XML 104 R9.htm IDEA: XBRL DOCUMENT v3.20.1
Revenues
3 Months Ended
Mar. 31, 2020
Revenue From Contract With Customer [Abstract]  
Revenues

Note 2. Revenues

Revenues from Contracts with Customers

Customer Engagement Solutions and Services

The Company provides customer engagement solutions and services with an emphasis on inbound multichannel demand generation, customer service and technical support to its clients’ customers. These services are delivered through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. Revenues for customer engagement solutions and services are recognized over time using output methods such as a per minute, per hour, per call, per transaction or per time and materials basis.

Other Revenues

The Company offers RPA services, including RPA consulting, implementation, hosting and managed services for front, middle and back-office processes, in Europe and the U.S. Revenues are primarily recognized over time using output methods such as per time and materials basis.

The Company offers fulfillment services that are integrated with its customer care and technical support services, primarily to clients operating in Europe. The Company’s fulfillment solutions include order processing, payment processing, inventory control, product delivery and product returns handling. Revenues are recognized upon shipment to the customer and satisfaction of all obligations.

The Company provides a range of enterprise support services including technical staffing services and outsourced corporate help desk services, primarily in the U.S. Revenues are recognized over time using output methods such as number of positions filled.

The Company also has miscellaneous other revenues in the Other segment.

Disaggregated Revenues

The Company disaggregates its revenues from contracts with customers by service type and delivery location (see Note 15, Segments and Geographic Information), for each of its reportable segments, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by economic factors.

The following table represents revenues from contracts with customers disaggregated by service type and by the reportable segment for each category (in thousands):

 

 

Three Months Ended March 31,

 

 

2020

 

 

2019

 

 

Amount

 

 

% of Revenue

 

 

Amount

 

 

% of Revenue

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

$

332,614

 

 

 

80.9

%

 

$

324,562

 

 

 

80.6

%

Other revenues

 

312

 

 

 

0.1

%

 

 

215

 

 

 

0.0

%

Total Americas

 

332,926

 

 

 

81.0

%

 

 

324,777

 

 

 

80.6

%

EMEA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer engagement solutions and services

 

72,633

 

 

 

17.7

%

 

 

70,997

 

 

 

17.6

%

Other revenues

 

5,600

 

 

 

1.3

%

 

 

7,131

 

 

 

1.8

%

Total EMEA

 

78,233

 

 

 

19.0

%

 

 

78,128

 

 

 

19.4

%

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

7

 

 

 

0.0

%

 

 

20

 

 

 

0.0

%

Total Other

 

7

 

 

 

0.0

%

 

 

20

 

 

 

0.0

%

 

$

411,166

 

 

 

100.0

%

 

$

402,925

 

 

 

100.0

%

Trade Accounts Receivable

 

The Company’s noncurrent trade accounts receivable result from (1) contracts with customers that include renewal provisions, and (2) contracts with customers under multi-year arrangements. The Company’s trade accounts receivable, net, consisted of the following (in thousands):

 

 

March 31, 2020

 

 

December 31, 2019

 

Trade accounts receivable, net, current (1)

$

364,625

 

 

$

375,136

 

Trade accounts receivable, net, noncurrent (2)

 

26,851

 

 

 

26,496

 

 

$

391,476

 

 

$

401,632

 

 

(1) Included in “Receivables, net” in the accompanying Condensed Consolidated Balance Sheets.

(2) Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.  

 

Deferred Revenue and Customer Liabilities

Deferred revenue and customer liabilities consisted of the following (in thousands):

 

 

March 31, 2020

 

 

December 31, 2019

 

Deferred revenue

$

3,261

 

 

$

3,012

 

Customer arrangements with termination rights

 

13,815

 

 

 

15,024

 

Estimated refund liabilities

 

7,445

 

 

 

8,585

 

 

$

24,521

 

 

$

26,621

 

 

The Company expects to recognize the majority of its deferred revenue as of March 31, 2020 over the next 180 days. Revenues of $2.7 million and $3.1 million were recognized during the three months ended March 31, 2020 and 2019, respectively, from amounts included in deferred revenue at December 31, 2019 and 2018, respectively.

The Company expects to recognize the majority of the customer arrangements with termination rights into revenue as the Company has not historically experienced a high rate of contract terminations.

Estimated refund liabilities are generally resolved within 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency.