Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2018 | Jan. 17, 2019 | May 31, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | PROGRESS SOFTWARE CORP /MA | ||
Entity Central Index Key | 876,167 | ||
Current Fiscal Year End Date | --11-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Nov. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 45,153,755 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,707 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 105,126 | $ 133,464 |
Short-term investments | 34,387 | 50,145 |
Total cash, cash equivalents and short-term investments | 139,513 | 183,609 |
Accounts receivable (less allowances of $710 in 2018 and $676 in 2017) | 58,450 | 61,210 |
Other current assets | 25,080 | 18,588 |
Assets held for sale | 5,776 | 0 |
Total current assets | 228,819 | 263,407 |
Property and equipment, net | 30,714 | 42,261 |
Intangible assets, net | 58,919 | 94,894 |
Goodwill | 314,992 | 315,041 |
Deferred tax assets | 1,922 | 1,123 |
Other assets | 5,243 | 1,992 |
Total assets | 640,609 | 718,718 |
Current liabilities: | ||
Current portion of long-term debt, net | 5,819 | 5,819 |
Accounts payable | 10,593 | 9,000 |
Accrued compensation and related taxes | 25,500 | 32,373 |
Dividends payable to shareholders | 6,998 | 6,619 |
Income taxes payable | 1,228 | 1,173 |
Other accrued liabilities | 12,686 | 20,496 |
Short-term deferred revenue | 133,194 | 132,538 |
Total current liabilities | 196,018 | 208,018 |
Long-term debt, net | 110,270 | 116,090 |
Long-term deferred revenue | 15,127 | 9,750 |
Deferred tax liabilities | 3,797 | 2,809 |
Other noncurrent liabilities | 5,315 | 5,967 |
Commitments and contingencies (Note 9) | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value; authorized, 10,000,000 shares; issued, none | 0 | 0 |
Common stock, $0.01 par value, and additional paid-in capital; authorized, 200,000,000 shares; issued and outstanding, 45,114,935 shares in 2018 and 47,281,035 shares in 2017 | 451 | 473 |
Additional paid-in capital | 266,602 | 249,363 |
Retained earnings | 71,242 | 145,247 |
Accumulated other comprehensive loss | (28,213) | (18,999) |
Total shareholders’ equity | 310,082 | 376,084 |
Total liabilities and shareholders’ equity | $ 640,609 | $ 718,718 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Allowances on accounts receivable | $ 710 | $ 676 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 45,114,935 | 47,281,035 |
Common stock, shares outstanding (in shares) | 45,114,935 | 47,281,035 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Revenue: | |||
Total revenue | $ 397,165 | $ 397,572 | $ 405,341 |
Costs of revenue: | |||
Total costs of revenue | 66,973 | 69,159 | 65,712 |
Gross profit | 330,192 | 328,413 | 339,629 |
Operating expenses: | |||
Sales and marketing | 93,036 | 96,345 | 121,501 |
Product development | 79,739 | 76,988 | 88,587 |
General and administrative | 49,050 | 45,739 | 46,532 |
Impairment of goodwill and intangible assets | 0 | 0 | 97,051 |
Loss on assets held for sale | 5,147 | 0 | 0 |
Amortization of acquired intangibles | 13,241 | 13,039 | 12,735 |
Fees related to shareholder activist | 1,472 | 2,020 | 0 |
Restructuring expense | 2,251 | 22,210 | 1,692 |
Acquisition-related expenses | 258 | 1,458 | 1,240 |
Total operating expenses | 244,194 | 257,799 | 369,338 |
Income (loss) from operations | 85,998 | 70,614 | (29,709) |
Other (expense) income: | |||
Interest expense | (5,149) | (4,631) | (4,178) |
Interest income and other, net | 1,220 | 921 | 839 |
Foreign currency loss, net | (3,089) | (1,317) | (2,232) |
Total other expense, net | (7,018) | (5,027) | (5,571) |
Income (loss) before income taxes | 78,980 | 65,587 | (35,280) |
Provision for income taxes | 15,489 | 28,170 | 20,446 |
Net income (loss) | $ 63,491 | $ 37,417 | $ (55,726) |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ 1.39 | $ 0.78 | $ (1.13) |
Diluted (in dollars per share) | $ 1.38 | $ 0.77 | $ (1.13) |
Weighted average shares outstanding: | |||
Basic (in shares) | 45,561 | 48,129 | 49,481 |
Diluted (in shares) | 46,135 | 48,516 | 49,481 |
Cash dividends declared per common share (in dollars per share) | $ 0.575 | $ 0.515 | $ 0.125 |
Software licenses | |||
Revenue: | |||
Total revenue | $ 122,137 | $ 124,406 | $ 134,863 |
Costs of revenue: | |||
Total costs of revenue | 4,769 | 5,752 | 5,456 |
Maintenance and services | |||
Revenue: | |||
Total revenue | 275,028 | 273,166 | 270,478 |
Costs of revenue: | |||
Total costs of revenue | 39,470 | 43,299 | 44,760 |
Amortization of acquired intangibles | |||
Costs of revenue: | |||
Total costs of revenue | $ 22,734 | $ 20,108 | $ 15,496 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 63,491 | $ 37,417 | $ (55,726) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (9,240) | 9,655 | (3,843) |
Unrealized gain (loss) on investments, net of tax provision (benefit) of $57 in 2018, ($60) in 2017, and ($53) in 2016 | 26 | (93) | (90) |
Total other comprehensive (loss) income, net of tax | (9,214) | 9,562 | (3,933) |
Comprehensive income (loss) | $ 54,277 | $ 46,979 | $ (59,659) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on investments, net of tax provision (benefit) | $ 57 | $ (60) | $ (53) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance, beginning of year (in shares) at Nov. 30, 2015 | 50,580,000 | ||||
Balance, beginning of year at Nov. 30, 2015 | $ 522,464 | $ 506 | $ 227,424 | $ 319,162 | $ (24,628) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock under employee stock purchase plan (in shares) | 266,000 | ||||
Issuance of stock under employee stock purchase plan | 5,328 | $ 3 | 5,325 | ||
Exercise of stock options (in shares) | 260,000 | ||||
Exercise of stock options | 4,698 | $ 2 | 4,696 | ||
Vesting of restricted stock units and release of deferred stock units (in shares) | 700,000 | ||||
Vesting of restricted stock units and release of deferred stock units | 7 | $ 7 | |||
Withholding tax payments related to net issuance of restricted stock units (in shares) | (156,000) | ||||
Withholding tax payments related to net issuance of restricted stock units | (3,984) | $ (2) | (3,982) | ||
Tax benefit arising from employee stock purchase plan, stock options and restricted share activity | 489 | 489 | |||
Stock-based compensation | 22,541 | 22,541 | |||
Dividends declared | $ (6,067) | (6,067) | |||
Treasury stock repurchases and retirements (in shares) | (3,100,000) | (3,113,000) | |||
Treasury stock repurchases and retirements | $ (79,188) | $ (31) | (17,482) | (61,675) | |
Net income (loss) | (55,726) | (55,726) | |||
Other comprehensive income (loss), net of tax | (3,933) | (3,933) | |||
Balance, end of year (in shares) at Nov. 30, 2016 | 48,537,000 | ||||
Balance, end of year at Nov. 30, 2016 | 406,629 | $ 485 | 239,011 | 195,694 | (28,561) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock under employee stock purchase plan (in shares) | 220,000 | ||||
Issuance of stock under employee stock purchase plan | 4,900 | $ 2 | 4,898 | ||
Exercise of stock options (in shares) | 203,000 | ||||
Exercise of stock options | 5,108 | $ 2 | 5,106 | ||
Vesting of restricted stock units and release of deferred stock units (in shares) | 660,000 | ||||
Vesting of restricted stock units and release of deferred stock units | 7 | $ 7 | |||
Withholding tax payments related to net issuance of restricted stock units (in shares) | 118,000 | ||||
Withholding tax payments related to net issuance of restricted stock units | (3,756) | $ (1) | (3,755) | ||
Tax benefit arising from employee stock purchase plan, stock options and restricted share activity | 679 | 679 | |||
Stock-based compensation | 14,153 | 14,153 | |||
Dividends declared | $ (24,679) | (24,679) | |||
Treasury stock repurchases and retirements (in shares) | (2,200,000) | (2,221,000) | |||
Treasury stock repurchases and retirements | $ (73,936) | $ (22) | (10,729) | (63,185) | |
Net income (loss) | 37,417 | 37,417 | |||
Other comprehensive income (loss), net of tax | $ 9,562 | 9,562 | |||
Balance, end of year (in shares) at Nov. 30, 2017 | 47,281,035 | 47,281,000 | |||
Balance, end of year at Nov. 30, 2017 | $ 376,084 | $ 473 | 249,363 | 145,247 | (18,999) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adjustment due to adoption of ASU 2016-09 | Accounting Standards Update 2016-09, Excess Tax Benefit Component | 641 | (641) | |||
Issuance of stock under employee stock purchase plan (in shares) | 225,000 | ||||
Issuance of stock under employee stock purchase plan | 5,458 | $ 2 | 5,456 | ||
Exercise of stock options (in shares) | 189,000 | ||||
Exercise of stock options | 3,858 | $ 2 | 3,856 | ||
Vesting of restricted stock units and release of deferred stock units (in shares) | 407,000 | ||||
Vesting of restricted stock units and release of deferred stock units | 4 | $ 4 | |||
Withholding tax payments related to net issuance of restricted stock units (in shares) | (108,000) | ||||
Withholding tax payments related to net issuance of restricted stock units | (3,999) | $ (1) | (3,998) | ||
Stock-based compensation | 20,569 | 20,569 | |||
Dividends declared | $ (26,169) | (26,169) | |||
Treasury stock repurchases and retirements (in shares) | (2,900,000) | (2,879,000) | |||
Treasury stock repurchases and retirements | $ (120,000) | $ (29) | (9,285) | (110,686) | |
Net income (loss) | 63,491 | 63,491 | |||
Other comprehensive income (loss), net of tax | $ (9,214) | (9,214) | |||
Balance, end of year (in shares) at Nov. 30, 2018 | 45,114,935 | 45,115,000 | |||
Balance, end of year at Nov. 30, 2018 | $ 310,082 | $ 451 | $ 266,602 | $ 71,242 | $ (28,213) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018USD ($) | Nov. 30, 2017USD ($) | Nov. 30, 2016USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ 63,491 | $ 37,417 | $ (55,726) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment | 6,941 | 7,526 | 8,506 |
Amortization of acquired intangibles and other | 37,561 | 35,370 | 30,815 |
Stock-based compensation | 20,569 | 14,153 | 22,541 |
Loss on disposal of property and equipment | 390 | 416 | 370 |
Loss on assets held for sale | 5,147 | 0 | 0 |
Impairment of goodwill and intangible assets | 0 | 0 | 97,051 |
Deferred income taxes | 2,035 | 474 | 1,307 |
Excess tax benefit from stock plans | 0 | (904) | (436) |
Allowances for bad debt and sales credits | 262 | 46 | (479) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 2,072 | 6,442 | 647 |
Other assets | (10,332) | 2,813 | (3,925) |
Accounts payable and accrued liabilities | (11,842) | 673 | (3,094) |
Income taxes payable | (2,890) | 892 | 109 |
Deferred revenue | 7,948 | 368 | 5,159 |
Net cash flows from operating activities | 121,352 | 105,686 | 102,845 |
Cash flows from (used in) investing activities: | |||
Purchases of investments | (8,258) | (40,380) | (41,691) |
Sales and maturities of investments | 23,101 | 31,559 | 26,475 |
Purchases of property and equipment | (7,250) | (3,377) | (5,786) |
Payments for acquisitions, net of cash acquired | 0 | (77,150) | 0 |
Proceeds from sale of property, plant and equipment, net | 0 | 1,557 | 0 |
Net cash flows from (used in) investing activities | 7,593 | (87,791) | (21,002) |
Cash flows used in financing activities: | |||
Proceeds from stock-based compensation plans | 9,205 | 10,025 | 9,918 |
Payments for taxes related to net share settlements of equity awards | (3,999) | (3,756) | (3,984) |
Repurchases of common stock | (120,000) | (73,936) | (79,188) |
Dividend payments to shareholders | (25,789) | (24,127) | 0 |
Excess tax benefit from stock plans | 0 | 904 | 436 |
Payment of principal on long-term debt | (6,188) | (11,250) | (9,375) |
Payment of issuance costs for long-term debt | 0 | (1,174) | 0 |
Net cash flows used in financing activities | (146,771) | (103,314) | (82,193) |
Effect of exchange rate changes on cash | (10,512) | 11,847 | (4,993) |
Net decrease in cash and cash equivalents | (28,338) | (73,572) | (5,343) |
Cash and cash equivalents, beginning of year | 133,464 | 207,036 | 212,379 |
Cash and cash equivalents, end of year | 105,126 | 133,464 | 207,036 |
Supplemental disclosure: | |||
Cash paid for income taxes, net of refunds of $909 in 2018, $3,997 in 2017, and $1,379 in 2016 | 25,451 | 25,992 | 22,031 |
Cash paid for interest | 4,220 | 3,597 | 3,157 |
Non-cash investing and financing activities: | |||
Total fair value of restricted stock awards, restricted stock units and deferred stock units on date vested | 16,431 | 20,089 | 17,213 |
Dividends declared | $ 6,998 | $ 6,619 | $ 6,067 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Statement of Cash Flows [Abstract] | |||
Proceeds from income tax refunds | $ 909 | $ 3,997 | $ 1,379 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Nov. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | Nature of Business and Summary of Significant Accounting Policies The Company Progress Software Corporation ("Progress," the "Company," "we," "us," or "our") offers the leading platform for developing and deploying strategic business applications. We enable customers and partners to deliver modern, high-impact digital experiences with a fraction of the effort, time and cost. Progress offers powerful tools for easily building adaptive user experiences across any type of device or touchpoint, award-winning machine learning that enables cognitive capabilities to be a part of any application, the flexibility of a serverless cloud to deploy modern apps, business rules, web content management, plus leading data connectivity technology. Over 1,700 independent software vendors ("ISVs"), 100,000 enterprise customers, and 2 million developers rely on Progress to power their applications. Our products are generally sold as perpetual licenses, but certain products also use term licensing models and our cloud-based offerings use a subscription based model. More than half of our worldwide license revenue is realized through relationships with indirect channel partners, principally application partners and original equipment manufacturers ("OEMs"). Application partners are ISVs that develop and market applications using our technology and resell our products in conjunction with sales of their own products that incorporate our technology. OEMs are companies that embed our products into their own software products or devices. We operate in North America and Latin America; Europe, the Middle East and Africa ("EMEA"); and the Asia Pacific region, through local subsidiaries as well as independent distributors. Accounting Principles We prepare our consolidated financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Basis of Consolidation The consolidated financial statements include our accounts and those of our subsidiaries (all of which are wholly-owned). We eliminate all intercompany balances and transactions. Use of Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an on-going basis, management evaluates its estimates and records changes in estimates in the period in which they become known. These estimates are based on historical data and experience, as well as various other assumptions that management believes to be reasonable under the circumstances. The most significant estimates relate to the timing and amounts of revenue recognition, the realization of tax assets and estimates of tax liabilities, fair values of investments in marketable securities, assets held for sale, intangible assets and goodwill valuations, the recognition and disclosure of contingent liabilities, the collectability of accounts receivable, and assumptions used to determine the fair value of stock-based compensation. Actual results could differ from those estimates. Foreign Currency Translation The functional currency of most of our foreign subsidiaries is the local currency in which the subsidiary operates. For foreign operations where the local currency is considered to be the functional currency, we translate assets and liabilities into U.S. dollars at the exchange rate on the balance sheet date. We translate income and expense items at average rates of exchange prevailing during each period. We accumulate translation adjustments in accumulated other comprehensive loss, a component of shareholders’ equity. For foreign operations where the U.S. dollar is considered to be the functional currency, we remeasure monetary assets and liabilities into U.S. dollars at the exchange rate on the balance sheet date and non-monetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. We translate income and expense items at average rates of exchange prevailing during each period. We recognize remeasurement adjustments currently as a component of foreign currency loss, net in the statements of operations. Transaction gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in foreign currency loss, net in the statements of operations as incurred. Cash Equivalents and Investments Cash equivalents include short-term, highly liquid investments purchased with remaining maturities of three months or less. As of November 30, 2018 , all of our cash equivalents were invested in money market funds. We classify investments, state and municipal bond obligations, U.S. treasury and government agency bonds, and corporate bonds and notes, as investments available-for-sale, which are stated at fair value. We include aggregate unrealized holding gains and losses, net of taxes, on available-for-sale securities as a component of accumulated other comprehensive loss in shareholders’ equity. We include realized gains and losses in interest income and other, net on the consolidated statements of operations. We monitor our investment portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other than temporary, an impairment charge is recorded and a new cost basis for the investment is established. In determining whether an other-than-temporary impairment exists, we consider the nature of the investment, the length of time and the extent to which the fair value has been less than cost, and our intent and ability to continue holding the security for a period sufficient for an expected recovery in fair value. Allowances for Doubtful Accounts and Sales Credit Memos We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. We establish this allowance using estimates that we make based on factors such as the composition of the accounts receivable aging, historical bad debts, changes in payment patterns, changes to customer creditworthiness and current economic trends. We also record an allowance for estimates of potential sales credit memos. This allowance is determined based on an analysis of historical credit memos issued and current economic trends, and is recorded as a reduction of revenue. A summary of activity in the allowance for doubtful accounts is as follows (in thousands): November 30, 2018 November 30, 2017 November 30, 2016 Beginning balance $ 498 $ 741 $ 1,421 Charge (credit) to costs and expenses 216 204 (256 ) Write-offs and other (232 ) (437 ) (370 ) Translation adjustments 4 (10 ) (54 ) Ending balance $ 486 $ 498 $ 741 A summary of activity in the allowance for sales credit memos is as follows (in thousands): November 30, 2018 November 30, 2017 November 30, 2016 Beginning balance $ 178 $ 402 $ 772 Charge (credit) to revenue 46 (158 ) (223 ) Write-offs and other — (69 ) (144 ) Translation adjustments — 3 (3 ) Ending balance $ 224 $ 178 $ 402 Concentrations of Credit Risk Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments, derivative instruments and trade receivables. We have cash investment policies which, among other things, limit investments to investment-grade securities. We hold our cash and cash equivalents, investments and derivative instrument contracts with high quality financial institutions and we monitor the credit ratings of those institutions. We perform ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the diversity, both by geography and by industry, of the customer base. No single customer represented more than 10% of consolidated accounts receivable or revenue in fiscal years 2018 , 2017 or 2016 . Fair Value of Financial Instruments The carrying amount of our cash and cash equivalents, accounts receivable, accounts payable and long-term debt approximates fair value due to the short-term nature or market interest rates of these items. We base the fair value of short-term investments on quoted market prices or other relevant information generated by market transactions involving identical or comparable assets. We measure and record derivative financial instruments at fair value. See Note 4 for further discussion of financial instruments that are carried at fair value on a recurring and nonrecurring basis. Derivative Instruments We record all derivatives on the consolidated balance sheets at fair value. We use derivative instruments to manage exposures to fluctuations in the value of foreign currencies, which exist as part of our ongoing business operations. Certain assets and forecasted transactions are exposed to foreign currency risk. Our objective for holding derivatives is to eliminate or reduce the impact of these exposures. We periodically monitor our foreign currency exposures to enhance the overall economic effectiveness of our foreign currency hedge positions. Principal currencies hedged include the euro, British pound, Brazilian real, Indian rupee, and Australian dollar. We do not enter into derivative instruments for speculative purposes, nor do we hold or issue any derivative instruments for trading purposes. We enter into certain derivative instruments that do not qualify for hedge accounting and are not designated as hedges. Although these derivatives do not qualify for hedge accounting, we believe that such instruments are closely correlated with the underlying exposure, thus managing the associated risk. The gains or losses from changes in the fair value of such derivative instruments that are not accounted for as hedges are recognized in earnings in foreign currency loss, net in the consolidated statements of operations. Property and Equipment We record property and equipment at cost. We record property and equipment purchased in business combinations at fair value, which is then treated as the cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the useful lives of the assets. Useful lives by major asset class are as follows: computer equipment and software, 3 to 7 years; buildings and improvements, 5 to 39 years; and furniture and fixtures, 5 to 7 years. Repairs and maintenance costs are expensed as incurred. Product Development and Internal Use Software Expenditures for product development, other than internal use software costs, are expensed as incurred. Product development expenses primarily consist of personnel and related expenses for our product development staff, the cost of various third-party contractor fees, and allocated overhead expenses. Software development costs associated with internal use software are incurred in three stages of development: the preliminary project stage, the application development stage, and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Certain internal and external qualifying costs incurred during the application development stage are capitalized as property and equipment. Internal use software is amortized on a straight-line basis over its estimated useful life of three years, beginning when the software is ready for its intended use. During the fiscal years ended November 30, 2018 , 2017 , and 2016 , there were no internal use software development costs capitalized. Amortization expense related to internal use software totaled $0.2 million , $0.6 million , and $1.0 million during the fiscal years ended November 30, 2018 , 2017 , and 2016 , respectively. Goodwill, Intangible Assets and Long-Lived Assets Goodwill is the amount by which the cost of acquired net assets in a business combination exceeded the fair value of net identifiable assets on the date of purchase. We evaluate goodwill and other intangible assets with indefinite useful lives, if any, for impairment annually or on an interim basis when events and circumstances arise that indicate impairment may have occurred. In performing our annual assessment, we first perform a qualitative test and if necessary, perform a quantitative test. To conduct the quantitative impairment test of goodwill, we compare the fair value of a reporting unit to its carrying value. If the reporting unit’s carrying value exceeds its fair value, we record an impairment loss to the extent that the carrying value of goodwill exceeds its implied fair value. We estimate the fair values of our reporting units using discounted cash flow models or other valuation models, such as comparative transactions and market multiples. We did no t recognize any goodwill impairment charges during fiscal years 2018 or 2017. During fiscal year 2016, we recorded a $92.0 million goodwill impairment charge related to the Application Development and Deployment reporting unit (Note 6). Intangible