Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SREV | |
Entity Registrant Name | SERVICESOURCE INTERNATIONAL, INC. | |
Entity Central Index Key | 0001310114 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Emerging Growth Company | false | |
Small Business | false | |
Entity Common stock, shares outstanding | 93,307,941 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 24,807 | $ 26,535 |
Accounts receivable, net | 50,935 | 54,284 |
Prepaid expenses and other | 7,079 | 5,653 |
Total current assets | 82,821 | 86,472 |
Property and equipment, net | 35,744 | 36,593 |
Contract acquisition costs | 2,371 | 2,660 |
Right-of-use assets | 36,944 | |
Goodwill | 6,334 | 6,334 |
Other assets | 4,823 | 4,521 |
Total assets | 169,037 | 136,580 |
Current liabilities: | ||
Accounts payable | 2,129 | 2,424 |
Accrued expenses | 2,429 | 3,380 |
Accrued compensation and benefits | 17,657 | 15,509 |
Operating lease liabilities | 8,504 | |
Other current liabilities | 5,993 | 6,894 |
Total current liabilities | 36,712 | 28,207 |
Operating lease liabilities, net of current portion | 30,918 | |
Other long-term liabilities | 3,512 | 6,540 |
Total liabilities | 71,142 | 34,747 |
Commitments and Contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 20,000 shares authorized and none issued and outstanding | 0 | 0 |
Common stock; $0.0001 par value; 1,000,000 shares authorized; 93,263 shares issued and 93,142 shares outstanding as of March 31, 2019; 92,895 shares issued and 92,774 shares outstanding as of December 31, 2018 | 9 | 9 |
Treasury stock | (441) | (441) |
Additional paid-in capital | 370,951 | 369,246 |
Accumulated deficit | (273,102) | (267,383) |
Accumulated other comprehensive income | 478 | 402 |
Total stockholders’ equity | 97,895 | 101,833 |
Total liabilities and stockholders’ equity | $ 169,037 | $ 136,580 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
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) | 93,263,000 | 92,895,000 |
Common stock, shares outstanding (in shares) | 93,142,000 | 92,774,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net revenue | $ 55,511 | $ 58,585 |
Cost of revenue | 39,476 | 41,724 |
Gross profit | 16,035 | 16,861 |
Operating expenses: | ||
Sales and marketing | 7,949 | 9,238 |
Research and development | 1,263 | 1,516 |
General and administrative | 10,982 | 12,889 |
Restructuring and other related costs | 1,058 | 53 |
Total operating expenses | 21,252 | 23,696 |
Loss from operations | (5,217) | (6,835) |
Interest and other expense, net | (490) | (2,846) |
Impairment loss on investment securities | 0 | (1,958) |
Loss before income taxes | (5,707) | (11,639) |
Provision for income tax expense | (12) | (13) |
Net loss | $ (5,719) | $ (11,652) |
Net loss per common share | ||
Basic and diluted (in dollars per share) | $ (0.06) | $ (0.13) |
Weighted-average common shares outstanding: | ||
Basic and diluted (in shares) | 92,914 | 90,358 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net loss | $ (5,719) | $ (11,652) |
Other comprehensive income | ||
Net change in available for sale debt securities | 0 | 1,253 |
Foreign currency translation adjustments | 76 | 274 |
Other comprehensive income | 76 | 1,527 |
Comprehensive loss | (5,643) | (10,125) |
Parent | ||
Other comprehensive income | ||
Unrealized loss on short-term investments | 0 | (705) |
Reclassification adjustment for impairment loss included in net loss | $ 0 | $ 1,958 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Shares/Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of ASC 606 - initial adoption | $ 3,709 | $ 3,709 | ||||
Stockholders' equity, adjusted balance | 115,818 | $ 8 | $ (441) | $ 359,347 | (242,498) | $ (598) |
Shares, beginning balance at Dec. 31, 2017 | 90,380 | (121) | ||||
Stockholders' equity, beginning balance at Dec. 31, 2017 | 112,109 | $ 8 | $ (441) | 359,347 | (246,207) | (598) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (11,652) | (11,652) | ||||
Other comprehensive income | 1,527 | 1,527 | ||||
Stock-based compensation | 3,223 | 3,223 | ||||
Issuance of common stock, restricted stock units (in shares) | 84 | |||||
Issuance of common stock, restricted stock units | 0 | |||||
Proceeds from the exercise of stock options and employee stock purchase plan (in shares) | 119 | |||||
Proceeds from the exercise of stock options and employee stock purchase plan | 353 | 353 | ||||
Net cash paid for payroll taxes on restricted stock unit releases | (53) | (53) | ||||
Shares, ending balance at Mar. 31, 2018 | 90,583 | (121) | ||||
Stockholders' equity, ending balance at Mar. 31, 2018 | 109,216 | $ 8 | $ (441) | 362,870 | (254,150) | 929 |
Shares, beginning balance at Dec. 31, 2018 | 92,895 | (121) | ||||
Stockholders' equity, beginning balance at Dec. 31, 2018 | 101,833 | $ 9 | $ (441) | 369,246 | (267,383) | 402 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (5,719) | (5,719) | ||||
Other comprehensive income | 76 | 76 | ||||
Stock-based compensation | 1,564 | 1,564 | ||||
Issuance of common stock, restricted stock units (in shares) | 229 | |||||
Issuance of common stock, restricted stock units | 0 | |||||
Proceeds from the exercise of stock options and employee stock purchase plan (in shares) | 139 | |||||
Proceeds from the exercise of stock options and employee stock purchase plan | 141 | 141 | ||||
Shares, ending balance at Mar. 31, 2019 | 93,263 | (121) | ||||
Stockholders' equity, ending balance at Mar. 31, 2019 | $ 97,895 | $ 9 | $ (441) | $ 370,951 | $ (273,102) | $ 478 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net loss | $ (5,719) | $ (11,652) | |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation and amortization | 3,285 | 4,803 | |
Amortization of debt discount and issuance costs | 18 | 2,421 | |
Amortization of contract acquisition costs | 400 | 426 | |
Amortization of premium on short-term investments | 0 | 115 | |
Amortization of right-of-use assets | 2,239 | 0 | |
Stock-based compensation | 1,570 | 3,111 | |
Restructuring and other related costs | 1,041 | 196 | |
Impairment loss on investment securities | 0 | 1,958 | $ 2,000 |
Other | 0 | 80 | |
Accounts receivable, net | 3,258 | 6,923 | |
Prepaid expenses and other assets | (1,277) | (1,523) | |
Contract acquisition costs | (108) | (430) | |
Accounts payable | (18) | (2,809) | |
Accrued compensation and benefits | 1,094 | (2,654) | |
Operating lease liabilities | (2,338) | ||
Accrued expenses | (1,023) | (367) | |
Other liabilities | (338) | 1 | |
Net cash provided by operating activities | 2,084 | 599 | |
Cash flows from investing activities: | |||
Acquisition of property and equipment | (2,898) | (3,469) | |
Purchases of short-term investments | 0 | 7 | |
Sales of short-term investments | 0 | 2,064 | |
Maturities of short-term investments | 0 | 825 | |
Net cash used in investing activities | (2,898) | (573) | |
Cash flows from financing activities: | |||
Repayment on finance lease obligations | (190) | (43) | |
Proceeds from issuance of common stock | 141 | 353 | |
Payments related to minimum tax withholdings on restricted stock unit releases | 0 | (53) | |
Net cash (used in) provided by financing activities | (49) | 257 | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 185 | 78 | |
Net change in cash and cash equivalents and restricted cash | (678) | 361 | |
Cash and cash equivalents and restricted cash, beginning of period | 27,779 | 52,633 | 52,633 |
Cash and cash equivalents and restricted cash, end of period | 27,101 | 52,994 | $ 27,779 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 66 | 1,146 | |
Supplemental disclosures of non-cash activities: | |||
Acquisition of property and equipment accrued in accounts payable and accrued expenses | 208 | 196 | |
ASU 2014-09 | |||
Supplemental disclosures of non-cash activities: | |||
Increase in contract acquisition costs and benefit to accumulated deficit related to adoption of ASC 606 | 0 | 3,346 | |
Increase in prepaid expenses and other, other liabilities and benefit to accumulated deficit related to adoption of ASC 606 | 0 | $ 363 | |
ASU 2016-02 | |||
Supplemental disclosures of non-cash activities: | |||
Increase in operating lease liabilities related to the adoption of ASC 842 | 41,760 | ||
Increase in right-of-use assets related to the adoption of ASC 842 | 39,183 | ||
Decrease in prepaids and other assets related to the adoption of ASC 842 | (749) | ||
Decrease in other liabilities related to the adoption of ASC 842 | $ (3,308) |
The Company
The Company | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
The Company | The Company ServiceSource International, Inc. is a global leader in outsourced, performance-based customer success and revenue growth solutions. Through our people, processes and technology, we grow and retain revenue on behalf of our clients — some of the world’s leading business-to-business companies — in more than 45 languages. Our solutions help our clients strengthen their customer relationships, drive improved customer adoption, expansion and retention and minimize churn. Our technology platform and best-practice business processes combined with our highly-trained, client-focused revenue delivery professionals and data from 20 years of operating experience enable us to provide our clients greater value for our customer success services than attained by our clients' in-house customer success teams. “ServiceSource,” “the Company,” “we,” “us,” or “our”, as used herein, refer to ServiceSource International, Inc. and its wholly-owned subsidiaries, unless the context indicates otherwise. 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 earns revenue through its professional services teams, who assist clients with data optimization. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying interim unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all the information required by GAAP for annual financial statements. The unaudited Consolidated Balance Sheet as of December 31, 2018 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, 2018 filed with the Securities and Exchange Commission on February 28, 2019 . In the opinion of management, these Consolidated Financial Statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair presentation of the Company’s financial position, operating results, and cash flows for the interim periods presented. These Consolidated Financial Statements and accompanying notes should be read in conjunction with our audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2018 , included in our annual report on Form 10-K. Interim results are not necessarily indicative of results for the entire year. Principles of Consolidation The accompanying unaudited interim Consolidated Financial Statements include the accounts of ServiceSource International, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amount of net revenue and expenses during the reporting period. The Company’s significant accounting judgments and estimates include, but are not limited to: revenue recognition, the valuation and recognition of stock-based compensation, the recognition and measurement of current and deferred income tax assets and liabilities and uncertain tax positions, the provision for bad debts and impairment of goodwill and long-lived assets. The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. However, future events are subject to change and estimates and judgments routinely require adjustment. Actual results and outcomes may differ from our estimates. Reclassifications Certain items on the Consolidated Statement of Cash Flows for the three months ended March 31, 2018 have been reclassified to conform to the current year presentation. These reclassifications did not affect the Company's Consolidated Balance Sheet as of December 31, 2018 or the Company's Consolidated Statements of Operations, Consolidated Statements of Comprehensive Loss or Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2018 . New Accounting Standards Adopted Leases In February 2016, the Financial Accounting Standard Board ("FASB") issued an Accounting Standard Update ("ASU") 2016-02, Leases (Topic 842), which requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and will also require significant additional disclosures about the amount, timing, and uncertainty of cash flows from leases. Substantially all leases, including current operating leases, will be recognized by lessees on their balance sheet as a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 initially required entities to adopt the standard using a modified retrospective transition method. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) Targeted Improvements, which provide transition practical expedients allowing companies to adopt the new standard with a cumulative effect adjustment as of the beginning of the year of adoption with prior year comparative financial information and disclosures remaining as previously reported. The Company adopted this standard effective January 1, 2019 and elected the package of practical expedients, accounting for leases with contractual terms less than 12 months as short-term leases and the transition relief option to apply legacy GAAP to periods prior to the standard’s effective date. Upon initial adoption of the standard, the Company recorded a $29.5 million right-of-use asset ("ROU") and a $32.1 million operating lease liability to the Consolidated Balance Sheet as of January 1, 2019. Cloud Computing Implementation Costs In August 2018, the FASB issued an ASU that provides guidance on the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the new standard. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2019, with early adoption permitted. The Company early adopted this standard effective January 1, 2019 and the effects of this standard were applied prospectively to eligible costs incurred on or after January 1, 2019. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements. New Accounting Policies upon Adoption of ASC 842 Leases At the inception of a contract, the Company determines whether the contract is or contains a lease. ROU assets represent the Company's right to use an underlying asset over the lease term and lease liabilities represent our remaining payment obligation under the lease. ROU assets and liabilities are recognized upon the lease commencement based on the present value of lease payments over the lease term. ROU assets are adjusted for any prepaid or accrued lease payments and unamortized lease incentives or initial direct costs. As most of the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate, the variable interest rate on the revolving line of credit (the “Revolver”), based on information available at the lease commencement in determining the present value of lease payments. The Company's lease terms include options to extend or terminate the lease when it is reasonably certain it will exercise the option. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense and sublease income is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. See “ Note 6 — Leases” for additional information. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows a three-tier fair value hierarchy, which is described in detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . There were no transfers between levels during the three months ended March 31, 2019 and 2018 . Cash equivalents consist of highly liquid investments with original maturities of three months or less at the time of purchase. Cash and cash equivalents are classified within Level 1. Short-term investments consist of readily marketable debt securities with a remaining maturity of more than three months from the time of purchase. The Company liquidated its investment securities during the first half of 2018 to repay the $150.0 million convertible notes that matured August 1, 2018. Based on the Company’s decision to sell these investment securities, an other-than-temporary impairment occurred and a $2.0 million impairment loss was recorded in the Consolidated Statement of Operations for the three months ended March 31, 2018 . Realized gains and losses were immaterial for the three months ended March 31, 2018 . Gains and losses on available-for-sale securities are recorded in "Interest and other expense, net" in the Consolidated Statements of Operations. The Company had restricted cash in "Other assets" in the Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 of $2.3 million and $1.2 million , respectively. Restricted cash is classified within Level 1. |
