Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 08, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ultimate Software Group Inc | |
Entity Central Index Key | 1,016,125 | |
Current Fiscal Year End Date | --03-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,614,017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 143,639 | $ 155,685 |
Investments in marketable securities | 4,257 | 9,434 |
Accounts receivable, net of allowance for doubtful accounts of $1,100 for 2018 and $900 for 2017 | 192,477 | 190,989 |
Deferred contract costs, prepaid expenses and other current assets | 64,290 | 71,602 |
Total current assets before funds held for customers | 404,663 | 427,710 |
Funds held for customers | 1,210,419 | 563,062 |
Total current assets | 1,615,082 | 990,772 |
Property and equipment, net | 259,782 | 243,664 |
Goodwill | 35,613 | 35,808 |
Intangible assets, net | 20,034 | 20,862 |
Deferred contract costs and other assets, net | 104,582 | 53,409 |
Deferred tax assets, net | 22,429 | 32,696 |
Total assets | 2,057,522 | 1,377,211 |
Current liabilities: | ||
Accounts payable | 16,003 | 16,099 |
Accrued expenses and other liabilities | 65,280 | 60,394 |
Deferred revenue | 200,576 | 197,088 |
Capital lease obligations | 5,307 | 5,474 |
Total current liabilities before customer funds obligations | 287,166 | 279,055 |
Customer funds obligations | 1,212,055 | 564,031 |
Total current liabilities | 1,499,221 | 843,086 |
Deferred revenue | 1,650 | 1,773 |
Deferred rent | 9,162 | 5,349 |
Capital lease obligations | 3,981 | 4,477 |
Other long-term liabilities | 2,500 | 4,250 |
Deferred income tax liability | 361 | 251 |
Total liabilities | 1,516,875 | 859,186 |
Stockholders’ equity: | ||
Preferred Stock | 0 | 0 |
Common Stock, $.01 par value, 50,000,000 shares authorized, 35,259,958 and 34,787,986 shares issued as of March 31, 2018 and December 31, 2017, respectively | 353 | 348 |
Additional paid-in capital | 595,426 | 609,160 |
Accumulated other comprehensive loss | (6,613) | (5,912) |
Accumulated earnings | 162,840 | 125,788 |
Stockholders' equity before treasury stock | 752,006 | 729,384 |
Treasury stock, 4,657,995 shares, at cost, for 2018 and 2017 | (211,359) | (211,359) |
Total stockholders’ equity | 540,647 | 518,025 |
Total liabilities and stockholders’ equity | 2,057,522 | 1,377,211 |
Series A Junior Preferred Stock | ||
Stockholders’ equity: | ||
Preferred Stock | $ 0 | $ 0 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Allowance for doubtful accounts | $ 1,100 | $ 900 |
Stockholders’ equity: | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common Stock, shares issued (in shares) | 35,259,958 | 34,787,986 |
Treasury Stock, shares (in shares) | 4,657,995 | 4,657,995 |
Series A Junior Preferred Stock | ||
Stockholders’ equity: | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Recurring | $ 236,587 | $ 189,981 |
Services | 40,168 | 38,510 |
Total revenues | 276,755 | 228,491 |
Cost of revenues: | ||
Recurring | 62,865 | 50,069 |
Services | 41,908 | 39,631 |
Total cost of revenues | 104,773 | 89,700 |
Gross profit | 171,982 | 138,791 |
Operating expenses: | ||
Sales and marketing | 71,197 | 69,360 |
Research and development | 46,974 | 36,158 |
General and administrative | 31,722 | 30,204 |
Total operating expenses | 149,893 | 135,722 |
Operating income | 22,089 | 3,069 |
Other income (expense): | ||
Interest and other expense | (197) | (280) |
Other income, net | 385 | 226 |
Total other income (expense), net | 188 | (54) |
Income before income taxes | 22,277 | 3,015 |
(Provision) benefit for income taxes | (1,283) | 4,225 |
Net income | $ 20,994 | $ 7,240 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.69 | $ 0.25 |
Diluted (in dollars per share) | $ 0.67 | $ 0.24 |
Weighted average shares outstanding: | ||
Basic (in shares) | 30,404 | 29,538 |
Diluted (in shares) | 31,105 | 30,497 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 20,994 | $ 7,240 |
Other comprehensive (loss) income: | ||
Unrealized loss on investments in marketable available-for-sale securities | (322) | (230) |
Unrealized (loss) gain on foreign currency translation adjustments | (461) | 162 |
Other comprehensive loss, before tax | (783) | (68) |
Income tax benefit related to items of other comprehensive income | 90 | 92 |
Other comprehensive (loss) income, net of tax | (693) | 24 |
Comprehensive income | $ 20,301 | $ 7,264 |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 20,994 | $ 7,240 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,358 | 8,171 |
Provision for doubtful accounts | 2,815 | 2,293 |
Non-cash stock-based compensation expense | 33,197 | 33,866 |
Income taxes | 821 | (4,536) |
Net amortization of premiums and accretion of discounts on available-for-sale securities | (114) | 118 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,302) | (1,460) |
Deferred contract costs, prepaid expenses and other current assets | (15,006) | (4,875) |
Deferred contract costs and other assets | (3,914) | (1,766) |
Accounts payable | (96) | 5,427 |
Accrued expenses, other liabilities and deferred rent | 11,369 | (46) |
Deferred revenue | 1,455 | 1,893 |
Net cash provided by operating activities | 56,577 | 46,325 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (22,871) | (22,759) |
Purchases of marketable securities | (114,732) | (92,646) |
Proceeds from sales and maturities of marketable securities | 44,985 | 42,554 |
Net change in money market securities and other cash equivalents held to satisfy customer funds obligations | (572,640) | (399,403) |
Net cash used in investing activities | (665,258) | (472,254) |
Cash flows from financing activities: | ||
Net proceeds from issuances of Common Stock | 2,506 | 1,572 |
Shares acquired to settle employee tax withholding liabilities | (50,338) | (33,595) |
Principal payments on capital lease obligations | (1,576) | (1,535) |
Payments of other long-term liabilities | (1,750) | 0 |
Net change in customer funds obligations | 648,025 | 459,392 |
Net cash provided by financing activities | 596,867 | 425,834 |
Effect of exchange rate changes on cash | (232) | 87 |
Net decrease in cash and cash equivalents | (12,046) | (8) |
Cash and cash equivalents, beginning of period | 155,685 | 73,773 |
Cash and cash equivalents, end of period | 143,639 | 73,765 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 126 | 105 |
Cash paid for taxes | 1,718 | 383 |
Non-cash investing and financing activities: | ||
Capital lease obligations to acquire new equipment | 913 | 1,078 |
Stock based compensation for capitalized software | 1,034 | 1,021 |
Software agreement | $ 0 | $ 6,500 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations The Ultimate Software Group, Inc. and subsidiaries (“Ultimate,” “we,” “us” or “our”) is a leading provider of cloud-based human capital management solutions, often referred to as human capital management (“HCM”). Ultimate's UltiPro product suite (“UltiPro”) is a comprehensive, engaging solution that has human resources ("HR"), payroll, and benefits management at its core and includes global people management, available in 14 languages with more than 37 country-specific localizations. The solution is delivered via software-as-a-service ("SaaS"), now more commonly known as the cloud computing model, to organizations based in the United States and Canada, including those with global workforces. UltiPro is designed to deliver the functionality businesses need to manage the complete employment life cycle from recruitment to retirement. We market our UltiPro solutions primarily to enterprise companies, which we define as organizations with 2,501 or more employees, including those with 10,000 or more employees; mid-market companies, which we define as those having 501 - 2,500 employees; and strategic market companies, which we define as those having 100 - 500 employees. UltiPro is marketed primarily through our enterprise, mid-market and strategic direct sales teams. |
Basis of Presentation, Consolid
Basis of Presentation, Consolidation and the Use of Estimates | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Consolidation and the Use of Estimates | Basis of Presentation, Consolidation and the Use of Estimates The accompanying unaudited condensed consolidated financial statements of Ultimate have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The information in this quarterly report should be read in conjunction with Ultimate’s audited consolidated financial statements and notes thereto included in Ultimate’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 filed with the SEC on February 26, 2018 (the “Form 10-K”). The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in the opinion of Ultimate’s management, necessary for a fair presentation of the information for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results of operations for the three months ended March 31, 2018 are not necessarily indicative of operating results for the full fiscal year or for any future periods. The unaudited condensed consolidated financial statements reflect the financial position and operating results of Ultimate and include its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | Accounting Standards and Significant Accounting Policies Recently Adopted Accounting Standards In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“Topic 606”). Topic 606 supersedes the revenue requirements in ASU Topic 605, Revenue Recognition ("Topic 605") and requires the recognition of revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services and includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which discusses the deferral of incremental costs of obtaining a contract with a customer, including the period of amortization of such costs. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. Collectively, we refer to Topic 606 and Subtopic 340-40 as the "new standard." Effective January 1, 2018, we adopted the requirements of the new standard, utilizing the modified retrospective method of transition with the new standard applied to all customer contracts that were not completed on the effective date of the new standard. Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, as detailed below. The impact of adopting the new standard on our revenues resulted in an immaterial increase to deferred revenue and had a material impact on our unaudited condensed consolidated balance sheet, as a result of the amortization period over which deferred contract costs to obtain related subscription contracts are recognized. Under Topic 605, we deferred incremental commission costs to obtain a contract and amortized those costs over the initial term of the related subscription contract, which is generally 2 - 3 years. During our assessment of the new standard, we did not identify any incremental contract costs from what was capitalized under Topic 605. We analyzed our customer contract term periods and our customer life, taking into consideration technological changes for our UltiPro product offering, and based on our assessment of the new standard, we amortize the deferred contract costs over 7 years on a systematic basis, consistent with the pattern of transfer of the goods or services to which the asset relates. The cumulative effect of the changes made to our January 1, 2018 balance sheet for the adoption of the new standard were as follows (in thousands): Balance as of December 31, 2017 Adjustments Due to Adoption of Topic 606 Balance as of January 1, 2018 Assets Deferred contract costs, prepaid expenses and other current assets $ 71,602 $ (22,318 ) $ 49,284 Total current assets 990,772 (22,318 ) 968,454 Deferred contract costs and other assets, net 53,409 47,259 100,668 Deferred tax assets, net 32,696 (6,803 ) 25,893 Total assets $ 1,377,211 $ 18,138 $ 1,395,349 Liabilities Deferred revenue $ 197,088 $ 1,909 $ 198,997 Total current liabilities 843,086 1,909 844,995 Deferred income tax liability 251 170 422 Total liabilities 859,186 2,079 861,265 Stockholders' Equity Accumulated earnings 125,788 16,059 141,847 Total stockholders' equity 518,025 16,059 534,084 Total liabilities and stockholders' equity $ 1,377,211 $ 18,138 $ 1,395,349 In accordance with the requirements of the new standard, the disclosure for the quantitative effect and the significant changes between the reported results under the new standard and those that would have been reported under legacy GAAP (i.e., Topic 605) on our unaudited consolidated condensed income statement and balance sheet was as follows (in thousands): For the Three Months Ended March 31, 2018 As Reported - Topic 606 Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Income Statement Revenues Recurring revenues $ 236,587 $ 237,030 $ (443 ) Operating Expenses Sales and marketing 71,197 77,154 (5,957 ) Net income $ 20,994 $ 15,480 $ (5,514 ) As of March 31, 2018 As Reported - Topic 606 Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Balance Sheet Assets Deferred contract costs, prepaid expenses and other current assets $ 64,290 $ 76,219 $ (11,929 ) Deferred contract costs and other assets, net 104,582 51,692 52,890 Liabilities Deferred revenue 200,576 198,107 2,469 Stockholders' Equity Accumulated earnings $ 162,840 $ 124,348 $ (38,492 ) Summary of Significant Accounting Policies Except for the accounting policy for revenue recognition that was updated as a result of adopting Topic 606 , there have been no changes to our significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 26, 2018, that have had a material impact on our unaudited condensed consolidated financial statements and related notes. Revenue Recognition Effective January 1, 2018, we recognize revenues in accordance with Topic 606. The core principle of Topic 606 is that revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. To achieve the core principle of Topic 606, we perform the following steps: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) we satisfy a performance obligation. The significant majority of our two major revenue sources - recurring and services is derived from contracts with customers. Recurring revenues are primarily related to our subscription-based SaaS performance obligations. Services revenues are primarily related to implementation services for our SaaS customers (including activation services as well as post-live work typically billed on a time and materials basis) and, to a much lesser extent, fees for other services, including the provision of payroll-related forms, sales of time clocks and the printing of W-2 and Affordable Care Act ("ACA") forms for certain customers, as well as certain client reimbursable out-of-pocket expenses. Fees charged to subscription-based SaaS performance obligations are each priced on a per-employee-per-month (“PEPM”) basis for a given calendar month based on usage and fees charged for implementation services and are typically priced on a fixed fee basis for activating the product offering. A majority of our SaaS subscription revenues are satisfied over time, because they are simultaneously received and consumed by the customer, with certain SaaS performance obligations satisfied at a point in time. Our activation services revenues are satisfied over time because they are simultaneously received and consumed by the customer. Our SaaS performance obligations are each priced based on the number of active customer employees, as of the signing of the contract, at the contract PEPM rate over the initial contract term. Our activation services are based on a fixed fee charged to our customers. There is typically no variable consideration related to our SaaS performance obligations or our activation services, nor do they include a significant financing component, non-cash consideration, or consideration payable to a customer. Our SaaS performance obligations are typically billed quarterly in advance while our activation services are billed over the implementation period. Our SaaS arrangements include multiple performance obligations and transaction price allocations are based on the stand-alone selling price ("SSP") for each performance obligation. There is an observable input for SSP for each of the SaaS performance obligations. Since activation services do not have directly observable pricing, the SSP is estimated using market conditions and observable inputs, which is calculated based on historical average discounts off our standard price list. For our performance obligations, the consideration allocated to cloud subscription revenues is recognized as recurring revenues, typically using the output method, over the initial contract period, as those subscription-based services are consumed, typically commencing with the date the customer processes their first live payroll using UltiPro (referred to as going "Live"). The consideration allocated to activation services is recognized as services revenues based on the proportion performed, using reasonably dependable estimates (in relation to progression through activation phases), by product. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is effective for Ultimate on January 1, 2019 and early adoption is permitted. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. We have not yet determined the effect the standard will have on our ongoing financial reporting. |
Funds held for Customers, Corpo
Funds held for Customers, Corporate Investments in Marketable Securities and Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Investments in Marketable Securities and Fair Value of Financial Instruments [Abstract] | |
Funds held for Customers, Corporate Investments in Marketable Securities and Fair Value of Financial Instruments | Funds held for Customers, Corporate Investments in Marketable Securities and Fair Value of Financial Instruments We classify our investments in marketable securities with readily determinable fair values as available-for-sale. Available-for-sale securities consist of debt and equity securities not classified as trading securities or as securities to be held to maturity. Unrealized gains and losses, net of tax, on available-for-sale securities are reported as a net amount in accumulated other comprehensive income in stockholders’ equity until realized. Realized gains and losses resulting from available-for-sale securities are included in other income, net, in the unaudited condensed consolidated statements of income. There were no significant reclassifications of realized gains and losses on available-for-sale securities to the unaudited condensed consolidated statements of income for the three months ended March 31, 2018 and March 31, 2017 . Gains and losses on the sale of available-for-sale securities are determined using the specific identification method. There was $982 thousand and $704 thousand of net unrealized loss on available-for-sale securities as of March 31, 2018 and December 31, 2017 , respectively. The amortized cost, net unrealized loss and fair value of our funds held for customers and corporate investments in marketable available-for-sale securities as of March 31, 2018 and December 31, 2017 are shown below (in thousands): As of March 31, 2018 As of December 31, 2017 Amortized Cost Net Unrealized Gain/(Loss) Fair Value (1) Amortized Cost Net Unrealized (Loss)/Gain Fair Value (1) Type of issue: Funds held for customers – money market securities and other cash equivalents $ 926,952 $ — $ 926,952 $ 354,312 $ — $ 354,312 Available-for-sale securities: Corporate debentures – bonds 2,837 (4 ) 2,833 2,848 (4 ) 2,844 Commercial paper — — — — — — U.S. Agency bonds 284,444 (977 ) 283,467 209,443 (693 ) 208,750 U.S. Treasury bills 1,425 (1 ) 1,424 5,876 (6 ) 5,870 Asset-Backed securities — — — 721 (1 ) 720 Total corporate investments and funds held for customers $ 1,215,658 $ (982 ) $ 1,214,676 $ 573,200 $ (704 ) $ 572,496 _________________ (1) Included within available-for-sale securities as of March 31, 2018 and December 31, 2017 are corporate investments with fair values of $4.3 million and $9.4 million , respectively. Included within available-for-sale securities as of March 31, 2018 and December 31, 2017 are funds held for customers with fair values of $283.5 million and $208.8 million , respectively. All available-for-sale securities were included in Level 2 of the fair value hierarchy. The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of March 31, 2018 are as follows (in thousands): Securities in unrealized loss position less than 12 months Securities in unrealized loss position greater than 12 months Total Gross unrealized losses Fair market value Gross unrealized losses Fair market value Gross unrealized losses Fair market value Corporate debentures – bonds $ (2 ) $ 1,401 $ (2 ) $ 1,432 $ (4 ) $ 2,833 Commercial paper — — — — — — U.S. Agency bonds — — (977 ) 283,467 (977 ) 283,467 U.S. Treasury bills — — (1 ) 1,424 (1 ) 1,424 Asset-Backed securities — — — — — — Total $ (2 ) $ 1,401 $ (980 ) $ 286,323 $ (982 ) $ 287,724 The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2017 are as follows (in thousands): Securities in unrealized loss position less than 12 months Securities in unrealized loss position greater than 12 months Total Gross unrealized losses Fair market value Gross unrealized losses Fair market value Gross unrealized losses Fair market value Corporate debentures – bonds $ (1 ) $ 699 $ — $ — $ (1 ) $ 699 Commercial paper — — — — — — U.S. Agency bonds (408 ) 74,940 (285 ) 133,811 (693 ) 208,751 U.S. Treasury bills — — (6 ) 5,869 (6 ) 5,869 Asset-Backed securities — — — — — — Total $ (409 ) $ 75,639 $ (291 ) $ 139,680 $ (700 ) $ 215,319 The amortized cost and fair value of the marketable available-for-sale securities, by contractual