Note 6 - Impairment Losses and Restructuring Exit Cost

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Restructuring, Impairment, and Other Activities Disclosure [Text Block]

Impairment Loss

During the first quarter of 2020, the Company reviewed the carrying value of goodwill due to the events and circumstances surrounding the COVID-19 pandemic and performed interim impairment testing on the goodwill balances of its reporting units. Accordingly, a goodwill impairment charge of $15,820, $4,332 and $2,556 was recorded for the India, South Africa and Australia reporting units, respectively.

Restructuring/Exit Cost

The table below summarizes the balance of accrued restructuring, other acquisition related cost and involuntary termination cost, which is included in accrued expenses in our consolidated balance sheets, and the changes during the nine months ended September 30, 2020: 

	Employee related			Facilities related			Total
Balance as of December 31, 2019	$	1,326		$	514		$	1,840
Accruals/(reversals)		1,497			340			1,837
Payments		(2,823	)		(743	)		(3,566	)
Balance as of September 30, 2020	$	-		$	111		$	111

Employee related

In 2020, under a company-wide restructuring plan, we eliminated a number of positions which were considered redundant coupled with change in key management personnel. We recognized provision for employee related costs across a number of geographies and due payments have been made.

Facilities related

In 2018, we terminated various leases in the United States and the Philippines due to closedown of the facilities. We recognized provision for the remaining costs associated with the leases. We expect to pay the remaining costs of $111 by the end of the first quarter of 2021.