Other Current and Long-Term Lia
Other Current and Long-Term Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Long-Term Liabilities | Other Current and Long-Term Liabilities Other current liabilities were comprised of the following: March 31, 2019 December 31, 2018 (in thousands) Legal reserve $ 3,750 $ 3,750 Finance lease obligations 918 954 Contract liability 826 873 Other liabilities 375 198 Employee stock purchase plan withholdings 124 384 Deferred rent — 735 Total $ 5,993 $ 6,894 Other long-term liabilities were comprised of the following: March 31, 2019 December 31, 2018 (in thousands) Asset retirement obligations $ 1,381 $ 1,368 Finance lease obligations 1,256 1,510 Accrued restructuring costs 654 716 Deferred tax liability 110 268 Other accrued costs 111 105 Deferred rent — 2,573 Total $ 3,512 $ 6,540 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Line of Credit In July 2018 , the Company entered into a $40.0 million senior secured Revolver that allows us to borrow against our domestic receivables as defined in the credit agreement. The Revolver matures July 2021 and bears interest at a variable rate per annum based on the greater of the prime rate, the Federal Funds rate plus 0.50% or the one-month LIBOR rate plus 1.00% , plus, in each case, a margin of 1.00% for base rate borrowings or 2.00% for Eurodollar borrowings. As of March 31, 2019 , the Company did not have any borrowings outstanding on the Revolver and therefore has no future obligations. The obligations under the credit agreement are secured by substantially all assets of the borrowers and certain of their subsidiaries, including pledges of equity in certain of the Company’s subsidiaries. The Revolver has covenants with which the Company was in compliance as of March 31, 2019 and December 31, 2018 . Deferred Debt Issuance Costs Discounts and premiums to the principal amounts are included in the carrying value of debt and amortized to "Interest and other expense, net" over the remaining life of the underlying debt. Unamortized debt issuance costs were $0.2 million as of March 31, 2019 and December 31, 2018 . The amortization of all premiums and discounts related to the convertible notes that matured August 2018 was $2.2 million as of March 31, 2018 . Interest expense during the three months ended March 31, 2019 and 2018 was approximately $0.1 million and $3.0 million , respectively, related to the amortization of debt issuance costs, interest expense associated with the Company's debt obligations and accretion of the Company's debt discount. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for office space and finance leases for certain equipment under non-cancelable agreements with various expiration dates through April 2030. Certain office leases include the option to extend the term between three to seven years and certain office leases include the option to terminate the lease upon written notice within one to eight years after lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheet. In January 2018, the Company entered into a sublease with a third-party for the San Francisco office space through the remaining term of the lease of November 30, 2022. The Company recognizes rent expense and sublease income on a straight-line basis over the lease period and accrues for rent expense and sublease income incurred but not paid. Rent expense and sublease income during the three months ended March 31, 2018 was approximately $2.6 million and $0.2 million , respectively. Supplemental income statement information related to leases was as follows: For the Three Months Ended March 31, 2019 (in thousands) Operating lease cost $ 2,881 Finance lease cost: Amortization of leased assets 151 Interest on lease liabilities 41 Total finance lease cost 192 Sublease income (468 ) Net lease cost $ 2,605 Supplemental balance sheet information related to leases was as follows: March 31, 2019 (in thousands) Operating leases: Right-of-use assets $ 36,944 Operating lease liabilities $ 8,504 Operating lease liabilities, net of current portion 30,918 Total operating lease liabilities $ 39,422 Finance leases: Property and equipment $ 3,303 Accumulated depreciation (1,283 ) Property and equipment, net $ 2,020 Other current liabilities $ 918 Other long-term liabilities 1,256 Total finance lease liabilities $ 2,174 Lease term and discount rate information related to leases were as follows: For the Three Months Ended March 31, 2019 Weighted-average remaining lease term (in years): Operating lease 5.3 Finance lease 2.5 Weighted-average discount rate: Operating lease 6.5 % Finance lease 8.3 % Maturities of lease liabilities were as follows as of March 31, 2019 : Operating Leases (1) Operating Sublease Finance Leases (in thousands) Remainder of 2019 $ 7,630 $ (1,413 ) $ 810 2020 10,531 (1,932 ) 976 2021 10,377 (1,989 ) 569 2022 7,130 (1,878 ) 36 2023 2,217 — — Thereafter 8,769 — — Total lease payments 46,654 (7,212 ) 2,391 Less: interest (7,232 ) — (217 ) Total $ 39,422 $ (7,212 ) $ 2,174 (1) During February 2019, the Company entered into a two year lease agreement in Japan that had not yet commenced as of March 31, 2019 with future undiscounted lease payments totaling approximately $0.8 million . |
Leases | Leases The Company has operating leases for office space and finance leases for certain equipment under non-cancelable agreements with various expiration dates through April 2030. Certain office leases include the option to extend the term between three to seven years and certain office leases include the option to terminate the lease upon written notice within one to eight years after lease commencement. Leases with an initial term of 12 months or less are not recorded on the balance sheet. In January 2018, the Company entered into a sublease with a third-party for the San Francisco office space through the remaining term of the lease of November 30, 2022. The Company recognizes rent expense and sublease income on a straight-line basis over the lease period and accrues for rent expense and sublease income incurred but not paid. Rent expense and sublease income during the three months ended March 31, 2018 was approximately $2.6 million and $0.2 million , respectively. Supplemental income statement information related to leases was as follows: For the Three Months Ended March 31, 2019 (in thousands) Operating lease cost $ 2,881 Finance lease cost: Amortization of leased assets 151 Interest on lease liabilities 41 Total finance lease cost 192 Sublease income (468 ) Net lease cost $ 2,605 Supplemental balance sheet information related to leases was as follows: March 31, 2019 (in thousands) Operating leases: Right-of-use assets $ 36,944 Operating lease liabilities $ 8,504 Operating lease liabilities, net of current portion 30,918 Total operating lease liabilities $ 39,422 Finance leases: Property and equipment $ 3,303 Accumulated depreciation (1,283 ) Property and equipment, net $ 2,020 Other current liabilities $ 918 Other long-term liabilities 1,256 Total finance lease liabilities $ 2,174 Lease term and discount rate information related to leases were as follows: For the Three Months Ended March 31, 2019 Weighted-average remaining lease term (in years): Operating lease 5.3 Finance lease 2.5 Weighted-average discount rate: Operating lease 6.5 % Finance lease 8.3 % Maturities of lease liabilities were as follows as of March 31, 2019 : Operating Leases (1) Operating Sublease Finance Leases (in thousands) Remainder of 2019 $ 7,630 $ (1,413 ) $ 810 2020 10,531 (1,932 ) 976 2021 10,377 (1,989 ) 569 2022 7,130 (1,878 ) 36 2023 2,217 — — Thereafter 8,769 — — Total lease payments 46,654 (7,212 ) 2,391 Less: interest (7,232 ) — (217 ) Total $ 39,422 $ (7,212 ) $ 2,174 (1) During February 2019, the Company entered into a two year lease agreement in Japan that had not yet commenced as of March 31, 2019 with future undiscounted lease payments totaling approximately $0.8 million . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letter of Credit In connection with two of our leased facilities, the Company is required to maintain two letters of credit totaling $2.3 million . The letters of credit are secured by $2.3 million of cash in money market accounts, which are classified as restricted cash in "Other assets" in our Consolidated Balance Sheets. 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 March 31, 2019 and December 31, 2018 , the Company accrued a $3.8 million reserve relating to our potential liability for currently pending disputes, reflected in "Other current liabilities" in the 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 non-exempt employees 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; and, on September 28, 2018, the plaintiffs filed a motion to certify the state law breach of contract and unjust enrichment claims as a class action. A settlement of all claims was reached at mediation, and the motion for required court approval of the settlement was filed on January 24, 2019. The Company anticipates Court approval of the settlement and conclusion of the lawsuit in the coming months. Non-cancelable Service Contract Commitments Future minimum payments under non-cancelable service contract commitments were as follows: March 31, 2019 (in thousands) Remainder of 2019 $ 6,370 2020 9,018 2021 7,986 2022 8,277 2023 7,391 Thereafter — Total $ 39,042 |
Revenues, Contract Asset and Li
Revenues, Contract Asset and Liability Balances and Contract Acquisition Costs | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues, Contract Asset and Liability Balances and Contract Acquisition Costs | Revenues, Contract Asset and Liability Balances and Contract Acquisition Costs The following tables present the disaggregation of revenue from contracts with our clients: Revenue by Performance Obligation For the Three Months Ended 2019 2018 (in thousands) Professional services $ 383 $ 2,007 Selling services 55,128 56,578 Total revenue $ 55,511 $ 58,585 Revenue by Geography For the Three Months Ended 2019 2018 (in thousands) APJ $ 8,674 $ 7,594 EMEA 13,636 15,522 NALA 33,201 35,469 Total revenue $ 55,511 $ 58,585 Revenue by Contract Pricing For the Three Months Ended 2019 2018 (in thousands) Fixed consideration $ 19,729 $ 17,742 Variable consideration 35,782 40,843 Total revenue $ 55,511 $ 58,585 Contract Balances Once the Company obtains a client contract, the timing of satisfying performance obligations and the receipt of client consideration can be different and will give rise to contract assets and contract liabilities. As of March 31, 2019 and December 31, 2018 , the contract asset balance totaled $0.1 million and $0.2 million , respectively, and the contract liability balance totaled $0.8 million and $0.9 million , respectively. Contract assets and contract liabilities are reflected in "Prepaid expenses and other", "Other assets" and "Other current liabilities" in the Consolidated Balance Sheets. Transaction Price Allocated to Remaining Performance Obligations The Company maintains contracts with fixed consideration that are generally with long-standing client relationships and typically renew annually. Assuming none of the Company’s current contracts with fixed consideration are renewed, we estimate receiving approximately $53.5 million in future selling services fixed consideration as of March 31, 2019 . Professional services revenues from fixed consideration are based on proportional performance which is typically concluded within 90 days of contract execution. The Company typically bills professional services upfront upon obtaining a client contract. As of March 31, 2019 , we estimate $0.3 million in professional services fixed consideration revenue to be recognized through the remainder of 2019 . Contract Acquisition Costs Certain commissions paid to the Company's sales team upon obtaining a client contract are incremental and recoverable, and capitalized as contract acquisition costs. Under the transition guidance, the Company recorded a $3.3 million contract acquisition asset and corresponding offset to the opening accumulated deficit balance related to previously expensed sales commissions. The Company expensed $1.5 million of the $3.3 million of contract acquisition asset during 2018 and will expense the remainder of the asset over the next five years as follows: $0.6 million remaining in 2019 , $0.6 million in 2020 and $0.3 million in 2021 and beyond. The Company recorded $0.3 million in amortization for the three months ended March 31, 2019 related to amounts capitalized upon the adoption of ASC 606. As of March 31, 2019 and December 31, 2018 , the Company capitalized an additional $0.1 million and $1.1 million , respectively, of sales commissions as contract acquisition costs related to contracts obtained during the period. The Company recorded $0.1 million of amortization expense for the three months ended March 31, 2019 related to amounts capitalized. As of March 31, 2019 , the weighted-average remaining amortization period related to these capitalized costs is approximately 1.8 years. Impairment recognized on contract costs was insignificant for the three months ended March 31, 2019 and 2018 . Applying the practical expedient for amortization periods one year or less, the Company recognizes any incremental costs of obtaining contracts as expense when the cost is incurred. These costs are included in "Sales and marketing" in the Consolidated Statements of Operations. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock-Based Compensation Expense The following table presents stock-based compensation expense as allocated within the Company's Consolidated Statements of Operations: For the Three Months Ended 2019 2018 (in thousands) Cost of revenue $ 159 $ 279 Sales and marketing 443 886 Research and development (6 ) 64 General and administrative 974 1,882 Total stock-based compensation $ 1,570 $ 3,111 The above table does not include $0.1 million of capitalized stock-based compensation related to internal-use software for the three months ended March 31, 2018 . Stock Awards Issued to Employees The following table summarizes information related to stock options: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Intrinsic Value (in thousands) (in thousands) Outstanding as of December 31, 2018 7,516 $ 3.34 $ — Granted 25 $ 1.01 Expired and/or forfeited (3,334 ) $ 4.08 Outstanding as of March 31, 2019 4,207 $ 2.74 7.89 $ — Exercisable as of March 31, 2019 1,422 $ 5.26 4.66 $ — The weighted-average fair value of options granted during the three months ended March 31, 2019 and 2018 was $0.53 and $1.81 , respectively. As of March 31, 2019 there was $1.8 million of unrecognized compensation expense related to stock options granted under the 2011 Equity Incentive Plan (the "2011 Plan"), which is expected to be recognized over a weighted-average period of 2.8 years. The following table summarizes information related to restricted stock units and performance-based restricted stock units: Units Weighted-Average Grant Date Fair Value (in thousands) Non-vested as of December 31, 2018 5,669 $ 3.29 Granted 75 $ 1.01 Vested (228 ) $ 3.82 Forfeited (508 ) $ 3.82 Non-vested as of March 31, 2019 5,008 $ 3.18 As of March 31, 2019 there was $11.2 million of unrecognized compensation expense related to non-vested restricted stock units and performance-based restricted stock units granted under the 2011 Plan, which is expected to be recognized over a weighted-average period of 2.5 years. 