Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 26, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PAYC | |
Entity Registrant Name | Paycom Software, Inc. | |
Entity Central Index Key | 1,590,955 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 60,111,318 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 74,496 | $ 50,714 |
Accounts receivable | 1,479 | 2,354 |
Prepaid expenses | 3,991 | 3,531 |
Inventory | 355 | 1,093 |
Income tax receivable | 4,316 | 6,743 |
Current assets before funds held for clients | 84,637 | 64,435 |
Funds held for clients | 593,041 | 696,703 |
Total current assets | 677,678 | 761,138 |
Property and equipment, net | 87,285 | 58,858 |
Deposits and other assets | 1,010 | 1,286 |
Goodwill | 51,889 | 51,889 |
Intangible assets, net | 2,274 | 3,484 |
Deferred income tax assets, net | 859 | |
Total assets | 820,995 | 876,655 |
Current liabilities: | ||
Accounts payable | 4,850 | 4,899 |
Accrued commissions and bonuses | 5,381 | 8,687 |
Accrued payroll and vacation | 6,680 | 2,898 |
Deferred revenue | 4,821 | 3,726 |
Current portion of long-term debt | 1,090 | 886 |
Accrued expenses and other current liabilities | 13,031 | 9,735 |
Current liabilities before client funds obligation | 35,853 | 30,831 |
Client funds obligation | 593,041 | 696,703 |
Total current liabilities | 628,894 | 727,534 |
Deferred income tax liabilities, net | 641 | |
Long-term deferred revenue | 32,064 | 25,310 |
Net long-term debt, less current portion | 29,000 | 24,856 |
Total long-term liabilities | 61,064 | 50,807 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.01 par value (100,000,000 shares authorized, 58,386,260 and 57,119,873 shares issued at September 30, 2016 and December 31, 2015, respectively; 57,898,505 and 57,119,873 shares outstanding at September 30, 2016 and December 31, 2015, respectively) | 584 | 571 |
Additional paid-in capital | 91,413 | 71,135 |
Retained earnings | 61,815 | 26,608 |
Treasury stock, at cost (487,755 and 0 shares at September 30, 2016 and December 31, 2015, respectively) | (22,775) | |
Total stockholders' equity | 131,037 | 98,314 |
Total liabilities and stockholders' equity | $ 820,995 | $ 876,655 |
Consolidated Balance Sheets (u3
Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 58,386,260 | 57,119,873 |
Common stock, shares outstanding | 57,898,505 | 57,119,873 |
Treasury stock, shares | 487,755 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Recurring | $ 75,857 | $ 54,233 | $ 237,253 | $ 156,404 |
Implementation and other | 1,468 | 1,107 | 4,078 | 3,131 |
Total revenues | 77,325 | 55,340 | 241,331 | 159,535 |
Cost of revenues | ||||
Operating expenses | 13,227 | 7,964 | 34,491 | 22,569 |
Depreciation and amortization | 1,521 | 945 | 4,093 | 2,642 |
Total cost of revenues | 14,748 | 8,909 | 38,584 | 25,211 |
Administrative expenses | ||||
Sales and marketing | 29,274 | 23,774 | 82,702 | 61,744 |
Research and development | 6,232 | 2,349 | 14,294 | 6,123 |
General and administrative | 24,457 | 11,996 | 54,883 | 34,076 |
Depreciation and amortization | 2,032 | 1,457 | 5,578 | 4,180 |
Total administrative expenses | 61,995 | 39,576 | 157,457 | 106,123 |
Total operating expenses | 76,743 | 48,485 | 196,041 | 131,334 |
Operating income | 582 | 6,855 | 45,290 | 28,201 |
Interest expense | (252) | (343) | (733) | (1,067) |
Other income (expense), net | (213) | 98 | (63) | 150 |
Income before income taxes | 117 | 6,610 | 44,494 | 27,284 |
(Benefit) provision for income taxes | (6,081) | 2,763 | 9,287 | 11,496 |
Net income | $ 6,198 | $ 3,847 | $ 35,207 | $ 15,788 |
Earnings per share, basic | $ 0.11 | $ 0.07 | $ 0.61 | $ 0.28 |
Earnings per share, diluted | $ 0.10 | $ 0.07 | $ 0.59 | $ 0.27 |
Weighted average shares outstanding: | ||||
Basic | 57,819,734 | 57,050,684 | 57,515,846 | 56,287,979 |
Diluted | 58,907,281 | 58,367,830 | 58,793,479 | 57,771,680 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 35,207 | $ 15,788 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,671 | 6,822 |
Amortization of debt issuance costs | 96 | 108 |
Net loss on disposition of property and equipment | 230 | 15 |
Stock-based compensation expense | 18,742 | 1,807 |
Deferred income taxes, net | (1,500) | (1,514) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 875 | (592) |
Prepaid expenses | (460) | (474) |
Inventory | 963 | 245 |
Deposits and other assets | 276 | (336) |
Accounts payable | (3,658) | (850) |
Income taxes, net | 2,427 | 2,543 |
Accrued commissions and bonuses | (3,306) | (571) |
Accrued payroll and vacation | 3,782 | 2,524 |
Deferred revenue | 7,849 | 6,649 |
Accrued expenses and other current liabilities | 3,241 | 1,965 |
Net cash provided by operating activities | 74,435 | 34,129 |
Cash flows from investing activities | ||
Decrease in funds held for clients | 103,662 | 44,662 |
Decrease in restricted cash | 371 | |
Purchases of property and equipment | (32,130) | (10,150) |
Net cash provided by investing activities | 71,532 | 34,883 |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt | 5,000 | |
Repurchases of common stock | (8,379) | |
Withholding taxes paid related to net share settlements | (14,396) | |
Principal payments on long-term debt | (702) | (897) |
Decrease in client funds obligation | (103,662) | (44,662) |
Payment of debt issuance costs | (46) | (50) |
Net cash used in financing activities | (122,185) | (45,609) |
Change in cash and cash equivalents | 23,782 | 23,403 |
Cash and cash equivalents | ||
Beginning of period | 50,714 | 25,144 |
End of period | $ 74,496 | $ 48,547 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Description of Business Paycom Software, Inc. (“Software”) and its wholly owned subsidiaries (collectively, the “Company”) is a leading provider of comprehensive, cloud-based human capital management (“HCM”) software delivered as Software-as-a-Service. Unless we state otherwise or the context otherwise requires, the terms “we”, “our”, “us” and the “Company” refer to Software and its consolidated subsidiaries. We provide functionality and data analytics that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Our solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including talent acquisition, time and labor management, payroll, talent management and human resources (“HR”) management applications. Registered Block Trade Transactions On September 15, 2015, we closed an underwritten secondary offering of 4,500,000 shares of our common stock by Welsh, Carson, Anderson & Stowe X, L.P. (“WCAS X”), WCAS Capital Partners IV L.P. (“WCAS Capital IV”), each of our executive officers and certain other selling stockholders at a public offering price of $37.95 per share. On September 23, 2015, the underwriter exercised its option to purchase an additional 675,000 shares from WCAS X and WCAS Capital IV. We did not receive any proceeds from the sale of these shares. On May 20, 2015, we closed an underwritten secondary offering of 8,000,000 shares of our common stock by WCAS X, WCAS Capital IV, each of our executive officers and certain other selling stockholders at a public offering price of $36.25 per share. We did not receive any proceeds from the sale of these shares. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our significant accounting policies are discussed in “Note 2. Summary of Significant Accounting Policies” in our audited consolidated financial statements for the year ended December 31, 2015, included in the Annual Report on Form 10-K that was filed with the Securities and Exchange Commission (“SEC”) on February 22, 2016. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial statements that permit reduced disclosure for interim periods. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary to fairly present our consolidated balance sheets as of September 30, 2016 and December 31, 2015, our consolidated statements of income for the three and nine months ended September 30, 2016 and 2015 and our consolidated statements of cash flows for the nine months ended September 30, 2016 and 2015. Such adjustments are of a normal recurring nature. The information in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K that was filed with the SEC on February 22, 2016. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results expected for the full year. Adoption of New Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-09 (“ASU 2016-09”), which simplified the accounting related to certain aspects of share-based payments to employees. The new guidance requires excess tax benefits and tax deficiencies to be recognized within the income statement when restricted stock awards vest or are settled. In addition, cash flows related to excess tax benefits are not separately classified as a financing activity apart from other income tax cash flows in the statement of cash flows. This guidance allows us to repurchase more of an employee’s vesting shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made to taxing authorities on an employee’s behalf for withheld shares be presented as a financing activity in the statement of cash flows, and provides an accounting policy election to account for award forfeitures as they occur or continue to estimate forfeitures. The new guidance is effective for us beginning January 1, 2017, with early adoption permitted. We elected to early adopt the new guidance in the third quarter of 2016. As such, we are required to present any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption, although there were no such adjustments necessary in our consolidated financial statements until the three months ended September 30, 2016. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes of $6.8 million for both the three and nine months ended September 30, 2016, which otherwise would have been recognized as paid-in capital. Early adoption had no impact on retained earnings as of January 1, 2016. We elected to continue to estimate expected forfeitures to determine the amount of stock compensation cost to be recognized in each period. The presentation requirements for cash flows related to excess benefits and for cash flows related to employee taxes paid for withheld shares had no impact on any of the periods previously presented in our consolidated statements of cash flows. We adopted on a retrospective basis the recently issued guidance by the FASB Accounting Standards Update No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires companies with debt issuance costs related to a recognized debt liability to present such issuance costs in the consolidated balance sheets as a direct deduction from the carrying amount of the debt liability. Our adoption of ASU 2015-03 resulted in a reclassification that decreased deposits and other assets by $0.1 million and decreased net long-term debt, less current portion by $0.1 million on our consolidated balance sheet as of December 31, 2015. The adoption of ASU 2015-03 had no impact on our stockholders’ equity or the results of our operations. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates include income taxes, contingencies, the useful life of property and equipment and intangible assets, the life of our client relationships, the fair value of our stock-based awards and the fair value of our financial instruments, intangible assets and goodwill. These estimates are based on historical experience where applicable and other assumptions that management believes are reasonable under the circumstances. As such, actual results could materially differ from these estimates. Employee Stock Purchase Plan An award issued under the Paycom Software, Inc. Employee Stock Purchase Plan (the “ESPP”) is classified as a share-based liability and recorded at the fair value of the award. Expense is recognized, net of estimated forfeitures, on a straight-line basis over the requisite service period. Funds Held for Clients and Client Funds Obligation As part of our payroll and tax filing application, we (i) collect client funds to satisfy their respective federal, state and local employment tax obligations, (ii) remit such funds to the appropriate taxing authorities and accounts designated by our clients, and (iii) manage client tax filings and any related correspondence with taxing authorities. Amounts collected by us from clients for their federal, state and local employment taxes earn interest during the interval between receipt and disbursement, as we invest these funds in demand deposits, money market funds, certificates of deposit and commercial paper. These investments are shown in the consolidated balance sheets as funds held for clients, and the offsetting liability for the tax filings is shown as client funds obligation. The liability is recorded in the accompanying balance sheets at the time we obtain the funds from clients. The client funds obligation represents liabilities that will be repaid within one year of the balance sheet date. As of April 1, 2016, the interest income earned on funds held for clients is recorded in recurring revenues. Prior to April 1, 2016, the interest income earned on these funds was recorded in other income, net in the consolidated income statements. As of September 30, 2016, the funds held for clients were invested in demand deposits, certificates of deposit, money market funds and commercial paper and classified as a current asset in the accompanying balance sheets as these funds are held solely to satisfy the client funds obligation. As of December 31, 2015, the funds held for clients funds were invested in the same investments, other than commercial paper. Stock Repurchase Plan On May 26, 2016, we announced that our Board of Directors approved a stock repurchase plan under which we are authorized to purchase (in the aggregate) up to $50.0 million of our issued and outstanding common stock, par value $0.01 per share, over a 24-month period. Shares may be repurchased from time-to-time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b5-1 programs, and the repurchase plan may be suspended or discontinued at any time. The actual timing, number and value of shares repurchased depends on a number of factors, including the market price of our common stock, general market and economic conditions and other corporate considerations. During the nine months ended September 30, 2016, we repurchased an aggregate of 487,755 shares of our common stock under our repurchase plan at an average cost of $46.69 per share, including 302,424 shares withheld to satisfy tax withholding obligations for certain employees upon the vesting of restricted common stock. Recently Issued Accounting Pronouncements In May 2014, the FASB issued authoritative guidance which included a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services and has since issued additional amendments to this guidance. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. In April 2015, the FASB proposed a one year deferral of the effective date of the new revenue recognition standard for public and non-public entities reporting under U.S. GAAP and on July 9, 2015, the FASB approved the one year deferral. The effective date of the amended standard will begin in periods beginning after December 15, 2017. We are currently evaluating the impact that the standard will have on our consolidated financial statements. In July 2015, the FASB issued authoritative guidance which simplifies the measurement of inventory. Under the new guidance, an entity should measure inventory (as defined within the scope of the guidance) at the lower of cost or net realizable value. The new guidance applies to all inventory except inventory measured using last-in, first-out (LIFO) or the retail inventory method. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predicable costs of completion, disposal and transportation. The new guidance is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Accordingly, the standard is effective for us on January 1, 2017. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. In January 2016, the FASB issued authoritative guidance for the accounting for financial instruments. The amendments in this guidance require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this guidance also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this guidance eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The new guidance is effective for us for fiscal years, and interim periods within those years, beginning after December 15, 2017 and early adoption is permitted. We are currently evaluating the impact that the standard will have on our consolidated financial statements. In February 2016, the FASB issued authoritative guidance for the accounting for leases. The purpose of the update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet as well as providing additional disclosure requirements related to leasing arrangements. The new guidance is effective for us for fiscal years, and interim periods within those years, beginning after December 15, 2018, though early adoption is permitted. We are currently evaluating the impact that the standard will have on our consolidated financial statements. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 3. PROPERTY AND EQUIPMENT, NET Property and equipment and associated accumulated depreciation and amortization were as follows: September 30, December 31, 2016 2015 Property and equipment Buildings $ 47,855 $ 28,154 Software and capitalized software costs 21,281 13,959 Computer equipment 17,071 11,346 Rental clocks 10,069 8,750 Furniture, fixtures and equipment 6,364 5,464 Vehicles 421 421 Leasehold improvements 680 358 103,741 68,452 Less: accumulated depreciation and amortization (33,088 ) (24,894 ) 70,653 43,558 Land 8,993 8,993 Construction in progress 7,639 6,307 Property and equipment, net $ 87,285 $ 58,858 Included in the construction in progress balance at September 30, 2016 and December 31, 2015 is $0.6 million and $0.4 million in retainage, respectively. Depreciation and amortization expense for property and equipment, net, was $3.2 million and $8.5 million for the three and nine months ended September 30, 2016, respectively. Depreciation and amortization expense for property and equipment, net was $2.0 million and $5.6 million for the three and nine months ended September 30, 2015, respectively. We capitalize interest incurred for indebtedness related to construction of our principal executive offices. For the three and nine months ended September 30, 2016, we incurred interest costs of $0.3 million and $1.0 million, respectively. We capitalized interest costs for the three and nine months ended September 30, 2016 of $0.1 million and $0.3 million, respectively. For the three and nine months ended September 30, 2015, we incurred interest costs of $0.3 million and $0.9 million, respectively, none of which was capitalized. We capitalize computer software development costs related to software developed for internal use in accordance with Accounting Standards Codification (“ASC”) Topic 350-40. During the three and nine months ended September 30, 2016, we capitalized $2.9 million and $6.6 million of computer software development costs related to software developed for internal use, respectively. During the three and nine months ended September 30, 2015, we capitalized $1.1 million and $2.7 million of computer software development costs related to software developed for internal use, respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 4. GOODWILL AND INTANGIBLE ASSETS, NET Goodwill represents the excess of cost over our net tangible and identified intangible assets. We had goodwill of $51.9 million as of September 30, 2016 and December 31, 2015 and determined there were no indicators of impairment at either date. We have selected June 30 as our annual goodwill impairment testing date and determined there was no impairment as of June 30, 2016. All of our intangible assets are considered to have finite lives and, as such, are subject to amortization. The components of intangible assets were as follows: September 30, 2016 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Customer relationships 0.7 $ 13,997 $ (12,947 ) $ 1,050 Trade name 5.8 3,194 (1,970 ) 1,224 Total $ 17,191 $ (14,917 ) $ 2,274 December 31, 2015 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Customer relationships 1.5 $ 13,997 $ (11,897 ) $ 2,100 Trade name 6.5 3,194 (1,810 ) 1,384 Total $ 17,191 $ (13,707 ) $ 3,484 The weighted average remaining useful life of our intangible assets was 3.4 years as of September 30, 2016. Amortization of intangible assets for both the three months ended September 30, 2016 and 2015 was $0.4 million. Amortization of intangible assets for both the nine months ended September 30, 2016 and 2015 was $1.2 million. |
Long-Term Debt, Net
Long-Term Debt, Net | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net | 5. LONG-TERM DEBT, NET As of the dates indicated, our long-term debt consisted of the following: September 30, 2016 December 31, 2015 Net term note to bank due May 30, 2021 $ 25,162 $ 25,742 Net term note to bank due December 31, 2022 $ 4,928 - Total long-term debt (including current portion) 30,090 25,742 Less: Current portion (1,090 ) (886 ) Total long-term debt, net $ 29,000 $ 24,856 As of September 30, 2016, our outstanding indebtedness consisted of (i) a term note under the 2021 Consolidated Loan due to Kirkpatrick Bank (the “2021 Consolidated Loan”), (ii) a 78-month term loan from Kirkpatrick Bank (the “2022 Term Loan”), which we obtained by converting the $5.0 million outstanding principal balance of a construction loan that was used to partially finance the construction of our third headquarters building (the “2015 Construction Loan”), and (iii) a new construction loan from Kirkpatrick Bank, which is available to finance the ongoing construction of a fourth headquarters building and new parking garage (the “2016 Construction Loan”). The 2021 Consolidated Loan matures on May 30, 2021. Under the 2021 Consolidated Loan, interest is payable monthly and accrues at a fixed rate of 4.75% per annum. The 2021 Consolidated Loan is secured by a mortgage covering our headquarters and certain personal property relating to our headquarters. The 2021 Consolidated Loan includes certain financial covenants, including maintaining a fixed charge coverage ratio of EBITDA to fixed charges (defined as current maturities of long-term debt, interest expense, rent expense and distributions) of greater than 1.2 to 1.0, which is measured on a quarterly basis. We were in compliance with all of these covenants as of September 30, 2016. We entered into the 2015 Construction Loan with Kirkpatrick Bank on May 3, 2015 and converted the outstanding principal balance into the 2022 Term Loan on August 1, 2016. The 2015 Construction Loan allowed us to borrow a maximum aggregate principal amount equal to the lesser of (i) $11.0 million or (ii) 80% of the appraised value of the constructed property. The 2022 Term Loan matures on December 31, 2022 and is secured by a mortgage covering our headquarters and certain personal property relating to our headquarters. Interest on the 2022 Term Loan is payable monthly and accrues at a fixed rate of 3.4% per annum. The 2022 Term Loan includes the same covenants as those disclosed above with respect to the 2021 Consolidated Loan. We were in compliance with all of these covenants as of September 30, 2016. We entered into the 2016 Construction Loan with Kirkpatrick Bank on August 2, 2016. As of September 30, 2016, there were no outstanding borrowings under the 2016 Construction Loan. The 2016 Construction Loan allows us to borrow a maximum aggregate principal amount equal to the lesser of (i) $28.6 million or (ii) 80% of the appraised value of the constructed properties. The 2016 Construction Loan matures on the earlier of the completion of construction or February 2, 2019, with interest accruing at the greater of (i) the prime rate, plus 50 basis points or (ii) 4.0%. At maturity, the outstanding principal balance of the 2016 Construction Loan, if any, will be automatically converted into an 84-month term loan that will accrue fixed interest at the prevailing 7/20 London Interbank Offered Rate swap interest rate in effect as of the commencement date, plus 225 basis points. As of September 30, 2016 and December 31, 2015, the carrying value of our total long-term debt, including current portion, was $30.1 million and $25.7 million, respectively, which approximated its fair value as of both dates. The fair value of our long-term debt is estimated based on the borrowing rates currently available to us for bank loans with similar terms and maturities. |
Employee Savings Plan
Employee Savings Plan | 9 Months Ended |
Sep. 30, 2016 | |
Compensation Related Costs [Abstract] | |
Employee Savings Plan and Employee Stock Purchase Plan | 6. EMPLOYEE SAVINGS PLAN AND EMPLOYEE STOCK PURCHASE PLAN Our employees that are over the age of 21 and have completed ninety (90) days of service are eligible to participate in our 401(k) plan. We have made a Qualified Automatic Contribution Arrangement (“QACA”) election, whereby we make a matching contribution for our employees equal to 100% of the first 1% of salary deferrals and 50% of salary deferrals between 2% and 6%, up to a maximum matching contribution of 3.5% of an employee’s salary each plan year. We are allowed to make additional discretionary matching contributions and discretionary profit sharing contributions. Employees are 100% vested in amounts attributable to salary deferrals and rollover contributions. The QACA matching contributions as well as the discretionary matching and profit sharing contributions vest 100% after two years of employment from the date of hire. Matching contributions amounted to $0.9 million and $2.5 million for the three and nine months ended September 30, 2016, respectively. Matching contributions amounted to $0.6 million and $1.8 million for the three and nine months ended September 30, 2015, respectively. The ESPP has overlapping offering periods, with each offering period lasting approximately 24 months. At the beginning of each offering period, eligible employees may elect to contribute, through payroll deductions, up to 10% of their compensation, subject to an annual per employee maximum. Eligible employees purchase shares of the Company’s common stock at a price equal to 85% of the fair market value of the shares on the exercise date. The maximum number of shares that may be purchased by a participant during each offering period is 2,000 shares, subject to IRS limits. The shares reserved for purposes of the ESPP are shares we purchase in the open market. The maximum aggregate number of shares of the Company’s common stock that may be purchased by all participants under the ESPP is 2,000,000 shares. During the nine months ended September 30, 2016, eligible employees purchased 90,571 shares of the Company’s common stock under the ESPP. Compensation expense related to the ESPP is recognized on a straight-line basis over the requisite service period. Our compensation expense related to the ESPP was $0.1 million and $0.4 million for the three and nine months ended September 30, 2016. Our compensation expense related to the ESPP was $0.1 million and $0.2 million for the three and nine months ended September 30, 2015. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 7. FAIR VALUE OF FINANCIAL INSTRUMENTS Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, funds held for clients, client funds obligation and long-term debt. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable, funds held for clients and client funds obligation approximates fair value because of the short-term nature of the instruments. We did not have any financial instruments that were measured on a recurring basis at either September 30, 2016 or December 31, 2015. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 8. EARNINGS PER SHARE Basic earnings per share is based on the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share is computed in a similar manner to basic earnings per share after assuming the issuance of shares of common stock for all potentially dilutive shares of restricted stock whether or not they are vested. In accordance with ASC Topic 260 “Earnings Per Share”, the two-class method determines earnings for each class of common stock and participating securities according to an earnings allocation formula that adjusts the income available to common stockholders for dividends or dividend equivalents and participation rights in undistributed earnings. Certain unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. The outstanding shares of 2015 Restricted Stock (as defined in Note 9) are considered participating securities, while the outstanding shares of 2016 Restricted Stock (as defined in Note 9) are not considered participating securities. The following is a reconciliation of net income and the number of shares of common stock used in the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Numerator: Net income $ 6,198 $ 3,847 $ 35,207 $ 15,788 Less: income allocable to participating securities (47 ) (49 ) (271 ) (205 ) Income allocable to common shares $ 6,151 $ 3,798 $ 34,936 $ 15,583 Add back: undistributed earnings allocable to participating securities $ 47 $ 49 $ 271 $ 206 Less: undistributed earnings reallocated to participating securities (47 ) (49 ) (271 ) (200 ) Numerator for diluted earnings per share $ 6,151 $ 3,798 $ 34,936 $ 15,589 Denominator: Weighted average common shares outstanding 50,315,455 50,315,455 50,315,455 50,315,455 Weighted average common shares repurchased (329,586 ) - (117,296 ) - Adjustment for vested restricted stock 7,833,865 6,735,229 7,317,687 5,972,524 Shares for calculating basic earnings per share 57,819,734 57,050,684 57,515,846 56,287,979 Dilutive effect of unvested restricted stock 1,087,547 1,317,146 1,277,633 1,483,701 Shares for calculating diluted earnings per share 58,907,281 58,367,830 58,793,479 57,771,680 Earnings per share: Basic $ 0.11 $ 0.07 $ 0.61 $ 0.28 Diluted $ 0.10 $ 0.07 $ 0.59 $ 0.27 |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | 9. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION On January 1, 2014, we issued restricted shares of common stock (“2014 Restricted Stock”) under the Paycom Software, Inc. 2014 Long-Term Incentive Plan (the “LTIP”) that were subject to either time-based vesting conditions or market-based vesting conditions. Shares of 2014 Restricted Stock with time-based vesting conditions vest based on various schedules through 2018. The market-based vesting conditions were based on our total enterprise value exceeding certain specified thresholds. Compensation expense related to the issuance of 2014 Restricted Stock with time-based vesting conditions was measured based on the fair value of the award on the grant date and is recognized over the requisite service period on a straight-line basis. Compensation expense relating to the issuance of 2014 Restricted Stock with market-based vesting conditions was measured based on the fair value of the award on the grant date and recognized on a straight-line basis over the vesting period based on the probability that the vesting conditions would be met. For 2014 Restricted Stock with market-based vesting conditions, 50% of the shares vested upon reaching a total enterprise value of $1.4 billion on December 1, 2014 and the remaining 50% of the shares vested upon reaching a total enterprise value of $1.8 billion on March 2, 2015. Our total compensation expense related to 2014 Restricted Stock was less than $0.1 million and $0.1 million for the three and nine months ended September 30, 2016, respectively. Our total compensation expense related to 2014 Restricted Stock was $0.3 million for both the three and nine months ended September 30, 2015. There was $0.2 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested shares of 2014 Restricted Stock with time-based vesting conditions outstanding as of September 30, 2016. The unrecognized compensation cost is expected to be recognized over a weighted average period of 1.3 years as of September 30, 2016. On July 8, 2015, we issued an aggregate of 741,931 restricted shares of common stock under the LTIP (“2015 Restricted Stock”) to each of our executive officers and certain non-executive employees. On April 15, 2016, we issued an aggregate of 847,928 restricted shares of common stock under the LTIP to each of our executive officers and certain non-executive employees, and on May 2, 2016, we issued an aggregate of 5,132 restricted shares of common stock under the LTIP to certain members of our Board of Directors (“2016 Restricted Stock” and, collectively with all shares of 2015 Restricted Stock, the “Post-IPO Restricted Stock”). Certain shares of Post-IPO Restricted Stock are subject to market-based vesting conditions and certain shares of Post-IPO Restricted Stock are subject to time-based vesting conditions. Shares of Post-IPO Restricted Stock subject to time-based vesting conditions will vest over periods of three or five years. Shares subject to market-based vesting conditions have vested when, or will vest if, the Company’s Total Enterprise Value (as defined in the applicable restricted stock award agreement) equals or exceeds certain predetermined thresholds. All shares of 2016 Restricted Stock with market-based vesting conditions vested on July 28, 2016, when the Company’s Total Enterprise Value reached $2.65 billion. With respect to shares of 2015 Restricted Stock with market-based vesting conditions, 50% of the shares vested on August 1, 2016, when the Company’s Total Enterprise Value reached $2.65 billion, and the remaining 50% of the shares will vest if the Company’s Total Enterprise Value equals or exceeds $3.5 billion. There was a two-trading-day gap between the vesting of 2016 Restricted Stock and 2015 Restricted Stock when the Company’s Total Enterprise Value reached $2.65 billion due to differences in the number of shares outstanding at the respective grant dates, which affected the Total Enterprise Value calculations. Shares of 2016 Restricted Stock subject to market-based vesting conditions would have been forfeited if they did not vest within six years of the date of grant while shares of 2015 Restricted Stock subject to market-based vesting conditions are eligible for vesting indefinitely. Compensation expense for the shares of Post-IPO Restricted Stock with time-based vesting conditions was measured based on the fair value of the underlying shares on the grant date (which was equal to the closing price of our common stock on such grant date) and will be recognized over the requisite service periods on a straight-line basis. Compensation expense for shares of Post-IPO Restricted Stock with market-based vesting conditions was measured based on the fair value of the underlying shares on the grant date, which ranged from $21.76 to $27.40. The fair value of each share of Post-IPO Restricted Stock with market-based vesting conditions was estimated on the grant date using a Monte Carlo simulation model. This model considers a range of assumptions related to volatility, risk-free interest rate, expected life and expected dividend yield. Expected volatilities used in the model are based on historical volatilities of comparable guideline companies until a sufficient trading history in our common stock exists. We are required to estimate forfeitures and only record compensation costs for those awards that are expected to vest. The Company recognized $9.9 million of compensation cost in connection with the vesting of 490,700 shares of 2016 Restricted Stock on July 28, 2016 and $3.8 million of compensation cost in connection with the vesting of 234,350 shares of 2015 Restricted Stock on August 1, 2016. To satisfy tax withholding obligations with respect to the delivery of vested shares to certain employees, the Company withheld 199,128 shares of 2016 Restricted Stock that vested on July 28, 2016 and 90,703 shares of 2015 Restricted Stock that vested on August 1, 2016 as well as 12,593 of the 37,047 shares of 2015 Restricted Stock with time-based vesting conditions that vested on July 8, 2016. All shares withheld to satisfy tax withholding obligations are held as treasury stock. The remaining compensation expense for the unvested shares of Post-IPO Restricted Stock with market-based vesting conditions will be recognized on a straight-line basis over the requisite service period of 4.2 years. Our total compensation expense related to Post-IPO Restricted Stock was $14.2 million and $18.7 million for the three and nine months ended September 30, 2016, respectively. There was $18.2 million of unrecognized compensation cost, net of estimated forfeitures, related to unvested shares of Post-IPO Restricted Stock outstanding as of September 30, 2016. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.2 years as of September 30, 2016. We capitalized stock-based compensation costs related to software developed for internal use of $1.1 million and $1.4 million for the three and nine months ended September 30, 2016, respectively. We capitalized stock-based compensation costs related to software developed for internal use of less than $0.1 million for both the three and nine months ended September 30, 2015. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 10. RELATED-PARTY TRANSACTIONS For each of the three- and nine-month periods ended September 30, 2016 and 2015, we paid rent on our Dallas office space in the amounts of $0.1 million and $0.3 million, respectively. The Dallas office building is owned by 417 Oakbend, LP, a Texas limited partnership. Our Chief Sales Officer owns a .01% general partnership interest and a 10.49% limited partnership interest in 417 Oakbend, LP. In accordance with the terms of the Registration Rights Agreement dated as of December 30, 2013, we paid registration and related expenses incurred by certain parties and others in the aggregate amount of $0.7 and $0.5 million in connection with the registration of shares of common stock in underwritten secondary offerings in September 2015 and May 2015, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. COMMITMENTS AND CONTINGENCIES Employment Agreements We have employment agreements with certain of our executive officers. The agreements allow for annual compensation, participation in executive benefit plans, and performance-based cash bonuses. Legal Proceedings We are involved in various legal proceedings in the ordinary course of business. Although we cannot predict the outcome of these proceedings, legal matters are subject to inherent uncertainties and there exists the possibility that the ultimate resolution of these matters could have a material adverse effect on our business, financial condition, results of operations and cash flows. Operating Leases and Deferred Rent We lease office space under several noncancellable operating leases with contractual terms expiring from 2017 to 2023. Minimum rent expenses are recognized over the lease term. The lease term is defined as the fixed noncancellable term of the lease plus all periods, if any, for which failure to renew the lease imposes a penalty on us in an amount that a renewal appears, at the inception of the lease, to be reasonably assured. When a lease contains a predetermined fixed escalation of the minimum rent, we recognize the related rent expense on a straight-line basis and record the difference between the recognized rent expense and the amount payable under the lease as a liability. As of September 30, 2016 and December 31, 2015, we had $1.1 million and $0.8 million, respectively, recorded as a liability for deferred rent. Rent expense under operating leases for the three and nine months ended September 30, 2016 was $1.5 million and $4.2 million, respectively. Rent expense under operating leases for the three and nine months ended September 30, 2015 was $1.1 million and $3.3 million, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. INCOME TAXES The provision for income taxes is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items. Significant management judgment is required in estimating operating income in order to determine our effective income tax rate. We recognized an income tax benefit of $6.1 million for the three months ended September 30, 2016, as compared to a $2.8 million income tax expense for the three months ended September 30, 2015. Income tax expense decreased to $9.3 million for the nine months ended September 30, 2016 from $11.5 million for the nine months ended September 30, 2015. Our effective income tax rate was 20.87% and 42.13% for the nine months ended September 30, 2016 and 2015, respectively. The lower effective income tax rate for the nine months ended September 30, 2016 and the income tax benefit for the three months ended September 30, 2016 are primarily a result of the recognition of excess tax benefits from share-based payment awards resulting from the Company’s adoption of ASU 2016-09. We recognized a discrete adjustment to income tax expense for the three and nine months ended September 30, 2016, in the amount of $6.8 million related to excess tax benefits. See Note 2 under Adoption of New Pronouncements |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. SUBSEQUENT EVENTS On October 4, 2016, we issued an aggregate of 721,100 restricted shares of common stock to our executive officers and certain non-executive, non-sales employees under the LTIP, consisting of 510,550 shares subject to market-based vesting conditions (“Market-Based Shares”) and 210,550 shares subject to time-based vesting conditions (“Time-Based Shares”). Market-Based Shares will vest 50% on the first date that the Company’s Total Enterprise Value (calculated as defined in the applicable restricted stock award agreement) equals or exceeds $3.9 billion and 50% on the first date that the Company’s Total Enterprise Value equals or exceeds $4.2 billion, in each case provided that (i) such date occurs on or before the sixth anniversary of the grant date and (ii) the recipient is employed by, or providing services to, the Company or a subsidiary on the applicable vesting date. Time-Based Shares will vest 20% on a specified initial vesting date and 20% on each of the first four anniversaries of such initial vesting date, provided that the recipient is employed by, or providing services to, the Company or a subsidiary on the applicable vesting date. The total compensation cost with respect to this issuance is expected to be approximately $24.5 million. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial statements that permit reduced disclosure for interim periods. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary to fairly present our consolidated balance sheets as of September 30, 2016 and December 31, 2015, our consolidated statements of income for the three and nine months ended September 30, 2016 and 2015 and our consolidated statements of cash flows for the nine months ended September 30, 2016 and 2015. Such adjustments are of a normal recurring nature. The information in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K that was filed with the SEC on February 22, 2016. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results expected for the full year. |
Adoption of New Pronouncements | Adoption of New Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-09 (“ASU 2016-09”), which simplified the accounting related to certain aspects of share-based payments to employees. The new guidance requires excess tax benefits and tax deficiencies to be recognized within the income statement when restricted stock awards vest or are settled. In addition, cash flows related to excess tax benefits are not separately classified as a financing activity apart from other income tax cash flows in the statement of cash flows. This guidance allows us to repurchase more of an employee’s vesting shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made to taxing authorities on an employee’s behalf for withheld shares be presented as a financing activity in the statement of cash flows, and provides an accounting policy election to account for award forfeitures as they occur or continue to estimate forfeitures. The new guidance is effective for us beginning January 1, 2017, with early adoption permitted. We elected to early adopt the new guidance in the third quarter of 2016. As such, we are required to present any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption, although there were no such adjustments necessary in our consolidated financial statements until the three months ended September 30, 2016. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes of $6.8 million for both the three and nine months ended September 30, 2016, which otherwise would have been recognized as paid-in capital. Early adoption had no impact on retained earnings as of January 1, 2016. We elected to continue to estimate expected forfeitures to determine the amount of stock compensation cost to be recognized in each period. The presentation requirements for cash flows related to excess benefits and for cash flows related to employee taxes paid for withheld shares had no impact on any of the periods previously presented in our consolidated statements of cash flows. We adopted on a retrospective basis the recently issued guidance by the FASB Accounting Standards Update No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires companies with debt issuance costs related to a recognized debt liability to present such issuance costs in the consolidated balance sheets as a direct deduction from the carrying amount of the debt liability. Our adoption of ASU 2015-03 resulted in a reclassification that decreased deposits and other assets by $0.1 million and decreased net long-term debt, less current portion by $0.1 million on our consolidated balance sheet as of December 31, 2015. The adoption of ASU 2015-03 had no impact on our stockholders’ equity or the results of our operations. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates include income taxes, contingencies, the useful life of property and equipment and intangible assets, the life of our client relationships, the fair value of our stock-based awards and the fair value of our financial instruments, intangible assets and goodwill. These estimates are based on historical experience where applicable and other assumptions that management believes are reasonable under the circumstances. As such, actual results could materially differ from these estimates. |
Employee Stock Purchase Plan | Employee Stock Purchase Plan An award issued under the Paycom Software, Inc. Employee Stock Purchase Plan (the “ESPP”) is classified as a share-based liability and recorded at the fair value of the award. Expense is recognized, net of estimated forfeitures, on a straight-line basis over the requisite service period. |
Funds Held for Clients and Client Funds Obligation | Funds Held for Clients and Client Funds Obligation As part of our payroll and tax filing application, we (i) collect client funds to satisfy their respective federal, state and local employment tax obligations, (ii) remit such funds to the appropriate taxing authorities and accounts designated by our clients, and (iii) manage client tax filings and any related correspondence with taxing authorities. Amounts collected by us from clients for their federal, state and local employment taxes earn interest during the interval between receipt and disbursement, as we invest these funds in demand deposits, money market funds, certificates of deposit and commercial paper. These investments are shown in the consolidated balance sheets as funds held for clients, and the offsetting liability for the tax filings is shown as client funds obligation. The liability is recorded in the accompanying balance sheets at the time we obtain the funds from clients. The client funds obligation represents liabilities that will be repaid within one year of the balance sheet date. As of April 1, 2016, the interest income earned on funds held for clients is recorded in recurring revenues. Prior to April 1, 2016, the interest income earned on these funds was recorded in other income, net in the consolidated income statements. As of September 30, 2016, the funds held for clients were invested in demand deposits, certificates of deposit, money market funds and commercial paper and classified as a current asset in the accompanying balance sheets as these funds are held solely to satisfy the client funds obligation. As of December 31, 2015, the funds held for clients funds were invested in the same investments, other than commercial paper. |
Stock Repurchase Plan | Stock Repurchase Plan On May 26, 2016, we announced that our Board of Directors approved a stock repurchase plan under which we are authorized to purchase (in the aggregate) up to $50.0 million of our issued and outstanding common stock, par value $0.01 per share, over a 24-month period. Shares may be repurchased from time-to-time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b5-1 programs, and the repurchase plan may be suspended or discontinued at any time. The actual timing, number and value of shares repurchased depends on a number of factors, including the market price of our common stock, general market and economic conditions and other corporate considerations. During the nine months ended September 30, 2016, we repurchased an aggregate of 487,755 shares of our common stock under our repurchase plan at an average cost of $46.69 per share, including 302,424 shares withheld to satisfy tax withholding obligations for certain employees upon the vesting of restricted common stock. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued authoritative guidance which included a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services and has since issued additional amendments to this guidance. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. In April 2015, the FASB proposed a one year deferral of the effective date of the new revenue recognition standard for public and non-public entities reporting under U.S. GAAP and on July 9, 2015, the FASB approved the one year deferral. The effective date of the amended standard will begin in periods beginning after December 15, 2017. We are currently evaluating the impact that the standard will have on our consolidated financial statements. In July 2015, the FASB issued authoritative guidance which simplifies the measurement of inventory. Under the new guidance, an entity should measure inventory (as defined within the scope of the guidance) at the lower of cost or net realizable value. The new guidance applies to all inventory except inventory measured using last-in, first-out (LIFO) or the retail inventory method. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predicable costs of completion, disposal and transportation. The new guidance is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Accordingly, the standard is effective for us on January 1, 2017. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. In January 2016, the FASB issued authoritative guidance for the accounting for financial instruments. The amendments in this guidance require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this guidance also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this guidance eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The new guidance is effective for us for fiscal years, and interim periods within those years, beginning after December 15, 2017 and early adoption is permitted. We are currently evaluating the impact that the standard will have on our consolidated financial statements. In February 2016, the FASB issued authoritative guidance for the accounting for leases. The purpose of the update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet as well as providing additional disclosure requirements related to leasing arrangements. The new guidance is effective for us for fiscal years, and interim periods within those years, beginning after December 15, 2018, though early adoption is permitted. We are currently evaluating the impact that the standard will have on our consolidated financial statements. |
Property and Equipment , Net (T
Property and Equipment , Net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment and Associated Accumulated Depreciation and Amortization | Property and equipment and associated accumulated depreciation and amortization were as follows: September 30, December 31, 2016 2015 Property and equipment Buildings $ 47,855 $ 28,154 Software and capitalized software costs 21,281 13,959 Computer equipment 17,071 11,346 Rental clocks 10,069 8,750 Furniture, fixtures and equipment 6,364 5,464 Vehicles 421 421 Leasehold improvements 680 358 103,741 68,452 Less: accumulated depreciation and amortization (33,088 ) (24,894 ) 70,653 43,558 Land 8,993 8,993 Construction in progress 7,639 6,307 Property and equipment, net $ 87,285 $ 58,858 |
Goodwill and Intangible Asset21
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | All of our intangible assets are considered to have finite lives and, as such, are subject to amortization. The components of intangible assets were as follows: September 30, 2016 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Customer relationships 0.7 $ 13,997 $ (12,947 ) $ 1,050 Trade name 5.8 3,194 (1,970 ) 1,224 Total $ 17,191 $ (14,917 ) $ 2,274 December 31, 2015 Weighted Average Remaining Accumulated Useful Life Gross Amortization Net (Years) Intangibles: Customer relationships 1.5 $ 13,997 $ (11,897 ) $ 2,100 Trade name 6.5 3,194 (1,810 ) 1,384 Total $ 17,191 $ (13,707 ) $ 3,484 |
Long-Term Debt, Net (Tables)
Long-Term Debt, Net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | As of the dates indicated, our long-term debt consisted of the following: September 30, 2016 December 31, 2015 Net term note to bank due May 30, 2021 $ 25,162 $ 25,742 Net term note to bank due December 31, 2022 $ 4,928 - Total long-term debt (including current portion) 30,090 25,742 Less: Current portion (1,090 ) (886 ) Total long-term debt, net $ 29,000 $ 24,856 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following is a reconciliation of net income and the number of shares of common stock used in the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Numerator: Net income $ 6,198 $ 3,847 $ 35,207 $ 15,788 Less: income allocable to participating securities (47 ) (49 ) (271 ) (205 ) Income allocable to common shares $ 6,151 $ 3,798 $ 34,936 $ 15,583 Add back: undistributed earnings allocable to participating securities $ 47 $ 49 $ 271 $ 206 Less: undistributed earnings reallocated to participating securities (47 ) (49 ) (271 ) (200 ) Numerator for diluted earnings per share $ 6,151 $ 3,798 $ 34,936 $ 15,589 Denominator: Weighted average common shares outstanding 50,315,455 50,315,455 50,315,455 50,315,455 Weighted average common shares repurchased (329,586 ) - (117,296 ) - Adjustment for vested restricted stock 7,833,865 6,735,229 7,317,687 5,972,524 Shares for calculating basic earnings per share 57,819,734 57,050,684 57,515,846 56,287,979 Dilutive effect of unvested restricted stock 1,087,547 1,317,146 1,277,633 1,483,701 Shares for calculating diluted earnings per share 58,907,281 58,367,830 58,793,479 57,771,680 Earnings per share: Basic $ 0.11 $ 0.07 $ 0.61 $ 0.28 Diluted $ 0.10 $ 0.07 $ 0.59 $ 0.27 |
Organization and Description 24
Organization and Description of Business - Additional Information (Detail) - Secondary Offering [Member] - USD ($) | Sep. 23, 2015 | Sep. 15, 2015 | May 20, 2015 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Common stock issued, shares | 4,500,000 | 8,000,000 | |
Offering price per share | $ 37.95 | $ 36.25 | |
Proceeds from sale of common stock under public offering | $ 0 | $ 0 | |
Additional purchase of common shares | 675,000 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | May 26, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Summary Of Significant Accounting Policy [Line Items] | ||||
Excess tax benefits related to share-based payments in provision for income taxes | $ 6,800,000 | $ 6,800,000 | ||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |
Stock Repurchase Plan [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Common stock, par value | $ 0.01 | |||
Stock repurchase plan period | 24 months | |||
Number of common stocks repurchased during the period | 487,755 | |||
Stock repurchased, average costs per share | $ 46.69 | |||
Stock Repurchase Plan [Member] | Restricted Stock [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Shares withheld to satisfy tax withholding obligations | 302,424 | |||
Stock Repurchase Plan [Member] | Maximum [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Stock repurchase plan, authorization amount | $ 50,000,000 | |||
Net Long-Term Debt, Less Current Portion [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Change in adoption of recent accounting pronouncements on other assets and long term debt | $ 100,000 | |||
Deposits and Other Assets [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Change in adoption of recent accounting pronouncements on other assets and long term debt | $ 100,000 | |||
Adoption of New Pronouncements [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Excess tax benefits related to share-based payments in provision for income taxes | $ 6,800,000 | $ 6,800,000 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment and Associated Accumulated Depreciation and Amortization (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 103,741 | $ 68,452 |
Less: accumulated depreciation and amortization | (33,088) | (24,894) |
Property and equipment, net | 87,285 | 58,858 |
Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 47,855 | 28,154 |
Software and Capitalized Software Costs [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 21,281 | 13,959 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 17,071 | 11,346 |
Rental Clocks [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 10,069 | 8,750 |
Furniture, Fixtures and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 6,364 | 5,464 |
Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 421 | 421 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 680 | 358 |
Excluded Land and Construction in Process [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, net | 70,653 | 43,558 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, net | 8,993 | 8,993 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, net | $ 7,639 | $ 6,307 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | |||||
Retainage amount included in construction in progress | $ 600,000 | $ 600,000 | $ 400,000 | ||
Depreciation and amortization | 2,032,000 | $ 1,457,000 | 5,578,000 | $ 4,180,000 | |
Interest cost paid | 300,000 | 300,000 | 1,000,000 | 900,000 | |
Interest costs capitalized | 100,000 | 0 | 300,000 | 0 | |
Computer software development costs capitalized | 2,900,000 | 1,100,000 | 6,600,000 | 2,700,000 | |
Property and Equipment [Member] | |||||
Property Plant And Equipment [Line Items] | |||||
Depreciation and amortization | $ 3,200,000 | $ 2,000,000 | $ 8,500,000 | $ 5,600,000 |
Goodwill and Intangible Asset28
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | $ 51,889,000 | $ 51,889,000 | $ 51,889,000 | |||
Goodwill impairment amount | $ 0 | $ 0 | $ 0 | |||
Weighted average remaining useful life | 3 years 4 months 24 days | |||||
Amortization of intangible assets | $ 400,000 | $ 400,000 | $ 1,200,000 | $ 1,200,000 |
Goodwill and Intangible Asset29
Goodwill and Intangible Assets, Net - Components of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life | 3 years 4 months 24 days | |
Gross | $ 17,191 | $ 17,191 |
Accumulated Amortization | (14,917) | (13,707) |
Net | $ 2,274 | $ 3,484 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life | 8 months 12 days | 1 year 6 months |
Gross | $ 13,997 | $ 13,997 |
Accumulated Amortization | (12,947) | (11,897) |
Net | $ 1,050 | $ 2,100 |
Trade Name [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life | 5 years 9 months 18 days | 6 years 6 months |
Gross | $ 3,194 | $ 3,194 |
Accumulated Amortization | (1,970) | (1,810) |
Net | $ 1,224 | $ 1,384 |
Long-Term Debt, Net - Schedule
Long-Term Debt, Net - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Capitalization Longterm Debt [Line Items] | ||
Total long-term debt (including current portion) | $ 30,090 | $ 25,742 |
Less: Current portion | (1,090) | (886) |
Total long-term debt, net | 29,000 | 24,856 |
2021 Consolidated Loan [Member] | ||
Schedule Of Capitalization Longterm Debt [Line Items] | ||
Term note to bank | 25,162 | $ 25,742 |
2022 Consolidated Loan [Member] | ||
Schedule Of Capitalization Longterm Debt [Line Items] | ||
Term note to bank | $ 4,928 |
Long-Term Debt, Net - Additiona
Long-Term Debt, Net - Additional Information (Detail) - USD ($) | Aug. 02, 2016 | Aug. 01, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | May 03, 2015 |
Debt Instrument [Line Items] | |||||
Total long-term debt, including current portion | $ 30,090,000 | $ 25,742,000 | |||
2015 Construction Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity period of term loan | 78 months | ||||
Converted outstanding principal balance | $ 5,000,000 | ||||
Loan, principal amount | $ 11,000,000 | ||||
Construction loan, percentage of appraised value of constructed property | 80.00% | ||||
2022 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | Dec. 31, 2022 | ||||
Debt instrument, interest rate | 3.40% | ||||
2016 Construction Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 4.00% | ||||
Loan, principal amount | $ 28,600,000 | ||||
Construction loan, percentage of appraised value of constructed property | 80.00% | ||||
Construction loan, maturity date description | The 2016 Construction Loan matures on the earlier of the completion of construction or February 2, 2019, with interest accruing at the greater of (i) the prime rate, plus 50 basis points or (ii) 4.0%. | ||||
Construction loan, outstanding borrowings | $ 0 | ||||
2016 Construction Loan [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity period of term loan | 84 months | ||||
Construction loan, maturity date description | At maturity, the outstanding principal balance of the 2016 Construction Loan, if any, will be automatically converted into an 84-month term loan | ||||
2016 Construction Loan [Member] | Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument basis spread on variable rate | 0.50% | ||||
2016 Construction Loan [Member] | London Interbank Offered Rate LIBOR [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument basis spread on variable rate | 2.25% | ||||
2021 Consolidated Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, restrictive covenants | Maintaining a fixed charge coverage ratio of EBITDA to indebtedness (defined as current maturities of long-term debt, interest expense, rent expense and distributions), as defined in the agreement, of greater than 1.2 to 1.0 | ||||
Debt instrument maturity date | May 30, 2021 | ||||
Debt instrument, interest rate | 4.75% | ||||
2021 Consolidated Loan [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt coverage ratio of indebtedness | 120.00% |
Employee Savings Plan and Emplo
Employee Savings Plan and Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
401(k) eligibility minimum service period | 90 days | |||
401(k) description of plan contributions | Contribution for our employees equal to 100% of the first 1% of salary deferrals and 50% of salary deferrals between 2% and 6%, up to a maximum matching contribution of 3.5% of an employee’s salary each plan year. | |||
Employee vested percentage in salary deferrals and roll over contributions | 100.00% | |||
Minimum period for vesting 100% contributions | 2 years | |||
Minimum period for vesting of discretionary contributions | 2 years | |||
Matching contribution amount | $ 0.9 | $ 0.6 | $ 2.5 | $ 1.8 |
Employee stock purchase plan overlapping offering period | 24 months | |||
Employee Stock Purchase Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employees Company's common stock shares purchase limit percentage | 10.00% | 10.00% | ||
Maximum number of shares that may be purchased by a participant | 2,000 | |||
Share of common stock purchase maximum | 2,000,000 | |||
Purchase of shares of common stock | 90,571 | |||
Compensation expense related to ESPP | $ 0.1 | $ 0.1 | $ 0.4 | $ 0.2 |
After Two Years Of Employment [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Matching contributions, vesting percentage | 100.00% | |||
One Hundred Percent Match For Percent Of Participants Contribution [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contribution percentage | 100.00% | |||
Percentage of salary deferrals | 1.00% | |||
50% Matching Contribution [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contribution percentage | 50.00% | |||
Minimum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
401(k) eligible age of employee | 21 years | |||
Minimum [Member] | 50% Matching Contribution [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of salary deferrals | 2.00% | |||
Maximum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of salary deferrals | 3.50% | |||
Maximum [Member] | Employee Stock Purchase Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Purchase price of common stock expressed as a percentage of its fair market value | 85.00% | |||
Maximum [Member] | 50% Matching Contribution [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of salary deferrals | 6.00% |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net income | $ 6,198 | $ 3,847 | $ 35,207 | $ 15,788 |
