Interactive Intelligence 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Interactive Intelligence Group, Inc.
Entity Central Index Key	1,517,650
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		22,348,615
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 121,349	$ 94,808
Short-term investments	48,938	64,182
Accounts receivable, net of allowance for doubtful accounts of $1,720 at September 30, 2016 and $1,508 at December 31, 2015	91,445	106,950
Prepaid expenses	31,263	32,709
Other current assets	10,299	13,264
Total current assets	303,294	311,913
Long-term investments	46,085	30,503
Property and equipment, net	36,476	44,837
Capitalized software, net	40,252	43,783
Goodwill	42,661	41,848
Intangible assets, net	14,061	14,427
Other assets, net	6,009	6,222
Total assets	488,838	493,533
Current liabilities:
Accounts payable	12,963	10,571
Accrued liabilities	14,829	17,157
Accrued compensation and related expenses	20,268	18,910
Deferred license and hardware revenues	898	7,823
Deferred recurring revenues	102,032	92,773
Deferred services revenues	9,943	14,979
Total current liabilities	160,933	162,213
Convertible notes	122,878	118,022
Long-term deferred revenues	21,517	19,834
Deferred tax liabilities, net	1,351	2,143
Other long-term liabilities	6,909	7,291
Total liabilities	313,588	309,503
Shareholders' equity:
Common stock, $0.01 par value; 100,000,000 authorized; 22,326,212 issued and outstanding at September 30, 2016, 21,821,895 issued and outstanding at December 31, 2015	223	218
Additional paid-in capital	255,430	237,496
Accumulated other comprehensive loss, net of tax	(9,125)	(11,244)
Accumulated deficit	(71,278)	(42,440)
Total shareholders' equity	175,250	184,030
Total liabilities and shareholders' equity	$ 488,838	$ 493,533

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Accounts receivable, allowance for doubtful accounts	$ 1,720	$ 1,508
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	22,326,212	21,821,895
Common stock, shares outstanding (in shares)	22,326,212	21,821,895

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Recurring	$ 73,058	$ 59,228	$ 203,393	$ 167,286
License and hardware	23,329	22,668	74,409	71,299
Services	14,020	15,473	40,677	44,590
Total revenues	110,407	97,369	318,479	283,175
Costs of revenues:
Costs of recurring	21,799	21,626	67,000	59,623
Costs of license and hardware	6,074	5,777	18,088	18,858
Costs of services	11,437	11,318	34,377	34,083
Total costs of revenues	39,310	38,721	119,465	112,564
Gross profit	71,097	58,648	199,014	170,611
Operating expenses:
Sales and marketing	36,637	32,400	110,881	97,384
Research and development	23,954	20,536	69,976	51,067
General and administrative	14,466	11,894	40,192	36,874
Total operating expenses	75,057	64,830	221,049	185,325
Operating loss	(3,960)	(6,182)	(22,035)	(14,714)
Other expense:
Interest expense, net	(1,453)	(1,963)	(5,018)	(2,405)
Other expense	(372)	(424)	(1,035)	(983)
Total other expense	(1,825)	(2,387)	(6,053)	(3,388)
Loss before income taxes	(5,785)	(8,569)	(28,088)	(18,102)
Income tax benefit (expense)	358	(1,183)	(750)	(193)
Net loss	$ (5,427)	$ (9,752)	$ (28,838)	$ (18,295)
Net loss per share:
Basic (in dollars per share)	$ (0.25)	$ (0.45)	$ (1.30)	$ (0.85)
Diluted (in dollars per share)	$ (0.25)	$ (0.45)	$ (1.30)	$ (0.85)
Shares used to compute net loss per share:
Basic (shares)	22,111	21,664	22,114	21,568
Diluted (shares)	22,111	21,664	22,114	21,568
Amounts include amortization of purchased intangibles from business combinations
Total intangible amortization expense	$ 614	$ 617	$ 1,825	$ 1,862
Amounts include stock-based compensation expense
Total stock-based compensation expense	4,991	4,747	14,088	11,616
Costs of recurring revenues
Amounts include stock-based compensation expense
Total stock-based compensation expense	426	462	1,291	1,405
Costs of license and hardware revenue
Amounts include amortization of purchased intangibles from business combinations
Total intangible amortization expense	186	178	558	532
Amounts include stock-based compensation expense
Total stock-based compensation expense	14	22	69	65
Costs of services revenues
Amounts include stock-based compensation expense
Total stock-based compensation expense	253	183	795	476
Sales and marketing
Amounts include stock-based compensation expense
Total stock-based compensation expense	1,552	1,199	3,917	2,914
Research and development
Amounts include stock-based compensation expense
Total stock-based compensation expense	1,595	1,663	4,989	3,445
General and administrative
Amounts include amortization of purchased intangibles from business combinations
Total intangible amortization expense	428	439	1,267	1,330
Amounts include stock-based compensation expense
Total stock-based compensation expense	$ 1,151	$ 1,218	$ 3,027	$ 3,311

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,427)	$ (9,752)	$ (28,838)	$ (18,295)
Other comprehensive income (loss):
Foreign currency translation adjustment	882	(2,215)	1,838	(5,024)
Net unrealized investment (loss) gain - net of tax	(62)	53	281	103
Comprehensive loss	$ (4,607)	$ (11,914)	$ (26,719)	$ (23,216)

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Shareholders' Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning Balance at Dec. 31, 2015	$ 184,030	$ 218	$ 237,496	$ (11,244)	$ (42,440)
Beginning Balance (in shares) at Dec. 31, 2015	21,821,895	21,822,000
Net loss	$ (28,838)				(28,838)
Stock-based compensation expense	14,224		14,224
Exercise of stock options	5,213	$ 2	5,211
Exercise of stock options (shares)		220,000
Issuances of common stock	1,034	$ 1	1,033
Issuances of common stock (in shares)		97,000
Tax withholding on restricted stock unit awards	(2,532)	$ 2	(2,534)
Tax withholding on restricted stock awards (in shares)		187,000
Foreign currency translation adjustment	1,838			1,838
Net unrealized investment gain	281			281
Ending Balance at Sep. 30, 2016	$ 175,250	$ 223	$ 255,430	$ (9,125)	$ (71,278)
Ending Balance (in shares) at Sep. 30, 2016	22,326,212	22,326,000

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities:
Net loss	$ (28,838)	$ (18,295)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	12,535	12,586
Amortization	9,754	5,664
Other non-cash items	873	(3,053)
Stock-based compensation expense	14,088	11,616
Deferred income taxes	(792)	(32)
Accretion of investment discount	(156)	(866)
Loss on disposal of fixed assets	729	48
Amortization of debt issuance costs	533	229
Amortization of debt discount	4,323	1,819
Gain on sale of subsidiary	(452)	0
Changes in operating assets and liabilities:
Accounts receivable	15,391	(5,045)
Prepaid expenses	1,446	(3,681)
Other current assets	2,965	(130)
Accounts payable	992	870
Accrued liabilities	(1,982)	(568)
Accrued compensation and related expenses	1,358	288
Deferred license and hardware revenues	(6,999)	4,704
Deferred recurring revenues	9,378	5,150
Deferred services revenues	(3,002)	654
Other assets and liabilities	(119)	647
Net cash provided by operating activities	32,025	12,605
Investing activities:
Sales of available-for-sale investments	62,223	22,159
Purchases of available-for-sale investments	(62,124)	(82,321)
Purchases of property and equipment	(5,937)	(14,470)
Capitalized software	(3,175)	(13,849)
Acquisitions and divestitures	160	0
Unrealized loss on investment	0	1
Net cash used in investing activities	(8,853)	(88,480)
Financing activities:
Proceeds from issuance of convertible debt	0	150,000
Payment for debt issuance costs	0	(4,674)
Payment for capped call premiums	0	(12,750)
Principal payments on capital lease obligations	(346)	(33)
Proceeds from stock options exercised	5,213	2,469
Proceeds from issuance of common stock	1,034	1,215
Tax withholding on restricted stock unit awards	(2,532)	(3,476)
Net cash provided by financing activities	3,369	132,751
Net increase in cash and cash equivalents	26,541	56,876
Cash and cash equivalents, beginning of period	94,808	36,168
Cash and cash equivalents, end of period	121,349	93,044
Cash paid during the period for:
Interest	977	59
Income taxes	2,165	897
Non-cash financing and investing activities:
Issuance of retirement plan shares	0	2,523
Other non-cash item:
Purchase of property and equipment payable at end of period	$ 93	$ 187

