Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 27, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MANH | ||
Entity Registrant Name | Manhattan Associates, Inc. | ||
Entity Central Index Key | 0001056696 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Incorporation, State or Country Code | 2Q | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 63,154,907 | ||
Entity Public Float | $ 9,182,508,819 | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-23999 | ||
Entity Tax Identification Number | 58-2373424 | ||
Entity Address, Address Line One | 2300 Windy Ridge Parkway | ||
Entity Address, Address Line Two | Tenth Floor | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30339 | ||
City Area Code | 770 | ||
Local Phone Number | 955-7070 | ||
Auditor Name | Ernst & Young | ||
Auditor Firm ID | 42 | ||
Auditor Location | Atlanta, GA | ||
Title of each class | Common Stock, $.01 par value per share | ||
Name of each exchange on which registered | NASDAQ | ||
Documents Incorporated by Reference | The Registrant’s definitive Proxy Statement for the Annual Meeting of Shareholders to be held May 12, 2022 is incorporated by reference in Part III of this Form 10-K to the extent stated herein. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total revenue | $ 663,643 | $ 586,372 | $ 617,949 |
Total costs | 297,827 | 269,887 | 284,967 |
Research and development | 97,628 | 84,276 | 87,608 |
Sales and marketing | 57,855 | 47,758 | 56,860 |
General and administrative | 68,086 | 61,444 | 64,603 |
Depreciation and amortization | 7,914 | 8,946 | 7,987 |
Total costs and expenses | 529,310 | 472,311 | 502,025 |
Operating income | 134,333 | 114,061 | 115,924 |
Interest income | 68 | 98 | 715 |
Other loss, net | (329) | (383) | (562) |
Income before income taxes | 134,072 | 113,776 | 116,077 |
Income tax provision | 23,600 | 26,536 | 30,315 |
Net income | $ 110,472 | $ 87,240 | $ 85,762 |
Basic earnings per share | $ 1.74 | $ 1.37 | $ 1.33 |
Diluted earnings per share | $ 1.72 | $ 1.36 | $ 1.32 |
Weighted average number of shares: | |||
Basic | 63,445 | 63,538 | 64,397 |
Diluted | 64,323 | 64,333 | 65,103 |
Cloud Subscriptions | |||
Total revenue | $ 122,195 | $ 79,830 | $ 46,831 |
Software License | |||
Total revenue | 37,070 | 38,284 | 48,855 |
Total costs | 2,309 | 2,894 | 2,626 |
Maintenance | |||
Total revenue | 145,841 | 147,748 | 149,230 |
Services | |||
Total revenue | 334,799 | 303,569 | 360,516 |
Hardware | |||
Total revenue | 23,738 | 16,941 | 12,517 |
Cloud Subscriptions, Maintenance and Services | |||
Total costs | $ 295,518 | $ 266,993 | $ 282,341 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 110,472 | $ 87,240 | $ 85,762 |
Foreign currency translation adjustment | (1,566) | (415) | (985) |
Comprehensive income | $ 108,906 | $ 86,825 | $ 84,777 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 263,706 | $ 204,705 |
Accounts receivable, net of allowance of $2,419 and $3,497 at December 31, 2021 and December 31, 2020, respectively | 124,420 | 109,202 |
Income taxes receivable | 2,597 | 1,874 |
Prepaid expenses | 17,053 | 14,717 |
Other current assets | 643 | 3,543 |
Total current assets | 408,419 | 334,041 |
Property and equipment, net | 13,889 | 17,903 |
Operating lease right-of-use assets | 27,272 | 31,470 |
Goodwill, net | 62,239 | 62,252 |
Deferred income taxes | 7,650 | 5,760 |
Other assets | 20,239 | 13,986 |
Total assets | 539,708 | 465,412 |
Current liabilities: | ||
Accounts payable | 19,625 | 17,805 |
Accrued compensation and benefits | 53,104 | 41,962 |
Accrued and other liabilities | 22,741 | 21,181 |
Deferred revenue | 153,196 | 114,164 |
Income taxes payable | 376 | 1,874 |
Total current liabilities | 249,042 | 196,986 |
Operating lease liabilities, long-term | 23,157 | 27,843 |
Other non-current liabilities | 16,865 | 21,686 |
Commitments and contingencies (Note 5) | ||
Shareholders' equity: | ||
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding at December 31, 2021 and December 31, 2020 | ||
Common stock, $.01 par value; 200,000,000 shares authorized; 63,154,494 and 63,527,186 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 631 | 635 |
Retained earnings | 269,841 | 236,524 |
Accumulated other comprehensive loss | (19,828) | (18,262) |
Total shareholders' equity | 250,644 | 218,897 |
Total liabilities and shareholders' equity | $ 539,708 | $ 465,412 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 2,419 | $ 3,497 |
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 | 63,154,494 | 63,527,186 |
Common stock, shares outstanding | 63,154,494 | 63,527,186 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | |||
Net income | $ 110,472 | $ 87,240 | $ 85,762 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,914 | 8,946 | 7,987 |
Equity-based compensation | 43,259 | 33,355 | 31,841 |
Loss (gain) on disposal of equipment | 7 | 21 | (429) |
Deferred income taxes | (1,912) | 1,036 | (1,406) |
Unrealized foreign currency (gain) loss | (493) | 897 | (708) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (16,650) | (6,592) | (1,065) |
Other assets | (6,533) | (971) | (8,924) |
Accounts payable, accrued and other liabilities | 12,256 | (3,097) | 20,812 |
Income taxes | (3,667) | 1,886 | 1,180 |
Deferred revenue | 40,530 | 18,164 | 11,858 |
Net cash provided by operating activities | 185,183 | 140,885 | 146,908 |
Investing activities: | |||
Purchases of property and equipment | (4,016) | (2,730) | (15,193) |
Maturities of short-term investments | 1,439 | ||
Net cash used in investing activities | (4,016) | (2,730) | (13,754) |
Financing activities: | |||
Purchase of common stock | (120,418) | (43,561) | (121,487) |
Net cash used in financing activities | (120,418) | (43,561) | (121,487) |
Foreign currency impact on cash | (1,748) | (567) | (115) |
Net change in cash and cash equivalents | 59,001 | 94,027 | 11,552 |
Cash and cash equivalents at beginning of period | 204,705 | 110,678 | 99,126 |
Cash and cash equivalents at end of period | 263,706 | 204,705 | 110,678 |
Supplemental disclosures of cash flow information: | |||
Cash paid for taxes | $ 29,162 | $ 23,766 | $ 30,492 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2018 | $ 147,147 | $ 649 | $ 163,359 | $ (16,861) | |
Balance (in shares) at Dec. 31, 2018 | 64,860,419 | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | ||||
Repurchase of common stock | $ (121,487) | $ (18) | $ (31,837) | (89,631) | |
Repurchase of common stock (in shares) | (1,751,507) | ||||
Restricted stock units issuance | $ 4 | (4) | |||
Restricted stock units issuance (in shares) | 348,074 | ||||
Equity-based compensation | 31,841 | 31,841 | |||
Foreign currency translation adjustment | (985) | (985) | |||
Net income | 85,762 | 85,762 | |||
Balance at Dec. 31, 2019 | 142,278 | $ 635 | 159,490 | (17,847) | |
Balance (in shares) at Dec. 31, 2019 | 63,456,986 | ||||
Repurchase of common stock | (43,561) | $ (6) | (33,349) | (10,206) | |
Repurchase of common stock (in shares) | (562,299) | ||||
Restricted stock units issuance | $ 6 | (6) | |||
Restricted stock units issuance (in shares) | 632,499 | ||||
Equity-based compensation | 33,355 | 33,355 | |||
Foreign currency translation adjustment | (415) | (415) | |||
Net income | 87,240 | 87,240 | |||
Balance at Dec. 31, 2020 | 218,897 | $ 635 | 236,524 | (18,262) | |
Balance (in shares) at Dec. 31, 2020 | 63,527,186 | ||||
Repurchase of common stock | (120,418) | $ (9) | (43,254) | (77,155) | |
Repurchase of common stock (in shares) | (887,782) | ||||
Restricted stock units issuance | $ 5 | (5) | |||
Restricted stock units issuance (in shares) | 515,090 | ||||
Equity-based compensation | 43,259 | $ 43,259 | |||
Foreign currency translation adjustment | (1,566) | (1,566) | |||
Net income | 110,472 | 110,472 | |||
Balance at Dec. 31, 2021 | $ 250,644 | $ 631 | $ 269,841 | $ (19,828) | |
Balance (in shares) at Dec. 31, 2021 | 63,154,494 |
Organization, Consolidation and
Organization, Consolidation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Summary of Significant Accounting Policies | 1. Organization, Consolidation and Summary of Significant Accounting Policies Organization and Business Manhattan Associates, Inc. (“Manhattan”, the “Company”, “we”, “our”, or “us”) is a developer and provider of supply chain commerce solutions that help organizations optimize the effectiveness, efficiency, and strategic advantages of their supply chains. Our solutions consist of software, services, and hardware, which coordinate people, workflows, assets, events, and tasks holistically across the functions linked in a supply chain from planning through execution. These solutions also help coordinate the actions, data exchange, and communication of participants in supply chain ecosystems, such as manufacturers, suppliers, distributors, trading partners, transportation providers, channels (such as catalogers, store retailers, and Web outlets), and consumers. Our operations are in North and South America (the “Americas"), Europe (EMEA), and the Asia/Pacific (APAC) region. The Americas operation are conducted through the Parent Company, Manhattan Associates, Inc., and its wholly-owned subsidiary, Manhattan Associates Chile Spa. The European operations are conducted through our wholly-owned subsidiaries, Manhattan Associates Limited, Manhattan Associates Europe B.V., Manhattan France SARL, and Manhattan Associates GmbH, in the United Kingdom, the Netherlands, France, and Germany, respectively. Our Asia/Pacific operations are conducted through our wholly-owned subsidiaries, Manhattan Associates Pty Ltd., Manhattan Associates KK, Manhattan Associates Software (Shanghai), Co. Ltd., Manhattan Associates Software Pte Ltd., and Manhattan Associates (India) Development Centre Private Limited in Australia, Japan, China, Singapore, and India, respectively. We occasionally sell our products and services in other countries, such as countries in Latin America, Eastern Europe, Middle East, and Asia, through our direct sales channel as well as various reseller channels. Risks Associated with Single Business Line, Technological Advances, and Foreign Operations We currently derive a substantial portion of our revenues from sales of cloud solutions and related services and hardware. The markets for supply chain commerce solutions are highly competitive, subject to rapid technological change, changing customer needs, frequent new product introductions, and evolving industry standards that may render existing products and services obsolete. As a result, our position in these markets could be eroded rapidly by unforeseen changes in customer requirements for application features, functions, and technologies. Our international business is subject to risks typical of an international business, including, but not limited to, differing economic conditions, changes in political climate, differing tax structures, other regulations and restrictions, and foreign exchange rate volatility. We recognized foreign exchange loss of $0.2 million, $0.4 million and $1.0 million in 2021, 2020 and 2019, respectively. Foreign exchange rate transaction gains and losses are classified in “Other (loss) income, net” on the Consolidated Statements of Income. In addition, we have a large development center in Bangalore, India, that does not have a natural in-market revenue hedge to mitigate currency risk to our operating expenses in India. Fluctuations in the value of other currencies, particularly the Indian Rupee, could significantly affect our revenues, expenses, operating profit and net income. Principles of Consolidation and Foreign Currency Translation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements of foreign subsidiaries have been translated into United States dollars in accordance with the foreign currency matters topic in the FASB’s Accounting Standards Codification (the “Codification”). Revenues and expenses from international operations were denominated in the respective local currencies and translated using the average monthly exchange rates for the year. All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date and the effect of changes in exchange rates from year to year are disclosed as a separate component of shareholders’ equity and comprehensive income. New Accounting Pronouncements Adopted in Fiscal Year 2021 Income Taxes In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating taxes during the quarters and the recognition of deferred tax liabilities for outside basis differences. This guidance also simplifies aspects of the accounting for franchise taxes and changes in tax laws or rates, as well as clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. On January 1, 2021, we adopted this guidance, and the adoption did not have a material impact on our financial statements. Summary of Significant Accounting Policies Cash and Cash Equivalents We consider all highly liquid investments purchased with original maturities of three months or less to be cash or cash equivalents. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. We maintain cash and cash equivalents with various financial institutions. Amounts held are above the federally insured limit. Our sales are primarily to companies located in the United States, Europe and Asia. We perform periodic credit evaluations of our customers’ financial condition and do not require collateral. Accounts receivable are due principally from large U.S., European and Asia Pacific companies under stated contract terms. Accounts receivable, net as of December 31, 2021 for the Americas, EMEA, and APAC segments were $100.4 million, $19.5 million, and $4.5 million, respectively. Accounts receivable, net as of December 31, 2020 for the Americas, EMEA, and APAC segments were $86.8 million, $17.3 million, and $5.1 million, respectively. Our top five customers in aggregate accounted for 12%, 12%, and 11% of total revenue recognized for each of the years ended December 31, 2021 (“2021”), the year ended December 31, 2020 (“2020”), and the year ended December 31, 2019 (“2019”), respectively. No single customer accounted for more than 10% of revenue in 2021, 2020 and 2019, or more than 10% of accounts receivable as of December 31, 2021 and 2020. 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 their characteristics. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1–Quoted prices in active markets for identical instruments. Level 2–Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3–Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Investments with maturities of 90 days or less from the date of purchase are classified as cash equivalents; investments with maturities of greater than 90 days from the date of purchase but less than one year are generally classified as short-term investments; and investments with maturities of one year or greater from the date of purchase are generally classified as long-term investments. Unrealized holding gains and losses are reflected as a net amount in a separate component of shareholders’ equity until realized. For the purposes of computing realized gains and losses, cost is determined on a specific identification basis. At December 31, 2021, the Company’s cash and cash equivalents were $249.9 million and $13.8 million, respectively. We currently have no long-term investments. Cash equivalents consist of highly liquid money market funds of $10.0 million and certificates of deposit of $3.8 million. For money market funds, we use quoted prices from active markets that are classified as Level 1, the highest level of observable input in the disclosure hierarchy framework. The Company had no investments at December 31, 2021. The carrying values of cash and cash equivalents, short-term investments, accounts receivable, and accounts payable included in the accompanying Consolidated Balance Sheets approximate their fair values principally due to the short-term maturities of these instruments. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts, which is based upon an evaluation of historical amounts written-off, the customers’ ability to pay, and general economic conditions; self-insurance accruals; impairment testing of goodwill; and our effective income tax rate (including the impact of unrecognized tax benefits) and deferred tax assets, which are based upon our expectations of future taxable income, allowable deductions, and projected tax credits. Actual results will differ from these estimates. 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 cloud subscriptions, software licenses, 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 Cloud subscriptions includes software as a service (“SaaS”) and arrangements which provide customers with the right to use our software within a cloud 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 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. 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, training and application managed services, including reimbursements of out-pocket expenses in connection with our implementation services. Implementation services include system planning, design, configuration, testing, and other software implementation support, and are typically optional and distinct from our software. Following implementation, customers may purchase application managed services to support and maintain 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 Cloud subscriptions and maintenance are typically billed annually in advance. Deferred revenue mainly represents amounts collected prior to having completed performance of maintenance, cloud subscriptions and professional services. $107.8 million of revenue that was included in the deferred revenue balance as of December 31, 2020 was recognized in 2021. No revenue was recognized in 2021 from performance obligations that were satisfied in prior periods. Remaining Performance Obligations As of December 31, 2021, approximately $699.2 million of revenue is expected to be recognized from remaining performance obligations for cloud subscriptions, maintenance contracts, and application managed services 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 40% 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 historical experience of write-offs and a detailed assessment of accounts receivable. Additions to the allowance for credit losses generally represent a sales allowance on services revenue, which are recorded to operations as a reduction to services revenue. Total amount charged to operations in 2021, 2020 and 2019 was $2.5 million, $3.5 million and $3.9 million, respectively. 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 $23.2 million as of December 31, 2021, of which $16.9 million is included in other assets and $6.3 million is included in prepaid expenses. Property and Equipment Property and equipment is recorded at cost and consists of furniture, computers, other office equipment, and leasehold improvements. We depreciate the cost of furniture, computers, and other office equipment on a straight-line basis over their estimated useful lives (five years for office equipment, seven years for furniture and fixtures). Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Depreciation and amortization expense for 2021, 2020 and 2019 was approximately $7.9 million, $8.9 million, and $8.0 million, respectively, and was included in “Depreciation and amortization” in the Consolidated Statements of Income. Amortization expense on intangible assets in 2021, 2020 and 2019 was immaterial. Property and equipment, at cost, consist of the following (in thousands): December 31, 2021 2020 Office equipment $ 37,435 $ 39,250 Furniture and fixtures 5,012 5,051 Leasehold improvement 24,142 24,362 Property and equipment, gross 66,589 68,663 Less accumulated depreciation (52,700 ) (50,760 ) Property and equipment, net $ 13,889 $ 17,903 Software Development Costs Research and development expenses are charged to expense as incurred. For 2021, 2020 and 2019, we did not capitalize any internal research and development costs because the costs incurred between the attainment of technological feasibility for the related software product through the date when the product was available for general release to customers were insignificant. We determine the amount of development costs capitalizable under the provisions of FASB Codification accounting for costs of computer software to be sold, leased, or marketed. Under this guidance, computer software development costs are charged to R&D expense until technological feasibility is established, after which remaining software production costs are capitalized. We have defined technological feasibility as the point in time at which we have a detailed program design or a working model of the related product, depending on the type of development efforts, and high-risk development issues have been resolved through end-to-end system testing. Impairment of Long-Lived Assets We review the values assigned to long-lived assets, including property and certain intangible assets, to determine whether events and circumstances have occurred which indicate that the remaining estimated useful lives may warrant revision or that the remaining balances may not be recoverable. In such reviews, undiscounted cash flows associated with these assets are compared with their carrying value to determine if a write-down to fair value is required. During 2021, 2020 and 2019, we did not recognize any impairment charges associated with our long-lived or intangible assets. The evaluation of asset impairment requires management to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment, and actual results may differ from assumed and estimated amounts. Goodwill and Impairment of Goodwill Goodwill Goodwill represents the excess of the consideration transferred over the fair value of net identified tangible and intangible assets and liabilities acquired. We do not amortize goodwill. Instead, we test goodwill for impairment on at least an annual basis. Goodwill was $62.2 million and $62.3 million at the end of each of the years ended December 31, 2021 and 2020, respectively. Impairment of Goodwill We evaluate the carrying value of goodwill annually as of December 31 and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. We applied the simplified goodwill impairment test for 2021, that permits companies to perform a qualitative assessment based on economic, industry and company-specific factors as the initial step in the annual goodwill impairment test for all or selected reporting units. Based on the results of the qualitative assessment, companies are only required to perform Step 1 of the annual impairment test for a reporting unit if the company concludes that it is not more likely than not that the unit’s fair value is less than its carrying amount. To the extent we conclude that it is more likely than not that a reporting unit’s estimated fair value is less than its carrying amount, the two-step approach is applied. The first step would require a comparison of each reporting unit’s fair value to the respective carrying amount . If the carrying amount exceeds the fair value, a second step is performed to measure the amount of impairment loss, if any. We did not identify any macroeconomic or industry conditions as of December 31, 2021 , that would indicate that the fair value of the reporting units were more likely than not to be less than their respective carrying values. If circumstances change or events occur to indicate that it is more likely than not that the fair value of any reporting units have fallen below their carrying amount , we would record an impairment charge based on that difference. We performed our periodic review of goodwill for impairment as of December 31, 2021 and 2020 , and did not identify any impairment as a result of the review. Guarantees and Indemnities We account for guarantees in accordance with the guarantee accounting topic in the FASB Codification . In general, in our customer software license contracts, we warrant to our customers that our software products will perform in all material respects in accordance with the standard published specifications