Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Jun. 30, 2013 | Feb. 03, 2014 | Feb. 03, 2014 | |
Class A | Class B Convertible | |||
Document Information [Line Items] | ' | ' | ' | ' |
Document Type | '10-K | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
Trading Symbol | 'MSTR | ' | ' | ' |
Entity Registrant Name | 'MICROSTRATEGY INC | ' | ' | ' |
Entity Central Index Key | '0001050446 | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 9,073,710 | 2,227,327 |
Entity public float | ' | $787,300,000 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $220,171 | $223,043 |
Restricted cash | 583 | 50 |
Short-term investments | 137,198 | 36 |
Accounts receivable, net | 86,181 | 89,038 |
Prepaid expenses and other current assets | 14,260 | 12,689 |
Deferred tax assets, net | 21,555 | 26,616 |
Assets held-for-sale | 0 | 10,571 |
Total current assets | 479,948 | 362,043 |
Property and equipment, net | 85,445 | 96,751 |
Capitalized software development costs, net | 10,295 | 10,360 |
Deposits and other assets | 6,622 | 5,120 |
Deferred tax assets, net | 3,204 | 3,664 |
Total assets | 585,514 | 477,938 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 39,946 | 40,905 |
Accrued compensation and employee benefits | 79,495 | 71,789 |
Deferred revenue and advance payments | 113,656 | 101,249 |
Deferred tax liabilities | 422 | 523 |
Liabilities held-for-sale | 0 | 4,689 |
Total current liabilities | 233,519 | 219,155 |
Deferred revenue and advance payments | 8,970 | 8,823 |
Other long-term liabilities | 25,511 | 43,418 |
Deferred tax liabilities | 7,188 | 6,231 |
Total liabilities | 275,188 | 277,627 |
Commitments and Contingencies | ' | ' |
Stockholders' Equity | ' | ' |
Preferred stock undesignated, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Additional paid-in capital | 494,086 | 468,087 |
Treasury stock, at cost; 6,405 shares | -475,184 | -475,184 |
Accumulated other comprehensive loss | -831 | -1,515 |
Retained earnings | 292,238 | 208,906 |
Total stockholders' equity | 310,326 | 200,311 |
Total liabilities and stockholders' equity | 585,514 | 477,938 |
Class A | ' | ' |
Stockholders' Equity | ' | ' |
Common stock | 15 | 15 |
Class B Convertible | ' | ' |
Stockholders' Equity | ' | ' |
Common stock | $2 | $2 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Treasury stock, shares | 6,405,000 | 6,405,000 |
Class A | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 330,000,000 | 330,000,000 |
Common stock, shares issued | 15,478,000 | 15,462,000 |
Common stock, shares outstanding | 9,073,000 | 9,057,000 |
Class B Convertible | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 165,000,000 | 165,000,000 |
Common stock, shares issued | 2,227,000 | 2,227,000 |
Common stock, shares outstanding | 2,227,000 | 2,227,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenues: | ' | ' | ' | |||
Product licenses and subscription services | $160,125 | $150,462 | $154,650 | |||
Product support | 277,509 | 262,048 | 243,547 | |||
Other services | 138,254 | 153,214 | 138,971 | |||
Total revenues | 575,888 | 565,724 | 537,168 | |||
Cost of revenues: | ' | ' | ' | |||
Product licenses and subscription services | 22,242 | 12,440 | 9,583 | |||
Product support | 16,617 | 15,532 | 13,417 | |||
Other services | 99,710 | 113,104 | 107,698 | |||
Total cost of revenues | 138,569 | 141,076 | 130,698 | |||
Gross profit | 437,319 | 424,648 | 406,470 | |||
Operating expenses: | ' | ' | ' | |||
Sales and marketing | 215,089 | 209,975 | 231,504 | |||
Research and development | 98,056 | 88,190 | 67,863 | |||
General and administrative | 104,734 | 93,384 | 86,237 | |||
Total operating expenses | 417,879 | 391,549 | 385,604 | |||
Income from continuing operations | 19,440 | 33,099 | 20,866 | |||
Interest income, net | 497 | 143 | 199 | |||
Gain on sale of investment | 0 | 0 | 3,371 | |||
Other (expense) income, net | -3,186 | -1,035 | 764 | |||
Income from continuing operations before income taxes | 16,751 | 32,207 | 25,200 | |||
(Benefit from) provision for income taxes | -9,799 | 9,734 | 3,393 | |||
Income from continuing operations, net of tax | 26,550 | 22,473 | 21,807 | |||
Discontinued operations: | ' | ' | ' | |||
Gain from sale of discontinued operations, net of tax provision | 57,377 | 0 | 0 | |||
Loss from discontinued operations, net of tax benefit | -595 | -1,927 | -3,867 | |||
Discontinued operations, net of tax | 56,782 | -1,927 | -3,867 | |||
Net income | $83,332 | $20,546 | $17,940 | |||
Basic earnings (loss) per share | ' | ' | ' | |||
From continuing operations | $2.35 | [1],[2] | $2.05 | [1],[2] | $2.03 | [2] |
From discontinued operations | $5.02 | [1],[2] | ($0.18) | [1],[2] | ($0.36) | [2] |
Basic earnings per share | $7.37 | [1],[2] | $1.87 | [1],[2] | $1.67 | [2] |
Weighted average shares outstanding used in computing basic earnings (loss) per share | 11,300 | 10,995 | 10,719 | |||
Diluted earnings (loss) per share | ' | ' | ' | |||
From continuing operations | $2.35 | [2] | $2.01 | [2] | $1.97 | [2] |
From discontinued operations | $5.02 | [2] | ($0.17) | [2] | ($0.35) | [2] |
Diluted earnings per share | $7.37 | [2] | $1.84 | [2] | $1.62 | [2] |
Weighted average shares outstanding used in computing diluted earnings (loss) per share | 11,301 | 11,174 | 11,066 | |||
[1] | The sum of the basic and diluted earnings (loss) per share for the four quarters may differ from annual earnings (loss) per share as the weighted-average shares outstanding are computed independently for each of the quarters presented. | |||||
[2] | Basic and fully diluted earnings (loss) per share for class A and class B common stock are the same. |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gain from sale of discontinued operations, tax provision | $37,548 | $0 | $0 |
Loss from discontinued operations, tax benefit | $391 | $1,049 | $2,033 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $83,332 | $20,546 | $17,940 |
Other comprehensive income (loss), net of applicable taxes: | ' | ' | ' |
Foreign currency translation adjustment | 684 | 535 | -581 |
Unrealized gain (loss) on short-term investments | 0 | 2 | -16 |
Total other comprehensive income (loss) | 684 | 537 | -597 |
Comprehensive income | $84,016 | $21,083 | $17,343 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
In Thousands | Class A | Class B | |||||
Beginning Balance at Dec. 31, 2010 | $149,172 | $14 | $3 | $455,374 | ($475,184) | ($1,455) | $170,420 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 14,351 | 2,694 | ' | -6,405 | ' | ' |
Net income | 17,940 | 0 | 0 | 0 | 0 | 0 | 17,940 |
Other comprehensive income (loss) | -597 | 0 | 0 | 0 | 0 | -597 | 0 |
Conversion of class B to class A common stock | 0 | 1 | -1 | 0 | 0 | 0 | 0 |
Conversion of class B to class A common stock (in shares) | ' | 316 | -316 | ' | 0 | ' | ' |
Issuance of class A common stock under stock option plans | 2,463 | 0 | 0 | 2,463 | 0 | 0 | 0 |
Issuance of class A common stock under stock option plans (in shares) | ' | 143 | 0 | ' | 0 | ' | ' |
Ending Balance at Dec. 31, 2011 | 168,978 | 15 | 2 | 457,837 | -475,184 | -2,052 | 188,360 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 14,810 | 2,378 | ' | -6,405 | ' | ' |
Net income | 20,546 | 0 | 0 | 0 | 0 | 0 | 20,546 |
Other comprehensive income (loss) | 537 | 0 | 0 | 0 | 0 | 537 | 0 |
Conversion of class B to class A common stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Conversion of class B to class A common stock (in shares) | ' | 151 | -151 | ' | 0 | ' | ' |
Issuance of class A common stock under stock option plans | 10,250 | 0 | 0 | 10,250 | 0 | 0 | 0 |
Issuance of class A common stock under stock option plans (in shares) | ' | 501 | 0 | ' | 0 | ' | ' |
Ending Balance at Dec. 31, 2012 | 200,311 | 15 | 2 | 468,087 | -475,184 | -1,515 | 208,906 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 15,462 | 2,227 | ' | -6,405 | ' | ' |
Net income | 83,332 | 0 | 0 | 0 | 0 | 0 | 83,332 |
Other comprehensive income (loss) | 684 | 0 | 0 | 0 | 0 | 684 | 0 |
Issuance of class A common stock under stock option plans | 341 | 0 | 0 | 341 | 0 | 0 | 0 |
Issuance of class A common stock under stock option plans (in shares) | ' | 16 | 0 | ' | 0 | ' | ' |
Tax effect of stock option exercises | 23,580 | 0 | 0 | 23,580 | 0 | 0 | 0 |
Share-based compensation expense | 2,078 | 0 | 0 | 2,078 | 0 | 0 | 0 |
Ending Balance at Dec. 31, 2013 | $310,326 | $15 | $2 | $494,086 | ($475,184) | ($831) | $292,238 |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 15,478 | 2,227 | ' | -6,405 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net income | $83,332 | $20,546 | $17,940 |
Plus: (Income) loss from discontinued operations, net of tax | -56,782 | 1,927 | 3,867 |
Income from continuing operations, net of tax | 26,550 | 22,473 | 21,807 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 26,399 | 22,454 | 17,271 |
Bad debt expense | 2,281 | 2,361 | 1,449 |
Deferred taxes | -3,319 | 1,967 | -3,371 |
Release of liabilities for unrecognized tax benefits | -14,643 | -472 | -552 |
Share-based compensation expense | 2,078 | 0 | 0 |
Excess tax benefits from share-based compensation arrangements | -23,580 | 0 | 0 |
Gain on sale of investment | 0 | 0 | -3,371 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | 676 | 526 | -14,326 |
Prepaid expenses and other current assets | -565 | 305 | 7,232 |
Deposits and other assets | 794 | 175 | 95 |
Accounts payable and accrued expenses | -4,786 | 3,763 | 5,022 |
Accrued compensation and employee benefits | 8,176 | 4,578 | 9,716 |
Deferred revenue and advance payments | 13,465 | -3,967 | 18,310 |
Other long-term liabilities | -2,928 | -2,000 | 7,746 |
Net cash provided by operating activities from continuing operations | 30,598 | 52,163 | 67,028 |
Net cash used in operating activities from discontinued operations | -664 | -2,279 | -6,214 |
Net cash provided by operating activities | 29,934 | 49,884 | 60,814 |
Investing activities: | ' | ' | ' |
Proceeds from redemption of short-term investments | 87,000 | 0 | 0 |
Proceeds from sale of investment | 0 | 0 | 3,371 |
Purchases of property and equipment | -11,043 | -29,621 | -36,691 |
Purchases of short-term investments | -224,103 | 0 | 0 |
Capitalized software development costs | -5,437 | -8,148 | -5,907 |
Insurance proceeds | 0 | 3,206 | 7,065 |
(Increase) decrease in restricted cash | -483 | 225 | -51 |
Net cash used in investing activities from continuing operations | -154,066 | -34,338 | -32,213 |
Net cash provided by (used in) investing activities from discontinued operations | 99,136 | -1,495 | -3,969 |
Net cash used in investing activities | -54,930 | -35,833 | -36,182 |
Financing activities: | ' | ' | ' |
Proceeds from sale of class A common stock under exercise of employee stock options | 341 | 10,250 | 2,463 |
Excess tax benefits from share-based compensation arrangements | 23,580 | 0 | 0 |
Payments on capital lease obligations and other financing arrangements | -2,284 | -491 | 0 |
Net cash provided by financing activities from continuing operations | 21,637 | 9,759 | 2,463 |
Net cash provided by financing activities from discontinued operations | 0 | 0 | 0 |
Net cash provided by financing activities | 21,637 | 9,759 | 2,463 |
Effect of foreign exchange rate changes on cash and cash equivalents | -863 | 949 | -1,558 |
Net (decrease) increase in cash and cash equivalents | -4,222 | 24,759 | 25,537 |
Cash and cash equivalents (including held-for-sale of $1,350, $5,300, and $1,512, respectively), beginning of year | 224,393 | 199,634 | 174,097 |
Cash and cash equivalents (including held-for-sale of $0, $1,350, and $5,300, respectively), end of year | 220,171 | 224,393 | 199,634 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid during the year for interest | 78 | 31 | 32 |
Cash paid during the year for income taxes, net of tax refunds | 12,941 | 6,463 | 1,940 |
Supplemental disclosure of noncash investing and financing activities: | ' | ' | ' |
Assets acquired under capital lease obligations and other financing arrangements | $3,793 | $2,505 | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Held-for-sale beginning of period | $0 | $1,350 | $5,300 | $1,512 |
Held-for-sale end of period | $0 | $1,350 | $5,300 | $1,512 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2013 | |
Organization | ' |
(1) Organization | |
MicroStrategy is a leading worldwide provider of enterprise software platforms. The Company’s mission is to provide the most flexible, powerful, scalable, and user-friendly platforms for analytics, mobile, identity, and loyalty, offered either on premises or in the cloud. | |
The MicroStrategy Analytics Platform enables organizations to analyze vast amounts of data and distribute actionable business insight throughout an enterprise. Our analytics platform delivers reports and dashboards, and enables users to conduct ad hoc analysis and share insights anywhere, anytime, via mobile devices or the Web. The MicroStrategy Analytics Platform is comprised of MicroStrategy Analytics Enterprise™, MicroStrategy Analytics Express™, and MicroStrategy Analytics Desktop™. MicroStrategy Analytics Enterprise lies at the core of the MicroStrategy Analytics Platform and combines the agility and productivity of self-service visual data discovery with the security, scalability, and governance features of enterprise-grade business intelligence. MicroStrategy Analytics Desktop is a standalone desktop tool, available free of charge and designed to enable business users to analyze and understand their data. With MicroStrategy Analytics Desktop, business users can create stunning data visualizations and dashboards that provide new insight and new understanding in just minutes. MicroStrategy Analytics Express is a cloud-based service that is designed to be the fastest way for companies, departments, and small businesses to build and deploy MicroStrategy-caliber analytics with little or no assistance from IT professionals. MicroStrategy Analytics Express guides business people through a streamlined flow – from data-to-discovery-to-dashboard-to-distribution. | |
MicroStrategy Mobile is designed to allow organizations to rapidly build information-rich applications that combine multimedia, transactions, analytics, and custom workflows. The powerful code-free platform approach is designed to reduce the costs of development and enable organizations to get powerful mobile business apps quickly and cost-effectively. MicroStrategy Mobile is an easy, fast, and cost-effective way to mobilize an organization’s information systems, including its data warehouses, business intelligence, ERP, CRM, and Web applications that are currently accessible only on the desktop. Using MicroStrategy Mobile, customers can transform their entire workforce into a connected and more productive mobile workforce with mobile apps that are significantly more robust than their Web-only counterparts. With mobile access to critical corporate data and systems that drive the business, employees can have a virtual office in their hands at all times. | |
MicroStrategy Cloud brings together enterprise analytics, analytical databases, and data integration capabilities in a high performance integrated environment. MicroStrategy Cloud offers on-demand access to the full breadth of the MicroStrategy Analytics Platform and MicroStrategy Mobile capabilities and is optimized for a variety of enterprise applications. Compared to traditional on-premises approaches, MicroStrategy Cloud is quicker to deploy, is more flexible, delivers consistent high-level performance, and offers significant financial advantages. We offer MicroStrategy Cloud as a managed service to organizations that want the power of enterprise analytics and the ability to quickly build and deliver enterprise mobile apps that harness the potential of Big Data analytics. | |
The MicroStrategy Loyalty Platform, branded as MicroStrategy Alert, is a next-generation, mobile customer loyalty and engagement solution. It is designed to help retailers harness the power of mobile technology by providing a mobile engagement channel to their customers for targeted marketing, commerce, and loyalty. MicroStrategy Alert is offered as a subscription-based service. It includes a consumer-facing branded mobile app; a campaign management system to create and launch targeted campaigns and publish content, as well as design target segments; and a library of content connectors to synchronize content from customers’ existing Websites and social pages with the MicroStrategy Alert-powered mobile app. | |
The MicroStrategy Identity Platform, branded as MicroStrategy Usher, is a mobile identity solution that can deliver biometric-enhanced security to applications and business processes across an enterprise. MicroStrategy Usher can replace ID cards, key cards, employee badges, and passwords with a single mobile identity that is biometrically linked to its owner, cryptographically linked to its owner’s phone, and dynamically linked to the enterprise’s existing identity repositories. MicroStrategy Usher’s architecture leverages three-factor authentication, out-of-band channels, time-limited codes, and bidirectional public key infrastructure encryption to offer enterprises increased protection against fraud and cybercrime. MicroStrategy Usher is designed to allow users to log in to applications, unlock doors, validate one another’s identity, and authorize transactions more securely, using their MicroStrategy Usher mobile identities. Furthermore, MicroStrategy Usher uses the MicroStrategy Analytics Platform to support behavior monitoring and the detection of abnormal activity for even greater security. MicroStrategy Usher is offered as a subscription-based service. | |
The MicroStrategy Analytics Platform, MicroStrategy Mobile, and MicroStrategy Cloud together with related product and support services, continue to generate the vast majority of our revenue. During 2013 and 2012, we did not generate significant revenues from the MicroStrategy Loyalty Platform or the MicroStrategy Identity Platform. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Summary of Significant Accounting Policies | ' | ||
(2) Summary of Significant Accounting Policies | |||
(a) Basis of Presentation | |||
The accompanying Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||
The Company must classify a business line as discontinued operations once the Company has committed to a plan to sell the business. On February 25, 2013, the Company committed to a plan to sell its wholly-owned subsidiary, Angel.com Incorporated (“Angel.com”), which focused outside of the Company’s analytics software and services offerings. On March 15, 2013, the Company completed the sale of this business. Historical financial information presented in the Consolidated Financial Statements and Notes to Consolidated Financial Statements have been reclassified to conform to current year presentation. Refer to Note 16, Discontinued Operations, to the Consolidated Financial Statements for further information. | |||
Certain other amounts in the prior years’ Consolidated Financial Statements and Notes to Consolidated Financial Statements have also been reclassified to conform to current year presentation. Revenues and cost of revenues have been reclassified in the Consolidated Statements of Operations and deferred revenues have been reclassified in Note 8, Deferred Revenue and Advance Payments, to reflect the new presentation of the Company’s three different types of revenue. In addition, bad debt expense and changes in accounts receivable have been reclassified within operating activities in the Consolidated Statements of Cash Flows. | |||
The Company is not aware of any subsequent event which would require recognition. | |||
(b) Use of Estimates | |||
The preparation of the Consolidated Financial Statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. On an on-going basis, the Company evaluates its estimates, including, but not limited to, those related to revenue recognition, allowance for doubtful accounts, investments, derivative financial instruments, software development costs, fixed assets, intangible assets, variable compensation, share-based compensation, income taxes, including the carrying value of deferred tax assets, and litigation and contingencies, including liabilities that the Company deems not probable of assertion. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets, liabilities, and equity that are not readily apparent from other sources. Actual results and outcomes could differ from these estimates and assumptions. | |||
(c) Fair Value Measurements | |||
The Company measures certain assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that is expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a three-level hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques. The three levels of the fair value hierarchy are described below: | |||
Level 1: | Quoted (unadjusted) prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||
Level 2: | Inputs other than quoted prices that are either directly or indirectly observable, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||
Level 3: | Inputs that are generally unobservable, supported by little or no market activity, and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. | ||
The categorization of an asset or liability within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation techniques used by the Company when measuring fair value maximize the use of observable inputs and minimize the use of unobservable inputs. | |||
The Company also estimates the fair value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and accrued compensation and employee benefits. The Company considers the carrying value of these instruments in the financial statements to approximate fair value due to their short maturities. | |||
(d) Cash and Cash Equivalents and Restricted Cash | |||
Cash equivalents include bank deposits, U.S. Treasury bills, and equivalent funds. The Company generally considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash consists of cash balances restricted in use by contractual obligations with third parties. | |||
(e) Short-term Investments | |||
The Company periodically invests a portion of its excess cash in short-term investment instruments. All highly liquid investments with stated maturity dates between three months and one year from the purchase date are classified as short-term investments. The Company determines the appropriate classification of its short-term investments at the time of purchase. | |||
The majority of the Company’s short-term investments are in U.S. Treasury securities and the Company has the ability and intent to hold these investments to maturity. Therefore, these short-term investments are classified and accounted for as held-to-maturity and are reported at amortized cost. Each reporting period, the Company determines whether a decline in fair value below the amortized cost for each individual security is other-than-temporary and if it would be required to sell the security before recovery of its amortized cost basis. If an other-than-temporary impairment has occurred, the amount representing the credit loss is recorded in “Other (expense) income, net,” and the amount related to all other factors is recognized in “Accumulated other comprehensive loss.” Upon recognition of an other-than-temporary impairment, the previous amortized cost basis less the other-than-temporary impairment recognized in earnings becomes the new amortized cost basis of the investment. | |||
