Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ultimate Software Group Inc | |
Entity Central Index Key | 1016125 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,580,220 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 |
UNAUDITED_CONDENSED_CONSOLIDAT
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $115,274 | $108,298 |
Investments in marketable securities | 7,447 | 7,862 |
Accounts receivable, net of allowance for doubtful accounts of $675 for 2015 and 2014 | 99,866 | 100,218 |
Prepaid expenses and other current assets | 36,666 | 34,788 |
Deferred tax assets, net | 983 | 965 |
Total current assets before funds held for clients | 260,236 | 252,131 |
Funds held for clients | 847,172 | 759,087 |
Total current assets | 1,107,408 | 1,011,218 |
Property and equipment, net | 96,652 | 86,595 |
Goodwill | 25,056 | 25,696 |
Investments in marketable securities | 2,651 | 2,294 |
Intangible assets, net | 6,203 | 6,774 |
Other assets, net | 22,779 | 20,611 |
Deferred tax assets, net | 40,556 | 37,110 |
Total assets | 1,301,305 | 1,190,298 |
Current liabilities: | ||
Accounts payable | 9,633 | 7,418 |
Accrued expenses | 34,645 | 30,941 |
Deferred revenue | 111,282 | 109,552 |
Capital lease obligations | 4,423 | 3,655 |
Other borrowings | 569 | 567 |
Total current liabilities before client fund obligations | 160,552 | 152,133 |
Client fund obligations | 847,172 | 759,087 |
Total current liabilities | 1,007,724 | 911,220 |
Deferred revenue | 131 | 153 |
Deferred rent | 2,609 | 2,368 |
Capital lease obligations | 4,724 | 3,359 |
Other borrowings | 300 | 400 |
Deferred income tax liability | 911 | 1,049 |
Total liabilities | 1,016,399 | 918,549 |
Stockholders’ equity: | ||
Series A Junior Participating Preferred Stock, $.01 par value, 500,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Preferred Stock, $.01 par value, 2,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common Stock, $.01 par value, 50,000,000 shares authorized, 32,907,753 and 32,722,864 shares issued and outstanding in 2015 and 2014, respectively | 329 | 327 |
Additional paid-in capital | 393,810 | 376,609 |
Accumulated other comprehensive loss | -5,605 | -3,590 |
Accumulated earnings | 41,088 | 36,928 |
Stockholders' equity before treasury stock | 429,622 | 410,274 |
Treasury stock, 4,253,626 and 4,216,626 shares, at cost, for 2015 and 2014, respectively | -144,716 | -138,525 |
Total stockholders’ equity | 284,906 | 271,749 |
Total liabilities and stockholders’ equity | $1,301,305 | $1,190,298 |
UNAUDITED_CONDENSED_CONSOLIDAT1
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Current Assets: | ||
Allowance for doubtful accounts | $675 | $675 |
Stockholders’ equity: | ||
Preferred Stock, par value | $0.01 | $0.01 |
Preferred Stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value | $0.01 | $0.01 |
Common Stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, shares issued | 32,907,753 | 32,722,864 |
Treasury Stock, shares | 4,253,626 | 4,216,626 |
Series A Junior Participating Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Preferred Stock, par value | $0.01 | $0.01 |
Preferred Stock, shares authorized | 500,000 | 500,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
UNAUDITED_CONDENSED_CONSOLIDAT2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Recurring | $118,886 | $97,418 |
Services | 25,768 | 23,208 |
License | 223 | 452 |
Total revenues | 144,877 | 121,078 |
Cost of revenues: | ||
Recurring | 32,740 | 26,954 |
Services | 24,318 | 22,074 |
License | 49 | 72 |
Total cost of revenues | 57,107 | 49,100 |
Gross profit | 87,770 | 71,978 |
Operating expenses: | ||
Sales and marketing | 40,763 | 28,829 |
Research and development | 21,398 | 19,720 |
General and administrative | 15,852 | 11,059 |
Total operating expenses | 78,013 | 59,608 |
Operating income | 9,757 | 12,370 |
Other income (expense): | ||
Interest and other expense | -115 | -66 |
Other income, net | 57 | 75 |
Total other income (expense), net | -58 | 9 |
Income before income taxes | 9,699 | 12,379 |
Provision for income taxes | -5,539 | -5,496 |
Net income | $4,160 | $6,883 |
Net income per share: | ||
Basic (in dollars per share) | $0.15 | $0.24 |
Diluted (in dollars per share) | $0.14 | $0.23 |
Weighted average shares outstanding: | ||
Basic (in shares) | 28,583 | 28,196 |
Diluted (in shares) | 29,567 | 29,309 |
UNAUDITED_CONDENSED_CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $4,160 | $6,883 |
Other comprehensive income (loss): | ||
Unrealized loss on foreign currency translation adjustments | 8 | 2 |
Unrealized loss on foreign currency translation adjustments | -2,020 | -837 |
Other comprehensive loss, before tax | -2,012 | -835 |
Income tax expense related to items of other comprehensive income | -3 | -2 |
Other comprehensive loss, before tax | -2,015 | -837 |
Comprehensive income | $2,145 | $6,046 |
UNAUDITED_CONDENSED_CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net Income | $4,160 | $6,883 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,246 | 4,242 |
Provision for doubtful accounts | 973 | 490 |
Non-cash stock-based compensation expense | 16,077 | 10,838 |
Income taxes | 5,243 | 5,261 |
Excess tax benefit from employee stock plan | -8,845 | -6,558 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -621 | 2,930 |
Prepaid expenses and other current assets | -1,878 | -2,204 |
Other assets | -2,168 | -253 |
Accounts payable | 2,215 | 2,347 |
Accrued expenses and deferred rent | 3,945 | 966 |
Deferred revenue | 1,708 | 638 |
Net cash provided by operating activities | 26,055 | 25,580 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -10,941 | -11,205 |
Maturities of marketable securities | -1,765 | -2,833 |
Maturities of marketable securities | 1,823 | 2,675 |
Net purchases of client funds securities | -88,085 | -448,926 |
Net cash used in investing activities | -98,968 | -460,289 |
Cash flows from financing activities: | ||
Repurchases of Common Stock | -6,191 | 0 |
Net proceeds from issuances of Common Stock | 1,569 | 2,295 |
Excess tax benefits from employee stock plan | 8,845 | 6,558 |
Shares acquired to settle employee tax withholding liability | -10,068 | -10,216 |
Principal payments on capital lease obligations | -1,184 | -919 |
Repayments of other borrowings | -98 | -293 |
Net increase in client fund obligations | 88,085 | 448,926 |
Net cash provided by financing activities | 80,958 | 446,351 |
Effect of exchange rate changes on cash | -1,069 | -356 |
Net increase in cash and cash equivalents | 6,976 | 11,286 |
Cash and cash equivalents, beginning of period | 108,298 | 79,794 |
Cash and cash equivalents, end of period | 115,274 | 91,080 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 91 | 73 |
Cash paid for taxes | 215 | 163 |
Non-cash investing and financing activities: | ||
Capital lease obligations to acquire new equipment | 3,317 | 1,709 |
Stock consideration adjustment recorded for acquisitions | 0 | -818 |
Stock based compensation for capitalized software | $780 | $238 |
Nature_of_Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations |
The Ultimate Software Group, Inc. and subsidiaries (“Ultimate,” “we,” “us” or “our”) is a leading provider of cloud-based human capital management (“HCM”). Ultimate's UltiPro software (“UltiPro”) is a comprehensive, easy-to-use solution delivered primarily over the Internet to organizations based in the United States and Canada, including those with global employees. UltiPro is designed to deliver the functionality businesses need to manage the complete employment life cycle from recruitment to retirement. We market our UltiPro solutions primarily to enterprise companies, which we define as companies with more than 1,500 employees, including those with 10,000 or more employees; mid-market companies, which we define as those having approximately 500-1,500 employees; and strategic market companies, which we define as those having 100-499 employees. UltiPro is marketed primarily through our enterprise, mid-market and strategic direct sales teams. |
Basis_of_Presentation_Consolid
Basis of Presentation, Consolidation and the Use of Estimates | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Consolidation and the Use of Estimates | Basis of Presentation, Consolidation and the Use of Estimates |
The accompanying unaudited condensed consolidated financial statements of Ultimate have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The information in this quarterly report should be read in conjunction with Ultimate’s audited consolidated financial statements and notes thereto included in Ultimate’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on February 27, 2015 (the “Form 10-K”). | |
The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in the opinion of Ultimate’s management, necessary for a fair presentation of the information for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results of operations for the three months ended March 31, 2015 are not necessarily indicative of operating results for the full fiscal year or for any future periods. | |
The unaudited condensed consolidated financial statements reflect the financial position and operating results of Ultimate and include its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | Summary of Significant Accounting Policies and Recent Accounting Pronouncements |
Summary of Significant Accounting Policies | |
Ultimate’s significant accounting policies discussed in Note 3 to its audited consolidated financial statements for the fiscal year ended December 31, 2014, included in the Form 10-K, have not significantly changed. | |
Fair Value of Financial Instruments | |
Ultimate's financial instruments, consisting of cash and cash equivalents, investments in marketable securities, funds held for clients and the related obligations, accounts receivable, accounts payable, capital lease obligations and other borrowings, approximated fair value (due to their relatively short maturity) as of March 31, 2015 and December 31, 2014. | |
Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) | |
2014-09, “Revenue from Contracts with Customers" ("ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for Ultimate on January 1, 2017 and early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method and have not determined the effect the standard will have on our ongoing financial reporting. | |
In April 2015, the FASB issued ASU 2015-05, “Customer's Accounting for Fees Paid in a Cloud Computing Arrangement" ("ASU 2015-05"), which requires that if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. Further, it requires that if a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 will not change GAAP for a customer’s accounting for service contracts. In addition, ASU 2015-05 supersedes paragraph 350-40-25-16. Consequently, all software licenses within the scope of subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. The new standard is effective for Ultimate on January 1, 2016 and early adoption is permitted. The standard permits the use of either the prospective or retrospective method. We are evaluating the effect that ASU 2015-05 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method and have not determined the effect the standard will have on our ongoing financial reporting. |
Investments_in_Marketable_Secu
Investments in Marketable Securities and Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Investments in Marketable Securities and Fair Value of Financial Instruments [Abstract] | ||||||||||||||||||||||||||||||||
Investments in Marketable Securities and Fair Value of Financial Instruments | Investments in Marketable Securities and Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||
We classify our investments in marketable securities with readily determinable fair values as available-for-sale. Available-for-sale securities consist of debt and equity securities not classified as trading securities or as securities to be held to maturity. Unrealized gains and losses on available-for-sale securities are reported as a net amount in accumulated other comprehensive loss in stockholders’ equity until realized. Realized gains and losses resulting from available-for-sale securities are included in other (expense) income, net, in the unaudited condensed consolidated statements of income. There were no significant reclassifications of realized gains and losses on available-for-sale securities to the unaudited condensed consolidated statements of income for the three months ended March 31, 2015 and March 31, 2014. | ||||||||||||||||||||||||||||||||
Gains and losses on the sale of available-for-sale securities are determined using the specific identification method. There was $1 thousand of unrealized loss and $10 thousand of unrealized loss, net of tax, on available-for-sale securities as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||||||||||
The amortized cost, net unrealized gain and fair value of our investments in marketable available-for-sale securities as of March 31, 2015 and December 31, 2014 are shown below (in thousands): | ||||||||||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||||||||||
Amortized Cost | Net Unrealized Gain/(Loss) | Fair Value | Amortized Cost | Net Unrealized Loss | Fair Value | |||||||||||||||||||||||||||
Corporate debentures and bonds | $ | 7,581 | $ | (3 | ) | $ | 7,578 | $ | 8,513 | $ | (9 | ) | $ | 8,504 | ||||||||||||||||||
Commercial paper | 300 | — | 300 | 600 | — | 600 | ||||||||||||||||||||||||||
U.S. Agency bonds | 254 | 1 | 255 | 255 | — | 255 | ||||||||||||||||||||||||||
U.S. Treasury bills | 798 | 1 | 799 | 798 | (1 | ) | 797 | |||||||||||||||||||||||||
Asset-Backed Securities | 1,166 | — | 1,166 | — | — | — | ||||||||||||||||||||||||||
Total investments | $ | 10,099 | $ | (1 | ) | $ | 10,098 | $ | 10,166 | $ | (10 | ) | $ | 10,156 | ||||||||||||||||||
The amortized cost and fair value of the marketable available-for-sale securities, by contractual maturity, as of March 31, 2015, are shown below (in thousands): | ||||||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||