Less: income allocable to participating securities | (47) | (49) | (271) | (205) |
Income allocable to common shares | 6,151 | 3,798 | 34,936 | 15,583 |
Add back: undistributed earnings allocable to participating securities | 47 | 49 | 271 | 206 |
Less: undistributed earnings reallocated to participating securities | (47) | (49) | (271) | (200) |
Numerator for diluted earnings per share | $ 6,151 | $ 3,798 | $ 34,936 | $ 15,589 |
Denominator: | ||||
Weighted average common shares outstanding | 50,315,455 | 50,315,455 | 50,315,455 | 50,315,455 |
Weighted average common shares repurchased | (329,586) | (117,296) | ||
Adjustment for vested restricted stock | 7,833,865 | 6,735,229 | 7,317,687 | 5,972,524 |
Shares for calculating basic earnings per share | 57,819,734 | 57,050,684 | 57,515,846 | 56,287,979 |
Dilutive effect of unvested restricted stock | 1,087,547 | 1,317,146 | 1,277,633 | 1,483,701 |
Shares for calculating diluted earnings per share | 58,907,281 | 58,367,830 | 58,793,479 | 57,771,680 |
Earnings per share: | ||||
Basic | $ 0.11 | $ 0.07 | $ 0.61 | $ 0.28 |
Diluted | $ 0.10 | $ 0.07 | $ 0.59 | $ 0.27 |
Stockholders' Equity and Stoc34
Stockholders' Equity and Stock-Based Compensation - Additional Information (Detail) - USD ($) | Aug. 01, 2016 | Jul. 28, 2016 | Jul. 08, 2016 | May 02, 2016 | Apr. 15, 2016 | Jul. 08, 2015 | Mar. 02, 2015 | Dec. 01, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation cost | $ 18,742,000 | $ 1,807,000 | ||||||||||
Software and Capitalized Software Costs [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Capitalized compensation cost | $ 1,100,000 | 1,400,000 | ||||||||||
Vest 50% upon reaching a total enterprise value of $1.4 billion [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Market-based vesting percentage, restricted shares | 50.00% | |||||||||||
Total enterprise value | $ 1,400,000,000 | |||||||||||
Vest 50% upon reaching a total enterprise value of $1.8 billion [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Market-based vesting percentage, restricted shares | 50.00% | |||||||||||
Total enterprise value | $ 1,800,000,000 | |||||||||||
Vest 50% when Company reaches a total enterprise value of $2.65 billion [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Market-based vesting percentage, restricted shares | 50.00% | |||||||||||
Total enterprise value | $ 2,650,000,000 | |||||||||||
2014 Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense recognized | $ 300,000 | 300,000 | ||||||||||
Total unrecognized compensation cost related to unvested restricted stock | 200,000 | $ 200,000 | ||||||||||
Unrecognized compensation expected to be recognized | 1 year 3 months 18 days | |||||||||||
2015 Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation cost | $ 3,800,000 | |||||||||||
Shares vesting | 234,350 | |||||||||||
Shares withheld to satisfy tax withholding obligations | 90,703 | |||||||||||
2015 Restricted Stock [Member] | LTIP [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted shares of common stock issued | 741,931 | |||||||||||
2015 Restricted Stock [Member] | Time-based Vesting Conditions [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested | 37,047 | |||||||||||
Shares withheld to satisfy tax withholding obligations | 12,593 | |||||||||||
2015 Restricted Stock [Member] | Vest 50% when Company reaches a total enterprise value of $3.5 billion [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Market-based vesting percentage, restricted shares | 50.00% | |||||||||||
Total enterprise value | 3,500,000,000 | $ 3,500,000,000 | ||||||||||
2016 Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation cost | $ 9,900,000 | |||||||||||
Shares vested | 490,700 | |||||||||||
Shares withheld to satisfy tax withholding obligations | 199,128 | |||||||||||
2016 Restricted Stock [Member] | LTIP [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted shares of common stock issued | 847,928 | |||||||||||
2016 Restricted Stock [Member] | Market-based Vesting Conditions [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total enterprise value | $ 2,650,000,000 | |||||||||||
Restricted common stock, expiration period | 6 years | |||||||||||
Post-IPO Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense recognized | 14,200,000 | $ 18,700,000 | ||||||||||
Total unrecognized compensation cost related to unvested restricted stock | 18,200,000 | $ 18,200,000 | ||||||||||
Unrecognized compensation expected to be recognized | 2 years 2 months 12 days | |||||||||||
Share-based compensation award vesting period | 4 years 2 months 12 days | |||||||||||
Post-IPO Restricted Stock [Member] | LTIP [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted shares of common stock issued | 5,132 | |||||||||||
Maximum [Member] | Software and Capitalized Software Costs [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Capitalized compensation cost | $ 100,000 | $ 100,000 | ||||||||||
Maximum [Member] | 2014 Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense recognized | $ 100,000 | $ 100,000 | ||||||||||
Maximum [Member] | 2015 Restricted Stock [Member] | Time-based Vesting Conditions [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation award vesting period | 5 years | |||||||||||
Maximum [Member] | Post-IPO Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted stock awards grant date fair value | $ 27.40 | |||||||||||
Minimum [Member] | 2015 Restricted Stock [Member] | Time-based Vesting Conditions [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation award vesting period | 3 years | |||||||||||
Minimum [Member] | Post-IPO Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted stock awards grant date fair value | $ 21.76 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - 417 Oakbend, LP [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | May 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | ||||||
Payments for rent | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.3 | ||
Registration and related expenses | $ 0.7 | $ 0.5 | ||||
Registration rights agreement date | Dec. 30, 2013 | |||||
Chief Sales Officer [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
General partnership ownership interest in related party, percentage | 0.01% | 0.01% | ||||
Limited partnership interest in related party, percentage | 10.49% | 10.49% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Other Commitments [Line Items] | |||||
Liability for deferred rent | $ 1.1 | $ 1.1 | $ 0.8 | ||
Operating lease rent expense | $ 1.5 | $ 1.1 | $ 4.2 | $ 3.3 | |
Minimum [Member] | |||||
Other Commitments [Line Items] | |||||
Operating lease expiration year | 2,017 | ||||
Maximum [Member] | |||||
Other Commitments [Line Items] | |||||
Operating lease expiration year | 2,023 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 20.87% | 42.13% | ||
Income tax (benefit) expense | $ (6,081) | $ 2,763 | $ 9,287 | $ 11,496 |
Excess tax benefits related to share-based payments in provision for income taxes | $ 6,800 | $ 6,800 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Executive Officers and Certain Non-executive and Non-sales Employees [Member] | Oct. 04, 2016USD ($)shares |
Restricted Stock [Member] | |
Subsequent Event [Line Items] | |
Restricted shares of common stock issued | 721,100 |
Market-Based Restricted Shares [Member] | |
Subsequent Event [Line Items] | |
Restricted shares of common stock issued | 510,550 |
Market-Based Restricted Shares [Member] | Vest 50% When Company's Total Enterprise Value Equals or Exceeds $3.9 Billion [Member] | |
Subsequent Event [Line Items] | |
Restricted shares award, vesting percentage | 50.00% |
Market-Based Restricted Shares [Member] | Vest 50% When Company's Total Enterprise Value Equals or Exceeds $3.9 Billion [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
Total enterprise value | $ | $ 3,900,000,000 |
Market-Based Restricted Shares [Member] | Vest 50% When Company's Total Enterprise Value Equals or Exceeds $4.2 Billion [Member] | |
Subsequent Event [Line Items] | |
Restricted shares award, vesting percentage | 50.00% |
Market-Based Restricted Shares [Member] | Vest 50% When Company's Total Enterprise Value Equals or Exceeds $4.2 Billion [Member] | Minimum [Member] | |
Subsequent Event [Line Items] | |
Total enterprise value | $ | $ 4,200,000,000 |
Time Based Restricted Shares | |
Subsequent Event [Line Items] | |
Restricted shares of common stock issued | 210,550 |
Time Based Restricted Shares | Share Based Award Vesting on Specified Initial Vesting Date [Member] | |
Subsequent Event [Line Items] | |
Restricted shares award, vesting percentage | 20.00% |
Time Based Restricted Shares | Share Based Award Vesting on First Anniversary From Initial Vesting Date [Member] | |
Subsequent Event [Line Items] | |
Restricted shares award, vesting percentage | 20.00% |
Time Based Restricted Shares | Share Based Award Vesting on Second Anniversary From Initial Vesting Date [Member] | |
Subsequent Event [Line Items] | |
Restricted shares award, vesting percentage | 20.00% |
Time Based Restricted Shares | Share Based Award Vesting on Third Anniversary From Initial Vesting Date [Member] | |
Subsequent Event [Line Items] | |
Restricted shares award, vesting percentage | 20.00% |
Time Based Restricted Shares | Share Based Award Vesting on Fourth Anniversary From Initial Vesting Date [Member] | |
Subsequent Event [Line Items] | |
Restricted shares award, vesting percentage | 20.00% |