(f) Derivative Financial Instruments | |||
The Company is exposed to certain risks related to its ongoing business operations, including the effect of changes in foreign exchange rates on the Company’s monetary assets and liabilities denominated in foreign currency. The Company uses foreign currency forward contracts as part of its strategy to manage these risks, but does not hold or issue derivative instruments for trading purposes or speculation. We execute these instruments with financial institutions that hold an investment grade credit rating. These foreign currency forward contracts do not meet the requirements for hedge accounting and are recorded on the balance sheet as either an asset or liability measured at their fair value as of the reporting date. Changes in the fair value of derivative instruments, as measured using the three-level hierarchy described above, are recognized in “Other (expense) income, net” in the Company’s Consolidated Statements of Operations. | |||
(g) Property and Equipment | |||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: three years for computer equipment and purchased software, five years for office equipment and automobiles, and ten years for office furniture and owned corporate aircraft, which has an estimated salvage value of 70%. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the term of the lease, whichever is shorter. The Company periodically evaluates the appropriateness of the estimated useful lives and salvage value of all property and equipment. Any change in the estimated useful life or salvage value is treated as a change in estimate and accounted for prospectively in the period of change. | |||
Expenditures for maintenance and repairs are charged to expense as incurred, except for certain costs related to the aircraft. The costs of normal, recurring, or periodic repairs and maintenance activities related to the aircraft are expensed as incurred. The cost of planned major maintenance activities (“PMMA”) may be treated differently because those activities may involve the acquisition of additional aircraft components or the replacement of existing aircraft components. PMMA are performed periodically based on passage of time and the use of the aircraft. The classification of a maintenance activity as part of PMMA requires judgment and can affect the amount of expense recognized in any particular period. The cost of each PMMA is expected to be capitalized and amortized over the period until the next scheduled PMMA. The costs of the repairs associated with the Company’s owned aircraft, which was returned to service in the second quarter of 2012, did not constitute PMMA. There have been no PMMA to date. | |||
When assets are retired or sold, the capitalized cost and related accumulated depreciation are removed from the property and equipment accounts and any resulting gain or loss is recognized in the results of operations. | |||
Eligible internal-use software development costs are capitalized subsequent to the completion of the preliminary project stage. Such costs include external direct material and service costs, employee payroll, and payroll-related costs. After all substantial testing and deployment is completed and the software is ready for its intended use, capitalization ceases and internal-use software development costs are amortized using the straight-line method over the estimated useful life of the software, generally three years. | |||
The Company reviews long-lived assets, including intangible assets, for impairment annually or whenever events or changes in business circumstances indicate that the carrying value of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded value of the asset. If an asset is impaired, the asset is written down by the amount by which the carrying value of the asset exceeds the related fair value of the asset. | |||
(h) Software Development Costs | |||
Software development costs are expensed as incurred until technological feasibility has been established, at which time such costs are capitalized until the product is available for general release to customers. Capitalized software development costs include direct labor costs and fringe benefit costs attributed to programmers, software engineers, and quality control and field certifiers working on products after they reach technological feasibility, but before they are generally available to customers for sale. Technological feasibility is considered to be achieved when a product design and working model of the software product have been completed. Capitalized software development costs are typically amortized over the estimated product life of three years, on a straight-line basis. | |||
Capitalized software development costs, net of accumulated amortization, were $10.3 million and $10.4 million as of December 31, 2013 and 2012, respectively. Amortization expense related to software development costs was $5.5 million, $4.8 million, and $7.9 million for the years ended December 31, 2013, 2012, and 2011, respectively, and is included in cost of product licenses and subscription services revenues. During the years ended December 31, 2013, 2012, and 2011, the Company capitalized software development costs of $5.4 million, $8.1 million, and $5.9 million, respectively. The Company analyzes the net realizable value of capitalized software development costs on at least an annual basis and has determined that there is no indication of impairment of the capitalized software development costs as forecasted future sales are adequate to support amortization costs. | |||
(i) Loss Contingencies and Legal Costs | |||
The Company accrues loss contingencies that are believed to be probable and can be reasonably estimated. As events evolve during the administration and litigation process and additional information becomes known, the Company reassesses its estimates related to loss contingencies. Legal costs are expensed in the period in which the costs are incurred. | |||
(j) Deferred Revenue and Advance Payments | |||
Deferred revenue and advance payments related to product support, subscription services, and other services result from payments received prior to the performance of services for technical support, subscription, consulting, and education. Deferred revenue and advance payments related to product licenses result primarily from multiple-element arrangements that include future deliverables. Deferred revenue comprises deferred product licenses and subscription services, deferred product support, or other services revenue based on the objective fair value of the multiple elements of the arrangement, except for software licenses for which the Company does not have an objective measure of fair value. The Company offsets its accounts receivable and deferred revenue for any billed and unpaid items included in deferred revenue and advance payments. | |||
As of December 31, 2013, the Company has entered into certain additional agreements that include future minimum commitments by the Company’s customers to purchase products, subscription services, product support, or other services through 2018 totaling approximately $119.7 million. As of December 31, 2012, the future minimum commitments by the Company’s customers to purchase products, subscription services, product support, or other services through 2017 totaled approximately $110.4 million. These future commitments are not included in deferred revenue balances. Revenue relating to such agreements will be recognized during the period in which all revenue recognition criteria are met. The timing and ultimate recognition of any revenue from such customer purchase commitments depend on the customers’ meeting their future purchase commitments and the Company’s ability to meet its associated performance obligations related to those purchase commitments. | |||
(k) Revenue Recognition | |||
The Company recognizes revenue from sales of software licenses to end users upon: | |||
1) | persuasive evidence of an arrangement, as provided by agreements, contracts, purchase orders, or other arrangements, generally executed by both parties; | ||
2) | existence of a fixed or determinable fee; | ||
3) | delivery of the software; and | ||
4) | determination that collection is reasonably assured. | ||
When the fees for software upgrades and enhancements, technical support, consulting, and education are bundled with the license fee, they are unbundled for revenue recognition purposes, using vendor specific objective evidence (“VSOE”) of fair value of the elements. | |||
Product support or post-contract support (“PCS”) revenue is derived from providing technical software support and software updates and upgrades to customers. PCS revenue is recognized ratably over the term of the contract, which in most cases is one year. The Company’s VSOE for PCS, which includes updates, upgrades, and enhancements, is determined based upon the optional stated renewal fee for PCS in the contract, which is the price the customer is required to pay when PCS is renewed. Additionally, the optional stated renewal fee used to establish VSOE for PCS in a software transaction must be above the Company’s minimum substantive VSOE rate for PCS. If a stated renewal rate is considered non-substantive, VSOE of PCS has not been established and the Company recognizes all revenue under the arrangement ratably over the PCS period. A minimum substantive VSOE rate is determined based upon an analysis of historical sales of PCS. For a renewal rate to be non-substantive, the Company believes it must be significantly lower than its minimum VSOE rate. We consider a 10% variance below our minimum VSOE rate to be significant. It is rare for the Company to have an arrangement that includes a renewal rate that is below the minimum VSOE rate. | |||
Revenue from consulting, education, and subscription services is recognized as the services are performed. The Company’s VSOE for services other than PCS is determined based upon an analysis of its historical sales of each element when sold separately from software. | |||
For new offerings of services other than PCS or service offerings that have not had a sufficient history of sales activity, the Company initially establishes VSOE based on the list price as determined by management with the relevant authority. Each service offering has a single list price in each country where sold. | |||
If VSOE exists for all undelivered elements and there is no such evidence of fair value established for delivered elements, the arrangement fee is first allocated to the elements where evidence of fair value has been established and the residual amount is allocated to the delivered elements. If evidence of fair value for any undelivered element of an arrangement does not exist, all revenue from the arrangement is deferred until such time that evidence of fair value exists for undelivered elements or until all elements of the arrangement are delivered, subject to certain limited exceptions. | |||
If an arrangement includes acceptance criteria, revenue is not recognized until the Company can objectively demonstrate that the software or service can meet the acceptance criteria, or the acceptance period lapses, whichever occurs earlier. If a software license arrangement obligates the Company to deliver specified future products or upgrades, revenue is recognized when the specified future product or upgrades are delivered, or when the obligation to deliver specified future products expires, whichever occurs earlier. If a software license arrangement obligates the Company to deliver unspecified future products, then revenue is recognized on a subscription basis, ratably over the term of the contract. | |||
License revenue derived from sales to resellers or original equipment manufacturers (“OEMs”) who purchase the Company’s products for resale is recognized upon sufficient evidence that the products have been sold to the end user, provided all other revenue recognition criteria have been met. The Company’s standard software license and reseller agreements do not include any return rights other than the right to return non-conforming products for repair or replacement under standard product warranties. During the last three fiscal years, the Company has not experienced any product returns related to warranty claims. | |||
The Company generally offers either commercial discounts or referral fees to its channel partners, depending on the nature of services performed. Revenue recognized from transactions with channel partners involved in resale or distribution activities is recorded net of any commercial discounts provided to them. Referral fees paid to channel partners not involved in resale or distribution activities are expensed as cost of revenues and, during the last three fiscal years, were not significant. | |||
The Company’s standard software license agreements do not include any price protection or similar rights. The Company offers price protection to certain government agencies as required by applicable laws and regulations. For example, transactions under the General Services Administration Federal Supply Schedule contract must comply with the Price Reductions clause. In addition, certain government agencies have the right to cancel contracts for “convenience.” During the last three fiscal years, amounts related to price protection or similar rights clauses and contracts cancelled for convenience were not significant. | |||
Amounts collected prior to satisfying the above revenue recognition criteria are included in net deferred revenue and advance payments in the accompanying Consolidated Balance Sheets. | |||
Software revenue recognition requires judgment, including determinations about whether collectibility is reasonably assured, the fee is fixed and determinable, whether a software arrangement includes multiple elements, and if so, whether VSOE exists for those elements. Judgment is also required to assess whether future releases of certain software represent new products or upgrades and enhancements to existing products. | |||
The Company also generates subscription services revenues primarily from MicroStrategy Cloud, a cloud-based analytics PaaS. Subscription services revenues include subscription fees from customers for access to the full breadth of the MicroStrategy Analytics Platform and MicroStrategy Mobile capabilities, database services, and data integration services. Our standard arrangements with customers generally do not provide the customer with the right to take possession of the software supporting the cloud-based application service at any time. As such, these arrangements are considered service contracts and revenue is recognized ratably over the service period of the contract, following completion of the set-up service. Any related set-up service fees are recognized ratably over the longer of the contract period or the estimated average life of the customer relationship. | |||
Our MicroStrategy Cloud subscription services are generally offered as stand-alone arrangements or as part of arrangements that include professional services. If deliverables in a multiple-element arrangement have stand-alone value upon delivery, the Company accounts for each such deliverable separately. The Company has concluded that its subscription services and its professional services each have stand-alone value. When the Company enters into multiple-element arrangements that include subscription services and professional services, the total arrangement consideration is allocated to each of the deliverables based on the relative selling price hierarchy. The Company determines the relative selling price for each deliverable using VSOE of selling price, if available, or its best estimate of selling price (“BESP”), if VSOE is not available. The Company has determined that third-party evidence of selling price (“TPE”) is not a practical alternative due to differences in its services offerings as compared to other companies and the lack of availability of third-party pricing information. For professional services, the Company has established VSOE because a consistent number of standalone sales of this deliverable have been priced within a reasonably narrow range. For subscription services, the Company has not established VSOE because, among other factors, the offering is relatively new and our pricing model continues to evolve. Accordingly, the Company uses BESP to determine the relative selling price of MicroStrategy Cloud subscription services. | |||
The Company determines BESP by reviewing historical transactions and by considering its pricing models and objectives that take into account factors such as gross margin, the size and volume of the transactions, perceived pricing sensitivity, and growth strategies. The determination of BESP is made through consultation with, and approval by, the Company’s management team, taking into consideration the go-to-market strategy. As the Company’s pricing and go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to the determination of VSOE and BESP. | |||
Amounts, upon invoicing, are recorded in accounts receivable and either gross deferred revenue or revenue, depending on whether the applicable revenue recognition criteria have been met. | |||
During 2013, 2012, and 2011, the Company did not generate significant revenues from the MicroStrategy Loyalty Platform or the MicroStrategy Identity Platform. | |||
(l) Advertising Costs | |||
Advertising costs include production costs, which are expensed the first time the advertisement takes place, and media placement costs, which are expensed in the month the advertising appears. Total advertising costs were $1.9 million, $4.1 million, and $5.0 million for the years ended December 31, 2013, 2012, and 2011, respectively. As of December 31, 2013 and 2012, the Company had no prepaid advertising costs. | |||
(m) Share-based Compensation | |||
In September 2013, the Board of Directors approved, subject to stockholder approval, the Company’s 2013 Stock Incentive Plan authorizing the grant of an aggregate of 600,000 shares of class A common stock. Under the plan, the Company’s employees, officers, directors, and other eligible participants may be awarded various types of share-based compensation, including options to purchase shares of the Company’s class A common stock. The Company recognizes share-based compensation expense associated with such stock option awards on a straight-line basis over the award’s requisite service period. The share-based compensation expense is based on the fair value of such awards on the date of grant, as estimated using the Black-Scholes option pricing model. See Note 12, Share-based Compensation, to the Consolidated Financial Statements for further information regarding the Company’s 2013 Stock Incentive Plan, related share-based compensation expense, and assumptions used in the Black-Scholes option pricing model. | |||
(n) Income Taxes | |||
The Company is subject to federal, state, and local income taxes in the United States and many foreign countries. Deferred income taxes are provided based upon enacted tax laws and rates applicable to the periods in which the taxes become payable. For uncertain income tax positions, the Company uses a more-likely-than-not recognition threshold based on the technical merits of the income tax position taken. Income tax positions that meet the more-likely-than-not recognition threshold are measured in order to determine the tax benefit recognized in the financial statements. The Company recognizes accrued interest related to unrecognized tax benefits as part of income tax expense. Penalties, if incurred, are recognized as a component of income tax expense. | |||
The Company provides a valuation allowance to reduce deferred tax assets to their estimated realizable value, when appropriate. | |||
(o) Basic and Diluted Earnings Per Share | |||
Basic earnings per share is determined by dividing the net income attributable to common stockholders by the weighted average number of common shares and participating securities outstanding during the period. Participating securities are included in the basic earnings per share calculation when dilutive. Diluted earnings per share is determined by dividing the net income attributable to common stockholders by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares are included in the diluted earnings per share calculation when dilutive. Potential common shares consisting of common stock issuable upon exercise of outstanding employee stock options and warrants are computed using the treasury stock method. Potential common shares also consist of common stock issuable upon the conversion of preferred stock. | |||
The Company has two classes of common stock: class A common stock and class B common stock. Holders of class A common stock generally have the same rights, including rights to dividends, as holders of class B common stock, except that holders of class A common stock have one vote per share while holders of class B common stock have ten votes per share. Each share of class B common stock is convertible at any time, at the option of the holder, into one share of class A common stock. As such, basic and fully diluted earnings per share for class A and class B common stock are the same. The Company has never declared or paid any cash dividends on either class A or class B common stock. As of December 31, 2013 and 2012, there were no shares of preferred stock outstanding. | |||
(p) Foreign Currency Translation | |||
The functional currency of the Company’s international operations is the local currency. Accordingly, all assets and liabilities of international subsidiaries are translated using exchange rates in effect at the end of the period and revenue and expenses are translated using weighted average exchange rates for the period. The related translation adjustments are reported in accumulated other comprehensive income (loss) in stockholders’ equity. Transaction gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included in the results of operations. | |||
Transaction gains and losses arising from transactions denominated in foreign currencies resulted in net losses of $3.3 million and $2.0 million in 2013 and 2012, respectively, and a net gain of $0.4 million in 2011, and are included in “Other (expense) income, net” in the accompanying Consolidated Statements of Operations. | |||
As of December 31, 2013, 2012, and 2011, the cumulative foreign currency translation balances were $(0.8) million, $(1.5) million, and $(2.0) million, respectively. | |||
(q) Concentrations of Credit Risk | |||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, foreign currency forward contracts, and accounts receivable. The Company places its cash equivalents and enters into foreign currency forward contracts with high credit-quality financial institutions and invests its excess cash primarily in short-term investments. The Company has established guidelines relative to credit ratings and maturities that seek to maintain safety and liquidity. | |||
