10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2017

☐ 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  ☒                             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  ☒                             No  ☐

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

Large accelerated filer  ☒    Accelerated filer  ☐    Non-accelerated filer  ☐    (Do not check if a smaller reporting company)

Smaller reporting company  ☐    Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

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

Yes  ☐                             No  ☒

As of July 20, 2017, there were 43,009,233 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, 2017 and December  31, 2016 (Unaudited)	3
Condensed Consolidated Statements of Operations – Three and Six Months Ended June  30, 2017 and 2016 (Unaudited)	4
Condensed Consolidated Statements of Comprehensive Income (Loss) – Three and Six Months Ended June 30, 2017 and 2016 (Unaudited)	5
Condensed Consolidated Statement of Changes in Shareholders’ Equity – Six Months Ended June 30, 2017 (Unaudited)	6
Condensed Consolidated Statements of Cash Flows – Six Months Ended June  30, 2017 and 2016 (Unaudited)	7
Notes to Condensed Consolidated Financial Statements (Unaudited)	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3. Quantitative and Qualitative Disclosures About Market Risk	53
Item 4. Controls and Procedures	55
Part II. OTHER INFORMATION	56
Item 1. Legal Proceedings	56
Item 1A. Risk Factors	56
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	56
Item 3. Defaults Upon Senior Securities	56
Item 4. Mine Safety Disclosures	56
Item 5. Other Information	56
Item 6. Exhibits	57
SIGNATURE	58

2

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, 2017			December 31, 2016
Assets
Current assets:
Cash and cash equivalents	$	301,451		$	266,675
Receivables, net		332,501			318,558
Prepaid expenses		22,060			21,973
Other current assets		15,939			16,030
Total current assets		671,951			623,236
Property and equipment, net		160,104			156,214
Goodwill, net		266,934			265,404
Intangibles, net		144,751			153,055
Deferred charges and other assets		16,892			38,494
	$	1,260,632		$	1,236,403
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	25,414		$	29,163
Accrued employee compensation and benefits		92,075			92,552
Income taxes payable		2,094			4,487
Deferred revenue		40,485			38,736
Other accrued expenses and current liabilities		35,244			37,919
Total current liabilities		195,312			202,857
Deferred grants		3,520			3,761
Long-term debt		267,000			267,000
Long-term income tax liabilities		3,399			19,326
Other long-term liabilities		21,221			18,937
Total liabilities		490,452			511,881
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; 43,009 and 42,895 shares issued, respectively		430			429
Additional paid-in capital		279,523			281,357
Retained earnings		542,184			518,611
Accumulated other comprehensive income (loss)		(49,877	)		(67,027	)
Treasury stock at cost: 120 and 362 shares, respectively		(2,080	)		(8,848	)
Total shareholders’ equity		770,180			724,522
	$	1,260,632		$	1,236,403

See accompanying Notes to Condensed Consolidated Financial Statements.

3

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)	2017			2016			2017			2016
Revenues	$	375,438		$	364,402		$	759,452		$	685,148
Operating expenses:
Direct salaries and related costs		248,643			239,442			495,808			444,997
General and administrative		92,246			94,335			184,300			174,845
Depreciation, net		13,820			11,960			27,168			22,744
Amortization of intangibles		5,250			5,263			10,481			8,890
Impairment of long-lived assets		4,189			-			4,391			-
Total operating expenses		364,148			351,000			722,148			651,476
Income from operations		11,290			13,402			37,304			33,672
Other income (expense):
Interest income		144			141			299			294
Interest (expense)		(1,865	)		(1,581	)		(3,564	)		(2,389	)
Other income (expense), net		831			1,067			1,683			1,620
Total other income (expense), net		(890	)		(373	)		(1,582	)		(475	)
Income before income taxes		10,400			13,029			35,722			33,197
Income taxes		1,555			3,891			8,165			10,105
Net income	$	8,845		$	9,138		$	27,557		$	23,092
Net income per common share:
Basic	$	0.21		$	0.22		$	0.66		$	0.55
Diluted	$	0.21		$	0.22		$	0.66		$	0.55
Weighted average common shares outstanding:
Basic		41,854			41,970			41,756			41,838
Diluted		41,934			42,101			41,919			42,101

See accompanying Notes to Condensed Consolidated Financial Statements.

4

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)	2017			2016			2017			2016
Net income	$	8,845		$	9,138		$	27,557		$	23,092
Other comprehensive income (loss), net of taxes:
Foreign currency translation gain (loss), net of taxes		16,484			(9,599	)		20,382			4,300
Unrealized gain (loss) on net investment hedges, net of taxes		(2,936	)		1,497			(3,304	)		(433	)
Unrealized actuarial gain (loss) related to pension liability, net of taxes		(16	)		(35	)		(39	)		(26	)
Unrealized gain (loss) on cash flow hedging instruments, net of taxes		(396	)		(1,996	)		136			434
Unrealized gain (loss) on postretirement obligation, net of taxes		(12	)		(14	)		(25	)		(27	)
Other comprehensive income (loss), net of taxes		13,124			(10,147	)		17,150			4,248
Comprehensive income (loss)	$	21,969		$	(1,009	)	$	44,707		$	27,340

See accompanying Notes to Condensed Consolidated Financial Statements.

5

Sykes Enterprises, Incorporated and Subsidiaries

Condensed Consolidated Statement of Changes in Shareholders’ Equity

Six Months Ended June 30, 2017

(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, 2016		42,895		$	429		$	281,357		$	518,611		$	(67,027	)	$	(8,848	)	$	724,522
Cumulative effect of accounting change		-			-			232			(153	)		-			-			79
Stock-based compensation expense		-			-			4,732			-			-			-			4,732
Issuance of common stock under equity award plans, net of shares withheld for employee taxes		364			4			(3,604	)		-			-			(260	)		(3,860	)
Retirement of treasury stock		(250	)		(3	)		(3,194	)		(3,831	)		-			7,028			-
Comprehensive income (loss)		-			-			-			27,557			17,150			-			44,707
Balance at June 30, 2017		43,009		$	430		$	279,523		$	542,184		$	(49,877	)	$	(2,080	)	$	770,180

See accompanying Notes to Condensed Consolidated Financial Statements.

6

Sykes Enterprises, Incorporated and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
(in thousands)	2017			2016
Cash flows from operating activities:
Net income	$	27,557		$	23,092
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		27,423			23,059
Amortization of intangibles		10,481			8,890
Amortization of deferred grants		(374	)		(444	)
Impairment losses		4,391			-
Unrealized foreign currency transaction (gains) losses, net		(611	)		(2,316	)
Stock-based compensation expense		4,732			5,729
Deferred income tax provision (benefit)		9,785			(2,219	)
Unrealized (gains) losses on financial instruments, net		42			611
Amortization of deferred loan fees		134			134
Imputed interest expense and fair value adjustments to contingent consideration		(633	)		509
Other		144			(166	)
Changes in assets and liabilities, net of acquisitions:
Receivables		9,059			(1,581	)
Prepaid expenses		78			(2,952	)
Other current assets		(1,855	)		(2,316	)
Deferred charges and other assets		(1,008	)		(1,509	)
Accounts payable		2,420			(3,145	)
Income taxes receivable / payable		(14,086	)		273
Accrued employee compensation and benefits		(1,779	)		12,896
Other accrued expenses and current liabilities		(2,916	)		3,009
Deferred revenue		2,398			3,623
Other long-term liabilities		(3,813	)		1,501
Net cash provided by operating activities		71,569			66,678
Cash flows from investing activities:
Capital expenditures		(35,859	)		(34,409	)
Cash paid for business acquisition, net of cash acquired		(7,500	)		(205,324	)
Proceeds from sale of property and equipment		25			37
Investment in restricted cash		(33	)		(228	)
Release of restricted cash		21			77
Net investment hedge settlement		-			10,339
Purchase of intangible assets		(275	)		-
Net cash (used for) investing activities		(43,621	)		(229,508	)

7

Sykes Enterprises, Incorporated and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Continued)

	Six Months Ended June 30,
(in thousands)	2017			2016
Cash flows from financing activities:
Payments of long-term debt		-			(14,000	)
Proceeds from issuance of long-term debt		-			216,000
Proceeds from grants		107			89
Shares repurchased for tax withholding on equity awards		(3,860	)		(4,915	)
Payments of contingent consideration related to acquisitions		(4,528	)		-
Net cash provided by (used for) financing activities		(8,281	)		197,174
Effects of exchange rates on cash and cash equivalents		15,109			3,512
Net increase in cash and cash equivalents		34,776			37,856
Cash and cash equivalents – beginning		266,675			235,358
Cash and cash equivalents – ending	$	301,451		$	273,214
Supplemental disclosures of cash flow information:
Cash paid during period for interest	$	3,066		$	1,497
Cash paid during period for income taxes	$	17,032		$	11,229
Non-cash transactions:
Property and equipment additions in accounts payable	$	3,742		$	6,990
Unrealized gain (loss) on postretirement obligation in accumulated other comprehensive income (loss)	$	(25	)	$	(27	)
Shares repurchased for tax withholding on equity awards included in current liabilities	$	119		$	51

See accompanying Notes to Condensed Consolidated Financial Statements.

8

Sykes Enterprises, Incorporated and Subsidiaries

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2017 and 2016

(Unaudited)

Note 1. Overview and Basis of Presentation

Business — Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) is a global business processing outsourcing leader in providing comprehensive inbound customer engagement solutions and services to Global 2000 companies, primarily in the communications, financial services, healthcare, technology, transportation and leisure, retail and other industries. SYKES’ differentiated end-to-end solutions and service platform effectively engages consumers at every touch point in their customer lifecycle, starting from digital marketing and acquisition to customer support, up-sell/cross-sell and retention. The Company serves its 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 regions primarily provide customer engagement services (with an emphasis on inbound technical support, digital marketing and demand generation, and customer service), which includes customer assistance, healthcare and roadside assistance, technical support, and product and service sales to its clients’ customers. These services are delivered through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. The Company also provides various enterprise support services in the United States that include services for its clients’ 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. SYKES has developed an extensive global reach with customer engagement centers across six continents, including North America, South America, Europe, Asia, Australia and Africa. The Company delivers cost-effective solutions that enhance the customer service experience, promote stronger brand loyalty, and bring out high levels of performance and profitability.

Acquisitions

On May 31, 2017, the Company completed the acquisition of certain assets of a Global 2000 telecommunications services provider, pursuant to a definitive Asset Purchase Agreement (the “Purchase Agreement”) entered into on April 24, 2017 (the “Telecommunications Asset acquisition”). The Company has reflected the Telecommunications Asset acquisition’s results in the Condensed Consolidated Financial Statements since May 31, 2017. See Note 2, Acquisitions, for additional information on the acquisition.

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 Clearlink’s results in the Condensed Consolidated Financial Statements since April 1, 2016. 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, 2017 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2017. 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, 2016, as filed with the Securities and Exchange Commission (“SEC”) on March 1, 2017.

Principles of Consolidation — The condensed consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. All 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.

9

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, 2017 and December 31, 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 Sheets. Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Income Statements for the three months ended June 30, 2017 and 2016 were $8.6 million and $8.0 million, respectively, and $18.4 million and $8.0 million for the six months ended June 30, 2017 and 2016, respectively.

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. In 2016, the FASB issued additional ASUs that are part of the overall new revenue guidance including: ASU 2016-08, Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing, 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”) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients.

The Company is continuing to evaluate the impact of ASU 2014-09 and the related ASUs on its financial condition, results of operations and cash flows. The Company anticipates that it will apply the modified retrospective adoption alternative for these amendments, which will result in a cumulative effect adjustment to retained earnings as of January 1, 2018. The adoption of these amendments will require expanded qualitative and quantitative disclosures about the Company’s contracts with its customers. The Company has established an implementation team tasked with evaluating provisions within its contracts as well as reviewing accounting policies and internal controls. Based on the preliminary results of its evaluation, the Company does not expect the adoption of these ASUs on January 1, 2018 to have a material impact on the timing of recognition of revenue; however, the Company is still assessing the requirement to estimate variable consideration, such as performance-related bonus and penalty provisions. The Company expects to complete its assessment by the end of the third quarter of 2017.

10

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 Accounting Standards Codification (“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 for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and there are certain optional practical expedients that an entity may elect to apply. The Company expects the adoption of ASU 2016-02 to result in a material increase in the assets and liabilities on the consolidated balance sheets due to the amount of the Company’s lease commitments. However, the amendments will likely have an insignificant impact on our consolidated statements of income. The Company is continuing to evaluate the magnitude of the impact and related disclosures, as well as the timing and method of adoption, with respect to the optional practical expedients.

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.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). These amendments clarify the presentation of cash receipts and payments in eight specific situations. These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments will be applied using a retrospective transition method to each period presented. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to materially impact its financial condition, results of operations and cash flows.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”). These amendments require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. These amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. These amendments will be applied using a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued. The Company does not expect the adoption of ASU 2016-16 to materially impact its financial condition, results of operations and cash flows.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cash (A Consensus of the FASB Emerging Issues Task Force (“ASU 2016-18”). These amendments clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, requiring entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments will be applied using a retrospective transition method to each period presented. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-18 to materially impact its financial condition, results of operations and cash flows.

11

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business (“ASU 2017-01”). These amendments clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. These amendments will be applied prospectively. Early adoption is permitted in certain circumstances. The Company does not expect the adoption of ASU 2017-01 to materially impact its financial condition, results of operations and cash flows.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). These amendments simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. These amendments are effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. These amendments will be applied on a prospective basis, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to materially impact its financial condition, results of operations and cash flows.

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). These amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component outside of a subtotal of income from operations. If a separate line item is not used, the line items used in the income statement to present other components of net benefit cost must be disclosed. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period for which financial statements, interim or annual, have not been issued or made available for issuance. These amendments will be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The amendments allow a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The Company does not expect the adoption of ASU 2017-07 to materially impact its financial condition, results of operations and cash flows.

New Accounting Standards Recently Adopted

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) – Scope of Modification Accounting (“ASU 2017-09”). These amendments provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. These amendments should be applied prospectively to changes in terms and conditions of awards occurring on or after the adoption date. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The early adoption of ASU 2017-09 on June 30, 2017 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

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. The adoption of ASU 2016-05 on January 1, 2017 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

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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. The adoption of ASU 2016-09 on January 1, 2017 resulted in stock-based compensation excess tax benefits or deficiencies reflected in the consolidated statements of operations on a prospective basis as a component of the provision for income taxes. Prior to the adoption, these benefits or deficiencies were recognized in equity. Additionally, the Company’s consolidated statements of cash flows now include excess tax benefits as an operating activity, with prior periods adjusted accordingly. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented on the Company’s consolidated cash flows statements since such cash flows have historically been presented as a financing activity. Finally, the Company has elected to account for forfeitures as they occur, rather than estimating expected forfeitures.

As a result of the adoption of ASU 2016-09, the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2016 was adjusted as follows: a $2.1 million increase to net cash provided by operating activities and a $2.1 million decrease to net cash provided by financing activities. Additionally, the Condensed Consolidated Statement of Changes in Shareholders’ Equity for the six months ended June 30, 2017 reflects a cumulative effect of accounting change of $0.2 million to “Additional paid-in capital” and $(0.2) million to “Retained earnings” related to the change in accounting for forfeitures.

Note 2. Acquisitions

Telecommunications Asset Acquisition

On April 24, 2017, the Company entered into a Purchase Agreement to acquire certain assets from a Global 2000 telecommunications services provider. The aggregate purchase price of $7.5 million was paid on May 31, 2017, using cash on hand, resulting in $6.0 million of property and equipment and $1.5 million of customer relationship intangibles. The Purchase Agreement contains customary representations and warranties, indemnification obligations and covenants. The Telecommunications Asset acquisition was completed to strengthen and create new partnerships for the Company and expand its geographic footprint in North America. The results of the Telecommunications Assets’ operations have been included in the Company’s consolidated financial statements since its acquisition on May 31, 2017.

The Company accounted for the Telecommunications Asset acquisition in accordance with ASC 805, Business Combinations, whereby the fair value of the purchase price was allocated to the tangible and identifiable intangible assets acquired based on their estimated fair values as of the closing date. The Company completed its analysis of the purchase price allocation during the second quarter of 2017.

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 platform 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.

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The Clearlink purchase price totaled $207.9 million, consisting of the following (in thousands):

	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 escrow was released pursuant to the terms of the escrow agreement, but the Company has subsequently asserted a claim of approximately $0.4 million against the Clearlink members, which claim remains under negotiation between the parties.

The following table summarizes the final purchase price allocation of the fair values of the assets acquired and liabilities assumed, all included in the Americas segment (in thousands):

	Amount
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		70,563
Intangibles		121,400
Deferred charges and other assets		229
Accounts payable		(3,564	)
Accrued employee compensation and benefits		(1,610	)
Income taxes payable		(340	)
Deferred revenue		(4,620	)
Other accrued expenses and current liabilities		(6,324	)
Total current liabilities		(16,458	)
Other long-term liabilities		(1,633	)
	$	207,908
(1) The fair value equals the gross contractual value of the receivables.

The Company accounted for the Clearlink acquisition in accordance with ASC 805, Business Combinations (“ASC 805”), 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. The Company completed its analysis of the purchase price allocation during the fourth quarter of 2016 and the resulting adjustments were recorded in accordance with ASU 2015-16, Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments.

Fair values are 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 April 1, 2016, the Clearlink acquisition date (in thousands):

			Weighted Average
			Amortization Period
	Amount Assigned		(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. 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 (in thousands):

	Three Months Ended June 30, 2016		Six Months Ended   June 30, 2016
Revenues	$	364,403	$	718,977
Net income	$	10,975	$	25,895
Net income per common share:
Basic	$	0.26	$	0.62
Diluted	$	0.26	$	0.62

These amounts were 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, together with the consequential tax effects. In addition, these amounts exclude costs incurred which were directly attributable to the acquisition, and which did 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.

Merger and integration costs associated with Clearlink included in “General and administrative” costs in the accompanying Condensed Consolidated Statement of Operations were as follows (none in 2017) (in thousands):

	Three Months Ended		Six Months Ended
	June 30, 2016		June 30, 2016
Americas	$	29	$	29
Other		2,934		4,376
	$	2,963	$	4,405

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Note 3. Costs Associated with Exit or Disposal Activities

During 2011 and 2010, the Company announced several initiatives to streamline excess capacity through targeted seat reductions (the “Exit Plans”) in an on-going effort to manage and optimize capacity utilization. These Exit Plans included, but were not limited to, closing customer engagement centers in the Philippines, the United Kingdom, Ireland and South Africa and consolidating leased space in various locations in the U.S. and the Netherlands. These Exit Plans impacted approximately 800 employees.

The Company paid $16.2 million in cash through December 31, 2016 under these Exit Plans for lease obligations and facility exit costs, severance and related costs and legal-related costs. As of December 31, 2016, there were no remaining outstanding liabilities related to the Exit Plans.

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 (none in 2017) (in thousands):

	Three Months Ended			Six Months Ended
	June 30, 2016			June 30, 2016
Beginning accrual	$	527		$	733
Cash payments (1)		(208	)		(414	)
Ending accrual	$	319		$	319
(1) Related to lease obligations and facility exit costs.

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 exchange 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.

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, the 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.

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 acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”) on July 2, 2015 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.

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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 as of June 30, 2017 (in thousands):

				Fair Value Measurements at June 30, 2017 Using:
				Quoted Prices		Significant
				in Active		Other		Significant
				Markets For		Observable		Unobservable
		Balance at		Identical Assets		Inputs		Inputs
		June 30, 2017		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	356	$	-	$	356	$	-
Embedded derivatives	(1)		84		-		-		84
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		7,446		7,446		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		3,283		3,283		-		-
		$	11,169	$	10,729	$	356	$	84
Liabilities:
Long-term debt	(3)	$	267,000	$	-	$	267,000	$	-
Foreign currency forward and option contracts	(1)		4,468		-		4,468		-
Embedded derivatives	(1)		255		-		-		255
Contingent consideration	(4)		1,127		-		-		1,127
		$	272,850	$	-	$	271,468	$	1,382
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 as of December 31, 2016 (in thousands):
				Fair Value Measurements at December 31, 2016 Using:
				Quoted Prices		Significant
				in Active		Other		Significant
				Markets For		Observable		Unobservable
		Balance at		Identical Assets		Inputs		Inputs
		December 31, 2016		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	3,921	$	-	$	3,921	$	-
Embedded derivatives	(1)		12		-		-		12
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		7,470		7,470		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		1,944		1,944		-		-
		$	13,347	$	9,414	$	3,921	$	12
Liabilities:
Long-term debt	(3)	$	267,000	$	-	$	267,000	$	-
Foreign currency forward and option contracts	(1)		1,912		-		1,912		-
Embedded derivatives	(1)		567		-		-		567
Contingent consideration	(4)		6,100		-		-		6,100
		$	275,579	$	-	$	268,912	$	6,667

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

⁽⁴⁾ Included in “Other accrued expenses and current liabilities” 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):

	Fair Value
Balance at January 1, 2016	$	-
Gain (loss) recognized in “Other income (expense)” (1)		(714	)
Effect of foreign currency		159
Balance at December 31, 2016	$	(555	)
Gain (loss) recognized in “Other income (expense)” (1)		315
Effect of foreign currency		69
Balance at June 30, 2017	$	(171	)
Unrealized gain (loss) for the three months ended June 30, 2016	$	(12	)
Unrealized gain (loss) for the six months ended June 30, 2016	$	43
Unrealized gain (loss) for the three months ended June 30, 2017	$	200
Unrealized gain (loss) for the six months ended June 30, 2017	$	384
(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, 2016	$	6,280
Acquisition (1)		2,779
Payments		(1,396	)
Imputed interest		754
Fair value (gain) loss adjustments		(2,250	)
Effect of foreign currency		(67	)
Balance at December 31, 2016		6,100
Payments		(4,528	)
Imputed interest		68
Fair value (gain) loss adjustments		(701	)
Effect of foreign currency		188
Balance at June 30, 2017	$	1,127
(1) Liability acquired as part of the Clearlink acquisition on April 1, 2016. See Note 2, Acquisitions, for further information.

The Company recorded a fair value gain of $2.6 million to the Qelp contingent consideration in “General and administrative” during the year ended December 31, 2016 due to the execution of an addendum to the Qelp purchase agreement, subject to which the Company agreed to pay the sellers EUR 4.0 million by June 30, 2017. The Company paid $4.4 million in May 2017 to settle the outstanding contingent consideration obligation.

The Company recorded a fair value gain of $0.3 million in “General and administrative” during the three and six months ended June 30, 2017 to the Clearlink contingent consideration due to changes in the probability of achievement of certain revenue targets. The Company recorded a fair value gain of $0.4 million in “General and administrative” during the six months ended June 30, 2017 to the Clearlink contingent consideration upon settlement of one of the contingent consideration liabilities for $0.1 million. The Company recorded a fair value loss of $0.3 million in “General and administrative” during the year ended December 31, 2016 to the Clearlink contingent consideration due to changes in the probability of achievement of certain revenue targets.

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The Company accretes interest expense each period using the effective interest method until the contingent consideration reaches the estimated remaining future value of $1.1 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, 2017 and December 31, 2016.

The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) subject to the requirements of ASC 820 (in thousands) (none in 2016):

	Total Impairment (Loss)
	Three Months Ended			Six Months Ended
	June 30, 2017			June 30, 2017
Americas:
Property and equipment, net	$	(4,189	)	$	(4,391	)

In connection with the closure of an under-utilized customer contact management center in the U.S., the Company recorded an impairment charge of $4.2 million during the three and six months ended June 30, 2017 related to leasehold improvements which were not recoverable and equipment, furniture and fixtures that could not be redeployed to other locations.

During the six months ended June 30, 2017, the Company recorded an impairment charge of $0.2 million related to the write-down of a vacant and unused parcel of land in the U.S. to its estimated fair value.