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 stock options, unvested restricted stock and shares to be purchased under our 2011 Employee Stock Purchase Plan. The Company excluded from diluted earnings per share the weighted-average common share equivalents related to 10.4 million and 6.8 million shares for the three months ended March 31, 2019 and 2018 , respectively, because their effect would have been anti-dilutive. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to taxation in the U.S. 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. The "Provision for income tax expense" in the Consolidated Statements of Operations primarily consist 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 the U.S., Ireland and Singapore because those losses are offset by a full valuation allowance. The tax years 2011 through 2019 generally remain subject to examination by federal, state and foreign tax authorities. The gross amount of the Company’s unrecognized tax benefits was $1.0 million and $0.9 million as of March 31, 2019 and December 31, 2018 respectively, none of which, if recognized, would affect the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the three months ended March 31, 2019 and 2018 , interest and penalties recognized were insignificant. |
Restructuring and Other Related
Restructuring and Other Related Costs | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Costs | Restructuring and Other Related Costs The Company has undergone restructuring efforts to better align its cost structure with business and market conditions. These restructuring efforts included severance and other employee costs, lease and other contract termination costs and asset impairments. Severance and other employee costs include severance payments, related employee benefits, stock-based compensation related to the accelerated vesting of certain equity awards 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 the 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 restructuring plans are accounted for in accordance with ASC 420, Exit or Disposal Cost Obligations and future cash outlays are recorded in "Accrued expenses", "Accrued compensation and benefits" and "Other long-term liabilities" in our Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 . In February 2019, the Company announced a restructuring effort to better align its cost structure with current business and market conditions, resulting in a headcount reduction. The Company recognized charges related to this restructuring effort of $1.1 million for the three months ended March 31, 2019 and expects to incur additional costs through September 2019. The following table presents restructuring and other related costs related to the February 2019 restructuring effort: Severance and Other Employee Costs (in thousands) Balance as of January 1, 2019 $ — Restructuring and other related costs 1,058 Cash paid (693 ) Balance as of March 31, 2019 $ 365 In May 2017 , the Company announced a restructuring effort to better align its cost structure with current business and market conditions, including a headcount reduction and the reduction of office space in four locations. The Company recognized charges related to this restructuring effort of $0.1 million for the three months ended March 31, 2018 . The Company does not expect to incur additional restructuring charges related to the May 2017 restructuring as of March 31, 2019 . The following table presents restructuring and other related costs related to the May 2017 restructuring effort: Severance and Other Employee Costs Lease and Other Contract Termination Costs Asset Impairments Total (in thousands) Balance as of January 1, 2017 $ — $ — $ — $ — Restructuring and other related costs 3,483 2,939 886 7,308 Cash paid (3,060 ) (1,185 ) — (4,245 ) Change in estimates and non-cash charges — — (886 ) (886 ) Acceleration of stock-based compensation expense in additional paid-in capital (352 ) — — (352 ) Balance as of December 31, 2017 71 1,754 — 1,825 Restructuring and other related costs 120 89 — 209 Cash paid (188 ) (1,133 ) — (1,321 ) Change in estimates and non-cash charges (3 ) 252 — 249 Balance as of December 31, 2018 — 962 — 962 Cash paid — (45 ) — (45 ) Change in estimates and non-cash charges — (17 ) — (17 ) Balance as of March 31, 2019 $ — $ 900 $ — $ 900 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events GAAP requires an entity to disclose events that occur after the balance sheet date but before financial statements are issued or are available to be issued (“subsequent events”) as well as the date through which an entity has evaluated subsequent events. There are two types of subsequent events. The first type consists of events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements (“recognized subsequent events”). The second type consists of events that provide evidence about conditions that did not exist at the date of the balance sheet but arose subsequent to that date (“nonrecognized subsequent events”). No significant recognized or nonrecognized subsequent events were noted. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all the information required by GAAP for annual financial statements. The unaudited Consolidated Balance Sheet as of December 31, 2018 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, 2018 filed with the Securities and Exchange Commission on February 28, 2019 . In the opinion of management, these Consolidated Financial Statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair presentation of the Company’s financial position, operating results, and cash flows for the interim periods presented. These Consolidated Financial Statements and accompanying notes should be read in conjunction with our audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2018 , included in our annual report on Form 10-K. Interim results are not necessarily indicative of results for the entire year. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited interim Consolidated Financial Statements include the accounts of ServiceSource International, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amount of net revenue and expenses during the reporting period. The Company’s significant accounting judgments and estimates include, but are not limited to: revenue recognition, the valuation and recognition of stock-based compensation, the recognition and measurement of current and deferred income tax assets and liabilities and uncertain tax positions, the provision for bad debts and impairment of goodwill and long-lived assets. The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. However, future events are subject to change and estimates and judgments routinely require adjustment. Actual results and outcomes may differ from our estimates. |
Reclassifications | Reclassifications Certain items on the Consolidated Statement of Cash Flows for the three months ended March 31, 2018 have been reclassified to conform to the current year presentation. These reclassifications did not affect the Company's Consolidated Balance Sheet as of December 31, 2018 or the Company's Consolidated Statements of Operations, Consolidated Statements of Comprehensive Loss or Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2018 . |
