Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 02, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ultimate Software Group Inc | |
Entity Central Index Key | 1,016,125 | |
Current Fiscal Year End Date | --12-31 | |
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 | 29,000,829 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 94,786 | $ 109,325 |
Investments in marketable securities | 16,319 | 10,780 |
Accounts receivable, net of allowance for doubtful accounts of $900 for 2016 and 2015 | 147,683 | 130,106 |
Prepaid expenses and other current assets | 57,237 | 46,804 |
Deferred tax assets, net | 913 | 883 |
Total current assets before funds held for clients | 316,938 | 297,898 |
Funds held for clients | 394,400 | 923,308 |
Total current assets | 711,338 | 1,221,206 |
Property and equipment, net | 166,333 | 125,492 |
Goodwill | 35,583 | 24,410 |
Investments in marketable securities | 7,904 | 9,278 |
Intangible assets, net | 23,551 | 5,167 |
Other assets, net | 41,834 | 31,107 |
Deferred tax assets, net | 83,531 | 48,909 |
Total assets | 1,070,074 | 1,465,569 |
Current liabilities: | ||
Accounts payable | 11,618 | 7,395 |
Accrued liabilities | 49,304 | 42,097 |
Deferred revenue | 162,758 | 142,793 |
Capital lease obligations | 5,509 | 4,488 |
Other borrowings | 100 | 400 |
Total current liabilities before client fund obligations | 229,289 | 197,173 |
Client fund obligations | 395,150 | 923,366 |
Total current liabilities | 624,439 | 1,120,539 |
Deferred revenue | 2,492 | 2,934 |
Deferred rent | 4,309 | 3,719 |
Capital lease obligations | 5,090 | 3,665 |
Deferred income tax liability | 584 | 646 |
Total liabilities | 636,914 | 1,131,503 |
Stockholders’ equity: | ||
Preferred Stock | 0 | 0 |
Common Stock, $.01 par value, 50,000,000 shares authorized, 33,655,054 and 33,260,879 shares issued as of 2016 and 2015, respectively | 336 | 333 |
Additional paid-in capital | 533,805 | 463,609 |
Accumulated other comprehensive loss | (6,477) | (7,829) |
Accumulated earnings | 116,855 | 59,627 |
Stockholders' equity before treasury stock | 644,519 | 515,740 |
Treasury stock, 4,657,995 and 4,467,595 shares, at cost, for 2016 and 2015, respectively | (211,359) | (181,674) |
Total stockholders’ equity | 433,160 | 334,066 |
Total liabilities and stockholders’ equity | 1,070,074 | 1,465,569 |
Series A Junior Preferred Stock | ||
Stockholders’ equity: | ||
Preferred Stock | $ 0 | $ 0 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Allowance for doubtful accounts | $ 900 | $ 900 |
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 | 33,655,054 | 33,260,879 |
Treasury Stock, shares | 4,657,995 | 4,467,595 |
Series A Junior Preferred Stock | ||
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 CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Recurring | $ 167,025 | $ 131,768 | $ 478,255 | $ 375,284 |
Services | 29,966 | 23,556 | 92,487 | 72,147 |
Total revenues | 196,991 | 155,324 | 570,742 | 447,431 |
Cost of revenues: | ||||
Recurring | 44,095 | 34,856 | 126,503 | 102,033 |
Services | 32,069 | 25,027 | 94,215 | 72,966 |
Total cost of revenues | 76,164 | 59,883 | 220,718 | 174,999 |
Gross profit | 120,827 | 95,441 | 350,024 | 272,432 |
Operating expenses: | ||||
Sales and marketing | 55,212 | 41,687 | 166,342 | 121,645 |
Research and development | 31,699 | 23,027 | 88,267 | 68,331 |
General and administrative | 25,284 | 19,120 | 68,993 | 53,460 |
Total operating expenses | 112,195 | 83,834 | 323,602 | 243,436 |
Operating income | 8,632 | 11,607 | 26,422 | 28,996 |
Other income (expense): | ||||
Interest and other expense | (179) | (118) | (543) | (368) |
Other income, net | 111 | 62 | 316 | 165 |
Total other expense, net | (68) | (56) | (227) | (203) |
Income before income taxes | 8,564 | 11,551 | 26,195 | 28,793 |
Provision for income taxes | (3,801) | (5,700) | (8,713) | (15,125) |
Net income | $ 4,763 | $ 5,851 | $ 17,482 | $ 13,668 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.16 | $ 0.20 | $ 0.60 | $ 0.48 |
Diluted (in dollars per share) | $ 0.16 | $ 0.20 | $ 0.58 | $ 0.46 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 28,977 | 28,603 | 28,901 | 28,592 |
Diluted (in shares) | 30,475 | 29,715 | 30,360 | 29,651 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 4,763 | $ 5,851 | $ 17,482 | $ 13,668 |
Other comprehensive income (loss): | ||||
Unrealized (loss) gain on investments in marketable available-for-sale securities | (74) | 13 | 163 | 20 |
Unrealized (loss) gain on foreign currency translation adjustments | (253) | (2,035) | 1,253 | (3,509) |
Other comprehensive (loss) income, before tax | (327) | (2,022) | 1,416 | (3,489) |
Income tax benefit (expense) related to items of other comprehensive income | 29 | (4) | (64) | (8) |
Other comprehensive (loss) income, net of tax | (298) | (2,026) | 1,352 | (3,497) |
Comprehensive income | $ 4,465 | $ 3,825 | $ 18,834 | $ 10,171 |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net Income | $ 17,482 | $ 13,668 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 19,202 | 16,012 |
Provision for doubtful accounts | 2,707 | 3,390 |
Non-cash stock-based compensation expense | 84,401 | 59,763 |
Income taxes | 4,967 | 14,692 |
Net amortization of premiums and accretion of discounts on available-for-sale securities | 511 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (20,184) | (23,154) |
Prepaid expenses and other current assets | (10,433) | (8,116) |
Other assets | (10,727) | (6,763) |
Accounts payable | 4,223 | (494) |
Accrued liabilities and deferred rent | 3,947 | 10,821 |
Deferred revenue | 19,253 | 21,626 |
Net cash provided by operating activities | 115,349 | 101,445 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (49,735) | (33,538) |
Payments for business combinations | (25,775) | 0 |
Purchases of marketable securities | (158,571) | (14,464) |
Maturities of marketable securities | 74,930 | 6,380 |
Net change in money market securities and other cash equivalents held to satisfy client fund obligations | 608,037 | 427,867 |
Net cash provided by investing activities | 448,886 | 386,245 |
Cash flows from financing activities: | ||
Repurchases of Common Stock | (29,685) | (31,083) |
Net proceeds from issuances of Common Stock | 3,639 | 3,646 |
Withholding taxes paid related to net share settlement of equity awards | (20,669) | (12,496) |
Principal payments on capital lease obligations | (4,273) | (3,629) |
Repayments of other borrowings | (300) | (467) |
Net decrease in client fund obligations | (528,216) | (427,867) |
Net cash used in financing activities | (579,504) | (471,896) |
Effect of exchange rate changes on cash | 730 | (1,954) |
Net (decrease) increase in cash and cash equivalents | (14,539) | 13,840 |
Cash and cash equivalents, beginning of period | 109,325 | 108,298 |
Cash and cash equivalents, end of period | 94,786 | 122,138 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 316 | 285 |
Cash paid for taxes | 1,576 | 540 |
Non-cash investing and financing activities: | ||
Capital lease obligations to acquire new equipment | 6,719 | 4,367 |
Cash held in escrow for business combinations | 3,850 | 0 |
Stock based compensation for capitalized software | $ 2,830 | $ 2,188 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2016 | |
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 cloud provider of people management solutions, often referred to as human capital management (“HCM”). Ultimate's UltiPro product suite (“UltiPro”) is a comprehensive, engaging solution that has human resources ("HR"), payroll, and benefits management at its core and includes global people management, available in twelve languages with more than 35 country-specific localizations. The solution is delivered via software-as-a-service to organizations based in the United States and Canada, including those with global workforces. 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 global enterprise companies, which we define as companies with more than 2,500 employees, including those with 10,000 or more employees; enterprise companies, which we define as those having 1,501 - 2,500 employees; mid-market companies, which we define as those having 501 - 1,500 employees; and strategic market companies, which we define as those having 300 - 500 employees. UltiPro is marketed primarily through our global enterprise, enterprise, mid-market and strategic direct sales teams. |
Basis of Presentation, Consolid
Basis of Presentation, Consolidation and the Use of Estimates | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015 filed with the SEC on February 26, 2016 (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 and nine months ended September 30, 2016 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 Accounti
