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GOODWILL
12 Months Ended
Dec. 31, 2013
GOODWILL [ABSTRACT]  
GOODWILL

(6)       GOODWILL

Goodwill consisted of the following (amounts in thousands):

  December 31, 2012 Acquisitions / Adjustments Impairments Deconsolidation of Subsidiary Effect of Foreign Currency December 31, 2013
                   
Customer Management Services$ 20,288 $ - $ - $ - $ (469) $ 19,819
Customer Growth Services  24,439   5,689   -   -   -   30,128
Customer Technology Services  42,153   478   -   -   78   42,709
Customer Strategy Services  11,361   -   -   (1,274)   -   10,087
 Total $ 98,241 $ 6,167 $ - $ (1,274) $ (391) $ 102,743
                   
  December 31, 2011 Acquisitions / Adjustments Impairments Deconsolidation of Subsidiary Effect of Foreign Currency December 31, 2012
                   
Customer Management Services$ 20,594 $ - $ - $ - $ (306) $ 20,288
Customer Growth Services  24,439   -   -   -   -   24,439
Customer Technology Services  18,516   23,637   -   -   -   42,153
Customer Strategy Services  7,295   4,066   -   -   -   11,361
 Total $ 70,844 $ 27,703 $ - $ - $ (306) $ 98,241
                   

Impairment

The Company performs a goodwill impairment test on at least an annual basis. The Company conducts its annual goodwill impairment test during the fourth quarter, or more frequently, if indicators of impairment exist. As discussed in Note 1 the Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If an entity determines that as a result of the qualitative assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative test is required. Otherwise, no further testing is required. As part of this initial assessment, the Company also completes a fair value assessment of each reporting unit using a market based valuation approach. The reason that this fair value assessment is completed is to reconcile the aggregate fair values of the Company's reporting units to the Company's market capitalization. The calculation of fair value using a market based approach may also serve as an additional indicator of impairment when completing the qualitative assessment.

The Company has nine reporting units with goodwill. The Company performed a qualitative assessment of goodwill for eight of its reporting units in the fourth quarter 2013. Of these eight reporting units, five reporting units were substantially in excess of its estimated carrying value as of the most recent quantitative analysis of goodwill impairment performed at various times between the fourth quarter of 2010 and the second quarter of 2013. The remaining three reporting units were substantially in excess of its estimated carrying value since the reporting units' acquisition dates, which ranged from May 2011 to August 2013. There have been no triggering events or changes in circumstances since the quantitative analysis or acquisition dates to indicate that the fair value of any of these reporting units would be less than their carrying amount. In assessing the qualitative factors of the eight reporting units, the Company considered factors including but not limited to, economic, market and industry conditions, cost factors, changes in business strategy, earnings multiples, and budgeted-to-actual performance of revenue and gross margin from prior year and/or from the date of acquisition. Based on this assessment, the Company concluded that it was more likely than not that the fair value of each of the eight reporting units exceeded its carrying value. As such, it was not necessary to perform a quantitative impairment analysis, and the Company concluded that these reporting units were not impaired as of December 31, 2013 and 2012.

For the Company's remaining reporting unit, a quantitative assessment was performed. The quantitative assessment of goodwill includes comparing a reporting unit's calculated fair value to its carrying value. The fair value for this reporting unit was calculated using an asset based approach since the reporting unit is in the development stage and consists primarily of acquired and developed software. The calculation of fair value using an asset based approach requires significant judgments including the rate of obsolescence for similar technology and the discount rate associated with the risks inherent in investing in new technology. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment. As of December 31, 2013, the Company concluded that the fair value of this reporting unit using an asset based approach was substantially in excess of its carrying value and the goodwill was not impaired.