XML 63 R16.htm IDEA: XBRL DOCUMENT
v2.4.0.6

RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | 3 Months Ended
--- | ---
Mar. 31, 2013
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | (9) RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES Restructuring Charges During the three months ended March 31, 2013 and 2012, the Company undertook a number of restructuring activities primarily associated with reductions in the Company's capacity and workforce in its Customer Management Services, Customer Growth Services and Customer Strategy Services segments to better align the capacity and workforce with current business needs. During the second quarter of 2012, the Company made the decision to cease operations in Spain and terminated the contracts with its clients. The Company notified the employees and commenced severance procedures as required under Spanish law. The Company recorded $14.7 million of severance and $0.4 million of center closure expenses for the year ended December 31, 2012. As of the first quarter of 2013, $14.1 million was paid and the remaining $1.0 million was included in Other accrued expenses in the Consolidated Balance Sheets as of March 31, 2013. A summary of the expenses recorded in Restructuring, net in the accompanying Consolidated Statements of Comprehensive Income for the three months ended March 31, 2013 and 2012, respectively, is as follows (amounts in thousands):
|  |  | Three Months Ended March 31,
|  |  | 2013 |  | 2012
Reduction in force |  |  |  |  |
| Customer Management Services | $ | 694 |  | $ | 1,855
| Customer Growth Services |  | - |  |  | 103
| Customer Technology Services |  | - |  |  | -
| Customer Strategy Services |  | 157 |  |  | -
|  | Total | $ | 851 |  | $ | 1,958
A rollforward of the activity in the Company's restructuring accruals is as follows (amounts in thousands):
|  | Closure of Delivery Centers |  | Reduction in Force |  | Total
Balance as of December 31, 2012 | $ | - |  | $ | 4,079 |  | $ | 4,079
| Expense |  | - |  |  | 851 |  |  | 851
| Payments |  | - |  |  | (2,120) |  |  | (2,120)
| Changes in estimates |  | - |  |  | - |  |  | -
Balance as of March 31, 2013 | $ | - |  | $ | 2,810 |  | $ | 2,810
The remaining restructuring accruals are expected to be paid during 2013 and are all classified as current liabilities within O ther accrued expenses in the Consolidated Balance Sheet s. Impairment Losses During each of the periods presented, the Company evaluated the recoverability of its leasehold improvement assets at certain delivery centers. An asset is considered to be impaired when the anticipated undiscounted future cash flows of an asset group are estimated to be less than the asset group's carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. During the three months ended March 31, 2013 and 2012, the Company recognized no losses related to leasehold improvement assets. During the first quarter of 2012, the Company rebrand ed its Direct Alliance Corporation (“DAC”) subsidiary to Revana TM, t hus the $1.8 million DAC trade name was impaired as of March 31, 2012. This expense was included in the Impairment losses in the Consolidated Statements of Comprehensive Income.

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_RestructuringSettlementAndImpairmentProvisionsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration