Manhattan Associates (MANH) 10-Q 22 Apr 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 18, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	MANH
Entity Registrant Name	MANHATTAN ASSOCIATES INC
Entity Central Index Key	1,056,696
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		72,137,015

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 105,812	$ 118,416
Short-term investments	8,909	10,344
Accounts receivable, net of allowance of $5,999 and $7,031, respectively	84,119	97,379
Prepaid expenses and other current assets	11,365	10,772
Total current assets	210,205	236,911
Property and equipment, net	20,992	21,176
Goodwill, net	62,239	62,233
Deferred income taxes	2,915	4,648
Other assets	6,821	7,275
Total assets	303,172	332,243
Current liabilities:
Accounts payable	10,111	11,219
Accrued compensation and benefits	20,424	29,284
Accrued and other liabilities	12,271	13,853
Deferred revenue	70,201	68,757
Income taxes payable	6,110	4,072
Total current liabilities	119,117	127,185
Other non-current liabilities	$ 9,089	$ 9,566
Shareholders' equity:
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2016 and 2015
Common stock, $0.01 par value; 200,000,000 shares authorized; 72,136,663 and 72,766,383 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	$ 721	$ 728
Retained earnings	186,496	207,070
Accumulated other comprehensive loss	(12,251)	(12,306)
Total shareholders' equity	174,966	195,492
Total liabilities and shareholders' equity	$ 303,172	$ 332,243

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 5,999	$ 7,031
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	72,136,663	72,766,383
Common stock, shares outstanding	72,136,663	72,766,383

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Software license	$ 20,607	$ 19,314
Services	116,263	101,203
Hardware and other	12,990	13,006
Total revenue	149,860	133,523
Costs and expenses:
Cost of license	3,152	2,906
Cost of services	51,904	44,784
Cost of hardware and other	9,757	10,547
Research and development	14,706	13,556
Sales and marketing	12,588	11,847
General and administrative	12,448	11,238
Depreciation and amortization	2,206	1,781
Total costs and expenses	106,761	96,659
Operating income	43,099	36,864
Other income, net	520	262
Income before income taxes	43,619	37,126
Income tax provision	16,139	13,922
Net income	$ 27,480	$ 23,204
Basic earnings per share	$ 0.38	$ 0.31
Diluted earnings per share	$ 0.38	$ 0.31
Weighted average number of shares:
Basic	72,630	73,979
Diluted	73,020	74,607

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 27,480	$ 23,204
Foreign currency translation adjustment	55	(371)
Comprehensive income	$ 27,535	$ 22,833

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities:
Net income	$ 27,480	$ 23,204
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,206	1,781
Equity-based compensation	4,688	3,078
Loss (Gain) on disposal of equipment	3	(7)
Tax benefit of stock awards exercised/vested	5,023	6,601
Excess tax benefits from equity-based compensation	(5,023)	(6,579)
Deferred income taxes	1,747	1,730
Unrealized foreign currency gain	(61)	(97)
Changes in operating assets and liabilities:
Accounts receivable, net	13,554	2,440
Other assets	(228)	(2,024)
Accounts payable, accrued and other liabilities	(12,186)	(13,489)
Income taxes	2,044	(1,119)
Deferred revenue	1,179	(344)
Net cash provided by operating activities	40,426	15,175
Investing activities:
Purchase of property and equipment	(1,906)	(3,098)
Net maturities (purchases) of investments	1,418	(1,279)
Net cash used in investing activities	(488)	(4,377)
Financing activities:
Purchase of common stock	(57,791)	(36,033)
Proceeds from issuance of common stock from options exercised	18	278
Excess tax benefits from equity-based compensation	5,023	6,579
Net cash used in financing activities	(52,750)	(29,176)
Foreign currency impact on cash	208	(241)
Net change in cash and cash equivalents	(12,604)	(18,619)
Cash and cash equivalents at beginning of period	118,416	115,708
Cash and cash equivalents at end of period	$ 105,812	$ 97,089

