Pfsweb (PFSW) 10-Q 12 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 07, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Entity Registrant Name	PFSWEB INC
Entity Central Index Key	0001095315
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Current Reporting Status	Yes
Shell Company	false
Entity Common Stock, Shares Outstanding		19,432,410

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 13,511	$ 15,419
Restricted cash	207	207
Accounts receivable, net of allowance for doubtful accounts of $917 and $585 at September 30, 2019 and December 31, 2018, respectively	50,613	72,415
Inventories, net of reserves of $291 and $298 at September 30, 2019 and December 31, 2018, respectively	4,061	6,090
Other receivables	3,018	4,014
Prepaid expenses and other current assets	5,678	6,943
Total current assets	77,088	105,088
PROPERTY AND EQUIPMENT:
Cost	101,742	97,744
Less: accumulated depreciation	(82,276)	(76,248)
PROPERTY AND EQUIPMENT	19,466	21,496
OPERATING LEASE RIGHT-OF-USE ASSETS	36,340
IDENTIFIABLE INTANGIBLES, net	1,301	1,803
GOODWILL	44,936	45,185
OTHER ASSETS	3,829	3,501
Total assets	182,960	177,073
CURRENT LIABILITIES:
Trade accounts payable	32,992	47,580
Accrued expenses	18,004	24,623
Current portion of operating lease liabilities	8,457
Current portion of long-term debt and finance lease obligations	3,002	2,610
Deferred revenues	4,287	7,328
Total current liabilities	66,742	82,141
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS, less current portion	33,811	39,348
DEFERRED REVENUES, less current portion	1,532	1,927
DEFERRED RENT		4,625
OPERATING LEASE LIABILITIES	33,581
OTHER LIABILITIES	2,929	2,449
Total liabilities	138,595	130,490
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Preferred stock, $1.00 par value; 1,000,000 shares authorized; none issued or outstanding	0	0
Common stock, $0.001 par value; 35,000,000 shares authorized; 19,465,877 and 19,294,296 issued at September 30, 2019 and December 31, 2018, respectively; and 19,432,410 and 19,260,829 outstanding at September 30, 2019 and December 31, 2018, respectively	19	19
Additional paid-in capital	157,346	155,455
Accumulated deficit	(111,550)	(107,773)
Accumulated other comprehensive loss	(1,325)	(993)
Treasury stock at cost, 33,467 shares	(125)	(125)
Total shareholders’ equity	44,365	46,583
Total liabilities and shareholders’ equity	$ 182,960	$ 177,073

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 917	$ 585
Inventories reserves	$ 291	$ 298
Preferred stock, par value (in USD per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	35,000,000	35,000,000
Common stock, shares issued (in shares)	19,465,877	19,294,296
Common stock, shares outstanding (in shares)	19,432,410	19,260,829
Treasury stock, shares (in shares)	33,467	33,467

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
REVENUES:
Total revenues	$ 67,991	$ 77,701	$ 208,650	$ 233,173
COSTS OF REVENUES:
Total costs of revenues	50,356	58,017	155,242	171,870
Gross profit	17,635	19,684	53,408	61,303
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	18,886	19,007	55,329	59,423
Income (loss) from operations	(1,251)	677	(1,921)	1,880
INTEREST EXPENSE, net	458	612	1,418	1,802
Income (loss) before income taxes	(1,709)	65	(3,339)	78
INCOME TAX (BENEFIT) EXPENSE, net	(71)	751	438	2,140
Net loss	$ (1,638)	$ (686)	$ (3,777)	$ (2,062)
NET LOSS PER SHARE:
Basic (in USD per share)	$ (0.08)	$ (0.04)	$ (0.19)	$ (0.11)
Diluted (in USD per share)	$ (0.08)	$ (0.04)	$ (0.19)	$ (0.11)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic (in shares)	19,432	19,258	19,454	19,193
Diluted (in shares)	19,432	19,258	19,454	19,193
COMPREHENSIVE LOSS:
Net loss	$ (1,638)	$ (686)	$ (3,777)	$ (2,062)
Foreign currency translation adjustment	(458)	(399)	(332)	(1,181)
TOTAL COMPREHENSIVE LOSS	(2,096)	(1,085)	(4,109)	(3,243)
Service fee revenue
REVENUES:
Total revenues	49,602	52,890	151,371	162,519
COSTS OF REVENUES:
Total costs of revenues	32,296	33,576	99,062	102,478
Product revenue, net
REVENUES:
Total revenues	6,579	8,469	20,216	27,081
COSTS OF REVENUES:
Total costs of revenues	6,250	8,099	19,117	25,819
Pass-through revenue
REVENUES:
Total revenues	11,810	16,342	37,063	43,573
COSTS OF REVENUES:
Total costs of revenues	$ 11,810	$ 16,342	$ 37,063	$ 43,573

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,777)	$ (2,062)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	7,942	8,697
Amortization of debt issuance costs	59	115
Provision for doubtful accounts	1,016	44
Provision for excess and obsolete inventory	(4)	123
Loss on disposal of fixed assets	129	42
Deferred income taxes	258	119
Stock-based compensation expense	2,181	3,073
Changes in operating assets and liabilities:
Accounts receivable	20,194	18,836
Inventories	2,030	(35)
Prepaid expenses, other receivables and other assets	7,828	3,828
Trade accounts payable, deferred revenues, accrued expenses and other liabilities	(25,814)	(22,286)
Net cash provided by operating activities	12,042	10,494
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(3,164)	(4,008)
Proceeds from sale of property and equipment	0	59
Net cash used in investing activities	(3,164)	(3,949)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock	14	350
Taxes paid on behalf of employees for withheld shares	(304)	(363)
Payments on performance-based contingent payments	0	(3,268)
Payments on finance lease obligations	(1,330)
Payments on finance lease obligations		(1,969)
Payments on term loan	0	(2,250)
Payments on revolving loan	(107,703)	(87,347)
Borrowings on revolving loan	101,294	86,614
Payments on other debt	(3,522)	(2,332)
Borrowings on other debt	1,105	0
Net cash used in financing activities	(10,446)	(10,565)
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(340)	(800)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,908)	(4,820)
Cash and cash equivalents, beginning of period	15,419	19,078
Restricted cash, beginning of period	207	214
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period	15,626	19,292
Cash and cash equivalents, end of period	13,511	14,258
Restricted cash, end of period	207	214
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	15,626	19,292
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	726	1,130
Cash paid for interest	1,451	1,682
Non-cash investing and financing activities:
Property and equipment acquired under long-term debt and finance leases	2,357	1,159
Performance-based contingent payments through stock issuance	$ 0	$ 822

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning balance at Dec. 31, 2017	$ 41,296	$ 19	$ 150,613	$ (109,281)	$ 70	$ (125)
Beginning balance (in shares) at Dec. 31, 2017		19,058,685				33,467
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(2,062)			(2,062)
Stock-based compensation expense	3,073		3,073
Exercise of stock options (in shares)		68,698
Exercise of stock options	350		350
Shares issued related to acquisitions (in shares)		76,998
Shares issued related to acquisitions	822		822
Issuance of restricted stock (in shares)		87,178
Issuance of restricted stock	0
Tax withholding on restricted stock	(363)		(363)
Foreign currency translation adjustment, net of taxes	(1,181)				(1,181)
Ending balance (in shares) at Sep. 30, 2018		19,291,559				33,467
Ending balance at Sep. 30, 2018	42,215	$ 19	154,495	(111,063)	(1,111)	$ (125)
Beginning balance at Jun. 30, 2018	42,234	$ 19	153,429	(110,377)	(712)	$ (125)
Beginning balance (in shares) at Jun. 30, 2018		19,291,559				33,467
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(686)			(686)
Stock-based compensation expense	1,066		1,066
Foreign currency translation adjustment, net of taxes	(399)				(399)
Ending balance (in shares) at Sep. 30, 2018		19,291,559				33,467
Ending balance at Sep. 30, 2018	42,215	$ 19	154,495	(111,063)	(1,111)	$ (125)
Beginning balance at Dec. 31, 2018	46,583	$ 19	155,455	(107,773)	(993)	$ (125)
Beginning balance (in shares) at Dec. 31, 2018		19,294,296				33,467
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,777)			(3,777)
Stock-based compensation expense	2,181		2,181
Exercise of stock options (in shares)		9,500
Exercise of stock options	14		14
Issuance of restricted stock (in shares)		162,081
Issuance of restricted stock	0
Tax withholding on restricted stock	(304)		(304)
Foreign currency translation adjustment, net of taxes	(332)				(332)
Ending balance (in shares) at Sep. 30, 2019		19,465,877				33,467
Ending balance at Sep. 30, 2019	44,365	$ 19	157,346	(111,550)	(1,325)	$ (125)
Beginning balance at Jun. 30, 2019	45,609	$ 19	156,494	(109,912)	(867)	$ (125)
Beginning balance (in shares) at Jun. 30, 2019		19,465,877				33,467
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(1,638)			(1,638)
Stock-based compensation expense	852		852
Foreign currency translation adjustment, net of taxes	(458)				(458)
Ending balance (in shares) at Sep. 30, 2019		19,465,877				33,467
Ending balance at Sep. 30, 2019	$ 44,365	$ 19	$ 157,346	$ (111,550)	$ (1,325)	$ (125)

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of PFSweb, Inc. and its subsidiaries have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and include all normal and recurring adjustments necessary to present fairly the unaudited condensed consolidated balance sheets, statements of operations and comprehensive loss, statements of shareholders' equity, and statements of cash flows for the periods indicated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018 . We refer to PFSweb, Inc. and its subsidiaries collectively as “PFSweb,” the “Company,” “us,” “we” and “our” in these condensed consolidated financial statements. Results of our operations for interim periods may not be indicative of results for the full fiscal year. We reclassify certain prior year amounts, as applicable, to conform to the current year presentation.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies For a complete set of our significant accounting policies, refer to our Annual Report on Form 10-K for the year ended December 31, 2018 . During the three and nine -month periods ended September 30, 2019 , there were no significant changes to our significant accounting policies, other than those policies impacted by the new leasing guidance as described below in this Note 2 and Note 9. Leases We account for leases in accordance with Accounting Standard Codification (“ASC”) No. 842 ("ASC 842"), Leases . Lease assets and liabilities are recognized at the commencement date of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at the lease commencement date to discount payments to the present value. Some of these leases contain rent escalation clauses either fixed or adjusted periodically for inflation or market rates that are factored into our determination of lease payments. We also have variable lease payments that do not depend on a rate or index, primarily for items such as common area maintenance and real estate taxes, which are recorded as variable cost when incurred. The lease asset excludes incentives and initial direct costs incurred. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Our operating leases are included in operating lease right-of-use assets, current portion of operating lease liabilities and operating lease liabilities on the condensed consolidated balance sheets. Our finance leases are included in property and equipment, long-term debt and finance lease obligations and current portion of long-term debt and finance lease obligations on the condensed consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. The expense for these short-term leases and operating leases is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components and have elected to combine as a single lease component. In addition, we utilized the portfolio approach to group leases with similar characteristics and did not use hindsight to determine lease term. See Note 9 for additional information. Impact of Recently Issued Accounting Standards Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases ("ASU 2016-02"), which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. In July 2018, the FASB issued additional authoritative guidance providing companies with an optional transition method to use the effective date of ASU 2016-02 as the date of initial application of transition and not restate comparative periods. We adopted the standard on January 1, 2019 using this optional transition method. As such, prior periods have not been recast under the new standard. We elected the package of practical expedients, which allows us to carry forward historical lease classification, the practical expedient to not separate non-lease components from lease components, and the short-term lease accounting policy election as defined in ASU 2016-02. We implemented internal controls and a lease accounting software to enable the preparation of financial information on adoption. The standard had a material impact on our condensed consolidated balance sheets, but did not have an impact on the condensed consolidated statements of operations and comprehensive loss and had no impact on cash provided by or used in operating, investing or financing activities on our condensed consolidated statements of cash flows. The most significant impact was the recognition of right-of-use assets of $40.8 million and operating lease liabilities of $46.5 million for operating leases at adoption date. The difference between the right-of-use assets and operating lease liabilities was recorded as an adjustment to deferred rent (lease incentives). The adoption of ASU 2016-02 had substantially no impact on our finance leases. Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ," which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019 for all public entities, excluding smaller reporting companies, and after December 15, 2022 for smaller reporting companies. It requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. We will adopt ASU 2016-13 on January 1, 2023. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill impairment” (“ASU 2017-04”), which removes Step 2 of the goodwill impairment test. A goodwill impairment will now be determined by the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019, with early adoption permitted. We do not expect the adoption of ASU 2017-04 to have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15 " Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract; Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements " (“ASU 2018-15”), which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC Subtopic 350-40, in order to determine which costs to capitalize and recognize as an asset. ASU 2018-15 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. We will adopt on January 1, 2020 on a prospective basis. We are currently in the process of evaluating the impact of the adoption of ASU 2018-15 but do not expect the adoption to have a material impact on our condensed consolidated financial statements.

Revenue from Contracts with Cli

Revenue from Contracts with Clients and Customers	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Clients and Customers	Revenue from Contracts with Clients and Customers The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by revenue source (in thousands): Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues: Service fee revenue $ 31,176 $ 18,426 $ 49,602 $ 95,930 $ 55,441 $ 151,371 Product revenue, net 6,579 — 6,579 20,216 — 20,216 Pass-through revenue 10,760 1,050 11,810 35,049 2,014 37,063 Total revenues $ 48,515 $ 19,476 $ 67,991 $ 151,195 $ 57,455 $ 208,650 Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues: Service fee revenue $ 32,106 $ 20,784 $ 52,890 $ 100,222 $ 62,297 $ 162,519 Product revenue, net 8,469 — 8,469 27,081 — 27,081 Pass-through revenue 15,702 640 16,342 42,076 1,497 43,573 Total revenues $ 56,277 $ 21,424 $ 77,701 $ 169,379 $ 63,794 $ 233,173 The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by timing of revenue recognition (in thousands): Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues: Over time $ 41,936 $ 19,476 $ 61,412 $ 130,979 $ 56,477 $ 187,456 Point-in-time 6,579 — 6,579 20,216 978 21,194 Total revenues $ 48,515 $ 19,476 $ 67,991 $ 151,195 $ 57,455 $ 208,650 Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues: Over time $ 47,808 $ 21,424 $ 69,232 $ 142,298 $ 63,644 $ 205,942 Point-in-time 8,469 — 8,469 27,081 150 27,231 Total revenues $ 56,277 $ 21,424 $ 77,701 $ 169,379 $ 63,794 $ 233,173 The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by region (in thousands): Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues by region: North America $ 41,052 $ 17,260 $ 58,312 $ 125,950 $ 50,803 $ 176,753 Europe 7,463 2,216 9,679 25,245 6,652 31,897 Total revenues $ 48,515 $ 19,476 $ 67,991 $ 151,195 $ 57,455 $ 208,650 Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues by region: North America $ 45,563 $ 18,743 $ 64,306 $ 136,252 $ 55,945 $ 192,197 Europe 10,714 2,681 13,395 33,127 7,849 40,976 Total revenues $ 56,277 $ 21,424 $ 77,701 $ 169,379 $ 63,794 $ 233,173 Contract Assets and Contract Liabilities Changes in costs to fulfill contract assets during the period decreased $1.5 million from December 31, 2018 to September 30, 2019 , primarily due to an increase of approximately $3.4 million from new projects, offset by approximately $4.9 million of amortization and recognition of costs in the nine months ended September 30, 2019 . Costs to fulfill contract assets relate to deferred costs, which are included within other current assets and or other assets, and software development costs, which are included within property and equipment, in our condensed consolidated balance sheets. Changes in contract liabilities during the period decreased $2.8 million from December 31, 2018 to September 30, 2019 , primarily due to an increase of approximately $5.3 million from new projects, offset by approximately $8.1 million of amortization and recognition of revenue in the nine months ended September 30, 2019 . Contract losses recognized for the nine months ended September 30, 2019 were not material. Accrued contract liabilities below are included within accrued expenses in our condensed consolidated balance sheets. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, and customer advances and deposits (contract liabilities) on the condensed consolidated balance sheets. Changes in the contract asset and liability balances during the nine months ended September 30, 2019 were not materially impacted by any other factors. Contract balances consist of the following (in thousands): September 30, 2019 December 31, 2018 Contract Assets Trade accounts receivable, net $ 49,647 $ 72,180 Unbilled accounts receivable 966 235 Costs to fulfill 3,709 5,214 Total contract assets $ 54,322 $ 77,629 Contract Liabilities Accrued contract liabilities $ 1,124 $ 535 Deferred revenue 5,819 9,255 Total contract liabilities $ 6,943 $ 9,790 Remaining performance obligations represent the transaction price of firm orders for which work has not yet been performed. This amount does not include 1) contracts that are less than one year in duration, 2) contracts for which we recognize revenue based on the right to invoice for services performed, or 3) variable consideration allocated entirely to a wholly unsatisfied performance obligation. Much of our revenue qualifies for one of these exemptions. As of September 30, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations for contracts with an original expected duration of one year or more was $ 14.9 million. We expect to recognize revenue on approximately 50% of the remaining performance obligations in 2019, 42% in 2020, and the remaining recognized thereafter.

Inventory Financing

Inventory Financing	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Inventory Financing	Inventory Financing Supplies Distributors has a short-term credit facility with IBM Credit LLC and its assignees (“IBM Credit Facility”) to finance its purchase and distribution of Ricoh products in the United States, providing financing for eligible Ricoh inventory and certain receivables up to $11.0 million , as per amended agreement. The agreement has no stated maturity date and provides either party the ability to exit the facility following a 90 -day notice. Given the structure of this facility and as outstanding balances, which represent inventory purchases, are repaid within twelve months, we have classified the outstanding amounts under this facility, which were $2.2 million and $4.7 million as of September 30, 2019 and December 31, 2018 , respectively, as trade accounts payable in the condensed consolidated balance sheets. As of September 30, 2019 , Supplies Distributors had $2.2 million of available credit under this facility. The credit facility contains cross default provisions, various restrictions upon the ability of Supplies Distributors to, among other things, merge, consolidate, sell assets, incur indebtedness, make loans and payments to related parties (including entities directly or indirectly owned by PFSweb, Inc.), provide guarantees, make investments and loans, pledge assets, make changes to capital stock ownership structure and pay dividends. The credit facility also contains financial covenants, such as annualized revenue to working capital, net profit after tax to revenue, and total liabilities to tangible net worth, as defined, and is secured by certain of the assets of Supplies Distributors, as well as a collateralized guaranty of PFSweb. Additionally, PFSweb is required to maintain a minimum Subordinated Note receivable balance from Supplies Distributors of $1.0 million , as per amended agreement. Borrowings under the credit facility accrue interest, after a defined free financing period, at prime rate plus 0.5% , which resulted in a weighted average interest rate of 5.75% as of September 30, 2019 and December 31, 2018 . The facility also includes a monthly service fee. As of September 30, 2019 , the Company was in compliance with all financial covenants.

Debt and Finance Lease Obligati

Debt and Finance Lease Obligations	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Debt and Finance Lease Obligations	Debt and Finance Lease Obligations Outstanding debt and finance lease obligations consist of the following (in thousands): September 30, 2019 December 31, 2018 U.S. Credit Agreement Revolver $ 29,091 $ 35,500 Equipment loan 5,217 3,263 Debt issuance costs (323 ) (382 ) Finance Leases 2,476 3,495 Other 352 82 Total 36,813 41,958 Less current portion of long-term debt 3,002 2,610 Long-term debt, less current portion $ 33,811 $ 39,348 U.S. Credit Agreement On November 1, 2018 , we entered into Amendment No. 1 to our Credit Agreement with Regions Bank (the “Amended Facility”). The Amended Facility provided for an increase in availability of our revolving loans to $60.0 million , with the ability for a further increase of $20.0 million to $80.0 million , and the elimination of the term loan. Amounts outstanding under the term loan were reconstituted as revolving loans. The Amended Facility also extends the maturity date to November 1, 2023 and provides for additional $10.0 million in equipment financing. As of September 30, 2019 , we had $21.6 million of available credit under the revolving loan facility. As of September 30, 2019 and December 31, 2018 , the weighted average interest rate on the revolving loan facility was 4.40% and 4.57% , respectively. As of September 30, 2019 , we had $7.2 million of available credit in equipment financing. As of September 30, 2019 , we were in compliance with all debt covenants.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic net loss per common share was computed by dividing net loss by the weighted-average number of common shares outstanding for the reporting period. In periods when we recognize a net loss, we exclude the impact of outstanding common stock equivalents from the diluted loss per share calculation as their inclusion would have an antidilutive effect. As of September 30, 2019 and September 30, 2018 , we had outstanding common stock equivalents of approximately 2.5 million and 2.0 million , respectively, that have been excluded from the calculations of diluted earnings per share attributable to common stockholders because their effect would have been antidilutive.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment Information	Segment Information Our segments are comprised of strategic businesses that are defined by the service offerings they provide and consist of PFS Operations (which provides client services in relation to the customer physical experience, such as order management (OMS), order fulfillment, customer care and financial services) and LiveArea Professional Services (which provides client services in relation to the digital experience of shopping online, such as strategic commerce consulting, strategy, design and digital marketing services and technology services). Each segment is led by a separate Business Unit Executive who reports directly to our Chief Executive Officer. During the three and nine months ended September 30, 2019 , we changed the composition of the business unit direct contribution to include certain shared service costs. Prior period amounts have been reclassified to include those allocated expenses. The following table presents information concerning operations by segment (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenues: PFS Operations $ 48,515 $ 56,277 $ 151,195 $ 169,379 LiveArea Professional Services 19,476 21,424 57,455 63,794 Total revenues $ 67,991 $ 77,701 $ 208,650 $ 233,173 Business unit direct contribution: PFS Operations $ 1,702 $ 3,388 $ 6,357 $ 11,625 LiveArea Professional Services 2,594 3,470 6,768 7,467 Total business unit direct contribution 4,296 6,858 13,125 19,092 Unallocated corporate expenses (5,547 ) (6,181 ) (15,046 ) (17,212 ) Income (loss) from operations $ (1,251 ) $ 677 $ (1,921 ) $ 1,880

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	. Commitments and Contingencies We received municipal tax abatements in certain locations. In prior years, we received notice from a municipality that we did not satisfy certain criteria necessary to maintain the abatements and that the municipal authority planned to make an adjustment to our tax abatement. We disputed the adjustment and such dispute has been settled with the municipality. However, the amount of additional property taxes to be assessed against us and the timing of the related payments has not been finalized. As of September 30, 2019 , we believe we have adequately accrued for the expected assessment.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	Leases The Company adopted ASU 2016-02, as of January 1, 2019, using the modified retrospective approach. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below. All of our office and warehouse facilities are leased under operating leases. We also lease vehicles primarily as operating leases. Most of our equipment leases are leased under finance leases. Lease costs are included within cost of service fee revenue, selling, general and administrative expenses and interest expense, net in our condensed consolidated statements of operations and comprehensive loss. Total lease costs consist of the following (in thousands): Three Months Ended Nine Months Ended Lease costs: Finance lease costs: Amortization of right-of-use assets $ 341 $ 1,131 Interest on lease liabilities 40 129 Operating lease costs 2,380 6,986 Variable lease costs 755 2,102 Short-term lease costs 353 1,273 Total lease costs $ 3,869 $ 11,621 We had $2.2 million of finance lease assets that are reported in property and equipment, net as of September 30, 2019 . As of September 30, 2019 , our weighted-average remaining lease term relating to our operating leases is 5.8 years , with a weighted-average discount of 5.06% . As of September 30, 2019 , our weighted-average remaining lease term relating to our finance leases is 2.3 years , with a weighted-average discount of 5.66% . Our leases have remaining lease terms of up to 9.3 years , some of which include options to extend the leases for up to 10 years , and some of which include options to terminate the leases within 1 year . Maturities of lease liabilities are as follows (in thousands): September 30, 2019 Operating Leases Finance Leases 2019 $ 2,608 $ 358 2020 9,897 1,242 2021 9,032 829 2022 8,181 139 2023 6,549 48 Thereafter 12,374 20 Total lease payments 48,641 2,636 Less interest (6,603 ) (160 ) Total lease obligations $ 42,038 $ 2,476 Supplemental consolidated cash flow information related to leases is as follows (in thousands): Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,953 Operating cash flows from finance leases $ 129 Financing cash flows from finance leases $ 1,330 Right-of-use assets obtained in exchange for new operating lease liabilities $ 159 Increase in right-of-use assets resulting from other operating lease modifications $ 1,660 Right-of-use assets obtained in exchange for new finance lease liabilities $ 411 Total rental expense under operating leases approximated $11.1 million for the year ended December 31, 2018. Future minimum obligations under leases in effect as of December 31, 2018 having a non-cancelable term in excess of one year as determined prior to the adoption of ASU 2016-02 are as follows (in thousands): December 31, 2018 Operating Leases Finance Leases 2019 $ 9,659 $ 1,811 2020 10,028 1,169 2021 9,222 725 2022 8,407 55 2023 6,828 — Thereafter 12,840 — Future minimum lease obligations $ 56,980 3,760 Less interest (265 ) Present value of net minimum lease obligations $ 3,495
Leases	Leases The Company adopted ASU 2016-02, as of January 1, 2019, using the modified retrospective approach. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below. All of our office and warehouse facilities are leased under operating leases. We also lease vehicles primarily as operating leases. Most of our equipment leases are leased under finance leases. Lease costs are included within cost of service fee revenue, selling, general and administrative expenses and interest expense, net in our condensed consolidated statements of operations and comprehensive loss. Total lease costs consist of the following (in thousands): Three Months Ended Nine Months Ended Lease costs: Finance lease costs: Amortization of right-of-use assets $ 341 $ 1,131 Interest on lease liabilities 40 129 Operating lease costs 2,380 6,986 Variable lease costs 755 2,102 Short-term lease costs 353 1,273 Total lease costs $ 3,869 $ 11,621 We had $2.2 million of finance lease assets that are reported in property and equipment, net as of September 30, 2019 . As of September 30, 2019 , our weighted-average remaining lease term relating to our operating leases is 5.8 years , with a weighted-average discount of 5.06% . As of September 30, 2019 , our weighted-average remaining lease term relating to our finance leases is 2.3 years , with a weighted-average discount of 5.66% . Our leases have remaining lease terms of up to 9.3 years , some of which include options to extend the leases for up to 10 years , and some of which include options to terminate the leases within 1 year . Maturities of lease liabilities are as follows (in thousands): September 30, 2019 Operating Leases Finance Leases 2019 $ 2,608 $ 358 2020 9,897 1,242 2021 9,032 829 2022 8,181 139 2023 6,549 48 Thereafter 12,374 20 Total lease payments 48,641 2,636 Less interest (6,603 ) (160 ) Total lease obligations $ 42,038 $ 2,476 Supplemental consolidated cash flow information related to leases is as follows (in thousands): Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,953 Operating cash flows from finance leases $ 129 Financing cash flows from finance leases $ 1,330 Right-of-use assets obtained in exchange for new operating lease liabilities $ 159 Increase in right-of-use assets resulting from other operating lease modifications $ 1,660 Right-of-use assets obtained in exchange for new finance lease liabilities $ 411 Total rental expense under operating leases approximated $11.1 million for the year ended December 31, 2018. Future minimum obligations under leases in effect as of December 31, 2018 having a non-cancelable term in excess of one year as determined prior to the adoption of ASU 2016-02 are as follows (in thousands): December 31, 2018 Operating Leases Finance Leases 2019 $ 9,659 $ 1,811 2020 10,028 1,169 2021 9,222 725 2022 8,407 55 2023 6,828 — Thereafter 12,840 — Future minimum lease obligations $ 56,980 3,760 Less interest (265 ) Present value of net minimum lease obligations $ 3,495

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements of PFSweb, Inc. and its subsidiaries have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and include all normal and recurring adjustments necessary to present fairly the unaudited condensed consolidated balance sheets, statements of operations and comprehensive loss, statements of shareholders' equity, and statements of cash flows for the periods indicated. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. This report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018 . We refer to PFSweb, Inc. and its subsidiaries collectively as “PFSweb,” the “Company,” “us,” “we” and “our” in these condensed consolidated financial statements. Results of our operations for interim periods may not be indicative of results for the full fiscal year. We reclassify certain prior year amounts, as applicable, to conform to the current year presentation.
Leases	Leases We account for leases in accordance with Accounting Standard Codification (“ASC”) No. 842 ("ASC 842"), Leases . Lease assets and liabilities are recognized at the commencement date of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at the lease commencement date to discount payments to the present value. Some of these leases contain rent escalation clauses either fixed or adjusted periodically for inflation or market rates that are factored into our determination of lease payments. We also have variable lease payments that do not depend on a rate or index, primarily for items such as common area maintenance and real estate taxes, which are recorded as variable cost when incurred. The lease asset excludes incentives and initial direct costs incurred. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Our operating leases are included in operating lease right-of-use assets, current portion of operating lease liabilities and operating lease liabilities on the condensed consolidated balance sheets. Our finance leases are included in property and equipment, long-term debt and finance lease obligations and current portion of long-term debt and finance lease obligations on the condensed consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. The expense for these short-term leases and operating leases is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components and have elected to combine as a single lease component. In addition, we utilized the portfolio approach to group leases with similar characteristics and did not use hindsight to determine lease term. See Note 9 for additional information.
Impact of Recently Issued Accounting Standards	Impact of Recently Issued Accounting Standards Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases ("ASU 2016-02"), which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. In July 2018, the FASB issued additional authoritative guidance providing companies with an optional transition method to use the effective date of ASU 2016-02 as the date of initial application of transition and not restate comparative periods. We adopted the standard on January 1, 2019 using this optional transition method. As such, prior periods have not been recast under the new standard. We elected the package of practical expedients, which allows us to carry forward historical lease classification, the practical expedient to not separate non-lease components from lease components, and the short-term lease accounting policy election as defined in ASU 2016-02. We implemented internal controls and a lease accounting software to enable the preparation of financial information on adoption. The standard had a material impact on our condensed consolidated balance sheets, but did not have an impact on the condensed consolidated statements of operations and comprehensive loss and had no impact on cash provided by or used in operating, investing or financing activities on our condensed consolidated statements of cash flows. The most significant impact was the recognition of right-of-use assets of $40.8 million and operating lease liabilities of $46.5 million for operating leases at adoption date. The difference between the right-of-use assets and operating lease liabilities was recorded as an adjustment to deferred rent (lease incentives). The adoption of ASU 2016-02 had substantially no impact on our finance leases. Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ," which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019 for all public entities, excluding smaller reporting companies, and after December 15, 2022 for smaller reporting companies. It requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. We will adopt ASU 2016-13 on January 1, 2023. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill impairment” (“ASU 2017-04”), which removes Step 2 of the goodwill impairment test. A goodwill impairment will now be determined by the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019, with early adoption permitted. We do not expect the adoption of ASU 2017-04 to have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15 " Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract; Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements " (“ASU 2018-15”), which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC Subtopic 350-40, in order to determine which costs to capitalize and recognize as an asset. ASU 2018-15 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019, and can be applied either prospectively to implementation costs incurred after the date of adoption or retrospectively to all arrangements. We will adopt on January 1, 2020 on a prospective basis. We are currently in the process of evaluating the impact of the adoption of ASU 2018-15 but do not expect the adoption to have a material impact on our condensed consolidated financial statements.

Revenue from Contracts with C_2

Revenue from Contracts with Clients and Customers (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Summary of Revenues Disaggregated by Revenue Source and Region	The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by revenue source (in thousands): Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues: Service fee revenue $ 31,176 $ 18,426 $ 49,602 $ 95,930 $ 55,441 $ 151,371 Product revenue, net 6,579 — 6,579 20,216 — 20,216 Pass-through revenue 10,760 1,050 11,810 35,049 2,014 37,063 Total revenues $ 48,515 $ 19,476 $ 67,991 $ 151,195 $ 57,455 $ 208,650 Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues: Service fee revenue $ 32,106 $ 20,784 $ 52,890 $ 100,222 $ 62,297 $ 162,519 Product revenue, net 8,469 — 8,469 27,081 — 27,081 Pass-through revenue 15,702 640 16,342 42,076 1,497 43,573 Total revenues $ 56,277 $ 21,424 $ 77,701 $ 169,379 $ 63,794 $ 233,173 The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by timing of revenue recognition (in thousands): Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues: Over time $ 41,936 $ 19,476 $ 61,412 $ 130,979 $ 56,477 $ 187,456 Point-in-time 6,579 — 6,579 20,216 978 21,194 Total revenues $ 48,515 $ 19,476 $ 67,991 $ 151,195 $ 57,455 $ 208,650 Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues: Over time $ 47,808 $ 21,424 $ 69,232 $ 142,298 $ 63,644 $ 205,942 Point-in-time 8,469 — 8,469 27,081 150 27,231 Total revenues $ 56,277 $ 21,424 $ 77,701 $ 169,379 $ 63,794 $ 233,173 The following tables present our revenues, excluding sales and usage-based taxes, disaggregated by region (in thousands): Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues by region: North America $ 41,052 $ 17,260 $ 58,312 $ 125,950 $ 50,803 $ 176,753 Europe 7,463 2,216 9,679 25,245 6,652 31,897 Total revenues $ 48,515 $ 19,476 $ 67,991 $ 151,195 $ 57,455 $ 208,650 Three Months Ended Nine Months Ended PFS Operations LiveArea Professional Services Total PFS Operations LiveArea Professional Services Total Revenues by region: North America $ 45,563 $ 18,743 $ 64,306 $ 136,252 $ 55,945 $ 192,197 Europe 10,714 2,681 13,395 33,127 7,849 40,976 Total revenues $ 56,277 $ 21,424 $ 77,701 $ 169,379 $ 63,794 $ 233,173
Summary of Contract Balances	Contract balances consist of the following (in thousands): September 30, 2019 December 31, 2018 Contract Assets Trade accounts receivable, net $ 49,647 $ 72,180 Unbilled accounts receivable 966 235 Costs to fulfill 3,709 5,214 Total contract assets $ 54,322 $ 77,629 Contract Liabilities Accrued contract liabilities $ 1,124 $ 535 Deferred revenue 5,819 9,255 Total contract liabilities $ 6,943 $ 9,790

Debt and Finance Lease Obliga_2

Debt and Finance Lease Obligations (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Summary of Debt and Finance Lease Obligations	Outstanding debt and finance lease obligations consist of the following (in thousands): September 30, 2019 December 31, 2018 U.S. Credit Agreement Revolver $ 29,091 $ 35,500 Equipment loan 5,217 3,263 Debt issuance costs (323 ) (382 ) Finance Leases 2,476 3,495 Other 352 82 Total 36,813 41,958 Less current portion of long-term debt 3,002 2,610 Long-term debt, less current portion $ 33,811 $ 39,348

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Summary of Segment Information	The following table presents information concerning operations by segment (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenues: PFS Operations $ 48,515 $ 56,277 $ 151,195 $ 169,379 LiveArea Professional Services 19,476 21,424 57,455 63,794 Total revenues $ 67,991 $ 77,701 $ 208,650 $ 233,173 Business unit direct contribution: PFS Operations $ 1,702 $ 3,388 $ 6,357 $ 11,625 LiveArea Professional Services 2,594 3,470 6,768 7,467 Total business unit direct contribution 4,296 6,858 13,125 19,092 Unallocated corporate expenses (5,547 ) (6,181 ) (15,046 ) (17,212 ) Income (loss) from operations $ (1,251 ) $ 677 $ (1,921 ) $ 1,880

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Lease Costs and Supplemental Cash Flow Information	Total lease costs consist of the following (in thousands): Three Months Ended Nine Months Ended Lease costs: Finance lease costs: Amortization of right-of-use assets $ 341 $ 1,131 Interest on lease liabilities 40 129 Operating lease costs 2,380 6,986 Variable lease costs 755 2,102 Short-term lease costs 353 1,273 Total lease costs $ 3,869 $ 11,621 Supplemental consolidated cash flow information related to leases is as follows (in thousands): Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,953 Operating cash flows from finance leases $ 129 Financing cash flows from finance leases $ 1,330 Right-of-use assets obtained in exchange for new operating lease liabilities $ 159 Increase in right-of-use assets resulting from other operating lease modifications $ 1,660 Right-of-use assets obtained in exchange for new finance lease liabilities $ 411
Finance Lease Maturity	Maturities of lease liabilities are as follows (in thousands): September 30, 2019 Operating Leases Finance Leases 2019 $ 2,608 $ 358 2020 9,897 1,242 2021 9,032 829 2022 8,181 139 2023 6,549 48 Thereafter 12,374 20 Total lease payments 48,641 2,636 Less interest (6,603 ) (160 ) Total lease obligations $ 42,038 $ 2,476
Operating Lease Maturity	Maturities of lease liabilities are as follows (in thousands): September 30, 2019 Operating Leases Finance Leases 2019 $ 2,608 $ 358 2020 9,897 1,242 2021 9,032 829 2022 8,181 139 2023 6,549 48 Thereafter 12,374 20 Total lease payments 48,641 2,636 Less interest (6,603 ) (160 ) Total lease obligations $ 42,038 $ 2,476
Finance Lease Maturity	Future minimum obligations under leases in effect as of December 31, 2018 having a non-cancelable term in excess of one year as determined prior to the adoption of ASU 2016-02 are as follows (in thousands): December 31, 2018 Operating Leases Finance Leases 2019 $ 9,659 $ 1,811 2020 10,028 1,169 2021 9,222 725 2022 8,407 55 2023 6,828 — Thereafter 12,840 — Future minimum lease obligations $ 56,980 3,760 Less interest (265 ) Present value of net minimum lease obligations $ 3,495
Operating Lease Maturity	Future minimum obligations under leases in effect as of December 31, 2018 having a non-cancelable term in excess of one year as determined prior to the adoption of ASU 2016-02 are as follows (in thousands): December 31, 2018 Operating Leases Finance Leases 2019 $ 9,659 $ 1,811 2020 10,028 1,169 2021 9,222 725 2022 8,407 55 2023 6,828 — Thereafter 12,840 — Future minimum lease obligations $ 56,980 3,760 Less interest (265 ) Present value of net minimum lease obligations $ 3,495

Significant Accounting Polici_3

Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, right of use asset	$ 36,340
Total lease obligations	$ 42,038
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, right of use asset		$ 40,800
Total lease obligations		$ 46,500

Revenue from Contracts with C_3

Revenue from Contracts with Clients and Customers - Summary of Revenues Disaggregated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Disaggregated revenue	$ 67,991	$ 77,701	$ 208,650	$ 233,173
North America
Disaggregation of Revenue [Line Items]
Disaggregated revenue	58,312	64,306	176,753	192,197
Europe
Disaggregation of Revenue [Line Items]
Disaggregated revenue	9,679	13,395	31,897	40,976
PFS Operations
Disaggregation of Revenue [Line Items]
Disaggregated revenue	48,515	56,277	151,195	169,379
PFS Operations | North America
Disaggregation of Revenue [Line Items]
Disaggregated revenue	41,052	45,563	125,950	136,252
PFS Operations | Europe
Disaggregation of Revenue [Line Items]
Disaggregated revenue	7,463	10,714	25,245	33,127
LiveArea Professional Services
Disaggregation of Revenue [Line Items]
Disaggregated revenue	19,476	21,424	57,455	63,794
LiveArea Professional Services | North America
Disaggregation of Revenue [Line Items]
Disaggregated revenue	17,260	18,743	50,803	55,945
LiveArea Professional Services | Europe
Disaggregation of Revenue [Line Items]
Disaggregated revenue	2,216	2,681	6,652	7,849
Service fee revenue
Disaggregation of Revenue [Line Items]
Disaggregated revenue	49,602	52,890	151,371	162,519
Service fee revenue | PFS Operations
Disaggregation of Revenue [Line Items]
Disaggregated revenue	31,176	32,106	95,930	100,222
Service fee revenue | LiveArea Professional Services
Disaggregation of Revenue [Line Items]
Disaggregated revenue	18,426	20,784	55,441	62,297
Product revenue, net
Disaggregation of Revenue [Line Items]
Disaggregated revenue	6,579	8,469	20,216	27,081
Product revenue, net | PFS Operations
Disaggregation of Revenue [Line Items]
Disaggregated revenue	6,579	8,469	20,216	27,081
Product revenue, net | LiveArea Professional Services
Disaggregation of Revenue [Line Items]
Disaggregated revenue	0	0	0	0
Pass-through revenue
Disaggregation of Revenue [Line Items]
Disaggregated revenue	11,810	16,342	37,063	43,573
Pass-through revenue | PFS Operations
Disaggregation of Revenue [Line Items]
Disaggregated revenue	10,760	15,702	35,049	42,076
Pass-through revenue | LiveArea Professional Services
Disaggregation of Revenue [Line Items]
Disaggregated revenue	1,050	640	2,014	1,497
Over time
Disaggregation of Revenue [Line Items]
Disaggregated revenue	61,412	69,232	187,456	205,942
Over time | PFS Operations
Disaggregation of Revenue [Line Items]
Disaggregated revenue	41,936	47,808	130,979	142,298
Over time | LiveArea Professional Services
Disaggregation of Revenue [Line Items]
Disaggregated revenue	19,476	21,424	56,477	63,644
Point-in-time
Disaggregation of Revenue [Line Items]
Disaggregated revenue	6,579	8,469	21,194	27,231
Point-in-time | PFS Operations
Disaggregation of Revenue [Line Items]
Disaggregated revenue	6,579	8,469	20,216	27,081
Point-in-time | LiveArea Professional Services
Disaggregation of Revenue [Line Items]
Disaggregated revenue	$ 0	$ 0	$ 978	$ 150

Revenue from Contracts with C_4

Revenue from Contracts with Clients and Customers - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Changes in costs to fulfill contract assets	$ (1.5)
Increase in costs to fulfill contracts with customers from new projects	3.4
Amortization of costs to fulfill contract assets	4.9
Change in contract liabilities	(2.8)
Increase in contract liabilities for new projects	5.3
Change in contract liabilities from amortization and recognition and recognition of revenue	8.1
Performance obligation	$ 14.9

Revenue from Contracts with C_5

Revenue from Contracts with Clients and Customers - Summary of Contract Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Contract Assets
Trade accounts receivable, net	$ 49,647	$ 72,180
Unbilled accounts receivable	966	235
Costs to fulfill	3,709	5,214
Total contract assets	54,322	77,629
Contract Liabilities
Accrued contract liabilities	1,124	535
Deferred revenue	5,819	9,255
Total contract liabilities	$ 6,943	$ 9,790

Revenue from Contracts with C_6

Revenue from Contracts with Clients and Customers - Additional Information, Performance Obligation (Details)	Sep. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	50.00%
Performance obligation, expected timing of satisfaction	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	42.00%
Performance obligation, expected timing of satisfaction	12 months

Inventory Financing - Additiona

Inventory Financing - Additional Information (Details) - Line of Credit - Short Term Credit Facility - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Line of Credit Facility [Line Items]
Maximum credit under credit agreement	$ 11
Termination notice period	90 days
Outstanding borrowings	$ 2.2	$ 4.7
Available credit under credit agreement	2.2
Subordinated note outstanding, minimum limit	$ 1
Weighted average interest rate	5.75%	5.75%
Prime Rate
Line of Credit Facility [Line Items]
Variable rate basis	0.50%

Debt and Finance Lease Obliga_3

Debt and Finance Lease Obligations - Summary of Outstanding Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Finance Leases	$ 2,476
Finance Leases		$ 3,495
Other	352	82
Debt and capital lease obligation	36,813	41,958
Less current portion of long-term debt	3,002	2,610
Long-term debt, less current portion	33,811	39,348
U.S. Credit Agreement
Debt Instrument [Line Items]
Debt issuance costs	(323)	(382)
U.S. Credit Agreement | Revolver
Debt Instrument [Line Items]
U.S. Credit Agreement	29,091	35,500
U.S. Credit Agreement | Equipment loan
Debt Instrument [Line Items]
U.S. Credit Agreement	$ 5,217	$ 3,263

Debt and Finance Lease Obliga_4

Debt and Finance Lease Obligations - U.S. Credit Agreement - Additional Information (Details) - U.S. Credit Agreement - Revolving Loan Facility - USD ($)	Sep. 30, 2019	Dec. 31, 2018	Nov. 01, 2018
Line of Credit Facility [Line Items]
Availability under credit agreement			$ 60,000,000
Available increase under credit agreement			20,000,000
Availability under credit agreement after available increase under credit agreement			80,000,000
Availability under credit agreement for equipment purchases			$ 10,000,000
Available credit under credit agreement	$ 21,600,000
Weighted average interest rate on outstanding borrowings	4.40%	4.57%
Available credit under credit agreement for equipment purchases	$ 7,200,000

Earnings (Loss) Per Share - Add

Earnings (Loss) Per Share - Additional Information (Details) - shares shares in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Outstanding common stock excluded from calculations of diluted earnings per share (in shares)	2.5	2

Segment Information - Summary o

Segment Information - Summary of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Summary of product revenue by segments
Total revenues	$ 67,991	$ 77,701	$ 208,650	$ 233,173
Business unit direct contribution by segments
Income (loss) from operations	(1,251)	677	(1,921)	1,880
PFS Operations
Summary of product revenue by segments
Total revenues	48,515	56,277	151,195	169,379
LiveArea Professional Services
Summary of product revenue by segments
Total revenues	19,476	21,424	57,455	63,794
Operating Segments
Summary of product revenue by segments
Total revenues	67,991	77,701	208,650	233,173
Business unit direct contribution by segments
Business unit direct contribution	4,296	6,858	13,125	19,092
Operating Segments | PFS Operations
Summary of product revenue by segments
Total revenues	48,515	56,277	151,195	169,379
Business unit direct contribution by segments
Business unit direct contribution	1,702	3,388	6,357	11,625
Operating Segments | LiveArea Professional Services
Summary of product revenue by segments
Total revenues	19,476	21,424	57,455	63,794
Business unit direct contribution by segments
Business unit direct contribution	2,594	3,470	6,768	7,467
Unallocated Corporate
Business unit direct contribution by segments
Unallocated corporate expenses	$ (5,547)	$ (6,181)	$ (15,046)	$ (17,212)

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Finance lease costs:
Amortization of right-of-use assets	$ 341	$ 1,131
Interest on lease liabilities	40	129
Operating lease costs	2,380	6,986
Variable lease costs	755	2,102
Short-term lease costs	353	1,273
Total lease costs	$ 3,869	$ 11,621

Leases - Additional Informatio

Leases - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)
Leases [Abstract]
Finance lease asset	$ 2.2
Operating lease, weighted-average remaining lease term	5 years 9 months 18 days
Operating lease, weighted-average discount rate	5.06%
Finance lease, weighted-average remaining lease term	2 years 3 months 22 days
Finance lease, weighted-average discount rate	5.66%
Remaining lease term	9 years 3 months 18 days
Extension term	10 years
Termination period	1 year

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Operating Leases
2019	$ 2,608
2020	9,897
2021	9,032
2022	8,181
2023	6,549
Thereafter	12,374
Total lease payments	48,641
Less interest	(6,603)
Total lease obligations	42,038
Finance Leases
2019	358
2020	1,242
2021	829
2022	139
2023	48
Thereafter	20
Total lease payments	2,636
Less interest	(160)
Total lease obligations	$ 2,476

Leases - Supplemental Consolid

Leases - Supplemental Consolidated Cash Flows (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 6,953
Operating cash flows from finance leases	129
Financing cash flows from finance leases	1,330
Right-of-use assets obtained in exchange for new operating lease liabilities	159
Increase in right-of-use assets resulting from other operating lease modifications	1,660
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 411

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Leases [Abstract]
Rental expense under operating leases	$ 11,100
Operating Leases
2019	9,659
2020	10,028
2021	9,222
2022	8,407
2023	6,828
Thereafter	12,840
Future minimum lease obligations	56,984
Finance Leases
2019	1,811
2020	1,169
2021	725
2022	55
2023	0
Thereafter	0
Future minimum lease obligations	3,760
Less interest	(265)
Present value of net minimum lease obligations	$ 3,495

Uncategorized Items - pfsw-2019

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 280,000
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations	us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations	14,472,000
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations	us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations	13,718,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	280,000
AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	0
Treasury Stock [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	0
Additional Paid-in Capital [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	0
Common Stock [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 0