Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 23, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CSG SYSTEMS INTERNATIONAL INC | ||
Entity Central Index Key | 1005757 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $859,503,967 | ||
Entity Common Stock, Shares Outstanding | 34,177,137 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $81,712 | $82,686 |
Short-term investments | 120,088 | 128,151 |
Total cash, cash equivalents and short-term investments | 201,800 | 210,837 |
Trade accounts receivable: | ||
Billed, net of allowance of $3,323 and $2,359 | 184,369 | 178,511 |
Unbilled | 42,439 | 38,365 |
Deferred income taxes | 13,204 | 15,085 |
Income taxes receivable | 7,851 | 3,815 |
Other current assets | 28,470 | 28,762 |
Total current assets | 478,133 | 475,375 |
Non-current assets: | ||
Property and equipment, net of depreciation of $138,065 and $129,522 | 38,326 | 35,061 |
Goodwill | 225,269 | 233,599 |
Deferred income taxes | 8,890 | 7,447 |
Income taxes receivable | 1,333 | 1,930 |
Other assets | 16,142 | 16,812 |
Total non-current assets | 381,595 | 393,605 |
Total assets | 859,728 | 868,980 |
Current liabilities: | ||
Current maturities of long-term debt | 22,500 | 15,000 |
Client deposits | 35,791 | 30,431 |
Trade accounts payable | 37,052 | 33,376 |
Accrued employee compensation | 51,441 | 58,434 |
Deferred revenue | 40,004 | 47,131 |
Income taxes payable | 984 | 2,814 |
Other current liabilities | 23,375 | 19,620 |
Total current liabilities | 211,147 | 206,806 |
Non-current liabilities: | ||
Long-term debt, net of unamortized original issue discount of $14,169 and $19,950 | 233,331 | 250,050 |
Deferred revenue | 9,648 | 9,221 |
Income taxes payable | 1,613 | 1,909 |
Deferred income taxes | 20,445 | 20,274 |
Other non-current liabilities | 15,821 | 14,616 |
Total non-current liabilities | 280,858 | 296,070 |
Total liabilities | 492,005 | 502,876 |
Stockholders' equity: | ||
Preferred stock, par value $.01 per share; 10,000 shares authorized; zero shares issued and outstanding | ||
Common stock, par value $.01 per share; 100,000 shares authorized; 6,032 and 5,441 shares reserved for employee stock purchase plan and stock incentive plans; 33,945 and 33,745 shares outstanding | 667 | 658 |
Common stock warrants; 2,851 and zero warrants issued and outstanding | 6,694 | |
Additional paid-in capital | 486,414 | 473,190 |
Treasury stock, at cost, 32,763 and 32,030 shares | -757,478 | -738,372 |
Accumulated other comprehensive income (loss): | ||
Unrealized gain on short-term investments, net of tax | 6 | 41 |
Unrecognized loss on change in fair value of interest rate swap contracts, net of tax | -98 | |
Cumulative foreign currency translation adjustments | -13,386 | 1,674 |
Accumulated earnings | 644,806 | 629,011 |
Total stockholders' equity | 367,723 | 366,104 |
Total liabilities and stockholders' equity | 859,728 | 868,980 |
Software | ||
Non-current assets: | ||
Intangible assets | 44,732 | 43,565 |
Client contracts | ||
Non-current assets: | ||
Intangible assets | $46,903 | $55,191 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Trade accounts receivable-billed, allowance | $3,323 | $2,359 |
Property and equipment, accumulated depreciation | 138,065 | 129,522 |
Long-term debt, unamortized original issue discount | 14,169 | 19,950 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares reserved for employee stock purchase plan and stock incentive plans | 6,032,000 | 5,441,000 |
Common stock warrants, outstanding | 33,945,000 | 33,745,000 |
Treasury stock, shares | 32,763,000 | 32,030,000 |
Software | ||
Accumulated amortization | 86,797 | 77,504 |
Client contracts | ||
Accumulated amortization | $88,585 | $75,382 |
Common stock warrant | ||
Common stock warrants, issued | 2,851,000 | 0 |
Common stock warrants, outstanding | 2,851,000 | 0 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Processing and related services | $562,109 | $537,453 | $544,649 |
Software and services | 102,585 | 118,988 | 124,242 |
Maintenance | 86,592 | 91,027 | 87,975 |
Total revenues | 751,286 | 747,468 | 756,866 |
Cost of revenues (exclusive of depreciation, shown separately below): | |||
Processing and related services | 277,084 | 253,756 | 258,380 |
Software and services | 79,640 | 84,222 | 85,562 |
Maintenance | 32,619 | 39,187 | 39,874 |
Total cost of revenues | 389,343 | 377,165 | 383,816 |
Other operating expenses: | |||
Research and development | 104,712 | 110,008 | 112,938 |
Selling, general and administrative | 153,488 | 152,553 | 138,783 |
Depreciation | 14,084 | 18,633 | 22,286 |
Restructuring and reorganization charges | 13,969 | 12,405 | 2,469 |
Total operating expenses | 675,596 | 670,764 | 660,292 |
Operating income | 75,690 | 76,704 | 96,574 |
Other income (expense): | |||
Interest expense | -10,453 | -11,621 | -15,983 |
Amortization of original issue discount | -5,781 | -5,352 | -4,954 |
Interest and investment income, net | 798 | 689 | 855 |
Other, net | 1,268 | 1,099 | 732 |
Total other | -14,168 | -15,185 | -19,350 |
Income before income taxes | 61,522 | 61,519 | 77,224 |
Income tax provision | -24,563 | -10,168 | -28,345 |
Net income | $36,959 | $51,351 | $48,879 |
Weighted-average shares outstanding - Basic: | |||
Common stock | 32,449 | 32,117 | 32,142 |
Participating restricted stock | 17 | ||
Total | 32,449 | 32,117 | 32,159 |
Weighted-average shares outstanding - Diluted: | |||
Common stock | 33,736 | 32,873 | 32,459 |
Participating restricted stock | 17 | ||
Total | 33,736 | 32,873 | 32,476 |
Earnings per common share: | |||
Basic | $1.14 | $1.60 | $1.52 |
Diluted | $1.10 | $1.56 | $1.51 |
Cash dividends declared per common share: | $0.62 | $0.45 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $36,959 | $51,351 | $48,879 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | -15,060 | -600 | 4,272 |
Unrealized holding gains (losses) on short-term investments arising during period | -35 | 38 | 2 |
Defined benefit pension plan: | |||
Net loss arising from period (net of tax effect of $0, $(119), and $(62)) | -183 | -119 | |
Amortization of net actuarial loss included in net periodic pension cost (net of tax effect of $0, $28, and $97) | 43 | 152 | |
Final settlement of pension plan liability (net of tax effect of $0, $1,214, and $0) | 1,901 | ||
Net change in defined benefit pension plan | 1,761 | 33 | |
Cash flow hedges: | |||
Unrealized gains on change in fair value of interest rate swap contracts (net of tax effect of $110, $724, and $128) | 195 | 1,140 | 200 |
Reclassification adjustment for losses included in net income (net of tax effect of $(55), $(368), and $(153)) | -97 | -580 | -240 |
Net change in cash flow hedges | 98 | 560 | -40 |
Other comprehensive income (loss), net of tax | -14,997 | 1,759 | 4,267 |
Total comprehensive income, net of tax | $21,962 | $53,110 | $53,146 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss arising from period related to defined benefit pension plan, tax | $0 | ($119) | ($62) |
Amortization of prior service cost included in net periodic pension cost, tax | 0 | 28 | 97 |
Final settlement of pension plan liability, tax | 0 | 1,214 | 0 |
Unrealized gains (losses) on change in fair value of interest rate swap contracts, tax | 110 | 724 | 128 |
Reclassification adjustment for gains (losses) included in net income, tax | ($55) | ($368) | ($153) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Common Stock Warrants | Paid-In Capital | Treasury Stock | Accumulated Earnings | Accumulated Other Comprehensive Income |
In Thousands, except Share data | |||||||
Balance, beginning of period at Dec. 31, 2011 | $645 | $449,376 | ($714,893) | $543,995 | ($4,409) | ||
Balance, beginning of period, shares at Dec. 31, 2011 | 33,822,000 | ||||||
Issuance of restricted common stock pursuant to employee stock-based compensation plans | 8 | -8 | |||||
Repurchase and cancellation of common stock pursuant to employee stock-based compensation plans | -3,208 | ||||||
Issuance of common stock pursuant to employee stock purchase plan | 1,394 | ||||||
Exercise of stock options | 502 | ||||||
Stock-based compensation expense | 13,431 | ||||||
Stock-based compensation income tax benefits | 10 | ||||||
Repurchase of common stock pursuant to Board - approved stock repurchase program | -13,349 | -13,350 | |||||
Net income | 48,879 | 48,879 | |||||
Net unrealized gains (losses) on short-term investments | 2 | ||||||
Net unrealized gains on pension plan and prior service costs | 33 | ||||||
Net unrealized gains (losses) on change in fair value of interest rate swap contracts | -40 | -40 | |||||
Foreign currency translation adjustments | 4,272 | 4,272 | |||||
Repurchase of common stock pursuant to Board -approved stock repurchase program, shares | -823,000 | -823,000 | |||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 94,000 | ||||||
Exercise of stock options, shares | 40,000 | ||||||
Issuance of restricted common stock pursuant to employee stock-based compensation plans, shares | 873,000 | ||||||
Cancellation of unvested restricted common stock pursuant to employee stock-based compensation plans, shares | -77,000 | ||||||
Repurchase and cancellation of common stock pursuant to employee stock-based compensation plans, shares | -197,000 | -195,000 | |||||
Balance, end of period at Dec. 31, 2012 | 326,639 | 653 | 461,497 | -728,243 | 592,874 | -142 | |
Balance, end of period, shares at Dec. 31, 2012 | 33,734,000 | ||||||
Issuance of restricted common stock pursuant to employee stock-based compensation plans | 8 | -8 | |||||
Repurchase and cancellation of common stock pursuant to employee stock-based compensation plans | -3 | -5,346 | |||||
Issuance of common stock pursuant to employee stock purchase plan | 1,347 | ||||||
Exercise of stock options | 244 | ||||||
Stock-based compensation expense | 14,796 | ||||||
Stock-based compensation income tax benefits | 660 | ||||||
Repurchase of common stock pursuant to Board - approved stock repurchase program | -10,129 | -10,129 | |||||
Net income | 51,351 | 51,351 | |||||
Declaration of cash dividends | -15,214 | ||||||
Net unrealized gains (losses) on short-term investments | 38 | ||||||
Net unrealized gains on pension plan and prior service costs | 1,761 | ||||||
Net unrealized gains (losses) on change in fair value of interest rate swap contracts | 560 | 560 | |||||
Foreign currency translation adjustments | -600 | -600 | |||||
Repurchase of common stock pursuant to Board -approved stock repurchase program, shares | -500,000 | -500,000 | |||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 68,000 | ||||||
Exercise of stock options, shares | 20,000 | ||||||
Issuance of restricted common stock pursuant to employee stock-based compensation plans, shares | 840,000 | ||||||
Cancellation of unvested restricted common stock pursuant to employee stock-based compensation plans, shares | -153,000 | ||||||
Repurchase and cancellation of common stock pursuant to employee stock-based compensation plans, shares | -264,000 | -264,000 | |||||
Balance, end of period at Dec. 31, 2013 | 366,104 | 658 | 473,190 | -738,372 | 629,011 | 1,617 | |
Balance, end of period, shares at Dec. 31, 2013 | 33,745,000 | 33,745,000 | 0 | ||||
Issuance of restricted common stock pursuant to employee stock-based compensation plans | 11 | -11 | |||||
Repurchase and cancellation of common stock pursuant to employee stock-based compensation plans | -2 | -6,925 | |||||
Issuance of common stock warrants, granted to Comcast (exercise price of $26.68 per warrant) | 6,694 | ||||||
Issuance of common stock pursuant to employee stock purchase plan | 1,394 | ||||||
Stock-based compensation expense | 16,706 | ||||||
Stock-based compensation income tax benefits | 2,060 | ||||||
Repurchase of common stock pursuant to Board - approved stock repurchase program | -19,106 | -19,106 | |||||
Net income | 36,959 | 36,959 | |||||
Declaration of cash dividends | -21,164 | ||||||
Net unrealized gains (losses) on short-term investments | -35 | ||||||
Net unrealized gains (losses) on change in fair value of interest rate swap contracts | 98 | 98 | |||||
Foreign currency translation adjustments | -15,060 | -15,060 | |||||
Repurchase of common stock pursuant to Board -approved stock repurchase program, shares | -733,000 | -733,000 | |||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 61,000 | ||||||
Issuance of restricted common stock pursuant to employee stock-based compensation plans, shares | 1,261,000 | ||||||
Cancellation of unvested restricted common stock pursuant to employee stock-based compensation plans, shares | -137,000 | ||||||
Repurchase and cancellation of common stock pursuant to employee stock-based compensation plans, shares | -252,000 | -252,000 | |||||
Balance, end of period at Dec. 31, 2014 | $367,723 | $667 | $6,694 | $486,414 | ($757,478) | $644,806 | ($13,380) |
Balance, end of period, shares at Dec. 31, 2014 | 33,945,000 | 33,945,000 | 2,851,000 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY(Parenthetical) (USD $) | Dec. 31, 2014 |
Statement Of Stockholders Equity [Abstract] | |
Common stock warrants issued, per warrant | $26.68 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $36,959 | $51,351 | $48,879 |
Adjustments to reconcile net income to net cash provided by operating activities- | |||
Depreciation | 14,084 | 18,633 | 22,286 |
Amortization | 33,553 | 37,819 | 44,178 |
Amortization of original issue discount | 5,781 | 5,352 | 4,954 |
Impairment of client contract | 3,783 | ||
(Gain) loss on short-term investments and other | 1,123 | 910 | -107 |
(Gain) loss on disposition of business operations | -222 | 3,017 | |
Loss on termination of pension plan | 3,221 | ||
Deferred income taxes | 41 | -1,764 | -10,707 |
Excess tax benefit of stock-based compensation awards | -2,060 | -677 | -415 |
Stock-based employee compensation | 16,655 | 14,796 | 13,431 |
Changes in operating assets and liabilities, net of acquired amounts: | |||
Trade accounts receivable, net | -14,326 | -2,319 | -9,481 |
Other current and non-current assets | -3,230 | -7,163 | -1,715 |
Income taxes payable/receivable | -3,508 | 4,556 | -6,543 |
Trade accounts payable and accrued liabilities | 4,359 | -994 | 18,474 |
Deferred revenue | -5,558 | -104 | 425 |
Net cash provided by operating activities | 83,651 | 126,634 | 127,442 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -25,985 | -30,076 | -33,221 |
Purchases of short-term investments | -190,427 | -183,575 | -65,355 |
Proceeds from sale/maturity of short-term investments | 197,466 | 89,688 | 42,063 |
Acquisition of businesses, net of cash acquired | -2,926 | -19,085 | |
Acquisition of and investments in client contracts | -5,600 | -7,092 | -4,629 |
Proceeds from the disposition of business operations | 1,130 | 4,530 | |
Net cash used in investing activities | -23,416 | -129,451 | -80,227 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 1,394 | 1,591 | 1,896 |
Payment of cash dividends | -20,530 | -14,454 | |
Repurchase of common stock | -25,138 | -15,478 | -16,558 |
Payments on acquired equipment financing | -1,097 | -2,723 | -1,698 |
Proceeds from long-term debt | 150,000 | ||
Payments on long-term debt | -15,000 | -15,000 | -190,000 |
Payments of deferred financing costs | -2,450 | ||
Excess tax benefit of stock-based compensation awards | 2,060 | 677 | 415 |
Net cash used in financing activities | -58,311 | -45,387 | -58,395 |
Effect of exchange rate fluctuations on cash | -2,898 | -2,857 | -1,806 |
Net decrease in cash and cash equivalents | -974 | -51,061 | -12,986 |
Cash and cash equivalents, beginning of year | 82,686 | 133,747 | 146,733 |
Cash and cash equivalents, end of year | 81,712 | 82,686 | 133,747 |
Cash paid during the year for- | |||
Interest | 8,265 | 9,440 | 13,124 |
Income taxes | $25,153 | $6,149 | $43,739 |
General
General | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
General | 1 | General |
CSG Systems International, Inc. (the “Company”, “CSG”, or forms of the pronoun “we”), a Delaware corporation, was formed in October 1994 and is based in Englewood, Colorado. We are a business support solutions provider primarily serving the communications industry. Our broad suite of solutions helps our clients improve their business operations by creating more compelling product offerings and an enhanced customer experience through more relevant and targeted interactions, while at the same time, more efficiently managing the service provider’s cost structure. Over the years, we have focused our research and development (“R&D”) and acquisition investments on expanding our solution set to address the expanding needs of communications service providers to provide a differentiated, real-time, and personal experience for their consumers. Our suite of solutions includes revenue management, content management and monetization, and customer interaction management. We are a S&P SmallCap 600 company. | ||
The accompanying Consolidated Financial Statements (“Financial Statements”) are prepared in conformity with accounting principles generally accepted (“GAAP”) in the United States (“U.S.”). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||
Summary of Significant Accounting Policies | 2 | Summary of Significant Accounting Policies | ||||||||||||||||||||||
Principles of Consolidation. Our Financial Statements include all of our accounts and our subsidiaries’ accounts. All material intercompany accounts and transactions have been eliminated. | ||||||||||||||||||||||||
Translation of Foreign Currency. Our foreign subsidiaries use the local currency of the countries in which they operate as their functional currency. Their assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenues, expenses, and cash flows are translated at the average rates of exchange prevailing during the period. Foreign currency translation adjustments are included in comprehensive income in stockholders’ equity. Foreign currency transaction gains and losses are included in the determination of net income. | ||||||||||||||||||||||||
Use of Estimates in Preparation of Our Financial Statements. The preparation of our Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The more critical estimates and related assumptions that affect our financial position and results of operations are in the areas of: (i) revenue recognition; (ii) allowance for doubtful accounts receivable; (iii) impairment assessments of goodwill and other long-lived assets; (iv) income taxes; (v) business combinations and asset purchases; and (vi) loss contingencies. | ||||||||||||||||||||||||
Revenue Recognition. We use various judgments and estimates in connection with the determination of the amount of revenues to be recognized in each accounting period. Our primary revenue recognition criteria include: (i) persuasive evidence of an arrangement; (ii) delivery; (iii) fixed or determinable fees; and (iv) collectibility of fees. | ||||||||||||||||||||||||
Processing and Related Services. | ||||||||||||||||||||||||
Our processing and related services revenue relates to: (i) the outsourced, customer care and billing processing and related services provided to our North American cable and satellite clients; and (ii) the managed services provided to clients which utilize our software. | ||||||||||||||||||||||||
We contract for our processing and related services using long-term agreements whose terms have typically ranged from three to ten years. The long-term processing agreements include multiple services delivered each month, to include such things as: (i) billing and data processing services; (ii) credit management and collection services; and (iii) customer statement invoice printing and mailing services. The fees for these deliverables typically are billed to our clients monthly based upon actual monthly volumes and/or usage of services (e.g., the number of client customers processed on our systems, the number of transactions processed on our systems, and/or the quantity and content of the monthly statements and mailings processed through our systems) or on a fixed monthly fee. We recognize processing and related services revenue on a monthly basis as we provide the services. | ||||||||||||||||||||||||
We contract for our managed services using long-term arrangements whose terms have ranged from three to eight years. Under managed services agreements, we may operate certain of our software products on behalf of our clients: (i) out of a client’s data center; (ii) out of a data center we own and operate; or (iii) out of a third-party data center we contract with for such services. Managed services can also include us providing other services, such as transitional services, fulfillment, remittance processing, operational consulting, back office, and end user billing services. | ||||||||||||||||||||||||
Software, Services, and Maintenance. | ||||||||||||||||||||||||
Our software and services revenue relates primarily to: (i) software license sales; and (ii) professional services to implement the software. Our maintenance revenue relates primarily to support of our software once it has been implemented. | ||||||||||||||||||||||||
The accounting for software license arrangements, especially when software is sold in a multiple-element arrangement, can be complex and requires considerable judgment. Key factors considered in accounting for software license and related services include the following criteria: (i) the identification of the separate elements of the arrangement; (ii) the determination of whether any undelivered elements are essential to the functionality of the delivered elements; (iii) the assessment of whether the software, if hosted, should be accounted for as a services arrangement and thus outside the scope of the software revenue recognition literature; (iv) the determination of vendor specific objective evidence (“VSOE”) of fair value for the undelivered element(s) of the arrangement; (v) the assessment of whether the software license fees are fixed or determinable; (vi) the determination as to whether the fees are considered collectible; and (vii) the assessment of whether services included in the arrangement represent significant production, customization or modification of the software. The evaluation of these factors, and the ultimate revenue recognition decision, requires significant judgments to be made by us. The judgments made in this area could have a significant effect on revenues recognized in any period by changing the amount and/or the timing of the revenue recognized. In addition, because software licenses typically have little or no direct, incremental costs related to the recognition of the revenue, these judgments could also have a significant effect on our results of operations. | ||||||||||||||||||||||||
The initial sale of software products generally requires significant production, modification or customization and thus falls under the guidelines of contract accounting. In these software license arrangements, the elements of the arrangements are typically a software license, professional services, and maintenance. When we have VSOE of fair value for the maintenance, which we generally do, we allocate a portion of the total arrangement fee to the maintenance element based on its VSOE of fair value, and the balance of the arrangement fee is subject to contract accounting using the percentage-of-completion (“POC”) method of accounting. Under the POC method of accounting, software license and professional services revenues are typically recognized as the professional services related to the software implementation project are performed. We are using hours performed on the project as the measure to determine the percentage of the work completed. | ||||||||||||||||||||||||
In certain instances, we sell software license volume upgrades, which provide our clients the right to use our software to process higher transaction volume levels. In these instances, if: (i) maintenance is the only undelivered element of the software arrangement; (ii) we have VSOE of fair value for the maintenance related to the volume upgrade; and (iii) we meet the other revenue recognition criteria, we recognize the software license revenue on the effective date of the volume upgrade. | ||||||||||||||||||||||||
A portion of our professional services revenues does not include an element of software delivery (e.g., business consulting services, etc.), and thus, do not fall within the scope of specific authoritative accounting literature for software arrangements. In these cases, revenues from fixed-price, professional service contracts are recognized using a method consistent with the proportional performance method, which is relatively consistent with our POC methodology. Under a proportional performance model, revenue is recognized by allocating revenue between reporting periods based on relative service provided in each reporting period, and costs are generally recognized as incurred. We utilize an input-based approach (i.e., hours worked) for purposes of measuring performance on these types of contracts. Our input measure is considered a reasonable surrogate for an output measure. In instances when the work performed on fixed price agreements is of relatively short duration, or if we are unable to make reasonably dependable estimates at the outset of the arrangement, we use the completed contract method of accounting whereby revenue is recognized when the work is completed. | ||||||||||||||||||||||||
Our use of the POC and proportional performance methods of accounting on professional services engagements requires estimates of the total project revenues, total project costs and the expected hours necessary to complete a project. Changes in estimates as a result of additional information or experience on a project as work progresses are inherent characteristics of the POC and proportional performance methods of accounting as we are exposed to various business risks in completing these engagements. The estimation process to support these methods of accounting is more difficult for projects of greater length and/or complexity. The judgments and estimates made in this area could: (i) have a significant effect on revenues recognized in any period by changing the amount and/or the timing of the revenue recognized; and/or (ii) impact the expected profitability of a project, including whether an overall loss on an arrangement has occurred. To mitigate the inherent risks in using the POC and proportional performance methods of accounting, we track our performance on projects and reevaluate the appropriateness of our estimates as part of our monthly accounting cycle. | ||||||||||||||||||||||||
Revenues from professional services contracts billed on a time-and-materials basis are recognized as the services are performed and as amounts due from clients are deemed collectible and contractually non-refundable. | ||||||||||||||||||||||||
Maintenance revenues are recognized ratably over the software maintenance period. Our maintenance consists primarily of client and product support, technical updates (e.g., bug fixes, etc.), and unspecified upgrades or enhancements to our software products.. If specified upgrades or enhancements are offered in an arrangement, which is rare, they are accounted for as a separate element of the software arrangement. | ||||||||||||||||||||||||
Deferred Revenue and Unbilled Accounts Receivable. Client payments and billed amounts due from clients in excess of revenue recognized are recorded as deferred revenue. Deferred revenue amounts expected to be recognized within the next twelve months are classified as current liabilities. Revenue recognized prior to the scheduled billing date is recorded as unbilled accounts receivable. | ||||||||||||||||||||||||
Postage. We pass through to our clients the cost of postage that is incurred on behalf of those clients, and typically require an advance payment on expected postage costs. These advance payments are included in client deposits in the accompanying Consolidated Balance Sheets (“Balance Sheets” or “Balance Sheet”) and are classified as current liabilities regardless of the contract period. We net the cost of postage against the postage reimbursements for those clients where we require advance deposits, and include the net amount (which is not material) in processing and related services revenues. | ||||||||||||||||||||||||
Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. As of December 31, 2014 and 2013, our cash equivalents consist primarily of institutional money market funds, commercial paper, and time deposits held at major banks. | ||||||||||||||||||||||||
As of December 31, 2014 and 2013, we had $4.7 million and $4.5 million, respectively, of restricted cash that serves to collateralize outstanding letters of credit. This restricted cash is included in cash and cash equivalents in our Balance Sheet. | ||||||||||||||||||||||||
Short-term Investments and Other Financial Instruments. Our financial instruments as of December 31, 2014 and 2013 include cash and cash equivalents, short-term investments, accounts receivable, accounts payable, an interest rate swap contract, and debt. Because of their short maturities, the carrying amounts of cash equivalents, accounts receivable, and accounts payable approximate their fair value. | ||||||||||||||||||||||||
Our short-term investments and certain of our cash equivalents are considered “available-for-sale” and are reported at fair value in our Balance Sheets, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Realized and unrealized gains and losses were not material in any period presented. | ||||||||||||||||||||||||
Primarily all short-term investments held by us as of December 31, 2014 and 2013 have contractual maturities of less than two years from the time of acquisition. Our short-term investments at December 31, 2014 and 2013 consisted almost entirely of fixed income securities. Proceeds from the sale/maturity of short-term investments in 2014, 2013, and 2012 were $197.5 million, $89.7 million, and $42.1 million, respectively. | ||||||||||||||||||||||||
The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets and liabilities measured at fair value (in thousands): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||
Money market funds | $ | 9,785 | $ | — | $ | 9,785 | $ | 13,761 | $ | — | $ | 13,761 | ||||||||||||
Commercial paper | — | 12,248 | 12,248 | — | 19,629 | 19,629 | ||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||
Corporate debt securities | — | 88,494 | 88,494 | — | 76,786 | 76,786 | ||||||||||||||||||
Municipal bonds | — | 9,945 | 9,945 | — | 29,106 | 29,106 | ||||||||||||||||||
U.S. government agency bonds | — | 11,313 | 11,313 | — | 18,050 | 18,050 | ||||||||||||||||||
Asset-backed securities | — | 10,336 | 10,336 | — | 4,209 | 4,209 | ||||||||||||||||||
Total | $ | 9,785 | $ | 132,336 | $ | 142,121 | $ | 13,761 | $ | 147,780 | $ | 161,541 | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Interest rate swap contracts (1) | $ | — | $ | — | $ | — | $ | — | $ | 154 | $ | 154 | ||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 154 | $ | 154 | ||||||||||||
-1 | As of December 31, 2013, the fair value of the interest rate swap contract was classified on our Balance Sheet in other current liabilities. | |||||||||||||||||||||||
Valuation inputs used to measure the fair values of our money market funds were derived from quoted market prices. The fair values of all other financial instruments are based upon pricing provided by third-party pricing services. These prices were derived from observable market inputs. | ||||||||||||||||||||||||
We have chosen not to measure our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value and estimated fair value of our debt as of the indicated periods (in thousands): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||
Credit Agreement (carrying value including current maturities) | $ | 120,000 | $ | 120,000 | $ | 135,000 | $ | 135,000 | ||||||||||||||||
Convertible debt (par value) | 150,000 | 178,920 | 150,000 | 199,800 | ||||||||||||||||||||
The fair value for our Credit Agreement was estimated using a discounted cash flow methodology, while the fair value for our convertible debt was estimated based upon quoted market prices or recent sales activity, both of which are considered Level 2 inputs. | ||||||||||||||||||||||||
Concentrations of Credit Risk. In the normal course of business, we are exposed to credit risk. The principal concentrations of credit risk relate to cash deposits, cash equivalents, short-term investments, and accounts receivable. We regularly monitor credit risk exposures and take steps to mitigate the likelihood of these exposures resulting in a loss. We hold our cash deposits, cash equivalents, and short-term investments with financial institutions we believe to be of sound financial condition. | ||||||||||||||||||||||||
We generally do not require collateral or other security to support accounts receivable. We evaluate the credit worthiness of our clients in conjunction with our revenue recognition processes, as well as through our ongoing collectibility assessment processes for accounts receivable. We maintain an allowance for doubtful accounts receivable based upon factors surrounding the credit risk of specific clients, historical trends, and other information. We use various judgments and estimates in determining the adequacy of the allowance for doubtful accounts receivable. See Note 3 for additional details of our concentration of accounts receivable. | ||||||||||||||||||||||||
The activity in our allowance for doubtful accounts receivable is as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance, beginning of year | $ | 2,359 | $ | 3,147 | $ | 2,421 | ||||||||||||||||||
Additions (reductions) to expense | 1,406 | (354 | ) | 1,039 | ||||||||||||||||||||
Write-offs | (465 | ) | (280 | ) | (174 | ) | ||||||||||||||||||
Other | 23 | (154 | ) | (139 | ) | |||||||||||||||||||
Balance, end of year | $ | 3,323 | $ | 2,359 | $ | 3,147 | ||||||||||||||||||
Property and Equipment. Property and equipment are recorded at cost (or at estimated fair value if acquired in a business combination) and are depreciated over their estimated useful lives ranging from three to ten years. Leasehold improvements are depreciated over the shorter of their economic life or the lease term. Depreciation expense is computed using the straight-line method for financial reporting purposes. Depreciation expense for all property and equipment is reflected in our accompanying Consolidated Statements of Income (“Income Statements”) separately in the aggregate and is not included in the cost of revenues or the other components of operating expenses. Depreciation for income tax purposes is computed using accelerated methods. | ||||||||||||||||||||||||
Software. We expend substantial amounts on R&D, particularly for new products and services, or for enhancements of existing products and services. For development of software products that are to be licensed by us, we expense all costs related to the development of the software until technological feasibility is established. For development of software to be used internally (e.g., processing systems software), we expense all costs prior to the application development stage. | ||||||||||||||||||||||||
During 2014, 2013, and 2012, we expended $104.7 million, $110.0 million, and $112.9 million, respectively, on R&D projects. We did not capitalize any R&D costs in 2014, 2013, or 2012, as the costs subject to capitalization during these periods were not material. We did not have any capitalized R&D costs included in our December 31, 2014 or 2013 Balance Sheets. | ||||||||||||||||||||||||
Realizability of Long-Lived Assets. We evaluate our long-lived assets, other than goodwill, for possible impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. A long-lived asset is impaired if estimated future undiscounted cash flows associated with that asset are insufficient to recover the carrying amount of the long-lived asset. If deemed impaired, the long-lived asset is written down to its fair value. | ||||||||||||||||||||||||
Goodwill. We evaluate our goodwill for impairment on an annual basis. In addition, we evaluate our goodwill on a more periodic basis (e.g., quarterly) if events occur or circumstances change that could indicate a potential impairment may have occurred. Goodwill is considered impaired if the carrying value of the reporting unit which includes the goodwill is greater than the estimated fair value of the reporting unit. | ||||||||||||||||||||||||
Contingencies. We accrue for a loss contingency when: (i) it is probable that an asset has been impaired, or a liability has been incurred; and (ii) the amount of the loss can be reasonably estimated. The determination of accounting for loss contingencies is subject to various judgments and estimates. We do not record the benefit from a gain contingency until the benefit is realized. | ||||||||||||||||||||||||
Earnings Per Common Share (“EPS”). Basic and diluted EPS amounts are presented on the face of our Income Statements. | ||||||||||||||||||||||||
Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of EPS pursuant to the two-class method. Unvested restricted stock awards under our stock incentive plans, granted prior to August 2008, contain nonforfeitable rights to cash dividends. As a result, basic EPS is computed by dividing net income available to common stockholders and participating securities (the numerators) by the respective weighted-average number of shares outstanding during the period (the denominators) using the two-class method. Under the two-class method, undistributed earnings are allocated among each class of common stock and participating security prior to the calculation of EPS. Diluted EPS is calculated similarly, except that the calculation includes the effect of potentially dilutive stock options and non-participating restricted stock awards. | ||||||||||||||||||||||||
The amounts attributed to both common stock and participating restricted stock used as the numerators in both the basic and diluted EPS calculations are as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Net income attributed to: | ||||||||||||||||||||||||
Common stock | $ | 36,959 | $ | 51,351 | $ | 48,853 | ||||||||||||||||||
Participating common restricted stock | — | — | 26 | |||||||||||||||||||||
Total | $ | 36,959 | $ | 51,351 | $ | 48,879 | ||||||||||||||||||
The weighted-average shares outstanding used in the basic and diluted EPS denominators related to common stock and participating restricted stock are as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Weighted-average shares outstanding – Basic: | ||||||||||||||||||||||||
Common stock | 32,449 | 32,117 | 32,142 | |||||||||||||||||||||
Participating common restricted stock | — | — | 17 | |||||||||||||||||||||
Total | 32,449 | 32,117 | 32,159 | |||||||||||||||||||||
Weighted-average shares outstanding – Diluted: | ||||||||||||||||||||||||
Common stock | 33,736 | 32,873 | 32,459 | |||||||||||||||||||||
Participating common restricted stock | — | — | 17 | |||||||||||||||||||||
Total | 33,736 | 32,873 | 32,476 | |||||||||||||||||||||
The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Basic weighted-average common shares | 32,449 | 32,117 | 32,142 | |||||||||||||||||||||
Dilutive effect of common stock options | — | 1 | 11 | |||||||||||||||||||||
Dilutive effect of non-participating restricted common stock | 569 | 550 | 306 | |||||||||||||||||||||
Dilutive effect of 2010 Convertible Notes | 717 | 205 | — | |||||||||||||||||||||
Dilutive effect of Stock Warrants | 1 | — | — | |||||||||||||||||||||
Diluted weighted-average common shares | 33,736 | 32,873 | 32,459 | |||||||||||||||||||||
The 2010 Convertible Notes have a dilutive effect in those quarterly periods in which our average stock price exceeds the current effective conversion price (see Note 5). | ||||||||||||||||||||||||
The Stock Warrants have a dilutive effect in those quarterly periods in which our average stock price exceeds the exercise price of $26.68 per warrant (under the treasury stock method), and are not subject to performance vesting conditions (see Note 10). | ||||||||||||||||||||||||
Potentially dilutive common shares related to stock options, non-participating unvested restricted stock, and Stock Warrants excluded from the computation of diluted EPS, as the effect was antidilutive, were not material in any period presented. | ||||||||||||||||||||||||
Stock-Based Compensation. Stock-based compensation represents the cost related to stock-based awards granted to employees and non-employee directors. We measure stock-based compensation cost at the grant date of the award, based on the estimated fair value of the award and recognize the cost (net of estimated forfeitures) over the requisite service period. Benefits of tax deductions in excess of recognized compensation expense, if any, are reported as a financing cash inflow rather than as an operating cash inflow. | ||||||||||||||||||||||||
Income Taxes. We account for income taxes using the asset and liability method. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||||||||||||||||||||||
Accounting Pronouncement Issued But Not Yet Effective. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is a single comprehensive model which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. Under the new guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The updated accounting guidance is effective for annual and interim reporting periods in fiscal years beginning after December 15, 2016. Early adoption is not permitted. An entity may choose to adopt this ASU either retrospectively or through a cumulative effect adjustment as of the start of the first period for which it applies the standard. We are currently in the process of evaluating the impact that this new guidance will have on our consolidated financial statements and our method of adoption. |
Segment_Reporting_and_Signific
Segment Reporting and Significant Concentration | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Reporting and Significant Concentration | 3 | Segment Reporting and Significant Concentration | ||||||||||
Segment Information. We have evaluated how our chief operating decision maker has organized our company for purposes of making operating decisions and assessing performance, and have concluded that as of December 31, 2014, we have one reportable segment. | ||||||||||||
Products and Services. Our products and services help companies with complex transaction-centric business models manage the opportunities and challenges associated with accurately capturing, managing, generating, and optimizing the revenue associated with the immense volumes of customer interactions and then manage the intricate nature of those customer relationships. Our core billing and customer care platform, Advanced Convergent Platform (“ACP”), is a pre-integrated platform, delivered in a private hosted cloud environment. We generate a substantial percentage of our revenues by providing our ACP processing and customer interaction management solutions, and related software products (e.g., Advanced Customer Service Representative, Workforce Express, etc.) to the North American cable and satellite markets. Additionally, we license certain software products (e.g., WBMS, TSM, and Singleview) and provide our professional services to implement, configure and maintain these software products, and allow clients to effectively roll out new products as well as attract and retain customers. | ||||||||||||
Geographic Regions. For 2014 and 2013, 85% of our revenues were attributable to our operations in the Americas. We use the location of the client as the basis of attributing revenues to individual regions. | ||||||||||||
Financial information relating to our operations by geographic region is as follows (in thousands): | ||||||||||||
Total Revenues: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Americas (principally the U.S.) | $ | 636,482 | $ | 633,163 | $ | 652,008 | ||||||
Europe, Middle East and Africa (principally Europe) | 79,535 | 80,527 | 73,113 | |||||||||
Asia Pacific | 35,269 | 33,778 | 31,745 | |||||||||
Total revenues | $ | 751,286 | $ | 747,468 | $ | 756,866 | ||||||
Property and Equipment: | As of December 31, | |||||||||||
2014 | 2013 | |||||||||||
Americas (principally the U.S.) | $ | 31,912 | $ | 27,115 | ||||||||
Europe, Middle East and Africa | 3,618 | 4,280 | ||||||||||
Asia Pacific | 2,796 | 3,666 | ||||||||||
Total property and equipment | $ | 38,326 | $ | 35,061 | ||||||||
Significant Clients and Industry Concentration. A large percentage of our historical revenues have been generated from our largest clients, which are Comcast Corporation (“Comcast”), DISH Network Corporation (“DISH”), and Time Warner Cable Inc. (“Time Warner”). | ||||||||||||
Revenues from these clients represented the following percentages of our total revenues for the following years: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Comcast | 22 | % | 19 | % | 20 | % | ||||||
DISH | 15 | % | 15 | % | 14 | % | ||||||
Time Warner | 11 | % | 11 | % | 10 | % | ||||||
As of December 31, 2014 and 2013, the percentage of net billed accounts receivable balances attributable to these clients were as follows: | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Comcast | 21 | % | 21 | % | ||||||||
DISH | 13 | % | 14 | % | ||||||||
Time Warner | 12 | % | 9 | % | ||||||||
We expect to continue to generate a significant percentage of our future revenues from a limited number of clients, including Comcast, DISH, and Time Warner. There are inherent risks whenever a large percentage of total revenues are concentrated with a limited number of clients. Should a significant client: (i) terminate or fail to renew their contracts with us, in whole or in part for any reason; (ii) significantly reduce the number of customer accounts processed on our solutions, the price paid for our services, or the scope of services that we provide; or (iii) experience significant financial or operating difficulties, it could have a material adverse effect on our financial position and results of operations. |
LongLived_Assets
Long-Lived Assets | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Long-Lived Assets | 4 | Long-Lived Assets | ||||||||||||||||||||||
Property and Equipment. Property and equipment at December 31 consisted of the following (in thousands, except years): | ||||||||||||||||||||||||
Useful | 2014 | 2013 | ||||||||||||||||||||||
Lives (years) | ||||||||||||||||||||||||
Computer equipment | 5-Mar | $ | 96,749 | $ | 89,605 | |||||||||||||||||||
Leasehold improvements | 10-May | 16,566 | 15,793 | |||||||||||||||||||||
Operating equipment | 8-Mar | 55,501 | 48,759 | |||||||||||||||||||||
Furniture and fixtures | 8-Mar | 7,531 | 10,426 | |||||||||||||||||||||
Capital projects in process | — | 44 | — | |||||||||||||||||||||
176,391 | 164,583 | |||||||||||||||||||||||
Less—accumulated depreciation | (138,065 | ) | (129,522 | ) | ||||||||||||||||||||
Property and equipment, net | $ | 38,326 | $ | 35,061 | ||||||||||||||||||||
Goodwill. We do not have any intangible assets with indefinite lives other than goodwill. A rollforward of goodwill in 2014 and 2013 is as follows (in thousands): | ||||||||||||||||||||||||
January 1, 2013 balance | $ | 233,365 | ||||||||||||||||||||||
Adjustments for the dispositions of business operations | (1,967 | ) | ||||||||||||||||||||||
Revisions related to prior acquisitions | (164 | ) | ||||||||||||||||||||||
Effects of changes in foreign currency exchange rates | 2,365 | |||||||||||||||||||||||
December 31, 2013 balance | 233,599 | |||||||||||||||||||||||
Revisions related to prior acquisitions | (59 | ) | ||||||||||||||||||||||
Effects of changes in foreign currency exchange rates | (8,271 | ) | ||||||||||||||||||||||
December 31, 2014 balance | $ | 225,269 | ||||||||||||||||||||||
During 2013, we sold a small print operation and our marketing analytics business, which resulted in an adjustment to our goodwill balance of $2.0 million. The net proceeds from these dispositions were $4.5 million and the net loss from the sales was approximately $3 million. | ||||||||||||||||||||||||
Other Intangible Assets. Our intangible assets subject to ongoing amortization consist of client contracts and software. | ||||||||||||||||||||||||
Client Contracts | ||||||||||||||||||||||||
Client contracts consist of the following: (i) investments in client contracts; (ii) direct and incremental costs that we have capitalized related to contractual arrangements where we have deferred revenues to convert or set-up client customers onto our outsourced solutions; and (iii) client contracts acquired in business combinations. | ||||||||||||||||||||||||
As of December 31, 2014 and 2013, the carrying values of these assets were as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Investments in client contracts (1) | $ | 34,657 | $ | (23,907 | ) | $ | 10,750 | $ | 27,370 | $ | (20,345 | ) | $ | 7,025 | ||||||||||
Capitalized costs (2) | 6,667 | (3,463 | ) | 3,204 | 5,003 | (3,340 | ) | 1,663 | ||||||||||||||||
Acquired client contracts (3) | 94,164 | (61,215 | ) | 32,949 | 98,200 | (51,697 | ) | 46,503 | ||||||||||||||||
Total client contracts | $ | 135,488 | $ | (88,585 | ) | $ | 46,903 | $ | 130,573 | $ | (75,382 | ) | $ | 55,191 | ||||||||||
The aggregate amortization related to client contracts included in our operations for 2014, 2013, and 2012, was as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Investments in client contracts (1) | $ | 6,409 | $ | 6,181 | $ | 7,591 | ||||||||||||||||||
Capitalized costs (2) | 1,007 | 2,365 | 4,172 | |||||||||||||||||||||
Acquired client contracts (3) | 11,951 | 14,999 | 17,017 | |||||||||||||||||||||
Total client contracts | $ | 19,367 | $ | 23,545 | $ | 28,780 | ||||||||||||||||||
-1 | Investments in client contracts consist principally of incentives provided to new or existing clients to convert their customer accounts to, or retain their customer’s accounts on, our customer care and billing systems. Investments in client contracts related to client incentives are amortized ratably over the lives of the respective client contracts, which as of December 31, 2014, have termination dates that range from 2015 through 2020. Amortization of the investments in client contracts related to client incentives is reflected as a reduction in processing and related services revenues in our Income Statements. | |||||||||||||||||||||||
-2 | Capitalized costs related to client conversion/set-up services related to long-term processing or managed services arrangements are generally amortized proportionately over the contract period that the processing or managed services are expected to be provided, and are primarily reflected in cost of processing and related services in our Income Statements. | |||||||||||||||||||||||
-3 | Acquired client contracts represent assets acquired in our prior business acquisitions. Acquired client contracts are being amortized over their estimated useful lives ranging from five to ten years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized. Classification of the amortization of acquired client contracts generally follows where the acquired business’ cost of revenues are categorized in our Income Statements. | |||||||||||||||||||||||
The weighted-average remaining amortization period of client contracts as of December 31, 2014 was approximately 63 months. Based on the December 31, 2014 net carrying value of these intangible assets, the estimated amortization for each of the five succeeding fiscal years ending December 31 will be: 2015 – $14.8 million; 2016 – $10.5 million; 2017 – $8.3 million; 2018 – $6.2 million; and 2019 – $4.2 million. | ||||||||||||||||||||||||
Software | ||||||||||||||||||||||||
Software consists of: (i) software and similar intellectual property rights from various business combinations; and (ii) internal use software. | ||||||||||||||||||||||||
As of December 31, 2014 and 2013, the carrying values of these assets were as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Acquired software (4) | $ | 67,012 | $ | (56,806 | ) | $ | 10,206 | $ | 67,975 | $ | (53,820 | ) | $ | 14,155 | ||||||||||
Internal use software (5) | 64,517 | (29,991 | ) | 34,526 | 53,094 | (23,684 | ) | 29,410 | ||||||||||||||||
Total software | $ | 131,529 | $ | (86,797 | ) | $ | 44,732 | $ | 121,069 | $ | (77,504 | ) | $ | 43,565 | ||||||||||
The aggregate amortization related to software included in our operations for 2014, 2013, and 2012, was as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Acquired software (4) | $ | 3,457 | $ | 4,221 | $ | 5,700 | ||||||||||||||||||
Internal use software (5) | 8,404 | 7,633 | 6,985 | |||||||||||||||||||||
Total software | $ | 11,861 | $ | 11,854 | $ | 12,685 | ||||||||||||||||||
