Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Ultimate Software Group Inc | |
Entity Central Index Key | 0001016125 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 31,680,399 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 100,424 | $ 151,247 |
Investments in marketable securities | 3,448 | 10,741 |
Accounts receivable, net of allowance for doubtful accounts of $1,750 for 2019 and $1,650 for 2018 | 247,651 | 238,768 |
Deferred contract costs, prepaid expenses and other current assets | 110,155 | 90,761 |
Total current assets before funds held for customers | 461,678 | 491,517 |
Funds held for customers | 1,378,121 | 618,206 |
Total current assets | 1,839,799 | 1,109,723 |
Property and equipment, net | 321,962 | 302,939 |
Goodwill | 216,395 | 219,904 |
Intangible assets, net | 137,059 | 144,411 |
Deferred contract costs and other assets, net | 201,056 | 129,108 |
Deferred income tax assets, net | 0 | 14,632 |
Total assets | 2,716,271 | 1,920,717 |
Current liabilities: | ||
Accounts payable | 16,825 | 16,058 |
Accrued expenses and other liabilities | 143,982 | 154,383 |
Deferred revenue | 249,219 | 238,940 |
Finance lease obligations | 8,142 | 6,303 |
Total current liabilities before customer funds obligations | 418,168 | 415,684 |
Customer funds obligations | 1,378,736 | 619,230 |
Total current liabilities | 1,796,904 | 1,034,914 |
Deferred revenue | 844 | 1,009 |
Deferred rent | 0 | 8,472 |
Finance lease obligations | 7,136 | 5,739 |
Other long-term liabilities | 60,872 | 500 |
Deferred income tax liability | 24,165 | 25,105 |
Total liabilities | 1,889,921 | 1,075,739 |
Stockholders’ equity: | ||
Preferred Stock | 0 | 0 |
Common Stock, $.01 par value, 50,000,000 shares authorized, 36,338,258 and 35,985,995 shares issued as of March 31, 2019 and December 31, 2018, respectively | 363 | 360 |
Additional paid-in capital | 836,185 | 863,030 |
Accumulated other comprehensive loss | (19,537) | (14,574) |
Accumulated earnings | 220,697 | 207,521 |
Stockholders' equity before treasury stock | 1,037,708 | 1,056,337 |
Treasury stock, 4,657,995 shares, at cost, for 2019 and 2018 | (211,359) | (211,359) |
Total stockholders’ equity | 826,349 | 844,978 |
Total liabilities and stockholders’ equity | 2,716,270 | 1,920,717 |
Series A Junior Preferred Stock | ||
Stockholders’ equity: | ||
Preferred Stock | $ 0 | $ 0 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Allowance for doubtful accounts | $ 1,750 | $ 1,650 |
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) | 36,338,258 | 35,985,995 |
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 CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Recurring | $ 287,925 | $ 236,587 |
Services | 47,080 | 40,168 |
Total revenues | 335,005 | 276,755 |
Cost of revenues: | ||
Recurring | 82,598 | 62,865 |
Services | 46,847 | 41,908 |
Total cost of revenues | 129,445 | 104,773 |
Gross profit | 205,560 | 171,982 |
Operating expenses: | ||
Sales and marketing | 85,622 | 71,197 |
Research and development | 64,505 | 46,974 |
General and administrative | 45,723 | 31,722 |
Total operating expenses | 195,850 | 149,893 |
Operating income | 9,710 | 22,089 |
Other (expense) income: | ||
Interest expense and other, net | (808) | (197) |
Other income, net | 490 | 385 |
Total other (expense) income, net | (318) | 188 |
Income before income taxes | 9,392 | 22,277 |
Benefit (provision) for income taxes | 3,784 | (1,283) |
Net income | $ 13,176 | $ 20,994 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.42 | $ 0.69 |
Diluted (in dollars per share) | $ 0.41 | $ 0.67 |
Weighted average shares outstanding: | ||
Basic (in shares) | 31,526 | 30,404 |
Diluted (in shares) | 32,140 | 31,105 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 13,176 | $ 20,994 |
Other comprehensive loss: | ||
Unrealized gain (loss) on investments in marketable available-for-sale securities | 625 | (322) |
Unrealized loss on foreign currency translation adjustments | (5,413) | (469) |
Other comprehensive loss, before tax | (4,788) | (791) |
Income tax (provision) benefit related to items of other comprehensive income | (175) | 90 |
Other comprehensive loss, net of tax | (4,963) | (701) |
Comprehensive income | $ 8,213 | $ 20,293 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 13,176 | $ 20,994 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,327 | 9,358 |
Provision for doubtful accounts | 3,475 | 2,815 |
Non-cash stock-based compensation expense | 38,158 | 33,197 |
Income taxes | 13,936 | 821 |
Net amortization of premiums and accretion of discounts on available-for-sale securities | 12 | (114) |
Changes in operating assets and liabilities, net of business combinations: | ||
Accounts receivable | (12,338) | (4,302) |
Deferred contract costs, prepaid expenses and other current assets | (16,701) | (15,006) |
Deferred contract costs and other assets | (5,935) | (3,914) |
Accounts payable | 825 | (96) |
Accrued expenses, other liabilities and deferred rent | (26,814) | 11,369 |
Deferred revenue | 10,114 | 1,455 |
Net cash provided by operating activities | 35,235 | 56,577 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (25,018) | (22,871) |
Purchases of marketable securities | (79,922) | (114,732) |
Proceeds from sales and maturities of marketable securities | 87,521 | 44,985 |
Net change in money market securities and other cash equivalents held to satisfy customer funds obligations | (757,792) | (572,640) |
Net cash used in investing activities | (775,211) | (665,258) |
Cash flows from financing activities: | ||
Net proceeds from issuances of Common Stock | 0 | 2,506 |
Shares acquired to settle employee tax withholding liabilities | (66,131) | (50,338) |
Principal payments on capital lease obligations | (2,247) | (1,576) |
Payments of other long-term liabilities | (125) | (1,750) |
Net change in customer funds obligations | 757,689 | 648,025 |
Net cash provided by financing activities | 689,186 | 596,867 |
Effect of exchange rate changes on cash | (33) | (232) |
Net decrease in cash and cash equivalents | (50,823) | (12,046) |
Cash and cash equivalents, beginning of period | 151,247 | 155,685 |
Cash and cash equivalents, end of period | 100,424 | 143,639 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 119 | 126 |
Cash paid for taxes | 1,261 | 1,718 |
Non-cash investing and financing activities: | ||
Capital lease obligations to acquire new equipment | 5,299 | 913 |
Stock based compensation for capitalized software | $ 1,130 | $ 1,034 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid -in Capital | Accumulated Other Comprehensive Loss | Accumulated Earnings | Treasury Stock |
Balance at Dec. 31, 2017 | $ 518,025 | $ 348 | $ 609,160 | $ (5,912) | $ 125,788 | $ (211,359) |
Balance (in shares) at Dec. 31, 2017 | 34,788 | 4,658 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 20,994 | 20,994 | ||||
Unrealized loss on investments in marketable securities available-for-sale, net of tax | (232) | (232) | ||||
Unrealized loss on foreign exchange | (469) | (469) | ||||
Shares acquired to settle employee tax withholding liability | (50,338) | (50,338) | ||||
Issuances of Common Stock from exercises of stock options | 2,506 | $ 1 | 2,505 | |||
Issuances of Common Stock from exercises of stock options (in shares) | 83 | |||||
Issuances of Common Stock from restricted stock releases | 4 | $ 4 | ||||
Issuances of Common Stock from restricted stock releases (in shares) | 389 | |||||
Non-cash stock-based compensation expense | 34,099 | 34,099 | ||||
Balance at Mar. 31, 2018 | 540,647 | $ 353 | 595,426 | (6,613) | 162,840 | $ (211,359) |
Balance (in shares) at Mar. 31, 2018 | 35,260 | 4,658 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
ASC 606 cumulative adjustment | ASC 606 cumulative adjustment | 16,058 | 16,058 | ||||
Balance at Dec. 31, 2018 | 844,978 | $ 360 | 863,030 | (14,574) | 207,521 | $ (211,359) |
Balance (in shares) at Dec. 31, 2018 | 35,986 | 4,658 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 13,176 | 13,176 | ||||
Unrealized loss on investments in marketable securities available-for-sale, net of tax | 450 | 450 | ||||
Unrealized loss on foreign exchange | (5,413) | (5,413) | ||||
Shares acquired to settle employee tax withholding liability | (66,131) | (66,131) | ||||
Issuances of Common Stock from restricted stock releases | 3 | $ 3 | ||||
Issuances of Common Stock from restricted stock releases (in shares) | 352 | |||||
Non-cash stock-based compensation expense | 39,286 | 39,286 | ||||
Balance at Mar. 31, 2019 | $ 826,349 | $ 363 | $ 836,185 | $ (19,537) | $ 220,697 | $ (211,359) |
Balance (in shares) at Mar. 31, 2019 | 36,338 | 4,658 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations With offices in the United States, Canada, France, Germany, England, and Singapore, 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") and employee experience solutions. Ultimate's UltiPro product suite (“UltiPro”) is a comprehensive, engaging solution that has human resources ("HR") and payroll at its core and includes benefits management, talent acquisition, talent management, time management, and global people management functionality available in 14 languages with 61 country-specific localizations. Ultimate also offers a-la-carte employee experience solutions, such as HR Service Delivery and "Perception," an employee-sentiment analysis solution. Ultimate's solutions are delivered via software-as-a-service ("SaaS"), now more commonly known as cloud computing, to organizations with employees in the United States, Canada, Europe, Asia Pacific, and other global locations. 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 employees and larger; 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. |
Basis of Presentation, Consolid
Basis of Presentation, Consolidation and the Use of Estimates | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 filed with the SEC on March 1, 2019 (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, 2019 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. |
Accounting Standards and Signif
Accounting Standards and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Standards and Significant Accounting Policies | Accounting Standards and Significant Accounting Policies Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-02, "Leases" ("Topic 842"). This guidance, as amended by subsequent ASU's on the topic, improves transparency and comparability among companies by recognizing right-of-use (ROU) assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. Effective January 1, 2019, we adopted Topic 842 and elected the "package of practical expedients" in transition where the prior conclusions of lease identification, lease classification and initial direct costs under Topic 840, “Leases” (the "old standard"), do not need to be reassessed for adoption. No other practical expedients available under the new standard were elected. The transition to Topic 842 did not materially impact the recognition of our finance leases and did not have a material effect to operating or finance lease transactions recorded in the unaudited condensed consolidated statements of income and unaudited condensed consolidated statements of cash flows. Topic 842 did result in a material effect to the unaudited condensed consolidated balance sheet due to the recognition of ROU assets and lease liabilities related to real estate and office equipment operating leases. For the transition, we elected not to restate prior period comparatives presented in the unaudited condensed consolidated financial statements with the cumulative effect to the unaudited condensed consolidated balance sheets as follows (in thousands): Balance as of December 31, 2018 Adjustments Due to Adoption of Topic 842 Balance as of January 1, 2019 Assets Deferred contract costs, prepaid expenses and other current assets $ 90,761 $ 2,760 $ 93,521 Total current assets 1,109,723 2,760 1,112,483 Deferred contract costs and other assets, net 129,108 54,826 183,934 Total assets $ 1,920,717 $ 57,586 $ 1,978,303 Liabilities Accrued expenses and other liabilities $ 154,383 $ 15,911 $ 170,294 Total current liabilities 415,684 15,911 431,595 Deferred rent 8,472 (8,472 ) — Other long-term liabilities 5,739 50,147 55,886 Total liabilities 1,075,739 57,586 1,133,325 Stockholders' Equity Total stockholders' equity $ 844,978 $ — 844,978 Total liabilities and stockholders' equity $ 1,920,717 $ 57,586 $ 1,978,303 Summary of Significant Accounting Policies Except for the accounting policy for leases that was updated as a result of adopting Topic 842, 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, 2018, filed with the SEC on March 1, 2019, that have had a material impact on our unaudited condensed consolidated financial statements and related notes. Leases Effective January 1, 2019, we recognize leases in accordance with Topic 842. We identify a contract as a lease or containing a lease if the terms convey the right to control use of identified tangible property or equipment for a period of time in exchange for consideration. We enter into lease contracts primarily for the right to control use of office space (“property leases”), computer equipment and other assets. Property leases are classified as operating leases and include locations throughout North America and to a lesser extent, in Europe and one office location in Singapore. Computer equipment leases includes equipment such as laptops and servers which are classified as finance leases because they are typically purchased at the end of the lease period. Other equipment leases include printer and copier equipment which are classified as operating leases. Lease contracts are recognized on their commencement date which is when the leased asset is made available for use to the Company. A lease contract is assessed for classification, and its liability is initially measured by the total number of lease payments over the lease term, discounted by an incremental borrowing rate defined as an estimated collateralized borrowing rate that the Company would pay for a similar amount and term. The lease term excludes any renewal options because exercising the renewals are not reasonably certain at lease commencement. The lease payments include the fixed lease payments per the contract and we typically do not enter into contracts with variable lease payments that require estimation at lease commencement. Once a lease liability is recognized, lease accretion adjustments and lease payments are recorded against the liability over the lease term. For each lease contract, a ROU asset is recognized at lease commencement and is initially measured in an amount equal to the lease liability, less any lease payments made prior to lease commencement and lease incentives the Company reasonably expects to receive. Initial direct costs that would otherwise not be incurred if a lease had not been obtained are typically not material and are expensed as incurred. The recorded ROU asset is subsequently amortized over the lease term for all operating lease assets and over the estimated useful life for finance lease assets which range from 3 to 5 years. If an indicator of impairment exists for an ROU asset, it is tested for recoverability and an impairment charge is recorded to the extent that the assets carrying amount exceeds its fair value. Lease modifications that result in rights to use additional tangible property or equipment are treated as separate contracts from the original lease because the incremental lease charges are typically commensurate of the relative standalone selling price for each additional leased asset. When a lease modification fully or partially terminates an existing lease, the lease liability and ROU asset on modification date is remeasured for the reduction in lease payments. |
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, 2019 | |
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 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 loss 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, 2019 and March 31, 2018 . Gains and losses on the sale of available-for-sale securities are determined using the specific identification method. There was $883 thousand and $162 thousand of net unrealized gain on available-for-sale securities as of March 31, 2019 and December 31, 2018 , 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, 2019 and December 31, 2018 are shown below (in thousands): As of March 31, 2019 As of December 31, 2018 Amortized Cost Net Unrealized Gain 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 $ 1,093,277 $ — $ 1,093,277 $ 333,942 $ — $ 333,942 Available-for-sale securities: Corporate debentures – bonds 1,399 1 1,400 4,469 (2 ) 4,467 Commercial paper 850 — 850 2,687 — 2,687 U.S. Agency bonds 283,962 882 284,844 284,099 165 284,264 U.S. Treasury bills 749 — 749 2,240 — 2,240 Asset-Backed securities 449 — 449 1,348 (1 ) 1,347 Total corporate investments and funds held for customers $ 1,380,686 $ 883 $ 1,381,569 $ 628,785 $ 162 $ 628,947 _________________ (1) Included within available-for-sale securities as of March 31, 2019 and