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015 , 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 September 30, 2016 and December 31, 2015 . 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 (Topic 606)" ("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. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date" ("ASU 2015-14"), which defers the effective date of ASU 2014-09 for all entities by one year. Under ASU 2015-14, the new standard is effective for Ultimate on January 1, 2018. Early adoption will be permitted, but not before the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. In March 2016, the FASB issued ASU 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)" ("ASU 2016-08"), in April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing" ("ASU 2016-10"), and in May 2016, the FASB issued ASU 2016-12, "Narrow-Scope Improvements and Practical Expedients", all which clarify the guidance in ASU 2014-09 and have the same effective dates as the original standard. 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 November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17”). ASU 2015-17 requires entities to offset all deferred tax assets and liabilities (and valuation allowances) for each tax-paying jurisdiction within each tax-paying component and present the net deferred tax as a single noncurrent amount in a classified balance sheet. The new standard is effective for Ultimate on January 1, 2017 and early adoption is permitted. The standard permits the use of either the prospective or retrospective method. We are evaluating the effect that ASU 2015-17 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method. In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is effective for Ultimate on January 1, 2019 and early adoption is permitted. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. We have not yet determined the effect the standard will have on our ongoing financial reporting. Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). The standard amends the accounting for certain aspects of share-based payments to employees. The standard requires transition for specific objectives of the standard. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, and forfeitures should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement should be applied prospectively. Further, an entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. The new standard is effective for us beginning January 1, 2017, with early adoption permitted. We elected to early adopt the new guidance in the third quarter of fiscal year 2016 which requires us to reflect any cumulative-effect and prospective method adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than additional paid-in capital for all periods in fiscal year 2016. Prior to the adoption of ASU 2016-09, companies could not recognize excess tax benefits (the amount by which the tax deduction exceeds the financial statement expense previously recorded) when a restricted stock unit or restricted stock award vested or an option was exercised if the related tax deduction resulted in an increase to a net operating loss carryforward rather than a reduction in income taxes payable. Consequently, the excess tax benefits were credited to additional paid-in-capital and a deferred tax asset was established, only to the extent realized through a reduction in income taxes payable, which resulted in the excess tax benefits being included in Ultimate’s net operating loss carryforwards, while being excluded from deferred tax assets on the balance sheet. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. Adoption of the new standard resulted in a $39.7 million cumulative-effect adjustment as of January 1, 2016 to record a deferred tax asset with the offset to retained earnings in the balance sheet, representing the amount of our net operating loss carryforwards attributable to excess tax benefits. Additional amendments to the accounting for minimum statutory withholding tax requirements had no impact to retained earnings as of January 1, 2016, where the cumulative effect of these changes is required to be recorded. We have elected to continue to estimate forfeitures expected to occur to determine the amount of non-cash stock-based compensation costs to be recognized in each period. We elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively to all periods presented which resulted in an increase to both net cash from operations and net cash used in financing of $25.9 million for the nine months ended September 30, 2015. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented in our unaudited consolidated cash flows statements since such cash flows have historically been presented as a financing activity. Adoption of the new standard resulted in the recognition of excess tax benefits in our provision for income taxes rather than additional paid-in capital of $3.3 million and $11.9 million for the three and nine months ended September 30, 2016, respectively, and impacted our previously reported quarterly results for fiscal year 2016 as follows (in thousands, except earnings per share data): Three Months Ended June 30, 2016 Three Months Ended March 31, 2016 As reported As adjusted As reported As adjusted Income statements: Provision for income taxes $ 6,708 $ 2,263 $ 6,811 $ 2,646 Net income $ 1,677 $ 6,122 $ 2,435 $ 6,600 Diluted earnings per share $ 0.06 $ 0.20 $ 0.08 $ 0.22 Diluted weighted average shares outstanding 29,893 30,240 29,833 30,108 Cash flows statements: Net cash provided by operating activities $ 52,476 $ 65,606 $ 32,059 $ 38,649 Net cash (used in) provided by financing activities $ (27,517 ) $ (40,647 ) $ 348,116 $ 341,526 Balance sheets: Additional paid-in-capital $ 517,912 $ 504,782 $ 480,961 $ 474,371 Accumulated earnings $ 63,739 $ 72,349 $ 62,062 $ 66,227 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 became effective for Ultimate on January 1, 2016. The standard permits the use of either the prospective or retrospective method. The effect of the adoption of ASU 2015-05 has had no material impact on our unaudited condensed consolidated financial statements and related disclosures. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations 2016 Business Combinations During the third quarter of 2016, we completed the acquisition of Kanjoya, Inc. ("Kanjoya"), a California corporation (the “Kanjoya Acquisition”), located in San Francisco, California. During the second quarter of 2016, we completed the acquisition of substantially all of the assets of Capital Analytics, Inc. (d/b/a Vestrics) (hereinafter referred to as "Vestrics") (the “Vestrics Acquisition”), a Delaware limited liability company located in North Carolina. The Kanjoya Acquisition and the Vestrics Acquisition (the “2016 Acquisitions”) were deemed insignificant to the unaudited condensed consolidated financial statements on an individual basis and in the aggregate. Acquisition of Kanjoya, Inc. On September 29, 2016 (the Kanjoya Closing Date), pursuant to a merger agreement with Kanjoya, we acquired Kanjoya in exchange for $19.5 million , of which $16.7 million was paid in cash during the three months ended September 30, 2016 while the remaining $2.9 million is being held in escrow, and is included in accrued liabilities on our unaudited condensed consolidated balance sheet. We recorded the Kanjoya Acquisition using the acquisition method of accounting. The valuation and purchase price allocation for the Kanjoya Acquisition is in process and will be finalized prior to September 30, 2017. The third party valuation is expected to be completed by December 31, 2016 and any subsequent modifications to the valuation and purchase price allocation that may arise will be completed during the measurement period ending September 30, 2017. The valuation and purchase price allocation of the Kanjoya acquisition were not available as of the filing of this Form 10-Q due to our inability to gather all the data and information necessary to complete the valuation process, including, but not limited to, long-range financial planning for the stand-alone entity and an assessment of the acquired assembled workforce. The significant classes of assets and liabilities to which we preliminarily allocated the purchase price of Kanjoya were acquired intangibles for a total of $13.0 million (i.e., $12.0 million for developed technology and $1.0 million for customer relationships) and goodwill for the balance of $6.5 million . Such estimates of the fair value of the assets acquired are based on management's best judgment and prior experiences with business combinations; these estimates will be adjusted based on the valuation work performed by management, in conjunction with an independent third party. Kanjoya is a leading cloud workforce intelligence provider for enterprises. Based upon the technology acquired, we launched UltiPro Perception, a feature-set that enables businesses to identify and analyze attitudes and performance traits of their employees, managers, and teams from surveys and other sources of employee feedback. Kanjoya's workforce has joined Ultimate and will serve to establish an additional research and development hub for us in San Francisco. The results of operations from this acquisition have been included in our unaudited condensed consolidated financial statements since the closing of the Kanjoya Acquisition. Pro forma results of operations have not been presented because the effects of this business combination were not deemed significant to our unaudited condensed consolidated results of operations. Acquisition of Capital Analytics, Inc. On May 11, 2016 (the "Vestrics Closing Date"), pursuant to an asset purchase agreement with Vestrics, we acquired certain assets and liabilities in exchange for $10.1 million , of which $9.1 million was paid in cash during the three months ended June 30, 2016 while the remaining $1.0 million is being held in escrow and is included in accrued liabilities on our unaudited condensed consolidated balance sheet. We