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Manhattan Associates, Inc. and its subsidiaries (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information, with the instructions to Form 10-Q and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, these condensed consolidated financial statements contain all normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position at March 31, 2016, the results of operations for the three months ended March 31, 2016 and 2015, and cash flows for the three months ended March 31, 2016 and 2015. The results for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Company’s audited consolidated financial statements and management’s discussion and analysis included in the Company’s annual report on Form 10-K for the year ended December 31, 2015. Principles of Consolidation The accompanying condensed consolidated financial statements include the Company’s accounts and the accounts of its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Changes in Presentation of Comparative Financial Statements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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, and may be applied either prospectively or retrospectively. We adopted this guidance in the first three months ended March 31, 2016 reporting on a retrospective basis. Accordingly, we reclassified the current deferred taxes to noncurrent on our December 31, 2015 condensed consolidated balance sheet, that increased noncurrent deferred tax assets $4.6 million and decreased noncurrent deferred tax liabilities $5.7 million to conform with the current presentation.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2016
Revenue Recognition [Abstract]
Revenue Recognition	2. Revenue Recognition The Company’s revenue consists of fees from the licensing and hosting of software (collectively included in “Software license” revenue in the Condensed Consolidated Statements of Income), fees from implementation and training services (collectively, “professional services”) and customer support services and software enhancements (collectively with professional services revenue included in “Services” revenue in the Condensed Consolidated Statements of Income), and sales of hardware and other revenue, which consists of reimbursements of out-of-pocket expenses incurred in connection with our professional services (collectively included in “Hardware and other” revenue in the Condensed Consolidated Statements of Income). All revenue is recognized net of any related sales taxes. The Company recognizes license revenue when the following criteria are met: (1) a signed contract is obtained covering all elements of the arrangement, (2) delivery of the product has occurred, (3) the license fee is fixed or determinable, and (4) collection is probable. Revenue recognition for software with multiple-element arrangements requires recognition of revenue using the “residual method” when (a) there is vendor-specific objective evidence (VSOE) of the fair values of all undelivered elements in a multiple-element arrangement that is not accounted for using long-term contract accounting, (b) VSOE of fair value does not exist for one or more of the delivered elements in the arrangement, and (c) all other applicable revenue-recognition criteria for software revenue recognition are satisfied. For those contracts that contain significant customization or modifications, license revenue is recognized using contract accounting. The Company allocates revenue to customer support services and software enhancements and any other undelivered elements of the arrangement based on VSOE of fair value of each element, and such amounts are deferred until the applicable delivery criteria and other revenue recognition criteria have been met. The balance of the revenue, net of any discounts inherent in the arrangement, is recognized at the outset of the arrangement using the residual method as the product licenses are delivered. If the Company cannot objectively determine the fair value of each undelivered element based on the VSOE of fair value, the Company defers revenue recognition until all elements are delivered, all services have been performed, or until fair value can be objectively determined. The Company must apply judgment in determining all elements of the arrangement and in determining the VSOE of fair value for each element, considering the price charged for each product on a stand-alone basis or applicable renewal rates. For arrangements that include future software functionality deliverables, the Company accounts for these deliverables as a separate element of the arrangement. Because the Company does not sell these deliverables on a standalone basis, the Company is not able to establish VSOE of fair value of these deliverables. As a result, the Company defers all revenue under the arrangement until the future functionality has been delivered to the customer. Payment terms for the Company’s software licenses vary. Each contract is evaluated individually to determine whether the fees in the contract are fixed or determinable and whether collectability is probable. Judgment is required in assessing the probability of collection, which is generally based on evaluation of customer-specific information, historical collection experience, and economic market conditions. If market conditions decline, or if the financial conditions of customers deteriorate, the Company may be unable to determine that collectability is probable, and the Company could be required to defer the recognition of revenue until the Company receives customer payments. The Company has an established history of collecting under the terms of its software license contracts without providing refunds or concessions to its customers. Therefore, the Company has determined that the presence of payment terms that extend beyond contract execution in a particular contract do not preclude the conclusion that the fees in the contract are fixed or determinable. Although infrequent, when payment terms in a contract extend beyond twelve months, the Company has determined that such fees are not fixed or determinable and recognizes revenue as payments become due provided that all other conditions for revenue recognition have been met. The Company’s services revenue consists of fees generated from professional services and customer support and software enhancements related to the Company’s software products. Professional services include system planning, design, configuration, testing, and other software implementation support, and are not typically essential to the functionality of the software. Fees from professional services performed by the Company are separately priced and are generally billed on an hourly basis, and revenue is recognized as the services are performed. In certain situations, professional services are rendered under agreements in which billings are limited to contractual maximums or based upon a fixed fee for portions of or all of the engagement. Revenue related to fixed-fee-based contracts is recognized on a proportional performance basis based on the hours incurred on discrete projects within an overall services arrangement. The Company has determined that output measures, or services delivered, approximate the input measures associated with fixed-fee services arrangements. Project losses are provided for in their entirety in the period in which they become known. Revenue related to customer support services and software enhancements is generally paid in advance and recognized ratably over the term of the agreement, typically twelve months. Hardware and other revenue is generated from the resale of a variety of hardware products, developed and manufactured by third parties, that are integrated with and complementary to the Company’s software solutions. As part of a complete solution, the Company’s customers periodically purchase hardware from the Company for use with the software licenses purchased from the Company. These products include computer hardware, radio frequency terminal networks, radio frequency identification (RFID) chip readers, bar code printers and scanners, and other peripherals. Hardware revenue is recognized upon shipment to the customer when title passes. The Company generally purchases hardware from the Company’s vendors only after receiving an order from a customer. As a result, the Company generally does not maintain hardware inventory. In accordance with the other presentation matters within the Revenue Recognition Topic of the FASB Accounting Standards Codification (ASC), the Company recognizes amounts associated with reimbursements from customers for out-of-pocket expenses as revenue. Such amounts have been included in “Hardware and other” revenue in the Condensed Consolidated Statements of Income. The total amount of expense reimbursement recorded to revenue was $4.2 million and $5.3 million for the three months ended March 31, 2016 and 2015, respectively.

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurement	3. Fair Value Measurement The Company measures its investments based on a fair value hierarchy disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. Market price observability is affected by a number of factors, including the type of asset or liability and its characteristics. This hierarchy prioritizes the inputs into three broad levels as follows: · Level 1–Quoted prices in active markets for identical instruments. · Level 2–Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. · Level 3–Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The Company’s investments are categorized as available-for-sale securities and recorded at fair market value. Investments with maturities of 90 days or less from the date of purchase are classified as cash equivalents; investments with maturities of greater than 90 days from the date of purchase but less than one year are generally classified as short-term investments; and investments with maturities of one year or greater from the date of purchase are generally classified as long-term investments. Unrealized holding gains and losses are reflected as a net amount in a separate component of shareholders’ equity until realized. For the purposes of computing realized gains and losses, cost is determined on a specific identification basis. At March 31, 2016, the Company’s cash, cash equivalents, and short-term investments balances were $66.4 million, $39.4 million, and $8.9 million, respectively. The Company currently has no long-term investments. Cash equivalents consist of highly liquid money market funds and certificates of deposit. Short-term investments consist of certificates of deposit. The Company uses quoted prices from active markets that are classified at Level 1 as a highest level observable input in the disclosure hierarchy framework for all available-for-sale securities. At March 31, 2016 and December 31, 2015, the Company had $30.3 million in money market funds, which are classified as Level 1 and are included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. The Company has no investments classified as Level 2 or Level 3.

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity-Based Compensation	4. Equity-Based Compensation The Company granted 328,572 and 338,391 restricted stock units (“RSUs”) during the three months ended March 31, 2016 and 2015, respectively. The Company recorded equity-based compensation expense related to restricted stock and RSUs of $4.7 million and $3.1 million during the three months ended March 31, 2016 and 2015, respectively. A summary of changes in unvested shares/units for the three months ended March 31, 2016 is as follows: Number of shares/units Outstanding at December 31, 2015 1,205,533 Granted 328,572 Vested (440,328 ) Forfeited (26,446 ) Outstanding at March 31, 2016 1,067,331 No amounts were recorded for equity-based compensation expense related to stock options during the three months ended March 31, 2016 and 2015 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 three months ended March 31, 2016 is as follows: Number of Options Outstanding at December 31, 2015 3,610 Exercised (3,610 ) Forfeited and expired - Outstanding at March 31, 2016 -

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	5. Income Taxes The Company’s effective tax rate was 37% and 37.5% for the three months ended March 31, 2016 and 2015, respectively. The decrease in the effective tax rate for the three months ended March 31, 2016 is primarily due to the U.S. research and development credit claimed for the quarter ended March 31, 2016, as the credit became permanent in December 2015 and was not claimed during the quarter ended March 31, 2015. The Company applies the provisions for income taxes related to, among other things, accounting for uncertain tax positions and disclosure requirements in accordance with the Income Taxes Topic of the FASB ASC 740. For the three months ended March 31, 2016, there were no material changes to the Company’s uncertain tax positions. There has been no change to the Company’s policy that recognizes potential interest and penalties related to uncertain tax positions within its global operations in income tax expense. The Company currently plans to permanently reinvest all of its remaining undistributed foreign earnings. Accordingly, no provision for U.S. federal and state income taxes has been provided thereon. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to adjustment for foreign tax credits) and withholding taxes payable to various foreign countries. It is impractical to calculate the tax impact until such repatriation occurs. The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is no longer subject to U.S. federal income tax examinations, substantially all state and local income tax examinations and substantially all non-U.S. income tax examinations for years before 2012.

Net Earnings Per Share

Net Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Earnings Per Share	6. Net Earnings Per Share Basic net earnings per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for each period presented. Diluted net earnings per share is computed using net income divided by the sum of Weighted Shares and common equivalent shares (“CESs”) outstanding for each period presented using the treasury stock method. The following is a reconciliation of the net income and share amounts used in the computation of basic and diluted net earnings per common share for the three months ended March 31, 2016 and 2015 (in thousands, except per share data): Three Months Ended March 31, 2016 2015 (in thousands, except per share data) Net income $ 27,480 $ 23,204 Earnings per share: Basic $ 0.38 $ 0.31 Effect of CESs - - Diluted $ 0.38 $ 0.31 Weighted average number of shares: Basic 72,630 73,979 Effect of CESs 390 628 Diluted 73,020 74,607 The anti-dilutive CESs during 2016 and 2015 were immaterial.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Contingencies	7. Contingencies From time to time, the Company may be involved in litigation relating to claims arising out of its ordinary course of business, and occasionally legal proceedings not in the ordinary course. Many of the Company’s installations involve products that are critical to the operations of its clients’ businesses. Any failure in a Company product could result in a claim for substantial damages against the Company, regardless of the Company’s responsibility for such failure. Although the Company attempts to limit contractually its liability for damages arising from product failures or negligent acts or omissions, there can be no assurance that the limitations of liability set forth in its contracts will be enforceable in all instances. The Company is not currently a party to any legal proceedings the result of which it believes is likely to have a material adverse impact upon its business, financial position, results of operations, or cash flows. The Company expenses legal costs associated with loss contingencies as such legal costs are incurred.