in effect at the time of delivery of the licensed products to the customer for six months after first use of the licensed products, but no more than 24 months after execution of the license agreement. We also generally warrant in our Cloud subscription agreements that we will perform the Cloud services in all material respects as defined in the agreement during the service period. Additionally, we warrant to our customers that services will be performed consistent with generally accepted industry standards or specific service levels through completion of the agreed upon services. If necessary, we will provide for the estimated cost of product and service warranties based on specific warranty claims history. However, we have not incurred significant recurring expenses under product or service warranties. As a result, we believe the estimated fair value of these agreements is nominal. Accordingly, we have no liabilities recorded for these agreements as of December 31, 2021 and 2020. Segment Information We have three reportable segments as defined by the FASB Codification topic for segment reporting: Americas, EMEA, and APAC. See Note 8 for discussion of our reportable segments. Basic and Diluted Net Income Per Share Basic net income per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for the period presented. Diluted net income per share is computed using net income divided by Weighted Shares and the treasury stock method effect of common equivalent shares (“CESs”) outstanding for each period presented. In the following table, we present a reconciliation of earnings per share and the shares used in the computation of earnings per share for the years ended December 31, 2021, 2020 and 2019 (in thousands, except per share data): Year Ended December 31, 2021 2020 2019 (in thousands, except per share data) Net income $ 110,472 $ 87,240 $ 85,762 Earnings per share: Basic $ 1.74 $ 1.37 $ 1.33 Effect of CESs (0.02 ) (0.01 ) (0.01 ) Diluted $ 1.72 $ 1.36 $ 1.32 Weighted average number of shares: Basic 63,445 63,538 64,397 Effect of CESs 878 795 706 Diluted 64,323 64,333 65,103 The number of anti-dilutive CESs in 2021, 2020 and 2019 was immaterial. See Note 2 for further information on those securities. Accumulated Other Comprehensive Income Comprehensive income includes net income and foreign currency translation adjustments that are excluded from net income and reflected in shareholders’ equity. The entire accumulated other comprehensive income balance as of December 31, 2021 and 2020 represents foreign currency translation adjustments. Accounting for Income Taxes We provide for the effect of income taxes on our financial position and results of operations in accordance with the Income Taxes Topic of the Codification. Under this accounting pronouncement, income tax expense is recognized for the amount of income taxes payable or refundable for the current year and for the change in net deferred tax assets or liabilities resulting from events that are recorded for financial reporting purposes in a different reporting period than recorded in the tax return. Management must make significant assumptions, judgments, and estimates to determine our current provision for income taxes and also, our deferred tax assets and liabilities, and any valuation allowance to be recorded against our net deferred tax asset. Our judgments, assumptions, and estimates relative to the current provision for income tax take into account current tax laws, our interpretation of current tax laws, allowable deductions, projected tax credits, and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. We do not recognize a tax benefit unless we conclude that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, we recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is greater than 50 percent likely to be realized. Changes in tax law or our interpretation of tax laws and the resolution of current and future tax audits could significantly impact the amounts provided for income taxes in our financial position and results of operations. Our assumptions, judgments, and estimates relative to the value of our net deferred tax asset take into account predictions of the amount and category of future taxable income. Actual operating results and the underlying amount and category of income in future years could render our current assumptions, judgments, and estimates of recoverable net deferred taxes inaccurate, thus materially impacting our financial position and results of operations. Equity-Based Compensation We account for equity-based compensation in accordance with ASC 718, Compensation – Stock Compensation. Advertising Costs We expense advertising costs as incurred. Advertising expense was $2.3 million in 2021, $1.6 million in 2020, and immaterial for 2019. R etire We immediately retire shares repurchased pursuant to any share repurchase program. We allocate the share purchase price in excess of par value between additional paid-in capital and retained earnings. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | 2. Equity-Based Compensation Equity Based Compensation Plans In May 2020, the Manhattan Associates, Inc. 2020 Equity Incentive Plan (the “2020 Plan”) was approved by our shareholders. The 2020 Plan provides for the grant of stock options, restricted stock, restricted stock units, and stock appreciation rights. Vesting conditions can be service-based or performance-based, or a combination of both. The number of shares subject to outstanding awards under the 2007 Stock Incentive Plan (the “2007 Plan”) that are forfeited or canceled or expire after the Effective Date, in accordance with the terms of the 2007 Plan, are counted as one share toward the 2020 Plan. A maximum of 4,500,000 shares are available for grant under the amended 2020 Plan. Each stock option, stock appreciation right, restricted stock, or restricted stock unit granted is counted against the maximum share limitation as one share. Options and stock appreciation rights cannot have a term exceeding seven years. As of December 31, 2021, there were 4,085,825 shares available for issuance under the 2020 Plan. The 2020 Plan is administered by the Compensation Committee of the Board of Directors. The committee has the authority to interpret the provisions thereof. The restricted stock awards contain vesting provisions that are 50% service based and 50% performance based for employee awards and 100% service based for non-employee members of the Board of Directors (“Outside Directors”). The employee awards have a four year vesting period, with the performance portion tied to annual revenue and earnings per share targets. The awards to Outside Directors have a one year vesting period. We recognize compensation cost for service-based restricted awards with graded vesting on a straight-line basis over the entire vesting period, with the amount of compensation cost recognized at any date at least equal to the portion of the grant-date value of the award that is vested at that date. For our performance-based restricted stock awards with graded vesting, we recognize compensation cost on an accelerated basis applying straight-line expensing for each separately vesting portion of each award. Restricted Stock Awards We present below a summary of changes in unvested units of restricted stock during 2021: Number of Units Grant Date Fair Value Outstanding at January 1, 2021 1,462,864 $59.48 Granted 515,724 128.62 Vested (515,090) 57.01 Forfeited (75,031) 78.58 Outstanding at December 31, 2021 1,388,467 $85.05 The Company recorded equity-based compensation expense related to restricted stock and RSUs (collectively “restricted stock awards”) of $43.3 million, $33.4 million, and $31.8 million in 2021, 2020 and 2019, respectively. The total fair value of restricted stock awards vested in 2021, 2020 and 2019, based on market value at the vesting dates was $59.8 million, $52.2 million, and $18.2 million, respectively. The weighted average grant-date fair value of RSUs granted during fiscal year 2021, 2020 and 2019 was $128.62, $77.2 and $49.48, respectively. As of December 31, 2021, unrecognized compensation cost related to unvested RSU totaled $70.3 million and is expected to be recognized over a weighted average period of approximately 2.6 years. In January 2017, we elected to recognize forfeitures of equity-based payments as they occur. Included in RSU grants for the year ended December 31, 2021 are 144,788 units that have performance-based vesting criteria granted at target level for 2021 and performance adjustments above target level for 2020. The performance criteria are tied to our financial performance. As of December 31, 2021, the associated equity-based compensation expense has been recognized for the portion of the award attributable to the 2021 performance criteria. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 3. Income Taxes We are subject to future federal, state, and foreign income taxes and have recorded net deferred tax assets on the Consolidated Balance Sheets at December 31, 2021 and 2020. Deferred tax assets and liabilities are determined based on the difference between the financial accounting and tax bases of assets and liabilities. We present below significant components of our deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Accounts receivable $ 570 $ 832 Accrued liabilities 9,273 8,407 Equity-based compensation 7,763 5,902 Capitalized costs 515 578 Accrued sales taxes 196 145 Operating lease liabilities 4,593 8,828 State tax credits 4,521 3,408 Foreign subsidiary net operating losses - 78 Tax credit - foreign 1,238 - Valuation allowance (4,403) (3,375) Other 531 659 24,797 25,462 Deferred tax liabilities: Intangible Assets 7,380 7,414 Depreciation 666 1,250 Deferred commissions 4,763 2,713 Operating lease right-of-use assets 4,338 8,325 17,147 19,702 Net deferred tax assets $ 7,650 $ 5,760 We present below income from domestic and foreign operations before income tax expense for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands): Year Ended December 31, 2021 2020 2019 Domestic $ 120,565 $ 101,681 $ 104,878 Foreign 13,507 12,095 11,199 Total $ 134,072 $ 113,776 $ 116,077 The components of our income tax provision for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current: Federal 14,042 $ 13,860 $ 18,682 State 5,188 4,793 5,711 Foreign 6,309 6,847 7,323 25,539 $ 25,500 $ 31,716 Deferred: Federal (427 ) (393 ) (863 ) State (531 ) 1,113 (326 ) Foreign (981 ) 316 (212 ) (1,939 ) 1,036 (1,401 ) Total $ 23,600 $ 26,536 $ 30,315 We currently have a tax holiday in India under the Special Economic Zone Act through March 2029. As a result of this holiday, we had pre-tax income of approximately $8.7 million, for the year ended December 31, 2021, that was not subject to tax. Separately, we are subject to India’s Minimum Alternate Tax (“MAT”) and accordingly incurred income tax expense of approximately $1.2 million in 2021. The impact on diluted earnings per share if the income had been fully taxable would have been a decrease of $0.02 per share in 2021. We have tax credit carry-forwards of approximately $5.7 million available to offset future state tax. These tax credit carry-forwards expire in 2025 to 2031. These credits represent a deferred tax asset of $4.5 million after consideration of the federal benefit of state tax deductions. A valuation allowance of $3.2 million has been established for these credits because the ability to use them is not more likely than not. We also have a tax credit carry-forward of approximately $1.2 million available to offset future foreign tax. This tax credit carryforward expires in 2036. At December 31, 2021 we had approximately $62.2 million of undistributed earnings and profits. The undistributed earnings and profits are considered previously taxed income and would not be subject to U.S. income taxes upon repatriation of those earnings, in the form of dividends. The undistributed earnings and profits are considered to be permanently reinvested, accordingly no provision for local withholdings taxes have been provided, however, upon repatriation of those earnings, in the form of dividends, we could be subject to additional local withholding taxes. We present below a summary of the items that cause recorded income taxes to differ from taxes computed using the statutory federal income tax rate for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State income tax, net of federal benefit 3.6 3.9 3.5 State credit carryforwards (0.8 ) 0.5 1.3 U.S. federal R&D tax credit (1.8 ) (1.9 ) (1.9 ) Excess benefit of equity compensation (4.9 ) (3.4 ) (0.1 ) Employee compensation limitation 3.4 2.7 2.1 Global Intangible Low Taxed Income (GILTI) 0.2 0.1 - Foreign-derived intangible income (FDII) deduction (3.1 ) (2.7 ) (3.1 ) Foreign operations (0.7 ) 1.0 1.1 Tax contingencies (0.3 ) 1.9 3.7 Other permanent differences 0.3 (0.2 ) (0.6 ) Change in valuation allowance 0.7 0.4 (0.9 ) Income taxes 17.6 % 23.3 % 26.1 % A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31, 2021, 2020 and 2019 (in thousands): December 31, 2021 2020 2019 Unrecognized tax benefits at January 1, $ (12,804 ) $ (11,239 ) $ (7,113 ) Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during a prior period (408 ) (118 ) (2,428 ) Gross amount of decreases in unrecognized tax benefits as a result of tax positions taken during a prior period 147 1,598 445 Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during the current period (3,117 ) (3,256 ) (2,489 ) Reductions to unrecognized tax benefits relating to settlements with taxing authorities 148 - - Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations 2,848 211 346 Unrecognized tax benefits at December 31, $ (13,186 ) $ (12,804 ) $ (11,239 ) Our unrecognized tax benefits totaled $13.2 million and $12.8 million as of December 31, 2021 and 2020, respectively. Included in these amounts are unrecognized tax benefits totaling $11.8 million and $11.9 million as of December 31, 2021 and 2020, respectively, which, if recognized, would affect the effective tax rate. We recognize potential accrued interest and penalties related to unrecognized tax benefits within our global operations in income tax expense. For the years ended December 31, 2021, 2020 and 2019, the Company recognized the following income tax expense: $0.4 million, $0.4 million, and $0.5 million, respectively, for the potential payment of interest and penalties. Accrued interest and penalties were $1.3 million and $2.0 million for the years ended December 31, 2021 and 2020. We conduct business globally and, as a result, file income tax returns in the United State federal jurisdiction and in many state and foreign jurisdictions. We are generally no longer subject to U.S. federal, state, and local, or non-US income tax examinations for the years before 2010. Due to the expiration of statutes of limitations in multiple jurisdictions globally during 2020, the Company anticipates it is reasonably possible that unrecognized tax benefits may decrease by $2.6 million. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 4. Shareholders’ Equity During 2021, 2020 and 2019, we purchased 709,200, 337,007, and 1,640,055 shares of the Company’s common stock for $100.0 million, $25.0 million, and $115.9 million, respectively, through open market transactions as part of a publicly-announced share repurchase program. In January 2022, our Board of Directors authorized the Company to repurchase up to an aggregate of $50 million of our common stock. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 5. Contingencies From time to time, we may be involved in litigation relating to claims arising in the ordinary course of business, and occasionally legal proceeding not in the ordinary course. Many of our installations involve products that are critical to the operations of our clients’ businesses. Any failure in our company’s products could result in a claim for substantial damages against us, regardless of our responsibility for such failure. Although we attempt to contractually limit 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 its contracts will be enforceable in all instances. We are not currently a party to any legal proceeding in the ordinary course of business or other legal proceedings the result of which we believe is likely to have a material adverse impact upon our business, financial position, results of operations, or cash flows. We expense legal costs associated with loss contingencies as such legal costs are incurred. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | 6. Employee Benefit Plan We sponsor the Manhattan Associates 401(k) Plan and Trust (the “401(k) Plan”), a qualified profit sharing plan with a 401(k) feature covering substantially all our employees. Under the 401(k) Plan’s deferred compensation arrangement, eligible employees who elect to participate in the 401(k) Plan may contribute up to 60% of eligible compensation up to $19,500, as defined, to the 401(k) Plan. The Internal Revenue Service sets the eligible compensation limit at $290,000 for 2021. Since 2012, we have provided a 50% 6% |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 7. Leases We lease our facilities and some of our equipment under noncancelable operating lease arrangements that expire at various dates through 2029. The total operating lease liabilities for these leases at December 31, 2021 was approximately $30.0 million. In 2014, we amended our Atlanta headquarters lease to obtain additional space and extended the lease term to September 2025. As part of this amended lease agreement, we received reimbursement of $1.3 million from the landlord in 2018 for leasehold improvements. For a few of our facility leases, we have certain options to extend the lease term for up to 10 years, at our sole discretion. We have no finance leases. We present below the operating lease right-of-use assets and lease liabilities as of December 31, 2021 (in thousands): December 31, 2021 ASSETS Operating lease right-of-use assets $27,272 LIABILITIES Operating lease liabilities, current (included in accrued and other liabilities) $6,813 Operating lease liabilities, long-term 23,157 Total operating lease liabilities $29,970 Aggregate future minimum lease payments under noncancelable operating leases as of December 31, 2021 are as follows (in thousands): Year Ending December 31, 2022 7,364 2023 7,116 2024 6,369 2025 5,568 2026 2,732 Thereafter 4,911 Total minimum payments required 34,060 Less short-term leases - Less imputed interest (4,090) Total operating lease liabilities $29,970 We are applying the practical expedient to not separate lease and non-lease components, which allows us to account for lease and non-lease components as a single lease component. The total lease cost in 2021 was $7.9 million, consisting of $7.5 million of operating lease costs, and $0.4 million of short-term lease costs. The total lease cost in 2020 was $7.9 million, consisting of $7.5 million of operating lease costs, and $0.4 million of short-term lease costs. Total lease costs in were $ million, consisting of $8.0 million of operating lease costs, and $0.4 million of short-term lease costs. Weighted average remaining lease term 5.1 years Weighted average discount rate 2 % Supplemental cash flow information - operating cash flows (in thousands): Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 7,197 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | 8. Segment Reporting We manage our business by geographic segment and have three geographic reportable segments: the Americas, EMEA, and 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 cloud subscriptions and software licenses sold by those reportable segments. The royalties, which totaled $6.1 million, $3.8 million, and $4.5 million in 2021, 2020 and 2019, respectively, are included in costs of revenue for each segment with a corresponding reduction in the America’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. There are certain corporate expenses included in the Americas segment that we do not charge 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. In accordance with the segment reporting topic of the FASB Codification, we present below financial information by reportable segment for 2021, 2020 and 2019 (in thousands): Year Ended December 31, 2021 2020 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 103,863 $ 15,380 $ 2,952 $ 122,195 $ 69,469 $ 8,465 $ 1,896 $ 79,830 Software license 29,300 5,729 2,041 37,070 30,509 4,308 3,467 38,284 Maintenance 113,169 23,091 9,581 145,841 116,309 22,208 9,231 147,748 Services 256,392 66,131 12,276 334,799 232,954 58,360 12,255 303,569 Hardware 23,491 243 4 23,738 16,698 241 2 16,941 Total revenue 526,215 110,574 26,854 663,643 465,939 93,582 26,851 586,372 Costs and Expenses: Cost of revenue 225,799 58,593 13,435 297,827 202,421 53,661 13,805 269,887 Operating expenses 202,217 16,496 4,856 223,569 174,477 14,461 4,540 193,478 Depreciation and amortization 7,020 738 156 7,914 7,932 823 191 8,946 Total costs and expenses 435,036 75,827 18,447 529,310 384,830 68,945 18,536 472,311 Operating income $ 91,179 $ 34,747 $ 8,407 $ 134,333 $ 81,109 $ 24,637 $ 8,315 $ 114,061 Year Ended December 31, 2019 Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 40,927 $ 4,762 $ 1,142 $ 46,831 Software license 34,544 11,518 2,793 48,855 Maintenance 118,891 21,322 9,017 $ 149,230 Services 283,008 60,618 16,890 360,516 Hardware 12,464 53 - $ 12,517 Total revenue 489,834 98,273 29,842 617,949 Costs and Expenses: Cost of revenue 218,850 51,938 14,179 284,967 Operating expenses 185,399 18,635 5,037 209,071 Depreciation and amortization 6,961 766 260 7,987 Total costs and expenses 411,210 71,339 19,476 502,025 Operating income $ 78,624 $ 26,934 $ 10,366 $ 115,924 In the following table, we present goodwill, long-lived assets, and total assets by reportable segment as of December 31, 2021 and 2020 (in thousands): As of December 31, 2021 As of December 31, 2020 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Goodwill, net $ 54,766 $ 5,510 $ 1,963 $ 62,239 $ 54,766 $ 5,523 $ 1,963 $ 62,252 Long lived assets 51,246 8,214 1,940 61,400 54,309 8,015 1,035 63,359 Total assets 468,600 54,021 17,087 539,708 405,618 47,529 12,265 465,412 For the years ended December 31, 2021, 2020 and 2019, we derived revenue from sales to customers outside the United States of approximately $196.4 million, $178.1 million, and $189.1 million, respectively. Our remaining revenue was derived from domestic sales. Cloud subscriptions revenue primarily relates to the following product groups: Manhattan Active omnichannel, warehouse management solutions, and transportation management solutions. The majority of our software license revenue (approximately 85%) relates to our warehouse management product group. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events We evaluated all subsequent events that occurred after the date of the accompanying financial statements and determined that there were no events or transactions during this subsequent event reporting period which require recognition or disclosure in our financial statements. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS (in thousands) Classification: Balance at Beginning of Period Additions Charged to Operations Net Deductions Balance at End of Period Allowance for Doubtful Accounts For the year ended: December 31, 2019 $ 2,589 $ 3,858 $ 3,621 (a) $ 2,826 December 31, 2020 $ 2,826 $ 3,451 $ 2,780 (a) $ 3,497 December 31, 2021 $ 3,497 $ 2,471 $ 3,549 (a) $ 2,419 Deferred Tax Asset Valuation Allowance For the year ended: December 31, 2019 $ 3,846 $ - $ 960 (b) $ 2,886 December 31, 2020 $ 2,886 $ 489 $ - (b) $ 3,375 December 31, 2021 $ 3,375 $ 1,028 $ - (b) $ 4,403 (a) Represents write-offs of accounts, net of recoveries. (b) Represents current year releases credited to expenses and current year reductions due to decreases in net deferred tax assets. (c) Represents current year cash payments. |
Organization, Consolidation a_2
