Synchronoss (SNCR) 10-Q 31 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 27, 2015
Document and Entity Information
Entity Registrant Name	SYNCHRONOSS TECHNOLOGIES INC
Entity Central Index Key	1,131,554
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		43,862,687
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 176,053	$ 235,967
Marketable securities	65,939	51,097
Accounts receivable, net of allowance for doubtful accounts of $117 and $88 at June 30, 2015 and December 31, 2014, respectively	136,391	118,371
Prepaid expenses and other assets	43,275	35,023
Deferred tax assets	5,151	1,475
Total current assets	426,809	441,933
Marketable securities	7,324	3,313
Property and equipment, net	164,142	151,171
Goodwill	175,611	147,135
Intangible assets, net	105,529	99,489
Deferred tax assets	4,355	1,232
Other assets	18,009	18,549
Total assets	901,779	862,822
Current liabilities:
Accounts payable	19,476	25,059
Accrued expenses	37,933	42,679
Deferred revenues	14,424	11,897
Contingent consideration obligation		8,000
Total current liabilities	71,833	87,635
Lease financing obligation - long-term	13,836	9,204
Convertible debt	230,000	230,000
Deferred Tax Liabilities, Net, Noncurrent	10,879	3,698
Other liabilities	$ 3,309	$ 3,178
Stockholders' equity:
Preferred stock, $0.0001 par value; 10,000 shares authorized, 0 shares issued and outstanding at June 30, 2015 and December 31, 2014
Common stock, $0.0001 par value; 100,000 shares authorized, 47,514 and 46,444 shares issued; 43,810 and 42,711 outstanding at June 30, 2015 and December 31, 2014, respectively	$ 4	$ 4
Treasury stock, at cost (3,704 and 3,733 shares at June 30, 2015 and December 31, 2014, respectively)	(65,969)	(66,336)
Additional paid-in capital	484,161	454,740
Accumulated other comprehensive loss	(32,702)	(20,014)
Retained earnings	186,428	160,713
Total stockholders' equity	571,922	529,107
Total liabilities and stockholders' equity	$ 901,779	$ 862,822

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 117	$ 88
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	47,514,000	46,444,000
Common stock, shares outstanding	43,810,000	42,711,000
Treasury stock, shares	3,704,000	3,733,000

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Net revenues	$ 137,820	$ 103,451	$ 270,746	$ 201,928
Costs and expenses:
Cost of services	54,920	41,290	108,575	81,269
Research and development	22,462	17,305	44,486	32,845
Selling, general and administrative	18,717	17,149	39,600	34,274
Net change in contingent consideration obligation		115		1,326
Restructuring charges	1,451		4,691
Depreciation and amortization	16,632	13,758	31,467	26,024
Total costs and expenses	114,182	89,617	228,819	175,738
Income from operations	23,638	13,834	41,927	26,190
Interest income	471	154	937	286
Interest expense	(1,418)	(371)	(2,760)	(874)
Other income	415	256	429	1,052
Income before income tax expense	23,106	13,873	40,533	26,654
Income tax expense	(7,952)	(5,509)	(14,818)	(10,705)
Net income	$ 15,154	$ 8,364	$ 25,715	$ 15,949
Net income per common share:
Basic (in dollars per share)	$ 0.36	$ 0.21	$ 0.61	$ 0.40
Diluted (in dollars per share)	$ 0.33	$ 0.20	$ 0.56	$ 0.39
Weighted-average common shares outstanding:
Basic (in shares)	41,870	40,139	41,898	39,961
Diluted (in shares)	47,271	40,978	47,371	40,878
Comprehensive income	$ 21,934	$ 7,867	$ 13,027	$ 16,451

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities:
Net income	$ 25,715	$ 15,949
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	31,467	26,024
Amortization of debt issuance costs	750
Amortization of bond premium	756	166
Deferred income taxes	2,065	2,128
Non-cash interest on leased facility	464	460
Stock-based compensation	13,087	12,682
Changes in operating assets and liabilities:
Accounts receivable, net of allowance for doubtful accounts	(19,758)	(21,806)
Prepaid expenses and other current assets	(4,749)	(3,913)
Other assets	(282)	933
Accounts payable	2,869	(2,220)
Accrued expenses	(7,897)	(10,095)
Contingent consideration obligation	(1,532)	2,127
Excess tax benefit from the exercise of stock options	(3,898)	(1,224)
Other liabilities	(172)	1,152
Deferred revenues	2,882	(3,160)
Net cash provided by operating activities	41,767	19,203
Investing activities:
Purchases of fixed assets	(34,947)	(15,672)
Purchases of marketable securities available-for-sale	(72,015)	(4,070)
Sales and maturities of marketable securities available-for-sale	52,375	880
Business acquired, net of cash	(59,481)	(6,322)
Net cash used in investing activities	(114,068)	(25,184)
Financing activities:
Proceeds from the exercise of stock options	11,828	7,870
Payments on contingent consideration obligation	(4,468)
Excess tax benefit from the exercise of stock options	3,898	1,224
Proceeds from the sale of treasury stock in connection with an employee stock purchase plan	975	740
Repayments of capital obligations	(564)	(618)
Net cash provided by financing activities	11,669	9,216
Effect of exchange rate changes on cash	718	193
Net (decrease) increase in cash and cash equivalents	(59,914)	3,428
Cash and cash equivalents at beginning of period	235,967	63,512
Cash and cash equivalents at end of period	176,053	66,940
Supplemental disclosures of cash flow information:
Cash paid for income taxes	$ 13,657	$ 10,275

Unaudited Statements

Unaudited Statements	6 Months Ended
	Jun. 30, 2015
Unaudited Statements
Unaudited Statements	The consolidated financial statement s as of June 30, 2015 and for the three and six months ended June 30, 2015 and 2014 are unaudited, but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and should be read in conjunction with the consolidated financial statements and notes in the Annual Report of Synchronoss Technologies, Inc. incorporated by reference in the Company's annual report on Form 10-K for the year ended December 31, 2014 . The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. The Company has no unconsolidated subsidiaries or investments accounted for under the equity method. The results reported in these consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Certain amounts from the prior year’s financial statements have been reclassified to conform to the current year’s presentation.

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2015
Description of Business
Description of Business	1. Description of Business Synchronoss Technologies, Inc. (the “Company” or “Synchronoss”) is a mobile innovation company that provides software-based cloud and activation solutions for connected devices to enterprise customers on a global scale. The Company’s software creates innovative consumer and enterprise solutions that drive billions of transactions on a wide range of connected devices across the world’s leading networks. The Company’s solutions include: intelligent connectivity management and content synchronization, backup and sharing service procurement, provisioning, activation, and support that enable communications service providers (CSPs), cable operators/multi-services operators (MSOs), original equipment manufacturers (OEMs) with embedded connectivity (e.g. smartphones, laptops, tablets and mobile Internet devices, such as automobiles, wearables for personal health and wellness, and connected homes), multi-channel retailers and other customers to accelerate and monetize value-add services for connected devices. This includes automating subscriber activation, order management, upgrades, service provisioning and connectivity and content management from any sales channel to any communication service (wireless or wireline), across any connected device type and managing the content transfer, synchronization and share. The Company’s Synchronoss Personal Cloud™ platform is specifically designed to power the activation of the devices and technologies that seamlessly connect today’s consumer and leverage the Company’s cloud assets to manage these devices and content associated with them. The Synchronoss WorkSpace™ platform focuses on providing a secure, integrated file sharing and collaboration solution for small and medium businesses. The Company’s consumer and small business platforms and solutions enable Synchronoss to drive a natural extension of the Company’s mobile activations and cloud services with leading wireless networks around the world to link other non-traditional devices (i.e., automobiles, wearables for personal health and wellness, and connected homes). The Company’s Activation Services, Synchronoss Personal Cloud™ and Synchronoss WorkSpace™ platforms provide end-to-end seamless integration between customer-facing channels/applications, communication services or devices and “back-office” infrastructure-related systems and processes. The Company’s customers rely on the Company’s solutions and technology to automate the process of activation and content and settings management for their subscriber’s devices while delivering additional communication services. The Company’s Integrated Life™ platform brings together the capabilities of device/service activation with content and settings management to provide a seamless experience of activating and managing both traditional and non-traditional devices. The Company’s platforms also support automated customer care processes through use of accurate and effective speech processing technology and enable the Company’s customers to offer their subscribers the ability to store in and retrieve from the Cloud their personal and work content and data which resides on their connected mobile devices, such as personal computers, smartphones and tablets. The Company’s platforms are designed to be carrier-grade, highly available, flexible and scalable to enable multiple converged communication services to be managed across multiple distribution channels including e-commerce, m-commerce, telesales, customer stores, indirect and other retail outlets allowing the Company to meet the rapidly changing and converging services and connected devices offered by the Company’s customers. Synchronoss enables its customers to acquire, retain and service subscribers quickly, reliably and cost-effectively by enabling backup, restore, synchronization and sharing of subscriber content. Through the use of the Company’s platforms, the Company’s customers can simplify the processes associated with managing the customer experience for procuring, activating, connecting, backing-up, synchronizing and social media and enterprise-wide sharing/collaboration with connected devices and contents from these devices and associated services. The extensibility, scalability, reliability and relevance of the Company’s platforms enable new revenue streams and retention opportunities for the Company’s customers through new subscriber acquisitions, sale of new devices, accessories and new value-added service offerings in the Cloud, while optimizing their cost of operations and enhancing customer experience. The Company currently operates in and markets its solutions and services directly through the Company’s sales organizations in North America, Europe and Asia-Pacific. The Company’s industry-leading customers include Tier 1 mobile service providers such as AT&T Inc., Verizon Wireless, Vodafone, Orange, Sprint, Telstra and U.S. Cellular, Tier 1 cable operators/MSOs and wireline operators like AT&T Inc., Comcast, Cablevision, Charter, CenturyLink, Mediacom and Level 3 Communications and large OEMs such as Apple and Ericsson. These customers utilize the Company’s platforms, technology and services to service both consumer and business customers.

Basis of Presentation and Conso

Basis of Presentation and Consolidation	6 Months Ended
	Jun. 30, 2015
Basis of Presentation and Consolidation
Basis of Presentation and Consolidation	2 . Basis of Presentation and Consolidation For further information about the Company’s basis of presentation and consolidation or its significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2014 . Impact of Recently Issued Accounting Standards In May 2015, the FASB issued ASU 2015-08, “'Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115” (“ASU 2015-08”). The amendments in ASU 2015-08 amend various SEC paragraphs included in the FASB’s Accounting Standards Codification to reflect the issuance of Staff Accounting Bulletin No. 115 (“SAB 115”). SAB 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The Company has adopted the amendments in ASU 2015-08, effective May 8, 2015, as the amendments in the update are effective upon issuance. The adoption of this ASU did not significantly impact the consolidated financial statements. In April 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” This amendment removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share. The updated guidance is effective for public entities for interim and annual periods beginning after December 15, 2016 and early adoption is not permitted. The Company does not expect the adoption of this ASU to significantly impact the consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, Intangible – Goodwill and Other Internal Use Software (Topic 350-40), as part of its initiative to reduce complexity in accounting standards. This guidance clarified how customers in cloud computing arrangements should determine whether the arrangement includes a software license. The guidance also eliminates the existing requirement for customers to account for software licenses that they acquire by analogizing to the guidance on leases. Instead, entities will account for these arrangements as licenses of intangible assets. For public business entities, the FASB decided that the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for all entities. The Company does not expect the adoption of this ASU to significantly impact the consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by the amendments in this update. The guidance is effective for fiscal years beginning after 15 December 2015, and interim periods within those fiscal years. Upon adoption, an entity must apply the guidance retrospectively to all prior periods presented. The Company does not expect the adoption of this ASU to significantly impact the consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board (“IASB”) (collectively, the “Boards”) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under US GAAP and IFRS. The standard’s core principle (issued as ASU 2014-09 by the FASB and as IFRS 15 by the IASB), is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The new guidance must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. The effective date is fiscal years beginning after December 15, 2016. Early application is not permitted. The Company is currently evaluating the methods of adoption and the impact that ASU 2014-09 will have on the consolidated financial statements. In April 2015, the FASB proposed a one-year deferral of the effective dates of its new revenue recognition standard for public and nonpublic entities reporting under US GAAP.

Earnings per Common Share

Earnings per Common Share	6 Months Ended
	Jun. 30, 2015
Earnings per Common Share
Earnings per Common Share	3. Earnings per Common Share Basic earnings per share is calculated by using the weighted-average number of common shares outstanding during the period. The diluted earnings per share calculation is based on the weighted-average number of shares of common stock outstanding adjusted for the number of additional shares that would have been outstanding had all potentially dilutive common shares been issued. Potentially dilutive shares of common stock include stock options, convertible debt and unvested share awards. The dilutive effects of stock options and restricted stock awards are based on the treasury stock method. The dilutive effect of the assumed conversion of convertible debt is determined using the if-converted method. The after-tax effect of interest expense related to the convertible securities is added back to net income, and the convertible debt is assumed to have been converted into common shares at the beginning of the period. The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income attributable to common stockholders per common share. Stock options that are anti-dilutive and excluded from the following table totaled 459 and 1,508 for the three months ended June 30, 2015 and 2014 , respectively, and 345 and 1,329 for the six months ended June 30, 2015 and 2014 , respectively. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income attributable to common stockholders $ $ $ $ Income effect for interest on convertible debt, net of tax — — Numerator for diluted EPS- Income to common stockholders after assumed conversions $ $ $ $ Denominator: Weighted average common shares outstanding — basic Dilutive effect of: Shares from assumed conversion of convertible debt — — Options and unvested restricted shares Weighted average common shares outstanding — diluted

Fair Value Measurements of Asse

Fair Value Measurements of Assets and Liabilities	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements of Assets and Liabilities
Fair Value Measurements of Assets and Liabilities	4. Fair Value Measurements of Assets and Liabilities The Company classifies marketable securities as available-for-sale. The fair value hierarchy established in the guidance adopted by the Company prioritizes the inputs used in valuation techniques into three levels as follows: · Level 1 – Observable inputs – quoted prices in active markets for identical assets and liabilities; · Level 2 – Observable inputs – other than the quoted prices in active markets for identical assets and liabilities – includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, and amounts derived from valuation models where all significant inputs are observable in active markets; and · Level 3 – Unobservable inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable and require the Company to develop relevant assumptions. The following is a summary of assets and liabilities held by the Company and their related classifications under the fair value hierarchy: June 30, 2015 December 31, 2014 Level 1 (A) $ $ Level 2 (B) Level 3 (C) — Total $ $ (A) Level 1 assets include money market funds which are classified as cash equivalents and marketable securities, respectively . (B) Level 2 assets include certificates of deposit, municipal bonds, enhanced income money market funds and corporate bonds which are classified as marketable securities. (C) Level 3 liabilities include the contingent consideration obligation. The Company utilizes the market approach to measure fair value for its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. The Company's marketable securities investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No transfers of assets between Level 1 and Level 2 of the fair value measurement hierarchy occurred during the six months ended June 30, 2015 . The aggregate fair value of available-for-sale securities and aggregate amount of unrealized gains and losses for available-for-sale securities at June 30, 2015 were as follows: Aggregate Amount of Aggregate Unrealized Fair Value Gains Losses Due in one year or less $ $ $ Due after one year, less than five years $ $ $ The aggregate fair value of available-for-sale securities and aggregate amount of unrealized gains and losses for available-for-sale securities at December 31, 2014 were as follows: Aggregate Amount of Aggregate Unrealized Fair Value Gains Losses Due in one year or less $ $ $ Due after one year, less than five years $ $ $ Unrealized gains and losses are reported as a component of accumulated other comprehensive loss in stockholders' equity. The cost of securities sold is based on the specific identification method. The Company evaluates investments with unrealized losses to determine if the losses are other than temporary. The Company has determined that the gross unrealized losses as of June 30, 2015 and December 31, 2014 are temporary. In making this determination, the Company considered the financial condition, credit ratings and near-term prospects of the issuers, the underlying collateral of the investments, and the magnitude of the losses as compared to the cost and the length of time the investments have been in an unrealized loss position. Additionally, while the Company classifies the securities as available-for-sale, the Company does not currently intend to sell such investments and it is more likely than not to recover the carrying value prior to being required to sell such investments. The Company determined the fair value of the contingent consideration obligation using the probability-weighted income approach derived from quarterly revenue estimates and a probability assessment with respect to the likelihood of achieving the various performance criteria. The fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement. The significant unobservable inputs used in the fair value measurement of the Company's contingent consideration obligation are the probabilities of achieving certain financial targets and contractual milestones. Significant increases (decreases) in any of those probabilities in isolation may result in a higher (lower) fair value measurement. As of December 31, 2014, all of the financial targets and contractual milestones were met and on February 20, 2015 the Company paid out $8 million related to the Strumsoft Earn-out. The changes in fair value of the Company’s Level 3 contingent consideration obligation during the six months ended June 30, 2015 were as follows: Level 3 Balance at December 31, 2014 $ Payment of contingent consideration Balance at June 30, 2015 $ —

Acquisition

Acquisition	6 Months Ended
	Jun. 30, 2015
Acquisition
Acquisition	5. Acquisition F-Secure Corporation (“F-Secure”) On February 23, 2015, the Company acquired certain cloud assets from F-Secure, an online security and privacy company headquartered in Finland, for cash consideration of $59.5 million , net of liabilities assumed. The Company believes that the purchase will expand the Company’s cloud services customer base. On February 18, 2015, the Company entered into a patent license and settlement agreement whereby the Company granted F-Secure a limited license to the Company's patents. As part of the business combination accounting rules, the Company calculated the fair value of the license using an income approach, specifically a relief from royalty method, which incorporates significant estimates and assumptions made by management, which by their nature are characterized by uncertainty. Inputs used to value the license are considered Level 3 inputs. The Company determined the preliminary fair value of the net assets acquired as follows: Preliminary Purchase Price Allocation Intangible assets: Wtd. Avg. Technology $ 1 year Customer relationships 5 years Goodwill Total assets acquired Accrued expenses Net assets acquired $ The goodwill recorded in connection with this acquisition is based on operating synergies and other benefits expected to result from the combined operations and the assembled workforce acquired. The goodwill acquired will not be deductible for tax purposes. Acquisition-related costs recognized during the six months ended June 30, 2015 , including transaction costs such as legal, accounting, valuation and other professional services, were $862 thousand . Voxmobili SA (“Vox”) On July 11, 2014, the Company acquired all outstanding shares of Vox, a French company, for $25.1 million , net of cash acquired and liabilities assumed, subject to certain working capital adjustments. The Company believes that this acquisition contributed to its position as the leading provider of personal cloud solutions to the world’s largest mobile operators. The Company determined the preliminary fair value of the net assets acquired as follows: Purchase Price Allocation Cash $ Prepaid expenses and other assets Accounts receivable Intangible assets: Wtd. Avg. Technology 5 years Customer relationships 5 years Goodwill Total assets acquired Accounts payable and accrued liabilities Deferred revenues Deferred taxes Net assets acquired $ The Company adjusted the preliminary purchase price allocation during the quarter ended June 30, 2015 to increase deferred tax asset by $932 thousand . This adjustment offset goodwill and was the result of the Company analyzing and revising its tax positions in foreign jurisdictions. The goodwill recorded in connection with this acquisition was based on operating synergies and other benefits expected to result from the combined operations and the assembled workforce acquired. The goodwill acquired is not deductible for tax purposes. Acquisition-related costs, including transaction costs such as legal, accounting, valuation and other professional services, were $1.5 million.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity
Stockholders' Equity	6. Stockholders’ Equity Stock Options The Company uses the Black-Scholes option pricing model for determining the estimated fair value for stock-based awards. The weighted-average assumptions used in the Black-Scholes option pricing model are as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Expected stock price volatility % % % % Risk-free interest rate % % % % Expected life of options (in years) Expected dividend yield % % % % The weighted-average fair value (as of the date of grant) of the options was $17.47 and $12.02 per share for the three months ended June 30, 2015 and 2014 , respectively, and $16.56 and $14.59 per share for the six months ended June 30, 2015 and 2014 , respectively . During the three months ended June 30, 2015 and 2014 , the Company recorded total pre-tax stock-based compensation expense of $6.5 million ( $4.5 million after tax or $0.10 per diluted share) and $6.8 million ( $4.5 million after tax or $0.11 per diluted share), respectively, which includes the fair value for equity awards issued. During the six months ended June 30, 2015 and 2014 , the Company recorded total pre-tax stock-based compensation expense of $13.1 million ( $9.0 million after tax or $0.19 per diluted share) and $12.7 million ( $8.4 million after tax or $0.20 per diluted share), respectively, which includes the fair value for equity awards issued. The total stock-based compensation cost related to unvested equity awards not yet recognized as an expense as of June 30, 2015 was approximately $ 56.1 million. The expense is expected to be recognized over a weighted-average period of approximately 2.86 years. The following table summarizes information about stock options outstanding as of June 30, 2015 : Weighted- Average Weighted- Remaining Aggregate Number of Average Contractual Intrinsic Options Options Exercise Price Term (Years) Value Outstanding at December 31, 2014 $ Options Granted Options Exercised Options Cancelled Outstanding at June 30, 2015 $ $ Vested or expected to vest at June 30, 2015 $ $ Exercisable at June 30, 2015 $ $ A summary of the Company’s unvested restricted stock at June 30, 2015 , and changes during the six months ended June 30, 2015 , is presented below: Number of Non-Vested Restricted Stock Awards Non-vested at December 31, 2014 Granted Vested Forfeited Non-vested at June 30, 2015 Employee Stock Purchase Plan On February 1, 2012, the Company established a ten year Employee Stock Purchase Plan (“ESPP” or the “Plan”) for certain eligible employees. The Plan is to be administered by the Company’s Board of Directors. The total number of shares available for purchase under the Plan is 500 thousand shares of the Company’s Common Stock. Employees participate over a six month period through payroll withholdings and may purchase, at the end of the six month period, the Company’s Common Stock at the lower of 85% of the fair market value on the first day of the offering period or the fair market value on the purchase date. No participant will be granted a right to purchase Common Stock under the Plan if such participant would own more than 5% of the total combined voting power of the Company. In addition, no participant may purchase more than one thousand shares of Common Stock within any purchase period. The expected life of ESPP shares is the average of the remaining purchase period under each offering period. The weighted-average assumptions used to value employee stock purchase rights are as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Expected stock price volatility % % % % Risk-free interest rate % % % % Expected life (in years) Expected dividend yield % % % % During the three months ended June 30, 2015 and 2014 , the Company recorded $175 thousand and $156 thousand , respectively, of compensation expense related to the ESPP. During the six months ended June 30, 2015 and 2014 , the Company recorded $325 thousand and $355 thousand , respectively, of compensation expense related to the ESPP. During the six months ended June 30, 2015 and 2014 , t he Company sold a total of 29 thousand and 27 thousand shares, respectively, of its Treasury Stock pursuant to purchases under its ESPP. There were no shares sold during the three months ended June 30, 2015 and 2014 . Cash received from purchases through the ESPP during the three months ended June 30, 2015 and 2014 , was approximately $975 thousand and $740 thousand , respectively, and is included within the financing activities section of the consolidated statements of cash flows. The total unrecognized compensation expense related to the ESPP as of June 30, 2015 was approximately $77 thousand , which is expected to be recognized over the remainder of the offering period.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss).
Accumulated Other Comprehensive Income (Loss)	7. Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) was as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income $ $ $ $ Translation adjustments Unrealized (loss) gain on securities, (net of tax) — Net income (loss) on intra-entity foreign currency transactions — — Total comprehensive income $ $ $ $ The changes in accumulated other comprehensive income (loss) during the six months ended June 30, 2015 , are as follows, net of tax: Unrealized (Loss) Income on Unrealized Holding Intra-Entity Gains (Losses) on Foreign Foreign Currency Available-for-Sale Currency Transactions Securities Total Balance at December 31, 2014 $ $ $ $ Other comprehensive (loss) income Total comprehensive (loss) income Balance at June 30, 2015 $ $ $ $

Goodwill and Intangibles

Goodwill and Intangibles	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangibles
Goodwill	8. Goodwill and Intangibles Goodwill The Company recorded Goodwill which represents the excess of the purchase price over the fair value of assets acquired, including other definite-lived intangible assets. Goodwill is not amortized, but reviewed annually for impairment or upon the occurrence of events or changes in circumstances that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The changes in Goodwill during the six months ended June 30, 2015 are as follows: Balance at December 31, 2014 $ F-Secure acquisition Reclassifications, adjustments and other Translation adjustments Balance at June 30, 2015 $ The reclassification adjustment of $932 thousand is primarily related to an increase in the Company’s deferred tax asset in connection with a pre-acquisition tax loss. Other Intangible Assets The Company’s intangible assets with definite lives consist primarily of trade names, technology, and customer lists and relationships. These intangible assets are being amortized on the straight ‑ line method over the estimated useful lives of the assets. The Company’s intangible assets consist of the following: Weighted June 30, 2015 Average Accumulated Life Cost Amortization Net Trade name $ $ $ Technology Customer lists and relationships Capitalized software and patents Order Backlog — — $ $ $ Weighted December 31, 2014 Average Accumulated Life Cost Amortization Net Trade name $ $ $ Technology Customer lists and relationships Capitalized software and patents Order Backlog — — $ $ $

Debt

Debt	6 Months Ended
	Jun. 30, 2015
Debt
Debt	9. Debt Credit Facility In September 2013, the Company entered into a Credit Agreement (the “Credit Facility”) with JP Morgan Chase Bank, N.A., as the administrative agent, Wells Fargo Bank, National Association, as the syndication agent and Capital One, National Association and KeyBank National Association, as co-documentation agents. The Credit Facility, which can be used for general corporate purposes, is a $100 million unsecured revolving line of credit that matures on September 27, 2018. The Company pays a commitment fee in the range of 25 to 35 basis points on the unused balance of the revolving credit facility under the Credit Agreement. Commitment fees totaled approximately $88 thousand and $44 thousand during the three months ended June 30, 2015 and 2014 , respectively and $ 151 thousand and $106 thousand during the six months ended June 30, 2015 and 2014 , respectively. Synchronoss has the right to request an increase in the aggregate principal amount of the Credit Facility to $150 million. The Credit Facility is subject to certain financial covenants. As of June 30, 2015 , the Company was in compliance with all required covenants and there were no outstanding balances on the Credit Facility. Convertible Senior Notes On August 12, 2014, the Company issued $230.0 million aggregate principal amount of its 0.75% Convertible Senior Notes due in 2019 (the “2019 Notes”). The 2019 Notes mature on August 15, 2019, and bear interest at a rate of 0.75% per annum payable semi-annually in arrears on February 15 and August 15 of each year. The Company accounted for the $230.0 million face value of the debt as a liability and capitalized approximately $7.1 million of financing fees, related to the issuance. The 2019 Notes are senior, unsecured obligations of the Company, and are convertible into shares of its common stock based on a conversion rate of 18.8072 shares per $1,000 principal amount of 2019 Notes which is equivalent to an initial conversion price of approximately $53.17 per share. The Company will satisfy any conversion of the 2019 Notes with shares of the Company’s common stock. The 2019 Notes are convertible at the note holders’ option prior to their maturity and if specified corporate transactions occur. The issue price of the 2019 Notes was equal to their face amount. Holders of the 2019 Notes who convert their notes in connection with a qualifying fundamental change, as defined in the related indenture, may be entitled to a make-whole premium in the form of an increase in the conversion rate. Additionally, following the occurrence of a fundamental change, holders may require that the Company repurchase some or all of the 2019 Notes for cash at a repurchase price equal to 100% of the principal amount of the notes being repurchased, plus accrued and unpaid interest, if any. As of June 30, 2015 , none of these conditions existed with respect to the 2019 Notes and as a result, the 2019 Notes are classified as long term. The 2019 Notes are the Company’s direct senior unsecured obligations and rank equal in right of payment to all of the Company’s existing and future unsecured and unsubordinated indebtedness. At June 30, 2015 , the carrying amount of the liability and the outstanding principal of the 2019 Notes was $230.0 million, with an effective interest rate of approximately 1.36% . The fair value of the 2019 Notes was $259.5 million at June 30, 2015 . The interest expense of the Company’s 2019 Notes related to the contractual interest coupon was $431 thousand for the three months ended June 30, 2015 and $863 thousand for the six months ended June 30, 2015 . There was no interest expense related to the 2019 Notes for the three and six months ended June 30, 2014 .

Restructuring Charges

Restructuring Charges	6 Months Ended
	Jun. 30, 2015
Restructuring Charges
Restructuring Charges	10. Restructuring In January 2015, the Company initiated the preliminary phase of a work-force reduction as part of a corporate restructuring, with reductions occurring across all levels and departments within the Company. This measure was intended to reduce costs and to align the Company’s resources with its key strategic priorities. As of June 30, 2015 , there was $825 thousand of unpaid restructuring charges classified under accrued expenses on the balance sheet. A summary of the Company’s restructuring accrual at June 30, 2015 and changes during the six months ended June 30, 2015 , is presented below: Balance at Balance at December 31, 2014 Charges Payments June 30, 2015 Employment termination costs $ — $ $ $ Facilities consolidation — — Total $ — $ $ $

Legal Matters

Legal Matters	6 Months Ended
	Jun. 30, 2015
Legal Matters
Legal Matters	11. Legal Matters On October 7, 2014, the company filed an amended complaint in the United States District Court for the District of New Jersey (Civ Act. No. 3:14-cv-06220) against F-Secure Corporation and F-Secure, Inc. (collectively, “F-Secure"), claiming that F-Secure has infringed, and continues to infringe, several of the Company’s patents. In February 2015, Synchronoss entered into a patent license and settlement agreement with F-Secure Corporation and F-Secure, Inc. whereby the Company granted each of these companies (but not their subsidiaries or affiliates) a limited license to Synchronoss’ patents. As a result of entering into the patent license and settlement agreement, the parties filed a joint stipulation to dismiss the above complaint. The Company’s 2011 acquisition agreement with Miyowa SA provided that former shareholders of Miyowa SA would be eligible for earn-out payments, to the extent specified business milestones were achieved following the acquisition. In December 2013, Eurowebfund and Bakamar, two former shareholders of Miyowa SA, filed a complaint against the Company in the Commercial Court of Paris, France claiming that they are entitled to certain earn-out payments u nder the acquisition agreement. The Company was served with a copy of this complaint in January 2014. The Company believes Miyowa SA failed to meet the criteria required for it to pay the claimed amounts and that no earn-out payments are owed . The Company continues to pursue its claims and defend all counterclaims, which counterclaims the Company believes are without merit. However, due to the inherent uncertainties of litigation, the Company cannot predict the outcome of the lawsuit or estimate any potential loss if the outcome is adverse to the Company. The Company is not currently subject to any legal proceedings that could have a material adverse effect on its operations; however, it may from time to time become a party to various legal proceedings arising in the ordinary course of its business. The Company is currently the plaintiff in several patent infringement cases. The defendants in several of these cases have filed counterclaims. Although the Company cannot predict the outcome of the cases at this time due to the inherent uncertainties of litigation, the Company continues to pursue its claims and believes that the counterclaims are without merit, and the Company intends to defend all such counterclaims.

Subsequent Events Review

Subsequent Events Review	6 Months Ended
	Jun. 30, 2015
Subsequent Events Review
Subsequent Events Review	12. Subsequent Events Review The Company has evaluated all subsequent events and transactions through the filing date.

Basis of Presentation and Con19

Basis of Presentation and Consolidation (Policies)	6 Months Ended
	Jun. 30, 2015
Basis of Presentation and Consolidation
Impact of Recently Issued Accounting Standards	Impact of Recently Issued Accounting Standards In May 2015, the FASB issued ASU 2015-08, “'Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115” (“ASU 2015-08”). The amendments in ASU 2015-08 amend various SEC paragraphs included in the FASB’s Accounting Standards Codification to reflect the issuance of Staff Accounting Bulletin No. 115 (“SAB 115”). SAB 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The Company has adopted the amendments in ASU 2015-08, effective May 8, 2015, as the amendments in the update are effective upon issuance. The adoption of this ASU did not significantly impact the consolidated financial statements. In April 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” This amendment removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share. The updated guidance is effective for public entities for interim and annual periods beginning after December 15, 2016 and early adoption is not permitted. The Company does not expect the adoption of this ASU to significantly impact the consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, Intangible – Goodwill and Other Internal Use Software (Topic 350-40), as part of its initiative to reduce complexity in accounting standards. This guidance clarified how customers in cloud computing arrangements should determine whether the arrangement includes a software license. The guidance also eliminates the existing requirement for customers to account for software licenses that they acquire by analogizing to the guidance on leases. Instead, entities will account for these arrangements as licenses of intangible assets. For public business entities, the FASB decided that the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for all entities. The Company does not expect the adoption of this ASU to significantly impact the consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by the amendments in this update. The guidance is effective for fiscal years beginning after 15 December 2015, and interim periods within those fiscal years. Upon adoption, an entity must apply the guidance retrospectively to all prior periods presented. The Company does not expect the adoption of this ASU to significantly impact the consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board (“IASB”) (collectively, the “Boards”) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under US GAAP and IFRS. The standard’s core principle (issued as ASU 2014-09 by the FASB and as IFRS 15 by the IASB), is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The new guidance must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. The effective date is fiscal years beginning after December 15, 2016. Early application is not permitted. The Company is currently evaluating the methods of adoption and the impact that ASU 2014-09 will have on the consolidated financial statements. In April 2015, the FASB proposed a one-year deferral of the effective dates of its new revenue recognition standard for public and nonpublic entities reporting under US GAAP.

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings per Common Share
Schedule of reconciliation of the numerator and denominator used in computing basic and diluted net income attributable to common stockholders per common share	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income attributable to common stockholders $ $ $ $ Income effect for interest on convertible debt, net of tax — — Numerator for diluted EPS- Income to common stockholders after assumed conversions $ $ $ $ Denominator: Weighted average common shares outstanding — basic Dilutive effect of: Shares from assumed conversion of convertible debt — — Options and unvested restricted shares Weighted average common shares outstanding — diluted

Fair Value Measurements of As21

Fair Value Measurements of Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements of Assets and Liabilities
Schedule of assets and liabilities held and their related classifications under the fair value hierarchy	June 30, 2015 December 31, 2014 Level 1 (A) $ $ Level 2 (B) Level 3 (C) — Total $ $ (A) Level 1 assets include money market funds which are classified as cash equivalents and marketable securities, respectively . (B) Level 2 assets include certificates of deposit, municipal bonds, enhanced income money market funds and corporate bonds which are classified as marketable securities. (C) Level 3 liabilities include the contingent consideration obligation.
Schedule of aggregate fair value of available-for-sale securities and aggregate amount of unrealized gains and losses for available-for-sale securities	The aggregate fair value of available-for-sale securities and aggregate amount of unrealized gains and losses for available-for-sale securities at June 30, 2015 were as follows: Aggregate Amount of Aggregate Unrealized Fair Value Gains Losses Due in one year or less $ $ $ Due after one year, less than five years $ $ $ The aggregate fair value of available-for-sale securities and aggregate amount of unrealized gains and losses for available-for-sale securities at December 31, 2014 were as follows: Aggregate Amount of Aggregate Unrealized Fair Value Gains Losses Due in one year or less $ $ $ Due after one year, less than five years $ $ $
Schedule of changes in fair value of Level 3 contingent consideration obligation	Level 3 Balance at December 31, 2014 $ Payment of contingent consideration Balance at June 30, 2015 $ —

Acquisition (Tables)

Acquisition (Tables)	6 Months Ended
	Jun. 30, 2015
F-Secure Corporation ("F-Secure")
Acquisition
Summary of fair values of assets and liabilities assumed at acquisition date	Preliminary Purchase Price Allocation Intangible assets: Wtd. Avg. Technology $ 1 year Customer relationships 5 years Goodwill Total assets acquired Accrued expenses Net assets acquired $
Vox
Acquisition
Summary of purchase price	Purchase Price Allocation Cash $ Prepaid expenses and other assets Accounts receivable Intangible assets: Wtd. Avg. Technology 5 years Customer relationships 5 years Goodwill Total assets acquired Accounts payable and accrued liabilities Deferred revenues Deferred taxes Net assets acquired $

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity
Schedule of weighted-average assumptions used in the Black-Scholes option pricing model	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Expected stock price volatility % % % % Risk-free interest rate % % % % Expected life of options (in years) Expected dividend yield % % % %
Schedule of information about stock options outstanding	Weighted- Average Weighted- Remaining Aggregate Number of Average Contractual Intrinsic Options Options Exercise Price Term (Years) Value Outstanding at December 31, 2014 $ Options Granted Options Exercised Options Cancelled Outstanding at June 30, 2015 $ $ Vested or expected to vest at June 30, 2015 $ $ Exercisable at June 30, 2015 $ $
Schedule of non-vested restricted stock and changes	Number of Non-Vested Restricted Stock Awards Non-vested at December 31, 2014 Granted Vested Forfeited Non-vested at June 30, 2015
Schedule of weighted-average assumptions used to value employee stock purchase rights	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Expected stock price volatility % % % % Risk-free interest rate % % % % Expected life (in years) Expected dividend yield % % % %

Accumulated Other Comprehensi24

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss).
Schedule of comprehensive income (loss)	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income $ $ $ $ Translation adjustments Unrealized (loss) gain on securities, (net of tax) — Net income (loss) on intra-entity foreign currency transactions — — Total comprehensive income $ $ $ $
Schedule of changes in accumulated other comprehensive income (loss)	The changes in accumulated other comprehensive income (loss) during the six months ended June 30, 2015 , are as follows, net of tax: Unrealized (Loss) Income on Unrealized Holding Intra-Entity Gains (Losses) on Foreign Foreign Currency Available-for-Sale Currency Transactions Securities Total Balance at December 31, 2014 $ $ $ $ Other comprehensive (loss) income Total comprehensive (loss) income Balance at June 30, 2015 $ $ $ $

Goodwill and intangibles (Table

Goodwill and intangibles (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Goodwill and Intangibles
Schedule of changes in goodwill	Balance at December 31, 2014 $ F-Secure acquisition Reclassifications, adjustments and other Translation adjustments Balance at June 30, 2015 $
Schedule of composition of intangible assets	Weighted June 30, 2015 Average Accumulated Life Cost Amortization Net Trade name $ $ $ Technology Customer lists and relationships Capitalized software and patents Order Backlog — — $ $ $	Weighted December 31, 2014 Average Accumulated Life Cost Amortization Net Trade name $ $ $ Technology Customer lists and relationships Capitalized software and patents Order Backlog — — $ $ $

Restructuring Charges (Tables)

Restructuring Charges (Tables)	6 Months Ended
	Jun. 30, 2015
Restructuring Charges
Summary of the restructuring accrual and changes	Balance at Balance at December 31, 2014 Charges Payments June 30, 2015 Employment termination costs $ — $ $ $ Facilities consolidation — — Total $ — $ $ $

Earnings per Common Share (Deta

Earnings per Common Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator:
Net income attributable to common stockholders	$ 15,154	$ 8,364	$ 25,715	$ 15,949
Income effect for interest on convertible debt, net of tax	514		995
Numerator for diluted EPS- Income to common stockholders after assumed conversions	$ 15,668	$ 8,364	$ 26,710	$ 15,949
Denominator:
Weighted average common shares outstanding - basic	41,870	40,139	41,898	39,961
Dilutive effect of:
Shares from assumed conversion of convertible debt	4,326		4,326
Options and unvested restricted shares	1,075	839	1,147	917
Weighted average common shares outstanding - diluted	47,271	40,978	47,371	40,878
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options that are anti-dilutive and excluded from calculation of diluted earnings per share (in shares)	459	1,508	345	1,329

Fair Value Measurements of As28

Fair Value Measurements of Assets and Liabilities - Heirarchy (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Summary of assets and liabilities held by the Company and their related classifications under the fair value hierarchy
Fair value of asset transfers from Level 1 to Level 2	$ 0
Fair value of asset transfers from Level 2 to Level 1	0
Level 1
Summary of assets and liabilities held by the Company and their related classifications under the fair value hierarchy
Money market funds	176,053	$ 235,967
Level 2
Summary of assets and liabilities held by the Company and their related classifications under the fair value hierarchy
Certificates of deposit, municipal bonds and corporate bonds	73,263	54,410
Level 3
Summary of assets and liabilities held by the Company and their related classifications under the fair value hierarchy
Contingent consideration obligation		(8,000)
Total
Summary of assets and liabilities held by the Company and their related classifications under the fair value hierarchy
Fair value of net assets	$ 249,316	$ 282,377

Fair Value Measurements of As29

Fair Value Measurements of Assets and Liabilities - Available-for-Sale Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Aggregate Fair Value
Due in one year or less	$ 65,939	$ 51,097
Due after one year, less than five years	7,324	3,313
Total	73,263	54,410
Aggregate Amount of Unrealized Gains
Due in one year or less	7	10
Due after one year, less than five years	7	2
Total	14	12
Aggregate Amount of Unrealized Losses
Due in one year or less	(92)	(72)
Due after one year, less than five years	(7)	(3)
Total	$ (99)	$ (75)

Fair Value Measurements of As30

Fair Value Measurements of Assets and Liabilities - Level 3 (Details) - USD ($) $ in Thousands	Feb. 20, 2015	Jun. 30, 2015
Strumsoft, Inc. (Strumsoft)
Changes in fair value of the Company's Level 3 contingent consideration obligation
Earn-out compensation due to Strumsoft employees	$ (8,000)
Level 3 | Contingent Consideration Obligation
Changes in fair value of the Company's Level 3 contingent consideration obligation
Balance as at the beginning of the period		$ 8,000
Level 3 | Contingent Consideration Obligation | Strumsoft, Inc. (Strumsoft)
Changes in fair value of the Company's Level 3 contingent consideration obligation
Earn-out compensation due to Strumsoft employees		$ (8,000)

Acquisition - 2015 Acquisitions

Acquisition - 2015 Acquisitions (Details) - USD ($)	Feb. 23, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Acquisition
Payments to acquire business, net of cash acquired		$ 59,481,000	$ 6,322,000
Preliminary Purchase Price Allocation
Goodwill		175,611,000		$ 147,135,000
F-Secure Corporation ("F-Secure")
Acquisition
Payments to acquire business, net of cash acquired	$ 59,500,000
Preliminary Purchase Price Allocation
Goodwill	36,454,000
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Assets Including Goodwill	60,000,000
Accrued Expenses	519,000
Net assets acquired	59,481,000
Goodwill and acquisition related costs
Purchase price, tax deductible portion of goodwill		0
Acquisition-related costs		$ 862,000
Technology
Preliminary Purchase Price Allocation
Estimated useful life		7 years		7 years
Technology | F-Secure Corporation ("F-Secure")
Preliminary Purchase Price Allocation
Intangible assets	$ 3,071,000
Estimated useful life	1 year
Customer relationships | F-Secure Corporation ("F-Secure")
Preliminary Purchase Price Allocation
Intangible assets	$ 20,475,000
Estimated useful life	5 years

Acquisition - 2014 Acquisitions

Acquisition - 2014 Acquisitions (Details) - USD ($)	Jul. 11, 2014	Sep. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Acquisition
Payments to acquire business, net of cash acquired			$ 59,481,000	$ 6,322,000
Preliminary Purchase Price Allocation
Goodwill.			175,611,000		$ 147,135,000
Vox
Acquisition
Payments to acquire business, net of cash acquired	$ 25,100,000
Preliminary Purchase Price Allocation
Cash	1,414,000
Prepaid expenses and other assets	220,000
Accounts receivable	3,750,000
Goodwill.	16,252,000
Total assets acquired	31,536,000
Accounts payable and accrued liabilities	2,118,000
Deferred revenues	457,000
Deferred taxes	2,402,000
Net assets acquired	26,559,000
Goodwill and acquisition related costs
Purchase price, tax deductible portion of goodwill			$ 0
Acquisition-related costs		$ 1,500,000
Technology
Preliminary Purchase Price Allocation
Estimated useful life			7 years		7 years
Technology | Vox
Preliminary Purchase Price Allocation
Intangible assets	$ 4,900,000
Estimated useful life	5 years
Customer relationships | Vox
Preliminary Purchase Price Allocation
Intangible assets	$ 5,000,000
Estimated useful life	5 years

Stockholders' Equity - Option A

Stockholders' Equity - Option Awards Fair Value Assumptions (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Weighted-average assumptions used in the Black-Scholes option pricing model
Expected stock price volatility (as a percent)			40.00%	64.00%
Risk-free interest rate (as a percent)			0.05%	0.08%
Expected life (in years)			6 months	6 months
Expected dividend yield (as a percent)			0.00%	0.00%
Share-based compensation expense additional disclosures
Pre-tax stock-based compensation expense recorded		$ 6.8
Stock-based compensation expense per diluted share (in dollars per share)			$ 0.19	$ 0.20
Stock Options
Weighted-average assumptions used in the Black-Scholes option pricing model
Expected stock price volatility (as a percent)	48.00%	49.00%	48.00%	58.00%
Risk-free interest rate (as a percent)	1.29%	1.27%	1.26%	1.43%
Expected life (in years)	4 years	4 years 2 months 12 days	4 years 4 days	4 years 3 months
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%
Share-based compensation expense additional disclosures
Weighted-average fair value (as of the date of grant) of the options granted during the period (in dollars per share)	$ 17.47	$ 12.02	$ 16.56	$ 14.59
Pre-tax stock-based compensation expense recorded	$ 6.5		$ 13.1	$ 12.7
After tax stock-based compensation expense	$ 4.5	$ 4.5		$ 8.4
Stock-based compensation expense per diluted share (in dollars per share)	$ 0.10	$ 0.11
Stock-based compensation cost related to non-vested equity awards not yet recognized as an expense	$ 56.1		$ 56.1
Weighted-average period over which stock-based compensation cost related to non-vested equity awards is expected to be recognized			2 years 10 months 10 days

Stockholders' Equity - Option34

Stockholders' Equity - Option Activity (Details) - Jun. 30, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Total
Number of Options
Options outstanding at the beginning of the period (in shares)	2,767
Options Granted (in shares)	515
Options Exercised (in shares)	(505)
Options Cancelled (in shares)	(161)
Options outstanding at the end of the period (in shares)	2,616
Vested or expected to vest (in shares)	2,442
Exercisable (in shares)	1,347
Weighted-Average Exercise Price
Balance at the beginning of the period (in dollars per share)	$ 25.81
Options Granted (in dollars per share)	43.04
Options Exercised (in dollars per share)	23.43
Options Cancelled (in dollars per share)	31.80
Balance at the end of the period (in dollars per share)	29.28
Vested or expected to vest (in dollars per share)	28.86
Exercisable (in dollars per share)	$ 23.17
Weighted-Average Remaining Contractual Term
Outstanding	4 years 7 months 10 days
Vested or expected to vest	4 years 6 months 4 days
Exercisable	3 years 4 months 6 days
Aggregate Intrinsic Value
Outstanding	$ 43,230
Vested or expected to vest	41,395
Exercisable	$ 30,533

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock (Details) - Restricted Stock shares in Thousands	6 Months Ended
	Jun. 30, 2015shares
Number of Awards
Non-vested at the beginning of the period (in shares)	1,342
Granted (in shares)	693
Vested (in shares)	(456)
Forfeited (in shares)	(128)
Non-vested at the end of the period (in shares)	1,451

Stockholders' Equity - Employee

Stockholders' Equity - Employee Stock Purchase Plan (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Weighted-average assumptions used in the Black-Scholes option pricing model
Expected stock price volatility (as a percent)			40.00%	64.00%
Risk-free interest rate (as a percent)			0.05%	0.08%
Expected life (in years)			6 months	6 months
Expected dividend yield (as a percent)			0.00%	0.00%
Other information
Allocated Share-based Compensation Expense		$ 6,800
Cash received under program			$ 975	$ 740
Proceeds from Sale of Treasury Stock			$ 975	740
ESPP Plan
Employee Stock Purchase Plan
Term of Employee Stock Purchase Plan			10 years
Total number of shares available for purchase	500		500
Employee Stock Purchase Plan Payroll Withholding Period			6 months
Percentage of fair market value of common stock			85.00%
Maximum Percentage of total combined voting power a participant is allowed to be granted a right to purchase common stock			5.00%
Weighted-average assumptions used in the Black-Scholes option pricing model
Expected stock price volatility (as a percent)	42.00%	63.00%
Risk-free interest rate (as a percent)	0.07%	0.07%
Expected life (in years)	6 months	6 months
Expected dividend yield (as a percent)	0.00%	0.00%
Other information
Compensation expense	$ 175	$ 156	$ 9,000
Allocated Share-based Compensation Expense			$ 325	$ 355
Number of shares sold under Employee Stock Purchase Plan			29	27
Cash received under program	975	740
Proceeds from Sale of Treasury Stock	975	$ 740
Unrecognized compensation cost	$ 77		$ 77
ESPP Plan | Maximum
Employee Stock Purchase Plan
Maximum number of shares allowed to be purchased by single participant			1

Accumulated Other Comprehensi37

Accumulated Other Comprehensive Income (Loss) - Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Comprehensive income (loss)
Net income	$ 15,154	$ 8,364	$ 25,715	$ 15,949
Translation adjustments	6,357	(497)	(10,480)	498
Unrealized (loss) income on securities, (net of tax)	(107)		134	4
Net income (loss) on intra-entity foreign currency transactions	530		(2,342)
Total comprehensive income	$ 21,934	$ 7,867	$ 13,027	$ 16,451

Accumulated Other Comprehensi38

Accumulated Other Comprehensive Income (Loss) - Changes in AOCI (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period	$ (20,014)
Other comprehensive income	(12,688)
Total other comprehensive income (loss)	(12,688)
Balance at the end of the period	(32,702)
Foreign Currency
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period	(16,980)
Other comprehensive income	(10,480)
Total other comprehensive income (loss)	(10,480)
Balance at the end of the period	(27,460)
Unrealized (Loss) Income on Intra-Entity Foreign Currency Transactions
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period	(2,857)
Other comprehensive income	(2,342)
Total other comprehensive income (loss)	(2,342)
Balance at the end of the period	(5,199)
Unrealized Holding Gains (Losses) on Available-for-Sale Securities
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period	(177)
Other comprehensive income	134
Total other comprehensive income (loss)	134
Balance at the end of the period	$ (43)

Goodwill and Intangibles- Goodw

Goodwill and Intangibles- Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Goodwill
Balance at the beginning of the period	$ 147,135
Acquisitions	36,454
Goodwill, Subsequent Recognition of Deferred Tax Asset	(932)
Translation adjustments	(7,046)
Balance at the end of the period	$ 175,611

Goodwill and Intangibles - Inta

Goodwill and Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Intangible assets:
Gross amount	$ 165,850	$ 157,609
Accumulated amortization	(60,321)	(58,120)
Net amount	$ 105,529	$ 99,489
Trade Name
Intangible assets
Estimated useful life of assets	4 years	4 years
Intangible assets:
Gross amount	$ 1,539	$ 1,589
Accumulated amortization	(1,331)	(1,324)
Net amount	$ 208	$ 265
Technology
Intangible assets
Estimated useful life of assets	7 years	7 years
Intangible assets:
Gross amount	$ 66,587	$ 71,155
Accumulated amortization	(28,614)	(28,484)
Net amount	$ 37,973	$ 42,671
Customer lists and relationships
Intangible assets
Estimated useful life of assets	9 years	9 years
Intangible assets:
Gross amount	$ 87,770	$ 74,601
Accumulated amortization	(26,355)	(25,283)
Net amount	$ 61,415	$ 49,318
Capitalized software and patents
Intangible assets
Estimated useful life of assets	3 years	3 years
Intangible assets:
Gross amount	$ 9,036	$ 9,346
Accumulated amortization	(3,103)	(2,111)
Net amount	5,933	7,235
Order Backlog
Intangible assets:
Gross amount	918	918
Accumulated amortization	$ (918)	$ (918)

Debt - Credit Facility (Details

Debt - Credit Facility (Details) - Credit Facility - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Credit Facility
Borrowing capacity	$ 100,000		$ 100,000
Commitment fee on unused balance	88	$ 44	151	$ 106
Amount of borrowing capacity to which the company has a right to request an increase			150,000
Amount outstanding	$ 0		$ 0
Minimum
Credit Facility
Commitment fee on unused balance (as a percent)			0.25%
Maximum
Credit Facility
Commitment fee on unused balance (as a percent)			0.35%

Debt - Convertible Senior Notes

Debt - Convertible Senior Notes (Details) - 2019 Notes - USD ($)	Aug. 12, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Debt
Face amount of debt issued	$ 230,000,000
Interest rate, as a percent	0.75%
Capitalized finance fees	$ 7,100,000
Conversion ratio	0.0188072
Conversion price	$ 53.17
Repurchase price, expressed as a percentage of principal of debt repurchased	100.00%
Carrying amount of debt		$ 230,000,000		$ 230,000,000
Effective Interest Rate (as a percent)		1.36%		1.36%
Fair value of debt		$ 259,500,000		$ 259,500,000
Interest expense		$ 431,000	$ 0	$ 863,000	$ 0

Restructuring Charges (Details)

Restructuring Charges (Details) - Jun. 30, 2015 - USD ($) $ in Thousands	Total	Total
Restructuring accrual and changes
Balance at the beginning of the period		$ 0
Charges	$ 1,451	4,691
Payments		(3,866)
Balance at the end of the period	825	825
Employment termination costs
Restructuring accrual and changes
Balance at the beginning of the period		0
Payments		(3,866)
Balance at the end of the period	762	762
Restructuring charges for Employment termination costs		4,628
Other restructuring costs
Restructuring accrual and changes
Balance at the beginning of the period		0
Charges		63
Payments		0
Balance at the end of the period	$ 63	$ 63

Legal Matters (Details)

Legal Matters (Details) - Miyowa	1 Months Ended
	Dec. 31, 2013item	Jun. 30, 2015USD ($)
Legal Matters
Earn-out payments due		$ 0
Infringement of patents
Legal Matters
Number of former shareholders | item	2