Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | EFII | |
Entity Registrant Name | ELECTRONICS FOR IMAGING INC | |
Entity Central Index Key | 867,374 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 43,931,611 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 180,942 | $ 170,345 |
Short-term investments | 112,986 | 148,697 |
Accounts receivable, net of allowances of $30.2 million and $32.2 million, respectively | 240,150 | 244,416 |
Inventories | 121,290 | 125,813 |
Income taxes receivable | 13,958 | 4,565 |
Assets held for sale | 3,143 | 4,200 |
Other current assets | 47,814 | 41,799 |
Total current assets | 720,283 | 739,835 |
Property and equipment, net | 79,495 | 98,762 |
Restricted cash equivalents | 39,809 | 32,531 |
Goodwill | 394,372 | 403,278 |
Intangible assets, net | 86,246 | 123,008 |
Deferred tax assets | 43,265 | 45,083 |
Other assets | 34,369 | 15,504 |
Total assets | 1,397,839 | 1,458,001 |
Current liabilities: | ||
Accounts payable | 118,703 | 123,935 |
Accrued and other liabilities | 74,797 | 98,090 |
Deferred revenue | 65,181 | 55,833 |
Convertible senior notes, net – current | 330,367 | 0 |
Income taxes payable | 6,762 | 5,309 |
Total current liabilities | 595,810 | 283,167 |
Convertible senior notes, net – non-current | 0 | 318,957 |
Imputed financing obligation related to build-to-suit lease | 0 | 13,944 |
Noncurrent contingent and other liabilities | 17,307 | 28,801 |
Deferred tax liabilities | 6,151 | 11,652 |
Noncurrent income taxes payable | 18,305 | 20,169 |
Total liabilities | 637,573 | 676,690 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 150,000 shares authorized; 54,990 and 54,249 shares issued, respectively | 550 | 542 |
Additional paid-in capital | 785,475 | 745,661 |
Treasury stock, at cost; 10,747 and 9,070 shares, respectively | (428,074) | (375,574) |
Accumulated other comprehensive income (loss) | (6,996) | 8,138 |
Retained earnings | 409,311 | 402,544 |
Total stockholders’ equity | 760,266 | 781,311 |
Total liabilities and stockholders’ equity | $ 1,397,839 | $ 1,458,001 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 30.2 | $ 32.2 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 54,990 | 54,249 |
Treasury stock, shares | 10,747 | 9,070 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Income Statement [Abstract] | |||||
Revenue | $ 257,134 | $ 248,359 | $ 758,072 | $ 724,097 | |
Cost of revenue | [1] | 131,615 | 120,902 | 384,858 | 345,858 |
Gross profit | 125,519 | 127,457 | 373,214 | 378,239 | |
Operating expenses: | |||||
Research and development | [1] | 40,341 | 39,585 | 119,701 | 118,201 |
Sales and marketing | [1] | 44,661 | 42,269 | 137,448 | 129,018 |
General and administrative | [1] | 24,466 | 25,075 | 57,093 | 67,239 |
Amortization of identified intangibles | 11,137 | 12,299 | 34,801 | 34,829 | |
Restructuring and other | 2,799 | 832 | 10,477 | 5,421 | |
Total operating expenses | 123,404 | 120,060 | 359,520 | 354,708 | |
Income from operations | 2,115 | 7,397 | 13,694 | 23,531 | |
Interest expense | (4,796) | (4,912) | (14,739) | (14,538) | |
Interest income and other income, net | 336 | 1,760 | 1,270 | 2,802 | |
Income (loss) before income taxes | (2,345) | 4,245 | 225 | 11,795 | |
Benefit from (provision for) income taxes | 4,265 | (791) | 1,868 | (795) | |
Net income | $ 1,920 | $ 3,454 | $ 2,093 | $ 11,000 | |
Net income per basic common share (in usd per share) | $ 0.04 | $ 0.07 | $ 0.05 | $ 0.24 | |
Net income per diluted common share (in usd per share) | $ 0.04 | $ 0.07 | $ 0.05 | $ 0.23 | |
Shares used in basic per-share calculation (in shares) | 44,428 | 46,348 | 44,714 | 46,442 | |
Shares used in diluted per-share calculation (in shares) | 45,354 | 46,937 | 45,388 | 47,102 | |
[1] | Includes stock-based compensation expense as follows: Three Months EndedSeptember 30, Nine Months Ended September 30, 2018 2017 2018 2017Cost of revenue$904 $486 $2,715 $1,985Research and development3,649 1,640 9,517 7,556Sales and marketing2,377 1,108 6,767 5,176General and administrative4,993 1,414 11,479 7,824 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock-based compensation expense | $ 11,923 | $ 4,648 | $ 30,478 | $ 22,541 |
Cost of revenue | ||||
Stock-based compensation expense | 904 | 486 | 2,715 | 1,985 |
Research and development | ||||
Stock-based compensation expense | 3,649 | 1,640 | 9,517 | 7,556 |
Sales and marketing | ||||
Stock-based compensation expense | 2,377 | 1,108 | 6,767 | 5,176 |
General and administrative | ||||
Stock-based compensation expense | $ 4,993 | $ 1,414 | $ 11,479 | $ 7,824 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 1,920 | $ 3,454 | $ 2,093 | $ 11,000 | |
Net unrealized investment gains (losses): | |||||
Unrealized holding gains (losses), net of tax | [1] | 182 | 48 | (254) | 283 |
Reclassification adjustments included in net income, net of tax | [1] | (1) | (27) | 10 | (49) |
Net unrealized investment gains (losses) | 181 | 21 | (244) | 234 | |
Currency translation adjustments | (1,975) | 4,931 | (14,850) | 23,121 | |
Net unrealized losses on cash flow hedges | 0 | (28) | (41) | (24) | |
Comprehensive income (loss) | $ 126 | $ 8,378 | $ (13,042) | $ 34,331 | |
[1] | Tax effects were less than $0.2 million for the periods presented above. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gains (losses), tax provisions (benefits) (less than) | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 |
Reclassification adjustments included in net income (loss), tax provisions (benefits) (less than) | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 2,093 | $ 11,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 50,094 | 48,029 | |
Deferred taxes | (248) | (9,149) | |
Provisions for bad debt and sales-related allowances | 2,424 | 10,868 | |
Provision for inventory obsolescence | 4,488 | 3,642 | |
Stock-based compensation expense | 30,478 | 22,541 | |
Non-cash accretion of interest expense on convertible notes and imputed financing obligation | 11,304 | 11,211 | |
Change in fair value of contingent consideration, including accretion | 11,860 | (2,187) | |
Net change in derivative assets and liabilities | (2,431) | 737 | |
Other non-cash charges | 88 | 330 | |
Changes in operating assets and liabilities, net of effect of acquired businesses | (36,275) | (58,955) | |
Net cash provided by operating activities | 50,155 | 42,441 | |
Cash flows from investing activities: | |||
Purchases of short-term investments | 0 | (87,623) | |
Proceeds from sales and maturities of short-term investments | 35,129 | 164,979 | |
Purchases of restricted investments | [1] | 0 | (15,775) |
Purchases, net of proceeds from sales, of property and equipment | (9,785) | (8,745) | |
Proceeds from sale of held-for-sale building and land | 1,137 | 0 | |
Businesses purchased, net of cash acquired | 696 | (16,739) | |
Net cash provided by (used for) investing activities | [1] | 27,177 | 36,097 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 10,165 | 11,730 | |
Purchases of treasury stock and net share settlements | (52,500) | (56,937) | |
Repayment of acquisition-related debt | (11,956) | (10,786) | |
Contingent consideration payments related to businesses acquired | (3,116) | (9,512) | |
Net cash used for financing activities | (57,407) | (65,505) | |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash equivalents | (2,050) | 4,168 | |
Increase in cash, cash equivalents, and restricted cash equivalents | [1] | 17,875 | 17,201 |
Cash, cash equivalents, and restricted cash equivalents at beginning of period | [1] | 202,876 | 165,455 |
Cash, cash equivalents, and restricted cash equivalents at end of period | [1] | $ 220,751 | $ 182,656 |
[1] | Certain prior period amounts have been revised due to the implementation of ASU 2016-18. See Note 1 for details. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements (“condensed consolidated financial statements”) include the accounts of Electronics For Imaging, Inc. and its subsidiaries (“EFI” or “Company”). All intercompany accounts and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information, rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements, and accounting policies consistent in all material respects with those applied in preparing our audited annual consolidated financial statements included in our Annual Report on Form 10-K, as amended by Amendment No. 1, for the year ended December 31, 2017 (the “2017 Form 10-K”). These condensed consolidated financial statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and notes included in the 2017 Form 10-K. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments, management considers necessary for the fair presentation of our financial position, operating results, comprehensive income, and cash flows for the interim periods presented. Our results for the interim periods are not necessarily indicative of results for the entire year. Out-of-Period Adjustments In the nine months ended September 30, 2017, we recorded out-of-period adjustments related to certain bill and hold transactions, which decreased revenue by $3.4 million , gross profit by $0.5 million , and net income by $0.3 million (or $0.01 per diluted share). We evaluated these adjustments considering both qualitative and quantitative factors and their impact in relation to each period, as well as the periods in which they originated. The impact of recognizing these adjustments in prior years was not significant to any individual period. Management believes the adjustments are immaterial to these condensed consolidated financial statements for the nine months ended September 30, 2017 and all previously issued financial statements. Recently Adopted Accounting Pronouncements Revenue Recognition . Effective January 1, 2018, we adopted Accounting Standards Codification (“ASC”) 606 Revenue from Contracts with Customers (“ASC 606”) using the modified retrospective method applied to all incomplete contracts as of the date of initial application. ASC 606 supersedes the revenue recognition requirements in ASC 605, Revenue Recognition (“ASC 605”), and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. In addition, ASC 606 requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Effective January 1, 2018, we also adopted ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers (“ASC 340-40”), using the modified retrospective method to all incomplete contracts as of the date of initial application. ASC 340-40 requires the deferral of incremental costs of obtaining a contract with a customer. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 and ASC 340-40, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. Additional discussion of these recently adopted pronouncements and their impact on our Condensed Consolidated Financial Statements is included below under Significant Accounting Policies, in Note 4 – Revenue , and in Note 5 – Supplemental Financial Statement Information . Income Taxes . Staff Accounting Bulletin (“SAB”) 118 provides guidance for the application of ASC 740 for a measurement period to complete the accounting for certain elements of the Tax Cut & Jobs Act of 2017 (the “2017 Tax Act”). The measurement period is defined as up to one year from the enactment date, which will expire on December 22, 2018. SAB 118 requires that we recognize those income tax effects in our financial statements for which the accounting can be completed, as may be the case for the effect of rate changes on deferred tax assets and deferred tax liabilities. For matters that have not been completed, we are required to recognize provisional amounts to the extent that they are reasonably estimable, adjust them during the measurement period when more information becomes available, and report this information in our financial statements in that period. See additional information in Note 14 – Income Taxes. Restricted Cash . Accounting Standard Update (“ASU”) 2016-18, Statement of Cash Flows: Restricted Cash , became effective in the first quarter of 2018 and requires the statement of cash flows to explain the change in cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts in the statement of cash flows. We previously included the changes in restricted cash equivalents in operating or investing activities in the Consolidated Statements of Cash Flows. Prior period amounts have been revised to conform to the current year presentation. Reconciliation of cash, cash equivalents, and restricted cash equivalents (in thousands) September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Cash and cash equivalents $ 180,942 $ 170,345 $ 175,830 $ 164,313 Restricted cash equivalents 39,809 32,531 6,826 1,142 Total cash, cash equivalents, and restricted cash equivalents shown in the statement of cash flows $ 220,751 $ 202,876 $ 182,656 $ 165,455 Definition of a Business . In January 2017, the Financial Accounting Standard Board (“FASB’) issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business , which became effective in the first quarter of 2018 and significantly narrows how businesses are defined. Under ASU 2017-01, when substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar identifiable assets, then the assets acquired do not constitute a business. If substantially all of the fair value of the gross assets acquired is not concentrated in a single asset or group of similar assets, then the assets acquired may constitute a business if certain criteria are met. We must determine whether the acquired gross assets and activities include an input and a “substantive” process that together “significantly” contribute to the ability to create an output. A framework and specific criteria are provided to assist with the evaluation of whether a process is “substantive” and “significantly contributes” to the ability to create an output. “Output” is narrowly defined to be consistent with the description of a performance obligation in the new revenue guidance or this ASU. Missing inputs and processes may not be replaced by integration with our own inputs and processes under the new guidance. The adoption of ASU 2017-1 did not impact our condensed consolidated financial statements as of September 30, 2018 because we did not acquire a business during the nine months ended September 30, 2018 . Nonfinancial Asset Derecognition . In February 2017, the FASB issued ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets: Clarifying the Scope of Asset Derecognition and Accounting for Partial Sales of Nonfinancial Assets , which clarifies the scope of recent guidance as it relates to nonfinancial asset derecognition and the accounting for partial sales of nonfinancial assets. The ASU conforms the derecognition guidance as it relates to nonfinancial assets with the derecognition guidance in the new revenue standard (ASC 606) and is not expected to have a material impact on the accounting for real estate dispositions. ASU 2017-5 became effective in the first quarter of 2018. During the nine months ended September 30, 2018 , we sold a non-financial asset, which is discussed further in Note 10 – Commitments and Contingencies . There was no material impact from the adoption of this ASU in our condensed consolidated financial statements during the three and nine months ended September 30, 2018 . Stock Compensation Modification . In May 2017, the FASB issued ASU 2017-09, Stock Compensation – Scope of Modification Accounting , which clarifies the scope of modification accounting for share-based payment arrangements, which became effective in the first quarter of 2018. Specifically, we do not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. We elected to adopt this guidance prospectively to awards modified on or after the adoption date. The adoption of ASU 2017-09 did not have a material impact on our condensed consolidated financial statements during the three and nine months ended September 30, 2018 . Settlement of Convertible Debt . ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , issued in August 2016, requires that cash settlements of principal amounts of debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the debt must classify the portion of the principal payment attributable to the accreted interest related to the debt discount as cash outflows from operating activities. This is consistent with the classification of the coupon interest payments. ASU 2016-15 became effective in the first quarter of 2018. Accordingly, $63.6 million of the debt discount attributable to the difference between the 0.75% coupon interest rate on our 0.75% Convertible Senior Notes due 2019 (“Notes”) and the 4.98% ( 5.46% inclusive of debt issuance costs) effective interest rate on the Notes will be classified as an operating cash outflow in the Condensed Consolidated Statement of Cash Flows upon any cash settlement of the Notes. The Notes were not settled as of September 30, 2018 . We will apply ASU 2016-15 upon any cash settlement of the Notes. Recent Accounting Pronouncements Not Yet Adopted Lease Arrangements . Under current guidance, the classification of a lease by a lessee as either an operating or capital lease determines whether an asset and liability is recognized on the balance sheet. ASU 2016-2, Leases , which was issued in February 2016 and will be effective in the first quarter of 2019, requires that a lessee recognize an asset and liability on its balance sheet related to all leases with terms more than one year. For all leases, a lessee will be required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position. The right-to-use asset represents the right to use the underlying asset during the lease term. The recognition, measurement, and presentation of expenses and cash flows by a lessee will not significantly change from previous guidance. There continues to be a differentiation between finance leases and operating leases. The criteria for determining whether a lease is a finance or operating lease are substantially the same as existing guidance except that the “bright line” percentages have been removed. Also, an additional criterion has been added in the new guidance to consider whether the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Additional judgment will be required in applying the new lease guidance. • For finance leases, interest is recognized on the lease liability separately from depreciation of the right-of-use asset in the statement of operations. Principal repayments are classified within financing activities and interest payments are classified as operating activities in the statement of cash flows. • For operating leases, a lessee is required to recognize lease expense generally on a straight-line basis. All operating lease payments are classified as operating activities in the statement of cash flows. The current build-to-suit lease accounting guidance will be rescinded by the new guidance, although simplified guidance will remain regarding lessee control during the construction period. Consequently, the accounting for build-to-suit leases will be the same as operating leases unless the lessee control provisions are applicable. We expect to apply the additional transition method provided in ASU 2018-11, which allows us to initially apply the new leases standard at our January 1, 2019 adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. We expect to elect all of the available transition practical expedients which permit us not to reassess our prior conclusions about lease identification, lease classification, and initial direct costs. While we continue to assess the effects of the adoption, we have not yet quantified the impact but we believe there will be material increases in our non-current assets and liabilities, and in our current liabilities on our Consolidated Balance Sheets at the time of adoption. The adoption of this new standard to our lease transactions as lessee is not expected to have a material impact on our results of operations as reflected in our Consolidated Statements of Operations. We do not expect a material impact on our results of operations or financial position from adoption of this standard to our lease transactions as lessor. Significant Accounting Policies There have been no material changes in our significant accounting policies, as compared to the significant accounting policies described in our 2017 Form 10-K, with the exception of the following: Revenue Recognition On January 1, 2018, we adopted ASC 606 using the modified retrospective method applied to contracts that were not completed as of January 1, 2018. On January 1, 2018, we also adopted ASC 340-40 using the modified retrospective method applied to all contracts as of the date of initial application. We apply judgment in determining the customer’s ability and intention to pay. Judgments are made after considering a variety of factors including the customer’s historical payment experience, current creditworthiness, current economic impacts on the customer, past due balances, and significant one-time events or, in the case of a new customer, published credit and financial information. For customer arrangements that include multiple products or services, judgment is required to determine the standalone selling price (“SSP”) for each distinct performance obligation. Where an observable price is not available, we gather all reasonable available data points, consider adjustments based on market conditions, entity-specific factors, and the need to stratify selling prices into meaningful groups (e.g., geographic region) in determining SSP. We allocate the total contract consideration to each distinct performance obligation on a relative SSP basis. Revenue is then recognized in accordance with the timing of the transfer of control of each performance obligation to the customer. Accounting for long-term contracts where we provide information technology system development and implementation services requires significant judgment to estimate total contract revenue and costs. For long-term contracts, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete the services. We then recognize that revenue and profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that could span several years. A change in our estimate of total costs to complete could affect the profitability of our contracts. We review and update our contract-related estimates regularly, and the effects of changes, if any, are reflected in the Condensed Consolidated Statements of Operations in the period that they are determined. Changes in estimates related to certain types of contracts accounted for using an input method measure of progress, such as cost-to-cost, can occur over the life of a contract for a variety of reasons, including the availability of labor and labor productivity, the nature and complexity of the work to be performed, cost estimates, level of effort and/or other assumptions impacting revenue or cost to perform a contract. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If, at any time, the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the quarter it is identified. Management exercises judgment to determine the period of benefit to amortize contract acquisition costs by considering factors such as expected renewals of customer contracts, duration of customer relationships and our technology development life cycle. Although we believe that the historical assumptions and estimates we have made are reasonable and appropriate, different assumptions and estimates could materially impact our reported financial results. Amortization of deferred contract acquisition costs is included in sales and marketing expense in the Condensed Consolidated Statements of Operations. We periodically review these deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred contract acquisition costs. The nature of our products and services are as follows: Hardware . Our hardware, such as Industrial Inkjet printers and Fiery digital front ends (“DFEs”), is generally sold with software that is integral to the functionality of the product. In these cases, the hardware and software license are accounted for as a single performance obligation. The contract consideration is generally in the form of a fixed fee at contract inception and revenue is recognized at the point in time when control is transferred to the customer. Consideration received from customers may include trade-in printers, which are valued at the lower of cost or net realizable value. We offer shipping and handling services to customers related to the sale of hardware. We have elected the practical expedient to account for shipping and handling activities performed after transferring control of goods to our customer as a cost to fulfill the contract. The cost of shipping and handling is accrued at the point in which control transfers to the customer and revenue is recognized. Ink . We typically enter into contracts with our existing customer base of installed printers to purchase ink that is not bundled with other deliverables within the contract. The ink is accounted for as a single performance obligation and revenue is recognized at the point in time when control of the ink is transferred to the customer. Licenses . Our software license arrangements provide the customer with the right to install and use functional intellectual property (as it exists at the point in time at which the license is granted) for the duration of the contract term. Revenue from distinct software licenses is recognized at the point in time when the software is made available to the customer for download. Our software license arrangements are generally comprised of fixed license fees (“license fees”) that are payable upfront, annually, quarterly, or monthly based on negotiated customer payment terms. For software license arrangements in which a significant portion of the license fees are due more than 12 months after the software is delivered to the customer, a significant financing component may exist. The significant financing component is calculated as the difference between the stated value and present value of the software license fees and is recognized as interest income under the effective interest method over the contract term. The total software license fee net of the significant financing component is recognized as revenue at the point in time when the software is made available to the customer for download or when the software is shipped to the customer. In instances where the timing of revenue recognition and the timing of invoicing is one year or less, we follow the practical expedient and do not impute interest for these contracts. Maintenance . Our software license arrangements typically include an initial (bundled) post contract customer support (maintenance or “PCS”) term. Our promise to those customers who elect to purchase PCS represents a distinct, stand-alone performance obligation. Contract consideration is allocated to the PCS based on its relative SSP and revenue is recognized over the PCS term. Professional Services . We provide various professional services to customers, primarily project management, software implementation, non-recurring engineering design, and training. Revenues from arrangements to provide professional services are generally distinct from the other promises in the contract(s). The majority of our professional services contracts are billed on a time and materials basis and revenue is recognized over time as the services are performed. Software as a Service (“SaaS”) . Our SaaS-based arrangements provide customers with continuous access to our software solutions in the form of a service hosted in the cloud. These arrangements may include initial implementation and setup and/or on-going support that represent a single promise (i.e. each individual promised component is not distinct) to provide continuous access to the software solution. Any setup fees associated with our SaaS arrangements are recognized ratably over the contract term plus expected renewal periods. As the customer simultaneously receives and consumes the benefits as access is provided, our performance obligation under our SaaS-based arrangements is comprised of a series of distinct components delivered over time. Our SaaS-based arrangements consideration is typically fixed. Extended Service Plans (“ESP”) . For our hardware arrangements, we enter into contracts with certain customers to provide services to maintain and repair the hardware for an extended period. ESPs are classified as service-type warranties under ASC 606 as they are sold separately and provide services which are incremental to the assurance that the product will perform to the agreed upon standards. The ESPs are accounted for as a separate performance obligation. Revenue from ESPs are recognized ratably over the contract period as the service is provided. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Net income per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income per diluted common share is computed using the weighted average number of common and dilutive potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method, non-vested shares of time-based restricted stock units ("RSUs") having a dilutive effect, non-vested performance-based restricted stock units ("PSUs") for which the performance criteria have been met, shares to be purchased under our Employee Stock Purchase Plan (“ESPP”) having a dilutive effect, the assumed release of shares for the expected satisfaction of contingent consideration based on achievement of specified performance criteria related to the acquisition of Corrugated Technologies, Inc. (“CTI”), the assumed conversion of our Notes having a dilutive effect using the treasury stock method when the stock price exceeds the conversion price of the Notes, as well as the dilutive effect of our warrants when the stock price exceeds the warrant strike price. Our stock price has not exceeded the conversion price of the Notes or the strike price of the warrants during any periods presented. Any potential shares that are anti-dilutive are excluded from the effect of dilutive securities. PSUs and market-based restricted stock units that would be issuable if the end of the reporting period were the end of the vesting period, if the result would be dilutive, are assumed to be outstanding for purposes of determining net income per diluted common share as of the later of the beginning of the period or the grant date. Accordingly, PSUs, which vested on various dates during the three and nine months ended September 30, 2018 and 2017 , based on achievement of specified performance criteria related to revenue, cash flows from operating activities, and non-GAAP operating income targets, are included in the determination of net income per diluted common share as of the beginning of each period. Basic and diluted earnings per share are reconciled as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Basic net income per share: Net income available to common shareholders $ 1,920 $ 3,454 $ 2,093 $ 11,000 Weighted average common shares outstanding 44,428 46,348 44,714 46,442 Basic net income per share $ 0.04 $ 0.07 $ 0.05 $ 0.24 Diluted net income per share: Net income available to common shareholders $ 1,920 $ 3,454 $ 2,093 $ 11,000 Weighted average common shares outstanding 44,428 46,348 44,714 46,442 Dilutive stock options and non-vested RSUs and PSUs 926 589 674 660 Weighted average common shares outstanding for purposes of computing diluted net income per share 45,354 46,937 45,388 47,102 Diluted net income per share $ 0.04 $ 0.07 $ 0.05 $ 0.23 Potential shares of common stock that were not included in the determination of diluted net income per share because the impact of including them would have been anti-dilutive or performance conditions have not been met, consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 RSUs & PSUs 626 327 554 304 ESPP purchase rights 41 410 638 342 Total potential shares of common stock excluded from the computation of diluted earnings per share 667 737 1,192 646 The weighted-average number of common shares outstanding does not include the effect of the potential common shares from conversion of our Notes and exercise of our warrants because the effect would have been anti-dilutive since the conversion price of the Notes and the strike price of the warrants exceeded the average market price of our common stock. We have the option to pay cash, issue shares of common stock, or any combination thereof for the aggregate amount due upon conversion of the Notes. Our intent is to settle the principal amount of the Notes in cash upon conversion. As a result, only amounts payable in excess of the principal amount of the Notes are considered in diluted net income per share under the treasury stock method. The Note Hedges are not included in the calculation of diluted net income per share because the effect of any exercise of the Note Hedges would be anti-dilutive. Please refer to Note 9 – Convertible Senior Notes for additional information and definitions. |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Operating segment information is presented based on the internal reporting used by the chief operating decision making group (“CODM”) to allocate resources and evaluate operating segment performance. Our segments consist of Industrial Inkjet, Productivity Software, and Fiery. Industrial Inkjet consists of our VUTEk super-wide and wide format display graphics, Nozomi corrugated packaging and display, Reggiani textile, and Cretaprint ceramic tile decoration and building material industrial digital inkjet printers; digital ultra-violet (“UV”) curable, light-emitting diode (“LED”) curable, ceramic, water-based, and thermoforming and specialty inks, as well as a variety of textile inks including dye sublimation, pigmented, reactive dye, acid dye, pure disperse dye, water-based dispersed printing ink, supplies, and coatings; digital inkjet printer parts; and professional services. Printing surfaces include paper, vinyl, corrugated, textile, glass, plastic, aluminum composite, ceramic tile, wood, and many other flexible and rigid substrates. Productivity Software consists of a complete software suite that enables efficient and automated end-to-end business and production workflows for the print and packaging industry. This Productivity Suite also provides tools to enable revenue growth, efficient scheduling, and optimization of processes, equipment, and personnel. Customers are provided the financial and technical flexibility to deploy locally within their business or to be hosted in the cloud. The Productivity Suite addresses all segments of the print industry and consists of the: (i) Packaging Suite, with Radius at its core, for tag & label, cartons, and flexible packaging businesses; (ii) Corrugated Packaging Suite, with CTI at its core, for corrugated packaging businesses, including corrugated control capability using EFI Escada; (iii) Enterprise Commercial Print Suite, with Monarch at its core, for enterprise print businesses; (iv) Publication Print Suite, with Monarch or Technique at its core, for publication print businesses; (v) Midmarket Print Suite, with Pace at its core, for medium size print businesses; (vi) Quick Print Suite, with PrintSmith Vision and essential capabilities of Digital StoreFront at its core, for small printers and in-plant sites; and (vii) Value Added Products, available with the suite and standalone, such as web-to-print, e-commerce, cross media marketing, warehousing, fulfillment, shop floor data collection, and shipping to reduce costs, increase profits, and offer new products and services to their existing and future customers. We also market Optitex computer-aided fashion design (“fashion CAD”) software, which facilitates fast fashion and increased efficiency in the textile and fashion industries. Fiery consists of Fiery and FreeFlow Print Server (“FFPS”), which was acquired from Xerox Corporation (“Xerox”), that transform digital copiers and printers into high performance networked printing devices for the office, commercial and industrial printing markets. This operating segment is comprised of (i) stand-alone DFEs connected to digital printers, copiers, and other peripheral devices, (ii) embedded DFEs and design-licensed solutions used in digital copiers and multi-functional devices, (iii) optional software integrated into our DFE solutions such as Fiery Central, and Graphics Arts Package, (iv) Fiery Self Serve, our self-service and payment solution, and (v) stand-alone software-based solutions such as our proofing, textile, and scanning solutions. Operating income is not reported by operating segment because operating expenses include significant shared expenses and other costs that are managed outside of the operating segments. Such operating expenses include various corporate expenses such as stock-based compensation, corporate sales and marketing, research and development, amortization of identified intangibles, various non-recurring charges, and other separately managed general and administrative expenses. Our revenue and gross profit (i.e., gross profit excluding stock-based compensation expense) by operating segment are summarized as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Industrial Inkjet Revenue $ 154,902 $ 142,930 $ 453,545 $ 407,886 Gross profit 53,661 53,392 158,351 154,972 Gross profit percentages 34.6 % 37.4 % 34.9 % 38.0 % Productivity Software Revenue $ 40,452 $ 37,171 $ 125,839 $ 111,292 Gross profit 28,394 26,667 88,988 81,431 Gross profit percentages 70.2 % 71.7 % 70.7 % 73.2 % Fiery Revenue $ 61,780 $ 68,258 $ 178,688 $ 204,919 Gross profit 44,368 47,884 128,590 143,821 Gross profit percentages 71.8 % 70.2 % 72.0 % 70.2 % Operating segment profit is reconciled to our Condensed Consolidated Statements of Operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Segment gross profit $ 126,423 $ 127,943 $ 375,929 $ 380,224 Stock-based compensation expense (904 ) (486 ) (2,715 ) (1,985 ) Gross profit $ 125,519 $ 127,457 $ 373,214 $ 378,239 Tangible and intangible assets, net of liabilities, are summarized by operating segment as follows (in thousands): Industrial Inkjet Productivity Software Fiery Corporate and Unallocated Net Assets Total September 30, 2018 Goodwill $ 150,197 $ 170,098 $ 74,077 $ — $ 394,372 Identified intangible assets, net 45,688 24,903 15,655 — 86,246 Tangible assets, net of liabilities 251,948 (26,192 ) 25,738 28,154 279,648 Net tangible and intangible assets $ 447,833 $ 168,809 $ 115,470 $ 28,154 $ 760,266 December 31, 2017 Goodwill $ 154,373 $ 174,644 $ 74,261 $ — $ 403,278 Identified intangible assets, net 66,547 36,379 20,082 — 123,008 Tangible assets, net of liabilities 221,933 (27,755 ) 11,286 49,561 255,025 Net tangible and intangible assets $ 442,853 $ 183,268 $ 105,629 $ 49,561 $ 781,311 Corporate and unallocated net assets consist of cash and cash equivalents, short-term investments, restricted cash equivalents, corporate headquarters facility, convertible senior notes, imputed financing obligation related to build-to-suit lease, income taxes receivable, and income taxes payable. Revenue by Geographic Region We report revenue by geographic region based on ship-to destination which is summarized as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Americas $ 134,491 $ 129,488 $ 374,170 $ 353,397 Europe, Middle East, and Africa (“EMEA”) 88,879 85,089 271,064 274,635 Asia Pacific (“APAC”) 33,764 33,782 112,838 96,065 Total revenue $ 257,134 $ 248,359 $ 758,072 $ 724,097 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We derive our revenue primarily from product revenue, which includes industrial digital inkjet printers, ink, and parts; print production software; and DFEs. We receive service revenue from printer maintenance agreements, customer support, training, software development, and consulting. Upon the adoption of ASC 606 and ASC 340-40, we recorded a net increase to our opening balance of retained earnings of $4.7 million as of January 1, 2018, after considering the income tax impact, due to the cumulative effect of adoption. The adoption impact primarily related to capitalizing customer contract acquisition costs consisting of sales commissions, partially offset by an increase in deferred revenue to reflect the deferral of a significant financing component that will be recognized as interest income as payments are received over the contractual terms, and deferral of upfront setup fees that will be recognized ratably over the expected contractual terms. The cumulative effect of applying ASC 606 and ASC 340-40 to active contracts as of the adoption date resulted in the following adjustments to the Condensed Consolidated Balance Sheet as of January 1, 2018 (in thousands): Reported as of ASC 606 Adjustments As Adjusted Assets Accounts receivable, net $ 244,416 $ 102 $ 244,518 Other current assets 41,799 (1,628 ) 40,171 Deferred tax assets 45,083 (1,466 ) 43,617 Other assets 15,504 8,062 23,566 Liabilities Deferred revenue 55,833 (95 ) 55,738 Noncurrent contingent and other liabilities 28,801 491 29,292 Stockholders’ equity: Retained earnings 402,544 4,674 407,218 The impact of adopting ASC 606 and ASC 340-40 on our Condensed Consolidated Statement of Operations is summarized as follows (in thousands): Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Amounts in Amounts in Effect of change Amounts in Accordance with ASC 606 Amounts in Accordance with ASC 605 Effect of change higher (lower) Revenue $ 257,134 $ 255,746 $ 1,388 $ 758,072 $ 754,348 $ 3,724 Cost of revenue 131,615 131,067 548 384,858 384,509 349 Gross profit 125,519 124,679 840 373,214 369,839 3,375 Operating expenses 123,404 123,316 88 359,520 359,418 102 Income from operations 2,115 1,363 752 13,694 10,421 3,273 Interest income and other income, net 336 199 137 1,270 823 447 Income (loss) before income taxes (2,345 ) (3,234 ) 889 225 (3,495 ) 3,720 Benefits from income taxes 4,265 4,465 (200 ) 1,868 2,363 (495 ) Net income (loss) 1,920 1,231 689 2,093 (1,132 ) 3,225 The impact of adopting ASC 606 and ASC 340-40 on our Condensed Consolidated Balance Sheet as of September 30, 2018 was as follows (in thousands): Amounts in Accordance with ASC 606 Amounts in Accordance with ASC 605 Effect of change higher (lower) Assets Accounts receivable, net $ 240,150 $ 236,018 $ 4,132 Other current assets 47,814 49,790 (1,976 ) Deferred tax assets 43,265 45,226 (1,961 ) Other assets 34,369 26,409 7,960 Liabilities Deferred revenue 65,181 65,239 (58 ) Noncurrent contingent and other liabilities 17,307 16,993 314 Stockholders’ equity Retained earnings 409,311 401,412 7,899 The following table presents our disaggregated revenue by source (in thousands). Sales and usage-based taxes are excluded from revenue: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Industrial Productivity Fiery Total Industrial Inkjet Productivity Software Fiery Total Major Products and Service Lines: Industrial Inkjet Printers and parts $ 97,846 $ — $ — $ 97,846 $ 283,819 $ — $ — $ 283,819 Ink, supplies, and maintenance 57,056 — — 57,056 169,726 — — 169,726 Productivity Software Licenses — 10,774 — 10,774 — 34,086 — 34,086 Professional services — 7,349 — 7,349 — 22,919 — 22,919 Maintenance and subscriptions — 22,329 — 22,329 — 68,834 — 68,834 Fiery Digital front ends and related products — — 58,257 58,257 — — 167,713 167,713 Maintenance and subscriptions — — 3,523 3,523 — — 10,975 10,975 Total $ 154,902 $ 40,452 $ 61,780 $ 257,134 $ 453,545 $ 125,839 $ 178,688 $ 758,072 Timing of Revenue Recognition: Transferred at a Point in Time $ 149,521 $ 10,774 $ 58,257 $ 218,552 $ 437,780 $ 34,086 $ 167,713 $ 639,579 Transferred Over Time 5,381 29,678 3,523 38,582 15,765 91,753 10,975 118,493 Total $ 154,902 $ 40,452 $ 61,780 $ 257,134 $ 453,545 $ 125,839 $ 178,688 $ 758,072 Recurring/Non-Recurring: Non-Recurring $ 97,846 $ 18,123 $ 58,257 $ 174,226 $ 283,819 $ 57,005 $ 167,713 $ 508,537 Recurring 57,056 22,329 3,523 82,908 169,726 68,834 10,975 249,535 Total $ 154,902 $ 40,452 $ 61,780 $ 257,134 $ 453,545 $ 125,839 $ 178,688 $ 758,072 Remaining Performance Obligations Revenue allocated to remaining performance obligations includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods (“backlog”). Remaining performance obligations were $105.4 million as of September 30, 2018 , of which we expect to recognize substantially all of the revenue over the next 12 months . Contract Balances Timing of revenue recognition may differ from timing of invoicing to customers. Payment terms and conditions vary by contract. Deferred revenue (contract liability) represents amounts received in advance, or invoiced in advance, for product support contracts, software customer support contracts, consulting and integration projects, SaaS arrangements, or product sales. We defer these amounts when we collect or invoice the customer and then generally recognize revenue either ratably over the support contract term, upon performing the related services, under the cost-to-cost method, or in accordance with our revenue recognition policy. Revenue recognized during the three and nine months ended September 30, 2018 , which was included in deferred revenue as of December 31, 2017 , was $7.6 and $45.3 million , respectively. Unbilled accounts receivable represents contract assets for revenue that have been recognized in advance of billing the customer, which is common for long-term contracts. Billing requirements vary by contract but are generally structured around the completion of certain development milestones. Unbilled accounts receivable as of December 31, 2017 , that were transferred to accounts receivable during the three and nine months ended September 30, 2018 , were $2.7 and $24.6 million , respectively. The following table reflects the balances in unbilled accounts receivable and deferred revenue (in thousands): September 30, 2018 January 1, 2018 Unbilled accounts receivable – current $ 34,830 $ 23,296 Unbilled accounts receivable – noncurrent 3,483 4,122 Deferred revenue – current 65,181 55,738 Deferred revenue – noncurrent 349 565 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Financial Statement Information [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Supplemental Cash Flow Information Nine Months Ended September 30, (in thousands) 2018 2017 Net cash paid for income taxes $ 12,765 $ 15,724 Cash paid for interest expense 3,001 3,667 Property, equipment, and intellectual property received, but not paid 639 703 See also Note 10 – Commitments and Contingencies for information about the impact from the termination of our lease in Fremont, CA. Inventories Inventories are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Raw materials $ 52,085 $ 57,061 Work-in-process 13,584 9,792 Finished goods 55,621 58,960 Total $ 121,290 $ 125,813 Deferred Contract Acquisition Costs Certain of our sales incentive programs that meet the definition of an incremental cost of obtaining a customer contract are required to be capitalized under ASC 340-40. We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. Sales commissions for renewal of a contract may not be commensurate with the commissions paid for the acquisition of the initial contract because commissions are generally not paid on the renewal of a specifically anticipated contract. Sales commissions for initial contracts are deferred and then amortized generally on a straight-line basis over a period of benefit that we have determined to be three to four years . We determined the period of benefit by taking into consideration our customer contracts, our technology, and other factors. Upon adoption of ASC 340-40 on January 1, 2018, we capitalized $8.1 million in contract acquisition costs related to contracts that were not completed. For contracts that have durations of less than one year, we follow the practical expedient and expense these costs when incurred. During the three and nine months ended September 30, 2018 , we amortized $1.1 and $3.3 million of deferred contract acquisition costs, respectively, and we recognized no impairment losses in relation to costs capitalized. During the three and nine months ended September 30, 2018 , an additional $1.1 and $3.2 million of contract acquisition costs were capitalized, respectively. Deferred contract acquisition costs are included within other noncurrent assets in our Condensed Consolidated Balance Sheets. Deferred Cost of Revenue Deferred cost of revenue related to unrecognized revenue on shipments to customers was $1.3 and $3.5 million as of September 30, 2018 and December 31, 2017 , respectively, and is included in other current assets in our Condensed Consolidated Balance Sheets. Product Warranty Reserves Product warranty reserves are included in accrued and other liabilities on our Condensed Consolidated Balance Sheets. The changes in product warranty reserves are as follows (in thousands): Nine Months Ended September 30, 2018 2017 Beginning balance $ 16,335 $ 10,319 Liability assumed upon acquiring FFPS — 9,368 Provisions, net of releases 8,154 9,284 Settlements (11,245 ) (12,588 ) Ending balance $ 13,244 $ 16,383 Equipment Leased to Customers Under Operating Leases, Net Equipment leased to customers under operating leases was as follows (in thousands): September 30, 2018 December 31, 2017 Equipment leased to customers under operating leases $ 7,755 $ 5,432 Accumulated depreciation (3,297 ) (1,927 ) Equipment leased to customers under operating leases, net $ 4,458 $ 3,505 Scheduled minimum future rental revenue on operating leases as of September 30, 2018 was as follows (in thousands): Remainder of 2018 $ 729 2019 2,134 2020 2,590 2021 384 2022 432 Total $ 6,269 Accumulated Other Comprehensive Income (Loss) (“AOCI”) AOCI classified within stockholders’ equity on our Condensed Consolidated Balance Sheets was as follows (in thousands): September 30, 2018 December 31, 2017 Net unrealized investment losses $ (941 ) $ (697 ) Currency translation gains (losses) (6,055 ) 8,794 Net unrealized gain on cash flow hedges — 41 Total $ (6,996 ) $ 8,138 Amounts reclassified out of AOCI, net of tax, were immaterial for all periods presented, and consisted of unrealized gains and losses from investments in debt securities that are reported within interest income and other income, net, in our Condensed Consolidated Statements of Operations. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Financing Receivables Our financing receivables consist of sales-type lease and trade receivables that have an original contractual maturity in excess of one year. Sales-type lease receivables are included within other current assets and other assets, while trade receivables are included in accounts receivable (net of allowances) and other assets. Our financing receivables are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Sales-type lease receivables $ 30,196 $ 16,558 Trade receivables 11,814 12,125 Total financing receivables $ 42,010 $ 28,683 Scheduled to be received in excess of one year $ 23,727 $ 15,191 The credit quality of financing receivables is evaluated on the same basis as trade receivables. An allowance for estimated uncollectible amounts is provided as needed. Accounts Receivable Sales Arrangements Trade receivables are derecognized from our Condensed Consolidated Balance Sheets when sold to third parties upon determining that such receivables are presumptively beyond the reach of creditors in a bankruptcy proceeding. Any recourse obligation is measured using market data from similar transactions and the servicing liability is determined based on the fair value that a third party would charge to service these receivables. These liabilities were determined to not be material as of September 30, 2018 and December 31, 2017 . We have facilities in the U.S. that enable us to sell to third parties, on an ongoing basis, certain trade receivables with recourse. Trade receivables sold with recourse are generally short-term receivables with payment due dates of less than 10 days from the date of sale. Trade receivables sold under these facilities were $3.1 and $13.1 million during the three and nine months ended September 30, 2018 respectively, and $21.4 million during the year ended December 31, 2017 , which approximates the cash received. We have facilities in Europe that enable us to sell to third parties, on an ongoing basis, certain trade receivables without recourse. Trade receivables sold without recourse are generally short-term receivables secured by letters of credit with payment due dates of less than one year. Trade receivables sold under these facilities were $1.1 and $6.8 million during the three and nine months ended September 30, 2018 , respectively, and $5.9 million during the year ended December 31, 2017 , which approximates the cash received. We report collections from the sale of trade receivables to third parties as operating cash flows in the Condensed Consolidated Statements of Cash Flows. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We invest our excess cash on deposit with major banks in money market, United States (“U.S.”) Treasury and government-sponsored entity, corporate, municipal government, asset-backed, and mortgage-backed residential debt securities. By policy, we invest primarily in high-grade marketable securities. We are exposed to credit risk in the event of default by the financial institutions or issuers of these investments to the extent of the amounts recorded in our Condensed Consolidated Balance Sheets. We consider all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. Typically, the cost of these investments approximates fair value. Marketable investments with a maturity greater than three months are classified as available-for-sale short-term investments. Available-for-sale securities are stated at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. The credit portion of any other-than-temporary impairment is included in net income. Realized gains and losses on sales or maturities of financial instruments are recognized upon sale of the investments using the specific identification method. Our available-for-sale short-term investments are summarized as follows (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Fair value September 30, 2018 U.S. Government and sponsored entities $ 55,322 $ — $ (714 ) $ 54,608 Corporate debt securities 51,345 — (495 ) 50,850 Municipal securities 383 — (4 ) 379 Asset-backed securities 7,020 33 (61 ) 6,992 Mortgage-backed securities – residential 158 — (1 ) 157 Total short-term investments $ 114,228 $ 33 $ (1,275 ) $ 112,986 December 31, 2017 U.S. Government and sponsored entities $ 59,824 $ — $ (660 ) $ 59,164 Corporate debt securities 79,356 — (450 ) 78,906 Municipal securities 382 — (2 ) 380 Asset-backed securities 9,808 44 (47 ) 9,805 Mortgage-backed securities – residential 445 — (3 ) 442 Total short-term investments $ 149,815 $ 44 $ (1,162 ) $ 148,697 The fair value and duration that investments, including cash equivalents, have been in a gross unrealized loss position below are as follows (in thousands): Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2018 U.S. Government and sponsored entities $ — $ — $ 54,608 $ (714 ) $ 54,608 $ (714 ) Corporate debt securities 10,159 (90 ) 40,691 (405 ) 50,850 (495 ) Municipal securities 379 (4 ) — — 379 (4 ) Asset-backed securities — — 6,934 (61 ) 6,934 (61 ) Mortgage-backed securities – residential 18 — 86 (1 ) 104 (1 ) Total $ 10,556 $ (94 ) $ 102,319 $ (1,181 ) $ 112,875 $ (1,275 ) December 31, 2017 U.S. Government and sponsored entities $ 23,023 $ (206 ) $ 35,989 $ (454 ) $ 59,012 $ (660 ) Corporate debt securities 45,857 (207 ) 32,634 (243 ) 78,491 (450 ) Municipal securities 378 (2 ) — — 378 (2 ) Asset-backed securities 6,779 (31 ) 2,947 (16 ) 9,726 (47 ) Mortgage-backed securities – residential 162 (2 ) 142 (1 ) 304 (3 ) Total $ 76,199 $ (448 ) $ 71,712 $ (714 ) $ 147,911 $ (1,162 ) For fixed income securities that have unrealized losses as of September 30, 2018 , we do not have the intent to sell any of these investments and it is not more likely than not that we will be required to sell any of these investments before recovery of the entire amortized cost basis. We have evaluated these fixed income securities and determined that no credit losses exist. Accordingly, management has determined that the unrealized losses on our fixed income securities as of September 30, 2018 were temporary in nature. Amortized cost and estimated fair value of investments as of September 30, 2018 , are summarized as follows (in thousands): Amortized cost Fair value Mature in less than one year $ 75,459 $ 74,864 Mature in one to three years 38,769 38,122 Total short-term investments $ 114,228 $ 112,986 Net realized gains from sales of investments are recognized in interest income and other income, net, and were immaterial during the three and nine months ended September 30, 2018 , and September 30, 2017 , respectively. Net unrealized losses of $1.2 and $1.1 million were included in AOCI, net of tax effect, on the Condensed Consolidated Balance Sheets as of September 30, 2018 , and December 31, 2017 , respectively. Fair Value Measurements Our fair value hierarchy is defined as follows: Level 1: Inputs that are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; Level 2: Inputs that are other than quoted prices included within Level 1, that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date for the duration of the instrument’s anticipated life or by comparison to similar instruments; and Level 3: Inputs that are unobservable or reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. These include management’s own judgments about market participant assumptions developed based on the best information available in the circumstances. We utilize the market approach to measure the fair value of our fixed income securities. The market approach is a valuation technique that uses the prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The fair value of our fixed income securities is obtained using readily-available market prices from a variety of industry standard data providers, large financial institutions, and other third-party sources for the identical underlying securities. The fair value of our investments in certain money market funds is expected to maintain a net asset value of $1.00 per share and, as such, is priced at the expected market price. We obtain the fair value of our Level 2 financial instruments from several third-party asset managers, custodian banks, and accounting service providers. Independently, these service providers use professional pricing services to gather pricing data, which may include quoted market prices for identical or comparable instruments or inputs other than quoted prices that are observable either directly or indirectly. As part of this process, we engaged a pricing service to assist management in its pricing analysis and assessment of other-than-temporary impairment. All estimates, key assumptions, and forecasts were either provided by or reviewed by us. While we utilize a third-party pricing service, the impairment analysis and related valuations represent conclusions of management and not conclusions or statements of any third party. Our assets and liabilities measured at fair value by levels within the fair value hierarchy are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds $ 18,524 $ — $ — $ 18,524 $ 9,897 $ — $ — $ 9,897 U.S. Government and sponsored entities 33,279 21,328 — 54,607 33,261 25,903 — 59,164 Corporate debt securities — 50,850 — 50,850 — 78,906 — 78,906 Municipal securities — 379 — 379 — 380 — 380 Asset-backed securities — 6,934 59 6,993 — 9,754 51 9,805 Mortgage-backed securities – residential — 157 — 157 — 442 — 442 Total $ 51,803 $ 79,648 $ 59 $ 131,510 $ 43,158 $ 115,385 $ 51 $ 158,594 Liabilities: Contingent consideration, current and noncurrent $ — $ — $ 20,323 $ 20,323 $ — $ — $ 35,702 $ 35,702 Self-insurance — — 982 982 — — 902 902 Total $ — $ — $ 21,305 $ 21,305 $ — $ — $ 36,604 $ 36,604 Money market funds have been classified as cash equivalents as of September 30, 2018 , and December 31, 2017 , respectively. Investments are generally classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices or alternative pricing sources with reasonable levels of price transparency. Investments in U.S. Treasury obligations and overnight money market mutual funds have been classified as Level 1 because these securities are valued based on quoted prices in active markets or are actively traded at $1.00 net asset value. There have been no transfers between Level 1 and 2 during the nine months ended September 30, 2018 and 2017 . Government agency investments and corporate debt instruments, including investments in asset-backed and mortgage-backed securities, have generally been classified as Level 2 because markets for these securities are less active or valuations for such securities utilize significant inputs, which are directly or indirectly observable. We hold asset-backed securities with income payments derived from and collateralized by a specified pool of underlying assets. Asset-backed securities in the portfolio are predominantly collateralized by credit cards and auto loans. We also hold mortgage-backed securities which have been fully reserved. Liabilities for Contingent Consideration Acquisition-related liabilities for contingent consideration (i.e., earnouts) as of September 30, 2018 are related to the 2017 acquisitions of Escada Innovations Limited and Escada Systems, Inc. (collectively, “Escada”) and Generation Digital Solutions, Inc. (“Generation Digital”); the 2016 acquisitions of Optitex Ltd. (“Optitex”) and Rialco Limited (“Rialco”); the 2015 acquisitions of Shuttleworth Business Systems Limited and CDM Solutions Limited (collectively, “Shuttleworth”), and CTI; and the 2013 acquisition of PrintLeader Software (“PrintLeader”). The fair value of these earnouts is estimated to be $20.3 and $35.7 million as of September 30, 2018 , and December 31, 2017 , respectively, by applying the income approach in accordance with ASC 805-30-25-5. Key assumptions include risk-free discount rates between 0.6% and 5.0% , as well as probability-adjusted revenue, gross profit, and direct operating income using the Monte Carlo valuation method. Probability-adjusted revenue, gross profit, and direct operating income are significant inputs that are not observable in the market, and are therefore classified as Level 3 inputs. These contingent liabilities have been reflected in the Condensed Consolidated Balance Sheet as of September 30, 2018 , as current and noncurrent liabilities of $8.5 and $11.8 million, respectively. Changes in the fair value of contingent consideration are summarized as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Liability for Contingent Consideration Beginning balance $ 22,129 $ 61,414 $ 35,702 $ 56,463 Fair value of Generation Digital contingent consideration at August 14, 2017 — 3,600 — 3,600 Changes in valuation 721 75 (12,054 ) 974 Earnout accretion 91 336 194 1,213 Payments and settlements (2,611 ) (10,265 ) (3,361 ) (11,559 ) Foreign currency adjustment (7 ) (1,640 ) (158 ) 2,829 Ending balance $ 20,323 $ 53,520 $ 20,323 53,520 The Optitex, Generation Digital, and Shuttleworth earnout liability valuations decreased, on a combined basis, during the three and nine months ended September 30, 2018 by $1.5 and $14.3 million , respectively, based on recent actual and updated forecasted financial performance data. The Escada earnout liability valuation increased $2.2 million during the three and nine months ended September 30, 2018 . The Optitex, CTI, and Rialco earnout probabilities increased, while the Shuttleworth earnout performance probability decreased, during 2017. The earnout liability valuations increased during the three and nine months ended September 30, 2017 by $0.1 and $1.0 million , respectively. Changes in the fair value of contingent consideration subsequent to the acquisition date are reported in general and administrative expenses. Earnout payments and settlements during the three and nine months ended September 30, 2018 of $2.6 and $3.4 million were primarily related to the Rialco, Generation Digital, and Shuttleworth contingent consideration liabilities. Earnout payments and settlements during the three and nine months ended September 30, 2017 of $10.3 and $11.6 million , respectively, were related to the Reggiani, Optitex, Rialco, and Shuttleworth contingent consideration liabilities. The primary inputs to the fair value measurement of contingent consideration liability are the discount rate and probability-adjusted revenue or earnings targets specified in the acquisition agreements. Accordingly, we reviewed the sensitivity of the fair value measurement to changes in these inputs. We assessed the probability of achieving the revenue and profitability performance targets for contingent consideration associated with each acquisition at percentage levels between 50% and 100% as of each respective acquisition date based on an assessment of the historical performance of each acquired entity, our current expectations of future performance, and other relevant factors. A change in probability-adjusted revenue of five percentage points from the level assumed in the current valuations would result in an increase in the fair value of contingent consideration of $1.8 million or a decrease of $1.2 million . A change in the discount rate of one percentage point would result in an increase in the fair value of contingent consideration of $0.2 million or a decrease of $0.2 million . The potential undiscounted amount of contingent consideration that we could be required to pay related to our business acquisitions, assuming all remaining earnout payments were maximized, would be $11.4 million above amounts currently accrued as of September 30, 2018 . Fair Value of Derivative Instruments We utilize the income approach to measure the fair value of our derivative assets and liabilities. The income approach uses pricing models that rely on market observable inputs such as yield curves, currency exchange rates, and forward prices, and are therefore classified as Level 2 measurements. The notional amount of our derivative assets and liabilities was $209.9 and $239.4 million as of September 30, 2018 and December 31, 2017 , respectively. Fair Value of Convertible Senior Notes In September 2014, we issued $345 million aggregate principal amount of our Notes. The Notes are carried at their original issuance value, net of unamortized debt discount, and are not marked to market each period. The fair value of the Notes as of September 30, 2018 was approximately $340.7 million and was classified as a Level 2 fair value measurement. Fair value was estimated based upon actual quotations obtained at the end of the reporting period or the most recent date available. The market value of our Notes can be in excess of the outstanding principal amount due to the conversion premium. |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging We are exposed to market risk and foreign currency exchange risk from changes in foreign currency exchange rates, which could affect operating results, financial position, and cash flows. We manage our exposure to these risks through our regular operating and financing activities and, when appropriate, through use of derivative financial instruments. These derivative financial instruments are used to hedge monetary assets and liabilities, intercompany balances, trade receivables, anticipated cash flows, and to reduce earnings and cash flow volatility resulting from shifts in foreign currency exchange rates. Our objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting fair values of assets and liabilities. We do not have any leveraged derivatives, nor do we use derivative contracts for speculative purposes. We present the fair value of all open derivative instruments, including those embedded in other contracts, as assets or liabilities on our Condensed Consolidated Balance Sheets. The related cash flow impacts of our derivative contracts are reflected as cash flows from operating activities. Our exposures are primarily related to non-U.S. dollar-denominated revenue in Europe, the U.K., Latin America, China, Israel, and Australia, and to non-U.S. dollar-denominated operating expenses in Europe, India, the U.K., China, Israel, Brazil, and Australia. From time to time we have hedged our operating expense cash flow exposure in Indian rupees. We hedge balance sheet remeasurement exposure associated with British pound sterling, Canadian dollar, Chinese renminbi, Brazilian real, Israeli shekel, Japanese yen, and Euro-denominated intercompany balances; Brazilian real, British pound sterling, Australian dollar, Chinese renminbi, Israeli shekel, and Euro-denominated trade receivables; and British pound sterling, Israeli shekel, Canadian dollar, and Euro-denominated net monetary assets. By their nature, derivative instruments involve, to varying degrees, elements of market and credit risk. The market risk associated with these instruments resulting from currency exchange movement is expected to offset the market risk of the underlying transactions, assets, and liabilities being hedged. Under our master netting agreements with our foreign currency derivative counterparties, we are allowed to net transactions of the same currency with a single net amount payable by one party to the other. The derivatives held by us are not subject to any credit contingent features negotiated with these counterparties. We are not required to pledge cash collateral related to these foreign currency derivative contracts. We do not believe there is significant risk of loss from non-performance by the counterparty associated with these instruments because, by policy, we only deal with counterparties having a minimum investment grade or better credit rating. Credit risk is managed through the continuous monitoring of exposures to such counterparties. Cash Flow Hedges We did not have any foreign currency derivative contracts designated as cash flow hedges as of September 30, 2018 nor during the nine months ended September 30, 2018 . Our foreign currency derivative contracts designated as cash flow hedges for our Indian rupee operating expenses were in the notional amount of $3.9 million as of December 31, 2017 . The fair value of the net assets (liabilities) related to these cash flow hedges were not material. The changes in fair value of these contracts are reported as a component of AOCI and reclassified to operating expense in the periods of payment of the hedged operating expenses. The amount of ineffectiveness that was recorded in the Condensed Consolidated Statements of Operations for these designated cash flow hedges was immaterial. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. Balance Sheet Hedges Our forward contracts are not designated for hedge accounting treatment since there is a natural offset for the remeasurement of the underlying foreign currency denominated asset or liability. We recognize changes in the fair value of non-designated derivative instruments in earnings in the period of change. Gains and losses on foreign currency forward contracts used to hedge balance sheet exposures are recognized in interest income and other income, net, in the same period as the remeasurement gain or loss of the related foreign currency denominated assets and liabilities. Our forward contracts not designated for hedge accounting treatment consisted of hedges of Australian dollar, British pound sterling, Brazilian real, Canadian dollar, Chinese renminbi, Euro, Israeli shekel and Japanese yen. These balance sheet hedges cover currency exposures in the following line items in the notional amounts indicated (in thousands): Balance sheet categories September 30, 2018 December 31, 2017 Accounts Receivable $ 46,574 $ 44,427 Other assets and liabilities, net 38,185 46,550 Intercompany balances 125,189 144,477 Total $ 209,948 $ 235,454 |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes 0.75% Convertible Senior Notes Due 2019 In September 2014, we completed a private placement of $345 million principal amount of 0.75% Convertible Senior Notes due September 1, 2019 . The net proceeds from this offering were approximately $336.3 million , after deducting the initial purchasers’ commissions and the offering expenses paid by us. We used approximately $29.4 million of the net proceeds to purchase the Note Hedges described below, net of the proceeds from the Warrant transactions also described below. The Notes are senior unsecured obligations of EFI with interest payable semiannually in arrears on March 1 and September 1 of each year. The Notes are not callable and will mature on September 1, 2019, unless previously purchased or converted in accordance with their terms prior to such date. Holders of the Notes who convert in connection with a “fundamental change,” as defined in the indenture governing the Notes (“Indenture”), may require us to purchase for cash all or any portion of their Notes at a purchase price equal to 100 percent of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any. The initial conversion rate is 18.9667 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $52.72 per share of common stock. Upon conversion of the Notes, holders will receive cash, shares of common stock or a combination thereof, at our election. Our intent is to settle the principal amount of the Notes in cash upon conversion. If the conversion value exceeds the principal amount, we would deliver shares of our common stock for our conversion obligation in excess of the aggregate principal amount. As of September 30, 2018 , none of the conditions allowing holders of the Notes to convert had been met. We separated the Notes into liability and equity components. 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 method with an effective interest rate of 4.98% per annum ( 5.46% inclusive of debt issuance costs). The equity component is not remeasured if it continues to meet the conditions for equity classification. We allocated the total transaction costs incurred by the issuance of the Notes to the liability and equity components based on their relative values. Issuance costs of $7.0 million attributable to the $281.4 million liability component are being amortized to expense over the term of the Notes, and issuance costs of $1.6 million attributable to the $63.6 million equity component were offset against the equity component in stockholders’ equity. Additionally, we recorded a deferred tax liability of $23.7 million on the debt discount, which is not deductible for tax purposes. The Notes consisted of the following (in thousands): September 30, 2018 December 31, 2017 Liability component $ 345,000 $ 345,000 Debt discount, net of amortization (12,975 ) (23,178 ) Debt issuance costs, net of amortization (1,658 ) (2,865 ) Net carrying amount $ 330,367 $ 318,957 Equity component $ 63,643 $ 63,643 Less: debt issuance costs allocated to equity (1,582 ) (1,582 ) Net carrying amount $ 62,061 $ 62,061 Interest expense recognized on the Notes was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 0.75% coupon $ 647 $ 647 $ 1,948 $ 1,933 Amortization of debt discount 3,448 3,265 10,203 9,627 Amortization of debt issuance costs 407 388 1,207 1,144 Total $ 4,502 $ 4,300 $ 13,358 $ 12,704 Note Hedges We paid an aggregate of $63.9 million in convertible note hedge transactions with respect to our common stock (“Note Hedges”) in September 2014. The Note Hedges will expire upon maturity of the Notes. The Note Hedges are intended to offset the potential dilution upon conversion and/or offset any cash payments we are required to make in excess of the principal amount upon conversion of the Notes in the event that the market value per share of our common stock, as measured under the terms of the Note Hedges, is greater than the strike price of the Note Hedges. The strike price of the Note Hedges initially corresponded to the conversion price of the Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion price of the Notes. The Note Hedges are separate transactions and are not part of the Notes. Holders of the Notes will not have any rights with respect to the Note Hedges. Warrants Concurrently with entering into the Note Hedges, we separately sold Warrants to acquire shares of our common stock at a strike price of $68.86 per share (the "Warrants"). We received aggregate proceeds of $34.5 million from the sale of the Warrants. If the average market value per share of our common stock for the reporting period, as measured under the Warrants, exceeds the strike price of the Warrants, the Warrants will have a dilutive effect on our earnings per share. The Warrants are separate transactions and are not part of the Notes or the Note Hedges and are accounted for as a component of additional paid-in capital. Holders of the Notes and Note Hedges will not have any rights with respect to the Warrants. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingent Consideration We are required to make payments to the former stockholders of acquired companies based on the achievement of specified performance targets as explained in Note 7 – Fair Value Measurements . Lease Commitments and Contractual Obligations As of September 30, 2018 , we have leased certain of our current facilities and vehicles under noncancelable operating lease agreements. We are required to pay property taxes, insurance, and nominal maintenance costs for certain of these facilities and vehicles, and any increases over the base year of these expenses on the remainder of these leases. Lease Termination On July 27, 2018 , we executed an agreement (the “Termination Agreement”) to terminate the lease agreement dated April 19, 2013 between John Arrillaga Survivor’s Trust, represented by John Arrillaga, Trustee, and Richard T. Peery Separate Property Trust, represented by Richard T. Peery, Trustee and the Company, pursuant to which the Company had leased a portion of an approximately 108,000 square foot, two-story building located at 6700 Dumbarton Circle, Fremont, CA, adjacent to the Company’s headquarters. The Termination Agreement was effective July 31, 2018 . The Company moved its operations and personnel from the formerly leased facility into our headquarters building in July 2018. Prior to executing the Termination Agreement, the underlying lease had a remaining term of ten years and minimum noncancelable lease payments of $16.0 million . For accounting purposes, we were considered the owner of the building and had recorded the asset at a net book value of $13.7 million in property and equipment, net, on our Condensed Consolidated Balance Sheet prior to the termination. As of July 31, 2018 , we derecognized the lease asset and removed the corresponding liability of $14.5 million , which represented the present value of the lease obligation, from our Condensed Consolidated Balance Sheet. The Termination Agreement required us to pay total penalties of $0.8 million . The net loss from this lease termination of $0.1 million was charged to restructuring expense during the three months ended September 30, 2018. Assets Held for Sale During the fourth quarter of 2017, our management approved a plan to sell approximately 31.5 acres of land and two manufacturing buildings located at One Vutek Place and 189 Waukewan Street, Meredith, New Hampshire, consisting of 163,000 total square feet. These assets, which were previously recorded within property and equipment, net at a net book value of $5.1 million , were reclassified as assets held for sale upon the approval of the plan. We recognized an impairment charge of $0.9 million in the fourth quarter of 2017, and reported the assets at $4.2 million on our Condensed Consolidated Balance Sheet as of December 31, 2017. During the three months ended September 30, 2018 , we sold the 189 Waukewan Street land and building for net proceeds of $1.1 million and recognized a gain of $0.1 million . The One Vutek Place land and building remained in assets held for sale at a total value of $3.1 million as of September 30, 2018 on the Condensed Consolidated Balance Sheet and are actively being marketed. Off-Balance Sheet Financing – Lease Arrangements On August 26, 2016, we entered into a lease agreement with a lease term of 48.5 years , inclusive of two renewal options of 5.0 and 3.5 years , with the City of Manchester, NH to lease 16.9 acres adjacent to the Manchester Regional Airport. The land is subleased to MUFG Americas Capital Leasing & Finance, LLC (“MUFG”), formerly Bank of Tokyo – Mitsubishi UFJ Leasing & Finance LLC, during the term of the lease related to the manufacturing facility that was constructed on the site, which is described below. Minimum lease payments are $13.3 million during the entire 48.5 -year term of the land lease, excluding six months of the land lease that were financed into the manufacturing facility lease. On August 26, 2016, we entered into a six -year lease with MUFG whereby a 225,000 -square foot manufacturing and warehouse facility was constructed for our Industrial Inkjet operating segment at a cost of $39.8 million . Construction was completed in April 2018. Minimum lease payments during the initial six -year term are $1.8 million . Upon completion of the initial six -year term, we have the option to renew the lease, purchase the facility, or return the facility to MUFG subject to an 89% residual value guarantee under which we would recognize additional rent expense in the form of a variable rent payment. We have assessed our exposure in relation to the residual value guarantee and believe that there is no deficiency to the guaranteed value as of September 30, 2018 . During the construction period, we were required to maintain restricted cash equivalents or restricted investments equal to the amount expended to date on the construction of the building as collateral. The funds were deposited with a third-party trustee and were restricted during the construction period. Upon completion of construction, $39.8 million was deposited with MUFG and is restricted as collateral until the end of the underlying building lease period. Legal Proceedings From time to time, we are involved in a variety of claims, lawsuits, investigations, or proceedings relating to contractual disputes, securities laws, intellectual property rights, employment, or other matters that may arise in the normal course of business. We assess our potential liability in each of these matters by using the information available to us. We develop our views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and various combinations of appropriate litigation and settlement strategies. We accrue estimated losses from contingencies if a loss is deemed probable and can be reasonably estimated. As of September 30, 2018 , we are subject to the matters described below: Matan Digital Printing (“MDG”) Matter. EFI acquired Matan Digital Printers (“Matan”) in 2015 from sellers (the “2015 Sellers”) that had acquired Matan Digital Printing Ltd. from other sellers in 2001 (the “2001 Sellers”). The 2001 Sellers have asserted a claim against the 2015 Sellers and Matan asserting that they are entitled to a portion of the 2015 Sellers’ proceeds from EFI’s acquisition. The 2015 Sellers dispute this claim and have agreed to indemnify EFI against the 2001 Sellers’ claim. We do not believe that it is probable that we will incur a loss in the resolution of this matter. It is reasonably possible, however, that our financial statements could be materially affected by an unfavorable resolution and we could incur a material loss in this matter. We estimate the range of loss to be between one dollar and $10.1 million . If we incur a loss in this matter, it will be offset by a receivable of an equal amount representing a claim for indemnification against the escrow account established in connection with the Matan acquisition. Purported Class Action Lawsuit. On August 10, 2017, a putative class action was filed against the Company and its two named executive officers in the United States District Court for the District of New Jersey, captioned Pipitone v. Electronics For Imaging, Inc ., No. 2:17-cv-5992 (D.N.J.). A First Amended Complaint was filed on February 20, 2018. The plaintiffs allege, among other things, that statements by the Company and its officers about the Company’s financial reporting, revenue recognition, internal controls, and disclosure controls and procedures were false or misleading. The complaint seeks an unspecified amount of damages, interest, attorneys’ fees, and other costs, on behalf of a putative class of individuals and entities that purchased or otherwise acquired EFI securities from February 22, 2017 through August 3, 2017. EFI filed a motion to dismiss on April 23, 2018. The plaintiffs filed an opposition on May 23, 2018, and EFI filed its reply brief on June 13, 2018. A hearing on EFI’s motion to dismiss has not yet been scheduled. At this time, we do not believe it is probable that we will incur a material loss in this matter. However, it is reasonably possible that our financial statements could be materially affected by an unfavorable resolution of this matter. Since this matter is in the preliminary stages, we are not yet in a position to estimate the amount or range of reasonably possible loss that may be incurred. Purported Derivative Shareholder Lawsuits. On August 22, 2017, a purported derivative shareholder complaint was filed in the Superior Court of the State of California for the County of Alameda captioned Schiffmiller v. Gecht , No. RG17873197. A First Amended Complaint was filed on April 13, 2018. The complaint makes claims derivatively and on behalf of the Company as nominal defendant against the Company’s named executive officers and directors for alleged breaches of fiduciary duties and unjust enrichment, and alleges, among other things, that statements by the Company and its officers about the Company’s financial reporting, revenue recognition, internal controls, and disclosure controls and procedures were false or misleading. The complaint alleges the Company has suffered damage as a result of the individual defendants’ alleged actions, and seeks an unspecified amount of damages, restitution, and declaratory and other relief. The derivative action has been stayed pending the resolution of the Pipitone class action described above. At this time, we do not believe it is probable that we will incur a material loss in this matter. However, it is reasonably possible that our financial statements could be materially affected by an unfavorable resolution of this matter. Because this matter has been stayed pending resolution of the Pipitone class action described above, we are not yet in a position to estimate the amount or range of reasonably possible loss that may be incurred. Other Matters. As of September 30, 2018 , we were subject to various other claims, lawsuits, investigations, and proceedings in addition to the matters discussed above. There is at least a reasonable possibility that additional losses may be incurred in excess of the amounts that we have accrued. However, we believe that these claims are not material to our financial statements or the range of reasonably possible losses is not reasonably estimable. Litigation is inherently unpredictable, and while we believe that we have valid defenses with respect to legal matters pending against us, our financial statements could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies or because of the diversion of management’s attention and the incurrence of significant expenses. |
Stock Repurchase Program
Stock Repurchase Program | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Stock Repurchase Programs | Stock Repurchase Program On September 11, 2017, the board of directors approved the repurchase of an additional $125 million for our share repurchase program commencing September 11, 2017 and expiring on December 31, 2018 . The board of directors had previously authorized $150 million under the program in November 2015. Under this publicly announced program, we repurchased 1,614,166 and 1,019,544 shares for an aggregate purchase price of $50.5 and $47.0 million during the nine months ended September 30, 2018 and 2017 , respectively. As of September 30, 2018 , $58.9 million remained authorized for repurchases under this program. Our employees have the option to surrender shares of common stock to satisfy their tax withholding obligations that arise on the vesting of RSUs, the exercise price of certain stock options, and any tax withholding obligations incurred from exercise of stock options. Employees surrendered 63,107 and 233,159 shares at an aggregate value of $2.0 and $10.0 million during the nine months ended September 30, 2018 and 2017 , respectively. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation Stock-based compensation expense related to ESPP purchase rights and RSUs is summarized as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock-based compensation expense by type of awards RSUs $ 10,587 $ 3,545 $ 25,793 $ 18,875 ESPP purchase rights 1,336 1,103 4,685 3,666 Total stock-based compensation expense 11,923 4,648 30,478 22,541 Income tax benefit (1,747 ) (1,525 ) (4,437 ) (6,929 ) Stock-based compensation expense, net of tax $ 10,176 $ 3,123 $ 26,041 $ 15,612 Valuation Assumptions for ESPP Purchase Rights and Stock Options We use the Black-Scholes-Merton (“BSM”) option pricing model to value stock-based compensation for all equity awards, except market-based awards, which are valued using the Monte Carlo valuation model. We value RSUs at the closing market price on the date of grant. The estimated weighted average fair value per share and underlying assumptions of ESPP purchase rights issued were as follows: Nine Months Ended September 30, 2018 2017 Weighted average fair value per share $13.91 $12.09 Expected volatility 37 % — 80% 24 % — 28% Risk-free interest rate 2.2 % — 2.7% 0.7 % — 1.3% Expected term (in years) 0.5 — 2.0 0.5 — 2.0 No stock options were granted during the nine months ended September 30, 2018 and 2017 . As of September 30, 2018 , 100,000 shares underlying stock options are outstanding and exercisable. They are time-based options with an aggregate intrinsic value of $1.8 million , a weighted average exercise price of $16.00 per share, and remaining contractual term of 0.7 years . Aggregate intrinsic value for stock options represents the difference between the closing price per share of our common stock on the last trading day of the period and the option exercise price, multiplied by the number of in-the-money stock options outstanding, vested and expected to vest, and exercisable as of September 30, 2018 . Non-vested RSUs Non-vested RSUs were awarded to employees under our equity incentive plans. Non-vested RSUs do not have the voting rights of common stock and the shares underlying non-vested RSUs are not considered issued and outstanding. Non-vested RSUs generally vest over a service period of one to four years. The compensation expense incurred for these service-based awards is based on the closing market price of our stock on the date of grant and is amortized on a graded vesting basis over the requisite service period. Non-vested RSU activity during the nine months ended September 30, 2018 is summarized below (shares in thousands): Time-based Performance-based Market-based Total Shares Weighted average grant date fair value Shares Weighted average grant date fair value Shares Weighted average grant date fair value Shares Weighted average grant date fair value Non-vested at January 1, 2018 1,048 $ 35.76 1,209 $ 42.18 23 $ 35.15 2,280 $ 39.16 Granted 985 31.31 829 30.92 — — 1,814 31.13 Vested (287 ) 40.04 (20 ) 44.84 — — (307 ) 40.36 Forfeited (96 ) 34.90 (614 ) 44.65 — — (710 ) 43.33 Non-vested at September 30, 2018 1,650 32.41 1,404 34.42 23 35.15 3,077 33.35 Vested RSUs The grant date fair value of RSUs vested during the nine months ended September 30, 2018 was $12.4 million . The aggregate intrinsic value of RSUs vested and expected to vest as of September 30, 2018 was $57.7 million and the remaining weighted average vesting period was 1.08 years . Aggregate intrinsic value for RSUs vested and expected to vest represents the closing market price per share of our common stock on the last trading day of the period, multiplied by the number of RSUs vested and expected to vest as of September 30, 2018 . RSUs expected to vest represent time-based RSUs unvested and outstanding as of September 30, 2018 , and performance-based RSUs for which the requisite service period has not been rendered, but are expected to vest based on the achievement of performance conditions. Performance-based RSUs that vested based on certain financial results achieved are expensed in the period that the performance and related service criteria were met. Valuation Assumptions for Performance-based and Market-based RSUs Performance-based stock options, market-based RSUs, and market-based stock options were not granted during the nine months ended September 30, 2018 . We use the BSM option pricing model to value performance-based RSUs. The weighted average grant date fair value per share of performance-based RSUs granted and the assumptions used to estimate grant date fair value are as follows: Short-term Long-term Nine Months Ended September 30, 2018 Grant date fair value per share $ 28.26 $ 34.56 Service period (years) 1.0 3.0 Nine Months Ended September 30, 2017 Grant date fair value per share $ 47.23 $ 45.96 Service period (years) 1.0 2.0 – 3.0 Our performance-based RSUs generally vest when specified performance criteria are met based on bookings, revenue, cash provided by operating activities, non-GAAP operating income, non-GAAP earnings per share, revenue growth compared to market comparables, non-GAAP earnings per share growth compared to cash flow from operating activities growth, or other targets during the service period; otherwise, they are forfeited. Non-GAAP operating income is operating income determined in accordance with GAAP, adjusted to remove the impact of certain items and the related tax effects. Non-GAAP earnings per share is net income determined in accordance with GAAP, adjusted to remove the impact of certain items, and the related tax effects, divided by the weighted average number of common shares and dilutive potential common shares outstanding during the period. The grant date fair value per share determined in accordance with the BSM valuation model is being amortized over the service period of the performance-based awards. The probability of achieving the performance criteria was determined based on review of the actual results achieved thus far by each business unit compared with the operating plan during the service period as well as the overall expectations of the business unit. Stock-based compensation expense was adjusted based on the updated fair value resulting from this probability assessment. As actual results are achieved during the service period, the probability assessment is updated and stock-based compensation expense is adjusted accordingly. Market-based awards that were granted in prior periods vest when our average closing stock price exceeds defined multiples of the closing stock price for 90 consecutive trading days. If these multiples are not achieved by the expiration date, the awards are forfeited. The grant date fair value is amortized over the average derived service period of the awards. The average derived service period and total fair value were determined using a Monte Carlo valuation model based on our assumptions, which include a risk-free interest rate and implied volatility. |
Restructuring and Other
Restructuring and Other | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | Restructuring and Other During the nine months ended September 30, 2018 and 2017 , we continued to analyze and re-align our cost structure following our business acquisitions. These charges primarily relate to integrating recently acquired businesses, consolidating facilities, eliminating redundancies, and lowering our operating expense run rate. Restructuring and other consists primarily of restructuring, severance, short-term retention costs, facility downsizing and relocation, and acquisition integration expenses. Restructuring and other costs were $2.8 and $10.5 million during the three and nine months ended September 30, 2018 , respectively, and were $0.8 and $5.4 million during the three and nine months ended September 30, 2017 , respectively. Restructuring and other costs include severance charges of $1.6 and $5.9 million related to reductions in head count of 30 and 113 during the three and nine months ended September 30, 2018 , respectively; and $0.3 and $3.8 million related to reductions in head count of 15 and 128 during the three and nine months ended September 30, 2017 , respectively. Severance costs include severance payments, retention payments, related employee benefits, outplacement fees, recruiting, and employee relocation costs. Facilities relocation and downsizing expenses were $0.4 and $1.4 million during the three and nine months ended September 30, 2018 , respectively; and were $0.4 and $0.6 million during the three and nine months ended September 30, 2017 , respectively. These expenses were primarily related to the relocation of certain manufacturing and administrative locations due to reduced space requirements. Integration expenses of $0.9 and $3.2 million during the three and nine months ended September 30, 2018 , respectively, and $0.2 and $1.0 million during the three and nine months ended September 30, 2017 , respectively, were incurred for the integration of our business acquisitions. Restructuring and other reserve activities are summarized as follows (in thousands): Nine Months Ended September 30, 2018 2017 Beginning reserve balance $ 2,452 $ 1,824 Restructuring charges 6,289 4,101 Other charges 4,188 1,321 Non-cash restructuring and other (686 ) (182 ) Payments (9,751 ) (4,720 ) Ending reserve balance $ 2,492 $ 2,344 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recognized tax benefit s of $4.3 and $1.9 million on pretax loss of $2.3 and pretax income of $0.2 million during the three and nine months ended September 30, 2018 , respectively; and tax provision s of $0.8 and $0.8 million on pretax net income of $4.2 and $11.8 million during the three and nine months ended September 30, 2017 , respectively. The benefit from (provision for) income taxes before discrete items reflected in the table below was a benefit of $0.9 and a provision of $0.1 million during the three and nine months ended September 30, 2018 , respectively, and provisions of $2.0 and $4.5 million during the three and nine months ended September 30, 2017 , respectively. The decrease in the provision for income taxes before discrete items for the three and nine months ended September 30, 2018 , compared with the same periods in the prior year, was primarily due to decreased profitability before income taxes. Primary differences between our provision for income taxes before discrete items and the income tax provision at the U.S. statutory rate include taxes on permanently reinvested foreign earnings, the tax effects of stock-based compensation expense which are non-deductible for tax purposes, and the U.S. Research and Development Credit. Our tax benefit from (provision for) income taxes before discrete items is reconciled to our recorded benefit from (provision for) income taxes, as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Benefit from (provision for) income taxes before discrete items $ 932 $ (1,973 ) $ (105 ) $ (4,517 ) Interest related to unrecognized tax benefits 71 — (154 ) (121 ) Benefit from (provision for) stock-based compensation, including ESPP dispositions 112 (363 ) 86 1,934 Benefit from reversals of uncertain tax positions 2,333 1,845 2,528 1,825 Benefit from (provision for) reassessment of taxes upon filing tax returns 135 (300 ) 213 (396 ) Benefit from (provision for) reassessment of taxes upon tax law change — — (160 ) 480 Benefit from (provision for) deemed repatriation transition tax 682 — (540 ) — Benefit from (provision for) income taxes $ 4,265 $ (791 ) $ 1,868 $ (795 ) On December 22, 2017, the 2017 Tax Act was enacted by the U.S. government. The 2017 Tax Act made broad and complex changes to the U.S. tax code that impact the nine months ended September 30, 2018 and year ended December 31, 2017 , including, but not limited to, lowering the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, imposing a one-time deemed repatriation transition tax, and the remeasurement of U.S. deferred tax assets and liabilities. The SEC issued SAB 118, which allows us to record a provisional estimate of the income tax effects of the 2017 Tax Act in the period in which we can make a reasonable estimate of its effects. We recorded a $27.5 million tax charge in the year ended December 31, 2017 as a provisional estimate. This provisional estimate included an estimated charge of $17.0 million related to the deemed repatriation transition tax, which is comprised of a gross transition tax of $27.0 million offset by foreign tax credits of $10.0 million . In addition, we recorded a $10.5 million charge related to the remeasurement of U.S. deferred tax assets and liabilities in the year ended December 31, 2017 . While we have calculated a reasonable estimate of the impact of the U.S. tax rate reduction and the amount of the deemed repatriation transition tax, we are gathering additional information to refine and finalize our calculation of the impacts of the 2017 Tax Act on our U.S. deferred tax assets and liabilities, the deemed repatriation transition tax, and other provisions associated with the 2017 Tax Act. As an adjustment to our December 2017 provisional estimate, we recorded a benefit of $0.7 million and a provision of $0.5 million for federal and state taxes related to the deemed repatriation transition tax during the three and nine months ended September 30, 2018 , respectively. As we obtain additional information, we will finalize the calculation of the income tax effects of the 2017 Tax Act in the fourth quarter of 2018. The 2017 Tax Act also created a global intangible low-tax income (“GILTI”) provision, which is a minimum tax on certain foreign earnings, commencing in the year ending December 31, 2018. The amount of future U.S. inclusions in taxable income related to GILTI depends on our current structure, estimated future results of global operations, and our intent and ability to modify our structure and/or our business. We are not yet able to provide a reasonable estimate of the effect of this provision of the 2017 Tax Act. Therefore, we have not made any adjustments related to the potential GILTI tax in our financial statements and have not made a policy decision regarding whether to record deferred taxes associated with GILTI. Any subsequent adjustment to the deferred tax amounts related to GILTI (or other computations) will be recorded as a tax expense in the fourth quarter of 2018 when our analysis is complete. As of September 30, 2018 , and December 31, 2017 , gross unrecognized benefits that would impact the effective tax rate if recognized were $30.8 and $33.9 million , respectively. Over the next twelve months, our existing tax positions will continue to generate increased liabilities for unrecognized tax benefits. It is reasonably possible that our gross unrecognized tax benefits will decrease up to $6.9 million in the next twelve months. These adjustments, if recognized, would positively impact our effective tax rate, and would be recognized as additional tax benefits in our Condensed Consolidated Statements of Operations. $15.5 million of gross unrecognized tax benefits were offset against deferred tax assets as of September 30, 2018 , and the remaining $15.3 million has been recorded as noncurrent income taxes payable. We are open to assessment by the Internal Revenue Service (“IRS”) for the 2015-2017 tax years, state tax jurisdictions for the 2013-2017 tax years, the Netherlands tax authority for the 2014-2016 tax years, the Spanish tax authority for the 2014-2017 tax years, the Israel tax authority for the 2014-2016 tax years, and the Italian tax authority for the 2013-2016 tax years. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements (“condensed consolidated financial statements”) include the accounts of Electronics For Imaging, Inc. and its subsidiaries (“EFI” or “Company”). All intercompany accounts and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information, rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements, and accounting policies consistent in all material respects with those applied in preparing our audited annual consolidated financial statements included in our Annual Report on Form 10-K, as amended by Amendment No. 1, for the year ended December 31, 2017 (the “2017 Form 10-K”). These condensed consolidated financial statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and notes included in the 2017 Form 10-K. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments, management considers necessary for the fair presentation of our financial position, operating results, comprehensive income, and cash flows for the interim periods presented. Our results for the interim periods are not necessarily indicative of results for the entire year. Out-of-Period Adjustments In the nine months ended September 30, 2017, we recorded out-of-period adjustments related to certain bill and hold transactions, which decreased revenue by $3.4 million , gross profit by $0.5 million , and net income by $0.3 million (or $0.01 per diluted share). We evaluated these adjustments considering both qualitative and quantitative factors and their impact in relation to each period, as well as the periods in which they originated. The impact of recognizing these adjustments in prior years was not significant to any individual period. Management believes the adjustments are immaterial to these condensed consolidated financial statements for the nine months ended September 30, 2017 and all previously issued financial statements. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements Revenue Recognition . Effective January 1, 2018, we adopted Accounting Standards Codification (“ASC”) 606 Revenue from Contracts with Customers (“ASC 606”) using the modified retrospective method applied to all incomplete contracts as of the date of initial application. ASC 606 supersedes the revenue recognition requirements in ASC 605, Revenue Recognition (“ASC 605”), and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. In addition, ASC 606 requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Effective January 1, 2018, we also adopted ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers (“ASC 340-40”), using the modified retrospective method to all incomplete contracts as of the date of initial application. ASC 340-40 requires the deferral of incremental costs of obtaining a contract with a customer. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 and ASC 340-40, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. Additional discussion of these recently adopted pronouncements and their impact on our Condensed Consolidated Financial Statements is included below under Significant Accounting Policies, in Note 4 – Revenue , and in Note 5 – Supplemental Financial Statement Information . Income Taxes . Staff Accounting Bulletin (“SAB”) 118 provides guidance for the application of ASC 740 for a measurement period to complete the accounting for certain elements of the Tax Cut & Jobs Act of 2017 (the “2017 Tax Act”). The measurement period is defined as up to one year from the enactment date, which will expire on December 22, 2018. SAB 118 requires that we recognize those income tax effects in our financial statements for which the accounting can be completed, as may be the case for the effect of rate changes on deferred tax assets and deferred tax liabilities. For matters that have not been completed, we are required to recognize provisional amounts to the extent that they are reasonably estimable, adjust them during the measurement period when more information becomes available, and report this information in our financial statements in that period. See additional information in Note 14 – Income Taxes. Restricted Cash . Accounting Standard Update (“ASU”) 2016-18, Statement of Cash Flows: Restricted Cash , became effective in the first quarter of 2018 and requires the statement of cash flows to explain the change in cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts in the statement of cash flows. We previously included the changes in restricted cash equivalents in operating or investing activities in the Consolidated Statements of Cash Flows. Prior period amounts have been revised to conform to the current year presentation. Reconciliation of cash, cash equivalents, and restricted cash equivalents (in thousands) September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Cash and cash equivalents $ 180,942 $ 170,345 $ 175,830 $ 164,313 Restricted cash equivalents 39,809 32,531 6,826 1,142 Total cash, cash equivalents, and restricted cash equivalents shown in the statement of cash flows $ 220,751 $ 202,876 $ 182,656 $ 165,455 Definition of a Business . In January 2017, the Financial Accounting Standard Board (“FASB’) issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business , which became effective in the first quarter of 2018 and significantly narrows how businesses are defined. Under ASU 2017-01, when substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar identifiable assets, then the assets acquired do not constitute a business. If substantially all of the fair value of the gross assets acquired is not concentrated in a single asset or group of similar assets, then the assets acquired may constitute a business if certain criteria are met. We must determine whether the acquired gross assets and activities include an input and a “substantive” process that together “significantly” contribute to the ability to create an output. A framework and specific criteria are provided to assist with the evaluation of whether a process is “substantive” and “significantly contributes” to the ability to create an output. “Output” is narrowly defined to be consistent with the description of a performance obligation in the new revenue guidance or this ASU. Missing inputs and processes may not be replaced by integration with our own inputs and processes under the new guidance. The adoption of ASU 2017-1 did not impact our condensed consolidated financial statements as of September 30, 2018 because we did not acquire a business during the nine months ended September 30, 2018 . Nonfinancial Asset Derecognition . In February 2017, the FASB issued ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets: Clarifying the Scope of Asset Derecognition and Accounting for Partial Sales of Nonfinancial Assets , which clarifies the scope of recent guidance as it relates to nonfinancial asset derecognition and the accounting for partial sales of nonfinancial assets. The ASU conforms the derecognition guidance as it relates to nonfinancial assets with the derecognition guidance in the new revenue standard (ASC 606) and is not expected to have a material impact on the accounting for real estate dispositions. ASU 2017-5 became effective in the first quarter of 2018. During the nine months ended September 30, 2018 , we sold a non-financial asset, which is discussed further in Note 10 – Commitments and Contingencies . There was no material impact from the adoption of this ASU in our condensed consolidated financial statements during the three and nine months ended September 30, 2018 . Stock Compensation Modification . In May 2017, the FASB issued ASU 2017-09, Stock Compensation – Scope of Modification Accounting , which clarifies the scope of modification accounting for share-based payment arrangements, which became effective in the first quarter of 2018. Specifically, we do not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. We elected to adopt this guidance prospectively to awards modified on or after the adoption date. The adoption of ASU 2017-09 did not have a material impact on our condensed consolidated financial statements during the three and nine months ended September 30, 2018 . Settlement of Convertible Debt . ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , issued in August 2016, requires that cash settlements of principal amounts of debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the debt must classify the portion of the principal payment attributable to the accreted interest related to the debt discount as cash outflows from operating activities. This is consistent with the classification of the coupon interest payments. ASU 2016-15 became effective in the first quarter of 2018. Accordingly, $63.6 million of the debt discount attributable to the difference between the 0.75% coupon interest rate on our 0.75% Convertible Senior Notes due 2019 (“Notes”) and the 4.98% ( 5.46% inclusive of debt issuance costs) effective interest rate on the Notes will be classified as an operating cash outflow in the Condensed Consolidated Statement of Cash Flows upon any cash settlement of the Notes. The Notes were not settled as of September 30, 2018 . We will apply ASU 2016-15 upon any cash settlement of the Notes. Recent Accounting Pronouncements Not Yet Adopted Lease Arrangements . Under current guidance, the classification of a lease by a lessee as either an operating or capital lease determines whether an asset and liability is recognized on the balance sheet. ASU 2016-2, Leases , which was issued in February 2016 and will be effective in the first quarter of 2019, requires that a lessee recognize an asset and liability on its balance sheet related to all leases with terms more than one year. For all leases, a lessee will be required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position. The right-to-use asset represents the right to use the underlying asset during the lease term. The recognition, measurement, and presentation of expenses and cash flows by a lessee will not significantly change from previous guidance. There continues to be a differentiation between finance leases and operating leases. The criteria for determining whether a lease is a finance or operating lease are substantially the same as existing guidance except that the “bright line” percentages have been removed. Also, an additional criterion has been added in the new guidance to consider whether the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Additional judgment will be required in applying the new lease guidance. • For finance leases, interest is recognized on the lease liability separately from depreciation of the right-of-use asset in the statement of operations. Principal repayments are classified within financing activities and interest payments are classified as operating activities in the statement of cash flows. • For operating leases, a lessee is required to recognize lease expense generally on a straight-line basis. All operating lease payments are classified as operating activities in the statement of cash flows. The current build-to-suit lease accounting guidance will be rescinded by the new guidance, although simplified guidance will remain regarding lessee control during the construction period. Consequently, the accounting for build-to-suit leases will be the same as operating leases unless the lessee control provisions are applicable. We expect to apply the additional transition method provided in ASU 2018-11, which allows us to initially apply the new leases standard at our January 1, 2019 adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. We expect to elect all of the available transition practical expedients which permit us not to reassess our prior conclusions about lease identification, lease classification, and initial direct costs. While we continue to assess the effects of the adoption, we have not yet quantified the impact but we believe there will be material increases in our non-current assets and liabilities, and in our current liabilities on our Consolidated Balance Sheets at the time of adoption. The adoption of this new standard to our lease transactions as lessee is not expected to have a material impact on our results of operations as reflected in our Consolidated Statements of Operations. We do not expect a material impact on our results of operations or financial position from adoption of this standard to our lease transactions as lessor. |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted ASC 606 using the modified retrospective method applied to contracts that were not completed as of January 1, 2018. On January 1, 2018, we also adopted ASC 340-40 using the modified retrospective method applied to all contracts as of the date of initial application. We apply judgment in determining the customer’s ability and intention to pay. Judgments are made after considering a variety of factors including the customer’s historical payment experience, current creditworthiness, current economic impacts on the customer, past due balances, and significant one-time events or, in the case of a new customer, published credit and financial information. For customer arrangements that include multiple products or services, judgment is required to determine the standalone selling price (“SSP”) for each distinct performance obligation. Where an observable price is not available, we gather all reasonable available data points, consider adjustments based on market conditions, entity-specific factors, and the need to stratify selling prices into meaningful groups (e.g., geographic region) in determining SSP. We allocate the total contract consideration to each distinct performance obligation on a relative SSP basis. Revenue is then recognized in accordance with the timing of the transfer of control of each performance obligation to the customer. Accounting for long-term contracts where we provide information technology system development and implementation services requires significant judgment to estimate total contract revenue and costs. For long-term contracts, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete the services. We then recognize that revenue and profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that could span several years. A change in our estimate of total costs to complete could affect the profitability of our contracts. We review and update our contract-related estimates regularly, and the effects of changes, if any, are reflected in the Condensed Consolidated Statements of Operations in the period that they are determined. Changes in estimates related to certain types of contracts accounted for using an input method measure of progress, such as cost-to-cost, can occur over the life of a contract for a variety of reasons, including the availability of labor and labor productivity, the nature and complexity of the work to be performed, cost estimates, level of effort and/or other assumptions impacting revenue or cost to perform a contract. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If, at any time, the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the quarter it is identified. Management exercises judgment to determine the period of benefit to amortize contract acquisition costs by considering factors such as expected renewals of customer contracts, duration of customer relationships and our technology development life cycle. Although we believe that the historical assumptions and estimates we have made are reasonable and appropriate, different assumptions and estimates could materially impact our reported financial results. Amortization of deferred contract acquisition costs is included in sales and marketing expense in the Condensed Consolidated Statements of Operations. We periodically review these deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred contract acquisition costs. The nature of our products and services are as follows: Hardware . Our hardware, such as Industrial Inkjet printers and Fiery digital front ends (“DFEs”), is generally sold with software that is integral to the functionality of the product. In these cases, the hardware and software license are accounted for as a single performance obligation. The contract consideration is generally in the form of a fixed fee at contract inception and revenue is recognized at the point in time when control is transferred to the customer. Consideration received from customers may include trade-in printers, which are valued at the lower of cost or net realizable value. We offer shipping and handling services to customers related to the sale of hardware. We have elected the practical expedient to account for shipping and handling activities performed after transferring control of goods to our customer as a cost to fulfill the contract. The cost of shipping and handling is accrued at the point in which control transfers to the customer and revenue is recognized. Ink . We typically enter into contracts with our existing customer base of installed printers to purchase ink that is not bundled with other deliverables within the contract. The ink is accounted for as a single performance obligation and revenue is recognized at the point in time when control of the ink is transferred to the customer. Licenses . Our software license arrangements provide the customer with the right to install and use functional intellectual property (as it exists at the point in time at which the license is granted) for the duration of the contract term. Revenue from distinct software licenses is recognized at the point in time when the software is made available to the customer for download. Our software license arrangements are generally comprised of fixed license fees (“license fees”) that are payable upfront, annually, quarterly, or monthly based on negotiated customer payment terms. For software license arrangements in which a significant portion of the license fees are due more than 12 months after the software is delivered to the customer, a significant financing component may exist. The significant financing component is calculated as the difference between the stated value and present value of the software license fees and is recognized as interest income under the effective interest method over the contract term. The total software license fee net of the significant financing component is recognized as revenue at the point in time when the software is made available to the customer for download or when the software is shipped to the customer. In instances where the timing of revenue recognition and the timing of invoicing is one year or less, we follow the practical expedient and do not impute interest for these contracts. Maintenance . Our software license arrangements typically include an initial (bundled) post contract customer support (maintenance or “PCS”) term. Our promise to those customers who elect to purchase PCS represents a distinct, stand-alone performance obligation. Contract consideration is allocated to the PCS based on its relative SSP and revenue is recognized over the PCS term. Professional Services . We provide various professional services to customers, primarily project management, software implementation, non-recurring engineering design, and training. Revenues from arrangements to provide professional services are generally distinct from the other promises in the contract(s). The majority of our professional services contracts are billed on a time and materials basis and revenue is recognized over time as the services are performed. Software as a Service (“SaaS”) . Our SaaS-based arrangements provide customers with continuous access to our software solutions in the form of a service hosted in the cloud. These arrangements may include initial implementation and setup and/or on-going support that represent a single promise (i.e. each individual promised component is not distinct) to provide continuous access to the software solution. Any setup fees associated with our SaaS arrangements are recognized ratably over the contract term plus expected renewal periods. As the customer simultaneously receives and consumes the benefits as access is provided, our performance obligation under our SaaS-based arrangements is comprised of a series of distinct components delivered over time. Our SaaS-based arrangements consideration is typically fixed. Extended Service Plans (“ESP”) . For our hardware arrangements, we enter into contracts with certain customers to provide services to maintain and repair the hardware for an extended period. ESPs are classified as service-type warranties under ASC 606 as they are sold separately and provide services which are incremental to the assurance that the product will perform to the agreed upon standards. The ESPs are accounted for as a separate performance obligation. Revenue from ESPs are recognized ratably over the contract period as the service is provided. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, cash equivalents, and restricted cash equivalents | Reconciliation of cash, cash equivalents, and restricted cash equivalents (in thousands) September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Cash and cash equivalents $ 180,942 $ 170,345 $ 175,830 $ 164,313 Restricted cash equivalents 39,809 32,531 6,826 1,142 Total cash, cash equivalents, and restricted cash equivalents shown in the statement of cash flows $ 220,751 $ 202,876 $ 182,656 $ 165,455 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share are reconciled as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Basic net income per share: Net income available to common shareholders $ 1,920 $ 3,454 $ 2,093 $ 11,000 Weighted average common shares outstanding 44,428 46,348 44,714 46,442 Basic net income per share $ 0.04 $ 0.07 $ 0.05 $ 0.24 Diluted net income per share: Net income available to common shareholders $ 1,920 $ 3,454 $ 2,093 $ 11,000 Weighted average common shares outstanding 44,428 46,348 44,714 46,442 Dilutive stock options and non-vested RSUs and PSUs 926 589 674 660 Weighted average common shares outstanding for purposes of computing diluted net income per share 45,354 46,937 45,388 47,102 Diluted net income per share $ 0.04 $ 0.07 $ 0.05 $ 0.23 |
Summary of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | Potential shares of common stock that were not included in the determination of diluted net income per share because the impact of including them would have been anti-dilutive or performance conditions have not been met, consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 RSUs & PSUs 626 327 554 304 ESPP purchase rights 41 410 638 342 Total potential shares of common stock excluded from the computation of diluted earnings per share 667 737 1,192 646 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of Revenue and Operating Segment Profit (Gross Profit), Excluding Stock-Based Compensation Expense by Segment | Our revenue and gross profit (i.e., gross profit excluding stock-based compensation expense) by operating segment are summarized as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Industrial Inkjet Revenue $ 154,902 $ 142,930 $ 453,545 $ 407,886 Gross profit 53,661 53,392 158,351 154,972 Gross profit percentages 34.6 % 37.4 % 34.9 % 38.0 % Productivity Software Revenue $ 40,452 $ 37,171 $ 125,839 $ 111,292 Gross profit 28,394 26,667 88,988 81,431 Gross profit percentages 70.2 % 71.7 % 70.7 % 73.2 % Fiery Revenue $ 61,780 $ 68,258 $ 178,688 $ 204,919 Gross profit 44,368 47,884 128,590 143,821 Gross profit percentages 71.8 % 70.2 % 72.0 % 70.2 % |
Reconciliation of Operating Segment Gross Profit to Condensed Consolidated Statements of Operations | Operating segment profit is reconciled to our Condensed Consolidated Statements of Operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Segment gross profit $ 126,423 $ 127,943 $ 375,929 $ 380,224 Stock-based compensation expense (904 ) (486 ) (2,715 ) (1,985 ) Gross profit $ 125,519 $ 127,457 $ 373,214 $ 378,239 |
Tangible and Intangible Assets, Net of Liabilities, Summarized by Operating Segment | Tangible and intangible assets, net of liabilities, are summarized by operating segment as follows (in thousands): Industrial Inkjet Productivity Software Fiery Corporate and Unallocated Net Assets Total September 30, 2018 Goodwill $ 150,197 $ 170,098 $ 74,077 $ — $ 394,372 Identified intangible assets, net 45,688 24,903 15,655 — 86,246 Tangible assets, net of liabilities 251,948 (26,192 ) 25,738 28,154 279,648 Net tangible and intangible assets $ 447,833 $ 168,809 $ 115,470 $ 28,154 $ 760,266 December 31, 2017 Goodwill $ 154,373 $ 174,644 $ 74,261 $ — $ 403,278 Identified intangible assets, net 66,547 36,379 20,082 — 123,008 Tangible assets, net of liabilities 221,933 (27,755 ) 11,286 49,561 255,025 Net tangible and intangible assets $ 442,853 $ 183,268 $ 105,629 $ 49,561 $ 781,311 |
Revenue by Ship-to Destination | We report revenue by geographic region based on ship-to destination which is summarized as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Americas $ 134,491 $ 129,488 $ 374,170 $ 353,397 Europe, Middle East, and Africa (“EMEA”) 88,879 85,089 271,064 274,635 Asia Pacific (“APAC”) 33,764 33,782 112,838 96,065 Total revenue $ 257,134 $ 248,359 $ 758,072 $ 724,097 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of applying ASC 606 and ASC 340-40 to active contracts as of the adoption date resulted in the following adjustments to the Condensed Consolidated Balance Sheet as of January 1, 2018 (in thousands): Reported as of ASC 606 Adjustments As Adjusted Assets Accounts receivable, net $ 244,416 $ 102 $ 244,518 Other current assets 41,799 (1,628 ) 40,171 Deferred tax assets 45,083 (1,466 ) 43,617 Other assets 15,504 8,062 23,566 Liabilities Deferred revenue 55,833 (95 ) 55,738 Noncurrent contingent and other liabilities 28,801 491 29,292 Stockholders’ equity: Retained earnings 402,544 4,674 407,218 The impact of adopting ASC 606 and ASC 340-40 on our Condensed Consolidated Statement of Operations is summarized as follows (in thousands): Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Amounts in Amounts in Effect of change Amounts in Accordance with ASC 606 Amounts in Accordance with ASC 605 Effect of change higher (lower) Revenue $ 257,134 $ 255,746 $ 1,388 $ 758,072 $ 754,348 $ 3,724 Cost of revenue 131,615 131,067 548 384,858 384,509 349 Gross profit 125,519 124,679 840 373,214 369,839 3,375 Operating expenses 123,404 123,316 88 359,520 359,418 102 Income from operations 2,115 1,363 752 13,694 10,421 3,273 Interest income and other income, net 336 199 137 1,270 823 447 Income (loss) before income taxes (2,345 ) (3,234 ) 889 225 (3,495 ) 3,720 Benefits from income taxes 4,265 4,465 (200 ) 1,868 2,363 (495 ) Net income (loss) 1,920 1,231 689 2,093 (1,132 ) 3,225 The impact of adopting ASC 606 and ASC 340-40 on our Condensed Consolidated Balance Sheet as of September 30, 2018 was as follows (in thousands): Amounts in Accordance with ASC 606 Amounts in Accordance with ASC 605 Effect of change higher (lower) Assets Accounts receivable, net $ 240,150 $ 236,018 $ 4,132 Other current assets 47,814 49,790 (1,976 ) Deferred tax assets 43,265 45,226 (1,961 ) Other assets 34,369 26,409 7,960 Liabilities Deferred revenue 65,181 65,239 (58 ) Noncurrent contingent and other liabilities 17,307 16,993 314 Stockholders’ equity Retained earnings 409,311 401,412 7,899 |
Summary of Disaggregated Revenue by Source | The following table presents our disaggregated revenue by source (in thousands). Sales and usage-based taxes are excluded from revenue: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Industrial Productivity Fiery Total Industrial Inkjet Productivity Software Fiery Total Major Products and Service Lines: Industrial Inkjet Printers and parts $ 97,846 $ — $ — $ 97,846 $ 283,819 $ — $ — $ 283,819 Ink, supplies, and maintenance 57,056 — — 57,056 169,726 — — 169,726 Productivity Software Licenses — 10,774 — 10,774 — 34,086 — 34,086 Professional services — 7,349 — 7,349 — 22,919 — 22,919 Maintenance and subscriptions — 22,329 — 22,329 — 68,834 — 68,834 Fiery Digital front ends and related products — — 58,257 58,257 — — 167,713 167,713 Maintenance and subscriptions — — 3,523 3,523 — — 10,975 10,975 Total $ 154,902 $ 40,452 $ 61,780 $ 257,134 $ 453,545 $ 125,839 $ 178,688 $ 758,072 Timing of Revenue Recognition: Transferred at a Point in Time $ 149,521 $ 10,774 $ 58,257 $ 218,552 $ 437,780 $ 34,086 $ 167,713 $ 639,579 Transferred Over Time 5,381 29,678 3,523 38,582 15,765 91,753 10,975 118,493 Total $ 154,902 $ 40,452 $ 61,780 $ 257,134 $ 453,545 $ 125,839 $ 178,688 $ 758,072 Recurring/Non-Recurring: Non-Recurring $ 97,846 $ 18,123 $ 58,257 $ 174,226 $ 283,819 $ 57,005 $ 167,713 $ 508,537 Recurring 57,056 22,329 3,523 82,908 169,726 68,834 10,975 249,535 Total $ 154,902 $ 40,452 $ 61,780 $ 257,134 $ 453,545 $ 125,839 $ 178,688 $ 758,072 |
Summary of Unbilled Accounts Receivable and Deferred Revenue | The following table reflects the balances in unbilled accounts receivable and deferred revenue (in thousands): September 30, 2018 January 1, 2018 Unbilled accounts receivable – current $ 34,830 $ 23,296 Unbilled accounts receivable – noncurrent 3,483 4,122 Deferred revenue – current 65,181 55,738 Deferred revenue – noncurrent 349 565 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information Details (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Financial Statement Information [Abstract] | |
Summary of Supplemental Cash Flow Information | Supplemental Cash Flow Information Nine Months Ended September 30, (in thousands) 2018 2017 Net cash paid for income taxes $ 12,765 $ 15,724 Cash paid for interest expense 3,001 3,667 Property, equipment, and intellectual property received, but not paid 639 703 |
Schedule of Inventories | Inventories are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Raw materials $ 52,085 $ 57,061 Work-in-process 13,584 9,792 Finished goods 55,621 58,960 Total $ 121,290 $ 125,813 |
Schedule of Changes in Product Warranty Reserves | The changes in product warranty reserves are as follows (in thousands): Nine Months Ended September 30, 2018 2017 Beginning balance $ 16,335 $ 10,319 Liability assumed upon acquiring FFPS — 9,368 Provisions, net of releases 8,154 9,284 Settlements (11,245 ) (12,588 ) Ending balance $ 13,244 $ 16,383 |
Schedule of Equipment Subject to Operating Leases | Equipment leased to customers under operating leases was as follows (in thousands): September 30, 2018 December 31, 2017 Equipment leased to customers under operating leases $ 7,755 $ 5,432 Accumulated depreciation (3,297 ) (1,927 ) Equipment leased to customers under operating leases, net $ 4,458 $ 3,505 |
Schedule of Minimum Future Rental Revenues on Operating Leases | Scheduled minimum future rental revenue on operating leases as of September 30, 2018 was as follows (in thousands): Remainder of 2018 $ 729 2019 2,134 2020 2,590 2021 384 2022 432 Total $ 6,269 |
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCI classified within stockholders’ equity on our Condensed Consolidated Balance Sheets was as follows (in thousands): September 30, 2018 December 31, 2017 Net unrealized investment losses $ (941 ) $ (697 ) Currency translation gains (losses) (6,055 ) 8,794 Net unrealized gain on cash flow hedges — 41 Total $ (6,996 ) $ 8,138 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Our financing receivables are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Sales-type lease receivables $ 30,196 $ 16,558 Trade receivables 11,814 12,125 Total financing receivables $ 42,010 $ 28,683 Scheduled to be received in excess of one year $ 23,727 $ 15,191 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Available-for-Sale Short-Term Investments | Our available-for-sale short-term investments are summarized as follows (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Fair value September 30, 2018 U.S. Government and sponsored entities $ 55,322 $ — $ (714 ) $ 54,608 Corporate debt securities 51,345 — (495 ) 50,850 Municipal securities 383 — (4 ) 379 Asset-backed securities 7,020 33 (61 ) 6,992 Mortgage-backed securities – residential 158 — (1 ) 157 Total short-term investments $ 114,228 $ 33 $ (1,275 ) $ 112,986 December 31, 2017 U.S. Government and sponsored entities $ 59,824 $ — $ (660 ) $ 59,164 Corporate debt securities 79,356 — (450 ) 78,906 Municipal securities 382 — (2 ) 380 Asset-backed securities 9,808 44 (47 ) 9,805 Mortgage-backed securities – residential 445 — (3 ) 442 Total short-term investments $ 149,815 $ 44 $ (1,162 ) $ 148,697 The fair value and duration that investments, including cash equivalents, have been in a gross unrealized loss position below are as follows (in thousands): Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2018 U.S. Government and sponsored entities $ — $ — $ 54,608 $ (714 ) $ 54,608 $ (714 ) Corporate debt securities 10,159 (90 ) 40,691 (405 ) 50,850 (495 ) Municipal securities 379 (4 ) — — 379 (4 ) Asset-backed securities — — 6,934 (61 ) 6,934 (61 ) Mortgage-backed securities – residential 18 — 86 (1 ) 104 (1 ) Total $ 10,556 $ (94 ) $ 102,319 $ (1,181 ) $ 112,875 $ (1,275 ) December 31, 2017 U.S. Government and sponsored entities $ 23,023 $ (206 ) $ 35,989 $ (454 ) $ 59,012 $ (660 ) Corporate debt securities 45,857 (207 ) 32,634 (243 ) 78,491 (450 ) Municipal securities 378 (2 ) — — 378 (2 ) Asset-backed securities 6,779 (31 ) 2,947 (16 ) 9,726 (47 ) Mortgage-backed securities – residential 162 (2 ) 142 (1 ) 304 (3 ) Total $ 76,199 $ (448 ) $ 71,712 $ (714 ) $ 147,911 $ (1,162 ) |
Amortized Cost and Estimated Fair Value of Investments | Amortized cost and estimated fair value of investments as of September 30, 2018 , are summarized as follows (in thousands): Amortized cost Fair value Mature in less than one year $ 75,459 $ 74,864 Mature in one to three years 38,769 38,122 Total short-term investments $ 114,228 $ 112,986 |
Investments in Accordance with Fair Value Hierarchy | Our assets and liabilities measured at fair value by levels within the fair value hierarchy are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market funds $ 18,524 $ — $ — $ 18,524 $ 9,897 $ — $ — $ 9,897 U.S. Government and sponsored entities 33,279 21,328 — 54,607 33,261 25,903 — 59,164 Corporate debt securities — 50,850 — 50,850 — 78,906 — 78,906 Municipal securities — 379 — 379 — 380 — 380 Asset-backed securities — 6,934 59 6,993 — 9,754 51 9,805 Mortgage-backed securities – residential — 157 — 157 — 442 — 442 Total $ 51,803 $ 79,648 $ 59 $ 131,510 $ 43,158 $ 115,385 $ 51 $ 158,594 Liabilities: Contingent consideration, current and noncurrent $ — $ — $ 20,323 $ 20,323 $ — $ — $ 35,702 $ 35,702 Self-insurance — — 982 982 — — 902 902 Total $ — $ — $ 21,305 $ 21,305 $ — $ — $ 36,604 $ 36,604 |
Summary of Changes in Fair Value Contingent Consideration | Changes in the fair value of contingent consideration are summarized as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Liability for Contingent Consideration Beginning balance $ 22,129 $ 61,414 $ 35,702 $ 56,463 Fair value of Generation Digital contingent consideration at August 14, 2017 — 3,600 — 3,600 Changes in valuation 721 75 (12,054 ) 974 Earnout accretion 91 336 194 1,213 Payments and settlements (2,611 ) (10,265 ) (3,361 ) (11,559 ) Foreign currency adjustment (7 ) (1,640 ) (158 ) 2,829 Ending balance $ 20,323 $ 53,520 $ 20,323 53,520 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Balance Sheet Hedges Cover Currency Exposures in Notional Amounts | These balance sheet hedges cover currency exposures in the following line items in the notional amounts indicated (in thousands): Balance sheet categories September 30, 2018 December 31, 2017 Accounts Receivable $ 46,574 $ 44,427 Other assets and liabilities, net 38,185 46,550 Intercompany balances 125,189 144,477 Total $ 209,948 $ 235,454 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes | The Notes consisted of the following (in thousands): September 30, 2018 December 31, 2017 Liability component $ 345,000 $ 345,000 Debt discount, net of amortization (12,975 ) (23,178 ) Debt issuance costs, net of amortization (1,658 ) (2,865 ) Net carrying amount $ 330,367 $ 318,957 Equity component $ 63,643 $ 63,643 Less: debt issuance costs allocated to equity (1,582 ) (1,582 ) Net carrying amount $ 62,061 $ 62,061 |
Summary of Interest Expense Recognized Related to Notes | Interest expense recognized on the Notes was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 0.75% coupon $ 647 $ 647 $ 1,948 $ 1,933 Amortization of debt discount 3,448 3,265 10,203 9,627 Amortization of debt issuance costs 407 388 1,207 1,144 Total $ 4,502 $ 4,300 $ 13,358 $ 12,704 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense related to ESPP purchase rights and RSUs is summarized as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock-based compensation expense by type of awards RSUs $ 10,587 $ 3,545 $ 25,793 $ 18,875 ESPP purchase rights 1,336 1,103 4,685 3,666 Total stock-based compensation expense 11,923 4,648 30,478 22,541 Income tax benefit (1,747 ) (1,525 ) (4,437 ) (6,929 ) Stock-based compensation expense, net of tax $ 10,176 $ 3,123 $ 26,041 $ 15,612 |
Schedule of ESPP Purchase Rights and Underlying Weighted Average Assumptions | The estimated weighted average fair value per share and underlying assumptions of ESPP purchase rights issued were as follows: Nine Months Ended September 30, 2018 2017 Weighted average fair value per share $13.91 $12.09 Expected volatility 37 % — 80% 24 % — 28% Risk-free interest rate 2.2 % — 2.7% 0.7 % — 1.3% Expected term (in years) 0.5 — 2.0 0.5 — 2.0 |
Schedule of Non-Vested RSUs | Non-vested RSU activity during the nine months ended September 30, 2018 is summarized below (shares in thousands): Time-based Performance-based Market-based Total Shares Weighted average grant date fair value Shares Weighted average grant date fair value Shares Weighted average grant date fair value Shares Weighted average grant date fair value Non-vested at January 1, 2018 1,048 $ 35.76 1,209 $ 42.18 23 $ 35.15 2,280 $ 39.16 Granted 985 31.31 829 30.92 — — 1,814 31.13 Vested (287 ) 40.04 (20 ) 44.84 — — (307 ) 40.36 Forfeited (96 ) 34.90 (614 ) 44.65 — — (710 ) 43.33 Non-vested at September 30, 2018 1,650 32.41 1,404 34.42 23 35.15 3,077 33.35 |
Schedule of Weighted Average Grant Date Fair Value Per Share of Performance-Based RSUs Assumptions Used to Estimate Fair Value | The weighted average grant date fair value per share of performance-based RSUs granted and the assumptions used to estimate grant date fair value are as follows: Short-term Long-term Nine Months Ended September 30, 2018 Grant date fair value per share $ 28.26 $ 34.56 Service period (years) 1.0 3.0 Nine Months Ended September 30, 2017 Grant date fair value per share $ 47.23 $ 45.96 Service period (years) 1.0 2.0 – 3.0 |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Reserve Activities | Restructuring and other reserve activities are summarized as follows (in thousands): Nine Months Ended September 30, 2018 2017 Beginning reserve balance $ 2,452 $ 1,824 Restructuring charges 6,289 4,101 Other charges 4,188 1,321 Non-cash restructuring and other (686 ) (182 ) Payments (9,751 ) (4,720 ) Ending reserve balance $ 2,492 $ 2,344 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Tax Provisions before Discrete Items Reconciled to Recorded Provision for (Benefits from) Income Taxes | Our tax benefit from (provision for) income taxes before discrete items is reconciled to our recorded benefit from (provision for) income taxes, as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Benefit from (provision for) income taxes before discrete items $ 932 $ (1,973 ) $ (105 ) $ (4,517 ) Interest related to unrecognized tax benefits 71 — (154 ) (121 ) Benefit from (provision for) stock-based compensation, including ESPP dispositions 112 (363 ) 86 1,934 Benefit from reversals of uncertain tax positions 2,333 1,845 2,528 1,825 Benefit from (provision for) reassessment of taxes upon filing tax returns 135 (300 ) 213 (396 ) Benefit from (provision for) reassessment of taxes upon tax law change — — (160 ) 480 Benefit from (provision for) deemed repatriation transition tax 682 — (540 ) — Benefit from (provision for) income taxes $ 4,265 $ (791 ) $ 1,868 $ (795 ) |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | $ (257,134) | $ (248,359) | $ (758,072) | $ (724,097) | |
Gross profit | (125,519) | (127,457) | (373,214) | (378,239) | |
Net loss | $ (1,920) | $ (3,454) | $ (2,093) | $ (11,000) | |
Net income per diluted common share (in usd per share) | $ (0.04) | $ (0.07) | $ (0.05) | $ (0.23) | |
Interest rate of debt, stated percentage | 0.75% | 0.75% | |||
0.75% Convertible Senior Notes Due 2019 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt discount | $ 63,600 | $ 63,600 | |||
