Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MANH | ||
Entity Registrant Name | MANHATTAN ASSOCIATES INC | ||
Entity Central Index Key | 1,056,696 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 72,998,434 | ||
Entity Public Float | $ 4,379,735,575 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | |||
Software license | $ 78,615 | $ 71,583 | $ 62,416 |
Services | 428,078 | 376,023 | 315,901 |
Hardware and other | 49,678 | 44,498 | 36,201 |
Total revenue | 556,371 | 492,104 | 414,518 |
Costs and expenses: | |||
Cost of license | 9,938 | 7,110 | 8,724 |
Cost of services | 184,349 | 169,140 | 142,236 |
Cost of hardware and other | 41,141 | 36,328 | 30,191 |
Research and development | 53,859 | 48,953 | 44,549 |
Sales and marketing | 48,615 | 52,617 | 44,559 |
General and administrative | 49,259 | 44,455 | 37,147 |
Depreciation and amortization | 7,764 | 6,377 | 5,825 |
Total costs and expenses | 394,925 | 364,980 | 313,231 |
Operating income | 161,446 | 127,124 | 101,287 |
Interest income | 1,331 | 1,268 | 1,167 |
Other income (loss), net | 64 | (394) | 655 |
Income before income taxes | 162,841 | 127,998 | 103,109 |
Income tax provision | 59,366 | 45,998 | 35,813 |
Net income | $ 103,475 | $ 82,000 | $ 67,296 |
Basic earnings per share | $ 1.41 | $ 1.09 | $ 0.88 |
Diluted earnings per share | $ 1.40 | $ 1.08 | $ 0.86 |
Weighted average number of shares: | |||
Basic | 73,443 | 74,995 | 76,664 |
Diluted | 74,038 | 75,841 | 77,932 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 103,475 | $ 82,000 | $ 67,296 |
Foreign currency translation adjustment | (2,283) | (2,241) | (3,079) |
Comprehensive income | $ 101,192 | $ 79,759 | $ 64,217 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 118,416 | $ 115,708 |
Short-term investments | 10,344 | 8,730 |
Accounts receivable, net of allowance of $7,031 and $4,164 in 2015 and 2014, respectively | 97,379 | 86,828 |
Deferred income taxes | 10,231 | 9,900 |
Prepaid expenses | 9,224 | 7,282 |
Other current assets | 1,548 | 1,413 |
Total current assets | 247,142 | 229,861 |
Property and equipment, net | 21,176 | 17,265 |
Goodwill, net | 62,233 | 62,250 |
Deferred income taxes | 86 | 270 |
Other assets | 7,275 | 8,524 |
Total assets | 337,912 | 318,170 |
Current liabilities: | ||
Accounts payable | 11,219 | 12,483 |
Accrued compensation and benefits | 29,284 | 30,889 |
Accrued and other liabilities | 13,853 | 12,501 |
Deferred revenue | 68,757 | 58,968 |
Income taxes payable | 4,072 | 7,974 |
Total current liabilities | 127,185 | 122,815 |
Deferred rent, long-term | 3,811 | 4,965 |
Deferred income taxes | 5,704 | 3,960 |
Other non-current liabilities | $ 5,720 | $ 4,407 |
Shareholders' equity: | ||
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2015 and 2014 | ||
Common stock, $.01 par value; 200,000,000 shares authorized; 72,766,383 and 74,104,064 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | $ 728 | $ 741 |
Retained earnings | 207,070 | 191,305 |
Accumulated other comprehensive loss | (12,306) | (10,023) |
Total shareholders' equity | 195,492 | 182,023 |
Total liabilities and shareholders' equity | $ 337,912 | $ 318,170 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 7,031 | $ 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 | 72,766,383 | 74,104,064 |
Common stock, shares outstanding | 72,766,383 | 74,104,064 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income | $ 103,475 | $ 82,000 | $ 67,296 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,764 | 6,377 | 5,825 |
Equity-based compensation | 14,528 | 9,671 | 7,325 |
(Gain) loss on disposal of equipment | (30) | (13) | 31 |
Tax benefit of stock awards exercised/vested | 9,170 | 8,640 | 6,980 |
Excess tax benefits from equity-based compensation | (9,147) | (8,562) | (6,637) |
Deferred income taxes | 1,532 | (1,705) | 3,165 |
Unrealized foreign currency loss (gain) | 49 | (624) | 205 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (12,223) | (16,758) | (9,174) |
Other assets | (1,427) | (5,198) | 697 |
Accounts payable, accrued and other liabilities | (1,592) | 13,519 | 3,164 |
Income taxes | (2,271) | 338 | 4,500 |
Deferred revenue | 10,325 | 6,477 | 6,010 |
Net cash provided by operating activities | 120,153 | 94,162 | 89,387 |
Investing activities: | |||
Purchases of property and equipment | (11,492) | (9,415) | (4,740) |
Purchases of short-term investments | (15,385) | (14,644) | (14,751) |
Maturities of short-term investments | 13,334 | 14,165 | 11,686 |
Payment in connection with acquisition | (2,773) | ||
Net cash used in investing activities | (13,543) | (12,667) | (7,805) |
Financing activities: | |||
Purchase of common stock | (112,138) | (99,204) | (64,199) |
Proceeds from issuance of common stock from options exercised | 717 | 1,571 | 5,754 |
Excess tax benefits from equity-based compensation | 9,147 | 8,562 | 6,637 |
Net cash used in financing activities | (102,274) | (89,071) | (51,808) |
Foreign currency impact on cash | (1,628) | (1,091) | (2,136) |
Net change in cash and cash equivalents | 2,708 | (8,667) | 27,638 |
Cash and cash equivalents at beginning of period | 115,708 | 124,375 | 96,737 |
Cash and cash equivalents at end of period | 118,416 | 115,708 | 124,375 |
Supplemental disclosures of cash flow information: | |||
Cash paid for taxes | $ 50,902 | $ 38,674 | $ 21,191 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2012 | $ 161,509 | $ 785 | $ 165,427 | $ (4,703) | |
Balance (in shares) at Dec. 31, 2012 | 78,483,868 | ||||
Repurchase of common stock | (64,199) | $ (32) | $ (20,048) | (44,119) | |
Repurchase of common stock, shares | (3,132,276) | ||||
Stock option exercises | 5,754 | $ 11 | 5,743 | ||
Stock option exercises (in shares) | 1,014,956 | ||||
Restricted stock units issuance/shares cancelation (in shares) | 7,632 | ||||
Equity-based compensation | 7,325 | 7,325 | |||
Tax effects of equity-based compensation | 6,980 | 6,980 | |||
Foreign currency translation adjustment | (3,079) | (3,079) | |||
Net income | 67,296 | 67,296 | |||
Balance at Dec. 31, 2013 | 181,586 | $ 764 | 188,604 | (7,782) | |
Balance (in shares) at Dec. 31, 2013 | 76,374,180 | ||||
Repurchase of common stock | (99,204) | $ (29) | (19,876) | (79,299) | |
Repurchase of common stock, shares | (2,868,630) | ||||
Stock option exercises | 1,571 | $ 3 | 1,568 | ||
Stock option exercises (in shares) | 286,456 | ||||
Restricted stock units issuance/shares cancelation | $ 3 | (3) | |||
Restricted stock units issuance/shares cancelation (in shares) | 312,058 | ||||
Equity-based compensation | 9,671 | 9,671 | |||
Tax effects of equity-based compensation | 8,640 | 8,640 | |||
Foreign currency translation adjustment | (2,241) | (2,241) | |||
Net income | 82,000 | 82,000 | |||
Balance at Dec. 31, 2014 | 182,023 | $ 741 | 191,305 | (10,023) | |
Balance (in shares) at Dec. 31, 2014 | 74,104,064 | ||||
Repurchase of common stock | (112,138) | $ (19) | (24,409) | (87,710) | |
Repurchase of common stock, shares | (1,947,432) | ||||
Stock option exercises | $ 717 | $ 2 | 715 | ||
Stock option exercises (in shares) | 150,154 | 150,154 | |||
Restricted stock units issuance/shares cancelation | $ 4 | (4) | |||
Restricted stock units issuance/shares cancelation (in shares) | 459,597 | ||||
Equity-based compensation | $ 14,528 | 14,528 | |||
Tax effects of equity-based compensation | 9,170 | $ 9,170 | |||
Foreign currency translation adjustment | (2,283) | (2,283) | |||
Net income | 103,475 | 103,475 | |||
Balance at Dec. 31, 2015 | $ 195,492 | $ 728 | $ 207,070 | $ (12,306) | |
Balance (in shares) at Dec. 31, 2015 | 72,766,383 |
Organization, Consolidation and
Organization, Consolidation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Summary of Significant Accounting Policies | 1. Organization, Consolidation and Summary of Significant Accounting Policies Organization and Business Manhattan Associates, Inc. (“Manhattan” or the “Company”) is a developer and provider of supply chain commerce solutions that help organizations optimize the effectiveness, efficiency, and strategic advantages of their supply chains. The Company’s solutions consist of software, services, and hardware, which coordinate people, workflows, assets, events, and tasks holistically across the functions linked in a supply chain from planning through execution. These solutions also help coordinate the actions, data exchange, and communication of participants in supply chain ecosystems, such as manufacturers, suppliers, distributors, trading partners, transportation providers, channels (such as catalogers, store retailers, and Web outlets), and consumers. The Company’s operations are in North America, Europe (EMEA), and the Asia/Pacific (APAC) region. The European operations are conducted through the Company’s wholly-owned subsidiaries, Manhattan Associates Limited, Manhattan Associates Europe B.V., Manhattan France SARL, and Manhattan Associates GmbH, in the United Kingdom, the Netherlands, France, and Germany, respectively. The Company’s Asia/Pacific operations are conducted through its wholly-owned subsidiaries, Manhattan Associates Pty Ltd., Manhattan Associates KK, Manhattan Associates Software (Shanghai), Co. Ltd., Manhattan Associates Software Pte Ltd., and Manhattan Associates (India) Development Centre Private Limited in Australia, Japan, China, Singapore, and India, respectively. The Company occasionally sells its products and services in other countries, such as countries in Latin America, Eastern Europe, Middle East, and Asia, through its direct sales channel as well as various reseller channels. Stock Split and Increase of the Authorized Number of Shares of Common Stock On December 19, 2013, the Board of Directors of the Company approved a four-for-one stock split of the Company’s common stock, effected in the form of a stock dividend. Each shareholder of record at the close of business on December 31, 2013 received three additional shares for every outstanding share held on the record date. The additional shares were distributed on January 10, 2014 and trading began on a split-adjusted basis on January 13, 2014. On May 15, 2014, the shareholders of the Company approved an amendment to the Company’s articles of incorporation to increase the authorized number of shares of common stock from 100,000,000 to 200,000,000. The amendment was effective on May 15, 2014. All references made to share or per share amounts in the accompanying condensed consolidated financial statements and applicable disclosures have been restated to reflect the effect of the four-for-one stock split for all periods presented. The Company retained the current par value of $0.01 per share for all shares of common stock. Stockholders’ equity reflects the stock split by reclassifying an amount equal to the par value of the additional shares arising from the split from “Additional Paid-in Capital” or “Retained Earnings” to “Common stock.” Principles of Consolidation and Foreign Currency Translation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements of foreign subsidiaries have been translated into United States dollars in accordance with the foreign currency matters topic in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (the “Codification”). Revenues and expenses from international operations were denominated in the respective local currencies and translated using the average monthly exchange rates for the year. All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date and the effect of changes in exchange rates from year to year are disclosed as a separate component of shareholders’ equity and comprehensive income. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued guidance codified in Accounting Standard Codification (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 now effective for annual and interim periods beginning after December 15, 2017, 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). We are currently evaluating the impact the adoption of this standard will have on our Consolidated Financial Statements. In April 2015, the FASB issued Accounting Standard Update (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 adopted this ASU as of December 31, 2015. The adoption of the ASU did not have a material impact on our financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes to simplify the presentation of the deferred income taxes. The ASU requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The guidance does not change the existing requirement that only permits offsetting within a tax-paying component of an entity. This guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, but may be adopted earlier. We have not adopted this ASU as of December 31, 2015, but believe that the adoption of the ASU will not have a material impact on our financial statements. Summary of Significant Accounting Policies Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash or cash equivalents. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, short- and long-term investments and accounts receivable. The Company maintains cash and cash equivalents and short- and long-term investments with various financial institutions. Amounts held are above the federally insured limit. The Company’s sales are primarily to companies located in the United States, Europe and Asia. The Company performs periodic credit evaluations of its customers’ financial condition and does not require collateral. Accounts receivable are due principally from large U.S., European and Asia Pacific companies under stated contract terms. Accounts receivable, net as of December 31, 2015 for the Americas, EMEA, and APAC companies were $79.5 million, $12.7 million, and $5.2 million, respectively. Accounts receivable, net as of December 31, 2014 for the Americas, EMEA, and APAC companies were $69.2 million, $13.5 million, and $4.1 million, respectively. The Company’s top five customers in aggregate accounted for 8%, 10%, and 11% of total revenue recognized for each of the years ended December 31, 2015, 2014 and 2013, respectively. No single customer accounted for more than 10% of revenue in the years ended December 31, 2015, 2014 and 2013 or for more than 10% of accounts receivable as of December 31, 2015 and 2014. 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 their 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 December 31, 2015, the Company’s cash, cash equivalents, and short-term investments balances were $78.7 million, $39.7 million, and $10.4 million, respectively. Cash equivalents consist of highly liquid money market funds and certificates of deposit. Short-term investments consist of certificates of deposit. At December 31, 2015, the Company has $19.8 million in certificates of deposit in India, which are included in cash equivalents and short-term investments. 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 December 31, 2015, the Company has $30.3 million in money market funds, which are classified as Level 1 and are included in cash and cash equivalents on the Consolidated Balance Sheet. The Company has no long-term investments or investments classified as Level 2 or Level 3. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts, which is based upon an evaluation of historical amounts written-off, the customers’ ability to pay, and general economic conditions; self-insurance accruals; impairment of goodwill; stock based compensation, which is based on the number of awards ultimately expected to vest; and the Company’s effective income tax rate (including the impact of unrecognized tax benefits) and deferred tax assets, which are based upon the Company’s expectations of future taxable income, allowable deductions, and projected tax credits. Actual results will differ from these estimates. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and other financial instruments included in the accompanying Consolidated Balance Sheets approximate their fair values principally due to the short-term maturities of these instruments. Unrealized gains and losses on investments are included as a separate component of “Accumulated other comprehensive loss,” net of any related tax effect, in the Consolidated Balance Sheets. Risks Associated with Single Business Line, Technological Advances, and Foreign Operations The Company currently derives a substantial portion of its revenues from sales of its software and related services and hardware. The markets for supply chain commerce solutions are highly competitive, subject to rapid technological change, changing customer needs, frequent new product introductions, and evolving industry standards that may render existing products and services obsolete. As a result, the Company’s position in these markets could be eroded rapidly by unforeseen changes in customer requirements for application features, functions, and technologies. The Company’s growth and future operating results will depend, in part, upon its ability to enhance existing applications and develop and introduce new applications that meet changing customer requirements that respond to competitive products and that achieve market acceptance. Any factor adversely affecting the markets for supply chain commerce solutions could have an adverse effect on the Company’s business, financial condition, results of operations and operating cash flows. The Company’s international business is subject to risks typical of an international business, including, but not limited to, differing economic conditions, changes in political climate, differing tax structures, other regulations and restrictions, and foreign exchange rate volatility. In addition, we have a large development center in Bangalore, India, that does not have a natural in-market revenue hedge to mitigate currency risk to our operating expense in India. Fluctuations in the value of other currencies, particularly the Indian rupee, could significantly affect our revenues, expenses, operating profit and net income. The Company recognized foreign exchange losses of $0.1 million and $0.4 million in 2015 and 2014, respectively, and a foreign exchange rate gain of $0.7 million in 2013. Foreign exchange rate transaction gains and losses are classified in “Other income (loss), net” on the Consolidated Statements of Income. Revenue Recognition The Company’s revenue consists of fees from the licensing and hosting of software (collectively included in “Software license” revenue in the 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 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 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 our standard terms or 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 Consolidated Statements of Income. The total amount of expense reimbursement recorded to revenue was $20.2 million, $18.9 million, and $15.3 million for 2015, 2014 and 2013, respectively. Deferred Revenue Deferred revenue represents amounts collected prior to having completed performance of professional services, customer support services and software enhancements, and significant remaining obligations under license agreements. The Company generally expects to complete such services or obligations within the next twelve months. Returns and Allowances The Company has not experienced significant returns or warranty claims to date and, as a result, has not recorded a provision for the cost of returns and product warranty claims at December 31, 2015 or 2014. The Company records an allowance for doubtful accounts based on the historical experience of write-offs and a detailed assessment of accounts receivable. Additions to the allowance for doubtful accounts generally represent a sales allowance on services revenue, which are recorded to operations as a reduction to services revenue. The total amounts charged to operations were $7.1 million, $4.8 million, and $2.9 million for 2015, 2014 and 2013, respectively. In estimating the allowance for doubtful accounts, management considers the age of the accounts receivable, the Company’s historical write-offs, and the creditworthiness of the customer, among other factors. Should any of these factors change, the estimates made by management will also change accordingly, which could affect the level of the Company’s future allowances. Uncollectible accounts are written off when it is determined that the specific balance is not collectible. Property and Equipment Property and equipment is recorded at cost and consists of furniture, computers, other office equipment, internal use software, and leasehold improvements. The Company depreciates the cost of furniture, computers, other office equipment, and internal use software on a straight-line basis over their estimated useful lives (three to five years for computer software, five years for office equipment, seven years for furniture and fixtures). Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Depreciation expense for property and equipment for the years ended December 31, 2015, 2014 and 2013 was approximately $7.3 million, $6.2 million, and $5.8 million, respectively, and was included in “Depreciation and amortization” in the Consolidated Statements of Income. Property and equipment, at cost, consist of the following (in thousands): December 31, 2015 2014 Office equipment $ 33,912 $ 32,916 Computer software 18,809 17,351 Furniture and fixtures 4,100 3,022 Leasehold improvement 18,119 15,191 Property and equipment, gross 74,940 68,480 Less accumulated depreciation (53,764 ) (51,215 ) Property and equipment, net $ 21,176 $ 17,265 Software Development Costs Research and development expenses are charged to expense as incurred. For the years ended December 31, 2015, 2014 and 2013, the Company did not capitalize any internal research and development costs because the costs incurred between the attainment of technological feasibility for the related software product through the date when the product was available for general release to customers have been insignificant. The Company determines the amount of development costs capitalizable under the provisions of FASB Codification accounting for costs of computer software to be sold, leased, or marketed. Under this guidance, computer software development costs are charged to R&D expense until technological feasibility is established, after which remaining software production costs are capitalized. The Company has defined technological feasibility as the point in time at which the Company has a detailed program design or a working model of the related product, depending on the type of development efforts, and high-risk development issues have been resolved through end-to-end system testing. Impairment of Long-Lived Assets The Company reviews the values assigned to long-lived assets, including property and certain intangible assets, to determine whether events and circumstances have occurred which indicate that the remaining estimated useful lives may warrant revision or that the remaining balances may not be recoverable. In such reviews, undiscounted cash flows associated with these assets are compared with their carrying value to determine if a write-down to fair value is required. During 2015, 2014 and 2013, the Company did not recognize any impairment charges associated with its long-lived or intangible assets. The evaluation of asset impairment requires management to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment, and actual results may differ from assumed and estimated amounts. Goodwill and Impairment of Goodwill Goodwill Goodwill represents the excess of purchase price over fair value of net identified tangible and intangible assets and liabilities acquired. The Company does not amortize goodwill, but instead tests goodwill for impairment on at least an annual basis. Goodwill was $62.2 million at the end of each years ended December 31, 2015 and 2014. Approximately $36.0 million of the gross Goodwill balance is deductible for income tax purposes. To date, there have been no goodwill impairments. Impairment of Goodwill The Company evaluates the carrying value of goodwill annually as of December 31 and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. The Company applied the simplified goodwill impairment test for the fiscal year ended December 31, 2015, that permits companies to perform a qualitative assessment based on economic, industry and company-specific factors as the initial step in the annual goodwill impairment test for all or selected reporting units. Based on the results of the qualitative assessment, companies are only required to perform Step 1 of the annual impairment test for a reporting unit if the company concludes that it is not more likely than not that the unit’s fair value is less than its carrying amount. To the extent the Company concludes it is more likely than not that a reporting unit’s estimated fair value is less than its carrying amount, the two-step approach is applied. The first step would require a comparison of each reporting unit’s fair value to the respective carrying value. If the carrying value exceeds