Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 13, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 000-52170 | ||
Entity Registrant Name | INNERWORKINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-5997364 | ||
Entity Address, Address Line One | 203 North LaSalle Street | ||
Entity Address, Address Line Two | Suite 1800 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60601 | ||
City Area Code | (312) | ||
Local Phone Number | 642-3700 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | INWK | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 142,440,160 | ||
Entity Common Stock, Shares Outstanding | 52,142,896 | ||
Entity Central Index Key | 0001350381 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Documents Incorporated by Reference | The registrant intends to file with the Securities and Exchange Commission a proxy statement pursuant to Regulation 14A or an amendment to this report filed under cover of Form 10-K/A containing the information required to be disclosed under Part III of Form 10-K within 120 days of the end of its fiscal year ended December 31, 2019 . Portions of such proxy statement or Form 10-K/A are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Financial Position [Abstract] | |||||||||||||||
Revenue | $ 319,074 | $ 287,688 | $ 283,861 | $ 267,211 | $ 293,977 | $ 270,844 | $ 281,988 | $ 274,297 | $ 551,072 | $ 556,285 | $ 838,760 | $ 827,129 | $ 1,157,834 | $ 1,121,106 | $ 1,138,370 |
Cost of goods sold | 218,193 | 215,463 | 205,201 | 234,911 | 206,877 | 217,047 | 208,458 | 420,664 | 425,505 | 638,857 | 632,382 | 895,825 | 867,293 | 862,862 | |
Gross profit | 62,106 | 69,495 | 68,398 | 62,010 | 59,066 | 63,967 | 64,941 | 65,839 | 130,408 | 130,780 | 199,903 | 194,747 | 262,009 | 253,813 | 275,508 |
Operating expenses: | |||||||||||||||
Selling, general and administrative expenses | 59,751 | 57,404 | 55,830 | 62,124 | 56,167 | 59,050 | 61,196 | 113,235 | 120,246 | 172,986 | 176,413 | 222,721 | 238,537 | 227,895 | |
Depreciation and amortization | 12,328 | 12,988 | 13,390 | ||||||||||||
Change in fair value of contingent consideration | 0 | 0 | 677 | ||||||||||||
Goodwill impairment | 18,400 | 27,900 | 0 | 46,319 | 0 | ||||||||||
Intangible and other asset impairments | 13,800 | 0 | 18,121 | 0 | |||||||||||
Restructuring charges | 2,892 | 10,524 | 15,918 | 6,031 | 0 | ||||||||||
Income (loss) from operations | 3,588 | 3,762 | 4,063 | (371) | (28,232) | (43,312) | 2,377 | 984 | 3,692 | 3,361 | 7,454 | (39,951) | 11,042 | (68,183) | 33,546 |
Other income (expense): | |||||||||||||||
Interest income | 366 | 218 | 97 | ||||||||||||
Interest expense | (14,097) | (7,749) | (4,729) | ||||||||||||
Other, net | (1,735) | 279 | (440) | (161) | (1,896) | (3,686) | (1,616) | (1,788) | |||||||
Total other expense | (6,074) | (2,103) | (3,087) | (5,191) | (11,265) | (17,417) | (9,147) | (6,420) | |||||||
(Loss) income before income taxes | (2,312) | 1,960 | (3,458) | (30,926) | (45,363) | 326 | (1,368) | (1,499) | (1,042) | (3,811) | (46,404) | (6,375) | (77,330) | 27,126 | |
Provision (benefit) for income tax | (1,250) | 2,468 | (1,414) | (1,536) | (243) | 625 | 506 | 1,053 | 1,131 | (197) | 889 | 3,700 | (647) | 11,257 | |
Net (loss) income | $ (6,461) | $ (1,062) | $ (508) | $ (2,044) | $ (29,390) | $ (45,120) | $ (299) | $ (1,874) | $ (2,552) | $ (2,173) | $ (3,614) | $ (47,293) | $ (10,075) | $ (76,683) | $ 15,869 |
Basic (loss) earnings per share (in USD per share) | $ (0.02) | $ (0.01) | $ (0.04) | $ (0.57) | $ (0.87) | $ (0.01) | $ (0.03) | $ (0.05) | $ (0.04) | $ (0.07) | $ (0.90) | $ (0.19) | $ (1.47) | $ 0.29 | |
Diluted (loss) earnings per share (in USD per share) | $ (0.02) | $ (0.01) | $ (0.04) | $ (0.57) | $ (0.87) | $ (0.01) | $ (0.03) | $ (0.05) | $ (0.04) | $ (0.07) | $ (0.90) | $ (0.19) | $ (1.47) | $ 0.29 | |
Weighted average shares outstanding - basic (in shares) | 53,293 | 52,230 | 53,851 | ||||||||||||
Weighted average shares outstanding - diluted (in shares) | 53,293 | 52,230 | 54,944 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net (loss) income | $ (10,075) | $ (76,683) | $ 15,869 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | 1,859 | (5,236) | 1,732 |
Other comprehensive income (loss), before tax | 1,859 | (5,236) | 1,732 |
Provision (benefit) for income tax related to components of other comprehensive (loss) income | (3) | (154) | 12 |
Other comprehensive income (loss), net of tax | 1,862 | (5,082) | 1,720 |
Comprehensive (loss) income | $ (8,213) | $ (81,765) | $ 17,589 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 42,711 | $ 26,770 |
Accounts receivable, net of allowance for doubtful accounts of $3,830 and $4,880, respectively | 202,406 | 193,186 |
Unbilled revenue | 48,396 | 46,252 |
Other receivables | 28,194 | 23,727 |
Inventories | 34,977 | 55,715 |
Prepaid expenses | 10,680 | 16,256 |
Other current assets | 7,301 | 10,733 |
Total current assets | 374,665 | 372,639 |
Property and equipment, net | 37,224 | 82,933 |
Intangibles and other assets: | ||
Goodwill | 152,210 | 152,158 |
Intangible assets, net | 7,714 | 9,828 |
Right of use assets, net | 51,159 | |
Deferred income taxes | 2,182 | 1,195 |
Other non-current assets | 4,129 | 2,976 |
Total intangibles and other assets | 217,394 | 166,157 |
Total assets | 629,283 | 621,729 |
Current liabilities: | ||
Accounts payable | 142,136 | 158,028 |
Accrued expenses | 50,975 | 35,698 |
Deferred revenue | 9,568 | 17,614 |
Other current liabilities | 35,665 | 28,190 |
Total current liabilities | 246,437 | 382,266 |
Lease liabilities | 46,075 | |
Deferred income taxes | 8,053 | 7,605 |
Other long-term liabilities | 1,138 | 50,903 |
Total liabilities | 451,031 | 440,774 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, par value $0.0001 per share, 200,000 and 200,000 shares authorized, 64,820 and 64,495 shares issued, 52,133 and 51,807 shares outstanding, respectively | 6 | 6 |
Additional paid-in capital | 245,311 | 239,960 |
Treasury stock at cost, 12,688 and 12,688 shares, respectively | (81,471) | (81,471) |
Accumulated other comprehensive loss | (22,449) | (24,311) |
Retained earnings | 36,855 | 46,771 |
Total stockholders' equity | 178,252 | 180,955 |
Total liabilities and stockholders' equity | 629,283 | 621,729 |
Revolving Credit Facility | ABL Credit Agreement | ||
Current liabilities: | ||
Line of credit - current | 593 | 142,736 |
Line of credit - non-current | 60,086 | 0 |
Term Loan Facility | ||
Current liabilities: | ||
Line of credit - current | 7,500 | |
Line of credit - non-current | 89,242 | |
Term Loan Facility | Term Loan Credit Agreement | ||
Current liabilities: | ||
Line of credit - current | 7,500 | 0 |
Line of credit - non-current | $ 89,242 | $ 0 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheets Parenthetical [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 3,830 | $ 4,880 |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 64,820,000 | 64,495,000 |
Common stock, shares outstanding (in shares) | 52,133,000 | 51,807,000 |
Treasury stock at cost, shares (in shares) | 12,688,000 | 12,688,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in-Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2016 | 63,391,000 | 9,303,000 | ||||
Beginning balance at Dec. 31, 2016 | $ 262,161 | $ 6 | $ 224,480 | $ (49,458) | $ (20,949) | $ 108,082 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 15,869 | 15,869 | ||||
Total other comprehensive income, net of tax | 1,720 | 1,720 | ||||
Issuance of common stock upon exercise of stock awards (in shares) | 648,000 | |||||
Issuance of common stock upon exercise of stock awards | 1,421 | 1,421 | ||||
Issuance of treasury shares as consideration for acquisition (in shares) | 36,000 | 405,000 | ||||
Issuance of treasury shares as consideration for acquisition | 4,677 | 385 | $ 4,561 | (269) | ||
Acquisition of treasury shares (in shares) | 1,122,000 | |||||
Acquisition of treasury shares | (10,976) | $ (10,976) | ||||
Stock based compensation expense | 6,820 | 6,820 | ||||
Cumulative effect of pre-2017 revision adjustments | (1,060) | (1,060) | ||||
Ending balance (in shares) at Dec. 31, 2017 | 64,075,000 | 10,020,000 | ||||
Ending balance at Dec. 31, 2017 | 282,923 | $ 6 | 235,199 | $ (55,873) | (19,229) | 122,820 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (1,874) | |||||
Ending balance at Mar. 31, 2018 | 277,842 | |||||
Beginning balance (in shares) at Dec. 31, 2017 | 64,075,000 | 10,020,000 | ||||
Beginning balance at Dec. 31, 2017 | 282,923 | $ 6 | 235,199 | $ (55,873) | (19,229) | 122,820 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (2,173) | |||||
Ending balance at Jun. 30, 2018 | 255,977 | |||||
Beginning balance (in shares) at Dec. 31, 2017 | 64,075,000 | 10,020,000 | ||||
Beginning balance at Dec. 31, 2017 | 282,923 | $ 6 | 235,199 | $ (55,873) | (19,229) | 122,820 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (47,293) | |||||
Ending balance at Sep. 30, 2018 | 209,900 | |||||
Beginning balance (in shares) at Dec. 31, 2017 | 64,075,000 | 10,020,000 | ||||
Beginning balance at Dec. 31, 2017 | 282,923 | $ 6 | 235,199 | $ (55,873) | (19,229) | 122,820 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (76,683) | (76,683) | ||||
Total other comprehensive income, net of tax | (5,082) | (5,082) | ||||
Issuance of common stock upon exercise of stock awards (in shares) | 420,000 | |||||
Issuance of common stock upon exercise of stock awards | $ (541) | (541) | ||||
Acquisition of treasury shares (in shares) | 2,667,732 | 2,668,000 | ||||
Acquisition of treasury shares | $ (25,598) | $ (25,598) | ||||
Stock based compensation expense | 5,302 | 5,302 | ||||
Ending balance (in shares) at Dec. 31, 2018 | 64,495,000 | 12,688,000 | ||||
Ending balance at Dec. 31, 2018 | 180,955 | $ 6 | 239,960 | $ (81,471) | (24,311) | 46,771 |
Beginning balance at Mar. 31, 2018 | 277,842 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (299) | |||||
Ending balance at Jun. 30, 2018 | 255,977 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (45,120) | |||||
Ending balance at Sep. 30, 2018 | 209,900 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (29,390) | |||||
Ending balance (in shares) at Dec. 31, 2018 | 64,495,000 | 12,688,000 | ||||
Ending balance at Dec. 31, 2018 | 180,955 | $ 6 | 239,960 | $ (81,471) | (24,311) | 46,771 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (2,044) | |||||
Ending balance at Mar. 31, 2019 | 180,577 | |||||
Beginning balance (in shares) at Dec. 31, 2018 | 64,495,000 | 12,688,000 | ||||
Beginning balance at Dec. 31, 2018 | 180,955 | $ 6 | 239,960 | $ (81,471) | (24,311) | 46,771 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (2,552) | |||||
Ending balance at Jun. 30, 2019 | 181,608 | |||||
Beginning balance (in shares) at Dec. 31, 2018 | 64,495,000 | 12,688,000 | ||||
Beginning balance at Dec. 31, 2018 | 180,955 | $ 6 | 239,960 | $ (81,471) | (24,311) | 46,771 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (3,614) | |||||
Ending balance at Sep. 30, 2019 | 180,493 | |||||
Beginning balance (in shares) at Dec. 31, 2018 | 64,495,000 | 12,688,000 | ||||
Beginning balance at Dec. 31, 2018 | 180,955 | $ 6 | 239,960 | $ (81,471) | (24,311) | 46,771 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (10,075) | (10,075) | ||||
Total other comprehensive income, net of tax | $ 1,862 | 1,862 | ||||
Issuance of common stock upon exercise of stock awards (in shares) | 27,000 | 325,000 | ||||
Issuance of common stock upon exercise of stock awards | $ (182) | (182) | ||||
Stock based compensation expense | 5,533 | 5,533 | ||||
Ending balance (in shares) at Dec. 31, 2019 | 64,820,000 | 12,688,000 | ||||
Ending balance at Dec. 31, 2019 | 178,252 | $ 6 | 245,311 | $ (81,471) | (22,449) | 36,855 |
Beginning balance at Mar. 31, 2019 | 180,577 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (508) | |||||
Ending balance at Jun. 30, 2019 | 181,608 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (1,062) | |||||
Ending balance at Sep. 30, 2019 | 180,493 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (6,461) | |||||
Ending balance (in shares) at Dec. 31, 2019 | 64,820,000 | 12,688,000 | ||||
Ending balance at Dec. 31, 2019 | $ 178,252 | $ 6 | $ 245,311 | $ (81,471) | $ (22,449) | $ 36,855 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||||
Net (loss) income | $ (3,614) | $ (10,075) | $ (76,683) | $ 15,869 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Depreciation and amortization | 12,328 | 12,988 | 13,390 | |
Stock-based compensation expense | 6,281 | 5,302 | 6,820 | |
Deferred income taxes | (879) | (4,604) | 4,073 | |
Change in fair value of contingent consideration liability | 0 | 0 | 677 | |
Goodwill impairment | 0 | 46,319 | 0 | |
Intangible and other asset impairments | 0 | 18,121 | 0 | |
Bad debt provision | 1,068 | 3,601 | 454 | |
Contract implementation cost amortization | 300 | 433 | 0 | |
Change in fair value of warrant | 2,233 | 0 | 0 | |
Change in fair value of embedded derivative | (176) | 0 | 0 | |
Unrealized foreign exchange loss | 834 | 0 | 0 | |
Other operating activities, net | 1,150 | 255 | 210 | |
Changes in assets and liabilities: | ||||
Accounts receivable and unbilled revenue | (21,488) | (12,254) | 4,470 | (41,871) |
Inventories | (8,913) | 20,980 | (16,039) | (4,245) |
Prepaid expenses and other assets | (28,985) | (6,529) | 2,120 | (13,882) |
Accounts payable | 12,078 | (15,634) | 21,585 | 18,096 |
Accrued expenses and other liabilities | 23,868 | 22,843 | 5,190 | 12,107 |
Net cash provided by operating activities | (9,655) | 22,470 | 23,058 | 11,698 |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (10,135) | (13,378) | (11,263) | (12,483) |
Payments for acquisitions, net of cash acquired | (721) | 0 | 0 | |
Proceeds from sale of property and equipment | 0 | 122 | 0 | |
Net cash used in investing activities | (10,525) | (14,099) | (11,141) | (12,483) |
Cash flows from financing activities: | ||||
Repayments of net short-term secured borrowings | (833) | (1,525) | ||
Proceeds from net short-term secured borrowings | 20,709 | |||
Repurchases of common stock | 0 | (25,689) | (10,885) | |
Payments of contingent consideration | 0 | 0 | (10,989) | |
Payment of debt issuance costs | (5,488) | (545) | 0 | |
Proceeds from exercise of stock options | 63 | 545 | 2,663 | |
Other financing activities, net | (245) | (1,061) | (1,156) | |
Net cash provided by (used in) financing activities | 8,977 | (13,736) | (525) | |
Effect of exchange rate changes on cash and cash equivalents | (1,407) | (1,973) | 948 | |
Increase (decrease) in cash and cash equivalents | 15,941 | (3,792) | (362) | |
Cash and cash equivalents, beginning of period | $ 26,770 | 26,770 | 30,562 | 30,924 |
Cash and cash equivalents, end of period | 42,711 | 26,770 | 30,562 | |
Supplemental disclosure of cash flow information: | ||||
Interest paid | 14,355 | 7,149 | 4,072 | |
Income taxes paid | 3,040 | 5,810 | 9,838 | |
Supplemental non-cash investing and financing activities: | ||||
Buildings - Build to Suit Leases | 0 | 48,428 | 0 | |
Repurchases of common stock | 0 | 0 | 91 | |
Shares issued as payment of contingent consideration | 0 | 0 | 4,678 | |
Revolving Credit Facility | Credit Agreement | ||||
Cash flows from financing activities: | ||||
Repayments of lines of credit | (142,583) | (867) | ||
Proceeds from lines of credit | 14,539 | |||
Revolving Credit Facility | ABL Credit Agreement | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Change in fair value of embedded derivative | 102 | |||
Cash flows from financing activities: | ||||
Proceeds from lines of credit | 60,563 | 0 | 0 | |
Term Loan Facility | Term Loan Credit Agreement | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Change in fair value of embedded derivative | 74 | |||
Cash flows from financing activities: | ||||
Repayments of lines of credit | (2,500) | 0 | 0 | |
Proceeds from lines of credit | $ 100,000 | $ 0 | $ 0 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business InnerWorkings, Inc. (together with its subsidiaries, “the Company”) was incorporated in the state of Delaware on January 3, 2006. The Company is a leading global marketing execution firm for the world's most marketing intensive companies, including those companies 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Consolidation The consolidated financial statements include the accounts of InnerWorkings, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Preparation of Financial Statements and Use of Estimates The preparation of the consolidated financial statements is in conformity with generally accepted accounting principles in the United States ("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 can differ from those estimates. Revision of Prior Period Financial Statements In connection with the preparation of the consolidated financial statements, the Company identified errors within our North America and EMEA segments in the quarterly and annual periods of 2019, 2018 and 2017. During 2019, the Company enhanced its internal controls in connection with its ongoing remediation efforts related to the material weakness. As a result of the enhanced internal controls, certain adjustments were identified related to prior periods. The remaining adjustments related to a proposed sales and use tax liability from the State of Illinois, which impacted prior years. The Company considered the errors identified in accordance with the SEC's Staff Accounting Bulletin ("SAB") No. 99 ("Materiality") and SAB 108 ("Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements") and determined the impact was immaterial to the previously issued consolidated financial statements, however, correcting the cumulative error in the current period would be significant. As such, the Company has revised the previously reported financial information included herein. Refer to Note 21 , Revision of Prior Period Financial Statements for a summary of revisions made. Further, we will correct previously reported financial information impacted by the aforementioned errors in future filings. 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 income (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. The net realized gains (losses) on foreign currency transactions were $(2.4) million , $(1.1) million and $(1.4) million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Highly Inflationary Accounting During 2018, the Argentinian economy was reclassified as highly inflationary under GAAP due to multiple years of increasing inflation, resulting in the remeasurement of our Argentinian operations into U.S. dollars. The application of highly inflationary accounting did not have a material impact on the Company’s consolidated financial statements for the years ended December 31, 2019 and 2018 . Fair Value Measurements 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 fair value of revolving credit facilities and long-term debt facilities are determined using current market yields. Fair value accounting requires bifurcation of embedded derivative instruments such as interest rate reset features in debt instruments, and measurement of their fair value for accounting purposes. In determining the appropriate fair value for embedded derivatives, the Company uses a 'with and without' valuation model. Additionally, fair value accounting requires liability-classified awards, such as warrant liabilities, to be measured at fair value for accounting purposes. The fair value of freestanding derivative instruments, such as warrant liabilities, are valued using the Black-Scholes-Merton option pricing model. Once determined, derivative liabilities and warrant liabilities are adjusted to reflect fair value at each reporting period end, with any increase or decrease in the fair value being recorded within other expense as an adjustment to fair value of derivatives. Deferred Financing Fees and Debt Discounts Deferred financing fees represent third-party debt issuance costs associated with the related debt facility. Deferred financing fees and related derivative and warrant features associated with the Company’s long-term debt agreement are treated as a discount on the long-term debt and amortized using the effective interest rate method. Derivative features associated with the Company’s revolving credit agreement are treated as a discount on the revolving credit facility and amortized using the straight-line method. Deferred financing fees related to the Company's revolving credit facility are capitalized and reflected as deferred financing costs within other non-current assets and are amortized over the term of the revolving credit facility. Debt discounts on the Company’s revolving credit facility and long-term debt are reflected as a direct deduction from the carrying amount of the long-term portion of the related debt liability. Revenue Recognition In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers , the Company generally reports revenue on a gross basis because the Company typically controls the goods or services before transferring to the customer. Under these arrangements, the Company is primarily responsible for the fulfillment, including the acceptability, of the marketing materials and other products or services. In addition, the Company has reasonable discretion in establishing the price, and in some transactions, the Company also has inventory risk and is involved in the determination of the nature or characteristics of the marketing materials and products. In some arrangements, the Company is not primarily responsible for fulfilling the goods or services. In arrangements of this nature, the Company does not control the goods or services before they are transferred to the customer and such revenue is reported on a net basis. The Company records taxes collected from customers and remitted to governmental authorities on a net basis. The Company primarily generates revenue 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. The Company includes any fixed charges per its 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. Revenue is measured based on consideration specified in a contract with a customer. Contracts may include variable consideration (for example, customer incentives such as rebates), and to the extent that variable consideration is not constrained, the Company includes the expected amount within the total transaction price and updates its 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 its products to customers, at which time the Company recognizes revenue. Payment is typically due from the customer at this time or shortly thereafter. 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 consolidated statements of operations. 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, including stand-alone creative and other services, may be recognized over time but the difference between recognizing that revenue over time versus at a point in time when the service is completed and accepted by the customer is not material to the Company’s overall revenue to date. Cost of Goods Sold Cost of goods sold includes product costs and warehousing costs. Product costs consist of costs to procure inventory for customers, creative design costs to customize products for customers, and shipping and handling costs. Shipping and handling include both internal and third-party fulfillment and shipping costs. Warehousing costs consist of rent and overhead costs related to assembling and storing products in warehouse facilities. Certain creative design costs and warehousing costs consist of personnel costs for employees within production and distribution of branded products. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Accounts Receivable Accounts receivable are uncollateralized customer obligations due under normal trade terms. Payment terms with customers are generally 30 to 90 days from the invoice date. Accounts receivable are stated at the amount billed to the customer, less an estimate for potential bad debts. Interest is not generally accrued on outstanding balances. The carrying amount of accounts receivable is reduced by an allowance that reflects management’s best estimate of the amounts that will not be collected. The Company estimates the collectability of its accounts receivable based on a combination of factors including, but not limited to, customer credit ratings and historical experience. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company (e.g., bankruptcy filings or substantial downgrading of credit ratings), the Company provides allowances for bad debts against amounts due to reduce the net recognized receivable to the amount it reasonably believes will be collected. Aged receivables are reviewed on a regular basis and uncollectible accounts are written off when all reasonable collection efforts have been exhausted. Activity related to our allowance for doubtful accounts for the years ended December 31, is as follows (in thousands): 2019 2018 2017 Balance at beginning of period $ 4,880 $ 3,534 $ 2,622 Charged to expense 1,068 3,601 454 Uncollectible accounts written off, net of recoveries (2,118 ) (2,255 ) 457 Balance at end of period $ 3,830 $ 4,880 $ 3,534 Unbilled Revenue and Accrued Accounts Payable Unbilled revenue and accrued accounts payable include estimated shipments or deliveries that have been made to customers for which the related accounts receivable and accounts payable have not yet been recorded. The Company estimates these amounts using assumptions such as projected margin and shipping probabilities and results in impacts to revenue, unbilled revenue, accrued accounts payable, and costs of goods sold. Other Receivables Other receivables include product receivables for consumer packaged goods clients, where the Company's procurement of products on behalf of the customer is considered to be a pass-through activity. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. Net realizable value is based upon an estimated average selling price reduced by estimated costs of disposal. Inventories primarily consist of purchased finished goods. Finished goods inventory includes consigned inventory held on behalf of customers as well as inventory held at third-party fulfillment centers and subcontractors. The inventory reserve balance was $1.8 million , $5.0 million and $4.3 million as of December 31, 2019 , 2018 and 2017 , respectively. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives, by asset class, are as follows: Computer equipment 3 years Software, including internal-use software 1 to 5 years Office equipment 5 years Furniture and fixtures 7 years Leasehold improvements are depreciated using the straight-line method over the shorter of their estimated useful lives or the terms of the related leases. The Company reviews long-lived assets, including amortizable intangible assets, for realizability on an ongoing basis. Changes in depreciation, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change. The Company also reviews for impairment when conditions exist that indicate the carrying amount of the asset group may not be fully recoverable. In those circumstances, the Company performs undiscounted operating cash flow analyses to determine if an impairment exists. When testing for asset impairment, the Company groups assets and liabilities at the lowest level for which cash flows are separately identifiable. Any impairment loss is calculated as the excess of the asset’s carrying value over its estimated fair value. Fair value is estimated based on the discounted cash flows for the asset group over the remaining useful life or based on the expected cash proceeds for the asset less costs of disposal. Internal-Use Software In accordance with ASC 350-40, Intangibles—Goodwill and Other, Internal-Use Software, certain costs incurred in the planning and evaluation stage of internal-use computer software are expensed as incurred. Certain costs incurred during the application development stage are capitalized and included in property and equipment. Capitalized internal-use software costs are depreciated over the expected economic useful life of three to six years using the straight-line method. Capitalized internal-use software asset depreciation expense for the years ended December 31, 2019 , 2018 and 2017 was $6.6 million , $6.1 million and $5.4 million , respectively, and is included in total depreciation expense. At December 31, 2019 and 2018 , the net book value of internal-use software was $25.3 million and $25.4 million , respectively. Goodwill 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. Absent any interim indicators of impairment, the Company tests for goodwill impairment as of the first day of its fourth fiscal quarter of each year. Under ASC 350, an entity is permitted to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the quantitative test is required due to the determination the fair value of a reporting unit is more likely than not less than its carrying amount, the fair value for each reporting unit is compared to its book value including goodwill. In the case that the fair value is less than the book value of the goodwill, the difference is recognized as an impairment. The fair value estimates used in the goodwill impairment analysis require significant judgment. The fair value estimates are based on assumptions management believes to be reasonable, but that are inherently uncertain, including estimates of future revenue and operating margins and assumptions about the overall economic climate and the competitive environment for the business. The fair value determination of the North America reporting unit primarily relies on management judgments around timing of generating revenue from recent new customer wins as well as timing of benefits expected to be received from the significant restructuring actions currently underway (see Note 7 , Restructuring Activities and Charges ). If assumptions surrounding either of these factors change, then a future impairment charge may occur. At the date of the most recent step one test, if the fair value of a reporting unit exceeds the carrying value by less than 30 percent , the Company will include enhanced goodwill disclosures. The goodwill impairment charge recorded to the North America reporting unit in 2018, as discussed in Note 5 , Goodwill , to the Consolidated Financial Statements, represents a partial impairment of the North America segment goodwill, resulting in “at risk” goodwill under ASC 350 as of December 31, 2018 . The Company performed its annual goodwill impairment analysis as of October 1, 2019 , its measurement date, and concluded there was no impairment of its North America reporting unit. Further, the Company noted the fair value of the reporting unit exceeded the carrying value by more than 30 percent. The Company considered indicators for impairment at December 31, 2019 and did not identify any that triggered additional impairment testing and analysis. Other Intangible Assets In accordance with ASC 350 , the Company amortizes its intangible assets with finite lives over their respective estimated useful lives and reviews for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that they may be impaired. 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-competition agreements, trade names and patents. The Company’s customer lists, which have an estimated weighted-average useful life of approximately 14 years, are being amortized using the economic life method. The Company’s non-competition agreements, trade names and patents are being amortized on the straight-line basis over their estimated weighted-average useful lives of approximately 4 years, 13 years and 9 years, respectively. Leases The Company leases office space, warehouses, automobiles, and equipment. The Company determines whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and direct the use of identified office space, warehouse or equipment for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all the economic benefits from the use of the office space, warehouse and equipment. The leases are recorded as right-of-use ("ROU") assets and lease liabilities for leases with terms greater than 12 months. The Company’s leases generally have terms of 1 - 10 years , with certain leases including renewal options to extend the leases for additional periods at the Company’s discretion. Generally, the lease term is the minimum of the noncancelable period of the lease, as the Company is not reasonably certain to exercise renewal options. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. Tenant allowances used to fund leasehold improvements are recognized when earned and reduce the right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, the Company estimates incremental secured borrowing rates corresponding to the maturities of the leases. The Company estimates this rate based on prevailing financial market conditions as rates are not implicitly stated in most leases. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leased assets are presented net of accumulated amortization. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or liabilities; instead, these are expensed as incurred and recorded as variable lease expense. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes , under which deferred tax assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying values of assets and liabilities and their respective tax bases. A valuation allowance is established to reduce the carrying value of deferred tax assets if it is considered more likely than not that such assets will not be realized. Any change in the valuation allowance would be charged to income in the period such determination was made. The Company recognizes the tax benefit from an uncertain tax position only if it is “more likely than not” the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. There was nominal interest and penalties related to unrecognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 . Based on the Company’s evaluation, it was concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. Examinations by tax authorities have been completed through 2014 in the Czech Republic, United Kingdom, and United States, and through 2015 in France. On December 22, 2017, the U.S. government enacted comprehensive Federal tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “Act”). The Act makes changes to the corporate tax rate, business-related deductions and taxation of foreign earnings, among others, that will generally be effective for taxable years beginning after December 31, 2017. The Act requires a U.S. shareholder of a foreign corporation to include global intangible low-taxed (“GILTI”) in taxable income. The accounting policy of the Company is to record any tax on GILTI in the provision for income taxes in the year it is incurred. Advertising Costs of advertising, which are expensed as incurred by the Company, were $0.6 million , $1.4 million and $1.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, and are included in selling, general and administrative expenses in the consolidated statement of operations. Comprehensive (Loss) Income Accumulated comprehensive loss consists solely of foreign currency translation adjustments. Stock-Based Compensation The Company accounts for stock-based compensation awards 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 and stock appreciation rights ("SARs") and the closing share price on the grant date for restricted shares and restricted share units. 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. As the SARs are liability classified, the fair value is remeasured at the end of each month and the expense is adjusted accordingly. 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 and is subject to adjustment based on management's assessment of the Company's performance relative to the target number of shares performance criteria. The option valuation model used in determining the fair value of the stock options and SARs requires assumptions, which impact the assumed fair value, including the expected life of the stock option, the risk-free interest rate, expected volatility of the stock over the expected life and the expected dividend yield. The Company uses historical data to determine these assumptions and if these assumptions change significantly for future grants, share-based compensation expense will fluctuate in future years. The Company accounts for forfeitures as they occur. Stock-based compensation expense is included in selling, general and administrative expenses in the consolidated statement of operations. Refer to Note 16 , Stock-Based Compensation Plan , for further information regarding stock-based compensation. Recent Accounting Pronouncements Recently Adopted Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use asset on the balance sheet. The Company adopted ASU 2016-02, along with related clarifications and improvements, as of January 1, 2019, using the modified retrospective approach, which allows the Company to apply ASC 840, Leases , in the comparative periods presented in the year of adoption. The cumulative effect of adoption was recorded as an adjustment to the opening balance of retained earnings in the period of adoption. The Company elected to use the package of practical expedients, which permitted the Company to not reassess: (i) whether a contract is or contains a lease, (ii) lease classification, and (iii) initial direct costs resulting from the lease. The Company has not elected the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of operating lease assets. The Company elected to apply the short-term lease exception, which allows the Company to keep leases with terms of 12 months or less off the balance sheet. The Company also elected to combine lease and non-lease components as a single component for the Company's entire population of lease assets. Refer to Note 3 , Leases , for further discussion of the new guidance impact. In the first quarter of 2019, the FASB issued ASU 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. An election was not made to reclassify the income tax effects of the Tax Cuts and Jobs Act (“Tax Reform Act”) from accumulated other comprehensive income to retained earnings. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires entities to measure the impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. ASU 2016-13 requires using a modified retrospective transition method. The guidance introduces a new credit reserving methodology known as the Current Expected Credit Loss ("CECL") methodology, which will alter the estimation process, inputs, and assumptions used in estimating credit losses. For the financial assets that are under the scope of this standard, entities will be required to use a new forward-looking “expected loss” model that estimates the loss over the lifetime of the asset based on historical experience, current conditions, and reasonable and supportable forecasts. This will result in earlier recognition of allowance for doubtful accounts and will replace the Company’s “incurred loss” model that delayed the full amount of credit loss until the loss is probable of occurring. In addition, the standard requires entities to evaluate financial instruments by recording allowance for doubtful accounts by pooling of instruments based on similar risk characteristics, rather than a specific identification approach. The effective date is for fiscal years beginning after D |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use asset on the balance sheet. The Company adopted the ASU, along with related clarifications and improvements, as of January 1, 2019, using the modified retrospective approach. The cumulative effect of adoption was recorded as an adjustment to the opening balance of retained earnings in the period of adoption. Adoption of the new standard resulted in the recording of net lease assets and lease liabilities of approximately $39.4 million and $41.5 million , respectively, as of January 1, 2019. The $2.1 million difference in the lease liabilities and net lease assets represents the net ASC 840 lease liabilities at the effective date that were netted against the initial right-of-use-asset, which included: straight-line rent, prepaid rent, and lease incentives. The $0.2 million transition adjustment to retained earnings was comprised of $1.0 million of build-to-suit assets and build-to-suit financing obligations that were derecognized and recorded as operating leases in transition and $0.5 million of initial impairment to right-of-use-assets, which were partially offset by the related deferred tax effect of $0.3 million . Adoption of ASU 2016-02 did not materially impact the Company's consolidated net earnings or cash flows and did not have a notable impact on the Company's liquidity or debt-covenant compliance under the Company's current agreements. Supplemental balance sheet information related to leases was as follows (in thousands): December 31, 2019 Operating leases: Right of use assets $ 50,668 Finance leases: Right of use assets, cost 815 Less: Accumulated amortization (324 ) Right of use assets, net 491 Total right of use assets, net $ 51,159 Lease liabilities: Current: Operating $ 9,107 Finance 176 Non-current: Operating 45,728 Finance 347 Total lease liabilities $ 55,358 The components of lease cost were as follows (in thousands): December 31, 2019 Operating lease cost $ 10,725 Variable lease cost 1,645 Short-term lease cost 1,871 Finance lease cost: Amortization of right of use assets 91 Interest on lease liabilities 25 Total finance lease cost 116 Less: Sublease income (268 ) Total lease cost $ 14,089 Average lease terms and discount rates were as follows: December 31, 2019 Weighted-average remaining lease term (years) Operating leases 6.79 Finance leases 2.98 Weighted-average discount rate Operating leases 6.61 % Finance leases 7.27 % Supplemental cash flow information related to leases was as follows (in thousands): December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,649 Operating cash flows from finance leases 129 Total $ 8,778 The aggregate future lease payments for operating and finance leases as of December 31, 2019 are as follows (in thousands): Operating Finance 2020 $ 11,477 $ 204 2021 12,222 204 2022 10,551 133 2023 7,975 29 2024 6,531 9 Thereafter 20,961 — Total lease payments 69,717 579 Less: Interest (14,882 ) (56 ) Present value of lease liabilities $ 54,835 $ 523 The aggregate future lease payments for operating and capital leases as of December 31, 2018 were as follows (in thousands): Operating 2019 $ 6,383 2020 5,017 2021 4,422 2022 3,245 2023 2,068 Thereafter 1,966 Total lease payments $ 23,101 |
Leases | Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use asset on the balance sheet. The Company adopted the ASU, along with related clarifications and improvements, as of January 1, 2019, using the modified retrospective approach. The cumulative effect of adoption was recorded as an adjustment to the opening balance of retained earnings in the period of adoption. Adoption of the new standard resulted in the recording of net lease assets and lease liabilities of approximately $39.4 million and $41.5 million , respectively, as of January 1, 2019. The $2.1 million difference in the lease liabilities and net lease assets represents the net ASC 840 lease liabilities at the effective date that were netted against the initial right-of-use-asset, which included: straight-line rent, prepaid rent, and lease incentives. The $0.2 million transition adjustment to retained earnings was comprised of $1.0 million of build-to-suit assets and build-to-suit financing obligations that were derecognized and recorded as operating leases in transition and $0.5 million of initial impairment to right-of-use-assets, which were partially offset by the related deferred tax effect of $0.3 million . Adoption of ASU 2016-02 did not materially impact the Company's consolidated net earnings or cash flows and did not have a notable impact on the Company's liquidity or debt-covenant compliance under the Company's current agreements. Supplemental balance sheet information related to leases was as follows (in thousands): December 31, 2019 Operating leases: Right of use assets $ 50,668 Finance leases: Right of use assets, cost 815 Less: Accumulated amortization (324 ) Right of use assets, net 491 Total right of use assets, net $ 51,159 Lease liabilities: Current: Operating $ 9,107 Finance 176 Non-current: Operating 45,728 Finance 347 Total lease liabilities $ 55,358 The components of lease cost were as follows (in thousands): December 31, 2019 Operating lease cost $ 10,725 Variable lease cost 1,645 Short-term lease cost 1,871 Finance lease cost: Amortization of right of use assets 91 Interest on lease liabilities 25 Total finance lease cost 116 Less: Sublease income (268 ) Total lease cost $ 14,089 Average lease terms and discount rates were as follows: December 31, 2019 Weighted-average remaining lease term (years) Operating leases 6.79 Finance leases 2.98 Weighted-average discount rate Operating leases 6.61 % Finance leases 7.27 % Supplemental cash flow information related to leases was as follows (in thousands): December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,649 Operating cash flows from finance leases 129 Total $ 8,778 The aggregate future lease payments for operating and finance leases as of December 31, 2019 are as follows (in thousands): Operating Finance 2020 $ 11,477 $ 204 2021 12,222 204 2022 10,551 133 2023 7,975 29 2024 6,531 9 Thereafter 20,961 — Total lease payments 69,717 579 Less: Interest (14,882 ) (56 ) Present value of lease liabilities $ 54,835 $ 523 The aggregate future lease payments for operating and capital leases as of December 31, 2018 were as follows (in thousands): Operating 2019 $ 6,383 2020 5,017 2021 4,422 2022 3,245 2023 2,068 Thereafter 1,966 Total lease payments $ 23,101 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Costs to Fulfill Customer Contracts and Contract Liabilities The Company capitalizes certain setup costs related to new customers as fulfillment costs. Capitalized contract costs are amortized over the expected period of benefit using the straight-line method which is generally three years. Contract liabilities are referred to as deferred revenue in the consolidated financial statements. We record deferred revenue when cash payments are received in advance of satisfying our performance obligations, and we recognize revenue as these obligations are satisfied. For the years ended December 31, 2019 and 2018 , the amount of amortization was $0.3 million and $0.4 million , respectively. There was no impairment loss in relation to the capitalized costs for the year ended December 31, 2019 . For the year ended December 31, 2018 , there was a $1.3 million impairment loss in relation to setup costs capitalized in the North America reportable segment. The impairment was calculated as the difference between the carrying amount of the asset and the recoverable amount. The following table is a summary of the Company's costs to fulfill and contract liabilities (in thousands): December 31, 2019 December 31, 2018 Costs to fulfill $ 1,238 $ 1,152 Contract liabilities 9,568 17,614 Cash received 36,662 11,387 Revenue recognized 44,708 11,850 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. These costs would primarily relate to commissions paid to our account executives and are included in selling, general and administrative expenses. No incremental costs to obtain a contract incurred by the Company during the year ended December 31, 2019 and 2018 were required to be capitalized. 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 December 31, 2019 . 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 within Note 2 , Summary of Significant Accounting Policies . |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following is a summary of the goodwill balance for each reportable segment as of December 31 (in thousands): North America EMEA LATAM Total Balance as of December 31, 2017 $ 170,685 $ 21,815 $ 7,447 $ 199,946 Goodwill impairment (18,432 ) (20,778 ) (7,109 ) (46,319 ) Foreign exchange impact (95 ) (1,037 ) (338 ) (1,469 ) Balance as of December 31, 2018 152,158 — — 152,158 Foreign exchange impact 52 — — 52 Balance as of December 31, 2019 $ 152,210 $ — $ — $ 152,210 2018 Goodwill Impairment Charges During the third quarter of 2018, the Company changed its segments and re-evaluated its reporting units. This change required an interim impairment assessment of goodwill. The Company determined an enterprise value for its North America, EMEA and LATAM reporting units that considered both discounted cash flow and guideline public company methods. The Company further compared the enterprise value of each reporting unit to its respective carrying value. The enterprise value for North America exceeded its carrying value indicating there was no impairment. The enterprise values for the EMEA and LATAM reporting units were less than their respective carrying values thus resulting in the Company recognizing $20.8 million and $7.1 million non-cash goodwill impairment charges, respectively. As of December 31, 2018, the Company performed an interim impairment assessment due to a triggering event caused by a sustained decrease in the Company's stock price. The Company determined an enterprise value for its North America reporting unit that considered both the discounted cash flow and guideline public company methods. The Company further compared the enterprise value of the reporting unit to its carrying value. The enterprise value for the North America reporting unit was less than its carrying value and resulted in a non-cash goodwill impairment charge of $18.4 million . No tax benefit was recognized on such charge, and this charge had no impact on the Company's cash flows or compliance with debt covenants. Prior to the aforementioned 2018 activity, the Company recorded gross and accumulated impairment losses of $75.4 million as a result of prior period goodwill impairment tests. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Other Intangible Assets The following is a summary of the Company’s intangible assets as of December 31 (in thousands, except weighted average life): 2019 2018 Weighted Average Life in Years Customer lists $ 73,678 $ 73,792 13.6 Non-competition agreements 959 950 4.1 Trade names 2,510 2,510 13.3 Patents 57 57 9.0 77,204 77,309 Less accumulated amortization and impairment: Customer lists (66,382 ) (64,528 ) Non-competition agreements (959 ) (950 ) Trade names (2,098 ) (1,956 ) Patents (51 ) (47 ) Total accumulated amortization and impairment (69,490 ) (67,481 ) Intangible assets, net $ 7,714 $ 9,828 Amortization expense related to these intangible assets was $2.2 million , $3.6 million , and $5.0 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. As of December 31, 2019 , estimated amortization expense for the next five years and thereafter is as follows (in thousands): 2020 $ 2,024 2021 1,784 2022 1,408 2023 962 2024 745 Thereafter 791 $ 7,714 In the third quarter of 2018 , the Company changed its reporting units as part of a segment change, which required an interim impairment assessment. The Company's intangible and long-lived assets associated with the reporting units assessed were also reviewed for impairment. It was determined that the fair value of intangible assets in EMEA and LATAM was less than the recorded book value of certain customer lists. As a result, the Company recognized a $13.8 million non-cash intangible asset impairment charge related to certain customer lists, which is included in the accumulated amortization and impairment balance above. Of the total charge, $0.6 million related to the LATAM reportable segment, and $13.2 million |
Restructuring Activities and Ch
Restructuring Activities and Charges | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities and Charges | Restructuring Activities and Charges 2018 Restructuring Plan On August 10, 2018 , the Company approved a plan to reduce the Company's cost structure while driving value for its clients and stockholders. The plan was adopted as a result of the Company's determination that its selling, general and administrative costs were disproportionately high in relation to its revenue and gross profit. At the time of adoption, the plan was expected to be completed by the end of 2019 and the Company expected to incur pre-tax cash restructuring charges of $20.0 million to $25.0 million and pre-tax non-cash restructuring charges of $0.4 million . Where required by law, the Company will consult with each of the affected country’s local Works Councils prior to implementing the plan. On February 21, 2019, the Board of Directors approved a two-year extension to the restructuring plan through the end of 2021. On February 24, 2020, subsequent to the balance sheet date but prior to the issuance of the financial statements, the Company approved an increase in the size of the 2018 Restructuring Plan. From adoption through completion of the plan, the Company expects to incur pre-tax cash restructuring charges of $35.0 million to $45.0 million and pre-tax non-cash restructuring charges of $0.5 million . Cash charges are expected to include $9.0 million to $12.0 million for employee severance and related benefits, $8.0 million to $10.0 million for consulting fees and lease and contract terminations, and $18.0 million to $23.0 million for compensation realignment and other retention. The following table summarizes the accrued restructuring activities for this plan (in thousands): Employee Severance and Related Benefits Lease and Contract Termination Costs Compensation Realignment and Other Retention Other Total Balance at December 31, 2017 $ — $ — $ — $ — $ — Charges 3,257 512 — 2,262 6,031 Cash payments (2,594 ) (226 ) — (1,557 ) (4,377 ) Non-cash settlements/adjustments (1) (305 ) — — — (305 ) Balance at December 31, 2018 358 286 — 705 1,349 Charges 5,073 920 5,208 4,717 15,918 Prepayments (2) — — 199 — 199 Cash payments (4,763 ) (1,016 ) (1,771 ) (5,164 ) (12,714 ) Non-cash settlements/adjustments (1) (2 ) (167 ) — — (169 ) Balance at December 31, 2019 $ 666 $ 23 $ 3,636 $ 258 $ 4,583 (1) Non-cash settlements and adjustments consist of (1) ASC 842 transition adjustments for a historical lease termination liability under ASC 840 and (2) foreign currency impacts. (2) For compensation realignment and other retention amounts, expense is recognized over a mandatory future service period, whereby payments occur at certain intervals throughout the mandatory future service period. Prepayments reflected in this line item represent payments that have occurred as of December 31, 2019 . The Company recorded the following restructuring costs by segment (in thousands): Year Ended December 31, 2019 2018 North America $ 8,466 $ 882 LATAM 515 368 EMEA 1,735 2,496 Other 5,202 2,285 Total $ 15,918 $ 6,031 From adoption through December 31, 2019 , the Company recognized $21.9 million in total restructuring charges pursuant to the 2018 Restructuring Plan. 2015 Restructuring Plan 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 total 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 early 2020. The following table summarizes the accrued restructuring activities for this plan for the year ended December 31, 2019 (in thousands), all of which relate to EMEA: Employee Severance and Related Benefits Lease and Contract Termination Costs Other Total Balance as of December 31, 2018 $ 486 $ — $ — $ 486 Cash payments (364 ) — — (364 ) Balance as of December 31, 2019 $ 122 $ — $ — $ 122 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment at December 31, 2019 and 2018 , respectively, consisted of the following (in thousands): 2019 2018 Computer equipment $ 14,249 $ 12,258 Software, including internal-use software 89,072 82,426 Office equipment and furniture 7,288 7,315 Buildings 1,666 49,169 Leasehold improvements 6,776 4,394 Total Property and Equipment, Gross 119,051 155,562 Less: Accumulated depreciation (81,827 ) (72,629 ) Property and Equipment, Net $ 37,224 $ 82,933 Depreciation expense was $10.1 million , $9.4 million , and $8.4 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Long-Lived Asset Impairment In the third quarter of 2018, the Company changed its reporting units as part of a segment change, which required an interim impairment assessment. The intangible and long-lived assets associated with the reporting units assessed were also reviewed for impairment. As the fair value of capitalized costs related to a legacy ERP system in the EMEA reporting unit was determined to be less than the recorded book value of such assets, the Company recorded a $3.0 million impairment charge. During the fourth quarter of 2017, the Company ceased use of one of its internal-use software platforms and recorded $0.4 million of expense within depreciation and amortization. Buildings Under ASC 840, Leases , the Company was deemed the accounting owner of facilities in Portland, Oregon, and Prague, Czech Republic, during construction, and upon completion of construction, determined that facilities did not qualify for sale-leaseback accounting treatment. Buildings of $48.5 million and corresponding financing obligations of $47.0 million were classified within Property and equipment, net and Long-term liabilities, respectively, as of December 31, 2018. These amounts were derecognized upon adoption of ASC 842, Leases , and are recorded as operating leases within right of use assets and lease liabilities as of December 31, 2019. |
Revolving Credit Facilities
Revolving Credit Facilities | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facilities | Revolving Credit Facilities Credit Agreement The Company entered into a Credit Agreement, dated as of August 2, 2010 , subsequently amended most recently as of March 15, 2019 , among the Company, the lenders party thereto and Bank of America, N.A., as Administrative Agent (the “Prior Credit Agreement”). The Company refinanced its debt on July 16, 2019 . At July 15, 2019, immediately preceding the refinancing, the Prior Credit Agreement included a revolving commitment amount of $175.0 million and $160.0 million in the aggregate through September 25, 2019 and September 25, 2020 , respectively (the “Prior Credit Facility”). The Prior Credit Agreement also provided the Company the right to increase the aggregate commitment amount by an additional $50.0 million . Outstanding borrowings under the Prior Credit Facility were guaranteed by the Company’s material domestic subsidiaries, as defined in the Prior Credit Agreement. The Company’s obligations under the Prior Credit Agreement and such domestic subsidiaries’ guaranty obligations were secured by substantially all of their respective assets. The ranges of applicable rates charged for interest on outstanding loans and letters of credit were 50 - 225 basis point spread for loans based on the base rate and 150 - 325 basis point spread for letter of credit fees and loans based on the Eurodollar rate. The most recent amendment (i) modified the definition of the term “Consolidated EBITDA” as used in the covenant calculations, (ii) increased the maximum leverage ratio to which the Company is subject for the trailing twelve month periods ended December 31, 2018 and March 31, 2019 and (iii) decreased the minimum interest coverage ratio to which the Company is subject for the trailing twelve month periods ended December 31, 2018 and March 31, 2019. All ratios for fiscal periods thereafter remained unchanged. The terms of the Prior Credit Agreement included various covenants, including covenants that required the Company to maintain a maximum leverage ratio and a minimum interest coverage ratio. The most recent amendment to the Prior Credit Agreement modified the maximum leverage ratio from 3.50 to 1.00 to 4.50 to 1.00 for the trailing twelve months ended December 31, 2018, and from 3.00 to 1.00 to 4.75 to 1.00 for the trailing twelve months ended March 31, 2019. The maximum leverage ratio is 3.00 to 1.00 for the trailing twelve months ended June 30, 2019 and each period thereafter. The most recent amendment to the Prior Credit Agreement also modified the minimum interest coverage ratio from 5.00 to 1.00 to 4.00 to 1.00 for the trailing twelve months ended December 31, 2018 and from 5.00 to 1.00 to 3.50 to 1.00 for the trailing twelve months ended March 31, 2019. The minimum interest coverage ratio is 5.00 to 1.00 for the trailing twelve months ended June 30, 2019 and each period thereafter. The Company was in violation of the debt covenants under the Prior Credit Agreement as of June 30, 2019; however, the Company successfully completed refinancing of its debt on July 16, 2019, which is further discussed below. ABL Credit Agreement On July 16, 2019 , the Company and certain of its direct and indirect subsidiaries entered into a loan and security agreement (the “ABL Credit Agreement”) with Bank of America, N.A., as administrative agent, lender, issuing bank and collateral agent, and JPMorgan Chase Bank, N.A. and PNC Bank, National Association, as lenders (the “ABL Credit Facility”). The Company used the initial proceeds from the ABL Credit Facility (in combination with the initial proceeds from the Term Loan Credit Facility discussed in Note 10 , Long-Term Debt ) to repay in full the Prior Credit Facility, along with fees and transaction expenses incurred in connection with the closing of the ABL Credit Facility and for working capital purposes. Some, but not all, lenders from the Prior Credit Agreement continued as lenders in the ABL Credit Agreement. Unamortized deferred financing fees associated with non-continuing lenders of $0.1 million were written off as a result of the refinancing. The ABL Credit Facility consists of a $105 million asset-based revolving line of credit, of which up to (i) $15 million may be used for UK Revolver Loans (as defined in the ABL Credit Agreement), (ii) $10.5 million may be used for Swingline Loans (as defined in the ABL Credit Agreement), and (iii) $10 million may be used for letters of credit. The ABL Credit Agreement provides that the revolving line of credit may be increased by up to an additional $20 million following satisfaction of certain conditions. The ABL Credit Facility matures on July 16, 2024 . Advances under the ABL Credit Facility bear interest at either: (a) LIBOR (as defined in the ABL Credit Agreement), plus an applicable margin ranging from 2.00% to 2.50% for US LIBOR Loans and UK LIBOR Loans (each as defined in the ABL Credit Agreement); (b) the US Base Rate (as defined in the ABL Credit Agreement), plus an applicable margin ranging from 1.00% to 1.50% for US Base Rate Loans (as defined in the ABL Credit Agreement); or (c) the UK Base Rate (as defined in the ABL Credit Agreement), plus an applicable margin ranging from 2.00% to 2.50% for UK Base Rate Loans (as defined in the ABL Credit Agreement). The Company’s obligations under the ABL Credit Agreement are guaranteed by certain of its subsidiaries pursuant to a guaranty included in the ABL Credit Agreement. As security for the Company’s and its subsidiaries’ obligations under the ABL Credit Agreement, each of the Company and the subsidiaries party thereto have granted: (i) a first priority lien on the Company’s and such subsidiaries’ accounts receivable, chattel paper (to the extent evidencing accounts receivable), inventory, deposit accounts, general intangibles related to the foregoing and proceeds related thereto; and (ii) a second-priority lien on substantially all its other tangible and intangible personal property, including the capital stock of certain of the Company’s direct and indirect subsidiaries. The priority of the liens is described in an intercreditor agreement between Bank of America, N.A. as ABL Agent and TCW Asset Management Company LLC as Term Agent (the “Intercreditor Agreement”). The ABL Credit Agreement contains a minimum fixed charge coverage ratio financial covenant that must be maintained when excess availability falls below a specified amount. In addition, the ABL Credit Agreement contains negative covenants limiting, among other things, additional indebtedness, transactions with affiliates, additional liens, sales of assets, dividends, investments and advances, prepayments of debt, mergers and acquisitions, and other matters customarily restricted in such agreements. The ABL Credit Agreement also contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, failure of any guaranty or security document supporting the ABL Credit Agreement to be in full force and effect, and a change of control of the Company’s business. The usage and total commitment of these Loans shall not exceed the respective borrowing base set forth in the ABL Credit Agreement. Within the ABL Credit Agreement, there is a cash dominion requirement for the United States ("US") and United Kingdom ("UK"). In the United States, Bank of America, N.A. (the agent) shall only exercise cash dominion and apply all customer collections of the US borrowers to US obligations when a Trigger Period exists, as defined in the ABL Credit Agreement. In the United Kingdom, all customer collections of the UK borrowers will be applied on a daily basis to any outstanding UK obligations and any credit balance will be transferred back to an account of the UK borrowers. The customer collections of the UK borrowers are only applied against the UK obligations. As a result of the cash dominion, the amount outstanding under the ABL Credit Agreement for UK borrowers has been classified as a current obligation. The amount outstanding under the ABL Credit Agreement for US borrowers has been classified as a long-term obligation, as no Trigger Period has yet occurred nor is considered probable. The amounts outstanding under the ABL Credit Agreement as of December 31, 2019 for the UK borrowers and the US borrowers are $0.6 million and $60.1 million , respectively. At the time of the Company’s debt refinancing, there was $0.3 million of unamortized debt issuance fees associated with lenders under both the Prior Credit Agreement and the ABL Credit Agreement. Additionally, the Company incurred $1.7 million of deferred financing fees related to the financing transaction described above. The aforementioned deferred financing fees are presented as an asset and amortized on a straight-line basis over the term of the ABL Credit Agreement. Amortization of deferred financing fees is recorded in interest expense and was approximately $0.2 million . The Company has determined that the interest rate reset features embedded in the ABL Credit Agreement constitute an embedded derivative (collectively, the “ABL Embedded Derivative”) which has been bifurcated from the ABL Credit Facility and recorded as a derivative liability at fair value, with a corresponding discount recorded to the associated debt. The Company recorded approximately $0.1 million in interest expense for the amortization of the ABL Embedded Derivative discount through December 31, 2019 . The following schedule shows the change in fair value of the ABL Embedded Derivative at December 31, 2019 (in thousands): December 31, 2018 $ — Issuance of associated debt (July 16, 2019) 599 Change in fair value (102 ) December 31, 2019 $ 497 The change in fair value is recorded within other expense on the Company’s consolidated statements of comprehensive (loss) income. Refer to Note 13 , Fair Value Measurement , for further discussion. The Company’s ABL Credit Facility at December 31, 2019 is summarized as follows (in thousands): ABL Credit Facility outstanding $ 60,727 Less: Current portion of ABL Credit Facility for UK Borrowings (593 ) Long-term portion of ABL Credit Facility 60,134 Less: ABL Embedded Derivative Discount (1) (545 ) ABL Embedded Derivative Liability (2) 497 Total Revolving credit facility - non-current $ 60,086 (1) Original value of embedded derivative at July 16, 2019, less amortization. (2) Value of embedded derivative as of December 31, 2019. At December 31, 2019 , the Company had $1.7 million of letters of credit outstanding which have not been drawn upon. On February 22, 2016 , the Company entered into a revolving credit facility (the “China Revolving Credit Facility”) with Bank of America N.A. to support ongoing working capital needs of the Company's operations in China. The China Revolving Credit Facility includes a revolving commitment amount of $5 million whereby maturity dates vary based on each individual drawdown. On July 16, 2019 , the Company modified the China Revolving Credit Facility to decrease the total revolving commitment amount from $5 million to $1 million . All other terms of the China Revolving Credit Facility remained unchanged. Outstanding borrowings under the China Revolving Credit 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 China Revolving Credit Facility include limitations on use of funds for working capital purposes as well as customary representations and warranties made by the Company. At December 31, 2019 , the Company had $0.5 million of unused availability under the China Revolving Credit Facility. Long-Term Debt On July 16, 2019 , the Company and certain of its direct and indirect subsidiaries entered into a loan and security agreement (the “Term Loan Credit Agreement”) with TCW Asset Management Company LLC, as administrative agent and collateral agent, and the financial institutions party thereto as lenders (the “Term Loan Credit Facility”). The Term Loan Credit Facility consists of a $100.0 million term loan facility. The Term Loan Credit Facility matures on July 16, 2024 . Principal on the Term Loan Credit Facility is due in quarterly installments, commencing on September 30, 2019, in an amount equal to $1.3 million per quarter during the first year of the Term Loan Credit Facility and $2.5 million each quarter thereafter. The loans under the Term Loan Credit Facility bear interest at either: (a) the LIBOR Rate (as defined in the Term Loan Credit Agreement), plus an applicable margin ranging from 6.25% to 10.75% ; or (b) the Prime Rate (as defined in the Term Loan Credit Agreement), plus an applicable margin ranging from 5.25% to 9.75% . The Company’s obligations under the Term Loan Credit Agreement are guaranteed by certain of its subsidiaries pursuant to a guaranty included in the Term Loan Credit Agreement. As security for the Company’s and its subsidiaries’ obligations under the Term Loan Credit Agreement, each of the Company and the subsidiaries party thereto have granted: (i) a first priority lien on substantially all its tangible and intangible personal property (other than the assets described in the following clause (ii)), including the capital stock of certain of the Company’s direct and indirect subsidiaries, and (ii) a second priority lien on its accounts receivable, chattel paper (to the extent evidencing accounts receivable), inventory, deposit accounts, general intangibles related to the foregoing and proceeds related thereto. The priority of the liens is described in the Intercreditor Agreement. The Term Loan Credit Agreement contains a minimum fixed charge coverage ratio financial covenant, a maximum total leverage ratio financial covenant, a minimum liquidity financial covenant and a maximum capital expenditures covenant, each of which must be maintained for the periods described in the Term Loan Credit Agreement. In addition, the Term Loan Credit Agreement contains negative covenants limiting, among other things, additional indebtedness, transactions with affiliates, additional liens, sales of assets, dividends, investments and advances, prepayments of debt, mergers and acquisitions, and other matters customarily restricted in such agreements. The Term Loan Credit Agreement also contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, failure of any guaranty or security document supporting the Term Loan Credit Agreement to be in full force and effect, and a change of control of the Company’s business. The principal outstanding as of December 31, 2019 is $97.5 million . The Company has determined the interest rate reset features embedded in the Term Loan Credit Agreement constitute an embedded derivative (collectively, the “Term Loan Embedded Derivative”) which has been bifurcated from Term Loan Credit Facility and recorded as a derivative liability at fair value, with a corresponding discount recorded to the associated debt. The Company recorded immaterial interest expense for the amortization of the Term Loan Embedded Derivative discount through December 31, 2019 . The following schedule shows the change in fair value of the Term Loan Embedded Derivative at December 31, 2019 (in thousands): December 31, 2018 $ — Issuance of associated debt (July 16, 2019) 481 Change in fair value (74 ) December 31, 2019 $ 407 The change in fair value is recorded within other expense on the Company’s consolidated statements of operations. Refer to Note 13 , Fair Value Measurement , for further discussion. In connection with the closing of the Term Loan Credit Agreement, the Company issued a Warrant (as defined below) to Macquarie US Trading LLC, an affiliate of TCW Asset Management Company LLC, to purchase fully paid and non-assessable shares of common stock of the Company. The Warrant is initially exercisable for an aggregate of 1,335,337 shares of the Company’s common stock with a per share exercise price of $0.01 (the “Initial Warrant”). The Initial Warrant is exercisable on or after (A) the date which is 10 days after the earlier of (x) the date that the Company delivers its financial statements for the fiscal quarter ending March 31, 2020 to the administrative agent and (y) May 15, 2020 (the “First Quarter Reporting Period End Date”) through (B) July 16, 2024 . In addition, if either (x) the Total Leverage Ratio (as defined in the Term Loan Credit Agreement) as of March 31, 2020 for the four (4) consecutive fiscal quarter period then ended is greater than 4.25 to 1.00 or (y) the Company fails to deliver financial statements to the administrative agent as required by the Term Loan Credit Agreement for the fiscal quarter ending March 31, 2020 , then from the First Quarter Reporting Period End Date through July 16, 2024 , the Warrant shall also be exercisable for an additional 2.49% of the Company’s common stock calculated on a fully-diluted basis (the “Additional Warrant” or “Contingent Warrant” and together with the Initial Warrant, the “Warrant”). The Warrant may be exercised on a cashless basis, and the number of shares for which the Warrant are exercisable and the associated exercise price are subject to certain proportional adjustments as set forth in the Warrant. In addition, the holder of the Warrant is entitled to certain piggyback registration rights. In the event that the Total Leverage Ratio is less than 4.00 to 1.00 at any time between April 1, 2020 and March 31, 2021 (the “Buyback Period”) based on financial statements delivered to agent pursuant to the terms of the Term Loan Credit Agreement, and calculated on a pro forma basis factoring in the repurchase described in the Warrant, then on any day during the Buyback Period, the Company shall be permitted, upon 5 business days prior written notice given to Holder, to repurchase either (x) any portion of the Warrant not yet exercised and/or (y) any shares of common stock received from the Company pursuant to prior exercise of the Warrant, in each case at the Applicable Buyback Price (as defined in the Warrant) by paying cash to the Holder (“Buyback Option”). The Initial Warrant was recorded as a liability at fair value and will be treated as a discount on the associated debt. The following schedule shows the change in fair value of the Initial Warrant at December 31, 2019 (in thousands): December 31, 2018 $ — Issuance of initial warrant (July 16, 2019) 4,304 Change in fair value 2,233 December 31, 2019 $ 6,537 The change in fair value is recorded within other expense on the Company’s consolidated statements of comprehensive loss (income). The fair value associated with the Contingent Warrant is considered de minimis at December 31, 2019 . The Term Loan Credit Facility is presented net of the related original issue discount (“OID”), which was $8.5 million on the issuance date of July 16, 2019 . Accretion of OID is included in interest expense. The Company incurred $3.7 million of deferred financing fees related to the Term Loan Credit Agreement that has been recorded as a debt discount. The combined debt discount from the Initial Warrant liability, the Term Loan Embedded Derivative liability, and the debt issuance fees is being amortized into interest expense over the term of the Term Loan Credit Facility using the effective interest method. The Company recorded interest expense for the amortization of the Initial Warrant liability and Term Loan Embedded Derivative liability debt discounts of $0.4 million for the year ended December 31, 2019 and recorded an additional $0.3 million of interest expense for the amortization of the debt issuance fees for the year ended December 31, 2019 . The Company’s Term Loan Credit Facility at December 31, 2019 is summarized as follows (in thousands): Term Loan Credit Facility outstanding $ 97,500 Less: Current portion of Term Loan Credit Facility (7,500 ) Long-term portion of Term Loan Credit Facility 90,000 Less: Original Issue Discount (1) (7,702 ) Term Loan Embedded Derivative Liability (2) 407 Initial Warrant Liability (2) 6,537 Total Term Loan - Non-current $ 89,242 (1) Original value of OID attributable to debt issuance costs, warrant liability and embedded derivatives at July 16, 2019, less amortization. (2) Value of warrant liability and embedded derivatives as of December 31, 2019. Remediation of Going Concern Following the successful refinancing of its debt described above and in Note 9 , Revolving Credit Facilities |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Revolving Credit Facilities Credit Agreement The Company entered into a Credit Agreement, dated as of August 2, 2010 , subsequently amended most recently as of March 15, 2019 , among the Company, the lenders party thereto and Bank of America, N.A., as Administrative Agent (the “Prior Credit Agreement”). The Company refinanced its debt on July 16, 2019 . At July 15, 2019, immediately preceding the refinancing, the Prior Credit Agreement included a revolving commitment amount of $175.0 million and $160.0 million in the aggregate through September 25, 2019 and September 25, 2020 , respectively (the “Prior Credit Facility”). The Prior Credit Agreement also provided the Company the right to increase the aggregate commitment amount by an additional $50.0 million . Outstanding borrowings under the Prior Credit Facility were guaranteed by the Company’s material domestic subsidiaries, as defined in the Prior Credit Agreement. The Company’s obligations under the Prior Credit Agreement and such domestic subsidiaries’ guaranty obligations were secured by substantially all of their respective assets. The ranges of applicable rates charged for interest on outstanding loans and letters of credit were 50 - 225 basis point spread for loans based on the base rate and 150 - 325 basis point spread for letter of credit fees and loans based on the Eurodollar rate. The most recent amendment (i) modified the definition of the term “Consolidated EBITDA” as used in the covenant calculations, (ii) increased the maximum leverage ratio to which the Company is subject for the trailing twelve month periods ended December 31, 2018 and March 31, 2019 and (iii) decreased the minimum interest coverage ratio to which the Company is subject for the trailing twelve month periods ended December 31, 2018 and March 31, 2019. All ratios for fiscal periods thereafter remained unchanged. The terms of the Prior Credit Agreement included various covenants, including covenants that required the Company to maintain a maximum leverage ratio and a minimum interest coverage ratio. The most recent amendment to the Prior Credit Agreement modified the maximum leverage ratio from 3.50 to 1.00 to 4.50 to 1.00 for the trailing twelve months ended December 31, 2018, and from 3.00 to 1.00 to 4.75 to 1.00 for the trailing twelve months ended March 31, 2019. The maximum leverage ratio is 3.00 to 1.00 for the trailing twelve months ended June 30, 2019 and each period thereafter. The most recent amendment to the Prior Credit Agreement also modified the minimum interest coverage ratio from 5.00 to 1.00 to 4.00 to 1.00 for the trailing twelve months ended December 31, 2018 and from 5.00 to 1.00 to 3.50 to 1.00 for the trailing twelve months ended March 31, 2019. The minimum interest coverage ratio is 5.00 to 1.00 for the trailing twelve months ended June 30, 2019 and each period thereafter. The Company was in violation of the debt covenants under the Prior Credit Agreement as of June 30, 2019; however, the Company successfully completed refinancing of its debt on July 16, 2019, which is further discussed below. ABL Credit Agreement On July 16, 2019 , the Company and certain of its direct and indirect subsidiaries entered into a loan and security agreement (the “ABL Credit Agreement”) with Bank of America, N.A., as administrative agent, lender, issuing bank and collateral agent, and JPMorgan Chase Bank, N.A. and PNC Bank, National Association, as lenders (the “ABL Credit Facility”). The Company used the initial proceeds from the ABL Credit Facility (in combination with the initial proceeds from the Term Loan Credit Facility discussed in Note 10 , Long-Term Debt ) to repay in full the Prior Credit Facility, along with fees and transaction expenses incurred in connection with the closing of the ABL Credit Facility and for working capital purposes. Some, but not all, lenders from the Prior Credit Agreement continued as lenders in the ABL Credit Agreement. Unamortized deferred financing fees associated with non-continuing lenders of $0.1 million were written off as a result of the refinancing. The ABL Credit Facility consists of a $105 million asset-based revolving line of credit, of which up to (i) $15 million may be used for UK Revolver Loans (as defined in the ABL Credit Agreement), (ii) $10.5 million may be used for Swingline Loans (as defined in the ABL Credit Agreement), and (iii) $10 million may be used for letters of credit. The ABL Credit Agreement provides that the revolving line of credit may be increased by up to an additional $20 million following satisfaction of certain conditions. The ABL Credit Facility matures on July 16, 2024 . Advances under the ABL Credit Facility bear interest at either: (a) LIBOR (as defined in the ABL Credit Agreement), plus an applicable margin ranging from 2.00% to 2.50% for US LIBOR Loans and UK LIBOR Loans (each as defined in the ABL Credit Agreement); (b) the US Base Rate (as defined in the ABL Credit Agreement), plus an applicable margin ranging from 1.00% to 1.50% for US Base Rate Loans (as defined in the ABL Credit Agreement); or (c) the UK Base Rate (as defined in the ABL Credit Agreement), plus an applicable margin ranging from 2.00% to 2.50% for UK Base Rate Loans (as defined in the ABL Credit Agreement). The Company’s obligations under the ABL Credit Agreement are guaranteed by certain of its subsidiaries pursuant to a guaranty included in the ABL Credit Agreement. As security for the Company’s and its subsidiaries’ obligations under the ABL Credit Agreement, each of the Company and the subsidiaries party thereto have granted: (i) a first priority lien on the Company’s and such subsidiaries’ accounts receivable, chattel paper (to the extent evidencing accounts receivable), inventory, deposit accounts, general intangibles related to the foregoing and proceeds related thereto; and (ii) a second-priority lien on substantially all its other tangible and intangible personal property, including the capital stock of certain of the Company’s direct and indirect subsidiaries. The priority of the liens is described in an intercreditor agreement between Bank of America, N.A. as ABL Agent and TCW Asset Management Company LLC as Term Agent (the “Intercreditor Agreement”). The ABL Credit Agreement contains a minimum fixed charge coverage ratio financial covenant that must be maintained when excess availability falls below a specified amount. In addition, the ABL Credit Agreement contains negative covenants limiting, among other things, additional indebtedness, transactions with affiliates, additional liens, sales of assets, dividends, investments and advances, prepayments of debt, mergers and acquisitions, and other matters customarily restricted in such agreements. The ABL Credit Agreement also contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, failure of any guaranty or security document supporting the ABL Credit Agreement to be in full force and effect, and a change of control of the Company’s business. The usage and total commitment of these Loans shall not exceed the respective borrowing base set forth in the ABL Credit Agreement. Within the ABL Credit Agreement, there is a cash dominion requirement for the United States ("US") and United Kingdom ("UK"). In the United States, Bank of America, N.A. (the agent) shall only exercise cash dominion and apply all customer collections of the US borrowers to US obligations when a Trigger Period exists, as defined in the ABL Credit Agreement. In the United Kingdom, all customer collections of the UK borrowers will be applied on a daily basis to any outstanding UK obligations and any credit balance will be transferred back to an account of the UK borrowers. The customer collections of the UK borrowers are only applied against the UK obligations. As a result of the cash dominion, the amount outstanding under the ABL Credit Agreement for UK borrowers has been classified as a current obligation. The amount outstanding under the ABL Credit Agreement for US borrowers has been classified as a long-term obligation, as no Trigger Period has yet occurred nor is considered probable. The amounts outstanding under the ABL Credit Agreement as of December 31, 2019 for the UK borrowers and the US borrowers are $0.6 million and $60.1 million , respectively. At the time of the Company’s debt refinancing, there was $0.3 million of unamortized debt issuance fees associated with lenders under both the Prior Credit Agreement and the ABL Credit Agreement. Additionally, the Company incurred $1.7 million of deferred financing fees related to the financing transaction described above. The aforementioned deferred financing fees are presented as an asset and amortized on a straight-line basis over the term of the ABL Credit Agreement. Amortization of deferred financing fees is recorded in interest expense and was approximately $0.2 million . The Company has determined that the interest rate reset features embedded in the ABL Credit Agreement constitute an embedded derivative (collectively, the “ABL Embedded Derivative”) which has been bifurcated from the ABL Credit Facility and recorded as a derivative liability at fair value, with a corresponding discount recorded to the associated debt. The Company recorded approximately $0.1 million in interest expense for the amortization of the ABL Embedded Derivative discount through December 31, 2019 . The following schedule shows the change in fair value of the ABL Embedded Derivative at December 31, 2019 (in thousands): December 31, 2018 $ — Issuance of associated debt (July 16, 2019) 599 Change in fair value (102 ) December 31, 2019 $ 497 The change in fair value is recorded within other expense on the Company’s consolidated statements of comprehensive (loss) income. Refer to Note 13 , Fair Value Measurement , for further discussion. The Company’s ABL Credit Facility at December 31, 2019 is summarized as follows (in thousands): ABL Credit Facility outstanding $ 60,727 Less: Current portion of ABL Credit Facility for UK Borrowings (593 ) Long-term portion of ABL Credit Facility 60,134 Less: ABL Embedded Derivative Discount (1) (545 ) ABL Embedded Derivative Liability (2) 497 Total Revolving credit facility - non-current $ 60,086 (1) Original value of embedded derivative at July 16, 2019, less amortization. (2) Value of embedded derivative as of December 31, 2019. At December 31, 2019 , the Company had $1.7 million of letters of credit outstanding which have not been drawn upon. On February 22, 2016 , the Company entered into a revolving credit facility (the “China Revolving Credit Facility”) with Bank of America N.A. to support ongoing working capital needs of the Company's operations in China. The China Revolving Credit Facility includes a revolving commitment amount of $5 million whereby maturity dates vary based on each individual drawdown. On July 16, 2019 , the Company modified the China Revolving Credit Facility to decrease the total revolving commitment amount from $5 million to $1 million . All other terms of the China Revolving Credit Facility remained unchanged. Outstanding borrowings under the China Revolving Credit 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 China Revolving Credit Facility include limitations on use of funds for working capital purposes as well as customary representations and warranties made by the Company. At December 31, 2019 , the Company had $0.5 million of unused availability under the China Revolving Credit Facility. Long-Term Debt On July 16, 2019 , the Company and certain of its direct and indirect subsidiaries entered into a loan and security agreement (the “Term Loan Credit Agreement”) with TCW Asset Management Company LLC, as administrative agent and collateral agent, and the financial institutions party thereto as lenders (the “Term Loan Credit Facility”). The Term Loan Credit Facility consists of a $100.0 million term loan facility. The Term Loan Credit Facility matures on July 16, 2024 . Principal on the Term Loan Credit Facility is due in quarterly installments, commencing on September 30, 2019, in an amount equal to $1.3 million per quarter during the first year of the Term Loan Credit Facility and $2.5 million each quarter thereafter. The loans under the Term Loan Credit Facility bear interest at either: (a) the LIBOR Rate (as defined in the Term Loan Credit Agreement), plus an applicable margin ranging from 6.25% to 10.75% ; or (b) the Prime Rate (as defined in the Term Loan Credit Agreement), plus an applicable margin ranging from 5.25% to 9.75% . The Company’s obligations under the Term Loan Credit Agreement are guaranteed by certain of its subsidiaries pursuant to a guaranty included in the Term Loan Credit Agreement. As security for the Company’s and its subsidiaries’ obligations under the Term Loan Credit Agreement, each of the Company and the subsidiaries party thereto have granted: (i) a first priority lien on substantially all its tangible and intangible personal property (other than the assets described in the following clause (ii)), including the capital stock of certain of the Company’s direct and indirect subsidiaries, and (ii) a second priority lien on its accounts receivable, chattel paper (to the extent evidencing accounts receivable), inventory, deposit accounts, general intangibles related to the foregoing and proceeds related thereto. The priority of the liens is described in the Intercreditor Agreement. The Term Loan Credit Agreement contains a minimum fixed charge coverage ratio financial covenant, a maximum total leverage ratio financial covenant, a minimum liquidity financial covenant and a maximum capital expenditures covenant, each of which must be maintained for the periods described in the Term Loan Credit Agreement. In addition, the Term Loan Credit Agreement contains negative covenants limiting, among other things, additional indebtedness, transactions with affiliates, additional liens, sales of assets, dividends, investments and advances, prepayments of debt, mergers and acquisitions, and other matters customarily restricted in such agreements. The Term Loan Credit Agreement also contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, failure of any guaranty or security document supporting the Term Loan Credit Agreement to be in full force and effect, and a change of control of the Company’s business. The principal outstanding as of December 31, 2019 is $97.5 million . The Company has determined the interest rate reset features embedded in the Term Loan Credit Agreement constitute an embedded derivative (collectively, the “Term Loan Embedded Derivative”) which has been bifurcated from Term Loan Credit Facility and recorded as a derivative liability at fair value, with a corresponding discount recorded to the associated debt. The Company recorded immaterial interest expense for the amortization of the Term Loan Embedded Derivative discount through December 31, 2019 . The following schedule shows the change in fair value of the Term Loan Embedded Derivative at December 31, 2019 (in thousands): December 31, 2018 $ — Issuance of associated debt (July 16, 2019) 481 Change in fair value (74 ) December 31, 2019 $ 407 The change in fair value is recorded within other expense on the Company’s consolidated statements of operations. Refer to Note 13 , Fair Value Measurement , for further discussion. In connection with the closing of the Term Loan Credit Agreement, the Company issued a Warrant (as defined below) to Macquarie US Trading LLC, an affiliate of TCW Asset Management Company LLC, to purchase fully paid and non-assessable shares of common stock of the Company. The Warrant is initially exercisable for an aggregate of 1,335,337 shares of the Company’s common stock with a per share exercise price of $0.01 (the “Initial Warrant”). The Initial Warrant is exercisable on or after (A) the date which is 10 days after the earlier of (x) the date that the Company delivers its financial statements for the fiscal quarter ending March 31, 2020 to the administrative agent and (y) May 15, 2020 (the “First Quarter Reporting Period End Date”) through (B) July 16, 2024 . In addition, if either (x) the Total Leverage Ratio (as defined in the Term Loan Credit Agreement) as of March 31, 2020 for the four (4) consecutive fiscal quarter period then ended is greater than 4.25 to 1.00 or (y) the Company fails to deliver financial statements to the administrative agent as required by the Term Loan Credit Agreement for the fiscal quarter ending March 31, 2020 , then from the First Quarter Reporting Period End Date through July 16, 2024 , the Warrant shall also be exercisable for an additional 2.49% of the Company’s common stock calculated on a fully-diluted basis (the “Additional Warrant” or “Contingent Warrant” and together with the Initial Warrant, the “Warrant”). The Warrant may be exercised on a cashless basis, and the number of shares for which the Warrant are exercisable and the associated exercise price are subject to certain proportional adjustments as set forth in the Warrant. In addition, the holder of the Warrant is entitled to certain piggyback registration rights. In the event that the Total Leverage Ratio is less than 4.00 to 1.00 at any time between April 1, 2020 and March 31, 2021 (the “Buyback Period”) based on financial statements delivered to agent pursuant to the terms of the Term Loan Credit Agreement, and calculated on a pro forma basis factoring in the repurchase described in the Warrant, then on any day during the Buyback Period, the Company shall be permitted, upon 5 business days prior written notice given to Holder, to repurchase either (x) any portion of the Warrant not yet exercised and/or (y) any shares of common stock received from the Company pursuant to prior exercise of the Warrant, in each case at the Applicable Buyback Price (as defined in the Warrant) by paying cash to the Holder (“Buyback Option”). The Initial Warrant was recorded as a liability at fair value and will be treated as a discount on the associated debt. The following schedule shows the change in fair value of the Initial Warrant at December 31, 2019 (in thousands): December 31, 2018 $ — Issuance of initial warrant (July 16, 2019) 4,304 Change in fair value 2,233 December 31, 2019 $ 6,537 The change in fair value is recorded within other expense on the Company’s consolidated statements of comprehensive loss (income). The fair value associated with the Contingent Warrant is considered de minimis at December 31, 2019 . The Term Loan Credit Facility is presented net of the related original issue discount (“OID”), which was $8.5 million on the issuance date of July 16, 2019 . Accretion of OID is included in interest expense. The Company incurred $3.7 million of deferred financing fees related to the Term Loan Credit Agreement that has been recorded as a debt discount. The combined debt discount from the Initial Warrant liability, the Term Loan Embedded Derivative liability, and the debt issuance fees is being amortized into interest expense over the term of the Term Loan Credit Facility using the effective interest method. The Company recorded interest expense for the amortization of the Initial Warrant liability and Term Loan Embedded Derivative liability debt discounts of $0.4 million for the year ended December 31, 2019 and recorded an additional $0.3 million of interest expense for the amortization of the debt issuance fees for the year ended December 31, 2019 . The Company’s Term Loan Credit Facility at December 31, 2019 is summarized as follows (in thousands): Term Loan Credit Facility outstanding $ 97,500 Less: Current portion of Term Loan Credit Facility (7,500 ) Long-term portion of Term Loan Credit Facility 90,000 Less: Original Issue Discount (1) (7,702 ) Term Loan Embedded Derivative Liability (2) 407 Initial Warrant Liability (2) 6,537 Total Term Loan - Non-current $ 89,242 (1) Original value of OID attributable to debt issuance costs, warrant liability and embedded derivatives at July 16, 2019, less amortization. (2) Value of warrant liability and embedded derivatives as of December 31, 2019. Remediation of Going Concern Following the successful refinancing of its debt described above and in Note 9 , Revolving Credit Facilities |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Secured Borrowing Arrangements During 2019, certain international subsidiaries were party to short-term secured borrowing arrangements which allowed the Company to borrow against the value of a pool of current accounts receivable. The Company retained possession of the accounts receivable which were pledged as collateral. The pledged amounts were immaterial to the consolidated accounts receivable balance while the arrangement was in place. The secured borrowing arrangement ended in the second quarter of 2019. Legal 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. 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 at the time) 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes ("ASC 740"), under which deferred tax assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying values of assets and liabilities and their respective tax bases. The provision for income taxes consisted of the following components for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Current income tax expense (benefit): Federal $ 795 $ (781 ) $ 3,037 State (13 ) 180 53 Foreign 3,797 4,558 4,094 Total current income tax expense 4,579 3,957 7,184 Deferred income tax expense (benefit): Federal (565 ) (3,385 ) 1,984 State 840 (90 ) 1,556 Foreign (1,154 ) (1,129 ) 533 Total deferred income tax expense (879 ) (4,604 ) 4,073 Provision (benefit) for income taxes $ 3,700 $ (647 ) $ 11,257 The provision for income taxes for the years ended December 31, 2019 , 2018 and 2017 differs from the amount computed by applying the U.S. federal income tax rate of 21% to pretax income (loss) because of the effect of the following items (in thousands): Year Ended December 31, 2019 2018 2017 Tax (benefit) provision at U.S. federal income tax rate $ (1,342 ) $ (16,239 ) $ 9,506 State income taxes, net of federal income tax effect (775 ) (307 ) 883 Federal, state and international deferred tax rate change 1,222 1,135 (4,907 ) Transition tax — (924 ) 5,323 Effect of non-US operations (1,859 ) (2,424 ) (2,228 ) Nontaxable contingent liability fair value changes and goodwill impairment — 11,254 237 Research and development credit (202 ) (40 ) (38 ) Change in valuation allowances (98 ) 3,973 2,103 Prior year provision to return adjustment (57 ) 942 (581 ) Write-off of deferred taxes and tax receivables 1,961 431 70 Nondeductible expense and other 904 428 889 Tax reform global intangible low-taxed income 3,178 1,124 — Tax reform BEAT 768 — — Provision (benefit) for income taxes $ 3,700 $ (647 ) $ 11,257 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the Company's tax assets and liabilities for financial reporting purposes and the amounts used for income tax return reporting purposes. At December 31, 2019 and 2018 , the Company’s deferred tax assets and liabilities consisted of the following (in thousands): December 31, 2019 2018 Deferred tax assets: Inventory reserve $ 271 $ 992 Other reserves and allowances 7,870 3,470 Income tax basis in excess of financial statement basis in intangible assets 509 1,085 Deductible stock-based compensation 2,829 3,257 ASC 842 lease liability 8,989 — Net operating loss carryforward 17,100 19,409 Tax credit carryforwards 402 500 Deferred tax assets 37,970 28,713 Valuation allowance (13,809 ) (13,946 ) Net deferred tax assets $ 24,161 $ 14,767 Deferred tax liabilities: Prepaid & other expenses $ (184 ) $ (284 ) Fixed assets (3,735 ) (4,826 ) Intangible assets (17,762 ) (16,067 ) ASC 842 right of use asset (8,351 ) — Deferred tax liabilities $ (30,032 ) $ (21,177 ) Net deferred tax liability $ (5,871 ) $ (6,410 ) The realizability of deferred income tax assets is based on a more likely than not threshold. If it is determined that it is more likely than not that deferred income tax assets will not be realized, a valuation allowance must be established against the deferred income tax assets. Realization of deferred tax assets is dependent primarily on the generation of future taxable income. In considering the need for a valuation allowance, the Company considers historical taxable income along with other positive and negative evidence in assessing the realizability of its deferred tax assets. The Company’s accounting policy is to consider deferred tax liabilities related to indefinite-lived intangible assets as a source of future taxable income when assessing the realizability of its indefinite-lived deferred tax assets. For the years ended December 31, 2019 and 2018 , the Company recorded a reduction of valuation allowances of $0.1 million and additional valuation allowances of $3.2 million , respectively. The Company believes that it is more likely than not that the benefit from certain state net operating loss carryforwards will not be realized. In recognition of this risk, the Company has provided a valuation allowance of $1.7 million on the deferred tax assets related to these state net operating carryforwards for the year ended December 31, 2019 . In addition, the Company recorded a decrease in valuation allowances of $1.8 million primarily related to the revaluation of French net operating losses from 28% to 25% based on law changes enacted during 2019. As of December 31, 2019 , the Company has gross federal and state net operating loss (“NOLs”) carryforwards of $10.8 million and $1.8 million , respectively. Of the $10.8 million federal NOL carryforwards, $10.4 million have an indefinite carryover to offset eighty percent of taxable income in a future period based on new legislation. The Internal Revenue Code imposes an annual limitation on the utilization of net operating loss carryforwards related to acquired corporations based on a statutory rate of return (usually the “applicable federal funds rate” as defined in the Internal Revenue Code) and the value of the corporation at the time of a “change in ownership” as defined by Section 382. The Company’s total federal NOL as of December 31, 2019 includes $0.4 million of NOLs from acquired corporations. These acquired NOLs have an annual limitation under Section 382 of the Internal Revenue Code of $0.2 million and begin to expire in 2023. The $1.8 million state NOL carryforwards begin to expire in 2024. As of December 31, 2019 , the Company had tax effected NOLs in Chile, China, Czech Republic, France, Germany, Italy, Japan, and Mexico of $0.6 million , $0.6 million , $0.5 million , $7.3 million , $1.5 million , $0.3 million , $0.5 million , and $0.1 million , respectively, which have an indefinite carryover period. A reserve for an uncertain tax position was recorded during prior years as a result of certain intercompany charges and expenses and as a result of a sale of intellectual property between the Company's subsidiaries. The following table summarizes the Company's uncertain tax positions (in thousands): December 31, 2019 2018 2017 Beginning balance $ 522 $ 499 $ 517 Additions (subtractions) based on tax positions related to the current year — — (35 ) Additions (subtractions) based on tax positions related to the prior year (257 ) — — Interest and penalties 14 23 17 Statute of limitations lapses — — — Ending balance $ 279 $ 522 $ 499 The Company reversed $0.3 million of its uncertain tax positions during the year ended December 31, 2019 . The gross unrecognized tax benefit had a 3.8% impact on the effective tax rate as of December 31, 2019 . As of December 31, 2019, we had $0.3 million of gross unrecognized tax benefits of which $0.3 million , if recognized, would affect our effective tax rate. The Company's intention is to indefinitely reinvest all undistributed earnings of its foreign subsidiaries in accordance with ASC 740. Deferred income taxes were not calculated on undistributed earnings (deficit) of foreign subsidiaries. The potential unrecorded deferred tax liability is impracticable to calculate for purposes of the financial statements. The Company's income (loss) before taxes for its foreign operations was $14.9 million , $(31.6) million and $14.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company’s unremitted earnings permanently reinvested was $46.7 million as of December 31, 2019 . The Company operates under a grant of income tax exemption in Puerto Rico, that became effective for certain operations occurring during the period ending December 31, 2018 and should remain in effect for 20 years as long as specific requirements are satisfied. The impact of this income tax exemption grant decreased foreign taxes by $2.9 million and $2.0 million for 2019 and 2018, respectively. The benefit of the tax exemption on diluted earnings per share was $0.05 and $0.04 per share for 2019 and 2018, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The Company estimates the fair value of the ABL Credit Facility and Term Loan Credit Facility, as defined in Note 9 , Revolving Credit Facilities , and Note 10 , Long-Term Debt , respectively, using current market yields. These current market yields are considered Level 2 inputs. The fair value of the Company’s warrant liabilities recorded in the Company’s financial statements is determined using the Black-Scholes-Merton option pricing model and the quoted price of the Company’s common stock in an active market, volatility and expected life, is a Level 3 measurement. Volatility is based on the actual market activity of the Company’s stock. The expected life is based on the remaining contractual term of the warrants, and the risk-free interest rate is based on the implied yield available on U.S. Treasury Securities with a maturity equivalent to the warrants’ expected life. The table below sets forth the assumptions used within the Black-Scholes-Merton option pricing model to value the Company’s warrant liabilities: Stock price $ 5.51 Exercise price $ 0.01 Time until expiration (years) 4.54 Expected volatility 53.0 % Risk-free interest rate 1.67 % Expected dividend yield — % The fair value of the Company’s embedded derivative liabilities recorded in the Company’s financial statements is determined using a probability-weighted discounted cash flow approach utilizing inputs outlined in Note 9 , Revolving Credit Facilities and Note 10 , Long-Term Debt . There were no transfers between levels for the years ended December 31, 2019 or 2018 . The table below sets forth the total fair value of the ABL Credit Facility, ABL Embedded Derivative, Term Loan Credit Facility, Term Loan Embedded Derivative, and Warrant as of December 31, 2019 (in thousands): December 31, 2019 Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value ABL Credit Facility $ 129,027 $ — $ 129,027 ABL Embedded Derivative — 497 497 Term Loan Credit Facility 91,980 — 91,980 Warrant — 6,537 6,537 Term Loan Embedded Derivative — 407 407 Total $ 221,007 $ 7,441 $ 228,448 |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | (Loss) 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. Warrants issued in connection with the Company's long-term debt were issued at a nominal exercise price and are considered outstanding at the date of issuance. 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 would include any shares issuable related to PSUs for which the performance conditions have been met as of the end of the period. For the year ended December 31, 2017 , 1.1 million options and restricted common shares were excluded from the calculation as these options and restricted common shares were anti-dilutive. There was no anti-dilutive impact for the years ended December 31, 2019 and 2018 as result of a net loss incurred in each period. The warrants related to the long-term debt are classified and recorded as a liability at fair value with subsequent changes in fair value recognized in earnings. Refer to Note 10 , Long-Term Debt , for additional information. For diluted EPS, fair value adjustments related to the warrants are adjusted out of earnings; however, as a result of the net loss incurred during the period, the adjustment is considered anti-dilutive and the loss for the period is not adjusted for the period ended December 31, 2019. The computation of basic and diluted (loss) earnings per common share for the years ended December 31, 2019 , 2018 and 2017 , is as follows (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Net (loss) income $ (10,075 ) $ (76,683 ) $ 15,869 Shares used in computing per share amounts: Weighted average shares outstanding 51,958 52,230 53,851 Issuance of warrants 1,335 — — Weighted average shares outstanding - basic 53,293 52,230 53,851 Employee stock options and restricted common shares — — 1,093 Weighted average shares outstanding - diluted 53,293 52,230 54,944 Basic (loss) earnings per share $ (0.19 ) $ (1.47 ) $ 0.29 Diluted (loss) earnings per share $ (0.19 ) $ (1.47 ) $ 0.29 |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2019 | |
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 $20.0 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 an increase in its authorized share repurchase program of up to an additional $30.0 million of the Company's common stock through open market and privately negotiated transactions over a tw o-year period ended May 31, 2019. As of December 31, 2019, the program purchase period had lapsed and shares are no longer available for purchase under this plan. During the year ended December 31, 2019 , the Company did not repurchase any shares of its common stock under this program. During the year ended December 31, 2018 , the Company repurchased 2,667,732 shares of its common stock for $25.6 million in the aggregate at an average cost of $9.60 |
Stock-Based Compensation Plan
Stock-Based Compensation Plan | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plan | Stock-Based Compensation Plan In 2006, the Company adopted the 2006 Stock Incentive Plan (the "Plan"). Upon adoption, all previously existing plans were merged into the Plan and ceased to separately exist. The Plan was amended and restated effective June 2016 resulting in an increase in the maximum number of shares of common stock that may be issued under the Plan by 2,900,000 , from 7,850,000 to 10,750,000 . The Plan was further amended and restated effective September 6, 2018 resulting in an increase in the maximum number of shares of common stock that may be issued under the Plan by 1,035,000 , from 10,750,000 to 11,785,000 . The Company’s policy is to issue shares resulting from the exercise of stock options, issuance of performance stock units and conversion of restricted stock units as new shares. The Company recorded share-based stock compensation expense of $6.3 million , $5.3 million and $6.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The related income tax benefit recognized for the years ended December 31, 2019 , 2018 and 2017 was $1.6 million , $1.4 million and $1.7 million , respectively. Stock Options Eligible employees receive non-qualified stock options as a portion of their total compensation. The options vest over various time periods depending upon the grant, but generally vest ratably over a four year service period. Vested options may be exercised and converted to one share of the Company’s common stock in exchange for the exercise price which is generally equal to the closing share price on the grant date. The Company’s stock options have a maximum term of 10 years from the date of grant. The stock-based compensation expense related to stock options for the years ended December 31, 2019 , 2018 and 2017 was $1.1 million , $2.5 million , and $2.9 million , respectively. A summary of stock option activity for the year ended December 31, 2019 is as follows (in thousands, except per share and contractual life amounts): Outstanding Options Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life (years) Outstanding at December 31, 2018 4,111 $ 8.53 $ 37 Granted — — — Exercised (27 ) 2.36 68 Forfeited/Expired (1,923 ) 8.55 5 Outstanding at December 31, 2019 2,161 $ 8.59 $ 2 5.87 Vested and exercisable at December 31, 2019 1,385 $ 8.56 $ 2 4.56 The total i ntrinsic value of stock options exercised during the years ended December 31, 2019 , 2018 and 2017 was $0.1 million , $1.0 million and $1.3 million , respectively. The wei ghted-average grant-date fair value of stock options granted during the years ended December 31, 2018 and 2017 was $3.37 and $4.42 , respectively. No options were granted in 2019. The aggregate intrinsic value of options outstanding and exercisable represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of each fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options in 2019 , 2018 and 2017 , respectively. These amounts change based on the fair market value of the Company’s stock which was $5.51 , $3.74 and $10.03 on the last business day of the years ended December 31, 2019 , 2018 and 2017 , respectively. The following assumptions were utilized in the Black-Scholes valuation model for options granted: 2019 (1) 2018 2017 Dividend yield — — — Risk-free interest rate — 2.76%-3.15% 1.98%-2.34% Expected life — 6.4 years 6.5 years Volatility — 35.0%-36.2% 36.0%-38.0% (1) No options were granted in 2019. No dividend yield is used as the Company does not currently, nor historically, pay dividends. The risk-free interest rate is based on actual U.S. Treasury zero-coupon rates for bonds commensurate with the expected term. Expected term is estimated based on historical experience related to similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The Company believes that its historical experience provides the best estimate of future expected life. The expected volatility assumption is based on the historical volatility of the Company’s common stock over a period commensurate with the expected term. There was $2.2 million of unrecognized compensation costs related to the stock options granted under the Plan as of December 31, 2019 . This cost is expected to be recognized over a weighted average period of 2.3 years. Stock Appreciation Rights During the year ended December 31, 2019 , the Company granted SARs to the Company's executive officers and certain other employees. Each SAR represents the right to receive in cash the excess of the fair market value over the grant price on the exercise date. The SARs vest over various time periods depending upon the grant, but generally vest ratably over 4 years . The Company’s SARs have a maximum term of 10 years from the date of grant. The stock-based compensation expense related to the SARs for the year ended December 31, 2019 was $0.8 million . A summary of SAR activity for the year ended December 31, 2019 is as follows (in thousands, except per share and contractual life amounts): Outstanding Weighted- Aggregate Weighted-Average Remaining Contractual Life (years) Outstanding at December 31, 2018 — $ — $ — Granted 1,449 3.64 2,716 Exercised — — — Forfeited/Expired — — — Outstanding at December 31, 2019 1,449 $ 3.64 $ 2,716 9.4 Vested and exercisable at December 31, 2019 — $ — $ — The weighted-average grant-date fair value of SARs granted during the year ended December 31, 2019 was $2.60 . No SARs were granted in 2018 or 2017 . No SARs vested or were exercised during the years ended December 31, 2019 , 2018 or 2017 . The following weighted average assumptions were utilized in the Black-Scholes valuation model to estimate the fair value of the SARs as of December 31, 2019 : 2019 Dividend yield — Risk-free interest rate 1.69 % Expected life 6.3 years Volatility 46.7 % No dividend yield is used as the Company does not currently, nor historically, pay dividends. The risk-free interest rate is based on actual U.S. Treasury zero-coupon rates for bonds commensurate with the expected term. Given the limited historic exercise behavior, the Company considered the historical exercise behavior of a peer group of stock option awards, given the similarity between the two types of awards. The expected volatility assumption is based on the historical volatility of the Company’s common stock over a period commensurate with the expected term. There was $4.0 million of unrecognized compensation costs related to the SARs granted under the Plan as of December 31, 2019 . This cost is expected to be recognized over a weighted average period of 3.1 years . Restricted Common Shares Eligible employees receive restricted common shares as a portion of their total compensation. The restricted common shares vest over various time periods depending upon the grant, but generally vest from one to four years . The stock-based compensation expense related to restricted common shares for the years ended December 31, 2019 , 2018 and 2017 was $0.8 million , $2.5 million and $3.5 million , respectively. A summary of restricted share activity for the year ended December 31, 2019 is as follows (in thousands, except per share amounts): Outstanding Restricted Common Shares Weighted-Average Grant-Date Fair Value Nonvested Restricted Common shares at December 31, 2018 447 $ 9.13 Granted — — Vested and transferred to unrestricted common stock (158 ) 8.67 Forfeited (122 ) 9.07 Nonvested Restricted Common shares at December 31, 2019 167 $ 9.61 The weighted-average grant-date fair value of restricted common shares granted during the years ended December 31, 2018 and 2017 was $9.37 and $11.00 , respectively. The total fair value of restricted common shares vested during the years ended December 31, 2019 , 2018 and 2017 was $0.6 million , $3.0 million and $4.4 million , respectively. There were $1.0 million of total unrecognized compensation costs related to the restricted common shares as of December 31, 2019 . This cost is expected to be recognized over a weighted average period of 1.7 years . Restricted Share Units Eligible employees receive restricted share units as a portion of their total compensation. The restricted share units vest over various time periods depending upon the grant, but generally vest from one to four years and convert to common stock at the conclusion of the vesting period. The stock-based compensation expense related to restricted share units for the years ended December 31, 2019 and 2018 was $3.1 million and $0.7 million , respectively. A summary of restricted share unit activity for the year ended December 31, 2019 is as follows (in thousands, except per share amounts): Outstanding Restricted Share Units Weighted-Average Grant-Date Fair Value Nonvested Restricted Share Units at December 31, 2018 552 $ 7.74 Granted 1,893 3.62 Vested and transferred to unrestricted share units (204 ) 7.76 Forfeited (109 ) 5.64 Nonvested Restricted Share Units at December 31, 2019 2,132 $ 4.16 The weighted-average grant-date fair value of restricted share units granted during the year ended December 31, 2018 was $7.74 . No restricted share units were granted in 2017 . The total fair value of restricted share units vested during the years ended December 31, 2019 and 2018 was $0.8 million and $0.1 million , respectively. No restricted share units vested during 2017 . There was $6.7 million of total unrecognized compensation costs related to restricted share units as of December 31, 2019 . This cost is expected to be recognized over a weighted average period of 2.6 years . Performance-Based Restricted Stock Units During the years ended December 31, 2019 , 2018 and 2017 , the Company granted performance share units ("PSUs") to the Company's executive officers and certain other employees. The performance-based restricted stock unit awards are subject to vesting based on performance-based and service-based conditions. At the end of the three-year service period, based on the cumulative adjusted earnings per share and the return on invested capital achieved by the Company, the PSUs will vest in a percentage of the target number of shares between 0% and 200% , depending on the extent the performance condition is achieved. Each of the units granted represent the right to receive one share of the Company’s common stock at a specified future date. The stock-based compensation expense (benefit) related to PSUs for the years ended December 31, 2019 , 2018 and 2017 was $0.5 million , $(0.4) million and $0.4 million , respectively. A summary of performance share unit activity for the year ended December 31, 2019 is as follows (in thousands, except per share amounts): Outstanding Weighted- Average Grant- Date Fair Value Nonvested Performance Share Units at December 31, 2018 293 $ 8.72 Granted 594 3.39 Vested — — Forfeited (86 ) 10.41 Nonvested Performance Share Units at December 31, 2019 801 $ 4.58 The weighted-average grant-date fair value of performance share units granted during the years ended December 31, 2018 and 2017 was $7.36 and $11.10 , respectively. No performance share units vested during the years ended December 31, 2019 , 2018 and 2017 . There was $1.5 million of total unrecognized compensation costs related to performance-based restricted stock units as of December 31, 2019 . This cost is expected to be recognized over a weighted average period of 2.2 years . |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Company adopted a 401(k) savings plan effective February 1, 2005, covering all of the Company’s employees upon completion of 30 days of service. Employees may contribute a percentage of eligible compensation on both a before-tax basis and after-tax basis. The Company has the right to make discretionary contributions to the plan. For the years ended December 31, 2019 , 2018 and 2017 , total costs incurred from the Company’s contributions to the 401(k) plan were $1.3 million , $0.0 million , and $1.0 million |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Agreements and Services with Related Parties The Company provides print procurement services to Arthur J. Gallagher & Company. J. Patrick Gallagher, Jr. is the Chairman, President and Chief Executive Officer of Arthur J. Gallagher & Company and has a direct ownership interest in Arthur J. Gallagher & Company. J. Patrick Gallagher, Jr. was a member of our Board of Directors until November 1, 2019, when he retired from our Board. Effective November 1, 2019, he is no longer a member of the Board of Directors. The total amount billed for print procurement services during the years ended December 31, 2019 , 2018 and 2017 was $1.8 million , $1.6 million and $1.9 million , respectively. Additionally, Arthur J. Gallagher & Company provides insurance brokerage and risk management services to the Company. As consideration for these services, Arthur J. Gallagher & Company billed the Company $0.3 million , $0.1 million and $0.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The amounts receivable from Arthur J. Gallagher & Company were $0.2 million and $0.3 million as of December 31, 2019 and 2018 , respectively. In the fourth quarter of 2017, the Company began providing marketing execution services to Enova International, Inc. David Fisher, a member of the Company’s Board of Directors, is the Chairman and Chief Executive Officer of Enova International, Inc. and has a direct ownership interest in Enova International, Inc. The total amount billed for such procurement services during the years ended December 31, 2019 , 2018 and 2017 was $16.1 million , $10.1 million and $0.1 million respectively. The amounts receivable from Enova, Inc. were $4.6 million and $2.0 million as of December 31, 2019 and 2018 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
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 (“CODM”), manages the segments, evaluates financial results, and makes key operating decisions. The Company is organized and managed by the CODM as three operating segments: North America, EMEA, and LATAM. The North America segment includes operations in the United States and Canada; the EMEA segment includes operations in the United Kingdom, continental Europe, the Middle East, Africa, and Asia; and the LATAM segment includes operations in Mexico, Central America, and South America. Other consists of intersegment eliminations, shared service activities, and corporate expenses which are not allocated to the operating segments as management does not consider them in evaluating segment performance. Management evaluates the performance of its operating segments based on revenue and Adjusted EBITDA. The accounting policies of each of the operating segments are the same as those described in the summary of significant accounting policies in Note 2 , Summary of Significant Accounting Policies , and the product offerings within each reportable segment are consistent as outlined in Note 1 , Description of the Business . Management does not evaluate the performance of its operating segments using asset measures. The identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment and include cash, accounts receivable, inventory, goodwill and intangible assets. Shared service assets are primarily comprised of short-term investments, capitalized internal-use software and net property and equipment for the corporate headquarters. The Company reports on a segment basis rather than by geography as the North America segment encompasses the Company’s country of domicile (United States) and Canada, of which revenue is principally generated within the United States. North America comprised 71.3% and 69.3% of the Company’s revenue for the years ended December 31, 2019 and 2018 , respectively. Canadian operations were determined to be immaterial given the revenue generated from such operations as a percentage of total North America revenue was less than 2% for the year ended December 31, 2019 and 2018 , as well as Canadian operations being substantially interconnected and integrated with U.S. operations. Accordingly, the Company deemed it unnecessary to break out revenue geographically thus leading to the disclosure of revenue at the segment level. Additionally, the Company does not disaggregate revenue by product and service revenue as service revenue has not been material to the Company's overall revenue to date. The table below presents financial information for the Company's reportable segments and Other for the fiscal years noted (in thousands): North America EMEA LATAM Other Total Fiscal 2019: Revenue from third parties $ 826,355 $ 250,719 $ 80,760 $ — $ 1,157,834 Revenue from other segments 4,463 9,302 22 (13,787 ) — Total revenue $ 830,818 $ 260,021 $ 80,782 $ (13,787 ) $ 1,157,834 Adjusted EBITDA $ 85,662 $ 12,051 $ 1,943 $ (50,611 ) $ 49,045 Capital expenditures $ 10,525 $ 2,815 $ 38 $ — $ 13,378 Fiscal 2018: Revenue from third parties $ 777,202 $ 260,729 $ 83,175 $ — $ 1,121,106 Revenue from other segments 3,200 9,500 217 (12,917 ) — Total revenue $ 780,402 $ 270,229 $ 83,392 $ (12,917 ) $ 1,121,106 Adjusted EBITDA $ 61,250 $ 6,355 $ 3,082 $ (43,372 ) $ 27,315 Capital expenditures $ 8,649 $ 2,609 $ 5 $ — $ 11,263 Fiscal 2017: Revenue from third parties $ 780,520 $ 265,669 $ 92,181 $ — $ 1,138,370 Revenue from other segments 5,469 13,444 1,693 (20,606 ) — Total revenue $ 785,989 $ 279,113 $ 93,874 $ (20,606 ) $ 1,138,370 Adjusted EBITDA $ 73,790 $ 15,293 $ 4,278 $ (35,867 ) $ 57,494 Capital expenditures $ 8,610 $ 3,873 $ — $ — $ 12,483 The table below reconciles Adjusted EBITDA to Net (loss) income in the Company's consolidated statement of operations (in thousands): Year Ended December 31, 2019 2018 2017 Adjusted EBITDA $ 49,045 $ 27,315 $ 57,494 Depreciation and amortization (12,328 ) (12,988 ) (13,390 ) Stock-based compensation - equity classified awards (5,533 ) (5,302 ) (6,820 ) Stock-based compensation - SARs market-to-market (748 ) — — Restructuring charges (15,918 ) (6,031 ) — Executive search fees (80 ) (235 ) (454 ) Professional fees related to control remediation (1,130 ) (2,430 ) — Sales and use tax audit (25 ) (113 ) (203 ) Other professional fees (2,241 ) (507 ) — Goodwill impairment — (46,319 ) — Intangible and long-lived asset impairment — (18,121 ) — Senior leadership transition and other employee-related costs — (1,410 ) — Obsolete retail inventory — (950 ) — Professional fees related to ASC 606 implementation — (1,092 ) (829 ) Business development realignment — — (715 ) Change in fair value of contingent consideration — — (677 ) Czech currency impact on procurement margin — — (860 ) Income (loss) from operations 11,042 (68,183 ) 33,546 Interest income 366 218 97 Interest expense (14,097 ) (7,749 ) (4,729 ) Other, net (3,686 ) (1,616 ) (1,788 ) (Loss) income before income taxes (6,375 ) (77,330 ) 27,126 Provision (benefit) for income tax (3,700 ) 647 (11,257 ) Net (loss) income $ (10,075 ) $ (76,683 ) $ 15,869 The table below presents total assets for the Company's reportable segments and Other (in thousands): As of December 31, 2019 2018 North America $ 424,775 $ 398,432 EMEA 140,013 160,228 LATAM 46,822 43,031 Other 17,673 20,038 Total assets $ 629,283 $ 621,729 The long-lived assets in the table below consist of net property and equipment (in thousands): As of December 31, 2019 2018 North America $ 2,713 $ 11,078 EMEA 12,675 51,131 LATAM 463 598 Other 21,373 20,126 Total long-lived assets $ 37,224 $ 82,933 Refer to Note 8 , Property and Equipment for additional discussion over the change in long-lived assets from 2019 to 2018 . |
Quarterly Selected Financial In
Quarterly Selected Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Selected Financial Information (Unaudited) | Quarterly Selected Financial Information (Unaudited) The tables below include quarterly selected financial information for 2019 and 2018 (in thousands, except per share amounts): Year Ended December 31, 2019 First Second Third Fourth Revenue $ 267,211 $ 283,861 $ 287,688 $ 319,074 Gross profit (1) 62,010 68,398 69,495 62,106 (Loss) income from operations (371 ) 4,063 3,762 3,588 Net loss $ (2,044 ) $ (508 ) $ (1,062 ) $ (6,461 ) Net loss per share: Basic and diluted $ (0.04 ) $ (0.01 ) $ (0.02 ) $ (0.12 ) (1) During the fourth quarter 2019, the Company reclassified $13.8 million into cost of goods sold, of which $9.4 million of these costs were recorded in SG&A over the first three quarters of the year. The reclassification had no impact on the annual 2019 consolidated financial statements and similar amounts in prior years were not material. Year Ended December 31, 2018 First Second Third Fourth Revenue $ 274,297 $ 281,988 $ 270,844 $ 293,977 Gross profit 65,839 64,941 63,967 59,066 Income (loss) from operations (2) 984 2,377 (43,312 ) (28,232 ) Net loss $ (1,874 ) $ (299 ) $ (45,120 ) $ (29,390 ) Net loss per share: Basic and diluted $ (0.03 ) $ (0.01 ) $ (0.87 ) $ (0.57 ) (2) In the third quarter of 2018, the Company recognized a $27.9 million goodwill impairment charge, $13.8 million intangible asset impairment charge and $3.0 million long-lived asset impairment charge. In the fourth quarter of 2018, the Company recognized an additional $18.4 million goodwill impairment charge and a $1.3 million contract asset impairment charge related to costs to fulfill a contract that were deemed to be non-recoverable in North America. Refer to Note 4 , Revenue Recognition , Note 5 , Goodwill , Note 6 , Other Intangible Assets and Note 8 , Property and Equipment for further discussion. |
Revision of Prior Period Financ
Revision of Prior Period Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements During the period ended December 31, 2019, the Company identified errors that affect the current and prior years. During the current period, the Company enhanced its internal controls in connection with its ongoing remediation efforts related to the material weakness. As a result of the enhanced internal controls, certain adjustments were identified related to prior periods. The remaining adjustments related to a proposed sales and use tax liability from the State of Illinois, which impacted prior years. The Company has evaluated the effects of these corrections on its historical financial statements and concluded that none of the periods in the previously issued financial statements are materially misstated. Nonetheless, because correcting for the cumulative effect of the historical errors in the current period would have been material to the current period, the Company has revised its historical consolidated financial statements for the annual periods ended December 31, 2017 and December 31, 2018 and interim periods ended March 31, 2018, June 30, 2018, September 30, 2018, March 31, 2019, June 30, 2019, and September 30, 2019 to reflect the correction of this immaterial error in this Form 10-K. The following schedules reconcile the amounts as originally reported in the applicable prior period financial statements to the corresponding revised amounts. Reconciliation of revised financial statement amounts Revised consolidated statements of operations amounts (in thousands, except per share data) Year Ended December 31, 2018 As Reported Adjustments As Revised Revenue $ 1,121,551 $ (445 ) $ 1,121,106 Cost of goods sold 866,453 840 867,293 Gross profit 255,098 (1,285 ) 253,813 Selling, general and administrative expenses 239,124 (587 ) 238,537 Loss from operations (67,485 ) (698 ) (68,183 ) Loss before income taxes (76,632 ) (698 ) (77,330 ) Income tax benefit (461 ) (186 ) (647 ) Net loss (76,171 ) (512 ) (76,683 ) Basic loss per share (1.46 ) (0.01 ) (1.47 ) Diluted loss per share (1.46 ) (0.01 ) (1.47 ) Comprehensive loss (81,251 ) (514 ) (81,765 ) Adjusted EBITDA 27,900 (585 ) 27,315 Year Ended December 31, 2017 As Reported Adjustments As Revised Revenue $ 1,138,361 $ 9 $ 1,138,370 Cost of goods sold 862,903 (41 ) 862,862 Gross profit 275,458 50 275,508 Selling, general and administrative expenses 227,253 642 227,895 Income from operations 34,138 (592 ) 33,546 Income before income taxes 27,718 (592 ) 27,126 Income tax expense 11,288 (31 ) 11,257 Net income 16,430 (561 ) 15,869 Basic earnings per share 0.31 (0.02 ) 0.29 Diluted earnings per share 0.30 (0.01 ) 0.29 Comprehensive income 18,150 (561 ) 17,589 Adjusted EBITDA 57,883 (389 ) 57,494 Revised consolidated balance sheet amounts (in thousands) As of December 31, 2018 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 193,253 $ (67 ) $ 193,186 Unbilled revenue 46,474 (222 ) 46,252 Inventories 56,001 (286 ) 55,715 Prepaid expenses 16,982 (726 ) 16,256 Other current assets 10,379 354 10,733 Total current assets 373,586 (947 ) 372,639 Total assets 622,676 (947 ) 621,729 Accounts payable 158,449 (421 ) 158,028 Accrued expenses 35,474 224 35,698 Other current liabilities 26,231 1,959 28,190 Total current liabilities 380,504 1,762 382,266 Deferred income taxes 8,178 (573 ) 7,605 Total liabilities 439,585 1,189 440,774 Accumulated other comprehensive loss (24,309 ) (2 ) (24,311 ) Retained earnings 48,905 (2,134 ) 46,771 Total stockholders' equity 183,091 (2,136 ) 180,955 Total liabilities and stockholders' equity 622,676 (947 ) 621,729 As of December 31, 2017 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 205,386 $ 62 $ 205,448 Other current assets 37,865 335 38,200 Total current assets 383,088 397 383,485 Total assets 649,638 397 650,035 Accounts payable 141,164 (56 ) 141,108 Accrued expenses 34,391 635 35,026 Other current liabilities 24,078 1,849 25,927 Total current liabilities 217,253 2,428 219,681 Deferred income taxes 12,043 (409 ) 11,634 Total liabilities 365,093 2,019 367,112 Retained earnings 124,442 (1,622 ) 122,820 Total stockholders' equity 284,545 (1,622 ) 282,923 Total liabilities and stockholders' equity 649,638 397 650,035 Revised consolidated statements of cash flows amounts (in thousands) Year Ended December 31, 2018 As Reported Adjustments As Revised Cash flows from operating activities: Net loss $ (76,171 ) $ (512 ) $ (76,683 ) Deferred income taxes (4,441 ) (163 ) (4,604 ) Accounts receivable and unbilled revenue 4,112 358 4,470 Inventories (16,325 ) 286 (16,039 ) Prepaid expenses and other assets 1,432 688 2,120 Accounts payable 21,959 (374 ) 21,585 Accrued expenses and other liabilities 5,473 (283 ) 5,190 Net cash provided by operating activities 23,058 — 23,058 Year Ended December 31, 2017 As Reported Adjustments As Revised Cash flows from operating activities: Net income $ 16,430 $ (561 ) $ 15,869 Deferred income taxes 4,072 1 4,073 Accounts receivable and unbilled revenue (41,877 ) 6 (41,871 ) Prepaid expenses and other assets (13,547 ) (335 ) (13,882 ) Accounts payable 18,152 (56 ) 18,096 Accrued expenses and other liabilities 11,162 945 12,107 Net cash provided by operating activities 11,698 — 11,698 Reconciliation of revised quarterly financial statement amounts (unaudited) Revised consolidated statements of operations amounts (unaudited) (in thousands, except per share data) Three Months Ended March 31, 2019 As Reported Adjustments As Revised Revenue $ 267,239 $ (28 ) $ 267,211 Cost of goods sold 206,043 (842 ) 205,201 Gross profit 61,196 814 62,010 Selling, general and administrative expenses 55,805 25 55,830 Loss from operations (1,160 ) 789 (371 ) Other, net (740 ) 300 (440 ) Total other expense (3,387 ) 300 (3,087 ) Loss before income taxes (4,547 ) 1,089 (3,458 ) Income tax benefit (2,085 ) 671 (1,414 ) Net loss (2,462 ) 418 (2,044 ) Basic loss per share (0.05 ) 0.01 (0.04 ) Diluted loss per share (0.05 ) 0.01 (0.04 ) Comprehensive loss (1,715 ) 418 (1,297 ) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 As Reported Adjustments As Revised As Reported Adjustments As Revised Revenue $ 284,053 $ (192 ) $ 283,861 $ 551,291 $ (219 ) $ 551,072 Cost of goods sold 214,986 477 215,463 421,029 (365 ) 420,664 Gross profit 69,067 (669 ) 68,398 130,262 146 130,408 Selling, general and administrative expenses 58,661 (1,257 ) 57,404 114,466 (1,231 ) 113,235 Income from operations 3,475 588 4,063 2,315 1,377 3,692 Other, net 279 — 279 (460 ) 299 (161 ) Total other expense (2,103 ) — (2,103 ) (5,490 ) 299 (5,191 ) Income (loss) before income taxes 1,372 588 1,960 (3,175 ) 1,676 (1,499 ) Income tax expense 2,541 (73 ) 2,468 456 597 1,053 Net loss (1,169 ) 661 (508 ) (3,631 ) 1,079 (2,552 ) Basic loss per share (0.02 ) 0.01 (0.01 ) (0.07 ) 0.02 (0.05 ) Diluted loss per share (0.02 ) 0.01 (0.01 ) (0.07 ) 0.02 (0.05 ) Comprehensive loss (916 ) 661 (255 ) (2,631 ) 1,079 (1,552 ) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 As Reported Adjustments As Revised As Reported Adjustments As Revised Revenue $ 286,525 $ 1,163 $ 287,688 $ 837,816 $ 944 $ 838,760 Cost of goods sold 218,356 (163 ) 218,193 639,385 (528 ) 638,857 Gross profit 68,169 1,326 69,495 198,431 1,472 199,903 Selling, general and administrative expenses 59,938 (187 ) 59,751 174,404 (1,418 ) 172,986 Restructuring and other charges 3,055 (163 ) 2,892 10,687 (163 ) 10,524 Income from operations 2,086 1,676 3,762 4,401 3,053 7,454 Other, net (1,736 ) 1 (1,735 ) (2,196 ) 300 (1,896 ) Total other expense (6,075 ) 1 (6,074 ) (11,565 ) 300 (11,265 ) Loss before income taxes (3,989 ) 1,677 (2,312 ) (7,164 ) 3,353 (3,811 ) Income tax benefit (1,815 ) 565 (1,250 ) (1,359 ) 1,162 (197 ) Net loss (2,174 ) 1,112 (1,062 ) (5,805 ) 2,191 (3,614 ) Basic loss per share (0.04 ) 0.02 (0.02 ) (0.11 ) 0.04 (0.07 ) Diluted loss per share (0.04 ) 0.02 (0.02 ) (0.11 ) 0.04 (0.07 ) Comprehensive loss (3,910 ) 1,112 (2,798 ) (6,541 ) 2,191 (4,350 ) Three Months Ended March 31, 2018 As Reported Adjustments As Revised Revenue $ 274,539 $ (242 ) $ 274,297 Cost of goods sold 208,472 (14 ) 208,458 Gross profit 66,067 (228 ) 65,839 Selling, general and administrative expenses 61,167 29 61,196 Income from operations 1,241 (257 ) 984 Loss before income taxes (1,111 ) (257 ) (1,368 ) Income tax expense 573 (67 ) 506 Net loss (1,684 ) (190 ) (1,874 ) Basic loss per share (0.03 ) — (0.03 ) Diluted loss per share (0.03 ) — (0.03 ) Comprehensive income 1,680 (190 ) 1,490 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Adjustments As Revised As Reported Adjustments As Revised Revenue $ 281,967 $ 21 $ 281,988 $ 556,506 $ (221 ) $ 556,285 Cost of goods sold 217,096 (49 ) 217,047 425,568 (63 ) 425,505 Gross profit 64,871 70 64,941 130,938 (158 ) 130,780 Selling, general and administrative expenses 59,002 48 59,050 120,169 77 120,246 Income from operations 2,355 22 2,377 3,596 (235 ) 3,361 Income (loss) before income taxes 304 22 326 (807 ) (235 ) (1,042 ) Income tax expense 603 22 625 1,176 (45 ) 1,131 Net loss (299 ) — (299 ) (1,983 ) (190 ) (2,173 ) Basic loss per share (0.01 ) — (0.01 ) (0.04 ) — (0.04 ) Diluted loss per share (0.01 ) — (0.01 ) (0.04 ) — (0.04 ) Comprehensive (loss) income (5,906 ) — (5,906 ) (4,226 ) (190 ) (4,416 ) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As Reported Adjustments As Revised As Reported Adjustments As Revised Revenue $ 270,850 $ (6 ) $ 270,844 $ 827,356 $ (227 ) $ 827,129 Cost of goods sold 206,808 69 206,877 632,376 6 632,382 Gross profit 64,042 (75 ) 63,967 194,980 (233 ) 194,747 Selling, general and administrative expenses 56,142 25 56,167 176,312 101 176,413 Loss from operations (43,212 ) (100 ) (43,312 ) (39,617 ) (334 ) (39,951 ) Loss before income taxes (45,263 ) (100 ) (45,363 ) (46,070 ) (334 ) (46,404 ) Income tax (benefit) expense (326 ) 83 (243 ) 851 38 889 Net loss (44,937 ) (183 ) (45,120 ) (46,921 ) (372 ) (47,293 ) Basic loss per share (0.87 ) — (0.87 ) (0.90 ) — (0.90 ) Diluted loss per share (0.87 ) — (0.87 ) (0.90 ) — (0.90 ) Comprehensive loss (46,646 ) (183 ) (46,829 ) (50,872 ) (372 ) (51,244 ) Three Months Ended December 30, 2018 As Reported Adjustments As Revised Revenue $ 294,195 $ (218 ) $ 293,977 Cost of goods sold 234,077 834 234,911 Gross profit 60,118 (1,052 ) 59,066 Selling, general and administrative expenses 62,812 (688 ) 62,124 Loss from operations (27,868 ) (364 ) (28,232 ) Loss before income taxes (30,562 ) (364 ) (30,926 ) Income tax benefit (1,312 ) (224 ) (1,536 ) Net loss (29,250 ) (140 ) (29,390 ) Basic loss per share (0.56 ) (0.01 ) (0.57 ) Diluted loss per share (0.56 ) (0.01 ) (0.57 ) Comprehensive loss (30,379 ) (140 ) (30,519 ) Revised consolidated balance sheet amounts (unaudited) (in thousands) As of March 31, 2019 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 184,359 $ (82 ) $ 184,277 Unbilled revenue 51,166 (226 ) 50,940 Inventories 46,927 (303 ) 46,624 Prepaid expenses 14,245 (727 ) 13,518 Other current assets 36,188 206 36,394 Total current assets 358,736 (1,132 ) 357,604 Total assets 600,120 (1,132 ) 598,988 Accounts payable 149,813 (1,281 ) 148,532 Accrued expenses 31,339 252 31,591 Other current liabilities 31,493 2,202 33,695 Total current liabilities 372,513 1,173 373,686 Deferred income taxes 8,268 (573 ) 7,695 Total liabilities 417,811 600 418,411 Accumulated other comprehensive loss (23,562 ) (37 ) (23,599 ) Retained earnings 46,602 (1,695 ) 44,907 Total stockholders' equity 182,309 (1,732 ) 180,577 Total liabilities and stockholders' equity 600,120 (1,132 ) 598,988 As of June 30, 2019 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 188,687 $ (73 ) $ 188,614 Unbilled revenue 60,911 (357 ) 60,554 Inventories 51,553 (381 ) 51,172 Prepaid expenses 15,132 (726 ) 14,406 Other current assets 28,707 208 28,915 Total current assets 378,989 (1,329 ) 377,660 Total assets 631,596 (1,329 ) 630,267 Accounts payable 140,492 (901 ) 139,591 Deferred revenue 21,532 (35 ) 21,497 Accrued expenses 37,446 342 37,788 Other current liabilities 34,877 899 35,776 Total current liabilities 392,022 305 392,327 Deferred income taxes 8,295 (573 ) 7,722 Total liabilities 448,927 (268 ) 448,659 Accumulated other comprehensive loss (23,309 ) (28 ) (23,337 ) Retained earnings 45,433 (1,033 ) 44,400 Total stockholders' equity 182,669 (1,061 ) 181,608 Total liabilities and stockholders' equity 631,596 (1,329 ) 630,267 As of September 30, 2019 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 190,992 $ 153 $ 191,145 Unbilled revenue 65,584 (214 ) 65,370 Inventories 64,136 (140 ) 63,996 Prepaid expenses 13,973 (726 ) 13,247 Other current assets 13,271 208 13,479 Total current assets 425,761 (719 ) 425,042 Property and equipment, net 36,714 123 36,837 Total assets 680,067 (596 ) 679,471 Accounts payable 169,173 (750 ) 168,423 Deferred revenue 18,526 (162 ) 18,364 Accrued expenses 44,096 (163 ) 43,933 Other current liabilities 32,325 1,014 33,339 Total current liabilities 274,955 (61 ) 274,894 Deferred income taxes 8,257 (573 ) 7,684 Total liabilities 499,612 (634 ) 498,978 Accumulated other comprehensive loss (25,045 ) (38 ) (25,083 ) Retained earnings 43,259 76 43,335 Total stockholders' equity 180,455 38 180,493 Total liabilities and stockholders' equity 680,067 (596 ) 679,471 As of March 31, 2018 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 183,012 $ 72 $ 183,084 Unbilled revenue 47,685 (243 ) 47,442 Other current assets 33,716 393 34,109 Total current assets 366,296 222 366,518 Total assets 633,973 222 634,195 Accounts payable 120,260 (63 ) 120,197 Accrued expenses 40,081 636 40,717 Other current liabilities 24,073 1,869 25,942 Total current liabilities 215,938 2,442 218,380 Deferred income taxes 12,208 (408 ) 11,800 Total liabilities 354,319 2,034 356,353 Retained earnings 123,393 (1,812 ) 121,581 Total stockholders' equity 279,654 (1,812 ) 277,842 Total liabilities and stockholders' equity 633,973 222 634,195 As of June 30, 2018 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 185,222 $ 68 $ 185,290 Unbilled revenue 47,906 (228 ) 47,678 Other current assets 26,296 360 26,656 Total current assets 349,055 200 349,255 Total assets 644,417 200 644,617 Accounts payable 122,452 (116 ) 122,336 Accrued expenses 34,386 636 35,022 Other current liabilities 22,770 1,902 24,672 Total current liabilities 336,168 2,422 338,590 Deferred income taxes 12,236 (408 ) 11,828 Total liabilities 386,626 2,014 388,640 Retained earnings 123,094 (1,814 ) 121,280 Total stockholders' equity 257,791 (1,814 ) 255,977 Total liabilities and stockholders' equity 644,417 200 644,617 As of September 30, 2018 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 188,744 $ (139 ) $ 188,605 Unbilled revenue 59,961 (227 ) 59,734 Other current assets 43,005 318 43,323 Total current assets 397,963 (48 ) 397,915 Total assets 661,783 (48 ) 661,735 Accounts payable 161,389 (249 ) 161,140 Accrued expenses 35,539 636 36,175 Other current liabilities 21,535 1,969 23,504 Total current liabilities 249,167 2,356 251,523 Deferred income taxes 12,143 (408 ) 11,735 Total liabilities 449,887 1,948 451,835 Retained earnings 78,156 (1,996 ) 76,160 Total stockholders' equity 211,896 (1,996 ) 209,900 Total liabilities and stockholders' equity 661,783 (48 ) 661,735 Consolidated statements of cash flows amounts (unaudited) (in thousands) Three Months Ended March 31, 2019 As Reported Adjustments As Revised Cash flows from operating activities: Net loss $ (2,462 ) $ 418 $ (2,044 ) Accounts receivable and unbilled revenue 3,924 4 3,928 Inventories 9,149 16 9,165 Prepaid expenses and other assets 116 158 274 Accounts payable (8,351 ) (856 ) (9,207 ) Accrued expenses and other liabilities (870 ) 260 (610 ) Net cash provided by operating activities 5,492 — 5,492 Six Months Ended June 30, 2019 As Reported Adjustments As Revised Cash flows from operating activities: Net loss $ (3,631 ) $ 1,079 $ (2,552 ) Accounts receivable and unbilled revenue (10,225 ) 126 (10,099 ) Inventories 4,488 94 4,582 Prepaid expenses and other assets (4,318 ) 155 (4,163 ) Accounts payable (17,670 ) (476 ) (18,146 ) Accrued expenses and other liabilities 23,529 (978 ) 22,551 Net cash provided by operating activities 1,289 — 1,289 Nine Months Ended September 30, 2019 As Reported Adjustments As Revised Cash flows from operating activities: Net loss $ (5,805 ) $ 2,191 $ (3,614 ) Accounts receivable and unbilled revenue (21,245 ) (243 ) (21,488 ) Inventory (8,767 ) (146 ) (8,913 ) Prepaid expenses and other assets (29,141 ) 156 (28,985 ) Accounts payable 12,403 (325 ) 12,078 Accrued expenses and other liabilities 25,378 (1,510 ) 23,868 Net cash used in operating activities (9,778 ) 123 (9,655 ) Cash flows from investing activities: Purchases of property and equipment (10,012 ) (123 ) (10,135 ) Net cash used in investing activities (10,402 ) (123 ) (10,525 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The consolidated financial statements include the accounts of InnerWorkings, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
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 generally accepted accounting principles in the United States ("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 can differ from those estimates. |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements |
Foreign Currency Translation and Highly Inflationary Accounting | 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 income (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. The net realized gains (losses) on foreign currency transactions were $(2.4) million , $(1.1) million and $(1.4) million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Highly Inflationary Accounting |
Fair Value Measurements | Fair Value Measurements 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 fair value of revolving credit facilities and long-term debt facilities are determined using current market yields. Fair value accounting requires bifurcation of embedded derivative instruments such as interest rate reset features in debt instruments, and measurement of their fair value for accounting purposes. In determining the appropriate fair value for embedded derivatives, the Company uses a 'with and without' valuation model. Additionally, fair value accounting requires liability-classified awards, such as warrant liabilities, to be measured at fair value for accounting purposes. The fair value of freestanding derivative instruments, such as warrant liabilities, are valued using the Black-Scholes-Merton option pricing model. Once determined, derivative liabilities and warrant liabilities are adjusted to reflect fair value at each reporting period end, with any increase or decrease in the fair value being recorded within other expense as an adjustment to fair value of derivatives. |
Deferred Financing Fees and Debt Discounts | Deferred Financing Fees and Debt Discounts Deferred financing fees represent third-party debt issuance costs associated with the related debt facility. Deferred financing fees and related derivative and warrant features associated with the Company’s long-term debt agreement are treated as a discount on the long-term debt and amortized using the effective interest rate method. Derivative features associated with the Company’s revolving credit agreement are treated as a discount on the revolving credit facility and amortized using the straight-line method. Deferred financing fees related to the Company's revolving credit facility are capitalized and reflected as deferred financing costs within other non-current assets and are amortized over the term of the revolving credit facility. Debt discounts on the Company’s revolving credit facility and long-term debt are reflected as a direct deduction from the carrying amount of the long-term portion of the related debt liability. |
Revenue Recognition | Revenue Recognition In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers , the Company generally reports revenue on a gross basis because the Company typically controls the goods or services before transferring to the customer. Under these arrangements, the Company is primarily responsible for the fulfillment, including the acceptability, of the marketing materials and other products or services. In addition, the Company has reasonable discretion in establishing the price, and in some transactions, the Company also has inventory risk and is involved in the determination of the nature or characteristics of the marketing materials and products. In some arrangements, the Company is not primarily responsible for fulfilling the goods or services. In arrangements of this nature, the Company does not control the goods or services before they are transferred to the customer and such revenue is reported on a net basis. The Company records taxes collected from customers and remitted to governmental authorities on a net basis. The Company primarily generates revenue 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. The Company includes any fixed charges per its 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. Revenue is measured based on consideration specified in a contract with a customer. Contracts may include variable consideration (for example, customer incentives such as rebates), and to the extent that variable consideration is not constrained, the Company includes the expected amount within the total transaction price and updates its 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 its products to customers, at which time the Company recognizes revenue. Payment is typically due from the customer at this time or shortly thereafter. 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 consolidated statements of operations. 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, including stand-alone creative and other services, may be recognized over time but the difference between recognizing that revenue over time versus at a point in time when the service is completed and accepted by the customer is not material to the Company’s overall revenue to date. |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold includes product costs and warehousing costs. Product costs consist of costs to procure inventory for customers, creative design costs to customize products for customers, and shipping and handling costs. Shipping and handling include both internal and third-party fulfillment and shipping costs. Warehousing costs consist of rent and overhead costs related to assembling and storing products in warehouse facilities. Certain creative design costs and warehousing costs consist of personnel costs for employees within production and distribution of branded products. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. |
Accounts Receivable | Accounts Receivable Accounts receivable are uncollateralized customer obligations due under normal trade terms. Payment terms with customers are generally 30 to 90 days from the invoice date. Accounts receivable are stated at the amount billed to the customer, less an estimate for potential bad debts. Interest is not generally accrued on outstanding balances. The carrying amount of accounts receivable is reduced by an allowance that reflects management’s best estimate of the amounts that will not be collected. The Company estimates the collectability of its accounts receivable based on a combination of factors including, but not limited to, customer credit ratings and historical experience. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company (e.g., bankruptcy filings or substantial downgrading of credit ratings), the Company provides allowances for bad debts against amounts due to reduce the net recognized receivable to the amount it reasonably believes will be collected. Aged receivables are reviewed on a regular basis and uncollectible accounts are written off when all reasonable collection efforts have been exhausted. |
Unbilled Revenue and Accrued Accounts Payable | Unbilled Revenue and Accrued Accounts Payable Unbilled revenue and accrued accounts payable include estimated shipments or deliveries that have been made to customers for which the related accounts receivable and accounts payable have not yet been recorded. The Company estimates these amounts using assumptions such as projected margin and shipping probabilities and results in impacts to revenue, unbilled revenue, accrued accounts payable, and costs of goods sold. |
Other Receivables | Other Receivables Other receivables include product receivables for consumer packaged goods clients, where the Company's procurement of products on behalf of the customer is considered to be a pass-through activity. |
Inventories | Inventories |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives, by asset class, are as follows: Computer equipment 3 years Software, including internal-use software 1 to 5 years Office equipment 5 years Furniture and fixtures 7 years Leasehold improvements are depreciated using the straight-line method over the shorter of their estimated useful lives or the terms of the related leases. The Company reviews long-lived assets, including amortizable intangible assets, for realizability on an ongoing basis. Changes in depreciation, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change. The Company also reviews for impairment when conditions exist that indicate the carrying amount of the asset group may not be fully recoverable. In those circumstances, the Company performs undiscounted operating cash flow analyses to determine if an impairment exists. When testing for asset impairment, the Company groups assets and liabilities at the lowest level for which cash flows are separately identifiable. Any impairment loss is calculated as the excess of the asset’s carrying value over its estimated fair value. Fair value is estimated based on the discounted cash flows for the asset group over the remaining useful life or based on the expected cash proceeds for the asset less costs of disposal. |
Internal-Use Software | Internal-Use Software In accordance with ASC 350-40, Intangibles—Goodwill and Other, Internal-Use Software, certain costs incurred in the planning and evaluation stage of internal-use computer software are expensed as incurred. Certain costs incurred during the application development stage are capitalized and included in property and equipment. Capitalized internal-use software costs are depreciated over the expected economic useful life of three to six years |
Goodwill | Goodwill 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. Absent any interim indicators of impairment, the Company tests for goodwill impairment as of the first day of its fourth fiscal quarter of each year. Under ASC 350, an entity is permitted to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the quantitative test is required due to the determination the fair value of a reporting unit is more likely than not less than its carrying amount, the fair value for each reporting unit is compared to its book value including goodwill. In the case that the fair value is less than the book value of the goodwill, the difference is recognized as an impairment. The fair value estimates used in the goodwill impairment analysis require significant judgment. The fair value estimates are based on assumptions management believes to be reasonable, but that are inherently uncertain, including estimates of future revenue and operating margins and assumptions about the overall economic climate and the competitive environment for the business. The fair value determination of the North America reporting unit primarily relies on management judgments around timing of generating revenue from recent new customer wins as well as timing of benefits expected to be received from the significant restructuring actions currently underway (see Note 7 , Restructuring Activities and Charges ). If assumptions surrounding either of these factors change, then a future impairment charge may occur. At the date of the most recent step one test, if the fair value of a reporting unit exceeds the carrying value by less than 30 percent , the Company will include enhanced goodwill disclosures. |
Other Intangible Assets | Other Intangible Assets In accordance with ASC 350 , the Company amortizes its intangible assets with finite lives over their respective estimated useful lives and reviews for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that they may be impaired. 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-competition agreements, trade names and patents. The Company’s customer lists, which have an estimated weighted-average useful life of approximately 14 years, are being amortized using the economic life method. The Company’s non-competition agreements, trade names and patents are being amortized on the straight-line basis over their estimated weighted-average useful lives of approximately 4 years, 13 years and 9 years, respectively. |
Leases | Leases The Company leases office space, warehouses, automobiles, and equipment. The Company determines whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and direct the use of identified office space, warehouse or equipment for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all the economic benefits from the use of the office space, warehouse and equipment. The leases are recorded as right-of-use ("ROU") assets and lease liabilities for leases with terms greater than 12 months. The Company’s leases generally have terms of 1 - 10 years , with certain leases including renewal options to extend the leases for additional periods at the Company’s discretion. Generally, the lease term is the minimum of the noncancelable period of the lease, as the Company is not reasonably certain to exercise renewal options. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. Tenant allowances used to fund leasehold improvements are recognized when earned and reduce the right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, the Company estimates incremental secured borrowing rates corresponding to the maturities of the leases. The Company estimates this rate based on prevailing financial market conditions as rates are not implicitly stated in most leases. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leased assets are presented net of accumulated amortization. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or liabilities; instead, these are expensed as incurred and recorded as variable lease expense. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes , under which deferred tax assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying values of assets and liabilities and their respective tax bases. A valuation allowance is established to reduce the carrying value of deferred tax assets if it is considered more likely than not that such assets will not be realized. Any change in the valuation allowance would be charged to income in the period such determination was made. The Company recognizes the tax benefit from an uncertain tax position only if it is “more likely than not” the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. There was nominal interest and penalties related to unrecognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 . Based on the Company’s evaluation, it was concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. Examinations by tax authorities have been completed through 2014 in the Czech Republic, United Kingdom, and United States, and through 2015 in France. On December 22, 2017, the U.S. government enacted comprehensive Federal tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “Act”). The Act makes changes to the corporate tax rate, business-related deductions and taxation of foreign earnings, among others, that will generally be effective for taxable years beginning after December 31, 2017. The Act requires a U.S. shareholder of a foreign corporation to include global intangible low-taxed (“GILTI”) in taxable income. The accounting policy of the Company is to record any tax on GILTI in the provision for income taxes in the year it is incurred. |
Advertising | Advertising Costs of advertising, which are expensed as incurred by the Company, were $0.6 million , $1.4 million and $1.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, and are included in selling, general and administrative expenses in the consolidated statement of operations. |
Comprehensive (Loss) Income | Comprehensive (Loss) Income Accumulated comprehensive loss consists solely of foreign currency translation adjustments. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation awards 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 and stock appreciation rights ("SARs") and the closing share price on the grant date for restricted shares and restricted share units. 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. As the SARs are liability classified, the fair value is remeasured at the end of each month and the expense is adjusted accordingly. 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 and is subject to adjustment based on management's assessment of the Company's performance relative to the target number of shares performance criteria. The option valuation model used in determining the fair value of the stock options and SARs requires assumptions, which impact the assumed fair value, including the expected life of the stock option, the risk-free interest rate, expected volatility of the stock over the expected life and the expected dividend yield. The Company uses historical data to determine these assumptions and if these assumptions change significantly for future grants, share-based compensation expense will fluctuate in future years. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use asset on the balance sheet. The Company adopted ASU 2016-02, along with related clarifications and improvements, as of January 1, 2019, using the modified retrospective approach, which allows the Company to apply ASC 840, Leases , in the comparative periods presented in the year of adoption. The cumulative effect of adoption was recorded as an adjustment to the opening balance of retained earnings in the period of adoption. The Company elected to use the package of practical expedients, which permitted the Company to not reassess: (i) whether a contract is or contains a lease, (ii) lease classification, and (iii) initial direct costs resulting from the lease. The Company has not elected the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of operating lease assets. The Company elected to apply the short-term lease exception, which allows the Company to keep leases with terms of 12 months or less off the balance sheet. The Company also elected to combine lease and non-lease components as a single component for the Company's entire population of lease assets. Refer to Note 3 , Leases , for further discussion of the new guidance impact. In the first quarter of 2019, the FASB issued ASU 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. An election was not made to reclassify the income tax effects of the Tax Cuts and Jobs Act (“Tax Reform Act”) from accumulated other comprehensive income to retained earnings. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires entities to measure the impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. ASU 2016-13 requires using a modified retrospective transition method. The guidance introduces a new credit reserving methodology known as the Current Expected Credit Loss ("CECL") methodology, which will alter the estimation process, inputs, and assumptions used in estimating credit losses. For the financial assets that are under the scope of this standard, entities will be required to use a new forward-looking “expected loss” model that estimates the loss over the lifetime of the asset based on historical experience, current conditions, and reasonable and supportable forecasts. This will result in earlier recognition of allowance for doubtful accounts and will replace the Company’s “incurred loss” model that delayed the full amount of credit loss until the loss is probable of occurring. In addition, the standard requires entities to evaluate financial instruments by recording allowance for doubtful accounts by pooling of instruments based on similar risk characteristics, rather than a specific identification approach. The effective date is for fiscal years beginning after December 15, 2019, with early adoption permitted for financial statement periods beginning after December 15, 2018. The Company is adopting ASU 2016-13 effective January 1, 2020 and anticipates that it will mainly impact accounts receivable and unbilled revenue. The Company has analyzed its historical credit loss experience and considered current conditions and reasonable forecasts in developing the expected credit loss rates. The Company applied the CECL methodology to the applicable outstanding balances at December 31, 2019. Based on this calculation, the Company expects to record an adjustment of approximately $1.0 million to $2.0 million on January 1, 2020 to retained earnings as a cumulative-effect adjustment under the modified retrospective transition method. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820, Fair Value Measurement . This ASU modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The effective date is the first quarter of fiscal year 2020, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2020 permitted for the new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company does not expect the adoption of ASU 2018-13 to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , as part of its simplification initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts | Activity related to our allowance for doubtful accounts for the years ended December 31, is as follows (in thousands): 2019 2018 2017 Balance at beginning of period $ 4,880 $ 3,534 $ 2,622 Charged to expense 1,068 3,601 454 Uncollectible accounts written off, net of recoveries (2,118 ) (2,255 ) 457 Balance at end of period $ 3,830 $ 4,880 $ 3,534 |
Schedule of Property and Equipment | Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives, by asset class, are as follows: Computer equipment 3 years Software, including internal-use software 1 to 5 years Office equipment 5 years Furniture and fixtures 7 years Property and equipment at December 31, 2019 and 2018 , respectively, consisted of the following (in thousands): 2019 2018 Computer equipment $ 14,249 $ 12,258 Software, including internal-use software 89,072 82,426 Office equipment and furniture 7,288 7,315 Buildings 1,666 49,169 Leasehold improvements 6,776 4,394 Total Property and Equipment, Gross 119,051 155,562 Less: Accumulated depreciation (81,827 ) (72,629 ) Property and Equipment, Net $ 37,224 $ 82,933 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | Supplemental balance sheet information related to leases was as follows (in thousands): December 31, 2019 Operating leases: Right of use assets $ 50,668 Finance leases: Right of use assets, cost 815 Less: Accumulated amortization (324 ) Right of use assets, net 491 Total right of use assets, net $ 51,159 Lease liabilities: Current: Operating $ 9,107 Finance 176 Non-current: Operating 45,728 Finance 347 Total lease liabilities $ 55,358 |
Lease, Cost | The components of lease cost were as follows (in thousands): December 31, 2019 Operating lease cost $ 10,725 Variable lease cost 1,645 Short-term lease cost 1,871 Finance lease cost: Amortization of right of use assets 91 Interest on lease liabilities 25 Total finance lease cost 116 Less: Sublease income (268 ) Total lease cost $ 14,089 Average lease terms and discount rates were as follows: December 31, 2019 Weighted-average remaining lease term (years) Operating leases 6.79 Finance leases 2.98 Weighted-average discount rate Operating leases 6.61 % Finance leases 7.27 % Supplemental cash flow information related to leases was as follows (in thousands): December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,649 Operating cash flows from finance leases 129 Total $ 8,778 |
Lessee, Operating Lease, Liability, Maturity | The aggregate future lease payments for operating and finance leases as of December 31, 2019 are as follows (in thousands): Operating Finance 2020 $ 11,477 $ 204 2021 12,222 204 2022 10,551 133 2023 7,975 29 2024 6,531 9 Thereafter 20,961 — Total lease payments 69,717 579 Less: Interest (14,882 ) (56 ) Present value of lease liabilities $ 54,835 $ 523 |
Finance Lease, Liability, Maturity | The aggregate future lease payments for operating and finance leases as of December 31, 2019 are as follows (in thousands): Operating Finance 2020 $ 11,477 $ 204 2021 12,222 204 2022 10,551 133 2023 7,975 29 2024 6,531 9 Thereafter 20,961 — Total lease payments 69,717 579 Less: Interest (14,882 ) (56 ) Present value of lease liabilities $ 54,835 $ 523 |
Schedule of Future Minimum Rental Payments for Operating Leases | The aggregate future lease payments for operating and capital leases as of December 31, 2018 were as follows (in thousands): Operating 2019 $ 6,383 2020 5,017 2021 4,422 2022 3,245 2023 2,068 Thereafter 1,966 Total lease payments $ 23,101 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Liability | The following table is a summary of the Company's costs to fulfill and contract liabilities (in thousands): December 31, 2019 December 31, 2018 Costs to fulfill $ 1,238 $ 1,152 Contract liabilities 9,568 17,614 Cash received 36,662 11,387 Revenue recognized 44,708 11,850 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a summary of the goodwill balance for each reportable segment as of December 31 (in thousands): North America EMEA LATAM Total Balance as of December 31, 2017 $ 170,685 $ 21,815 $ 7,447 $ 199,946 Goodwill impairment (18,432 ) (20,778 ) (7,109 ) (46,319 ) Foreign exchange impact (95 ) (1,037 ) (338 ) (1,469 ) Balance as of December 31, 2018 152,158 — — 152,158 Foreign exchange impact 52 — — 52 Balance as of December 31, 2019 $ 152,210 $ — $ — $ 152,210 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following is a summary of the Company’s intangible assets as of December 31 (in thousands, except weighted average life): 2019 2018 Weighted Average Life in Years Customer lists $ 73,678 $ 73,792 13.6 Non-competition agreements 959 950 4.1 Trade names 2,510 2,510 13.3 Patents 57 57 9.0 77,204 77,309 Less accumulated amortization and impairment: Customer lists (66,382 ) (64,528 ) Non-competition agreements (959 ) (950 ) Trade names (2,098 ) (1,956 ) Patents (51 ) (47 ) Total accumulated amortization and impairment (69,490 ) (67,481 ) Intangible assets, net $ 7,714 $ 9,828 |
Schedule of Future Amortization Expense | As of December 31, 2019 , estimated amortization expense for the next five years and thereafter is as follows (in thousands): 2020 $ 2,024 2021 1,784 2022 1,408 2023 962 2024 745 Thereafter 791 $ 7,714 |
Restructuring Activities and _2
Restructuring Activities and Charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table summarizes the accrued restructuring activities for this plan for the year ended December 31, 2019 (in thousands), all of which relate to EMEA: Employee Severance and Related Benefits Lease and Contract Termination Costs Other Total Balance as of December 31, 2018 $ 486 $ — $ — $ 486 Cash payments (364 ) — — (364 ) Balance as of December 31, 2019 $ 122 $ — $ — $ 122 The following table summarizes the accrued restructuring activities for this plan (in thousands): Employee Severance and Related Benefits Lease and Contract Termination Costs Compensation Realignment and Other Retention Other Total Balance at December 31, 2017 $ — $ — $ — $ — $ — Charges 3,257 512 — 2,262 6,031 Cash payments (2,594 ) (226 ) — (1,557 ) (4,377 ) Non-cash settlements/adjustments (1) (305 ) — — — (305 ) Balance at December 31, 2018 358 286 — 705 1,349 Charges 5,073 920 5,208 4,717 15,918 Prepayments (2) — — 199 — 199 Cash payments (4,763 ) (1,016 ) (1,771 ) (5,164 ) (12,714 ) Non-cash settlements/adjustments (1) (2 ) (167 ) — — (169 ) Balance at December 31, 2019 $ 666 $ 23 $ 3,636 $ 258 $ 4,583 (1) Non-cash settlements and adjustments consist of (1) ASC 842 transition adjustments for a historical lease termination liability under ASC 840 and (2) foreign currency impacts. (2) For compensation realignment and other retention amounts, expense is recognized over a mandatory future service period, whereby payments occur at certain intervals throughout the mandatory future service period. Prepayments reflected in this line item represent payments that have occurred as of December 31, 2019 . The Company recorded the following restructuring costs by segment (in thousands): Year Ended December 31, 2019 2018 North America $ 8,466 $ 882 LATAM 515 368 EMEA 1,735 2,496 Other 5,202 2,285 Total $ 15,918 $ 6,031 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives, by asset class, are as follows: Computer equipment 3 years Software, including internal-use software 1 to 5 years Office equipment 5 years Furniture and fixtures 7 years Property and equipment at December 31, 2019 and 2018 , respectively, consisted of the following (in thousands): 2019 2018 Computer equipment $ 14,249 $ 12,258 Software, including internal-use software 89,072 82,426 Office equipment and furniture 7,288 7,315 Buildings 1,666 49,169 Leasehold improvements 6,776 4,394 Total Property and Equipment, Gross 119,051 155,562 Less: Accumulated depreciation (81,827 ) (72,629 ) Property and Equipment, Net $ 37,224 $ 82,933 |
Revolving Credit Facilities (Ta
Revolving Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Derivative Liabilities at Fair Value | The following schedule shows the change in fair value of the ABL Embedded Derivative at December 31, 2019 (in thousands): December 31, 2018 $ — Issuance of associated debt (July 16, 2019) 599 Change in fair value (102 ) December 31, 2019 $ 497 The following schedule shows the change in fair value of the Term Loan Embedded Derivative at December 31, 2019 (in thousands): December 31, 2018 $ — Issuance of associated debt (July 16, 2019) 481 Change in fair value (74 ) December 31, 2019 $ 407 |
Schedule of Debt | The Company’s ABL Credit Facility at December 31, 2019 is summarized as follows (in thousands): ABL Credit Facility outstanding $ 60,727 Less: Current portion of ABL Credit Facility for UK Borrowings (593 ) Long-term portion of ABL Credit Facility 60,134 Less: ABL Embedded Derivative Discount (1) (545 ) ABL Embedded Derivative Liability (2) 497 Total Revolving credit facility - non-current $ 60,086 (1) Original value of embedded derivative at July 16, 2019, less amortization. (2) Value of embedded derivative as of December 31, 2019. The Company’s Term Loan Credit Facility at December 31, 2019 is summarized as follows (in thousands): Term Loan Credit Facility outstanding $ 97,500 Less: Current portion of Term Loan Credit Facility (7,500 ) Long-term portion of Term Loan Credit Facility 90,000 Less: Original Issue Discount (1) (7,702 ) Term Loan Embedded Derivative Liability (2) 407 Initial Warrant Liability (2) 6,537 Total Term Loan - Non-current $ 89,242 (1) Original value of OID attributable to debt issuance costs, warrant liability and embedded derivatives at July 16, 2019, less amortization. (2) Value of warrant liability and embedded derivatives as of December 31, 2019. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Derivative Liabilities at Fair Value | The following schedule shows the change in fair value of the ABL Embedded Derivative at December 31, 2019 (in thousands): December 31, 2018 $ — Issuance of associated debt (July 16, 2019) 599 Change in fair value (102 ) December 31, 2019 $ 497 The following schedule shows the change in fair value of the Term Loan Embedded Derivative at December 31, 2019 (in thousands): December 31, 2018 $ — Issuance of associated debt (July 16, 2019) 481 Change in fair value (74 ) December 31, 2019 $ 407 |
Schedule of Warrant Liabilities at Fair Value | The Initial Warrant was recorded as a liability at fair value and will be treated as a discount on the associated debt. The following schedule shows the change in fair value of the Initial Warrant at December 31, 2019 (in thousands): December 31, 2018 $ — Issuance of initial warrant (July 16, 2019) 4,304 Change in fair value 2,233 December 31, 2019 $ 6,537 |
Schedule of Debt | The Company’s ABL Credit Facility at December 31, 2019 is summarized as follows (in thousands): ABL Credit Facility outstanding $ 60,727 Less: Current portion of ABL Credit Facility for UK Borrowings (593 ) Long-term portion of ABL Credit Facility 60,134 Less: ABL Embedded Derivative Discount (1) (545 ) ABL Embedded Derivative Liability (2) 497 Total Revolving credit facility - non-current $ 60,086 (1) Original value of embedded derivative at July 16, 2019, less amortization. (2) Value of embedded derivative as of December 31, 2019. The Company’s Term Loan Credit Facility at December 31, 2019 is summarized as follows (in thousands): Term Loan Credit Facility outstanding $ 97,500 Less: Current portion of Term Loan Credit Facility (7,500 ) Long-term portion of Term Loan Credit Facility 90,000 Less: Original Issue Discount (1) (7,702 ) Term Loan Embedded Derivative Liability (2) 407 Initial Warrant Liability (2) 6,537 Total Term Loan - Non-current $ 89,242 (1) Original value of OID attributable to debt issuance costs, warrant liability and embedded derivatives at July 16, 2019, less amortization. (2) Value of warrant liability and embedded derivatives as of December 31, 2019. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consisted of the following components for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Current income tax expense (benefit): Federal $ 795 $ (781 ) $ 3,037 State (13 ) 180 53 Foreign 3,797 4,558 4,094 Total current income tax expense 4,579 3,957 7,184 Deferred income tax expense (benefit): Federal (565 ) (3,385 ) 1,984 State 840 (90 ) 1,556 Foreign (1,154 ) (1,129 ) 533 Total deferred income tax expense (879 ) (4,604 ) 4,073 Provision (benefit) for income taxes $ 3,700 $ (647 ) $ 11,257 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes for the years ended December 31, 2019 , 2018 and 2017 differs from the amount computed by applying the U.S. federal income tax rate of 21% to pretax income (loss) because of the effect of the following items (in thousands): Year Ended December 31, 2019 2018 2017 Tax (benefit) provision at U.S. federal income tax rate $ (1,342 ) $ (16,239 ) $ 9,506 State income taxes, net of federal income tax effect (775 ) (307 ) 883 Federal, state and international deferred tax rate change 1,222 1,135 (4,907 ) Transition tax — (924 ) 5,323 Effect of non-US operations (1,859 ) (2,424 ) (2,228 ) Nontaxable contingent liability fair value changes and goodwill impairment — 11,254 237 Research and development credit (202 ) (40 ) (38 ) Change in valuation allowances (98 ) 3,973 2,103 Prior year provision to return adjustment (57 ) 942 (581 ) Write-off of deferred taxes and tax receivables 1,961 431 70 Nondeductible expense and other 904 428 889 Tax reform global intangible low-taxed income 3,178 1,124 — Tax reform BEAT 768 — — Provision (benefit) for income taxes $ 3,700 $ (647 ) $ 11,257 |
Schedule of Deferred Tax Assets and Liabilities | At December 31, 2019 and 2018 , the Company’s deferred tax assets and liabilities consisted of the following (in thousands): December 31, 2019 2018 Deferred tax assets: Inventory reserve $ 271 $ 992 Other reserves and allowances 7,870 3,470 Income tax basis in excess of financial statement basis in intangible assets 509 1,085 Deductible stock-based compensation 2,829 3,257 ASC 842 lease liability 8,989 — Net operating loss carryforward 17,100 19,409 Tax credit carryforwards 402 500 Deferred tax assets 37,970 28,713 Valuation allowance (13,809 ) (13,946 ) Net deferred tax assets $ 24,161 $ 14,767 Deferred tax liabilities: Prepaid & other expenses $ (184 ) $ (284 ) Fixed assets (3,735 ) (4,826 ) Intangible assets (17,762 ) (16,067 ) ASC 842 right of use asset (8,351 ) — Deferred tax liabilities $ (30,032 ) $ (21,177 ) Net deferred tax liability $ (5,871 ) $ (6,410 ) |
Summary of Uncertain Tax Positions | The following table summarizes the Company's uncertain tax positions (in thousands): December 31, 2019 2018 2017 Beginning balance $ 522 $ 499 $ 517 Additions (subtractions) based on tax positions related to the current year — — (35 ) Additions (subtractions) based on tax positions related to the prior year (257 ) — — Interest and penalties 14 23 17 Statute of limitations lapses — — — Ending balance $ 279 $ 522 $ 499 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements, Valuation Techniques | The table below sets forth the assumptions used within the Black-Scholes-Merton option pricing model to value the Company’s warrant liabilities: Stock price $ 5.51 Exercise price $ 0.01 Time until expiration (years) 4.54 Expected volatility 53.0 % Risk-free interest rate 1.67 % Expected dividend yield — % |
Schedule of Fair Value, Liabilities Measured on Recurring Basis | The table below sets forth the total fair value of the ABL Credit Facility, ABL Embedded Derivative, Term Loan Credit Facility, Term Loan Embedded Derivative, and Warrant as of December 31, 2019 (in thousands): December 31, 2019 Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value ABL Credit Facility $ 129,027 $ — $ 129,027 ABL Embedded Derivative — 497 497 Term Loan Credit Facility 91,980 — 91,980 Warrant — 6,537 6,537 Term Loan Embedded Derivative — 407 407 Total $ 221,007 $ 7,441 $ 228,448 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of (Loss) Earnings Per Share | The computation of basic and diluted (loss) earnings per common share for the years ended December 31, 2019 , 2018 and 2017 , is as follows (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Net (loss) income $ (10,075 ) $ (76,683 ) $ 15,869 Shares used in computing per share amounts: Weighted average shares outstanding 51,958 52,230 53,851 Issuance of warrants 1,335 — — Weighted average shares outstanding - basic 53,293 52,230 53,851 Employee stock options and restricted common shares — — 1,093 Weighted average shares outstanding - diluted 53,293 52,230 54,944 Basic (loss) earnings per share $ (0.19 ) $ (1.47 ) $ 0.29 Diluted (loss) earnings per share $ (0.19 ) $ (1.47 ) $ 0.29 |
Stock-Based Compensation Plan (
Stock-Based Compensation Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity for the year ended December 31, 2019 is as follows (in thousands, except per share and contractual life amounts): Outstanding Options Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Life (years) Outstanding at December 31, 2018 4,111 $ 8.53 $ 37 Granted — — — Exercised (27 ) 2.36 68 Forfeited/Expired (1,923 ) 8.55 5 Outstanding at December 31, 2019 2,161 $ 8.59 $ 2 5.87 Vested and exercisable at December 31, 2019 1,385 $ 8.56 $ 2 4.56 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following assumptions were utilized in the Black-Scholes valuation model for options granted: 2019 (1) 2018 2017 Dividend yield — — — Risk-free interest rate — 2.76%-3.15% 1.98%-2.34% Expected life — 6.4 years 6.5 years Volatility — 35.0%-36.2% 36.0%-38.0% (1) No options were granted in 2019. The following weighted average assumptions were utilized in the Black-Scholes valuation model to estimate the fair value of the SARs as of December 31, 2019 : 2019 Dividend yield — Risk-free interest rate 1.69 % Expected life 6.3 years Volatility 46.7 % |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of restricted share unit activity for the year ended December 31, 2019 is as follows (in thousands, except per share amounts): Outstanding Restricted Share Units Weighted-Average Grant-Date Fair Value Nonvested Restricted Share Units at December 31, 2018 552 $ 7.74 Granted 1,893 3.62 Vested and transferred to unrestricted share units (204 ) 7.76 Forfeited (109 ) 5.64 Nonvested Restricted Share Units at December 31, 2019 2,132 $ 4.16 A summary of restricted share activity for the year ended December 31, 2019 is as follows (in thousands, except per share amounts): Outstanding Restricted Common Shares Weighted-Average Grant-Date Fair Value Nonvested Restricted Common shares at December 31, 2018 447 $ 9.13 Granted — — Vested and transferred to unrestricted common stock (158 ) 8.67 Forfeited (122 ) 9.07 Nonvested Restricted Common shares at December 31, 2019 167 $ 9.61 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | A summary of SAR activity for the year ended December 31, 2019 is as follows (in thousands, except per share and contractual life amounts): Outstanding Weighted- Aggregate Weighted-Average Remaining Contractual Life (years) Outstanding at December 31, 2018 — $ — $ — Granted 1,449 3.64 2,716 Exercised — — — Forfeited/Expired — — — Outstanding at December 31, 2019 1,449 $ 3.64 $ 2,716 9.4 Vested and exercisable at December 31, 2019 — $ — $ — |
Schedule of Nonvested Performance-based Units Activity | A summary of performance share unit activity for the year ended December 31, 2019 is as follows (in thousands, except per share amounts): Outstanding Weighted- Average Grant- Date Fair Value Nonvested Performance Share Units at December 31, 2018 293 $ 8.72 Granted 594 3.39 Vested — — Forfeited (86 ) 10.41 Nonvested Performance Share Units at December 31, 2019 801 $ 4.58 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The table below presents total assets for the Company's reportable segments and Other (in thousands): As of December 31, 2019 2018 North America $ 424,775 $ 398,432 EMEA 140,013 160,228 LATAM 46,822 43,031 Other 17,673 20,038 Total assets $ 629,283 $ 621,729 The long-lived assets in the table below consist of net property and equipment (in thousands): As of December 31, 2019 2018 North America $ 2,713 $ 11,078 EMEA 12,675 51,131 LATAM 463 598 Other 21,373 20,126 Total long-lived assets $ 37,224 $ 82,933 The table below presents financial information for the Company's reportable segments and Other for the fiscal years noted (in thousands): North America EMEA LATAM Other Total Fiscal 2019: Revenue from third parties $ 826,355 $ 250,719 $ 80,760 $ — $ 1,157,834 Revenue from other segments 4,463 9,302 22 (13,787 ) — Total revenue $ 830,818 $ 260,021 $ 80,782 $ (13,787 ) $ 1,157,834 Adjusted EBITDA $ 85,662 $ 12,051 $ 1,943 $ (50,611 ) $ 49,045 Capital expenditures $ 10,525 $ 2,815 $ 38 $ — $ 13,378 Fiscal 2018: Revenue from third parties $ 777,202 $ 260,729 $ 83,175 $ — $ 1,121,106 Revenue from other segments 3,200 9,500 217 (12,917 ) — Total revenue $ 780,402 $ 270,229 $ 83,392 $ (12,917 ) $ 1,121,106 Adjusted EBITDA $ 61,250 $ 6,355 $ 3,082 $ (43,372 ) $ 27,315 Capital expenditures $ 8,649 $ 2,609 $ 5 $ — $ 11,263 Fiscal 2017: Revenue from third parties $ 780,520 $ 265,669 $ 92,181 $ — $ 1,138,370 Revenue from other segments 5,469 13,444 1,693 (20,606 ) — Total revenue $ 785,989 $ 279,113 $ 93,874 $ (20,606 ) $ 1,138,370 Adjusted EBITDA $ 73,790 $ 15,293 $ 4,278 $ (35,867 ) $ 57,494 Capital expenditures $ 8,610 $ 3,873 $ — $ — $ 12,483 |
Schedule of EBITDA Reconciliation | The table below reconciles Adjusted EBITDA to Net (loss) income in the Company's consolidated statement of operations (in thousands): Year Ended December 31, 2019 2018 2017 Adjusted EBITDA $ 49,045 $ 27,315 $ 57,494 Depreciation and amortization (12,328 ) (12,988 ) (13,390 ) Stock-based compensation - equity classified awards (5,533 ) (5,302 ) (6,820 ) Stock-based compensation - SARs market-to-market (748 ) — — Restructuring charges (15,918 ) (6,031 ) — Executive search fees (80 ) (235 ) (454 ) Professional fees related to control remediation (1,130 ) (2,430 ) — Sales and use tax audit (25 ) (113 ) (203 ) Other professional fees (2,241 ) (507 ) — Goodwill impairment — (46,319 ) — Intangible and long-lived asset impairment — (18,121 ) — Senior leadership transition and other employee-related costs — (1,410 ) — Obsolete retail inventory — (950 ) — Professional fees related to ASC 606 implementation — (1,092 ) (829 ) Business development realignment — — (715 ) Change in fair value of contingent consideration — — (677 ) Czech currency impact on procurement margin — — (860 ) Income (loss) from operations 11,042 (68,183 ) 33,546 Interest income 366 218 97 Interest expense (14,097 ) (7,749 ) (4,729 ) Other, net (3,686 ) (1,616 ) (1,788 ) (Loss) income before income taxes (6,375 ) (77,330 ) 27,126 Provision (benefit) for income tax (3,700 ) 647 (11,257 ) Net (loss) income $ (10,075 ) $ (76,683 ) $ 15,869 |
Quarterly Selected Financial _2
Quarterly Selected Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The tables below include quarterly selected financial information for 2019 and 2018 (in thousands, except per share amounts): Year Ended December 31, 2019 First Second Third Fourth Revenue $ 267,211 $ 283,861 $ 287,688 $ 319,074 Gross profit (1) 62,010 68,398 69,495 62,106 (Loss) income from operations (371 ) 4,063 3,762 3,588 Net loss $ (2,044 ) $ (508 ) $ (1,062 ) $ (6,461 ) Net loss per share: Basic and diluted $ (0.04 ) $ (0.01 ) $ (0.02 ) $ (0.12 ) (1) During the fourth quarter 2019, the Company reclassified $13.8 million into cost of goods sold, of which $9.4 million of these costs were recorded in SG&A over the first three quarters of the year. The reclassification had no impact on the annual 2019 consolidated financial statements and similar amounts in prior years were not material. Year Ended December 31, 2018 First Second Third Fourth Revenue $ 274,297 $ 281,988 $ 270,844 $ 293,977 Gross profit 65,839 64,941 63,967 59,066 Income (loss) from operations (2) 984 2,377 (43,312 ) (28,232 ) Net loss $ (1,874 ) $ (299 ) $ (45,120 ) $ (29,390 ) Net loss per share: Basic and diluted $ (0.03 ) $ (0.01 ) $ (0.87 ) $ (0.57 ) (2) In the third quarter of 2018, the Company recognized a $27.9 million goodwill impairment charge, $13.8 million intangible asset impairment charge and $3.0 million long-lived asset impairment charge. In the fourth quarter of 2018, the Company recognized an additional $18.4 million goodwill impairment charge and a $1.3 million contract asset impairment charge related to costs to fulfill a contract that were deemed to be non-recoverable in North America. Refer to Note 4 , Revenue Recognition , Note 5 , Goodwill , Note 6 , Other Intangible Assets and Note 8 , Property and Equipment for further discussion. |
Revision of Prior Period Fina_2
Revision of Prior Period Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Revision of Prior Period Financial Statements | Reconciliation of revised financial statement amounts Revised consolidated statements of operations amounts (in thousands, except per share data) Year Ended December 31, 2018 As Reported Adjustments As Revised Revenue $ 1,121,551 $ (445 ) $ 1,121,106 Cost of goods sold 866,453 840 867,293 Gross profit 255,098 (1,285 ) 253,813 Selling, general and administrative expenses 239,124 (587 ) 238,537 Loss from operations (67,485 ) (698 ) (68,183 ) Loss before income taxes (76,632 ) (698 ) (77,330 ) Income tax benefit (461 ) (186 ) (647 ) Net loss (76,171 ) (512 ) (76,683 ) Basic loss per share (1.46 ) (0.01 ) (1.47 ) Diluted loss per share (1.46 ) (0.01 ) (1.47 ) Comprehensive loss (81,251 ) (514 ) (81,765 ) Adjusted EBITDA 27,900 (585 ) 27,315 Year Ended December 31, 2017 As Reported Adjustments As Revised Revenue $ 1,138,361 $ 9 $ 1,138,370 Cost of goods sold 862,903 (41 ) 862,862 Gross profit 275,458 50 275,508 Selling, general and administrative expenses 227,253 642 227,895 Income from operations 34,138 (592 ) 33,546 Income before income taxes 27,718 (592 ) 27,126 Income tax expense 11,288 (31 ) 11,257 Net income 16,430 (561 ) 15,869 Basic earnings per share 0.31 (0.02 ) 0.29 Diluted earnings per share 0.30 (0.01 ) 0.29 Comprehensive income 18,150 (561 ) 17,589 Adjusted EBITDA 57,883 (389 ) 57,494 Revised consolidated balance sheet amounts (in thousands) As of December 31, 2018 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 193,253 $ (67 ) $ 193,186 Unbilled revenue 46,474 (222 ) 46,252 Inventories 56,001 (286 ) 55,715 Prepaid expenses 16,982 (726 ) 16,256 Other current assets 10,379 354 10,733 Total current assets 373,586 (947 ) 372,639 Total assets 622,676 (947 ) 621,729 Accounts payable 158,449 (421 ) 158,028 Accrued expenses 35,474 224 35,698 Other current liabilities 26,231 1,959 28,190 Total current liabilities 380,504 1,762 382,266 Deferred income taxes 8,178 (573 ) 7,605 Total liabilities 439,585 1,189 440,774 Accumulated other comprehensive loss (24,309 ) (2 ) (24,311 ) Retained earnings 48,905 (2,134 ) 46,771 Total stockholders' equity 183,091 (2,136 ) 180,955 Total liabilities and stockholders' equity 622,676 (947 ) 621,729 As of December 31, 2017 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 205,386 $ 62 $ 205,448 Other current assets 37,865 335 38,200 Total current assets 383,088 397 383,485 Total assets 649,638 397 650,035 Accounts payable 141,164 (56 ) 141,108 Accrued expenses 34,391 635 35,026 Other current liabilities 24,078 1,849 25,927 Total current liabilities 217,253 2,428 219,681 Deferred income taxes 12,043 (409 ) 11,634 Total liabilities 365,093 2,019 367,112 Retained earnings 124,442 (1,622 ) 122,820 Total stockholders' equity 284,545 (1,622 ) 282,923 Total liabilities and stockholders' equity 649,638 397 650,035 Revised consolidated statements of cash flows amounts (in thousands) Year Ended December 31, 2018 As Reported Adjustments As Revised Cash flows from operating activities: Net loss $ (76,171 ) $ (512 ) $ (76,683 ) Deferred income taxes (4,441 ) (163 ) (4,604 ) Accounts receivable and unbilled revenue 4,112 358 4,470 Inventories (16,325 ) 286 (16,039 ) Prepaid expenses and other assets 1,432 688 2,120 Accounts payable 21,959 (374 ) 21,585 Accrued expenses and other liabilities 5,473 (283 ) 5,190 Net cash provided by operating activities 23,058 — 23,058 Year Ended December 31, 2017 As Reported Adjustments As Revised Cash flows from operating activities: Net income $ 16,430 $ (561 ) $ 15,869 Deferred income taxes 4,072 1 4,073 Accounts receivable and unbilled revenue (41,877 ) 6 (41,871 ) Prepaid expenses and other assets (13,547 ) (335 ) (13,882 ) Accounts payable 18,152 (56 ) 18,096 Accrued expenses and other liabilities 11,162 945 12,107 Net cash provided by operating activities 11,698 — 11,698 Reconciliation of revised quarterly financial statement amounts (unaudited) Revised consolidated statements of operations amounts (unaudited) (in thousands, except per share data) Three Months Ended March 31, 2019 As Reported Adjustments As Revised Revenue $ 267,239 $ (28 ) $ 267,211 Cost of goods sold 206,043 (842 ) 205,201 Gross profit 61,196 814 62,010 Selling, general and administrative expenses 55,805 25 55,830 Loss from operations (1,160 ) 789 (371 ) Other, net (740 ) 300 (440 ) Total other expense (3,387 ) 300 (3,087 ) Loss before income taxes (4,547 ) 1,089 (3,458 ) Income tax benefit (2,085 ) 671 (1,414 ) Net loss (2,462 ) 418 (2,044 ) Basic loss per share (0.05 ) 0.01 (0.04 ) Diluted loss per share (0.05 ) 0.01 (0.04 ) Comprehensive loss (1,715 ) 418 (1,297 ) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 As Reported Adjustments As Revised As Reported Adjustments As Revised Revenue $ 284,053 $ (192 ) $ 283,861 $ 551,291 $ (219 ) $ 551,072 Cost of goods sold 214,986 477 215,463 421,029 (365 ) 420,664 Gross profit 69,067 (669 ) 68,398 130,262 146 130,408 Selling, general and administrative expenses 58,661 (1,257 ) 57,404 114,466 (1,231 ) 113,235 Income from operations 3,475 588 4,063 2,315 1,377 3,692 Other, net 279 — 279 (460 ) 299 (161 ) Total other expense (2,103 ) — (2,103 ) (5,490 ) 299 (5,191 ) Income (loss) before income taxes 1,372 588 1,960 (3,175 ) 1,676 (1,499 ) Income tax expense 2,541 (73 ) 2,468 456 597 1,053 Net loss (1,169 ) 661 (508 ) (3,631 ) 1,079 (2,552 ) Basic loss per share (0.02 ) 0.01 (0.01 ) (0.07 ) 0.02 (0.05 ) Diluted loss per share (0.02 ) 0.01 (0.01 ) (0.07 ) 0.02 (0.05 ) Comprehensive loss (916 ) 661 (255 ) (2,631 ) 1,079 (1,552 ) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 As Reported Adjustments As Revised As Reported Adjustments As Revised Revenue $ 286,525 $ 1,163 $ 287,688 $ 837,816 $ 944 $ 838,760 Cost of goods sold 218,356 (163 ) 218,193 639,385 (528 ) 638,857 Gross profit 68,169 1,326 69,495 198,431 1,472 199,903 Selling, general and administrative expenses 59,938 (187 ) 59,751 174,404 (1,418 ) 172,986 Restructuring and other charges 3,055 (163 ) 2,892 10,687 (163 ) 10,524 Income from operations 2,086 1,676 3,762 4,401 3,053 7,454 Other, net (1,736 ) 1 (1,735 ) (2,196 ) 300 (1,896 ) Total other expense (6,075 ) 1 (6,074 ) (11,565 ) 300 (11,265 ) Loss before income taxes (3,989 ) 1,677 (2,312 ) (7,164 ) 3,353 (3,811 ) Income tax benefit (1,815 ) 565 (1,250 ) (1,359 ) 1,162 (197 ) Net loss (2,174 ) 1,112 (1,062 ) (5,805 ) 2,191 (3,614 ) Basic loss per share (0.04 ) 0.02 (0.02 ) (0.11 ) 0.04 (0.07 ) Diluted loss per share (0.04 ) 0.02 (0.02 ) (0.11 ) 0.04 (0.07 ) Comprehensive loss (3,910 ) 1,112 (2,798 ) (6,541 ) 2,191 (4,350 ) Three Months Ended March 31, 2018 As Reported Adjustments As Revised Revenue $ 274,539 $ (242 ) $ 274,297 Cost of goods sold 208,472 (14 ) 208,458 Gross profit 66,067 (228 ) 65,839 Selling, general and administrative expenses 61,167 29 61,196 Income from operations 1,241 (257 ) 984 Loss before income taxes (1,111 ) (257 ) (1,368 ) Income tax expense 573 (67 ) 506 Net loss (1,684 ) (190 ) (1,874 ) Basic loss per share (0.03 ) — (0.03 ) Diluted loss per share (0.03 ) — (0.03 ) Comprehensive income 1,680 (190 ) 1,490 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Adjustments As Revised As Reported Adjustments As Revised Revenue $ 281,967 $ 21 $ 281,988 $ 556,506 $ (221 ) $ 556,285 Cost of goods sold 217,096 (49 ) 217,047 425,568 (63 ) 425,505 Gross profit 64,871 70 64,941 130,938 (158 ) 130,780 Selling, general and administrative expenses 59,002 48 59,050 120,169 77 120,246 Income from operations 2,355 22 2,377 3,596 (235 ) 3,361 Income (loss) before income taxes 304 22 326 (807 ) (235 ) (1,042 ) Income tax expense 603 22 625 1,176 (45 ) 1,131 Net loss (299 ) — (299 ) (1,983 ) (190 ) (2,173 ) Basic loss per share (0.01 ) — (0.01 ) (0.04 ) — (0.04 ) Diluted loss per share (0.01 ) — (0.01 ) (0.04 ) — (0.04 ) Comprehensive (loss) income (5,906 ) — (5,906 ) (4,226 ) (190 ) (4,416 ) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As Reported Adjustments As Revised As Reported Adjustments As Revised Revenue $ 270,850 $ (6 ) $ 270,844 $ 827,356 $ (227 ) $ 827,129 Cost of goods sold 206,808 69 206,877 632,376 6 632,382 Gross profit 64,042 (75 ) 63,967 194,980 (233 ) 194,747 Selling, general and administrative expenses 56,142 25 56,167 176,312 101 176,413 Loss from operations (43,212 ) (100 ) (43,312 ) (39,617 ) (334 ) (39,951 ) Loss before income taxes (45,263 ) (100 ) (45,363 ) (46,070 ) (334 ) (46,404 ) Income tax (benefit) expense (326 ) 83 (243 ) 851 38 889 Net loss (44,937 ) (183 ) (45,120 ) (46,921 ) (372 ) (47,293 ) Basic loss per share (0.87 ) — (0.87 ) (0.90 ) — (0.90 ) Diluted loss per share (0.87 ) — (0.87 ) (0.90 ) — (0.90 ) Comprehensive loss (46,646 ) (183 ) (46,829 ) (50,872 ) (372 ) (51,244 ) Three Months Ended December 30, 2018 As Reported Adjustments As Revised Revenue $ 294,195 $ (218 ) $ 293,977 Cost of goods sold 234,077 834 234,911 Gross profit 60,118 (1,052 ) 59,066 Selling, general and administrative expenses 62,812 (688 ) 62,124 Loss from operations (27,868 ) (364 ) (28,232 ) Loss before income taxes (30,562 ) (364 ) (30,926 ) Income tax benefit (1,312 ) (224 ) (1,536 ) Net loss (29,250 ) (140 ) (29,390 ) Basic loss per share (0.56 ) (0.01 ) (0.57 ) Diluted loss per share (0.56 ) (0.01 ) (0.57 ) Comprehensive loss (30,379 ) (140 ) (30,519 ) Revised consolidated balance sheet amounts (unaudited) (in thousands) As of March 31, 2019 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 184,359 $ (82 ) $ 184,277 Unbilled revenue 51,166 (226 ) 50,940 Inventories 46,927 (303 ) 46,624 Prepaid expenses 14,245 (727 ) 13,518 Other current assets 36,188 206 36,394 Total current assets 358,736 (1,132 ) 357,604 Total assets 600,120 (1,132 ) 598,988 Accounts payable 149,813 (1,281 ) 148,532 Accrued expenses 31,339 252 31,591 Other current liabilities 31,493 2,202 33,695 Total current liabilities 372,513 1,173 373,686 Deferred income taxes 8,268 (573 ) 7,695 Total liabilities 417,811 600 418,411 Accumulated other comprehensive loss (23,562 ) (37 ) (23,599 ) Retained earnings 46,602 (1,695 ) 44,907 Total stockholders' equity 182,309 (1,732 ) 180,577 Total liabilities and stockholders' equity 600,120 (1,132 ) 598,988 As of June 30, 2019 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 188,687 $ (73 ) $ 188,614 Unbilled revenue 60,911 (357 ) 60,554 Inventories 51,553 (381 ) 51,172 Prepaid expenses 15,132 (726 ) 14,406 Other current assets 28,707 208 28,915 Total current assets 378,989 (1,329 ) 377,660 Total assets 631,596 (1,329 ) 630,267 Accounts payable 140,492 (901 ) 139,591 Deferred revenue 21,532 (35 ) 21,497 Accrued expenses 37,446 342 37,788 Other current liabilities 34,877 899 35,776 Total current liabilities 392,022 305 392,327 Deferred income taxes 8,295 (573 ) 7,722 Total liabilities 448,927 (268 ) 448,659 Accumulated other comprehensive loss (23,309 ) (28 ) (23,337 ) Retained earnings 45,433 (1,033 ) 44,400 Total stockholders' equity 182,669 (1,061 ) 181,608 Total liabilities and stockholders' equity 631,596 (1,329 ) 630,267 As of September 30, 2019 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 190,992 $ 153 $ 191,145 Unbilled revenue 65,584 (214 ) 65,370 Inventories 64,136 (140 ) 63,996 Prepaid expenses 13,973 (726 ) 13,247 Other current assets 13,271 208 13,479 Total current assets 425,761 (719 ) 425,042 Property and equipment, net 36,714 123 36,837 Total assets 680,067 (596 ) 679,471 Accounts payable 169,173 (750 ) 168,423 Deferred revenue 18,526 (162 ) 18,364 Accrued expenses 44,096 (163 ) 43,933 Other current liabilities 32,325 1,014 33,339 Total current liabilities 274,955 (61 ) 274,894 Deferred income taxes 8,257 (573 ) 7,684 Total liabilities 499,612 (634 ) 498,978 Accumulated other comprehensive loss (25,045 ) (38 ) (25,083 ) Retained earnings 43,259 76 43,335 Total stockholders' equity 180,455 38 180,493 Total liabilities and stockholders' equity 680,067 (596 ) 679,471 As of March 31, 2018 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 183,012 $ 72 $ 183,084 Unbilled revenue 47,685 (243 ) 47,442 Other current assets 33,716 393 34,109 Total current assets 366,296 222 366,518 Total assets 633,973 222 634,195 Accounts payable 120,260 (63 ) 120,197 Accrued expenses 40,081 636 40,717 Other current liabilities 24,073 1,869 25,942 Total current liabilities 215,938 2,442 218,380 Deferred income taxes 12,208 (408 ) 11,800 Total liabilities 354,319 2,034 356,353 Retained earnings 123,393 (1,812 ) 121,581 Total stockholders' equity 279,654 (1,812 ) 277,842 Total liabilities and stockholders' equity 633,973 222 634,195 As of June 30, 2018 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 185,222 $ 68 $ 185,290 Unbilled revenue 47,906 (228 ) 47,678 Other current assets 26,296 360 26,656 Total current assets 349,055 200 349,255 Total assets 644,417 200 644,617 Accounts payable 122,452 (116 ) 122,336 Accrued expenses 34,386 636 35,022 Other current liabilities 22,770 1,902 24,672 Total current liabilities 336,168 2,422 338,590 Deferred income taxes 12,236 (408 ) 11,828 Total liabilities 386,626 2,014 388,640 Retained earnings 123,094 (1,814 ) 121,280 Total stockholders' equity 257,791 (1,814 ) 255,977 Total liabilities and stockholders' equity 644,417 200 644,617 As of September 30, 2018 As Reported Adjustments As Revised Accounts receivable, net of allowance for doubtful accounts $ 188,744 $ (139 ) $ 188,605 Unbilled revenue 59,961 (227 ) 59,734 Other current assets 43,005 318 43,323 Total current assets 397,963 (48 ) 397,915 Total assets 661,783 (48 ) 661,735 Accounts payable 161,389 (249 ) 161,140 Accrued expenses 35,539 636 36,175 Other current liabilities 21,535 1,969 23,504 Total current liabilities 249,167 2,356 251,523 Deferred income taxes 12,143 (408 ) 11,735 Total liabilities 449,887 1,948 451,835 Retained earnings 78,156 (1,996 ) 76,160 Total stockholders' equity 211,896 (1,996 ) 209,900 Total liabilities and stockholders' equity 661,783 (48 ) 661,735 Consolidated statements of cash flows amounts (unaudited) (in thousands) Three Months Ended March 31, 2019 As Reported Adjustments As Revised Cash flows from operating activities: Net loss $ (2,462 ) $ 418 $ (2,044 ) Accounts receivable and unbilled revenue 3,924 4 3,928 Inventories 9,149 16 9,165 Prepaid expenses and other assets 116 158 274 Accounts payable (8,351 ) (856 ) (9,207 ) Accrued expenses and other liabilities (870 ) 260 (610 ) Net cash provided by operating activities 5,492 — 5,492 Six Months Ended June 30, 2019 As Reported Adjustments As Revised Cash flows from operating activities: Net loss $ (3,631 ) $ 1,079 $ (2,552 ) Accounts receivable and unbilled revenue (10,225 ) 126 (10,099 ) Inventories 4,488 94 4,582 Prepaid expenses and other assets (4,318 ) 155 (4,163 ) Accounts payable (17,670 ) (476 ) (18,146 ) Accrued expenses and other liabilities 23,529 (978 ) 22,551 Net cash provided by operating activities 1,289 — 1,289 Nine Months Ended September 30, 2019 As Reported Adjustments As Revised Cash flows from operating activities: Net loss $ (5,805 ) $ 2,191 $ (3,614 ) Accounts receivable and unbilled revenue (21,245 ) (243 ) (21,488 ) Inventory (8,767 ) (146 ) (8,913 ) Prepaid expenses and other assets (29,141 ) 156 (28,985 ) Accounts payable 12,403 (325 ) 12,078 Accrued expenses and other liabilities 25,378 (1,510 ) 23,868 Net cash used in operating activities (9,778 ) 123 (9,655 ) Cash flows from investing activities: Purchases of property and equipment (10,012 ) (123 ) (10,135 ) Net cash used in investing activities (10,402 ) (123 ) (10,525 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Realized gain (loss) on foreign currency transactions | $ (2.4) | $ (1.1) | $ (1.4) | |
Inventory reserve | 1.8 | 5 | 4.3 | |
Depreciation expense | 10.1 | 9.4 | 8.4 | |
Advertising expense | 0.6 | 1.4 | 1.2 | |
Internal Use Software | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Depreciation expense | 6.6 | 6.1 | $ 5.4 | |
Finite-lived intangible assets | $ 25.3 | $ 25.4 | ||
Customer lists | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Weighted average life of intangible assets | 13 years 7 months 6 days | |||
Non-competition agreements | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Weighted average life of intangible assets | 4 years 1 month 6 days | |||
Trade names | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Weighted average life of intangible assets | 13 years 3 months 18 days | |||
Patents | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Weighted average life of intangible assets | 9 years | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Term on financing receivables | 30 days | |||
Lessee, lease, term of contract | 1 year | |||
Minimum | Internal Use Software | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Useful life of intangible assets | 3 years | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Term on financing receivables | 90 days | |||
Lessee, lease, term of contract | 10 years | |||
Maximum | Internal Use Software | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Useful life of intangible assets | 6 years | |||
Forecast | Subsequent Event | Minimum | ASU 2016-13 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change related to adoption | $ 1 | |||
Forecast | Subsequent Event | Maximum | ASU 2016-13 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of change related to adoption | $ 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 4,880 | $ 3,534 | $ 2,622 |
Charged to expense | 1,068 | 3,601 | 454 |
Uncollectible accounts written off, net of recoveries | (2,118) | (2,255) | |
Uncollectible accounts written off, net of recoveries | 457 | ||
Balance at end of period | $ 3,830 | $ 4,880 | $ 3,534 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 3 years |
Office equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 5 years |
Office equipment and furniture | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 7 years |
Minimum | Software, including internal-use software | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 1 year |
Maximum | Software, including internal-use software | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 5 years |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||||
Right of use assets, net | $ 51,159 | |||
Lease liabilities, net | 55,358 | |||
Build-to-suit financing lease assets | $ 37,224 | $ 36,837 | $ 82,933 | |
ASU 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Right of use assets, net | $ 39,400 | |||
Lease liabilities, net | 41,500 | |||
Lease, right-of-use assets (liabilities), net | (2,100) | |||
Cumulative effect of change related to adoption | 159 | |||
Build-to-suit financing lease assets | 1,000 | |||
Operating lease, impairment loss | 500 | |||
Operating lease, deferred tax effect | 300 | |||
Retained Earnings | ASU 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Cumulative effect of change related to adoption | $ 159 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating leases: | |
Right of use assets | $ 50,668 |
Finance leases: | |
Right of use assets, cost | 815 |
Less: Accumulated amortization | (324) |
Right of use assets, net | 491 |
Total right of use assets, net | 51,159 |
Current: | |
Operating | 9,107 |
Finance | 176 |
Non-current: | |
Operating | 45,728 |
Finance | 347 |
Total lease liabilities | $ 55,358 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 10,725 |
Variable lease cost | 1,645 |
Short-term lease cost | 1,871 |
Finance lease cost: | |
Amortization of right of use assets | 91 |
Interest on lease liabilities | 25 |
Total finance lease cost | 116 |
Less: Sublease income | (268) |
Total lease cost | $ 14,089 |
Leases - Average Lease Terms an
Leases - Average Lease Terms and Discount Rates (Details) | Dec. 31, 2019 |
Weighted-average remaining lease term (years) | |
Operating leases | 6 years 9 months 14 days |
Finance leases | 2 years 11 months 23 days |
Weighted-average discount rate | |
Operating leases | 6.61% |
Finance leases | 7.27% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 8,649 |
Operating cash flows from finance leases | 129 |
Total | $ 8,778 |
Leases - Aggregate Future Lease
Leases - Aggregate Future Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating | ||
2020 | $ 11,477 | |
2021 | 12,222 | |
2022 | 10,551 | |
2023 | 7,975 | |
2024 | 6,531 | |
Thereafter | 20,961 | |
Total lease payments | 69,717 | |
Less: Interest | (14,882) | |
Present value of lease liabilities | 54,835 | |
Finance | ||
2020 | 204 | |
2021 | 204 | |
2022 | 133 | |
2023 | 29 | |
2024 | 9 | |
Thereafter | 0 | |
Total lease payments | 579 | |
Less: Interest | (56) | |
Present value of lease liabilities | $ 523 | |
Operating | ||
2019 | $ 6,383 | |
2020 | 5,017 | |
2021 | 4,422 | |
2022 | 3,245 | |
2023 | 2,068 | |
Thereafter | 1,966 | |
Total lease payments | $ 23,101 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Capitalized contract cost, amortization | $ 300,000 | $ 400,000 | |||
Capitalized contract cost, impairment loss | $ 1,300,000 | 0 | 1,300,000 | ||
Costs to fulfill | 1,152,000 | 1,238,000 | 1,152,000 | ||
Contract liabilities | 17,614,000 | 9,568,000 | 17,614,000 | $ 18,364,000 | $ 21,497,000 |
Cash received | $ 11,387,000 | 36,662,000 | 11,387,000 | ||
Revenue recognized | $ 44,708,000 | $ 11,850,000 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||||
Beginning balance | $ 152,158 | $ 199,946 | |||
Goodwill impairment | $ (18,400) | $ (27,900) | 0 | (46,319) | $ 0 |
Foreign exchange impact | 52 | (1,469) | |||
Ending balance | 152,158 | 152,210 | 152,158 | 199,946 | |
North America | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 152,158 | 170,685 | |||
Goodwill impairment | (18,400) | (18,432) | |||
Foreign exchange impact | 52 | (95) | |||
Ending balance | 152,158 | 152,210 | 152,158 | 170,685 | |
EMEA | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 0 | 21,815 | |||
Goodwill impairment | (20,800) | (20,778) | (75,400) | ||
Foreign exchange impact | 0 | (1,037) | |||
Ending balance | 0 | 0 | 0 | 21,815 | |
LATAM | |||||
Goodwill [Roll Forward] | |||||
Beginning balance | 0 | 7,447 | |||
Goodwill impairment | $ (7,100) | (7,109) | |||
Foreign exchange impact | 0 | (338) | |||
Ending balance | $ 0 | $ 0 | $ 0 | $ 7,447 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||||
Goodwill impairment | $ 18,400 | $ 27,900 | $ 0 | $ 46,319 | $ 0 |
EMEA | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | 20,800 | 20,778 | $ 75,400 | ||
LATAM | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | $ 7,100 | 7,109 | |||
North America | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | $ 18,400 | $ 18,432 |
Other Intangible Assets - Sched
Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 77,204 | $ 77,309 |
Less accumulated amortization and impairment: | (69,490) | (67,481) |
Intangible assets, net | 7,714 | 9,828 |
Customer lists | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 73,678 | 73,792 |
Less accumulated amortization and impairment: | $ (66,382) | (64,528) |
Weighted Average Life in Years | 13 years 7 months 6 days | |
Non-competition agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 959 | 950 |
Less accumulated amortization and impairment: | $ (959) | (950) |
Weighted Average Life in Years | 4 years 1 month 6 days | |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 2,510 | 2,510 |
Less accumulated amortization and impairment: | $ (2,098) | (1,956) |
Weighted Average Life in Years | 13 years 3 months 18 days | |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 57 | 57 |
Less accumulated amortization and impairment: | $ (51) | $ (47) |
Weighted Average Life in Years | 9 years |
Other Intangible Assets - Narra
Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 2,200 | $ 3,600 | $ 5,000 | |
Intangible and other asset impairments | $ 13,800 | $ 0 | $ 18,121 | $ 0 |
LATAM | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible and other asset impairments | 600 | |||
EMEA | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible and other asset impairments | 13,200 | |||
Customer lists | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible and other asset impairments | $ 13,800 |
Other Intangible Assets - Sch_2
Other Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 2,024 | |
2021 | 1,784 | |
2022 | 1,408 | |
2023 | 962 | |
2024 | 745 | |
Thereafter | 791 | |
Intangible assets, net | $ 7,714 | $ 9,828 |
Restructuring Activities and _3
Restructuring Activities and Charges - Narrative (Details) $ in Thousands | Feb. 21, 2019 | Dec. 14, 2015USD ($)employee | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Feb. 24, 2020USD ($) | Aug. 10, 2018USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related cost, extension period | 2 years | |||||||||
Restructuring charges | $ 2,892 | $ 10,524 | $ 15,918 | $ 6,031 | $ 0 | |||||
Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Non-cash settlements / adjustments | $ 400 | |||||||||
Restructuring charges | 15,918 | 6,031 | $ 21,900 | |||||||
Restructuring Plan, 2015 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $ 6,700 | |||||||||
Expected number of positions eliminated | employee | 100 | |||||||||
Employee Severance and Related Benefits | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 5,073 | 3,257 | ||||||||
Employee Severance and Related Benefits | Restructuring Plan, 2015 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $ 5,600 | |||||||||
Lease and Contract Termination Costs | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 920 | 512 | ||||||||
Lease and Contract Termination Costs | Restructuring Plan, 2015 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $ 1,100 | |||||||||
Compensation Realignment and Other Retention | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | $ 5,208 | $ 0 | ||||||||
Minimum | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, expected cost | 20,000 | |||||||||
Maximum | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, expected cost | $ 25,000 | |||||||||
Subsequent Event | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Non-cash settlements / adjustments | $ 500 | |||||||||
Subsequent Event | Minimum | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, expected cost | 35,000 | |||||||||
Subsequent Event | Minimum | Employee Severance and Related Benefits | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, expected cost | 9,000 | |||||||||
Subsequent Event | Minimum | Lease and Contract Termination Costs | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, expected cost | 8,000 | |||||||||
Subsequent Event | Minimum | Compensation Realignment and Other Retention | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, expected cost | 18,000 | |||||||||
Subsequent Event | Maximum | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, expected cost | 45,000 | |||||||||
Subsequent Event | Maximum | Employee Severance and Related Benefits | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, expected cost | 12,000 | |||||||||
Subsequent Event | Maximum | Lease and Contract Termination Costs | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, expected cost | 10,000 | |||||||||
Subsequent Event | Maximum | Compensation Realignment and Other Retention | Restructuring Plan, 2018 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, expected cost | $ 23,000 |
Restructuring Activities and _4
Restructuring Activities and Charges - Schedule of Restructuring Charges (Details) - USD ($) $ in Thousands | Dec. 14, 2015 | Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 |
Restructuring Reserve [Roll Forward] | |||||||
Charges | $ 2,892 | $ 10,524 | $ 15,918 | $ 6,031 | $ 0 | ||
Restructuring Plan, 2018 | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 1,349 | 1,349 | 0 | ||||
Charges | 15,918 | 6,031 | $ 21,900 | ||||
Prepayments | 199 | ||||||
Cash payments | (12,714) | (4,377) | |||||
Non-cash settlements/adjustments | (169) | (305) | |||||
Ending balance | 4,583 | 1,349 | 0 | 4,583 | |||
Restructuring Plan, 2018 | Employee Severance and Related Benefits | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 358 | 358 | 0 | ||||
Charges | 5,073 | 3,257 | |||||
Prepayments | 0 | ||||||
Cash payments | (4,763) | (2,594) | |||||
Non-cash settlements/adjustments | (2) | (305) | |||||
Ending balance | 666 | 358 | 0 | 666 | |||
Restructuring Plan, 2018 | Lease and Contract Termination Costs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 286 | 286 | 0 | ||||
Charges | 920 | 512 | |||||
Prepayments | 0 | ||||||
Cash payments | (1,016) | (226) | |||||
Non-cash settlements/adjustments | (167) | 0 | |||||
Ending balance | 23 | 286 | 0 | 23 | |||
Restructuring Plan, 2018 | Compensation Realignment and Other Retention | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 0 | 0 | 0 | ||||
Charges | 5,208 | 0 | |||||
Prepayments | 199 | ||||||
Cash payments | (1,771) | 0 | |||||
Non-cash settlements/adjustments | 0 | 0 | |||||
Ending balance | 3,636 | 0 | 0 | 3,636 | |||
Restructuring Plan, 2018 | Other | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 705 | 705 | 0 | ||||
Charges | 4,717 | 2,262 | |||||
Prepayments | 0 | ||||||
Cash payments | (5,164) | (1,557) | |||||
Non-cash settlements/adjustments | 0 | 0 | |||||
Ending balance | 258 | 705 | $ 0 | 258 | |||
Restructuring Plan, 2015 | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 486 | 486 | |||||
Charges | $ 6,700 | ||||||
Cash payments | (364) | ||||||
Ending balance | 122 | 486 | 122 | ||||
Restructuring Plan, 2015 | Employee Severance and Related Benefits | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 486 | 486 | |||||
Charges | 5,600 | ||||||
Cash payments | (364) | ||||||
Ending balance | 122 | 486 | 122 | ||||
Restructuring Plan, 2015 | Lease and Contract Termination Costs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 0 | 0 | |||||
Charges | $ 1,100 | ||||||
Cash payments | 0 | ||||||
Ending balance | 0 | 0 | 0 | ||||
Restructuring Plan, 2015 | Other | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | $ 0 | 0 | |||||
Cash payments | 0 | ||||||
Ending balance | $ 0 | $ 0 | $ 0 |
Restructuring Activities and _5
Restructuring Activities and Charges - Schedule of Restructuring Costs by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 17 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 2,892 | $ 10,524 | $ 15,918 | $ 6,031 | $ 0 | |
Restructuring Plan, 2018 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 15,918 | 6,031 | $ 21,900 | |||
Operating Segments | North America | Restructuring Plan, 2018 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 8,466 | 882 | ||||
Operating Segments | LATAM | Restructuring Plan, 2018 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 515 | 368 | ||||
Operating Segments | EMEA | Restructuring Plan, 2018 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 1,735 | 2,496 | ||||
Other | Restructuring Plan, 2018 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 5,202 | $ 2,285 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||
Total Property and Equipment, Gross | $ 119,051 | $ 155,562 | |
Less: Accumulated depreciation | (81,827) | (72,629) | |
Property and Equipment, Net | 37,224 | $ 36,837 | 82,933 |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total Property and Equipment, Gross | 14,249 | 12,258 | |
Software, including internal-use software | |||
Property, Plant and Equipment [Line Items] | |||
Total Property and Equipment, Gross | 89,072 | 82,426 | |
Office equipment and furniture | |||
Property, Plant and Equipment [Line Items] | |||
Total Property and Equipment, Gross | 7,288 | 7,315 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total Property and Equipment, Gross | 1,666 | 49,169 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total Property and Equipment, Gross | $ 6,776 | $ 4,394 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 10.1 | $ 9.4 | $ 8.4 | ||
Long-lived asset impairment charge | $ 3 | ||||
Property, plant and equipment, disposals | $ 0.4 | ||||
Build to suit property, plant and equipment, net | 48.5 | ||||
Financing obligation, noncurrent | $ 47 | ||||
EMEA | Legacy ERP system | |||||
Property, Plant and Equipment [Line Items] | |||||
Long-lived asset impairment charge | $ 3 |
Revolving Credit Facilities - N
Revolving Credit Facilities - Narrative (Details) | Jul. 16, 2019USD ($) | Feb. 22, 2016USD ($) | Aug. 02, 2010USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Revolving Credit Facility | China | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving commitment amount | $ 1,000,000 | $ 5,000,000 | |||||
Unused capacity | $ 500,000 | ||||||
Revolving Credit Facility | Base Rate | China | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 110.00% | ||||||
Revolving Credit Facility | Credit Agreement Due 2019 | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving commitment amount | $ 175,000,000 | ||||||
Revolving Credit Facility | Credit Agreement Due 2020 | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving commitment amount | 160,000,000 | ||||||
Revolving Credit Facility | Credit Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Increased current borrowing capacity | $ 50,000,000 | ||||||
Ratio of indebtedness to net capital | 3 | 3.50 | |||||
Maximum leverage ratio | 3 | 4.75 | 4.50 | ||||
Conversion ratio | 5 | 5 | |||||
Minimum leverage ratio | 5 | 3.50 | 4 | ||||
Revolving Credit Facility | ABL Credit Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving commitment amount | 105,000,000 | ||||||
Write off of deferred debt issuance cost | 100,000 | ||||||
Additional increase to borrowing capacity | 20,000,000 | ||||||
ABL Credit Facility outstanding | 60,727,000 | ||||||
Letters of credit outstanding | 1,700,000 | ||||||
Unamortized discount and deferred financing costs | 300,000 | ||||||
Deferred financing costs | 1,700,000 | ||||||
Amortization of deferred financing costs | 200,000 | ||||||
Interest expense | 100,000 | ||||||
Revolving Credit Facility | ABL Credit Agreement | US | |||||||
Line of Credit Facility [Line Items] | |||||||
ABL Credit Facility outstanding | 60,100,000 | ||||||
Revolving Credit Facility | ABL Credit Agreement | UK | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving commitment amount | 15,000,000 | ||||||
ABL Credit Facility outstanding | $ 600,000 | ||||||
Bridge Loan | ABL Credit Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving commitment amount | 10,500,000 | ||||||
Letter of Credit | ABL Credit Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving commitment amount | $ 10,000,000 | ||||||
Minimum | Revolving Credit Facility | Credit Agreement | Base Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
Minimum | Revolving Credit Facility | Credit Agreement | Eurodollar | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
Minimum | Revolving Credit Facility | ABL Credit Agreement | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
Minimum | Revolving Credit Facility | ABL Credit Agreement | Base Rate | US | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
Minimum | Revolving Credit Facility | ABL Credit Agreement | Base Rate | UK | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
Maximum | Revolving Credit Facility | Credit Agreement | Base Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 2.25% | ||||||
Maximum | Revolving Credit Facility | Credit Agreement | Eurodollar | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 3.25% | ||||||
Maximum | Revolving Credit Facility | ABL Credit Agreement | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 2.50% | ||||||
Maximum | Revolving Credit Facility | ABL Credit Agreement | Base Rate | US | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
Maximum | Revolving Credit Facility | ABL Credit Agreement | Base Rate | UK | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 2.50% |
Revolving Credit Facilities - C
Revolving Credit Facilities - Change in Fair Value of ABL Embedded Derivative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Change in fair value | $ 176 | $ 0 | $ 0 |
ABL Credit Agreement | Revolving Credit Facility | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | 0 | ||
Issuance of associated debt (July 16, 2019) | 599 | ||
Change in fair value | (102) | ||
Ending balance | $ 497 | $ 0 |
Revolving Credit Facilities - S
Revolving Credit Facilities - Summary of ABL Credit Facility (Details) - ABL Credit Agreement - Revolving Credit Facility - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
ABL Credit Facility outstanding | $ 60,727 | |
Less: Current portion of ABL Credit Facility for UK Borrowings | (593) | $ (142,736) |
Long-term portion of Credit Facility | 60,134 | |
Less: ABL Embedded Derivative Discount | (545) | |
ABL Embedded Derivative Liability | 497 | |
Total Revolving credit facility - non-current | $ 60,086 | $ 0 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Oct. 01, 2020USD ($) | Jul. 16, 2019USD ($)day$ / sharesshares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||
Debt instrument, converted debt, interest rate | 2.49% | |||
Initial Warrant | ||||
Debt Instrument [Line Items] | ||||
Number of warrants or rights exercisable (in shares) | shares | 1,335,337 | |||
Class of warrant or right, exercise price (in usd per share) | $ / shares | $ 0.01 | |||
Warrants and rights outstanding, exercise period after triggering event | 10 days | |||
Term Loan Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Warrant, exercise price of common stock | 4.25 | |||
Debt instrument, covenant, leverage ratio, maximum | 4 | |||
Debt instrument, convertible, threshold trading days | day | 5 | |||
Amortization of debt discount | $ 400,000 | |||
Interest expense | 300,000 | |||
Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
ABL Credit Facility outstanding | 97,500,000 | |||
Original issue discount | 7,702,000 | |||
Term Loan Facility | Term Loan Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Revolving commitment amount | $ 100,000,000 | |||
Debt instrument, periodic payment, principal | $ 1,300,000 | |||
ABL Credit Facility outstanding | $ 97,500,000 | |||
Original issue discount | 8,500,000 | |||
Debt issuance costs | $ 3,700,000 | |||
Term Loan Facility | Term Loan Credit Agreement | Minimum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 6.25% | |||
Term Loan Facility | Term Loan Credit Agreement | Minimum | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 5.25% | |||
Term Loan Facility | Term Loan Credit Agreement | Maximum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 10.75% | |||
Term Loan Facility | Term Loan Credit Agreement | Maximum | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 9.75% | |||
Forecast | Term Loan Facility | Term Loan Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, periodic payment, principal | $ 2,500,000 |
Long-Term Debt - Change in Fair
Long-Term Debt - Change in Fair Value of Term Loan Embedded Derivative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Change in fair value | $ 176 | $ 0 | $ 0 |
Term Loan Credit Agreement | Term Loan Facility | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | 0 | ||
Issuance of associated debt (July 16, 2019) | 481 | ||
Change in fair value | (74) | ||
Ending balance | $ 407 | $ 0 |
Long-Term Debt - Change in Fa_2
Long-Term Debt - Change in Fair Value of Initial Warrant (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Change in fair value | $ (2,233) | $ 0 | $ 0 |
Initial Warrant | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 0 | ||
Issuance of initial warrant (July 16, 2019) | 4,304 | ||
Change in fair value | 2,233 | ||
Ending balance | $ 6,537 | $ 0 |
Long-Term Debt - Summary of Ter
Long-Term Debt - Summary of Term Loan Credit Facility (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Term Loan Credit Facility outstanding | $ 97,500 | |
Less: Current portion of Term Loan Credit Facility | (7,500) | |
Long-term portion of Credit Facility | 90,000 | |
Less: Original Issue Discount | (7,702) | |
Term Loan Embedded Derivative Liability | 407 | |
Total Term Loan - Non-current | 89,242 | |
Initial Warrant | ||
Debt Instrument [Line Items] | ||
Initial Warrant Liability | 6,537 | $ 0 |
Initial Warrant | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Initial Warrant Liability | $ 6,537 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) € in Millions, $ in Millions | 1 Months Ended | ||||||
Jan. 31, 2014USD ($) | Jan. 31, 2014EUR (€) | Dec. 31, 2013USD ($) | Dec. 31, 2013EUR (€) | Sep. 30, 2015USD ($) | Sep. 30, 2015EUR (€) | Feb. 28, 2014EUR (€) | |
Wrongful Termination Lawsuit - Productions Graphics | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought | $ 1 | € 0.7 | |||||
Contingent consideration | $ 9.4 | € 7.1 | € 7.1 | ||||
Fixed consideration | 8 | 5.8 | |||||
Maximum consideration | $ 37.6 | € 34.5 | |||||
Employment Arbitration Claim | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought | $ 0.7 | € 0.6 |
Income Taxes - Components of In
Income Taxes - Components of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense (benefit): | ||||||||||||||
Federal | $ 795 | $ (781) | $ 3,037 | |||||||||||
State | (13) | 180 | 53 | |||||||||||
Foreign | 3,797 | 4,558 | 4,094 | |||||||||||
Total current income tax expense | 4,579 | 3,957 | 7,184 | |||||||||||
Deferred income tax expense (benefit): | ||||||||||||||
Federal | (565) | (3,385) | 1,984 | |||||||||||
State | 840 | (90) | 1,556 | |||||||||||
Foreign | (1,154) | (1,129) | 533 | |||||||||||
Total deferred income tax expense | (879) | (4,604) | 4,073 | |||||||||||
Provision (benefit) for income taxes | $ (1,250) | $ 2,468 | $ (1,414) | $ (1,536) | $ (243) | $ 625 | $ 506 | $ 1,053 | $ 1,131 | $ (197) | $ 889 | $ 3,700 | $ (647) | $ 11,257 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||||||||||||
Tax (benefit) provision at U.S. federal income tax rate | $ (1,342) | $ (16,239) | $ 9,506 | |||||||||||
State income taxes, net of federal income tax effect | (775) | (307) | 883 | |||||||||||
Federal, state and international deferred tax rate change | 1,222 | 1,135 | (4,907) | |||||||||||
Transition tax | 0 | (924) | 5,323 | |||||||||||
Effect of non-US operations | (1,859) | (2,424) | (2,228) | |||||||||||
Nontaxable contingent liability fair value changes and goodwill impairment | 0 | 11,254 | 237 | |||||||||||
Research and development credit | (202) | (40) | (38) | |||||||||||
Change in valuation allowances | (98) | 3,973 | 2,103 | |||||||||||
Prior year provision to return adjustment | (57) | 942 | (581) | |||||||||||
Write-off of deferred taxes and tax receivables | 1,961 | 431 | 70 | |||||||||||
Nondeductible expense and other | 904 | 428 | 889 | |||||||||||
Tax reform global intangible low-taxed income | 3,178 | 1,124 | 0 | |||||||||||
Tax reform BEAT | 768 | 0 | 0 | |||||||||||
Provision (benefit) for income taxes | $ (1,250) | $ 2,468 | $ (1,414) | $ (1,536) | $ (243) | $ 625 | $ 506 | $ 1,053 | $ 1,131 | $ (197) | $ 889 | $ 3,700 | $ (647) | $ 11,257 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Inventory reserve | $ 271 | $ 992 |
Other reserves and allowances | 7,870 | 3,470 |
Income tax basis in excess of financial statement basis in intangible assets | 509 | 1,085 |
Deductible stock-based compensation | 2,829 | 3,257 |
ASC 842 lease liability | 8,989 | |
Net operating loss carryforward | 17,100 | 19,409 |
Tax credit carryforwards | 402 | 500 |
Deferred tax assets | 37,970 | 28,713 |
Valuation allowance | (13,809) | (13,946) |
Net deferred tax assets | 24,161 | 14,767 |
Deferred tax liabilities: | ||
Prepaid & other expenses | (184) | (284) |
Fixed assets | (3,735) | (4,826) |
Intangible assets | (17,762) | (16,067) |
ASC 842 right of use asset | (8,351) | |
Deferred tax liabilities | (30,032) | (21,177) |
Net deferred tax liability | $ (5,871) | $ (6,410) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | ||||
Increase in valuation allowance | $ (100) | $ 3,200 | ||
Valuation allowance | 13,809 | 13,946 | ||
Change in valuation allowances | (98) | 3,973 | $ 2,103 | |
Limitation on operating loss carryforward | 200 | |||
Unrecognized tax benefits | 279 | 522 | 499 | $ 517 |
Uncertain tax positions, reversal | $ 300 | |||
Unrecognized tax benefits that would impact effective tax rate, percent | 3.80% | |||
Income (loss) from foreign operations | $ 14,900 | (31,600) | $ 14,400 | |
Grant of income tax exemption period | 20 years | |||
Deferred tax liabilities, undistributed foreign earnings | $ 2,900 | $ 2,000 | ||
Undistributed earnings for foreign operations | $ 46,700 | |||
Benefit of tax exemptions on diluted earnings per share | $ 0.05 | $ 0.04 | ||
Domestic Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards | $ 10,800 | |||
Operating loss carryforward, not subject to expiration | 10,400 | |||
Operating loss carryforwards, acquired in business combination | 400 | |||
State and Local Jurisdiction | ||||
Income Tax Disclosure [Line Items] | ||||
Valuation allowance | 1,700 | |||
Operating loss carryforwards | 1,800 | |||
Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Increase in valuation allowance | (1,800) | |||
Chile tax authority | Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards | 600 | |||
China tax authority | Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards | 600 | |||
Czech Republic tax authority | Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards | 500 | |||
France tax authority | Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards | 7,300 | |||
Germany tax authority | Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards | 1,500 | |||
Italy tax authority | Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards | 300 | |||
Japan tax authority | Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards | 500 | |||
Mexico tax authority | Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards | $ 100 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Uncertain tax positions | |||
Beginning balance | $ 522 | $ 499 | $ 517 |
Additions (subtractions) based on tax positions related to the current year | 0 | 0 | (35) |
Additions (subtractions) based on tax positions related to the prior year | (257) | 0 | 0 |
Interest and penalties | 14 | 23 | 17 |
Statute of limitations lapses | 0 | 0 | 0 |
Ending balance | $ 279 | $ 522 | $ 499 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Fair Value Assumptions (Details) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Stock price (in USD per share) | $ 5.51 |
Exercise price (in USD per share) | $ 0.01 |
Time until expiration (years) | 4 years 6 months 14 days |
Expected volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrant liability, measurement input | 0.530 |
Risk-free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrant liability, measurement input | 0.0167 |
Expected dividend yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrant liability, measurement input | 0 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Fair Value Measurements (Details) - Fair Value, Recurring $ in Thousands | Dec. 31, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrant | $ 6,537 |
Total | 228,448 |
Significant Other Observable Inputs (Level 2) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrant | 0 |
Total | 221,007 |
Significant Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Warrant | 6,537 |
Total | 7,441 |
Term loan facility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Line of credit, fair value | 91,980 |
Derivative | 407 |
Term loan facility | Significant Other Observable Inputs (Level 2) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Line of credit, fair value | 91,980 |
Derivative | 0 |
Term loan facility | Significant Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Line of credit, fair value | 0 |
Derivative | 407 |
ABL Credit Agreement | Revolving credit facility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Line of credit, fair value | 129,027 |
Derivative | 497 |
ABL Credit Agreement | Revolving credit facility | Significant Other Observable Inputs (Level 2) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Line of credit, fair value | 129,027 |
Derivative | 0 |
ABL Credit Agreement | Revolving credit facility | Significant Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Line of credit, fair value | 0 |
Derivative | $ 497 |
(Loss) Earnings Per Share - Nar
(Loss) Earnings Per Share - Narrative (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2017shares | |
Earnings Per Share [Abstract] | |
Shares excluded from EPS (in shares) | 1.1 |
(Loss) Earnings Per Share - Sch
(Loss) Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||||||
Net (loss) income | $ (6,461) | $ (1,062) | $ (508) | $ (2,044) | $ (29,390) | $ (45,120) | $ (299) | $ (1,874) | $ (2,552) | $ (2,173) | $ (3,614) | $ (47,293) | $ (10,075) | $ (76,683) | $ 15,869 |
Weighted average number of shares outstanding (in shares) | 51,958 | 52,230 | 53,851 | ||||||||||||
Issuance of warrants (in shares) | 1,335 | 0 | 0 | ||||||||||||
Weighted average shares outstanding - basic (in shares) | 53,293 | 52,230 | 53,851 | ||||||||||||
Employee stock options and restricted common shares (in shares) | 0 | 0 | 1,093 | ||||||||||||
Weighted average shares outstanding - diluted (in shares) | 53,293 | 52,230 | 54,944 | ||||||||||||
Basic (loss) earnings per share (in USD per share) | $ (0.02) | $ (0.01) | $ (0.04) | $ (0.57) | $ (0.87) | $ (0.01) | $ (0.03) | $ (0.05) | $ (0.04) | $ (0.07) | $ (0.90) | $ (0.19) | $ (1.47) | $ 0.29 | |
Diluted (loss) earnings per share (in USD per share) | $ (0.02) | $ (0.01) | $ (0.04) | $ (0.57) | $ (0.87) | $ (0.01) | $ (0.03) | $ (0.05) | $ (0.04) | $ (0.07) | $ (0.90) | $ (0.19) | $ (1.47) | $ 0.29 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) | Nov. 02, 2016 | Feb. 12, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | May 04, 2017 |
Equity [Abstract] | |||||
Authorized share repurchase | $ 20,000,000 | $ 30,000,000 | |||
Stock repurchase program, extension period | 2 years | ||||
Term of share repurchase program | 2 years | ||||
Acquisition of treasury shares (in shares) | 2,667,732 | ||||
Value of shares repurchased | $ 25,598,000 | $ 10,976,000 | |||
Cost per share acquired (in USD per share) | $ 9.60 |
Stock-Based Compensation Plan -
Stock-Based Compensation Plan - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2014 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Jun. 30, 2016 | Dec. 31, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 6,300,000 | $ 5,300,000 | $ 6,800,000 | |||||
Income tax benefit from share-based compensation | 1,600,000 | $ 1,400,000 | $ 1,700,000 | |||||
Term of award | 6 years 4 months 24 days | 6 years 6 months | ||||||
Exercised | $ 68,000 | $ 1,000,000 | $ 1,300,000 | |||||
Grants in period (in USD per share) | $ 0 | $ 3.37 | $ 4.42 | |||||
Unrecognized stock-based compensation on options | $ 2,200,000 | |||||||
Period for recognition of compensation expense | 2 years 3 months 18 days | |||||||
Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 1,100,000 | $ 2,500,000 | $ 2,900,000 | |||||
Term of award | 10 years | |||||||
Share price (in USD per share) | $ 5.51 | $ 3.74 | $ 10.03 | |||||
Stock Option | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 4 years | |||||||
Stock Appreciation Rights (SARs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 800,000 | |||||||
Term of award | 6 years 3 months 18 days | |||||||
Unrecognized stock-based compensation on options | $ 4,000,000 | |||||||
Period for recognition of compensation expense | 3 years 1 month 6 days | |||||||
Granted (in USD per share) | $ 2.60 | $ 0 | $ 0 | |||||
Stock Appreciation Rights (SARs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 4 years | |||||||
Stock Appreciation Rights (SARs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Term of award | 10 years | |||||||
Restricted Share | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 800,000 | $ 2,500,000 | $ 3,500,000 | |||||
Unrecognized stock-based compensation on options | $ 1,000,000 | |||||||
Period for recognition of compensation expense | 1 year 8 months 12 days | |||||||
Granted (in USD per share) | $ 0 | $ 9.37 | $ 11 | |||||
Equity instruments other than options, vested in period, fair value | $ 600,000 | $ 3,000,000 | $ 4,400,000 | |||||
Restricted Share | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 1 year | |||||||
Restricted Share | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 4 years | |||||||
Restricted Share Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 3,100,000 | $ 700,000 | ||||||
Unrecognized stock-based compensation on options | $ 6,700,000 | |||||||
Period for recognition of compensation expense | 2 years 7 months 6 days | |||||||
Granted (in USD per share) | $ 3.62 | $ 7.74 | $ 0 | |||||
Equity instruments other than options, vested in period, fair value | $ 800,000 | $ 100,000 | $ 0 | |||||
Performance Share Units (PSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | 500,000 | $ (400,000) | $ 400,000 | |||||
Unrecognized stock-based compensation on options | $ 1,500,000 | |||||||
Period for recognition of compensation expense | 2 years 2 months 12 days | |||||||
Granted (in USD per share) | $ 3.39 | $ 7.36 | $ 11.10 | |||||
Performance Share Units (PSUs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Target vesting percentage | 0.00% | |||||||
Performance Share Units (PSUs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Target vesting percentage | 200.00% | |||||||
2006 Stock Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares authorized (in shares) | 2,900,000 | 1,035,000 | ||||||
Additional shares authorized (in shares) | 10,750,000 | 7,850,000 | ||||||
2006 Stock Incentive Plan | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Additional shares authorized (in shares) | 10,750,000 | |||||||
2006 Stock Incentive Plan | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Additional shares authorized (in shares) | 11,785,000 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plan - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Outstanding Options | |||
Beginning balance, Outstanding (in shares) | 4,111 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (27) | ||
Forfeited (in shares) | (1,923) | ||
Ending balance, Outstanding (in shares) | 2,161 | 4,111 | |
Options vested and exercisable (in shares) | 1,385 | ||
Weighted- Average Exercise Price | |||
Beginning balance, Outstanding (in USD per share) | $ 8.53 | ||
Granted (in USD per share) | 0 | ||
Exercised (in USD per share) | 2.36 | ||
Forfeited (in USD per share) | 8.55 | ||
Ending balance, Outstanding (in USD per share) | 8.59 | $ 8.53 | |
Options vested and exercisable (in USD per share) | $ 8.56 | ||
Aggregate Intrinsic Value | |||
Beginning balance, Outstanding | $ 37 | ||
Granted | 0 | ||
Exercised | 68 | $ 1,000 | $ 1,300 |
Forfeited | 5 | ||
Ending balance, Outstanding | 2 | $ 37 | |
Options vested and exercisable | $ 2 | ||
Weighted average remaining contractual life, vested | 5 years 10 months 13 days | ||
Weighted average remaining contractual life, exercisable | 4 years 6 months 21 days |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plan - Option Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life | 6 years 4 months 24 days | 6 years 6 months | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.76% | 1.98% | |
Volatility | 35.00% | 36.00% | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 3.15% | 2.34% | |
Volatility | 36.20% | 38.00% | |
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Risk-free interest rate | 1.69% | ||
Expected life | 6 years 3 months 18 days | ||
Volatility | 46.70% | ||
Stock Appreciation Rights (SARs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 10 years |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plan - SAR Activity (Details) - Stock Appreciation Rights (SARs) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Outstanding SARs | |
Beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 1,449 |
Exercised (in shares) | shares | 0 |
Forfeited/Expired (in shares) | shares | 0 |
Ending balance (in shares) | shares | 1,449 |
Vested and exercisable (in shares) | shares | 0 |
Weighted- Average Exercise Price | |
Beginning balance (in USD per share) | $ / shares | $ 0 |
Granted (in USD per share) | $ / shares | 3.64 |
Exercised (in USD per share) | $ / shares | 0 |
Forfeited/Expired (in USD per share) | $ / shares | 0 |
Ending balance (in USD per share) | $ / shares | 3.64 |
Vested and exercisable (in USD per share) | $ / shares | $ 0 |
Aggregate Intrinsic Value | |
Beginning balance | $ | $ 0 |
Granted | $ | 2,716 |
Exercised | $ | 0 |
Forfeited/Expired | $ | 0 |
Ending balance | $ | 2,716 |
Vested and exercisable | $ | $ 0 |
Outstanding weighted average contractual life (in years) | 9 years 4 months 24 days |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plan - Restricted Share Activity (Details) - Restricted Share - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested shares, beginning balance (in shares) | 447 | ||
Granted (in shares) | 0 | ||
Vested and transferred to unrestricted common stock (in shares) | (158) | ||
Forfeited (in shares) | (122) | ||
Nonvested shares, ending balance (in shares) | 167 | 447 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested shares, beginning balance (in USD per share) | $ 9.13 | ||
Granted (in USD per share) | 0 | $ 9.37 | $ 11 |
Vested and transferred to unrestricted common stock (in USD per share) | 8.67 | ||
Forfeited (in USD per share) | 9.07 | ||
Nonvested shares, ending balance (in USD per share) | $ 9.61 | $ 9.13 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plan - Restricted Share Unit Activity (Details) - Restricted Share Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested shares, beginning balance (in shares) | 552 | ||
Granted (in shares) | 1,893 | ||
Vested and transferred to unrestricted common stock (in shares) | (204) | ||
Forfeited (in shares) | (109) | ||
Nonvested shares, ending balance (in shares) | 2,132 | 552 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested shares, beginning balance (in USD per share) | $ 7.74 | ||
Granted (in USD per share) | 3.62 | $ 7.74 | $ 0 |
Vested and transferred to unrestricted common stock (in USD per share) | 7.76 | ||
Forfeited (in USD per share) | 5.64 | ||
Nonvested shares, ending balance (in USD per share) | $ 4.16 | $ 7.74 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plan - Performance Share Unit Activity (Details) - Performance Share Units (PSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested shares, beginning balance (in shares) | 293 | ||
Granted (in shares) | 594 | ||
Vested (in shares) | 0 | ||
Forfeited (in shares) | (86) | ||
Nonvested shares, ending balance (in shares) | 801 | 293 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested shares, beginning balance (in USD per share) | $ 8.72 | ||
Granted (in USD per share) | 3.39 | $ 7.36 | $ 11.10 |
Vested (in USD per share) | 0 | ||
Forfeited (in USD per share) | 10.41 | ||
Nonvested shares, ending balance (in USD per share) | $ 4.58 | $ 8.72 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Required period of service | 30 days | ||
Contribution to 401(k) | $ 1.3 | $ 0 | $ 1 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Arthur J. Gallagher & Co. | |||
Related Party Transaction [Line Items] | |||
Print procurement services | $ 1.8 | $ 1.6 | $ 1.9 |
Amount billed to the Company for consideration of services | 0.3 | 0.1 | 0.1 |
Net amount receivable from related parties | 0.2 | 0.3 | |
Enova Inc. | |||
Related Party Transaction [Line Items] | |||
Print procurement services | 16.1 | 10.1 | $ 0.1 |
Net amount receivable from related parties | $ 4.6 | $ 2 |
Business Segments - Narrative (
Business Segments - Narrative (Details) - segment | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Number of segments | 3 | |
Segment Concentration Risk | North America | Revenue from Contract with Customer, Segment Benchmark | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 71.30% | 69.30% |
Business Segments - Revenue by
Business Segments - Revenue by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from third parties | $ 1,157,834 | $ 1,121,106 | $ 1,138,370 | ||||||||||||
Revenue from other segments | 0 | 0 | 0 | ||||||||||||
Total revenue | $ 319,074 | $ 287,688 | $ 283,861 | $ 267,211 | $ 293,977 | $ 270,844 | $ 281,988 | $ 274,297 | $ 551,072 | $ 556,285 | $ 838,760 | $ 827,129 | 1,157,834 | 1,121,106 | 1,138,370 |
Adjusted EBITDA | 49,045 | 27,315 | 57,494 | ||||||||||||
Capital expenditures | $ 10,135 | 13,378 | 11,263 | 12,483 | |||||||||||
Operating Segments | North America | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from third parties | 826,355 | 777,202 | 780,520 | ||||||||||||
Revenue from other segments | 4,463 | 3,200 | 5,469 | ||||||||||||
Total revenue | 830,818 | 780,402 | 785,989 | ||||||||||||
Adjusted EBITDA | 85,662 | 61,250 | 73,790 | ||||||||||||
Capital expenditures | 10,525 | 8,649 | 8,610 | ||||||||||||
Operating Segments | EMEA | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from third parties | 250,719 | 260,729 | 265,669 | ||||||||||||
Revenue from other segments | 9,302 | 9,500 | 13,444 | ||||||||||||
Total revenue | 260,021 | 270,229 | 279,113 | ||||||||||||
Adjusted EBITDA | 12,051 | 6,355 | 15,293 | ||||||||||||
Capital expenditures | 2,815 | 2,609 | 3,873 | ||||||||||||
Operating Segments | LATAM | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from third parties | 80,760 | 83,175 | 92,181 | ||||||||||||
Revenue from other segments | 22 | 217 | 1,693 | ||||||||||||
Total revenue | 80,782 | 83,392 | 93,874 | ||||||||||||
Adjusted EBITDA | 1,943 | 3,082 | 4,278 | ||||||||||||
Capital expenditures | 38 | 5 | 0 | ||||||||||||
Other | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenue from third parties | 0 | 0 | 0 | ||||||||||||
Revenue from other segments | (13,787) | (12,917) | (20,606) | ||||||||||||
Total revenue | (13,787) | (12,917) | (20,606) | ||||||||||||
Adjusted EBITDA | (50,611) | (43,372) | (35,867) | ||||||||||||
Capital expenditures | $ 0 | $ 0 | $ 0 |
Business Segments - EBITDA and
Business Segments - EBITDA and Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||||||||||||||
Adjusted EBITDA | $ 49,045 | $ 27,315 | $ 57,494 | ||||||||||||
Depreciation and amortization | (12,328) | (12,988) | (13,390) | ||||||||||||
Stock-based compensation - equity classified awards | (5,533) | (5,302) | (6,820) | ||||||||||||
Stock-based compensation - SARs market-to-market | (748) | 0 | 0 | ||||||||||||
Restructuring charges | $ (2,892) | $ (10,524) | (15,918) | (6,031) | 0 | ||||||||||
Executive search fees | (80) | (235) | (454) | ||||||||||||
Professional fees related to control remediation | (1,130) | (2,430) | 0 | ||||||||||||
Sales and use tax audit | (25) | (113) | (203) | ||||||||||||
Other professional fees | (2,241) | (507) | 0 | ||||||||||||
Goodwill impairment | $ (18,400) | $ (27,900) | 0 | (46,319) | 0 | ||||||||||
Intangible and long-lived asset impairment | (13,800) | 0 | (18,121) | 0 | |||||||||||
Senior leadership transition and other employee-related costs | 0 | (1,410) | 0 | ||||||||||||
Obsolete retail inventory | 0 | (950) | 0 | ||||||||||||
Professional fees related to ASC 606 implementation | 0 | (1,092) | (829) | ||||||||||||
Business development realignment | 0 | 0 | (715) | ||||||||||||
Change in fair value of contingent consideration | 0 | 0 | (677) | ||||||||||||
Czech currency impact on procurement margin | 0 | 0 | (860) | ||||||||||||
Income (loss) from operations | $ 3,588 | 3,762 | $ 4,063 | $ (371) | (28,232) | (43,312) | $ 2,377 | $ 984 | $ 3,692 | $ 3,361 | 7,454 | $ (39,951) | 11,042 | (68,183) | 33,546 |
Interest income | 366 | 218 | 97 | ||||||||||||
Interest expense | (14,097) | (7,749) | (4,729) | ||||||||||||
Other, net | (1,735) | 279 | (440) | (161) | (1,896) | (3,686) | (1,616) | (1,788) | |||||||
(Loss) income before income taxes | (2,312) | 1,960 | (3,458) | (30,926) | (45,363) | 326 | (1,368) | (1,499) | (1,042) | (3,811) | (46,404) | (6,375) | (77,330) | 27,126 | |
(Benefit) provision for income tax | 1,250 | (2,468) | 1,414 | 1,536 | 243 | (625) | (506) | (1,053) | (1,131) | 197 | (889) | (3,700) | 647 | (11,257) | |
Net (loss) income | $ (6,461) | $ (1,062) | $ (508) | $ (2,044) | $ (29,390) | $ (45,120) | $ (299) | $ (1,874) | $ (2,552) | $ (2,173) | $ (3,614) | $ (47,293) | $ (10,075) | $ (76,683) | $ 15,869 |
Business Segments - Assets by S
Business Segments - Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | |||||||||
Total assets | $ 629,283 | $ 679,471 | $ 630,267 | $ 598,988 | $ 621,729 | $ 661,735 | $ 644,617 | $ 634,195 | $ 650,035 |
Operating Segments | North America | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total assets | 424,775 | 398,432 | |||||||
Operating Segments | EMEA | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total assets | 140,013 | 160,228 | |||||||
Operating Segments | LATAM | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total assets | 46,822 | 43,031 | |||||||
Other | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total assets | $ 17,673 | $ 20,038 |
Business Segments - Long-lived
Business Segments - Long-lived Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 37,224 | $ 36,837 | $ 82,933 |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 2,713 | 11,078 | |
Operating Segments | EMEA | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 12,675 | 51,131 | |
Operating Segments | LATAM | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 463 | 598 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 21,373 | $ 20,126 |
Quarterly Selected Financial _3
Quarterly Selected Financial Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Revenue | $ 319,074,000 | $ 287,688,000 | $ 283,861,000 | $ 267,211,000 | $ 293,977,000 | $ 270,844,000 | $ 281,988,000 | $ 274,297,000 | $ 551,072,000 | $ 556,285,000 | $ 838,760,000 | $ 827,129,000 | $ 1,157,834,000 | $ 1,121,106,000 | $ 1,138,370,000 |
Gross profit | 62,106,000 | 69,495,000 | 68,398,000 | 62,010,000 | 59,066,000 | 63,967,000 | 64,941,000 | 65,839,000 | 130,408,000 | 130,780,000 | 199,903,000 | 194,747,000 | 262,009,000 | 253,813,000 | 275,508,000 |
(Loss) income from operations | 3,588,000 | 3,762,000 | 4,063,000 | (371,000) | (28,232,000) | (43,312,000) | 2,377,000 | 984,000 | 3,692,000 | 3,361,000 | 7,454,000 | (39,951,000) | 11,042,000 | (68,183,000) | 33,546,000 |
Net loss | $ (6,461,000) | $ (1,062,000) | $ (508,000) | $ (2,044,000) | $ (29,390,000) | $ (45,120,000) | $ (299,000) | $ (1,874,000) | (2,552,000) | (2,173,000) | (3,614,000) | (47,293,000) | (10,075,000) | (76,683,000) | 15,869,000 |
Basic and diluted (in USD per share) | $ (0.12) | $ (0.02) | $ (0.01) | $ (0.04) | $ (0.57) | $ (0.87) | $ (0.01) | $ (0.03) | |||||||
Selling, general and administrative expenses | $ 59,751,000 | $ 57,404,000 | $ 55,830,000 | $ 62,124,000 | $ 56,167,000 | $ 59,050,000 | $ 61,196,000 | $ 113,235,000 | $ 120,246,000 | 172,986,000 | $ 176,413,000 | 222,721,000 | 238,537,000 | 227,895,000 | |
Goodwill impairment | 18,400,000 | 27,900,000 | 0 | 46,319,000 | 0 | ||||||||||
Intangible and other asset impairments | 13,800,000 | 0 | 18,121,000 | $ 0 | |||||||||||
Long-lived asset impairment charge | $ 3,000,000 | ||||||||||||||
Capitalized contract cost, impairment loss | $ 1,300,000 | $ 0 | $ 1,300,000 | ||||||||||||
Cost of Good Sold | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Prior period reclassification adjustment | $ 13,800,000 | ||||||||||||||
Selling, General and Administrative Expenses | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Prior period reclassification adjustment | $ (13,800,000) | ||||||||||||||
Selling, general and administrative expenses | $ 9,400,000 |
Revision of Prior Period Fina_3
Revision of Prior Period Financial Statements - Revised Consolidated Statements of Income Amounts (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Revenue | $ 319,074 | $ 287,688 | $ 283,861 | $ 267,211 | $ 293,977 | $ 270,844 | $ 281,988 | $ 274,297 | $ 551,072 | $ 556,285 | $ 838,760 | $ 827,129 | $ 1,157,834 | $ 1,121,106 | $ 1,138,370 |
Cost of goods sold | 218,193 | 215,463 | 205,201 | 234,911 | 206,877 | 217,047 | 208,458 | 420,664 | 425,505 | 638,857 | 632,382 | 895,825 | 867,293 | 862,862 | |
Gross profit | 62,106 | 69,495 | 68,398 | 62,010 | 59,066 | 63,967 | 64,941 | 65,839 | 130,408 | 130,780 | 199,903 | 194,747 | 262,009 | 253,813 | 275,508 |
Selling, general and administrative expenses | 59,751 | 57,404 | 55,830 | 62,124 | 56,167 | 59,050 | 61,196 | 113,235 | 120,246 | 172,986 | 176,413 | 222,721 | 238,537 | 227,895 | |
Restructuring charges | 2,892 | 10,524 | 15,918 | 6,031 | 0 | ||||||||||
(Loss) income from operations | 3,588 | 3,762 | 4,063 | (371) | (28,232) | (43,312) | 2,377 | 984 | 3,692 | 3,361 | 7,454 | (39,951) | 11,042 | (68,183) | 33,546 |
Other, net | (1,735) | 279 | (440) | (161) | (1,896) | (3,686) | (1,616) | (1,788) | |||||||
Total other expense | (6,074) | (2,103) | (3,087) | (5,191) | (11,265) | (17,417) | (9,147) | (6,420) | |||||||
(Loss) income before income taxes | (2,312) | 1,960 | (3,458) | (30,926) | (45,363) | 326 | (1,368) | (1,499) | (1,042) | (3,811) | (46,404) | (6,375) | (77,330) | 27,126 | |
Provision (benefit) for income tax | (1,250) | 2,468 | (1,414) | (1,536) | (243) | 625 | 506 | 1,053 | 1,131 | (197) | 889 | 3,700 | (647) | 11,257 | |
Net loss | $ (6,461) | $ (1,062) | $ (508) | $ (2,044) | $ (29,390) | $ (45,120) | $ (299) | $ (1,874) | $ (2,552) | $ (2,173) | $ (3,614) | $ (47,293) | $ (10,075) | $ (76,683) | $ 15,869 |
Basic (loss) earnings per share (in USD per share) | $ (0.02) | $ (0.01) | $ (0.04) | $ (0.57) | $ (0.87) | $ (0.01) | $ (0.03) | $ (0.05) | $ (0.04) | $ (0.07) | $ (0.90) | $ (0.19) | $ (1.47) | $ 0.29 | |
Diluted (loss) earnings per share (in USD per share) | $ (0.02) | $ (0.01) | $ (0.04) | $ (0.57) | $ (0.87) | $ (0.01) | $ (0.03) | $ (0.05) | $ (0.04) | $ (0.07) | $ (0.90) | $ (0.19) | $ (1.47) | $ 0.29 | |
Comprehensive income (loss) | $ (2,798) | $ (255) | $ (1,297) | $ (30,519) | $ (46,829) | $ (5,906) | $ 1,490 | $ (1,552) | $ (4,416) | $ (4,350) | $ (51,244) | $ (8,213) | $ (81,765) | $ 17,589 | |
Adjusted EBITDA | $ 49,045 | 27,315 | 57,494 | ||||||||||||
As Reported | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Revenue | 286,525 | 284,053 | 267,239 | 294,195 | 270,850 | 281,967 | 274,539 | 551,291 | 556,506 | 837,816 | 827,356 | 1,121,551 | 1,138,361 | ||
Cost of goods sold | 218,356 | 214,986 | 206,043 | 234,077 | 206,808 | 217,096 | 208,472 | 421,029 | 425,568 | 639,385 | 632,376 | 866,453 | 862,903 | ||
Gross profit | 68,169 | 69,067 | 61,196 | 60,118 | 64,042 | 64,871 | 66,067 | 130,262 | 130,938 | 198,431 | 194,980 | 255,098 | 275,458 | ||
Selling, general and administrative expenses | 59,938 | 58,661 | 55,805 | 62,812 | 56,142 | 59,002 | 61,167 | 114,466 | 120,169 | 174,404 | 176,312 | 239,124 | 227,253 | ||
Restructuring charges | 3,055 | 10,687 | |||||||||||||
(Loss) income from operations | 2,086 | 3,475 | (1,160) | (27,868) | (43,212) | 2,355 | 1,241 | 2,315 | 3,596 | 4,401 | (39,617) | (67,485) | 34,138 | ||
Other, net | (1,736) | 279 | (740) | (460) | (2,196) | ||||||||||
Total other expense | (6,075) | (2,103) | (3,387) | (5,490) | (11,565) | ||||||||||
(Loss) income before income taxes | (3,989) | 1,372 | (4,547) | (30,562) | (45,263) | 304 | (1,111) | (3,175) | (807) | (7,164) | (46,070) | (76,632) | 27,718 | ||
Provision (benefit) for income tax | (1,815) | 2,541 | (2,085) | (1,312) | (326) | 603 | 573 | 456 | 1,176 | (1,359) | 851 | (461) | 11,288 | ||
Net loss | $ (2,174) | $ (1,169) | $ (2,462) | $ (29,250) | $ (44,937) | $ (299) | $ (1,684) | $ (3,631) | $ (1,983) | $ (5,805) | $ (46,921) | $ (76,171) | $ 16,430 | ||
Basic (loss) earnings per share (in USD per share) | $ (0.04) | $ (0.02) | $ (0.05) | $ (0.56) | $ (0.87) | $ (0.01) | $ (0.03) | $ (0.07) | $ (0.04) | $ (0.11) | $ (0.90) | $ (1.46) | $ 0.31 | ||
Diluted (loss) earnings per share (in USD per share) | $ (0.04) | $ (0.02) | $ (0.05) | $ (0.56) | $ (0.87) | $ (0.01) | $ (0.03) | $ (0.07) | $ (0.04) | $ (0.11) | $ (0.90) | $ (1.46) | $ 0.30 | ||
Comprehensive income (loss) | $ (3,910) | $ (916) | $ (1,715) | $ (30,379) | $ (46,646) | $ (5,906) | $ 1,680 | $ (2,631) | $ (4,226) | $ (6,541) | $ (50,872) | $ (81,251) | $ 18,150 | ||
Adjusted EBITDA | 27,900 | 57,883 | |||||||||||||
Adjustments | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Revenue | 1,163 | (192) | (28) | (218) | (6) | 21 | (242) | (219) | (221) | 944 | (227) | (445) | 9 | ||
Cost of goods sold | (163) | 477 | (842) | 834 | 69 | (49) | (14) | (365) | (63) | (528) | 6 | 840 | (41) | ||
Gross profit | 1,326 | (669) | 814 | (1,052) | (75) | 70 | (228) | 146 | (158) | 1,472 | (233) | (1,285) | 50 | ||
Selling, general and administrative expenses | (187) | (1,257) | 25 | (688) | 25 | 48 | 29 | (1,231) | 77 | (1,418) | 101 | (587) | 642 | ||
Restructuring charges | (163) | (163) | |||||||||||||
(Loss) income from operations | 1,676 | 588 | 789 | (364) | (100) | 22 | (257) | 1,377 | (235) | 3,053 | (334) | (698) | (592) | ||
Other, net | 1 | 0 | 300 | 299 | 300 | ||||||||||
Total other expense | 1 | 0 | 300 | 299 | 300 | ||||||||||
(Loss) income before income taxes | 1,677 | 588 | 1,089 | (364) | (100) | 22 | (257) | 1,676 | (235) | 3,353 | (334) | (698) | (592) | ||
Provision (benefit) for income tax | 565 | (73) | 671 | (224) | 83 | 22 | (67) | 597 | (45) | 1,162 | 38 | (186) | (31) | ||
Net loss | $ 1,112 | $ 661 | $ 418 | $ (140) | $ (183) | $ 0 | $ (190) | $ 1,079 | $ (190) | $ 2,191 | $ (372) | $ (512) | $ (561) | ||
Basic (loss) earnings per share (in USD per share) | $ 0.02 | $ 0.01 | $ 0.01 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0.02 | $ 0 | $ 0.04 | $ 0 | $ (0.01) | $ (0.02) | ||
Diluted (loss) earnings per share (in USD per share) | $ 0.02 | $ 0.01 | $ 0.01 | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0.02 | $ 0 | $ 0.04 | $ 0 | $ (0.01) | $ (0.01) | ||
Comprehensive income (loss) | $ 1,112 | $ 661 | $ 418 | $ (140) | $ (183) | $ 0 | $ (190) | $ 1,079 | $ (190) | $ 2,191 | $ (372) | $ (514) | $ (561) | ||
Adjusted EBITDA | $ (585) | $ (389) |
Revision of Prior Period Fina_4
Revision of Prior Period Financial Statements - Revised Consolidated Balance Sheet Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Accounts receivable, net of allowance for doubtful accounts of $3,830 and $4,880, respectively | $ 202,406 | $ 191,145 | $ 188,614 | $ 184,277 | $ 193,186 | $ 188,605 | $ 185,290 | $ 183,084 | $ 205,448 | |
Unbilled revenue | 48,396 | 65,370 | 60,554 | 50,940 | 46,252 | 59,734 | 47,678 | 47,442 | ||
Inventories | 34,977 | 63,996 | 51,172 | 46,624 | 55,715 | |||||
Prepaid expenses | 10,680 | 13,247 | 14,406 | 13,518 | 16,256 | |||||
Other current assets | 7,301 | 13,479 | 28,915 | 36,394 | 10,733 | 43,323 | 26,656 | 34,109 | 38,200 | |
Total current assets | 374,665 | 425,042 | 377,660 | 357,604 | 372,639 | 397,915 | 349,255 | 366,518 | 383,485 | |
Total assets | 629,283 | 679,471 | 630,267 | 598,988 | 621,729 | 661,735 | 644,617 | 634,195 | 650,035 | |
Property and equipment, net | 37,224 | 36,837 | 82,933 | |||||||
Accounts payable | 142,136 | 168,423 | 139,591 | 148,532 | 158,028 | 161,140 | 122,336 | 120,197 | 141,108 | |
Accrued expenses | 50,975 | 43,933 | 37,788 | 31,591 | 35,698 | 36,175 | 35,022 | 40,717 | 35,026 | |
Deferred revenue | 9,568 | 18,364 | 21,497 | 17,614 | ||||||
Other current liabilities | 35,665 | 33,339 | 35,776 | 33,695 | 28,190 | 23,504 | 24,672 | 25,942 | 25,927 | |
Total current liabilities | 246,437 | 274,894 | 392,327 | 373,686 | 382,266 | 251,523 | 338,590 | 218,380 | 219,681 | |
Deferred income taxes | 8,053 | 7,684 | 7,722 | 7,695 | 7,605 | 11,735 | 11,828 | 11,800 | 11,634 | |
Total liabilities | 451,031 | 498,978 | 448,659 | 418,411 | 440,774 | 451,835 | 388,640 | 356,353 | 367,112 | |
Accumulated other comprehensive loss | (22,449) | (25,083) | (23,337) | (23,599) | (24,311) | |||||
Retained earnings | 36,855 | 43,335 | 44,400 | 44,907 | 46,771 | 76,160 | 121,280 | 121,581 | 122,820 | |
Total stockholders' equity | 178,252 | 180,493 | 181,608 | 180,577 | 180,955 | 209,900 | 255,977 | 277,842 | 282,923 | $ 262,161 |
Total liabilities and stockholders' equity | $ 629,283 | 679,471 | 630,267 | 598,988 | 621,729 | 661,735 | 644,617 | 634,195 | 650,035 | |
As Reported | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Accounts receivable, net of allowance for doubtful accounts of $3,830 and $4,880, respectively | 190,992 | 188,687 | 184,359 | 193,253 | 188,744 | 185,222 | 183,012 | 205,386 | ||
Unbilled revenue | 65,584 | 60,911 | 51,166 | 46,474 | 59,961 | 47,906 | 47,685 | |||
Inventories | 64,136 | 51,553 | 46,927 | 56,001 | ||||||
Prepaid expenses | 13,973 | 15,132 | 14,245 | 16,982 | ||||||
Other current assets | 13,271 | 28,707 | 36,188 | 10,379 | 43,005 | 26,296 | 33,716 | 37,865 | ||
Total current assets | 425,761 | 378,989 | 358,736 | 373,586 | 397,963 | 349,055 | 366,296 | 383,088 | ||
Total assets | 680,067 | 631,596 | 600,120 | 622,676 | 661,783 | 644,417 | 633,973 | 649,638 | ||
Property and equipment, net | 36,714 | |||||||||
Accounts payable | 169,173 | 140,492 | 149,813 | 158,449 | 161,389 | 122,452 | 120,260 | 141,164 | ||
Accrued expenses | 44,096 | 37,446 | 31,339 | 35,474 | 35,539 | 34,386 | 40,081 | 34,391 | ||
Deferred revenue | 18,526 | 21,532 | ||||||||
Other current liabilities | 32,325 | 34,877 | 31,493 | 26,231 | 21,535 | 22,770 | 24,073 | 24,078 | ||
Total current liabilities | 274,955 | 392,022 | 372,513 | 380,504 | 249,167 | 336,168 | 215,938 | 217,253 | ||
Deferred income taxes | 8,257 | 8,295 | 8,268 | 8,178 | 12,143 | 12,236 | 12,208 | 12,043 | ||
Total liabilities | 499,612 | 448,927 | 417,811 | 439,585 | 449,887 | 386,626 | 354,319 | 365,093 | ||
Accumulated other comprehensive loss | (25,045) | (23,309) | (23,562) | (24,309) | ||||||
Retained earnings | 43,259 | 45,433 | 46,602 | 48,905 | 78,156 | 123,094 | 123,393 | 124,442 | ||
Total stockholders' equity | 180,455 | 182,669 | 182,309 | 183,091 | 211,896 | 257,791 | 279,654 | 284,545 | ||
Total liabilities and stockholders' equity | 680,067 | 631,596 | 600,120 | 622,676 | 661,783 | 644,417 | 633,973 | 649,638 | ||
Adjustments | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Accounts receivable, net of allowance for doubtful accounts of $3,830 and $4,880, respectively | 153 | (73) | (82) | (67) | (139) | 68 | 72 | 62 | ||
Unbilled revenue | (214) | (357) | (226) | (222) | (227) | (228) | (243) | |||
Inventories | (140) | (381) | (303) | (286) | ||||||
Prepaid expenses | (726) | (726) | (727) | (726) | ||||||
Other current assets | 208 | 208 | 206 | 354 | 318 | 360 | 393 | 335 | ||
Total current assets | (719) | (1,329) | (1,132) | (947) | (48) | 200 | 222 | 397 | ||
Total assets | (596) | (1,329) | (1,132) | (947) | (48) | 200 | 222 | 397 | ||
Property and equipment, net | 123 | |||||||||
Accounts payable | (750) | (901) | (1,281) | (421) | (249) | (116) | (63) | (56) | ||
Accrued expenses | (163) | 342 | 252 | 224 | 636 | 636 | 636 | 635 | ||
Deferred revenue | (162) | (35) | ||||||||
Other current liabilities | 1,014 | 899 | 2,202 | 1,959 | 1,969 | 1,902 | 1,869 | 1,849 | ||
Total current liabilities | (61) | 305 | 1,173 | 1,762 | 2,356 | 2,422 | 2,442 | 2,428 | ||
Deferred income taxes | (573) | (573) | (573) | (573) | (408) | (408) | (408) | (409) | ||
Total liabilities | (634) | (268) | 600 | 1,189 | 1,948 | 2,014 | 2,034 | 2,019 | ||
Accumulated other comprehensive loss | (38) | (28) | (37) | (2) | ||||||
Retained earnings | 76 | (1,033) | (1,695) | (2,134) | (1,996) | (1,814) | (1,812) | (1,622) | ||
Total stockholders' equity | 38 | (1,061) | (1,732) | (2,136) | (1,996) | (1,814) | (1,812) | (1,622) | ||
Total liabilities and stockholders' equity | $ (596) | $ (1,329) | $ (1,132) | $ (947) | $ (48) | $ 200 | $ 222 | $ 397 |
Revision of Prior Period Fina_5
Revision of Prior Period Financial Statements - Revised Consolidated Statements of Cash Flows Amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||||||
Net (loss) income | $ (6,461) | $ (1,062) | $ (508) | $ (2,044) | $ (29,390) | $ (45,120) | $ (299) | $ (1,874) | $ (2,552) | $ (2,173) | $ (3,614) | $ (47,293) | $ (10,075) | $ (76,683) | $ 15,869 |
Deferred income taxes | (879) | (4,604) | 4,073 | ||||||||||||
Accounts receivable and unbilled revenue | 3,928 | (10,099) | (21,488) | (12,254) | 4,470 | (41,871) | |||||||||
Inventories | 9,165 | 4,582 | (8,913) | 20,980 | (16,039) | (4,245) | |||||||||
Prepaid expenses and other assets | 274 | (4,163) | (28,985) | (6,529) | 2,120 | (13,882) | |||||||||
Accounts payable | (9,207) | (18,146) | 12,078 | (15,634) | 21,585 | 18,096 | |||||||||
Accrued expenses and other liabilities | (610) | 22,551 | 23,868 | 22,843 | 5,190 | 12,107 | |||||||||
Net cash (used in) provided by operating activities | 5,492 | 1,289 | (9,655) | 22,470 | 23,058 | 11,698 | |||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment | (10,135) | (13,378) | (11,263) | (12,483) | |||||||||||
Net cash used in investing activities | (10,525) | $ (14,099) | (11,141) | (12,483) | |||||||||||
As Reported | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net (loss) income | (2,174) | (1,169) | (2,462) | (29,250) | (44,937) | (299) | (1,684) | (3,631) | (1,983) | (5,805) | (46,921) | (76,171) | 16,430 | ||
Deferred income taxes | (4,441) | 4,072 | |||||||||||||
Accounts receivable and unbilled revenue | 3,924 | (10,225) | (21,245) | 4,112 | (41,877) | ||||||||||
Inventories | 9,149 | 4,488 | (8,767) | (16,325) | |||||||||||
Prepaid expenses and other assets | 116 | (4,318) | (29,141) | 1,432 | (13,547) | ||||||||||
Accounts payable | (8,351) | (17,670) | 12,403 | 21,959 | 18,152 | ||||||||||
Accrued expenses and other liabilities | (870) | 23,529 | 25,378 | 5,473 | 11,162 | ||||||||||
Net cash (used in) provided by operating activities | 5,492 | 1,289 | (9,778) | 23,058 | 11,698 | ||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment | (10,012) | ||||||||||||||
Net cash used in investing activities | (10,402) | ||||||||||||||
Adjustments | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net (loss) income | $ 1,112 | $ 661 | 418 | $ (140) | $ (183) | $ 0 | $ (190) | 1,079 | $ (190) | 2,191 | $ (372) | (512) | (561) | ||
Deferred income taxes | (163) | 1 | |||||||||||||
Accounts receivable and unbilled revenue | 4 | 126 | (243) | 358 | 6 | ||||||||||
Inventories | 16 | 94 | (146) | 286 | |||||||||||
Prepaid expenses and other assets | 158 | 155 | 156 | 688 | (335) | ||||||||||
Accounts payable | (856) | (476) | (325) | (374) | (56) | ||||||||||
Accrued expenses and other liabilities | 260 | (978) | (1,510) | (283) | 945 | ||||||||||
Net cash (used in) provided by operating activities | $ 0 | $ 0 | 123 | $ 0 | $ 0 | ||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment | (123) | ||||||||||||||
Net cash used in investing activities | $ (123) |
Uncategorized Items - inwk20191
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 482,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 482,000 |
Accounting Standards Update 2016-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,291,000 |
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 198,000 |
Accounting Standards Update 2016-09 [Member] | Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,093,000 |
Accounting Standards Update 2016-16 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 152,000 |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 152,000 |