maturity, as of March 31, 2018 , are shown below (in thousands): Corporate Investments Investments with Funds Held for Customers Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 4,261 $ 4,257 $ 223,941 $ 223,241 $ 228,202 $ 227,498 Due after one year — — 60,503 60,226 60,503 60,226 Total $ 4,261 $ 4,257 $ 284,444 $ 283,467 $ 288,705 $ 287,724 The amortized cost and fair value of the marketable available-for-sale securities, by contractual maturity, as of December 31, 2017 , are shown below (in thousands): Corporate Investments Investments with Funds Held for Customers Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 9,445 $ 9,434 $ 164,072 $ 163,641 $ 173,517 $ 173,075 Due after one year — 45,371 45,109 45,371 45,109 Total $ 9,445 $ 9,434 $ 209,443 $ 208,750 $ 218,888 $ 218,184 We classify and disclose fair value measurements in one of the following three categories of fair value hierarchy: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities. Level 2 - Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our assets that are measured by management at fair value on a recurring basis are generally classified within Level 1 or Level 2 of the fair value hierarchy. We have had assets in the past, and may have assets in the future, classified within Level 1 of the fair value hierarchy. No assets or investments were classified within Level 1 of the fair value hierarchy as of March 31, 2018 or as of December 31, 2017 . We did not have any transfers into and out of Level 1 or Level 2 during the three months ended March 31, 2018 or the twelve months ended December 31, 2017 . No assets or investments were classified as Level 3 as of March 31, 2018 or as of December 31, 2017 . The types of instruments valued by management, based on quoted prices in less active markets, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency, include corporate debentures and bonds, commercial paper, U.S. agency bonds and U.S. Treasury bills and asset-backed securities owned by Ultimate. Such instruments are generally classified within Level 2 of the fair value hierarchy. Ultimate uses consensus pricing, which is based on multiple pricing sources, to value its fixed income investments. The following table sets forth, by level within the fair value hierarchy, financial assets accounted for at fair value as of March 31, 2018 and December 31, 2017 (in thousands): As of March 31, 2018 As of December 31, 2017 Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Corporate debentures – bonds $ 2,833 $ — $ 2,833 $ — $ 2,844 $ — $ 2,844 $ — Commercial paper — — — — — — — — U.S. Agency bonds 283,467 — 283,467 — 208,750 — 208,750 — U.S. Treasury bills 1,424 — 1,424 — 5,870 — 5,870 — Asset-Backed securities — — — — 720 — 720 — Total $ 287,724 $ — $ 287,724 $ — $ 218,184 $ — $ 218,184 $ — Assets measured at fair value on a recurring basis were presented in the unaudited condensed consolidated balance sheet as of March 31, 2018 and the audited consolidated balance sheet as of December 31, 2017 as short-term and long-term investments in marketable securities. There were no financial liabilities accounted for at fair value as of March 31, 2018 and December 31, 2017 . |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, which range from 2 to 15 years. Leasehold improvements and assets under capital leases are amortized over the shorter of the estimated useful life of the asset or the term of the lease, which range from 3 to 15 years. Maintenance and repairs are charged to expense when incurred; betterments are capitalized. Upon the sale or retirement of assets, the cost, accumulated depreciation and amortization are removed from the accounts and any gain or loss is recognized. Property and equipment as of March 31, 2018 and December 31, 2017 consist of the following (in thousands): As of March 31, 2018 As of December 31, 2017 Computer equipment $ 188,575 $ 185,034 Internal-use software 193,694 178,093 Leasehold improvements 47,292 43,556 Other property and equipment 24,021 22,572 Property and equipment 453,582 429,255 Less: accumulated depreciation and amortization 193,800 185,591 Property and equipment, net $ 259,782 $ 243,664 We capitalize computer software development costs related to software developed for internal use in accordance with Accounting Standards Codification ("ASC") Topic 350-40, Intangibles Goodwill and Other-Internal Use Software. During the three months ended March 31, 2018 , we capitalized $14.6 million of computer software development costs related to a development project to be sold in the future as a cloud product only (the "Development Project"). There was $12.6 million of software development costs related to the Development Project which were capitalized in the three months ended March 31, 2017 . For the three months ended March 31, 2018 and March 31, 2017 , these capitalized costs were primarily direct labor costs. As a component of these direct labor costs we capitalized $1.0 million of stock-based compensation costs during the three months ended March 31, 2018 . During the three months ended March 31, 2017 , we capitalized $1.0 million of stock-based compensation costs. These capitalized costs are included with internal-use software in property and equipment in the unaudited condensed consolidated balance sheets and purchases of property and equipment in the unaudited condensed consolidated statements of cash flows. Internal-use software is amortized on a straight-line basis over its estimated useful life, commencing after the software development is substantially complete and the software is ready for its intended use. At each balance sheet date, we evaluate the useful lives of these assets and test for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. During the three months ended March 31, 2018 there was $1.8 million of amortization associated with certain product modules of the Development Project which were ready for their intended use. During the three months ended March 31, 2017 there was $1.0 million of amortization associated with certain product modules of the Development Project which were ready for their intended use. The amortization of capitalized software is included in cost of recurring revenues. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Deferred Contract Costs, Prepaid Expenses and Other Current Assets Deferred contract costs, prepaid expenses and other current assets as of March 31, 2018 and December 31, 2017 consist of the following (in thousands): As of March 31, 2018 As of December 31, 2017 Deferred contract costs $ 28,899 $ 38,519 Prepaid expenses 25,367 20,088 Other current assets 10,024 12,995 Total deferred contract costs, prepaid expenses and other current assets $ 64,290 $ 71,602 Deferred contract costs, which are primarily deferred sales commissions earned by our sales force and are considered incremental and recoverable costs of obtaining a contract with a customer, were $28.9 million as of March 31, 2018 and $38.5 million as of December 31, 2017. Amortization expense for the deferred contract costs was $5.4 million and $8.5 million for the three months ended March 31, 2018 and 2017, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented. Included in deferred contract costs and other assets, net are deferred contract costs of $96.3 million as of March 31, 2018 and $45.5 million as of December 31, 2017. Deferred contract costs are primarily deferred sales commissions earned by our sales force and are considered incremental and recoverable costs of obtaining a contract with a customer. The amortization of these deferred contract costs are expected to start after one year. |
Goodwill & Intangible Assets
Goodwill & Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill represents the excess of cost over the net tangible and identifiable intangible assets of acquired businesses. Goodwill amounts are not amortized, but rather tested for impairment at least annually. Identifiable intangible assets acquired in business combinations are recorded based upon fair value at the date of acquisition and amortized over their estimated useful lives. The changes in the carrying value of goodwill since December 31, 2017 were as follows (in thousands): Goodwill, December 31, 2017 $ 35,808 Translation adjustment for the three months ended March 31, 2018 (1) (195 ) Goodwill, March 31, 2018 $ 35,613 __________________________ (1) Represents the impact of the foreign currency translation of the portion of goodwill that is recorded by our Canadian subsidiary whose functional currency is also its local currency. Such goodwill is translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive income (loss). Intangible Assets The following tables present our acquired intangible assets as of the dates specified below (in thousands): March 31, 2018 Gross Carrying Amount Accumulated Amortization Cumulative Translation Adjustment (1) Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 23,300 $ (4,943 ) $ (932 ) $ 17,425 5.9 Customer relationships 4,700 (2,206 ) — 2,494 4.4 Non-compete agreements 300 (300 ) — — 0.0 $ 28,300 $ (7,449 ) $ (932 ) $ 19,919 5.7 December 31, 2017 Gross Carrying Amount Accumulated Amortization Cumulative Translation Adjustment (1) Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 23,300 $ (4,355 ) $ (895 ) $ 18,050 6.0 Customer relationships 4,700 (2,004 ) — 2,696 4.5 Non-compete agreements 300 (300 ) — — 0.0 $ 28,300 $ (6,659 ) $ (895 ) $ 20,746 5.9 ____________________________ (1) Represents the impact of the foreign currency translation of the portion of acquired intangible assets that is recorded by our Canadian subsidiary whose functional currency is also its local currency. Such intangible assets are translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive income (loss). Acquired intangible assets are amortized over their estimated useful life, generally three to ten years, in a manner that reflects the pattern in which the economic benefits are consumed. Included in acquired intangible assets as of March 31, 2018 and December 31, 2017 were $0.1 million of assets with indefinite lives. Amortization expense for acquired intangible assets was $0.8 million for the three months ended March 31, 2018 and March 31, 2017 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. The following table is a reconciliation of the shares of Ultimate's issued and outstanding $0.01 par value common stock ("Common Stock") used in the computation of basic and diluted net income per share for the three months ended March 31, 2018 and 2017 (in thousands): For the Three Months Ended March 31, 2018 2017 Basic weighted average shares outstanding 30,404 29,538 Effect of dilutive equity instruments 701 959 Diluted weighted average shares outstanding 31,105 30,497 Options to purchase shares of Common Stock and other stock-based awards outstanding which are not included in the calculation of diluted income per share because their impact is anti-dilutive — 3 |
Foreign Currency
Foreign Currency | 3 Months Ended |
Mar. 31, 2018 | |
Foreign Currency [Abstract] | |
Foreign Currency | Foreign Currency The financial statements of Ultimate’s foreign subsidiaries, The Ultimate Software Group of Canada, Inc. (“Ultimate Canada”) and The Ultimate Software Group of Asia, PTE. LTD. ("Ultimate Asia"), have been translated into U.S. dollars. The functional currency of Ultimate Canada is the Canadian dollar. Assets and liabilities are translated into U.S. dollars at period-end exchange rates. Income and expenses are translated at the average exchange rate for the reporting period. The resulting translation adjustments, representing unrealized gains or losses, are included in accumulated other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses resulting from foreign exchange transactions are included in total operating expenses in the unaudited condensed consolidated statements of income. There were no significant realized gains and losses resulting from foreign exchange transactions to the unaudited condensed consolidated statements of income for the three months ended March 31, 2018 and March 31, 2017 . For the three months ended March 31, 2018 , Ultimate had an unrealized translation loss of $0.5 million . For the three months ended March 31, 2017 , Ultimate had an unrealized translation gain of $0.2 million . Included in accumulated other comprehensive income (loss), as presented in the accompanying unaudited condensed consolidated balance sheets, are cumulative unrealized translation losses of $5.9 million as of March 31, 2018 and $5.4 million as of December 31, 2017 . |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Summary of Plans Our Amended and Restated 2005 Equity and Incentive Plan (the “Plan”) authorizes the grant of options (“Options”) to non-employee directors, officers and employees of Ultimate to purchase shares of Common Stock. The Plan also authorizes the grant to such persons of restricted and non-restricted shares of Common Stock, stock appreciation rights, stock units and cash performance awards (collectively, together with the Options, the “Awards”). As of March 31, 2018 , the aggregate number of shares of Common Stock that were available to be issued under all Awards granted under the Plan was 555,544 shares. The following table sets forth the non-cash stock-based compensation expense resulting from stock-based arrangements that were recorded in our unaudited condensed consolidated statements of income for the periods indicated (in thousands): For the Three Months Ended March 31, 2018 2017 Non-cash stock-based compensation expense: Cost of recurring revenues $ 3,432 $ 2,816 Cost of services revenues 2,373 1,989 Sales and marketing 16,338 17,411 Research and development 3,309 2,777 General and administrative 7,745 8,873 Total non-cash stock-based compensation expense $ 33,197 $ 33,866 Stock-based compensation for the three months ended March 31, 2018 was $33.2 million as compared with stock-based compensation of $33.9 million for the three months ended March 31, 2017 . The decrease of $0.7 million in stock-based compensation for the three month period included a decrease of $0.8 million associated with modifications and terminations made to the Company’s change in control plans in March 2015, February 2016, and February 2017. These changes were made to better align management's incentives with long-term value creation for our shareholders. As part of the modifications in connection with the terminations of the change in control plans, time-based restricted stock awards (vesting over three years) were granted to certain senior officers in March 2015, February 2016, and February 2017. Stock-based compensation expense associated with modifications and terminations made to the Company’s change-in-control plans in March 2015, February 2016 and February 2017, is shown in the table below (in thousands): For the Three Months Ended March 31, 2018 2017 Stock-based compensation expense : Stock-based compensation expense 19,989 19,812 Stock-based compensation expense related to change in control plans 13,208 14,054 Total non-cash stock-based compensation expense $ 33,197 $ 33,866 Net cash proceeds from the exercise of Options were $2.5 million for the three months ended March 31, 2018 and $1.6 million for the three months ended March 31, 2017 . Stock Option, Restricted Stock and Restricted Stock Unit Activity There were no Options granted during the three months ended March 31, 2018 . The following table summarizes stock option activity (for previously granted Options) for the three months ended March 31, 2018 (in thousands, except per share amounts): Stock Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding at December 31, 2017 114 $ 29.24 0.4 $ 21,476 Granted — — 0 — Exercised (84 ) 29.96 0 — Forfeited or expired — — 0 — Outstanding at March 31, 2018 30 $ 27.23 0.3 $ 6,497 Exercisable at March 31, 2018 30 $ 27.23 0.3 $ 6,497 The aggregate intrinsic value of Options in the table above represents total pretax intrinsic value (i.e., the difference between the closing price of Common Stock on the last trading day of the reporting period and the exercise price times the number of shares) that would have been received by the option holders had all option holders exercised their Options on March 31, 2018 . The amount of the aggregate intrinsic value changes, based on the fair value of Common Stock. Total intrinsic value of Options exercised was $16.8 million for the three months ended March 31, 2018 and $10.0 million for the three months ended March 31, 2017 . All previously granted Options were fully vested as of December 31, 2011 and, therefore, no Options vested during the three months ended March 31, 2018 and March 31, 2017 , respectively. As of March 31, 2018 , there were no unrecognized compensation costs related to non-vested Options expected to be recognized as all previously granted Options were fully vested as of December 31, 2011. The following table summarizes restricted stock awards and restricted stock unit awards granted during the three months ended March 31, 2018 and March 31, 2017 (in thousands): For the Three Months Ended March 31, 2018 2017 Restricted Stock Awards: Non-Employee Directors 2 2 Senior Officers 200 354 Total Restricted Stock Awards Granted 202 356 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 296 275 Total Restricted Stock Unit Awards Granted 296 275 The following table summarizes the activity pertaining to Common Stock previously issued under restricted stock awards and restricted stock unit awards which vested during the three months ended March 31, 2018 and March 31, 2017 (in thousands): For the Three Months Ended March 31, 2018 2017 Shares Vested Shares Retained (1) Amount Retained (in millions) (1) Shares Issued Shares Vested Shares Retained (1) Amount Retained (in millions) (1) Shares Issued Restricted Stock Awards: Non-Employee Directors 2 — $0.0 2 5 — $0.0 5 Senior Officers 396 150 34.0 246 278 109 21.2 169 Non-Senior Officers and Other Employees 5 2 0.0 3 2 1 0.1 1 Total Restricted Stock Awards 403 152 $34.0 251 285 110 $21.3 175 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 208 70 $16.0 137 172 63 $12.2 109 Total Restricted Stock Unit Awards 208 70 $16.0 137 172 63 $12.2 109 ______________________________ (1) During the three months ended March 31, 2018 and March 31, 2017 , of the shares released, 221,891 and 172,836 shares, respectively, were retained by Ultimate and not issued, in satisfaction of withholding payroll tax requirements applicable to the payment of such awards. The following table summarizes restricted stock award and restricted stock unit activity for the three months ended March 31, 2018 (in thousands, except per share values): Restricted Stock Awards Restricted Stock Unit Awards Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 882 $ 179.95 630 $ 170.73 Granted 202 228.87 296 228.87 Vested and released (403 ) 170.42 (208 ) 173.79 Forfeited or expired — — (12 ) 199.71 Outstanding at March 31, 2018 681 $ 200.13 706 $ 206.59 As of March 31, 2018 , $120.9 million of total unrecognized compensation costs related to non-vested restricted stock awards were expected to be recognized over a weighted average period of 1.91 years. As of March 31, 2018 , $123.7 million of total unrecognized compensation costs related to non-vested restricted stock unit awards were expected to be recognized over a weighted average period of 2.13 years. |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Revenue and Performance Obligations During the three months ended March 31, 2018 and 2017, $144.1 million and $119.9 million , respectively, of recurring revenues recognized, were included in the deferred revenue balances at the beginning of the respective periods. Services revenues recognized in the same periods from deferred revenue balances at the beginning of the respective periods were not material. Transaction Price Allocated to the Remaining Performance Obligations As of March 31, 2018, approximately $1.6 billion of revenue is expected to be recognized from remaining SaaS performance obligations which includes the remaining period of their initial contract term as well as the remaining renewal periods under contract as of March 31, 2018. We expect to recognize revenue on approximately 48 percent of these remaining performance obligations over the next 12 months, with the balance recognized thereafter. Revenue from remaining performance obligations for services as of March 31, 2018 was not material. |
Immaterial Correction of Prior
Immaterial Correction of Prior Period Financial Statements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Immaterial Correction of Prior Period Financial Statements | Immaterial Correction of Prior Period Financial Statements As described in Note 17 in our Notes to Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 26, 2018, we revalued our net deferred tax assets to implement the federal Tax Cuts and Jobs Act (the "Tax Act") which the federal government passed on December 22, 2017. During the year ended December 31, 2017, immaterial errors were discovered in prior periods in the reporting of the GAAP income tax expense associated with the stock-based compensation for certain of our executive officers. While we have concluded that the impact of these errors on our previously-issued unaudited condensed consolidated statements of income and unaudited condensed consolidated statements of comprehensive income was not material, we have revised our previously-reported unaudited condensed consolidated statements of income and unaudited condensed consolidated statements of comprehensive income for the three months ended March 31, 2017. The revisions include a decrease to GAAP net income for the first quarter of 2017 of $0.1 million , as a result of the increase to our GAAP income tax expense for the first quarter of 2017. For the first quarter of 2017, there was no impact on previously reported cash flows, pre-tax income and non-GAAP results. The revisions to our unaudited condensed consolidated statements of income and unaudited condensed consolidated statements of comprehensive income for the three months ended March 31, 2017 are as follows (in thousands, except per share amounts): Unaudited Condensed Consolidated Statements of Income For the Three Months Ended March 31, 2017 As Reported As Revised Income before income taxes $ 3,015 $ 3,015 Provision for income taxes 4,319 4,225 Net income $ 7,334 $ 7,240 Net income per share: Basic $ 0.25 $ 0.25 Diluted $ 0.24 $ 0.24 Unaudited Condensed Consolidated Statement of Comprehensive Income Net income $ 7,334 $ 7,240 Other comprehensive income, net of tax 24 24 Comprehensive income $ 7,358 $ 7,264 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Fair Value of Financial Instruments | . |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, we recognize revenues in accordance with Topic 606. The core principle of Topic 606 is that revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. To achieve the core principle of Topic 606, we perform the following steps: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) we satisfy a performance obligation. The significant majority of our two major revenue sources - recurring and services is derived from contracts with customers. Recurring revenues are primarily related to our subscription-based SaaS performance obligations. Services revenues are primarily related to implementation services for our SaaS customers (including activation services as well as post-live work typically billed on a time and materials basis) and, to a much lesser extent, fees for other services, including the provision of payroll-related forms, sales of time clocks and the printing of W-2 and Affordable Care Act ("ACA") forms for certain customers, as well as certain client reimbursable out-of-pocket expenses. Fees charged to subscription-based SaaS performance obligations are each priced on a per-employee-per-month (“PEPM”) basis for a given calendar month based on usage and fees charged for implementation services and are typically priced on a fixed fee basis for activating the product offering. A majority of our SaaS subscription revenues are satisfied over time, because they are simultaneously received and consumed by the customer, with certain SaaS performance obligations satisfied at a point in time. Our activation services revenues are satisfied over time because they are simultaneously received and consumed by the customer. Our SaaS performance obligations are each priced based on the number of active customer employees, as of the signing of the contract, at the contract PEPM rate over the initial contract term. Our activation services are based on a fixed fee charged to our customers. There is typically no variable consideration related to our SaaS performance obligations or our activation services, nor do they include a significant financing component, non-cash consideration, or consideration payable to a customer. Our SaaS performance obligations are typically billed quarterly in advance while our activation services are billed over the implementation period. Our SaaS arrangements include multiple performance obligations and transaction price allocations are based on the stand-alone selling price ("SSP") for each performance obligation. There is an observable input for SSP for each of the SaaS performance obligations. Since activation services do not have directly observable pricing, the SSP is estimated using market conditions and observable inputs, which is calculated based on historical average discounts off our standard price list. For our performance obligations, the consideration allocated to cloud subscription revenues is recognized as recurring revenues, typically using the output method, over the initial contract period, as those subscription-based services are consumed, typically commencing with the date the customer processes their first live payroll using UltiPro (referred to as going "Live"). The consideration allocated to activation services is recognized as services revenues based on the proportion performed, using reasonably dependable estimates (in relation to progression through activation phases), by product. |
Recently Issued and Adopted Accounting Standards | Recently Adopted Accounting Standards In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“Topic 606”). Topic 606 supersedes the revenue requirements in ASU Topic 605, Revenue Recognition ("Topic 605") and requires the recognition of revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services and includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which discusses the deferral of incremental costs of obtaining a contract with a customer, including the period of amortization of such costs. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. Collectively, we refer to Topic 606 and Subtopic 340-40 as the "new standard." Effective January 1, 2018, we adopted the requirements of the new standard, utilizing the modified retrospective method of transition with the new standard applied to all customer contracts that were not completed on the effective date of the new standard. Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, as detailed below. The impact of adopting the new standard on our revenues resulted in an immaterial increase to deferred revenue and had a material impact on our unaudited condensed consolidated balance sheet, as a result of the amortization period over which deferred contract costs to obtain related subscription contracts are recognized. Under Topic 605, we deferred incremental commission costs to obtain a contract and amortized those costs over the initial term of the related subscription contract, which is generally 2 - 3 years. During our assessment of the new standard, we did not identify any incremental contract costs from what was capitalized under Topic 605. We analyzed our customer contract term periods and our customer life, taking into consideration technological changes for our UltiPro product offering, and based on our assessment of the new standard, we amortize the deferred contract costs over 7 years on a systematic basis, consistent with the pattern of transfer of the goods or services to which the asset relates. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is effective for Ultimate on January 1, 2019 and early adoption is permitted. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. We have not yet determined the effect the standard will have on our ongoing financial reporting. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of the changes made to our January 1, 2018 balance sheet for the adoption of the new standard were as follows (in thousands): Balance as of December 31, 2017 Adjustments Due to Adoption of Topic 606 Balance as of January 1, 2018 Assets Deferred contract costs, prepaid expenses and other current assets $ 71,602 $ (22,318 ) $ 49,284 Total current assets 990,772 (22,318 ) 968,454 Deferred contract costs and other assets, net 53,409 47,259 100,668 Deferred tax assets, net 32,696 (6,803 ) 25,893 Total assets $ 1,377,211 $ 18,138 $ 1,395,349 Liabilities Deferred revenue $ 197,088 $ 1,909 $ 198,997 Total current liabilities 843,086 1,909 844,995 Deferred income tax liability 251 170 422 Total liabilities 859,186 2,079 861,265 Stockholders' Equity Accumulated earnings 125,788 16,059 141,847 Total stockholders' equity 518,025 16,059 534,084 Total liabilities and stockholders' equity $ 1,377,211 $ 18,138 $ 1,395,349 In accordance with the requirements of the new standard, the disclosure for the quantitative effect and the significant changes between the reported results under the new standard and those that would have been reported under legacy GAAP (i.e., Topic 605) on our unaudited consolidated condensed income statement and balance sheet was as follows (in thousands): For the Three Months Ended March 31, 2018 As Reported - Topic 606 Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Income Statement Revenues Recurring revenues $ 236,587 $ 237,030 $ (443 ) Operating Expenses Sales and marketing 71,197 77,154 (5,957 ) Net income $ 20,994 $ 15,480 $ (5,514 ) As of March 31, 2018 As Reported - Topic 606 Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Balance Sheet Assets Deferred contract costs, prepaid expenses and other current assets $ 64,290 $ 76,219 $ (11,929 ) Deferred contract costs and other assets, net 104,582 51,692 52,890 Liabilities Deferred revenue 200,576 198,107 2,469 Stockholders' Equity Accumulated earnings $ 162,840 $ 124,348 $ (38,492 ) |
Investments in Marketable Secur
Investments in Marketable Securities and Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments in Marketable Securities and Fair Value of Financial Instruments [Abstract] | |
Amortized cost, net unrealized gain and fair value of investments in marketable available-for-sale securities | The amortized cost, net unrealized loss and fair value of our funds held for customers and corporate investments in marketable available-for-sale securities as of March 31, 2018 and December 31, 2017 are shown below (in thousands): As of March 31, 2018 As of December 31, 2017 Amortized Cost Net Unrealized Gain/(Loss) Fair Value (1) Amortized Cost Net Unrealized (Loss)/Gain Fair Value (1) Type of issue: Funds held for customers – money market securities and other cash equivalents $ 926,952 $ — $ 926,952 $ 354,312 $ — $ 354,312 Available-for-sale securities: Corporate debentures – bonds 2,837 (4 ) 2,833 2,848 (4 ) 2,844 Commercial paper — — — — — — U.S. Agency bonds 284,444 (977 ) 283,467 209,443 (693 ) 208,750 U.S. Treasury bills 1,425 (1 ) 1,424 5,876 (6 ) 5,870 Asset-Backed securities — — — 721 (1 ) 720 Total corporate investments and funds held for customers $ 1,215,658 $ (982 ) $ 1,214,676 $ 573,200 $ (704 ) $ 572,496 _________________ (1) Included within available-for-sale securities as of March 31, 2018 and December 31, 2017 are corporate investments with fair values of $4.3 million and $9.4 million , respectively. Included within available-for-sale securities as of March 31, 2018 and December 31, 2017 are funds held for customers with fair values of $283.5 million and $208.8 million , respectively. All available-for-sale securities were included in Level 2 of the fair value hierarchy. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of March 31, 2018 are as follows (in thousands): Securities in unrealized loss position less than 12 months Securities in unrealized loss position greater than 12 months Total Gross unrealized losses Fair market value Gross unrealized losses Fair market value Gross unrealized losses Fair market value Corporate debentures – bonds $ (2 ) $ 1,401 $ (2 ) $ 1,432 $ (4 ) $ 2,833 Commercial paper — — — — — — U.S. Agency bonds — — (977 ) 283,467 (977 ) 283,467 U.S. Treasury bills — — (1 ) 1,424 (1 ) 1,424 Asset-Backed securities — — — — — — Total $ (2 ) $ 1,401 $ (980 ) $ 286,323 $ (982 ) $ 287,724 The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2017 are as follows (in thousands): Securities in unrealized loss position less than 12 months Securities in unrealized loss position greater than 12 months Total Gross unrealized losses Fair market value Gross unrealized losses Fair market value Gross unrealized losses Fair market value Corporate debentures – bonds $ (1 ) $ 699 $ — $ — $ (1 ) $ 699 Commercial paper — — — — — — U.S. Agency bonds (408 ) 74,940 (285 ) 133,811 (693 ) 208,751 U.S. Treasury bills — — (6 ) 5,869 (6 ) 5,869 Asset-Backed securities — — — — — — Total $ (409 ) $ 75,639 $ (291 ) $ 139,680 $ (700 ) $ 215,319 |
Amortized costs and fair value of marketable available-for-sale securities by contractual maturity | The amortized cost and fair value of the marketable available-for-sale securities, by contractual maturity, as of March 31, 2018 , are shown below (in thousands): Corporate Investments Investments with Funds Held for Customers Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 4,261 $ 4,257 $ 223,941 $ 223,241 $ 228,202 $ 227,498 Due after one year — — 60,503 60,226 60,503 60,226 Total $ 4,261 $ 4,257 $ 284,444 $ 283,467 $ 288,705 $ 287,724 The amortized cost and fair value of the marketable available-for-sale securities, by contractual maturity, as of December 31, 2017 , are shown below (in thousands): Corporate Investments Investments with Funds Held for Customers Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 9,445 $ 9,434 $ 164,072 $ 163,641 $ 173,517 $ 173,075 Due after one year — 45,371 45,109 45,371 45,109 Total $ 9,445 $ 9,434 $ 209,443 $ 208,750 $ 218,888 $ 218,184 |
Fair value of financial assets and liabilities, by level within the fair value hierarchy | The following table sets forth, by level within the fair value hierarchy, financial assets accounted for at fair value as of March 31, 2018 and December 31, 2017 (in thousands): As of March 31, 2018 As of December 31, 2017 Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Corporate debentures – bonds $ 2,833 $ — $ 2,833 $ — $ 2,844 $ — $ 2,844 $ — Commercial paper — — — — — — — — U.S. Agency bonds 283,467 — 283,467 — 208,750 — 208,750 — U.S. Treasury bills 1,424 — 1,424 — 5,870 — 5,870 — Asset-Backed securities — — — — 720 — 720 — Total $ 287,724 $ — $ 287,724 $ — $ 218,184 $ — $ 218,184 $ — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment as of March 31, 2018 and December 31, 2017 consist of the following (in thousands): As of March 31, 2018 As of December 31, 2017 Computer equipment $ 188,575 $ 185,034 Internal-use software 193,694 178,093 Leasehold improvements 47,292 43,556 Other property and equipment 24,021 22,572 Property and equipment 453,582 429,255 Less: accumulated depreciation and amortization 193,800 185,591 Property and equipment, net $ 259,782 $ 243,664 |
Prepaid Expenses and Other Cu23
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid expenses and other current assets | Deferred contract costs, prepaid expenses and other current assets as of March 31, 2018 and December 31, 2017 consist of the following (in thousands): As of March 31, 2018 As of December 31, 2017 Deferred contract costs $ 28,899 $ 38,519 Prepaid expenses 25,367 20,088 Other current assets 10,024 12,995 Total deferred contract costs, prepaid expenses and other current assets $ 64,290 $ 71,602 |
Goodwill & Intangible Assets (T
Goodwill & Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying value of goodwill since December 31, 2017 were as follows (in thousands): Goodwill, December 31, 2017 $ 35,808 Translation adjustment for the three months ended March 31, 2018 (1) (195 ) Goodwill, March 31, 2018 $ 35,613 __________________________ (1) Represents the impact of the foreign currency translation of the portion of goodwill that is recorded by our Canadian subsidiary whose functional currency is also its local currency. Such goodwill is translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive income (loss). |
Schedule of Finite-Lived Intangible Assets | The following tables present our acquired intangible assets as of the dates specified below (in thousands): March 31, 2018 Gross Carrying Amount Accumulated Amortization Cumulative Translation Adjustment (1) Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 23,300 $ (4,943 ) $ (932 ) $ 17,425 5.9 Customer relationships 4,700 (2,206 ) — 2,494 4.4 Non-compete agreements 300 (300 ) — — 0.0 $ 28,300 $ (7,449 ) $ (932 ) $ 19,919 5.7 December 31, 2017 Gross Carrying Amount Accumulated Amortization Cumulative Translation Adjustment (1) Net Carrying Amount Weighted Average Remaining Useful Life Developed technology $ 23,300 $ (4,355 ) $ (895 ) $ 18,050 6.0 Customer relationships 4,700 (2,004 ) — 2,696 4.5 Non-compete agreements 300 (300 ) — — 0.0 $ 28,300 $ (6,659 ) $ (895 ) $ 20,746 5.9 ____________________________ (1) Represents the impact of the foreign currency translation of the portion of acquired intangible assets that is recorded by our Canadian subsidiary whose functional currency is also its local currency. Such intangible assets are translated into U.S. dollars using exchange rates in effect at period end. Adjustments related to foreign currency translation are included in other comprehensive income (loss). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of shares used in the computation of basic and diluted net income per share | The following table is a reconciliation of the shares of Ultimate's issued and outstanding $0.01 par value common stock ("Common Stock") used in the computation of basic and diluted net income per share for the three months ended March 31, 2018 and 2017 (in thousands): For the Three Months Ended March 31, 2018 2017 Basic weighted average shares outstanding 30,404 29,538 Effect of dilutive equity instruments 701 959 Diluted weighted average shares outstanding 31,105 30,497 Options to purchase shares of Common Stock and other stock-based awards outstanding which are not included in the calculation of diluted income per share because their impact is anti-dilutive — 3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Non-cash stock-based compensation expense | The following table sets forth the non-cash stock-based compensation expense resulting from stock-based arrangements that were recorded in our unaudited condensed consolidated statements of income for the periods indicated (in thousands): For the Three Months Ended March 31, 2018 2017 Non-cash stock-based compensation expense: Cost of recurring revenues $ 3,432 $ 2,816 Cost of services revenues 2,373 1,989 Sales and marketing 16,338 17,411 Research and development 3,309 2,777 General and administrative 7,745 8,873 Total non-cash stock-based compensation expense $ 33,197 $ 33,866 |
Allocation of share-based compensation costs by plan | Stock-based compensation expense associated with modifications and terminations made to the Company’s change-in-control plans in March 2015, February 2016 and February 2017, is shown in the table below (in thousands): For the Three Months Ended March 31, 2018 2017 Stock-based compensation expense : Stock-based compensation expense 19,989 19,812 Stock-based compensation expense related to change in control plans 13,208 14,054 Total non-cash stock-based compensation expense $ 33,197 $ 33,866 |
Summary of stock option activity | The following table summarizes stock option activity (for previously granted Options) for the three months ended March 31, 2018 (in thousands, except per share amounts): Stock Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding at December 31, 2017 114 $ 29.24 0.4 $ 21,476 Granted — — 0 — Exercised (84 ) 29.96 0 — Forfeited or expired — — 0 — Outstanding at March 31, 2018 30 $ 27.23 0.3 $ 6,497 Exercisable at March 31, 2018 30 $ 27.23 0.3 $ 6,497 |
Schedule of restricted stock awards and restricted stock unit awards granted | The following table summarizes restricted stock awards and restricted stock unit awards granted during the three months ended March 31, 2018 and March 31, 2017 (in thousands): For the Three Months Ended March 31, 2018 2017 Restricted Stock Awards: Non-Employee Directors 2 2 Senior Officers 200 354 Total Restricted Stock Awards Granted 202 356 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 296 275 Total Restricted Stock Unit Awards Granted 296 275 |
Schedule of activity pertaining to restricted awards vested | The following table summarizes the activity pertaining to Common Stock previously issued under restricted stock awards and restricted stock unit awards which vested during the three months ended March 31, 2018 and March 31, 2017 (in thousands): For the Three Months Ended March 31, 2018 2017 Shares Vested Shares Retained (1) Amount Retained (in millions) (1) Shares Issued Shares Vested Shares Retained (1) Amount Retained (in millions) (1) Shares Issued Restricted Stock Awards: Non-Employee Directors 2 — $0.0 2 5 — $0.0 5 Senior Officers 396 150 34.0 246 278 109 21.2 169 Non-Senior Officers and Other Employees 5 2 0.0 3 2 1 0.1 1 Total Restricted Stock Awards 403 152 $34.0 251 285 110 $21.3 175 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 208 70 $16.0 137 172 63 $12.2 109 Total Restricted Stock Unit Awards 208 70 $16.0 137 172 63 $12.2 109 ______________________________ (1) During the three months ended March 31, 2018 and March 31, 2017 , of the shares released, 221,891 and 172,836 shares, respectively, were retained by Ultimate and not issued, in satisfaction of withholding payroll tax requirements applicable to the payment of such awards. |
Summary of restricted stock award and restricted stock unit activity | The following table summarizes restricted stock award and restricted stock unit activity for the three months ended March 31, 2018 (in thousands, except per share values): Restricted Stock Awards Restricted Stock Unit Awards Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 882 $ 179.95 630 $ 170.73 Granted 202 228.87 296 228.87 Vested and released (403 ) 170.42 (208 ) 173.79 Forfeited or expired — — (12 ) 199.71 Outstanding at March 31, 2018 681 $ 200.13 706 $ 206.59 |
Immaterial Correction of Prio27