The Company sells products and services to various companies across several industries throughout the world in the ordinary course of business. The Company routinely assesses the financial strength of its customers and maintains allowances for anticipated losses. As of December 31, 2013 and 2012, no individual customer accounted for 10% or more of net accounts receivable and for the years ended December 31, 2013, 2012, and 2011, no individual customer accounted for 10% or more of revenue. |
Recent_Accounting_Standards
Recent Accounting Standards | 12 Months Ended |
Dec. 31, 2013 | |
Recent Accounting Standards | ' |
(3) Recent Accounting Standards | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220) (“ASU 2013-02”), which established the effective date for the requirement to present components of reclassifications out of accumulated other comprehensive income either in a single note or parenthetically on the face of the financial statements. ASU 2013-02 is effective for interim and annual periods beginning after December 15, 2012. The adoption of this guidance did not have a material effect on the Company’s consolidated financial position, results of operations, or cash flows. | |
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740) (“ASU 2013-11”), which requires the financial statement presentation of an unrecognized tax benefit in a particular jurisdiction, or a portion thereof, as a reduction to a deferred tax asset for a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward, unless the uncertain tax position is not available to reduce, or would not be used to reduce, the NOL or carryforward under the tax law in the same jurisdiction; otherwise, the unrecognized tax benefit should be presented as a gross liability and should not be combined with a deferred tax asset. ASU 2013-11 is effective for interim and annual periods beginning after December 15, 2013. The Company is currently evaluating the impact of this guidance on its consolidated financial position, results of operations, and cash flows. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||
(4) Fair Value Measurements | |||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, consisted of the following (in thousands), as of: | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||
Using Input Types | |||||||||||||||||||
Line Item | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Non-hedging derivative assets: | |||||||||||||||||||
Foreign currency forward contracts | Prepaid expenses and other current assets | $ | 0 | $ | 5 | $ | 0 | $ | 5 | ||||||||||
Non-hedging derivative liabilities: | |||||||||||||||||||
Foreign currency forward contracts | Accounts payable and accrued expenses | $ | 0 | $ | 46 | $ | 0 | $ | 46 | ||||||||||
The fair value of our foreign currency forward contracts is determined using Level 2 observable market inputs to extrapolate forward points to be added to or subtracted from the closing market spot rate on the reporting date, and then discounted to present value. All foreign currency forward contracts outstanding as of December 31, 2013 were for durations of three months or less and consisted of the following sale contracts (in thousands): | |||||||||||||||||||
Notional Value | Notional Value | Fair Value | |||||||||||||||||
Local Currency | U.S. Dollar | Gain (Loss) | |||||||||||||||||
U.S. Dollar | |||||||||||||||||||
Forward contracts to sell: | |||||||||||||||||||
Australian Dollar | AUD | 1,128 | $ | 1,000 | $ | (2 | ) | ||||||||||||
Brazilian Real | BRL | 3,386 | 1,400 | (4 | ) | ||||||||||||||
British Pound | GBP | 910 | 1,500 | (6 | ) | ||||||||||||||
Canadian Dollar | CAD | 747 | 700 | (1 | ) | ||||||||||||||
Chinese Renminbi | CNY | 10,463 | 1,700 | (12 | ) | ||||||||||||||
Euro | EUR | 3,480 | 4,800 | 1 | |||||||||||||||
Indian Rupee | INR | 19,093 | 300 | (3 | ) | ||||||||||||||
Japanese Yen | JPY | 136,729 | 1,300 | 1 | |||||||||||||||
Korean Won | KRW | 746,802 | 700 | (4 | ) | ||||||||||||||
Mexican Peso | MXN | 3,965 | 300 | (1 | ) | ||||||||||||||
Polish Zloty | PLN | 4,852 | 1,600 | (1 | ) | ||||||||||||||
Russian Rouble | RUB | 6,715 | 200 | (2 | ) | ||||||||||||||
Singapore Dollar | SGD | 509 | 400 | (3 | ) | ||||||||||||||
South African Rand | ZAR | 6,374 | 600 | 2 | |||||||||||||||
Swedish Krona | SEK | 1,650 | 250 | (6 | ) | ||||||||||||||
Swiss Franc | CHF | 266 | 300 | 0 | |||||||||||||||
Turkish New Lira | TRY | 217 | 100 | 1 | |||||||||||||||
United Arab Emirates Dirham | AED | 739 | 200 | (1 | ) | ||||||||||||||
$ | 17,350 | $ | (41 | ) | |||||||||||||||
As of December 31, 2012, the Company held no foreign currency forward contracts. | |||||||||||||||||||
Changes in the fair value of our foreign currency forward contracts during 2013, 2012, and 2011 were as follows (in thousands): | |||||||||||||||||||
Gains (Losses) on Derivative Instruments Recognized in Income | |||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||
Location | 2013 | 2012 | 2011 | ||||||||||||||||
Non-hedging derivative instruments: | |||||||||||||||||||
Foreign currency forward contracts outstanding | Other (expense) income, net | $ | (41 | ) | $ | 0 | $ | 0 | |||||||||||
Foreign currency forward contracts settled | Other (expense) income, net | $ | (629 | ) | $ | 0 | $ | 0 | |||||||||||
There were no transfers among the levels within the fair value hierarchy during the years ended December 31, 2013, 2012, and 2011. As of December 31, 2013 and December 31, 2012, the Company had no assets or liabilities that were required to be measured at fair value on a non-recurring basis. |
Shortterm_Investments
Short-term Investments | 12 Months Ended |
Dec. 31, 2013 | |
Short-term Investments | ' |
(5) Short-term Investments | |
The Company periodically invests a portion of its excess cash in short-term investment instruments. Substantially all of the Company’s short-term investments are in U.S. Treasury securities, and the Company has the ability and intent to hold these investments to maturity. The stated maturity dates of these investments are between three months and one year from the purchase date. These held-to-maturity investments are recorded at amortized cost and included within “Short-term investments” on the accompanying Consolidated Balance Sheets. The fair value of held-to-maturity investments in U.S. Treasury securities is determined based on quoted market prices in active markets for identical securities (Level 1 inputs). | |
The amortized cost, carrying value, and fair value of held-to-maturity investments at December 31, 2013 were $137.2 million, $137.2 million, and $137.2 million, respectively. The gross unrecognized holding gains and losses were not material for 2013, 2012, or 2011. No other-than-temporary impairments related to these investments have been recognized in accumulated other comprehensive loss as of December 31, 2013. As of December 31, 2012, the Company had no held-to-maturity investments. As of December 31, 2013 and December 31, 2012, the Company’s available-for-sale investments were not material. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts Receivable | ' | ||||||||
(6) Accounts Receivable | |||||||||
Accounts receivable (in thousands) consisted of the following, as of: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Billed and billable | $ | 190,446 | $ | 176,511 | |||||
Less: unpaid deferred revenue | (100,276 | ) | (83,107 | ) | |||||
Accounts receivable, gross | 90,170 | 93,404 | |||||||
Less: allowance for doubtful accounts | (3,989 | ) | (4,366 | ) | |||||
Account receivable, net | $ | 86,181 | $ | 89,038 | |||||
The Company offsets its accounts receivable and deferred revenue for any unpaid items included in deferred revenue and advance payments. | |||||||||
The Company maintains an allowance for doubtful accounts which represents its best estimate of probable losses inherent in the accounts receivable balances. The Company evaluates specific accounts when it becomes aware that a customer may not be able to meet its financial obligations due to deterioration of its liquidity or financial viability, credit ratings, or bankruptcy. In addition, the Company periodically adjusts this allowance based upon its review and assessment of the aging of receivables. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment | ' | ||||||||
(7) Property and Equipment | |||||||||
Property and equipment (in thousands) consisted of the following, as of: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Transportation equipment | $ | 48,917 | $ | 48,369 | |||||
Computer equipment and purchased software | 66,713 | 59,916 | |||||||
Furniture and equipment | 11,647 | 11,737 | |||||||
Leasehold improvements | 29,116 | 28,434 | |||||||
Internally developed software | 8,393 | 8,615 | |||||||
Property and equipment, gross | 164,786 | 157,071 | |||||||
Less: accumulated depreciation and amortization | (79,341 | ) | (60,320 | ) | |||||
Property and equipment, net | $ | 85,445 | $ | 96,751 | |||||
Included in transportation equipment is the Company’s owned corporate aircraft, including capitalizable costs related to the repairs to the aircraft, and aircraft-related equipment. The repair process for the aircraft has been completed and the aircraft was returned to service in the second quarter of 2012. As of December 31, 2013, the net asset value of the aircraft and aircraft-related equipment was $43.0 million, net of $5.6 million of accumulated depreciation. As of December 31, 2012, the net asset value of the aircraft and aircraft-related equipment was $44.0 million, net of $4.1 million of accumulated depreciation. | |||||||||
Included in computer equipment at December 31, 2013 and December 31, 2012 is $2.9 million and $2.5 million, respectively, acquired under capital lease arrangements. At December 31, 2013 and December 31, 2012, accumulated amortization relating to computer equipment under capital lease arrangements totaled $1.7 million and $0.7 million, respectively. | |||||||||
Depreciation and amortization expense related to property and equipment, including assets under capital leases, was $21.0 million, $17.7 million, and $9.4 million for the years ended December 31, 2013, 2012, and 2011, respectively. |
Deferred_Revenue_and_Advance_P
Deferred Revenue and Advance Payments | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Revenue and Advance Payments | ' | ||||||||
(8) Deferred Revenue and Advance Payments | |||||||||
Deferred revenue and advance payments (in thousands) from customers consisted of the following, as of: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Deferred product licenses revenue | $ | 14,538 | $ | 12,252 | |||||
Deferred subscription services revenue | 10,923 | 7,087 | |||||||
Deferred product support revenue | 167,771 | 145,343 | |||||||
Deferred other services revenue | 17,056 | 15,132 | |||||||
Gross current deferred revenue and advance payments | 210,288 | 179,814 | |||||||
Less: unpaid deferred revenue | (96,632 | ) | (78,565 | ) | |||||
Net current deferred revenue and advance payments | $ | 113,656 | $ | 101,249 | |||||
Non-current: | |||||||||
Deferred product licenses revenue | $ | 4,401 | $ | 3,280 | |||||
Deferred subscription services revenue | 1,161 | 1,028 | |||||||
Deferred product support revenue | 5,877 | 8,205 | |||||||
Deferred other services revenue | 1,175 | 852 | |||||||
Gross non-current deferred revenue and advance payments | 12,614 | 13,365 | |||||||
Less: unpaid deferred revenue | (3,644 | ) | (4,542 | ) | |||||
Net non-current deferred revenue and advance payments | $ | 8,970 | $ | 8,823 | |||||
The Company offsets its accounts receivable and deferred revenue for any unpaid items included in deferred revenue and advance payments. |
Cost_Method_Investment
Cost Method Investment | 12 Months Ended |
Dec. 31, 2013 | |
Cost Method Investment | ' |
(9) Cost Method Investment | |
In 2000, in exchange for licenses to MicroStrategy software, the Company acquired approximately 1.7 million shares of common stock of a provider of online software for event management, Web surveys, and event marketing (the “Investee”). The shares represented less than 5% of the total outstanding equity interests of the Investee at the date of the transaction. The Company accounted for this investment under the cost method of accounting and previously recorded a permanent impairment for this investment. In July 2011, the Company sold all of its equity interest in the Investee for approximately $3.4 million, which the Company recorded as a gain on sale of investment in the Company’s operating results for the year ended December 31, 2011. Sanju K. Bansal, who was Vice Chairman of the Board of Directors of the Company and the Company’s Executive Vice President and Chief Operating Officer as of the date of the July 2011 sale transaction, held approximately 10% of the total outstanding equity of the Investee and was also a member of the board of directors of the Investee as of the date of the July 2011 sale transaction. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingencies | ' | ||||||||
(10) Commitments and Contingencies | |||||||||
(a) Commitments | |||||||||
From time to time, the Company enters into certain types of contracts that require it to indemnify parties against third-party claims. These contracts primarily relate to agreements under which the Company has agreed to indemnify customers and partners for third-party claims arising from intellectual property infringement. The conditions of these obligations vary and generally a maximum obligation is explicitly stated. Because the conditions of these obligations vary and the maximum obligation is not always explicitly stated, the overall maximum amount of the Company’s indemnification obligations cannot be reasonably estimated. Historically, the Company has not been obligated to make significant payments for these obligations and does not currently expect to incur any material obligations in the future. Accordingly, the Company has not recorded an indemnification liability on its balance sheets as of December 31, 2013 or December 31, 2012. | |||||||||
On March 15, 2013, the Company completed the sale of its wholly-owned subsidiary, Angel.com, pursuant to a stock purchase and sale agreement, which contains certain customary seller representations, warranties, and indemnification provisions. | |||||||||
The Company leases office space and computer and other equipment under operating lease agreements. It also leases certain computer and other equipment under capital lease agreements and licenses certain software under other financing arrangements. Under the lease agreements, in addition to base rent, the Company is generally responsible for certain taxes, utilities and maintenance costs, and other fees; and several leases include options for renewal or purchase. The Company leases approximately 190,000 square feet of office space at a location in Northern Virginia that began serving as its corporate headquarters in October 2010. The term of the lease expires in December 2020. At December 31, 2013 and December 31, 2012, deferred rent of $20.1 million and $22.7 million, respectively, is included in other long-term liabilities and $2.8 million and $2.5 million, respectively, is included in current accrued expenses. | |||||||||
In July 2011, the Company entered into a lease for a 37.5% fractional interest in a corporate aircraft owned and managed by a fractional interest program operator. The Company terminated the fractional interest lease in September 2012 following the return to service of the Company’s owned corporate aircraft in the second quarter of 2012. | |||||||||
The following table shows future minimum rent payments under noncancellable operating and capital leases and agreements with initial terms of greater than one year, net of total future minimum rent payments to be received under noncancellable sublease agreements (in thousands), based on the expected due dates of the various installments as of December 31, 2013: | |||||||||
Year | Operating Leases | Capital Leases | |||||||
Amount | and Other Financing | ||||||||
Amount | |||||||||
2014 | $ | 25,736 | $ | 2,358 | |||||
2015 | 21,179 | 1,515 | |||||||
2016 | 17,652 | 104 | |||||||
2017 | 15,439 | 0 | |||||||
2018 | 14,881 | 0 | |||||||
Thereafter | 31,353 | 0 | |||||||
$ | 126,240 | $ | 3,977 | ||||||
Total rental expenses under operating lease agreements for the years ended December 31, 2013, 2012, and 2011 were $28.3 million, $26.4 million, and $25.3 million, respectively. | |||||||||
(b) Contingencies | |||||||||
In December 2011, DataTern, Inc. (“DataTern”) filed a complaint for patent infringement against the Company in the United States District Court for the District of Massachusetts. The complaint alleged that the Company infringes U.S. Patent No. 6,101,502 (the “’502 Patent”), allegedly owned by DataTern, by making, selling, or offering for sale several of the Company’s products and services including MicroStrategy 9™, MicroStrategy Intelligence Server™, MicroStrategy Business Intelligence Platform™, MicroStrategy Cloud Personal™, and other MicroStrategy applications for creating or using data mining, dashboards, business analytics, data storage and warehousing, and Web hosting support. The complaint accused the Company of willful infringement and sought an unspecified amount of damages, an award of attorneys’ fees, and preliminary and permanent injunctive relief. In October 2012, the case was stayed pending final judgment in a separate action involving the ‘502 Patent filed by DataTern in the Southern District of New York, in which MicroStrategy was not a party. Final judgment in that separate action was entered against DataTern in December 2012. In February 2013, MicroStrategy and DataTern filed motions for summary judgment of non-infringement in light of the New York judgment and the Court entered summary judgment against DataTern. In March 2013, DataTern filed a notice of appeal with the United States Court of Appeals for the Federal Circuit. In January 2014, the Court stayed DataTern’s appeal pending the disposition of DataTern’s appeal of the New York judgment. The Company has received indemnification requests from certain of its resellers who were sued by DataTern in the United States District Court for the District of Massachusetts in lawsuits alleging infringement of the ‘502 Patent. The outcome of these matters is not presently determinable, and the Company cannot make a reasonable estimate of the possible loss or range of loss with respect to these matters at this time. Accordingly, no estimated liability for these matters has been accrued in the accompanying Consolidated Financial Statements. | |||||||||
In December 2011, Vasudevan Software, Inc. (“Vasudevan”) filed a complaint for patent infringement against the Company in the United States District Court for the Northern District of California. The complaint alleged that the Company’s sale of MicroStrategy 9 and other MicroStrategy products infringes four patents allegedly owned by Vasudevan known as U.S. Patent Nos. 6,877,006, 7,167,864, 7,720,861, and 8,082,268, all entitled “Multimedia Inspection Database System for Dynamic Runtime Evaluation.” The complaint accused the Company of infringement, inducing others to infringe, and acts of contributory infringement with respect to the patents at issue and sought a permanent injunction, an unspecified amount of damages, and other relief as may be granted by the court. In October 2013, following a series of motions by the parties, the court dismissed the case, entered judgment of non-infringement based on a stipulation of non-infringement filed by Vasudevan, and also granted MicroStrategy’s motion for summary judgment of invalidity, finding the four patents in the suit invalid. In November 2013, Vasudevan filed its Notice of Appeal with the United States Court of Appeals for the Federal Circuit. Also in November 2013, Vasudevan filed a motion that was unopposed by the Company to consolidate the appeal with Vasudevan’s appeal of a related matter against TIBCO Software, which had also been dismissed by the District Court on summary judgment. In February 2014, in response to Vasudevan’s motion, the Court entered an order that the cases be treated as companion cases. The outcome of this matter on appeal is not presently determinable, and the Company cannot make a reasonable estimate of the possible loss or range of loss with respect to this matter at this time. Accordingly, no estimated liability for this matter has been accrued in the accompanying Consolidated Financial Statements. | |||||||||
The Company is also involved in various other legal proceedings arising in the normal course of business. Although the outcomes of these other legal proceedings are inherently difficult to predict, management does not expect the resolution of these other legal proceedings to have a material adverse effect on its financial position, results of operations, or cash flows. | |||||||||
The Company has contingent liabilities that, in management’s judgment, are not probable of assertion. If such unasserted contingent liabilities were to be asserted, or become probable of assertion, the Company may be required to record significant expenses and liabilities in the period in which these liabilities are asserted or become probable of assertion. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
(11) Income Taxes | |||||||||||||
U.S. and international components of income from continuing operations before income taxes (in thousands) were comprised of the following for the periods indicated: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. | $ | (6,158 | ) | $ | 587 | $ | (3,490 | ) | |||||
Foreign | 22,909 | 31,620 | 28,690 | ||||||||||
Total | $ | 16,751 | $ | 32,207 | $ | 25,200 | |||||||
The benefit from or provision for income taxes from continuing operations (in thousands) consisted of the following for the periods indicated: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | (12,404 | ) | $ | 533 | $ | 1,222 | ||||||
State | 172 | 68 | 91 | ||||||||||
Foreign | 5,994 | 7,269 | 5,344 | ||||||||||
$ | (6,238 | ) | $ | 7,870 | $ | 6,657 | |||||||
Deferred: | |||||||||||||
Federal | $ | (3,417 | ) | $ | 995 | $ | (1,095 | ) | |||||
State | 267 | 1,310 | (305 | ) | |||||||||
Foreign | (411 | ) | (441 | ) | (1,864 | ) | |||||||
$ | (3,561 | ) | $ | 1,864 | $ | (3,264 | ) | ||||||
Total (benefit) provision | $ | (9,799 | ) | $ | 9,734 | $ | 3,393 | ||||||
The benefit from or provision for income taxes from continuing operations differs from the amount computed by applying the federal statutory income tax rate to the Company’s income from continuing operations before income taxes as follows for the periods indicated: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax expense at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State taxes, net of federal tax effect | 2 | % | 3 | % | –0.5 | % | |||||||
Foreign earnings taxed at different rates | –18.3 | % | –21.5 | % | –23.6 | % | |||||||
Withholding tax | 9.7 | % | 6.3 | % | 5.4 | % | |||||||
Foreign tax credit | –5.4 | % | –3.4 | % | –2.5 | % | |||||||
Other international components | 3.4 | % | 1.9 | % | 3.8 | % | |||||||
Change in valuation allowance | –0.8 | % | 0.1 | % | –7.1 | % | |||||||
Deferred tax adjustments and rate changes | –2.8 | % | 0.6 | % | –1.4 | % | |||||||
Meals and entertainment | 4.5 | % | 2.9 | % | 4 | % | |||||||
Non-deductible officers compensation | 7.1 | % | 2.1 | % | 2.6 | % | |||||||
Personal use of corporate aircraft | 2.5 | % | 2.6 | % | 2.2 | % | |||||||
Subpart F income | 2.4 | % | 1.2 | % | 1.4 | % | |||||||
Research and development tax credit | –12.6 | % | 0.7 | % | –3.3 | % | |||||||
Other permanent differences | 0.8 | % | 0.6 | % | -0.2 | % | |||||||
Release of unrecognized tax benefits | –86.0 | % | –1.9 | % | –2.3 | % | |||||||
Total | –58.5 | % | 30.2 | % | 13.5 | % | |||||||
The 2013 “research and development tax credit” rate of negative 12.6% is comprised of U.S. research and development tax credits generated in 2013 and 2012. The 2012 U.S. research and development tax credit was retroactively reinstated by the American Taxpayer Relief Act of 2012 signed into law on January 2, 2013 and recorded as a tax benefit in the first quarter of 2013. | |||||||||||||
The Company’s U.S. and foreign effective tax rates for income from continuing operations before income taxes were as follows for the periods indicated: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. | 249.7 | % | 495.1 | % | 2.5 | % | |||||||
Foreign | 24.4 | % | 21.6 | % | 12.1 | % | |||||||
Combined | –58.5 | % | 30.2 | % | 13.5 | % | |||||||
Except as discussed below, the Company intends to indefinitely reinvest its undistributed earnings of all of its foreign subsidiaries. Therefore, the annualized effective tax rate applied to the Company’s pre-tax income from continuing operations does not include any provision for U.S. federal and state income taxes on the amount of the undistributed foreign earnings. U.S. federal tax laws, however, require the Company to include in its U.S. taxable income certain investment income earned outside of the U.S. in excess of certain limits (“Subpart F deemed dividends”). Because Subpart F deemed dividends are already required to be recognized in the Company’s U.S. federal income tax return, the Company regularly repatriates Subpart F deemed dividends and no additional tax is incurred on the distribution. The Company repatriated Subpart F deemed dividends to the U.S. of $1.0 million and $2.5 million in 2013 and 2012, respectively, with no additional tax incurred. No Subpart F income was repatriated in 2011. As of December 31, 2013 and December 31, 2012, the amount of cash and cash equivalents and short-term investments, excluding those held for sale, held by U.S. entities was $160.5 million and $39.3 million, respectively, and by non-U.S. entities was $196.9 million and $183.8 million, respectively. If the cash and cash equivalents and short-term investments held by non-U.S. entities were to be repatriated to the U.S., the Company would generate U.S. taxable income to the extent of the Company’s undistributed foreign earnings, which amounted to $192.7 million at December 31, 2013. Although the tax impact of repatriating these earnings is difficult to determine, the Company would not expect the maximum effective tax rate that would be applicable to such repatriation to exceed the U.S. statutory rate of 35.0%, after considering applicable foreign tax credits. | |||||||||||||
Deferred income taxes reflect the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows for the periods indicated: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets, net: | |||||||||||||
Net operating loss carryforwards | $ | 981 | $ | 5,439 | |||||||||
Tax credits | 8,723 | 9,474 | |||||||||||
Intangible assets | 1,317 | 2,624 | |||||||||||
Deferred revenue adjustment | 2,746 | 2,858 | |||||||||||
Accrued compensation | 17,465 | 15,684 | |||||||||||
Deferred rent | 3,709 | 4,692 | |||||||||||
Other | 2,911 | 3,523 | |||||||||||
37,852 | 44,294 | ||||||||||||
Valuation allowance | (77 | ) | (231 | ) | |||||||||
Deferred tax assets, net of valuation allowance | 37,775 | 44,063 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Prepaid expenses and other | 1,084 | 686 | |||||||||||
Property and equipment | 15,751 | 15,992 | |||||||||||
Capitalized software development costs | 3,791 | 3,859 | |||||||||||
Total deferred tax liabilities | 20,626 | 20,537 | |||||||||||
Total net deferred tax asset | $ | 17,149 | $ | 23,526 | |||||||||
Reported as: | |||||||||||||
Current deferred tax assets, net | 21,555 | 26,616 | |||||||||||
Non-current deferred tax assets, net | 3,204 | 3,664 | |||||||||||
Current deferred tax liabilities | (422 | ) | (523 | ) | |||||||||
Non-current deferred tax liabilities | (7,188 | ) | (6,231 | ) | |||||||||
Total net deferred tax asset | 17,149 | $ | 23,526 | ||||||||||
The table of deferred tax assets and liabilities shown above does not include a deferred tax asset of $23.4 million related to U.S. federal net operating loss carryforwards of $60.1 million as of December 31, 2012 that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. During the year ended December 31, 2013, the Company was able to recognize and utilize such net operating loss carryforwards in connection with the taxable gain arising from the sale of Angel.com. | |||||||||||||
As of December 31, 2013, the Company had gross unrecognized tax benefits of $2.6 million, which are recorded in other long-term liabilities. The change in unrecognized tax benefits (in thousands), net of interest and penalties, is presented in the table below: | |||||||||||||
Unrecognized tax benefits at January 1, 2013 | $ | 16,095 | |||||||||||
Decrease related to positions taken in prior period | (157 | ) | |||||||||||
Increase related to positions taken in current period | 372 | ||||||||||||
Decrease related to settlement with tax authorities | (1,327 | ) | |||||||||||
Decrease related to expiration of statute of limitations | (12,671 | ) | |||||||||||
Unrecognized tax benefits at December 31, 2013 | $ | 2,312 | |||||||||||
If recognized, $2.1 million of the gross unrecognized tax benefits would impact the Company’s effective tax rate. Over the next 12 months, the amount of the Company’s liability for unrecognized tax benefits shown above is not expected to change significantly. The Company recognizes estimated accrued interest related to unrecognized tax benefits in the provision for income tax accounts. During the year ended December 31, 2013, the Company released accrued interest of $1.3 million. During the years ended December 31, 2013, 2012, and 2011, the Company recognized approximately $0.2 million, $0.3 million, and $0.5 million, respectively, in accrued interest. The amount of accrued interest related to the above unrecognized tax benefits was approximately $0.3 million and $1.2 million as of December 31, 2013 and December 31, 2012, respectively. | |||||||||||||
The Company files tax returns in numerous foreign countries as well as the U.S. and its tax returns may be subject to audit by tax authorities in all countries in which it files. Each country has its own statute of limitations for making assessment of additional tax liabilities. The Company’s U.S. tax returns for tax years from 2010 forward are subject to examination by the Internal Revenue Service. | |||||||||||||
The Company’s major foreign tax jurisdictions and the tax years that remain subject to examination are Germany and the United Kingdom for tax years 2009 forward, and Spain for tax years 2011 forward. The Company settled tax examinations in Germany and Spain in the second quarter and fourth quarter of 2013, respectively. To date there have been no material audit assessments related to audits in the U.S. or any of the applicable foreign jurisdictions. | |||||||||||||
The Company had $0.0 million and $71.2 million of U.S. net operating loss carryforwards as of December 31, 2013 and 2012, respectively. As of December 31, 2012, the Company did not recognize a deferred tax asset of $23.4 million related to U.S. net operating loss carryforwards of $60.1 million that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. The Company had $4.4 million and $3.6 million of foreign net operating loss carryforwards as of December 31, 2013 and 2012, respectively. The Company had domestic research and development tax credit, foreign tax credit, and alternative minimum tax credit carryforward tax assets totaling $8.7 million and $9.5 million at December 31, 2013 and 2012, respectively, which begin to expire in 2016. The timing and ability of the Company to use these losses and credits may be limited by Internal Revenue Code provisions regarding changes in ownership of the Company as discussed below. | |||||||||||||
The Company’s valuation allowances of $0.1 million and $0.2 million at December 31, 2013 and 2012, respectively, primarily relate to certain foreign net operating loss carryforward tax assets. | |||||||||||||
In determining the Company’s provision for or benefit from income taxes, net deferred tax assets, liabilities, and valuation allowances, management is required to make judgments and estimates related to projections of domestic and foreign profitability, the timing and extent of the utilization of net operating loss carryforwards, applicable tax rates, transfer pricing methodologies, and prudent and feasible tax planning strategies. As a multinational company, the Company is required to calculate and provide for estimated income tax liabilities for each of the tax jurisdictions in which it operates. This process involves estimating current tax obligations and exposures in each jurisdiction, as well as making judgments regarding the future recoverability of deferred tax assets. Changes in the estimated level of annual pre-tax income, changes in tax laws, particularly related to the utilization of net operating losses in various jurisdictions, and changes resulting from tax audits can all affect the overall effective income tax rate which, in turn, impacts the overall level of income tax expense or benefit and net income. | |||||||||||||
Judgments and estimates related to the Company’s projections and assumptions are inherently uncertain; therefore, actual results could differ materially from projections. The timing and manner in which the Company will use research and development tax credit carryforward tax assets, alternative minimum tax credit carryforward tax assets, and foreign tax credit carryforward tax assets in any year, or in total, may be limited by provisions of the Internal Revenue Code regarding changes in the Company’s ownership. Currently, the Company expects to use the tax assets, subject to Internal Revenue Code limitations, within the carryforward periods. Valuation allowances have been established where the Company has concluded that it is more likely than not that such deferred tax assets are not realizable. | |||||||||||||
Section 382 provides an annual limitation on the amount of federal net operating losses and tax credits that may be used in the event of an ownership change. The limitation is based on, among other things, the value of the company as of the change date multiplied by a U.S. federal long-term tax exempt interest rate. The Company does not currently expect the limitations under the §382 ownership change rules to impact the Company’s ability to use its net operating loss carryforwards or tax credits that existed as of the date of the ownership change. |
Sharebased_Compensation
Share-based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Share-based Compensation | ' | ||||||||||||||||
(12) Share-based Compensation | |||||||||||||||||
In September 2013, the Board of Directors approved, subject to stockholder approval, the Company’s 2013 Stock Incentive Plan (the “2013 Plan”), under which the Company’s employees, officers, directors, and other eligible participants may be awarded various types of share-based compensation. The Board of Directors authorized 600,000 shares of the Company’s class A common stock for issuance under the 2013 Plan. No awards may be issued more than ten years after the 2013 Plan’s effective date. Shares issued under the 2013 Plan may consist in whole or in part of authorized but unissued shares or treasury shares. Stock options that are granted under the 2013 Plan must have an exercise price equal to at least the fair market value of the Company’s class A common stock on the date of grant, become exercisable as established by the Board of Directors or the Compensation Committee of the Board of Directors, and expire no later than ten years following the date of grant. The Company recognizes share-based compensation expense associated with such stock option awards on a straight-line basis over the award’s requisite service period (generally, the vesting period). The share-based compensation expense is based on the fair value of such awards on the date of grant, as estimated using the Black-Scholes option pricing model. The Company expects to obtain stockholder approval of the 2013 Plan at the Company’s annual meeting of stockholders in 2014. | |||||||||||||||||
The Black-Scholes option pricing model requires the input of certain management assumptions, including the expected term, expected stock price volatility, risk-free interest rate, and expected dividend yield. The Company estimates the term over which optionholders are expected to hold their stock options by using the simplified method for “plain-vanilla” stock option awards because the Company’s stock option exercise history does not provide a reasonable basis to compute the expected term for stock options granted under the 2013 Plan. The Company relies exclusively on its historical stock price volatility to estimate the expected stock price volatility over the expected term because the Company believes future volatility is unlikely to differ from the past. In estimating the expected stock price volatility, the Company uses a simple average calculation method. The risk-free interest rate is based on U.S. Treasury securities with terms that approximate the expected term of the stock options. The expected dividend yield is based on the Company’s past cash dividend history and anticipated future cash dividend payments. The expected dividend yield is zero, as the Company has not previously declared cash dividends and does not currently intend to declare cash dividends in the foreseeable future. These assumptions are based on management’s best judgment, and changes to these assumptions could materially affect the fair value estimates and amount of share-based compensation expense recognized. | |||||||||||||||||
In September 2013, the Compensation Committee of the Board of Directors approved, subject to stockholder approval of the 2013 Plan, the grant of stock options to purchase an aggregate of 600,000 shares of class A common stock to certain Company executives pursuant to the 2013 Plan. These awards will be terminated or forfeited if stockholder approval is not obtained within 12 months of the date of grant of the award, and no award may be exercised or settled prior to such stockholder approval. However, the Company considers stockholder approval of the 2013 Plan to be perfunctory since our Chairman and Chief Executive Officer holds a majority of the total voting power of all the Company’s outstanding voting stock. As of December 31, 2013, there were no shares of class A common stock authorized for additional grants. In the event stockholder approval of the 2013 Plan is not obtained within 12 months of the date of grant of the award, the cumulative share-based compensation expense associated with stock option awards granted under the 2013 Plan would be reversed. The stock option awards vest in equal annual installments over an approximately four-year vesting period (unless accelerated upon a change in control event (as defined in the stock option agreement for the applicable award) or otherwise in accordance with provisions of the 2013 Plan or applicable option agreement). | |||||||||||||||||
Prior to the adoption of the 2013 Plan, the Company had maintained other share-based compensation plans with respect to the Company’s class A common stock (the “Other Stock Incentive Plans”), but had not granted any share-based awards under the Other Stock Incentive Plans since the first quarter of 2004 and is no longer authorized to grant any awards under such plans. As of December 31, 2013, there were no outstanding share-based awards granted under the Other Stock Incentive Plans. | |||||||||||||||||
The following table summarizes the Company’s stock option activity (in thousands, except per share data and years) for the periods indicated: | |||||||||||||||||
Stock Options Outstanding | |||||||||||||||||
Shares | Weighted Average | Aggregate | Weighted Average | ||||||||||||||
Exercise Price | Intrinsic | Remaining Contractual | |||||||||||||||
Per Share | Value | Term (Years) | |||||||||||||||
Balance as of January 1, 2011 | 673 | $ | 22.42 | ||||||||||||||
Granted | 0 | 0 | |||||||||||||||
Exercised | (143 | ) | 17.47 | $ | 13,682 | ||||||||||||
Forfeited/Expired | (13 | ) | 155.77 | ||||||||||||||
Balance as of December 31, 2011 | 517 | $ | 20.31 | ||||||||||||||
Granted | 0 | 0 | |||||||||||||||
Exercised | (501 | ) | 20.3 | $ | 51,564 | ||||||||||||
Forfeited/Expired | 0 | 0 | |||||||||||||||
Balance as of December 31, 2012 | 16 | $ | 20.81 | ||||||||||||||
Granted | 600 | 92.84 | |||||||||||||||
Exercised | (16 | ) | 20.81 | $ | 1,262 | ||||||||||||
Forfeited/Expired | 0 | 0 | |||||||||||||||
Balance as of December 31, 2013 | 600 | $ | 92.84 | ||||||||||||||
Exercisable as of December 31, 2013 | 0 | $ | 0 | $ | 0 | 0 | |||||||||||
Expected to vest as of December 31, 2013 | 600 | $ | 92.84 | $ | 18,582 | 9.7 | |||||||||||
Total | 600 | $ | 92.84 | $ | 18,582 | 9.7 | |||||||||||
No stock options vested during the years ended December 31, 2013, 2012, and 2011. The Company expects all unvested options at December 31, 2013 to fully vest in future years in accordance with their vesting schedules and therefore share-based compensation expense has not been adjusted for any expected forfeitures. The weighted average grant date fair value of stock option awards using the Black-Scholes option pricing model was $42.03 for each share subject to a stock option granted during the year ended December 31, 2013, based on the following assumptions: | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
Expected term of options in years | 6.3 | ||||||||||||||||
Expected volatility | 42.8 | % | |||||||||||||||
Risk-free interest rate | 2.5 | % | |||||||||||||||
Expected dividend yield | 0 | % | |||||||||||||||
The Company recognized approximately $2.1 million in share-based compensation expense for the year ended December 31, 2013 from stock options granted under the 2013 Plan. The Company recognized no share-based compensation expense for the years ended December 2013, 2012, and 2011 from stock options granted under the Other Stock Incentive Plans as all such options fully vested in prior years. As of December 31, 2013, there was approximately $23.1 million of total unrecognized share-based compensation expense related to unvested stock options. The Company expects to recognize this remaining share-based compensation expense over a weighted-average period of approximately 3.6 years. | |||||||||||||||||
During the year ended December 31, 2013, the Company was able to recognize and utilize net operating loss carryforwards arising directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting that was generated primarily in prior years under the Other Stock Incentive Plans. Accordingly, stockholders’ equity increased by $23.6 million during the year ended December 31, 2013. No windfall tax benefit was realized from the exercise of stock options during the years ended December 31, 2012 and 2011. | |||||||||||||||||
MicroStrategy’s former subsidiary, Angel.com, previously maintained a stock incentive plan under which certain employees, officers, and directors of MicroStrategy and Angel.com were granted options to purchase shares of the class A common stock of Angel.com, subject to the satisfaction of both performance and continued service conditions. Share-based compensation expense would have been recognized over the requisite service period of the award based on the probability of the satisfaction of the performance condition, reduced by the number of awards that were not expected to vest due to the failure to satisfy the continued service condition. In connection with the sale of Angel.com in the first quarter of 2013, the Angel.com stock incentive plan was terminated and all outstanding options thereunder were terminated in exchange for cash payments totaling $8.0 million. Prior to their termination, no share-based compensation expense was recognized for these awards for the years ended December 31, 2013, 2012, and 2011 because the performance condition had not been satisfied. |
Basic_and_Diluted_Earnings_per
Basic and Diluted Earnings per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Basic and Diluted Earnings per Share | ' | ||||||||||||
(13) Basic and Diluted Earnings per Share | |||||||||||||
Potential shares of common stock are included in the diluted earnings per share calculation when dilutive. Potential shares of common stock, consisting of common stock issuable upon exercise of outstanding employee stock options, are calculated using the treasury stock method. | |||||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share data) for the periods indicated: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Income (loss) from: | |||||||||||||
Continuing operations, net of tax | $ | 26,550 | $ | 22,473 | $ | 21,807 | |||||||
Discontinued operations, net of tax | 56,782 | (1,927 | ) | (3,867 | ) | ||||||||
Net income | $ | 83,332 | $ | 20,546 | $ | 17,940 | |||||||
Denominator: | |||||||||||||
Weighted average common shares of class A common stock | 9,073 | 8,768 | 8,341 | ||||||||||
Weighted average common shares of class B common stock | 2,227 | 2,227 | 2,378 | ||||||||||
Total weighted average common stock shares outstanding | 11,300 | 10,995 | 10,719 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options | 1 | 179 | 347 | ||||||||||
Adjusted weighted average shares | 11,301 | 11,174 | 11,066 | ||||||||||
Earnings per share: | |||||||||||||
Basic earnings (loss) per share | |||||||||||||
From continuing operations | $ | 2.35 | $ | 2.05 | $ | 2.03 | |||||||
From discontinued operations | 5.02 | (0.18 | ) | (0.36 | ) | ||||||||
Basic earnings per share | $ | 7.37 | $ | 1.87 | $ | 1.67 | |||||||
Diluted earnings (loss) per share: | |||||||||||||
From continuing operations | $ | 2.35 | $ | 2.01 | $ | 1.97 | |||||||
From discontinued operations | 5.02 | (0.17 | ) | (0.35 | ) | ||||||||
Diluted earnings per share | $ | 7.37 | $ | 1.84 | $ | 1.62 | |||||||
Stock options issued under the 2013 Plan to purchase an aggregate of 600,000 shares of class A common stock were excluded from the diluted earnings per share computation for the year ended December 31, 2013 because the effect of their inclusion would have been anti-dilutive. No options to purchase shares of common stock were excluded from the diluted earnings per share computation for the years ended December 31, 2012 and 2011. |
Treasury_Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2013 | |
Treasury Stock | ' |
(14) Treasury Stock | |
The Board of Directors has authorized the Company’s repurchase of up to an aggregate of $800.0 million of its class A common stock from time to time on the open market through April 29, 2018 (the “2005 Share Repurchase Program”), although the program may be suspended or discontinued by the Company at any time. The timing and amount of any shares repurchased will be determined by the Company’s management based on its evaluation of market conditions and other factors. The 2005 Share Repurchase Program may be funded using the Company’s working capital, as well as proceeds from any other funding arrangements that the Company may enter into in the future. As of December 31, 2013, the Company had repurchased an aggregate of 3,826,947 shares of its class A common stock at an average price per share of $90.23 and an aggregate cost of $345.3 million pursuant to the 2005 Share Repurchase Program. The average price per share and aggregate cost amounts disclosed above include broker commissions. During the years ended December 31, 2013, 2012, and 2011, the Company did not repurchase any shares of its class A common stock pursuant to the 2005 Share Repurchase Program. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plan | ' |
(15) Employee Benefit Plan | |
The Company sponsors a benefit plan to provide retirement benefits for its employees, known as the MicroStrategy 401(k) Savings Plan (the “Plan”). Participants may make voluntary contributions to the Plan of up to 50% of their annual base pre-tax compensation, cash bonuses, and commissions not to exceed the federally determined maximum allowable contribution amounts. The Plan permits for discretionary company contributions. Effective April 1, 2008, the Company elected to make a matching contribution to each plan participant in the amount of 50% of the first 6% of a participant’s contributions, up to a maximum of $3,000 per year. A participant vests in the matching contributions in increments based on the participant’s years of employment by the Company, becoming fully vested after completing six years of employment. The Company made contributions to the Plan totaling $2.7 million, $2.6 million, and $2.6 million during the years ended December 31, 2013, 2012, and 2011, respectively. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations | ' | ||||||||||||
(16) Discontinued Operations | |||||||||||||
On February 25, 2013, the Company committed to a plan to sell its Angel.com business. On March 15, 2013, the Company completed the sale of its equity interest in Angel.com for consideration to the Company of approximately $111.2 million, resulting in a net cash inflow of $100.7 million after $10.5 million in transaction costs. The sale resulted in a gain of $57.4 million, net of tax. As of December 31, 2012, the associated assets and liabilities of the Angel.com business are classified as held-for-sale and are presented in the following table (in thousands): | |||||||||||||
December 31, 2012 | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 1,350 | |||||||||||
Accounts receivable, net of unpaid deferred revenue of $554 and allowance for doubtful accounts of $347, respectively | 4,720 | ||||||||||||
Prepaid expenses, deposits, and other assets | 738 | ||||||||||||
Property and equipment, net | 3,763 | ||||||||||||
Total assets | $ | 10,571 | |||||||||||
Liabilities: | |||||||||||||
Accounts payable and accrued expenses | $ | 1,587 | |||||||||||
Accrued compensation and employee benefits | 2,364 | ||||||||||||
Gross deferred revenue and advance payments, net of unpaid deferred revenue of $554 | 639 | ||||||||||||
Other liabilities | 99 | ||||||||||||
Total liabilities | $ | 4,689 | |||||||||||
Net assets and liabilities of disposal group | $ | 5,882 | |||||||||||
The following table summarizes the revenues and pre-tax loss generated by the Angel.com business during the years ended December 31, 2013, 2012, and 2011, respectively, in addition to the pre-tax gain on the sale of Angel.com recorded by the Company during the year ended December 31, 2013 (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Angel.com revenues | $ | 6,320 | $ | 28,882 | $ | 24,982 | |||||||
Angel.com pre-tax loss | $ | 986 | $ | 2,976 | $ | 5,900 | |||||||
MicroStrategy pre-tax gain on sale | $ | 94,925 | $ | 0 | $ | 0 | |||||||
All other Notes to the Consolidated Financial Statements that were impacted by this discontinued operation have been reclassified accordingly. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
(17) Segment Information | |||||||||||||||||
The Company manages its business in one operating segment. As discussed in Note 16, the Angel.com business was sold on March 15, 2013. Prior to its divestiture, the Angel.com business was the sole component of the former operating segment “Other.” The Company’s one operating segment is engaged in the design, development, marketing, and sales of analytics software through licensing arrangements and cloud-based subscriptions and related services. It includes the MicroStrategy Analytics Platform, MicroStrategy Mobile, and MicroStrategy Cloud. The Company has also included the MicroStrategy Loyalty Platform, branded as MicroStrategy Alert, and the MicroStrategy Identity Platform, branded as MicroStrategy Usher, as part of its one operating segment for each of the years ended December 31, 2013, 2012, and 2011 because these platforms did not generate significant revenues during these periods. The following table presents total revenues from continuing operations, gross profit from continuing operations, and long-lived assets, excluding long-term deferred tax assets and assets held-for-sale, (in thousands) according to geographic region: | |||||||||||||||||
Geographic regions: | Domestic | EMEA | Other Regions | Consolidated | |||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Total revenues | $ | 343,073 | $ | 169,194 | $ | 63,621 | $ | 575,888 | |||||||||
Gross profit | $ | 261,134 | $ | 123,373 | $ | 52,812 | $ | 437,319 | |||||||||
Year ended December 31, 2012 | |||||||||||||||||
Total revenues | $ | 326,333 | $ | 177,543 | $ | 61,848 | $ | 565,724 | |||||||||
Gross profit | $ | 241,440 | $ | 133,986 | $ | 49,222 | $ | 424,648 | |||||||||
Year ended December 31, 2011 | |||||||||||||||||
Total revenues | $ | 304,407 | $ | 173,961 | $ | 58,800 | $ | 537,168 | |||||||||
Gross profit | $ | 225,687 | $ | 133,852 | $ | 46,931 | $ | 406,470 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Long-lived assets | $ | 89,342 | $ | 7,111 | $ | 5,909 | $ | 102,362 | |||||||||
As of December 31, 2012 | |||||||||||||||||
Long-lived assets | $ | 95,528 | $ | 9,650 | $ | 7,053 | $ | 112,231 | |||||||||
The domestic region consists of the United States and Canada. The EMEA region includes operations in Europe, the Middle East, and Africa. The other regions include all other foreign countries, generally comprising Latin America and the Asia Pacific region. For the years ended December 31, 2013, 2012, and 2011, no individual foreign country accounted for 10% or more of total consolidated revenues from continuing operations. | |||||||||||||||||
For the years ended December 31, 2013, 2012, and 2011, no individual customer accounted for 10% or more of total consolidated revenues from continuing operations. | |||||||||||||||||
As of December 31, 2013 and 2012, no individual foreign country accounted for 10% or more of total consolidated assets, excluding assets held-for-sale. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||||||
(18) Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||||||
The following tables contain unaudited Statement of Operations information for each quarter of 2013 and 2012. The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. | |||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Year | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Revenues | $ | 130,183 | $ | 137,905 | $ | 141,919 | $ | 165,881 | $ | 575,888 | |||||||||||
Gross profit | $ | 94,282 | $ | 101,459 | $ | 108,666 | $ | 132,912 | $ | 437,319 | |||||||||||
(Loss) income from continuing operations, net of tax | $ | (5,191 | ) | $ | (1,553 | ) | $ | 17,146 | $ | 16,148 | $ | 26,550 | |||||||||
Discontinued operations, net of tax | 56,782 | 0 | 0 | 0 | 56,782 | ||||||||||||||||
Net income | $ | 51,591 | $ | (1,553 | ) | $ | 17,146 | $ | 16,148 | $ | 83,332 | ||||||||||
Earnings (loss) per share:(1) | |||||||||||||||||||||
Basic, from continuing operations | $ | (0.46 | ) | $ | (0.14 | ) | $ | 1.52 | $ | 1.43 | $ | 2.35 | |||||||||
Basic, from discontinued operations | 5.03 | 0 | 0 | 0 | 5.02 | ||||||||||||||||
Basic earnings (loss) per share | $ | 4.57 | $ | (0.14 | ) | $ | 1.52 | $ | 1.43 | $ | 7.37 | ||||||||||
Diluted, from continuing operations | $ | (0.46 | ) | $ | (0.14 | ) | $ | 1.52 | $ | 1.43 | $ | 2.35 | |||||||||
Diluted, from discontinued operations | 5.03 | 0 | 0 | 0 | 5.02 | ||||||||||||||||
Diluted earnings (loss) per share | $ | 4.57 | $ | (0.14 | ) | $ | 1.52 | $ | 1.43 | $ | 7.37 | ||||||||||
Quarter Ended | |||||||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | Year | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||
2012 | |||||||||||||||||||||
Revenues | $ | 138,334 | $ | 135,324 | $ | 136,080 | $ | 155,986 | $ | 565,724 | |||||||||||
Gross profit | $ | 102,604 | $ | 101,264 | $ | 101,233 | $ | 119,547 | $ | 424,648 | |||||||||||
Income from continuing operations, net of tax | $ | 1,061 | $ | 7,928 | $ | 5,134 | $ | 8,350 | $ | 22,473 | |||||||||||
Discontinued operations, net of tax | (789 | ) | (657 | ) | (371 | ) | (110 | ) | (1,927 | ) | |||||||||||
Net income | $ | 272 | $ | 7,271 | $ | 4,763 | $ | 8,240 | $ | 20,546 | |||||||||||
Earnings (loss) per share:(1) | |||||||||||||||||||||
Basic, from continuing operations | $ | 0.1 | $ | 0.73 | $ | 0.46 | $ | 0.74 | $ | 2.05 | |||||||||||
Basic, from discontinued operations | (0.07 | ) | (0.06 | ) | (0.03 | ) | (0.01 | ) | (0.18 | ) | |||||||||||
Basic earnings per share | $ | 0.03 | $ | 0.67 | $ | 0.43 | $ | 0.73 | $ | 1.87 | |||||||||||
Diluted, from continuing operations | $ | 0.09 | $ | 0.71 | $ | 0.46 | $ | 0.74 | $ | 2.01 | |||||||||||
Diluted, from discontinued operations | (0.07 | ) | (0.06 | ) | (0.03 | ) | (0.01 | ) | (0.17 | ) | |||||||||||
Diluted earnings per share | $ | 0.02 | $ | 0.65 | $ | 0.43 | $ | 0.73 | $ | 1.84 | |||||||||||
(1) | The sum of the basic and diluted earnings (loss) per share for the four quarters may differ from annual earnings (loss) per share as the weighted-average shares outstanding are computed independently for each of the quarters presented. |
Schedule_II_Valuation_And_Qual
Schedule II Valuation And Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule II Valuation And Qualifying Accounts | ' | ||||||||||||||||
SCHEDULE II | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
For the years ended December 31, 2013, 2012, and 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Balance at the | Additions (1) | Deductions | Balance at | ||||||||||||||
beginning of | the end of | ||||||||||||||||
the period | the period | ||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||
December 31, 2013 | $ | 4,366 | 2,281 | (2,658 | ) | $ | 3,989 | ||||||||||
December 31, 2012 | $ | 5,628 | 2,361 | (3,623 | ) | $ | 4,366 | ||||||||||
December 31, 2011 | $ | 4,364 | 1,449 | (185 | ) | $ | 5,628 | ||||||||||
Deferred tax valuation allowance: | |||||||||||||||||
December 31, 2013 | $ | 231 | 77 | (231 | ) | $ | 77 | ||||||||||
December 31, 2012 | $ | 736 | 7 | (512 | ) | $ | 231 | ||||||||||
December 31, 2011 | $ | 2,710 | 0 | (1,974 | ) | $ | 736 | ||||||||||
-1 | Reductions in/charges to revenues and expenses. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Basis of Presentation | ' | ||
(a) Basis of Presentation | |||
The accompanying Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||
The Company must classify a business line as discontinued operations once the Company has committed to a plan to sell the business. On February 25, 2013, the Company committed to a plan to sell its wholly-owned subsidiary, Angel.com Incorporated (“Angel.com”), which focused outside of the Company’s analytics software and services offerings. On March 15, 2013, the Company completed the sale of this business. Historical financial information presented in the Consolidated Financial Statements and Notes to Consolidated Financial Statements have been reclassified to conform to current year presentation. Refer to Note 16, Discontinued Operations, to the Consolidated Financial Statements for further information. | |||
Certain other amounts in the prior years’ Consolidated Financial Statements and Notes to Consolidated Financial Statements have also been reclassified to conform to current year presentation. Revenues and cost of revenues have been reclassified in the Consolidated Statements of Operations and deferred revenues have been reclassified in Note 8, Deferred Revenue and Advance Payments, to reflect the new presentation of the Company’s three different types of revenue. In addition, bad debt expense and changes in accounts receivable have been reclassified within operating activities in the Consolidated Statements of Cash Flows. | |||
The Company is not aware of any subsequent event which would require recognition. | |||
Use of Estimates | ' | ||
(b) Use of Estimates | |||
The preparation of the Consolidated Financial Statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. On an on-going basis, the Company evaluates its estimates, including, but not limited to, those related to revenue recognition, allowance for doubtful accounts, investments, derivative financial instruments, software development costs, fixed assets, intangible assets, variable compensation, share-based compensation, income taxes, including the carrying value of deferred tax assets, and litigation and contingencies, including liabilities that the Company deems not probable of assertion. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets, liabilities, and equity that are not readily apparent from other sources. Actual results and outcomes could differ from these estimates and assumptions. | |||
Fair Value Measurements | ' | ||
(c) Fair Value Measurements | |||
The Company measures certain assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that is expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a three-level hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques. The three levels of the fair value hierarchy are described below: | |||
Level 1: | Quoted (unadjusted) prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||
Level 2: | Inputs other than quoted prices that are either directly or indirectly observable, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||
Level 3: | Inputs that are generally unobservable, supported by little or no market activity, and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. | ||
The categorization of an asset or liability within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation techniques used by the Company when measuring fair value maximize the use of observable inputs and minimize the use of unobservable inputs. | |||
The Company also estimates the fair value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and accrued compensation and employee benefits. The Company considers the carrying value of these instruments in the financial statements to approximate fair value due to their short maturities. | |||
Cash and Cash Equivalents and Restricted Cash | ' | ||
(d) Cash and Cash Equivalents and Restricted Cash | |||
Cash equivalents include bank deposits, U.S. Treasury bills, and equivalent funds. The Company generally considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash consists of cash balances restricted in use by contractual obligations with third parties. | |||
Short-term Investments | ' | ||
(e) Short-term Investments | |||
The Company periodically invests a portion of its excess cash in short-term investment instruments. All highly liquid investments with stated maturity dates between three months and one year from the purchase date are classified as short-term investments. The Company determines the appropriate classification of its short-term investments at the time of purchase. | |||
The majority of the Company’s short-term investments are in U.S. Treasury securities and the Company has the ability and intent to hold these investments to maturity. Therefore, these short-term investments are classified and accounted for as held-to-maturity and are reported at amortized cost. Each reporting period, the Company determines whether a decline in fair value below the amortized cost for each individual security is other-than-temporary and if it would be required to sell the security before recovery of its amortized cost basis. If an other-than-temporary impairment has occurred, the amount representing the credit loss is recorded in “Other (expense) income, net,” and the amount related to all other factors is recognized in “Accumulated other comprehensive loss.” Upon recognition of an other-than-temporary impairment, the previous amortized cost basis less the other-than-temporary impairment recognized in earnings becomes the new amortized cost basis of the investment. | |||
Derivative Financial Instruments | ' | ||
(f) Derivative Financial Instruments | |||
The Company is exposed to certain risks related to its ongoing business operations, including the effect of changes in foreign exchange rates on the Company’s monetary assets and liabilities denominated in foreign currency. The Company uses foreign currency forward contracts as part of its strategy to manage these risks, but does not hold or issue derivative instruments for trading purposes or speculation. We execute these instruments with financial institutions that hold an investment grade credit rating. These foreign currency forward contracts do not meet the requirements for hedge accounting and are recorded on the balance sheet as either an asset or liability measured at their fair value as of the reporting date. Changes in the fair value of derivative instruments, as measured using the three-level hierarchy described above, are recognized in “Other (expense) income, net” in the Company’s Consolidated Statements of Operations. | |||
Property and Equipment | ' | ||
(g) Property and Equipment | |||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: three years for computer equipment and purchased software, five years for office equipment and automobiles, and ten years for office furniture and owned corporate aircraft, which has an estimated salvage value of 70%. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the term of the lease, whichever is shorter. The Company periodically evaluates the appropriateness of the estimated useful lives and salvage value of all property and equipment. Any change in the estimated useful life or salvage value is treated as a change in estimate and accounted for prospectively in the period of change. | |||
Expenditures for maintenance and repairs are charged to expense as incurred, except for certain costs related to the aircraft. The costs of normal, recurring, or periodic repairs and maintenance activities related to the aircraft are expensed as incurred. The cost of planned major maintenance activities (“PMMA”) may be treated differently because those activities may involve the acquisition of additional aircraft components or the replacement of existing aircraft components. PMMA are performed periodically based on passage of time and the use of the aircraft. The classification of a maintenance activity as part of PMMA requires judgment and can affect the amount of expense recognized in any particular period. The cost of each PMMA is expected to be capitalized and amortized over the period until the next scheduled PMMA. The costs of the repairs associated with the Company’s owned aircraft, which was returned to service in the second quarter of 2012, did not constitute PMMA. There have been no PMMA to date. | |||
When assets are retired or sold, the capitalized cost and related accumulated depreciation are removed from the property and equipment accounts and any resulting gain or loss is recognized in the results of operations. | |||
Eligible internal-use software development costs are capitalized subsequent to the completion of the preliminary project stage. Such costs include external direct material and service costs, employee payroll, and payroll-related costs. After all substantial testing and deployment is completed and the software is ready for its intended use, capitalization ceases and internal-use software development costs are amortized using the straight-line method over the estimated useful life of the software, generally three years. | |||
The Company reviews long-lived assets, including intangible assets, for impairment annually or whenever events or changes in business circumstances indicate that the carrying value of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded value of the asset. If an asset is impaired, the asset is written down by the amount by which the carrying value of the asset exceeds the related fair value of the asset. | |||
Software Development Costs | ' | ||
(h) Software Development Costs | |||
Software development costs are expensed as incurred until technological feasibility has been established, at which time such costs are capitalized until the product is available for general release to customers. Capitalized software development costs include direct labor costs and fringe benefit costs attributed to programmers, software engineers, and quality control and field certifiers working on products after they reach technological feasibility, but before they are generally available to customers for sale. Technological feasibility is considered to be achieved when a product design and working model of the software product have been completed. Capitalized software development costs are typically amortized over the estimated product life of three years, on a straight-line basis. | |||
Capitalized software development costs, net of accumulated amortization, were $10.3 million and $10.4 million as of December 31, 2013 and 2012, respectively. Amortization expense related to software development costs was $5.5 million, $4.8 million, and $7.9 million for the years ended December 31, 2013, 2012, and 2011, respectively, and is included in cost of product licenses and subscription services revenues. During the years ended December 31, 2013, 2012, and 2011, the Company capitalized software development costs of $5.4 million, $8.1 million, and $5.9 million, respectively. The Company analyzes the net realizable value of capitalized software development costs on at least an annual basis and has determined that there is no indication of impairment of the capitalized software development costs as forecasted future sales are adequate to support amortization costs. | |||
Loss Contingencies and Legal Costs | ' | ||
(i) Loss Contingencies and Legal Costs | |||
The Company accrues loss contingencies that are believed to be probable and can be reasonably estimated. As events evolve during the administration and litigation process and additional information becomes known, the Company reassesses its estimates related to loss contingencies. Legal costs are expensed in the period in which the costs are incurred. | |||
Deferred Revenue and Advance Payments | ' | ||
(j) Deferred Revenue and Advance Payments | |||
Deferred revenue and advance payments related to product support, subscription services, and other services result from payments received prior to the performance of services for technical support, subscription, consulting, and education. Deferred revenue and advance payments related to product licenses result primarily from multiple-element arrangements that include future deliverables. Deferred revenue comprises deferred product licenses and subscription services, deferred product support, or other services revenue based on the objective fair value of the multiple elements of the arrangement, except for software licenses for which the Company does not have an objective measure of fair value. The Company offsets its accounts receivable and deferred revenue for any billed and unpaid items included in deferred revenue and advance payments. | |||
As of December 31, 2013, the Company has entered into certain additional agreements that include future minimum commitments by the Company’s customers to purchase products, subscription services, product support, or other services through 2018 totaling approximately $119.7 million. As of December 31, 2012, the future minimum commitments by the Company’s customers to purchase products, subscription services, product support, or other services through 2017 totaled approximately $110.4 million. These future commitments are not included in deferred revenue balances. Revenue relating to such agreements will be recognized during the period in which all revenue recognition criteria are met. The timing and ultimate recognition of any revenue from such customer purchase commitments depend on the customers’ meeting their future purchase commitments and the Company’s ability to meet its associated performance obligations related to those purchase commitments. | |||
Revenue Recognition | ' | ||
(k) Revenue Recognition | |||
The Company recognizes revenue from sales of software licenses to end users upon: | |||
1) | persuasive evidence of an arrangement, as provided by agreements, contracts, purchase orders, or other arrangements, generally executed by both parties; | ||
2) | existence of a fixed or determinable fee; | ||
3) | delivery of the software; and | ||
4) | determination that collection is reasonably assured. | ||
When the fees for software upgrades and enhancements, technical support, consulting, and education are bundled with the license fee, they are unbundled for revenue recognition purposes, using vendor specific objective evidence (“VSOE”) of fair value of the elements. | |||
Product support or post-contract support (“PCS”) revenue is derived from providing technical software support and software updates and upgrades to customers. PCS revenue is recognized ratably over the term of the contract, which in most cases is one year. The Company’s VSOE for PCS, which includes updates, upgrades, and enhancements, is determined based upon the optional stated renewal fee for PCS in the contract, which is the price the customer is required to pay when PCS is renewed. Additionally, the optional stated renewal fee used to establish VSOE for PCS in a software transaction must be above the Company’s minimum substantive VSOE rate for PCS. If a stated renewal rate is considered non-substantive, VSOE of PCS has not been established and the Company recognizes all revenue under the arrangement ratably over the PCS period. A minimum substantive VSOE rate is determined based upon an analysis of historical sales of PCS. For a renewal rate to be non-substantive, the Company believes it must be significantly lower than its minimum VSOE rate. We consider a 10% variance below our minimum VSOE rate to be significant. It is rare for the Company to have an arrangement that includes a renewal rate that is below the minimum VSOE rate. | |||
Revenue from consulting, education, and subscription services is recognized as the services are performed. The Company’s VSOE for services other than PCS is determined based upon an analysis of its historical sales of each element when sold separately from software. | |||
For new offerings of services other than PCS or service offerings that have not had a sufficient history of sales activity, the Company initially establishes VSOE based on the list price as determined by management with the relevant authority. Each service offering has a single list price in each country where sold. | |||
If VSOE exists for all undelivered elements and there is no such evidence of fair value established for delivered elements, the arrangement fee is first allocated to the elements where evidence of fair value has been established and the residual amount is allocated to the delivered elements. If evidence of fair value for any undelivered element of an arrangement does not exist, all revenue from the arrangement is deferred until such time that evidence of fair value exists for undelivered elements or until all elements of the arrangement are delivered, subject to certain limited exceptions. | |||
If an arrangement includes acceptance criteria, revenue is not recognized until the Company can objectively demonstrate that the software or service can meet the acceptance criteria, or the acceptance period lapses, whichever occurs earlier. If a software license arrangement obligates the Company to deliver specified future products or upgrades, revenue is recognized when the specified future product or upgrades are delivered, or when the obligation to deliver specified future products expires, whichever occurs earlier. If a software license arrangement obligates the Company to deliver unspecified future products, then revenue is recognized on a subscription basis, ratably over the term of the contract. | |||
License revenue derived from sales to resellers or original equipment manufacturers (“OEMs”) who purchase the Company’s products for resale is recognized upon sufficient evidence that the products have been sold to the end user, provided all other revenue recognition criteria have been met. The Company’s standard software license and reseller agreements do not include any return rights other than the right to return non-conforming products for repair or replacement under standard product warranties. During the last three fiscal years, the Company has not experienced any product returns related to warranty claims. | |||
The Company generally offers either commercial discounts or referral fees to its channel partners, depending on the nature of services performed. Revenue recognized from transactions with channel partners involved in resale or distribution activities is recorded net of any commercial discounts provided to them. Referral fees paid to channel partners not involved in resale or distribution activities are expensed as cost of revenues and, during the last three fiscal years, were not significant. | |||
The Company’s standard software license agreements do not include any price protection or similar rights. The Company offers price protection to certain government agencies as required by applicable laws and regulations. For example, transactions under the General Services Administration Federal Supply Schedule contract must comply with the Price Reductions clause. In addition, certain government agencies have the right to cancel contracts for “convenience.” During the last three fiscal years, amounts related to price protection or similar rights clauses and contracts cancelled for convenience were not significant. | |||
Amounts collected prior to satisfying the above revenue recognition criteria are included in net deferred revenue and advance payments in the accompanying Consolidated Balance Sheets. | |||
Software revenue recognition requires judgment, including determinations about whether collectibility is reasonably assured, the fee is fixed and determinable, whether a software arrangement includes multiple elements, and if so, whether VSOE exists for those elements. Judgment is also required to assess whether future releases of certain software represent new products or upgrades and enhancements to existing products. | |||
The Company also generates subscription services revenues primarily from MicroStrategy Cloud, a cloud-based analytics PaaS. Subscription services revenues include subscription fees from customers for access to the full breadth of the MicroStrategy Analytics Platform and MicroStrategy Mobile capabilities, database services, and data integration services. Our standard arrangements with customers generally do not provide the customer with the right to take possession of the software supporting the cloud-based application service at any time. As such, these arrangements are considered service contracts and revenue is recognized ratably over the service period of the contract, following completion of the set-up service. Any related set-up service fees are recognized ratably over the longer of the contract period or the estimated average life of the customer relationship. | |||
Our MicroStrategy Cloud subscription services are generally offered as stand-alone arrangements or as part of arrangements that include professional services. If deliverables in a multiple-element arrangement have stand-alone value upon delivery, the Company accounts for each such deliverable separately. The Company has concluded that its subscription services and its professional services each have stand-alone value. When the Company enters into multiple-element arrangements that include subscription services and professional services, the total arrangement consideration is allocated to each of the deliverables based on the relative selling price hierarchy. The Company determines the relative selling price for each deliverable using VSOE of selling price, if available, or its best estimate of selling price (“BESP”), if VSOE is not available. The Company has determined that third-party evidence of selling price (“TPE”) is not a practical alternative due to differences in its services offerings as compared to other companies and the lack of availability of third-party pricing information. For professional services, the Company has established VSOE because a consistent number of standalone sales of this deliverable have been priced within a reasonably narrow range. For subscription services, the Company has not established VSOE because, among other factors, the offering is relatively new and our pricing model continues to evolve. Accordingly, the Company uses BESP to determine the relative selling price of MicroStrategy Cloud subscription services. | |||
The Company determines BESP by reviewing historical transactions and by considering its pricing models and objectives that take into account factors such as gross margin, the size and volume of the transactions, perceived pricing sensitivity, and growth strategies. The determination of BESP is made through consultation with, and approval by, the Company’s management team, taking into consideration the go-to-market strategy. As the Company’s pricing and go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to the determination of VSOE and BESP. | |||
Amounts, upon invoicing, are recorded in accounts receivable and either gross deferred revenue or revenue, depending on whether the applicable revenue recognition criteria have been met. | |||
During 2013, 2012, and 2011, the Company did not generate significant revenues from the MicroStrategy Loyalty Platform or the MicroStrategy Identity Platform. | |||
Advertising Costs | ' | ||
(l) Advertising Costs | |||
Advertising costs include production costs, which are expensed the first time the advertisement takes place, and media placement costs, which are expensed in the month the advertising appears. Total advertising costs were $1.9 million, $4.1 million, and $5.0 million for the years ended December 31, 2013, 2012, and 2011, respectively. As of December 31, 2013 and 2012, the Company had no prepaid advertising costs. | |||
Share-based Compensation | ' | ||
(m) Share-based Compensation | |||
In September 2013, the Board of Directors approved, subject to stockholder approval, the Company’s 2013 Stock Incentive Plan authorizing the grant of an aggregate of 600,000 shares of class A common stock. Under the plan, the Company’s employees, officers, directors, and other eligible participants may be awarded various types of share-based compensation, including options to purchase shares of the Company’s class A common stock. The Company recognizes share-based compensation expense associated with such stock option awards on a straight-line basis over the award’s requisite service period. The share-based compensation expense is based on the fair value of such awards on the date of grant, as estimated using the Black-Scholes option pricing model. See Note 12, Share-based Compensation, to the Consolidated Financial Statements for further information regarding the Company’s 2013 Stock Incentive Plan, related share-based compensation expense, and assumptions used in the Black-Scholes option pricing model. | |||
Income Taxes | ' | ||
(n) Income Taxes | |||
The Company is subject to federal, state, and local income taxes in the United States and many foreign countries. Deferred income taxes are provided based upon enacted tax laws and rates applicable to the periods in which the taxes become payable. For uncertain income tax positions, the Company uses a more-likely-than-not recognition threshold based on the technical merits of the income tax position taken. Income tax positions that meet the more-likely-than-not recognition threshold are measured in order to determine the tax benefit recognized in the financial statements. The Company recognizes accrued interest related to unrecognized tax benefits as part of income tax expense. Penalties, if incurred, are recognized as a component of income tax expense. | |||
The Company provides a valuation allowance to reduce deferred tax assets to their estimated realizable value, when appropriate. | |||
Basic and Diluted Earnings Per Share | ' | ||
(o) Basic and Diluted Earnings Per Share | |||
Basic earnings per share is determined by dividing the net income attributable to common stockholders by the weighted average number of common shares and participating securities outstanding during the period. Participating securities are included in the basic earnings per share calculation when dilutive. Diluted earnings per share is determined by dividing the net income attributable to common stockholders by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares are included in the diluted earnings per share calculation when dilutive. Potential common shares consisting of common stock issuable upon exercise of outstanding employee stock options and warrants are computed using the treasury stock method. Potential common shares also consist of common stock issuable upon the conversion of preferred stock. | |||
The Company has two classes of common stock: class A common stock and class B common stock. Holders of class A common stock generally have the same rights, including rights to dividends, as holders of class B common stock, except that holders of class A common stock have one vote per share while holders of class B common stock have ten votes per share. Each share of class B common stock is convertible at any time, at the option of the holder, into one share of class A common stock. As such, basic and fully diluted earnings per share for class A and class B common stock are the same. The Company has never declared or paid any cash dividends on either class A or class B common stock. As of December 31, 2013 and 2012, there were no shares of preferred stock outstanding. | |||
Foreign Currency Translation | ' | ||
(p) Foreign Currency Translation | |||
The functional currency of the Company’s international operations is the local currency. Accordingly, all assets and liabilities of international subsidiaries are translated using exchange rates in effect at the end of the period and revenue and expenses are translated using weighted average exchange rates for the period. The related translation adjustments are reported in accumulated other comprehensive income (loss) in stockholders’ equity. Transaction gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included in the results of operations. | |||
Transaction gains and losses arising from transactions denominated in foreign currencies resulted in net losses of $3.3 million and $2.0 million in 2013 and 2012, respectively, and a net gain of $0.4 million in 2011, and are included in “Other (expense) income, net” in the accompanying Consolidated Statements of Operations. | |||
As of December 31, 2013, 2012, and 2011, the cumulative foreign currency translation balances were $(0.8) million, $(1.5) million, and $(2.0) million, respectively. | |||
Concentrations of Credit Risk | ' | ||
(q) Concentrations of Credit Risk | |||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, foreign currency forward contracts, and accounts receivable. The Company places its cash equivalents and enters into foreign currency forward contracts with high credit-quality financial institutions and invests its excess cash primarily in short-term investments. The Company has established guidelines relative to credit ratings and maturities that seek to maintain safety and liquidity. | |||
The Company sells products and services to various companies across several industries throughout the world in the ordinary course of business. The Company routinely assesses the financial strength of its customers and maintains allowances for anticipated losses. As of December 31, 2013 and 2012, no individual customer accounted for 10% or more of net accounts receivable and for the years ended December 31, 2013, 2012, and 2011, no individual customer accounted for 10% or more of revenue. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis by Level within Fair Value Hierarchy | ' | ||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, consisted of the following (in thousands), as of: | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||
Using Input Types | |||||||||||||||||||
Line Item | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Non-hedging derivative assets: | |||||||||||||||||||
Foreign currency forward contracts | Prepaid expenses and other current assets | $ | 0 | $ | 5 | $ | 0 | $ | 5 | ||||||||||
Non-hedging derivative liabilities: | |||||||||||||||||||
Foreign currency forward contracts | Accounts payable and accrued expenses | $ | 0 | $ | 46 | $ | 0 | $ | 46 | ||||||||||
Sale Contracts Consisted in Foreign Currency Forward Contracts Outstanding | ' | ||||||||||||||||||
All foreign currency forward contracts outstanding as of December 31, 2013 were for durations of three months or less and consisted of the following sale contracts (in thousands): | |||||||||||||||||||
Notional Value | Notional Value | Fair Value | |||||||||||||||||
Local Currency | U.S. Dollar | Gain (Loss) | |||||||||||||||||
U.S. Dollar | |||||||||||||||||||
Forward contracts to sell: | |||||||||||||||||||
Australian Dollar | AUD | 1,128 | $ | 1,000 | $ | (2 | ) | ||||||||||||
Brazilian Real | BRL | 3,386 | 1,400 | (4 | ) | ||||||||||||||
British Pound | GBP | 910 | 1,500 | (6 | ) | ||||||||||||||
Canadian Dollar | CAD | 747 | 700 | (1 | ) | ||||||||||||||
Chinese Renminbi | CNY | 10,463 | 1,700 | (12 | ) | ||||||||||||||
Euro | EUR | 3,480 | 4,800 | 1 | |||||||||||||||
Indian Rupee | INR | 19,093 | 300 | (3 | ) | ||||||||||||||
Japanese Yen | JPY | 136,729 | 1,300 | 1 | |||||||||||||||
Korean Won | KRW | 746,802 | 700 | (4 | ) | ||||||||||||||
Mexican Peso | MXN | 3,965 | 300 | (1 | ) | ||||||||||||||
Polish Zloty | PLN | 4,852 | 1,600 | (1 | ) | ||||||||||||||
Russian Rouble | RUB | 6,715 | 200 | (2 | ) | ||||||||||||||
Singapore Dollar | SGD | 509 | 400 | (3 | ) | ||||||||||||||
South African Rand | ZAR | 6,374 | 600 | 2 | |||||||||||||||
Swedish Krona | SEK | 1,650 | 250 | (6 | ) | ||||||||||||||
Swiss Franc | CHF | 266 | 300 | 0 | |||||||||||||||
Turkish New Lira | TRY | 217 | 100 | 1 | |||||||||||||||
United Arab Emirates Dirham | AED | 739 | 200 | (1 | ) | ||||||||||||||
$ | 17,350 | $ | (41 | ) | |||||||||||||||
Changes in Fair Value of Foreign Currency Forward Contracts | ' | ||||||||||||||||||
Changes in the fair value of our foreign currency forward contracts during 2013, 2012, and 2011 were as follows (in thousands): | |||||||||||||||||||
Gains (Losses) on Derivative Instruments Recognized in Income | |||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||
Location | 2013 | 2012 | 2011 | ||||||||||||||||
Non-hedging derivative instruments: | |||||||||||||||||||
Foreign currency forward contracts outstanding | Other (expense) income, net | $ | (41 | ) | $ | 0 | $ | 0 | |||||||||||
Foreign currency forward contracts settled | Other (expense) income, net | $ | (629 | ) | $ | 0 | $ | 0 |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule Of Accounts Receivable | ' | ||||||||
Accounts receivable (in thousands) consisted of the following, as of: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Billed and billable | $ | 190,446 | $ | 176,511 | |||||
Less: unpaid deferred revenue | (100,276 | ) | (83,107 | ) | |||||
Accounts receivable, gross | 90,170 | 93,404 | |||||||
Less: allowance for doubtful accounts | (3,989 | ) | (4,366 | ) | |||||
Account receivable, net | $ | 86,181 | $ | 89,038 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule Of Property And Equipment | ' | ||||||||
Property and equipment (in thousands) consisted of the following, as of: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Transportation equipment | $ | 48,917 | $ | 48,369 | |||||
Computer equipment and purchased software | 66,713 | 59,916 | |||||||
Furniture and equipment | 11,647 | 11,737 | |||||||
Leasehold improvements | 29,116 | 28,434 | |||||||
Internally developed software | 8,393 | 8,615 | |||||||
Property and equipment, gross | 164,786 | 157,071 | |||||||
Less: accumulated depreciation and amortization | (79,341 | ) | (60,320 | ) | |||||
Property and equipment, net | $ | 85,445 | $ | 96,751 | |||||
Deferred_Revenue_and_Advance_P1
Deferred Revenue and Advance Payments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Revenue and Advance Payments | ' | ||||||||
Deferred revenue and advance payments (in thousands) from customers consisted of the following, as of: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Deferred product licenses revenue | $ | 14,538 | $ | 12,252 | |||||
Deferred subscription services revenue | 10,923 | 7,087 | |||||||
Deferred product support revenue | 167,771 | 145,343 | |||||||
Deferred other services revenue | 17,056 | 15,132 | |||||||
Gross current deferred revenue and advance payments | 210,288 | 179,814 | |||||||
Less: unpaid deferred revenue | (96,632 | ) | (78,565 | ) | |||||
Net current deferred revenue and advance payments | $ | 113,656 | $ | 101,249 | |||||
Non-current: | |||||||||
Deferred product licenses revenue | $ | 4,401 | $ | 3,280 | |||||
Deferred subscription services revenue | 1,161 | 1,028 | |||||||
Deferred product support revenue | 5,877 | 8,205 | |||||||
Deferred other services revenue | 1,175 | 852 | |||||||
Gross non-current deferred revenue and advance payments | 12,614 | 13,365 | |||||||
Less: unpaid deferred revenue | (3,644 | ) | (4,542 | ) | |||||
Net non-current deferred revenue and advance payments | $ | 8,970 | $ | 8,823 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule of Future Minimum Rent Payments Under Noncancellable Operating and Capital Leases | ' | ||||||||
The following table shows future minimum rent payments under noncancellable operating and capital leases and agreements with initial terms of greater than one year, net of total future minimum rent payments to be received under noncancellable sublease agreements (in thousands), based on the expected due dates of the various installments as of December 31, 2013: | |||||||||
Year | Operating Leases | Capital Leases | |||||||
Amount | and Other Financing | ||||||||
Amount | |||||||||
2014 | $ | 25,736 | $ | 2,358 | |||||
2015 | 21,179 | 1,515 | |||||||
2016 | 17,652 | 104 | |||||||
2017 | 15,439 | 0 | |||||||
2018 | 14,881 | 0 | |||||||
Thereafter | 31,353 | 0 | |||||||
$ | 126,240 | $ | 3,977 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule Of Components Of Income From Continuing Operations Before Income Taxes | ' | ||||||||||||
U.S. and international components of income from continuing operations before income taxes (in thousands) were comprised of the following for the periods indicated: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. | $ | (6,158 | ) | $ | 587 | $ | (3,490 | ) | |||||
Foreign | 22,909 | 31,620 | 28,690 | ||||||||||
Total | $ | 16,751 | $ | 32,207 | $ | 25,200 | |||||||
Schedule Of Benefit From Or Provision For Income Taxes From Continuing Operations | ' | ||||||||||||
The benefit from or provision for income taxes from continuing operations (in thousands) consisted of the following for the periods indicated: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | (12,404 | ) | $ | 533 | $ | 1,222 | ||||||
State | 172 | 68 | 91 | ||||||||||
Foreign | 5,994 | 7,269 | 5,344 | ||||||||||
$ | (6,238 | ) | $ | 7,870 | $ | 6,657 | |||||||
Deferred: | |||||||||||||
Federal | $ | (3,417 | ) | $ | 995 | $ | (1,095 | ) | |||||
State | 267 | 1,310 | (305 | ) | |||||||||
Foreign | (411 | ) | (441 | ) | (1,864 | ) | |||||||
$ | (3,561 | ) | $ | 1,864 | $ | (3,264 | ) | ||||||
Total (benefit) provision | $ | (9,799 | ) | $ | 9,734 | $ | 3,393 | ||||||
Schedule Of Effective Income Tax Rate Reconciliation | ' | ||||||||||||
The benefit from or provision for income taxes from continuing operations differs from the amount computed by applying the federal statutory income tax rate to the Company’s income from continuing operations before income taxes as follows for the periods indicated: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax expense at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State taxes, net of federal tax effect | 2 | % | 3 | % | –0.5 | % | |||||||
Foreign earnings taxed at different rates | –18.3 | % | –21.5 | % | –23.6 | % | |||||||
Withholding tax | 9.7 | % | 6.3 | % | 5.4 | % | |||||||
Foreign tax credit | –5.4 | % | –3.4 | % | –2.5 | % | |||||||
Other international components | 3.4 | % | 1.9 | % | 3.8 | % | |||||||
Change in valuation allowance | –0.8 | % | 0.1 | % | –7.1 | % | |||||||
Deferred tax adjustments and rate changes | –2.8 | % | 0.6 | % | –1.4 | % | |||||||
Meals and entertainment | 4.5 | % | 2.9 | % | 4 | % | |||||||
Non-deductible officers compensation | 7.1 | % | 2.1 | % | 2.6 | % | |||||||
Personal use of corporate aircraft | 2.5 | % | 2.6 | % | 2.2 | % | |||||||
Subpart F income | 2.4 | % | 1.2 | % | 1.4 | % | |||||||
Research and development tax credit | –12.6 | % | 0.7 | % | –3.3 | % | |||||||
Other permanent differences | 0.8 | % | 0.6 | % | -0.2 | % | |||||||
Release of unrecognized tax benefits | –86.0 | % | –1.9 | % | –2.3 | % | |||||||
Total | –58.5 | % | 30.2 | % | 13.5 | % | |||||||
Effective Rate For Income From Operations Before Income Taxes | ' | ||||||||||||
The Company’s U.S. and foreign effective tax rates for income from continuing operations before income taxes were as follows for the periods indicated: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. | 249.7 | % | 495.1 | % | 2.5 | % | |||||||
Foreign | 24.4 | % | 21.6 | % | 12.1 | % | |||||||
Combined | –58.5 | % | 30.2 | % | 13.5 | % | |||||||
Schedule Of Components Of Company's Deferred Tax Assets And Liabilities | ' | ||||||||||||
Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows for the periods indicated: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets, net: | |||||||||||||
Net operating loss carryforwards | $ | 981 | $ | 5,439 | |||||||||
Tax credits | 8,723 | 9,474 | |||||||||||
Intangible assets | 1,317 | 2,624 | |||||||||||
Deferred revenue adjustment | 2,746 | 2,858 | |||||||||||
Accrued compensation | 17,465 | 15,684 | |||||||||||
Deferred rent | 3,709 | 4,692 | |||||||||||
Other | 2,911 | 3,523 | |||||||||||
37,852 | 44,294 | ||||||||||||
Valuation allowance | (77 | ) | (231 | ) | |||||||||
Deferred tax assets, net of valuation allowance | 37,775 | 44,063 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Prepaid expenses and other | 1,084 | 686 | |||||||||||
Property and equipment | 15,751 | 15,992 | |||||||||||
Capitalized software development costs | 3,791 | 3,859 | |||||||||||
Total deferred tax liabilities | 20,626 | 20,537 | |||||||||||
Total net deferred tax asset | $ | 17,149 | $ | 23,526 | |||||||||
Reported as: | |||||||||||||
Current deferred tax assets, net | 21,555 | 26,616 | |||||||||||
Non-current deferred tax assets, net | 3,204 | 3,664 | |||||||||||
Current deferred tax liabilities | (422 | ) | (523 | ) | |||||||||
Non-current deferred tax liabilities | (7,188 | ) | (6,231 | ) | |||||||||
Total net deferred tax asset | 17,149 | $ | 23,526 | ||||||||||
Schedule Of Change In Unrecognized Tax Benefits | ' | ||||||||||||
The change in unrecognized tax benefits (in thousands), net of interest and penalties, is presented in the table below: | |||||||||||||
Unrecognized tax benefits at January 1, 2013 | $ | 16,095 | |||||||||||
Decrease related to positions taken in prior period | (157 | ) | |||||||||||
Increase related to positions taken in current period | 372 | ||||||||||||
Decrease related to settlement with tax authorities | (1,327 | ) | |||||||||||
Decrease related to expiration of statute of limitations | (12,671 | ) | |||||||||||
Unrecognized tax benefits at December 31, 2013 | $ | 2,312 | |||||||||||
Sharebased_Compensation_Tables
Share-based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The following table summarizes the Company’s stock option activity (in thousands, except per share data and years) for the periods indicated: | |||||||||||||||||
Stock Options Outstanding | |||||||||||||||||
Shares | Weighted Average | Aggregate | Weighted Average | ||||||||||||||
Exercise Price | Intrinsic | Remaining Contractual | |||||||||||||||
Per Share | Value | Term (Years) | |||||||||||||||
Balance as of January 1, 2011 | 673 | $ | 22.42 | ||||||||||||||
Granted | 0 | 0 | |||||||||||||||
Exercised | (143 | ) | 17.47 | $ | 13,682 | ||||||||||||
Forfeited/Expired | (13 | ) | 155.77 | ||||||||||||||
Balance as of December 31, 2011 | 517 | $ | 20.31 | ||||||||||||||
Granted | 0 | 0 | |||||||||||||||
Exercised | (501 | ) | 20.3 | $ | 51,564 | ||||||||||||
Forfeited/Expired | 0 | 0 | |||||||||||||||
Balance as of December 31, 2012 | 16 | $ | 20.81 | ||||||||||||||
Granted | 600 | 92.84 | |||||||||||||||
Exercised | (16 | ) | 20.81 | $ | 1,262 | ||||||||||||
Forfeited/Expired | 0 | 0 | |||||||||||||||
Balance as of December 31, 2013 | 600 | $ | 92.84 | ||||||||||||||
Exercisable as of December 31, 2013 | 0 | $ | 0 | $ | 0 | 0 | |||||||||||
Expected to vest as of December 31, 2013 | 600 | $ | 92.84 | $ | 18,582 | 9.7 | |||||||||||
Total | 600 | $ | 92.84 | $ | 18,582 | 9.7 | |||||||||||
Assumptions Used in Black-Scholes Option-Pricing Model | ' | ||||||||||||||||
The weighted average grant date fair value of stock option awards using the Black-Scholes option pricing model was $42.03 for each share subject to a stock option granted during the year ended December 31, 2013, based on the following assumptions: | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
Expected term of options in years | 6.3 | ||||||||||||||||
Expected volatility | 42.8 | % | |||||||||||||||
Risk-free interest rate | 2.5 | % | |||||||||||||||
Expected dividend yield | 0 | % |
Basic_and_Diluted_Earnings_per1
Basic and Diluted Earnings per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Basic And Diluted Earnings Per Share | ' | ||||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share data) for the periods indicated: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Income (loss) from: | |||||||||||||
Continuing operations, net of tax | $ | 26,550 | $ | 22,473 | $ | 21,807 | |||||||
Discontinued operations, net of tax | 56,782 | (1,927 | ) | (3,867 | ) | ||||||||
Net income | $ | 83,332 | $ | 20,546 | $ | 17,940 | |||||||
Denominator: | |||||||||||||
Weighted average common shares of class A common stock | 9,073 | 8,768 | 8,341 | ||||||||||
Weighted average common shares of class B common stock | 2,227 | 2,227 | 2,378 | ||||||||||
Total weighted average common stock shares outstanding | 11,300 | 10,995 | 10,719 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options | 1 | 179 | 347 | ||||||||||
Adjusted weighted average shares | 11,301 | 11,174 | 11,066 | ||||||||||
Earnings per share: | |||||||||||||
Basic earnings (loss) per share | |||||||||||||
From continuing operations | $ | 2.35 | $ | 2.05 | $ | 2.03 | |||||||
From discontinued operations | 5.02 | (0.18 | ) | (0.36 | ) | ||||||||
Basic earnings per share | $ | 7.37 | $ | 1.87 | $ | 1.67 | |||||||
Diluted earnings (loss) per share: | |||||||||||||
From continuing operations | $ | 2.35 | $ | 2.01 | $ | 1.97 | |||||||
From discontinued operations | 5.02 | (0.17 | ) | (0.35 | ) | ||||||||
Diluted earnings per share | $ | 7.37 | $ | 1.84 | $ | 1.62 | |||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Assets and Liabilities Classified as Held for Sale and Revenues and Pretax Loss Generated in Addition to Pretax Gain on Sale of Discontinued Operations | ' | ||||||||||||
As of December 31, 2012, the associated assets and liabilities of the Angel.com business are classified as held-for-sale and are presented in the following table (in thousands): | |||||||||||||
December 31, 2012 | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 1,350 | |||||||||||
Accounts receivable, net of unpaid deferred revenue of $554 and allowance for doubtful accounts of $347, respectively | 4,720 | ||||||||||||
Prepaid expenses, deposits, and other assets | 738 | ||||||||||||
Property and equipment, net | 3,763 | ||||||||||||
Total assets | $ | 10,571 | |||||||||||
Liabilities: | |||||||||||||
Accounts payable and accrued expenses | $ | 1,587 | |||||||||||
Accrued compensation and employee benefits | 2,364 | ||||||||||||
Gross deferred revenue and advance payments, net of unpaid deferred revenue of $554 | 639 | ||||||||||||
Other liabilities | 99 | ||||||||||||
Total liabilities | $ | 4,689 | |||||||||||
Net assets and liabilities of disposal group | $ | 5,882 | |||||||||||
The following table summarizes the revenues and pre-tax loss generated by the Angel.com business during the years ended December 31, 2013, 2012, and 2011, respectively, in addition to the pre-tax gain on the sale of Angel.com recorded by the Company during the year ended December 31, 2013 (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Angel.com revenues | $ | 6,320 | $ | 28,882 | $ | 24,982 | |||||||
Angel.com pre-tax loss | $ | 986 | $ | 2,976 | $ | 5,900 | |||||||
MicroStrategy pre-tax gain on sale | $ | 94,925 | $ | 0 | $ | 0 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Revenues and Long-Lived Assets, by Geographic Region | ' | ||||||||||||||||
The following table presents total revenues from continuing operations, gross profit from continuing operations, and long-lived assets, excluding long-term deferred tax assets and assets held-for-sale, (in thousands) according to geographic region: | |||||||||||||||||
Geographic regions: | Domestic | EMEA | Other Regions | Consolidated | |||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Total revenues | $ | 343,073 | $ | 169,194 | $ | 63,621 | $ | 575,888 | |||||||||
Gross profit | $ | 261,134 | $ | 123,373 | $ | 52,812 | $ | 437,319 | |||||||||
Year ended December 31, 2012 | |||||||||||||||||
Total revenues | $ | 326,333 | $ | 177,543 | $ | 61,848 | $ | 565,724 | |||||||||
Gross profit | $ | 241,440 | $ | 133,986 | $ | 49,222 | $ | 424,648 | |||||||||
Year ended December 31, 2011 | |||||||||||||||||
Total revenues | $ | 304,407 | $ | 173,961 | $ | 58,800 | $ | 537,168 | |||||||||
Gross profit | $ | 225,687 | $ | 133,852 | $ | 46,931 | $ | 406,470 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Long-lived assets | $ | 89,342 | $ | 7,111 | $ | 5,909 | $ | 102,362 | |||||||||
As of December 31, 2012 | |||||||||||||||||
Long-lived assets | $ | 95,528 | $ | 9,650 | $ | 7,053 | $ | 112,231 |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Selected Quarterly Financial Data | ' | ||||||||||||||||||||
The following tables contain unaudited Statement of Operations information for each quarter of 2013 and 2012. The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. | |||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Year | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Revenues | $ | 130,183 | $ | 137,905 | $ | 141,919 | $ | 165,881 | $ | 575,888 | |||||||||||
Gross profit | $ | 94,282 | $ | 101,459 | $ | 108,666 | $ | 132,912 | $ | 437,319 | |||||||||||
(Loss) income from continuing operations, net of tax | $ | (5,191 | ) | $ | (1,553 | ) | $ | 17,146 | $ | 16,148 | $ | 26,550 | |||||||||
Discontinued operations, net of tax | 56,782 | 0 | 0 | 0 | 56,782 | ||||||||||||||||
Net income | $ | 51,591 | $ | (1,553 | ) | $ | 17,146 | $ | 16,148 | $ | 83,332 | ||||||||||
Earnings (loss) per share:(1) | |||||||||||||||||||||
Basic, from continuing operations | $ | (0.46 | ) | $ | (0.14 | ) | $ | 1.52 | $ | 1.43 | $ | 2.35 | |||||||||
Basic, from discontinued operations | 5.03 | 0 | 0 | 0 | 5.02 | ||||||||||||||||
Basic earnings (loss) per share | $ | 4.57 | $ | (0.14 | ) | $ | 1.52 | $ | 1.43 | $ | 7.37 | ||||||||||
Diluted, from continuing operations | $ | (0.46 | ) | $ | (0.14 | ) | $ | 1.52 | $ | 1.43 | $ | 2.35 | |||||||||
Diluted, from discontinued operations | 5.03 | 0 | 0 | 0 | 5.02 | ||||||||||||||||
Diluted earnings (loss) per share | $ | 4.57 | $ | (0.14 | ) | $ | 1.52 | $ | 1.43 | $ | 7.37 | ||||||||||
Quarter Ended | |||||||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | Year | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||
2012 | |||||||||||||||||||||
Revenues | $ | 138,334 | $ | 135,324 | $ | 136,080 | $ | 155,986 | $ | 565,724 | |||||||||||
Gross profit | $ | 102,604 | $ | 101,264 | $ | 101,233 | $ | 119,547 | $ | 424,648 | |||||||||||
Income from continuing operations, net of tax | $ | 1,061 | $ | 7,928 | $ | 5,134 | $ | 8,350 | $ | 22,473 | |||||||||||
Discontinued operations, net of tax | (789 | ) | (657 | ) | (371 | ) | (110 | ) | (1,927 | ) | |||||||||||
Net income | $ | 272 | $ | 7,271 | $ | 4,763 | $ | 8,240 | $ | 20,546 | |||||||||||
Earnings (loss) per share:(1) | |||||||||||||||||||||
Basic, from continuing operations | $ | 0.1 | $ | 0.73 | $ | 0.46 | $ | 0.74 | $ | 2.05 | |||||||||||
Basic, from discontinued operations | (0.07 | ) | (0.06 | ) | (0.03 | ) | (0.01 | ) | (0.18 | ) | |||||||||||
Basic earnings per share | $ | 0.03 | $ | 0.67 | $ | 0.43 | $ | 0.73 | $ | 1.87 | |||||||||||
Diluted, from continuing operations | $ | 0.09 | $ | 0.71 | $ | 0.46 | $ | 0.74 | $ | 2.01 | |||||||||||
Diluted, from discontinued operations | (0.07 | ) | (0.06 | ) | (0.03 | ) | (0.01 | ) | (0.17 | ) | |||||||||||
Diluted earnings per share | $ | 0.02 | $ | 0.65 | $ | 0.43 | $ | 0.73 | $ | 1.84 | |||||||||||
(1) | The sum of the basic and diluted earnings (loss) per share for the four quarters may differ from annual earnings (loss) per share as the weighted-average shares outstanding are computed independently for each of the quarters presented. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Class A | Class A | Class B | Class B | 2013 Plan | Computer Equipment And Purchased Software | Office Equipment And Automobiles | Office Furniture And Corporate Aircraft | ||||
Class A | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful lives of assets, years | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years | '10 years |
Estimated salvage value | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized software development costs, net of accumulated amortization | $10,295,000 | $10,360,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized computer software, amortization | 5,500,000 | 4,800,000 | 7,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Additions to capitalized software development costs | 5,400,000 | 8,100,000 | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term purchase commitment amount | 119,700,000 | 110,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variance below minimum VSOE rate | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs | 1,900,000 | 4,100,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation, stock authorized | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' |
Common stock, voting rights, per share | ' | ' | ' | 'One | 'One | 'Ten | 'Ten | ' | ' | ' | ' |
Common stock, conversion ratio | 'One | 'One | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction gains (losses) arising from transactions denominated in foreign currencies | -3,300,000 | -2,000,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative foreign currency translation amount | ($800,000) | ($1,500,000) | ($2,000,000) | ' | ' | ' | ' | ' | ' | ' | ' |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis by Level within Fair Value Hierarchy (Detail) (Foreign currency forward contracts, Non-hedging derivative, USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Prepaid expenses and other current assets | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Derivative assets | $5 |
Accounts payable and accrued expenses | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Derivative liabilities | 46 |
Level 1 | Prepaid expenses and other current assets | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Derivative assets | 0 |
Level 1 | Accounts payable and accrued expenses | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Derivative liabilities | 0 |
Level 2 | Prepaid expenses and other current assets | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Derivative assets | 5 |
Level 2 | Accounts payable and accrued expenses | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Derivative liabilities | 46 |
Level 3 | Prepaid expenses and other current assets | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Derivative assets | 0 |
Level 3 | Accounts payable and accrued expenses | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' |
Derivative liabilities | $0 |
Sale_Contracts_Consisted_in_Fo
Sale Contracts Consisted in Foreign Currency Forward Contracts Outstanding (Detail) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | Australia, Dollars | Australia, Dollars | Brazil, Brazil Real | Brazil, Brazil Real | United Kingdom, Pounds | United Kingdom, Pounds | Canada, Dollars | Canada, Dollars | China, Yuan Renminbi | China, Yuan Renminbi | Euro Member Countries, Euro | Euro Member Countries, Euro | India, Rupees | India, Rupees | Japan, Yen | Japan, Yen | Korea (South), Won | Korea (South), Won | Mexico, Pesos | Mexico, Pesos | Poland, Zlotych | Poland, Zlotych | Russia, Rubles | Russia, Rubles | Singapore, Dollars | Singapore, Dollars | South Africa, Rand | South Africa, Rand | Sweden, Kronor | Sweden, Kronor | Switzerland, Francs | Switzerland, Francs | Turkey, New Lira | Turkey, New Lira | United Arab Emirates, Dirhams | United Arab Emirates, Dirhams | |
USD ($) | AUD | USD ($) | BRL | USD ($) | GBP (£) | USD ($) | CAD | USD ($) | CNY | USD ($) | EUR (€) | USD ($) | INR | USD ($) | JPY (¥) | USD ($) | KRW | USD ($) | MXN | USD ($) | PLN | USD ($) | RUB | USD ($) | SGD | USD ($) | ZAR | USD ($) | SEK | USD ($) | CHF | USD ($) | TRY | USD ($) | AED | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Value | $17,350 | $1,000 | 1,128 | $1,400 | 3,386 | $1,500 | £ 910 | $700 | 747 | $1,700 | 10,463 | $4,800 | € 3,480 | $300 | 19,093 | $1,300 | ¥ 136,729 | $700 | 746,802 | $300 | 3,965 | $1,600 | 4,852 | $200 | 6,715 | $400 | 509 | $600 | 6,374 | $250 | 1,650 | $300 | 266 | $100 | 217 | $200 | 739 |
Fair Value Gain (Loss) | ($41) | ($2) | ' | ($4) | ' | ($6) | ' | ($1) | ' | ($12) | ' | $1 | ' | ($3) | ' | $1 | ' | ($4) | ' | ($1) | ' | ($1) | ' | ($2) | ' | ($3) | ' | $2 | ' | ($6) | ' | $0 | ' | $1 | ' | ($1) | ' |
Changes_in_Fair_Value_of_Forei
Changes in Fair Value of Foreign Currency Forward Contracts (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | ||
Non-hedging derivative | Non-hedging derivative | Non-hedging derivative | Non-hedging derivative | Non-hedging derivative | Non-hedging derivative | ||
Other (expense) income, net | Other (expense) income, net | Other (expense) income, net | Other (expense) income, net | Other (expense) income, net | Other (expense) income, net | ||
Outstanding Contracts | Outstanding Contracts | Outstanding Contracts | Settled Contracts | Settled Contracts | Settled Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) recognized in income on derivatives | ($41) | ($41) | $0 | $0 | ($629) | $0 | $0 |
Short_Term_Investments_Additio
Short Term Investments - Additional Information (Detail) (US Treasury Securities, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Investment [Line Items] | ' |
Held to maturity securities, amortized cost | 137.2 |
Held to maturity securities, carrying value | 137.2 |
Held to maturity securities, fair value | 137.2 |
Minimum | ' |
Investment [Line Items] | ' |
Held to maturity securities maturity range | '3 months |
Maximum | ' |
Investment [Line Items] | ' |
Held to maturity securities maturity range | '1 year |
Accounts_Receivable_Detail
Accounts Receivable (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Billed and billable | $190,446 | $176,511 |
Less: unpaid deferred revenue | -100,276 | -83,107 |
Accounts receivable, gross | 90,170 | 93,404 |
Less: allowance for doubtful accounts | -3,989 | -4,366 |
Account receivable, net | $86,181 | $89,038 |
Components_of_Property_and_Equ
Components of Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $164,786 | $157,071 |
Less: accumulated depreciation and amortization | -79,341 | -60,320 |
Property and equipment, net | 85,445 | 96,751 |
Transportation Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 48,917 | 48,369 |
Computer Equipment And Purchased Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 66,713 | 59,916 |
Furniture and Fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 11,647 | 11,737 |
Leaseholds and Leasehold Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 29,116 | 28,434 |
Software Development | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $8,393 | $8,615 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, net | $85,445,000 | $96,751,000 | ' |
Accumulated depreciation | 79,341,000 | 60,320,000 | ' |
Property and equipment, gross | 164,786,000 | 157,071,000 | ' |
Depreciation and amortization | 21,000,000 | 17,700,000 | 9,400,000 |
Aircraft And Aircraft-Related Equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, net | 43,000,000 | 44,000,000 | ' |
Accumulated depreciation | 5,600,000 | 4,100,000 | ' |