Due in one year or less | $ | 7,449 | $ | 7,447 | ||||||||||||||||||||||||||||
Due after one year | 2,650 | 2,651 | ||||||||||||||||||||||||||||||
Total | $ | 10,099 | $ | 10,098 | ||||||||||||||||||||||||||||
We classify and disclose fair value measurements in one of the following three categories of fair value hierarchy: | ||||||||||||||||||||||||||||||||
Level 1 - | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities. | |||||||||||||||||||||||||||||||
Level 2 - | Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly. | |||||||||||||||||||||||||||||||
Level 3 - | Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||||||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. | ||||||||||||||||||||||||||||||||
Our assets that are measured by management at fair value on a recurring basis are generally classified within Level 1 or Level 2 of the fair value hierarchy. The types of instruments valued, based on quoted market prices in active markets, include certificates of deposit. Such instruments are generally classified within Level 1 of the fair value hierarchy. We did not have any transfers into and out of Level 1 or Level 2 during the three months ended March 31, 2015 or the twelve months ended December 31, 2014. No assets or investments were classified as Level 3 as of March 31, 2015 or as of December 31, 2014. | ||||||||||||||||||||||||||||||||
The types of instruments valued by management, based on quoted prices in less active markets, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency, include Ultimate’s corporate debentures and bonds, commercial paper, U.S. agency bonds and U.S. Treasury bills. Such instruments are generally classified within Level 2 of the fair value hierarchy. Ultimate uses consensus pricing, which is based on multiple pricing sources, to value its fixed income investments. The following table sets forth, by level within the fair value hierarchy, financial assets and liabilities accounted for at fair value as of March 31, 2015 and December 31, 2014 (in thousands): | ||||||||||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Corporate debentures and bonds | $ | 7,578 | $ | — | $ | 7,578 | $ | — | $ | 8,504 | $ | — | $ | 8,504 | $ | — | ||||||||||||||||
Commercial paper | 300 | — | 300 | — | 600 | — | 600 | — | ||||||||||||||||||||||||
U.S. Agency bonds | 255 | — | 255 | — | 255 | — | 255 | — | ||||||||||||||||||||||||
U.S. Treasury bills | 799 | — | 799 | — | 797 | — | 797 | — | ||||||||||||||||||||||||
Asset-Backed Securities | 1,166 | — | 1,166 | — | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 10,098 | $ | — | $ | 10,098 | $ | — | $ | 10,156 | $ | — | $ | 10,156 | $ | — | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis were presented in the unaudited condensed consolidated balance sheet as of March 31, 2015 and the audited consolidated balance sheet as of December 31, 2014 as short-term and long-term investments in marketable securities. There were no financial liabilities accounted for at fair value as of March 31, 2015 and December 31, 2014. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and Equipment | |||||||
Property and equipment are stated at cost, net of accumulated depreciation and amortization. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, which range from 2 to 20 years. Leasehold improvements and assets under capital leases are amortized over the shorter of the estimated useful life of the asset or the term of the lease, which range from 3 to 15 years. Maintenance and repairs are charged to expense when incurred; betterments are capitalized. Upon the sale or retirement of assets, the cost, accumulated depreciation and amortization are removed from the accounts and any gain or loss is recognized. | ||||||||
Property and equipment as of March 31, 2015 and December 31, 2014 consist of the following (in thousands): | ||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||
Computer equipment | $ | 127,724 | $ | 119,716 | ||||
Internal-use software | 55,691 | 49,464 | ||||||
Other property and equipment | 29,693 | 29,005 | ||||||
Property and equipment | 213,108 | 198,185 | ||||||
Less: accumulated depreciation and amortization | 116,456 | 111,590 | ||||||
Property and equipment, net | $ | 96,652 | $ | 86,595 | ||||
We capitalize computer software development costs related to software developed for internal use in accordance with Accounting Standards Codification ("ASC") Topic 350-40, Intangibles Goodwill and Other-Internal Use Software. During the three months ended March 31, 2015, we capitalized $6.5 million of computer software development costs related to a development project to be sold in the future as a cloud product only (the "Development Project"). There were $6.9 million of software development costs related to the Development Project which were capitalized in the three months ended March 31, 2014. These capitalized costs were from direct labor costs and third party consulting fees and are included with internal-use software in property and equipment in the unaudited condensed consolidated balance sheet and purchases of property and equipment in the unaudited condensed consolidated statements of cash flows. Internal-use software is amortized on a straight-line basis over its estimated useful life, commencing after the software development is substantially complete and the software is ready for its intended use. At each balance sheet date, we evaluate the useful lives of these assets and test for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. During the three months ended March 31, 2015, there was $0.3 million of amortization associated with a particular product module, Recruitment, of the Development Project which was ready for its intended use during the second quarter of 2014. The amortization of capitalized software (e.g., from the Recruitment release) is included in cost of recurring revenues. There was no amortization associated with the Development Project during the three months ended March 31, 2014. |
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ||||||||
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets | |||||||
Prepaid expenses and other current assets as of March 31, 2015 and December 31, 2014 consist of the following (in thousands): | ||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||
Prepaid commissions | $ | 19,321 | $ | 17,772 | ||||
Other prepaid expenses | 6,292 | 8,064 | ||||||
Other current assets | 11,053 | 8,952 | ||||||
Total prepaid expenses and other current assets | $ | 36,666 | $ | 34,788 | ||||
Goodwill_Intangible_Assets
Goodwill & Intangible Assets | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||||
Goodwill | ||||||||||||||||||
Goodwill represents the excess of cost over the net tangible and identifiable intangible assets of acquired businesses. Goodwill amounts are not amortized, but rather tested for impairment at least annually. Identifiable intangible assets acquired in business combinations are recorded based upon fair value at the date of acquisition and amortized over their estimated useful lives. | ||||||||||||||||||
