the fair value of SARs granted:

	Six Months Ended June 30,
	2016		2015
Expected volatility		25.3%		34.1%
Weighted-average volatility		25.3%		34.1%
Expected dividend rate		0.0%		0.0%
Expected term (in years)		5.0		5.0
Risk-free rate		1.5%		1.6%

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The following table summarizes SARs activity as of June 30, 2016 and for the six months then ended:

Stock Appreciation Rights	Shares (000s)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (000s)
Outstanding at January 1, 2016		481	$	-
Granted		323	$	-
Exercised		(151)	$	-
Forfeited or expired		(20)	$	-
Outstanding at June 30, 2016		633	$	-		8.7	$	1,974
Vested or expected to vest at June 30, 2016		633	$	-		8.7	$	1,974
Exercisable at June 30, 2016		118	$	-		6.3	$	797

The following table summarizes information regarding SARs granted and exercised (in thousands, except per SAR amounts):

	Six Months Ended June 30,
	2016		2015
Number of SARs granted		323		217
Weighted average grant-date fair value per SAR	$	7.68	$	8.17
Intrinsic value of SARs exercised	$	1,691	$	734
Fair value of SARs vested	$	1,520	$	1,302

The following table summarizes nonvested SARs activity as of June 30, 2016 and for the six months then ended:

Nonvested Stock Appreciation Rights	Shares (000s)		Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2016		424	$	7.50
Granted		323	$	7.68
Vested		(213)	$	7.14
Forfeited or expired		(19)	$	7.68
Nonvested at June 30, 2016		515	$	7.76

As of June 30, 2016, there was $3.5 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested SARs granted under the 2011 Plan. This cost is expected to be recognized over a weighted average period of 1.5 years.

Restricted Shares – The Board, at the recommendation of the Compensation Committee, has approved in the past, and may approve in the future, awards of performance and employment-based restricted shares (“restricted shares”) for eligible participants. In some instances, where the issuance of restricted shares has adverse tax consequences to the recipient, the Board may instead issue restricted stock units (“RSUs”). The restricted shares are shares of the Company’s common stock (or in the case of RSUs, represent an equivalent number of shares of the Company’s common stock) which are issued to the participant subject to (a) restrictions on transfer for a period of time and (b) forfeiture under certain conditions. The performance goals, including revenue growth and income from operations targets, provide a range of vesting possibilities from 0% to 100% and will be measured at the end of the performance period. If the performance conditions are met for the performance period, the shares will vest and all restrictions on the transfer of the restricted shares will lapse (or in the case of RSUs, an equivalent number of shares of the Company’s common stock will be issued to the recipient). The Company recognizes compensation cost, net of estimated forfeitures, based on the fair value (which approximates the current market price) of the restricted shares (and RSUs) on the date of grant ratably over the requisite service period based on the probability of achieving the performance goals.

Changes in the probability of achieving the performance goals from period to period will result in corresponding changes in compensation expense. The employment-based restricted shares currently outstanding vest one-third on each of the first three anniversaries of the date of grant, provided the participant is employed by the Company on such date.

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The following table summarizes nonvested restricted shares/RSUs activity as of June 30, 2016 and for the six months then ended:

Nonvested Restricted Shares and RSUs	Shares (000s)		Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2016		1,246	$	20.03
Granted		451	$	30.32
Vested		(421)	$	16.10
Forfeited or expired		(136)	$	20.60
Nonvested at June 30, 2016		1,140	$	25.49

The following table summarizes information regarding restricted shares/RSUs granted and vested (in thousands, except per restricted share/RSU amounts):

	Six Months Ended June 30,
	2016		2015
Number of restricted shares/RSUs granted		451		441
Weighted average grant-date fair value per restricted share/RSU	$	30.32	$	25.06
Fair value of restricted shares/RSUs vested	$	6,785	$	2,019

As of June 30, 2016, based on the probability of achieving the performance goals, there was $21.2 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted shares/RSUs granted under the 2011 Plan. This cost is expected to be recognized over a weighted average period of 2.1 years.

Non-Employee Director Fee Plan — The Company’s 2004 Non-Employee Director Fee Plan (the “2004 Fee Plan”), as amended on May 17, 2012, provided that all new non-employee directors joining the Board would receive an initial grant of shares of common stock on the date the new director is elected or appointed, the number of which will be determined by dividing $60,000 by the closing price of the Company’s common stock on the trading day immediately preceding the date a new director is elected or appointed, rounded to the nearest whole number of shares. The initial grant of shares vested in twelve equal quarterly installments, one-twelfth on the date of grant and an additional one-twelfth on each successive third monthly anniversary of the date of grant. The award lapses with respect to all unvested shares in the event the non-employee director ceases to be a director of the Company, and any unvested shares are forfeited.

The 2004 Fee Plan also provided that each non-employee director would receive, on the day after the annual shareholders meeting, an annual retainer for service as a non-employee director (the “Annual Retainer”). Prior to May 17, 2012, the Annual Retainer was $95,000, of which $50,000 was payable in cash, and the remainder was paid in stock. The annual grant of cash vested in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant. The annual grant of shares paid to non-employee directors prior to May 17, 2012 vests in eight equal quarterly installments, one-eighth on the day following the annual meeting of shareholders, and an additional one-eighth on each successive third monthly anniversary of the date of grant. On May 17, 2012, upon the recommendation of the Compensation Committee, the Board adopted the Fifth Amended and Restated Non-Employee Director Fee Plan (the “Amendment”), which increased the common stock component of the Annual Retainer by $30,000, resulting in a total Annual Retainer of $125,000, of which $50,000 was payable in cash and the remainder paid in stock. In addition, the Amendment also changed the vesting period for the annual equity award, from a two-year vesting period, to a one-year vesting period (consisting of four equal quarterly installments, one-fourth on the date of grant and an additional one-fourth on each successive third monthly anniversary of the date of grant). The award lapses with respect to all unpaid cash and unvested shares in the event the non-employee director ceases to be a director of the Company, and any unvested shares and unpaid cash are forfeited.

In addition to the Annual Retainer award, the 2004 Fee Plan also provided for any non-employee Chairman of the Board to receive an additional annual cash award of $100,000, and each non-employee director serving on a committee of the Board to receive an additional annual cash award. The additional annual cash award for the Chairperson of the Audit Committee is $20,000 and Audit Committee members’ are entitled to an annual cash award of $10,000. The annual cash awards for the Chairpersons of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee are $15,000, $12,500 and $12,500, respectively, and all other members of such committees are entitled to an annual cash award of $7,500.

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The 2004 Fee Plan expired in May 2014, prior to the 2014 Annual Shareholder Meeting. In March 2014, upon the recommendation of the Compensation Committee, the Board determined that, following the expiration of the 2004 Fee Plan, the compensation of non-employee Directors should continue on the same terms as provided in the Fifth Amended and Restated Non-Employee Director Fee Plan, except the amounts of cash and equity grants shall be determined annually by the Board, and that the stock portion of such compensation would be issued under the 2011 Plan.

At the Board’s regularly scheduled meeting on December 10, 2014, upon the recommendation of the Compensation Committee, the Board determined that the amount of the cash and equity compensation payable to non-employee directors beginning on the date of the 2015 annual shareholder meeting would be increased as follows: cash compensation would be increased by $5,000 per year to a total of $55,000 and equity compensation would be increased by $25,000 per year to a total of $100,000. No change would be made in the additional amounts payable to the Chairman of the Board or the Chairs or members of the various Board committees for their service on such committees, and no changes would be made in the payment terms described above for such cash and equity compensation.

The Board may pay additional cash compensation to any non-employee director for services on behalf of the Board over and above those typically expected of directors, including but not limited to service on a special committee of the Board.

The following table summarizes nonvested common stock share award activity as of June 30, 2016 and for the six months then ended:

Nonvested Common Stock Share Awards	Shares (000s)		Weighted Average Grant-  Date Fair Value
Nonvested at January 1, 2016		11	$	23.74
Granted		32	$	29.04
Vested		(16)	$	26.50
Forfeited or expired		(1)	$	24.70
Nonvested at June 30, 2016		26	$	28.56

The following table summarizes information regarding common stock share awards granted and vested (in thousands, except per share award amounts):

	Six Months Ended June 30,
	2016		2015
Number of share awards granted		32		32
Weighted average grant-date fair value per share award	$	29.04	$	24.70
Fair value of share awards vested	$	410	$	370

As of June 30, 2016, there was $0.6 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested common stock share awards granted under the Fee Plan. This cost is expected to be recognized over a weighted average period of 0.6 years.

Deferred Compensation Plan — The Company’s non-qualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which is not shareholder-approved, was adopted by the Board effective December 17, 1998, It was last amended and restated on May 18, 2016, effective as of June 30, 2016. It provides certain eligible employees the ability to defer any portion of their compensation until the participant’s retirement, termination, disability or death, or a change in control of the Company. Using the Company’s common stock, the Company matches 50% of the amounts deferred by certain senior management participants on a quarterly basis up to a total of $12,000 per year for the president, chief executive officer and executive vice presidents and $7,500 per year for senior vice presidents, global vice presidents and vice presidents (participants below the level of vice president are not eligible to receive matching contributions from the Company). Matching contributions and the associated

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earnings vest over a seven year service period. Deferred compensation amounts used to pay benefits, which are held in a rabbi trust, include investments in various mutual funds and shares of the Company’s common stock (see Note 7, Investments Held in Rabbi Trust). As of June 30, 2016 and December 31, 2015, liabilities of $8.5 million and $7.9 million, respectively, of the Deferred Compensation Plan were recorded in “Accrued employee compensation and benefits” in the accompanying Condensed Consolidated Balance Sheets.

Additionally, the Company’s common stock match associated with the Deferred Compensation Plan, with a carrying value of approximately $1.8 million and $1.6 million at June 30, 2016 and December 31, 2015, respectively, is included in “Treasury stock” in the accompanying Condensed Consolidated Balance Sheets.

The following table summarizes nonvested common stock activity as of June 30, 2016 and for the six months then ended:

Nonvested Common Stock	Shares (000s)		Weighted Average Grant-  Date Fair Value
Nonvested at January 1, 2016		3	$	19.53
Granted		6	$	29.76
Vested		(7)	$	28.14
Forfeited or expired		-	$	23.49
Nonvested at June 30, 2016		2	$	22.27

The following table summarizes information regarding shares of common stock granted and vested (in thousands, except per common stock amounts):

	Six Months Ended June 30,
	2016		2015
Number of shares of common stock granted		6		6
Weighted average grant-date fair value per common stock	$	29.76	$	24.69
Fair value of common stock vested	$	183	$	169
Cash used to settle the obligation	$	359	$	65

As of June 30, 2016, there was less than $0.1 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested common stock granted under the Deferred Compensation Plan. This cost is expected to be recognized over a weighted average period of 2.7 years.

Note 17. Segments and Geographic Information

The Company operates within two regions, the Americas and EMEA. Each region represents a reportable segment comprised of aggregated regional operating segments, which portray similar economic characteristics. The Company aligns its business into two segments to effectively manage the business and support the customer care needs of every client and to respond to the demands of the Company’s global customers.

The reportable segments consist of (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, and provides outsourced customer contact management solutions (with an emphasis on technical support and customer service) and technical staffing and (2) EMEA, which includes Europe, the Middle East and Africa, and provides outsourced customer contact management solutions (with an emphasis on technical support and customer service), and fulfillment services. The sites within Latin America, Australia and the Asia Pacific Rim are included in the Americas segment given the nature of the business and client profile, which is primarily made up of U.S.-based companies that are using the Company’s services in these locations to support their customer contact management needs.

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Information about the Company’s reportable segments is as follows (in thousands):

	Americas		EMEA		Other (1)		Consolidated
Three Months Ended June 30, 2016:
Revenues	$	305,211	$	59,152	$	39	$	364,402
Percentage of revenues		83.8%		16.2%		0.0%		100.0%
Depreciation, net	$	10,316	$	1,162	$	482	$	11,960
Amortization of intangibles	$	4,995	$	268	$	-	$	5,263
Income (loss) from operations	$	30,725	$	2,896	$	(20,219)	$	13,402
Other (expense), net						(373)		(373)
Income taxes						(3,891)		(3,891)
Net income							$	9,138
Total assets as of June 30, 2016	$	1,759,137	$	1,473,687	$	(2,013,833)	$	1,218,991
Three Months Ended June 30, 2015:
Revenues	$	249,682	$	57,752	$	19	$	307,453
Percentage of revenues		81.2%		18.8%		0.0%		100.0%
Depreciation, net	$	9,605	$	1,084	$	318	$	11,007
Amortization of intangibles	$	3,435	$	-	$	-	$	3,435
Income (loss) from operations	$	28,669	$	2,969	$	(13,421)	$	18,217
Other (expense), net						(626)		(626)
Income taxes						(4,679)		(4,679)
Net income							$	12,912
Total assets as of June 30, 2015	$	1,067,801	$	1,394,836	$	(1,534,068)	$	928,569
Six Months Ended June 30, 2016:
Revenues	$	567,287	$	117,777	$	84	$	685,148
Percentage of revenues		82.8%		17.2%		0.0%		100.0%
Depreciation, net	$	19,492	$	2,326	$	926	$	22,744
Amortization of intangibles	$	8,363	$	527	$	-	$	8,890
Income (loss) from operations	$	63,712	$	6,306	$	(36,346)	$	33,672
Other (expense), net						(475)		(475)
Income taxes						(10,105)		(10,105)
Net income							$	23,092
Six Months Ended June 30, 2015:
Revenues	$	513,855	$	117,247	$	36	$	631,138
Percentage of revenues		81.4%		18.6%		0.0%		100.0%
Depreciation, net	$	19,185	$	2,227	$	654	$	22,066
Amortization of intangibles	$	6,866	$	-	$	-	$	6,866
Income (loss) from operations	$	61,210	$	6,757	$	(27,209)	$	40,758
Other (expense), net						(1,728)		(1,728)
Income taxes						(10,479)		(10,479)
Net income							$	28,551

⁽¹⁾ Other items (including corporate and other costs, impairment costs, other income and expense, and income taxes) are shown for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the three and six months ended June 30, 2016 and 2015. Inter-segment revenues are not material to the Americas and EMEA segment results. The Company evaluates the performance of its geographic segments based on revenues and income (loss) from operations, and does not include segment assets or other income and expense items for management reporting purposes.

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Note 18. Other Income (Expense)

Other income (expense) consists of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Foreign currency transaction gains (losses)	$	1,410	$	(90)	$	2,756	$	(1,025)
Gains (losses) on foreign currency derivative instruments not designated as hedges		(585)		67		(1,324)		(97)
Other miscellaneous income (expense)		242		(144)		188		126
	$	1,067	$	(167)	$	1,620	$	(996)

Note 19. Related Party Transactions

In January 2008, the Company entered into a lease for a customer contact management center located in Kingstree, South Carolina. The landlord, Kingstree Office One, LLC, is an entity controlled by John H. Sykes, the founder, former Chairman and Chief Executive Officer of the Company and the father of Charles Sykes, President and Chief Executive Officer of the Company. The lease payments on the 20-year lease were negotiated at or below market rates, and the lease is cancellable at the option of the Company. There are significant penalties for early cancellation which decrease over time. The Company paid $0.1 million to the landlord during both the three months ended June 30, 2016 and 2015 and $0.2 million during both the six months ended June 30, 2016 and 2015 under the terms of the lease.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

Sykes Enterprises, Incorporated

400 North Ashley Drive

Tampa, Florida

We have reviewed the accompanying condensed consolidated balance sheet of Sykes Enterprises, Incorporated and subsidiaries (the “Company”) as of June 30, 2016, and the related condensed consolidated statements of operations and comprehensive income (loss) for the three- and six-month periods ended June 30, 2016 and 2015, of changes in shareholders’ equity for the six-month period ended June 30, 2016, and of cash flows for the six-month periods ended June 30, 2016 and 2015. These interim financial statements are the responsibility of the Company’s management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to such condensed consolidated interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Sykes Enterprises, Incorporated and subsidiaries as of December 31, 2015, and the related consolidated statements of operations, comprehensive income (loss), changes in shareholders’ equity, and cash flows for the year then ended (not presented herein); and in our report dated February 29, 2016, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2015 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

/s/ Deloitte & Touche LLP

Tampa, Florida

August 2, 2016

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

This discussion should be read in conjunction with the condensed consolidated financial statements and notes included elsewhere in this report and the consolidated financial statements and notes in the Sykes Enterprises, Incorporated (“SYKES,” “our,” “we” or “us”) Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the Securities and Exchange Commission (“SEC”).

Our discussion and analysis may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates, forecasts, and projections about SYKES, our beliefs, and assumptions made by us. In addition, we may make other written or oral statements, which constitute forward-looking statements, from time to time. Words such as “believe,” “estimate,” “project,” “expect,” “intend,” “may,” “anticipate,” “plan,” “seek,” variations of such words, and similar expressions are intended to identify such forward-looking statements. Similarly, statements that describe our future plans, objectives, or goals also are forward-looking statements. These statements are not guarantees of future performance and are subject to a number of risks and uncertainties, including those discussed below and elsewhere in this report. Our actual results may differ materially from what is expressed or forecasted in such forward-looking statements, and undue reliance should not be placed on such statements. All forward-looking statements are made as of the date hereof, and we undertake no obligation to update any such forward-looking statements, whether as a result of new information, future events or otherwise.

Factors that could cause actual results to differ materially from what is expressed or forecasted in such forward-looking statements include, but are not limited to: (i) the impact of economic recessions in the U.S. and other parts of the world, (ii) fluctuations in global business conditions and the global economy, (iii) currency fluctuations, (iv) the timing of significant orders for our products and services, (v) variations in the terms and the elements of services offered under our standardized contract including those for future bundled service offerings, (vi) changes in applicable accounting principles or interpretations of such principles, (vii) difficulties or delays in implementing our bundled service offerings, (viii) failure to achieve sales, marketing and other objectives, (ix) construction delays of new or expansion of existing customer contact management centers, (x) delays in our ability to develop new products and services and market acceptance of new products and services, (xi) rapid technological change, (xii) loss or addition of significant clients, (xiii) political and country-specific risks inherent in conducting business abroad, (xiv) our ability to attract and retain key management personnel, (xv) our ability to continue the growth of our support service revenues through additional technical and customer contact management centers, (xvi) our ability to further penetrate into vertically integrated markets, (xvii) our ability to expand our global presence through strategic alliances and selective acquisitions, (xviii) our ability to continue to establish a competitive advantage through sophisticated technological capabilities, (xix) the ultimate outcome of any lawsuits, (xx) our ability to recognize deferred revenue through delivery of products or satisfactory performance of services, (xxi) our dependence on trend toward outsourcing, (xxii) risk of interruption of technical and customer contact management center operations due to such factors as fire, earthquakes, inclement weather and other disasters, power failures, telecommunication failures, unauthorized intrusions, computer viruses and other emergencies, (xxiii) the existence of substantial competition, (xxiv) the early termination of contracts by clients, (xxv) the ability to obtain and maintain grants and other incentives (tax or otherwise), (xxvi) the potential of cost savings/synergies associated with acquisitions not being realized, or not being realized within the anticipated time period, (xxvii) risks related to the integration of the acquisitions and the impairment of any related goodwill, and (xxviii) other risk factors which are identified in our most recent Annual Report on Form 10-K, including factors identified under the headings “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Executive Summary

We provide comprehensive customer contact management solutions and services to a wide range of clients including Global 2000 companies, medium-sized businesses and public institutions around the world, primarily in the communications, financial services, technology/consumer, transportation and leisure and healthcare industries. We serve our clients through two geographic operating regions: the Americas (United States, Canada, Latin America, Australia and the Asia Pacific Rim) and EMEA (Europe, the Middle East and Africa). Our Americas and EMEA groups primarily provide customer contact management services (with an emphasis on inbound technical support, demand generation and customer service), which include customer assistance, healthcare and roadside assistance, technical support, and product and service sales to our clients’ customers. These services, which represented 99.2% and 97.8% of consolidated revenues during the three months ended June 30, 2016 and 2015, respectively, and 99.1% and 98.2% of consolidated revenues during the six months ended June 30, 2016 and 2015, respectively, are

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delivered through multiple communication channels encompassing phone, e-mail, social media, text messaging, chat and digital self-service. We also provide various enterprise support services in the United States (“U.S.”) that include services for our client’s internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, we also provide fulfillment services, which includes order processing, payment processing, inventory control, product delivery, and product returns handling. Our complete service offering helps our clients acquire, retain and increase the lifetime value of their customer relationships. We have developed an extensive global reach with customer contact management centers throughout the United States, Canada, Europe, Latin America, Australia, the Asia Pacific Rim and Africa.

Acquisition of Clearlink

In April 2016, we completed the acquisition of Clear Link Holdings, LLC (“Clearlink”), to expand our suite of service offerings while creating differentiation in the marketplace, broadening our addressable market opportunity and extending executive level reach within our existing clients’ organization. We refer to such acquisition herein as the “Clearlink acquisition.”

The total purchase price of $207.9 million was funded by borrowings under our existing credit facility.

The results of operations of Clearlink have been reflected in the accompanying Condensed Consolidated Statements of Operations since April 1, 2016.

Acquisition of Qelp

In July 2015, we completed the acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”), to further broaden and strengthen our service portfolio around digital self-service customer support and extend our reach into adjacent, but complementary, markets. We refer to such acquisition herein as the “Qelp acquisition.”

The total purchase price of $15.8 million was funded by $9.8 million in cash on hand and contingent consideration with a fair value of $6.0 million as of July 2, 2015.

The results of operations of Qelp have been reflected in the accompanying Condensed Consolidated Statements of Operations since July 2, 2015.

Results of Operations

The following table sets forth, for the periods indicated, the amounts presented in the accompanying Condensed Consolidated Statements of Operations as well as the change between the respective periods:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2016		2015		2016 $ Change		2016		2015		2016 $ Change
Revenues	$	364,402	$	307,453	$	56,949	$	685,148	$	631,138	$	54,010
Operating expenses:
Direct salaries and related costs		239,442		202,143		37,299		444,997		416,070		28,927
General and administrative		94,335		72,651		21,684		174,845		145,378		29,467
Depreciation, net		11,960		11,007		953		22,744		22,066		678
Amortization of intangibles		5,263		3,435		1,828		8,890		6,866		2,024
Total operating expenses		351,000		289,236		61,764		651,476		590,380		61,096
Income from operations		13,402		18,217		(4,815)		33,672		40,758		(7,086)
Other income (expense):
Interest income		141		151		(10)		294		317		(23)
Interest (expense)		(1,581)		(610)		(971)		(2,389)		(1,049)		(1,340)
Other income (expense)		1,067		(167)		1,234		1,620		(996)		2,616
Total other income (expense)		(373)		(626)		253		(475)		(1,728)		1,253
Income before income taxes		13,029		17,591		(4,562)		33,197		39,030		(5,833)
Income taxes		3,891		4,679		(788)		10,105		10,479		(374)
Net income	$	9,138	$	12,912	$	(3,774)	$	23,092	$	28,551	$	(5,459)

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Three Months Ended June 30, 2016 Compared to Three Months Ended June 30, 2015

Revenues

	Three Months Ended June 30,
	2016				2015
(in thousands)	Amount		% of Revenues		Amount		% of Revenues		$ Change
Americas	$	305,211		83.8%	$	249,682		81.2%	$	55,529
EMEA		59,152		16.2%		57,752		18.8%		1,400
Other		39		0.0%		19		0.0%		20
Consolidated	$	364,402		100.0%	$	307,453		100.0%	$	56,949

Consolidated revenues increased $56.9 million, or 18.5%, for the three months ended June 30, 2016 from the comparable period in 2015.

The increase in Americas’ revenues was due to Clearlink acquisition revenues of $36.4 million, new clients of $15.3 million and higher volumes from existing clients of $15.3 million, partially offset by end-of-life client programs of $7.6 million and a negative foreign currency impact of $3.9 million. Revenues from our offshore operations represented 40.7% of Americas’ revenues, compared to 46.4% for the comparable period in 2015.

The increase in EMEA’s revenues was due to new clients of $3.3 million and higher volumes from existing clients of $0.6 million, partially offset by end-of-life client programs of $2.5 million.

On a consolidated basis, we had 45,700 brick-and-mortar seats as of June 30, 2016, an increase of 5,500 seats from the comparable period in 2015. Included in this seat count are 1,400 seats associated with Clearlink. This increase in seats, net of the Clearlink additions, was primarily due to seat additions to support higher projected demand. The capacity utilization rate on a combined basis was 78% compared to 80% in the comparable period in 2015. This decrease was due to a significant increase in the seat count related to projected client demand.

On a geographic segment basis, 39,300 seats were located in the Americas, an increase of 5,800 seats from the comparable period in 2015, and 6,400 seats were located in EMEA, a decrease of 300 seats from the comparable period in 2015. Capacity utilization rates as of June 30, 2016 were 77% for the Americas and 79% for EMEA, compared to 79% and 86%, respectively, in the comparable period in 2015, with the decrease in utilization in the Americas primarily due to seat additions for higher projected demand and the decrease in utilization in EMEA primarily due to lower demand in certain existing clients, certain end-of-life client programs and the rationalization of seats in a highly utilized center due to a planned program expiration. We strive to attain a capacity utilization rate of 85% at each of our locations.

Excluding Clearlink, we added 2,100 seats on a gross basis in the second quarter of 2016, with the additions for the first half of 2016 totaling 4,500. Total gross seats planned for the full year, excluding Clearlink, are now expected to be around 6,900. We plan to add another 2,000 in gross seats in the third quarter of 2016. However, we plan to rationalize 1,800 seats in 2016, 1,300 of which were rationalized in the first half of 2016. Total seat count on a net basis for the full year is expected to increase 5,100 in 2016 versus 2015, which excludes the expected full year seat count of 1,500 from Clearlink.

Direct Salaries and Related Costs

	Three Months Ended June 30,
	2016				2015
(in thousands)	Amount		% of Revenues		Amount		% of Revenues		$ Change		Change in % of Revenues
Americas	$	197,077		64.6%	$	159,942		64.1%	$	37,135		0.5%
EMEA		42,365		71.6%		42,201		73.1%		164		-1.5%
Consolidated	$	239,442		65.7%	$	202,143		65.7%	$	37,299		0.0%

The increase of $37.3 million in direct salaries and related costs included a positive foreign currency impact of $3.6 million in the Americas and a negative foreign currency impact of $0.1 million in EMEA.

The increase in Americas’ direct salaries and related costs, as a percentage of revenues, was primarily attributable to higher customer-acquisition advertising costs of 2.6% in connection with Clearlink’s operations and higher

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recruiting costs of 0.3%, partially offset by lower compensation costs of 1.4% driven by Clearlink’s operations which has lower direct labor costs relative to our mix of business in the prior period, lower communication costs of 0.5%, lower auto tow claim costs of 0.4% and lower other costs of 0.1%.

The decrease in EMEA’s direct salaries and related costs, as a percentage of revenues, was primarily attributable to lower fulfillment materials costs of 3.0% and lower postage costs of 0.8%, partially offset by higher compensation costs of 2.3% driven by a decrease in agent productivity principally within the technology and communications verticals in the current period.

General and Administrative

	Three Months Ended June 30,
	2016				2015
(in thousands)	Amount		% of Revenues		Amount		% of Revenues		$ Change		Change in % of Revenues
Americas	$	62,098		20.3%	$	48,031		19.2%	$	14,067		1.1%
EMEA		12,461		21.1%		11,498		19.9%		963		1.2%
Other		19,776		-		13,122		-		6,654		-
Consolidated	$	94,335		25.9%	$	72,651		23.6%	$	21,684		2.3%

The increase of $21.7 million in general and administrative expenses included a positive foreign currency impact of $1.0 million in the Americas and a positive foreign currency impact of $0.1 million in EMEA.

The increase in Americas’ general and administrative expenses, as a percentage of revenues, was primarily attributable to higher compensation costs of 1.1% driven by ramp up in the current period for new and existing client programs in the communications and financial services verticals, higher communications costs of 0.2% and higher other costs of 0.1%, partially offset by lower facility-related costs of 0.3%.

The increase in EMEA’s general and administrative expenses, as a percentage of revenues, was primarily attributable to higher compensation costs of 0.8%, higher consulting costs of 0.3%, higher travel costs of 0.2% and higher recruiting costs of 0.2% and higher other costs of 0.3%, partially offset by lower facility-related costs of 0.6%.

The increase of $6.7 million in Other general and administrative expenses, which includes corporate and other costs, was primarily attributable to higher compensation costs of $3.1 million, higher merger and integration costs of $2.9 million, higher software maintenance costs of $0.1 million, higher communications costs of $0.1 million and higher other costs of $0.5 million.