-4 | Acquired software represents the software intangible assets acquired in our prior business acquisitions, which are being amortized over their estimated useful lives ranging from five to ten years. | |||||||||||||||||||||||
-5 | Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from twelve months to ten years. | |||||||||||||||||||||||
The weighted-average remaining amortization period of the software intangible assets as of December 31, 2014 was approximately 78 months. Based on the December 31, 2014 net carrying value of these intangible assets, the estimated amortization for each of the five succeeding fiscal years ending December 31 will be: 2015 – $10.5 million; 2016 – $8.0 million; 2017 – $6.6 million; 2018 – $5.3 million; and 2019 – $3.6 million. |
Debt
Debt | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Debt | 5 | Debt | |||||||||||||||||||
As of December 31, 2014 and 2013, our long-term debt was as follows (in thousands): | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
2012 Credit Agreement: | |||||||||||||||||||||
Term loan, due November 2017 (or December 2016 if certain conditions exist – see below), interest at adjusted LIBOR plus 2.00% (combined rate of 2.25% at December 31, 2014) | $ | 120,000 | $ | 135,000 | |||||||||||||||||
$100 million revolving loan facility, due November 2017 (or December 2016 if certain conditions exist – see below), interest at adjusted LIBOR plus applicable margin | — | — | |||||||||||||||||||
Convertible Debt Securities: | |||||||||||||||||||||
2010 Convertible Notes – senior subordinated convertible notes; due March 1, 2017; cash interest at 3.0%; net of unamortized OID of $14,169 and $19,950, respectively | 135,831 | 130,050 | |||||||||||||||||||
255,831 | 265,050 | ||||||||||||||||||||
Current portion of long-term debt | (22,500 | ) | (15,000 | ) | |||||||||||||||||
Total long-term debt, net | $ | 233,331 | $ | 250,050 | |||||||||||||||||
2012 Credit Agreement. In 2012, we entered into an amended and restated $250 million credit agreement with several financial institutions (the “2012 Credit Agreement”). The 2012 Credit Agreement provides borrowings by us in the form of: (i) a $150 million aggregate principal five-year term loan (the “2012 Term Loan”); and (ii) a $100 million aggregate principal five-year revolving loan facility (the “2012 Revolver”). | |||||||||||||||||||||
The interest rates under the 2012 Credit Agreement are based upon an adjusted LIBOR rate plus an applicable margin, or an alternate base rate plus an applicable margin. The applicable margin for the 2012 Term Loan and 2012 Revolver based upon an adjusted LIBOR rate ranges from 2.00% - 2.75%, depending on our then-current leverage ratio. We have the option of selecting the length of time (ranging from one to six months) that we lock in the LIBOR contract rate. The applicable margin for the 2012 Term Loan and 2012 Revolver based upon an alternate base rate ranges from 1.00% - 1.75%, depending on our then-current leverage ratio. As of December 31, 2014, our combined interest rate (LIBOR plus applicable margin) for the Term Loan is 2.25% per annum. We pay a commitment fee of 0.375% on the average daily unused amount of the 2012 Revolver. At December 31, 2014, we had no borrowing outstanding on our 2012 Revolver and had the entire $100 million available to us. | |||||||||||||||||||||
The 2012 Credit Agreement includes mandatory principal repayments (payable quarterly) in each year of the agreement, with the remaining principal balance due at maturity. During 2014, we made $15 million mandatory principal repayments on the 2012 Term Loan. The 2012 Credit Agreement has no prepayment penalties and requires mandatory repayments under certain circumstances, including: (i) asset sales or casualty proceeds; and (ii) proceeds of debt or preferred stock issuances. The 2012 Credit Agreement also provides for an early termination date of December 1, 2016, if our 2010 Convertible Notes are still outstanding and we do not have combined unrestricted cash and cash equivalents and unused availability under the 2012 Revolver of at least $200 million in the aggregate as of that date. | |||||||||||||||||||||
The 2012 Credit Agreement contains customary affirmative covenants such as: (i) filing of quarterly and annual reports and (ii) maintenance of credit ratings. In addition, the Credit Agreement has customary negative covenants that places limits on our ability to: (i) incur additional indebtedness; (ii) create liens on our property; (iii) enter into sale and leaseback transactions; (iv) make investments; (v) enter into mergers and consolidations; (vi) sell assets; (vii) declare dividends or repurchase shares; (viii) engage in certain transactions with affiliates; (ix) prepay certain indebtedness, including our 2010 Convertible Notes; and (x) issue capital stock of subsidiaries. We must also meet certain financial covenants to include: (i) a maximum total leverage ratio; (ii) a maximum secured leverage ratio; (iii) a minimum interest coverage ratio; and (iv) a limitation on capital expenditures. As of December 31, 2014 we were in compliance with the financial ratios and other covenants related to the 2012 Credit Agreement. | |||||||||||||||||||||
In conjunction with the 2012 Credit Agreement, we also entered into a security agreement in favor of a financial institution as collateral agent (the “Security Agreement”). Under the Security Agreement and 2012 Credit Agreement, all of CSG’s domestic subsidiaries have guaranteed our obligations, and CSG and such subsidiaries have pledged substantially all of our assets to secure the obligations under the 2012 Credit Agreement and such guarantees. | |||||||||||||||||||||
2010 Convertible Notes. In 2010, we completed an offering of $150 million of 3.0% senior subordinated convertible notes due March 1, 2017 (the “2010 Convertible Notes”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The 2010 Convertible Notes are unsecured obligations, subordinated to any future senior indebtedness and senior to any future junior subordinated debt. The 2010 Convertible Notes were issued at a price of 100% of their par value and bear interest at a rate of 3.0% per annum, which is payable semiannually in arrears on March 1 and September 1 of each year. | |||||||||||||||||||||
The 2010 Convertible Notes are convertible into our common stock, under the specified conditions and settlement terms outlined below. As a result of us declaring a quarterly cash dividend beginning in June 2013, the conversion rate has also been adjusted quarterly. As of December 31, 2014, the conversion rate was 42.6404 shares of our common stock per $1,000 par value of the 2010 Convertible Notes (equivalent to a conversion price of $23.45 per share of our common stock). The Indenture related to the 2010 Convertible Notes (“Notes Indenture”) includes anti-dilution provisions for the holders such that the conversion rate (and thus the initial conversion price) can be adjusted in the future for certain events, to include stock dividends, the issuance of rights, options or warrants to purchase our common stock at a price below the then-current market price, and certain distributions of common stock, property or rights, options or warrants to acquire our common stock to all or substantially all holders of our common stock. Additionally, the conversion rate may be adjusted prior to the maturity date in connection with the occurrence of specified corporate transactions for a “make-whole” premium as set forth in the Notes Indenture. | |||||||||||||||||||||
Prior to September 1, 2016, holders of the 2010 Convertible Notes can convert their securities: (i) at any time the price of our common stock trades over $30.49 per share (130% of the $23.45 conversion price) for a specified period of time; (ii) at any time the trading price of the 2010 Convertible Notes falls below 98% of the average conversion value for the 2010 Convertible Notes for a specified period of time; and (iii) at any time upon the occurrence of specified corporate transactions, to include a change of control (as defined in the Notes Indenture). On or after September 1, 2016, the holders of the 2010 Convertible Notes can elect to convert their securities at any time, with the settlement occurring on March 1, 2017. As of December 31, 2014, none of the contingent conversion features have been achieved, and thus, the 2010 Convertible Notes are not convertible by the holders. | |||||||||||||||||||||
Upon conversion of the 2010 Convertible Notes, we will settle our conversion obligation as follows: (i) we will pay cash for 100% of the par value of the 2010 Convertible Notes that are converted; and (ii) to the extent the value of our conversion obligation exceeds the par value, we will satisfy the remaining conversion obligation in our common stock, cash or any combination of our common stock and cash. Although not convertible as of December 31, 2014, our conversion obligation exceeded the par value of the 2010 Convertible Notes by approximately $10 million. | |||||||||||||||||||||
The OID related to the 2010 Convertible Notes of $38.4 million, as a result of an effective interest rate of the liability component of 7.75% compared to the cash interest rate of 3.0%, is being amortized to interest expense through March 1, 2017, the maturity date of the 2010 Convertible Notes. | |||||||||||||||||||||
Estimated Maturities on Long-Term Debt. | |||||||||||||||||||||
As of December 31, 2014, the estimated maturities of our long-term debt, based upon: (1) the mandatory repayment schedule for the 2012 Term Loan; and (2) the expected remaining life of the 2010 Convertible Notes, was as follows (in thousands): | |||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||
2012 Term Loan | $ | 22,500 | $ | 22,500 | $ | 75,000 | $ | — | $ | — | |||||||||||
2010 Convertible Notes | — | — | 150,000 | — | — | ||||||||||||||||
Total long-term debt repayments | $ | 22,500 | $ | 22,500 | $ | 225,000 | $ | — | $ | — | |||||||||||
Deferred Financing Costs. As of December 31, 2014, net deferred financing costs related to the 2012 Credit Agreement were $4.2 million, and are being amortized to interest expense over the related term of the 2012 Credit Agreement (through November 2017). As of December 31, 2014, net deferred financing costs related to the 2010 Convertible Notes were $1.3 million, and are being amortized to interest expense through maturity (March 2017). The net deferred financing costs are reflected in Other Assets in our Balance Sheets. Interest expense for 2014, 2013 and 2012 includes amortization of deferred financing costs of $2.5 million, $2.6 million, and $2.7 million, respectively. The weighted-average interest rate on our debt borrowings, including amortization of OID, amortization of deferred financing costs, and commitment fees on a revolving loan facility, for 2014, 2013, and 2012, was approximately 6%, 5%, and 6%, respectively. | |||||||||||||||||||||
2015 Credit Agreement. In February 2015, we entered into an amended and restated $350 million credit agreement with several financial institutions (the “2015 Credit Agreement”) to replace the 2012 Credit Agreement. The key benefits of this refinancing include: (i) an increase in the tenor of the loan from November 2017 to February 2020; (ii) an increase in the amount of the revolving loan facility from $100 million to $200 million; (iii) a reduction in the interest rate and other fees; and (iv) financial and other restrictive covenants that are better or equal to that of the 2012 Credit Agreement. | |||||||||||||||||||||
The 2015 Credit Agreement provides borrowings in the form of: (i) a $150 million aggregate principal five-year term loan (the “2015 Term Loan”); and (ii) a $200 million aggregate principal five-year revolving loan facility (the “2015 Revolver”). With the $150 million proceeds from the 2015 Term Loan, we repaid the outstanding $120 million balance from term loan under the 2012 Credit Agreement, resulting in a net increase of available cash by $30 million, a portion of which was used to pay certain fees and expenses in connection with the refinancing. | |||||||||||||||||||||
The interest rates under the 2015 Credit Agreement are based upon our choice of an adjusted LIBOR rate plus an applicable margin of 1.75% - 2.75%, or an alternate base rate plus an applicable margin of 0.75% -1.75%, with the applicable margin, depending on our then-net secured total leverage ratio. We will pay a commitment fee of 0.250% - 0.375% of the average daily unused amount of the 2015 Revolver, with the commitment fee rate also dependent upon our then-net secured total leverage ratio. At the inception of the 2015 Credit Agreement, our interest rate on the 2015 Term Loan is 1.97% (adjusted LIBOR plus 1.75% per annum), effective through March 31, 2015, and our commitment fee on the unused 2015 Revolver is 0.25%. As of the date of this filing, we had no borrowing outstanding on our 2015 Revolver. | |||||||||||||||||||||
The 2015 Credit Agreement includes mandatory repayments of the aggregate principal amount of the 2015 Term Loan (payable quarterly) for the first (5% of total), second (5% of total), third (10% of total), fourth (15% of total), and fifth years (15% of total), with the remaining principal balance due at maturity (50% of total). The 2015 Credit Agreement has no prepayment penalties and requires mandatory repayments under certain circumstances, including: (i) asset sales or casualty proceeds; and (ii) proceeds of debt or preferred stock issuances. | |||||||||||||||||||||
The 2015 Credit Agreement contains customary affirmative covenants. In addition, the 2015 Credit Agreement has customary negative covenants that places limits on our ability to: (i) incur additional indebtedness; (ii) create liens on its property; (iii) make investments; (iv) enter into mergers and consolidations; (v) sell assets; (vi) declare dividends or repurchase shares; (vii) engage in certain transactions with affiliates; and (viii) prepay certain indebtedness; and (ix) issue capital stock of subsidiaries. We must also meet certain financial covenants to include: (i) a maximum total leverage ratio; (ii) a maximum secured leverage ratio; (iii) a minimum interest coverage ratio; and (iv) a limitation on capital expenditures. | |||||||||||||||||||||
In conjunction with the 2015 Credit Agreement, we have pledged assets under a security agreement in favor of a financial institution as collateral agent (the “Security Agreement”). Under the Security Agreement and 2015 Credit Agreement, all of CSG’s domestic subsidiaries have guaranteed its obligations, and CSG and such subsidiaries have pledged substantially all of its assets to secure the obligations under the 2015 Credit Agreement and such guarantees. | |||||||||||||||||||||
In conjunction with the closing of the 2015 Credit Agreement, we incurred financing costs of $2.4 million, which along with the remaining deferred financing costs for the 2012 Credit Agreement, will be amortized to interest expense using the effective interest method over the related term of the 2015 Credit Agreement. | |||||||||||||||||||||
Restructuring_and_Reorganizati
Restructuring and Reorganization Charges | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring And Related Activities [Abstract] | |||||||||||||||||||||
Restructuring and Reorganization Charges | 6 | Restructuring and Reorganization Charges | |||||||||||||||||||
Restructuring and reorganization charges are expenses that generally result from cost reduction initiatives and/or significant changes to our business, to include such things as involuntary employee terminations, changes in management structure, divestitures of businesses, facility consolidations and abandonments, and fundamental reorganizations impacting operational focus and direction. The following are the key restructuring and reorganizational activities we incurred over the last three years that have impacted our results from operations: | |||||||||||||||||||||
· | During 2012, we implemented the following cost reduction and efficiency initiatives: | ||||||||||||||||||||
· | We abandoned one of our current office facilities to improve our space utilization, resulting in a restructuring charge of $0.5 million. | ||||||||||||||||||||
· | We recorded $0.6 million of restructuring expenses related primarily to members of Ascade management leaving following the successful close of the transaction. | ||||||||||||||||||||
· | We reduced our workforce by approximately 40 employees, primarily in North America, as a result of organizational changes, elimination of positions, and reskilling of certain roles. As a result, we recorded $1.0 million of restructuring expenses. | ||||||||||||||||||||
· | During 2013 we executed the following restructuring activities: | ||||||||||||||||||||
· | In 2013, we reduced our workforce by approximately 160 employees world-wide. These actions were taken to further align our workforce around our near- and long-term business opportunities. As a result, we incurred restructuring charges related to these involuntary terminations of $5.6 million. | ||||||||||||||||||||
· | We disposed of a small print operation and our marketing analytics business, resulting in $3.6 million of restructuring charges, including a $3 million loss from the sale. | ||||||||||||||||||||
· | We terminated our previously frozen defined benefit pension plan resulting in $3.2 million of restructuring expense. | ||||||||||||||||||||
· | During 2014 we completed the following restructuring and reorganization activities: | ||||||||||||||||||||
· | In July 2014, in conjunction with the reorganization of our Content Direct solution to facilitate its integration with our other offerings, we terminated an incentive arrangement with certain employees to develop and then grow our Content Direct solution (the “Arrangement”) in exchange for a one-time cash payment of $8.0 million, which is reflected as a reorganization charge in the third quarter of 2014. The Arrangement included certain liquidation options for the employees in the event of a change of control of the Content Direct solution. Because of the contingent nature of the Arrangement (i.e., payable only upon the occurrence of a change of control related to the Content Direct solution), we had not recognized any amounts in our financial statements related to this matter up to this point. | ||||||||||||||||||||
· | During 2014, we reduced our workforce by approximately 60 employees world-wide, to further align our workforce around our near- and long-term business opportunities. As a result, we recorded restructuring expense of $5.6 million. | ||||||||||||||||||||
· | During 2014, we abandoned space at two of our locations to improve our space utilization, resulting in a restructuring charge of $1.1 million. | ||||||||||||||||||||
The activities discussed above resulted in total charges for 2014, 2013, and 2012 of $14.0 million, $12.4 million, and $2.5 million, respectively, which have been reflected as a separate line item in our Income Statements. | |||||||||||||||||||||
The activity in the business restructuring and reorganization reserves during 2014, 2013, and 2012 is as follows (in thousands): | |||||||||||||||||||||
Termination | Facilities | Disposition of Business Operations | Other | Total | |||||||||||||||||
Benefits | Abandonment | ||||||||||||||||||||
January 1, 2012, balance | $ | 3,771 | $ | 489 | $ | — | $ | — | $ | 4,260 | |||||||||||
Charged to expense during year | 1,835 | 630 | — | 4 | 2,469 | ||||||||||||||||
Cash payments | (3,704 | ) | — | — | (4 | ) | (3,708 | ) | |||||||||||||
Other | 15 | (666 | ) | — | — | (651 | ) | ||||||||||||||
December 31, 2012, balance | 1,917 | (453 | ) | — | — | $ | 2,370 | ||||||||||||||
Charged to expense during year | 5,577 | — | 3,588 | 3,240 | 12,405 | ||||||||||||||||
Cash payments | (3,741 | ) | — | (571 | ) | (19 | ) | (4,331 | ) | ||||||||||||
Adjustment for the loss on the disposition of business operations | — | — | — | (3,017 | ) | ||||||||||||||||
(3,017 | ) | ||||||||||||||||||||
Adjustment for the loss on termination of pension plan | — | — | — | (3,221 | ) | (3,221 | ) | ||||||||||||||
Other | 15 | (453 | ) | — | — | (489 | ) | ||||||||||||||
December 31, 2013, balance | 3,717 | — | — | — | 3,717 | ||||||||||||||||
Charged to expense during year | 5,589 | 1,146 | (222 | ) | 7,456 | 13,969 | |||||||||||||||
Cash payments | (6,421 | ) | — | — | (8,000 | ) | (14,421 | ) | |||||||||||||
Adjustment for the loss on the disposition of business operations | — | — | — | 222 | |||||||||||||||||
222 | |||||||||||||||||||||
Other | (66 | ) | (33 | ) | — | 560 | 461 | ||||||||||||||
December 31, 2014, balance | $ | 2,819 | $ | 1,113 | $ | — | $ | 16 | $ | 3,948 | |||||||||||
As of December 31, 2014, $3.1 million of the business restructuring and reorganization reserves were included in current liabilities. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | 7 | Income Taxes | ||||||||||
Income Tax Provision/(Benefit). The components of net income from continuing operations before income taxes are as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 70,737 | $ | 63,278 | $ | 103,917 | ||||||
Foreign | (9,215 | ) | (1,759 | ) | (26,693 | ) | ||||||
Total | $ | 61,522 | $ | 61,519 | $ | 77,224 | ||||||
The income tax provision related to continuing operations consists of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 19,221 | $ | 7,260 | $ | 32,121 | ||||||
State | 2,348 | 453 | 4,133 | |||||||||
Foreign | 2,953 | 4,273 | 2,658 | |||||||||
24,522 | 11,986 | 38,912 | ||||||||||
Deferred: | ||||||||||||
Federal | 1,139 | 1,130 | (832 | ) | ||||||||
State | 837 | 2,329 | (3,977 | ) | ||||||||
Foreign | (1,935 | ) | (5,277 | ) | (5,758 | ) | ||||||
41 | (1,818 | ) | (10,567 | ) | ||||||||
Total income tax provision | $ | 24,563 | $ | 10,168 | $ | 28,345 | ||||||
Included in the deferred state income tax provision amount for 2012 in the table above is $(3.1) million related to the impact of an enacted state income tax law change. | ||||||||||||
The difference between our income tax provision computed at the statutory Federal income tax rate and our financial statement income tax related to continuing operations is summarized as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Provision at Federal rate of 35% | $ | 21,533 | $ | 21,532 | $ | 27,028 | ||||||
State income taxes, net of Federal impact | 2,070 | 1,808 | 101 | |||||||||
Research and experimentation credits | (2,045 | ) | (16,683 | ) | (3,651 | ) | ||||||
Tax uncertainties | 596 | 4,878 | 1,333 | |||||||||
Section 199 manufacturing deduction | (1,936 | ) | (2,263 | ) | (4,246 | ) | ||||||
Foreign rate differential | 2,847 | 1,133 | 3,108 | |||||||||
Valuation allowance for deferred tax assets | 3,602 | (3,312 | ) | 3,550 | ||||||||
Other impact of foreign operations | (3,555 | ) | 2,088 | 672 | ||||||||
Other | 1,451 | 987 | 450 | |||||||||
Total income tax provision | $ | 24,563 | $ | 10,168 | $ | 28,345 | ||||||
Our effective income tax rate for 2013 was unusually low driven mainly by incremental R&D income tax credits claimed for the development activities from previous years and partially by the reduction of certain tax allowances related to foreign operations. | ||||||||||||
We have undistributed earnings of approximately $33 million from certain foreign subsidiaries. We intend to indefinitely reinvest these foreign earnings, therefore, a provision has not been made for income taxes that might be payable upon remittance of such earnings. Determination of the amount of unrecognized deferred tax liability on unremitted foreign earnings is not practicable because of the complexities of the hypothetical calculation. | ||||||||||||
Our research and experimentation (R&D) credits increased from 2012 to 2013 primarily due to the recording of approximately $6 million of R&D credits generated in 2012 but recorded in 2013, due to the timing of the execution of the American Taxpayer Relief Act of 2012, and the recognition of approximately $5 million of incremental R&D credits due to revised calculations for development activities in 2009 and 2010. The 2012 R&D credit amount above is the result of a revised calculation for 2011. The 2013 provision for valuation allowance for deferred tax assets includes an approximately $6 million reduction of certain tax allowances related to our ability to realize certain foreign net operating losses. | ||||||||||||
Deferred Income Taxes. Net deferred income tax liabilities as of December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets | $ | 77,201 | $ | 68,829 | ||||||||
Deferred income tax liabilities | (55,045 | ) | (48,830 | ) | ||||||||
Valuation allowance | (20,507 | ) | (17,741 | ) | ||||||||
Net deferred income tax assets | $ | 1,649 | $ | 2,258 | ||||||||
The components of our net deferred income tax assets (liabilities) as of December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Net current deferred income tax assets: | ||||||||||||
Accrued expenses and reserves | $ | 10,221 | $ | 12,429 | ||||||||
Stock-based compensation | 4,425 | 3,929 | ||||||||||
Total current deferred income tax assets | 14,646 | 16,358 | ||||||||||
Less: valuation allowance | (1,442 | ) | (1,273 | ) | ||||||||
Net current deferred income tax assets | $ | 13,204 | $ | 15,085 | ||||||||
Net non-current deferred income tax assets: | ||||||||||||
Software | $ | 809 | $ | - | ||||||||
Client contracts and related intangibles | (5,252 | ) | $ | (952 | ) | |||||||
NOL carryforwards | 18,527 | 11,505 | ||||||||||
Property and equipment | 11,470 | 4,097 | ||||||||||
Deferred revenue | 550 | 1,209 | ||||||||||
Facility abandonment | 262 | 189 | ||||||||||
Other | 305 | 678 | ||||||||||
Total non-current deferred income tax assets | 26,671 | 16,726 | ||||||||||
Less: valuation allowance | (17,781 | ) | (9,279 | ) | ||||||||
Net non-current deferred income tax assets | $ | 8,890 | $ | 7,447 | ||||||||
Net non-current deferred income tax liabilities: | ||||||||||||
Software | $ | 211 | $ | 88 | ||||||||
Client contracts and related intangibles | 3,127 | (4,104 | ) | |||||||||
Goodwill | (6,747 | ) | (3,846 | ) | ||||||||
NOL carryforwards | 23,298 | 27,500 | ||||||||||
Property and equipment | (15,048 | ) | (4,812 | ) | ||||||||
Convertible debt securities | (27,708 | ) | (35,116 | ) | ||||||||
Deferred revenue | 961 | 4,470 | ||||||||||
Contingent payments | 840 | 836 | ||||||||||
Facility abandonment | 2,194 | 1,892 | ||||||||||
Other | (289 | ) | 7 | |||||||||