The changes in the carrying value of goodwill since December 31, 2014 were as follows (in thousands): | ||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||
31-Mar-15 | ||||||||||||||||||
Goodwill, December 31, 2014 | $ | 25,696 | ||||||||||||||||
Translation adjustment (1) | (640 | ) | ||||||||||||||||
Goodwill, March 31, 2015 | $ | 25,056 | ||||||||||||||||
__________________________ | ||||||||||||||||||
(1) Represents the impact of the foreign currency translation of the portion of goodwill that is recorded by our Canadian subsidiary whose functional currency is also its local currency. Such goodwill is translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive loss. | ||||||||||||||||||
Intangible Assets | ||||||||||||||||||
The following tables present our acquired intangible assets as of the dates specified below (in thousands): | ||||||||||||||||||
March 31, 2015 | ||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Cumulative Translation Adjustment (1) | Net Carrying Amount | Weighted Average Remaining Useful Life | ||||||||||||||
Developed technology | $ | 5,200 | $ | (1,028 | ) | $ | (839 | ) | $ | 3,333 | 6 | |||||||
Customer relationships | 3,200 | (478 | ) | (8 | ) | 2,714 | 9 | |||||||||||
Non-compete agreements | 300 | (140 | ) | (4 | ) | 156 | 2 | |||||||||||
$ | 8,700 | $ | (1,646 | ) | $ | (851 | ) | $ | 6,203 | 7 | ||||||||
December 31, 2014 | ||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Cumulative Translation Adjustment (1) | Net Carrying Amount | Weighted Average Remaining Useful Life | ||||||||||||||
Developed technology | $ | 5,200 | $ | (874 | ) | $ | (537 | ) | $ | 3,789 | 6 | |||||||
Customer relationships | 3,200 | (392 | ) | (5 | ) | 2,803 | 9 | |||||||||||
Non-compete agreements | 300 | (115 | ) | (3 | ) | 182 | 2 | |||||||||||
$ | 8,700 | $ | (1,381 | ) | $ | (545 | ) | $ | 6,774 | 7 | ||||||||
____________________________ | ||||||||||||||||||
(1) Represents the impact of the foreign currency translation of the portion of acquired intangible assets that is recorded by our Canadian subsidiary whose functional currency is also its local currency. Such intangible assets are translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive income (loss). | ||||||||||||||||||
Acquired intangible assets are amortized over their estimated useful life, generally three to ten years, in a manner that reflects the pattern in which the economic benefits are consumed. Amortization expense for acquired intangible assets was $264 thousand for the three months ended March 31, 2015. There was $289 thousand amortization expense for acquired intangible assets for the three months ended March 31, 2014. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Earnings Per Share | Earnings Per Share | |||||
Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. | ||||||
The following table is a reconciliation of the shares of Ultimate's issued and outstanding $0.01 par value common stock ("Common Stock") used in the computation of basic and diluted net income per share for the three months ended March 31, 2015 and 2014 (in thousands): | ||||||
For the Three Months Ended March 31, | ||||||
2015 | 2014 | |||||
Basic weighted average shares outstanding | 28,583 | 28,196 | ||||
Effect of dilutive equity instruments | 984 | 1,113 | ||||
Diluted weighted average shares outstanding | 29,567 | 29,309 | ||||
Options to purchase shares of Common Stock and other stock-based awards outstanding which are not included in the calculation of diluted income per share because their impact is anti-dilutive | 140 | 82 | ||||
Foreign_Currency
Foreign Currency | 3 Months Ended |
Mar. 31, 2015 | |
Foreign Currency [Abstract] | |
Foreign Currency | Foreign Currency |
The financial statements of Ultimate’s foreign subsidiary, The Ultimate Software Group of Canada, Inc. (“Ultimate Canada”), have been translated into U.S. dollars. The functional currency of Ultimate Canada is the Canadian dollar. Assets and liabilities are translated into U.S. dollars at period-end exchange rates. Income and expenses are translated at the average exchange rate for the reporting period. The resulting translation adjustments, representing unrealized gains or losses, are included in accumulated other comprehensive loss, a component of stockholders’ equity. Realized gains and losses resulting from foreign exchange transactions are included in total operating expenses in the unaudited condensed consolidated statements of income. There were no significant reclassifications of realized gains and losses resulting from foreign exchange transactions to the unaudited condensed consolidated statements of income for the three months ended March 31, 2015 and March 31, 2014. | |
For the three months ended March 31, 2015, Ultimate had unrealized translation losses of $2.0 million. For the three months ended March 31, 2014, Ultimate had unrealized translation losses of $0.8 million. Included in accumulated other comprehensive loss, as presented in the accompanying unaudited condensed consolidated balance sheets, is a cumulative unrealized translation loss of $5.6 million as of March 31, 2015 and a cumulative unrealized translation loss of $3.6 million as of December 31, 2014. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||||
Summary of Plans | |||||||||||||||
Our Amended and Restated 2005 Equity and Incentive Plan (the “Plan”) authorizes the grant of options (“Options”) to non-employee directors, officers and employees of Ultimate to purchase shares of Common Stock. The Plan also authorizes the grant to such persons of restricted and non-restricted shares of Common Stock, stock appreciation rights, stock units and cash performance awards (collectively, together with the Options, the “Awards”). | |||||||||||||||
As of March 31, 2015, the aggregate number of shares of Common Stock that were available to be issued under all Awards granted under the Plan was 588,394 shares. | |||||||||||||||
The following table sets forth the non-cash stock-based compensation expense resulting from stock-based arrangements that were recorded in our unaudited condensed consolidated statements of income for the periods indicated (in thousands): | |||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||
Non-cash stock-based compensation expense: | |||||||||||||||
Cost of recurring revenues | $ | 1,427 | $ | 1,240 | |||||||||||
Cost of services revenues | 1,282 | 1,055 | |||||||||||||
Sales and marketing | 7,783 | 4,797 | |||||||||||||
Research and development | 1,248 | 1,270 | |||||||||||||
General and administrative | 4,337 | 2,476 | |||||||||||||
Total non-cash stock-based compensation expense | $ | 16,077 | $ | 10,838 | |||||||||||
Net cash proceeds from the exercise of Options were $1.6 million for the three months ended March 31, 2015, and $2.3 million for the three months ended March 31, 2014. There was an $8.8 million excess income tax benefit recognized in additional paid-in capital from the realization of stock-based payment deductions during the three months ended March 31, 2015, and a $6.6 million excess income tax benefit recognized in additional paid-in capital from the realization of stock-based payment deductions during the three months ended March 31, 2014. | |||||||||||||||