assets are comprised of purchased technology, customer-related assets, and trademarks and trade names acquired through business combinations (Note 7). All of our intangible assets are amortized using the straight-line method over their estimated useful life. We periodically review long-lived assets (primarily property and equipment) and intangible assets with finite lives for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. We base each impairment test on a comparison of the undiscounted cash flows to the carrying value of the asset or asset group. If impairment is indicated, we write down the asset to its estimated fair value based on a discounted cash flow analysis. During fiscal year 2016, we recorded a $5.1 million asset impairment charge, which was applicable to the intangible assets obtained in connection with our acquisition of Modulus during fiscal year 2014 (Note 6). We classify long-lived assets to be sold as held for sale in the period in which: (i) we have approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Assets held for sale are initially measured at the lower of the carrying value or the fair value less cost to sell. Losses resulting from this measurement are recognized in the period in which the held for sale criteria are met while gains are not recognized until the date of sale. Once designated as held for sale, we stop recording depreciation expense on the asset. We assess the fair value less cost to sell of long-lived assets held for sale at each reporting period until it no longer meets this classification. In the fourth quarter of fiscal year 2018, we reclassified certain corporate land and building assets previously reported as property and equipment to assets held for sale on our consolidated balance sheet as we began an active program to sell and expect to sell these assets within one year. As the fair value less cost to sell was less than the carrying value of these assets, we recognized an impairment charge of $5.1 million . The fair value of the assets held for sale was measured using third-party valuation models, which included a discounted cash flow analysis (Note 4). Comprehensive (Loss) Income The components of comprehensive loss include, in addition to net income (loss), unrealized gains and losses on investments and foreign currency translation adjustments. Accumulated other comprehensive loss by components, net of tax (in thousands): Foreign Currency Translation Adjustment Unrealized (Losses) Gains on Investments Total Balance, December 1, 2016 $ (28,425 ) $ (136 ) $ (28,561 ) Other comprehensive income (loss) before reclassifications 9,655 (93 ) 9,562 Net other comprehensive income (loss) 9,655 (93 ) 9,562 Balance, December 1, 2017 $ (18,770 ) $ (229 ) $ (18,999 ) Other comprehensive (loss) income before reclassifications (9,240 ) 26 (9,214 ) Net other comprehensive (loss) income (9,240 ) 26 (9,214 ) Balance, November 30, 2018 $ (28,010 ) $ (203 ) $ (28,213 ) The tax effect on accumulated unrealized losses on investments was minimal as of November 30, 2018 , November 30, 2017 , and November 30, 2016 . Revenue Recognition We derive our revenue primarily from software licenses and maintenance and services. Our license arrangements generally contain multiple elements, including software maintenance services, consulting services, and customer education services. We do not recognize revenue until the following four basic criteria are met: (i) persuasive evidence of an arrangement exists, (ii) our product has been shipped or, if delivered electronically, the customer has the right to access the software, (iii) the fee is fixed or determinable, and (iv) collection of the fee is probable. Evidence of an arrangement generally consists of a contract or purchase order signed by the customer. In regard to delivery, we generally ship our software electronically and do not license our software with conditions of acceptance. If an arrangement does contain conditions of acceptance, we defer recognition of the revenue until the acceptance criteria are met or the period of acceptance has passed. Services are considered delivered as the work is performed or, in the case of maintenance, over the contractual service period. We assess whether a fee is fixed or determinable at the outset of the arrangement and consider the payment terms of the transaction, including transactions that extend beyond our customary payment terms. We do not license our software with a right of return. In assessing whether the collection of the fee is probable, we consider customer credit-worthiness, a customer’s historical payment experience, economic conditions in the customer’s industry and geographic location and general economic conditions. If we do not consider collection of a fee to be probable, we defer the revenue until the fees are collected, provided all other conditions for revenue recognition have been met. In determining when to recognize revenue from a customer arrangement, we are often required to exercise judgment regarding the application of our accounting policies to a particular arrangement. The primary judgments used in evaluating revenue recognized in each period involve: determining whether collection is probable, assessing whether the fee is fixed or determinable, and determining the fair value of the maintenance and services elements included in multiple-element software arrangements. Such judgments can materially impact the amount of revenue that we record in a given period. While we follow specific and detailed rules and guidelines related to revenue recognition, we make and use significant management judgments and estimates in connection with the revenue recognized in any reporting period, particularly in the areas described above. If management made different estimates or judgments, material differences in the timing of the recognition of revenue could occur. In regard to software license revenues, perpetual and term license fees are recognized as revenue when the software is delivered, no significant obligations or contingencies related to the software exist, other than maintenance, and all other revenue recognition criteria are met. We generally recognize revenue for products distributed through application partners and distributors on a sell-in basis. Revenue from maintenance is recognized ratably over the service period. Maintenance revenue is deferred until the associated license is delivered to the customer and all other criteria for revenue recognition have been met. Revenue from other services, which are primarily consulting and customer education services, is generally recognized as the services are delivered to the customer, provided all other criteria for revenue recognition have been met. We also offer products via a software-as-a-service ("SaaS") model, which is a subscription based model. Subscription revenue derived from these agreements is generally recognized on a straight-line basis over the subscription term, provided persuasive evidence of an arrangement exists, access to our software has been granted to the customer, the fee for the subscription is fixed or determinable, and collection of the subscription fee is probable. We generally sell our software licenses with maintenance services and, in some cases, also with consulting services. For these multiple element arrangements, we allocate revenue to the delivered elements of the arrangement using the residual method, whereby revenue is allocated to the undelivered elements based on vendor specific objective evidence ("VSOE") of fair value of the undelivered elements with the remaining arrangement fee allocated to the delivered elements and recognized as revenue assuming all other revenue recognition criteria are met. For the undelivered elements, we determine VSOE of fair value to be the price charged when the undelivered element is sold separately. We determine VSOE for maintenance sold in connection with a software license based on the amount that will be separately charged for the maintenance renewal period. Substantially all license arrangements indicate the renewal rate for which customers may, at their option, renew their maintenance agreement. We determine VSOE for consulting services by reference to the amount charged for similar engagements when a software license sale is not involved. We review services sold separately on a periodic basis and update, when appropriate, our VSOE of fair value for such maintenance and services to ensure that it reflects our recent pricing experience. If VSOE of fair value for the undelivered elements cannot be established, we defer all revenue from the arrangement until the earlier of the point at which such sufficient VSOE does exist or all elements of the arrangement have been delivered, or if the only undelivered element is maintenance, then we recognize the entire fee ratably over the maintenance period. If payment of the software license fees is dependent upon the performance of consulting services or the consulting services are essential to the functionality of the licensed software, then we recognize both the software license and consulting fees using the completed contract method. Sales taxes collected from customers and remitted to government authorities are excluded from revenue. Deferred revenue generally results from contractual billings for which revenue has not been recognized and consists of the unearned portion of license, maintenance, and services fees. Deferred revenue expected to be recognized as revenue more than one year subsequent to the balance sheet date is included in long-term liabilities in the consolidated balance sheets. Advertising Costs Advertising costs are expensed as incurred and were $1.4 million , $1.5 million , and $2.9 million in fiscal years 2018 , 2017 , and 2016 , respectively. Warranty Costs We make periodic provisions for expected warranty costs. Historically, warranty costs have been insignificant. Stock-Based Compensation Stock-based compensation expense reflects the fair value of stock-based awards, less the present value of expected dividends, measured at the grant date and recognized over the relevant service period. We estimate the fair value of each stock-based award on the measurement date using either the current market price of the stock, the Black-Scholes option valuation model, or the Monte Carlo Simulation valuation model. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. We recognize stock-based compensation expense related to options and restricted stock units on a straight-line basis over the service period of the award, which is generally 4 or 5 years for options and 3 years for restricted stock units. We recognize stock-based compensation expense related to performance stock units and our employee stock purchase plan using an accelerated attribution method. Fees Related to Shareholder Activist In September 2017, Praesidium Investment Management, then one of our largest stockholders, publicly announced its disagreement with our strategy in a Schedule 13D filed with the Securities and Exchange Commission (the “SEC”) and stated that it was seeking changes in the composition of our Board of Directors. In fiscal years 2017 and 2018, we incurred professional and other fees relating to Praesidium’s actions. Acquisition-Related Costs Acquisition-related costs are expensed as incurred and include those costs incurred as a result of a business combination. These costs consist of professional services fees, including third-party legal and valuation-related fees, as well as retention fees and earn-out payments treated as compensation expense. We incurred $0.3 million , $1.5 million , and $1.2 million of acquisition-related costs, which are included in acquisition-related expenses in our consolidated statement of operations, for the fiscal years ended November 30, 2018 , November 30, 2017 , and November 30, 2016 , respectively. Restructuring Charges Our restructuring charges are comprised primarily of costs related to property abandonment, including future lease commitments, net of any sublease income, and associated leasehold improvements; and employee termination costs related to headcount reductions. We recognize and measure restructuring liabilities initially at fair value when the liability is incurred. We incurred $2.3 million , $22.2 million , and $1.7 million of restructuring related costs, which are included in restructuring expenses in our consolidated statement of operations, for the fiscal years ended November 30, 2018 , November 30, 2017 , and November 30, 2016 , respectively. Income Taxes We provide for deferred income taxes resulting from temporary differences between financial and taxable income. We record valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. We recognize and measure uncertain tax positions taken or expected to be taken in a tax return utilizing a two-step approach. We first determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is that we measure the tax benefit as the largest amount that is more likely than not to be realized upon ultimate settlement. We recognize interest and penalties related to uncertain tax positions in our provision for income taxes on our consolidated statements of operations. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 is intended to simplify various aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance in ASU 2016-09 is required for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The standard requires, on a prospective basis, the recognition of all excess tax benefits and tax deficiencies as income tax benefit or expense in the statement of operations and the tax effect of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. The excess tax benefits and tax deficiencies should not be considered in an entity's calculation of its annual estimated effective tax rate and, as excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method to calculate diluted earnings per share should exclude such excess tax benefits. Further, on either a prospective or retrospective basis, excess tax benefits should be classified as operating activities in the statement of cash flows. The standard also provides entities the option to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur, which is to be applied in accordance with a modified retrospective transition. Additionally, the standard updates the threshold to qualify for equity classification for minimum statutory tax withholding requirements by permitting an entity to withhold up to the maximum statutory rates in the applicable jurisdictions, applied on a modified retrospective basis. Finally, the standard requires that cash paid by an employer to a taxing authority when directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows, applied retrospectively. We adopted this standard at the beginning of the first quarter of fiscal year 2018 and elected to classify excess tax benefits as operating activities on a prospective basis in the consolidated statement of cash flows. As such, the prior period consolidated statement of cash flows was not adjusted. Further, during the fiscal year ended November 30, 2018, we recognized excess tax benefits of $0.9 million related to the exercise of stock options and vesting of restricted stock awards. We also elected to account for forfeitures as they occur and recorded a cumulative-effect adjustment of $0.6 million to retained earnings during the period of adoption. The adoption of ASU 2016-09 did not have a material impact on our consolidated financial position, results of operations, and cash flows. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"). ASU 2018-15 amends current guidance to align the accounting for costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs associated with developing or obtaining internal-use software. Capitalized implementation costs must be expensed over the term of the hosting arrangement and presented in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement. The guidance in ASU 2018-15 is effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently accounting for costs incurred in a cloud computing arrangement in accordance with the guidance provided in ASU 2018-15. In August 2017, the FASB issued Accounting Standards Update No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"). ASU 2017-12 intends to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance in ASU 2017-12 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In January 2017, the FASB issued Accounting Standards Up |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 12 Months Ended |
Nov. 30, 2018 | |
Investments and Cash [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2018 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 101,316 $ — $ — $ 101,316 Money market funds 3,810 — — 3,810 State and municipal bond obligations 19,542 — (119 ) 19,423 U.S. treasury bonds 6,726 — (21 ) 6,705 Corporate bonds 8,329 — (70 ) 8,259 Total $ 139,723 $ — $ (210 ) $ 139,513 A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2017 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 130,547 $ — $ — $ 130,547 Money market funds 2,917 — — 2,917 State and municipal bond obligations 40,458 — (231 ) 40,227 U.S. treasury bonds 3,517 — (26 ) 3,491 Corporate bonds 6,463 — (36 ) 6,427 Total $ 183,902 $ — $ (293 ) $ 183,609 Such amounts are classified on our consolidated balance sheets as follows (in thousands): November 30, 2018 November 30, 2017 Cash and Equivalents Short-Term Investments Cash and Equivalents Short-Term Investments Cash $ 101,316 $ — $ 130,547 $ — Money market funds 3,810 — 2,917 — State and municipal bond obligations — 19,423 — 40,227 U.S. treasury bonds — 6,705 — 3,491 Corporate bonds — 8,259 — 6,427 Total $ 105,126 $ 34,387 $ 133,464 $ 50,145 The fair value of debt securities by contractual maturity is as follows (in thousands): November 30, November 30, Due in one year or less $ 25,051 $ 22,333 Due after one year (1) 9,336 27,812 Total $ 34,387 $ 50,145 (1) Includes state and municipal bond obligations and corporate bonds, which are securities representing investments available for current operations and are classified as current on the consolidated balance sheets. We did not hold any investments with continuous unrealized losses as of November 30, 2018 or November 30, 2017 . |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Nov. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We generally use forward contracts that are not designated as hedging instruments to hedge economically the impact of the variability in exchange rates on intercompany accounts receivable and loans receivable denominated in certain foreign currencies. We generally do not hedge the net assets of our international subsidiaries. All forward contracts are recorded at fair value on the consolidated balance sheets at the end of each reporting period and expire between 30 days and 366 days from the date the contract was entered. At November 30, 2018 , $0.3 million and $0.1 million was recorded in other noncurrent liabilities and other current assets on the consolidated balance sheet, respectively. At November 30, 2017 , $0.2 million and $0.2 million was recorded in other accrued liabilities and other assets on the consolidated balance sheet, respectively. In fiscal year 2018 , realized and unrealized losses of $6.9 million from our forward contracts were recognized in foreign currency loss, net on the consolidated statement of operations. In fiscal years 2017 and 2016 , realized and unrealized gains of $9.4 million and realized and unrealized losses of $4.0 million , respectively, from our forward contracts were recognized in foreign currency loss, net on the consolidated statements of operations. These losses and gains were substantially offset by realized and unrealized gains and losses on the offsetting positions. The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands): November 30, 2018 November 30, 2017 Notional Value Fair Value Notional Value Fair Value Forward contracts to sell U.S. dollars $ 105,830 $ (170 ) $ 119,192 $ (27 ) Forward contracts to purchase U.S. dollars 240 — 462 — Total $ 106,070 $ (170 ) $ 119,654 $ (27 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2018 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 3,810 $ 3,810 $ — $ — State and municipal bond obligations 19,423 — 19,423 — U.S. treasury bonds 6,705 — 6,705 — Corporate bonds 8,259 — 8,259 — Liabilities Foreign exchange derivatives $ (170 ) $ — $ (170 ) $ — The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2017 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 2,917 $ 2,917 $ — $ — State and municipal bond obligations 40,227 — 40,227 — U.S. treasury bonds 3,491 — 3,491 — Corporate bonds 6,427 — 6,427 — Liabilities Foreign exchange derivatives $ (27 ) $ — $ (27 ) $ — When developing fair value estimates, we maximize the use of observable inputs and minimize the use of unobservable inputs. When available, we use quoted market prices to measure fair value. The valuation technique used to measure fair value for our Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, we are required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. Nonrecurring Fair Value Measurements During fiscal year 2018, certain assets were measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3). We did not have any nonrecurring fair value measurements as of November 30, 2017. During the fourth quarter of fiscal year 2018, we reclassified certain corporate land and building assets previously reported as property and equipment, net to assets held for sale on our consolidated balance sheet. As a result, we recognized an impairment charge of $5.1 million based on the fair value measurement of the assets, which represents the difference between the fair value less cost to sell and the carrying value of the assets. The impairment charge was recorded to loss on assets held for sale within operating expenses on our fiscal year 2018 consolidated statement of operations. The fair value measurements of the assets held for sale were measured using third-party valuation models and were determined using an income-based valuation methodology, which includes discounted expected cash flows. As the discounted cash flows represent unobservable inputs, the fair value was classified as a Level 3 measurement within the fair value hierarchy. The expected cash flows include proceeds from the sale, offset by the costs incurred to sell the assets. The following table presents nonrecurring fair value measurements as of November 30, 2018 (in thousands): Total Fair Value Total Losses Assets held for sale $ 5,776 $ 5,147 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Nov. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following (in thousands): November 30, 2018 November 30, 2017 Computer equipment and software $ 47,266 $ 50,588 Land, buildings and leasehold improvements 34,676 50,229 Furniture and fixtures 6,104 7,211 Capitalized software development costs 276 2,955 Property and equipment, gross 88,322 110,983 Less accumulated depreciation and amortization (57,608 ) (68,722 ) Property and equipment, net $ 30,714 $ 42,261 Depreciation and amortization expense related to property and equipment was $6.9 million , $7.5 million , and $8.5 million for the years ended November 30, 2018 , 2017 , and 2016 , respectively. In the fourth quarter of fiscal year 2018, we reclassified certain corporate land and building assets previously reported as property and equipment to assets held for sale on our consolidated balance sheet as we expect to sell them within one year. Refer to Note 4 for further discussion. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Nov. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets Intangible assets are comprised of the following significant classes (in thousands): November 30, 2018 November 30, 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology $ 154,301 $ (110,959 ) $ 43,342 $ 154,301 $ (88,224 ) $ 66,077 Customer-related 67,802 (56,589 ) 11,213 67,802 (46,230 ) 21,572 Trademarks and trade names 17,740 (13,376 ) 4,364 17,740 (10,495 ) 7,245 Total $ 239,843 $ (180,924 ) $ 58,919 $ 239,843 $ (144,949 ) $ 94,894 We amortize intangible assets assuming no expected residual value. Amortization expense related to these intangible assets was $36.0 million , $33.1 million and $28.2 million in fiscal years 2018 , 2017 and 2016 , respectively. During the third quarter of fiscal year 2016, we evaluated the ongoing value of the intangible assets associated with the technology obtained in connection with the acquisition of Modulus. As a result of our decision to abandon the related assets due to a change in our expected ability to use the technology internally, we determined that the intangible assets were fully impaired. As a result, we incurred an impairment charge of $5.1 million in the third quarter of fiscal year 2016. Future amortization expense for intangible assets as of November 30, 2018 is as follows (in thousands): 2019 $ 34,932 2020 10,152 2021 10,033 2022 3,802 Total $ 58,919 Goodwill Changes in the carrying amount of goodwill for fiscal years 2018 and 2017 are as follows (in thousands): November 30, 2018 November 30, 2017 Balance, beginning of year $ 315,041 $ 278,067 Additions — 36,934 Translation adjustments (49 ) 40 Balance, end of year $ 314,992 $ 315,041 The additions to goodwill during fiscal year 2017 are related to the acquisitions of DataRPM in March 2017 and Kinvey in June 2017 (Note 7). Changes in the carrying amount of goodwill by reportable segment for fiscal year 2018 are as follows (in thousands): November 30, 2017 Translation adjustments November 30, 2018 OpenEdge $ 249,036 $ (49 ) $ 248,987 Data Connectivity and Integration 19,040 — 19,040 Application Development and Deployment 46,965 — 46,965 Total goodwill $ 315,041 $ (49 ) $ 314,992 Impairment of Goodwill We assess the impairment of goodwill on an annual basis and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. During fiscal year 2018 , we tested goodwill for impairment for each of our reporting units as of October 31, 2018 . Our reporting units each had fair values which significantly exceeded their carrying values as of the annual impairment date. We did not recognize any goodwill impairment charges during fiscal years 2018 or 2017. During fiscal year 2016, we recognized a $92 million goodwill impairment loss related to our Application Development and Deployment reporting unit. To determine the fair value of our Application Development and Deployment reporting unit as part of the two-step test for goodwill impairment as of October 31, 2016, we concluded that a combination of the income approach and the market approach was most appropriate. The fair value of this reporting unit was negatively impacted by reduced future growth expectations resulting from a comprehensive review of our strategy and operations by our Chief Executive Officer, our Board of Directors, and the executive management team. Based on this analysis, the implied fair value of goodwill was substantially lower than the carrying value of goodwill for the reporting unit, resulting in the $92 million goodwill impairment loss. This impairment loss was recorded to impairment of goodwill within operating expenses in our fiscal year 2016 consolidated statement of operations. The evaluation of goodwill for impairment requires significant judgment. While we believe that the assumptions used in our impairment test are reasonable, the analysis is sensitive to adverse changes used in the assumptions of the valuations. In particular, changes in the projected cash flows, the discount rate, the terminal year growth rate and market multiple assumptions could produce significantly different results for the impairment analyses. In the event of future changes in business conditions, we will be required to reassess and update our forecasts and estimates used in future impairment analyses. If the results of these analyses are lower than current estimates, a material impairment charge may result at that time. |