Total non-current deferred income tax liabilities | (19,161 | ) | (13,085 | ) | ||||||||
Less: valuation allowance | (1,284 | ) | (7,189 | ) | ||||||||
Net non-current deferred income tax liabilities | $ | (20,445 | ) | $ | (20,274 | ) | ||||||
We regularly assess the likelihood of the future realization of our deferred income tax assets. To the extent we believe that it is more likely than not that a deferred income tax asset will not be realized, a valuation allowance is established. As of December 31, 2014, we believe that between: (i) carryback opportunities to past periods with taxable income; and (ii) sufficient taxable income to be generated in the future, we will realize 100% of the benefit of our U.S. Federal deferred income tax assets, thus no valuation allowance has been established. As of December 31, 2014, we have deferred income tax assets related to state and foreign income tax jurisdictions of $2.7 million and $35.6 million, respectively, and have established valuation allowances against those deferred income tax assets of $2.5 million and $18.0 million, respectively. | ||||||||||||
As of December 31, 2014 and 2013, we have an acquired U.S. Federal NOL carryforward of approximately $51 million which will begin to expire in 2019 and can be utilized through 2030. The acquired U.S. Federal NOL carryforward is attributable to the pre-acquisition periods of acquired subsidiaries. The annual utilization of this U.S. Federal NOL carryforward is limited pursuant to Section 382 of the Internal Revenue Code of 1986, as amended. In addition, as of December 31, 2014 and 2013, we have: (i) state NOL carryforwards of approximately $63 million and $50 million, respectively, which will expire beginning in 2015 and end in 2035; and (ii) foreign subsidiary NOL carryforwards of approximately $96 million and $90 million, respectively, which will expire beginning in 2017, with a portion of the losses available over an indefinite period of time. | ||||||||||||
Our 2004 Convertible Debt Securities, which we fully extinguished in 2011, were subject to special U.S. Treasury regulations governing contingent payment debt instruments. These regulations allowed us to take a tax deduction for interest expense on our U.S. Federal income tax return at a constant rate of 9.09% (subject to certain adjustments), compounded semi-annually, which represented the estimated yield on comparable non-contingent, non-convertible, fixed-rate debt instruments with terms and conditions otherwise similar to the 2004 Convertible Debt Securities. This interest expense tax deduction was greater than the interest expense reflected in the accompanying Income Statements, thus creating a deferred income tax liability. The extinguishment of the 2004 Convertible Debt Securities resulted in: (i) the holders of the 2004 Convertible Debt Securities not having the ability to achieve the 9.09% target yield, and (ii) a requirement for us to pay an amount equal to the cumulative deferred income tax liability to the U.S. tax authorities (without interest or penalties). During the third and fourth quarters of 2011, we paid cash of approximately $6 million related to the deferred income tax liabilities associated with the 2004 Convertible Debt Securities repurchased in June and July of 2011. In 2014, we paid cash of $5.6 million related to the deferred income tax liabilities associated with the 2004 Convertible Debt Securities repurchased in 2009 and 2010. The remaining balance owed of approximately $23 million will be paid ratably over the next four years. | ||||||||||||
Accounting for Uncertainty in Income Taxes. We are required to estimate our income tax liability in each jurisdiction in which we operate, including U.S. Federal, state and foreign income tax jurisdictions. Various judgments and estimates are required in evaluating our tax positions and determining our provisions for income taxes. During the ordinary course of business, there are certain transactions and calculations for which the ultimate income tax determination may be uncertain. In addition, we may be subject to examination of our income tax returns by various tax authorities, which could result in adverse outcomes. For these reasons, we establish a liability associated with unrecognized tax benefits based on estimates of whether additional taxes and interest may be due. This liability is adjusted based upon changing facts and circumstances, such as the closing of a tax audit, the expiration of a statute of limitations or the refinement of an estimate. | ||||||||||||
A reconciliation of the beginning and ending balances of our liability for unrecognized tax benefits is as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of year | $ | 9,517 | $ | 4,029 | $ | 4,114 | ||||||
Additions based on tax positions related to current year | 760 | 1,292 | 276 | |||||||||
Additions for tax positions of prior years | 30 | 4,597 | 933 | |||||||||
Reductions for tax positions of prior years | (677 | ) | (401 | ) | (764 | ) | ||||||
Lapse of statute of limitations | - | - | (530 | ) | ||||||||
Balance, end of year | $ | 9,630 | $ | 9,517 | $ | 4,029 | ||||||
We recognize interest and penalty expense associated with our liability for unrecognized tax benefits as a component of income tax expense in our Income Statements. In addition to the $9.6 million, $9.5 million, and $4.0 million of liability for unrecognized tax benefits as of December 31, 2014, 2013, and 2012, we had $0.5 million, $0.3 million, and $0.2 million, respectively, of income tax-related accrued interest. If recognized, the $9.6 million of unrecognized tax benefits as of December 31, 2014, would favorably impact our effective tax rate in future periods. | ||||||||||||
We file income tax returns in the U.S. Federal jurisdiction, various U.S. state and local jurisdictions, and many foreign jurisdictions. The U.S., U.K., and Australia are the main taxing jurisdictions in which we operate. The years open for audit vary depending on the taxing jurisdiction. As of December 31, 2014, the U.S. Internal Revenue Service had commenced an audit of our 2010 through 2012 tax years. In addition, the U.S. Federal statute of limitations has expired for periods prior to 2010, and the statute of limitations has expired in our major state jurisdictions of Nebraska, Colorado and Florida for years prior to 2002, 2010, and 2011, respectively. In 2012, we completed our audit in the U.K. for the accounting periods beginning October 1, 2005 and ended September 30, 2010. We have been audited in Australia for years prior to 2007. In addition, the statute of limitations has expired in Australia for years prior to 2010. |
Employee_Retirement_Benefit_Pl
Employee Retirement Benefit Plans | 12 Months Ended | |
Dec. 31, 2014 | ||
Compensation And Retirement Disclosure [Abstract] | ||
Employee Retirement Benefit Plans | 8 | Employee Retirement Benefit Plans |
Defined Contribution-Type Plans. We sponsor defined contribution plans covering substantially all our U.S.-based employees. Participants may contribute up to 100% of their annual wages, subject to certain limitations, as pretax, salary deferral contributions. We make certain matching, and at our discretion, service-based contributions to the plan. The expense related to matching and service-related contributions for 2014, 2013, and 2012 was $9.0 million, $9.7 million, and $9.0 million, respectively. We also have defined contribution-type plans for certain of our non-U.S.-based employees. The total contributions made to these plans in 2014, 2013, and 2012 were $5.0 million, $4.8 million, and $4.6 million, respectively. |
Commitments_Guarantees_and_Con
Commitments, Guarantees and Contingencies | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments And Contingencies Disclosure [Abstract] | ||
Commitments, Guarantees and Contingencies | ||
9 | Commitments, Guarantees and Contingencies | |
Operating Leases. We lease certain office and production facilities under noncancellable operating leases, with the longest lease that runs through June 2025. The leases generally are renewable and provide for the payment of real estate taxes and certain other occupancy expenses. Future aggregate minimum lease payments under these facilities are as follows: 2015 - $13.9 million; 2016 - $12.8 million; 2017 - $12.1 million; 2018 - $11.4 million; 2019 - $9.7 million; and thereafter - $34.2 million. Total rent expense for 2014, 2013, and 2012 was $19.9 million, $20.0 million, and $18.3 million, respectively. | ||
Service Agreements. We have an agreement with Infocrossing LLC (“Infocrossing”), a Wipro Limited company, to provide us outsourced data center services. The term of the Infocrossing agreement runs through June 30, 2017. We outsource the data processing and related computer services required for the operation of our outsourced ACP processing services. Our ACP proprietary software and other software applications are run in an outsourced data center environment in order to obtain the necessary computer processing capacity and other computer support services without us having to make the substantial capital and infrastructure investments that would be necessary for us to provide these services internally. Our clients are connected to the outsourced data center environment through a combination of private and commercially-provided networks. Our ACP processing services are generally considered to be mission critical customer management systems by our clients. As a result, we are highly dependent upon Infocrossing for system availability, security, and response time. | ||
Warranties. We generally warrant that our solutions and related offerings will conform to published specifications, or to specifications provided in an individual client arrangement, as applicable. The typical warranty period is 90 days from delivery of the solution or offering. For certain service offerings we provide a limited warranty for the duration of the services provided. We generally warrant that services will be performed in a professional and workmanlike manner. The typical remedy for breach of warranty is to correct or replace any defective deliverable, and if not possible or practical, we will accept the return of the defective deliverable and refund the amount paid under the client arrangement that is allocable to the defective deliverable. Our contracts also generally contain limitation of damages provisions in an effort to reduce our exposure to monetary damages arising from breach of warranty claims. Historically, we have incurred minimal warranty costs, and as a result, do not maintain a warranty reserve. | ||
Product and Services Indemnifications. Our arrangements with our clients generally include an indemnification provision that will indemnify and defend a client in actions brought against the client that claim our products and/or services infringe upon a copyright, trade secret, or valid patent. Historically, we have not incurred any significant costs related to such indemnification claims, and as a result, do not maintain a reserve for such exposure. | ||
Claims for Company Non-performance. Our arrangements with our clients typically cap our liability for breach to a specified amount of the direct damages incurred by the client resulting from the breach. From time-to-time, these arrangements may also include provisions for possible liquidated damages or other financial remedies for our non-performance, or in the case of certain of our outsourced customer care and billing solutions, provisions for damages related to service level performance requirements. The service level performance requirements typically relate to system availability and timeliness of service delivery. As of December 31, 2014, we believe we have adequate reserves, based on our historical experience, to cover any reasonably anticipated exposure as a result of our nonperformance for any past or current arrangements with our clients. | ||
Indemnifications Related to Officers and the Board of Directors. We have agreed to indemnify members of our Board of Directors (the “Board”) and certain of our officers if they are named or threatened to be named as a party to any proceeding by reason of the fact that they acted in such capacity. We maintain directors’ and officers’ (“D&O”) insurance coverage to protect against such losses. We have not historically incurred any losses related to these types of indemnifications, and are not aware of any pending or threatened actions or claims against any officer or member of our Board. As a result, we have not recorded any liabilities related to such indemnifications as of December 31, 2014. In addition, as a result of the insurance policy coverage, we believe these indemnification agreements are not significant to our results of operations. | ||
Favorable Settlement of Claims. In March 2014, we executed a settlement agreement ending litigation we asserted against a third party for patent infringement and misappropriation of trade secrets. In exchange for the release from the lawsuit initiated, we will receive a total of $6 million, with a portion paid in 2014 and the remainder over the next three years. We have recorded a total $3.9 million (net of a time value discount and legal costs incurred) as a reduction of selling, general and administrative (“SG&A”) expenses in 2014. | ||
Legal Proceedings. From time-to-time, we are involved in litigation relating to claims arising out of our operations in the normal course of business. | ||
In April 2014, the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”) issued a Cautionary Letter (the “Letter”) to the Company, instead of pursuing a civil monetary penalty, after completing its review of the following prior period matters: | ||
• | An administrative subpoena from OFAC requesting document and information related to the possibility of direct or indirect transactions with or to Iranian entities. | |
• | Our voluntary disclosure to OFAC relating to certain business dealing in Syria. | |
• | Our voluntary disclosure to OFAC relating to certain business dealings in Iran and another sanctioned/embargoed country. | |
The Letter represents OFAC’s final enforcement response to the Company’s apparent violations, but does not constitute a final agency determination as to whether violations have occurred. The Letter does not preclude OFAC from taking future enforcement action should new or additional information warrant renewed attention. We are not presently a party to any material pending or threatened legal proceedings. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Stockholders Equity Note [Abstract] | ||||||||||||||||||||||||
Stockholders' Equity | 10 | Stockholders’ Equity | ||||||||||||||||||||||
Stock Repurchase Program. We currently have a stock repurchase program, approved by our Board, authorizing us to repurchase shares of our common stock from time-to-time as market and business conditions warrant (the “Stock Repurchase Program”). | ||||||||||||||||||||||||
As of December 31, 2014, a summary of the shares repurchased under the Stock Repurchase Program is as follows (in thousands, except per share amounts): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 1999-2010 | Total | |||||||||||||||||||
Shares repurchased | 733 | 500 | 823 | 750 | 30,797 | 33,603 | ||||||||||||||||||
Total cost | $ | 19,106 | $ | 10,129 | $ | 13,349 | $ | 9,930 | $ | 733,562 | $ | 786,076 | ||||||||||||
Weighted-average price per share | $ | 26.05 | $ | 20.23 | $ | 16.23 | $ | 13.24 | $ | 23.82 | $ | 23.39 | ||||||||||||
As of December 31, 2014, the total remaining number of shares available for repurchase under the Stock Repurchase Program totaled approximately 1.4 million shares. In February 2015, our Board approved a 7.5 million share increase in the number of shares authorized for repurchase under the Stock Repurchase Program, bringing the total number of shares authorized to 42.5 million and the total remaining shares available for repurchase to approximately 9 million. | ||||||||||||||||||||||||
In addition to the above mentioned stock repurchases, during 2014, 2013, and 2012, we repurchased and then cancelled approximately 252,000 shares, 264,000 shares, and 197,000 shares for $6.9 million, $5.4 million, and $3.2 million, respectively, of common stock from our employees in connection with minimum tax withholding requirements resulting from the vesting of restricted stock under our stock incentive plans. | ||||||||||||||||||||||||
Cash Dividend. In June 2013, our Board approved the initiation of a quarterly cash dividend to be paid to our stockholders. During 2014 and 2013, the Board approved total cash dividends of $0.6225 per share and $0.45 per share of common stock, totaling $21.3 million and $15.2 million, respectively. | ||||||||||||||||||||||||
In January 2015, our Board approved an increase in our quarterly cash dividend from $0.1575 per share of common stock to $0.175 per share of common stock, effective with the first quarterly dividend in 2015. | ||||||||||||||||||||||||
Warrants. On July 25, 2014, we entered into an amendment to our current agreement with Comcast (the “Amended Agreement”). The Amended Agreement provides the framework for Comcast to consolidate its residential customer accounts onto our ACP customer care and billing solution. As an additional incentive for Comcast to migrate new customer accounts to ACP, the Amended Agreement includes the issuance of stock warrants (the “Warrant Agreement”) for the right to purchase up to approximately 2.9 million shares of our common stock (the “Stock Warrants”), 1.9 million warrants relate to Comcast’s existing residential business and the remaining 1.0 million warrants relate to additional residential customer accounts that Comcast may acquire and migrate onto ACP in the future. The Stock Warrants have a 10-year term and an exercise price of $26.68 per warrant. | ||||||||||||||||||||||||
The 1.9 million of the Stock Warrants relate to Comcast’s existing residential business and vest(ed) as follows: | ||||||||||||||||||||||||
• | The first 25% of these Stock Warrants (approximately 0.5 million) vested upon the successful migration of the first 0.5 million customer accounts, which occurred during the fourth quarter of 2014 upon the successful migration of two million new Comcast customer accounts. | |||||||||||||||||||||||
• | The next 25% of these Stock Warrants had a time-based vesting provision, and vested in January 2015. | |||||||||||||||||||||||
• | The next 25% of these Stock Warrants vest only after a cumulative total of 5.5 million customer accounts are migrated onto ACP. | |||||||||||||||||||||||
• | The last 25% of these Stock Warrants vest proportionately based on the number of customer accounts migrated above 5.5 million accounts, with full vesting based on a target of 5.7 million customer accounts above the 5.5 million account level (i.e., a total target of 11.2 million customer account migrations). | |||||||||||||||||||||||
The remaining 1.0 million Stock Warrants that relate to additional residential accounts that Comcast may acquire and migrate onto ACP in the future only vest proportionately with acquired customer accounts migrated onto ACP from other providers’ billing platforms, with full vesting based on a target of 5 million newly migrated customer accounts. | ||||||||||||||||||||||||
Fifty percent of the unvested Stock Warrants become fully vested upon a fundamental change (including a change in control) of the Company, as defined, proportionally reducing the number of Stock Warrants eligible for vesting based on future performance conditions. | ||||||||||||||||||||||||
Once vested, Comcast may exercise the Stock Warrants and elect either physical delivery of common shares or net share settlement (cashless exercise). Alternatively, the exercise of the Stock Warrants may be settled with cash based solely on our approval, or if Comcast were to beneficially own or control in excess of 19.99% of the common stock or voting of the Company. | ||||||||||||||||||||||||
The fair value of the 0.5 million Stock Warrants that vested in the fourth quarter of 2014 was $3.6 million, as determined using the Black-Scholes option-pricing model. Upon vesting, this amount was recorded as a client incentive asset with the corresponding offset to stockholders’ equity. | ||||||||||||||||||||||||
The fair value of the 0.5 million Stock Warrants that vest in January 2015 was $3.7 million at the grant date, as determined using the Black-Scholes option-pricing model. This amount is being recorded ratably over the vesting period as a client incentive asset with the corresponding offset to stockholders’ equity. | ||||||||||||||||||||||||
The client incentive asset related to the Stock Warrants is being amortized as a reduction in processing and related services revenues over the remaining term of the Comcast amended agreement. As of December 31, 2014, we recorded a client incentive asset related to these Stock Warrants of $6.7 million and have amortized $0.4 million as a reduction in processing and related services revenues. | ||||||||||||||||||||||||
The remaining unvested Stock Warrants will be accounted for as client incentive assets in the period the performance conditions necessary for vesting have been met. As of December 31, 2014, none of the Stock Warrants had been exercised. | ||||||||||||||||||||||||
Convertible Debt Securities. Under GAAP, convertible debt securities that may be settled in cash upon conversion (including partial cash settlement) must be separated into their liability and equity components at initial recognition by: (i) recording the liability component at the fair value of a similar liability that does not have an associated equity component; and (ii) attributing the remaining proceeds from the issuance to the equity component. The carrying amount of the equity component related to our convertible debt securities outstanding, included within additional paid-in capital, net of tax, as of December 31, 2014 and 2013 was $22.9 million. |
Equity_Compensation_Plans
Equity Compensation Plans | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Equity Compensation Plans | 11 | Equity Compensation Plans | ||||||
Stock Incentive Plans | ||||||||
Stock Incentive Plan. In 2014, our stockholders approved an increase of 2.9 million shares authorized for issuance under the 2005 Stock Incentive Plan (the “2005 Plan”), from 15.8 million shares to 18.7 million shares. Shares reserved under the 2005 Plan can be granted to officers and other key employees of our company and its subsidiaries and to non-employee directors of our company in the form of stock options, stock appreciation rights, performance unit awards, restricted stock awards, or stock bonus awards. Shares granted under the 2005 Plan in the form of a performance unit award, restricted stock award or stock bonus award are counted toward the aggregate number of shares of common stock available for issuance under the 2005 Plan as two shares for every one share granted or issued in payment of such award. As of December 31, 2014, 4.8 million shares were available for issuance. | ||||||||
Restricted Stock. We generally issue new shares (versus treasury shares) to fulfill restricted stock award grants. Restricted stock awards are granted at no cost to the recipient. Historically, our restricted stock awards have vested annually primarily over three or four years with no restrictions other than the passage of time (i.e., the shares are released upon calendar vesting with no further restrictions) (“Time-Based Awards”). Unvested Time-Based Awards are typically forfeited and cancelled upon termination of employment with our company. Certain Time-Based Awards become fully vested (vesting accelerates) upon a change in control, as defined, and the subsequent involuntary termination of employment. The fair value of the Time-Based Awards (determined by using the closing market price of our common stock on the grant date) is charged to expense on a straight-line basis over the requisite service period for the entire award. | ||||||||
We also issue restricted stock shares to key members of management that vest in equal installments over three years upon meeting either pre-established financial performance objectives or pre-established stock price objectives (“Performance-Based Awards”). The structure of the performance goals for the Performance-Based Awards has been approved by our stockholders. The Performance-Based Awards become fully vested (vesting accelerates) upon a change in control, as defined, and the subsequent involuntary termination of employment. The fair value of the Performance-Based Awards (determined by using the closing market price of our common stock on the grant date) is charged to expense on a straight-line basis over the requisite service period, taking into consideration the probability of vesting, for each separately vesting portion of the award as if the award is, in-substance, multiple awards. | ||||||||
A summary of our unvested restricted stock activity during 2014 is as follows (shares in thousands): | ||||||||
2014 | ||||||||
Shares | Weighted- | |||||||
Average Grant | ||||||||
Date Fair Value | ||||||||
Unvested awards, January 1, 2014 | 1,922 | $ | 18.57 | |||||
Awards granted | 1,295 | 26.45 | ||||||
Awards forfeited/cancelled | (151 | ) | 20.19 | |||||
Awards vested | (755 | ) | 18.79 | |||||
Unvested awards, December 31, 2014 | 2,311 | $ | 22.81 | |||||
The weighted-average grant date fair value per share of restricted stock shares granted during 2014, 2013, and 2012 was $26.45, $19.75, and $16.58, respectively. The total market value of restricted stock shares vesting during 2014, 2013, and 2012 was $20.7 million, $16.2 million, and $10.6 million, respectively. | ||||||||
1996 Employee Stock Purchase Plan | ||||||||
As of December 31, 2014, we have an employee stock purchase plan whereby 1.7 million shares of our common stock have been reserved for sale to our U.S. employees through payroll deductions. The price for shares purchased under the plan is 85% of market value on the last day of the purchase period. Purchases are made at the end of each month. During 2014, 2013, and 2012, 61,592 shares, 68,845 shares, and 93,352 shares, respectively, were purchased under the plan for $1.4 million ($21.31 to $25.47 per share), $1.4 million ($16.01 to $24.99 per share), and $1.4 million ($12.24 to $19.12 per share), respectively. As of December 31, 2014, 499,549 shares remain eligible for purchase under the plan. | ||||||||