Depreciation and Amortization

	Three Months Ended June 30,
	2016				2015
(in thousands)	Amount		% of Revenues		Amount		% of Revenues		$ Change		Change in % of Revenues
Depreciation, net:
Americas	$	10,316		3.4%	$	9,605		3.8%	$	711		-0.4%
EMEA		1,162		2.0%		1,084		1.9%		78		0.1%
Other		482		-		318		-		164		-
Consolidated	$	11,960		3.3%	$	11,007		3.6%	$	953		-0.3%
Amortization of intangibles:
Americas	$	4,995		1.6%	$	3,435		1.4%	$	1,560		0.2%
EMEA		268		0.5%		-		0.0%		268		0.5%
Other		-		-		-		-		-		-
Consolidated	$	5,263		1.4%	$	3,435		1.1%	$	1,828		0.3%

The increase in depreciation was primarily due to the addition of depreciable fixed assets acquired in conjunction with the April 2016 Clearlink acquisition, partially offset by certain fully depreciated fixed assets.

The increase in amortization was primarily due to the addition of intangible assets acquired in conjunction with the April 2016 Clearlink acquisition and the July 2015 Qelp acquisition, partially offset by certain fully amortized intangible assets.

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Other Income (Expense)

	Three Months Ended June 30,
(in thousands)	2016		2015		$ Change
Interest income	$	141	$	151	$	(10)
Interest (expense)	$	(1,581)	$	(610)	$	(971)
Other income (expense):
Foreign currency transaction gains (losses)	$	1,410	$	(90)	$	1,500
Gains (losses) on foreign currency derivative instruments not designated as hedges		(585)		67		(652)
Other miscellaneous income (expense)		242		(144)		386
Total other income (expense)	$	1,067	$	(167)	$	1,234

Interest income remained consistent with the comparable period in 2015.

The increase in interest (expense) was primarily due to $216.0 million in borrowings used to acquire Clearlink in April 2016.

Income Taxes

	Three Months Ended June 30,
(in thousands)	2016		2015		$ Change
Income before income taxes	$	13,029	$	17,591	$	(4,562)
Income taxes	$	3,891	$	4,679	$	(788)
					% Change
Effective tax rate		29.9%		26.6%		3.3%

The increase in the effective tax rate in 2016 compared to 2015 is due to several factors, including fluctuations in earnings among the various jurisdictions in which we operate, none of which are individually material.

Six Months Ended June 30, 2016 Compared to Six Months Ended June 30, 2015

Revenues

	Six Months Ended June 30,
	2016				2015
(in thousands)	Amount		% of Revenues		Amount		% of Revenues		$ Change
Americas	$	567,287		82.8%	$	513,855		81.4%	$	53,432
EMEA		117,777		17.2%		117,247		18.6%		530
Other		84		0.0%		36		0.0%		48
Consolidated	$	685,148		100.0%	$	631,138		100.0%	$	54,010

Consolidated revenues increased $54.0 million, or 8.6%, for the six months ended June 30, 2016 from the comparable period in 2015.

The increase in Americas’ revenues was due to Clearlink acquisition revenues of $36.4 million, new clients of $24.2 million and higher volumes from existing clients of $19.8 million, partially offset by end-of-life client programs of $17.0 million and a negative foreign currency impact of $10.0 million. Revenues from our offshore operations represented 42.9% of Americas’ revenues, compared to 44.3% for the comparable period in 2015.

The increase in EMEA’s revenues was due to new clients of $5.8 million and higher volumes from existing clients of $1.7 million, partially offset by end-of-life client programs of $5.1 million and a negative foreign currency impact of $1.9 million.

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Direct Salaries and Related Costs

	Six Months Ended June 30,
	2016				2015
(in thousands)	Amount		% of      Revenues		Amount		% of Revenues		$ Change		Change in % of   Revenues
Americas	$	360,724		63.6%	$	331,041		64.4%	$	29,683		-0.8%
EMEA		84,273		71.6%		85,029		72.5%		(756)		-0.9%
Consolidated	$	444,997		64.9%	$	416,070		65.9%	$	28,927		-1.0%

The increase of $28.9 million in direct salaries and related costs included a positive foreign currency impact of $9.2 million in the Americas and a positive foreign currency impact of $1.3 million in EMEA.

The decrease in Americas’ direct salaries and related costs, as a percentage of revenues, was primarily attributable to lower compensation costs of 1.2% driven by Clearlink’s operations which has lower direct labor costs relative to our mix of business in the prior period, lower communication costs of 0.6%, lower auto tow claim costs of 0.5% and lower other costs of 0.2%, partially offset by higher customer-acquisition advertising costs of 1.4% in connection with Clearlink’s operations and higher recruiting costs of 0.3%.

The decrease in EMEA’s direct salaries and related costs, as a percentage of revenues, was primarily attributable to lower fulfillment materials costs of 1.6%, lower postage costs of 0.6%, lower recruiting costs of 0.2% and lower other costs of 0.1%, partially offset by higher compensation costs of 1.6% driven by a decrease in agent productivity principally within the technology and communications verticals in the current period.

General and Administrative

	Six Months Ended June 30,
	2016			2015
(in thousands)	Amount		% of      Revenues	Amount		% of Revenues		$ Change		Change in % of   Revenues
Americas	$	114,996	20.3%	$	95,553		18.6%	$	19,443	1.7%
EMEA		24,345	20.7%		23,234		19.8%		1,111	0.9%
Other		35,504	-		26,591		-		8,913	-
Consolidated	$	174,845	25.5%	$	145,378		23.0%	$	29,467	2.5%

The increase of $29.5 million in general and administrative expenses included a positive foreign currency impact of $2.5 million in the Americas and a positive foreign currency impact of $0.5 million in EMEA.

The increase in Americas’ general and administrative expenses, as a percentage of revenues, was primarily attributable to higher compensation costs of 1.1% driven by ramp up in the current period for new and existing client programs in the communications and financial services verticals and end-of-life client programs without a commensurate reduction in the associated labor costs, higher facility-related costs of 0.2%, higher consulting costs of 0.1% and higher other costs of 0.3%.

The increase in EMEA’s general and administrative expenses, as a percentage of revenues, was primarily attributable to higher compensation costs of 0.8%, higher consulting costs of 0.2% and higher other costs of 0.5%, partially offset by lower facility-related costs of 0.6%.

The increase of $8.9 million in Other general and administrative expenses, which includes corporate and other costs, was primarily attributable to higher compensation costs of $4.1 million, higher merger and integration costs of $4.0 million, higher consulting costs of $0.4 million, higher travel costs of $0.2 million and higher other costs of $0.2 million.

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Depreciation and Amortization

	Six Months Ended June 30,
	2016				2015
(in thousands)	Amount		% of Revenues		Amount		% of Revenues		$ Change		Change in % of Revenues
Depreciation, net:
Americas	$	19,492		3.4%	$	19,185		3.7%	$	307		-0.3%
EMEA		2,326		2.0%		2,227		1.9%		99		0.1%
Other		926		-		654		-		272		-
Consolidated	$	22,744		3.3%	$	22,066		3.5%	$	678		-0.2%
Amortization of intangibles:
Americas	$	8,363		1.5%	$	6,866		1.3%	$	1,497		0.2%
EMEA		527		0.4%		-		0.0%		527		0.4%
Other		-		-		-		-		-		-
Consolidated	$	8,890		1.3%	$	6,866		1.1%	$	2,024		0.2%

The increase in depreciation was primarily due to the addition of depreciable fixed assets acquired in conjunction with the April 2016 Clearlink acquisition, partially offset by certain fully depreciated fixed assets.

The increase in amortization was primarily due to the addition of intangible assets acquired in conjunction with the April 2016 Clearlink acquisition and the July 2015 Qelp acquisition, partially offset by certain fully amortized intangible assets.

Other Income (Expense)

	Six Months Ended June 30,
(in thousands)	2016		2015		$ Change
Interest income	$	294	$	317	$	(23)
Interest (expense)	$	(2,389)	$	(1,049)	$	(1,340)
Other income (expense):
Foreign currency transaction gains (losses)	$	2,756	$	(1,025)	$	3,781
Gains (losses) on foreign currency derivative instruments not designated as hedges		(1,324)		(97)		(1,227)
Other miscellaneous income (expense)		188		126		62
Total other income (expense)	$	1,620	$	(996)	$	2,616

Interest income remained consistent with the comparable period in 2015.

The increase in interest (expense) was primarily due to $216.0 million in borrowings used to acquire Clearlink in April 2016.

Income Taxes

	Six Months Ended June 30,
(in thousands)	2016		2015		$ Change
Income before income taxes	$	33,197	$	39,030	$	(5,833)
Income taxes	$	10,105	$	10,479	$	(374)
					% Change
Effective tax rate		30.4%		26.8%		3.6%

The increase in the effective tax rate in 2016 compared to 2015 is due to several factors, including fluctuations in earnings among the various jurisdictions in which we operate, none of which are individually material.

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Client Concentration

Our top ten clients accounted for approximately 49.8% and 49.0% of our consolidated revenues in the three months ended June 30, 2016 and 2015, respectively, and approximately 49.1% and 49.2% of our consolidated revenues in the six months ended June 30, 2016 and 2015, respectively.

Total revenues by segment from AT&T Corporation (“AT&T”), a major provider of communication services for which we provide various customer support services over several distinct lines of AT&T businesses, were as follows (in thousands):

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
	Amount		% of Revenues		Amount		% of Revenues		Amount		% of Revenues		Amount		% of Revenues
Americas	$	59,710		19.6%	$	53,422		21.4%	$	110,854		19.5%	$	113,445		22.1%
EMEA		-		0.0%		813		1.4%		-		0.0%		1,563		1.3%
	$	59,710		16.4%	$	54,235		17.6%	$	110,854		16.2%	$	115,008		18.2%

We have multiple distinct contracts with AT&T spread across multiple lines of businesses, which expire at varying dates between 2016 and 2018. We have historically renewed most of these contracts. However, there is no assurance that these contracts will be renewed, or if renewed, will be on terms as favorable as the existing contracts. Each line of business is governed by separate business terms, conditions and metrics. Each line of business also has a separate decision maker such that a loss of one line of business would not necessarily impact our relationship with the client and decision makers on other lines of business. The loss of (or the failure to retain a significant amount of business with) any of our key clients, including AT&T, could have a material adverse effect on our performance. Many of our contracts contain penalty provisions for failure to meet minimum service levels and are cancelable by the client at any time or on short notice. Also, clients may unilaterally reduce their use of our services under our contracts without penalty.

Total revenues by segment from our next largest client, which was in the financial services vertical in each of the periods, were as follows (in thousands):

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
	Amount		% of Revenues		Amount		% of Revenues		Amount		% of Revenues		Amount		% of Revenues
Americas	$	24,495		8.0%	$	14,423		5.8%	$	44,549		7.9%	$	29,218		5.7%
EMEA		-		0.0%		-		0.0%		-		0.0%		-		0.0%
	$	24,495		6.7%	$	14,423		4.7%	$	44,549		6.5%	$	29,218		4.6%

Other than AT&T, total revenues by segment of our clients that each individually represents 10% or greater of that segment’s revenues in each of the periods were as follows (in thousands):

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
	Amount		% of Revenues		Amount		% of Revenues		Amount		% of Revenues		Amount		% of Revenues
Americas	$	-		0.0%	$	-		0.0%	$	-		0.0%	$	-		0.0%
EMEA		17,445		29.5%		16,567		28.7%		46,186		39.2%		34,005		29.0%
	$	17,445		4.8%	$	16,567		5.4%	$	46,186		6.7%	$	34,005		5.4%

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Business Outlook

For the three months ended September 30, 2016, we anticipate the following financial results:

● Revenues in the range of $385.0 million to $393.0 million;

● Effective tax rate of approximately 27.0%;

● Fully diluted share count of approximately 42.2 million;

● Diluted earnings per share in the range of $0.37 to $0.41; and

● Capital expenditures in the range of $25.0 million to $30.0 million

For the twelve months ended December 31, 2016, we anticipate the following financial results:

● Revenues in the range of $1,467.0 million to $1,480.0 million;

● Effective tax rate of approximately 29.0%;

● Fully diluted share count of approximately 42.3 million;

● Diluted earnings per share in the range of $1.39 to $1.45; and

● Capital expenditures in the range of $75.0 million to $80.0 million

Our third quarter and full-year 2016 business outlook, as outlined above, reflects the revenue and earnings contributions associated with the Clearlink acquisition, which closed April 1, 2016.

We are adjusting our revenue and diluted earnings per share outlook in our customer contact management business down. Although demand levels remain healthy across the financial services and communications verticals, which continue to be significant drivers of growth in 2016, the speedy pace of a planned ramp, coupled with client-driven program migration to a large new site and program changes within a site in the US have created some unforeseen short-term operational drag among a few clients. The impact to full-year revenues relative to our May 2016 outlook is expected to be approximately $12.0 million and $0.18 per diluted share, $0.02 of which is related to incremental seat capacity growth due to still-healthy demand.

Our revenues and earnings per share assumptions for the third quarter and full-year 2016 are based on foreign exchange rates as of July 2016. Therefore, the continued volatility in foreign exchange rates between the U.S. Dollar and the functional currencies of the markets we serve could have a further impact, positive or negative, on revenues and earnings per share relative to the business outlook for the third quarter and full-year, as discussed above.

We anticipate total other interest income (expense), net of approximately $(1.7) million for the third quarter and $(4.0) million for the full year 2016. These amounts include the accretion on the Qelp and Clearlink contingent consideration, which is expected to be a total of $(0.3) million in the third quarter of 2016 and approximately $(1.1) million for the year. The amounts, however, exclude the potential impact of any future foreign exchange gains or losses in other income (expense).

Not included in this guidance is the impact of any future acquisitions, share repurchase activities or a potential sale of previously exited customer contact management centers.

Liquidity and Capital Resources

Our primary sources of liquidity are generally cash flows generated by operating activities and from available borrowings under our revolving credit facility. We utilize these capital resources to make capital expenditures associated primarily with our customer contact management services, invest in technology applications and tools to further develop our service offerings and for working capital and other general corporate purposes, including repurchase of our common stock in the open market and to fund acquisitions. In future periods, we intend similar uses of these funds.

On August 18, 2011, the Board authorized us to purchase up to 5.0 million shares of our outstanding common stock (the “2011 Share Repurchase Program”). On March 16, 2016, the Board authorized an increase of 5.0 million

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shares to the 2011 Share Repurchase Program, for a total of 10.0 million. A total of 4.9 million shares have been repurchased under the 2011 Share Repurchase Program since inception. The shares are purchased, from time to time, through open market purchases or in negotiated private transactions, and the purchases are based on factors, including but not limited to, the stock price, management discretion and general market conditions. The 2011 Share Repurchase Program has no expiration date.

During the six months ended June 30, 2016, cash increased $64.6 million from operating activities, $216.0 from proceeds from the issuance of long-term debt, $10.3 million from the settlement of the net investment hedge, $2.1 million from excess tax benefits from stock-based compensation and $0.2 million from other increases. The increase in cash was offset by $205.3 million paid for the Clearlink acquisition (net of cash acquired), $34.4 million used for capital expenditures, $14.0 million to repay long-term debt, $4.9 million to repurchase common stock for minimum tax withholding on equity awards and a $0.2 million investment in restricted cash, resulting in a $37.9 million increase in available cash (including the favorable effects of foreign currency exchange rates on cash and cash equivalents of $3.5 million).

Net cash flows provided by operating activities for the six months ended June 30, 2016 were $64.6 million, compared to $57.1 million for the comparable period in 2015. The $7.5 million increase in net cash flows from operating activities was due to a net increase of $15.5 million in cash flows from assets and liabilities, partially offset by a $5.4 million decrease in net income and a $2.6 million decrease in non-cash reconciling items such as depreciation, amortization, unrealized foreign currency transaction (gains) losses and deferred income taxes. The $15.5 million increase in 2016 from 2015 in cash flows from assets and liabilities was principally a result of a $15.3 million increase in other liabilities, a $6.0 million increase in deferred revenue, a $4.6 million decrease in other assets and a $4.2 million increase in taxes payable, partially offset by a $14.6 million increase in accounts receivable. The $15.3 million increase in the change in other liabilities was primarily due to $12.5 million related to the timing of accrued employee compensation and benefits in the six months ended June 30, 2016 over the comparable period in 2015. The $14.6 million increase in the change in accounts receivable was primarily due to the timing of billings and collections in the six months ended June 30, 2016 over the comparable period in 2015.

Capital expenditures, which are generally funded by cash generated from operating activities, available cash balances and borrowings available under our credit facilities, were $34.4 million for the six months ended June 30, 2016, compared to $19.5 million for the comparable period in 2015, an increase of $14.9 million. In 2016, we anticipate capital expenditures in the range of $75.0 million to $80.0 million, primarily for new seat additions, Enterprise Resource Planning upgrades, facility upgrades, maintenance and systems infrastructure.

On May 12, 2015, we entered into a $440 million revolving credit facility (the “2015 Credit Agreement”) with a group of lenders and KeyBank National Association, as Lead Arranger, Sole Book Runner and Administrative Agent, Swing Line Lender and Issuing Lender (“KeyBank”). The 2015 Credit Agreement is subject to certain borrowing limitations and includes certain customary financial and restrictive covenants. At June 30, 2016, we were in compliance with all loan requirements of the 2015 Credit Agreement and had $272.0 million of outstanding borrowings under this facility. On April 1, 2016, we borrowed $216.0 million under our 2015 Credit Agreement in connection with the acquisition of Clearlink. See Note 2, Acquisitions, of “Notes to Condensed Consolidated Financial Statements” for further information.

Our credit agreements had an average daily utilization of $278.8 million and $70.2 million during the three months ended June 30, 2016 and 2015, respectively, and $174.4 million and $72.2 million during the six months ended June 30, 2016 and 2015, respectively. During the three months ended June 30, 2016 and 2015, the related interest expense, including the commitment fee and excluding the amortization of deferred loan fees, was $1.1 million and $0.3 million, respectively, which represented weighted average interest rates of 1.6% and 1.8%, respectively. During the six months ended June 30, 2016 and 2015, the related interest expense, including the commitment fee and excluding the amortization of deferred loan fees, was $1.5 million and $0.6 million, respectively, which represented weighted average interest rates of 1.9% and 1.8%, respectively.

The 2015 Credit Agreement includes a $200 million alternate-currency sub-facility, a $10 million swingline sub-facility and a $35 million letter of credit sub-facility, and may be used for general corporate purposes including acquisitions, share repurchases, working capital support and letters of credit, subject to certain limitations. We are not currently aware of any inability of our lenders to provide access to the full commitment of funds that exist under the 2015 Credit Agreement, if necessary. However, there can be no assurance that such facility will be available to us, even though it is a binding commitment of the financial institutions. The 2015 Credit Agreement will mature on May 12, 2020.

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Borrowings under the 2015 Credit Agreement bear interest at the rates set forth in the 2015 Credit Agreement. In addition, we are required to pay certain customary fees, including a commitment fee determined quarterly based on our leverage ratio and due quarterly in arrears as calculated on the average unused amount of the 2015 Credit Agreement. The commitment fee was 0.125% for the three and six months ended June 30, 2016 and 2015.

The 2015 Credit Agreement is guaranteed by all of our existing and future direct and indirect material U.S. subsidiaries and secured by a pledge of 100% of the non-voting and 65% of the voting capital stock of all of our direct foreign subsidiaries and those of the guarantors.

We are currently under audit in several tax jurisdictions. We received assessments for the Canadian 2003-2009 audit. Requests for Competent Authority Assistance were filed with both the Canadian Revenue Agency and the U.S. Internal Revenue Service and we paid mandatory security deposits to Canada as part of this process. The total amount of deposits, net of the effects of foreign exchange rate adjustments, are $14.3 million and $13.4 million as of June 30, 2016 and December 31, 2015, respectively, and are included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets. Although the outcome of examinations by taxing authorities is always uncertain, we believe we are adequately reserved for these audits and resolution is not expected to have a material impact on our financial condition and results of operations.

As part of the April 2016 Clearlink acquisition, we assumed contingent consideration liabilities related to four separate acquisitions made by Clearlink in 2015 and 2016, prior to the Merger. The fair value of the contingent consideration related to these previous acquisitions was $2.8 million as of April 1, 2016 and was based on achieving targets primarily tied to revenues for varying periods of time during 2016 and 2017. The estimated future value of the contingent consideration is $3.0 million and is expected to be paid on varying dates through July 2017.

In July 2015, we completed the acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”) pursuant to the definitive Share Sale and Purchase Agreement, dated July 2, 2015. The purchase price of $15.8 million was funded through cash on hand of $9.8 million and contingent consideration of $6.0 million. The estimated future value of the contingent consideration is $9.1 million and is expected to be paid over a three year period.

As of June 30, 2016, we had $273.2 million in cash and cash equivalents, of which approximately 89.2%, or $243.8 million, was held in international operations and is deemed to be indefinitely reinvested offshore. These funds may be subject to additional taxes if repatriated to the United States, including withholding tax applied by the country of origin and an incremental U.S. income tax, net of allowable foreign tax credits. There are circumstances where we may be unable to repatriate some of the cash and cash equivalents held by our international operations due to country restrictions. We do not intend nor currently foresee a need to repatriate these funds. We expect our current domestic cash levels and cash flows from operations to be adequate to meet our domestic anticipated working capital needs, including investment activities such as capital expenditures and debt repayment for the next twelve months and the foreseeable future. However, from time to time, we may borrow funds under our 2015 Credit Agreement as a result of the timing of our working capital needs, including capital expenditures. Additionally, we expect our current foreign cash levels and cash flows from foreign operations to be adequate to meet our foreign anticipated working capital needs, including investment activities such as capital expenditures for the next twelve months and the foreseeable future.

If we should require more cash in the U.S. than is provided by our domestic operations for significant discretionary unforeseen activities such as acquisitions of businesses and share repurchases, we could elect to repatriate future foreign earnings and/or raise capital in the U.S through additional borrowings or debt/equity issuances. These alternatives could result in higher effective tax rates, interest expense and/or dilution of earnings. We have borrowed funds domestically and continue to have the ability to borrow additional funds domestically at reasonable interest rates.

Our cash resources could also be affected by various risks and uncertainties, including but not limited to, the risks described in our Annual Report on Form 10-K for the year ended December 31, 2015.

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Off-Balance Sheet Arrangements and Other

As of June 30, 2016, we did not have any material commercial commitments, including guarantees or standby repurchase obligations, or any relationships with unconsolidated entities or financial partnerships, including entities often referred to as structured finance or special purpose entities or variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

From time to time, during the normal course of business, we may make certain indemnities, commitments and guarantees under which we may be required to make payments in relation to certain transactions. These include, but are not limited to: (i) indemnities to clients, vendors and service providers pertaining to claims based on negligence or willful misconduct and (ii) indemnities involving breach of contract, the accuracy of representations and warranties, or other liabilities assumed by us in certain contracts. In addition, we have agreements whereby we will indemnify certain officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The indemnification period covers all pertinent events and occurrences during the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have director and officer insurance coverage that limits our exposure and enables us to recover a portion of any future amounts paid. We believe the applicable insurance coverage is generally adequate to cover any estimated potential liability under these indemnification agreements. The majority of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential for future payments we could be obligated to make. We have not recorded any liability for these indemnities, commitments and other guarantees in the accompanying Condensed Consolidated Balance Sheets. In addition, we have some client contracts that do not contain contractual provisions for the limitation of liability, and other client contracts that contain agreed upon exceptions to limitation of liability. We have not recorded any liability in the accompanying Condensed Consolidated Balance Sheets with respect to any client contracts under which we have or may have unlimited liability.

Contractual Obligations

The following table summarizes the material changes to our contractual obligations as of June 30, 2016, including the amounts that were assumed upon the acquisition of Clearlink in April 2016 and the related debt incurred in connection with the acquisition, and the effect these obligations are expected to have on liquidity and cash flow in future periods (in thousands):

	Payments Due By Period
	Total		Less Than 1 Year		1 - 3 Years		3 - 5 Years		After 5 Years		Other
Operating leases (1)	$	75,288	$	3,635	$	18,435	$	18,303	$	34,915	$	-
Purchase obligations (2)		7,914		5,513		2,401		-		-		-
Accounts payable (3)		870		870		-		-		-		-
Accrued employee compensation and benefits (3)		2,277		2,277		-		-		-		-
Other accrued expenses and current liabilities (4)		7,051		7,051		-		-		-		-
Long-term debt (5)		202,000		-		-		202,000		-		-
Other long-term liabilities (4)		1,274		-		1,274		-		-		-
	$	296,674	$	19,346	$	22,110	$	220,303	$	34,915	$	-

⁽¹⁾  Amounts represent the change in expected cash payments under our operating leases. See Note 14, Commitments and Loss Contingency, to the accompanying Condensed Consolidated Financial Statements.

⁽²⁾  Amounts represent the change in expected cash payments under our purchase obligations, which include agreements to purchase goods or services that are enforceable and legally binding on us and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancelable without penalty. See Note 14, Commitments and Loss Contingency, to the accompaying Condensed Consolidated Financial Statements.

⁽³⁾  Amounts represent Clearlink’s accounts payable and accrued employee compensation and benefits for amounts due vendors and employees payable within one year. See Note 2, Acquisitions, to the accompaying Condensed Consolidated Financial Statements.

⁽⁴⁾  Amounts represent Clearlink’s other accrued expenses and current liabilities, and other long-term liabilities for contingent consideration, customer deposits and other liabilities, and excluding non-cash liabilities. See Note 2, Acquisitions, to the accompaying Condensed Consolidated Financial Statements.

⁽⁵⁾  Amounts represent the change in outstanding borrowings. See Note 2, Acquisitions, and Note 10, Borrowings, to the accompanying Condensed Consolidated Financial Statements.

Except for the contractual obligations mentioned above, there have not been any material changes to the outstanding contractual obligations from the disclosure in our Annual Report on Form 10-K as of and for the year ended December 31, 2015 filed on February 29, 2016.

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Critical Accounting Estimates

See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report and Form 10-K for the year ended December 31, 2015 filed on February 29, 2016 for a discussion of our critical accounting estimates.

There have been no material changes to our critical accounting estimates in 2016.

New Accounting Standards Not Yet Adopted

See Note 1, Overview and Basis of Presentation, of the accompanying “Notes to Condensed Consolidated Financial Statements” for information related to recent accounting pronouncements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Foreign Currency Risk

Our earnings and cash flows are subject to fluctuations due to changes in currency exchange rates. We are exposed to foreign currency exchange rate fluctuations when subsidiaries with functional currencies other than the U.S. Dollar (“USD”) are translated into our USD consolidated financial statements. As exchange rates vary, those results, when translated, may vary from expectations and adversely impact profitability. The cumulative translation effects for subsidiaries using functional currencies other than USD are included in “Accumulated other comprehensive income (loss)” in shareholders’ equity. Movements in non-USD currency exchange rates may negatively or positively affect our competitive position, as exchange rate changes may affect business practices and/or pricing strategies of non-U.S. based competitors.

We employ a foreign currency risk management program that periodically utilizes derivative instruments to protect against unanticipated fluctuations in certain earnings and cash flows caused by volatility in foreign currency exchange (“FX”) rates. We also utilize derivative contracts to hedge intercompany receivables and payables that are denominated in a foreign currency and to hedge net investments in foreign operations.

We serve a number of U.S.-based clients using customer contact management center capacity in The Philippines and Costa Rica, which are within our Americas segment. Although the contracts with these clients are priced in USDs, a substantial portion of the costs incurred to render services under these contracts are denominated in Philippine Pesos (“PHP”) and Costa Rican Colones (“CRC”), which represent FX exposures. Additionally, our EMEA segment services clients in Hungary and Romania where the contracts are priced in Euros (“EUR”), with a substantial portion of the costs incurred to render services under these contracts denominated in Hungarian Forints (“HUF”) and Romanian Leis (“RON”).

In order to hedge a portion of our anticipated cash flow requirements denominated in PHP, CRC, HUF and RON, we had outstanding forward contracts and options as of June 30, 2016 with counterparties through September 2017 with notional amounts totaling $90.6 million. As of June 30, 2016, we had net total derivative assets associated with these contracts with a fair value of $0.5 million, which will settle within the next 15 months. If the USD was to weaken against the PHP and CRC and the EUR was to weaken against the HUF and RON by 10% from current period-end levels, we would incur a loss of approximately $7.4 million on the underlying exposures of the derivative instruments. However, this loss would be mitigated by corresponding gains on the underlying exposures.