Business Combinations
Business Combinations | 12 Months Ended |
Nov. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Kinvey Acquisition On June 1, 2017, we acquired by merger 100% of the outstanding securities of Kinvey for an aggregate sum of $49.2 million , which includes approximately $0.3 million held-back from the founder of Kinvey as an incentive to remain with the Company for at least two years following the acquisition. The $0.3 million held-back was recorded to expense over the service period, which ended prior to the expiration of the two years. Kinvey allows developers to set up, use, and operate a serverless cloud backend for any native, hybrid, web, or IoT app built using any development tools. This acquisition, in combination with our existing frontend technologies, cognitive capabilities from DataRPM, our strong business logic and rules capabilities, and our strong data connectivity technologies, enables us to offer a premier high productivity platform for building and delivering cognitive business applications. The acquisition was accounted for as a business combination, and accordingly, the results of operations of Kinvey are included in our operating results as part of the OpenEdge business segment from the date of acquisition. We paid the purchase price in cash from available funds. The total consideration, less the $0.3 million held-back discussed above, which is considered to be a compensation arrangement, was allocated to Kinvey's tangible assets, identifiable intangible assets and assumed liabilities based on their estimated fair values. The excess of the total consideration, less the amount held-back from the founder, over the tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. The allocation of the purchase price was completed in the fourth quarter of fiscal year 2017 upon the finalization of our valuation of identifiable intangible assets and deferred taxes. The allocation of the purchase price is as follows (in thousands): Total Life Net working capital $ (963 ) Property, plant and equipment 26 Purchased technology 22,100 5 Years Trade name 1,800 5 Years Customer relationships 100 5 Years Net deferred tax assets 1,465 Goodwill 24,351 Net assets acquired $ 48,879 The fair value of the intangible assets was estimated using the income approach in which the after-tax cash flows are discounted to present value. The cash flows are based on estimates used to price the acquisition, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model as well as the weighted average cost of capital. Deferred taxes include deferred tax liabilities resulting from the tax effects of fair value adjustments related to identifiable intangible assets, which are more than offset by the value of deferred tax assets acquired from Kinvey. Tangible assets acquired and assumed liabilities were recorded at fair value. We recorded the excess of the purchase price over the identified tangible and intangible assets as goodwill. We believe that the investment value of the future enhancement of our product and solution offerings created as a result of this acquisition has principally contributed to a purchase price that resulted in the recognition of $24.4 million of goodwill, which is not deductible for tax purposes. Acquisition-related transaction costs (e.g., legal, due diligence, valuation, and other professional fees) are not included as a component of consideration paid, but are required to be expensed as incurred. During the fiscal years ended November 30, 2018 and 2017 , we incurred approximately $0.3 million and $1.1 million , respectively, of acquisition-related costs, which are included in acquisition-related expenses in our consolidated statement of operations. We have not disclosed the amount of revenues and earnings of Kinvey since acquisition, nor pro forma financial information, as those amounts are not significant to our consolidated financial statements. DataRPM Acquisition On March 1, 2017, we acquired by merger 100% of the outstanding securities of DataRPM for an aggregate sum of $30.0 million . Approximately $1.7 million of the purchase price was paid to DataRPM’s founders in the form of restricted stock units, subject to a two -year vesting schedule and continued employment. DataRPM is a leader in cognitive predictive maintenance for the industrial IoT ("IIoT") market. The acquisition is a key part of the Company's strategy to provide the best platform to build and deliver cognitive applications. The acquisition was accounted for as a business combination, and accordingly, the results of operations of DataRPM are included in our operating results as part of the OpenEdge business segment from the date of acquisition. We paid the purchase price in cash from available funds. The total consideration, less the fair value of the granted restricted stock units discussed above, which are considered compensation arrangements, was allocated to DataRPM’s tangible assets, identifiable intangible assets and assumed liabilities based on their estimated fair values. The excess of the total consideration, less the fair value of the restricted stock units, over the tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. The allocation of the purchase price was completed in the fourth quarter of fiscal year 2017 upon the finalization of our valuation of identifiable intangible assets and deferred taxes. The allocation of the purchase price is as follows (in thousands): Total Life Net working capital $ (174 ) Property, plant and equipment 68 Purchased technology 19,900 5 Years Trade name 800 5 Years Customer relationships 100 5 Years Deferred taxes (5,006 ) Goodwill 12,583 Net assets acquired $ 28,271 The fair value of the intangible assets was estimated using the income approach in which the after-tax cash flows are discounted to present value. The cash flows are based on estimates used to price the acquisition, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model as well as the weighted average cost of capital. Deferred taxes include deferred tax liabilities resulting from the tax effects of fair value adjustments related to identifiable intangible assets, partially offset by the fair value of deferred tax assets acquired from DataRPM. Tangible assets acquired and assumed liabilities were recorded at fair value. We recorded the excess of the purchase price over the identified tangible and intangible assets as goodwill. We believe that the investment value of the future enhancement of our product and solution offerings created as a result of this acquisition has principally contributed to a purchase price that resulted in the recognition of $12.6 million of goodwill, which is not deductible for tax purposes. As discussed above, approximately $1.7 million of the total consideration was paid to DataRPM’s founders in restricted stock units, subject to a vesting schedule and continued employment. We concluded that the restricted stock units are compensation arrangements and we are recognizing stock-based compensation expense in accordance with the vesting schedule over the service period of the awards, which is 2 years . During the fiscal years ended November 30, 2018 and 2017 , we incurred stock-based compensation expense related to these restricted stock units of $0.1 million and $0.4 million , respectively. The expense was lower in fiscal 2018 due to the forfeiture of the restricted stock units held by one of the founders as a result of his termination of employment. These amounts are included in operating expenses in our consolidated statement of operations. Acquisition-related transaction costs (e.g., legal, due diligence, valuation, and other professional fees) are not included as a component of consideration transferred, but are required to be expensed as incurred. During the fiscal year ended November 30, 2018 , we did no t incur any acquisition-related costs. During the fiscal year ended November 30, 2017 , we incurred approximately $0.4 million of acquisition-related costs, which are included in acquisition-related expenses in our consolidated statement of operations. We have not disclosed the amount of revenues and earnings of DataRPM since acquisition, nor pro forma financial information, as those amounts are not significant to our consolidated financial statements. |
Term Loan and Line of Credit
Term Loan and Line of Credit | 12 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Term Loan and Line of Credit | Term Loan and Line of Credit Our credit agreement provides for a $123.8 million secured term loan and a $150.0 million secured revolving credit facility. The revolving credit facility may be made available in U.S. Dollars and certain other currencies and may be increased by up to an additional $125.0 million if the existing or additional lenders are willing to make such increased commitments. The revolving credit facility has sublimits for swing line loans up to $25.0 million and for the issuance of standby letters of credit in a face amount up to $25.0 million . We expect to use the revolving credit facility for general corporate purposes, including acquisitions of other businesses, and may also use it for working capital. The credit facility matures on November 20, 2022 , when all amounts outstanding will be due and payable in full. The revolving credit facility does not require amortization of principal. The outstanding balance of the term loan as of November 30, 2018 was $117.6 million , with $6.2 million due in the next 12 months. The term loan requires repayment of principal at the end of each fiscal quarter, beginning with the fiscal quarter ended February 28, 2018 . The principal repayment amounts are in accordance with the following schedule: (i) eight payments of $1.5 million each, (ii) four payments of $2.3 million each, (iii) four payments of $3.1 million each, (iv) three payments of $3.9 million each, and (v) the last payment is of the remaining principal amount. Any amounts outstanding under the term loan thereafter would be due on the maturity date. The term loan may be prepaid before maturity in whole or in part at our option without penalty or premium. As of November 30, 2018 , the carrying value of the term loan approximates the fair value, based on Level 2 inputs (observable market prices in less than active markets), as the interest rate is variable over the selected interest period and is similar to current rates at which we can borrow funds. The average interest rate of the credit facility during the fiscal year ended November 30, 2018 was 3.43% and the interest rate as of November 30, 2018 was 3.81% . Costs incurred to obtain our long-term debt of $1.8 million are recorded as debt issuance costs as a direct deduction from the carrying value of the debt liability on our consolidated balance sheets as of November 30, 2018 . These costs are being amortized over the term of the debt agreement using the effective interest rate method. Amortization expense related to the debt issuance costs of $0.4 million for the fiscal years ended November 30, 2018 , 2017 , and 2016 , respectively, is recorded in interest expense on our consolidated statements of operations. Revolving loans may be borrowed, repaid, and reborrowed until November 20, 2022 , at which time all amounts outstanding must be repaid. As of November 30, 2018 , there were no amounts outstanding under the revolving line and $1.3 million of letters of credit. As of November 30, 2018 , aggregate principal payments of long-term debt for the next five years are (in thousands): 2019 $ 6,188 2020 9,281 2021 12,375 2022 89,719 Total $ 117,563 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Nov. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leasing Arrangements We lease certain facilities and equipment under non-cancelable operating lease arrangements. Future minimum rental payments under these leases are as follows at November 30, 2018 (in thousands): 2019 $ 6,256 2020 5,163 2021 3,373 2022 2,709 2023 2,746 Thereafter 4,337 Total $ 24,584 Our operating lease arrangements are subject to customary renewal and base rental fee escalation clauses. Total rent expense, net of sublease income which is insignificant, under operating lease arrangements was approximately $6.8 million , $6.9 million and $8.0 million in fiscal years 2018 , 2017 and 2016 , respectively. Guarantees and Indemnification Obligations We include standard intellectual property indemnification provisions in our licensing agreements in the ordinary course of business. Pursuant to our product license agreements, we will indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally business partners or customers, in connection with certain patent, copyright or other intellectual property infringement claims by third parties with respect to our products. Other agreements with our customers provide indemnification for claims relating to property damage or personal injury resulting from the performance of services by us or our subcontractors. Historically, our costs to defend lawsuits or settle claims relating to such indemnity agreements have been insignificant. Accordingly, the estimated fair value of these indemnification provisions is immaterial. Legal Proceedings We are subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe that the outcome of any of these other legal matters will have a material effect on our financial position, results of operations or cash flows. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Nov. 30, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Preferred Stock Our Board of Directors is authorized to establish one or more series of preferred stock and to fix and determine the number and conditions of preferred shares, including dividend rates, redemption and/or conversion provisions, if any, preferences and voting rights. As of November 30, 2018 , there was no preferred stock issued or outstanding. Common Stock We have 200,000,000 shares of authorized common stock, $0.01 par value per share, of which 45,114,935 were issued and outstanding at November 30, 2018 . There were 136,388 deferred stock units ("DSUs") outstanding at November 30, 2018 . Each DSU represents one share of our common stock and all DSU grants have been made to non-employee members of our Board of Directors. DSUs do not have voting rights and can only be converted into common stock when the recipient ceases to be a member of the Board of Directors or a change in control of the Company occurs. During the fiscal year ended November 30, 2018 , we released 13,995 DSUs as a result of one individual leaving our Board of Directors. Common Stock Repurchases In September 2017, our Board of Directors increased our total share repurchase authorization to $250.0 million . In fiscal years 2018 and 2017 , we repurchased and retired 2.9 million shares of our common stock for $120.0 million and 2.2 million shares of our common stock for $73.9 million , respectively, under this current authorization. In fiscal year 2016, we repurchased and retired 3.1 million shares of our common stock for $79.2 million . As of November 30, 2018 , there was $100.0 million remaining under the current authorization. Dividends On September 27, 2016, our Board of Directors approved the initiation of a quarterly cash dividend of $0.125 per share of common stock to Progress stockholders. We began paying quarterly cash dividends of $0.125 per share of common stock to Progress stockholders in December 2016 and increased the quarterly cash dividend to $0.14 per share in September 2017. On September 21, 2018, our Board of Directors approved an 11% increase to our quarterly cash dividend from $0.14 to $0.155 per share of common stock. We have declared aggregate per share quarterly cash dividends totaling $0.575 , $0.515 and $0.125 for the years ended November 30, 2018 , November 30, 2017 and November 30, 2016 , respectively. We have paid aggregate cash dividends totaling $25.8 million , and $24.1 million for the years ended November 30, 2018 and November 30, 2017 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Nov. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We currently have one stockholder-approved stock plan from which we can issue stock-based awards, which was approved by our stockholders in fiscal year 2008 ("2008 Plan"). The 2008 Plan replaced the 1992 Incentive and Nonqualified Stock Option Plan, the 1994 Stock Incentive Plan and the 1997 Stock Incentive Plan (collectively, the “Previous Plans”). The Previous Plans solely exist to satisfy outstanding options previously granted under those plans. The 2008 Plan permits the granting of stock awards to officers, members of the Board of Directors, employees and consultants. Awards under the 2008 Plan may include nonqualified stock options, incentive stock options, grants of conditioned or restricted stock, unrestricted grants of stock, grants of stock contingent upon the attainment of performance goals, deferred stock units and stock appreciation rights. A total of 54,510,000 shares are issuable under these plans, of which 2,537,256 shares were available for grant as of November 30, 2018 . We have adopted two stock plans for which the approval of stockholders was not required: the 2002 Nonqualified Stock Plan ("2002 Plan") and the 2004 Inducement Stock Plan ("2004 Plan"). The 2002 Plan permits the granting of stock awards to non-executive officer employees and consultants. Executive officers and members of the Board of Directors are not eligible for awards under the 2002 Plan. Awards under the 2002 Plan may include nonqualified stock options, grants of conditioned or restricted stock, unrestricted grants of stock, grants of stock contingent upon the attainment of performance goals and stock appreciation rights. A total of 9,750,000 shares are issuable under the 2002 Plan, of which 650,169 shares were available for grant as of November 30, 2018 . The 2004 Plan is reserved for persons to whom we may issue securities as an inducement to become employed by us pursuant to the rules and regulations of the NASDAQ Stock Market. Awards under the 2004 Plan may include nonqualified stock options, grants of conditioned or restricted stock, unrestricted grants of stock, grants of stock contingent upon the attainment of performance goals and stock appreciation rights. A total of 1,500,000 shares are issuable under the 2004 Plan, of which 583,021 shares were available for grant as of November 30, 2018 . Under all of our plans, the options granted generally begin to vest within one year of the grant. A summary of stock option activity under all the plans is as follows: Shares Weighted Average Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (1) (in thousands) Exercise Price (in years) (in thousands) Options outstanding, December 1, 2017 1,002 $ 28.29 Granted 482 49.56 Exercised (189 ) 23.40 Canceled (188 ) 34.38 Options outstanding, November 30, 2018 1,107 $ 37.82 5.61 $ 3,610 Exercisable, November 30, 2018 269 $ 33.80 5.33 $ 1,206 Vested or expected to vest, November 30, 2018 1,107 $ 37.82 5.61 $ 3,610 (1) The aggregate intrinsic value was calculated based on the difference between the closing price of our stock on November 30, 2018 of $35.16 and the exercise prices for all options outstanding. A summary of restricted stock units activity is as follows (in thousands, except per share data): Number of Shares Weighted Average Fair Value Restricted stock units outstanding, December 1, 2017 1,136 $ 28.15 Granted 362 49.06 Issued (393 ) 30.00 Canceled (193 ) 28.61 Restricted stock units outstanding, November 30, 2018 912 $ 35.46 Each restricted stock unit represents one share of common stock. The restricted stock units generally vest semi-annually over a three -year period. Performance-based restricted stock units are subject to performance criteria aligned with our business plan and are earned only to the extent the performance criteria are achieved, with any awards earned being subject to subsequent time-based vesting similar to that discussed above. The fair value of outright stock awards, restricted stock units and DSUs is equal to the closing price of our common stock on the date of grant, less the present value of expected dividends, as the recipient is not entitled to dividends during the requisite service period. In addition, during fiscal years 2016 and 2017, we granted performance-based restricted stock units that include a three -year market condition under a Long-Term Incentive Plan (“LTIP”) where the performance measurement period is three years. Vesting of the LTIP awards is based on our level of attainment of specified total stockholder return ("TSR") targets relative to the percentage appreciation of a specified index of companies for the respective three -year periods and is also subject to the continued employment of the grantees. In order to estimate the fair value of such awards, we used a Monte Carlo Simulation valuation model. The performance measurement period related to the LTIP awards granted during fiscal year 2016 ended as of November 30, 2018. As the level of attainment of the specified TSR target was not met, none of the LTIP awards under this grant vested. During the first quarter of fiscal year 2018, we granted performance-based restricted stock units that include two performance metrics under the LTIP where the performance measurement period is three years. Vesting of the 2018 LTIP awards is as follows: (i) 50% is based on the three -year market condition as described above (TSR), and (ii) 50% is based on achievement of a three -year cumulative performance condition (operating income). In order to estimate the fair value of such awards, we used a Monte Carlo Simulation valuation model for the market condition portion of the award, and used the closing price of our common stock on the date of