Segments and Geographic Information

9 Months Ended

Sep. 30, 2012

Segments and Geographic Information

Note 19. Segments and Geographic Information

The Company operates within two regions, the Americas and EMEA. Each region represents a reportable segment comprised of aggregated regional operating segments, which portray similar economic characteristics. The Company aligns its business into two segments to effectively manage the business and support the customer care needs of every client and to respond to the demands of the Company’s global customers.

The reportable segments consist of (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, and provides outsourced customer contact management solutions (with an emphasis on technical support and customer service) and technical staffing and (2) EMEA, which includes Europe, the Middle East and Africa, and provides outsourced customer contact management solutions (with an emphasis on technical support and customer service) and fulfillment services. The sites within Latin America, India and the Asia Pacific Rim are included in the Americas segment given the nature of the business and client profile, which is primarily made up of U.S.-based companies that are using the Company’s services in these locations to support their customer contact management needs.

Information about the Company’s reportable segments is as follows (in thousands):

	Americas			EMEA			Other (1)			Consolidated
Three Months Ended September 30, 2012:
Revenues (2)	$	237,541		$	42,985					$	280,526
Percentage of revenues		84.7	%		15.3	%					100.0	%
Depreciation and amortization (2)	$	11,353		$	1,004					$	12,357
Income (loss) from continuing operations	$	21,654		$	2,359		$	(15,341	)	$	8,672
Other (expense), net								(839	)		(839	)
Income taxes								309			309
Income from continuing operations, net of taxes											8,142
(Loss) from discontinued operations, net of taxes (3)	$	—		$	—						—
Net income										$	8,142
Total assets as of September 30, 2012	$	1,265,146		$	1,073,201		$	(1,433,732	)	$	904,615
Three Months Ended September 30, 2011:
Revenues (2)	$	241,481		$	51,829					$	293,310
Percentage of revenues		82.3	%		17.7	%					100.0	%
Depreciation and amortization (2)	$	11,954		$	1,066					$	13,020
Income (loss) from continuing operations	$	30,950		$	1,893		$	(10,761	)	$	22,082
Other (expense), net								(244	)		(244	)
Income taxes								(2,969	)		(2,969	)
Income from continuing operations, net of taxes											18,869
(Loss) from discontinued operations, net of taxes (3)	$	—		$	(755	)					(755	)
Net income										$	18,114
Total assets as of September 30, 2011	$	1,150,752		$	1,174,224		$	(1,544,084	)	$	780,892

	Americas			EMEA			Other (1)			Consolidated
Nine Months Ended September 30, 2012:
Revenues (2)	$	688,841		$	134,585					$	823,426
Percentage of revenues		83.7	%		16.3	%					100.0	%
Depreciation and amortization (2)	$	33,687		$	2,990					$	36,677
Income (loss) from continuing operations	$	69,388		$	1,861		$	(39,182	)	$	32,067
Other (expense), net								(1,838	)		(1,838	)
Income taxes								(3,569	)		(3,569	)
Income from continuing operations, net of taxes											26,660
(Loss) from discontinued operations, net of taxes (3)	$	(6,302	)	$	(5,225	)					(11,527	)
Net income										$	15,133
Nine Months Ended September 30, 2011:
Revenues (2)	$	735,559		$	157,474					$	893,033
Percentage of revenues		82.4	%		17.6	%					100.0	%
Depreciation and amortization (2)	$	37,317		$	3,294					$	40,611
Income (loss) from continuing operations	$	89,353		$	1,171		$	(35,794	)	$	54,730
Other (expense), net								(2,152	)		(2,152	)
Income taxes								(6,224	)		(6,224	)
Income from continuing operations, net of taxes											46,354
(Loss) from discontinued operations, net of taxes (3)	$	—		$	(3,091	)					(3,091	)
Net income										$	43,263

⁽¹⁾  Other items (including corporate costs, impairment costs, other income and expense, and income taxes) are shown for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the three and nine months ended September 30, 2012 and 2011. The accounting policies of the reportable segments are the same as those described in Note 1 to the accompanying Condensed Consolidated Financial Statements. Inter-segment revenues are not material to the Americas and EMEA segment results. The Company evaluates the performance of its geographic segments based on revenue and income (loss) from operations, and does not include segment assets or other income and expense items for management reporting purposes.

⁽²⁾ Revenues and depreciation and amortization include results from continuing operations only.

⁽³⁾  Includes the (loss) from discontinued operations, net of taxes, as well as the (loss) on sale of discontinued operations, net of taxes, if any.