Stock Option, Restricted Stock and Restricted Stock Unit Activity | |||||||||||||||
There were no Options granted during the three months ended March 31, 2015. The following table summarizes stock option activity (for previously granted Options) for the three months ended March 31, 2015 (in thousands, except per share amounts): | |||||||||||||||
Stock Options | Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in Years) | Aggregate Intrinsic Value | |||||||||||
Outstanding at December 31, 2014 | 722 | $ | 26.68 | 2.61 | $ | 86,758 | |||||||||
Granted | — | $ | — | — | — | ||||||||||
Exercised | (68 | ) | $ | 23.05 | — | — | |||||||||
Forfeited or expired | (2 | ) | $ | 14.36 | — | — | |||||||||
Outstanding at March 31, 2015 | 652 | $ | 27.08 | 2.44 | $ | 93,222 | |||||||||
Exercisable at March 31, 2015 | 652 | $ | 27.08 | 2.44 | $ | 93,222 | |||||||||
The aggregate intrinsic value of Options in the table above represents total pretax intrinsic value (i.e., the difference between the closing price of Common Stock on the last trading day of the reporting period and the exercise price times the number of shares) that would have been received by the option holders had all option holders exercised their Options on March 31, 2015. The amount of the aggregate intrinsic value changes, based on the fair value of Common Stock. Total intrinsic value of Options exercised was $28.2 million for the three months ended March 31, 2015, and $21.4 million for the three months ended March 31, 2014. All previously granted Options were fully vested as of December 31, 2011 and, therefore, no Options vested during the three months ended March 31, 2015 and March 31, 2014, respectively. | |||||||||||||||
As of March 31, 2015, there were no unrecognized compensation costs related to non-vested Options expected to be recognized as all previously granted Options were fully vested as of December 31, 2011. | |||||||||||||||
During the three months ended March 31, 2015 and March 31, 2014, we granted restricted stock awards for 2,535 shares and 2,625 shares of Common Stock, respectively, to non-employee directors. There were 484,320 restricted stock awards granted to senior officers during the three months ended March 31, 2015, which were one-time grants of restricted stock awards given to certain senior officers whose rights to receive cash payments upon a change in control of Ultimate were either terminated or significantly reduced. Under the terms of the applicable change in control plans, we were required to provide each such senior officer with “comparable value” with respect to the reduction or termination of his or her change in control award. There were 5,000 restricted stock awards granted to officers and employees during the three months ended March 31, 2014. There were 156,655 and 150,515 restricted stock unit awards granted to employees during the three months ended March 31, 2015 and March 31, 2014, respectively. | |||||||||||||||
During the three months ended March 31, 2015, 5,856 shares of Common Stock previously issued under restricted stock awards vested and were released to non-employee directors. During the three months ended March 31, 2014, 8,310 shares of Common Stock previously issued under restricted stock awards vested and were released to non-employee directors. During the three months ended March 31, 2015, 1,125 shares of Common Stock became issuable to officers and employees under restricted stock awards that vested and were released during such period. Of these shares released, 378 were retained by Ultimate and not issued, in satisfaction of withholding tax requirements applicable to payment of such awards in the amount of $0.1 million, while 747 were issued to the holders of such awards. During the three months ended March 31, 2014, there were no shares of Common Stock previously issued under restricted stock awards that vested and were released to officers and employees. | |||||||||||||||
During the three months ended March 31, 2015, 170,590 shares of Common Stock became issuable to officers and employees under restricted stock unit awards that vested and were released during such period. Of these shares released, 60,461 were retained by Ultimate and not issued, in satisfaction of withholding tax requirements applicable to payment of such awards in the amount of $10.0 million, while 110,129 were issued to the holders of such awards. During the three months ended March 31, 2014, 175,567 shares became issuable to officers and employees under restricted stock unit awards that vested and were released during such period. Of these shares released, 61,739 were retained by Ultimate and not issued, in satisfaction of withholding tax requirements applicable to payment of such awards in the amount of $10.2 million, while 113,828 were issued to the holders of such awards. | |||||||||||||||
The following table summarizes restricted stock award and restricted stock unit activity for the three months ended March 31, 2015 (in thousands, except per share values): | |||||||||||||||
Restricted Stock Awards | Restricted Stock Unit Awards | ||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | |||||||||||||
Outstanding at December 31, 2014 | 1,060 | $ | 112.77 | 444 | |||||||||||
Granted | 487 | $ | 162.59 | 157 | |||||||||||
Vested and Released | (7 | ) | $ | 53.33 | (171 | ) | |||||||||
Forfeited or expired | — | $ | — | (3 | ) | ||||||||||
Outstanding at March 31, 2015 | 1,540 | $ | 128.79 | 427 | |||||||||||
As of March 31, 2015, $146.4 million of total unrecognized compensation costs related to non-vested restricted stock awards were expected to be recognized over a weighted average period of 2.2 years. As of March 31, 2015, $51.5 million of total unrecognized compensation costs related to non-vested restricted stock unit awards were expected to be recognized over a weighted average period of 2.1 years. |
Investments_in_Marketable_Secu1
Investments in Marketable Securities and Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Investments in Marketable Securities and Fair Value of Financial Instruments [Abstract] | ||||||||||||||||||||||||||||||||
Amortized cost, net unrealized gain and fair value of investments in marketable available-for-sale securities | The amortized cost, net unrealized gain and fair value of our investments in marketable available-for-sale securities as of March 31, 2015 and December 31, 2014 are shown below (in thousands): | |||||||||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||||||||||
Amortized Cost | Net Unrealized Gain/(Loss) | Fair Value | Amortized Cost | Net Unrealized Loss | Fair Value | |||||||||||||||||||||||||||
Corporate debentures and bonds | $ | 7,581 | $ | (3 | ) | $ | 7,578 | $ | 8,513 | $ | (9 | ) | $ | 8,504 | ||||||||||||||||||
