Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 16, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'EFII | ' |
Entity Registrant Name | 'ELECTRONICS FOR IMAGING INC | ' |
Entity Central Index Key | '0000867374 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 47,041,375 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $200,730 | $283,996 |
Short-term investments, available for sale | 161,904 | 80,966 |
Accounts receivable, net of allowances of $14.0 and $12.9 million, respectively | 126,083 | 135,110 |
Inventories | 73,739 | 58,343 |
Income taxes receivable and deferred tax assets | 68,099 | 54,034 |
Other current assets | 26,877 | 20,843 |
Total current assets | 657,432 | 633,292 |
Property and equipment, net | 141,051 | 86,582 |
Goodwill | 225,552 | 219,456 |
Intangible assets, net | 68,350 | 80,244 |
Deferred tax assets | 57,646 | 52,587 |
Other assets | 3,459 | 2,810 |
Total assets | 1,153,490 | 1,074,971 |
Current liabilities: | ' | ' |
Accounts payable | 81,277 | 63,446 |
Deferred proceeds from property transaction | 182,870 | 180,216 |
Accrued and other liabilities | 90,224 | 79,018 |
Deferred revenue | 40,115 | 40,229 |
Income taxes payable and deferred tax liabilities | 5,809 | 7,562 |
Total current liabilities | 400,295 | 370,471 |
Imputed financing obligation | 11,267 | ' |
Noncurrent contingent and other liabilities | 9,398 | 17,742 |
Noncurrent deferred tax liabilities | 6,691 | 6,210 |
Noncurrent income taxes payable | 33,513 | 29,755 |
Total liabilities | 461,164 | 424,178 |
Commitments and contingencies (Note 8) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued and outstanding | ' | ' |
Common stock, $0.01 par value; 150,000 shares authorized; 81,291 and 79,193 shares issued, respectively | 813 | 792 |
Additional paid-in capital | 802,494 | 764,870 |
Treasury stock, at cost; 34,188 and 33,045 shares, respectively | -598,428 | -569,576 |
Accumulated other comprehensive income (loss) | -918 | 269 |
Retained earnings | 488,365 | 454,438 |
Total stockholders' equity | 692,326 | 650,793 |
Total liabilities and stockholders' equity | $1,153,490 | $1,074,971 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data in Thousands, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowances | $14 | $12.90 |
Preferred stock, par value | $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 | $0.01 | $0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 81,291 | 79,193 |
Treasury stock, shares | 34,188 | 33,045 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
Revenue | $178,823 | $154,074 | $530,480 | $478,031 | ||||
Cost of revenue | 81,610 | [1] | 70,997 | [1] | 241,424 | [1] | 217,495 | [1] |
Gross Profit | 97,213 | 83,077 | 289,056 | 260,536 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Research and development | 32,021 | [1] | 29,068 | [1] | 95,180 | [1] | 90,194 | [1] |
Sales and marketing | 34,885 | [1] | 30,329 | [1] | 102,133 | [1] | 93,480 | [1] |
General and administrative | 10,468 | [1] | 12,775 | [1] | 37,509 | [1] | 36,831 | [1] |
Restructuring and other (Note 11) | 960 | 2,280 | 4,097 | 4,530 | ||||
Amortization of identified intangibles | 4,767 | 4,619 | 14,640 | 13,434 | ||||
Total operating expenses | 83,101 | 79,071 | 253,559 | 238,469 | ||||
Income from operations | 14,112 | 4,006 | 35,497 | 22,067 | ||||
Interest and other income (expense), net | 882 | 1,555 | -2,464 | 800 | ||||
Income before income taxes | 14,994 | 5,561 | 33,033 | 22,867 | ||||
Benefit from income taxes | 1,147 | 7,850 | 894 | 3,783 | ||||
Net income | $16,141 | $13,411 | $33,927 | $26,650 | ||||
Net income per basic common share | $0.34 | $0.29 | $0.73 | $0.57 | ||||
Net income per diluted common share | $0.33 | $0.28 | $0.70 | $0.56 | ||||
Shares used in basic per-share calculation | 46,786 | 46,965 | 46,514 | 46,488 | ||||
Shares used in diluted per-share calculation | 48,622 | 48,009 | 48,387 | 47,670 | ||||
[1] | Includes stock-based compensation expense as follows: |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cost of revenue [Member] | ' | ' | ' | ' |
Recognized share-based compensation expense | $484 | $293 | $1,335 | $826 |
Research and development [Member] | ' | ' | ' | ' |
Recognized share-based compensation expense | 1,986 | 1,365 | 5,524 | 4,189 |
Sales and marketing [Member] | ' | ' | ' | ' |
Recognized share-based compensation expense | 1,303 | 790 | 3,138 | 2,404 |
General and administrative [Member] | ' | ' | ' | ' |
Recognized share-based compensation expense | $2,494 | $2,457 | $8,712 | $6,919 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $16,141 | $13,411 | $33,927 | $26,650 |
Net unrealized investment gains (losses): | ' | ' | ' | ' |
Unrealized holding gains (losses), net of tax provision of less than $0.1 million and tax benefit of less than $0.1 million for the three and nine months ended September 30, 2013, respectively, and tax provisions of $0.1 million for the three and nine months ended September 30, 2012 | 75 | 79 | -59 | 229 |
Reclassification adjustments for holding (gains) losses included in net income, net of tax provision of less than $0.1 million and tax benefit of less than $0.1 million for the three and nine months ended September 30, 2013 and tax benefits of less than $0.1 million for the three and nine months ended September 30, 2012 | 3 | -11 | -15 | -53 |
Net unrealized investment gains (losses) | 78 | 68 | -74 | 176 |
Currency translation adjustments, net of tax provisions of $0.1 and $0.3 million for the three and nine months ended September 30, 2013, respectively, and tax benefits of $0.2 million for the three and nine months ended September 30, 2012. | 2,407 | 1,105 | -1,165 | -458 |
Other | 114 | 67 | 52 | 100 |
Other comprehensive income | $18,740 | $14,651 | $32,740 | $26,468 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Unrealized holding gains (loses), tax benefits (provisions) | $0.10 | $0.10 | $0.10 | $0.10 |
Reclassification adjustments for (gains) losses included in net income, tax benefits (provisions) | 0.1 | 0.1 | 0.1 | 0.1 |
Currency translation adjustments, tax benefits (provisions) | $0.10 | $0.20 | $0.30 | $0.20 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $33,927 | $26,650 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 21,479 | 19,558 |
Deferred taxes | -13,996 | 1,317 |
Provision for bad debts and sales-related allowances | 5,252 | 1,689 |
Tax benefit from employee stock plans | 6,958 | 281 |
Excess tax benefit from stock-based compensation | -7,130 | -1,186 |
Provision for inventory obsolescence | 3,939 | 2,574 |
Stock-based compensation | 18,709 | 14,338 |
Contingent consideration payment related to business acquired | -619 | ' |
Non-cash acquisition-related compensation costs | 699 | 678 |
Other non-cash charges and credits | -429 | 1,219 |
Changes in operating assets and liabilities | -10,849 | -41,508 |
Net cash provided by operating activities | 57,940 | 25,610 |
Cash flows from investing activities: | ' | ' |
Purchases of short-term investments | -120,821 | -34,611 |
Proceeds from sales and maturities of short-term investments | 39,379 | 50,851 |
Purchases, net of proceeds from sales, of property and equipment | -32,725 | -5,319 |
Businesses purchased, net of cash acquired, and post-acquisition non-competition agreements | -4,533 | -45,133 |
Proceeds from notes receivable of acquired business | ' | 5,216 |
Net cash used for investing activities | -118,700 | -28,996 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock | 11,980 | 18,557 |
Purchases of treasury stock and net settlement of restricted stock | -28,852 | -18,392 |
Repayment of acquired business debt | -1,693 | -6,817 |
Contingent consideration payments related to businesses acquired | -9,998 | -382 |
Excess tax benefit from stock-based compensation | 7,130 | 1,186 |
Net cash used for financing activities | -21,433 | -5,848 |
Effect of foreign exchange rate changes on cash and cash equivalents | -1,073 | 46 |
Decrease in cash and cash equivalents | -83,266 | -9,188 |
Cash and cash equivalents at beginning of period | 283,996 | 120,058 |
Cash and cash equivalents at end of period | $200,730 | $110,870 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Basis of Presentation and Significant Accounting Policies | ' | ||||||||
1. 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”). 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 (“U.S. GAAP” or “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 for the year ended December 31, 2012. These condensed consolidated financial statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto for the year ended December 31, 2012, included in our Annual Report on 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. | |||||||||
In accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations, we revised previously issued post-acquisition financial information to reflect adjustments to the preliminary accounting for business acquisitions as if the adjustments occurred on the acquisition date. Accordingly, we have increased goodwill and accrued and other liabilities by $1.2 million in the aggregate at December 31, 2012 to reflect opening balance sheet adjustments related to our acquisitions of Creta Print S.L. (“Cretaprint”), Online Print Marketing Ltd. and DataCreation Pty Ltd. together doing business as Online Print Solutions (“OPS”), and Technique, Inc. and Technique Business Systems Limited (collectively, “Technique”). The purchase price allocation for the Technique acquisition is preliminary and subject to change within the measurement period as the valuation is finalized. We expect to continue to obtain information to assist us in finalizing the fair value of the net assets acquired on November 16, 2012, during the measurement period. | |||||||||
Restricted Cash | |||||||||
We are required to maintain restricted cash of $0.3 million as of September 30, 2013 related to customer agreements that were obtained through the alphagraph team GmbH (“Alphagraph”) acquisition, which is classified as a current asset because the restriction will be released within twelve months. | |||||||||
Recent Accounting Pronouncements | |||||||||
Fair Value Measurements. As a basis for considering market participant assumptions in fair value measurements, ASC 820, Fair Value Measurement, establishes a three-tier fair value hierarchy as more fully defined in Note 5, Investments and Fair Value Measurements. In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”). Effective in the first quarter of 2012, the primary provisions of ASU 2011-04 impacting us are the adoption of uniform terminology within U.S. GAAP and IFRS to reference fair value concepts, measuring the fair value of an equity instrument used as consideration in a business combination, and the following additional disclosures concerning fair value measurements classified as Level 3 within the fair value hierarchy: | |||||||||
• | quantitative information about the unobservable inputs used in the determination of Level 3 fair value measurements, | ||||||||
• | the valuation processes used in Level 3 fair value measurements, and | ||||||||
• | the sensitivity of Level 3 fair value measurements to changes in unobservable inputs and the interrelationships between those unobservable inputs. | ||||||||
Accordingly, the appropriate disclosures have been included in the accompanying condensed consolidated financial statements. | |||||||||
Other Comprehensive Income. In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income. Effective in the first quarter of 2012, we have opted to present total comprehensive income, the components of net income, and the components of other comprehensive income in two separate, but consecutive, statements. Under ASU 2011-05, we also have the option to present this information in a single continuous statement of comprehensive income. We previously presented the components of accumulated other comprehensive income (loss) (“OCI”) in the footnotes to our interim and annual financial statements and as a component of our statement of stockholders’ equity in our annual financial statements. | |||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires additional disclosures about amounts reclassified out of OCI by component. Effective in the first quarter of 2013, we are required to present, either on the face of the condensed consolidated statement of operations or in the notes to our condensed consolidated financial statements, significant amounts reclassified out of OCI by the respective line items of net income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, we are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. We have provided the required disclosure in Note 4, Balance Sheet Details, of the notes to condensed consolidated financial statements. | |||||||||
Goodwill and Other Indefinite-Lived Intangible Asset Impairment Assessment. In September 2011 and July 2012, the FASB issued new accounting guidance that simplifies the analysis of goodwill and other indefinite-lived intangible asset impairment. The new guidance allows a qualitative assessment to be performed to determine whether further impairment testing is necessary. These accounting standards became effective for the year ended December 31, 2012 with respect to the assessment of goodwill and will be effective for the year ending December 31, 2013 with respect to the assessment of other indefinite-lived intangible assets. These standards provide an alternative method for determining whether our goodwill and other indefinite-lived intangible assets have been impaired, which would not differ materially from the result of the detailed impairment testing methodology required by ASC 350-20-35, Goodwill – Subsequent Measurement. | |||||||||
Joint and Several Liability. In February 2013, the FASB issued ASU 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date, which requires accrual of obligations resulting from joint and several liability arrangements when the total amount of the obligation is fixed at the reporting date, as the sum of the following: | |||||||||
• | the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and | ||||||||
• | any additional amount the reporting entity expects to pay on behalf of its co-obligors. | ||||||||
If the amount of the obligation is not fixed at the reporting date, then the related liability should be accrued in accordance with ASC 450-20, Loss Contingencies. Examples of obligations subject to ASU 2013-04 include debt arrangements, legal settlements, and contractual obligations. | |||||||||
ASU 2013-04 will be effective in the first quarter of 2014. We are currently evaluating its impact on our financial condition and results of operations. | |||||||||
Balance Sheet Presentation of Unrecognized Tax Benefits. In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. We currently present our liability for estimated unrecognized tax benefits as noncurrent income taxes payable in our condensed consolidated balance sheets of $33.5 and $29.8 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||
We are required to reclassify unrecognized tax benefits as an offset to deferred tax assets to the extent of any net operating loss carryforwards, similar tax loss carryforwards, or tax credit carryforwards that are available at the reporting date under the tax law of the applicable tax jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. An exception would apply if the tax law of the tax jurisdiction does not require us to use, and we do not intend to use, the deferred tax asset for such purpose. | |||||||||
ASU 2013-11 will be effective in the first quarter of 2014 with early adoption allowed. We are currently determining the amount of the required reclassification between noncurrent income taxes payable and deferred tax assets. | |||||||||
Supplemental Cash Flow Information | |||||||||
Nine months ended | |||||||||
September 30, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Net cash paid for income taxes | $ | 9,670 | $ | 2,539 | |||||
Cash paid for interest expense | $ | 196 | $ | 95 | |||||
Acquisition-related activities: | |||||||||
Cash paid for acquisitions, excluding contingent consideration | $ | 4,596 | $ | 47,520 | |||||
Cash acquired in acquisitions, excluding restricted cash | (63 | ) | (2,987 | ) | |||||
Net cash paid for acquisitions | $ | 4,533 | $ | 44,533 | |||||
Non-cash investing and financing activities: | |||||||||
Non-cash acquisition of property under a build-to-suit lease | $ | 11,199 | $ | — | |||||
Property and equipment received, but accrued in accounts payable | 17,875 | 679 | |||||||
$ | 29,074 | $ | 679 | ||||||
Net cash paid for income taxes of $ 9.7 million includes $5.5 million related to the deferred proceeds from property transaction during the nine months ended September 30, 2013. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
2. Earnings Per Share | |||||||||||||||||
Net income per basic common share is computed using the weighted average number of common shares outstanding during the period, excluding non-vested restricted stock. Net income per diluted common share is computed using the weighted average number of common shares 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 restricted stock having a dilutive effect, shares to be purchased under our Employee Stock Purchase Plan (“ESPP”) having a dilutive effect, and non-vested restricted stock for which the performance criteria have been met. Any potential shares that are anti-dilutive as defined in ASC 260, Earnings Per Share, are excluded from the effect of dilutive securities. | |||||||||||||||||
ASC 260-10-45-48 requires that performance-based and market-based restricted stock and stock options 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, performance-based restricted stock units (“RSUs”), which vested on February 22, 2013, May 11, 2013, August 15, 2013, February 9, 2012, February 13, 2012, and May 23, 2012, based on achievement of specified performance criteria related to revenue and non-GAAP operating income targets, and market-based RSUs and stock options, which vested on January 14, February 7, February 11, February 13, March 25, and April 1, 2013, based on achievement of specified stock prices for defined periods, are included in the determination of net income per diluted common share as of the beginning of the period. Performance-based and market-based targets were not met with respect to any other RSUs or stock options as of September 30, 2013. | |||||||||||||||||
Basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012 are reconciled as follows (in thousands, except per share amounts): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic net income per share: | |||||||||||||||||
Net income available to common stockholders | $ | 16,141 | $ | 13,411 | $ | 33,927 | $ | 26,650 | |||||||||
Weighted average common shares outstanding | 46,786 | 46,965 | 46,514 | 46,488 | |||||||||||||
Basic net income per share | $ | 0.34 | $ | 0.29 | $ | 0.73 | $ | 0.57 | |||||||||
Dilutive net income per share: | |||||||||||||||||
Net income available to common stockholders | $ | 16,141 | $ | 13,411 | $ | 33,927 | $ | 26,650 | |||||||||
Weighted average common shares outstanding | 46,786 | 46,965 | 46,514 | 46,488 | |||||||||||||
Dilutive stock options and non-vested restricted stock | 1,836 | 1,044 | 1,873 | 1,182 | |||||||||||||
Weighted average common shares outstanding for purposes of computing diluted net income per share | 48,622 | 48,009 | 48,387 | 47,670 | |||||||||||||
Dilutive net income per share | $ | 0.33 | $ | 0.28 | $ | 0.7 | $ | 0.56 | |||||||||
Potential shares of common stock that are not included in the determination of diluted net income per share because they are anti-dilutive for the periods presented consist of weighted stock options, non-vested restricted stock, and shares to be purchased under our ESPP having an anti-dilutive effect, excluding any performance-based or market-based stock options and RSUs for which the performance criteria were not met, of less than 0.1 and 0.2 million for the three and nine months ended September 30, 2013, respectively, and 1.5 million for the three and nine months ended September 30, 2012. |
Acquisitions
Acquisitions | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisitions | ' | ||||||||
3. Acquisitions | |||||||||
We acquired privately-held J.J.F Enterprises, Inc., doing business as PrintLeader Software (“PrintLeader”), and privately-held GamSys Software SPRL (“GamSys”) during 2013, which have been integrated into our Productivity Software operating segment, for cash consideration of $3.6 million, net of cash acquired, plus additional future cash earnouts contingent on achieving certain performance targets and accounts receivable payments dependent on collections. | |||||||||
The fair value of the earnouts are currently estimated to be $3.0 million by applying the income approach in accordance with ASC 805-30-25-5. Key assumptions include discount rates of 4.5% and 6.0% and probability-adjusted levels of revenue. Probability-adjusted revenue is a significant input that is not observable in the market, which ASC 820-10-35 refers to as a Level 3 input. These contingent liabilities are reflected in the Condensed Consolidated Balance Sheet as of September 30, 2013, as current and noncurrent liabilities of $1.4 and $1.6 million, respectively. In accordance with ASC 805-30-35-1, changes in the fair value of contingent consideration subsequent to the acquisition date will be recognized in general and administrative expenses. | |||||||||
PrintLeader, headquartered in Palm City, Florida, provides business process automation software to small commercial and in-plant printing operations in North America. Support and operations of PrintLeader were integrated into the Productivity Software operating segment, which will also provide PrintSmith products to the PrintLeader customer base, while continuing to support existing PrintLeader customers. | |||||||||
GamSys, headquartered in LaReid, Belgium, provides business process automation software to the printing and packaging industries in the French-speaking regions of Europe and Africa. Support and operations of GamSys were integrated into the Productivity Software operating segment, which provides PrintSmith, Pace, Monarch, and Radius products to the GamSys customer base, while continuing to support existing GamSys customers. | |||||||||
These acquisitions were accounted for as purchase business combinations. In accordance with ASC 805, the purchase price has been allocated to the tangible and identifiable intangible assets acquired and liabilities assumed on the basis of their estimated fair values on the acquisition date based on the valuation performed by management with the assistance of a third party. Excess purchase consideration was recorded as goodwill. Factors contributing to a purchase price that results in goodwill include, but are not limited to, the retention of research and development personnel with skills to develop future technology, support personnel to provide maintenance services related to the products, a trained sales force capable of selling current and future products, the opportunity to cross-sell products of the acquired businesses to existing customers, the opportunity to sell PrintSmith, Pace, Monarch, and Radius products to customers of the acquired businesses, and the positive reputation of each of these companies in the market. | |||||||||
We engaged a third party valuation firm to aid management in its analysis of the fair value of GamSys. All estimates, key assumptions, and forecasts were either provided by or reviewed by us. While we chose to utilize a third party valuation firm, the fair value analyses and related valuations represent the conclusions of management and not the conclusions or statements of any third party. The analysis of the fair value of PrintLeader was determined internally. | |||||||||
The purchase price allocations are preliminary and subject to change within the respective measurement periods as valuations are finalized. We expect to continue to obtain information to assist us in finalizing the fair value of the net assets acquired at the respective acquisition dates during the respective measurement periods. Measurement period adjustments determined to be material will be applied retrospectively to the appropriate acquisition date in our condensed consolidated financial statements and, depending on the nature of the adjustments, our operating results subsequent to the respective acquisition date could be affected. | |||||||||
Valuation Methodologies | |||||||||
Intangible assets acquired consist of customer relationships, existing technology, trade names, and in-process research & development (“IPR&D”). Each intangible asset valuation methodology assumes a discount rate between 16.5% and 24.0%. | |||||||||
Customer Relationships. Customer relationships were valued using the excess earnings method, which is an income approach. The value of customer relationships lies in the generation of a consistent and predictable revenue source without incurring the costs normally required to develop the relationships. Customer relationships were valued by estimating the revenue attributable to existing customer relationships and probability-weighted in each forecast year to reflect the uncertainty of maintaining existing relationships based on historical attrition rates. | |||||||||
Trade Names were valued using the relief from royalty method with royalty rates based on various factors including an analysis of market data, comparable trade name agreements, and consideration of historical advertising dollars spent supporting the trade names. In particular, the GamSys trade name and the Partner and PartnerWeb product names are recognizable in the French speaking areas of Europe and Africa with strong industry recognition. | |||||||||