December 31, 2018 are corporate investments with fair values of $3.4 million and $10.7 million , respectively. Included within available-for-sale securities as of March 31, 2019 and December 31, 2018 are funds held for customers with fair values of $284.8 million and $284.3 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, 2019 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 $ — $ — $ — $ — $ — $ — U.S. Agency bonds (1 ) 17,240 (12 ) 15,953 (13 ) 33,193 U.S. Treasury bills — — — — — — Asset-Backed securities — — — — — — Total $ (1 ) $ 17,240 $ (12 ) $ 15,953 $ (13 ) $ 33,193 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, 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 ) $ 3,521 $ — $ — $ (2 ) $ 3,521 U.S. Agency bonds (39 ) 14,957 (133 ) 45,246 (172 ) 60,203 U.S. Treasury bills — 2,239 — — — 2,239 Asset-Backed securities (1 ) 1,347 — — (1 ) 1,347 Total $ (42 ) $ 22,064 $ (133 ) $ 45,246 $ (175 ) $ 67,310 The amortized cost and fair value of the marketable available-for-sale securities, by contractual maturity, as of March 31, 2019 , 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 $ 3,447 $ 3,448 $ 230,198 $ 230,891 $ 233,645 $ 234,339 Due after one year — — 53,764 53,953 53,764 53,953 Total $ 3,447 $ 3,448 $ 283,962 $ 284,844 $ 287,409 $ 288,292 The amortized cost and fair value of the marketable available-for-sale securities, by contractual maturity, as of December 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 $ 10,743 $ 10,741 $ 185,385 $ 185,361 $ 196,128 $ 196,102 Due after one year — 98,714 98,903 98,714 98,903 Total $ 10,743 $ 10,741 $ 284,099 $ 284,264 $ 294,842 $ 295,005 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, 2019 or as of December 31, 2018 . We did not have any transfers into and out of Level 1 or Level 2 during the three months ended March 31, 2019 or the twelve months ended December 31, 2018 . No assets or investments were classified as Level 3 as of March 31, 2019 or as of December 31, 2018 . 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, 2019 and December 31, 2018 (in thousands): As of March 31, 2019 As of December 31, 2018 Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Corporate debentures – bonds $ 1,400 $ — $ 1,400 $ — $ 4,467 $ — $ 4,467 $ — Commercial paper 850 — 850 — 2,687 — 2,687 — U.S. Agency bonds 284,844 — 284,844 — 284,264 — 284,264 — U.S. Treasury bills 749 — 749 — 2,240 — 2,240 — Asset-Backed securities 449 — 449 — 1,347 — 1,347 — Total $ 288,292 $ — $ 288,292 $ — $ 295,005 $ — $ 295,005 $ — Assets measured at fair value on a recurring basis were presented in the unaudited condensed consolidated balance sheet as of March 31, 2019 and the audited consolidated balance sheet as of December 31, 2018 as short-term and long-term investments in marketable securities. There were no financial liabilities accounted for at fair value as of March 31, 2019 and December 31, 2018 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018 (in thousands): For the Three Months Ended March 31, 2019 2018 Basic weighted average shares outstanding 31,526 30,404 Effect of dilutive equity instruments 614 701 Diluted weighted average shares outstanding 32,140 31,105 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 303 — |
Foreign Currency
Foreign Currency | 3 Months Ended |
Mar. 31, 2019 | |
Foreign Currency [Abstract] | |
Foreign Currency | Foreign Currency The financial statements of Ultimate’s foreign subsidiaries have been translated into U.S. dollars. The functional currency of our wholly-owned subsidiaries, The Ultimate Software Group of Canada, Inc. (“Ultimate Canada”), The Ultimate Software Group of Asia, PTE. LTD. ("Ultimate Asia") and PeopleDoc SAS ("PeopleDoc"), have been translated into U.S. dollars. 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 non-cash foreign currency translation adjustments, representing unrealized gains or losses, are included in stockholder's equity as a component of accumulated other comprehensive loss. We did not have any realized gains and losses resulting from foreign exchange transactions for the three months ended March 31, 2019 and March 31, 2018 . Accumulated other comprehensive loss was $19.5 million at March 31, 2019 and $14.6 million at December 31, 2018 . Included in accumulated other comprehensive loss was unrealized translation losses of $19.7 million at March 31, 2019 and $14.3 million at December 31, 2018. There were no significant reclassifications of realized gains and losses resulting from foreign exchange transactions to the unaudited condensed consolidated statements of income for the three months ended March 31, 2019 and March 31, 2018. |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Revenue and Performance Obligations During the three months ended March 31, 2019 and 2018, $175.2 million and $144.1 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, 2019, approximately $2.0 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, 2019. We expect to recognize revenue on approximately 46 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, 2019 was not material. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
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 restricted and non-restricted shares of Common Stock, stock appreciation rights, stock units and cash performance awards (collectively, the “Awards”) to non-employee directors, officers and employees of Ultimate. As of March 31, 2019, the aggregate number of shares of Common Stock that were available to be issued under all Awards granted under the Plan was 1,386,928 shares. The following table sets forth the non-cash stock-based compensation ("SBC") 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, 2019 2018 Non-cash stock-based compensation expense: Cost of recurring revenues $ 5,475 $ 3,432 Cost of services revenues 2,887 2,373 Sales and marketing 19,024 16,338 Research and development 4,701 3,309 General and administrative 6,071 7,745 Total non-cash stock-based compensation expense $ 38,158 $ 33,197 Ultimate capitalizes the portion of SBC expense attributed to personnel whose labor costs are being capitalized pursuant to ASC Topic 350-40, Intangibles Goodwill and Other-Internal Use Software , related to software development. For the three months ended March 31, 2019 and March 31, 2018, SBC related to capitalized software was $1.1 million and $1.0 million , respectively. Total non-cash stock-based compensation expense, including SBC related to capitalized software, was $39.3 million and $34.2 million for the three months ended March 31, 2019 and March 31, 2018, respectively. Restricted Stock and Restricted Stock Unit Activity The following table summarizes restricted stock awards and restricted stock unit awards granted during the three months ended March 31, 2019 and March 31, 2018 (in thousands): For the Three Months Ended March 31, 2019 2018 Restricted Stock Awards: Non-Employee Directors 2 2 Senior Officers 195 200 Total Restricted Stock Awards Granted 197 202 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 327 296 Total Restricted Stock Unit Awards Granted 327 296 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, 2019 and March 31, 2018 (in thousands): For the Three Months Ended March 31, 2019 2018 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 1 — $ — 1 2 — $ — 2 Senior Officers 302 114 38.1 188 396 150 34.0 246 Non-Senior Officers and Other Employees — — 0.0 — 5 2 0.0 3 Total Restricted Stock Awards 303 114 $ 38.1 189 403 152 $ 34.0 251 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 248 85 $ 28.0 163 208 70 $ 16.0 137 Total Restricted Stock Unit Awards 248 85 $ 28.0 163 208 70 $ 16.0 137 ______________________________ (1) During the three months ended March 31, 2019 and March 31, 2018, of the shares released, 198,943 and 221,891 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, 2019 (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, 2018 686 $ 207.25 751 $ 220.52 Granted 197 332.41 327 332.41 Vested and released (303 ) 187.53 (248 ) 197.00 Forfeited or expired — — (6 ) 261.30 Outstanding at March 31, 2019 580 $ 260.09 824 $ 271.75 As of March 31, 2019, total unrecognized compensation costs included $187.9 million related to non-vested restricted stock unit awards and $132.5 million related to non-vested restricted stock. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Effective January 1, 2019, we recognize leases in accordance with Topic 842. In the unaudited condensed consolidated balance sheet as of March 31, 2019, the ROU assets for operating leases are presented with long-term other assets, net and the ROU assets for finance leases are presented with property and equipment, net. The short-term portions of operating lease liabilities are presented with accrued expenses and other liabilities and the long-term portions are presented with other long-term liabilities. The short-term and long term-portions of finance lease liabilities are separate lines items presented in the unaudited condensed consolidated balance sheet. Below are the ROU asset and lease liability balances as of March 31, 2019 (in thousands): As of March 31, 2019 Finance Leases Operating Leases Right-of-use assets $ 19,255 $ 65,945 Short-term portion of lease liabilities $ 8,142 $ 19,668 Long-term portion of lease liabilities 7,136 60,497 Total lease liabilities $ 15,278 $ 80,165 Below is disaggregated quantitative information (in thousands) of our total lease cost including the amounts recognized in profit and loss and the cash flows arising from lease transactions. For the Three Months Ended March 31, 2019 Finance lease cost: Amortization of right-of-use assets $ 1,632 Interest on lease liabilities 119 Operating lease cost 4,464 Total lease cost $ 6,215 Other Information Cash paid in the period for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 5,136 Operating cash outflows from finance leases 1,817 Financing cash flows from finance leases 2,247 Right-of-use assets obtained in the period in exchange for lease liabilities: Right-of-use assets for finance leases $ 5,300 Right-of-use assets for operating leases 14,793 The weighted average lease term, future leases costs and effects of discounting on operating and finance leases are as follows: Finance Leases Operating Leases Weighted-average remaining lease term in years 2.18 5.63 Future lease costs (in thousands) Twelve months ending March 31, 2020 $ 8,552 $ 20,022 2021 6,312 19,048 2022 3,355 17,300 2023 160 12,417 2024 — 8,246 Thereafter — 20,261 Total future lease costs 18,379 97,294 Less: effects of discounting future lease costs 3,101 17,129 Recognized lease liability as of March 31, 2019 $ 15,278 $ 80,165 Weighted-average discount rate 5.22 % 4.92 % |
