Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PEGA | |
Entity Registrant Name | PEGASYSTEMS INC. | |
Entity Central Index Key | 1,013,857 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 78,575,803 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 165,790 | $ 162,279 | |
Marketable securities | 89,047 | 61,469 | |
Total cash, cash equivalents, and marketable securities | 254,837 | 223,748 | |
Accounts receivable | 164,981 | 222,735 | |
Unbilled receivables | 153,657 | 158,898 | |
Other current assets | 50,692 | 41,135 | |
Total current assets | 624,167 | 646,516 | |
Long-term unbilled receivables | 180,077 | 160,708 | |
Goodwill | 73,017 | 72,952 | |
Other long-term assets | 128,694 | 131,391 | |
Total assets | 1,005,955 | 1,011,567 | |
Current liabilities: | |||
Accounts payable | 12,175 | 17,370 | |
Accrued expenses | 48,278 | 45,508 | |
Accrued compensation and related expenses | 44,093 | 66,040 | |
Deferred revenue | 175,586 | 166,297 | |
Total current liabilities | 280,132 | 295,215 | |
Deferred income tax liabilities | 39,932 | 38,463 | |
Other long-term liabilities | 23,768 | 23,652 | |
Total liabilities | 343,832 | 357,330 | |
Stockholders' equity: | |||
Preferred stock, 1,000 shares authorized; no shares issued and outstanding | |||
Common stock, 200,000 shares authorized; 78,546 shares and 78,081 issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 785 | 781 | |
Additional paid-in capital | 145,962 | 152,097 | |
Retained earnings | 517,893 | 508,051 | |
Accumulated other comprehensive loss | (2,517) | (6,692) | |
Total stockholders' equity | 662,123 | 654,237 | |
Total liabilities and stockholders' equity | $ 1,005,955 | $ 1,011,567 | |
[1] | The Company adopted the new revenue recognition standard ("ASC 606") on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Mar. 31, 2018 | Dec. 31, 2017 | [1] |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, shares authorized | 200,000,000 | 200,000,000 | |
Common stock, shares issued | 78,546,000 | 78,081,000 | |
Common stock, shares outstanding | 78,546,000 | 78,081,000 | |
[1] | The Company adopted the new revenue recognition standard ("ASC 606") on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | [1] | |
Revenue | |||
Software license | $ 87,773 | $ 127,008 | |
Maintenance | 64,525 | 58,713 | |
Services | 82,884 | 70,588 | |
Total revenue | 235,182 | 256,309 | |
Cost of revenue | |||
Software license | 1,255 | 1,300 | |
Maintenance | 6,082 | 7,218 | |
Services | 68,277 | 59,572 | |
Total cost of revenue | 75,614 | 68,090 | |
Gross profit | 159,568 | 188,219 | |
Operating expenses | |||
Selling and marketing | 88,383 | 69,681 | |
Research and development | 46,785 | 40,296 | |
General and administrative | 16,464 | 12,335 | |
Total operating expenses | 151,632 | 122,312 | |
Income from operations | 7,936 | 65,907 | |
Foreign currency transaction (loss)/gain | (1,085) | 745 | |
Interest income, net | 764 | 205 | |
Other income/(expense), net | 363 | (279) | |
Income before (benefit)/provision for income taxes | 7,978 | 66,578 | |
(Benefit)/provision for income taxes | (4,222) | 13,615 | |
Net income | $ 12,200 | $ 52,963 | |
Earnings per share | |||
Basic | $ 0.16 | $ 0.69 | |
Diluted | $ 0.15 | $ 0.65 | |
Weighted-average number of common shares outstanding | |||
Basic | 78,236 | 76,761 | |
Diluted | 83,102 | 81,875 | |
Cash dividends declared per share | $ 0.03 | $ 0.03 | |
[1] | The Company adopted ASC 606 on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | [1] | |
Net income | $ 12,200 | $ 52,963 | |
Other comprehensive income, net of tax | |||
Unrealized (loss)/gain on available-for-sale marketable securities, net of tax | (188) | 127 | |
Foreign currency translation adjustments | 4,363 | 2,229 | |
Total other comprehensive income, net of tax | 4,175 | 2,356 | |
Comprehensive income | $ 16,375 | $ 55,319 | |
[1] | The Company adopted ASC 606 on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | [1] | ||
Operating activities: | ||||
Net income | $ 12,200 | $ 52,963 | ||
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Change in operating assets and liabilities, net | 19,591 | (47,555) | ||
Stock-based compensation expense | 15,109 | 12,508 | ||
Depreciation and amortization of intangible assets | 6,145 | 6,088 | ||
Other non-cash | 2,610 | 8,440 | ||
Cash provided by operating activities | 55,655 | 32,444 | ||
Investing activities: | ||||
Purchases of investments | (35,204) | (3,322) | ||
Proceeds from maturities and called investments | 5,995 | 2,300 | ||
Other | (2,069) | (2,705) | ||
Cash used in investing activities | (31,278) | (3,727) | ||
Financing activities: | ||||
Dividend payments to shareholders | (2,344) | (2,298) | ||
Common stock repurchases | (20,708) | (13,696) | ||
Cash used in financing activities | (23,052) | (15,994) | ||
Effect of exchange rates on cash and cash equivalents | 2,186 | 521 | ||
Net increase in cash and cash equivalents | 3,511 | 13,244 | ||
Cash and cash equivalents, beginning of period | 162,279 | [2] | 70,594 | |
Cash and cash equivalents, end of period | $ 165,790 | $ 83,838 | ||
[1] | The Company adopted ASC 606 on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. | |||
[2] | The Company adopted the new revenue recognition standard ("ASC 606") on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2018 | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Pegasystems Inc. (together with its subsidiaries, “the Company”) has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements and should be read in conjunction with the Company’s audited financial statements included in the Annual Report on Form 10-K On January 1, 2018 the Company adopted Accounting Standards Update (“ASU”) ASU No. 2014-09, In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited financial statements, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2018. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2018 | |
NEW ACCOUNTING PRONOUNCEMENTS | 2. NEW ACCOUNTING PRONOUNCEMENTS Financial Instruments In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, available-for-sale Leases In February 2016, the FASB issued ASU No. 2016-02, right-of-use right-of-use ASC 606 and ASC 340-40 In May 2014, the FASB issued ASU No. 2014-09, 340-40 The most significant impacts of adopting ASC 606 and ASC 340-40 • Perpetual licenses with extended payment terms and term licenses • Allocation of future credits and significant discounts • Deferred contract costs 340-40 • Taxes For additional information on the Company’s accounting policies as a result of the adoption of ASC 606 and ASC 340-40 The impact of the adoption ASC 606 and ASC 340-40 December 31, 2017 (in thousands) Previously reported Adjustments As adjusted Accounts receivable and unbilled receivables $ 248,331 $ 133,302 $ 381,633 Contract assets — 914 914 Long-term unbilled receivables — 160,708 160,708 Deferred income taxes 57,127 (42,887) 14,240 Deferred contract costs — 37,924 37,924 Other assets (1) 416,148 — 416,148 Total Assets 721,606 289,961 1,011,567 Deferred revenue 195,073 (28,776) 166,297 Long-term deferred revenue 6,591 (2,885) 3,706 Deferred income tax liabilities — 38,463 38,463 Other liabilities (2) 148,864 — 148,864 Total liabilities 350,528 6,802 357,330 Foreign currency translation adjustments (3,494) (2,966) (6,460) Retained earnings 221,926 286,125 508,051 Other equity (3) 152,646 — 152,646 Total stockholders’ equity 371,078 283,159 654,237 Total liabilities and stockholders’ equity $ 721,606 $ 289,961 $ 1,011,567 (1) Includes cash and cash equivalents, marketable securities, income taxes receivable, other current assets, property and equipment, intangible assets, goodwill, and other long-term assets (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K (2) Includes accounts payable, accrued expenses, accrued compensation and related expenses, income taxes payable, and other long-term liabilities (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K (3) Includes common stock, additional paid-in available-for-sale 10-K Three Months Ended March 31, 2017 (in thousands, except per share amounts) Previously reported Adjustments As adjusted Revenue: Software license $ 92,390 $ 34,618 $ 127,008 Maintenance 58,965 (252) 58,713 Services 71,892 (1,304) 70,588 Total revenue 223,247 33,062 256,309 Cost of revenue: Software license 1,300 — 1,300 Maintenance 7,218 — 7,218 Services 59,572 — 59,572 Total cost of revenue 68,090 — 68,090 Gross profit 155,157 33,062 188,219 Operating expenses: Selling and marketing 71,288 (1,607 ) 69,681 Research and development 40,296 — 40,296 General and administrative 12,335 — 12,335 Total operating expenses 123,919 (1,607 ) 122,312 Income from operations 31,238 34,669 65,907 Foreign currency transaction gain 676 69 745 Interest income, net 165 40 205 Other expense, net (279) — (279) Income before provision for income taxes 31,800 34,778 66,578 Provision for income taxes 4,779 8,836 13,615 Net income $ 27,021 $ 25,942 $ 52,963 Earnings per share: Basic $ 0.35 $ 0.69 Diluted $ 0.33 $ 0.65 Weighted-average number of common shares outstanding: Basic 76,761 76,761 Diluted 81,875 81,875 Adoption of ASC 606 had no impact on total cash from or used in operating, financing, or investing activities in the Company’s unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2017. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 3 Months Ended |