FINANCIAL STATEMENT PRESENTATIO

FINANCIAL STATEMENT PRESENTATION	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
FINANCIAL STATEMENT PRESENTATION	FINANCIAL STATEMENT PRESENTATION The accompanying unaudited condensed consolidated financial statements of Interactive Intelligence Group, Inc. (together with its consolidated subsidiaries, "the Company," "we," "us" and "our") have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and with the instructions for Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, certain information and note disclosures normally included in the Company’s financial statements prepared in accordance with GAAP have been condensed, or omitted, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). The preparation of the Company’s condensed consolidated financial statements requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, at the respective balance sheet dates, and the reported amounts of revenues and expenses during the respective reporting periods. Despite management’s best effort to establish good faith estimates and assumptions, actual results could differ from these estimates. In management’s opinion, the Company’s accompanying condensed consolidated financial statements include all adjustments necessary (which are of a normal and recurring nature, except as otherwise noted) for the fair presentation of the results of the interim periods presented. The Company’s accompanying condensed consolidated financial statements as of December 31, 2015 have been derived from the Company’s audited consolidated financial statements at that date but do not include all of the information and notes required by GAAP for complete financial statements. These accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2015 , included in the Company’s most recent Annual Report on Form 10-K as filed with the SEC on February 29, 2016. The Company’s results of operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after elimination of all significant intercompany accounts and transactions. Pending Merger On August 30, 2016, the Company entered into an Agreement and Plan of Merger (the "merger agreement") with Genesys Telecommunications Laboratories, Inc., a California corporation ("Genesys"), Giant Merger Sub Inc., an Indiana corporation and a wholly owned subsidiary of Genesys ("Merger Sub"), and, solely for the purposes of Section 5.16 of the merger agreement, Greeneden Lux 3 S. àR.L., a societe a responsabilite limitee under the laws of Luxembourg, Greeneden U.S. Holdings I, LLC, a Delaware limited liability company, and Greeneden U.S. Holdings II, LLC, a Delaware limited liability company, pursuant to which Merger Sub will be merged with and into the Company (the "merger"). The merger agreement provides, among other things, that at the effective time of the merger (the "effective time"), Merger Sub will be merged with and into the Company, and each issued and outstanding share of common stock, par value $0.01 per share, of the Company, other than shares of common stock owned directly by the Company, Genesys or Merger Sub as of immediately prior to the effective time or shares of common stock owned directly by any subsidiary of the Company, any subsidiary of Genesys (other than Merger Sub) or any subsidiary of Merger Sub as of immediately prior to the effective time, will be converted automatically into the right to receive $60.50 in cash, without interest. At the effective time, each stock option that is outstanding immediately prior to the effective time and that is vested as of August 30, 2016 or becomes vested prior to the effective time in accordance with its terms or the terms of the merger agreement will, as of the effective time, be converted into the right to receive an amount in cash (less applicable withholdings and deductions) equal to the product of (x) the excess, if any, of $60.50 over the exercise price per share of such vested stock option and (y) the total number of shares subject to such vested stock option. The merger agreement provides for (1) unvested stock options scheduled to vest on or prior to December 31, 2017 to vest at the effective time and (2) certain other unvested stock options of the Company's directors, executive officers and certain of the Company's other employees to vest at the effective time. Each stock option that is outstanding immediately prior to the effective time and that is unvested immediately prior to the effective time (and does not become vested in accordance with the terms of the merger agreement) will as of the effective time, automatically convert into an award to receive an amount in cash equal to the product of (x) the excess, if any, of $60.50 over the exercise price per share of such unvested stock option and (y) the total number of shares subject to such unvested stock option. Such converted award will remain subject to the same vesting terms and conditions that applied to such award immediately prior to the effective time, including continued employment through the applicable vesting date. Payments will be made, less applicable withholdings and deductions, promptly following the applicable vesting date. At the effective time, each restricted stock unit ("RSU") that is outstanding immediately prior to the effective time that becomes vested at the effective time in accordance with its terms or the terms of the merger agreement will, as of the effective time, automatically convert into the right to receive an amount in cash (less applicable withholdings and deductions) equal to the product of (x) the total number of shares subject to such vested RSU and (y) $60.50 . The merger agreement provides for (1) unvested RSUs scheduled to vest on or prior to December 31, 2017 to vest at the effective time and (2) certain other unvested RSUs of the Company's directors, executive officers and certain of the Company's other employees to vest at the effective time. Each RSU that is outstanding immediately prior to the effective time and that is unvested immediately prior to the effective time (and does not become vested in accordance with the terms of the merger agreement), will, as of the effective time, automatically convert into an award to receive an amount in cash equal to the product of (x) the total number of shares subject to such unvested RSU and (y) $60.50 . Such converted award will remain subject to the same vesting terms and conditions that applied to such award immediately prior to the effective time, including continued employment through the applicable vesting date. Payments will be made, less applicable withholdings and deductions, promptly following the applicable vesting date. The Company, Genesys and Merger Sub have made customary representations and warranties in the merger agreement, and each has agreed to use its reasonable best efforts to consummate the merger. The Company has also agreed to various covenants in the merger agreement, including, among others, (i) to conduct its business in all material respects in the ordinary course consistent with past practice during the period between the execution of the merger agreement and the effective time of the merger and (ii) to cause a special meeting of the Company’s shareholders to be held to consider the approval of the merger agreement. The consummation of the merger is subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act"). In accordance with the HSR Act, the Company and Genesys filed their respective Premerger Notification and Report Forms on September 13, 2016. On October 12, 2016, the Federal Trade Commission granted early termination of the waiting period under the HSR Act. The termination of the waiting period under the HSR Act satisfies one of the conditions necessary for the consummation of the merger. Completion of the merger is also subject to obtaining the required approval under the applicable antitrust laws in South Africa. The Company and Genesys filed a Merger Notice with the South African Competition Commission (the "Commission") on September 16, 2016. On October 26, 2016, the Commission issued a Merger Clearance Certificate approving the merger without any conditions. The receipt of this competition clearance under South African antitrust laws satisfies one of the conditions necessary for consummation of the merger. All antitrust clearance required to consummate the merger has now been received. Consummation of the merger is also subject to various other conditions, including, (i) the approval of the merger agreement by at least a majority of the outstanding shares of the Company's common stock entitled to vote on the proposal, (ii) the absence of any injunction or order by any court of competent jurisdiction that prohibits the consummation of the merger and the absence of any law that prohibits or makes illegal the consummation of the merger, (iii) if a request by the Committee on Foreign Investment in the United States ("CFIUS") occurs prior to the effective time, the obtaining of CFIUS clearance, (iv) the accuracy of the other party's representations and warranties in the merger agreement, subject to certain qualifications, (v) the other party's material performance of and compliance with its covenants contained in the merger agreement and (vi) in the case of Genesys' obligations, there having been no material adverse effect with respect to the Company since August 30, 2016. The transaction is expected to close before the end of calendar year 2016. The merger agreement contains certain termination rights for the Company and Genesys. Following termination of the merger agreement under specified circumstances generally relating to a competing transaction, the Company may be required to pay Genesys a termination fee of $43 million . The merger agreement also provides that Genesys may be required to pay the Company a reverse termination fee of $86 million under specified circumstances. In no event will either the Company or Genesys be required to pay the termination fee more than once. In addition, subject to certain limitations, either party may terminate the merger agreement if the merger is not consummated by January 31, 2017. During the three and nine months ended September 30, 2016 , the Company incurred costs associated with the merger of $1.6 million , which consisted of professional and legal fees and were expensed within general and administrative expenses on the Company's condensed consolidated statements of operations for the three and nine months ended September 30, 2016 .

SUMMARY OF CERTAIN ACCOUNTING P

SUMMARY OF CERTAIN ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]
SUMMARY OF CERTAIN ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS	SUMMARY OF CERTAIN ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS For a complete summary of the Company’s significant accounting policies and critical accounting estimates, refer to Note 2 of Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . In March 2016, the Financial Accounting Standards Board ("FASB") issued FASB Accounting Standards Update ("ASU") No. 2016-09, Compensation - Stock Compensation ("FASB ASU 2016-09"), which includes the simplification of several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. Public business entities must apply the new requirements in fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company has elected not to early adopt the amendments. The Company is evaluating the effect that FASB ASU 2016-09 will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued FASB ASU No. 2016-02, Leases ("FASB ASU 2016-02"), which amends the FASB Accounting Standards Codification ("ASC") to increase transparency and comparability among organizations by requiring companies to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Public business entities must apply the new requirements in fiscal years beginning after December 15, 2018, including interim periods within those years. All entities have the option of applying the amendments as of an earlier date for financial statements that have not been previously issued. The Company is evaluating the effect that FASB ASU 2016-02 will have on its consolidated financial statements and related disclosures. In May 2014, the FASB issued FASB ASU No. 2014-09, Revenue from Contracts with Customers ("FASB ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. FASB ASU 2014-09, as amended by subsequently issued ASUs, will replace most existing U.S. GAAP revenue recognition guidance when it becomes effective. As originally issued, the new standard was to become effective for the Company on January 1, 2017, and early adoption is not permitted. In August 2015, the FASB issued FASB ASU No. 2015-14, Deferral of the Effective Date, which declared a one-year deferral of the effective date of the new revenue recognition standard. As a result, the new standard will become effective for the Company beginning with the first quarter of 2018. FASB ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company expects to elect the retrospective transition method once the new standard becomes effective for the Company and is evaluating the effect that FASB ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet determined the effect of the guidance on its ongoing financial reporting. The Company capitalizes certain costs related to its multi-tenant cloud offering, PureCloud ® ("PureCloud"), and certain projects described below for internal use in accordance with FASB ASC 350-40, Internal Use Software . Once a product has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. The capitalization of costs ceases upon completion of all substantial testing. Costs incurred in the preliminary stages of development, maintenance and training costs are expensed as incurred. During the three and nine months ended September 30, 2016 , the Company capitalized $300,000 and $1.5 million , respectively, of costs related to the development of its PureCloud Platform, compared to the capitalization of $900,000 and $11.7 million during the same periods in 2015. The Company will continue to evaluate the need to capitalize development costs related to new PureCloud functionality and will begin amortizing such costs once that functionality is released for general availability. The Company also capitalizes costs related to implementing new business systems to meet its internal business needs. The Company has no substantive plans to market such software externally. During the three and nine months ended September 30, 2016 , the Company capitalized $2.4 million and $3.2 million , respectively, of costs associated with development and implementation of these systems, compared to the capitalization of $500,000 and $3.5 million during the same periods in 2015. During the three and nine months ended September 30, 2016 , there were no other material changes to the Company’s significant accounting policies or critical accounting estimates.

