Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 22, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MANH | |
Entity Registrant Name | MANHATTAN ASSOCIATES INC | |
Entity Central Index Key | 1,056,696 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 65,378,469 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 89,749 | $ 125,522 |
Short-term investments | 4,148 | |
Accounts receivable, net of allowance of $2,792 and $2,692 at September 30, 2018 and December 31, 2017, respectively | 92,966 | 92,231 |
Prepaid expenses and other current assets | 16,292 | 10,320 |
Total current assets | 203,155 | 228,073 |
Property and equipment, net | 14,501 | 15,493 |
Goodwill, net | 62,243 | 62,248 |
Deferred income taxes | 1,424 | 1,877 |
Other assets | 9,685 | 7,304 |
Total assets | 291,008 | 314,995 |
Current liabilities: | ||
Accounts payable | 14,273 | 14,028 |
Accrued compensation and benefits | 26,711 | 15,826 |
Accrued and other liabilities | 11,247 | 12,105 |
Deferred revenue | 83,020 | 75,068 |
Income taxes payable | 1,355 | 7,228 |
Total current liabilities | 136,606 | 124,255 |
Other non-current liabilities | 14,724 | 15,784 |
Shareholders' equity: | ||
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2018 and 2017 | ||
Common stock, $0.01 par value; 200,000,000 shares authorized; 65,378,469 and 67,776,138 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 654 | 678 |
Retained earnings | 156,912 | 186,117 |
Accumulated other comprehensive loss | (17,888) | (11,839) |
Total shareholders' equity | 139,678 | 174,956 |
Total liabilities and shareholders' equity | $ 291,008 | $ 314,995 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 2,792 | $ 2,692 |
Preferred stock, par value | ||
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 | 65,378,469 | 67,776,138 |
Common stock, shares outstanding | 65,378,469 | 67,776,138 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Total revenue | $ 142,351 | $ 152,883 | $ 414,791 | $ 450,513 |
Total costs | 61,186 | 63,072 | 178,061 | 187,006 |
Research and development | 18,453 | 14,747 | 53,688 | 43,074 |
Sales and marketing | 10,726 | 10,739 | 37,419 | 34,260 |
General and administrative | 13,711 | 11,031 | 39,396 | 34,290 |
Depreciation and amortization | 2,179 | 2,275 | 6,616 | 6,863 |
Restructuring charge | (77) | 2,945 | ||
Total costs and expenses | 106,255 | 101,787 | 315,180 | 308,438 |
Operating income | 36,096 | 51,096 | 99,611 | 142,075 |
Other income (loss), net | 1,538 | 207 | 3,245 | (232) |
Income before income taxes | 37,634 | 51,303 | 102,856 | 141,843 |
Income tax provision | 9,179 | 18,704 | 24,081 | 49,876 |
Net income | $ 28,455 | $ 32,599 | $ 78,775 | $ 91,967 |
Basic earnings per share | $ 0.43 | $ 0.47 | $ 1.18 | $ 1.33 |
Diluted earnings per share | $ 0.43 | $ 0.47 | $ 1.18 | $ 1.32 |
Weighted average number of shares: | ||||
Basic | 65,658 | 68,928 | 66,539 | 69,389 |
Diluted | 65,901 | 69,135 | 66,717 | 69,614 |
Software License | ||||
Total revenue | $ 11,526 | $ 16,260 | $ 32,054 | $ 57,601 |
Total costs | 1,211 | 1,316 | 4,615 | 4,106 |
Cloud Subscriptions | ||||
Total revenue | 6,455 | 2,534 | 16,301 | 6,408 |
Maintenance | ||||
Total revenue | 37,177 | 36,338 | 110,567 | 105,673 |
Services | ||||
Total revenue | 84,136 | 84,211 | 245,160 | 249,319 |
Hardware | ||||
Total revenue | 3,057 | 13,540 | 10,709 | 31,512 |
Total costs | 10,653 | 23,789 | ||
Cost of Cloud Subscriptions, Maintenance and Services | ||||
Total costs | $ 59,975 | $ 51,103 | $ 173,446 | $ 159,111 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 28,455 | $ 32,599 | $ 78,775 | $ 91,967 |
Foreign currency translation adjustment | (2,478) | 376 | (6,049) | 3,148 |
Comprehensive income | $ 25,977 | $ 32,975 | $ 72,726 | $ 95,115 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities: | ||
Net income | $ 78,775 | $ 91,967 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,616 | 6,863 |
Equity-based compensation | 14,573 | 11,041 |
Loss on disposal of equipment | 56 | 34 |
Deferred income taxes | (244) | 741 |
Unrealized foreign currency (gain) loss | (1,373) | 93 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (1,995) | 5,095 |
Other assets | (5,296) | (940) |
Accounts payable, accrued and other liabilities | 11,059 | (2,273) |
Income taxes | (7,488) | (2,151) |
Deferred revenue | 8,635 | 6,169 |
Net cash provided by operating activities | 103,318 | 116,639 |
Investing activities: | ||
Purchase of property and equipment | (5,536) | (3,897) |
Net purchases of investments | (5,196) | (4,487) |
Net cash used in investing activities | (10,732) | (8,384) |
Financing activities: | ||
Purchase of common stock | (124,558) | (81,700) |
Net cash used in financing activities | (124,558) | (81,700) |
Foreign currency impact on cash | (3,801) | 2,648 |
Net change in cash and cash equivalents | (35,773) | 29,203 |
Cash and cash equivalents at beginning of period | 125,522 | 95,615 |
Cash and cash equivalents at end of period | $ 89,749 | $ 124,818 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Balance at Dec. 31, 2016 | $ 169,366 | $ 702 | $ 184,558 | $ (15,894) | |
Balance (in shares) at Dec. 31, 2016 | 70,233,955 | ||||
Repurchase of common stock | (131,707) | $ (28) | $ (18,050) | (113,629) | |
Repurchase of common stock (in shares) | (2,829,850) | ||||
Restricted stock units issuance | $ 4 | (4) | |||
Restricted stock units issuance (in shares) | 372,033 | ||||
Equity-based compensation | 16,229 | 16,229 | |||
Adjustment due to adoption of ASU | ASU 2016-09 | 532 | 1,825 | (1,293) | ||
Foreign currency translation adjustment | 4,055 | 4,055 | |||
Net income | 116,481 | 116,481 | |||
Balance at Dec. 31, 2017 | 174,956 | $ 678 | 186,117 | (11,839) | |
Balance (in shares) at Dec. 31, 2017 | 67,776,138 | ||||
Repurchase of common stock | (124,558) | $ (27) | (14,570) | (109,961) | |
Repurchase of common stock (in shares) | (2,744,126) | ||||
Restricted stock units issuance | $ 3 | (3) | |||
Restricted stock units issuance (in shares) | 346,457 | ||||
Equity-based compensation | 14,573 | $ 14,573 | |||
Adjustment due to adoption of ASU | ASC 2014-09 | 1,981 | 1,981 | |||
Foreign currency translation adjustment | (6,049) | (6,049) | |||
Net income | 78,775 | 78,775 | |||
Balance at Sep. 30, 2018 | $ 139,678 | $ 654 | $ 156,912 | $ (17,888) | |
Balance (in shares) at Sep. 30, 2018 | 65,378,469 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2018 | |