Note 5. Goodwill and Intangible Assets

Intangible Assets

The following table presents the Company’s purchased intangible assets as of June 30, 2017 (in thousands):

								Weighted Average
			Accumulated					Amortization
	Gross Intangibles		Amortization			Net Intangibles		Period (years)
Intangible assets subject to amortization:
Customer relationships	$	169,278	$	(85,252	)	$	84,026		10
Trade names and trademarks		14,103		(7,938	)		6,165		7
Non-compete agreements		2,996		(1,946	)		1,050		2
Content library		515		(515	)		-		2
Proprietary software		1,550		(1,025	)		525		3
Favorable lease agreement		449		(449	)		-		2
Intangible assets not subject to amortization:
Domain names		52,985		-			52,985		N/A
	$	241,876	$	(97,125	)	$	144,751		6

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The following table presents the Company’s purchased intangible assets as of December 31, 2016 (in thousands):

	Gross Intangibles		Accumulated       Amortization			Net Intangibles		Weighted Average Amortization Period (years)
Intangible assets subject to amortization:
Customer relationships	$	166,634	$	(75,364	)	$	91,270		10
Trade names and trademarks		14,095		(7,083	)		7,012		7
Non-compete agreements		2,993		(1,643	)		1,350		2
Content library		475		(357	)		118		2
Proprietary software		1,550		(955	)		595		3
Favorable lease agreement		449		(449	)		-		2
Intangible assets not subject to amortization:
Domain names		52,710		-			52,710		N/A
	$	238,906	$	(85,851	)	$	153,055		6

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, 2017, is as follows (in thousands):

Years Ending December 31,	Amount
2017 (remaining six months)	$	10,567
2018		14,868
2019		13,815
2020		11,155
2021		6,664
2022		5,709
2023 and thereafter		28,988

Goodwill

Changes in goodwill for the six months ended June 30, 2017 consist of the following (in thousands):

					Effect of Foreign
	January 1, 2017		Acquisition		Currency		June 30, 2017
Americas	$	255,842	$	-	$	811	$	256,653
EMEA		9,562		-		719		10,281
	$	265,404	$	-	$	1,530	$	266,934
Changes in goodwill for the year ended December 31, 2016 consist of the following (in thousands):
					Effect of Foreign
	January 1, 2016		Acquisition (1)		Currency		December 31, 2016
Americas	$	186,049	$	70,563	$	(770)	$	255,842
EMEA		9,684		-		(122)		9,562
	$	195,733	$	70,563	$	(892)	$	265,404

⁽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, 2016. 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

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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, 2016, the Company concluded that goodwill was not impaired for all six of its reporting units with goodwill, based on generally accepted valuation techniques and the significant assumptions outlined above. While the fair values of four of the six reporting units were substantially in excess of their carrying value, the Qelp reporting unit’s fair value exceeded its carrying value (although not substantially) and the newly acquired Clearlink reporting unit’s fair value approximated its carrying value due to the proximity to the acquisition date of April 1, 2016.

The Qelp and Clearlink reporting units are at risk of future impairment if projected operating results are not met or other inputs into the fair value measurement change. However, as of June 30, 2017, there were no indicators of impairment related to Qelp’s $10.3 million of goodwill or Clearlink’s $70.6 million of goodwill.

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, 2017		December 31, 2016
Deferred gains (losses) in AOCI	$	(2,126)	$	(2,295)
Tax on deferred gains (losses) in AOCI		37		69
Deferred gains (losses) in AOCI, net of taxes	$	(2,089)	$	(2,226)
Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months	$	(2,126)

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.

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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, 2017				As of December 31, 2016
	Notional				Notional
	Amount in		Settle Through		Amount in		Settle Through
Contract Type	USD		Date		USD		Date
Cash flow hedges:
Options:
Philippine Pesos	$	32,000		May 2018	$	51,000		December 2017
Forwards:
Philippine Pesos		3,000		June 2018		-		-
Costa Rican Colones		58,750		June 2018		45,500		December 2017
Hungarian Forints		1,370		December 2017		-		-
Romanian Leis		3,850		December 2017		-		-
Net investment hedges:
Forwards:
Euros		76,933		September 2017		76,933		September 2017
Non-designated hedges:
Forwards		38,179		September 2017		55,614		March 2017
Embedded derivatives		13,808		April 2030		13,234		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 $0.4 million and $3.9 million as of June 30, 2017 and December 31, 2016, 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 $3.6 million as of December 31, 2016 (none at June 30, 2017) and liability positions of $4.1 million and $1.6 million as of June 30, 2017 and December 31, 2016, 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, 2017		December 31, 2016
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (1)	$	48	$	-
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (1)		242		3,230
		290		3,230
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (1)		66		691
Embedded derivatives (1)		17		8
Embedded derivatives (2)		67		4
Total derivative assets	$	440	$	3,933
	Derivative Liabilities
	June 30, 2017		December 31, 2016
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (3)	$	1,861	$	1,806
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (3)		2,384		-
		4,245		1,806
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (3)		223		106
Embedded derivatives (3)		166		174
Embedded derivatives (4)		89		393
Total derivative liabilities	$	4,723	$	2,479

⁽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, 2017 and 2016 (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,
	2017		2016			2017			2016		2017		2016
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	(1,232)	$	(2,072	)	$	(820	)	$	4	$	-	$	-
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		(4,774)		2,414			-			-		-		-
	$	(6,006)	$	342		$	(820	)	$	4	$	-	$	-

	Gain (Loss) Recognized in “Other income (expense)” on Derivatives
	June 30,
	2017		2016
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	$	921	$	575
Embedded derivatives		176		10
	$	1,097	$	585

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, 2017 and 2016 (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,
	2017			2016			2017			2016			2017		2016
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	(1,466	)	$	431		$	(1,580	)	$	(50	)	$	-	$	-
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		(5,373	)		(698	)		-			-			-		-
	$	(6,839	)	$	(267	)	$	(1,580	)	$	(50	)	$	-	$	-

	Gain (Loss) Recognized in “Other income (expense)” on Derivatives
	June 30,
	2017		2016
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	$	82	$	1,370
Embedded derivatives		315		(46	)
	$	397	$	1,324

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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, 2017				December 31, 2016
	Cost		Fair Value		Cost		Fair Value
Mutual funds	$	7,871	$	10,729	$	7,257	$	9,414

The mutual funds held in rabbi trust were 69% equity-based and 31% debt-based as of June 30, 2017. Net investment income (losses), included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016
Gross realized gains from sale of trading securities	$	151		$	-	$	151		$	-
Gross realized (losses) from sale of trading securities		(2	)		-		(2	)		-
Dividend and interest income		25			10		39			19
Net unrealized holding gains (losses)		149			134		542			154
Net investment income (losses)	$	323		$	144	$	730		$	173

Note 8. Deferred Revenue

Deferred revenue consists of the following (in thousands):

	June 30, 2017		December 31, 2016
Future service	$	28,860	$	27,116
Estimated potential penalties and holdbacks		6,206		6,593
Estimated chargebacks		5,419		5,027
	$	40,485	$	38,736

Note 9. Deferred Grants

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

	June 30, 2017			December 31, 2016
Property grants	$	3,098		$	3,353
Lease grants		532			502
Employment grants		43			67
Total deferred grants		3,673			3,922
Less: Lease grants - short-term (1)		(110	)		(94)
Less: Employment grants - short-term (1)		(43	)		(67)
Total long-term deferred grants	$	3,520		$	3,761

⁽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.

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Borrowings consist of the following (in thousands):

	June 30, 2017		December 31, 2016
Revolving credit facility	$	267,000	$	267,000
Less: Current portion		-		-
Total long-term debt	$	267,000	$	267,000

On April 1, 2016, the Company borrowed $216.0 million under its 2015 Credit Agreement in connection with the acquisition of Clearlink.

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 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,
	2017		2016		2017		2016
Average daily utilization	$	267,000	$	278,769	$	267,000	$	174,385
Interest expense, including commitment fee (1)	$	1,600	$	1,079	$	3,043	$	1,454
Weighted average interest rate (2)		2.4%		1.6%		2.3%		1.9%

⁽¹⁾ Excludes the amortization of deferred loan fees.    

⁽²⁾ Includes the commitment fee.    

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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, 2016	$	(58,601	)	$	4,170		$	1,029		$	(527	)	$	267		$	(53,662	)
Pre-tax amount		(13,832	)		3,409			212			(2,313	)		(9	)		(12,533	)
Tax (provision) benefit		-			(1,313	)		(8	)		72			-			(1,249	)
Reclassification of (gain) loss to net income		-			-			(52	)		527			(58	)		417
Foreign currency translation		40			-			(56	)		16			-			-
Balance at December 31, 2016		(72,393	)		6,266			1,125			(2,225	)		200			(67,027	)
Pre-tax amount		20,416			(5,373	)		-			(1,466	)		-			13,577
Tax (provision) benefit		-			2,069			-			28			-			2,097
Reclassification of (gain) loss to net income		-			-			(21	)		1,522			(25	)		1,476
Foreign currency translation		(34	)		-			(18	)		52			-			-
Balance at June 30, 2017	$	(52,011	)	$	2,962		$	1,086		$	(2,089	)	$	175		$	(49,877	)
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
	2017			2016			2017			2016			Location
Actuarial Gain (Loss) Related to Pension Liability: (1)
Pre-tax amount	$	11		$	10		$	21		$	22			Direct salaries and related costs
Tax (provision) benefit		-			-			-			-			Income taxes
Reclassification to net income		11			10			21			22
Gain (Loss) on Cash Flow Hedging Instruments: (2)
Pre-tax amount		(820	)		4			(1,580	)		(50	)		Revenues
Tax (provision) benefit		17			3			58			22			Income taxes
Reclassification to net income		(803	)		7			(1,522	)		(28	)
Gain (Loss) on Post Retirement Obligation: (1)
Pre-tax amount		13			14			25			27			General and administrative
Tax (provision) benefit		-			-			-			-			Income taxes
Reclassification to net income		13			14			25			27
Total reclassification of gain (loss) to net income	$	(779	)	$	31		$	(1,476	)	$	21

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

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

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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Note 12. Income Taxes

The Company’s effective tax rate was 15.0% and 29.9% for the three months ended June 30, 2017 and 2016, respectively. The decrease in the effective tax rates is primarily due to the recognition of a $1.2 million previously unrecognized tax benefit arising from the effective settlement of the Canadian Revenue Agency audit. The decrease in the effective tax rate was also affected by several additional 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 as compared to the U.S. statutory federal income tax rate of 35.0% was primarily due to the aforementioned factors as well as the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in unrecognized tax benefits, 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 22.9% and 30.4% for the six months ended June 30, 2017 and 2016, respectively. The decrease in the effective tax rates is primarily due to the recognition of a $1.2 million previously unrecognized tax benefit arising from the effective settlement of the Canadian Revenue Agency audit and the recognition of a $0.9 million tax benefit resulting from the adoption of ASU 2016-09 on January 1, 2017. The decrease in the effective tax rate was also affected by several additional 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 as compared to the U.S. statutory federal income tax rate of 35.0% was primarily due to the aforementioned factors as well as the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in unrecognized tax benefits, 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 (“ASC 740”). 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 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, was $13.8 million as of December 31, 2016 (none at June 30, 2017) and was included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheet. As of June 30, 2017, the Company determined that all material aspects of the Canadian audit were effectively settled pursuant to ASC 740. As a result, the Company recognized a net income tax benefit of $1.2 million and the deposits were applied against the anticipated liability.

With the effective settlement of the Canadian audit, the Company has no significant tax jurisdictions under audit; however, the Company is currently under audit in several tax jurisdictions. The Company believes it is adequately reserved for the remaining audits and their resolution is not expected to have a material impact on its financial condition and results of operations.

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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,
	2017		2016		2017		2016
Basic:
Weighted average common shares outstanding		41,854		41,970		41,756		41,838
Diluted:
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust		80		131		163		263
Total weighted average diluted shares outstanding		41,934		42,101		41,919		42,101
Anti-dilutive shares excluded from the diluted earnings per share calculation		46		21		16		21

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 5.3 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.

There were no shares repurchased under the Company’s share repurchase programs during the three and six months ended June 30, 2017 and 2016.

Note 14. Commitments and Loss Contingency

Commitments

During the six months ended June 30, 2017, 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, 2017, including the impact of the leases assumed in connection with the Telecommunications Asset acquisition (in thousands):

	Amount
2017 (remaining six months)	$	2,780
2018		7,272
2019		6,822
2020		7,506
2021		7,610
2022		6,926
2023 and thereafter		18,407
Total minimum payments required	$	57,323

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During the six months ended June 30, 2017, 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, 2017 (in thousands):

	Amount
2017 (remaining six months)	$	5,560
2018		5,881
2019		5,176
2020		619
2021		-
2022		-
2023 and thereafter		-
Total minimum payments required	$	17,236

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. On September 26, 2016, the Company entered into an addendum to the Qelp purchase agreement with the sellers to settle the outstanding contingent consideration for EUR 4.0 million to be paid by June 30, 2017. The Company paid $4.4 million in May 2017 to settle the outstanding contingent consideration obligation.

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. As of June 30, 2017, the fair value of the remaining contingent consideration was $1.1 million. The estimated future value of the contingent consideration is $1.1 million and is expected to be paid on varying dates through October 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.

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,
	2017			2016			2017			2016
Service cost	$	128		$	120		$	253		$	238
Interest cost		49			45			98			89
Recognized actuarial (gains)		(11	)		(10	)		(21	)		(22	)
Net periodic benefit cost	$	166		$	155		$	330		$	305

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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,
	2017		2016		2017		2016
401(k) plan contributions	$	309	$	334	$	620	$	619

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, 2017		December 31, 2016
Postretirement benefit obligation	$	21	$	27
Unrealized gains (losses) in AOCI (1)	$	175	$	200
(1)     Unrealized gains (losses) are impacted by changes in discount rates related to the postretirement obligation.

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,
	2017			2016			2017			2016
Stock-based compensation (expense) (1)	$	(2,261	)	$	(3,547	)	$	(4,732	)	$	(5,729	)
Income tax benefit (2)		871			1,348			1,822			2,177
Excess tax benefit (deficiency) from stock-based compensation (3)		-			149			-			2,060

⁽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 Statement of Changes in Shareholders’ Equity.

There were no capitalized stock-based compensation costs as of June 30, 2017 and December 31, 2016.

Beginning January 1, 2017, as a result of the adoption of ASU 2016-09, the Company began accounting for forfeitures as they occur, rather than estimating expected forfeitures. The net cumulative effect of this change was recognized as a $0.2 million reduction to retained earnings as of January 1, 2017. Additionally, excess tax benefits (deficiencies) from stock compensation are included in “Income taxes” in the accompanying Condensed Consolidated Statements of Income subsequent to the adoption of ASU 2016-09.

2011 Equity Incentive Plan — The Company’s Board of Directors (the “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 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.

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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,
	2017		2016
Expected volatility		19.3%		25.3%
Weighted-average volatility		19.3%		25.3%
Expected dividend rate		0.0%		0.0%
Expected term (in years)		5.0		5.0
Risk-free rate		1.9%		1.5%

The following table summarizes SARs activity as of June 30, 2017 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, 2017		633		$	-
Granted		396		$	-
Exercised		(196	)	$	-
Forfeited or expired		-		$	-
Outstanding at June 30, 2017		833		$	-		8.9	$	4,214
Vested or expected to vest at June 30, 2017		833		$	-		8.9	$	4,214
Exercisable at June 30, 2017		163		$	-		7.2	$	1,304

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

	Six Months Ended June 30,
	2017		2016
Number of SARs granted		396		323
Weighted average grant-date fair value per SAR	$	6.24	$	7.68
Intrinsic value of SARs exercised	$	1,678	$	1,691
Fair value of SARs vested	$	1,846	$	1,520

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The following table summarizes nonvested SARs activity as of June 30, 2017 and for the six months then ended:

Nonvested Stock Appreciation Rights	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		515		$	7.76
Granted		396		$	6.24
Vested		(241	)	$	7.69
Forfeited or expired		-		$	-
Nonvested at June 30, 2017		670		$	6.88

As of June 30, 2017, there was $4.0 million of total unrecognized compensation cost, net of actual 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 actual 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, 2017 and for the six months then ended:

Nonvested Restricted Shares and RSUs	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		1,136		$	25.47
Granted		480		$	29.42
Vested		(328	)	$	20.95
Forfeited or expired		(63	)	$	20.71
Nonvested at June 30, 2017		1,225		$	28.48

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,
	2017		2016
Number of restricted shares/RSUs granted		480		451
Weighted average grant-date fair value per restricted share/RSU	$	29.42	$	30.32
Fair value of restricted shares/RSUs vested	$	6,868	$	6,785

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As of June 30, 2017, there was $27.0 million of total unrecognized compensation cost, net of actual 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 2.0 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 shareholders’ 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 shareholders’ 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.

At the Board’s regularly scheduled meeting on December 6, 2016, upon the recommendation of the Compensation Committee, the Board determined that the amount of the cash compensation payable to non-employee directors beginning on the date of the 2017 annual shareholders’ meeting would be increased by $15,000 per year to a total of $70,000.

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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. Directors who are executive officers of the Company receive no compensation for service as members of either the Board of Directors or any committees of the Board.

The following table summarizes nonvested common stock share award activity as of June 30, 2017 and for the six months then ended:

Nonvested Common Stock Share Awards	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		10		$	28.69
Granted		24		$	32.93
Vested		(14	)	$	30.41
Forfeited or expired		-		$	-
Nonvested at June 30, 2017		20		$	32.54

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,
	2017		2016
Number of share awards granted		24		32
Weighted average grant-date fair value per share award	$	32.93	$	29.04
Fair value of share awards vested	$	430	$	410

As of June 30, 2017, there was $0.6 million of total unrecognized compensation cost, net of actual 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 less than one year.

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 December 9, 2015, effective as of January 1, 2016, and was subsequently amended on May 18, 2016, effective as of June 30, 2016, August 17, 2016, effective as of January 1, 2017 and May 25, 2017, effective as of July 1, 2017. Eligibility is limited to a select group of key management and employees who are expected to receive an annualized base salary (which will not take into account bonuses or commissions) that exceeds the amount taken into account for purposes of determining highly compensated employees under Section 414(q) of the Internal Revenue Code of 1986 based on the current year’s base salary and applicable dollar amounts. The Deferred Compensation Plan provides participants with the ability to defer between 1% and 80% of their compensation (between 1% and 100% prior to June 30, 2016, the effective date of the first amendment) 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 participants on a quarterly basis up to a total of $12,000 per year for the president, chief executive officer and executive vice presidents, $7,500 per year for senior vice presidents, global vice presidents and vice presidents, and, effective January 1, 2017, $5,000 per year for all other participants (there was no match for other participants prior to January 1, 2017, the effective date of the second amendment). Matching contributions and the associated earnings vest over a seven-year service period. Vesting will be accelerated in the event of the participant’s death or disability, a change in control or retirement (defined as separate from service after age 65). In the event of a distribution of benefits as a result of a change in control of the Company, the Company will increase the benefit by an amount sufficient to offset the income tax obligations created by the distribution of benefits. 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, 2017 and December 31, 2016, liabilities of $10.8 million and $9.4 million, respectively, of the Deferred Compensation Plan were recorded in “Accrued employee compensation and benefits” in the accompanying Condensed Consolidated Balance Sheets.

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Additionally, the Company’s common stock match associated with the Deferred Compensation Plan, with a carrying value of approximately $2.1 million and $1.8 million as of June 30, 2017 and December 31, 2016, 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, 2017 and for the six months then ended:

Nonvested Common Stock	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		2		$	22.77
Granted		10		$	30.66
Vested		(8	)	$	30.62
Forfeited or expired		-		$	-
Nonvested at June 30, 2017		4		$	27.08

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,
	2017		2016
Number of shares of common stock granted		10		6
Weighted average grant-date fair value per common stock	$	30.66	$	29.76
Fair value of common stock vested	$	240	$	183
Cash used to settle the obligation	$	422	$	359

As of June 30, 2017, there was $0.1 million of total unrecognized compensation cost, net of actual 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 3.7 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 engagement solutions (with an emphasis on inbound technical support, digital support and demand generation, and customer service) and technical staffing and (2) EMEA, which includes Europe, the Middle East and Africa, and provides outsourced customer engagement 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 engagement 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, 2017:
Revenues	$	314,871	$	60,540	$	27		$	375,438
Percentage of revenues		83.9%		16.1%		0.0%			100.0%
Depreciation, net	$	11,842	$	1,254	$	724		$	13,820
Amortization of intangibles	$	4,989	$	261	$	-		$	5,250
Income (loss) from operations	$	26,089	$	2,163	$	(16,962	)	$	11,290
Total other income (expense), net						(890	)		(890	)
Income taxes						(1,555	)		(1,555	)
Net income								$	8,845
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
Total other income (expense), net						(373	)		(373	)
Income taxes						(3,891	)		(3,891	)
Net income								$	9,138
Six Months Ended June 30, 2017:
Revenues	$	635,802	$	123,607	$	43		$	759,452
Percentage of revenues		83.7%		16.3%		0.0%			100.0%
Depreciation, net	$	23,310	$	2,440	$	1,418		$	27,168
Amortization of intangibles	$	9,967	$	514	$	-		$	10,481
Income (loss) from operations	$	64,022	$	7,743	$	(34,461	)	$	37,304
Total other income (expense), net						(1,582	)		(1,582	)
Income taxes						(8,165	)		(8,165	)
Net income								$	27,557
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
Total other income (expense), net						(475	)		(475	)
Income taxes						(10,105	)		(10,105	)
Net income								$	23,092

⁽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, 2017 and 2016. Inter-segment revenues are not material to the Americas and EMEA segment results.

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The Company’s reportable segments are evaluated regularly by its chief operating decision maker to decide how to allocate resources and assess performance. The chief operating decision maker evaluates performance based upon stand-alone segment revenue and income (loss) from operations. Because assets by segment are not reported to or used by the Company’s chief operating decision maker to allocate resources, or to assess performance, total assets by segment are not disclosed.

Note 18. Other Income (Expense)

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017		2016
Foreign currency transaction gains (losses)	$	(535	)	$	1,410		$	644	$	2,756
Gains (losses) on foreign currency derivative instruments not designated as hedges		1,097			(585	)		397		(1,324	)
Other miscellaneous income (expense)		269			242			642		188
	$	831		$	1,067		$	1,683	$	1,620

Note 19. Related Party Transactions

In January 2008, the Company entered into a lease for a customer engagement 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 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, 2017 and 2016, and  $0.2 million during both the six months ended June 30, 2017 and 2016 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, 2017, and the related condensed consolidated statements of operations and comprehensive income (loss) for the three-month and six-month periods ended June 30, 2017 and 2016, of changes in shareholders’ equity for the six-month period ended June 30, 2017, and of cash flows for the six-month periods ended June 30, 2017 and 2016. 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, 2016, 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 March 1, 2017, 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, 2016 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 9, 2017

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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, 2016, 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 engagement 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 engagement 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 engagement 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 inbound customer engagement solutions and services to Global 2000 companies, primarily in the communications, financial services, healthcare, technology, transportation and leisure, retail and other 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 regions primarily provide customer engagement services (with an emphasis on inbound technical support, digital marketing and demand generation, and customer service), which includes customer assistance, healthcare and roadside assistance, technical support, and product and service sales to our clients’ customers. These services, which represented 99.5% and 99.2% of consolidated revenues during the three months ended June 30, 2017 and 2016, respectively, and 99.4% and 99.1% of consolidated revenues during the six months ended June 30, 2017 and 2016, respectively, are delivered through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. We also provide various enterprise support services in the

41

United States (“U.S.”) that include services for our clients’ 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 engagement centers across six continents, including North America, South America, Europe, Asia, Australia and Africa. We deliver cost-effective solutions that enhance the customer service experience, promote stronger brand loyalty, and bring about high levels of performance and profitability.

Acquisition of Telecommunications Assets

On May 31, 2017, we completed the acquisition of certain assets of a Global 2000 telecommunications service provider (the “Telecommunications Asset acquisition”) to strengthen and create new partnerships and expand our geographic footprint in North America.

The total purchase price of $7.5 million was funded through cash on hand.

The results of operations of the Telecommunications Asset acquisition have been reflected in the accompanying Condensed Consolidated Statements of Operations since May 31, 2017.

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.

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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,
							2017									2017
(in thousands)	2017			2016			$ Change			2017			2016			$ Change
Revenues	$	375,438		$	364,402		$	11,036		$	759,452		$	685,148		$	74,304
Operating expenses:
Direct salaries and related costs		248,643			239,442			9,201			495,808			444,997			50,811
General and administrative		92,246			94,335			(2,089	)		184,300			174,845			9,455
Depreciation, net		13,820			11,960			1,860			27,168			22,744			4,424
Amortization of intangibles		5,250			5,263			(13	)		10,481			8,890			1,591
Impairment of long-lived assets		4,189			-			4,189			4,391			-			4,391
Total operating expenses		364,148			351,000			13,148			722,148			651,476			70,672
Income from operations		11,290			13,402			(2,112	)		37,304			33,672			3,632
Other income (expense):
Interest income		144			141			3			299			294			5
Interest (expense)		(1,865	)		(1,581	)		(284	)		(3,564	)		(2,389	)		(1,175	)
Other income (expense), net		831			1,067			(236	)		1,683			1,620			63
Total other income (expense), net		(890	)		(373	)		(517	)		(1,582	)		(475	)		(1,107	)
Income before income taxes		10,400			13,029			(2,629	)		35,722			33,197			2,525
Income taxes		1,555			3,891			(2,336	)		8,165			10,105			(1,940	)
Net income	$	8,845		$	9,138		$	(293	)	$	27,557		$	23,092		$	4,465

Three Months Ended June 30, 2017 Compared to Three Months Ended June 30, 2016

Revenues

	Three Months Ended June 30,
	2017					2016
			% of					% of
(in thousands)	Amount		Revenues			Amount		Revenues			$ Change
Americas	$	314,871		83.9	%	$	305,211		83.8	%	$	9,660
EMEA		60,540		16.1	%		59,152		16.2	%		1,388
Other		27		0.0	%		39		0.0	%		(12	)
Consolidated	$	375,438		100.0	%	$	364,402		100.0	%	$	11,036

Consolidated revenues increased $11.0 million, or 3.0%, for the three months ended June 30, 2017 from the comparable period in 2016.

The increase in Americas’ revenues was due to higher volumes from existing clients of $11.0 million and new clients of $10.7 million, partially offset by end-of-life client programs of $9.2 million and a negative foreign currency impact of $2.8 million. Revenues from our offshore operations represented 41.2% of Americas’ revenues, compared to 40.7% for the comparable period in 2016.

The increase in EMEA’s revenues was due to higher volumes from existing clients of $4.5 million and new clients of $2.1 million, partially offset by a negative foreign currency impact of $4.2 million and end-of-life client programs of $1.0 million.

On a consolidated basis, we had 51,400 brick-and-mortar seats as of June 30, 2017, an increase of 5,700 seats from the comparable period in 2016. Included in this seat count are 2,900 seats associated with the Telecommunications Asset acquisition. This increase in seats, net of the Telecommunications Asset acquisition additions, reflect seat additions to support higher projected demand. The capacity utilization rate on a combined basis was 72% compared to 78% in the comparable period in 2016. This decrease was primarily due to capacity additions related to the Telecommunications Asset acquisition with its seasonally low utilization rate, as well as capacity additions owing to higher projected demand and certain operational inefficiencies.

On a geographic segment basis, 44,400 seats were located in the Americas, an increase of 5,100 seats from the comparable period in 2016, and 7,000 seats were located in EMEA, an increase of 600 seats from the comparable period in 2016. Capacity utilization rates as of June 30, 2017 were 71% for the Americas and 80% for EMEA, compared to 77% and 79%, respectively, in the comparable period in 2016, with the decrease in utilization in the Americas primarily due to the aforementioned factors. As a result of the Telecommunications Asset acquisition, we expect to take further actions in streamlining our capacity footprint in the U.S. We strive to attain a capacity utilization rate of 85% at each of our locations.

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Direct Salaries and Related Costs

	Three Months Ended June 30,
	2017					2016
			% of					% of					Change in % of
(in thousands)	Amount		Revenues			Amount		Revenues			$ Change		Revenues
Americas	$	205,028		65.1	%	$	197,077		64.6	%	$	7,951		0.5	%
EMEA		43,615		72.0	%		42,365		71.6	%		1,250		0.4	%
Consolidated	$	248,643		66.2	%	$	239,442		65.7	%	$	9,201		0.5	%

The increase of $9.2 million in direct salaries and related costs included a positive foreign currency impact of $4.3 million in the Americas and a positive foreign currency impact of $2.8 million in EMEA.

The increase in Americas’ direct salaries and related costs, as a percentage of revenues, was primarily attributable to higher compensation costs of 0.4%, higher customer-acquisition advertising costs of 0.1% and higher other costs of 0.3%, partially offset by lower communications costs of 0.3%.

The increase in EMEA’s direct salaries and related costs, as a percentage of revenues, was primarily attributable to higher compensation costs of 1.4% driven by a decrease in agent productivity principally within the communications vertical in the current period, partially offset by lower fulfillment materials costs of 0.9% and lower other costs of 0.1%.

General and Administrative

	Three Months Ended June 30,
	2017				2016
			% of				% of					Change in % of
(in thousands)	Amount		Revenues		Amount		Revenues		$ Change			Revenues
Americas	$	62,734		19.9%	$	62,098		20.3%	$	636			-0.4%
EMEA		13,247		21.9%		12,461		21.1%		786			0.8%
Other		16,265		-		19,776		-		(3,511	)		-
Consolidated	$	92,246		24.6%	$	94,335		25.9%	$	(2,089	)		-1.3%

The decrease of $2.1 million in general and administrative expenses included a positive foreign currency impact of $1.1 million in the Americas and a positive foreign currency impact of $1.1 million in EMEA.

The decrease in Americas’ general and administrative expenses, as a percentage of revenues, was primarily attributable to a reduction in technology costs of 0.2% allocated from corporate, lower equipment maintenance costs of 0.2% and lower other costs of 0.3%, partially offset by higher 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 1.0%, partially offset by lower facility-related costs of 0.2%.

The decrease of $3.5 million in Other general and administrative expenses, which includes corporate and other costs, was primarily attributable to lower merger and integration costs of $2.5 million, lower compensation costs of $1.5 million and lower other costs of $0.2 million, partially offset by a reduction in technology costs of $0.7 million allocated to the Americas.

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Depreciation and Amortization

	Three Months Ended June 30,
	2017				2016
			% of				% of					Change in % of
(in thousands)	Amount		Revenues		Amount		Revenues		$ Change			Revenues
Depreciation, net:
Americas	$	11,842		3.8%	$	10,316		3.4%	$	1,526			0.4%
EMEA		1,254		2.1%		1,162		2.0%		92			0.1%
Other		724		-		482		-		242			-
Consolidated	$	13,820		3.7%	$	11,960		3.3%	$	1,860			0.4%
Amortization of intangibles:
Americas	$	4,989		1.6%	$	4,995		1.6%	$	(6	)		0.0%
EMEA		261		0.4%		268		0.5%		(7	)		-0.1%
Other		-		-		-		-		-			-
Consolidated	$	5,250		1.4%	$	5,263		1.4%	$	(13	)		0.0%

The increase in depreciation was primarily due to new depreciable fixed assets placed into service supporting site expansions and infrastructure upgrades, partially offset by certain fully depreciated fixed assets.

The amortization remained consistent with the comparable period.

Impairment of Long-Lived Assets

	Three Months Ended June 30,
	2017				2016
			% of				% of				Change in % of
(in thousands)	Amount		Revenues		Amount		Revenues		$ Change		Revenues
Americas	$	4,189		1.3%	$	-		0.0%	$	4,189		1.3%
EMEA		-		0.0%		-		0.0%		-		0.0%
Other		-		-		-		-		-		-
Consolidated	$	4,189		1.1%	$	-		0.0%	$	4,189		1.1%

See Note 4, Fair Value, of the “Notes to Consolidated Financial Statements” for further information regarding the impairment of long-lived assets.

Other Income (Expense)

	Three Months Ended June 30,
(in thousands)	2017			2016			$ Change
Interest income	$	144		$	141		$	3
Interest (expense)	$	(1,865	)	$	(1,581	)	$	(284	)
Other income (expense), net:
Foreign currency transaction gains (losses)	$	(535	)	$	1,410		$	(1,945	)
Gains (losses) on foreign currency derivative instruments not designated as hedges		1,097			(585	)		1,682
Other miscellaneous income (expense)		269			242			27
Total other income (expense), net	$	831		$	1,067		$	(236	)

Interest income remained consistent with the comparable period.

The increase in interest (expense) was primarily due to $216.0 million in borrowings used to acquire Clearlink in April 2016, partially offset by a decrease in the interest accretion on contingent consideration.

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Income Taxes

	Three Months Ended June 30,
(in thousands)	2017		2016		$ Change
Income before income taxes	$	10,400	$	13,029	$	(2,629	)
Income taxes	$	1,555	$	3,891	$	(2,336	)
					% Change
Effective tax rate		15.0%		29.9%		-14.9%

The decrease in the effective tax rate in 2017 compared to 2016 is primarily due to the recognition of a $1.2 million previously unrecognized tax benefit arising from the effective settlement of the Canadian Revenue Agency audit. The decrease in the effective tax rate was also affected by several additional factors, including shifts in earnings among the various jurisdictions in which we operate, none of which are individually material.

Six Months Ended June 30, 2017 Compared to Six Months Ended June 30, 2016

Revenues

	Six Months Ended June 30,
	2017					2016
			% of					% of
(in thousands)	Amount		Revenues			Amount		Revenues			$ Change
Americas	$	635,802		83.7	%	$	567,287		82.8	%	$	68,515
EMEA		123,607		16.3	%		117,777		17.2	%		5,830
Other		43		0.0	%		84		0.0	%		(41	)
Consolidated	$	759,452		100.0	%	$	685,148		100.0	%	$	74,304

Consolidated revenues increased $74.3 million, or 10.8%, for the six months ended June 30, 2017 from the comparable period in 2016.

The increase in Americas’ revenues was due to an increase in Clearlink acquisition revenues of $43.1 million, higher volumes from existing clients of $32.4 million and new clients of $14.7 million, partially offset by end-of-life client programs of $18.6 million and a negative foreign currency impact of $3.1 million. Revenues from our offshore operations represented 41.0% of Americas’ revenues, compared to 42.9% for the comparable period in 2016.

The increase in EMEA’s revenues was due to higher volumes from existing clients of $13.5 million and new clients of $3.5 million, partially offset by a negative foreign currency impact of $9.1 million and end-of-life client programs of $2.1 million.

Direct Salaries and Related Costs

	Six Months Ended June 30,
	2017					2016
			% of					% of					Change in % of
(in thousands)	Amount		Revenues			Amount		Revenues			$ Change		Revenues
Americas	$	408,759		64.3	%	$	360,724		63.6	%	$	48,035		0.7	%
EMEA		87,049		70.4	%		84,273		71.6	%		2,776		-1.2	%
Consolidated	$	495,808		65.3	%	$	444,997		64.9	%	$	50,811		0.4	%

The increase of $50.8 million in direct salaries and related costs included a positive foreign currency impact of $6.1 million in the Americas and a positive foreign currency impact of $5.8 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 1.5% in connection with Clearlink’s operations, partially offset by lower compensation costs of 0.7% driven by Clearlink’s operations which has lower direct labor costs relative to our customer engagement services business and lower other costs of 0.1%.

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The decrease in EMEA’s direct salaries and related costs, as a percentage of revenues, was primarily attributable to lower fulfillment materials costs of 0.8%, lower compensation costs of 0.5% and lower communication costs of 0.3%, partially offset by higher other costs of 0.4%.

General and Administrative

	Six Months Ended June 30,
	2017				2016
			% of				% of					Change in % of
(in thousands)	Amount		Revenues		Amount		Revenues		$ Change			Revenues
Americas	$	125,353		19.7%	$	114,996		20.3%	$	10,357			-0.6%
EMEA		25,861		20.9%		24,345		20.7%		1,516			0.2%
Other		33,086		-		35,504		-		(2,418	)		-
Consolidated	$	184,300		24.3%	$	174,845		25.5%	$	9,455			-1.2%

The increase of $9.5 million in general and administrative expenses included a positive foreign currency impact of $1.7 million in the Americas and a positive foreign currency impact of $2.1 million in EMEA.

The decrease in Americas’ general and administrative expenses, as a percentage of revenues, was primarily attributable to a reduction in technology costs of 0.3% allocated from corporate, lower equipment maintenance costs of 0.2% and lower other costs of 0.4%, partially offset by higher compensation 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 0.6%, partially offset by lower facility-related costs of 0.2% and lower communication costs of 0.2%.

The decrease of $2.4 million in Other general and administrative expenses, which includes corporate and other costs, was primarily attributable to lower merger and integration costs of $3.9 million and lower compensation costs of $0.8 million, partially offset by a reduction in technology costs of $1.8 million allocated to the Americas, higher software maintenance costs of $0.3 million and higher legal and professional fees of $0.2 million.

Depreciation and Amortization

	Six Months Ended June 30,
	2017				2016
			% of				% of					Change in % of
(in thousands)	Amount		Revenues		Amount		Revenues		$ Change			Revenues
Depreciation, net:
Americas	$	23,310		3.7%	$	19,492		3.4%	$	3,818			0.3%
EMEA		2,440		2.0%		2,326		2.0%		114			0.0%
Other		1,418		-		926		-		492				-
Consolidated	$	27,168		3.6%	$	22,744		3.3%	$	4,424			0.3%
Amortization of intangibles:
Americas	$	9,967		1.6%	$	8,363		1.5%	$	1,604			0.1%
EMEA		514		0.4%		527		0.4%		(13	)		0.0%
Other		-		-		-		-		-			-
Consolidated	$	10,481		1.4%	$	8,890		1.3%	$	1,591			0.1%

The increase in depreciation was primarily due to new depreciable fixed assets placed into service supporting site expansions and infrastructure upgrades as well as 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, partially offset by certain fully amortized intangible assets.

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Impairment of Long-Lived Assets

	Six Months Ended June 30,
	2017			2016
			% of			% of			Change in % of
(in thousands)	Amount		Revenues	Amount		Revenues	$ Change		Revenues
Americas	$	4,391	0.7%	$	-	0.0%	$	4,391	0.7%
EMEA		-	0.0%		-	0.0%		-	0.0%
Other		-	-		-	-		-	-
Consolidated	$	4,391	0.6%	$	-	0.0%	$	4,391	0.6%

See Note 4, Fair Value, of the “Notes to Consolidated Financial Statements” for further information regarding the impairment of long-lived assets.

Other Income (Expense)

	Six Months Ended June 30,
(in thousands)	2017			2016			$ Change
Interest income	$	299		$	294		$	5
Interest (expense)	$	(3,564	)	$	(2,389	)	$	(1,175	)
Other income (expense), net:
Foreign currency transaction gains (losses)	$	644		$	2,756		$	(2,112	)
Gains (losses) on foreign currency derivative instruments not designated as hedges		397			(1,324	)		1,721
Other miscellaneous income (expense)		642			188			454
Total other income (expense), net	$	1,683		$	1,620		$	63

Interest income remained consistent with the comparable period.

The increase in interest (expense) was primarily due to $216.0 million in borrowings used to acquire Clearlink in April 2016, partially offset by a decrease in the interest accretion on contingent consideration.

The increase in other miscellaneous income (expense) was primarily due to the net investment income (losses) related to the investments held in rabbi trust. See Note 7, Investments Held in Rabbi Trust, of “Notes to Condensed Consolidated Financial Statements” for further information.

Income Taxes

	Six Months Ended June 30,
(in thousands)	2017		2016		$ Change
Income before income taxes	$	35,722	$	33,197	$	2,525
Income taxes	$	8,165	$	10,105	$	(1,940	)
					% Change
Effective tax rate		22.9%		30.4%		-7.5%

The decrease in the effective tax rate in 2017 compared to 2016 is primarily due to the recognition of a $1.2 million previously unrecognized tax benefit arising from the effective settlement of the Canadian Revenue Agency audit and the recognition of a $0.9 million tax benefit resulting from the adoption of ASU 2016-09 on January 1, 2017. The decrease in the effective tax rate was also affected by several additional factors, including shifts 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 48.7% and 49.8% of our consolidated revenues in the three months ended June 30, 2017 and 2016, respectively, and 49.1% and 49.1% of our consolidated revenues in the six months ended June 30, 2017 and 2016, 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,
	2017					2016					2017					2016
			% of					% of					% of					% of
	Amount		Revenues			Amount		Revenues			Amount		Revenues			Amount		Revenues
Americas	$	55,627		17.7	%	$	59,710		19.6	%	$	117,161		18.4	%	$	110,854		19.5	%
EMEA		-		0.0	%		-		0.0	%		-		0.0	%		-		0.0	%
	$	55,627		14.8	%	$	59,710		16.4	%	$	117,161		15.4	%	$	110,854		16.2	%
We have multiple distinct contracts with AT&T spread across multiple lines of businesses, which expire at varying dates between 2017 and 2019. 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,
	2017					2016					2017					2016
			% of					% of					% of					% of
	Amount		Revenues			Amount		Revenues			Amount		Revenues			Amount		Revenues
Americas	$	24,818		7.9	%	$	24,495		8.0	%	$	47,744		7.5	%	$	44,549		7.9	%
EMEA		-		0.0	%		-		0.0	%		-		0.0	%		-		0.0	%
	$	24,818		6.6	%	$	24,495		6.7	%	$	47,744		6.3	%	$	44,549		6.5	%
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,
	2017					2016					2017					2016
			% of					% of					% of					% of
	Amount		Revenues			Amount		Revenues			Amount		Revenues			Amount		Revenues
Americas	$	-		0.0	%	$	-		0.0	%	$	-		0.0	%	$	-		0.0	%
EMEA		18,819		31.1	%		17,445		29.5	%		50,523		40.9	%		46,186		39.2	%
	$	18,819		5.0	%	$	17,445		4.8	%	$	50,523		6.7	%	$	46,186		6.7	%

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Business Outlook

For the three months ended September 30, 2017, we anticipate the following financial results:

● Revenues in the range of $397.0 million to $402.0 million;

● Effective tax rate of approximately 14%;

● Fully diluted share count of approximately 42.0 million;

● Diluted earnings per share in the range of $0.33 to $0.36; and

● Capital expenditures in the range of $15.0 million to $18.0 million

For the twelve months ended December 31, 2017, we anticipate the following financial results:

● Revenues in the range of $1,560.0 million to $1,570.0 million;

● Effective tax rate of approximately 22%;

● Fully diluted share count of approximately 42.1 million;

● Diluted earnings per share in the range of $1.35 to $1.41; and

● Capital expenditures in the range of $55.0 million to $65.0 million

We are revising our full-year 2017 revenue and diluted earnings per share outlook downward relative to the business outlook provided in May 2017. Roughly half of the revision in revenues and diluted earnings is demand related, with the remainder being operational inefficiencies, which are attributable to the U.S., which falls under the Americas segment. Although the pipeline of opportunities remains largely healthy across verticals such as financial services, technology and transportation and leisure, we have experienced an unforeseen reduction in demand forecast from a hitherto growing communications client, which is now seeing demand softness and is one of the key factors in the demand-related revision in the business outlook. Meanwhile, we continue to manage the tactical and strategic levers to address the operational inefficiencies around recruitment and retention in order to mitigate the drag on our business outlook. Separately, as a result of the previously mentioned demand softness together with the Telecommunications Asset acquisition, we expect to take further actions in streamlining our capacity footprint in the U.S.

Our revenues and earnings per share assumptions for the third quarter and full-year 2017 are based on foreign exchange rates as of July 2017. 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 $(5.0) million for the full-year 2017. These amounts include the accretion on the Clearlink contingent consideration, which is expected to be a total of $(0.1) million for the year. The amounts, however, exclude the potential impact of any future foreign exchange gains or losses in other income (expense).

We expect a reduction in our full-year 2017 effective tax rate relative to the business outlook provided in May 2017, with the decline due to a shift in the geographic mix of earnings to lower tax rate jurisdictions coupled with a tax benefit arising from the effective settlement of the Canadian Revenue Authority audit.

Not included in this guidance is the impact of any future acquisitions, share repurchase activities or a potential sale of previously exited customer engagement 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 engagement 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 shares to the 2011 Share Repurchase Program, for a total of 10.0 million. A total of 5.3 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, 2017, cash increased $71.6 million from operating activities, $0.1 million of proceeds from grants and $0.1 million of other, which was partially offset by $35.9 million used for capital expenditures, $7.5 million used for the Telecommunications Asset acquisition, a $4.5 million payment of contingent consideration, $3.9 million to repurchase common stock for tax withholding on equity awards and a $0.3 million purchase of intangible assets, resulting in a $34.8 million increase in available cash (including the favorable effects of foreign currency exchange rates on cash and cash equivalents of $15.1 million).

Net cash flows provided by operating activities for the six months ended June 30, 2017 were $71.6 million, compared to $66.7 million for the comparable period in 2016. The $4.9 million increase in net cash flows from operating activities was due to a $4.5 million increase in net income and a $21.7 million increase in non-cash reconciling items such as depreciation, amortization, unrealized foreign currency transaction (gains) losses and deferred income taxes, partially offset by a net decrease of $21.3 million in cash flows from assets and liabilities. The $21.3 million decrease in 2017 from 2016 in cash flows from assets and liabilities was principally a result of a $20.3 million decrease in other liabilities, a $14.4 million increase in taxes receivable, net and a $1.2 million decrease in deferred revenue, partially offset by a $10.6 million decrease in accounts receivable and a $4.0 million decrease in other assets. The $21.3 million decrease in the change in other liabilities was primarily due to $14.7 million related to the timing of accrued employee compensation and benefits and $5.9 million related to other accrued expenses and current liabilities principally due to a decrease of $3.8 million related to the timing of

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payments associated with site expansions and infrastructure upgrades in the six months ended June 30, 2017 over the comparable period in 2016. The $14.4 million increase in taxes receivable, net was primarily due to the effective settlement of the Canadian Revenue Agency audit and a reduction in estimated tax liabilities in the six months ended June 30, 2017 over the comparable period in 2016. The $10.6 million decrease in the change in accounts receivable was primarily due to the timing of billings and collections in the six months ended June 30, 2017 over the comparable period in 2016.

Capital expenditures, which are generally funded by cash generated from operating activities, available cash balances and borrowings available under our credit facilities, were $35.9 million for the six months ended June 30, 2017, compared to $34.4 million for the comparable period in 2016, an increase of $1.5 million. In 2017, we anticipate capital expenditures in the range of $55.0 million to $65.0 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, 2017, we were in compliance with all loan requirements of the 2015 Credit Agreement and had $267.0 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 agreement had an average daily utilization of $267.0 million and $278.8 million during the three months ended June 30, 2017 and 2016, respectively, and $267.0 million and $174.4 million during the six months ended June 30, 2017 and 2016, respectively. During the three months ended June 30, 2017 and 2016, the related interest expense, including the commitment fee and excluding the amortization of deferred loan fees, was $1.6 million and $1.1 million, respectively, which represented weighted average interest rates of 2.4% and 1.6%, respectively. During the six months ended June 30, 2017 and 2016, the related interest expense, including the commitment fee and excluding the amortization of deferred loan fees, was $3.0 million and $1.5 million, respectively, which represented weighted average interest rates of 2.3% and 1.9%, 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.

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 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 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, were $13.8 million as of December 31, 2016 (none at June 30, 2017) and were included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheet. As of June 30, 2017, we determined that all material aspects of the Canadian audit were effectively settled pursuant to ASC 740, Income Taxes. As a result, we recognized a net income tax benefit of $1.2 million and the deposits were netted against the anticipated liability.

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With the effective settlement of the Canadian audit, we have no significant tax jurisdictions under audit; however, we are currently under audit in several tax jurisdictions. We believe we are adequately reserved for the remaining audits and their resolution is not expected to have a material impact on our financial condition and results of operations.

On April 24, 2017, we entered into a definitive Asset Purchase Agreement to purchase certain assets of a Global 2000 telecommunications services provider. The aggregate purchase price of $7.5 million was paid on May 31, 2017, using cash on hand.

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. As of June 30, 2017, the fair value of the remaining contingent consideration liability was $1.1 million. The estimated future value of the contingent consideration is $1.1 million and is expected to be paid on varying dates through October 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. On September 26, 2016, we entered into an addendum to the Qelp purchase agreement with the sellers to settle the outstanding contingent consideration for EUR 4.0 million to be paid by June 30, 2017. We paid $4.4 million in May 2017 to settle the outstanding contingent consideration obligation.

As of June 30, 2017, we had $301.5 million in cash and cash equivalents, of which approximately 91.2%, or $274.8 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, 2016.

Off-Balance Sheet Arrangements and Other

As of June 30, 2017, 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,

52

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, 2017, and the effect these obligations are expected to have on liquidity and cash flow in future periods (in thousands):

	Payments Due By Period
			Less Than						After 5
	Total		1 Year		1 - 3 Years		3 - 5 Years		Years		Other
Operating leases (1)	$	57,323	$	2,780	$	14,094	$	15,116	$	25,333	$	-
Purchase obligations (2)		17,236		5,560		11,057		619		-		-
	$	74,559	$	8,340	$	25,151	$	15,735	$	25,333	$	-

⁽¹⁾  Amounts represent the change in expected cash payments under our operating leases, including the amounts that were assumed in conjunction with the Telecommunications Asset acquisition in May 2017. See Note 14, Commitments and Loss Contingency, to the accompaying 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.

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, 2016.

Critical Accounting Estimates

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

There have been no material changes to our critical accounting estimates in 2017.

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

53

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 engagement 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, 2017 with counterparties through June 2018 with notional amounts totaling $99.0 million. As of June 30, 2017, we had net total derivative liabilities associated with these contracts with a fair value of $1.8 million, which will settle within the next 12 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 $8.6 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, 2017, the fair value of these derivatives was a net liability of $2.1 million. The potential loss in fair value at June 30, 2017, for these contracts resulting from a hypothetical 10% adverse change in the foreign currency exchange rates is approximately $7.9 million. However, this loss would be mitigated by corresponding gains on the underlying exposures.

We had forward exchange contracts with notional amounts totaling $38.2 million that are not designated as hedges. 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, 2017, the fair value of these derivatives was a net liability of $0.2 million. The potential loss in fair value at June 30, 2017, for these contracts resulting from a hypothetical 10% adverse change in the foreign currency exchange rates is approximately $7.1 million. However, this loss would be mitigated by corresponding gains on the underlying exposures.

We had embedded derivative contracts with notional amounts totaling $13.8 million that are not designated as hedges. As of June 30, 2017, the fair value of these derivatives was a net liability of $0.2 million. The potential loss in fair value at June 30, 2017, for these contracts resulting from a hypothetical 10% adverse change in the foreign currency exchange rates is approximately $2.3 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.

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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, 2017, we had $267.0 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, 2017, 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 $1.3 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, 2016, quarterly revenues as a percentage of total consolidated annual revenues were approximately 22%, 25%, 26% and 27%, 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 engagement services, non-U.S. currency fluctuations, and the seasonal pattern of customer engagement support and fulfillment services.

Item 4.  Controls and Procedures

As of June 30, 2017, 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, 2017, 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, 2017 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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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, 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, 2017 (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		Share		or Programs		Programs (1)
April 1, 2017 - April 30, 2017		-	$	-		-		4,748
May 1, 2017 - May 31, 2017		-	$	-		-		4,748
June 1, 2017 - June 30, 2017		-	$	-		-		4,748
Total		-				-		4,748

(1) A total of 10.0 million shares were approved for repurchase under the 2011 Share Repurchase Plan dated August 18, 2011, as amended on March 16, 2017. 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:

10.1	Third Amendment to the Amended and Restated Sykes Enterprises, Incorporated Deferred Compensation Plan, effective as of January 1, 2017.
10.2	Fourth Amendment to the Amended and Restated Sykes Enterprises, Incorporated Deferred Compensation Plan, effective as of July 1, 2017.
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

57

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 9, 2017	By:	/s/ John Chapman
	John Chapman
	Executive Vice President and Chief Financial Officer
	(Principal Financial and Accounting Officer)

58

EXHIBIT INDEX

Exhibit
Number
10.1	Third Amendment to the Amended and Restated Sykes Enterprises, Incorporated Deferred Compensation Plan, effective as of January 1, 2017.
10.2	Fourth Amendment to the Amended and Restated Sykes Enterprises, Incorporated Deferred Compensation Plan, effective as of July 1, 2017.
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-10.1

Exhibit 10.1

THIRD AMENDMENT

TO THE

AMENDED AND RESTATED

SYKES ENTERPRISES, INCORPORATED

DEFERRED COMPENSATION PLAN

This Third Amendment to the Amended and Restatement Sykes Enterprises, Incorporated Deferred Compensation Plan is made and entered into by Sykes Enterprises, Incorporated (the “Company”) this 17th day of August, 2016, and shall be effective for all purposes as of January 1, 2017, unless a different date is set forth below.

W I T N E S S E T H:

WHEREAS, the Company has previously adopted the Sykes Enterprises, Incorporated Deferred Compensation Plan (the “Plan”); and

WHEREAS, pursuant to the terms of the Plan, the Company is authorized and empowered to amend the Plan; and

WHEREAS, the Company has determined that it is appropriate to amend the Plan to clarify the definition of Bonus.

NOW, THEREFORE, paragraphs 2.02.(a) and 2.02.(b) of Article II of the Plan is hereby amended to read as follows:

2.02. (a)     For any Fiscal Year, other than the Fiscal Year in which a Participant first becomes entitled to participate in the Plan, a Participant may elect to defer a specific percentage (between 1% and 80%) of his base compensation or commissions and/or bonus earned during such Fiscal Year (regardless of when paid) as provided herein. Such election shall be made by the execution and delivery to the Administrator (or its agent) of a Participation Agreement prior to the first day of such Fiscal Year. Such election shall become effective with respect to base compensation, commissions and/or bonuses earned after such Fiscal Year begins. An election to defer under this Section 2.02(a) shall continue to apply to base compensation or commissions and/or bonuses earned in subsequent Fiscal Years, unless such election is modified by the Participant. Any modification shall be effective for the next Fiscal Year and shall be made through the execution and delivery of a new Participation Agreement. For Plan purposes, “bonus” shall mean those amounts that are paid as a bonus and meet the definition of “Performance Based Compensation” as set forth in Section 409A of the Code and the regulations issued thereunder.

(b)     For the Fiscal Year in which an individual is first designated as eligible to participate in the Plan, pursuant to Section 2.01, the Participant may elect to defer a specific percentage (between 1% and 80%) of his base compensation or commissions and/or bonus to be earned for the remainder of the Fiscal Year, a Participation Agreement must be submitted by the Participant to the Administrator (or its agent) no later than thirty (30) days following the January 1 or July 1, whichever is applicable, on which such individual becomes designated as an eligible Participant. Any such election made in such Participation Agreement shall be effective only with regard to base compensation or commissions and/or bonuses earned after the date the Participation Agreement is submitted to the Administrator. If a newly eligible Participant does not submit a Participation Agreement within such period of time, such Participant will not be eligible to elect to defer compensation except in accordance with Section 2.02(a) above. An election to defer (or not to defer) under this Section 2.02(b) shall continue to apply to base compensation or commissions and/or bonuses earned in subsequent Fiscal Years unless such election is modified by the Participant. Any modification shall be effective for the next Fiscal Year and shall be made through the execution and delivery of a new Participation Agreement. For Plan purposes, “bonus” shall mean those amounts that are paid as a bonus and meet the definition of “Performance Based Compensation” as set forth in Section 409A of the Code and the regulations issued thereunder.

IN WITNESS WHEREOF, this Third Amendment has been executed and is effective as of the date set forth herein.

SYKES ENTERPRISES, INCORPORATED
By:
Title:	EVP & General Counsel
	“COMPANY”

EX-10.2

Exhibit 10.2

FOURTH AMENDMENT

TO THE

AMENDED AND RESTATED

SYKES ENTERPRISES, INCORPORATED

DEFERRED COMPENSATION PLAN

This Fourth Amendment to the Amended and Restatement Sykes Enterprises, Incorporated Deferred Compensation Plan is made and entered into by Sykes Enterprises, Incorporated (the “Company”) this 25^th day of May, 2017, and shall be effective for all purposes as of July 1, 2017.

W I T N E S S E T H:

WHEREAS, the Company has previously adopted the Sykes Enterprises, Incorporated Deferred Compensation Plan (the “Plan”); and

WHEREAS, pursuant to the terms of the Plan, the Company is authorized and empowered to amend the Plan; and

WHEREAS, the Company has determined that it is appropriate to amend the Plan.

NOW, THEREFORE, the Plan is hereby amended to read as follows:

I.

Section 1.21 of Article I of the Plan is hereby amended to read as follows:

1.21. “Year of Participation” means each twelve (12) month period in which the Participant is eligible to participate in this Plan. For this purpose, the 12-month period begins running on the entry date the Participant enters (or would be eligible to enter) the Plan. Years of Participation shall include the periods for which the Participant was eligible to participate in the nonqualified deferred compensation plan maintained by ICT Group Inc., as well as the period beginning January 1, 2010 and ending December 31, 2010 during which the Participant was employed; provided that the Participant was employed with ICT Group Inc. on February 2, 2010, the date ICT Group Inc. was acquired by SYKES. Further, effective as of January 1, 2013, Years of Participation shall include a Participant’s years of service (each continuous 12-month period of service) that the Participant was employed with Alpine Access, Inc. in a position of Director or above, provided, that such Participant was employed with Alpine Access, Inc. in such position on the date immediately preceding August 20, 2012, the date Alpine Access, Inc. was acquired by SYKES or its Affiliate, and continued in such position or higher position following such date. Effective July 1, 2014 Years of Participation shall include all years of service (each continuous 12-month period of service) that the employee worked outside of the United States in a position that is the equivalent of a Director or above in the United States, as determined by the Administrator.

II.

Section 2.01 of Article II of the Plan is hereby amended by adding the following sentence to the end thereof:

If a Participant is determined for any Plan Year to no longer meet the requirements to be eligible under the terms of the Plan, he or she will no longer be eligible to defer under the Plan, but will continue to be treated as a Participant with respect to any existing balance in any Deferred Compensation Account and Matching Contribution Account.

III.

Sections 2.02(b) and 2.02(c) of Article II of the Plan is hereby amended to read as follows:

2.02.   (b)     For the Fiscal Year in which an individual is first designated as eligible to participate in the Plan, pursuant to Section 2.01, the Participant may elect to defer a specific percentage (between 1% and 80%) of his base compensation or commissions and/or bonus to be earned for the remainder of the Fiscal Year, a Participation Agreement must be submitted by the Participant to the Administrator (or its agent) no later than the January 1 or July 1, whichever is applicable, on which such individual becomes designated as an eligible Participant. Any such election made in such Participation Agreement shall be effective only with regard to base compensation or commissions and/or bonuses earned after the date the Participation Agreement is submitted to the Administrator, provided, however, that any election effective as of July 1 for new Participants will only be permitted with respect to base compensation earned after the date the Participation Agreement is submitted to the Administrator. If a newly eligible Participant does not submit a Participation Agreement within such period of time, such Participant will not be eligible to elect to defer compensation except in accordance with Section 2.02(a) above. An election to defer (or not to defer) under this Section 2.02(b) shall continue to apply to base compensation or commissions and/or bonuses earned in subsequent Fiscal Years unless such election is modified by the Participant. Any modification shall be effective for the next Fiscal Year and shall be made through the execution and delivery of a new Participation Agreement. For Plan purposes, “bonus” shall mean those amounts that are paid as a bonus and meet the definition of “Performance Based Compensation” as set forth in Section 409A of the Code and the regulations issued thereunder.

2.02.   (c)     As part of his deferral election, a Participant may elect to receive all or a portion of the amounts deferred under (a) or (b) above as of January 31^st of a specified year (referred to as an “in-service” benefit) provided that the specified year selected is not earlier than the third Fiscal Year following the Fiscal Year for which the in-service benefit is first elected. For example, if deferrals are elected for the 2016 Plan Year, the date of the in-service benefit distribution cannot be before January 15, 2019. Such election shall continue to apply to deferrals made in subsequent years until modified or changed, provided, however, that the election shall lapse with respect to amounts deferred for the year in which the in-service benefit is to be paid. If the in-service benefit election lapses, the Participant will be deemed to have elected to receive such amounts for which the in-service benefit election lapsed in accordance with his original Separation from Service election filed under the provisions of Section 4.01, unless another in-service benefit election is timely made. Any modification or change to the in-service benefit election will be effective for amounts deferred for the next Fiscal Year. Further, if a Participant becomes entitled to a distribution under the Plan prior to the in-service benefit distribution date, he will be paid out in accordance with Section 4.01, provided, that in the event of the Participant’s Separation from Service prior to his in-service distribution date, the Participant will receive his benefit in accordance with his original Separation from Service election that was filed under the provisions of Section 4.01.

IV.

Article III of the Plan is hereby amended by adding the following new section 3.05.

3.05. A Participant’s Deferred Compensation Account may be charged from time to time with the Participant’s share of reasonable fees and expenses related to the administration of the Plan, as determined by the Administrator.

V.

Section 4.01 (c) of Article IV of the Plan is hereby amended to read as follows:

(c) Any in-service benefit of amounts deferred in accordance with Section 2.02, shall be paid on January 31^st (or as soon as administratively possible following that date) of the year selected by the Participant. The year of payment with respect to an in-service benefit is generally irrevocable unless the Participant, while an employee of SYKES or an Affiliate, requests a change and (i) the change does not take effect until at least 12 months after the date on which the election is made,

(ii) the change is made at least 12 months prior to the date the payment is scheduled to commence, and (iii) payment is deferred for a period of not less than 5 years from the date payment would otherwise have been made (unless payment is being made for disability or death), and such request is permitted under Section 409A of the Code. Except as required under Section 409A of the Code, a Participant is not limited as to the number of changes that can be made under the Plan.

VI.

Section 4.01 (g) of Article IV of the Plan is hereby amended to read as follows:

(g) In the event of death of the Participant while still an employee, the balance (or remaining balance) in the Participant’s Deferred Compensation Account and any shares of SYKES common stock in the Matching Contribution Account will be distributed to the Participant’s named Beneficiary on the first day of the second month following the Participant’s death. If a Participant dies after Separation from Service with the Employer, benefits will be paid (or continue to be paid) to the Participant’s Beneficiary in accordance with the Participant’s election (or deemed election) as to the timing and form of payment.

VII.

Section 4.01 (h) of Article IV of the Plan is hereby amended to read as follows:

(h) In the event of the Participant’s Disability while still an employee as defined herein, the Participant’s Deferred Compensation Account and total distribution of the shares of SYKES common stock held in the Matching Contribution Account will be paid to the Participant on the first day of the second month following the Participant’s Disability. In the event of the Participant’s Disability after Separation from Service with the Employer, benefits will be paid (or continue to be paid) in accordance with the Participant’s election (or deemed election) as to the timing and form of payment.

VIII.

Section 4.02(f) of Article IV of the Plan is hereby amended to read as follows:

(f) Such election or deemed election as to the form is generally irrevocable unless the Participant, while employed with SYKES or an Affiliate, requests a change and (i) the change does not take effect until at least 12 months after the date on which the election is made, (ii) the change is made at least 12 months prior to the date the payment is scheduled to commence, and

(iii) payment is deferred for a period of not less than 5 years from the date payment would otherwise have been made (unless payment is being made for disability or death) and such request is permitted under Section 409A of the Code. Any election to change the form of payment will be deemed to have been made as of the following January 1. Except as required under Section 409A of the Code, a Participant is not limited as to the number of changes that can be made under this paragraph.

IX.

Section 5.02(b)(1) of Article IV of the Plan is hereby amended to read as follows:

            (b)      (1)     Notwithstanding the provisions of subsection (a) above, the Administrator may make payments to an alternate payee in accordance with the terms of the domestic relations order (as defined in Code Section 414(p)(1)(B)). Payments to such alternate payee shall be paid in accordance with the terms of the domestic relations order and section 4.01 (i), provided, however, that any payments will be made in the form of a lump sum.

IN WITNESS WHEREOF, this Fourth Amendment has been executed and is effective as of the date set forth herein.

SYKES ENTERPRISES, INCORPORATED
By:
Title:	Exec. V.P.
	“COMPANY”

EX-15

Exhibit 15

August 9, 2017

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, 2017, and 2016, as indicated in our report dated August 9, 2017; 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, 2017, 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 9, 2017

/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 9, 2017

/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, 2017 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 9, 2017	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, 2017 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 9, 2017	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.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 20, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
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		43,009,233

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 301,451	$ 266,675
Receivables, net	332,501	318,558
Prepaid expenses	22,060	21,973
Other current assets	15,939	16,030
Total current assets	671,951	623,236
Property and equipment, net	160,104	156,214
Goodwill, net	266,934	265,404
Intangibles, net	144,751	153,055
Deferred charges and other assets	16,892	38,494
Total assets	1,260,632	1,236,403
Current liabilities:
Accounts payable	25,414	29,163
Accrued employee compensation and benefits	92,075	92,552
Income taxes payable	2,094	4,487
Deferred revenue	40,485	38,736
Other accrued expenses and current liabilities	35,244	37,919
Total current liabilities	195,312	202,857
Deferred grants	3,520	3,761
Long-term debt	267,000	267,000
Long-term income tax liabilities	3,399	19,326
Other long-term liabilities	21,221	18,937
Total liabilities	490,452	511,881
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; 43,009 and 42,895 shares issued, respectively	430	429
Additional paid-in capital	279,523	281,357
Retained earnings	542,184	518,611
Accumulated other comprehensive income (loss)	(49,877)	(67,027)
Treasury stock at cost: 120 and 362 shares, respectively	(2,080)	(8,848)
Total shareholders' equity	770,180	724,522
Total liabilities and shareholders' equity	$ 1,260,632	$ 1,236,403

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
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	43,009,000	42,895,000
Treasury stock, shares	120,000	362,000

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenues	$ 375,438	$ 364,402	$ 759,452	$ 685,148
Operating expenses:
Direct salaries and related costs	248,643	239,442	495,808	444,997
General and administrative	92,246	94,335	184,300	174,845
Depreciation, net	13,820	11,960	27,168	22,744
Amortization of intangibles	5,250	5,263	10,481	8,890
Impairment of long-lived assets	4,189		4,391
Total operating expenses	364,148	351,000	722,148	651,476
Income from operations	11,290	13,402	37,304	33,672
Other income (expense):
Interest income	144	141	299	294
Interest (expense)	(1,865)	(1,581)	(3,564)	(2,389)
Other income (expense), net	831	1,067	1,683	1,620
Total other income (expense), net	(890)	(373)	(1,582)	(475)
Income before income taxes	10,400	13,029	35,722	33,197
Income taxes	1,555	3,891	8,165	10,105
Net income	$ 8,845	$ 9,138	$ 27,557	$ 23,092
Net income per common share:
Basic	$ 0.21	$ 0.22	$ 0.66	$ 0.55
Diluted	$ 0.21	$ 0.22	$ 0.66	$ 0.55
Weighted average common shares outstanding:
Basic	41,854	41,970	41,756	41,838
Diluted	41,934	42,101	41,919	42,101

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 8,845	$ 9,138	$ 27,557	$ 23,092
Other comprehensive income (loss), net of taxes:
Foreign currency translation gain (loss), net of taxes	16,484	(9,599)	20,382	4,300
Unrealized gain (loss) on net investment hedges, net of taxes	(2,936)	1,497	(3,304)	(433)
Unrealized actuarial gain (loss) related to pension liability, net of taxes	(16)	(35)	(39)	(26)
Unrealized gain (loss) on cash flow hedging instruments, net of taxes	(396)	(1,996)	136	434
Unrealized gain (loss) on postretirement obligation, net of taxes	(12)	(14)	(25)	(27)
Other comprehensive income (loss), net of taxes	13,124	(10,147)	17,150	4,248
Comprehensive income (loss)	$ 21,969	$ (1,009)	$ 44,707	$ 27,340

XML

Condensed Consolidated Statements of Changes in Shareholders' Equity - 6 months ended Jun. 30, 2017 - 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, 2016	$ 724,522	$ 429	$ 281,357	$ 518,611	$ (67,027)	$ (8,848)
Beginning Balance, shares at Dec. 31, 2016		42,895
Stock-based compensation expense	4,732		4,732
Issuance of common stock under equity award plans, net of shares withheld for employee taxes	(3,860)	$ 4	(3,604)			(260)
Issuance of common stock under equity award plans, net of shares withheld for employee taxes, shares		364
Retirement of treasury stock		$ (3)	(3,194)	(3,831)		7,028
Retirement of treasury stock, shares		(250)
Comprehensive income (loss)	44,707			27,557	17,150
Ending Balance at Jun. 30, 2017	770,180	$ 430	279,523	542,184	$ (49,877)	$ (2,080)
Ending Balance, shares at Jun. 30, 2017		43,009
Cumulative effect of accounting change | Accounting Standards Update 2016-09 [Member]	$ 79		$ 232	$ (153)

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 27,557	$ 23,092
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	27,423	23,059
Amortization of intangibles	10,481	8,890
Amortization of deferred grants	(374)	(444)
Impairment losses	4,391
Unrealized foreign currency transaction (gains) losses, net	(611)	(2,316)
Stock-based compensation expense	4,732	5,729
Deferred income tax provision (benefit)	9,785	(2,219)
Unrealized (gains) losses on financial instruments, net	42	611
Amortization of deferred loan fees	134	134
Imputed interest expense and fair value adjustments to contingent consideration	(633)	509
Other	144	(166)
Changes in assets and liabilities, net of acquisitions:
Receivables	9,059	(1,581)
Prepaid expenses	78	(2,952)
Other current assets	(1,855)	(2,316)
Deferred charges and other assets	(1,008)	(1,509)
Accounts payable	2,420	(3,145)
Income taxes receivable / payable	(14,086)	273
Accrued employee compensation and benefits	(1,779)	12,896
Other accrued expenses and current liabilities	(2,916)	3,009
Deferred revenue	2,398	3,623
Other long-term liabilities	(3,813)	1,501
Net cash provided by operating activities	71,569	66,678
Cash flows from investing activities:
Capital expenditures	(35,859)	(34,409)
Cash paid for business acquisition, net of cash acquired	(7,500)	(205,324)
Proceeds from sale of property and equipment	25	37
Investment in restricted cash	(33)	(228)
Release of restricted cash	21	77
Net investment hedge settlement		10,339
Purchase of intangible assets	(275)
Net cash (used for) investing activities	(43,621)	(229,508)
Cash flows from financing activities:
Payments of long-term debt		(14,000)
Proceeds from issuance of long-term debt		216,000
Proceeds from grants	107	89
Shares repurchased for tax withholding on equity awards	(3,860)	(4,915)
Payments of contingent consideration related to acquisitions	(4,528)
Net cash provided by (used for) financing activities	(8,281)	197,174
Effects of exchange rates on cash and cash equivalents	15,109	3,512
Net increase in cash and cash equivalents	34,776	37,856
Cash and cash equivalents - beginning	266,675	235,358
Cash and cash equivalents - ending	301,451	273,214
Supplemental disclosures of cash flow information:
Cash paid during period for interest	3,066	1,497
Cash paid during period for income taxes	17,032	11,229
Non-cash transactions:
Property and equipment additions in accounts payable	3,742	6,990
Unrealized gain (loss) on postretirement obligation in accumulated other comprehensive income (loss)	(25)	(27)
Shares repurchased for tax withholding on equity awards included in current liabilities	$ 119	$ 51

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Overview and Basis of Presentation

6 Months Ended

Jun. 30, 2017

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”) is a global business processing outsourcing leader in providing comprehensive inbound customer engagement solutions and services to Global 2000 companies, primarily in the communications, financial services, healthcare, technology, transportation and leisure, retail and other industries. SYKES’ differentiated end-to-end solutions and service platform effectively engages consumers at every touch point in their customer lifecycle, starting from digital marketing and acquisition to customer support, up-sell/cross-sell and retention. The Company serves its 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 regions primarily provide customer engagement services (with an emphasis on inbound technical support, digital marketing and demand generation, and customer service), which includes customer assistance, healthcare and roadside assistance, technical support, and product and service sales to its clients’ customers. These services are delivered through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. The Company also provides various enterprise support services in the United States that include services for its clients’ 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. SYKES has developed an extensive global reach with customer engagement centers across six continents, including North America, South America, Europe, Asia, Australia and Africa. The Company delivers cost-effective solutions that enhance the customer service experience, promote stronger brand loyalty, and bring out high levels of performance and profitability.

Acquisitions

On May 31, 2017, the Company completed the acquisition of certain assets of a Global 2000 telecommunications services provider, pursuant to a definitive Asset Purchase Agreement (the “Purchase Agreement”) entered into on April 24, 2017 (the “Telecommunications Asset acquisition”). The Company has reflected the Telecommunications Asset acquisition’s results in the Condensed Consolidated Financial Statements since May 31, 2017. See Note 2, Acquisitions, for additional information on the acquisition.

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 Clearlink’s results in the Condensed Consolidated Financial Statements since April 1, 2016. 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, 2017 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2017. 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, 2016, as filed with the Securities and Exchange Commission (“SEC”) on March 1, 2017.

Principles of Consolidation — The condensed consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. All 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, 2017 and December 31, 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 Sheets. Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Income Statements for the three months ended June 30, 2017 and 2016 were $8.6 million and $8.0 million, respectively, and $18.4 million and $8.0 million for the six months ended June 30, 2017 and 2016, respectively.

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. In 2016, the FASB issued additional ASUs that are part of the overall new revenue guidance including: ASU 2016-08, Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing, 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”) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients.

The Company is continuing to evaluate the impact of ASU 2014-09 and the related ASUs on its financial condition, results of operations and cash flows. The Company anticipates that it will apply the modified retrospective adoption alternative for these amendments, which will result in a cumulative effect adjustment to retained earnings as of January 1, 2018. The adoption of these amendments will require expanded qualitative and quantitative disclosures about the Company’s contracts with its customers. The Company has established an implementation team tasked with evaluating provisions within its contracts as well as reviewing accounting policies and internal controls. Based on the preliminary results of its evaluation, the Company does not expect the adoption of these ASUs on January 1, 2018 to have a material impact on the timing of recognition of revenue; however, the Company is still assessing the requirement to estimate variable consideration, such as performance-related bonus and penalty provisions. The Company expects to complete its assessment by the end of the third quarter of 2017.

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 Accounting Standards Codification (“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 for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and there are certain optional practical expedients that an entity may elect to apply. The Company expects the adoption of ASU 2016-02 to result in a material increase in the assets and liabilities on the consolidated balance sheets due to the amount of the Company’s lease commitments. However, the amendments will likely have an insignificant impact on our consolidated statements of income. The Company is continuing to evaluate the magnitude of the impact and related disclosures, as well as the timing and method of adoption, with respect to the optional practical expedients.

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.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). These amendments clarify the presentation of cash receipts and payments in eight specific situations. These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments will be applied using a retrospective transition method to each period presented. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to materially impact its financial condition, results of operations and cash flows.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”). These amendments require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. These amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. These amendments will be applied using a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued. The Company does not expect the adoption of ASU 2016-16 to materially impact its financial condition, results of operations and cash flows.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cash (A Consensus of the FASB Emerging Issues Task Force (“ASU 2016-18”). These amendments clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, requiring entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments will be applied using a retrospective transition method to each period presented. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-18 to materially impact its financial condition, results of operations and cash flows.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business (“ASU 2017-01”). These amendments clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. These amendments will be applied prospectively. Early adoption is permitted in certain circumstances. The Company does not expect the adoption of ASU 2017-01 to materially impact its financial condition, results of operations and cash flows.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). These amendments simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. These amendments are effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. These amendments will be applied on a prospective basis, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to materially impact its financial condition, results of operations and cash flows.

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). These amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component outside of a subtotal of income from operations. If a separate line item is not used, the line items used in the income statement to present other components of net benefit cost must be disclosed. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period for which financial statements, interim or annual, have not been issued or made available for issuance. These amendments will be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The amendments allow a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The Company does not expect the adoption of ASU 2017-07 to materially impact its financial condition, results of operations and cash flows.

New Accounting Standards Recently Adopted

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) – Scope of Modification Accounting (“ASU 2017-09”). These amendments provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. These amendments should be applied prospectively to changes in terms and conditions of awards occurring on or after the adoption date. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The early adoption of ASU 2017-09 on June 30, 2017 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

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. The adoption of ASU 2016-05 on January 1, 2017 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

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. The adoption of ASU 2016-09 on January 1, 2017 resulted in stock-based compensation excess tax benefits or deficiencies reflected in the consolidated statements of operations on a prospective basis as a component of the provision for income taxes. Prior to the adoption, these benefits or deficiencies were recognized in equity. Additionally, the Company’s consolidated statements of cash flows now include excess tax benefits as an operating activity, with prior periods adjusted accordingly. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented on the Company’s consolidated cash flows statements since such cash flows have historically been presented as a financing activity. Finally, the Company has elected to account for forfeitures as they occur, rather than estimating expected forfeitures.

As a result of the adoption of ASU 2016-09, the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2016 was adjusted as follows: a $2.1 million increase to net cash provided by operating activities and a $2.1 million decrease to net cash provided by financing activities. Additionally, the Condensed Consolidated Statement of Changes in Shareholders’ Equity for the six months ended June 30, 2017 reflects a cumulative effect of accounting change of $0.2 million to “Additional paid-in capital” and $(0.2) million to “Retained earnings” related to the change in accounting for forfeitures.

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Acquisitions

6 Months Ended

Jun. 30, 2017

Business Combinations [Abstract]

Acquisitions

Note 2. Acquisitions

Telecommunications Asset Acquisition

On April 24, 2017, the Company entered into a Purchase Agreement to acquire certain assets from a Global 2000 telecommunications services provider. The aggregate purchase price of $7.5 million was paid on May 31, 2017, using cash on hand, resulting in $6.0 million of property and equipment and $1.5 million of customer relationship intangibles. The Purchase Agreement contains customary representations and warranties, indemnification obligations and covenants. The Telecommunications Asset acquisition was completed to strengthen and create new partnerships for the Company and expand its geographic footprint in North America. The results of the Telecommunications Assets’ operations have been included in the Company’s consolidated financial statements since its acquisition on May 31, 2017.

The Company accounted for the Telecommunications Asset acquisition in accordance with ASC 805, Business Combinations, whereby the fair value of the purchase price was allocated to the tangible and identifiable intangible assets acquired based on their estimated fair values as of the closing date. The Company completed its analysis of the purchase price allocation during the second quarter of 2017.

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 platform 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 (in thousands):

	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 escrow was released pursuant to the terms of the escrow agreement, but the Company has subsequently asserted a claim of approximately $0.4 million against the Clearlink members, which claim remains under negotiation between the parties.

The following table summarizes the final purchase price allocation of the fair values of the assets acquired and liabilities assumed, all included in the Americas segment (in thousands):

	Amount
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		70,563
Intangibles		121,400
Deferred charges and other assets		229
Accounts payable		(3,564	)
Accrued employee compensation and benefits		(1,610	)
Income taxes payable		(340	)
Deferred revenue		(4,620	)
Other accrued expenses and current liabilities		(6,324	)
Total current liabilities		(16,458	)
Other long-term liabilities		(1,633	)
	$	207,908
(1) The fair value equals the gross contractual value of the receivables.

The Company accounted for the Clearlink acquisition in accordance with ASC 805, Business Combinations (“ASC 805”), 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. The Company completed its analysis of the purchase price allocation during the fourth quarter of 2016 and the resulting adjustments were recorded in accordance with ASU 2015-16, Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments.

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):

			Weighted Average
			Amortization Period
	Amount Assigned		(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. 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 (in thousands):

	Three Months Ended June 30, 2016		Six Months Ended   June 30, 2016
Revenues	$	364,403	$	718,977
Net income	$	10,975	$	25,895
Net income per common share:
Basic	$	0.26	$	0.62
Diluted	$	0.26	$	0.62

These amounts were 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, together with the consequential tax effects. In addition, these amounts exclude costs incurred which were directly attributable to the acquisition, and which did 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.

Merger and integration costs associated with Clearlink included in “General and administrative” costs in the accompanying Condensed Consolidated Statement of Operations were as follows (none in 2017) (in thousands):

	Three Months Ended		Six Months Ended
	June 30, 2016		June 30, 2016
Americas	$	29	$	29
Other		2,934		4,376
	$	2,963	$	4,405

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Costs Associated with Exit or Disposal Activities

6 Months Ended

Jun. 30, 2017

Restructuring and Related Activities [Abstract]

Costs Associated with Exit or Disposal Activities

Note 3. Costs Associated with Exit or Disposal Activities

During 2011 and 2010, the Company announced several initiatives to streamline excess capacity through targeted seat reductions (the “Exit Plans”) in an on-going effort to manage and optimize capacity utilization. These Exit Plans included, but were not limited to, closing customer engagement centers in the Philippines, the United Kingdom, Ireland and South Africa and consolidating leased space in various locations in the U.S. and the Netherlands. These Exit Plans impacted approximately 800 employees.

The Company paid $16.2 million in cash through December 31, 2016 under these Exit Plans for lease obligations and facility exit costs, severance and related costs and legal-related costs. As of December 31, 2016, there were no remaining outstanding liabilities related to the Exit Plans.

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 (none in 2017) (in thousands):

	Three Months Ended			Six Months Ended
	June 30, 2016			June 30, 2016
Beginning accrual	$	527		$	733
Cash payments (1)		(208	)		(414	)
Ending accrual	$	319		$	319
(1) Related to lease obligations and facility exit costs.

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Fair Value

6 Months Ended

Jun. 30, 2017

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 exchange 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.

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, the 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.

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 acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”) on July 2, 2015 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 as of June 30, 2017 (in thousands):

				Fair Value Measurements at June 30, 2017 Using:
				Quoted Prices		Significant
				in Active		Other		Significant
				Markets For		Observable		Unobservable
		Balance at		Identical Assets		Inputs		Inputs
		June 30, 2017		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	356	$	-	$	356	$	-
Embedded derivatives	(1)		84		-		-		84
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		7,446		7,446		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		3,283		3,283		-		-
		$	11,169	$	10,729	$	356	$	84
Liabilities:
Long-term debt	(3)	$	267,000	$	-	$	267,000	$	-
Foreign currency forward and option contracts	(1)		4,468		-		4,468		-
Embedded derivatives	(1)		255		-		-		255
Contingent consideration	(4)		1,127		-		-		1,127
		$	272,850	$	-	$	271,468	$	1,382
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 as of December 31, 2016 (in thousands):
				Fair Value Measurements at December 31, 2016 Using:
				Quoted Prices		Significant
				in Active		Other		Significant
				Markets For		Observable		Unobservable
		Balance at		Identical Assets		Inputs		Inputs
		December 31, 2016		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	3,921	$	-	$	3,921	$	-
Embedded derivatives	(1)		12		-		-		12
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		7,470		7,470		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		1,944		1,944		-		-
		$	13,347	$	9,414	$	3,921	$	12
Liabilities:
Long-term debt	(3)	$	267,000	$	-	$	267,000	$	-
Foreign currency forward and option contracts	(1)		1,912		-		1,912		-
Embedded derivatives	(1)		567		-		-		567
Contingent consideration	(4)		6,100		-		-		6,100
		$	275,579	$	-	$	268,912	$	6,667

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

⁽⁴⁾ Included in “Other accrued expenses and current liabilities” 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):

	Fair Value
Balance at January 1, 2016	$	-
Gain (loss) recognized in “Other income (expense)” (1)		(714	)
Effect of foreign currency		159
Balance at December 31, 2016	$	(555	)
Gain (loss) recognized in “Other income (expense)” (1)		315
Effect of foreign currency		69
Balance at June 30, 2017	$	(171	)
Unrealized gain (loss) for the three months ended June 30, 2016	$	(12	)
Unrealized gain (loss) for the six months ended June 30, 2016	$	43
Unrealized gain (loss) for the three months ended June 30, 2017	$	200
Unrealized gain (loss) for the six months ended June 30, 2017	$	384
(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, 2016	$	6,280
Acquisition (1)		2,779
Payments		(1,396	)
Imputed interest		754
Fair value (gain) loss adjustments		(2,250	)
Effect of foreign currency		(67	)
Balance at December 31, 2016		6,100
Payments		(4,528	)
Imputed interest		68
Fair value (gain) loss adjustments		(701	)
Effect of foreign currency		188
Balance at June 30, 2017	$	1,127
(1) Liability acquired as part of the Clearlink acquisition on April 1, 2016. See Note 2, Acquisitions, for further information.

The Company recorded a fair value gain of $2.6 million to the Qelp contingent consideration in “General and administrative” during the year ended December 31, 2016 due to the execution of an addendum to the Qelp purchase agreement, subject to which the Company agreed to pay the sellers EUR 4.0 million by June 30, 2017. The Company paid $4.4 million in May 2017 to settle the outstanding contingent consideration obligation.

The Company recorded a fair value gain of $0.3 million in “General and administrative” during the three and six months ended June 30, 2017 to the Clearlink contingent consideration due to changes in the probability of achievement of certain revenue targets. The Company recorded a fair value gain of $0.4 million in “General and administrative” during the six months ended June 30, 2017 to the Clearlink contingent consideration upon settlement of one of the contingent consideration liabilities for $0.1 million. The Company recorded a fair value loss of $0.3 million in “General and administrative” during the year ended December 31, 2016 to the Clearlink contingent consideration due to changes in the probability of achievement of certain revenue targets.

The Company accretes interest expense each period using the effective interest method until the contingent consideration reaches the estimated remaining future value of $1.1 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, 2017 and December 31, 2016.

The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) subject to the requirements of ASC 820 (in thousands) (none in 2016):

	Total Impairment (Loss)
	Three Months Ended			Six Months Ended
	June 30, 2017			June 30, 2017
Americas:
Property and equipment, net	$	(4,189	)	$	(4,391	)

In connection with the closure of an under-utilized customer contact management center in the U.S., the Company recorded an impairment charge of $4.2 million during the three and six months ended June 30, 2017 related to leasehold improvements which were not recoverable and equipment, furniture and fixtures that could not be redeployed to other locations.

During the six months ended June 30, 2017, the Company recorded an impairment charge of $0.2 million related to the write-down of a vacant and unused parcel of land in the U.S. to its estimated fair value.

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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2017

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, 2017 (in thousands):

								Weighted Average
			Accumulated					Amortization
	Gross Intangibles		Amortization			Net Intangibles		Period (years)
Intangible assets subject to amortization:
Customer relationships	$	169,278	$	(85,252	)	$	84,026		10
Trade names and trademarks		14,103		(7,938	)		6,165		7
Non-compete agreements		2,996		(1,946	)		1,050		2
Content library		515		(515	)		-		2
Proprietary software		1,550		(1,025	)		525		3
Favorable lease agreement		449		(449	)		-		2
Intangible assets not subject to amortization:
Domain names		52,985		-			52,985		N/A
	$	241,876	$	(97,125	)	$	144,751		6

The following table presents the Company’s purchased intangible assets as of December 31, 2016 (in thousands):

	Gross Intangibles		Accumulated       Amortization			Net Intangibles		Weighted Average Amortization Period (years)
Intangible assets subject to amortization:
Customer relationships	$	166,634	$	(75,364	)	$	91,270		10
Trade names and trademarks		14,095		(7,083	)		7,012		7
Non-compete agreements		2,993		(1,643	)		1,350		2
Content library		475		(357	)		118		2
Proprietary software		1,550		(955	)		595		3
Favorable lease agreement		449		(449	)		-		2
Intangible assets not subject to amortization:
Domain names		52,710		-			52,710		N/A
	$	238,906	$	(85,851	)	$	153,055		6

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, 2017, is as follows (in thousands):

Years Ending December 31,	Amount
2017 (remaining six months)	$	10,567
2018		14,868
2019		13,815
2020		11,155
2021		6,664
2022		5,709
2023 and thereafter		28,988

Goodwill

Changes in goodwill for the six months ended June 30, 2017 consist of the following (in thousands):

					Effect of Foreign
	January 1, 2017		Acquisition		Currency		June 30, 2017
Americas	$	255,842	$	-	$	811	$	256,653
EMEA		9,562		-		719		10,281
	$	265,404	$	-	$	1,530	$	266,934
Changes in goodwill for the year ended December 31, 2016 consist of the following (in thousands):
					Effect of Foreign
	January 1, 2016		Acquisition (1)		Currency		December 31, 2016
Americas	$	186,049	$	70,563	$	(770)	$	255,842
EMEA		9,684		-		(122)		9,562
	$	195,733	$	70,563	$	(892)	$	265,404

⁽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, 2016. 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, 2016, the Company concluded that goodwill was not impaired for all six of its reporting units with goodwill, based on generally accepted valuation techniques and the significant assumptions outlined above. While the fair values of four of the six reporting units were substantially in excess of their carrying value, the Qelp reporting unit’s fair value exceeded its carrying value (although not substantially) and the newly acquired Clearlink reporting unit’s fair value approximated its carrying value due to the proximity to the acquisition date of April 1, 2016.

The Qelp and Clearlink reporting units are at risk of future impairment if projected operating results are not met or other inputs into the fair value measurement change. However, as of June 30, 2017, there were no indicators of impairment related to Qelp’s $10.3 million of goodwill or Clearlink’s $70.6 million of goodwill.

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Financial Derivatives

6 Months Ended

Jun. 30, 2017

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, 2017		December 31, 2016
Deferred gains (losses) in AOCI	$	(2,126)	$	(2,295)
Tax on deferred gains (losses) in AOCI		37		69
Deferred gains (losses) in AOCI, net of taxes	$	(2,089)	$	(2,226)
Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months	$	(2,126)

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, 2017				As of December 31, 2016
	Notional				Notional
	Amount in		Settle Through		Amount in		Settle Through
Contract Type	USD		Date		USD		Date
Cash flow hedges:
Options:
Philippine Pesos	$	32,000		May 2018	$	51,000		December 2017
Forwards:
Philippine Pesos		3,000		June 2018		-		-
Costa Rican Colones		58,750		June 2018		45,500		December 2017
Hungarian Forints		1,370		December 2017		-		-
Romanian Leis		3,850		December 2017		-		-
Net investment hedges:
Forwards:
Euros		76,933		September 2017		76,933		September 2017
Non-designated hedges:
Forwards		38,179		September 2017		55,614		March 2017
Embedded derivatives		13,808		April 2030		13,234		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 $0.4 million and $3.9 million as of June 30, 2017 and December 31, 2016, 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 $3.6 million as of December 31, 2016 (none at June 30, 2017) and liability positions of $4.1 million and $1.6 million as of June 30, 2017 and December 31, 2016, 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, 2017		December 31, 2016
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (1)	$	48	$	-
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (1)		242		3,230
		290		3,230
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (1)		66		691
Embedded derivatives (1)		17		8
Embedded derivatives (2)		67		4
Total derivative assets	$	440	$	3,933
	Derivative Liabilities
	June 30, 2017		December 31, 2016
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (3)	$	1,861	$	1,806
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (3)		2,384		-
		4,245		1,806
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (3)		223		106
Embedded derivatives (3)		166		174
Embedded derivatives (4)		89		393
Total derivative liabilities	$	4,723	$	2,479

⁽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, 2017 and 2016 (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,
	2017		2016			2017			2016		2017		2016
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	(1,232)	$	(2,072	)	$	(820	)	$	4	$	-	$	-
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		(4,774)		2,414			-			-		-		-
	$	(6,006)	$	342		$	(820	)	$	4	$	-	$	-

	Gain (Loss) Recognized in “Other income (expense)” on Derivatives
	June 30,
	2017		2016
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	$	921	$	575
Embedded derivatives		176		10
	$	1,097	$	585

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, 2017 and 2016 (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,
	2017			2016			2017			2016			2017		2016
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	(1,466	)	$	431		$	(1,580	)	$	(50	)	$	-	$	-
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		(5,373	)		(698	)		-			-			-		-
	$	(6,839	)	$	(267	)	$	(1,580	)	$	(50	)	$	-	$	-

	Gain (Loss) Recognized in “Other income (expense)” on Derivatives
	June 30,
	2017		2016
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	$	82	$	1,370
Embedded derivatives		315		(46	)
	$	397	$	1,324

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Investments Held in Rabbi Trust

6 Months Ended

Jun. 30, 2017

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, 2017				December 31, 2016
	Cost		Fair Value		Cost		Fair Value
Mutual funds	$	7,871	$	10,729	$	7,257	$	9,414

The mutual funds held in rabbi trust were 69% equity-based and 31% debt-based as of June 30, 2017. Net investment income (losses), included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016
Gross realized gains from sale of trading securities	$	151		$	-	$	151		$	-
Gross realized (losses) from sale of trading securities		(2	)		-		(2	)		-
Dividend and interest income		25			10		39			19
Net unrealized holding gains (losses)		149			134		542			154
Net investment income (losses)	$	323		$	144	$	730		$	173

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Deferred Revenue

6 Months Ended

Jun. 30, 2017

Revenue Recognition and Deferred Revenue [Abstract]

Deferred Revenue

Note 8. Deferred Revenue

Deferred revenue consists of the following (in thousands):

	June 30, 2017		December 31, 2016
Future service	$	28,860	$	27,116
Estimated potential penalties and holdbacks		6,206		6,593
Estimated chargebacks		5,419		5,027
	$	40,485	$	38,736

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Deferred Grants

6 Months Ended

Jun. 30, 2017

Text Block [Abstract]

Deferred Grants

Note 9. Deferred Grants

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

	June 30, 2017			December 31, 2016
Property grants	$	3,098		$	3,353
Lease grants		532			502
Employment grants		43			67
Total deferred grants		3,673			3,922
Less: Lease grants - short-term (1)		(110	)		(94)
Less: Employment grants - short-term (1)		(43	)		(67)
Total long-term deferred grants	$	3,520		$	3,761

⁽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, 2017

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, 2017		December 31, 2016
Revolving credit facility	$	267,000	$	267,000
Less: Current portion		-		-
Total long-term debt	$	267,000	$	267,000

On April 1, 2016, the Company borrowed $216.0 million under its 2015 Credit Agreement in connection with the acquisition of Clearlink.

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 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,
	2017		2016		2017		2016
Average daily utilization	$	267,000	$	278,769	$	267,000	$	174,385
Interest expense, including commitment fee (1)	$	1,600	$	1,079	$	3,043	$	1,454
Weighted average interest rate (2)		2.4%		1.6%		2.3%		1.9%

⁽¹⁾ Excludes the amortization of deferred loan fees.    

⁽²⁾ Includes the commitment fee.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2017

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, 2016	$	(58,601	)	$	4,170		$	1,029		$	(527	)	$	267		$	(53,662	)
Pre-tax amount		(13,832	)		3,409			212			(2,313	)		(9	)		(12,533	)
Tax (provision) benefit		-			(1,313	)		(8	)		72			-			(1,249	)
Reclassification of (gain) loss to net income		-			-			(52	)		527			(58	)		417
Foreign currency translation		40			-			(56	)		16			-			-
Balance at December 31, 2016		(72,393	)		6,266			1,125			(2,225	)		200			(67,027	)
Pre-tax amount		20,416			(5,373	)		-			(1,466	)		-			13,577
Tax (provision) benefit		-			2,069			-			28			-			2,097
Reclassification of (gain) loss to net income		-			-			(21	)		1,522			(25	)		1,476
Foreign currency translation		(34	)		-			(18	)		52			-			-
Balance at June 30, 2017	$	(52,011	)	$	2,962		$	1,086		$	(2,089	)	$	175		$	(49,877	)
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
	2017			2016			2017			2016			Location
Actuarial Gain (Loss) Related to Pension Liability: (1)
Pre-tax amount	$	11		$	10		$	21		$	22			Direct salaries and related costs
Tax (provision) benefit		-			-			-			-			Income taxes
Reclassification to net income		11			10			21			22
Gain (Loss) on Cash Flow Hedging Instruments: (2)
Pre-tax amount		(820	)		4			(1,580	)		(50	)		Revenues
Tax (provision) benefit		17			3			58			22			Income taxes
Reclassification to net income		(803	)		7			(1,522	)		(28	)
Gain (Loss) on Post Retirement Obligation: (1)
Pre-tax amount		13			14			25			27			General and administrative
Tax (provision) benefit		-			-			-			-			Income taxes
Reclassification to net income		13			14			25			27
Total reclassification of gain (loss) to net income	$	(779	)	$	31		$	(1,476	)	$	21

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

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

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, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Note 12. Income Taxes

The Company’s effective tax rate was 15.0% and 29.9% for the three months ended June 30, 2017 and 2016, respectively. The decrease in the effective tax rates is primarily due to the recognition of a $1.2 million previously unrecognized tax benefit arising from the effective settlement of the Canadian Revenue Agency audit. The decrease in the effective tax rate was also affected by several additional 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 as compared to the U.S. statutory federal income tax rate of 35.0% was primarily due to the aforementioned factors as well as the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in unrecognized tax benefits, 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 22.9% and 30.4% for the six months ended June 30, 2017 and 2016, respectively. The decrease in the effective tax rates is primarily due to the recognition of a $1.2 million previously unrecognized tax benefit arising from the effective settlement of the Canadian Revenue Agency audit and the recognition of a $0.9 million tax benefit resulting from the adoption of ASU 2016-09 on January 1, 2017. The decrease in the effective tax rate was also affected by several additional 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 as compared to the U.S. statutory federal income tax rate of 35.0% was primarily due to the aforementioned factors as well as the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions, changes in unrecognized tax benefits, 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 (“ASC 740”). 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 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, was $13.8 million as of December 31, 2016 (none at June 30, 2017) and was included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheet. As of June 30, 2017, the Company determined that all material aspects of the Canadian audit were effectively settled pursuant to ASC 740. As a result, the Company recognized a net income tax benefit of $1.2 million and the deposits were applied against the anticipated liability.