Leases | Leases Effective January 1, 2019, we recognize leases in accordance with Topic 842. In the unaudited condensed consolidated balance sheet as of March 31, 2019, the ROU assets for operating leases are presented with long-term other assets, net and the ROU assets for finance leases are presented with property and equipment, net. The short-term portions of operating lease liabilities are presented with accrued expenses and other liabilities and the long-term portions are presented with other long-term liabilities. The short-term and long term-portions of finance lease liabilities are separate lines items presented in the unaudited condensed consolidated balance sheet. Below are the ROU asset and lease liability balances as of March 31, 2019 (in thousands): As of March 31, 2019 Finance Leases Operating Leases Right-of-use assets $ 19,255 $ 65,945 Short-term portion of lease liabilities $ 8,142 $ 19,668 Long-term portion of lease liabilities 7,136 60,497 Total lease liabilities $ 15,278 $ 80,165 Below is disaggregated quantitative information (in thousands) of our total lease cost including the amounts recognized in profit and loss and the cash flows arising from lease transactions. For the Three Months Ended March 31, 2019 Finance lease cost: Amortization of right-of-use assets $ 1,632 Interest on lease liabilities 119 Operating lease cost 4,464 Total lease cost $ 6,215 Other Information Cash paid in the period for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 5,136 Operating cash outflows from finance leases 1,817 Financing cash flows from finance leases 2,247 Right-of-use assets obtained in the period in exchange for lease liabilities: Right-of-use assets for finance leases $ 5,300 Right-of-use assets for operating leases 14,793 The weighted average lease term, future leases costs and effects of discounting on operating and finance leases are as follows: Finance Leases Operating Leases Weighted-average remaining lease term in years 2.18 5.63 Future lease costs (in thousands) Twelve months ending March 31, 2020 $ 8,552 $ 20,022 2021 6,312 19,048 2022 3,355 17,300 2023 160 12,417 2024 — 8,246 Thereafter — 20,261 Total future lease costs 18,379 97,294 Less: effects of discounting future lease costs 3,101 17,129 Recognized lease liability as of March 31, 2019 $ 15,278 $ 80,165 Weighted-average discount rate 5.22 % 4.92 % |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 4, 2019, the Company announced that it entered into a definitive merger agreement to be acquired by an investor group led by Hellman & Friedman in an all-cash transaction that values the Company at an aggregate value of approximately $11 billion . Under the terms of the merger agreement, the Company’s stockholders receive $331.50 per share in cash upon the closing of the transaction. The obligation of the parties to complete the merger is subject to customary closing conditions, including, among others, approval by the Company’s stockholders and regulatory approvals. A special meeting of the stockholders of The Ultimate Software Group, Inc. was held on April 30, 2019 at 10:00 a.m., New York City time where the Company’s stockholders voted and approved the proposal to adopt the Agreement and Plan of Merger, dated as of February 3, 2019, by and among the Company, Parent and Merger Sub. |
Accounting Standards and Sign_2
Accounting Standards and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued and Adopted Accounting Standards | Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-02, "Leases" ("Topic 842"). This guidance, as amended by subsequent ASU's on the topic, improves transparency and comparability among companies by recognizing right-of-use (ROU) assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. Effective January 1, 2019, we adopted Topic 842 and elected the "package of practical expedients" in transition where the prior conclusions of lease identification, lease classification and initial direct costs under Topic 840, “Leases” (the "old standard"), do not need to be reassessed for adoption. No other practical expedients available under the new standard were elected. The transition to Topic 842 did not materially impact the recognition of our finance leases and did not have a material effect to operating or finance lease transactions recorded in the unaudited condensed consolidated statements of income and unaudited condensed consolidated statements of cash flows. Topic 842 did result in a material effect to the unaudited condensed consolidated balance sheet due to the recognition of ROU assets and lease liabilities related to real estate and office equipment operating leases. |
Leases | Leases Effective January 1, 2019, we recognize leases in accordance with Topic 842. We identify a contract as a lease or containing a lease if the terms convey the right to control use of identified tangible property or equipment for a period of time in exchange for consideration. We enter into lease contracts primarily for the right to control use of office space (“property leases”), computer equipment and other assets. Property leases are classified as operating leases and include locations throughout North America and to a lesser extent, in Europe and one office location in Singapore. Computer equipment leases includes equipment such as laptops and servers which are classified as finance leases because they are typically purchased at the end of the lease period. Other equipment leases include printer and copier equipment which are classified as operating leases. Lease contracts are recognized on their commencement date which is when the leased asset is made available for use to the Company. A lease contract is assessed for classification, and its liability is initially measured by the total number of lease payments over the lease term, discounted by an incremental borrowing rate defined as an estimated collateralized borrowing rate that the Company would pay for a similar amount and term. The lease term excludes any renewal options because exercising the renewals are not reasonably certain at lease commencement. The lease payments include the fixed lease payments per the contract and we typically do not enter into contracts with variable lease payments that require estimation at lease commencement. Once a lease liability is recognized, lease accretion adjustments and lease payments are recorded against the liability