Operating Segments

Operating Segments	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Operating Segments	8. Operating Segments The Company manages its business by geographic segment. The Company has three geographic reportable segments: North America and Latin America (the “Americas”); Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). All segments derive revenue from the sale and implementation of the Company’s supply chain commerce 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 commerce chain. The Company uses the same accounting policies for each reportable segment. The chief executive officer and chief financial officer evaluate performance based on revenue and operating results for each reportable segment. The Americas segment charges royalty fees to the other segments based on software licenses sold by those reportable segments. The royalties, which totaled approximately $0.4 million and $1.0 million for the three months ended March 31, 2016 and 2015, respectively, are included in cost of revenue for each segment with a corresponding reduction in America’s cost of revenue. The revenues represented below are from external customers only. The geographical-based costs consist of costs of professional services personnel, direct sales and marketing expenses, cost of infrastructure to support the employees and customer base, billing and financial systems, management and general and administrative support. There are certain corporate expenses included in the Americas segment that are not charged to the other segments, including research and development, certain marketing and general and administrative costs that support the global organization, and the amortization of acquired developed technology. Included in the Americas’ costs are all research and development costs including the costs associated with the Company’s India operations. The following table presents the revenues, expenses and operating income by reportable segment for the three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 19,032 $ 736 $ 839 $ 20,607 $ 15,483 $ 3,533 $ 298 $ 19,314 Services 97,378 14,469 4,416 116,263 82,212 14,200 4,791 101,203 Hardware and other 12,397 481 112 12,990 12,264 572 170 13,006 Total revenue 128,807 15,686 5,367 149,860 109,959 18,305 5,259 133,523 Costs and Expenses: Cost of revenue 54,239 7,685 2,889 64,813 46,401 8,907 2,929 58,237 Operating expenses 35,112 3,424 1,206 39,742 31,781 3,763 1,097 36,641 Depreciation and amortization 2,002 138 66 2,206 1,595 113 73 1,781 Total costs and expenses 91,353 11,247 4,161 106,761 79,777 12,783 4,099 96,659 Operating income $ 37,454 $ 4,439 $ 1,206 $ 43,099 $ 30,182 $ 5,522 $ 1,160 $ 36,864 License revenues related to the Company’s warehouse and non-warehouse product groups for the three months ended March 31, 2016 and 2015 are as follows (in thousands): Three Months Ended March 31, 2016 2015 Warehouse $ 13,451 $ 10,925 Non-Warehouse 7,156 8,389 Total software license revenue $ 20,607 $ 19,314 The Company’s services revenues, which consist of fees generated from professional services and customer support and software enhancements related to its software products, for the three months ended March 31, 2016 and 2015 are as follows (in thousands): Three Months Ended March 31, 2016 2015 Professional services $ 84,506 $ 72,659 Customer support and software enhancements 31,757 28,544 Total services revenue $ 116,263 $ 101,203

New Accounting Pronouncement

New Accounting Pronouncement	3 Months Ended
	Mar. 31, 2016
Accounting Changes And Error Corrections [Abstract]
New Accounting Pronouncement	9. New Accounting Pronouncement In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition – Revenue from Contracts with Customers, which will replace substantially all current revenue recognition guidance once it becomes effective. The new standard provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers unless the contracts are in the scope of other standards. The new standard is less prescriptive and may require software entities to use more judgment and estimates in the revenue recognition process than are required under existing revenue guidance. This guidance is 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 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, and may be applied either prospectively or retrospectively. We adopted this guidance in the first three months ended March 31, 2016 reporting on a retrospective basis. Accordingly, we reclassified the current deferred taxes to noncurrent on our December 31, 2015 condensed consolidated balance sheet, that increased noncurrent deferred tax assets $4.6 million and decreased noncurrent deferred tax liabilities $5.7 million to conform with the current period presentation. In February 2016, the FASB issued ASU 2016-02, Leases, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current U.S. generally accepted accounting principles (“GAAP”), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The accounting by organizations that own the assets leased by the lessee—also known as lessor accounting—will remain largely unchanged from current GAAP. However, the ASU contains some targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. For public companies, this guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods, but may be adopted earlier. We are currently evaluating the impact the adoption of this standard will have on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, to improve the accounting for employee share-based payments. Under the new guidance, companies will no longer record excess tax benefits

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Manhattan Associates, Inc. and its subsidiaries (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information, with the instructions to Form 10-Q and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, these condensed consolidated financial statements contain all normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position at March 31, 2016, the results of operations for the three months ended March 31, 2016 and 2015, and cash flows for the three months ended March 31, 2016 and 2015. The results for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Company’s audited consolidated financial statements and management’s discussion and analysis included in the Company’s annual report on Form 10-K for the year ended December 31, 2015.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the Company’s accounts and the accounts of its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Changes in Presentation of Comparative Financial Statements	Changes in Presentation of Comparative Financial Statements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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, and may be applied either prospectively or retrospectively. We adopted this guidance in the first three months ended March 31, 2016 reporting on a retrospective basis. Accordingly, we reclassified the current deferred taxes to noncurrent on our December 31, 2015 condensed consolidated balance sheet, that increased noncurrent deferred tax assets $4.6 million and decreased noncurrent deferred tax liabilities $5.7 million to conform with the current presentation.

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Changes in Unvested Shares/Units of Restricted Stock	A summary of changes in unvested shares/units for the three months ended March 31, 2016 is as follows: Number of shares/units Outstanding at December 31, 2015 1,205,533 Granted 328,572 Vested (440,328 ) Forfeited (26,446 ) Outstanding at March 31, 2016 1,067,331
Summary of Changes in Outstanding Options	A summary of changes in outstanding options for the three months ended March 31, 2016 is as follows: Number of Options Outstanding at December 31, 2015 3,610 Exercised (3,610 ) Forfeited and expired - Outstanding at March 31, 2016 -

Net Earnings Per Share (Tables)

Net Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Reconciliation of Net Income and Share Amounts in Computation of Basic and Diluted Net Earnings Per Common Share	The following is a reconciliation of the net income and share amounts used in the computation of basic and diluted net earnings per common share for the three months ended March 31, 2016 and 2015 (in thousands, except per share data): Three Months Ended March 31, 2016 2015 (in thousands, except per share data) Net income $ 27,480 $ 23,204 Earnings per share: Basic $ 0.38 $ 0.31 Effect of CESs - - Diluted $ 0.38 $ 0.31 Weighted average number of shares: Basic 72,630 73,979 Effect of CESs 390 628 Diluted 73,020 74,607

Operating Segments (Tables)

Operating Segments (Tables)	3 Months Ended
	Mar. 31, 2016
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 three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 19,032 $ 736 $ 839 $ 20,607 $ 15,483 $ 3,533 $ 298 $ 19,314 Services 97,378 14,469 4,416 116,263 82,212 14,200 4,791 101,203 Hardware and other 12,397 481 112 12,990 12,264 572 170 13,006 Total revenue 128,807 15,686 5,367 149,860 109,959 18,305 5,259 133,523 Costs and Expenses: Cost of revenue 54,239 7,685 2,889 64,813 46,401 8,907 2,929 58,237 Operating expenses 35,112 3,424 1,206 39,742 31,781 3,763 1,097 36,641 Depreciation and amortization 2,002 138 66 2,206 1,595 113 73 1,781 Total costs and expenses 91,353 11,247 4,161 106,761 79,777 12,783 4,099 96,659 Operating income $ 37,454 $ 4,439 $ 1,206 $ 43,099 $ 30,182 $ 5,522 $ 1,160 $ 36,864
License Revenue
Segment Reporting Information [Line Items]
Revenues	License revenues related to the Company’s warehouse and non-warehouse product groups for the three months ended March 31, 2016 and 2015 are as follows (in thousands): Three Months Ended March 31, 2016 2015 Warehouse $ 13,451 $ 10,925 Non-Warehouse 7,156 8,389 Total software license revenue $ 20,607 $ 19,314
Sales Revenue, Services, Net
Segment Reporting Information [Line Items]
Revenues	The Company’s services revenues, which consist of fees generated from professional services and customer support and software enhancements related to its software products, for the three months ended March 31, 2016 and 2015 are as follows (in thousands): Three Months Ended March 31, 2016 2015 Professional services $ 84,506 $ 72,659 Customer support and software enhancements 31,757 28,544 Total services revenue $ 116,263 $ 101,203

Summary of Significant Accoun20

Summary of Significant Accounting Policies - Additional Information (Detail) - ASU 2015-17 $ in Millions	Dec. 31, 2015USD ($)
Deferred Tax Assets Noncurrent
Significant Accounting Policies [Line Items]
Reclassification of current deferred taxes to noncurrent on adoption of accounting standards update	$ 4.6
Deferred Tax Liabilities Noncurrent
Significant Accounting Policies [Line Items]
Reclassification of current deferred taxes to noncurrent on adoption of accounting standards update	$ (5.7)

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue Recognition [Abstract]
Expense reimbursement recorded to revenue	$ 4.2	$ 5.3

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Detail) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fair Value Inputs Assets Quantitative Information [Line Items]
Cash balance	$ 66,400,000
Cash equivalents	39,400,000
Short-term investments	8,909,000	$ 10,344,000
Long term investments	0
Money Market Funds
Fair Value Inputs Assets Quantitative Information [Line Items]
Available-for-sale securities	$ 30,300,000	$ 30,300,000

Equity-Based Compensation - Add

Equity-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock expense	$ 4,700,000	$ 3,100,000
Stock option expense	$ 0	$ 0
Stock options granted	0	0
Restricted Stock and Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of restricted units granted in the period	328,572	338,391

Summary of Changes in Unvested

Summary of Changes in Unvested Shares/Units of Restricted Stock (Detail) - Restricted Stock and Restricted Stock Units - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares/units, Outstanding at December 31, 2015	1,205,533
Number of shares/units, Granted	328,572	338,391
Number of shares/units, Vested	(440,328)
Number of shares/units, Forfeited	(26,446)
Number of shares/units, Outstanding at March 31, 2016	1,067,331

Summary of Changes in Outstandi

Summary of Changes in Outstanding Options (Detail)	3 Months Ended
	Mar. 31, 2016shares
Number of Shares
Number of Options, Outstanding at December 31, 2015	3,610
Number of Options, Exercised	(3,610)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Effective tax rate	37.00%	37.50%

Reconciliation of Net Income an

Reconciliation of Net Income and Share Amounts in Computation of Basic and Diluted Net Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 27,480	$ 23,204
Earnings per share:
Basic	$ 0.38	$ 0.31
Diluted	$ 0.38	$ 0.31
Weighted average number of shares:
Basic	72,630	73,979
Effect of CESs	390	628
Diluted	73,020	74,607

Operating Segments - Additional

Operating Segments - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)Segment	Mar. 31, 2015USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segment	3
Americas
Segment Reporting Information [Line Items]
Americas royalty fees | $	$ 0.4	$ 1

Revenues, Expenses and Operatin

Revenues, Expenses and Operating Income by Reporting Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Software license	$ 20,607	$ 19,314
Services	116,263	101,203
Hardware and other	12,990	13,006
Total revenue	149,860	133,523
Cost of revenue	64,813	58,237
Operating expenses	39,742	36,641
Depreciation and amortization	2,206	1,781
Total costs and expenses	106,761	96,659
Operating income	43,099	36,864
Americas
Segment Reporting Information [Line Items]
Software license	19,032	15,483
Services	97,378	82,212
Hardware and other	12,397	12,264
Total revenue	128,807	109,959
Cost of revenue	54,239	46,401
Operating expenses	35,112	31,781
Depreciation and amortization	2,002	1,595
Total costs and expenses	91,353	79,777
Operating income	37,454	30,182
EMEA
Segment Reporting Information [Line Items]
Software license	736	3,533
Services	14,469	14,200
Hardware and other	481	572
Total revenue	15,686	18,305
Cost of revenue	7,685	8,907
Operating expenses	3,424	3,763
Depreciation and amortization	138	113
Total costs and expenses	11,247	12,783
Operating income	4,439	5,522
APAC
Segment Reporting Information [Line Items]
Software license	839	298
Services	4,416	4,791
Hardware and other	112	170
Total revenue	5,367	5,259
Cost of revenue	2,889	2,929
Operating expenses	1,206	1,097
Depreciation and amortization	66	73
Total costs and expenses	4,161	4,099
Operating income	$ 1,206	$ 1,160

License Revenues of Warehouse a

License Revenues of Warehouse and Non-Warehouse Product Groups (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue from External Customer [Line Items]
Software license revenue	$ 20,607	$ 19,314
Warehouse Product Groups
Revenue from External Customer [Line Items]
Software license revenue	13,451	10,925
Non-warehouse Product Groups
Revenue from External Customer [Line Items]
Software license revenue	$ 7,156	$ 8,389

Services Revenues from Professi

Services Revenues from Professional Services and Customer Support and Software Enhancements (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting [Abstract]
Professional services	$ 84,506	$ 72,659
Customer support and software enhancements	31,757	28,544
Total services revenue	$ 116,263	$ 101,203

New Accounting Pronouncement -

New Accounting Pronouncement - Additional Information (Detail) - ASU 2015-17 $ in Millions	Dec. 31, 2015USD ($)
Deferred Tax Assets Noncurrent
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Reclassification of current deferred taxes to noncurrent on adoption of accounting standards update	$ 4.6
Deferred Tax Liabilities Noncurrent
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Reclassification of current deferred taxes to noncurrent on adoption of accounting standards update	$ (5.7)