recorded the Vestrics Acquisition using the acquisition method of accounting and recognized assets and liabilities assumed at their fair value as of the date of acquisition. The valuation of Vestrics has been completed and the significant classes of assets and liabilities to which we allocated the purchase price were goodwill of $4.3 million (which includes working capital, net, totaling $0.2 million , which was assumed pursuant to the Vestrics Acquisition) and identifiable intangible assets of $6.0 million related to developed technology. Vestrics’ predictive technology enables a company to identify and analyze the connections between its investments in human capital and the performance-related business results of those investments. We will leverage Vestrics’ technology as we continue to expand our analytics capabilities across UltiPro. The fair value of the acquired developed technology was estimated using the cost approach. Identifiable intangible assets were assigned a total weighted-average amortization period of 7.0 years. Since the developed predictive technology acquired pursuant to the Vestrics Acquisition will be included in the development project currently being capitalized as internal-use software to be offered as a cloud product in the future, amortization of the Vestrics developed technology will begin when it is ready for its intended use. The results of operations from this acquisition have been included in our unaudited condensed consolidated financial statements since the Vestrics Closing Date. Pro forma results of operations have not been presented because the effects of this business combination were not deemed significant to our unaudited condensed consolidated results of operations. |
Investments in Marketable Secur
Investments in Marketable Securities and Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
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, net of tax, 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 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 and nine months ended September 30, 2016 and September 30, 2015 . Gains and losses on the sale of available-for-sale securities are determined using the specific identification method. There was $79 thousand of unrealized gain and $84 thousand of unrealized loss on available-for-sale securities as of September 30, 2016 and December 31, 2015 , respectively. The amortized cost, net unrealized gain and fair value of our funds held for customers and corporate investments in marketable available-for-sale securities as of September 30, 2016 and December 31, 2015 are shown below (in thousands): As of September 30, 2016 As of December 31, 2015 Amortized Cost Net Unrealized Gain Fair Value (1) Amortized Cost Net Unrealized (Loss) Fair Value (1) Type of issue: Funds held for clients – money market securities and other cash equivalents $ 245,393 $ — $ 245,393 $ 853,392 $ — $ 853,392 Available-for-sale securities: Corporate debentures – bonds 10,279 10 10,289 13,232 (31 ) 13,201 Commercial paper 2,145 — 2,145 2,097 — 2,097 U.S. Agency bonds 148,944 63 149,007 70,208 (44 ) 70,164 U.S. Treasury bills 8,966 2 8,968 703 (3 ) 700 Asset-Backed Securities 2,817 4 2,821 3,818 (6 ) 3,812 Total corporate investments and funds held for clients $ 418,544 $ 79 $ 418,623 $ 943,450 $ (84 ) $ 943,366 _________________ (1) Included within available-for-sale securities as of September 30, 2016 and December 31, 2015 are corporate investments with fair values of $24.2 million and $20.1 million , respectively. Included within available-for-sale securities as of September 30, 2016 and December 31, 2015 are funds held for customers with fair values of $149.0 million and $69.9 million , respectively. All available-for-sale securities were included in Level 2 of the fair value hierarchy. The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of September 30, 2016 are as follows (in thousands): Securities in unrealized loss position less than 12 months Securities in unrealized loss position greater than 12 months Total Unrealized losses Fair market value Unrealized losses Fair market value Gross unrealized losses Fair market value Corporate debentures – bonds $ (1 ) $ 2,813 $ (3 ) $ 1,697 $ (4 ) $ 4,510 Commercial paper — — — — — — U.S. Agency bonds (25 ) 29,343 — — (25 ) 29,343 U.S. Treasury bills (1 ) 3,710 — — (1 ) 3,710 Asset-Backed Securities — — — — — — Total $ (27 ) $ 35,866 $ (3 ) $ 1,697 $ (30 ) $ 37,563 The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2015 are as follows (in thousands): Securities in unrealized loss position less than 12 months Securities in unrealized loss position greater than 12 months Total Unrealized losses Fair market value Unrealized losses Fair market value Gross unrealized losses Fair market value Corporate debentures – bonds $ (31 ) $ 12,451 $ (1 ) $ 300 $ (32 ) $ 12,751 Commercial paper — — — — — — U.S. Agency bonds (51 ) 70,004 — — (51 ) 70,004 U.S. Treasury bills (3 ) 700 — — (3 ) 700 Asset-Backed Securities (6 ) 3,813 — — (6 ) 3,813 Total $ (91 ) $ 86,968 $ (1 ) $ 300 $ (92 ) $ 87,268 The amortized cost and fair value of the marketable available-for-sale securities, by contractual maturity, as of September 30, 2016 , are shown below (in thousands): September 30, 2016 Amortized Cost Fair Value Due in one year or less $ 149,291 $ 149,367 Due after one year 23,860 23,863 Total $ 173,151 $ 173,230 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. We have had assets in the past, and may have assets in the future, classified within Level 1 of the fair value hierarchy. The types of instruments valued within Level 1, based on quoted market prices in active markets, include certificates of deposit. No assets or investments were classified within Level 1 of the fair value hierarchy as of September 30, 2016 or as of December 31, 2015. We did not have any transfers into and out of Level 1 or Level 2 during the three and nine months ended September 30, 2016 or the twelve months ended December 31, 2015 . No assets or investments were classified as Level 3 as of September 30, 2016 or as of December 31, 2015 . 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 corporate debentures and bonds, commercial paper, U.S. agency bonds and U.S. Treasury bills and asset-backed securities owned by Ultimate. 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 accounted for at fair value as of September 30, 2016 and December 31, 2015 (in thousands): As of September 30, 2016 As of December 31, 2015 Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Corporate debentures and bonds $ 10,289 $ — $ 10,289 $ — $ 13,201 $ — $ 13,201 $ — Commercial paper 2,145 — 2,145 — 2,097 — 2,097 — U.S. Agency bonds 149,007 — 149,007 — 70,164 — 70,164 — U.S. Treasury bills 8,968 — 8,968 — 700 — 700 — Asset-Backed Securities 2,821 — 2,821 — 3,812 — 3,812 — Total $ 173,230 $ — $ 173,230 $ — $ 89,974 $ — $ 89,974 $ — Assets measured at fair value on a recurring basis were presented in the unaudited condensed consolidated balance sheet as of September 30, 2016 and the audited consolidated balance sheet as of December 31, 2015 as short-term and long-term investments in marketable securities. There were no financial liabilities accounted for at fair value as of September 30, 2016 and December 31, 2015 . |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
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 15 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 September 30, 2016 and December 31, 2015 consist of the following (in thousands): As of September 30, 2016 As of December 31, 2015 Computer equipment $ 162,982 $ 140,297 Internal-use software 101,831 75,529 Leasehold improvements 32,693 25,246 Other property and equipment 16,940 13,976 Property and equipment 314,446 255,048 Less: accumulated depreciation and amortization 148,113 129,556 Property and equipment, net $ 166,333 $ 125,492 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 and nine months ended September 30, 2016 , we capitalized $9.2 million and $26.2 million , respectively, 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 $6.7 million and $19.3 million of software development costs related to the Development Project which were capitalized in the three and nine months ended September 30, 2015 , respectively. For the three and nine months ended September 30, 2016 and September 30, 2015, these capitalized costs were primarily direct labor costs. These capitalized costs 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 and nine months ended September 30, 2016 and September 30, 2015, there was $0.3 million and $0.8 million , respectively, 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. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015 consist of the following (in thousands): As of September 30, 2016 As of December 31, 2015 Prepaid commissions on cloud sales $ 29,348 $ 22,119 Other prepaid expenses 16,094 11,978 Other current assets 11,795 12,707 Total prepaid expenses and other current assets $ 57,237 $ 46,804 |
Goodwill & Intangible Assets
