Manhattan Associates (MANH) 10-Q 22 Jul 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 19, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
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		71,605,024

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 93,135	$ 118,416
Short-term investments	2,076	10,344
Accounts receivable, net of allowance of $4,359 and $7,031, respectively	92,998	97,379
Prepaid expenses and other current assets	11,761	10,772
Total current assets	199,970	236,911
Property and equipment, net	20,861	21,176
Goodwill, net	62,235	62,233
Deferred income taxes	3,699	4,648
Other assets	7,111	7,275
Total assets	293,876	332,243
Current liabilities:
Accounts payable	11,546	11,219
Accrued compensation and benefits	19,653	29,284
Accrued and other liabilities	13,231	13,853
Deferred revenue	63,913	68,757
Income taxes payable	1,762	4,072
Total current liabilities	110,105	127,185
Other non-current liabilities	8,789	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; 71,604,493 and 72,766,383 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	716	728
Retained earnings	188,362	207,070
Accumulated other comprehensive loss	(14,096)	(12,306)
Total shareholders' equity	174,982	195,492
Total liabilities and shareholders' equity	$ 293,876	$ 332,243

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 4,359	$ 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	71,604,493	72,766,383
Common stock, shares outstanding	71,604,493	72,766,383

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue:
Software license	$ 20,631	$ 19,758	$ 41,238	$ 39,072
Services	119,833	107,344	236,096	208,547
Hardware and other	14,428	12,007	27,418	25,013
Total revenue	154,892	139,109	304,752	272,632
Costs and expenses:
Cost of license	2,283	2,137	5,435	5,043
Cost of services	48,393	46,464	100,297	91,248
Cost of hardware and other	11,841	10,163	21,598	20,710
Research and development	13,458	13,257	28,164	26,813
Sales and marketing	12,015	11,889	24,603	23,736
General and administrative	12,368	11,927	24,816	23,165
Depreciation and amortization	2,266	1,898	4,472	3,679
Total costs and expenses	102,624	97,735	209,385	194,394
Operating income	52,268	41,374	95,367	78,238
Other income, net	654	359	1,174	621
Income before income taxes	52,922	41,733	96,541	78,859
Income tax provision	19,581	15,729	35,720	29,651
Net income	$ 33,341	$ 26,004	$ 60,821	$ 49,208
Basic earnings per share	$ 0.46	$ 0.35	$ 0.84	$ 0.67
Diluted earnings per share	$ 0.46	$ 0.35	$ 0.84	$ 0.66
Weighted average number of shares:
Basic	71,880	73,618	72,264	73,797
Diluted	72,228	74,126	72,633	74,366

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 33,341	$ 26,004	$ 60,821	$ 49,208
Foreign currency translation adjustment	(1,845)	244	(1,790)	(127)
Comprehensive income	$ 31,496	$ 26,248	$ 59,031	$ 49,081

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities:
Net income	$ 60,821	$ 49,208
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,472	3,679
Equity-based compensation	8,183	5,739
Loss (Gain) on disposal of equipment	14	(38)
Tax benefit of stock awards exercised/vested	5,069	7,848
Excess tax benefits from equity-based compensation	(5,074)	(7,825)
Deferred income taxes	950	1,216
Unrealized foreign currency (gain) loss	(403)	117
Changes in operating assets and liabilities:
Accounts receivable, net	4,113	3,002
Other assets	(1,124)	(97)
Accounts payable, accrued and other liabilities	(10,624)	(13,296)
Income taxes	(2,313)	(5,428)
Deferred revenue	(4,577)	(1,437)
Net cash provided by operating activities	59,507	42,688
Investing activities:
Purchase of property and equipment	(4,107)	(5,769)
Net maturities of investments	8,113	447
Net cash provided by (used in) investing activities	4,006	(5,322)
Financing activities:
Purchase of common stock	(92,812)	(61,330)
Proceeds from issuance of common stock from options exercised	18	535
Excess tax benefits from equity-based compensation	5,074	7,825
Net cash used in financing activities	(87,720)	(52,970)
Foreign currency impact on cash	(1,074)	52
Net change in cash and cash equivalents	(25,281)	(15,552)
Cash and cash equivalents at beginning of period	118,416	115,708
Cash and cash equivalents at end of period	$ 93,135	$ 100,156