New Accounting Standards Adopted | New Accounting Standards Adopted Leases In February 2016, the Financial Accounting Standard Board ("FASB") issued an Accounting Standard Update ("ASU") 2016-02, Leases (Topic 842), which requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and will also require significant additional disclosures about the amount, timing, and uncertainty of cash flows from leases. Substantially all leases, including current operating leases, will be recognized by lessees on their balance sheet as a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 initially required entities to adopt the standard using a modified retrospective transition method. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) Targeted Improvements, which provide transition practical expedients allowing companies to adopt the new standard with a cumulative effect adjustment as of the beginning of the year of adoption with prior year comparative financial information and disclosures remaining as previously reported. The Company adopted this standard effective January 1, 2019 and elected the package of practical expedients, accounting for leases with contractual terms less than 12 months as short-term leases and the transition relief option to apply legacy GAAP to periods prior to the standard’s effective date. Upon initial adoption of the standard, the Company recorded a $29.5 million right-of-use asset ("ROU") and a $32.1 million operating lease liability to the Consolidated Balance Sheet as of January 1, 2019. Cloud Computing Implementation Costs In August 2018, the FASB issued an ASU that provides guidance on the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the new standard. This ASU is effective for annual periods and interim periods for those annual periods beginning after December 15, 2019, with early adoption permitted. The Company early adopted this standard effective January 1, 2019 and the effects of this standard were applied prospectively to eligible costs incurred on or after January 1, 2019. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements. |
Leases | Leases At the inception of a contract, the Company determines whether the contract is or contains a lease. ROU assets represent the Company's right to use an underlying asset over the lease term and lease liabilities represent our remaining payment obligation under the lease. ROU assets and liabilities are recognized upon the lease commencement based on the present value of lease payments over the lease term. ROU assets are adjusted for any prepaid or accrued lease payments and unamortized lease incentives or initial direct costs. As most of the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate, the variable interest rate on the revolving line of credit (the “Revolver”), based on information available at the lease commencement in determining the present value of lease payments. The Company's lease terms include options to extend or terminate the lease when it is reasonably certain it will exercise the option. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense and sublease income is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. |
Other Current and Long-Term L_2
Other Current and Long-Term Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities were comprised of the following: March 31, 2019 December 31, 2018 (in thousands) Legal reserve $ 3,750 $ 3,750 Finance lease obligations 918 954 Contract liability 826 873 Other liabilities 375 198 Employee stock purchase plan withholdings 124 384 Deferred rent — 735 Total $ 5,993 $ 6,894 |
Schedule of Other Long-Term Liabilities | Other long-term liabilities were comprised of the following: March 31, 2019 December 31, 2018 (in thousands) Asset retirement obligations $ 1,381 $ 1,368 Finance lease obligations 1,256 1,510 Accrued restructuring costs 654 716 Deferred tax liability 110 268 Other accrued costs 111 105 Deferred rent — 2,573 Total $ 3,512 $ 6,540 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of supplemental balance sheet information | Supplemental balance sheet information related to leases was as follows: March 31, 2019 (in thousands) Operating leases: Right-of-use assets $ 36,944 Operating lease liabilities $ 8,504 Operating lease liabilities, net of current portion 30,918 Total operating lease liabilities $ 39,422 Finance leases: Property and equipment $ 3,303 Accumulated depreciation (1,283 ) Property and equipment, net $ 2,020 Other current liabilities $ 918 Other long-term liabilities 1,256 Total finance lease liabilities $ 2,174 |
Summary of supplemental income statement information and other information | Lease term and discount rate information related to leases were as follows: For the Three Months Ended March 31, 2019 Weighted-average remaining lease term (in years): Operating lease 5.3 Finance lease 2.5 Weighted-average discount rate: Operating lease 6.5 % Finance lease 8.3 % Supplemental income statement information related to leases was as follows: For the Three Months Ended March 31, 2019 (in thousands) Operating lease cost $ 2,881 Finance lease cost: Amortization of leased assets 151 Interest on lease liabilities 41 Total finance lease cost 192 Sublease income (468 ) Net lease cost $ 2,605 |
Summary of maturities of lease liabilities | Maturities of lease liabilities were as follows as of March 31, 2019 : Operating Leases (1) Operating Sublease Finance Leases (in thousands) Remainder of 2019 $ 7,630 $ (1,413 ) $ 810 2020 10,531 (1,932 ) 976 2021 10,377 (1,989 ) 569 2022 7,130 (1,878 ) 36 2023 2,217 — — Thereafter 8,769 — — Total lease payments 46,654 (7,212 ) 2,391 Less: interest (7,232 ) — (217 ) Total $ 39,422 $ (7,212 ) $ 2,174 (1) During February 2019, the Company entered into a two year lease agreement in Japan that had not yet commenced as of March 31, 2019 with future undiscounted lease payments totaling approximately $0.8 million . |
Summary of maturities of lease liabilities | Maturities of lease liabilities were as follows as of March 31, 2019 : Operating Leases (1) Operating Sublease Finance Leases (in thousands) Remainder of 2019 $ 7,630 $ (1,413 ) $ 810 2020 10,531 (1,932 ) 976 2021 10,377 (1,989 ) 569 2022 7,130 (1,878 ) 36 2023 2,217 — — Thereafter 8,769 — — Total lease payments 46,654 (7,212 ) 2,391 Less: interest (7,232 ) — (217 ) Total $ 39,422 $ (7,212 ) $ 2,174 (1) During February 2019, the Company entered into a two year lease agreement in Japan that had not yet commenced as of March 31, 2019 with future undiscounted lease payments totaling approximately $0.8 million . |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments Under Non-cancelable Service Contract Commitments | Future minimum payments under non-cancelable service contract commitments were as follows: March 31, 2019 (in thousands) Remainder of 2019 $ 6,370 2020 9,018 2021 7,986 2022 8,277 2023 7,391 Thereafter — Total $ 39,042 |
Revenues, Contract Asset and _2
Revenues, Contract Asset and Liability Balances and Contract Acquisition Costs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue From Contracts with Clients | The following tables present the disaggregation of revenue from contracts with our clients: Revenue by Performance Obligation For the Three Months Ended 2019 2018 (in thousands) Professional services $ 383 $ 2,007 Selling services 55,128 56,578 Total revenue $ 55,511 $ 58,585 Revenue by Geography For the Three Months Ended 2019 2018 (in thousands) APJ $ 8,674 $ 7,594 EMEA 13,636 15,522 NALA 33,201 35,469 Total revenue $ 55,511 $ 58,585 Revenue by Contract Pricing For the Three Months Ended 2019 2018 (in thousands) Fixed consideration $ 19,729 $ 17,742 Variable consideration 35,782 40,843 Total revenue $ 55,511 $ 58,585 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table presents stock-based compensation expense as allocated within the Company's Consolidated Statements of Operations: For the Three Months Ended 2019 2018 (in thousands) Cost of revenue $ 159 $ 279 Sales and marketing 443 886 Research and development (6 ) 64 General and administrative 974 1,882 Total stock-based compensation $ 1,570 $ 3,111 |