NET LOSS PER SHARE

NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NET LOSS PER SHARE Basic net loss per share is calculated based on the weighted-average number of common shares outstanding in accordance with FASB ASC Topic 260, Earnings per Share . Diluted net income per share is calculated based on the weighted-average number of common shares outstanding plus the effect of dilutive potential common shares. When the Company reports a net loss, the calculation of diluted net loss per share excludes potential common shares as the effect would be anti-dilutive. Potential common shares consist of shares of common stock issuable upon the exercise of stock options and vesting of RSUs. The following table sets forth the calculation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net loss, as reported (A) $ (5,427 ) $ (9,752 ) $ (28,838 ) $ (18,295 ) Weighted average shares of common stock outstanding (B) 22,111 21,664 22,114 21,568 Dilutive effect of employee stock options and RSUs — — — — Common stock and common stock equivalents (C) 22,111 21,664 22,114 21,568 Net loss per share: Basic (A/B) $ (0.25 ) $ (0.45 ) $ (1.30 ) $ (0.85 ) Diluted (A/C) (0.25 ) (0.45 ) (1.30 ) (0.85 ) The Company’s calculation of diluted net loss per share for the three and nine months ended September 30, 2016 excludes RSUs and stock options to purchase approximately 157,000 and 266,000 shares of the Company’s common stock, respectively, compared to 639,000 and 578,000 shares during the same periods in 2015, as their inclusion would be anti-dilutive.

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
INVESTMENTS	INVESTMENTS FASB ASC Topic 820, Fair Value Measurement ("FASB ASC 820"), as amended, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes the following three levels of inputs that may be used to measure fair value: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s short-term investments all mature in less than one year and its long-term investments all mature within three years. Both short-term and long-term investments are considered available for sale. The Company’s assets that are measured at fair value on a recurring basis are classified within Level 1 or Level 2 of the fair value hierarchy. The types of instruments valued based on quoted market prices in active markets include money market securities. Such instruments are classified within Level 1 of the fair value hierarchy. The Company invests in money market funds that are traded daily and does not adjust the quoted price for such instruments. The types of instruments valued based on quoted prices in less active markets, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency include corporate notes, U.S. government securities, asset-backed securities, agency bonds and commercial paper. Such instruments are classified within Level 2 of the fair value hierarchy. The Company uses consensus pricing, which is based on multiple pricing sources, to value its fixed income investments. The following table sets forth a summary of the Company’s financial assets, classified as cash and cash equivalents, short-term investments and long-term investments on its condensed consolidated balance sheets, measured at fair value as of September 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements at September 30, 2016 Using Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash & cash equivalents: Cash $ 101,696 $ 101,696 $ — $ — Money market funds 19,653 19,653 — — Total $ 121,349 $ 121,349 $ — $ — Short-term investments: Corporate notes $ 24,254 $ — $ 24,254 $ — U.S. government securities 8,105 — 8,105 — Commercial paper 5,991 — 5,991 — Asset-backed securities 5,592 — 5,592 — Agency bonds 4,996 — 4,996 — Total $ 48,938 $ — $ 48,938 $ — Long-term investments: Corporate notes $ 33,550 $ — $ 33,550 $ — U.S. government securities 11,026 — 11,026 — Asset-backed securities 1,509 — 1,509 — Total $ 46,085 $ — $ 46,085 $ — Fair Value Measurements at December 31, 2015 Using Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Cash & cash equivalents: Cash $ 76,966 $ 76,966 $ — $ — Money market funds 17,842 17,842 — — Total $ 94,808 $ 94,808 $ — $ — Short-term investments: Corporate notes $ 27,105 $ — $ 27,105 $ — Agency bonds 27,002 — 27,002 — Asset-backed securities 4,681 — 4,681 — U.S. government securities 3,896 — 3,896 — Commercial paper 1,498 — 1,498 — Total $ 64,182 $ — $ 64,182 $ — Long-term investments: Corporate notes 29,504 $ — 29,504 — Asset-backed securities 999 $ — 999 — Total $ 30,503 $ — $ 30,503 $ —