over the lease term. For each lease contract, a ROU asset is recognized at lease commencement and is initially measured in an amount equal to the lease liability, less any lease payments made prior to lease commencement and lease incentives the Company reasonably expects to receive. Initial direct costs that would otherwise not be incurred if a lease had not been obtained are typically not material and are expensed as incurred. The recorded ROU asset is subsequently amortized over the lease term for all operating lease assets and over the estimated useful life for finance lease assets which range from 3 to 5 years. If an indicator of impairment exists for an ROU asset, it is tested for recoverability and an impairment charge is recorded to the extent that the assets carrying amount exceeds its fair value. Lease modifications that result in rights to use additional tangible property or equipment are treated as separate contracts from the original lease because the incremental lease charges are typically commensurate of the relative standalone selling price for each additional leased asset. When a lease modification fully or partially terminates an existing lease, the lease liability and ROU asset on modification date is remeasured for the reduction in lease payments. |
Accounting Standards and Sign_3
Accounting Standards and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | For the transition, we elected not to restate prior period comparatives presented in the unaudited condensed consolidated financial statements with the cumulative effect to the unaudited condensed consolidated balance sheets as follows (in thousands): Balance as of December 31, 2018 Adjustments Due to Adoption of Topic 842 Balance as of January 1, 2019 Assets Deferred contract costs, prepaid expenses and other current assets $ 90,761 $ 2,760 $ 93,521 Total current assets 1,109,723 2,760 1,112,483 Deferred contract costs and other assets, net 129,108 54,826 183,934 Total assets $ 1,920,717 $ 57,586 $ 1,978,303 Liabilities Accrued expenses and other liabilities $ 154,383 $ 15,911 $ 170,294 Total current liabilities 415,684 15,911 431,595 Deferred rent 8,472 (8,472 ) — Other long-term liabilities 5,739 50,147 55,886 Total liabilities 1,075,739 57,586 1,133,325 Stockholders' Equity Total stockholders' equity $ 844,978 $ — 844,978 Total liabilities and stockholders' equity $ 1,920,717 $ 57,586 $ 1,978,303 |
Funds held for Customers, Cor_2
Funds held for Customers, Corporate Investments in Marketable Securities and Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 are shown below (in thousands): As of March 31, 2019 As of December 31, 2018 Amortized Cost Net Unrealized Gain 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 $ 1,093,277 $ — $ 1,093,277 $ 333,942 $ — $ 333,942 Available-for-sale securities: Corporate debentures – bonds 1,399 1 1,400 4,469 (2 ) 4,467 Commercial paper 850 — 850 2,687 — 2,687 U.S. Agency bonds 283,962 882 284,844 284,099 165 284,264 U.S. Treasury bills 749 — 749 2,240 — 2,240 Asset-Backed securities 449 — 449 1,348 (1 ) 1,347 Total corporate investments and funds held for customers $ 1,380,686 $ 883 $ 1,381,569 $ 628,785 $ 162 $ 628,947 _________________ (1) Included within available-for-sale securities as of March 31, 2019 and December 31, 2018 are corporate investments with fair values of $3.4 million and $10.7 million , respectively. Included within available-for-sale securities as of March 31, 2019 and December 31, 2018 are funds held for customers with fair values of $284.8 million and $284.3 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 | 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, 2019 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 $ — $ — $ — $ — $ — $ — U.S. Agency bonds (1 ) 17,240 (12 ) 15,953 (13 ) 33,193 U.S. Treasury bills — — — — — — Asset-Backed securities — — — — — — Total $ (1 ) $ 17,240 $ (12 ) $ 15,953 $ (13 ) $ 33,193 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, 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 ) $ 3,521 $ — $ — $ (2 ) $ 3,521 U.S. Agency bonds (39 ) 14,957 (133 ) 45,246 (172 ) 60,203 U.S. Treasury bills — 2,239 — — — 2,239 Asset-Backed securities (1 ) 1,347 — — (1 ) 1,347 Total $ (42 ) $ 22,064 $ (133 ) $ 45,246 $ (175 ) $ 67,310 |
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, 2019 , 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 $ 3,447 $ 3,448 $ 230,198 $ 230,891 $ 233,645 $ 234,339 Due after one year — — 53,764 53,953 53,764 53,953 Total $ 3,447 $ 3,448 $ 283,962 $ 284,844 $ 287,409 $ 288,292 The amortized cost and fair value of the marketable available-for-sale securities, by contractual maturity, as of December 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 $ 10,743 $ 10,741 $ 185,385 $ 185,361 $ 196,128 $ 196,102 Due after one year — 98,714 98,903 98,714 98,903 Total $ 10,743 $ 10,741 $ 284,099 $ 284,264 $ 294,842 $ 295,005 |
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, 2019 and December 31, 2018 (in thousands): As of March 31, 2019 As of December 31, 2018 Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Corporate debentures – bonds $ 1,400 $ — $ 1,400 $ — $ 4,467 $ — $ 4,467 $ — Commercial paper 850 — 850 — 2,687 — 2,687 — U.S. Agency bonds 284,844 — 284,844 — 284,264 — 284,264 — U.S. Treasury bills 749 — 749 — 2,240 — 2,240 — Asset-Backed securities 449 — 449 — 1,347 — 1,347 — Total $ 288,292 $ — $ 288,292 $ — $ 295,005 $ — $ 295,005 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018 (in thousands): For the Three Months Ended March 31, 2019 2018 Basic weighted average shares outstanding 31,526 30,404 Effect of dilutive equity instruments 614 701 Diluted weighted average shares outstanding 32,140 31,105 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 303 — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 ("SBC") 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, 2019 2018 Non-cash stock-based compensation expense: Cost of recurring revenues $ 5,475 $ 3,432 Cost of services revenues 2,887 2,373 Sales and marketing 19,024 16,338 Research and development 4,701 3,309 General and administrative 6,071 7,745 Total non-cash stock-based compensation expense $ 38,158 $ 33,197 |