Interest rate of debt, stated percentage | 0.75% | 0.75% | 0.75% | ||
Effective interest rate percentage | 4.98% | 4.98% | 4.98% | ||
Debt issuance costs | 0.75% Convertible Senior Notes Due 2019 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Effective interest rate percentage | 5.46% | 5.46% | 5.46% | ||
Out Of Period Adjustment For Bill And Hold Transactions | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue | $ 3,400 | ||||
Gross profit | 500 | ||||
Net loss | $ 300 | ||||
Net income per diluted common share (in usd per share) | $ 0.01 | $ 0.01 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Cash, cash equivalents, and restricted cash equivalents (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||||
Cash and cash equivalents | $ 180,942 | $ 170,345 | $ 175,830 | $ 164,313 | |
Restricted cash equivalents | 39,809 | 32,531 | 6,826 | 1,142 | |
Total cash, cash equivalents, and restricted cash equivalents shown in the statement of cash flows | [1] | $ 220,751 | $ 202,876 | $ 182,656 | $ 165,455 |
[1] | Certain prior period amounts have been revised due to the implementation of ASU 2016-18. See Note 1 for details. |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Basic net income per share: | ||||
Net income available to common shareholders | $ 1,920 | $ 3,454 | $ 2,093 | $ 11,000 |
Weighted average common shares outstanding (in shares) | 44,428 | 46,348 | 44,714 | 46,442 |
Basic net income per share (in usd per share) | $ 0.04 | $ 0.07 | $ 0.05 | $ 0.24 |
Diluted net income per share: | ||||
Net income available to common shareholders | $ 1,920 | $ 3,454 | $ 2,093 | $ 11,000 |
Weighted average common shares outstanding (in shares) | 44,428 | 46,348 | 44,714 | 46,442 |
Dilutive stock options and non-vested RSUs and PSUs (in shares) | 926 | 589 | 674 | 660 |
Weighted average common shares outstanding for purposes of computing diluted net income per share (in shares) | 45,354 | 46,937 | 45,388 | 47,102 |
Diluted net income per share (in usd per share) | $ 0.04 | $ 0.07 | $ 0.05 | $ 0.23 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential shares of common stock excluded from the computation of diluted earnings per share | 667 | 737 | 1,192 | 646 |
RSUs & PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential shares of common stock excluded from the computation of diluted earnings per share | 626 | 327 | 554 | 304 |
ESPP purchase rights | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential shares of common stock excluded from the computation of diluted earnings per share | 41 | 410 | 638 | 342 |
Segment and Geographic Inform_3
Segment and Geographic Information - Revenue and Operating Profit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 257,134 | $ 248,359 | $ 758,072 | $ 724,097 |
Gross profit | 125,519 | 127,457 | 373,214 | 378,239 |
Industrial Inkjet | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 154,902 | 142,930 | 453,545 | 407,886 |
Gross profit | $ 53,661 | $ 53,392 | $ 158,351 | $ 154,972 |
Gross profit percentages | 34.60% | 37.40% | 34.90% | 38.00% |
Productivity Software | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 40,452 | $ 37,171 | $ 125,839 | $ 111,292 |
Gross profit | $ 28,394 | $ 26,667 | $ 88,988 | $ 81,431 |
Gross profit percentages | 70.20% | 71.70% | 70.70% | 73.20% |
Fiery | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 61,780 | $ 68,258 | $ 178,688 | $ 204,919 |
Gross profit | $ 44,368 | $ 47,884 | $ 128,590 | $ 143,821 |
Gross profit percentages | 71.80% | 70.20% | 72.00% | 70.20% |
Segment and Geographic Inform_4
Segment and Geographic Information - Segment Gross Profit to Consolidated Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Gross profit | $ 125,519 | $ 127,457 | $ 373,214 | $ 378,239 |
Stock-based compensation expense | (11,923) | (4,648) | (30,478) | (22,541) |
Segment gross profit | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | 126,423 | 127,943 | 375,929 | 380,224 |
Stock-based compensation expense | $ (904) | $ (486) | $ (2,715) | $ (1,985) |
Segment and Geographic Inform_5
Segment and Geographic Information - Tangible and Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 394,372 | $ 403,278 |
Identified intangible assets, net | 86,246 | 123,008 |
Tangible assets, net of liabilities | 279,648 | 255,025 |
Net tangible and intangible assets | 760,266 | 781,311 |
Operating Segment | Industrial Inkjet | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 150,197 | 154,373 |
Identified intangible assets, net | 45,688 | 66,547 |
Tangible assets, net of liabilities | 251,948 | 221,933 |
Net tangible and intangible assets | 447,833 | 442,853 |
Operating Segment | Productivity Software | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 170,098 | 174,644 |
Identified intangible assets, net | 24,903 | 36,379 |
Tangible assets, net of liabilities | (26,192) | (27,755) |
Net tangible and intangible assets | 168,809 | 183,268 |
Operating Segment | Fiery | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 74,077 | 74,261 |
Identified intangible assets, net | 15,655 | 20,082 |
Tangible assets, net of liabilities | 25,738 | 11,286 |
Net tangible and intangible assets | 115,470 | 105,629 |
Corporate and Unallocated Net Assets | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 0 | 0 |
Identified intangible assets, net | 0 | 0 |
Tangible assets, net of liabilities | 28,154 | 49,561 |
Net tangible and intangible assets | $ 28,154 | $ 49,561 |
Segment and Geographic Inform_6
Segment and Geographic Information - Revenue by Ship-to Destination (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 257,134 | $ 248,359 | $ 758,072 | $ 724,097 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 134,491 | 129,488 | 374,170 | 353,397 |
Europe, Middle East, and Africa (“EMEA”) | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 88,879 | 85,089 | 271,064 | 274,635 |
Asia Pacific (“APAC”) | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 33,764 | $ 33,782 | $ 112,838 | $ 96,065 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue recognized | $ 7.6 | $ 45.3 | |
Asset, reclassified to receivable | $ 2.7 | $ 24.6 | |
Effect of change higher (lower) | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect on retained earnings, net of tax | $ 4.7 |
Revenue - Balance Sheet, Cumula
Revenue - Balance Sheet, Cumulative Effect (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Accounts receivable, net | $ 240,150 | $ 244,518 | $ 244,416 |
Other current assets | 47,814 | 40,171 | 41,799 |
Deferred tax assets | 43,265 | 43,617 | 45,083 |
Other assets | 34,369 | 23,566 | 15,504 |
Liabilities | |||
Deferred revenue | 65,181 | 55,738 | 55,833 |
Noncurrent contingent and other liabilities | 17,307 | 29,292 | 28,801 |
Stockholders’ equity: | |||
Retained earnings | 409,311 | $ 407,218 | 402,544 |
Amounts in Accordance with ASC 606 | |||
Assets | |||
Accounts receivable, net | 240,150 | ||
Other current assets | 47,814 | ||
Deferred tax assets | 43,265 | ||
Other assets | 34,369 | ||
Liabilities | |||
Deferred revenue | 65,181 | ||
Noncurrent contingent and other liabilities | 17,307 | ||
Stockholders’ equity: | |||
Retained earnings | $ 409,311 | ||
December 31, 2017 | |||
Assets | |||
Accounts receivable, net | 244,416 | ||
Other current assets | 41,799 | ||
Deferred tax assets | 45,083 | ||
Other assets | 15,504 | ||
Liabilities | |||
Deferred revenue | 55,833 | ||
Noncurrent contingent and other liabilities | 28,801 | ||
Stockholders’ equity: | |||
Retained earnings | 402,544 | ||
ASC 606 Adjustments | Amounts in Accordance with ASC 606 | |||
Assets | |||
Accounts receivable, net | 102 | ||
Other current assets | (1,628) | ||
Deferred tax assets | (1,466) | ||
Other assets | 8,062 | ||
Liabilities | |||
Deferred revenue | (95) | ||
Noncurrent contingent and other liabilities | 491 | ||
Stockholders’ equity: | |||
Retained earnings | $ 4,674 |
Revenue - Statement of Operatio
Revenue - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Revenue from External Customer [Line Items] | |||||
Cost of revenue | [1] | $ 131,615 | $ 120,902 | $ 384,858 | $ 345,858 |
Gross profit | 125,519 | 127,457 | 373,214 | 378,239 | |
Operating expenses | 123,404 | 120,060 | 359,520 | 354,708 | |
Income from operations | 2,115 | 7,397 | 13,694 | 23,531 | |
Interest income and other income, net | 336 | 1,760 | 1,270 | 2,802 | |
Income (loss) before income taxes | (2,345) | 4,245 | 225 | 11,795 | |
Benefits from income taxes | (4,265) | 791 | (1,868) | 795 | |
Net income (loss) | 1,920 | $ 3,454 | 2,093 | $ 11,000 | |
Amounts in Accordance with ASC 606 | |||||
Revenue from External Customer [Line Items] | |||||
Revenue | 257,134 | 758,072 | |||
Cost of revenue | 131,615 | 384,858 | |||
Gross profit | 125,519 | 373,214 | |||
Operating expenses | 123,404 | 359,520 | |||
Income from operations | 2,115 | 13,694 | |||
Interest income and other income, net | 336 | 1,270 | |||
Income (loss) before income taxes | (2,345) | 225 | |||
Benefits from income taxes | (4,265) | (1,868) | |||
Net income (loss) | 1,920 | 2,093 | |||
Amounts in Accordance with ASC 605 | |||||
Revenue from External Customer [Line Items] | |||||
Revenue | 255,746 | 754,348 | |||
Cost of revenue | 131,067 | 384,509 | |||
Gross profit | 124,679 | 369,839 | |||
Operating expenses | 123,316 | 359,418 | |||
Income from operations | 1,363 | 10,421 | |||
Interest income and other income, net | 199 | 823 | |||
Income (loss) before income taxes | (3,234) | (3,495) | |||
Benefits from income taxes | (4,465) | (2,363) | |||
Net income (loss) | 1,231 | (1,132) | |||
Effect of change higher (lower) | Effect of change higher (lower) | |||||
Revenue from External Customer [Line Items] | |||||
Revenue | 1,388 | 3,724 | |||
Cost of revenue | 548 | 349 | |||
Gross profit | 840 | 3,375 | |||
Operating expenses | 88 | 102 | |||
Income from operations | 752 | 3,273 | |||
Interest income and other income, net | 137 | 447 | |||
Income (loss) before income taxes | 889 | 3,720 | |||
Benefits from income taxes | 200 | 495 | |||
Net income (loss) | $ 689 | $ 3,225 | |||
[1] | Includes stock-based compensation expense as follows: Three Months EndedSeptember 30, Nine Months Ended September 30, 2018 2017 2018 2017Cost of revenue$904 $486 $2,715 $1,985Research and development3,649 1,640 9,517 7,556Sales and marketing2,377 1,108 6,767 5,176General and administrative4,993 1,414 11,479 7,824 |
Revenue - Balance Sheet, Impact
Revenue - Balance Sheet, Impact of Adoption (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Accounts receivable, net | $ 240,150 | $ 244,518 | $ 244,416 |
Other current assets | 47,814 | 40,171 | 41,799 |
Deferred tax assets | 43,265 | 43,617 | 45,083 |
Other assets | 34,369 | 23,566 | 15,504 |
Liabilities | |||
Deferred revenue | 65,181 | 55,738 | 55,833 |
Noncurrent contingent and other liabilities | 17,307 | 29,292 | 28,801 |
Stockholders’ equity | |||
Retained earnings | 409,311 | $ 407,218 | $ 402,544 |
Amounts in Accordance with ASC 606 | |||
Assets | |||
Accounts receivable, net | 240,150 | ||
Other current assets | 47,814 | ||
Deferred tax assets | 43,265 | ||
Other assets | 34,369 | ||
Liabilities | |||
Deferred revenue | 65,181 | ||
Noncurrent contingent and other liabilities | 17,307 | ||
Stockholders’ equity | |||
Retained earnings | 409,311 | ||
Amounts in Accordance with ASC 605 | |||
Assets | |||
Accounts receivable, net | 236,018 | ||
Other current assets | 49,790 | ||
Deferred tax assets | 45,226 | ||
Other assets | 26,409 | ||
Liabilities | |||
Deferred revenue | 65,239 | ||
Noncurrent contingent and other liabilities | 16,993 | ||
Stockholders’ equity | |||
Retained earnings | 401,412 | ||
Effect of change higher (lower) | Effect of change higher (lower) | |||
Assets | |||
Accounts receivable, net | 4,132 | ||
Other current assets | (1,976) | ||
Deferred tax assets | (1,961) | ||
Other assets | 7,960 | ||
Liabilities | |||
Deferred revenue | (58) | ||
Noncurrent contingent and other liabilities | 314 | ||
Stockholders’ equity | |||
Retained earnings | $ 7,899 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregated Revenue by Source (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 257,134 | $ 248,359 | $ 758,072 | $ 724,097 |
Printers and parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 97,846 | 283,819 | ||
Ink, supplies, and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 57,056 | 169,726 | ||
Licenses | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,774 | 34,086 | ||
Professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,349 | 22,919 | ||
Maintenance and subscriptions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22,329 | 68,834 | ||
Digital front ends and related products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 58,257 | 167,713 | ||
Maintenance and subscriptions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,523 | 10,975 | ||
Industrial Inkjet | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 154,902 | 142,930 | 453,545 | 407,886 |
Industrial Inkjet | Printers and parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 97,846 | 283,819 | ||
Industrial Inkjet | Ink, supplies, and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 57,056 | 169,726 | ||
Industrial Inkjet | Licenses | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Industrial Inkjet | Professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Industrial Inkjet | Maintenance and subscriptions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Industrial Inkjet | Digital front ends and related products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Industrial Inkjet | Maintenance and subscriptions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Productivity Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 40,452 | 37,171 | 125,839 | 111,292 |
Productivity Software | Printers and parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Productivity Software | Ink, supplies, and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Productivity Software | Licenses | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,774 | 34,086 | ||
Productivity Software | Professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,349 | 22,919 | ||
Productivity Software | Maintenance and subscriptions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22,329 | 68,834 | ||
Productivity Software | Digital front ends and related products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Productivity Software | Maintenance and subscriptions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Fiery | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 61,780 | $ 68,258 | 178,688 | $ 204,919 |
Fiery | Printers and parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Fiery | Ink, supplies, and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Fiery | Licenses | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Fiery | Professional services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Fiery | Maintenance and subscriptions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Fiery | Digital front ends and related products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 58,257 | 167,713 | ||
Fiery | Maintenance and subscriptions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,523 | 10,975 | ||
Transferred at a Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 218,552 | 639,579 | ||
Transferred at a Point in Time | Industrial Inkjet | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 149,521 | 437,780 | ||
Transferred at a Point in Time | Productivity Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,774 | 34,086 | ||
Transferred at a Point in Time | Fiery | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 58,257 | 167,713 | ||
Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 38,582 | 118,493 | ||
Transferred Over Time | Industrial Inkjet | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,381 | 15,765 | ||
Transferred Over Time | Productivity Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 29,678 | 91,753 | ||
Transferred Over Time | Fiery | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,523 | 10,975 | ||
Non-Recurring | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 174,226 | 508,537 | ||
Non-Recurring | Industrial Inkjet | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 97,846 | 283,819 | ||
Non-Recurring | Productivity Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 18,123 | 57,005 | ||
Non-Recurring | Fiery | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 58,257 | 167,713 | ||
Recurring | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 82,908 | 249,535 | ||
Recurring | Industrial Inkjet | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 57,056 | 169,726 | ||
Recurring | Productivity Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22,329 | 68,834 | ||
Recurring | Fiery | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,523 | $ 10,975 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 $ in Millions | Sep. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 105.4 |
Expect time to recognize revenue | 12 months |
Revenue - Summary of Unbilled A
Revenue - Summary of Unbilled Accounts Receivable and Deferred Revenue (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue Recognition [Abstract] | |||
Unbilled accounts receivable – current | $ 34,830 | $ 23,296 | |
Unbilled accounts receivable – noncurrent | 3,483 | 4,122 | |
Deferred revenue – current | 65,181 | 55,738 | $ 55,833 |
Deferred revenue – noncurrent | $ 349 | $ 565 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Supplemental Financial Statement Information [Abstract] | ||
Net cash paid for income taxes | $ 12,765 | $ 15,724 |
Cash paid for interest expense | 3,001 | 3,667 |
Property, equipment, and intellectual property received, but not paid | $ 639 | $ 703 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Raw materials | $ 52,085 | $ 57,061 |
Work-in-process | 13,584 | 9,792 |
Finished goods | 55,621 | 58,960 |
Total | $ 121,290 | $ 125,813 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Capitalized contract acquisition costs | $ 8,100,000 | |||
Amortization of deferred contract acquisition costs | $ 1,100,000 | $ 3,300,000 | ||
Impairment loss of capitalized contract acquisition costs | 0 | 0 | ||
Change in Capitalized Contract Cost | 1,100,000 | 3,200,000 | ||
Deferred cost of revenue | $ 1,300,000 | $ 1,300,000 | $ 3,500,000 | |
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred sales commissions amortization period | 3 years | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred sales commissions amortization period | 4 years |
Supplemental Financial Statem_6
Supplemental Financial Statement Information - Product Warranty Reserves (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning balance | $ 16,335 | $ 10,319 |
Liability assumed upon acquiring FFPS | 0 | 9,368 |
Provisions, net of releases | 8,154 | 9,284 |
Settlements | (11,245) | (12,588) |
Ending balance | $ 13,244 | $ 16,383 |
Supplemental Financial Statem_7
Supplemental Financial Statement Information - Equipment Leased to Customers Under Operating Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Equipment leased to customers under operating leases | $ 7,755 | $ 5,432 |
Accumulated depreciation | (3,297) | (1,927) |
Equipment leased to customers under operating leases, net | $ 4,458 | $ 3,505 |
Supplemental Financial Statem_8
Supplemental Financial Statement Information - Minimum Future Rental Revenues on Operating Leases (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Supplemental Financial Statement Information [Abstract] | |
Remainder of 2018 | $ 729 |
2,019 | 2,134 |
2,020 | 2,590 |
2,021 | 384 |
2,022 | 432 |
Total | $ 6,269 |
Supplemental Financial Statem_9
Supplemental Financial Statement Information - Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Net unrealized investment losses | $ (941) | $ (697) |
Currency translation gains (losses) | (6,055) | 8,794 |
Net unrealized gain on cash flow hedges | 0 | 41 |
Total | $ (6,996) | $ 8,138 |
Accounts Receivable - Financing
Accounts Receivable - Financing Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables | $ 42,010 | $ 28,683 |
Sales-type lease receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables | 30,196 | 16,558 |
Trade receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables | 11,814 | 12,125 |
Scheduled to be received in excess of one year | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables | $ 23,727 | $ 15,191 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
United States And Europe | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables sold with recourse | $ 3.1 | $ 13.1 | $ 21.4 |
Europe | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables sold without recourse | $ 1.1 | $ 6.8 | $ 5.9 |
Fair Value Measurements - Avail
Fair Value Measurements - Available-for-Sale Short-Term Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 114,228 | $ 149,815 |
Gross unrealized gains | 33 | 44 |
Gross unrealized losses | (1,275) | (1,162) |
Fair value | 112,986 | 148,697 |
U.S. Government and sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 55,322 | 59,824 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (714) | (660) |
Fair value | 54,608 | 59,164 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 51,345 | 79,356 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (495) | (450) |
Fair value | 50,850 | 78,906 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 383 | 382 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (4) | (2) |
Fair value | 379 | 380 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 7,020 | 9,808 |
Gross unrealized gains | 33 | 44 |
Gross unrealized losses | (61) | (47) |
Fair value | 6,992 | 9,805 |
Mortgage-backed securities – residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 158 | 445 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1) | (3) |
Fair value | $ 157 | $ 442 |
Fair Value Measurements - Gross
Fair Value Measurements - Gross Unrealized Loss Positions (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | $ 10,556 | $ 76,199 |
Unrealized Losses, Less than 12 Months | (94) | (448) |
Fair Value, More than 12 Months | 102,319 | 71,712 |
Unrealized Losses, More than 12 Months | (1,181) | (714) |
Fair Value, Total | 112,875 | 147,911 |
Unrealized Losses, Total | (1,275) | (1,162) |
U.S. Government and sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 0 | 23,023 |
Unrealized Losses, Less than 12 Months | 0 | (206) |
Fair Value, More than 12 Months | 54,608 | 35,989 |
Unrealized Losses, More than 12 Months | (714) | (454) |
Fair Value, Total | 54,608 | 59,012 |
Unrealized Losses, Total | (714) | (660) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 10,159 | 45,857 |
Unrealized Losses, Less than 12 Months | (90) | (207) |
Fair Value, More than 12 Months | 40,691 | 32,634 |
Unrealized Losses, More than 12 Months | (405) | (243) |
Fair Value, Total | 50,850 | 78,491 |
Unrealized Losses, Total | (495) | (450) |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 379 | 378 |
Unrealized Losses, Less than 12 Months | (4) | (2) |
Fair Value, More than 12 Months | 0 | 0 |
Unrealized Losses, More than 12 Months | 0 | 0 |
Fair Value, Total | 379 | 378 |
Unrealized Losses, Total | (4) | (2) |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 0 | 6,779 |
Unrealized Losses, Less than 12 Months | 0 | (31) |
Fair Value, More than 12 Months | 6,934 | 2,947 |
Unrealized Losses, More than 12 Months | (61) | (16) |
Fair Value, Total | 6,934 | 9,726 |
Unrealized Losses, Total | (61) | (47) |
Mortgage-backed securities – residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than 12 Months | 18 | 162 |
Unrealized Losses, Less than 12 Months | 0 | (2) |
Fair Value, More than 12 Months | 86 | 142 |
Unrealized Losses, More than 12 Months | (1) | (1) |
Fair Value, Total | 104 | 304 |
Unrealized Losses, Total | $ (1) | $ (3) |
Fair Value Measurements - Amort
Fair Value Measurements - Amortized Cost and Estimated Fair Value (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Amortized cost | |
Mature in less than one year | $ 75,459 |
Mature in one to three years | 38,769 |
Total short-term investments | 114,228 |
Fair value | |
Mature in less than one year | 74,864 |
