GOODWILL

12 Months Ended

Dec. 31, 2020

GOODWILL [ABSTRACT]

GOODWILL.

(6)GOODWILL

Goodwill consisted of the following (in thousands):

							Effect of
	December 31,		Acquisitions /				Foreign		December 31,
	2019		Adjustments		Impairments		Currency		2020
TTEC Digital	$	66,275	$	59,341	$	—	$	2,595	$	128,211
TTEC Engage		235,419		(254)		—		126		235,291
Total	$	301,694	$	59,087	$	—	$	2,721	$	363,502

							Effect of
	December 31,		Acquisitions /				Foreign		December 31,
	2018		Adjustments		Impairments		Currency		2019
TTEC Digital	$	66,158	$	—	$	—	$	117	$	66,275
TTEC Engage		138,475		96,993		—		(49)		235,419
Total	$	204,633	$	96,993	$	—	$	68	$	301,694

Impairment

The Company has three reporting units with goodwill and 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.

During the third quarter 2020, the Company reassessed the reporting units within the TTEC Digital segment based on a reorganization of the reporting structure within this segment. The Company has changed how it views and assesses performance of the components within the segment as the business has evolved and multiple recent acquisitions have been incorporated. After evaluation, The Company will maintain two reporting units within TTEC Digital but these include different components than previously included. Given the change in reporting units, the Company conducted an impairment test before and after the change, and it was concluded that the fair value of the reporting units exceeded the carrying value on both testing dates. With the change in reporting units, the Company performed a relative fair value valuation calculation to allocate the Company’s historical goodwill between the two reporting units based on the shift in components. The resulting reallocation of goodwill was not material.

For the annual goodwill impairment analysis, the Company qualitatively assessed each of the three reporting units  to determine whether it was necessary to perform a goodwill impairment test. In evaluating whether it is more likely than not that the fair value of the reporting units are less than their carrying amounts, the entity assessed the following relevant events and circumstances for each of the three reporting units; macroeconomic conditions, industry and market considerations, cost factors, changes in management or key personnel, changes in strategy, changes to the composition of each reporting unit, and the Company’s share price relative to the industry and their peers. In addition, the Company identified the relevant assumptions in the most recent fair value analysis for each of the reporting units and then evaluated whether those assumptions had been affected by events or circumstances that were positive, negative or neutral. As of December 1, 2020, the date of the annual impairment test, the Company concluded that for all three of the reporting units the qualitative analysis concluded that the events and circumstances evaluated were primarily positive in nature thus it is not more likely than not that each of the three reporting unit’s fair values respectively are less than their carrying amounts.