Fair Value

9 Months Ended

Sep. 30, 2011

Fair Value [Abstract]

Fair Value

Note 5. Fair Value

The Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2011 subject to the requirements of ASC 820 consist of the following (in thousands):

	Fair Value Measurements at September 30, 2011 Using:
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets For		Observable		Unobservable
	Balance at		Identical Assets		Inputs		Inputs
	September 30, 2011		Level (1)		Level (2)		Level (3)
Assets:
Money market funds and open-end mutual funds included in “Cash and cash equivalents"(1)	$	36,115	$	36,115	$	—	$	—
Money market funds and open-end mutual funds in “Deferred charges and other assets"(1)		1,118		1,118		—		—
Foreign currency forward contracts(2)		3,090		—		3,090		—
Foreign currency option contracts (2)		236		—		236		—
Equity investments held in a rabbi trust for the Deferred Compensation Plan (3)		2,502		2,502		—		—
Debt investments held in a rabbi trust for the Deferred Compensation Plan(3)		1,249		1,249		—		—
Guaranteed investment certificates(4)		65		—		65		—
	$	44,375	$	40,984	$	3,391	$	—
Liabilities:
Foreign currency forward contracts(5)	$	1,429	$	—	$	1,429	$	—
	$	1,429	$	—	$	1,429	$	—

(1)	In the accompanying Condensed Consolidated Balance Sheet.
(2)	Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheet. See Note 7.
(3)	Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheet. See Note 8.
(4)	Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheet.
(5)	Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheet. See Note 7.

The Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2010 subject to the requirements of ASC 820 consist of the following (in thousands):

	Fair Value Measurements at December 31, 2010 Using:
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets For		Observable		Unobservable
	Balance at		Identical Assets		Inputs		Inputs
	December 31, 2010		Level (1)		Level (2)		Level (3)
Assets:
Money market funds and open-end mutual funds included in “Cash and cash equivalents” (1)	$	5,893	$	5,893	$	—	$	—
Money market funds and open-end mutual funds in “Deferred charges and other assets” (1)		747		747		—		—
Foreign currency forward contracts (2)		1,283		—		1,283		—
Foreign currency option contracts (2)		4,951		—		4,951		—
Equity investments held in a rabbi trust for the Deferred Compensation Plan (3)		2,647		2,647		—		—
Debt investments held in a rabbi trust for the Deferred Compensation Plan (3)		789		789		—		—
U.S. Treasury Bills held in a rabbi trust for the former ICT chief executive officer (3)		118		118		—		—
Guaranteed investment certificates (4)		53		—		53		—
	$	16,481	$	10,194	$	6,287	$	—
Liabilities:
Foreign currency forward contracts (5)	$	735	$	—	$	735	$	—
	$	735	$	—	$	735	$	—

(1)	In the accompanying Condensed Consolidated Balance Sheet.
(2)	Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheet. See Note 7.
(3)	Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheet. See Note 8.
(4)	Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheet.
(5)	Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheet. See Note 7.

Certain assets, under certain conditions, are measured at fair value on a nonrecurring basis utilizing Level 3 inputs as described in Note 1, Business, Basis of Presentation and Summary of Significant Accounting Policies, like those associated with acquired businesses, including goodwill and other intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if one or more of these assets was determined to be impaired. The Company’s assets measured at fair value on a nonrecurring basis (no liabilities) as of September 30, 2011 subject to the requirements of ASC 820 consist of the following (in thousands):

			Three Months			Nine Months					Three Months			Nine Months
			Ended			Ended					Ended			Ended
			September 30,			September 30,					September 30,			September 30,
			2011			2011					2010			2010
	Balance at		Total			Total			Balance at		Total			Total
	September 30,		Impairment			Impairment			December 31,		Impairment			Impairment
	2011		(Losses)			(Losses)			2010		(Losses)			(Losses)
Assets:
Americas:
Property and equipment, net (1)	$	82,435	$	(38	)	$	(764	)	$	99,089	$	(3,103	)	$	(3,103	)
EMEA:
Goodwill (1)		—		—			—			—		(84	)		(84	)
Intangibles, net (1)		—		—			—			—		(278	)		(278	)
		—		—			—			—		(362	)		(362	)
Property and equipment, net (1)		13,164		—			—			14,614		—			—
	$	95,599	$	(38	)	$	(764	)	$	113,703	$	(3,465	)	$	(3,465	)

⁽¹⁾ See Note 1 for additional information regarding the fair value measurement.

During the three and nine months ended September 30, 2011, in connection with its periodic review for impairment, the Company determined that the carrying value of certain long-lived assets, primarily leasehold improvements, in one of its underutilized customer contact management centers in the U.S. (a component of the Americas’ segment), were no longer recoverable and recorded an impairment charge of less than $0.1 million. The impairment charge represented the amount by which the carrying value exceeded the fair value of these assets which cannot be redeployed to other locations.

In addition, during the nine months ended September 30, 2011 in connection with the Third Quarter 2010 Exit Plan within the Americas segment, as discussed more fully in Note 4, Costs Associated with Exit or Disposal Activities, the Company recorded an impairment charge of $0.7 million, resulting from a change in assumptions related to the redeployment of property and equipment.

Based on actual and forecasted operating results and deterioration of the related customer base in the Company’s United Kingdom operations during the quarter ended September 30, 2010, the EMEA segment recorded an impairment loss of $0.1 million on goodwill and $0.3 million on intangibles (primarily customer relationships) during the three and nine months ended September 30, 2010.

During the three and nine months ended September 30, 2010, in connection with its periodic review for impairment, the Company determined that the carrying value of certain long-lived assets, primarily leasehold improvements, in one of its underutilized customer contact management centers in Argentina (a component of the Americas’ segment), were no longer recoverable and recorded an impairment charge of $0.5 million. The impairment charge represented the amount by which the carrying value exceeded the fair value of these assets which cannot be redeployed to other locations. The Argentine operations were sold in December 2010 (See Note 3, Discontinued Operations).

In addition, during the three and nine months ended September 30, 2010 in connection with a plan to close and consolidate facilities within the Americas’ segment as discussed more fully in Note 4, Costs Associated with Exit or Disposal Activities, the Company recorded an impairment charge of $3.1 million, comprised of a $2.9 million impairment of long-lived assets for leasehold improvements in certain of its underutilized customer contact management centers in the Philippines and a $0.2 million impairment of long-lived assets for leasehold improvements related to a plan to consolidate corporate leased space in the United States.