Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 25, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'blkb | ' |
Entity Registrant Name | 'BLACKBAUD INC | ' |
Entity Central Index Key | '0001280058 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 46,178,721 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $24,847 | $11,889 |
Donor restricted cash | 44,339 | 107,362 |
Accounts receivable, net of allowance of $5,259 and $5,613, at June 30, 2014 and December 31, 2013, respectively | 84,425 | 66,969 |
Prepaid expenses and other current assets | 28,271 | 30,115 |
Deferred tax asset, current portion | 10,241 | 13,434 |
Total current assets | 192,123 | 229,769 |
Property and equipment, net | 47,390 | 49,550 |
Goodwill | 277,200 | 264,599 |
Intangible assets, net | 150,877 | 143,441 |
Other assets | 20,668 | 19,251 |
Total assets | 688,258 | 706,610 |
Current liabilities: | ' | ' |
Trade accounts payable | 8,904 | 10,244 |
Accrued expenses and other current liabilities | 45,160 | 40,443 |
Donations payable | 44,339 | 107,362 |
Debt, current portion | 4,375 | 17,158 |
Deferred revenue, current portion | 190,228 | 181,475 |
Total current liabilities | 293,006 | 356,682 |
Debt, net of current portion | 167,770 | 135,750 |
Deferred tax liability | 36,323 | 36,880 |
Deferred revenue, net of current portion | 10,187 | 9,099 |
Other liabilities | 7,994 | 6,655 |
Total liabilities | 515,280 | 545,066 |
Commitments and contingencies (see Note 12) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock; 20,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $0.001 par value; 180,000,000 shares authorized, 55,776,295 and 55,699,817 shares issued at June 30, 2014 and December 31, 2013, respectively | 56 | 56 |
Additional paid-in capital | 230,944 | 220,763 |
Treasury stock, at cost; 9,599,751 and 9,573,102 shares at June 30, 2014 and December 31, 2013, respectively | -184,173 | -183,288 |
Accumulated other comprehensive loss | -1,297 | -1,385 |
Retained earnings | 127,448 | 125,398 |
Total stockholders' equity | 172,978 | 161,544 |
Total liabilities and stockholders' equity | $688,258 | $706,610 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance | $5,259 | $5,613 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 55,776,295 | 55,699,817 |
Treasury stock, shares | 9,599,751 | 9,573,102 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue | ' | ' | ' | ' |
License fees | $4,541 | $5,990 | $8,448 | $8,970 |
Subscriptions | 64,985 | 51,964 | 123,253 | 99,720 |
Services | 31,795 | 31,368 | 59,925 | 60,206 |
Maintenance | 36,527 | 34,122 | 72,179 | 68,270 |
Other revenue | 1,540 | 2,024 | 3,205 | 3,925 |
Total revenue | 139,388 | 125,468 | 267,010 | 241,091 |
Cost of revenue | ' | ' | ' | ' |
Cost of license fees | 497 | 643 | 1,027 | 1,368 |
Cost of subscriptions | 31,749 | 21,605 | 61,873 | 41,988 |
Cost of services | 25,540 | 26,503 | 51,803 | 51,902 |
Cost of maintenance | 5,983 | 6,561 | 11,397 | 12,435 |
Cost of other revenue | 927 | 1,301 | 1,926 | 2,498 |
Total cost of revenue | 64,696 | 56,613 | 128,026 | 110,191 |
Gross profit | 74,692 | 68,855 | 138,984 | 130,900 |
Operating expenses | ' | ' | ' | ' |
Sales and marketing | 26,433 | 24,423 | 51,549 | 48,815 |
Research and development | 18,064 | 16,483 | 34,558 | 32,912 |
General and administrative | 13,781 | 12,849 | 26,599 | 25,591 |
Restructuring | 0 | 146 | 0 | 3,356 |
Amortization | 418 | 636 | 1,005 | 1,314 |
Total operating expenses | 58,696 | 54,537 | 113,711 | 111,988 |
Income from operations | 15,996 | 14,318 | 25,273 | 18,912 |
Interest income | 13 | 20 | 29 | 37 |
Interest expense | -1,328 | -1,497 | -2,787 | -3,191 |
Loss on debt extinguishment and termination of derivative instruments | 0 | 0 | -996 | 0 |
Other income (expense), net | 225 | -309 | -11 | -206 |
Income before provision for income taxes | 14,906 | 12,532 | 21,508 | 15,552 |
Income tax provision | 5,626 | 5,909 | 8,414 | 6,263 |
Net income | 9,280 | 6,623 | 13,094 | 9,289 |
Earnings per share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.21 | $0.15 | $0.29 | $0.21 |
Diluted (in dollars per share) | $0.20 | $0.15 | $0.29 | $0.21 |
Common shares and equivalents outstanding | ' | ' | ' | ' |
Basic weighted average shares | 45,155,955 | 44,538,444 | 45,141,878 | 44,506,157 |
Diluted weighted average shares | 45,660,910 | 45,349,666 | 45,607,106 | 45,190,158 |
Dividends per share (in dollars per share) | $0.12 | $0.12 | $0.24 | $0.24 |
Other comprehensive (loss) income | ' | ' | ' | ' |
Foreign currency translation adjustment | -385 | -266 | 170 | 19 |
Unrealized (loss) gain on derivative instruments, net of tax | -394 | 429 | -82 | 548 |
Total other comprehensive (loss) income | -779 | 163 | 88 | 567 |
Comprehensive income | $8,501 | $6,786 | $13,182 | $9,856 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $13,094 | $9,289 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 21,194 | 21,576 |
Provision for doubtful accounts and sales returns | 2,966 | 1,246 |
Stock-based compensation expense | 8,044 | 9,895 |
Excess tax benefits from stock-based compensation | -2,067 | 0 |
Deferred taxes | 1,757 | 4,933 |
Impairment of capitalized software development costs due to business combination | 770 | 0 |
Amortization of deferred financing costs and discount | 343 | 306 |
Loss on debt extinguishment and termination of derivative instruments | 996 | 0 |
Other non-cash adjustments | 1,488 | 91 |
Changes in operating assets and liabilities, net of acquisition of businesses: | ' | ' |
Accounts receivable | -15,096 | -11,966 |
Prepaid expenses and other assets | 2,941 | 8,319 |
Trade accounts payable | -1,333 | -4,586 |
Accrued expenses and other liabilities | 4,419 | -9,731 |
Donor restricted cash | 62,609 | 41,505 |
Donations payable | -62,609 | -41,505 |
Deferred revenue | 5,588 | 8,100 |
Net cash provided by operating activities | 45,104 | 37,472 |
Cash flows from investing activities | ' | ' |
Purchase of property and equipment | -5,423 | -10,068 |
Purchase of net assets of acquired companies, net of cash acquired | -32,762 | -876 |
Payments for Capitalized Software Development | -3,831 | -1,643 |
Net cash used in investing activities | -42,016 | -12,587 |
Cash flows from financing activities | ' | ' |
Proceeds from issuance of debt | 201,000 | 27,900 |
Payments on debt | -180,002 | -47,900 |
Debt issuance costs | -2,484 | 0 |
Proceeds from exercise of stock options | 107 | 221 |
Excess tax benefits from stock-based compensation | 2,067 | 0 |
Dividend payments to stockholders | -11,081 | -10,959 |
Net cash provided by (used in) financing activities | 9,607 | -30,738 |
Effect of exchange rate on cash and cash equivalents | 263 | -338 |
Net increase (decrease) in cash and cash equivalents | 12,958 | -6,191 |
Cash and cash equivalents, beginning of period | 11,889 | 13,491 |
Cash and cash equivalents, end of period | $24,847 | $7,300 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2012 | $147,684 | $55 | $203,638 | ($170,898) | ($1,973) | $116,862 |
Balance, (in shares) at Dec. 31, 2012 | ' | 54,859,604 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 30,472 | ' | ' | ' | ' | 30,472 |
Payment of dividends | -22,081 | ' | ' | ' | ' | -22,081 |
Exercise of stock options and stock appreciation rights and vesting of restricted stock units (in shares) | ' | 609,500 | ' | ' | ' | ' |
Exercise of stock options and stock appreciation rights and vesting of restricted stock units | 385 | ' | 385 | ' | ' | ' |
Surrender of shares upon vesting of restricted stock and restricted stock units and exercise of stock appreciation rights | -12,390 | ' | ' | -12,390 | ' | ' |
Tax impact of exercise of equity-based compensation | -25 | ' | -25 | ' | ' | ' |
Stock-based compensation | 16,910 | ' | 16,765 | ' | ' | 145 |
Restricted stock grants | 1 | 1 | ' | ' | ' | ' |
Restricted stock grants (in shares) | ' | 458,462 | ' | ' | ' | ' |
Restricted stock cancellations (in shares) | ' | -227,749 | ' | ' | ' | ' |
Other comprehensive income (loss) | 588 | ' | ' | ' | 588 | ' |
Balance at Dec. 31, 2013 | 161,544 | 56 | 220,763 | -183,288 | -1,385 | 125,398 |
Balance, (in shares) at Dec. 31, 2013 | ' | 55,699,817 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 13,094 | ' | ' | ' | ' | 13,094 |
Payment of dividends | -11,081 | ' | ' | ' | ' | -11,081 |
Exercise of stock options and stock appreciation rights and vesting of restricted stock units (in shares) | ' | 72,781 | ' | ' | ' | ' |
Exercise of stock options and stock appreciation rights and vesting of restricted stock units | 107 | ' | 107 | ' | ' | ' |
Surrender of shares upon vesting of restricted stock and restricted stock units and exercise of stock appreciation rights | -885 | ' | ' | -885 | ' | ' |
Tax impact of exercise of equity-based compensation | 2,067 | ' | 2,067 | ' | ' | ' |
Stock-based compensation | 8,044 | ' | 8,007 | ' | ' | 37 |
Restricted stock grants | 0 | ' | ' | ' | ' | ' |
Restricted stock grants (in shares) | ' | 66,184 | ' | ' | ' | ' |
Restricted stock cancellations (in shares) | ' | -62,487 | ' | ' | ' | ' |
Other comprehensive income (loss) | 88 | ' | ' | ' | 88 | ' |
Balance at Jun. 30, 2014 | $172,978 | $56 | $230,944 | ($184,173) | ($1,297) | $127,448 |
Balance, (in shares) at Jun. 30, 2014 | ' | 55,776,295 | ' | ' | ' | ' |
Consolidated_Statements_Of_Sto1
Consolidated Statements Of Stockholders' Equity (Parenthetical) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' |
Surrender of shares upon vesting of restricted stock and restricted stock units and exercise of stock appreciation rights | 26,649 | 363,731 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization | ' |
Organization | |
We provide cloud-based and on-premise software solutions and related services designed specifically for nonprofit organizations. Our products and services enable nonprofit organizations to increase donations, reduce fundraising costs, improve communications with constituents, manage their finances and optimize internal operations. As of June 30, 2014, we had more than 30,000 active customers distributed across multiple verticals within the nonprofit market including education, foundations, health and human services, religion, arts and cultural, public and societal benefits, environment and animal welfare, as well as international affairs. |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Summary Of Significant Accounting Policies | ' | |
Summary of significant accounting policies | ||
Unaudited interim consolidated financial statements | ||
The accompanying interim consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial reporting. These consolidated statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to state fairly the consolidated balance sheets, consolidated statements of comprehensive income, consolidated statements of cash flows and consolidated statements of stockholders’ equity, for the periods presented in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated balance sheet at December 31, 2013, has been derived from the audited consolidated financial statements at that date. Operating results and cash flows for the six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014, or any other future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations for interim reporting of the SEC. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013, and other forms filed with the SEC from time to time. | ||
In order to provide comparability between periods presented, amortization of software development costs and amortization of deferred financing costs and discount have been separated from other non-cash adjustments in the previously reported consolidated statements of cash flows to conform to the consolidated statement of cash flow presentation of the current period. After this change in presentation, amounts related to the amortization of software development costs are included in depreciation and amortization and amounts related to the amortization of deferred financing costs and discount are presented separately within cash flows from operating activities. | ||
Basis of consolidation | ||
The consolidated financial statements include the accounts of Blackbaud, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Use of estimates | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we reconsider and evaluate our estimates and assumptions, including those that impact revenue recognition, long-lived and finite-lived intangible assets and goodwill, stock-based compensation, the provision for income taxes, capitalization of software development costs, our allowances for sales returns and doubtful accounts, deferred sales commissions and professional services costs, the valuation of derivative instruments, our accounting for business combinations and loss contingencies. Changes in the facts or circumstances underlying these estimates could result in material changes and actual results could materially differ from these estimates. | ||
Revenue recognition | ||
Our revenue is primarily generated from the following sources: (i) charging for the use of our software products in a hosted environment; (ii) providing software maintenance and support services; (iii) providing professional services including implementation, training, consulting, analytic, hosting and other services; and (iv) selling perpetual licenses of our software products. | ||
We recognize revenue when all of the following conditions are met: | ||
•Persuasive evidence of an arrangement exists; | ||
•The products or services have been delivered; | ||
•The fee is fixed or determinable; and | ||
•Collection of the resulting receivable is probable. | ||
Determining whether and when these criteria have been met can require significant judgment and estimates. We deem acceptance of an agreement to be evidence of an arrangement. Delivery of our services occurs when the services have been performed. Delivery of our products occurs when the product is shipped or transmitted, and title and risk of loss have transferred to the customers. Our typical agreements do not include customer acceptance provisions; however, if acceptance provisions are provided, delivery is deemed to occur upon acceptance. We consider the fee to be fixed or determinable unless the fee is subject to refund or adjustment or is not payable within our standard payment terms. Payment terms greater than 90 days are considered to be beyond our customary payment terms. Collection is deemed probable if we expect that the customer will be able to pay amounts under the arrangement as they become due. If we determine that collection is not probable, we defer revenue recognition until collection. Revenue is recognized net of sales returns and allowances. | ||
