Pegasystems (PEGA) 10-K 24 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Feb. 10, 2017	Jun. 30, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	PEGA
Entity Registrant Name	PEGASYSTEMS INC
Entity Central Index Key	1,013,857
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		76,643,096
Entity Public Float			$ 965

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 70,594	$ 93,026
Marketable securities	63,167	126,052
Total cash, cash equivalents, and marketable securities	133,761	219,078
Trade accounts receivable, net of allowance of $4,126 and $4,631	265,028	211,846
Income taxes receivable	14,155	4,770
Other current assets	12,188	10,791
Total current assets	425,132	446,485
Property and equipment, net	38,281	31,319
Deferred income taxes	69,898	65,730
Long-term other assets	3,990	4,030
Intangible assets, net	44,191	33,418
Goodwill	73,164	46,776
Total assets	654,656	627,758
Current liabilities:
Accounts payable	14,414	12,675
Accrued expenses	36,751	42,768
Accrued compensation and related expenses	60,660	55,872
Deferred revenue	175,647	155,873
Total current liabilities	287,472	267,188
Income taxes payable	4,263	5,618
Long-term deferred revenue	10,989	15,805
Other long-term liabilities	16,043	16,288
Total liabilities	318,767	304,899
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, $0.01 par value, 1,000 shares authorized; no shares issued and outstanding
Common stock, $0.01 par value, 200,000 shares authorized; 76,591 shares and 76,488 shares issued and outstanding	766	765
Additional paid-in capital	143,903	145,418
Retained earnings	198,315	180,183
Accumulated other comprehensive loss:
Net unrealized loss on available-for-sale marketable securities, net of tax	(169)	(150)
Foreign currency translation adjustments	(6,926)	(3,357)
Total stockholders' equity	335,889	322,859
Total liabilities and stockholders' equity	$ 654,656	$ 627,758

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Allowance for sales credit memos	$ 4,126	$ 4,631
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	76,591,000	76,488,000
Common stock, shares outstanding	76,591,000	76,488,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue:
Software license	$ 279,995	$ 275,588	$ 232,336
Maintenance	220,336	202,802	186,239
Services	249,935	204,305	171,429
Total revenue	750,266	682,695	590,004
Cost of revenue:
Software license	4,943	4,125	4,959
Maintenance	25,505	21,903	20,014
Services	208,808	187,418	160,121
Total cost of revenue	239,256	213,446	185,094
Gross profit	511,010	469,249	404,910
Operating expenses:
Selling and marketing	278,849	241,387	206,658
Research and development	145,548	126,374	108,591
General and administrative	45,951	36,738	37,442
Acquisition-related	2,616	89	488
Restructuring	287		192
Total operating expenses	473,251	404,588	353,371
Income from operations	37,759	64,661	51,539
Foreign currency transaction gain (loss)	2,247	(4,168)	(3,769)
Interest income, net	776	1,056	683
Other expense, net	(5,580)	(1,044)	(459)
Income before provision for income taxes	35,202	60,505	47,994
Provision for income taxes	8,216	24,183	14,739
Net income	$ 26,986	$ 36,322	$ 33,255
Earnings per share:
Basic	$ 0.35	$ 0.47	$ 0.44
Diluted	$ 0.34	$ 0.46	$ 0.42
Weighted-average number of common shares outstanding:
Basic	76,343	76,507	76,327
Diluted	79,732	79,043	78,531

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income	$ 26,986	$ 36,322	$ 33,255
Other comprehensive loss, net:
Unrealized loss on available-for-sale marketable securities, net of tax	(19)	(85)	(142)
Foreign currency translation adjustments	(3,569)	(2,810)	(4,103)
Total other comprehensive loss, net	(3,588)	(2,895)	(4,245)
Comprehensive income	$ 23,398	$ 33,427	$ 29,010

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income
Balance (in shares) at Dec. 31, 2013		76,324
Balance at Dec. 31, 2013	$ 271,788	$ 764	$ 139,565	$ 127,826	$ 3,633
Repurchase of common stock (in shares)		(770)
Repurchase of common stock	(15,559)	$ (8)	(15,551)
Issuance of common stock for share-based compensation plans (in shares)		742
Issuance of common stock for share-based compensation plans	(5,695)	$ 8	(5,703)
Issuance of stock under Employee Stock Purchase Plan (in shares)		32
Issuance of stock under Employee Stock Purchase Plan	568		568
Issuance of common stock to board members for board services (in shares)		29
Stock-based compensation expense	19,205		19,205
Tax benefit from exercise or vesting of equity awards, net of deferred tax asset deficiencies	3,411		3,411
Cash dividends declared	(8,023)			(8,023)
Other comprehensive loss	(4,245)				(4,245)
Net income	33,255			33,255
Balance (in shares) at Dec. 31, 2014		76,357
Balance at Dec. 31, 2014	294,705	$ 764	141,495	153,058	(612)
Repurchase of common stock (in shares)		(952)
Repurchase of common stock	(22,750)	$ (10)	(22,740)
Issuance of common stock for share-based compensation plans (in shares)		1,028
Issuance of common stock for share-based compensation plans	(9,190)	$ 11	(9,201)
Issuance of stock under Employee Stock Purchase Plan (in shares)		24
Issuance of stock under Employee Stock Purchase Plan	550		550
Issuance of common stock to board members for board services (in shares)		31
Stock-based compensation expense	30,078		30,078
Tax benefit from exercise or vesting of equity awards, net of deferred tax asset deficiencies	5,236		5,236
Cash dividends declared	(9,197)			(9,197)
Other comprehensive loss	(2,895)				(2,895)
Net income	$ 36,322			36,322
Balance (in shares) at Dec. 31, 2015	76,488	76,488
Balance at Dec. 31, 2015	$ 322,859	$ 765	145,418	180,183	(3,507)
Repurchase of common stock (in shares)		(1,078)
Repurchase of common stock	(27,028)	$ (11)	(27,017)
Issuance of common stock for share-based compensation plans (in shares)		1,134
Issuance of common stock for share-based compensation plans	(15,856)	$ 12	(15,868)
Issuance of stock under Employee Stock Purchase Plan (in shares)		20
Issuance of stock under Employee Stock Purchase Plan	562		562
Issuance of common stock to board members for board services (in shares)		27
Stock-based compensation expense	40,808		40,808
Cash dividends declared	(9,175)			(9,175)
Other comprehensive loss	(3,588)				(3,588)
Net income	$ 26,986			26,986
Balance (in shares) at Dec. 31, 2016	76,591	76,591
Balance at Dec. 31, 2016	$ 335,889	$ 766	$ 143,903	198,315	$ (7,095)
Cumulative-effect adjustment from adoption of ASU 2016-09	$ 321			$ 321

CONSOLIDATED STATEMENTS OF STO7

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Tax benefit from exercise or vesting of equity awards, deferred tax asset deficiencies	$ 105	$ 77
Cash dividends declared, per share	$ 0.12	$ 0.105

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Operating activities:
Net income	$ 26,986	$ 36,322	$ 33,255
Adjustment to reconcile net income to cash provided by operating activities:
Deferred income taxes	(5,810)	(2,099)	(13,896)
Depreciation and amortization	24,137	23,093	23,352
Amortization of investments	1,862	2,238	1,916
Stock-based compensation expense	40,821	30,054	19,205
Foreign currency transaction (gain) loss	(2,247)	4,168	3,769
Other non-cash	(1,382)	822	(747)
Change in operating assets and liabilities:
Trade accounts receivable	(56,730)	(62,235)	6,209
Income taxes receivable and other current assets	(10,818)	3,223	2,776
Accounts payable and accrued expenses	1,531	16,572	13,356
Deferred revenue	21,271	17,668	11,173
Other long-term assets and liabilities	253	(2,023)	2,908
Cash provided by operating activities	39,874	67,803	103,276
Investing activities:
Purchases of marketable securities	(23,969)	(75,702)	(55,520)
Proceeds from maturities and called marketable securities	22,788	42,026	33,244
Sales of marketable securities	62,210	1,915
Payments for acquisitions, net of cash acquired	(49,113)	(1,671)	(3,918)
Investment in property and equipment	(19,088)	(11,020)	(11,463)
Cash used in investing activities	(7,172)	(44,452)	(37,657)
Financing activities:
Issuance of common stock for share-based compensation plans	889	1,136	1,001
Dividend payments to shareholders	(9,174)	(9,194)	(6,874)
Common stock repurchases for tax withholdings for net settlement of equity awards	(16,183)	(9,776)	(6,128)
Common stock repurchases under share repurchase programs	(27,248)	(22,825)	(15,418)
Cash used in financing activities	(51,716)	(40,659)	(27,419)
Effect of exchange rate on cash and cash equivalents	(3,418)	(4,251)	(3,846)
Net (decrease) increase in cash and cash equivalents	(22,432)	(21,559)	34,354
Cash and cash equivalents, beginning of year	93,026	114,585	80,231
Cash and cash equivalents, end of year	70,594	93,026	114,585
Supplemental disclosures:
Income taxes paid	28,844	30,215	14,722
Non-cash investing and financing activity:
Dividends payable	$ 2,298	$ 2,297	$ 2,294

BASIS OF PRESENTATION

BASIS OF PRESENTATION	12 Months Ended
	Dec. 31, 2016
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION (a) Business The Company develops, markets, licenses, and supports software applications for marketing, sales automation, customer service, and operations, in addition to the Pega Platform for clients that wish to build and extend their own applications. The Company provides implementation, consulting, training, technical support, and hosting services to facilitate the use of its software. (b) Management estimates and reporting The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S.”) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates. Accounts with reported amounts based on significant estimates and judgments include revenue, deferred revenue, deferred income taxes, income taxes payable, intangible assets, and goodwill. (c) Principles of consolidation The consolidated financial statements include Pegasystems Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
SIGNIFICANT ACCOUNTING POLICIES	2. SIGNIFICANT ACCOUNTING POLICIES (a) Revenue recognition The Company’s revenue is derived primarily from software licenses, maintenance fees related to the Company’s software licenses, and consulting services. The Company’s license arrangements, whether involving a perpetual license or a term license, generally also contain multiple elements, including consulting services, training, and software maintenance services. Software revenue recognition requires judgment, including whether a software arrangement includes multiple elements, and if so, whether vendor-specific objective evidence (“VSOE”) of fair value exists for those elements. The amount of arrangement consideration allocated to undelivered elements is based on the VSOE of fair value for those elements and recognized as those elements are delivered. Any remaining portion of the total arrangement fee is allocated to the software license—the first delivered element. Revenue is recognized for each element when all of the revenue recognition criteria have been met. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. Changes in the mix of the elements in a software arrangement, the ability to identify VSOE for those elements, the fair value of the respective elements, and changes to a product’s estimated life cycle could materially impact the amount of earned and unearned revenue. Before the Company can recognize revenue, the following four basic criteria must be met: • Persuasive evidence of an arrangement • Delivery of product and services • Fee is fixed or determinable • Collection of fee is probable Software license revenues Perpetual software license fees are recognized as revenue when the software is delivered, any acceptance required by the contract that is not perfunctory is obtained, no significant obligations or contingencies exist related to the software, all other undelivered elements in a multiple element arrangement possess VSOE, and all other revenue recognition criteria are met. Term software license fees are usually payable on a monthly, quarterly, or annual basis under license agreements that typically have a three to five-year term and may be renewed for additional terms at the client’s option. The Company recognizes term license revenue over the term of the agreement as payments become due or earlier if prepaid, provided all other criteria for revenue recognition have been met. Maintenance revenues First-year maintenance typically is sold with the related software license and renewed on an annual basis thereafter. Maintenance revenue is deferred and recognized ratably over the term of the support period, which is generally one year and subject to annual renewals. Perpetual software maintenance obligations are based on separately stated renewal rates in the arrangement that are substantive and therefore represent VSOE of fair value. Term license arrangements include separately stated maintenance fees and the Company uses stand-alone sales to determine VSOE of fair value. Services revenues The Company’s services revenue is comprised of fees for consulting services including software implementation, training, reimbursable expenses, and for sales of its Pega Cloud as-a-platform Revenue from training services and consulting services under time and materials contracts is recognized as services are performed. The Company has VSOE of fair value for its training services and consulting services under time and materials contracts in the Americas, Europe, and certain regions of Asia. Consulting services may sometimes be provided on a fixed-price basis. The Company does not have VSOE of fair value for fixed-price services or time and materials services in certain geographical regions. When these services are part of a multiple element arrangement, and the services are not essential to the functionality of the software, and when services, including maintenance, are the only undelivered element, the Company recognizes the revenue from the total arrangement ratably over the longer of the software maintenance period or the service period. Revenue from fixed-price services that are not bundled with a software license is generally recognized ratably over the service period, which is typically less than four months. Revenue from stand-alone sales of the Pega Cloud Dev/Test environment is recognized as services are performed because the Company has VSOE of fair value. Revenue from stand-alone sales of the Pega Cloud Production environment is recognized ratably over the term of the service. When implementation services are sold together with the Company’s Pega Cloud offering and these services have stand-alone value to the client, the Company accounts for these services separately from this offering. Stand-alone value is established through the client’s ability to buy these services from many trained partner system integrators and from transactions sold independently from the sale of Pega Cloud. Since these multiple-element arrangements are not software license sales, the Company applies a selling price hierarchy to determine the fair value of each element in the arrangement. Under the selling price hierarchy, each element’s fair value is determined based on its VSOE, if available. If VSOE does not exist, third-party evidence of fair value (“TPE”) will be considered, and estimated selling price (“ESP”) will be used if neither VSOE nor TPE is available. The Company generally does not have VSOE of its Pega Cloud offering and is not able to determine TPE as its sales strategy is customized to the needs of its clients and the Company’s products and services are dissimilar to comparable products or services in the marketplace. In determining ESP, the Company applies significant judgment as it weighs a variety of factors, based on the facts and circumstances of the arrangement. The Company typically arrives at an ESP for a service without VSOE or TPE by considering company-specific factors such as geographies, competitive landscape, and pricing practices used to establish bundled pricing and discounting. Deferred revenue Deferred software license revenue typically results from client billings for which all of the criteria to recognize revenue have not been met. Deferred maintenance revenue represents software license updates and product support contracts that are typically billed in advance and are recognized ratably over the support periods. Deferred services revenue represents advanced billings for consulting, hosting, and training services that are recognized as the services are performed. (b) Fair value of financial instruments The principal financial instruments held by the Company consist of cash equivalents, marketable securities, derivative instruments, accounts receivable, and accounts payable, which are measured at fair value. See Note 3 “Marketable Securities”, Note 4 “Derivative Instruments”, and Note 5 “Fair Value Measurements” for further discussion of financial instruments that are carried at fair value on a recurring basis. (c) Derivative instruments The Company uses foreign currency forward contracts (“forward contracts”) to manage its exposures to changes in foreign currency exchange rates associated with its foreign currency denominated accounts receivable, intercompany receivable and payables, and cash. See Note 4 “Derivative Instruments” for further discussion. (d) Property and equipment Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are three years for computer equipment and five years for furniture and fixtures. Leasehold improvements are amortized over the lesser of the term of the lease or the useful life of the asset. Repairs and maintenance costs are expensed as incurred. (e) Internal-use The Company capitalizes and amortizes certain direct costs associated with computer software developed or purchased for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. The Company amortizes capitalized software costs generally over three to five years commencing on the date the software is placed into service. During the fourth quarter of 2016, the Company placed $11.3 million of costs for computer software developed for internal use into service, of which $1.1 million was capitalized in 2015 and $10.2 million was capitalized in 2016. During 2014, the Company did not capitalize any costs for computer software developed for internal use. (f) Goodwill Goodwill represents the residual purchase price paid in a business combination after the fair value of all identified assets and liabilities have been recorded. Goodwill is not amortized. The Company operates as a single reporting unit. The Company performed its qualitative assessment as of November 30, 2016, 2015, and 2014, and concluded it was not more likely than not that the fair value of its reporting unit was less than its carrying value. (g) Intangible and long-lived assets All of the Company’s intangible assets are amortized using the straight-line method over their estimated useful life. The Company evaluates its long-lived tangible and intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Impairment is assessed by comparing the undiscounted cash flows expected to be generated by the intangible asset to its carrying value. If impairment exists, the Company calculates the impairment by comparing the carrying value of the intangible asset to its fair value as determined by discounted expected cash flows. The Company did not record any impairments in 2016, 2015, or 2014. (h) Business combinations The Company uses its best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related (i) Research and development and software development costs Research and development costs are expensed as incurred. Capitalization of computer software developed for resale begins upon the establishment of technological feasibility, generally demonstrated by a working model or an operative version of the computer software product. Such costs have not been material to date as technological feasibility is established within a short time frame from the software’s general availability and, as a result, no costs were capitalized in 2016, 2015, or 2014. (j) Stock-based compensation The Company recognizes stock-based compensation expense associated with equity awards based on the fair value of these awards at the grant date. Stock-based compensation is recognized over the requisite service period, which is generally the vesting period of the equity award, and is adjusted each period for anticipated forfeitures. See Note 14 “Stock-based Compensation” for discussion of the Company’s key assumptions included in determining the fair value of its equity awards at the grant date. (k) Acquisition-related expenses Acquisition-related costs are expensed as incurred and include direct and incremental costs associated with an impending or completed acquisition. During 2016, 2015, and 2014, $2.6 million, $0.1 million, and $0.5 million, respectively, of acquisition-related costs were primarily professional fees associated with the Company’s acquisition of OpenSpan, Inc. (“OpenSpan”) and the acquisitions completed in 2014. (l) Foreign currency translation The translation of assets and liabilities for the majority of the Company’s foreign subsidiaries are made at period-end non-monetary (m) Accounting for income taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company regularly assesses the need for a valuation allowance against its deferred tax assets. Future realization of the Company’s deferred tax assets ultimately depends on the existence of sufficient taxable income within the available carryback or carryforward periods. Sources of taxable income include taxable income in prior carryback years, future reversals of existing taxable temporary differences, tax planning strategies, and future taxable income. The Company records a valuation allowance to reduce its deferred tax assets to an amount it believes is more-likely-than-not with-and-without The Company assesses its income tax positions and records tax benefits based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more-likely-than-not more-likely-than-not non-current As a global company, the Company uses significant judgment to calculate and provide for income taxes in each of the tax jurisdictions in which it operates. In the ordinary course of the Company’s business, there are transactions and calculations undertaken whose ultimate tax outcome cannot be certain. Some of these uncertainties arise as a consequence of transfer pricing for transactions with the Company’s subsidiaries and nexus and tax credit estimates. In addition, the calculation of acquired tax attributes and the associated limitations are complex. See Note 15 “Income Taxes” for further information. The Company estimates its exposure to unfavorable outcomes related to these uncertainties and estimates the probability of such outcomes. (n) Advertising expense Advertising costs are expensed as incurred. Advertising costs were $8.9 million, $9.8 million, $1.4 million during the years ended December 31, 2016, 2015, and 2014, respectively. (o) New accounting pronouncements Measurement of Credit Losses on Financial Instruments: No. 2016-13, available-for-sale Improvements to Employee Share-Based Payment Accounting: No. 2016-09, 2016-09,”) The Company elected to early adopt ASU 2016-09 2016-09 2016-09 The Company elected to continue to estimate forfeitures over the service period of the award, rather than as they occur, and will continue to present taxes paid in connection with shares withheld to meet statutory tax withholdings requirements for net settlement of equity awards as a financing activity in the statement of cash flows. These aspects of ASU 2016-09 Adoption of the new standard also resulted in adjustments to our unaudited selected quarterly data previously reported for fiscal year 2016 as follows: Three Months Ended (Dollars in thousands) March 31, 2016 June 30, 2016 September 30, 2016 As As As As As As Unaudited condensed consolidated statements of operations data: Income before provision for income taxes $ 13,493 $ 13,493 $ 5,498 $ 5,498 $ 5,515 $ 5,515 Provision for income taxes $ 4,488 $ 3,093 $ 1,851 $ 962 $ 3,097 $ 2,214 Net income $ 9,005 $ 10,400 $ 3,647 $ 4,536 $ 2,418 $ 3,301 Effective tax rate 33.3 % 22.9 % 33.7 % 17.5 % 56.2 % 40.1 % Earnings per share: Basic $ 0.12 $ 0.14 $ 0.05 $ 0.06 $ 0.03 $ 0.04 Diluted $ 0.11 $ 0.13 $ 0.05 $ 0.06 $ 0.03 $ 0.04 Weighted-average number of common shares outstanding: Diluted 78,878 79,235 78,969 79,422 79,082 79,548 Three Months Ended Six Months Ended Nine Months Ended (in thousands) March 31, 2016 June 30, 2016 September 30, 2016 As As As As As As Unaudited condensed consolidated statements of cash flows data: Net cash provided by operating activities $ 8,642 $ 10,040 $ 9,299 $ 11,569 $ 17,396 $ 20,556 Net cash used in financing activities $ (18,424 ) $ (19,822 ) $ (29,396 ) $ (31,666 ) $ (39,871 ) $ (43,031 ) Leases: No. 2016-02, right-of-use right-of-use Balance Sheet Classification of Deferred Taxes: No. 2015-17, Revenue from Contracts with Customers: No. 2014-09, No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12 The Company has elected the full retrospective adoption model, effective January 1, 2018. Quarterly results in the 2018 fiscal year and comparative prior periods will be compliant with ASC 606, with the first Annual Report on Form 10-K The Company is still in the process of quantifying the implications of the adoption of ASC 606, however the Company expects the following impacts: • Currently, the Company recognizes revenue from term licenses and perpetual licenses with extended payment terms over the term of the agreement as payments become due or earlier if prepaid, provided all other criteria for revenue recognition have been met, and any corresponding maintenance over the term of the agreement. The adoption of ASC 606 will result in revenue for performance obligations recognized as they are satisfied therefore, revenue from the term license performance obligation is expected to be recognized upon delivery and revenue from the maintenance performance obligation is expected to be recognized on a straight-line basis over the contractual term. Due to the revenue from term licenses and perpetual licenses with extended payment terms being recognized prior to amounts being billed to the customer, we expect to recognize a net contract asset on the balance sheet. • Currently, the Company allocates revenue to licenses under the residual method when it has VSOE for the remaining undelivered elements which allocates any future credits or significant discounts entirely to the license. The adoption of ASC 606 will result in the future credits, significant discounts, and material rights under ASC 606, being allocated to all performance obligations based upon their relative selling price. Under ASC 606, additional license revenue from the reallocation of such arrangement considerations will be recognized when control is transferred to the customer. • Currently, the Company does not have VSOE for fixed price services, time and materials services in certain geographical areas, and unspecified future products, which results in revenue being deferred in such instances until such time as VSOE exists for all undelivered elements or recognized ratably over the longest performance period. The adoption of ASC 606 eliminates the requirement for VSOE and replaces it with the concept of a stand-alone selling price. Once the transaction price is allocated to each of the performance obligations the Company can recognize revenue as the performance obligations are delivered, either at a point in time or over time. Under ASC 606, license revenue will be recognized when control is transferred to the customer. • Sales commissions and other third party acquisition costs resulting directly from securing contracts with customers are currently expensed when incurred. ASC 606 will require these costs of acquiring contracts to be recognized as an asset when incurred and to be expensed over the associated contract term. As a practical expedient, if the term of the contract is one year or less, the Company will expense the costs resulting directly from securing the contracts with customers. We expect this to impact our multi-year cloud offerings and perpetual licenses with additional rights of use that extend beyond one year. • ASC 606 provides additional accounting guidance for contract modifications whereby changes must be accounted for either as a retrospective change (creating either a catch up or deferral of past revenues), prospectively with a reallocation of revenues amongst identified performance obligations, or prospectively as separate contracts which will not require any reallocation. This may result in a difference in the timing of the recognition of revenue as compared to how current contract modifications are recognized. • There will be a corresponding effect on tax liabilities in relation to all of the above impacts. The Company is continuing its analysis of the expected impacts of the adoption of ASC 606.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	12 Months Ended
	Dec. 31, 2016
MARKETABLE SECURITIES	3. MARKETABLE SECURITIES (in thousands) December 31, 2016 Amortized Unrealized Unrealized Fair Value Marketable securities: Municipal bonds $ 36,746 $ — $ (139 ) $ 36,607 Corporate bonds 26,610 1 (51 ) 26,560 Marketable securities $ 63,356 $ 1 $ (190 ) $ 63,167 (in thousands) December 31, 2015 Amortized Unrealized Unrealized Fair Value Marketable securities: Municipal bonds $ 57,394 $ 7 $ (66 ) $ 57,335 Corporate bonds 66,960 2 (147 ) 66,815 Certificates of deposit 1,903 — (1 ) 1,902 Marketable securities $ 126,257 $ 9 $ (214 ) $ 126,052 The Company considers debt securities with maturities of three months or less from the purchase date to be cash equivalents. Interest is recorded when earned. All of the Company’s investments are classified as available-for-sale As of December 31, 2016, remaining maturities of marketable debt securities ranged from March 2017 to August 2019, with a weighted-average remaining maturity of approximately 14 months.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	12 Months Ended
	Dec. 31, 2016
DERIVATIVE INSTRUMENTS	4. DERIVATIVE INSTRUMENTS The Company uses forward contracts to hedge its exposure to fluctuations in foreign currency exchange rates associated with its foreign currency denominated cash, accounts receivable, and intercompany receivables and payables held by its U.S. parent company and U.K. subsidiary. The Company is primarily exposed to foreign currency exchange rate fluctuations in the U.S. dollar, the Euro, and the Australian dollar relative to the British pound and the Euro relative to the U.S. dollar. At the end of June 2016, the U.K. held a referendum in which U.K. voters approved an exit from the European Union, commonly referred to as “Brexit”. The announcement of Brexit resulted in a sharp decline in the value of the British pound, as compared to the U.S. dollar and other currencies. This decline primarily resulted in foreign currency transaction gains from the remeasurement of foreign currency denominated cash and accounts receivable held by the Company’s U.K. subsidiary with corresponding losses on the Company’s forward contracts included in other expense, net. The forward contracts are not designated as hedging instruments. As a result, the Company records the fair value of these contracts at the end of each reporting period in the accompanying consolidated balance sheets as other current assets for unrealized gains and accrued expenses for unrealized losses, with any fluctuations in the value of these contracts recognized in other expense, net, in the accompanying consolidated statements of operations. The cash flows related to these forward contracts are classified as operating activities in the accompanying consolidated statements of cash flows. The Company does not enter into any forward contracts for trading or speculative purposes. As of December 31, 2016 and 2015, the total notional amount of the Company’s outstanding forward contracts was $128.4 million and $32.3 million, respectively. The Company did not have any forward contracts outstanding as of December 31, 2014. The fair value of the Company’s outstanding forward contracts was as follows: (in thousands) December 31, 2016 December 31, 2015 Recorded In: Fair Value Recorded In: Fair Value Asset Derivatives Foreign currency forward contracts Other current assets $ 628 Other current assets $ 48 Liability Derivatives Foreign currency forward contracts Accrued expenses $ 883 Accrued expenses $ 1,052 The Company had forward contracts outstanding with total notional values as follows: As of December 31, Currency (in thousands) 2016 2015 Euro € 29,820 € 14,900 British pound £ 6,440 £ — Australian dollar A$ 22,010 A$ 9,100 United States dollar $ 73,125 $ 9,400 Change in Fair Value in USD Year Ended December 31, (in thousands) 2016 2015 2014 Loss from the change in the fair value of forward contracts included in other expense, net $ (5,643 ) $ (1,047 ) $ (532 ) Foreign currency transaction gains (losses) from the remeasurement of foreign currency assets and liabilities 2,247 (4,168 ) (3,769 )

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2016
FAIR VALUE MEASUREMENTS	5. FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company records its marketable securities and forward contracts at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability. As a basis for classifying the fair value measurements, a three-tier fair value hierarchy, which classifies the fair value measurements based on the inputs used in measuring fair value, was established as follows: (Level 1) observable inputs such as quoted prices in active markets for identical assets or liabilities; (Level 2) significant other inputs that are observable either directly or indirectly; and (Level 3) significant unobservable inputs on which there is little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company’s money market funds are classified within Level 1 of the fair value hierarchy. The Company’s marketable securities classified within Level 2 of the fair value hierarchy are valued based on a market approach using quoted prices, when available, or matrix pricing compiled by third party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. The Company’s foreign currency forward contracts, which are all classified within Level 2 of the fair value hierarchy, are valued based on the notional amounts and rates under the contracts and observable market inputs such as currency exchange rates and credit risk. If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. There were no transfers of investments between Level 1 and Level 2 during the years ended December 31, 2016 and 2015. The Company’s assets and liabilities measured at fair value on a recurring basis consisted of the followings: (in thousands) December 31, Quoted Prices Significant Fair Value Assets: Money market funds $ 458 $ 458 $ — Marketable securities: Municipal bonds $ 36,607 $ — $ 36,607 Corporate bonds 26,560 — 26,560 Certificates of deposit — — — Total marketable securities $ 63,167 $ — $ 63,167 Foreign currency forward contracts $ 628 $ — $ 628 Fair Value Liabilities: Foreign currency forward contracts $ 883 $ — $ 883 (in thousands) December 31, Quoted Prices Significant Fair Value Assets: Money market funds $ 573 $ 573 $ — Marketable securities: Municipal bonds $ 57,335 $ — $ 57,335 Corporate bonds 66,815 — 66,815 Certificates of deposit 1,902 — 1,902 Total marketable securities $ 126,052 $ — $ 126,052 Foreign currency forward contracts $ 48 $ — $ 48 Fair Value Liabilities: Foreign currency forward contracts $ 1,052 $ — $ 1,052 For certain other financial instruments, including accounts receivable and accounts payable, the carrying value approximates their fair value due to the relatively short maturity of these items. Assets Measured at Fair Value on a Nonrecurring Basis Assets recorded at fair value on a nonrecurring basis, such as property and equipment, and intangible assets are recognized at fair value when they are impaired. During 2016, 2015, and 2014, the Company did not recognize any impairments on its assets measured at fair value on a nonrecurring basis.

TRADE ACCOUNTS RECEIVABLE, NET

TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE	12 Months Ended
	Dec. 31, 2016
TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE	6. TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE Unbilled trade accounts receivable primarily relate to services earned under time and materials arrangements and to license, maintenance, and cloud arrangements that have commenced or been delivered in excess of scheduled invoicing. December 31, (in thousands) 2016 2015 Trade accounts receivable $ 234,473 $ 190,820 Unbilled accounts receivable 34,681 25,657 Total accounts receivable 269,154 216,477 Allowance for sales credit memos (4,126 ) (4,631 ) $ 265,028 $ 211,846 The Company records an allowance for estimates of potential sales credit memos when the related revenue is recorded and reviews this allowance periodically. The following reflects the activity of the allowance for sales credit memos: Year Ended December 31, (in thousands) 2016 2015 2014 Balance at beginning of year $ 4,631 $ 1,540 $ 1,997 Provision for credit memos 3,290 8,005 2,164 Credit memos issued (3,795 ) (4,914 ) (2,621 ) $ 4,126 $ 4,631 $ 1,540

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
PROPERTY AND EQUIPMENT	7. PROPERTY AND EQUIPMENT December 31, (in thousands) 2016 2015 Leasehold improvements $ 32,852 $ 29,501 Computer equipment 21,522 18,369 Furniture and fixtures 6,127 5,211 Computer software purchased 6,083 5,847 Computer software developed for internal use 12,069 721 Fixed assets in progress 772 2,173 79,425 61,822 Less: accumulated depreciation and amortization (41,144 ) (30,503 ) Property and equipment, net $ 38,281 $ 31,319 Depreciation expense was approximately $11.2 million, $10.6 million, and $9.3 million, for the years ended December 31, 2016, 2015, and 2014, respectively.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2016
ACQUISITIONS	8. ACQUISITIONS Acquisition completed in 2016: On April 11, 2016, the Company acquired OpenSpan, Inc. (“OpenSpan”), a privately held software provider of robotic process automation and workforce analytics software for $48.8 million in cash, net of $1.8 million in cash acquired. As of December 31, 2016, $7.4 million of the cash consideration remains in escrow and will remain for up to an 18-month During 2016, the Company incurred $2.6 million of direct and incremental expenses that were primarily legal and advisory fees and due diligence costs to affect the acquisition. In allocating the total purchase consideration based on estimated fair values, the Company recorded $26.7 million of goodwill, which is nondeductible for income tax purposes, and $24.3 million of intangible assets with a weighted-average amortization period of 9.7 years. Acquisitions completed in 2014: The Company completed three acquisitions during the year ended December 31, 2014, which were determined to be immaterial, both individually and in the aggregate, for $6.3 million in cash consideration, inclusive of $2.1 million in cash acquired, and $1.1 million in additional cash consideration which was paid in 2015. During 2016 and 2015, the Company also paid $0.3 million and $0.5 million, respectively, in additional cash consideration to the selling shareholders of another one of the three companies acquired in 2014, based on the achievement of certain performance milestones. The final cash payment of $0.3 million was made in January 2017 to the same selling shareholders based on the achievement of additional performance milestones through the end of 2016.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2016
GOODWILL AND OTHER INTANGIBLE ASSETS	9. GOODWILL AND OTHER INTANGIBLE ASSETS As discussed in Note 17 “Geographic Information and Major Clients”, the Company operates in one reportable segment, Customer Engagement Solutions, and has one reporting unit. The following table presents the changes in the carrying amount of goodwill: Year Ended December 31, (in thousands) 2016 2015 2014 Balance as of January 1, $ 46,776 $ 46,860 $ 43,469 Goodwill acquired during the year 26,689 — 3,431 Translation adjustments (301 ) (84 ) (40 ) Balance as of December 31, $ 73,164 $ 46,776 $ 46,860 Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives. (in thousands) Range of Cost Accumulated Net book December 31, 2016 Customer related intangibles 4-10 years $ 63,091 $ (37,573 ) $ 25,518 Technology 3-10 58,942 (40,269 ) 18,673 Other intangibles 3 years 5,361 (5,361 ) — Total $ 127,394 $ (83,203 ) $ 44,191 December 31, 2015 Customer related intangibles 4-9 $ 49,546 $ (30,465 ) $ 19,081 Technology 3-9 48,342 (34,282 ) 14,060 Other intangibles 3 years 5,361 (5,084 ) 277 Total $ 103,249 $ (69,831 ) $ 33,418 Amortization expense of acquired intangibles was reflected in the Company’s consolidated statements of operations as follows: Year Ended December 31, (in thousands) 2016 2015 2014 Amortization expense: Cost of revenue $ 5,986 $ 5,392 $ 6,017 Selling and marketing 7,145 6,127 6,022 General and administrative 277 683 1,770 Total amortization expense $ 13,408 $ 12,202 $ 13,809 As of December 31, 2016, future estimated amortization expense is as follows: ( in thousands) Future estimated 2017 $ 12,334 2018 11,334 2019 5,542 2020 2,646 2021 2,623 2022 and thereafter 9,712 $ 44,191

ACCRUED EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2016
ACCRUED EXPENSES	10. ACCRUED EXPENSES December 31, (in thousands ) 2016 2015 Partner commissions $ 2,199 $ 3,319 Other taxes 9,031 10,070 Employee reimbursable expenses 1,624 1,426 Dividends payable 2,298 2,297 Professional services contractor fees 6,550 4,580 Self-insurance health and dental claims 2,182 2,129 Professional fees 3,654 2,937 Short-term deferred rent 1,770 1,600 Income taxes payable 1,391 5,464 Acquisition-related expenses and merger consideration 290 834 Restructuring 105 394 Marketing and sales program expenses 1,508 1,397 Cloud hosting expenses 83 1,370 Foreign currency forward contracts 883 1,052 Fixed assets in progress 855 1,632 Other 2,328 2,267 $ 36,751 $ 42,768

DEFERRED REVENUE

DEFERRED REVENUE	12 Months Ended
	Dec. 31, 2016
DEFERRED REVENUE	11. DEFERRED REVENUE December 31, (in thousands ) 2016 2015 Term license $ 15,843 $ 19,792 Perpetual license 23,189 21,094 Maintenance 112,397 95,262 Cloud 13,604 8,948 Services 10,614 10,777 Current deferred revenue 175,647 155,873 Perpetual license 7,909 12,389 Maintenance 1,802 2,227 Cloud 1,278 1,189 Long-term deferred revenue 10,989 15,805 $ 186,636 $ 171,678

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES	12. COMMITMENTS AND CONTINGENCIES Commitments The Company leases space for its offices under noncancellable operating leases that expire at various dates through 2023. As of December 31, 2016, the Company’s future minimum rental payments required under operating leases with noncancellable terms in excess of one year were as follows: (in thousands) For the calendar year Operating Leases (1) 2017 $ 13,604 2018 13,632 2019 12,039 2020 11,116 2021 9,483 2022 & Thereafter 17,735 $ 77,609 (1) Operating leases include future minimum rent payments, net of estimated sublease income for facilities that the Company has vacated pursuant to its restructuring activities. Rent expense under operating leases is recognized on a straight-line basis to account for scheduled rent increases and landlord tenant allowances. In connection with the Company’s amended lease for its office headquarters dated November 11, 2014, the Company has a landlord tenant allowance totaling approximately $9.4 million, all of which was used and reimbursed to the Company as of December 31, 2016 and will be amortized as a reduction to rent expense on a straight-line basis over the term of the lease. Total rent expense under operating leases was approximately $13.4 million, $12.3 million, and $12.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. Contingencies The Company is a party in various contractual disputes, litigation and potential claims arising in the ordinary course of business. The Company does not believe that the resolution of these matters will have a material adverse effect on its financial position or results of operations.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2016
STOCKHOLDERS' EQUITY	13. STOCKHOLDERS’ EQUITY (a) Preferred stock The Company has authorized 1,000,000 shares of preferred stock, which may be issued from time to time in one or more series. The Board of Directors has the authority to issue the shares of preferred stock in one or more series, to establish the number of shares to be included in each series, and to fix the designation, powers, preferences and rights of the shares of each series and the qualifications, limitations or restrictions thereof, without any further vote or action by the stockholders. The issuance of preferred stock could decrease the amount of earnings and assets available for distribution to holders of common stock, and may have the effect of delaying, deferring or defeating a change in control of the Company. The Company had not issued any shares of preferred stock through December 31, 2016. (b) Common stock The Company has 200,000,000 authorized shares of common stock, $0.01 par value per share, of which 76,591,000 shares were issued and outstanding at December 31, 2016. Since 2004, the Company’s Board of Directors has approved stock repurchase programs that have authorized the Company to repurchase in the aggregate up to $195 million of its common stock. On May 20, 2016, we announced that our Board of Directors extended the expiration date of the current stock repurchase program to June 30, 2017 and increased the amount of stock the Company is authorized to repurchase to $50 million between May 18, 2016 and June 30, 2017. Purchases under these programs have been made on the open market. Year Ended December 31, 2016 2015 2014 (Dollars in thousands) Shares Amount Shares Amount Shares Amount Prior year authorizations at January 1, $ 40,534 $ 13,284 $ 14,433 Authorizations 25,879 50,000 14,410 Repurchases paid 1,078,251 (27,028 ) 944,398 (22,530 ) 756,143 (15,264 ) Repurchases unsettled — — 7,836 (220 ) 13,983 (295 ) Authorized dollars remaining as of December 31, $ 39,385 $ 40,534 $ 13,284 (c) Dividends On May 27, 2014, the Company announced an increase in its quarterly common stock cash dividend from $0.015 to $0.03 per share, on a post-split basis. The Company declared quarterly dividends totaling $0.12 per share, $0.12 per share, and $0.105 per share, on a post-split basis, for the years ended December 31, 2016, 2015, and 2014, respectively. For the years ended December 31, 2016, 2015, and 2014, the Company paid cash dividends of $9.2 million, $9.2 million, and $6.9 million, respectively. It is the Company’s current intention to pay a quarterly cash dividend of $0.03 per share, however, the Board of Directors may terminate or modify this dividend program at any time without notice.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2016
STOCK-BASED COMPENSATION	14. STOCK-BASED COMPENSATION The majority of the Company’s stock-based compensation arrangements vest over a five year vesting schedule and the Company’s stock options have a ten-year The Company periodically grants stock options and restricted stock units (“RSUs”) for a fixed number of shares upon vesting to employees and non-employee Employees may elect to receive 50% of their target incentive compensation under the Company’s Corporate Incentive Compensation Plan (the “CICP”) in the form of RSUs instead of cash. If elected by an employee, the equity amount is equal in value on the date of grant to 50% of his or her target incentive opportunity, based on the employee’s base salary. The number of RSUs granted is determined by dividing 50% of the employee’s target incentive opportunity by 85% of the closing price of its common stock on the grant date, less the present value of expected dividends during the vesting period. If elected, the award vests 100% on the CICP payout date of the following year for all participants. Vesting is conditioned upon the performance conditions of the CICP and on continued employment; if threshold funding does not occur, the equity grant will be cancelled. The Company considers vesting to be probable on the grant date and recognizes the associated stock-based compensation expense over the requisite service period beginning on the grant date and ending on the vesting date. The Company grants options that allow for the settlement of vested stock options on a net share basis (“net settled stock options”). With net settled stock options, the employee does not surrender any cash or shares upon exercise. Rather, the Company withholds the number of shares to cover the option exercise price and the minimum statutory tax withholding obligations from the shares that would otherwise be issued upon exercise. The exercise of stock options on a net share basis results in fewer shares issued by the Company. Share-Based Compensation Plans: (a) 2004 Long-Term Incentive Plan (as amended and restated) In 2004, the Company adopted the 2004 Long-Term Incentive Plan (as amended and restated, the “2004 Plan”) to provide employees, non-employee non-qualified non-employee two-for-one non-employee non-employee non-employee non-employee As of December 31, 2016, approximately 10,597,000 shares were subject to outstanding options and stock-based awards under the 2004 Plan. (b) 2006 Employee Stock Purchase Plan In 2006, the Company adopted the 2006 Employee Stock Purchase Plan (the “2006 ESPP”) pursuant to which the Company’s employees are entitled to purchase up to an aggregate of 1,000,000 shares, giving effect to the Stock Split, of common stock at a price equal to at least 85% of the fair market value of the Company’s common stock on either the commencement date or completion date for offerings under the plan, whichever is less, or such higher price as the Company’s Board of Directors may establish from time to time. Until the Company’s Board of Directors determines otherwise, the Board has set the purchase price at 95% of the fair market value on the completion date of the offering period. As a result, the 2006 ESPP is non-compensatory Shares reserved As of December 31, 2016, there were approximately 10,230,000 shares remaining for issuance for future equity grants under the Company’s stock plans, consisting of approximately 9,581,000 shares under the 2004 Plan and approximately 649,000 shares under the 2006 ESPP. Equity grants, assumptions and activity During 2016, the Company issued approximately 1,154,000 shares to its employees under the Company’s share-based compensation plans and approximately 27,000 shares to the non-employee The following table presents the stock-based compensation expense included in the Company’s consolidated statements of operations: Year ended December 31, (in thousands) 2016 2015 2014 Stock-based compensation expense: Cost of revenues $ 11,459 $ 8,772 $ 5,335 Operating expenses 29,362 21,282 13,870 Total stock-based compensation before tax 40,821 30,054 19,205 Income tax benefit (12,198 ) (8,098 ) (5,563 ) Stock Options The Company estimates the fair value of stock options using a Black-Scholes option valuation model. Key inputs used to estimate the fair value of stock options include the exercise price of the award, the expected term of the option, the expected volatility of the Company’s common stock over the option’s expected term, the risk-free interest rate over the option’s expected term, and the Company’s expected annual dividend yield. The amount of stock-based compensation recognized during a period is based on the value of the awards that are ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the Company recognizes the actual expense over the vesting period only for the shares that vest. The weighted-average grant-date fair value for stock options granted in 2016, 2015, and 2014, was $8.31, $7.62 and $7.58 per share, respectively. The weighted-average assumptions used in the Black-Scholes option valuation model are as follows: Year ended December 31, 2016 2015 2014 Expected annual volatility (1) 40 % 45 % 47 % Expected term in years (2) 4.4 4.5 4.4 Risk-free interest rate (3) 1.21 % 1.34 % 1.33 % Expected annual dividend yield (4) 0.63 % 0.68 % 0.44 % (1) The expected annual volatility for each grant is determined based on the average of historical daily price changes of the Company’s common stock over a period of time which approximates the expected option term. (2) The expected option term for each grant is determined based on the historical exercise behavior of employees and post-vesting employment termination behavior. (3) The risk-free interest rate is based on the yield of U.S. Treasury securities with a maturity that is commensurate with the expected option term at the time of grant. (4) The expected annual dividend yield is based on the weighted-average of the dividend yield assumptions used for options granted during the applicable period. The expected annual dividend has historically been based on the expected dividend of $0.06 per share, per year ($0.015 per share, per quarter times 4 quarters), on a post-split basis, divided by the average stock price. On May 27, 2014, the Company announced an increase in its quarterly cash dividend from $0.015 to $0.03 per share. Thus, for grants made after this date, the expected annual dividend is based on the expected dividend of $0.12 per share, per year ($0.03 per share, per quarter times 4 quarters), divided by the average stock price. The Company elected to adopt the alternative transition method (“short cut method”) in calculating its historical pool of windfall tax benefits in regards to its share-based compensation. The following table summarizes the combined stock option activity under the Company’s stock option plans for the year ended December 31, 2016: Shares (in thousands) Weighted-average Weighted-average Aggregate intrinsic Options outstanding as of January 1, 2016 6,563 $ 16.01 Granted 2,691 25.72 Exercised (1,275 ) 14.41 Forfeited/Cancelled (516 ) 20.85 Options outstanding as of December 31, 2016 7,463 $ 19.45 Vested and expected to vest as December 31, 2016 6,154 $ 18.99 7.3 $ 104,655 Exercisable as of December 31, 2016 2,696 $ 14.21 5.7 $ 58,741 The aggregate intrinsic value of stock options exercised (i.e., the difference between the market price at exercise and the price paid by the employee at exercise) in 2016, 2015, and 2014 was $19.9 million, $18.6 million and $13.2 million, respectively. The aggregate intrinsic value of stock options outstanding and exercisable as of December 31, 2016 is based on the difference between the closing price of the Company’s stock of $36.00 on December 31, 2016 and the exercise price of the applicable stock options. As of December 31, 2016, the Company had unrecognized stock-based compensation expense related to the unvested portion of stock options of approximately $14.5 million that is expected to be recognized as expense over a weighted-average period of approximately 2.2 years. RSUs The weighted-average grant-date fair value for RSUs granted in 2016, 2015, and 2014 was $25.54, $20.49, and $19.88, respectively. The following table summarizes the combined RSU activity for periodic grants and the CICP under the 2004 Plan for the year ended December 31, 2016: Shares Weighted- Grant-Date Aggregate Nonvested as of January 1, 2016 2,607 $ 20.03 Granted 1,929 25.54 Vested (1,071 ) 19.41 Forfeited (304 ) 22.22 Nonvested as of December 31, 2016 3,161 $ 23.39 $ 113,824 Expected to vest as of December 31, 2016 2,350 $ 23.55 $ 84,592 The RSUs associated with periodic grants generally vest over five years with 20% vesting after one year and the remaining 80% vesting in equal quarterly installments over the remaining four years. Approximately 225,000 RSUs granted in connection with the 2016 CICP are expected to vest 100% in March 2017. The fair value of RSUs vested in 2016, 2015, and 2014 was $29.2 million, $14.9 million, and $8.0 million, respectively. The aggregate intrinsic value of RSUs outstanding and expected to vest as of December 31, 2016 is based on the closing price of the Company’s stock of $36.00 on December 31, 2016. As of December 31, 2016, the Company had approximately $27.8 million of unrecognized stock-based compensation expense related to all unvested RSUs that is expected to be recognized as expense over a weighted-average period of approximately 2.1 years.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
INCOME TAXES	15. INCOME TAXES Effective tax rate The components of income before provision for income taxes are as follows for the years ended December 31: (in thousands) 2016 2015 2014 Domestic $ 37,329 $ 63,124 $ 36,485 Foreign (2,127 ) (2,619 ) 11,509 Total income before provision $ 35,202 $ 60,505 $ 47,994 The components of the provision for income taxes are as follows for the years ended December 31: (in thousands) 2016 2015 2014 Current: Federal $ 6,741 $ 17,864 $ 22,488 State 2,963 4,565 2,952 Foreign 4,322 3,853 3,195 Total current provision 14,026 26,282 28,635 Deferred: Federal (1,120 ) 2,075 (11,972 ) State (480 ) (466 ) (1,209 ) Foreign (4,210 ) (3,708 ) (715 ) Total deferred benefit (5,810 ) (2,099 ) (13,896 ) Total provision $ 8,216 $ 24,183 $ 14,739 The effective income tax rate differed from the statutory federal income tax rate due to the following: 2016 2015 2014 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % Valuation allowance 0.3 0.7 0.5 Transaction costs 1.1 — — State income taxes, net of federal benefit and tax credits 3.7 4.6 1.8 Permanent differences 2.2 1.1 1.3 Domestic production activities (3.2 ) (3.1 ) (4.9 ) Federal research and experimentation credits (2.3 ) (1.2 ) (1.7 ) Tax effects of foreign activities 5.2 2.0 (2.2 ) Tax-exempt (0.3 ) (0.1 ) (0.1 ) Provision to return adjustments 0.3 0.3 — Non-deductible 6.2 3.3 2.5 Provision for uncertain tax positions (2.3 ) (2.6 ) (0.7 ) Excess tax benefits related to share-based compensation (20.1 ) — — Other (2.5 ) — (0.8 ) Effective income tax rate 23.3 % 40.0 % 30.7 % Deferred income taxes Deferred income taxes reflect the tax attributes and tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company retrospectively adopted ASU 2015-17 non-current Significant components of net deferred tax assets and liabilities are as follows: (in thousands) 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 69,307 $ 65,601 Accruals and reserves 34,021 30,322 Software revenue 6,559 6,608 Depreciation 3,593 5,327 Tax credit carryforwards 8,094 6,686 Other 19 58 Total deferred tax assets 121,593 114,602 Less valuation allowances (34,054 ) (35,509 ) Total net deferred tax assets $ 87,539 $ 79,093 Deferred tax liabilities: Intangibles $ (17,641 ) $ (13,363 ) Total deferred tax liabilities (17,641 ) (13,363 ) Total net deferred income taxes $ 69,898 $ 65,730 The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more-likely-than-not The Company acquired approximately $22.4 million and $0.3 million of federal and state net operating losses (“NOLs”) respectively, and approximately $0.9 million of general business credits, in connection with the acquisition of OpenSpan on April 11, 2016. The Company has determined it may utilize $20.2 million and $0.1 million of the acquired OpenSpan federal and state NOLs, respectively, and $0.4 million of the general business credits subject to annual limitations, in accordance with Section 382 and Section 383 of the Internal Revenue Code of 1986, as amended, which are scheduled to expire by 2036. As of December 31, 2016, the Company anticipates using $16.9 million of the remaining NOLs by 2021. As of December 31, 2016, the Company had approximately $38.5 million of acquired Antenna federal NOLs, which are subject to annual use limitations under Section 382 and Section 383 of the Internal Revenue Code of 1986, as amended. Based on those limitations, the Company anticipates using $6.2 million of the remaining NOLs by 2031. With regard to the acquired foreign NOLs of $58.1 million, a full valuation allowance has been recorded as of December 31, 2016 due to uncertainty regarding the availability of these NOLs to offset future income generated by the related foreign businesses due to limitations under local country change in control provisions. As of December 31, 2016, the Company had approximately $101.9 million of acquired Chordiant federal NOLs, which are subject to annual use limitations under Section 382 and Section 383 of the Internal Revenue Code of 1986, as amended. Based on those limitations, the Company anticipates using $76.1 million of the remaining NOLs by 2029. In addition, the Company has $0.3 million of deferred tax assets related to state NOLs as of December 31, 2016. As of December 31, 2016, the Company had available $23.8 million of foreign NOLS which have an unlimited carryover period. As of December 31, 2016, the Company had available $7.1 million of state tax research and experimentation (“R&E”) credits expiring in the years 2017 through 2031 and $0.9 million of investment and other state tax credits, which have an unlimited carryover. The Company’s India subsidiary is a development center in an area designated as a Special Economic Zone (“SEZ”) and is entitled to a tax holiday in India. The tax holiday reduces or eliminates income tax in that country and is scheduled to expire in 2022. For the years ended December 31, 2016, 2015, and 2014, the effect of the income tax holiday was to reduce the overall income tax provision by approximately $1 million, $0.9 million, and $0.8 million, respectively. The benefit of the tax holiday on net income per share (diluted) was $0.01 for each of the years ended December 31, 2016, 2015, and 2014. The Company elected to early adopt ASU 2016-09 2016-09, Undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $33.7 million as of December 31, 2016. The Company has not provided any additional federal or state income taxes or foreign withholding taxes on the undistributed earnings as such earnings have been indefinitely reinvested in the business. It is impractical to estimate the amount of tax the Company could have to pay upon repatriation due to the complexity of foreign tax credit calculations and because the Company considers its earnings permanently reinvested. Uncertain tax benefits and other considerations A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: (in thousands) 2016 2015 2014 Balance as of January 1, $ 23,972 $ 43,396 $ 40,929 Additions based on tax positions related to the current year 80 817 4,041 Additions for tax positions of prior years 110 183 285 (Reductions) Additions for acquired uncertain tax benefits 387 — (716 ) Reductions for tax positions of prior years (1,541 ) (19,855 ) (853 ) Reductions for a lapse of the applicable statute of limitations (337 ) (569 ) (290 ) Balance as of December 31, $ 22,671 $ 23,972 $ 43,396 As of December 31, 2016, the Company had approximately $22.7 million of total unrecognized tax benefits, which would decrease the Company’s effective tax rate if recognized. The $1.5 million reduction for tax positions of prior years primarily relates the lapse in the applicable statute of limitations, revision of accounting estimates, and the impact of foreign currency exchange rates. The Company expects that the changes in the unrecognized benefits within the next twelve months will be approximately $0.1 million due to the lapse of statute of limitations. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision. For the year ended December 31, 2016 the Company did not recognize any significant change in net interest expense. For the year ended December 31, 2015 and 2014, the Company recognized a decrease of approximately $0.6 million and an increase of $0.3 million, respectively, of interest expense. As of December 31, 2016, 2015 and 2014, the company did not recognized any significant penalties. As of December 31, 2016, 2015 and 2014, the Company had accrued approximately $1.2 million, $1.2 million, and $1.5 million, respectively, for interest and penalties. The Company files income tax returns in the U.S. and in foreign jurisdictions. We have no tax returns under examination by the Internal Revenue Service as of December 31, 2016. However, certain states and foreign jurisdictions are auditing our income tax returns for periods ranging from 2010 through 2014. The Company does not expect the results of these audits to have a material effect on our financial condition, results of operations, or cash flows. With few exceptions, the statute of limitations remains open in all jurisdictions for the tax years 2013 to the present.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2016
EARNINGS PER SHARE	16. EARNINGS PER SHARE Basic earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period, plus the dilutive effect of outstanding options and RSUs, using the treasury stock method and the average market price of the Company’s common stock during the applicable period. Certain shares related to some of the Company’s outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were antidilutive in the periods presented, but could be dilutive in the future. Year Ended December 31, (in thousands, except per share amounts) 2016 2015 2014 Basic Net income $ 26,986 $ 36,322 $ 33,255 Weighted-average common shares outstanding 76,343 76,507 76,327 Earnings per share, basic $ 0.35 $ 0.47 $ 0.44 Diluted Net income $ 26,986 $ 36,322 $ 33,255 Weighted-average common shares outstanding 76,343 76,507 76,327 Weighted-average effect of dilutive securities: Stock options 2,025 1,601 1,698 RSUs 1,364 935 506 Effect of assumed exercise of stock options and RSUs 3,389 2,536 2,204 Weighted-average common shares outstanding, assuming dilution 79,732 79,043 78,531 Earnings per share, diluted $ 0.34 $ 0.46 $ 0.42 Outstanding options and RSUs excluded as impact would be antidilutive 322 182 98

GEOGRAPHIC INFORMATION AND MAJO

GEOGRAPHIC INFORMATION AND MAJOR CLIENTS	12 Months Ended
	Dec. 31, 2016
GEOGRAPHIC INFORMATION AND MAJOR CLIENTS	17. GEOGRAPHIC INFORMATION AND MAJOR CLIENTS Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company develops and licenses its strategic software applications and Pega Platform, and provides consulting services, maintenance, and training related to its offerings. The Company derives substantially all of its revenue from the sale and support of one group of similar products and services—software that provides case management, business process management, and real-time decisioning solutions to improve customer engagement and operational excellence in the enterprise applications market. To assess performance, the Company’s CODM, who is the chief executive officer, reviews financial information on a consolidated basis. Therefore, the Company determined it has one reportable segment—Customer Engagement Solutions and one reporting unit. The Company’s international revenue is from clients based outside of the U.S. The Company derived its revenue from the following geographic areas: Year ended December 31, (Dollars in thousands) 2016 2015 2014 U.S. $ 430,562 57 % $ 379,936 56 % $ 327,154 55 % Other Americas 59,160 8 % 57,892 8 % 32,642 6 % United Kingdom 101,733 14 % 96,314 14 % 93,923 16 % Other EMEA (1) 92,540 12 % 87,240 13 % 87,050 15 % Asia Pacific 66,271 9 % 61,313 9 % 49,235 8 % $ 750,266 100 % $ 682,695 100 % $ 590,004 100 % (1) Includes Europe, the Middle East and Africa, but excludes the United Kingdom (“Other EMEA”). Long-lived assets related to the Company’s U.S. and international operations were as follows: December 31, (Dollars in thousands) 2016 2015 U.S. $ 27,993 73 % $ 17,600 56 % India 7,158 19 % 10,530 34 % International, other 3,130 8 % 3,189 10 % $ 38,281 100 % $ 31,319 100 % There were no clients accounting for 10% or more of the Company’s total revenue in 2016, 2015, and 2014. There was one client accounting for 10% or more of the Company’s total outstanding trade receivables as of December 31, 2015, as listed below. The Company’s financial services, healthcare, and insurance clients as a group represent a significant amount of the Company’s revenues and receivables. However, the Company determined this concentration did not have a material impact on its allowance for sales credit memos as of December 31, 2016. December 31, (Dollars in thousands) 2016 2015 Trade receivables, net of allowances $ 265,028 $ 211,846 Client A — % 10 % Marketable securities are another financial instrument that potentially subject the Company to a concentration of credit risk. See Note 3 “Marketable Securities” and Note 5 “Fair Value Measurements” for further discussion.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2016
EMPLOYEE BENEFIT PLANS	18. EMPLOYEE BENEFIT PLANS The Company sponsors a 401(k) defined contribution retirement plan for qualifying employees pursuant to which the Company makes discretionary matching contributions. The Company’s expense under the plan totaled approximately $4.5 million in 2016, $4.1 million in 2015, and $3.4 million in 2014. In addition, the Company has defined contribution plans for qualifying international employees and contributions expensed under those plans totaled approximately $7.6 million in 2016, $6.4 million in 2015, and $5.1 million in 2014.

SELECTED QUARTERLY INFORMATION

SELECTED QUARTERLY INFORMATION (UNAUDITED)	12 Months Ended
	Dec. 31, 2016
SELECTED QUARTERLY INFORMATION (UNAUDITED)	19. SELECTED QUARTERLY INFORMATION (UNAUDITED) 2016 (1) (in thousands, except per share amounts) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenue $ 178,858 $ 188,996 $ 182,802 $ 199,610 Gross profit 122,348 128,896 122,365 137,401 Income from operations 14,125 6,360 5,498 11,776 Income before provision for income taxes 13,493 5,498 5,515 10,696 Net income 10,400 4,536 3,301 8,749 Net earnings per share, basic $ 0.14 $ 0.06 $ 0.04 $ 0.11 Net earnings per share, diluted $ 0.13 $ 0.06 $ 0.04 $ 0.11 (1) The Company elected to early adopt ASU 2016-09 2016-09 2015 (in thousands, except per share amounts) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenue $ 153,918 $ 162,019 $ 162,403 $ 204,355 Gross profit 103,859 107,238 106,962 151,190 Income from operations 11,909 5,250 10,711 36,791 Income before provision for income taxes 9,260 4,501 10,246 36,498 Net income 5,935 3,104 6,325 20,958 Net earnings per share, basic $ 0.08 $ 0.04 $ 0.08 $ 0.27 Net earnings per share, diluted $ 0.08 $ 0.04 $ 0.08 $ 0.26

SIGNIFICANT ACCOUNTING POLICI28

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Revenue recognition	(a) Revenue recognition The Company’s revenue is derived primarily from software licenses, maintenance fees related to the Company’s software licenses, and consulting services. The Company’s license arrangements, whether involving a perpetual license or a term license, generally also contain multiple elements, including consulting services, training, and software maintenance services. Software revenue recognition requires judgment, including whether a software arrangement includes multiple elements, and if so, whether vendor-specific objective evidence (“VSOE”) of fair value exists for those elements. The amount of arrangement consideration allocated to undelivered elements is based on the VSOE of fair value for those elements and recognized as those elements are delivered. Any remaining portion of the total arrangement fee is allocated to the software license—the first delivered element. Revenue is recognized for each element when all of the revenue recognition criteria have been met. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. Changes in the mix of the elements in a software arrangement, the ability to identify VSOE for those elements, the fair value of the respective elements, and changes to a product’s estimated life cycle could materially impact the amount of earned and unearned revenue. Before the Company can recognize revenue, the following four basic criteria must be met: • Persuasive evidence of an arrangement • Delivery of product and services • Fee is fixed or determinable • Collection of fee is probable Software license revenues Perpetual software license fees are recognized as revenue when the software is delivered, any acceptance required by the contract that is not perfunctory is obtained, no significant obligations or contingencies exist related to the software, all other undelivered elements in a multiple element arrangement possess VSOE, and all other revenue recognition criteria are met. Term software license fees are usually payable on a monthly, quarterly, or annual basis under license agreements that typically have a three to five-year term and may be renewed for additional terms at the client’s option. The Company recognizes term license revenue over the term of the agreement as payments become due or earlier if prepaid, provided all other criteria for revenue recognition have been met. Maintenance revenues First-year maintenance typically is sold with the related software license and renewed on an annual basis thereafter. Maintenance revenue is deferred and recognized ratably over the term of the support period, which is generally one year and subject to annual renewals. Perpetual software maintenance obligations are based on separately stated renewal rates in the arrangement that are substantive and therefore represent VSOE of fair value. Term license arrangements include separately stated maintenance fees and the Company uses stand-alone sales to determine VSOE of fair value. Services revenues The Company’s services revenue is comprised of fees for consulting services including software implementation, training, reimbursable expenses, and for sales of its Pega Cloud as-a-platform Revenue from training services and consulting services under time and materials contracts is recognized as services are performed. The Company has VSOE of fair value for its training services and consulting services under time and materials contracts in the Americas, Europe, and certain regions of Asia. Consulting services may sometimes be provided on a fixed-price basis. The Company does not have VSOE of fair value for fixed-price services or time and materials services in certain geographical regions. When these services are part of a multiple element arrangement, and the services are not essential to the functionality of the software, and when services, including maintenance, are the only undelivered element, the Company recognizes the revenue from the total arrangement ratably over the longer of the software maintenance period or the service period. Revenue from fixed-price services that are not bundled with a software license is generally recognized ratably over the service period, which is typically less than four months. Revenue from stand-alone sales of the Pega Cloud Dev/Test environment is recognized as services are performed because the Company has VSOE of fair value. Revenue from stand-alone sales of the Pega Cloud Production environment is recognized ratably over the term of the service. When implementation services are sold together with the Company’s Pega Cloud offering and these services have stand-alone value to the client, the Company accounts for these services separately from this offering. Stand-alone value is established through the client’s ability to buy these services from many trained partner system integrators and from transactions sold independently from the sale of Pega Cloud. Since these multiple-element arrangements are not software license sales, the Company applies a selling price hierarchy to determine the fair value of each element in the arrangement. Under the selling price hierarchy, each element’s fair value is determined based on its VSOE, if available. If VSOE does not exist, third-party evidence of fair value (“TPE”) will be considered, and estimated selling price (“ESP”) will be used if neither VSOE nor TPE is available. The Company generally does not have VSOE of its Pega Cloud offering and is not able to determine TPE as its sales strategy is customized to the needs of its clients and the Company’s products and services are dissimilar to comparable products or services in the marketplace. In determining ESP, the Company applies significant judgment as it weighs a variety of factors, based on the facts and circumstances of the arrangement. The Company typically arrives at an ESP for a service without VSOE or TPE by considering company-specific factors such as geographies, competitive landscape, and pricing practices used to establish bundled pricing and discounting. Deferred revenue Deferred software license revenue typically results from client billings for which all of the criteria to recognize revenue have not been met. Deferred maintenance revenue represents software license updates and product support contracts that are typically billed in advance and are recognized ratably over the support periods. Deferred services revenue represents advanced billings for consulting, hosting, and training services that are recognized as the services are performed.
Fair value of financial instruments	(b) Fair value of financial instruments The principal financial instruments held by the Company consist of cash equivalents, marketable securities, derivative instruments, accounts receivable, and accounts payable, which are measured at fair value. See Note 3 “Marketable Securities”, Note 4 “Derivative Instruments”, and Note 5 “Fair Value Measurements” for further discussion of financial instruments that are carried at fair value on a recurring basis.
Derivative instruments	(c) Derivative instruments The Company uses foreign currency forward contracts (“forward contracts”) to manage its exposures to changes in foreign currency exchange rates associated with its foreign currency denominated accounts receivable, intercompany receivable and payables, and cash. See Note 4 “Derivative Instruments” for further discussion.
Property and equipment	(d) Property and equipment Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are three years for computer equipment and five years for furniture and fixtures. Leasehold improvements are amortized over the lesser of the term of the lease or the useful life of the asset. Repairs and maintenance costs are expensed as incurred.
Internal-use software	(e) Internal-use The Company capitalizes and amortizes certain direct costs associated with computer software developed or purchased for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. The Company amortizes capitalized software costs generally over three to five years commencing on the date the software is placed into service. During the fourth quarter of 2016, the Company placed $11.3 million of costs for computer software developed for internal use into service, of which $1.1 million was capitalized in 2015 and $10.2 million was capitalized in 2016. During 2014, the Company did not capitalize any costs for computer software developed for internal use.
Goodwill	(f) Goodwill Goodwill represents the residual purchase price paid in a business combination after the fair value of all identified assets and liabilities have been recorded. Goodwill is not amortized. The Company operates as a single reporting unit. The Company performed its qualitative assessment as of November 30, 2016, 2015, and 2014, and concluded it was not more likely than not that the fair value of its reporting unit was less than its carrying value.
Intangible and long-lived assets	(g) Intangible and long-lived assets All of the Company’s intangible assets are amortized using the straight-line method over their estimated useful life. The Company evaluates its long-lived tangible and intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Impairment is assessed by comparing the undiscounted cash flows expected to be generated by the intangible asset to its carrying value. If impairment exists, the Company calculates the impairment by comparing the carrying value of the intangible asset to its fair value as determined by discounted expected cash flows. The Company did not record any impairments in 2016, 2015, or 2014.
Business combinations	(h) Business combinations The Company uses its best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related
Research and development and software development costs	(i) Research and development and software development costs Research and development costs are expensed as incurred. Capitalization of computer software developed for resale begins upon the establishment of technological feasibility, generally demonstrated by a working model or an operative version of the computer software product. Such costs have not been material to date as technological feasibility is established within a short time frame from the software’s general availability and, as a result, no costs were capitalized in 2016, 2015, or 2014.
Stock-based compensation	(j) Stock-based compensation The Company recognizes stock-based compensation expense associated with equity awards based on the fair value of these awards at the grant date. Stock-based compensation is recognized over the requisite service period, which is generally the vesting period of the equity award, and is adjusted each period for anticipated forfeitures. See Note 14 “Stock-based Compensation” for discussion of the Company’s key assumptions included in determining the fair value of its equity awards at the grant date.
Acquisition-related expenses	(k) Acquisition-related expenses Acquisition-related costs are expensed as incurred and include direct and incremental costs associated with an impending or completed acquisition. During 2016, 2015, and 2014, $2.6 million, $0.1 million, and $0.5 million, respectively, of acquisition-related costs were primarily professional fees associated with the Company’s acquisition of OpenSpan, Inc. (“OpenSpan”) and the acquisitions completed in 2014.
Foreign currency translation	(l) Foreign currency translation The translation of assets and liabilities for the majority of the Company’s foreign subsidiaries are made at period-end non-monetary
Accounting for income taxes	(m) Accounting for income taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company regularly assesses the need for a valuation allowance against its deferred tax assets. Future realization of the Company’s deferred tax assets ultimately depends on the existence of sufficient taxable income within the available carryback or carryforward periods. Sources of taxable income include taxable income in prior carryback years, future reversals of existing taxable temporary differences, tax planning strategies, and future taxable income. The Company records a valuation allowance to reduce its deferred tax assets to an amount it believes is more-likely-than-not with-and-without The Company assesses its income tax positions and records tax benefits based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more-likely-than-not more-likely-than-not non-current As a global company, the Company uses significant judgment to calculate and provide for income taxes in each of the tax jurisdictions in which it operates. In the ordinary course of the Company’s business, there are transactions and calculations undertaken whose ultimate tax outcome cannot be certain. Some of these uncertainties arise as a consequence of transfer pricing for transactions with the Company’s subsidiaries and nexus and tax credit estimates. In addition, the calculation of acquired tax attributes and the associated limitations are complex. See Note 15 “Income Taxes” for further information. The Company estimates its exposure to unfavorable outcomes related to these uncertainties and estimates the probability of such outcomes.
Advertising expense	(n) Advertising expense Advertising costs are expensed as incurred. Advertising costs were $8.9 million, $9.8 million, $1.4 million during the years ended December 31, 2016, 2015, and 2014, respectively.
New accounting pronouncements	(o) New accounting pronouncements Measurement of Credit Losses on Financial Instruments: No. 2016-13, available-for-sale Improvements to Employee Share-Based Payment Accounting: No. 2016-09, 2016-09,”) The Company elected to early adopt ASU 2016-09 2016-09 2016-09 The Company elected to continue to estimate forfeitures over the service period of the award, rather than as they occur, and will continue to present taxes paid in connection with shares withheld to meet statutory tax withholdings requirements for net settlement of equity awards as a financing activity in the statement of cash flows. These aspects of ASU 2016-09 Adoption of the new standard also resulted in adjustments to our unaudited selected quarterly data previously reported for fiscal year 2016 as follows: Three Months Ended (Dollars in thousands) March 31, 2016 June 30, 2016 September 30, 2016 As As As As As As Unaudited condensed consolidated statements of operations data: Income before provision for income taxes $ 13,493 $ 13,493 $ 5,498 $ 5,498 $ 5,515 $ 5,515 Provision for income taxes $ 4,488 $ 3,093 $ 1,851 $ 962 $ 3,097 $ 2,214 Net income $ 9,005 $ 10,400 $ 3,647 $ 4,536 $ 2,418 $ 3,301 Effective tax rate 33.3 % 22.9 % 33.7 % 17.5 % 56.2 % 40.1 % Earnings per share: Basic $ 0.12 $ 0.14 $ 0.05 $ 0.06 $ 0.03 $ 0.04 Diluted $ 0.11 $ 0.13 $ 0.05 $ 0.06 $ 0.03 $ 0.04 Weighted-average number of common shares outstanding: Diluted 78,878 79,235 78,969 79,422 79,082 79,548 Three Months Ended Six Months Ended Nine Months Ended (in thousands) March 31, 2016 June 30, 2016 September 30, 2016 As As As As As As Unaudited condensed consolidated statements of cash flows data: Net cash provided by operating activities $ 8,642 $ 10,040 $ 9,299 $ 11,569 $ 17,396 $ 20,556 Net cash used in financing activities $ (18,424 ) $ (19,822 ) $ (29,396 ) $ (31,666 ) $ (39,871 ) $ (43,031 ) Leases: No. 2016-02, right-of-use right-of-use Balance Sheet Classification of Deferred Taxes: No. 2015-17, Revenue from Contracts with Customers: No. 2014-09, No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12 The Company has elected the full retrospective adoption model, effective January 1, 2018. Quarterly results in the 2018 fiscal year and comparative prior periods will be compliant with ASC 606, with the first Annual Report on Form 10-K The Company is still in the process of quantifying the implications of the adoption of ASC 606, however the Company expects the following impacts: • Currently, the Company recognizes revenue from term licenses and perpetual licenses with extended payment terms over the term of the agreement as payments become due or earlier if prepaid, provided all other criteria for revenue recognition have been met, and any corresponding maintenance over the term of the agreement. The adoption of ASC 606 will result in revenue for performance obligations recognized as they are satisfied therefore, revenue from the term license performance obligation is expected to be recognized upon delivery and revenue from the maintenance performance obligation is expected to be recognized on a straight-line basis over the contractual term. Due to the revenue from term licenses and perpetual licenses with extended payment terms being recognized prior to amounts being billed to the customer, we expect to recognize a net contract asset on the balance sheet. • Currently, the Company allocates revenue to licenses under the residual method when it has VSOE for the remaining undelivered elements which allocates any future credits or significant discounts entirely to the license. The adoption of ASC 606 will result in the future credits, significant discounts, and material rights under ASC 606, being allocated to all performance obligations based upon their relative selling price. Under ASC 606, additional license revenue from the reallocation of such arrangement considerations will be recognized when control is transferred to the customer. • Currently, the Company does not have VSOE for fixed price services, time and materials services in certain geographical areas, and unspecified future products, which results in revenue being deferred in such instances until such time as VSOE exists for all undelivered elements or recognized ratably over the longest performance period. The adoption of ASC 606 eliminates the requirement for VSOE and replaces it with the concept of a stand-alone selling price. Once the transaction price is allocated to each of the performance obligations the Company can recognize revenue as the performance obligations are delivered, either at a point in time or over time. Under ASC 606, license revenue will be recognized when control is transferred to the customer. • Sales commissions and other third party acquisition costs resulting directly from securing contracts with customers are currently expensed when incurred. ASC 606 will require these costs of acquiring contracts to be recognized as an asset when incurred and to be expensed over the associated contract term. As a practical expedient, if the term of the contract is one year or less, the Company will expense the costs resulting directly from securing the contracts with customers. We expect this to impact our multi-year cloud offerings and perpetual licenses with additional rights of use that extend beyond one year. • ASC 606 provides additional accounting guidance for contract modifications whereby changes must be accounted for either as a retrospective change (creating either a catch up or deferral of past revenues), prospectively with a reallocation of revenues amongst identified performance obligations, or prospectively as separate contracts which will not require any reallocation. This may result in a difference in the timing of the recognition of revenue as compared to how current contract modifications are recognized. • There will be a corresponding effect on tax liabilities in relation to all of the above impacts. The Company is continuing its analysis of the expected impacts of the adoption of ASC 606.