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,” “we,” “us,” or “our,” or “Manhattan”) 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 our financial position at September 30, 2018, the results of operations for the three and nine months ended September 30, 2018 and 2017, and cash flows for the nine months ended September 30, 2018 and 2017. The results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year or any other interim period. These statements should be read in conjunction with our audited consolidated financial statements and management’s discussion and analysis included in our annual report on Form 10-K for the year ended December 31, 2017. Principles of Consolidation The accompanying condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain line items in prior period financial statements have been reclassified to conform to the current period presentation in the condensed consolidated statements of income due to our business transition from perpetual software license to cloud subscriptions. We believe separate disclosures of our software license, cloud subscription, maintenance and service revenue are meaningful to investors and provide important measures of our business performance. The line items in prior period financial statements that have been reclassified to conform to the current period presentation in the condensed consolidated statements of income, include: all revenue line items; cost of license; cost of cloud subscriptions, maintenance and services; and cost of hardware. Such reclassifications did not affect total revenues, operating income or net income. New Accounting Pronouncements Adopted in Fiscal Year 2018 Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606), which, along with its subsequent amendments, replaced substantially all revenue recognition guidance. 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. On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results of reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the previous revenue recognition standard (Topic 605). Historical hardware sales prior to the adoption of Accounting Standards Codification (ASC) 606 were recorded on a gross basis, as we were the principal in the transaction in accordance with ASC 605-45. Under the new standard, we are an agent in the transaction as we do not physically control the hardware which we sell; accordingly, we recognize our hardware revenue net of related cost which reduces both hardware revenue and cost of sales as compared to our accounting prior to 2018. Otherwise, the adoption of ASC 606 does not have a material impact on the measurement or recognition of revenue in any prior or current reporting periods. However, based on expected renewals of maintenance and multi-year cloud subscriptions, we must defer a portion of our sales commission expense and amortize it over time as the corresponding services are transferred to the customer under the new standard. As a result, we recorded a net increase to opening retained earnings of $2.0 million, net of tax, as of January 1, 2018 for commissions expense required to be deferred on contracts not completed as of that date. Had we presented the results for the three and nine months ended September 30, 2018 under Topic 605, we would have presented hardware revenue gross which would have increased hardware revenue and cost of hardware each by $7.5 million and $27.3 million, respectively. We would have also expensed all sales commissions upon contract completion which would have increased sales and marketing expense by $ 0.6 million and $ 1.4 million for the three and nine months ended September 30, 2018 , respectively. Stock Compensation In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07). The new guidance expands the scope of ASC 718, Compensation – Stock Compensation, to include share-based payments granted to nonemployees in exchange for goods or services used or consumed in an entity’s operations, and supersedes the guidance in ASC 505-50, Equity-Based Payments to NonEmployees. Once adopted, the fair value of awards granted to nonemployees will be determined as of the grant date and recognized, in expense, over the service period. Previous guidance required the fair value of awards granted to nonemployees to be remeasured at intervals in determining the expense to be recognized. ASU 2018-07 is effective for public business entities in annual periods beginning after December 15, 2018 (first quarter 2019 for us). We early adopted ASU 2018-07 in the third quarter of 2018, and the adoption did not impact our financial statements. New Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued ASU 2016-02, Leases, which established new ASC Topic 842 (ASC 842), 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 standard will require both types of leases to be recognized on the balance sheet. ASC 842 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. ASC 842 was previously required to be adopted using the modified retrospective approach. However, in July 2018, the FASB issued ASU 2018-11, which allows for retrospective application with the recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Under this option, entities would not need to apply ASC 842 (along with its disclosure requirements) to the comparative prior periods presented. ASC 842 is effective for us in the first quarter of 2019 and we expect that most of our operating leases (primarily office space) will be recognized as operating lease liabilities and right of use assets on our balance sheet. We are continuing to evaluate the impact that the adoption of this standard will have on our financial statements but currently believe it is likely that we will elect to adopt certain of the optional practical expedients, including the package of practical expedients, which, among other things, gives us the option to not reassess: 1) whether expired or existing contracts are or contain leases; 2) the lease classification for expired or existing leases; and 3) initial direct costs for existing leases. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2. Revenue Recognition We recognize revenue when we transfer control of the promised products or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. We derive our revenue from software licenses, cloud subscriptions, customer support services and software enhancements (“maintenance”), implementation and training services, and sales of hardware. We exclude sales and usage-based taxes from revenue. Nature of Products and Services Our perpetual software licenses provide the customer with a right to use the software as it exists at the time of purchase. We recognize revenue for distinct software licenses once the license period has begun and we have made the software available to the customer. Cloud subscriptions includes software as a service (“SaaS”) and arrangements which provide customers with the right to use our software within a cloud-based environment that we provide and manage where the customer does not have the right to take possession of the software without significant penalty. SaaS and hosting revenues are recognized ratably over the contract period. For contracts that include a perpetual license and hosting services, we generally consider the arrangement as an overall service, recognized over the initial hosting term. The software license fee typically due at the outset of the arrangement is not payable again if the customer renews the hosting services, so that the customer’s option to renew the hosting services is a material right, the revenue from which, if the option is exercised, we will recognize over the applicable renewal period. Our perpetual software licenses are typically sold with maintenance under which we provide a comprehensive 24 hours per day, 365 days per year program that provides customers with software upgrades, when and if available, which include additional or improved functionality and technological advances incorporating emerging supply chain and industry initiatives. Revenue related to maintenance is generally paid in advance and recognized ratably over the term of the agreement, typically twelve months. Our services revenue consists of fees generated from implementation and training services, including reimbursements of out-pocket expenses in connection with our services. Services include system planning, design, configuration, testing, and other software implementation support, and are typically optional and distinct from our software. Fees for our services are separately priced and are generally billed on an hourly basis, and revenue is recognized over time as the services are performed. In certain situations, we render professional services under agreements based upon a fixed fee for portions of or all of the engagement. Revenue related to fixed-fee-based services contracts is recognized over time based on the proportion performed. As part of a complete solution, our customers periodically purchase hardware products developed and manufactured by third parties from us for use with the software licenses purchased from us. These products include computer hardware, radio frequency terminal networks, radio frequency identification (RFID) chip readers, bar code printers and scanners, and other peripherals. As we do not physically control the hardware that we sell, we are acting as an agent in the transaction and recognize our hardware revenue net of related cost. We recognize hardware revenue when control is transferred to the customer upon shipment. Significant Judgements Our contracts with customers typically contain promises to transfer multiple products and services to a customer. Judgement is required to determine whether each product and service is considered to be a distinct performance obligation that should be accounted for separately under the contract. We allocate the transaction price to the distinct performance obligations based on relative standalone selling price (“SSP”). We estimate SSP based on the prices charged to customers, or by using information such as market conditions and other observable inputs. However, the selling price of our software licenses is highly variable. Thus, we estimate SSP for software licenses using the residual approach, determined based on total transaction price less the SSP of other goods and services promised in the contract. Contract Balances Timing of invoicing to customers may differ from timing of revenue recognition. Payment terms for our software licenses vary. We have an established history of collecting under the terms of our software license contracts without providing refunds or concessions to our customers. Cloud subscriptions and maintenance are typically billed annually in advance. Services are typically billed monthly as performed. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with predictable ways to purchase our software and services, not to provide or receive financing. Additionally, we are applying the practical expedient to exclude from consideration any contracts with payment terms of one year or less as we rarely offer terms extending beyond one year. Deferred revenue mainly represents amounts collected prior to having completed performance of maintenance, cloud subscriptions and professional services. $13.4 million and $66.8 million of revenue that was included in the deferred revenue balance as of December 31, 2017 was recognized during the three and nine months ended September 30, 2018, respectively. $38.4 million of revenue that was included in the deferred revenue balance as of June 30, 2018 was recognized during the three months ended September 30, 2018. There was no revenue recognized during the three and nine months ended September 30, 2018 from performance obligations that were satisfied in prior periods. Remaining Performance Obligations As of September 30, 2018, approximately $64.2 million of revenue is expected to be recognized from remaining performance obligations for cloud subscriptions and maintenance contracts with a non-cancelable term greater than 1 year (including deferred revenue as well as amounts that will be invoiced and recognized as revenue in future periods). We expect to recognize revenue on approximately two-thirds of these remaining performance obligations over the next 24 months with the balance recognized thereafter. We have elected not to provide disclosures regarding remaining performance obligations for contracts with a term of 1 year or less. Returns and Allowances We have not experienced significant returns or warranty claims to date and, as a result, have not recorded a provision for the cost of returns and product warranty claims. We record an allowance for doubtful accounts based on the historical experience of write-offs and a detailed assessment of accounts receivable. Additions to the allowance for doubtful accounts generally represent a sales allowance on services revenue, which are recorded