Innerworkings (INWK) 10-Q 31 Jul 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Jul. 24, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	INNERWORKINGS INC
Entity Central Index Key	1,350,381
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	INWK
Entity Common Stock, Shares Outstanding		52,171,438
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Condensed Consolidated Statemen

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Revenue	$ 274,539	$ 264,405
Cost of goods sold	208,472	199,701
Gross profit	66,067	64,704
Operating expenses:
Selling, general and administrative expenses	61,167	53,615
Depreciation and amortization	3,659	2,904
Change in fair value of contingent consideration	0	(1,040)
Income from operations	1,241	9,225
Other income (expense):
Interest income	62	34
Interest expense	(1,568)	(1,003)
Other, net	(846)	(224)
Total other expense	(2,352)	(1,193)
(Loss) income before income taxes	(1,111)	8,032
Income tax expense	573	2,354
Net (loss) income	$ (1,684)	$ 5,678
Basic earnings (loss) per share (in dollars per share)	$ (0.03)	$ 0.11
Diluted earnings (loss) per share (in dollars per share)	$ (0.03)	$ 0.10
Comprehensive income	$ 1,680	$ 7,657

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 43,474	$ 30,562
Accounts receivable, net of allowance for doubtful accounts of $3,712 and $3,534, respectively	183,012	205,386
Unbilled revenue	47,685	50,016
Inventories	38,563	40,694
Prepaid expenses	19,846	18,565
Other current assets	33,716	37,865
Total current assets	366,296	383,088
Property and equipment, net	37,207	36,714
Intangibles and other assets:
Goodwill	200,743	199,946
Intangible assets, net	26,641	27,563
Deferred income taxes	947	691
Other non-current assets	2,139	1,636
Total intangibles and other assets	230,470	229,836
Total assets	633,973	649,638
Current liabilities:
Accounts payable	120,260	141,164
Accrued expenses	40,081	34,391
Deferred revenue	31,524	17,620
Other current liabilities	24,073	24,078
Total current liabilities	215,938	217,253
Revolving credit facility	118,886	128,398
Deferred income taxes	12,208	12,043
Other non-current liabilities	7,287	7,399
Total liabilities	354,319	365,093
Commitments and contingencies (See Note 12)
Stockholders' equity:
Common stock, par value $0.0001 per share, 200,000 and 200,000 shares authorized, 64,103 and 64,075 shares issued, and 53,151 and 54,055 shares outstanding, respectively	6	6
Additional paid-in capital	236,664	235,199
Treasury stock at cost, 10,952 and 10,020 shares, respectively	(64,544)	(55,873)
Accumulated other comprehensive loss	(15,865)	(19,229)
Retained earnings	123,393	124,442
Total stockholders' equity	279,654	284,545
Total liabilities and stockholders' equity	$ 633,973	$ 649,638

Condensed Consolidated Balance4

Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 3,712	$ 3,534
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	64,103,000	64,075,000
Common stock, shares outstanding (in shares)	53,151,000	54,055,000
Treasury stock at cost (in shares)	10,952,000	10,020,000

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity Statement - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in-Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2014-09	$ 482					$ 482
Beginning Balance (in shares) at Dec. 31, 2017		64,075,000	10,020,000
Total stockholders' equity - Beginning Balance at Dec. 31, 2017	284,545	$ 6	$ (55,873)	$ 235,199	$ (19,229)	124,442
Net loss	(1,684)					(1,684)
Net current-period other comprehensive income	3,364				3,364
Total other comprehensive income, net of tax	3,364
Comprehensive income	1,680
Issuance of common stock upon exercise of stock awards (in shares)		28,000
Issuance of common stock upon exercise of stock awards	$ 48	$ 0		48
Stock Repurchased During Period, Shares	931,749		932,000
Stock Repurchased During Period, Value	$ (8,671)		$ (8,671)
Stock-based compensation expense	1,417			1,417
Cumulative effect of change related to adoption of ASU 2016-16	153					153
Ending Balance (in shares) at Mar. 31, 2018		64,103,000	10,952,000
Total stockholders' equity - Ending Balance at Mar. 31, 2018	$ 279,654	$ 6	$ (64,544)	$ 236,664	$ (15,865)	$ 123,393

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities
Net (loss) income	$ (1,684)	$ 5,678
Adjustments to reconcile net (loss) income to net cash from operating activities:
Depreciation and amortization	3,659	2,904
Stock-based compensation expense	1,417	1,419
Deferred income taxes	30	478
Bad debt provision	538	175
Amortization of Implementation Cost	125	0
Change in fair value of contingent consideration	0	(1,040)
Other operating activities	52	52
Change in assets:
Accounts receivable and unbilled revenue	24,165	(4,680)
Inventories	2,131	(226)
Prepaid expenses and other assets	2,941	(1,167)
Change in liabilities:
Accounts payable	(20,922)	(8,396)
Accrued expenses and other liabilities	21,857	4,923
Net cash provided by operating activities	34,309	120
Cash flows from investing activities
Purchases of property and equipment	(2,874)	(3,042)
Net cash used in investing activities	(2,874)	(3,042)
Cash flows from financing activities
Net (repayments) borrowings from revolving credit facilities	(9,023)	6,519
Net short-term secured repayments	(1,986)	(801)
Repurchases of common stock	(8,048)	(4,342)
Proceeds from exercise of stock options	7	189
Other financing activities	(67)	(95)
Net cash (used in) provided by financing activities	(19,117)	1,470
Effect of exchange rate changes on cash and cash equivalents	594	448
Increase (decrease) in cash and cash equivalents	12,912	(1,004)
Cash and cash equivalents, beginning of period	30,562	30,924
Cash and cash equivalents, end of period	$ 43,474	$ 29,920