grant, less the present value of expected dividends, for the portion related to the performance condition. The 1991 Employee Stock Purchase Plan ("ESPP") permits eligible employees to purchase up to an aggregate of 9,450,000 shares of our common stock through accumulated payroll deductions. The ESPP has a 27 -month offering period comprised of nine three -month purchase periods. The purchase price of the stock is equal to 85% of the lesser of the market value of such shares at the beginning of a 27 -month offering period or the end of each three-month segment within such offering period. If the market price at any of the nine purchase periods is less than the market price on the first date of the 27 -month offering period, subsequent to the purchase, the offering period is canceled and the employee is entered into a new 27 -month offering period with the then current market price as the new base price. We issued 225,000 shares, 220,000 shares and 266,000 shares with weighted average purchase prices of $24.27 , $22.27 and $20.01 per share, respectively, in fiscal years 2018 , 2017 and 2016 , respectively. At November 30, 2018 , approximately 590,000 shares were available and reserved for issuance under the ESPP. We estimated the fair value of stock options and ESPP awards granted in fiscal years 2018 , 2017 and 2016 on the measurement dates using the Black-Scholes option valuation model, and LTIP awards using the Monte Carlo Simulation valuation model, with the following weighted average assumptions: Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Stock options: Expected volatility 22.8 % 25.0 % — % Risk-free interest rate 2.3 % 1.9 % — % Expected life (in years) 4.8 4.8 0 Expected dividend yield 1.1 % 1.7 % — % Employee stock purchase plan: Expected volatility 23.8 % 22.9 % 25.3 % Risk-free interest rate 2.3 % 1.2 % 0.6 % Expected life (in years) 1.7 1.5 1.6 Expected dividend yield 1.5 % 1.6 % — % Long-term incentive plan: Expected volatility 27.4 % 27.5 % 27.1 % Risk-free interest rate 2.1 % 1.4 % 1.0 % Expected life (in years) 2.9 2.7 2.7 Expected dividend yield 1.7 % 1.8 % — % For each stock option award, the expected life in years is based on historical exercise patterns and post-vesting termination behavior. Expected volatility is based on historical volatility of our stock, and the risk-free interest rate is based on the U.S. Treasury yield curve for the period that is commensurate with the expected life at the time of grant. The expected annual dividend yield is based on the weighted-average of the dividend yield assumptions used for options granted during the applicable period. For each ESPP award, the expected life in years is based on the period of time between the beginning of the offering period and the date of purchase, plus an additional holding period of three months. Expected volatility is based on historical volatility of our stock, and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at each purchase period. The expected annual dividend yield is based on the weighted-average of the dividend yield assumptions used for options granted during the applicable period. Based on the above assumptions, the weighted average estimated fair value of stock options granted in fiscal years 2018 , 2017 , and 2016 was $10.30 , $5.95 and $0 per share, respectively. We amortize the estimated fair value of stock options to expense over the vesting period using the straight-line method. The weighted average estimated fair value for shares issued under our ESPP in fiscal years 2018 , 2017 and 2016 was $10.24 , $8.32 and $7.43 per share, respectively. We amortize the estimated fair value of shares issued under the ESPP to expense over the vesting period using a graded vesting model. Total unrecognized stock-based compensation expense, net of expected forfeitures, related to unvested stock options and unvested restricted stock awards amounted to $28.6 million at November 30, 2018 . These costs are expected to be recognized over a weighted average period of 2.1 years. The following additional activity occurred under our plans (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Total intrinsic value of stock options on date exercised $ 3,692 $ 1,622 $ 2,017 Total fair value of deferred stock units on date vested 1,690 57 — Total fair value of restricted stock units on date vested 14,741 20,032 17,213 The following table provides the classification of stock-based compensation as reflected in our consolidated statements of operations (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Cost of maintenance and services $ 616 $ 1,016 $ 899 Sales and marketing 2,959 2,214 4,093 Product development 8,242 4,576 9,965 General and administrative 8,752 6,347 7,584 Total stock-based compensation $ 20,569 $ 14,153 $ 22,541 Income tax benefit included in the provision for income taxes from continuing operations $ 4,345 $ 4,057 $ 5,208 Separation Arrangements During fiscal year 2017, we entered into separation agreements with three executives, which entitled them to accelerated vesting of certain stock-based awards. Due to the separation and accelerated vesting, we recognized additional stock-based compensation expense of $1.5 million , of which $0.8 million was recorded as sales and marketing expense and $0.7 million was recorded as general and administrative expense, in the consolidated statement of operations. During fiscal year 2016, we entered into separation agreements with two executives, which entitled them to accelerated vesting of certain stock-based awards. Due to the separation and accelerated vesting, we recognized additional stock-based compensation expense of $0.3 million , of which $0.2 million was recorded as sales and marketing expense and $0.1 million was recorded as product development expense, in the consolidated statement of operations. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Nov. 30, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Plan | Retirement Plan We maintain a retirement plan covering all U.S. employees under Section 401(k) of the Internal Revenue Code. Company contributions to the plan are at the discretion of the Board of Directors and totaled approximately $3.1 million , $2.1 million and $2.5 million for fiscal years 2018 , 2017 and 2016 , respectively. |
Restructuring
Restructuring | 12 Months Ended |
Nov. 30, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring | Restructuring The following table provides a summary of activity for all of the restructuring actions, which are detailed further below (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2015 $ 412 $ 2,949 $ 3,361 Costs incurred 319 1,373 1,692 Cash disbursements (633 ) (2,906 ) (3,539 ) Translation adjustments and other 9 27 36 Balance, November 30, 2016 $ 107 $ 1,443 $ 1,550 Costs incurred 2,655 19,555 22,210 Cash disbursements (1,456 ) (17,778 ) (19,234 ) Asset impairment (762 ) — (762 ) Translation adjustments and other 26 336 362 Balance, November 30, 2017 $ 570 $ 3,556 $ 4,126 Costs incurred 1,011 1,240 2,251 Cash disbursements (1,309 ) (4,802 ) (6,111 ) Translation adjustments and other 35 10 45 Balance, November 30, 2018 $ 307 $ 4 $ 311 2017 Restructuring During the first quarter of fiscal year 2017, we undertook certain operational restructuring initiatives intended to significantly reduce annual costs. As part of this action, management committed to a new strategic plan highlighted by a new product strategy and a streamlined operating approach. To execute these operational restructuring initiatives, we reduced our global workforce by over 20% . These workforce reductions occurred in substantially all functional units and across all geographies in which we operate. During the fourth quarter of fiscal year 2017, we incurred additional costs with respect to this restructuring, including reduction in redundant positions primarily within the product development and sales functions. We also consolidated offices in various locations during fiscal years 2017 and 2018. We expect to incur additional expenses related to facility closures as part of this restructuring action through fiscal year 2019, but we do not expect these additional costs to be material. Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation), facilities costs, which include fees to terminate lease agreements and costs for unused space, net of sublease assumptions, and other costs, which include asset impairment charges. As part of this fiscal year 2017 restructuring, for the fiscal years ended November 30, 2018 and 2017 , we incurred expenses of $2.3 million and $22.1 million , respectively, which are recorded as restructuring expenses in the consolidated statements of operations. A summary of activity for this restructuring action is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2016 $ — $ — $ — Costs incurred 2,570 19,555 22,125 Cash disbursements (1,294 ) (16,335 ) (17,629 ) Asset impairment (762 ) — (762 ) Translation adjustments and other 26 336 362 Balance, November 30, 2017 $ 540 $ 3,556 $ 4,096 Costs incurred 1,011 1,240 2,251 Cash disbursements (1,279 ) (4,802 ) (6,081 ) Translation adjustments and other 35 10 45 Balance, November 30, 2018 $ 307 $ 4 $ 311 Cash disbursements for expenses incurred to date under this restructuring are expected to be made through fiscal year 2019. Accordingly, the balance of the restructuring reserve of $0.3 million is included in other accrued liabilities on the consolidated balance sheet at November 30, 2018 . 2016 Restructuring During the fourth quarter of fiscal year 2016, our management approved, committed to and initiated plans to make strategic changes to our organization as a result of the appointment of our new Chief Executive Officer during the period. In connection with the new organizational structure, we eliminated the positions of Chief Product Officer and Chief Revenue Officer. Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation). As part of this fourth quarter restructuring, for the fiscal years ended November 30, 2018 and 2017 , we did not incur any expenses and do not expect to incur additional material costs with respect to this restructuring. For the fiscal year ended November 30, 2016 , we incurred expenses of $1.5 million . The expenses are recorded as restructuring expenses in the consolidated statements of operations. A summary of activity for this restructuring action is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2015 $ — $ — $ — Costs incurred — 1,482 1,482 Cash disbursements — (67 ) (67 ) Balance, November 30, 2016 $ — $ 1,415 $ 1,415 Cash disbursements — (1,415 ) (1,415 ) Balance, November 30, 2017 $ — $ — $ — 2012 - 2015 Restructurings During fiscal years 2012 through 2015, our management approved, committed to and initiated plans to make strategic changes to our organization to provide greater focus and agility in the delivery of next generation application development, deployment and integration solutions. During each of these fiscal years, we took restructuring actions that involved the elimination of personnel and/or the closure of facilities. Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation), and facilities costs, which include fees to terminate lease agreements and costs for unused space, net of sublease assumptions, and other costs, which include asset impairment charges. As part of these restructuring actions, for the fiscal year ended November 30, 2018 , we did not incur any expenses. For the fiscal years ended November 30, 2017 and 2016, we incurred expenses of $0.1 million and $0.2 million , respectively. These expenses are recorded as restructuring expenses on the consolidated statements of operations. We do not expect to incur additional material costs with respect to these restructuring actions. A summary of these restructuring actions is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2015 $ 412 $ 2,949 $ 3,361 Costs incurred 319 (109 ) 210 Cash disbursements (633 ) (2,839 ) (3,472 ) Translation adjustments and other 9 27 36 Balance, November 30, 2016 $ 107 $ 28 $ 135 Costs incurred 85 — 85 Cash disbursements (162 ) (28 ) (190 ) Balance, November 30, 2017 $ 30 $ — $ 30 Cash disbursements (30 ) — (30 ) Balance, November 30, 2018 $ — $ — $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes are as follows (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 U.S. $ 75,667 $ 77,442 $ 78,477 Foreign 3,313 (11,855 ) (113,757 ) Total $ 78,980 $ 65,587 $ (35,280 ) The provision for income taxes is comprised of the following (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Current: Federal $ 8,979 $ 23,739 $ 12,934 State 1,387 2,461 3,178 Foreign 3,088 1,496 3,027 Total current 13,454 27,696 19,139 Deferred: Federal 2,738 1,548 6,203 State 515 61 (1,963 ) Foreign (1,218 ) (1,135 ) (2,933 ) Total deferred 2,035 474 1,307 Total $ 15,489 $ 28,170 $ 20,446 A reconciliation of the income taxes incurred at the U.S. Federal statutory rate compared to the effective tax rate is as follows (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Tax at U.S. Federal statutory rate $ 17,549 $ 22,955 $ (12,348 ) Foreign rate differences 1,042 4,575 7,689 Effects of foreign operations included in U.S. Federal provision 550 (186 ) (1,244 ) State income taxes, net 1,746 1,702 2,977 Research credits (302 ) (251 ) (838 ) Domestic production activities deduction (1,283 ) (2,670 ) (1,925 ) Tax-exempt interest (66 ) (101 ) (76 ) Nondeductible stock-based compensation 502 808 740 Meals and entertainment 192 276 234 Compensation subject to 162(m) 227 208 — Uncertain tax positions and tax settlements (1,626 ) 429 (1,701 ) Remeasurement of net deferred tax liabilities due to the Act (1,660 ) — — Net excess tax benefit or detriment from stock-based compensation plans (861 ) — — Prior period adjustment — — (2,700 ) Release of valuation allowance on state research and development credits — — (2,748 ) Goodwill Impairment — — 32,200 Other (521 ) 425 186 Total $ 15,489 $ 28,170 $ 20,446 During the preparation of our consolidated financial statements for the three months ended May 31, 2016, we identified an error in our prior year income tax provision whereby income tax expense was overstated for the year ended November 30, 2015 by $2.7 million related to our tax treatment of an intercompany gain. We determined that the error is not material to the prior year financial statements. We also concluded that recording an out-of-period correction would not be material and therefore corrected this error by recording an out-of-period $2.7 million tax benefit in our interim financial statements for the periods ended May 31, 2016, which is included in our fiscal year 2016 results. During the first quarter of fiscal year 2018, the Tax Cuts and Jobs Act (the "Act") was enacted in the United States. The Act reduced the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018, requires companies to pay a one-time transition tax on earnings (if any) of certain foreign subsidiaries that were previously tax deferred, moves to a territorial tax system and creates new taxes on certain foreign sourced earnings. In December 2017, the SEC issued SAB 118, which directs taxpayers to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law. As of November 30, 2018 , the accounting for the change in tax law is complete with respect to provisions of the Act that became effective in fiscal year 2018. During fiscal year 2018, the Company recognized a $1.7 million income tax benefit due to the re-measurement of its net U.S. deferred tax liabilities due to the Act. The Act provides for a one-time deemed repatriation of post-1986 undistributed foreign subsidiary earnings and profits through December 31, 2017. However, the Company will not incur the one-time deemed repatriation tax due to the Company's foreign subsidiaries being in a net accumulated deficit position. Other international provisions of the Act become effective in fiscal year 2019 for the Company. The global intangible low-taxed income ("GILTI") provisions require the Company to include in its U.S. income tax base foreign subsidiary earnings in excess of an allowable return of the foreign subsidiary's tangible assets. The Company expects that it will be subject to incremental U.S. tax resulting from GILTI inclusions beginning in fiscal year 2019. The components of deferred tax assets and liabilities are as follows (in thousands): November 30, 2018 November 30, 2017 Deferred tax assets: Accounts receivable $ 134 $ 226 Other assets — 225 Accrued compensation 1,863 5,456 Accrued liabilities and other 2,106 5,402 Deferred revenue 1,348 1,160 Stock-based compensation 3,166 3,436 Tax credit and loss carryforwards 24,338 31,441 Gross deferred tax assets 32,955 47,346 Valuation allowance (8,790 ) (1,537 ) Total deferred tax assets 24,165 45,809 Deferred tax liabilities: Goodwill (17,966 ) (26,484 ) Unrealized FX gains — (644 ) Depreciation and amortization (7,151 ) (20,367 ) Prepaid expenses (923 ) — Total deferred tax liabilities (26,040 ) (47,495 ) Total $ (1,875 ) $ (1,686 ) The valuation allowance primarily applies to net operating loss carryforwards and unutilized tax credits in jurisdictions or under conditions where realization is not more likely than not. The $7.3 million increase in the valuation allowance during fiscal year 2018 primarily relates to losses in a foreign subsidiary that are more likely than not going to expire prior to utilization. The $1.7 million and $5.0 million decreases in the valuation allowance during fiscal years 2017 and 2016, respectively, primarily relate to a foreign subsidiary that utilized net operating loss carryforwards in fiscal year 2017 that had a valuation allowance recorded against them and to the release of the valuation allowance on state research and development tax credits in fiscal year 2016. At November 30, 2018, we have federal and foreign net operating loss carryforwards of $146.5 million expiring on various dates through 2034 and $0.1 million that may be carried forward indefinitely. In addition, we have state net operating loss carryforwards of $4.8 million expiring on various dates through 2022. At November 30, 2018, we have state tax credit carryforwards of approximately $2.9 million expiring on various dates through 2033 and $2.3 million that may be carried forward indefinitely. In addition, we have federal tax credit carryforwards of approximately $0.9 million expiring on various dates through 2036. It is our intention to indefinitely reinvest the earnings of our non-U.S. subsidiaries. We have not provided for U.S. income taxes on the undistributed earnings of non-U.S. subsidiaries, which totaled $92.2 million as of November 30, 2018, as these earnings have been indefinitely reinvested. It is not practicable to determine the amount of the unrecognized deferred tax liability if the undistributed earnings were to be repatriated. These earnings could be subject to non-U.S. withholding taxes and other federal, state and/or foreign taxes if they were remitted to the U.S. Additional regulatory guidance is intended to be issued that will address certain issues arising from the enactment of the Act that will assist the Company in estimating how much additional taxes might be payable if the undistributed earnings were to be repatriated. As of November 30, 2018, the total amount of unrecognized tax benefits was $5.8 million , of which $3.6 million was recorded in other noncurrent liabilities on the consolidated balance sheet and $2.2 million of deferred tax assets, principally related to U.S and foreign net operating loss carry-forwards, have not been recorded. A reconciliation of the balance of our unrecognized tax benefits is as follows (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Balance, beginning of year $ 7,520 $ 7,046 $ 4,779 Tax positions related to current year — 785 1,106 Tax positions related to a prior period (15 ) (120 ) 1,638 Settlements with tax authorities (39 ) (155 ) (21 ) Lapses due to expiration of the statute of limitations (1,679 ) (36 ) (456 ) Balance, end of year $ 5,787 $ 7,520 $ 7,046 If recognized, all amounts of unrecognized tax benefits would affect the effective tax rate. We recognize interest and penalties related to uncertain tax positions as a component of our provision for income taxes. In fiscal year 2018 a net benefit of $0.1 million was recorded to the provision for income taxes related to estimated interest and penalties of $0.2 million offset by a reduction of $0.3 million related to statute expirations. In fiscal year 2017 estimated interest and penalties of $0.2 million were recorded to the provision for income taxes. In fiscal year 2016 there was a minimal amount of estimated interest and penalties recorded in the provision for income taxes. We have accrued $0.4 million and $0.5 million of estimated interest and penalties at November 30, 2018 and 2017, respectively. We do not expect any significant changes to the amount of unrecognized tax benefits in the next twelve months. Our Federal income tax returns have been examined or are closed by statute for all years prior to fiscal year 2015. State income tax authorities in certain jurisdictions are examining state income tax returns and the Company does not expect the results of these examinations to be material to our consolidated balance sheets, cash flows or statements of income. Our state income tax returns have been examined or are closed by statute for all years prior to fiscal year 2013, and we are no longer subject to audit for those periods. Tax authorities for certain non-U.S. jurisdictions are also examining tax returns and the Company does not expect the results of these examinations to be material to our consolidated balance sheets, cash flows or statements of income. With some exceptions, we are generally no longer subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal year 2013. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Nov. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share We compute basic earnings (loss) per share using the weighted average number of common shares outstanding. We compute diluted earnings (loss) per share using the weighted average number of common shares outstanding plus the effect of outstanding dilutive stock options, restricted stock units and deferred stock units, using the treasury stock method. The following table sets forth the calculation of basic and diluted earnings per share from continuing operations (in thousands, expect per share data): Fiscal Year Ended November 30, November 30, November 30, Net income (loss) $ 63,491 $ 37,417 $ (55,726 ) Weighted average shares outstanding 45,561 48,129 49,481 Dilutive impact from common stock equivalents 574 387 — Diluted weighted average shares outstanding 46,135 48,516 49,481 Basic earnings (loss) per share $ 1.39 $ 0.78 $ (1.13 ) Diluted earnings (loss) per share $ 1.38 $ 0.77 $ (1.13 ) We excluded stock awards representing approximately 602,000 shares, 494,000 shares, and 2,058,000 shares of common stock from the calculation of diluted earnings per share in the fiscal years ended November 30, 2018 , 2017 and 2016 , respectively, because these awards were anti-dilutive. |
Business Segments and Internati
Business Segments and International Operations | 12 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segments and International Operations | Business Segments and International Operations Operating segments are components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. Our chief operating decision maker is our Chief Executive Officer. The changes made to our organization during fiscal years 2016 and 2017, as discussed in Note 13, did not change our determination of the three reportable segments as our organizational structure maintains the focus of the three business segments. We do not manage our assets or capital expenditures by segment or assign other income (expense) and income taxes to segments. We manage and report such items on a consolidated company basis. The following table provides revenue and contribution margin from our reportable segments and reconciles to the consolidated income from continuing operations before income taxes: Fiscal Year Ended (In thousands) November 30, 2018 November 30, 2017 November 30, 2016 Segment revenue: OpenEdge $ 278,258 $ 276,172 $ 276,267 Data Connectivity and Integration 39,030 40,955 48,009 Application Development and Deployment 79,877 80,445 81,065 Total revenue 397,165 397,572 405,341 Segment costs of revenue and operating expenses: OpenEdge 67,820 72,497 72,938 Data Connectivity and Integration 7,634 9,329 12,760 Application Development and Deployment 27,087 26,645 40,180 Total costs of revenue and operating expenses 102,541 108,471 125,878 Segment contribution margin: OpenEdge 210,438 203,675 203,329 Data Connectivity and Integration 31,396 31,626 35,249 Application Development and Deployment 52,790 53,800 40,885 Total contribution margin 294,624 289,101 279,463 Other unallocated expenses (1) 208,626 218,487 309,172 Income (loss) from operations 85,998 70,614 (29,709 ) Other expense, net (7,018 ) (5,027 ) (5,571 ) Income (loss) before income taxes $ 78,980 $ 65,587 $ (35,280 ) (1) The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: certain product development and corporate sales and marketing expenses, customer support, administration, amortization and impairment of acquired intangibles, loss on assets held for sale, impairment of goodwill, stock-based compensation, fees related to shareholder activist, restructuring, and acquisition-related expenses. Our revenues are derived from licensing our products, and from related services, which consist of maintenance, hosting services, and consulting and education. Information relating to revenue from external customers by revenue type is as follows (in thousands): Fiscal Year Ended November 30, November 30, November 30, Software licenses $ 122,137 $ 124,406 $ 134,863 Maintenance 244,822 241,398 238,377 Services 30,206 31,768 32,101 Total $ 397,165 $ 397,572 $ 405,341 In the following table, revenue attributed to the United States includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from Canada, EMEA, Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands): Fiscal Year Ended November 30, November 30, November 30, United States $ 204,151 $ 206,450 $ 212,312 Canada 15,771 17,492 16,891 EMEA 137,972 130,359 130,818 Latin America 17,637 21,158 21,156 Asia Pacific 21,634 22,113 24,164 Total $ 397,165 $ 397,572 $ 405,341 No country outside of the U.S. accounted for more than 10% of our consolidated revenue in any year presented. Long-lived assets totaled $25.8 million , $39.5 million and $45.4 million in the U.S. and $4.9 million , $2.8 million and $4.7 million outside of the U.S. at the end of fiscal years 2018 , 2017 and 2016 , respectively. No individual country outside of the U.S. accounted for more than 10% of our consolidated long-lived assets. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Nov. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | Selected Quarterly Financial Data (unaudited) (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal year 2018: Revenue $ 94,047 $ 96,102 $ 95,683 $ 111,333 Gross profit 77,144 79,459 78,987 94,602 Income from operations 17,768 21,788 22,183 24,259 Net income 12,912 15,403 16,746 18,430 Basic earnings per share 0.28 0.34 0.37 0.41 Diluted earnings per share 0.27 0.33 0.37 0.41 Fiscal year 2017: Revenue $ 90,970 $ 93,213 $ 97,310 $ 116,079 Gross profit 75,212 75,846 79,235 98,120 Income from operations 1,222 20,284 20,299 28,809 Net (loss) income (525 ) 10,341 11,172 16,429 Basic (loss) earnings per share (0.01 ) 0.21 0.23 0.35 Diluted (loss) earnings per share (0.01 ) 0.21 0.23 0.34 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Nov. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During fiscal year 2017, we acquired 100% of the outstanding securities of MightyMeeting, Inc. ("MightyMeeting"), a mobile collaboration and social publishing platform, for $1.5 million . Dmitri Tcherevik, our Chief Technology Officer, was the founder and 50% owner of MightyMeeting. The transaction did not have a material impact on our financial condition or results of operations. The transaction has been accounted for as an asset acquisition. In connection with the acquisition, we recorded a deferred tax liability resulting from the difference in book-to-tax basis of the acquired asset. As such, we recorded an intangible asset of $2.4 million , which includes a deferred tax liability of $0.9 million that is being amortized over five years beginning in the fourth quarter of fiscal year 2017. We did not enter into any material related party transactions during fiscal years 2018 and 2016. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Principles | Accounting Principles We prepare our consolidated financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America ("GAAP"). |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include our accounts and those of our subsidiaries (all of which are wholly-owned). We eliminate all intercompany balances and transactions. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an on-going basis, management evaluates its estimates and records changes in estimates in the period in which they become known. These estimates are based on historical data and experience, as well as various other assumptions that management believes to be reasonable under the circumstances. The most significant estimates relate to the timing and amounts of revenue recognition, the realization of tax assets and estimates of tax liabilities, fair values of investments in marketable securities, assets held for sale, intangible assets and goodwill valuations, the recognition and disclosure of contingent liabilities, the collectability of accounts receivable, and assumptions used to determine the fair value of stock-based compensation. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of most of our foreign subsidiaries is the local currency in which the subsidiary operates. For foreign operations where the local currency is considered to be the functional currency, we translate assets and liabilities into U.S. dollars at the exchange rate on the balance sheet date. We translate income and expense items at average rates of exchange prevailing during each period. We accumulate translation adjustments in accumulated other comprehensive loss, a component of shareholders’ equity. For foreign operations where the U.S. dollar is considered to be the functional currency, we remeasure monetary assets and liabilities into U.S. dollars at the exchange rate on the balance sheet date and non-monetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. We translate income and expense items at average rates of exchange prevailing during each period. We recognize remeasurement adjustments currently as a component of foreign currency loss, net in the statements of operations. Transaction gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in foreign currency loss, net in the statements of operations as incurred. |
Cash Equivalents and Investments | Cash Equivalents and Investments Cash equivalents include short-term, highly liquid investments purchased with remaining maturities of three months or less. As of November 30, 2018 , all of our cash equivalents were invested in money market funds. We classify investments, state and municipal bond obligations, U.S. treasury and government agency bonds, and corporate bonds and notes, as investments available-for-sale, which are stated at fair value. We include aggregate unrealized holding gains and losses, net of taxes, on available-for-sale securities as a component of accumulated other comprehensive loss in shareholders’ equity. We include realized gains and losses in interest income and other, net on the consolidated statements of operations. We monitor our investment portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other than temporary, an impairment charge is recorded and a new cost basis for the investment is established. In determining whether an other-than-temporary impairment exists, we consider the nature of the investment, the length of time and the extent to which the fair value has been less than cost, and our intent and ability to continue holding the security for a period sufficient for an expected recovery in fair value. |
Allowance for Doubtful Accounts and Sales Credit Memos | Allowances for Doubtful Accounts and Sales Credit Memos We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. We establish this allowance using estimates that we make based on factors such as the composition of the accounts receivable aging, historical bad debts, changes in payment patterns, changes to customer creditworthiness and current economic trends. We also record an allowance for estimates of potential sales credit memos. This allowance is determined based on an analysis of historical credit memos issued and current economic trends, and is recorded as a reduction of revenue. |
Concentrations of Credit Risk | Concentrations of Credit Risk Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments, derivative instruments and trade receivables. We have cash investment policies which, among other things, limit investments to investment-grade securities. We hold our cash and cash equivalents, investments and derivative instrument contracts with high quality financial institutions and we monitor the credit ratings of those institutions. We perform ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the diversity, both by geography and by industry, of the customer base. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount of our cash and cash equivalents, accounts receivable, accounts payable and long-term debt approximates fair value due to the short-term nature or market interest rates of these items. We base the fair value of short-term investments on quoted market prices or other relevant information generated by market transactions involving identical or comparable assets. We measure and record derivative financial instruments at fair value. |
Derivative Instruments | Derivative Instruments We record all derivatives on the consolidated balance sheets at fair value. We use derivative instruments to manage exposures to fluctuations in the value of foreign currencies, which exist as part of our ongoing business operations. Certain assets and forecasted transactions are exposed to foreign currency risk. Our objective for holding derivatives is to eliminate or reduce the impact of these exposures. We periodically monitor our foreign currency exposures to enhance the overall economic effectiveness of our foreign currency hedge positions. Principal currencies hedged include the euro, British pound, Brazilian real, Indian rupee, and Australian dollar. We do not enter into derivative instruments for speculative purposes, nor do we hold or issue any derivative instruments for trading purposes. We enter into certain derivative instruments that do not qualify for hedge accounting and are not designated as hedges. Although these derivatives do not qualify for hedge accounting, we believe that such instruments are closely correlated with the underlying exposure, thus managing the associated risk. The gains or losses from changes in the fair value of such derivative instruments that are not accounted for as hedges are recognized in earnings in foreign currency loss, net in the consolidated statements of operations. |
Property and Equipment | Property and Equipment We record property and equipment at cost. We record property and equipment purchased in business combinations at fair value, which is then treated as the cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the useful lives of the assets. Useful lives by major asset class are as follows: computer equipment and software, 3 to 7 years; buildings and improvements, 5 to 39 years; and furniture and fixtures, 5 to 7 years. Repairs and maintenance costs are expensed as incurred. |
Product Development and Internal Use Software | Product Development and Internal Use Software Expenditures for product development, other than internal use software costs, are expensed as incurred. Product development expenses primarily consist of personnel and related expenses for our product development staff, the cost of various third-party contractor fees, and allocated overhead expenses. Software development costs associated with internal use software are incurred in three stages of development: the preliminary project stage, the application development stage, and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Certain internal and external qualifying costs incurred during the application development stage are capitalized as property and equipment. Internal use software is amortized on a straight-line basis over its estimated useful life of three years, beginning when the software is ready for its intended use. |
Goodwill, Intangible Assets and Long-Lived Assets | Goodwill, Intangible Assets and Long-Lived Assets Goodwill is the amount by which the cost of acquired net assets in a business combination exceeded the fair value of net identifiable assets on the date of purchase. We evaluate goodwill and other intangible assets with indefinite useful lives, if any, for impairment annually or on an interim basis when events and circumstances arise that indicate impairment may have occurred. In performing our annual assessment, we first perform a qualitative test and if necessary, perform a quantitative test. To conduct the quantitative impairment test of goodwill, we compare the fair value of a reporting unit to its carrying value. If the reporting unit’s carrying value exceeds its fair value, we record an impairment loss to the extent that the carrying value of goodwill exceeds its implied fair value. We estimate the fair values of our reporting units using discounted cash flow models or other valuation models, such as comparative transactions and market multiples. We did no t recognize any goodwill impairment charges during fiscal years 2018 or 2017. During fiscal year 2016, we recorded a $92.0 million goodwill impairment charge related to the Application Development and Deployment reporting unit (Note 6). Intangible assets are comprised of purchased technology, customer-related assets, and trademarks and trade names acquired through business combinations (Note 7). All of our intangible assets are amortized using the straight-line method over their estimated useful life. We periodically review long-lived assets (primarily property and equipment) and intangible assets with finite lives for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. We base each impairment test on a comparison of the undiscounted cash flows to the carrying value of the asset or asset group. If impairment is indicated, we write down the asset to its estimated fair value based on a discounted cash flow analysis. During fiscal year 2016, we recorded a $5.1 million asset impairment charge, which was applicable to the intangible assets obtained in connection with our acquisition of Modulus during fiscal year 2014 (Note 6). We classify long-lived assets to be sold as held for sale in the period in which: (i) we have approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Assets held for sale are initially measured at the lower of the carrying value or the fair value less cost to sell. Losses resulting from this measurement are recognized in the period in which the held for sale criteria are met while gains are not recognized until the date of sale. Once designated as held for sale, we stop recording depreciation expense on the asset. We assess the fair value less cost to sell of long-lived assets held for sale at each reporting period until it no longer meets this classification. In the fourth quarter of fiscal year 2018, we reclassified certain corporate land and building assets previously reported as property and equipment to assets held for sale on our consolidated balance sheet as we began an active program to sell and expect to sell these assets within one year. As the fair value less cost to sell was less than the carrying value of these assets, we recognized an impairment charge of $5.1 million . The fair value of the assets held for sale was measured using third-party valuation models, which included a discounted cash flow analysis (Note 4). |
Comprehensive (Loss) Income | Comprehensive (Loss) Income The components of comprehensive loss include, in addition to net income (loss), unrealized gains and losses on investments and foreign currency translation adjustments. |
Revenue Recognition | Revenue Recognition We derive our revenue primarily from software licenses and maintenance and services. Our license arrangements generally contain multiple elements, including software maintenance services, consulting services, and customer education services. We do not recognize revenue until the following four basic criteria are met: (i) persuasive evidence of an arrangement exists, (ii) our product has been shipped or, if delivered electronically, the customer has the right to access the software, (iii) the fee is fixed or determinable, and (iv) collection of the fee is probable. Evidence of an arrangement generally consists of a contract or purchase order signed by the customer. In regard to delivery, we generally ship our software electronically and do not license our software with conditions of acceptance. If an arrangement does contain conditions of acceptance, we defer recognition of the revenue until the acceptance criteria are met or the period of acceptance has passed. Services are considered delivered as the work is performed or, in the case of maintenance, over the contractual service period. We assess whether a fee is fixed or determinable at the outset of the arrangement and consider the payment terms of the transaction, including transactions that extend beyond our customary payment terms. We do not license our software with a right of return. In assessing whether the collection of the fee is probable, we consider customer credit-worthiness, a customer’s historical payment experience, economic conditions in the customer’s industry and geographic location and general economic conditions. If we do not consider collection of a fee to be probable, we defer the revenue until the fees are collected, provided all other conditions for revenue recognition have been met. In determining when to recognize revenue from a customer arrangement, we are often required to exercise judgment regarding the application of our accounting policies to a particular arrangement. The primary judgments used in evaluating revenue recognized in each period involve: determining whether collection is probable, assessing whether the fee is fixed or determinable, and determining the fair value of the maintenance and services elements included in multiple-element software arrangements. Such judgments can materially impact the amount of revenue that we record in a given period. While we follow specific and detailed rules and guidelines related to revenue recognition, we make and use significant management judgments and estimates in connection with the revenue recognized in any reporting period, particularly in the areas described above. If management made different estimates or judgments, material differences in the timing of the recognition of revenue could occur. In regard to software license revenues, perpetual and term license fees are recognized as revenue when the software is delivered, no significant obligations or contingencies related to the software exist, other than maintenance, and all other revenue recognition criteria are met. We generally recognize revenue for products distributed through application partners and distributors on a sell-in basis. Revenue from maintenance is recognized ratably over the service period. Maintenance revenue is deferred until the associated license is delivered to the customer and all other criteria for revenue recognition have been met. Revenue from other services, which are primarily consulting and customer education services, is generally recognized as the services are delivered to the customer, provided all other criteria for revenue recognition have been met. We also offer products via a software-as-a-service ("SaaS") model, which is a subscription based model. Subscription revenue derived from these agreements is generally recognized on a straight-line basis over the subscription term, provided persuasive evidence of an arrangement exists, access to our software has been granted to the customer, the fee for the subscription is fixed or determinable, and collection of the subscription fee is probable. We generally sell our software licenses with maintenance services and, in some cases, also with consulting services. For these multiple element arrangements, we allocate revenue to the delivered elements of the arrangement using the residual method, whereby revenue is allocated to the undelivered elements based on vendor specific objective evidence ("VSOE") of fair value of the undelivered elements with the remaining arrangement fee allocated to the delivered elements and recognized as revenue assuming all other revenue recognition criteria are met. For the undelivered elements, we determine VSOE of fair value to be the price charged when the undelivered element is sold separately. We determine VSOE for maintenance sold in connection with a software license based on the amount that will be separately charged for the maintenance renewal period. Substantially all license arrangements indicate the renewal rate for which customers may, at their option, renew their maintenance agreement. We determine VSOE for consulting services by reference to the amount charged for similar engagements when a software license sale is not involved. We review services sold separately on a periodic basis and update, when appropriate, our VSOE of fair value for such maintenance and services to ensure that it reflects our recent pricing experience. If VSOE of fair value for the undelivered elements cannot be established, we defer all revenue from the arrangement until the earlier of the point at which such sufficient VSOE does exist or all elements of the arrangement have been delivered, or if the only undelivered element is maintenance, then we recognize the entire fee ratably over the maintenance period. If payment of the software license fees is dependent upon the performance of consulting services or the consulting services are essential to the functionality of the licensed software, then we recognize both the software license and consulting fees using the completed contract method. Sales taxes collected from customers and remitted to government authorities are excluded from revenue. Deferred revenue generally results from contractual billings for which revenue has not been recognized and consists of the unearned portion of license, maintenance, and services fees. Deferred revenue expected to be recognized as revenue more than one year subsequent to the balance sheet date is included in long-term liabilities in the consolidated balance sheets. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred |
Warranty Costs | Warranty Costs We make periodic provisions for expected warranty costs. Historically, warranty costs have been insignificant. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense reflects the fair value of stock-based awards, less the present value of expected dividends, measured at the grant date and recognized over the relevant service period. We estimate the fair value of each stock-based award on the measurement date using either the current market price of the stock, the Black-Scholes option valuation model, or the Monte Carlo Simulation valuation model. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate and dividend yield. We recognize stock-based compensation expense related to options and restricted stock units on a straight-line basis over the service period of the award, which is generally 4 or 5 years for options and 3 years for restricted stock units. We recognize stock-based compensation expense related to performance stock units and our employee stock purchase plan using an accelerated attribution method. |
Acquisition-Related Costs | Acquisition-Related Costs Acquisition-related costs are expensed as incurred and include those costs incurred as a result of a business combination. These costs consist of professional services fees, including third-party legal and valuation-related fees, as well as retention fees and earn-out payments treated as compensation expense. |
Restructuring Charges | Restructuring Charges Our restructuring charges are comprised primarily of costs related to property abandonment, including future lease commitments, net of any sublease income, and associated leasehold improvements; and employee termination costs related to headcount reductions. We recognize and measure restructuring liabilities initially at fair value when the liability is incurred. |