Goodwill & Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015 were as follows (in thousands): For the Nine Months Ended Goodwill, December 31, 2015 $ 24,410 Goodwill from Vestrics Acquisition (1) 4,295 Goodwill from Kanjoya Acquisition (2) 6,500 Translation adjustment (3) 378 Goodwill, September 30, 2016 $ 35,583 __________________________ (1) Represents the goodwill recognized for the Vestrics Acquisition on May 11, 2016. See Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements. (2) Represents the estimated goodwill recognized for the Kanjoya Acquisition, which occurred on September 29, 2016. See Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements. (3) 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 income (loss). Intangible Assets The following tables present our acquired intangible assets as of the dates specified below (in thousands): September 30, 2016 Gross Carrying Amount Accumulated Amortization Cumulative Translation Adjustment (1) Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 23,200 $ (1,893 ) $ (975 ) $ 20,332 6.7 Customer relationships 4,200 (991 ) — 3,209 7.1 Non-compete agreements 300 (290 ) — 10 0.1 $ 27,700 $ (3,174 ) $ (975 ) $ 23,551 6.7 December 31, 2015 Gross Carrying Amount Accumulated Amortization Cumulative Translation Adjustment (1) Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 5,200 $ (1,463 ) $ (1,112 ) $ 2,625 4.8 Customer relationships 3,200 (736 ) (4 ) 2,460 7.8 Non-compete agreements 300 (216 ) (2 ) 82 0.9 $ 8,700 $ (2,415 ) $ (1,118 ) $ 5,167 6.2 ____________________________ (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 $255 thousand and $759 thousand for the three and nine months ended September 30, 2016 , respectively, and $255 thousand and $783 thousand for the three and nine months ended September 30, 2015 , respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
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 and nine months ended September 30, 2016 and 2015 (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Basic weighted average shares outstanding 28,977 28,603 28,901 28,592 Effect of dilutive equity instruments 1,498 1,112 1,459 1,059 Diluted weighted average shares outstanding 30,475 29,715 30,360 29,651 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 — — 11 11 |
Foreign Currency
Foreign Currency | 9 Months Ended |
Sep. 30, 2016 | |
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 and nine months ended September 30, 2016 and September 30, 2015 . For the three and nine months ended September 30, 2016 , Ultimate had an unrealized translation loss of $0.3 million and an unrealized translation gain of $1.3 million , respectively. For the three and nine months ended September 30, 2015 , Ultimate had an unrealized translation loss of $2.0 million and $3.5 million , respectively. Included in accumulated other comprehensive loss, as presented in the accompanying unaudited condensed consolidated balance sheets, are cumulative unrealized translation losses of $6.5 million as of September 30, 2016 and $7.8 million as of December 31, 2015 . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
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”). At the 2016 Annual Meeting of Stockholders, held on May 16, 2016 (the “2016 Annual Meeting”), the stockholders of Ultimate approved the Plan, including an amendment to increase the number of shares of our Common Stock authorized for issuance pursuant to Awards granted under the Plan by 1,090,000 shares. As of September 30, 2016 , the aggregate number of shares of Common Stock that were available to be issued under all Awards granted under the Plan was 1,094,376 shares. A complete copy of the Plan is contained in Ultimate's Form 8-K that was filed with the SEC on May 17, 2016. 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 September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Non-cash stock-based compensation expense: Cost of recurring revenues $ 2,208 $ 1,655 $ 6,306 $ 4,628 Cost of services revenues 1,543 1,242 4,564 3,710 Sales and marketing 15,236 11,000 43,919 29,534 Research and development 2,160 1,489 5,927 4,579 General and administrative 8,198 6,523 23,686 17,312 Total non-cash stock-based compensation expense $ 29,345 $ 21,909 $ 84,402 $ 59,763 Stock-based compensation for the three and nine months ended September 30, 2016 was $29.3 million and $84.4 million , respectively, as compared with stock-based compensation of $21.9 million and $59.8 million for the three and nine months ended September 30, 2015 , respectively. The increases of $7.4 million and $24.6 million in stock-based compensation for the three and nine month periods, respectively, included increases of $4.1 million and $15.6 million , respectively, associated with modifications made to the Company’s change in control plans in March 2015 and February 2016 which significantly reduced the potential payments that could be made under such plans. As previously disclosed, these changes were made to better align management's incentives with long-term value creation for our shareholders. As part of the modifications in connection with unwinding the change in control plans, time-based restricted stock awards (vesting over three years) were granted to certain senior officers in March 2015 and February 2016. Net cash proceeds from the exercise of Options were $0.9 million and $3.6 million for the three and nine months ended September 30, 2016 , respectively, and $1.3 million and $3.6 million for the three and nine months ended September 30, 2015 . We elected to early adopt ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09") during the third quarter of fiscal year 2016 which requires us to reflect any adjustments as of January 1, 2016. The standard amends the accounting for certain aspects of share-based payments to employees. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital for all periods in fiscal year 2016. We elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively to all periods presented which resulted in an increase to both net cash from operations and net cash used in financing of $25.9 million for the nine months ended September 30, 2015. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented in our unaudited consolidated cash flows statements since such cash flows have historically been presented as a financing activity. Adoption of the new standard resulted in the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital of $3.3 million and $11.9 million for the three and nine months ended September 30, 2016, respectively. Stock Option, Restricted Stock and Restricted Stock Unit Activity There were no Options granted during the three and nine months ended September 30, 2016 . The following table summarizes stock option activity (for previously granted Options) for the nine months ended September 30, 2016 (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, 2015 532 $ 27.36 1.8 $ 89,373 Granted — — 0 — Exercised (148 ) 24.64 0 — Forfeited or expired — — 0 — Outstanding at September 30, 2016 384 $ 28.41 1.3 $ 67,563 Exercisable at September 30, 2016 384 $ 28.41 1.3 $ 67,563 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 September 30, 2016 . The amount of the aggregate intrinsic value changes, based on the fair value of Common Stock. Total intrinsic value of Options exercised was $6.5 million and $24.9 million for the three and nine months ended September 30, 2016 , respectively, and $8.3 million and $22.3 million , for the three and nine months ended September 30, 2015 , respectively. All previously granted Options were fully vested as of December 31, 2011 and, therefore, no Options vested during the three and nine months ended September 30, 2016 and September 30, 2015 , respectively. As of September 30, 2016 , 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. The following table summarizes restricted stock awards and restricted stock unit awards granted during the three months ended September 30, 2016 and September 30, 2015 (in thousands): For the Three Months Ended September 30, 2016 2015 Restricted Stock Awards: Non-Employee Directors 2 2 Total Restricted Stock Awards Granted 2 2 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 48 47 Total Restricted Stock Unit Awards Granted 48 47 The following table summarizes the activity pertaining to Common Stock previously issued under restricted stock awards and restricted stock unit awards which vested during the three months ended September 30, 2016 and September 30, 2015 (in thousands): For the Three Months Ended September 30, 2016 2015 Shares Vested Shares Retained (1) Amount Retained (in millions) (1) Shares Issued Shares Vested Shares Retained (1) Amount Retained (in millions) (1) Shares Issued Restricted Stock Awards: Non-Employee Directors 5 — $0.0 5 6 — $0.0 6 Total Restricted Stock Awards 5 — $0.0 5 6 — $0.0 6 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 29 10 $2.1 19 28 10 $1.7 19 Total Restricted Stock Unit Awards 29 10 $2.1 19 28 10 $1.7 19 ______________________________ (1) During the three months ended September 30, 2016 and September 30, 2015 , of the shares released, 9,930 and 9,521 shares, respectively, were retained by Ultimate and not issued, in satisfaction of withholding payroll tax requirements applicable to the payment of such awards. The following table summarizes restricted stock award and restricted stock unit activity for the nine months ended September 30, 2016 (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, 2015 1,366 $ 142.61 435 Granted 358 156.73 316 Vested and Released (180 ) 154.11 (189 ) Forfeited or expired — — (15 ) Outstanding at September 30, 2016 1,544 $ 144.55 547 As of September 30, 2016 , $118.1 million of total unrecognized compensation costs related to non-vested restricted stock awards were expected to be recognized over a weighted average period of 1.3 years. As of September 30, 2016 , $64.1 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 1.9 years. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Fair Value of Financial Instruments | 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 September 30, 2016 and December 31, 2015 . |