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition Revenue is measured based on consideration specified in a contract with a customer and the Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time. Unbilled revenue represents shipments or deliveries that have been made to customers for which the related account receivable has not yet been invoiced. Shipping and handling costs after control over a product has transferred to a customer are expensed as incurred and are included in cost of goods sold in the condensed consolidated statements of operations. In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers, we generally report revenue on a gross basis because we typically control the goods or services before transferring to the customer. Under these arrangements, we are primarily responsible for the fulfillment, including the acceptability, of the marketing materials and other products or services. In addition, we have reasonable discretion in establishing the price, and in some transactions, we also have inventory risk and are involved in the determination of the nature or characteristics of the marketing materials and products. In some arrangements, we are not primarily responsible for fulfilling the goods or services. In arrangements of this nature, we do not control the goods or services before they are transferred to the customer and such revenue is reported on a net basis. Some service revenue, including stand-alone creative and other services, may be earned over time; however, the difference from recognizing that revenue over time compared to a point in time (i.e., when the service is completed and accepted by the customer) is not material. Service revenue has not been material to our overall revenue to date. The Company records taxes collected from customers and remitted to governmental authorities on a net basis.
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation of Interim Financial Statements The accompanying unaudited condensed consolidated financial statements of InnerWorkings, Inc. and subsidiaries (the “Company”) included herein have been prepared to conform to the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments considered necessary for a fair presentation of the accompanying unaudited financial statements have been included, and all adjustments are of a normal and recurring nature. The operating results for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year ending December 31, 2018 . These condensed consolidated interim financial statements and notes should be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto as of and for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K/A filed with the SEC on July 27, 2018. Restatement of Prior Period Financial Statements As discussed in greater detail in Note 20 of the Company’s Form 10-K/A filed on July 27, 2018, the Company determined to restate its previously issued unaudited condensed consolidated financial statements for the quarterly periods within the years ended December 31, 2017 and 2016. The restatement corrected certain errors primarily related to the timing of the recognition of (i) revenue recognized for goods shipped and services performed and (ii) cost of goods sold for certain orders that were not recorded in the period in which the end product was sold to the customer and revenue was recognized. The condensed consolidated interim financial statements for the quarter ended March 31, 2017 presented herein include the impacts of the restatement on our condensed consolidated financial statements for such period included in our previously reported Quarterly Report on Form 10-Q. Description of the Business The Company was incorporated in the state of Delaware on January 3, 2006. The Company is a leading global marketing execution firm for some of the world's most marketing intensive companies, including those in the Fortune 1000, across a wide range of industries. As a comprehensive outsourced enterprise solution, the Company leverages proprietary technology, an extensive supplier network and deep domain expertise to streamline the creation, production and distribution of marketing and promotional materials, signage and displays, retail experiences, events and promotions and packaging across every major market worldwide. The items the Company sources are generally procured through the marketing supply chain and are referred to collectively as marketing materials. The Company’s technology and database of information is designed to capitalize on excess manufacturing capacity and other inefficiencies in the traditional marketing and print supply chain to obtain favorable pricing and to deliver high-quality products and services. The Company is organized and managed as two business segments, North America and International and is viewed as two operating segments by the chief operating decision maker for purposes of resource allocation and assessing performance. See Note 15 for further information about the Company’s reportable segments. Preparation of Financial Statements and Use of Estimates The preparation of the consolidated financial statements is in conformity with GAAP. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to product returns, allowance for doubtful accounts, inventories and inventory valuation, valuation and impairments of goodwill and long-lived assets, income taxes, accrued bonus, contingencies, stock-based compensation and litigation costs. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. These estimates form the basis for making judgments about the carrying value of assets and liabilities when those values are not readily apparent from other sources. Actual results may differ from those estimates. Foreign Currency Translation The Company determines the functional currency for its parent company and each of its subsidiaries by reviewing the currencies in which their respective operating activities occur. Assets and liabilities of these operations are translated into U.S. currency at the rates of exchange at the balance sheet date. Income and expense items are translated at average monthly rates of exchange. The resulting translation adjustments are included in accumulated other comprehensive loss, a separate component of stockholders’ equity. Transaction gains and losses arising from activities in other than the applicable functional currency are calculated using average exchange rates for the applicable period and reported in net income as a non-operating item in each period. Non-monetary balance sheet items denominated in a currency other than the applicable functional currency are translated using the historical rate. Revenue Recognition Revenue is measured based on consideration specified in a contract with a customer and the Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time. Unbilled revenue represents shipments or deliveries that have been made to customers for which the related account receivable has not yet been invoiced. Shipping and handling costs after control over a product has transferred to a customer are expensed as incurred and are included in cost of goods sold in the condensed consolidated statements of operations. In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers, we generally report revenue on a gross basis because we typically control the goods or services before transferring to the customer. Under these arrangements, we are primarily responsible for the fulfillment, including the acceptability, of the marketing materials and other products or services. In addition, we have reasonable discretion in establishing the price, and in some transactions, we also have inventory risk and are involved in the determination of the nature or characteristics of the marketing materials and products. In some arrangements, we are not primarily responsible for fulfilling the goods or services. In arrangements of this nature, we do not control the goods or services before they are transferred to the customer and such revenue is reported on a net basis. Some service revenue, including stand-alone creative and other services, may be earned over time; however, the difference from recognizing that revenue over time compared to a point in time (i.e., when the service is completed and accepted by the customer) is not material. Service revenue has not been material to our overall revenue to date. The Company records taxes collected from customers and remitted to governmental authorities on a net basis. Stock-Based Compensation The Company accounts for stock-based compensation awards to employees and directors in accordance with ASC 718, Compensation – Stock Compensation . Compensation expense is measured by determining the fair value of each award using the Black-Scholes option valuation model for stock options or the closing share price on the grant date for restricted shares and performance share units ("PSUs"). The fair value is then recognized over the requisite service period of the awards, which is generally the vesting period, on a straight-line basis for the entire award. On June 1, 2017, the Compensation Committee of the Board of Directors of the Company approved, pursuant to the 2006 Stock Incentive Plan, awards of PSUs for certain executive officers and employees. PSUs are performance-based awards that will settle in shares of the Company's common stock, in an amount between 0% and 200% of the target award level, based on the cumulative adjusted earnings per share and the return on invested capital achieved by the Company between April 1, 2017 and December 31, 2019. Compensation expense for PSUs is measured by determining the fair value of the award using the closing share price on the grant date and is recognized ratably from the grant date to the vesting date for the number of awards expected to vest. The amount of compensation expense recognized for PSUs is dependent upon a quarterly assessment of the likelihood of achieving the performance conditions. Stock-based compensation cost recognized during the period is based on the full grant date fair value of the share-based payment awards adjusted for any forfeitures during the period. The Company recorded $1.4 million and $1.4 million of stock-based compensation expense for the three months ended March 31, 2018 and 2017 , respectively. Recent Accounting Pronouncements Recently Adopted Accounting Standards In the first quarter of 2018, the Company adopted FASB Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) and all the related amendments (the “new revenue standard”), which outlines a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. The Company adopted the new revenue standard using the modified retrospective transition method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings and the effects of the adoption of the new revenue standard on the Company's statement of cash flows are discussed in Note 2. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption to be immaterial to our net income on an ongoing basis. In the first quarter of 2018, the Company adopted ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments , which amends ASC 230, Statement of Cash Flows . This ASU provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists. The new guidance was applied retrospectively, and the impact of this adoption did not have a material effect on the consolidated financial statements. In the first quarter of 2018, the Company adopted ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory , which amends the timing of recognition of tax consequences of intercompany asset transfers other than inventory when the transfer occurs and removes the exception to postpone recognition until the asset has been sold to an outside party. The new guidance was applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. The impact of this adoption did not have a material effect on the consolidated financial statements. In the first quarter of 2018, the Company early adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test. The new guidance will be applied prospectively, and the impact of this adoption is not expected to have a material effect on the consolidated financial statements. In the first quarter of 2018, the Company adopted ASU No. 2017-09, Scope of Modification Accounting , which amends ASC 718, Compensation - Stock Compensation . This ASU amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. The new guidance will allow companies to make certain changes to awards without accounting for them as modifications. It does not change the accounting for modifications. The new guidance is applied prospectively to awards modified on or after the adoption date. The impact of this adoption did not have a material effect on the consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosure of key information about leasing arrangements. ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability for most leases in the balance sheet as well as other qualitative and quantitative disclosures. The ASU requires using a modified retrospective transition method; however, in January 2018, the FASB issued a proposed update to provide for an alternative transition method that would not require earlier periods to be restated at the adoption date. The ASU also provides certain practical expedients and is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In February 2018, the FASB issued Accounting Standards Update No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which amends ASC 220, Income Statement - Reporting Comprehensive Income . This ASU allows a reclassification from accumulated OCI to retained earnings for stranded tax effects resulting from tax reform. This update is effective for fiscal years beginning after December 15, 2018, including interim periods therein, and early adoption is permitted. The Company is evaluating the potential effects of the ASU on the consolidated financial statements. The effects of tax reform on the Company’s consolidated financial statements are outlined in Note 7.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605 Revenue Recognition . The following summarizes the significant changes in accounting treatment due to the adoption of the new revenue standard: • We recorded a net increase to opening retained earnings of $0.5 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606, with the impact primarily related to our capitalization of certain setup costs, inclusive of income tax effects. The details of the significant changes and quantitative impact of the changes for the three months ended March 31, 2018 are disclosed below. • The Company previously recognized setup costs related to new customers as selling, general and administrative expense when they were incurred. Under ASC 606, the Company capitalizes certain setup costs as costs to fulfill a contract and amortizes them consistently with the pattern of transfer of the good or service to which the asset relates. • The following tables summarize the impacts of ASC 606 adoption on the Company’s consolidated financial statements for the quarter ended March 31, 2018 (in thousands, except per share data). As Reported March 31, 2018 Adjustments As Adjusted Without Adoption of ASC 606 Condensed consolidated balance sheet Assets: Other non-current assets $ 2,139 $ (623 ) $ 1,516 Liabilities: Deferred income taxes 12,208 167 12,375 Stockholders' equity: Retained earnings 123,393 (456 ) 122,937 As Reported Three Months Ended March 31, 2018 Adjustments As Adjusted Without Adoption of ASC 606 Condensed consolidated statement of operations Operating expenses: Selling, general and administrative expenses $ 61,167 $ (26 ) $ 61,141 Income from operations 1,241 26 1,267 Loss before income taxes (1,111 ) 26 (1,085 ) Income tax expense 573 6 579 Net loss (1,684 ) 20 (1,664 ) Basic loss per share $ (0.03 ) $ — $ (0.03 ) Diluted loss per share $ (0.03 ) $ — $ (0.03 ) The adoption of ASC 606 had no impact on the Company’s cash flow from operations and resulted in offsetting shifts in cash flows throughout net (loss) income and various changes in working capital balances. Nature of Goods and Services The Company primarily generates revenues from the procurement of marketing materials for customers. Service revenue including creative, design, installation, warehousing and other services has not been material to the Company’s overall revenue to date. Products and services may be sold separately or in bundled packages. For bundled packages, the Company accounts for individual products and services separately if they are distinct - that is, if a product or service is separately identifiable from other items in the bundled package and if a customer can benefit from it on its own or with other resources that are readily available to the customer. We include any fixed charges per our contracts as part of the total transaction price. The transaction price is allocated between separate products and services in a bundle based on their standalone selling prices. The standalone selling prices are generally determined based on the prices at which the Company separately sells the products and services. Contracts may include variable consideration (for example, customer incentives like rebates), and to the extent that variable consideration is not constrained, we include the expected amount within the total transaction price and update our assumptions over the duration of the contract. The constraint will generally not result in a reduction in the estimated transaction price. The Company’s performance obligations related to the procurement of marketing materials are typically satisfied upon shipment or delivery of our products to customers. Payment is typically due from the customer at this time or shortly thereafter. Unbilled revenue represents shipments or deliveries that have been made to customers for which the related account receivable has not yet been invoiced. The Company does not have material future performance obligations that extend beyond one year. Some service revenue may be recognized over time but the difference from recognizing that revenue over time versus at a point in time when the service is completed and accepted by the customer has not been material to the Company’s overall revenue to date. Disaggregation of Revenue The following table is a summary of revenue disaggregated by primary geographical market, which also includes a reconciliation of the disaggregated revenue with the reportable segments, for the three months ended March 31, 2018 (in thousands). Reportable Segments Geographical Market North America International Total United States and Canada $ 189,277 $ — $ 189,277 Europe and Asia — 64,914 64,914 Latin America — 20,348 20,348 Total $ 189,277 $ 85,262 $ 274,539 Contract Balances Contract liabilities were $31.5 million and $17.6 million as of March 31, 2018 and January 1, 2018, respectively, and are referred to as deferred revenue in the condensed consolidated financial statements. We record deferred revenue when cash payments are received or due in advance of our performance. The increase in the deferred revenue balance for the three months ended March 31, 2018 is primarily driven by cash payments received or due in advance of satisfying our performance obligations as well as the recognition of a contract liability for projects where we have a right to payment (approximately $6.5 million ), offset by $8.7 million of revenue recognized from the deferred revenue balance as of January 1, 2018. There were no contract assets during the period. Transaction Price Allocated to Remaining Performance Obligations ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of March 31, 2018. The Company does not have material future performance obligations that extend beyond one year. Accordingly, the Company has applied the optional exemption for contracts that have an original expected duration of one year or less. The nature of the remaining performance obligations as well as the nature of the variability and how it will be resolved is described above. Costs to Obtain a Customer Contract The Company incurs certain incremental costs to obtain a contract that the Company expects to recover. The Company applies a practical expedient and recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. No incremental costs to obtain a contract incurred by the Company prior to adoption of ASC 606 or during the quarter ended March 31, 2018, are required to be capitalized. These costs primarily relate to commissions paid to our account executives and are included in selling, general and administrative expenses. Costs to Fulfill a Customer Contract The Company capitalized certain setup costs related to new customers as fulfillment costs upon adoption of ASU 2014-09 and during the quarter ended March 31, 2018. The closing balance at March 31, 2018 was $0.6 million . Capitalized contract costs are amortized over the expected period of benefit using the straight-line method which is generally three years. In the quarter ended March 31, 2018, the amount of amortization was $0.1 million , and there was no impairment loss in relation to the costs capitalized.

Contingent Consideration

Contingent Consideration	3 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
Contingent Consideration	Contingent Consideration In connection with certain of the Company’s acquisitions, contingent consideration is payable in cash or common stock of the Company upon the achievement of certain performance measures over future periods. The Company recorded the acquisition date fair value of the contingent consideration liability as additional purchase price. As discussed in Note 11, the process for determining the fair value of the contingent consideration liability consists of reviewing financial forecasts and assessing the likelihood of reaching the required performance measures based on factors specific to each acquisition as well as the Company’s historical experience with similar arrangements. Subsequent to the acquisition date, the Company estimates the fair value of the contingent consideration liability each reporting period and any adjustments made to the fair value are recorded in the Company’s results of operations. If an acquisition reaches the required performance measures within the reporting period, the fair value of the contingent consideration liability is increased to 100% , the maximum potential payment, and reclassified to due to seller. During the three months ended March 31, 2018 , the Company had no adjustments to contingent consideration as the related liability was settled in the third quarter of 2017. There were no contingent consideration obligations outstanding as of December 31, 2017 or March 31, 2018. During the three months ended March 31, 2017 , the Company recorded income of $1.0 million .

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The following is a summary of the goodwill balance for each reportable segment as of March 31, 2018 (in thousands): North America International Total Net goodwill as of December 31, 2017 $ 170,685 $ 29,262 $ 199,946 Foreign exchange impact (32 ) 828 796 Net goodwill as of March 31, 2018 $ 170,653 $ 30,090 $ 200,743 Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. In accordance with ASC 350, Intangibles – Goodwill and Other , goodwill is not amortized, but instead is tested for impairment annually, or more frequently if circumstances indicate a possible impairment may exist. The fair value estimates used in the goodwill impairment analysis require significant judgment. The Company's fair value estimates for purposes of performing the analysis are considered Level 3 fair value measurements. The fair value estimates were based on assumptions that management believes to be reasonable, but that are inherently uncertain, including estimates of future revenues and operating margins and assumptions about the overall economic climate and the competitive environment for the business. Absent any interim indicators of impairment, the Company tests for goodwill impairment as of the first day of the fourth fiscal quarter of each year. The Company does not believe that goodwill is impaired as of March 31, 2018 .

Other Intangible Assets

Other Intangible Assets	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Other Intangible Assets The following is a summary of the Company’s other intangible assets as of March 31, 2018 and December 31, 2017 (in thousands): March 31, December 31, 2017 Weighted Average Life Customer lists $ 75,124 $ 74,615 14.5 Non-compete agreements 974 964 4.0 Trade names 2,510 2,510 13.3 Patents 57 57 9.0 78,665 78,146 Less accumulated amortization (52,024 ) (50,583 ) Intangible assets, net $ 26,641 $ 27,563 In accordance with ASC 350, the Company amortizes its intangible assets with finite lives over their respective estimated useful lives and reviews for impairment whenever impairment indicators exist. Impairment indicators could include significant under-performance relative to the historical or projected future operating results, significant changes in the manner of use of assets, significant negative industry or economic trends or significant changes in the Company’s market capitalization relative to net book value. Any changes in key assumptions used by the Company, including those set forth above, could result in an impairment charge and such a charge could have a material adverse effect on the Company’s consolidated results of operations. The Company’s intangible assets consist of customer lists, non-compete agreements, trade names and patents. The Company’s customer lists, which have an estimated weighted-average useful life of approximately fourteen and a half years, are being amortized using the economic life method. The Company’s non-compete agreements, trade names and patents are being amortized on a straight-line basis over their estimated weighted-average useful lives of approximately four years, thirteen years and nine years, respectively. Amortization expense related to these intangible assets was $1.2 million and $1.2 million for the three months ended March 31, 2018 and 2017 , respectively. The estimated amortization expense for the remainder of 2018 and each of the next five years and thereafter is as follows (in thousands): Remainder of 2018 $ 3,454 2019 4,372 2020 4,201 2021 3,896 2022 3,431 Thereafter 7,287 $ 26,641

Restructuring Activities and Ot

Restructuring Activities and Other Charges	3 Months Ended
	Mar. 31, 2018
Restructuring and Related Activities [Abstract]
Restructuring Activities and Other Charges	Restructuring Activities and Other Charges On December 14, 2015, the Company approved a global realignment plan that allowed the Company to more efficiently meet client needs across its international platform. Through improved integration of global resources, the plan created back office and other efficiencies and allowed for the elimination of approximately 100 positions. In connection with these actions, the Company incurred pre-tax cash restructuring charges of $6.7 million , the majority of which were recognized during 2016. These cash charges included approximately $5.6 million for employee severance and related benefits and $1.1 million for lease and contract terminations and other associated costs. The charges were all incurred by the end of 2016 with the final payouts of the charges expected to occur in 2018. As required by law, the Company consulted with each of the affected countries’ local Works Councils throughout the plan. For the three months ended March 31, 2018 , the Company recognized no additional restructuring charges related to this plan, as the plan was completed by the end of 2016. The following table summarizes the accrued restructuring activities for this plan for the three months ended March 31, 2018 (in thousands): Employee Severance and Related Benefits Lease and Contract Termination Costs Other Total Balance at December 31, 2017 $ 484 $ — $ — $ 484 Cash payments (47 ) — — (47 ) Balance at March 31, 2018 $ 437 $ — $ — $ 437

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Reform Act”) was enacted into law. The Tax Reform Act significantly revises the U.S. corporate income tax laws by, amongst other things, reducing the corporate income tax rate from 35.0% to 21.0%. In addition to the tax rate reduction, the legislation establishes new provisions that affect our 2018 results, including but not limited to, the creation of a new minimum tax called the base erosion anti-abuse tax ("BEAT"); a new provision that taxes U.S. allocated expenses (e.g. interest and general administrative expenses) and currently taxes certain income from foreign operations (Global Intangible Low-Tax Income, or “GILTI”); a new limitation on deductible interest expense; and limitations on the deductibility of certain employee compensation. Certain impacts of the new legislation would have generally required accounting to be completed in the period of enactment, however in response to the complexities of this new legislation, the SEC issued guidance to provide companies with relief. The SEC provided up to a one-year window for companies to finalize the accounting for the impacts of this new legislation and we anticipate finalizing our accounting during 2018. While our accounting for the enactment of the new U.S. tax legislation is not complete, we have recorded an estimate of our full-year net GILTI cost in the amount of $0.2 million in the three months ended March 31, 2018 . We have not changed our provisional transition tax estimated and recorded in the year ended December 31, 2017 . The Company's tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. The Company’s reported effective income tax rate was (51.6)% and 29.3% for the three months ended March 31, 2018 and 2017 , respectively. The Company’s effective income tax rate differs from the U.S. federal statutory rate each year due to certain operations that are subject to tax incentives, state and local taxes, and foreign taxes that are different than the U.S. federal statutory rate. In addition, the effective tax rate can be impacted each period by discrete factors and events. The effective tax rates were affected by the fair value changes to contingent consideration for the three months ended March 31, 2017 only as the obligation was settled in the third quarter of 2017. Portions of the total amount recognized from fair value changes to contingent consideration relate to non-taxable acquisitions for which deferred taxes are not recognized, consistent with the treatment of goodwill and intangible assets for those acquisitions under GAAP. In the three months ended March 31, 2018 and 2017 , $0.0 million and $1.0 million of income, respectively, was recognized from fair value changes to contingent consideration. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will expire unutilized. At the end of each reporting period, the Company reviews the realizability of its deferred tax assets. Additionally, the Company continues to incur losses in jurisdictions which have valuation allowances against tax loss carryforwards, so a tax benefit has not been recognized in the financial statements for these losses.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic (loss) earnings per common share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding for the period. Diluted (loss) earnings per share is calculated by dividing net (loss) income by the weighted average shares outstanding assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock and restricted stock units were settled for common shares during the period. In addition, dilutive shares include any shares issuable related to PSUs for which the performance conditions have been met as of the end of the period. There were no dilutive effects during the three months ended March 31, 2018 as a result of the net loss. During the three months ended March 31, 2017 , 2.7 million options and restricted common shares were excluded from the calculation as these options and restricted common shares were anti-dilutive. The computations of basic and diluted (loss) earnings per common share for the three months ended March 31, 2018 and 2017 are as follows (in thousands, except per share amounts): Three Months Ended March 31, 2018 2017 (as restated) Numerator: Net (loss) income $ (1,684 ) $ 5,678 Denominator: Weighted-average shares outstanding – basic 53,716 54,056 Effect of dilutive securities: Employee and director stock options and restricted common shares — 548 Contingently issuable shares — 125 Weighted-average shares outstanding – diluted 53,716 54,729 Basic (loss) earnings per share $ (0.03 ) $ 0.11 Diluted (loss) earnings per share $ (0.03 ) $ 0.10

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Mar. 31, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive (Loss)	Accumulated Other Comprehensive Loss The table below presents changes in the components of accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 Foreign currency translation adjustments Foreign currency translation adjustments (as restated) Balance, beginning of period $ (19,229 ) $ (20,949 ) Other comprehensive income before reclassifications 3,364 1,979 Net current-period other comprehensive income 3,364 1,979 Balance, end of period $ (15,865 ) $ (18,970 )

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company provides print procurement services to Arthur J. Gallagher & Co. J. Patrick Gallagher, Jr., a member of the Company’s Board of Directors, is the Chairman, President and Chief Executive Officer of Arthur J. Gallagher & Co. and has a direct ownership interest in Arthur J. Gallagher & Co. The total amount billed for such print procurement services during the three months ended March 31, 2018 and 2017 was 0.3 million and $0.4 million , respectively. Additionally, Arthur J. Gallagher & Co. has provided insurance brokerage and risk management services to the Company. As consideration of these services, Arthur J. Gallagher & Co. billed the Company $0.0 million and $0.1 million for the three months ended March 31, 2018 and 2017 , respectively. The amounts receivable from Arthur J. Gallagher & Co. were $0.2 million and $0.2 million as of March 31, 2018 and December 31, 2017 , respectively. In the fourth quarter of 2017 , the Company began providing marketing execution services to Enova International, Inc. ("Enova"). David Fischer, a member of the Company's Board of Directors, is the Chairman and Chief Executive Officer of Enova and has direct ownership in Enova. The total amount billed for such services during the three months ended March 31, 2018 is $1.8 million . The amounts receivable from Enova were $0.3 million and $0.1 million as of March 31, 2018 and December 31, 2017 , respectively.

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement ASC 820, Fair Value Measurement , includes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on observable or unobservable inputs to valuation techniques that are used to measure fair value. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: • Level 1: Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data. • Level 3: Inputs that are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The book value of the debt under the Credit Agreement, dated as of August 2, 2010, subsequently amended most recently as of February 3, 2017 and further discussed in Note 13, is considered to approximate its fair value as of March 31, 2018 as the interest rates are considered in line with current market rates. This valuation method utilizes Level 1 inputs.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies In October 2013, the Company removed the former owner of Productions Graphics from his role as President of Productions Graphics, the Company’s French subsidiary. He had been in that role since the Company’s 2011 acquisition of Productions Graphics, a European business then principally owned by him. In December 2013, the former owner of Productions Graphics initiated a wrongful termination claim in the Commercial Court of Paris seeking approximately €0.7 million (approximately $1.0 million ) in fees and damages. In anticipation of this claim, in November 2013, he also obtained a judicial asset attachment order in the amount of €0.7 million (approximately $1.0 million ) as payment security; the attachment order was confirmed in January 2014, and the Company filed an appeal of the order. In March 2015, the appellate court ruled in the Company’s favor in the attachment proceedings, releasing all attachments. The Company disputes the allegations of the former owner of Productions Graphics and intends to vigorously defend these matters. In February 2014, based on a review the Company initiated into certain transactions associated with the former owner of Productions Graphics, the Company concluded that he had engaged in fraud by inflating the results of the Productions Graphics business in order to induce the Company to pay him €7.1 million in contingent consideration pursuant to the acquisition agreement. In light of those findings, in February 2014, the Company filed a criminal complaint in France seeking to redress the harm caused by his conduct and this proceeding is currently pending. In addition, in September 2015, the Company initiated a civil claim in the Paris Commercial Court against the former owner of Productions Graphics, seeking civil damages to redress these same harms. In addition to these pending matters, there may be other potential disputes between the Company and the former owner of Productions Graphics relating to the acquisition agreement. The Company had paid €5.8 million (approximately $8.0 million ) in fixed consideration and €7.1 million (approximately $9.4 million ) in contingent consideration to the former owner of Productions Graphics; the remaining maximum contingent consideration under the acquisition agreemen t was €34.5 million (approximately $37.6 million ) and the Company has determined that none of this amount was earned and payable. In January 2014, a former finance employee of Productions Graphics initiated wrongful termination and overtime claims in the Labor Court of Boulogne-Billancourt, and he currently seeks damages of approximately €0.6 million (approximately $0.7 million ). The Company disputes these allegations and intends to vigorously defend these matters. In addition, the Company’s criminal complaint in France, described above, seeks to redress harm caused by this former employee in light of his participation in the fraudulent transactions described above. The labor claim has been stayed in deference to the Company’s related criminal complaint. In May 2018, shortly following the Company’s announcement of its intention to restate certain historical financial statements, a putative securities class action complaint was filed against the Company and certain of its current and former officers and directors. The action, Errol Brown, et al., v. InnerWorkings, Inc., et al., is currently pending before the United States District Court for the Central District of California. The complaint alleges claims pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Allegations in the complaint include that the Company and its current and former officers and directors made untrue statements or omissions of material fact by issuing inaccurate financial statements for the fiscal years ending December 31, 2015, 2016, and 2017, as well as all interim periods. The putative class seeks an unspecified amount of monetary damages as well as reimbursement of fees and costs, including reasonable attorneys’ fees, and other costs. The Company and individual defendants dispute the claims. A motion for appointment of lead plaintiff and lead counsel was filed on July 9, 2018, and is scheduled for hearing on August 6, 2018.

