Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SREV | |
Entity Registrant Name | SERVICESOURCE INTERNATIONAL, INC. | |
Entity Central Index Key | 1,310,114 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common stock, shares outstanding | 89,189,275 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 39,664 | $ 47,692 |
Short-term investments | 139,472 | 137,881 |
Accounts receivable, net | 52,534 | 63,289 |
Prepaid expenses and other | 7,864 | 7,607 |
Total current assets | 239,534 | 256,469 |
Property and equipment, net | 36,688 | 38,180 |
Deferred income taxes, net of current portion | 69 | 64 |
Goodwill and intangibles, net | 7,176 | 7,932 |
Other assets, net | 3,386 | 3,445 |
Total assets | 286,853 | 306,090 |
Current liabilities: | ||
Accounts payable | 1,109 | 1,916 |
Accrued taxes | 738 | 1,388 |
Accrued compensation and benefits | 17,143 | 21,579 |
Deferred revenue | 3,033 | 4,152 |
Accrued expenses | 5,895 | 5,891 |
Other current liabilities | 2,304 | 2,958 |
Total current liabilities | 30,222 | 37,884 |
Convertible notes, net | 139,333 | 134,775 |
Other long-term liabilities | 7,033 | 6,495 |
Total liabilities | 176,588 | 179,154 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Common stock; $0.0001 par value; 1,000,000 shares authorized; 88,137 shares issued and 89,016 shares outstanding as of June 30, 2017; 88,304 shares issued and 88,183 shares outstanding as of December 31, 2016 | 8 | 8 |
Treasury stock | (441) | (441) |
Additional paid-in capital | 351,971 | 344,521 |
Accumulated deficit | (241,086) | (216,361) |
Accumulated other comprehensive income | (187) | (791) |
Total stockholders’ equity | 110,265 | 126,936 |
Total liabilities and stockholders’ equity | $ 286,853 | $ 306,090 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 88,137,000 | 88,304,000 |
Common stock, shares outstanding (in shares) | 89,016,000 | 88,183,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Net revenue | $ 58,262 | $ 61,969 | $ 114,970 | $ 121,719 |
Cost of revenue | 39,517 | 40,344 | 80,926 | 81,778 |
Gross profit | 18,745 | 21,625 | 34,044 | 39,941 |
Operating expenses: | ||||
Sales and marketing | 8,620 | 11,326 | 16,960 | 21,779 |
Research and development | 1,243 | 2,016 | 3,485 | 4,180 |
General and administrative | 13,505 | 11,552 | 27,486 | 23,595 |
Restructuring and other | 5,715 | 0 | 5,715 | 0 |
Total operating expenses | 29,083 | 24,894 | 53,646 | 49,554 |
Loss from operations | (10,338) | (3,269) | (19,602) | (9,613) |
Interest expense and other, net | (2,646) | (1,700) | (4,717) | (3,209) |
Loss before income taxes | (12,984) | (4,969) | (24,319) | (12,822) |
Income tax provision | 117 | 249 | 406 | 1,537 |
Net loss | $ (13,101) | $ (5,218) | $ (24,725) | $ (14,359) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.15) | $ (0.06) | $ (0.28) | $ (0.17) |
Weighted average common shares outstanding, basic and diluted (in shares) | 88,813 | 85,413 | 88,600 | 85,747 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (13,101) | $ (5,218) | $ (24,725) | $ (14,359) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 628 | (703) | 499 | (1,119) |
Unrealized gain (loss) on short-term investments | 32 | (169) | 105 | 930 |
Other comprehensive income (loss), net of tax | 660 | (872) | 604 | (189) |
Total comprehensive loss, net of tax | $ (12,441) | $ (6,090) | $ (24,121) | $ (14,548) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (24,725) | $ (14,359) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 10,801 | 7,564 |
Amortization of debt discount and issuance costs | 4,557 | 4,247 |
Accretion of premium on short-term investments | (114) | 554 |
Deferred income taxes | 148 | 855 |
Stock-based compensation | 6,912 | 5,195 |
Restructuring and other | 2,901 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 12,239 | 2,287 |
Deferred revenue | (1,119) | (303) |
Prepaid expenses and other | (37) | 303 |
Accounts payable | (825) | 766 |
Accrued taxes | (664) | (231) |
Accrued compensation and benefits | (5,164) | 317 |
Accrued expenses | (1,508) | 1,031 |
Other liabilities | (364) | 336 |
Net cash provided by operating activities | 3,038 | 8,562 |
Cash flows from investing activities | ||
Acquisition of property and equipment | (9,080) | (14,316) |
Purchases of short-term investments | (37,806) | (55,133) |
Sales of short-term investments | 33,457 | 53,361 |
Maturities of short-term investments | 3,025 | 350 |
Net cash used in investing activities | (10,404) | (15,738) |
Cash flows from financing activities | ||
Repayment on capital leases obligations | (34) | (103) |
Repurchase of common stock | 0 | (8,921) |
Proceeds from common stock issuances | 616 | 739 |
Minimum tax withholding requirement | (322) | (242) |
Net cash provided by (used in) financing activities | 260 | (8,527) |
Net decrease in cash and cash equivalents | (7,106) | (15,703) |
Effect of exchange rate changes on cash and cash equivalents | (922) | (1,335) |
Cash and cash equivalents at beginning of period | 47,692 | 72,334 |
Cash and cash equivalents at end of period | $ 39,664 | $ 55,296 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation ServiceSource International, Inc. (together with its subsidiaries, the “Company”) is a global leader in outsourced, performance-based customer success and revenue growth solutions. Through the Company’s people, processes and technology, the Company grows and retains revenue on behalf of its clients-some of the world’s leading business-to-business companies-in more than 35 languages. The Company’s solutions help its clients strengthen their customer relationships, drive improved customer adoption, expansion and retention and minimize churn. The Company’s technology platform and best-practice business processes combined with its highly-trained, client-focused revenue delivery professionals and data from over 15 years of operating experience enable the Company to provide its clients greater value for its customer success services than attained by its clients' in-house customer success teams. The Company’s pay-for-performance model allows its clients to pay for the services through either flat-rate or variable commissions based on the revenue generated by the Company on their behalf. Fixed-fee arrangements are typically used in quick deployments to address discrete target areas of our clients’ needs. The Company also generates revenue through its professional services teams, who assist clients with data optimization, as well as through supporting select existing clients with the Company’s Renew OnDemand application. The Company’s corporate headquarters is located in Denver, Colorado. The Company has additional U.S. offices in California and Tennessee, and international offices in Bulgaria, Ireland, Japan, Malaysia, Philippines, Singapore and the United Kingdom. The accompanying unaudited interim condensed consolidated financial statements (“condensed consolidated financial statements”) include the accounts of ServiceSource International, Inc. and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP” or “GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X, without audit. Accordingly, they do not include all of the information required by U.S. GAAP for annual financial statements. The unaudited condensed consolidated balance sheet as of December 31, 2016 has been derived from the Company's audited annual consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission ("SEC") on March 6, 2017. These condensed consolidated financial statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto for the year ended December 31, 2016 , included in our Annual Report on Form 10-K. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair statement of the Company's financial position, operating results, and cash flows for the interim periods presented. Preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Also, the results for the interim periods are not necessarily indicative of results for the entire year. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) which amended the existing FASB Accounting Standards Codification. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The standard also specifies that the incremental costs of obtaining a contract with a customer and the costs of fulfilling a contract with a customer (if those costs are not within the scope of another Topic or Sub-Topic) would be deferred and recognized over the appropriate period of contract performance if they are expected to be recovered. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The FASB recently issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method, also known as the cumulative catch-up transition method). The updates are effective for the Company for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for annual periods beginning after December 15, 2016. The Company continues to assess the impacts of the standard, and has not yet determined whether the standard will have a material impact on our consolidated financial statements. However, we currently believe the most significant impact is from the timing of recognition of sales commission expenses, which upon adoption will be recognized as costs over a period of time instead of immediately. We are also in the process of assessing the impact of the new standard on certain of our contracts that include performance-based fees. We currently recognize such fees in the period when the performance criteria have been met; however, under the new standard we would estimate the variable fees and recognize amounts for which it is probable that a significant reversal would not occur. For certain contracts, this could result in acceleration of recognition of the performance-based fees. We do not currently expect our recurring revenue management fees, based on a fixed percentage of overall sales value associated with the service contracts, to be significantly impacted by the new standard. We will adopt the standard in the first quarter of 2018 and preliminarily expect to use the modified prospective method. However, we are continuing to evaluate the impact of the standard, and our adoption method is subject to change. We expect to complete our assessment process, including impacts on our processes, systems and financial statement disclosures, by the end of the third quarter of 2017. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842). This standard requires entities that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The standard is effective for fiscal years and the interim periods within those fiscal years beginning after December 15, 2018. The guidance is required to be applied by the modified retrospective transition approach. Early adoption is permitted. The Company continues to assess the impact of the adoption of this authoritative guidance on its consolidated financial statements. Reclassifications Amounts shown in Financing activities - Minimum tax withholding requirement in the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2016 have been reclassified from Operating activities - Prepaid expenses and other, to reflect the current period presentation as a result of the adoption of ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which requires shares withheld for employee taxes to be reclassified from operating activities to financing activities. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 6 Months Ended |
Jun. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments Cash equivalents consist of highly liquid fixed-income investments with original maturities of three months or less at the time of purchase, including money market funds. Short-term investments consist of readily marketable securities with a remaining maturity of more than three months from time of purchase. The Company classifies all of its cash equivalents and short-term investments as “available for sale,” as these investments are free of trading restrictions and are available for use in the Company's daily operations. These marketable securities are carried at fair value, with the unrealized gains and losses, net of tax, reported as accumulated other comprehensive income and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized. When the Company determines that other-than-temporary declines in fair value have occurred, the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are determined using the specific identification method. The Company’s realized gains and losses in the three and six months ended June 30, 2017 and 2016 were insignificant. Cash and cash equivalents and short-term investments consisted of the following as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 39,596 $ — $ — $ 39,596 Cash equivalents: Money market mutual funds 68 — — 68 Total cash and cash equivalents 39,664 — — 39,664 Short-term investments: Corporate bonds 55,404 60 (115 ) 55,349 U.S. agency securities 34,649 1 (245 ) 34,405 Asset-backed securities 23,852 7 (29 ) 23,830 U.S. Treasury securities 26,150 — (262 ) 25,888 Total short-term investments 140,055 68 (651 ) 139,472 Cash, cash equivalents and short-term investments $ 179,719 $ 68 $ (651 ) $ 179,136 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 47,060 $ — $ — $ 47,060 Cash equivalents: Money market mutual funds 632 — — 632 Total cash and cash equivalents 47,692 — — 47,692 Short-term investments: Corporate bonds 54,827 19 (188 ) 54,658 U.S. agency securities 34,658 — (281 ) 34,377 Asset-backed securities 26,431 25 (23 ) 26,433 U.S. Treasury securities 22,701 — (288 ) 22,413 Total short-term investments 138,617 44 (780 ) 137,881 Cash, cash equivalents and short-term investments $ 186,309 $ 44 $ (780 ) $ 185,573 The following table summarizes the amortized cost and estimated fair value of money market mutual funds and short-term fixed income securities classified as short-term investments based on stated maturities as of June 30, 2017 (in thousands): Amortized Cost Estimated Fair Value Less than 1 year $ 16,105 $ 16,108 Due in 1 to 3 years 124,018 123,432 Total $ 140,123 $ 139,540 As of June 30, 2017 , the Company did not consider any of its investments to be other-than-temporarily impaired. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures certain financial instruments at fair value on a recurring basis. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities. Level 2 valuations are based on inputs that are observable, either directly or indirectly, other than quoted prices included within Level 1. Such inputs used in determining fair value for Level 2 valuations include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 valuations are based on information that is unobservable and significant to the overall fair value measurement. All of the Company’s cash equivalents and short-term investments are classified within Level 1 or Level 2. The following table presents information about the Company’s financial instruments that are measured at fair value as of June 30, 2017 and indicates the fair value hierarchy of the valuation (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents: Money market mutual funds $ 68 $ 68 $ — Total cash equivalents 68 68 — Short-term investments: Corporate bonds 55,349 — 55,349 U.S. agency securities 34,405 — 34,405 Asset-backed securities 23,830 — 23,830 U.S. Treasury securities 25,888 — 25,888 Total short-term investments 139,472 — 139,472 Cash equivalents and short-term investments $ 139,540 $ 68 $ 139,472 The Company has restricted cash of $1.2 million within Other assets, net as of June 30, 2017 and December 31, 2016 . The restricted cash is classified within Level 1. The following table presents information about the Company’s financial instruments that are measured at fair value as of December 31, 2016 and indicates the fair value hierarchy of the valuation (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents: Money market mutual funds $ 632 $ 632 $ — Total cash equivalents 632 632 — Short-term investments: Corporate bonds 54,658 — 54,658 U.S. agency securities 34,377 — 34,377 Asset-backed securities 26,433 — 26,433 U.S. Treasury securities 22,413 — 22,413 Total short-term investments 137,881 — 137,881 Cash equivalents and short-term investments $ 138,513 $ 632 $ 137,881 The convertible notes issued by the Company in August 2013 are shown on the accompanying consolidated balance sheets at their original issuance value, net of unamortized discount and issuance costs, and are not marked to market each period. The approximate fair value of the convertible notes as of June 30, 2017 and December 31, 2016 was $145.9 million and $143.8 million , respectively. The fair value of the convertible notes was determined using quoted market prices for similar securities, which, due to limited trading activity, are considered Level 2 in the fair value hierarchy. The Company did not have any other financial instruments or long-term debt measured at fair value as of June 30, 2017 and December 31, 2016 . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Convertible Notes In August 2013, the Company issued senior convertible notes (the “Notes”) in exchange for gross proceeds of $150.0 million . The Notes are governed by an Indenture, dated August 13, 2013 (the “Indenture”), between the Company and Wells Fargo Bank, National Association, as trustee. The Notes will mature on August 1, 2018, unless earlier repurchased or converted, and bear interest at a rate of 1.50% per year payable semi-annually in arrears on February 1 and August 1, beginning February 1, 2014. The Notes are convertible at an initial conversion rate of 61.6770 shares of common stock per $1,000 principal amount of Notes, which represents an initial conversion price of approximately $16.21 per share of common stock, subject to anti-dilution adjustments upon certain specified events as defined in the Indenture. Upon conversion, the Notes will be settled in cash, shares of the Company’s common stock, or any combination thereof, at the Company’s option. Prior to February 1, 2018, the Notes are convertible only upon the following circumstances: • during any calendar quarter commencing after December 31, 2013 (and only during such calendar quarter), if for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter, the last reported sale price of common stock on such trading day is greater than or equal to 130% of the applicable conversion price on such trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of common stock and the applicable conversion rate on each such trading day; or • upon the occurrence of specified corporate events described in the Indenture. Holders of the Notes may convert their Notes at any time on or after February 1, 2018, until the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the foregoing circumstances. The holders of the Notes may require the Company to repurchase all or a portion of their Notes at a cash repurchase price equal to 100% of the principal amount of the Notes being repurchased, plus accrued and unpaid interest, if any, upon a fundamental change as defined in the Indenture. In addition, upon certain events of default as defined in the Indenture, the trustee, or the holders of at least 25% in principal amount of the outstanding Notes may declare 100% of the principal amount of the Notes, plus accrued and unpaid interest, if any, on all the Notes to be due and payable. In case of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal of and accrued and unpaid interest on the Notes will automatically become due and payable. The Notes were not subject to conversion or repurchase at June 30, 2017 . To account for the Notes at issuance, the Company separated the Notes into debt and equity components pursuant to the accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion. The fair value of debt component was estimated using an interest rate for nonconvertible debt, with terms similar to the Notes, excluding the conversion feature. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The excess of the principal amount of the Notes over the fair value of the debt component was recorded as a debt discount and a corresponding increase in additional paid-in capital. The debt discount is accreted to interest expense over the term of the Notes using the interest method. The amount recorded to additional paid-in capital is not to be remeasured as long as it continues to meet the conditions of equity classification. Upon issuance of the $150.0 million of Notes, the Company recorded $111.5 million to debt and $38.5 million to additional paid-in capital. The Company incurred transaction costs of approximately $4.9 million related to the issuance of the Notes. In accounting for these costs, the Company allocated the costs to the debt and equity components in proportion to the allocation of proceeds from the issuance of the Notes to such components. Transaction costs allocated to the debt component of $3.6 million are recorded within Convertible notes, net , and amortized to interest expense over the term of the Notes. The transaction costs allocated to the equity component of $1.3 million were recorded to additional paid-in capital. The net carrying amount of the liability component of the Notes consists of the following (in thousands): June 30, 2017 December 31, 2016 Principal amount $ 150,000 $ 150,000 Unamortized debt discount (9,758 ) (13,928 ) Unamortized debt issuance costs (909 ) (1,297 ) Net carrying amount $ 139,333 $ 134,775 The following table presents the interest expense recognized related to the Notes (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Contractual interest expense at 1.5% per annum $ 563 $ 563 $ 1,125 $ 1,125 Amortization of debt issuance costs 197 183 388 362 Accretion of debt discount 2,119 1,961 4,169 3,886 Total $ 2,879 $ 2,707 $ 5,682 $ 5,373 The net proceeds from the Notes were approximately $145.1 million after payment of the initial purchasers' discount and offering expense. The Company used approximately $31.4 million of the net proceeds from the Notes to pay the cost of the Note Hedges described below, which was partially offset by $21.8 million of the proceeds from the Company's sale of the Warrants also described below. Note Hedges Concurrent with the issuance of the Notes, the Company entered into note hedges (“Note Hedges”) with certain bank counterparties, with respect to its common stock. The Company paid $31.4 million for the Note Hedges. The Note Hedges cover approximately 9.25 million shares of the Company's common stock at a strike price of $16.21 per share. The Note Hedges will expire upon the maturity of the Notes. The Note Hedges are intended to reduce the potential dilution to the Company's common stock upon conversion of the Notes and/or offset the cash payment in excess of the principal amount of the Notes the Company is required to make in the event that the market value per share of the Company's common stock at the time of exercise is greater than the conversion price of the Notes. Warrants Separately, the Company entered into warrant transactions, whereby it sold warrants to the same bank counterparties as the Note Hedges to acquire approximately 9.25 million shares of the Company's common stock at an initial strike price of $21.02 per share (“Warrants”), subject to anti-dilution adjustments. The Company received proceeds of approximately $21.8 million from the sale of the Warrants. If the fair value per share of the Company's common stock exceeds the strike price of the Warrants, the Warrants will have a dilutive effect on earnings per share, unless the Company elects, subject to certain conditions, to settle the Warrants in cash. The amounts paid and received for the Note Hedges and the Warrants have been recorded in additional paid-in capital. The fair value of the Note Hedges and the Warrants are not remeasured through earnings each reporting period. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company is subject to various legal proceedings and claims arising in the ordinary course of our business, including the cases discussed below. Although the results of litigation and claims cannot be predicted with certainty, the Company is currently not aware of any litigation or threats of litigation in which the final outcome could have a material adverse effect on our business, operating results, financial position, or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. The Company records a contingent liability when it is probable that a loss has been incurred and the amount is reasonably estimable in accordance with accounting for contingencies. As of June 30, 2017, the Company has accrued a $1.5 million reserve relating to our potential liability for currently pending disputes, reflected in Accrued Expenses in the accompanying condensed consolidated balance sheets. On August 23, 2016, the United States District Court for the Middle District of Tennessee granted conditional class certification in a lawsuit originally filed on September 21, 2015 by three former senior sales representatives. The lawsuit, Sarah Patton, et al v. ServiceSource Delaware, Inc., asserts a claim under the Fair Labor Standards Act alleging that certain sales account representatives and senior sales representatives in our Nashville location were not paid for all hours worked and were not properly paid for overtime hours worked. The complaint also asserts claims under Tennessee state law for breach of contract and unjust enrichment; however, the plaintiffs have not yet filed a motion to certify the state law breach of contract and unjust enrichment claims as a class action. The Company will continue to vigorously defend itself against these claims. |
Share Repurchase Program and St
Share Repurchase Program and Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Repurchase Program and Stock-Based Compensation | Share Repurchase Program and Stock-Based Compensation In August 2015, the Board authorized a stock repurchase program (the "program") with a maximum authorization to repurchase up to $30.0 million worth of common stock of the Company. The program expires in August 17, 2017. The aggregate amount available under the program was approximately $19.9 million as of June 30, 2017 . The share repurchase program does not obligate the Company to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. The Company cash settles with the program broker periodically and reflects any unsettled amounts as a current liability at each period end. No shares were repurchased under the program during the quarter ended June 30, 2017. The following table summarizes the consolidated stock-based compensation expense included in the condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Cost of revenue $ 294 $ 379 $ 584 $ 847 Sales and marketing 970 726 1,852 1,588 Research and development (35 ) 144 65 341 General and administrative 2,466 1,087 4,411 2,419 Total stock-based compensation $ 3,695 $ 2,336 $ 6,912 $ 5,195 The above table does not include $0.1 million of capitalized stock-based compensation related to internal-use software during the three months ended June 30, 2017 and 2016, respectively, and $0.2 million and $0.3 million for the six months ended June 30, 2017 and 2016, respectively. Equity Incentive Plan During the second quarter of 2017, the Company granted performance-based restricted stock unit awards under the Company’s 2011 Equity Incentive Plan to certain key executives (the “2017 PSU Awards”). For each 2017 PSU Award, a number of restricted stock units became eligible to vest based on the levels of achievement of the performance-based conditions, and those restricted stock units that became eligible to vest will vest 50% on the first anniversary of the grant date and 50% on the second anniversary of the grant date, except as otherwise provided under certain termination and change-in-control provisions in each award agreement. The aggregate target number of restricted stock units subject to the 2017 PSU Awards was 1.0 million with an aggregate grant date fair value of $3.7 million . The performance-based conditions are based upon the Company’s revenue and adjusted EBITDA performance in fiscal year 2017 against the target goals for such metrics under the Company’s 2017 corporate incentive plan (in each case, “Performance Achievement”), which will each be determined on the date the Company files its Annual Report on Form 10-K for fiscal year 2017. The target number of restricted stock units for each 2017 PSU Award will be divided equally between the two performance metrics. For each performance metric, the number of restricted stock units that become eligible to vest will be: (i) if the applicable Performance Achievement is less than 90% of the target revenue goal or less than 69% of the target EBITDA goal, no restricted stock units for such performance metric, (ii) if the applicable Performance Achievement is equal to 90% of the target revenue goal or 69% of the target EBITDA goal, 50% of the target number of restricted stock units for such performance metric, (iii) if the applicable Performance Achievement is equal to 100% of the target revenue and EBITDA goals, 100% of the target number of restricted stock units for such performance metric, or (iv) if the applicable Performance Achievement is at least 107% of the target revenue goal or 146% of the target EBITDA goal, 150% of the target number of restricted stock units for such performance metric. For each performance metric, if the applicable Performance Achievement falls between any of the thresholds (ii), (iii), and (iv) specified in the previous sentence, the number of restricted stock units that become eligible to vest for such performance metric will be determined via linear interpolation. + Under the time-based vesting condition, 50% of the restricted stock units that have become eligible to vest will vest on the first anniversary of the grant date, and 50% of the restricted stock units that have become eligible to vest will vest on the second anniversary of the grant date, except as otherwise provided under certain termination and change-in-control provisions in each award agreement governing a 2017 PSU Award. Such provisions will determine the number of restricted stock units that become eligible to vest and when and how many restricted stock units will actually vest in connection with the specified terminations of employment and changes in-control. Option and restricted stock activity under the 2011 Equity Incentive Plan for the six months ended June 30, 2017 was as follows (shares in thousands): Options Outstanding Restricted Stock Shares and Units Number Weighted- Number December 31, 2016 10,406 7,495 $ 4.63 4,644 Additional shares reserved under the 2011 equity incentive plan 3,527 — — — Granted (2,888 ) 103 3.75 2,786 PSU Additional Goal Shares Achieved (243 ) — — 243 Options exercised/ Restricted stock released — (10 ) 5.45 (738 ) RSU shares withheld for taxes 77 — — 77 Canceled/Forfeited 814 (405 ) 5.49 (409 ) June 30, 2017 11,693 7,183 $ 4.57 6,603 The weighted average grant-date fair value of employee stock options granted during the three months ended June 30, 2017 and 2016 was $1.73 and $1.88 per share, respectively, and $1.96 and $1.99 per share for the six months ended June 30, 2017 and 2016, respectively. The unamortized grant date fair value of both stock options and restricted stock awards totaled $23.0 million at June 30, 2017 . Potential shares of common stock that are not included in the determination of diluted net loss per share because they are anti-dilutive for the periods presented consist of weighted stock options, non-vested restricted stock and shares to be purchased under our Employee Stock Purchase Plan having an anti-dilutive effect of 7.9 million and 10.7 million shares for the three months ended June 30, 2017 and 2016, respectively, and 6.0 million and 10.8 million shares for the six months ended June 30, 2017 and 2016, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to taxation in the United States and various state and foreign jurisdictions. Earnings from non-U.S. activities are subject to local country income tax. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The primary difference between the effective tax rate and the federal statutory tax rate relates to the valuation allowances on the Company’s net operating losses and foreign tax rate differences. Income tax expense primarily consists of income and withholding taxes for foreign and state jurisdictions where the Company has profitable operations, as well as valuation allowance adjustments for certain U.S. tax jurisdictions. No tax benefit was provided for losses incurred in United States and Singapore because those losses are offset by a full valuation allowance. The tax years 2010 through 2017 remain subject to examination by federal, state and foreign tax authorities. The tax years 2010 through 2017 remain subject to examination by federal, state and foreign tax authorities. The gross amount of the Company's unrecognized tax benefits was $0.9 million as of June 30, 2017 and December 31, 2016 , none of which, if recognized, would affect the Company’s effective tax rate. |
Restructuring and Other
Restructuring and Other | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | Restructuring and Other In early May 2017, the Company announced a restructuring effort to better align our cost structure with current business and market conditions, including a headcount reduction and the reduction of office space in four locations. The restructuring plan is accounted for in accordance with ASC 420, Exit or Disposal Cost Obligations. The Company recognized restructuring and other charges of $ 5.7 million during the quarter. Severance and other employee costs include severance payments, related employee benefits and employee-related legal fees. Lease and other contract termination costs include charges related to lease consolidation and abandonment of spaces no longer utilized and cancellation of certain contracts with outside vendors. Asset impairments include charges related to leasehold improvements and furniture in spaces vacated or no longer in use. The Company expects to have restructuring and other expenses through the remainder of 2017, as restructuring activities targeted at reducing the overall cost structure of the business will continue over several quarters. Also, future cash outlays related to these restructuring activities are expected to total $2.0 million . These amounts are reflected in Accounts payable, Accrued compensation and benefits and Accrued expenses as of June 30, 2017. Restructuring and other reserve activities for the period ended June 30, 2017 is summarized as follows (in thousands): Severance and Other Employee Costs Lease and Other Contract Termination Costs Asset Impairments Total Restructuring and other liability at January 1, 2017 $ — $ — $ — $ — Restructuring and other charge 2,970 1,859 886 5,715 Cash paid (2,508 ) (306 ) — (2,814 ) Non-cash impairment charges — — (886 ) (886 ) Restructuring and other liability at June 30, 2017 $ 462 $ 1,553 $ — $ 2,015 |
Description of Business and B15
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited interim condensed consolidated financial statements (“condensed consolidated financial statements”) include the accounts of ServiceSource International, Inc. and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP” or “GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X, without audit. Accordingly, they do not include all of the information required by U.S. GAAP for annual financial statements. The unaudited condensed consolidated balance sheet as of December 31, 2016 has been derived from the Company's audited annual consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission ("SEC") on March 6, 2017. These condensed consolidated financial statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto for the year ended December 31, 2016 , included in our Annual Report on Form 10-K. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair statement of the Company's financial position, operating results, and cash flows for the interim periods presented. Preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Also, the results for the interim periods are not necessarily indicative of results for the entire year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) which amended the existing FASB Accounting Standards Codification. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The standard also specifies that the incremental costs of obtaining a contract with a customer and the costs of fulfilling a contract with a customer (if those costs are not within the scope of another Topic or Sub-Topic) would be deferred and recognized over the appropriate period of contract performance if they are expected to be recovered. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The FASB recently issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method, also known as the cumulative catch-up transition method). The updates are effective for the Company for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for annual periods beginning after December 15, 2016. The Company continues to assess the impacts of the standard, and has not yet determined whether the standard will have a material impact on our consolidated financial statements. However, we currently believe the most significant impact is from the timing of recognition of sales commission expenses, which upon adoption will be recognized as costs over a period of time instead of immediately. We are also in the process of assessing the impact of the new standard on certain of our contracts that include performance-based fees. We currently recognize such fees in the period when the performance criteria have been met; however, under the new standard we would estimate the variable fees and recognize amounts for which it is probable that a significant reversal would not occur. For certain contracts, this could result in acceleration of recognition of the performance-based fees. We do not currently expect our recurring revenue management fees, based on a fixed percentage of overall sales value associated with the service contracts, to be significantly impacted by the new standard. We will adopt the standard in the first quarter of 2018 and preliminarily expect to use the modified prospective method. However, we are continuing to evaluate the impact of the standard, and our adoption method is subject to change. We expect to complete our assessment process, including impacts on our processes, systems and financial statement disclosures, by the end of the third quarter of 2017. In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842). This standard requires entities that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The standard is effective for fiscal years and the interim periods within those fiscal years beginning after December 15, 2018. The guidance is required to be applied by the modified retrospective transition approach. Early adoption is permitted. The Company continues to assess the impact of the adoption of this authoritative guidance on its consolidated financial statements. |
Reclassifications | Reclassifications Amounts shown in Financing activities - Minimum tax withholding requirement in the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2016 have been reclassified from Operating activities - Prepaid expenses and other, to reflect the current period presentation as a result of the adoption of ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which requires shares withheld for employee taxes to be reclassified from operating activities to financing activities. |
Cash and Cash Equivalents | Cash equivalents consist of highly liquid fixed-income investments with original maturities of three months or less at the time of purchase, including money market funds. Short-term investments consist of readily marketable securities with a remaining maturity of more than three months from time of purchase. The Company classifies all of its cash equivalents and short-term investments as “available for sale,” as these investments are free of trading restrictions and are available for use in the Company's daily operations. These marketable securities are carried at fair value, with the unrealized gains and losses, net of tax, reported as accumulated other comprehensive income and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized. When the Company determines that other-than-temporary declines in fair value have occurred, the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are determined using the specific identification method. |
Fair Value of Financial Instruments | The Company measures certain financial instruments at fair value on a recurring basis. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities. Level 2 valuations are based on inputs that are observable, either directly or indirectly, other than quoted prices included within Level 1. Such inputs used in determining fair value for Level 2 valuations include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 valuations are based on information that is unobservable and significant to the overall fair value measurement. All of the Company’s cash equivalents and short-term investments are classified within Level 1 or Level 2. |