We follow guidance provided in ASC 605-45, Principal Agent Considerations, which states that determining whether a company should recognize revenue based on the gross amount billed to a customer or the net amount retained is a matter of judgment that depends on the facts and circumstances of the arrangement and that certain factors should be considered in the evaluation. | ||
Subscriptions | ||
We provide hosting services to customers who have purchased perpetual rights to certain of our software products (“hosting services”). Revenue from hosting services, as well as data enrichment services, data management services and online training programs, is recognized ratably beginning on the activation date over the term of the agreement, which generally ranges from one to three years. Any related set-up fees are recognized ratably over the estimated period that the customer benefits from the related hosting service. The estimated period of benefit is evaluated on an annual basis using historical customer retention information by product or service. | ||
We make certain of our software products available for use in hosted application arrangements without licensing perpetual rights to the software (“hosted applications”). Revenue from hosted applications is recognized ratably beginning on the activation date over the term of the agreement, which generally ranges from one to three years. Any revenue related to upfront activation or set-up fees is deferred and recognized ratably over the estimated period that the customer benefits from the related hosted application. Direct and incremental costs related to upfront activation or set-up activities for hosted applications are capitalized until the hosted application is deployed and in use, and then expensed ratably over the estimated period that the customer benefits from the related hosted application. | ||
For arrangements that have multiple elements and do not include software licenses, we allocate arrangement consideration at the inception of the arrangement to those elements that qualify as separate units of accounting. The arrangement consideration is allocated to the separate units of accounting based on relative selling price method in accordance with the selling price hierarchy, which includes: (i) vendor specific objective evidence (“VSOE”) of fair value if available; (ii) third-party evidence (“TPE”) if VSOE is not available; and (iii) best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. In general, we use VSOE to allocate the selling price to subscription and service deliverables. | ||
We offer certain payment processing services with the assistance of third-party vendors. In general, when we are the principal in a transaction based on the predominant weighting of factors identified in ASC 605-45, we record the revenue and related costs on a gross basis. Otherwise, we net the cost of revenue associated with the service against the gross amount billed to the customer and record the net amount as revenue. | ||
Revenue from transaction processing services is recognized when the service is provided and the amounts are determinable. Revenue directly associated with processing donations for customers are included in subscriptions revenue. | ||
License fees | ||
We sell perpetual software licenses with maintenance, varying levels of professional services and, in certain instances, with hosting services. We allocate revenue to each of the elements in these arrangements using the residual method under which we first allocate revenue to the undelivered elements, typically the non-software license components, based on VSOE of fair value of the various elements. We determine VSOE of fair value of the various elements using different methods. VSOE of fair value for maintenance services associated with software licenses is based upon renewal rates stated in the agreements with customers, which demonstrate a consistent relationship of maintenance pricing as a percentage of the contractual license fee. VSOE of fair value of professional services and other products and services is based on the average selling price of these same products and services to other customers when sold on a stand-alone basis. Any remaining revenue is allocated to the delivered elements, which is normally the software license in the arrangement. In general, revenue is recognized for software licenses upon delivery to our customers. | ||
When a software license is sold with software customization services, generally the services are to provide the customer assistance in creating special reports and other enhancements that will improve operational efficiency and/or help to support business process improvements. These services are generally not essential to the functionality of the software and the related revenues are recognized either as the services are delivered or upon completion. However, when software customization services are considered essential to the functionality of the software, we recognize revenue for both the software license and the services using the percentage-of-completion method. | ||
Services | ||
We generally bill consulting, installation and implementation services based on hourly rates plus reimbursable travel-related expenses. Revenue is recognized for these services over the period the services are delivered. | ||
We recognize analytic services revenue from donor prospect research engagements, the sale of lists of potential donors, benchmarking studies and data modeling service engagements upon delivery. In arrangements where we provide customers the right to updates to the lists during the contract period, revenue is recognized ratably over the contract period. | ||
We sell training at a fixed rate for each specific class at a per attendee price or at a packaged price for several attendees, and recognize the related revenue upon the customer attending and completing training. Additionally, we sell fixed-rate programs, which permit customers to attend unlimited training over a specified contract period, typically one year, subject to certain restrictions, and revenue in those cases is recognized ratably over the contract period. | ||
Maintenance | ||
We recognize revenue from maintenance services ratably over the contract term, typically one year. Maintenance contracts are at rates that vary according to the level of the maintenance program associated with the software product and are generally renewable annually. Maintenance contracts may also include the right to unspecified product upgrades on an if-and-when available basis. Certain support services are sold in prepaid units of time and recognized as revenue upon their usage. | ||
Deferred revenue | ||
To the extent that our customers are billed for the above described services in advance of delivery, we record such amounts in deferred revenue. | ||
Fair value measurements | ||
We measure certain financial assets and liabilities at fair value on a recurring basis, including derivative instruments. Fair value is defined as the exchange price that would be received upon purchase of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. We use a three-tier fair value hierarchy to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: | ||
• | Level 1 - Quoted prices for identical assets or liabilities in active markets; | |
• | Level 2 - Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |
• | Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable. | |
Our financial assets and liabilities are classified in their entirety within the hierarchy based on the lowest level of input that is significant to fair value measurement. Changes to a financial asset's or liability's level within the fair value hierarchy are determined as of the end of a reporting period. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized. | ||
Recently adopted accounting pronouncements | ||
Effective January 1, 2014, we adopted Accounting Standards Update (“ASU”) 2013-11, Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under ASU 2013-11, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of ASU 2013-11 did not have a material impact on our consolidated financial statements. | ||
Recently issued accounting pronouncements | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASU 2014-09 is effective for fiscal years and interim periods within those years beginning after December 15, 2016. Early adoption is not permitted. An entity should apply ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized as an adjustment to the opening balance of retained earnings at the date of initial application. We expect the adoption of ASU 2014-09 will impact our consolidated financial statements. We are currently evaluating implementation methods and the extent of the impact that implementation of this standard will have upon adoption. |
Business_Combinations
Business Combinations | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Business Combinations [Abstract] | ' | |||||
Business Combination Disclosure [Text Block] | ' | |||||
Business combinations | ||||||
WhippleHill | ||||||
On June 16, 2014, we acquired all of the outstanding stock of WhippleHill Communications, Inc. (“WhippleHill”), a privately held company based in New Hampshire, for $35.0 million in cash, subject to certain adjustments set forth in the stock purchase agreement. WhippleHill is a leading provider of cloud-based solutions designed exclusively to serve K12 private schools. The acquisition of WhippleHill expanded our offerings in the K12 technology sector. The operating results of WhippleHill which were insignificant to the periods presented have been included in our consolidated financial statements from the date of acquisition. Acquisition-related costs of $0.1 million, which primarily consisted of legal and financial advisory services, were expensed as incurred in general and administrative expense during the three and six months ended June 30, 2014. | ||||||
We recorded $19.0 million of finite-lived intangible assets, $12.3 million of goodwill ($11.8 million of which is deductible for income tax purposes) and $3.7 million of net tangible assets acquired and liabilities assumed associated with this acquisition based on our preliminary determination of estimated fair values. Included in net tangible assets acquired and liabilities assumed was $5.1 million of acquired accounts receivable, for which fair value was estimated to approximate the contractual value. The assets and liabilities recorded for the acquisition of WhippleHill were based on preliminary valuations and the estimates and assumptions are subject to change as we obtain additional information during the measurement period, which may be up to one year from the acquisition date. The estimated goodwill recognized is attributable primarily to the opportunities for expected synergies from combining operations and the assembled workforce of WhippleHill, all of which was assigned to our General Markets Business Unit reporting segment. | ||||||
The acquisition resulted in the identification of the following identifiable finite-lived intangible assets: | ||||||
Intangible assets acquired | Weighted average amortization period | |||||
(in thousands) | (in years) | |||||
Customer relationships | $ | 10,900 | 10 | |||
Acquired technology | 5,700 | 6 | ||||
Trade names | 2,300 | 8 | ||||
Non-compete agreements | 100 | 3 | ||||
$ | 19,000 | |||||
Customer relationships are being amortized on an accelerated basis. Acquired technology, trade names and non-compete agreements are being amortized on a straight-line basis. | ||||||
We determined that the WhippleHill acquisition was a non-material business combination. As such, pro forma disclosures are not required and are not presented. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings per share | ||||||||||||||||
We compute basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares and dilutive potential common shares outstanding during the period. Diluted earnings per share reflect the assumed exercise, settlement and vesting of all dilutive securities using the “treasury stock method” except when the effect is anti-dilutive. Potentially dilutive securities consist of shares issuable upon the exercise of stock options, settlement of stock appreciation rights and vesting of restricted stock awards and units. | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands, except share and per share amounts) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Numerator: | ||||||||||||||||
Net income, as reported | $ | 9,280 | $ | 6,623 | $ | 13,094 | $ | 9,289 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares | 45,155,955 | 44,538,444 | 45,141,878 | 44,506,157 | ||||||||||||
Add effect of dilutive securities: | ||||||||||||||||
Employee stock-based compensation | 504,955 | 811,222 | 465,228 | 684,001 | ||||||||||||
Weighted average common shares assuming dilution | 45,660,910 | 45,349,666 | 45,607,106 | 45,190,158 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.21 | $ | 0.15 | $ | 0.29 | $ | 0.21 | ||||||||
Diluted | $ | 0.2 | $ | 0.15 | $ | 0.29 | $ | 0.21 | ||||||||
The following shares underlying stock-based awards were not included in diluted earnings per share because their inclusion would have been anti-dilutive: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Shares excluded from calculations of diluted earnings per share | 330,095 | 54,222 | 336,745 | 105,339 | ||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair value measurements | |||||||||||||||||
Financial liabilities measured at fair value on a recurring basis consisted of the following, as of: | |||||||||||||||||
Fair value measurement using | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Fair value as of June 30, 2014 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||
Derivative instruments(1) | $ | — | $ | 553 | $ | — | $ | 553 | |||||||||
Total financial liabilities | $ | — | $ | 553 | $ | — | $ | 553 | |||||||||
Fair value as of December 31, 2013 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||
Derivative instruments(1) | $ | — | $ | 427 | $ | — | $ | 427 | |||||||||
Total financial liabilities | $ | — | $ | 427 | $ | — | $ | 427 | |||||||||
-1 | The fair value of our interest rate swaps was based on model-driven valuations using LIBOR rates, which are observable at commonly quoted intervals. Accordingly, our interest rate swaps are classified within Level 2 of the fair value hierarchy. | ||||||||||||||||
We believe the carrying amounts of our cash and cash equivalents, donor restricted cash, accounts receivable, trade accounts payable, accrued expenses and other current liabilities and donations payable approximate their fair values at June 30, 2014 and December 31, 2013, due to the immediate or short-term maturity of these instruments. | |||||||||||||||||
Financial assets and liabilities that are measured at fair value on a non-recurring basis include finite-lived intangible assets, goodwill and our debt. Intangible assets and goodwill are recognized at fair value in the period in which an acquisition is completed, or when they are considered to be impaired. We believe the carrying amount of our debt approximates its fair value at June 30, 2014 and December 31, 2013, as the debt bears interest rates that approximate market value. As LIBOR rates are observable at commonly quoted intervals, it is classified within Level 2 of the fair value hierarchy. There were no non-recurring fair value adjustments recorded during the six months ended June 30, 2014 or 2013, except for certain business combination accounting adjustments to the initial fair value estimates of the assets acquired and liabilities assumed at the acquisition date, from refinement during the measurement period. The measurement period for refinement may be up to one year from the acquisition date. We record adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||||||
Goodwill and other intangible assets | ||||||||||||||||||||||||
The change in goodwill for each reportable segment during the six months ended June 30, 2014, consisted of the following: | ||||||||||||||||||||||||
(in thousands) | ECBU | GMBU | IBU | Target Analytics | Other | Total | ||||||||||||||||||
Balance at December 31, 2013 | $ | 147,828 | $ | 74,956 | $ | 6,542 | $ | 33,177 | $ | 2,096 | $ | 264,599 | ||||||||||||
Additions related to business combinations | — | 12,320 | — | — | — | 12,320 | ||||||||||||||||||
Adjustments related to prior year business combinations | — | — | 140 | — | — | 140 | ||||||||||||||||||
Effect of foreign currency translation | — | — | 141 | — | — | 141 | ||||||||||||||||||
Balance at June 30, 2014 | $ | 147,828 | $ | 87,276 | $ | 6,823 | $ | 33,177 | $ | 2,096 | $ | 277,200 | ||||||||||||
Amortization expense | ||||||||||||||||||||||||
Amortization expense related to finite-lived intangible assets acquired in business combinations is allocated to cost of revenue and operating expenses on the consolidated statements of comprehensive income based on the revenue stream to which the asset contributes. The following table summarizes amortization expense: | ||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Included in cost of revenue: | ||||||||||||||||||||||||
Cost of license fees | $ | 87 | $ | 126 | $ | 174 | $ | 247 | ||||||||||||||||
Cost of subscriptions | 4,434 | 4,678 | 8,994 | 9,312 | ||||||||||||||||||||
Cost of services | 676 | 633 | 1,332 | 1,266 | ||||||||||||||||||||
Cost of maintenance | 115 | 114 | 230 | 228 | ||||||||||||||||||||
Cost of other revenue | 18 | 19 | 37 | 37 | ||||||||||||||||||||
Total included in cost of revenue | 5,330 | 5,570 | 10,767 | 11,090 | ||||||||||||||||||||
Included in operating expenses | 418 | 636 | 1,005 | 1,314 | ||||||||||||||||||||
Total | $ | 5,748 | $ | 6,206 | $ | 11,772 | $ | 12,404 | ||||||||||||||||
The following table outlines the estimated future amortization expense for each of the next five years for our finite-lived intangible assets as of June 30, 2014: | ||||||||||||||||||||||||
Year ending December 31, | Amortization | |||||||||||||||||||||||
(in thousands) | expense | |||||||||||||||||||||||
2014 - remaining | $ | 12,247 | ||||||||||||||||||||||
2015 | 24,867 | |||||||||||||||||||||||
2016 | 24,459 | |||||||||||||||||||||||
2017 | 22,121 | |||||||||||||||||||||||
2018 | 20,744 | |||||||||||||||||||||||
Total | $ | 104,438 | ||||||||||||||||||||||
Prepaid_Expenses_And_Other_Ass
Prepaid Expenses And Other Assets | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Prepaid Expenses And Other Assets | ' | |||||||
Prepaid expenses and other assets | ||||||||
Prepaid expenses and other assets consisted of the following as of: | ||||||||
(in thousands) | June 30, | December 31, | ||||||
2014 | 2013 | |||||||
Deferred sales commissions | $ | 20,144 | $ | 20,088 | ||||
Prepaid software maintenance | 5,024 | 6,875 | ||||||
Deferred professional services costs | 6,680 | 7,445 | ||||||
Software development costs | 5,942 | 4,172 | ||||||
Other assets | 11,149 | 10,786 | ||||||
Total prepaid expenses and other assets | 48,939 | 49,366 | ||||||
Less: Long-term portion | 20,668 | 19,251 | ||||||
Total prepaid expenses and other current assets | $ | 28,271 | $ | 30,115 | ||||
Accrued_Expenses_And_Other_Lia
Accrued Expenses And Other Liabilities | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accrued Expenses And Other Current Liabilities [Abstract] | ' | |||||||
Accrued Expenses And Other Liabilities | ' | |||||||
Accrued expenses and other liabilities | ||||||||
Accrued expenses and other liabilities consisted of the following as of: | ||||||||
(in thousands) | June 30, | December 31, | ||||||
2014 | 2013 | |||||||
Taxes payable | $ | 8,341 | $ | 5,430 | ||||
Accrued commissions and salaries | 6,160 | 7,127 | ||||||
Accrued bonuses | 9,532 | 9,258 | ||||||
Customer credit balances | 2,712 | 3,281 | ||||||
Unrecognized tax benefit | 4,089 | 3,698 | ||||||
Other liabilities | 22,320 | 18,304 | ||||||
Total accrued expenses and other liabilities | 53,154 | 47,098 | ||||||
Less: Long-term portion | 7,994 | 6,655 | ||||||
Total accrued expenses and other current liabilities | $ | 45,160 | $ | 40,443 | ||||
Deferred_Revenue
Deferred Revenue | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Deferred Revenue Disclosure [Abstract] | ' | |||||||
Deferred Revenue Disclosure | ' | |||||||
Deferred revenue | ||||||||
Deferred revenue consisted of the following as of: | ||||||||
(in thousands) | June 30, | December 31, | ||||||
2014 | 2013 | |||||||
Maintenance | $ | 86,146 | $ | 85,219 | ||||
Subscriptions | 80,651 | 72,480 | ||||||
Services | 31,858 | 32,153 | ||||||
License fees and other | 1,760 | 722 | ||||||
Total deferred revenue | 200,415 | 190,574 | ||||||
Less: Long-term portion | 10,187 | 9,099 | ||||||
Deferred revenue, current portion | $ | 190,228 | $ | 181,475 | ||||
Debt
Debt | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Debt | ' | |||||||||||||
Debt | ||||||||||||||
The following table summarizes our debt balances and the related weighted average effective interest rates, which includes the effect of interest rate swap agreements. | ||||||||||||||
Debt balance at | Weighted average effective interest rate at | |||||||||||||
(in thousands, except percentages) | June 30, | December 31, | June 30, | December 31, | ||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Credit facility: | ||||||||||||||
Revolving credit loans | $ | — | $ | 70,408 | — | % | 1.95 | % | ||||||
Term loans | 173,906 | 82,500 | 2.39 | % | 2.39 | % | ||||||||
Total debt | 173,906 | 152,908 | 2.39 | % | 2.14 | % | ||||||||
Less: Unamortized debt discount | 1,761 | — | ||||||||||||
Less: Debt, current portion | 4,375 | 17,158 | 1.74 | % | 2.39 | % | ||||||||
Debt, net of current portion | $ | 167,770 | $ | 135,750 | 2.41 | % | 2.11 | % | ||||||
We were previously party to a $325.0 million five-year credit facility entered into during February 2012. The credit facility included: a dollar and a designated currency revolving credit facility with sublimits for letters of credit and swingline loans (the “2012 Revolving Facility”) and a delayed draw term loan (the “2012 Term Loan”)(together, the “2012 Credit Facility”). | ||||||||||||||
2014 Refinancing | ||||||||||||||
In February 2014, we entered into a five-year $325.0 million credit facility (the “2014 Credit Facility”) and drew $175.0 million on a term loan upon closing, which was used to repay all amounts outstanding under the 2012 Credit Facility. | ||||||||||||||
The 2014 Credit Facility includes the following facilities: (i) a dollar and a designated currency revolving credit facility with sublimits for letters of credit and swingline loans (the “2014 Revolving Facility”) and (ii) a term loan facility (the “2014 Term Loan”). | ||||||||||||||
Certain investors of the 2012 Term Loan reinvested in the 2014 Term Loan and the change in the present value of our future cash flows to these investors under the 2012 Term Loan and under the 2014 Term Loan was less than 10%. Accordingly, we accounted for the refinancing event for these investors as a debt modification. Certain investors of the 2012 Term Loan did not invest in the 2014 Term Loan. Accordingly, we accounted for the refinancing event for these investors as a debt extinguishment. Certain investors of the 2012 Revolving Facility reinvested in the 2014 Revolving Facility and provided increased borrowing capacities. Accordingly, we accounted for the refinancing event for these investors as a debt modification. Certain investors of the 2012 Revolving Facility did not invest in the 2014 Revolving Facility. Accordingly, we accounted for the refinancing event for these investors as a debt extinguishment. | ||||||||||||||
We recorded a $0.4 million loss on debt extinguishment related to the write-off of deferred financing costs for the portions of the 2012 Credit Facility considered to be extinguished. This loss was recognized in the consolidated statements of comprehensive income within loss on debt extinguishment and termination of derivative instruments. | ||||||||||||||
In connection with our entry into the 2014 Credit Facility we paid $2.5 million in financing costs, of which $1.1 million were capitalized and, together with a portion of the unamortized deferred financing costs from the 2012 Credit Facility and prior facilities, are being amortized into interest expense over the term of the new facility using the effective interest method. As of June 30, 2014 and December 31, 2013, deferred financing costs totaling $1.6 million and $1.9 million, respectively, were included in other assets on the consolidated balance sheet. | ||||||||||||||
Summary of the 2014 Credit Facility | ||||||||||||||
The 2014 Credit Facility is secured by the stock and limited liability company interests of certain of our subsidiaries and is guaranteed by our material domestic subsidiaries. | ||||||||||||||
Amounts borrowed under the dollar tranche revolving credit loans and term loan under the 2014 Credit Facility bear interest at a rate per annum equal to, at our option, (a) a base rate equal to the highest of (i) the prime rate, (ii) federal funds rate plus 0.50% and (iii) one month LIBOR plus 1.00% (the “Base Rate”), in addition to a margin of 0.00% to 0.50%, or (b) LIBOR rate plus a margin of 1.00% to 1.50%. Swingline loans bear interest at a rate per annum equal to the Base Rate plus a margin of 0.00% to 0.50% or such other rate agreed to between the Swingline lender and us. Designated currency tranche revolving credit loans bear interest at a rate per annum equal to the LIBOR rate for the applicable currency plus a margin of 1.00% to 1.50%. The exact amount of any margin depends on the nature of the loan (Base Rate or LIBOR) and our net leverage ratio (as defined in the 2014 Credit Facility). | ||||||||||||||
We also pay a quarterly commitment fee on the unused portion of the 2014 Revolving Facility from 0.15% to 0.225% per annum, depending on our net leverage ratio. At June 30, 2014, the commitment fee was 0.225%. | ||||||||||||||
The term loan under the 2014 Credit Facility requires periodic principal payments. The balance of the term loan and any amounts drawn on the revolving credit loans are due upon maturity of the 2014 Credit Facility in February 2019. We evaluate the classification of our debt as current or non-current based on the required annual maturities of the 2014 Credit Facility. | ||||||||||||||
The 2014 Credit Facility includes financial covenants related to the net leverage ratio and interest coverage ratio, as well as restrictions on our ability to declare and pay dividends and our ability to repurchase shares of our common stock. At June 30, 2014, we were in compliance with our debt covenants under the 2014 Credit Facility. | ||||||||||||||
As of June 30, 2014, the required annual maturities related to our 2014 Credit Facility were as follows: | ||||||||||||||
Year ending December 31, | Annual maturities | |||||||||||||
(in thousands) | ||||||||||||||
2014 - remaining | $ | 2,188 | ||||||||||||
2015 | 4,375 | |||||||||||||
2016 | 4,375 | |||||||||||||
2017 | 4,375 | |||||||||||||
2018 | 4,375 | |||||||||||||
Thereafter | 154,218 | |||||||||||||
Total required maturities | $ | 173,906 | ||||||||||||
Derivative_Instruments
Derivative Instruments | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Derivatives Instruments | ' | |||||||||||||
Derivative instruments | ||||||||||||||
We use derivative instruments to manage interest rate risk. In February 2014, in connection with the refinancing of our debt, we terminated the two interest rate swap agreements associated with the 2012 Credit Facility. As part of the settlement of our swap liability, we recorded a loss of $0.6 million, which was recognized in the consolidated statements of comprehensive income within loss on debt extinguishment and termination of derivative instruments and resulted in a recognized tax benefit of $0.2 million. | ||||||||||||||
In March 2014, we entered into a new interest rate swap agreement, which effectively converts portions of our variable rate debt under the 2014 Credit Facility to a fixed rate for the term of the swap agreement. The initial notional value of the new swap agreement was $125.0 million with an effective date beginning in March 2014. In March 2017, the notional value of the swap agreement will decrease to $75.0 million for the remaining term through February 2018. We designated the swap agreement as a cash flow hedge at the inception of the contract. | ||||||||||||||
The fair values of our derivative instruments were as follows as of: | ||||||||||||||
(in thousands) | Balance sheet location | June 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||||
Derivative instruments designated as hedging instruments: | ||||||||||||||
Interest rate swaps, current portion | Accrued expenses and other current liabilities | $ | — | $ | 46 | |||||||||
Interest rate swaps, long-term portion | Other liabilities | 553 | 381 | |||||||||||
Total derivative instruments designated as hedging instruments | $ | 553 | $ | 427 | ||||||||||
The effects of derivative instruments in cash flow hedging relationships were as follows: | ||||||||||||||
Gain (loss) recognized in accumulated other comprehensive loss as of | Location of loss reclassified from accumulated other comprehensive loss into income | Gain (loss) reclassified from accumulated other comprehensive loss into income | ||||||||||||
30-Jun-14 | Three months ended June 30, | Six months ended June 30, | ||||||||||||
(in thousands) | 2014 | 2014 | ||||||||||||
Interest rate swaps | $ | (553 | ) | Interest expense | $ | (316 | ) | $ | (530 | ) | ||||
Interest rate swaps | — | Loss on debt extinguishment and termination of derivative instruments | — | (587 | ) | |||||||||
Total | $ | (553 | ) | $ | (316 | ) | $ | (1,117 | ) | |||||
30-Jun-13 | Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2013 | |||||||||||||
Interest rate swaps | $ | (399 | ) | Interest expense | $ | (199 | ) | $ | (389 | ) | ||||
Our policy requires that derivatives used for hedging purposes be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accumulated other comprehensive income (loss) includes unrealized gains or losses from the change in fair value measurement of our derivative instruments each reporting period and the related income tax expense or benefit. Changes in the fair value measurements of the derivative instruments and the related income tax expense or benefit are reflected as adjustments to accumulated other comprehensive income (loss) until the actual hedged expense is incurred or until the hedge is terminated at which point the unrealized gain (loss) is reclassified from accumulated other comprehensive income (loss) to current earnings. There was no ineffective portion of our interest rate swap derivatives during the three and six months ended June 30, 2014 and 2013. See Note 15 for a summary of other changes in accumulated other comprehensive income (loss) by component. |
Commitments_And_Contingencies
Commitments And Contingencies | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments And Contingencies | ' | |||
Commitments and contingencies | ||||
Leases | ||||
We lease our headquarters facility under a 15-year lease agreement which was entered into in October 2008, and has two five-year renewal options. The current annual base rent of the lease is $4.0 million, payable in equal monthly installments. The base rent escalates annually at a rate equal to the change in the consumer price index, as defined in the agreement, but not to exceed 5.5% in any year. | ||||
With our acquisition of Convio, we assumed a lease for office space in Austin, Texas which terminates on September 30, 2023, and has two five-year renewal options. Under the terms of the lease, we will increase our leased space by approximately 20,000 square feet on July 31, 2016. The current annual base rent of the lease is $2.2 million. The base rent escalates annually between 2% and 4% based on the terms of the agreement. The rent expense is recorded on a straight-line basis over the length of the lease term. At June 30, 2014, we had a standby letter of credit of $2.0 million for a security deposit for this lease. | ||||
We have provisions in our leases that entitle us to aggregate leasehold improvement allowances of $9.5 million. These amounts are being recorded as a reduction to rent expense ratably over the terms of the leases. Rent expense was reduced related to these lease provisions by $0.2 million and $0.3 million during both the three and six months ended June 30, 2014 and 2013, respectively. The leasehold improvement allowances have been included in the table of operating lease commitments below as a reduction in our lease commitments ratably over the then remaining terms of the leases. The timing of the reimbursements for the actual leasehold improvements may vary from the amounts reflected in the table below. | ||||
We have also received, and expect to receive through 2016, quarterly South Carolina state incentive payments as a result of locating our headquarters facility in Berkeley County, South Carolina. These amounts are recorded as a reduction of rent expense upon receipt and were $0.6 million and $0.3 million for the three months ended June 30, 2014 and 2013, respectively, and $1.2 million and $1.0 million for the six months ended June 30, 2014 and 2013, respectively. | ||||
Total rent expense was $2.3 million and $2.4 million for the three months ended June 30, 2014 and 2013, respectively, and $4.5 million for the six months ended June 30, 2014 and 2013. | ||||
As of June 30, 2014, the future minimum lease commitments related to lease agreements, net of related lease incentives, were as follows: | ||||
Year ending December 31, | Operating | |||
(in thousands) | leases | |||
2014 – remaining | $ | 5,475 | ||
2015 | 10,495 | |||
2016 | 9,896 | |||
2017 | 10,167 | |||
2018 | 10,373 | |||
Thereafter | 44,287 | |||
Total minimum lease payments | $ | 90,693 | ||
Other commitments | ||||
As discussed in Note 10 of these consolidated financial statements, the term loans under our credit facility require periodic principal payments. The balance of the term loans and any amounts drawn on the revolving credit loans are due upon maturity of the credit facility in February 2019. | ||||
We utilize third-party technology in conjunction with our products and services, with contractual arrangements varying in length from one to five years. In certain cases, these arrangements require a minimum annual purchase commitment. As of June 30, 2014, the remaining aggregate minimum purchase commitment under these arrangements was approximately $15.1 million through 2018. We incurred expense under these arrangements of $1.7 million and $3.3 million for the three and six months ended June 30, 2014, respectively. | ||||
Legal contingencies | ||||
We are subject to legal proceedings and claims that arise in the ordinary course of business. We record an accrual for a contingency when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We do not believe the amount of potential liability with respect to these actions will have a material adverse effect upon our consolidated financial position, results of operations or cash flows. |
Income_Taxes
Income Taxes | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income taxes | ||||||||||||
Our effective income tax rates including the effects of period-specific events, were: | ||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Effective tax rate | 37.7 | % | 47.2 | % | 39.1 | % | 40.3 | % | ||||
The decrease in our effective income tax rate during the three months ended June 30, 2014 when compared to the same period in 2013 was primarily due to a reduction in operating losses of foreign jurisdictions for which we have determined that a related valuation allowance is appropriate. | ||||||||||||
The decrease in our effective income tax rate during the six months ended June 30, 2014 when compared to the same period in 2013 was primarily due to a reduction in operating losses of foreign jurisdictions for which we have determined that a related valuation allowance is appropriate, partially offset by a decrease in the benefit from research and development credits. The federal and state research and development tax credits, which had previously expired on December 31, 2011, were reinstated as part of the American Taxpayer Relief Act of 2012 enacted in January 2013. This legislation retroactively reinstated and extended the credits from the previous expiration date through December 31, 2013, resulting in a discrete tax benefit attributable to 2012 research and development tax credits of $1.9 million which is included in the six months ended June 30, 2013. No similar legislation providing an extension for prior period credits was in effect during the six months ended June 30, 2014. Our effective income tax rate may fluctuate quarterly as a result of factors, including transactions entered into, changes in the geographic distribution of our earnings or losses, our assessment of certain tax contingencies, valuation allowances, and changes in tax law in jurisdictions where we conduct business. | ||||||||||||
We have deferred tax assets for federal, state, and international net operating loss carryforwards and state tax credits. The federal and state net operating loss carryforwards are subject to various Internal Revenue Code limitations and applicable state tax laws. A portion of the foreign and state net operating loss carryforwards and a portion of state tax credits have a valuation reserve due to the uncertainty of realizing such carryforwards and credits in the future. | ||||||||||||
The total amount of unrecognized tax benefit that, if recognized, would favorably affect the effective income tax rate, was $3.6 million and $3.7 million at June 30, 2014 and December 31, 2013, respectively. We recognize accrued interest and penalties, if any, related to unrecognized tax benefits as a component of income tax expense. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
Stock-based compensation | ||||||||||||||||
Stock-based compensation expense is allocated to cost of revenue and operating expenses on the consolidated statements of comprehensive income based on where the associated employee’s compensation is recorded. The following table summarizes stock-based compensation expense: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Included in cost of revenue: | ||||||||||||||||
Cost of subscriptions | $ | 175 | $ | 189 | $ | 364 | $ | 415 | ||||||||
Cost of services | 582 | 593 | 1,124 | 1,436 | ||||||||||||
Cost of maintenance | 196 | 194 | 341 | 256 | ||||||||||||
Total included in cost of revenue | 953 | 976 | 1,829 | 2,107 | ||||||||||||
Included in operating expenses: | ||||||||||||||||
Sales and marketing | 588 | 545 | 1,059 | 1,243 | ||||||||||||
Research and development | 762 | 1,062 | 1,424 | 2,215 | ||||||||||||
General and administrative | 2,027 | 2,134 | 3,732 | 4,330 | ||||||||||||
Total included in operating expenses | 3,377 | 3,741 | 6,215 | 7,788 | ||||||||||||
Total | $ | 4,330 | $ | 4,717 | $ | 8,044 | $ | 9,895 | ||||||||
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Stockholders' Equity | ' | |||||||||||||||
Stockholders’ equity | ||||||||||||||||
Dividends | ||||||||||||||||
In February 2014, our Board of Directors approved an annual dividend rate of $0.48 per share to be made in quarterly payments. Dividend payments are not guaranteed and our Board of Directors may decide, in its absolute discretion, at any time and for any reason, not to declare or pay further dividends. The following table provides information with respect to quarterly dividends of $0.12 per share paid on common stock during the six months ended June 30, 2014. | ||||||||||||||||
Declaration Date | Dividend per Share | Record Date | Payable Date | |||||||||||||
Feb-14 | $ | 0.12 | February 28 | March 14 | ||||||||||||
Apr-14 | $ | 0.12 | May 28 | June 13 | ||||||||||||
In July 2014, our Board of Directors declared a third quarter dividend of $0.12 per share payable on September 15, 2014 to stockholders of record on August 28, 2014. | ||||||||||||||||
Changes in accumulated other comprehensive loss by component | ||||||||||||||||
The changes in accumulated other comprehensive loss by component, consisted of the following: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Accumulated other comprehensive loss, beginning of period | $ | (518 | ) | $ | (1,569 | ) | $ | (1,385 | ) | $ | (1,973 | ) | ||||
By component: | ||||||||||||||||
Gains and losses on cash flow hedges: | ||||||||||||||||
Accumulated other comprehensive income (loss) balance, beginning of period | $ | 56 | $ | (672 | ) | $ | (256 | ) | $ | (791 | ) | |||||
Other comprehensive (loss) income before reclassifications, net of tax effects of $375, $(196), $488 and $(198) | (586 | ) | 307 | (755 | ) | 310 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss to interest expense | 316 | 199 | 530 | 389 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss to loss on debt extinguishment and termination of derivative instruments | — | — | 587 | — | ||||||||||||
Tax benefit included in provision for income taxes | (124 | ) | (77 | ) | (444 | ) | (151 | ) | ||||||||
Total amounts reclassified from accumulated other comprehensive loss | 192 | 122 | 673 | 238 | ||||||||||||
Net current-period other comprehensive (loss) income | (394 | ) | 429 | (82 | ) | 548 | ||||||||||
Accumulated other comprehensive loss balance, end of period | $ | (338 | ) | $ | (243 | ) | $ | (338 | ) | $ | (243 | ) | ||||
Foreign currency translation adjustment: | ||||||||||||||||
Accumulated other comprehensive loss balance, beginning of period | $ | (574 | ) | $ | (897 | ) | $ | (1,129 | ) | $ | (1,182 | ) | ||||
Translation adjustments | (385 | ) | (266 | ) | 170 | 19 | ||||||||||
Accumulated other comprehensive loss balance, end of period | (959 | ) | (1,163 | ) | (959 | ) | (1,163 | ) | ||||||||
Accumulated other comprehensive loss, end of period | $ | (1,297 | ) | $ | (1,406 | ) | $ | (1,297 | ) | $ | (1,406 | ) |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment information | ||||||||||||||||
As of June 30, 2014, our reportable segments were the Enterprise Customer Business Unit (the “ECBU”), the General Markets Business Unit, (the “GMBU”), the International Business Unit (the “IBU”), and Target Analytics. Following is a description of each reportable segment: | ||||||||||||||||
• | The ECBU is focused on marketing, sales, delivery and support to all large and/or strategic prospects and customers in North America; | |||||||||||||||
• | The GMBU is focused on marketing, sales, delivery and support to all emerging and mid-sized prospects and customers in North America; | |||||||||||||||
• | The IBU is focused on marketing, sales, delivery and support to all prospects and customers outside of North America; and | |||||||||||||||
• | Target Analytics is focused on marketing, sales and delivery of analytic services to all prospects and customers globally. | |||||||||||||||
Our chief operating decision maker is our chief executive officer, or CEO. The CEO reviews financial information presented on an operating segment basis for the purposes of making certain operating decisions and assessing financial performance. The CEO uses internal financial reports that provide segment revenues and operating income, excluding stock-based compensation expense, amortization expense, depreciation expense, research and development expense and certain corporate sales, marketing, general and administrative expenses. Currently, the CEO believes that the exclusion of these costs allows for a better understanding of the operating performance of the operating units and management of other operating expenses and cash needs. The CEO does not review any segment balance sheet information. | ||||||||||||||||
Summarized reportable segment financial results, were as follows: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue by segment: | ||||||||||||||||
ECBU | $ | 54,373 | $ | 49,275 | $ | 104,239 | $ | 93,954 | ||||||||
GMBU | 63,194 | 55,924 | 120,849 | 108,942 | ||||||||||||
IBU | 12,126 | 10,788 | 22,764 | 20,026 | ||||||||||||
Target Analytics | 9,657 | 9,458 | 19,095 | 18,126 | ||||||||||||
Other(1) | 38 | 23 | 63 | 43 | ||||||||||||
Total revenue | $ | 139,388 | $ | 125,468 | $ | 267,010 | $ | 241,091 | ||||||||
Segment operating income(2): | ||||||||||||||||
ECBU | $ | 36,357 | $ | 26,496 | $ | 68,458 | $ | 50,138 | ||||||||
GMBU | 41,968 | 33,371 | 80,874 | 65,546 | ||||||||||||
IBU | 1,752 | 2,614 | 3,173 | 3,238 | ||||||||||||
Target Analytics | 5,517 | 3,735 | 9,820 | 6,911 | ||||||||||||
Other(1) | 965 | 80 | 2,012 | 291 | ||||||||||||
86,559 | 66,296 | 164,337 | 126,124 | |||||||||||||
Less: | ||||||||||||||||
Corporate unallocated costs(3) | 60,485 | 41,055 | 119,248 | 84,913 | ||||||||||||
Stock-based compensation costs | 4,330 | 4,717 | 8,044 | 9,895 | ||||||||||||
Amortization expense | 5,748 | 6,206 | 11,772 | 12,404 | ||||||||||||
Interest expense, net | 1,315 | 1,477 | 2,758 | 3,154 | ||||||||||||
Loss on debt extinguishment and termination of derivative instruments | — | — | 996 | — | ||||||||||||
Other expense (income), net | (225 | ) | 309 | 11 | 206 | |||||||||||
Income before provision for income taxes | $ | 14,906 | $ | 12,532 | $ | 21,508 | $ | 15,552 | ||||||||
-1 | Other includes revenue and the related costs from the sale of products and services not directly attributable to an operating segment. | |||||||||||||||
-2 | Segment operating income includes direct, controllable costs related to the sale of products and services by the reportable segment. | |||||||||||||||
-3 | Corporate unallocated costs include research and development, depreciation expense, and certain corporate sales, marketing, general and administrative expenses. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2014 | |
Restructuring and Related Activities [Abstract] | ' |
Restructuring | ' |
Restructuring | |
During 2012, in an effort to consolidate our operating locations, we decided not to renew our lease for office space in San Diego, CA, which matured on June 30, 2013. As a result, we initiated a plan to transition most of our operations based in San Diego, CA to our Austin, TX location, which we substantially completed in June 2013 when the lease matured. We incurred $0.1 million and $0.2 million in before-tax restructuring charges related to our San Diego office transition during the three and six months ended June 30, 2013, respectfully. | |
In January 2013, we implemented a realignment of our workforce in response to changes in the nonprofit industry and global economy. The realignment included a reduction in workforce of approximately 135 positions. The cost associated with this realignment was substantially incurred during the first nine months of 2013. We incurred $3.2 million in before-tax restructuring charges related to the realignment of our workforce during the six months ended June 30, 2013. The charges incurred during the three months ended June 30, 2013 were insignificant. |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Unaudited interim consolidated financial statements | ' | |
Unaudited interim consolidated financial statements | ||
The accompanying interim consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial reporting. These consolidated statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to state fairly the consolidated balance sheets, consolidated statements of comprehensive income, consolidated statements of cash flows and consolidated statements of stockholders’ equity, for the periods presented in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated balance sheet at December 31, 2013, has been derived from the audited consolidated financial statements at that date. Operating results and cash flows for the six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014, or any other future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations for interim reporting of the SEC. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013, and other forms filed with the SEC from time to time. | ||
Basis of consolidation | ' | |
Basis of consolidation | ||
The consolidated financial statements include the accounts of Blackbaud, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Use of estimates | ' | |
Use of estimates | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we reconsider and evaluate our estimates and assumptions, including those that impact revenue recognition, long-lived and finite-lived intangible assets and goodwill, stock-based compensation, the provision for income taxes, capitalization of software development costs, our allowances for sales returns and doubtful accounts, deferred sales commissions and professional services costs, the valuation of derivative instruments, our accounting for business combinations and loss contingencies. Changes in the facts or circumstances underlying these estimates could result in material changes and actual results could materially differ from these estimates. | ||
Revenue recognition | ' | |
Revenue recognition | ||
Our revenue is primarily generated from the following sources: (i) charging for the use of our software products in a hosted environment; (ii) providing software maintenance and support services; (iii) providing professional services including implementation, training, consulting, analytic, hosting and other services; and (iv) selling perpetual licenses of our software products. | ||
We recognize revenue when all of the following conditions are met: | ||
•Persuasive evidence of an arrangement exists; | ||
•The products or services have been delivered; | ||
•The fee is fixed or determinable; and | ||
•Collection of the resulting receivable is probable. | ||
Determining whether and when these criteria have been met can require significant judgment and estimates. We deem acceptance of an agreement to be evidence of an arrangement. Delivery of our services occurs when the services have been performed. Delivery of our products occurs when the product is shipped or transmitted, and title and risk of loss have transferred to the customers. Our typical agreements do not include customer acceptance provisions; however, if acceptance provisions are provided, delivery is deemed to occur upon acceptance. We consider the fee to be fixed or determinable unless the fee is subject to refund or adjustment or is not payable within our standard payment terms. Payment terms greater than 90 days are considered to be beyond our customary payment terms. Collection is deemed probable if we expect that the customer will be able to pay amounts under the arrangement as they become due. If we determine that collection is not probable, we defer revenue recognition until collection. Revenue is recognized net of sales returns and allowances. | ||
We follow guidance provided in ASC 605-45, Principal Agent Considerations, which states that determining whether a company should recognize revenue based on the gross amount billed to a customer or the net amount retained is a matter of judgment that depends on the facts and circumstances of the arrangement and that certain factors should be considered in the evaluation. | ||
Subscriptions | ||
We provide hosting services to customers who have purchased perpetual rights to certain of our software products (“hosting services”). Revenue from hosting services, as well as data enrichment services, data management services and online training programs, is recognized ratably beginning on the activation date over the term of the agreement, which generally ranges from one to three years. Any related set-up fees are recognized ratably over the estimated period that the customer benefits from the related hosting service. The estimated period of benefit is evaluated on an annual basis using historical customer retention information by product or service. | ||
We make certain of our software products available for use in hosted application arrangements without licensing perpetual rights to the software (“hosted applications”). Revenue from hosted applications is recognized ratably beginning on the activation date over the term of the agreement, which generally ranges from one to three years. Any revenue related to upfront activation or set-up fees is deferred and recognized ratably over the estimated period that the customer benefits from the related hosted application. Direct and incremental costs related to upfront activation or set-up activities for hosted applications are capitalized until the hosted application is deployed and in use, and then expensed ratably over the estimated period that the customer benefits from the related hosted application. | ||
For arrangements that have multiple elements and do not include software licenses, we allocate arrangement consideration at the inception of the arrangement to those elements that qualify as separate units of accounting. The arrangement consideration is allocated to the separate units of accounting based on relative selling price method in accordance with the selling price hierarchy, which includes: (i) vendor specific objective evidence (“VSOE”) of fair value if available; (ii) third-party evidence (“TPE”) if VSOE is not available; and (iii) best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. In general, we use VSOE to allocate the selling price to subscription and service deliverables. | ||
We offer certain payment processing services with the assistance of third-party vendors. In general, when we are the principal in a transaction based on the predominant weighting of factors identified in ASC 605-45, we record the revenue and related costs on a gross basis. Otherwise, we net the cost of revenue associated with the service against the gross amount billed to the customer and record the net amount as revenue. | ||
Revenue from transaction processing services is recognized when the service is provided and the amounts are determinable. Revenue directly associated with processing donations for customers are included in subscriptions revenue. | ||
License fees | ||
We sell perpetual software licenses with maintenance, varying levels of professional services and, in certain instances, with hosting services. We allocate revenue to each of the elements in these arrangements using the residual method under which we first allocate revenue to the undelivered elements, typically the non-software license components, based on VSOE of fair value of the various elements. We determine VSOE of fair value of the various elements using different methods. VSOE of fair value for maintenance services associated with software licenses is based upon renewal rates stated in the agreements with customers, which demonstrate a consistent relationship of maintenance pricing as a percentage of the contractual license fee. VSOE of fair value of professional services and other products and services is based on the average selling price of these same products and services to other customers when sold on a stand-alone basis. Any remaining revenue is allocated to the delivered elements, which is normally the software license in the arrangement. In general, revenue is recognized for software licenses upon delivery to our customers. | ||
When a software license is sold with software customization services, generally the services are to provide the customer assistance in creating special reports and other enhancements that will improve operational efficiency and/or help to support business process improvements. These services are generally not essential to the functionality of the software and the related revenues are recognized either as the services are delivered or upon completion. However, when software customization services are considered essential to the functionality of the software, we recognize revenue for both the software license and the services using the percentage-of-completion method. | ||
Services | ||
We generally bill consulting, installation and implementation services based on hourly rates plus reimbursable travel-related expenses. Revenue is recognized for these services over the period the services are delivered. | ||
We recognize analytic services revenue from donor prospect research engagements, the sale of lists of potential donors, benchmarking studies and data modeling service engagements upon delivery. In arrangements where we provide customers the right to updates to the lists during the contract period, revenue is recognized ratably over the contract period. | ||
We sell training at a fixed rate for each specific class at a per attendee price or at a packaged price for several attendees, and recognize the related revenue upon the customer attending and completing training. Additionally, we sell fixed-rate programs, which permit customers to attend unlimited training over a specified contract period, typically one year, subject to certain restrictions, and revenue in those cases is recognized ratably over the contract period. | ||
Maintenance | ||
We recognize revenue from maintenance services ratably over the contract term, typically one year. Maintenance contracts are at rates that vary according to the level of the maintenance program associated with the software product and are generally renewable annually. Maintenance contracts may also include the right to unspecified product upgrades on an if-and-when available basis. Certain support services are sold in prepaid units of time and recognized as revenue upon their usage. | ||
Deferred revenue | ||
To the extent that our customers are billed for the above described services in advance of delivery, we record such amounts in deferred revenue. | ||
Fair value measurements | ' | |
Fair value measurements | ||
We measure certain financial assets and liabilities at fair value on a recurring basis, including derivative instruments. Fair value is defined as the exchange price that would be received upon purchase of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. We use a three-tier fair value hierarchy to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: | ||
• | Level 1 - Quoted prices for identical assets or liabilities in active markets; | |
• | Level 2 - Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |
• | Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable. | |
Our financial assets and liabilities are classified in their entirety within the hierarchy based on the lowest level of input that is significant to fair value measurement. Changes to a financial asset's or liability's level within the fair value hierarchy are determined as of the end of a reporting period. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized. | ||
New accounting pronouncements adopted | ' | |
Recently adopted accounting pronouncements | ||
Effective January 1, 2014, we adopted Accounting Standards Update (“ASU”) 2013-11, Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under ASU 2013-11, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of ASU 2013-11 did not have a material impact on our consolidated financial statements. | ||
New accounting pronouncements not yet adopted | ' | |
Recently issued accounting pronouncements | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASU 2014-09 is effective for fiscal years and interim periods within those years beginning after December 15, 2016. Early adoption is not permitted. An entity should apply ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized as an adjustment to the opening balance of retained earnings at the date of initial application. We expect the adoption of ASU 2014-09 will impact our consolidated financial statements. We are currently evaluating implementation methods and the extent of the impact that implementation of this standard will have upon adoption. | ||
Legal contingencies | ' | |
Legal contingencies | ||
We are subject to legal proceedings and claims that arise in the ordinary course of business. We record an accrual for a contingency when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. |
Business_Combinations_Tables
Business Combinations (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Business Combinations [Abstract] | ' | |||||
Acquired intangible assets | ' | |||||
The acquisition resulted in the identification of the following identifiable finite-lived intangible assets: | ||||||
Intangible assets acquired | Weighted average amortization period | |||||
(in thousands) | (in years) | |||||
Customer relationships | $ | 10,900 | 10 | |||
Acquired technology | 5,700 | 6 | ||||
Trade names | 2,300 | 8 | ||||
Non-compete agreements | 100 | 3 | ||||
$ | 19,000 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation Of Basic And Diluted Earnings Per Share | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands, except share and per share amounts) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Numerator: | ||||||||||||||||
Net income, as reported | $ | 9,280 | $ | 6,623 | $ | 13,094 | $ | 9,289 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares | 45,155,955 | 44,538,444 | 45,141,878 | 44,506,157 | ||||||||||||
Add effect of dilutive securities: | ||||||||||||||||
Employee stock-based compensation | 504,955 | 811,222 | 465,228 | 684,001 | ||||||||||||
Weighted average common shares assuming dilution | 45,660,910 | 45,349,666 | 45,607,106 | 45,190,158 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.21 | $ | 0.15 | $ | 0.29 | $ | 0.21 | ||||||||
Diluted | $ | 0.2 | $ | 0.15 | $ | 0.29 | $ | 0.21 | ||||||||
Anti-Dilutive Securities | ' | |||||||||||||||
The following shares underlying stock-based awards were not included in diluted earnings per share because their inclusion would have been anti-dilutive: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Shares excluded from calculations of diluted earnings per share | 330,095 | 54,222 | 336,745 | 105,339 | ||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
Financial liabilities measured at fair value on a recurring basis consisted of the following, as of: | |||||||||||||||||
Fair value measurement using | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Fair value as of June 30, 2014 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||
Derivative instruments(1) | $ | — | $ | 553 | $ | — | $ | 553 | |||||||||
Total financial liabilities | $ | — | $ | 553 | $ | — | $ | 553 | |||||||||
Fair value as of December 31, 2013 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||
Derivative instruments(1) | $ | — | $ | 427 | $ | — | $ | 427 | |||||||||
Total financial liabilities | $ | — | $ | 427 | $ | — | $ | 427 | |||||||||
-1 | The fair value of our interest rate swaps was based on model-driven valuations using LIBOR rates, which are observable at commonly quoted intervals. Accordingly, our interest rate swaps are classified within Level 2 of the fair value hierarchy. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||||||||||
The change in goodwill for each reportable segment during the six months ended June 30, 2014, consisted of the following: | ||||||||||||||||||||||||
(in thousands) | ECBU | GMBU | IBU | Target Analytics | Other | Total | ||||||||||||||||||
Balance at December 31, 2013 | $ | 147,828 | $ | 74,956 | $ | 6,542 | $ | 33,177 | $ | 2,096 | $ | 264,599 | ||||||||||||
Additions related to business combinations | — | 12,320 | — | — | — | 12,320 | ||||||||||||||||||
Adjustments related to prior year business combinations | — | — | 140 | — | — | 140 | ||||||||||||||||||
Effect of foreign currency translation | — | — | 141 | — | — | 141 | ||||||||||||||||||
Balance at June 30, 2014 | $ | 147,828 | $ | 87,276 | $ | 6,823 | $ | 33,177 | $ | 2,096 | $ | 277,200 | ||||||||||||
Schedule Of Amortization Expense | ' | |||||||||||||||||||||||
The following table summarizes amortization expense: | ||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Included in cost of revenue: | ||||||||||||||||||||||||
Cost of license fees | $ | 87 | $ | 126 | $ | 174 | $ | 247 | ||||||||||||||||
Cost of subscriptions | 4,434 | 4,678 | 8,994 | 9,312 | ||||||||||||||||||||
Cost of services | 676 | 633 | 1,332 | 1,266 | ||||||||||||||||||||
Cost of maintenance | 115 | 114 | 230 | 228 | ||||||||||||||||||||
Cost of other revenue | 18 | 19 | 37 | 37 | ||||||||||||||||||||
Total included in cost of revenue | 5,330 | 5,570 | 10,767 | 11,090 | ||||||||||||||||||||
Included in operating expenses | 418 | 636 | 1,005 | 1,314 | ||||||||||||||||||||
Total | $ | 5,748 | $ | 6,206 | $ | 11,772 | $ | 12,404 | ||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||||||||||||
The following table outlines the estimated future amortization expense for each of the next five years for our finite-lived intangible assets as of June 30, 2014: | ||||||||||||||||||||||||
Year ending December 31, | Amortization | |||||||||||||||||||||||
(in thousands) | expense | |||||||||||||||||||||||
2014 - remaining | $ | 12,247 | ||||||||||||||||||||||
2015 | 24,867 | |||||||||||||||||||||||
2016 | 24,459 | |||||||||||||||||||||||
2017 | 22,121 | |||||||||||||||||||||||
2018 | 20,744 | |||||||||||||||||||||||
Total | $ | 104,438 | ||||||||||||||||||||||
Prepaid_Expenses_And_Other_Ass1
Prepaid Expenses And Other Assets (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Components Of Prepaid Expenses And Other Assets | ' | |||||||
Prepaid expenses and other assets consisted of the following as of: | ||||||||
(in thousands) | June 30, | December 31, | ||||||
2014 | 2013 | |||||||
Deferred sales commissions | $ | 20,144 | $ | 20,088 | ||||
Prepaid software maintenance | 5,024 | 6,875 | ||||||
Deferred professional services costs | 6,680 | 7,445 | ||||||
Software development costs | 5,942 | 4,172 | ||||||
Other assets | 11,149 | 10,786 | ||||||
Total prepaid expenses and other assets | 48,939 | 49,366 | ||||||
Less: Long-term portion | 20,668 | 19,251 | ||||||
Total prepaid expenses and other current assets | $ | 28,271 | $ | 30,115 | ||||
Accrued_Expenses_And_Other_Lia1
Accrued Expenses And Other Liabilities (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accrued Expenses And Other Current Liabilities [Abstract] | ' | |||||||
Components Of Accrued Expenses And Other Liabilities | ' | |||||||
Accrued expenses and other liabilities consisted of the following as of: | ||||||||
(in thousands) | June 30, | December 31, | ||||||
2014 | 2013 | |||||||
Taxes payable | $ | 8,341 | $ | 5,430 | ||||
Accrued commissions and salaries | 6,160 | 7,127 | ||||||
Accrued bonuses | 9,532 | 9,258 | ||||||
Customer credit balances | 2,712 | 3,281 | ||||||
Unrecognized tax benefit | 4,089 | 3,698 | ||||||
Other liabilities | 22,320 | 18,304 | ||||||
Total accrued expenses and other liabilities | 53,154 | 47,098 | ||||||
Less: Long-term portion | 7,994 | 6,655 | ||||||
Total accrued expenses and other current liabilities | $ | 45,160 | $ | 40,443 | ||||
Deferred_Revenue_Deferred_Reve
Deferred Revenue Deferred Revenue (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Deferred Revenue Disclosure [Abstract] | ' | |||||||
Deferred Revenue, by Arrangement, Disclosure | ' | |||||||
Deferred revenue consisted of the following as of: | ||||||||
(in thousands) | June 30, | December 31, | ||||||
2014 | 2013 | |||||||
Maintenance | $ | 86,146 | $ | 85,219 | ||||
Subscriptions | 80,651 | 72,480 | ||||||
Services | 31,858 | 32,153 | ||||||
License fees and other | 1,760 | 722 | ||||||
Total deferred revenue | 200,415 | 190,574 | ||||||
Less: Long-term portion | 10,187 | 9,099 | ||||||
Deferred revenue, current portion | $ | 190,228 | $ | 181,475 | ||||
Debt_Tables
Debt (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Schedule of Long-term Debt Instruments | ' | |||||||||||||
The following table summarizes our debt balances and the related weighted average effective interest rates, which includes the effect of interest rate swap agreements. | ||||||||||||||
Debt balance at | Weighted average effective interest rate at | |||||||||||||
(in thousands, except percentages) | June 30, | December 31, | June 30, | December 31, | ||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Credit facility: | ||||||||||||||
Revolving credit loans | $ | — | $ | 70,408 | — | % | 1.95 | % | ||||||
Term loans | 173,906 | 82,500 | 2.39 | % | 2.39 | % | ||||||||
Total debt | 173,906 | 152,908 | 2.39 | % | 2.14 | % | ||||||||
Less: Unamortized debt discount | 1,761 | — | ||||||||||||
Less: Debt, current portion | 4,375 | 17,158 | 1.74 | % | 2.39 | % | ||||||||
Debt, net of current portion | $ | 167,770 | $ | 135,750 | 2.41 | % | 2.11 | % | ||||||
Schedule of Maturities of Long-term Debt | ' | |||||||||||||
As of June 30, 2014, the required annual maturities related to our 2014 Credit Facility were as follows: | ||||||||||||||
Year ending December 31, | Annual maturities | |||||||||||||
(in thousands) | ||||||||||||||
2014 - remaining | $ | 2,188 | ||||||||||||
2015 | 4,375 | |||||||||||||
2016 | 4,375 | |||||||||||||
2017 | 4,375 | |||||||||||||
2018 | 4,375 | |||||||||||||
Thereafter | 154,218 | |||||||||||||
Total required maturities | $ | 173,906 | ||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Fair values of derivative instruments | ' | |||||||||||||
The fair values of our derivative instruments were as follows as of: | ||||||||||||||
(in thousands) | Balance sheet location | June 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||||
Derivative instruments designated as hedging instruments: | ||||||||||||||
Interest rate swaps, current portion | Accrued expenses and other current liabilities | $ | — | $ | 46 | |||||||||
Interest rate swaps, long-term portion | Other liabilities | 553 | 381 | |||||||||||
Total derivative instruments designated as hedging instruments | $ | 553 | $ | 427 | ||||||||||
Effects of derivative instruments in cash flow hedging relationships | ' | |||||||||||||
The effects of derivative instruments in cash flow hedging relationships were as follows: | ||||||||||||||
Gain (loss) recognized in accumulated other comprehensive loss as of | Location of loss reclassified from accumulated other comprehensive loss into income | Gain (loss) reclassified from accumulated other comprehensive loss into income | ||||||||||||
30-Jun-14 | Three months ended June 30, | Six months ended June 30, | ||||||||||||
(in thousands) | 2014 | 2014 | ||||||||||||
Interest rate swaps | $ | (553 | ) | Interest expense | $ | (316 | ) | $ | (530 | ) | ||||
Interest rate swaps | — | Loss on debt extinguishment and termination of derivative instruments | — | (587 | ) | |||||||||
Total | $ | (553 | ) | $ | (316 | ) | $ | (1,117 | ) | |||||
30-Jun-13 | Three months ended June 30, | Six months ended June 30, | ||||||||||||
2013 | 2013 | |||||||||||||
Interest rate swaps | $ | (399 | ) | Interest expense | $ | (199 | ) | $ | (389 | ) |
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future Minimum Lease Commitments Related To Operating Leases | ' | |||
As of June 30, 2014, the future minimum lease commitments related to lease agreements, net of related lease incentives, were as follows: | ||||
Year ending December 31, | Operating | |||
(in thousands) | leases | |||
2014 – remaining | $ | 5,475 | ||
2015 | 10,495 | |||
2016 | 9,896 | |||
2017 | 10,167 | |||
2018 | 10,373 | |||
Thereafter | 44,287 | |||
Total minimum lease payments | $ | 90,693 | ||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule Of Effective Income Tax Rate | ' | |||||||||||
Our effective income tax rates including the effects of period-specific events, were: | ||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Effective tax rate | 37.7 | % | 47.2 | % | 39.1 | % | 40.3 | % |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Summary Of Stock-Based Compensation Expense | ' | |||||||||||||||
The following table summarizes stock-based compensation expense: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Included in cost of revenue: | ||||||||||||||||
Cost of subscriptions | $ | 175 | $ | 189 | $ | 364 | $ | 415 | ||||||||
Cost of services | 582 | 593 | 1,124 | 1,436 | ||||||||||||
Cost of maintenance | 196 | 194 | 341 | 256 | ||||||||||||
Total included in cost of revenue | 953 | 976 | 1,829 | 2,107 | ||||||||||||
Included in operating expenses: | ||||||||||||||||
Sales and marketing | 588 | 545 | 1,059 | 1,243 | ||||||||||||
Research and development | 762 | 1,062 | 1,424 | 2,215 | ||||||||||||
General and administrative | 2,027 | 2,134 | 3,732 | 4,330 | ||||||||||||
Total included in operating expenses | 3,377 | 3,741 | 6,215 | 7,788 | ||||||||||||