Stock-Based Compensation Expense | ||||||||
We recorded stock-based compensation expense of $16.7 million, $14.8 million, and $13.4 million, respectively, for 2014, 2013, and 2012. As of December 31, 2014 there was $37.9 million of total compensation cost related to unvested awards not yet recognized. That cost, excluding the impact of forfeitures, is expected to be recognized over a weighted-average period of 2.5 years. | ||||||||
We recorded a deferred income tax benefit related to stock-based compensation expense during 2014, 2013, and 2012, of $5.0 million, $4.6 million, and $4.6 million, respectively. The actual income tax benefit realized for the tax deductions from stock option exercises and vesting of restricted stock for 2014, 2013, and 2012, totaled $6.5 million, $5.4 million, and $4.0 million, respectively. |
Unaudited_Quarterly_Financial_
Unaudited Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Unaudited Quarterly Financial Data | 12 | Unaudited Quarterly Financial Data | |||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
2014:00:00 | |||||||||||||||||
Total revenues | $ | 188,028 | $ | 184,558 | $ | 185,003 | $ | 193,697 | |||||||||
Total cost of revenues (exclusive of depreciation) | 102,104 | 93,682 | 94,470 | 99,087 | |||||||||||||
Operating income (1) | 20,914 | 21,820 | 13,831 | 19,125 | |||||||||||||
Income before income taxes (1) | 17,002 | 17,741 | 10,064 | 16,715 | |||||||||||||
Income tax provision (2) | (7,311 | ) | (8,338 | ) | (4,831 | ) | (4,083 | ) | |||||||||
Net income (1)(2) | 9,691 | 9,403 | 5,233 | 12,632 | |||||||||||||
Basic earnings per common share (1)(2) | $ | 0.3 | $ | 0.29 | $ | 0.16 | $ | 0.39 | |||||||||
Diluted earnings per common share (1)(2) | 0.28 | 0.28 | 0.15 | 0.38 | |||||||||||||
2013:00:00 | |||||||||||||||||
Total revenues | $ | 180,632 | $ | 186,107 | $ | 186,180 | $ | 194,549 | |||||||||
Total cost of revenues (exclusive of depreciation) | 93,354 | 94,758 | 94,898 | 94,155 | |||||||||||||
Operating income (3) | 18,035 | 21,681 | 20,553 | 16,435 | |||||||||||||
Income before income taxes (3) | 13,544 | 18,862 | 16,631 | 12,482 | |||||||||||||
Income tax benefit (provision) (2) | 1,354 | (6,790 | ) | (1,331 | ) | -3,401 | |||||||||||
Net income (2)(3) | 14,898 | 12,072 | 15,300 | 9,081 | |||||||||||||
Basic earnings per common share (2)(3) | $ | 0.46 | $ | 0.38 | $ | 0.48 | $ | 0.28 | |||||||||
Diluted earnings per common share (2)(3) | 0.46 | 0.37 | 0.47 | 0.27 | |||||||||||||
-1 | During the first, third, and fourth quarters of 2014 we incurred restructuring expenses of $1.2 million, $7.8 million, and $4.9 million, respectively, or $0.02, $0.12, and $0.11 per diluted share (see Note 6). | ||||||||||||||||
-2 | Fluctuations in our effective income tax rate between quarters generally relates to the accounting for discrete income tax items in any given quarter, and revisions of estimates for certain income tax components during the year. | ||||||||||||||||
•For 2014: Our effective income tax rates for the first, second, third, and fourth quarters were 43%, 47%, 48%, and 24%, respectively. The low fourth quarter rate can be mainly attributed to full year impact of the 2014 R&D tax credits, as the legislation was not passed until December 2014. | |||||||||||||||||
•For 2013: Our effective income tax rates for the first, second, third, and fourth quarters of 2013 were (10)%, 36%, 8%, and 27%, respectively. The negative rate in the first quarter of 2013 reflects the benefit of approximately $6 million of R&D tax credits that we generated in 2012, but were unable to include in the determination of our 2012 effective tax rate as the legislation was not signed into law until 2013. The lower income tax rates for the third and fourth quarter were mainly driven by incremental R&D income tax credits claimed for development activities from previous years and by the reduction of certain tax allowances related mainly to foreign operations, offset by increases in tax reserves for uncertainties, which provided a benefit of approximately $6 million and $2 million, respectively. | |||||||||||||||||
-3 | During the first and fourth quarters of 2013 we incurred restructuring expenses of $0.9 and $11.5 million, respectively, or $0.03 and $0.25 per diluted share (see Note 6). | ||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation. Our Financial Statements include all of our accounts and our subsidiaries’ accounts. All material intercompany accounts and transactions have been eliminated. | |||||||||||||||||||||||
Translation of Foreign Currency | Translation of Foreign Currency. Our foreign subsidiaries use the local currency of the countries in which they operate as their functional currency. Their assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenues, expenses, and cash flows are translated at the average rates of exchange prevailing during the period. Foreign currency translation adjustments are included in comprehensive income in stockholders’ equity. Foreign currency transaction gains and losses are included in the determination of net income. | |||||||||||||||||||||||
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Our Financial Statements. The preparation of our Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The more critical estimates and related assumptions that affect our financial position and results of operations are in the areas of: (i) revenue recognition; (ii) allowance for doubtful accounts receivable; (iii) impairment assessments of goodwill and other long-lived assets; (iv) income taxes; (v) business combinations and asset purchases; and (vi) loss contingencies. | |||||||||||||||||||||||
Revenue Recognition | Revenue Recognition. We use various judgments and estimates in connection with the determination of the amount of revenues to be recognized in each accounting period. Our primary revenue recognition criteria include: (i) persuasive evidence of an arrangement; (ii) delivery; (iii) fixed or determinable fees; and (iv) collectibility of fees. | |||||||||||||||||||||||
Deferred Revenue and Unbilled Accounts Receivable | Deferred Revenue and Unbilled Accounts Receivable. Client payments and billed amounts due from clients in excess of revenue recognized are recorded as deferred revenue. Deferred revenue amounts expected to be recognized within the next twelve months are classified as current liabilities. Revenue recognized prior to the scheduled billing date is recorded as unbilled accounts receivable. | |||||||||||||||||||||||
Postage | Postage. We pass through to our clients the cost of postage that is incurred on behalf of those clients, and typically require an advance payment on expected postage costs. These advance payments are included in client deposits in the accompanying Consolidated Balance Sheets (“Balance Sheets” or “Balance Sheet”) and are classified as current liabilities regardless of the contract period. We net the cost of postage against the postage reimbursements for those clients where we require advance deposits, and include the net amount (which is not material) in processing and related services revenues. | |||||||||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. As of December 31, 2014 and 2013, our cash equivalents consist primarily of institutional money market funds, commercial paper, and time deposits held at major banks. | |||||||||||||||||||||||
As of December 31, 2014 and 2013, we had $4.7 million and $4.5 million, respectively, of restricted cash that serves to collateralize outstanding letters of credit. This restricted cash is included in cash and cash equivalents in our Balance Sheet. | ||||||||||||||||||||||||
Short-term Investments and Other Financial Instruments | Short-term Investments and Other Financial Instruments. Our financial instruments as of December 31, 2014 and 2013 include cash and cash equivalents, short-term investments, accounts receivable, accounts payable, an interest rate swap contract, and debt. Because of their short maturities, the carrying amounts of cash equivalents, accounts receivable, and accounts payable approximate their fair value. | |||||||||||||||||||||||
Our short-term investments and certain of our cash equivalents are considered “available-for-sale” and are reported at fair value in our Balance Sheets, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Realized and unrealized gains and losses were not material in any period presented. | ||||||||||||||||||||||||
Primarily all short-term investments held by us as of December 31, 2014 and 2013 have contractual maturities of less than two years from the time of acquisition. Our short-term investments at December 31, 2014 and 2013 consisted almost entirely of fixed income securities. Proceeds from the sale/maturity of short-term investments in 2014, 2013, and 2012 were $197.5 million, $89.7 million, and $42.1 million, respectively. | ||||||||||||||||||||||||
The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets and liabilities measured at fair value (in thousands): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||
Money market funds | $ | 9,785 | $ | — | $ | 9,785 | $ | 13,761 | $ | — | $ | 13,761 | ||||||||||||
Commercial paper | — | 12,248 | 12,248 | — | 19,629 | 19,629 | ||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||
Corporate debt securities | — | 88,494 | 88,494 | — | 76,786 | 76,786 | ||||||||||||||||||
Municipal bonds | — | 9,945 | 9,945 | — | 29,106 | 29,106 | ||||||||||||||||||
U.S. government agency bonds | — | 11,313 | 11,313 | — | 18,050 | 18,050 | ||||||||||||||||||
Asset-backed securities | — | 10,336 | 10,336 | — | 4,209 | 4,209 | ||||||||||||||||||
Total | $ | 9,785 | $ | 132,336 | $ | 142,121 | $ | 13,761 | $ | 147,780 | $ | 161,541 | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Interest rate swap contracts (1) | $ | — | $ | — | $ | — | $ | — | $ | 154 | $ | 154 | ||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 154 | $ | 154 | ||||||||||||
· | As of December 31, 2013, the fair value of the interest rate swap contract was classified on our Balance Sheet in other current liabilities. | |||||||||||||||||||||||
Valuation inputs used to measure the fair values of our money market funds were derived from quoted market prices. The fair values of all other financial instruments are based upon pricing provided by third-party pricing services. These prices were derived from observable market inputs. | ||||||||||||||||||||||||
We have chosen not to measure our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value and estimated fair value of our debt as of the indicated periods (in thousands): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||
Credit Agreement (carrying value including current maturities) | $ | 120,000 | $ | 120,000 | $ | 135,000 | $ | 135,000 | ||||||||||||||||
Convertible debt (par value) | 150,000 | 178,920 | 150,000 | 199,800 | ||||||||||||||||||||
The fair value for our Credit Agreement was estimated using a discounted cash flow methodology, while the fair value for our convertible debt was estimated based upon quoted market prices or recent sales activity, both of which are considered Level 2 inputs. | ||||||||||||||||||||||||
Concentrations of Credit Risk | Concentrations of Credit Risk. In the normal course of business, we are exposed to credit risk. The principal concentrations of credit risk relate to cash deposits, cash equivalents, short-term investments, and accounts receivable. We regularly monitor credit risk exposures and take steps to mitigate the likelihood of these exposures resulting in a loss. We hold our cash deposits, cash equivalents, and short-term investments with financial institutions we believe to be of sound financial condition. | |||||||||||||||||||||||
We generally do not require collateral or other security to support accounts receivable. We evaluate the credit worthiness of our clients in conjunction with our revenue recognition processes, as well as through our ongoing collectibility assessment processes for accounts receivable. We maintain an allowance for doubtful accounts receivable based upon factors surrounding the credit risk of specific clients, historical trends, and other information. We use various judgments and estimates in determining the adequacy of the allowance for doubtful accounts receivable. See Note 3 for additional details of our concentration of accounts receivable. | ||||||||||||||||||||||||
The activity in our allowance for doubtful accounts receivable is as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance, beginning of year | $ | 2,359 | $ | 3,147 | $ | 2,421 | ||||||||||||||||||
Additions (reductions) to expense | 1,406 | (354 | ) | 1,039 | ||||||||||||||||||||
Write-offs | (465 | ) | (280 | ) | (174 | ) | ||||||||||||||||||
Other | 23 | (154 | ) | (139 | ) | |||||||||||||||||||
Balance, end of year | $ | 3,323 | $ | 2,359 | $ | 3,147 | ||||||||||||||||||
Property and Equipment | Property and Equipment. Property and equipment are recorded at cost (or at estimated fair value if acquired in a business combination) and are depreciated over their estimated useful lives ranging from three to ten years. Leasehold improvements are depreciated over the shorter of their economic life or the lease term. Depreciation expense is computed using the straight-line method for financial reporting purposes. Depreciation expense for all property and equipment is reflected in our accompanying Consolidated Statements of Income (“Income Statements”) separately in the aggregate and is not included in the cost of revenues or the other components of operating expenses. Depreciation for income tax purposes is computed using accelerated methods. | |||||||||||||||||||||||
Software | Software. We expend substantial amounts on R&D, particularly for new products and services, or for enhancements of existing products and services. For development of software products that are to be licensed by us, we expense all costs related to the development of the software until technological feasibility is established. For development of software to be used internally (e.g., processing systems software), we expense all costs prior to the application development stage. | |||||||||||||||||||||||
During 2014, 2013, and 2012, we expended $104.7 million, $110.0 million, and $112.9 million, respectively, on R&D projects. We did not capitalize any R&D costs in 2014, 2013, or 2012, as the costs subject to capitalization during these periods were not material. We did not have any capitalized R&D costs included in our December 31, 2014 or 2013 Balance Sheets. | ||||||||||||||||||||||||
Realizability of Long-Lived Assets | Realizability of Long-Lived Assets. We evaluate our long-lived assets, other than goodwill, for possible impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. A long-lived asset is impaired if estimated future undiscounted cash flows associated with that asset are insufficient to recover the carrying amount of the long-lived asset. If deemed impaired, the long-lived asset is written down to its fair value. | |||||||||||||||||||||||
Goodwill | Goodwill. We evaluate our goodwill for impairment on an annual basis. In addition, we evaluate our goodwill on a more periodic basis (e.g., quarterly) if events occur or circumstances change that could indicate a potential impairment may have occurred. Goodwill is considered impaired if the carrying value of the reporting unit which includes the goodwill is greater than the estimated fair value of the reporting unit. | |||||||||||||||||||||||
Contingencies | Contingencies. We accrue for a loss contingency when: (i) it is probable that an asset has been impaired, or a liability has been incurred; and (ii) the amount of the loss can be reasonably estimated. The determination of accounting for loss contingencies is subject to various judgments and estimates. We do not record the benefit from a gain contingency until the benefit is realized. | |||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share (“EPS”). Basic and diluted EPS amounts are presented on the face of our Income Statements. | |||||||||||||||||||||||
Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of EPS pursuant to the two-class method. Unvested restricted stock awards under our stock incentive plans, granted prior to August 2008, contain nonforfeitable rights to cash dividends. As a result, basic EPS is computed by dividing net income available to common stockholders and participating securities (the numerators) by the respective weighted-average number of shares outstanding during the period (the denominators) using the two-class method. Under the two-class method, undistributed earnings are allocated among each class of common stock and participating security prior to the calculation of EPS. Diluted EPS is calculated similarly, except that the calculation includes the effect of potentially dilutive stock options and non-participating restricted stock awards. | ||||||||||||||||||||||||
The amounts attributed to both common stock and participating restricted stock used as the numerators in both the basic and diluted EPS calculations are as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Net income attributed to: | ||||||||||||||||||||||||
Common stock | $ | 36,959 | $ | 51,351 | $ | 48,853 | ||||||||||||||||||
Participating common restricted stock | — | — | 26 | |||||||||||||||||||||
Total | $ | 36,959 | $ | 51,351 | $ | 48,879 | ||||||||||||||||||
The weighted-average shares outstanding used in the basic and diluted EPS denominators related to common stock and participating restricted stock are as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Weighted-average shares outstanding – Basic: | ||||||||||||||||||||||||
Common stock | 32,449 | 32,117 | 32,142 | |||||||||||||||||||||
Participating common restricted stock | — | — | 17 | |||||||||||||||||||||
Total | 32,449 | 32,117 | 32,159 | |||||||||||||||||||||
Weighted-average shares outstanding – Diluted: | ||||||||||||||||||||||||
Common stock | 33,736 | 32,873 | 32,459 | |||||||||||||||||||||
Participating common restricted stock | — | — | 17 | |||||||||||||||||||||
Total | 33,736 | 32,873 | 32,476 | |||||||||||||||||||||
The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Basic weighted-average common shares | 32,449 | 32,117 | 32,142 | |||||||||||||||||||||
Dilutive effect of common stock options | — | 1 | 11 | |||||||||||||||||||||
Dilutive effect of non-participating restricted common stock | 569 | 550 | 306 | |||||||||||||||||||||
Dilutive effect of 2010 Convertible Notes | 717 | 205 | — | |||||||||||||||||||||
Dilutive effect of Stock Warrants | 1 | — | — | |||||||||||||||||||||
Diluted weighted-average common shares | 33,736 | 32,873 | 32,459 | |||||||||||||||||||||
The 2010 Convertible Notes have a dilutive effect in those quarterly periods in which our average stock price exceeds the current effective conversion price (see Note 5). | ||||||||||||||||||||||||
The Stock Warrants have a dilutive effect in those quarterly periods in which our average stock price exceeds the exercise price of $26.68 per warrant (under the treasury stock method), and are not subject to performance vesting conditions (see Note 10). | ||||||||||||||||||||||||
Potentially dilutive common shares related to stock options, non-participating unvested restricted stock, and Stock Warrants excluded from the computation of diluted EPS, as the effect was antidilutive, were not material in any period presented. | ||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation. Stock-based compensation represents the cost related to stock-based awards granted to employees and non-employee directors. We measure stock-based compensation cost at the grant date of the award, based on the estimated fair value of the award and recognize the cost (net of estimated forfeitures) over the requisite service period. Benefits of tax deductions in excess of recognized compensation expense, if any, are reported as a financing cash inflow rather than as an operating cash inflow. | |||||||||||||||||||||||
Income Taxes | Income Taxes. We account for income taxes using the asset and liability method. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | |||||||||||||||||||||||
Accounting Pronouncement Issued but Not yet Effective | Accounting Pronouncement Issued But Not Yet Effective. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is a single comprehensive model which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. Under the new guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The updated accounting guidance is effective for annual and interim reporting periods in fiscal years beginning after December 15, 2016. Early adoption is not permitted. An entity may choose to adopt this ASU either retrospectively or through a cumulative effect adjustment as of the start of the first period for which it applies the standard. We are currently in the process of evaluating the impact that this new guidance will have on our consolidated financial statements and our method of adoption. | |||||||||||||||||||||||
Processing and Related Services Revenue | ||||||||||||||||||||||||
Revenue Recognition | Processing and Related Services. | |||||||||||||||||||||||
Our processing and related services revenue relates to: (i) the outsourced, customer care and billing processing and related services provided to our North American cable and satellite clients; and (ii) the managed services provided to clients which utilize our software. | ||||||||||||||||||||||||
We contract for our processing and related services using long-term agreements whose terms have typically ranged from three to ten years. The long-term processing agreements include multiple services delivered each month, to include such things as: (i) billing and data processing services; (ii) credit management and collection services; and (iii) customer statement invoice printing and mailing services. The fees for these deliverables typically are billed to our clients monthly based upon actual monthly volumes and/or usage of services (e.g., the number of client customers processed on our systems, the number of transactions processed on our systems, and/or the quantity and content of the monthly statements and mailings processed through our systems) or on a fixed monthly fee. We recognize processing and related services revenue on a monthly basis as we provide the services. | ||||||||||||||||||||||||
We contract for our managed services using long-term arrangements whose terms have ranged from three to eight years. Under managed services agreements, we may operate certain of our software products on behalf of our clients: (i) out of a client’s data center; (ii) out of a data center we own and operate; or (iii) out of a third-party data center we contract with for such services. Managed services can also include us providing other services, such as transitional services, fulfillment, remittance processing, operational consulting, back office, and end user billing services. | ||||||||||||||||||||||||
Software Maintenance and Services Revenue | ||||||||||||||||||||||||
Revenue Recognition | Software, Services, and Maintenance. | |||||||||||||||||||||||
Our software and services revenue relates primarily to: (i) software license sales; and (ii) professional services to implement the software. Our maintenance revenue relates primarily to support of our software once it has been implemented. | ||||||||||||||||||||||||
The accounting for software license arrangements, especially when software is sold in a multiple-element arrangement, can be complex and requires considerable judgment. Key factors considered in accounting for software license and related services include the following criteria: (i) the identification of the separate elements of the arrangement; (ii) the determination of whether any undelivered elements are essential to the functionality of the delivered elements; (iii) the assessment of whether the software, if hosted, should be accounted for as a services arrangement and thus outside the scope of the software revenue recognition literature; (iv) the determination of vendor specific objective evidence (“VSOE”) of fair value for the undelivered element(s) of the arrangement; (v) the assessment of whether the software license fees are fixed or determinable; (vi) the determination as to whether the fees are considered collectible; and (vii) the assessment of whether services included in the arrangement represent significant production, customization or modification of the software. The evaluation of these factors, and the ultimate revenue recognition decision, requires significant judgments to be made by us. The judgments made in this area could have a significant effect on revenues recognized in any period by changing the amount and/or the timing of the revenue recognized. In addition, because software licenses typically have little or no direct, incremental costs related to the recognition of the revenue, these judgments could also have a significant effect on our results of operations. | ||||||||||||||||||||||||
The initial sale of software products generally requires significant production, modification or customization and thus falls under the guidelines of contract accounting. In these software license arrangements, the elements of the arrangements are typically a software license, professional services, and maintenance. When we have VSOE of fair value for the maintenance, which we generally do, we allocate a portion of the total arrangement fee to the maintenance element based on its VSOE of fair value, and the balance of the arrangement fee is subject to contract accounting using the percentage-of-completion (“POC”) method of accounting. Under the POC method of accounting, software license and professional services revenues are typically recognized as the professional services related to the software implementation project are performed. We are using hours performed on the project as the measure to determine the percentage of the work completed. | ||||||||||||||||||||||||
In certain instances, we sell software license volume upgrades, which provide our clients the right to use our software to process higher transaction volume levels. In these instances, if: (i) maintenance is the only undelivered element of the software arrangement; (ii) we have VSOE of fair value for the maintenance related to the volume upgrade; and (iii) we meet the other revenue recognition criteria, we recognize the software license revenue on the effective date of the volume upgrade. | ||||||||||||||||||||||||
