DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]

The fair value and location of derivatives in the Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 were as follows (in thousands):


	September 30, 2025
	Designated		Not Designated
	as Hedging		as Hedging
Designation:	Instruments		Instruments
	Foreign		Foreign
Derivative contract type:	Exchange		Exchange
Derivative classification:	Cash Flow		Fair Value

Prepaids and other current assets	$	1,433	$	159
Other long-term assets		202		—
Other current liabilities		(1,169)		(4)
Other long-term liabilities		(130)		—
Total fair value of derivatives, net	$	336	$	155


	December 31, 2024
	Designated		Not Designated
	as Hedging		as Hedging
Designation:	Instruments		Instruments
	Foreign		Foreign
Derivative contract type:	Exchange		Exchange
Derivative classification:	Cash Flow		Fair Value

Prepaids and other current assets	$	783	$	6
Other long-term assets		—		—
Other current liabilities		(2,679)		(183)
Other long-term liabilities		(1,471)		—
Total fair value of derivatives, net	$	(3,367)	$	(177)

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

The Company’s foreign exchange cash flow hedging instruments as of September 30, 2025 and December 31, 2024 are summarized as follows (amounts in thousands). All hedging instruments are forward contracts.


	Local
	Currency	U.S. Dollar			% Maturing		Contracts
	Notional	Notional			in the next		Maturing
As of September 30, 2025	Amount	Amount			12 months		Through
Philippine Peso	3,467,000	$	60,451	⁽¹⁾	88.8	%	March 2027
Mexican Peso	426,500		21,218		83.5	%	December 2026
Colombian Peso	8,000,000		1,931		100.0	%	August 2026
		$	83,600

Local

Currency

U.S. Dollar

% Maturing

Contracts

Notional

in the next

Maturing

As of December 31, 2024

Amount

12 months

Through

Philippine Peso

6,034,000

105,098

⁽¹⁾

67.8

March 2027

Mexican Peso

548,000

26,682

64.6

December 2026

131,780

(1)	Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on September 30, 2025 and December 31, 2024.

The Company’s volume of foreign exchange fair value derivative contracts as of September 30, 2025 and December 31, 2024 are summarized as follows (in thousands):


	Local
	Currency	U.S. Dollar
	Notional	Notional
As of September 30, 2025 ⁽²⁾	Amount	Amount
Australian Dollar	2,950	$	1,934
Canadian Dollar	6,800		4,891
Euro	15,500		18,099
British Pound	4,100		5,504
Mexican Peso	62,000		3,380
New Zealand Dollar	1,500		866
Polish Zloty	17,800		4,859
		$	39,533

⁽²⁾All fair value hedges are short-term and matured in October 2025.


	Local
	Currency	U.S. Dollar
	Notional	Notional
As of December 31, 2024 ⁽³⁾	Amount	Amount
Australian Dollar	3,850	$	2,393
Canadian Dollar	5,850		4,137
Euro	11,000		11,456
British Pound	5,600		7,066
Mexican Peso	130,000		6,307
New Zealand Dollar	3,400		1,914
		$	33,273

Schedule of cash flow hedge impact on Statement of Comprehensive Income

The amounts and location of gains and losses on Cash Flow Hedges within the Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024

Foreign Exchange Cash Flow Hedges, effective:

Amount of gain (loss) recognized in Other comprehensive income (loss) ⁽¹⁾	$	(1,213)	$	3,514	$	4,366	$	(1,801)

Amount and location of gain (loss) reclassified from Accumulated OCI to:
Revenue	$	411	$	681	$	896	$	2,669
Provision for income taxes		(107)		(177)		(233)		(695)
Net income (loss)	$	304	$	504	$	663	$	1,974

⁽¹⁾ As a result of the valuation allowance recorded in Q2 2024 against the Company’s U.S. Deferred Tax Assets, there is no tax impact recognized in Other comprehensive income (loss) for unrealized foreign exchange cash flow hedge gains or losses in 2025.

Schedule of fair value derivative impact on Statement of Comprehensive Income

The amounts and location of before tax gains and losses on Fair Value Hedges within the Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2025 and 2024, respectively, were as follows (in thousands):


	Three Months Ended September 30,
	2025		2024

Designation:	Not Designated as Hedging Instruments
Derivative contract type:	Foreign Exchange
Derivative classification:	Fair Value

Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss):
Other income (expense), net	$	(7)	$	(683)


	Nine Months Ended September 30,
	2025		2024

Designation:	Not Designated as Hedging Instruments
Derivative contract type:	Foreign Exchange
Derivative classification:	Fair Value

Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss):
Other income (expense), net	$	275	$	(1,213)

TTEC Holdings, Inc. 10-Q