Income Taxes | Income Taxes We provide for deferred income taxes resulting from temporary differences between financial and taxable income. We record valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. We recognize and measure uncertain tax positions taken or expected to be taken in a tax return utilizing a two-step approach. We first determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is that we measure the tax benefit as the largest amount that is more likely than not to be realized upon ultimate settlement. We recognize interest and penalties related to uncertain tax positions in our provision for income taxes on our consolidated statements of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 is intended to simplify various aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance in ASU 2016-09 is required for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The standard requires, on a prospective basis, the recognition of all excess tax benefits and tax deficiencies as income tax benefit or expense in the statement of operations and the tax effect of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. The excess tax benefits and tax deficiencies should not be considered in an entity's calculation of its annual estimated effective tax rate and, as excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method to calculate diluted earnings per share should exclude such excess tax benefits. Further, on either a prospective or retrospective basis, excess tax benefits should be classified as operating activities in the statement of cash flows. The standard also provides entities the option to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur, which is to be applied in accordance with a modified retrospective transition. Additionally, the standard updates the threshold to qualify for equity classification for minimum statutory tax withholding requirements by permitting an entity to withhold up to the maximum statutory rates in the applicable jurisdictions, applied on a modified retrospective basis. Finally, the standard requires that cash paid by an employer to a taxing authority when directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows, applied retrospectively. We adopted this standard at the beginning of the first quarter of fiscal year 2018 and elected to classify excess tax benefits as operating activities on a prospective basis in the consolidated statement of cash flows. As such, the prior period consolidated statement of cash flows was not adjusted. Further, during the fiscal year ended November 30, 2018, we recognized excess tax benefits of $0.9 million related to the exercise of stock options and vesting of restricted stock awards. We also elected to account for forfeitures as they occur and recorded a cumulative-effect adjustment of $0.6 million to retained earnings during the period of adoption. The adoption of ASU 2016-09 did not have a material impact on our consolidated financial position, results of operations, and cash flows. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"). ASU 2018-15 amends current guidance to align the accounting for costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs associated with developing or obtaining internal-use software. Capitalized implementation costs must be expensed over the term of the hosting arrangement and presented in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement. The guidance in ASU 2018-15 is effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently accounting for costs incurred in a cloud computing arrangement in accordance with the guidance provided in ASU 2018-15. In August 2017, the FASB issued Accounting Standards Update No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"). ASU 2017-12 intends to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance in ASU 2017-12 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 amends Topic 350 to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. This update requires the performance of an annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance in ASU 2017-04 is required for annual reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently considering whether to adopt this update prior to the required adoption date. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16"), which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Under current GAAP, the recognition of current and deferred income taxes for an intra-entity transfer are prohibited until the asset has been sold to an outside party. The amendments in ASU 2016-16 are effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. We estimate that the impact upon adoption on our consolidated balance sheet will be a reclassification of approximately $3.3 million from non-current prepaid taxes, which is included in other assets on our consolidated balance sheet, to retained earnings as of December 1, 2018. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which requires lessees to record most leases on their balance sheets, recognizing a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance in ASU 2016-02 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We currently expect that most of our operating lease commitments will be subject to the update and recognized as operating lease liabilities and right-of-use assets upon adoption. However, we are currently evaluating the effect that implementation of this update will have upon adoption on our consolidated financial position and results of operations. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance provided in ASC Topic 606 ("ASC 606") requires entities to use a five-step model to recognize revenue by allocating the consideration from contracts to performance obligations on a relative standalone selling price basis. Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. The standard also requires new disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASC 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers , which requires the deferral of incremental costs of obtaining a contract with a customer. This new guidance was initially effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016 and early adoption was not permitted. However, in July 2015, the FASB voted to defer the effective date of this ASU by one year for reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date. As a result, the effective date for the Company is December 1, 2018. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. The Company adopted this ASU in accordance with the full retrospective approach, effective December 1, 2018. Fiscal year 2019 quarterly results, and comparative prior periods, will be prepared in accordance with ASC 606. The first Annual Report on Form 10-K issued in accordance with ASC 606 will be for the period ended November 30, 2019. Based on preliminary results, we expect that the revenue recognition related to accounting for the following transactions will be most impacted: • Revenue from term licenses with extended payment terms over the term of the agreement within our Data Connectivity and Integration segment - Under the applicable revenue recognition guidance for fiscal years 2018 and prior, these transactions were recognized when the amounts were billed to the customer. In accordance with ASC 606, revenue from term license performance obligations will be recognized upon delivery and revenue from maintenance performance obligations is expected to be recognized over the contract term. After the adoption of ASC 606, to the extent the Company enters into future term licenses with extended payment terms or has open contracts as of the adoption date, revenue from term licenses with extended payment terms will be recognized prior to the customer being billed and the Company will recognize an unbilled receivable on the balance sheet. Accordingly, the recognition of license revenue will be accelerated under ASC 606 as the Company currently does not recognize revenue until the amounts have been billed to the customer. • Revenue from transactions with multiple elements within our Application Development and Deployment segment (i.e., sales of perpetual licenses with maintenance and/or support) - Under the applicable revenue recognition guidance for fiscal years 2018 and prior, these transactions were recognized ratably over the associated maintenance period as the Company did not have vendor specific objective evidence ("VSOE") for maintenance or support. Under ASC 606, the requirement to have VSOE for undelivered elements that existed under prior guidance is eliminated. Accordingly, the Company will recognize a portion of the sales price as revenue upon delivery of the license instead of recognizing the entire sales price ratably over the maintenance period. We have substantially completed our assessment of the retrospective application of ASC 606 to our historical financial statements. On a preliminary basis we believe that the retrospective impact of ASC 606 will be a decrease of revenue of approximately $18 million in fiscal year 2018 and $8 million in fiscal year 2017. In addition, on a preliminary basis, we expect that fiscal year 2018 net income and diluted earnings per share will decrease by approximately $14 million and $0.30 per share, respectively, and fiscal year 2017 net income and diluted earnings per share will decrease by approximately $8 million and $0.17 per share, respectively. We will finalize our retrospective presentation of our historical financial statements under ASC 606 in connection with our 10-Q filings during fiscal year 2019 and our 10-K for the fiscal year ending November 30, 2019. |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Allowances Against Accounts Receivable | A summary of activity in the allowance for doubtful accounts is as follows (in thousands): November 30, 2018 November 30, 2017 November 30, 2016 Beginning balance $ 498 $ 741 $ 1,421 Charge (credit) to costs and expenses 216 204 (256 ) Write-offs and other (232 ) (437 ) (370 ) Translation adjustments 4 (10 ) (54 ) Ending balance $ 486 $ 498 $ 741 |
Schedule of Activity in Allowance for Sales Credit Memos | A summary of activity in the allowance for sales credit memos is as follows (in thousands): November 30, 2018 November 30, 2017 November 30, 2016 Beginning balance $ 178 $ 402 $ 772 Charge (credit) to revenue 46 (158 ) (223 ) Write-offs and other — (69 ) (144 ) Translation adjustments — 3 (3 ) Ending balance $ 224 $ 178 $ 402 |
Accumulated Other Comprehensive (Loss) Income | Accumulated other comprehensive loss by components, net of tax (in thousands): Foreign Currency Translation Adjustment Unrealized (Losses) Gains on Investments Total Balance, December 1, 2016 $ (28,425 ) $ (136 ) $ (28,561 ) Other comprehensive income (loss) before reclassifications 9,655 (93 ) 9,562 Net other comprehensive income (loss) 9,655 (93 ) 9,562 Balance, December 1, 2017 $ (18,770 ) $ (229 ) $ (18,999 ) Other comprehensive (loss) income before reclassifications (9,240 ) 26 (9,214 ) Net other comprehensive (loss) income (9,240 ) 26 (9,214 ) Balance, November 30, 2018 $ (28,010 ) $ (203 ) $ (28,213 ) |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Investments and Cash [Abstract] | |
Summary of Cash, Cash Equivalents and Trading and Available-for-sale Investments | A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2018 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 101,316 $ — $ — $ 101,316 Money market funds 3,810 — — 3,810 State and municipal bond obligations 19,542 — (119 ) 19,423 U.S. treasury bonds 6,726 — (21 ) 6,705 Corporate bonds 8,329 — (70 ) 8,259 Total $ 139,723 $ — $ (210 ) $ 139,513 A summary of our cash, cash equivalents and available-for-sale investments at November 30, 2017 is as follows (in thousands): Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash $ 130,547 $ — $ — $ 130,547 Money market funds 2,917 — — 2,917 State and municipal bond obligations 40,458 — (231 ) 40,227 U.S. treasury bonds 3,517 — (26 ) 3,491 Corporate bonds 6,463 — (36 ) 6,427 Total $ 183,902 $ — $ (293 ) $ 183,609 |
Summary of Cash, Cash Equivalents and Trading and Available-for-sale Investments by Balance Sheet Classification | Such amounts are classified on our consolidated balance sheets as follows (in thousands): November 30, 2018 November 30, 2017 Cash and Equivalents Short-Term Investments Cash and Equivalents Short-Term Investments Cash $ 101,316 $ — $ 130,547 $ — Money market funds 3,810 — 2,917 — State and municipal bond obligations — 19,423 — 40,227 U.S. treasury bonds — 6,705 — 3,491 Corporate bonds — 8,259 — 6,427 Total $ 105,126 $ 34,387 $ 133,464 $ 50,145 |
Fair Value of Debt Securities by Contractual Maturity | The fair value of debt securities by contractual maturity is as follows (in thousands): November 30, November 30, Due in one year or less $ 25,051 $ 22,333 Due after one year (1) 9,336 27,812 Total $ 34,387 $ 50,145 (1) Includes state and municipal bond obligations and corporate bonds, which are securities representing investments available for current operations and are classified as current on the consolidated balance sheets. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Foreign Currency Forward Contracts | The table below details outstanding foreign currency forward contracts where the notional amount is determined using contract exchange rates (in thousands): November 30, 2018 November 30, 2017 Notional Value Fair Value Notional Value Fair Value Forward contracts to sell U.S. dollars $ 105,830 $ (170 ) $ 119,192 $ (27 ) Forward contracts to purchase U.S. dollars 240 — 462 — Total $ 106,070 $ (170 ) $ 119,654 $ (27 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements within the Fair Value Hierarchy of the Financial Assets | The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2018 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 3,810 $ 3,810 $ — $ — State and municipal bond obligations 19,423 — 19,423 — U.S. treasury bonds 6,705 — 6,705 — Corporate bonds 8,259 — 8,259 — Liabilities Foreign exchange derivatives $ (170 ) $ — $ (170 ) $ — The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2017 (in thousands): Fair Value Measurements Using Total Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 2,917 $ 2,917 $ — $ — State and municipal bond obligations 40,227 — 40,227 — U.S. treasury bonds 3,491 — 3,491 — Corporate bonds 6,427 — 6,427 — Liabilities Foreign exchange derivatives $ (27 ) $ — $ (27 ) $ — |
Fair Value Measurements, Nonrecurring | The following table presents nonrecurring fair value measurements as of November 30, 2018 (in thousands): Total Fair Value Total Losses Assets held for sale $ 5,776 $ 5,147 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following (in thousands): November 30, 2018 November 30, 2017 Computer equipment and software $ 47,266 $ 50,588 Land, buildings and leasehold improvements 34,676 50,229 Furniture and fixtures 6,104 7,211 Capitalized software development costs 276 2,955 Property and equipment, gross 88,322 110,983 Less accumulated depreciation and amortization (57,608 ) (68,722 ) Property and equipment, net $ 30,714 $ 42,261 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets are comprised of the following significant classes (in thousands): November 30, 2018 November 30, 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Purchased technology $ 154,301 $ (110,959 ) $ 43,342 $ 154,301 $ (88,224 ) $ 66,077 Customer-related 67,802 (56,589 ) 11,213 67,802 (46,230 ) 21,572 Trademarks and trade names 17,740 (13,376 ) 4,364 17,740 (10,495 ) 7,245 Total $ 239,843 $ (180,924 ) $ 58,919 $ 239,843 $ (144,949 ) $ 94,894 |
Schedule of Future Amortization Expense From Intangible Assets Held | Future amortization expense for intangible assets as of November 30, 2018 is as follows (in thousands): 2019 $ 34,932 2020 10,152 2021 10,033 2022 3,802 Total $ 58,919 |
Summary of Changes In The Carrying Amount of Goodwill | Changes in the carrying amount of goodwill by reportable segment for fiscal year 2018 are as follows (in thousands): November 30, 2017 Translation adjustments November 30, 2018 OpenEdge $ 249,036 $ (49 ) $ 248,987 Data Connectivity and Integration 19,040 — 19,040 Application Development and Deployment 46,965 — 46,965 Total goodwill $ 315,041 $ (49 ) $ 314,992 Changes in the carrying amount of goodwill for fiscal years 2018 and 2017 are as follows (in thousands): November 30, 2018 November 30, 2017 Balance, beginning of year $ 315,041 $ 278,067 Additions — 36,934 Translation adjustments (49 ) 40 Balance, end of year $ 314,992 $ 315,041 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Kinvey, Inc. | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The allocation of the purchase price is as follows (in thousands): Total Life Net working capital $ (963 ) Property, plant and equipment 26 Purchased technology 22,100 5 Years Trade name 1,800 5 Years Customer relationships 100 5 Years Net deferred tax assets 1,465 Goodwill 24,351 Net assets acquired $ 48,879 |
DataRPM Corporation | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The allocation of the purchase price is as follows (in thousands): Total Life Net working capital $ (174 ) Property, plant and equipment 68 Purchased technology 19,900 5 Years Trade name 800 5 Years Customer relationships 100 5 Years Deferred taxes (5,006 ) Goodwill 12,583 Net assets acquired $ 28,271 |
Term Loan and Line of Credit (T
Term Loan and Line of Credit (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | As of November 30, 2018 , aggregate principal payments of long-term debt for the next five years are (in thousands): 2019 $ 6,188 2020 9,281 2021 12,375 2022 89,719 Total $ 117,563 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments | Future minimum rental payments under these leases are as follows at November 30, 2018 (in thousands): 2019 $ 6,256 2020 5,163 2021 3,373 2022 2,709 2023 2,746 Thereafter 4,337 Total $ 24,584 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity under all the plans is as follows: Shares Weighted Average Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (1) (in thousands) Exercise Price (in years) (in thousands) Options outstanding, December 1, 2017 1,002 $ 28.29 Granted 482 49.56 Exercised (189 ) 23.40 Canceled (188 ) 34.38 Options outstanding, November 30, 2018 1,107 $ 37.82 5.61 $ 3,610 Exercisable, November 30, 2018 269 $ 33.80 5.33 $ 1,206 Vested or expected to vest, November 30, 2018 1,107 $ 37.82 5.61 $ 3,610 (1) The aggregate intrinsic value was calculated based on the difference between the closing price of our stock on November 30, 2018 of $35.16 and the exercise prices for all options outstanding. |
Summary of Status of Restricted Stock Units | A summary of restricted stock units activity is as follows (in thousands, except per share data): Number of Shares Weighted Average Fair Value Restricted stock units outstanding, December 1, 2017 1,136 $ 28.15 Granted 362 49.06 Issued (393 ) 30.00 Canceled (193 ) 28.61 Restricted stock units outstanding, November 30, 2018 912 $ 35.46 |
Fair Value of Options and Employee Stock Purchase Plan Shares Granted, Weighted Average Assumptions | We estimated the fair value of stock options and ESPP awards granted in fiscal years 2018 , 2017 and 2016 on the measurement dates using the Black-Scholes option valuation model, and LTIP awards using the Monte Carlo Simulation valuation model, with the following weighted average assumptions: Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Stock options: Expected volatility 22.8 % 25.0 % — % Risk-free interest rate 2.3 % 1.9 % — % Expected life (in years) 4.8 4.8 0 Expected dividend yield 1.1 % 1.7 % — % Employee stock purchase plan: Expected volatility 23.8 % 22.9 % 25.3 % Risk-free interest rate 2.3 % 1.2 % 0.6 % Expected life (in years) 1.7 1.5 1.6 Expected dividend yield 1.5 % 1.6 % — % Long-term incentive plan: Expected volatility 27.4 % 27.5 % 27.1 % Risk-free interest rate 2.1 % 1.4 % 1.0 % Expected life (in years) 2.9 2.7 2.7 Expected dividend yield 1.7 % 1.8 % — % |
Stock Options and Stock Awards Activity | The following additional activity occurred under our plans (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Total intrinsic value of stock options on date exercised $ 3,692 $ 1,622 $ 2,017 Total fair value of deferred stock units on date vested 1,690 57 — Total fair value of restricted stock units on date vested 14,741 20,032 17,213 |
Classification of Stock-Based Compensation | The following table provides the classification of stock-based compensation as reflected in our consolidated statements of operations (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Cost of maintenance and services $ 616 $ 1,016 $ 899 Sales and marketing 2,959 2,214 4,093 Product development 8,242 4,576 9,965 General and administrative 8,752 6,347 7,584 Total stock-based compensation $ 20,569 $ 14,153 $ 22,541 Income tax benefit included in the provision for income taxes from continuing operations $ 4,345 $ 4,057 $ 5,208 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Summary of Restructuring Activity | The following table provides a summary of activity for all of the restructuring actions, which are detailed further below (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2015 $ 412 $ 2,949 $ 3,361 Costs incurred 319 1,373 1,692 Cash disbursements (633 ) (2,906 ) (3,539 ) Translation adjustments and other 9 27 36 Balance, November 30, 2016 $ 107 $ 1,443 $ 1,550 Costs incurred 2,655 19,555 22,210 Cash disbursements (1,456 ) (17,778 ) (19,234 ) Asset impairment (762 ) — (762 ) Translation adjustments and other 26 336 362 Balance, November 30, 2017 $ 570 $ 3,556 $ 4,126 Costs incurred 1,011 1,240 2,251 Cash disbursements (1,309 ) (4,802 ) (6,111 ) Translation adjustments and other 35 10 45 Balance, November 30, 2018 $ 307 $ 4 $ 311 |
2017 Restructuring Activities | |
Restructuring Cost and Reserve [Line Items] | |
Summary of Restructuring Activity | A summary of activity for this restructuring action is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2016 $ — $ — $ — Costs incurred 2,570 19,555 22,125 Cash disbursements (1,294 ) (16,335 ) (17,629 ) Asset impairment (762 ) — (762 ) Translation adjustments and other 26 336 362 Balance, November 30, 2017 $ 540 $ 3,556 $ 4,096 Costs incurred 1,011 1,240 2,251 Cash disbursements (1,279 ) (4,802 ) (6,081 ) Translation adjustments and other 35 10 45 Balance, November 30, 2018 $ 307 $ 4 $ 311 |
2016 Restructuring Activities | |
Restructuring Cost and Reserve [Line Items] | |
Summary of Restructuring Activity | A summary of activity for this restructuring action is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2015 $ — $ — $ — Costs incurred — 1,482 1,482 Cash disbursements — (67 ) (67 ) Balance, November 30, 2016 $ — $ 1,415 $ 1,415 Cash disbursements — (1,415 ) (1,415 ) Balance, November 30, 2017 $ — $ — $ — |
2012 - 2015 Restructuring Activities | |
Restructuring Cost and Reserve [Line Items] | |
Summary of Restructuring Activity | A summary of these restructuring actions is as follows (in thousands): Excess Facilities and Other Costs Employee Severance and Related Benefits Total Balance, December 1, 2015 $ 412 $ 2,949 $ 3,361 Costs incurred 319 (109 ) 210 Cash disbursements (633 ) (2,839 ) (3,472 ) Translation adjustments and other 9 27 36 Balance, November 30, 2016 $ 107 $ 28 $ 135 Costs incurred 85 — 85 Cash disbursements (162 ) (28 ) (190 ) Balance, November 30, 2017 $ 30 $ — $ 30 Cash disbursements (30 ) — (30 ) Balance, November 30, 2018 $ — $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Components Of Pretax Income | The components of income before income taxes are as follows (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 U.S. $ 75,667 $ 77,442 $ 78,477 Foreign 3,313 (11,855 ) (113,757 ) Total $ 78,980 $ 65,587 $ (35,280 ) |
Provisions For Income Taxes | The provision for income taxes is comprised of the following (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Current: Federal $ 8,979 $ 23,739 $ 12,934 State 1,387 2,461 3,178 Foreign 3,088 1,496 3,027 Total current 13,454 27,696 19,139 Deferred: Federal 2,738 1,548 6,203 State 515 61 (1,963 ) Foreign (1,218 ) (1,135 ) (2,933 ) Total deferred 2,035 474 1,307 Total $ 15,489 $ 28,170 $ 20,446 |
Reconciliation Of U.S. Federal Statutory Rate To Effective Tax Rate | A reconciliation of the income taxes incurred at the U.S. Federal statutory rate compared to the effective tax rate is as follows (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Tax at U.S. Federal statutory rate $ 17,549 $ 22,955 $ (12,348 ) Foreign rate differences 1,042 4,575 7,689 Effects of foreign operations included in U.S. Federal provision 550 (186 ) (1,244 ) State income taxes, net 1,746 1,702 2,977 Research credits (302 ) (251 ) (838 ) Domestic production activities deduction (1,283 ) (2,670 ) (1,925 ) Tax-exempt interest (66 ) (101 ) (76 ) Nondeductible stock-based compensation 502 808 740 Meals and entertainment 192 276 234 Compensation subject to 162(m) 227 208 — Uncertain tax positions and tax settlements (1,626 ) 429 (1,701 ) Remeasurement of net deferred tax liabilities due to the Act (1,660 ) — — Net excess tax benefit or detriment from stock-based compensation plans (861 ) — — Prior period adjustment — — (2,700 ) Release of valuation allowance on state research and development credits — — (2,748 ) Goodwill Impairment — — 32,200 Other (521 ) 425 186 Total $ 15,489 $ 28,170 $ 20,446 |
