XML 23 R11.htm IDEA: XBRL DOCUMENT v3.19.2
SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2019
SEGMENT INFORMATION [ABSTRACT]  
SEGMENT INFORMATION

(3)SEGMENT INFORMATION

During the second quarter of 2019, the Company finalized changes to the Company’s operating strategy and the way in which the Company assesses performance. In accordance with this change, the Company adjusted certain reporting relationships between the Chief Operating Decision Maker (“CODM”) and other members of management, updated the compensation metrics for senior management, and modified the internal financial reporting provided to the CODM and his direct reports consistent with this revised management and measurement structure. Accordingly, during the second quarter of 2019, the Company reevaluated the definition of the operating segments, reportable segments, and reporting units which resulted in a change to the reportable segments.  Effective June 30, 2019, the segment information will be reported consistent with these updated reportable segments comprised of TTEC Digital and TTEC Engage.

The Company reports the following two segments:

·

TTEC Digital designs, builds and delivers tech-enabled, insight-based and outcome-driven customer experience solutions through our professional services and suite of technology offerings. These solutions are critical to enabling and accelerating digital transformation for our clients.

o

Professional Services: Our management consulting practices deliver customer experience strategy, analytics, process optimization, and learning and performance services.

o

Technology Services: Our technology services design, integrate and operate highly scalable, digital omnichannel technology solutions in the cloud, on premise, or hybrid, including journey orchestration, automation and AI, knowledge management, and workforce productivity.

·

TTEC Engage provides the essential technologies, human resources, infrastructure and processes to operate customer care, acquisition, and fraud detection and prevention services.

o

Customer Care Services: Our customer care services provide turnkey contact center solutions, including digital omnichannel technologies, associate recruiting and training, facilities, and operational expertise to create exceptional customer experiences across all touchpoints. 

o

Customer Acquisition Services: Our customer growth and acquisition services optimize the buying journeys for acquiring new customers by leveraging technology and analytics to deliver personal experiences to increase the quantity and quality of leads and customers.

o

Fraud Prevention Services: Our digital fraud detection and prevention services provide the ability to proactively identify and prevent fraud, and ensure community content moderation and compliance.

The Company allocates to each segment its portion of corporate operating expenses. All intercompany transactions between the reported segments for the periods presented have been eliminated.

The following tables present certain financial data by segment (in thousands):

Three Months Ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

Depreciation

    

Income 

 

 

 

Gross

 

Intersegment

 

Net

 

&

 

from

 

 

 

Revenue

 

Sales

 

Revenue

 

Amortization

 

Operations

 

TTEC Digital

 

$

78,580

 

$

(61)

 

$

78,519

 

$

3,235

 

$

7,709

 

TTEC Engage

 

 

313,996

 

 

 —

 

 

313,996

 

 

13,815

 

 

15,164

 

Total

 

$

392,576

 

$

(61)

 

$

392,515

 

$

17,050

 

$

22,873

 

 

Three Months Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

Depreciation

    

Income 

 

 

 

Gross

 

Intersegment

 

Net

 

&

 

from

 

 

 

Revenue

 

Sales

 

Revenue

 

Amortization

 

Operations

 

TTEC Digital

 

$

52,619

 

$

(119)

 

$

52,500

 

$

2,082

 

$

6,764

 

TTEC Engage

 

 

297,353

 

 

 —

 

 

297,353

 

 

14,729

 

 

6,739

 

Total

 

$

349,972

 

$

(119)

 

$

349,853

 

$

16,811

 

$

13,503

 

 

Six Months Ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

Depreciation

    

Income 

 

 

 

Gross

 

Intersegment

 

Net

 

&

 

from

 

 

 

Revenue

 

Sales

 

Revenue

 

Amortization

 

Operations

 

TTEC Digital

 

$

144,621

 

$

(249)

 

$

144,372

 

$

5,543

 

$

15,468

 

TTEC Engage

 

 

642,499

 

 

 —

 

 

642,499

 

 

28,250

 

 

39,497

 

Total

 

$

787,120

 

$

(249)

 

$

786,871

 

$

33,793

 

$

54,965

 

 

Six Months Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

Depreciation

    

Income 

 

 

 

Gross

 

Intersegment

 

Net

 

&

 

from

 

 

 

Revenue

 

Sales

 

Revenue

 

Amortization

 

Operations

 

TTEC Digital

 

$

102,687

 

$

(119)

 

$

102,568

 

$

4,234

 

$

12,110

 

TTEC Engage

 

 

622,534

 

 

 —

 

 

622,534

 

 

30,501

 

 

26,334

 

Total

 

$

725,221

 

$

(119)

 

$

725,102

 

$

34,735

 

$

38,444

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

Six Months Ended 

 

 

 

June 30,

 

June 30,

 

 

 

2019

    

2018

    

2019

    

2018

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

TTEC Digital

 

$

5,655

 

$

1,187

 

$

9,396

 

$

1,342

 

TTEC Engage

 

 

9,573

 

 

8,188

 

 

19,032

 

 

15,541

 

Total

 

$

15,228

 

$

9,375

 

$

28,428

 

$

16,883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2019

    

December 31, 2018

 

Total Assets

 

 

 

 

 

 

 

 

TTEC Digital

 

 

$

249,291

 

$

222,977

 

TTEC Engage

 

 

 

930,050

 

 

831,531

 

Total

 

 

$

1,179,341

 

$

1,054,508

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2019

    

December 31, 2018

 

Goodwill

 

 

 

 

 

 

 

 

TTEC Digital

 

 

$

66,155

 

$

66,158

 

TTEC Engage

 

 

 

139,603

 

 

138,475

 

Total

 

 

$

205,758

 

$

204,633

 

 

 

 

 

 

 

 

 

 

 

The following table presents revenue based upon the geographic location where the services are provided (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

    

2019

    

2018

    

2019

    

2018

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

235,733

 

$

188,744

 

$

472,700

 

$

398,592

 

Philippines

 

 

91,401

 

 

85,442

 

 

184,580

 

 

174,647

 

Latin America

 

 

25,054

 

 

27,224

 

 

49,190

 

 

57,722

 

Europe / Middle East / Africa

 

 

15,610

 

 

18,469

 

 

31,651

 

 

34,440

 

Asia Pacific / India

 

 

14,155

 

 

14,139

 

 

26,980

 

 

27,576

 

Canada

 

 

10,562

 

 

15,835

 

 

21,770

 

 

32,125

 

Total

 

$

392,515

 

$

349,853

 

$

786,871

 

$

725,102