SIGNIFICANT ACCOUNTING POLICI29

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Adjustments to Unaudited Selected Quarterly Data Previously Reported Resulted from Adoption of New Standards	Adoption of the new standard also resulted in adjustments to our unaudited selected quarterly data previously reported for fiscal year 2016 as follows: Three Months Ended (Dollars in thousands) March 31, 2016 June 30, 2016 September 30, 2016 As As As As As As Unaudited condensed consolidated statements of operations data: Income before provision for income taxes $ 13,493 $ 13,493 $ 5,498 $ 5,498 $ 5,515 $ 5,515 Provision for income taxes $ 4,488 $ 3,093 $ 1,851 $ 962 $ 3,097 $ 2,214 Net income $ 9,005 $ 10,400 $ 3,647 $ 4,536 $ 2,418 $ 3,301 Effective tax rate 33.3 % 22.9 % 33.7 % 17.5 % 56.2 % 40.1 % Earnings per share: Basic $ 0.12 $ 0.14 $ 0.05 $ 0.06 $ 0.03 $ 0.04 Diluted $ 0.11 $ 0.13 $ 0.05 $ 0.06 $ 0.03 $ 0.04 Weighted-average number of common shares outstanding: Diluted 78,878 79,235 78,969 79,422 79,082 79,548 Three Months Ended Six Months Ended Nine Months Ended (in thousands) March 31, 2016 June 30, 2016 September 30, 2016 As As As As As As Unaudited condensed consolidated statements of cash flows data: Net cash provided by operating activities $ 8,642 $ 10,040 $ 9,299 $ 11,569 $ 17,396 $ 20,556 Net cash used in financing activities $ (18,424 ) $ (19,822 ) $ (29,396 ) $ (31,666 ) $ (39,871 ) $ (43,031 )

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2016
Schedule of Available for Sale Securities Reconciliation	(in thousands) December 31, 2016 Amortized Unrealized Unrealized Fair Value Marketable securities: Municipal bonds $ 36,746 $ — $ (139 ) $ 36,607 Corporate bonds 26,610 1 (51 ) 26,560 Marketable securities $ 63,356 $ 1 $ (190 ) $ 63,167 (in thousands) December 31, 2015 Amortized Unrealized Unrealized Fair Value Marketable securities: Municipal bonds $ 57,394 $ 7 $ (66 ) $ 57,335 Corporate bonds 66,960 2 (147 ) 66,815 Certificates of deposit 1,903 — (1 ) 1,902 Marketable securities $ 126,257 $ 9 $ (214 ) $ 126,052

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value of Company Outstanding Forward Contracts	The fair value of the Company’s outstanding forward contracts was as follows: (in thousands) December 31, 2016 December 31, 2015 Recorded In: Fair Value Recorded In: Fair Value Asset Derivatives Foreign currency forward contracts Other current assets $ 628 Other current assets $ 48 Liability Derivatives Foreign currency forward contracts Accrued expenses $ 883 Accrued expenses $ 1,052
Forward Contracts Outstanding with Total Notional Values	The Company had forward contracts outstanding with total notional values as follows: As of December 31, Currency (in thousands) 2016 2015 Euro € 29,820 € 14,900 British pound £ 6,440 £ — Australian dollar A$ 22,010 A$ 9,100 United States dollar $ 73,125 $ 9,400
Change in Fair Value of Forward Contracts	Change in Fair Value in USD Year Ended December 31, (in thousands) 2016 2015 2014 Loss from the change in the fair value of forward contracts included in other expense, net $ (5,643 ) $ (1,047 ) $ (532 ) Foreign currency transaction gains (losses) from the remeasurement of foreign currency assets and liabilities 2,247 (4,168 ) (3,769 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
Assets and Liabilities Measured at Fair Value	The Company’s assets and liabilities measured at fair value on a recurring basis consisted of the followings: (in thousands) December 31, Quoted Prices Significant Fair Value Assets: Money market funds $ 458 $ 458 $ — Marketable securities: Municipal bonds $ 36,607 $ — $ 36,607 Corporate bonds 26,560 — 26,560 Certificates of deposit — — — Total marketable securities $ 63,167 $ — $ 63,167 Foreign currency forward contracts $ 628 $ — $ 628 Fair Value Liabilities: Foreign currency forward contracts $ 883 $ — $ 883 (in thousands) December 31, Quoted Prices Significant Fair Value Assets: Money market funds $ 573 $ 573 $ — Marketable securities: Municipal bonds $ 57,335 $ — $ 57,335 Corporate bonds 66,815 — 66,815 Certificates of deposit 1,902 — 1,902 Total marketable securities $ 126,052 $ — $ 126,052 Foreign currency forward contracts $ 48 $ — $ 48 Fair Value Liabilities: Foreign currency forward contracts $ 1,052 $ — $ 1,052

TRADE ACCOUNTS RECEIVABLE, NE33

TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (Tables)	12 Months Ended
	Dec. 31, 2016
Schedule of Trade Accounts Receivable	Unbilled trade accounts receivable primarily relate to services earned under time and materials arrangements and to license, maintenance, and cloud arrangements that have commenced or been delivered in excess of scheduled invoicing. December 31, (in thousands) 2016 2015 Trade accounts receivable $ 234,473 $ 190,820 Unbilled accounts receivable 34,681 25,657 Total accounts receivable 269,154 216,477 Allowance for sales credit memos (4,126 ) (4,631 ) $ 265,028 $ 211,846
Activity of Allowance for Sales Credit Memos	The following reflects the activity of the allowance for sales credit memos: Year Ended December 31, (in thousands) 2016 2015 2014 Balance at beginning of year $ 4,631 $ 1,540 $ 1,997 Provision for credit memos 3,290 8,005 2,164 Credit memos issued (3,795 ) (4,914 ) (2,621 ) $ 4,126 $ 4,631 $ 1,540

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
Property and Equipment	December 31, (in thousands) 2016 2015 Leasehold improvements $ 32,852 $ 29,501 Computer equipment 21,522 18,369 Furniture and fixtures 6,127 5,211 Computer software purchased 6,083 5,847 Computer software developed for internal use 12,069 721 Fixed assets in progress 772 2,173 79,425 61,822 Less: accumulated depreciation and amortization (41,144 ) (30,503 ) Property and equipment, net $ 38,281 $ 31,319

GOODWILL AND OTHER INTANGIBLE35

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
Changes in Carrying Amount of Goodwill	The following table presents the changes in the carrying amount of goodwill: Year Ended December 31, (in thousands) 2016 2015 2014 Balance as of January 1, $ 46,776 $ 46,860 $ 43,469 Goodwill acquired during the year 26,689 — 3,431 Translation adjustments (301 ) (84 ) (40 ) Balance as of December 31, $ 73,164 $ 46,776 $ 46,860
Schedule of Amortizable Intangible Assets	Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives. (in thousands) Range of Cost Accumulated Net book December 31, 2016 Customer related intangibles 4-10 years $ 63,091 $ (37,573 ) $ 25,518 Technology 3-10 58,942 (40,269 ) 18,673 Other intangibles 3 years 5,361 (5,361 ) — Total $ 127,394 $ (83,203 ) $ 44,191 December 31, 2015 Customer related intangibles 4-9 $ 49,546 $ (30,465 ) $ 19,081 Technology 3-9 48,342 (34,282 ) 14,060 Other intangibles 3 years 5,361 (5,084 ) 277 Total $ 103,249 $ (69,831 ) $ 33,418
Amortization Expense of Acquired Intangibles	Amortization expense of acquired intangibles was reflected in the Company’s consolidated statements of operations as follows: Year Ended December 31, (in thousands) 2016 2015 2014 Amortization expense: Cost of revenue $ 5,986 $ 5,392 $ 6,017 Selling and marketing 7,145 6,127 6,022 General and administrative 277 683 1,770 Total amortization expense $ 13,408 $ 12,202 $ 13,809
Estimated Future Amortization Expense	As of December 31, 2016, future estimated amortization expense is as follows: ( in thousands) Future estimated 2017 $ 12,334 2018 11,334 2019 5,542 2020 2,646 2021 2,623 2022 and thereafter 9,712 $ 44,191

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2016
Schedule of Accrued Expenses	December 31, (in thousands ) 2016 2015 Partner commissions $ 2,199 $ 3,319 Other taxes 9,031 10,070 Employee reimbursable expenses 1,624 1,426 Dividends payable 2,298 2,297 Professional services contractor fees 6,550 4,580 Self-insurance health and dental claims 2,182 2,129 Professional fees 3,654 2,937 Short-term deferred rent 1,770 1,600 Income taxes payable 1,391 5,464 Acquisition-related expenses and merger consideration 290 834 Restructuring 105 394 Marketing and sales program expenses 1,508 1,397 Cloud hosting expenses 83 1,370 Foreign currency forward contracts 883 1,052 Fixed assets in progress 855 1,632 Other 2,328 2,267 $ 36,751 $ 42,768

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	12 Months Ended
	Dec. 31, 2016
Schedule of Deferred Revenue	December 31, (in thousands ) 2016 2015 Term license $ 15,843 $ 19,792 Perpetual license 23,189 21,094 Maintenance 112,397 95,262 Cloud 13,604 8,948 Services 10,614 10,777 Current deferred revenue 175,647 155,873 Perpetual license 7,909 12,389 Maintenance 1,802 2,227 Cloud 1,278 1,189 Long-term deferred revenue 10,989 15,805 $ 186,636 $ 171,678

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2016
Future Minimum Rental Payments for Operating Leases	As of December 31, 2016, the Company’s future minimum rental payments required under operating leases with noncancellable terms in excess of one year were as follows: (in thousands) For the calendar year Operating Leases (1) 2017 $ 13,604 2018 13,632 2019 12,039 2020 11,116 2021 9,483 2022 & Thereafter 17,735 $ 77,609 (1) Operating leases include future minimum rent payments, net of estimated sublease income for facilities that the Company has vacated pursuant to its restructuring activities.