Revolving Credit Facilities

Revolving Credit Facilities	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Revolving Credit Facilities	Revolving Credit Facilities The Company entered into a Credit Agreement, dated as of August 2, 2010, subsequently amended most recently as of February 3, 2017, among the Company, the lenders party thereto and Bank of America, N.A., as Administrative Agent (the “Credit Agreement”). The amendment to the Credit Agreement enables InnerWorkings to participate in receivables sale agreements with certain customers' lenders. The Credit Agreement includes a revolving commitment amount of $175 million in the aggregate with a maturity date of September 25, 2019 , and provides the Company the right to increase the aggregate commitment amount by an additional $50 million . Outstanding borrowings under the revolving credit facility are guaranteed by the Company’s material domestic subsidiaries, as defined in the Credit Agreement. The Company’s obligations under the Credit Agreement and such domestic subsidiaries’ guaranty obligations are secured by substantially all of their respective assets. The ranges of applicable rates charged for interest on outstanding loans and letters of credit are 125 - 250 basis point spread for letter of credit fees and loans based on the Eurodollar rate and 25 - 150 basis point spread for loans based on the base rate. The terms of the Credit Agreement include various covenants, including covenants that require the Company to maintain a maximum leverage ratio and a minimum interest coverage ratio. The Credit Agreement requires the Company to maintain a leverage ratio of no more than 3.0 to 1.0 for the trailing twelve months ended March 31, 2018 and each period thereafter. The Company is also required to maintain an interest coverage ratio of no less than 5.0 to 1.0 . The Company is in compliance with all debt covenants as of March 31, 2018 . At March 31, 2018 , the Company had $22.0 million of unused availability under the Credit Agreement and $0.8 million of letters of credit which have not been drawn upon. On February 22, 2016, the Company entered into a Revolving Credit Facility (the “Facility”) with Bank of America N.A. to support ongoing working capital needs of the Company. The Facility includes a revolving commitment amount of $5.0 million whereby maturity dates vary based on each individual drawdown. Outstanding borrowings under the Facility are guaranteed by the Company’s assets. Borrowings and repayments are made in renminbi, the official Chinese currency. The applicable interest rate is 110% of the People’s Bank of China’s base rate. The terms of the Facility include limitations on use of funds for working capital purposes as well as customary representations and warranties made by the Company. At March 31, 2018 , the Company had $4.2 million of unused availability under the Facility.

Share Repurchase Program

Share Repurchase Program	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Share Repurchase Program	Share Repurchase Program On February 12, 2015, the Company announced that its Board of Directors approved a share repurchase program authorizing the repurchase of up to an aggregate of $20 million of its common stock through open market and privately negotiated transactions over a two -year period. On November 2, 2016, the Board of Directors approved a two-year extension to the share repurchase program through February 28, 2019. On May 4, 2017, the Board of Directors authorized the repurchase of up to an additional $30.0 million of its common stock through open market and privately negotiated transactions over a two-year period ending May 31, 2019. The timing and amount of any share repurchases will be determined based on market conditions, share price and other factors, and the program may be discontinued or suspended at any time. Repurchases will be made in compliance with SEC rules and other legal requirements. During the three months ended March 31, 2018 , the Company repurchased 931,749 shares of its common stock for $8.7 million in the aggregate at an average cost of $9.31 per share under this program. Of this amount, $7.9 million was paid for as of March 31, 2018 , with the remaining $0.7 million , which was paid in April 2018, accrued within other current liabilities in the condensed consolidated balance sheet as of March 31, 2018 . During the three months ended March 31, 2017 , the Company repurchased 569,624 shares of its common stock for $5.5 million in the aggregate at an average cost of $9.64 per share. Of this amount, $4.3 million was paid for as of March 31, 2017 , with the remaining $1.2 million , which was paid in April 2017 , accrued within other current liabilities in the condensed consolidated balance sheet as of March 31, 2017 . Shares repurchased under this program are recorded at acquisition cost, including related expenses. The Company repurchased 1,735,983 shares of its common stock for $17.0 million at an average cost of $9.75 after the balance sheet date through July 31, 2018 , the date the financial statements were available to be issued. The impact did not have a material impact on EPS.

Business Segments

Business Segments	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Business Segments	Business Segments Segment information is prepared on the same basis that our Chief Executive Officer, who is our chief operating decision maker, manages the segments, evaluates financial results, and makes key operating decisions. The Company is organized and managed as two business segments: North America and International. The North America segment includes operations in the United States and Canada; the International segment includes all other operations across Europe, Asia, Mexico, Central America and South America; Other consists of intersegment eliminations, shared service activities and unallocated corporate expenses. All transactions between segments are presented at their gross amounts and eliminated through Other. Management evaluates the performance of its operating segments based on revenues and Adjusted EBITDA, which is a non-GAAP financial measure. The accounting policies of each of the operating segments are the same as those described in the summary of significant accounting policies in Note 1. Adjusted EBITDA represents income from operations excluding depreciation and amortization, stock-based compensation expense, income/expense related to changes in the fair value of contingent consideration liabilities and restructuring and other charges. Management does not evaluate the performance of its operating segments using asset measures. The table below presents financial information for the Company’s reportable segments and Other for the three month periods noted (in thousands): North America International Other Total Three Months Ended March 31, 2018: Revenue from third parties $ 189,277 $ 85,262 $ — $ 274,539 Revenue from other segments 1,420 2,776 (4,196 ) — Total revenue 190,697 88,038 (4,196 ) 274,539 Adjusted EBITDA (1) 17,216 2,092 (11,958 ) 7,350 Three Months Ended March 31, 2017 (as restated): Revenue from third parties $ 182,498 $ 81,907 $ — $ 264,405 Revenue from other segments 1,755 3,359 (5,114 ) — Total revenue 184,253 85,266 (5,114 ) 264,405 Adjusted EBITDA (1) 18,681 2,871 (9,044 ) 12,508 (1) Adjusted EBITDA, which represents income from operations with the addition of depreciation and amortization, stock-based compensation expense, change in fair value of contingent consideration liabilities, and professional fees related to ASC 606 implementation, is considered a non-GAAP financial measure under SEC regulations. Income from operations is the most directly comparable financial measure calculated in accordance with GAAP. The Company presents this measure as supplemental information to help investors better understand trends in its business results over time. The Company’s management team uses Adjusted EBITDA to evaluate the performance of the business. Adjusted EBITDA is not equivalent to any measure of performance required to be reported under GAAP, nor should this data be considered an indicator of the Company’s overall financial performance and liquidity. Moreover, the Adjusted EBITDA definition the Company uses may not be comparable to similarly titled measures reported by other companies. The table below reconciles the total of the reportable segments' Adjusted EBITDA and the Adjusted EBITDA included in Other to income before income taxes (in thousands): Three Months Ended March 31, 2018 2017 (as restated) Adjusted EBITDA 7,350 12,508 Depreciation and amortization (3,659 ) (2,904 ) Stock-based compensation expense (1,417 ) (1,419 ) Change in fair value of contingent consideration — 1,040 Professional fees related to ASC 606 implementation (1,033 ) — Income from operations 1,241 9,225 Interest income 62 34 Interest expense (1,568 ) (1,003 ) Other, net (846 ) (224 ) (Loss) income before income taxes $ (1,111 ) $ 8,032

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation of Interim Financial Statements	Basis of Presentation of Interim Financial Statements The accompanying unaudited condensed consolidated financial statements of InnerWorkings, Inc. and subsidiaries (the “Company”) included herein have been prepared to conform to the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments considered necessary for a fair presentation of the accompanying unaudited financial statements have been included, and all adjustments are of a normal and recurring nature. The operating results for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year ending December 31, 2018 . These condensed consolidated interim financial statements and notes should be read in conjunction with the Company’s Consolidated Financial Statements and Notes thereto as of and for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K/A filed with the SEC on July 27
Description of the Business	Description of the Business The Company was incorporated in the state of Delaware on January 3, 2006. The Company is a leading global marketing execution firm for some of the world's most marketing intensive companies, including those in the Fortune 1000, across a wide range of industries. As a comprehensive outsourced enterprise solution, the Company leverages proprietary technology, an extensive supplier network and deep domain expertise to streamline the creation, production and distribution of marketing and promotional materials, signage and displays, retail experiences, events and promotions and packaging across every major market worldwide. The items the Company sources are generally procured through the marketing supply chain and are referred to collectively as marketing materials. The Company’s technology and database of information is designed to capitalize on excess manufacturing capacity and other inefficiencies in the traditional marketing and print supply chain to obtain favorable pricing and to deliver high-quality products and services. The Company is organized and managed as two business segments, North America and International and is viewed as two operating segments by the chief operating decision maker for purposes of resource allocation and assessing performance. See Note 15 for further information about the Company’s reportable segments.
Preparation of Financial Statements and Use of Estimates	Preparation of Financial Statements and Use of Estimates The preparation of the consolidated financial statements is in conformity with GAAP. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to product returns, allowance for doubtful accounts, inventories and inventory valuation, valuation and impairments of goodwill and long-lived assets, income taxes, accrued bonus, contingencies, stock-based compensation and litigation costs. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. These estimates form the basis for making judgments about the carrying value of assets and liabilities when those values are not readily apparent from other sources. Actual results may differ from those estimates.
Foreign Currency Translation	Foreign Currency Translation The Company determines the functional currency for its parent company and each of its subsidiaries by reviewing the currencies in which their respective operating activities occur. Assets and liabilities of these operations are translated into U.S. currency at the rates of exchange at the balance sheet date. Income and expense items are translated at average monthly rates of exchange. The resulting translation adjustments are included in accumulated other comprehensive loss, a separate component of stockholders’ equity. Transaction gains and losses arising from activities in other than the applicable functional currency are calculated using average exchange rates for the applicable period and reported in net income as a non-operating item in each period. Non-monetary balance sheet items denominated in a currency other than the applicable functional currency are translated using the historical rate.
Revenue Recognition	Revenue Recognition Revenue is measured based on consideration specified in a contract with a customer and the Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer which may be at a point in time or over time. Unbilled revenue represents shipments or deliveries that have been made to customers for which the related account receivable has not yet been invoiced. Shipping and handling costs after control over a product has transferred to a customer are expensed as incurred and are included in cost of goods sold in the condensed consolidated statements of operations. In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers, we generally report revenue on a gross basis because we typically control the goods or services before transferring to the customer. Under these arrangements, we are primarily responsible for the fulfillment, including the acceptability, of the marketing materials and other products or services. In addition, we have reasonable discretion in establishing the price, and in some transactions, we also have inventory risk and are involved in the determination of the nature or characteristics of the marketing materials and products. In some arrangements, we are not primarily responsible for fulfilling the goods or services. In arrangements of this nature, we do not control the goods or services before they are transferred to the customer and such revenue is reported on a net basis. Some service revenue, including stand-alone creative and other services, may be earned over time; however, the difference from recognizing that revenue over time compared to a point in time (i.e., when the service is completed and accepted by the customer) is not material. Service revenue has not been material to our overall revenue to date. The Company records taxes collected from customers and remitted to governmental authorities on a net basis.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based compensation awards to employees and directors in accordance with ASC 718, Compensation – Stock Compensation . Compensation expense is measured by determining the fair value of each award using the Black-Scholes option valuation model for stock options or the closing share price on the grant date for restricted shares and performance share units ("PSUs"). The fair value is then recognized over the requisite service period of the awards, which is generally the vesting period, on a straight-line basis for the entire award. On June 1, 2017, the Compensation Committee of the Board of Directors of the Company approved, pursuant to the 2006 Stock Incentive Plan, awards of PSUs for certain executive officers and employees. PSUs are performance-based awards that will settle in shares of the Company's common stock, in an amount between 0% and 200% of the target award level, based on the cumulative adjusted earnings per share and the return on invested capital achieved by the Company between April 1, 2017 and December 31, 2019. Compensation expense for PSUs is measured by determining the fair value of the award using the closing share price on the grant date and is recognized ratably from the grant date to the vesting date for the number of awards expected to vest. The amount of compensation expense recognized for PSUs is dependent upon a quarterly assessment of the likelihood of achieving the performance conditions. Stock-based compensation cost recognized during the period is based on the full grant date fair value of the share-based payment awards adjusted for any forfeitures during the period. The Company recorded $1.4 million and $1.4 million of stock-based compensation expense for the three months ended March 31, 2018 and 2017 , respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Adopted Accounting Standards In the first quarter of 2018, the Company adopted FASB Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) and all the related amendments (the “new revenue standard”), which outlines a single comprehensive model for entities to use in accounting for revenue using a five-step process that supersedes virtually all existing revenue guidance. The Company adopted the new revenue standard using the modified retrospective transition method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings and the effects of the adoption of the new revenue standard on the Company's statement of cash flows are discussed in Note 2. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption to be immaterial to our net income on an ongoing basis. In the first quarter of 2018, the Company adopted ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments , which amends ASC 230, Statement of Cash Flows . This ASU provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists. The new guidance was applied retrospectively, and the impact of this adoption did not have a material effect on the consolidated financial statements. In the first quarter of 2018, the Company adopted ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory , which amends the timing of recognition of tax consequences of intercompany asset transfers other than inventory when the transfer occurs and removes the exception to postpone recognition until the asset has been sold to an outside party. The new guidance was applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. The impact of this adoption did not have a material effect on the consolidated financial statements. In the first quarter of 2018, the Company early adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test. The new guidance will be applied prospectively, and the impact of this adoption is not expected to have a material effect on the consolidated financial statements. In the first quarter of 2018, the Company adopted ASU No. 2017-09, Scope of Modification Accounting , which amends ASC 718, Compensation - Stock Compensation . This ASU amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. The new guidance will allow companies to make certain changes to awards without accounting for them as modifications. It does not change the accounting for modifications. The new guidance is applied prospectively to awards modified on or after the adoption date. The impact of this adoption did not have a material effect on the consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosure of key information about leasing arrangements. ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability for most leases in the balance sheet as well as other qualitative and quantitative disclosures. The ASU requires using a modified retrospective transition method; however, in January 2018, the FASB issued a proposed update to provide for an alternative transition method that would not require earlier periods to be restated at the adoption date. The ASU also provides certain practical expedients and is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In February 2018, the FASB issued Accounting Standards Update No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which amends ASC 220, Income Statement - Reporting Comprehensive Income . This ASU allows a reclassification from accumulated OCI to retained earnings for stranded tax effects resulting from tax reform. This update is effective for fiscal years beginning after December 15, 2018, including interim periods therein, and early adoption is permitted. The Company is evaluating the potential effects of the ASU on the consolidated financial statements. The effects of tax reform on the Company’s consolidated financial statements are outlined in Note 7.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Summary of Impact of ASC 606 Adoption	The following tables summarize the impacts of ASC 606 adoption on the Company’s consolidated financial statements for the quarter ended March 31, 2018 (in thousands, except per share data). As Reported March 31, 2018 Adjustments As Adjusted Without Adoption of ASC 606 Condensed consolidated balance sheet Assets: Other non-current assets $ 2,139 $ (623 ) $ 1,516 Liabilities: Deferred income taxes 12,208 167 12,375 Stockholders' equity: Retained earnings 123,393 (456 ) 122,937 As Reported Three Months Ended March 31, 2018 Adjustments As Adjusted Without Adoption of ASC 606 Condensed consolidated statement of operations Operating expenses: Selling, general and administrative expenses $ 61,167 $ (26 ) $ 61,141 Income from operations 1,241 26 1,267 Loss before income taxes (1,111 ) 26 (1,085 ) Income tax expense 573 6 579 Net loss (1,684 ) 20 (1,664 ) Basic loss per share $ (0.03 ) $ — $ (0.03 ) Diluted loss per share $ (0.03 ) $ — $ (0.03 )
Disaggregation of Revenue	The following table is a summary of revenue disaggregated by primary geographical market, which also includes a reconciliation of the disaggregated revenue with the reportable segments, for the three months ended March 31, 2018 (in thousands). Reportable Segments Geographical Market North America International Total United States and Canada $ 189,277 $ — $ 189,277 Europe and Asia — 64,914 64,914 Latin America — 20,348 20,348 Total $ 189,277 $ 85,262 $ 274,539

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Business Combination, Segment Allocation	The following is a summary of the goodwill balance for each reportable segment as of March 31, 2018 (in thousands): North America International Total Net goodwill as of December 31, 2017 $ 170,685 $ 29,262 $ 199,946 Foreign exchange impact (32 ) 828 796 Net goodwill as of March 31, 2018 $ 170,653 $ 30,090 $ 200,743

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule Of Finite Lived And Indefinite Lived Intangible Assets	The following is a summary of the Company’s other intangible assets as of March 31, 2018 and December 31, 2017 (in thousands): March 31, December 31, 2017 Weighted Average Life Customer lists $ 75,124 $ 74,615 14.5 Non-compete agreements 974 964 4.0 Trade names 2,510 2,510 13.3 Patents 57 57 9.0 78,665 78,146 Less accumulated amortization (52,024 ) (50,583 ) Intangible assets, net $ 26,641 $ 27,563
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The estimated amortization expense for the remainder of 2018 and each of the next five years and thereafter is as follows (in thousands): Remainder of 2018 $ 3,454 2019 4,372 2020 4,201 2021 3,896 2022 3,431 Thereafter 7,287 $ 26,641

Restructuring Activities and 26

Restructuring Activities and Other Charges (Tables)	3 Months Ended
	Mar. 31, 2018
Restructuring and Related Activities [Abstract]
Summary of Accrued Restructuring Activities	The following table summarizes the accrued restructuring activities for this plan for the three months ended March 31, 2018 (in thousands): Employee Severance and Related Benefits Lease and Contract Termination Costs Other Total Balance at December 31, 2017 $ 484 $ — $ — $ 484 Cash payments (47 ) — — (47 ) Balance at March 31, 2018 $ 437 $ — $ — $ 437

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Earnings Per Share Basic (loss) earnings per common share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding for the period. Diluted (loss) earnings per share is calculated by dividing net (loss) income by the weighted average shares outstanding assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock and restricted stock units were settled for common shares during the period. In addition, dilutive shares include any shares issuable related to PSUs for which the performance conditions have been met as of the end of the period. There were no dilutive effects during the three months ended March 31, 2018 as a result of the net loss. During the three months ended March 31, 2017 , 2.7 million options and restricted common shares were excluded from the calculation as these options and restricted common shares were anti-dilutive. The computations of basic and diluted (loss) earnings per common share for the three months ended March 31, 2018 and 2017 are as follows (in thousands, except per share amounts): Three Months Ended March 31, 2018 2017 (as restated) Numerator: Net (loss) income $ (1,684 ) $ 5,678 Denominator: Weighted-average shares outstanding – basic 53,716 54,056 Effect of dilutive securities: Employee and director stock options and restricted common shares — 548 Contingently issuable shares — 125 Weighted-average shares outstanding – diluted 53,716 54,729 Basic (loss) earnings per share $ (0.03 ) $ 0.11 Diluted (loss) earnings per share $ (0.03 ) $ 0.10

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Mar. 31, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Loss	The table below presents changes in the components of accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 Foreign currency translation adjustments Foreign currency translation adjustments (as restated) Balance, beginning of period $ (19,229 ) $ (20,949 ) Other comprehensive income before reclassifications 3,364 1,979 Net current-period other comprehensive income 3,364 1,979 Balance, end of period $ (15,865 ) $ (18,970 )

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The table below presents financial information for the Company’s reportable segments and Other for the three month periods noted (in thousands): North America International Other Total Three Months Ended March 31, 2018: Revenue from third parties $ 189,277 $ 85,262 $ — $ 274,539 Revenue from other segments 1,420 2,776 (4,196 ) — Total revenue 190,697 88,038 (4,196 ) 274,539 Adjusted EBITDA (1) 17,216 2,092 (11,958 ) 7,350 Three Months Ended March 31, 2017 (as restated): Revenue from third parties $ 182,498 $ 81,907 $ — $ 264,405 Revenue from other segments 1,755 3,359 (5,114 ) — Total revenue 184,253 85,266 (5,114 ) 264,405 Adjusted EBITDA (1) 18,681 2,871 (9,044 ) 12,508 (1) Adjusted EBITDA, which represents income from operations with the addition of depreciation and amortization, stock-based compensation expense, change in fair value of contingent consideration liabilities, and professional fees related to ASC 606 implementation, is considered a non-GAAP financial measure under SEC regulations. Income from operations is the most directly comparable financial measure calculated in accordance with GAAP. The Company presents this measure as supplemental information to help investors better understand trends in its business results over time. The Company’s management team uses Adjusted EBITDA to evaluate the performance of the business. Adjusted EBITDA is not equivalent to any measure of performance required to be reported under GAAP, nor should this data be considered an indicator of the Company’s overall financial performance and liquidity. Moreover, the Adjusted EBITDA definition the Company uses may not be comparable to similarly titled measures reported by other companies.
Schedule Of Earnings Before Interest Tax Depreciation And Amortization Reconciliation	The table below reconciles the total of the reportable segments' Adjusted EBITDA and the Adjusted EBITDA included in Other to income before income taxes (in thousands): Three Months Ended March 31, 2018 2017 (as restated) Adjusted EBITDA 7,350 12,508 Depreciation and amortization (3,659 ) (2,904 ) Stock-based compensation expense (1,417 ) (1,419 ) Change in fair value of contingent consideration — 1,040 Professional fees related to ASC 606 implementation (1,033 ) — Income from operations 1,241 9,225 Interest income 62 34 Interest expense (1,568 ) (1,003 ) Other, net (846 ) (224 ) (Loss) income before income taxes $ (1,111 ) $ 8,032

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details) $ in Thousands	Jun. 01, 2017	Mar. 31, 2018USD ($)Unit	Mar. 31, 2017USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of reportable segments | Unit		2
Stock-based compensation expense		$ 1,417	$ 1,419
Effect of adoption of new accounting pronouncement		$ 153
2006 Stock Incentive Plan | Minimum | Performance-based awards
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amount to be settled of target award level (as a percent)	0.00%
2006 Stock Incentive Plan | Maximum | Performance-based awards
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amount to be settled of target award level (as a percent)	200.00%

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Increase to opening retained earnings	$ 123,393,000	$ 124,442,000
Contract liabilities	31,500,000	17,600,000
Increase in deferred revenue	6,500,000
Contract assets	0	0
Revenue recognized from deferred revenue	8,700,000
Capitalized contract costs	600,000
Capitalized contract costs amortization	100,000
Capitalized contract cost impairment loss	$ 0
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Increase to opening retained earnings		$ 500,000

Revenue Recognition - Impact of

Revenue Recognition - Impact of ASC 606 Adoption (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Assets
Other non-current assets	$ 2,139		$ 1,636
Liabilities
Deferred income taxes	12,208		12,043
Stockholder's equity
Retained earnings	123,393		124,442
Operating expenses
Selling, general and administrative expenses	61,167	$ 53,615
Income from operations	1,241	9,225
Income (loss) before taxes	(1,111)	8,032
Income tax expense	573	2,354
Net (loss) income	$ (1,684)	$ 5,678
Basic earnings (loss) per share (in dollars per share)	$ (0.03)	$ 0.11
Diluted earnings (loss) per share (in dollars per share)	$ (0.03)	$ 0.10
Adjustments
Assets
Other non-current assets	$ (623)
Liabilities
Deferred income taxes	167
Stockholder's equity
Retained earnings	(456)
Operating expenses
Selling, general and administrative expenses	(26)
Income from operations	26
Income (loss) before taxes	26
Income tax expense	6
Net (loss) income	$ 20
Basic earnings (loss) per share (in dollars per share)	$ 0
Diluted earnings (loss) per share (in dollars per share)	$ 0
As Adjusted Without Adoption of ASC 606
Assets
Other non-current assets	$ 1,516
Liabilities
Deferred income taxes	12,375
Stockholder's equity
Retained earnings	122,937
Operating expenses
Selling, general and administrative expenses	61,141
Income from operations	1,267
Income (loss) before taxes	(1,085)
Income tax expense	579
Net (loss) income	$ (1,664)
Basic earnings (loss) per share (in dollars per share)	$ (0.03)
Diluted earnings (loss) per share (in dollars per share)	$ (0.03)
Accounting Standards Update 2014-09
Stockholder's equity
Retained earnings			$ 500

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Net Revenue From Third Parties	$ 274,539	$ 264,405
Revenue from contracts with customer	274,539
United States and Canada
Disaggregation of Revenue [Line Items]
Revenue from contracts with customer	189,277
Europe and Asia
Disaggregation of Revenue [Line Items]
Revenue from contracts with customer	64,914
Latin America
Disaggregation of Revenue [Line Items]
Revenue from contracts with customer	20,348
International
Disaggregation of Revenue [Line Items]
Net Revenue From Third Parties		$ 81,907
North America
Disaggregation of Revenue [Line Items]
Revenue from contracts with customer	189,277
North America | United States and Canada
Disaggregation of Revenue [Line Items]
Net Revenue From Third Parties	189,277
North America | Europe and Asia
Disaggregation of Revenue [Line Items]
Revenue from contracts with customer	0
North America | Latin America
Disaggregation of Revenue [Line Items]
Revenue from contracts with customer	0
International | United States and Canada
Disaggregation of Revenue [Line Items]
Revenue from contracts with customer	0
International | Europe and Asia
Disaggregation of Revenue [Line Items]
Revenue from contracts with customer	64,914
International | Latin America
Disaggregation of Revenue [Line Items]
Revenue from contracts with customer	20,348
International | International
Disaggregation of Revenue [Line Items]
Net Revenue From Third Parties	$ 85,262

Contingent Consideration - Cont

Contingent Consideration - Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Business Combinations [Abstract]
Fair value measurement probability percentage	100.00%
Fair value of contingent consideration adjustment expense (income)	$ 0	$ 1,040

Goodwill (Details)

Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Goodwill [Roll Forward]
Net goodwill as of December 31, 2016	$ 199,946
Foreign exchange impact	796
Net goodwill as of September 30, 2017	200,743
North America
Goodwill [Roll Forward]
Net goodwill as of December 31, 2016	170,685
Foreign exchange impact	(32)
Net goodwill as of September 30, 2017	170,653
International
Goodwill [Roll Forward]
Net goodwill as of December 31, 2016	29,262
Foreign exchange impact	828
Net goodwill as of September 30, 2017	$ 30,090