Immaterial Correction of Prior Period Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The revisions to our unaudited condensed consolidated statements of income and unaudited condensed consolidated statements of comprehensive income for the three months ended March 31, 2017 are as follows (in thousands, except per share amounts): Unaudited Condensed Consolidated Statements of Income For the Three Months Ended March 31, 2017 As Reported As Revised Income before income taxes $ 3,015 $ 3,015 Provision for income taxes 4,319 4,225 Net income $ 7,334 $ 7,240 Net income per share: Basic $ 0.25 $ 0.25 Diluted $ 0.24 $ 0.24 Unaudited Condensed Consolidated Statement of Comprehensive Income Net income $ 7,334 $ 7,240 Other comprehensive income, net of tax 24 24 Comprehensive income $ 7,358 $ 7,264 |
Nature of Operations (Details)
Nature of Operations (Details) | Mar. 31, 2018employeecountrylanguage |
Nature of Operations [Line Items] | |
Number of languages in which product solution available | language | 14 |
Number of country-specific localizations (more than 35) | country | 37 |
UltiPro Enterprise solution suite, minimum number of employees | 2,501 |
UltiPro Enterprise solution suite, company size, number of employees (10,000 or more) | 10,000 |
Minimum | |
Nature of Operations [Line Items] | |
UltiPro enterprise solution suite, number of employees in mid-market companies | 501 |
Number Of employees in companies as a strategic market | 100 |
Maximum | |
Nature of Operations [Line Items] | |
UltiPro enterprise solution suite, number of employees in mid-market companies | 2,500 |
Number Of employees in companies as a strategic market | 500 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 5 years 8 months 5 days | 5 years 10 months 21 days |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 3 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 10 years | |
Subscription Contracts | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 2 years | |
Subscription Contracts | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 3 years |
Summary of Significant Accoun30
Summary of Significant Accounting Policies and Recent Accounting Pronouncements - Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Deferred contract costs, prepaid expenses and other current assets | $ 64,290 | $ 49,284 | $ 71,602 | |
Total current assets | 1,615,082 | 968,454 | 990,772 | |
Deferred contract costs and other assets, net | 104,582 | 100,668 | 53,409 | |
Deferred tax assets, net | 22,429 | 25,893 | 32,696 | |
Total assets | 2,057,522 | 1,395,349 | 1,377,211 | |
Deferred revenue | 200,576 | 198,997 | 197,088 | |
Total current liabilities | 1,499,221 | 844,995 | 843,086 | |
Deferred income tax liability | 361 | 422 | 251 | |
Total liabilities | 1,516,875 | 861,265 | 859,186 | |
Accumulated earnings | 162,840 | 141,847 | 125,788 | |
Total stockholders’ equity | 540,647 | 534,084 | 518,025 | |
Total liabilities and stockholders’ equity | 2,057,522 | 1,395,349 | 1,377,211 | |
Recurring revenues | 236,587 | $ 189,981 | ||
Sales and marketing | 71,197 | 69,360 | ||
Net income | 20,994 | $ 7,240 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Deferred contract costs, prepaid expenses and other current assets | 76,219 | 71,602 | ||
Total current assets | 990,772 | |||
Deferred contract costs and other assets, net | 51,692 | 53,409 | ||
Deferred tax assets, net | 32,696 | |||
Total assets | 1,377,211 | |||
Deferred revenue | 198,107 | 197,088 | ||
Total current liabilities | 843,086 | |||
Deferred income tax liability | 251 | |||
Total liabilities | 859,186 | |||
Accumulated earnings | 124,348 | 125,788 | ||
Total stockholders’ equity | 518,025 | |||
Total liabilities and stockholders’ equity | $ 1,377,211 | |||
Recurring revenues | 237,030 | |||
Sales and marketing | 77,154 | |||
Net income | 15,480 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Deferred contract costs, prepaid expenses and other current assets | (11,929) | (22,318) | ||
Total current assets | (22,318) | |||
Deferred contract costs and other assets, net | 52,890 | 47,259 | ||
Deferred tax assets, net | (6,803) | |||
Total assets | 18,138 | |||
Deferred revenue | 2,469 | 1,909 | ||
Total current liabilities | 1,909 | |||
Deferred income tax liability | 170 | |||
Total liabilities | 2,079 | |||
Accumulated earnings | (38,492) | 16,059 | ||
Total stockholders’ equity | 16,059 | |||
Total liabilities and stockholders’ equity | $ 18,138 | |||
Recurring revenues | (443) | |||
Sales and marketing | (5,957) | |||
Net income | $ (5,514) |
Investments in Marketable Sec31
Investments in Marketable Securities and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Funds held for customers – money market securities and other cash equivalents | $ 926,952 | $ 354,312 |
Net Unrealized Gain/(Loss) | (982) | (704) |
Fair Value | 287,724 | 218,184 |
Total corporate investments and funds held for clients - amortized cost basis | 1,215,658 | 573,200 |
Total corporate investments and funds held for clients - fair value | 1,214,676 | 572,496 |
Amortized Cost Basis | ||
Due in one year or less | 228,202 | 173,517 |
Due after one year | 60,503 | 45,371 |
Total | 288,705 | 218,888 |
Fair Value | ||
Due in one year or less | 227,498 | 173,075 |
Due after one year | 60,226 | 45,109 |
Total | 287,724 | 218,184 |
Corporate debentures and bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,837 | 2,848 |
Net Unrealized Gain/(Loss) | (4) | (4) |
Fair Value | 2,833 | 2,844 |
Fair Value | ||
Total | 2,833 | 2,844 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 0 |
Net Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 0 | 0 |
Fair Value | ||
Total | 0 | 0 |
U.S. Agency bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 284,444 | 209,443 |
Net Unrealized Gain/(Loss) | (977) | (693) |
Fair Value | 283,467 | 208,750 |
Fair Value | ||
Total | 283,467 | 208,750 |
U.S. Treasury bills | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,425 | 5,876 |
Net Unrealized Gain/(Loss) | (1) | (6) |
Fair Value | 1,424 | 5,870 |
Fair Value | ||
Total | 1,424 | 5,870 |
Asset-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 721 |
Net Unrealized Gain/(Loss) | 0 | (1) |
Fair Value | 0 | 720 |
Fair Value | ||
Total | 0 | 720 |
Corporate Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 4,257 | 9,434 |
Amortized Cost Basis | ||
Due in one year or less | 4,261 | 9,445 |
Due after one year | 0 | 0 |
Total | 4,261 | 9,445 |
Fair Value | ||
Due in one year or less | 4,257 | 9,434 |
Due after one year | 0 | |
Total | 4,257 | 9,434 |
Investments with Funds Held for Customers | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 283,467 | 208,750 |
Amortized Cost Basis | ||
Due in one year or less | 223,941 | 164,072 |
Due after one year | 60,503 | 45,371 |
Total | 284,444 | 209,443 |
Fair Value | ||
Due in one year or less | 223,241 | 163,641 |
Due after one year | 60,226 | 45,109 |
Total | $ 283,467 | $ 208,750 |
Funds held for Customers, Cor32
Funds held for Customers, Corporate Investments in Marketable Securities and Fair Value of Financial Instruments Investments in Marketable Securities and Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross unrealized losses | $ (2) | $ (409) |
Fair market value | 1,401 | 75,639 |
Gross unrealized losses | (980) | (291) |
Fair market value | 286,323 | 139,680 |
Gross unrealized losses | (982) | (700) |
Fair market value | 287,724 | 215,319 |
Corporate debentures – bonds | 2,833 | 2,844 |
Commercial paper | 0 | 0 |
U.S. Agency bonds | 283,467 | 208,750 |
U.S. Treasury bills | 1,424 | 5,870 |
Asset-Backed securities | 0 | |
Total | 287,724 | 218,184 |
(Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate debentures – bonds | 0 | 0 |
Commercial paper | 0 | 0 |
U.S. Agency bonds | 0 | 0 |
U.S. Treasury bills | 0 | 0 |
Asset-Backed securities | 0 | 0 |
Total | 0 | 0 |
(Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate debentures – bonds | 2,833 | 2,844 |
Commercial paper | 0 | 0 |
U.S. Agency bonds | 283,467 | 208,750 |
U.S. Treasury bills | 1,424 | 5,870 |
Asset-Backed securities | 0 | 720 |
Total | 287,724 | 218,184 |
(Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate debentures – bonds | 0 | 0 |
Commercial paper | 0 | 0 |
U.S. Agency bonds | 0 | 0 |
U.S. Treasury bills | 0 | 0 |
Asset-Backed securities | 0 | 0 |
Total | 0 | 0 |
Corporate debentures and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross unrealized losses | (2) | (1) |
Fair market value | 1,401 | 699 |
Gross unrealized losses | (2) | 0 |
Fair market value | 1,432 | 0 |
Gross unrealized losses | (4) | (1) |
Fair market value | 2,833 | 699 |
Total | 2,833 | 2,844 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
U.S. Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross unrealized losses | 0 | (408) |
Fair market value | 0 | 74,940 |
Gross unrealized losses | (977) | (285) |
Fair market value | 283,467 | 133,811 |
Gross unrealized losses | (977) | (693) |
Fair market value | 283,467 | 208,751 |
Total | 283,467 | 208,750 |
U.S. Treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | (1) | (6) |
Fair market value | 1,424 | 5,869 |
Gross unrealized losses | (1) | (6) |
Fair market value | 1,424 | 5,869 |
Total | 1,424 | 5,870 |
Asset-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Total | $ 0 | $ 720 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Capital Leased Assets [Line Items] | |||
Property and equipment | $ 453,582 | $ 429,255 | |
Less: accumulated depreciation and amortization | 193,800 | 185,591 | |
Property and equipment, net | 259,782 | 243,664 | |
Capitalized Computer Software, Additions | 14,600 | $ 12,600 | |
Stock-based compensation costs capitalized | 1,000 | 1,000 | |
Computer equipment | |||
Capital Leased Assets [Line Items] | |||
Property and equipment | 188,575 | 185,034 | |
Internal-use software | |||
Capital Leased Assets [Line Items] | |||
Property and equipment | 193,694 | 178,093 | |
Leasehold Improvements | |||
Capital Leased Assets [Line Items] | |||
Property and equipment | 47,292 | 43,556 | |
Other property and equipment | |||
Capital Leased Assets [Line Items] | |||
Property and equipment | $ 24,021 | $ 22,572 | |
Minimum | Property and equipment | |||
Capital Leased Assets [Line Items] | |||
Estimated useful life (in years) | 2 years | ||
Minimum | Leasehold Improvements | |||
Capital Leased Assets [Line Items] | |||
Estimated useful life (in years) | 3 years | ||
Maximum | Property and equipment | |||
Capital Leased Assets [Line Items] | |||
Estimated useful life (in years) | 15 years | ||
Maximum | Leasehold Improvements | |||
Capital Leased Assets [Line Items] | |||
Estimated useful life (in years) | 15 years | ||
Development Project | Internal-use software | |||
Capital Leased Assets [Line Items] | |||
Amortization | $ 1,800 | $ 1,000 |
Prepaid Expenses and Other Cu34
Prepaid Expenses and Other Current Assets (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | ||||
Prepaid commissions | $ 28,899,000 | $ 38,519,000 | ||
Other Prepaid Expense | 25,367,000 | 20,088,000 | ||
Other Assets | 10,024,000 | 12,995,000 | ||
Total prepaid expenses and other current assets | 64,290,000 | $ 49,284,000 | 71,602,000 | |
