XML 48 R19.htm IDEA: XBRL DOCUMENT
v3.21.2

LEASES | 6 Months Ended
--- | ---
Jun. 30, 2021
LEASES [ABSTRACT] |
Leases | (11)LEASES ​ Operating leases are included in the Consolidated Balance Sheet as Operating lease assets, Current operating lease liabilities and Non-current operating lease liabilities. Finance leases are included in Property, plant and equipment, Other current liabilities and Other long-term liabilities in the Consolidated Balance Sheet. The Company primarily leases real estate and equipment under various arrangements that provide the Company the right of use for the underlying asset that require lease payments over the lease term. The Company determines the value of each lease by computing the present value of each lease payment using the interest rate implicit in the lease, if available; otherwise the Company estimates its incremental borrowing rate over the lease term. The Company determines its incremental borrowing rate based on its estimated credit risk with adjustments for each individual leases’ geographical risk and lease term. Operating lease assets also include prepaid rent and initial direct costs less any tenant improvements. The Company’s real estate portfolio typically includes one or more options to renew, with renewal terms that generally can extend the lease term from one to 10 years. The exercise of these lease renewal options is at the Company’s discretion and is included in the lease term only if the Company is reasonably certain to exercise. The Company also has service arrangements whereby it controls specific space provided by a third-party service provider. These arrangements meet the definition of a lease and are accounted for under ASC 842. Lease expense for operating leases is recognized on a straight-line basis over the lease term and is included in the Consolidated Statements of Comprehensive Income (Loss). The Company’s lease agreements do not contain any material residual value guarantees or restrictive guarantees. The components of lease expense for the three and six months ended June 30, 2021 and 2020 are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Location in Statements of | ​ | Three Months Ended June 30, | ​
Description | ​ | Comprehensive Income (Loss) |  | 2021 |  | 2020 |
Amortization of ROU assets - finance leases | ​ | Depreciation and amortization | ​ | $ | 1,710 | ​ | $ | 1,928 | ​
Interest on lease liabilities - finance leases | ​ | Interest expense | ​ | ​ | 36 | ​ | ​ | 52 |
Operating lease cost (cost resulting from lease payments) | ​ | Cost of services | ​ |  | 10,101 | ​ |  | 11,642 | ​
Operating lease cost (cost resulting from lease payments) | ​ | Selling, general and administrative | ​ | ​ | 721 | ​ | ​ | 858 | ​
Operating lease cost (cost resulting from lease payments) | ​ | Restructuring | ​ | ​ | 401 | ​ | ​ | — | ​
Operating lease cost | ​ | Impairment | ​ | ​ | 223 | ​ | ​ | — | ​
Operating lease cost (cost resulting from lease payments) | ​ | Other income (expense), net | ​ | ​ | 310 | ​ | ​ | 287 | ​
Short-term lease cost | ​ | Cost of services | ​ |  | 1,001 | ​ |  | 883 | ​
Variable lease cost (cost excluded from lease payments) | ​ | Cost of services | ​ | ​ | 319 | ​ | ​ | (284) | ​
Less: Sublease income | ​ | Selling, general and administrative | ​ | ​ | (214) | ​ | ​ | (212) | ​
Less: Sublease income | ​ | Other income (expense), net | ​ |  | (636) | ​ |  | (616) | ​