Computer Equipment And Purchased Software | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 66,713,000 | 59,916,000 | ' |
Computer Equipment And Purchased Software | Assets Held under Capital Leases | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Accumulated depreciation | 1,700,000 | 700,000 | ' |
Property and equipment, gross | $2,900,000 | $2,500,000 | ' |
Deferred_Revenue_and_Advance_P2
Deferred Revenue and Advance Payments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Deferred product licenses revenue, Current | $14,538 | $12,252 |
Deferred subscription services revenue, Current | 10,923 | 7,087 |
Deferred product support revenue, Current | 167,771 | 145,343 |
Deferred other services revenue, Current | 17,056 | 15,132 |
Gross current deferred revenue and advance payments | 210,288 | 179,814 |
Less: unpaid deferred revenue | -96,632 | -78,565 |
Net current deferred revenue and advance payments | 113,656 | 101,249 |
Deferred product licenses revenue, Non-current | 4,401 | 3,280 |
Deferred subscription services revenue, Non-current | 1,161 | 1,028 |
Deferred product support revenue, Non-current | 5,877 | 8,205 |
Deferred other services revenue, Non-current | 1,175 | 852 |
Gross non-current deferred revenue and advance payments | 12,614 | 13,365 |
Less: unpaid deferred revenue | -3,644 | -4,542 |
Net non-current deferred revenue and advance payments | $8,970 | $8,823 |
Cost_Method_Investment_Additio
Cost Method Investment - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2000 |
Schedule of Cost-method Investments [Line Items] | ' | ' |
Cost Method Investment, Shares acquired | ' | 1.7 |
Cost Method Investment, Percent of interest acquired | ' | 5.00% |
Proceeds from sale of equity interest | $3.40 | ' |
Sanju K. Bansal | ' | ' |
Schedule of Cost-method Investments [Line Items] | ' | ' |
Percentage of equity interest held by third party | 10.00% | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2010 | Jul. 31, 2011 |
Northern Virginia Office Space | Northern Virginia Office Space | Northern Virginia Office Space | Fractional Interest Program Operator | ||||
sqft | |||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Office space available for lease under the agreement | ' | ' | ' | ' | ' | 190,000 | ' |
Lease expiration date | ' | ' | ' | 31-Dec-20 | ' | ' | ' |
Deferred rent included in other long-term liabilities | ' | ' | ' | $20.10 | $22.70 | ' | ' |
Deferred rent included in current accrued expenses | ' | ' | ' | 2.8 | 2.5 | ' | ' |
Percentage of fractional lease interest | ' | ' | ' | ' | ' | ' | 37.50% |
Total rental expenses under operating lease agreements | $28.30 | $26.40 | $25.30 | ' | ' | ' | ' |
Future_Minimum_Rent_Payments_U
Future Minimum Rent Payments Under Noncancellable Operating and Capital Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases Future Minimum Payments [Line Items] | ' |
2014 | $25,736 |
2015 | 21,179 |
2016 | 17,652 |
2017 | 15,439 |
2018 | 14,881 |
Thereafter | 31,353 |
Total future minimum rent payments under noncancellable operating lease agreements | 126,240 |
2014 | 2,358 |
2015 | 1,515 |
2016 | 104 |
2017 | 0 |
2018 | 0 |
Thereafter | 0 |
Total future minimum rent payments under noncancellable capital lease agreements | $3,977 |
Components_of_Income_from_Cont
Components of Income from Continuing Operations Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | ' | ' | ' |
U.S. | ($6,158) | $587 | ($3,490) |
Foreign | 22,909 | 31,620 | 28,690 |
Income from continuing operations before income taxes | $16,751 | $32,207 | $25,200 |
Benefit_from_or_Provision_for_
Benefit from or Provision for Income Taxes from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components Of Income Tax Expense Benefit [Line Items] | ' | ' | ' |
Federal, Current | ($12,404) | $533 | $1,222 |
State, Current | 172 | 68 | 91 |
Foreign, Current | 5,994 | 7,269 | 5,344 |
Income tax expense (benefit), Current, total | -6,238 | 7,870 | 6,657 |
Federal, Deferred | -3,417 | 995 | -1,095 |
State, Deferred | 267 | 1,310 | -305 |
Foreign, Deferred | -411 | -441 | -1,864 |
Income tax expense (benefit), Deferred, total | -3,561 | 1,864 | -3,264 |
Total (benefit) provision | ($9,799) | $9,734 | $3,393 |
Reconciliation_of_Effective_In
Reconciliation of Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Effective Tax Rates Line Items | ' | ' | ' |
Income tax expense at federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal tax effect | 2.00% | 3.00% | -0.50% |
Foreign earnings taxed at different rates | -18.30% | -21.50% | -23.60% |
Withholding tax | 9.70% | 6.30% | 5.40% |
Foreign tax credit | -5.40% | -3.40% | -2.50% |
Other international components | 3.40% | 1.90% | 3.80% |
Change in valuation allowance | -0.80% | 0.10% | -7.10% |
Deferred tax adjustments and rate changes | -2.80% | 0.60% | -1.40% |
Meals and entertainment | 4.50% | 2.90% | 4.00% |
Other tax credits | 2.50% | 2.60% | 2.20% |
Subpart F income | 2.40% | 1.20% | 1.40% |
Research and development tax credit | -12.60% | 0.70% | -3.30% |
Other permanent differences | 0.80% | 0.60% | -0.20% |
Release of unrecognized tax benefits | -86.00% | -1.90% | -2.30% |
Total | -58.50% | 30.20% | 13.50% |
Non-deductible Officers Compensation | ' | ' | ' |
Schedule Of Effective Tax Rates Line Items | ' | ' | ' |
Other tax credits | 7.10% | 2.10% | 2.60% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes | ' | ' | ' |
Research and development tax credit | -12.60% | 0.70% | -3.30% |
Previously taxed foreign income, repatriated | $1,000,000 | $2,500,000 | ' |
Undistributed foreign earnings | 192,700,000 | ' | ' |
U.S. statutory rate | 35.00% | 35.00% | 35.00% |
U.S. deferred tax asset | ' | 23,400,000 | ' |
U.S. deferred assets, net operating loss carryforwards | ' | 60,100,000 | ' |
Unrecognized tax benefits, gross | 2,600,000 | ' | ' |
Unrecognized tax benefits would impact the effective tax rate | 2,100,000 | ' | ' |
Unrecognized tax benefits accrued interest released during a period | 1,300,000 | ' | ' |
Interest expense related to unrecognized tax benefits | 200,000 | 300,000 | 500,000 |
Interest accrued | 300,000 | 1,200,000 | ' |
Tax credit carryforward, expiration date | '2016 | ' | ' |
Tax credit carryforward tax assets | 8,700,000 | 9,500,000 | ' |
Valuation allowances | 77,000 | 231,000 | ' |
Federal | ' | ' | ' |
Income Taxes | ' | ' | ' |
Cash and cash equivalents and short-term investments | 160,500,000 | 39,300,000 | ' |
Operating loss carryforwards | 0 | 71,200,000 | ' |
Foreign | ' | ' | ' |
Income Taxes | ' | ' | ' |
Cash and cash equivalents and short-term investments | 196,900,000 | 183,800,000 | ' |
Operating loss carryforwards | $4,400,000 | $3,600,000 | ' |
Effective_Rate_for_Income_from
Effective Rate for Income from Operations Before Income Taxes (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Effective Tax Rates Line Items | ' | ' | ' |
Effective tax rates | -58.50% | 30.20% | 13.50% |
U.S. | ' | ' | ' |
Schedule Of Effective Tax Rates Line Items | ' | ' | ' |
Effective tax rates | 249.70% | 495.10% | 2.50% |
Foreign | ' | ' | ' |
Schedule Of Effective Tax Rates Line Items | ' | ' | ' |
Effective tax rates | 24.40% | 21.60% | 12.10% |
Components_of_Deferred_Tax_Ass
Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components Of Deferred Tax Assets And Liabilities [Line Items] | ' | ' |
Deferred tax assets, Net operating loss carryforwards | $981 | $5,439 |
Deferred tax assets, Tax credits | 8,723 | 9,474 |
Deferred tax assets, Intangible assets | 1,317 | 2,624 |
Deferred tax assets, Deferred revenue adjustment | 2,746 | 2,858 |
Deferred tax assets, Accrued Compensation | 17,465 | 15,684 |
Deferred tax assets, Deferred rent | 3,709 | 4,692 |
Deferred tax assets, Other | 2,911 | 3,523 |
Deferred tax assets, gross, Total | 37,852 | 44,294 |
Deferred tax assets, Valuation allowance | -77 | -231 |
Deferred tax assets, net of valuation allowance | 37,775 | 44,063 |
Deferred tax liabilities, Prepaid expenses and other | 1,084 | 686 |
Deferred tax liabilities, Property and equipment | 15,751 | 15,992 |
Deferred tax liabilities, Capitalized software development costs | 3,791 | 3,859 |
Total deferred tax liabilities | 20,626 | 20,537 |
Total net deferred tax asset | 17,149 | 23,526 |
Current deferred tax assets, net | 21,555 | 26,616 |
Non-current deferred tax assets, net | 3,204 | 3,664 |
Current deferred tax liabilities | -422 | -523 |
Non-current deferred tax liabilities | -7,188 | -6,231 |
Total net deferred tax asset | $17,149 | $23,526 |
Schedule_Of_Changes_In_Unrecog
Schedule Of Changes In Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Schedule of Unrecognized Tax Benefits [Line Items] | ' |
Unrecognized tax benefits at January 1, 2013 | $16,095 |
Decrease related to positions taken in prior period | -157 |
Increase related to positions taken in current period | 372 |
Decrease related to settlement with tax authorities | -1,327 |
Decrease related to expiration of statute of limitations | -12,671 |
Unrecognized tax benefits at December 31, 2013 | $2,312 |
Share_Based_Compensation_Addit
Share Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 30, 2013 |
Angel.Com | 2013 Plan | ||||
Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Share-based compensation, stock authorized | ' | ' | ' | ' | 600,000 |
Stock incentive plan expiration period | ' | ' | ' | ' | '10 years |
Share-based compensation award expiration period | ' | ' | ' | ' | '10 years |
Expected dividend yield | 0.00% | ' | ' | ' | ' |
Stock option awards granted | 600,000 | 0 | 0 | ' | 600,000 |
Stock option awards, vesting period | ' | ' | ' | ' | '4 years |
Weighted average grant date fair value of stock option awards | $42.03 | ' | ' | ' | ' |
Share-based compensation expense recognized | $2.10 | ' | ' | ' | ' |
Unrecognized share-based compensation expense | 23.1 | ' | ' | ' | ' |
Unrecognized compensation expense expected to be recognized | '3 years 7 months 6 days | ' | ' | ' | ' |
Increase in equity | 23.6 | ' | ' | ' | ' |
Cash payment for termination of incentive plan | ' | ' | ' | $8 | ' |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Options outstanding, shares | ' | ' | ' |
Beginning Balance | 16 | 517 | 673 |
Granted | 600 | 0 | 0 |
Exercised | -16 | -501 | -143 |
Forfeited/Expired | 0 | 0 | -13 |
Ending Balance | 600 | 16 | 517 |
Exercisable as of December 31, 2013 | 0 | ' | ' |
Expected to vest as of December 31, 2013 | 600 | ' | ' |
Total | 600 | ' | ' |
Weighted Average Exercise Price Per Share | ' | ' | ' |
Beginning Balance | $20.81 | $20.31 | $22.42 |
Granted | $92.84 | $0 | $0 |
Exercised | $20.81 | $20.30 | $17.47 |
Forfeited/Expired | $0 | $0 | $155.77 |
Ending Balance | $92.84 | $20.81 | $20.31 |
Exercisable as of December 31, 2013 | $0 | ' | ' |
Expected to vest as of December 31, 2013 | $92.84 | ' | ' |
Total | $92.84 | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Exercised | $1,262 | $51,564 | $13,682 |
Exercisable as of December 31, 2013 | 0 | ' | ' |
Expected to vest as of December 31, 2013 | 18,582 | ' | ' |
Total | $18,582 | ' | ' |
Weighted Average Remaining Contractual Term (Years) | ' | ' | ' |
Exercisable as of December 31, 2013 | '0 years | ' | ' |
Expected to vest as of December 31, 2013 | '9 years 8 months 12 days | ' | ' |
Total | '9 years 8 months 12 days | ' | ' |
Assumptions_Used_in_Determinin
Assumptions Used in Determining Fair Value of Options Granted (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Assumptions Disclosure [ Line Items] | ' |
Expected term of options in years | '6 years 3 months 18 days |
Expected volatility | 42.80% |
Risk-free interest rate | 2.50% |
Expected dividend yield | 0.00% |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings (loss) Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Earnings Loss Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Continuing operations, net of tax | $16,148 | $17,146 | ($1,553) | ($5,191) | $8,350 | $5,134 | $7,928 | $1,061 | $26,550 | $22,473 | $21,807 | |||||||||||
Discontinued operations, net of tax | 0 | 0 | 0 | 56,782 | -110 | -371 | -657 | -789 | 56,782 | -1,927 | -3,867 | |||||||||||
Net income | $16,148 | $17,146 | ($1,553) | $51,591 | $8,240 | $4,763 | $7,271 | $272 | $83,332 | $20,546 | $17,940 | |||||||||||
Total weighted average common stock shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 11,300 | 10,995 | 10,719 | |||||||||||
Employee stock options | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 179 | 347 | |||||||||||
Adjusted weighted average shares | ' | ' | ' | ' | ' | ' | ' | ' | 11,301 | 11,174 | 11,066 | |||||||||||
Basic earnings (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
From continuing operations | $1.43 | [1] | $1.52 | [1] | ($0.14) | [1] | ($0.46) | [1] | $0.74 | [1] | $0.46 | [1] | $0.73 | [1] | $0.10 | [1] | $2.35 | [1],[2] | $2.05 | [1],[2] | $2.03 | [2] |
From discontinued operations | $0 | [1] | $0 | [1] | $0 | [1] | $5.03 | [1] | ($0.01) | [1] | ($0.03) | [1] | ($0.06) | [1] | ($0.07) | [1] | $5.02 | [1],[2] | ($0.18) | [1],[2] | ($0.36) | [2] |
Basic earnings per share | $1.43 | [1] | $1.52 | [1] | ($0.14) | [1] | $4.57 | [1] | $0.73 | [1] | $0.43 | [1] | $0.67 | [1] | $0.03 | [1] | $7.37 | [1],[2] | $1.87 | [1],[2] | $1.67 | [2] |
Diluted earnings (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
From continuing operations | $1.43 | $1.52 | ($0.14) | ($0.46) | $0.74 | $0.46 | $0.71 | $0.09 | $2.35 | [2] | $2.01 | [2] | $1.97 | [2] | ||||||||
From discontinued operations | $0 | $0 | $0 | $5.03 | ($0.01) | ($0.03) | ($0.06) | ($0.07) | $5.02 | [2] | ($0.17) | [2] | ($0.35) | [2] | ||||||||
Diluted earnings per share | $1.43 | $1.52 | ($0.14) | $4.57 | $0.73 | $0.43 | $0.65 | $0.02 | $7.37 | [2] | $1.84 | [2] | $1.62 | [2] | ||||||||
Class A | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Earnings Loss Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Total weighted average common stock shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 9,073 | 8,768 | 8,341 | |||||||||||
Class B | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Earnings Loss Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Total weighted average common stock shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 2,227 | 2,227 | 2,378 | |||||||||||
[1] | The sum of the basic and diluted earnings (loss) per share for the four quarters may differ from annual earnings (loss) per share as the weighted-average shares outstanding are computed independently for each of the quarters presented. | |||||||||||||||||||||
[2] | Basic and fully diluted earnings (loss) per share for class A and class B common stock are the same. |
Basic_and_Diluted_Earnings_per2
Basic and Diluted Earnings per Share - Additional Information (Detail) (Class A, 2013 Plan) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Class A | 2013 Plan | ' | ' | ' |
Computation Of Earnings Per Share Line Items | ' | ' | ' |
Shares issuable under stock options excluded from calculation of diluted earnings per share | 600,000 | 0 | 0 |
Treasury_Stock_Additional_Info
Treasury Stock - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Two Thousand Five Share Repurchase Program | Two Thousand Five Share Repurchase Program | |||
Class A | ||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' |
Stock authorized to repurchase by board of directors | ' | ' | ' | $800,000,000 |
Treasury stock, shares | 6,405,000 | 6,405,000 | ' | 3,826,947 |
Shares repurchased, average price per share | ' | ' | ' | $90.23 |
Treasury stock, cost | $475,184,000 | $475,184,000 | ' | $345,300,000 |
Shares repurchased program expiration date | ' | ' | 29-Apr-18 | ' |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Contribution Plan Disclosure [Line Items] | ' | ' | ' |
Maximum employee contribution to 401k | 50.00% | ' | ' |
Employer match for first 6% contributed by plan participant | 50.00% | ' | ' |
Maximum contribution by participant that employer will match at 50% | 6.00% | ' | ' |
Maximum annual contribution by employer | $3,000 | ' | ' |
Employer contribution to the plan | $2,700,000 | $2,600,000 | $2,600,000 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | |
Angel.Com | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Discontinued operation, cash from sale | ' | ' | ' | $111,200,000 |
Discontinued operation, net cash from sale | ' | ' | ' | 100,700,000 |
Discontinued operation, gain on sale | 57,377,000 | 0 | 0 | 57,400,000 |
Discontinued operation, transaction costs | ' | ' | ' | $10,500,000 |
Assets_and_Liabilities_of_Ange
Assets and Liabilities of Angel Dot Com Business Classified as Held for Sale (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $0 | $1,350 | $5,300 | $1,512 |
Angel.Com | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | ' | 1,350 | ' | ' |
Accounts receivable, net of unpaid deferred revenue of $554 and allowance for doubtful accounts of $347, respectively | ' | 4,720 | ' | ' |
Prepaid expenses, deposits, and other assets | ' | 738 | ' | ' |
Property and equipment, net | ' | 3,763 | ' | ' |
Total assets | ' | 10,571 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Accounts payable and accrued expenses | ' | 1,587 | ' | ' |
Accrued compensation and employee benefits | ' | 2,364 | ' | ' |
Gross deferred revenue and advance payments, net of unpaid deferred revenue of $554 | ' | 639 | ' | ' |
Other liabilities | ' | 99 | ' | ' |
Total liabilities | ' | 4,689 | ' | ' |
Net assets and liabilities of disposal group | ' | $5,882 | ' | ' |
Assets_and_Liabilities_of_Ange1
Assets and Liabilities of Angel Dot Com Business Classified as Held for Sale (Parenthetical) (Detail) (Angel.Com, USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
Angel.Com | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Unpaid Deferred Revenue | $554 |
Allowance for doubtful accounts | 347 |
Unpaid Deferred Revenue | $554 |
Summary_of_Revenues_and_PreTax
Summary of Revenues and Pre-Tax Loss Generated by Angel Dot Com Business In Addition to Pre-Tax Gain on Sale Recorded (Detail) (Angel.Com, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Angel.Com | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Angel.com revenues | $6,320 | $28,882 | $24,982 |
Angel.com pre-tax loss | 986 | 2,976 | 5,900 |
MicroStrategy pre-tax gain on sale | $94,925 | $0 | $0 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Country | Country | Country | |
Segment Reporting Information | ' | ' | ' |
Number of operating segments | 1 | ' | ' |
Geographic Concentration Risk | Sales Revenue, Goods, Net | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Number Of Individual Country accounted for 10% or more of total revenues | 0 | 0 | 0 |
Geographic Concentration Risk | Assets, Total | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Number Of Individual country accounted for 10% or more of total consolidated assets | 0 | 0 | ' |
Customer Concentration Risk | Sales Revenue, Goods, Net | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Number Of Individual Customer accounted for 10% or more of total consolidated revenues | 0 | 0 | 0 |
Total_Revenues_Gross_Profit_an
Total Revenues Gross Profit and Long Lived Assets Excluding Long Term Deferred Tax Assets (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $165,881 | $141,919 | $137,905 | $130,183 | $155,986 | $136,080 | $135,324 | $138,334 | $575,888 | $565,724 | $537,168 |
Gross profit | 132,912 | 108,666 | 101,459 | 94,282 | 119,547 | 101,233 | 101,264 | 102,604 | 437,319 | 424,648 | 406,470 |
Long-lived assets | 102,362 | ' | ' | ' | 112,231 | ' | ' | ' | 102,362 | 112,231 | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 343,073 | 326,333 | 304,407 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 261,134 | 241,440 | 225,687 |
Long-lived assets | 89,342 | ' | ' | ' | 95,528 | ' | ' | ' | 89,342 | 95,528 | ' |
EMEA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 169,194 | 177,543 | 173,961 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 123,373 | 133,986 | 133,852 |
Long-lived assets | 7,111 | ' | ' | ' | 9,650 | ' | ' | ' | 7,111 | 9,650 | ' |
Other Regions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 63,621 | 61,848 | 58,800 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 52,812 | 49,222 | 46,931 |
Long-lived assets | $5,909 | ' | ' | ' | $7,053 | ' | ' | ' | $5,909 | $7,053 | ' |
Statement_of_Operations_Inform
Statement of Operations Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Schedule Of Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Revenues | $165,881 | $141,919 | $137,905 | $130,183 | $155,986 | $136,080 | $135,324 | $138,334 | $575,888 | $565,724 | $537,168 | |||||||||||
Gross profit | 132,912 | 108,666 | 101,459 | 94,282 | 119,547 | 101,233 | 101,264 | 102,604 | 437,319 | 424,648 | 406,470 | |||||||||||
(Loss) income from continuing operations, net of tax | 16,148 | 17,146 | -1,553 | -5,191 | 8,350 | 5,134 | 7,928 | 1,061 | 26,550 | 22,473 | 21,807 | |||||||||||
Discontinued operations, net of tax | 0 | 0 | 0 | 56,782 | -110 | -371 | -657 | -789 | 56,782 | -1,927 | -3,867 | |||||||||||
Net income | $16,148 | $17,146 | ($1,553) | $51,591 | $8,240 | $4,763 | $7,271 | $272 | $83,332 | $20,546 | $17,940 | |||||||||||
Earnings (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Basic, from continuing operations | $1.43 | [1] | $1.52 | [1] | ($0.14) | [1] | ($0.46) | [1] | $0.74 | [1] | $0.46 | [1] | $0.73 | [1] | $0.10 | [1] | $2.35 | [1],[2] | $2.05 | [1],[2] | $2.03 | [2] |
Basic, from discontinued operations | $0 | [1] | $0 | [1] | $0 | [1] | $5.03 | [1] | ($0.01) | [1] | ($0.03) | [1] | ($0.06) | [1] | ($0.07) | [1] | $5.02 | [1],[2] | ($0.18) | [1],[2] | ($0.36) | [2] |
Basic earnings (loss) per share | $1.43 | [1] | $1.52 | [1] | ($0.14) | [1] | $4.57 | [1] | $0.73 | [1] | $0.43 | [1] | $0.67 | [1] | $0.03 | [1] | $7.37 | [1],[2] | $1.87 | [1],[2] | $1.67 | [2] |
Diluted, from continuing operations | $1.43 | $1.52 | ($0.14) | ($0.46) | $0.74 | $0.46 | $0.71 | $0.09 | $2.35 | [2] | $2.01 | [2] | $1.97 | [2] | ||||||||
Diluted, from discontinued operations | $0 | $0 | $0 | $5.03 | ($0.01) | ($0.03) | ($0.06) | ($0.07) | $5.02 | [2] | ($0.17) | [2] | ($0.35) | [2] | ||||||||
Diluted earnings (loss) per share | $1.43 | $1.52 | ($0.14) | $4.57 | $0.73 | $0.43 | $0.65 | $0.02 | $7.37 | [2] | $1.84 | [2] | $1.62 | [2] | ||||||||
[1] | The sum of the basic and diluted earnings (loss) per share for the four quarters may differ from annual earnings (loss) per share as the weighted-average shares outstanding are computed independently for each of the quarters presented. | |||||||||||||||||||||
[2] | Basic and fully diluted earnings (loss) per share for class A and class B common stock are the same. |
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Allowance for Doubtful Accounts | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at the beginning of the period | $4,366 | $5,628 | $4,364 | |||
Additions | 2,281 | [1] | 2,361 | [1] | 1,449 | [1] |
Deduction | -2,658 | -3,623 | -185 | |||
Balance at the end of the period | 3,989 | 4,366 | 5,628 | |||
Valuation Allowance of Deferred Tax Assets | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at the beginning of the period | 231 | 736 | 2,710 | |||
Additions | 77 | [1] | 7 | [1] | 0 | [1] |
Deduction | -231 | -512 | -1,974 | |||
Balance at the end of the period | $77 | $231 | $736 | |||
[1] | Reductions in/charges to revenues and expenses. |