We had forward exchange contracts with notional amounts totaling $76.9 million to hedge net investments in our foreign operations. The purpose of these derivative instruments is to protect against the risk that the net assets of certain foreign subsidiaries will be adversely affected by changes in exchange rates and economic exposures related to our foreign currency-based investments in these subsidiaries. As of June 30, 2016, the fair value of these derivatives was a net liability of $0.9 million. The potential loss in fair value at June 30, 2016, for these contracts resulting from a hypothetical 10% adverse change in the foreign currency exchange rates is approximately $7.7 million. However, this loss would be mitigated by corresponding gains on the underlying exposures.

We had forward exchange contracts with notional amounts totaling $58.7 million that are not designated as hedges.

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The purpose of these derivative instruments is to protect against FX volatility pertaining to intercompany receivables and payables, and other assets and liabilities that are denominated in currencies other than our subsidiaries’ functional currencies. As of June 30, 2016, the fair value of these derivatives was a net liability of $0.4 million. The potential loss in fair value at June 30, 2016, for these contracts resulting from a hypothetical 10% adverse change in the foreign currency exchange rates is approximately $2.0 million. However, this loss would be mitigated by corresponding gains on the underlying exposures.

We had embedded derivative contracts with notional amounts totaling $11.6 million that are not designated as hedges. As of June 30, 2016, the fair value of these derivatives was a net asset of less than $0.1 million. The potential loss in fair value at June 30, 2016, for these contracts resulting from a hypothetical 10% adverse change in the foreign currency exchange rates is approximately $1.8 million. However, this loss would be mitigated by corresponding gains on the underlying exposures.

We evaluate the credit quality of potential counterparties to derivative transactions and only enter into contracts with those considered to have minimal credit risk. We periodically monitor changes to counterparty credit quality as well as our concentration of credit exposure to individual counterparties.

We do not use derivative financial instruments for speculative trading purposes, nor do we hedge our foreign currency exposure in a manner that entirely offsets the effects of changes in foreign exchange rates.

As a general rule, we do not use financial instruments to hedge local currency denominated operating expenses in countries where a natural hedge exists. For example, in many countries, revenue from the local currency services substantially offsets the local currency denominated operating expenses.

Interest Rate Risk

Our exposure to interest rate risk results from variable debt outstanding under our revolving credit facility. We pay interest on outstanding borrowings at interest rates that fluctuate based upon changes in various base rates. As of June 30, 2016, we had $272.0 million in borrowings outstanding under the revolving credit facility. Based on our level of variable rate debt outstanding during the three and six months ended June 30, 2016, a 1.0% increase in the weighted average interest rate, which generally equals the LIBOR rate plus an applicable margin, would have had an impact of $0.7 million and $0.9 million, respectively, on our results of operations.

We have not historically used derivative instruments to manage exposure to changes in interest rates.

Fluctuations in Quarterly Results

For the year ended December 31, 2015, quarterly revenues as a percentage of total consolidated annual revenues were approximately 25%, 24%, 25% and 26%, respectively, for each of the respective quarters of the year. We have experienced and anticipate that in the future we will experience variations in quarterly revenues. The variations are due to the timing of new contracts and renewal of existing contracts, the timing and frequency of client spending for customer contact management services, non-U.S. currency fluctuations, and the seasonal pattern of customer contact management support and fulfillment services.

Item 4.  Controls and Procedures

As of June 30, 2016, under the direction of our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a – 15(e) under the Securities Exchange Act of 1934, as amended. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed in our SEC reports is recorded, processed, summarized and reported within the time period specified by the SEC’s rules and forms, and is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. We concluded that, as of June 30, 2016, our disclosure controls and procedures were effective at the reasonable assurance level.

There were no changes in our internal controls over financial reporting during the quarter ended June 30, 2016 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting, except for the change discussed under “Changes in Internal Control over Financial Reporting” below.

Changes in Internal Control over Financial Reporting

On April 1, 2016, we acquired Clearlink. We are currently integrating policies, processes, people, technology and operations for the combined companies. Management will continue to evaluate our internal control over financial reporting as we execute our integration activities.

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Part II. OTHER INFORMATION

Item 1.  Legal Proceedings

From time to time, we are involved in legal actions arising in the ordinary course of business. With respect to these matters, we believe that we have adequate legal defenses and/or provided adequate accruals for related costs such that the ultimate outcome will not have a material adverse effect on our future financial position or results of operations.

Item 1A.  Risk Factors

For risk factors, see Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year ended December 31, 2015 filed on February 29, 2016.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

Below is a summary of stock repurchases for the three months ended June 30, 2016 (in thousands, except average price per share). See Note 13, Earnings Per Share, of “Notes to Condensed Consolidated Financial Statements” for information regarding our stock repurchase program.

					Total Number of		Maximum Number
	Total		Average		Shares Purchased		of Shares That May
	Number of		Price		as Part of Publicly		Yet Be Purchased
	Shares		Paid Per		Announced Plans		Under Plans or
Period	Purchased (1)		Share		or Programs		Programs (1)
April 1, 2016 - April 30, 2016		-		$      -		-		5,138
May 1, 2016 - May 31, 2016		-		$      -		-		5,138
June 1, 2016 - June 30, 2016		-		$      -		-		5,138
Total		-				-		5,138
(1)         The total number of shares approved for repurchase under the 2011 Share Repurchase Plan dated August 18, 2011, as amended on March 16, 2016, is 10.0 million. The 2011 Share Repurchase Plan has no expiration date.

Item 3.  Defaults Upon Senior Securities

None.

Item 4.  Mine Safety Disclosures

Not Applicable.

Item 5.  Other Information

None.

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Item 6.  Exhibits

The following documents are filed as an exhibit to this Report:

15	Awareness letter.
31.1	Certification of Chief Executive Officer, pursuant to Rule 13a-14(a).
31.2	Certification of Chief Financial Officer, pursuant to Rule 13a-14(a).
32.1	Certification of Chief Executive Officer, pursuant to 18 U.S.C. §1350.
32.2	Certification of Chief Financial Officer, pursuant to 18 U.S.C. §1350.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SYKES ENTERPRISES, INCORPORATED
	(Registrant)
Date: August 2, 2016	By:   /s/ John Chapman
	John Chapman
	Executive Vice President and Chief Financial Officer
	(Principal Financial and Accounting Officer)

59

EXHIBIT INDEX

Exhibit     Number
15	Awareness letter.
31.1	Certification of Chief Executive Officer, pursuant to Rule 13a-14(a).
31.2	Certification of Chief Financial Officer, pursuant to Rule 13a-14(a).
32.1	Certification of Chief Executive Officer, pursuant to 18 U.S.C. §1350.
32.2	Certification of Chief Financial Officer, pursuant to 18 U.S.C. §1350.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

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EX-15

Exhibit 15

August 2, 2016

Sykes Enterprises, Incorporated

400 North Ashley Drive

Tampa, Florida

We have reviewed, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the unaudited interim financial information of Sykes Enterprises, Incorporated and subsidiaries for the periods ended June 30, 2016, and 2015, as indicated in our report dated August 2, 2016; because we did not perform an audit, we expressed no opinion on that information.

We are aware that our report referred to above, which is included in your Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, is incorporated by reference in Registration Statement No. 333-178670 on Form S-8.

We also are aware that the aforementioned report, pursuant to Rule 436(c) under the Securities Act of 1933, is not considered a part of the Registration Statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of that Act.

/s/ Deloitte & Touche LLP

Tampa, Florida

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a)

I, Charles E. Sykes, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sykes Enterprises, Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter (the company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: August 2, 2016

/s/ Charles E. Sykes

Charles E. Sykes, President, Chief Executive Officer and Director

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a)

I, John Chapman, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sykes Enterprises, Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the company’s most recent fiscal quarter (the company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: August 2, 2016

/s/ John Chapman

John Chapman, Executive Vice President and Chief Financial Officer     

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Quarterly Report of Sykes Enterprises, Incorporated (the “Company”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Charles E. Sykes, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 2, 2016	By:	/s/ Charles E. Sykes
		Charles E. Sykes
		President and Chief Executive Officer and Director

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Quarterly Report of Sykes Enterprises, Incorporated (the “Company”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John Chapman, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 2, 2016	By:	/s/  John Chapman
		John Chapman
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 22, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Trading Symbol	SYKE
Entity Registrant Name	SYKES ENTERPRISES INC
Entity Central Index Key	0001010612
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		43,042,835

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 273,214	$ 235,358
Receivables, net	296,446	277,096
Prepaid expenses	21,735	17,321
Other current assets	14,091	33,262
Total current assets	605,486	563,037
Property and equipment, net	138,230	111,962
Goodwill, net	268,149	195,733
Intangibles, net	163,916	50,896
Deferred charges and other assets	43,210	26,144
Total assets	1,218,991	947,772
Current liabilities:
Accounts payable	25,951	23,255
Accrued employee compensation and benefits	91,981	77,246
Current deferred income tax liabilities		1,120
Income taxes payable	1,350	1,959
Deferred revenue	37,681	28,119
Other accrued expenses and current liabilities	33,162	21,476
Total current liabilities	190,125	153,175
Deferred grants	4,475	4,810
Long-term debt	272,000	70,000
Long-term income tax liabilities	19,721	18,512
Other long-term liabilities	23,776	22,595
Total liabilities	510,097	269,092
Commitments and loss contingency (Note 14)
Shareholders' equity:
Preferred stock, $0.01 par value per share, 10,000 shares authorized; no shares issued and outstanding
Common stock, $0.01 par value per share, 200,000 shares authorized; 43,043 and 42,785 shares issued, respectively	430	428
Additional paid-in capital	278,395	275,380
Retained earnings	481,417	458,325
Accumulated other comprehensive income (loss)	(49,414)	(53,662)
Treasury stock at cost: 117 and 113 shares, respectively	(1,934)	(1,791)
Total shareholders' equity	708,894	678,680
Total liabilities and shareholders' equity	$ 1,218,991	$ 947,772

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	43,043,000	42,785,000
Treasury stock, shares	117,000	113,000

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Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenues	$ 364,402	$ 307,453	$ 685,148	$ 631,138
Operating expenses:
Direct salaries and related costs	239,442	202,143	444,997	416,070
General and administrative	94,335	72,651	174,845	145,378
Depreciation, net	11,960	11,007	22,744	22,066
Amortization of intangibles	5,263	3,435	8,890	6,866
Total operating expenses	351,000	289,236	651,476	590,380
Income from operations	13,402	18,217	33,672	40,758
Other income (expense):
Interest income	141	151	294	317
Interest (expense)	(1,581)	(610)	(2,389)	(1,049)
Other income (expense)	1,067	(167)	1,620	(996)
Total other income (expense)	(373)	(626)	(475)	(1,728)
Income before income taxes	13,029	17,591	33,197	39,030
Income taxes	3,891	4,679	10,105	10,479
Net income	$ 9,138	$ 12,912	$ 23,092	$ 28,551
Net income per common share:
Basic	$ 0.22	$ 0.31	$ 0.55	$ 0.68
Diluted	$ 0.22	$ 0.31	$ 0.55	$ 0.67
Weighted average common shares outstanding:
Basic	41,970	42,008	41,838	42,095
Diluted	42,101	42,216	42,101	42,328

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 9,138	$ 12,912	$ 23,092	$ 28,551
Other comprehensive income (loss), net of taxes:
Foreign currency translation gain (loss), net of taxes	(9,599)	7,058	4,300	(20,066)
Unrealized gain (loss) on net investment hedges, net of taxes	1,497	(1,135)	(433)	2,768
Unrealized actuarial gain (loss) related to pension liability, net of taxes	(35)	(20)	(26)	(28)
Unrealized gain (loss) on cash flow hedging instruments, net of taxes	(1,996)	(347)	434	1,068
Unrealized gain (loss) on postretirement obligation, net of taxes	(14)	59	(27)	44
Other comprehensive income (loss), net of taxes	(10,147)	5,615	4,248	(16,214)
Comprehensive income (loss)	$ (1,009)	$ 18,527	$ 27,340	$ 12,337

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Condensed Consolidated Statements of Changes in Shareholders' Equity - 6 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]
Beginning Balance at Dec. 31, 2015	$ 678,680	$ 428	$ 275,380	$ 458,325	$ (53,662)	$ (1,791)
Beginning Balance, shares at Dec. 31, 2015		42,785
Stock-based compensation expense	5,729		5,729
Excess tax benefit (deficiency) from stock-based compensation	2,060		2,060
Issuance of common stock under equity award plans, net of shares withheld for employee taxes	(4,915)	$ 2	(4,774)			(143)
Issuance of common stock under equity award plans, net of shares withheld for employee taxes, shares		258
Comprehensive income (loss)	27,340			23,092	4,248
Ending Balance at Jun. 30, 2016	$ 708,894	$ 430	$ 278,395	$ 481,417	$ (49,414)	$ (1,934)
Ending Balance, shares at Jun. 30, 2016		43,043

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 23,092	$ 28,551
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	23,059	22,458
Amortization of intangibles	8,890	6,866
Amortization of deferred grants	(444)	(441)
Unrealized foreign currency transaction (gains) losses, net	(2,316)	(1,093)
Stock-based compensation expense	5,729	3,284
Excess tax (benefit) from stock-based compensation	(2,060)	(169)
Deferred income tax provision (benefit)	(2,219)	3,127
Unrealized (gains) losses on financial instruments, net	611	88
Amortization of deferred loan fees	134	269
Imputed interest expense and fair value adjustments to contingent consideration	509
Other	(166)	(87)
Changes in assets and liabilities, net of acquisition:
Receivables	(1,581)	13,029
Prepaid expenses	(2,952)	(1,212)
Other current assets	(2,316)	(11,895)
Deferred charges and other assets	(1,509)	1,753
Accounts payable	(3,145)	(3,487)
Income taxes receivable / payable	273	(3,992)
Accrued employee compensation and benefits	12,896	363
Other accrued expenses and current liabilities	3,009	1,777
Deferred revenue	3,623	(2,341)
Other long-term liabilities	1,501	256
Net cash provided by operating activities	64,618	57,104
Cash flows from investing activities:
Capital expenditures	(34,409)	(19,476)
Cash paid for business acquisition, net of cash acquired	(205,324)
Proceeds from sale of property and equipment	37	53
Investment in restricted cash	(228)	(5)
Release of restricted cash	77
Proceeds from property and equipment insurance settlement		500
Net investment hedge settlement	10,339
Net cash (used for) investing activities	(229,508)	(18,928)
Cash flows from financing activities:
Payments of long-term debt	(14,000)	(10,000)
Proceeds from issuance of long-term debt	216,000
Excess tax benefit from stock-based compensation	2,060	169
Cash paid for repurchase of common stock		(11,969)
Proceeds from grants	89	472
Shares repurchased for minimum tax withholding on equity awards	(4,915)	(1,269)
Cash paid for loan fees related to long-term debt		(962)
Net cash provided by (used for) financing activities	199,234	(23,559)
Effects of exchange rates on cash and cash equivalents	3,512	(7,404)
Net increase (decrease) in cash and cash equivalents	37,856	7,213
Cash and cash equivalents - beginning	235,358	215,137
Cash and cash equivalents - ending	273,214	222,350
Supplemental disclosures of cash flow information:
Cash paid during period for interest	1,497	735
Cash paid during period for income taxes	11,229	14,231
Non-cash transactions:
Property and equipment additions in accounts payable	6,990	4,324
Unrealized gain (loss) on postretirement obligation in accumulated other comprehensive income (loss)	(27)	44
Shares repurchased for minimum tax withholding on common stock and restricted stock under equity awards included in current liabilities	$ 51	$ 126

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Overview and Basis of Presentation

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Overview and Basis of Presentation

Note 1. Overview and Basis of Presentation

Business — Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) provides comprehensive outsourced customer contact management solutions and services in the business process outsourcing arena to companies, primarily within the communications, financial services, technology/consumer, transportation and leisure, and healthcare industries. SYKES provides flexible, high-quality outsourced customer contact management services (with an emphasis on inbound technical support, demand generation and customer service), which includes customer assistance, healthcare and roadside assistance, technical support, and product and service sales to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels encompassing phone, e-mail, social media, text messaging, chat and digital self-service. SYKES complements its outsourced customer contact management services with various enterprise support services in the United States that encompass services for a company’s internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services, which includes order processing, payment processing, inventory control, product delivery and product returns handling. The Company has operations in two reportable segments entitled (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, in which the client base is primarily companies in the United States that are using the Company’s services to support their customer management needs; and (2) EMEA, which includes Europe, the Middle East and Africa.

Acquisitions

On April 1, 2016, the Company completed the acquisition of Clear Link Holdings, LLC (“Clearlink”), pursuant to a definitive Agreement and Plan of Merger (the “Merger Agreement”), dated March 6, 2016. The Company has reflected the operating results in the Condensed Consolidated Statements of Operations since April 1, 2016. See Note 2, Acquisitions, for additional information on the acquisition.

In July 2015, the Company completed the acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”), pursuant to a definitive Share Sale and Purchase Agreement, dated July 2, 2015. The Company has reflected the operating results in the Condensed Consolidated Statements of Operations since July 2, 2015. See Note 2, Acquisitions, for additional information on the acquisition.

Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2016. For further information, refer to the consolidated financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the Securities and Exchange Commission (“SEC”) on February 29, 2016.

Principles of Consolidation — The condensed consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates — The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Subsequent Events — Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. There were no material subsequent events that required recognition or disclosure in the accompanying condensed consolidated financial statements.

Customer-Acquisition Advertising Costs — The Company utilizes direct-response advertising the primary purpose of which is to elicit purchases from its clients’ customers. These costs are capitalized when they are expected to result in probable future benefits and are amortized over the period during which future benefits are expected to be received, which is generally less than one month. All other advertising costs are expensed as incurred. As of June 30, 2016, the Company had less than $0.1 million of capitalized direct-response advertising costs included in “Prepaid expenses” in the accompanying Condensed Consolidated Balance Sheet (none in 2015). Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Income Statements for both the three and six months ended June 30, 2016 were $8.0 million (none in 2015).

Reclassifications — Certain balances in the prior period have been reclassified to conform to current period presentation.

New Accounting Standards Not Yet Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The amendments in ASU 2014-09 outline a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and indicate that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date” (“ASU 2015-14”). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. An entity should apply the amendments using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company is currently evaluating the methods of adoption and the impact that the adoption of ASU 2014-09 may have on its financial condition, results of operations and cash flows.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). These amendments modify how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such, these investments may be measured at cost. These amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect the adoption of ASU 2016-01 to materially impact its financial condition, results of operations and cash flows.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840 “Leases”. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its financial condition, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815) – Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (“ASU 2016-05”). These amendments clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. These amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Entities have the option to apply the amendments on either a prospective basis or a modified retrospective basis. The Company is evaluating the methods of adoption but does not expect the adoption of ASU 2016-05 to materially impact its financial condition, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU 2016-08”). These amendments clarify the implementation guidance on principal versus agent considerations and require entities to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing” (“ASU 2016-10”). These amendments clarify the identification of performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition and Derivatives and Hedging: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 Emerging Issues Task Force Meeting (“EITF”)” (“ASU 2016-11”). These rescissions include changes to topics pertaining to accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”). These amendments clarify the guidance in certain narrow areas and add several practical expedients. These ASUs affect the guidance in ASU 2014-09, which is not yet effective. The effective date and transition requirements for ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12 are the same as the effective date and transition requirements of ASU 2014-09, as updated by ASU 2015-14. The Company is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). These amendments are intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. These amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. Entities have the option to apply the amendments on either a prospective basis or a modified retrospective basis. The Company is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). These amendments require measurement and recognition of expected versus incurred credit losses for financial assets held. These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

New Accounting Standards Recently Adopted

In June 2014, the FASB issued ASU 2014-12, “Compensation – Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification (“ASC”) Topic 718, “Compensation — Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. These amendments, adopted prospectively, were effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The adoption of ASU 2014-12 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20) Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). The amendments eliminate from U.S. GAAP the concept of extraordinary items as part of the FASB’s initiative to reduce complexity in accounting standards. These amendments, adopted prospectively, were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-01 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) Amendments to the Consolidation Analysis)” (“ASU 2015-02”). The amendments are intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. These amendments affect the consolidation evaluation for reporting organizations. In addition, the amendments simplify and improve current U.S. GAAP by reducing the number of consolidation models. These amendments, adopted retrospectively, were effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-02 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. These amendments were effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of ASU 2015-03 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). These amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. These amendments, adopted prospectively, were effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The adoption of ASU 2015-05 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). These amendments eliminate the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. These amendments, adopted prospectively, were effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The adoption of ASU 2015-16 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). These amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The existing requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by these amendments. These amendments, adopted prospectively, were effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of ASU 2015-17 on January 1, 2016 resulted in the reclassification of $12.0 million of current deferred tax assets included in “Other current assets” and $1.1 million of current deferred tax liabilities included in “Current deferred income tax liabilities” to noncurrent deferred income tax assets and liabilities. All future deferred tax assets and liabilities will be classified as noncurrent. No prior periods were adjusted.

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Acquisitions

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Acquisitions

Note 2. Acquisitions

Clearlink

On April 1, 2016, the Company acquired 100% of the outstanding membership units of Clearlink through a merger of Clearlink with and into a subsidiary of the Company (the “Merger”). Clearlink, with its operations located in the United States, is an inbound demand generation and sales conversion platforms serving numerous Fortune 500 business-to-consumer and business-to-business clients across various industries and subsectors, including telecommunications, satellite television, home security and insurance. The results of Clearlink’s operations have been included in the Company’s consolidated financial statements since April 1, 2016 (the “Clearlink acquisition date”). The strategic acquisition of Clearlink expands the Company’s suite of service offerings while creating differentiation in the marketplace, broadening its addressable market opportunity and extending executive level reach within the Company’s existing clients’ organization. This resulted in the Company paying a substantial premium for Clearlink resulting in the recognition of goodwill. Pursuant to Federal income tax laws, intangible assets and goodwill from the Clearlink acquisition are deductible over a 15 year amortization period.

The Clearlink purchase price totaled $207.9 million, consisting of the following:

	Total
Cash (1)	$	209,186
Working capital adjustment		(1,278)
	$	207,908
(1) Funded through borrowings under the Company’s credit agreement. See Note 10, Borrowings, for more information.

Approximately $2.6 million of the purchase price was placed in an escrow account as security for the indemnification obligations of Clearlink’s members under the merger agreement.

The Company accounted for the Clearlink acquisition in accordance with ASC 805 (“ASC 805”) “Business Combinations”, whereby the purchase price paid was allocated to the tangible and identifiable intangibles acquired and liabilities assumed from Clearlink based on their estimated fair values as of the closing date. Certain amounts are provisional and are subject to change, including the finalization of the working capital adjustment, tax analysis of the assets acquired and liabilities assumed, intangibles and goodwill. The Company expects to complete its analysis of the purchase price allocation during the fourth quarter of 2016 and the resulting adjustments will be recorded in accordance with ASU 2015-16 “Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments.”

The following table summarizes the estimated Clearlink acquisition date fair values of the assets acquired and liabilities assumed, all included in the Americas segment (in thousands):

	April 1, 2016
Cash and cash equivalents	$	2,584
Receivables (1)		16,801
Prepaid expenses		1,553
Total current assets		20,938
Property and equipment		12,869
Goodwill		70,223
Intangibles		121,400
Deferred charges and other assets		229
Accounts payable		(3,564)
Accrued employee compensation and benefits		(1,610)
Deferred revenue		(4,620)
Other accrued expenses and current liabilities		(6,324)
Total current liabilities		(16,118)
Other long-term liabilities		(1,633)
	$	207,908
(1) The fair value equals the gross contractual value of the receivables.

Fair values are based on management’s estimates and assumptions including variations of the income approach, the cost approach and the market approach.

The following table presents the Company’s purchased intangibles assets as of April 1, 2016, the Clearlink acquisition date (in thousands):

	Amount Assigned		Weighted Average  Amortization Period  (years)
Customer relationships	$	63,800		13
Trade name		2,400		7
Non-compete agreements		1,800		3
Proprietary software		700		5
Indefinite-lived domain names		52,700		N/A
	$	121,400		7

The amount of Clearlink’s revenues and net income since the April 1, 2016 acquisition date, included in the Company’s Condensed Consolidated Statements of Operations for both the three and six months ended June 30, 2016, were as follows (in thousands):

	From April 1, 2016   Through June 30, 2016
Revenues	$	36,362
Net income	$	791

The following table presents the unaudited pro forma combined revenues and net earnings as if Clearlink had been included in the consolidated results of the Company for the entire three and six month periods ended June 30, 2016 and 2015. The pro forma financial information is not indicative of the results of operations that would have been achieved if the acquisition and related borrowings had taken place on January 1, 2016 and 2015 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Revenues	$	364,403	$	337,833	$	718,977	$	690,073
Net income	$	10,975	$	13,398	$	25,895	$	29,450
Net income per common share:
Basic	$	0.26	$	0.32	$	0.62	$	0.70
Diluted	$	0.26	$	0.32	$	0.62	$	0.70

These amounts have been calculated to reflect the additional depreciation, amortization, interest expense and rent expense that would have been incurred assuming the fair value adjustments and borrowings occurred on January 1, 2016 and January 1, 2015, together with the consequential tax effects. In addition, these amounts exclude costs incurred which are directly attributable to the acquisition, and which do not have a continuing impact on the combined companies’ operating results. Included in these costs are advisory and legal costs, net of the tax effects.

Acquisition-related costs associated with Clearlink in the accompanying Condensed Consolidated Statement of Operations were as follows (none in 2015) (in thousands):

		Three Months Ended   June 30, 2016		Six Months Ended    June 30, 2016
Transaction and integration costs: (1)
	Americas	$	29	$	29
	Other		2,934		4,376
	(1)Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

Qelp

On July 2, 2015, the Company’s wholly-owned subsidiaries, Sykes Enterprises Incorporated B.V. and Sykes Enterprises Incorporated Holdings B.V., both Netherlands companies, entered into a definitive Share Sale and Purchase Agreement (the “Purchase Agreement”) with MobileTimes B.V., Yarra B.V., From The Mountain Consultancy B.V. and Sticting Administratiekantoor Qelp (the “Sellers”), all of which are Netherlands companies, to acquire all of the outstanding shares of Qelp B.V. and its wholly owned subsidiary (together, known as “Qelp”.) The strategic acquisition of Qelp (the “Qelp acquisition”) was to further broaden and strengthen the Company’s service portfolio around digital self-service customer support and extend its reach into adjacent, but complementary, markets. Pursuant to Federal income tax regulations, no amount of intangibles or goodwill from this acquisition will be deductible for tax purposes. The results of Qelp’s operations have been included in the Company’s consolidated financial statements since its acquisition on July 2, 2015 (the “Qelp acquisition date”).

The consideration consisted of an initial purchase price and a contingent purchase price. The initial purchase price of $9.8 million, including certain post-closing adjustments relating to Qelp’s working capital, was funded through cash on hand upon the closing of the transaction on July 2, 2015. The contingent purchase price to be paid over a three year period is based on achieving targets tied to revenues and earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the years ended December 31, 2016, 2017 and 2018, not to exceed EUR 10.0 million.

As of the Qelp acquisition date, the total consideration paid or to be paid by the Company for the Qelp acquisition is summarized below (in thousands):

	Total
Cash	$	9,885
Contingent consideration		6,000
Working capital adjustment		(65)
	$	15,820

The fair value of the contingent consideration was estimated using the discounted cash flow method, and was included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets (see Note 4, Fair Value, for further information). As part of the discounted cash flow method, the Company calculated an adjusted weighted average cost of capital (“WACC”) specifically attributable to the future payments of the contingent consideration. Based on the forecasted revenue and profitability scenarios and their respective probabilities of occurrence, the Company estimated the present value of the probability-adjusted future payments utilizing an adjusted WACC for the potential future payments. The Company believes that its estimates and assumptions are reasonable, but there is significant judgment involved. Changes in the fair value of the contingent consideration liabilities subsequent to the acquisition will be recorded in the Company’s consolidated financial statements.

The Company accounted for the Qelp acquisition in accordance with ASC 805, whereby the fair value of the purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed from Qelp based on their estimated fair values as of the closing date. The Company completed its analysis of the purchase price allocation during the fourth quarter of 2015.

The following table summarizes the Qelp acquisition date fair values of the assets acquired and liabilities assumed, all included in the EMEA segment (in thousands):

	July 2, 2015
Cash and cash equivalents	$	450
Receivables (1)		1,471
Prepaid expenses		24
Total current assets		1,945
Property and equipment		2,168
Goodwill		10,054
Intangibles		6,000
Deferred charges and other assets		55
Short-term debt		(323)
Accrued employee compensation and benefits		(207)
Income taxes payable		(94)
Deferred revenue		(967)
Other accrued expenses and current liabilities		(1,030)
Total current liabilities		(2,621)
Other long-term liabilities (2)		(1,781)
	$	15,820
(1) The fair value equals the gross contractual value of the receivables.
(2) Primarily includes long-term deferred tax liabilities.