Other Intangible Assets - Sched

Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 78,665	$ 78,146
Less accumulated amortization	(52,024)	(50,583)
Intangible assets, net	26,641	27,563
Trade names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 2,510	2,510
Acquired finite-lived intangible assets, weighted average useful life	13 years 3 months 18 days
Customer lists [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 75,124	74,615
Acquired finite-lived intangible assets, weighted average useful life	14 years 6 months
Noncompete agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 974	964
Acquired finite-lived intangible assets, weighted average useful life	4 years
Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 57	$ 57
Acquired finite-lived intangible assets, weighted average useful life	9 years

Other Intangible Assets - Addit

Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization Of Intangible Assets	$ 1.2	$ 1.2

Other Intangible Assets - Sch38

Other Intangible Assets - Schedule of Other Intangible Amortization (Details) $ in Thousands	Mar. 31, 2018USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2017	$ 3,454
2,018	4,372
2,019	4,201
2,020	3,896
2,021	3,431
Thereafter	7,287
Finite-Lived Intangible Assets, Net	$ 26,641

Restructuring Activities and 39

Restructuring Activities and Other Charges (Details) $ in Thousands	Dec. 14, 2015USD ($)employee	Mar. 31, 2018USD ($)
Restructuring Reserve [Roll Forward]
Balance at December 31, 2017		$ 484
Cash payments		(47)
Balance at March 31, 2018		437
Number of positions eliminated | employee	100
Restructuring charges	$ 6,700	0
Employee Severance [Member]
Restructuring Reserve [Roll Forward]
Balance at December 31, 2017		484
Cash payments		(47)
Balance at March 31, 2018		437
Restructuring charges	5,600
Contract Termination [Member]
Restructuring Reserve [Roll Forward]
Balance at December 31, 2017		0
Cash payments		0
Balance at March 31, 2018		0
Restructuring charges	$ 1,100
Other Restructuring [Member]
Restructuring Reserve [Roll Forward]
Balance at December 31, 2017		0
Cash payments		0
Balance at March 31, 2018		$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate percentage	(51.60%)	29.30%
Fair value of contingent consideration adjustment expense (income)	$ 0	$ 1,040
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax, Provisional Income Tax Expense	200
Benefit to income tax expense	$ (573)	$ (2,354)

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Details) shares in Millions	3 Months Ended
	Mar. 31, 2017shares
Earnings Per Share [Abstract]
Options and restricted common shares excluded from earnings per share calculation (in shares)	2.7

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		2,700
Numerator:
Net (loss) income	$ (1,684)	$ 5,678
Denominator:
Weighted-average shares outstanding – basic (in shares)	53,716	54,056
Effect of dilutive securities:
Employee and director stock options and restricted common shares (in shares)	0	548
Contingently issuable shares (in shares)	0	(125)
Weighted-average shares outstanding – diluted (in shares)	53,716	54,729
Basic earnings per share (in dollars per share)	$ (0.03)	$ 0.11
Diluted earnings per share (in dollars per share)	$ (0.03)	$ 0.10

Accumulated Other Comprehensi43

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive loss - Beginning Balance	$ (19,229)	$ (20,949)
Other comprehensive income before reclassifications	3,364	1,979
Net current-period other comprehensive income	3,364	1,979
Accumulated other comprehensive loss - Ending Balance	$ (15,865)	$ (18,970)

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Arthur J.Gallagher Co [Member]
Related Party Transaction [Line Items]
Net amount receivable from related parties	$ 0.2		$ 0.2
Print procurement services	0.3	$ 0.4
Insurance and risk management services	0	$ 0.1
Enova Inc. [Member]
Related Party Transaction [Line Items]
Net amount receivable from related parties	0.3		$ 0.1
Print procurement services	$ 1.8

Commitments and Contingencies (

Commitments and Contingencies (Details) € in Millions, $ in Millions	1 Months Ended
	Jan. 31, 2014USD ($)	Jan. 31, 2014EUR (€)	Dec. 31, 2013USD ($)	Dec. 31, 2013EUR (€)	Nov. 30, 2013USD ($)	Nov. 30, 2013EUR (€)	Dec. 31, 2015USD ($)	Dec. 31, 2015EUR (€)	Feb. 28, 2014EUR (€)
Wrongful Termination Lawsuit - Productions Graphics [Member]
Other Commitments [Line Items]
Loss contingency, damages sought			$ 1	€ 0.7	$ 1	€ 0.7
Loss contingency, damages value, contingent consideration							$ 9.4	€ 7.1	€ 7.1
Loss contingency, damages value, fixed consideration							8	5.8
Loss contingency, damages maximum, contingent consideration							$ 37.6	€ 34.5
Employment Arbitration Claim [Member]
Other Commitments [Line Items]
Loss contingency, damages sought	$ 0.7	€ 0.6

Revolving Credit Facilities (De

Revolving Credit Facilities (Details)	Feb. 22, 2016USD ($)	Mar. 31, 2018USD ($)	Aug. 10, 2010USD ($)
Line of Credit Facility [Line Items]
Maturity date		Sep. 25, 2019
Required ratio of indebtedness to net capital		3
Required interest coverage ratio		5
Letters of credit to be drawn		$ 800,000
Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.25%
Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.50%
Eurodollar [Member] | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate		0.25%
Eurodollar [Member] | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.50%
Base Rate [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	110.00%
International
Line of Credit Facility [Line Items]
Revolving commitment amount	$ 5,000,000
Unused capacity		$ 4,200,000
North America
Line of Credit Facility [Line Items]
Unused capacity		$ 22,000,000
August 2010 Credit Facility Agreement [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Revolving commitment amount			$ 175,000,000
Increase in aggregate commitment amount			$ 50,000,000

Share Repurchase Program (Detai

Share Repurchase Program (Details) - USD ($)	Feb. 12, 2015	Apr. 30, 2018	Apr. 30, 2017	Mar. 31, 2018	Mar. 31, 2017	Jul. 31, 2018	May 04, 2017
Equity, Class of Treasury Stock [Line Items]
Authorized amount for repurchase	$ 20,000,000						$ 30,000,000
Repurchase program period	2 years
Stock Repurchased During Period, Shares				931,749	569,624
Stock Repurchased During Period, Value				$ (8,671,000)	$ (5,500,000)
Treasury Stock Acquired, Average Cost Per Share				$ 9.31	$ 9.64
Payments for Repurchase of Common Stock				$ 8,048,000	$ 4,342,000
Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Payments for Repurchase of Common Stock			$ 1,200,000	$ 7,900,000	$ 4,300,000
Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Stock Repurchased During Period, Shares						1,735,983
Stock Repurchased During Period, Value						$ (17,000,000)
Treasury Stock Acquired, Average Cost Per Share						$ 9.75
Subsequent Event | Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Payments for Repurchase of Common Stock		$ 700,000

Business Segments - Schedule of

Business Segments - Schedule of Business Segment Financial Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)segment	Mar. 31, 2017USD ($)
Segment Reporting Information [Line Items]
Number of business segments | segment	2
Revenue from third parties	$ 274,539	$ 264,405
Revenue from other segments	0	0
Total revenue	274,539	264,405
Adjusted EBITDA	7,350	12,508
North America
Segment Reporting Information [Line Items]
Revenue from third parties		182,498
Revenue from other segments	1,420	1,755
Total revenue	190,697	184,253
Adjusted EBITDA	17,216	18,681
Latin America
Segment Reporting Information [Line Items]
Revenue from third parties		81,907
Revenue from other segments	2,776	3,359
Total revenue	88,038	85,266
Adjusted EBITDA	2,092	2,871
Other [Member]
Segment Reporting Information [Line Items]
Revenue from third parties	0	0
Revenue from other segments	(4,196)	(5,114)
Total revenue	(4,196)	(5,114)
Adjusted EBITDA	$ (11,958)	$ (9,044)

Business Segments - Schedule 49

Business Segments - Schedule of Business Segments Adjusted EBITDA (Details) - USD ($) $ in Thousands	Dec. 14, 2015	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting [Abstract]
Adjusted EBITDA		$ 7,350	$ 12,508
Depreciation and amortization		(3,659)	(2,904)
Stock-based compensation expense		(1,417)	(1,419)
Change in fair value of contingent consideration		0	1,040
Restructuring and other charges	$ (6,700)	0
Professional Fees		(1,033)	0
Income from operations		1,241	9,225
Interest income		62	34
Interest expense		(1,568)	(1,003)
Other, net		(846)	(224)
Income before income taxes		$ (1,111)	$ 8,032