ACCOUNTS RECEIVABLE AND CONCENT

ACCOUNTS RECEIVABLE AND CONCENTRATION OF CREDIT RISK	9 Months Ended
	Sep. 30, 2016
Risks and Uncertainties [Abstract]
ACCOUNTS RECEIVABLE AND CONCENTRATION OF CREDIT RISK	ACCOUNTS RECEIVABLE AND CONCENTRATION OF CREDIT RISK The Company evaluates the creditworthiness of its customers and partners on a periodic basis and generally does not require collateral. The Company records unbilled accounts receivable, which represents amounts recognized as revenues for invoices that have not yet been sent to customers. This balance fluctuates depending on the contractual billing milestones and work performed related to projects specified in the contract. When the work performed is ahead of the billing milestones related to a services engagement, unbilled accounts receivable will be recorded. The balance of unbilled accounts receivable recorded within accounts receivable on the condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 was $9.4 million and $9.6 million , respectively. In addition, the Company records deferred revenues, which represent cash collections for which the Company cannot yet recognize revenues. The balance of deferred revenues also fluctuates depending on the contractual billing milestones and work performed related to projects specified in the contract. When the billing milestones and related cash collections occur prior to the product or service being delivered, deferred revenues will be recorded. The balance of deferred revenues recorded on the condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 was $134.4 million and $135.4 million , respectively. No customer or partner accounted for more than 10% of the Company’s accounts receivable as of September 30, 2016 or December 31, 2015 or for more than 10% of the Company’s revenues for the three and nine months ended September 30, 2016 or 2015 . The Company’s top five partners collectively represented 18% and 14% of the Company’s accounts receivables balance at September 30, 2016 and December 31, 2015 , respectively.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock Option Plan The Company’s 2006 Equity Incentive Plan, as amended and as assumed by Interactive Intelligence Group, Inc. (the "2006 Plan") authorizes the Board of Directors or the Compensation Committee, as applicable, to grant incentive and nonqualified stock options, stock appreciation rights, restricted stock, RSUs, performance shares, performance units and other stock-based awards. After adoption of the 2006 Plan by the Company’s shareholders in May 2006, the Company may no longer make any grants under previous plans. At the Company’s 2016 Annual Meeting of Shareholders held on May 18, 2016, the Company’s shareholders approved an amendment to the 2006 Plan which increased the number of shares available for issuance under the 2006 Plan by 2,600,000 shares. A maximum of 11,650,933 shares are available for delivery under the 2006 Plan. The number of shares available under the 2006 Plan is subject to adjustment for certain changes in the Company’s capital structure. The exercise price of options granted under the 2006 Plan is equal to the closing price of the Company’s common stock, as reported by The NASDAQ Global Select Market, on the business day immediately preceding the date of grant. As of September 30, 2016 , there were 2,983,674 shares of stock available for issuance for equity compensation awards under the 2006 Plan. The Company has historically granted both time-based and performance-based RSUs and three types of stock options. The Company's stock options are all granted with a term of six years from the grant date. The first type of stock option is subject only to time-based vesting. These stock options have historically been granted by the Company as annual grants to executives and other employees, to certain new employees and to newly-elected non-employee directors. These stock options vest in four equal annual installments beginning one year after the grant date. The fair value of these option grants is determined on the date of grant and the related compensation expense is recognized for the entire award on a straight-line basis over the requisite service period. The second type of stock option granted by the Company is performance-based and is subject to cancellation if the specified performance targets are not met. If the applicable performance targets have been achieved, the options will vest in four equal annual installments beginning one year after the grant date. The fair value of these stock option grants is determined on the date of grant and the related compensation expense is recognized on a tranche-by-tranche basis, with each tranche expensed equally over the requisite service period, including the initial period for which the specified performance targets must be met. The third type of stock option granted by the Company is director options and have historically been granted to non-employee directors annually at the Company's Annual Meeting of Shareholders during the second quarter of a fiscal year. These options are similar to the time-based options described above except that these director options vest one year after the grant date. The fair value of these option grants is determined on the date of the grant and the related compensation expense is recognized over one year . If an incentive stock option is granted to an employee who, at the time the option is granted, owns stock representing more than 10% percent of the voting power of all classes of our stock, the exercise price of the option may not be less than 110% of the market value per share on the date the option is granted and the term of the option shall be not more than five years from the date of grant. Performance-based and time-based RSUs can be granted by the Company to directors, executives, certain key employees and certain new employees. The fair value of the RSUs is determined on the date of grant. Time-based RSUs granted to executives, certain key employees, certain new employees and newly-elected non-employee directors vest in four equal annual installments beginning one year after the grant date. Time-based RSUs granted annually to non-employee directors vest in full one year after the grant date. Performance-based RSUs vest in four equal annual installments once the individual has achieved the performance targets and the related compensation expense is recognized on a tranche-by-tranche basis, with each tranche expensed equally over the requisite service period. RSUs are not included in issued and outstanding common stock until the shares are vested and settlement has occurred. During 2015, the Company elected to grant performance-based and time-based RSUs to directors, executives, certain key employees and certain new employees. During 2016, the Company utilized time-based and performance-based stock options and time-based and performance-based RSUs for stock-based compensation. The 2006 Plan may be terminated by the Company’s Board of Directors at any time. Stock-Based Compensation Expense Information The following table summarizes the allocation of stock-based compensation expense related to employee and director stock options and RSUs under FASB ASC Topic 718, Compensation – Stock Compensation ("FASB ASC 718") for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Stock-based compensation expense by category: Costs of recurring revenues $ 426 $ 462 $ 1,291 $ 1,405 Costs of license and hardware revenues 14 22 69 65 Costs of services revenues 253 183 795 476 Sales and marketing 1,552 1,199 3,917 2,914 Research and development 1,595 1,663 4,989 3,445 General and administrative 1,151 1,218 3,027 3,311 Total stock-based compensation expense $ 4,991 $ 4,747 $ 14,088 $ 11,616 Effect of stock-based compensation expense on net loss per share: Basic $ (0.23 ) $ (0.22 ) $ (0.64 ) $ (0.54 ) Diluted (0.23 ) (0.22 ) (0.64 ) (0.54 ) During the three and nine months ended September 30, 2016 , the Company capitalized $14,000 and $136,000 , respectively, of stock-based compensation expense related to capitalized software, compared to $100,000 and $1.3 million , respectively, during the same periods in 2015. Stock Option and RSU Valuation The Company estimated the fair value of stock options using the Black-Scholes valuation model. There were no stock options granted during the first nine months of 2015. The weighted-average estimated per option value of time-based and performance-based options granted under the 2006 Plan during the nine months ended September 30, 2016 used the following assumptions: Nine Months Ended September 30, Valuation assumptions for time-based options: 2016 Dividend yield — % Expected volatility 54.70 % - 57.26 % Risk-free interest rate 1.14 % - 1.29 % Expected life of option (in years) 4.25 Nine Months Ended September 30, Valuation assumptions for performance-based options: 2016 Dividend yield — % Expected volatility 54.70 % - 57.26 % Risk-free interest rate 1.14 % - 1.29 % Expected life of option (in years) 4.25 Nine Months Ended September 30, Valuation assumptions for annual director options: 2016 Dividend yield — % Expected volatility 55.95 % Risk-free interest rate 1.25 % Expected life of option (in years) 4.00 RSUs are valued using the fair market value of the Company’s stock on the date of grant and expense is recognized on a straight line basis taking into account an estimated forfeiture rate. Stock Option and RSU Activity The following table sets forth a summary of stock option activity for the nine months ended September 30, 2016 : Options Weighted-Average Exercise Price Balances, beginning of year 1,060,858 $ 35.85 Options granted 380,310 28.64 Options exercised (228,252 ) 23.72 Options cancelled, forfeited or expired (36,844 ) 39.35 Options outstanding 1,176,072 35.76 Option price range $ 6.66 - 66.39 Weighted-average fair value of options granted $ 13.03 Options exercisable 680,425 $ 36.06 The following table sets forth information regarding the Company’s stock options outstanding and exercisable as of September 30, 2016 : Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted- Average Remaining Contractual Life Weighted Average Exercise Price Number Weighted $ 6.66 — $ 19.66 16,200 0.49 $ 18.46 16,200 $ 18.46 24.50 — 24.50 211,864 1.46 24.50 200,614 24.50 25.00 — 27.53 39,000 1.52 25.97 39,000 25.97 27.73 — 27.73 311,649 5.35 27.73 — — 30.92 — 30.92 10,000 1.55 30.92 10,000 30.92 32.33 — 32.33 136,250 0.48 32.33 136,250 32.33 32.53 — 34.69 94,815 3.59 33.89 38,000 33.05 39.97 — 39.97 123,719 2.54 39.97 84,158 39.97 48.12 — 66.21 87,000 3.14 50.30 83,500 49.67 66.39 — 66.39 145,575 3.41 66.39 72,703 66.39 Total shares/average price 1,176,072 3.02 $ 35.76 680,425 $ 36.06 The total intrinsic value of options exercised during the quarter ended ended September 30, 2016 was $4.0 million . The aggregate intrinsic value of options outstanding as of September 30, 2016 was $29.6 million and the aggregate intrinsic value of options currently exercisable as of September 30, 2016 was $16.9 million . The aggregate intrinsic value represents the total intrinsic value, based on the Company’s closing stock price per share of $60.14 as of September 30, 2016 , which would have been realized by the option holders had all option holders exercised their options as of that date. The total number of in-the-money options exercisable as of September 30, 2016 represented approximately 604,222 shares with a weighted average exercise price of $32.24 . As of September 30, 2016 , there was $6.4 million of total unrecognized compensation expense related to non-vested stock options. This expense is expected to be recognized over the weighted average remaining vesting period of 2.50 years. The following table sets forth a summary of RSU activity for the nine months ended September 30, 2016 : Awards Weighted- Average Grant Date Price Balances, beginning of year 850,228 $ 45.54 RSUs granted 595,643 27.43 RSUs vested (275,713 ) 45.75 RSUs forfeited (107,512 ) 38.74 RSUs outstanding 1,062,646 36.02 As of September 30, 2016 , there was $32.2 million of total unrecognized compensation expense related to non-vested RSUs. This expense is expected to be recognized over the weighted average remaining vesting period of 2.68 years.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s effective tax rate, without the effect of discrete items, for the three and nine months ended September 30, 2016 was (12.8)% and (6.6)% , respectively, compared to (12.7)% and (10.0)% , respectively, for the same periods in 2015 . During the three and nine months ended September 30, 2016 , the Company recorded $1.1 million of benefit related to discrete items, including $1.0 million related to the release of the Company's Brazilian valuation allowance. During the three months ended September 30, 2015 , the Company recorded $101,000 of expense related to discrete items. During the nine months ended September 30, 2015 , the Company recorded a net credit of $1.6 million related to discrete items, including a net credit of $1.9 million recorded during the first quarter of 2015 to correct an error in the Company's valuation reserve for deferred tax assets. With the effects of these discrete items, the Company’s effective tax rate was 6.2% and (2.7)% for the three and nine months ended September 30, 2016 , compared to (13.8)% and (1.1)% for the three and nine months ended September 30, 2015 , respectively. The Company’s effective tax rate for the three and nine months ended September 30, 2016 was lower than the federal statutory tax rate of 35.0% primarily because the Company continues to record a full valuation allowance related to its domestic deferred tax assets.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation Related to the Merger On October 6, 2016, a putative class action lawsuit captioned Scott Fischer v. Interactive Intelligence Group, Inc. , et al., No. 1:16-cv-02666-TWP-MPB (the "Action") was filed in the United States District Court, Southern District of Indiana, Indianapolis Division (the "Court") against the Company and its directors, alleging certain violations of Section 14(a) and Section 20(a) of the Securities Exchange Act of 1934 in connection with the definitive proxy statement on Schedule 14A filed by the Company with the SEC on October 4, 2016 (the "Definitive Proxy Statement") for the proposed merger. In the Action, Plaintiff seeks, among other things, orders (i) certifying the lawsuit as a class action, (ii) enjoining the Company from closing the proposed merger until the Company discloses certain information, and (iii) rescinding the proposed merger if it is consummated or awarding damages to the Plaintiff and all other shareholders of the Company. On October 21, 2016, the Plaintiff filed a Motion for a Temporary Restraining Order and a Preliminary Injunction (the "Motion") to postpone the special meeting of the Company’s shareholders scheduled to be held on November 9, 2016, until the Company discloses certain information regarding the proposed merger. On October 28, 2016, the Company and its directors filed their brief in opposition to the Motion. The Court set a hearing on the Motion for November 4, 2016. On November 1, 2016, the Plaintiff voluntarily dismissed the Action with prejudice. Also on November 1, 2016, the Court acknowledged Plaintiff’s dismissal of the Action with prejudice, denied the Motion as moot, and vacated the hearing set for November 4, 2016. Other Legal Proceedings From time to time, the Company has received notification from competitors and other technology providers claiming that the Company’s technology infringes upon their proprietary rights. The Company cannot provide assurance that these matters can be resolved amicably without litigation, or that the Company will be able to enter into licensing arrangements on terms and conditions that would not have a material adverse effect on its business, financial condition or results of operations. During the second quarter of 2016, the Company reduced its accrual related to its disputed royalty agreement with Avaya, Inc. ("Avaya") by $2.1 million due to a change in the Company’s estimate of its expected liability as of June 30, 2016. This change in estimate resulted in a reduction to costs of license and hardware revenues on the Company's condensed consolidated statements of operations for the nine months ended September 30, 2016. On July 29, 2016, Avaya unilaterally terminated the royalty agreement. On August 1, 2016, the Company filed a lawsuit, captioned Interactive Intelligence, Inc. v. Avaya, Inc. , in the United States District Court for the Southern District of Indiana. In the lawsuit, the Company is seeking restitution and/or compensatory damages from Avaya related to the royalty agreement and is seeking declarations that, among other things, the Company does not infringe certain patents owned or controlled by Avaya and that such patents are invalid. The Company intends to vigorously pursue its claims; however, the ultimate outcome of this lawsuit cannot presently be determined. From time to time, the Company is also involved in certain legal proceedings in the ordinary course of conducting its business. While the ultimate liability pursuant to these actions cannot currently be determined, the Company believes these legal proceedings will not have a material adverse effect on its financial position or results of operations. Litigation, in general, and intellectual property litigation, in particular, can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict. Guarantees The Company provides indemnifications of varying scope and amount to certain customers against claims of intellectual property infringement made by third parties arising from the use of its product and service offerings. The Company’s software license and subscription agreements include certain provisions for indemnifying customers, in material compliance with their license agreement, against liabilities if the Company’s software products or services infringe upon a third party's intellectual property rights, over the life of the agreement. There is no maximum potential amount of future payments set under the guarantee. However, the typical arrangement states that the Company may at any time and at its option and expense: (i) procure the right of the customer to continue to use the Company’s software or services that may infringe a third party’s rights; (ii) modify its software or services so as to avoid infringement; or (iii) require the customer to return its software or stop using the service and the Company will provide a refund to the customer depending on the type of offering (on-premises or cloud) used by such customer. The customer’s failure to provide timely notice or reasonable assistance will relieve the Company of its obligations under this indemnification to the extent that it has been actually and materially prejudiced by such failure. To date, the Company has not incurred, nor does it expect to incur, any material related costs and, therefore, has not reserved for such liabilities, in accordance with FASB ASC Topic 460, Guarantees . The Company’s software license and subscription agreements also include a warranty that its software products and services will substantially conform to its software user documentation for a period of one year , provided the customer is in material compliance with the software license or subscription agreement. To date, the Company has not incurred any material costs associated with these product warranties, and as such, has not reserved for any such warranty liabilities in its operating results. Lease Commitments The Company’s world headquarters are located in approximately 425,000 square feet of space in four office buildings in Indianapolis, Indiana, the details of which are included below. Building Original Lease Effective Date Lessor Original Lease Expiration Lease Amendment Date Lease Amendment Type Amended Expiration HQ1 May 2014 Duke Realty Limited Partnership 6/30/2025 April 2016 Amendment 6/30/2027 HQ2 May 2014 Duke Realty Limited Partnership 6/30/2025 April 2016 Amendment 6/30/2027 HQ3 May 2014 Duke Realty Limited Partnership 3/31/2018 April 2016 Termination 9/30/2016 HQ4 May 2014 Duke Construction Limited Partnership/Duke Realty Limited Partnership 6/30/2025 April 2016 Amendment 6/30/2027 In September 2016, the Company entered into a one-month lease agreement with Duke Realty Limited Partnership for HQ3. This one-month lease agreement will expire on October 31, 2016, and the Company plans to vacate this space at that time. Other Contingencies Effective March 6, 2015, the Company entered into an agreement with Verint Americas Inc. ("Verint"), with an initial term of five years. Under the terms of the agreement, Verint granted to the Company limited rights to sell Verint product and the Company agreed to pay Verint license fees. If sales of Verint product are not maintained at levels as stated in the agreement, the Company could potentially owe Verint up to $5 million . No accrual has been recorded as of September 30, 2016 , as the Company anticipates selling at least the minimum amounts of Verint product set forth in the agreement. The Company has received and may continue to receive certain payroll tax credits and real estate tax abatements that were granted to the Company based upon certain growth projections. If the Company’s actual results are less than those projections, the Company may be subject to repayment of some or all of the tax credits or payment of additional real estate taxes in the case of the abatements. The Company does not believe that it will be subject to payment of any money related to these taxes; however, the Company cannot provide assurance as to the outcome.