Fair values were based on management’s estimates and assumptions including variations of the income approach, the cost approach and the market approach.

The following table presents the Company’s purchased intangibles assets as of July 2, 2015, the Qelp acquisition date (in thousands):

	Amount Assigned		Weighted Average  Amortization Period  (years)
Customer relationships	$	5,400		7
Trade name and trademarks		100		3
Content library		500		2
	$	6,000		7

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Costs Associated with Exit or Disposal Activities

6 Months Ended

Jun. 30, 2016

Restructuring and Related Activities [Abstract]

Costs Associated with Exit or Disposal Activities

Note 3. Costs Associated with Exit or Disposal Activities

In connection with the Company’s initiatives to streamline excess capacity in The Philippines and various locations in the U.S. (the “Exit Plans”), the Company has paid $7.8 million in cash through June 30, 2016.

The cumulative costs expected and incurred as a result of the Exit Plans were as follows as of June 30, 2016 (in thousands):

	Americas Fourth  Quarter 2011  Exit Plan		Americas Third  Quarter 2010  Exit Plan		Total
Lease obligations and facility exit costs	$	1,365	$	6,729	$	8,094
Non-cash impairment charges		480		3,847		4,327
Total	$	1,845	$	10,576	$	12,421

The following table summarizes the accrued liability associated with the Exit Plans’ exit or disposal activities and related charges for the three and six months ended June 30, 2016 and 2015 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Beginning accrual	$	527	$	1,346	$	733	$	1,558
Lease obligations and facility exit costs		-		-		-		-
Cash payments (1)		(208)		(196)		(414)		(408)
Ending accrual	$	319	$	1,150	$	319	$	1,150
(1) Related to lease obligations and facility exit costs.

Restructuring Liability Classification

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with its exit and disposal activities, by plan, as of June 30, 2016 and December 31, 2015 (in thousands):

	Americas Fourth  Quarter 2011  Exit Plan		Americas Third  Quarter 2010  Exit Plan		Total
June 30, 2016
Short-term accrued restructuring liability (1)	$	76	$	243	$	319
Long-term accrued restructuring liability (2)		-		-		-
Ending accrual at June 30, 2016	$	76	$	243	$	319
December 31, 2015
Short-term accrued restructuring liability (1)	$	144	$	487	$	631
Long-term accrued restructuring liability (2)		22		80		102
Ending accrual at December 31, 2015	$	166	$	567	$	733

(1)	Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.
(2)	Included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

The remaining restructuring liability relates to future rent obligations to be paid through the remainder of the lease terms, the last of which ends in February 2017.

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Fair Value

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value

Note 4. Fair Value

ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy:

● Level 1 — Quoted prices for identical instruments in active markets.

● Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

● Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Fair Value of Financial Instruments — The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

● Cash, short-term and other investments, investments held in rabbi trust and accounts payable — The carrying values for cash, short-term and other investments, investments held in rabbi trust and accounts payable approximate their fair values.

● Foreign currency forward contracts and options — Foreign currency forward contracts and options, including premiums paid on options, are recognized at fair value based on quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk.

● Embedded derivatives — Embedded derivatives within certain hybrid lease agreements are bifurcated from the host contract and recognized at fair value based on pricing models or formulas using significant unobservable inputs, including adjustments for credit risk.

● Long-term debt — The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates.

● Contingent consideration — The contingent consideration is recognized at fair value based on the discounted cash flow method.

Fair Value Measurements — ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements. ASC 820-10-20 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

ASC 825 “Financial Instruments” (“ASC 825”) permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to use the fair value option permitted under ASC 825 for any of its financial assets and financial liabilities that are not already recorded at fair value.

Determination of Fair Value — The Company generally uses quoted market prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access to determine fair value, and classifies such items in Level 1. Fair values determined by Level 2 inputs utilize inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, and inputs other than quoted market prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, currency rates, etc. Assets or liabilities valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable.

The following section describes the valuation methodologies used by the Company to measure assets and liabilities at fair value on a recurring basis, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified.

Money Market and Open-End Mutual Funds — The Company uses quoted market prices in active markets to determine the fair value. These items are classified in Level 1 of the fair value hierarchy.

Foreign Currency Forward Contracts and Options — The Company enters into foreign currency forward contracts and options over the counter and values such contracts using quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk. The key inputs include forward or option foreign currency exchange rates and interest rates. These items are classified in Level 2 of the fair value hierarchy.

Embedded Derivatives — The Company uses significant unobservable inputs to determine the fair value of embedded derivatives, which are classified in Level 3 of the fair value hierarchy. These unobservable inputs include expected cash flows associated with the lease, currency exchange rates on the day of commencement, as well as forward currency exchange rates; results of which are adjusted for credit risk. These items are classified in Level 3 of the fair value hierarchy. See Note 6, Financial Derivatives, for further information.

Investments Held in Rabbi Trust — The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 7, Investments Held in Rabbi Trust, and Note 16, Stock-Based Compensation.

Guaranteed Investment Certificates — Guaranteed investment certificates, with variable interest rates linked to the prime rate, approximate fair value due to the automatic ability to re-price with changes in the market; such items are classified in Level 2 of the fair value hierarchy.

Contingent Consideration — The Company uses significant unobservable inputs to determine the fair value of contingent consideration, which is classified in Level 3 of the fair value hierarchy. The contingent consideration recorded related to the Qelp acquisition and liabilities assumed as part of the Clearlink acquisition was recognized at fair value using a discounted cash flow methodology and a discount rate of approximately 14.0% and 10.0%, respectively. The discount rates vary dependent on the specific risks of each acquisition including the country of operation, the nature of services and complexity of the acquired business, and other similar factors, all of which are significant inputs not observable in the market. Significant increases or decreases in any of the inputs in isolation would result in a significantly higher or lower fair value measurement.

The Company’s assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following (in thousands):

				Fair Value Measurements at June 30, 2016 Using:
		Balance at		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
		June 30, 2016		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	1,429	$	-	$	1,429	$	-
Embedded derivatives	(1)		119		-		-		119
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		6,607		6,607		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		1,908		1,908		-		-
Guaranteed investment certificates	(3)		95		-		95		-
		$	10,158	$	8,515	$	1,524	$	119
Liabilities:
Long-term debt	(4)	$	272,000	$	-	$	272,000	$	-
Foreign currency forward and option contracts	(1)		2,255		-		2,255		-
Embedded derivatives	(1)		76		-		-		76
Contingent consideration included in “Other accrued expenses and current liabilities”	(5)		3,772		-		-		3,772
Contingent consideration included in “Other long-term liabilities”	(5)		5,924		-		-		5,924
		$	284,027	$	-	$	274,255	$	9,772
				Fair Value Measurements at December 31, 2015 Using:
		Balance at		Quoted Prices in Active Markets For  Identical Assets		Significant Other       Observable       Inputs		Significant    Unobservable    Inputs
		December 31, 2015		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	10,962	$	-	$	10,962	$	-
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		6,229		6,229		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		1,622		1,622		-		-
Guaranteed investment certificates	(3)		86		-		86		-
		$	18,899	$	7,851	$	11,048	$	-
Liabilities:
Long-term debt	(4)	$	70,000	$	-	$	70,000	$	-
Foreign currency forward and option contracts	(1)		835		-		835		-
Contingent consideration included in “Other long-term liabilities”	(5)		6,280		-		-		6,280
		$	77,115	$	-	$	70,835	$	6,280

⁽¹⁾ See Note 6, Financial Derivatives, for the classification in the accompanying Condensed Consolidated Balance Sheets.

⁽²⁾ Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets. See Note 7, Investments Held in Rabbi Trust.

⁽³⁾ Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.

⁽⁴⁾ The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 10, Borrowings.

⁽⁵⁾ In the accompanying Condensed Consolidated Balance Sheets.

Reconciliations of Fair Value Measurements Categorized within Level 3 of the Fair Value Hierarchy

Embedded Derivatives in Lease Agreements

A rollforward of the net asset (liability) activity in the Company’s fair value of the embedded derivatives is as follows (in thousands) (none in 2015):

	Fair Value
Balance at January 1, 2016	$	-
Gain (loss) recognized in “Other income (expense)” (1)		46
Effect of foreign currency		(3)
Balance at June 30, 2016	$	43
Unrealized gain (loss) for the three months ended June 30, 2016	$	(12)
Unrealized gain (loss) for the six months ended June 30, 2016	$	43

⁽¹⁾  Includes realized and unrealized gain (loss).

Contingent Consideration

A rollforward of the activity in the Company’s fair value of the contingent consideration is as follows (in thousands):

	Fair Value
Balance at January 1, 2015	$	-
Acquisition (1)		6,000
Payments		-
Imputed interest/adjustments		408
Effect of foreign currency		(128)
Balance at December 31, 2015		6,280
Acquisition (2)		2,779
Payments		-
Imputed interest/adjustments		509
Effect of foreign currency		128
Balance at June 30, 2016	$	9,696

(1)	Related to the Qelp acquisition on July 2, 2015. See Note 2, Acquisitions.
(2)	Liability acquired as part of the Clearlink acquisition on April 1, 2016. See Note 2, Acquisitions.

The Company did not record any fair value adjustments to the contingent consideration as the key assumptions used to calculate the fair value at the acquisition dates remained consistent at June 30, 2016. Should the assumptions regarding probability of achievement of certain targets, including revenue and EBITDA, change in future periods, the change in fair value of the contingent consideration will be recognized in the Company’s consolidated financial statements. The Company accretes interest expense each period using the effective interest method until the contingent consideration reaches the estimated future value of $12.1 million. Interest expense related to the contingent consideration is included in “Interest (expense)” in the accompanying Condensed Consolidated Statements of Operations.

Non-Recurring Fair Value

Certain assets, under certain conditions, are measured at fair value on a nonrecurring basis utilizing Level 3 inputs, like those associated with acquired businesses, including goodwill, other intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if these assets were determined to be impaired. The adjusted carrying values for assets measured at fair value on a nonrecurring basis (no liabilities) subject to the requirements of ASC 820 were not material at June 30, 2016 and December 31, 2015.

XML

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 5.  Goodwill and Intangible Assets

Intangible Assets

The following table presents the Company’s purchased intangible assets as of June 30, 2016 (in thousands):

	Gross Intangibles		Accumulated       Amortization		Net Intangibles		Weighted Average  Amortization Period (years)
Intangible assets subject to amortization:
Customer relationships	$	167,628	$	(66,842)	$	100,786		10
Trade names and trademarks		14,100		(6,235)		7,865		7
Non-compete agreements		2,997		(1,347)		1,650		2
Content library		500		(250)		250		2
Proprietary software		1,550		(885)		665		3
Favorable lease agreement		449		(449)		-		2
Intangible assets not subject to amortization:
Domain names		52,700		-		52,700		N/A
	$	239,924	$	(76,008)	$	163,916		6

The following table presents the Company’s purchased intangible assets as of December 31, 2015 (in thousands):

	Gross Intangibles		Accumulated       Amortization		Net Intangibles		Weighted Average  Amortization Period (years)
Intangible assets subject to amortization:
Customer relationships	$	102,594	$	(58,294)	$	44,300		8
Trade names and trademarks		11,698		(5,470)		6,228		8
Content library		491		(123)		368		2
Non-compete agreements		1,190		(1,190)		-		2
Proprietary software		850		(850)		-		2
Favorable lease agreement		449		(449)		-		2
	$	117,272	$	(66,376)	$	50,896		8

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to June 30, 2016, is as follows (in thousands):

Years Ending December 31,	Amount
2016 (remaining six months)	$	10,433
2017		20,755
2018		14,495
2019		13,443
2020		10,783
2021		6,397
2022 and thereafter		34,910

Goodwill

Changes in goodwill for the six months ended June 30, 2016 consist of the following (in thousands):

	January 1, 2016		Acquisition (1)		Effect of Foreign  Currency		June 30, 2016
Americas	$	186,049	$	70,223	$	1,848	$	258,120
EMEA		9,684		-		345		10,029
	$	195,733	$	70,223	$	2,193	$	268,149

Changes in goodwill for the year ended December 31, 2015 consist of the following (in thousands):

	January 1, 2015		Acquisition (1)		Effect of Foreign  Currency		December 31, 2015
Americas	$	193,831	$	-	$	(7,782)	$	186,049
EMEA		-		10,054		(370)		9,684
	$	193,831	$	10,054	$	(8,152)	$	195,733

⁽¹⁾ See Note 2, Acquisitions, for further information.

The Company performs its annual goodwill impairment test during the third quarter, or more frequently, if indicators of impairment exist.

For the annual goodwill impairment test, the Company elected to forgo the option to first assess qualitative factors and performed its annual two-step goodwill impairment test as of July 31, 2015. Under ASC 350, the carrying value of assets is calculated at the reporting unit level. The quantitative assessment of goodwill includes comparing a reporting unit’s calculated fair value to its carrying value. The calculation of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth, the useful life over which cash flows will occur and determination of the Company’s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. If the fair value of the reporting unit is less than its carrying value, goodwill is considered impaired and an impairment loss is recorded to the extent that the fair value of the goodwill within the reporting unit is less than its carrying value.

The process of evaluating the fair value of the reporting units is highly subjective and requires significant judgment and estimates as the reporting units operate in a number of markets and geographical regions. The Company used an average of the income and market approaches to determine its best estimates of fair value which incorporated the following significant assumptions:

● Revenue projections, including revenue growth during the forecast periods;

● EBITDA margin projections over the forecast periods;

● Estimated income tax rates;

● Estimated capital expenditures; and

● Discount rates based on various inputs, including the risks associated with the specific reporting units as well as their revenue growth and EBITDA margin assumptions.

As of July 31, 2015, the Company concluded that goodwill was not impaired for all five of its reporting units with goodwill. While the fair values of four of the reporting units were substantially in excess of their carrying value, the Qelp reporting unit’s fair value approximated its carrying value due to the proximity to the acquisition date of July 2, 2015. The newly acquired Qelp reporting unit’s carrying value was $15.6 million at July 31, 2015, including $9.9 million of goodwill.

The Qelp reporting unit is at risk for future impairment if projected operating results are not met or other inputs into the fair value measurement change. However, as of June 30, 2016 and December 31, 2015, there were no indicators of impairment.

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Financial Derivatives

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Derivatives

Note 6. Financial Derivatives

Cash Flow Hedges – The Company has derivative assets and liabilities relating to outstanding forward contracts and options, designated as cash flow hedges, as defined under ASC 815 “Derivatives and Hedging” (“ASC 815”), consisting of Philippine Peso, Costa Rican Colon, Hungarian Forint and Romanian Leu contracts. These contracts are entered into to protect against the risk that the eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates.

The deferred gains (losses) and related taxes on the Company’s cash flow hedges recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) in the accompanying Condensed Consolidated Balance Sheets are as follows (in thousands):

	June 30, 2016		December 31, 2015
Deferred gains (losses) in AOCI	$	(75)	$	(558)
Tax on deferred gains (losses) in AOCI		(18)		31
Deferred gains (losses) in AOCI, net of taxes	$	(93)	$	(527)
Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months	$	(39)

Deferred gains (losses) and other future reclassifications from AOCI will fluctuate with movements in the underlying market price of the forward contracts and options.

Net Investment Hedge – The Company enters into foreign exchange forward contracts to hedge its net investment in certain foreign operations, as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against the risk that the net assets of certain foreign subsidiaries will be adversely affected by changes in exchange rates and economic exposures related to the Company’s foreign currency-based investments in these subsidiaries.

Non-Designated Hedges

Foreign Currency Forward Contracts – The Company also periodically enters into foreign currency hedge contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against adverse foreign currency moves relating primarily to intercompany receivables and payables, and other assets and liabilities that are denominated in currencies other than the Company’s subsidiaries’ functional currencies. These contracts generally do not exceed 180 days in duration.

Embedded Derivatives – The Company enters into certain lease agreements which require payments not denominated in the functional currency of any substantial party to the agreements. The foreign currency component of these contracts meets the criteria under ASC 815 as embedded derivatives. The Company has determined that the embedded derivatives are not clearly and closely related to the economic characteristics and risks of the host contracts (lease agreements), and separate, stand-alone instruments with the same terms as the embedded derivative instruments would otherwise qualify as derivative instruments, thereby requiring separation from the lease agreements and recognition at fair value. Such instruments do not qualify for hedge accounting under ASC 815.

The Company had the following outstanding foreign currency forward contracts and options, and embedded derivatives (in thousands):

	As of June 30, 2016				As of December 31, 2015
Contract Type	Notional     Amount in     USD		Settle Through     Date		Notional     Amount in     USD		Settle Through     Date
Cash flow hedges:
Options:
Philippine Pesos	$	54,000		March 2017	$	71,750		December 2016
Forwards:
Costa Rican Colones		32,000		September 2017		34,500		November 2016
Hungarian Forints		1,330		December 2016		-		-
Romanian Leis		3,308		December 2016		-		-
Net investment hedges:
Forwards:
Euros		76,933		September 2017		63,470		March 2016
Non-designated hedges:
Forwards		58,683		September 2016		50,603		March 2016
Embedded derivatives		11,626		April 2030		-		-

Master netting agreements exist with each respective counterparty to reduce credit risk by permitting net settlement of derivative positions. In the event of default by the Company or one of its counterparties, these agreements include a set-off clause that provides the non-defaulting party the right to net settle all derivative transactions, regardless of the currency and settlement date. The maximum amount of loss due to credit risk that, based on gross fair value, the Company would incur if parties to the derivative transactions that make up the concentration failed to perform according to the terms of the contracts was $1.5 million and $11.0 million as of June 30, 2016 and December 31, 2015, respectively. After consideration of these netting arrangements and offsetting positions by counterparty, the total net settlement amount as it relates to these positions are asset positions of $0.6 million and $10.2 million as of June 30, 2016 and December 31, 2015, respectively, and liability positions of $1.4 million and $0.1 million as of June 30, 2016 and December 31, 2015, respectively.

Although legally enforceable master netting arrangements exist between the Company and each counterparty, the Company has elected to present the derivative assets and derivative liabilities on a gross basis in the accompanying Condensed Consolidated Balance Sheets. Additionally, the Company is not required to pledge, nor is it entitled to receive, cash collateral related to these derivative transactions.

The following tables present the fair value of the Company’s derivative instruments included in the accompanying Condensed Consolidated Balance Sheets (in thousands):

	Derivative Assets
	June 30, 2016		December 31, 2015
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (1)	$	921	$	544
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (1)		-		10,161
Foreign currency forward contracts (2)		419		-
		1,340		10,705
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (1)		89		257
Embedded derivatives (1)		3		-
Embedded derivatives (2)		116		-
Total derivative assets	$	1,548	$	10,962
	Derivative Liabilities
	June 30, 2016		December 31, 2015
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (3)	$	426	$	396
Foreign currency forward and option contracts (4)		36		-
		462		396
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (4)		1,295		-
		1,757		396
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (3)		498		439
Embedded derivatives (3)		4		-
Embedded derivatives (4)		72		-
Total derivative liabilities	$	2,331	$	835

(1)	Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets.
(2)	Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.
(3)	Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.
(4)	Included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the three months ended June 30, 2016 and 2015 (in thousands):

	Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)				Gain (Loss) Reclassified From Accumulated AOCI Into “Revenues” (Effective Portion)				Gain (Loss) Recognized in “Revenues” on Derivatives (Ineffective Portion and Amount Excluded  from Effectiveness Testing)
	June 30,				June 30,				June 30,
	2016		2015		2016		2015		2016		2015
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	(2,072)	$	357	$	4	$	739	$	-	$	1
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		2,414		(1,848)		-		-		-		-
	$	342	$	(1,491)	$	4	$	739	$	-	$	1

	Statements of Operations     Location	Gain (Loss) Recognized   on Derivatives
		June 30,
		2016		2015
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	Other income and (expense)	$	575	$	67
Foreign currency forward contracts	Revenues		-		4
Embedded derivatives	Other income and (expense)		10		-
		$	585	$	71

The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the six months ended June 30, 2016 and 2015 (in thousands):

	Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)				Gain (Loss) Reclassified From Accumulated AOCI Into “Revenues” (Effective Portion)				Gain (Loss) Recognized in “Revenues” on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	June 30,				June 30,				June 30,
	2016		2015		2016		2015		2016		2015
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	431	$	2,412	$	(50)	$	1,328	$	-	$	2
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		(698)		4,510		-		-		-		-
	$	(267)	$	6,922	$	(50)	$	1,328	$	-	$	2

	Statements of Operations     Location	Gain (Loss) Recognized   on Derivatives
		June 30,
		2016		2015
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	Other income and (expense)	$	1,370	$	(97)
Foreign currency forward contracts	Revenues		-		4
Embedded derivatives	Other income and (expense)		(46)		-
		$	1,324	$	(93)

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Investments Held in Rabbi Trust

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investments Held in Rabbi Trust

Note 7.  Investments Held in Rabbi Trust

The Company’s investments held in rabbi trust, classified as trading securities and included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets, at fair value, consist of the following (in thousands):

	June 30, 2016				December 31, 2015
	Cost		Fair Value		Cost		Fair Value
Mutual funds	$	6,766	$	8,515	$	6,217	$	7,851

The mutual funds held in rabbi trust were 78% equity-based and 22% debt-based as of June 30, 2016. Net investment income (losses), included in “Other income (expense)” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Gross realized gains from sale of trading securities	$	-	$	17	$	-	$	20
Gross realized (losses) from sale of trading securities		-		-		-		(1)
Dividend and interest income		10		13		19		18
Net unrealized holding gains (losses)		134		(50)		154		73
Net investment income (losses)	$	144	$	(20)	$	173	$	110

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Deferred Revenue

6 Months Ended

Jun. 30, 2016

Deferred Revenue Disclosure [Abstract]

Deferred Revenue

Note 8. Deferred Revenue

Deferred revenue consists of the following (in thousands):

	June 30, 2016		December 31, 2015
Future service	$	24,847	$	22,112
Estimated potential penalties and holdbacks		8,452		6,007
Estimated chargebacks		4,382		-
	$	37,681	$	28,119

The Company receives up-front fees in connection with certain contracts. The deferred revenue is earned over the service periods of the respective contracts, which range from 30 days to seven years. Deferred revenue included in current liabilities in the accompanying Condensed Consolidated Balance Sheets includes the up-front fees associated with services to be provided over the ensuing twelve month period and the up-front fees associated with services to be provided over multiple years in connection with contracts that contain cancellation and refund provisions, whereby the manufacturers or customers can terminate the contracts and demand pro-rata refunds of the up-front fees with short notice. Deferred revenue from estimated penalties and holdbacks results from the failure to meet specified minimum service levels in certain contracts and other performance based contingencies. Deferred revenue from estimated chargebacks reflects the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred.

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Deferred Grants

6 Months Ended

Jun. 30, 2016

Text Block [Abstract]

Deferred Grants

Note 9. Deferred Grants

Deferred grants, net of accumulated amortization, consist of the following (in thousands):

	June 30, 2016		December 31, 2015
Property grants	$	4,063	$	4,377
Lease grants		496		513
Employment grants		117		149
Total deferred grants		4,676		5,039
Less: Property grants - short-term (1)		-		-
Less: Lease grants - short-term (1)		(84)		(80)
Less: Employment grants - short-term (1)		(117)		(149)
Total long-term deferred grants	$	4,475	$	4,810

⁽¹⁾ Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.

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Borrowings

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Borrowings

Note 10. Borrowings

On May 12, 2015, the Company entered into a $440 million revolving credit facility (the “2015 Credit Agreement”) with a group of lenders and KeyBank National Association, as Lead Arranger, Sole Book Runner, Administrative Agent, Swing Line Lender and Issuing Lender (“KeyBank”). The 2015 Credit Agreement is subject to certain borrowing limitations and includes certain customary financial and restrictive covenants.

The 2015 Credit Agreement includes a $200 million alternate-currency sub-facility, a $10 million swingline sub-facility and a $35 million letter of credit sub-facility, and may be used for general corporate purposes including acquisitions, share repurchases, working capital support and letters of credit, subject to certain limitations. The Company is not currently aware of any inability of its lenders to provide access to the full commitment of funds that exist under the revolving credit facility, if necessary. However, there can be no assurance that such facility will be available to the Company, even though it is a binding commitment of the financial institutions.

Borrowings consist of the following (in thousands):

	June 30, 2016		December 31, 2015
Revolving credit facility	$	272,000	$	70,000
Less: Current portion		-		-
Total long-term debt	$	272,000	$	70,000

On April 1, 2016, the Company borrowed $216.0 million under its 2015 Credit Agreement in connection with the acquisition of Clearlink, of which $4.0 million represented a short-term loan to Clearlink for working capital purposes.

The 2015 Credit Agreement matures on May 12, 2020 and has no varying installments due.

Borrowings under the 2015 Credit Agreement bear interest at the rates set forth in the 2015 Credit Agreement. In addition, the Company is required to pay certain customary fees, including a commitment fee determined quarterly based on the Company’s leverage ratio and due quarterly in arrears as calculated on the average unused amount of the 2015 Credit Agreement. The commitment fee was 0.125% for the three and six months ended June 30, 2016 and 2015.

The 2015 Credit Agreement is guaranteed by all of the Company’s existing and future direct and indirect material U.S. subsidiaries and secured by a pledge of 100% of the non-voting and 65% of the voting capital stock of all the direct foreign subsidiaries of the Company and those of the guarantors.

In May 2015, the Company paid an underwriting fee of $0.9 million for the 2015 Credit Agreement, which is deferred and amortized over the term of the loan, along with the deferred loan fees of $0.4 million related to the previous credit agreement.

The following table presents information related to our credit agreements (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Average daily utilization	$	278,769	$	70,198	$	174,385	$	72,249
Interest expense, including commitment fee (1)	$	1,079	$	320	$	1,454	$	638
Weighted average interest rate		1.6%		1.8%		1.9%		1.8%

⁽¹⁾ Excludes the amortization of deferred loan fees.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 11. Accumulated Other Comprehensive Income (Loss)

The Company presents data in the Condensed Consolidated Statements of Changes in Shareholders’ Equity in accordance with ASC 220 “Comprehensive Income” (“ASC 220”). ASC 220 establishes rules for the reporting of comprehensive income (loss) and its components. The components of accumulated other comprehensive income (loss) consist of the following (in thousands):

	Foreign Currency Translation Gain (Loss)		Unrealized Gain (Loss) on Net Investment Hedge		Unrealized Actuarial Gain (Loss) Related to Pension Liability		Unrealized Gain (Loss) on Cash Flow Hedging Instruments		Unrealized Gain (Loss) on Post Retirement Obligation		Total
Balance at January 1, 2015	$	(22,076)	$	276	$	1,008	$	(111)	$	342	$	(20,561)
Pre-tax amount		(37,178)		6,101		121		1,708		(12)		(29,260)
Tax (provision) benefit		-		(2,207)		(2)		32		-		(2,177)
Reclassification of (gain) loss to net income		647		-		(53)		(2,195)		(63)		(1,664)
Foreign currency translation		6		-		(45)		39		-		-
Balance at December 31, 2015		(58,601)		4,170		1,029		(527)		267		(53,662)
Pre-tax amount		4,297		(698)		-		431		-		4,030
Tax (provision) benefit		-		265		-		(26)		-		239
Reclassification of (gain) loss to net income		-		-		(22)		28		(27)		(21)
Foreign currency translation		3		-		(4)		1		-		-
Balance at June 30, 2016	$	(54,301)	$	3,737	$	1,003	$	(93)	$	240	$	(49,414)

The following table summarizes the amounts reclassified to net income from accumulated other comprehensive income (loss) and the associated line item in the accompanying Condensed Consolidated Statements of Operations (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,				Statements of Operations     Location
	2016		2015		2016		2015
Actuarial Gain (Loss) Related to Pension Liability: (1)
Pre-tax amount	$	10	$	10	$	22	$	21	Direct salaries and related costs
Tax (provision) benefit		-		-		-		-	Income taxes
Reclassification to net income		10		10		22		21
Gain (Loss) on Cash Flow Hedging Instruments: (2)
Pre-tax amount		4		740		(50)		1,330	Revenues
Tax (provision) benefit		3		5		22		11	Income taxes
Reclassification to net income		7		745		(28)		1,341
Gain (Loss) on Post Retirement Obligation: (1)
Pre-tax amount		14		14		27		28	General and administrative
Tax (provision) benefit		-		-		-		-	Income taxes
Reclassification to net income		14		14		27		28
Total reclassification of gain (loss) to net income	$	31	$	769	$	21	$	1,390

⁽¹⁾ See Note 15, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

⁽²⁾ See Note 6, Financial Derivatives, for further information.

Except as discussed in Note 12, Income Taxes, earnings associated with the Company’s investments in its foreign subsidiaries are considered to be indefinitely reinvested and no provision for income taxes on those earnings or translation adjustments have been provided.

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Income Taxes

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Note 12. Income Taxes

The Company’s effective tax rate was 29.9% and 26.6% for the three months ended June 30, 2016 and 2015, respectively. The increase in the effective tax rate is predominately due to several factors, including shifts in earnings among the various jurisdictions in which the Company operates, none of which are individually material. The difference between the Company’s effective tax rate of 29.9% as compared to the U.S. statutory federal income tax rate of 35.0% was primarily due to the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in uncertain tax positions, adjustments of valuation allowances and tax credits, partially offset by the tax impact of permanent differences and foreign withholding taxes.

The Company’s effective tax rate was 30.4% and 26.8% for the six months ended June 30, 2016 and 2015, respectively. The increase in the effective tax rate is predominately due to several factors, including shifts in earnings among the various jurisdictions in which the Company operates, none of which are individually material. The difference between the Company’s effective tax rate of 30.4% as compared to the U.S. statutory federal income tax rate of 35.0% was primarily due to the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in uncertain tax positions, adjustments of valuation allowances and tax credits, partially offset by the tax impact of permanent differences and foreign withholding taxes.

Earnings associated with the investments in the Company’s foreign subsidiaries are considered to be indefinitely reinvested outside of the U.S. Therefore, a U.S. provision for income taxes on those earnings or translation adjustments has not been recorded, as permitted by criterion outlined in ASC 740 “Income Taxes.” Determination of any unrecognized deferred tax liability related to investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates.

The Company is currently under audit in several tax jurisdictions. The Company received assessments for the Canadian 2003-2009 audit. Requests for Competent Authority Assistance were filed with both the Canadian Revenue Agency and the U.S. Internal Revenue Service and the Company paid mandatory security deposits to Canada as part of this process. The total amount of deposits, net of the effects of foreign exchange rate adjustments, are $14.3 million and $13.4 million as of June 30, 2016 and December 31, 2015, respectively, and are included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets. Although the outcome of examinations by taxing authorities is always uncertain, the Company believes it is adequately reserved for these audits and resolution is not expected to have a material impact on its financial condition and results of operations.

The significant tax jurisdictions currently under audit are as follows:

Tax Jurisdiction	Tax Years Ended
Canada	2003 to 2009

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Earnings Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Note 13. Earnings Per Share

Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust using the treasury stock method.

The numbers of shares used in the earnings per share computation are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Basic:
Weighted average common shares outstanding		41,970		42,008		41,838		42,095
Diluted:
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust		131		208		263		233
Total weighted average diluted shares outstanding		42,101		42,216		42,101		42,328
Anti-dilutive shares excluded from the diluted earnings per share calculation		21		27		21		24

On August 18, 2011, the Company’s Board of Directors (the “Board”) authorized the Company to purchase up to 5.0 million shares of its outstanding common stock (the “2011 Share Repurchase Program”). On March 16, 2016, the Board authorized an increase of 5.0 million shares to the 2011 Share Repurchase Program for a total of 10.0 million shares. A total of 4.9 million shares have been repurchased under the 2011 Share Repurchase Program since inception. The shares are purchased, from time to time, through open market purchases or in negotiated private transactions, and the purchases are based on factors, including but not limited to, the stock price, management discretion and general market conditions. The 2011 Share Repurchase Program has no expiration date.

The shares repurchased under the Company’s share repurchase programs were as follows (in thousands, except per share amounts) (none in 2016):

	Total Number     of Shares		Range of Prices Paid Per Share				Total Cost of Shares
	Repurchased		Low		High		Repurchased
Three Months Ended:
June 30, 2015		279	$	24.14	$	24.79	$	6,833
Six Months Ended:
June 30, 2015		500	$	22.81	$	24.79	$	11,969

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Commitments and Loss Contingency

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Loss Contingency

Note 14. Commitments and Loss Contingency

Commitments

During the six months ended June 30, 2016, the Company entered into several leases in the ordinary course of business. The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of June 30, 2016, including the impact of the leases assumed in connection with the Clearlink acquisition (in thousands):

	Amount
2016 (remaining six months)	$	3,635
2017		9,256
2018		9,179
2019		9,317
2020		8,986
2021		7,115
2022 and thereafter		27,800
Total minimum payments required	$	75,288

During the six months ended June 30, 2016, the Company entered into agreements with third-party vendors in the ordinary course of business whereby the Company committed to purchase goods and services used in its normal operations. These agreements generally are not cancelable, range from one to five year periods and may contain fixed or minimum annual commitments. Certain of these agreements allow for renegotiation of the minimum annual commitments. The following is a schedule of the future minimum purchases remaining under the agreements as of June 30, 2016, including the impact of the agreements assumed in connection with the Clearlink acquisition (in thousands):

	Amount
2016 (remaining six months)	$	5,513
2017		1,749
2018		652
2019		-
2020		-
2021		-
2022 and thereafter		-
Total minimum payments required	$	7,914

The July 2015 Qelp acquisition included contingent consideration of $6.0 million, based on achieving targets tied to revenues and EBITDA for the years ended December 31, 2016, 2017 and 2018. The estimated future value of the contingent consideration is $9.1 million and is expected to be paid over a three year period.

As part of the April 2016 Clearlink acquisition, the Company assumed contingent consideration liabilities related to four separate acquisitions made by Clearlink in 2015 and 2016, prior to the Merger. The fair value of the contingent consideration related to these previous acquisitions was $2.8 million as of April 1, 2016 and was based on achieving targets primarily tied to revenues for varying periods of time during 2016 and 2017. The estimated future value of the contingent consideration is $3.0 million and is expected to be paid on varying dates through July 2017.

Loss Contingency

The Company, from time to time, is involved in legal actions arising in the ordinary course of business. With respect to these matters, management believes that the Company has adequate legal defenses and/or when possible and appropriate, provided adequate accruals related to those matters such that the ultimate outcome will not have a material adverse effect on the Company’s financial position or results of operations.

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Defined Benefit Pension Plan and Postretirement Benefits

6 Months Ended

Jun. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Defined Benefit Pension Plan and Postretirement Benefits

Note 15. Defined Benefit Pension Plan and Postretirement Benefits

Defined Benefit Pension Plans

The following table provides information about the net periodic benefit cost for the Company’s pension plans (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Service cost	$	120	$	113	$	238	$	228
Interest cost		45		35		89		71
Recognized actuarial (gains)		(10)		(10)		(22)		(21)
Net periodic benefit cost	$	155	$	138	$	305	$	278

Employee Retirement Savings Plans

The Company maintains a 401(k) plan covering defined employees who meet established eligibility requirements. Under the plan provisions, the Company matches 50% of participant contributions to a maximum matching amount of 2% of participant compensation. The Company’s contributions included in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
401(k) plan contributions	$	334	$	188	$	619	$	471

Split-Dollar Life Insurance Arrangement

In 1996, the Company entered into a split-dollar life insurance arrangement to benefit the former Chairman and Chief Executive Officer of the Company. Under the terms of the arrangement, the Company retained a collateral interest in the policy to the extent of the premiums paid by the Company. The postretirement benefit obligation included in “Other long-term liabilities” and the unrealized gains (losses) included in “Accumulated other comprehensive income” in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands):

	June 30, 2016		December 31, 2015
Postretirement benefit obligation	$	31	$	37
Unrealized gains (losses) in AOCI (1)	$	240	$	267

⁽¹⁾ Unrealized gains (losses) are impacted by changes in discount rates related to the postretirement obligation.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Note 16. Stock-Based Compensation

The Company’s stock-based compensation plans include the 2011 Equity Incentive Plan, the Non-Employee Director Fee Plan and the Deferred Compensation Plan. The following table summarizes the stock-based compensation expense (primarily in the Americas), income tax benefits related to the stock-based compensation and excess tax benefits (deficiencies) (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Stock-based compensation (expense) (1)	$	(3,547)	$	(1,288)	$	(5,729)	$	(3,284)
Income tax benefit (2)		1,348		486		2,177		1,215
Excess tax benefit (deficiency) from stock-based compensation (3)		149		-		2,060		169

(1)	Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.
(2)	Included in “Income taxes” in the accompanying Condensed Consolidated Statements of Operations.
(3)	Included in “Additional paid-in capital” in the accompanying Condensed Consolidated Statements of Changes in Shareholders’ Equity.

There were no capitalized stock-based compensation costs as of June 30, 2016 and December 31, 2015.

2011 Equity Incentive Plan — The Company’s Board adopted the Sykes Enterprises, Incorporated 2011 Equity Incentive Plan (the “2011 Plan”) on March 23, 2011, as amended on May 11, 2011 to reduce the number of shares of common stock available to 4.0 million shares. The 2011 Plan was approved by the shareholders at the May 2011 annual shareholders meeting. The 2011 Plan replaced and superseded the Company’s 2001 Equity Incentive Plan (the “2001 Plan”), which expired on March 14, 2011. The outstanding awards granted under the 2001 Plan will remain in effect until their exercise, expiration or termination. The 2011 Plan permits the grant of restricted stock, stock appreciation rights, stock options and other stock-based awards to certain employees of the Company, members of the Company’s Board of Directors and certain non-employees who provide services to the Company in order to encourage them to remain in the employment of, or to faithfully provide services to, the Company and to increase their interest in the Company’s success.

Stock Appreciation Rights — The Board, at the recommendation of the Compensation and Human Resources Development Committee (the “Compensation Committee”), has approved in the past, and may approve in the future, awards of stock-settled stock appreciation rights (“SARs”) for eligible participants. SARs represent the right to receive, without payment to the Company, a certain number of shares of common stock, as determined by the Compensation Committee, equal to the amount by which the fair market value of a share of common stock at the time of exercise exceeds the grant price. The SARs are granted at the fair market value of the Company’s common stock on the date of the grant and vest one-third on each of the first three anniversaries of the date of grant, provided the participant is employed by the Company on such date. The SARs have a term of 10 years from the date of grant. The fair value of each SAR is estimated on the date of grant using the Black-Scholes valuation model that uses various assumptions.

The following table summarizes the assumptions used to estimate the fair value of SARs granted:

	Six Months Ended June 30,
	2016		2015
Expected volatility		25.3%		34.1%
Weighted-average volatility		25.3%		34.1%
Expected dividend rate		0.0%		0.0%
Expected term (in years)		5.0		5.0
Risk-free rate		1.5%		1.6%

The following table summarizes SARs activity as of June 30, 2016 and for the six months then ended:

Stock Appreciation Rights	Shares (000s)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (000s)
Outstanding at January 1, 2016		481	$	-
Granted		323	$	-
Exercised		(151)	$	-
Forfeited or expired		(20)	$	-
Outstanding at June 30, 2016		633	$	-		8.7	$	1,974
Vested or expected to vest at June 30, 2016		633	$	-		8.7	$	1,974
Exercisable at June 30, 2016		118	$	-		6.3	$	797

The following table summarizes information regarding SARs granted and exercised (in thousands, except per SAR amounts):

	Six Months Ended June 30,
	2016		2015
Number of SARs granted		323		217
Weighted average grant-date fair value per SAR	$	7.68	$	8.17
Intrinsic value of SARs exercised	$	1,691	$	734
Fair value of SARs vested	$	1,520	$	1,302

The following table summarizes nonvested SARs activity as of June 30, 2016 and for the six months then ended:

Nonvested Stock Appreciation Rights	Shares (000s)		Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2016		424	$	7.50
Granted		323	$	7.68
Vested		(213)	$	7.14
Forfeited or expired		(19)	$	7.68
Nonvested at June 30, 2016		515	$	7.76

As of June 30, 2016, there was $3.5 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested SARs granted under the 2011 Plan. This cost is expected to be recognized over a weighted average period of 1.5 years.

Restricted Shares – The Board, at the recommendation of the Compensation Committee, has approved in the past, and may approve in the future, awards of performance and employment-based restricted shares (“restricted shares”) for eligible participants. In some instances, where the issuance of restricted shares has adverse tax consequences to the recipient, the Board may instead issue restricted stock units (“RSUs”). The restricted shares are shares of the Company’s common stock (or in the case of RSUs, represent an equivalent number of shares of the Company’s common stock) which are issued to the participant subject to (a) restrictions on transfer for a period of time and (b) forfeiture under certain conditions. The performance goals, including revenue growth and income from operations targets, provide a range of vesting possibilities from 0% to 100% and will be measured at the end of the performance period. If the performance conditions are met for the performance period, the shares will vest and all restrictions on the transfer of the restricted shares will lapse (or in the case of RSUs, an equivalent number of shares of the Company’s common stock will be issued to the recipient). The Company recognizes compensation cost, net of estimated forfeitures, based on the fair value (which approximates the current market price) of the restricted shares (and RSUs) on the date of grant ratably over the requisite service period based on the probability of achieving the performance goals.

Changes in the probability of achieving the performance goals from period to period will result in corresponding changes in compensation expense. The employment-based restricted shares currently outstanding vest one-third on each of the first three anniversaries of the date of grant, provided the participant is employed by the Company on such date.

The following table summarizes nonvested restricted shares/RSUs activity as of June 30, 2016 and for the six months then ended:

Nonvested Restricted Shares and RSUs	Shares (000s)		Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2016		1,246	$	20.03
Granted		451	$	30.32
Vested		(421)	$	16.10
Forfeited or expired		(136)	$	20.60
Nonvested at June 30, 2016		1,140	$	25.49

The following table summarizes information regarding restricted shares/RSUs granted and vested (in thousands, except per restricted share/RSU amounts):

	Six Months Ended June 30,
	2016		2015
Number of restricted shares/RSUs granted		451		441
Weighted average grant-date fair value per restricted share/RSU	$	30.32	$	25.06
Fair value of restricted shares/RSUs vested	$	6,785	$	2,019

As of June 30, 2016, based on the probability of achieving the performance goals, there was $21.2 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted shares/RSUs granted under the 2011 Plan. This cost is expected to be recognized over a weighted average period of 2.1 years.

Non-Employee Director Fee Plan — The Company’s 2004 Non-Employee Director Fee Plan (the “2004 Fee Plan”), as amended on May 17, 2012, provided that all new non-employee directors joining the Board would receive an initial grant of shares of common stock on the date the new director is elected or appointed, the number of which will be determined by dividing $60,000 by the closing price of the Company’s common stock on the trading day immediately preceding the date a new director is elected or appointed, rounded to the nearest whole number of shares. The initial grant of shares vested in twelve equal quarterly installments, one-twelfth on the date of grant and an additional one-twelfth on each successive third monthly anniversary of the date of grant. The award lapses with respect to all unvested shares in the event the non-employee director ceases to be a director of the Company, and any unvested shares are forfeited.

The 2004 Fee Plan also provided that each non-employee director would receive, on the day after the annual shareholders meeting, an annual retainer for service as a non-employee director (the “Annual Retainer”). Prior to May 17, 2012, the Annual Retainer was $95,000, of which $50,000 was payable in cash, and the remainder was paid in stock. The annual grant of cash vested in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant. The annual grant of shares paid to non-employee directors prior to May 17, 2012 vests in eight equal quarterly installments, one-eighth on the day following the annual meeting of shareholders, and an additional one-eighth on each successive third monthly anniversary of the date of grant. On May 17, 2012, upon the recommendation of the Compensation Committee, the Board adopted the Fifth Amended and Restated Non-Employee Director Fee Plan (the “Amendment”), which increased the common stock component of the Annual Retainer by $30,000, resulting in a total Annual Retainer of $125,000, of which $50,000 was payable in cash and the remainder paid in stock. In addition, the Amendment also changed the vesting period for the annual equity award, from a two-year vesting period, to a one-year vesting period (consisting of four equal quarterly installments, one-fourth on the date of grant and an additional one-fourth on each successive third monthly anniversary of the date of grant). The award lapses with respect to all unpaid cash and unvested shares in the event the non-employee director ceases to be a director of the Company, and any unvested shares and unpaid cash are forfeited.

In addition to the Annual Retainer award, the 2004 Fee Plan also provided for any non-employee Chairman of the Board to receive an additional annual cash award of $100,000, and each non-employee director serving on a committee of the Board to receive an additional annual cash award. The additional annual cash award for the Chairperson of the Audit Committee is $20,000 and Audit Committee members’ are entitled to an annual cash award of $10,000. The annual cash awards for the Chairpersons of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee are $15,000, $12,500 and $12,500, respectively, and all other members of such committees are entitled to an annual cash award of $7,500.

The 2004 Fee Plan expired in May 2014, prior to the 2014 Annual Shareholder Meeting. In March 2014, upon the recommendation of the Compensation Committee, the Board determined that, following the expiration of the 2004 Fee Plan, the compensation of non-employee Directors should continue on the same terms as provided in the Fifth Amended and Restated Non-Employee Director Fee Plan, except the amounts of cash and equity grants shall be determined annually by the Board, and that the stock portion of such compensation would be issued under the 2011 Plan.

At the Board’s regularly scheduled meeting on December 10, 2014, upon the recommendation of the Compensation Committee, the Board determined that the amount of the cash and equity compensation payable to non-employee directors beginning on the date of the 2015 annual shareholder meeting would be increased as follows: cash compensation would be increased by $5,000 per year to a total of $55,000 and equity compensation would be increased by $25,000 per year to a total of $100,000. No change would be made in the additional amounts payable to the Chairman of the Board or the Chairs or members of the various Board committees for their service on such committees, and no changes would be made in the payment terms described above for such cash and equity compensation.

The Board may pay additional cash compensation to any non-employee director for services on behalf of the Board over and above those typically expected of directors, including but not limited to service on a special committee of the Board.

The following table summarizes nonvested common stock share award activity as of June 30, 2016 and for the six months then ended:

Nonvested Common Stock Share Awards	Shares (000s)		Weighted Average Grant-  Date Fair Value
Nonvested at January 1, 2016		11	$	23.74
Granted		32	$	29.04
Vested		(16)	$	26.50
Forfeited or expired		(1)	$	24.70
Nonvested at June 30, 2016		26	$	28.56

The following table summarizes information regarding common stock share awards granted and vested (in thousands, except per share award amounts):

	Six Months Ended June 30,
	2016		2015
Number of share awards granted		32		32
Weighted average grant-date fair value per share award	$	29.04	$	24.70
Fair value of share awards vested	$	410	$	370

As of June 30, 2016, there was $0.6 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested common stock share awards granted under the Fee Plan. This cost is expected to be recognized over a weighted average period of 0.6 years.

Deferred Compensation Plan — The Company’s non-qualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which is not shareholder-approved, was adopted by the Board effective December 17, 1998, It was last amended and restated on May 18, 2016, effective as of June 30, 2016. It provides certain eligible employees the ability to defer any portion of their compensation until the participant’s retirement, termination, disability or death, or a change in control of the Company. Using the Company’s common stock, the Company matches 50% of the amounts deferred by certain senior management participants on a quarterly basis up to a total of $12,000 per year for the president, chief executive officer and executive vice presidents and $7,500 per year for senior vice presidents, global vice presidents and vice presidents (participants below the level of vice president are not eligible to receive matching contributions from the Company). Matching contributions and the associated earnings vest over a seven year service period. Deferred compensation amounts used to pay benefits, which are held in a rabbi trust, include investments in various mutual funds and shares of the Company’s common stock (see Note 7, Investments Held in Rabbi Trust). As of June 30, 2016 and December 31, 2015, liabilities of $8.5 million and $7.9 million, respectively, of the Deferred Compensation Plan were recorded in “Accrued employee compensation and benefits” in the accompanying Condensed Consolidated Balance Sheets.

Additionally, the Company’s common stock match associated with the Deferred Compensation Plan, with a carrying value of approximately $1.8 million and $1.6 million at June 30, 2016 and December 31, 2015, respectively, is included in “Treasury stock” in the accompanying Condensed Consolidated Balance Sheets.

The following table summarizes nonvested common stock activity as of June 30, 2016 and for the six months then ended:

Nonvested Common Stock	Shares (000s)		Weighted Average Grant-  Date Fair Value
Nonvested at January 1, 2016		3	$	19.53
Granted		6	$	29.76
Vested		(7)	$	28.14
Forfeited or expired		-	$	23.49
Nonvested at June 30, 2016		2	$	22.27

The following table summarizes information regarding shares of common stock granted and vested (in thousands, except per common stock amounts):

	Six Months Ended June 30,
	2016		2015
Number of shares of common stock granted		6		6
Weighted average grant-date fair value per common stock	$	29.76	$	24.69
Fair value of common stock vested	$	183	$	169
Cash used to settle the obligation	$	359	$	65

As of June 30, 2016, there was less than $0.1 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested common stock granted under the Deferred Compensation Plan. This cost is expected to be recognized over a weighted average period of 2.7 years.

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Segments and Geographic Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segments and Geographic Information

Note 17. Segments and Geographic Information

The Company operates within two regions, the Americas and EMEA. Each region represents a reportable segment comprised of aggregated regional operating segments, which portray similar economic characteristics. The Company aligns its business into two segments to effectively manage the business and support the customer care needs of every client and to respond to the demands of the Company’s global customers.

The reportable segments consist of (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, and provides outsourced customer contact management solutions (with an emphasis on technical support and customer service) and technical staffing and (2) EMEA, which includes Europe, the Middle East and Africa, and provides outsourced customer contact management solutions (with an emphasis on technical support and customer service), and fulfillment services. The sites within Latin America, Australia and the Asia Pacific Rim are included in the Americas segment given the nature of the business and client profile, which is primarily made up of U.S.-based companies that are using the Company’s services in these locations to support their customer contact management needs.

Information about the Company’s reportable segments is as follows (in thousands):

	Americas		EMEA		Other (1)		Consolidated
Three Months Ended June 30, 2016:
Revenues	$	305,211	$	59,152	$	39	$	364,402
Percentage of revenues		83.8%		16.2%		0.0%		100.0%
Depreciation, net	$	10,316	$	1,162	$	482	$	11,960
Amortization of intangibles	$	4,995	$	268	$	-	$	5,263
Income (loss) from operations	$	30,725	$	2,896	$	(20,219)	$	13,402
Other (expense), net						(373)		(373)
Income taxes						(3,891)		(3,891)
Net income							$	9,138
Total assets as of June 30, 2016	$	1,759,137	$	1,473,687	$	(2,013,833)	$	1,218,991
Three Months Ended June 30, 2015:
Revenues	$	249,682	$	57,752	$	19	$	307,453
Percentage of revenues		81.2%		18.8%		0.0%		100.0%
Depreciation, net	$	9,605	$	1,084	$	318	$	11,007
Amortization of intangibles	$	3,435	$	-	$	-	$	3,435
Income (loss) from operations	$	28,669	$	2,969	$	(13,421)	$	18,217
Other (expense), net						(626)		(626)
Income taxes						(4,679)		(4,679)
Net income							$	12,912
Total assets as of June 30, 2015	$	1,067,801	$	1,394,836	$	(1,534,068)	$	928,569
Six Months Ended June 30, 2016:
Revenues	$	567,287	$	117,777	$	84	$	685,148
Percentage of revenues		82.8%		17.2%		0.0%		100.0%
Depreciation, net	$	19,492	$	2,326	$	926	$	22,744
Amortization of intangibles	$	8,363	$	527	$	-	$	8,890
Income (loss) from operations	$	63,712	$	6,306	$	(36,346)	$	33,672
Other (expense), net						(475)		(475)
Income taxes						(10,105)		(10,105)
Net income							$	23,092
Six Months Ended June 30, 2015:
Revenues	$	513,855	$	117,247	$	36	$	631,138
Percentage of revenues		81.4%		18.6%		0.0%		100.0%
Depreciation, net	$	19,185	$	2,227	$	654	$	22,066
Amortization of intangibles	$	6,866	$	-	$	-	$	6,866
Income (loss) from operations	$	61,210	$	6,757	$	(27,209)	$	40,758
Other (expense), net						(1,728)		(1,728)
Income taxes						(10,479)		(10,479)
Net income							$	28,551

⁽¹⁾ Other items (including corporate and other costs, impairment costs, other income and expense, and income taxes) are shown for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the three and six months ended June 30, 2016 and 2015. Inter-segment revenues are not material to the Americas and EMEA segment results. The Company evaluates the performance of its geographic segments based on revenues and income (loss) from operations, and does not include segment assets or other income and expense items for management reporting purposes.

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Other Income (Expense)

6 Months Ended

Jun. 30, 2016

Other Income and Expenses [Abstract]

Other Income (Expense)

Note 18. Other Income (Expense)

Other income (expense) consists of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Foreign currency transaction gains (losses)	$	1,410	$	(90)	$	2,756	$	(1,025)
Gains (losses) on foreign currency derivative instruments not designated as hedges		(585)		67		(1,324)		(97)
Other miscellaneous income (expense)		242		(144)		188		126
	$	1,067	$	(167)	$	1,620	$	(996)

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Related Party Transactions

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Note 19. Related Party Transactions

In January 2008, the Company entered into a lease for a customer contact management center located in Kingstree, South Carolina. The landlord, Kingstree Office One, LLC, is an entity controlled by John H. Sykes, the founder, former Chairman and Chief Executive Officer of the Company and the father of Charles Sykes, President and Chief Executive Officer of the Company. The lease payments on the 20-year lease were negotiated at or below market rates, and the lease is cancellable at the option of the Company. There are significant penalties for early cancellation which decrease over time. The Company paid $0.1 million to the landlord during both the three months ended June 30, 2016 and 2015 and $0.2 million during both the six months ended June 30, 2016 and 2015 under the terms of the lease.

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Overview and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Business

Business — Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) provides comprehensive outsourced customer contact management solutions and services in the business process outsourcing arena to companies, primarily within the communications, financial services, technology/consumer, transportation and leisure, and healthcare industries. SYKES provides flexible, high-quality outsourced customer contact management services (with an emphasis on inbound technical support, demand generation and customer service), which includes customer assistance, healthcare and roadside assistance, technical support, and product and service sales to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels encompassing phone, e-mail, social media, text messaging, chat and digital self-service. SYKES complements its outsourced customer contact management services with various enterprise support services in the United States that encompass services for a company’s internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services, which includes order processing, payment processing, inventory control, product delivery and product returns handling. The Company has operations in two reportable segments entitled (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, in which the client base is primarily companies in the United States that are using the Company’s services to support their customer management needs; and (2) EMEA, which includes Europe, the Middle East and Africa.

Acquisitions

On April 1, 2016, the Company completed the acquisition of Clear Link Holdings, LLC (“Clearlink”), pursuant to a definitive Agreement and Plan of Merger (the “Merger Agreement”), dated March 6, 2016. The Company has reflected the operating results in the Condensed Consolidated Statements of Operations since April 1, 2016. See Note 2, Acquisitions, for additional information on the acquisition.

In July 2015, the Company completed the acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”), pursuant to a definitive Share Sale and Purchase Agreement, dated July 2, 2015. The Company has reflected the operating results in the Condensed Consolidated Statements of Operations since July 2, 2015. See Note 2, Acquisitions, for additional information on the acquisition.

Basis of Presentation

Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2016. For further information, refer to the consolidated financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the Securities and Exchange Commission (“SEC”) on February 29, 2016.

Principles of Consolidation

Principles of Consolidation — The condensed consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

Use of Estimates — The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Subsequent Events

Subsequent Events — Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. There were no material subsequent events that required recognition or disclosure in the accompanying condensed consolidated financial statements.

Customer-Acquisition Advertising Costs

Customer-Acquisition Advertising Costs — The Company utilizes direct-response advertising the primary purpose of which is to elicit purchases from its clients’ customers. These costs are capitalized when they are expected to result in probable future benefits and are amortized over the period during which future benefits are expected to be received, which is generally less than one month. All other advertising costs are expensed as incurred. As of June 30, 2016, the Company had less than $0.1 million of capitalized direct-response advertising costs included in “Prepaid expenses” in the accompanying Condensed Consolidated Balance Sheet (none in 2015). Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Income Statements for both the three and six months ended June 30, 2016 were $8.0 million (none in 2015).

Reclassifications

Reclassifications — Certain balances in the prior period have been reclassified to conform to current period presentation.

