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RESTRUCTURING CHARGES, INTEGRATION CHARGES AND IMPAIRMENT LOSSES | 9 Months Ended
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Sep. 30, 2017
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | (9)RESTRUCTURING CHARGES, INTEGRATION CHARGES AND IMPAIRMENT LOSSES Restructuring Charges During the three and nine months ended September 30, 2017 and 2016, the Company continued restructuring activities primarily associated with reductions in the Company’s capacity, workforce and related management in several of the segments to better align the capacity and workforce with current business needs. During the three and nine months ended September 30, 2017, several restructuring activities were completed regarding the purchase of Connextions (see Note 2). Several of the delivery centers that were included in the purchase will be closed over the next few quarters. During the second quarter of 2017, a $1.7 million severance accrual was recorded in relation to these closures and included in the Consolidated Statements of Comprehensive Income (Loss) for the quarter ended June 30, 2017. In conjunction with closing one delivery center, a $0.6 million termination fee was recorded in the third quarter of 2017. During the third quarter of 2017, the severance accrual was reviewed and a reversal of $0.7 million was recorded as of September 30, 2017. These charges and reversals were included in the Consolidated Statements of Comprehensive Income (Loss) during the quarter ended September 30, 2017. A summary of the expenses recorded in Restructuring and integration charges, net in the accompanying Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2017 and 2016, respectively, is as follows (in thousands):
|  | Three Months Ended |  | Nine Months Ended |
|  | September 30, |  | September 30, |
|  | 2017 |  | 2016 |  | 2017 |  | 2016 |
Reduction in force |  |  |  |  |  |  |  |  |  |  |  |  |
Customer Management Services |  | $ | (213) |  | $ | 2,485 |  | $ | 1,548 |  | $ | 2,482 |
Customer Growth Services |  |  | — |  |  | 108 |  |  | — |  |  | 108 |
Customer Technology Services |  |  | — |  |  | 314 |  |  | 93 |  |  | 324 |
Customer Strategy Services |  |  | 13 |  |  | 82 |  |  | 13 |  |  | 92 |
Total |  | $ | (200) |  | $ | 2,989 |  | $ | 1,654 |  | $ | 3,006 |
|  | Three Months Ended |  | Nine Months Ended |
|  | September 30, |  | September 30, |
|  | 2017 |  | 2016 |  | 2017 |  | 2016 |
Facility exit and other charges |  |  |  |  |  |  |  |  |  |  |  |  |
Customer Management Services |  | $ | 600 |  | $ | 699 |  | $ | 642 |  | $ | 852 |
Customer Growth Services |  |  | — |  |  | — |  |  | — |  |  | — |
Customer Technology Services |  |  | — |  |  | — |  |  | 84 |  |  | 33 |
Customer Strategy Services |  |  | 21 |  |  | — |  |  | 21 |  |  | — |
Total |  | $ | 621 |  | $ | 699 |  | $ | 747 |  | $ | 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, 2016 |  | $ | 1,468 |  | $ | 98 |  | $ | 1,566 |
Expense |  |  | 2,384 |  |  | 747 |  |  | 3,131 |
Payments |  |  | (987) |  |  | (841) |  |  | (1,828) |
Change due to foreign currency |  |  | (23) |  |  | — |  |  | (23) |
Change in estimates |  |  | (730) |  |  | — |  |  | (730) |
Balance as of September 30, 2017 |  | $ | 2,112 |  | $ | 4 |  | $ | 2,116 |
The remaining restructuring and other accruals are expected to be paid or extinguished during the next twelve months and are all classified as current liabilities within Other accrued expenses in the Consolidated Balance Sheets. Integration Charges During the three months ended September 30, 2017, as a result of the Connextions acquisition, certain integration activities were completed and $5.6 million of additional expenses were incurred and paid. These integration activities included the hiring, training and licensing of a group of employees at new delivery centers as one of the acquired centers was closed during the third quarter of 2017 and one of the acquired centers will be closed during the fourth quarter of 2017. The Company has also incurred significant expenses related to the integration of the IT systems and has paid duplicative software costs and facilities expenses for several areas during the transition period.

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- 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 FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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- References No definition available. + Details
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