Existing Technology and IPR&D. Existing technology and IPR&D were valued using the relief from royalty method based on royalty rates for similar technologies. The value of existing technology is derived from consistent and predictable revenue, including the opportunity to cross-sell products of the acquired businesses to existing customers, and the avoidance of the costs associated with developing the technology. Revenue related to existing technology was adjusted in each forecast year to reflect the evolution of the technology and the cost of sustaining research and development required to maintain the technology. | |||||||||
Using each of these methodologies, the value of IPR&D was determined by estimating the cost to develop purchased IPR&D into commercially viable products, estimating the net cash flows resulting from the sale of those products, and discounting the net cash flows back to their present value using a discount rate of 17%. Project schedules were between 50% and 53% complete at the acquisition date based on management’s estimate of tasks completed and tasks to be completed to achieve technical and commercial feasibility depending on the measure of completion that is utilized. Project schedules were estimated to be between 72% and 75% complete at September 30, 2013. | |||||||||
IPR&D is subject to amortization after product launch over the product life or otherwise subject to impairment in accordance with acquisition accounting guidance. | |||||||||
The preliminary allocation of the purchase price to the assets acquired and liabilities assumed (in thousands) with respect to these acquisitions at their respective acquisition dates is summarized as follows: | |||||||||
Weighted | Purchase | ||||||||
average | Price | ||||||||
useful life | Allocation | ||||||||
Customer relationships | 5 years | $ | 2,130 | ||||||
Existing technology | 3 years | 650 | |||||||
Trade name | 3 years | 280 | |||||||
IPR&D | 3 years | 150 | |||||||
Goodwill | — | 6,245 | |||||||
9,455 | |||||||||
Net tangible liabilities | (1,230 | ) | |||||||
Total purchase price | $ | 8,225 | |||||||
Pro forma results of operations for these acquisitions have not been presented because they are not material to our consolidated results of operations. Goodwill, which represents the excess of the purchase price over the net tangible and intangible assets acquired, is not deductible for tax purposes. | |||||||||
GamSys generates revenue and incurs operating expenses in Euros. Upon consideration of the salient economic indicators discussed in ASC 830-10-55-5, Foreign Currency Matters, we consider the Euro to be the functional currency for GamSys. |
Balance_Sheet_Details
Balance Sheet Details | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Balance Sheet Details | ' | ||||||||
4. Balance Sheet Details | |||||||||
Inventories | |||||||||
Inventories, net of allowances, as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 37,063 | $ | 30,519 | |||||
Work in process | 4,394 | 5,847 | |||||||
Finished goods | 32,282 | 21,977 | |||||||
$ | 73,739 | $ | 58,343 | ||||||
Deferred Cost of Revenue | |||||||||
Deferred cost of revenue related to unrecognized revenue on shipments to customers of $3.7 and $2.2 million at September 30, 2013 and December 31, 2012, respectively, is included in other current assets in our condensed consolidated balance sheets. | |||||||||
Product Warranty Reserves | |||||||||
Product warranty reserve activities are summarized as follows (in thousands): | |||||||||
Balance at January 1, 2012 | $ | 8,877 | |||||||
Accrued warranty assumed upon acquisition of Cretaprint | 1,386 | ||||||||
Provisions, net of releases | 10,122 | ||||||||
Settlements | (10,227 | ) | |||||||
Balance at December 31, 2012 | $ | 10,158 | |||||||
Provisions, net of releases | 8,336 | ||||||||
Settlements | (8,068 | ) | |||||||
Balance at September 30, 2013 | $ | 10,426 | |||||||
Other Comprehensive Income | |||||||||
The components of OCI as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Net unrealized investment gains | 110 | $ | 184 | ||||||
Currency translation gains (losses) | (1,033 | ) | 132 | ||||||
Other | 5 | (47 | ) | ||||||
Accumulated other comprehensive income (loss) | $ | (918 | ) | $ | 269 | ||||
Amounts reclassified out of OCI were less than $0.1million, net of tax, for the three and nine months ended September 30, 2013 and 2012, and consisted of unrealized gains and losses from investments in debt securities and are reported within interest and other income (expense), net, in our condensed consolidated statements of operations. |
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Investments and Fair Value Measurements | ' | ||||||||||||||||||||||||
5. Investments and Fair Value Measurements | |||||||||||||||||||||||||
We invest our excess cash on deposit with major banks in money market, U.S. Treasury and government-sponsored entity, corporate debt, municipal, asset-backed, and mortgage-backed residential 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 amounts recorded in the 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 has approximated 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 market value with unrealized gains and losses reported as a separate component of OCI, adjusted for deferred income taxes. The credit portion of any other-than-temporary impairment is included in net income. Realized gains and losses on sales of financial instruments are recognized upon sale of the investments using the specific identification method. | |||||||||||||||||||||||||
Our available-for-sale short-term investments as of September 30, 2013 and December 31, 2012 are as follows (in thousands): | |||||||||||||||||||||||||
Amortized cost | Gross unrealized | Gross unrealized | Fair value | ||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
U.S. Government and sponsored entities | $ | 26,311 | $ | 32 | $ | (5 | ) | $ | 26,338 | ||||||||||||||||
Corporate debt securities | 109,422 | 181 | (78 | ) | 109,525 | ||||||||||||||||||||
Municipal securities | 6,892 | 3 | (5 | ) | 6,890 | ||||||||||||||||||||
Asset-backed securities | 13,498 | 62 | (14 | ) | 13,546 | ||||||||||||||||||||
Mortgage-backed securities – residential | 5,600 | 21 | (16 | ) | 5,605 | ||||||||||||||||||||
Total short-term investments | $ | 161,723 | $ | 299 | $ | (118 | ) | $ | 161,904 | ||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
U.S. Government and sponsored entities | $ | 17,371 | $ | 7 | $ | — | $ | 17,378 | |||||||||||||||||
Corporate debt securities | 40,218 | 194 | (17 | ) | 40,395 | ||||||||||||||||||||
Municipal securities | 1,710 | 3 | — | 1,713 | |||||||||||||||||||||
Asset-backed securities | 12,128 | 66 | (2 | ) | 12,192 | ||||||||||||||||||||
Mortgage-backed securities – residential | 9,237 | 63 | (12 | ) | 9,288 | ||||||||||||||||||||
Total short-term investments | $ | 80,664 | $ | 333 | $ | (31 | ) | $ | 80,966 | ||||||||||||||||
The fair value and duration that investments, including cash equivalents, have been in a gross unrealized loss position as of September 30, 2013 and December 31, 2012 are as follows (in thousands): | |||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | TOTAL | |||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
U.S. Government and sponsored entities | $ | 9,934 | $ | (5 | ) | $ | — | $ | — | $ | 9,934 | $ | (5 | ) | |||||||||||
Corporate debt securities | 42,966 | (78 | ) | — | — | 42,966 | (78 | ) | |||||||||||||||||
Municipal securities | 3,320 | (5 | ) | — | — | 3,320 | (5 | ) | |||||||||||||||||
Asset-backed securities | 6,425 | (14 | ) | — | — | 6,425 | (14 | ) | |||||||||||||||||
Mortgage-backed securities – residential | 2,324 | (13 | ) | 208 | (3 | ) | 2,532 | (16 | ) | ||||||||||||||||
Total | $ | 64,969 | $ | (115 | ) | $ | 208 | $ | (3 | ) | $ | 65,177 | $ | (118 | ) | ||||||||||
December 31, 2012 | |||||||||||||||||||||||||
U.S. Government and sponsored entities | $ | 15,791 | $ | (1 | ) | $ | — | $ | — | $ | 15,791 | $ | (1 | ) | |||||||||||
Corporate debt securities | 11,288 | (17 | ) | — | — | 11,288 | (17 | ) | |||||||||||||||||
Asset-backed securities | 1,959 | (2 | ) | — | — | 1,959 | (2 | ) | |||||||||||||||||
Mortgage-backed securities – residential | 1,263 | (7 | ) | (300 | ) | (4 | ) | 963 | (11 | ) | |||||||||||||||
Total | $ | 30,301 | $ | (27 | ) | $ | (300 | ) | $ | (4 | ) | $ | 30,001 | $ | (31 | ) | |||||||||
For fixed income securities that have unrealized losses as of September 30, 2013, we have determined that 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, 2013 were temporary in nature. | |||||||||||||||||||||||||
Amortized cost and estimated fair value of investments at September 30, 2013 is summarized by maturity date as follows (in thousands): | |||||||||||||||||||||||||
Amortized cost | Fair value | ||||||||||||||||||||||||
Mature in less than one year | $ | 64,072 | $ | 64,125 | |||||||||||||||||||||
Mature in one to three years | 97,651 | 97,779 | |||||||||||||||||||||||
Total short-term investments | $ | 161,723 | $ | 161,904 | |||||||||||||||||||||
For the three months ended September 30, 2013 and 2012, net realized losses of less than $0.1 million from sales of investments were recognized in interest and other income (expense), net. For the nine months ended September 30, 2013 and 2012, net realized losses of $0.1 million from sales of investments were recognized in interest and other income (expense), net. As of September 30, 2013 and December 31, 2012, net unrealized gains of $0.2 and $0.3 million, respectively, were included in OCI in the accompanying condensed consolidated balance sheets. | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy 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 that 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 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 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 the 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. The service providers then analyze their gathered pricing inputs and apply proprietary valuation techniques, including consensus pricing, weighted average pricing, distribution curve-based algorithms, or pricing models such as discounted cash flow techniques to provide a fair value for each security. | |||||||||||||||||||||||||
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 chose to utilize a third party pricing service, the impairment analysis and related valuations represent the conclusions of management and not the conclusions or statements of any third party. | |||||||||||||||||||||||||
Our investments and liabilities measured at fair value have been presented in accordance with the fair value hierarchy specified in ASC 820 as of September 30, 2013 and December 31, 2012 in order of liquidity as follows (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date using | |||||||||||||||||||||||||
Total | Quoted Prices | Significant | Unobservable | ||||||||||||||||||||||
in Active | other | Inputs | |||||||||||||||||||||||
Markets for | Observable | (Level 3) | |||||||||||||||||||||||
Identical Assets | Inputs | ||||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Money market funds | $ | 75,178 | $ | 75,178 | $ | — | $ | — | |||||||||||||||||
U.S. Government and sponsored entities | 26,338 | 10,125 | 16,213 | — | |||||||||||||||||||||
Corporate debt securities | 123,730 | — | 123,730 | — | |||||||||||||||||||||
Municipal securities | 6,890 | — | 6,890 | — | |||||||||||||||||||||
Asset-backed securities | 13,546 | — | 13,478 | 68 | |||||||||||||||||||||
Mortgage-backed securities – residential | 5,605 | — | 5,605 | — | |||||||||||||||||||||
$ | 251,287 | $ | 85,303 | $ | 165,916 | $ | 68 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Contingent consideration, current and noncurrent | $ | 30,881 | $ | — | $ | — | $ | 30,881 | |||||||||||||||||
Self-insurance | 2,422 | — | — | 2,422 | |||||||||||||||||||||
$ | 33,303 | $ | — | $ | — | $ | 33,303 | ||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Money market funds | $ | 112,714 | $ | 112,714 | $ | — | $ | — | |||||||||||||||||
U.S. Government and sponsored entities | 20,177 | 15,214 | 4,963 | — | |||||||||||||||||||||
Corporate debt securities | 42,069 | — | 42,069 | — | |||||||||||||||||||||
Municipal securities | 1,713 | — | 1,713 | — | |||||||||||||||||||||
Asset-backed securities | 12,192 | — | 12,139 | 53 | |||||||||||||||||||||
Mortgage-backed securities – residential | 9,288 | — | 9,288 | — | |||||||||||||||||||||
$ | 198,153 | $ | 127,928 | $ | 70,172 | $ | 53 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Contingent consideration, current and noncurrent | $ | 38,050 | $ | — | $ | — | $ | 38,050 | |||||||||||||||||
Self-insurance | 1,375 | — | — | 1,375 | |||||||||||||||||||||
$ | 39,425 | $ | — | $ | — | $ | 39,425 | ||||||||||||||||||
Money market funds consisted of $75.2 and $112.7 million, which have been classified as cash equivalents at September 30, 2013 and December 31, 2012, respectively. U.S. government and sponsored entities securities include $2.8 million, which have been classified as cash equivalents at December 31, 2012. Corporate debt securities include $14.2 and $1.7 million, which have been classified as cash equivalents at September 30, 2013 and December 31, 2012, 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 they 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, 2013 and 2012. | |||||||||||||||||||||||||
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. Predominately, asset-backed securities in the portfolio are collateralized by credit cards and auto loans. We also hold two asset-backed securities collateralized by mortgage loans. | |||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, one corporate debt instrument has been classified as Level 3 due to its significantly low level of trading activity. The rollforward of Level 3 investments is not provided due to immateriality. Changes in unobservable inputs to the fair value measurement of Level 3 investments on a recurring basis will not result in a significantly higher or lower fair value measurement. | |||||||||||||||||||||||||
We review investments in debt securities for other-than-temporary impairment whenever the fair value is less than the amortized cost and evidence indicates the investment’s carrying amount is not recoverable within a reasonable period of time. We assess the fair value of individual securities as part of our ongoing portfolio management. Our other-than-temporary assessment includes reviewing the length of time and extent to which fair value has been less than amortized cost, the seniority and durations of the securities, adverse conditions related to a security, industry, or sector, historical and projected issuer financial performance, credit ratings, issuer specific news, and other available relevant information. To determine whether an impairment is other-than-temporary, we consider whether we have the intent to sell the impaired security or if it will be more likely than not that we will be required to sell the impaired security before a market price recovery and whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. | |||||||||||||||||||||||||
In determining whether a credit loss existed, we used our best estimate of the present value of cash flows expected to be collected from each debt security. For asset-backed and mortgage-backed securities, cash flow estimates, including prepayment assumptions, we rely on data from widely accepted third party data sources or internal estimates. In addition to prepayment assumptions, cash flow estimates vary based on assumptions regarding the underlying collateral including default rates, recoveries, and changes in value. Expected cash flows were discounted using the effective interest rate implicit in the securities. | |||||||||||||||||||||||||
Based on this analysis, there were no other-than-temporary impairments, including credit-related impairments, during the nine months ended September 30, 2013 and 2012. Accumulated other-than-temporary credit-related impairments charged to retained earnings and interest and other expense, net, consists of the following (in thousands): | |||||||||||||||||||||||||
Impairments | Impairments | TOTAL | |||||||||||||||||||||||
Charged to | Recognized in | ||||||||||||||||||||||||
Retained | Other Income | ||||||||||||||||||||||||
Earnings | (Expense), Net | ||||||||||||||||||||||||
Accumulated impairments, net, attributable to assets still held at September 30, 2013 | $ | 58 | $ | 824 | $ | 882 | |||||||||||||||||||
Liabilities for Contingent Consideration | |||||||||||||||||||||||||
Acquisition-related liabilities for contingent consideration (i.e., earnouts) are related to the purchase business combinations of GamSys and PrintLeader in 2013; Technique, OPS, Metrics Sistemas de Informação, Serviços e Comércio Ltda. and Metrics Sistemas de Informação e Serviço Ltda. (collectively, “Metrics”), FXcolors (“FX Colors”), and Cretaprint in 2012; Alphagraph, Entrac Technologies, Inc. (“Entrac”); and Streamline Development, LLC (“Streamline”) in 2011; and Radius Solutions Incorporated (“Radius”) in 2010. The fair value of these earnouts is estimated to be $30.9 and $38.1 million at September 30, 2013 and December 31, 2012, respectively, by applying the income approach in accordance with ASC 805-30-25-5. Key assumptions include discount rates between 4.2% and 6.4%, executive retention relative to acquisition-related executive deferred compensation cost, and probability-adjusted revenue and gross profit levels. Probability-adjusted revenue and gross profit are significant inputs that are not observable in the market, which ASC 820-10-35 refers to as Level 3 inputs. Acquisition-related executive deferred compensation cost of $0.2 million, which is dependent on the continuing employment of a former shareholder of an acquired company, has been applied against the earnout as of September 30, 2013. These contingent liabilities have been reflected in the condensed consolidated balance sheet as of September 30, 2013, as a current and noncurrent liability of $21.7 and $9.2 million, respectively. | |||||||||||||||||||||||||
The Cretaprint, Streamline, OPS, and Alphagraph earnout performance probability percentages have been reduced or partially achieved in 2013, partially offset by increased performance probability percentages with respect to the 2013 Metrics and Technique earnout performance targets. The 2013 and 2012 Entrac earnout performance targets were not achieved, primarily due to the delayed launch of the M500 product, which is Entrac’s next generation device. The 2012 Alphagraph earnout performance target was partially achieved. Consequently, the net decrease in the fair value of contingent consideration was $1.5 and $2.1 million as of September 30, 2013 and December 31, 2012, respectively, partially offset by $1.1 and $1.7 million of earnout interest accretion related to all acquisitions, respectively. In accordance with ASC 805-30-35-1, changes in the fair value of contingent consideration subsequent to the acquisition date have been recognized in general and administrative expense. | |||||||||||||||||||||||||
Earnout payments during the nine months ended September 30, 2013 of $8.9, $0.7, and $1.0 million, respectively, related to previously accrued Cretaprint, Alphagraph, and Radius contingent consideration liabilities. Earnout payments during the year ended December 31, 2012 of $0.6, $0.3, and $0.1 million, respectively, related to previously accrued Streamline, Radius, and FX Colors contingent consideration liabilities. The difference between the $2.1 million accrued Radius earnout liability and the amount paid represents a disputed indemnification. | |||||||||||||||||||||||||
Changes in the fair value of contingent consideration are summarized as follows: | |||||||||||||||||||||||||
Liability for Contingent Consideration | |||||||||||||||||||||||||
Fair value of contingent consideration at January 1, 2012 | $ | 8,704 | |||||||||||||||||||||||
Fair value of Cretaprint contingent consideration at January 10, 2012 | 16,445 | ||||||||||||||||||||||||
Fair value of FX Colors contingent consideration at April 5, 2012 | 190 | ||||||||||||||||||||||||
Fair value of Metrics contingent consideration at April 10, 2012 | 5,582 | ||||||||||||||||||||||||
Fair value of OPS contingent consideration at October 1, 2012 | 2,600 | ||||||||||||||||||||||||
Fair value of Technique contingent consideration at November 16, 2012 | 4,410 | ||||||||||||||||||||||||
Deferred compensation expense dependent on future employment | 907 | ||||||||||||||||||||||||
Changes in valuation | (432 | ) | |||||||||||||||||||||||
Payments | (968 | ) | |||||||||||||||||||||||
Foreign currency adjustment | 612 | ||||||||||||||||||||||||
Fair value of contingent consideration at December 31, 2012 | $ | 38,050 | |||||||||||||||||||||||
Fair value of PrintLeader contingent consideration at May 8, 2013 | 389 | ||||||||||||||||||||||||
Fair value of GamSys contingent consideration at May 31, 2013 | 2,640 | ||||||||||||||||||||||||
Deferred compensation expense dependent on future employment | 699 | ||||||||||||||||||||||||
Changes in valuation | (432 | ) | |||||||||||||||||||||||
Payments | (10,616 | ) | |||||||||||||||||||||||
Foreign currency adjustment | 151 | ||||||||||||||||||||||||
Fair value of contingent consideration at September 30, 2013 | $ | 30,881 | |||||||||||||||||||||||
ASU 2011-04 requires a narrative description of the sensitivity of recurring fair value measurements to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. Since the primary inputs to the fair value measurement of the contingent consideration liability are the discount rate and probability-adjusted revenue, we reviewed the sensitivity of the fair value measurement to changes in these inputs. Probability-adjusted gross profit was not considered in the sensitivity analysis as its impact on the fair value measurement is conditional on achievement of the revenue performance targets and has significantly less impact on the overall potential earnout payment. | |||||||||||||||||||||||||
We assessed the probability of achieving the revenue performance targets for the contingent consideration associated with each acquisition at percentage levels between 70% 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 5% from the level assumed in the respective valuations would result in an increase in the earnout liability of $0.8 million or a decrease of $1.5 million resulting in a corresponding adjustment to general and administrative expense. Likewise, a change in the discount rate of one percentage point results in either an increase of or decrease of $0.2 million in the fair value of contingent consideration. | |||||||||||||||||||||||||
Liability for Self-Insurance | |||||||||||||||||||||||||
We are partially self-insured for certain losses related to employee medical and dental coverage, excluding employees covered by health maintenance organizations. We generally have an individual stop loss deductible of $125 thousand per enrollee unless specific exposures are separately insured. We have accrued a contingent liability of $2.4 and $1.4 million as of September 30, 2013 and December 31, 2012, respectively, which are not discounted, based upon examination of historical trends, our claims experience, industry claims experience, actuarial analysis, and estimates. The primary estimates used in the development of our accrual as of September 30, 2013 and December 31, 2012, include total enrollment (including employee contributions), population demographics, and historical claims costs incurred, which are significant inputs that are not observable in the market, which ASC 820-10-35 refers to as Level 3 inputs. | |||||||||||||||||||||||||
Changes in the contingent liability for self-insurance are summarized as follows: | |||||||||||||||||||||||||
Liability for Self-Insurance | |||||||||||||||||||||||||
Fair value of self-insurance liability at January 1, 2012 | $ | 1,640 | |||||||||||||||||||||||
Additions to reserve | 12,440 | ||||||||||||||||||||||||
Employee contributions | 2,340 | ||||||||||||||||||||||||
Less: insurance claims and administrative fees paid | (15,045 | ) | |||||||||||||||||||||||
Fair value of self-insurance liability at December 31, 2012 | $ | 1,375 | |||||||||||||||||||||||
Additions to reserve | 8,880 | ||||||||||||||||||||||||
Employee contributions | 1,739 | ||||||||||||||||||||||||
Less: insurance claims and administrative fees paid | (9,572 | ) | |||||||||||||||||||||||
Fair value of self-insurance liability at September 30, 2013 | $ | 2,422 | |||||||||||||||||||||||
While we believe these estimates are reasonable based on the information currently available, if actual trends, including the severity of claims and medical cost inflation, differ from our estimates, our consolidated financial position, results of operations, or cash flows could be impacted. ASU 2011-04 requires a narrative description of the sensitivity of recurring fair value measurements to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. Since the primary inputs to the fair value measurement of the self-insurance liability are the historical claims costs incurred, we reviewed the sensitivity of the fair value measurement to changes in medical cost assumptions and the severity of claims experienced by employees. A change in the severity of claims experienced or medical cost inflation of 10% results in either an increase or decrease in the fair value of the self-insurance liability of $0.2 million. | |||||||||||||||||||||||||
Fair Value of Derivative Instruments | |||||||||||||||||||||||||
We utilize the income approach to measure the fair value of our derivative assets and liabilities under ASC 820. 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 $19.9 and $3.2 million as of September 30, 2013 and December 31, 2012, respectively. The fair value of our derivative assets and liabilities that were designated for cash flow hedge accounting treatment having notional amounts of $2.3 and $2.7 million as of September 30, 2013 and December 31, 2012, respectively, was not material. |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Indebtedness | ' |
6. Indebtedness | |
Short-term borrowings of $6.9 million, which were assumed in the acquisition of Cretaprint on January 10, 2012, were repaid prior to September 30, 2013. Cretaprint indebtedness consisted primarily of notes payable to banks and lines of credit with weighted average interest rates of 5.0% and 4.5%, respectively. | |
Short-term liabilities to a related party of GamSys of $1.2 million, which were assumed in the acquisition of GamSys on May 31, 2013, were repaid prior to September 30, 2013. | |
Long-term indebtedness at December 31, 2012, excluding the noncurrent portion of contingent consideration, consisted of the remaining balance of $0.3 million, net of current portion, on a 6.75% building loan assumed upon the acquisition of Technique and $0.1 million of Alphagraph and Cretaprint capital lease liabilities. The Technique building mortgage, which was a ten-year loan, was fully paid during the nine months ended September 30, 2013. Long-term indebtedness at September 30, 2013 consists of approximately $0.2 million of capital lease obligations. |
Income_taxes
Income taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income taxes | ' | ||||||||||||||||
7. Income taxes | |||||||||||||||||
We recognized tax benefits of $1.1 and $0.9 million on pretax net income of $15.0 and $33.0 million during the three and nine months ended September 30, 2013, respectively, and $7.9 and $3.8 million on pretax income of $5.6 and $22.9 million during the three and nine months ended September 30, 2012, respectively. The provisions for income taxes before discrete items were $2.7 and $7.0 million during the three and nine months ended September 30, 2013, respectively, and $3.3 and $8.5 million during the three and nine months ended September 30, 2012, respectively. The decrease in the provision for income taxes before discrete items for the three and nine months ended September 30, 2013, compared with the same periods in the prior year, is due to the tax benefit related to the U.S. federal research and development credit recognized only in 2013 and increased earnings in jurisdictions with tax rates materially lower than the statutory U.S. tax rate. | |||||||||||||||||
Primary differences between our tax rate and the U.S. statutory rate of 35% include tax benefits related to credits for research and development costs in 2013, lower taxes on permanently reinvested foreign earnings, and the tax effects of stock-based compensation expense pursuant to ASC 718-740, Stock Compensation – Income Taxes, which are non-deductible for tax purposes. Pursuant to the American Taxpayer Relief Act of 2012, on January 2, 2013, we recognized a tax benefit of $3.2 million resulting from the renewal of the U.S. federal research and development tax credit retroactive to 2012. ASC 740-10-45-15, Income Taxes, requires that the effects of a change in tax law or rates be recognized in the period that includes the enactment date. | |||||||||||||||||
Our tax provision before discrete items is reconciled to our recorded benefit from income taxes for the three and nine months ended September 30, 2013 and 2012 as follows (in millions): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Provision for income taxes before discrete items | $ | 2.7 | $ | 3.3 | $ | 7 | $ | 8.5 | |||||||||
Interest related to unrecognized tax benefits | 0.1 | 0.1 | 0.3 | 0.3 | |||||||||||||
Benefit related to restructuring and other expenses | (0.2 | ) | (0.8 | ) | (1.1 | ) | (1.4 | ) | |||||||||
Benefit related to the 2012 U.S. federal research and development tax credit | — | — | (3.2 | ) | — | ||||||||||||
Deductions related to ESPP dispositions | (0.3 | ) | — | (0.6 | ) | (0.4 | ) | ||||||||||
Provision for (benefit from) reassessment of tax exposure related to filing of prior year tax returns | 0.4 | (0.8 | ) | 0.7 | (0.8 | ) | |||||||||||
Benefit from reversals of uncertain tax positions due to statute of limitation expirations | (3.5 | ) | (9.2 | ) | (3.7 | ) | (9.5 | ) | |||||||||
Benefit from reversals of accrued interest related to uncertain tax positions | (0.3 | ) | (0.5 | ) | (0.3 | ) | (0.5 | ) | |||||||||
Benefit from income taxes | $ | (1.1 | ) | $ | (7.9 | ) | $ | (0.9 | ) | $ | (3.8 | ) | |||||
The provision for reassessment of tax exposure related to the filing of prior year tax returns of $0.4 and $0.7 million for the three and nine months ended September 30, 2013, respectively, in the table above consists of $1.8 million of tax expense required to correctly state our prior year tax provision, which was partially offset by $1.4 and $1.1 million change in estimate for items recognized in the prior year. The prior year adjustment is required to correctly state our tax provision subsequent to the realignment of the ownership of our intellectual property that is described more fully below. We have determined that the impact of the prior year adjustment is immaterial to our condensed consolidated financial statements for the three and nine months ended September 30, 2013, as well as our expected annual results for the year ending December 31, 2013, which is based on our expected annual tax rates. Further, we have determined that the impact of the prior year adjustment is immaterial to our consolidated financial statements for the annual and interim periods for the year ended December 31, 2012. | |||||||||||||||||
We earn a significant amount of our operating income outside the U.S., which is deemed to be permanently reinvested in foreign jurisdictions. Most of this income is earned in the Netherlands, Spain, and the Cayman Islands, which are jurisdictions with tax rates materially lower than the statutory U.S. tax rate of 35%. In January 2012, we realigned the ownership of our Productivity Software and Cretaprint intellectual property to parallel our worldwide intellectual property ownership. Our effective tax rate could fluctuate significantly and be adversely impacted if anticipated earnings in the Netherlands, Spain, and the Cayman Islands are proportionally lower than current projections and earnings in all other jurisdictions are proportionally higher than current projections. | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, the gross unrecognized tax benefits were $33.5 and $29.8 million, respectively, which would affect the effective tax rate, if recognized. Over the next twelve months, our existing tax positions will continue to generate an increase in liabilities for unrecognized tax benefits. It is reasonably possible that our gross unrecognized tax benefits will decrease up to $5.2 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 statement of operations. | |||||||||||||||||
We recognize potential accrued interest and penalties related to unrecognized tax benefits as a component of the income tax benefit. As of September 30, 2013 and December 31, 2012, we accrued $1.2 million for potential payments of interest and penalties. | |||||||||||||||||
As of September 30, 2013, we were subject to examination by the Internal Revenue Service for the 2010-2012 tax years, state tax jurisdictions for the 2008-2012 tax years, and the Netherlands tax authority for the 2011 and 2012 tax years. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies | |
Contingent Consideration | |
We are required to make payments to acquired company stockholders based on the achievement of specified performance targets. The fair value of these earnouts is estimated to be $30.9 and $38.1 million at September 30, 2013 and December 31, 2012, respectively, by applying the income approach in accordance with ASC 805-30-25-5. These contingent liabilities have been reflected in the condensed consolidated balance sheet as of September 30, 2013, as a current and noncurrent liability of $21.7 and $9.2 million, respectively. The potential undiscounted amount of all future contingent consideration cash payments that we could be required to make, beyond amounts currently accrued, is $3.2 million as of September 30, 2013. | |
The Cretaprint, Streamline, OPS, and Alphagraph earnout performance probability percentages have been reduced or partially achieved in 2013, partially offset by increased performance probability percentages with respect to the 2013 Metrics and Technique earnout performance targets. The 2013 and 2012 Entrac earnout performance targets were not achieved, primarily due to the delayed launch of the M500 product, which is Entrac’s next generation device. The 2012 Alphagraph earnout performance target was partially achieved. Consequently, the net decrease in the fair value of contingent consideration was $1.5 and $2.1 million as of September 30, 2013 and December 31, 2012, respectively, partially offset by $1.1 and $1.7 million of earnout interest accretion related to all acquisitions, respectively. In accordance with ASC 805-30-35-1, changes in the fair value of contingent consideration subsequent to the acquisition date have been recognized in general and administrative expense. | |
Self-Insurance | |
We are partially self-insured for certain losses related to employee medical and dental coverage, excluding employees covered by health maintenance organizations. We generally have an individual stop loss deductible of $125 thousand per enrollee unless specific exposures are separately insured. We recognize our self-insurance expense for interim reporting purposes on a pro rata basis over the year in accordance with ASC 720-20-35-3, Insurance Costs. This approach treats usual recurring self-insurance losses as integral to annual reporting. Therefore, any expected changes in the incurred but not reported liability and related insurance recoverables that are not related to specific events are spread over the entire year. | |
We have accrued a contingent liability of $2.4 and $1.4 million as of September 30, 2013 and December 31, 2012, respectively, which represents an allocation of the ultimate claims cost that will be incurred through year end. The estimated liability is not discounted and is established based upon analysis of historical data supplied by our insurance carrier and an internal update of the actuarial analysis that we obtained at December 31, 2012. We will further refine our accrual at December 31, 2013 based upon appropriate actuarial analysis and estimates. The primary estimates used in the development of our accrual at September 30, 2013 include total enrollment (including employee contributions), population demographics, and historical claims costs incurred. While we believe these estimates are reasonable based on the information currently available, if actual trends, including the severity of claims and medical cost inflation, differ from our estimates, our consolidated financial position, results of operations, or cash flows could be impacted. | |
Lease Commitments and Contractual Obligations | |
As of September 30, 2013, we have leased certain of our current facilities under noncancellable operating lease agreements. We are required to pay property taxes, insurance, and nominal maintenance costs for certain of these facilities and any increases over the base year of these expenses on the remainder of our facilities. | |
On April 26, 2013, we purchased an approximately 119,000 square feet cold shell building located at 6750 Dumbarton Circle, Fremont, California, the related land, and certain other property improvements from John Arrillaga Survivor’s Trust, represented by John Arrillaga, Trustee, and Richard T. Peery Separate Property Trust, represented by Richard T. Peery, Trustee (the “Trusts”), for a total purchase price of $21.5 million. We have incurred build-out and construction costs, including furniture and equipment, of $17.2 million as of September 30, 2013, and expect to incur additional build-out and construction costs and expenses of approximately $4.0 million related to this facility by December 31, 2013. | |
We entered into a 15-year lease agreement with the Trusts, pursuant to which we leased approximately 58,000 square feet of an adjacent building located at 6700 Dumbarton Circle, Fremont, California. The lease commenced on September 1, 2013. Minimum lease payments are $18.4 million, net of a full abatement of rent for the first three years of the lease term. During the initial lease term, we also have certain rights of first refusal to (i) lease the remaining portion of the leased facility and/or (ii) purchase the facility. This location now serves as our worldwide corporate headquarters, as well as engineering, marketing, and administrative operations for our Fiery operating segment. Subsequent to September 30, 2013, we relocated our former headquarters to this location. | |
The leased facility is a cold shell requiring additional build-out and tenant improvements. The Trusts paid the costs of the build-out up to $4.5 million, including all structural improvements, and we will pay the costs of tenant improvements beyond that amount. We have incurred $4.9 million, including furniture and equipment, during the nine months ended September 30, 2013. The Trusts are responsible for any costs related to force majeure events that result in any damage to the facility. We are responsible for cost over-runs, if any, related to force majeure events including strikes, war, and material availability. Since we are responsible for cost overruns related to certain force majeure events, we are in substance offering an indemnification to the Trusts for events outside of our control. As such, we are deemed to be the accounting owner of the facility. As of September 30, 2013, we capitalized $11.1 million in property and equipment based on the estimated replacement cost of the unfinished space, including capitalized interest, reduced by accumulated depreciation. | |
Monthly lease payments are allocated between the land element of the lease, which is accounted for as an operating lease upon lease execution, and the imputed financing obligation. The imputed financing obligation is being amortized upon lease commencement in accordance with the effective interest method using the interest rate determined in accordance with the requirements of sale leaseback accounting. The imputed interest cost incurred during the construction period was capitalized as a component of the construction cost upon lease commencement. As of September 30, 2013, the imputed financing obligation in connection with the facility was $11.3 million, including accrued interest, which was classified as a long-term imputed financing obligation in our condensed consolidated balance sheet. If the requirements of sale leaseback accounting are satisfied, or at the end of the initial lease term, we will reverse the net book value of the building and the corresponding imputed financing obligation. | |
Legal Proceedings | |
We may be involved, from time to time, 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, 2013, we are subject to the various claims, lawsuits, investigations, or proceedings discussed below. | |
Componex Corporation (“Componex”) vs. EFI | |
Componex is a manufacturer of rolls used in machines handling continuous sheets of product and is a supplier for certain products in our VUTEk product line. On May 30, 2013, Componex filed an action in the United States District Court for the Western District of Wisconsin alleging that rolls supplied to EFI by another vendor infringe two patents held by Componex. Because this proceeding is still in its preliminary stages, we have not had an opportunity to complete our evaluation of the allegations, determine whether the loss is probable or reasonably possible or, if it is probable or reasonably possible, estimate the amount or range of loss that may be incurred. | |
Digitech Image Technologies, LLC (“Digitech”) Patent Litigation | |
On August 16, 2012, Digitech initiated litigation against EFI; Konica Minolta Holdings, Inc., Konica Minolta Holdings, U.S.A., Inc., and Konica Minolta Business Solutions, U.S.A., Inc. (collectively, “Konica Minolta”); and Xerox Corporation (“Xerox”) for infringement of a patent related to the creation of device profiles in digital image reproduction systems in the United States District Court for the Central District of California (“District Court”). | |
In addition to its own defenses, EFI has contractual obligations to indemnify certain of its customers to varying degrees subject to various circumstances, including Konica Minolta, Xerox, and others. We do not believe that our products infringe any valid claim of Digitech’s patent. We filed our response to the action, denying infringement and arguing that the patent at issue is not valid. We also moved to strike Digitech’s infringement contentions as lacking a proper basis. On July 31, 2013, the District Court granted summary judgment that the patent at issue is invalid. On August 6, 2013, the District Court entered judgment in favor of EFI and the other defendants. On August 28, 2013, Digitech filed its notice of appeal to the United States Court of Appeals (“Court of Appeals”) for the Federal Circuit. The appeal is currently pending. | |
We do not believe that Digitech’s patent or infringement claims based on that patent are valid and we do not believe it is probable that we will incur a material loss in this matter. It is reasonably possible, however, that our financial statements could be materially affected if the Court of Appeals reverses the District Court’s summary judgment and the District Court subsequently reaches a different conclusion from its decision that the patent is invalid. We are currently assessing whether we can provide a reasonable estimate of the range of loss. Such an evaluation includes, among other things, a determination of the total sales of the implicated systems in the United States and what a reasonable royalty, if any, might be under the circumstances. | |
Durst Fototechnik Technology GmbH (“Durst”) v. Electronics for Imaging GmbH (“EFI GmbH”) and EFI, et al. | |
On or about June 14, 2011, Durst filed an action against EFI GmbH and EFI in the Regional Court of Dusseldorf, Germany (“Regional Court”), alleging infringement of a German patent. The Regional Court preliminarily determined that the white base coat printing method in our GS and QS super-wide format printer product lines infringes the Durst patent. We appealed this decision to the Higher Regional Court of Dusseldorf. A hearing has been scheduled by the Higher Regional Court for March 20, 2014. | |
In a separate action filed in the German Federal Patent Court, we challenged the validity of the Durst patent, which we believe is invalid in light of prior art. German courts in Mannheim and Karlsruhe reached a similar conclusion in litigation involving a Durst utility model right on related technology. The Federal Patent Court held a hearing on the validity of the patent on October 23, 2013 and, at the conclusion of that hearing, orally declared the relevant claim in Durst’s patent are not valid. A written decision will follow and we expect to inform the Higher Regional Court of Dusseldorf that is considering Durst’s infringement allegations that the underlying patent claims have been declared invalid. | |
As such, we do not believe that there is any remaining basis for Durst’s infringement claims and we do not believe it is probable that we will incur a material loss in this matter. It is reasonably possible, however, that our financial statements could be materially affected if Durst appeals the Federal Patent Court’s decision, that decision is reversed, and if there is a subsequent assessment of damages or issuance of an injunction in the infringement action. We are currently assessing whether we can provide a reasonable estimate of the range of loss. Such an evaluation includes, among other things, a determination of the number of printers in Germany with the relevant feature at the time the court makes its final determination of infringement and an assessment of the cost related to an injunction, if an injunction is ultimately issued. | |
N.V. Perfectproof Europe (“Perfectproof”) v. EFI GmbH | |
On December 31, 2001, Perfectproof filed a complaint against BEST GmbH, currently EFI GmbH in the Tribunal de Commerce of Brussels, in Belgium (the “Commercial Court”), alleging unlawful unilateral termination of an alleged “exclusive” distribution agreement and claiming damages of approximately EU 0.6 million for such termination and additional damages of EU 0.3 million, or a total of approximately $1.1 million. In a judgment issued by the Commercial Court on June 24, 2002, the court declared that the distribution agreement was not “exclusive” and questioned its jurisdiction over the claim. Perfectproof appealed, and by decision dated November 30, 2004, the Court d’Appel of Brussels (the “Court of Appeal”) rejected the appeal and remanded the case to the Commercial Court. Subsequently, by judgment dated November 17, 2009, the Commercial Court dismissed the action for lack of jurisdiction of Belgian courts over the claim. On March 25, 2009, Perfectproof again appealed to the Court of Appeal. On November 16, 2010, the Court of Appeal declared, among other things, that the Commercial Court was competent to hear the case; that the “exclusive” agreement required reasonable notice prior to termination; and that Perfectproof is entitled to damages. The court appointed an expert to review the parties’ records and address certain questions relevant in assessing Perfectproof’s damages claim. On October 19, 2011, the expert issued its final report itemizing damages that are, in the aggregate, significantly less than the amount claimed by Perfectproof. The final determination of damages will not be binding until it is approved or adopted by the court. A decision of the Court of Appeal is expected by the end of 2013. | |
Although we do not believe that Perfectproof’s claims are founded and we do not believe it is probable that we will incur a material loss in this matter, it is reasonably possible that our financial statements could be materially affected by the court’s decision regarding the assessment of damages. The court may approve the expert’s final report and pronounce the final amount of damages to be paid by us, or require additional analysis, or consider further challenges to the final determination of damages. Accordingly, it is reasonably possible that we could incur a material loss in this matter. We estimate the range of loss to be between one dollar and $1.1 million. | |
KERAjet S.A (“Kerajet”) vs. Cretaprint | |
In May 2011, Jose Vicente Tomas Claramonte, the President of Kerajet, filed an action against Cretaprint in the Commercial Court in Valencia, Spain, alleging, among other things, that certain Cretaprint products infringe a patent held by Mr. Claramonte. In conjunction with our acquisition of Cretaprint, which closed on January 10, 2012, we assumed potential liability in this lawsuit. | |
A trial was held on October 4, 2012. On January 2, 2013, the court ruled in favor of Cretaprint concluding that the Cretaprint products do not infringe the Claramonte patent. Mr. Claramonte appealed the ruling on January 30, 2013. On July 15, 2013, the Spanish Court of Appeal affirmed the trial court’s conclusion that the Cretaprint products do not infringe the Claramonte patent. Mr. Claramonte did not appeal the ruling of the Spanish Court of Appeal. Accordingly, EFI no longer has any liability in this matter. | |
In conjunction with our defense of the claims by Mr. Claramonte, EFI filed affirmative actions against Mr. Claramonte in the United Kingdom (“U.K.”), Italy, and Germany alleging, among other things, that the Claramonte patent is not valid and/or that Cretaprint’s products do not infringe the patent. The court in the U.K. has issued a default judgment of non-infringement by Cretaprint. The actions in Italy and Germany remain pending. | |
Because the former owners of Cretaprint agreed to indemnify EFI against any potential liability in the event that Mr. Claramonte were to prevail in his action against Cretaprint, we accrued a contingent liability based on a reasonable estimate of the legal obligation that was probable as of the acquisition date and we accrued a contingent asset based on the portion of any liability for which the former Cretaprint owners would indemnify EFI. The net obligation accrued in the opening balance sheet on the acquisition date was EU 2.5 million (or approximately $3.3 million). We have reversed this liability during the three months ended September 30, 2013, which resulted in a reduction of general and administrative expense. | |
SkipPrint LLC (“SkipPrint”) Patent Litigation | |
SkipPrint is a non-practicing entity with certain rights to a number of patents related to certain web-to-print, order management, and business process automation software in the print industry. SkipPrint has alleged infringement of these patents by a number of companies. Although SkipPrint has neither made any claims against nor contacted EFI directly, SkipPrint has done so against several EFI customers, including customers to whom EFI has contractual indemnification obligations to varying degrees. Although we are not a party to any of the pending litigation and we do not believe that our software infringes the patents-at-issue, it is reasonably possible that we may be obligated to indemnify certain customers under these contractual arrangements. | |
Each of Skip Print’s actions against third parties is in its preliminary stages and EFI has neither been named as a party to any action nor been contacted directly by SkipPrint. Accordingly, we are not yet in position to fully evaluate the scope of the allegations, if any, that might be made against EFI or our products. We are therefore not in a position to determine whether a loss is probable or reasonably possible, or if it is probably or reasonably possible, the estimate of the amount or range of loss that may be incurred. Such an evaluation includes, among other things, an evaluation of our indemnification obligations, any circumstances or conditions limiting our indemnification obligations, our products that might be implicated, whether our software is combined or used with customer or other third party software, an evaluation of the patents at issue, and other matters. | |
Other Matters | |
As of September 30, 2013, we were also subject to various other claims, lawsuits, investigations, and proceedings in addition to those 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 certain of 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. |
Segment_Information_and_Geogra
Segment Information and Geographic Data | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information and Geographic Data | ' | ||||||||||||||||
9. Segment Information and Geographic Data | |||||||||||||||||
ASC 280, Segment Reporting, requires operating segment information to be presented based on the internal reporting used by the chief operating decision making group to allocate resources and evaluate operating segment performance. Our enterprise management processes use financial information that is closely aligned with our three operating segments at the gross profit level. Relevant discrete financial information is prepared at the gross profit level for each of our three operating segments, which is used by the chief operating decision making group to allocate resources and assess the performance of each operating segment. | |||||||||||||||||
We classify our revenue, operating segment profit (i.e., gross profit), assets, and liabilities in accordance with our operating segments as follows: | |||||||||||||||||
Industrial Inkjet, which consists of our VUTEk super-wide and EFI wide format industrial digital inkjet printers, Jetrion label and packaging digital inkjet printing systems, Cretaprint digital inkjet printers for ceramic tile decoration, and related ink, parts, and services. | |||||||||||||||||
We sell VUTEk super-wide format ultra-violet (“UV”), light emitting (“LED”), and textile dye sublimation industrial digital inkjet printers and ink to commercial photo labs, large sign shops, graphic screen printers, specialty commercial printers, and digital and billboard graphics providers serving the out-of-home advertising and industrial specialty print segments by printing point of purchase displays, signage, banners, fleet graphics, building wraps, art exhibits, customized architectural elements, and other large graphic displays. We sell EFI hybrid and flatbed UV wide format graphics printers to the mid-range industrial digital inkjet printer market. We sell Jetrion label and packaging digital inkjet printing systems, custom high-performance integration solutions, and specialty inks to the converting, packaging, and direct mail industries. We sell Cretaprint ceramic tile decoration digital inkjet printers to the ceramic tile industry. | |||||||||||||||||
Productivity Software, which consists of (i) our business process automation software, including Monarch, PSI, Logic, PrintSmith, and PrintFlow; (ii) Pace, our business process automation software that is available in a cloud-based environment; (iii) Digital StoreFront, our cloud-based e-commerce solution that allows print service providers to accept, manage, and process printing orders over the internet; (iv) Online Print Solutions, our cloud-based e-commerce software that provides web-to-print, publishing, and cross-media marketing solutions over the internet; (v) Radius, our business process automation software for label and packaging printers; (vi) PrintStream, our business process automation software for mailing and fulfillment services in the printing industry; (vii) Prism, Metrics, Technique, and GamSys, our business process automation solutions for the printing and packaging, publication, commercial, and direct marketing print industries; and (viii) Alphagraph, which includes business process automation solutions for the graphic arts industry. | |||||||||||||||||
We sell PrintSmith to small print-for-pay and small commercial print shops; Pace to medium and large commercial print shops, display graphics providers, in-plant printing operations, and government printing operations; Monarch to large commercial, publication, direct mail, and digital print shops; Radius to the label and packaging industry; Digital StoreFront and Online Print Solutions to customers desiring e-commerce, web-to-print, and cross-media marketing solutions; and PrintStream to Pace and Monarch customers that provide fulfillment services to their end customers. | |||||||||||||||||
Fiery, which consists of print servers, controllers, and digital front ends (“DFEs”) that transform digital copiers and printers into high performance networked printing devices for the office and commercial printing market. This operating segment is comprised of (i) stand-alone print servers connected to digital copiers and other peripheral devices, (ii) embedded and design-licensed solutions used in digital copiers and multi-functional devices, (iii) optional software integrated into our controller solutions such as Fiery Central, Command WorkStation, and MicroPress, (iv) Entrac, our self-service and payment solution, (v) PrintMe, our mobile printing application, and (vi) stand-alone software-based solutions such as our proofing and scanning solutions. | |||||||||||||||||
Our chief operating decision making group evaluates the performance of our operating segments based on net sales and gross profit. Gross profit for each operating segment includes revenue from sales to third parties and related cost of revenue attributable to the operating segment. Cost of revenue for each operating segment excludes certain expenses managed outside the operating segments consisting primarily of stock-based compensation expense. 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, income taxes, various non-recurring charges, and other separately managed general and administrative expenses. | |||||||||||||||||
Gross profit information, excluding stock-based compensation expense, for the three and nine months ended September 30, 2013 and 2012 is summarized as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Industrial Inkjet | |||||||||||||||||
Revenue | $ | 87,117 | $ | 79,096 | $ | 255,423 | $ | 234,008 | |||||||||
Gross profit | 34,675 | 31,842 | 101,822 | 93,544 | |||||||||||||
Gross profit percentages | 39.8 | % | 40.3 | % | 39.9 | % | 40 | % | |||||||||
Productivity Software | |||||||||||||||||
Revenue | $ | 28,532 | $ | 24,252 | $ | 84,770 | $ | 74,043 | |||||||||
Gross profit | 20,397 | 17,336 | 60,553 | 53,001 | |||||||||||||
Gross profit percentages | 71.5 | % | 71.5 | % | 71.4 | % | 71.6 | % | |||||||||
Fiery | |||||||||||||||||
Revenue | $ | 63,174 | $ | 50,726 | $ | 190,287 | $ | 169,980 | |||||||||
Gross profit | 42,625 | 34,192 | 128,016 | 114,817 | |||||||||||||
Gross profit percentages | 67.5 | % | 67.4 | % | 67.3 | % | 67.5 | % | |||||||||
A reconciliation of our segment gross profit to our condensed consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012 is as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Segment gross profit | $ | 97,697 | $ | 83,370 | $ | 290,391 | $ | 261,362 | |||||||||
Stock-based compensation expense | (484 | ) | (293 | ) | (1,335 | ) | (826 | ) | |||||||||
Gross profit | $ | 97,213 | $ | 83,077 | $ | 289,056 | $ | 260,536 | |||||||||
Tangible and intangible assets, net of liabilities, are summarized by operating segment as follows (in thousands): | |||||||||||||||||
September 30, 2013 | Industrial | Productivity | Fiery | ||||||||||||||
Inkjet | Software | ||||||||||||||||
Goodwill | $ | 61,273 | $ | 99,601 | $ | 64,678 | |||||||||||
Identified intangible assets, net | 35,333 | 30,795 | 2,222 | ||||||||||||||
Tangible assets, net of liabilities | 98,895 | (22,123 | ) | 30,959 | |||||||||||||
Net tangible and intangible assets | $ | 195,501 | $ | 108,273 | $ | 97,859 | |||||||||||
December 31, 2012 | |||||||||||||||||
Goodwill | $ | 60,745 | $ | 94,185 | $ | 64,526 | |||||||||||
Identified intangible assets, net | 41,103 | 36,141 | 3,000 | ||||||||||||||
Tangible assets, net of liabilities | 80,569 | (14,312 | ) | 26,304 | |||||||||||||
Net tangible and intangible assets | 182,417 | 116,014 | 93,830 | ||||||||||||||
Operating segment assets exclude corporate assets, such as cash, short-term investments, corporate headquarters facility, deferred proceeds from property transaction and related assets, imputed financing obligation, taxes receivable, and taxes payable. In accordance with ASC 805, we revised previously issued post-acquisition financial information to reflect adjustments to the preliminary accounting for business acquisitions as if the adjustments occurred on the acquisition date. Accordingly, we have increased goodwill by $0.8 and $0.4 million at December 31, 2012 to reflect opening balance sheet adjustments in the Industrial Inkjet and Productivity Software operating segments, respectively, related to our acquisitions of Cretaprint, OPS, and Technique. The purchase price allocation for the Technique acquisition is preliminary and subject to change within the measurement period as the valuation is finalized. We expect to continue to obtain information to assist us in finalizing the fair value of the net assets acquired on November 16, 2012, during the measurement period. | |||||||||||||||||
Geographic Areas | |||||||||||||||||
Our revenue originates in the U.S., China, the Netherlands, Germany, France, Japan, the U.K., Spain, Brazil, Australia, and New Zealand. We report revenue by geographic area based on ship-to destination. Shipments to some of our significant printer manufacturer/distributor customers are made to centralized purchasing and manufacturing locations, which in turn sell through to other locations. As a result of these factors, we believe that sales to certain geographic locations might be higher or lower, as the ultimate destinations are difficult to ascertain. | |||||||||||||||||
Our revenue by ship-to destination for the three and nine months ended September 30, 2013 and 2012 was as follows (in thousands): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Americas | $ | 102,393 | $ | 86,445 | $ | 296,806 | $ | 251,351 | |||||||||
Europe, Middle East, and Africa (“EMEA”) | 52,189 | 41,137 | 152,219 | 147,823 | |||||||||||||
Asia Pacific (“APAC”) | 24,241 | 26,492 | 81,455 | 78,857 | |||||||||||||
Japan | 4,349 | 7,471 | 17,383 | 22,290 | |||||||||||||
APAC, ex Japan | 19,892 | 19,021 | 64,072 | 56,567 | |||||||||||||
Total revenue | $ | 178,823 | $ | 154,074 | $ | 530,480 | $ | 478,031 | |||||||||
Derivatives_and_Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' |
Derivatives and Hedging | ' |
10. 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 the use of derivative financial instruments. These derivative financial instruments are used to hedge monetary assets and liabilities, including intercompany transactions, as well as reduce earnings and cash flow volatility resulting from shifts in market 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. ASC 815, Derivatives and Hedging, requires the fair value of all derivative instruments, including those embedded in other contracts, to be recorded as assets or liabilities in our condensed consolidated balance sheet. As permitted, foreign exchange contracts with notional amounts of $2.3 and $2.7 million and net asset/liability fair values that are immaterial have been designated for cash flow hedge accounting treatment at September 30, 2013 and December 31, 2012, respectively. The related cash flow impacts of our derivative contracts are reflected as cash flows from operating activities. | |
Our exposures are related to non-U.S. dollar-denominated revenue in Europe, Japan, the U.K., Latin America, China, Australia, and New Zealand and are primarily related to non-U.S. dollar-denominated operating expenses in Europe, India, Japan, the U.K., Brazil, and Australia. We hedge our operating expense cash flow exposure in Indian rupees. We hedge remeasurement exposure associated with Euro-denominated intercompany loans and Indian rupee nonmonetary assets. As of September 30, 2013, we had not entered into hedges against any other currency exposures, but we may consider hedging against movements in other currencies in the future. | |
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 (e.g., operating expense exposure in Indian rupees) or the settlement of the Euro-denominated intercompany loans. We do not believe there is a significant risk of loss from non-performance by the counterparty associated with these instruments because, by policy, we 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. | |
Foreign currency derivative contracts with notional amounts of $2.3 and $2.7 million and net asset/liability amounts that are immaterial have been designated as cash flow hedges of our Indian rupee operating expense exposure at September 30, 2013 and December 31, 2012, respectively. The changes in fair value of these contracts are reported as a component of OCI 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 statement 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. | |
Forward contracts not designated as hedging instruments with notional amounts of $17.6 and $0.5 million are used to hedge foreign currency balance sheet exposures at September 30, 2013 and December 31, 2012, respectively, consisting of Euro-denominated intercompany loans. They 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 (losses) on foreign currency forward contracts used to hedge balance sheet exposures are recognized in interest and other expense, net, in the same period as the remeasurement gain (loss) of the related foreign currency denominated assets and liabilities. |
Restructuring_and_Other
Restructuring and Other | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||
Restructuring and Other | ' | ||||||||
11. Restructuring and Other | |||||||||
During the three and nine months ended September 30, 2013 and 2012, cost reduction actions were taken to lower our quarterly operating expense run rate as we analyzed our cost structure. We announced restructuring plans to better align our costs with revenue levels and to reconcile our cost structure following our business acquisitions. These charges primarily relate to cost reduction actions taken to lower our quarterly operating expense run rate in the Fiery operating segment during the first quarter of 2013, targeted head count reductions in the Industrial Inkjet operating segment, and the integration of Productivity Software head count with acquired entities. Restructuring and other consists primarily of restructuring, severance, retention, facility downsizing and relocation, and acquisition integration expenses. Our restructuring and other plans are accounted for in accordance with ASC 420, Exit or Disposal Cost Obligations, ASC 712, Compensation – Non-Retirement Postemployment Benefits, and ASC 820. | |||||||||
We recognized restructuring and other charges of $1.0 and $4.1 million for the three and nine months ended September 30, 2013, respectively, and $2.3 and $4.5 million for the three and nine months ended September 30, 2012, respectively, primarily consisting of restructuring, severance, retention, integration, and charges to downsize or relocate our facilities. Restructuring and severance charges of $0.6 and $2.0 million related to 22 and 84 head count reductions for the three and nine months ended September 30, 2013, respectively, and $1.5 and $2.5 million related to 59 and 103 head count reductions for the three and nine months ended September 30, 2012, respectively. Severance costs include severance payments, related employee benefits, and outplacement or relocation costs. | |||||||||
Integration expenses of $0.2 and $1.2 million were incurred during the three and nine months ended September 30, 2013, respectively, primarily related to the Metrics, Cretaprint, OPS, Technique, and GamSys acquisitions, and $0.3 and $1.0 million were incurred during the three and nine months ended September 30, 2012, respectively, primarily related to the Metrics, Cretaprint, and Prism Group Holdings Limited (“Prism”) acquisitions. Retention expenses of $0.2 and $0.7 million were recognized during the three and nine months ended September 30, 2013 and 2012, respectively, associated with the Cretaprint acquisition. Facilities restructuring costs of $0.2 million were incurred during the nine months ended September 30, 2013, primarily related to the relocation of our corporate headquarters, Japan, Belgium, and certain manufacturing facilities, and $0.3 million was incurred during the three and nine months ended September 30, 2012, primarily due to facilities downsizing and relocations in the Americas primarily related to the Fiery operating segment. | |||||||||
Restructuring and other reserve activities for the nine months ended September 30, 2013 and 2012 are summarized as follows (in thousands): | |||||||||
2013 | 2012 | ||||||||
Reserve balance at January 1, | $ | 1,670 | $ | 1,870 | |||||
Restructuring | 1,254 | 2,203 | |||||||
Other | 2,843 | 2,327 | |||||||
Non-cash acquisition-related compensation and restructuring | (748 | ) | (678 | ) | |||||
Cash payments | (3,745 | ) | (3,513 | ) | |||||
Reserve balance at September 30, | $ | 1,274 | $ | 2,209 | |||||
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-based Compensation | ' | ||||||||||||||||
12. Stock-based Compensation | |||||||||||||||||
We account for stock-based payment awards in accordance with ASC 718, Stock Compensation, which requires the measurement and recognition of compensation expense for all equity awards granted to our employees and directors, including employee stock options, RSUs, and ESPP purchases related to all stock-based compensation plans based on the fair value of such awards on the date of grant. We amortize stock-based compensation cost on a graded vesting basis over the vesting period, after assessing the probability of achieving the requisite performance criteria with respect to performance-based awards. Stock-based compensation cost is recognized over the requisite service period for each separately vesting tranche of the award as though the award were, in substance, multiple awards. | |||||||||||||||||
Stock-based compensation expense related to stock options, ESPP purchases, and RSUs under ASC 718 for the three and nine months ended September 30, 2013 and 2012 is summarized as follows (in thousands): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stock -based compensation expense by type of award: | |||||||||||||||||
Employee stock options | $ | 170 | $ | 277 | $ | 804 | $ | 739 | |||||||||
Non-vested RSUs | 5,478 | 3,755 | 15,608 | 11,651 | |||||||||||||
ESPP | 619 | 873 | 2,297 | 1,948 | |||||||||||||
Total stock-based compensation | 6,267 | 4,905 | 18,709 | 14,338 | |||||||||||||
Tax effect on stock-based compensation | (2,530 | ) | (1,121 | ) | (6,278 | ) | (3,982 | ) | |||||||||
Net effect on net income | $ | 3,737 | $ | 3,784 | $ | 12,431 | $ | 10,356 | |||||||||
Valuation Assumptions | |||||||||||||||||
We use the Black-Scholes-Merton (“BSM”) option pricing model to value stock-based compensation for all equity awards, except market-based awards. Market-based awards are valued using the Monte Carlo valuation model. | |||||||||||||||||
The BSM model determines the fair value of stock-based payment awards based on the stock price on the date of grant and is affected by assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the term of the awards, expected term, interest rates, and actual and projected employee stock option exercise behavior. Expected volatility is based on the historical volatility of our stock over a preceding period commensurate with the expected term of the option. The expected term is based upon management’s consideration of the historical life, vesting period, and contractual period of the options granted. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yield was not considered in the option pricing formula since we do not pay dividends and have no current plans to do so in the future. | |||||||||||||||||
No stock options were granted during the three and nine months ended September 30, 2013. The estimated per share weighted average fair value of stock options granted and the assumptions used to estimate fair value for the three and nine months ended September 30, 2012 are as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, 2012 | September 30, 2012 | ||||||||||||||||
Weighted average fair value per share | $ | 16.57 | $ | 16.57 | |||||||||||||
Expected volatility | 43.8 | % | 43.8 | % | |||||||||||||
Risk-free interest rate | 0.5 | % | 0.5 | % | |||||||||||||
Expected term (in years) | 4 | 4 | |||||||||||||||
The estimated per share weighted average fair value of ESPP shares issued and the assumptions used to estimate fair value for the three and nine months ended September 30, 2013 and 2012 are as follows: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average fair value per share | $ | 8.31 | $ | 4.44 | $ | 7.53 | $ | 4.7 | |||||||||
Expected volatility | 25% - 35 | % | 32% - 41 | % | 25% - 38 | % | 32% - 49 | % | |||||||||
Risk-free interest rate | 0.1% - 0.4 | % | 0.1% - 0.2 | % | 0.1% - 0.4 | % | 0.1% - 0.2 | % | |||||||||
Expected term (in years) | 0.5 - 2.0 | 0.5 - 2.0 | 0.5 - 2.0 | 0.5 - 2.0 | |||||||||||||
Stock options outstanding and exercisable as of September 30, 2013 and activity for the nine months ended September 30, 2013 is as follows (in thousands, except weighted average exercise price and remaining contractual term): | |||||||||||||||||
Options | Weighted | Weighted | Aggregate | ||||||||||||||
outstanding | average | average | intrinsic value | ||||||||||||||
exercise price | remaining | ||||||||||||||||
contractual | |||||||||||||||||
term (years) | |||||||||||||||||
Options outstanding at January 1, 2013 | 1,536 | $ | 14.19 | ||||||||||||||
Options granted | — | — | |||||||||||||||
Options forfeited and expired | (41 | ) | 25.63 | ||||||||||||||
Options forfeited and expired, net of granted | (41 | ) | |||||||||||||||
Options exercised | (412 | ) | 11.75 | ||||||||||||||
Options outstanding at September 30, 2013 | 1,083 | $ | 14.68 | 3.11 | $ | 18,409 | |||||||||||
Options vested and expected to vest at September 30, 2013 | 1,064 | $ | 14.67 | 3.07 | $ | 18,102 | |||||||||||
Options exercisable at September 30, 2013 | 869 | $ | 14.61 | 2.63 | $ | 14,839 | |||||||||||
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 fiscal period and the option exercise price multiplied by the number of in-the-money stock options outstanding, vested and expected to vest, and exercisable at September 30, 2013. | |||||||||||||||||
Non-vested RSUs as of September 30, 2013 and activity during the nine months ended September 30, 2013 are summarized below (shares in thousands): | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
average grant | |||||||||||||||||
date fair value | |||||||||||||||||
Non-vested at January 1, 2013 | 2,345 | $ | 15.26 | ||||||||||||||
Restricted stock granted | 1,147 | 28.63 | |||||||||||||||
Restricted stock vested | (1,112 | ) | 14.28 | ||||||||||||||
Restricted stock forfeited | (304 | ) | 17.56 | ||||||||||||||
Non-vested at September 30, 2013 | 2,076 | $ | 22.84 | ||||||||||||||
The grant date fair value of RSUs vested during the nine months ended September 30, 2013 was $15.9 million. The aggregate intrinsic value at September 30, 2013 for RSUs expected to vest was $57.3 million and the remaining weighted average vesting period was 1.4 years. Aggregate intrinsic value for RSUs expected to vest represents the closing price per share of our common stock on the last trading day of the fiscal period, multiplied by the number of RSUs expected to vest as of September 30, 2013. | |||||||||||||||||
Amended and Restated 2009 Equity Incentive Award Plan | |||||||||||||||||
On June 4 2013, our stockholders approved amendments to the Amended and Restated 2009 Equity Incentive Award Plan to increase the number of shares of common stock reserved under the plan for future issuance from 7.0 to 11.6 million shares and authorized the granting of performance-based awards under the plan through the 2018 annual meeting of stockholders. | |||||||||||||||||
Amended and Restated 2000 Employee Stock Purchase Plan | |||||||||||||||||