Recently Issued and Adopted Accounting Standards | 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 (Topic 606)" ("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. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date" ("ASU 2015-14"), which defers the effective date of ASU 2014-09 for all entities by one year. Under ASU 2015-14, the new standard is effective for Ultimate on January 1, 2018. Early adoption will be permitted, but not before the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. In March 2016, the FASB issued ASU 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)" ("ASU 2016-08"), in April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing" ("ASU 2016-10"), and in May 2016, the FASB issued ASU 2016-12, "Narrow-Scope Improvements and Practical Expedients", all which clarify the guidance in ASU 2014-09 and have the same effective dates as the original standard. 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 November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17”). ASU 2015-17 requires entities to offset all deferred tax assets and liabilities (and valuation allowances) for each tax-paying jurisdiction within each tax-paying component and present the net deferred tax as a single noncurrent amount in a classified balance sheet. The new standard is effective for Ultimate on January 1, 2017 and early adoption is permitted. The standard permits the use of either the prospective or retrospective method. We are evaluating the effect that ASU 2015-17 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method. In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is effective for Ultimate on January 1, 2019 and early adoption is permitted. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. We have not yet determined the effect the standard will have on our ongoing financial reporting. Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). The standard amends the accounting for certain aspects of share-based payments to employees. The standard requires transition for specific objectives of the standard. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, and forfeitures should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement should be applied prospectively. Further, an entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. The new standard is effective for us beginning January 1, 2017, with early adoption permitted. We elected to early adopt the new guidance in the third quarter of fiscal year 2016 which requires us to reflect any cumulative-effect and prospective method adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than additional paid-in capital for all periods in fiscal year 2016. Prior to the adoption of ASU 2016-09, companies could not recognize excess tax benefits (the amount by which the tax deduction exceeds the financial statement expense previously recorded) when a restricted stock unit or restricted stock award vested or an option was exercised if the related tax deduction resulted in an increase to a net operating loss carryforward rather than a reduction in income taxes payable. Consequently, the excess tax benefits were credited to additional paid-in-capital and a deferred tax asset was established, only to the extent realized through a reduction in income taxes payable, which resulted in the excess tax benefits being included in Ultimate’s net operating loss carryforwards, while being excluded from deferred tax assets on the balance sheet. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. Adoption of the new standard resulted in a $39.7 million cumulative-effect adjustment as of January 1, 2016 to record a deferred tax asset with the offset to retained earnings in the balance sheet, representing the amount of our net operating loss carryforwards attributable to excess tax benefits. Additional amendments to the accounting for minimum statutory withholding tax requirements had no impact to retained earnings as of January 1, 2016, where the cumulative effect of these changes is required to be recorded. We have elected to continue to estimate forfeitures expected to occur to determine the amount of non-cash stock-based compensation costs to be recognized in each period. We elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively to all periods presented which resulted in an increase to both net cash from operations and net cash used in financing of $25.9 million for the nine months ended September 30, 2015. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented in our unaudited consolidated cash flows statements since such cash flows have historically been presented as a financing activity. Adoption of the new standard resulted in the recognition of excess tax benefits in our provision for income taxes rather than additional paid-in capital of $3.3 million and $11.9 million for the three and nine months ended September 30, 2016, respectively, and impacted our previously reported quarterly results for fiscal year 2016 as follows (in thousands, except earnings per share data): Three Months Ended June 30, 2016 Three Months Ended March 31, 2016 As reported As adjusted As reported As adjusted Income statements: Provision for income taxes $ 6,708 $ 2,263 $ 6,811 $ 2,646 Net income $ 1,677 $ 6,122 $ 2,435 $ 6,600 Diluted earnings per share $ 0.06 $ 0.20 $ 0.08 $ 0.22 Diluted weighted average shares outstanding 29,893 30,240 29,833 30,108 Cash flows statements: Net cash provided by operating activities $ 52,476 $ 65,606 $ 32,059 $ 38,649 Net cash (used in) provided by financing activities $ (27,517 ) $ (40,647 ) $ 348,116 $ 341,526 Balance sheets: Additional paid-in-capital $ 517,912 $ 504,782 $ 480,961 $ 474,371 Accumulated earnings $ 63,739 $ 72,349 $ 62,062 $ 66,227 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 became effective for Ultimate on January 1, 2016. The standard permits the use of either the prospective or retrospective method. The effect of the adoption of ASU 2015-05 has had no material impact on our unaudited condensed consolidated financial statements and related disclosures. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | Adoption of the new standard resulted in the recognition of excess tax benefits in our provision for income taxes rather than additional paid-in capital of $3.3 million and $11.9 million for the three and nine months ended September 30, 2016, respectively, and impacted our previously reported quarterly results for fiscal year 2016 as follows (in thousands, except earnings per share data): Three Months Ended June 30, 2016 Three Months Ended March 31, 2016 As reported As adjusted As reported As adjusted Income statements: Provision for income taxes $ 6,708 $ 2,263 $ 6,811 $ 2,646 Net income $ 1,677 $ 6,122 $ 2,435 $ 6,600 Diluted earnings per share $ 0.06 $ 0.20 $ 0.08 $ 0.22 Diluted weighted average shares outstanding 29,893 30,240 29,833 30,108 Cash flows statements: Net cash provided by operating activities $ 52,476 $ 65,606 $ 32,059 $ 38,649 Net cash (used in) provided by financing activities $ (27,517 ) $ (40,647 ) $ 348,116 $ 341,526 Balance sheets: Additional paid-in-capital $ 517,912 $ 504,782 $ 480,961 $ 474,371 Accumulated earnings $ 63,739 $ 72,349 $ 62,062 $ 66,227 |
Investments in Marketable Sec20
Investments in Marketable Securities and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 funds held for customers and corporate investments in marketable available-for-sale securities as of September 30, 2016 and December 31, 2015 are shown below (in thousands): As of September 30, 2016 As of December 31, 2015 Amortized Cost Net Unrealized Gain Fair Value (1) Amortized Cost Net Unrealized (Loss) Fair Value (1) Type of issue: Funds held for clients – money market securities and other cash equivalents $ 245,393 $ — $ 245,393 $ 853,392 $ — $ 853,392 Available-for-sale securities: Corporate debentures – bonds 10,279 10 10,289 13,232 (31 ) 13,201 Commercial paper 2,145 — 2,145 2,097 — 2,097 U.S. Agency bonds 148,944 63 149,007 70,208 (44 ) 70,164 U.S. Treasury bills 8,966 2 8,968 703 (3 ) 700 Asset-Backed Securities 2,817 4 2,821 3,818 (6 ) 3,812 Total corporate investments and funds held for clients $ 418,544 $ 79 $ 418,623 $ 943,450 $ (84 ) $ 943,366 _________________ (1) Included within available-for-sale securities as of September 30, 2016 and December 31, 2015 are corporate investments with fair values of $24.2 million and $20.1 million , respectively. Included within available-for-sale securities as of September 30, 2016 and December 31, 2015 are funds held for customers with fair values of $149.0 million and $69.9 million , respectively. All available-for-sale securities were included in Level 2 of the fair value hierarchy. |
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 September 30, 2016 , are shown below (in thousands): September 30, 2016 Amortized Cost Fair Value Due in one year or less $ 149,291 $ 149,367 Due after one year 23,860 23,863 Total $ 173,151 $ 173,230 |
