Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 23, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MSTR | |
Entity Registrant Name | MICROSTRATEGY INC | |
Entity Central Index Key | 1,050,446 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,329,603 | |
Class B Convertible | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,035,184 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 201,146 | $ 146,919 |
Restricted cash | 655 | 661 |
Short-term investments | 226,749 | 198,547 |
Accounts receivable, net | 56,038 | 78,633 |
Prepaid expenses and other current assets | 14,389 | 17,669 |
Deferred tax assets, net | 14,472 | 19,936 |
Total current assets | 513,449 | 462,365 |
Property and equipment, net | 72,368 | 77,852 |
Capitalized software development costs, net | 20,303 | 13,469 |
Deposits and other assets | 3,516 | 3,951 |
Deferred tax assets, net | 1,502 | 1,160 |
Total assets | 611,138 | 558,797 |
Current liabilities: | ||
Accounts payable and accrued expenses | 24,582 | 35,458 |
Accrued compensation and employee benefits | 43,142 | 50,588 |
Accrued restructuring costs | 236 | 2,284 |
Deferred revenue and advance payments | 119,773 | 108,413 |
Deferred tax liabilities | 484 | 557 |
Total current liabilities | 188,217 | 197,300 |
Deferred revenue and advance payments | 10,309 | 10,818 |
Other long-term liabilities | 20,855 | 22,679 |
Deferred tax liabilities | 11,066 | 3,529 |
Total liabilities | $ 230,447 | $ 234,326 |
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 | 521,086 | 506,727 |
Treasury stock, at cost; 6,405 shares | (475,184) | (475,184) |
Accumulated other comprehensive loss | (5,429) | (4,363) |
Retained earnings | 340,200 | 297,273 |
Total stockholders' equity | 380,691 | 324,471 |
Total liabilities and stockholders' equity | 611,138 | 558,797 |
Class A | ||
Stockholders' Equity | ||
Common stock | 16 | 16 |
Class B Convertible | ||
Stockholders' Equity | ||
Common stock | $ 2 | $ 2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 6,405,000 | 6,405,000 |
Class A | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 330,000,000 | 330,000,000 |
Common stock, shares issued | 15,734,000 | 15,660,000 |
Common stock, shares outstanding | 9,329,000 | 9,255,000 |
Class B Convertible | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 165,000,000 | 165,000,000 |
Common stock, shares issued | 2,035,000 | 2,055,000 |
Common stock, shares outstanding | 2,035,000 | 2,055,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Revenues: | |||||
Product licenses | $ 29,366 | $ 29,383 | $ 50,123 | $ 57,239 | |
Subscription services | 7,074 | 5,883 | 13,739 | 10,324 | |
Total product licenses and subscription services | 36,440 | 35,266 | 63,862 | 67,563 | |
Product support | 70,747 | 74,569 | 140,052 | 146,050 | |
Other services | 25,753 | 32,018 | 52,897 | 66,144 | |
Total revenues | 132,940 | 141,853 | 256,811 | 279,757 | |
Cost of revenues: | |||||
Product licenses | 1,906 | 2,086 | 3,215 | 3,914 | |
Subscription services | 3,346 | 4,920 | 6,725 | 9,327 | |
Total product licenses and subscription services | 5,252 | 7,006 | 9,940 | 13,241 | |
Product support | 3,224 | 3,475 | 6,560 | 7,018 | |
Other services | 17,436 | 25,132 | 36,510 | 48,363 | |
Total cost of revenues | 25,912 | 35,613 | 53,010 | 68,622 | |
Gross profit | 107,028 | 106,240 | 203,801 | 211,135 | |
Operating expenses: | |||||
Sales and marketing | 36,219 | 60,956 | 72,739 | 119,833 | |
Research and development | 14,864 | 32,748 | 30,262 | 60,810 | |
General and administrative | 21,103 | 25,262 | 43,228 | 51,565 | |
Restructuring costs | 90 | 0 | 175 | 0 | |
Total operating expenses | 72,276 | 118,966 | 146,404 | 232,208 | |
Income (loss) from operations | 34,752 | (12,726) | 57,397 | (21,073) | |
Interest income, net | 11 | 32 | 13 | 80 | |
Other income (expense), net | (2,915) | (474) | 1,835 | (1,592) | |
Income (loss) before income taxes | 31,848 | (13,168) | 59,245 | (22,585) | |
Provision for (benefit from) income taxes | 9,381 | (2,831) | 16,318 | (5,766) | |
Net income (loss) | $ 22,467 | $ (10,337) | $ 42,927 | $ (16,819) | |
Basic earnings (loss) per share | [1] | $ 1.98 | $ (0.91) | $ 3.79 | $ (1.49) |
Weighted average shares outstanding used in computing basic earnings (loss) per share | 11,349 | 11,301 | 11,335 | 11,301 | |
Diluted earnings (loss) per share | [1] | $ 1.95 | $ (0.91) | $ 3.74 | $ (1.49) |
Weighted average shares outstanding used in computing diluted earnings (loss) per share | 11,510 | 11,301 | 11,482 | 11,301 | |
[1] | Basic and fully diluted earnings (loss) per share for class A and class B common stock are the same. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income (loss) | $ 22,467 | $ (10,337) | $ 42,927 | $ (16,819) |
Other comprehensive income (loss), net of applicable taxes: | ||||
Foreign currency translation adjustment | 1,093 | (286) | (1,052) | (83) |
Unrealized (loss) gain on short-term investments | (15) | 10 | (14) | 19 |
Total other comprehensive income (loss) | 1,078 | (276) | (1,066) | (64) |
Comprehensive income (loss) | $ 23,545 | $ (10,613) | $ 41,861 | $ (16,883) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income (loss) | $ 42,927 | $ (16,819) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 10,316 | 13,260 |
Bad debt expense | 461 | 2,033 |
Unrealized net loss on foreign currency forward contracts | 1,641 | 86 |
Non-cash portion of adjustments to accrued restructuring costs | (127) | 0 |
Deferred taxes | 13,308 | (8,924) |
Release of liabilities for unrecognized tax benefits | (61) | 0 |
Share-based compensation expense | 7,957 | 4,682 |
Excess tax benefits from share-based compensation arrangements | (963) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 19,658 | 26,443 |
Prepaid expenses and other current assets | 1,372 | (3,990) |
Deposits and other assets | 292 | 406 |
Accounts payable and accrued expenses | (8,624) | (5,191) |
Accrued compensation and employee benefits | (6,225) | (21,897) |
Accrued restructuring costs | (1,754) | 0 |
Deferred revenue and advance payments | 13,625 | 22,226 |
Other long-term liabilities | (1,770) | 2,055 |
Net cash provided by operating activities | 92,033 | 14,370 |
Investing activities: | ||
Proceeds from redemption of short-term investments | 171,500 | 93,200 |
Purchases of property and equipment | (3,254) | (4,184) |
Purchases of short-term investments | (199,636) | (211,603) |
Capitalized software development costs | (9,598) | 0 |
Increase in restricted cash | (21) | (90) |
Net cash used in investing activities | (41,009) | (122,677) |
Financing activities: | ||
Proceeds from sale of class A common stock under exercise of employee stock options | 5,439 | 0 |
Excess tax benefits from share-based compensation arrangements | 963 | 0 |
Payments on capital lease obligations and other financing arrangements | (216) | (341) |
Net cash provided by (used in) financing activities | 6,186 | (341) |
Effect of foreign exchange rate changes on cash and cash equivalents | (2,983) | 336 |
Net increase (decrease) in cash and cash equivalents | 54,227 | (108,312) |
Cash and cash equivalents, beginning of period | 146,919 | 220,171 |
Cash and cash equivalents, end of period | 201,146 | 111,859 |
Supplemental disclosure of noncash investing and financing activities: | ||
Assets acquired under capital lease obligations and other financing arrangements | $ 14 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies (a) Basis of Presentation Except for the Consolidated Balance Sheet of MicroStrategy Incorporated (“MicroStrategy” or the “Company”) as of December 31, 2014, which was derived from audited financial statements, the accompanying Consolidated Financial Statements are unaudited. In the opinion of management, all adjustments necessary for a fair statement of such financial position and results of operations have been included. All such adjustments are of a normal recurring nature unless otherwise disclosed. Interim results are not necessarily indicative of results for a full year. Certain amounts in the prior year’s Consolidated Financial Statements and Notes to Consolidated Financial Statements have been reclassified to conform to current year presentation. Revenues and cost of revenues have been reclassified in the Consolidated Statements of Operations to reflect the separate components of total product licenses and subscription services, and unrealized gains and losses on foreign currency forward contracts have been reclassified within the operating section in the Consolidated Statements of Cash Flows. The Consolidated Financial Statements and Notes to Consolidated Financial Statements are presented as required by the United States Securities and Exchange Commission (“SEC”) and do not contain certain information included in the Company’s annual financial statements and notes. These financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto filed with the SEC in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. There have been no significant changes in the Company’s accounting policies since December 31, 2014. 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 is not aware of any subsequent event which would require recognition or disclosure. |
Recent Accounting Standards
Recent Accounting Standards | 6 Months Ended |
Jun. 30, 2015 | |
Recent Accounting Standards | (2) Recent Accounting Standards In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) In April 2015, the FASB issued Accounting Standards Update No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements | (3) 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 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. The Company executes 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. As of June 30, 2015, there were no financial assets or liabilities measured at fair value on a recurring basis. As of December 31, 2014, 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): December 31, 2014 Fair Value Measurements Line Item Level 1 Level 2 Level 3 Total Non-hedging derivative assets: Foreign currency forward contracts Prepaid expenses and other current assets $ 0 $ 1,647 $ 0 $ 1,647 Non-hedging derivative liabilities: Foreign currency forward contracts Accounts payable and accrued expenses $ 0 $ 6 $ 0 $ 6 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. Changes in the fair value of our foreign currency forward contracts (in thousands) for the three and six months ended June 30, 2015 and 2014 were as follows: Gain (Loss) on Derivative Instruments Recognized in Income Three Months Ended Six Months Ended June 30, June 30, Location 2015 2014 2015 2014 Non-hedging derivative instruments: Unrealized loss on foreign currency forward contracts Other income (expense), net $ (2,590 ) $ (46 ) $ (1,641 ) $ (86 ) Realized gain (loss) on foreign currency forward contracts Other income (expense), net $ 2,129 $ (307 ) $ 2,129 $ (562 ) The “unrealized loss on foreign currency forward contracts” line item in the above table includes both the unrealized fair value gains and losses on outstanding foreign currency forward contracts and the reversal of previous period unrealized gains and losses upon the settlement of foreign currency forward contracts. There were no foreign currency forward contracts outstanding as of June 30, 2015. There were no transfers among the levels within the fair value hierarchy during each of the three and six months ended June 30, 2015 and 2014. As of June 30, 2015 and December 31, 2014, the Company had no assets or liabilities that were required to be measured at fair value on a non-recurring basis. The Company also estimates the fair value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, accrued compensation and employee benefits, and accrued restructuring costs. The Company considers the carrying value of these instruments in the financial statements to approximate fair value due to their short maturities. |
Short-term Investments
Short-term Investments | 6 Months Ended |
Jun. 30, 2015 | |
Short-term Investments | (4) 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 June 30, 2015 were $226.7 million, $226.7 million, and $226.7 million, respectively. The amortized cost, carrying value, and fair value of held-to-maturity investments at December 31, 2014 were $198.5 million, $198.5 million, and $198.5 million, respectively. The gross unrecognized holding gains and losses were not material for each of the three and six months ended June 30, 2015 and 2014. No other-than-temporary impairments related to these investments have been recognized in accumulated other comprehensive loss as of June 30, 2015 and December 31, 2014. As of June 30, 2015 and December 31, 2014, the Company’s available-for-sale investments were not material. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2015 | |
Accounts Receivable | (5) Accounts Receivable Accounts receivable (in thousands) consisted of the following, as of: June 30, December 31, Billed and billable $ 124,380 $ 187,470 Less: unpaid deferred revenue (64,597 ) (104,425 ) Accounts receivable, gross 59,783 83,045 Less: allowance for doubtful accounts (3,745 ) (4,412 ) Accounts receivable, net $ 56,038 $ 78,633 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. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring | (6) Restructuring In September 2014, the Company committed to a restructuring plan (the “2014 Restructuring Plan”) to streamline its workforce and spending to better align its cost structure with its business strategy, including reducing the Company’s workforce by 777 employees, comprised of 217 employees in North America, 400 employees in Asia Pacific, 141 employees in Europe, the Middle East, and Africa, and 19 employees in Latin America. As of December 31, 2014, the Company had implemented substantially all of the 2014 Restructuring Plan. The Company does not expect future costs associated with implementing the remainder of the 2014 Restructuring Plan, consisting primarily of the liquidation of certain foreign subsidiaries, to be material. Costs associated with the 2014 Restructuring Plan included employee severance and related benefit costs (including outplacement services and continuing health insurance coverage), contract termination costs (including operating lease terminations for certain office space at the Company’s corporate headquarters and other international locations), and other charges (including external consulting and advisory fees related to implementing the restructuring plan). The following table summarizes the major types of costs associated with the 2014 Restructuring Plan (in thousands) for each of the three and six months ended June 30, 2015 and 2014, total costs incurred through June 30, 2015 and total costs expected to be incurred: Three Months Ended Six Months Ended June 30, June 30, Cumulative Costs Total Expected 2015 2014 2015 2014 Incurred To Date Plan Costs Severance and related employee benefits $ 0 $ 0 $ 0 $ 0 $ 13,162 $ 13,162 Contract termination costs 0 0 0 0 1,159 1,159 Other costs 90 0 175 0 586 711 Total restructuring costs $ 90 $ 0 $ 175 $ 0 $ 14,907 $ 15,032 The total restructuring costs above are reported as “Restructuring costs” under “Operating expenses” in the Company’s Consolidated Statements of Operations. Restructuring-related liabilities are reported as “Accrued restructuring costs” in the Company’s Consolidated Balance Sheets. The following table presents a summary of changes in the restructuring-related liabilities (in thousands) for the six months ended June 30, 2015: Balance as of Costs Cash Non-cash Adjustments Balance as of Current: Severance and related employee benefits $ 2,215 $ 0 $ (1,697 ) $ 0 $ (286 ) $ 232 Contract termination costs 0 0 0 0 0 0 Other costs 69 175 (246 ) 0 6 4 Total current accrued restructuring costs $ 2,284 $ 175 $ (1,943 ) $ 0 $ (280 ) $ 236 |
Deferred Revenue and Advance Pa
Deferred Revenue and Advance Payments | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Revenue and Advance Payments | (7) Deferred Revenue and Advance Payments Deferred revenue and advance payments (in thousands) from customers consisted of the following, as of: June 30, December 31, Current: Deferred product licenses revenue $ 12,525 $ 10,927 Deferred subscription services revenue 12,362 16,018 Deferred product support revenue 146,194 168,833 Deferred other services revenue 6,737 10,564 Gross current deferred revenue and advance payments 177,818 206,342 Less: unpaid deferred revenue (58,045 ) (97,929 ) Net current deferred revenue and advance payments $ 119,773 $ 108,413 Non-current: Deferred product licenses revenue $ 6,714 $ 8,012 Deferred subscription services revenue 463 750 Deferred product support revenue 8,147 7,505 Deferred other services revenue 1,537 1,047 Gross non-current deferred revenue and advance payments 16,861 17,314 Less: unpaid deferred revenue (6,552 ) (6,496 ) Net non-current deferred revenue and advance payments $ 10,309 $ 10,818 The Company offsets its accounts receivable and deferred revenue for any unpaid items included in deferred revenue and advance payments. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies | (8) 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. Thus, 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 June 30, 2015 or December 31, 2014. 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. As of December 31, 2014, the Company was leasing approximately 233,000 square feet of office space at a location in Northern Virginia that began serving as its corporate headquarters in October 2010. The Company gave written notice in August 2014 of its intent to terminate the lease with respect to 19,000 square feet of this office space, effective February 2015, as part of the 2014 Restructuring Plan. The Company never used the terminated lease space, and it remained vacant until it was terminated in February 2015. The term of the amended lease expires in December 2020. At June 30, 2015 and December 31, 2014, deferred rent of $17.3 million and $18.9 million, respectively, is included in other long-term liabilities, and $3.3 million and $3.0 million, respectively, is included in current accrued expenses. (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 light of a judgment in a separate action involving DataTern in another jurisdiction, in February 2013, MicroStrategy and DataTern filed motions for summary judgment of non-infringement and the United States District Court for the District of Massachusetts 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 (the “Federal Circuit”). In December 2014, the Federal Circuit issued an opinion vacating the District of Massachusetts’ summary judgment, stating that the claim construction on which the summary judgment was based was incorrect. In January 2015, the Federal Circuit ordered that the case be remanded for further proceedings, and in February 2015, the Company filed motions for summary judgment in the district court on grounds of non-infringement and invalidity. The district court heard oral arguments on these motions on May 13, 2015, and the Company is awaiting the district court’s rulings. The Company has received indemnification requests from certain of its resellers and customers 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 infringed 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, the Northern District of California entered judgment of non-infringement in favor of the Company, which the Federal Circuit affirmed in April 2015. 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 the Company’s 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. |
Treasury Stock
Treasury Stock | 6 Months Ended |
Jun. 30, 2015 | |
Treasury Stock | (9) 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. During each of the three and six months ended June 30, 2015 and 2014, the Company did not repurchase any shares of its class A common stock pursuant to the 2005 Share Repurchase Program. As of June 30, 2015, 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. The average price per share and aggregate cost amounts disclosed above include broker commissions. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Taxes | (10) Income Taxes The Company and its subsidiaries conduct business in the U.S. and various foreign countries and are subject to taxation in numerous domestic and foreign jurisdictions. As a result of its business activities, the Company files tax returns that are subject to examination by various federal, state and local, and foreign tax authorities. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or foreign income tax examination by tax authorities for years before 2011. However, due to its use of state net operating loss (“NOL”) and federal tax credit carryovers in the U.S., U.S. tax authorities may attempt to reduce or fully offset the amount of state NOL or federal tax credit carryovers from tax years ended in 2007 and forward that were used in later tax years. The Company’s major foreign tax jurisdictions and tax years that remain subject to potential examination are Germany for tax years 2013 forward, Poland and China for tax years 2010 forward, Spain for tax years 2011 forward, and the United Kingdom for tax years 2013 forward. The Company settled a tax examination in Germany for years 2009 to 2012 in the first quarter of 2015 without a material assessment. The Company is currently under tax examination in the United States for tax years 2011 and 2012. To date, this audit has not resulted in any material assessment. As of June 30, 2015, the Company had unrecognized tax benefits of $2.7 million, which are recorded in other long-term liabilities. If recognized, $2.0 million of these unrecognized tax benefits would impact the effective tax rate. The Company recognizes estimated accrued interest related to unrecognized income tax benefits in the provision for income tax accounts. Penalties relating to income taxes, if incurred, would also be recognized as a component of the Company’s provision for income taxes. Over the next 12 months, the amount of the Company’s liability for unrecognized tax benefits is not expected to change by a material amount. As of June 30, 2015, the amount of cumulative accrued interest expense on unrecognized income tax benefits was approximately $0.5 million. The following table summarizes the Company’s deferred tax assets, net of deferred tax liabilities and valuation allowance (in thousands), as of: June 30, December 31, Deferred tax assets, net of deferred tax liabilities $ 6,735 $ 19,321 Valuation allowance (2,311 ) (2,311 ) Deferred tax assets, net of deferred tax liabilities and valuation allowance $ 4,424 $ 17,010 The valuation allowance as of June 30, 2015 and December 31, 2014 primarily relates to certain foreign net operating loss carryforward and foreign tax credit carryforward tax assets. The Company has determined that there is insufficient positive evidence that it is more likely than not that such deferred tax assets will be realized. The Company has estimated its annual effective tax rate for the full fiscal year 2015 and applied that rate to its income before income taxes in determining its provision for income taxes for the six months ended June 30, 2015. The Company also records discrete items in each respective period as appropriate. The estimated effective tax rate is subject to fluctuation based upon the level and mix of earnings and losses by tax jurisdiction, foreign tax rate differentials, and the relative impact of permanent book to tax differences (e.g., non-deductible expenses). Each quarter, a cumulative adjustment is recorded for any fluctuations in the estimated annual effective tax rate as compared to the prior quarter. As a result of these factors, and due to potential changes in the Company’s period to period results, fluctuations in the Company’s effective tax rate and respective tax provisions or benefits may occur. For the six months ended June 30, 2015, the Company recorded a provision for income taxes of $16.3 million that resulted in an effective tax rate of 27.5%, as compared to a benefit from income taxes of $5.8 million that resulted in an effective tax rate of 25.5% for the six months ended June 30, 2014. The change in the effective tax rate in 2015 is mainly due to changes in the forecasted overall income or loss amounts for 2015 and a change in the expected proportion of U.S. versus foreign income. 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 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 to the U.S. and no additional tax is incurred on the distribution. As of June 30, 2015 and December 31, 2014, the amount of cash and cash equivalents and short-term investments held by U.S. entities was $178.3 million and $139.1 million, respectively, and by non-U.S. entities was $249.6 million and $206.4 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 $201.7 million at December 31, 2014. 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. In determining the Company’s provision or benefit for 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 methods, 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 changes 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. If the Company is unable to sustain profitability in future periods, it may be required to increase the valuation allowance against the deferred tax assets, which could result in a charge that would materially adversely affect net income in the period in which the charge is incurred. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation | (11) Share-based Compensation In September 2013, the Board of Directors approved the Company’s 2013 Stock Incentive Plan (the “original 2013 Equity Plan”, and, as amended, the “2013 Equity Plan”), under which the Company’s employees, officers, directors, and other eligible participants may be awarded various types of share-based compensation, and authorized 600,000 shares of the Company’s class A common stock for issuance under the original 2013 Equity Plan. In April 2014, the Company’s stockholders approved the original 2013 Equity Plan. In April 2014, following stockholder approval of the original 2013 Equity Plan, the Board of Directors authorized, subject to stockholder approval, an amendment to the original 2013 Equity Plan to increase the total number of shares of the Company’s class A common stock authorized for issuance under the 2013 Equity Plan from 600,000 to 1,500,000 shares (“Amendment No. 1”). Also in April 2014, the Compensation Committee of the Board of Directors (the “Compensation Committee”) authorized, subject to stockholder approval, an additional amendment to the original 2013 Equity Plan to provide for automatic annual stock option grants to each of the Company’s non-employee directors with respect to 5,000 shares of the Company’s class A common stock, beginning in May 2015 (“Amendment No. 2”). In April 2015, the Company’s stockholders approved Amendments No. 1 and 2 at the Company’s annual meeting. During the second quarter of 2015, additional stock options to purchase an aggregate of 40,000 shares of class A common stock were granted to certain Company employees and directors pursuant to the 2013 Equity Plan, including options to purchase shares of class A common stock that were granted to the Company’s non-employee directors pursuant to the automatic annual grant provisions of the 2013 Equity Plan. As of June 30, 2015, there were options to purchase 1,306,250 shares of class A common stock outstanding under the 2013 Equity Plan and 130,000 remaining shares of class A common stock authorized for issuance and not subject to outstanding awards under the 2013 Equity Plan. The following table summarizes the Company’s stock option activity (in thousands, except per share data and years) for the three months ended June 30, 2015: Stock Options Outstanding Shares Weighted Average Aggregate Weighted Average Balance as of April 1, 2015 1,335 $ 119.39 Granted 40 177.39 Exercised (39 ) 102.52 $ 3,049 Forfeited/Expired (30 ) 165.01 Balance as of June 30, 2015 1,306 $ 120.62 Exercisable as of June 30, 2015 226 $ 108.75 $ 13,875 8.5 Expected to vest as of June 30, 2015 1,030 $ 124.57 $ 47,169 8.7 Total 1,256 $ 121.72 $ 61,044 8.6 Stock options outstanding as of June 30, 2015 are comprised of the following range of exercise prices per share (in thousands, except per share data and years): Stock Options Outstanding at June 30, 2015 Range of Exercise Prices per Share Shares Weighted Average Weighted Average $ 92.84 - $120.00 507 $ 94.49 7.1 $120.01 - $150.00 514 $ 121.43 8.8 $150.01 - $178.80 285 $ 165.66 9.6 Total 1,306 $ 120.62 8.3 An aggregate of 140,000 stock options with an aggregate fair value of $7.6 million vested during the three months ended June 30, 2015. The Company expects the majority of unvested options at June 30, 2015 to fully vest in future years in accordance with their vesting schedules. Share-based compensation expense has been adjusted, where applicable, for any expected forfeitures. The weighted average grant date fair value of stock option awards using the Black-Scholes pricing model was $73.23 and $54.01 for each share subject to a stock option granted during the three months ended June 30, 2015 and 2014, respectively, based on the following assumptions: Three months ended June 30, 2015 2014 Expected term of options in years 6.3 6.3 Expected volatility 39.2 - 39.3 % 42.4 - 42.5 % Risk-free interest rate 1.9 % 2.2 - 2.3 % Expected dividend yield 0.0 % 0.0 % For the three and six months ended June 30, 2015, the Company recognized approximately $4.4 million and $8.0 million, respectively, in share-based compensation expense from stock options granted under the 2013 Equity Plan. For the three and six months ended June 30, 2014, the Company recognized approximately $3.1 million and $4.7 million, respectively, in share-based compensation expense from stock options granted under the 2013 Equity Plan. As of June 30, 2015, there was approximately $48.3 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 vesting period of approximately 3.0 years. During the six months ended June 30, 2015, 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 under the 2013 Equity Plan. Accordingly, stockholders’ equity increased by $1.0 million during the six months ended June 30, 2015. During the six months ended June 30, 2014, no windfall tax benefits were realized from the exercise of stock options. |
Common Equity and Earnings Per
Common Equity and Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Common Equity and Earnings Per Share | (12) Common Equity and Earnings per Share 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 common stock and for 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 June 30, 2015 and December 31, 2014, there were no shares of preferred stock issued or outstanding. 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 stock options, are calculated using the treasury stock method. For the three and six months ended June 30, 2015, stock options issued under the 2013 Equity Plan to purchase a weighted average of approximately 276,000 and 254,000 shares of common stock, respectively, were excluded from the diluted earnings per share calculation because their impact would have been anti-dilutive. For the three and six months ended June 30, 2014, stock options issued under the 2013 Equity Plan to purchase a weighted average of approximately 1,043,000 and 823,000 shares of common stock, respectively, were excluded from the diluted earnings per share calculation because their impact would have been anti-dilutive. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Information | (13) Segment Information The Company manages its business in one operating segment. The Company’s one operating segment is engaged in the design, development, marketing, and sales of analytics, mobility, and security software platforms through licensing arrangements and cloud-based subscriptions and related services. It includes MicroStrategy 10 Secure Enterprise ™ ™ ™ ™ Geographic regions: Domestic EMEA Other Regions Consolidated Three months ended June 30, 2015 Total revenues $ 86,003 $ 35,248 $ 11,689 $ 132,940 Gross profit $ 70,394 $ 26,836 $ 9,798 $ 107,028 Three months ended June 30, 2014 Total revenues $ 82,542 $ 43,933 $ 15,378 $ 141,853 Gross profit $ 61,694 $ 31,905 $ 12,641 $ 106,240 Six months ended June 30, 2015 Total revenues $ 164,938 $ 68,997 $ 22,876 $ 256,811 Gross profit $ 132,852 $ 51,835 $ 19,114 $ 203,801 Six months ended June 30, 2014 Total revenues $ 163,147 $ 87,070 $ 29,540 $ 279,757 Gross profit $ 123,004 $ 63,845 $ 24,286 $ 211,135 As of June 30, 2015 Long-lived assets $ 87,792 $ 5,078 $ 3,317 $ 96,187 As of June 30, 2014 Long-lived assets $ 85,706 $ 6,022 $ 5,953 $ 97,681 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 three and six months ended June 30, 2015 and 2014, no individual foreign country accounted for 10% or more of total consolidated revenues. For the three and six months ended June 30, 2015 and 2014, no individual customer accounted for 10% or more of total consolidated revenues. As of June 30, 2015 and December 31, 2014, no individual foreign country accounted for 10% or more of total consolidated assets. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation | (a) Basis of Presentation Except for the Consolidated Balance Sheet of MicroStrategy Incorporated (“MicroStrategy” or the “Company”) as of December 31, 2014, which was derived from audited financial statements, the accompanying Consolidated Financial Statements are unaudited. In the opinion of management, all adjustments necessary for a fair statement of such financial position and results of operations have been included. All such adjustments are of a normal recurring nature unless otherwise disclosed. Interim results are not necessarily indicative of results for a full year. Certain amounts in the prior year’s Consolidated Financial Statements and Notes to Consolidated Financial Statements have been reclassified to conform to current year presentation. Revenues and cost of revenues have been reclassified in the Consolidated Statements of Operations to reflect the separate components of total product licenses and subscription services, and unrealized gains and losses on foreign currency forward contracts have been reclassified within the operating section in the Consolidated Statements of Cash Flows. The Consolidated Financial Statements and Notes to Consolidated Financial Statements are presented as required by the United States Securities and Exchange Commission (“SEC”) and do not contain certain information included in the Company’s annual financial statements and notes. These financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto filed with the SEC in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. There have been no significant changes in the Company’s accounting policies since December 31, 2014. 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 is not aware of any subsequent event which would require recognition or disclosure. |
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, accrued compensation and employee benefits, and accrued restructuring costs. The Company considers the carrying value of these instruments in the financial statements to approximate fair value due to their short maturities. |
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. The Company executes 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. |
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). |
Income taxes | The Company recognizes estimated accrued interest related to unrecognized income tax benefits in the provision for income tax accounts. In determining the Company’s provision or benefit for 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 methods, 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 changes 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. If the Company is unable to sustain profitability in future periods, it may be required to increase the valuation allowance against the deferred tax assets, which could result in a charge that would materially adversely affect net income in the period in which the charge is incurred. |
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 stock options, are calculated using the treasury stock method. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis by Level within Fair Value Hierarchy | As of June 30, 2015, there were no financial assets or liabilities measured at fair value on a recurring basis. As of December 31, 2014, 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): December 31, 2014 Fair Value Measurements Line Item Level 1 Level 2 Level 3 Total Non-hedging derivative assets: Foreign currency forward contracts Prepaid expenses and other current assets $ 0 $ 1,647 $ 0 $ 1,647 Non-hedging derivative liabilities: Foreign currency forward contracts Accounts payable and accrued expenses $ 0 $ 6 $ 0 $ 6 |
Changes in Fair Value of Foreign Currency Forward Contracts | Changes in the fair value of our foreign currency forward contracts (in thousands) for the three and six months ended June 30, 2015 and 2014 were as follows: Gain (Loss) on Derivative Instruments Recognized in Income Three Months Ended Six Months Ended June 30, June 30, Location 2015 2014 2015 2014 Non-hedging derivative instruments: Unrealized loss on foreign currency forward contracts Other income (expense), net $ (2,590 ) $ (46 ) $ (1,641 ) $ (86 ) Realized gain (loss) on foreign currency forward contracts Other income (expense), net $ 2,129 $ (307 ) $ 2,129 $ (562 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Accounts Receivable | Accounts receivable (in thousands) consisted of the following, as of: June 30, December 31, Billed and billable $ 124,380 $ 187,470 Less: unpaid deferred revenue (64,597 ) (104,425 ) Accounts receivable, gross 59,783 83,045 Less: allowance for doubtful accounts (3,745 ) (4,412 ) Accounts receivable, net $ 56,038 $ 78,633 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Major Types of Costs, Cumulative Costs Incurred and Total Cost Expected Associated With Restructuring Activities | The following table summarizes the major types of costs associated with the 2014 Restructuring Plan (in thousands) for each of the three and six months ended June 30, 2015 and 2014, total costs incurred through June 30, 2015 and total costs expected to be incurred: Three Months Ended Six Months Ended June 30, June 30, Cumulative Costs Total Expected 2015 2014 2015 2014 Incurred To Date Plan Costs Severance and related employee benefits $ 0 $ 0 $ 0 $ 0 $ 13,162 $ 13,162 Contract termination costs 0 0 0 0 1,159 1,159 Other costs 90 0 175 0 586 711 Total restructuring costs $ 90 $ 0 $ 175 $ 0 $ 14,907 $ 15,032 |
Summary of Changes in Restructuring-Related Liabilities | The following table presents a summary of changes in the restructuring-related liabilities (in thousands) for the six months ended June 30, 2015: Balance as of Costs Cash Non-cash Adjustments Balance as of Current: Severance and related employee benefits $ 2,215 $ 0 $ (1,697 ) $ 0 $ (286 ) $ 232 Contract termination costs 0 0 0 0 0 0 Other costs 69 175 (246 ) 0 6 4 Total current accrued restructuring costs $ 2,284 $ 175 $ (1,943 ) $ 0 $ (280 ) $ 236 |
Deferred Revenue and Advance 24
Deferred Revenue and Advance Payments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Revenue and Advance Payments | Deferred revenue and advance payments (in thousands) from customers consisted of the following, as of: June 30, December 31, Current: Deferred product licenses revenue $ 12,525 $ 10,927 Deferred subscription services revenue 12,362 16,018 Deferred product support revenue 146,194 168,833 Deferred other services revenue 6,737 10,564 Gross current deferred revenue and advance payments 177,818 206,342 Less: unpaid deferred revenue (58,045 ) (97,929 ) Net current deferred revenue and advance payments $ 119,773 $ 108,413 Non-current: Deferred product licenses revenue $ 6,714 $ 8,012 Deferred subscription services revenue 463 750 Deferred product support revenue 8,147 7,505 Deferred other services revenue 1,537 1,047 Gross non-current deferred revenue and advance payments 16,861 17,314 Less: unpaid deferred revenue (6,552 ) (6,496 ) Net non-current deferred revenue and advance payments $ 10,309 $ 10,818 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Company's Deferred Tax Assets, Liabilities and Valuation Allowance | The following table summarizes the Company’s deferred tax assets, net of deferred tax liabilities and valuation allowance (in thousands), as of: June 30, December 31, Deferred tax assets, net of deferred tax liabilities $ 6,735 $ 19,321 Valuation allowance (2,311 ) (2,311 ) Deferred tax assets, net of deferred tax liabilities and valuation allowance $ 4,424 $ 17,010 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 three months ended June 30, 2015: Stock Options Outstanding Shares Weighted Average Aggregate Weighted Average Balance as of April 1, 2015 1,335 $ 119.39 Granted 40 177.39 Exercised (39 ) 102.52 $ 3,049 Forfeited/Expired (30 ) 165.01 Balance as of June 30, 2015 1,306 $ 120.62 Exercisable as of June 30, 2015 226 $ 108.75 $ 13,875 8.5 Expected to vest as of June 30, 2015 1,030 $ 124.57 $ 47,169 8.7 Total 1,256 $ 121.72 $ 61,044 8.6 |
Range Of Exercise Prices | Stock options outstanding as of June 30, 2015 are comprised of the following range of exercise prices per share (in thousands, except per share data and years): Stock Options Outstanding at June 30, 2015 Range of Exercise Prices per Share Shares Weighted Average Weighted Average $ 92.84 - $120.00 507 $ 94.49 7.1 $120.01 - $150.00 514 $ 121.43 8.8 $150.01 - $178.80 285 $ 165.66 9.6 Total 1,306 $ 120.62 8.3 |
Assumptions Used in Black-Scholes Option-Pricing Model | The weighted average grant date fair value of stock option awards using the Black-Scholes pricing model was $73.23 and $54.01 for each share subject to a stock option granted during the three months ended June 30, 2015 and 2014, respectively, based on the following assumptions: Three months ended June 30, 2015 2014 Expected term of options in years 6.3 6.3 Expected volatility 39.2 - 39.3 % 42.4 - 42.5 % Risk-free interest rate 1.9 % 2.2 - 2.3 % Expected dividend yield 0.0 % 0.0 % |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Revenues and Long-Lived Assets, by Geographic Region | The following table presents total revenues, gross profit, and long-lived assets, excluding long-term deferred tax assets, (in thousands) according to geographic region: Geographic regions: Domestic EMEA Other Regions Consolidated Three months ended June 30, 2015 Total revenues $ 86,003 $ 35,248 $ 11,689 $ 132,940 Gross profit $ 70,394 $ 26,836 $ 9,798 $ 107,028 Three months ended June 30, 2014 Total revenues $ 82,542 $ 43,933 $ 15,378 $ 141,853 Gross profit $ 61,694 $ 31,905 $ 12,641 $ 106,240 Six months ended June 30, 2015 Total revenues $ 164,938 $ 68,997 $ 22,876 $ 256,811 Gross profit $ 132,852 $ 51,835 $ 19,114 $ 203,801 Six months ended June 30, 2014 Total revenues $ 163,147 $ 87,070 $ 29,540 $ 279,757 Gross profit $ 123,004 $ 63,845 $ 24,286 $ 211,135 As of June 30, 2015 Long-lived assets $ 87,792 $ 5,078 $ 3,317 $ 96,187 As of June 30, 2014 Long-lived assets $ 85,706 $ 6,022 $ 5,953 $ 97,681 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Measurements [Line Items] | ||
Assets measured at fair value on a non-recurring basis | $ 0 | $ 0 |
Liabilities measured at fair value on a non-recurring basis | 0 | $ 0 |
Foreign currency forward contracts | ||
Fair Value Measurements [Line Items] | ||
Assets measured at fair value on a recurring basis | 0 | |
Liabilities measured at fair value on a recurring basis | $ 0 |
Financial Assets and Liabilitie
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis by Level within Fair Value Hierarchy (Detail) - Fair Value, Measurements, Recurring - Foreign currency forward contracts - Non-hedging derivative $ in Thousands | Dec. 31, 2014USD ($) |
Prepaid expenses and other current assets | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative assets | $ 1,647 |
Accounts payable and accrued expenses | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative liabilities | 6 |
Level 1 | Prepaid expenses and other current assets | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative assets | 0 |
Level 1 | Accounts payable and accrued expenses | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative liabilities | 0 |
Level 2 | Prepaid expenses and other current assets | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative assets | 1,647 |
Level 2 | Accounts payable and accrued expenses | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative liabilities | 6 |
Level 3 | Prepaid expenses and other current assets | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative assets | 0 |
Level 3 | Accounts payable and accrued expenses | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative liabilities | $ 0 |
Changes in Fair Value of Foreig
Changes in Fair Value of Foreign Currency Forward Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments | $ (1,641) | $ (86) | ||
Unrealized (loss) gain on foreign currency forward contracts | Other (expense) income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments | $ (2,590) | $ (46) | (1,641) | (86) |
Realized loss on foreign currency forward contracts | Other (expense) income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments | $ 2,129 | $ (307) | $ 2,129 | $ (562) |
Short Term Investments - Additi
Short Term Investments - Additional Information (Detail) - US Treasury Securities - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Investment [Line Items] | ||
Held to maturity securities, amortized cost | $ 226.7 | $ 198.5 |
Held to maturity securities, carrying value | 226.7 | 198.5 |
Held to maturity securities, fair value | 226.7 | 198.5 |
Other-than-temporary impairments related to these investments | $ 0 | $ 0 |
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 ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed and billable | $ 124,380 | $ 187,470 |
Less: unpaid deferred revenue | (64,597) | (104,425) |
Accounts receivable, gross | 59,783 | 83,045 |
Less: allowance for doubtful accounts | (3,745) | (4,412) |
Accounts receivable, net | $ 56,038 | $ 78,633 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - 2014 Restructuring Plan | 6 Months Ended |
Jun. 30, 2015Employee | |
Restructuring Cost and Reserve [Line Items] | |
Number of workforce expected to be reduced | 777 |
Domestic | |
Restructuring Cost and Reserve [Line Items] | |
Number of workforce expected to be reduced | 217 |
Asia Pacific | |
Restructuring Cost and Reserve [Line Items] | |
Number of workforce expected to be reduced | 400 |
EMEA | |
Restructuring Cost and Reserve [Line Items] | |
Number of workforce expected to be reduced | 141 |
Latin America | |
Restructuring Cost and Reserve [Line Items] | |
Number of workforce expected to be reduced | 19 |
Summary of Major Types of Costs
Summary of Major Types of Costs, Cumulative Costs Incurred and Total Cost Expected Associated With Restructuring Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 90 | $ 0 | $ 175 | $ 0 |
Cumulative Costs Incurred To Date | 14,907 | 14,907 | ||
Total Expected Plan Costs | 15,032 | 15,032 | ||
Severance and related employee benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative Costs Incurred To Date | 13,162 | 13,162 | ||
Total Expected Plan Costs | 13,162 | 13,162 | ||
Contract termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative Costs Incurred To Date | 1,159 | 1,159 | ||
Total Expected Plan Costs | 1,159 | 1,159 | ||
Other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative Costs Incurred To Date | 586 | 586 | ||
Total Expected Plan Costs | 711 | 711 | ||
Operating expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 90 | 0 | 175 | 0 |
Operating expenses | Severance and related employee benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 0 | 0 | 0 |
Operating expenses | Contract termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 0 | 0 | 0 |
Operating expenses | Other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 90 | $ 0 | $ 175 | $ 0 |
Summary of Changes in Restructu
Summary of Changes in Restructuring-Related Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | $ 2,284 | |||
Costs Incurred | $ 90 | $ 0 | 175 | $ 0 |
Adjustments and Other | 127 | $ 0 | ||
Ending Balance | 236 | 236 | ||
Accrued restructuring costs | Current accrued restructuring costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | 2,284 | |||
Costs Incurred | 175 | |||
Cash Payments | (1,943) | |||
Non-cash Settlements | 0 | |||
Adjustments and Other | (280) | |||
Ending Balance | 236 | 236 | ||
Accrued restructuring costs | Current accrued restructuring costs | Severance and related employee benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | 2,215 | |||
Costs Incurred | 0 | |||
Cash Payments | (1,697) | |||
Non-cash Settlements | 0 | |||
Adjustments and Other | (286) | |||
Ending Balance | 232 | 232 | ||
Accrued restructuring costs | Current accrued restructuring costs | Contract termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | 0 | |||
Costs Incurred | 0 | |||
Cash Payments | 0 | |||
Non-cash Settlements | 0 | |||
Adjustments and Other | 0 | |||
Ending Balance | 0 | 0 | ||
Accrued restructuring costs | Current accrued restructuring costs | Other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | 69 | |||
Costs Incurred | 175 | |||
Cash Payments | (246) | |||
Non-cash Settlements | 0 | |||
Adjustments and Other | 6 | |||
Ending Balance | $ 4 | $ 4 |
Deferred Revenue and Advance 36
Deferred Revenue and Advance Payments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred product licenses revenue, Current | $ 12,525 | $ 10,927 |
Deferred subscription services revenue, Current | 12,362 | 16,018 |
Deferred product support revenue, Current | 146,194 | 168,833 |
Deferred other services revenue, Current | 6,737 | 10,564 |
Gross current deferred revenue and advance payments | 177,818 | 206,342 |
Less: unpaid deferred revenue | (58,045) | (97,929) |
Net current deferred revenue and advance payments | 119,773 | 108,413 |
Deferred product licenses revenue, Non-current | 6,714 | 8,012 |
Deferred subscription services revenue, Non-current | 463 | 750 |
Deferred product support revenue, Non-current | 8,147 | 7,505 |
Deferred other services revenue, Non-current | 1,537 | 1,047 |
Gross non-current deferred revenue and advance payments | 16,861 | 17,314 |
Less: unpaid deferred revenue | (6,552) | (6,496) |
Net non-current deferred revenue and advance payments | $ 10,309 | $ 10,818 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2014USD ($)ft² | Jun. 30, 2015USD ($) | |
Northern Virginia Office Space | ||
Commitments and Contingencies [Line Items] | ||
Office space area leased under the agreement | ft² | 233,000 | |
Lease expiration date | 2020-12 | |
Deferred rent included in other long-term liabilities | $ 18.9 | $ 17.3 |
Deferred rent included in current accrued expenses | $ 3 | $ 3.3 |
Northern Virginia Office, Additional Office Space | 2014 Restructuring Plan | ||
Commitments and Contingencies [Line Items] | ||
Lease expiration date | 2015-02 | |
Office space ceased to be used | ft² | 19,000 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||
Treasury stock, shares | 6,405,000 | 6,405,000 |
Treasury stock, cost | $ 475,184,000 | $ 475,184,000 |
Shares repurchased program expiration date | Apr. 29, 2018 | |
Class A | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock authorized to repurchase by board of directors | $ 800,000,000 | |
Shares repurchased, average price per share | $ 90.23 | |
Class A | Two Thousand Five Share Repurchase Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Treasury stock, shares | 3,826,947 | |
Treasury stock, cost | $ 345,300,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Taxes | |||||
Unrecognized tax benefits | $ 2,700 | $ 2,700 | |||
Unrecognized tax benefits would impact the effective tax rate | 2,000 | 2,000 | |||
Interest accrued | 500 | $ 500 | |||
Effective tax rate from operations | 27.50% | 25.50% | |||
Provision for (benefit from) income taxes | 9,381 | $ (2,831) | $ 16,318 | $ (5,766) | |
Undistributed foreign earnings | $ 201,700 | ||||
U.S. statutory rate | 35.00% | ||||
Federal | |||||
Income Taxes | |||||
Cash and cash equivalents and short-term investments | 178,300 | $ 178,300 | 139,100 | ||
Foreign | |||||
Income Taxes | |||||
Cash and cash equivalents and short-term investments | $ 249,600 | $ 249,600 | $ 206,400 | ||
Germany | Earliest Tax Year | |||||
Income Taxes | |||||
Tax years subject to examination | 2,013 | ||||
Tax years settled which were under tax examination | 2,009 | ||||
Germany | Latest Tax Year | |||||
Income Taxes | |||||
Tax years settled which were under tax examination | 2,012 | ||||
Poland | Earliest Tax Year | |||||
Income Taxes | |||||
Tax years subject to examination | 2,010 | ||||
United Kingdom | Earliest Tax Year | |||||
Income Taxes | |||||
Tax years subject to examination | 2,013 | ||||
Spain | Earliest Tax Year | |||||
Income Taxes | |||||
Tax years subject to examination | 2,011 | ||||
China | Earliest Tax Year | |||||
Income Taxes | |||||
Tax years subject to examination | 2,010 | ||||
United States | Tax Year 2011 | |||||
Income Taxes | |||||
Tax years currently under tax examination | 2,011 | ||||
United States | Tax Year 2012 | |||||
Income Taxes | |||||
Tax years currently under tax examination | 2,012 |
Companys Deferred Tax Assets Ne
Companys Deferred Tax Assets Net of Deferred Tax Liabilities and Valuation Allowance (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Deferred Income Tax Assets and Liabilities | ||
Deferred tax assets, net of deferred tax liabilities | $ 6,735 | $ 19,321 |
Valuation allowance | (2,311) | (2,311) |
Deferred tax assets, net of deferred tax liabilities and valuation allowance | $ 4,424 | $ 17,010 |
Share Based Compensation - Addi
Share Based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option awards granted | 40,000 | ||||||
Options outstanding, shares | 1,306,000 | 1,306,000 | 1,335,000 | ||||
Stock options vested | 140,000 | ||||||
Aggregate fair value of stock option vested | $ 7,600,000 | ||||||
Weighted average grant date fair value of stock option awards | $ 73.23 | $ 54.01 | |||||
Unrecognized share-based compensation expense | $ 48,300,000 | $ 48,300,000 | |||||
Unrecognized compensation expense expected to be recognized | 3 years | ||||||
Tax benefit realized from exercise of stock options | $ 1,000,000 | $ 0 | |||||
Class A | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Remaining shares of class A common stock authorized for future issuance | 130,000 | 130,000 | |||||
2013 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense recognized | $ 4,400,000 | $ 3,100,000 | $ 8,000,000 | $ 4,700,000 | |||
2013 Plan | Class A | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation, stock authorized | 1,500,000 | 600,000 | |||||
Options outstanding, shares | 1,306,250 | 1,306,250 | |||||
2013 Plan | Class A | Non Employee Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of automatic annual stock option grants authorized to each of the Company's non-employee directors beginning 2015 | 5,000 | ||||||
2013 Plan | Class A | Employees, Officers and Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option awards granted | 40,000 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - Jun. 30, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Total |
Options outstanding, shares | |
Beginning Balance | 1,335 |
Granted | 40 |
Exercised | (39) |
Forfeited/Expired | (30) |
Ending Balance | 1,306 |
Exercisable as of June 30, 2015 | 226 |
Expected to vest as of June 30, 2015 | 1,030 |
Total | 1,256 |
Weighted Average Exercise Price Per Share | |
Beginning Balance | $ 119.39 |
Granted | 177.39 |
Exercised | 102.52 |
Forfeited/Expired | 165.01 |
Ending Balance | 120.62 |
Exercisable as of June 30, 2015 | 108.75 |
Expected to vest as of June 30, 2015 | 124.57 |
Total | $ 121.72 |
Aggregate Intrinsic Value | |
Exercised | $ 3,049 |
Exercisable as of June 30, 2015 | 13,875 |
Expected to vest as of June 30, 2015 | 47,169 |
Total | $ 61,044 |
Weighted Average Remaining Contractual Term (Years) | |
Exercisable as of June 30, 2015 | 8 years 6 months |
Expected to vest as of June 30, 2015 | 8 years 8 months 12 days |
Total | 8 years 7 months 6 days |
Range of Exercise Prices (Detai
Range of Exercise Prices (Detail) - Jun. 30, 2015 - $ / shares shares in Thousands | Total |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Shares, Stock Options Outstanding | 1,306 |
Weighted Average Exercise Price, Stock Options Exercisable | $ 120.62 |
Weighted Average Remaining Contractual Term, Stock Options Outstanding | 8 years 3 months 18 days |
92.84 - 120.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price per Share, minimum | $ 92.84 |
Range of Exercise Price per Share, maximum | $ 120 |
Shares, Stock Options Outstanding | 507 |
Weighted Average Exercise Price, Stock Options Exercisable | $ 94.49 |
Weighted Average Remaining Contractual Term, Stock Options Outstanding | 7 years 1 month 6 days |
120.01 - 150.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price per Share, minimum | $ 120.01 |
Range of Exercise Price per Share, maximum | $ 150 |
Shares, Stock Options Outstanding | 514 |
Weighted Average Exercise Price, Stock Options Exercisable | $ 121.43 |
Weighted Average Remaining Contractual Term, Stock Options Outstanding | 8 years 9 months 18 days |
150.01 - 178.80 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price per Share, minimum | $ 150.01 |
Range of Exercise Price per Share, maximum | $ 178.80 |
Shares, Stock Options Outstanding | 285 |
Weighted Average Exercise Price, Stock Options Exercisable | $ 165.66 |
Weighted Average Remaining Contractual Term, Stock Options Outstanding | 9 years 7 months 6 days |
Assumptions Used in Determining
Assumptions Used in Determining Fair Value of Options Granted (Detail) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value Assumptions Disclosure [ Line Items] | ||
Expected term of options in years | 6 years 3 months 18 days | 6 years 3 months 18 days |
Expected volatility, Minimum | 39.20% | 42.40% |
Expected volatility, Maximum | 39.30% | 42.50% |
Risk-free interest rate, Minimum | 1.90% | 2.20% |
Risk-free interest rate, Maximum | 2.30% | |
Expected dividend yield | 0.00% | 0.00% |
Common Equity and Earnings Pe45
Common Equity and Earnings Per Share - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Class of Stock | |||||
Payments of dividends, common stock | $ 0 | $ 0 | |||
Preferred stock, shares issued | 0 | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | 0 | ||
2013 Plan | |||||
Class of Stock | |||||
Shares issuable under stock options excluded from calculation of diluted earnings per share | 276,000 | 1,043,000 | 254,000 | 823,000 | |
Class A | |||||
Class of Stock | |||||
Common stock, votes per share | One | ||||
Class B Convertible | |||||
Class of Stock | |||||
Common stock, votes per share | Ten |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015CustomerCountry | Jun. 30, 2014CustomerCountry | Jun. 30, 2015CustomerCountrySegment | Jun. 30, 2014CustomerCountry | Dec. 31, 2014Country | |
Segment Reporting Information | |||||
Number of operating segments | Segment | 1 | ||||
Geographic Concentration Risk | |||||
Segment Reporting Information | |||||
Number Of Individual Country accounted for 10% or more of total revenues | 0 | 0 | 0 | 0 | |
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 | Customer | 0 | 0 | 0 | 0 |
Total Revenues Gross Profit and
Total Revenues Gross Profit and Long Lived Assets Excluding Long Term Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets | ||||
Total revenues | $ 132,940 | $ 141,853 | $ 256,811 | $ 279,757 |
Gross profit | 107,028 | 106,240 | 203,801 | 211,135 |
Long-lived assets | 96,187 | 97,681 | 96,187 | 97,681 |
Domestic | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Total revenues | 86,003 | 82,542 | 164,938 | 163,147 |
Gross profit | 70,394 | 61,694 | 132,852 | 123,004 |
Long-lived assets | 87,792 | 85,706 | 87,792 | 85,706 |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Total revenues | 35,248 | 43,933 | 68,997 | 87,070 |
Gross profit | 26,836 | 31,905 | 51,835 | 63,845 |
Long-lived assets | 5,078 | 6,022 | 5,078 | 6,022 |
Other Regions | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Total revenues | 11,689 | 15,378 | 22,876 | 29,540 |
Gross profit | 9,798 | 12,641 | 19,114 | 24,286 |
Long-lived assets | $ 3,317 | $ 5,953 | $ 3,317 | $ 5,953 |