DERIVATIVES

DERIVATIVES	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	DERIVATIVES The Company enters into derivative contracts to mitigate its foreign currency risk associated with transacting business internationally. The Company uses foreign currency forward contracts to hedge the revaluation exposure of its net monetary assets and liabilities including cash, accounts receivable, accounts payable and certain intercompany payables and receivables. These hedges are not designated under GAAP, and all realized and unrealized gains and losses are recorded as incurred within other income (expense) on the Company’s condensed consolidated statements of operations. The objective is to offset the gains and losses on the underlying exposures with the gains and losses from the forward contracts. The Company’s hedging policy prohibits entering into hedge contracts that are speculative in nature. The Company records the fair value of its outstanding hedge contracts in other current assets and accrued liabilities depending upon the market value of the forward contracts at each balance sheet date. The following table summarizes the notional amount and fair value of the Company’s outstanding currency contracts at September 30, 2016 and December 31, 2015 , respectively (in thousands): USD Equivalent Notional Amount September 30, December 31, Euro $ 3,365 $ 3,275 Japanese Yen 1,781 1,495 South African Rand 381 347 US Dollar 150 150 Total $ 5,677 $ 5,267 Fair Value USD (1) September 30, December 31, Derivative Asset $ 15 $ 32 ___________ (1) The fair value measurement of these derivative contracts falls within Level 2 of the fair value hierarchy as defined in FASB ASC 820. See Note 4 - Investments for further information. During the three and nine months ended September 30, 2016 , the Company recorded hedging losses of $185,000 and $670,000 , respectively, compared to a hedging loss of $139,000 and a hedging gain of $281,000 for the same periods last year. In May 2015, the Company issued $150 million aggregate principal amount of its 1.25% convertible senior notes (the "Notes") due June 1, 2020, unless earlier purchased by the Company or converted. In connection with the pricing of the Notes, the Company entered into privately-negotiated capped call transactions (the "capped call transactions") with each of Morgan Stanley & Co. LLC, JPMorgan Chase Bank, National Association, London Branch and Royal Bank of Canada. The capped call transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, the number of shares of the Company's common stock that underlie the Notes. The Company used approximately $12.8 million of the net proceeds from the issuance of the Notes to pay the cost of the capped call transactions. The strike price of the purchased call option is the same as the initial conversion price per share of the Notes of $61.24 . The capped call transactions have an initial cap price of $79.38 per share. These capped call transactions are recorded within equity on the condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 and are not remeasured as long as they continue to meet the conditions for equity classification.

CONVERTIBLE NOTES

CONVERTIBLE NOTES	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
CONVERTIBLE NOTES	CONVERTIBLE NOTES In May 2015, the Company issued $150 million aggregate principal amount of its Notes due June 1, 2020, unless earlier purchased by the Company or converted. Interest is payable semi-annually, in arrears, on June 1 and December 1 of each year. The Company made its first interest payment on the Notes on December 1, 2015. The Notes were sold in a private placement under a purchase agreement entered into by and among the Company and Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC, as representatives of the several initial purchasers named therein, for resale to qualified institutional buyers as defined in, and in reliance on, Rule 144A under the Securities Act of 1933, as amended. The Notes are governed by an indenture between the Company, as issuer, and U.S. Bank National Association, as trustee (the "indenture"). The Notes are unsecured and do not contain any financial covenants or any restrictions on the payment of dividends or the incurrence of senior debt or other indebtedness. If converted, holders of the Notes will receive, at the Company's election, cash, shares of the Company's common stock, or a combination of cash and shares. The initial conversion terms are as follows: Initial Conversion Rate per $1,000 Principal Amount Initial Conversion Price per Share 1.25% Convertible Senior Notes 16.3303 $ 61.24 Throughout the term of the Notes, the conversion rate may be adjusted upon the occurrence of certain events. Except for certain circumstances set forth in the indenture, holders of the Notes will not receive any cash payment representing accrued and unpaid interest upon conversion of a Note. Accrued but unpaid interest will be deemed to be paid in full upon conversion rather than canceled, extinguished or forfeited. Holders may convert the Notes under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on September 30, 2015 (and only during such calendar quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any 5 consecutive trading day period (the ‘‘measurement period’’) in which the trading price (as defined below) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day; • upon the occurrence of specified corporate transactions pursuant to the indenture; or • at any time on or after March 3, 2020. Holders of the Notes have the right to require the Company to repurchase for cash all or a portion of the Notes prior to maturity upon the occurrence of a fundamental change, including, among other things, a change of control, at a purchase price equal to 100% of the principal amount of the Notes to be repurchased plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, following certain corporate transactions that constitute a fundamental change, the Company is required to increase the conversion rate for a holder who elects to convert the Notes in connection with such fundamental change. In accounting for the issuances of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Notes as a whole. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense over the term of the Notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the Notes, the Company allocated the total amount incurred to the liability and equity components based on their relative values. Transaction costs attributable to the liability component are being amortized to expense using the effective interest rate method over the term of the Notes, and transaction costs attributable to the equity component were netted with the equity component in shareholders’ equity. The Notes consisted of the following (in thousands): As of September 30, 2016 December 31, 2015 Liability component: 1.25% Convertible Senior Notes (1) $ 150,000 $ 150,000 Less: debt discount, net (2) (24,231 ) (28,554 ) Less: debt issuance costs (2) (2,891 ) (3,424 ) Net carrying amount $ 122,878 $ 118,022 ___________ (1) The effective interest rate of the Notes is 6.25% . The interest rate is based on the interest rates of similar liabilities at the time of issuance that did not have an associated convertible feature. (2) Included in the condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 within convertible notes and is amortized over the term of the Notes using the effective interest rate method. The total estimated fair value of the Notes at September 30, 2016 was $173.1 million . The fair value was determined based on inputs that are observable in the market (Level 2) and was based on the closing trading price per $100 of the Notes as of the last day of trading for the third quarter of 2016. Based on the closing price of the Company’s common stock of $60.14 on September 30, 2016 , the if-converted value of the Notes fell below the principal amount by approximately $2.7 million . Based on the terms of the Notes, the Notes were not convertible at any time during the three and nine months ended September 30, 2016 .

SUMMARY OF CERTAIN ACCOUNTING18

SUMMARY OF CERTAIN ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS SUMMARY OF CERTAIN ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	In March 2016, the Financial Accounting Standards Board ("FASB") issued FASB Accounting Standards Update ("ASU") No. 2016-09, Compensation - Stock Compensation ("FASB ASU 2016-09"), which includes the simplification of several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. Public business entities must apply the new requirements in fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company has elected not to early adopt the amendments. The Company is evaluating the effect that FASB ASU 2016-09 will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued FASB ASU No. 2016-02, Leases ("FASB ASU 2016-02"), which amends the FASB Accounting Standards Codification ("ASC") to increase transparency and comparability among organizations by requiring companies to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Public business entities must apply the new requirements in fiscal years beginning after December 15, 2018, including interim periods within those years. All entities have the option of applying the amendments as of an earlier date for financial statements that have not been previously issued. The Company is evaluating the effect that FASB ASU 2016-02 will have on its consolidated financial statements and related disclosures. In May 2014, the FASB issued FASB ASU No. 2014-09, Revenue from Contracts with Customers ("FASB ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. FASB ASU 2014-09, as amended by subsequently issued ASUs, will replace most existing U.S. GAAP revenue recognition guidance when it becomes effective. As originally issued, the new standard was to become effective for the Company on January 1, 2017, and early adoption is not permitted. In August 2015, the FASB issued FASB ASU No. 2015-14, Deferral of the Effective Date, which declared a one-year deferral of the effective date of the new revenue recognition standard. As a result, the new standard will become effective for the Company beginning with the first quarter of 2018. FASB ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company expects to elect the retrospective transition method once the new standard becomes effective for the Company and is evaluating the effect that FASB ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet determined the effect of the guidance on its ongoing financial reporting.
Internal Use Software	The Company capitalizes certain costs related to its multi-tenant cloud offering, PureCloud ® ("PureCloud"), and certain projects described below for internal use in accordance with FASB ASC 350-40, Internal Use Software . Once a product has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. The capitalization of costs ceases upon completion of all substantial testing. Costs incurred in the preliminary stages of development, maintenance and training costs are expensed as incurred.