Summary of Option and Restricted Stock Activity | The following table summarizes information related to stock options: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Intrinsic Value (in thousands) (in thousands) Outstanding as of December 31, 2018 7,516 $ 3.34 $ — Granted 25 $ 1.01 Expired and/or forfeited (3,334 ) $ 4.08 Outstanding as of March 31, 2019 4,207 $ 2.74 7.89 $ — Exercisable as of March 31, 2019 1,422 $ 5.26 4.66 $ — |
Summary of Additional Information Concerning Vested RSUs and PSUs | The following table summarizes information related to restricted stock units and performance-based restricted stock units: Units Weighted-Average Grant Date Fair Value (in thousands) Non-vested as of December 31, 2018 5,669 $ 3.29 Granted 75 $ 1.01 Vested (228 ) $ 3.82 Forfeited (508 ) $ 3.82 Non-vested as of March 31, 2019 5,008 $ 3.18 |
Restructuring and Other Relat_2
Restructuring and Other Related Costs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Reserve Activities | The following table presents restructuring and other related costs related to the May 2017 restructuring effort: Severance and Other Employee Costs Lease and Other Contract Termination Costs Asset Impairments Total (in thousands) Balance as of January 1, 2017 $ — $ — $ — $ — Restructuring and other related costs 3,483 2,939 886 7,308 Cash paid (3,060 ) (1,185 ) — (4,245 ) Change in estimates and non-cash charges — — (886 ) (886 ) Acceleration of stock-based compensation expense in additional paid-in capital (352 ) — — (352 ) Balance as of December 31, 2017 71 1,754 — 1,825 Restructuring and other related costs 120 89 — 209 Cash paid (188 ) (1,133 ) — (1,321 ) Change in estimates and non-cash charges (3 ) 252 — 249 Balance as of December 31, 2018 — 962 — 962 Cash paid — (45 ) — (45 ) Change in estimates and non-cash charges — (17 ) — (17 ) Balance as of March 31, 2019 $ — $ 900 $ — $ 900 The following table presents restructuring and other related costs related to the February 2019 restructuring effort: Severance and Other Employee Costs (in thousands) Balance as of January 1, 2019 $ — Restructuring and other related costs 1,058 Cash paid (693 ) Balance as of March 31, 2019 $ 365 |
The Company (Details)
The Company (Details) | 3 Months Ended |
Mar. 31, 2019language | |
Accounting Policies [Abstract] | |
Number of languages (more than) | 45 |
Years of operating experience | 20 years |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets | $ 36,944 | |
Operating lease liability | $ (39,422) | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets | $ 29,500 | |
Operating lease liability | $ (32,100) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Aug. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other-than-temporary impairment loss recorded in earnings | $ 0 | $ 1,958 | $ 2,000 | |
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 | $ 2,300 | $ 1,200 | ||
Senior Convertible Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Repayments of convertible debt | $ 150,000 |
Other Current and Long-Term L_3
Other Current and Long-Term Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Legal reserve | $ 3,750 | $ 3,750 |
Finance lease obligations | 918 | |
Finance lease obligations | 954 | |
Contract liability | 826 | 873 |
Other liabilities | 375 | 198 |
Employee stock purchase plan withholdings | 124 | 384 |
Deferred rent | 735 | |
Total | $ 5,993 | $ 6,894 |
Other Current and Long-Term L_4
Other Current and Long-Term Liabilities - Schedule of Long-Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Asset retirement obligations | $ 1,381 | $ 1,368 |
Finance lease obligations | 1,256 | |
Finance lease obligations | 1,510 | |
Accrued restructuring costs | 654 | 716 |
Deferred tax liability | 110 | 268 |
Other accrued costs | 111 | 105 |
Deferred rent | 2,573 | |
Total | $ 3,512 | $ 6,540 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Deferred loan costs | $ 200,000 | $ 200,000 | ||
Amortization of premiums and discounts | $ 2,200,000 | |||
Interest expense | $ 100,000 | $ 3,000,000 | ||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | |||
Federal Funds rate | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread of interest rate | 0.50% | |||
LIBOR | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread of interest rate | 1.00% | |||
Base rate | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread of interest rate | 1.00% | |||
Eurodollar | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread of interest rate | 2.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Rent expense | $ 2,600 | |
Sublease Income | $ 468 | $ 200 |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Option to extend, term (in years) | 3 years | |
Option to terminate, term (in years) | 1 year | |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Option to extend, term (in years) | 7 years | |
Option to terminate, term (in years) | 8 years |
Leases - Supplemental Income St
Leases - Supplemental Income Statement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,881 | |
Finance lease cost: | ||
Amortization of leased assets | 151 | |
Interest on lease liabilities | 41 | |
Total finance lease cost | 192 | |
Sublease income | (468) | $ (200) |
Net lease cost | $ 2,605 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating leases: | |
Right-of-use assets | $ 36,944 |
Operating lease liabilities | 8,504 |
Operating lease liabilities, net of current portion | 30,918 |
Total operating lease liabilities | 39,422 |
Finance leases: | |
Property and equipment | 3,303 |
Accumulated depreciation | (1,283) |
Property and equipment, net | 2,020 |
Other current liabilities | 918 |
Other long-term liabilities | 1,256 |
Total finance lease liabilities | $ 2,174 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Mar. 31, 2019 |
Weighted-average remaining lease term (in years): | |
Operating lease | 5 years 3 months 1 day |
Finance lease | 2 years 6 months |
Weighted-average discount rate: | |
Operating lease | 6.50% |
Finance lease | 8.30% |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
Remainder of 2019 | $ 7,630 |
2020 | 10,531 |
2021 | 10,377 |
2022 | 7,130 |
2023 | 2,217 |
Thereafter | 8,769 |
Total lease payments | 46,654 |
Less: interest | (7,232) |
Total | 39,422 |
Operating Sublease | |
Remainder of 2019 | (1,413) |
2020 | (1,932) |
2021 | (1,989) |
2022 | (1,878) |
2023 | 0 |
Thereafter | 0 |
Total | (7,212) |
Finance Leases | |
Remainder of 2019 | 810 |
2020 | 976 |
2021 | 569 |
2022 | 36 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 2,391 |
Less: interest | (217) |
Total | $ 2,174 |
Operating lease not yet commenced | 2 years |
Future undiscounted lease payments | $ 800 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | Aug. 23, 2016plaintiff | Mar. 31, 2019USD ($)facility | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | ||||
Number of leased facilities | facility | 2 | |||
Restricted cash | $ (678) | $ 361 | ||
Loss contingency accrual | 3,750 | $ 3,750 | ||
Sarah Patton, et al v. ServiceSource Delaware, Inc | Pending Litigation | ||||
Operating Leased Assets [Line Items] | ||||
Number of plaintiffs | plaintiff | 3 | |||
Money market mutual funds | Letter of Credit | ||||
Operating Leased Assets [Line Items] | ||||
Letters of credit | 2,300 | |||
Restricted cash | $ 2,300 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Payments Under Non-cancelable Service Contract Commitments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Non-cancelable Service Contract Commitments | |
Remainder of 2019 | $ 6,370 |
2020 | 9,018 |
2021 | 7,986 |
2022 | 8,277 |
2023 | 7,391 |
Thereafter | 0 |
Total | $ 39,042 |
Revenues, Contract Asset and _3
Revenues, Contract Asset and Liability Balances and Contract Acquisition Costs - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 55,511 | $ 58,585 |