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 accounted for at fair value as of September 30, 2016 and December 31, 2015 (in thousands): As of September 30, 2016 As of December 31, 2015 Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Corporate debentures and bonds $ 10,289 $ — $ 10,289 $ — $ 13,201 $ — $ 13,201 $ — Commercial paper 2,145 — 2,145 — 2,097 — 2,097 — U.S. Agency bonds 149,007 — 149,007 — 70,164 — 70,164 — U.S. Treasury bills 8,968 — 8,968 — 700 — 700 — Asset-Backed Securities 2,821 — 2,821 — 3,812 — 3,812 — Total $ 173,230 $ — $ 173,230 $ — $ 89,974 $ — $ 89,974 $ — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment as of September 30, 2016 and December 31, 2015 consist of the following (in thousands): As of September 30, 2016 As of December 31, 2015 Computer equipment $ 162,982 $ 140,297 Internal-use software 101,831 75,529 Leasehold improvements 32,693 25,246 Other property and equipment 16,940 13,976 Property and equipment 314,446 255,048 Less: accumulated depreciation and amortization 148,113 129,556 Property and equipment, net $ 166,333 $ 125,492 |
Prepaid Expenses and Other Cu22
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid expenses and other current assets | Prepaid expenses and other current assets as of September 30, 2016 and December 31, 2015 consist of the following (in thousands): As of September 30, 2016 As of December 31, 2015 Prepaid commissions on cloud sales $ 29,348 $ 22,119 Other prepaid expenses 16,094 11,978 Other current assets 11,795 12,707 Total prepaid expenses and other current assets $ 57,237 $ 46,804 |
Goodwill & Intangible Assets (T
Goodwill & Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying value of goodwill since December 31, 2015 were as follows (in thousands): For the Nine Months Ended Goodwill, December 31, 2015 $ 24,410 Goodwill from Vestrics Acquisition (1) 4,295 Goodwill from Kanjoya Acquisition (2) 6,500 Translation adjustment (3) 378 Goodwill, September 30, 2016 $ 35,583 __________________________ (1) Represents the goodwill recognized for the Vestrics Acquisition on May 11, 2016. See Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements. (2) Represents the estimated goodwill recognized for the Kanjoya Acquisition, which occurred on September 29, 2016. See Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements. (3) 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 income (loss). |
Schedule of Finite-Lived Intangible Assets | The following tables present our acquired intangible assets as of the dates specified below (in thousands): September 30, 2016 Gross Carrying Amount Accumulated Amortization Cumulative Translation Adjustment (1) Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 23,200 $ (1,893 ) $ (975 ) $ 20,332 6.7 Customer relationships 4,200 (991 ) — 3,209 7.1 Non-compete agreements 300 (290 ) — 10 0.1 $ 27,700 $ (3,174 ) $ (975 ) $ 23,551 6.7 December 31, 2015 Gross Carrying Amount Accumulated Amortization Cumulative Translation Adjustment (1) Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 5,200 $ (1,463 ) $ (1,112 ) $ 2,625 4.8 Customer relationships 3,200 (736 ) (4 ) 2,460 7.8 Non-compete agreements 300 (216 ) (2 ) 82 0.9 $ 8,700 $ (2,415 ) $ (1,118 ) $ 5,167 6.2 ____________________________ (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) | 9 Months Ended |
Sep. 30, 2016 | |
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 and nine months ended September 30, 2016 and 2015 (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Basic weighted average shares outstanding 28,977 28,603 28,901 28,592 Effect of dilutive equity instruments 1,498 1,112 1,459 1,059 Diluted weighted average shares outstanding 30,475 29,715 30,360 29,651 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 — — 11 11 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Non-cash stock-based compensation expense: Cost of recurring revenues $ 2,208 $ 1,655 $ 6,306 $ 4,628 Cost of services revenues 1,543 1,242 4,564 3,710 Sales and marketing 15,236 11,000 43,919 29,534 Research and development 2,160 1,489 5,927 4,579 General and administrative 8,198 6,523 23,686 17,312 Total non-cash stock-based compensation expense $ 29,345 $ 21,909 $ 84,402 $ 59,763 |
Summary of stock option activity | The following table summarizes stock option activity (for previously granted Options) for the nine months ended September 30, 2016 (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, 2015 532 $ 27.36 1.8 $ 89,373 Granted — — 0 — Exercised (148 ) 24.64 0 — Forfeited or expired — — 0 — Outstanding at September 30, 2016 384 $ 28.41 1.3 $ 67,563 Exercisable at September 30, 2016 384 $ 28.41 1.3 $ 67,563 |
Schedule of restricted stock awards and restricted stock unit awards granted | The following table summarizes restricted stock awards and restricted stock unit awards granted during the three months ended September 30, 2016 and September 30, 2015 (in thousands): For the Three Months Ended September 30, 2016 2015 Restricted Stock Awards: Non-Employee Directors 2 2 Total Restricted Stock Awards Granted 2 2 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 48 47 Total Restricted Stock Unit Awards Granted 48 47 |
Schedule of activity pertaining to restricted awards vested | The following table summarizes the activity pertaining to Common Stock previously issued under restricted stock awards and restricted stock unit awards which vested during the three months ended September 30, 2016 and September 30, 2015 (in thousands): For the Three Months Ended September 30, 2016 2015 Shares Vested Shares Retained (1) Amount Retained (in millions) (1) Shares Issued Shares Vested Shares Retained (1) Amount Retained (in millions) (1) Shares Issued Restricted Stock Awards: Non-Employee Directors 5 — $0.0 5 6 — $0.0 6 Total Restricted Stock Awards 5 — $0.0 5 6 — $0.0 6 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 29 10 $2.1 19 28 10 $1.7 19 Total Restricted Stock Unit Awards 29 10 $2.1 19 28 10 $1.7 19 ______________________________ (1) During the three months ended September 30, 2016 and September 30, 2015 , of the shares released, 9,930 and 9,521 shares, respectively, were retained by Ultimate and not issued, in satisfaction of withholding payroll tax requirements applicable to the payment of such awards. |
Summary of restricted stock award and restricted stock unit activity | The following table summarizes restricted stock award and restricted stock unit activity for the nine months ended September 30, 2016 (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, 2015 1,366 $ 142.61 435 Granted 358 156.73 316 Vested and Released (180 ) 154.11 (189 ) Forfeited or expired — — (15 ) Outstanding at September 30, 2016 1,544 $ 144.55 547 |
Nature of Operations (Details)
Nature of Operations (Details) | Sep. 30, 2016employeecountry |
Nature of Operations [Line Items] | |
Number of country-specific localizations (more than 35) | country | 35 |
UltiPro Enterprise solution suite, minimum number of employees | 2,500 |
UltiPro Enterprise solution suite, company size, number of employees (10,000 or more) | 10,000 |
Minimum | |
Nature of Operations [Line Items] | |
UltiPro Enterprise solution suite, enterprise company size, number of employees | 1,501 |
UltiPro enterprise solution suite, number of employees in mid-market companies | 501 |
Number Of employees in companies as a strategic market | 300 |
Maximum | |
Nature of Operations [Line Items] | |
UltiPro Enterprise solution suite, enterprise company size, number of employees | 2,500 |
UltiPro enterprise solution suite, number of employees in mid-market companies | 1,500 |
Number Of employees in companies as a strategic market | 500 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Jan. 01, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Increase in cash provided by operating activities | $ 115,349 | $ 101,445 | ||||
Increase in cash provided by financing activities | (579,504) | (471,896) | ||||
Excess tax benefit recognized | $ 3,300 | $ 11,900 | ||||
New Accounting Pronouncement, Early Adoption, Effect | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Increase in cash provided by operating activities | $ 65,606 | $ 38,649 | ||||
Increase in cash provided by financing activities | $ (40,647) | $ 341,526 | ||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09, Excess Tax Benefit Component | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Deferred income tax assets, net | $ 39,700 | |||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09, Excess Tax Benefit Component | Retained Earnings | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cumulative dffect of new accounting principle in period of adoption | $ 39,700 | |||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09, Statutory Tax Withholding Component | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Increase in cash provided by operating activities | 25,900 | |||||
Increase in cash provided by financing activities | $ 25,900 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies and Recent Accounting Pronouncements - Adjustments (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Provision for income taxes | $ 3,801 | $ 5,700 | $ 8,713 | $ 15,125 | |||
Net Income | $ 4,763 | $ 5,851 | $ 17,482 | $ 13,668 | |||
Diluted (in dollars per share) | $ 0.16 | $ 0.20 | $ 0.58 | $ 0.46 | |||
Diluted weighted average shares outstanding (in shares) | 30,475 | 29,715 | 30,360 | 29,651 | |||