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Repurchase Activity under Repurchase Programs	Year Ended December 31, 2016 2015 2014 (Dollars in thousands) Shares Amount Shares Amount Shares Amount Prior year authorizations at January 1, $ 40,534 $ 13,284 $ 14,433 Authorizations 25,879 50,000 14,410 Repurchases paid 1,078,251 (27,028 ) 944,398 (22,530 ) 756,143 (15,264 ) Repurchases unsettled — — 7,836 (220 ) 13,983 (295 ) Authorized dollars remaining as of December 31, $ 39,385 $ 40,534 $ 13,284

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2016
Stock-Based Compensation Expense Included in Consolidated Statements of Operations	The following table presents the stock-based compensation expense included in the Company’s consolidated statements of operations: Year ended December 31, (in thousands) 2016 2015 2014 Stock-based compensation expense: Cost of revenues $ 11,459 $ 8,772 $ 5,335 Operating expenses 29,362 21,282 13,870 Total stock-based compensation before tax 40,821 30,054 19,205 Income tax benefit (12,198 ) (8,098 ) (5,563 )
Weighted-Average Assumptions Used in Black-Scholes Option Valuation Model	The weighted-average assumptions used in the Black-Scholes option valuation model are as follows: Year ended December 31, 2016 2015 2014 Expected annual volatility (1) 40 % 45 % 47 % Expected term in years (2) 4.4 4.5 4.4 Risk-free interest rate (3) 1.21 % 1.34 % 1.33 % Expected annual dividend yield (4) 0.63 % 0.68 % 0.44 % (1) The expected annual volatility for each grant is determined based on the average of historical daily price changes of the Company’s common stock over a period of time which approximates the expected option term. (2) The expected option term for each grant is determined based on the historical exercise behavior of employees and post-vesting employment termination behavior. (3) The risk-free interest rate is based on the yield of U.S. Treasury securities with a maturity that is commensurate with the expected option term at the time of grant. (4) The expected annual dividend yield is based on the weighted-average of the dividend yield assumptions used for options granted during the applicable period. The expected annual dividend has historically been based on the expected dividend of $0.06 per share, per year ($0.015 per share, per quarter times 4 quarters), on a post-split basis, divided by the average stock price. On May 27, 2014, the Company announced an increase in its quarterly cash dividend from $0.015 to $0.03 per share. Thus, for grants made after this date, the expected annual dividend is based on the expected dividend of $0.12 per share, per year ($0.03 per share, per quarter times 4 quarters), divided by the average stock price.
Combined Stock Option Activity	The following table summarizes the combined stock option activity under the Company’s stock option plans for the year ended December 31, 2016: Shares (in thousands) Weighted-average Weighted-average Aggregate intrinsic Options outstanding as of January 1, 2016 6,563 $ 16.01 Granted 2,691 25.72 Exercised (1,275 ) 14.41 Forfeited/Cancelled (516 ) 20.85 Options outstanding as of December 31, 2016 7,463 $ 19.45 Vested and expected to vest as December 31, 2016 6,154 $ 18.99 7.3 $ 104,655 Exercisable as of December 31, 2016 2,696 $ 14.21 5.7 $ 58,741
Combined Restricted Stock Units Activity	The weighted-average grant-date fair value for RSUs granted in 2016, 2015, and 2014 was $25.54, $20.49, and $19.88, respectively. The following table summarizes the combined RSU activity for periodic grants and the CICP under the 2004 Plan for the year ended December 31, 2016: Shares Weighted- Grant-Date Aggregate Nonvested as of January 1, 2016 2,607 $ 20.03 Granted 1,929 25.54 Vested (1,071 ) 19.41 Forfeited (304 ) 22.22 Nonvested as of December 31, 2016 3,161 $ 23.39 $ 113,824 Expected to vest as of December 31, 2016 2,350 $ 23.55 $ 84,592

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Components of Income before Provision for Income Taxes	The components of income before provision for income taxes are as follows for the years ended December 31: (in thousands) 2016 2015 2014 Domestic $ 37,329 $ 63,124 $ 36,485 Foreign (2,127 ) (2,619 ) 11,509 Total income before provision $ 35,202 $ 60,505 $ 47,994
Components of Provision for Income Taxes	The components of the provision for income taxes are as follows for the years ended December 31: (in thousands) 2016 2015 2014 Current: Federal $ 6,741 $ 17,864 $ 22,488 State 2,963 4,565 2,952 Foreign 4,322 3,853 3,195 Total current provision 14,026 26,282 28,635 Deferred: Federal (1,120 ) 2,075 (11,972 ) State (480 ) (466 ) (1,209 ) Foreign (4,210 ) (3,708 ) (715 ) Total deferred benefit (5,810 ) (2,099 ) (13,896 ) Total provision $ 8,216 $ 24,183 $ 14,739
Reconciliation of Effective Income Tax Rate from Statutory Federal Income Tax Rate	The effective income tax rate differed from the statutory federal income tax rate due to the following: 2016 2015 2014 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % Valuation allowance 0.3 0.7 0.5 Transaction costs 1.1 — — State income taxes, net of federal benefit and tax credits 3.7 4.6 1.8 Permanent differences 2.2 1.1 1.3 Domestic production activities (3.2 ) (3.1 ) (4.9 ) Federal research and experimentation credits (2.3 ) (1.2 ) (1.7 ) Tax effects of foreign activities 5.2 2.0 (2.2 ) Tax-exempt (0.3 ) (0.1 ) (0.1 ) Provision to return adjustments 0.3 0.3 — Non-deductible 6.2 3.3 2.5 Provision for uncertain tax positions (2.3 ) (2.6 ) (0.7 ) Excess tax benefits related to share-based compensation (20.1 ) — — Other (2.5 ) — (0.8 ) Effective income tax rate 23.3 % 40.0 % 30.7 %
Components of Net Deferred Tax Assets and Liabilities	Significant components of net deferred tax assets and liabilities are as follows: (in thousands) 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 69,307 $ 65,601 Accruals and reserves 34,021 30,322 Software revenue 6,559 6,608 Depreciation 3,593 5,327 Tax credit carryforwards 8,094 6,686 Other 19 58 Total deferred tax assets 121,593 114,602 Less valuation allowances (34,054 ) (35,509 ) Total net deferred tax assets $ 87,539 $ 79,093 Deferred tax liabilities: Intangibles $ (17,641 ) $ (13,363 ) Total deferred tax liabilities (17,641 ) (13,363 ) Total net deferred income taxes $ 69,898 $ 65,730
Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits	A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: (in thousands) 2016 2015 2014 Balance as of January 1, $ 23,972 $ 43,396 $ 40,929 Additions based on tax positions related to the current year 80 817 4,041 Additions for tax positions of prior years 110 183 285 (Reductions) Additions for acquired uncertain tax benefits 387 — (716 ) Reductions for tax positions of prior years (1,541 ) (19,855 ) (853 ) Reductions for a lapse of the applicable statute of limitations (337 ) (569 ) (290 ) Balance as of December 31, $ 22,671 $ 23,972 $ 43,396

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Basic and Diluted Earnings (Loss) Per Share	Year Ended December 31, (in thousands, except per share amounts) 2016 2015 2014 Basic Net income $ 26,986 $ 36,322 $ 33,255 Weighted-average common shares outstanding 76,343 76,507 76,327 Earnings per share, basic $ 0.35 $ 0.47 $ 0.44 Diluted Net income $ 26,986 $ 36,322 $ 33,255 Weighted-average common shares outstanding 76,343 76,507 76,327 Weighted-average effect of dilutive securities: Stock options 2,025 1,601 1,698 RSUs 1,364 935 506 Effect of assumed exercise of stock options and RSUs 3,389 2,536 2,204 Weighted-average common shares outstanding, assuming dilution 79,732 79,043 78,531 Earnings per share, diluted $ 0.34 $ 0.46 $ 0.42 Outstanding options and RSUs excluded as impact would be antidilutive 322 182 98

GEOGRAPHIC INFORMATION AND MA43

GEOGRAPHIC INFORMATION AND MAJOR CLIENTS (Tables)	12 Months Ended
	Dec. 31, 2016
Revenue by Geographic Area	The Company’s international revenue is from clients based outside of the U.S. The Company derived its revenue from the following geographic areas: Year ended December 31, (Dollars in thousands) 2016 2015 2014 U.S. $ 430,562 57 % $ 379,936 56 % $ 327,154 55 % Other Americas 59,160 8 % 57,892 8 % 32,642 6 % United Kingdom 101,733 14 % 96,314 14 % 93,923 16 % Other EMEA (1) 92,540 12 % 87,240 13 % 87,050 15 % Asia Pacific 66,271 9 % 61,313 9 % 49,235 8 % $ 750,266 100 % $ 682,695 100 % $ 590,004 100 % (1) Includes Europe, the Middle East and Africa, but excludes the United Kingdom (“Other EMEA”).
Long-Lived Assets by Geographic Area	Long-lived assets related to the Company’s U.S. and international operations were as follows: December 31, (Dollars in thousands) 2016 2015 U.S. $ 27,993 73 % $ 17,600 56 % India 7,158 19 % 10,530 34 % International, other 3,130 8 % 3,189 10 % $ 38,281 100 % $ 31,319 100 %
Trade Receivables of Major Clients	There were no clients accounting for 10% or more of the Company’s total revenue in 2016, 2015, and 2014. There was one client accounting for 10% or more of the Company’s total outstanding trade receivables as of December 31, 2015, as listed below. The Company’s financial services, healthcare, and insurance clients as a group represent a significant amount of the Company’s revenues and receivables. However, the Company determined this concentration did not have a material impact on its allowance for sales credit memos as of December 31, 2016. December 31, (Dollars in thousands) 2016 2015 Trade receivables, net of allowances $ 265,028 $ 211,846 Client A — % 10 %

SELECTED QUARTERLY INFORMATIO44

SELECTED QUARTERLY INFORMATION (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Selected Quarterly Information	2016 (1) (in thousands, except per share amounts) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenue $ 178,858 $ 188,996 $ 182,802 $ 199,610 Gross profit 122,348 128,896 122,365 137,401 Income from operations 14,125 6,360 5,498 11,776 Income before provision for income taxes 13,493 5,498 5,515 10,696 Net income 10,400 4,536 3,301 8,749 Net earnings per share, basic $ 0.14 $ 0.06 $ 0.04 $ 0.11 Net earnings per share, diluted $ 0.13 $ 0.06 $ 0.04 $ 0.11 (1) The Company elected to early adopt ASU 2016-09 2016-09 2015 (in thousands, except per share amounts) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenue $ 153,918 $ 162,019 $ 162,403 $ 204,355 Gross profit 103,859 107,238 106,962 151,190 Income from operations 11,909 5,250 10,711 36,791 Income before provision for income taxes 9,260 4,501 10,246 36,498 Net income 5,935 3,104 6,325 20,958 Net earnings per share, basic $ 0.08 $ 0.04 $ 0.08 $ 0.27 Net earnings per share, diluted $ 0.08 $ 0.04 $ 0.08 $ 0.26

Significant Accounting Polici45

Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended			12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 01, 2016
Significant Accounting Policies [Line Items]
Computer software developed for internal use into service				$ 11,300,000
Computer software capitalized during period				10,200,000	$ 1,100,000	$ 0
Impairments recognized on assets				0	0	0
Acquisition-related costs				$ 2,616,000	89,000	488,000
More-likely-than-not benefit likelihood percentage being realized upon ultimate settlement with taxing authority resulting from sustainability of tax examination				50.00%
Advertising costs				$ 8,900,000	9,800,000	1,400,000
Reduction to its provision for income taxes	$ 2,214,000	$ 962,000	$ 3,093,000	8,216,000	24,183,000	14,739,000
Cumulative-effect adjustment from adoption of ASU 2016-09				321,000
Long-term deferred income tax assets				69,898,000	65,730,000
Accounting Standards Update 2016-09
Significant Accounting Policies [Line Items]
Reduction to its provision for income taxes				$ (6,700,000)
Excess tax benefits from operating activities					(5,300,000)	(3,400,000)
Excess tax benefits from financing activities					5,300,000	$ 3,400,000
Long-term deferred income tax assets							$ 321,000
Reclassification Adjustment | Accounting Standards Update 2015-17
Significant Accounting Policies [Line Items]
Long-term deferred income tax assets					12,400,000
Deferred income taxes					$ (12,400,000)
Equipment
Significant Accounting Policies [Line Items]
Property and equipment, average useful life, years				3 years
Furniture and fixtures
Significant Accounting Policies [Line Items]
Property and equipment, average useful life, years				5 years
Maximum | Capitalized Computer Software
Significant Accounting Policies [Line Items]
Property and equipment, average useful life, years				5 years
Maximum | Foreign Exchange Forward
Significant Accounting Policies [Line Items]
Term of derivative contracts				6 months
Minimum | Capitalized Computer Software
Significant Accounting Policies [Line Items]
Property and equipment, average useful life, years				3 years
Professional Services Revenues | Maximum
Significant Accounting Policies [Line Items]
Deferred revenue, period of recognition				4 months
Software Licenses | Maximum
Significant Accounting Policies [Line Items]
Term of license agreements				5 years
Software Licenses | Minimum
Significant Accounting Policies [Line Items]
Term of license agreements				3 years
Maintenance
Significant Accounting Policies [Line Items]
Deferred revenue, period of recognition				1 year
Retained Earnings
Significant Accounting Policies [Line Items]
Cumulative-effect adjustment from adoption of ASU 2016-09				$ 321,000
Retained Earnings | Accounting Standards Update 2016-09
Significant Accounting Policies [Line Items]
Cumulative-effect adjustment from adoption of ASU 2016-09							$ 321,000

Adjustments to Unaudited Select

Adjustments to Unaudited Selected Quarterly Data Previously Reported Resulted from Adoption of New Standards (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended												6 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2016	[1]	Sep. 30, 2016		Jun. 30, 2016		Mar. 31, 2016		Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Unaudited condensed consolidated statements of operations data:
Income before provision for income taxes	$ 10,696		$ 5,515	[1]	$ 5,498	[1]	$ 13,493	[1]	$ 36,498	$ 10,246	$ 4,501	$ 9,260			$ 35,202	$ 60,505	$ 47,994
Provision for income taxes			2,214		962		3,093								8,216	24,183	14,739
Net income	$ 8,749		$ 3,301	[1]	$ 4,536	[1]	$ 10,400	[1]	$ 20,958	$ 6,325	$ 3,104	$ 5,935			$ 26,986	$ 36,322	$ 33,255
Effective tax rate			40.10%		17.50%		22.90%								23.30%	40.00%	30.70%
Earnings per share:
Basic	$ 0.11		$ 0.04	[1]	$ 0.06	[1]	$ 0.14	[1]	$ 0.27	$ 0.08	$ 0.04	$ 0.08			$ 0.35	$ 0.47	$ 0.44
Diluted	$ 0.11		$ 0.04	[1]	$ 0.06	[1]	$ 0.13	[1]	$ 0.26	$ 0.08	$ 0.04	$ 0.08			$ 0.34	$ 0.46	$ 0.42
Weighted-average number of common shares outstanding:
Diluted			79,548		79,422		79,235								79,732	79,043	78,531
Unaudited condensed consolidated statements of cash flows data:
Net cash provided by operating activities							$ 10,040						$ 11,569	$ 20,556	$ 39,874	$ 67,803	$ 103,276
Net cash used in financing activities							(19,822)						(31,666)	(43,031)	$ (51,716)	$ (40,659)	$ (27,419)
As Reported
Unaudited condensed consolidated statements of operations data:
Income before provision for income taxes			$ 5,515		$ 5,498		13,493
Provision for income taxes			3,097		1,851		4,488
Net income			$ 2,418		$ 3,647		$ 9,005
Effective tax rate			56.20%		33.70%		33.30%
Earnings per share:
Basic			$ 0.03		$ 0.05		$ 0.12
Diluted			$ 0.03		$ 0.05		$ 0.11
Weighted-average number of common shares outstanding:
Diluted			79,082		78,969		78,878
Unaudited condensed consolidated statements of cash flows data:
Net cash provided by operating activities							$ 8,642						9,299	17,396
Net cash used in financing activities							$ (18,424)						$ (29,396)	$ (39,871)
[1]	The Company elected to early adopt ASU 2016-09 in the fourth quarter of 2016, which requires, among other things, excess tax benefits to be recorded as a reduction of the provision for income taxes in the consolidated statement of operations, whereas they were previously recognized in equity. The Company is required to reflect any adoption adjustments as of January 1, 2016, the beginning of the annual period that includes the period of adoption. As such, certain information above includes the impact of the ASU 2016-09 adoption. See Note 2 "Significant Accounting Policies-New accounting pronouncements" for additional information related to this adoption.