Organization, Consolidation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Risks Associated with Single Business Line, Technological Advances, and Foreign Operations | Risks Associated with Single Business Line, Technological Advances, and Foreign Operations We currently derive a substantial portion of our revenues from sales of cloud solutions and related services and hardware. The markets for supply chain commerce solutions are highly competitive, subject to rapid technological change, changing customer needs, frequent new product introductions, and evolving industry standards that may render existing products and services obsolete. As a result, our position in these markets could be eroded rapidly by unforeseen changes in customer requirements for application features, functions, and technologies. Our international business is subject to risks typical of an international business, including, but not limited to, differing economic conditions, changes in political climate, differing tax structures, other regulations and restrictions, and foreign exchange rate volatility. We recognized foreign exchange loss of $0.2 million, $0.4 million and $1.0 million in 2021, 2020 and 2019, respectively. Foreign exchange rate transaction gains and losses are classified in “Other (loss) income, net” on the Consolidated Statements of Income. In addition, we have a large development center in Bangalore, India, that does not have a natural in-market revenue hedge to mitigate currency risk to our operating expenses in India. Fluctuations in the value of other currencies, particularly the Indian Rupee, could significantly affect our revenues, expenses, operating profit and net income. |
Principles of Consolidation and Foreign Currency Translation | Principles of Consolidation and Foreign Currency Translation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements of foreign subsidiaries have been translated into United States dollars in accordance with the foreign currency matters topic in the FASB’s Accounting Standards Codification (the “Codification”). Revenues and expenses from international operations were denominated in the respective local currencies and translated using the average monthly exchange rates for the year. All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date and the effect of changes in exchange rates from year to year are disclosed as a separate component of shareholders’ equity and comprehensive income. |
New Accounting Pronouncements Adopted in Fiscal Year 2021 | New Accounting Pronouncements Adopted in Fiscal Year 2021 Income Taxes In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating taxes during the quarters and the recognition of deferred tax liabilities for outside basis differences. This guidance also simplifies aspects of the accounting for franchise taxes and changes in tax laws or rates, as well as clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. On January 1, 2021, we adopted this guidance, and the adoption did not have a material impact on our financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments purchased with original maturities of three months or less to be cash or cash equivalents. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. We maintain cash and cash equivalents with various financial institutions. Amounts held are above the federally insured limit. Our sales are primarily to companies located in the United States, Europe and Asia. We perform periodic credit evaluations of our customers’ financial condition and do not require collateral. Accounts receivable are due principally from large U.S., European and Asia Pacific companies under stated contract terms. Accounts receivable, net as of December 31, 2021 for the Americas, EMEA, and APAC segments were $100.4 million, $19.5 million, and $4.5 million, respectively. Accounts receivable, net as of December 31, 2020 for the Americas, EMEA, and APAC segments were $86.8 million, $17.3 million, and $5.1 million, respectively. Our top five customers in aggregate accounted for 12%, 12%, and 11% of total revenue recognized for each of the years ended December 31, 2021 (“2021”), the year ended December 31, 2020 (“2020”), and the year ended December 31, 2019 (“2019”), respectively. No single customer accounted for more than 10% of revenue in 2021, 2020 and 2019, or more than 10% of accounts receivable as of December 31, 2021 and 2020. |
Fair Value Measurement | 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 their characteristics. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1–Quoted prices in active markets for identical instruments. Level 2–Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3–Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Investments with maturities of 90 days or less from the date of purchase are classified as cash equivalents; investments with maturities of greater than 90 days from the date of purchase but less than one year are generally classified as short-term investments; and investments with maturities of one year or greater from the date of purchase are generally classified as long-term investments. Unrealized holding gains and losses are reflected as a net amount in a separate component of shareholders’ equity until realized. For the purposes of computing realized gains and losses, cost is determined on a specific identification basis. At December 31, 2021, the Company’s cash and cash equivalents were $249.9 million and $13.8 million, respectively. We currently have no long-term investments. Cash equivalents consist of highly liquid money market funds of $10.0 million and certificates of deposit of $3.8 million. For money market funds, we use quoted prices from active markets that are classified as Level 1, the highest level of observable input in the disclosure hierarchy framework. The Company had no investments at December 31, 2021. The carrying values of cash and cash equivalents, short-term investments, accounts receivable, and accounts payable included in the accompanying Consolidated Balance Sheets approximate their fair values principally due to the short-term maturities of these instruments. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates include the allowance for doubtful accounts, which is based upon an evaluation of historical amounts written-off, the customers’ ability to pay, and general economic conditions; self-insurance accruals; impairment testing of goodwill; and our effective income tax rate (including the impact of unrecognized tax benefits) and deferred tax assets, which are based upon our expectations of future taxable income, allowable deductions, and projected tax credits. Actual results will differ from these estimates. |
Revenue Recognition | 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 cloud subscriptions, software licenses, 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 Cloud subscriptions includes software as a service (“SaaS”) and arrangements which provide customers with the right to use our software within a cloud 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 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. 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, training and application managed services, including reimbursements of out-pocket expenses in connection with our implementation services. Implementation services include system planning, design, configuration, testing, and other software implementation support, and are typically optional and distinct from our software. Following implementation, customers may purchase application managed services to support and maintain 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 Cloud subscriptions and maintenance are typically billed annually in advance. Deferred revenue mainly represents amounts collected prior to having completed performance of maintenance, cloud subscriptions and professional services. $107.8 million of revenue that was included in the deferred revenue balance as of December 31, 2020 was recognized in 2021. No revenue was recognized in 2021 from performance obligations that were satisfied in prior periods. Remaining Performance Obligations As of December 31, 2021, approximately $699.2 million of revenue is expected to be recognized from remaining performance obligations for cloud subscriptions, maintenance contracts, and application managed services 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 40% 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. 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 $23.2 million as of December 31, 2021, of which $16.9 million is included in other assets and $6.3 million is included in prepaid expenses. |
Returns and Allowances | 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 historical experience of write-offs and a detailed assessment of accounts receivable. Additions to the allowance for credit losses generally represent a sales allowance on services revenue, which are recorded to operations as a reduction to services revenue. Total amount charged to operations in 2021, 2020 and 2019 was $2.5 million, $3.5 million and $3.9 million, respectively. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost and consists of furniture, computers, other office equipment, and leasehold improvements. We depreciate the cost of furniture, computers, and other office equipment on a straight-line basis over their estimated useful lives (five years for office equipment, seven years for furniture and fixtures). Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Depreciation and amortization expense for 2021, 2020 and 2019 was approximately $7.9 million, $8.9 million, and $8.0 million, respectively, and was included in “Depreciation and amortization” in the Consolidated Statements of Income. Amortization expense on intangible assets in 2021, 2020 and 2019 was immaterial. Property and equipment, at cost, consist of the following (in thousands): December 31, 2021 2020 Office equipment $ 37,435 $ 39,250 Furniture and fixtures 5,012 5,051 Leasehold improvement 24,142 24,362 Property and equipment, gross 66,589 68,663 Less accumulated depreciation (52,700 ) (50,760 ) Property and equipment, net $ 13,889 $ 17,903 |
Software Development Costs | Software Development Costs Research and development expenses are charged to expense as incurred. For 2021, 2020 and 2019, we did not capitalize any internal research and development costs because the costs incurred between the attainment of technological feasibility for the related software product through the date when the product was available for general release to customers were insignificant. We determine the amount of development costs capitalizable under the provisions of FASB Codification accounting for costs of computer software to be sold, leased, or marketed. Under this guidance, computer software development costs are charged to R&D expense until technological feasibility is established, after which remaining software production costs are capitalized. We have defined technological feasibility as the point in time at which we have a detailed program design or a working model of the related product, depending on the type of development efforts, and high-risk development issues have been resolved through end-to-end system testing. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review the values assigned to long-lived assets, including property and certain intangible assets, to determine whether events and circumstances have occurred which indicate that the remaining estimated useful lives may warrant revision or that the remaining balances may not be recoverable. In such reviews, undiscounted cash flows associated with these assets are compared with their carrying value to determine if a write-down to fair value is required. During 2021, 2020 and 2019, we did not recognize any impairment charges associated with our long-lived or intangible assets. The evaluation of asset impairment requires management to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment, and actual results may differ from assumed and estimated amounts. |
Goodwill and Impairment of Goodwill | Goodwill and Impairment of Goodwill Goodwill Goodwill represents the excess of the consideration transferred over the fair value of net identified tangible and intangible assets and liabilities acquired. We do not amortize goodwill. Instead, we test goodwill for impairment on at least an annual basis. Goodwill was $62.2 million and $62.3 million at the end of each of the years ended December 31, 2021 and 2020, respectively. Impairment of Goodwill We evaluate the carrying value of goodwill annually as of December 31 and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. We applied the simplified goodwill impairment test for 2021, that permits companies to perform a qualitative assessment based on economic, industry and company-specific factors as the initial step in the annual goodwill impairment test for all or selected reporting units. Based on the results of the qualitative assessment, companies are only required to perform Step 1 of the annual impairment test for a reporting unit if the company concludes that it is not more likely than not that the unit’s fair value is less than its carrying amount. To the extent we conclude that it is more likely than not that a reporting unit’s estimated fair value is less than its carrying amount, the two-step approach is applied. The first step would require a comparison of each reporting unit’s fair value to the respective carrying amount . If the carrying amount exceeds the fair value, a second step is performed to measure the amount of impairment loss, if any. We did not identify any macroeconomic or industry conditions as of December 31, 2021 , that would indicate that the fair value of the reporting units were more likely than not to be less than their respective carrying values. If circumstances change or events occur to indicate that it is more likely than not that the fair value of any reporting units have fallen below their carrying amount , we would record an impairment charge based on that difference. We performed our periodic review of goodwill for impairment as of December 31, 2021 and 2020 , and did not identify any impairment as a result of the review. |
Guarantees and Indemnities | Guarantees and Indemnities We account for guarantees in accordance with the guarantee accounting topic in the FASB Codification . In general, in our customer software license contracts, we warrant to our customers that our software products will perform in all material respects in accordance with the standard published specifications in effect at the time of delivery of the licensed products to the customer for six months after first use of the licensed products, but no more than 24 months after execution of the license agreement. We also generally warrant in our Cloud subscription agreements that we will perform the Cloud services in all material respects as defined in the agreement during the service period. Additionally, we warrant to our customers that services will be performed consistent with generally accepted industry standards or specific service levels through completion of the agreed upon services. If necessary, we will provide for the estimated cost of product and service warranties based on specific warranty claims history. However, we have not incurred significant recurring expenses under product or service warranties. As a result, we believe the estimated fair value of these agreements is nominal. Accordingly, we have no liabilities recorded for these agreements as of December 31, 2021 and 2020. |
Segment Information | Segment Information We have three reportable segments as defined by the FASB Codification topic for segment reporting: Americas, EMEA, and APAC. See Note 8 for discussion of our reportable segments. |
Basic and Diluted Net Income Per Share | Basic and Diluted Net Income Per Share Basic net income per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for the period presented. Diluted net income per share is computed using net income divided by Weighted Shares and the treasury stock method effect of common equivalent shares (“CESs”) outstanding for each period presented. In the following table, we present a reconciliation of earnings per share and the shares used in the computation of earnings per share for the years ended December 31, 2021, 2020 and 2019 (in thousands, except per share data): Year Ended December 31, 2021 2020 2019 (in thousands, except per share data) Net income $ 110,472 $ 87,240 $ 85,762 Earnings per share: Basic $ 1.74 $ 1.37 $ 1.33 Effect of CESs (0.02 ) (0.01 ) (0.01 ) Diluted $ 1.72 $ 1.36 $ 1.32 Weighted average number of shares: Basic 63,445 63,538 64,397 Effect of CESs 878 795 706 Diluted 64,323 64,333 65,103 The number of anti-dilutive CESs in 2021, 2020 and 2019 was immaterial. See Note 2 for further information on those securities. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Comprehensive income includes net income and foreign currency translation adjustments that are excluded from net income and reflected in shareholders’ equity. The entire accumulated other comprehensive income balance as of December 31, 2021 and 2020 represents foreign currency translation adjustments. |
Accounting for Income Taxes | Accounting for Income Taxes We provide for the effect of income taxes on our financial position and results of operations in accordance with the Income Taxes Topic of the Codification. Under this accounting pronouncement, income tax expense is recognized for the amount of income taxes payable or refundable for the current year and for the change in net deferred tax assets or liabilities resulting from events that are recorded for financial reporting purposes in a different reporting period than recorded in the tax return. Management must make significant assumptions, judgments, and estimates to determine our current provision for income taxes and also, our deferred tax assets and liabilities, and any valuation allowance to be recorded against our net deferred tax asset. Our judgments, assumptions, and estimates relative to the current provision for income tax take into account current tax laws, our interpretation of current tax laws, allowable deductions, projected tax credits, and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. We do not recognize a tax benefit unless we conclude that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, we recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is greater than 50 percent likely to be realized. Changes in tax law or our interpretation of tax laws and the resolution of current and future tax audits could significantly impact the amounts provided for income taxes in our financial position and results of operations. Our assumptions, judgments, and estimates relative to the value of our net deferred tax asset take into account predictions of the amount and category of future taxable income. Actual operating results and the underlying amount and category of income in future years could render our current assumptions, judgments, and estimates of recoverable net deferred taxes inaccurate, thus materially impacting our financial position and results of operations. |
Equity-Based Compensation | Equity-Based Compensation We account for equity-based compensation in accordance with ASC 718, Compensation – Stock Compensation. |
Advertising Costs | Advertising Costs We expense advertising costs as incurred. Advertising expense was $2.3 million in 2021, $1.6 million in 2020, and immaterial for 2019. |
Retirement of Repurchased Shares | R etire We immediately retire shares repurchased pursuant to any share repurchase program. We allocate the share purchase price in excess of par value between additional paid-in capital and retained earnings. |
Organization, Consolidation a_3
Organization, Consolidation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Property and Equipment | Property and equipment, at cost, consist of the following (in thousands): December 31, 2021 2020 Office equipment $ 37,435 $ 39,250 Furniture and fixtures 5,012 5,051 Leasehold improvement 24,142 24,362 Property and equipment, gross 66,589 68,663 Less accumulated depreciation (52,700 ) (50,760 ) Property and equipment, net $ 13,889 $ 17,903 |
Reconciliation of Earnings per Share and Shares in Computation of Earnings Per Share | In the following table, we present a reconciliation of earnings per share and the shares used in the computation of earnings per share for the years ended December 31, 2021, 2020 and 2019 (in thousands, except per share data): Year Ended December 31, 2021 2020 2019 (in thousands, except per share data) Net income $ 110,472 $ 87,240 $ 85,762 Earnings per share: Basic $ 1.74 $ 1.37 $ 1.33 Effect of CESs (0.02 ) (0.01 ) (0.01 ) Diluted $ 1.72 $ 1.36 $ 1.32 Weighted average number of shares: Basic 63,445 63,538 64,397 Effect of CESs 878 795 706 Diluted 64,323 64,333 65,103 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Changes in Unvested Units of Restricted Stock | We present below a summary of changes in unvested units of restricted stock during 2021: Number of Units Grant Date Fair Value Outstanding at January 1, 2021 1,462,864 $59.48 Granted 515,724 128.62 Vested (515,090) 57.01 Forfeited (75,031) 78.58 Outstanding at December 31, 2021 1,388,467 $85.05 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets and Liabilities | We present below significant components of our deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Accounts receivable $ 570 $ 832 Accrued liabilities 9,273 8,407 Equity-based compensation 7,763 5,902 Capitalized costs 515 578 Accrued sales taxes 196 145 Operating lease liabilities 4,593 8,828 State tax credits 4,521 3,408 Foreign subsidiary net operating losses - 78 Tax credit - foreign 1,238 - Valuation allowance (4,403) (3,375) Other 531 659 24,797 25,462 Deferred tax liabilities: Intangible Assets 7,380 7,414 Depreciation 666 1,250 Deferred commissions 4,763 2,713 Operating lease right-of-use assets 4,338 8,325 17,147 19,702 Net deferred tax assets $ 7,650 $ 5,760 |
Components of Income from Domestic and Foreign Operations Before Income Tax Expense | We present below income from domestic and foreign operations before income tax expense for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands): Year Ended December 31, 2021 2020 2019 Domestic $ 120,565 $ 101,681 $ 104,878 Foreign 13,507 12,095 11,199 Total $ 134,072 $ 113,776 $ 116,077 |
Components of Income Tax Provision | The components of our income tax provision for the years ended December 31, 2021, 2020 and 2019 are as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current: Federal 14,042 $ 13,860 $ 18,682 State 5,188 4,793 5,711 Foreign 6,309 6,847 7,323 25,539 $ 25,500 $ 31,716 Deferred: Federal (427 ) (393 ) (863 ) State (531 ) 1,113 (326 ) Foreign (981 ) 316 (212 ) (1,939 ) 1,036 (1,401 ) Total $ 23,600 $ 26,536 $ 30,315 |
Reconciliation of Statutory U.S. Federal Rate and Tax Effective Rates | We present below a summary of the items that cause recorded income taxes to differ from taxes computed using the statutory federal income tax rate for the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State income tax, net of federal benefit 3.6 3.9 3.5 State credit carryforwards (0.8 ) 0.5 1.3 U.S. federal R&D tax credit (1.8 ) (1.9 ) (1.9 ) Excess benefit of equity compensation (4.9 ) (3.4 ) (0.1 ) Employee compensation limitation 3.4 2.7 2.1 Global Intangible Low Taxed Income (GILTI) 0.2 0.1 - Foreign-derived intangible income (FDII) deduction (3.1 ) (2.7 ) (3.1 ) Foreign operations (0.7 ) 1.0 1.1 Tax contingencies (0.3 ) 1.9 3.7 Other permanent differences 0.3 (0.2 ) (0.6 ) Change in valuation allowance 0.7 0.4 (0.9 ) Income taxes 17.6 % 23.3 % 26.1 % |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31, 2021, 2020 and 2019 (in thousands): December 31, 2021 2020 2019 Unrecognized tax benefits at January 1, $ (12,804 ) $ (11,239 ) $ (7,113 ) Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during a prior period (408 ) (118 ) (2,428 ) Gross amount of decreases in unrecognized tax benefits as a result of tax positions taken during a prior period 147 1,598 445 Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during the current period (3,117 ) (3,256 ) (2,489 ) Reductions to unrecognized tax benefits relating to settlements with taxing authorities 148 - - Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations 2,848 211 346 Unrecognized tax benefits at December 31, $ (13,186 ) $ (12,804 ) $ (11,239 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of Operating Lease Right-of-Use Assets and Lease Liabilities | We present below the operating lease right-of-use assets and lease liabilities as of December 31, 2021 (in thousands): December 31, 2021 ASSETS Operating lease right-of-use assets $27,272 LIABILITIES Operating lease liabilities, current (included in accrued and other liabilities) $6,813 Operating lease liabilities, long-term 23,157 Total operating lease liabilities $29,970 |
Aggregate Future Minimum Lease Payments Under Noncancelable Operating Leases | Aggregate future minimum lease payments under noncancelable operating leases as of December 31, 2021 are as follows (in thousands): Year Ending December 31, 2022 7,364 2023 7,116 2024 6,369 2025 5,568 2026 2,732 Thereafter 4,911 Total minimum payments required 34,060 Less short-term leases - Less imputed interest (4,090) Total operating lease liabilities $29,970 |
Schedule of Other Information Related to Leases | Weighted average remaining lease term 5.1 years Weighted average discount rate 2 % Supplemental cash flow information - operating cash flows (in thousands): Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 7,197 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Segment | In accordance with the segment reporting topic of the FASB Codification, we present below financial information by reportable segment for 2021, 2020 and 2019 (in thousands): Year Ended December 31, 2021 2020 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 103,863 $ 15,380 $ 2,952 $ 122,195 $ 69,469 $ 8,465 $ 1,896 $ 79,830 Software license 29,300 5,729 2,041 37,070 30,509 4,308 3,467 38,284 Maintenance 113,169 23,091 9,581 145,841 116,309 22,208 9,231 147,748 Services 256,392 66,131 12,276 334,799 232,954 58,360 12,255 303,569 Hardware 23,491 243 4 23,738 16,698 241 2 16,941 Total revenue 526,215 110,574 26,854 663,643 465,939 93,582 26,851 586,372 Costs and Expenses: Cost of revenue 225,799 58,593 13,435 297,827 202,421 53,661 13,805 269,887 Operating expenses 202,217 16,496 4,856 223,569 174,477 14,461 4,540 193,478 Depreciation and amortization 7,020 738 156 7,914 7,932 823 191 8,946 Total costs and expenses 435,036 75,827 18,447 529,310 384,830 68,945 18,536 472,311 Operating income $ 91,179 $ 34,747 $ 8,407 $ 134,333 $ 81,109 $ 24,637 $ 8,315 $ 114,061 Year Ended December 31, 2019 Americas EMEA APAC Consolidated Revenue: Cloud subscriptions $ 40,927 $ 4,762 $ 1,142 $ 46,831 Software license 34,544 11,518 2,793 48,855 Maintenance 118,891 21,322 9,017 $ 149,230 Services 283,008 60,618 16,890 360,516 Hardware 12,464 53 - $ 12,517 Total revenue 489,834 98,273 29,842 617,949 Costs and Expenses: Cost of revenue 218,850 51,938 14,179 284,967 Operating expenses 185,399 18,635 5,037 209,071 Depreciation and amortization 6,961 766 260 7,987 Total costs and expenses 411,210 71,339 19,476 502,025 Operating income $ 78,624 $ 26,934 $ 10,366 $ 115,924 |
Goodwill, Long-Lived Assets and Total Assets by Reportable Segment | In the following table, we present goodwill, long-lived assets, and total assets by reportable segment as of December 31, 2021 and 2020 (in thousands): As of December 31, 2021 As of December 31, 2020 Americas EMEA APAC Consolidated Americas EMEA APAC Consolidated Goodwill, net $ 54,766 $ 5,510 $ 1,963 $ 62,239 $ 54,766 $ 5,523 $ 1,963 $ 62,252 Long lived assets 51,246 8,214 1,940 61,400 54,309 8,015 1,035 63,359 Total assets 468,600 54,021 17,087 539,708 405,618 47,529 12,265 465,412 |
Organization, Consolidation a_4
Organization, Consolidation and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2021USD ($)CustomerSegment | Dec. 31, 2020USD ($)Customer | Dec. 31, 2019USD ($)Customer | |
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2021 | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
Accounting Standard Update Extensible List | (ASU) 2019-12 | ||
Percentage of revenue accounted for by top 5 customers | 12.00% | 12.00% | 11.00% |
Number of customers accounting for more than 10% of revenue | Customer | 0 | 0 | 0 |
Number of customers accounting for more than 10% of accounts receivable | Customer | 0 | 0 | |
Cash | $ 249,900,000 | ||
Cash equivalents | 13,800,000 | ||
Long-term investments | 0 | ||
Money market funds | 10,000,000 | ||
Investments | 0 | ||
Revenue recognized in the reporting period from performance obligations satisfied in prior periods | 0 | ||
Revenue expected to be recognized from remaining performance obligations | $ 699,200,000 | ||
Remaining performance obligation, explanation | We expect to recognize revenue on approximately 40% of these remaining performance obligations over the next 24 months with the balance recognized thereafter. | ||
Percentage of expected revenue recognition | 40.00% | ||
Allowance for doubtful accounts recorded to operations | $ 2,500,000 | $ 3,500,000 | $ 3,900,000 |
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. | ||
Amortization of sales commissions | $ 5,200,000 | 3,100,000 | 1,900,000 |
Impairment losses | 0 | 0 | 0 |
Depreciation and amortization expense | 7,914,000 | 8,946,000 | 7,987,000 |
Impairment charges of long-lived assets | 0 | 0 | 0 |
Impairment charges of intangible assets | 0 | 0 | 0 |
Goodwill, net | $ 62,239,000 | 62,252,000 | |
Customer's license amortization period | 5 years | ||
Number of reportable segments | Segment | 3 | ||
Advertising expense | $ 2,300,000 | 1,600,000 | |
Office Equipment | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated useful life | 5 years | ||
Furniture and Fixtures | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated useful life | 7 years | ||
Leasehold Improvements | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Leasehold improvements useful life | lesser of their useful lives or the term of the lease. | ||
Balance as of December 31, 2020 | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Deferred revenue recognized | $ 107,800,000 | ||
Sales Commission | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Deferred commissions | 23,200,000 | 12,900,000 | |
Sales Commission | Other Assets | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Deferred commissions | 16,900,000 | 9,200,000 | |
Sales Commission | Prepaid Expenses | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Deferred commissions | 6,300,000 | 3,700,000 | |
Americas | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Accounts receivable, net | 100,400,000 | 86,800,000 | |
Depreciation and amortization expense | 7,020,000 | 7,932,000 | 6,961,000 |
Goodwill, net | 54,766,000 | 54,766,000 | |
EMEA | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Accounts receivable, net | 19,500,000 | 17,300,000 | |
Depreciation and amortization expense | 738,000 | 823,000 | 766,000 |
Goodwill, net | 5,510,000 | 5,523,000 | |
APAC | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Accounts receivable, net | 4,500,000 | 5,100,000 | |
Depreciation and amortization expense | 156,000 | 191,000 | 260,000 |
Goodwill, net | 1,963,000 | 1,963,000 | |
India | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Certificates of deposit | 3,800,000 | ||
Other (Loss) Income, Net | |||
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |||
Foreign exchange gain (loss) | $ (200,000) | $ (400,000) | $ (1,000,000) |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 66,589 | $ 68,663 |
Less accumulated depreciation | (52,700) | (50,760) |
Property and equipment, net | 13,889 | 17,903 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 37,435 | 39,250 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 5,012 | 5,051 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 24,142 | $ 24,362 |
Reconciliation of Earnings per
Reconciliation of Earnings per Share and Shares in Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income | $ 110,472 | $ 87,240 | $ 85,762 |
Earnings per share: | |||
Basic | $ 1.74 | $ 1.37 | $ 1.33 |
Effect of CESs | (0.02) | (0.01) | (0.01) |
Diluted | $ 1.72 | $ 1.36 | $ 1.32 |
Weighted average number of shares: | |||
Basic | 63,445 | 63,538 | 64,397 |
Effect of CESs | 878 | 795 | 706 |
Diluted | 64,323 | 64,333 | 65,103 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock expense | $ 43.3 | $ 33.4 | $ 31.8 |
Stock Compensation Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of restricted stock and restricted stock units awarded for service based vesting | 50.00% | ||
Percentage of restricted stock and restricted stock units awarded for performance based vesting | 50.00% | ||
Award vesting period (years) | 4 years | ||
Non Employee Director Restricted Equity Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of restricted stock and restricted stock units awarded for service based vesting | 100.00% | ||
Award vesting period (years) | 1 year | ||
Restricted Stock and Restricted Stock Unit | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total fair value of restricted stock awards vested | $ 59.8 | $ 52.2 | $ 18.2 |
RSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant-date fair value of granted | $ 128.62 | $ 77.2 | $ 49.48 |
Unrecognized compensation cost related to unvested restricted stock | $ 70.3 | ||
Unrecognized compensation cost related to unvested award, period of recognition | 2 years 7 months 6 days | ||
Number of restricted units granted in the period | 515,724 | ||
Performance Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of restricted units granted in the period | 144,788 | ||
2020 Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum shares available for grant | 4,500,000 | ||
Shares available for issuance | 4,085,825 | ||
2020 Stock Incentive Plan | Stock Option, Stock Appreciation Right, Restricted Stock, or Restricted Stock Unit | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted share count against share available | 1 | ||
2020 Stock Incentive Plan | Stock Options and Stock Appreciation Rights | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award term (years) | 7 years |
Summary of Changes in Unvested
Summary of Changes in Unvested Units of Restricted Stock (Detail) - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of units, Outstanding at January 1, 2021 | 1,462,864 | ||
Number of units, Granted | 515,724 | ||
Number of units, Vested | (515,090) | ||
Number of units, Forfeited | (75,031) | ||
Number of units, Outstanding at December 31, 2021 | 1,388,467 | 1,462,864 | |
Grant date fair value, Outstanding at January 1, 2021 | $ 59.48 | ||
Grant date fair value, Granted | 128.62 | $ 77.2 | $ 49.48 |
Grant date fair value, Vested | 57.01 | ||
Grant date fair value, Forfeited | 78.58 | ||
Grant date fair value, Outstanding at December 31, 2021 | $ 85.05 | $ 59.48 |
Components of Deferred Tax Asse
Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Accounts receivable | $ 570 | $ 832 |
Accrued liabilities | 9,273 | 8,407 |
Equity-based compensation | 7,763 | 5,902 |
Capitalized costs | 515 | 578 |
Accrued sales taxes | 196 | 145 |
Operating lease liabilities | 4,593 | 8,828 |
State tax credits | 4,521 | 3,408 |
Foreign subsidiary net operating losses | 78 | |
Tax credit - foreign | 1,238 | |
Valuation allowance | (4,403) | (3,375) |
Other | 531 | 659 |
Deferred Tax Assets, Net of Valuation Allowance, Total | 24,797 | 25,462 |
Deferred tax liabilities: | ||
Intangible Assets | 7,380 | 7,414 |
Depreciation | 666 | 1,250 |
Deferred commissions | 4,763 | 2,713 |
Operating lease right-of-use assets | 4,338 | 8,325 |
Deferred Tax Liabilities, Net, Total | 17,147 | 19,702 |
Net deferred tax assets | $ 7,650 | $ 5,760 |
Components of Income from Domes
Components of Income from Domestic and Foreign Operations Before Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 120,565 | $ 101,681 | $ 104,878 |
Foreign | 13,507 | 12,095 | 11,199 |
Income before income taxes | $ 134,072 | $ 113,776 | $ 116,077 |
Components of Income Tax Provis
Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 14,042 | $ 13,860 | $ 18,682 |
State | 5,188 | 4,793 | 5,711 |
Foreign | 6,309 | 6,847 | 7,323 |
Current Income Tax Expense (Benefit), Total | 25,539 | 25,500 | 31,716 |
Deferred: | |||
Federal | (427) | (393) | (863) |
State | (531) | 1,113 | (326) |
Foreign | (981) | 316 | (212) |
Deferred Income Tax Expense (Benefit), Total | (1,939) | 1,036 | (1,401) |
Total | $ 23,600 | $ 26,536 | $ 30,315 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||||
Tax credit carry-forwards | $ 5,700 | |||
Tax credit carry-forwards deferred tax asset | 4,521 | $ 3,408 | ||
Tax credit carry-forwards, valuation allowance | 3,200 | |||
Pre-tax income due to tax holiday | 134,072 | 113,776 | $ 116,077 | |
Income tax provision | $ 23,600 | 26,536 | 30,315 | |
Decrease in diluted earnings per share | $ (0.02) | |||
Undistributed earnings and profits | $ 62,200 | |||
Unrecognized tax benefits | 13,186 | 12,804 | 11,239 | $ 7,113 |
Unrecognized tax benefits which, if recognized, would affect the effective tax rate | 11,800 | 11,900 | ||
Accrued interest and penalties recognized related to unrecognized tax benefits | 400 | 400 | $ 500 | |
Accrued interest and penalties | 1,300 | $ 2,000 | ||
Reasonably possible amount of decrease in unrecognized tax benefit over the next twelve months | $ 2,600 | |||
Earliest Tax Year | ||||
Income Taxes [Line Items] | ||||
Tax credit carry-forwards, expiration dates | 2025 | |||
Latest Tax Year | ||||
Income Taxes [Line Items] | ||||
Tax credit carry-forwards, expiration dates | 2031 | |||
Foreign | ||||
Income Taxes [Line Items] | ||||
Tax credit carry-forwards | $ 1,200 | |||
Tax credit carry-forwards, expiration dates | 2036 | |||
Special Economic Zone Act | ||||
Income Taxes [Line Items] | ||||
Pre-tax income due to tax holiday | $ 8,700 | |||
Minimum Alternate Tax | ||||
Income Taxes [Line Items] | ||||
Income tax provision | $ 1,200 |
Reconciliation of Statutory U.S
Reconciliation of Statutory U.S. Federal Rate and Tax Effective Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
State income tax, net of federal benefit | 3.60% | 3.90% | 3.50% |
State credit carryforwards | (0.80%) | 0.50% | 1.30% |
U.S. federal R&D tax credit | (1.80%) | (1.90%) | (1.90%) |
Excess benefit of equity compensation | (4.90%) | (3.40%) | (0.10%) |
Employee compensation limitation | 3.40% | 2.70% | 2.10% |
Global Intangible Low Taxed Income (GILTI) | 0.20% | 0.10% | |
Foreign-derived intangible income (FDII) deduction | (3.10%) | (2.70%) | (3.10%) |
Foreign operations | (0.70%) | 1.00% | 1.10% |
Tax contingencies | (0.30%) | 1.90% | 3.70% |
Other permanent differences | 0.30% | (0.20%) | (0.60%) |
Change in valuation allowance | 0.70% | 0.40% | (0.90%) |
Income taxes | 17.60% | 23.30% | 26.10% |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits at January 1, | $ (12,804) | $ (11,239) | $ (7,113) |
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during a prior period | (408) | (118) | (2,428) |
Gross amount of decreases in unrecognized tax benefits as a result of tax positions taken during a prior period | 147 | 1,598 | 445 |
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during the current period | (3,117) | (3,256) | (2,489) |
Reductions to unrecognized tax benefits relating to settlements with taxing authorities | 148 | ||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | 2,848 | 211 | 346 |
Unrecognized tax benefits at December 31, | $ (13,186) | $ (12,804) | $ (11,239) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 31, 2022 | |
Stockholders Equity Note [Line Items] | ||||
Common stock shares purchased under publicly-announced share repurchase program | 709,200 | 337,007 | 1,640,055 | |
Common stock purchased under publicly-announced share repurchase program, value | $ 100,000,000 | $ 25,000,000 | $ 115,900,000 | |
Subsequent Event | ||||
Stockholders Equity Note [Line Items] | ||||
Stock Repurchase program, authorized amount | $ 50,000,000 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Maximum contribution percentage of eligible compensation by eligible employees toward 401(k) plan | 60.00% | ||
Maximum contribution amount that employee can contribute to 401(k) plan | $ 19,500 | ||
Eligible compensation limit | $ 290,000 | ||
Defined benefit plan percentage of employer matching contribution on 6% of employee compensation | 50.00% | 50.00% | 50.00% |
Defined benefit plan employer matching contribution | $ 5,200,000 | $ 1,700,000 | $ 5,000,000 |
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of employees' eligible compensation for employer matching contribution | 6.00% | 6.00% | 6.00% |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2014 | |
Leases [Line Items] | |||||
Total operating lease liabilities | $ 29,970 | ||||
Option to extend, lease term | 10 years | ||||
Total lease cost | $ 7,900 | $ 7,900 | $ 8,400 | ||
Operating lease costs | 7,500 | 7,500 | 8,000 | ||
Short-term lease costs | 400 | $ 400 | $ 400 | ||
India | |||||
Leases [Line Items] | |||||
Total operating lease liabilities | $ 30,000 | ||||
Atlanta | |||||
Leases [Line Items] | |||||
Operating lease term extended date, month and year | 2025-09 | ||||
Leasehold improvement reimbursement received | $ 1,300 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Operating lease right-of-use assets | $ 27,272 | $ 31,470 |
LIABILITIES | ||
Operating lease liabilities, current (included in accrued and other liabilities) | $ 6,813 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent, us-gaap:OtherLiabilitiesCurrent | |
Operating lease liabilities, long-term | $ 23,157 | $ 27,843 |
Total operating lease liabilities | $ 29,970 |
Leases - Aggregate Future Minim
Leases - Aggregate Future Minimum Lease Payments Under Noncancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 | $ 7,364 |
2023 | 7,116 |
2024 | 6,369 |
2025 | 5,568 |
2026 | 2,732 |
Thereafter | 4,911 |
Total minimum payments required | 34,060 |
Less imputed interest | (4,090) |
Total operating lease liabilities | $ 29,970 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Leases [Abstract] | |
Weighted average remaining lease term | 5 years 1 month 6 days |
Weighted average discount rate | 2.00% |
Supplemental cash flow information - operating cash flows (in thousands): | |
Operating cash flows for operating leases | $ 7,197 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 3 | ||
Revenue from sales to customers | $ 663,643 | $ 586,372 | $ 617,949 |
Warehouse Management Product Group | Product Concentration Risk | Sales Revenue, Net | |||
Segment Reporting Information [Line Items] | |||
Percentage of software license revenue | 85.00% | ||
Americas | |||
Segment Reporting Information [Line Items] | |||
Americas royalty fees | $ 6,100 | 3,800 | 4,500 |
Revenue from sales to customers | 526,215 | 465,939 | 489,834 |
Outside United States | |||
Segment Reporting Information [Line Items] | |||
Revenue from sales to customers | $ 196,400 | $ 178,100 | $ 189,100 |
Schedule of Financial Informati
Schedule of Financial Information by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 663,643 | $ 586,372 | $ 617,949 |
Cost of revenue | 297,827 | 269,887 | 284,967 |
Operating expenses | 223,569 | 193,478 | 209,071 |
Depreciation and amortization | 7,914 | 8,946 | 7,987 |
Total costs and expenses | 529,310 | 472,311 | 502,025 |
Operating income | 134,333 | 114,061 | 115,924 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 526,215 | 465,939 | 489,834 |
Cost of revenue | 225,799 | 202,421 | 218,850 |
Operating expenses | 202,217 | 174,477 | 185,399 |
Depreciation and amortization | 7,020 | 7,932 | 6,961 |
Total costs and expenses | 435,036 | 384,830 | 411,210 |
Operating income | 91,179 | 81,109 | 78,624 |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 110,574 | 93,582 | 98,273 |
Cost of revenue | 58,593 | 53,661 | 51,938 |
Operating expenses | 16,496 | 14,461 | 18,635 |
Depreciation and amortization | 738 | 823 | 766 |
Total costs and expenses | 75,827 | 68,945 | 71,339 |
Operating income | 34,747 | 24,637 | 26,934 |
APAC | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 26,854 | 26,851 | 29,842 |
Cost of revenue | 13,435 | 13,805 | 14,179 |
Operating expenses | 4,856 | 4,540 | 5,037 |
Depreciation and amortization | 156 | 191 | 260 |
Total costs and expenses | 18,447 | 18,536 | 19,476 |
Operating income | 8,407 | 8,315 | 10,366 |
Cloud Subscriptions | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 122,195 | 79,830 | 46,831 |
Cloud Subscriptions | Americas | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 103,863 | 69,469 | 40,927 |
Cloud Subscriptions | EMEA | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 15,380 | 8,465 | 4,762 |
Cloud Subscriptions | APAC | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,952 | 1,896 | 1,142 |
Software License | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 37,070 | 38,284 | 48,855 |
Cost of revenue | 2,309 | 2,894 | 2,626 |
Software License | Americas | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 29,300 | 30,509 | 34,544 |
Software License | EMEA | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5,729 | 4,308 | 11,518 |
Software License | APAC | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,041 | 3,467 | 2,793 |
Maintenance | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 145,841 | 147,748 | 149,230 |
Maintenance | Americas | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 113,169 | 116,309 | 118,891 |
Maintenance | EMEA | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 23,091 | 22,208 | 21,322 |
Maintenance | APAC | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 9,581 | 9,231 | 9,017 |
Services | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 334,799 | 303,569 | 360,516 |
Services | Americas | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 256,392 | 232,954 | 283,008 |
Services | EMEA | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 66,131 | 58,360 | 60,618 |
Services | APAC | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 12,276 | 12,255 | 16,890 |
Hardware | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 23,738 | 16,941 | 12,517 |
Hardware | Americas | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 23,491 | 16,698 | 12,464 |
Hardware | EMEA | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 243 | 241 | $ 53 |
Hardware | APAC | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 4 | $ 2 |
Goodwill, Long-Lived Assets and
Goodwill, Long-Lived Assets and Total Assets by Reportable Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Goodwill, net | $ 62,239 | $ 62,252 |
Long lived assets | 61,400 | 63,359 |
Total assets | 539,708 | 465,412 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Goodwill, net | 54,766 | 54,766 |
Long lived assets | 51,246 | 54,309 |
Total assets | 468,600 | 405,618 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Goodwill, net | 5,510 | 5,523 |
Long lived assets | 8,214 | 8,015 |
Total assets | 54,021 | 47,529 |
APAC | ||
Segment Reporting Information [Line Items] | ||
Goodwill, net | 1,963 | 1,963 |
Long lived assets | 1,940 | 1,035 |
Total assets | $ 17,087 | $ 12,265 |
SCHEDULE II - Valuation and Qua
SCHEDULE II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Allowance for Doubtful Accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 3,497 | $ 2,826 | $ 2,589 | |
Additions Charged to Operations | 2,471 | 3,451 | 3,858 | |
Net Deductions | [1] | 3,549 | 2,780 | 3,621 |
Balance at End of Period | 2,419 | 3,497 | 2,826 | |
Deferred Tax Asset Valuation Allowance | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 3,375 | 2,886 | 3,846 | |
Additions Charged to Operations | 1,028 | 489 | ||
Net Deductions | [2] | 960 | ||
Balance at End of Period | $ 4,403 | $ 3,375 | $ 2,886 | |
[1] | Represents write-offs of accounts, net of recoveries. | |||
[2] | Represents current year releases credited to expenses and current year reductions due to decreases in net deferred tax assets. |