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SEGMENT INFORMATION
12 Months Ended
Dec. 31, 2019
SEGMENT INFORMATION [ABSTRACT]  
SEGMENT INFORMATION

(3)SEGMENT INFORMATION

During the second quarter of 2019, the Company finalized changes to the Company’s operating strategy and the way in which the Company assesses performance. In accordance with this change, the Company adjusted certain reporting relationships between the Chief Operating Decision Maker (“CODM”) and other members of management, updated the compensation metrics for senior management, and modified the internal financial reporting provided to the CODM and his direct reports consistent with this revised management and measurement structure. Accordingly, during the second quarter of 2019, the Company reevaluated the definition of the operating segments, reportable segments, and reporting units which resulted in a change to the reportable segments. Effective June 30, 2019, the segment information was reported consistent with these updated reportable segments comprised of TTEC Digital and TTEC Engage.

The Company reports the following two segments:

·

TTEC Digital designs, builds and delivers tech-enabled, insight-based and outcome-driven customer experience solutions through our professional services and suite of technology offerings. These solutions are critical to enabling and accelerating digital transformation for our clients.

o

Technology Services:  Our technology services design, integrate and operate highly scalable, digital omnichannel technology solutions in the cloud, on premise, or hybrid, including journey orchestration, automation and AI, knowledge management, and workforce productivity.

o

Professional Services:  Our management consulting practices deliver customer experience strategy, analytics, process optimization, and learning and performance services.

·

TTEC Engage provides the essential technologies, human resources, infrastructure and processes to operate customer care, acquisition, and fraud detection and prevention services.

o

Customer Acquisition Services:  Our customer growth and acquisition services optimize the buying journeys for acquiring new customers by leveraging technology and analytics to deliver personal experiences that increase the quantity and quality of leads and customers.

o

Customer Care Services:  Our customer care services provide turnkey contract center solutions, including digital omnichannel technologies, associate recruiting and training, facilities, and operational expertise to create exceptional customer experiences across all touchpoints.

o

Fraud Prevention Services:  Our digital fraud detection and prevention services proactively identify and prevent fraud and provide community content moderation and compliance.

The Company allocates to each segment its portion of corporate operating expenses. All intercompany transactions between the reported segments for the periods presented have been eliminated.

The following tables present certain financial data by segment (in thousands):

Year Ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

Depreciation

    

Income 

 

 

 

Gross

 

Intersegment

 

Net

 

&

 

(Loss) from

 

 

 

Revenue

 

Sales

 

Revenue

 

Amortization

 

Operations

 

TTEC Digital

 

$

305,595

 

$

(249)

 

$

305,346

 

$

11,216

 

$

38,927

 

TTEC Engage

 

 

1,338,358

 

 

 —

 

 

1,338,358

 

 

57,870

 

 

84,782

 

Total

 

$

1,643,953

 

$

(249)

 

$

1,643,704

 

$

69,086

 

$

123,709

 

 

Year Ended December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

Depreciation

    

Income 

 

 

 

Gross

 

Intersegment

 

Net

 

&

 

(Loss) from

 

 

 

Revenue

 

Sales

 

Revenue

 

Amortization

 

Operations

 

TTEC Digital

 

$

239,144

 

$

(345)

 

$

238,799

 

$

8,814

 

$

33,054

 

TTEC Engage

 

 

1,270,372

 

 

 —

 

 

1,270,372

 

 

60,365

 

 

59,000

 

Total

 

$

1,509,516

 

$

(345)

 

$

1,509,171

 

$

69,179

 

$

92,054

 

 

Year Ended December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

Depreciation

    

Income 

 

 

 

Gross

 

Intersegment

 

Net

 

&

 

(Loss) from

 

 

 

Revenue

 

Sales

 

Revenue

 

Amortization

 

Operations

 

TTEC Digital

 

$

207,244

 

$

(337)

 

$

206,907

 

$

9,355

 

$

14,480

 

TTEC Engage

 

 

1,270,477

 

 

(19)

 

 

1,270,458

 

 

55,152

 

 

86,009

 

Total

 

$

1,477,721

 

$

(356)

 

$

1,477,365

 

$

64,507

 

$

100,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31,

 

 

 

    

2019

    

2018

    

2017

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

TTEC Digital

 

 

$

14,397

 

$

4,833

 

$

3,018

 

TTEC Engage

 

 

 

46,379

 

 

38,617

 

 

48,940

 

Total

 

 

$

60,776

 

$

43,450

 

$

51,958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

2019

    

2018

 

2017

 

Total Assets

 

 

 

 

 

 

 

 

 

 

 

TTEC Digital

 

 

$

238,081

 

$

222,977

 

$

168,106

 

TTEC Engage

 

 

 

1,138,707

 

 

831,531

 

 

910,630

 

Total

 

 

$

1,376,788

 

$

1,054,508

 

$

1,078,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

2019

    

2018

 

2017

 

Goodwill

 

 

 

 

 

 

 

 

 

 

 

TTEC Digital

 

 

$

66,275

 

$

66,158

 

$

65,791

 

TTEC Engage

 

 

 

235,419

 

 

138,475

 

 

143,936

 

Total

 

 

$

301,694

 

$

204,633

 

$

209,727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following tables present certain financial data based upon the geographic location where the services are provided (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the

 

 

 

 

Year Ended December 31,

 

 

    

 

2019

    

2018

    

2017

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

$

1,002,524

 

$

862,026

 

$

820,597

 

Philippines

 

 

 

370,395

 

 

351,829

 

 

353,122

 

Latin America

 

 

 

100,117

 

 

109,104

 

 

130,082

 

Europe / Middle East / Africa

 

 

 

70,613

 

 

67,163

 

 

62,597

 

Asia Pacific / India

 

 

 

55,554

 

 

57,978

 

 

36,715

 

Canada

 

 

 

44,501

 

 

61,071

 

 

74,252

 

Total

 

 

$

1,643,704

 

$

1,509,171

 

$

1,477,365

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, gross

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

$

559,326

 

$

508,202

 

$

490,110

 

Philippines

 

 

 

144,213

 

 

130,176

 

 

137,683

 

Latin America

 

 

 

45,743

 

 

44,065

 

 

51,451

 

Europe / Middle East / Africa

 

 

 

14,823

 

 

10,499

 

 

10,280

 

Asia Pacific / India

 

 

 

21,562

 

 

19,874

 

 

24,592

 

Canada

 

 

 

15,516

 

 

15,193

 

 

15,912

 

Total

 

 

$

801,183

 

$

728,009

 

$

730,028

 

 

 

 

 

 

 

 

 

 

 

 

 

Other long-term assets

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

$

57,417

 

$

56,459

 

$

46,029

 

Philippines

 

 

 

7,892

 

 

5,188

 

 

7,753

 

Latin America

 

 

 

993

 

 

1,329

 

 

1,475

 

Europe / Middle East / Africa

 

 

 

993

 

 

544

 

 

(750)

 

Asia Pacific / India

 

 

 

1,422

 

 

1,680

 

 

4,326

 

Canada

 

 

 

252

 

 

241

 

 

324

 

Total

 

 

$

68,969

 

$

65,441

 

$

59,157