Schedule of Marketable Securiti

Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 63,356	$ 126,257
Unrealized Gains	1	9
Unrealized Losses	(190)	(214)
Fair Value	63,167	126,052
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	36,746	57,394
Unrealized Gains		7
Unrealized Losses	(139)	(66)
Fair Value	36,607	57,335
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	26,610	66,960
Unrealized Gains	1	2
Unrealized Losses	(51)	(147)
Fair Value	$ 26,560	66,815
Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,903
Unrealized Losses		(1)
Fair Value		$ 1,902

Marketable Securities - Additio

Marketable Securities - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Weighted-average remaining maturity period of marketable debt securities, months	14 months
Minimum
Schedule of Available-for-sale Securities [Line Items]
Remaining maturities of marketable debt securities	2017-03
Maximum
Schedule of Available-for-sale Securities [Line Items]
Remaining maturities of marketable debt securities	2019-08

Derivative Instruments - Additi

Derivative Instruments - Additional Information (Detail) - Foreign Exchange Forward - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Derivative outstanding			$ 0
Notional amount	$ 128,400,000	$ 32,300,000

Fair Value of Company Outstandi

Fair Value of Company Outstanding Forward Contracts (Detail) - Foreign Exchange Forward - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accrued expenses
Derivative [Line Items]
Liability Derivatives	$ 883	$ 1,052
Other current assets
Derivative [Line Items]
Asset Derivatives	$ 628	$ 48

Forward Contracts Outstanding w

Forward Contracts Outstanding with Total Notional Values (Detail) - Foreign Exchange Forward € in Thousands, £ in Thousands, AUD in Thousands, $ in Thousands	Dec. 31, 2016USD ($)	Dec. 31, 2016AUD	Dec. 31, 2016EUR (€)	Dec. 31, 2016GBP (£)	Dec. 31, 2015USD ($)	Dec. 31, 2015AUD	Dec. 31, 2015EUR (€)
Euro Member Countries, Euros
Derivative [Line Items]
Notional amount | €			€ 29,820				€ 14,900
British Pounds
Derivative [Line Items]
Notional amount | £				£ 6,440
Australian Dollar
Derivative [Line Items]
Notional amount | AUD		AUD 22,010				AUD 9,100
United States of America, Dollars
Derivative [Line Items]
Notional amount | $	$ 73,125				$ 9,400

Change in Fair Value of Forward

Change in Fair Value of Forward Contracts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss from the change in the fair value of forward contracts included in other expense, net	$ (5,643)	$ (1,047)	$ (532)
Foreign currency transaction gains (losses) from the remeasurement of foreign currency assets and liabilities	$ 2,247	$ (4,168)	$ (3,769)

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of transfers between Level 1 and Level 2	$ 0	$ 0
Impairments recognized on assets	0	0	$ 0
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairments recognized on assets	$ 0	$ 0	$ 0

Assets and Liabilities Measured

Assets and Liabilities Measured at Fair Value (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value Assets
Total marketable securities	$ 63,167	$ 126,052
Foreign currency forward contracts
Fair Value Liabilities
Foreign currency forward contracts	883	1,052
Fair Value Assets
Foreign currency forward contracts	628	48
Money Market Funds
Fair Value Assets
Money market funds	458	573
Municipal bonds
Fair Value Assets
Total marketable securities	36,607	57,335
Corporate bonds
Fair Value Assets
Total marketable securities	26,560	66,815
Certificates of Deposit
Fair Value Assets
Total marketable securities		1,902
Level 1 | Money Market Funds
Fair Value Assets
Money market funds	458	573
Level 2
Fair Value Assets
Total marketable securities	63,167	126,052
Level 2 | Foreign currency forward contracts
Fair Value Liabilities
Foreign currency forward contracts	883	1,052
Fair Value Assets
Foreign currency forward contracts	628	48
Level 2 | Municipal bonds
Fair Value Assets
Total marketable securities	36,607	57,335
Level 2 | Corporate bonds
Fair Value Assets
Total marketable securities	$ 26,560	66,815
Level 2 | Certificates of Deposit
Fair Value Assets
Total marketable securities		$ 1,902

Schedule of Trade Accounts Rece

Schedule of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 269,154	$ 216,477
Allowance for sales credit memos	(4,126)	(4,631)
Total accounts receivable net	265,028	211,846
Trade accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	234,473	190,820
Unbilled accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 34,681	$ 25,657

Activity of Allowance for Sales

Activity of Allowance for Sales Credit Memos (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of year	$ 4,631	$ 1,540	$ 1,997
Provision for credit memos	3,290	8,005	2,164
Credit memos issued	(3,795)	(4,914)	(2,621)
Balance at end of year	$ 4,126	$ 4,631	$ 1,540

Property and Equipment (Detail)

Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 79,425	$ 61,822
Less: accumulated depreciation and amortization	(41,144)	(30,503)
Property and equipment, net	38,281	31,319
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	32,852	29,501
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	21,522	18,369
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,127	5,211
Computer Software Purchased
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,083	5,847
Computer software developed for internal use
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,069	721
Fixed assets in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 772	$ 2,173

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 11.2	$ 10.6	$ 9.3

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Apr. 11, 2016	Jan. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Purchase price of acquired company				$ 49,113	$ 1,671	$ 3,918
Cash acquired from acquisition						2,100
Direct and incremental expenses				2,616	89	488
Goodwill	$ 73,164			73,164	46,776	46,860	$ 43,469
Purchase price of acquired company					1,100	$ 6,300
Additional Cash
Business Acquisition [Line Items]
Purchase price of acquired company				300	$ 500
Final Cash Payment | Subsequent Event
Business Acquisition [Line Items]
Purchase price of acquired company			$ 300
OpenSpan, Inc.
Business Acquisition [Line Items]
Purchase price of acquired company		$ 48,800
Cash acquired from acquisition		1,800
Escrow deposit	7,400
Direct and incremental expenses				2,600
Goodwill	$ 26,700			$ 26,700
Acquired identifiable intangible assets		$ 24,300
Acquired identifiable intangible assets, weighted average useful life				9 years 8 months 12 days
OpenSpan, Inc. | Maximum
Business Acquisition [Line Items]
Deposited in escrow period		18 months

Goodwill and Other Intangible60

Goodwill and Other Intangible Assets - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016Segment
Goodwill and Other Intangible Assets [Line Items]
Number of reportable segment, customer engagement solutions	1
Number of operating segments	1

Changes in Carrying Amount of G

Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Line Items]
Balance as of January 1,	$ 46,776	$ 46,860	$ 43,469
Goodwill acquired during the year	26,689		3,431
Translation adjustments	(301)	(84)	(40)
Balance as of December 31,	$ 73,164	$ 46,776	$ 46,860

Schedule of Amortizable Intangi

Schedule of Amortizable Intangible Asset (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Other Intangible Assets [Line Items]
Cost	$ 127,394	$ 103,249
Accumulated Amortization	(83,203)	(69,831)
Net book value	44,191	33,418
Customer related intangibles
Goodwill and Other Intangible Assets [Line Items]
Cost	63,091	49,546
Accumulated Amortization	(37,573)	(30,465)
Net book value	25,518	19,081
Technology
Goodwill and Other Intangible Assets [Line Items]
Cost	58,942	48,342
Accumulated Amortization	(40,269)	(34,282)
Net book value	$ 18,673	$ 14,060
Other intangibles
Goodwill and Other Intangible Assets [Line Items]
Range of Useful Lives	3 years	3 years
Cost	$ 5,361	$ 5,361
Accumulated Amortization	$ (5,361)	(5,084)
Net book value		$ 277
Minimum | Customer related intangibles
Goodwill and Other Intangible Assets [Line Items]
Range of Useful Lives	4 years	4 years
Minimum | Technology
Goodwill and Other Intangible Assets [Line Items]
Range of Useful Lives	3 years	3 years
Maximum | Customer related intangibles
Goodwill and Other Intangible Assets [Line Items]
Range of Useful Lives	10 years	9 years
Maximum | Technology
Goodwill and Other Intangible Assets [Line Items]
Range of Useful Lives	10 years	9 years

Amortization Expense of Acquire

Amortization Expense of Acquired Intangibles (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Amortization expense:
Total amortization expense	$ 13,408	$ 12,202	$ 13,809
Cost of revenue
Amortization expense:
Total amortization expense	5,986	5,392	6,017
Selling and marketing
Amortization expense:
Total amortization expense	7,145	6,127	6,022
General and administrative
Amortization expense:
Total amortization expense	$ 277	$ 683	$ 1,770

Estimated Future Amortization E

Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Other Intangible Assets [Line Items]
2,017	$ 12,334
2,018	11,334
2,019	5,542
2,020	2,646
2,021	2,623
2022 and thereafter	9,712
Net book value	$ 44,191	$ 33,418

Schedule of Accrued Expenses (D

Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accrued expenses
Partner commissions	$ 2,199	$ 3,319
Other taxes	9,031	10,070
Employee reimbursable expenses	1,624	1,426
Dividends payable	2,298	2,297	$ 2,294
Professional services contractor fees	6,550	4,580
Self-insurance health and dental claims	2,182	2,129
Professional fees	3,654	2,937
Short-term deferred rent	1,770	1,600
Income taxes payable	1,391	5,464
Acquisition-related expenses and merger consideration	290	834
Restructuring	105	394
Marketing and sales program expenses	1,508	1,397
Cloud hosting expenses	83	1,370
Foreign currency forward contracts	883	1,052
Fixed assets in progress	855	1,632
Other	2,328	2,267
Total accrued expenses	$ 36,751	$ 42,768

Schedule of Deferred Revenue (D

Schedule of Deferred Revenue (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	$ 175,647	$ 155,873
Long-term deferred revenue	10,989	15,805
Total deferred revenue	186,636	171,678
Term license
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	15,843	19,792
Perpetual license
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	23,189	21,094
Long-term deferred revenue	7,909	12,389
Maintenance
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	112,397	95,262
Long-term deferred revenue	1,802	2,227
Cloud
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	13,604	8,948
Long-term deferred revenue	1,278	1,189
Services
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	$ 10,614	$ 10,777

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Operating lease expiration year	2,023
Tenant allowance	$ 9.4
Rent expense under operating leases	$ 13.4	$ 12.3	$ 12.5

Future Minimum Rental Payments

Future Minimum Rental Payments for Operating Leases (Detail) $ in Thousands	Dec. 31, 2016USD ($)	[1]
Operating Leases
2,017	$ 13,604
2,018	13,632
2,019	12,039
2,020	11,116
2,021	9,483
2022 & Thereafter	17,735
Total future minimum rental payments for operating leases	$ 77,609
[1]	Operating leases include future minimum rent payments, net of estimated sublease income for facilities that the Company has vacated pursuant to its restructuring activities.

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	May 18, 2016	May 27, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shareholders Equity [Line Items]
Preferred stock, shares authorized			1,000,000	1,000,000
Common stock, shares authorized			200,000,000	200,000,000
Common stock, par value			$ 0.01	$ 0.01
Common stock, shares issued			76,591,000	76,488,000
Common stock, shares outstanding			76,591,000	76,488,000
Aggregate amount of stock repurchases authorized			$ 195,000,000
Expiration date, current stock repurchase program	Jun. 30, 2017
Stock repurchase program, additional authorized amount, value			$ 25,879,000	$ 50,000,000	$ 14,410,000
Cash dividends declared, per share		$ 0.030	$ 0.12	$ 0.12	$ 0.105
Dividend payments to shareholders			$ 9,174,000	$ 9,194,000	$ 6,874,000
Maximum
Shareholders Equity [Line Items]
Stock repurchase program, additional authorized amount, value	$ 50,000,000
Post-Split Basis
Shareholders Equity [Line Items]
Cash dividends declared, per share		$ 0.015

Summary of Repurchase Activity

Summary of Repurchase Activity under Repurchase Programs (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock Repurchase Program [Line Items]
Repurchases paid, shares	1,078,251	944,398	756,143
Repurchases unsettled, shares		7,836	13,983
Prior year authorizations at January 1,	$ 40,534,000	$ 13,284,000	$ 14,433,000
Authorizations	25,879,000	50,000,000	14,410,000
Repurchases paid	(27,028,000)	(22,530,000)	(15,264,000)
Repurchases unsettled		(220,000)	(295,000)
Authorized dollars remaining as of December 31,	$ 39,385,000	$ 40,534,000	$ 13,284,000

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail)	May 18, 2016	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / shares	Dec. 31, 2014USD ($)$ / shares	Jun. 30, 2016USD ($)shares	Jul. 31, 2011shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option term		10 years
Stock-based compensation arrangement vesting period, in years		5 years
Shares remaining for issuance for future equity grants		10,230,000
2006 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized		1,000,000
Stock price percentage of fair market value		85.00%
Stock purchase price percentage on completion date of offering period		95.00%
Aggregate number of shares issued under plan		351,000
Shares remaining for issuance for future equity grants		649,000
Corporate Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of common stock closing price determine RSU grants for employees		85.00%
2004 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of common stock grantable to non-employee directors | $		$ 20,000	$ 119,000	$ 95,000
Number of shares authorized					30,000,000
Number of shares outstanding		10,597,000
Shares remaining for issuance for future equity grants		9,581,000
2004 Long-Term Incentive Plan | As Reported
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized						24,000,000
Common stock split, conversion ratio				2
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued		1,154,000
Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued		27,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of options granted, per share | $ / shares		$ 8.31	$ 7.62	$ 7.58
Aggregate intrinsic value of options exercised | $		$ 19,900,000	$ 18,600,000	$ 13,200,000
Closing price of common stock | $ / shares		$ 36
Unrecognized stock-based compensation expense | $		$ 14,500,000
Weighted-average period of recognition of unrecognized stock-based compensation expense (in years)		2 years 2 months 12 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted		1,929,000
Closing price of common stock | $ / shares		$ 36
Unrecognized stock-based compensation expense | $		$ 27,800,000
Weighted-average period of recognition of unrecognized stock-based compensation expense (in years)		2 years 1 month 6 days
Weighted-average grant-date fair value of stock units granted | $ / shares		$ 25.54	$ 20.49	$ 19.88
Stock units, period of vesting		5 years
RSUs granted in connection with the 2016 CICP		225,000
Restricted stock units, fair value | $		$ 29,200,000	$ 14,900,000	$ 8,000,000
RSUs | Vesting one year from the grant date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage of stock units		20.00%
RSUs | Vesting quarterly thereafter
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage of stock units		80.00%
RSUs | Corporate Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation percentage of target incentive compensation eligible to be elected and received by employees		50.00%
RSU expected vesting date		2017-03
RSUs | Corporate Incentive Compensation Plan | Vesting in March 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage of stock units		100.00%
RSUs | Non-employee directors | 2004 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted		36,000
Value of RSUs granted to non-employee directors | $		$ 961,000
RSUs | Non-employee directors | 2004 Long-Term Incentive Plan | Vesting quarterly thereafter
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage of stock units	25.00%
RSUs | Non-employee directors | 2004 Long-Term Incentive Plan | Vesting on the date of the annual meeting of stockholders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage of stock units	25.00%
RSUs | Non-employee directors | 2004 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of annual common stock grantable to non-employee directors | $					$ 500,000

Stock Based Compensation Expens

Stock Based Compensation Expense Included in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 40,821	$ 30,054	$ 19,205
Income tax benefit	(12,198)	(8,098)	(5,563)
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	11,459	8,772	5,335
Operating Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 29,362	$ 21,282	$ 13,870

Weighted Average Assumptions us

Weighted Average Assumptions used in Black Scholes Option Valuation Model (Detail)		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Expected annual volatility	[1]	40.00%	45.00%	47.00%
Expected term in years	[2]	4 years 4 months 24 days	4 years 6 months	4 years 4 months 24 days
Risk-free interest rate	[3]	1.21%	1.34%	1.33%
Expected annual dividend yield	[4]	0.63%	0.68%	0.44%
[1]	The expected annual volatility for each grant is determined based on the average of historical daily price changes of the Company's common stock over a period of time which approximates the expected option term.
[2]	The expected option term for each grant is determined based on the historical exercise behavior of employees and post-vesting employment termination behavior.
[3]	The risk-free interest rate is based on the yield of U.S. Treasury securities with a maturity that is commensurate with the expected option term at the time of grant.
[4]	The expected annual dividend yield is based on the weighted-average of the dividend yield assumptions used for options granted during the applicable period. The expected annual dividend has historically been based on the expected dividend of $0.06 per share, per year ($0.015 per share, per quarter times 4 quarters), on a post-split basis, divided by the average stock price. On May 27, 2014, the Company announced an increase in its quarterly cash dividend from $0.015 to $0.03 per share. Thus, for grants made after this date, the expected annual dividend is based on the expected dividend of $0.12 per share, per year ($0.03 per share, per quarter times 4 quarters), divided by the average stock price.