Net cash provided by operating activities | $ 115,349 | $ 101,445 | |||||
Net cash (used in) provided by financing activities | (579,504) | $ (471,896) | |||||
Additional paid-in capital | $ 533,805 | 533,805 | $ 463,609 | ||||
Accumulated earnings | $ 116,855 | $ 116,855 | $ 59,627 | ||||
New Accounting Pronouncement, Early Adoption, Effect | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Provision for income taxes | $ 2,263 | $ 2,646 | |||||
Net Income | $ 6,122 | $ 6,600 | |||||
Diluted (in dollars per share) | $ 0.20 | $ 0.22 | |||||
Diluted weighted average shares outstanding (in shares) | 30,240 | 30,108 | |||||
Net cash provided by operating activities | $ 65,606 | $ 38,649 | |||||
Net cash (used in) provided by financing activities | (40,647) | 341,526 | |||||
Additional paid-in capital | 504,782 | 474,371 | |||||
Accumulated earnings | 72,349 | 66,227 | |||||
New Accounting Pronouncement, Early Adoption, Effect | As reported | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Provision for income taxes | 6,708 | 6,811 | |||||
Net Income | $ 1,677 | $ 2,435 | |||||
Diluted (in dollars per share) | $ 0.06 | $ 0.08 | |||||
Diluted weighted average shares outstanding (in shares) | 29,893 | 29,833 | |||||
Net cash provided by operating activities | $ 52,476 | $ 32,059 | |||||
Net cash (used in) provided by financing activities | (27,517) | 348,116 | |||||
Additional paid-in capital | 517,912 | 480,961 | |||||
Accumulated earnings | $ 63,739 | $ 62,062 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | May 11, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Payments for acquisitions | $ 25,775 | $ 0 | |||
Goodwill | $ 35,583 | 35,583 | $ 24,410 | ||
Vestrics Acquisition | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 10,100 | ||||
Payments for acquisitions | 9,100 | ||||
Consideration held in escrow | $ 1,000 | $ 1,000 | |||
Goodwill | 4,300 | ||||
Working capital, net | 200 | ||||
Identifiable intangible assets acquired | $ 6,000 | ||||
Weighted average amortization period | 7 years |
Business Combinations - Acquisi
Business Combinations - Acquisition of Kanjoya, Inc. (Details) - USD ($) $ in Thousands | Sep. 29, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Payments for acquisitions | $ 25,775 | $ 0 | |||
Goodwill | $ 35,583 | 35,583 | $ 24,410 | ||
Kanjoya, Inc. | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 19,500 | ||||
Payments for acquisitions | 16,700 | ||||
Escrow deposit | $ 2,900 | $ 2,900 | |||
Intangible assets | 13,000 | ||||
Goodwill | 6,500 | ||||
Developed technology | Kanjoya, Inc. | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 12,000 | ||||
Customer relationships | Kanjoya, Inc. | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 1,000 |
Investments in Marketable Sec31
Investments in Marketable Securities and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Funds held for clients – money market securities and other cash equivalents | $ 245,393 | $ 853,392 |
Unrealized Gain | 79 | (84) |
Fair Value | 173,230 | 89,974 |
Total corporate investments and funds held for clients - amortized cost basis | 418,544 | 943,450 |
Total corporate investments and funds held for clients - fair value | 418,623 | 943,366 |
Amortized Cost Basis | ||
Due in one year or less | 149,291 | |
Due after one year | 23,860 | |
Total | 173,151 | |
Fair Value | ||
Due in one year or less | 149,367 | |
Due after one year | 23,863 | |
Total | 173,230 | 89,974 |
Corporate debentures and bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,279 | 13,232 |
Unrealized Gain | 10 | (31) |
Fair Value | 10,289 | 13,201 |
Fair Value | ||
Total | 10,289 | 13,201 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,145 | 2,097 |
Unrealized Gain | 0 | 0 |
Fair Value | 2,145 | 2,097 |
Fair Value | ||
Total | 2,145 | 2,097 |
U.S. Agency bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 148,944 | 70,208 |
Unrealized Gain | 63 | (44) |
Fair Value | 149,007 | 70,164 |
Fair Value | ||
Total | 149,007 | 70,164 |
U.S. Treasury bills | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,966 | 703 |
Unrealized Gain | 2 | (3) |
Fair Value | 8,968 | 700 |
Fair Value | ||
Total | 8,968 | 700 |
Asset-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,817 | 3,818 |
Unrealized Gain | 4 | (6) |
Fair Value | 2,821 | 3,812 |
Fair Value | ||
Total | 2,821 | 3,812 |
Corporate Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 24,200 | 20,100 |
Fair Value | ||
Total | 24,200 | 20,100 |
Funds Held For Customers | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 149,000 | 69,900 |
Fair Value | ||
Total | $ 149,000 | $ 69,900 |
Investments in Marketable Sec32
Investments in Marketable Securities and Fair Value of Financial Instruments Investments in Marketable Securities and Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized losses | $ (27) | $ (91) |
Fair market value | 35,866 | 86,968 |
Unrealized losses | (3) | (1) |
Fair market value | 1,697 | 300 |
Gross unrealized losses | (30) | (92) |
Fair market value | 37,563 | 87,268 |
Corporate debentures and bonds | 10,289 | 13,201 |
Commercial paper | 2,145 | 2,097 |
U.S. Agency bonds | 149,007 | 70,164 |
U.S. Treasury bills | 8,968 | 700 |
Asset-Backed Securities | 2,821 | 3,812 |
Total | 173,230 | 89,974 |
(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 | 10,289 | 13,201 |
Commercial paper | 2,145 | 2,097 |
U.S. Agency bonds | 149,007 | 70,164 |
U.S. Treasury bills | 8,968 | 700 |
Asset-Backed Securities | 2,821 | 3,812 |
Total | 173,230 | 89,974 |
(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 |
Corporate debentures and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized losses | (1) | (31) |
Fair market value | 2,813 | 12,451 |
Unrealized losses | (3) | (1) |
Fair market value | 1,697 | 300 |
Gross unrealized losses | (4) | (32) |
Fair market value | 4,510 | 12,751 |
Total | 10,289 | 13,201 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
U.S. Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized losses | (25) | (51) |
Fair market value | 29,343 | 70,004 |
Unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | (25) | (51) |
Fair market value | 29,343 | 70,004 |
Total | 149,007 | 70,164 |
U.S. Treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized losses | (1) | (3) |
Fair market value | 3,710 | 700 |
Unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | (1) | (3) |
Fair market value | 3,710 | 700 |
Total | 8,968 | 700 |
Asset-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized losses | 0 | (6) |
Fair market value | 0 | 3,813 |
Unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | 0 | (6) |
Fair market value | 0 | 3,813 |
Total | $ 2,821 | $ 3,812 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Capital Leased Assets [Line Items] | |||||
Property and equipment | $ 314,446 | $ 314,446 | $ 255,048 | ||
Less: accumulated depreciation and amortization | 148,113 | 148,113 | 129,556 | ||
Property and equipment, net | 166,333 | 166,333 | 125,492 | ||
Capitalized Computer Software, Additions | 9,200 | $ 6,700 | 26,200 | $ 19,300 | |
Computer equipment | |||||
Capital Leased Assets [Line Items] | |||||
Property and equipment | 162,982 | 162,982 | 140,297 | ||
Internal-use software | |||||
Capital Leased Assets [Line Items] | |||||
Property and equipment | 101,831 | 101,831 | 75,529 | ||
Leasehold Improvements | |||||
Capital Leased Assets [Line Items] | |||||
Property and equipment | 32,693 | 32,693 | 25,246 | ||
Other property and equipment | |||||
Capital Leased Assets [Line Items] | |||||
Property and equipment | 16,940 | $ 16,940 | $ 13,976 | ||
Minimum | Property and equipment | |||||
Capital Leased Assets [Line Items] | |||||
Estimated useful life (in years) | 2 years | ||||
Minimum | Leasehold Improvements | |||||
Capital Leased Assets [Line Items] | |||||
Estimated useful life (in years) | 3 years | ||||
Maximum | Property and equipment | |||||
Capital Leased Assets [Line Items] | |||||
Estimated useful life (in years) | 15 years | ||||
Maximum | Leasehold Improvements | |||||
Capital Leased Assets [Line Items] | |||||
Estimated useful life (in years) | 15 years | ||||
Development Project, eRecruitment [Member] | Internal-use software | |||||
Capital Leased Assets [Line Items] | |||||
Amortization | $ 300 | $ 300 | $ 800 | $ 800 |
Prepaid Expenses and Other Cu34
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid commissions | $ 29,348 | $ 22,119 |
Other Prepaid Expense | 16,094 | 11,978 |
Other Assets | 11,795 | 12,707 |
Total prepaid expenses and other current assets | $ 57,237 | $ 46,804 |
Goodwill & Intangible Assets Go
Goodwill & Intangible Assets Goodwill and Intangible Assets (Goodwill) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, December 31, 2015 | $ 24,410 |
Translation adjustment | 378 |
Goodwill, September 30, 2016 | 35,583 |
Vestrics Acquisition | |
Goodwill [Roll Forward] | |
Goodwill from Acquisition | 4,295 |
Kanjoya, Inc. | |
Goodwill [Roll Forward] | |
Goodwill from Acquisition | $ 6,500 |
Goodwill & Intangible Assets (D
Goodwill & Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 27,700 | $ 27,700 | $ 8,700 | ||
Accumulated Amortization | (3,174) | (3,174) | (2,415) | ||
Cumulative Translation Adjustment | (975) | (1,118) | |||
Net Carrying Amount | 23,551 | $ 23,551 | $ 5,167 | ||
Estimated Useful Lives | 6 years 8 months 12 days | 6 years 1 month 25 days | |||
Amortization of acquired intangible assets | 255 | $ 255 | $ 759 | $ 783 | |
Developed technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 23,200 | 23,200 | $ 5,200 | ||
Accumulated Amortization | (1,893) | (1,893) | (1,463) | ||
Cumulative Translation Adjustment | (975) | (1,112) | |||
Net Carrying Amount | 20,332 | $ 20,332 | $ 2,625 | ||
Estimated Useful Lives | 6 years 8 months 12 days | 4 years 9 months | |||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 4,200 | $ 4,200 | $ 3,200 | ||
Accumulated Amortization | (991) | (991) | (736) | ||
Cumulative Translation Adjustment | 0 | (4) | |||
Net Carrying Amount | 3,209 | $ 3,209 | $ 2,460 | ||
Estimated Useful Lives | 7 years 1 month 6 days | 7 years 9 months 26 days | |||
Non-compete agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 300 | $ 300 | $ 300 | ||
Accumulated Amortization | (290) | (290) | (216) | ||
Cumulative Translation Adjustment | 0 | (2) | |||
Net Carrying Amount | $ 10 | $ 10 | $ 82 | ||
Estimated Useful Lives | 1 month 6 days | 10 months 10 days | |||
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated Useful Lives | 3 years | ||||
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Estimated Useful Lives | 10 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||
Common Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Basic weighted average shares outstanding | 28,977 | 28,603 | 28,901 | 28,592 | |
Effect of dilutive equity instruments | 1,498 | 1,112 | 1,459 | 1,059 | |
Diluted weighted average shares outstanding | 30,475 | 29,715 | 30,360 | 29,651 | |
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 | 0 | 0 | 11 | 11 |
Foreign Currency (Details)
Foreign Currency (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Foreign Currency [Abstract] | |||||
Cumulative unrealized translation losses | $ (0.3) | $ (2) | $ 1.3 | $ (3.5) | |
Unrealized translation loss included in accumulated other comprehensive income | $ (6.5) | $ (6.5) | $ (7.8) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | May 16, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Additional shares authorized | 1,090,000 | ||||||
Non-cash stock-based compensation expense | $ 29,345 | $ 21,909 | $ 84,401 | $ 59,763 | |||
Increase in share-based compensation | 7,400 | 24,600 | |||||
Net cash proceeds from the exercise of stock options | 3,639 | 3,646 | |||||
Increase in cash provided by operating activities | 115,349 | 101,445 | |||||
Increase in cash provided by financing activities | (579,504) | (471,896) | |||||
Excess tax benefit recognized | 3,300 | 11,900 | |||||
Cost of recurring revenues | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Non-cash stock-based compensation expense | 2,208 | 1,655 | 6,306 | 4,628 | |||
Cost of services revenues | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Non-cash stock-based compensation expense | 1,543 | 1,242 | 4,564 | 3,710 | |||
Sales and marketing | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Non-cash stock-based compensation expense | 15,236 | 11,000 | 43,919 | 29,534 | |||
Research and development | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Non-cash stock-based compensation expense | 2,160 | 1,489 | 5,927 | 4,579 | |||
General and administrative | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Non-cash stock-based compensation expense | 8,198 | 6,523 | 23,686 | 17,312 | |||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Net cash proceeds from the exercise of stock options | $ 900 | $ 1,300 | $ 3,600 | 3,600 | |||
Amended and Restated 2005 Equity and Incentive Plan | |||||||
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) | 1,094,376 | 1,094,376 | |||||
March 2015 and February 2016 control plans change | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Increase in share-based compensation | $ 4,100 | $ 15,600 | |||||
New Accounting Pronouncement, Early Adoption, Effect | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Increase in cash provided by operating activities | $ 65,606 | $ 38,649 | |||||
Increase in cash provided by financing activities | $ (40,647) | $ 341,526 | |||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09, Statutory Tax Withholding Component | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Increase in cash provided by operating activities | 25,900 | ||||||
Increase in cash provided by financing activities | $ 25,900 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Details 1) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Outstanding at beginning of period (in shares) | 532 | ||||
Granted (in shares) | 0 | 0 | |||
Exercised (in shares) | (148) | ||||
Forfeited or expired (in shares) | 0 | ||||
Outstanding at end of period (in shares) | 384 | 384 | 532 | ||
Exercisable at end of period (in shares) | 384 | 384 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Outstanding at beginning of period (in dollars per share) | $ 27.36 | ||||
Granted (in dollars per share) | 0 | ||||
Exercised (in dollars per share) | 24.64 | ||||
Forfeited or expired (in dollars per share) | 0 | ||||
Outstanding at end of period (in dollars per share) | $ 28.41 | 28.41 | $ 27.36 | ||
Exercisable at end of period (in dollars per share) | $ 28.41 | $ 28.41 | |||
Weighted Average Remaining Contractual Term [Abstract] | |||||
Outstanding at beginning of period (in years) | 1 year 3 months 11 days | 1 year 9 months 4 days | |||
Granted (in years) | 0 years | ||||
Exercised (in years) | 0 years | ||||
Forfeited or expired (in years) | 0 years | ||||
Outstanding at end of period (in years) | 1 year 3 months 11 days | 1 year 9 months 4 days | |||
Exercisable at end of period (in years) | 1 year 3 months 11 days | ||||
Aggregate Intrinsic Value [Abstract] | |||||
Outstanding at beginning of period | $ 89,373,000 | ||||
Granted | 0 | ||||
Exercised | 0 | ||||
Forfeited or expired | 0 | ||||
Outstanding at end of period | $ 67,563,000 | 67,563,000 | $ 89,373,000 | ||
Exercisable at end of period | 67,563,000 | 67,563,000 | |||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||
Total intrinsic value of options exercised | 6,500,000 | $ 8,300,000 | 24,900,000 | $ 22,300,000 | |
Options vested | 0 | $ 0 | |||
Total unrecognized compensation costs | $ 0 | $ 0 | |||
Restricted Stock | |||||
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) | 1,366 | ||||
Granted (in shares) | 2 | 2 | 358 | ||
Vested and Released (in shares) | (5) | (6) | (180) | ||
Forfeited or expired (in shares) | 0 | ||||
Outstanding at end of period (in shares) | 1,544 | 1,544 | 1,366 | ||
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) | $ 142.61 | ||||
Granted (in dollars per share) | 156.73 | ||||
Vested and Released (in dollars per share) | 154.11 | ||||
Forfeited or expired (in dollars per share) | 0 | ||||
Outstanding at end of period (in dollars per share) | $ 144.55 | $ 144.55 | $ 142.61 | ||
Total unrecognized compensation costs | $ 118,100,000 | $ 118,100,000 | |||
Non-vested restricted stock weighted average recognition period | 1 year 3 months 11 days | ||||
Restricted Stock | Non-Employee Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted (in shares) | 2 | 2 | |||
Vested and Released (in shares) | (5) | (6) | |||
Restricted Stock Units (RSUs) | |||||
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) | 435 | ||||
Granted (in shares) | 48 | 47 | 316 | ||
Vested and Released (in shares) | (29) | (28) | (189) | ||
Forfeited or expired (in shares) | (15) | ||||
Outstanding at end of period (in shares) | 547 | 547 | 435 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||
Total unrecognized compensation costs | $ 64,100,000 | $ 64,100,000 | |||
Non-vested restricted stock weighted average recognition period | 1 year 11 months 2 days | ||||
Restricted Stock Units (RSUs) | Non-Senior Officers and Other Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted (in shares) | 48 | 47 | |||
Vested and Released (in shares) | (29) | (28) |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Awards Vested (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 9,930 | 9,521 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested (in shares) | 5,000 | 6,000 | 180,000 | |
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 0 | 0 | ||
Aggregate amount of shares retained by company and not issued | $ 0 | $ 0 | ||
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 5,000 | 6,000 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested (in shares) | 29,000 | 28,000 | 189,000 | |
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 10,000 | 10,000 | ||
Aggregate amount of shares retained by company and not issued | $ 2.1 | $ 1.7 | ||
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 19,000 | 19,000 | ||
Non-Employee Directors | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested (in shares) | 5,000 | 6,000 | ||
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 0 | 0 | ||
Aggregate amount of shares retained by company and not issued | $ 0 | $ 0 | ||
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 5,000 | 6,000 | ||
Non-Senior Officers and Other Employees | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested (in shares) | 29,000 | 28,000 | ||
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 10,000 | 10,000 | ||
Aggregate amount of shares retained by company and not issued | $ 2.1 | $ 1.7 | ||
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 19,000 | 19,000 |