Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 3. Discontinued Operations

In December 2010, the Board of Directors (the “Board”) of SYKES, upon the recommendation of its Finance Committee, sold its Argentine operations, which were operated through two Argentine subsidiaries: Centro Interaccion Multimedia S.A. (“CIMSA”) and ICT Services of Argentina, S.A. (“ICT Argentina”), together the “Argentine operations.” CIMSA and ICT Argentina were offshore contact centers providing contact center services through a total of three centers in Argentina to clients in the United States and in the Republic of Argentina. The decision to exit Argentina was made due to surging costs, primarily chronic wage increases, which dramatically reduced the appeal of the Argentina footprint among the Company’s existing and new global clients and thus the overall future profitability of the Argentine operations. As these were stock transactions, the Company has no future obligation with regard to the Argentine operations and there are no material post closing obligations.

As a result of the sale of the Argentine operations, the operating results related to the Argentine operations have been reflected as discontinued operations in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2010. This business was historically reported by the Company as part of the Americas segment.

The results of the Argentine operations included in discontinued operations were as follows (in thousands):

	Three Months Ended			Nine Months Ended
	September 30, 2010			September 30, 2010
Revenues	$	12,495		$	31,772
(Loss) from discontinued operations before income taxes	$	(410	)	$	(3,190	)
Income taxes (1)		—			—
(Loss) from discontinued operations, net of taxes	$	(410	)	$	(3,190	)

⁽¹⁾ There were no income taxes on the loss from discontinued operations as any tax benefit from the losses would be offset by a valuation allowance.