Summary Of Deferred Taxes | The components of deferred tax assets and liabilities are as follows (in thousands): November 30, 2018 November 30, 2017 Deferred tax assets: Accounts receivable $ 134 $ 226 Other assets — 225 Accrued compensation 1,863 5,456 Accrued liabilities and other 2,106 5,402 Deferred revenue 1,348 1,160 Stock-based compensation 3,166 3,436 Tax credit and loss carryforwards 24,338 31,441 Gross deferred tax assets 32,955 47,346 Valuation allowance (8,790 ) (1,537 ) Total deferred tax assets 24,165 45,809 Deferred tax liabilities: Goodwill (17,966 ) (26,484 ) Unrealized FX gains — (644 ) Depreciation and amortization (7,151 ) (20,367 ) Prepaid expenses (923 ) — Total deferred tax liabilities (26,040 ) (47,495 ) Total $ (1,875 ) $ (1,686 ) |
Reconciliation Of Unrecognized Tax Benefits | A reconciliation of the balance of our unrecognized tax benefits is as follows (in thousands): Fiscal Year Ended November 30, 2018 November 30, 2017 November 30, 2016 Balance, beginning of year $ 7,520 $ 7,046 $ 4,779 Tax positions related to current year — 785 1,106 Tax positions related to a prior period (15 ) (120 ) 1,638 Settlements with tax authorities (39 ) (155 ) (21 ) Lapses due to expiration of the statute of limitations (1,679 ) (36 ) (456 ) Balance, end of year $ 5,787 $ 7,520 $ 7,046 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per share from continuing operations (in thousands, expect per share data): Fiscal Year Ended November 30, November 30, November 30, Net income (loss) $ 63,491 $ 37,417 $ (55,726 ) Weighted average shares outstanding 45,561 48,129 49,481 Dilutive impact from common stock equivalents 574 387 — Diluted weighted average shares outstanding 46,135 48,516 49,481 Basic earnings (loss) per share $ 1.39 $ 0.78 $ (1.13 ) Diluted earnings (loss) per share $ 1.38 $ 0.77 $ (1.13 ) |
Business Segments and Interna_2
Business Segments and International Operations (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table provides revenue and contribution margin from our reportable segments and reconciles to the consolidated income from continuing operations before income taxes: Fiscal Year Ended (In thousands) November 30, 2018 November 30, 2017 November 30, 2016 Segment revenue: OpenEdge $ 278,258 $ 276,172 $ 276,267 Data Connectivity and Integration 39,030 40,955 48,009 Application Development and Deployment 79,877 80,445 81,065 Total revenue 397,165 397,572 405,341 Segment costs of revenue and operating expenses: OpenEdge 67,820 72,497 72,938 Data Connectivity and Integration 7,634 9,329 12,760 Application Development and Deployment 27,087 26,645 40,180 Total costs of revenue and operating expenses 102,541 108,471 125,878 Segment contribution margin: OpenEdge 210,438 203,675 203,329 Data Connectivity and Integration 31,396 31,626 35,249 Application Development and Deployment 52,790 53,800 40,885 Total contribution margin 294,624 289,101 279,463 Other unallocated expenses (1) 208,626 218,487 309,172 Income (loss) from operations 85,998 70,614 (29,709 ) Other expense, net (7,018 ) (5,027 ) (5,571 ) Income (loss) before income taxes $ 78,980 $ 65,587 $ (35,280 ) (1) The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: certain product development and corporate sales and marketing expenses, customer support, administration, amortization and impairment of acquired intangibles, loss on assets held for sale, impairment of goodwill, stock-based compensation, fees related to shareholder activist, restructuring, and acquisition-related expenses. |
Revenue from External Customers by Revenue Type | Information relating to revenue from external customers by revenue type is as follows (in thousands): Fiscal Year Ended November 30, November 30, November 30, Software licenses $ 122,137 $ 124,406 $ 134,863 Maintenance 244,822 241,398 238,377 Services 30,206 31,768 32,101 Total $ 397,165 $ 397,572 $ 405,341 |
Revenue from External Customers from Different Geographical Areas | Information relating to revenue from external customers from different geographical areas is as follows (in thousands): Fiscal Year Ended November 30, November 30, November 30, United States $ 204,151 $ 206,450 $ 212,312 Canada 15,771 17,492 16,891 EMEA 137,972 130,359 130,818 Latin America 17,637 21,158 21,156 Asia Pacific 21,634 22,113 24,164 Total $ 397,165 $ 397,572 $ 405,341 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal year 2018: Revenue $ 94,047 $ 96,102 $ 95,683 $ 111,333 Gross profit 77,144 79,459 78,987 94,602 Income from operations 17,768 21,788 22,183 24,259 Net income 12,912 15,403 16,746 18,430 Basic earnings per share 0.28 0.34 0.37 0.41 Diluted earnings per share 0.27 0.33 0.37 0.41 Fiscal year 2017: Revenue $ 90,970 $ 93,213 $ 97,310 $ 116,079 Gross profit 75,212 75,846 79,235 98,120 Income from operations 1,222 20,284 20,299 28,809 Net (loss) income (525 ) 10,341 11,172 16,429 Basic (loss) earnings per share (0.01 ) 0.21 0.23 0.35 Diluted (loss) earnings per share (0.01 ) 0.21 0.23 0.34 |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Nov. 30, 2018USD ($)$ / shares | Aug. 31, 2018USD ($)$ / shares | May 31, 2018USD ($)$ / shares | Feb. 28, 2018USD ($)$ / shares | Nov. 30, 2017USD ($)$ / shares | Aug. 31, 2017USD ($)$ / shares | May 31, 2017USD ($)$ / shares | Feb. 28, 2017USD ($)$ / shares | Aug. 31, 2016USD ($) | Nov. 30, 2018USD ($)enterprise_customerdevelopersoftware_vendor$ / shares | Nov. 30, 2017USD ($)$ / shares | Nov. 30, 2016USD ($)$ / shares | Dec. 01, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Number of independent software vendors, more than | software_vendor | 1,700 | ||||||||||||
Number of enterprise customers, more than | enterprise_customer | 100,000 | ||||||||||||
Number of developers, more than | developer | 2,000,000 | ||||||||||||
Capitalized software development costs | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Amortization | 37,561,000 | 35,370,000 | 30,815,000 | ||||||||||
Asset impairment charges | 5,100,000 | 5,147,000 | 0 | 0 | |||||||||
Advertising costs | 1,400,000 | 1,500,000 | 2,900,000 | ||||||||||
Acquisition-related expenses | 258,000 | 1,458,000 | 1,240,000 | ||||||||||
Restructuring related costs | 2,251,000 | 22,210,000 | 1,692,000 | ||||||||||
Excess tax benefits related to share based compensation | 861,000 | 0 | 0 | ||||||||||
Other assets, noncurrent | (5,243,000) | (1,992,000) | (5,243,000) | (1,992,000) | |||||||||
Revenue | (111,333,000) | $ (95,683,000) | $ (96,102,000) | $ (94,047,000) | (116,079,000) | $ (97,310,000) | $ (93,213,000) | $ (90,970,000) | (397,165,000) | (397,572,000) | (405,341,000) | ||
Net income | $ (18,430,000) | $ (16,746,000) | $ (15,403,000) | $ (12,912,000) | $ (16,429,000) | $ (11,172,000) | $ (10,341,000) | $ 525,000 | $ (63,491,000) | $ (37,417,000) | $ 55,726,000 | ||
Diluted earnings per share (in dollars per share) | $ / shares | $ (0.41) | $ (0.37) | $ (0.33) | $ (0.27) | $ (0.34) | $ (0.23) | $ (0.21) | $ 0.01 | $ (1.38) | $ (0.77) | $ 1.13 | ||
Internal Use Software | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Useful lives of major asset | 3 years | ||||||||||||
Amortization | $ 200,000 | $ 600,000 | $ 1,000,000 | ||||||||||
Restricted Stock Units (RSUs) | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Stock-based compensation service period | 3 years | 3 years | 3 years | ||||||||||
Minimum | Computer equipment and software | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Useful lives of major asset | 3 years | ||||||||||||
Minimum | Buildings and Improvements | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Useful lives of major asset | 5 years | ||||||||||||
Minimum | Furniture and fixtures | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Useful lives of major asset | 5 years | ||||||||||||
Minimum | Stock Options | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Stock-based compensation service period | 4 years | ||||||||||||
Maximum | Computer equipment and software | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Useful lives of major asset | 7 years | ||||||||||||
Maximum | Buildings and Improvements | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Useful lives of major asset | 39 years | ||||||||||||
Maximum | Furniture and fixtures | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Useful lives of major asset | 7 years | ||||||||||||
Maximum | Stock Options | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Stock-based compensation service period | 5 years | ||||||||||||
Accounting Standards Update 2016-16 | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Other assets, noncurrent | $ 3,300,000 | ||||||||||||
Modulus | Purchased technology | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Impairment of software development costs | $ 5,100,000 | $ 5,100,000 | |||||||||||
Application Development and Deployment | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Impairment of goodwill and intangible assets | $ 0 | $ 0 | 92,000,000 | ||||||||||
Revenue | (79,877,000) | (80,445,000) | (81,065,000) | ||||||||||
Retained Earnings | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Net income | (63,491,000) | (37,417,000) | $ 55,726,000 | ||||||||||
Retained Earnings | Accounting Standards Update 2016-09 | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Cumulative effect adjustment | $ 600,000 | 600,000 | |||||||||||
Retained Earnings | Accounting Standards Update 2016-16 | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Cumulative effect adjustment | $ 3,300,000 | ||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Revenue | 18,000,000 | 8,000,000 | |||||||||||
Net income | $ 14,000,000 | $ 8,000,000 | |||||||||||
Diluted earnings per share (in dollars per share) | $ / shares | $ 0.30 | $ 0.17 |
Nature of Business and Summar_5
Nature of Business and Summary of Significant Accounting Policies (Summary of Allowances) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
SEC Schedule, 12-09, Allowance, Credit Loss | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 498 | $ 741 | $ 1,421 |
Charge (credit) to costs and expenses | 216 | 204 | (256) |
Write-offs and other | (232) | (437) | (370) |
Translation adjustments | 4 | (10) | (54) |
Ending balance | 486 | 498 | 741 |
Allowance for Sales Credit Memos | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | 178 | 402 | 772 |
Charge (credit) to costs and expenses | 46 | (158) | (223) |
Write-offs and other | 0 | (69) | (144) |
Translation adjustments | 0 | 3 | (3) |
Ending balance | $ 224 | $ 178 | $ 402 |
Nature of Business and Summar_6
Nature of Business and Summary of Significant Accounting Policies (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | $ 376,084 | $ 406,629 | $ 522,464 |
Other comprehensive income (loss) before reclassifications | (9,214) | 9,562 | |
Total other comprehensive (loss) income, net of tax | (9,214) | 9,562 | (3,933) |
Balance, end of year | 310,082 | 376,084 | 406,629 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | (18,770) | (28,425) | |
Other comprehensive income (loss) before reclassifications | (9,240) | 9,655 | |
Total other comprehensive (loss) income, net of tax | (9,240) | 9,655 | |
Balance, end of year | (28,010) | (18,770) | (28,425) |
Unrealized (Losses) Gains on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | (229) | (136) | |
Other comprehensive income (loss) before reclassifications | 26 | (93) | |
Total other comprehensive (loss) income, net of tax | 26 | (93) | |
Balance, end of year | (203) | (229) | (136) |
Total | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | (18,999) | (28,561) | (24,628) |
Total other comprehensive (loss) income, net of tax | (9,214) | 9,562 | (3,933) |
Balance, end of year | $ (28,213) | $ (18,999) | $ (28,561) |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments (Summary Of Cash, Cash Equivalents And Trading And Available-For-Sale Investments) (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 |
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | $ 105,126 | $ 133,464 | $ 207,036 | $ 212,379 |
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | (210) | (293) | ||
Cash Cash Equivalents And Investments Cost Basis | 139,723 | 183,902 | ||
Cash Cash Equivalents And Investments At Fair Value | 139,513 | 183,609 | ||
State and municipal bond obligations | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Amortized Cost Basis | 19,542 | 40,458 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | (119) | (231) | ||
Fair Value | 19,423 | 40,227 | ||
U.S. treasury bonds | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Amortized Cost Basis | 6,726 | 3,517 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | (21) | (26) | ||
Fair Value | 6,705 | 3,491 | ||
Corporate bonds | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Amortized Cost Basis | 8,329 | 6,463 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | (70) | (36) | ||
Fair Value | 8,259 | 6,427 | ||
Cash | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 101,316 | 130,547 | ||
Money market funds | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | $ 3,810 | $ 2,917 |
Cash, Cash Equivalents and In_4
Cash, Cash Equivalents and Investments (Summary of Cash, Cash Equivalents and Trading and Available-for-sale Investments by Balance Sheet Classification) (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 |
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and Equivalents | $ 105,126 | $ 133,464 | $ 207,036 | $ 212,379 |
Short-Term Investments | 34,387 | 50,145 | ||
State and municipal bond obligations | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Short-Term Investments | 19,423 | 40,227 | ||
U.S. treasury bonds | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Short-Term Investments | 6,705 | 3,491 | ||
Corporate bonds | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Short-Term Investments | 8,259 | 6,427 | ||
Cash | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and Equivalents | 101,316 | 130,547 | ||
Money market funds | ||||
Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and Equivalents | $ 3,810 | $ 2,917 |
Cash, Cash Equivalents and In_5
Cash, Cash Equivalents and Investments (Fair Value of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 |
Investments and Cash [Abstract] | ||
Due in one year or less | $ 25,051 | $ 22,333 |
Due after one year | 9,336 | 27,812 |
Total | $ 34,387 | $ 50,145 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Derivative [Line Items] | |||
Derivative liabilities | $ 170 | $ 27 | |
Forward Contracts | |||
Derivative [Line Items] | |||
Minimum maturity period, foreign currency derivative | 30 days | ||
Maximum maturity period, foreign currency derivative | 366 days | ||
Gains (losses) on foreign currency option contracts | $ (6,900) | 9,400 | $ (4,000) |
Other Noncurrent Liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities | 300 | ||
Other Current Assets | |||
Derivative [Line Items] | |||
Derivative liabilities | $ 100 | ||
Other Accrued Liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities | 200 | ||
Other Assets | |||
Derivative [Line Items] | |||
Derivative liabilities | $ 200 |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Foreign Currency Forward Contracts) (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 |
Derivative [Line Items] | ||
Derivative contracts, notional value | $ 106,070 | $ 119,654 |
Derivative contracts, fair value | (170) | (27) |
Forward contracts to sell U.S. dollars | ||
Derivative [Line Items] | ||
Derivative contracts, notional value | 105,830 | 119,192 |
Derivative contracts, fair value | (170) | (27) |
Forward contracts to purchase U.S. dollars | ||
Derivative [Line Items] | ||
Derivative contracts, notional value | 240 | 462 |
Derivative contracts, fair value | $ 0 | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements within the Fair Value Hierarchy of the Financial Assets) (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | $ 5,776 | $ 0 |
Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 8,259 | 6,427 |
U.S. treasury bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 6,705 | 3,491 |
State and municipal bond obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 19,423 | 40,227 |
Money market funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 3,810 | 2,917 |
Foreign exchange derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial liabilities | (170) | (27) |
Level 1 | Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
Level 1 | U.S. treasury bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
Level 1 | State and municipal bond obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
Level 1 | Money market funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 3,810 | 2,917 |
Level 1 | Foreign exchange derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial liabilities | 0 | 0 |
Level 2 | Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 8,259 | 6,427 |
Level 2 | U.S. treasury bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 6,705 | 3,491 |
Level 2 | State and municipal bond obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 19,423 | 40,227 |
Level 2 | Money market funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
Level 2 | Foreign exchange derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial liabilities | (170) | (27) |
Level 3 | Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
Level 3 | U.S. treasury bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
Level 3 | State and municipal bond obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
Level 3 | Money market funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial assets | 0 | 0 |
Level 3 | Foreign exchange derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of financial liabilities | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Fair Value Disclosures [Abstract] | ||||
Asset impairment charges | $ 5,100 | $ 5,147 | $ 0 | $ 0 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets held for sale | $ 5,776 | $ 5,776 | $ 0 | |
Loss on assets held for sale | 5,100 | 5,147 | $ 0 | $ 0 |
Discontinued Operations, Held-for-sale | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets held for sale | $ 5,776 | 5,776 | ||
Loss on assets held for sale | $ 5,147 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 88,322 | $ 110,983 | |
Less accumulated depreciation and amortization | (57,608) | (68,722) | |
Property and equipment, net | 30,714 | 42,261 | |
Depreciation and amortization expense | 6,900 | 7,500 | $ 8,500 |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 47,266 | 50,588 | |
Land, buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 34,676 | 50,229 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 6,104 | 7,211 | |
Capitalized software development costs | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 276 | $ 2,955 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 239,843 | $ 239,843 |
Accumulated Amortization | (180,924) | (144,949) |
Total | 58,919 | 94,894 |
Purchased technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 154,301 | 154,301 |
Accumulated Amortization | (110,959) | (88,224) |
Total | 43,342 | 66,077 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 67,802 | 67,802 |
Accumulated Amortization | (56,589) | (46,230) |
Total | 11,213 | 21,572 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 17,740 | 17,740 |
Accumulated Amortization | (13,376) | (10,495) |
Total | $ 4,364 | $ 7,245 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2016 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, amortization expense | $ 36,000,000 | $ 33,100,000 | $ 28,200,000 | |
Application Development and Deployment | ||||
Goodwill [Line Items] | ||||
Impairment of goodwill and intangible assets | $ 0 | $ 0 | 92,000,000 | |
Modulus | Purchased technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 5,100,000 | $ 5,100,000 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill (Schedule Of Future Amortization Expense From Intangible Assets Held) (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 34,932 | |
2,020 | 10,152 | |
2,021 | 10,033 | |
2,022 | 3,802 | |
Total | $ 58,919 | $ 94,894 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill (Summary Of Changes In The Carrying Amount Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Goodwill [Roll Forward] | ||
Balance, beginning of year | $ 315,041 | $ 278,067 |
Additions | 0 | 36,934 |
Translation adjustments | (49) | 40 |
Balance, end of year | 314,992 | 315,041 |
OpenEdge | ||
Goodwill [Roll Forward] | ||
Balance, beginning of year | 249,036 | |
Translation adjustments | (49) | |
Balance, end of year | 248,987 | 249,036 |
Data Connectivity and Integration | ||
Goodwill [Roll Forward] | ||
Balance, beginning of year | 19,040 | |
Translation adjustments | 0 | |
Balance, end of year | 19,040 | 19,040 |
Application Development and Deployment | ||
Goodwill [Roll Forward] | ||
Balance, beginning of year | 46,965 | |
Translation adjustments | 0 | |
Balance, end of year | $ 46,965 | $ 46,965 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) | Jun. 01, 2017 | Mar. 01, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 314,992,000 | $ 315,041,000 | $ 278,067,000 | ||
Stock-based compensation | 20,569,000 | 14,153,000 | 22,541,000 | ||
Acquisition-related expenses | 258,000 | 1,458,000 | $ 1,240,000 | ||
Kinvey, Inc. | |||||
Business Acquisition [Line Items] | |||||
Equity interests (as a percent) | 100.00% | ||||
Total purchase consideration | $ 49,200,000 | ||||
Purchase consideration, contingent consideration | $ 300,000 | ||||
Period for founder to remain with company (at least) | 2 years | ||||
Goodwill | $ 24,351,000 | ||||
Acquisition-related expenses | 300,000 | 1,100,000 | |||
DataRPM Corporation | |||||
Business Acquisition [Line Items] | |||||
Equity interests (as a percent) | 100.00% | ||||
Total purchase consideration | $ 30,000,000 | ||||
Goodwill | 12,583,000 | ||||
Acquisition-related expenses | $ 0 | 400,000 | |||
Restricted Stock Units (RSUs) | |||||
Business Acquisition [Line Items] | |||||
Vesting period | 3 years | ||||
Restricted Stock Units (RSUs) | DataRPM Corporation | |||||
Business Acquisition [Line Items] | |||||
Consideration payable in the form of restricted stock units | $ 1,700,000 | ||||
Vesting period | 2 years | ||||
Stock-based compensation | $ 100,000 | $ 400,000 |
Business Combinations (Schedule
Business Combinations (Schedule of Net Assets Acquired) (Details) - USD ($) $ in Thousands | Jun. 01, 2017 | Mar. 01, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 314,992 | $ 315,041 | $ 278,067 | ||
Kinvey, Inc. | |||||
Business Acquisition [Line Items] | |||||
Net working capital | $ (963) | ||||
Property, plant and equipment | 26 | ||||
Net deferred tax assets | 1,465 | ||||
Goodwill | 24,351 | ||||
Net assets acquired | 48,879 | ||||
DataRPM Corporation | |||||
Business Acquisition [Line Items] | |||||
Net working capital | $ (174) | ||||
Property, plant and equipment | 68 | ||||
Deferred taxes | (5,006) | ||||
Goodwill | 12,583 | ||||
Net assets acquired | 28,271 | ||||
Purchased technology | Kinvey, Inc. | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 22,100 | ||||
Acquired intangible assets, Life | 5 years | ||||
Purchased technology | DataRPM Corporation | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 19,900 | ||||
Acquired intangible assets, Life | 5 years | ||||
Trade name | Kinvey, Inc. | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 1,800 | ||||
Acquired intangible assets, Life | 5 years | ||||
Trade name | DataRPM Corporation | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 800 | ||||
Acquired intangible assets, Life | 5 years | ||||
Customer relationships | Kinvey, Inc. | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 100 | ||||
Acquired intangible assets, Life | 5 years | ||||
Customer relationships | DataRPM Corporation | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 100 | ||||
Acquired intangible assets, Life | 5 years |
Term Loan and Line of Credit (N
Term Loan and Line of Credit (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Principal repayments per eight payment schedules | $ 1,500,000 | ||
Principal repayments per four payment schedules, option one | 2,300,000 | ||
Principal repayments per four payment schedules, option two | 3,100,000 | ||
Principal repayments per three payment schedules | $ 3,900,000 | ||
Average interest rate during period (as a percent) | 3.43% | ||
Interest rate at end period (as a percent) | 3.81% | ||
Debt issuance cost | $ 1,800,000 | ||
Amortization of debt issuance costs | 400,000 | $ 400,000 | $ 400,000 |
Revolving Credit Facility | Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Term loan | 123,750,000 | ||
Unsecured credit facility | 150,000,000 | ||
Additional borrowing capacity available | 125,000,000 | ||
Line of credit facility outstanding amount | 0 | ||
Revolving Credit Facility | Credit Agreement Maturing November 2022 | |||
Line of Credit Facility [Line Items] | |||
Amount due in next twelve months | 6,200,000 | ||
Line of credit facility outstanding amount | 117,600,000 | ||
Swing Line Loans | Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Term loan | 25,000,000 | ||
Letter of Credit | Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Term loan | 25,000,000 | ||
Line of credit facility outstanding amount | $ 1,300,000 |