Mar. 31, 2018 | |
MARKETABLE SECURITIES | 3. MARKETABLE SECURITIES March 31, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 50,782 $ — $ (191) $ 50,591 Corporate bonds 38,761 1 (306) 38,456 $ 89,543 $ 1 $ (497) $ 89,047 December 31, 2017 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 32,996 $ — $ (148) $ 32,848 Corporate bonds 28,757 1 (137) 28,621 $ 61,753 $ 1 $ (285) $ 61,469 As of March 31, 2018, the Company did not hold any investments with unrealized losses that are considered to be other-than-temporary. As of March 31, 2018, remaining maturities of marketable securities ranged from May 2018 to February 2021, with a weighted-average remaining maturity of approximately 1.4 years. |
RECEIVABLES, CONTRACT ASSETS, A
RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE | 3 Months Ended |
Mar. 31, 2018 | |
RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE | 4. RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE Receivables (in thousands) March 31, 2018 December 31, 2017 Accounts receivable $ 164,981 $ 222,735 Unbilled receivables 153,657 158,898 Long-term unbilled receivables 180,077 160,708 Total receivables $ 498,715 $ 542,341 Unbilled receivables is the amount due from clients where the only condition on the right of payment is the passage of time. The Company regularly reassesses receivables for collectability. As of March 31, 2018 and December 31, 2017, the allowance for doubtful accounts was not material. Long-term unbilled receivables are expected to be billed as follows: (in thousands) March 31, 2018 2019 $ 82,518 2020 58,433 2021 31,129 2022 and thereafter 7,997 $ 180,077 Contract assets and deferred revenue (in thousands) March 31, 2018 December 31, 2017 Contract assets (1) $ 788 $ 914 Deferred revenue 175,586 166,297 Long-term deferred revenue (2) $ 3,277 $ 3,706 (1) (2) Contract assets and deferred revenue are presented net at the contract level for each reporting period. Contract assets are unbilled amounts resulting from client contracts where revenue recognized exceeds the amount billed to the client and the right to payment is subject to conditions other than the passage of time, such as the completion of a related performance obligation. Deferred revenue consists of billings and payments received in advance of revenue recognition. The change in deferred revenue in the three months ended March 31, 2018, excluding the impact of the netting of contract assets and deferred revenue, was primarily due to new billings in advance of revenue recognition and $101.6 million of revenue recognized that was included in deferred revenue at December 31, 2017. Major clients No client represented 10% or more of the Company’s total receivables as of March 31, 2018 or December 31, 2017. |
DEFERRED CONTRACT COSTS
DEFERRED CONTRACT COSTS | 3 Months Ended |
Mar. 31, 2018 | |
DEFERRED CONTRACT COSTS | 5. DEFERRED CONTRACT COSTS Sales incentives paid by the Company are considered incremental and recoverable costs of obtaining a contract with a client. These costs are deferred, as a long-term asset, and then amortized using the straight-line method over the period of benefit which is on average five years. The Company determined the period of benefit by taking into consideration client contracts, the Company’s technology, and other factors. The Company utilizes a practical expedient available under ASC 606 to expense costs to obtain a contract as incurred when the original amortization period is one year or less. During the three months ended March 31, 2018 and 2017, impairment of deferred contract costs was not material. (in thousands) March 31, 2018 December 31, 2017 Deferred contract costs (1) $ 39,781 $ 37,924 (1) Amortization of deferred contract costs was as follows: Three Months Ended March 31, (in thousands) 2018 2017 Amortization of deferred contract costs (1) $3,789 $2,594 (1) |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2018 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 6. GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill were as follows: (in thousands) Three Months Ended March 31, 2018 Balance as of January 1, $ 72,952 Purchase price adjustments to goodwill — Currency translation adjustments 65 Balance as of March 31, $ 73,017 Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives as follows: March 31, 2018 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 9-10 years $ 63,197 $ (46,456) $ 16,741 Technology 7-10 58,942 (46,603) 12,339 Other intangibles — 5,361 (5,361) — $ 127,500 $ (98,420) $ 29,080 (1) December 31, 2017 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 9-10 years $ 63,164 $ (44,835) $ 18,329 Technology 7-10 58,942 (45,372) 13,570 Other intangibles — 5,361 (5,361) — $ 127,467 $ (95,568) $ 31,899 (1) Included in other long-term assets in the unaudited condensed consolidated balance sheets. Amortization of intangibles assets is reflected in the Company’s unaudited condensed consolidated statements of operations as follows: Three Months Ended (in thousands) 2018 2017 Cost of revenue $ 1,232 $ 1,334 Selling and marketing 1,605 1,866 $ 2,837 $ 3,200 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 3 Months Ended |
Mar. 31, 2018 | |
ACCRUED EXPENSES | 7. ACCRUED EXPENSES (in thousands) March 31, 2018 December 31, 2017 Outside professional services $ 15,152 $ 14,468 Income and other taxes 7,272 7,420 Marketing and sales program expenses 8,724 6,444 Dividends payable 2,358 2,344 Employee-related expenses 5,091 4,065 Other 9,681 10,767 $ 48,278 $ 45,508 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2018 | |
FAIR VALUE MEASUREMENTS | 8. FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company records its cash equivalents, marketable securities, and investments in privately-held companies at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability. As a basis for classifying the fair value measurements, a three-tier fair value hierarchy, which classifies the fair value measurements based on the inputs used in measuring fair value, was established as follows: • Level 1 - observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2 - significant other inputs that are observable either directly or indirectly; and • Level 3 - significant unobservable inputs on which there is little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company’s cash equivalents are composed of money market funds and time deposits which are classified as Level 1 and Level 2, respectively, in the fair value hierarchy. The Company’s marketable securities, which are classified within Level 2 of the fair value hierarchy are valued based on a market approach using quoted prices, when available, or matrix pricing compiled by third party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. The Company’s investments in privately-held companies are classified within Level 3 of the fair value hierarchy and are valued using model-based techniques, including option pricing models and discounted cash flow models. If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. There were no transfers between levels during the three months ended March 31, 2018. The Company’s assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ 130 $ 30,072 $ — $ 30,202 Marketable securities: Municipal bonds $ — $ 50,591 $ — $ 50,591 Corporate bonds — 38,456 — 38,456 Total marketable securities $ — $ 89,047 $ — $ 89,047 Investments in privately-held companies (1) $ — $ — $ 2,060 $ 2,060 (1) December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 2,720 $ 40,051 $ — $ 42,771 Marketable securities: Municipal bonds $ — $ 32,848 $ — $ 32,848 Corporate bonds — 28,621 — 28,621 Total marketable securities $ — $ 61,469 $ — $ 61,469 Investments in privately-held companies (1) $ — $ — $ 1,030 $ 1,030 (1) For certain other financial instruments, including accounts receivable and accounts payable, the carrying value approximates their fair value due to the relatively short maturity of these items. Assets Measured at Fair Value on a Nonrecurring Basis Assets recorded at fair value on a nonrecurring basis, including property and equipment and intangible assets, are recognized at fair value when they are impaired. During the three months ended March 31, 2018 and 2017, the Company did not recognize any impairments of its assets recorded at fair value on a nonrecurring basis. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2018 | |
REVENUE | 9. REVENUE Revenue policy The Company’s revenue is derived from sales of software licenses, maintenance fees related to the Company’s software licenses, and services. • License revenue is primarily derived from sales of the Company’s software applications and Pega Platform. • Maintenance revenue includes revenue from client support including software upgrades, on a when and-if • Cloud revenue is derived from sales of the Company’s hosted Pega Platform and software application environments. • Consulting revenue is primarily related to new license implementations. Contracts with multiple performance obligations The Company’s license and cloud arrangements often contain multiple performance obligations, including maintenance, consulting, and training. For contracts with multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price basis. If the transaction price contains discounts or expects to provide a future price concession, these elements are considered when determining the transaction price prior to allocation. Variable fees within the transaction price will be estimated and recognized in revenue as the Company satisfies its performance obligations to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable fee is resolved. If the contract grants the client the option to acquire additional products or services, the Company assesses whether or not any discount on the products and services is in excess of levels normally available to similar clients and, if so, accounts for that discount as an additional performance obligation. Software licenses The Company has concluded that its software licenses are distinct performance obligations as the client can benefit from the software on its own. Software license revenue is typically recognized at a point in time when control is transferred to the client, which is defined as the point in time when the client can use and benefit from the license. The software license is delivered before related services are provided and is functional without services, updates, and technical support. The Company’s license arrangements generally contain multiple performance obligations, including consulting, training, and maintenance. Stand-alone selling price for software licenses is determined using the residual approach. The Company utilizes the residual approach as license performance obligations are sold for a broad range of amounts (the selling price is highly variable) and a stand-alone selling price is not discernible from past transactions or other observable evidence. Periodically, the Company evaluates whether the residual approach is appropriate for its license and cloud performance obligations when sold with other performance obligations. As a result, if the standalone selling price analysis illustrates that the license and cloud performance obligations are no longer highly variable, the Company will utilize the relative allocation method for such arrangements. Term license fees are usually payable in advance on a monthly, quarterly, or annual basis over the term of the license agreement, which is typically three to five years and may be renewed for additional terms at the client’s option. Perpetual license fees are usually payable when the contract is executed. The Company recognizes software license revenue when control is transferred, and the corresponding difference between the amount invoiced and recognized as revenue is recorded as unbilled receivables, as the payment of consideration is subject only to the passage of time. Maintenance Maintenance revenue includes revenue from client support and related professional services. Client support includes software upgrades on a when and-if The Company has identified two separate distinct performance obligations of maintenance: 1. software upgrades and updates; and 2. technical support. These performance obligations are distinct within the contract and, although they are not sold separately, the components are not essential to the functionality of the other components. Each of the performance obligations included in maintenance revenue is a stand-alone obligation that is recognized over the passage of the contractual term, which is typically one year. Maintenance fees are usually payable in advance on a monthly, quarterly, or annual basis over the term of the agreement. Services The Company’s services revenue is comprised of consulting and training, including software license implementations, training, reimbursable expenses, and cloud which is derived from sales of the Company’s hosted Pega Platform and software application environments. The Company has concluded that most services are distinct performance obligations. Consulting may be provided on a stand-alone basis or bundled with license and software maintenance services. The stand-alone selling price for consulting in time and materials contracts is determined by observable prices in similar transactions without multiple performance obligations and recognized as revenue as the services are performed. Fees for time and materials consulting contracts are usually payable shortly after the service is provided. The Company estimates the stand-alone selling price for fixed price services based on the estimated hours versus actual hours in similar geographies and for similar contract sizes. Revenue for fixed price services is recognized over time as the services are provided. Fees for fixed price services consulting contracts are usually payable as contract milestones are achieved. The stand-alone selling price of cloud sales of production environments is determined based on the residual approach when sold with services and is recognized over the term of the service. The Company utilizes the residual approach as cloud performance obligations are sold for a broad range of amounts (the selling price is highly variable) and a stand-alone selling price is not discernible from past transactions or other observable evidence. The stand-alone selling price for cloud sales of development and testing environments is developed using observable prices in similar transactions without multiple performance obligations and is recognized over time over the term of the service. Cloud fees are usually payable in advance on a monthly, quarterly, or annual basis over the term of the service. Contract modifications The Company sometimes enters into amendments to previously executed contracts which constitute contract modifications. The Company assesses each of these contract modifications to determine: 1. If the additional products and services are distinct from the products and services in the original arrangement, and 2. If the amount of consideration expected for the added products and services reflects the stand-alone selling price of those products and services. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract and is accounted for on either: 1. a prospective basis as a termination of the existing contract and the creation of a new contract; or 2. a cumulative catch-up Geographic revenue Three Months Ended March 31, (in thousands) 2018 2017 U.S. $ 113,985 48% $ 169,662 67% Other Americas 17,715 8% 10,406 4% United Kingdom 26,094 11% 26,342 10% Europe, Middle East, and Africa excluding the United Kingdom 31,826 14% 24,211 9% Asia-Pacific 45,562 19% 25,688 10% Total Revenue $ 235,182 100% $ 256,309 100% Major products and services Three Months Ended March 31, (in thousands) 2018 2017 Perpetual license $ 23,078 $ 37,899 Term license 64,695 89,109 Performance obligations transferred at a point in time 87,773 127,008 Maintenance 64,525 58,713 Cloud 15,582 10,402 Consulting and training 67,302 60,186 Performance obligations transferred over time 147,409 129,301 Total Revenue $ 235,182 $ 256,309 During the three months ended March 31, 2018 and 2017, there were no material changes in the Company’s estimate of variable fees. The amount of revenue recognized from performance obligations satisfied in prior periods was not material. Transaction price allocated to remaining performance obligations Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized. Transaction price on remaining performance obligations was $291 million as of March 31, 2018, of which the Company expects to recognize $198.3 million prior to January 1, 2020. These amounts do not include contracts that have an original expected duration of one year or less. For reporting periods ending prior to January 1, 2018, the date of initial adoption of ASC 606, the Company has elected the practical expedient and not compiled and disclosed the amount of the transaction price allocated to the remaining performance obligations. Major clients Clients accounting for 10% or more of the Company’s total revenue were as follows: Three Months Ended March 31, (in thousands) 2018 2017 Total revenue $ 235,182 $ 256,309 Client A * 14% Client B * 11% *Client accounted for less than 10% of total revenue. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2018 | |
STOCK-BASED COMPENSATION | 10. STOCK-BASED COMPENSATION Expense Three Months Ended March 31, (in thousands) 2018 2017 Cost of revenues $ 3,701 $ 3,622 Selling and marketing 4,658 3,405 Research and development 3,637 3,312 General and administrative 3,113 2,169 $ 15,109 $ 12,508 Income tax benefit $ (3,141) $ (3,815) The Company recognizes stock-based compensation on the accelerated recognition method, treating each vesting tranche as if it were an individual grant. As of March 31, 2018, the Company had, net of estimated forfeitures, $92.5 million of unrecognized stock-based compensation expense, related to all unvested restricted stock units (“RSUs”) and stock options, which was expected to be recognized over a weighted-average period of 2.3 years. Grants The Company granted the following stock-based compensation awards: Three Months Ended March 31, (in thousands) Shares Total Fair Value RSUs (1) 858 $ 49,600 Non-qualified 1,377 $ 24,700 (1) Includes approximately 0.1 million RSUs which were granted in connection with the election by certain employees to receive 50% of their 2018 target incentive compensation under the Company’s Corporate Incentive Compensation Plan in the form of RSUs instead of cash. Stock-based compensation of approximately $8.2 million associated with this RSU grant is expected to be recognized over a one-year RSU vestings and stock option exercises During the three months ended March 31, 2018, 0.6 million shares of common stock were issued due to stock option exercises and RSU vestings under the Company’s stock-based compensation plans. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
INCOME TAXES | 11. INCOME TAXES Effective Tax Rate The Company computes its (benefit)/provision for income taxes by applying the estimated annual effective tax rate to year to date income before (benefit)/provision for income taxes and adjusts for discrete tax items recorded in the period. Three Months Ended March 31, (Dollars in thousands) 2018 2017 (Benefit)/provision for income taxes $ (4,222) $ 13,615 Effective income tax rate (53)% 20% During the three months ended March 31, 2018, the Company’s effective tax rate changed primarily due to the following factors: • excess tax benefits from stock-based compensation were disproportionately greater relative to income before (benefit)/provision for income taxes; • a decrease in the estimated annual effective income tax rate primarily due to the reduction of the U.S. statutory federal tax rate from 35% to 21% pursuant to the Tax Reform Act; and • an increase in U.S. research and development tax credits. Tax Reform Act On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Reform Act”) was enacted into law, which significantly changed U.S. tax law and included many provisions such as a reduction of the U.S. federal statutory tax rate, imposed a one-time low-taxed Under the SEC Staff Accounting Bulletin No. 118 (“SAB 118”), the Company recognized the provisional tax impacts in the three months ended December 31, 2017 that included $20.4 million of income tax expense to re-measure The final amounts may differ from those provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Reform Act. The Tax Reform Act also provided for a one-time one-time The Tax Reform Act provides the following new anti-abuse provisions beginning in 2018: • The GILTI provisions require the Company to include in its U.S. income tax base foreign subsidiary earnings in excess of an allowable return on 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 2018. As of March 31, 2018, the Company has included an estimate of the effect of its GILTI provisions in its estimated annual effective tax rate. The Company continues to monitor IRS guidance and will update its estimates as guidance is issued. • The BEAT provisions in the Tax Reform Act impose an alternative minimum tax on taxpayers with substantial base-erosion payments. The Company’s preliminary assessment is that the Company will not be subject to the BEAT in 2018. The Company continues to monitor IRS guidance and will update its estimates as guidance is issued. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
EARNINGS PER SHARE | 12. EARNINGS PER SHARE Basic earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period, plus the dilutive effect of outstanding stock options and RSUs, using the treasury stock method. In periods of loss, all stock options and RSUs are excluded, as their inclusion would be anti-dilutive. The calculation of the basic and diluted earnings per share is as follows: Three Months Ended (in thousands, except per share amounts) 2018 2017 Basic Net income $ 12,200 $ 52,963 Weighted-average common shares outstanding 78,236 76,761 Earnings per share, basic $ 0.16 $ 0.69 Diluted Net income $ 12,200 $ 52,963 Weighted-average effect of dilutive securities: Stock options 3,119 3,184 RSUs 1,747 1,930 Effect of dilutive securities 4,866 5,114 Weighted-average common shares outstanding, assuming dilution 83,102 81,875 Earnings per share, diluted $ 0.15 $ 0.65 Outstanding anti-dilutive stock options and RSUs (1) 397 314 (1) Certain outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the period presented. These awards may be dilutive in the future. |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Impact of Adoption of ASU 606 | The impact of the adoption ASC 606 and ASC 340-40 December 31, 2017 (in thousands) Previously reported Adjustments As adjusted Accounts receivable and unbilled receivables $ 248,331 $ 133,302 $ 381,633 Contract assets — 914 914 Long-term unbilled receivables — 160,708 160,708 Deferred income taxes 57,127 (42,887) 14,240 Deferred contract costs — 37,924 37,924 Other assets (1) 416,148 — 416,148 Total Assets 721,606 289,961 1,011,567 Deferred revenue 195,073 (28,776) 166,297 Long-term deferred revenue 6,591 (2,885) 3,706 Deferred income tax liabilities — 38,463 38,463 Other liabilities (2) 148,864 — 148,864 Total liabilities 350,528 6,802 357,330 Foreign currency translation adjustments (3,494) (2,966) (6,460) Retained earnings 221,926 286,125 508,051 Other equity (3) 152,646 — 152,646 Total stockholders’ equity 371,078 283,159 654,237 Total liabilities and stockholders’ equity $ 721,606 $ 289,961 $ 1,011,567 (1) Includes cash and cash equivalents, marketable securities, income taxes receivable, other current assets, property and equipment, intangible assets, goodwill, and other long-term assets (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K (2) Includes accounts payable, accrued expenses, accrued compensation and related expenses, income taxes payable, and other long-term liabilities (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K (3) Includes common stock, additional paid-in available-for-sale 10-K Three Months Ended March 31, 2017 (in thousands, except per share amounts) Previously reported Adjustments As adjusted Revenue: Software license $ 92,390 $ 34,618 $ 127,008 Maintenance 58,965 (252) 58,713 Services 71,892 (1,304) 70,588 Total revenue 223,247 33,062 256,309 Cost of revenue: Software license 1,300 — 1,300 Maintenance 7,218 — 7,218 Services 59,572 — 59,572 Total cost of revenue 68,090 — 68,090 Gross profit 155,157 33,062 188,219 Operating expenses: Selling and marketing 71,288 (1,607 ) 69,681 Research and development 40,296 — 40,296 General and administrative 12,335 — 12,335 Total operating expenses 123,919 (1,607 ) 122,312 Income from operations 31,238 34,669 65,907 Foreign currency transaction gain 676 69 745 Interest income, net 165 40 205 Other expense, net (279) — (279) Income before provision for income taxes 31,800 34,778 66,578 Provision for income taxes 4,779 8,836 13,615 Net income $ 27,021 $ 25,942 $ 52,963 Earnings per share: Basic $ 0.35 $ 0.69 Diluted $ 0.33 $ 0.65 Weighted-average number of common shares outstanding: Basic 76,761 76,761 Diluted 81,875 81,875 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Marketable Securities | March 31, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 50,782 $ — $ (191) $ 50,591 Corporate bonds 38,761 1 (306) 38,456 $ 89,543 $ 1 $ (497) $ 89,047 December 31, 2017 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 32,996 $ — $ (148) $ 32,848 Corporate bonds 28,757 1 (137) 28,621 $ 61,753 $ 1 $ (285) $ 61,469 |
RECEIVABLES, CONTRACT ASSETS,21
RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Receivable | Receivables (in thousands) March 31, 2018 December 31, 2017 Accounts receivable $ 164,981 $ 222,735 Unbilled receivables 153,657 158,898 Long-term unbilled receivables 180,077 160,708 Total receivables $ 498,715 $ 542,341 |
Summary of long-term unbilled receivables | Long-term unbilled receivables are expected to be billed as follows: (in thousands) March 31, 2018 2019 $ 82,518 2020 58,433 2021 31,129 2022 and thereafter 7,997 $ 180,077 |
Summary of Contract Assets and Deferred Revenue | Contract assets and deferred revenue (in thousands) March 31, 2018 December 31, 2017 Contract assets (1) $ 788 $ 914 Deferred revenue 175,586 166,297 Long-term deferred revenue (2) $ 3,277 $ 3,706 (1) (2) |
DEFERRED CONTRACT COSTS (Tables
DEFERRED CONTRACT COSTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Impairment of Deferred Contract Costs | During the three months ended March 31, 2018 and 2017, impairment of deferred contract costs was not material. (in thousands) March 31, 2018 December 31, 2017 Deferred contract costs (1) $ 39,781 $ 37,924 (1) |
Schedule of amortization of deferred contract costs | Amortization of deferred contract costs was as follows: Three Months Ended March 31, (in thousands) 2018 2017 Amortization of deferred contract costs (1) $3,789 $2,594 (1) |
GOODWILL AND OTHER INTANGIBLE23
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows: (in thousands) Three Months Ended March 31, 2018 Balance as of January 1, $ 72,952 Purchase price adjustments to goodwill — Currency translation adjustments 65 Balance as of March 31, $ 73,017 |
Schedule of Amortizable Intangible Assets | Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives as follows: March 31, 2018 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 9-10 years $ 63,197 $ (46,456) $ 16,741 Technology 7-10 58,942 (46,603) 12,339 Other intangibles — 5,361 (5,361) — $ 127,500 $ (98,420) $ 29,080 (1) December 31, 2017 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 9-10 years $ 63,164 $ (44,835) $ 18,329 Technology 7-10 58,942 (45,372) 13,570 Other intangibles — 5,361 (5,361) — $ 127,467 $ (95,568) $ 31,899 (1) Included in other long-term assets in the unaudited condensed consolidated balance sheets. |
Amortization of Intangibles Assets | Amortization of intangibles assets is reflected in the Company’s unaudited condensed consolidated statements of operations as follows: Three Months Ended (in thousands) 2018 2017 Cost of revenue $ 1,232 $ 1,334 Selling and marketing 1,605 1,866 $ 2,837 $ 3,200 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Accrued Expenses | (in thousands) March 31, 2018 December 31, 2017 Outside professional services $ 15,152 $ 14,468 Income and other taxes 7,272 7,420 Marketing and sales program expenses 8,724 6,444 Dividends payable 2,358 2,344 Employee-related expenses 5,091 4,065 Other 9,681 10,767 $ 48,278 $ 45,508 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Assets and Liabilities Measured at Fair Value | The Company’s assets and liabilities measured at fair value on a recurring basis were as follows: March 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ 130 $ 30,072 $ — $ 30,202 Marketable securities: Municipal bonds $ — $ 50,591 $ — $ 50,591 Corporate bonds — 38,456 — 38,456 Total marketable securities $ — $ 89,047 $ — $ 89,047 Investments in privately-held companies (1) $ — $ — $ 2,060 $ 2,060 (1) December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 2,720 $ 40,051 $ — $ 42,771 Marketable securities: Municipal bonds $ — $ 32,848 $ — $ 32,848 Corporate bonds — 28,621 — 28,621 Total marketable securities $ — $ 61,469 $ — $ 61,469 Investments in privately-held companies (1) $ — $ — $ 1,030 $ 1,030 (1) |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disaggregation of Revenue | Geographic revenue Three Months Ended March 31, (in thousands) 2018 2017 U.S. $ 113,985 48% $ 169,662 67% Other Americas 17,715 8% 10,406 4% United Kingdom 26,094 11% 26,342 10% Europe, Middle East, and Africa excluding the United Kingdom 31,826 14% 24,211 9% Asia-Pacific 45,562 19% 25,688 10% Total Revenue $ 235,182 100% $ 256,309 100% Major products and services Three Months Ended March 31, (in thousands) 2018 2017 Perpetual license $ 23,078 $ 37,899 Term license 64,695 89,109 Performance obligations transferred at a point in time 87,773 127,008 Maintenance 64,525 58,713 Cloud 15,582 10,402 Consulting and training 67,302 60,186 Performance obligations transferred over time 147,409 129,301 Total Revenue $ 235,182 $ 256,309 |
Total Revenue of Major Clients | Clients accounting for 10% or more of the Company’s total revenue were as follows: Three Months Ended March 31, (in thousands) 2018 2017 Total revenue $ 235,182 $ 256,309 Client A * 14% Client B * 11% *Client accounted for less than 10% of total revenue. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Stock Based Compensation Expense | Expense Three Months Ended March 31, (in thousands) 2018 2017 Cost of revenues $ 3,701 $ 3,622 Selling and marketing 4,658 3,405 Research and development 3,637 3,312 General and administrative 3,113 2,169 $ 15,109 $ 12,508 Income tax benefit $ (3,141) $ (3,815) |
Summary of stock based compensation award granted | Grants The Company granted the following stock-based compensation awards: Three Months Ended March 31, (in thousands) Shares Total Fair Value RSUs (1) 858 $ 49,600 Non-qualified 1,377 $ 24,700 (1) Includes approximately 0.1 million RSUs which were granted in connection with the election by certain employees to receive 50% of their 2018 target incentive compensation under the Company’s Corporate Incentive Compensation Plan in the form of RSUs instead of cash. Stock-based compensation of approximately $8.2 million associated with this RSU grant is expected to be recognized over a one-year |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of (Benefit)/Provision for Income Taxes and Discrete Tax Items | The Company computes its (benefit)/provision for income taxes by applying the estimated annual effective tax rate to year to date income before (benefit)/provision for income taxes and adjusts for discrete tax items recorded in the period. Three Months Ended March 31, (Dollars in thousands) 2018 2017 (Benefit)/provision for income taxes $ (4,222) $ 13,615 Effective income tax rate (53)% 20% |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Basic and Diluted Earnings Per Share | The calculation of the basic and diluted earnings per share is as follows: Three Months Ended (in thousands, except per share amounts) 2018 2017 Basic Net income $ 12,200 $ 52,963 Weighted-average common shares outstanding 78,236 76,761 Earnings per share, basic $ 0.16 $ 0.69 Diluted Net income $ 12,200 $ 52,963 Weighted-average effect of dilutive securities: Stock options 3,119 3,184 RSUs 1,747 1,930 Effect of dilutive securities 4,866 5,114 Weighted-average common shares outstanding, assuming dilution 83,102 81,875 Earnings per share, diluted $ 0.15 $ 0.65 Outstanding anti-dilutive stock options and RSUs (1) 397 314 (1) Certain outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the period presented. These awards may be dilutive in the future. |
Summary of Impact of Adoption o
Summary of Impact of Adoption of ASU 606 (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accounts receivable and unbilled receivables | $ 381,633 | |||||
Contract assets | [1] | $ 788 | 914 | |||
Long-term unbilled receivables | 180,077 | 160,708 | [2] | |||
Deferred income taxes | 14,240 | |||||
Deferred contract costs | 37,924 | |||||
Other assets | [3] | 416,148 | ||||
Total assets | 1,005,955 | 1,011,567 | [2] | |||
Deferred revenue | 175,586 | 166,297 | [2] | |||
Long-term deferred revenue | [4] | 3,277 | 3,706 | |||
Deferred income tax liabilities | 39,932 | 38,463 | [2] | |||
Other liabilities | [5] | 148,864 | ||||
Total liabilities | 343,832 | 357,330 | [2] | |||
Foreign currency translation adjustments | (6,460) | |||||
Retained earnings | 517,893 | 508,051 | [2] | |||
Other equity | [6] | 152,646 | ||||
Total stockholders' equity | 662,123 | 654,237 | [2] | |||
Total liabilities and stockholders' equity | 1,005,955 | 1,011,567 | [2] | |||
Revenue: | ||||||
Software license | 87,773 | $ 127,008 | [7] | |||
Maintenance | 64,525 | 58,713 | [7] | |||
Services | 82,884 | 70,588 | [7] | |||
Total revenue | 235,182 | 256,309 | [7] | |||
Cost of revenue: | ||||||
Software license | 1,255 | 1,300 | [7] | |||
Maintenance | 6,082 | 7,218 | [7] | |||
Services | 68,277 | 59,572 | [7] | |||
Total cost of revenue | 75,614 | 68,090 | [7] | |||
Gross profit | 159,568 | 188,219 | [7] | |||
Operating expenses: | ||||||
Selling and marketing | 88,383 | 69,681 | [7] | |||
Research and development | 46,785 | 40,296 | [7] | |||
General and administrative | 16,464 | 12,335 | [7] | |||
Total operating expenses | 151,632 | 122,312 | [7] | |||
Income from operations | 7,936 | 65,907 | [7] | |||
Foreign currency transaction gain | (1,085) | 745 | [7] | |||
Interest income, net | 764 | 205 | [7] | |||
Other expense, net | 363 | (279) | [7] | |||
Income before provision for income taxes | 7,978 | 66,578 | [7] | |||
Provision for income taxes | (4,222) | 13,615 | [7] | |||
Net income | $ 12,200 | $ 52,963 | [7] | |||
Earnings per share: | ||||||
Basic | $ 0.16 | $ 0.69 | [7] | |||
Diluted | $ 0.15 | $ 0.65 | [7] | |||
Weighted-average number of common shares outstanding: | ||||||
Basic | 78,236 | 76,761 | [7] | |||
Diluted | 83,102 | 81,875 | [7] | |||
Previously Reported | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accounts receivable and unbilled receivables | 248,331 | |||||
Deferred income taxes | 57,127 | |||||
Other assets | [3] | 416,148 | ||||
Total assets | 721,606 | |||||
Deferred revenue | 195,073 | |||||
Long-term deferred revenue | 6,591 | |||||
Other liabilities | [5] | 148,864 | ||||
Total liabilities | 350,528 | |||||
Foreign currency translation adjustments | (3,494) | |||||
Retained earnings | 221,926 | |||||
Other equity | [6] | 152,646 | ||||
Total stockholders' equity | 371,078 | |||||
Total liabilities and stockholders' equity | 721,606 | |||||
Revenue: | ||||||
Software license | $ 92,390 | |||||
Maintenance | 58,965 | |||||
Services | 71,892 | |||||
Total revenue | 223,247 | |||||
Cost of revenue: | ||||||
Software license | 1,300 | |||||
Maintenance | 7,218 | |||||
Services | 59,572 | |||||
Total cost of revenue | 68,090 | |||||
Gross profit | 155,157 | |||||
Operating expenses: | ||||||
Selling and marketing | 71,288 | |||||
Research and development | 40,296 | |||||
General and administrative | 12,335 | |||||
Total operating expenses | 123,919 | |||||
Income from operations | 31,238 | |||||
Foreign currency transaction gain | 676 | |||||
Interest income, net | 165 | |||||
Other expense, net | (279) | |||||
Income before provision for income taxes | 31,800 | |||||
Provision for income taxes | 4,779 | |||||
Net income | $ 27,021 | |||||
Earnings per share: | ||||||
Basic | $ 0.35 | |||||
Diluted | $ 0.33 | |||||
Weighted-average number of common shares outstanding: | ||||||
Basic | 76,761 | |||||
Diluted | 81,875 | |||||
Adjustments | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accounts receivable and unbilled receivables | 133,302 | |||||
Contract assets | 914 | |||||
Long-term unbilled receivables | 160,708 | |||||
Deferred income taxes | (42,887) | |||||
Deferred contract costs | 37,924 | |||||
Total assets | 289,961 | |||||
Deferred revenue | (28,776) | |||||
Long-term deferred revenue | (2,885) | |||||
Deferred income tax liabilities | 38,463 | |||||
Total liabilities | 6,802 | |||||
Foreign currency translation adjustments | (2,966) | |||||
Retained earnings | 286,125 | |||||
Total stockholders' equity | 283,159 | |||||
Total liabilities and stockholders' equity | $ 289,961 | |||||
Revenue: | ||||||
Software license | $ 34,618 | |||||
Maintenance | (252) | |||||
Services | (1,304) | |||||
Total revenue | 33,062 | |||||
Cost of revenue: | ||||||
Gross profit | 33,062 | |||||
Operating expenses: | ||||||
Selling and marketing | (1,607) | |||||
Total operating expenses | (1,607) | |||||
Income from operations | 34,669 | |||||
Foreign currency transaction gain | 69 | |||||
Interest income, net | 40 | |||||
Income before provision for income taxes | 34,778 | |||||
Provision for income taxes | 8,836 | |||||
Net income | $ 25,942 | |||||
[1] | Included in other current assets in the unaudited condensed consolidated balance sheets. | |||||
[2] | The Company adopted the new revenue recognition standard ("ASC 606") on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. | |||||
[3] | Includes cash and cash equivalents, marketable securities, income taxes receivable, other current assets, property and equipment, intangible assets, goodwill, and other long-term assets (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K for the year ended December 31, 2017). | |||||
[4] | Included in other long-term liabilities in the unaudited condensed consolidated balance sheets. | |||||
[5] | Includes accounts payable, accrued expenses, accrued compensation and related expenses, income taxes payable, and other long-term liabilities (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K for the year ended December 31, 2017). | |||||
[6] | Includes common stock, additional paid-in capital, and net unrealized loss on available-for-sale marketable securities (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K for the year ended December 31, 2017). | |||||
[7] | The Company adopted ASC 606 on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
Schedule of Marketable Securiti
Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 89,543 | $ 61,753 | |
Unrealized Gains | 1 | 1 | |
Unrealized Losses | (497) | (285) | |
Fair Value | 89,047 | 61,469 | [1] |
Municipal bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 50,782 | 32,996 | |
Unrealized Losses | (191) | (148) | |
Fair Value | 50,591 | 32,848 | |
Corporate bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 38,761 | 28,757 | |
Unrealized Gains | 1 | 1 | |
Unrealized Losses | (306) | (137) | |
Fair Value | $ 38,456 | $ 28,621 | |
[1] | The Company adopted the new revenue recognition standard ("ASC 606") on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | |
Weighted-average remaining maturity period of marketable debt securities, months | 1 year 4 months 24 days |
Minimum | |
Schedule of Available-for-sale Securities [Line Items] | |
Remaining maturities of marketable debt securities | 2018-05 |
Maximum | |
Schedule of Available-for-sale Securities [Line Items] | |
Remaining maturities of marketable debt securities | 2021-02 |
Summary of Receivable (Detail)
Summary of Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable and Unbilled Receivable [Line Items] | |||
Accounts receivable | $ 164,981 | $ 222,735 | [1] |
Unbilled receivables | 153,657 | 158,898 | [1] |
Long-term unbilled receivables | 180,077 | 160,708 | [1] |
Total receivables | $ 498,715 | $ 542,341 | |
[1] | The Company adopted the new revenue recognition standard ("ASC 606") on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
Summary of Long-Term Unbilled R
Summary of Long-Term Unbilled Receivables (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | [1] |
Accounts Receivable and Unbilled Receivable [Line Items] | |||
2,019 | $ 82,518 | ||
2,020 | 58,433 | ||
2,021 | 31,129 | ||
2022 and thereafter | 7,997 | ||
Total | $ 180,077 | $ 160,708 | |
[1] | The Company adopted the new revenue recognition standard ("ASC 606") on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
Summary of Contract Assets and
Summary of Contract Assets and Deferred Revenue (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | ||
Accounts Receivable Net [Line Items] | ||||
Contract assets | [1] | $ 788 | $ 914 | |
Deferred revenue | 175,586 | 166,297 | [2] | |
Long-term deferred revenue | [3] | $ 3,277 | $ 3,706 | |
[1] | Included in other current assets in the unaudited condensed consolidated balance sheets. | |||
[2] | The Company adopted the new revenue recognition standard ("ASC 606") on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. | |||
[3] | Included in other long-term liabilities in the unaudited condensed consolidated balance sheets. |
Receivables, Contract Assets,36
Receivables, Contract Assets, and Deferred Revenue - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($) | Dec. 31, 2017 | |
Accounts Receivable Net [Line Items] | ||
Deferred Revenue | $ 101.6 | |
Receivables | ||
Accounts Receivable Net [Line Items] | ||
Number Of clients | 0 | 0 |
Credit Concentration Risk | Receivables | Minimum | ||
Accounts Receivable Net [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
Deferred Contract Costs - Addit
Deferred Contract Costs - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Amortized period | 5 years |
Maximum | Accounting Standards Update 2014-09 | |
Amortized period | 1 year |
Schedule of Impairment of Defer
Schedule of Impairment of Deferred Contract Costs (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Deferred Financing Cost [Line Items] | |||
Deferred contract costs | [1] | $ 39,781 | $ 37,924 |
[1] | Included in other long-term assets in the unaudited condensed consolidated balance sheets. |
Schedule of Amortization of Def
Schedule of Amortization of Deferred Contract Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Deferred Financing Cost [Line Items] | |||
Amortization of deferred contract costs | [1] | $ 3,789 | $ 2,594 |
[1] | Included in selling and marketing expenses in the unaudited condensed consolidated statement of operations. |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($) | ||
Goodwill [Line Items] | ||
Balance as of January 1, | $ 72,952 | [1] |
Purchase price adjustments to goodwill | 0 | |
Currency translation adjustments | 65 | |
Balance as of March 31, | $ 73,017 | |
[1] | The Company adopted the new revenue recognition standard ("ASC 606") on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
Schedule of Amortizable Intangi
Schedule of Amortizable Intangible Asset (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Goodwill and Other Intangible Assets [Line Items] | |||
Cost | $ 127,500 | $ 127,467 | |
Accumulated Amortization | (98,420) | (95,568) | |
Net Book Value | [1] | 29,080 | 31,899 |
Client related intangibles | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Cost | 63,197 | 63,164 | |
Accumulated Amortization | (46,456) | (44,835) | |
Net Book Value | [1] | 16,741 | 18,329 |
Technology | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Cost | 58,942 | 58,942 | |
Accumulated Amortization | (46,603) | (45,372) | |
Net Book Value | [1] | 12,339 | 13,570 |
Other intangibles | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Cost | 5,361 | 5,361 | |
Accumulated Amortization | $ (5,361) | $ (5,361) | |
Minimum | Client related intangibles | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Useful Lives | 9 years | 9 years | |
Minimum | Technology | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Useful Lives | 7 years | 7 years | |
Maximum | Client related intangibles | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Useful Lives | 10 years | 10 years | |
Maximum | Technology | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Useful Lives | 10 years | 10 years | |
[1] | Included in other long-term assets in the unaudited condensed consolidated balance sheets. |
Amortization of Intangibles Ass
Amortization of Intangibles Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total amortization expense | $ 2,837 | $ 3,200 |
Cost of revenue | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total amortization expense | 1,232 | 1,334 |
Selling and marketing | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total amortization expense | $ 1,605 | $ 1,866 |
Schedule of Accrued Expenses (D
Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Accrued Liabilities [Line Items] | |||
Outside professional services | $ 15,152 | $ 14,468 | |
Income and other taxes | 7,272 | 7,420 | |
Marketing and sales program expenses | 8,724 | 6,444 | |
Dividends payable | 2,358 | 2,344 | |
Employee-related expenses | 5,091 | 4,065 | |
Other | 9,681 | 10,767 | |
Total accrued expenses | $ 48,278 | $ 45,508 | [1] |
[1] | The Company adopted the new revenue recognition standard ("ASC 606") on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amount of transfers between Levels | $ 0 | |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairments recognized on assets | $ 0 | $ 0 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assets | |||
Cash equivalents | $ 30,202 | $ 42,771 | |
Total marketable securities | 89,047 | 61,469 | |
Municipal bonds | |||
Fair Value Assets | |||
Total marketable securities | 50,591 | 32,848 | |
Corporate bonds | |||
Fair Value Assets | |||
Total marketable securities | 38,456 | 28,621 | |
Investments in Privately-Held Companies | |||
Fair Value Assets | |||
Investments in privately-held companies | [1] | 2,060 | 1,030 |
Level 1 | |||
Fair Value Assets | |||
Cash equivalents | 130 | 2,720 | |
Level 2 | |||
Fair Value Assets | |||
Cash equivalents | 30,072 | 40,051 | |
Total marketable securities | 89,047 | 61,469 | |
Level 2 | Municipal bonds | |||
Fair Value Assets | |||
Total marketable securities | 50,591 | 32,848 | |
Level 2 | Corporate bonds | |||
Fair Value Assets | |||
Total marketable securities | 38,456 | 28,621 | |
Level 3 | Investments in Privately-Held Companies | |||
Fair Value Assets | |||
Investments in privately-held companies | [1] | $ 2,060 | $ 1,030 |
[1] | Included in other long-term assets in the unaudited condensed consolidated balance sheets. |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2020 | Mar. 31, 2018 | Mar. 31, 2017 |
Revenues [Line Items] | |||
Transaction price, remaining performance obligation | $ 291 | ||
Total Revenue | |||
Revenues [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% | |
Minimum | Total Revenue | Credit Concentration Risk | |||
Revenues [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Software license | Minimum | |||
Revenues [Line Items] | |||
Term of Agreement | 3 years | ||
Software license | Maximum | |||
Revenues [Line Items] | |||
Term of Agreement | 5 years | ||
Software Service, Support and Maintenance Arrangement [Member] | |||
Revenues [Line Items] | |||
Term of Agreement | 1 year | ||
Scenario, Forecast | |||
Revenues [Line Items] | |||
Transaction price, remaining performance obligation, expected to be recognised | $ 198.3 |
Disaggregation of Revenue (Deta
Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | $ 235,182 | $ 256,309 | [1] |
Performance obligations transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | 87,773 | 127,008 | |
Performance obligations transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | 147,409 | 129,301 | |
Perpetual License | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | 23,078 | 37,899 | |
Term License | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | 64,695 | 89,109 | |
Maintenance | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | 64,525 | 58,713 | |
Cloud | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | 15,582 | 10,402 | |
Consulting and Training | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | 67,302 | 60,186 | |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | 113,985 | 169,662 | |
Other Americas | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | 17,715 | 10,406 | |
United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | 26,094 | 26,342 | |
Europe, Middle East and Africa excluding the United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | 31,826 | 24,211 | |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Net sales revenue | $ 45,562 | $ 25,688 | |
Total Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sale revenue net | 100.00% | 100.00% | |
Total Revenue | United States | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sale revenue net | 48.00% | 67.00% | |
Total Revenue | Other Americas | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sale revenue net | 8.00% | 4.00% | |
Total Revenue | United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sale revenue net | 11.00% | 10.00% | |
Total Revenue | Europe, Middle East and Africa excluding the United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sale revenue net | 14.00% | 9.00% | |
Total Revenue | Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sale revenue net | 19.00% | 10.00% | |
[1] | The Company adopted ASC 606 on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
Total Revenue of Major Clients
Total Revenue of Major Clients (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Revenue, Major Customer [Line Items] | ||||
Total revenue | $ 235,182 | $ 256,309 | [1] | |
Total Revenue | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | ||
Credit Concentration Risk | Total Revenue | Client A | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 0.00% | [2] | 14.00% | |
Credit Concentration Risk | Total Revenue | Client B | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 0.00% | [2] | 11.00% | |
[1] | The Company adopted ASC 606 on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. | |||
[2] | Client accounted for less than 10% of total revenue. |
Total Revenue of Major Client49
Total Revenue of Major Clients (Parenthetical) (Detail) - Total Revenue | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 100.00% | 100.00% | |
Credit Concentration Risk | Client A | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 0.00% | [1] | 14.00% |
Credit Concentration Risk | Client A | Maximum | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Credit Concentration Risk | Client B | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 0.00% | [1] | 11.00% |
Credit Concentration Risk | Client B | Maximum | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
[1] | Client accounted for less than 10% of total revenue. |
Summary of Stock Based Compensa
Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation before tax | $ 15,109 | $ 12,508 | [1] |
Income tax benefit | (3,141) | (3,815) | |
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation before tax | 3,701 | 3,622 | |
Selling and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation before tax | 4,658 | 3,405 | |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation before tax | 3,637 | 3,312 | |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation before tax | $ 3,113 | $ 2,169 | |
[1] | The Company adopted ASC 606 on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ | $ 92.5 |
Weighted-average period of recognition of unrecognized stock-based compensation expense (in years) | 2 years 3 months 19 days |
Shares issued | shares | 0.6 |
Stock-based compensation - Summ
Stock-based compensation - Summary of stock based compensation award granted (Detail) - Employees $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)shares | ||
RSUs | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Number of shares granted, RSUs | shares | 858 | [1] |
Fair value of shares granted | $ | $ 49,600 | [1] |
Nonqualified Stock Options | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Number of shares granted, options | shares | 1,377 | |
Fair value of shares granted | $ | $ 24,700 | |
[1] | Includes approximately 0.1 million RSUs which were granted in connection with the election by certain employees to receive 50% of their 2018 target incentive compensation under the Company's Corporate Incentive Compensation Plan in the form of RSUs instead of cash. Stock-based compensation of approximately $8.2 million associated with this RSU grant is expected to be recognized over a one-year period beginning on the grant date. |
Stock-based compensation - Su53
Stock-based compensation - Summary of stock based compensation award granted (Parenthetical) (Detail) - RSUs - Employees shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)shares | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
RSUs granted in connection with the 2016 CICP | shares | 0.1 |
Percentage of target incentive compensation eligible to be elected and received by employees in the form of RSUs | 50.00% |
Restricted stock compensation expense | $ | $ 8.2 |
Total stock-based compensation, period of recognition | 1 year |
Summary of (Benefit)_Provision
Summary of (Benefit)/Provision for Income Taxes and Discrete Tax Items (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Tax Rate Reconciliation [Line Items] | |||
(Benefit)/provision for income taxes | $ (4,222) | $ 13,615 | [1] |
Effective income tax rate | (53.00%) | 20.00% | |
[1] | The Company adopted ASC 606 on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | |
Effective Tax Rate Reconciling Items [Line Items] | |||
Statutory federal income tax rate | 21.00% | 35.00% | |
Tax Cuts and Jobs Act 2017, Incomplete accounting provisional income tax expense (benefit) | $ 20.4 | ||
Accounting Standards Update 2014-09 | |||
Effective Tax Rate Reconciling Items [Line Items] | |||
Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Deferred Tax Liability, Income Tax Benefit | $ 12.6 |
Summary of Basic and Diluted Ea
Summary of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Earning per share reconciliation | ||||
Net income | $ 12,200 | $ 52,963 | [1] | |
Weighted-average common shares outstanding | 78,236 | 76,761 | [1] | |
Earnings per share, basic | $ 0.16 | $ 0.69 | [1] | |
Net income | $ 12,200 | $ 52,963 | [1] | |
Effect of dilutive securities | 4,866 | 5,114 | ||
Weighted-average common shares outstanding, assuming dilution | 83,102 | 81,875 | [1] | |
Earnings per share, diluted | $ 0.15 | $ 0.65 | [1] | |
Outstanding anti-dilutive stock options and RSUs | [2] | 397 | 314 | |
Stock Options | ||||
Earning per share reconciliation | ||||
Weighted-average effect of dilutive securities | 3,119 | 3,184 | ||
RSUs | ||||
Earning per share reconciliation | ||||
Weighted-average effect of dilutive securities | 1,747 | 1,930 | ||
[1] | The Company adopted ASC 606 on January 1, 2018 and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information. | |||
[2] | Certain outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the period presented. These awards may be dilutive in the future. |