Commercial paper | 300 | — | 300 | 600 | — | 600 | ||||||||||||||||||||||||||
U.S. Agency bonds | 254 | 1 | 255 | 255 | — | 255 | ||||||||||||||||||||||||||
U.S. Treasury bills | 798 | 1 | 799 | 798 | (1 | ) | 797 | |||||||||||||||||||||||||
Asset-Backed Securities | 1,166 | — | 1,166 | — | — | — | ||||||||||||||||||||||||||
Total investments | $ | 10,099 | $ | (1 | ) | $ | 10,098 | $ | 10,166 | $ | (10 | ) | $ | 10,156 | ||||||||||||||||||
Amortized costs and fair value of marketable available-for-sale securities by contractual maturity | The amortized cost and fair value of the marketable available-for-sale securities, by contractual maturity, as of March 31, 2015, are shown below (in thousands): | |||||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||||||||||
Due in one year or less | $ | 7,449 | $ | 7,447 | ||||||||||||||||||||||||||||
Due after one year | 2,650 | 2,651 | ||||||||||||||||||||||||||||||
Total | $ | 10,099 | $ | 10,098 | ||||||||||||||||||||||||||||
Fair value of financial assets and liabilities, by level within the fair value hierarchy | The following table sets forth, by level within the fair value hierarchy, financial assets and liabilities accounted for at fair value as of March 31, 2015 and December 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Corporate debentures and bonds | $ | 7,578 | $ | — | $ | 7,578 | $ | — | $ | 8,504 | $ | — | $ | 8,504 | $ | — | ||||||||||||||||
Commercial paper | 300 | — | 300 | — | 600 | — | 600 | — | ||||||||||||||||||||||||
U.S. Agency bonds | 255 | — | 255 | — | 255 | — | 255 | — | ||||||||||||||||||||||||
U.S. Treasury bills | 799 | — | 799 | — | 797 | — | 797 | — | ||||||||||||||||||||||||
Asset-Backed Securities | 1,166 | — | 1,166 | — | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 10,098 | $ | — | $ | 10,098 | $ | — | $ | 10,156 | $ | — | $ | 10,156 | $ | — | ||||||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and equipment | Property and equipment as of March 31, 2015 and December 31, 2014 consist of the following (in thousands): | |||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||
Computer equipment | $ | 127,724 | $ | 119,716 | ||||
Internal-use software | 55,691 | 49,464 | ||||||
Other property and equipment | 29,693 | 29,005 | ||||||
Property and equipment | 213,108 | 198,185 | ||||||
Less: accumulated depreciation and amortization | 116,456 | 111,590 | ||||||
Property and equipment, net | $ | 96,652 | $ | 86,595 | ||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ||||||||
Prepaid expenses and other current assets | Prepaid expenses and other current assets as of March 31, 2015 and December 31, 2014 consist of the following (in thousands): | |||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||
Prepaid commissions | $ | 19,321 | $ | 17,772 | ||||
Other prepaid expenses | 6,292 | 8,064 | ||||||
Other current assets | 11,053 | 8,952 | ||||||
Total prepaid expenses and other current assets | $ | 36,666 | $ | 34,788 | ||||
Goodwill_Intangible_Assets_Tab
Goodwill & Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||
Schedule of Goodwill | The changes in the carrying value of goodwill since December 31, 2014 were as follows (in thousands): | |||||||||||||||||
For the Three Months Ended | ||||||||||||||||||
31-Mar-15 | ||||||||||||||||||
Goodwill, December 31, 2014 | $ | 25,696 | ||||||||||||||||
Translation adjustment (1) | (640 | ) | ||||||||||||||||
Goodwill, March 31, 2015 | $ | 25,056 | ||||||||||||||||
__________________________ | ||||||||||||||||||
(1) Represents the impact of the foreign currency translation of the portion of goodwill that is recorded by our Canadian subsidiary whose functional currency is also its local currency. Such goodwill is translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive loss. | ||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The following tables present our acquired intangible assets as of the dates specified below (in thousands): | |||||||||||||||||
March 31, 2015 | ||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Cumulative Translation Adjustment (1) | Net Carrying Amount | Weighted Average Remaining Useful Life | ||||||||||||||
Developed technology | $ | 5,200 | $ | (1,028 | ) | $ | (839 | ) | $ | 3,333 | 6 | |||||||
Customer relationships | 3,200 | (478 | ) | (8 | ) | 2,714 | 9 | |||||||||||
Non-compete agreements | 300 | (140 | ) | (4 | ) | 156 | 2 | |||||||||||
$ | 8,700 | $ | (1,646 | ) | $ | (851 | ) | $ | 6,203 | 7 | ||||||||
December 31, 2014 | ||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Cumulative Translation Adjustment (1) | Net Carrying Amount | Weighted Average Remaining Useful Life | ||||||||||||||
Developed technology | $ | 5,200 | $ | (874 | ) | $ | (537 | ) | $ | 3,789 | 6 | |||||||
Customer relationships | 3,200 | (392 | ) | (5 | ) | 2,803 | 9 | |||||||||||
Non-compete agreements | 300 | (115 | ) | (3 | ) | 182 | 2 | |||||||||||
$ | 8,700 | $ | (1,381 | ) | $ | (545 | ) | $ | 6,774 | 7 | ||||||||
____________________________ | ||||||||||||||||||
(1) Represents the impact of the foreign currency translation of the portion of acquired intangible assets that is recorded by our Canadian subsidiary whose functional currency is also its local currency. Such intangible assets are translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive income (loss). |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Reconciliation of shares used in the computation of basic and diluted net income per share | The following table is a reconciliation of the shares of Ultimate's issued and outstanding $0.01 par value common stock ("Common Stock") used in the computation of basic and diluted net income per share for the three months ended March 31, 2015 and 2014 (in thousands): | |||||
For the Three Months Ended March 31, | ||||||
2015 | 2014 | |||||
Basic weighted average shares outstanding | 28,583 | 28,196 | ||||
Effect of dilutive equity instruments | 984 | 1,113 | ||||
Diluted weighted average shares outstanding | 29,567 | 29,309 | ||||
Options to purchase shares of Common Stock and other stock-based awards outstanding which are not included in the calculation of diluted income per share because their impact is anti-dilutive | 140 | 82 | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Non-cash stock-based compensation expense | The following table sets forth the non-cash stock-based compensation expense resulting from stock-based arrangements that were recorded in our unaudited condensed consolidated statements of income for the periods indicated (in thousands): | ||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||
Non-cash stock-based compensation expense: | |||||||||||||||
Cost of recurring revenues | $ | 1,427 | $ | 1,240 | |||||||||||
Cost of services revenues | 1,282 | 1,055 | |||||||||||||
Sales and marketing | 7,783 | 4,797 | |||||||||||||
Research and development | 1,248 | 1,270 | |||||||||||||
General and administrative | 4,337 | 2,476 | |||||||||||||
Total non-cash stock-based compensation expense | $ | 16,077 | $ | 10,838 | |||||||||||