New Accounting Standards Not Yet Adopted

New Accounting Standards Not Yet Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The amendments in ASU 2014-09 outline a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and indicate that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date” (“ASU 2015-14”). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. An entity should apply the amendments using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company is currently evaluating the methods of adoption and the impact that the adoption of ASU 2014-09 may have on its financial condition, results of operations and cash flows.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). These amendments modify how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such, these investments may be measured at cost. These amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect the adoption of ASU 2016-01 to materially impact its financial condition, results of operations and cash flows.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840 “Leases”. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its financial condition, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815) – Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (“ASU 2016-05”). These amendments clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. These amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Entities have the option to apply the amendments on either a prospective basis or a modified retrospective basis. The Company is evaluating the methods of adoption but does not expect the adoption of ASU 2016-05 to materially impact its financial condition, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU 2016-08”). These amendments clarify the implementation guidance on principal versus agent considerations and require entities to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing” (“ASU 2016-10”). These amendments clarify the identification of performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition and Derivatives and Hedging: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 Emerging Issues Task Force Meeting (“EITF”)” (“ASU 2016-11”). These rescissions include changes to topics pertaining to accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”). These amendments clarify the guidance in certain narrow areas and add several practical expedients. These ASUs affect the guidance in ASU 2014-09, which is not yet effective. The effective date and transition requirements for ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12 are the same as the effective date and transition requirements of ASU 2014-09, as updated by ASU 2015-14. The Company is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). These amendments are intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. These amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. Entities have the option to apply the amendments on either a prospective basis or a modified retrospective basis. The Company is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). These amendments require measurement and recognition of expected versus incurred credit losses for financial assets held. These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

New Accounting Standards Recently Adopted

New Accounting Standards Recently Adopted

In June 2014, the FASB issued ASU 2014-12, “Compensation – Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification (“ASC”) Topic 718, “Compensation — Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. These amendments, adopted prospectively, were effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The adoption of ASU 2014-12 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20) Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). The amendments eliminate from U.S. GAAP the concept of extraordinary items as part of the FASB’s initiative to reduce complexity in accounting standards. These amendments, adopted prospectively, were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-01 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) Amendments to the Consolidation Analysis)” (“ASU 2015-02”). The amendments are intended to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. These amendments affect the consolidation evaluation for reporting organizations. In addition, the amendments simplify and improve current U.S. GAAP by reducing the number of consolidation models. These amendments, adopted retrospectively, were effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-02 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. These amendments were effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of ASU 2015-03 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). These amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. These amendments, adopted prospectively, were effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The adoption of ASU 2015-05 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). These amendments eliminate the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. These amendments, adopted prospectively, were effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The adoption of ASU 2015-16 on January 1, 2016 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). These amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The existing requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by these amendments. These amendments, adopted prospectively, were effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of ASU 2015-17 on January 1, 2016 resulted in the reclassification of $12.0 million of current deferred tax assets included in “Other current assets” and $1.1 million of current deferred tax liabilities included in “Current deferred income tax liabilities” to noncurrent deferred income tax assets and liabilities. All future deferred tax assets and liabilities will be classified as noncurrent. No prior periods were adjusted.

Financial Instruments

ASC 825 “Financial Instruments” (“ASC 825”) permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to use the fair value option permitted under ASC 825 for any of its financial assets and financial liabilities that are not already recorded at fair value.

Determination of Fair Value — The Company generally uses quoted market prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access to determine fair value, and classifies such items in Level 1. Fair values determined by Level 2 inputs utilize inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, and inputs other than quoted market prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, currency rates, etc. Assets or liabilities valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable.

The following section describes the valuation methodologies used by the Company to measure assets and liabilities at fair value on a recurring basis, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified.

Money Market and Open-End Mutual Funds — The Company uses quoted market prices in active markets to determine the fair value. These items are classified in Level 1 of the fair value hierarchy.

Foreign Currency Forward Contracts and Options — The Company enters into foreign currency forward contracts and options over the counter and values such contracts using quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk. The key inputs include forward or option foreign currency exchange rates and interest rates. These items are classified in Level 2 of the fair value hierarchy.

Embedded Derivatives — The Company uses significant unobservable inputs to determine the fair value of embedded derivatives, which are classified in Level 3 of the fair value hierarchy. These unobservable inputs include expected cash flows associated with the lease, currency exchange rates on the day of commencement, as well as forward currency exchange rates; results of which are adjusted for credit risk. These items are classified in Level 3 of the fair value hierarchy. See Note 6, Financial Derivatives, for further information.

Investments Held in Rabbi Trust — The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 7, Investments Held in Rabbi Trust, and Note 16, Stock-Based Compensation.

Guaranteed Investment Certificates — Guaranteed investment certificates, with variable interest rates linked to the prime rate, approximate fair value due to the automatic ability to re-price with changes in the market; such items are classified in Level 2 of the fair value hierarchy.

Contingent Consideration — The Company uses significant unobservable inputs to determine the fair value of contingent consideration, which is classified in Level 3 of the fair value hierarchy. The contingent consideration recorded related to the Qelp acquisition and liabilities assumed as part of the Clearlink acquisition was recognized at fair value using a discounted cash flow methodology and a discount rate of approximately 14.0% and 10.0%, respectively. The discount rates vary dependent on the specific risks of each acquisition including the country of operation, the nature of services and complexity of the acquired business, and other similar factors, all of which are significant inputs not observable in the market. Significant increases or decreases in any of the inputs in isolation would result in a significantly higher or lower fair value measurement.

Fair Value Measurements

ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy:

● Level 1 — Quoted prices for identical instruments in active markets.

● Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

● Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Fair Value of Financial Instruments — The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

● Cash, short-term and other investments, investments held in rabbi trust and accounts payable — The carrying values for cash, short-term and other investments, investments held in rabbi trust and accounts payable approximate their fair values.

● Foreign currency forward contracts and options — Foreign currency forward contracts and options, including premiums paid on options, are recognized at fair value based on quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk.

● Embedded derivatives — Embedded derivatives within certain hybrid lease agreements are bifurcated from the host contract and recognized at fair value based on pricing models or formulas using significant unobservable inputs, including adjustments for credit risk.

● Long-term debt — The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates.

● Contingent consideration — The contingent consideration is recognized at fair value based on the discounted cash flow method.

Fair Value Measurements — ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements. ASC 820-10-20 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Foreign Currency and Derivative Instruments

Cash Flow Hedges – The Company has derivative assets and liabilities relating to outstanding forward contracts and options, designated as cash flow hedges, as defined under ASC 815 “Derivatives and Hedging” (“ASC 815”), consisting of Philippine Peso, Costa Rican Colon, Hungarian Forint and Romanian Leu contracts. These contracts are entered into to protect against the risk that the eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates.

Deferred Revenue

The Company receives up-front fees in connection with certain contracts. The deferred revenue is earned over the service periods of the respective contracts, which range from 30 days to seven years. Deferred revenue included in current liabilities in the accompanying Condensed Consolidated Balance Sheets includes the up-front fees associated with services to be provided over the ensuing twelve month period and the up-front fees associated with services to be provided over multiple years in connection with contracts that contain cancellation and refund provisions, whereby the manufacturers or customers can terminate the contracts and demand pro-rata refunds of the up-front fees with short notice. Deferred revenue from estimated penalties and holdbacks results from the failure to meet specified minimum service levels in certain contracts and other performance based contingencies. Deferred revenue from estimated chargebacks reflects the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred.

Income Taxes

Earnings associated with the investments in the Company’s foreign subsidiaries are considered to be indefinitely reinvested outside of the U.S. Therefore, a U.S. provision for income taxes on those earnings or translation adjustments has not been recorded, as permitted by criterion outlined in ASC 740 “Income Taxes.” Determination of any unrecognized deferred tax liability related to investments in foreign subsidiaries is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates.

Earnings Per Share

Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust using the treasury stock method.

Segments and Geographic Information

The Company operates within two regions, the Americas and EMEA. Each region represents a reportable segment comprised of aggregated regional operating segments, which portray similar economic characteristics. The Company aligns its business into two segments to effectively manage the business and support the customer care needs of every client and to respond to the demands of the Company’s global customers.

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2016

Clearlink [Member]

Summary of Consideration Paid and Transferred

The Clearlink purchase price totaled $207.9 million, consisting of the following:

	Total
Cash (1)	$	209,186
Working capital adjustment		(1,278)
	$	207,908
(1) Funded through borrowings under the Company’s credit agreement. See Note 10, Borrowings, for more information.

Summary of Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the estimated Clearlink acquisition date fair values of the assets acquired and liabilities assumed, all included in the Americas segment (in thousands):

	April 1, 2016
Cash and cash equivalents	$	2,584
Receivables (1)		16,801
Prepaid expenses		1,553
Total current assets		20,938
Property and equipment		12,869
Goodwill		70,223
Intangibles		121,400
Deferred charges and other assets		229
Accounts payable		(3,564)
Accrued employee compensation and benefits		(1,610)
Deferred revenue		(4,620)
Other accrued expenses and current liabilities		(6,324)
Total current liabilities		(16,118)
Other long-term liabilities		(1,633)
	$	207,908
(1) The fair value equals the gross contractual value of the receivables.

Summary of Purchased Intangible Assets

The following table presents the Company’s purchased intangibles assets as of April 1, 2016, the Clearlink acquisition date (in thousands):

	Amount Assigned		Weighted Average  Amortization Period  (years)
Customer relationships	$	63,800		13
Trade name		2,400		7
Non-compete agreements		1,800		3
Proprietary software		700		5
Indefinite-lived domain names		52,700		N/A
	$	121,400		7

Schedule of Revenues and Net Income of Clearlink

The amount of Clearlink’s revenues and net income since the April 1, 2016 acquisition date, included in the Company’s Condensed Consolidated Statements of Operations for both the three and six months ended June 30, 2016, were as follows (in thousands):

	From April 1, 2016   Through June 30, 2016
Revenues	$	36,362
Net income	$	791

Schedule of Unaudited Pro Forma Combined Revenues and Net Earnings

The following table presents the unaudited pro forma combined revenues and net earnings as if Clearlink had been included in the consolidated results of the Company for the entire three and six month periods ended June 30, 2016 and 2015. The pro forma financial information is not indicative of the results of operations that would have been achieved if the acquisition and related borrowings had taken place on January 1, 2016 and 2015 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Revenues	$	364,403	$	337,833	$	718,977	$	690,073
Net income	$	10,975	$	13,398	$	25,895	$	29,450
Net income per common share:
Basic	$	0.26	$	0.32	$	0.62	$	0.70
Diluted	$	0.26	$	0.32	$	0.62	$	0.70

Acquisition-Related Costs

Acquisition-related costs associated with Clearlink in the accompanying Condensed Consolidated Statement of Operations were as follows (none in 2015) (in thousands):

		Three Months Ended   June 30, 2016		Six Months Ended    June 30, 2016
Transaction and integration costs: (1)
	Americas	$	29	$	29
	Other		2,934		4,376
	(1)Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

Qelp [Member]

Summary of Consideration Paid and Transferred

As of the Qelp acquisition date, the total consideration paid or to be paid by the Company for the Qelp acquisition is summarized below (in thousands):

	Total
Cash	$	9,885
Contingent consideration		6,000
Working capital adjustment		(65)
	$	15,820

Summary of Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the Qelp acquisition date fair values of the assets acquired and liabilities assumed, all included in the EMEA segment (in thousands):

	July 2, 2015
Cash and cash equivalents	$	450
Receivables (1)		1,471
Prepaid expenses		24
Total current assets		1,945
Property and equipment		2,168
Goodwill		10,054
Intangibles		6,000
Deferred charges and other assets		55
Short-term debt		(323)
Accrued employee compensation and benefits		(207)
Income taxes payable		(94)
Deferred revenue		(967)
Other accrued expenses and current liabilities		(1,030)
Total current liabilities		(2,621)
Other long-term liabilities (2)		(1,781)
	$	15,820
(1) The fair value equals the gross contractual value of the receivables.
(2) Primarily includes long-term deferred tax liabilities.

Summary of Purchased Intangible Assets

The following table presents the Company’s purchased intangibles assets as of July 2, 2015, the Qelp acquisition date (in thousands):

	Amount Assigned		Weighted Average  Amortization Period  (years)
Customer relationships	$	5,400		7
Trade name and trademarks		100		3
Content library		500		2
	$	6,000		7

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Costs Associated with Exit or Disposal Activities (Tables)

6 Months Ended

Jun. 30, 2016

Restructuring and Related Activities [Abstract]

Cumulative Costs Expected and Incurred as a Result of Exit Plans

The cumulative costs expected and incurred as a result of the Exit Plans were as follows as of June 30, 2016 (in thousands):

	Americas Fourth  Quarter 2011  Exit Plan		Americas Third  Quarter 2010  Exit Plan		Total
Lease obligations and facility exit costs	$	1,365	$	6,729	$	8,094
Non-cash impairment charges		480		3,847		4,327
Total	$	1,845	$	10,576	$	12,421

Summary of Accrued Liability Associated with Exit Plans' Exit or Disposal Activities and Related Charges (Reversals)

The following table summarizes the accrued liability associated with the Exit Plans’ exit or disposal activities and related charges for the three and six months ended June 30, 2016 and 2015 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Beginning accrual	$	527	$	1,346	$	733	$	1,558
Lease obligations and facility exit costs		-		-		-		-
Cash payments (1)		(208)		(196)		(414)		(408)
Ending accrual	$	319	$	1,150	$	319	$	1,150
(1) Related to lease obligations and facility exit costs.

Summary of Accrued Liability Associated with the Company's Exit Plans

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with its exit and disposal activities, by plan, as of June 30, 2016 and December 31, 2015 (in thousands):

	Americas Fourth  Quarter 2011  Exit Plan		Americas Third  Quarter 2010  Exit Plan		Total
June 30, 2016
Short-term accrued restructuring liability (1)	$	76	$	243	$	319
Long-term accrued restructuring liability (2)		-		-		-
Ending accrual at June 30, 2016	$	76	$	243	$	319
December 31, 2015
Short-term accrued restructuring liability (1)	$	144	$	487	$	631
Long-term accrued restructuring liability (2)		22		80		102
Ending accrual at December 31, 2015	$	166	$	567	$	733

(1)	Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.
(2)	Included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

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Fair Value (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company’s assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following (in thousands):

				Fair Value Measurements at June 30, 2016 Using:
		Balance at		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
		June 30, 2016		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	1,429	$	-	$	1,429	$	-
Embedded derivatives	(1)		119		-		-		119
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		6,607		6,607		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		1,908		1,908		-		-
Guaranteed investment certificates	(3)		95		-		95		-
		$	10,158	$	8,515	$	1,524	$	119
Liabilities:
Long-term debt	(4)	$	272,000	$	-	$	272,000	$	-
Foreign currency forward and option contracts	(1)		2,255		-		2,255		-
Embedded derivatives	(1)		76		-		-		76
Contingent consideration included in “Other accrued expenses and current liabilities”	(5)		3,772		-		-		3,772
Contingent consideration included in “Other long-term liabilities”	(5)		5,924		-		-		5,924
		$	284,027	$	-	$	274,255	$	9,772
				Fair Value Measurements at December 31, 2015 Using:
		Balance at		Quoted Prices in Active Markets For  Identical Assets		Significant Other       Observable       Inputs		Significant    Unobservable    Inputs
		December 31, 2015		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	10,962	$	-	$	10,962	$	-
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		6,229		6,229		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		1,622		1,622		-		-
Guaranteed investment certificates	(3)		86		-		86		-
		$	18,899	$	7,851	$	11,048	$	-
Liabilities:
Long-term debt	(4)	$	70,000	$	-	$	70,000	$	-
Foreign currency forward and option contracts	(1)		835		-		835		-
Contingent consideration included in “Other long-term liabilities”	(5)		6,280		-		-		6,280
		$	77,115	$	-	$	70,835	$	6,280

⁽¹⁾ See Note 6, Financial Derivatives, for the classification in the accompanying Condensed Consolidated Balance Sheets.

⁽²⁾ Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets. See Note 7, Investments Held in Rabbi Trust.

⁽³⁾ Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.

⁽⁴⁾ The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 10, Borrowings.

⁽⁵⁾ In the accompanying Condensed Consolidated Balance Sheets.

Rollforward of Net Asset (Liability) Activity of Fair Value of Embedded Derivatives

A rollforward of the net asset (liability) activity in the Company’s fair value of the embedded derivatives is as follows (in thousands) (none in 2015):

	Fair Value
Balance at January 1, 2016	$	-
Gain (loss) recognized in “Other income (expense)” (1)		46
Effect of foreign currency		(3)
Balance at June 30, 2016	$	43
Unrealized gain (loss) for the three months ended June 30, 2016	$	(12)
Unrealized gain (loss) for the six months ended June 30, 2016	$	43

⁽¹⁾  Includes realized and unrealized gain (loss).

Rollforward of Fair Value of Contingent Consideration

A rollforward of the activity in the Company’s fair value of the contingent consideration is as follows (in thousands):

	Fair Value
Balance at January 1, 2015	$	-
Acquisition (1)		6,000
Payments		-
Imputed interest/adjustments		408
Effect of foreign currency		(128)
Balance at December 31, 2015		6,280
Acquisition (2)		2,779
Payments		-
Imputed interest/adjustments		509
Effect of foreign currency		128
Balance at June 30, 2016	$	9,696

(1)	Related to the Qelp acquisition on July 2, 2015. See Note 2, Acquisitions.
(2)	Liability acquired as part of the Clearlink acquisition on April 1, 2016. See Note 2, Acquisitions.

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Company's Purchased Intangible Assets

The following table presents the Company’s purchased intangible assets as of June 30, 2016 (in thousands):

	Gross Intangibles		Accumulated       Amortization		Net Intangibles		Weighted Average  Amortization Period (years)
Intangible assets subject to amortization:
Customer relationships	$	167,628	$	(66,842)	$	100,786		10
Trade names and trademarks		14,100		(6,235)		7,865		7
Non-compete agreements		2,997		(1,347)		1,650		2
Content library		500		(250)		250		2
Proprietary software		1,550		(885)		665		3
Favorable lease agreement		449		(449)		-		2
Intangible assets not subject to amortization:
Domain names		52,700		-		52,700		N/A
	$	239,924	$	(76,008)	$	163,916		6

The following table presents the Company’s purchased intangible assets as of December 31, 2015 (in thousands):

	Gross Intangibles		Accumulated       Amortization		Net Intangibles		Weighted Average  Amortization Period (years)
Intangible assets subject to amortization:
Customer relationships	$	102,594	$	(58,294)	$	44,300		8
Trade names and trademarks		11,698		(5,470)		6,228		8
Content library		491		(123)		368		2
Non-compete agreements		1,190		(1,190)		-		2
Proprietary software		850		(850)		-		2
Favorable lease agreement		449		(449)		-		2
	$	117,272	$	(66,376)	$	50,896		8

Estimated Future Amortization Expense

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to June 30, 2016, is as follows (in thousands):

Years Ending December 31,	Amount
2016 (remaining six months)	$	10,433
2017		20,755
2018		14,495
2019		13,443
2020		10,783
2021		6,397
2022 and thereafter		34,910

Changes in Goodwill

Changes in goodwill for the six months ended June 30, 2016 consist of the following (in thousands):

	January 1, 2016		Acquisition (1)		Effect of Foreign  Currency		June 30, 2016
Americas	$	186,049	$	70,223	$	1,848	$	258,120
EMEA		9,684		-		345		10,029
	$	195,733	$	70,223	$	2,193	$	268,149

Changes in goodwill for the year ended December 31, 2015 consist of the following (in thousands):

	January 1, 2015		Acquisition (1)		Effect of Foreign  Currency		December 31, 2015
Americas	$	193,831	$	-	$	(7,782)	$	186,049
EMEA		-		10,054		(370)		9,684
	$	193,831	$	10,054	$	(8,152)	$	195,733

⁽¹⁾ See Note 2, Acquisitions, for further information.

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Financial Derivatives (Tables)

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges

The deferred gains (losses) and related taxes on the Company’s cash flow hedges recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) in the accompanying Condensed Consolidated Balance Sheets are as follows (in thousands):

	June 30, 2016		December 31, 2015
Deferred gains (losses) in AOCI	$	(75)	$	(558)
Tax on deferred gains (losses) in AOCI		(18)		31
Deferred gains (losses) in AOCI, net of taxes	$	(93)	$	(527)
Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months	$	(39)

Outstanding Foreign Currency Forward Contracts, Options and Embedded Derivatives

The Company had the following outstanding foreign currency forward contracts and options, and embedded derivatives (in thousands):

	As of June 30, 2016				As of December 31, 2015
Contract Type	Notional     Amount in     USD		Settle Through     Date		Notional     Amount in     USD		Settle Through     Date
Cash flow hedges:
Options:
Philippine Pesos	$	54,000		March 2017	$	71,750		December 2016
Forwards:
Costa Rican Colones		32,000		September 2017		34,500		November 2016
Hungarian Forints		1,330		December 2016		-		-
Romanian Leis		3,308		December 2016		-		-
Net investment hedges:
Forwards:
Euros		76,933		September 2017		63,470		March 2016
Non-designated hedges:
Forwards		58,683		September 2016		50,603		March 2016
Embedded derivatives		11,626		April 2030		-		-

Derivative Instruments Fair Value

The following tables present the fair value of the Company’s derivative instruments included in the accompanying Condensed Consolidated Balance Sheets (in thousands):

	Derivative Assets
	June 30, 2016		December 31, 2015
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (1)	$	921	$	544
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (1)		-		10,161
Foreign currency forward contracts (2)		419		-
		1,340		10,705
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (1)		89		257
Embedded derivatives (1)		3		-
Embedded derivatives (2)		116		-
Total derivative assets	$	1,548	$	10,962
	Derivative Liabilities
	June 30, 2016		December 31, 2015
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (3)	$	426	$	396
Foreign currency forward and option contracts (4)		36		-
		462		396
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (4)		1,295		-
		1,757		396
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (3)		498		439
Embedded derivatives (3)		4		-
Embedded derivatives (4)		72		-
Total derivative liabilities	$	2,331	$	835

(1)	Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets.
(2)	Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.
(3)	Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.
(4)	Included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

Effect of the Company's Derivative Instruments

The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the three months ended June 30, 2016 and 2015 (in thousands):

	Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)				Gain (Loss) Reclassified From Accumulated AOCI Into “Revenues” (Effective Portion)				Gain (Loss) Recognized in “Revenues” on Derivatives (Ineffective Portion and Amount Excluded  from Effectiveness Testing)
	June 30,				June 30,				June 30,
	2016		2015		2016		2015		2016		2015
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	(2,072)	$	357	$	4	$	739	$	-	$	1
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		2,414		(1,848)		-		-		-		-
	$	342	$	(1,491)	$	4	$	739	$	-	$	1

	Statements of Operations     Location	Gain (Loss) Recognized   on Derivatives
		June 30,
		2016		2015
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	Other income and (expense)	$	575	$	67
Foreign currency forward contracts	Revenues		-		4
Embedded derivatives	Other income and (expense)		10		-
		$	585	$	71

The following tables present the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the six months ended June 30, 2016 and 2015 (in thousands):

	Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)				Gain (Loss) Reclassified From Accumulated AOCI Into “Revenues” (Effective Portion)				Gain (Loss) Recognized in “Revenues” on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	June 30,				June 30,				June 30,
	2016		2015		2016		2015		2016		2015
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	431	$	2,412	$	(50)	$	1,328	$	-	$	2
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		(698)		4,510		-		-		-		-
	$	(267)	$	6,922	$	(50)	$	1,328	$	-	$	2

	Statements of Operations     Location	Gain (Loss) Recognized   on Derivatives
		June 30,
		2016		2015
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	Other income and (expense)	$	1,370	$	(97)
Foreign currency forward contracts	Revenues		-		4
Embedded derivatives	Other income and (expense)		(46)		-
		$	1,324	$	(93)

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Investments Held in Rabbi Trust (Tables)

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investments Held in Rabbi Trust, Classified as Trading

The Company’s investments held in rabbi trust, classified as trading securities and included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets, at fair value, consist of the following (in thousands):

	June 30, 2016				December 31, 2015
	Cost		Fair Value		Cost		Fair Value
Mutual funds	$	6,766	$	8,515	$	6,217	$	7,851

Components of Investment Income (Losses), Included in Other Income (Expense) in Accompanying Consolidated Statements of Operations

The mutual funds held in rabbi trust were 78% equity-based and 22% debt-based as of June 30, 2016. Net investment income (losses), included in “Other income (expense)” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Gross realized gains from sale of trading securities	$	-	$	17	$	-	$	20
Gross realized (losses) from sale of trading securities		-		-		-		(1)
Dividend and interest income		10		13		19		18
Net unrealized holding gains (losses)		134		(50)		154		73
Net investment income (losses)	$	144	$	(20)	$	173	$	110

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Deferred Revenue (Tables)

6 Months Ended

Jun. 30, 2016

Deferred Revenue Disclosure [Abstract]

Components of Deferred Revenue

Deferred revenue consists of the following (in thousands):

	June 30, 2016		December 31, 2015
Future service	$	24,847	$	22,112
Estimated potential penalties and holdbacks		8,452		6,007
Estimated chargebacks		4,382		-
	$	37,681	$	28,119

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Deferred Grants (Tables)

6 Months Ended

Jun. 30, 2016

Text Block [Abstract]

Schedule of Deferred Grants, Net of Accumulated Amortization

Deferred grants, net of accumulated amortization, consist of the following (in thousands):

	June 30, 2016		December 31, 2015
Property grants	$	4,063	$	4,377
Lease grants		496		513
Employment grants		117		149
Total deferred grants		4,676		5,039
Less: Property grants - short-term (1)		-		-
Less: Lease grants - short-term (1)		(84)		(80)
Less: Employment grants - short-term (1)		(117)		(149)
Total long-term deferred grants	$	4,475	$	4,810

⁽¹⁾ Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.

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Borrowings (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Components of Borrowings

Borrowings consist of the following (in thousands):

	June 30, 2016		December 31, 2015
Revolving credit facility	$	272,000	$	70,000
Less: Current portion		-		-
Total long-term debt	$	272,000	$	70,000

Information Related to Credit Agreements

The following table presents information related to our credit agreements (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Average daily utilization	$	278,769	$	70,198	$	174,385	$	72,249
Interest expense, including commitment fee (1)	$	1,079	$	320	$	1,454	$	638
Weighted average interest rate		1.6%		1.8%		1.9%		1.8%

⁽¹⁾ Excludes the amortization of deferred loan fees.

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Components of Accumulated Other Comprehensive Income (Loss)

The Company presents data in the Condensed Consolidated Statements of Changes in Shareholders’ Equity in accordance with ASC 220 “Comprehensive Income” (“ASC 220”). ASC 220 establishes rules for the reporting of comprehensive income (loss) and its components. The components of accumulated other comprehensive income (loss) consist of the following (in thousands):

	Foreign Currency Translation Gain (Loss)		Unrealized Gain (Loss) on Net Investment Hedge		Unrealized Actuarial Gain (Loss) Related to Pension Liability		Unrealized Gain (Loss) on Cash Flow Hedging Instruments		Unrealized Gain (Loss) on Post Retirement Obligation		Total
Balance at January 1, 2015	$	(22,076)	$	276	$	1,008	$	(111)	$	342	$	(20,561)
Pre-tax amount		(37,178)		6,101		121		1,708		(12)		(29,260)
Tax (provision) benefit		-		(2,207)		(2)		32		-		(2,177)
Reclassification of (gain) loss to net income		647		-		(53)		(2,195)		(63)		(1,664)
Foreign currency translation		6		-		(45)		39		-		-
Balance at December 31, 2015		(58,601)		4,170		1,029		(527)		267		(53,662)
Pre-tax amount		4,297		(698)		-		431		-		4,030
Tax (provision) benefit		-		265		-		(26)		-		239
Reclassification of (gain) loss to net income		-		-		(22)		28		(27)		(21)
Foreign currency translation		3		-		(4)		1		-		-
Balance at June 30, 2016	$	(54,301)	$	3,737	$	1,003	$	(93)	$	240	$	(49,414)

Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss)

The following table summarizes the amounts reclassified to net income from accumulated other comprehensive income (loss) and the associated line item in the accompanying Condensed Consolidated Statements of Operations (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,				Statements of Operations     Location
	2016		2015		2016		2015
Actuarial Gain (Loss) Related to Pension Liability: (1)
Pre-tax amount	$	10	$	10	$	22	$	21	Direct salaries and related costs
Tax (provision) benefit		-		-		-		-	Income taxes
Reclassification to net income		10		10		22		21
Gain (Loss) on Cash Flow Hedging Instruments: (2)
Pre-tax amount		4		740		(50)		1,330	Revenues
Tax (provision) benefit		3		5		22		11	Income taxes
Reclassification to net income		7		745		(28)		1,341
Gain (Loss) on Post Retirement Obligation: (1)
Pre-tax amount		14		14		27		28	General and administrative
Tax (provision) benefit		-		-		-		-	Income taxes
Reclassification to net income		14		14		27		28
Total reclassification of gain (loss) to net income	$	31	$	769	$	21	$	1,390

⁽¹⁾ See Note 15, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

⁽²⁾ See Note 6, Financial Derivatives, for further information

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Summary of Significant Tax Jurisdictions Currently under Audit

The significant tax jurisdictions currently under audit are as follows:

Tax Jurisdiction	Tax Years Ended
Canada	2003 to 2009

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Numbers of Shares Used in Earnings Per Share Computation

The numbers of shares used in the earnings per share computation are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Basic:
Weighted average common shares outstanding		41,970		42,008		41,838		42,095
Diluted:
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust		131		208		263		233
Total weighted average diluted shares outstanding		42,101		42,216		42,101		42,328
Anti-dilutive shares excluded from the diluted earnings per share calculation		21		27		21		24

Shares Repurchased

The shares repurchased under the Company’s share repurchase programs were as follows (in thousands, except per share amounts) (none in 2016):

	Total Number     of Shares		Range of Prices Paid Per Share				Total Cost of Shares
	Repurchased		Low		High		Repurchased
Three Months Ended:
June 30, 2015		279	$	24.14	$	24.79	$	6,833
Six Months Ended:
June 30, 2015		500	$	22.81	$	24.79	$	11,969

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Commitments and Loss Contingency (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of June 30, 2016, including the impact of the leases assumed in connection with the Clearlink acquisition (in thousands):

	Amount
2016 (remaining six months)	$	3,635
2017		9,256
2018		9,179
2019		9,317
2020		8,986
2021		7,115
2022 and thereafter		27,800
Total minimum payments required	$	75,288

Schedule of Future Minimum Purchases Remaining under Agreements

The following is a schedule of the future minimum purchases remaining under the agreements as of June 30, 2016, including the impact of the agreements assumed in connection with the Clearlink acquisition (in thousands):

	Amount
2016 (remaining six months)	$	5,513
2017		1,749
2018		652
2019		-
2020		-
2021		-
2022 and thereafter		-
Total minimum payments required	$	7,914

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Defined Benefit Pension Plan and Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Net Periodic Benefit Cost and Other Accumulated Comprehensive Income for Pension Plans

The following table provides information about the net periodic benefit cost for the Company’s pension plans (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Service cost	$	120	$	113	$	238	$	228
Interest cost		45		35		89		71
Recognized actuarial (gains)		(10)		(10)		(22)		(21)
Net periodic benefit cost	$	155	$	138	$	305	$	278

Company's Contributions to Employee Retirement Savings Plans

The Company’s contributions included in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
401(k) plan contributions	$	334	$	188	$	619	$	471

Post-Retirement Benefit Obligation and Unrealized Gain (Losses)

The postretirement benefit obligation included in “Other long-term liabilities” and the unrealized gains (losses) included in “Accumulated other comprehensive income” in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands):

	June 30, 2016		December 31, 2015
Postretirement benefit obligation	$	31	$	37
Unrealized gains (losses) in AOCI (1)	$	240	$	267

⁽¹⁾ Unrealized gains (losses) are impacted by changes in discount rates related to the postretirement obligation.