Debt | To account for the Notes at issuance, the Company separated the Notes into debt and equity components pursuant to the accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion. The fair value of debt component was estimated using an interest rate for nonconvertible debt, with terms similar to the Notes, excluding the conversion feature. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The excess of the principal amount of the Notes over the fair value of the debt component was recorded as a debt discount and a corresponding increase in additional paid-in capital. The debt discount is accreted to interest expense over the term of the Notes using the interest method. The amount recorded to additional paid-in capital is not to be remeasured as long as it continues to meet the conditions of equity classification. |
Commitments and Contingencies | The Company is subject to various legal proceedings and claims arising in the ordinary course of our business, including the cases discussed below. Although the results of litigation and claims cannot be predicted with certainty, the Company is currently not aware of any litigation or threats of litigation in which the final outcome could have a material adverse effect on our business, operating results, financial position, or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. The Company records a contingent liability when it is probable that a loss has been incurred and the amount is reasonably estimable in accordance with accounting for contingencies. |
Income Taxes | The Company is subject to taxation in the United States and various state and foreign jurisdictions. Earnings from non-U.S. activities are subject to local country income tax. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The primary difference between the effective tax rate and the federal statutory tax rate relates to the valuation allowances on the Company’s net operating losses and foreign tax rate differences. Income tax expense primarily consists of income and withholding taxes for foreign and state jurisdictions where the Company has profitable operations, as well as valuation allowance adjustments for certain U.S. tax jurisdictions. |
Cash, Cash Equivalents and Sh16
Cash, Cash Equivalents and Short-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash and Cash Equivalents and Short-Term Investments | Cash and cash equivalents and short-term investments consisted of the following as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 39,596 $ — $ — $ 39,596 Cash equivalents: Money market mutual funds 68 — — 68 Total cash and cash equivalents 39,664 — — 39,664 Short-term investments: Corporate bonds 55,404 60 (115 ) 55,349 U.S. agency securities 34,649 1 (245 ) 34,405 Asset-backed securities 23,852 7 (29 ) 23,830 U.S. Treasury securities 26,150 — (262 ) 25,888 Total short-term investments 140,055 68 (651 ) 139,472 Cash, cash equivalents and short-term investments $ 179,719 $ 68 $ (651 ) $ 179,136 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 47,060 $ — $ — $ 47,060 Cash equivalents: Money market mutual funds 632 — — 632 Total cash and cash equivalents 47,692 — — 47,692 Short-term investments: Corporate bonds 54,827 19 (188 ) 54,658 U.S. agency securities 34,658 — (281 ) 34,377 Asset-backed securities 26,431 25 (23 ) 26,433 U.S. Treasury securities 22,701 — (288 ) 22,413 Total short-term investments 138,617 44 (780 ) 137,881 Cash, cash equivalents and short-term investments $ 186,309 $ 44 $ (780 ) $ 185,573 |
Summary of Cost and Estimated Fair Value of Short-Term Fixed Income Securities | The following table summarizes the amortized cost and estimated fair value of money market mutual funds and short-term fixed income securities classified as short-term investments based on stated maturities as of June 30, 2017 (in thousands): Amortized Cost Estimated Fair Value Less than 1 year $ 16,105 $ 16,108 Due in 1 to 3 years 124,018 123,432 Total $ 140,123 $ 139,540 |
Fair Value of Financial Instr17
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Measured at Fair Value | The following table presents information about the Company’s financial instruments that are measured at fair value as of December 31, 2016 and indicates the fair value hierarchy of the valuation (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents: Money market mutual funds $ 632 $ 632 $ — Total cash equivalents 632 632 — Short-term investments: Corporate bonds 54,658 — 54,658 U.S. agency securities 34,377 — 34,377 Asset-backed securities 26,433 — 26,433 U.S. Treasury securities 22,413 — 22,413 Total short-term investments 137,881 — 137,881 Cash equivalents and short-term investments $ 138,513 $ 632 $ 137,881 The following table presents information about the Company’s financial instruments that are measured at fair value as of June 30, 2017 and indicates the fair value hierarchy of the valuation (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Cash equivalents: Money market mutual funds $ 68 $ 68 $ — Total cash equivalents 68 68 — Short-term investments: Corporate bonds 55,349 — 55,349 U.S. agency securities 34,405 — 34,405 Asset-backed securities 23,830 — 23,830 U.S. Treasury securities 25,888 — 25,888 Total short-term investments 139,472 — 139,472 Cash equivalents and short-term investments $ 139,540 $ 68 $ 139,472 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Net Carrying Amount of Liability Component | The net carrying amount of the liability component of the Notes consists of the following (in thousands): June 30, 2017 December 31, 2016 Principal amount $ 150,000 $ 150,000 Unamortized debt discount (9,758 ) (13,928 ) Unamortized debt issuance costs (909 ) (1,297 ) Net carrying amount $ 139,333 $ 134,775 |
Schedule of Interest Expense on Notes Recognized | The following table presents the interest expense recognized related to the Notes (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Contractual interest expense at 1.5% per annum $ 563 $ 563 $ 1,125 $ 1,125 Amortization of debt issuance costs 197 183 388 362 Accretion of debt discount 2,119 1,961 4,169 3,886 Total $ 2,879 $ 2,707 $ 5,682 $ 5,373 |
Share Repurchase Program and 19
Share Repurchase Program and Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table summarizes the consolidated stock-based compensation expense included in the condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Cost of revenue $ 294 $ 379 $ 584 $ 847 Sales and marketing 970 726 1,852 1,588 Research and development (35 ) 144 65 341 General and administrative 2,466 1,087 4,411 2,419 Total stock-based compensation $ 3,695 $ 2,336 $ 6,912 $ 5,195 |
Summary of Option and Restricted Stock Activity | Option and restricted stock activity under the 2011 Equity Incentive Plan for the six months ended June 30, 2017 was as follows (shares in thousands): Options Outstanding Restricted Stock Shares and Units Number Weighted- Number December 31, 2016 10,406 7,495 $ 4.63 4,644 Additional shares reserved under the 2011 equity incentive plan 3,527 — — — Granted (2,888 ) 103 3.75 2,786 PSU Additional Goal Shares Achieved (243 ) — — 243 Options exercised/ Restricted stock released — (10 ) 5.45 (738 ) RSU shares withheld for taxes 77 — — 77 Canceled/Forfeited 814 (405 ) 5.49 (409 ) June 30, 2017 11,693 7,183 $ 4.57 6,603 |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Reserve Activities | Restructuring and other reserve activities for the period ended June 30, 2017 is summarized as follows (in thousands): Severance and Other Employee Costs Lease and Other Contract Termination Costs Asset Impairments Total Restructuring and other liability at January 1, 2017 $ — $ — $ — $ — Restructuring and other charge 2,970 1,859 886 5,715 Cash paid (2,508 ) (306 ) — (2,814 ) Non-cash impairment charges — — (886 ) (886 ) Restructuring and other liability at June 30, 2017 $ 462 $ 1,553 $ — $ 2,015 |
Description of Business and B21
Description of Business and Basis of Presentation - Narrative (Details) | 6 Months Ended |
Jun. 30, 2017language | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of languages (more than) | 35 |
Years of operating experience | 15 years |
Cash, Cash Equivalents and Sh22
Cash, Cash Equivalents and Short-Term Investments - Summary of Cash and Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents, Amortized Cost | $ 39,664 | $ 47,692 | $ 55,296 | $ 72,334 |
Total cash and cash equivalents, Unrealized Gains | 0 | 0 | ||
Total cash and cash equivalents, Unrealized Losses | 0 | 0 | ||
Total cash and cash equivalents, Estimated Fair Value | 39,664 | 47,692 | ||
Total short-term investments, Amortized Cost | 140,055 | 138,617 | ||