Term Loan and Line of Credit (F
Term Loan and Line of Credit (Future Maturities) (Details) $ in Thousands | Nov. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 6,188 |
2,020 | 9,281 |
2,021 | 12,375 |
2,022 | 89,719 |
Total | $ 117,563 |
Commitments and Contingencies_2
Commitments and Contingencies (Future Minimum Rental Payments) (Details) $ in Thousands | Nov. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 6,256 |
2,020 | 5,163 |
2,021 | 3,373 |
2,022 | 2,709 |
2,023 | 2,746 |
Thereafter | 4,337 |
Total | $ 24,584 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense, net of sub-rental income | $ 6.8 | $ 6.9 | $ 8 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | Sep. 21, 2018$ / shares | Sep. 27, 2016$ / shares | Sep. 30, 2017USD ($)$ / shares | Dec. 31, 2016$ / shares | Nov. 30, 2018USD ($)unit$ / sharesshares | Nov. 30, 2017USD ($)$ / sharesshares | Nov. 30, 2016USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||
Preferred stock, shares outstanding (in shares) | 0 | ||||||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Common stock, shares issued (in shares) | 45,114,935 | 47,281,035 | |||||
Common stock, shares outstanding (in shares) | 45,114,935 | 47,281,035 | |||||
Share repurchase program, authorized amount | $ | $ 250,000 | ||||||
Common stock repurchased and retired (in shares) | 2,900,000 | 2,200,000 | 3,100,000 | ||||
Common stock repurchased and retired, value (in dollars) | $ | $ 120,000 | $ 73,936 | $ 79,188 | ||||
Remaining authorized repurchase amount | $ | $ 100,000 | ||||||
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 0.155 | $ 0.125 | $ 0.14 | $ 0.125 | $ 0.575 | $ 0.515 | $ 0.125 |
Cash dividends, increase (as a percent) | 11.00% | ||||||
Dividends paid | $ | $ 25,800 | $ 24,100 | |||||
Deferred Stock Unit | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Deferred stock units, shares outstanding (in shares) | 136,388 | ||||||
Deferred stock unit of common stock (in shares) | unit | 1 | ||||||
Shares forfeited during period (in shares) | 13,995 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 28, 2018metric | Aug. 31, 2018 | Nov. 30, 2018USD ($)periodplan$ / sharesshares | Nov. 30, 2017USD ($)$ / sharesExecutivesshares | Nov. 30, 2016USD ($)$ / sharesExecutivesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shareholder approved stock plans | plan | 1 | ||||
Number of plans for which shareholder approval not required | plan | 2 | ||||
Unrecognized stock-based compensation expense, net of expected forfeitures | $ | $ 28.6 | ||||
Costs are expected to be recognized, weighted average period | 2 years 1 month 6 days | ||||
Number of executives whose employment was terminated | Executives | 3 | 2 | |||
Additional stock-based compensation expenses related to separation and acceleration vesting | $ | $ 1.5 | $ 0.3 | |||
2008 Stock Option And Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issuable under stock plans (in shares) | 54,510,000 | ||||
Shares available for grant under stock plans (in shares) | 2,537,256 | ||||
2002 Nonqualified Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issuable under stock plans (in shares) | 9,750,000 | ||||
Shares available for grant under stock plans (in shares) | 650,169 | ||||
2004 Inducement Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issuable under stock plans (in shares) | 1,500,000 | ||||
Shares available for grant under stock plans (in shares) | 583,021 | ||||
Sales and marketing | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional stock-based compensation expenses related to separation and acceleration vesting | $ | 0.8 | 0.2 | |||
Product development | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional stock-based compensation expenses related to separation and acceleration vesting | $ | $ 0.7 | $ 0.1 | |||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Weighted average estimated fair value of options granted, per share (in dollars per share) | $ / shares | $ 10.30 | $ 5.95 | $ 0 | ||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Number of common stock shares each restricted stock unit represents (in shares) | 1 | ||||
Stock-based compensation service period | 3 years | 3 years | 3 years | ||
Long-Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation service period | 3 years | 3 years | |||
Number of performance metrics | metric | 2 | ||||
Percentage of shares based on market conditions | 50.00% | ||||
Market condition period | 3 years | ||||
Percentage of shares based on cumulative performance condition | 50.00% | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issuable under stock plans (in shares) | 9,450,000 | ||||
ESPP offering period | 27 months | ||||
ESPP number of purchase periods | period | 9 | ||||
ESPP purchase period | 3 years | ||||
ESPP purchase price (as a percent) | 85.00% | ||||
Employee stock purchase plan, issued shares (in shares) | 225,000 | 220,000 | 266,000 | ||
Weighted average purchase price of shares (in dollars per share) | $ / shares | $ 24.27 | $ 22.27 | $ 20.01 | ||
Shares available and reserved for issuance (in shares) | 590,000 | ||||
Weighted average estimated fair value of options granted, per share (in dollars per share) | $ / shares | $ 10.24 | $ 8.32 | $ 7.43 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Nov. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 1,002 |
Granted (in shares) | shares | 482 |
Exercised (in shares) | shares | (189) |
Canceled (in shares) | shares | (188) |
Ending balance (in shares) | shares | 1,107 |
Exercisable (in shares) | shares | 269 |
Vested or expected to vest (in shares) | shares | 1,107 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Options outstanding, weighted average exercise price, beginning of year (in dollars per share) | $ 28.29 |
Granted, weighted average exercise price (in dollars per share) | 49.56 |
Exercised, weighted average exercise price (in dollars per share) | 23.40 |
Canceled, weighted average exercise price (in dollars per share) | 34.38 |
Options outstanding, weighted average exercise price, end of year (in dollars per share) | 37.82 |
Exercisable, weighted average exercise price (in dollars per share) | 33.80 |
Vested or expected to vest, weighted average exercise price (in dollars per share) | $ 37.82 |
Options Outstanding, weighted average remaining contractual term (in years) | 5 years 7 months 10 days |
Exercisable, weighted average remaining contractual term (in years) | 5 years 3 months 29 days |
Vested or expected to vest, weighted average remaining contractual term (in years) | 5 years 7 months 10 days |
Options outstanding, aggregate intrinsic value | $ | $ 3,610 |
Exercisable, aggregate intrinsic value | $ | 1,206 |
Vested or expected to vest, aggregate intrinsic value | $ | $ 3,610 |
Share price (in dollars per share) | $ 35.16 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Status of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Nov. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Beginning balance (in shares) | shares | 1,136 |
Granted (in shares) | shares | 362 |
Issued (in shares) | shares | (393) |
Canceled (in shares) | shares | (193) |
Ending balance (in shares) | shares | 912 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant date fair value, beginning of year (in dollars per share) | $ / shares | $ 28.15 |
Weighted average grant date fair value, Granted (in dollars per share) | $ / shares | 49.06 |
Weighted average grant date fair value, Issued (in dollars per share) | $ / shares | 30 |
Weighted average grant date fair value, Canceled (in dollars per share) | $ / shares | 28.61 |
Weighted average grant date fair value, end of year (in dollars per share) | $ / shares | $ 35.46 |
Stock-Based Compensation (Fair
Stock-Based Compensation (Fair Value of Options and Employee Stock Purchase Plan) (Details) | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 22.80% | 25.00% | 0.00% |
Risk-free interest rate | 2.30% | 1.90% | 0.00% |
Expected life (in years) | 4 years 9 months 18 days | 4 years 9 months 18 days | |
Expected dividend yield | 1.10% | 1.70% | 0.00% |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 23.80% | 22.90% | 25.30% |
Risk-free interest rate | 2.30% | 1.20% | 0.60% |
Expected life (in years) | 1 year 8 months 12 days | 1 year 6 months | 1 year 7 months 6 days |
Expected dividend yield | 1.50% | 1.60% | 0.00% |
Long-Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 27.40% | 27.50% | 27.10% |
Risk-free interest rate | 2.10% | 1.40% | 1.00% |
Expected life (in years) | 2 years 10 months 17 days | 2 years 8 months 12 days | 2 years 8 months 12 days |
Expected dividend yield | 1.70% | 1.80% | 0.00% |
Stock-Based Compensation (Activ
Stock-Based Compensation (Activity Stock Options and Stock Awards) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of stock options on date exercised | $ 3,692 | $ 1,622 | $ 2,017 |
Total fair value of restricted stock units and deferred stock units on date vested | 16,431 | 20,089 | 17,213 |
Deferred Stock Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of restricted stock units and deferred stock units on date vested | 1,690 | 57 | 0 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of restricted stock units and deferred stock units on date vested | $ 14,741 | $ 20,032 | $ 17,213 |
Stock-Based Compensation (Class
Stock-Based Compensation (Classification of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 20,569 | $ 14,153 | $ 22,541 |
Income tax benefit included in the provision for income taxes from continuing operations | 4,345 | 4,057 | 5,208 |
Cost of maintenance and services | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 616 | 1,016 | 899 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 2,959 | 2,214 | 4,093 |
Product development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 8,242 | 4,576 | 9,965 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 8,752 | $ 6,347 | $ 7,584 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Retirement Benefits [Abstract] | |||
Company contributions to the plan | $ 3.1 | $ 2.1 | $ 2.5 |
Restructuring (Summary of Restr
Restructuring (Summary of Restructuring Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $ 4,126 | $ 1,550 | $ 3,361 |
Costs incurred | 22,210 | 1,692 | |
Cash disbursements | (6,111) | (19,234) | (3,539) |
Translation adjustments and other | 45 | 362 | 36 |
Asset impairment | (762) | ||
Ending Balance | 311 | 4,126 | 1,550 |
Excess Facilities and Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 570 | 107 | 412 |
Costs incurred | 1,011 | 2,655 | 319 |
Cash disbursements | (1,309) | (1,456) | (633) |
Translation adjustments and other | 35 | 26 | 9 |
Asset impairment | (762) | ||
Ending Balance | 307 | 570 | 107 |
Employee Severance and Related Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 3,556 | 1,443 | 2,949 |
Costs incurred | 1,240 | 19,555 | 1,373 |
Cash disbursements | (4,802) | (17,778) | (2,906) |
Translation adjustments and other | 10 | 336 | 27 |
Asset impairment | 0 | ||
Ending Balance | 4 | 3,556 | 1,443 |
2017 Restructuring Activities | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 4,096 | 0 | |
Costs incurred | 2,251 | 22,125 | |
Cash disbursements | (6,081) | (17,629) | |
Translation adjustments and other | 45 | 362 | |
Asset impairment | (762) | ||
Ending Balance | 311 | 4,096 | 0 |
2017 Restructuring Activities | Excess Facilities and Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 540 | 0 | |
Costs incurred | 1,011 | 2,570 | |
Cash disbursements | (1,279) | (1,294) | |
Translation adjustments and other | 35 | 26 | |
Asset impairment | (762) | ||
Ending Balance | 307 | 540 | 0 |
2017 Restructuring Activities | Employee Severance and Related Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 3,556 | 0 | |
Costs incurred | 1,240 | 19,555 | |
Cash disbursements | (4,802) | (16,335) | |
Translation adjustments and other | 10 | 336 | |
Asset impairment | 0 | ||
Ending Balance | 4 | 3,556 | 0 |
2016 Restructuring Activities | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 1,415 | 0 |
Costs incurred | 1,500 | 1,482 | |
Cash disbursements | (1,415) | (67) | |
Ending Balance | 0 | 1,415 | |
2016 Restructuring Activities | Excess Facilities and Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 0 | 0 |
Costs incurred | 0 | ||
Cash disbursements | 0 | 0 | |
Ending Balance | 0 | 0 | |
2016 Restructuring Activities | Employee Severance and Related Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 1,415 | 0 |
Costs incurred | 1,482 | ||
Cash disbursements | (1,415) | (67) | |
Ending Balance | 0 | 1,415 | |
2012 - 2015 Restructuring Activities | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 30 | 135 | 3,361 |
Costs incurred | 85 | 210 | |
Cash disbursements | (30) | (190) | (3,472) |
Translation adjustments and other | 36 | ||
Ending Balance | 0 | 30 | 135 |
2012 - 2015 Restructuring Activities | Excess Facilities and Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 30 | 107 | 412 |
Costs incurred | 85 | 319 | |
Cash disbursements | (30) | (162) | (633) |
Translation adjustments and other | 9 | ||
Ending Balance | 0 | 30 | 107 |
2012 - 2015 Restructuring Activities | Employee Severance and Related Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 28 | 2,949 |
Costs incurred | 0 | (109) | |
Cash disbursements | 0 | (28) | (2,839) |
Translation adjustments and other | 27 | ||
Ending Balance | $ 0 | $ 0 | $ 28 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 22,210 | $ 1,692 | ||
2017 Restructuring Activities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percentage of reduction of global workforce (more than) | 20.00% | |||
Restructuring expenses | $ 2,251 | 22,125 | ||
2016 Restructuring Activities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 1,500 | 1,482 | ||
2012 - 2015 Restructuring Activities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 85 | $ 210 | ||
Other Accrued Liabilities | 2017 Restructuring Activities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Short-term restructuring reserves | $ 300 |
Income Taxes (Components Of Pre
Income Taxes (Components Of Pretax Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 75,667 | $ 77,442 | $ 78,477 |
Foreign | 3,313 | (11,855) | (113,757) |
Total | $ 78,980 | $ 65,587 | $ (35,280) |
Income Taxes (Provisions For In
Income Taxes (Provisions For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Current: | |||
Federal | $ 8,979 | $ 23,739 | $ 12,934 |
State | 1,387 | 2,461 | 3,178 |
Foreign | 3,088 | 1,496 | 3,027 |
Total current | 13,454 | 27,696 | 19,139 |
Deferred: | |||
Federal | 2,738 | 1,548 | 6,203 |
State | 515 | 61 | (1,963) |
Foreign | (1,218) | (1,135) | (2,933) |
Total deferred | 2,035 | 474 | 1,307 |
Total | $ 15,489 | $ 28,170 | $ 20,446 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of The U.S. Federal Statutory Rate To The Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax at U.S. Federal statutory rate | $ 17,549 | $ 22,955 | $ (12,348) |
Foreign rate differences | 1,042 | 4,575 | 7,689 |
Effects of foreign operations included in U.S. Federal provision | 550 | (186) | (1,244) |
State income taxes, net | 1,746 | 1,702 | 2,977 |
Research credits | (302) | (251) | (838) |
Domestic production activities deduction | (1,283) | (2,670) | (1,925) |
Tax-exempt interest | (66) | (101) | (76) |
Nondeductible stock-based compensation | 502 | 808 | 740 |
Meals and entertainment | 192 | 276 | 234 |
Compensation subject to 162(m) | 227 | 208 | 0 |
Uncertain tax positions and tax settlements | (1,626) | 429 | (1,701) |
Remeasurement of net deferred tax liabilities due to the Act | (1,660) | 0 | 0 |
Net excess tax benefit or detriment from stock-based compensation plans | (861) | 0 | 0 |
Prior period adjustment | 0 | 0 | (2,700) |
Release of valuation allowance on state research and development credits | 0 | 0 | (2,748) |
Goodwill Impairment | 0 | 0 | 32,200 |
Other | (521) | 425 | 186 |
Total | $ 15,489 | $ 28,170 | $ 20,446 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
May 31, 2016 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | $ 15,489 | $ 28,170 | $ 20,446 | ||
Income tax benefit due to the re-measurement of its net U.S. deferred tax liabilities due to the Act | 1,660 | 0 | 0 | ||
Decrease in valuation allowance | 7,300 | 1,700 | 5,000 | ||
Cumulative undistributed foreign earnings | 92,200 | ||||
Unrecognized tax benefits | 5,787 | 7,520 | $ 7,046 | $ 4,779 | |
Deferred tax assets related to operating loss carryforwards, not recorded | 2,200 | ||||
Income tax benefit recorded to as a result of interest and penalties | 100 | ||||
Interest and penalties recorded to provision for income taxes | 200 | 200 | |||
Reduction related to statue of expiration due to interest and penalties | 300 | ||||
Accrued estimated interest and penalties | 400 | $ 500 | |||
Federal and Foreign | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | 146,500 | ||||
Indefinite-Lived Carryforwards | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | 100 | ||||
Tax credit carryforwards | 2,300 | ||||
State | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | 4,800 | ||||
Tax credit carryforwards | 2,900 | ||||
Federal | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax credit carryforwards | 900 | ||||
Other Noncurrent Liabilities | |||||
Operating Loss Carryforwards [Line Items] | |||||
Unrecognized tax benefits | $ 3,600 | ||||
Out of Period Tax Adjustment | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | $ (2,700) | $ 2,700 |
Income Taxes (Summary Of Deferr
Income Taxes (Summary Of Deferred Taxes) (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 |
Deferred tax assets: | ||
Accounts receivable | $ 134 | $ 226 |
Other assets | 0 | 225 |
Accrued compensation | 1,863 | 5,456 |
Accrued liabilities and other | 2,106 | 5,402 |
Deferred revenue | 1,348 | 1,160 |
Stock-based compensation | 3,166 | 3,436 |
Tax credit and loss carryforwards | 24,338 | 31,441 |
Gross deferred tax assets | 32,955 | 47,346 |
Valuation allowance | (8,790) | (1,537) |
Total deferred tax assets | 24,165 | 45,809 |
Deferred tax liabilities: | ||
Goodwill | (17,966) | (26,484) |
Unrealized FX gains | 0 | (644) |
Depreciation and amortization | (7,151) | (20,367) |
Prepaid expenses | (923) | 0 |
Total deferred tax liabilities | (26,040) | (47,495) |
Total deferred tax liabilities, net | $ (1,875) | $ (1,686) |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance, beginning of year | $ 7,520 | $ 7,046 | $ 4,779 |
Tax positions related to current year | 0 | 785 | 1,106 |
Tax positions related to a prior period | (15) | (120) | |
Tax positions related to a prior period | 1,638 | ||
Settlements with tax authorities | (39) | (155) | (21) |
Lapses due to expiration of the statute of limitations | (1,679) | (36) | (456) |
Balance, end of year | $ 5,787 | $ 7,520 | $ 7,046 |
Earnings (Loss) Per Share (Calc
Earnings (Loss) Per Share (Calculation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ 18,430 | $ 16,746 | $ 15,403 | $ 12,912 | $ 16,429 | $ 11,172 | $ 10,341 | $ (525) | $ 63,491 | $ 37,417 | $ (55,726) |
Weighted average shares outstanding (in shares) | 45,561 | 48,129 | 49,481 | ||||||||
Dilutive impact from common stock equivalents (in shares) | 574 | 387 | 0 | ||||||||
Diluted weighted average shares outstanding (in shares) | 46,135 | 48,516 | 49,481 | ||||||||
Basic earnings (loss) per share (in dollars per share) | $ 0.41 | $ 0.37 | $ 0.34 | $ 0.28 | $ 0.35 | $ 0.23 | $ 0.21 | $ (0.01) | $ 1.39 | $ 0.78 | $ (1.13) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.41 | $ 0.37 | $ 0.33 | $ 0.27 | $ 0.34 | $ 0.23 | $ 0.21 | $ (0.01) | $ 1.38 | $ 0.77 | $ (1.13) |
Earnings (Loss) Per Share (Narr
Earnings (Loss) Per Share (Narrative) (Details) - shares shares in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Earnings Per Share [Abstract] | |||
Number of shares excluded from the calculation of diluted earnings per share (in shares) | 602 | 494 | 2,058 |
Business Segments and Interna_3
Business Segments and International Operations (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018USD ($)segment | Nov. 30, 2017USD ($) | Nov. 30, 2016USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 3 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 30,714 | $ 42,261 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 25,800 | 39,500 | $ 45,400 |
Outside United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 4,900 | $ 2,800 | $ 4,700 |
Business Segments and Interna_4
Business Segments and International Operations (Income from Continuing Operations by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenue | $ 111,333 | $ 95,683 | $ 96,102 | $ 94,047 | $ 116,079 | $ 97,310 | $ 93,213 | $ 90,970 | $ 397,165 | $ 397,572 | $ 405,341 |
Total costs of revenue and operating expenses | 102,541 | 108,471 | 125,878 | ||||||||
Total contribution margin | 294,624 | 289,101 | 279,463 | ||||||||
Other unallocated expenses | 208,626 | 218,487 | 309,172 | ||||||||
Income (loss) from operations | $ 24,259 | $ 22,183 | $ 21,788 | $ 17,768 | $ 28,809 | $ 20,299 | $ 20,284 | $ 1,222 | 85,998 | 70,614 | (29,709) |
Other expense, net | (7,018) | (5,027) | (5,571) | ||||||||
Income (loss) before income taxes | 78,980 | 65,587 | (35,280) | ||||||||
OpenEdge | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenue | 278,258 | 276,172 | 276,267 | ||||||||
Total costs of revenue and operating expenses | 67,820 | 72,497 | 72,938 | ||||||||
Total contribution margin | 210,438 | 203,675 | 203,329 | ||||||||
Data Connectivity and Integration | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenue | 39,030 | 40,955 | 48,009 | ||||||||
Total costs of revenue and operating expenses | 7,634 | 9,329 | 12,760 | ||||||||
Total contribution margin | 31,396 | 31,626 | 35,249 | ||||||||
Application Development and Deployment | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total revenue | 79,877 | 80,445 | 81,065 | ||||||||
Total costs of revenue and operating expenses | 27,087 | 26,645 | 40,180 | ||||||||
Total contribution margin | $ 52,790 | $ 53,800 | $ 40,885 |
Business Segments and Interna_5
Business Segments and International Operations (Revenue from External Customers by Revenue Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 111,333 | $ 95,683 | $ 96,102 | $ 94,047 | $ 116,079 | $ 97,310 | $ 93,213 | $ 90,970 | $ 397,165 | $ 397,572 | $ 405,341 |
Software licenses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 122,137 | 124,406 | 134,863 | ||||||||
Maintenance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 244,822 | 241,398 | 238,377 | ||||||||
Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 30,206 | $ 31,768 | $ 32,101 |
Business Segments and Interna_6
Business Segments and International Operations (Revenue from External Customers from Different Geographical Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 111,333 | $ 95,683 | $ 96,102 | $ 94,047 | $ 116,079 | $ 97,310 | $ 93,213 | $ 90,970 | $ 397,165 | $ 397,572 | $ 405,341 |
United States | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 204,151 | 206,450 | 212,312 | ||||||||
Canada | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 15,771 | 17,492 | 16,891 | ||||||||
EMEA | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 137,972 | 130,359 | 130,818 | ||||||||
Latin America | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | 17,637 | 21,158 | 21,156 | ||||||||
Asia Pacific | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenue | $ 21,634 | $ 22,113 | $ 24,164 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 111,333 | $ 95,683 | $ 96,102 | $ 94,047 | $ 116,079 | $ 97,310 | $ 93,213 | $ 90,970 | $ 397,165 | $ 397,572 | $ 405,341 |
Gross profit | 94,602 | 78,987 | 79,459 | 77,144 | 98,120 | 79,235 | 75,846 | 75,212 | 330,192 | 328,413 | 339,629 |
Income (loss) from operations | 24,259 | 22,183 | 21,788 | 17,768 | 28,809 | 20,299 | 20,284 | 1,222 | 85,998 | 70,614 | (29,709) |
Net income (loss) | $ 18,430 | $ 16,746 | $ 15,403 | $ 12,912 | $ 16,429 | $ 11,172 | $ 10,341 | $ (525) | $ 63,491 | $ 37,417 | $ (55,726) |
Basic earnings (loss) per share (in dollars per share) | $ 0.41 | $ 0.37 | $ 0.34 | $ 0.28 | $ 0.35 | $ 0.23 | $ 0.21 | $ (0.01) | $ 1.39 | $ 0.78 | $ (1.13) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.41 | $ 0.37 | $ 0.33 | $ 0.27 | $ 0.34 | $ 0.23 | $ 0.21 | $ (0.01) | $ 1.38 | $ 0.77 | $ (1.13) |
Related Party Transactions (Det
Related Party Transactions (Details) - Might Meeting, Inc. - Acquisition of Affiliated Entity - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Nov. 30, 2017 | Nov. 30, 2018 | |
Related Party Transaction [Line Items] | ||
Equity interests (as a percent) | 100.00% | |
Consideration transferred | $ 1.5 | |
Intangible assets recognized | $ 2.4 | |
Deferred tax liability assumed | $ 0.9 | |
Deferred tax liability amortization period | 5 years | |
Chief Technology Officer | ||
Related Party Transaction [Line Items] | ||
Equity interests (as a percent) | 50.00% |