With the effective settlement of the Canadian audit, the Company has no significant tax jurisdictions under audit; however, the Company is currently under audit in several tax jurisdictions. The Company believes it is adequately reserved for the remaining audits and their resolution is not expected to have a material impact on its financial condition and results of operations.

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Earnings Per Share

6 Months Ended

Jun. 30, 2017

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,
	2017		2016		2017		2016
Basic:
Weighted average common shares outstanding		41,854		41,970		41,756		41,838
Diluted:
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust		80		131		163		263
Total weighted average diluted shares outstanding		41,934		42,101		41,919		42,101
Anti-dilutive shares excluded from the diluted earnings per share calculation		46		21		16		21

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 5.3 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.

There were no shares repurchased under the Company’s share repurchase programs during the three and six months ended June 30, 2017 and 2016.

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Commitments and Loss Contingency

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Loss Contingency

Note 14. Commitments and Loss Contingency

Commitments

During the six months ended June 30, 2017, 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, 2017, including the impact of the leases assumed in connection with the Telecommunications Asset acquisition (in thousands):

	Amount
2017 (remaining six months)	$	2,780
2018		7,272
2019		6,822
2020		7,506
2021		7,610
2022		6,926
2023 and thereafter		18,407
Total minimum payments required	$	57,323

During the six months ended June 30, 2017, 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, 2017 (in thousands):

	Amount
2017 (remaining six months)	$	5,560
2018		5,881
2019		5,176
2020		619
2021		-
2022		-
2023 and thereafter		-
Total minimum payments required	$	17,236

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. On September 26, 2016, the Company entered into an addendum to the Qelp purchase agreement with the sellers to settle the outstanding contingent consideration for EUR 4.0 million to be paid by June 30, 2017. The Company paid $4.4 million in May 2017 to settle the outstanding contingent consideration obligation.

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. As of June 30, 2017, the fair value of the remaining contingent consideration was $1.1 million. The estimated future value of the contingent consideration is $1.1 million and is expected to be paid on varying dates through October 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, 2017

Retirement Benefits [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,
	2017			2016			2017			2016
Service cost	$	128		$	120		$	253		$	238
Interest cost		49			45			98			89
Recognized actuarial (gains)		(11	)		(10	)		(21	)		(22	)
Net periodic benefit cost	$	166		$	155		$	330		$	305

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,
	2017		2016		2017		2016
401(k) plan contributions	$	309	$	334	$	620	$	619

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, 2017		December 31, 2016
Postretirement benefit obligation	$	21	$	27
Unrealized gains (losses) in AOCI (1)	$	175	$	200
(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, 2017

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,
	2017			2016			2017			2016
Stock-based compensation (expense) (1)	$	(2,261	)	$	(3,547	)	$	(4,732	)	$	(5,729	)
Income tax benefit (2)		871			1,348			1,822			2,177
Excess tax benefit (deficiency) from stock-based compensation (3)		-			149			-			2,060

⁽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 Statement of Changes in Shareholders’ Equity.

There were no capitalized stock-based compensation costs as of June 30, 2017 and December 31, 2016.

Beginning January 1, 2017, as a result of the adoption of ASU 2016-09, the Company began accounting for forfeitures as they occur, rather than estimating expected forfeitures. The net cumulative effect of this change was recognized as a $0.2 million reduction to retained earnings as of January 1, 2017. Additionally, excess tax benefits (deficiencies) from stock compensation are included in “Income taxes” in the accompanying Condensed Consolidated Statements of Income subsequent to the adoption of ASU 2016-09.

2011 Equity Incentive Plan — The Company’s Board of Directors (the “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 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,
	2017		2016
Expected volatility		19.3%		25.3%
Weighted-average volatility		19.3%		25.3%
Expected dividend rate		0.0%		0.0%
Expected term (in years)		5.0		5.0
Risk-free rate		1.9%		1.5%

The following table summarizes SARs activity as of June 30, 2017 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, 2017		633		$	-
Granted		396		$	-
Exercised		(196	)	$	-
Forfeited or expired		-		$	-
Outstanding at June 30, 2017		833		$	-		8.9	$	4,214
Vested or expected to vest at June 30, 2017		833		$	-		8.9	$	4,214
Exercisable at June 30, 2017		163		$	-		7.2	$	1,304

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

	Six Months Ended June 30,
	2017		2016
Number of SARs granted		396		323
Weighted average grant-date fair value per SAR	$	6.24	$	7.68
Intrinsic value of SARs exercised	$	1,678	$	1,691
Fair value of SARs vested	$	1,846	$	1,520

The following table summarizes nonvested SARs activity as of June 30, 2017 and for the six months then ended:

Nonvested Stock Appreciation Rights	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		515		$	7.76
Granted		396		$	6.24
Vested		(241	)	$	7.69
Forfeited or expired		-		$	-
Nonvested at June 30, 2017		670		$	6.88

As of June 30, 2017, there was $4.0 million of total unrecognized compensation cost, net of actual 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 actual 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, 2017 and for the six months then ended:

Nonvested Restricted Shares and RSUs	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		1,136		$	25.47
Granted		480		$	29.42
Vested		(328	)	$	20.95
Forfeited or expired		(63	)	$	20.71
Nonvested at June 30, 2017		1,225		$	28.48

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,
	2017		2016
Number of restricted shares/RSUs granted		480		451
Weighted average grant-date fair value per restricted share/RSU	$	29.42	$	30.32
Fair value of restricted shares/RSUs vested	$	6,868	$	6,785

As of June 30, 2017, there was $27.0 million of total unrecognized compensation cost, net of actual 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 2.0 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 shareholders’ 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 shareholders’ 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.

At the Board’s regularly scheduled meeting on December 6, 2016, upon the recommendation of the Compensation Committee, the Board determined that the amount of the cash compensation payable to non-employee directors beginning on the date of the 2017 annual shareholders’ meeting would be increased by $15,000 per year to a total of $70,000.

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. Directors who are executive officers of the Company receive no compensation for service as members of either the Board of Directors or any committees of the Board.

The following table summarizes nonvested common stock share award activity as of June 30, 2017 and for the six months then ended:

Nonvested Common Stock Share Awards	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		10		$	28.69
Granted		24		$	32.93
Vested		(14	)	$	30.41
Forfeited or expired		-		$	-
Nonvested at June 30, 2017		20		$	32.54

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,
	2017		2016
Number of share awards granted		24		32
Weighted average grant-date fair value per share award	$	32.93	$	29.04
Fair value of share awards vested	$	430	$	410

As of June 30, 2017, there was $0.6 million of total unrecognized compensation cost, net of actual 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 less than one year.

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 December 9, 2015, effective as of January 1, 2016, and was subsequently amended on May 18, 2016, effective as of June 30, 2016, August 17, 2016, effective as of January 1, 2017 and May 25, 2017, effective as of July 1, 2017. Eligibility is limited to a select group of key management and employees who are expected to receive an annualized base salary (which will not take into account bonuses or commissions) that exceeds the amount taken into account for purposes of determining highly compensated employees under Section 414(q) of the Internal Revenue Code of 1986 based on the current year’s base salary and applicable dollar amounts. The Deferred Compensation Plan provides participants with the ability to defer between 1% and 80% of their compensation (between 1% and 100% prior to June 30, 2016, the effective date of the first amendment) 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 participants on a quarterly basis up to a total of $12,000 per year for the president, chief executive officer and executive vice presidents, $7,500 per year for senior vice presidents, global vice presidents and vice presidents, and, effective January 1, 2017, $5,000 per year for all other participants (there was no match for other participants prior to January 1, 2017, the effective date of the second amendment). Matching contributions and the associated earnings vest over a seven-year service period. Vesting will be accelerated in the event of the participant’s death or disability, a change in control or retirement (defined as separate from service after age 65). In the event of a distribution of benefits as a result of a change in control of the Company, the Company will increase the benefit by an amount sufficient to offset the income tax obligations created by the distribution of benefits. 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, 2017 and December 31, 2016, liabilities of $10.8 million and $9.4 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 $2.1 million and $1.8 million as of June 30, 2017 and December 31, 2016, 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, 2017 and for the six months then ended:

Nonvested Common Stock	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		2		$	22.77
Granted		10		$	30.66
Vested		(8	)	$	30.62
Forfeited or expired		-		$	-
Nonvested at June 30, 2017		4		$	27.08

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,
	2017		2016
Number of shares of common stock granted		10		6
Weighted average grant-date fair value per common stock	$	30.66	$	29.76
Fair value of common stock vested	$	240	$	183
Cash used to settle the obligation	$	422	$	359

As of June 30, 2017, there was $0.1 million of total unrecognized compensation cost, net of actual 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 3.7 years.

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Segments and Geographic Information

6 Months Ended

Jun. 30, 2017

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 engagement solutions (with an emphasis on inbound technical support, digital support and demand generation, and customer service) and technical staffing and (2) EMEA, which includes Europe, the Middle East and Africa, and provides outsourced customer engagement 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 engagement needs.

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

	Americas		EMEA		Other (1)			Consolidated
Three Months Ended June 30, 2017:
Revenues	$	314,871	$	60,540	$	27		$	375,438
Percentage of revenues		83.9%		16.1%		0.0%			100.0%
Depreciation, net	$	11,842	$	1,254	$	724		$	13,820
Amortization of intangibles	$	4,989	$	261	$	-		$	5,250
Income (loss) from operations	$	26,089	$	2,163	$	(16,962	)	$	11,290
Total other income (expense), net						(890	)		(890	)
Income taxes						(1,555	)		(1,555	)
Net income								$	8,845
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
Total other income (expense), net						(373	)		(373	)
Income taxes						(3,891	)		(3,891	)
Net income								$	9,138
Six Months Ended June 30, 2017:
Revenues	$	635,802	$	123,607	$	43		$	759,452
Percentage of revenues		83.7%		16.3%		0.0%			100.0%
Depreciation, net	$	23,310	$	2,440	$	1,418		$	27,168
Amortization of intangibles	$	9,967	$	514	$	-		$	10,481
Income (loss) from operations	$	64,022	$	7,743	$	(34,461	)	$	37,304
Total other income (expense), net						(1,582	)		(1,582	)
Income taxes						(8,165	)		(8,165	)
Net income								$	27,557
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
Total other income (expense), net						(475	)		(475	)
Income taxes						(10,105	)		(10,105	)
Net income								$	23,092

⁽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, 2017 and 2016. Inter-segment revenues are not material to the Americas and EMEA segment results.

The Company’s reportable segments are evaluated regularly by its chief operating decision maker to decide how to allocate resources and assess performance. The chief operating decision maker evaluates performance based upon stand-alone segment revenue and income (loss) from operations. Because assets by segment are not reported to or used by the Company’s chief operating decision maker to allocate resources, or to assess performance, total assets by segment are not disclosed.

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Other Income (Expense)

6 Months Ended

Jun. 30, 2017

Other Income and Expenses [Abstract]

Other Income (Expense)

Note 18. Other Income (Expense)

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017		2016
Foreign currency transaction gains (losses)	$	(535	)	$	1,410		$	644	$	2,756
Gains (losses) on foreign currency derivative instruments not designated as hedges		1,097			(585	)		397		(1,324	)
Other miscellaneous income (expense)		269			242			642		188
	$	831		$	1,067		$	1,683	$	1,620

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Related Party Transactions

6 Months Ended

Jun. 30, 2017

Related Party Transactions [Abstract]

Related Party Transactions

Note 19. Related Party Transactions

In January 2008, the Company entered into a lease for a customer engagement 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 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, 2017 and 2016, and  $0.2 million during both the six months ended June 30, 2017 and 2016 under the terms of the lease.

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Overview and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business

Business — Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) is a global business processing outsourcing leader in providing comprehensive inbound customer engagement solutions and services to Global 2000 companies, primarily in the communications, financial services, healthcare, technology, transportation and leisure, retail and other industries. SYKES’ differentiated end-to-end solutions and service platform effectively engages consumers at every touch point in their customer lifecycle, starting from digital marketing and acquisition to customer support, up-sell/cross-sell and retention. The Company serves its 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 regions primarily provide customer engagement services (with an emphasis on inbound technical support, digital marketing and demand generation, and customer service), which includes customer assistance, healthcare and roadside assistance, technical support, and product and service sales to its clients’ customers. These services are delivered through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. The Company also provides various enterprise support services in the United States that include services for its clients’ 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. SYKES has developed an extensive global reach with customer engagement centers across six continents, including North America, South America, Europe, Asia, Australia and Africa. The Company delivers cost-effective solutions that enhance the customer service experience, promote stronger brand loyalty, and bring out high levels of performance and profitability.

Acquisitions

On May 31, 2017, the Company completed the acquisition of certain assets of a Global 2000 telecommunications services provider, pursuant to a definitive Asset Purchase Agreement (the “Purchase Agreement”) entered into on April 24, 2017 (the “Telecommunications Asset acquisition”). The Company has reflected the Telecommunications Asset acquisition’s results in the Condensed Consolidated Financial Statements since May 31, 2017. See Note 2, Acquisitions, for additional information on the acquisition.

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 Clearlink’s results in the Condensed Consolidated Financial Statements since April 1, 2016. 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, 2017 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2017. 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, 2016, as filed with the Securities and Exchange Commission (“SEC”) on March 1, 2017.

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 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, 2017 and December 31, 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 Sheets. Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Income Statements for the three months ended June 30, 2017 and 2016 were $8.6 million and $8.0 million, respectively, and $18.4 million and $8.0 million for the six months ended June 30, 2017 and 2016, respectively.

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. In 2016, the FASB issued additional ASUs that are part of the overall new revenue guidance including: ASU 2016-08, Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing, 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”) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients.

The Company is continuing to evaluate the impact of ASU 2014-09 and the related ASUs on its financial condition, results of operations and cash flows. The Company anticipates that it will apply the modified retrospective adoption alternative for these amendments, which will result in a cumulative effect adjustment to retained earnings as of January 1, 2018. The adoption of these amendments will require expanded qualitative and quantitative disclosures about the Company’s contracts with its customers. The Company has established an implementation team tasked with evaluating provisions within its contracts as well as reviewing accounting policies and internal controls. Based on the preliminary results of its evaluation, the Company does not expect the adoption of these ASUs on January 1, 2018 to have a material impact on the timing of recognition of revenue; however, the Company is still assessing the requirement to estimate variable consideration, such as performance-related bonus and penalty provisions. The Company expects to complete its assessment by the end of the third quarter of 2017.

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 Accounting Standards Codification (“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 for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and there are certain optional practical expedients that an entity may elect to apply. The Company expects the adoption of ASU 2016-02 to result in a material increase in the assets and liabilities on the consolidated balance sheets due to the amount of the Company’s lease commitments. However, the amendments will likely have an insignificant impact on our consolidated statements of income. The Company is continuing to evaluate the magnitude of the impact and related disclosures, as well as the timing and method of adoption, with respect to the optional practical expedients.

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.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). These amendments clarify the presentation of cash receipts and payments in eight specific situations. These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments will be applied using a retrospective transition method to each period presented. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to materially impact its financial condition, results of operations and cash flows.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”). These amendments require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. These amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. These amendments will be applied using a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued. The Company does not expect the adoption of ASU 2016-16 to materially impact its financial condition, results of operations and cash flows.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cash (A Consensus of the FASB Emerging Issues Task Force (“ASU 2016-18”). These amendments clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, requiring entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments will be applied using a retrospective transition method to each period presented. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-18 to materially impact its financial condition, results of operations and cash flows.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business (“ASU 2017-01”). These amendments clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. These amendments will be applied prospectively. Early adoption is permitted in certain circumstances. The Company does not expect the adoption of ASU 2017-01 to materially impact its financial condition, results of operations and cash flows.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). These amendments simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. These amendments are effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. These amendments will be applied on a prospective basis, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to materially impact its financial condition, results of operations and cash flows.

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). These amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component outside of a subtotal of income from operations. If a separate line item is not used, the line items used in the income statement to present other components of net benefit cost must be disclosed. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period for which financial statements, interim or annual, have not been issued or made available for issuance. These amendments will be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The amendments allow a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The Company does not expect the adoption of ASU 2017-07 to materially impact its financial condition, results of operations and cash flows.

New Accounting Standards Recently Adopted

New Accounting Standards Recently Adopted

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) – Scope of Modification Accounting (“ASU 2017-09”). These amendments provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. These amendments should be applied prospectively to changes in terms and conditions of awards occurring on or after the adoption date. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The early adoption of ASU 2017-09 on June 30, 2017 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

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. The adoption of ASU 2016-05 on January 1, 2017 did not have a material impact on the financial condition, results of operations and cash flows of the Company.

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. The adoption of ASU 2016-09 on January 1, 2017 resulted in stock-based compensation excess tax benefits or deficiencies reflected in the consolidated statements of operations on a prospective basis as a component of the provision for income taxes. Prior to the adoption, these benefits or deficiencies were recognized in equity. Additionally, the Company’s consolidated statements of cash flows now include excess tax benefits as an operating activity, with prior periods adjusted accordingly. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented on the Company’s consolidated cash flows statements since such cash flows have historically been presented as a financing activity. Finally, the Company has elected to account for forfeitures as they occur, rather than estimating expected forfeitures.

As a result of the adoption of ASU 2016-09, the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2016 was adjusted as follows: a $2.1 million increase to net cash provided by operating activities and a $2.1 million decrease to net cash provided by financing activities. Additionally, the Condensed Consolidated Statement of Changes in Shareholders’ Equity for the six months ended June 30, 2017 reflects a cumulative effect of accounting change of $0.2 million to “Additional paid-in capital” and $(0.2) million to “Retained earnings” related to the change in accounting for forfeitures.

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.

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 exchange 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.

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, the 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.

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 acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”) on July 2, 2015 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.

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.

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 (“ASC 740”). 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) - Clearlink [Member]

6 Months Ended

Jun. 30, 2017

Summary of Consideration Paid and Transferred

The Clearlink purchase price totaled $207.9 million, consisting of the following (in thousands):

	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 Final Purchase Price Allocation of Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the final purchase price allocation of the fair values of the assets acquired and liabilities assumed, all included in the Americas segment (in thousands):

	Amount
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		70,563
Intangibles		121,400
Deferred charges and other assets		229
Accounts payable		(3,564	)
Accrued employee compensation and benefits		(1,610	)
Income taxes payable		(340	)
Deferred revenue		(4,620	)
Other accrued expenses and current liabilities		(6,324	)
Total current liabilities		(16,458	)
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):

			Weighted Average
			Amortization Period
	Amount Assigned		(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 (Loss)

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. 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 (in thousands):

	Three Months Ended June 30, 2016		Six Months Ended   June 30, 2016
Revenues	$	364,403	$	718,977
Net income	$	10,975	$	25,895
Net income per common share:
Basic	$	0.26	$	0.62
Diluted	$	0.26	$	0.62

Merger and Integration Costs

Merger and integration costs associated with Clearlink included in “General and administrative” costs in the accompanying Condensed Consolidated Statement of Operations were as follows (none in 2017) (in thousands):

	Three Months Ended		Six Months Ended
	June 30, 2016		June 30, 2016
Americas	$	29	$	29
Other		2,934		4,376
	$	2,963	$	4,405

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Costs Associated with Exit or Disposal Activities (Tables)

6 Months Ended

Jun. 30, 2017

Restructuring and Related Activities [Abstract]

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 (none in 2017) (in thousands):

	Three Months Ended			Six Months Ended
	June 30, 2016			June 30, 2016
Beginning accrual	$	527		$	733
Cash payments (1)		(208	)		(414	)
Ending accrual	$	319		$	319
(1) Related to lease obligations and facility exit costs.

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Fair Value (Tables)

6 Months Ended

Jun. 30, 2017

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 as of June 30, 2017 (in thousands):

				Fair Value Measurements at June 30, 2017 Using:
				Quoted Prices		Significant
				in Active		Other		Significant
				Markets For		Observable		Unobservable
		Balance at		Identical Assets		Inputs		Inputs
		June 30, 2017		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	356	$	-	$	356	$	-
Embedded derivatives	(1)		84		-		-		84
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		7,446		7,446		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		3,283		3,283		-		-
		$	11,169	$	10,729	$	356	$	84
Liabilities:
Long-term debt	(3)	$	267,000	$	-	$	267,000	$	-
Foreign currency forward and option contracts	(1)		4,468		-		4,468		-
Embedded derivatives	(1)		255		-		-		255
Contingent consideration	(4)		1,127		-		-		1,127
		$	272,850	$	-	$	271,468	$	1,382
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 as of December 31, 2016 (in thousands):
				Fair Value Measurements at December 31, 2016 Using:
				Quoted Prices		Significant
				in Active		Other		Significant
				Markets For		Observable		Unobservable
		Balance at		Identical Assets		Inputs		Inputs
		December 31, 2016		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts	(1)	$	3,921	$	-	$	3,921	$	-
Embedded derivatives	(1)		12		-		-		12
Equity investments held in rabbi trust for the Deferred Compensation Plan	(2)		7,470		7,470		-		-
Debt investments held in rabbi trust for the Deferred Compensation Plan	(2)		1,944		1,944		-		-
		$	13,347	$	9,414	$	3,921	$	12
Liabilities:
Long-term debt	(3)	$	267,000	$	-	$	267,000	$	-
Foreign currency forward and option contracts	(1)		1,912		-		1,912		-
Embedded derivatives	(1)		567		-		-		567
Contingent consideration	(4)		6,100		-		-		6,100
		$	275,579	$	-	$	268,912	$	6,667

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

⁽⁴⁾ Included in “Other accrued expenses and current liabilities” 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):

	Fair Value
Balance at January 1, 2016	$	-
Gain (loss) recognized in “Other income (expense)” (1)		(714	)
Effect of foreign currency		159
Balance at December 31, 2016	$	(555	)
Gain (loss) recognized in “Other income (expense)” (1)		315
Effect of foreign currency		69
Balance at June 30, 2017	$	(171	)
Unrealized gain (loss) for the three months ended June 30, 2016	$	(12	)
Unrealized gain (loss) for the six months ended June 30, 2016	$	43
Unrealized gain (loss) for the three months ended June 30, 2017	$	200
Unrealized gain (loss) for the six months ended June 30, 2017	$	384
(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, 2016	$	6,280
Acquisition (1)		2,779
Payments		(1,396	)
Imputed interest		754
Fair value (gain) loss adjustments		(2,250	)
Effect of foreign currency		(67	)
Balance at December 31, 2016		6,100
Payments		(4,528	)
Imputed interest		68
Fair value (gain) loss adjustments		(701	)
Effect of foreign currency		188
Balance at June 30, 2017	$	1,127
(1) Liability acquired as part of the Clearlink acquisition on April 1, 2016. See Note 2, Acquisitions, for further information.

Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets

The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) subject to the requirements of ASC 820 (in thousands) (none in 2016):

	Total Impairment (Loss)
	Three Months Ended			Six Months Ended
	June 30, 2017			June 30, 2017
Americas:
Property and equipment, net	$	(4,189	)	$	(4,391	)

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017 (in thousands):

								Weighted Average
			Accumulated					Amortization
	Gross Intangibles		Amortization			Net Intangibles		Period (years)
Intangible assets subject to amortization:
Customer relationships	$	169,278	$	(85,252	)	$	84,026		10
Trade names and trademarks		14,103		(7,938	)		6,165		7
Non-compete agreements		2,996		(1,946	)		1,050		2
Content library		515		(515	)		-		2
Proprietary software		1,550		(1,025	)		525		3
Favorable lease agreement		449		(449	)		-		2
Intangible assets not subject to amortization:
Domain names		52,985		-			52,985		N/A
	$	241,876	$	(97,125	)	$	144,751		6

The following table presents the Company’s purchased intangible assets as of December 31, 2016 (in thousands):

	Gross Intangibles		Accumulated       Amortization			Net Intangibles		Weighted Average Amortization Period (years)
Intangible assets subject to amortization:
Customer relationships	$	166,634	$	(75,364	)	$	91,270		10
Trade names and trademarks		14,095		(7,083	)		7,012		7
Non-compete agreements		2,993		(1,643	)		1,350		2
Content library		475		(357	)		118		2
Proprietary software		1,550		(955	)		595		3
Favorable lease agreement		449		(449	)		-		2
Intangible assets not subject to amortization:
Domain names		52,710		-			52,710		N/A
	$	238,906	$	(85,851	)	$	153,055		6

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, 2017, is as follows (in thousands):

Years Ending December 31,	Amount
2017 (remaining six months)	$	10,567
2018		14,868
2019		13,815
2020		11,155
2021		6,664
2022		5,709
2023 and thereafter		28,988

Changes in Goodwill

Changes in goodwill for the six months ended June 30, 2017 consist of the following (in thousands):

					Effect of Foreign
	January 1, 2017		Acquisition		Currency		June 30, 2017
Americas	$	255,842	$	-	$	811	$	256,653
EMEA		9,562		-		719		10,281
	$	265,404	$	-	$	1,530	$	266,934
Changes in goodwill for the year ended December 31, 2016 consist of the following (in thousands):
					Effect of Foreign
	January 1, 2016		Acquisition (1)		Currency		December 31, 2016
Americas	$	186,049	$	70,563	$	(770)	$	255,842
EMEA		9,684		-		(122)		9,562
	$	195,733	$	70,563	$	(892)	$	265,404

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

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Financial Derivatives (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017		December 31, 2016
Deferred gains (losses) in AOCI	$	(2,126)	$	(2,295)
Tax on deferred gains (losses) in AOCI		37		69
Deferred gains (losses) in AOCI, net of taxes	$	(2,089)	$	(2,226)
Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months	$	(2,126)

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, 2017				As of December 31, 2016
	Notional				Notional
	Amount in		Settle Through		Amount in		Settle Through
Contract Type	USD		Date		USD		Date
Cash flow hedges:
Options:
Philippine Pesos	$	32,000		May 2018	$	51,000		December 2017
Forwards:
Philippine Pesos		3,000		June 2018		-		-
Costa Rican Colones		58,750		June 2018		45,500		December 2017
Hungarian Forints		1,370		December 2017		-		-
Romanian Leis		3,850		December 2017		-		-
Net investment hedges:
Forwards:
Euros		76,933		September 2017		76,933		September 2017
Non-designated hedges:
Forwards		38,179		September 2017		55,614		March 2017
Embedded derivatives		13,808		April 2030		13,234		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, 2017		December 31, 2016
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (1)	$	48	$	-
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (1)		242		3,230
		290		3,230
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (1)		66		691
Embedded derivatives (1)		17		8
Embedded derivatives (2)		67		4
Total derivative assets	$	440	$	3,933
	Derivative Liabilities
	June 30, 2017		December 31, 2016
	Fair Value		Fair Value
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts (3)	$	1,861	$	1,806
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts (3)		2,384		-
		4,245		1,806
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts (3)		223		106
Embedded derivatives (3)		166		174
Embedded derivatives (4)		89		393
Total derivative liabilities	$	4,723	$	2,479

⁽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, 2017 and 2016 (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,
	2017		2016			2017			2016		2017		2016
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	(1,232)	$	(2,072	)	$	(820	)	$	4	$	-	$	-
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		(4,774)		2,414			-			-		-		-
	$	(6,006)	$	342		$	(820	)	$	4	$	-	$	-

	Gain (Loss) Recognized in “Other income (expense)” on Derivatives
	June 30,
	2017		2016
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	$	921	$	575
Embedded derivatives		176		10
	$	1,097	$	585

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, 2017 and 2016 (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,
	2017			2016			2017			2016			2017		2016
Derivatives designated as cash flow hedging instruments under ASC 815:
Foreign currency forward and option contracts	$	(1,466	)	$	431		$	(1,580	)	$	(50	)	$	-	$	-
Derivatives designated as net investment hedging instruments under ASC 815:
Foreign currency forward contracts		(5,373	)		(698	)		-			-			-		-
	$	(6,839	)	$	(267	)	$	(1,580	)	$	(50	)	$	-	$	-

	Gain (Loss) Recognized in “Other income (expense)” on Derivatives
	June 30,
	2017		2016
Derivatives not designated as hedging instruments under ASC 815:
Foreign currency forward contracts	$	82	$	1,370
Embedded derivatives		315		(46	)
	$	397	$	1,324

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Investments Held in Rabbi Trust (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017				December 31, 2016
	Cost		Fair Value		Cost		Fair Value
Mutual funds	$	7,871	$	10,729	$	7,257	$	9,414

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

The mutual funds held in rabbi trust were 69% equity-based and 31% debt-based as of June 30, 2017. Net investment income (losses), included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016
Gross realized gains from sale of trading securities	$	151		$	-	$	151		$	-
Gross realized (losses) from sale of trading securities		(2	)		-		(2	)		-
Dividend and interest income		25			10		39			19
Net unrealized holding gains (losses)		149			134		542			154
Net investment income (losses)	$	323		$	144	$	730		$	173

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Deferred Revenue (Tables)

6 Months Ended

Jun. 30, 2017

Revenue Recognition and Deferred Revenue [Abstract]

Components of Deferred Revenue

Deferred revenue consists of the following (in thousands):

	June 30, 2017		December 31, 2016
Future service	$	28,860	$	27,116
Estimated potential penalties and holdbacks		6,206		6,593
Estimated chargebacks		5,419		5,027
	$	40,485	$	38,736

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Deferred Grants (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017			December 31, 2016
Property grants	$	3,098		$	3,353
Lease grants		532			502
Employment grants		43			67
Total deferred grants		3,673			3,922
Less: Lease grants - short-term (1)		(110	)		(94)
Less: Employment grants - short-term (1)		(43	)		(67)
Total long-term deferred grants	$	3,520		$	3,761

⁽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, 2017

Debt Disclosure [Abstract]

Components of Borrowings

Borrowings consist of the following (in thousands):

	June 30, 2017		December 31, 2016
Revolving credit facility	$	267,000	$	267,000
Less: Current portion		-		-
Total long-term debt	$	267,000	$	267,000

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,
	2017		2016		2017		2016
Average daily utilization	$	267,000	$	278,769	$	267,000	$	174,385
Interest expense, including commitment fee (1)	$	1,600	$	1,079	$	3,043	$	1,454
Weighted average interest rate (2)		2.4%		1.6%		2.3%		1.9%

⁽¹⁾ Excludes the amortization of deferred loan fees.    

⁽²⁾ Includes the commitment fee.

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2017

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, 2016	$	(58,601	)	$	4,170		$	1,029		$	(527	)	$	267		$	(53,662	)
Pre-tax amount		(13,832	)		3,409			212			(2,313	)		(9	)		(12,533	)
Tax (provision) benefit		-			(1,313	)		(8	)		72			-			(1,249	)
Reclassification of (gain) loss to net income		-			-			(52	)		527			(58	)		417
Foreign currency translation		40			-			(56	)		16			-			-
Balance at December 31, 2016		(72,393	)		6,266			1,125			(2,225	)		200			(67,027	)
Pre-tax amount		20,416			(5,373	)		-			(1,466	)		-			13,577
Tax (provision) benefit		-			2,069			-			28			-			2,097
Reclassification of (gain) loss to net income		-			-			(21	)		1,522			(25	)		1,476
Foreign currency translation		(34	)		-			(18	)		52			-			-
Balance at June 30, 2017	$	(52,011	)	$	2,962		$	1,086		$	(2,089	)	$	175		$	(49,877	)

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
	2017			2016		2017			2016			Location
Actuarial Gain (Loss) Related to Pension Liability: (1)
Pre-tax amount	$	11		$	10	$	21		$	22			Direct salaries and related costs
Tax (provision) benefit		-			-		-			-			Income taxes
Reclassification to net income		11			10		21			22
Gain (Loss) on Cash Flow Hedging Instruments: (2)
Pre-tax amount		(820	)		4		(1,580	)		(50	)		Revenues
Tax (provision) benefit		17			3		58			22			Income taxes
Reclassification to net income		(803	)		7		(1,522	)		(28	)
Gain (Loss) on Post Retirement Obligation: (1)
Pre-tax amount		13			14		25			27			General and administrative
Tax (provision) benefit		-			-		-			-			Income taxes
Reclassification to net income		13			14		25			27
Total reclassification of gain (loss) to net income	$	(779	)	$	31	$	(1,476	)	$	21

⁽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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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2017

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,
	2017		2016		2017		2016
Basic:
Weighted average common shares outstanding		41,854		41,970		41,756		41,838
Diluted:
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust		80		131		163		263
Total weighted average diluted shares outstanding		41,934		42,101		41,919		42,101
Anti-dilutive shares excluded from the diluted earnings per share calculation		46		21		16		21

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Commitments and Loss Contingency (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017, including the impact of the leases assumed in connection with the Telecommunications Asset acquisition (in thousands):

	Amount
2017 (remaining six months)	$	2,780
2018		7,272
2019		6,822
2020		7,506
2021		7,610
2022		6,926
2023 and thereafter		18,407
Total minimum payments required	$	57,323

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, 2017 (in thousands):

	Amount
2017 (remaining six months)	$	5,560
2018		5,881
2019		5,176
2020		619
2021		-
2022		-
2023 and thereafter		-
Total minimum payments required	$	17,236

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Defined Benefit Pension Plan and Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 2017

Retirement Benefits [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,
	2017			2016			2017			2016
Service cost	$	128		$	120		$	253		$	238
Interest cost		49			45			98			89
Recognized actuarial (gains)		(11	)		(10	)		(21	)		(22	)
Net periodic benefit cost	$	166		$	155		$	330		$	305

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,
	2017		2016		2017		2016
401(k) plan contributions	$	309	$	334	$	620	$	619

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, 2017		December 31, 2016
Postretirement benefit obligation	$	21	$	27
Unrealized gains (losses) in AOCI (1)	$	175	$	200
(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, 2017

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,
	2017			2016			2017			2016
Stock-based compensation (expense) (1)	$	(2,261	)	$	(3,547	)	$	(4,732	)	$	(5,729	)
Income tax benefit (2)		871			1,348			1,822			2,177
Excess tax benefit (deficiency) from stock-based compensation (3)		-			149			-			2,060

⁽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 Statement 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,
	2017		2016
Expected volatility		19.3%		25.3%
Weighted-average volatility		19.3%		25.3%
Expected dividend rate		0.0%		0.0%
Expected term (in years)		5.0		5.0
Risk-free rate		1.9%		1.5%

Summary of Stock Appreciation Rights Activity

The following table summarizes SARs activity as of June 30, 2017 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, 2017		633		$	-
Granted		396		$	-
Exercised		(196	)	$	-
Forfeited or expired		-		$	-
Outstanding at June 30, 2017		833		$	-		8.9	$	4,214
Vested or expected to vest at June 30, 2017		833		$	-		8.9	$	4,214
Exercisable at June 30, 2017		163		$	-		7.2	$	1,304

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,
	2017		2016
Number of SARs granted		396		323
Weighted average grant-date fair value per SAR	$	6.24	$	7.68
Intrinsic value of SARs exercised	$	1,678	$	1,691
Fair value of SARs vested	$	1,846	$	1,520

Summary of Nonvested Stock Appreciation Rights

The following table summarizes nonvested SARs activity as of June 30, 2017 and for the six months then ended:

Nonvested Stock Appreciation Rights	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		515		$	7.76
Granted		396		$	6.24
Vested		(241	)	$	7.69
Forfeited or expired		-		$	-
Nonvested at June 30, 2017		670		$	6.88

Summary of Nonvested Restricted Shares and Restricted Stock Units

The following table summarizes nonvested restricted shares/RSUs activity as of June 30, 2017 and for the six months then ended:

Nonvested Restricted Shares and RSUs	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		1,136		$	25.47
Granted		480		$	29.42
Vested		(328	)	$	20.95
Forfeited or expired		(63	)	$	20.71
Nonvested at June 30, 2017		1,225		$	28.48

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,
	2017		2016
Number of restricted shares/RSUs granted		480		451
Weighted average grant-date fair value per restricted share/RSU	$	29.42	$	30.32
Fair value of restricted shares/RSUs vested	$	6,868	$	6,785

Summary of Nonvested Common Stock Units and Share Awards

The following table summarizes nonvested common stock share award activity as of June 30, 2017 and for the six months then ended:

Nonvested Common Stock Share Awards	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		10		$	28.69
Granted		24		$	32.93
Vested		(14	)	$	30.41
Forfeited or expired		-		$	-
Nonvested at June 30, 2017		20		$	32.54

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,
	2017		2016
Number of share awards granted		24		32
Weighted average grant-date fair value per share award	$	32.93	$	29.04
Fair value of share awards vested	$	430	$	410

Summary of Nonvested Common Stock

The following table summarizes nonvested common stock activity as of June 30, 2017 and for the six months then ended:

Nonvested Common Stock	Shares (000s)			Weighted Average Grant- Date Fair Value
Nonvested at January 1, 2017		2		$	22.77
Granted		10		$	30.66
Vested		(8	)	$	30.62
Forfeited or expired		-		$	-
Nonvested at June 30, 2017		4		$	27.08

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,
	2017		2016
Number of shares of common stock granted		10		6
Weighted average grant-date fair value per common stock	$	30.66	$	29.76
Fair value of common stock vested	$	240	$	183
Cash used to settle the obligation	$	422	$	359

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Segments and Geographic Information (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017:
Revenues	$	314,871	$	60,540	$	27		$	375,438
Percentage of revenues		83.9%		16.1%		0.0%			100.0%
Depreciation, net	$	11,842	$	1,254	$	724		$	13,820
Amortization of intangibles	$	4,989	$	261	$	-		$	5,250
Income (loss) from operations	$	26,089	$	2,163	$	(16,962	)	$	11,290
Total other income (expense), net						(890	)		(890	)
Income taxes						(1,555	)		(1,555	)
Net income								$	8,845
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
Total other income (expense), net						(373	)		(373	)
Income taxes						(3,891	)		(3,891	)
Net income								$	9,138
Six Months Ended June 30, 2017:
Revenues	$	635,802	$	123,607	$	43		$	759,452
Percentage of revenues		83.7%		16.3%		0.0%			100.0%
Depreciation, net	$	23,310	$	2,440	$	1,418		$	27,168
Amortization of intangibles	$	9,967	$	514	$	-		$	10,481
Income (loss) from operations	$	64,022	$	7,743	$	(34,461	)	$	37,304
Total other income (expense), net						(1,582	)		(1,582	)
Income taxes						(8,165	)		(8,165	)
Net income								$	27,557
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
Total other income (expense), net						(475	)		(475	)
Income taxes						(10,105	)		(10,105	)
Net income								$	23,092

⁽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, 2017 and 2016. Inter-segment revenues are not material to the Americas and EMEA segment results.

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Other Income (Expense) (Tables)

6 Months Ended

Jun. 30, 2017

Other Income and Expenses [Abstract]

Other Income (Expense), Net

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017		2016
Foreign currency transaction gains (losses)	$	(535	)	$	1,410		$	644	$	2,756
Gains (losses) on foreign currency derivative instruments not designated as hedges		1,097			(585	)		397		(1,324	)
Other miscellaneous income (expense)		269			242			642		188
	$	831		$	1,067		$	1,683	$	1,620

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Overview and Basis of Presentation - Additional Information (Detail) - USD ($)			3 Months Ended		6 Months Ended
	May 31, 2017	Apr. 24, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jan. 01, 2017	Dec. 31, 2016
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Cash provided by operating activities					$ 71,569,000	$ 66,678,000
Net cash provided by (used for) financing activities					(8,281,000)	197,174,000
Direct Salaries and Related Costs [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Total advertising costs			$ 8,600,000	$ 8,000,000	18,400,000	8,000,000
Accounting Standards Update 2016-09 [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Cash provided by operating activities						2,100,000
Net cash provided by (used for) financing activities						$ (2,100,000)
Cumulative effect of accounting change			79,000		79,000
Accounting Standards Update 2016-09 [Member] | Additional Paid-in Capital [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Cumulative effect of accounting change			232,000		232,000		$ 232,000
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Cumulative effect of accounting change			(153,000)		(153,000)		$ (153,000)
Maximum [Member] | Prepaid Expenses And Other Current Assets [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Capitalized direct response advertising costs			$ 100,000		$ 100,000			$ 100,000
Clearlink [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Effective date of acquisition					Apr. 01, 2016
Clearlink [Member] | Americas [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Date of Acquisition agreement					Mar. 06, 2016
Effective date of acquisition					Apr. 01, 2016
Global 2000 Telecommunications Services Provider [Member] | Americas [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Date of Acquisition agreement	Apr. 24, 2017	Apr. 24, 2017
Effective date of acquisition	May 31, 2017	May 31, 2017

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Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands				6 Months Ended
	May 31, 2017	Apr. 24, 2017	Apr. 01, 2016	Jun. 30, 2017
Clearlink [Member]
Business Acquisition [Line Items]
Aggregate purchase price			$ 209,186
Effective date of acquisition				Apr. 01, 2016
Total Consideration paid			207,908
Funds placed in escrow as security for indemnifications			2,600
Claims Asserted for Payment of Indemnification Obligations			400
Clearlink [Member] | Americas [Member]
Business Acquisition [Line Items]
Effective date of acquisition				Apr. 01, 2016
Intangibles acquired			$ 121,400
Date of Acquisition agreement				Mar. 06, 2016
Percentage of outstanding membership units			100.00%
Amortization period of deductible intangibles and goodwill			15 years
Global 2000 Telecommunications Services Provider [Member] | Americas [Member]
Business Acquisition [Line Items]
Aggregate purchase price	$ 7,500
Effective date of acquisition	May 31, 2017	May 31, 2017
Property and equipment acquired	$ 6,000
Date of Acquisition agreement	Apr. 24, 2017	Apr. 24, 2017
Customer Relationships [Member] | Clearlink [Member] | Americas [Member]
Business Acquisition [Line Items]
Intangibles acquired			$ 63,800
Customer Relationships [Member] | Global 2000 Telecommunications Services Provider [Member] | Americas [Member]
Business Acquisition [Line Items]
Intangibles acquired	$ 1,500

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Acquisitions - Summary of Consideration Paid and Transferred (Detail) - Clearlink [Member] $ in Thousands	Apr. 01, 2016 USD ($)
Business Acquisition [Line Items]
Cash	$ 209,186
Working capital adjustment	(1,278)
Total Consideration paid	$ 207,908

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Acquisitions - Summary of Final Purchase Price Allocation of Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Apr. 01, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill	$ 266,934	$ 265,404		$ 195,733
Americas [Member]
Business Acquisition [Line Items]
Goodwill	256,653	255,842		$ 186,049
Clearlink [Member]
Business Acquisition [Line Items]
Goodwill	$ 70,600
Clearlink [Member] | Americas [Member]
Business Acquisition [Line Items]
Intangibles			$ 121,400
Clearlink [Member] | Americas [Member] | Final Purchase Price Allocation [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		70,563
Intangibles		121,400
Deferred charges and other assets		229
Accounts payable		(3,564)
Accrued employee compensation and benefits		(1,610)
Income taxes payable		(340)
Deferred revenue		(4,620)
Other accrued expenses and current liabilities		(6,324)
Total current liabilities		(16,458)
Other long-term liabilities		(1,633)
Purchase price, total		$ 207,908

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Acquisitions - Summary of Purchased Intangible Assets (Detail) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
	Apr. 01, 2016	Jun. 30, 2017	Dec. 31, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (years)		6 years	6 years
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (years)		10 years	10 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	3 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

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Acquisitions - Schedule of Revenues and Net Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition [Line Items]
Revenues	$ 375,438	$ 364,402	$ 759,452	$ 685,148
Net income	$ 8,845	9,138	$ 27,557	23,092
Clearlink [Member] | Americas [Member]
Business Acquisition [Line Items]
Revenues		36,362		36,362
Net income		$ 791		$ 791

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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, 2016
Business Acquisition [Line Items]
Revenues	$ 364,403	$ 718,977
Net income	$ 10,975	$ 25,895
Net income per common share:
Basic	$ 0.26	$ 0.62
Diluted	$ 0.26	$ 0.62

XML

Acquisitions - Merger and Integration Costs (Detail) - Clearlink [Member] - General and Administrative [Member] - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Business Acquisition [Line Items]
Merger and integration costs	$ 2,963	$ 4,405
Americas [Member]
Business Acquisition [Line Items]
Merger and integration costs	29	29
Other Segments [Member]
Business Acquisition [Line Items]
Merger and integration costs	$ 2,934	$ 4,376

XML

Costs Associated with Exit or Disposal Activities - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016 USD ($) Employees	Jun. 30, 2016 USD ($)	Apr. 01, 2016 USD ($)	Dec. 31, 2015 USD ($)
Restructuring and Related Activities [Abstract]
Cash payment related to restructuring plan	$ 16,200,000
Estimated employee rationalization associated with exit or disposal activities | Employees	800
Outstanding liability balance related to exit plan	$ 0	$ 319,000	$ 527,000	$ 733,000

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, 2016
Restructuring and Related Activities [Abstract]
Beginning accrual	$ 527	$ 733
Cash payments	(208)	(414)
Ending accrual	$ 319	$ 319

XML

Fair Value - Additional Information (Detail) $ in Thousands, € in Millions	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	May 31, 2017 USD ($)	May 31, 2017 EUR (€)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 EUR (€)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 EUR (€)	Dec. 31, 2016 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value (gain) loss adjustments on contingent consideration					$ (701)		$ (2,250)
Payments of contingent consideration related to acquisitions					4,528
Expected future value of contingent consideration			$ 1,100		1,100
Impairment charge			4,189		4,391
Land [Member] | Property and Equipment [Member] | Americas [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charge					200
Equipment, Furniture and Fixtures [Member] | Buildings and Leasehold Improvements [Member] | Property and Equipment [Member] | Americas [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charge			4,200		$ 4,200
Qelp [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value discount rate					14.00%	14.00%
Payments of contingent consideration related to acquisitions	$ 4,400	€ 4.0	4,400	€ 4.0	$ 4,400	€ 4.0
Qelp [Member] | General and Administrative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value (gain) loss adjustments on contingent consideration							(2,600)
Clearlink [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value discount rate					10.00%	10.00%
Payments of contingent consideration related to acquisitions					$ 100
Expected future value of contingent consideration			1,100		1,100
Clearlink [Member] | (Gain) Loss Due to Changes in the Probability of Achievement of Revenue Targets [Member] | General and Administrative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value (gain) loss adjustments on contingent consideration			$ (300)		(300)		$ 300
Clearlink [Member] | (Gain) Loss Due to Settlement [Member] | General and Administrative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value (gain) loss adjustments on contingent consideration					$ (400)

XML

Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets:
Derivative Assets	$ 440	$ 3,933
Total assets	11,169	13,347
Liabilities:
Long-term debt	267,000	267,000
Derivative Liabilities	4,723	2,479
Total liabilities	272,850	275,579
Fair value of contingent consideration	1,127	6,100	$ 6,280
Other Accrued Expenses and Current Liabilities [Member]
Liabilities:
Fair value of contingent consideration	1,127	6,100
Foreign Currency Forward and Option Contracts [Member] | Other Current Assets [Member]
Assets:
Derivative Assets	356	3,921
Foreign Currency Forward and Option Contracts [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]
Liabilities:
Derivative Liabilities	4,468	1,912
Embedded Derivatives [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]
Assets:
Derivative Assets	84	12
Embedded Derivatives [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]
Liabilities:
Derivative Liabilities	255	567
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	7,446	7,470
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	3,283	1,944
Quoted Prices in Active Markets For Identical Assets Level 1 [Member]
Assets:
Total assets	10,729	9,414
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	7,446	7,470
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	3,283	1,944
Significant Other Observable Inputs Level 2 [Member]
Assets:
Total assets	356	3,921
Liabilities:
Long-term debt	267,000	267,000
Total liabilities	271,468	268,912
Significant Other Observable Inputs Level 2 [Member] | Foreign Currency Forward and Option Contracts [Member] | Other Current Assets [Member]
Assets:
Derivative Assets	356	3,921
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	4,468	1,912
Significant Unobservable Inputs Level 3 [Member]
Assets:
Total assets	84	12
Liabilities:
Total liabilities	1,382	6,667
Significant Unobservable Inputs Level 3 [Member] | Other Accrued Expenses and Current Liabilities [Member]
Liabilities:
Fair value of contingent consideration	1,127	6,100
Significant Unobservable Inputs Level 3 [Member] | Embedded Derivatives [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]
Assets:
Derivative Assets	84	12
Significant Unobservable Inputs Level 3 [Member] | Embedded Derivatives [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]
Liabilities:
Derivative Liabilities	$ 255	$ 567