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Calculation Of Basic And Diluted Net Income Per Share	The following table sets forth the calculation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net loss, as reported (A) $ (5,427 ) $ (9,752 ) $ (28,838 ) $ (18,295 ) Weighted average shares of common stock outstanding (B) 22,111 21,664 22,114 21,568 Dilutive effect of employee stock options and RSUs — — — — Common stock and common stock equivalents (C) 22,111 21,664 22,114 21,568 Net loss per share: Basic (A/B) $ (0.25 ) $ (0.45 ) $ (1.30 ) $ (0.85 ) Diluted (A/C) (0.25 ) (0.45 ) (1.30 ) (0.85 )

INVESTMENTS (Tables)

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Financial Assets Measured At Fair Value	The following table sets forth a summary of the Company’s financial assets, classified as cash and cash equivalents, short-term investments and long-term investments on its condensed consolidated balance sheets, measured at fair value as of September 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements at September 30, 2016 Using Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash & cash equivalents: Cash $ 101,696 $ 101,696 $ — $ — Money market funds 19,653 19,653 — — Total $ 121,349 $ 121,349 $ — $ — Short-term investments: Corporate notes $ 24,254 $ — $ 24,254 $ — U.S. government securities 8,105 — 8,105 — Commercial paper 5,991 — 5,991 — Asset-backed securities 5,592 — 5,592 — Agency bonds 4,996 — 4,996 — Total $ 48,938 $ — $ 48,938 $ — Long-term investments: Corporate notes $ 33,550 $ — $ 33,550 $ — U.S. government securities 11,026 — 11,026 — Asset-backed securities 1,509 — 1,509 — Total $ 46,085 $ — $ 46,085 $ — Fair Value Measurements at December 31, 2015 Using Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Cash & cash equivalents: Cash $ 76,966 $ 76,966 $ — $ — Money market funds 17,842 17,842 — — Total $ 94,808 $ 94,808 $ — $ — Short-term investments: Corporate notes $ 27,105 $ — $ 27,105 $ — Agency bonds 27,002 — 27,002 — Asset-backed securities 4,681 — 4,681 — U.S. government securities 3,896 — 3,896 — Commercial paper 1,498 — 1,498 — Total $ 64,182 $ — $ 64,182 $ — Long-term investments: Corporate notes 29,504 $ — 29,504 — Asset-backed securities 999 $ — 999 — Total $ 30,503 $ — $ 30,503 $ —

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Allocation of Stock-Based Compensation Expense	The following table summarizes the allocation of stock-based compensation expense related to employee and director stock options and RSUs under FASB ASC Topic 718, Compensation – Stock Compensation ("FASB ASC 718") for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Stock-based compensation expense by category: Costs of recurring revenues $ 426 $ 462 $ 1,291 $ 1,405 Costs of license and hardware revenues 14 22 69 65 Costs of services revenues 253 183 795 476 Sales and marketing 1,552 1,199 3,917 2,914 Research and development 1,595 1,663 4,989 3,445 General and administrative 1,151 1,218 3,027 3,311 Total stock-based compensation expense $ 4,991 $ 4,747 $ 14,088 $ 11,616 Effect of stock-based compensation expense on net loss per share: Basic $ (0.23 ) $ (0.22 ) $ (0.64 ) $ (0.54 ) Diluted (0.23 ) (0.22 ) (0.64 ) (0.54 )
Schedule of Valuation Assumptions	The weighted-average estimated per option value of time-based and performance-based options granted under the 2006 Plan during the nine months ended September 30, 2016 used the following assumptions: Nine Months Ended September 30, Valuation assumptions for time-based options: 2016 Dividend yield — % Expected volatility 54.70 % - 57.26 % Risk-free interest rate 1.14 % - 1.29 % Expected life of option (in years) 4.25 Nine Months Ended September 30, Valuation assumptions for performance-based options: 2016 Dividend yield — % Expected volatility 54.70 % - 57.26 % Risk-free interest rate 1.14 % - 1.29 % Expected life of option (in years) 4.25 Nine Months Ended September 30, Valuation assumptions for annual director options: 2016 Dividend yield — % Expected volatility 55.95 % Risk-free interest rate 1.25 % Expected life of option (in years) 4.00
Summary of Stock Option Activity	The following table sets forth a summary of stock option activity for the nine months ended September 30, 2016 : Options Weighted-Average Exercise Price Balances, beginning of year 1,060,858 $ 35.85 Options granted 380,310 28.64 Options exercised (228,252 ) 23.72 Options cancelled, forfeited or expired (36,844 ) 39.35 Options outstanding 1,176,072 35.76 Option price range $ 6.66 - 66.39 Weighted-average fair value of options granted $ 13.03 Options exercisable 680,425 $ 36.06
Summary of Stock Options Outstanding and Exercisable	The following table sets forth information regarding the Company’s stock options outstanding and exercisable as of September 30, 2016 : Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted- Average Remaining Contractual Life Weighted Average Exercise Price Number Weighted $ 6.66 — $ 19.66 16,200 0.49 $ 18.46 16,200 $ 18.46 24.50 — 24.50 211,864 1.46 24.50 200,614 24.50 25.00 — 27.53 39,000 1.52 25.97 39,000 25.97 27.73 — 27.73 311,649 5.35 27.73 — — 30.92 — 30.92 10,000 1.55 30.92 10,000 30.92 32.33 — 32.33 136,250 0.48 32.33 136,250 32.33 32.53 — 34.69 94,815 3.59 33.89 38,000 33.05 39.97 — 39.97 123,719 2.54 39.97 84,158 39.97 48.12 — 66.21 87,000 3.14 50.30 83,500 49.67 66.39 — 66.39 145,575 3.41 66.39 72,703 66.39 Total shares/average price 1,176,072 3.02 $ 35.76 680,425 $ 36.06
Summary of RSU activity	The following table sets forth a summary of RSU activity for the nine months ended September 30, 2016 : Awards Weighted- Average Grant Date Price Balances, beginning of year 850,228 $ 45.54 RSUs granted 595,643 27.43 RSUs vested (275,713 ) 45.75 RSUs forfeited (107,512 ) 38.74 RSUs outstanding 1,062,646 36.02

DERIVATIVES (Tables)

DERIVATIVES (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule Of Derivative Notional Amount And Fair Value	The following table summarizes the notional amount and fair value of the Company’s outstanding currency contracts at September 30, 2016 and December 31, 2015 , respectively (in thousands): USD Equivalent Notional Amount September 30, December 31, Euro $ 3,365 $ 3,275 Japanese Yen 1,781 1,495 South African Rand 381 347 US Dollar 150 150 Total $ 5,677 $ 5,267 Fair Value USD (1) September 30, December 31, Derivative Asset $ 15 $ 32 ___________ (1) The fair value measurement of these derivative contracts falls within Level 2 of the fair value hierarchy as defined in FASB ASC 820. See Note 4 - Investments for further information.

CONVERTIBLE NOTES (Tables)

CONVERTIBLE NOTES (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Debt Conversions	If converted, holders of the Notes will receive, at the Company's election, cash, shares of the Company's common stock, or a combination of cash and shares. The initial conversion terms are as follows: Initial Conversion Rate per $1,000 Principal Amount Initial Conversion Price per Share 1.25% Convertible Senior Notes 16.3303 $ 61.24
Schedule of Long-term Debt Instruments	The Notes consisted of the following (in thousands): As of September 30, 2016 December 31, 2015 Liability component: 1.25% Convertible Senior Notes (1) $ 150,000 $ 150,000 Less: debt discount, net (2) (24,231 ) (28,554 ) Less: debt issuance costs (2) (2,891 ) (3,424 ) Net carrying amount $ 122,878 $ 118,022 ___________ (1) The effective interest rate of the Notes is 6.25% . The interest rate is based on the interest rates of similar liabilities at the time of issuance that did not have an associated convertible feature. (2) Included in the condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 within convertible notes and is amortized over the term of the Notes using the effective interest rate method.