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company

The following table summarizes the stock-based compensation expense (primarily in the Americas), income tax benefits related to the stock-based compensation and excess tax benefits (deficiencies) (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Stock-based compensation (expense) (1)	$	(3,547)	$	(1,288)	$	(5,729)	$	(3,284)
Income tax benefit (2)		1,348		486		2,177		1,215
Excess tax benefit (deficiency) from stock-based compensation (3)		149		-		2,060		169

(1)	Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.
(2)	Included in “Income taxes” in the accompanying Condensed Consolidated Statements of Operations.
(3)	Included in “Additional paid-in capital” in the accompanying Condensed Consolidated Statements of Changes in Shareholders’ Equity.

Summary of Assumptions Used to Estimate Fair Value

The following table summarizes the assumptions used to estimate the fair value of SARs granted:

	Six Months Ended June 30,
	2016		2015
Expected volatility		25.3%		34.1%
Weighted-average volatility		25.3%		34.1%
Expected dividend rate		0.0%		0.0%
Expected term (in years)		5.0		5.0
Risk-free rate		1.5%		1.6%

Summary of Stock Appreciation Rights Activity

The following table summarizes SARs activity as of June 30, 2016 and for the six months then ended:

Stock Appreciation Rights	Shares (000s)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (000s)
Outstanding at January 1, 2016		481	$	-
Granted		323	$	-
Exercised		(151)	$	-
Forfeited or expired		(20)	$	-
Outstanding at June 30, 2016		633	$	-		8.7	$	1,974
Vested or expected to vest at June 30, 2016		633	$	-		8.7	$	1,974
Exercisable at June 30, 2016		118	$	-		6.3	$	797

Weighted Average Grant Date of SARs Granted and Total Intrinsic Value of SARs Exercised

The following table summarizes information regarding SARs granted and exercised (in thousands, except per SAR amounts):

	Six Months Ended June 30,
	2016		2015
Number of SARs granted		323		217
Weighted average grant-date fair value per SAR	$	7.68	$	8.17
Intrinsic value of SARs exercised	$	1,691	$	734
Fair value of SARs vested	$	1,520	$	1,302

Summary of Nonvested Stock Appreciation Rights

The following table summarizes nonvested SARs activity as of June 30, 2016 and for the six months then ended:

Nonvested Stock Appreciation Rights	Shares (000s)		Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2016		424	$	7.50
Granted		323	$	7.68
Vested		(213)	$	7.14
Forfeited or expired		(19)	$	7.68
Nonvested at June 30, 2016		515	$	7.76

Summary of Nonvested Restricted Shares and Restricted Stock Units

The following table summarizes nonvested restricted shares/RSUs activity as of June 30, 2016 and for the six months then ended:

Nonvested Restricted Shares and RSUs	Shares (000s)		Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2016		1,246	$	20.03
Granted		451	$	30.32
Vested		(421)	$	16.10
Forfeited or expired		(136)	$	20.60
Nonvested at June 30, 2016		1,140	$	25.49

Summary of Weighted Average Grant-Date Fair Value Granted and Total Fair Value of Restricted Shares and Restricted Stock Units Vested

The following table summarizes information regarding restricted shares/RSUs granted and vested (in thousands, except per restricted share/RSU amounts):

	Six Months Ended June 30,
	2016		2015
Number of restricted shares/RSUs granted		451		441
Weighted average grant-date fair value per restricted share/RSU	$	30.32	$	25.06
Fair value of restricted shares/RSUs vested	$	6,785	$	2,019

Summary of Nonvested Common Stock Units and Share Awards

The following table summarizes nonvested common stock share award activity as of June 30, 2016 and for the six months then ended:

Nonvested Common Stock Share Awards	Shares (000s)		Weighted Average Grant-  Date Fair Value
Nonvested at January 1, 2016		11	$	23.74
Granted		32	$	29.04
Vested		(16)	$	26.50
Forfeited or expired		(1)	$	24.70
Nonvested at June 30, 2016		26	$	28.56

Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Total Fair Value of Common Stock Units and Share Awards Vested

The following table summarizes information regarding common stock share awards granted and vested (in thousands, except per share award amounts):

	Six Months Ended June 30,
	2016		2015
Number of share awards granted		32		32
Weighted average grant-date fair value per share award	$	29.04	$	24.70
Fair value of share awards vested	$	410	$	370

Summary of Nonvested Common Stock

The following table summarizes nonvested common stock activity as of June 30, 2016 and for the six months then ended:

Nonvested Common Stock	Shares (000s)		Weighted Average Grant-  Date Fair Value
Nonvested at January 1, 2016		3	$	19.53
Granted		6	$	29.76
Vested		(7)	$	28.14
Forfeited or expired		-	$	23.49
Nonvested at June 30, 2016		2	$	22.27

Summary of Weighted Average Grant-Date Fair Value of Common Stock Awarded and Cash Used to Settle Company's Obligation under Deferred Compensation

The following table summarizes information regarding shares of common stock granted and vested (in thousands, except per common stock amounts):

	Six Months Ended June 30,
	2016		2015
Number of shares of common stock granted		6		6
Weighted average grant-date fair value per common stock	$	29.76	$	24.69
Fair value of common stock vested	$	183	$	169
Cash used to settle the obligation	$	359	$	65

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Segments and Geographic Information (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Company's Reportable Segments

Information about the Company’s reportable segments is as follows (in thousands):

	Americas		EMEA		Other (1)		Consolidated
Three Months Ended June 30, 2016:
Revenues	$	305,211	$	59,152	$	39	$	364,402
Percentage of revenues		83.8%		16.2%		0.0%		100.0%
Depreciation, net	$	10,316	$	1,162	$	482	$	11,960
Amortization of intangibles	$	4,995	$	268	$	-	$	5,263
Income (loss) from operations	$	30,725	$	2,896	$	(20,219)	$	13,402
Other (expense), net						(373)		(373)
Income taxes						(3,891)		(3,891)
Net income							$	9,138
Total assets as of June 30, 2016	$	1,759,137	$	1,473,687	$	(2,013,833)	$	1,218,991
Three Months Ended June 30, 2015:
Revenues	$	249,682	$	57,752	$	19	$	307,453
Percentage of revenues		81.2%		18.8%		0.0%		100.0%
Depreciation, net	$	9,605	$	1,084	$	318	$	11,007
Amortization of intangibles	$	3,435	$	-	$	-	$	3,435
Income (loss) from operations	$	28,669	$	2,969	$	(13,421)	$	18,217
Other (expense), net						(626)		(626)
Income taxes						(4,679)		(4,679)
Net income							$	12,912
Total assets as of June 30, 2015	$	1,067,801	$	1,394,836	$	(1,534,068)	$	928,569
Six Months Ended June 30, 2016:
Revenues	$	567,287	$	117,777	$	84	$	685,148
Percentage of revenues		82.8%		17.2%		0.0%		100.0%
Depreciation, net	$	19,492	$	2,326	$	926	$	22,744
Amortization of intangibles	$	8,363	$	527	$	-	$	8,890
Income (loss) from operations	$	63,712	$	6,306	$	(36,346)	$	33,672
Other (expense), net						(475)		(475)
Income taxes						(10,105)		(10,105)
Net income							$	23,092
Six Months Ended June 30, 2015:
Revenues	$	513,855	$	117,247	$	36	$	631,138
Percentage of revenues		81.4%		18.6%		0.0%		100.0%
Depreciation, net	$	19,185	$	2,227	$	654	$	22,066
Amortization of intangibles	$	6,866	$	-	$	-	$	6,866
Income (loss) from operations	$	61,210	$	6,757	$	(27,209)	$	40,758
Other (expense), net						(1,728)		(1,728)
Income taxes						(10,479)		(10,479)
Net income							$	28,551

⁽¹⁾ Other items (including corporate and other costs, impairment costs, other income and expense, and income taxes) are shown for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the three and six months ended June 30, 2016 and 2015. Inter-segment revenues are not material to the Americas and EMEA segment results. The Company evaluates the performance of its geographic segments based on revenues and income (loss) from operations, and does not include segment assets or other income and expense items for management reporting purposes.

XML

Other Income (Expense) (Tables)

6 Months Ended

Jun. 30, 2016

Other Income and Expenses [Abstract]

Schedule of Other Income (Expense)

Other income (expense) consists of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Foreign currency transaction gains (losses)	$	1,410	$	(90)	$	2,756	$	(1,025)
Gains (losses) on foreign currency derivative instruments not designated as hedges		(585)		67		(1,324)		(97)
Other miscellaneous income (expense)		242		(144)		188		126
	$	1,067	$	(167)	$	1,620	$	(996)

XML

Overview and Basis of Presentation - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) Segment	Jun. 30, 2015 USD ($)	Jan. 01, 2016 USD ($)	Dec. 31, 2015 USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of reportable segments | Segment			2
Current deferred income tax liabilities reclassified to noncurrent upon adoption of ASU 2015-17						$ 1,120,000
Accounting Standards Update 2015-17 [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Current deferred income tax assets reclassified to noncurrent upon adoption of ASU 2015-17					$ 12,000,000
Current deferred income tax liabilities reclassified to noncurrent upon adoption of ASU 2015-17					$ 1,100,000
Qelp [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Acquisition date			Jul. 02, 2015
Clearlink [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Acquisition date			Apr. 01, 2016
Prepaid Expenses And Other Current Assets [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Capitalized direct response advertising costs	$ 100,000	$ 0	$ 100,000	$ 0
Direct Salaries and Related Costs [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Total advertising costs	$ 8,000,000	$ 0	$ 8,000,000	$ 0

XML

Acquisitions - Additional Information (Detail) $ in Thousands			6 Months Ended
	Apr. 01, 2016 USD ($)	Jul. 02, 2015 USD ($)	Jun. 30, 2016 EUR (€)
Clearlink [Member]
Business Acquisition [Line Items]
Acquisition date			Apr. 01, 2016
Total Consideration paid	$ 207,908
Funds placed in escrow as security for indemnifications	$ 2,600
Clearlink [Member] | Americas [Member]
Business Acquisition [Line Items]
Percentage of outstanding membership units	100.00%
Acquisition date			Apr. 01, 2016
Amortization period of deductible intangibles and goodwill	15 years
Qelp [Member]
Business Acquisition [Line Items]
Acquisition date			Jul. 02, 2015
Total Consideration paid		$ 15,820
Consideration by cash, net of post-closing adjustments		$ 9,800
Maximum amount of contingent consideration | €			€ 10,000,000
Contingent consideration expected payment period			3 years
Contingent consideration description			The contingent purchase price to be paid over a three year period is based on achieving targets tied to revenues and earnings before interest, income taxes, depreciation and amortization ("EBITDA") for the years ended December 31, 2016, 2017 and 2018, not to exceed EUR 10.0 million.

XML

Acquisitions - Summary of Consideration Paid and Transferred (Detail) - USD ($) $ in Thousands	Apr. 01, 2016	Jul. 02, 2015	Jun. 30, 2016	Dec. 31, 2015	Jul. 31, 2015
Business Acquisition [Line Items]
Fair value of contingent consideration			$ 9,696	$ 6,280
Clearlink [Member]
Business Acquisition [Line Items]
Cash	$ 209,186
Fair value of contingent consideration	2,800
Working capital adjustment	(1,278)
Total Consideration paid	$ 207,908
Qelp [Member]
Business Acquisition [Line Items]
Cash		$ 9,885
Fair value of contingent consideration		6,000			$ 6,000
Working capital adjustment		(65)
Total Consideration paid		$ 15,820

XML

Acquisitions - Summary of Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Apr. 01, 2016	Dec. 31, 2015	Jul. 31, 2015	Jul. 02, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill	$ 268,149		$ 195,733			$ 193,831
Americas [Member]
Business Acquisition [Line Items]
Goodwill	258,120		186,049			$ 193,831
EMEA [Member]
Business Acquisition [Line Items]
Goodwill	$ 10,029		$ 9,684
Clearlink [Member] | Americas [Member]
Business Acquisition [Line Items]
Cash and cash equivalents		$ 2,584
Receivables		16,801
Prepaid expenses		1,553
Total current assets		20,938
Property and equipment		12,869
Goodwill		70,223
Intangibles		121,400
Deferred charges and other assets		229
Accounts payable		(3,564)
Accrued employee compensation and benefits		(1,610)
Deferred revenue		(4,620)
Other accrued expenses and current liabilities		(6,324)
Total current liabilities		(16,118)
Other long-term liabilities		(1,633)
Purchase price, total		$ 207,908
Qelp [Member]
Business Acquisition [Line Items]
Goodwill				$ 9,900
Purchase price, total				$ 15,600
Qelp [Member] | EMEA [Member]
Business Acquisition [Line Items]
Cash and cash equivalents					$ 450
Receivables					1,471
Prepaid expenses					24
Total current assets					1,945
Property and equipment					2,168
Goodwill					10,054
Intangibles					6,000
Deferred charges and other assets					55
Short-term debt					(323)
Accrued employee compensation and benefits					(207)
Income taxes payable					(94)
Deferred revenue					(967)
Other accrued expenses and current liabilities					(1,030)
Total current liabilities					(2,621)
Other long-term liabilities					(1,781)
Purchase price, total					$ 15,820

XML

Acquisitions - Summary of Purchased Intangible Assets (Detail) - USD ($) $ in Thousands			6 Months Ended	12 Months Ended
	Apr. 01, 2016	Jul. 02, 2015	Jun. 30, 2016	Dec. 31, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (years)			6 years	8 years
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (years)			10 years	8 years
Non-Compete Agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (years)			2 years	2 years
Proprietary Software [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (years)			3 years	2 years
Trade Name and Trademarks [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (years)			7 years	8 years
Content Library [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (years)			2 years	2 years
Clearlink [Member] | Americas [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned	$ 121,400
Weighted Average Amortization Period (years)	7 years
Clearlink [Member] | Americas [Member] | Indefinite-Lived Domain Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned	$ 52,700
Clearlink [Member] | Customer Relationships [Member] | Americas [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned	$ 63,800
Weighted Average Amortization Period (years)	13 years
Clearlink [Member] | Trade Name [Member] | Americas [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned	$ 2,400
Weighted Average Amortization Period (years)	7 years
Clearlink [Member] | Non-Compete Agreements [Member] | Americas [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned	$ 1,800
Weighted Average Amortization Period (years)	3 years
Clearlink [Member] | Proprietary Software [Member] | Americas [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned	$ 700
Weighted Average Amortization Period (years)	5 years
Qelp [Member] | EMEA [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned		$ 6,000
Weighted Average Amortization Period (years)		7 years
Qelp [Member] | Customer Relationships [Member] | EMEA [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned		$ 5,400
Weighted Average Amortization Period (years)		7 years
Qelp [Member] | Trade Name and Trademarks [Member] | EMEA [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned		$ 100
Weighted Average Amortization Period (years)		3 years
Qelp [Member] | Content Library [Member] | EMEA [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned		$ 500
Weighted Average Amortization Period (years)		2 years

XML

Acquisitions - Schedule of Revenues and Net Income of Clearlink (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Acquisition [Line Items]
Revenues	$ 364,402	$ 307,453	$ 685,148	$ 631,138
Net income	9,138	$ 12,912	$ 23,092	$ 28,551
Clearlink [Member] | Americas [Member]
Business Acquisition [Line Items]
Revenues	36,362
Net income	$ 791

XML

Acquisitions - Schedule of Unaudited Pro Forma Combined Revenues and Net Earnings (Detail) - Clearlink [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Acquisition [Line Items]
Revenues	$ 364,403	$ 337,833	$ 718,977	$ 690,073
Net income	$ 10,975	$ 13,398	$ 25,895	$ 29,450
Net income per common share:
Basic	$ 0.26	$ 0.32	$ 0.62	$ 0.70
Diluted	$ 0.26	$ 0.32	$ 0.62	$ 0.70

XML

Acquisitions - Acquisition-Related Costs (Detail) - Transaction and Integration Costs [Member] - General and Administrative [Member] - Clearlink [Member] - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Americas [Member]
Business Acquisition [Line Items]
Transaction and integration costs	$ 29	$ 29
Other Segments [Member]
Business Acquisition [Line Items]
Transaction and integration costs	$ 2,934	$ 4,376

XML

Costs Associated with Exit or Disposal Activities - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2016 USD ($)
Restructuring and Related Activities [Abstract]
Cash payment related to restructuring plan	$ 7.8
Lease termination date	Feb. 28, 2017

XML

Costs Associated with Exit or Disposal Activities - Cumulative Costs Expected and Incurred as a Result of Exit Plans (Detail) $ in Thousands	Jun. 30, 2016 USD ($)
Restructuring Cost and Reserve [Line Items]
Estimated total costs, some of which may have already been incurred, under the restructuring plan	$ 12,421
Fourth Quarter 2011 Exit Plan [Member] | Americas [Member]
Restructuring Cost and Reserve [Line Items]
Estimated total costs, some of which may have already been incurred, under the restructuring plan	1,845
Third Quarter 2010 Exit Plan [Member] | Americas [Member]
Restructuring Cost and Reserve [Line Items]
Estimated total costs, some of which may have already been incurred, under the restructuring plan	10,576
Lease Obligations and Facility Exit Costs [Member]
Restructuring Cost and Reserve [Line Items]
Estimated total costs, some of which may have already been incurred, under the restructuring plan	8,094
Lease Obligations and Facility Exit Costs [Member] | Fourth Quarter 2011 Exit Plan [Member] | Americas [Member]
Restructuring Cost and Reserve [Line Items]
Estimated total costs, some of which may have already been incurred, under the restructuring plan	1,365
Lease Obligations and Facility Exit Costs [Member] | Third Quarter 2010 Exit Plan [Member] | Americas [Member]
Restructuring Cost and Reserve [Line Items]
Estimated total costs, some of which may have already been incurred, under the restructuring plan	6,729
Non-cash Impairment Charges [Member]
Restructuring Cost and Reserve [Line Items]
Estimated total costs, some of which may have already been incurred, under the restructuring plan	4,327
Non-cash Impairment Charges [Member] | Fourth Quarter 2011 Exit Plan [Member] | Americas [Member]
Restructuring Cost and Reserve [Line Items]
Estimated total costs, some of which may have already been incurred, under the restructuring plan	480
Non-cash Impairment Charges [Member] | Third Quarter 2010 Exit Plan [Member] | Americas [Member]
Restructuring Cost and Reserve [Line Items]
Estimated total costs, some of which may have already been incurred, under the restructuring plan	$ 3,847

XML

Costs Associated with Exit or Disposal Activities - Summary of Accrued Liability Associated with Exit Plans' Exit or Disposal Activities and Related Charges (Reversals) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Restructuring Cost and Reserve [Line Items]
Beginning accrual	$ 527	$ 1,346	$ 733	$ 1,558
Cash payments	(208)	(196)	(414)	(408)
Ending accrual	319	1,150	319	1,150
Lease Obligations and Facility Exit Costs [Member]
Restructuring Cost and Reserve [Line Items]
Charges (reversals) of exit or disposal activities and related charges	$ 0	$ 0	$ 0	$ 0

XML

Costs Associated with Exit or Disposal Activities - Summary of Accrued Liability Associated with Company's Exit Plans (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Apr. 01, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Ending accrual	$ 319	$ 527	$ 733	$ 1,150	$ 1,346	$ 1,558
Other Accrued Expenses and Current Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Short-term accrued restructuring liability	319		631
Other Long-Term Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Long-term accrued restructuring liability			102
Fourth Quarter 2011 Exit Plan [Member] | Americas [Member]
Restructuring Cost and Reserve [Line Items]
Ending accrual	76		166
Fourth Quarter 2011 Exit Plan [Member] | Americas [Member] | Other Accrued Expenses and Current Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Short-term accrued restructuring liability	76		144
Fourth Quarter 2011 Exit Plan [Member] | Americas [Member] | Other Long-Term Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Long-term accrued restructuring liability			22
Third Quarter 2010 Exit Plan [Member] | Americas [Member]
Restructuring Cost and Reserve [Line Items]
Ending accrual	243		567
Third Quarter 2010 Exit Plan [Member] | Americas [Member] | Other Accrued Expenses and Current Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Short-term accrued restructuring liability	$ 243		487
Third Quarter 2010 Exit Plan [Member] | Americas [Member] | Other Long-Term Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Long-term accrued restructuring liability			$ 80

XML

Fair Value - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected future value of contingent consideration	$ 12,100,000
Embedded Derivatives [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net asset (liability) activity in the Company's fair value of the embedded derivatives	$ 43,000	$ 0
Qelp [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value discount rate	14.00%
Expected future value of contingent consideration	$ 9,100,000
Clearlink [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value discount rate	10.00%
Expected future value of contingent consideration	$ 3,000,000

XML

Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets:
Derivative Assets	$ 1,548	$ 10,962
Total assets	10,158	18,899
Liabilities:
Long-term debt	272,000	70,000
Derivative Liabilities	2,331	835
Total liabilities	284,027	77,115
Fair value of contingent consideration	9,696	6,280
Other Long-Term Liabilities [Member]
Liabilities:
Fair value of contingent consideration	5,924	6,280
Other Accrued Expenses and Current Liabilities [Member]
Liabilities:
Fair value of contingent consideration	3,772
Foreign Currency Forward and Option Contracts [Member] | Other Current Assets [Member]
Assets:
Derivative Assets	1,429	10,962
Foreign Currency Forward and Option Contracts [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]
Liabilities:
Derivative Liabilities	2,255	835
Embedded Derivatives [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]
Assets:
Derivative Assets	119
Embedded Derivatives [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]
Liabilities:
Derivative Liabilities	76
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]
Assets:
Investments held in rabbi trust for the Deferred Compensation Plan	6,607	6,229
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]
Assets:
Investments held in rabbi trust for the Deferred Compensation Plan	1,908	1,622
Guaranteed Investment Certificates [Member] | Deferred Charges and Other Assets [Member]
Assets:
Money market funds, open-end mutual funds and guaranteed investment certificates included in "Deferred charges and other assets"	95	86
Quoted Prices in Active Markets For Identical Assets Level 1 [Member]
Assets:
Total assets	8,515	7,851
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]
Assets:
Investments held in rabbi trust for the Deferred Compensation Plan	6,607	6,229
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]
Assets:
Investments held in rabbi trust for the Deferred Compensation Plan	1,908	1,622
Significant Other Observable Inputs Level 2 [Member]
Assets:
Total assets	1,524	11,048
Liabilities:
Long-term debt	272,000	70,000
Total liabilities	274,255	70,835
Significant Other Observable Inputs Level 2 [Member] | Foreign Currency Forward and Option Contracts [Member] | Other Current Assets [Member]
Assets:
Derivative Assets	1,429	10,962
Significant Other Observable Inputs Level 2 [Member] | Foreign Currency Forward and Option Contracts [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]
Liabilities:
Derivative Liabilities	2,255	835
Significant Other Observable Inputs Level 2 [Member] | Guaranteed Investment Certificates [Member] | Deferred Charges and Other Assets [Member]
Assets:
Money market funds, open-end mutual funds and guaranteed investment certificates included in "Deferred charges and other assets"	95	86
Significant Unobservable Inputs Level 3 [Member]
Assets:
Total assets	119
Liabilities:
Total liabilities	9,772	6,280
Significant Unobservable Inputs Level 3 [Member] | Other Long-Term Liabilities [Member]
Liabilities:
Fair value of contingent consideration	5,924	$ 6,280
Significant Unobservable Inputs Level 3 [Member] | Other Accrued Expenses and Current Liabilities [Member]
Liabilities:
Fair value of contingent consideration	3,772
Significant Unobservable Inputs Level 3 [Member] | Embedded Derivatives [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]
Assets:
Derivative Assets	119
Significant Unobservable Inputs Level 3 [Member] | Embedded Derivatives [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]
Liabilities:
Derivative Liabilities	$ 76

XML

Fair Value - Rollforward of Net Asset (Liability) Activity of Fair Value of Embedded Derivatives (Detail) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Unrealized gain (loss)		$ (611,000)	$ (88,000)
Embedded Derivatives [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		0
Gain (loss) recognized in "Other income (expense)"		46,000
Effect of foreign currency		(3,000)
Ending balance	$ 43,000	43,000
Unrealized gain (loss)	$ (12,000)	$ 43,000

XML

Fair Value - Rollforward of Fair Value of Contingent Consideration (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration, Beginning Balance	$ 6,280
Cash payments	0	$ 0
Imputed interest/adjustments	509	408
Effect of foreign currency	128	(128)
Contingent Consideration, Ending Balance	9,696	6,280
Qelp [Member]
Business Acquisition, Contingent Consideration [Line Items]
Acquisition		$ 6,000
Clearlink [Member]
Business Acquisition, Contingent Consideration [Line Items]
Acquisition	$ 2,779

XML

Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 239,924	$ 117,272
Accumulated Amortization	(76,008)	(66,376)
Net Intangibles	$ 163,916	$ 50,896
Weighted Average Amortization Period (years)	6 years	8 years
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 167,628	$ 102,594
Accumulated Amortization	(66,842)	(58,294)
Net Intangibles	$ 100,786	$ 44,300
Weighted Average Amortization Period (years)	10 years	8 years
Trade Name and Trademarks [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 14,100	$ 11,698
Accumulated Amortization	(6,235)	(5,470)
Net Intangibles	$ 7,865	$ 6,228
Weighted Average Amortization Period (years)	7 years	8 years
Content Library [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 500	$ 491
Accumulated Amortization	(250)	(123)
Net Intangibles	$ 250	$ 368
Weighted Average Amortization Period (years)	2 years	2 years
Non-Compete Agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 2,997	$ 1,190
Accumulated Amortization	(1,347)	$ (1,190)
Net Intangibles	$ 1,650
Weighted Average Amortization Period (years)	2 years	2 years
Proprietary Software [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 1,550	$ 850
Accumulated Amortization	(885)	$ (850)
Net Intangibles	$ 665
Weighted Average Amortization Period (years)	3 years	2 years
Favorable Lease Agreement [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 449	$ 449
Accumulated Amortization	$ (449)	$ (449)
Weighted Average Amortization Period (years)	2 years	2 years
Domain Names Not Subject To Amortization [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 52,700
Net Intangibles	$ 52,700