Basis of Presentation and Princ

Basis of Presentation and Principles of Consolidation	6 Months Ended
	Jun. 30, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation and Principles of Consolidation	1. Basis of Presentation and Principles of Consolidation Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Manhattan Associates, Inc. and its subsidiaries (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) 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 June 30, 2016, the results of operations for the three and six months ended June 30, 2016 and 2015, and cash flows for the six months ended June 30, 2016 and 2015. The results for the three and six months ended June 30, 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	6 Months Ended
	Jun. 30, 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 $4.9 million for both the three months ended June 30, 2016 and 2015, and $9.1 million and $10.2 million for the six months ended June 30, 2016 and 2015, respectively.

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 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. 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 June 30, 2016, the Company’s cash, cash equivalents, and short-term investments balances were $46.0 million, $47.1 million, and $2.1 million, respectively. The Company currently has no long-term investments. Cash equivalents consist of highly liquid money market funds and certificates of deposit. Short-term investments consist of certificates of deposit. The Company uses quoted prices from active markets that are classified at Level 1 as a highest level observable input in the disclosure hierarchy framework. At June 30, 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	6 Months Ended
	Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity-Based Compensation	4. Equity-Based Compensation The Company granted 20,659 and 15,890 restricted stock units (“RSUs”) during the three months ended June 30, 2016 and 2015, respectively, and 349,231 and 354,281 RSUs during the six months ended June 30, 2016 and 2015, respectively. The Company recorded equity-based compensation expense related to restricted stock and RSUs of $3.5 million and $2.7 million during the three months ended June 30, 2016 and 2015, respectively, and $8.2 million and $5.7 million during the six months ended June 30, 2016 and 2015, respectively. A summary of changes in unvested shares/units for the six months ended June 30, 2016 is as follows: Number of shares/units Outstanding at December 31, 2015 1,205,533 Granted 349,231 Vested (459,914 ) Forfeited (112,360 ) Outstanding at June 30, 2016 982,490 No amounts were recorded for equity-based compensation expense related to stock options during the three and six months ended June 30, 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 six months ended June 30, 2016 is as follows: Number of Options Outstanding at December 31, 2015 3,610 Exercised (3,610 ) Forfeited and expired - Outstanding at June 30, 2016 -

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	5. Income Taxes The Company’s effective tax rate was 37.0% and 37.7% for the three months ended June 30, 2016 and 2015, respectively, and 37.0% and 37.6% for the six months ended June 30, 2016 and 2015, respectively. The decrease in the effective tax rate for the quarter and the six months ended June 30, 2016 was primarily due to the U.S. research and development credit claimed for the quarter and the six month period ended June 30, 2016, as the credit became permanent in December 2015 and was not claimed during the quarter and the six months ended June 30, 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 and six months ended June 30, 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	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2016 and 2015 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in (in thousands, except per share data) Net income $ 33,341 $ 26,004 $ 60,821 $ 49,208 Earnings per share: Basic $ 0.46 $ 0.35 $ 0.84 $ 0.67 Effect of CESs - - - (0.01 ) Diluted $ 0.46 $ 0.35 $ 0.84 $ 0.66 Weighted average number of shares: Basic 71,880 73,618 72,264 73,797 Effect of CESs 348 508 369 569 Diluted 72,228 74,126 72,633 74,366 The anti-dilutive CESs during 2016 and 2015 were immaterial.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 chain commerce. The Company uses the same accounting policies for each reportable segment. The chief executive officer and interim 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 $0.8 million and $0.6 million for the three months ended June 30, 2016 and 2015, respectively, and approximately $1.2 million and $1.6 million for the six months ended June 30, 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 and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended June 30, 2016 2015 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 17,261 $ 2,236 $ 1,134 $ 20,631 $ 17,294 $ 2,115 $ 349 $ 19,758 Services 99,993 15,400 4,440 119,833 88,563 14,504 4,277 107,344 Hardware and other 13,764 549 115 14,428 11,297 556 154 12,007 Total revenue 131,018 18,185 5,689 154,892 117,154 17,175 4,780 139,109 Costs and Expenses: Cost of revenue 50,945 8,387 3,185 62,517 47,251 8,639 2,874 58,764 Operating expenses 33,885 2,808 1,148 37,841 32,013 3,908 1,152 37,073 Depreciation and amortization 2,062 136 68 2,266 1,676 112 110 1,898 Total costs and expenses 86,892 11,331 4,401 102,624 80,940 12,659 4,136 97,735 Operating income $ 44,126 $ 6,854 $ 1,288 $ 52,268 $ 36,214 $ 4,516 $ 644 $ 41,374 Six Months Ended June 30, 2016 2015 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 36,293 $ 2,972 $ 1,973 $ 41,238 $ 32,777 $ 5,648 $ 647 $ 39,072 Services 197,371 29,869 8,856 236,096 170,775 28,704 9,068 208,547 Hardware and other 26,161 1,030 227 27,418 23,561 1,128 324 25,013 Total revenue 259,825 33,871 11,056 304,752 227,113 35,480 10,039 272,632 Costs and Expenses: Cost of revenue 105,184 16,072 6,074 127,330 93,652 17,546 5,803 117,001 Operating expenses 68,997 6,232 2,354 77,583 63,794 7,671 2,249 73,714 Depreciation and amortization 4,064 274 134 4,472 3,271 225 183 3,679 Total costs and expenses 178,245 22,578 8,562 209,385 160,717 25,442 8,235 194,394 Operating income $ 81,580 $ 11,293 $ 2,494 $ 95,367 $ 66,396 $ 10,038 $ 1,804 $ 78,238 License revenues related to the Company’s warehouse and non-warehouse product groups for the three and six months ended June 30, 2016 and 2015 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Warehouse $ 12,003 $ 10,995 $ 25,454 $ 21,920 Non-Warehouse 8,628 8,763 15,784 17,152 Total software license revenue $ 20,631 $ 19,758 $ 41,238 $ 39,072 The Company’s services revenues, which consist of fees generated from professional services and customer support and software enhancements related to its software products, for the three and six months ended June 30, 2016 and 2015 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Professional services $ 86,992 $ 76,548 $ 171,498 $ 149,207 Customer support and software enhancements 32,841 30,796 64,598 59,340 Total services revenue $ 119,833 $ 107,344 $ 236,096 $ 208,547

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
Accounting Changes And Error Corrections [Abstract]
New Accounting Pronouncements	9. New Accounting Pronouncements Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606), 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. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations, which clarifies the implementation guidance for principal versus agent considerations in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing, which amends the guidance in ASU 2014-09 related to identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients, which clarifies the following aspects in ASU 2014-09: collectability, presentation of sales taxes and other similar taxes collected from customers, noncash considerations, contract modifications at transition, completed contracts at transition, and technical correction. We must adopt ASU 2016-08, ASU 2016-10 and ASU 2016-12 with ASU 2014-09, which is effective for annual and interim periods beginning after December 15, 2017. The new revenue standard may be applied 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 that the adoption of this standard will have on our Consolidated Financial Statements. Leases 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 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 that the adoption of this standard will have on our Consolidated Financial Statements. Stock Compensation 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

Basis of Presentation and Pri16

Basis of Presentation and Principles of Consolidation (Policies)	6 Months Ended
	Jun. 30, 2016
Organization Consolidation And Presentation Of Financial Statements [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 (“GAAP”) 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 June 30, 2016, the results of operations for the three and six months ended June 30, 2016 and 2015, and cash flows for the six months ended June 30, 2016 and 2015. The results for the three and six months ended June 30, 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)	6 Months Ended
	Jun. 30, 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 six months ended June 30, 2016 is as follows: Number of shares/units Outstanding at December 31, 2015 1,205,533 Granted 349,231 Vested (459,914 ) Forfeited (112,360 ) Outstanding at June 30, 2016 982,490
Summary of Changes in Outstanding Options	A summary of changes in outstanding options for the six months ended June 30, 2016 is as follows: Number of Options Outstanding at December 31, 2015 3,610 Exercised (3,610 ) Forfeited and expired - Outstanding at June 30, 2016 -

Net Earnings Per Share (Tables)

Net Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2016 and 2015 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in (in thousands, except per share data) Net income $ 33,341 $ 26,004 $ 60,821 $ 49,208 Earnings per share: Basic $ 0.46 $ 0.35 $ 0.84 $ 0.67 Effect of CESs - - - (0.01 ) Diluted $ 0.46 $ 0.35 $ 0.84 $ 0.66 Weighted average number of shares: Basic 71,880 73,618 72,264 73,797 Effect of CESs 348 508 369 569 Diluted 72,228 74,126 72,633 74,366

Operating Segments (Tables)

Operating Segments (Tables)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended June 30, 2016 2015 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 17,261 $ 2,236 $ 1,134 $ 20,631 $ 17,294 $ 2,115 $ 349 $ 19,758 Services 99,993 15,400 4,440 119,833 88,563 14,504 4,277 107,344 Hardware and other 13,764 549 115 14,428 11,297 556 154 12,007 Total revenue 131,018 18,185 5,689 154,892 117,154 17,175 4,780 139,109 Costs and Expenses: Cost of revenue 50,945 8,387 3,185 62,517 47,251 8,639 2,874 58,764 Operating expenses 33,885 2,808 1,148 37,841 32,013 3,908 1,152 37,073 Depreciation and amortization 2,062 136 68 2,266 1,676 112 110 1,898 Total costs and expenses 86,892 11,331 4,401 102,624 80,940 12,659 4,136 97,735 Operating income $ 44,126 $ 6,854 $ 1,288 $ 52,268 $ 36,214 $ 4,516 $ 644 $ 41,374 Six Months Ended June 30, 2016 2015 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 36,293 $ 2,972 $ 1,973 $ 41,238 $ 32,777 $ 5,648 $ 647 $ 39,072 Services 197,371 29,869 8,856 236,096 170,775 28,704 9,068 208,547 Hardware and other 26,161 1,030 227 27,418 23,561 1,128 324 25,013 Total revenue 259,825 33,871 11,056 304,752 227,113 35,480 10,039 272,632 Costs and Expenses: Cost of revenue 105,184 16,072 6,074 127,330 93,652 17,546 5,803 117,001 Operating expenses 68,997 6,232 2,354 77,583 63,794 7,671 2,249 73,714 Depreciation and amortization 4,064 274 134 4,472 3,271 225 183 3,679 Total costs and expenses 178,245 22,578 8,562 209,385 160,717 25,442 8,235 194,394 Operating income $ 81,580 $ 11,293 $ 2,494 $ 95,367 $ 66,396 $ 10,038 $ 1,804 $ 78,238
License Revenue
Segment Reporting Information [Line Items]
Revenues	License revenues related to the Company’s warehouse and non-warehouse product groups for the three and six months ended June 30, 2016 and 2015 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Warehouse $ 12,003 $ 10,995 $ 25,454 $ 21,920 Non-Warehouse 8,628 8,763 15,784 17,152 Total software license revenue $ 20,631 $ 19,758 $ 41,238 $ 39,072
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 and six months ended June 30, 2016 and 2015 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Professional services $ 86,992 $ 76,548 $ 171,498 $ 149,207 Customer support and software enhancements 32,841 30,796 64,598 59,340 Total services revenue $ 119,833 $ 107,344 $ 236,096 $ 208,547

Basis of Presentation and Pri20

Basis of Presentation and Principles of Consolidation - Additional Information (Detail) - ASU 2015-17 $ in Millions	Dec. 31, 2015USD ($)
Deferred Tax Assets Noncurrent
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Reclassification of current deferred taxes to noncurrent on adoption of accounting standards update	$ 4.6
Deferred Tax Liabilities Noncurrent
Organization Consolidation And Presentation Of Financial Statements [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		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue Recognition [Abstract]
Expense reimbursement recorded to revenue	$ 4.9	$ 4.9	$ 9.1	$ 10.2

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Detail) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Cash balance	$ 46,000,000
Cash equivalents	47,100,000
Short-term investments	2,076,000	$ 10,344,000
Long term investments	0
Money market funds	$ 30,300,000	$ 30,300,000

Equity-Based Compensation - Add

Equity-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock expense	$ 3,500,000	$ 2,700,000	$ 8,200,000	$ 5,700,000
Stock option expense	$ 0	$ 0	$ 0	$ 0
Stock options granted			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	20,659	15,890	349,231	354,281

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		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 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	20,659	15,890	349,231	354,281
Number of shares/units, Vested			(459,914)
Number of shares/units, Forfeited			(112,360)
Number of shares/units, Outstanding at June 30, 2016	982,490		982,490

Summary of Changes in Outstandi

Summary of Changes in Outstanding Options (Detail)	6 Months Ended
	Jun. 30, 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		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Effective tax rate	37.00%	37.70%	37.00%	37.60%

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		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net income	$ 33,341	$ 26,004	$ 60,821	$ 49,208
Earnings per share:
Basic	$ 0.46	$ 0.35	$ 0.84	$ 0.67
Effect of CESs				(0.01)
Diluted	$ 0.46	$ 0.35	$ 0.84	$ 0.66
Weighted average number of shares:
Basic	71,880	73,618	72,264	73,797
Effect of CESs	348	508	369	569
Diluted	72,228	74,126	72,633	74,366

Operating Segments - Additional

Operating Segments - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Segment	Jun. 30, 2015USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segment			3
Americas
Segment Reporting Information [Line Items]
Americas royalty fees | $	$ 0.8	$ 0.6	$ 1.2	$ 1.6

Revenues, Expenses and Operatin

Revenues, Expenses and Operating Income by Reporting Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Software license	$ 20,631	$ 19,758	$ 41,238	$ 39,072
Services	119,833	107,344	236,096	208,547
Hardware and other	14,428	12,007	27,418	25,013
Total revenue	154,892	139,109	304,752	272,632
Cost of revenue	62,517	58,764	127,330	117,001
Operating expenses	37,841	37,073	77,583	73,714
Depreciation and amortization	2,266	1,898	4,472	3,679
Total costs and expenses	102,624	97,735	209,385	194,394
Operating income	52,268	41,374	95,367	78,238
Americas
Segment Reporting Information [Line Items]
Software license	17,261	17,294	36,293	32,777
Services	99,993	88,563	197,371	170,775
Hardware and other	13,764	11,297	26,161	23,561
Total revenue	131,018	117,154	259,825	227,113
Cost of revenue	50,945	47,251	105,184	93,652
Operating expenses	33,885	32,013	68,997	63,794
Depreciation and amortization	2,062	1,676	4,064	3,271
Total costs and expenses	86,892	80,940	178,245	160,717
Operating income	44,126	36,214	81,580	66,396
EMEA
Segment Reporting Information [Line Items]
Software license	2,236	2,115	2,972	5,648
Services	15,400	14,504	29,869	28,704
Hardware and other	549	556	1,030	1,128
Total revenue	18,185	17,175	33,871	35,480
Cost of revenue	8,387	8,639	16,072	17,546
Operating expenses	2,808	3,908	6,232	7,671
Depreciation and amortization	136	112	274	225
Total costs and expenses	11,331	12,659	22,578	25,442
Operating income	6,854	4,516	11,293	10,038
APAC
Segment Reporting Information [Line Items]
Software license	1,134	349	1,973	647
Services	4,440	4,277	8,856	9,068
Hardware and other	115	154	227	324
Total revenue	5,689	4,780	11,056	10,039
Cost of revenue	3,185	2,874	6,074	5,803
Operating expenses	1,148	1,152	2,354	2,249
Depreciation and amortization	68	110	134	183
Total costs and expenses	4,401	4,136	8,562	8,235
Operating income	$ 1,288	$ 644	$ 2,494	$ 1,804

License Revenues of Warehouse a

License Revenues of Warehouse and Non-Warehouse Product Groups (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue from External Customer [Line Items]
Software license revenue	$ 20,631	$ 19,758	$ 41,238	$ 39,072
Warehouse Product Groups
Revenue from External Customer [Line Items]
Software license revenue	12,003	10,995	25,454	21,920
Non-warehouse Product Groups
Revenue from External Customer [Line Items]
Software license revenue	$ 8,628	$ 8,763	$ 15,784	$ 17,152

Services Revenues from Professi

Services Revenues from Professional Services and Customer Support and Software Enhancements (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting [Abstract]
Professional services	$ 86,992	$ 76,548	$ 171,498	$ 149,207
Customer support and software enhancements	32,841	30,796	64,598	59,340
Total services revenue	$ 119,833	$ 107,344	$ 236,096	$ 208,547