XML 59 R12.htm IDEA: XBRL DOCUMENT v2.4.1.9
GOODWILL
3 Months Ended
Mar. 31, 2015
GOODWILL [ABSTRACT]  
GOODWILL

(5)       GOODWILL

Goodwill consisted of the following (in thousands):

  December 31, 2014 Acquisitions/ Adjustments Impairments Effect of Foreign Currency March 31, 2015
                
Customer Management Services$ 25,871 $ - $ - $ (461) $ 25,410
Customer Growth Services  30,395   -   -   -   30,395
Customer Technology Services  42,709   -   -   -   42,709
Customer Strategy Services  29,730   68   -   (724)   29,074
 Total$ 128,705 $ 68 $ - $ (1,185) $ 127,588
                

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 concluded that goodwill for all reporting units was not impaired at December 1, 2014. While no impairment indicators were identified, due to the small margin of fair value in excess of carrying value for two reporting units, Revana (approximately 6%) and WebMetro (approximately 11%), these reporting units remain at considerable risk for future impairment if projected operating results are not met or other inputs into the fair value measurement change.

At March 31, 2015, the Company updated its quantitative assessment of these reporting units fair value using an income based approach. The determination of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term growth rates for the businesses, the useful lives over which the cash flows will occur and determination of appropriate discount rates (based in part on 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. As of March 31, 2015, the updated fair values continue to exceed the carrying values for Revana (approximately 12%) and WebMetro (approximately 17%). The Company will continue to review the calculated fair value of these reporting units until the fair value is substantially in excess of its carrying value.