A portion of our professional services revenues does not include an element of software delivery (e.g., business consulting services, etc.), and thus, do not fall within the scope of specific authoritative accounting literature for software arrangements. In these cases, revenues from fixed-price, professional service contracts are recognized using a method consistent with the proportional performance method, which is relatively consistent with our POC methodology. Under a proportional performance model, revenue is recognized by allocating revenue between reporting periods based on relative service provided in each reporting period, and costs are generally recognized as incurred. We utilize an input-based approach (i.e., hours worked) for purposes of measuring performance on these types of contracts. Our input measure is considered a reasonable surrogate for an output measure. In instances when the work performed on fixed price agreements is of relatively short duration, or if we are unable to make reasonably dependable estimates at the outset of the arrangement, we use the completed contract method of accounting whereby revenue is recognized when the work is completed. | ||||||||||||||||||||||||
Our use of the POC and proportional performance methods of accounting on professional services engagements requires estimates of the total project revenues, total project costs and the expected hours necessary to complete a project. Changes in estimates as a result of additional information or experience on a project as work progresses are inherent characteristics of the POC and proportional performance methods of accounting as we are exposed to various business risks in completing these engagements. The estimation process to support these methods of accounting is more difficult for projects of greater length and/or complexity. The judgments and estimates made in this area could: (i) have a significant effect on revenues recognized in any period by changing the amount and/or the timing of the revenue recognized; and/or (ii) impact the expected profitability of a project, including whether an overall loss on an arrangement has occurred. To mitigate the inherent risks in using the POC and proportional performance methods of accounting, we track our performance on projects and reevaluate the appropriateness of our estimates as part of our monthly accounting cycle. | ||||||||||||||||||||||||
Revenues from professional services contracts billed on a time-and-materials basis are recognized as the services are performed and as amounts due from clients are deemed collectible and contractually non-refundable. | ||||||||||||||||||||||||
Maintenance revenues are recognized ratably over the software maintenance period. Our maintenance consists primarily of client and product support, technical updates (e.g., bug fixes, etc.), and unspecified upgrades or enhancements to our software products.. If specified upgrades or enhancements are offered in an arrangement, which is rare, they are accounted for as a separate element of the software arrangement. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||
Fair Value Measurements | The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets and liabilities measured at fair value (in thousands): | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||
Money market funds | $ | 9,785 | $ | — | $ | 9,785 | $ | 13,761 | $ | — | $ | 13,761 | ||||||||||||
Commercial paper | — | 12,248 | 12,248 | — | 19,629 | 19,629 | ||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||
Corporate debt securities | — | 88,494 | 88,494 | — | 76,786 | 76,786 | ||||||||||||||||||
Municipal bonds | — | 9,945 | 9,945 | — | 29,106 | 29,106 | ||||||||||||||||||
U.S. government agency bonds | — | 11,313 | 11,313 | — | 18,050 | 18,050 | ||||||||||||||||||
Asset-backed securities | — | 10,336 | 10,336 | — | 4,209 | 4,209 | ||||||||||||||||||
Total | $ | 9,785 | $ | 132,336 | $ | 142,121 | $ | 13,761 | $ | 147,780 | $ | 161,541 | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Interest rate swap contracts (1) | $ | — | $ | — | $ | — | $ | — | $ | 154 | $ | 154 | ||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 154 | $ | 154 | ||||||||||||
· | As of December 31, 2013, the fair value of the interest rate swap contract was classified on our Balance Sheet in other current liabilities. | |||||||||||||||||||||||
Carrying Value and Estimated Fair Value of Debt | We have chosen not to measure our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value and estimated fair value of our debt as of the indicated periods (in thousands): | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||
Credit Agreement (carrying value including current maturities) | $ | 120,000 | $ | 120,000 | $ | 135,000 | $ | 135,000 | ||||||||||||||||
Convertible debt (par value) | 150,000 | 178,920 | 150,000 | 199,800 | ||||||||||||||||||||
Allowance for Doubtful Accounts Receivable | The activity in our allowance for doubtful accounts receivable is as follows (in thousands): | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance, beginning of year | $ | 2,359 | $ | 3,147 | $ | 2,421 | ||||||||||||||||||
Additions (reductions) to expense | 1,406 | (354 | ) | 1,039 | ||||||||||||||||||||
Write-offs | (465 | ) | (280 | ) | (174 | ) | ||||||||||||||||||
Other | 23 | (154 | ) | (139 | ) | |||||||||||||||||||
Balance, end of year | $ | 3,323 | $ | 2,359 | $ | 3,147 | ||||||||||||||||||
Net Income Attributed to Common Stock and Participating Restricted Common Stock | The amounts attributed to both common stock and participating restricted stock used as the numerators in both the basic and diluted EPS calculations are as follows (in thousands): | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Net income attributed to: | ||||||||||||||||||||||||
Common stock | $ | 36,959 | $ | 51,351 | $ | 48,853 | ||||||||||||||||||
Participating common restricted stock | — | — | 26 | |||||||||||||||||||||
Total | $ | 36,959 | $ | 51,351 | $ | 48,879 | ||||||||||||||||||
Calculation of the Denominator of the Basic and Diluted Earnings (Loss) per Share (EPS) Computations | The weighted-average shares outstanding used in the basic and diluted EPS denominators related to common stock and participating restricted stock are as follows (in thousands): | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Weighted-average shares outstanding – Basic: | ||||||||||||||||||||||||
Common stock | 32,449 | 32,117 | 32,142 | |||||||||||||||||||||
Participating common restricted stock | — | — | 17 | |||||||||||||||||||||
Total | 32,449 | 32,117 | 32,159 | |||||||||||||||||||||
Weighted-average shares outstanding – Diluted: | ||||||||||||||||||||||||
Common stock | 33,736 | 32,873 | 32,459 | |||||||||||||||||||||
Participating common restricted stock | — | — | 17 | |||||||||||||||||||||
Total | 33,736 | 32,873 | 32,476 | |||||||||||||||||||||
Reconciliation of the Basic and Diluted EPS denominators | The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands): | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Basic weighted-average common shares | 32,449 | 32,117 | 32,142 | |||||||||||||||||||||
Dilutive effect of common stock options | — | 1 | 11 | |||||||||||||||||||||
Dilutive effect of non-participating restricted common stock | 569 | 550 | 306 | |||||||||||||||||||||
Dilutive effect of 2010 Convertible Notes | 717 | 205 | — | |||||||||||||||||||||
Dilutive effect of Stock Warrants | 1 | — | — | |||||||||||||||||||||
Diluted weighted-average common shares | 33,736 | 32,873 | 32,459 | |||||||||||||||||||||
Segment_Reporting_and_Signific1
Segment Reporting and Significant Concentration (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Summary of Financial Information Relating to Operations by Geographic Region | Financial information relating to our operations by geographic region is as follows (in thousands): | |||||||||||
Total Revenues: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Americas (principally the U.S.) | $ | 636,482 | $ | 633,163 | $ | 652,008 | ||||||
Europe, Middle East and Africa (principally Europe) | 79,535 | 80,527 | 73,113 | |||||||||
Asia Pacific | 35,269 | 33,778 | 31,745 | |||||||||
Total revenues | $ | 751,286 | $ | 747,468 | $ | 756,866 | ||||||
Property and Equipment: | As of December 31, | |||||||||||
2014 | 2013 | |||||||||||
Americas (principally the U.S.) | $ | 31,912 | $ | 27,115 | ||||||||
Europe, Middle East and Africa | 3,618 | 4,280 | ||||||||||
Asia Pacific | 2,796 | 3,666 | ||||||||||
Total property and equipment | $ | 38,326 | $ | 35,061 | ||||||||
Summary of Revenues from Significant Clients | Revenues from these clients represented the following percentages of our total revenues for the following years: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Comcast | 22 | % | 19 | % | 20 | % | ||||||
DISH | 15 | % | 15 | % | 14 | % | ||||||
Time Warner | 11 | % | 11 | % | 10 | % | ||||||
Summary of Net Billed Accounts Receivable from Significant Clients | As of December 31, 2014 and 2013, the percentage of net billed accounts receivable balances attributable to these clients were as follows: | |||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Comcast | 21 | % | 21 | % | ||||||||
DISH | 13 | % | 14 | % | ||||||||
Time Warner | 12 | % | 9 | % | ||||||||
LongLived_Assets_Tables
Long-Lived Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Summary of Property and Equipment | Property and Equipment. Property and equipment at December 31 consisted of the following (in thousands, except years): | |||||||||||||||||||||||
Useful | 2014 | 2013 | ||||||||||||||||||||||
Lives (years) | ||||||||||||||||||||||||
Computer equipment | 5-Mar | $ | 96,749 | $ | 89,605 | |||||||||||||||||||
Leasehold improvements | 10-May | 16,566 | 15,793 | |||||||||||||||||||||
Operating equipment | 8-Mar | 55,501 | 48,759 | |||||||||||||||||||||
Furniture and fixtures | 8-Mar | 7,531 | 10,426 | |||||||||||||||||||||
Capital projects in process | — | 44 | — | |||||||||||||||||||||
176,391 | 164,583 | |||||||||||||||||||||||
Less—accumulated depreciation | (138,065 | ) | (129,522 | ) | ||||||||||||||||||||
Property and equipment, net | $ | 38,326 | $ | 35,061 | ||||||||||||||||||||
Rollforward of Goodwill | ||||||||||||||||||||||||
Goodwill. We do not have any intangible assets with indefinite lives other than goodwill. A rollforward of goodwill in 2014 and 2013 is as follows (in thousands): | ||||||||||||||||||||||||
January 1, 2013 balance | $ | 233,365 | ||||||||||||||||||||||
Adjustments for the dispositions of business operations | (1,967 | ) | ||||||||||||||||||||||
Revisions related to prior acquisitions | (164 | ) | ||||||||||||||||||||||
Effects of changes in foreign currency exchange rates | 2,365 | |||||||||||||||||||||||
December 31, 2013 balance | 233,599 | |||||||||||||||||||||||
Revisions related to prior acquisitions | (59 | ) | ||||||||||||||||||||||
Effects of changes in foreign currency exchange rates | (8,271 | ) | ||||||||||||||||||||||
December 31, 2014 balance | $ | 225,269 | ||||||||||||||||||||||
Summary of Carrying Value of Assets | As of December 31, 2014 and 2013, the carrying values of these assets were as follows (in thousands): | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Investments in client contracts (1) | $ | 34,657 | $ | (23,907 | ) | $ | 10,750 | $ | 27,370 | $ | (20,345 | ) | $ | 7,025 | ||||||||||
Capitalized costs (2) | 6,667 | (3,463 | ) | 3,204 | 5,003 | (3,340 | ) | 1,663 | ||||||||||||||||
Acquired client contracts (3) | 94,164 | (61,215 | ) | 32,949 | 98,200 | (51,697 | ) | 46,503 | ||||||||||||||||
Total client contracts | $ | 135,488 | $ | (88,585 | ) | $ | 46,903 | $ | 130,573 | $ | (75,382 | ) | $ | 55,191 | ||||||||||
As of December 31, 2014 and 2013, the carrying values of these assets were as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Acquired software (4) | $ | 67,012 | $ | (56,806 | ) | $ | 10,206 | $ | 67,975 | $ | (53,820 | ) | $ | 14,155 | ||||||||||
Internal use software (5) | 64,517 | (29,991 | ) | 34,526 | 53,094 | (23,684 | ) | 29,410 | ||||||||||||||||
Total software | $ | 131,529 | $ | (86,797 | ) | $ | 44,732 | $ | 121,069 | $ | (77,504 | ) | $ | 43,565 | ||||||||||
Summary of Aggregate Amortization | ||||||||||||||||||||||||
The aggregate amortization related to client contracts included in our operations for 2014, 2013, and 2012, was as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Investments in client contracts (1) | $ | 6,409 | $ | 6,181 | $ | 7,591 | ||||||||||||||||||
Capitalized costs (2) | 1,007 | 2,365 | 4,172 | |||||||||||||||||||||
Acquired client contracts (3) | 11,951 | 14,999 | 17,017 | |||||||||||||||||||||
Total client contracts | $ | 19,367 | $ | 23,545 | $ | 28,780 | ||||||||||||||||||
· | Investments in client contracts consist principally of incentives provided to new or existing clients to convert their customer accounts to, or retain their customer’s accounts on, our customer care and billing systems. Investments in client contracts related to client incentives are amortized ratably over the lives of the respective client contracts, which as of December 31, 2014, have termination dates that range from 2015 through 2020. Amortization of the investments in client contracts related to client incentives is reflected as a reduction in processing and related services revenues in our Income Statements. | |||||||||||||||||||||||
· | Capitalized costs related to client conversion/set-up services related to long-term processing or managed services arrangements are generally amortized proportionately over the contract period that the processing or managed services are expected to be provided, and are primarily reflected in cost of processing and related services in our Income Statements. | |||||||||||||||||||||||
· | Acquired client contracts represent assets acquired in our prior business acquisitions. Acquired client contracts are being amortized over their estimated useful lives ranging from five to ten years based on the approximate pattern in which the economic benefits of the intangible assets are expected to be realized. Classification of the amortization of acquired client contracts generally follows where the acquired business’ cost of revenues are categorized in our Income Statements. | |||||||||||||||||||||||
The aggregate amortization related to software included in our operations for 2014, 2013, and 2012, was as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Acquired software (4) | $ | 3,457 | $ | 4,221 | $ | 5,700 | ||||||||||||||||||
Internal use software (5) | 8,404 | 7,633 | 6,985 | |||||||||||||||||||||
Total software | $ | 11,861 | $ | 11,854 | $ | 12,685 | ||||||||||||||||||
· | Acquired software represents the software intangible assets acquired in our prior business acquisitions, which are being amortized over their estimated useful lives ranging from five to ten years. | |||||||||||||||||||||||
· | Internal use software represents: (i) third-party software licenses; and (ii) the internal and external costs related to the implementation of the third-party software licenses. Internal use software is amortized over its estimated useful life ranging from twelve months to ten years. |
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Long-Term Debt | As of December 31, 2014 and 2013, our long-term debt was as follows (in thousands): | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
2012 Credit Agreement: | |||||||||||||||||||||
Term loan, due November 2017 (or December 2016 if certain conditions exist – see below), interest at adjusted LIBOR plus 2.00% (combined rate of 2.25% at December 31, 2014) | $ | 120,000 | $ | 135,000 | |||||||||||||||||
$100 million revolving loan facility, due November 2017 (or December 2016 if certain conditions exist – see below), interest at adjusted LIBOR plus applicable margin | — | — | |||||||||||||||||||
Convertible Debt Securities: | |||||||||||||||||||||
2010 Convertible Notes – senior subordinated convertible notes; due March 1, 2017; cash interest at 3.0%; net of unamortized OID of $14,169 and $19,950, respectively | 135,831 | 130,050 | |||||||||||||||||||
255,831 | 265,050 | ||||||||||||||||||||
Current portion of long-term debt | (22,500 | ) | (15,000 | ) | |||||||||||||||||
Total long-term debt, net | $ | 233,331 | $ | 250,050 | |||||||||||||||||
Estimated Maturities on Long-Term Debt | As of December 31, 2014, the estimated maturities of our long-term debt, based upon: (1) the mandatory repayment schedule for the 2012 Term Loan; and (2) the expected remaining life of the 2010 Convertible Notes, was as follows (in thousands): | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||
2012 Term Loan | $ | 22,500 | $ | 22,500 | $ | 75,000 | $ | — | $ | — | |||||||||||
2010 Convertible Notes | — | — | 150,000 | — | — | ||||||||||||||||
Total long-term debt repayments | $ | 22,500 | $ | 22,500 | $ | 225,000 | $ | — | $ | — | |||||||||||
Restructuring_and_Reorganizati1
Restructuring and Reorganization Charges (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring And Related Activities [Abstract] | |||||||||||||||||||||
Restructuring and Reorganization Charges | The activity in the business restructuring and reorganization reserves during 2014, 2013, and 2012 is as follows (in thousands): | ||||||||||||||||||||
Termination | Facilities | Disposition of Business Operations | Other | Total | |||||||||||||||||
Benefits | Abandonment | ||||||||||||||||||||
January 1, 2012, balance | $ | 3,771 | $ | 489 | $ | — | $ | — | $ | 4,260 | |||||||||||
Charged to expense during year | 1,835 | 630 | — | 4 | 2,469 | ||||||||||||||||
Cash payments | (3,704 | ) | — | — | (4 | ) | (3,708 | ) | |||||||||||||
Other | 15 | (666 | ) | — | — | (651 | ) | ||||||||||||||
December 31, 2012, balance | 1,917 | (453 | ) | — | — | $ | 2,370 | ||||||||||||||
Charged to expense during year | 5,577 | — | 3,588 | 3,240 | 12,405 | ||||||||||||||||
Cash payments | (3,741 | ) | — | (571 | ) | (19 | ) | (4,331 | ) | ||||||||||||
Adjustment for the loss on the disposition of business operations | — | — | — | (3,017 | ) | ||||||||||||||||
(3,017 | ) | ||||||||||||||||||||
Adjustment for the loss on termination of pension plan | — | — | — | (3,221 | ) | (3,221 | ) | ||||||||||||||
Other | 15 | (453 | ) | — | — | (489 | ) | ||||||||||||||
December 31, 2013, balance | 3,717 | — | — | — | 3,717 | ||||||||||||||||
Charged to expense during year | 5,589 | 1,146 | (222 | ) | 7,456 | 13,969 | |||||||||||||||
Cash payments | (6,421 | ) | — | — | (8,000 | ) | (14,421 | ) | |||||||||||||
Adjustment for the loss on the disposition of business operations | — | — | — | 222 | |||||||||||||||||
222 | |||||||||||||||||||||
Other | (66 | ) | (33 | ) | — | 560 | 461 | ||||||||||||||
December 31, 2014, balance | $ | 2,819 | $ | 1,113 | $ | — | $ | 16 | $ | 3,948 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Components of Net Income Before Income Taxes | Income Tax Provision/(Benefit). The components of net income from continuing operations before income taxes are as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 70,737 | $ | 63,278 | $ | 103,917 | ||||||
Foreign | (9,215 | ) | (1,759 | ) | (26,693 | ) | ||||||
Total | $ | 61,522 | $ | 61,519 | $ | 77,224 | ||||||
Schedule of Components of Income Tax Expense (Benefit) | The income tax provision related to continuing operations consists of the following (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 19,221 | $ | 7,260 | $ | 32,121 | ||||||
State | 2,348 | 453 | 4,133 | |||||||||
Foreign | 2,953 | 4,273 | 2,658 | |||||||||
24,522 | 11,986 | 38,912 | ||||||||||
Deferred: | ||||||||||||
Federal | 1,139 | 1,130 | (832 | ) | ||||||||
State | 837 | 2,329 | (3,977 | ) | ||||||||
Foreign | (1,935 | ) | (5,277 | ) | (5,758 | ) | ||||||
41 | (1,818 | ) | (10,567 | ) | ||||||||
Total income tax provision | $ | 24,563 | $ | 10,168 | $ | 28,345 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | The difference between our income tax provision computed at the statutory Federal income tax rate and our financial statement income tax related to continuing operations is summarized as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Provision at Federal rate of 35% | $ | 21,533 | $ | 21,532 | $ | 27,028 | ||||||
State income taxes, net of Federal impact | 2,070 | 1,808 | 101 | |||||||||
Research and experimentation credits | (2,045 | ) | (16,683 | ) | (3,651 | ) | ||||||
Tax uncertainties | 596 | 4,878 | 1,333 | |||||||||
Section 199 manufacturing deduction | (1,936 | ) | (2,263 | ) | (4,246 | ) | ||||||
Foreign rate differential | 2,847 | 1,133 | 3,108 | |||||||||
Valuation allowance for deferred tax assets | 3,602 | (3,312 | ) | 3,550 | ||||||||
Other impact of foreign operations | (3,555 | ) | 2,088 | 672 | ||||||||
Other | 1,451 | 987 | 450 | |||||||||
Total income tax provision | $ | 24,563 | $ | 10,168 | $ | 28,345 | ||||||
Net Deferred Income Tax Liabilities | Deferred Income Taxes. Net deferred income tax liabilities as of December 31, 2014 and 2013 are as follows (in thousands): | |||||||||||
2014 | 2013 | |||||||||||
Deferred income tax assets | $ | 77,201 | $ | 68,829 | ||||||||
Deferred income tax liabilities | (55,045 | ) | (48,830 | ) | ||||||||
Valuation allowance | (20,507 | ) | (17,741 | ) | ||||||||
Net deferred income tax assets | $ | 1,649 | $ | 2,258 | ||||||||
The Components of Net Deferred Income Tax Assets (Liabilities) | The components of our net deferred income tax assets (liabilities) as of December 31, 2014 and 2013 are as follows (in thousands): | |||||||||||
2014 | 2013 | |||||||||||
Net current deferred income tax assets: | ||||||||||||
Accrued expenses and reserves | $ | 10,221 | $ | 12,429 | ||||||||
Stock-based compensation | 4,425 | 3,929 | ||||||||||
Total current deferred income tax assets | 14,646 | 16,358 | ||||||||||
Less: valuation allowance | (1,442 | ) | (1,273 | ) | ||||||||
Net current deferred income tax assets | $ | 13,204 | $ | 15,085 | ||||||||
Net non-current deferred income tax assets: | ||||||||||||
Software | $ | 809 | $ | - | ||||||||
Client contracts and related intangibles | (5,252 | ) | $ | (952 | ) | |||||||
NOL carryforwards | 18,527 | 11,505 | ||||||||||
Property and equipment | 11,470 | 4,097 | ||||||||||
Deferred revenue | 550 | 1,209 | ||||||||||
Facility abandonment | 262 | 189 | ||||||||||
Other | 305 | 678 | ||||||||||
Total non-current deferred income tax assets | 26,671 | 16,726 | ||||||||||
Less: valuation allowance | (17,781 | ) | (9,279 | ) | ||||||||
Net non-current deferred income tax assets | $ | 8,890 | $ | 7,447 | ||||||||
Net non-current deferred income tax liabilities: | ||||||||||||
Software | $ | 211 | $ | 88 | ||||||||
Client contracts and related intangibles | 3,127 | (4,104 | ) | |||||||||
Goodwill | (6,747 | ) | (3,846 | ) | ||||||||
NOL carryforwards | 23,298 | 27,500 | ||||||||||
Property and equipment | (15,048 | ) | (4,812 | ) | ||||||||
Convertible debt securities | (27,708 | ) | (35,116 | ) | ||||||||
Deferred revenue | 961 | 4,470 | ||||||||||
Contingent payments | 840 | 836 | ||||||||||
Facility abandonment | 2,194 | 1,892 | ||||||||||
Other | (289 | ) | 7 | |||||||||
Total non-current deferred income tax liabilities | (19,161 | ) | (13,085 | ) | ||||||||
Less: valuation allowance | (1,284 | ) | (7,189 | ) | ||||||||
Net non-current deferred income tax liabilities | $ | (20,445 | ) | $ | (20,274 | ) | ||||||
Reconciliation of Beginning and Ending Balances of Liability for Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of our liability for unrecognized tax benefits is as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of year | $ | 9,517 | $ | 4,029 | $ | 4,114 | ||||||
Additions based on tax positions related to current year | 760 | 1,292 | 276 | |||||||||
Additions for tax positions of prior years | 30 | 4,597 | 933 | |||||||||
Reductions for tax positions of prior years | (677 | ) | (401 | ) | (764 | ) | ||||||
Lapse of statute of limitations | - | - | (530 | ) | ||||||||
Balance, end of year | $ | 9,630 | $ | 9,517 | $ | 4,029 | ||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Stockholders Equity Note [Abstract] | ||||||||||||||||||||||||
Summary of the Shares Repurchased under the Stock Repurchase Program | As of December 31, 2014, a summary of the shares repurchased under the Stock Repurchase Program is as follows (in thousands, except per share amounts): | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 1999-2010 | Total | |||||||||||||||||||
Shares repurchased | 733 | 500 | 823 | 750 | 30,797 | 33,603 | ||||||||||||||||||
Total cost | $ | 19,106 | $ | 10,129 | $ | 13,349 | $ | 9,930 | $ | 733,562 | $ | 786,076 | ||||||||||||
Weighted-average price per share | $ | 26.05 | $ | 20.23 | $ | 16.23 | $ | 13.24 | $ | 23.82 | $ | 23.39 | ||||||||||||
Equity_Compensation_Plans_Tabl
Equity Compensation Plans (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Summary of Unvested Restricted Common Stock Activity | A summary of our unvested restricted stock activity during 2014 is as follows (shares in thousands): | |||||||
2014 | ||||||||
Shares | Weighted- | |||||||
Average Grant | ||||||||
Date Fair Value | ||||||||
Unvested awards, January 1, 2014 | 1,922 | $ | 18.57 | |||||
Awards granted | 1,295 | 26.45 | ||||||
Awards forfeited/cancelled | (151 | ) | 20.19 | |||||
Awards vested | (755 | ) | 18.79 | |||||
Unvested awards, December 31, 2014 | 2,311 | $ | 22.81 | |||||
Unaudited_Quarterly_Financial_1
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information | Quarter Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
2014:00:00 | |||||||||||||||||
Total revenues | $ | 188,028 | $ | 184,558 | $ | 185,003 | $ | 193,697 | |||||||||
Total cost of revenues (exclusive of depreciation) | 102,104 | 93,682 | 94,470 | 99,087 | |||||||||||||
Operating income (1) | 20,914 | 21,820 | 13,831 | 19,125 | |||||||||||||
Income before income taxes (1) | 17,002 | 17,741 | 10,064 | 16,715 | |||||||||||||
Income tax provision (2) | (7,311 | ) | (8,338 | ) | (4,831 | ) | (4,083 | ) | |||||||||
Net income (1)(2) | 9,691 | 9,403 | 5,233 | 12,632 | |||||||||||||
Basic earnings per common share (1)(2) | $ | 0.3 | $ | 0.29 | $ | 0.16 | $ | 0.39 | |||||||||
Diluted earnings per common share (1)(2) | 0.28 | 0.28 | 0.15 | 0.38 | |||||||||||||
2013:00:00 | |||||||||||||||||
Total revenues | $ | 180,632 | $ | 186,107 | $ | 186,180 | $ | 194,549 | |||||||||
Total cost of revenues (exclusive of depreciation) | 93,354 | 94,758 | 94,898 | 94,155 | |||||||||||||