the fair value, a second step is performed to measure the amount of impairment loss, if any. The Company did not identify any macroeconomic or industry conditions as of December 31, 2015, that would indicate the fair value of the reporting units were more likely than not to be less than their respective carrying values. If circumstances change or events occur to indicate it is more likely than not that the fair value of any reporting units have fallen below their carrying value, the Company would test such reporting unit for impairment. The Company performed its periodic review of its goodwill for impairment as of December 31, 2015 and 2014, and did not identify any impairment as a result of the review. Guarantees and Indemnities The Company accounts for guarantees in accordance with the guarantee accounting topic in the FASB Codification . In general, in our customer contracts, the Company warrants to its customers that its software products will perform in all material respects in accordance with the standard published specifications in effect at the time of delivery of the licensed products to the customer for six months after first use of the licensed products, but no more than 24 months after execution of the license agreement. Additionally, the Company warrants to its customers that services will be performed consistent with generally accepted industry standards or specific service levels through completion of the agreed upon services. If necessary, the Company will provide for the estimated cost of product and service warranties based on specific warranty claims and claim history. However, the Company has not incurred significant recurring expense under product or service warranties. As a result, the Company believes the estimated fair value of these agreements is nominal. Accordingly, the Company has no liabilities recorded for these agreements as of December 31, 2015 and 2014. Segment Information The Company has three reporting segments: Americas, EMEA, and APAC as defined by FASB Codification topic for segment reporting. See Note 7 for discussion of the Company’s reporting segments. Advertising Costs Advertising costs are expensed as incurred and totaled approximately $349,000, $168,000 and $154,000 in 2015, 2014 and 2013, respectively. Advertising costs are included in “Sales and marketing” in the Consolidated Statements of Income. Basic and Diluted Net Income Per Share Basic net income per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for the period presented. Diluted net income per share is computed using net income divided by Weighted Shares and the treasury stock method effect of common equivalent shares (“CESs”) outstanding for each period presented. The following is a reconciliation of the shares used in the computation of net income per share for the years ended December 31, 2015, 2014 and 2013 (in thousands, except per share data – stock split adjusted): Year Ended December 31, 2015 2014 2013 (in thousands, except per share data) Net income $ 103,475 $ 82,000 $ 67,296 Earnings per share: Basic $ 1.41 $ 1.09 $ 0.88 Effect of CESs (0.01 ) (0.01 ) (0.02 ) Diluted $ 1.40 $ 1.08 $ 0.86 Weighted average number of shares: Basic 73,443 74,995 76,664 Effect of CESs 595 846 1,268 Diluted 74,038 75,841 77,932 There were no anti-dilutive CESs in 2015, 2014 and 2013. See Note 2 for further information on those securities. Accumulated Other Comprehensive Income Comprehensive income includes net income, foreign currency translation adjustments, and unrealized gains and losse |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | 2. Equity-Based Compensation Equity Based Compensation Plans As discussed in Note 1, on December 19, 2013, our Board of Directors of the Company approved a four-for-one stock split of the Company’s common stock, effected in the form of a stock dividend. All references to stock award data have been restated to reflect the effect of the stock split for all periods presented. In May 2007, the Manhattan Associates, Inc. 2007 Stock Incentive Plan (the “2007 Plan”) was approved by the shareholders of the Company and subsequently amended in May 2009 and May 2011. The 2007 Plan provides for the grant of stock options, restricted stock, restricted stock units, and stock appreciation rights. Vesting conditions can be service-based or performance-based, or a combination of both. As amended, a maximum of 30,000,000 shares are available for grant under the 2007 Plan. Each stock option or stock appreciation right granted is counted against the maximum share limitation as one share, and each share of restricted stock or restricted stock unit granted (including those that are service based or performance based) counts against the maximum share limitation as two shares. Options and stock appreciation rights cannot have a term exceeding seven years. As of December 31, 2015, there were 11,923,068 shares available for issuance under the amended 2007 Plan. The 2007 Plan is administered by the Compensation Committee of the Board of Directors. The committee has the authority to interpret the provisions thereof. The restricted stock awards contain vesting provisions that are 50% service based and 50% performance based for employee awards and 100% service based for non-employee members of the Board of Directors (“Outside Directors”). The employee awards have a four year vesting period, with the performance portion tied to annual revenue and earnings per share targets. The awards to Outside Directors have a one year vesting period. The Company recognizes compensation cost for service-based restricted awards with graded vesting on a straight-line basis over the entire vesting period, with the amount of compensation cost recognized at any date at least equal to the portion of the grant-date value of the award that is vested at that date. For its performance-based restricted stock awards with graded vesting, the Company recognizes compensation cost on an accelerated basis applying straight-line expensing for each separately vesting portion of each award. In January 2012, in order to simplify equity grant administration, the Company changed its practice of granting restricted stock in favor of granting restricted stock units Restricted Stock and RSU Awards A summary of changes in unvested shares/units of restricted stock for the year ended December 31, 2015 are as follows: Number of Shares/Units Grant Date Fair Value Outstanding at January 1, 2015 1,346,062 $18.43 Granted 579,954 51.99 Vested (647,181) 18.49 Forfeited (73,302) 25.82 Outstanding at December 31, 2015 1,205,533 $34.09 The Company recorded equity-based compensation related to restricted stock and RSUs (collectively “restricted stock awards”) of $14.5 million, $9.7 million, and $7.1 million during the years ended December 31, 2015, 2014 and 2013, respectively. The total fair value of restricted stock awards vested during the years ended December 31, 2015, 2014 and 2013, based on market value at the vesting dates was $31.2 million, $23.9 million, and $26.8 million, respectively. As of December 31, 2015, unrecognized compensation cost related to unvested restricted stock awards totaled $22.7 million and is expected to be recognized over a weighted average period of approximately 3 years. Included in the RSU grants for the year ended December 31, 2015 are 137,294 units that have performance-based vesting criteria. As noted above, the performance criteria are tied to the Company’s 2015 financial performance. As of December 31, 2015, the performance criteria for the fiscal year were met and the associated equity-based compensation expense has been recognized for the portion of the award attributable to 2015 services. Stock Option Awards The Company recorded equity-based compensation related to stock options granted prior to 2011 of $0.2 million during the year ended December 31, 2013. No amounts were recorded for equity-based compensation expense related to stock options during the years ended December 31, 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 year ended December 31, 2015 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 153,764 $4.78 Exercised (150,154) $4.78 Outstanding at December 31, 2015 3,610 $5.06 0.5 $221 Vested or expected to vest at December 31, 2015 3,610 $5.06 0.5 $221 Exercisable at December 31, 2015 3,610 $5.06 0.5 $221 No stock options were granted in 2015, 2014, or 2013. As of December 31, 2015, there is no unrecognized compensation cost related to unvested stock option awards. The total intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013 based on market value at the exercise dates was $8.0 million, $8.9 million, and $13.9 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 3. Income Taxes The Company is subject to future federal, state, and foreign income taxes and has recorded net deferred tax assets on the Consolidated Balance Sheets at December 31, 2015 and 2014. Deferred tax assets and liabilities are determined based on the difference between the financial accounting and tax bases of assets and liabilities. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Accounts receivable $ 2,455 $ 1,308 Accrued liabilities 7,671 8,481 Equity-based compensation 4,304 3,471 Capitalized costs 1,207 1,428 Accrued sales taxes 348 181 Deferred rent 1,344 2,238 State tax credits 4,339 3,848 Foreign subsidiary net operating losses 386 1,094 Valuation allowance (4,916 ) (5,071 ) Other 695 449 $ 17,833 $ 17,427 Deferred tax liabilities: Intangible assets 10,457 9,264 Depreciation 2,763 1,953 13,220 11,217 Net deferred tax assets $ 4,613 $ 6,210 The components of income from domestic and foreign operations before income tax expense for the years ended December 31, 2015, 2014 and 2013 are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Domestic $ 152,040 $ 118,448 $ 94,336 Foreign 10,801 9,550 8,773 Total $ 162,841 $ 127,998 $ 103,109 The components of the income tax provision for the years ended December 31, 2015, 2014 and 2013 are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Current: Federal $ 47,195 $ 37,076 $ 25,682 State 6,308 5,593 3,292 Foreign 4,331 5,034 3,674 57,834 47,703 32,648 Deferred: Federal 1,252 (1,490 ) 2,877 State (300 ) (375 ) (341 ) Foreign 580 160 629 1,532 (1,705 ) 3,165 Total $ 59,366 $ 45,998 $ 35,813 The income tax benefits related to the exercise of stock options were approximately $2.7 million, $3.1 million, and $4.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. As a result of losses in foreign locations, the Company has net operating loss carry-forwards (“NOLs”) of approximately $1.4 million available to offset future income. Approximately $1.3 million of the NOLs expire in 2016 to 2024 and the remainder does not expire. The Company has established a valuation allowance for substantially all of these NOLs because the ability to utilize them is not more likely than not. The Company has tax credit carry-forwards of approximately $6.7 million available to offset future state tax. These tax credit carry-forwards expire in 2017 to 2025. These credits represent a deferred tax asset of $4.3 million after consideration of the federal benefit of state tax deductions. A valuation allowance of $2.8 million has been established for these credits because the ability to use them is not more likely than not. Deferred taxes are not provided for temporary differences of approximately $41.0 million, $35.7 million, and $31.4 million as of December 31, 2015, 2014 and 2013, respectively, representing earnings of non-U.S. subsidiaries that are intended to be permanently reinvested. Those earnings are considered to be indefinitely reinvested; 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 following is a summary of the items that cause recorded income taxes to differ from taxes computed using the statutory federal income tax rate for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31, 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % Effect of: State income tax, net of federal benefit 2.5 2.7 2.0 State credit carryforwards (0.3 ) 0.1 (0.9 ) U.S. federal R&D tax credit (0.7 ) (0.9 ) (2.0 ) Foreign operations (0.4 ) (0.4 ) (0.4 ) Tax contingencies 0.5 (0.4 ) 1.2 Other permanent differences (0.1 ) 0.1 (0.5 ) Change in valuation allowance - (0.3 ) 0.3 Income taxes 36.5 % 35.9 % 34.7 % A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31, 2015, 2014 and 2013 (in thousands): December 31, 2015 2014 2013 Unrecognized tax benefits at January 1, $ (4,455 ) $ (5,122 ) $ (3,375 ) Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during a prior period (1,687 ) (18 ) (804 ) Gross amount of decreases in unrecognized tax benefits as a result of tax positions taken during a prior period 292 508 61 Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during the current period - (481 ) (1,460 ) Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations 61 658 456 Unrecognized tax benefits at December 31, $ (5,789 ) $ (4,455 ) $ (5,122 ) The Company’s unrecognized tax benefits totaled $5.8 million and $4.5 million as of December 31, 2015 and 2014, respectively. Included in these amounts are unrecognized tax benefits totaling $4.0 million and $2.8 million as of December 31, 2015 and 2014, respectively, which, if recognized, would affect the effective tax rate. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within its global operations in income tax expense. For the years ended December 31, 2015, 2014 and 2013, the Company recognized $0.2 million, $0.1 million, and $0.2 million, respectively, of expense for the potential payment of interest and penalties. Accrued interest and penalties were $1.3 million and $0.8 million for the years ended December 31, 2015 and 2014. The Company conducts business globally and, as a result, files income tax returns in the United State federal jurisdiction and in many state and foreign jurisdictions. The Company is generally no longer subject to U.S. federal, state, and local, or non-US income tax examinations for the years before 2012. Due to the expiration of statutes of limitations in multiple jurisdictions globally during 2016, the Company anticipates it is reasonably possible that unrecognized tax benefits may decrease by $0.5 million. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 4. Shareholders’ Equity During 2015, 2014 and 2013, the Company purchased 1,721,457, 2,620,118, and 2,831,520 shares of the Company’s common stock for $101.6 million, $91.1 million, and $59.2 million, respectively, through open market transactions as part of a publicly-announced share repurchase program. In January 2016, our Board of Directors increased the remaining share repurchase authority to $50 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies Leases Rents charged to expense were $6.3 million, $6.3 million, and $5.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. In 2014, the Company amended its Atlanta headquarters lease to obtain additional space and extend the lease term. As part of such lease agreement, the Company will receive reimbursement of $1.3 million from the landlord in 2018 for leasehold improvements. The entire cash rent obligation is being amortized to expense on a straight line basis over the lease term. Aggregate future minimum lease payments under noncancellable operating leases as of December 31, 2015 are as follows (in thousands): Year Ending December 31, 2016 $ 7,003 2017 7,282 2018 6,370 2019 5,211 2020 4,783 Thereafter 21,415 Total minimum payments required $ 52,064 There are no future minimum lease payments under capital leases as of December 31, 2015. Legal and Other Matters 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 proceeding 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 ordinary course legal proceeding or other 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. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | The Company sponsors the Manhattan Associates 401(k) Plan and Trust (the “401(k) Plan”), a qualified profit sharing plan with a 401(k) feature covering substantially all employees of the Company. Under the 401(k) Plan’s deferred compensation arrangement, eligible employees who elect to participate in the 401(k) Plan may contribute up to 60% of eligible compensation up to $18,000, as defined, to the 401(k) Plan. The Internal Revenue Service raised the eligible compensation limit to $265,000 for 2015. Since 2012, the Company has provided a 50% matching contribution up to 6% of eligible compensation being contributed after the participant’s first year of employment. During the years ended December 31, 2015, 2014 and 2013, the Company made matching contributions to the 401(k) Plan of $4.0 million, $3.1 million, and $2.7 million, respectively. |
Reporting Segments
Reporting Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Reporting Segments | 7. Reporting Segments The Company manages the business by three geographic reportable segments: the Americas, EMEA, and 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 reporting segment. The chief executive officer and chief financial officer evaluate performance based on revenue and operating results for each segment. The Americas segment charges royalty fees to the other segments based on software licenses sold by those reporting segments. The royalties, which totaled $3.3 million, $3.0 million, and $3.2 million in 2015, 2014 and 2013, 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. Amortization expense on intangible assets in 2015, 2014 and 2013 was immaterial. In accordance with the segment reporting topic of the FASB Codification, the Company has included a summary of financial information by reportable segment. The following table presents the revenues, expenses, and operating income by reportable segment for the years ended December 31, 2015, 2014 and 2013 (in thousands): Year Ended December 31, 2015 2014 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 65,307 $ 9,566 $ 3,742 $ 78,615 $ 59,502 $ 7,505 $ 4,576 $ 71,583 Services 352,665 58,030 17,383 428,078 301,025 51,440 23,558 376,023 Hardware and other 46,504 2,480 694 49,678 41,437 1,910 1,151 44,498 Total revenue 464,476 70,076 21,819 556,371 401,964 60,855 29,285 492,104 Costs and Expenses: Cost of revenue 190,190 33,483 11,755 235,428 167,631 30,694 14,253 212,578 Operating expenses 133,511 13,781 4,441 151,733 126,570 14,557 4,898 146,025 Depreciation and amortization 6,952 502 310 7,764 5,827 291 259 6,377 Total costs and expenses 330,653 47,766 16,506 394,925 300,028 45,542 19,410 364,980 Operating income $ 133,823 $ 22,310 $ 5,313 $ 161,446 $ 101,936 $ 15,313 $ 9,875 $ 127,124 Year Ended December 31, 2013 Americas EMEA APAC Consolidated Revenue: Software license $ 49,574 $ 7,858 $ 4,984 $ 62,416 Services 254,934 41,020 19,947 315,901 Hardware and other 33,836 1,536 829 36,201 Total revenue 338,344 50,414 25,760 414,518 Costs and Expenses: Cost of revenue 142,006 26,111 13,034 181,151 Operating expenses 107,639 13,707 4,909 126,255 Depreciation and amortization 5,248 308 269 5,825 Total costs and expenses 254,893 40,126 18,212 313,231 Operating income $ 83,451 $ 10,288 $ 7,548 $ 101,287 The following table presents the goodwill, long-lived assets, and total assets by reporting segment as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 As of December 31, 2014 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Goodwill, net $ 54,766 $ 5,504 $ 1,963 $ 62,233 $ 54,766 $ 5,521 $ 1,963 $ 62,250 Long lived assets 25,313 2,398 740 28,451 22,411 2,467 911 25,789 Total assets 300,407 28,790 8,715 337,912 284,304 24,117 9,749 318,170 For the years ended December 31, 2015, 2014 and 2013, we derived revenue from sales to customers outside the United States of approximately $131.3 million, $134.6 million, and $110.8 million, respectively. Our remaining revenue was derived from domestic sales. License revenues related to our warehouse and non-warehouse product groups for the years ended December 31, 2015, 2014 and 2013, are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Warehouse $ 50,097 $ 40,084 $ 39,409 Non-Warehouse 28,518 31,499 23,007 Total software license revenue $ 78,615 $ 71,583 $ 62,416 Our services revenue consists of fees generated from professional services, customer support services and software enhancements related to our software products for the years ended December 31, 2015, 2014 and 2013, are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Professional services $ 304,624 $ 260,058 $ 210,823 Customer support and software enhancements 123,454 115,965 105,078 Total services revenue $ 428,078 $ 376,023 $ 315,901 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 8. Subsequent Events The Company evaluated all subsequent events that occurred after the date of the accompanying financial statements and determined that there were no events or transactions during this subsequent event reporting period which require recognition or disclosure in the Company’s financial statements. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 9. Quarterly Results of Operations (Unaudited) Following is the quarterly results of operations of the Company for the years ended December 31, 2015 and 2014. The unaudited quarterly results have been prepared on substantially the same basis as the audited Consolidated Financial Statements. Quarter Ended Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Mar 31, 2015 Jun 30, 2015 Sep 30, 2015 Dec 31, 2015 (In thousands, except per share data) Statements of Income Data: Revenue: Software license $ 17,107 $ 17,989 $ 16,945 $ 19,542 $ 19,314 $ 19,758 $ 19,130 $ 20,413 Services 86,913 93,519 98,518 97,073 101,203 107,344 112,549 106,982 Hardware and other 9,543 11,022 10,145 13,788 13,006 12,007 10,625 14,040 Total revenue 113,563 122,530 125,608 130,403 133,523 139,109 142,304 141,435 Costs and expenses: Cost of license 1,613 1,848 1,679 1,970 2,906 2,137 2,305 2,590 Cost of services 38,460 41,457 43,689 45,534 44,784 46,464 46,682 46,419 Cost of hardware and other 7,479 9,265 8,496 11,088 10,547 10,163 9,109 11,322 Research and development 11,803 11,867 12,236 13,047 13,556 13,257 13,589 13,457 Sales and marketing 12,020 12,848 11,476 16,273 11,847 11,889 10,904 13,975 General and administrative 10,649 11,256 10,856 11,694 11,238 11,927 14,058 12,036 Depreciation and amortization 1,488 1,489 1,675 1,725 1,781 1,898 1,977 2,108 Total costs and expenses 83,512 90,030 90,107 101,331 96,659 97,735 98,624 101,907 Operating income 30,051 32,500 35,501 29,072 36,864 41,374 43,680 39,528 Other (loss) income, net (233 ) 312 (55 ) 850 262 359 604 170 Income before income taxes 29,818 32,812 35,446 29,922 37,126 41,733 44,284 39,698 Income tax provision 11,106 12,218 13,106 9,568 13,922 15,729 16,387 13,328 Net income $ 18,712 $ 20,594 $ 22,340 $ 20,354 $ 23,204 $ 26,004 $ 27,897 $ 26,370 Basic earnings per share $ 0.25 $ 0.27 $ 0.30 $ 0.27 $ 0.31 $ 0.35 $ 0.38 $ 0.36 Diluted earnings per share $ 0.24 $ 0.27 $ 0.30 $ 0.27 $ 0.31 $ 0.35 $ 0.38 $ 0.36 Shares used in computing basic earnings per share 75,817 75,274 74,687 74,223 73,979 73,618 73,259 72,929 Shares used in computing diluted earnings per share 76,795 76,037 75,466 75,034 74,607 74,126 73,761 73,555 |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
Valuation And Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS (in thousands) Classification: Balance at Beginning of Period Additions Charged to Operations Net Deductions Balance at End of Period Allowance for Doubtful Accounts For the year ended: December 31, 2013 $ 6,235 $ 2,901 $ 5,980 (a) $ 3,156 December 31, 2014 $ 3,156 $ 4,778 $ 3,770 (a) $ 4,164 December 31, 2015 $ 4,164 $ 7,130 $ 4,263 (a) $ 7,031 Deferred Tax Asset Valuation Allowance For the year ended: December 31, 2013 $ 5,965 $ 223 $ - $ 6,188 December 31, 2014 $ 6,188 $ - $ 1,117 (b) $ 5,071 December 31, 2015 $ 5,071 $ - $ 155 (b) $ 4,916 (a) Represents write-offs of accounts, net of recoveries. (b) Represents current year releases credited to expenses and current year reductions due to decreases in net deferred tax assets. |
Organization, Consolidation a18
Organization, Consolidation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash or cash equivalents. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, short- and long-term investments and accounts receivable. The Company maintains cash and cash equivalents and short- and long-term investments with various financial institutions. Amounts held are above the federally insured limit. The Company’s sales are primarily to companies located in the United States, Europe and Asia. The Company performs periodic credit evaluations of its customers’ financial condition and does not require collateral. Accounts receivable are due principally from large U.S., European and Asia Pacific companies under stated contract terms. Accounts receivable, net as of December 31, 2015 for the Americas, EMEA, and APAC companies were $79.5 million, $12.7 million, and $5.2 million, respectively. Accounts receivable, net as of December 31, 2014 for the Americas, EMEA, and APAC companies were $69.2 million, $13.5 million, and $4.1 million, respectively. The Company’s top five customers in aggregate accounted for 8%, 10%, and 11% of total revenue recognized for each of the years ended December 31, 2015, 2014 and 2013, respectively. No single customer accounted for more than 10% of revenue in the years ended December 31, 2015, 2014 and 2013 or for more than 10% of accounts receivable as of December 31, 2015 and 2014. |
Fair Value Measurement | 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 their 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 December 31, 2015, the Company’s cash, cash equivalents, and short-term investments balances were $78.7 million, $39.7 million, and $10.4 million, respectively. Cash equivalents consist of highly liquid money market funds and certificates of deposit. Short-term investments consist of certificates of deposit. At December 31, 2015, the Company has $19.8 million in certificates of deposit in India, which are included in cash equivalents and short-term investments. 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 December 31, 2015, the Company has $30.3 million in money market funds, which are classified as Level 1 and are included in cash and cash equivalents on the Consolidated Balance Sheet. The Company has no long-term investments or investments classified as Level 2 or Level 3. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts, which is based upon an evaluation of historical amounts written-off, the customers’ ability to pay, and general economic conditions; self-insurance accruals; impairment of goodwill; stock based compensation, which is based on the number of awards ultimately expected to vest; and the Company’s effective income tax rate (including the impact of unrecognized tax benefits) and deferred tax assets, which are based upon the Company’s expectations of future taxable income, allowable deductions, and projected tax credits. Actual results will differ from these estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and other financial instruments included in the accompanying Consolidated Balance Sheets approximate their fair values principally due to the short-term maturities of these instruments. Unrealized gains and losses on investments are included as a separate component of “Accumulated other comprehensive loss,” net of any related tax effect, in the Consolidated Balance Sheets. |
Risks Associated with Single Business Line, Technological Advances, and Foreign Operations | Risks Associated with Single Business Line, Technological Advances, and Foreign Operations The Company currently derives a substantial portion of its revenues from sales of its software and related services and hardware. The markets for supply chain commerce solutions are highly competitive, subject to rapid technological change, changing customer needs, frequent new product introductions, and evolving industry standards that may render existing products and services obsolete. As a result, the Company’s position in these markets could be eroded rapidly by unforeseen changes in customer requirements for application features, functions, and technologies. The Company’s growth and future operating results will depend, in part, upon its ability to enhance existing applications and develop and introduce new applications that meet changing customer requirements that respond to competitive products and that achieve market acceptance. Any factor adversely affecting the markets for supply chain commerce solutions could have an adverse effect on the Company’s business, financial condition, results of operations and operating cash flows. The Company’s international business is subject to risks typical of an international business, including, but not limited to, differing economic conditions, changes in political climate, differing tax structures, other regulations and restrictions, and foreign exchange rate volatility. In addition, we have a large development center in Bangalore, India, that does not have a natural in-market revenue hedge to mitigate currency risk to our operating expense in India. Fluctuations in the value of other currencies, particularly the Indian rupee, could significantly affect our revenues, expenses, operating profit and net income. The Company recognized foreign exchange losses of $0.1 million and $0.4 million in 2015 and 2014, respectively, and a foreign exchange rate gain of $0.7 million in 2013. Foreign exchange rate transaction gains and losses are classified in “Other income (loss), net” on the Consolidated Statements of Income. |
Revenue Recognition | Revenue Recognition The Company’s revenue consists of fees from the licensing and hosting of software (collectively included in “Software license” revenue in the 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 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 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 our standard terms or 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 Consolidated Statements of Income. The total amount of expense reimbursement recorded to revenue was $20.2 million, $18.9 million, and $15.3 million for 2015, 2014 and 2013, respectively. |
Deferred Revenue | Deferred Revenue Deferred revenue represents amounts collected prior to having completed performance of professional services, customer support services and software enhancements, and significant remaining obligations under license agreements. The Company generally expects to complete such services or obligations within the next twelve months. |
Returns and Allowances | Returns and Allowances The Company has not experienced significant returns or warranty claims to date and, as a result, has not recorded a provision for the cost of returns and product warranty claims at December 31, 2015 or 2014. The Company records an allowance for doubtful accounts based on the historical experience of write-offs and a detailed assessment of accounts receivable. Additions to the allowance for doubtful accounts generally represent a sales allowance on services revenue, which are recorded to operations as a reduction to services revenue. The total amounts charged to operations were $7.1 million, $4.8 million, and $2.9 million for 2015, 2014 and 2013, respectively. In estimating the allowance for doubtful accounts, management considers the age of the accounts receivable, the Company’s historical write-offs, and the creditworthiness of the customer, among other factors. Should any of these factors change, the estimates made by management will also change accordingly, which could affect the level of the Company’s future allowances. Uncollectible accounts are written off when it is determined that the specific balance is not collectible. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost and consists of furniture, computers, other office equipment, internal use software, and leasehold improvements. The Company depreciates the cost of furniture, computers, other office equipment, and internal use software on a straight-line basis over their estimated useful lives (three to five years for computer software, five years for office equipment, seven years for furniture and fixtures). Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Depreciation expense for property and equipment for the years ended December 31, 2015, 2014 and 2013 was approximately $7.3 million, $6.2 million, and $5.8 million, respectively, and was included in “Depreciation and amortization” in the Consolidated Statements of Income. Property and equipment, at cost, consist of the following (in thousands): December 31, 2015 2014 Office equipment $ 33,912 $ 32,916 Computer software 18,809 17,351 Furniture and fixtures 4,100 3,022 Leasehold improvement 18,119 15,191 Property and equipment, gross 74,940 68,480 Less accumulated depreciation (53,764 ) (51,215 ) Property and equipment, net $ 21,176 $ 17,265 |
Software Development Costs | Software Development Costs Research and development expenses are charged to expense as incurred. For the years ended December 31, 2015, 2014 and 2013, the Company did not capitalize any internal research and development costs because the costs incurred between the attainment of technological feasibility for the related software product through the date when the product was available for general release to customers have been insignificant. The Company determines the amount of development costs capitalizable under the provisions of FASB Codification accounting for costs of computer software to be sold, leased, or marketed. Under this guidance, computer software development costs are charged to R&D expense until technological feasibility is established, after which remaining software production costs are capitalized. The Company has defined technological feasibility as the point in time at which the Company has a detailed program design or a working model of the related product, depending on the type of development efforts, and high-risk development issues have been resolved through end-to-end system testing. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews the values assigned to long-lived assets, including property and certain intangible assets, to determine whether events and circumstances have occurred which indicate that the remaining estimated useful lives may warrant revision or that the remaining balances may not be recoverable. In such reviews, undiscounted cash flows associated with these assets are compared with their carrying value to determine if a write-down to fair value is required. During 2015, 2014 and 2013, the Company did not recognize any impairment charges associated with its long-lived or intangible assets. The evaluation of asset impairment requires management to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment, and actual results may differ from assumed and estimated amounts. |
Goodwill and Impairment of Goodwill | Goodwill and Impairment of Goodwill Goodwill Goodwill represents the excess of purchase price over fair value of net identified tangible and intangible assets and liabilities acquired. The Company does not amortize goodwill, but instead tests goodwill for impairment on at least an annual basis. Goodwill was $62.2 million at the end of each years ended December 31, 2015 and 2014. Approximately $36.0 million of the gross Goodwill balance is deductible for income tax purposes. To date, there have been no goodwill impairments. Impairment of Goodwill The Company evaluates the carrying value of goodwill annually as of December 31 and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. The Company applied the simplified goodwill impairment test for the fiscal year ended December 31, 2015, that permits companies to perform a qualitative assessment based on economic, industry and company-specific factors as the initial step in the annual goodwill impairment test for all or selected reporting units. Based on the results of the qualitative assessment, companies are only required to perform Step 1 of the annual impairment test for a reporting unit if the company concludes that it is not more likely than not that the unit’s fair value is less than its carrying amount. To the extent the Company concludes it is more likely than not that a reporting unit’s estimated fair value is less than its carrying amount, the two-step approach is applied. The first step would require a comparison of each reporting unit’s fair value to the respective carrying value. If the carrying value exceeds the fair value, a second step is performed to measure the amount of impairment loss, if any. The Company did not identify any macroeconomic or industry conditions as of December 31, 2015, that would indicate the fair value of the reporting units were more likely than not to be less than their respective carrying values. If circumstances change or events occur to indicate it is more likely than not that the fair value of any reporting units have fallen below their carrying value, the Company would test such reporting unit for impairment. The Company performed its periodic review of its goodwill for impairment as of December 31, 2015 and 2014, and did not identify any impairment as a result of the review. |