Summary of stock option activity | The following table summarizes stock option activity (for previously granted Options) for the three months ended March 31, 2015 (in thousands, except per share amounts): | ||||||||||||||
Stock Options | Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in Years) | Aggregate Intrinsic Value | |||||||||||
Outstanding at December 31, 2014 | 722 | $ | 26.68 | 2.61 | $ | 86,758 | |||||||||
Granted | — | $ | — | — | — | ||||||||||
Exercised | (68 | ) | $ | 23.05 | — | — | |||||||||
Forfeited or expired | (2 | ) | $ | 14.36 | — | — | |||||||||
Outstanding at March 31, 2015 | 652 | $ | 27.08 | 2.44 | $ | 93,222 | |||||||||
Exercisable at March 31, 2015 | 652 | $ | 27.08 | 2.44 | $ | 93,222 | |||||||||
Summary of restricted stock award and restricted stock unit activity | The following table summarizes restricted stock award and restricted stock unit activity for the three months ended March 31, 2015 (in thousands, except per share values): | ||||||||||||||
Restricted Stock Awards | Restricted Stock Unit Awards | ||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | |||||||||||||
Outstanding at December 31, 2014 | 1,060 | $ | 112.77 | 444 | |||||||||||
Granted | 487 | $ | 162.59 | 157 | |||||||||||
Vested and Released | (7 | ) | $ | 53.33 | (171 | ) | |||||||||
Forfeited or expired | — | $ | — | (3 | ) | ||||||||||
Outstanding at March 31, 2015 | 1,540 | $ | 128.79 | 427 | |||||||||||
Nature_of_Operations_Details
Nature of Operations (Details) | Mar. 31, 2015 |
employee | |
Nature of Operations [Line Items] | |
UltiPro Enterprise solution suite, minimum number of employees | 1,500 |
UltiPro Enterprise solution suite, company size, number of employees (10,000 or more) | 10,000 |
Minimum [Member] | |
Nature of Operations [Line Items] | |
UltiPro enterprise solution suite, number of employees in mid-market companies | 500 |
Number Of employees in companies as a strategic market | 100 |
Maximum [Member] | |
Nature of Operations [Line Items] | |
UltiPro enterprise solution suite, number of employees in mid-market companies | 1,500 |
Number Of employees in companies as a strategic market | 499 |
Investments_in_Marketable_Secu2
Investments in Marketable Securities and Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $10,099 | $10,166 |
Net Unrealized Gain/(Loss) | -1 | -10 |
Fair Value | 10,098 | 10,156 |
Amortized Cost Basis | ||
Due in one year or less | 7,449 | |
Due after one year | 2,650 | |
Total | 10,099 | |
Fair Value | ||
Due in one year or less | 7,447 | |
Due after one year | 2,651 | |
Total | 10,098 | 10,156 |
Corporate debentures and bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,581 | 8,513 |
Net Unrealized Gain/(Loss) | -3 | -9 |
Fair Value | 7,578 | 8,504 |
Fair Value | ||
Total | 7,578 | 8,504 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 300 | 600 |
Net Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 300 | 600 |
Fair Value | ||
Total | 300 | 600 |
U.S. Agency bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 254 | 255 |
Net Unrealized Gain/(Loss) | 1 | 0 |
Fair Value | 255 | 255 |
Fair Value | ||
Total | 255 | 255 |
U.S. Treasury bills | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 798 | 798 |
Net Unrealized Gain/(Loss) | 1 | -1 |
Fair Value | 799 | 797 |
Fair Value | ||
Total | 799 | 797 |
Asset-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,166 | 0 |
Net Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 1,166 | 0 |
Fair Value | ||
Total | $1,166 | $0 |
Investments_in_Marketable_Secu3
Investments in Marketable Securities and Fair Value of Financial Instruments Investments in Marketable Securities and Fair Value of Financial Instruments (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate debentures and bonds | $7,578 | $8,504 |
Commercial paper | 300 | 600 |
U.S. Agency bonds | 255 | 255 |
U.S. Treasury bills | 799 | 797 |
Asset-Backed Securities | 1,166 | 0 |
Total | 10,098 | 10,156 |
(Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate debentures and bonds | 0 | 0 |
Commercial paper | 0 | 0 |
U.S. Agency bonds | 0 | 0 |
U.S. Treasury bills | 0 | 0 |
Asset-Backed Securities | 0 | 0 |
Total | 0 | 0 |
(Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate debentures and bonds | 7,578 | 8,504 |
Commercial paper | 300 | 600 |
U.S. Agency bonds | 255 | 255 |
U.S. Treasury bills | 799 | 797 |
Asset-Backed Securities | 1,166 | 0 |
Total | 10,098 | 10,156 |
(Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate debentures and bonds | 0 | 0 |
Commercial paper | 0 | 0 |
U.S. Agency bonds | 0 | 0 |
U.S. Treasury bills | 0 | 0 |
Asset-Backed Securities | 0 | 0 |
Total | $0 | $0 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Capital Leased Assets [Line Items] | |||
Property and equipment | $213,108,000 | $198,185,000 | |
Less: accumulated depreciation and amortization | -116,456,000 | -111,590,000 | |
Property and equipment, net | 96,652,000 | 86,595,000 | |
Capitalized Computer Software, Additions | 6,500,000 | 6,900,000 | |
Computer Equipment [Member] | |||
Capital Leased Assets [Line Items] | |||
Property and equipment | 127,724,000 | 119,716,000 | |
Internal Use Software [Member] | |||
Capital Leased Assets [Line Items] | |||
Property and equipment | 55,691,000 | 49,464,000 | |
Property and equipment [Member] | |||
Capital Leased Assets [Line Items] | |||
Property and equipment | 29,693,000 | 29,005,000 | |
Minimum [Member] | Property and equipment [Member] | |||
Capital Leased Assets [Line Items] | |||
Estimated useful life (in years) | 2 years | ||
Minimum [Member] | Leasehold Improvements [Member] | |||
Capital Leased Assets [Line Items] | |||
Estimated useful life (in years) | 3 years | ||
Maximum [Member] | Property and equipment [Member] | |||
Capital Leased Assets [Line Items] | |||
Estimated useful life (in years) | 20 years | ||
Maximum [Member] | Leasehold Improvements [Member] | |||
Capital Leased Assets [Line Items] | |||
Estimated useful life (in years) | 15 years | ||
Development Project, eRecruitment [Member] | Internal Use Software [Member] | |||
Capital Leased Assets [Line Items] | |||
Amortization | $300,000 | $0 |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid commissions | $19,321 | $17,772 |
Other Prepaid Expense | 6,292 | 8,064 |
Other Assets | 11,053 | 8,952 |
Total prepaid expenses and other current assets | $36,666 | $34,788 |
Goodwill_Intangible_Assets_Goo
Goodwill & Intangible Assets Goodwill and Intangible Assets (Goodwill) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Roll Forward] | |
Goodwill, December 31, 2014 | $25,696 |
Translation adjustment | -640 |
Goodwill, March 31, 2015 | $25,056 |
Goodwill_Intangible_Assets_Det
Goodwill & Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $8,700 | $8,700 | |||
Accumulated Amortization | -1,646 | -1,381 | |||
Cumulative Translation Adjustment | -851 | [1] | -545 | [1] | |
Net Carrying Amount | 6,203 | 6,774 | |||
Estimated Useful Lives | 7 years | 7 years | |||
Amortization of acquired intangible assets | 264 | 289 | |||