Operating income (3) | 18,035 | 21,681 | 20,553 | 16,435 | |||||||||||||
Income before income taxes (3) | 13,544 | 18,862 | 16,631 | 12,482 | |||||||||||||
Income tax benefit (provision) (2) | 1,354 | (6,790 | ) | (1,331 | ) | -3,401 | |||||||||||
Net income (2)(3) | 14,898 | 12,072 | 15,300 | 9,081 | |||||||||||||
Basic earnings per common share (2)(3) | $ | 0.46 | $ | 0.38 | $ | 0.48 | $ | 0.28 | |||||||||
Diluted earnings per common share (2)(3) | 0.46 | 0.37 | 0.47 | 0.27 | |||||||||||||
-1 | During the first, third, and fourth quarters of 2014 we incurred restructuring expenses of $1.2 million, $7.8 million, and $4.9 million, respectively, or $0.02, $0.12, and $0.11 per diluted share (see Note 6). | ||||||||||||||||
-2 | Fluctuations in our effective income tax rate between quarters generally relates to the accounting for discrete income tax items in any given quarter, and revisions of estimates for certain income tax components during the year. | ||||||||||||||||
•For 2014: Our effective income tax rates for the first, second, third, and fourth quarters were 43%, 47%, 48%, and 24%, respectively. The low fourth quarter rate can be mainly attributed to full year impact of the 2014 R&D tax credits, as the legislation was not passed until December 2014. | |||||||||||||||||
•For 2013: Our effective income tax rates for the first, second, third, and fourth quarters of 2013 were (10)%, 36%, 8%, and 27%, respectively. The negative rate in the first quarter of 2013 reflects the benefit of approximately $6 million of R&D tax credits that we generated in 2012, but were unable to include in the determination of our 2012 effective tax rate as the legislation was not signed into law until 2013. The lower income tax rates for the third and fourth quarter were mainly driven by incremental R&D income tax credits claimed for development activities from previous years and by the reduction of certain tax allowances related mainly to foreign operations, offset by increases in tax reserves for uncertainties, which provided a benefit of approximately $6 million and $2 million, respectively. | |||||||||||||||||
-3 | During the first and fourth quarters of 2013 we incurred restructuring expenses of $0.9 and $11.5 million, respectively, or $0.03 and $0.25 per diluted share (see Note 6). | ||||||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash | $4,700,000 | $4,500,000 | |
Proceeds from sale/maturity of short-term investments | 197,466,000 | 89,688,000 | 42,063,000 |
Research and development | $104,712,000 | $110,008,000 | $112,938,000 |
Common stock warrants issued, per warrant | $26.68 | ||
Common stock warrant | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Common stock warrants issued, per warrant | $26.68 | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Short-term investment contractual maturities | 2 years | 2 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Assets: | |||
Assets fair value | $142,121 | $161,541 | |
Liabilities: | |||
Liabilities fair value | 154 | ||
Cash equivalents | Money Market Funds | |||
Assets: | |||
Assets fair value | 9,785 | 13,761 | |
Cash equivalents | Commercial Paper | |||
Assets: | |||
Assets fair value | 12,248 | 19,629 | |
Short-term Investments | Municipal Bonds | |||
Assets: | |||
Assets fair value | 9,945 | 29,106 | |
Short-term Investments | Corporate Debt Securities | |||
Assets: | |||
Assets fair value | 88,494 | 76,786 | |
Short-term Investments | U.S. Government Agency Bonds | |||
Assets: | |||
Assets fair value | 11,313 | 18,050 | |
Short-term Investments | Asset-backed securities | |||
Assets: | |||
Assets fair value | 10,336 | 4,209 | |
Level 1 | |||
Assets: | |||
Assets fair value | 9,785 | 13,761 | |
Level 1 | Cash equivalents | Money Market Funds | |||
Assets: | |||
Assets fair value | 9,785 | 13,761 | |
Level 2 | |||
Assets: | |||
Assets fair value | 132,336 | 147,780 | |
Liabilities: | |||
Liabilities fair value | 154 | ||
Level 2 | Cash equivalents | Commercial Paper | |||
Assets: | |||
Assets fair value | 12,248 | 19,629 | |
Level 2 | Short-term Investments | Municipal Bonds | |||
Assets: | |||
Assets fair value | 9,945 | 29,106 | |
Level 2 | Short-term Investments | Corporate Debt Securities | |||
Assets: | |||
Assets fair value | 88,494 | 76,786 | |
Level 2 | Short-term Investments | U.S. Government Agency Bonds | |||
Assets: | |||
Assets fair value | 11,313 | 18,050 | |
Level 2 | Short-term Investments | Asset-backed securities | |||
Assets: | |||
Assets fair value | 10,336 | 4,209 | |
Interest rate swap contract | |||
Liabilities: | |||
Liabilities fair value | 154 | [1] | |
Interest rate swap contract | Level 2 | |||
Liabilities: | |||
Liabilities fair value | $154 | [1] | |
[1] | As of DecemberB 31, 2013, the fair value of the interest rate swap contract was classified on our Balance Sheet in other current liabilities. |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Carrying Value and Estimated Fair Value of Debt (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying value and estimated fair value of debt | ||
Credit Agreement, carrying value | $120,000 | $135,000 |
Credit Agreement, fair value | 120,000 | 135,000 |
Convertible debt, carrying value | 150,000 | 150,000 |
Convertible debt, fair value | $178,920 | $199,800 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts Receivable (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts Receivable | |||
Balance, beginning of year | $2,359 | $3,147 | $2,421 |
Additions (reductions) to expense | 1,406 | -354 | 1,039 |
Write-offs | -465 | -280 | -174 |
Other | 23 | -154 | -139 |
Balance, end of year | $3,323 | $2,359 | $3,147 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Schedule of Net Income Attributable to Common Stock and Participating Restricted Stock (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income attributed to: | |||
Common stock | $36,959 | $51,351 | $48,853 |
Participating common restricted stock | 26 | ||
Net income | $36,959 | $51,351 | $48,879 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Summary of Weighted-Average Shares Outstanding Used in the Basic and Diluted EPS Denominators (Details 4) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Weighted-average shares outstanding - Basic: | |||
Common stock | 32,449 | 32,117 | 32,142 |
Participating restricted stock | 17 | ||
Total | 32,449 | 32,117 | 32,159 |
Weighted-average shares outstanding - Diluted: | |||
Common stock | 33,736 | 32,873 | 32,459 |
Participating restricted stock | 17 | ||
Total | 33,736 | 32,873 | 32,476 |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Reconciliation of the Basic and Diluted EPS Denominators (Details 5) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of the basic and diluted EPS denominators | |||
Basic weighted-average common shares | 32,449 | 32,117 | 32,142 |
Dilutive effect of common stock options | 1 | 11 | |
Dilutive effect of non-participating restricted common stock | 569 | 550 | 306 |
Dilutive effect of 2010 Convertible Notes | 717 | 205 | |
Dilutive effect of Stock Warrants | 1 | ||
Diluted weighted-average common shares | 33,736 | 32,873 | 32,459 |
Segment_Reporting_and_Signific2
Segment Reporting and Significant Concentration (Details Textual) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting and Significant Concentration (Textual) [Abstract] | ||
Number of reportable segments | 1 | |
Number of major customers | 3 | |
Americas | Sales Revenue, Net | Customer Concentration Risk | ||
Segment Reporting and Significant Concentration (Textual) [Abstract] | ||
Revenues attributable to operations in Americas | 85.00% | 85.00% |
Segment_Reporting_and_Signific3
Segment Reporting and Significant Concentration (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Total Revenues: | |||||||||||
Total revenues | $193,697 | $185,003 | $184,558 | $188,028 | $194,549 | $186,180 | $186,107 | $180,632 | $751,286 | $747,468 | $756,866 |
Property and Equipment: | |||||||||||
Property and Equipment | 38,326 | 35,061 | 38,326 | 35,061 | |||||||
Americas (principally the U.S.) | |||||||||||
Total Revenues: | |||||||||||
Total revenues | 636,482 | 633,163 | 652,008 | ||||||||
Property and Equipment: | |||||||||||
Property and Equipment | 31,912 | 27,115 | 31,912 | 27,115 | |||||||
Europe, Middle East and Africa (principally Europe) | |||||||||||
Total Revenues: | |||||||||||
Total revenues | 79,535 | 80,527 | 73,113 | ||||||||
Property and Equipment: | |||||||||||
Property and Equipment | 3,618 | 4,280 | 3,618 | 4,280 | |||||||
Asia Pacific | |||||||||||
Total Revenues: | |||||||||||
Total revenues | 35,269 | 33,778 | 31,745 | ||||||||
Property and Equipment: | |||||||||||
Property and Equipment | $2,796 | $3,666 | $2,796 | $3,666 |
Segment_Reporting_and_Signific4
Segment Reporting and Significant Concentration - Schedule of Percentages of Revenue from Significant Clients (Details) (Customer Concentration Risk, Sales Revenue, Net) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Comcast | |||
Segment Reporting Information [Line Items] | |||
Revenue by Major Client, Percentage | 22.00% | 19.00% | 20.00% |
DISH | |||
Segment Reporting Information [Line Items] | |||
Revenue by Major Client, Percentage | 15.00% | 15.00% | 14.00% |
Time Warner | |||
Segment Reporting Information [Line Items] | |||
Revenue by Major Client, Percentage | 11.00% | 11.00% | 10.00% |
Segment_Reporting_and_Signific5
Segment Reporting and Significant Concentration (Details 2) (Accounts Receivable, Customer Concentration Risk) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Comcast | ||
Trade accounts receivable: | ||
Accounts Receivable by Significant Client, Percentage | 21.00% | 21.00% |
DISH | ||
Trade accounts receivable: | ||
Accounts Receivable by Significant Client, Percentage | 13.00% | 14.00% |
Time Warner | ||
Trade accounts receivable: | ||
Accounts Receivable by Significant Client, Percentage | 12.00% | 9.00% |
LongLived_Assets_Details
Long-Lived Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Property and Equipment | ||
Property and equipment, gross | 176,391 | $164,583 |
Lessbaccumulated depreciation | -138,065 | -129,522 |
Property and equipment, net | 38,326 | 35,061 |
Computer equipment | ||
Summary of Property and Equipment | ||
Property and equipment, gross | 96,749 | 89,605 |
Computer equipment | Minimum | ||
Summary of Property and Equipment | ||
Property and equipment, useful lives | 3 years | |
Computer equipment | Maximum | ||
Summary of Property and Equipment | ||
Property and equipment, useful lives | 5 years | |
Leasehold improvements | ||
Summary of Property and Equipment | ||
Property and equipment, gross | 16,566 | 15,793 |
Leasehold improvements | Minimum | ||
Summary of Property and Equipment | ||
Property and equipment, useful lives | 5 years | |
Leasehold improvements | Maximum | ||
Summary of Property and Equipment | ||
Property and equipment, useful lives | 10 years | |
Operating equipment | ||
Summary of Property and Equipment | ||
Property and equipment, gross | 55,501 | 48,759 |
Operating equipment | Minimum | ||
Summary of Property and Equipment | ||
Property and equipment, useful lives | 3 years | |
Operating equipment | Maximum | ||
Summary of Property and Equipment | ||
Property and equipment, useful lives | 8 years | |
Furniture and fixtures | ||
Summary of Property and Equipment | ||
Property and equipment, gross | 7,531 | 10,426 |
Furniture and fixtures | Minimum | ||
Summary of Property and Equipment | ||
Property and equipment, useful lives | 3 years | |
Furniture and fixtures | Maximum | ||
Summary of Property and Equipment | ||
Property and equipment, useful lives | 8 years | |
Capital projects in process | ||
Summary of Property and Equipment | ||
Property and equipment, useful lives | 0 years | |
Property and equipment, gross | 44 |
LongLived_Assets_Details_1
Long-Lived Assets (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill Rollforward | ||
Beginning balance | $233,599 | $233,365 |
Adjustments for the dispositions of business operations | -1,967 | |
Revisions related to prior acquisitions | -59 | -164 |
Effects of changes in foreign currency exchange rates | -8,271 | 2,365 |
Ending balance | $225,269 | $233,599 |
LongLived_Assets_Details_Textu
Long-Lived Assets (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Finite Lived Intangible Assets [Line Items] | ||
Write-down of goodwill | $1,967,000 | |
Proceeds from the disposition of business operations | 1,130,000 | 4,530,000 |
Loss on disposition of business operations | 222,000 | -3,017,000 |
Client contracts | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 63 months | |
Estimated total amortization expense 2015 | 14,800,000 | |
Estimated total amortization expense 2016 | 10,500,000 | |
Estimated total amortization expense 2017 | 8,300,000 | |
Estimated total amortization expense 2018 | 6,200,000 | |
Estimated total amortization expense 2019 | 4,200,000 | |
Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 78 months | |
Estimated total amortization expense 2015 | 10,500,000 | |
Estimated total amortization expense 2016 | 8,000,000 | |
Estimated total amortization expense 2017 | 6,600,000 | |
Estimated total amortization expense 2018 | 5,300,000 | |
Estimated total amortization expense 2019 | $3,600,000 |
LongLived_Assets_Schedule_of_F
Long-Lived Assets - Schedule of Finite-Lived Intangible Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Client contracts | ||
Summary of carrying value of assets | ||
Gross Carrying Amount | $135,488 | $130,573 |
Accumulated Amortization | -88,585 | -75,382 |
Net Amount | 46,903 | 55,191 |
Client contracts | Investments in client contracts | ||
Summary of carrying value of assets | ||
Gross Carrying Amount | 34,657 | 27,370 |
Accumulated Amortization | -23,907 | -20,345 |
Net Amount | 10,750 | 7,025 |
Client contracts | Capitalized costs | ||
Summary of carrying value of assets | ||
Gross Carrying Amount | 6,667 | 5,003 |
Accumulated Amortization | -3,463 | -3,340 |
Net Amount | 3,204 | 1,663 |
Client contracts | Acquired client contracts | ||
Summary of carrying value of assets | ||
Gross Carrying Amount | 94,164 | 98,200 |
Accumulated Amortization | -61,215 | -51,697 |
Net Amount | 32,949 | 46,503 |
Software | ||
Summary of carrying value of assets | ||
Gross Carrying Amount | 131,529 | 121,069 |
Accumulated Amortization | -86,797 | -77,504 |
Net Amount | 44,732 | 43,565 |
Software | Acquired software | ||
Summary of carrying value of assets | ||
Gross Carrying Amount | 67,012 | 67,975 |
Accumulated Amortization | -56,806 | -53,820 |
Net Amount | 10,206 | 14,155 |
Software | Internal use software | ||
Summary of carrying value of assets | ||
Gross Carrying Amount | 64,517 | 53,094 |
Accumulated Amortization | -29,991 | -23,684 |
Net Amount | $34,526 | $29,410 |
Long_Lived_Assets_Details_3
Long Lived Assets (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Client contracts | |||
Summary of aggregate amortization | |||
Total amortization expense | $19,367 | $23,545 | $28,780 |
Client contracts | Investments in client contracts | |||
Summary of aggregate amortization | |||
Total amortization expense | 6,409 | 6,181 | 7,591 |
Client contracts | Capitalized costs | |||
Summary of aggregate amortization | |||
Total amortization expense | 1,007 | 2,365 | 4,172 |
Client contracts | Acquired client contracts | |||
Summary of aggregate amortization | |||
Total amortization expense | 11,951 | 14,999 | 17,017 |
Software | |||
Summary of aggregate amortization | |||
Total amortization expense | 11,861 | 11,854 | 12,685 |
Software | Acquired software | |||
Summary of aggregate amortization | |||
Total amortization expense | 3,457 | 4,221 | 5,700 |
Software | Internal use software | |||
Summary of aggregate amortization | |||
Total amortization expense | $8,404 | $7,633 | $6,985 |
LongLived_Assets_Parenthetical
Long-Lived Assets (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Acquired client contracts | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Acquired client contracts | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Acquired software | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Acquired software | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Internal use software | Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 12 months |
Internal use software | Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Debt_LongTerm_Debt_Details
Debt -Long-Term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Carrying value of debt | $255,831 | $265,050 |
Current portion of long-term debt | -22,500 | -15,000 |
Total long-term debt, net | 233,331 | 250,050 |
Senior Subordinated Convertible Notes 2010 | ||
Debt Instrument [Line Items] | ||
Carrying value of debt | 135,831 | 130,050 |
2012 Credit Agreement | Term Loan | ||
Debt Instrument [Line Items] | ||
Carrying value of debt | $120,000 | $135,000 |
Debt_LongTerm_Debt_Parenthetic
Debt - Long-Term Debt (Parenthetical) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2010 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Unamortized original issue discount | 14,169,000 | $19,950,000 | |
Senior Subordinated Convertible Notes 2010 | |||
Debt Instrument [Line Items] | |||
Maturity period | 1-Mar-17 | 1-Mar-17 | |
Interest rate on senior subordinated convertible notes | 3.00% | 3.00% | |
Unamortized original issue discount | 38,400,000 | ||
2012 Credit Agreement | |||
Debt Instrument [Line Items] | |||
2012 Credit agreement early termination date | 1-Dec-16 | ||
2012 Credit Agreement | Term Loan | |||
Debt Instrument [Line Items] | |||
Basis spread on term loan | 2.00% | ||
Term loan combined interest rate | 2.25% | ||
Maturity period | 30-Nov-17 | ||
2012 Credit agreement early termination date | 1-Dec-16 | ||
2012 Credit Agreement | Revolving Loan | |||
Debt Instrument [Line Items] | |||
Amount available under revolving loan facility | 100,000,000 | $100,000,000 | |
Maturity period | 30-Nov-17 | ||
2012 Credit agreement early termination date | 1-Dec-16 |
Debt_2012_Credit_Agreement_Det
Debt - 2012 Credit Agreement (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | |||
Proceeds from issuance of debt | $150,000,000 | ||
Minimum amount of combined unrestricted cash and cash equivalents and unused availability under the 2012 Revolver that provides for early termination of 2012 Credit Agreement | 200,000,000 | ||
Cash used for repayment of debt | 15,000,000 | 15,000,000 | 190,000,000 |
Term Loan | |||
Debt Instrument [Line Items] | |||
Credit agreement period | 5 years | ||
Proceeds from issuance of debt | 150,000,000 | ||
Revolving Loan | |||
Debt Instrument [Line Items] | |||
Credit agreement period | 5 years | ||
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Credit Agreement | 250,000,000 | ||
Credit Agreement | Term Loan | |||
Debt Instrument [Line Items] | |||
Credit Agreement | 150,000,000 | ||
Credit Agreement | Revolving Loan | |||
Debt Instrument [Line Items] | |||
Credit Agreement | 100,000,000 | ||
2012 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.38% | ||
2012 Credit agreement early termination date | 1-Dec-16 | ||
Cash used for repayment of debt | 15,000,000 | ||
2012 Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on term loan | 2.00% | ||
LIBOR contract rate lock in period | 1 month | ||
2012 Credit Agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on term loan | 2.75% | ||
LIBOR contract rate lock in period | 6 months | ||
2012 Credit Agreement | Term Loan | |||
Debt Instrument [Line Items] | |||
Basis spread on term loan | 2.00% | ||
Term loan combined interest rate | 2.25% | ||
2012 Credit agreement early termination date | 1-Dec-16 | ||
2012 Credit Agreement | Term Loan 2012 | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on term loan | 1.00% | ||
2012 Credit Agreement | Term Loan 2012 | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on term loan | 1.75% | ||
2012 Credit Agreement | Revolving Loan | |||
Debt Instrument [Line Items] | |||
Credit Agreement | $100,000,000 | $100,000,000 | |
2012 Credit agreement early termination date | 1-Dec-16 |
Debt_2010_Convertible_Notes_De
Debt - 2010 Convertible Notes (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2010 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Long-term debt, unamortized original issue discount | $14,169,000 | $19,950,000 | |
Senior Subordinated Convertible Notes 2010 | |||
Debt Instrument [Line Items] | |||
Senior subordinated convertible notes face amount | 150,000,000 | ||
Interest rate on senior subordinated convertible notes | 3.00% | 3.00% | |
Notes Issuance price percentage of par value | 100.00% | ||
Maturity date of 2010 Convertible Notes | 1-Mar-17 | 1-Mar-17 | |
Initial conversion price | $23.45 | ||
Common stock price trigger | $30.49 | ||
Rate of conversion price | 130.00% | ||
Average Conversion Value for the 2010 Convertible Notes | 98.00% | ||
Conversion obligation settlement in cash | 100.00% | ||
Conversion obligation exceeded the par value | 10,000,000 | ||
Long-term debt, unamortized original issue discount | 38,400,000 | ||
Effective interest rate of the liability | 7.75% | ||
Senior Subordinated Convertible Notes 2010 | Post Dividend Declarations | |||
Debt Instrument [Line Items] | |||
Initial conversion price | $23.45 | ||
Initial conversion rate of common stock | 42.6404 | ||
Convertible Notes, initial conversion of Par Value Convertible Notes to common stock | $1,000 |
Debt_Details_1
Debt (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Estimated Maturities on Long-Term Debt | |
2015 | $22,500 |
2016 | 22,500 |
2017 | 225,000 |
Term Loan | 2012 Credit Agreement | |
Estimated Maturities on Long-Term Debt | |
2015 | 22,500 |
2016 | 22,500 |
2017 | 75,000 |
Senior Subordinated Convertible Notes 2010 | |
Estimated Maturities on Long-Term Debt | |
2017 | $150,000 |
Debt_Deferred_Financing_Costs_
Debt - Deferred Financing Costs (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||
Amortization expenses of deferred financing costs included in Interest expense | $2.50 | $2.60 | $2.70 |
Weighted-average interest rate on debt borrowings | 6.00% | 5.00% | 6.00% |
Senior Subordinated Convertible Notes 2010 | |||
Debt Instrument [Line Items] | |||
Deferred financing costs related to convertible notes | 1.3 | ||
2012 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Deferred financing costs related to convertible notes | $4.20 |
Debt_2015_Credit_Agreement_Det
Debt - 2015 Credit Agreement (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 27, 2015 | |
Debt Instrument [Line Items] | ||||
Cash used for repayment of debt | $15,000,000 | $15,000,000 | $190,000,000 | |
2015 Credit Agreement | Revolving Loan | ||||
Debt Instrument [Line Items] | ||||
Credit Agreement | 100,000,000 | |||
Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, frequency of periodic payment | payable quarterly | |||
Debt instrument, interest rate terms | The 2015 Credit Agreement includes mandatory repayments of the aggregate principal amount of the 2015 Term Loan (payable quarterly) for the first (5% of total), second (5% of total), third (10% of total), fourth (15% of total), and fifth years (15% of total), with the remaining principal balance due at maturity (50% of total). The 2015 Credit Agreement has no prepayment penalties and requires mandatory repayments under certain circumstances, including: (i) asset sales or casualty proceeds; and (ii) proceeds of debt or preferred stock issuances. | |||
Subsequent Event | 2015 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Credit Agreement | 350,000,000 | |||
Cash used for repayment of debt | 120,000,000 | |||
Increase (decrease) in available cash | 30,000,000 | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||
Credit agreement interest rate | 1.97% | |||
Term loan combined interest rate | 1.75% | |||
Financing cost | 2,400,000 | |||
Subsequent Event | 2015 Credit Agreement | Minimum | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||
Subsequent Event | 2015 Credit Agreement | Maximum | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.38% | |||
Subsequent Event | 2015 Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on term loan | 1.75% | |||
Subsequent Event | 2015 Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on term loan | 2.75% | |||
Subsequent Event | 2015 Credit Agreement | Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on term loan | 0.75% | |||
Subsequent Event | 2015 Credit Agreement | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on term loan | 1.75% | |||
Subsequent Event | 2015 Credit Agreement | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Credit Agreement | 150,000,000 | |||
Subsequent Event | 2015 Credit Agreement | Revolving Loan | ||||
Debt Instrument [Line Items] | ||||
Credit Agreement | 200,000,000 |
Restructuring_and_Reorganizati2
Restructuring and Reorganization Charges (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employees | Employees | Employees | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring and reorganization charges recorded during the year | $4,900 | $7,800 | $1,200 | $11,500 | $900 | $13,969 | $12,405 | $2,469 | |
Reduced workforce | 60 | 160 | 40 | ||||||
Loss on disposition of business operations | 222 | -3,017 | |||||||
Adjustment for the loss on termination of pension plan | 3,221 | ||||||||
Cash payments | 14,421 | 4,331 | 3,708 | ||||||
Restructuring and reorganization reserve | 3,948 | 3,717 | 3,948 | 3,717 | 2,370 | 4,260 | |||
Current Liabilities | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring and reorganization reserve | 3,100 | 3,100 | |||||||
Print operation | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring and reorganization charges recorded during the year | 3,600 | ||||||||
Involuntary Terminations | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring and reorganization charges recorded during the year | 5,600 | 5,600 | 1,000 | ||||||
Termination costs | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Cash payments | 8,000 | ||||||||
Abandonment of Office Facility | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring and reorganization charges recorded during the year | 1,100 | 500 | |||||||
Ascade Management | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring and reorganization charges recorded during the year | $600 |
Restructuring_and_Reorganizati3
Restructuring and Reorganization Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Activity in the business restructuring reserves related to continuing operations | ||||||||