On June 4, 2013, our stockholders approved amendments to the Amended and Restated 2000 Employee Stock Purchase Plan that increased the number of shares authorized for issuance pursuant to such plan by 2 million shares. The share increase was intended to ensure that we continue to have a sufficient reserve of common stock available under the ESPP to provide our eligible employees with the opportunity to acquire our common stock through participation in a payroll deduction-based ESPP designed to operate in compliance with Section 423 of the U.S. Internal Revenue Code (“IRC”). The amendment and restatement of the ESPP provides for an automatic increase in the number of shares reserved for issuance under the ESPP. | |||||||||||||||||
The ESPP is qualified under Section 423 of the IRC. Eligible employees may contribute from one to ten percent of their base compensation not to exceed ten percent of the employee’s earnings. Employees are not able to purchase more than the number of shares having a value greater than $25,000 in any calendar year, as measured at the beginning of the offering period under the ESPP. The purchase price shall be the lesser of 85% of the fair market value of the stock, either on the offering date or on the purchase date. The offering period shall not exceed 27 months beginning with the offering date. The ESPP provides for offerings of four consecutive, overlapping six-month offering periods, with a new offering period commencing on the first trading day on or after February 1 and August 1 of each year. | |||||||||||||||||
Performance-based and Market-based Stock Options and RSUs | |||||||||||||||||
RSUs granted during the nine months ended September 30, 2013 included 244,112 performance-based RSUs, which vest when specified performance criteria are met based on 2013 revenue and non-GAAP operating income targets; otherwise, they are forfeited. Non-GAAP operating income is defined as operating income determined in accordance with GAAP, adjusted to remove the impact of certain expenses. The grant date fair value was estimated to be $5.7 million, which is being amortized over their service periods of 1.0 year. The probability of achieving these awards was determined based on review of the actual results achieved by each business unit during the nine months ended September 30, 2013 compared with the 2013 operating plan as well as the overall strength of the business unit within EFI. Stock-based compensation expense was adjusted based on this probability assessment. As actual results are achieved during the year, the probability assessment will be updated and stock-based compensation expense adjusted accordingly. As of September 30, 2013, 229,774 performance-based RSUs remain outstanding. | |||||||||||||||||
RSUs granted during the nine months ended September 30, 2013 included 280,305 performance-based RSUs, which vest when specified performance criteria are met based on revenue and non-GAAP operating income targets during any four consecutive quarters between the first quarter of 2013 and the second quarter of 2017; otherwise, they are forfeited. Non-GAAP operating income is defined as operating income determined in accordance with GAAP, adjusted to remove the impact of certain expenses. The grant date fair value was estimated to be $8.6 million, which is being amortized over their average derived service periods of 4.0 years. The probability of achieving these awards was determined based on review of the actual results achieved by each business unit during the nine months ended September 30, 2013 compared with the 2013 operating plan as well as the overall strength of the business unit within EFI. Stock-based compensation expense was adjusted based on this probability assessment. As actual results are achieved, the probability assessment will be updated and stock-based compensation expense adjusted accordingly. As of September 30, 2013, 280,305 performance-based RSUs remain outstanding. | |||||||||||||||||
RSUs granted during the year ended December 31, 2012 included 282,850 performance-based RSUs, which vested when specified performance criteria were met based on 2012 revenue and non-GAAP operating income targets; otherwise, they were forfeited. Non-GAAP operating income is defined as operating income determined in accordance with GAAP, adjusted to remove the impact of certain expenses. The grant date fair value was estimated to be $4.9 million, which is being amortized over their service periods of 1.0 year. The performance criteria were achieved with respect to approximately 58% of these RSUs as of December 31, 2012. Accordingly, these RSUs vested on February 22 and May 11, 2013 when the associated service requirements were met and the achievement of the performance criteria was certified by the board of directors. | |||||||||||||||||
RSUs granted during the year ended December 31, 2012 included 191,594 performance-based RSUs, which vest when specified performance criteria are met based on revenue and non-GAAP operating income targets during any four consecutive quarters between the first quarter of 2012 and the second quarter of 2015; otherwise, they are forfeited. Non-GAAP operating income is defined as operating income determined in accordance with GAAP, adjusted to remove the impact of certain expenses. The grant date fair value was estimated to be $3.0 million, which is being amortized over their average derived service periods of 3.0 years. The probability of achieving these awards was determined based on review of the actual results achieved by each business unit during the nine months ended September 30, 2013 compared with the 2013 operating plan as well as the overall strength of the business unit within EFI. Stock-based compensation expense was adjusted based on this probability assessment. As actual results are achieved, the probability assessment will be updated and stock-based compensation expense adjusted accordingly. On August 15, 2013, 63,868 performance-based RSUs vested due to achievement of the threshold level of revenue and non-GAAP operating income targets during four consecutive quarters between the third quarter of 2012 and the second quarter of 2013. As of September 30, 2013, 109,393 performance-based RSUs remain outstanding. | |||||||||||||||||
RSUs granted during the year ended December 31, 2011 included 90,000 market-based RSUs, which vested when our average closing stock price exceeded defined multiples of the average closing stock price for 20 consecutive trading days preceding January 5, 2011. If these multiples were not achieved by January 5, 2018, the awards would have been forfeited. The grant date fair value was estimated to be $1.1 million and is being amortized over the average derived service period of 3.93 years. The average derived service period and total fair value were determined using the Monte Carlo valuation model based on our assumptions, which included a risk-free interest rate of 2.9% and an implied volatility of 40%. On April 1, 2013, February 7, 2013, and May 10, 2011, these market-based RSUs vested due to achievement of the threshold multiple of the average closing stock price for 20 consecutive trading days preceding January 5, 2011. As of September 30, 2013, no market-based RSUs remain unvested. | |||||||||||||||||
RSUs granted during the year ended December 31, 2011 included 323,600 performance-based RSUs, which vested when specified performance criteria were met based on 2011 revenue and non-GAAP operating income targets; otherwise, they would have been forfeited. Non-GAAP operating income is defined as operating income determined in accordance with GAAP, adjusted to remove the impact of certain expenses. The grant date fair value was estimated to be $5.0 million, which was being amortized over their service periods of 1.0 year. The performance criteria were achieved with respect to approximately 90% of these RSUs as of December 31, 2011. Accordingly, these RSUs vested on February 9 and 13, 2012 when the associated service requirements were met. | |||||||||||||||||
RSUs granted during the year ended December 31, 2011 included 195,156 performance-based RSUs, which vest when specified performance criteria are met based on revenue and non-GAAP operating income targets during any four consecutive quarters between the first quarter of 2011 and the second quarter of 2014; otherwise, they are forfeited. Non-GAAP operating income is defined as operating income determined in accordance with GAAP, adjusted to remove the impact of certain expenses. The grant date fair value was estimated to be $3.0 million, which is being amortized over their average derived service periods of 3.0 years. The probability of achieving these awards was determined based on review of the actual results achieved by each business unit during the nine months ended September 30, 2013 compared with the 2013 operating plan as well as the overall strength of the business unit within EFI. Stock-based compensation expense was adjusted based on this probability assessment. As actual results are achieved, the probability assessment will be updated and stock-based compensation expense adjusted accordingly. On May 23, 2012, 64,909 performance-based RSUs vested due to achievement of the threshold level of revenue and non-GAAP operating income targets during four consecutive quarters between the second quarter of 2011 and the first quarter of 2012. On August 15, 2013, 62,201 performance-based RSUs vested due to achievement of the next performance level. As of September 30, 2013, 53,939 performance-based RSUs remain outstanding. | |||||||||||||||||
RSUs and stock options granted during the year ended December 31, 2009 included 98,000 market-based RSUs and 294,076 market-based stock options. These awards vested when our average closing stock price exceeded defined multiples of the June 18 or August 28, 2009 closing stock prices for 20 consecutive trading days. If these multiples were not achieved by June 18 or August 28, 2016, respectively, the awards would have been forfeited. The grant date fair value was estimated to be $0.9 million for the RSUs and $1.7 million for the stock options, which were being amortized over their average derived service periods of 4.35 and 4.88 years, respectively. The average derived service period and total fair value were determined using the Monte Carlo valuation model based on our assumptions, which included a risk-free interest rate of 3.5% and 3.1%, respectively, and an implied volatility of 50%. On February 13, 2013, December 17, 2012, and January 10, 2011, an aggregate of 78,000 market-based RSUs vested due to achievement of the threshold multiple of the June 18 and August 28, 2009 closing stock prices, respectively, for 20 consecutive trading days. On March 25, 2013, February 11, 2013, January 14, 2013, and April 27, 2011, an aggregate of 190,716 market-based stock options vested due to achievement of the threshold multiple. As of September 30, 2013, no market-based RSUs and stock options remain unvested. | |||||||||||||||||
Stock options granted during the year ended December 31, 2009 included 32,674 performance-based stock options. These performance-based stock options vest when our annual non-GAAP return on equity exceeded defined thresholds of the 2008 non-GAAP return on equity. Non-GAAP return on equity is defined as non-GAAP net income divided by stockholders’ equity. Non-GAAP net income is defined as net income determined in accordance with GAAP adjusted to remove the impact of certain recurring and non-recurring expenses, and the tax effects of these adjustments. If these defined thresholds are not achieved by August 28, 2016, the stock options are forfeited. The grant date fair value was estimated to be $0.1 million, which is being amortized over the average derived service period of 3.71 years. On December 31, 2011, 5,298 of these performance-based stock options vested due to achievement of the initial non-GAAP return on equity growth threshold. As of September 30, 2013, 15,540 performance-based stock options remain unvested. |
Common_Stock_Repurchase_Progra
Common Stock Repurchase Programs | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
Common Stock Repurchase Programs | ' |
13. Common Stock Repurchase Programs | |
On August 31, 2012, the board of directors approved the repurchase of $100 million of outstanding common stock. This authorization expires in February 2014. Under this publicly announced plan, we repurchased 1.3 million shares for an aggregate purchase price of $22.9 million during the year ended December 31, 2012. We repurchased 0.2 and 0.6 million shares for an aggregate purchase price of $5.0 and $15.0 million during the three and nine months ended September 30, 2013, respectively. | |
Our employees have the option to surrender shares of common stock to satisfy their tax withholding obligations that arise on the vesting of RSUs. In addition, certain employees can surrender shares to satisfy the exercise price of certain stock options and any tax withholding obligations incurred in connection with such exercises. Employees surrendered 0.2 and 0.5 million shares for an aggregate purchase price of $6.0 and $13.9 million for the three and nine months ended September 30, 2013, respectively, and 0.2 and 0.7 million shares for an aggregate purchase price of $2.6 and $12.0 million for the three and nine months ended September 30, 2012, respectively. | |
These repurchased shares are recorded as treasury stock and are accounted for under the cost method thereby reducing shares outstanding. None of these repurchased shares of common stock have been cancelled. Our buyback program is limited by SEC regulations and is subject to compliance with our insider trading policy. |
Accounts_Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2013 | |
Receivables [Abstract] | ' |
Accounts Receivable | ' |
14. Accounts Receivable | |
Financing Receivables | |
We had financing receivables of $2.4 and $2.3 million consisting of $1.3 and $0.9 million of sales-type lease receivables and $1.1 and $1.4 million of trade receivables having a contractual maturity in excess of 360 days at September 30, 2013 and December 31, 2012, respectively. Because we do not have a significant amount of financing receivables, credit quality is evaluated on the same basis as trade receivables. We have not experienced material amounts of past due financing receivables. | |
Accounts Receivable Sales Arrangements | |
In accordance with ASC 860-20, Transfers and Servicing, trade receivables are derecognized from our condensed consolidated balance sheet when sold to third parties upon determining that such receivables are presumptively beyond the reach of creditors in a bankruptcy proceeding. The 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. | |
We have facilities in Spain 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 with payment due dates of less than one year, which are secured by international letters of credit. Trade receivables sold under these facilities were $1.1 and $5.2 million during the three and nine months ended September 30, 2013, respectively, and $4.3 million during the year ended December 31, 2012, which approximates the cash received. | |
We have facilities in the U.S. that enable us to sell to third parties, on an ongoing basis, certain trade receivables with recourse. The trade receivables sold with recourse are generally short-term receivables with payment due dates of less than 30 days from the date of sale, which are subject to a servicing obligation. Trade receivables sold under these facilities were $2.0 and $8.9 million during the three and nine months ended September 30, 2013, respectively, and $2.1 million during the year ended December 31, 2012, 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, because such receivables are the result of an operating activity and the associated interest rate risk is de minimus. |
Deferred_Proceeds_from_Propert
Deferred Proceeds from Property Transaction | 9 Months Ended |
Sep. 30, 2013 | |
Real Estate [Abstract] | ' |
Deferred Proceeds from Property Transaction | ' |
15. Deferred Proceeds from Property Transaction | |
On November 1, 2012, we sold the 294,000 square foot building located at 303 Velocity Way in Foster City, California, which at that time served as our corporate headquarters, along with approximately four acres of land and certain other assets related to the property, to Gilead Sciences, Inc. (“Gilead”) for $179.7 million. We used the facility until Octobber 31, 2013, for which period rent was not required to be paid. We accounted for this transaction as a financing related to our continued use of the facility and a sublease receivable related to Gilead’s use of a portion of the facility. Our use of the facility during the rent-free period constituted a form | |
of continuing involvement that prevented gain recognition. We recorded interest expense on the financing obligation and increased the financing obligation by the same amount, which resulted in total deferred proceeds from property transaction of $182.9 million at September 30, 2013. We recorded sublease income at an implied market rate from Gilead and recorded a sublease receivable for the same amount. Because we vacated the facility during the fourth quarter of 2013, we have no continuing involvement with the property and will account for the transaction as a property sale during the fourth quarter of 2013 thereby recognizing a gain of approximately $117 million on the sale of the property. This amount represents the difference between the sales proceeds and the carrying value of the property and related assets as well as direct incremental costs associated with the sale. | |
The assets subject to this sale of $64.5 million as of September 30, 2013 include property and equipment, net, of $60.4 million and current assets of $4.1 million. The sold assets include the $56.9 million facility, $2.9 million of related land, and $2.1 million of leasehold and land improvements, net of accumulated depreciation of $1.5 million. The buildings and improvements are subject to depreciation over their normal useful lives until the property is no longer used by us. Current assets include $0.4 million of direct transaction costs, $0.5 million of previously capitalized lease financing and other costs, and an imputed sublease receivable of $3.2 million. | |
We incurred imputed financing and depreciation expense, net of imputed sublease income, of approximately $1.6 million through October 31, 2013, which commenced during the fourth quarter of 2012, until we vacated the building during the fourth quarter of 2013. We will recognize a gain on sale of building and land of approximately $117 million during the fourth quarter of 2013. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
16. Subsequent Event | |
On October 16, 2013, we acquired privately-held Metrix Software (“Metrix”), headquartered in Edmonds, Washington, for approximately $3.6 million in cash, plus additional future cash earnouts contingent on achieving certain performance targets. Metrix is a leading innovator in imposition solutions for estimating, planning, and integrating into prepress and postpress solutions and will be integrated into the Productivity Software operating segment. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
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”). 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 (“U.S. GAAP” or “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 for the year ended December 31, 2012. These condensed consolidated financial statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto for the year ended December 31, 2012, included in our Annual Report on 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. | ||||
In accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations, we revised previously issued post-acquisition financial information to reflect adjustments to the preliminary accounting for business acquisitions as if the adjustments occurred on the acquisition date. Accordingly, we have increased goodwill and accrued and other liabilities by $1.2 million in the aggregate at December 31, 2012 to reflect opening balance sheet adjustments related to our acquisitions of Creta Print S.L. (“Cretaprint”), Online Print Marketing Ltd. and DataCreation Pty Ltd. together doing business as Online Print Solutions (“OPS”), and Technique, Inc. and Technique Business Systems Limited (collectively, “Technique”). The purchase price allocation for the Technique acquisition is preliminary and subject to change within the measurement period as the valuation is finalized. We expect to continue to obtain information to assist us in finalizing the fair value of the net assets acquired on November 16, 2012, during the measurement period. | ||||
Restricted Cash | ' | |||
Restricted Cash | ||||
We are required to maintain restricted cash of $0.3 million as of September 30, 2013 related to customer agreements that were obtained through the alphagraph team GmbH (“Alphagraph”) acquisition, which is classified as a current asset because the restriction will be released within twelve months. | ||||
Fair Value Measurements | ' | |||
Fair Value Measurements. As a basis for considering market participant assumptions in fair value measurements, ASC 820, Fair Value Measurement, establishes a three-tier fair value hierarchy as more fully defined in Note 5, Investments and Fair Value Measurements. In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”). Effective in the first quarter of 2012, the primary provisions of ASU 2011-04 impacting us are the adoption of uniform terminology within U.S. GAAP and IFRS to reference fair value concepts, measuring the fair value of an equity instrument used as consideration in a business combination, and the following additional disclosures concerning fair value measurements classified as Level 3 within the fair value hierarchy: | ||||
• | quantitative information about the unobservable inputs used in the determination of Level 3 fair value measurements, | |||
• | the valuation processes used in Level 3 fair value measurements, and | |||
• | the sensitivity of Level 3 fair value measurements to changes in unobservable inputs and the interrelationships between those unobservable inputs. | |||
Accordingly, the appropriate disclosures have been included in the accompanying condensed consolidated financial statements. | ||||
Other Comprehensive Income | ' | |||
Other Comprehensive Income. In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income. Effective in the first quarter of 2012, we have opted to present total comprehensive income, the components of net income, and the components of other comprehensive income in two separate, but consecutive, statements. Under ASU 2011-05, we also have the option to present this information in a single continuous statement of comprehensive income. We previously presented the components of accumulated other comprehensive income (loss) (“OCI”) in the footnotes to our interim and annual financial statements and as a component of our statement of stockholders’ equity in our annual financial statements. | ||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires additional disclosures about amounts reclassified out of OCI by component. Effective in the first quarter of 2013, we are required to present, either on the face of the condensed consolidated statement of operations or in the notes to our condensed consolidated financial statements, significant amounts reclassified out of OCI by the respective line items of net income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, we are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. We have provided the required disclosure in Note 4, Balance Sheet Details, of the notes to condensed consolidated financial statements. | ||||
Goodwill and Other Indefinite-Lived Intangible Asset Impairment Assessment | ' | |||
Goodwill and Other Indefinite-Lived Intangible Asset Impairment Assessment. In September 2011 and July 2012, the FASB issued new accounting guidance that simplifies the analysis of goodwill and other indefinite-lived intangible asset impairment. The new guidance allows a qualitative assessment to be performed to determine whether further impairment testing is necessary. These accounting standards became effective for the year ended December 31, 2012 with respect to the assessment of goodwill and will be effective for the year ending December 31, 2013 with respect to the assessment of other indefinite-lived intangible assets. These standards provide an alternative method for determining whether our goodwill and other indefinite-lived intangible assets have been impaired, which would not differ materially from the result of the detailed impairment testing methodology required by ASC 350-20-35, Goodwill – Subsequent Measurement. | ||||
Joint and Several Liability | ' | |||
Joint and Several Liability. In February 2013, the FASB issued ASU 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date, which requires accrual of obligations resulting from joint and several liability arrangements when the total amount of the obligation is fixed at the reporting date, as the sum of the following: | ||||
• | the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and | |||
• | any additional amount the reporting entity expects to pay on behalf of its co-obligors. | |||
If the amount of the obligation is not fixed at the reporting date, then the related liability should be accrued in accordance with ASC 450-20, Loss Contingencies. Examples of obligations subject to ASU 2013-04 include debt arrangements, legal settlements, and contractual obligations. | ||||
ASU 2013-04 will be effective in the first quarter of 2014. We are currently evaluating its impact on our financial condition and results of operations. | ||||
Balance Sheet Presentation of Unrecognized Tax Benefits | ' | |||
Balance Sheet Presentation of Unrecognized Tax Benefits. In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. We currently present our liability for estimated unrecognized tax benefits as noncurrent income taxes payable in our condensed consolidated balance sheets of $33.5 and $29.8 million as of September 30, 2013 and December 31, 2012, respectively. | ||||
We are required to reclassify unrecognized tax benefits as an offset to deferred tax assets to the extent of any net operating loss carryforwards, similar tax loss carryforwards, or tax credit carryforwards that are available at the reporting date under the tax law of the applicable tax jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. An exception would apply if the tax law of the tax jurisdiction does not require us to use, and we do not intend to use, the deferred tax asset for such purpose. | ||||
ASU 2013-11 will be effective in the first quarter of 2014 with early adoption allowed. We are currently determining the amount of the required reclassification between noncurrent income taxes payable and deferred tax assets. | ||||
Computation of Net Income Per Common Share | ' | |||
ASC 260-10-45-48 requires that performance-based and market-based restricted stock and stock options 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, performance-based restricted stock units (“RSUs”), which vested on February 22, 2013, May 11, 2013, August 15, 2013, February 9, 2012, February 13, 2012, and May 23, 2012, based on achievement of specified performance criteria related to revenue and non-GAAP operating income targets, and market-based RSUs and stock options, which vested on January 14, February 7, February 11, February 13, March 25, and April 1, 2013, based on achievement of specified stock prices for defined periods, are included in the determination of net income per diluted common share as of the beginning of the period. Performance-based and market-based targets were not met with respect to any other RSUs or stock options as of September 30, 2013. | ||||
Segment Reporting | ' | |||
ASC 280, Segment Reporting, requires operating segment information to be presented based on the internal reporting used by the chief operating decision making group to allocate resources and evaluate operating segment performance. Our enterprise management processes use financial information that is closely aligned with our three operating segments at the gross profit level. Relevant discrete financial information is prepared at the gross profit level for each of our three operating segments, which is used by the chief operating decision making group to allocate resources and assess the performance of each operating segment. | ||||
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 the use of derivative financial instruments. These derivative financial instruments are used to hedge monetary assets and liabilities, including intercompany transactions, as well as reduce earnings and cash flow volatility resulting from shifts in market 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. ASC 815, Derivatives and Hedging, requires the fair value of all derivative instruments, including those embedded in other contracts, to be recorded as assets or liabilities in our condensed consolidated balance sheet. As permitted, foreign exchange contracts with notional amounts of $2.3 and $2.7 million and net asset/liability fair values that are immaterial have been designated for cash flow hedge accounting treatment at September 30, 2013 and December 31, 2012, respectively. The related cash flow impacts of our derivative contracts are reflected as cash flows from operating activities. | ||||
Our exposures are related to non-U.S. dollar-denominated revenue in Europe, Japan, the U.K., Latin America, China, Australia, and New Zealand and are primarily related to non-U.S. dollar-denominated operating expenses in Europe, India, Japan, the U.K., Brazil, and Australia. We hedge our operating expense cash flow exposure in Indian rupees. We hedge remeasurement exposure associated with Euro-denominated intercompany loans and Indian rupee nonmonetary assets. As of September 30, 2013, we had not entered into hedges against any other currency exposures, but we may consider hedging against movements in other currencies in the future. | ||||
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 (e.g., operating expense exposure in Indian rupees) or the settlement of the Euro-denominated intercompany loans. We do not believe there is a significant risk of loss from non-performance by the counterparty associated with these instruments because, by policy, we 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. | ||||
Foreign currency derivative contracts with notional amounts of $2.3 and $2.7 million and net asset/liability amounts that are immaterial have been designated as cash flow hedges of our Indian rupee operating expense exposure at September 30, 2013 and December 31, 2012, respectively. The changes in fair value of these contracts are reported as a component of OCI 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 statement 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. | ||||
Forward contracts not designated as hedging instruments with notional amounts of $17.6 and $0.5 million are used to hedge foreign currency balance sheet exposures at September 30, 2013 and December 31, 2012, respectively, consisting of Euro-denominated intercompany loans. They 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 (losses) on foreign currency forward contracts used to hedge balance sheet exposures are recognized in interest and other expense, net, in the same period as the remeasurement gain (loss) of the related foreign currency denominated assets and liabilities. |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Supplemental Cash Flow Information | ' | ||||||||
Supplemental Cash Flow Information | |||||||||
Nine months ended | |||||||||
September 30, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Net cash paid for income taxes | $ | 9,670 | $ | 2,539 | |||||
Cash paid for interest expense | $ | 196 | $ | 95 | |||||
Acquisition-related activities: | |||||||||
Cash paid for acquisitions, excluding contingent consideration | $ | 4,596 | $ | 47,520 | |||||
Cash acquired in acquisitions, excluding restricted cash | (63 | ) | (2,987 | ) | |||||
Net cash paid for acquisitions | $ | 4,533 | $ | 44,533 | |||||
Non-cash investing and financing activities: | |||||||||
Non-cash acquisition of property under a build-to-suit lease | $ | 11,199 | $ | — | |||||
Property and equipment received, but accrued in accounts payable | 17,875 | 679 | |||||||
$ | 29,074 | $ | 679 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
Basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012 are reconciled as follows (in thousands, except per share amounts): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic net income per share: | |||||||||||||||||
Net income available to common stockholders | $ | 16,141 | $ | 13,411 | $ | 33,927 | $ | 26,650 | |||||||||
Weighted average common shares outstanding | 46,786 | 46,965 | 46,514 | 46,488 | |||||||||||||
Basic net income per share | $ | 0.34 | $ | 0.29 | $ | 0.73 | $ | 0.57 | |||||||||
Dilutive net income per share: | |||||||||||||||||
Net income available to common stockholders | $ | 16,141 | $ | 13,411 | $ | 33,927 | $ | 26,650 | |||||||||
Weighted average common shares outstanding | 46,786 | 46,965 | 46,514 | 46,488 | |||||||||||||
Dilutive stock options and non-vested restricted stock | 1,836 | 1,044 | 1,873 | 1,182 | |||||||||||||
Weighted average common shares outstanding for purposes of computing diluted net income per share | 48,622 | 48,009 | 48,387 | 47,670 | |||||||||||||
Dilutive net income per share | $ | 0.33 | $ | 0.28 | $ | 0.7 | $ | 0.56 | |||||||||
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | ' | ||||||||
The preliminary allocation of the purchase price to the assets acquired and liabilities assumed (in thousands) with respect to these acquisitions at their respective acquisition dates is summarized as follows: | |||||||||
Weighted | Purchase | ||||||||
average | Price | ||||||||
useful life | Allocation | ||||||||
Customer relationships | 5 years | $ | 2,130 | ||||||
Existing technology | 3 years | 650 | |||||||
Trade name | 3 years | 280 | |||||||
IPR&D | 3 years | 150 | |||||||
Goodwill | — | 6,245 | |||||||
9,455 | |||||||||
Net tangible liabilities | (1,230 | ) | |||||||
Total purchase price | $ | 8,225 | |||||||
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Summary of Inventories | ' | ||||||||
Inventories, net of allowances, as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 37,063 | $ | 30,519 | |||||
Work in process | 4,394 | 5,847 | |||||||
Finished goods | 32,282 | 21,977 | |||||||
$ | 73,739 | $ | 58,343 | ||||||
Summary of Product Warranty Reserve Activities | ' | ||||||||
Product warranty reserve activities are summarized as follows (in thousands): | |||||||||
Balance at January 1, 2012 | $ | 8,877 | |||||||
Accrued warranty assumed upon acquisition of Cretaprint | 1,386 | ||||||||
Provisions, net of releases | 10,122 | ||||||||
Settlements | (10,227 | ) | |||||||
Balance at December 31, 2012 | $ | 10,158 | |||||||
Provisions, net of releases | 8,336 | ||||||||
Settlements | (8,068 | ) | |||||||
Balance at September 30, 2013 | $ | 10,426 | |||||||
Summary of Accumulated Other Comprehensive Income | ' | ||||||||
The components of OCI as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Net unrealized investment gains | 110 | $ | 184 | ||||||
Currency translation gains (losses) | (1,033 | ) | 132 | ||||||
Other | 5 | (47 | ) | ||||||
Accumulated other comprehensive income (loss) | $ | (918 | ) | $ | 269 | ||||
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Available-for-Sale Short-Term Investments | ' | ||||||||||||||||||||||||
Our available-for-sale short-term investments as of September 30, 2013 and December 31, 2012 are as follows (in thousands): | |||||||||||||||||||||||||
Amortized cost | Gross unrealized | Gross unrealized | Fair value | ||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
U.S. Government and sponsored entities | $ | 26,311 | $ | 32 | $ | (5 | ) | $ | 26,338 | ||||||||||||||||
Corporate debt securities | 109,422 | 181 | (78 | ) | 109,525 | ||||||||||||||||||||
Municipal securities | 6,892 | 3 | (5 | ) | 6,890 | ||||||||||||||||||||
Asset-backed securities | 13,498 | 62 | (14 | ) | 13,546 | ||||||||||||||||||||
Mortgage-backed securities – residential | 5,600 | 21 | (16 | ) | 5,605 | ||||||||||||||||||||
Total short-term investments | $ | 161,723 | $ | 299 | $ | (118 | ) | $ | 161,904 | ||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
U.S. Government and sponsored entities | $ | 17,371 | $ | 7 | $ | — | $ | 17,378 | |||||||||||||||||
Corporate debt securities | 40,218 | 194 | (17 | ) | 40,395 | ||||||||||||||||||||
Municipal securities | 1,710 | 3 | — | 1,713 | |||||||||||||||||||||
Asset-backed securities | 12,128 | 66 | (2 | ) | 12,192 | ||||||||||||||||||||
Mortgage-backed securities – residential | 9,237 | 63 | (12 | ) | 9,288 | ||||||||||||||||||||
Total short-term investments | $ | 80,664 | $ | 333 | $ | (31 | ) | $ | 80,966 | ||||||||||||||||
Summary of Fair Value and Duration of Investments, Including Cash Equivalents, that have been Classified in Gross Unrealized Loss Position | ' | ||||||||||||||||||||||||
The fair value and duration that investments, including cash equivalents, have been in a gross unrealized loss position as of September 30, 2013 and December 31, 2012 are as follows (in thousands): | |||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | TOTAL | |||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
U.S. Government and sponsored entities | $ | 9,934 | $ | (5 | ) | $ | — | $ | — | $ | 9,934 | $ | (5 | ) | |||||||||||
Corporate debt securities | 42,966 | (78 | ) | — | — | 42,966 | (78 | ) | |||||||||||||||||
Municipal securities | 3,320 | (5 | ) | — | — | 3,320 | (5 | ) | |||||||||||||||||
Asset-backed securities | 6,425 | (14 | ) | — | — | 6,425 | (14 | ) | |||||||||||||||||
Mortgage-backed securities – residential | 2,324 | (13 | ) | 208 | (3 | ) | 2,532 | (16 | ) | ||||||||||||||||
Total | $ | 64,969 | $ | (115 | ) | $ | 208 | $ | (3 | ) | $ | 65,177 | $ | (118 | ) | ||||||||||
December 31, 2012 | |||||||||||||||||||||||||
U.S. Government and sponsored entities | $ | 15,791 | $ | (1 | ) | $ | — | $ | — | $ | 15,791 | $ | (1 | ) | |||||||||||
Corporate debt securities | 11,288 | (17 | ) | — | — | 11,288 | (17 | ) | |||||||||||||||||
Asset-backed securities | 1,959 | (2 | ) | — | — | 1,959 | (2 | ) | |||||||||||||||||
Mortgage-backed securities – residential | 1,263 | (7 | ) | (300 | ) | (4 | ) | 963 | (11 | ) | |||||||||||||||
Total | $ | 30,301 | $ | (27 | ) | $ | (300 | ) | $ | (4 | ) | $ | 30,001 | $ | (31 | ) | |||||||||
Amortized Cost and Estimated Fair Value of Investments | ' | ||||||||||||||||||||||||
Amortized cost and estimated fair value of investments at September 30, 2013 is summarized by maturity date as follows (in thousands): | |||||||||||||||||||||||||
Amortized cost | Fair value | ||||||||||||||||||||||||
Mature in less than one year | $ | 64,072 | $ | 64,125 | |||||||||||||||||||||
Mature in one to three years | 97,651 | 97,779 | |||||||||||||||||||||||
Total short-term investments | $ | 161,723 | $ | 161,904 | |||||||||||||||||||||
Investments in Accordance with Fair Value Hierarchy | ' | ||||||||||||||||||||||||
Our investments and liabilities measured at fair value have been presented in accordance with the fair value hierarchy specified in ASC 820 as of September 30, 2013 and December 31, 2012 in order of liquidity as follows (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date using | |||||||||||||||||||||||||
Total | Quoted Prices | Significant | Unobservable | ||||||||||||||||||||||
in Active | other | Inputs | |||||||||||||||||||||||
Markets for | Observable | (Level 3) | |||||||||||||||||||||||
Identical Assets | Inputs | ||||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Money market funds | $ | 75,178 | $ | 75,178 | $ | — | $ | — | |||||||||||||||||
U.S. Government and sponsored entities | 26,338 | 10,125 | 16,213 | — | |||||||||||||||||||||
Corporate debt securities | 123,730 | — | 123,730 | — | |||||||||||||||||||||
Municipal securities | 6,890 | — | 6,890 | — | |||||||||||||||||||||
Asset-backed securities | 13,546 | — | 13,478 | 68 | |||||||||||||||||||||
Mortgage-backed securities – residential | 5,605 | — | 5,605 | — | |||||||||||||||||||||
$ | 251,287 | $ | 85,303 | $ | 165,916 | $ | 68 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Contingent consideration, current and noncurrent | $ | 30,881 | $ | — | $ | — | $ | 30,881 | |||||||||||||||||
Self-insurance | 2,422 | — | — | 2,422 | |||||||||||||||||||||
$ | 33,303 | $ | — | $ | — | $ | 33,303 | ||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Money market funds | $ | 112,714 | $ | 112,714 | $ | — | $ | — | |||||||||||||||||
U.S. Government and sponsored entities | 20,177 | 15,214 | 4,963 | — | |||||||||||||||||||||
Corporate debt securities | 42,069 | — | 42,069 | — | |||||||||||||||||||||
Municipal securities | 1,713 | — | 1,713 | — | |||||||||||||||||||||
Asset-backed securities | 12,192 | — | 12,139 | 53 | |||||||||||||||||||||
Mortgage-backed securities – residential | 9,288 | — | 9,288 | — | |||||||||||||||||||||
$ | 198,153 | $ | 127,928 | $ | 70,172 | $ | 53 | ||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Contingent consideration, current and noncurrent | $ | 38,050 | $ | — | $ | — | $ | 38,050 | |||||||||||||||||
Self-insurance | 1,375 | — | — | 1,375 | |||||||||||||||||||||
$ | 39,425 | $ | — | $ | — | $ | 39,425 | ||||||||||||||||||
Schedule of Accumulated Other-than-Temporary Credit-Related Impairments Charged to Retained Earnings and Interest and Other Expense Net | ' | ||||||||||||||||||||||||
Accumulated other-than-temporary credit-related impairments charged to retained earnings and interest and other expense, net, consists of the following (in thousands): | |||||||||||||||||||||||||
Impairments | Impairments | TOTAL | |||||||||||||||||||||||
Charged to | Recognized | ||||||||||||||||||||||||
Retained | in Other | ||||||||||||||||||||||||
Earnings | Income | ||||||||||||||||||||||||
(Expense), | |||||||||||||||||||||||||
Net | |||||||||||||||||||||||||
Accumulated impairments, net, attributable to assets still held at September 30, 2013 | $ | 58 | $ | 824 | $ | 882 | |||||||||||||||||||
Summary of Changes in Fair Value of Contingent Consideration | ' | ||||||||||||||||||||||||
Changes in the fair value of contingent consideration are summarized as follows: | |||||||||||||||||||||||||
Liability for Contingent Consideration | |||||||||||||||||||||||||
Fair value of contingent consideration at January 1, 2012 | $ | 8,704 | |||||||||||||||||||||||
Fair value of Cretaprint contingent consideration at January 10, 2012 | 16,445 | ||||||||||||||||||||||||
Fair value of FX Colors contingent consideration at April 5, 2012 | 190 | ||||||||||||||||||||||||
Fair value of Metrics contingent consideration at April 10, 2012 | 5,582 | ||||||||||||||||||||||||
Fair value of OPS contingent consideration at October 1, 2012 | 2,600 | ||||||||||||||||||||||||
Fair value of Technique contingent consideration at November 16, 2012 | 4,410 | ||||||||||||||||||||||||
Deferred compensation expense dependent on future employment | 907 | ||||||||||||||||||||||||
Changes in valuation | (432 | ) | |||||||||||||||||||||||
Payments | (968 | ) | |||||||||||||||||||||||
Foreign currency adjustment | 612 | ||||||||||||||||||||||||
Fair value of contingent consideration at December 31, 2012 | $ | 38,050 | |||||||||||||||||||||||
Fair value of PrintLeader contingent consideration at May 8, 2013 | 389 | ||||||||||||||||||||||||
Fair value of GamSys contingent consideration at May 31, 2013 | 2,640 | ||||||||||||||||||||||||
Deferred compensation expense dependent on future employment | 699 | ||||||||||||||||||||||||
Changes in valuation | (432 | ) | |||||||||||||||||||||||
Payments | (10,616 | ) | |||||||||||||||||||||||
Foreign currency adjustment | 151 | ||||||||||||||||||||||||
Fair value of contingent consideration at September 30, 2013 | $ | 30,881 | |||||||||||||||||||||||
Summary of Changes in Contingent Liability for Self-Insurance | ' | ||||||||||||||||||||||||
Changes in the contingent liability for self-insurance are summarized as follows: | |||||||||||||||||||||||||
Liability for Self-Insurance | |||||||||||||||||||||||||
Fair value of self-insurance liability at January 1, 2012 | $ | 1,640 | |||||||||||||||||||||||
Additions to reserve | 12,440 | ||||||||||||||||||||||||
Employee contributions | 2,340 | ||||||||||||||||||||||||
Less: insurance claims and administrative fees paid | (15,045 | ) | |||||||||||||||||||||||
Fair value of self-insurance liability at December 31, 2012 | $ | 1,375 | |||||||||||||||||||||||
Additions to reserve | 8,880 | ||||||||||||||||||||||||
Employee contributions | 1,739 | ||||||||||||||||||||||||
Less: insurance claims and administrative fees paid | (9,572 | ) | |||||||||||||||||||||||
Fair value of self-insurance liability at September 30, 2013 | $ | 2,422 | |||||||||||||||||||||||
Income_taxes_Tables
Income taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Tax Provision before Discrete Items Reconciled to Recorded Benefit from Income Taxes | ' | ||||||||||||||||
Our tax provision before discrete items is reconciled to our recorded benefit from income taxes for the three and nine months ended September 30, 2013 and 2012 as follows (in millions): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Provision for income taxes before discrete items | $ | 2.7 | $ | 3.3 | $ | 7 | $ | 8.5 | |||||||||
Interest related to unrecognized tax benefits | 0.1 | 0.1 | 0.3 | 0.3 | |||||||||||||
Benefit related to restructuring and other expenses | (0.2 | ) | (0.8 | ) | (1.1 | ) | (1.4 | ) | |||||||||
Benefit related to the 2012 U.S. federal research and development tax credit | — | — | (3.2 | ) | — | ||||||||||||
Deductions related to ESPP dispositions | (0.3 | ) | — | (0.6 | ) | (0.4 | ) | ||||||||||
Provision for (benefit from) reassessment of tax exposure related to filing of prior year tax returns | 0.4 | (0.8 | ) | 0.7 | (0.8 | ) | |||||||||||
Benefit from reversals of uncertain tax positions due to statute of limitation expirations | (3.5 | ) | (9.2 | ) | (3.7 | ) | (9.5 | ) | |||||||||
Benefit from reversals of accrued interest related to uncertain tax positions | (0.3 | ) | (0.5 | ) | (0.3 | ) | (0.5 | ) | |||||||||
Benefit from income taxes | $ | (1.1 | ) | $ | (7.9 | ) | $ | (0.9 | ) | $ | (3.8 | ) | |||||
Segment_Information_and_Geogra1
Segment Information and Geographic Data (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Summary of Gross Profit Information, Excluding Stock-Based Compensation Expense by Segment | ' | ||||||||||||||||
Gross profit information, excluding stock-based compensation expense, for the three and nine months ended September 30, 2013 and 2012 is summarized as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Industrial Inkjet | |||||||||||||||||
Revenue | $ | 87,117 | $ | 79,096 | $ | 255,423 | $ | 234,008 | |||||||||
Gross profit | 34,675 | 31,842 | 101,822 | 93,544 | |||||||||||||
Gross profit percentages | 39.8 | % | 40.3 | % | 39.9 | % | 40 | % | |||||||||
Productivity Software | |||||||||||||||||
Revenue | $ | 28,532 | $ | 24,252 | $ | 84,770 | $ | 74,043 | |||||||||
Gross profit | 20,397 | 17,336 | 60,553 | 53,001 | |||||||||||||
Gross profit percentages | 71.5 | % | 71.5 | % | 71.4 | % | 71.6 | % | |||||||||
Fiery | |||||||||||||||||
Revenue | $ | 63,174 | $ | 50,726 | $ | 190,287 | $ | 169,980 | |||||||||
Gross profit | 42,625 | 34,192 | 128,016 | 114,817 | |||||||||||||
Gross profit percentages | 67.5 | % | 67.4 | % | 67.3 | % | 67.5 | % | |||||||||
Reconciliation of Segment Gross Profit to Condensed Consolidated Statements of Operations | ' | ||||||||||||||||
A reconciliation of our segment gross profit to our condensed consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012 is as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Segment gross profit | $ | 97,697 | $ | 83,370 | $ | 290,391 | $ | 261,362 | |||||||||
Stock-based compensation expense | (484 | ) | (293 | ) | (1,335 | ) | (826 | ) | |||||||||
Gross profit | $ | 97,213 | $ | 83,077 | $ | 289,056 | $ | 260,536 | |||||||||
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): | |||||||||||||||||
September 30, 2013 | Industrial | Productivity | Fiery | ||||||||||||||
Inkjet | Software | ||||||||||||||||
Goodwill | $ | 61,273 | $ | 99,601 | $ | 64,678 | |||||||||||
Identified intangible assets, net | 35,333 | 30,795 | 2,222 | ||||||||||||||
Tangible assets, net of liabilities | 98,895 | (22,123 | ) | 30,959 | |||||||||||||
Net tangible and intangible assets | $ | 195,501 | $ | 108,273 | $ | 97,859 | |||||||||||
December 31, 2012 | |||||||||||||||||
Goodwill | $ | 60,745 | $ | 94,185 | $ | 64,526 | |||||||||||
Identified intangible assets, net | 41,103 | 36,141 | 3,000 | ||||||||||||||
Tangible assets, net of liabilities | 80,569 | (14,312 | ) | 26,304 | |||||||||||||
Net tangible and intangible assets | 182,417 | 116,014 | 93,830 | ||||||||||||||
Revenue by Ship-to Destination | ' | ||||||||||||||||
Our revenue by ship-to destination for the three and nine months ended September 30, 2013 and 2012 was as follows (in thousands): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Americas | $ | 102,393 | $ | 86,445 | $ | 296,806 | $ | 251,351 | |||||||||
Europe, Middle East, and Africa (“EMEA”) | 52,189 | 41,137 | 152,219 | 147,823 | |||||||||||||
Asia Pacific (“APAC”) | 24,241 | 26,492 | 81,455 | 78,857 | |||||||||||||
Japan | 4,349 | 7,471 | 17,383 | 22,290 | |||||||||||||
APAC, ex Japan | 19,892 | 19,021 | 64,072 | 56,567 | |||||||||||||
Total revenue | $ | 178,823 | $ | 154,074 | $ | 530,480 | $ | 478,031 | |||||||||
Restructuring_and_Other_Tables
Restructuring and Other (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||
Restructuring and Other Reserve Activities | ' | ||||||||
Restructuring and other reserve activities for the nine months ended September 30, 2013 and 2012 are summarized as follows (in thousands): | |||||||||
2013 | 2012 | ||||||||
Reserve balance at January 1, | $ | 1,670 | $ | 1,870 | |||||
Restructuring | 1,254 | 2,203 | |||||||
Other | 2,843 | 2,327 | |||||||
Non-cash acquisition-related compensation and restructuring | (748 | ) | (678 | ) | |||||
Cash payments | (3,745 | ) | (3,513 | ) | |||||
Reserve balance at September 30, | $ | 1,274 | $ | 2,209 | |||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Schedule of Stock-Based Compensation Expense | ' | ||||||||||||||||
Stock-based compensation expense related to stock options, ESPP purchases, and RSUs under ASC 718 for the three and nine months ended September 30, 2013 and 2012 is summarized as follows (in thousands): | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stock -based compensation expense by type of award: | |||||||||||||||||
Employee stock options | $ | 170 | $ | 277 | $ | 804 | $ | 739 | |||||||||
Non-vested RSUs | 5,478 | 3,755 | 15,608 | 11,651 | |||||||||||||
ESPP | 619 | 873 | 2,297 | 1,948 | |||||||||||||
Total stock-based compensation | 6,267 | 4,905 | 18,709 | 14,338 | |||||||||||||
Tax effect on stock-based compensation | (2,530 | ) | (1,121 | ) | (6,278 | ) | (3,982 | ) | |||||||||
Net effect on net income | $ | 3,737 | $ | 3,784 | $ | 12,431 | $ | 10,356 | |||||||||
Schedule of Stock Options Outstanding and Exercisable | ' | ||||||||||||||||