Guarantees and Indemnities | Guarantees and Indemnities The Company accounts for guarantees in accordance with the guarantee accounting topic in the FASB Codification . In general, in our customer contracts, the Company warrants to its customers that its software products will perform in all material respects in accordance with the standard published specifications in effect at the time of delivery of the licensed products to the customer for six months after first use of the licensed products, but no more than 24 months after execution of the license agreement. Additionally, the Company warrants to its customers that services will be performed consistent with generally accepted industry standards or specific service levels through completion of the agreed upon services. If necessary, the Company will provide for the estimated cost of product and service warranties based on specific warranty claims and claim history. However, the Company has not incurred significant recurring expense under product or service warranties. As a result, the Company believes the estimated fair value of these agreements is nominal. Accordingly, the Company has no liabilities recorded for these agreements as of December 31, 2015 and 2014. |
Segment Information | Segment Information The Company has three reporting segments: Americas, EMEA, and APAC as defined by FASB Codification topic for segment reporting. See Note 7 for discussion of the Company’s reporting segments. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and totaled approximately $349,000, $168,000 and $154,000 in 2015, 2014 and 2013, respectively. Advertising costs are included in “Sales and marketing” in the Consolidated Statements of Income. |
Basic and Diluted Net Income Per Share | Basic and Diluted Net Income Per Share Basic net income per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for the period presented. Diluted net income per share is computed using net income divided by Weighted Shares and the treasury stock method effect of common equivalent shares (“CESs”) outstanding for each period presented. The following is a reconciliation of the shares used in the computation of net income per share for the years ended December 31, 2015, 2014 and 2013 (in thousands, except per share data – stock split adjusted): Year Ended December 31, 2015 2014 2013 (in thousands, except per share data) Net income $ 103,475 $ 82,000 $ 67,296 Earnings per share: Basic $ 1.41 $ 1.09 $ 0.88 Effect of CESs (0.01 ) (0.01 ) (0.02 ) Diluted $ 1.40 $ 1.08 $ 0.86 Weighted average number of shares: Basic 73,443 74,995 76,664 Effect of CESs 595 846 1,268 Diluted 74,038 75,841 77,932 There were no anti-dilutive CESs in 2015, 2014 and 2013. See Note 2 for further information on those securities. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Comprehensive income includes net income, foreign currency translation adjustments, and unrealized gains and losses on investments that are excluded from net income and reflected in shareholders’ equity. The entire accumulated other comprehensive income balance as of December 31, 2015 and 2014 represents foreign currency translation adjustments. |
Organization, Consolidation a19
Organization, Consolidation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Property and Equipment | Property and equipment, at cost, consist of the following (in thousands): December 31, 2015 2014 Office equipment $ 33,912 $ 32,916 Computer software 18,809 17,351 Furniture and fixtures 4,100 3,022 Leasehold improvement 18,119 15,191 Property and equipment, gross 74,940 68,480 Less accumulated depreciation (53,764 ) (51,215 ) Property and equipment, net $ 21,176 $ 17,265 |
Reconciliation of Shares in Computation of Net Income Per Share | The following is a reconciliation of the shares used in the computation of net income per share for the years ended December 31, 2015, 2014 and 2013 (in thousands, except per share data – stock split adjusted): Year Ended December 31, 2015 2014 2013 (in thousands, except per share data) Net income $ 103,475 $ 82,000 $ 67,296 Earnings per share: Basic $ 1.41 $ 1.09 $ 0.88 Effect of CESs (0.01 ) (0.01 ) (0.02 ) Diluted $ 1.40 $ 1.08 $ 0.86 Weighted average number of shares: Basic 73,443 74,995 76,664 Effect of CESs 595 846 1,268 Diluted 74,038 75,841 77,932 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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 of restricted stock for the year ended December 31, 2015 are as follows: Number of Shares/Units Grant Date Fair Value Outstanding at January 1, 2015 1,346,062 $18.43 Granted 579,954 51.99 Vested (647,181) 18.49 Forfeited (73,302) 25.82 Outstanding at December 31, 2015 1,205,533 $34.09 |
Summary of Changes in Outstanding Options | A summary of changes in outstanding options for the year ended December 31, 2015 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 153,764 $4.78 Exercised (150,154) $4.78 Outstanding at December 31, 2015 3,610 $5.06 0.5 $221 Vested or expected to vest at December 31, 2015 3,610 $5.06 0.5 $221 Exercisable at December 31, 2015 3,610 $5.06 0.5 $221 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Accounts receivable $ 2,455 $ 1,308 Accrued liabilities 7,671 8,481 Equity-based compensation 4,304 3,471 Capitalized costs 1,207 1,428 Accrued sales taxes 348 181 Deferred rent 1,344 2,238 State tax credits 4,339 3,848 Foreign subsidiary net operating losses 386 1,094 Valuation allowance (4,916 ) (5,071 ) Other 695 449 $ 17,833 $ 17,427 Deferred tax liabilities: Intangible assets 10,457 9,264 Depreciation 2,763 1,953 13,220 11,217 Net deferred tax assets $ 4,613 $ 6,210 |
Components of Income from Domestic and Foreign Operations Before Income Tax Expense | The components of income from domestic and foreign operations before income tax expense for the years ended December 31, 2015, 2014 and 2013 are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Domestic $ 152,040 $ 118,448 $ 94,336 Foreign 10,801 9,550 8,773 Total $ 162,841 $ 127,998 $ 103,109 |
Components of Income Tax Provision | The components of the income tax provision for the years ended December 31, 2015, 2014 and 2013 are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Current: Federal $ 47,195 $ 37,076 $ 25,682 State 6,308 5,593 3,292 Foreign 4,331 5,034 3,674 57,834 47,703 32,648 Deferred: Federal 1,252 (1,490 ) 2,877 State (300 ) (375 ) (341 ) Foreign 580 160 629 1,532 (1,705 ) 3,165 Total $ 59,366 $ 45,998 $ 35,813 |
Reconciliation of Statutory U.S. Federal Rate and Tax Effective Rates | The following is a summary of the items that cause recorded income taxes to differ from taxes computed using the statutory federal income tax rate for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31, 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % Effect of: State income tax, net of federal benefit 2.5 2.7 2.0 State credit carryforwards (0.3 ) 0.1 (0.9 ) U.S. federal R&D tax credit (0.7 ) (0.9 ) (2.0 ) Foreign operations (0.4 ) (0.4 ) (0.4 ) Tax contingencies 0.5 (0.4 ) 1.2 Other permanent differences (0.1 ) 0.1 (0.5 ) Change in valuation allowance - (0.3 ) 0.3 Income taxes 36.5 % 35.9 % 34.7 % |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31, 2015, 2014 and 2013 (in thousands): December 31, 2015 2014 2013 Unrecognized tax benefits at January 1, $ (4,455 ) $ (5,122 ) $ (3,375 ) Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during a prior period (1,687 ) (18 ) (804 ) Gross amount of decreases in unrecognized tax benefits as a result of tax positions taken during a prior period 292 508 61 Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during the current period - (481 ) (1,460 ) Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations 61 658 456 Unrecognized tax benefits at December 31, $ (5,789 ) $ (4,455 ) $ (5,122 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Aggregate Future Minimum Lease Payments Under Non-cancellable Operating Leases | Aggregate future minimum lease payments under noncancellable operating leases as of December 31, 2015 are as follows (in thousands): Year Ending December 31, 2016 $ 7,003 2017 7,282 2018 6,370 2019 5,211 2020 4,783 Thereafter 21,415 Total minimum payments required $ 52,064 |
Reporting Segments (Tables)
Reporting Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |
Revenues, Expenses and Operating Income by Reporting Segment | The following table presents the revenues, expenses, and operating income by reportable segment for the years ended December 31, 2015, 2014 and 2013 (in thousands): Year Ended December 31, 2015 2014 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 65,307 $ 9,566 $ 3,742 $ 78,615 $ 59,502 $ 7,505 $ 4,576 $ 71,583 Services 352,665 58,030 17,383 428,078 301,025 51,440 23,558 376,023 Hardware and other 46,504 2,480 694 49,678 41,437 1,910 1,151 44,498 Total revenue 464,476 70,076 21,819 556,371 401,964 60,855 29,285 492,104 Costs and Expenses: Cost of revenue 190,190 33,483 11,755 235,428 167,631 30,694 14,253 212,578 Operating expenses 133,511 13,781 4,441 151,733 126,570 14,557 4,898 146,025 Depreciation and amortization 6,952 502 310 7,764 5,827 291 259 6,377 Total costs and expenses 330,653 47,766 16,506 394,925 300,028 45,542 19,410 364,980 Operating income $ 133,823 $ 22,310 $ 5,313 $ 161,446 $ 101,936 $ 15,313 $ 9,875 $ 127,124 Year Ended December 31, 2013 Americas EMEA APAC Consolidated Revenue: Software license $ 49,574 $ 7,858 $ 4,984 $ 62,416 Services 254,934 41,020 19,947 315,901 Hardware and other 33,836 1,536 829 36,201 Total revenue 338,344 50,414 25,760 414,518 Costs and Expenses: Cost of revenue 142,006 26,111 13,034 181,151 Operating expenses 107,639 13,707 4,909 126,255 Depreciation and amortization 5,248 308 269 5,825 Total costs and expenses 254,893 40,126 18,212 313,231 Operating income $ 83,451 $ 10,288 $ 7,548 $ 101,287 |
Goodwill, Long-Lived Assets and Total Assets by Reporting Segment | The following table presents the goodwill, long-lived assets, and total assets by reporting segment as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 As of December 31, 2014 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Goodwill, net $ 54,766 $ 5,504 $ 1,963 $ 62,233 $ 54,766 $ 5,521 $ 1,963 $ 62,250 Long lived assets 25,313 2,398 740 28,451 22,411 2,467 911 25,789 Total assets 300,407 28,790 8,715 337,912 284,304 24,117 9,749 318,170 |
License Revenue | |
Segment Reporting Information [Line Items] | |
Revenues | License revenues related to our warehouse and non-warehouse product groups for the years ended December 31, 2015, 2014 and 2013, are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Warehouse $ 50,097 $ 40,084 $ 39,409 Non-Warehouse 28,518 31,499 23,007 Total software license revenue $ 78,615 $ 71,583 $ 62,416 |
Sales Revenue, Services, Net | |
Segment Reporting Information [Line Items] | |
Revenues | Our services revenue consists of fees generated from professional services, customer support services and software enhancements related to our software products for the years ended December 31, 2015, 2014 and 2013, are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Professional services $ 304,624 $ 260,058 $ 210,823 Customer support and software enhancements 123,454 115,965 105,078 Total services revenue $ 428,078 $ 376,023 $ 315,901 |
Quarterly Results of Operatio24
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | The unaudited quarterly results have been prepared on substantially the same basis as the audited Consolidated Financial Statements. Quarter Ended Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Dec 31, 2014 Mar 31, 2015 Jun 30, 2015 Sep 30, 2015 Dec 31, 2015 (In thousands, except per share data) Statements of Income Data: Revenue: Software license $ 17,107 $ 17,989 $ 16,945 $ 19,542 $ 19,314 $ 19,758 $ 19,130 $ 20,413 Services 86,913 93,519 98,518 97,073 101,203 107,344 112,549 106,982 Hardware and other 9,543 11,022 10,145 13,788 13,006 12,007 10,625 14,040 Total revenue 113,563 122,530 125,608 130,403 133,523 139,109 142,304 141,435 Costs and expenses: Cost of license 1,613 1,848 1,679 1,970 2,906 2,137 2,305 2,590 Cost of services 38,460 41,457 43,689 45,534 44,784 46,464 46,682 46,419 Cost of hardware and other 7,479 9,265 8,496 11,088 10,547 10,163 9,109 11,322 Research and development 11,803 11,867 12,236 13,047 13,556 13,257 13,589 13,457 Sales and marketing 12,020 12,848 11,476 16,273 11,847 11,889 10,904 13,975 General and administrative 10,649 11,256 10,856 11,694 11,238 11,927 14,058 12,036 Depreciation and amortization 1,488 1,489 1,675 1,725 1,781 1,898 1,977 2,108 Total costs and expenses 83,512 90,030 90,107 101,331 96,659 97,735 98,624 101,907 Operating income 30,051 32,500 35,501 29,072 36,864 41,374 43,680 39,528 Other (loss) income, net (233 ) 312 (55 ) 850 262 359 604 170 Income before income taxes 29,818 32,812 35,446 29,922 37,126 41,733 44,284 39,698 Income tax provision 11,106 12,218 13,106 9,568 13,922 15,729 16,387 13,328 Net income $ 18,712 $ 20,594 $ 22,340 $ 20,354 $ 23,204 $ 26,004 $ 27,897 $ 26,370 Basic earnings per share $ 0.25 $ 0.27 $ 0.30 $ 0.27 $ 0.31 $ 0.35 $ 0.38 $ 0.36 Diluted earnings per share $ 0.24 $ 0.27 $ 0.30 $ 0.27 $ 0.31 $ 0.35 $ 0.38 $ 0.36 Shares used in computing basic earnings per share 75,817 75,274 74,687 74,223 73,979 73,618 73,259 72,929 Shares used in computing diluted earnings per share 76,795 76,037 75,466 75,034 74,607 74,126 73,761 73,555 |
Organization, Consolidation a25
Organization, Consolidation and Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Thousands | Dec. 19, 2013 | Dec. 31, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)CustomerSegment$ / sharesshares | Dec. 31, 2014USD ($)Customer$ / sharesshares | Dec. 31, 2013USD ($)Customershares | May. 15, 2014shares |
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Common stock split ratio | 4 | ||||||||||||
Additional shares issued as a result of stock split | shares | 3 | ||||||||||||
Stock split, additional shares distribution date | Jan. 10, 2014 | ||||||||||||
Stock Split, start trading date at a new split-adjusted price | Jan. 13, 2014 | ||||||||||||
Common stock, shares authorized | shares | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 100,000,000 | ||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Percentage of revenue accounted for by top 5 customers | 8.00% | 10.00% | 11.00% | ||||||||||
Number of customers accounting for more than 10% of revenue | Customer | 0 | 0 | 0 | ||||||||||
Number of customers accounting for more than 10% of accounts receivable | Customer | 0 | 0 | |||||||||||
Cash balance | $ 78,700 | $ 78,700 | |||||||||||
Cash equivalents | 39,700 | 39,700 | |||||||||||
Short-term investments | 10,344 | $ 8,730 | 10,344 | $ 8,730 | |||||||||
Foreign exchange rate gains (losses) | (100) | (400) | $ 700 | ||||||||||
Expense reimbursement recorded to revenue | 20,200 | 18,900 | 15,300 | ||||||||||
Allowance for doubtful accounts recorded to operations | 7,100 | 4,800 | 2,900 | ||||||||||
Depreciation expense | 2,108 | $ 1,977 | $ 1,898 | $ 1,781 | 1,725 | $ 1,675 | $ 1,489 | $ 1,488 | 7,764 | 6,377 | 5,825 | ||
Goodwill, net | 62,233 | 62,250 | 62,233 | 62,250 | |||||||||
Gross goodwill deductible for income tax purposes | 36,000 | $ 36,000 | |||||||||||
Customer's license amortization period | 5 years | ||||||||||||
Number of reporting segments | Segment | 3 | ||||||||||||
Advertising costs | $ 349 | $ 168 | $ 154 | ||||||||||
Options to purchase shares of common stock outstanding that were not included in the computation of diluted earnings per share | shares | 0 | 0 | 0 | ||||||||||
Office Equipment | |||||||||||||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 5 years | ||||||||||||
Furniture and Fixtures | |||||||||||||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 7 years | ||||||||||||
Leasehold Improvements | |||||||||||||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Leasehold improvements useful life | Lesser of their useful lives or the term of the lease. | ||||||||||||
Computer Software | Minimum | |||||||||||||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 3 years | ||||||||||||
Computer Software | Maximum | |||||||||||||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property and equipment estimated useful life | 5 years | ||||||||||||
Money Market Funds | |||||||||||||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Available-for-sale securities | 30,300 | $ 30,300 | |||||||||||
Americas | |||||||||||||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Accounts receivable, net | 79,500 | 69,200 | 79,500 | $ 69,200 | |||||||||
Depreciation expense | 6,952 | 5,827 | $ 5,248 | ||||||||||
Goodwill, net | 54,766 | 54,766 | 54,766 | 54,766 | |||||||||
EMEA | |||||||||||||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Accounts receivable, net | 12,700 | 13,500 | 12,700 | 13,500 | |||||||||
Depreciation expense | 502 | 291 | 308 | ||||||||||
Goodwill, net | 5,504 | 5,521 | 5,504 | 5,521 | |||||||||
APAC | |||||||||||||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Accounts receivable, net | 5,200 | 4,100 | 5,200 | 4,100 | |||||||||
Depreciation expense | 310 | 259 | $ 269 | ||||||||||
Goodwill, net | 1,963 | $ 1,963 | 1,963 | $ 1,963 | |||||||||
India | |||||||||||||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Certificates of deposit | $ 19,800 | $ 19,800 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 74,940 | $ 68,480 |
Less accumulated depreciation | (53,764) | (51,215) |
Property and equipment, net | 21,176 | 17,265 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 33,912 | 32,916 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,100 | 3,022 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 18,119 | 15,191 |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 18,809 | $ 17,351 |
Reconciliation of Net Income an
Reconciliation of Net Income and Shares 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 | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 26,370 | $ 27,897 | $ 26,004 | $ 23,204 | $ 20,354 | $ 22,340 | $ 20,594 | $ 18,712 | $ 103,475 | $ 82,000 | $ 67,296 |
Earnings per share: | |||||||||||
Basic | $ 0.36 | $ 0.38 | $ 0.35 | $ 0.31 | $ 0.27 | $ 0.30 | $ 0.27 | $ 0.25 | $ 1.41 | $ 1.09 | $ 0.88 |
Effect of CESs | (0.01) | (0.01) | (0.02) | ||||||||
Diluted | $ 0.36 | $ 0.38 | $ 0.35 | $ 0.31 | $ 0.27 | $ 0.30 | $ 0.27 | $ 0.24 | $ 1.40 | $ 1.08 | $ 0.86 |
Weighted average number of shares: | |||||||||||
Basic | 72,929 | 73,259 | 73,618 | 73,979 | 74,223 | 74,687 | 75,274 | 75,817 | 73,443 | 74,995 | 76,664 |
Effect of CESs | 595 | 846 | 1,268 | ||||||||
Diluted | 73,555 | 73,761 | 74,126 | 74,607 | 75,034 | 75,466 | 76,037 | 76,795 | 74,038 | 75,841 | 77,932 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) | Dec. 19, 2013 | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | May. 19, 2011shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock split ratio | 4 | ||||
Restricted stock expense | $ | $ 14,500,000 | $ 9,700,000 | $ 7,100,000 | ||
Stock option expense | $ | $ 0 | $ 0 | $ 200,000 | ||
Stock options granted | 0 | 0 | 0 | ||
Unrecognized compensation cost related to unvested stock options | $ | $ 0 | ||||
Total intrinsic value of options exercised | $ | 8,000,000 | $ 8,900,000 | $ 13,900,000 | ||
Restricted Stock and Restricted Stock Unit | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Total fair value of restricted stock awards vested | $ | 31,200,000 | $ 23,900,000 | $ 26,800,000 | ||
Unrecognized compensation cost related to unvested restricted stock | $ | $ 22,700,000 | ||||
Unrecognized compensation cost related to unvested award, period of recognition | 3 years | ||||
Number of restricted units granted in the period | 579,954 | ||||
Stock Compensation Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of restricted stock and restricted stock units awarded for service based vesting | 50.00% | ||||
Percentage of restricted stock and restricted stock units awarded for performance based vesting | 50.00% | ||||
Award vesting period (years) | 4 years | ||||
Non Employee Director Restricted Equity Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of restricted stock and restricted stock units awarded for service based vesting | 100.00% | ||||
Award vesting period (years) | 1 year | ||||
Performance Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of restricted units granted in the period | 137,294 | ||||
2007 Stock Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Maximum shares available for grant | 30,000,000 | ||||
Shares available for issuance | 11,923,068 | ||||
2007 Stock Incentive Plan | Stock Options and Stock Appreciation Rights | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted share count against share available | 1 | ||||
2007 Stock Incentive Plan | Stock Options and Stock Appreciation Rights | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award term (years) | 7 years | ||||
2007 Stock Incentive Plan | Restricted Stock and Restricted Stock Unit | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted share count against share available | 2 |
Summary of Changes in Unvested
Summary of Changes in Unvested Shares/Units of Restricted Stock (Detail) - Restricted Stock and Restricted Stock Unit | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares/units, Outstanding at January 1, 2015 | shares | 1,346,062 |
Number of shares/units, Granted | shares | 579,954 |
Number of shares/units, Vested | shares | (647,181) |
Number of shares/units, Forfeited | shares | (73,302) |
Number of shares/units, Outstanding at December 31, 2015 | shares | 1,205,533 |
Grant date fair value, Outstanding at January 1, 2015 | $ / shares | $ 18.43 |
Grant date fair value, Granted | $ / shares | 51.99 |
Grant date fair value, Vested | $ / shares | 18.49 |
Grant date fair value, Forfeited | $ / shares | 25.82 |
Grant date fair value, Outstanding at December 31, 2015 | $ / shares | $ 34.09 |
Summary of Changes in Outstandi
Summary of Changes in Outstanding Options (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number of Shares | |
Number of Shares, Outstanding at January 1, 2015 | shares | 153,764 |
Number of Shares, Exercised | shares | (150,154) |
Number of Shares, Outstanding at December 31, 2015 | shares | 3,610 |
Number of Shares, Vested or expected to vest at December 31, 2015 | shares | 3,610 |
Number of Shares, Exercisable at December 31, 2015 | shares | 3,610 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, Outstanding at January 1, 2015 | $ / shares | $ 4.78 |
Weighted Average Exercise Price, Exercised | $ / shares | 4.78 |
Weighted Average Exercise Price, Outstanding at December 31, 2015 | $ / shares | 5.06 |
Weighted Average Exercise Price, Vested or expected to vest at December 31, 2015 | $ / shares | 5.06 |
Weighted Average Exercise Price, Exercisable at December 31, 2015 | $ / shares | $ 5.06 |
Weighted Average Remaining Contractual Term/Average Intrinsic Value, Outstanding | |
Weighted Average Remaining Contractual Term, Outstanding at December 31, 2015 | 6 months |
Weighted Average Remaining Contractual Term, Vested or expected to vest at December 31, 2015 | 6 months |
Weighted Average Remaining Contractual Term, Exercisable at December 31, 2015 | 6 months |
Aggregate Intrinsic Value, Outstanding at December 31, 2015 | $ | $ 221 |
Aggregate Intrinsic Value, Vested or expected to vest at December 31, 2015 | $ | 221 |
Aggregate Intrinsic Value, Exercisable at December 31, 2015 | $ | $ 221 |
Components of Deferred Tax Asse
Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Accounts receivable | $ 2,455 | $ 1,308 |
Accrued liabilities | 7,671 | 8,481 |
Equity-based compensation | 4,304 | 3,471 |
Capitalized costs | 1,207 | 1,428 |
Accrued sales taxes | 348 | 181 |
Deferred rent | 1,344 | 2,238 |
State tax credits | 4,339 | 3,848 |
Foreign subsidiary net operating losses | 386 | 1,094 |
Valuation allowance | (4,916) | (5,071) |
Other | 695 | 449 |
Deferred Tax Assets, Net of Valuation Allowance, Total | 17,833 | 17,427 |
Deferred tax liabilities: | ||
Intangible assets | 10,457 | 9,264 |
Depreciation | 2,763 | 1,953 |
Deferred Tax Liabilities, Net, Total | 13,220 | 11,217 |
Net deferred tax assets | $ 4,613 | $ 6,210 |
Components of Income from Domes
Components of Income from Domestic and Foreign Operations Before Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 152,040 | $ 118,448 | $ 94,336 | ||||||||
Foreign | 10,801 | 9,550 | 8,773 | ||||||||
Income before income taxes | $ 39,698 | $ 44,284 | $ 41,733 | $ 37,126 | $ 29,922 | $ 35,446 | $ 32,812 | $ 29,818 | $ 162,841 | $ 127,998 | $ 103,109 |
Components of Income Tax Provis
Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||||||||||
Federal | $ 47,195 | $ 37,076 | $ 25,682 | ||||||||
State | 6,308 | 5,593 | 3,292 | ||||||||
Foreign | 4,331 | 5,034 | 3,674 | ||||||||
Current Income Tax Expense (Benefit), Total | 57,834 | 47,703 | 32,648 | ||||||||
Deferred: | |||||||||||
Federal | 1,252 | (1,490) | 2,877 | ||||||||
State | (300) | (375) | (341) | ||||||||
Foreign | 580 | 160 | 629 | ||||||||
Deferred Income Tax Expense (Benefit), Total | 1,532 | (1,705) | 3,165 | ||||||||
Total | $ 13,328 | $ 16,387 | $ 15,729 | $ 13,922 | $ 9,568 | $ 13,106 | $ 12,218 | $ 11,106 | $ 59,366 | $ 45,998 | $ 35,813 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | ||||
Income tax benefits related to exercise of stock options | $ 2,700 | $ 3,100 | $ 4,800 | |
Net operating loss carry-forwards | 1,400 | |||
Tax credit carry-forwards | 6,700 | |||
Tax credit carry-forwards deferred tax asset | 4,339 | 3,848 | ||
Tax credit carry-forwards, valuation allowance | 2,800 | |||
Earnings of non-U.S. subsidiaries intended to be permanently reinvested | 41,000 | 35,700 | 31,400 | |
Unrecognized tax benefits | 5,789 | 4,455 | 5,122 | $ 3,375 |
Unrecognized tax benefits which, if recognized, would affect the effective tax rate | 4,000 | 2,800 | ||
Accrued interest and penalties recognized related to unrecognized tax benefits | 200 | 100 | $ 200 | |
Accrued interest and penalties | 1,300 | $ 800 | ||
Decrease in unrecognized tax benefits in 2013, reasonably possible amount | $ 500 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, expiration dates | 2,016 | |||
Tax credit carry-forwards, expiration dates | 2,017 | |||
Maximum | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, expiration dates | 2,024 | |||
Tax credit carry-forwards, expiration dates | 2,025 | |||
NOLs expire in 2015 to 2020 | ||||
Income Taxes [Line Items] | ||||
Net operating loss carry-forwards | $ 1,300 |
Reconciliation of Statutory U.S
Reconciliation of Statutory U.S. Federal Rate and Tax Effective Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
State income tax, net of federal benefit | 2.50% | 2.70% | 2.00% |
State credit carryforwards | (0.30%) | 0.10% | (0.90%) |
U.S. federal R&D tax credit | (0.70%) | (0.90%) | (2.00%) |
Foreign operations | (0.40%) | (0.40%) | (0.40%) |
Tax contingencies | 0.50% | (0.40%) | 1.20% |
Other permanent differences | (0.10%) | 0.10% | (0.50%) |
Change in valuation allowance | (0.30%) | 0.30% | |
Income taxes | 36.50% | 35.90% | 34.70% |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits at January 1, | $ (4,455) | $ (5,122) | $ (3,375) |
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during a prior period | (1,687) | (18) | (804) |
Gross amount of decreases in unrecognized tax benefits as a result of tax positions taken during a prior period | 292 | 508 | 61 |
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during the current period | (481) | (1,460) | |
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | 61 | 658 | 456 |
Unrecognized tax benefits at December 31, | $ (5,789) | $ (4,455) | $ (5,122) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2016 | |
Stockholders Equity Note [Line Items] | ||||
Common stock shares purchased under publicly-announced share repurchase program | 1,721,457 | 2,620,118 | 2,831,520 | |
Common stock purchased under publicly-announced share repurchase program, value | $ 101,600,000 | $ 91,100,000 | $ 59,200,000 | |
Subsequent Event | ||||
Stockholders Equity Note [Line Items] | ||||
Stock Repurchase program, authorized amount | $ 50,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rents charged to expense | $ 6,300,000 | $ 6,300,000 | $ 5,900,000 |
Leasehold improvement receivable in 2018 | 1,300,000 | ||
Future minimum lease payments under capital leases | $ 0 |
Aggregate Future Minimum Lease
Aggregate Future Minimum Lease Payments Under Noncancellable Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,016 | $ 7,003 |
2,017 | 7,282 |
2,018 | 6,370 |
2,019 | 5,211 |
2,020 | 4,783 |
Thereafter | 21,415 |
Total minimum payments required | $ 52,064 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Maximum contribution percentage of eligible compensation by eligible employees toward 401(k) plan | 60.00% | ||
Maximum contribution amount that employee can contribute to 401(k) plan | $ 18,000 | ||
Eligible compensation limit | 265,000 | ||
Defined benefit plan percentage of employer matching contribution on 6% of employee compensation | 50.00% | ||
Defined benefit plan employer matching contribution | $ 4,000,000 | $ 3,100,000 | $ 2,700,000 |
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of employees' eligible compensation for employer matching contribution | 6.00% |
Reporting Segments - Additional
Reporting Segments - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 3 | ||
Revenue from sales to customers outside the United States | $ 131.3 | $ 134.6 | $ 110.8 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Americas royalty fees | $ 3.3 | $ 3 | $ 3.2 |
Revenues, Expenses and Operatin
Revenues, Expenses and Operating Income by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Software license | $ 20,413 | $ 19,130 | $ 19,758 | $ 19,314 | $ 19,542 | $ 16,945 | $ 17,989 | $ 17,107 | $ 78,615 | $ 71,583 | $ 62,416 |
Services | 106,982 | 112,549 | 107,344 | 101,203 | 97,073 | 98,518 | 93,519 | 86,913 | 428,078 | 376,023 | 315,901 |
Hardware and other | 14,040 | 10,625 | 12,007 | 13,006 | 13,788 | 10,145 | 11,022 | 9,543 | 49,678 | 44,498 | 36,201 |
Total revenue | 141,435 | 142,304 | 139,109 | 133,523 | 130,403 | 125,608 | 122,530 | 113,563 | 556,371 | 492,104 | 414,518 |
Cost of revenue | 235,428 | 212,578 | 181,151 | ||||||||
Operating expenses | 151,733 | 146,025 | 126,255 | ||||||||
Depreciation and amortization | 2,108 | 1,977 | 1,898 | 1,781 | 1,725 | 1,675 | 1,489 | 1,488 | 7,764 | 6,377 | 5,825 |
Total costs and expenses | 101,907 | 98,624 | 97,735 | 96,659 | 101,331 | 90,107 | 90,030 | 83,512 | 394,925 | 364,980 | 313,231 |
Operating income | $ 39,528 | $ 43,680 | $ 41,374 | $ 36,864 | $ 29,072 | $ 35,501 | $ 32,500 | $ 30,051 | 161,446 | 127,124 | 101,287 |
Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Software license | 65,307 | 59,502 | 49,574 | ||||||||
Services | 352,665 | 301,025 | 254,934 | ||||||||
Hardware and other | 46,504 | 41,437 | 33,836 | ||||||||
Total revenue | 464,476 | 401,964 | 338,344 | ||||||||
Cost of revenue | 190,190 | 167,631 | 142,006 | ||||||||
Operating expenses | 133,511 | 126,570 | 107,639 | ||||||||
Depreciation and amortization | 6,952 | 5,827 | 5,248 | ||||||||
Total costs and expenses | 330,653 | 300,028 | 254,893 | ||||||||
Operating income | 133,823 | 101,936 | 83,451 | ||||||||
EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Software license | 9,566 | 7,505 | 7,858 | ||||||||
Services | 58,030 | 51,440 | 41,020 | ||||||||
Hardware and other | 2,480 | 1,910 | 1,536 | ||||||||
Total revenue | 70,076 | 60,855 | 50,414 | ||||||||
Cost of revenue | 33,483 | 30,694 | 26,111 | ||||||||
Operating expenses | 13,781 | 14,557 | 13,707 | ||||||||
Depreciation and amortization | 502 | 291 | 308 | ||||||||
Total costs and expenses | 47,766 | 45,542 | 40,126 | ||||||||
Operating income | 22,310 | 15,313 | 10,288 | ||||||||
APAC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Software license | 3,742 | 4,576 | 4,984 | ||||||||
Services | 17,383 | 23,558 | 19,947 | ||||||||
Hardware and other | 694 | 1,151 | 829 | ||||||||
Total revenue | 21,819 | 29,285 | 25,760 | ||||||||
Cost of revenue | 11,755 | 14,253 | 13,034 | ||||||||
Operating expenses | 4,441 | 4,898 | 4,909 | ||||||||
Depreciation and amortization | 310 | 259 | 269 | ||||||||
Total costs and expenses | 16,506 | 19,410 | 18,212 | ||||||||
Operating income | $ 5,313 | $ 9,875 | $ 7,548 |
Goodwill, Long-Lived Assets and
Goodwill, Long-Lived Assets and Total Assets by Reporting Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Goodwill, net | $ 62,233 | $ 62,250 |
Long lived assets | 28,451 | 25,789 |
Total assets | 337,912 | 318,170 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Goodwill, net | 54,766 | 54,766 |
Long lived assets | 25,313 | 22,411 |
Total assets | 300,407 | 284,304 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Goodwill, net | 5,504 | 5,521 |
Long lived assets | 2,398 | 2,467 |
Total assets | 28,790 | 24,117 |
APAC | ||
Segment Reporting Information [Line Items] | ||
Goodwill, net | 1,963 | 1,963 |
Long lived assets | 740 | 911 |
Total assets | $ 8,715 | $ 9,749 |
License Revenues of Warehouse a
License Revenues of Warehouse and Non-Warehouse Product Groups (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer [Line Items] | |||||||||||
Software license revenue | $ 20,413 | $ 19,130 | $ 19,758 | $ 19,314 | $ 19,542 | $ 16,945 | $ 17,989 | $ 17,107 | $ 78,615 | $ 71,583 | $ 62,416 |
Warehouse Product Groups | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Software license revenue | 50,097 | 40,084 | 39,409 | ||||||||
Non-warehouse Product Groups | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Software license revenue | $ 28,518 | $ 31,499 | $ 23,007 |
Services Revenues from Professi
Services Revenues from Professional Services and Customer Support and Software Enhancements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | |||||||||||
Professional services | $ 304,624 | $ 260,058 | $ 210,823 | ||||||||
Customer support and software enhancements | 123,454 | 115,965 | 105,078 | ||||||||
Total services revenue | $ 106,982 | $ 112,549 | $ 107,344 | $ 101,203 | $ 97,073 | $ 98,518 | $ 93,519 | $ 86,913 | $ 428,078 | $ 376,023 | $ 315,901 |
Quarterly Results of Operatio46
Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | |||||||||||
Software license | $ 20,413 | $ 19,130 | $ 19,758 | $ 19,314 | $ 19,542 | $ 16,945 | $ 17,989 | $ 17,107 | $ 78,615 | $ 71,583 | $ 62,416 |
Services | 106,982 | 112,549 | 107,344 | 101,203 | 97,073 | 98,518 | 93,519 | 86,913 | 428,078 | 376,023 | 315,901 |
Hardware and other | 14,040 | 10,625 | 12,007 | 13,006 | 13,788 | 10,145 | 11,022 | 9,543 | 49,678 | 44,498 | 36,201 |
Total revenue | 141,435 | 142,304 | 139,109 | 133,523 | 130,403 | 125,608 | 122,530 | 113,563 | 556,371 | 492,104 | 414,518 |
Costs and expenses: | |||||||||||
Cost of license | 2,590 | 2,305 | 2,137 | 2,906 | 1,970 | 1,679 | 1,848 | 1,613 | 9,938 | 7,110 | 8,724 |
Cost of services | 46,419 | 46,682 | 46,464 | 44,784 | 45,534 | 43,689 | 41,457 | 38,460 | 184,349 | 169,140 | 142,236 |
Cost of hardware and other | 11,322 | 9,109 | 10,163 | 10,547 | 11,088 | 8,496 | 9,265 | 7,479 | 41,141 | 36,328 | 30,191 |
Research and development | 13,457 | 13,589 | 13,257 | 13,556 | 13,047 | 12,236 | 11,867 | 11,803 | 53,859 | 48,953 | 44,549 |
Sales and marketing | 13,975 | 10,904 | 11,889 | 11,847 | 16,273 | 11,476 | 12,848 | 12,020 | 48,615 | 52,617 | 44,559 |
General and administrative | 12,036 | 14,058 | 11,927 | 11,238 | 11,694 | 10,856 | 11,256 | 10,649 | 49,259 | 44,455 | 37,147 |
Depreciation and amortization | 2,108 | 1,977 | 1,898 | 1,781 | 1,725 | 1,675 | 1,489 | 1,488 | 7,764 | 6,377 | 5,825 |
Total costs and expenses | 101,907 | 98,624 | 97,735 | 96,659 | 101,331 | 90,107 | 90,030 | 83,512 | 394,925 | 364,980 | 313,231 |
Operating income | 39,528 | 43,680 | 41,374 | 36,864 | 29,072 | 35,501 | 32,500 | 30,051 | 161,446 | 127,124 | 101,287 |
Other (loss) income, net | 170 | 604 | 359 | 262 | 850 | (55) | 312 | (233) | 64 | (394) | 655 |
Income before income taxes | 39,698 | 44,284 | 41,733 | 37,126 | 29,922 | 35,446 | 32,812 | 29,818 | 162,841 | 127,998 | 103,109 |
Income tax provision | 13,328 | 16,387 | 15,729 | 13,922 | 9,568 | 13,106 | 12,218 | 11,106 | 59,366 | 45,998 | 35,813 |
Net income | $ 26,370 | $ 27,897 | $ 26,004 | $ 23,204 | $ 20,354 | $ 22,340 | $ 20,594 | $ 18,712 | $ 103,475 | $ 82,000 | $ 67,296 |
Basic earnings per share | $ 0.36 | $ 0.38 | $ 0.35 | $ 0.31 | $ 0.27 | $ 0.30 | $ 0.27 | $ 0.25 | $ 1.41 | $ 1.09 | $ 0.88 |
Diluted earnings per share | $ 0.36 | $ 0.38 | $ 0.35 | $ 0.31 | $ 0.27 | $ 0.30 | $ 0.27 | $ 0.24 | $ 1.40 | $ 1.08 | $ 0.86 |
Shares used in computing basic earnings per share | 72,929 | 73,259 | 73,618 | 73,979 | 74,223 | 74,687 | 75,274 | 75,817 | 73,443 | 74,995 | 76,664 |
Shares used in computing diluted earnings per share | 73,555 | 73,761 | 74,126 | 74,607 | 75,034 | 75,466 | 76,037 | 76,795 | 74,038 | 75,841 | 77,932 |
SCHEDULE II - Valuation and Qua
SCHEDULE II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Allowance for Doubtful Accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 4,164 | $ 3,156 | $ 6,235 | |
Additions Charged to Operations | 7,130 | 4,778 | 2,901 | |
Net Deductions | [1] | 4,263 | 3,770 | 5,980 |
Balance at End of Period | 7,031 | 4,164 | 3,156 | |
Deferred Tax Asset Valuation Allowance | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 5,071 | 6,188 | 5,965 | |
Additions Charged to Operations | 223 | |||
Net Deductions | [2] | 155 | 1,117 | |
Balance at End of Period | $ 4,916 | $ 5,071 | $ 6,188 | |
[1] | Represents write-offs of accounts, net of recoveries. | |||
[2] | Represents current year releases credited to expenses and current year reductions due to decreases in net deferred tax assets. |