Fair Value

9 Months Ended

Sep. 30, 2012

Fair Value

Note 5. Fair Value

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

	Fair Value Measurements at September 30, 2012 Using:
	Balance at		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	September 30, 2012		Level (1)		Level (2)		Level (3)
Assets:
Money market funds and open-end mutual funds included in “Cash and cash equivalents” (1)	$	3,428	$	3,428	$	—	$	—
Money market funds and open-end mutual funds in “Deferred charges and other assets” (1)		11		11		—		—
Foreign currency forward and option contracts (2)		2,165		—		2,165		—
Equity investments held in a rabbi trust for the Deferred Compensation Plan (3)		3,146		3,146		—		—
Debt investments held in a rabbi trust for the Deferred Compensation Plan (3)		1,994		1,994		—		—
Guaranteed investment certificates (4)		80		—		80		—
	$	10,824	$	8,579	$	2,245	$	—
Liabilities:
Foreign currency forward and option contracts (5)	$	729	$	—	$	729	$	—
	$	729	$	—	$	729	$	—

⁽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 subject to the requirements of ASC 820 consist of the following (in thousands):

	Fair Value Measurements at December 31, 2011 Using:
	Balance at		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	December 31, 2011		Level (1)		Level (2)		Level (3)
Assets:
Money market funds and open-end mutual funds included in “Cash and cash equivalents” (1)	$	68,651	$	68,651	$	—	$	—
Money market funds and open-end mutual funds in “Deferred charges and other assets” (1)		12		12		—		—
Foreign currency forward and option contracts (2)		710		—		710		—
Equity investments held in a rabbi trust for the Deferred Compensation Plan (3)		2,817		2,817		—		—
Debt investments held in a rabbi trust for the Deferred Compensation Plan (3)		1,365		1,365		—		—
Guaranteed investment certificates (4)		65		—		65		—
	$	73,620	$	72,845	$	775	$	—
Liabilities:
Foreign currency forward and option contracts (5)	$	752	$	—	$	752	$	—
	$	752	$	—	$	752	$	—

⁽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, Overview and Summary of Significant Accounting Policies, like those associated with acquired businesses, including goodwill, 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 these assets were determined to be impaired. The adjusted carrying values for assets measured at fair value on a nonrecurring basis (no liabilities) subject to the requirements of ASC 820 were not material at September 30, 2012 and December 31, 2011.

The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) subject to the requirements of ASC 820 (in thousands):

	Total Impairment (Loss)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Americas:
Property and equipment, net (1)	$	(122	)	$	(38	)	$	(271	)	$	(764	)

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

Impairment of Long-Lived Assets

During the three and nine months ended September 30, 2012, the Company determined that the carrying value of certain long-lived assets, primarily software licenses, in one of its customer contact management centers in Canada (a component of the Americas segment), were no longer being used and were disposed of. As a result, the Company recorded an impairment loss of $0.1 million.

During the nine months ended September 30, 2012, as part of an on-going effort to streamline excess capacity related to the integration of the ICT acquisition and align it with the needs of the market, the Company closed one of the customer contact management centers in Costa Rica and recorded an impairment charge of $0.1 million within the Americas segment as these assets were unable to be redeployed. The amount of the impairment charge was measured as the amount by which the carrying value of the assets exceeded the estimated fair value, which was based on an independent third party offer less estimated selling costs.

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.

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. The amount of the impairment charge was measured as the amount by which the carrying value of the assets exceeded the estimated fair value, which was based on an independent third party offer less estimated selling costs.