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GOODWILL
6 Months Ended
Jun. 30, 2014
GOODWILL [ABSTRACT]  
GOODWILL

(5)       GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill consisted of the following (in thousands):

  December 31, 2013 Acquisitions/ Adjustments Impairments Effect of Foreign Currency June 30, 2014
                
Customer Management Services$ 19,819 $ 7,208 $ - $ 213 $ 27,240
Customer Growth Services  30,128   267   -   -   30,395
Customer Technology Services  42,709   -   -   -   42,709
Customer Strategy Services  10,087   350   -   -   10,437
 Total$ 102,743 $ 7,825 $ - $ 213 $ 110,781
                

The Company performs a goodwill impairment assessment on at least an annual basis. The Company conducts its annual goodwill impairment assessment during the fourth quarter, or more frequently, if indicators of impairment exist.

The Company has identified a triggering event based on the continued decline during the second quarter of 2014 in operating results of the TSG reporting unit within the CTS segment. At June 30, 2014, the Company completed an interim quantitative assessment of this reporting unit's fair value using an income based approach. Key assumptions used in the fair value calculation include, but are not limited to, a perpetuity growth rate of 3.0% based on the current inflation rate combined with the GDP growth rate for the reporting unit's geographical region and a discount rate of 19.1%, which is equal to the reporting unit's equity risk premium adjusted for its size and company specific risk factors. Estimated future cash flows under the income approach are based on the Company's internal business plan and adjusted as appropriate for the Company's view of market participant assumptions. The current business plan assumes the occurrence of certain events in the future, such as realignment of operations and reduction of general and administrative costs. Significant differences in some or all of these assumptions may impact the calculated fair value of this reporting unit resulting in impairment to goodwill in a future period. The goodwill attributable to this reporting unit is $23.0 million. As of June 30, 2014, the fair value of this reporting unit exceeds its carrying value by 8%. The Company will continue to review the calculated fair value of this reporting unit until the fair value is substantially in excess of its carrying value.