Segments and Geographic Information

3 Months Ended

Mar. 31, 2020

Note 15. 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 engagement solutions (with an emphasis on inbound technical support, digital support and demand generation, and customer service) and technical staffing and (2) EMEA, which includes Europe, the Middle East and Africa, and provides outsourced customer engagement solutions (with an emphasis on technical support and customer service) and fulfillment services. The sites within Latin America, Australia 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 engagement needs.

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

	Americas			EMEA			Other ⁽¹⁾			Consolidated
Three Months Ended March 31, 2020:
Revenues	$	332,926		$	78,233		$	7		$	411,166
Percentage of revenues		81.0	%		19.0	%		0.0	%		100.0	%
Depreciation, net	$	10,033		$	1,705		$	723		$	12,461
Amortization of intangibles	$	3,286		$	833		$	—		$	4,119
Income (loss) from operations	$	35,779		$	3,180		$	(14,565	)	$	24,394
Total other income (expense), net								(5,250	)		(5,250	)
Income taxes								(5,226	)		(5,226	)
Net income										$	13,918
Three Months Ended March 31, 2019:
Revenues	$	324,777		$	78,128		$	20		$	402,925
Percentage of revenues		80.6	%		19.4	%		0.0	%		100.0	%
Depreciation, net	$	11,507		$	1,626		$	764		$	13,897
Amortization of intangibles	$	3,438		$	848		$	—		$	4,286
Income (loss) from operations	$	30,068		$	1,491		$	(14,807	)	$	16,752
Total other income (expense), net								(383	)		(383	)
Income taxes								(4,682	)		(4,682	)
Net income										$	11,687

(1) Other items (including corporate and other costs, other income and expense, and income taxes) are included for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the periods shown. Inter-segment revenues are not material to the Americas and EMEA segment results.

The Company’s reportable segments are evaluated regularly by its chief operating decision maker to decide how to allocate resources and assess performance. The chief operating decision maker evaluates performance based upon reportable segment revenue and income (loss) from operations. Because assets by segment are not reported to or used by the Company’s chief operating decision maker to allocate resources, or to assess performance, total assets by segment are not disclosed.

The following table represents a disaggregation of revenue from contracts with customers by delivery location and by the reportable segment (in thousands):

	Three Months Ended March 31,
	2020		2019
Americas:
United States	$	157,666	$	162,032
The Philippines		64,439		56,078
Costa Rica		34,881		30,717
Canada		25,241		25,564
El Salvador		18,720		20,476
Other		31,979		29,910
Total Americas		332,926		324,777
EMEA:
Germany		24,651		23,864
Other		53,582		54,264
Total EMEA		78,233		78,128
Total Other		7		20
	$	411,166	$	402,925