Weighted Average Assumptions 74

Weighted Average Assumptions used in Black Scholes Option Valuation Model (Parenthetical) (Detail) - $ / shares	May 27, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Expected annual dividend rate per share		$ 0.12
Expected quarterly dividend rate per share		0.03
Cash dividends declared, per share	$ 0.030	0.12	$ 0.12	$ 0.105
Post-Split Basis
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Expected annual dividend rate per share		0.06
Expected quarterly dividend rate per share		$ 0.015
Cash dividends declared, per share	$ 0.015

Combined Stock Option Activity

Combined Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Number of shares
Beginning Balance | shares	6,563
Granted | shares	2,691
Exercised | shares	(1,275)
Forfeited/Cancelled | shares	(516)
Ending Balance | shares	7,463
Vested and expected to vest as December 31, 2016 | shares	6,154
Exercisable as of December 31, 2016 | shares	2,696
Weighted Average Exercise Price
Beginning Balance | $ / shares	$ 16.01
Granted | $ / shares	25.72
Exercised | $ / shares	14.41
Forfeited/Cancelled | $ / shares	20.85
Ending Balance | $ / shares	19.45
Vested and expected to vest as December 31, 2016 | $ / shares	18.99
Exercisable as of December 31, 2016 | $ / shares	$ 14.21
Weighted average remaining contractual term
Vested and expected to vest as December 31, 2016	7 years 3 months 18 days
Exercisable as of December 31, 2016	5 years 8 months 12 days
Aggregate Intrinsic Value
Vested and expected to vest as December 31, 2016 | $	$ 104,655
Exercisable as of December 31, 2016 | $	$ 58,741

Combined Restricted Stock Units

Combined Restricted Stock Units Activity (Detail) - RSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of shares
Nonvested as of January 1, 2016	2,607
Granted	1,929
Vested	(1,071)
Forfeited	(304)
Nonvested as of December 31, 2016	3,161	2,607
Expected to vest as of December 31, 2016	2,350
Weighted average grant date fair value
Nonvested as of January 1, 2016	$ 20.03
Granted	25.54	$ 20.49	$ 19.88
Vested	19.41
Forfeited	22.22
Nonvested as of December 31, 2016	23.39	$ 20.03
Expected to vest as of December 31, 2016	$ 23.55
Aggregate Intrinsic value
Nonvested as of December 31, 2016	$ 113,824
Expected to vest as of December 31, 2016	$ 84,592

Components of Income Before Pro

Components of Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	[1]	Sep. 30, 2016	[1]	Jun. 30, 2016	[1]	Mar. 31, 2016	[1]	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure Abstract
Domestic													$ 37,329	$ 63,124	$ 36,485
Foreign													(2,127)	(2,619)	11,509
Income before provision for income taxes	$ 10,696		$ 5,515		$ 5,498		$ 13,493		$ 36,498	$ 10,246	$ 4,501	$ 9,260	$ 35,202	$ 60,505	$ 47,994
[1]	The Company elected to early adopt ASU 2016-09 in the fourth quarter of 2016, which requires, among other things, excess tax benefits to be recorded as a reduction of the provision for income taxes in the consolidated statement of operations, whereas they were previously recognized in equity. The Company is required to reflect any adoption adjustments as of January 1, 2016, the beginning of the annual period that includes the period of adoption. As such, certain information above includes the impact of the ASU 2016-09 adoption. See Note 2 "Significant Accounting Policies-New accounting pronouncements" for additional information related to this adoption.

Components of Provision for Inc

Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Components Of Income Tax Expense Benefit [Line Items]
Current, Federal				$ 6,741	$ 17,864	$ 22,488
Current, State				2,963	4,565	2,952
Current, Foreign				4,322	3,853	3,195
Total current provision				14,026	26,282	28,635
Deferred, Federal				(1,120)	2,075	(11,972)
Deferred, State				(480)	(466)	(1,209)
Deferred, Foreign				(4,210)	(3,708)	(715)
Total deferred benefit				(5,810)	(2,099)	(13,896)
Total provision	$ 2,214	$ 962	$ 3,093	$ 8,216	$ 24,183	$ 14,739

Reconciliation of Effective Inc

Reconciliation of Effective Income Tax Rate from Statutory Federal Income Tax Rate (Detail)	3 Months Ended			12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Effective Income Tax Rate [Line Items]
Statutory federal income tax rate				35.00%	35.00%	35.00%
Valuation allowance				0.30%	0.70%	0.50%
Transaction costs				1.10%
State income taxes, net of federal benefit and tax credits				3.70%	4.60%	1.80%
Permanent differences				2.20%	1.10%	1.30%
Domestic production activities				(3.20%)	(3.10%)	(4.90%)
Federal research and experimentation credits				(2.30%)	(1.20%)	(1.70%)
Tax effects of foreign activities				5.20%	2.00%	(2.20%)
Tax-exempt income				(0.30%)	(0.10%)	(0.10%)
Provision to return adjustments				0.30%	0.30%
Non-deductible compensation				6.20%	3.30%	2.50%
Provision for uncertain tax positions				(2.30%)	(2.60%)	(0.70%)
Excess tax benefits related to share-based compensation				(20.10%)
Other				(2.50%)		(0.80%)
Effective income tax rate	40.10%	17.50%	22.90%	23.30%	40.00%	30.70%

Components of Net Deferred Tax

Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Components Of Deferred Income Tax Assets And Liabilities [Line Items]
Net operating loss carryforwards	$ 69,307	$ 65,601
Accruals and reserves	34,021	30,322
Software revenue	6,559	6,608
Depreciation	3,593	5,327
Tax credit carryforwards	8,094	6,686
Other	19	58
Total deferred tax assets	121,593	114,602
Less valuation allowances	(34,054)	(35,509)
Total net deferred tax assets	87,539	79,093
Intangibles	(17,641)	(13,363)
Total deferred tax liabilities	(17,641)	(13,363)
Total net deferred income taxes	$ 69,898	$ 65,730

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 01, 2016	Dec. 31, 2013
Income Tax Contingency [Line Items]
Valuation allowance, net increase (decrease)				$ 1,500
Deferred Tax Assets, Operating Loss Carry forwards, State and Local				300
Reduction of income tax provision due to tax holidays				$ 1,000	$ 900	$ 800
Tax holiday expiration date				2,022
Net income per share of the benefit tax holiday				$ 0.01	$ 0.01	$ 0.01
Cumulative-effect adjustment from adoption of ASU 2016-09				$ 321
Long-term deferred income tax assets				69,898	$ 65,730
Reduction to its provision for income taxes	$ 2,214	$ 962	$ 3,093	8,216	24,183	$ 14,739
Undistributed earnings of foreign subsidiaries				33,700
Unrecognized Tax Benefits				22,671	23,972	43,396		$ 40,929
Unrecognized tax benefits that would decrease effective tax rate if recognized				1,500
Expected changes in unrecognized tax benefits in next 12 months that would reduce effective tax rate				100
Recognized interest expense					(600)	300
Accrued interest and penalties				1,200	$ 1,200	$ 1,500
Retained Earnings
Income Tax Contingency [Line Items]
Cumulative-effect adjustment from adoption of ASU 2016-09				321
Accounting Standards Update 2016-09
Income Tax Contingency [Line Items]
Long-term deferred income tax assets							$ 321
Reduction to its provision for income taxes				$ (6,700)
Accounting Standards Update 2016-09 | Retained Earnings
Income Tax Contingency [Line Items]
Cumulative-effect adjustment from adoption of ASU 2016-09							$ 321
Earliest Tax Year | State and Foreign Country Jurisdiction
Income Tax Contingency [Line Items]
Tax assessment year				2,010
Latest Tax Year | State and Foreign Country Jurisdiction
Income Tax Contingency [Line Items]
Tax assessment year				2,014
Foreign Exchange Rate Movements
Income Tax Contingency [Line Items]
Valuation allowance, net increase (decrease)				$ 2,400
State
Income Tax Contingency [Line Items]
Tax credits				900
Tax research and experimentation				$ 7,100
Tax credits expiration date				2017 through 2031
Foreign
Income Tax Contingency [Line Items]
Net operating losses				$ 23,800
OpenSpan, Inc.
Income Tax Contingency [Line Items]
Federal net operating losses, date through which is subject to annual limitations				2,036
Federal remaining net operating losses utilized in acquisition				$ 16,900
OpenSpan, Inc. | General Business Tax Credit Carryforward
Income Tax Contingency [Line Items]
Tax credits				900
Tax credit carry forward utilized in acquisition				400
OpenSpan, Inc. | Federal and State Net Operating Losses and Tax Credits
Income Tax Contingency [Line Items]
Valuation allowance, net increase (decrease)				900
OpenSpan, Inc. | Federal
Income Tax Contingency [Line Items]
Net operating losses				22,400
Net operating losses utilized in acquisition				20,200
OpenSpan, Inc. | State
Income Tax Contingency [Line Items]
Net operating losses				300
Net operating losses utilized in acquisition				$ 100
Antenna
Income Tax Contingency [Line Items]
Federal net operating losses, date through which is subject to annual limitations				2,031
Federal remaining net operating losses utilized in acquisition				$ 6,200
Antenna | Federal
Income Tax Contingency [Line Items]
Net operating losses				38,500
Antenna | Foreign
Income Tax Contingency [Line Items]
Net operating losses				$ 58,100
Chordiant Software, Inc.
Income Tax Contingency [Line Items]
Federal net operating losses, date through which is subject to annual limitations				2,029
Federal remaining net operating losses utilized in acquisition				$ 76,100
Chordiant Software, Inc. | Federal
Income Tax Contingency [Line Items]
Net operating losses				$ 101,900

Reconciliation of Beginning and

Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits [Line Items]
Balance as of January 1,	$ 23,972	$ 43,396	$ 40,929
Additions based on tax positions related to the current year	80	817	4,041
Additions for tax positions of prior years	110	183	285
(Reductions) Additions for acquired uncertain tax benefits	387		(716)
Reductions for tax positions of prior years	(1,541)	(19,855)	(853)
Reductions for a lapse of the applicable statute of limitations	(337)	(569)	(290)
Balance as of December 31,	$ 22,671	$ 23,972	$ 43,396

Summary of Basic and Diluted Ea

Summary of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	[1]	Sep. 30, 2016		Jun. 30, 2016		Mar. 31, 2016		Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earning per share reconciliation
Net income	$ 8,749		$ 3,301	[1]	$ 4,536	[1]	$ 10,400	[1]	$ 20,958	$ 6,325	$ 3,104	$ 5,935	$ 26,986	$ 36,322	$ 33,255
Weighted-average common shares outstanding													76,343	76,507	76,327
Earnings per share, basic	$ 0.11		$ 0.04	[1]	$ 0.06	[1]	$ 0.14	[1]	$ 0.27	$ 0.08	$ 0.04	$ 0.08	$ 0.35	$ 0.47	$ 0.44
Net income	$ 8,749		$ 3,301	[1]	$ 4,536	[1]	$ 10,400	[1]	$ 20,958	$ 6,325	$ 3,104	$ 5,935	$ 26,986	$ 36,322	$ 33,255
Weighted-average common shares outstanding													76,343	76,507	76,327
Effect of assumed exercise of stock options and RSUs													3,389	2,536	2,204
Weighted-average common shares outstanding, assuming dilution			79,548		79,422		79,235						79,732	79,043	78,531
Earnings per share, diluted	$ 0.11		$ 0.04	[1]	$ 0.06	[1]	$ 0.13	[1]	$ 0.26	$ 0.08	$ 0.04	$ 0.08	$ 0.34	$ 0.46	$ 0.42
Outstanding options and RSUs excluded as impact would be antidilutive													322	182	98
Stock Options
Earning per share reconciliation
Weighted-average effect of dilutive securities													2,025	1,601	1,698
RSUs
Earning per share reconciliation
Weighted-average effect of dilutive securities													1,364	935	506
[1]	The Company elected to early adopt ASU 2016-09 in the fourth quarter of 2016, which requires, among other things, excess tax benefits to be recorded as a reduction of the provision for income taxes in the consolidated statement of operations, whereas they were previously recognized in equity. The Company is required to reflect any adoption adjustments as of January 1, 2016, the beginning of the annual period that includes the period of adoption. As such, certain information above includes the impact of the ASU 2016-09 adoption. See Note 2 "Significant Accounting Policies-New accounting pronouncements" for additional information related to this adoption.

Geographic Information and Ma84

Geographic Information and Major Clients - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016CustomerSegmentUnit	Dec. 31, 2015Customer	Dec. 31, 2014Customer
Geographic information and major clients
Number of reportable segment, customer engagement solutions | Segment	1
Number of reporting unit | Unit	1
Clients accounting for 10% or more of total revenue or outstanding trade receivables	There were no clients accounting for 10% or more of the Company's total revenue in 2016, 2015, and 2014. There was one client accounting for 10% or more of the Company's total outstanding trade receivables as of December 31, 2015, as listed below.
Number of clients representing 10% or more of Company's total revenue	0	0	0
Number of clients representing 10% or more of Company's total outstanding trade receivables		1
Credit Concentration Risk | Total Revenue | Minimum
Geographic information and major clients
Concentration risk, percentage	10.00%	10.00%	10.00%
Credit Concentration Risk | Trade Receivables | Minimum
Geographic information and major clients
Concentration risk, percentage		10.00%

Revenue from International Clie

Revenue from International Clients by Geographic Areas (Detail) - USD ($) $ in Thousands		3 Months Ended												12 Months Ended
		Dec. 31, 2016	[1]	Sep. 30, 2016	[1]	Jun. 30, 2016	[1]	Mar. 31, 2016	[1]	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue		$ 199,610		$ 182,802		$ 188,996		$ 178,858		$ 204,355	$ 162,403	$ 162,019	$ 153,918	$ 750,266	$ 682,695	$ 590,004
Geographic revenue percentage														100.00%	100.00%	100.00%
U.S.
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue														$ 430,562	$ 379,936	$ 327,154
Geographic revenue percentage														57.00%	56.00%	55.00%
Other Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue														$ 59,160	$ 57,892	$ 32,642
Geographic revenue percentage														8.00%	8.00%	6.00%
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue														$ 101,733	$ 96,314	$ 93,923
Geographic revenue percentage														14.00%	14.00%	16.00%
Other EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue	[2]													$ 92,540	$ 87,240	$ 87,050
Geographic revenue percentage	[2]													12.00%	13.00%	15.00%
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue														$ 66,271	$ 61,313	$ 49,235
Geographic revenue percentage														9.00%	9.00%	8.00%
[1]	The Company elected to early adopt ASU 2016-09 in the fourth quarter of 2016, which requires, among other things, excess tax benefits to be recorded as a reduction of the provision for income taxes in the consolidated statement of operations, whereas they were previously recognized in equity. The Company is required to reflect any adoption adjustments as of January 1, 2016, the beginning of the annual period that includes the period of adoption. As such, certain information above includes the impact of the ASU 2016-09 adoption. See Note 2 "Significant Accounting Policies-New accounting pronouncements" for additional information related to this adoption.
[2]	Includes Europe, the Middle East and Africa, but excludes the United Kingdom ("Other EMEA").

Long Lived Assets by Geographic

Long Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Geographic Areas, Long-Lived Assets [Abstract]
Long-lived assets	$ 38,281	$ 31,319
Long-lived assets percentage	100.00%	100.00%
U.S.
Geographic Areas, Long-Lived Assets [Abstract]
Long-lived assets	$ 27,993	$ 17,600
Long-lived assets percentage	73.00%	56.00%
India
Geographic Areas, Long-Lived Assets [Abstract]
Long-lived assets	$ 7,158	$ 10,530
Long-lived assets percentage	19.00%	34.00%
International, other
Geographic Areas, Long-Lived Assets [Abstract]
Long-lived assets	$ 3,130	$ 3,189
Long-lived assets percentage	8.00%	10.00%

Trade Receivables of Major Clie

Trade Receivables of Major Clients (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2016
Revenue, Major Customer [Line Items]
Trade receivables, net of allowance	$ 211,846	$ 265,028
Credit Concentration Risk | Trade Receivables | Client A
Revenue, Major Customer [Line Items]
Concentration risk, percentage	10.00%

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Detail) - 401( k) Defined Contribution Retirement Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Contribution Plan Disclosure [Line Items]
Company contributions expense	$ 4.5	$ 4.1	$ 3.4
International Employees
Defined Contribution Plan Disclosure [Line Items]
Company contributions expense	$ 7.6	$ 6.4	$ 5.1

Selected Quarterly Informatio89

Selected Quarterly Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	[1]	Sep. 30, 2016	[1]	Jun. 30, 2016	[1]	Mar. 31, 2016	[1]	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information:
Revenue	$ 199,610		$ 182,802		$ 188,996		$ 178,858		$ 204,355	$ 162,403	$ 162,019	$ 153,918	$ 750,266	$ 682,695	$ 590,004
Gross profit	137,401		122,365		128,896		122,348		151,190	106,962	107,238	103,859	511,010	469,249	404,910
Income from operations	11,776		5,498		6,360		14,125		36,791	10,711	5,250	11,909	37,759	64,661	51,539
Income before provision for income taxes	10,696		5,515		5,498		13,493		36,498	10,246	4,501	9,260	35,202	60,505	47,994
Net income	$ 8,749		$ 3,301		$ 4,536		$ 10,400		$ 20,958	$ 6,325	$ 3,104	$ 5,935	$ 26,986	$ 36,322	$ 33,255
Net earnings per share, basic	$ 0.11		$ 0.04		$ 0.06		$ 0.14		$ 0.27	$ 0.08	$ 0.04	$ 0.08	$ 0.35	$ 0.47	$ 0.44
Net earnings per share, diluted	$ 0.11		$ 0.04		$ 0.06		$ 0.13		$ 0.26	$ 0.08	$ 0.04	$ 0.08	$ 0.34	$ 0.46	$ 0.42
[1]	The Company elected to early adopt ASU 2016-09 in the fourth quarter of 2016, which requires, among other things, excess tax benefits to be recorded as a reduction of the provision for income taxes in the consolidated statement of operations, whereas they were previously recognized in equity. The Company is required to reflect any adoption adjustments as of January 1, 2016, the beginning of the annual period that includes the period of adoption. As such, certain information above includes the impact of the ASU 2016-09 adoption. See Note 2 "Significant Accounting Policies-New accounting pronouncements" for additional information related to this adoption.