to operations as a reduction to services revenue. The total amount charged to operations was $0.4 million and $3.2 million for the three and nine months ended September 30, 2018, respectively. In estimating the allowance for doubtful accounts, we consider the age of the accounts receivable, our historical write-offs, and the creditworthiness of the customer, among other factors. Should any of these factors change, the estimates made by us will also change accordingly, which could affect the level of our future allowances. Uncollectible accounts are written off when it is determined that the specific balance is not collectible. Deferred Commissions We consider sales commissions to be incremental costs of obtaining a contract with a customer. We defer and recognize an asset for sales commissions related to performance obligations with an expected period of benefit of more than one year. We apply the practical expedient to expense sales commissions when the amortization period would have been one year or less. Deferred commissions were $3.2 million as of September 30, 2018, of which $2.2 million is included in other assets and $1.0 million is included in prepaid expenses and other current assets. Sales commission expense is included in Sales and Marketing expense in the accompanying consolidated statement of operations. Amortization of sales commissions was $0.3 million and $0.7 million for the three and nine months ended September 30, 2018, respectively. No impairment losses were recognized during the periods. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 3. Fair Value Measurement We measure our 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 September 30, 2018, our cash, cash equivalents, and short-term investments were $71.8 million, $18.0 million, and $4.1 million, respectively. We currently have 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. For money market funds, we use quoted prices from active markets that are classified at Level 1, the highest level of observable input in the disclosure hierarchy framework. At September 30, 2018 and December 31, 2017, we had $9.6 million and $10.5 million, respectively, in money market funds, which are classified at Level 1 and are included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. We have no investments classified at Level 2 or Level 3. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | 4. Equity-Based Compensation We granted 13,665 and 97,458 restricted stock units (“RSUs”) during the three months ended September 30, 2018 and 2017, respectively, and granted 522,672 and 458,449 RSUs, during the nine months ended September 30, 2018 and 2017, respectively. Equity-based compensation expense related to RSUs was $5.3 million and $3.8 million during the three months ended September 30, 2018 and 2017 , respectively, and $14.6 million and $11.0 million during the nine months ended September 30, 2018 and 2017 , respectively. A summary of changes in unvested shares/units for the nine months ended September 30, 2018 is as follows: Number of shares/units Outstanding at December 31, 2017 1,036,635 Granted 522,672 Vested (379,312 ) Forfeited (180,956 ) Outstanding at September 30, 2018 999,039 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes Our effective tax rate was 24.4% and 36.5% for the three months ended September 30, 2018 and 2017, respectively, and 23.4% and 35.2% for the nine months ended September 30, 2018 and 2017, respectively. The decrease in the effective tax rate for the three months ended September 30, 2018 is a result of the reduction of the U.S. statutory tax rate from 35% to 21%. The decrease in the effective tax rate for the nine months ended September 30, 2018 primarily relates to the reduction of the U.S. statutory tax rate from 35% to 21%, partially offset by a decrease of $1.1 million in excess tax benefits on restricted stock vesting. We also reduced our provisional one-time estimate for the impact of tax reform discussed below by $0.3 million. U.S. Tax Reform On December 22, 2017, the United States enacted tax reform legislation pursuant to the Tax Cuts and Jobs Act (the Act). The Act reduces the U.S. federal corporate income tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. We are applying the guidance in Staff Accounting Bulletin (SAB) 118 when accounting for the enactment-date effects of the Act. At September 30, 2018, we have made a reasonable estimate of the effects of the Act. We will continue to make and refine our calculations as we complete additional analysis. Our estimates may also be affected as we gain a more thorough understanding of the tax law, as more guidance/technical corrections are released by the Internal Revenue Service (IRS) and/or Congress. These changes could be material to income tax expense. In December 2017, we recorded a provisional estimate of $3.3 million for the one-time deemed repatriation transition tax on unrepatriated foreign earnings. The one-time transition tax is based on our total earnings and profits (E&P) which we deferred from the U.S. income taxes under the previous U.S. law. As we continue to refine our E&P analysis, we will refine our calculations of the one-time transition tax, which could affect the measurement of this liability. We have not provided additional income taxes for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in our foreign subsidiaries, as these amounts continue to be indefinitely reinvested in foreign operations. In December 2017, we also recorded a provisional write-down to deferred tax assets of $0.7 million related to changes in section 162(m), Internal Revenue Code of 1986, regarding deductions for excessive employee compensation. We continue to gather and analyze information, including the definition of an employee contract for stock grants not vested as of the enactment date of the Act and the potential impact of Notice 2018-68 released by the Internal Revenue Service during the quarter, which provided initial guidance on the application of Code section 162(m) after Tax Reform. We reduced this estimate by $0.3 million during the nine months ended September 30, 2018. The Act also subjects a U.S. shareholder to tax on global intangible low taxed income (GILTI) earned by certain foreign subsidiaries. The Staff of the FASB provided additional guidance to address the accounting for the effects of the provisions related to the taxation of GILTI, noting that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period cost only. Given the complexity of the GILTI provisions, we are still evaluating the effects of the GILTI provisions and have not yet determined our accounting policy. At September 30, 2018, because we are still evaluating the GILTI provisions and our analysis of future taxable income that is subject to GILTI, we have included GILTI related to current-year operations only in our effective tax rate and have not provided additional GILTI on deferred items. We apply the provisions for income taxes related to, among other things, accounting for uncertain tax positions and disclosure requirements in accordance with ASC 740, Income Taxes. For the three months ended September 30, 2018 , there were no material changes to our uncertain tax positions. There has been no change to our policy that recognizes potential interest and penalties related to uncertain tax positions within our global operations in income tax expense. We conduct business globally and, as a result, file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, Manhattan is subject to examination by taxing authorities throughout the world. We are no longer subject to the U.S. federal, 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 | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | 6. Net Earnings Per Share Basic net earnings per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for each period presented. Diluted net earnings per share is computed using net income divided by the sum of Weighted Shares and common equivalent shares (CESs) outstanding for each period presented using the treasury stock method. The following is a reconciliation of the net income and share amounts used in the computation of basic and diluted net earnings per common share for the three and nine months ended September 30, 2018 and 2017 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in (in thousands, except per share data) Net income $ 28,455 $ 32,599 $ 78,775 $ 91,967 Earnings per share: Basic $ 0.43 $ 0.47 $ 1.18 $ 1.33 Effect of CESs - - - (0.01 ) Diluted $ 0.43 $ 0.47 $ 1.18 $ 1.32 Weighted average number of shares: Basic 65,658 68,928 66,539 69,389 Effect of CESs 243 207 178 225 Diluted 65,901 69,135 66,717 69,614 The number of anti-dilutive CESs during 2018 and 2017 was immaterial. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 7. Contingencies From time to time, we may be involved in litigation relating to claims arising out of the ordinary course of business, and occasionally legal proceedings not in the ordinary course. Many of our installations involve products that are critical to the operations of our clients’ businesses. Any failure in a company’s product could result in a claim for substantial damages against us, regardless of our responsibility for such failure. Although we attempt to limit contractually our 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 our contracts will be enforceable in all instances. We are not currently a party to any legal proceedings the result of which we believe is likely to have a material adverse impact on our business, financial position, results of operations, or cash flows. We expense legal costs associated with loss contingencies as such legal costs are incurred. |
Operating Segments
Operating Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Operating Segments | 8. Operating Segments We manage our business by geographic segment, and have three geographic reportable segments: North and Latin America (the “Americas”); Europe, the Middle East and Africa (EMEA); and Asia Pacific (APAC). All segments derive revenue from the sale and implementation of our 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. We use 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 and cloud subscriptions sold by those reportable segments. The royalties, which totaled approximately $1.4 million and $1.0 million for the quarters ended September 30, 2018 and 2017, respectively, and approximately $3.0 million and $5.4 million for the nine months ended September 30, 2018 and 2017, respectively, are included in costs of revenue for each segment with a corresponding reduction in the Americas segment’s cost of revenue. The revenues represented below are from external customers only. The geography-based costs consist of costs for professional services personnel, direct sales and marketing expenses, infrastructure costs to support the employee and customer base, billing and financial systems, management and general and administrative support. Certain corporate expenses included in the Americas segment are not charged to the other segments. Such expenses include research and development, certain marketing and general and administrative costs that support the global organization, and the amortization of acquired developed technology. Costs in the Americas segment include all research and development costs, including the costs associated with our operations in India. The following table presents our revenues, expenses and operating income by reportable segment for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, 2018 2017 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 7,456 $ 2,743 $ 1,327 $ 11,526 $ 12,364 $ 2,002 $ 1,894 $ 16,260 Cloud subscriptions 5,650 673 132 6,455 2,378 156 - 2,534 Maintenance 29,761 5,268 2,148 37,177 29,178 5,088 2,072 36,338 Services 67,973 12,487 3,676 84,136 67,409 11,207 5,595 84,211 Hardware 3,046 10 1 3,057 13,504 - 36 13,540 Total revenue 113,886 21,181 7,284 142,351 124,833 18,453 9,597 152,883 Costs and Expenses: Cost of revenue 47,099 10,440 3,647 61,186 50,777 8,493 3,802 63,072 Operating expenses 38,655 3,151 1,084 42,890 32,746 2,701 1,070 36,517 Depreciation and amortization 1,932 177 70 2,179 2,092 131 52 2,275 Restructuring charge - - - - (77 ) - - (77 ) Total costs and expenses 87,686 13,768 4,801 106,255 85,538 11,325 4,924 101,787 Operating income $ 26,200 $ 7,413 $ 2,483 $ 36,096 $ 39,295 $ 7,128 $ 4,673 $ 51,096 Nine Months Ended September 30, 2018 2017 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 19,599 $ 7,357 $ 5,098 $ 32,054 $ 35,858 $ 17,076 $ 4,667 $ 57,601 Cloud subscriptions 14,623 1,441 237 16,301 6,252 156 - 6,408 Maintenance 88,340 15,898 6,329 110,567 86,218 13,816 5,639 105,673 Services 198,352 36,995 9,813 245,160 201,820 32,782 14,717 249,319 Hardware 10,532 10 167 10,709 31,458 11 43 31,512 Total revenue 331,446 61,701 21,644 414,791 361,606 63,841 25,066 450,513 Costs and Expenses: Cost of revenue 135,662 31,614 10,785 178,061 149,112 26,715 11,179 187,006 Operating expenses 116,828 10,382 3,293 130,503 99,625 8,743 3,256 111,624 Depreciation and amortization 5,849 565 202 6,616 6,313 392 158 6,863 Restructuring charge - - - - 2,831 114 - 2,945 Total costs and expenses 258,339 42,561 14,280 315,180 257,881 35,964 14,593 308,438 Operating income $ 73,107 $ 19,140 $ 7,364 $ 99,611 $ 103,725 $ 27,877 $ 10,473 $ 142,075 The majority of our software license revenue (70-80%) relates to our warehouse management product group. Cloud subscriptions revenue primarily relates to our Manhattan Active omnichannel and transportation management solutions. |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
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,” “we,” “us,” or “our,” or “Manhattan”) 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 our financial position at September 30, 2018, the results of operations for the three and nine months ended September 30, 2018 and 2017, and cash flows for the nine months ended September 30, 2018 and 2017. The results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year or any other interim period. These statements should be read in conjunction with our audited consolidated financial statements and management’s discussion and analysis included in our annual report on Form 10-K for the year ended December 31, 2017. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications Certain line items in prior period financial statements have been reclassified to conform to the current period presentation in the condensed consolidated statements of income due to our business transition from perpetual software license to cloud subscriptions. We believe separate disclosures of our software license, cloud subscription, maintenance and service revenue are meaningful to investors and provide important measures of our business performance. The line items in prior period financial statements that have been reclassified to conform to the current period presentation in the condensed consolidated statements of income, include: all revenue line items; cost of license; cost of cloud subscriptions, maintenance and services; and cost of hardware. Such reclassifications did not affect total revenues, operating income or net income. |
New Accounting Pronouncements Adopted in Fiscal Year 2018 and Not Yet Adopted | New Accounting Pronouncements Adopted in Fiscal Year 2018 Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606), which, along with its subsequent amendments, replaced substantially all revenue recognition guidance. 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. On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results of reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the previous revenue recognition standard (Topic 605). Historical hardware sales prior to the adoption of Accounting Standards Codification (ASC) 606 were recorded on a gross basis, as we were the principal in the transaction in accordance with ASC 605-45. Under the new standard, we are an agent in the transaction as we do not physically control the hardware which we sell; accordingly, we recognize our hardware revenue net of related cost which reduces both hardware revenue and cost of sales as compared to our accounting prior to 2018. Otherwise, the adoption of ASC 606 does not have a material impact on the measurement or recognition of revenue in any prior or current reporting periods. However, based on expected renewals of maintenance and multi-year cloud subscriptions, we must defer a portion of our sales commission expense and amortize it over time as the corresponding services are transferred to the customer under the new standard. As a result, we recorded a net increase to opening retained earnings of $2.0 million, net of tax, as of January 1, 2018 for commissions expense required to be deferred on contracts not completed as of that date. Had we presented the results for the three and nine months ended September 30, 2018 under Topic 605, we would have presented hardware revenue gross which would have increased hardware revenue and cost of hardware each by $7.5 million and $27.3 million, respectively. We would have also expensed all sales commissions upon contract completion which would have increased sales and marketing expense by $ 0.6 million and $ 1.4 million for the three and nine months ended September 30, 2018 , respectively. Stock Compensation In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07). The new guidance expands the scope of ASC 718, Compensation – Stock Compensation, to include share-based payments granted to nonemployees in exchange for goods or services used or consumed in an entity’s operations, and supersedes the guidance in ASC 505-50, Equity-Based Payments to NonEmployees. Once adopted, the fair value of awards granted to nonemployees will be determined as of the grant date and recognized, in expense, over the service period. Previous guidance required the fair value of awards granted to nonemployees to be remeasured at intervals in determining the expense to be recognized. ASU 2018-07 is effective for public business entities in annual periods beginning after December 15, 2018 (first quarter 2019 for us). We early adopted ASU 2018-07 in the third quarter of 2018, and the adoption did not impact our financial statements. New Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued ASU 2016-02, Leases, which established new ASC Topic 842 (ASC 842), 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 standard will require both types of leases to be recognized on the balance sheet. ASC 842 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. ASC 842 was previously required to be adopted using the modified retrospective approach. However, in July 2018, the FASB issued ASU 2018-11, which allows for retrospective application with the recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Under this option, entities would not need to apply ASC 842 (along with its disclosure requirements) to the comparative prior periods presented. ASC 842 is effective for us in the first quarter of 2019 and we expect that most of our operating leases (primarily office space) will be recognized as operating lease liabilities and right of use assets on our balance sheet. We are continuing to evaluate the impact that the adoption of this standard will have on our financial statements but currently believe it is likely that we will elect to adopt certain of the optional practical expedients, including the package of practical expedients, which, among other things, gives us the option to not reassess: 1) whether expired or existing contracts are or contain leases; 2) the lease classification for expired or existing leases; and 3) initial direct costs for existing leases. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Changes in Unvested Shares/Units of Restricted Stock | A summary of changes in unvested shares/units for the nine months ended September 30, 2018 is as follows: Number of shares/units Outstanding at December 31, 2017 1,036,635 Granted 522,672 Vested (379,312 ) Forfeited (180,956 ) Outstanding at September 30, 2018 999,039 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income and Share Amounts in Computation of Basic and Diluted Net Earnings Per Common Share | The following is a reconciliation of the net income and share amounts used in the computation of basic and diluted net earnings per common share for the three and nine months ended September 30, 2018 and 2017 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in (in thousands, except per share data) Net income $ 28,455 $ 32,599 $ 78,775 $ 91,967 Earnings per share: Basic $ 0.43 $ 0.47 $ 1.18 $ 1.33 Effect of CESs - - - (0.01 ) Diluted $ 0.43 $ 0.47 $ 1.18 $ 1.32 Weighted average number of shares: Basic 65,658 68,928 66,539 69,389 Effect of CESs 243 207 178 225 Diluted 65,901 69,135 66,717 69,614 |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Revenues, Expenses and Operating Income by Reporting Segment | The following table presents our revenues, expenses and operating income by reportable segment for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, 2018 2017 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 7,456 $ 2,743 $ 1,327 $ 11,526 $ 12,364 $ 2,002 $ 1,894 $ 16,260 Cloud subscriptions 5,650 673 132 6,455 2,378 156 - 2,534 Maintenance 29,761 5,268 2,148 37,177 29,178 5,088 2,072 36,338 Services 67,973 12,487 3,676 84,136 67,409 11,207 5,595 84,211 Hardware 3,046 10 1 3,057 13,504 - 36 13,540 Total revenue 113,886 21,181 7,284 142,351 124,833 18,453 9,597 152,883 Costs and Expenses: Cost of revenue 47,099 10,440 3,647 61,186 50,777 8,493 3,802 63,072 Operating expenses 38,655 3,151 1,084 42,890 32,746 2,701 1,070 36,517 Depreciation and amortization 1,932 177 70 2,179 2,092 131 52 2,275 Restructuring charge - - - - (77 ) - - (77 ) Total costs and expenses 87,686 13,768 4,801 106,255 85,538 11,325 4,924 101,787 Operating income $ 26,200 $ 7,413 $ 2,483 $ 36,096 $ 39,295 $ 7,128 $ 4,673 $ 51,096 Nine Months Ended September 30, 2018 2017 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Software license $ 19,599 $ 7,357 $ 5,098 $ 32,054 $ 35,858 $ 17,076 $ 4,667 $ 57,601 Cloud subscriptions 14,623 1,441 237 16,301 6,252 156 - 6,408 Maintenance 88,340 15,898 6,329 110,567 86,218 13,816 5,639 105,673 Services 198,352 36,995 9,813 245,160 201,820 32,782 14,717 249,319 Hardware 10,532 10 167 10,709 31,458 11 43 31,512 Total revenue 331,446 61,701 21,644 414,791 361,606 63,841 25,066 450,513 Costs and Expenses: Cost of revenue 135,662 31,614 10,785 178,061 149,112 26,715 11,179 187,006 Operating expenses 116,828 10,382 3,293 130,503 99,625 8,743 3,256 111,624 Depreciation and amortization 5,849 565 202 6,616 6,313 392 158 6,863 Restructuring charge - - - - 2,831 114 - 2,945 Total costs and expenses 258,339 42,561 14,280 315,180 257,881 35,964 14,593 308,438 Operating income $ 73,107 $ 19,140 $ 7,364 $ 99,611 $ 103,725 $ 27,877 $ 10,473 $ 142,075 |
Basis of Presentation and Pri_3
Basis of Presentation and Principles of Consolidation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Revenue | $ 142,351 | $ 152,883 | $ 414,791 | $ 450,513 | |
Cost | 61,186 | 63,072 | 178,061 | 187,006 | |
Sales and marketing | 10,726 | 10,739 | 37,419 | 34,260 | |
Hardware | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Revenue | 3,057 | 13,540 | 10,709 | 31,512 | |
Cost | $ 10,653 | $ 23,789 | |||
Topic 605 | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Sales and marketing | 600 | 1,400 | |||
Topic 605 | Hardware | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Revenue | 7,500 | 7,500 | |||
Cost | $ 27,300 | $ 27,300 | |||
Retained Earnings | ASU 2016-09 | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Net cumulative-effect of election from adoption of accounting guidance | $ 2,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Expense reimbursement included in services revenue | $ 4,400,000 | $ 5,000,000 | $ 12,100,000 | $ 13,800,000 |
Revenue recognized in the reporting period from performance obligations satisfied in prior periods | 0 | 0 | ||
Revenue expected to be recognized from remaining performance obligations | $ 64,200,000 | $ 64,200,000 | ||
Remaining performance obligation, explanation | We expect to recognize revenue on approximately two-thirds of these remaining performance obligations over the next 24 months with the balance recognized thereafter. | |||
Percentage of expected revenue recognition | 66.67% | |||
Revenue recognized on remaining performance obligations period | 24 months | 24 months | ||
Provision for cost of return and product warranty claims recorded | $ 0 | $ 0 | ||
Allowance for doubtful accounts recorded to operations | 400,000 | $ 3,200,000 | ||
Revenue, practical expedient, remaining performance obligation, description | We apply the practical expedient to expense sales commissions when the amortization period would have been one year or less. | |||
Deferred commissions | 3,200,000 | $ 3,200,000 | ||
Amortization of sales commissions | 300,000 | 700,000 | ||
Impairment losses | 0 | |||
Other Assets | ||||
Disaggregation Of Revenue [Line Items] | ||||
Deferred commissions | 2,200,000 | 2,200,000 | ||
Prepaid Expenses and Other Current Assets | ||||
Disaggregation Of Revenue [Line Items] | ||||
Deferred commissions | 1,000,000 | 1,000,000 | ||
Balance as of December 31, 2017 | ||||
Disaggregation Of Revenue [Line Items] | ||||
Deferred revenue recognized | 13,400,000 | $ 66,800,000 | ||
Balance as of June 30, 2018 | ||||
Disaggregation Of Revenue [Line Items] | ||||
Deferred revenue recognized | $ 38,400,000 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Cash balance | $ 71,800,000 | |
Cash equivalents | 18,000,000 | |
Short-term investments | 4,148,000 | |
Long-term investments | 0 | |
Money market funds | 9,600,000 | $ 10,500,000 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Investments | 0 | |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Investments | $ 0 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock expense | $ 5.3 | $ 3.8 | $ 14.6 | $ 11 |
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of restricted units granted in the period | 13,665 | 97,458 | 522,672 | 458,449 |
Summary of Changes in Unvested
Summary of Changes in Unvested Shares/Units of Restricted Stock (Detail) - Restricted Stock Units - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares/units, Outstanding at December 31, 2017 | 1,036,635 | |||
Number of shares/units, Granted | 13,665 | 97,458 | 522,672 | 458,449 |
Number of shares/units, Vested | (379,312) | |||
Number of shares/units, Forfeited | (180,956) | |||
Number of shares/units, Outstanding at September 30, 2018 | 999,039 | 999,039 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||||
Effective tax rate | 24.40% | 36.50% | 23.40% | 35.20% | ||
Effective statutory tax rate | 21.00% | 21.00% | 35.00% | |||
Decrease in excess tax benefits on restricted stock vestings | $ 1.1 | |||||
Reduced to provisional amounts | $ 0.3 | |||||
Provisional estimate of one-time deemed repatriation transition tax | $ 3.3 | |||||
Deferred tax asset provisional write-down income tax expense benefit | $ 0.7 |
Reconciliation of Net Income an
Reconciliation of Net Income and Share Amounts in Computation of Basic and Diluted Net Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||
Net income | $ 28,455 | $ 32,599 | $ 78,775 | $ 91,967 | $ 116,481 |
Earnings per share: | |||||
Basic | $ 0.43 | $ 0.47 | $ 1.18 | $ 1.33 | |
Effect of CESs | (0.01) | ||||
Diluted | $ 0.43 | $ 0.47 | $ 1.18 | $ 1.32 | |
Weighted average number of shares: | |||||
Basic | 65,658 | 68,928 | 66,539 | 69,389 | |
Effect of CESs | 243 | 207 | 178 | 225 | |
Diluted | 65,901 | 69,135 | 66,717 | 69,614 |
Operating Segments - Additional
Operating Segments - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Segment | Sep. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 3 | |||
Warehouse Management Product Group | Product Concentration Risk | Sales Revenue Net | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of software license revenue | 70.00% | |||
Warehouse Management Product Group | Product Concentration Risk | Sales Revenue Net | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of software license revenue | 80.00% | |||
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Americas royalty fees | $ | $ 1.4 | $ 1 | $ 3 | $ 5.4 |
Revenues, Expenses and Operatin
Revenues, Expenses and Operating Income by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 142,351 | $ 152,883 | $ 414,791 | $ 450,513 |
Cost of revenue | 61,186 | 63,072 | 178,061 | 187,006 |
Operating expenses | 42,890 | 36,517 | 130,503 | 111,624 |
Depreciation and amortization | 2,179 | 2,275 | 6,616 | 6,863 |
Restructuring charge | (77) | 2,945 | ||
Total costs and expenses | 106,255 | 101,787 | 315,180 | 308,438 |
Operating income | 36,096 | 51,096 | 99,611 | 142,075 |
Software License | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 11,526 | 16,260 | 32,054 | 57,601 |
Cost of revenue | 1,211 | 1,316 | 4,615 | 4,106 |
Cloud Subscriptions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 6,455 | 2,534 | 16,301 | 6,408 |
Maintenance | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 37,177 | 36,338 | 110,567 | 105,673 |
Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 84,136 | 84,211 | 245,160 | 249,319 |
Hardware | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,057 | 13,540 | 10,709 | 31,512 |
Cost of revenue | 10,653 | 23,789 | ||
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 113,886 | 124,833 | 331,446 | 361,606 |
Cost of revenue | 47,099 | 50,777 | 135,662 | 149,112 |
Operating expenses | 38,655 | 32,746 | 116,828 | 99,625 |
Depreciation and amortization | 1,932 | 2,092 | 5,849 | 6,313 |
Restructuring charge | (77) | 2,831 | ||
Total costs and expenses | 87,686 | 85,538 | 258,339 | 257,881 |
Operating income | 26,200 | 39,295 | 73,107 | 103,725 |
Americas | Software License | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 7,456 | 12,364 | 19,599 | 35,858 |
Americas | Cloud Subscriptions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 5,650 | 2,378 | 14,623 | 6,252 |
Americas | Maintenance | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 29,761 | 29,178 | 88,340 | 86,218 |
Americas | Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 67,973 | 67,409 | 198,352 | 201,820 |
Americas | Hardware | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,046 | 13,504 | 10,532 | 31,458 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 21,181 | 18,453 | 61,701 | 63,841 |
Cost of revenue | 10,440 | 8,493 | 31,614 | 26,715 |
Operating expenses | 3,151 | 2,701 | 10,382 | 8,743 |
Depreciation and amortization | 177 | 131 | 565 | 392 |
Restructuring charge | 114 | |||
Total costs and expenses | 13,768 | 11,325 | 42,561 | 35,964 |
Operating income | 7,413 | 7,128 | 19,140 | 27,877 |
EMEA | Software License | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 2,743 | 2,002 | 7,357 | 17,076 |
EMEA | Cloud Subscriptions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 673 | 156 | 1,441 | 156 |
EMEA | Maintenance | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 5,268 | 5,088 | 15,898 | 13,816 |
EMEA | Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 12,487 | 11,207 | 36,995 | 32,782 |
EMEA | Hardware | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 10 | 10 | 11 | |
APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 7,284 | 9,597 | 21,644 | 25,066 |
Cost of revenue | 3,647 | 3,802 | 10,785 | 11,179 |
Operating expenses | 1,084 | 1,070 | 3,293 | 3,256 |
Depreciation and amortization | 70 | 52 | 202 | 158 |
Total costs and expenses | 4,801 | 4,924 | 14,280 | 14,593 |
Operating income | 2,483 | 4,673 | 7,364 | 10,473 |
APAC | Software License | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,327 | 1,894 | 5,098 | 4,667 |
APAC | Cloud Subscriptions | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 132 | 237 | ||
APAC | Maintenance | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 2,148 | 2,072 | 6,329 | 5,639 |
APAC | Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,676 | 5,595 | 9,813 | 14,717 |
APAC | Hardware | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 1 | $ 36 | $ 167 | $ 43 |