Total | $ | 4,330 | $ | 4,717 | $ | 8,044 | $ | 9,895 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of changes in accumulated other comprehensive loss by component | ' | |||||||||||||||
The changes in accumulated other comprehensive loss by component, consisted of the following: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Accumulated other comprehensive loss, beginning of period | $ | (518 | ) | $ | (1,569 | ) | $ | (1,385 | ) | $ | (1,973 | ) | ||||
By component: | ||||||||||||||||
Gains and losses on cash flow hedges: | ||||||||||||||||
Accumulated other comprehensive income (loss) balance, beginning of period | $ | 56 | $ | (672 | ) | $ | (256 | ) | $ | (791 | ) | |||||
Other comprehensive (loss) income before reclassifications, net of tax effects of $375, $(196), $488 and $(198) | (586 | ) | 307 | (755 | ) | 310 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss to interest expense | 316 | 199 | 530 | 389 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss to loss on debt extinguishment and termination of derivative instruments | — | — | 587 | — | ||||||||||||
Tax benefit included in provision for income taxes | (124 | ) | (77 | ) | (444 | ) | (151 | ) | ||||||||
Total amounts reclassified from accumulated other comprehensive loss | 192 | 122 | 673 | 238 | ||||||||||||
Net current-period other comprehensive (loss) income | (394 | ) | 429 | (82 | ) | 548 | ||||||||||
Accumulated other comprehensive loss balance, end of period | $ | (338 | ) | $ | (243 | ) | $ | (338 | ) | $ | (243 | ) | ||||
Foreign currency translation adjustment: | ||||||||||||||||
Accumulated other comprehensive loss balance, beginning of period | $ | (574 | ) | $ | (897 | ) | $ | (1,129 | ) | $ | (1,182 | ) | ||||
Translation adjustments | (385 | ) | (266 | ) | 170 | 19 | ||||||||||
Accumulated other comprehensive loss balance, end of period | (959 | ) | (1,163 | ) | (959 | ) | (1,163 | ) | ||||||||
Accumulated other comprehensive loss, end of period | $ | (1,297 | ) | $ | (1,406 | ) | $ | (1,297 | ) | $ | (1,406 | ) |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Reportable Segment Financial Results | ' | |||||||||||||||
Summarized reportable segment financial results, were as follows: | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue by segment: | ||||||||||||||||
ECBU | $ | 54,373 | $ | 49,275 | $ | 104,239 | $ | 93,954 | ||||||||
GMBU | 63,194 | 55,924 | 120,849 | 108,942 | ||||||||||||
IBU | 12,126 | 10,788 | 22,764 | 20,026 | ||||||||||||
Target Analytics | 9,657 | 9,458 | 19,095 | 18,126 | ||||||||||||
Other(1) | 38 | 23 | 63 | 43 | ||||||||||||
Total revenue | $ | 139,388 | $ | 125,468 | $ | 267,010 | $ | 241,091 | ||||||||
Segment operating income(2): | ||||||||||||||||
ECBU | $ | 36,357 | $ | 26,496 | $ | 68,458 | $ | 50,138 | ||||||||
GMBU | 41,968 | 33,371 | 80,874 | 65,546 | ||||||||||||
IBU | 1,752 | 2,614 | 3,173 | 3,238 | ||||||||||||
Target Analytics | 5,517 | 3,735 | 9,820 | 6,911 | ||||||||||||
Other(1) | 965 | 80 | 2,012 | 291 | ||||||||||||
86,559 | 66,296 | 164,337 | 126,124 | |||||||||||||
Less: | ||||||||||||||||
Corporate unallocated costs(3) | 60,485 | 41,055 | 119,248 | 84,913 | ||||||||||||
Stock-based compensation costs | 4,330 | 4,717 | 8,044 | 9,895 | ||||||||||||
Amortization expense | 5,748 | 6,206 | 11,772 | 12,404 | ||||||||||||
Interest expense, net | 1,315 | 1,477 | 2,758 | 3,154 | ||||||||||||
Loss on debt extinguishment and termination of derivative instruments | — | — | 996 | — | ||||||||||||
Other expense (income), net | (225 | ) | 309 | 11 | 206 | |||||||||||
Income before provision for income taxes | $ | 14,906 | $ | 12,532 | $ | 21,508 | $ | 15,552 | ||||||||
-1 | Other includes revenue and the related costs from the sale of products and services not directly attributable to an operating segment. | |||||||||||||||
-2 | Segment operating income includes direct, controllable costs related to the sale of products and services by the reportable segment. | |||||||||||||||
-3 | Corporate unallocated costs include research and development, depreciation expense, and certain corporate sales, marketing, general and administrative expenses. |
Organization_Details
Organization (Details) | Jun. 30, 2014 |
Customers | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Approximate number of active customers distributed across verticals | 30,000 |
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Significant Accounting Policies [Line Items] | ' |
Contract term (in years) of the maintenance services | '1 year |
Minimum [Member] | ' |
Significant Accounting Policies [Line Items] | ' |
Recognition period (in years) of revenue from hosting services | '1 year |
Recognition period (in years) of revenue from hosted applications | '1 year |
Maximum [Member] | ' |
Significant Accounting Policies [Line Items] | ' |
Number of days to exceed for customary payment terms | '90 days |
Recognition period (in years) of revenue from hosting services | '3 years |
Recognition period (in years) of revenue from hosted applications | '3 years |
Business_Combinations_Details
Business Combinations (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | |
Jun. 16, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 16, 2014 | |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Goodwill additions related to business combinations | ' | ' | $12,320,000 | ' |
GMBU [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Goodwill additions related to business combinations | ' | ' | 12,320,000 | ' |
WhippleHill [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Total cash consideration paid for the acquisition | 35,000,000 | ' | ' | ' |
Acquisition-related costs | ' | 100,000 | 100,000 | ' |
Finite-lived intangible assets acquired | 19,000,000 | ' | ' | ' |
Goodwill, tax deductible amount | ' | ' | ' | 11,800,000 |
Net tangible assets acquired and liabilities assumed | ' | ' | ' | 3,700,000 |
Estimated fair value of accounts receivable acquired | ' | ' | ' | 5,100,000 |
WhippleHill [Member] | GMBU [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Goodwill additions related to business combinations | $12,300,000 | ' | ' | ' |
Business_Combinations_Acquired
Business Combinations (Acquired Intangible Assets) (Details) (WhippleHill [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jun. 16, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets acquired | $19,000 |
Customer Relationships [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets acquired | 10,900 |
Finite-lived intangible assets acquired, weighted average useful life | '10 years |
Acquired Technology [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets acquired | 5,700 |
Finite-lived intangible assets acquired, weighted average useful life | '6 years |
Trade Names [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets acquired | 2,300 |
Finite-lived intangible assets acquired, weighted average useful life | '8 years |
Noncompete Agreements [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets acquired | $100 |
Finite-lived intangible assets acquired, weighted average useful life | '3 years |
Earnings_Per_Share_Computation
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' |
Net income, as reported | $9,280 | $6,623 | $13,094 | $9,289 | $30,472 |
Weighted average common shares | 45,155,955 | 44,538,444 | 45,141,878 | 44,506,157 | ' |
Employee stock-based compensation | 504,955 | 811,222 | 465,228 | 684,001 | ' |
Weighted average common shares assuming dilution | 45,660,910 | 45,349,666 | 45,607,106 | 45,190,158 | ' |
Earnings (Loss) Per Share, Basic and Diluted [Abstract] | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.21 | $0.15 | $0.29 | $0.21 | ' |
Diluted (in dollars per share) | $0.20 | $0.15 | $0.29 | $0.21 | ' |
Earnings_Per_Share_AntiDilutiv
Earnings Per Share (Anti-Dilutive Securities) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Shares excluded from calculations of diluted earnings per share | 330,095 | 54,222 | 336,745 | 105,339 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments, liabilities | $553 | $427 |
Total financial liabilities | 553 | 427 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments, liabilities | 0 | 0 |
Total financial liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments, liabilities | 553 | 427 |
Total financial liabilities | 553 | 427 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative instruments, liabilities | 0 | 0 |
Total financial liabilities | $0 | $0 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Change in Goodwill by Reportable Segment) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Roll Forward] | ' |
Beginning Balance | $264,599 |
Additions related to business combinations | 12,320 |
Adjustments related to prior year business combinations | 140 |
Effect of foreign currency translation | 141 |
Ending Balance | 277,200 |
ECBU [Member] | ' |
Goodwill [Roll Forward] | ' |
Beginning Balance | 147,828 |
Additions related to business combinations | 0 |
Adjustments related to prior year business combinations | 0 |
Effect of foreign currency translation | 0 |
Ending Balance | 147,828 |
GMBU [Member] | ' |
Goodwill [Roll Forward] | ' |
Beginning Balance | 74,956 |
Additions related to business combinations | 12,320 |
Adjustments related to prior year business combinations | 0 |
Effect of foreign currency translation | 0 |
Ending Balance | 87,276 |
IBU [Member] | ' |
Goodwill [Roll Forward] | ' |
Beginning Balance | 6,542 |
Additions related to business combinations | 0 |
Adjustments related to prior year business combinations | 140 |
Effect of foreign currency translation | 141 |
Ending Balance | 6,823 |
Target Analytics [Member] | ' |
Goodwill [Roll Forward] | ' |
Beginning Balance | 33,177 |
Additions related to business combinations | 0 |
Adjustments related to prior year business combinations | 0 |
Effect of foreign currency translation | 0 |
Ending Balance | 33,177 |
Other [Member] | ' |
Goodwill [Roll Forward] | ' |
Beginning Balance | 2,096 |
Additions related to business combinations | 0 |
Adjustments related to prior year business combinations | 0 |
Effect of foreign currency translation | 0 |
Ending Balance | $2,096 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Summary of Amortization Expense) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Amortization Of Intangible Assets Acquired By Income Statement Location [Line Items] | ' | ' | ' | ' |
Amortization expense | $5,748 | $6,206 | $11,772 | $12,404 |
Cost Of License Fees [Member] | ' | ' | ' | ' |
Amortization Of Intangible Assets Acquired By Income Statement Location [Line Items] | ' | ' | ' | ' |
Amortization expense | 87 | 126 | 174 | 247 |
Cost Of Subscriptions [Member] | ' | ' | ' | ' |
Amortization Of Intangible Assets Acquired By Income Statement Location [Line Items] | ' | ' | ' | ' |
Amortization expense | 4,434 | 4,678 | 8,994 | 9,312 |
Cost Of Services [Member] | ' | ' | ' | ' |
Amortization Of Intangible Assets Acquired By Income Statement Location [Line Items] | ' | ' | ' | ' |
Amortization expense | 676 | 633 | 1,332 | 1,266 |
Cost Of Maintenance [Member] | ' | ' | ' | ' |
Amortization Of Intangible Assets Acquired By Income Statement Location [Line Items] | ' | ' | ' | ' |
Amortization expense | 115 | 114 | 230 | 228 |
Cost Of Other Revenue [Member] | ' | ' | ' | ' |
Amortization Of Intangible Assets Acquired By Income Statement Location [Line Items] | ' | ' | ' | ' |
Amortization expense | 18 | 19 | 37 | 37 |
Total Included In Cost Of Revenue [Member] | ' | ' | ' | ' |
Amortization Of Intangible Assets Acquired By Income Statement Location [Line Items] | ' | ' | ' | ' |
Amortization expense | 5,330 | 5,570 | 10,767 | 11,090 |
Included In Operating Expenses [Member] | ' | ' | ' | ' |
Amortization Of Intangible Assets Acquired By Income Statement Location [Line Items] | ' | ' | ' | ' |
Amortization expense | $418 | $636 | $1,005 | $1,314 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Finite-lived Intangible Assets, Future Amortization) (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Future amortization expense for finite-lived intangible assets: | ' |
2014 - remaining | $12,247 |
2015 | 24,867 |
2016 | 24,459 |
2017 | 22,121 |
2018 | 20,744 |
Total | $104,438 |
Prepaid_Expenses_And_Other_Ass2
Prepaid Expenses And Other Assets (Components Of Prepaid Expenses And Other Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Deferred sales commissions | $20,144 | $20,088 |
Prepaid software maintenance | 5,024 | 6,875 |
Deferred professional services costs | 6,680 | 7,445 |
Software development costs | 5,942 | 4,172 |
Other assets | 11,149 | 10,786 |
Total prepaid expenses and other assets | 48,939 | 49,366 |
Less: Long-term portion | 20,668 | 19,251 |
Total prepaid expenses and other current assets | $28,271 | $30,115 |
Accrued_Expenses_And_Other_Lia2
Accrued Expenses And Other Liabilities (Components Of Accrued Expenses And Other Liabilities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Expenses and Other Liabilities [Abstract] | ' | ' |
Taxes payable | $8,341 | $5,430 |
Accrued commissions and salaries | 6,160 | 7,127 |
Accrued bonuses | 9,532 | 9,258 |
Customer credit balances | 2,712 | 3,281 |
Unrecognized tax benefit | 4,089 | 3,698 |
Other liabilities | 22,320 | 18,304 |
Total accrued expenses and other liabilities | 53,154 | 47,098 |
Less: Long-term portion | 7,994 | 6,655 |
Total accrued expenses and other current liabilities | $45,160 | $40,443 |
Deferred_Revenue_Deferred_Reve1
Deferred Revenue Deferred Revenue (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | $200,415 | $190,574 |
Less: Long-term portion | 10,187 | 9,099 |
Deferred revenue, current portion | 190,228 | 181,475 |
Maintenance [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 86,146 | 85,219 |
Subscription [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 80,651 | 72,480 |
Services [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 31,858 | 32,153 |
License fees and other [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | $1,760 | $722 |
Debt_Details
Debt (Details) (USD $) | 1 Months Ended | 6 Months Ended | |||
Feb. 28, 2014 | Feb. 29, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Revolving credit facility, maximum borrowing capacity | $325,000,000 | $325,000,000 | ' | ' | ' |
Revolving credit facility, term | '5 years | '5 years | ' | ' | ' |
Long-term Debt | 175,000,000 | ' | 173,906,000 | ' | 152,908,000 |
Change in present value of future cash flows to financing investors | 10.00% | ' | ' | ' | ' |
Loss on debt extinguishment related to write-off of deferred financing costs | 400,000 | ' | ' | ' | ' |