FINANCIAL STATEMENT PRESENTAT24

FINANCIAL STATEMENT PRESENTATION (Details) - Genesys Merger Agreement [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Aug. 30, 2016
Business Acquisition [Line Items]
Business Acquisition, Share Price (in dollars per share)			$ 60.50
Business Acquisition, Termination Costs			$ 43
Business Combination, Acquisition Related Costs	$ 1.6	$ 1.6
Genesys [Member]
Business Acquisition [Line Items]
Business Acquisition, Termination Costs			$ 86

SUMMARY OF CERTAIN ACCOUNTING25

SUMMARY OF CERTAIN ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Capitalized costs related to development	$ 300,000	$ 900,000	$ 1,500,000	$ 11,700,000
Capitalized costs related to internal use software	$ 2,400,000	$ 500,000	$ 3,200,000	$ 3,500,000

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net (loss), as reported	$ (5,427)	$ (9,752)	$ (28,838)	$ (18,295)
Weighted average shares of common stock outstanding (shares)	22,111,000	21,664,000	22,114,000	21,568,000
Dilutive effect of employee stock options and RSUs	0	0	0	0
Common stock and common stock equivalents (shares)	22,111,000	21,664,000	22,114,000	21,568,000
Basic (A/B) (in dollars per share)	$ (0.25)	$ (0.45)	$ (1.30)	$ (0.85)
Diluted (A/C) (in dollars per share)	$ (0.25)	$ (0.45)	$ (1.30)	$ (0.85)
Stock options and RSUs excluded from diluted net income (loss) per share (shares)	157,000	639,000	266,000	578,000

INVESTMENTS (Financial Assets M

INVESTMENTS (Financial Assets Measured At Fair Value) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	$ 121,349	$ 94,808
Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maturity period	1 year
Investments, Total	$ 48,938	64,182
Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maturity period	3 years
Investments, Total	$ 46,085	30,503
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	121,349	94,808
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	0	0
Significant Other Observable Inputs (Level 2) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	48,938	64,182
Significant Other Observable Inputs (Level 2) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	46,085	30,503
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	0	0
Significant Unobservable Inputs (Level 3) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Significant Unobservable Inputs (Level 3) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	101,696	76,966
Cash | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	101,696	76,966
Cash | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	0	0
Cash | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	0	0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	19,653	17,842
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	19,653	17,842
Money market funds | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	0	0
Money market funds | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash & cash equivalents, Total	0	0
Corporate notes | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	24,254	27,105
Corporate notes | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	33,550	29,504
Corporate notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Corporate notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Corporate notes | Significant Other Observable Inputs (Level 2) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	24,254	27,105
Corporate notes | Significant Other Observable Inputs (Level 2) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	33,550	29,504
Corporate notes | Significant Unobservable Inputs (Level 3) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Corporate notes | Significant Unobservable Inputs (Level 3) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
U.S. government securities | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	8,105	3,896
U.S. government securities | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	11,026
U.S. government securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
U.S. government securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0
U.S. government securities | Significant Other Observable Inputs (Level 2) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	8,105	3,896
U.S. government securities | Significant Other Observable Inputs (Level 2) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	11,026
U.S. government securities | Significant Unobservable Inputs (Level 3) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
U.S. government securities | Significant Unobservable Inputs (Level 3) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0
Commercial paper | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	5,991	1,498
Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Commercial paper | Significant Other Observable Inputs (Level 2) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	5,991	1,498
Commercial paper | Significant Unobservable Inputs (Level 3) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Asset-backed securities | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	5,592	4,681
Asset-backed securities | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	1,509	999
Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Asset-backed securities | Significant Other Observable Inputs (Level 2) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	5,592	4,681
Asset-backed securities | Significant Other Observable Inputs (Level 2) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	1,509	999
Asset-backed securities | Significant Unobservable Inputs (Level 3) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Asset-backed securities | Significant Unobservable Inputs (Level 3) | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Agency bonds | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	4,996	27,002
Agency bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	0	0
Agency bonds | Significant Other Observable Inputs (Level 2) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	4,996	27,002
Agency bonds | Significant Unobservable Inputs (Level 3) | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Total	$ 0	$ 0

ACCOUNTS RECEIVABLE AND CONCE28

ACCOUNTS RECEIVABLE AND CONCENTRATION OF CREDIT RISK (Details) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)customer	Sep. 30, 2015customer	Dec. 31, 2015USD ($)customer
Concentration Risk [Line Items]
Unbilled accounts receivable | $	$ 9.4		$ 9.6
Deferred Revenue | $	$ 134.4		$ 135.4
Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Number of customers or partners with significant holding	0		0
Percentage of concentration risk	10.00%		10.00%
Accounts Receivable | Top Five Partners
Concentration Risk [Line Items]
Number of customers or partners with significant holding	5		5
Percentage of concentration risk	18.00%		14.00%
Revenue | Customer Concentration Risk
Concentration Risk [Line Items]
Number of customers or partners with significant holding	0	0
Percentage of concentration risk	10.00%	10.00%

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details)	May 18, 2016shares	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)itemstock_option_type$ / sharesshares	Sep. 30, 2015USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of types of stock options | stock_option_type				3
Total intrinsic value of options exercised | $				$ 4,000,000
Aggregate intrinsic value of options outstanding | $		$ 29,600,000		29,600,000
Aggregate intrinsic value of options currently exercisable | $		$ 16,900,000		$ 16,900,000
Company's closing stock price per share | $ / shares		$ 60.14		$ 60.14
Total unrecognized compensation cost related to non-vested stock options | $		$ 6,400,000		$ 6,400,000
Weighted average remaining vesting period				2 years 6 months
Time-Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equal annual installments | item				4
Award vesting period				1 year
Performance-Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equal annual installments | item				4
Award vesting period				1 year
Director Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period				1 year
Period of recognizing compensation expense				1 year
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (shares)				380,310	0
Total number of in-the-money options exercisable		680,425		680,425
Weighted average exercise price (dollars per share) | $ / shares		$ 36.06		$ 36.06
In the Money Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of in-the-money options exercisable		604,222		604,222
Weighted average exercise price (dollars per share) | $ / shares		$ 32.24		$ 32.24
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (shares)				595,643
Weighted average remaining vesting period				2 years 8 months 5 days
Total unrecognized compensation cost related to non-vested RSUs | $		$ 32,200,000		$ 32,200,000
Capitalized software, net
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, capitalized amount | $		$ 14,000	$ 100,000	$ 136,000	$ 1,300,000
2006 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares available for issuance	2,600,000
Shares available for delivery	11,650,933
Shares of stock available for issuance for equity compensation awards		2,983,674		2,983,674

STOCK-BASED COMPENSATION (Alloc

STOCK-BASED COMPENSATION (Allocation of Stock-Based Compensation Expense) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 4,991	$ 4,747	$ 14,088	$ 11,616
Effects of Stock-based compensation: Basic (dollars per share)	$ (0.23)	$ (0.22)	$ (0.64)	$ (0.54)
Effects of Stock-based compensation: Diluted (dollars per share)	$ (0.23)	$ (0.22)	$ (0.64)	$ (0.54)
Costs of recurring revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 426	$ 462	$ 1,291	$ 1,405
Costs of license and hardware revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	14	22	69	65
Costs of services revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	253	183	795	476
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	1,552	1,199	3,917	2,914
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	1,595	1,663	4,989	3,445
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 1,151	$ 1,218	$ 3,027	$ 3,311

STOCK-BASED COMPENSATION (Sched

STOCK-BASED COMPENSATION (Schedule of Valuation Assumptions) (Details)	9 Months Ended
	Sep. 30, 2016
Time-Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%
Expected volatility, minimum	54.70%
Expected volatility, maximum	57.26%
Risk-free interest rate, minimum	1.14%
Risk-free interest rate, maximum	1.29%
Expected life of option (in years)	4 years 3 months
Performance-Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%
Expected volatility, minimum	54.70%
Expected volatility, maximum	57.26%
Risk-free interest rate, minimum	1.14%
Risk-free interest rate, maximum	1.29%
Expected life of option (in years)	4 years 3 months
Director Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%
Expected volatility	55.95%
Risk-free interest rate	1.25%
Expected life of option (in years)	4 years

STOCK-BASED COMPENSATION (Summa

STOCK-BASED COMPENSATION (Summary of Stock Option Activity) (Details) - Stock Options - $ / shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 13.03
Options
Balances, beginning of year (shares)	1,060,858
Options granted (shares)	380,310	0
Exercise of stock options (shares)	(228,252)
Options cancelled, forfeited or expired (shares)	(36,844)
Options outstanding at end of year (shares)	1,176,072
Option price range, lower limit (dollars per share)	$ 6.66
Option price range, upper limit (dollars per share)	$ 66.39
Options exercisable (shares)	680,425
Weighted-Average Exercise Price
Weighted-Average Exercise Price, Balance, beginning of year (dollars per share)	$ 35.85
Weighted-Average Exercise Price, Options granted (dollars per share)	28.64
Weighted-Average Exercise Price, Options exercised (dollars per share)	23.72
Weighted-Average Exercise Price, Options cancelled, forfeited or expired (dollars per share)	39.35
Weighted-Average Exercise Price, Options outstanding (dollars per share)	35.76
Weighted-Average Exercise Price, Options exercisable (dollars per share)	$ 36.06