Stock options outstanding and exercisable as of September 30, 2013 and activity for the nine months ended September 30, 2013 is as follows (in thousands, except weighted average exercise price and remaining contractual term): | |||||||||||||||||
Options | Weighted | Weighted | Aggregate | ||||||||||||||
outstanding | average | average | intrinsic value | ||||||||||||||
exercise price | remaining | ||||||||||||||||
contractual | |||||||||||||||||
term (years) | |||||||||||||||||
Options outstanding at January 1, 2013 | 1,536 | $ | 14.19 | ||||||||||||||
Options granted | — | — | |||||||||||||||
Options forfeited and expired | (41 | ) | 25.63 | ||||||||||||||
Options forfeited and expired, net of granted | (41 | ) | |||||||||||||||
Options exercised | (412 | ) | 11.75 | ||||||||||||||
Options outstanding at September 30, 2013 | 1,083 | $ | 14.68 | 3.11 | $ | 18,409 | |||||||||||
Options vested and expected to vest at September 30, 2013 | 1,064 | $ | 14.67 | 3.07 | $ | 18,102 | |||||||||||
Options exercisable at September 30, 2013 | 869 | $ | 14.61 | 2.63 | $ | 14,839 | |||||||||||
Schedule of Non-Vested RSUs | ' | ||||||||||||||||
Non-vested RSUs as of September 30, 2013 and activity during the nine months ended September 30, 2013 are summarized below (shares in thousands): | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
average grant | |||||||||||||||||
date fair value | |||||||||||||||||
Non-vested at January 1, 2013 | 2,345 | $ | 15.26 | ||||||||||||||
Restricted stock granted | 1,147 | 28.63 | |||||||||||||||
Restricted stock vested | (1,112 | ) | 14.28 | ||||||||||||||
Restricted stock forfeited | (304 | ) | 17.56 | ||||||||||||||
Non-vested at September 30, 2013 | 2,076 | $ | 22.84 | ||||||||||||||
ESPP [Member] | ' | ||||||||||||||||
Schedule of Estimated Per Share Weighted Average Fair Value and Assumptions Used to Estimate Fair Value | ' | ||||||||||||||||
The estimated per share weighted average fair value of ESPP shares issued and the assumptions used to estimate fair value for the three and nine months ended September 30, 2013 and 2012 are as follows: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average fair value per share | $ | 8.31 | $ | 4.44 | $ | 7.53 | $ | 4.7 | |||||||||
Expected volatility | 25% - 35 | % | 32% - 41 | % | 25% - 38 | % | 32% - 49 | % | |||||||||
Risk-free interest rate | 0.1% - 0.4 | % | 0.1% - 0.2 | % | 0.1% - 0.4 | % | 0.1% - 0.2 | % | |||||||||
Expected term (in years) | 0.5 - 2.0 | 0.5 - 2.0 | 0.5 - 2.0 | 0.5 - 2.0 | |||||||||||||
Stock options [Member] | ' | ||||||||||||||||
Schedule of Estimated Per Share Weighted Average Fair Value and Assumptions Used to Estimate Fair Value | ' | ||||||||||||||||
The estimated per share weighted average fair value of stock options granted and the assumptions used to estimate fair value for the three and nine months ended September 30, 2012 are as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, 2012 | September 30, 2012 | ||||||||||||||||
Weighted average fair value per share | $ | 16.57 | $ | 16.57 | |||||||||||||
Expected volatility | 43.8 | % | 43.8 | % | |||||||||||||
Risk-free interest rate | 0.5 | % | 0.5 | % | |||||||||||||
Expected term (in years) | 4 | 4 | |||||||||||||||
Basis_of_Presentation_and_Sign3
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Post-acquisition adjustments related to business combination | ' | ' | $1,200,000 |
Restricted cash related to customer agreements | 300,000 | ' | ' |
Noncurrent income taxes payable | 33,513,000 | ' | 29,755,000 |
Net cash paid for income taxes | 9,670,000 | 2,539,000 | ' |
Deferred proceeds from property transaction [Member] | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Net cash paid for income taxes | $5,500,000 | ' | ' |
Basis_of_Presentation_and_Sign4
Basis of Presentation and Significant Accounting Policies - Summary of Supplemental Cash Flow Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental Cash Flow Elements [Abstract] | ' | ' |
Net cash paid for income taxes | $9,670 | $2,539 |
Cash paid for interest expense | 196 | 95 |
Acquisition-related activities: | ' | ' |
Cash paid for acquisitions, excluding contingent consideration | 4,596 | 47,520 |
Cash acquired in acquisitions, excluding restricted cash | -63 | -2,987 |
Net cash paid for acquisitions | 4,533 | 44,533 |
Non-cash investing and financing activities: | ' | ' |
Non-cash acquisition of property under a build-to-suit lease | 11,199 | ' |
Property and equipment received, but accrued in accounts payable | 17,875 | 679 |
Total non-cash investing and financing activities | $29,074 | $679 |
Earnings_Per_Share_Basic_and_D
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic net income per share: | ' | ' | ' | ' |
Net income available to common stockholders | $16,141 | $13,411 | $33,927 | $26,650 |
Weighted average common shares outstanding | 46,786 | 46,965 | 46,514 | 46,488 |
Basic net income per share | $0.34 | $0.29 | $0.73 | $0.57 |
Dilutive net income per share: | ' | ' | ' | ' |
Net income available to common stockholders | $16,141 | $13,411 | $33,927 | $26,650 |
Weighted average common shares outstanding | 46,786 | 46,965 | 46,514 | 46,488 |
Dilutive stock options and non-vested restricted stock | 1,836 | 1,044 | 1,873 | 1,182 |
Weighted average common shares outstanding for purposes of computing diluted net income per share | 48,622 | 48,009 | 48,387 | 47,670 |
Dilutive net income per share | $0.33 | $0.28 | $0.70 | $0.56 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | 0.1 | 1.5 | 0.2 | 1.5 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cash consideration | $4,533,000 | $45,133,000 |
Contingent consideration, current | 21,700,000 | ' |
Contingent consideration, noncurrent | 9,200,000 | ' |
Minimum [Member] | Earnouts [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Fair value discount rate | 4.20% | ' |
Maximum [Member] | Earnouts [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Fair value discount rate | 6.40% | ' |
JJF Enterprises and GamSys [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cash consideration | 3,600,000 | ' |
Fair value of earnouts | 3,000,000 | ' |
Contingent consideration, current | 1,400,000 | ' |
Contingent consideration, noncurrent | $1,600,000 | ' |
JJF Enterprises and GamSys [Member] | In Process Research And Developments [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Fair value discount rate | 17.00% | ' |
JJF Enterprises and GamSys [Member] | Minimum [Member] | Earnouts [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Fair value discount rate | 4.50% | ' |
JJF Enterprises and GamSys [Member] | Minimum [Member] | Acquired Intangible Assets [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Fair value discount rate | 16.50% | ' |
JJF Enterprises and GamSys [Member] | Minimum [Member] | In Process Research And Developments [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
IPR&D percent complete at acquisition date | 50.00% | ' |
IPR&D percent estimated to be complete at period end | 72.00% | ' |
JJF Enterprises and GamSys [Member] | Maximum [Member] | Earnouts [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Fair value discount rate | 6.00% | ' |
JJF Enterprises and GamSys [Member] | Maximum [Member] | Acquired Intangible Assets [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Fair value discount rate | 24.00% | ' |
JJF Enterprises and GamSys [Member] | Maximum [Member] | In Process Research And Developments [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
IPR&D percent complete at acquisition date | 53.00% | ' |
IPR&D percent estimated to be complete at period end | 75.00% | ' |
Acquisitions_Preliminary_Alloc
Acquisitions - Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | JJF Enterprises and GamSys [Member] | Customer relationships [Member] | Existing technology [Member] | Trade name [Member] | IPR&D [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Weighted average useful life | ' | ' | ' | '5 years | '3 years | '3 years | '3 years |
Purchase Price Allocation, intangible assets | $68,350 | $80,244 | ' | $2,130 | $650 | $280 | $150 |
Purchase Price Allocation, Goodwill | 225,552 | 219,456 | 6,245 | ' | ' | ' | ' |
Purchase Price Allocation | 9,455 | ' | ' | ' | ' | ' | ' |
Net tangible liabilities | -1,230 | ' | ' | ' | ' | ' | ' |
Total purchase price | $8,225 | ' | ' | ' | ' | ' | ' |
Balance_Sheet_Details_Summary_
Balance Sheet Details - Summary of Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Net [Abstract] | ' | ' |
Raw materials | $37,063 | $30,519 |
Work in process | 4,394 | 5,847 |
Finished goods | 32,282 | 21,977 |
Inventory net | $73,739 | $58,343 |
Balance_Sheet_Details_Addition
Balance Sheet Details - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Balance Sheet Related Disclosures [Abstract] | ' | ' | ' | ' | ' |
Deferred cost of revenue | $3.70 | ' | $3.70 | ' | $2.20 |
Reclassified amounts out of OCI, net of tax | $0.10 | $0.10 | $0.10 | $0.10 | ' |
Balance_Sheet_Details_Summary_1
Balance Sheet Details - Summary of Product Warranty Reserve Activities (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Warrants And Rights Note Disclosure [Abstract] | ' | ' |
Beginning Balance | $10,158 | $8,877 |
Accrued warranty assumed upon acquisition of Cretaprint | ' | 1,386 |
Provisions, net of releases | 8,336 | 10,122 |
Settlements | -8,068 | -10,227 |
Ending Balance | $10,426 | $10,158 |
Balance_Sheet_Details_Summary_2
Balance Sheet Details - Summary of Accumulated Other Comprehensive Income (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ' | ' |
Net unrealized investment gains | $110 | $184 |
Currency translation gains (losses) | -1,033 | 132 |
Other | 5 | -47 |
Accumulated other comprehensive income (loss) | ($918) | $269 |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements - Summary of Fair Value and Duration of Investments, Including Cash Equivalents, that have been Classified in Gross Unrealized Loss Position (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | $161,723 | $80,664 |
Gross unrealized gains | 299 | 333 |
Gross unrealized losses | -118 | -31 |
Fair value | 161,904 | 80,966 |
Less than 12 Months, Fair Value | 64,969 | 30,301 |
Less than 12 Months, Unrealized Losses | -115 | -27 |
More than 12 Months, Fair Value | 208 | -300 |
More than 12 Months, Unrealized Losses | -3 | -4 |
TOTAL, Fair Value | 65,177 | 30,001 |
TOTAL, Unrealized Losses | -118 | -31 |
U.S. Government and sponsored entities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 26,311 | 17,371 |
Gross unrealized gains | 32 | 7 |
Gross unrealized losses | -5 | ' |
Fair value | 26,338 | 17,378 |
Less than 12 Months, Fair Value | 9,934 | 15,791 |
Less than 12 Months, Unrealized Losses | -5 | -1 |
More than 12 Months, Fair Value | ' | ' |
More than 12 Months, Unrealized Losses | ' | ' |
TOTAL, Fair Value | 9,934 | 15,791 |
TOTAL, Unrealized Losses | -5 | -1 |
Corporate debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 109,422 | 40,218 |
Gross unrealized gains | 181 | 194 |
Gross unrealized losses | -78 | -17 |
Fair value | 109,525 | 40,395 |
Less than 12 Months, Fair Value | 42,966 | 11,288 |
Less than 12 Months, Unrealized Losses | -78 | -17 |
More than 12 Months, Fair Value | ' | ' |
More than 12 Months, Unrealized Losses | ' | ' |
TOTAL, Fair Value | 42,966 | 11,288 |
TOTAL, Unrealized Losses | -78 | -17 |
Municipal securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 6,892 | 1,710 |
Gross unrealized gains | 3 | 3 |
Gross unrealized losses | -5 | ' |
Fair value | 6,890 | 1,713 |
Less than 12 Months, Fair Value | 3,320 | ' |
Less than 12 Months, Unrealized Losses | -5 | ' |
More than 12 Months, Fair Value | ' | ' |
More than 12 Months, Unrealized Losses | ' | ' |
TOTAL, Fair Value | 3,320 | ' |
TOTAL, Unrealized Losses | -5 | ' |
Asset-backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 13,498 | 12,128 |
Gross unrealized gains | 62 | 66 |
Gross unrealized losses | -14 | -2 |
Fair value | 13,546 | 12,192 |
Less than 12 Months, Fair Value | 6,425 | 1,959 |
Less than 12 Months, Unrealized Losses | -14 | -2 |
More than 12 Months, Fair Value | ' | ' |
More than 12 Months, Unrealized Losses | ' | ' |
TOTAL, Fair Value | 6,425 | 1,959 |
TOTAL, Unrealized Losses | -14 | -2 |
Mortgage-backed securities - residential [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 5,600 | 9,237 |
Gross unrealized gains | 21 | 63 |
Gross unrealized losses | -16 | -12 |
Fair value | 5,605 | 9,288 |
Less than 12 Months, Fair Value | 2,324 | 1,263 |
Less than 12 Months, Unrealized Losses | -13 | -7 |
More than 12 Months, Fair Value | 208 | -300 |
More than 12 Months, Unrealized Losses | -3 | -4 |
TOTAL, Fair Value | 2,532 | 963 |
TOTAL, Unrealized Losses | ($16) | ($11) |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements - Amortized Cost and Estimated Fair Value of Investments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments Debt And Equity Securities [Abstract] | ' | ' |
Mature in less than one year, Amortized cost | $64,072 | ' |
Mature in one to three years, Amortized cost | 97,651 | ' |
Total short-term investments, Amortized cost | 161,723 | 80,664 |
Mature in less than one year, Fair value | 64,125 | ' |
Mature in one to three years, Fair value | 97,779 | ' |
Fair value | $161,904 | $80,966 |
Investments_and_Fair_Value_Mea4
Investments and Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Available-for-sale securities, net realized losses | $100,000 | $100,000 | $100,000 | $100,000 | ' | ' |
Net unrealized gains on sale of securities included in other comprehensive income | 200,000 | ' | 200,000 | ' | 300,000 | ' |
Cash equivalents and short term investments | 251,287,000 | ' | 251,287,000 | ' | 198,153,000 | ' |
Contingent consideration liability | 30,881,000 | ' | 30,881,000 | ' | 38,050,000 | 8,704,000 |
Acquisition-related executive deferred compensation | 200 | ' | 200 | ' | ' | ' |
Contingent liability, current | 21,700,000 | ' | 21,700,000 | ' | ' | ' |
Contingent liability, noncurrent | 9,200,000 | ' | 9,200,000 | ' | ' | ' |
Fair value of contingent consideration decreased, net | ' | ' | -619,000 | ' | ' | ' |
Earnout interest accretion | ' | ' | 1,100,000 | ' | 1,700,000 | ' |
Probability-adjusted revenue | ' | ' | 5.00% | ' | ' | ' |
Increase in earnout liability | 800,000 | ' | 800,000 | ' | ' | ' |
Decrease in earnout liability | 1,500,000 | ' | 1,500,000 | ' | ' | ' |
Increase or decrease in fair value contingent consideration | 200,000 | ' | 200,000 | ' | ' | ' |
Percentage of increase or decrease in the fair value of contingent consideration | 1.00% | ' | 1.00% | ' | ' | ' |
Stop loss deductible | ' | ' | 125,000 | ' | ' | ' |
Self-insurance | 2,422,000 | ' | 2,422,000 | ' | 1,375,000 | 1,640,000 |
Severity of claims experienced or medical cost inflation | ' | ' | 10.00% | ' | ' | ' |
Increase/Decrease in self-insurance liability | ' | ' | 200,000 | ' | ' | ' |
Notional amount of our derivative assets and liabilities | 19,900,000 | ' | 19,900,000 | ' | 3,200,000 | ' |
Designated for cash flow hedge [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Notional amount of our derivative assets and liabilities | 2,300,000 | ' | 2,300,000 | ' | 2,700,000 | ' |
Alphagraph [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Earnout payments | ' | ' | 700,000 | ' | ' | ' |
Streamline [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Earnout payments | ' | ' | ' | ' | 600,000 | ' |
Radius [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Contingent consideration liability | ' | ' | ' | ' | ' | 2,100,000 |
Earnout payments | ' | ' | 1,000,000 | ' | 300,000 | ' |
FX Colors [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Contingent consideration liability | ' | ' | ' | ' | 190,000 | ' |
Earnout payments | ' | ' | ' | ' | 100,000 | ' |
Date of acquisition agreement | ' | ' | ' | ' | 5-Apr-12 | ' |
Cretaprint [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Contingent consideration liability | ' | ' | ' | ' | 16,445,000 | ' |
Earnout payments | ' | ' | 8,900,000 | ' | ' | ' |
Date of acquisition agreement | ' | ' | ' | ' | 10-Jan-12 | ' |
Entrac, Cretaprint, Streamline, Alphagraph, And Metrics [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value of contingent consideration decreased, net | ' | ' | 1,500,000 | ' | ' | ' |
Entrac and Alphagraph [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value of contingent consideration decreased, net | ' | ' | ' | ' | 2,100,000 | ' |
Money market funds [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Cash equivalents and short term investments | 75,178,000 | ' | 75,178,000 | ' | 112,714,000 | ' |
Net Asset Value per share | $1 | ' | $1 | ' | $1 | ' |
U.S. Government and sponsored entities [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Cash equivalents and short term investments | 26,338,000 | ' | 26,338,000 | ' | 20,177,000 | ' |
U.S. Government and sponsored entities [Member] | Cash equivalents [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Cash equivalents and short term investments | ' | ' | ' | ' | 2,800,000 | ' |
Corporate debt securities [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Cash equivalents and short term investments | 123,730,000 | ' | 123,730,000 | ' | 42,069,000 | ' |
Corporate debt securities [Member] | Cash equivalents [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Cash equivalents and short term investments | 14,200,000 | ' | 14,200,000 | ' | 1,700,000 | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Probability of achieving revenue | 70.00% | ' | 70.00% | ' | ' | ' |
Minimum [Member] | Earnouts [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value discount rate | ' | ' | 4.20% | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Earnout payments | ' | ' | $3,200,000 | ' | ' | ' |
Probability of achieving revenue | 100.00% | ' | 100.00% | ' | ' | ' |
Maximum [Member] | Earnouts [Member] | ' | ' | ' | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value discount rate | ' | ' | 6.40% | ' | ' | ' |
Investments_and_Fair_Value_Mea5
Investments and Fair Value Measurements - Investments in Accordance with Fair Value Hierarchy (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | $251,287 | $198,153 | ' |
Contingent consideration, current and noncurrent | 30,881 | 38,050 | 8,704 |
Self-insurance | 2,422 | 1,375 | 1,640 |
Liabilities | 33,303 | 39,425 | ' |
Money market funds [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 75,178 | 112,714 | ' |
U.S. Government and sponsored entities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 26,338 | 20,177 | ' |
Corporate debt securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 123,730 | 42,069 | ' |
Municipal securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 6,890 | 1,713 | ' |
Asset-backed securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 13,546 | 12,192 | ' |
Mortgage-backed securities - residential [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 5,605 | 9,288 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 85,303 | 127,928 | ' |
Contingent consideration, current and noncurrent | ' | ' | ' |
Self-insurance | ' | ' | ' |
Liabilities | ' | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 75,178 | 112,714 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government and sponsored entities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 10,125 | 15,214 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | ' | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | ' | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset-backed securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | ' | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage-backed securities - residential [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | ' | ' | ' |
Significant other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 165,916 | 70,172 | ' |
Contingent consideration, current and noncurrent | ' | ' | ' |
Self-insurance | ' | ' | ' |
Liabilities | ' | ' | ' |
Significant other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | ' | ' | ' |
Significant other Observable Inputs (Level 2) [Member] | U.S. Government and sponsored entities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 16,213 | 4,963 | ' |
Significant other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 123,730 | 42,069 | ' |
Significant other Observable Inputs (Level 2) [Member] | Municipal securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 6,890 | 1,713 | ' |
Significant other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 13,478 | 12,139 | ' |
Significant other Observable Inputs (Level 2) [Member] | Mortgage-backed securities - residential [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 5,605 | 9,288 | ' |
Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 68 | 53 | ' |
Contingent consideration, current and noncurrent | 30,881 | 38,050 | ' |
Self-insurance | 2,422 | 1,375 | ' |
Liabilities | 33,303 | 39,425 | ' |
Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | ' | ' | ' |
Unobservable Inputs (Level 3) [Member] | U.S. Government and sponsored entities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | ' | ' | ' |
Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | ' | ' | ' |
Unobservable Inputs (Level 3) [Member] | Municipal securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | ' | ' | ' |
Unobservable Inputs (Level 3) [Member] | Asset-backed securities [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | 68 | 53 | ' |
Unobservable Inputs (Level 3) [Member] | Mortgage-backed securities - residential [Member] | ' | ' | ' |
Investments And Fair Value Measurements [Line Items] | ' | ' | ' |
Total Investments | ' | ' | ' |
Investments_and_Fair_Value_Mea6
Investments and Fair Value Measurements - Schedule of Accumulated Other-than-Temporary Credit-Related Impairments Charged to Retained Earnings and Interest and Other Expense Net (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Other Than Temporary Impairment Losses Investments [Abstract] | ' |
Impairments Charged to Retained Earnings | $58 |
Impairments Recognized in Other Income (Expense), Net | 824 |
TOTAL | $882 |
Investments_and_Fair_Value_Mea7
Investments and Fair Value Measurements - Summary of Changes in Fair Value of Contingent Consideration (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' |
Deferred compensation expense dependent on future employment | $200 | $200 | $699 | $678 | $907 |
Fair value of contingent consideration | ' | ' | 38,050 | 8,704 | 8,704 |
Changes in valuation | ' | ' | -432 | ' | -432 |
Payments | ' | ' | -10,616 | ' | -968 |
Foreign currency adjustment | ' | ' | 151 | ' | 612 |
Fair value of contingent consideration | 30,881 | ' | 30,881 | ' | 38,050 |
Cretaprint [Member] | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' |
Fair value of contingent consideration | ' | ' | ' | ' | 16,445 |
Date of acquisition agreement | ' | ' | ' | ' | 10-Jan-12 |
FX Colors [Member] | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' |
Fair value of contingent consideration | ' | ' | ' | ' | 190 |
Date of acquisition agreement | ' | ' | ' | ' | 5-Apr-12 |
Metrics [Member] | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' |
Fair value of contingent consideration | ' | ' | ' | 5,582 | 5,582 |
Date of acquisition agreement | ' | ' | ' | ' | 10-Apr-12 |
Online Print Solutions [Member] | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' |
Fair value of contingent consideration | ' | ' | ' | 2,600 | 2,600 |
Date of acquisition agreement | ' | ' | ' | ' | 1-Oct-12 |
Technique [Member] | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' |
Fair value of contingent consideration | ' | ' | ' | 4,410 | 4,410 |
Date of acquisition agreement | ' | ' | ' | ' | 16-Nov-12 |
Print Leader [Member] | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' |
Fair value of contingent consideration | ' | ' | 389 | ' | ' |
Date of acquisition agreement | ' | ' | 8-May-13 | ' | ' |
Gam Sys [Member] | ' | ' | ' | ' | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' |
Fair value of contingent consideration | ' | ' | $2,640 | ' | ' |
Date of acquisition agreement | ' | ' | 31-May-13 | ' | ' |
Investments_and_Fair_Value_Mea8
Investments and Fair Value Measurements - Summary of Changes in Contingent Liability for Self-Insurance (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Liabilities Under Self Insurance Program [Abstract] | ' | ' |
Beginning Balance, Fair value of self-insurance liability | $1,375 | $1,640 |
Additions to reserve | 8,880 | 12,440 |
Employee contributions | 1,739 | 2,340 |
Less: insurance claims and administrative fees paid | -9,572 | -15,045 |
Ending Balance, Fair value of self-insurance liability | $2,422 | $1,375 |
Indebtedness_Additional_Inform
Indebtedness - Additional Information (Detail) (USD $) | Sep. 30, 2013 | 31-May-13 | Jan. 10, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Cretaprint [Member] | Technique [Member] | Notes payable to banks [Member] | Lines of credit [Member] | |||
Alphagraph [Member] | |||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding | ' | ' | $6.90 | ' | ' | ' | ' |
Weighted average interest rate | ' | ' | ' | ' | ' | 5.00% | 4.50% |
Short-term liabilities assumed | ' | 1.2 | ' | ' | ' | ' | ' |
Long-term indebtedness, excluding noncurrent portion of contingent consideration remaining balance | ' | ' | ' | ' | 0.3 | ' | ' |
Building loan percentage | ' | ' | ' | ' | 6.75% | ' | ' |
Capital lease liabilities | ' | ' | ' | 0.1 | ' | ' | ' |
Building mortgage, maturity term | ' | ' | ' | ' | '10 years | ' | ' |
Long-term indebtedness consisting of capital lease obligations | $0.20 | ' | ' | ' | ' | ' | ' |
Income_taxes_Additional_Inform