Total short-term investments, Unrealized Gains | 68 | 44 | ||
Total short-term investments, Unrealized Losses | (651) | (780) | ||
Total short-term investments, Estimated Fair Value | 139,472 | 137,881 | ||
Cash, cash equivalents and short-term investments, Amortized Cost | 179,719 | 186,309 | ||
Cash, cash equivalents and short-term investments, Unrealized Gains | 68 | 44 | ||
Cash, cash equivalents and short-term investments, Unrealized Losses | (651) | (780) | ||
Cash, cash equivalents and short-term investments, Estimated Fair Value | 179,136 | 185,573 | ||
Corporate bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total short-term investments, Amortized Cost | 55,404 | 54,827 | ||
Total short-term investments, Unrealized Gains | 60 | 19 | ||
Total short-term investments, Unrealized Losses | (115) | (188) | ||
Total short-term investments, Estimated Fair Value | 55,349 | 54,658 | ||
U.S. agency securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total short-term investments, Amortized Cost | 34,649 | 34,658 | ||
Total short-term investments, Unrealized Gains | 1 | 0 | ||
Total short-term investments, Unrealized Losses | (245) | (281) | ||
Total short-term investments, Estimated Fair Value | 34,405 | 34,377 | ||
Asset-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total short-term investments, Amortized Cost | 23,852 | 26,431 | ||
Total short-term investments, Unrealized Gains | 7 | 25 | ||
Total short-term investments, Unrealized Losses | (29) | (23) | ||
Total short-term investments, Estimated Fair Value | 23,830 | 26,433 | ||
U.S. Treasury securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total short-term investments, Amortized Cost | 26,150 | 22,701 | ||
Total short-term investments, Unrealized Gains | 0 | 0 | ||
Total short-term investments, Unrealized Losses | (262) | (288) | ||
Total short-term investments, Estimated Fair Value | 25,888 | 22,413 | ||
Cash | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents, Amortized Cost | 39,596 | 47,060 | ||
Total cash and cash equivalents, Unrealized Gains | 0 | 0 | ||
Total cash and cash equivalents, Unrealized Losses | 0 | 0 | ||
Total cash and cash equivalents, Estimated Fair Value | 39,596 | 47,060 | ||
Money market mutual funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents, Amortized Cost | 68 | 632 | ||
Total cash and cash equivalents, Unrealized Gains | 0 | 0 | ||
Total cash and cash equivalents, Unrealized Losses | 0 | 0 | ||
Total cash and cash equivalents, Estimated Fair Value | $ 68 | $ 632 |
Cash, Cash Equivalents and Sh23
Cash, Cash Equivalents and Short-Term Investments - Summary of Cost and Estimated Fair Values of Short Term Fixed Income Securities (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Amortized Cost | |
Less than 1 year | $ 16,105 |
Due in 1 to 3 years | 124,018 |
Total | 140,123 |
Estimated Fair Value | |
Less than 1 year | 16,108 |
Due in 1 to 3 years | 123,432 |
Total | $ 139,540 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments - Summary of Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Short-term investments: | ||
Total short-term investments | $ 139,472 | $ 137,881 |
Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Total cash equivalents | 68 | 632 |
Short-term investments: | ||
Total short-term investments | 139,472 | 137,881 |
Cash equivalents and short-term investments | 139,540 | 138,513 |
Fair Value, Measurements, Recurring | Money market mutual funds | ||
Cash equivalents: | ||
Total cash equivalents | 68 | 632 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Short-term investments: | ||
Total short-term investments | 55,349 | 54,658 |
Fair Value, Measurements, Recurring | U.S. agency securities | ||
Short-term investments: | ||
Total short-term investments | 34,405 | 34,377 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Short-term investments: | ||
Total short-term investments | 23,830 | 26,433 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Short-term investments: | ||
Total short-term investments | 25,888 | 22,413 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Cash equivalents: | ||
Total cash equivalents | 68 | 632 |
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Cash equivalents and short-term investments | 68 | 632 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market mutual funds | ||
Cash equivalents: | ||
Total cash equivalents | 68 | 632 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. agency securities | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Cash equivalents: | ||
Total cash equivalents | 0 | 0 |
Short-term investments: | ||
Total short-term investments | 139,472 | 137,881 |
Cash equivalents and short-term investments | 139,472 | 137,881 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money market mutual funds | ||
Cash equivalents: | ||
Total cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Short-term investments: | ||
Total short-term investments | 55,349 | 54,658 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. agency securities | ||
Short-term investments: | ||
Total short-term investments | 34,405 | 34,377 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Short-term investments: | ||
Total short-term investments | 23,830 | 26,433 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Short-term investments: | ||
Total short-term investments | $ 25,888 | $ 22,413 |
Fair Value of Financial Instr25
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Significant Other Observable Inputs (Level 2) | Convertible Notes Payable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of convertible notes | $ 145.9 | $ 143.8 |
Other Assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash | $ 1.2 | $ 1.2 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | ||
Aug. 31, 2013USD ($)d$ / sharesshares | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Payments of convertible note hedges | $ 31,400 | ||
Shares covered under note hedges (in shares) | shares | 9,250 | ||
Common stock strike price (in dollars per share) | $ / shares | $ 16.21 | ||
Warrant | |||
Debt Instrument [Line Items] | |||
Proceeds from the issuance of warrants | $ 21,800 | ||
Warrants sold to acquire shares (in shares) | shares | 9,250 | ||
Exercise price of warrant (in dollars per share) | $ / shares | $ 21.02 | ||
Senior Convertible Notes | |||
Debt Instrument [Line Items] | |||
Proceeds from issuance of debt | $ 150,000 | ||
Interest rate | 1.50% | 1.50% | |
Conversion ratio | 0.061677 | ||
Conversion price (in dollars per share) | $ / shares | $ 16.21 | ||
Threshold consecutive trading days | d | 5 | ||
Threshold percentage of stock price trigger | 98.00% | ||
Threshold business days | 5 years | ||
Cash repurchase price | 100.00% | ||
Minimum percent held in principal amount of outstanding notes to declare all notes to be due and payable | 25.00% | ||
Debt | $ 111,500 | $ 139,333 | $ 134,775 |
Additional paid in capital | 38,500 | ||
Transaction costs, additional paid in capital | 4,900 | ||
Net proceeds from the Notes | 145,100 | ||
Senior Convertible Notes | Note Hedges | |||
Debt Instrument [Line Items] | |||
Payments of convertible note hedges | 31,400 | ||
Senior Convertible Notes | Warrant | |||
Debt Instrument [Line Items] | |||
Proceeds from the issuance of warrants | 21,800 | ||
Senior Convertible Notes | Other Assets | |||
Debt Instrument [Line Items] | |||
Debt component of transaction costs, gross | 3,600 | ||
Senior Convertible Notes | Additional Paid-in Capital | |||
Debt Instrument [Line Items] | |||
Transaction costs, additional paid in capital | $ 1,300 | ||
Senior Convertible Notes | After December 31, 2013 | |||
Debt Instrument [Line Items] | |||
Threshold trading days | d | 20 | ||
Threshold consecutive trading days | d | 30 | ||
Threshold percentage of stock price trigger | 130.00% |
Debt - Schedule of Net Carrying
Debt - Schedule of Net Carrying Amount of Liability Component (Details) - Senior Convertible Notes - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Aug. 31, 2013 |
Liability Component | |||
Principal amount | $ 150,000 | $ 150,000 | |
Unamortized debt discount | (9,758) | (13,928) | |
Unamortized debt issuance costs | (909) | (1,297) | |
Net carrying amount | $ 139,333 | $ 134,775 | $ 111,500 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense on Notes Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Aug. 31, 2013 | |
