Manhattan Associates (MANH) 10-Q 26 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 20, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	MANH
Entity Registrant Name	MANHATTAN ASSOCIATES INC
Entity Central Index Key	1,056,696
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		73,064,283

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 109,029	$ 115,708
Short-term investments	10,117	8,730
Accounts receivable, net of allowance of $6,863 and $4,164, respectively	92,045	86,828
Deferred income taxes	9,352	9,900
Prepaid expenses and other current assets	11,092	8,695
Total current assets	231,635	229,861
Property and equipment, net	21,351	17,265
Goodwill, net	62,237	62,250
Deferred income taxes	260	270
Other assets	7,264	8,524
Total assets	322,747	318,170
Current liabilities:
Accounts payable	10,095	12,483
Accrued compensation and benefits	24,914	30,889
Accrued and other liabilities	12,258	12,501
Deferred revenue	65,180	58,968
Income taxes payable	7,204	7,974
Total current liabilities	119,651	122,815
Other non-current liabilities	$ 12,733	$ 13,332
Shareholders' equity:
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2015 and 2014
Common stock, $0.01 par value; 200,000,000 shares authorized; 73,064,213 and 74,104,064 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 731	$ 741
Retained earnings	201,673	191,305
Accumulated other comprehensive loss	(12,041)	(10,023)
Total shareholders' equity	190,363	182,023
Total liabilities and shareholders' equity	$ 322,747	$ 318,170

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 6,863	$ 4,164
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	73,064,213	74,104,064
Common stock, shares outstanding	73,064,213	74,104,064

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Software license	$ 19,130	$ 16,945	$ 58,202	$ 52,041
Services	112,549	98,518	321,096	278,950
Hardware and other	10,625	10,145	35,638	30,710
Total revenue	142,304	125,608	414,936	361,701
Costs and expenses:
Cost of license	2,305	1,679	7,348	5,140
Cost of services	46,682	43,689	137,930	123,606
Cost of hardware and other	9,109	8,496	29,819	25,240
Research and development	13,589	12,236	40,402	35,906
Sales and marketing	10,904	11,476	34,640	36,344
General and administrative	14,058	10,856	37,223	32,761
Depreciation and amortization	1,977	1,675	5,656	4,652
Total costs and expenses	98,624	90,107	293,018	263,649
Operating income	43,680	35,501	121,918	98,052
Other income (loss), net	604	(55)	1,225	24
Income before income taxes	44,284	35,446	123,143	98,076
Income tax provision	16,387	13,106	46,038	36,430
Net income	$ 27,897	$ 22,340	$ 77,105	$ 61,646
Basic earnings per share	$ 0.38	$ 0.30	$ 1.05	$ 0.82
Diluted earnings per share	$ 0.38	$ 0.30	$ 1.04	$ 0.81
Weighted average number of shares:
Basic	73,259	74,687	73,616	75,255
Diluted	73,761	75,466	74,162	76,104

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 27,897	$ 22,340	$ 77,105	$ 61,646
Foreign currency translation adjustment	(1,891)	(1,697)	(2,018)	(420)
Comprehensive income	$ 26,006	$ 20,643	$ 75,087	$ 61,226

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities:
Net income	$ 77,105	$ 61,646
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,656	4,652
Equity-based compensation	11,087	6,967
Gain on disposal of equipment	(38)	(23)
Tax benefit of stock awards exercised/vested	8,435	7,395
Excess tax benefits from equity-based compensation	(8,413)	(7,359)
Deferred income taxes	712	122
Unrealized foreign currency loss (gain)	86	(36)
Changes in operating assets and liabilities:
Accounts receivable, net	(6,609)	(17,147)
Other assets	(1,592)	(6,408)
Accounts payable, accrued and other liabilities	(8,444)	1,564
Income taxes	(602)	(2,442)
Deferred revenue	6,651	4,786
Net cash provided by operating activities	84,034	53,717
Investing activities:
Purchase of property and equipment	(9,619)	(6,676)
Net purchases of investments	(1,825)	(1,849)
Payment in connection with acquisition		(2,773)
Net cash used in investing activities	(11,444)	(11,298)
Financing activities:
Purchase of common stock	(86,839)	(73,706)
Proceeds from issuance of common stock from options exercised	568	1,014
Excess tax benefits from equity-based compensation	8,413	7,359
Net cash used in financing activities	(77,858)	(65,333)
Foreign currency impact on cash	(1,411)	(345)
Net change in cash and cash equivalents	(6,679)	(23,259)
Cash and cash equivalents at beginning of period	115,708	124,375
Cash and cash equivalents at end of period	$ 109,029	$ 101,116

Basis of Presentation and Princ

Basis of Presentation and Principles of Consolidation	9 Months Ended
	Sep. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation and Principles of Consolidation	1. Basis of Presentation and Principles of Consolidation Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Manhattan Associates, Inc. and its subsidiaries (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information, with the instructions to Form 10-Q and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, these condensed consolidated financial statements contain all normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position at September 30, 2015, the results of operations for the three and nine months ended September 30, 2015 and 2014, and cash flows for the nine months ended September 30, 2015 and 2014. The results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Company’s audited consolidated financial statements and management’s discussion and analysis included in the Company’s annual report on Form 10-K for the year ended December 31, 2014. Principles of Consolidation The accompanying condensed consolidated financial statements include the Company’s accounts and the accounts of its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2015
Revenue Recognition [Abstract]
Revenue Recognition	2. Revenue Recognition The Company’s revenue consists of fees from the licensing and hosting of software (collectively included in “Software license” revenue in the Condensed Consolidated Statements of Income), fees from implementation and training services (collectively, “professional services”) and customer support services and software enhancements (collectively with professional services revenue included in “Services” revenue in the Condensed Consolidated Statements of Income), and sales of hardware and other revenue, which consists of reimbursements of out-of-pocket expenses incurred in connection with our professional services (collectively included in “Hardware and other” revenue in the Condensed Consolidated Statements of Income). All revenue is recognized net of any related sales taxes. The Company recognizes license revenue when the following criteria are met: (1) a signed contract is obtained covering all elements of the arrangement, (2) delivery of the product has occurred, (3) the license fee is fixed or determinable, and (4) collection is probable. Revenue recognition for software with multiple-element arrangements requires recognition of revenue using the “residual method” when (a) there is vendor-specific objective evidence (VSOE) of the fair values of all undelivered elements in a multiple-element arrangement that is not accounted for using long-term contract accounting, (b) VSOE of fair value does not exist for one or more of the delivered elements in the arrangement, and (c) all other applicable revenue-recognition criteria for software revenue recognition are satisfied. For those contracts that contain significant customization or modifications, license revenue is recognized using contract accounting. The Company allocates revenue to customer support services and software enhancements and any other undelivered elements of the arrangement based on VSOE of fair value of each element, and such amounts are deferred until the applicable delivery criteria and other revenue recognition criteria have been met. The balance of the revenue, net of any discounts inherent in the arrangement, is recognized at the outset of the arrangement using the residual method as the product licenses are delivered. If the Company cannot objectively determine the fair value of each undelivered element based on the VSOE of fair value, the Company defers revenue recognition until all elements are delivered, all services have been performed, or until fair value can be objectively determined. The Company must apply judgment in determining all elements of the arrangement and in determining the VSOE of fair value for each element, considering the price charged for each product on a stand-alone basis or applicable renewal rates. For arrangements that include future software functionality deliverables, the Company accounts for these deliverables as a separate element of the arrangement. Because the Company does not sell these deliverables on a standalone basis, the Company is not able to establish VSOE of fair value of these deliverables. As a result, the Company defers all revenue under the arrangement until the future functionality has been delivered to the customer. Payment terms for the Company’s software licenses vary. Each contract is evaluated individually to determine whether the fees in the contract are fixed or determinable and whether collectability is probable. Judgment is required in assessing the probability of collection, which is generally based on evaluation of customer-specific information, historical collection experience, and economic market conditions. If market conditions decline, or if the financial conditions of customers deteriorate, the Company may be unable to determine that collectability is probable, and the Company could be required to defer the recognition of revenue until the Company receives customer payments. The Company has an established history of collecting under the terms of its software license contracts without providing refunds or concessions to its customers. Therefore, the Company has determined that the presence of payment terms that extend beyond contract execution in a particular contract do not preclude the conclusion that the fees in the contract are fixed or determinable. Although infrequent, when payment terms in a contract extend beyond twelve months, the Company has determined that such fees are not fixed or determinable and recognizes revenue as payments become due provided that all other conditions for revenue recognition have been met. The Company’s services revenue consists of fees generated from professional services and customer support and software enhancements related to the Company’s software products. Professional services include system planning, design, configuration, testing, and other software implementation support, and are not typically essential to the functionality of the software. Fees from professional services performed by the Company are separately priced and are generally billed on an hourly basis, and revenue is recognized as the services are performed. In certain situations, professional services are rendered under agreements in which billings are limited to contractual maximums or based upon a fixed fee for portions of or all of the engagement. Revenue related to fixed-fee-based contracts is recognized on a proportional performance basis based on the hours incurred on discrete projects within an overall services arrangement. The Company has determined that output measures, or services delivered, approximate the input measures associated with fixed-fee services arrangements. Project losses are provided for in their entirety in the period in which they become known. Revenue related to customer support services and software enhancements is generally paid in advance and recognized ratably over the term of the agreement, typically twelve months. Hardware and other revenue is generated from the resale of a variety of hardware products, developed and manufactured by third parties, that are integrated with and complementary to the Company’s software solutions. As part of a complete solution, the Company’s customers periodically purchase hardware from the Company for use with the software licenses purchased from the Company. These products include computer hardware, radio frequency terminal networks, radio frequency identification (RFID) chip readers, bar code printers and scanners, and other peripherals. Hardware revenue is recognized upon shipment to the customer when title passes. The Company generally purchases hardware from the Company’s vendors only after receiving an order from a customer. As a result, the Company generally does not maintain hardware inventory. In accordance with the other presentation matters within the Revenue Recognition Topic of the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC), the Company recognizes amounts associated with reimbursements from customers for out-of-pocket expenses as revenue. Such amounts have been included in “Hardware and other” revenue in the Condensed Consolidated Statements of Income. The total amount of expense reimbursement recorded to revenue was $5.2 million and $5.4 million for the three months ended September 30, 2015 and 2014, respectively, and $15.4 million and $13.9 million for the nine months ended September 30, 2015 and 2014, respectively.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurement	3. Fair Value Measurement The Company measures its investments based on a fair value hierarchy disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. Market price observability is affected by a number of factors, including the type of asset or liability and its characteristics. This hierarchy prioritizes the inputs into three broad levels as follows: · Level 1–Quoted prices in active markets for identical instruments. · Level 2–Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. · Level 3–Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The Company’s investments are categorized as available-for-sale securities and recorded at fair market value. Investments with maturities of 90 days or less from the date of purchase are classified as cash equivalents; investments with maturities of greater than 90 days from the date of purchase but less than one year are generally classified as short-term investments; and investments with maturities of one year or greater from the date of purchase are generally classified as long-term investments. Unrealized holding gains and losses are reflected as a net amount in a separate component of shareholders’ equity until realized. For the purposes of computing realized gains and losses, cost is determined on a specific identification basis. At September 30, 2015, the Company’s cash, cash equivalents, and short-term investments balances were $70.1 million, $38.9 million, and $10.1 million, respectively. The Company currently has no long-term investments. Cash equivalents consist of highly liquid money market funds and certificates of deposit. Short-term investments consist of certificates of deposit. The Company uses quoted prices from active markets that are classified at Level 1 as a highest level observable input in the disclosure hierarchy framework for all available-for-sale securities. At both September 30, 2015 and December 31, 2014, the Company had $30.4 million in money market funds, which are classified as Level 1 and are included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. The Company has no investments classified as Level 2 or Level 3.

Equity-Based Compensation

Equity-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity-Based Compensation	4. Equity-Based Compensation The Company granted 222,601 and 34,143 restricted stock and restricted stock units (collectively “restricted stock awards”) during the three months ended September 30, 2015 and 2014, respectively, and 576,882 and 390,070 restricted stock awards during the nine months ended September 30, 2015 and 2014, respectively. The Company recorded equity-based compensation expense related to restricted stock awards of $5.3 million and $2.3 million during the three months ended September 30, 2015 and 2014, respectively, and $11.1 million and $7.0 million during the nine months ended September 30, 2015 and 2014, respectively. A summary of changes in unvested shares/units for the nine months ended September 30, 2015 is as follows: Number of shares/units Outstanding at December 31, 2014 1,346,062 Granted 576,882 Vested (637,310 ) Forfeited (69,154 ) Outstanding at September 30, 2015 1,216,480 No amounts were recorded for equity-based compensation expense related to stock options during the three and nine months ended September 30, 2015 and 2014 as all stock options vested prior to 2014. The Company does not currently grant stock options. A summary of changes in outstanding options for the nine months ended September 30, 2015 is as follows: Number of Options Outstanding at December 31, 2014 153,764 Exercised (113,352 ) Forfeited and expired - Outstanding at September 30, 2015 40,412

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	5. Income Taxes The Company’s effective tax rate was 37.0% for both the three months ended September 30, 2015 and 2014, and 37.4% and 37.1% for the nine months ended September 30, 2015 and 2014, respectively. The increase in the effective tax rate for the nine months ended September 30, 2015 was primarily due to increases in state tax rates. The Company applies the provisions for income taxes related to, among other things, accounting for uncertain tax positions and disclosure requirements in accordance with the Income Taxes Topic of the FASB Accounting Standards Codification (ASC 740). For the three months ended September 30, 2015, there was an increase of $0.2 million to the Company’s uncertain tax positions primarily due to increased reserves for certain state tax positions. There has been no change to the Company’s policy that recognizes potential interest and penalties related to uncertain tax positions within its global operations in income tax expense. The Company currently plans to permanently reinvest all of its remaining undistributed foreign earnings. Accordingly, no provision for U.S. federal and state income taxes has been provided thereon. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to adjustment for foreign tax credits) and withholding taxes payable to various foreign countries. It is impractical to calculate the tax impact until such repatriation occurs. The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is no longer subject to U.S. federal income tax examinations, substantially all state and local income tax examinations and substantially all non-U.S. income tax examinations for years before 2011.

Net Earnings Per Share

Net Earnings Per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net Earnings Per Share	6. Net Earnings Per Share Basic net earnings per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for each period presented. Diluted net earnings per share is computed using net income divided by the sum of Weighted Shares and common equivalent shares (“CESs”) outstanding for each period presented using the treasury stock method. The following is a reconciliation of the net income and share amounts used in the computation of basic and diluted net earnings per common share for the three and nine months ended September 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in (in thousands, except per share data) Net income $ 27,897 $ 22,340 $ 77,105 $ 61,646 Earnings per share: Basic $ 0.38 $ 0.30 $ 1.05 $ 0.82 Effect of CESs - - (0.01 ) (0.01 ) Diluted $ 0.38 $ 0.30 $ 1.04 $ 0.81 Weighted average number of shares: Basic 73,259 74,687 73,616 75,255 Effect of CESs 502 779 546 849 Diluted 73,761 75,466 74,162 76,104 There were no anti-dilutive CESs during 2015 and 2014.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Contingencies	7. Contingencies From time to time, the Company may be involved in litigation relating to claims arising out of its ordinary course of business, and occasionally legal proceedings not in the ordinary course. Many of the Company’s installations involve products that are critical to the operations of its clients’ businesses. Any failure in a Company product could result in a claim for substantial damages against the Company, regardless of the Company’s responsibility for such failure. Although the Company attempts to limit contractually its liability for damages arising from product failures or negligent acts or omissions, there can be no assurance that the limitations of liability set forth in its contracts will be enforceable in all instances. The Company is not currently a party to any legal proceedings the result of which it believes is likely to have a material adverse impact upon its business, financial position, results of operations, or cash flows. The Company expenses legal costs associated with loss contingencies as such legal costs are incurred.

Operating Segments

Operating Segments	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Operating Segments	8. Operating Segments The Company manages the business by geographic segment. The Company has three geographic reportable segments: North America and Latin America (the “Americas”); Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). All segments derive revenue from the sale and implementation of the Company’s supply chain execution and planning solutions. The individual products sold by the segments are similar in nature and are all designed to help companies manage the effectiveness and efficiency of their supply chain. The Company uses the same accounting policies for each reportable segment. The chief executive officer and chief financial officer evaluate performance based on revenue and operating results for each reportable segment. The Americas segment charges royalty fees to the other segments based on software licenses sold by those reportable segments. The royalties, which totaled approximately $0.5 million and $0.3 million for the three months ended September 30, 2015 and 2014, respectively, and approximately $2.1 million and $2.6 million for the nine months ended September 30, 2015 and 2014, respectively, are included in cost of revenue for each segment with a corresponding reduction in America’s cost of revenue. The revenues represented below are from external customers only. The geographical-based costs consist of costs of professional services personnel, direct sales and marketing expenses, cost of infrastructure to support the employees and customer base, billing and financial systems, management and general and administrative support. There are certain corporate expenses included in the Americas segment that are not charged to the other segments, including research and development, certain marketing and general and administrative costs that support the global organization, and the amortization of acquired developed technology. Included in the Americas’ costs are all research and development costs including the costs associated with the Company’s India operations. The following table presents the revenues, expenses and operating income by reportable segment for the three and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, 2015 2014 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: License $ 16,977 $ 1,347 $ 806 $ 19,130 $ 15,650 $ 589 $ 706 $ 16,945 Services 93,513 14,700 4,336 112,549 78,452 13,139 6,927 98,518 Hardware and other 9,628 782 215 10,625 9,317 525 303 10,145 Total revenue 120,118 16,829 5,357 142,304 103,419 14,253 7,936 125,608 Costs and Expenses: Cost of revenue 47,305 7,891 2,900 58,096 42,970 7,312 3,582 53,864 Operating expenses 34,630 2,893 1,028 38,551 30,168 3,242 1,158 34,568 Depreciation and amortization 1,776 136 65 1,977 1,531 82 62 1,675 Total costs and expenses 83,711 10,920 3,993 98,624 74,669 10,636 4,802 90,107 Operating income $ 36,407 $ 5,909 $ 1,364 $ 43,680 $ 28,750 $ 3,617 $ 3,134 $ 35,501 Nine Months Ended September 30, 2015 2014 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 49,754 $ 6,995 $ 1,453 $ 58,202 $ 41,606 $ 6,660 $ 3,775 $ 52,041 Services 264,288 43,404 13,404 321,096 223,240 37,854 17,856 278,950 Hardware and other 33,189 1,910 539 35,638 28,561 1,329 820 30,710 Total revenue 347,231 52,309 15,396 414,936 293,407 45,843 22,451 361,701 Costs and Expenses: Cost of revenue 140,957 25,437 8,703 175,097 121,004 22,339 10,643 153,986 Operating expenses 98,424 10,564 3,277 112,265 90,154 11,361 3,496 105,011 Depreciation and amortization 5,047 361 248 5,656 4,239 229 184 4,652 Total costs and expenses 244,428 36,362 12,228 293,018 215,397 33,929 14,323 263,649 Operating income $ 102,803 $ 15,947 $ 3,168 $ 121,918 $ 78,010 $ 11,914 $ 8,128 $ 98,052 License revenues related to the Company’s warehouse and non-warehouse product groups for the three and nine months ended September 30, 2015 and 2014 are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Warehouse $ 13,140 $ 8,876 $ 35,060 $ 28,917 Non-Warehouse 5,990 8,069 23,142 23,124 Total software license revenue $ 19,130 $ 16,945 $ 58,202 $ 52,041 The Company’s services revenues, which consist of fees generated from professional services and customer support and software enhancements related to its software products, for the three and nine months ended September 30, 2015 and 2014 are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Professional services $ 80,994 $ 69,398 $ 230,201 $ 194,522 Customer support and software enhancements 31,555 29,120 90,895 84,428 Total services revenue $ 112,549 $ 98,518 $ 321,096 $ 278,950

New Accounting Pronouncement

New Accounting Pronouncement	9 Months Ended
	Sep. 30, 2015
Accounting Changes And Error Corrections [Abstract]
New Accounting Pronouncement	9. New Accounting Pronouncement In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition – Revenue from Contracts with Customers, which will replace substantially all current revenue recognition guidance once it becomes effective. The new standard provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers unless the contracts are in the scope of other standards. The new standard is less prescriptive and may require software entities to use more judgment and estimates in the revenue recognition process than are required under existing revenue guidance. This guidance is effective for annual and interim periods beginning after December 15, 2016, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption (which includes additional footnote disclosures). In August 2015, the FASB issued an Accounting Standards Update (ASU) deferring the effective date of the new revenue recognition standard by one year to December 15, 2017 for annual reporting periods beginning after that date. The FASB also permitted early adoption of the standard, but not before the original effective date of December 15, 2016. We are currently evaluating the impact, if any, the adoption of this standard will have on our Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. This guidance is effective for annual and interim periods beginning after December 15, 2015. We are currently evaluating the impact, if any, the adoption of this standard will have on our Consolidated Financial Statements.

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Changes in Unvested Shares/Units of Restricted Stock	A summary of changes in unvested shares/units for the nine months ended September 30, 2015 is as follows: Number of shares/units Outstanding at December 31, 2014 1,346,062 Granted 576,882 Vested (637,310 ) Forfeited (69,154 ) Outstanding at September 30, 2015 1,216,480
Summary of Changes in Outstanding Options	A summary of changes in outstanding options for the nine months ended September 30, 2015 is as follows: Number of Options Outstanding at December 31, 2014 153,764 Exercised (113,352 ) Forfeited and expired - Outstanding at September 30, 2015 40,412

Net Earnings Per Share (Tables)

Net Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Reconciliation of Net Income and Share Amounts in Computation of Basic and Diluted Net Earnings Per Common Share	The following is a reconciliation of the net income and share amounts used in the computation of basic and diluted net earnings per common share for the three and nine months ended September 30, 2015 and 2014 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in (in thousands, except per share data) Net income $ 27,897 $ 22,340 $ 77,105 $ 61,646 Earnings per share: Basic $ 0.38 $ 0.30 $ 1.05 $ 0.82 Effect of CESs - - (0.01 ) (0.01 ) Diluted $ 0.38 $ 0.30 $ 1.04 $ 0.81 Weighted average number of shares: Basic 73,259 74,687 73,616 75,255 Effect of CESs 502 779 546 849 Diluted 73,761 75,466 74,162 76,104

Operating Segments (Tables)

Operating Segments (Tables)	9 Months Ended
	Sep. 30, 2015
Revenues, Expenses and Operating Income by Reporting Segment	The following table presents the revenues, expenses and operating income by reportable segment for the three and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, 2015 2014 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: License $ 16,977 $ 1,347 $ 806 $ 19,130 $ 15,650 $ 589 $ 706 $ 16,945 Services 93,513 14,700 4,336 112,549 78,452 13,139 6,927 98,518 Hardware and other 9,628 782 215 10,625 9,317 525 303 10,145 Total revenue 120,118 16,829 5,357 142,304 103,419 14,253 7,936 125,608 Costs and Expenses: Cost of revenue 47,305 7,891 2,900 58,096 42,970 7,312 3,582 53,864 Operating expenses 34,630 2,893 1,028 38,551 30,168 3,242 1,158 34,568 Depreciation and amortization 1,776 136 65 1,977 1,531 82 62 1,675 Total costs and expenses 83,711 10,920 3,993 98,624 74,669 10,636 4,802 90,107 Operating income $ 36,407 $ 5,909 $ 1,364 $ 43,680 $ 28,750 $ 3,617 $ 3,134 $ 35,501 Nine Months Ended September 30, 2015 2014 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 49,754 $ 6,995 $ 1,453 $ 58,202 $ 41,606 $ 6,660 $ 3,775 $ 52,041 Services 264,288 43,404 13,404 321,096 223,240 37,854 17,856 278,950 Hardware and other 33,189 1,910 539 35,638 28,561 1,329 820 30,710 Total revenue 347,231 52,309 15,396 414,936 293,407 45,843 22,451 361,701 Costs and Expenses: Cost of revenue 140,957 25,437 8,703 175,097 121,004 22,339 10,643 153,986 Operating expenses 98,424 10,564 3,277 112,265 90,154 11,361 3,496 105,011 Depreciation and amortization 5,047 361 248 5,656 4,239 229 184 4,652 Total costs and expenses 244,428 36,362 12,228 293,018 215,397 33,929 14,323 263,649 Operating income $ 102,803 $ 15,947 $ 3,168 $ 121,918 $ 78,010 $ 11,914 $ 8,128 $ 98,052
License Revenue
Revenues	License revenues related to the Company’s warehouse and non-warehouse product groups for the three and nine months ended September 30, 2015 and 2014 are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Warehouse $ 13,140 $ 8,876 $ 35,060 $ 28,917 Non-Warehouse 5,990 8,069 23,142 23,124 Total software license revenue $ 19,130 $ 16,945 $ 58,202 $ 52,041
Sales Revenue, Services, Net
Revenues	The Company’s services revenues, which consist of fees generated from professional services and customer support and software enhancements related to its software products, for the three and nine months ended September 30, 2015 and 2014 are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Professional services $ 80,994 $ 69,398 $ 230,201 $ 194,522 Customer support and software enhancements 31,555 29,120 90,895 84,428 Total services revenue $ 112,549 $ 98,518 $ 321,096 $ 278,950

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue Recognition [Abstract]
Expense reimbursement recorded to revenue	$ 5.2	$ 5.4	$ 15.4	$ 13.9

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Fair Value Inputs Assets Quantitative Information [Line Items]
Cash balance	$ 70,100,000
Cash equivalents	38,900,000
Short-term investments	10,117,000	$ 8,730,000
Long term investments	0
Money Market Funds
Fair Value Inputs Assets Quantitative Information [Line Items]
Available-for-sale securities	$ 30,400,000	$ 30,400,000

Equity-Based Compensation - Add

Equity-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock expense	$ 5,300,000	$ 2,300,000	$ 11,100,000	$ 7,000,000
Stock option expense	$ 0	$ 0	$ 0	$ 0
Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of restricted stock awards granted in the period	222,601	34,143	576,882	390,070

Summary of Changes in Unvested

Summary of Changes in Unvested Shares/Units of Restricted Stock (Detail) - Restricted Stock Awards - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares/units, Outstanding at December 31, 2014			1,346,062
Number of shares/units, Granted	222,601	34,143	576,882	390,070
Number of shares/units, Vested			(637,310)
Number of shares/units, Forfeited			(69,154)
Number of shares/units, Outstanding at September 30, 2015	1,216,480		1,216,480

Summary of Changes in Outstandi

Summary of Changes in Outstanding Options (Detail)	9 Months Ended
	Sep. 30, 2015shares
Number of Shares
Number of Options, Outstanding at December 31, 2014	153,764
Number of Options, Exercised	(113,352)
Number of Options, Outstanding at September 30, 2015	40,412

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Effective tax rate	37.00%	37.00%	37.40%	37.10%
Increase in uncertain tax position	$ 0.2

Reconciliation of Net Income an

Reconciliation of Net Income and Share Amounts in Computation of Basic and Diluted Net Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income	$ 27,897	$ 22,340	$ 77,105	$ 61,646
Earnings per share:
Basic	$ 0.38	$ 0.30	$ 1.05	$ 0.82
Effect of CESs			(0.01)	(0.01)
Diluted	$ 0.38	$ 0.30	$ 1.04	$ 0.81
Weighted average number of shares:
Basic	73,259	74,687	73,616	75,255
Effect of CESs	502	779	546	849
Diluted	73,761	75,466	74,162	76,104

Net Earnings Per Share - Additi

Net Earnings Per Share - Additional Information (Detail) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Options to purchase shares of common stock outstanding that were not included in the computation of diluted earnings per share	0	0

Operating Segments - Additional

Operating Segments - Additional Information (Detail) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)Segment	Sep. 30, 2014USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segment			3
Americas
Segment Reporting Information [Line Items]
Americas royalty fees	$ 0.5	$ 0.3	$ 2.1	$ 2.6

Revenues, Expenses and Operatin

Revenues, Expenses and Operating Income by Reporting Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Software license	$ 19,130	$ 16,945	$ 58,202	$ 52,041
Services	112,549	98,518	321,096	278,950
Hardware and other	10,625	10,145	35,638	30,710
Total revenue	142,304	125,608	414,936	361,701
Cost of revenue	58,096	53,864	175,097	153,986
Operating expenses	38,551	34,568	112,265	105,011
Depreciation and amortization	1,977	1,675	5,656	4,652
Total costs and expenses	98,624	90,107	293,018	263,649
Operating income	43,680	35,501	121,918	98,052
Americas
Segment Reporting Information [Line Items]
Software license	16,977	15,650	49,754	41,606
Services	93,513	78,452	264,288	223,240
Hardware and other	9,628	9,317	33,189	28,561
Total revenue	120,118	103,419	347,231	293,407
Cost of revenue	47,305	42,970	140,957	121,004
Operating expenses	34,630	30,168	98,424	90,154
Depreciation and amortization	1,776	1,531	5,047	4,239
Total costs and expenses	83,711	74,669	244,428	215,397
Operating income	36,407	28,750	102,803	78,010
EMEA
Segment Reporting Information [Line Items]
Software license	1,347	589	6,995	6,660
Services	14,700	13,139	43,404	37,854
Hardware and other	782	525	1,910	1,329
Total revenue	16,829	14,253	52,309	45,843
Cost of revenue	7,891	7,312	25,437	22,339
Operating expenses	2,893	3,242	10,564	11,361
Depreciation and amortization	136	82	361	229
Total costs and expenses	10,920	10,636	36,362	33,929
Operating income	5,909	3,617	15,947	11,914
APAC
Segment Reporting Information [Line Items]
Software license	806	706	1,453	3,775
Services	4,336	6,927	13,404	17,856
Hardware and other	215	303	539	820
Total revenue	5,357	7,936	15,396	22,451
Cost of revenue	2,900	3,582	8,703	10,643
Operating expenses	1,028	1,158	3,277	3,496
Depreciation and amortization	65	62	248	184
Total costs and expenses	3,993	4,802	12,228	14,323
Operating income	$ 1,364	$ 3,134	$ 3,168	$ 8,128

License Revenues of Warehouse a

License Revenues of Warehouse and Non-Warehouse Product Groups (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue from External Customer [Line Items]
Software license revenue	$ 19,130	$ 16,945	$ 58,202	$ 52,041
Warehouse Product Groups
Revenue from External Customer [Line Items]
Software license revenue	13,140	8,876	35,060	28,917
Non-warehouse Product Groups
Revenue from External Customer [Line Items]
Software license revenue	$ 5,990	$ 8,069	$ 23,142	$ 23,124

Services Revenues from Professi

Services Revenues from Professional Services and Customer Support and Software Enhancements (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting [Abstract]
Professional services	$ 80,994	$ 69,398	$ 230,201	$ 194,522
Customer support and software enhancements	31,555	29,120	90,895	84,428
Total services revenue	$ 112,549	$ 98,518	$ 321,096	$ 278,950