Total lease cost | ​ | ​ | ​ | $ | 13,972 |  | $ | 14,538 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Location in Statements of | ​ | Six Months Ended June 30, | ​
Description | ​ | Comprehensive Income (Loss) |  | 2021 |  | 2020 | ​
Amortization of ROU assets - finance leases | ​ | Depreciation and amortization | ​ | $ | 3,514 | ​ | $ | 3,844 | ​
Interest on lease liabilities - finance leases | ​ | Interest expense | ​ | ​ | 76 | ​ | ​ | 108 | ​
Operating lease cost (cost resulting from lease payments) | ​ | Cost of services | ​ |  | 20,540 | ​ |  | 23,680 | ​
Operating lease cost (cost resulting from lease payments) | ​ | Selling, general and administrative | ​ | ​ | 1,327 | ​ | ​ | 1,400 | ​
Operating lease cost (cost resulting from lease payments) | ​ | Restructuring | ​ | ​ | 641 | ​ | ​ | — | ​
Operating lease cost | ​ | Impairment | ​ | ​ | 1,920 | ​ | ​ | — | ​
Operating lease cost (cost resulting from lease payments) | ​ | Other income (expense), net | ​ | ​ | 620 | ​ | ​ | 529 | ​
Short-term lease cost | ​ | Cost of services | ​ |  | 1,967 | ​ |  | 1,880 | ​
Variable lease cost (cost excluded from lease payments) | ​ | Cost of services | ​ | ​ | 637 | ​ | ​ | (284) | ​
Less: Sublease income | ​ | Selling, general and administrative | ​ | ​ | (442) | ​ | ​ | (394) | ​
Less: Sublease income | ​ | Other income (expense), net | ​ |  | (1,312) | ​ |  | (1,112) | ​
Total lease cost | ​ | ​ | ​ | $ | 29,488 |  | $ | 29,651 | ​
​ Other supplementary information for the three and six months ended June 30, 2021 and 2020 are as follows (dollar values in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended June 30, | ​
​ |  | 2021 |  | 2020 |
Finance lease - operating cash flows | ​ | $ | 12 | ​ | $ | 17 | ​
Finance lease - financing cash flows | ​ | $ | 1,596 | ​ | $ | 1,735 | ​
Operating lease - operating cash flows (fixed payments) | ​ | $ | 13,176 | ​ | $ | 13,280 | ​
New ROU assets - operating leases | ​ | $ | 4,455 | ​ | $ | 247 | ​
Modified ROU assets - operating leases | ​ | $ | 182 | ​ | $ | 6,221 | ​
New ROU assets - finance leases | ​ | $ | 488 | ​ | $ | 320 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six Months Ended June 30, | ​
​ |  | 2021 |  | 2020 |
Finance lease - operating cash flows | ​ | $ | 26 | ​ | $ | 36 | ​
Finance lease - financing cash flows | ​ | $ | 3,388 | ​ | $ | 3,867 | ​
Operating lease - operating cash flows (fixed payments) | ​ | $ | 26,674 | ​ | $ | 27,417 | ​
New ROU assets - operating leases | ​ | $ | 7,817 | ​ | $ | 6,795 | ​
Modified ROU assets - operating leases | ​ | $ | 182 | ​ | $ | 6,221 | ​
New ROU assets - finance leases | ​ | $ | 583 | ​ | $ | 828 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2021 | ​ | December 31, 2020 | ​
Weighted average remaining lease term - finance leases | ​ | ​ | 2.33 years | ​ | ​ | 2.46 years | ​
Weighted average remaining lease term - operating leases | ​ | ​ | 3.54 years | ​ | ​ | 3.73 years | ​
Weighted average discount rate - finance leases | ​ | ​ | 1.75% | ​ | ​ | 1.64% | ​
Weighted average discount rate - operating leases | ​ | ​ | 6.72% | ​ | ​ | 6.95% | ​
​ Operating and financing lease right-of-use assets and lease liabilities within the Consolidated Balance Sheet as of June 30, 2021 and December 31, 2020 are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Description | Location in Balance Sheet | ​ | June 30, 2021 | ​ | December 31, 2020 |
Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating lease assets | Operating lease assets | ​ | $ | 106,735 | ​ | $ | 120,820 | ​
Finance lease assets | Property, plant and equipment, net | ​ |  | 9,724 | ​ |  | 12,659 | ​
Total leased assets | ​ | ​ | $ | 116,459 | ​ | $ | 133,479 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Current | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating | Current operating lease liabilities | ​ | $ | 42,891 | ​ | $ | 43,651 | ​
Finance | Other current liabilities | ​ | ​ | 4,676 | ​ | ​ | 6,193 | ​
Non-current | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating | Non-current operating lease liabilities | ​ | ​ | 83,146 | ​ | ​ | 98,277 | ​
Finance | Other long-term liabilities | ​ | ​ | 3,570 | ​ | ​ | 4,763 | ​
Total lease liabilities | ​ | ​ | $ | 134,283 | ​ | $ | 152,884 | ​
​ The future minimum operating lease and finance lease payments required under non-cancelable leases as of June 30, 2021 and December 31, 2020 are as follows (in thousands): June 30, 2021
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Operating |  | Sub-lease |  | Finance |
​ | ​ | Leases | ​ | Income | ​ | Leases |
Year 1 | ​ | $ | 48,756 | ​ | $ | (3,476) | ​ | $ | 4,675 | ​
Year 2 | ​ |  | 42,622 | ​ |  | (3,471) | ​ |  | 2,129 | ​
Year 3 | ​ |  | 23,187 | ​ |  | (2,828) | ​ |  | 1,335 | ​
Year 4 | ​ |  | 15,139 | ​ |  | (2,940) | ​ |  | 230 | ​
Year 5 | ​ |  | 4,752 | ​ |  | (1,960) | ​ |  | — | ​
Thereafter | ​ |  | 7,730 | ​ |  | — | ​ |  | — | ​
Total minimum lease payments | ​ | $ | 142,186 | ​ | $ | (14,675) | ​ | $ | 8,369 | ​
Less imputed interest | ​ | ​ | (16,149) | ​ | ​ | ​ | ​ | ​ | (123) | ​
Total lease liability | ​ | $ | 126,037 | ​ | ​ | ​ | ​ | $ | 8,246 | ​
​ December 31, 2020
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Operating |  | Sub-lease |  | Finance |
​ | ​ | Leases | ​ | Income | ​ | Leases |
Year 1 | ​ | $ | 51,120 | ​ | $ | (3,500) | ​ | $ | 6,237 | ​
Year 2 | ​ |  | 46,913 | ​ |  | (3,489) | ​ |  | 2,740 | ​
Year 3 | ​ |  | 31,085 | ​ |  | (3,123) | ​ |  | 1,631 | ​
Year 4 | ​ |  | 17,338 | ​ |  | (2,905) | ​ |  | 579 | ​
Year 5 | ​ |  | 8,288 | ​ |  | (2,940) | ​ |  | — | ​
Thereafter | ​ |  | 8,397 | ​ |  | (490) | ​ |  | — | ​
Total minimum lease payments | ​ | $ | 163,141 | ​ | $ | (16,447) | ​ | $ | 11,187 | ​
Less imputed interest | ​ | ​ | (21,213) | ​ | ​ | ​ | ​ | ​ | (231) | ​
Total lease liability | ​ | $ | 141,928 | ​ | ​ | ​ | ​ | $ | 10,956 | ​
​ In 2008, the Company sub-leased one of its customer engagement centers to a third party for the remaining term of the lease. The sub-lease began on January 1, 2009 and rental income will be recognized on a straight-line basis over the term of the sub-lease through 2026. In 2017, the Company sub-leased one of its office spaces for the remaining term of the original lease. The sub-lease began on November 6, 2017 and ended on May 31, 2021. In 2019, the Company sub-leased one of its office spaces for the remaining term of the original lease. The sub-lease began on March 1, 2019 and ends July 31, 2023. In 2020, the Company sub-leased one of its office spaces for the remaining term of the original lease. The sub-lease began on February 6, 2020 and ends June 14, 2023.

X
- Definition Lessee, Operating and Financing Leases [Text Block]. + References No definition available. + Details
Name: | ttec_LesseeOperatingAndFinancingLeasesTextBlock
Namespace Prefix: | ttec_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration