QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2011

QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract]

QUARTERLY FINANCIAL DATA (UNAUDITED)

(24)       QUARTERLY FINANCIAL DATA (UNAUDITED)

The following tables present certain quarterly financial data for the year ended December 31, 2011 (amounts in thousands except per share amounts).

				First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Revenue				$	280,979	$	293,636	$	304,235	$	300,538
Cost of services					199,121		210,358		220,795		218,088
Selling, general and administrative					47,801		47,283		43,445		50,273
Depreciation and amortization					11,598		11,423		11,807		10,061
Restructuring charges, net					739		(57)		1,616		1,353
Impairment losses					230		-		-		-
	Income from operations				21,490		24,629		26,572		20,763
		Other income (expense)			(270)		(1,276)		(633)		279
		(Provision) benefit for income taxes			(9,849)		(129)		496		(3,797)
		Non-controlling interest			(898)		(1,007)		(1,064)		(1,132)
			Net income attributable to TeleTech stockholders	$	10,473	$	22,217	$	25,371	$	16,113
Weighted average shares outstanding
	Basic				57,190		56,713		56,476		56,309
	Diluted				58,797		57,974		57,748		57,500
Net income per share attributable to TeleTech stockholders
	Basic			$	0.18	$	0.39	$	0.45	$	0.29
	Diluted			$	0.18	$	0.38	$	0.44	$	0.28

Included in Cost of services and selling, general and administrative expenses in the third quarter is a $2.8 million reduction for variable incentive compensation.

Included in the Provision for Income Taxes for the first and fourth quarter is an increase of $9.0 million and a decrease of $0.4 million respectively related to the adverse decision by the Canadian Revenue Agency (“CRA”) in regards to the Company's attempt to recover taxes paid to Canada with respect to the years 2001 and 2002.  Also included in the Provision for income taxes in the first, second and third quarter is a reduction in expense related to the mediated settlement reached with the IRS concerning tax refund claims of $2.9 million, $5.7 million and $3.0 million respectively.  Also included in the third quarter is a $1.4 million benefit related to the Company's 2010 foreign earnings repatriation.

The following tables present certain quarterly financial data for the year ended December 31, 2010 (amounts in thousands except per share amounts).

				First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Revenue				$	271,526	$	271,927	$	271,005	$	280,448
Cost of services					194,618		198,194		193,996		202,889
Selling, general and administrative					43,408		39,741		40,572		42,091
Depreciation and amortization					12,724		12,946		12,452		12,096
Restructuring charges, net					1,469		1,304		3,579		7,124
Impairment losses					-		679		327		952
	Income from operations				19,307		19,063		20,079		15,296
		Other income (expense)			(211)		332		7,295		808
		Provision for income taxes			(5,054)		(5,071)		(7,586)		(10,720)
		Non-controlling interest			(755)		(922)		(1,118)		(869)
			Net income attributable to TeleTech stockholders	$	13,287	$	13,402	$	18,670	$	4,515
Weighted average shares outstanding
	Basic				61,877		61,117		59,808		58,690
	Diluted				63,483		62,317		61,028		60,369
Net income per share attributable to TeleTech stockholders
	Basic			$	0.21	$	0.22	$	0.31	$	0.08
	Diluted			$	0.21	$	0.22	$	0.31	$	0.07

Included in Revenue for the first quarter is a $2.0 million reduction for disputed service delivery issues which occurred in 2009.

Included in Selling, general and administrative for the second and fourth quarters, respectively, is a decrease of $0.3 million and $1.1 million due to change in estimates relating to self-insurance liabilities.

Included in Other income (expense) for the third quarter is a $5.9 million gain related to the settlement of a Newgen legal claim.

Included in Provision for income taxes for the third quarter is a $2.3 million expense related to the gain described above.

Included in the Provision for income taxes for the fourth quarter is a $5.6 million expense related repatriation of foreign earnings previously considered permanently invested outside the U.S., an increase of $2.5 million in the U.S. deferred tax liability related to foreign tax assets that can no longer offset taxable income in more than one jurisdiction, an increase of $6.6 million in the deferred tax valuation allowance of which $3.7 million is related to certain European markets, and a $2.3 million expense related to our legal settlement included in Other income (expense) and $0.7 million in other items, offset by a $4.0 million benefit related to foreign tax planning strategies associated with the International operations.