Mature in one to three years | 38,122 |
Total short-term investments | $ 112,986 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2014 | |
Investments And Fair Value Measurements [Line Items] | |||||||||
Net unrealized losses on sale of securities included in other comprehensive income | $ 1,200,000 | $ 1,100,000 | |||||||
Transfers between Level 1 and 2 | $ 0 | $ 0 | 0 | $ 0 | |||||
Fair value of liability | 20,323,000 | 53,520,000 | 20,323,000 | 53,520,000 | 35,702,000 | $ 22,129,000 | $ 61,414,000 | $ 56,463,000 | |
Contingent consideration, current | 8,500,000 | 8,500,000 | |||||||
Contingent consideration, noncurrent | 11,800,000 | 11,800,000 | |||||||
Payments | 2,611,000 | 10,265,000 | 3,361,000 | 11,559,000 | |||||
Change in fair value of contingent consideration | 721,000 | $ 75,000 | (12,054,000) | $ 974,000 | |||||
Increase in fair value of contingent consideration resulting from a change in discount rate | 200,000 | ||||||||
Decrease in fair value of contingent consideration resulting from a change in discount rate | 200,000 | ||||||||
Notional amount of derivative assets and liabilities | 209,900,000 | 209,900,000 | 239,400,000 | ||||||
Increase in Fair Value | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Change in fair value of contingent consideration | 1,800,000 | ||||||||
Decrease in Fair Value | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Change in fair value of contingent consideration | (1,200,000) | ||||||||
Maximum Potential Payment | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Payments | 11,400,000 | ||||||||
All Acquisitions | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Fair value of liability | 20,300,000 | 20,300,000 | $ 35,700,000 | ||||||
Optitex, Generation Digital, and Shuttleworth [Member] | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Change in fair value of contingent consideration | (1,500,000) | (14,300,000) | |||||||
Escada | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Change in fair value of contingent consideration | $ 2,200,000 | $ 2,200,000 | |||||||
Earnout Achievement Probability Minimum | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Probability of achieving revenue | 50.00% | 50.00% | |||||||
Earnout Achievement Probability Maximum | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Probability of achieving revenue | 100.00% | 100.00% | |||||||
Minimum | All Acquisitions | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Fair value key assumption risk-free discount rate | 0.60% | 0.60% | |||||||
Maximum | All Acquisitions | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Fair value key assumption risk-free discount rate | 4.98% | 4.98% | |||||||
Level 1 | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Net Asset Value per share | $ 1 | $ 1 | |||||||
Convertible Senior Notes Due Two Thousand Nineteen | |||||||||
Investments And Fair Value Measurements [Line Items] | |||||||||
Debt instrument, principal amount | $ 345,000,000 | ||||||||
Debt instrument, fair value disclosure | $ 340,700,000 | $ 340,700,000 |
Fair Value Measurements - Inves
Fair Value Measurements - Investments in Accordance with Hierarchy (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | $ 112,986 | $ 148,697 | ||||
Contingent consideration, current and noncurrent | 20,323 | $ 22,129 | 35,702 | $ 53,520 | $ 61,414 | $ 56,463 |
U.S. Government and sponsored entities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 54,608 | 59,164 | ||||
Corporate debt securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 50,850 | 78,906 | ||||
Municipal securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 379 | 380 | ||||
Asset-backed securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 6,992 | 9,805 | ||||
Mortgage-backed securities – residential | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 157 | 442 | ||||
Fair Value | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 131,510 | 158,594 | ||||
Contingent consideration, current and noncurrent | 20,323 | 35,702 | ||||
Self-insurance | 982 | 902 | ||||
Liabilities | 21,305 | 36,604 | ||||
Fair Value | Money market funds | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 18,524 | 9,897 | ||||
Fair Value | U.S. Government and sponsored entities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 54,607 | 59,164 | ||||
Fair Value | Corporate debt securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 50,850 | 78,906 | ||||
Fair Value | Municipal securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 379 | 380 | ||||
Fair Value | Asset-backed securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 6,993 | 9,805 | ||||
Fair Value | Mortgage-backed securities – residential | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 157 | 442 | ||||
Fair Value | Level 1 | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 51,803 | 43,158 | ||||
Contingent consideration, current and noncurrent | 0 | 0 | ||||
Self-insurance | 0 | 0 | ||||
Liabilities | 0 | 0 | ||||
Fair Value | Level 1 | Money market funds | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 18,524 | 9,897 | ||||
Fair Value | Level 1 | U.S. Government and sponsored entities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 33,279 | 33,261 | ||||
Fair Value | Level 1 | Corporate debt securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 0 | 0 | ||||
Fair Value | Level 1 | Municipal securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 0 | 0 | ||||
Fair Value | Level 1 | Asset-backed securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 0 | 0 | ||||
Fair Value | Level 1 | Mortgage-backed securities – residential | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 0 | 0 | ||||
Fair Value | Level 2 | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 79,648 | 115,385 | ||||
Contingent consideration, current and noncurrent | 0 | 0 | ||||
Self-insurance | 0 | 0 | ||||
Liabilities | 0 | 0 | ||||
Fair Value | Level 2 | Money market funds | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 0 | 0 | ||||
Fair Value | Level 2 | U.S. Government and sponsored entities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 21,328 | 25,903 | ||||
Fair Value | Level 2 | Corporate debt securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 50,850 | 78,906 | ||||
Fair Value | Level 2 | Municipal securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 379 | 380 | ||||
Fair Value | Level 2 | Asset-backed securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 6,934 | 9,754 | ||||
Fair Value | Level 2 | Mortgage-backed securities – residential | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 157 | 442 | ||||
Fair Value | Level 3 | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 59 | 51 | ||||
Contingent consideration, current and noncurrent | 20,323 | 35,702 | ||||
Self-insurance | 982 | 902 | ||||
Liabilities | 21,305 | 36,604 | ||||
Fair Value | Level 3 | Money market funds | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 0 | 0 | ||||
Fair Value | Level 3 | U.S. Government and sponsored entities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 0 | 0 | ||||
Fair Value | Level 3 | Corporate debt securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 0 | 0 | ||||
Fair Value | Level 3 | Municipal securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 0 | 0 | ||||
Fair Value | Level 3 | Asset-backed securities | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | 59 | 51 | ||||
Fair Value | Level 3 | Mortgage-backed securities – residential | ||||||
Investments And Fair Value Measurements [Line Items] | ||||||
Assets | $ 0 | $ 0 |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Beginning balance, Fair value of contingent consideration | $ 22,129 | $ 61,414 | $ 35,702 | $ 56,463 |
Changes in valuation | (721) | (75) | 12,054 | (974) |
Earnout accretion | 91 | 336 | 194 | 1,213 |
Payments and settlements | (2,611) | (10,265) | (3,361) | (11,559) |
Foreign currency adjustment | 7 | 1,640 | 158 | (2,829) |
Ending balance, Fair value of contingent consideration | $ 20,323 | 53,520 | $ 20,323 | 53,520 |
Generation Digital Solutions, Inc. | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Beginning balance, Fair value of contingent consideration | $ 3,600 | $ 3,600 |
Derivatives and Hedging - Addit
Derivatives and Hedging - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative assets and liabilities | $ 209,900,000 | $ 239,400,000 |
Foreign Exchange Contracts | Designated as Cash Flow Hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of derivative assets and liabilities | $ 0 | $ 3,900,000 |
Derivatives and Hedging - Curre
Derivatives and Hedging - Currency Exposures in Notional Amounts (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivatives and their notional amounts | $ 209,900 | $ 239,400 |
Accounts Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives and their notional amounts | 46,574 | 44,427 |
Other assets and liabilities, net | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives and their notional amounts | 38,185 | 46,550 |
Intercompany balances | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives and their notional amounts | 125,189 | 144,477 |
Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives and their notional amounts | $ 209,948 | $ 235,454 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Detail) | 1 Months Ended | ||
Sep. 30, 2014USD ($)$ / shares | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Interest rate of debt, stated percentage | 0.75% | ||
Net carrying amount | $ 0 | $ 318,957,000 | |
Aggregate amount paid for Note Hedges | $ 63,900,000 | ||
Proceeds from sale of warrants | 34,500,000 | ||
Liability component | |||
Debt Instrument [Line Items] | |||
Net carrying amount | 330,367,000 | 318,957,000 | |
Equity component | |||
Debt Instrument [Line Items] | |||
Net carrying amount | 62,061,000 | 62,061,000 | |
Equity component, gross | |||
Debt Instrument [Line Items] | |||
Net carrying amount | 63,600,000 | $ 63,643,000 | $ 63,643,000 |
0.75% Convertible Senior Notes Due 2019 | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount | $ 345,000,000 | ||
Interest rate of debt, stated percentage | 0.75% | 0.75% | |
Net proceeds from issuance of debt | $ 336,300,000 | ||
Net proceeds used to purchase Note Hedges | $ 29,400,000 | ||
Conversion rate, number of share per $1,000 principal amount | 18.9667 | ||
Conversion rate, principal amount of Notes | $ 1,000 | ||
Initial conversion price (in USD per share) | $ / shares | $ 52.72 | ||
Effective interest rate percentage | 4.98% | 4.98% | |
Deferred tax liability | $ 23,700,000 | ||
0.75% Convertible Senior Notes Due 2019 | Liability component | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | 7,000,000 | ||
0.75% Convertible Senior Notes Due 2019 | Liability component, gross | |||
Debt Instrument [Line Items] | |||
Net carrying amount | 281,400,000 | ||
0.75% Convertible Senior Notes Due 2019 | Equity component | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 1,600,000 | ||
0.75% Convertible Senior Notes Due 2019 | Debt issuance costs | |||
Debt Instrument [Line Items] | |||
Effective interest rate percentage | 5.46% | 5.46% | |
Warrant | |||
Debt Instrument [Line Items] | |||
Common stock strike price per share | $ / shares | $ 68.86 |
Convertible Senior Notes - Sche
Convertible Senior Notes - Schedule of Convertible Notes (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | |||
Net carrying amount | $ 0 | $ 318,957 | |
Liability component, gross | |||
Debt Instrument [Line Items] | |||
Liability component | 345,000 | 345,000 | |
Liability component | |||
Debt Instrument [Line Items] | |||
Debt discount, net of amortization | (12,975) | (23,178) | |
Debt issuance costs, net of amortization | (1,658) | (2,865) | |
Net carrying amount | 330,367 | 318,957 | |
Equity component, gross | |||
Debt Instrument [Line Items] | |||
Net carrying amount | 63,643 | 63,643 | $ 63,600 |
Equity component | |||
Debt Instrument [Line Items] | |||
Debt issuance costs, net of amortization | (1,582) | (1,582) | |
Net carrying amount | $ 62,061 | $ 62,061 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Disclosure [Abstract] | ||||
0.75% coupon | $ 647 | $ 647 | $ 1,948 | $ 1,933 |
Amortization of debt discount | 3,448 | 3,265 | 10,203 | 9,627 |
Amortization of debt issuance costs | 407 | 388 | 1,207 | 1,144 |
Total | $ 4,502 | $ 4,300 | $ 13,358 | $ 12,704 |
Interest rate of debt, stated percentage | 0.75% | 0.75% |
Commitments and Contingencies (
Commitments and Contingencies (Detail) ft² in Thousands | Jul. 31, 2018USD ($) | Jul. 27, 2018USD ($) | Aug. 26, 2016USD ($)ft²aRenewal_Option | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($)ft²aBuilding | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Commitments And Contingencies [Line Items] | ||||||||
Lease term, capital lease | 10 years | |||||||
Capital lease obligations incurred | $ 16,000,000 | |||||||
Property and equipment, net | $ 13,700,000 | $ 79,495,000 | $ 98,762,000 | $ 79,495,000 | ||||
Capital lease decrease in obligations | 14,500,000 | |||||||
Capital lease obligations, termination penalties | $ 800,000 | |||||||
Gain (loss) on sale of properties | (100,000) | |||||||
Assets held for sale | 3,143,000 | 4,200,000 | 3,143,000 | |||||
Impairment of long-lived assets | 900,000 | |||||||
Proceeds from sale of held-for-sale building and land | 1,100,000 | 1,137,000 | $ 0 | |||||
Gain (loss) on disposal | 100,000 | |||||||
Funds invested under lease | 39,809,000 | $ 32,531,000 | 39,809,000 | $ 6,826,000 | $ 1,142,000 | |||
Assets Held-for-Sale | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Acres of land | a | 31.5 | |||||||
Number of manufacturing buildings | Building | 2 | |||||||
Area of real estate property | ft² | 163 | |||||||
Assets held for sale | 3,100,000 | $ 5,100,000 | 3,100,000 | |||||
Off Balance Sheet Financing - Synthetic Lease Arrangements | City of Manchester | Land Lease | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Acres of land | a | 16.9 | |||||||
Lease term | 48 years 6 months | |||||||
Number of renewal options for lease agreement | Renewal_Option | 2 | |||||||
Renewal term of lease | 5 years | |||||||
Renewal term of lease | 3 years 6 months | |||||||
Minimum lease payments | $ 13,300,000 | |||||||
Lease term, included in facility lease | 6 months | |||||||
Off Balance Sheet Financing - Synthetic Lease Arrangements | MUFG Americas Capital Leasing and Finance, LLC | Building Lease | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Area of real estate property | ft² | 225 | |||||||
Lease term | 6 years | |||||||
Minimum lease payments | $ 1,800,000 | |||||||
Residual value guarantee percentage | 89.00% | |||||||
Off Balance Sheet Financing - Synthetic Lease Arrangements | MUFG Americas Capital Leasing and Finance, LLC | Cash Equivalents | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Funds invested under lease | 39,800,000 | 39,800,000 | ||||||
Minimum | Matan Digital Printers | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Estimated material loss from outstanding claim in business acquisition | 1 | 1 | ||||||
Maximum | Matan Digital Printers | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Estimated material loss from outstanding claim in business acquisition | $ 10,100,000 | $ 10,100,000 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Detail) - USD ($) | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 11, 2017 | Nov. 30, 2015 | |
Stock Repurchase Program [Line Items] | ||||
Repurchase of common stock, authorized amount | $ 125,000,000 | $ 150,000,000 | ||
Aggregate shares repurchased (in shares) | 1,614,166 | 1,019,544 | ||
Aggregate purchase price | $ 50,500,000 | $ 47,000,000 | ||
Remaining available authorized repurchase amount | $ 58,900,000 | |||
Net Share Settlement | ||||
Stock Repurchase Program [Line Items] | ||||
Aggregate shares repurchased (in shares) | 63,107 | 233,159 | ||
Value of shares surrendered to satisfy tax withholding obligations | $ 2,000,000 | $ 10,000,000 |
Stock-based Compensation - Comp
Stock-based Compensation - Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 11,923 | $ 4,648 | $ 30,478 | $ 22,541 |
Income tax benefit | (1,747) | (1,525) | (4,437) | (6,929) |
Stock-based compensation expense, net of tax | 10,176 | 3,123 | 26,041 | 15,612 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 10,587 | 3,545 | 25,793 | 18,875 |
ESPP purchase rights | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 1,336 | $ 1,103 | $ 4,685 | $ 3,666 |
Stock-based Compensation - ESPP
Stock-based Compensation - ESPP Purchase Rights (Detail) - ESPP purchase rights - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value per share (in usd per share) | $ 13.91 | $ 12.09 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 37.00% | 24.00% |
Risk-free interest rate | 2.20% | 0.70% |
Expected term (in years) | 6 months | 6 months |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 80.00% | 28.00% |
Risk-free interest rate | 2.70% | 1.30% |
Expected term (in years) | 2 years | 2 years |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in Period (in shares) | 0 | |
Stock options outstanding (in shares) | 100,000 | |
Stock options exercisable (in shares) | 150,000 | |
Stock options, aggregate intrinsic value | $ 1.8 | |
Stock options, weighted average exercise price (in USD per share) | $ 15.9975 | |
Stock options, weighted average remaining contractual term (years) | 8 months 22 days | |
Granted (in shares) | 1,814,000 | |
Consecutive trading days, vesting threshold | 90 days | |
Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in Period (in shares) | 0 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of RSUs vested during the year | $ 12.4 | |
Aggregate intrinsic value of RSUs vested and expected to vest | $ 57.7 | |
Weighted average period of recognition of unrecognized compensation cost | 1 year 1 month | |
Performance-based options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 0 | |
Market-based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 0 | |
Market-based stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 0 | |
Minimum | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
Maximum | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Non-Vested RSUs (Detail) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 2,280,000 |
Granted (in shares) | shares | 1,814,000 |
Vested (in shares) | shares | (307,000) |
Forfeited (in shares) | shares | (710,000) |
Ending balance (in shares) | shares | 3,077,000 |
Weighted average grant date fair value | |
Beginning balance (in USD per share) | $ / shares | $ 39.16 |
Granted (in USD per share) | $ / shares | 31.13 |
Vested (in USD per share) | $ / shares | 40.36 |
Forfeited (in USD per share) | $ / shares | 43.33 |
Ending balance (in USD per share) | $ / shares | $ 33.35 |
Time-based | |
Shares | |
Beginning balance (in shares) | shares | 1,048,000 |
Granted (in shares) | shares | 985,000 |
Vested (in shares) | shares | (287,000) |
Forfeited (in shares) | shares | (96,000) |
Ending balance (in shares) | shares | 1,650,000 |
Weighted average grant date fair value | |
Beginning balance (in USD per share) | $ / shares | $ 35.76 |
Granted (in USD per share) | $ / shares | 31.31 |
Vested (in USD per share) | $ / shares | 40.04 |
Forfeited (in USD per share) | $ / shares | 34.90 |
Ending balance (in USD per share) | $ / shares | $ 32.41 |
Performance-based | |
Shares | |
Beginning balance (in shares) | shares | 1,209,000 |
Granted (in shares) | shares | 829,000 |
Vested (in shares) | shares | (20,000) |
Forfeited (in shares) | shares | (614,000) |
Ending balance (in shares) | shares | 1,404,000 |
Weighted average grant date fair value | |
Beginning balance (in USD per share) | $ / shares | $ 42.18 |
Granted (in USD per share) | $ / shares | 30.92 |
Vested (in USD per share) | $ / shares | 44.84 |
Forfeited (in USD per share) | $ / shares | 44.65 |
Ending balance (in USD per share) | $ / shares | $ 34.42 |
Market-based | |
Shares | |
Beginning balance (in shares) | shares | 23,000 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 23,000 |
Weighted average grant date fair value | |
Beginning balance (in USD per share) | $ / shares | $ 35.15 |
Granted (in USD per share) | $ / shares | 0 |
Vested (in USD per share) | $ / shares | 0 |
Forfeited (in USD per share) | $ / shares | 0 |
Ending balance (in USD per share) | $ / shares | $ 35.15 |
Stock-based Compensation - Perf
Stock-based Compensation - Performance-Based RSUs (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value per share (in USD per share) | $ 31.13 | |
Performance-based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value per share (in USD per share) | 30.92 | |
Performance-based | Short-term | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value per share (in USD per share) | $ 28.26 | $ 47.23 |
Service period (years) | 1 year | 1 year |
Performance-based | Long-term | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value per share (in USD per share) | $ 34.56 | $ 45.96 |
Service period (years) | 3 years | |
Performance-based | Long-term | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period (years) | 2 years | |
Performance-based | Long-term | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Service period (years) | 3 years |
Restructuring and Other - Addit
Restructuring and Other - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)employee | Sep. 30, 2017USD ($)employee | Sep. 30, 2018USD ($)employee | Sep. 30, 2017USD ($)employee | |
Reorganizations [Abstract] | ||||
Restructuring and other costs | $ 2,799 | $ 832 | $ 10,477 | $ 5,421 |
Severance charges | $ 1,600 | $ 300 | $ 5,900 | $ 3,800 |
Number of positions eliminated | employee | 30 | 15 | 113 | 128 |
Facilities relocation and downsizing expenses | $ 400 | $ 400 | $ 1,400 | $ 600 |
Integration expenses | $ 900 | $ 200 | $ 3,200 | $ 1,000 |
Restructuring and Other - Reser
Restructuring and Other - Reserve Activities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Beginning reserve balance | $ 2,452 | $ 1,824 |
Restructuring charges | 6,289 | 4,101 |
Other charges | 4,188 | 1,321 |
Non-cash restructuring and other | (686) | (182) |
Payments | (9,751) | (4,720) |
Ending reserve balance | $ 2,492 | $ 2,344 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Benefit from (provision for) income taxes | $ 4,265 | $ (791) | $ 1,868 | $ (795) | |
Income (loss) before income taxes | (2,345) | 4,245 | 225 | 11,795 | |
Benefit from (provision for) income taxes before discrete items | 932 | $ (1,973) | $ (105) | $ (4,517) | |
U.S. Statutory income tax rate | 21.00% | 35.00% | |||
Tax charge | $ 27,500 | ||||
Estimated charges related to deemed repatriation transition tax | 700 | $ (500) | (17,000) | ||
Estimated charges related to deemed repatriation transition tax, gross | 27,000 | ||||
Foreign tax credits | 10,000 | ||||
Estimated charges related to remeasurement of U.S. deferred tax assets and liabilities | 10,500 | ||||
Unrecognized tax benefits that would affect the effective tax rate if recognized | 30,800 | 30,800 | $ 33,900 | ||
Gross unrecognized tax benefits decrease in next 12 months | 6,900 | 6,900 | |||
Offset to deferred tax assets for unrecognized tax benefits | 15,500 | ||||
Estimated unrecognized tax benefits | $ 15,300 | $ 15,300 |
Income Taxes - Tax Provisions R
Income Taxes - Tax Provisions Reconciled to Recorded Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Benefit from (provision for) income taxes before discrete items | $ 932 | $ (1,973) | $ (105) | $ (4,517) |
Interest related to unrecognized tax benefits | 71 | 0 | (154) | (121) |
Benefit from (provision for) stock-based compensation, including ESPP dispositions | 112 | (363) | 86 | 1,934 |
Benefit from reversals of uncertain tax positions | 2,333 | 1,845 | 2,528 | 1,825 |
Benefit from (provision for) reassessment of taxes upon filing tax returns | 135 | (300) | 213 | (396) |
Benefit from (provision for) reassessment of taxes upon tax law change | 0 | 0 | (160) | 480 |
Benefit from (provision for) deemed repatriation transition tax | 682 | 0 | (540) | 0 |
Benefit from (provision for) income taxes | $ 4,265 | $ (791) | $ 1,868 | $ (795) |