Income taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Recognized tax benefits | ($1,147,000) | ($7,850,000) | ($894,000) | ($3,783,000) | ' |
Pretax net income on tax provisions | 14,994,000 | 5,561,000 | 33,033,000 | 22,867,000 | ' |
Provisions for income taxes before discrete items | 2,700,000 | 3,300,000 | 7,000,000 | 8,500,000 | ' |
U.S. statutory income tax rate | ' | ' | 35.00% | ' | ' |
Benefit related to retroactive renewal of the U.S. federal research and development tax credit and certain international tax provisions on January 2, 2013 | ' | ' | 3,200,000 | ' | ' |
Provision for (benefit from) reassessment of tax exposure related to filing of prior year tax returns | 400,000 | -800,000 | 700,000 | -800,000 | ' |
Tax expense related to prior year | 1,800,000 | ' | 1,800,000 | ' | ' |
Benefit realized upon filing the prior year tax return | 1,400,000 | ' | 1,100,000 | ' | ' |
Gross unrecognized tax benefits | 33,513,000 | ' | 33,513,000 | ' | 29,755,000 |
Gross unrecognized tax benefits decrease in next 12 months | 5,200,000 | ' | 5,200,000 | ' | ' |
Accrued interest and penalties related to unrecognized tax benefits | $1,200,000 | ' | $1,200,000 | ' | $1,200,000 |
Income_taxes_Tax_Provision_bef
Income taxes - Tax Provision before Discrete Items Reconciled to Recorded Benefit from Income Taxes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Provision for income taxes before discrete items | $2,700,000 | $3,300,000 | $7,000,000 | $8,500,000 |
Interest related to unrecognized tax benefits | 100,000 | 100,000 | 300,000 | 300,000 |
Benefit related to restructuring and other expenses | -200,000 | -800,000 | -1,100,000 | -1,400,000 |
Benefit related to the 2012 U.S. federal research and development tax credit | ' | ' | -3,200,000 | ' |
Deductions related to ESPP dispositions | -300,000 | ' | -600,000 | -400,000 |
Provision for (benefit from) reassessment of tax exposure related to filing of prior year tax returns | 400,000 | -800,000 | 700,000 | -800,000 |
Benefit from reversals of uncertain tax positions due to statute of limitation expirations | -3,500,000 | -9,200,000 | -3,700,000 | -9,500,000 |
Benefit from reversals of accrued interest related to uncertain tax positions | -300,000 | -500,000 | -300,000 | -500,000 |
Benefit from income taxes | ($1,147,000) | ($7,850,000) | ($894,000) | ($3,783,000) |
Income_taxes_Open_Tax_Years_Ad
Income taxes - Open Tax Years - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Period Start [Member] | Internal Revenue Service [Member] | ' |
Income Tax Examination [Line Items] | ' |
Open tax year | '2010 |
Period Start [Member] | State tax jurisdictions [Member] | ' |
Income Tax Examination [Line Items] | ' |
Open tax year | '2008 |
Period Start [Member] | Netherlands tax authority [Member] | ' |
Income Tax Examination [Line Items] | ' |
Open tax year | '2010 |
Period End [Member] | Internal Revenue Service [Member] | ' |
Income Tax Examination [Line Items] | ' |
Open tax year | '2012 |
Period End [Member] | State tax jurisdictions [Member] | ' |
Income Tax Examination [Line Items] | ' |
Open tax year | '2012 |
Period End [Member] | Netherlands tax authority [Member] | ' |
Income Tax Examination [Line Items] | ' |
Open tax year | '2012 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Dec. 31, 2012 | Nov. 01, 2012 | Dec. 31, 2011 | Apr. 26, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | USD ($) | sqft | USD ($) | California [Member] | California [Member] | Scenario Forecast [Member] | Maximum [Member] | Perfectproof [Member] | Perfectproof [Member] | Entrac, Cretaprint, Streamline, Alphagraph, And Metrics [Member] | Entrac and Alphagraph [Member] | Kerajet [Member] | Kerajet [Member] | |
USD ($) | USD ($) | California [Member] | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | EUR (€) | |||||
sqft | USD ($) | |||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of earnouts | $30,881,000 | $38,050,000 | ' | $8,704,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent liability, current | 21,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent liability, noncurrent | 9,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential earnout payment undiscounted | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ' |
Fair value of contingent consideration decreased, net | -619,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 2,100,000 | ' | ' |
Earnout interest accretion | 1,100,000 | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stop loss deductible | 125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent liability accrued | 2,422,000 | 1,375,000 | ' | 1,640,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of real estate property | ' | ' | 294,000 | ' | 119,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total cash paid to acquire facility | ' | ' | ' | ' | 21,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Build-out and construction costs | ' | ' | ' | ' | ' | 17.2 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional build-out and construction costs | 4,900,000 | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' |
Lease term | ' | ' | ' | ' | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of leased property | ' | ' | ' | ' | 58,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease base rent plus other charges and expenses | ' | ' | ' | ' | 18,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Build out and structural improvements paid by lessor | ' | ' | ' | ' | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment including capitalized interest | 11,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Imputed financing obligation | 11,267,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages claimed | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | 600,000 | ' | ' | 3,300,000 | 2,500,000 |
Additional damages claimed | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' |
Estimated loss, minimum | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Estimated loss, maximum | ' | ' | ' | ' | ' | ' | ' | ' | $1,100,000 | ' | ' | ' | ' | ' |
Segment_Information_and_Geogra2
Segment Information and Geographic Data - Additional Information (Detail) (Operating Segment [Member], USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
Segment | Industrial Inkjet [Member] | Productivity Software [Member] | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of operating segments | 3 | ' | ' |
Increase in goodwill | ' | $0.80 | $0.40 |
Segment_Information_and_Geogra3
Segment Information and Geographic Data - Summary of Gross Profit Information, Excluding Stock-Based Compensation Expense by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | $178,823 | $154,074 | $530,480 | $478,031 |
Operating Segment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Gross profit | 97,697 | 83,370 | 290,391 | 261,362 |
Operating Segment [Member] | Industrial Inkjet [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 87,117 | 79,096 | 255,423 | 234,008 |
Gross profit | 34,675 | 31,842 | 101,822 | 93,544 |
Gross profit percentages | 39.80% | 40.30% | 39.90% | 40.00% |
Operating Segment [Member] | Productivity Software [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 28,532 | 24,252 | 84,770 | 74,043 |
Gross profit | 20,397 | 17,336 | 60,553 | 53,001 |
Gross profit percentages | 71.50% | 71.50% | 71.40% | 71.60% |
Operating Segment [Member] | Fiery [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 63,174 | 50,726 | 190,287 | 169,980 |
Gross profit | $42,625 | $34,192 | $128,016 | $114,817 |
Gross profit percentages | 67.50% | 67.40% | 67.30% | 67.50% |
Segment_Information_and_Geogra4
Segment Information and Geographic Data - Reconciliation of Segment Gross Profit to Condensed Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Information [Line Items] | ' | ' | ' | ' |
Gross profit | $97,213 | $83,077 | $289,056 | $260,536 |
Operating Segment [Member] | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' |
Segment gross profit | 97,697 | 83,370 | 290,391 | 261,362 |
Segment Reconciling Items [Member] | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | ($484) | ($293) | ($1,335) | ($826) |
Segment_Information_and_Geogra5
Segment Information and Geographic Data - Tangible and Intangible Assets, Net of Liabilities, Summarized by Operating Segment (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Indefinite Lived Intangible Assets And Goodwill By Major Class [Line Items] | ' | ' |
Goodwill | $225,552 | $219,456 |
Identified intangible assets, net | 68,350 | 80,244 |
Industrial Inkjet [Member] | Operating Segment [Member] | ' | ' |
Indefinite Lived Intangible Assets And Goodwill By Major Class [Line Items] | ' | ' |
Goodwill | 61,273 | 60,745 |
Identified intangible assets, net | 35,333 | 41,103 |
Tangible assets, net of liabilities | 98,895 | 80,569 |
Net tangible and intangible assets | 195,501 | 182,417 |
Productivity Software [Member] | Operating Segment [Member] | ' | ' |
Indefinite Lived Intangible Assets And Goodwill By Major Class [Line Items] | ' | ' |
Goodwill | 99,601 | 94,185 |
Identified intangible assets, net | 30,795 | 36,141 |
Tangible assets, net of liabilities | -22,123 | -14,312 |
Net tangible and intangible assets | 108,273 | 116,014 |
Fiery [Member] | Operating Segment [Member] | ' | ' |
Indefinite Lived Intangible Assets And Goodwill By Major Class [Line Items] | ' | ' |
Goodwill | 64,678 | 64,526 |
Identified intangible assets, net | 2,222 | 3,000 |
Tangible assets, net of liabilities | 30,959 | 26,304 |
Net tangible and intangible assets | $97,859 | $93,830 |
Segment_Information_and_Geogra6
Segment Information and Geographic Data - Revenue by Ship-to Destination (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues For Geographical Areas In Which Company Operates [Line Items] | ' | ' | ' | ' |
Total revenue | $178,823 | $154,074 | $530,480 | $478,031 |
Reportable Geographical Components [Member] | ' | ' | ' | ' |
Revenues For Geographical Areas In Which Company Operates [Line Items] | ' | ' | ' | ' |
Total revenue | 178,823 | 154,074 | 530,480 | 478,031 |
Reportable Geographical Components [Member] | Americas [Member] | ' | ' | ' | ' |
Revenues For Geographical Areas In Which Company Operates [Line Items] | ' | ' | ' | ' |
Total revenue | 102,393 | 86,445 | 296,806 | 251,351 |
Reportable Geographical Components [Member] | Europe, Middle East, and Africa ('EMEA") [Member] | ' | ' | ' | ' |
Revenues For Geographical Areas In Which Company Operates [Line Items] | ' | ' | ' | ' |
Total revenue | 52,189 | 41,137 | 152,219 | 147,823 |
Reportable Geographical Components [Member] | Asia Pacific ("APAC") [Member] | ' | ' | ' | ' |
Revenues For Geographical Areas In Which Company Operates [Line Items] | ' | ' | ' | ' |
Total revenue | 24,241 | 26,492 | 81,455 | 78,857 |
Reportable Geographical Components [Member] | Japan [Member] | ' | ' | ' | ' |
Revenues For Geographical Areas In Which Company Operates [Line Items] | ' | ' | ' | ' |
Total revenue | 4,349 | 7,471 | 17,383 | 22,290 |
Reportable Geographical Components [Member] | APAC, ex Japan [Member] | ' | ' | ' | ' |
Revenues For Geographical Areas In Which Company Operates [Line Items] | ' | ' | ' | ' |
Total revenue | $19,892 | $19,021 | $64,072 | $56,567 |
Derivatives_and_Hedging_Additi
Derivatives and Hedging - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Notional Amount Of Derivatives [Line Items] | ' | ' |
Notional amount of our derivative assets and liabilities | $19.90 | $3.20 |
Not designated as hedging instruments [Member] | ' | ' |
Schedule Of Notional Amount Of Derivatives [Line Items] | ' | ' |
Notional amount of our derivative assets and liabilities | 17.6 | 0.5 |
Foreign exchange contracts designated as cash flow hedges [Member] | ' | ' |
Schedule Of Notional Amount Of Derivatives [Line Items] | ' | ' |
Notional amount of our derivative assets and liabilities | $2.30 | $2.70 |
Restructuring_and_Other_Additi
Restructuring and Other - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Employees | Employees | Employees | Employees | ||
Restructuring and other charges | $960,000 | $2,280,000 | $4,097,000 | $4,530,000 | ' |
Restructuring and severance charges | 600,000 | 1,500,000 | 2,000,000 | 2,500,000 | ' |
Reductions in number of head count | 22 | 59 | 84 | 103 | ' |
Retention expenses | 200,000 | 200,000 | 699,000 | 678,000 | 907,000 |
Facilities relocation expenses | ' | 300,000 | 200,000 | 300,000 | ' |
Metrics, Cretaprint, and Prism Group Holdings Limited ("Prism") acquisitions [Member] | ' | ' | ' | ' | ' |
Integration expenses | ' | 300,000 | ' | 1,000,000 | ' |
Metrics, Cretaprint, OPS, Technique and GamSys acquisitions [Member] | ' | ' | ' | ' | ' |
Integration expenses | $200,000 | ' | $1,200,000 | ' | ' |
Restructuring_and_Other_Restru
Restructuring and Other - Restructuring and Other Reserve Activities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Restructuring And Related Activities [Abstract] | ' | ' | ' | ' | ' |
Reserve balance at January 1, | ' | ' | $1,670 | $1,870 | $1,870 |
Restructuring | ' | ' | 1,254 | 2,203 | ' |
Other | ' | ' | 2,843 | 2,327 | ' |
Non-cash acquisition-related compensation and restructuring | -200 | -200 | -699 | -678 | -907 |
Cash payments | ' | ' | -3,745 | -3,513 | ' |
Reserve balance at September 30, | $1,274 | $2,209 | $1,274 | $2,209 | $1,670 |
Stockbased_Compensation_Schedu
Stock-based Compensation - Schedule of Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $6,267 | $4,905 | $18,709 | $14,338 |
Tax effect on stock-based compensation | -2,530 | -1,121 | -6,278 | -3,982 |
Net effect on net income | 3,737 | 3,784 | 12,431 | 10,356 |
Employee stock options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 170 | 277 | 804 | 739 |
Non-vested RSUs [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 5,478 | 3,755 | 15,608 | 11,651 |
ESPP [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $619 | $873 | $2,297 | $1,948 |
Stockbased_Compensation_Schedu1
Stock-based Compensation - Schedule of Estimated Per Share Weighted Average Fair Value and Assumptions Used to Estimate Fair Value (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average fair value per share | ' | $16.57 | ' | $16.57 |
Expected volatility | ' | 43.80% | ' | 43.80% |
Risk-free interest rate | ' | 0.50% | ' | 0.50% |
Expected term (in years) | ' | '4 years | ' | '4 years |
ESPP [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average fair value per share | $8.31 | $4.44 | $7.53 | $4.70 |
ESPP [Member] | Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected volatility | 25.00% | 32.00% | 25.00% | 32.00% |
Risk-free interest rate | 0.10% | 0.10% | 0.10% | 0.10% |
Expected term (in years) | '6 months | '6 months | '6 months | '6 months |
ESPP [Member] | Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected volatility | 35.00% | 41.00% | 38.00% | 49.00% |
Risk-free interest rate | 0.40% | 0.20% | 0.40% | 0.20% |
Expected term (in years) | '2 years | '2 years | '2 years | '2 years |
Stockbased_Compensation_Schedu2
Stock-based Compensation - Schedule of Stock Options Outstanding and Exercisable (Detail) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Options outstanding, beginning balance | 1,536 |
Options granted | ' |
Options forfeited and expired | -41 |
Options forfeited and expired, net of granted | -41 |
Options exercised | -412 |
Options outstanding, ending balance | 1,083 |
Options vested and expected to vest, ending balance | 1,064 |
Options exercisable, ending balance | 869 |
Weighted average exercise price, Options outstanding, beginning balance | $14.19 |
Weighted average exercise price, Options granted | ' |
Weighted average exercise price, Options forfeited and expired | $25.63 |
Weighted average exercise price, Options forfeited and expired, net of granted | ' |
Weighted average exercise price, Options exercised | $11.75 |
Weighted average exercise price, Options outstanding, ending balance | $14.68 |
Weighted average exercise price, Options vested and expected to vest, ending balance | $14.67 |
Weighted average exercise price, Options exercisable, ending balance | $14.61 |
Weighted average remaining contractual term (years), Options outstanding | '3 years 1 month 10 days |
Weighted average remaining contractual term (years), Options vested and expected to vest | '3 years 26 days |
Weighted average remaining contractual term (years), Options exercisable | '2 years 7 months 17 days |
Aggregate intrinsic value, Options outstanding | $18,409 |
Aggregate intrinsic value, Options vested and expected to vest | 18,102 |
Aggregate intrinsic value, Options exercisable | $14,839 |
Stockbased_Compensation_Schedu3
Stock-based Compensation - Schedule of Non-Vested RSUs (Detail) (RSUs [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
RSUs [Member] | ' |
Nonvested Restricted Stock Units Activity [Line Items] | ' |
Shares, Non-vested, beginning balance | 2,345,000 |
Shares, Restricted stock granted | 1,147,000 |
Shares, Restricted stock vested | -1,112,000 |
Shares, Restricted stock forfeited | -304,000 |
Shares, Non-vested, ending balance | 2,076,000 |
Weighted average grant date fair value, Non-vested, beginning balance | $15.26 |
Weighted average grant date fair value, Restricted stock granted | $28.63 |
Weighted average grant date fair value, Restricted stock vested | $14.28 |
Weighted average grant date fair value, Restricted stock forfeited | $17.56 |
Weighted average grant date fair value, Non-vested, ending balance | $22.84 |
Stockbased_Compensation_Valuat
Stock-based Compensation - Valuation Assumptions - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Grant date fair value of RSUs vested | $15.90 |
Aggregate intrinsic value of Restricted Stock Units expected to vest | $57.30 |
Remaining weighted average vesting period, in years | '1 year 4 months 24 days |
Stockbased_Compensation_Amende
Stock-based Compensation - Amended and Restated 2009 Equity Incentive Award Plan - Additional Information (Detail) (2009 Equity Incentive Award Plan [Member]) | Jun. 04, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
2009 Equity Incentive Award Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Common stock reserved under the plan for future issuance | ' | 7 |
Common stock reserved under the plan for future issuance | 11.6 | ' |
Stockbased_Compensation_Amende1
Stock-based Compensation - Amended and Restated 2000 Employee Stock Purchase Plan - Additional Information (Detail) (ESPP [Member], USD $) | 9 Months Ended | |
Share data in Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 04, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Increase in the number of shares available to be sold under the ESPP | ' | 2 |
Maximum value of shares employees can purchase | $25,000 | ' |
Option price as percentage of fair market value | 85.00% | ' |
Maximum offering period | '27 months | ' |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percentage of employee contribution to plan from base salary | 1.00% | ' |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percentage of employee contribution to plan from base salary | 10.00% | ' |
Stockbased_Compensation_Perfor
Stock-based Compensation - Performance-based Stock Options and RSUs - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2009 |
Performance-based RSU [Member] | Performance-based RSU [Member] | Performance-based RSU [Member] | Performance-Based RSUs Granted In 2012 [Member] | Performance-Based RSUs Granted In 2012 [Member] | Performance-based RSUs [Member] | Performance-based RSUs [Member] | Performance-based RSUs [Member] | Performance-based stock options [Member] | ||
Vested on May 23, 2012 [Member] | Vested on August 15, 2013 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RSUs granted during the period | ' | 244,112 | 282,850 | 323,600 | 280,305 | 191,594 | 195,156 | ' | ' | ' |
Estimated grant date fair value of restricted stock | ' | $5.70 | $4.90 | $5 | $8.60 | $3 | $3 | ' | ' | ' |
Service period, in years | ' | '1 year | '1 year | '1 year | ' | ' | ' | ' | ' | ' |
RSUs that remain outstanding | ' | 229,774 | 0 | 0 | 280,305 | 109,393 | 53,939 | ' | ' | ' |
Average derived service period, in years | ' | ' | ' | ' | '4 years | '3 years | '3 years | ' | ' | '3 years 8 months 16 days |
Approximate percentage of performance criteria achieved and shares vested | ' | ' | 58.00% | 90.00% | ' | ' | ' | ' | ' | ' |
RSUs vested | ' | ' | ' | ' | ' | 63,868 | ' | 64,909 | 62,201 | ' |
Options granted during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,674 |
Estimated grant date fair value of stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 |
Stock options vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,298 |
Stock options that remain outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,540 |
Stockbased_Compensation_Market
Stock-based Compensation - Market-based Stock Options and RSUs - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2009 | Dec. 31, 2009 |
Market-based RSUs [Member] | Market-based RSUs [Member] | Market-based stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
RSUs granted during the period | ' | 90,000 | 98,000 | ' |
Estimated grant date fair value of restricted stock | ' | $1.10 | $0.90 | ' |
Average derived service period, in years | ' | '3 years 11 months 5 days | '4 years 4 months 6 days | '4 years 10 months 17 days |
Risk-free interest rate | ' | 2.90% | 3.50% | 3.10% |
Implied volatility | ' | 40.00% | 50.00% | 50.00% |
RSUs that remain outstanding | ' | 0 | 0 | 0 |
Options granted during the period | ' | ' | ' | 294,076 |
Estimated grant date fair value of stock options | ' | ' | ' | $1.70 |
RSUs vested | ' | 90,000 | 78,000 | ' |
Stock options vested | ' | ' | ' | 190,716 |
Common_Stock_Repurchase_Progra1
Common Stock Repurchase Programs - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | |||
Share data in Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share Repurchase Program Two Thousand And Twelve [Member] | Share Repurchase Program Two Thousand And Twelve [Member] | Share Repurchase Program Two Thousand And Twelve [Member] | Share Repurchase Program Two Thousand And Twelve [Member] | Net Share Settlement [Member] | Net Share Settlement [Member] | Net Share Settlement [Member] | Net Share Settlement [Member] | |||
Stock Repurchase Program [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock, authorized amount | ' | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' |
Aggregate shares purchased | ' | ' | ' | 0.2 | 0.6 | 1.3 | 0.2 | 0.2 | 0.5 | 0.7 |
Aggregate purchase price | 28,852,000 | 18,392,000 | ' | 5,000,000 | 15,000,000 | 22,900,000 | ' | ' | ' | ' |
Value of shares surrendered to satisfy tax withholding obligations | ' | ' | ' | ' | ' | ' | $6,000,000 | $2,600,000 | $13,900,000 | $12,000,000 |
Accounts_Receivable_Additional
Accounts Receivable - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivables And Accounts Receivable Sales Arrangements [Line Items] | ' | ' | ' |
Sales-type lease and trade receivables | $2.40 | $2.40 | $2.30 |
Spain [Member] | ' | ' | ' |
Financing Receivables And Accounts Receivable Sales Arrangements [Line Items] | ' | ' | ' |
Trade receivables sold without recourse | 1.1 | 5.2 | 4.3 |
United States [Member] | ' | ' | ' |
Financing Receivables And Accounts Receivable Sales Arrangements [Line Items] | ' | ' | ' |
Trade receivable sold with recourse | 2 | 8.9 | 2.1 |
Sales-type lease [Member] | ' | ' | ' |
Financing Receivables And Accounts Receivable Sales Arrangements [Line Items] | ' | ' | ' |
Sales-type lease receivables | 1.3 | 1.3 | 0.9 |
Trade Receivables with Original Maturities in excess of One Year [Member] | ' | ' | ' |
Financing Receivables And Accounts Receivable Sales Arrangements [Line Items] | ' | ' | ' |
Trade receivables with original maturities in excess of one year | $1.10 | $1.10 | $1.40 |
Deferred_Proceeds_from_Propert1
Deferred Proceeds from Property Transaction - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | ||||||||||
Nov. 01, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | |
sqft | Land, building and improvements [Member] | Land, building and improvements [Member] | Land, building and improvements [Member] | Land, building and improvements [Member] | Current assets [Member] | Current assets [Member] | Current assets [Member] | Current assets [Member] | Scenario Forecast [Member] | |||
acre | Property previously subject to a synthetic lease [Member] | Land [Member] | Leasehold and land improvements [Member] | Direct transaction costs [Member] | Synthetic lease capitalized financing cost [Member] | Imputed receivable [Member] | ||||||
Long Lived Assets Subject To Sales Agreement [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling price of property and other related assets | $179,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of real estate property | 294,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acres of land sold | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total deferred proceeds from property transaction | ' | 182,870,000 | 180,216,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property subject to a sales agreement | ' | 64,500,000 | ' | 60,400,000 | 56,900,000 | 2,900,000 | 2,100,000 | 4,100,000 | 400,000 | 500,000 | 3,200,000 | ' |
Net of accumulated depreciation | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Imputed financing and depreciation expenses, net of imputed sublease income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 |
Gain on sale of building and land | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $117,000,000 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 31, 2013 |
Productivity Software [Member] | |||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' |
Total cash paid to acquire business | $4,596 | $47,520 | $3,600 |