XML

Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands	Jun. 30, 2016 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2016 (remaining six months)	$ 10,433
2017	20,755
2018	14,495
2019	13,443
2020	10,783
2021	6,397
2022 and thereafter	$ 34,910

XML

Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Goodwill [Line Items]
Beginning Balance, Goodwill Net	$ 195,733	$ 193,831
Acquisition	70,223	10,054
Effect of Foreign Currency	2,193	(8,152)
Ending Balance, Goodwill Net	268,149	195,733
Americas [Member]
Goodwill [Line Items]
Beginning Balance, Goodwill Net	186,049	193,831
Acquisition	70,223
Effect of Foreign Currency	1,848	(7,782)
Ending Balance, Goodwill Net	258,120	186,049
EMEA [Member]
Goodwill [Line Items]
Beginning Balance, Goodwill Net	9,684
Acquisition		10,054
Effect of Foreign Currency	345	(370)
Ending Balance, Goodwill Net	$ 10,029	$ 9,684

XML

Goodwill and Intangible Assets - Additional Information (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2016 USD ($) Reporting_Unit	Dec. 31, 2015 USD ($)	Jul. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Goodwill [Line Items]
Number of reporting units | Reporting_Unit	5
Number of reporting units, fair value in excess of carrying value | Reporting_Unit	4
Goodwill	$ 268,149,000	$ 195,733,000		$ 193,831,000
Qelp [Member]
Goodwill [Line Items]
Acquisition date	Jul. 02, 2015
Purchase price of acquisition, carrying value			$ 15,600,000
Goodwill			$ 9,900,000
Goodwill Impairment Loss	$ 0	$ 0

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Financial Derivatives - Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Deferred gains (losses) in AOCI	$ (75)	$ (558)
Tax on deferred gains (losses) in AOCI	(18)	31
Deferred gains (losses) in AOCI, net of taxes	(93)	$ (527)
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months	$ (39)

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Financial Derivatives - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Maximum period of foreign currency hedge contracts	180 days
Maximum amount of loss due to credit risk	$ 1,500,000	$ 11,000,000
Total net settlement amount asset positions	600,000	10,200,000
Total net settlement amount liability positions	$ 1,400,000	$ 100,000

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Financial Derivatives - Outstanding Foreign Currency Forward Contracts, Options and Embedded Derivatives (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Option Contracts [Member] | Philippine Pesos [Member]
Derivative [Line Items]
Notional Amount	$ 54,000	$ 71,750
Settle Through Date	Mar. 31, 2017	Dec. 31, 2016
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Costa Rican Colones [Member]
Derivative [Line Items]
Notional Amount	$ 32,000	$ 34,500
Settle Through Date	Sep. 30, 2017	Nov. 30, 2016
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Hungarian Forints [Member]
Derivative [Line Items]
Notional Amount	$ 1,330
Settle Through Date	Dec. 31, 2016
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Romanian Leis [Member]
Derivative [Line Items]
Notional Amount	$ 3,308
Settle Through Date	Dec. 31, 2016
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Net Investment Hedges [Member] | Forwards [Member] | Euros [Member]
Derivative [Line Items]
Notional Amount	$ 76,933	$ 63,470
Settle Through Date	Sep. 30, 2017	Mar. 31, 2016
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Forwards [Member]
Derivative [Line Items]
Notional Amount	$ 58,683	$ 50,603
Settle Through Date	Sep. 30, 2016	Mar. 31, 2016
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member]
Derivative [Line Items]
Notional Amount	$ 11,626
Settle Through Date	Apr. 30, 2030

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Financial Derivatives - Derivative Instruments Fair Value (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 1,548	$ 10,962
Derivative Liabilities	2,331	835
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	1,757	396
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Option Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	1,340	10,705
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	89	257
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Accrued Expenses and Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	498	439
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	3
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Deferred Charges and Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	116
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Other Accrued Expenses and Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	4
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Other Long-Term Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	72
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Option Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	462	396
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member] | Option Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	921	544
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Accrued Expenses and Current Liabilities [Member] | Option Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	426	396
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Long-Term Liabilities [Member] | Option Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	36
Net Investment Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets		$ 10,161
Net Investment Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Deferred Charges and Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	419
Net Investment Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Long-Term Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ 1,295

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Financial Derivatives - Effect of Company's Derivative Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)	$ 342	$ (1,491)	$ (267)	$ 6,922
Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)	4	739	(50)	1,328
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)		1		2
Gain (Loss) Recognized on Derivatives	585	71	1,324	(93)
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Foreign Currency Forward Contracts [Member] | Option Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)	(2,072)	357	431	2,412
Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)	4	739	(50)	1,328
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)		1		2
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Net Investment Hedges [Member] | Foreign Currency Forward Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)	2,414	(1,848)	(698)	4,510
Other Income (Expense) [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized on Derivatives	575	67	1,370	(97)
Other Income (Expense) [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized on Derivatives	$ 10		$ (46)
Revenues [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized on Derivatives		$ 4		$ 4

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Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) - Mutual Funds [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Trading Securities and Other Trading Assets [Line Items]
Mutual funds, Cost	$ 6,766	$ 6,217
Other Current Assets [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Mutual funds, Fair Value	$ 8,515	$ 7,851

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Investments Held in Rabbi Trust - Additional Information (Detail)	Jun. 30, 2016
Equity-Based Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Mutual funds held in rabbi trust	78.00%
Debt-Based Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Mutual funds held in rabbi trust	22.00%

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Investments Held in Rabbi Trust - Components of Investment Income (Losses), Included in Other Income (Expense) in Accompanying Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Schedule of Trading Securities and Other Trading Assets [Line Items]
Gross realized gains from sale of trading securities		$ 17		$ 20
Gross realized (losses) from sale of trading securities				(1)
Dividend and interest income	$ 10	13	$ 19	18
Net unrealized holding gains (losses)	134	(50)	154	73
Other Income (Expense) [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Net investment income (losses)	$ 144	$ (20)	$ 173	$ 110

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Deferred Revenue - Components of Deferred Revenue (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Deferred Revenue Disclosure [Abstract]
Future service	$ 24,847	$ 22,112
Estimated potential penalties and holdbacks	8,452	6,007
Estimated chargebacks	4,382
Deferred revenue	$ 37,681	$ 28,119

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Deferred Revenue - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2016
Minimum [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue recognition, service period of contracts	30 days
Maximum [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue recognition, service period of contracts	7 years

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Deferred Grants - Schedule of Deferred Grants, Net of Accumulated Amortization (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Deferred Revenue Arrangement [Line Items]
Total deferred grants	$ 4,676	$ 5,039
Less: Property grants - short-term	0	0
Less: Lease grants - short-term	(84)	(80)
Less: Employment grants - short-term	(117)	(149)
Total long-term deferred grants	4,475	4,810
Total deferred grants	4,676	5,039
Other Long-Term Liabilities [Member]
Deferred Revenue Arrangement [Line Items]
Property grants	4,063	4,377
Lease grants	496	513
Other Accrued Expenses and Current Liabilities [Member]
Deferred Revenue Arrangement [Line Items]
Employment grants	$ 117	$ 149

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Borrowings - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Apr. 01, 2016	Dec. 31, 2015	May 31, 2015	May 12, 2015
Line of Credit Facility [Line Items]
Total long-term debt	$ 272,000,000		$ 272,000,000			$ 70,000,000
2015 Credit Agreement [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity								$ 440,000,000
Line of credit facility, expiration date			May 12, 2020
Varying installments due			$ 0
Commitment fee	0.125%	0.125%	0.125%	0.125%
Credit agreement customary fees description			The Company is required to pay certain customary fees, including a commitment fee determined quarterly based on the Company's leverage ratio and due quarterly in arrears as calculated on the average unused amount of the 2015 Credit Agreement.
Underwriting fee for credit agreement							$ 900,000
2015 Credit Agreement [Member] | Clearlink [Member]
Line of Credit Facility [Line Items]
Total long-term debt					$ 216,000,000
Short-term loan to Clearlink for working capital purposes					$ 4,000,000
2015 Credit Agreement [Member] | Non-Voting Capital Stock Direct Foreign Subsidiaries [Member]
Line of Credit Facility [Line Items]
Percentage of capital stock pledged under credit agreement	100.00%		100.00%
2015 Credit Agreement [Member] | Voting Capital Stock Direct Foreign Subsidiaries [Member]
Line of Credit Facility [Line Items]
Percentage of capital stock pledged under credit agreement	65.00%		65.00%
2012 Credit Agreement [Member]
Line of Credit Facility [Line Items]
Underwriting fee for credit agreement	$ 400,000		$ 400,000
2015 Credit Agreement Alternate-Currency Sub-Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity								200,000,000
2015 Credit Agreement Swingline Sub-Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity								10,000,000
2015 Credit Agreement Letter of Credit Sub-Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity								$ 35,000,000

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Borrowings - Components of Borrowings (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Total long-term debt	$ 272,000	$ 70,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Revolving credit facility	272,000	70,000
Less: Current portion	0	0
Total long-term debt	$ 272,000	$ 70,000

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Borrowings - Information Related to Credit Agreements (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Line of Credit Facility [Abstract]
Average daily utilization of borrowings	$ 278,769	$ 70,198	$ 174,385	$ 72,249
Interest expense including commitment fees, excluding amortization of deferred loan fees	$ 1,079	$ 320	$ 1,454	$ 638
Weighted average interest rate	1.60%	1.80%	1.90%	1.80%

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Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	$ (53,662)	$ (20,561)
Pre-tax amount	4,030	(29,260)
Tax (provision) benefit	239	(2,177)
Reclassification of (gain) loss to net income	(21)	(1,664)
Ending balance, accumulated other comprehensive income (loss)	(49,414)	(53,662)
Foreign Currency Translation Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	(58,601)	(22,076)
Pre-tax amount	4,297	(37,178)
Reclassification of (gain) loss to net income		647
Foreign currency translation	3	6
Ending balance, accumulated other comprehensive income (loss)	(54,301)	(58,601)
Unrealized Gain (Loss) on Net Investment Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	4,170	276
Pre-tax amount	(698)	6,101
Tax (provision) benefit	265	(2,207)
Ending balance, accumulated other comprehensive income (loss)	3,737	4,170
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	1,029	1,008
Pre-tax amount		121
Tax (provision) benefit		(2)
Reclassification of (gain) loss to net income	(22)	(53)
Foreign currency translation	(4)	(45)
Ending balance, accumulated other comprehensive income (loss)	1,003	1,029
Unrealized Gain (Loss) on Cash Flow Hedging Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	(527)	(111)
Pre-tax amount	431	1,708
Tax (provision) benefit	(26)	32
Reclassification of (gain) loss to net income	28	(2,195)
Foreign currency translation	1	39
Ending balance, accumulated other comprehensive income (loss)	(93)	(527)
Unrealized Gain (Loss) on Post Retirement Obligation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	267	342
Pre-tax amount		(12)
Reclassification of (gain) loss to net income	(27)	(63)
Ending balance, accumulated other comprehensive income (loss)	$ 240	$ 267

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Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Pre-tax amount	$ 13,029	$ 17,591	$ 33,197	$ 39,030
Tax (provision) benefit	3,891	4,679	10,105	10,479
Reclassification of gain (loss) to net income	9,138	12,912	23,092	28,551
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification of gain (loss) to net income	31	769	21	1,390
Reclassification out of Accumulated Other Comprehensive Income [Member] | Actuarial Gain (Loss) Related to Pension Liability [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification of gain (loss) to net income	10	10	22	21
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Cash Flow Hedging Instruments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax (provision) benefit	3	5	22	11
Reclassification of gain (loss) to net income	7	745	(28)	1,341
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Post Retirement Obligation [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification of gain (loss) to net income	14	14	27	28
Reclassification out of Accumulated Other Comprehensive Income [Member] | Direct Salaries and Related Costs [Member] | Actuarial Gain (Loss) Related to Pension Liability [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Pre-tax amount	10	10	22	21
Reclassification out of Accumulated Other Comprehensive Income [Member] | Revenues [Member] | Gain (Loss) on Cash Flow Hedging Instruments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Pre-tax amount	4	740	(50)	1,330
Reclassification out of Accumulated Other Comprehensive Income [Member] | General and Administrative [Member] | Gain (Loss) on Post Retirement Obligation [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Pre-tax amount	$ 14	$ 14	$ 27	$ 28

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Effective rate of tax	29.90%	26.60%	30.40%	26.80%
Statutory federal income tax rate	35.00%		35.00%
Amount of mandatory security deposit paid related to Notice of Objection	$ 14.3		$ 14.3		$ 13.4

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Income Taxes - Summary of Significant Tax Jurisdictions Currently under Audit (Detail)	6 Months Ended
	Jun. 30, 2016
Canada [Member]
Income Tax Examination [Line Items]
Significant tax jurisdictions currently under audit	2003 to 2009

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Earnings Per Share - Numbers of Shares Used in Earnings Per Share Computation (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Basic:
Weighted average common shares outstanding	41,970	42,008	41,838	42,095
Diluted:
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust	131	208	263	233
Total weighted average diluted shares outstanding	42,101	42,216	42,101	42,328
Anti-dilutive shares excluded from the diluted earnings per share calculation	21	27	21	24

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Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Mar. 16, 2016	Aug. 18, 2011
Equity, Class of Treasury Stock [Line Items]
Total Number of Shares Repurchased	279,000		500,000
2011 Share Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Maximum amount of shares authorized for repurchase				10,000,000	5,000,000
Total Number of Shares Repurchased		4,900,000
Increase in shares authorized for repurchase				5,000,000

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Earnings Per Share - Shares Repurchased (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015
Schedule Of Shares Repurchased [Line Items]
Total Number of Shares Repurchased	279	500
Total Cost of Shares Repurchased	$ 6,833	$ 11,969
Minimum [Member]
Schedule Of Shares Repurchased [Line Items]
Range of Prices Paid Per Share	$ 24.14	$ 22.81
Maximum [Member]
Schedule Of Shares Repurchased [Line Items]
Range of Prices Paid Per Share	$ 24.79	$ 24.79

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Commitments and Loss Contingency - Schedule of Future Minimum Rental Payments under Operating Leases (Detail) $ in Thousands	Jun. 30, 2016 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2016 (remaining six months)	$ 3,635
2017	9,256
2018	9,179
2019	9,317
2020	8,986
2021	7,115
2022 and thereafter	27,800
Total minimum payments required	$ 75,288

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Commitments and Loss Contingency - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($) Acquisition	Apr. 01, 2016 USD ($)	Dec. 31, 2015 USD ($)	Jul. 31, 2015 USD ($)	Jul. 02, 2015 USD ($)
Long-term Purchase Commitment [Line Items]
Expected future value of contingent consideration	$ 12,100
Fair value of contingent consideration	9,696		$ 6,280
Qelp [Member]
Long-term Purchase Commitment [Line Items]
Expected future value of contingent consideration	$ 9,100
Contingent consideration expected payment period	3 years
Fair value of contingent consideration				$ 6,000	$ 6,000
Clearlink [Member]
Long-term Purchase Commitment [Line Items]
Expected future value of contingent consideration	$ 3,000
Fair value of contingent consideration		$ 2,800
Number of acquisitions with contingent consideration made by Clearlink prior to the Merger | Acquisition	4
Minimum [Member]
Long-term Purchase Commitment [Line Items]
Term of agreements with third party vendors	1 year
Maximum [Member]
Long-term Purchase Commitment [Line Items]
Term of agreements with third party vendors	5 years

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Commitments and Loss Contingency - Schedule of Future Minimum Purchases Remaining under Agreements (Detail) $ in Thousands	Jun. 30, 2016 USD ($)
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
2016 (remaining six months)	$ 5,513
2017	1,749
2018	652
2019	0
2020	0
2021	0
2022 and thereafter	0
Total minimum payments required	$ 7,914

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Defined Benefit Pension Plan and Postretirement Benefits - Net Periodic Benefit Cost for Pension Plans (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract]
Service cost	$ 120	$ 113	$ 238	$ 228
Interest cost	45	35	89	71
Recognized actuarial (gains)	(10)	(10)	(22)	(21)
Net periodic benefit cost	$ 155	$ 138	$ 305	$ 278

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Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2016
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Percentage of employer's contribution based on participants contribution	50.00%
Maximum [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Percentage of employer's contribution based on participants compensation	2.00%

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Defined Benefit Pension Plan and Postretirement Benefits - Company's Contributions to Employee Retirement Savings Plans (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Compensation and Retirement Disclosure [Abstract]
401(k) plan contributions	$ 334	$ 188	$ 619	$ 471

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Defined Benefit Pension Plan and Postretirement Benefits - Post-Retirement Benefit Obligation and Unrealized Gain (Losses) (Detail) - Split-Dollar Life Insurance Arrangement [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Postretirement benefit obligation	$ 31	$ 37
Unrealized gains (losses) in AOCI	$ 240	$ 267

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Stock-Based Compensation - Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess tax benefit (deficiency) from stock-based compensation			$ 2,060
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation (expense)	$ (3,547)	$ (1,288)	(5,729)	$ (3,284)
Income Taxes [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit	1,348	$ 486	2,177	1,215
Additional Paid-in Capital [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess tax benefit (deficiency) from stock-based compensation	$ 149		$ 2,060	$ 169

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Stock-Based Compensation - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended	36 Months Ended
	Jun. 30, 2016	May 16, 2012	May 18, 2015	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized stock-based compensation costs	$ 0			$ 0
2011 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock available under the 2011 plan	4,000,000
2011 Equity Incentive Plan [Member] | Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based compensation vesting period	One-third on each of the first three anniversaries of the date of grant
Weighted average period	1 year 6 months
Total unrecognized compensation cost	$ 3,500,000
2011 Equity Incentive Plan [Member] | Restricted Shares and Restricted Stock Units (RSU's) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation vesting period	One-third on each of the first three anniversaries of the date of grant
Weighted average period	2 years 1 month 6 days
Total unrecognized compensation cost	$ 21,200,000
2011 Equity Incentive Plan [Member] | Restricted Shares and Restricted Stock Units (RSU's) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of vesting possibilities	0.00%
2011 Equity Incentive Plan [Member] | Restricted Shares and Restricted Stock Units (RSU's) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of vesting possibilities	100.00%
Non-Employee Director Fee Plan [Member] | Common Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan expiration date	May 31, 2014
Weighted average period	7 months 6 days
Total unrecognized compensation cost	$ 600,000
Value of initial granted shares of common stock to new non employee director	$ 60,000
Vesting period of initial granted shares of common stock to new non employee director	Twelve equal quarterly installments, one-twelfth on the date of grant and an additional one-twelfth on each successive third monthly anniversary of the date of grant.
Value of Annual Retainer to Non-Employee Director		$ 95,000	$ 125,000
Annual Retainer payable in cash to Non Employee Director	$ 55,000	$ 50,000	50,000
Amended vesting period of cash Annual retainer to non-employee chairman and committee members	Vested in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant
Vesting period of annual granted shares of common stock to non-employee director	Vests in eight equal quarterly installments, one-eighth on the day following the annual meeting of shareholders, and an additional one-eighth on each successive third monthly anniversary of the date of grant
Increased stock component of annual retainer	$ 25,000		$ 30,000
Vesting period for the annual equity award		2 years	1 year
Amended vesting period of annual granted shares of common stock to non-employee director	Four equal quarterly installments, one-fourth on the date of grant and an additional one-fourth on each successive third monthly anniversary of the date of grant
Additional annual cash award to be given to any non employee chairman of board	$ 100,000
Additional annual cash award to be given to Chairperson of the audit committee	20,000
Additional annual cash award to be given to audit committee members	10,000
Annual cash awards for the Chairperson of the Compensation Committee	15,000
Annual cash awards for the Chairperson of the Finance Committee	12,500
Annual cash awards for the Chairperson of the Nominating and Corporate Governance Committee	12,500
Annual cash awards for the members of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee	7,500
Annual Retainer payable in stock to Non Employee Director	100,000
Increased cash component of annual retainer	$ 5,000
Deferred Compensation Plan [Member] | Common Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	2 years 8 months 12 days
Total unrecognized compensation cost	$ 100,000
Percentage of contribution in respect of amounts deferred by certain senior management participants	50.00%
Vesting period of matching contributions and associated earnings	7 years
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Treasury Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock match associated with the deferred compensation plan carrying value	$ 1,800,000			1,600,000
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | President, Chief Executive Officer and Executive Vice Presidents [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amounts deferred by certain senior management personnel	12,000
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Senior Vice President, Global Vice Presidents and Vice Presidents [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amounts deferred by certain senior management personnel	7,500
Deferred Compensation Plan [Member] | Accrued employee compensation and benefits
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accrued employee compensation and benefits	$ 8,500,000			$ 7,900,000
2001 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan expiration date	Mar. 14, 2011

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Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member]	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	25.30%	34.10%
Weighted-average volatility	25.30%	34.10%
Expected dividend rate	0.00%	0.00%
Expected term (in years)	5 years	5 years
Risk-free rate	1.50%	1.60%

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Stock-Based Compensation - Summary of Stock Appreciation Rights Activity (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Shares, beginning balance	481
Granted, Shares	323	217
Exercised, Shares	(151)
Forfeited or expired, Shares	(20)
Outstanding Shares, ending balance	633
Vested or expected to vest, Shares	633
Exercisable, Shares	118
Outstanding, Weighted Average Exercise Price, beginning balance	$ 0
Granted, Weighted Average Exercise Price	0
Exercised, Weighted Average Exercise Price	0
Forfeited or expired, Weighted Average Exercise Price	0
Outstanding, Weighted Average Exercise Price, ending balance	0
Vested or expected to vest, Weighted Average Exercise Price	0
Exercisable, Weighted Average Exercise Price	$ 0
Outstanding, Weighted Average Remaining Contractual Term	8 years 8 months 12 days
Vested or expected to vest, Weighted Average Remaining Contractual Term	8 years 8 months 12 days
Exercisable, Weighted Average Remaining Contractual Term	6 years 3 months 18 days
Outstanding, Aggregate Intrinsic Value	$ 1,974
Vested or expected to vest, Aggregate Intrinsic Value	1,974
Exercisable, Aggregate Intrinsic Value	$ 797

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Stock-Based Compensation - Weighted Average Grant Date of SARs Granted and Total Intrinsic Value of SARs Exercised (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	323	217
Weighted average grant-date fair value per SAR	$ 7.68	$ 8.17
Intrinsic value of SARs exercised	$ 1,691	$ 734
Fair value of vested	$ 1,520	$ 1,302

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Stock-Based Compensation - Summary of Nonvested Stock Appreciation Rights (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member] - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Shares, beginning balance	424
Granted, Shares	323	217
Vested, Shares	(213)
Forfeited, Shares	(19)
Nonvested Shares, ending balance	515
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance	$ 7.50
Granted, Weighted Average Grant-Date Fair Value	7.68	$ 8.17
Vested, Weighted Average Grant-Date Fair Value	7.14
Forfeited or expired, Weighted Average Grant-Date Fair Value	7.68
Nonvested, Weighted Average Grant-Date Fair Value, ending balance	$ 7.76

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Stock-Based Compensation - Summary of Nonvested Restricted Shares and Restricted Stock Units (Detail) - Restricted Shares and Restricted Stock Units (RSU's) [Member] - 2011 Equity Incentive Plan [Member] - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Shares, beginning balance	1,246
Granted, Shares	451	441
Vested, Shares	(421)
Forfeited, Shares	(136)
Nonvested Shares, ending balance	1,140
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance	$ 20.03
Granted, Weighted Average Grant-Date Fair Value	30.32	$ 25.06
Vested, Weighted Average Grant-Date Fair Value	16.10
Forfeited or expired, Weighted Average Grant-Date Fair Value	20.60
Nonvested, Weighted Average Grant-Date Fair Value, ending balance	$ 25.49

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Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value Granted and Total Fair Value of Restricted Shares and Restricted Stock Units Vested (Detail) - Restricted Shares and Restricted Stock Units (RSU's) [Member] - 2011 Equity Incentive Plan [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	451	441
Weighted average grant-date fair value	$ 30.32	$ 25.06
Fair value of vested	$ 6,785	$ 2,019

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Stock-Based Compensation - Summary of Nonvested Common Stock Units and Share Awards (Detail) - Common Stock Awards [Member] - Non-Employee Director Fee Plan [Member] - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Shares, beginning balance	11
Granted, Shares	32	32
Vested, Shares	(16)
Forfeited, Shares	(1)
Nonvested Shares, ending balance	26
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance	$ 23.74
Granted, Weighted Average Grant-Date Fair Value	29.04	$ 24.70
Vested, Weighted Average Grant-Date Fair Value	26.50
Forfeited or expired, Weighted Average Grant-Date Fair Value	24.70
Nonvested, Weighted Average Grant-Date Fair Value, ending balance	$ 28.56

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Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Total Fair Value of Common Stock Units and Share Awards Vested (Detail) - Common Stock Awards [Member] - Non-Employee Director Fee Plan [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	32	32
Weighted average grant-date fair value	$ 29.04	$ 24.70
Fair value of vested	$ 410	$ 370

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Stock-Based Compensation - Summary of Nonvested Common Stock (Detail) - Common Stock Awards [Member] - Deferred Compensation Plan [Member] - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Shares, beginning balance	3
Granted, Shares	6	6
Vested, Shares	(7)
Forfeited, Shares	0
Nonvested Shares, ending balance	2
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance	$ 19.53
Granted, Weighted Average Grant-Date Fair Value	29.76	$ 24.69
Vested, Weighted Average Grant-Date Fair Value	28.14
Forfeited or expired, Weighted Average Grant-Date Fair Value	23.49
Nonvested, Weighted Average Grant-Date Fair Value, ending balance	$ 22.27

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Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Awarded and Cash Used to Settle Company's Obligation under Deferred Compensation (Detail) - Common Stock Awards [Member] - Deferred Compensation Plan [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	6	6
Weighted average grant-date fair value	$ 29.76	$ 24.69
Fair value of vested	$ 183	$ 169
Cash used to settle the obligation	$ 359	$ 65

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Segments and Geographic Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2016 Segment Region
Segment Reporting [Abstract]
Number of operating regions | Region	2
Number of reportable segments | Segment	2

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Segments and Geographic Information - Company's Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Revenues	$ 364,402	$ 307,453	$ 685,148	$ 631,138
Percentage of revenues	100.00%	100.00%	100.00%	100.00%
Depreciation, net	$ 11,960	$ 11,007	$ 22,744	$ 22,066
Amortization of intangibles	5,263	3,435	8,890	6,866
Income (loss) from operations	13,402	18,217	33,672	40,758
Other (expense), net	(373)	(626)	(475)	(1,728)
Income taxes	(3,891)	(4,679)	(10,105)	(10,479)
Net income	9,138	12,912	23,092	28,551
Total assets	1,218,991	928,569	1,218,991	928,569	$ 947,772
Americas [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	$ 305,211	$ 249,682	$ 567,287	$ 513,855
Percentage of revenues	83.80%	81.20%	82.80%	81.40%
Depreciation, net	$ 10,316	$ 9,605	$ 19,492	$ 19,185
Amortization of intangibles	4,995	3,435	8,363	6,866
Income (loss) from operations	30,725	28,669	63,712	61,210
Total assets	1,759,137	1,067,801	1,759,137	1,067,801
EMEA [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	$ 59,152	$ 57,752	$ 117,777	$ 117,247
Percentage of revenues	16.20%	18.80%	17.20%	18.60%
Depreciation, net	$ 1,162	$ 1,084	$ 2,326	$ 2,227
Amortization of intangibles	268		527
Income (loss) from operations	2,896	2,969	6,306	6,757
Total assets	1,473,687	1,394,836	1,473,687	1,394,836
Other Segments [Member]
Segment Reporting Information [Line Items]
Revenues	$ 39	$ 19	$ 84	$ 36
Percentage of revenues	0.00%	0.00%	0.00%	0.00%
Depreciation, net	$ 482	$ 318	$ 926	$ 654
Income (loss) from operations	(20,219)	(13,421)	(36,346)	(27,209)
Other (expense), net	(373)	(626)	(475)	(1,728)
Income taxes	(3,891)	(4,679)	(10,105)	(10,479)
Total assets	$ (2,013,833)	$ (1,534,068)	$ (2,013,833)	$ (1,534,068)

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Other Income (Expense) - Schedule of Other Income (Expense) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Other Income (Expense) [Abstract]
Foreign currency transaction gains (losses)	$ 1,410	$ (90)	$ 2,756	$ (1,025)
Gains (losses) on foreign currency derivative instruments not designated as hedges	(585)	67	(1,324)	(97)
Other miscellaneous income (expense)	242	(144)	188	126
Other income (expense)	$ 1,067	$ (167)	$ 1,620	$ (996)

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Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2008	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transactions [Abstract]
Duration of lease	20 years
Payment to landlord under the lease terms		$ 0.1	$ 0.1	$ 0.2	$ 0.2