Beginning Balance | $3,717 | $2,370 | $3,717 | $2,370 | $4,260 | |||
Restructuring and reorganization charges recorded during the year | 4,900 | 7,800 | 1,200 | 11,500 | 900 | 13,969 | 12,405 | 2,469 |
Cash payments | -14,421 | -4,331 | -3,708 | |||||
Adjustment for the loss on the disposition of business operations | 222 | -3,017 | ||||||
Adjustment for the loss on termination of pension plan | -3,221 | |||||||
Other | 461 | -489 | -651 | |||||
Ending Balance | 3,948 | 3,717 | 3,948 | 3,717 | 2,370 | |||
Termination Benefits | ||||||||
Activity in the business restructuring reserves related to continuing operations | ||||||||
Beginning Balance | 3,717 | 1,917 | 3,717 | 1,917 | 3,771 | |||
Restructuring and reorganization charges recorded during the year | 5,589 | 5,577 | 1,835 | |||||
Cash payments | -6,421 | -3,741 | -3,704 | |||||
Adjustment for the loss on the disposition of business operations | 0 | 0 | ||||||
Adjustment for the loss on termination of pension plan | 0 | |||||||
Other | -66 | 15 | 15 | |||||
Ending Balance | 2,819 | 3,717 | 2,819 | 3,717 | 1,917 | |||
Facilities Abandonment | ||||||||
Activity in the business restructuring reserves related to continuing operations | ||||||||
Beginning Balance | 0 | -453 | 0 | -453 | 489 | |||
Restructuring and reorganization charges recorded during the year | 1,146 | 0 | 630 | |||||
Cash payments | 0 | 0 | 0 | |||||
Adjustment for the loss on the disposition of business operations | 0 | 0 | ||||||
Adjustment for the loss on termination of pension plan | 0 | |||||||
Other | -33 | -453 | -666 | |||||
Ending Balance | 1,113 | 0 | 1,113 | 0 | -453 | |||
Disposition of Business Operations | ||||||||
Activity in the business restructuring reserves related to continuing operations | ||||||||
Beginning Balance | 0 | 0 | 0 | 0 | 0 | |||
Restructuring and reorganization charges recorded during the year | -222 | 3,588 | 0 | |||||
Cash payments | 0 | -571 | 0 | |||||
Adjustment for the loss on the disposition of business operations | 222 | -3,017 | ||||||
Adjustment for the loss on termination of pension plan | 0 | |||||||
Other | 0 | 0 | 0 | |||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | |||
Other | ||||||||
Activity in the business restructuring reserves related to continuing operations | ||||||||
Beginning Balance | 0 | 0 | 0 | 0 | 0 | |||
Restructuring and reorganization charges recorded during the year | 7,456 | 3,240 | 4 | |||||
Cash payments | -8,000 | -19 | -4 | |||||
Adjustment for the loss on the disposition of business operations | 0 | 0 | ||||||
Adjustment for the loss on termination of pension plan | -3,221 | |||||||
Other | 560 | 0 | 0 | |||||
Ending Balance | $16 | $0 | $16 | $0 | $0 |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Income Before Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Components of net income before income taxes | |||||||||||||||||||
Domestic | $70,737 | $63,278 | $103,917 | ||||||||||||||||
Foreign | -9,215 | -1,759 | -26,693 | ||||||||||||||||
Income before income taxes | $16,715 | [1] | $10,064 | [1] | $17,741 | [1] | $17,002 | [1] | $12,482 | [2] | $16,631 | [2] | $18,862 | [2] | $13,544 | [2] | $61,522 | $61,519 | $77,224 |
[1] | During the first, third, and fourth quarters of 2014 we incurred restructuring expenses of $1.2 million, $7.8 million, and $4.9 million, respectively, or $0.02, $0.12, and $0.11 per diluted share (see Note 6). | ||||||||||||||||||
[2] | During the first and fourth quarters of 2013 we incurred restructuring expenses of $0.9 and $11.5 million, respectively, or $0.03 and $0.25 per diluted share (see Note 6). |
Income_Taxes_Schedule_of_Compo
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Current: | |||||||||||||||||||
Federal | $19,221 | $7,260 | $32,121 | ||||||||||||||||
State | 2,348 | 453 | 4,133 | ||||||||||||||||
Foreign | 2,953 | 4,273 | 2,658 | ||||||||||||||||
Total | 24,522 | 11,986 | 38,912 | ||||||||||||||||
Deferred: | |||||||||||||||||||
Federal | 1,139 | 1,130 | -832 | ||||||||||||||||
State | 837 | 2,329 | -3,977 | ||||||||||||||||
Foreign | -1,935 | -5,277 | -5,758 | ||||||||||||||||
Total | 41 | -1,818 | -10,567 | ||||||||||||||||
Total income tax provision | $4,083 | [1] | $4,831 | [1] | $8,338 | [1] | $7,311 | [1] | $3,401 | [1] | $1,331 | [1] | $6,790 | [1] | ($1,354) | [1] | $24,563 | $10,168 | $28,345 |
[1] | Fluctuations in our effective income tax rate between quarters generally relates to the accounting for discrete income tax items in any given quarter, and revisions of estimates for certain income tax components during the year. b"For 2014: Our effective income tax rates for the first, second, third, and fourth quarters were 43%, 47%, 48%, and 24%, respectively. The low fourth quarter rate can be mainly attributed to full year impact of the 2014 R&D tax credits, as the legislation was not passed until December 2014.b"For 2013: Our effective income tax rates for the first, second, third, and fourth quarters of 2013 were (10)%, 36%, 8%, and 27%, respectively. The negative rate in the first quarter of 2013 reflects the benefit of approximately $6 million of R&D tax credits that we generated in 2012, but were unable to include in the determination of our 2012 effective tax rate as the legislation was not signed into law until 2013. The lower income tax rates for the third and fourth quarter were mainly driven by incremental R&D income tax credits claimed for development activities from previous years and by the reduction of certain tax allowances related mainly to foreign operations, offset by increases in tax reserves for uncertainties, which provided a benefit of approximately $6 million and $2 million, respectively. |
Income_Taxes_Income_Tax_Provis
Income Taxes - Income Tax Provision/(Benefit) and Deferred Income Taxes (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||||
Deferred state income tax provision, Impact of state income tax law change | ($3,100,000) | ||||
Undistributed Earnings of Foreign Subsidiaries | 33,000,000 | ||||
2012 R&D tax credits recorded in 2013 | 6,000,000 | ||||
Incremental R&D tax credits related to Prior Periods | 5,000,000 | ||||
Reduction of Certain Tax Allowances | 6,000,000 | ||||
Deferred income tax assets benefits percentage | 100.00% | ||||
Valuation allowance | 20,507,000 | 17,741,000 | |||
Deferred income tax assets related to state income tax jurisdictions | 2,700,000 | ||||
Deferred income tax assets related to foreign income tax jurisdictions | 35,600,000 | ||||
Valuation allowance against deferred tax assets related to state jurisdictions | 2,500,000 | ||||
Valuation allowance against deferred tax assets related to foreign jurisdictions | 18,000,000 | ||||
Cash payments related to the deferred income tax liabilities associated with the 2004 Convertible Debt Securities | 6,000,000 | 6,000,000 | 5,600,000 | ||
Deferred income tax liability related to debt securities repurchased | 23,000,000 | ||||
Payment period of deferred income tax liabilities associated with Convertible Debt | 4 years | ||||
Domestic Country | |||||
Income Taxes [Line Items] | |||||
Valuation allowance | 0 | ||||
Operating loss carryforward | 51,000,000 | 51,000,000 | |||
Operating Loss Carryforwards, Expiration Dates | begin to expire in 2019 and can be utilized through 2030 | ||||
Interest rate used for tax deduction | 9.09% | ||||
State And Local Jurisdiction | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforward | 63,000,000 | 50,000,000 | |||
Operating Loss Carryforwards, Expiration Dates | will expire beginning in 2015 and end in 2035 | ||||
Foreign Country | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforward | $96,000,000 | $90,000,000 | |||
Operating Loss Carryforwards, Expiration Dates | 2017 |
Income_Taxes_Schedule_of_Effec
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Difference between income tax provision computed at the statutory Federal income tax rate and financial statement income tax related to continuing operations | |||||||||||||||||||
Provision at Federal rate of 35% | $21,533 | $21,532 | $27,028 | ||||||||||||||||
State income taxes, net of Federal impact | 2,070 | 1,808 | 101 | ||||||||||||||||
Research and experimentation credits | -2,045 | -16,683 | -3,651 | ||||||||||||||||
Tax uncertainties | 596 | 4,878 | 1,333 | ||||||||||||||||
Section 199 manufacturing deduction | -1,936 | -2,263 | -4,246 | ||||||||||||||||
Foreign rate differential | 2,847 | 1,133 | 3,108 | ||||||||||||||||
Valuation allowance for deferred tax assets | 3,602 | -3,312 | 3,550 | ||||||||||||||||
Other impact of foreign operations | -3,555 | 2,088 | 672 | ||||||||||||||||
Other | 1,451 | 987 | 450 | ||||||||||||||||
Total income tax provision | $4,083 | [1] | $4,831 | [1] | $8,338 | [1] | $7,311 | [1] | $3,401 | [1] | $1,331 | [1] | $6,790 | [1] | ($1,354) | [1] | $24,563 | $10,168 | $28,345 |
[1] | Fluctuations in our effective income tax rate between quarters generally relates to the accounting for discrete income tax items in any given quarter, and revisions of estimates for certain income tax components during the year. b"For 2014: Our effective income tax rates for the first, second, third, and fourth quarters were 43%, 47%, 48%, and 24%, respectively. The low fourth quarter rate can be mainly attributed to full year impact of the 2014 R&D tax credits, as the legislation was not passed until December 2014.b"For 2013: Our effective income tax rates for the first, second, third, and fourth quarters of 2013 were (10)%, 36%, 8%, and 27%, respectively. The negative rate in the first quarter of 2013 reflects the benefit of approximately $6 million of R&D tax credits that we generated in 2012, but were unable to include in the determination of our 2012 effective tax rate as the legislation was not signed into law until 2013. The lower income tax rates for the third and fourth quarter were mainly driven by incremental R&D income tax credits claimed for development activities from previous years and by the reduction of certain tax allowances related mainly to foreign operations, offset by increases in tax reserves for uncertainties, which provided a benefit of approximately $6 million and $2 million, respectively. |
Income_Taxes_Parenthetical_Det
Income Taxes - (Parenthetical) (Details 2) | 12 Months Ended |
Dec. 31, 2014 | |
Difference between income tax provision computed at the statutory Federal income tax rate and financial statement income tax related to continuing operations | |
Provision at Federal rate | 35.00% |
Income_Taxes_Net_Deferred_Inco
Income Taxes - Net Deferred Income Tax Liabilities (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Net deferred income tax liabilities | ||
Deferred income tax assets | $77,201 | $68,829 |
Deferred income tax liabilities | -55,045 | -48,830 |
Valuation allowance | -20,507 | -17,741 |
Net deferred income tax assets | $1,649 | $2,258 |
Income_Taxes_The_Components_of
Income Taxes - The Components of Net Deferred Income Tax Assets (Liabilities) (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Net current deferred income tax assets: | ||
Accrued expenses and reserves | $10,221 | $12,429 |
Stock-based compensation | 4,425 | 3,929 |
Total current deferred income tax assets | 14,646 | 16,358 |
Less: valuation allowance | -1,442 | -1,273 |
Net current deferred income tax assets | 13,204 | 15,085 |
Net non-current deferred income tax assets: | ||
NOL carryforwards | 18,527 | 11,505 |
Property and equipment | 11,470 | 4,097 |
Deferred revenue | 550 | 1,209 |
Facility abandonment | 262 | 189 |
Other | 305 | 678 |
Total non-current deferred income tax assets | 26,671 | 16,726 |
Less: valuation allowance | -17,781 | -9,279 |
Net non-current deferred income tax assets | 8,890 | 7,447 |
Net non-current deferred income tax liabilities: | ||
Software | 211 | 88 |
Client contracts and related intangibles | 3,127 | -4,104 |
Goodwill | -6,747 | -3,846 |
NOL carryforwards | 23,298 | 27,500 |
Property and equipment | -15,048 | -4,812 |
Convertible debt securities | -27,708 | -35,116 |
Deferred revenue | 961 | 4,470 |
Contingent payments | 840 | 836 |
Facility abandonment | 2,194 | 1,892 |
Other | -289 | 7 |
Total non-current deferred income tax liabilities | -19,161 | -13,085 |
Less: valuation allowance | -1,284 | -7,189 |
Net non-current deferred income tax liabilities | -20,445 | -20,274 |
Software | ||
Net non-current deferred income tax assets: | ||
Intangibles | 809 | |
Client contracts | ||
Net non-current deferred income tax assets: | ||
Intangibles | ($5,252) | ($952) |
Income_Taxes_A_Reconciliation_
Income Taxes - A Reconciliation of the Beginning and Ending Balances of our Liability for Unrecognized Tax Benefits (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrecognized tax benefits | |||
Balance, beginning of year | $9,517 | $4,029 | $4,114 |
Additions based on tax positions related to current year | 760 | 1,292 | 276 |
Additions for tax positions of prior years | 30 | 4,597 | 933 |
Reductions for tax positions of prior years | -677 | -401 | -764 |
Lapse of statute of limitations | -530 | ||
Balance, end of year | $9,630 | $9,517 | $4,029 |
Income_Taxes_Accounting_for_Un
Income Taxes - Accounting for Uncertainty in Income Taxes (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes (Textual) [Abstract] | ||||
Liability for unrecognized tax benefits | $9,630,000 | $9,517,000 | $4,029,000 | $4,114,000 |
Income tax related to accrued interest | 500,000 | 300,000 | 200,000 | |
Unrecognized tax benefits that would favorably impact the tax rate | $9,600,000 |
Employee_Retirement_Benefit_Pl1
Employee Retirement Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Retirement Benefit Plans (Textual) [Abstract] | |||
Maximum employee annual contributions, percent | 100.00% | ||
US Based Employees | |||
Employee Retirement Benefit Plans (Textual) [Abstract] | |||
Total contributions under plans | $9 | $9.70 | $9 |
Non US Based Employees | |||
Employee Retirement Benefit Plans (Textual) [Abstract] | |||
Total contributions under plans | $5 | $4.80 | $4.60 |
Commitments_Guarantees_and_Con1
Commitments, Guarantees and Contingencies (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loss Contingencies [Line Items] | |||
Payments under operating lease agreement in 2015 | $13.90 | ||
Payments under operating lease agreement in 2016 | 12.8 | ||
Payments under operating lease agreement in 2017 | 12.1 | ||
Payments under operating lease agreement in 2018 | 11.4 | ||
Payments under operating lease agreement in 2019 | 9.7 | ||
Thereafter | 34.2 | ||
Operating Leases, Rent Expense | 19.9 | 20 | 18.3 |
Infocrossing service agreement expiry date | 30-Jun-17 | ||
Warranty Period | 90 days | ||
Litigation Settlement Amount to be Received | 6 | ||
Reduction of SG&A expense, net related to litigation settlement | $3.90 | ||
Building and Building Improvements | |||
Loss Contingencies [Line Items] | |||
Noncancellable operating leases expiry term | 2025-06 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of the Shares Repurchased under the Stock Repurchase Program (Details) (USD $) | 12 Months Ended | 132 Months Ended | 180 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2014 |
Summary of the shares repurchased under stock repurchase Program | ||||||
Shares repurchased | 733 | 500 | 823 | 750 | 30,797 | 33,603 |
Total cost | $19,106 | $10,129 | $13,349 | $9,930 | $733,562 | $786,076 |
Weighted-average price per share | $26.05 | $20.23 | $16.23 | $13.24 | $23.82 | $23.39 |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Jul. 25, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jan. 31, 2015 | Feb. 28, 2015 |
CustomerAccount | |||||||
Stockholders' Equity Transactions | |||||||
Remaining number of shares available for repurchase | 1,400,000 | 1,400,000 | |||||
Repurchase of common stock for employee tax withholdings, shares | 252,000 | 264,000 | 197,000 | ||||
Repurchase of common stock for tax withholdings, value | $6.90 | $5.40 | $3.20 | ||||
Cash dividends declared per common share | $0.62 | $0.45 | |||||
Cash dividend | 21.3 | 15.2 | |||||
Stock warrants term | 10 years | ||||||
Stock warrants, exercise price | $26.68 | ||||||
Senior Subordinated Convertible Notes 2010 | |||||||
Stockholders' Equity Transactions | |||||||
Carrying amount of the equity component of convertible debt securities outstanding | 22.9 | 22.9 | 22.9 | ||||
Migration Of Comcast Current Residential Customer Accounts | |||||||
Stockholders' Equity Transactions | |||||||
Issuance of stock warrants | 1,900,000 | ||||||
Number of customer account migrated | 2,000,000 | ||||||
Migration Of Comcast Current Residential Customer Accounts | First 25 % of Stock Warrants | |||||||
Stockholders' Equity Transactions | |||||||
Vesting percentage of stock warrants | 25.00% | ||||||
Number of customer account migrated | 500,000 | ||||||
Number of stock warrants vesting | 500,000 | ||||||
Fair value of stock warrants vesting | 3.6 | ||||||
Migration Of Comcast Current Residential Customer Accounts | Second 25 % of Stock Warrants | |||||||
Stockholders' Equity Transactions | |||||||
Vesting date of stock warrants | 2015-01 | ||||||
Fair value of stock warrants vesting | 3.7 | ||||||
Migration Of Comcast Current Residential Customer Accounts | Third 25 % of Stock Warrants | |||||||
Stockholders' Equity Transactions | |||||||
Vesting percentage of stock warrants | 25.00% | ||||||
Number of customer account migrated | 5,500,000 | ||||||
Migration Of Comcast Current Residential Customer Accounts | Last 25 % of Stock Warrants | |||||||
Stockholders' Equity Transactions | |||||||
Vesting percentage of stock warrants | 25.00% | ||||||
Number of customer account migrated | 5,700,000 | ||||||
Total target of customer account migrations | 11,200,000 | ||||||
Migration Of Comcast Current Residential Customer Accounts | Last 25 % of Stock Warrants | Minimum | |||||||
Stockholders' Equity Transactions | |||||||
Number of customer account migrated | 5,500,000 | ||||||
Migration Of Comcast Acquired Additional Residential Customer Accounts | |||||||
Stockholders' Equity Transactions | |||||||
Issuance of stock warrants | 1,000,000 | ||||||
Comcast | |||||||
Stockholders' Equity Transactions | |||||||
Issuance of stock warrants | 2,900,000 | ||||||
Amount of unvested stock warrants that become vested upon a fundamental change of the Company | 50.00% | ||||||
Beneficial ownership required for potential cash settlement | 19.99% | ||||||
Client contract incentive related to stock warrants | 6.7 | ||||||
Amortization expense of client contract incentive related to stock warrants | $0.40 | ||||||
Class of stock warrants exercised | 0 | ||||||
Subsequent Event | |||||||
Stockholders' Equity Transactions | |||||||
Remaining number of shares available for repurchase | 9,000,000 | ||||||
Increase in the number of shares authorized for repurchase | 7,500,000 | ||||||
Number of shares authorized for repurchase under stock repurchase program | 42,500,000 | ||||||
Cash dividends declared per common share | $0.16 | ||||||
2015 Quarterly Cash Dividends | $0.18 | ||||||
Subsequent Event | Migration Of Comcast Current Residential Customer Accounts | Second 25 % of Stock Warrants | |||||||
Stockholders' Equity Transactions | |||||||
Vesting percentage of stock warrants | 25.00% |
Equity_Compensation_Plans_Stoc
Equity Compensation Plans - Stock Incentive Plan (Details Textual) (Stock Incentive Plan 2005) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Stock Incentive Plan 2005 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares authorized for issuance under incentive plane | 18.7 | 15.8 |
Number of shares counted for every share granted | 2 | |
Number of increased authorized shares under incentive plan | 2.9 | |
Stockholder approved shares available for issuance | 4.8 |
Equity_Compensation_Plans_Summ
Equity Compensation Plans - Summary of Unvested Restricted Common Stock Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Shares | |||
Shares, Unvested awards, beginning balance | 1,922 | ||
Shares, Awards granted | 1,295 | ||
Shares, Awards forfeited/cancelled | -151 | ||
Shares, Awards vested | -755 | ||
Shares, Unvested awards, ending balance | 2,311 | 1,922 | |
Weighted average grant date fair value | |||
Weighted-Average Grant Date Fair Value, Unvested awards, beginning balance | $18.57 | ||
Weighted-Average Grant Date Fair Value, Awards granted | $26.45 | $19.75 | $16.58 |
Weighted-Average Grant Date Fair Value, Awards forfeited/cancelled | $20.19 | ||
Weighted-Average Grant Date Fair Value, Awards vested | $18.79 | ||
Weighted-Average Grant Date Fair Value, Unvested awards, ending balance | $22.81 | $18.57 |
Equity_Compensation_Plans_Rest
Equity Compensation Plans - Restricted Stock (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-Average Grant Date Fair Value, Awards granted | $26.45 | $19.75 | $16.58 |
Market value of restricted stock shares vesting | $20.70 | $16.20 | $10.60 |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock vesting period | 3 years | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock vesting period | 4 years |
Equity_Compensation_Plans_1996
Equity Compensation Plans - 1996 Employee Stock Purchase Plan (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Purchase price of shares under the plan | $21.31 | $16.01 | $12.24 |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Purchase price of shares under the plan | $25.47 | $24.99 | $19.12 |
1996 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized for issue to employees under the employee stock purchase plan | 1,700,000 | ||
Purchase Price of shares as a percentage of market value | 85.00% | ||
Issuance of common stock pursuant to employee stock purchase plan, shares | 61,592 | 68,845 | 93,352 |
Value of stock purchases made pursuant to employee stock purchase plan | $1,400 | $1,400 | $1,400 |
Remaining number of shares eligible for purchase under employee stock purchase plan | 499,549 |
Equity_Compensation_Plans_Stoc1
Equity Compensation Plans - Stock-Based Compensation Expense (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock-based compensation expense | $16.70 | $14.80 | $13.40 |
Total compensation cost related to unvested awards not yet recognized | 37.9 | ||
Stock based compensation expense period | 2 years 6 months | ||
Deferred income tax benefit related to stock-based compensation expense | 5 | 4.6 | 4.6 |
Income tax benefit realized for the tax deductions from stock-based compensation | $6.50 | $5.40 | $4 |
Unaudited_Quarterly_Financial_2
Unaudited Quarterly Financial Data - Quarterly Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Quarterly Financial Information | |||||||||||||||||||
Total revenues | $193,697 | $185,003 | $184,558 | $188,028 | $194,549 | $186,180 | $186,107 | $180,632 | $751,286 | $747,468 | $756,866 | ||||||||
Total cost of revenues (exclusive of depreciation) | 99,087 | 94,470 | 93,682 | 102,104 | 94,155 | 94,898 | 94,758 | 93,354 | 389,343 | 377,165 | 383,816 | ||||||||
Operating income | 19,125 | [1] | 13,831 | [1] | 21,820 | [1] | 20,914 | [1] | 16,435 | [2] | 20,553 | [2] | 21,681 | [2] | 18,035 | [2] | 75,690 | 76,704 | 96,574 |
Income before income taxes | 16,715 | [1] | 10,064 | [1] | 17,741 | [1] | 17,002 | [1] | 12,482 | [2] | 16,631 | [2] | 18,862 | [2] | 13,544 | [2] | 61,522 | 61,519 | 77,224 |
Income tax provision | -4,083 | [3] | -4,831 | [3] | -8,338 | [3] | -7,311 | [3] | -3,401 | [3] | -1,331 | [3] | -6,790 | [3] | 1,354 | [3] | -24,563 | -10,168 | -28,345 |
Net income | $12,632 | [1],[3] | $5,233 | [1],[3] | $9,403 | [1],[3] | $9,691 | [1],[3] | $9,081 | [2],[3] | $15,300 | [2],[3] | $12,072 | [2],[3] | $14,898 | [2],[3] | |||
Basic earnings per common share | $0.39 | [1],[3] | $0.16 | [1],[3] | $0.29 | [1],[3] | $0.30 | [1],[3] | $0.28 | [2],[3] | $0.48 | [2],[3] | $0.38 | [2],[3] | $0.46 | [2],[3] | $1.14 | $1.60 | $1.52 |
Diluted earnings per common share | $0.38 | [1],[3] | $0.15 | [1],[3] | $0.28 | [1],[3] | $0.28 | [1],[3] | $0.27 | [2],[3] | $0.47 | [2],[3] | $0.37 | [2],[3] | $0.46 | [2],[3] | $1.10 | $1.56 | $1.51 |
[1] | During the first, third, and fourth quarters of 2014 we incurred restructuring expenses of $1.2 million, $7.8 million, and $4.9 million, respectively, or $0.02, $0.12, and $0.11 per diluted share (see Note 6). | ||||||||||||||||||
[2] | During the first and fourth quarters of 2013 we incurred restructuring expenses of $0.9 and $11.5 million, respectively, or $0.03 and $0.25 per diluted share (see Note 6). | ||||||||||||||||||
[3] | Fluctuations in our effective income tax rate between quarters generally relates to the accounting for discrete income tax items in any given quarter, and revisions of estimates for certain income tax components during the year. b"For 2014: Our effective income tax rates for the first, second, third, and fourth quarters were 43%, 47%, 48%, and 24%, respectively. The low fourth quarter rate can be mainly attributed to full year impact of the 2014 R&D tax credits, as the legislation was not passed until December 2014.b"For 2013: Our effective income tax rates for the first, second, third, and fourth quarters of 2013 were (10)%, 36%, 8%, and 27%, respectively. The negative rate in the first quarter of 2013 reflects the benefit of approximately $6 million of R&D tax credits that we generated in 2012, but were unable to include in the determination of our 2012 effective tax rate as the legislation was not signed into law until 2013. The lower income tax rates for the third and fourth quarter were mainly driven by incremental R&D income tax credits claimed for development activities from previous years and by the reduction of certain tax allowances related mainly to foreign operations, offset by increases in tax reserves for uncertainties, which provided a benefit of approximately $6 million and $2 million, respectively. |
Unaudited_Quarterly_Financial_3
Unaudited Quarterly Financial Data (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Unaudited Quarterly Financial Data (Textual) [Abstract] | |||||||||||
Restructuring and reorganization charges recorded during the year | $4,900,000 | $7,800,000 | $1,200,000 | $11,500,000 | $900,000 | $13,969,000 | $12,405,000 | $2,469,000 | |||
Impact of Restructuring expenses on EPS | $0.11 | $0.12 | $0.02 | $0.25 | $0.03 | ||||||
Effective income tax rate | 24.00% | 48.00% | 47.00% | 43.00% | 27.00% | 8.00% | 36.00% | -10.00% | |||
Tax credits from R & D and from reduction of certain tax allowances related to foreign operations | $2,000,000 | $6,000,000 | $6,000,000 |