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GOODWILL
3 Months Ended
Mar. 31, 2013
GOODWILL [ABSTRACT]  
GOODWILL

(5)       GOODWILL

Goodwill consisted of the following (amounts in thousands):

  December 31, 2012 Acquisitions Impairments Effect of Foreign Currency March 31, 2013
                
Customer Management Services$ 20,288 $ -  $ -  $ 34 $ 20,322
Customer Growth Services  24,439   -    -    -    24,439
Customer Technology Services  38,591   478   -    -    39,069
Customer Strategy Services  11,361   -    -    -    11,361
 Total$ 94,679 $ 478 $ -  $ 34 $ 95,191
                

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.

As of December 2012, the Company had one reporting unit with goodwill of $7.3 million and a calculated fair value which exceeded its carrying value by 4%. At March 31, 2013, the Company updated its quantitative assessment of this reporting unit's fair value using an income based approach. Key assumptions used in the updated fair value calculation include, but are not limited to, a perpetuity growth rate of 7.0% based on the current inflation rate combined with the GDP growth rate for the reporting unit's geographical region and a discount rate of 25.5%, which is equal to the reporting unit's equity risk premium adjusted for its size and company specific risk factors. Estimated future cash flows under the income approach are based on the Company's internal business plan and adjusted as appropriate for the Company's view of market participant assumptions. The current business plan assumes the occurrence of certain events in the future, such as realignment of operations and reduction of general and administrative costs. Significant differences in the outcome of some or all of these assumptions may impact the calculated fair value of this reporting unit resulting in impairment to goodwill in a future period. As of March 31, 2013, the updated fair value of this reporting unit continues to exceed its carrying value by 4%. The Company will continue to review the calculated fair value of this reporting unit until the fair value is substantially in excess of its carrying value.