Deferred contract costs | 28,900,000 | 38,500,000 | ||
Amortization expense | 5,400,000 | $ 8,500,000 | ||
Impairment loss | 0 | $ 0 | ||
Deferred contract costs, net | $ 96,300,000 | $ 45,500,000 |
Goodwill & Intangible Assets Go
Goodwill & Intangible Assets Goodwill and Intangible Assets (Goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, December 31, 2017 | $ 35,808 |
Translation adjustment | (195) |
Goodwill, March 31, 2018 | $ 35,613 |
Goodwill & Intangible Assets (D
Goodwill & Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 28,300 | $ 28,300 | |
Accumulated Amortization | (7,449) | (6,659) | |
Cumulative Translation Adjustment | (932) | $ (895) | |
Net Carrying Amount | $ 19,919 | 20,746 | |
Estimated Useful Lives | 5 years 8 months 5 days | 5 years 10 months 21 days | |
Intangible assets with indefinite lives | $ 100 | 100 | |
Amortization of intangible assets | 800 | ||
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 23,300 | 23,300 | |
Accumulated Amortization | (4,943) | (4,355) | |
Cumulative Translation Adjustment | (932) | $ (895) | |
Net Carrying Amount | $ 17,425 | 18,050 | |
Estimated Useful Lives | 5 years 10 months 7 days | 6 years 7 days | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 4,700 | 4,700 | |
Accumulated Amortization | (2,206) | (2,004) | |
Cumulative Translation Adjustment | 0 | $ 0 | |
Net Carrying Amount | $ 2,494 | $ 2,696 | |
Estimated Useful Lives | 4 years 5 months 4 days | 4 years 6 months 4 days | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 10 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares shares in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Basic weighted average shares outstanding (in shares) | 30,404 | 29,538 | |
Effect of dilutive equity instruments (in shares) | 701 | 959 | |
Diluted weighted average shares outstanding (in shares) | 31,105 | 30,497 | |
Options to purchase shares of Common Stock and other stock-based awards outstanding which are not included in the calculation of diluted income per share because their impact is anti-dilutive (in shares) | 0 | 3 |
Foreign Currency (Details)
Foreign Currency (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Foreign Currency [Abstract] | |||
Cumulative unrealized translation losses | $ 0.5 | $ 0.2 | |
Unrealized translation loss included in accumulated other comprehensive income | $ 5.9 | $ 5.4 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | $ 33,197,000 | $ 33,866,000 |
Increase in share-based compensation | 700,000 | |
Net cash proceeds from the exercise of stock options | 2,506,000 | 1,572,000 |
Total non-cash stock-based compensation expense | 33,197,000 | 33,866,000 |
Cost of recurring revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 3,432,000 | 2,816,000 |
Cost of services revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 2,373,000 | 1,989,000 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 16,338,000 | 17,411,000 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 3,309,000 | 2,777,000 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | $ 7,745,000 | 8,873,000 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Vesting period | 3 years | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Options vested | $ 0 | 0 |
Net cash proceeds from the exercise of stock options | 2,500,000 | 1,600,000 |
Change In Control Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock-based compensation expense | 19,989,000 | 19,812,000 |
March 2015, February 2016, And February 2017 Control Plans Change | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Increase in share-based compensation | 800,000 | |
Total non-cash stock-based compensation expense | $ 13,208,000 | $ 14,054,000 |
Amended and Restated 2005 Equity and Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Aggregate number of shares of Common Stock available for issuance (in shares) | 555,544 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Details 1) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Document Fiscal Year Focus | 2,018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 114 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (84) | |
Forfeited or expired (in shares) | 0 | |
Outstanding at end of period (in shares) | 30 | |
Exercisable at end of period (in shares) | 30 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 29.24 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 29.96 | |
Forfeited or expired (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | 27.23 | |
Exercisable at end of period (in dollars per share) | $ 27.23 | |
Weighted Average Remaining Contractual Term [Abstract] | ||
Outstanding at beginning of period (in years) | 3 months 22 days | 4 months 24 days |
Granted (in years) | 0 years | |
Exercised (in years) | 0 years | |
Forfeited or expired (in years) | 0 years | |
Outstanding at end of period (in years) | 3 months 22 days | 4 months 24 days |
Exercisable at end of period (in years) | 3 months 22 days | |
Aggregate Intrinsic Value [Abstract] | ||
Outstanding at beginning of period | $ 21,476,000 | |
Granted | 0 | |
Exercised | 0 | |
Forfeited or expired | 0 | |
Outstanding at end of period | 6,497,000 | |
Exercisable at end of period | 6,497,000 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Total intrinsic value of options exercised | 16,800,000 | $ 10,000,000 |
Options vested | 0 | $ 0 |
Total unrecognized compensation costs | $ 0 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 882 | |
Granted (in shares) | 202 | 356 |
Vested and Released (in shares) | (403) | (285) |
Forfeited or expired (in shares) | 0 | |
Outstanding at end of period (in shares) | 681 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 179.95 | |
Granted (in dollars per share) | 228.87 | |
Vested and Released (in dollars per share) | 170.42 | |
Forfeited or expired (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | $ 200.13 | |
Total unrecognized compensation costs | $ 120,900,000 | |
Non-vested restricted stock weighted average recognition period | 1 year 10 months 28 days | |
Restricted Stock | Non-Employee Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in shares) | 2 | 2 |
Vested and Released (in shares) | (2) | (5) |
Restricted Stock | Non-Senior Officers and Other Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in shares) | 200 | 354 |
Vested and Released (in shares) | (5) | (2) |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 630 | |
Granted (in shares) | 296 | 275 |
Vested and Released (in shares) | (208) | (172) |
Forfeited or expired (in shares) | (12) | |
Outstanding at end of period (in shares) | 706 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 170.73 | |
Granted (in dollars per share) | 228.87 | |
Vested and Released (in dollars per share) | 173.79 | |
Forfeited or expired (in dollars per share) | 199.71 | |
Outstanding at end of period (in dollars per share) | $ 206.59 | |
Total unrecognized compensation costs | $ 123,700,000 | |
Non-vested restricted stock weighted average recognition period | 2 years 1 month 17 days | |
Restricted Stock Units (RSUs) | Non-Senior Officers and Other Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in shares) | 296 | 275 |
Vested and Released (in shares) | (208) | (172) |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Awards Vested (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 221,891 | 172,836 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested (in shares) | 403,000 | 285,000 |
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 152,000 | 110,000 |
Aggregate amount of shares retained by company and not issued | $ 34 | $ 21.3 |
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 251,000 | 175,000 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested (in shares) | 208,000 | 172,000 |
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 70,000 | 63,000 |
Aggregate amount of shares retained by company and not issued | $ 16 | $ 12.2 |
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 137,000 | 109,000 |
Non-Employee Directors | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested (in shares) | 2,000 | 5,000 |
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 0 | 0 |
Aggregate amount of shares retained by company and not issued | $ 0 | $ 0 |
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 2,000 | 5,000 |
Senior Officers | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested (in shares) | 396,000 | 278,000 |
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 150,000 | 109,000 |
Aggregate amount of shares retained by company and not issued | $ 34 | $ 21.2 |
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 246,000 | 169,000 |
Non-Senior Officers and Other Employees | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested (in shares) | 5,000 | 2,000 |
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 2,000 | 1,000 |
Aggregate amount of shares retained by company and not issued | $ 0 | $ 0.1 |
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 3,000 | 1,000 |
Non-Senior Officers and Other Employees | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested (in shares) | 208,000 | 172,000 |
Shares retained by company an not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 70,000 | 63,000 |
Aggregate amount of shares retained by company and not issued | $ 16 | $ 12.2 |
Shares retained by company and not issued, in satisfaction of employee withholding tax requirements applicable to payment of awards (in shares) | 137,000 | 109,000 |
Deferred Revenue and Performa42
Deferred Revenue and Performance Obligations - Revenue recognized (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 144.1 | $ 119.9 |
Deferred Revenue and Performa43
Deferred Revenue and Performance Obligations (Details) $ in Billions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation expected to be satisfied | $ 1.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent | 48.00% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Immaterial Correction of Prio44
Immaterial Correction of Prior Period Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Income before income taxes | $ 22,277 | $ 3,015 |
Provision for income taxes | (1,283) | 4,225 |
Net income | $ 20,994 | $ 7,240 |
Basic (in dollars per share) | $ 0.69 | $ 0.25 |
Diluted (in dollars per share) | $ 0.67 | $ 0.24 |
Other comprehensive income (loss), net of tax | $ (693) | $ 24 |
Comprehensive income | $ 20,301 | 7,264 |
As Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Income before income taxes | 3,015 | |
Provision for income taxes | 4,319 | |
Net income | $ 7,334 | |
Basic (in dollars per share) | $ 0.25 | |
Diluted (in dollars per share) | $ 0.24 | |
Other comprehensive income (loss), net of tax | $ 24 | |
Comprehensive income | 7,358 | |
Tax Cuts And Jobs Act | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income | $ 100 |