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RESTRUCTURING CHARGES, INTEGRATION CHARGES AND IMPAIRMENT LOSSES | 9 Months Ended
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Sep. 30, 2018
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, 2018 and 2017, 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 2017, several restructuring activities were completed related to the purchase of Connextions (see Note 2) including the closure of two delivery centers that came with the acquisition. During 2017, a net $0.4 million severance accrual was recorded in relation to these closures. In conjunction with closing these two delivery centers, a $0.6 million termination fee and a $1.4 million net lease liability and applicable expenses were recorded as of December 31, 2017. These net charges were included in the Consolidated Statements of Comprehensive Income (Loss) during the year ended December 31, 2017. During the third quarter 2018, the Company opted to execute an early termination clause for a center in the U.S. and has expensed $1.6 million which is included in the Restructuring and integration costs, net on the Consolidated Statements of Comprehensive Income (Loss). 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, 2018 and 2017, respectively, is as follows (in thousands):
|  | Three Months Ended |  | Nine Months Ended |
|  | September 30, |  | September 30, |
|  | 2018 |  | 2017 |  | 2018 |  | 2017 |
Reduction in force |  |  |  |  |  |  |  |  |  |  |  |  |
Customer Management Services |  | $ | 97 |  | $ | (213) |  | $ | 437 |  | $ | 1,548 |
Customer Growth Services |  |  | — |  |  | — |  |  | — |  |  | — |
Customer Technology Services |  |  | — |  |  | — |  |  | — |  |  | 93 |
Customer Strategy Services |  |  | 82 |  |  | 13 |  |  | 133 |  |  | 13 |
Total |  | $ | 179 |  | $ | (200) |  | $ | 570 |  | $ | 1,654 |
|  | Three Months Ended |  | Nine Months Ended |
|  | September 30, |  | September 30, |
|  | 2018 |  | 2017 |  | 2018 |  | 2017 |
Facility exit and other charges |  |  |  |  |  |  |  |  |  |  |  |  |
Customer Management Services |  | $ | 2,462 |  | $ | 600 |  | $ | 3,313 |  | $ | 642 |
Customer Growth Services |  |  | 75 |  |  | — |  |  | 716 |  |  | — |
Customer Technology Services |  |  | — |  |  | — |  |  | — |  |  | 84 |
Customer Strategy Services |  |  | — |  |  | 21 |  |  | — |  |  | 21 |
Total |  | $ | 2,537 |  | $ | 621 |  | $ | 4,029 |  | $ | 747 |
A rollforward of the activity in the Company’s restructuring accrual is as follows (in thousands):
|  | Reduction |  | Facility Exit and |  |  |
|  | in Force |  | Other Charges |  | Total |
Balance as of December 31, 2017 |  | $ | 694 |  | $ | 1,409 |  | $ | 2,103 |
Expense |  |  | 754 |  |  | 4,029 |  |  | 4,783 |
Payments |  |  | (919) |  |  | (2,164) |  |  | (3,083) |
Change due to foreign currency |  |  | (181) |  |  | — |  |  | (181) |
Change in estimates |  |  | (184) |  |  | — |  |  | (184) |
Balance as of September 30, 2018 |  | $ | 164 |  | $ | 3,274 |  | $ | 3,438 |
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 third and fourth quarters of 2017, as a result of the Connextions acquisition, certain integration activities were completed and $5.6 million and $3.9 million of additional expenses were incurred and paid, respectively. 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 was closed during the fourth quarter of 2017. In connection with these center closures, leasehold improvements of $3.5 million were written off as a related integration expense. 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. Impairment Losses During each of the periods presented, the Company evaluated the annual recoverability of its leasehold improvement assets at certain customer engagement 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, 2018, the Company recognized impairment losses related to leasehold improvement assets of zero and $1.1 million, respectively, in its CMS segment. During the three and nine months ended September 30, 2017, the Company recognized no impairment losses related to leasehold improvement assets.

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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://fasb.org/us-gaap/role/ref/legacyRef -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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