Interest Expense | |||||
Total | $ 2,646 | $ 1,700 | $ 4,717 | $ 3,209 | |
Senior Convertible Notes | |||||
Interest Expense | |||||
Interest rate | 1.50% | 1.50% | 1.50% | ||
Contractual interest expense at 1.5% per annum | $ 563 | 563 | $ 1,125 | 1,125 | |
Amortization of debt issuance costs | 197 | 183 | 388 | 362 | |
Accretion of debt discount | 2,119 | 1,961 | 4,169 | 3,886 | |
Total | $ 2,879 | $ 2,707 | $ 5,682 | $ 5,373 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Aug. 23, 2016plaintiff | Jun. 30, 2017USD ($) |
Operating Leased Assets [Line Items] | ||
Loss contingency accrual | $ | $ 1.5 | |
Sarah Patton, et al v. ServiceSource Delaware, Inc | Pending Litigation | ||
Operating Leased Assets [Line Items] | ||
Number of plaintiffs | plaintiff | 3 |
Share Repurchase Program and 30
Share Repurchase Program and Stock-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Aug. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount (up to) | $ 30,000,000 | ||||
Stock repurchase program, remaining authorized amount | $ 19,900,000 | $ 19,900,000 | |||
Stock repurchased during period (in shares) | 0 | ||||
Capitalized stock-based compensation related to internal-use software | $ 100,000 | $ 100,000 | $ 200,000 | $ 300,000 | |
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ 1.73 | $ 1.88 | $ 1.96 | $ 1.99 | |
Grant date fair value | $ 23,000,000 | $ 23,000,000 | |||
Antidilutive shares excluded from diluted earnings per share calculation (in shares) | 7,900,000 | 10,700,000 | 6,000,000 | 10,800,000 | |
Restricted Stock Outstanding | Year One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% | ||||
Restricted Stock Outstanding | Year Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% | ||||
Performance Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance-based restricted stock units subject for PSU award (in shares) | 1,000,000 | ||||
Performance-based restricted stock units granted, fair value | $ 3,700,000 | ||||
Percentage of performance achievement target goal, condition one | 90.00% | ||||
Percentage of performance achievement target EBITDA goal, condition one | 69.23% | ||||
Percentage of performance achievement target goal, condition two | 90.31% | ||||
Percentage of performance achievement target EBITDA goal, condition two | 69.23% | ||||
Percentage of restricted stock units eligible to vest, condition two | 50.00% | ||||
Percentage of performance achievement target goal, condition three | 100.00% | ||||
Percentage of restricted stock units eligible to vest, condition three | 100.00% | ||||
Percentage of performance achievement target goal, condition four | 106.59% | ||||
Percentage of performance achievement target EBITDA goal, condition four | 146.15% | ||||
Percentage of restricted stock units eligible to vest, condition four | 150.00% | ||||
Performance Restricted Stock | Year One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% | ||||
Performance Restricted Stock | Year Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% |
Share Repurchase Program and 31
Share Repurchase Program and Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 3,695 | $ 2,336 | $ 6,912 | $ 5,195 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 294 | 379 | 584 | 847 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | 970 | 726 | 1,852 | 1,588 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | (35) | 144 | 65 | 341 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation | $ 2,466 | $ 1,087 | $ 4,411 | $ 2,419 |
Share Repurchase Program and 32
Share Repurchase Program and Stock-Based Compensation - Summary of Option and Restricted Stock Activity (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Options Outstanding, Number of Shares | |
Shares and Units Available for Grant, Beginning balance (in shares) | 10,406 |
Additional shares reserved under the 2011 equity incentive plan (in shares) | 3,527 |
Shares and units available for grant, granted (in shares) | (2,888) |
Shares and Units Available for Grant, PSU Additional Goal Shares Achieved (in shares) | (243) |
Shares and Units Available for Grant, Options exercised/ Restricted stock released (in shares) | 0 |
Shares and Units Available for Grant, RSU shares withheld for taxes (in shares) | 77 |
Shares and Units Available for Grant, Options Outstanding, Number of Shares (in shares) | 0 |
Shares and Units Available for Grant, Canceled/Forfeited (in shares) | 814 |
Shares and Units Available for Grant, Ending balance (in shares) | 11,693 |
Options Outstanding, Options, Weighted Average Exercise Price | |
Options Outstanding, Weighted Average Exercise Price, RSU shares withheld for taxes (in dollars per share) | $ / shares | $ 0 |
Employee Stock Option | |
Options Outstanding, Number of Shares | |
Options Outstanding, Number of Shares, Beginning Balance (in shares) | 7,495 |
Additional shares reserved under the 2011 equity incentive plan (in shares) | 0 |
Options Outstanding, Number of Shares, Granted (in shares) | 103 |
Options Outstanding, Number of Shares, PSU Additional Goal Shares Achieved (in shares) | 0 |
Options Outstanding, Number of Shares, Options exercised/ Restricted stock released (in shares) | (10) |
Options Outstanding, Number of Shares, Canceled /Forfeited (in shares) | (405) |
Options Outstanding, Number of Shares, Ending Balance (in shares) | 7,183 |
Options Outstanding, Options, Weighted Average Exercise Price | |
Options Outstanding, Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ / shares | $ 4.63 |
Options Outstanding, Weighted Average Exercise Price, Granted (in dollars per share) | $ / shares | 3.75 |
Options Outstanding, Weighted Average Exercise Price, Options exercised/ Restricted stock released (in dollars per share) | $ / shares | 5.45 |
Options Outstanding, Weighted Average Exercise Price, Canceled/Forfeited (in dollars per share) | $ / shares | 5.49 |
Options Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ / shares | $ 4.57 |
Restricted Stock Outstanding | |
Options Outstanding, Number of Shares | |
Restricted Stock Outstanding Number of Shares, Beginning balance (in shares) | 4,644 |
Additional shares reserved under the 2011 equity incentive plan (in shares) | 0 |
Restricted Stock Outstanding Number of Shares, Granted (in shares) | 2,786 |
Restricted Stock Outstanding, Number of Shares, PSU Additional Goal Shares Achieved (in shares) | 243 |
Restricted Stock Outstanding Number of Shares, Options exercised/ Restricted stock released (in shares) | (738) |
Shares and Units Available for Grant, Restricted Stock Outstanding, Number of Shares (in shares) | 77 |
Restricted Stock Outstanding Number of Shares, Canceled /Forfeited (in shares) | (409) |
Restricted Stock Outstanding Number of Shares, Ending balance (in shares) | 6,603 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 0.9 | $ 0.9 |
Restructuring and Other - Narra
Restructuring and Other - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2017location | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Restructuring and Related Activities [Abstract] | |||||
Number of locations where reduction of headcount and office spaces took place (location) | location | 4 | ||||
Restructuring and other charge | $ 5,715 | $ 0 | $ 5,715 | $ 0 | |
Expected future cash outlays related to restructuring | $ 2,000 | $ 2,000 |
Restructuring and Other - Sched
Restructuring and Other - Schedule of Restructuring and Other Reserve Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 0 | |||
Restructuring and other charge | $ 5,715 | $ 0 | 5,715 | $ 0 |
Cash paid | (2,814) | |||
Non-cash impairment charges | (886) | |||
Ending Balance | 2,015 | 2,015 | ||
Severance and Other Employee Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | |||
Restructuring and other charge | 2,970 | |||
Cash paid | (2,508) | |||
Non-cash impairment charges | 0 | |||
Ending Balance | 462 | 462 | ||
Lease and Other Contract Termination Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | |||
Restructuring and other charge | 1,859 | |||
Cash paid | (306) | |||
Non-cash impairment charges | 0 | |||
Ending Balance | 1,553 | 1,553 | ||
Asset Impairments | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | |||
Restructuring and other charge | 886 | |||
Cash paid | 0 | |||
Non-cash impairment charges | (886) | |||
Ending Balance | $ 0 | $ 0 |