Payment of financing costs | 2,500,000 | ' | 2,484,000 | 0 | ' |
Capitalized financing costs to be amortized over term of facility | 1,100,000 | ' | ' | ' | ' |
Total deferred financing costs included in other assets | ' | ' | $1,600,000 | ' | $1,900,000 |
Commitment fee on unused portion of revolving credit facility | ' | ' | 0.23% | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Commitment fee on unused portion of revolving credit facility | ' | ' | 0.15% | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Commitment fee on unused portion of revolving credit facility | ' | ' | 0.23% | ' | ' |
Revolving Credit Loans Bear Interest Rate [Member] | Base Rate [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | 0.00% | ' | ' |
Revolving Credit Loans Bear Interest Rate [Member] | Base Rate [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | 0.50% | ' | ' |
Revolving Credit Loans Bear Interest Rate [Member] | Variable Rate One Month Libor Plus [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Revolving credit facility, variable interest rate | ' | ' | 1.00% | ' | ' |
Revolving Credit Loans Bear Interest Rate [Member] | Base Rate Option Federal Funds Rate Plus [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Revolving credit facility, variable interest rate | ' | ' | 0.50% | ' | ' |
Revolving Credit Loans Bear Interest Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | 1.00% | ' | ' |
Revolving Credit Loans Bear Interest Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | 1.50% | ' | ' |
Swingline Loans Bear Interest Rate [Member] | Base Rate [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | 0.00% | ' | ' |
Swingline Loans Bear Interest Rate [Member] | Base Rate [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | 0.50% | ' | ' |
Debt_Summary_of_Debt_Details
Debt (Summary of Debt) (Details) (USD $) | Jun. 30, 2014 | Feb. 28, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ' | ' | ' |
Total debt | $173,906,000 | $175,000,000 | $152,908,000 |
Less: Unamortized debt discount | 1,761,000 | ' | 0 |
Less: Debt, current portion | -4,375,000 | ' | -17,158,000 |
Debt, net of current portion | 167,770,000 | ' | 135,750,000 |
Weighted average effective interest rate | 2.39% | ' | 2.14% |
Revolving Credit Loans [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Total debt | 0 | ' | 70,408,000 |
Weighted average effective interest rate | 0.00% | ' | 1.95% |
Term Loans [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Total debt | $173,906,000 | ' | $82,500,000 |
Weighted average effective interest rate | 2.39% | ' | 2.39% |
Short-term Debt [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Weighted average effective interest rate | 1.74% | ' | 2.39% |
Long-term Debt [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Weighted average effective interest rate | 2.41% | ' | 2.11% |
Debt_Annual_Maturities_Related
Debt (Annual Maturities Related to Credit Facility) (Details) (USD $) | Jun. 30, 2014 | Feb. 28, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ' | ' | ' |
2014 - remaining | $2,188,000 | ' | ' |
2015 | 4,375,000 | ' | ' |
2016 | 4,375,000 | ' | ' |
2017 | 4,375,000 | ' | ' |
2018 | 4,375,000 | ' | ' |
Thereafter | 154,218,000 | ' | ' |
Total debt | $173,906,000 | $175,000,000 | $152,908,000 |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 06, 2014 | |
Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Loss related to termination of derivative instruments | $600,000 | ' | ' | ' | ' | ' |
Tax benefit recognized on termination of derivative instruments | 200,000 | ' | ' | ' | ' | ' |
Notional value of the swap agreement | ' | ' | ' | ' | ' | 125,000,000 |
Future notional value of the swap agreement | ' | ' | ' | ' | ' | 75,000,000 |
Ineffective portion of interest rate swap(s) | ' | $0 | $0 | $0 | $0 | ' |
Derivative_Instruments_Fair_Va
Derivative Instruments (Fair Value of Derivative Instruments) (Details) (Designated as Hedging Instrument [Member], Interest Rate Swap [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Total derivative instruments designated as hedging instruments | $553 | $427 |
Accrued expenses and other current liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Interest rate swaps, current portion | 0 | 46 |
Other Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Interest rate swaps, long-term portion | $553 | $381 |
Derivative_Instruments_Effects
Derivative Instruments (Effects of Derivative Instruments in Cash Flow Hedging Relationships - Current Year) (Details) (Interest Rate Swap [Member], Cash Flow Hedging [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in accumulated other comprehensive loss | ' | ' | ($553) | ($399) |
Gain (loss) reclassified from accumulated other comprehensive loss into income | -316 | ' | -1,117 | ' |
2014 Credit Facility [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in accumulated other comprehensive loss | ' | ' | -553 | ' |
2012 Credit Facility [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in accumulated other comprehensive loss | ' | ' | 0 | ' |
Interest Expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) reclassified from accumulated other comprehensive loss into income | -316 | -199 | -530 | -389 |
Loss on debt extinguishment and termination of derivative instruments [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (loss) reclassified from accumulated other comprehensive loss into income | $0 | ' | ($587) | ' |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 31, 2008 | Jun. 30, 2014 | 4-May-12 | Jun. 30, 2014 | 31-May-12 |
Leasehold Improvements [Member] | Leasehold Improvements [Member] | Leasehold Improvements [Member] | Leasehold Improvements [Member] | Incentive Payments [Member] | Incentive Payments [Member] | Incentive Payments [Member] | Incentive Payments [Member] | Incurred Expense Under Contractual Arrangements [Member] | Incurred Expense Under Contractual Arrangements [Member] | Charleston, SC [Member] | Charleston, SC [Member] | Austin, TX [Member] | Austin, TX [Member] | Austin, TX [Member] | |||||
lease | lease | ||||||||||||||||||
sqft | |||||||||||||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease agreement term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | ' | ' | ' | ' |
Number of renewal options (leases) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | 2 |
Term of lease renewal options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | '5 years | ' | ' |
Annual Base Rent of Operating Lease | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4 | ' | $2.20 | ' |
Percentage of maximum change in base rent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' | 4.00% | ' | ' |
Increase in square feet of leased space (square foot) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 |
Percentage of minimum change in base rent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' |
Standby letter of credit for security deposit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Reimbursable leasehold improvements | ' | ' | 9.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in rent expense | ' | ' | ' | ' | 0.2 | 0.2 | 0.3 | 0.3 | 0.6 | 0.3 | 1.2 | 1 | ' | ' | ' | ' | ' | ' | ' |
Total rent expense | 2.3 | 2.4 | 4.5 | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual arrangement length minimum | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual arrangement length maximum | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate minimum purchase commitment for third-party relationships utilized with the Company's products | 15.1 | ' | 15.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Professional fees paid to third-party service providers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.70 | $3.30 | ' | ' | ' | ' | ' |
Commitments_And_Contingencies_2
Commitments And Contingencies (Future Minimum Lease Commitments Related To Lease Agreements, Net Of Related Sublease Commitments And Lease Incentives) (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 - remaining, Operating leases | $5,475 |
2015, Operating leases | 10,495 |
2016, Operating leases | 9,896 |
2017, Operating leases | 10,167 |
2018, Operating leases | 10,373 |
Thereafter, Operating leases | 44,287 |
Total minimum lease payments, Operating leases | $90,693 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Effective tax rate | 37.70% | 47.20% | 39.10% | 40.30% | ' |
Research and development tax credit | ' | ' | ' | $1.90 | ' |
Unrecognized tax benefit that, if recognized, would favorably affect the effective tax rate | $3.60 | ' | $3.60 | ' | $3.70 |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | $4,330 | $4,717 | $8,044 | $9,895 |
Cost Of Subscriptions [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | 175 | 189 | 364 | 415 |
Cost Of Services [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | 582 | 593 | 1,124 | 1,436 |
Cost Of Maintenance [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | 196 | 194 | 341 | 256 |
Total Included In Cost Of Revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | 953 | 976 | 1,829 | 2,107 |
Sales And Marketing [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | 588 | 545 | 1,059 | 1,243 |
Research and Development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | 762 | 1,062 | 1,424 | 2,215 |
General And Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | 2,027 | 2,134 | 3,732 | 4,330 |
Operating Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | $3,377 | $3,741 | $6,215 | $7,788 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 13, 2014 | Mar. 14, 2014 | Feb. 28, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 30, 2014 | |
Subsequent Event [Member] | ||||||||
Dividends Payable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Annual dividend per share approved (in dollars per share) | ' | ' | $0.48 | ' | ' | ' | ' | ' |
Quarterly dividends paid per share (in dollars per share) | ' | ' | ' | ' | ' | $0.12 | ' | ' |
Dividends paid per share (in dollars per share) | $0.12 | $0.12 | ' | $0.12 | $0.12 | $0.24 | $0.24 | ' |
Dividends payable per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.12 |
Stockholders_Equity_Changes_in
Stockholders' Equity (Changes in accumulated other comprehensive loss by component) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income, beginning of period | ($518) | ($1,569) | ($1,385) | ($1,973) |
Translation adjustments | -385 | -266 | 170 | 19 |
Accumulated other comprehensive (loss) income, end of period | -1,297 | -1,406 | -1,297 | -1,406 |
Unrealized gains (losses), tax effects | 375 | -196 | 488 | -198 |
Gains and Losses on Cash Flow Hedges [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income, beginning of period | 56 | -672 | -256 | -791 |
Other comprehensive (loss) income before reclassifications | -586 | 307 | -755 | 310 |
Amounts reclassified from accumulated other comprehensive loss to interest expense | 316 | 199 | 530 | 389 |
Amounts reclassified from accumulated other comprehensive loss to loss on debt extinguishment and termination of derivative instruments | 0 | 0 | 587 | 0 |
Tax benefit included in provision for income taxes | -124 | -77 | -444 | -151 |
Total amounts reclassified from accumulated other comprehensive loss | 192 | 122 | 673 | 238 |
Net current-period other comprehensive income | -394 | 429 | -82 | 548 |
Accumulated other comprehensive (loss) income, end of period | -338 | -243 | -338 | -243 |
Foreign Currency Translation Adjustment [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income, beginning of period | -574 | -897 | -1,129 | -1,182 |
Translation adjustments | -385 | -266 | 170 | 19 |
Accumulated other comprehensive (loss) income, end of period | ($959) | ($1,163) | ($959) | ($1,163) |
Segment_Information_Reportable
Segment Information (Reportable Segment Financial Results) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenue | $139,388 | $125,468 | $267,010 | $241,091 | ||||
Total segment operating income | 86,559 | 66,296 | 164,337 | 126,124 | ||||
Corporate unallocated costs | 60,485 | [1] | 41,055 | [1] | 119,248 | [1] | 84,913 | [1] |
Stock-based compensation costs | 4,330 | 4,717 | 8,044 | 9,895 | ||||
Amortization expense | 5,748 | 6,206 | 11,772 | 12,404 | ||||
Interest expense, net | 1,315 | 1,477 | 2,758 | 3,154 | ||||
Loss on debt extinguishment and termination of derivative instruments | 0 | 0 | 996 | 0 | ||||
Other expense (income), net | -225 | 309 | 11 | 206 | ||||
Income before provision for income taxes | 14,906 | 12,532 | 21,508 | 15,552 | ||||
ECBU [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenue | 54,373 | 49,275 | 104,239 | 93,954 | ||||
Total segment operating income | 36,357 | [2] | 26,496 | [2] | 68,458 | [2] | 50,138 | [2] |
GMBU [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenue | 63,194 | 55,924 | 120,849 | 108,942 | ||||
Total segment operating income | 41,968 | [2] | 33,371 | [2] | 80,874 | [2] | 65,546 | [2] |
IBU [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenue | 12,126 | 10,788 | 22,764 | 20,026 | ||||
Total segment operating income | 1,752 | [2] | 2,614 | [2] | 3,173 | [2] | 3,238 | [2] |
Target Analytics [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenue | 9,657 | 9,458 | 19,095 | 18,126 | ||||
Total segment operating income | 5,517 | [2] | 3,735 | [2] | 9,820 | [2] | 6,911 | [2] |
Other [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total revenue | 38 | [3] | 23 | [3] | 63 | [3] | 43 | [3] |
Total segment operating income | $965 | [2],[3] | $80 | [2],[3] | $2,012 | [2],[3] | $291 | [2],[3] |
[1] | Corporate unallocated costs include research and development, depreciation expense, and certain corporate sales, marketing, general and administrative expenses. | |||||||
[2] | Segment operating income includes direct, controllable costs related to the sale of products and services by the reportable segment. | |||||||
[3] | Other includes revenue and the related costs from the sale of products and services not directly attributable to an operating segment. |
Restructuring_Narrative_Detail
Restructuring (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jan. 31, 2013 | Jun. 30, 2013 |
San Diego Office Transition Plan [Member] | San Diego Office Transition Plan [Member] | Plan to Realign Company's Workforce [Member] | Plan to Realign Company's Workforce [Member] | |||||
position | ||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Costs incurred during the period | $0 | $146 | $0 | $3,356 | $100 | $200 | ' | $3,200 |
Reduction in workforce, number of positions | ' | ' | ' | ' | ' | ' | 135 | ' |