Developed technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 5,200 | 5,200 | |||
Accumulated Amortization | -1,028 | -874 | |||
Cumulative Translation Adjustment | -839 | [1] | -537 | [1] | |
Net Carrying Amount | 3,333 | 3,789 | |||
Estimated Useful Lives | 6 years | 6 years | |||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 3,200 | 3,200 | |||
Accumulated Amortization | -478 | -392 | |||
Cumulative Translation Adjustment | -8 | [1] | -5 | [1] | |
Net Carrying Amount | 2,714 | 2,803 | |||
Estimated Useful Lives | 9 years | 9 years | |||
Non-compete agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 300 | 300 | |||
Accumulated Amortization | -140 | -115 | |||
Cumulative Translation Adjustment | -4 | [1] | -3 | [1] | |
Net Carrying Amount | $156 | $182 | |||
Estimated Useful Lives | 2 years | 2 years | |||
Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated Useful Lives | 3 years | ||||
Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated Useful Lives | 10 years | ||||
[1] | Represents the impact of the foreign currency translation of the portion of acquired intangible assets that is recorded by our Canadian subsidiary whose functional currency is also its local currency. Such intangible assets are translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive income (loss). |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Earnings Per Share [Abstract] | |||
Common Stock, par value | $0.01 | $0.01 | $0.01 |
Basic weighted average shares outstanding | 28,583 | 28,196 | |
Effect of dilutive equity instruments | 984 | 1,113 | |
Diluted weighted average shares outstanding | 29,567 | 29,309 | |
Options to purchase shares of Common Stock and other stock-based awards outstanding which are not included in the calculation of diluted income per share because their impact is anti-dilutive | 140 | 82 |
Foreign_Currency_Details
Foreign Currency (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Foreign Currency [Abstract] | |||
Cumulative unrealized translation losses | ($2) | ($0.80) | |
Unrealized translation loss included in accumulated other comprehensive income | ($5.60) | ($3.60) |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | $16,077 | $10,838 |
Net cash proceeds from the exercise of stock options | 1,569 | 2,295 |
Excess tax benefits from employee stock plan | 8,845 | 6,558 |
Cost of recurring revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 1,427 | 1,240 |
Cost of services revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 1,282 | 1,055 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 7,783 | 4,797 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 1,248 | 1,270 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 4,337 | 2,476 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Net cash proceeds from the exercise of stock options | 1,600 | 2,300 |
Excess tax benefits from employee stock plan | $8,800 | $6,600 |
Amended and Restated 2005 Equity and Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Aggregate number of shares of Common Stock available for issuance (in shares) | 588,394 |
StockBased_Compensation_StockB
Stock-Based Compensation Stock-Based Compensation (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
Y | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 722,000 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | -68,000 | ||
Forfeited or expired (in shares) | -2,000 | ||
Outstanding at end of period (in shares) | 652,000 | 722,000 | |
Exercisable at end of period (in shares) | 652,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Outstanding at beginning of period (in dollars per share) | $26.68 | ||
Granted (in dollars per share) | $0 | ||
Exercised (in dollars per share) | $23.05 | ||
Forfeited or expired (in dollars per share) | $14.36 | ||
Outstanding at end of period (in dollars per share) | $27.08 | $26.68 | |
Exercisable at end of period (in dollars per share) | $27.08 | ||
Weighted Average Remaining Contractual Term [Abstract] | |||
Outstanding at beginning of period (in years) | 2 years 5 months 9 days | 2 years 7 months 10 days | |
Granted (in years) | 0 | ||
Exercised (in years) | 0 | ||
Forfeited or expired (in years) | 0 | ||
Outstanding at end of period (in years) | 2 years 5 months 9 days | 2 years 7 months 10 days | |
Exercisable at end of period (in years) | 2 years 5 months 9 days | ||
Aggregate Intrinsic Value [Abstract] | |||
Outstanding at beginning of period | $86,758,000 | ||
Granted | 0 | ||
Exercised | 0 | ||
Forfeited or expired | 0 | ||
Outstanding at end of period | 93,222,000 | 86,758,000 | |
Exercisable at end of period | 93,222,000 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Total intrinsic value of options exercised | 28,200,000 | 21,400,000 | |
Total fair value of options vested | 0 | 0 | |
Total unrecognized compensation costs | 0 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 1,060,000 | ||
Granted (in shares) | 487,000 | ||
Vested and Released (in shares) | -7,000 | ||
Forfeited or expired (in shares) | 0 | ||
Outstanding at end of period (in shares) | 1,540,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Outstanding at beginning of period (in dollars per share) | $112.77 | ||
Granted (in dollars per share) | $162.59 | ||
Vested and Released (in dollars per share) | $53.33 | ||
Forfeited or expired (in dollars per share) | $0 | ||
Outstanding at end of period (in dollars per share) | $128.79 | ||
Total unrecognized compensation costs | 146,400,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month 28 days | ||
Restricted Stock [Member] | Non-employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Vested and Released (in shares) | -5,856 | -8,310 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Awards granted to non-employee directors | 2,535 | 2,625 | |
Restricted Stock [Member] | Officers or Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Vested and Released (in shares) | -1,125 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Awards granted to non-employee directors | 484,320 | 5,000 | |
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 378 | ||
Aggregate amount of shares retained by company and not issued | 100,000 | ||
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 747 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 444,000 | ||
Granted (in shares) | 157,000 | ||
Vested and Released (in shares) | -170,590 | ||
Forfeited or expired (in shares) | -3,000 | ||
Outstanding at end of period (in shares) | 427,410 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Total unrecognized compensation costs | 51,500,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 19 days | ||
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 60,461 | 61,739 | |
Aggregate amount of shares retained by company and not issued | $10,000,000 | $10,200,000 | |
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 110,129 | 113,828 | |
Restricted Stock Units (RSUs) [Member] | Officers or Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 156,655 | 150,515 | |
Vested and Released (in shares) | -175,567 |