Fixed consideration | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 19,729 | 17,742 |
Variable consideration | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 35,782 | 40,843 |
APJ | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 8,674 | 7,594 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13,636 | 15,522 |
NALA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 33,201 | 35,469 |
Professional services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 383 | 2,007 |
Selling services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 55,128 | $ 56,578 |
Revenues, Contract Asset and _4
Revenues, Contract Asset and Liability Balances and Contract Acquisition Costs - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract asset | $ 100 | $ 200 |
Contract liability | 826 | 873 |
Amortization of contract acquisition costs | 100 | |
Amortization expense for the remainder of 2019 | 600 | |
Amortization expense for 2020 | 600 | |
Amortization expense for 2021 and beyond | 300 | |
Additional contract costs capitalized | $ 100 | 1,100 |
Amortization term | 1 year 9 months 4 days | |
Impairment of contract costs | $ 0 | |
ASU 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract acquisition costs | 3,300 | |
Amortization of contract acquisition costs | $ 1,500 | |
Selling services | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Remaining performance obligation | 53,500 | |
After Adoption of New Revenue Guidance | ASU 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Amortization of contract acquisition costs | $ (300) |
Revenues, Contract Asset and _5
Revenues, Contract Asset and Liability Balances and Contract Acquisition Costs - Performance Obligations (Details) - Selling services $ in Millions | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 53.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 0.3 |
Remaining performance obligation, expected timing of satisfaction | 9 months |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Capitalized stock-based compensation related to internal-use software | $ 0.1 | |
Antidilutive shares excluded from diluted earnings per share calculation (in shares) | 10.4 | 6.8 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value of options granted (in dollars per share) | $ 0.53 | $ 1.81 |
Employee Stock Option | The 2011 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, stock options | $ 1.8 | |
Unrecognized compensation expense, weighted-average period recognized | 2 years 9 months 18 days | |
RSUs and PSUs | The 2011 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, RSUs and PSUs | $ 11.2 | |
Unrecognized compensation expense, weighted-average period recognized | 2 years 5 months 15 days |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 1,570 | $ 3,111 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 159 | 279 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 443 | 886 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | (6) | 64 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 974 | $ 1,882 |
Stockholders' Equity - Option A
Stockholders' Equity - Option Activity (Details) - Employee Stock Option $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Options Outstanding, Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 7,516 |
Granted (in shares) | shares | 25 |
Expired and/or forfeited (in shares) | shares | (3,334) |
Outstanding, ending balance (in shares) | shares | 4,207 |
Options exercisable (in shares) | shares | 1,422 |
Options Outstanding, Options, Weighted Average Exercise Price | |
Outstanding, weighted average exercise price per share, beginning balance (in dollars per share) | $ / shares | $ 3.34 |
Granted, weighted average exercise price per share (in dollars per share) | $ / shares | 1.01 |
Expired and/or Forfeited, weighted average exercise price per share (in dollars per share) | $ / shares | 4.08 |
Outstanding, weighted average exercise price per share, ending balance (in dollars per share) | $ / shares | 2.74 |
Options exercisable, weighted average option price per share (in dollars per share) | $ / shares | $ 5.26 |
Outstanding, weighted average remaining contractual life | 7 years 10 months 19 days |
Options exercisable, weighted average remaining contractual life | 4 years 7 months 27 days |
Outstanding, intrinsic value | $ | $ 0 |
Options exercisable, intrinsic value | $ | $ 0 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Unit Activity (Details) - RSUs and PSUs shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Unvested, beginning balance (in shares) | shares | 5,669 |
Granted (in shares) | shares | 75 |
Vested (in shares) | shares | (228) |
Forfeited (in shares) | shares | (508) |
Unvested, ending balance (in shares) | shares | 5,008 |
Weighted-Average Grant Date Fair Value | |
Unvested, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 3.29 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 1.01 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 3.82 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 3.82 |
Unvested, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 3.18 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 1 | $ 0.9 |
Restructuring and Other Relat_3
Restructuring and Other Related Costs - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
May 31, 2017location | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
February 2019 Restructuring Effort | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 1,100 | ||||
May 2017 Restructuring Effort | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 100 | $ 209 | $ 7,308 | ||
Number of locations where reduction of headcount and office spaces took place (location) | location | 4 |
Restructuring and Other Relat_4
Restructuring and Other Related Costs - Restructuring and Other Reserve Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
February 2019 Restructuring Effort | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other related costs | $ 1,100 | |||
February 2019 Restructuring Effort | Severance and Other Employee Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | |||
Restructuring and other related costs | 1,058 | |||
Cash paid | (693) | |||
Ending Balance | 365 | $ 0 | ||
May 2017 Restructuring Effort | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 962 | $ 1,825 | 1,825 | $ 0 |
Restructuring and other related costs | 100 | 209 | 7,308 | |
Cash paid | (45) | (1,321) | (4,245) | |
Change in estimates and non-cash charges | (17) | 249 | (886) | |
Acceleration of stock-based compensation expense in additional paid-in capital | (352) | |||
Ending Balance | 900 | 962 | 1,825 | |
May 2017 Restructuring Effort | Severance and Other Employee Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | 71 | 71 | 0 |
Restructuring and other related costs | 120 | 3,483 | ||
Cash paid | 0 | (188) | (3,060) | |
Change in estimates and non-cash charges | 0 | (3) | 0 | |
Acceleration of stock-based compensation expense in additional paid-in capital | (352) | |||
Ending Balance | 0 | 0 | 71 | |
May 2017 Restructuring Effort | Lease and Other Contract Termination Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 962 | 1,754 | 1,754 | 0 |
Restructuring and other related costs | 89 | 2,939 | ||
Cash paid | (45) | (1,133) | (1,185) | |
Change in estimates and non-cash charges | (17) | 252 | 0 | |
Acceleration of stock-based compensation expense in additional paid-in capital | 0 | |||
Ending Balance | 900 | 962 | 1,754 | |
May 2017 Restructuring Effort | Asset Impairments | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | $ 0 | 0 | 0 |
Restructuring and other related costs | 0 | 886 | ||
Cash paid | 0 | 0 | 0 | |
Change in estimates and non-cash charges | 0 | 0 | (886) | |
Acceleration of stock-based compensation expense in additional paid-in capital | 0 | |||
Ending Balance | $ 0 | $ 0 | $ 0 |