XML

Fair Value - Rollforward of Net Asset (Liability) Activity of Fair Value of Embedded Derivatives (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Unrealized gain (loss)			$ (42)	$ (611)
Embedded Derivatives [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance			(555)
Gain (loss) recognized in "Other income (expense)"			315		$ (714)
Effect of foreign currency			69		159
Ending balance	$ (171)		(171)		$ (555)
Unrealized gain (loss)	$ 200	$ (12)	$ 384	$ 43

XML

Fair Value - Rollforward of Fair Value of Contingent Consideration (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration, Beginning Balance	$ 6,100	$ 6,280
Cash payments	(4,528)	(1,396)
Imputed interest	68	754
Fair value (gain) loss adjustments on contingent consideration	(701)	(2,250)
Effect of foreign currency	188	(67)
Contingent Consideration, Ending Balance	1,127	6,100
Clearlink [Member]
Business Acquisition, Contingent Consideration [Line Items]
Acquisition		$ 2,779
Contingent Consideration, Ending Balance	$ 1,100

XML

Fair Value - Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Impairment of long-lived assets	$ (4,189)	$ (4,391)
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Property and Equipment [Member] | Americas [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Impairment of long-lived assets	$ (4,189)	$ (4,391)

XML

Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 241,876	$ 238,906
Accumulated Amortization	(97,125)	(85,851)
Net Intangibles	$ 144,751	$ 153,055
Weighted Average Amortization Period (years)	6 years	6 years
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 169,278	$ 166,634
Accumulated Amortization	(85,252)	(75,364)
Net Intangibles	$ 84,026	$ 91,270
Weighted Average Amortization Period (years)	10 years	10 years
Trade Name and Trademarks [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 14,103	$ 14,095
Accumulated Amortization	(7,938)	(7,083)
Net Intangibles	$ 6,165	$ 7,012
Weighted Average Amortization Period (years)	7 years	7 years
Content Library [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 515	$ 475
Accumulated Amortization	$ (515)	(357)
Net Intangibles		$ 118
Weighted Average Amortization Period (years)	2 years	2 years
Non-Compete Agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 2,996	$ 2,993
Accumulated Amortization	(1,946)	(1,643)
Net Intangibles	$ 1,050	$ 1,350
Weighted Average Amortization Period (years)	2 years	2 years
Proprietary Software [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Intangibles	$ 1,550	$ 1,550
Accumulated Amortization	(1,025)	(955)
Net Intangibles	$ 525	$ 595
Weighted Average Amortization Period (years)	3 years	3 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	$ 52,985	$ 52,710
Net Intangibles	$ 52,985	$ 52,710

XML

Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands	Jun. 30, 2017 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2017 (remaining six months)	$ 10,567
2018	14,868
2019	13,815
2020	11,155
2021	6,664
2022	5,709
2023 and thereafter	$ 28,988

XML

Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Goodwill [Line Items]
Beginning Balance, Goodwill Net	$ 265,404	$ 195,733
Acquisition		70,563
Effect of Foreign Currency	(1,530)	(892)
Ending Balance, Goodwill Net	266,934	265,404
Americas [Member]
Goodwill [Line Items]
Beginning Balance, Goodwill Net	255,842	186,049
Acquisition		70,563
Effect of Foreign Currency	(811)	(770)
Ending Balance, Goodwill Net	256,653	255,842
EMEA [Member]
Goodwill [Line Items]
Beginning Balance, Goodwill Net	9,562	9,684
Effect of Foreign Currency	(719)	(122)
Ending Balance, Goodwill Net	$ 10,281	$ 9,562

XML

Goodwill and Intangible Assets - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2017 USD ($) Reporting_Unit	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Goodwill [Line Items]
Number of reporting units | Reporting_Unit	6
Number of reporting units, fair value in excess of carrying value | Reporting_Unit	4
Goodwill	$ 266,934,000	$ 265,404,000	$ 195,733,000
Qelp [Member]
Goodwill [Line Items]
Goodwill Impairment Loss	0
Goodwill	$ 10,300,000
Clearlink [Member]
Goodwill [Line Items]
Effective date of acquisition	Apr. 01, 2016
Goodwill	$ 70,600,000

XML

Financial Derivatives - Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Deferred gains (losses) in AOCI	$ (2,126)	$ (2,295)
Tax on deferred gains (losses) in AOCI	37	69
Deferred gains (losses) in AOCI, net of taxes	(2,089)	$ (2,226)
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months	$ (2,126)

XML

Financial Derivatives - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Maximum period of foreign currency hedge contracts	180 days
Maximum amount of loss due to credit risk	$ 400,000	$ 3,900,000
Total net settlement amount asset positions	0	3,600,000
Total net settlement amount liability positions	$ 4,100,000	$ 1,600,000

XML

Financial Derivatives - Outstanding Foreign Currency Forward Contracts, Options and Embedded Derivatives (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Option Contracts [Member] | Philippine Pesos [Member]
Derivative [Line Items]
Notional Amount	$ 32,000	$ 51,000
Settle Through Date	May 31, 2018	Dec. 31, 2017
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Philippine Pesos [Member]
Derivative [Line Items]
Notional Amount	$ 3,000
Settle Through Date	Jun. 30, 2018
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Costa Rican Colones [Member]
Derivative [Line Items]
Notional Amount	$ 58,750	$ 45,500
Settle Through Date	Jun. 30, 2018	Dec. 31, 2017
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Hungarian Forints [Member]
Derivative [Line Items]
Notional Amount	$ 1,370
Settle Through Date	Dec. 31, 2017
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Romanian Leis [Member]
Derivative [Line Items]
Notional Amount	$ 3,850
Settle Through Date	Dec. 31, 2017
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Net Investment Hedges [Member] | Forwards [Member] | Euros [Member]
Derivative [Line Items]
Notional Amount	$ 76,933	$ 76,933
Settle Through Date	Sep. 30, 2017	Sep. 30, 2017
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Forwards [Member]
Derivative [Line Items]
Notional Amount	$ 38,179	$ 55,614
Settle Through Date	Sep. 30, 2017	Mar. 31, 2017
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member]
Derivative [Line Items]
Notional Amount	$ 13,808	$ 13,234
Settle Through Date	Apr. 30, 2030	Apr. 30, 2030

XML

Financial Derivatives - Derivative Instruments Fair Value (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 440	$ 3,933
Derivative Liabilities	4,723	2,479
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Option Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	290	3,230
Derivative Liabilities	4,245	1,806
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	66	691
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	223	106
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	17	8
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	67	4
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	166	174
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	89	393
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	48
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	1,861	1,806
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	242	$ 3,230
Net Investment Hedges [Member] | Derivatives 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	$ 2,384

XML

Financial Derivatives - Effect of Company's Derivative Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)	$ (6,006)	$ 342	$ (6,839)	$ (267)
Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)	(820)	4	(1,580)	(50)
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	0	0	0	0
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)	(1,232)	(2,072)	(1,466)	431
Gain (Loss) Reclassified From Accumulated AOCI Into "Revenues" (Effective Portion)	(820)	4	(1,580)	(50)
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	0	0	0	0
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)	(4,774)	2,414	(5,373)	(698)
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	0	0	0	0
Other Income (Expense) [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Other Income (Expense) on Derivatives	1,097	585	397	1,324
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 in Other Income (Expense) on Derivatives	921	575	82	1,370
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 in Other Income (Expense) on Derivatives	$ 176	$ 10	$ 315	$ (46)

XML

Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) - Mutual Funds [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Trading Securities and Other Trading Assets [Line Items]
Mutual funds, Cost	$ 7,871	$ 7,257
Other Current Assets [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Mutual funds, Fair Value	$ 10,729	$ 9,414

XML

Investments Held in Rabbi Trust - Additional Information (Detail)	Jun. 30, 2017
Equity-Based Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Mutual funds held in rabbi trust	69.00%
Debt-Based Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Mutual funds held in rabbi trust	31.00%

XML

Investments Held in Rabbi Trust - Components of Investment Income (Losses), Included in Other Income (Expense), Net in Accompanying Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Schedule of Trading Securities and Other Trading Assets [Line Items]
Gross realized gains from sale of trading securities	$ 151		$ 151
Gross realized (losses) from sale of trading securities	(2)		(2)
Dividend and interest income	25	$ 10	39	$ 19
Net unrealized holding gains (losses)	149	134	542	154
Other Income (Expense) [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Net investment income (losses)	$ 323	$ 144	$ 730	$ 173

XML

Deferred Revenue - Components of Deferred Revenue (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Deferred Revenue Disclosure [Abstract]
Future service	$ 28,860	$ 27,116
Estimated potential penalties and holdbacks	6,206	6,593
Estimated chargebacks	5,419	5,027
Deferred revenue	$ 40,485	$ 38,736

XML

Deferred Grants - Schedule of Deferred Grants, Net of Accumulated Amortization (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Deferred Revenue Arrangement [Line Items]
Total deferred grants	$ 3,673	$ 3,922
Less: Lease grants - short-term	(110)	(94)
Less: Employment grants - short-term	(43)	(67)
Total long-term deferred grants	3,520	3,761
Total deferred grants	3,673	3,922
Other Long-Term Liabilities [Member]
Deferred Revenue Arrangement [Line Items]
Property grants	3,098	3,353
Lease grants	532	502
Other Accrued Expenses and Current Liabilities [Member]
Deferred Revenue Arrangement [Line Items]
Employment grants	$ 43	$ 67

XML

Borrowings - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Apr. 01, 2016	May 31, 2015	May 12, 2015
Line of Credit Facility [Line Items]
Total long-term debt	$ 267,000,000	$ 267,000,000
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
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
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%
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%
2012 Credit Agreement [Member]
Line of Credit Facility [Line Items]
Underwriting fee for credit agreement	$ 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

XML

Borrowings - Components of Borrowings (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Line of Credit Facility [Line Items]
Total long-term debt	$ 267,000	$ 267,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Revolving credit facility	267,000	267,000
Less: Current portion	0	0
Total long-term debt	$ 267,000	$ 267,000

XML

Borrowings - Information Related to Credit Agreements (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Line of Credit Facility [Abstract]
Average daily utilization of borrowings	$ 267,000	$ 278,769	$ 267,000	$ 174,385
Interest expense including commitment fees, excluding amortization of deferred loan fees	$ 1,600	$ 1,079	$ 3,043	$ 1,454
Weighted average interest rate	2.40%	1.60%	2.30%	1.90%

XML

Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	$ (67,027)	$ (53,662)
Pre-tax amount	13,577	(12,533)
Tax (provision) benefit	2,097	(1,249)
Reclassification of (gain) loss to net income	1,476	417
Ending balance, accumulated other comprehensive income (loss)	(49,877)	(67,027)
Foreign Currency Translation Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	(72,393)	(58,601)
Pre-tax amount	20,416	(13,832)
Foreign currency translation	(34)	40
Ending balance, accumulated other comprehensive income (loss)	(52,011)	(72,393)
Unrealized Gain (Loss) on Net Investment Hedge [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	6,266	4,170
Pre-tax amount	(5,373)	3,409
Tax (provision) benefit	2,069	(1,313)
Ending balance, accumulated other comprehensive income (loss)	2,962	6,266
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	1,125	1,029
Pre-tax amount		212
Tax (provision) benefit		(8)
Reclassification of (gain) loss to net income	(21)	(52)
Foreign currency translation	(18)	(56)
Ending balance, accumulated other comprehensive income (loss)	1,086	1,125
Unrealized Gain (Loss) on Cash Flow Hedging Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	(2,225)	(527)
Pre-tax amount	(1,466)	(2,313)
Tax (provision) benefit	28	72
Reclassification of (gain) loss to net income	1,522	527
Foreign currency translation	52	16
Ending balance, accumulated other comprehensive income (loss)	(2,089)	(2,225)
Unrealized Gain (Loss) on Post Retirement Obligation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, accumulated other comprehensive income (loss)	200	267
Pre-tax amount		(9)
Reclassification of (gain) loss to net income	(25)	(58)
Ending balance, accumulated other comprehensive income (loss)	$ 175	$ 200

XML

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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Pre-tax amount	$ 10,400	$ 13,029	$ 35,722	$ 33,197
Tax (provision) benefit	1,555	3,891	8,165	10,105
Reclassification of gain (loss) to net income	8,845	9,138	27,557	23,092
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	(779)	31	(1,476)	21
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	11	10	21	22
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	17	3	58	22
Reclassification of gain (loss) to net income	(803)	7	(1,522)	(28)
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	13	14	25	27
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	11	10	21	22
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	(820)	4	(1,580)	(50)
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	$ 13	$ 14	$ 25	$ 27

XML

Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016	Jun. 30, 2017 USD ($) Jurisdiction	Jun. 30, 2016	Dec. 31, 2016 USD ($)
Income Tax [Line Items]
Effective rate of tax	15.00%	29.90%	22.90%	30.40%
Statutory federal income tax rate	35.00%		35.00%
Recognition of tax benefit			$ 900,000
Amount of mandatory security deposit paid related to Notice of Objection	$ 0		0		$ 13,800,000
Canada Revenue Agency [Member]
Income Tax [Line Items]
Recognition of previous unrecognized tax benefit	$ 1,200,000		$ 1,200,000
Number of significant tax jurisdictions under audit | Jurisdiction			0

XML

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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Basic:
Weighted average common shares outstanding	41,854	41,970	41,756	41,838
Diluted:
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust	80	131	163	263
Total weighted average diluted shares outstanding	41,934	42,101	41,919	42,101
Anti-dilutive shares excluded from the diluted earnings per share calculation	46	21	16	21

XML

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 16, 2016	Aug. 18, 2011
Equity, Class of Treasury Stock [Line Items]
Total Number of Shares Repurchased	0	0	0	0
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			5,300,000
Increase in shares authorized for repurchase					5,000,000

XML

Commitments and Loss Contingency - Schedule of Future Minimum Rental Payments under Operating Leases (Detail) $ in Thousands	Jun. 30, 2017 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2017 (remaining six months)	$ 2,780
2018	7,272
2019	6,822
2020	7,506
2021	7,610
2022	6,926
2023 and thereafter	18,407
Total minimum payments required	$ 57,323

XML

Commitments and Loss Contingency - Additional Information (Detail) $ in Thousands, € in Millions	1 Months Ended		3 Months Ended		6 Months Ended
	May 31, 2017 USD ($)	May 31, 2017 EUR (€)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 EUR (€)	Jun. 30, 2017 USD ($) Acquisition	Jun. 30, 2017 EUR (€) Acquisition	Dec. 31, 2016 USD ($)	Apr. 01, 2016 USD ($)	Dec. 31, 2015 USD ($)	Jul. 02, 2015 USD ($)
Long-term Purchase Commitment [Line Items]
Fair value of contingent consideration			$ 1,127		$ 1,127		$ 6,100		$ 6,280
Payments of contingent consideration related to acquisitions					4,528
Expected future value of contingent consideration			1,100		1,100
Qelp [Member]
Long-term Purchase Commitment [Line Items]
Fair value of contingent consideration			0		0					$ 6,000
Payments of contingent consideration related to acquisitions	$ 4,400	€ 4.0	4,400	€ 4.0	4,400	€ 4.0
Clearlink [Member]
Long-term Purchase Commitment [Line Items]
Fair value of contingent consideration			1,100		1,100			$ 2,800
Payments of contingent consideration related to acquisitions					$ 100
Number of acquisitions with contingent consideration made by Clearlink prior to the Merger | Acquisition					4	4
Expected future value of contingent consideration			$ 1,100		$ 1,100
Minimum [Member]
Long-term Purchase Commitment [Line Items]
Term of agreements with third party vendors					1 year	1 year
Maximum [Member]
Long-term Purchase Commitment [Line Items]
Term of agreements with third party vendors					5 years	5 years

XML

Commitments and Loss Contingency - Schedule of Future Minimum Purchases Remaining under Agreements (Detail) $ in Thousands	Jun. 30, 2017 USD ($)
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]
2017 (remaining six months)	$ 5,560
2018	5,881
2019	5,176
2020	619
2021	0
2022	0
2023 and thereafter	0
Total minimum payments required	$ 17,236

XML

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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]
Service cost	$ 128	$ 120	$ 253	$ 238
Interest cost	49	45	98	89
Recognized actuarial (gains)	(11)	(10)	(21)	(22)
Net periodic benefit cost	$ 166	$ 155	$ 330	$ 305

XML

Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2017
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%

XML

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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Retirement Benefits [Abstract]
401(k) plan contributions	$ 309	$ 334	$ 620	$ 619

XML

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, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Postretirement benefit obligation	$ 21	$ 27
Unrealized gains (losses) in AOCI	$ 175	$ 200

XML

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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation (expense)	$ (2,261)	$ (3,547)	$ (4,732)	$ (5,729)
Income Taxes [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit	$ 871	1,348	$ 1,822	2,177
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

XML

Stock-Based Compensation - Additional Information (Detail) - USD ($)			6 Months Ended		9 Months Ended	12 Months Ended	36 Months Ended
	Dec. 06, 2016	Dec. 10, 2014	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	May 16, 2012	May 18, 2015	Jan. 01, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized stock-based compensation costs			$ 0						$ 0
Accounting Standards Update 2016-09 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net cumulative effect reduction to retained earnings			79,000
Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net cumulative effect reduction to retained earnings			$ (153,000)					$ (153,000)
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			$ 4,000,000
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
Total unrecognized compensation cost			$ 27,000,000
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
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	$ 70,000	$ 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 members of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee									7,500
Annual cash awards for the Chairpersons of the Compensation Committee									15,000
Annual cash awards for the Chairpersons of the Finance Committee									12,500
Annual cash awards for the Chairpersons of the Nominating and Corporate Governance Committee									12,500
Annual Retainer payable in stock to Non Employee Director		100,000
Increased cash component of annual retainer	$ 15,000	$ 5,000
Executive Officer Director Compensation			Directors who are executive officers of the Company receive no compensation for service as members of either the Board of Directors or any committees of the Board.
Non-Employee Director Fee Plan [Member] | Common Stock Awards [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period			1 year
Deferred Compensation Plan [Member] | Common Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period			3 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] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation plan, percentage of employee deferral				1.00%	1.00%
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation plan, percentage of employee deferral				100.00%	80.00%
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			$ 2,100,000						1,800,000
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] | Common Stock Awards [Member] | Other participants [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amounts deferred by certain senior management personnel			5,000
Deferred Compensation Plan [Member] | Accrued Employee Compensation and Benefits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accrued employee compensation and benefits			$ 10,800,000						$ 9,400,000
2001 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan expiration date			Mar. 14, 2011

XML

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, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	19.30%	25.30%
Weighted-average volatility	19.30%	25.30%
Expected dividend rate	0.00%	0.00%
Expected term (in years)	5 years	5 years
Risk-free rate	1.90%	1.50%

XML

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, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Shares, beginning balance	633
Granted, Shares	396	323
Exercised, Shares	(196)
Forfeited or expired, Shares	0
Outstanding Shares, ending balance	833
Vested or expected to vest, Shares	833
Exercisable, Shares	163
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 10 months 25 days
Vested or expected to vest, Weighted Average Remaining Contractual Term	8 years 10 months 25 days
Exercisable, Weighted Average Remaining Contractual Term	7 years 2 months 12 days
Outstanding, Aggregate Intrinsic Value	$ 4,214
Vested or expected to vest, Aggregate Intrinsic Value	4,214
Exercisable, Aggregate Intrinsic Value	$ 1,304

XML

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, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	396	323
Weighted average grant-date fair value per SAR	$ 6.24	$ 7.68
Intrinsic value of SARs exercised	$ 1,678	$ 1,691
Fair value of vested	$ 1,846	$ 1,520

XML

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, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Shares, beginning balance	515
Granted, Shares	396	323
Vested, Shares	(241)
Forfeited, Shares	0
Nonvested Shares, ending balance	670
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance	$ 7.76
Granted, Weighted Average Grant-Date Fair Value	6.24	$ 7.68
Vested, Weighted Average Grant-Date Fair Value	7.69
Forfeited or expired, Weighted Average Grant-Date Fair Value	0
Nonvested, Weighted Average Grant-Date Fair Value, ending balance	$ 6.88

XML

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, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Shares, beginning balance	1,136
Granted, Shares	480	451
Vested, Shares	(328)
Forfeited, Shares	(63)
Nonvested Shares, ending balance	1,225
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance	$ 25.47
Granted, Weighted Average Grant-Date Fair Value	29.42	$ 30.32
Vested, Weighted Average Grant-Date Fair Value	20.95
Forfeited or expired, Weighted Average Grant-Date Fair Value	20.71
Nonvested, Weighted Average Grant-Date Fair Value, ending balance	$ 28.48

XML

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, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	480	451
Weighted average grant-date fair value	$ 29.42	$ 30.32
Fair value of vested	$ 6,868	$ 6,785

XML

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, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Shares, beginning balance	10
Granted, Shares	24	32
Vested, Shares	(14)
Forfeited, Shares	0
Nonvested Shares, ending balance	20
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance	$ 28.69
Granted, Weighted Average Grant-Date Fair Value	32.93	$ 29.04
Vested, Weighted Average Grant-Date Fair Value	30.41
Forfeited or expired, Weighted Average Grant-Date Fair Value	0
Nonvested, Weighted Average Grant-Date Fair Value, ending balance	$ 32.54

XML

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, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	24	32
Weighted average grant-date fair value	$ 32.93	$ 29.04
Fair value of vested	$ 430	$ 410

XML

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, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Shares, beginning balance	2
Granted, Shares	10	6
Vested, Shares	(8)
Forfeited, Shares	0
Nonvested Shares, ending balance	4
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance	$ 22.77
Granted, Weighted Average Grant-Date Fair Value	30.66	$ 29.76
Vested, Weighted Average Grant-Date Fair Value	30.62
Forfeited or expired, Weighted Average Grant-Date Fair Value	0
Nonvested, Weighted Average Grant-Date Fair Value, ending balance	$ 27.08

XML

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, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	10	6
Weighted average grant-date fair value	$ 30.66	$ 29.76
Fair value of vested	$ 240	$ 183
Cash used to settle the obligation	$ 422	$ 359

XML

Segments and Geographic Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2017 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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Revenues	$ 375,438	$ 364,402	$ 759,452	$ 685,148
Percentage of revenues	100.00%	100.00%	100.00%	100.00%
Depreciation, net	$ 13,820	$ 11,960	$ 27,168	$ 22,744
Amortization of intangibles	5,250	5,263	10,481	8,890
Income (loss) from operations	11,290	13,402	37,304	33,672
Total other income (expense), net	(890)	(373)	(1,582)	(475)
Income taxes	(1,555)	(3,891)	(8,165)	(10,105)
Net income	8,845	9,138	27,557	23,092
Americas [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	$ 314,871	$ 305,211	$ 635,802	$ 567,287
Percentage of revenues	83.90%	83.80%	83.70%	82.80%
Depreciation, net	$ 11,842	$ 10,316	$ 23,310	$ 19,492
Amortization of intangibles	4,989	4,995	9,967	8,363
Income (loss) from operations	26,089	30,725	64,022	63,712
EMEA [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues	$ 60,540	$ 59,152	$ 123,607	$ 117,777
Percentage of revenues	16.10%	16.20%	16.30%	17.20%
Depreciation, net	$ 1,254	$ 1,162	$ 2,440	$ 2,326
Amortization of intangibles	261	268	514	527
Income (loss) from operations	2,163	2,896	7,743	6,306
Other Segments [Member]
Segment Reporting Information [Line Items]
Revenues	$ 27	$ 39	$ 43	$ 84
Percentage of revenues	0.00%	0.00%	0.00%	0.00%
Depreciation, net	$ 724	$ 482	$ 1,418	$ 926
Income (loss) from operations	(16,962)	(20,219)	(34,461)	(36,346)
Total other income (expense), net	(890)	(373)	(1,582)	(475)
Income taxes	$ (1,555)	$ (3,891)	$ (8,165)	$ (10,105)

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Other Income (Expense) - Schedule of Other Income (Expense), Net (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other Income (Expense) [Abstract]
Foreign currency transaction gains (losses)	$ (535)	$ 1,410	$ 644	$ 2,756
Gains (losses) on foreign currency derivative instruments not designated as hedges	1,097	(585)	397	(1,324)
Other miscellaneous income (expense)	269	242	642	188
Other income (expense)	$ 831	$ 1,067	$ 1,683	$ 1,620

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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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Related Party Transactions [Abstract]
Duration of lease	20 years
Payment to landlord under the lease terms		$ 0.1	$ 0.1	$ 0.2	$ 0.2