RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES

9 Months Ended

Sep. 30, 2016

RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract]

RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES

(9)RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES

Restructuring Charges

During the three and nine months ended September 30, 2016 and 2015, the Company continued restructuring activities primarily associated with reductions in the Company’s capacity, workforce and related management in all of the segments to better align the capacity and workforce with current business needs.

A summary of the expenses recorded in Restructuring, net in the accompanying Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2016 and 2015, respectively, is as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015

Reduction in force
Customer Management Services	$	2,485	$	516	$	2,482	$	1,331
Customer Growth Services		108		—		108		—
Customer Technology Services		314		13		324		13
Customer Strategy Services		82		93		92		285
Total	$	2,989	$	622	$	3,006	$	1,629


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015

Facility exit and other charges
Customer Management Services	$	699	$	—	$	852	$	—
Customer Growth Services		—		—		—		—
Customer Technology Services		—		—		33		—
Customer Strategy Services		—		—		—		—
Total	$	699	$	—	$	885	$	—

A rollforward of the activity in the Company’s restructuring accruals is as follows (in thousands):


	Reduction		Facility Exit and
	in Force		Other Charges		Total

Balance as of December 31, 2015	$	806	$	—	$	806
Expense		3,220		885		4,105
Payments		(1,229)		(712)		(1,941)
Change due to foreign currency		(77)		—		(77)
Change in estimates		(215)		—		(215)
Balance as of September 30, 2016	$	2,505	$	173	$	2,678

The remaining restructuring accruals are expected to be paid or extinguished during 2016 or 2017 and are all classified as current liabilities within Other accrued expenses in the Consolidated Balance Sheets.

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 its 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 and nine months ended September 30, 2016 and 2015, the Company recognized no losses related to leasehold improvement assets.