STOCK-BASED COMPENSATION (Sum33

STOCK-BASED COMPENSATION (Summary of Stock Options Outstanding and Exercisable) (Details)	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, number (shares) | shares	1,176,072
Options outstanding, weighted-average remaining contractual life (in years)	3 years 7 days
Options outstanding, weighted-average exercise price (dollars per share)	$ 35.76
Options exercisable, number | shares	680,425
Options exercisable, weighted-average exercise price (dollars per share)	$ 36.06
Range 1
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Option price range, lower limit (dollars per share)	6.66
Option price range, upper limit (dollars per share)	$ 19.66
Options outstanding, number (shares) | shares	16,200
Options outstanding, weighted-average remaining contractual life (in years)	5 months 27 days
Options outstanding, weighted-average exercise price (dollars per share)	$ 18.46
Options exercisable, number | shares	16,200
Options exercisable, weighted-average exercise price (dollars per share)	$ 18.46
Range 2
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Option price range, lower limit (dollars per share)	24.50
Option price range, upper limit (dollars per share)	$ 24.50
Options outstanding, number (shares) | shares	211,864
Options outstanding, weighted-average remaining contractual life (in years)	1 year 5 months 16 days
Options outstanding, weighted-average exercise price (dollars per share)	$ 24.50
Options exercisable, number | shares	200,614
Options exercisable, weighted-average exercise price (dollars per share)	$ 24.50
Range 3
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Option price range, lower limit (dollars per share)	25
Option price range, upper limit (dollars per share)	$ 27.53
Options outstanding, number (shares) | shares	39,000
Options outstanding, weighted-average remaining contractual life (in years)	1 year 6 months 7 days
Options outstanding, weighted-average exercise price (dollars per share)	$ 25.97
Options exercisable, number | shares	39,000
Options exercisable, weighted-average exercise price (dollars per share)	$ 25.97
Range 4
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Option price range, lower limit (dollars per share)	27.73
Option price range, upper limit (dollars per share)	$ 27.73
Options outstanding, number (shares) | shares	311,649
Options outstanding, weighted-average remaining contractual life (in years)	5 years 4 months 6 days
Options outstanding, weighted-average exercise price (dollars per share)	$ 27.73
Options exercisable, number | shares	0
Options exercisable, weighted-average exercise price (dollars per share)	$ 0
Range 5
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Option price range, lower limit (dollars per share)	30.92
Option price range, upper limit (dollars per share)	$ 30.92
Options outstanding, number (shares) | shares	10,000
Options outstanding, weighted-average remaining contractual life (in years)	1 year 6 months 18 days
Options outstanding, weighted-average exercise price (dollars per share)	$ 30.92
Options exercisable, number | shares	10,000
Options exercisable, weighted-average exercise price (dollars per share)	$ 30.92
Range 6
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Option price range, lower limit (dollars per share)	32.33
Option price range, upper limit (dollars per share)	$ 32.33
Options outstanding, number (shares) | shares	136,250
Options outstanding, weighted-average remaining contractual life (in years)	5 months 23 days
Options outstanding, weighted-average exercise price (dollars per share)	$ 32.33
Options exercisable, number | shares	136,250
Options exercisable, weighted-average exercise price (dollars per share)	$ 32.33
Range 7
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Option price range, lower limit (dollars per share)	32.53
Option price range, upper limit (dollars per share)	$ 34.69
Options outstanding, number (shares) | shares	94,815
Options outstanding, weighted-average remaining contractual life (in years)	3 years 7 months 2 days
Options outstanding, weighted-average exercise price (dollars per share)	$ 33.89
Options exercisable, number | shares	38,000
Options exercisable, weighted-average exercise price (dollars per share)	$ 33.05
Range 8
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Option price range, lower limit (dollars per share)	39.97
Option price range, upper limit (dollars per share)	$ 39.97
Options outstanding, number (shares) | shares	123,719
Options outstanding, weighted-average remaining contractual life (in years)	2 years 6 months 15 days
Options outstanding, weighted-average exercise price (dollars per share)	$ 39.97
Options exercisable, number | shares	84,158
Options exercisable, weighted-average exercise price (dollars per share)	$ 39.97
Range 9
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Option price range, lower limit (dollars per share)	48.12
Option price range, upper limit (dollars per share)	$ 66.21
Options outstanding, number (shares) | shares	87,000
Options outstanding, weighted-average remaining contractual life (in years)	3 years 1 month 21 days
Options outstanding, weighted-average exercise price (dollars per share)	$ 50.30
Options exercisable, number | shares	83,500
Options exercisable, weighted-average exercise price (dollars per share)	$ 49.67
Range 10
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Option price range, lower limit (dollars per share)	66.39
Option price range, upper limit (dollars per share)	$ 66.39
Options outstanding, number (shares) | shares	145,575
Options outstanding, weighted-average remaining contractual life (in years)	3 years 4 months 28 days
Options outstanding, weighted-average exercise price (dollars per share)	$ 66.39
Options exercisable, number | shares	72,703
Options exercisable, weighted-average exercise price (dollars per share)	$ 66.39

STOCK-BASED COMPENSATION (Sum34

STOCK-BASED COMPENSATION (Summary of RSU Activity) (Details) - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balances, beginning of year (shares) | shares	850,228
RSUs granted (shares) | shares	595,643
RSUs vested (shares) | shares	(275,713)
RSUs forfeited (shares) | shares	(107,512)
Options outstanding at end of year (shares) | shares	1,062,646
Weighted-Average Exercise Price, Balance, beginning of year (dollars per share) | $ / shares	$ 45.54
Weighted-Average Exercise Price, RSUs granted (dollars per share) | $ / shares	27.43
Weighted-Average Exercise Price, RSUs vested (dollars per share) | $ / shares	45.75
Weighted-Average Exercise Price, RSUs forfeited (dollars per share) | $ / shares	38.74
Weighted-Average Exercise Price, Options outstanding (dollars per share) | $ / shares	$ 36.02

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Effective tax rate without the effect of discrete item	(12.80%)	(12.70%)		(6.60%)	(10.00%)
Discrete items	$ 1,000,000	$ 101,000	$ (1,900,000)	$ 1,100,000	$ (1,600,000)
Effective income tax rate	6.20%	(13.80%)		(2.70%)	(1.10%)
Federal statutory tax rate				35.00%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Narrative) (Details)	Mar. 06, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2016building	Sep. 30, 2016ft²
Operating Leased Assets [Line Items]
Standard Product Warranty Period				1 year
Other Commitment	$ 5,000,000
Verint Agreement, Term	5 years
Loss Contingency Accrual, Provision		$ 2,100,000
Number Of Office Buildings | building			4
Size Of Building | ft²				425,000

COMMITMENTS AND CONTINGENCIES37

COMMITMENTS AND CONTINGENCIES (Schedule Of Contractual Obligations) (Details) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	May 31, 2015USD ($)$ / shares$ / unit	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Debt Instrument [Line Items]
Payment for capped call premiums		$ 0	$ 12,750
Convertible 1.25% Senior Notes | Call Option | Convertible Debt
Debt Instrument [Line Items]
Payment for capped call premiums	$ 12,800
Strike price (usd per share) | $ / shares	$ 61.24
Initial cap price (usd per share) | $ / unit	79.38

ACQUISITIONS (Fair Value Of The

ACQUISITIONS (Fair Value Of The Intangible And Other Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill	$ 42,661	$ 41,848

DERIVATIVES (Details)

DERIVATIVES (Details)	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2015USD ($)$ / shares$ / unit	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Derivative [Line Items]
Hedging gains (losses)		$ (185,000)	$ (139,000)	$ (670,000)	$ 281,000
Payment for capped call premiums				$ 0	$ 12,750,000
Convertible Debt | Convertible 1.25% Senior Notes
Derivative [Line Items]
Outstanding debt	$ 150,000,000
Interest rate	1.25%
Call Option | Convertible Debt | Convertible 1.25% Senior Notes
Derivative [Line Items]
Payment for capped call premiums	$ 12,800,000
Strike price (usd per share) | $ / shares	$ 61.24
Initial cap price (usd per share) | $ / unit	79.38

DERIVATIVES (Schedule Of Deriva

DERIVATIVES (Schedule Of Derivative Notional Amount And Fair Value) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Notional Amount	$ 5,677	$ 5,267
Derivative Asset
Derivatives, Fair Value [Line Items]
Derivative Asset	15	32
Euro
Derivatives, Fair Value [Line Items]
Notional Amount	3,365	3,275
Japanese Yen
Derivatives, Fair Value [Line Items]
Notional Amount	1,781	1,495
South African Rand
Derivatives, Fair Value [Line Items]
Notional Amount	381	347
US Dollar
Derivatives, Fair Value [Line Items]
Notional Amount	$ 150	$ 150

CONVERTIBLE NOTES (Details)

CONVERTIBLE NOTES (Details)	1 Months Ended	9 Months Ended
	May 31, 2015USD ($)trading_days$ / shares$ / unit	Sep. 30, 2016USD ($)$ / shares	Sep. 30, 2015USD ($)
Debt Instrument [Line Items]
Payment for capped call premiums		$ 0	$ 12,750,000
Company's closing stock price per share | $ / shares		$ 60.14
Common Stock
Debt Instrument [Line Items]
Company's closing stock price per share | $ / shares		$ 60.14
Convertible Debt | Convertible 1.25% Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 150,000,000
Redemption price in event of change of control, percentage	100.00%
If-converted value amount below principal		$ 2,700,000
Convertible Debt | Convertible 1.25% Senior Notes | Calendar quarter ending on September 30, 2015
Debt Instrument [Line Items]
Number of trading days, whether or not consecutive | trading_days	20
Number of consecutive trading days	30 days
Percentage of the conversion price	130.00%
Convertible Debt | Convertible 1.25% Senior Notes | Measurement period
Debt Instrument [Line Items]
Number of trading days, whether or not consecutive | trading_days	5
Number of consecutive trading days	5 days
Percentage of the conversion price	98.00%
Call Option | Convertible Debt | Convertible 1.25% Senior Notes
Debt Instrument [Line Items]
Payment for capped call premiums	$ 12,800,000
Strike price (usd per share) | $ / shares	$ 61.24
Initial cap price (usd per share) | $ / unit	79.38
Significant Other Observable Inputs (Level 2) | Convertible Debt | Convertible 1.25% Senior Notes
Debt Instrument [Line Items]
Fair value of notes		$ 173,100,000

CONVERTIBLE NOTES (Schedule of

CONVERTIBLE NOTES (Schedule of Debt Conversions) (Details) - Convertible Debt - Convertible 1.25% Senior Notes	1 Months Ended
	May 31, 2015$ / shares
Debt Instrument [Line Items]
Initial Conversion Rate per $1,000 Principal Amount	16.3303
Initial Conversion Price per Share (dollars per share)	$ 61.24

CONVERTIBLE NOTES (Convertible

CONVERTIBLE NOTES (Convertible Debt) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Convertible Debt | Convertible 1.25% Senior Notes
Debt Instrument [Line Items]
Par Value Outstanding	$ 150,000	$ 150,000

CONVERTIBLE NOTES (Schedule o44

CONVERTIBLE NOTES (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Less: debt discount, net	$ (24,231)	$ (28,554)
Less: debt issuance costs	(2,891)	(3,424)
Convertible notes	122,878	118,022
Convertible Debt | Convertible 1.25% Senior Notes
Debt Instrument [Line Items]
Par Value Outstanding	$ 150,000	$ 150,000
Effective interest rate	6.25%