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, 2019 and March 31, 2018 (in thousands): For the Three Months Ended March 31, 2019 2018 Restricted Stock Awards: Non-Employee Directors 2 2 Senior Officers 195 200 Total Restricted Stock Awards Granted 197 202 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 327 296 Total Restricted Stock Unit Awards Granted 327 296 |
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, 2019 and March 31, 2018 (in thousands): For the Three Months Ended March 31, 2019 2018 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 1 — $ — 1 2 — $ — 2 Senior Officers 302 114 38.1 188 396 150 34.0 246 Non-Senior Officers and Other Employees — — 0.0 — 5 2 0.0 3 Total Restricted Stock Awards 303 114 $ 38.1 189 403 152 $ 34.0 251 Restricted Stock Unit Awards: Non-Senior Officers and Other Employees 248 85 $ 28.0 163 208 70 $ 16.0 137 Total Restricted Stock Unit Awards 248 85 $ 28.0 163 208 70 $ 16.0 137 ______________________________ (1) During the three months ended March 31, 2019 and March 31, 2018, of the shares released, 198,943 and 221,891 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, 2019 (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, 2018 686 $ 207.25 751 $ 220.52 Granted 197 332.41 327 332.41 Vested and released (303 ) 187.53 (248 ) 197.00 Forfeited or expired — — (6 ) 261.30 Outstanding at March 31, 2019 580 $ 260.09 824 $ 271.75 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Assets And Liabilities, Lessee | The short-term and long term-portions of finance lease liabilities are separate lines items presented in the unaudited condensed consolidated balance sheet. Below are the ROU asset and lease liability balances as of March 31, 2019 (in thousands): As of March 31, 2019 Finance Leases Operating Leases Right-of-use assets $ 19,255 $ 65,945 Short-term portion of lease liabilities $ 8,142 $ 19,668 Long-term portion of lease liabilities 7,136 60,497 Total lease liabilities $ 15,278 $ 80,165 |
Lease, Cost | Below is disaggregated quantitative information (in thousands) of our total lease cost including the amounts recognized in profit and loss and the cash flows arising from lease transactions. For the Three Months Ended March 31, 2019 Finance lease cost: Amortization of right-of-use assets $ 1,632 Interest on lease liabilities 119 Operating lease cost 4,464 Total lease cost $ 6,215 Other Information Cash paid in the period for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 5,136 Operating cash outflows from finance leases 1,817 Financing cash flows from finance leases 2,247 Right-of-use assets obtained in the period in exchange for lease liabilities: Right-of-use assets for finance leases $ 5,300 Right-of-use assets for operating leases 14,793 |
Finance Lease, Liability, Maturity | The weighted average lease term, future leases costs and effects of discounting on operating and finance leases are as follows: Finance Leases Operating Leases Weighted-average remaining lease term in years 2.18 5.63 Future lease costs (in thousands) Twelve months ending March 31, 2020 $ 8,552 $ 20,022 2021 6,312 19,048 2022 3,355 17,300 2023 160 12,417 2024 — 8,246 Thereafter — 20,261 Total future lease costs 18,379 97,294 Less: effects of discounting future lease costs 3,101 17,129 Recognized lease liability as of March 31, 2019 $ 15,278 $ 80,165 Weighted-average discount rate 5.22 % 4.92 % |
Lessee, Operating Lease, Liability, Maturity | The weighted average lease term, future leases costs and effects of discounting on operating and finance leases are as follows: Finance Leases Operating Leases Weighted-average remaining lease term in years 2.18 5.63 Future lease costs (in thousands) Twelve months ending March 31, 2020 $ 8,552 $ 20,022 2021 6,312 19,048 2022 3,355 17,300 2023 160 12,417 2024 — 8,246 Thereafter — 20,261 Total future lease costs 18,379 97,294 Less: effects of discounting future lease costs 3,101 17,129 Recognized lease liability as of March 31, 2019 $ 15,278 $ 80,165 Weighted-average discount rate 5.22 % 4.92 % |
Nature of Operations (Details)
Nature of Operations (Details) | Mar. 31, 2019employeecountrylanguage |
Nature of Operations [Line Items] | |
Number of languages in which product solution available | language | 14 |
Number of country-specific localizations | country | 61 |
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 |
Accounting Standards and Sign_4
Accounting Standards and Significant Accounting Policies - Leases (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Deferred contract costs, prepaid expenses and other current assets | $ 110,155,000 | $ 93,521,000 | $ 90,761,000 | ||
Total current assets | 1,839,799,000 | 1,112,483,000 | 1,109,723,000 | ||
Deferred contract costs and other assets, net | 201,056,000 | 183,934,000 | 129,108,000 | ||
Total assets | 2,716,271,000 | 1,978,303,000 | 1,920,717,000 | ||
Accrued expenses and other liabilities | 143,982,000 | 170,294,000 | 154,383,000 | ||
Total Current Liabilities Before Customer Funds Obligations | 418,168,000 | 431,595,000 | 415,684,000 | ||
Deferred rent | 0 | 0 | 8,472,000 | ||
Finance lease obligations | 7,136,000 | 55,886,000 | 5,739,000 | ||
Total liabilities | 1,889,921,000 | 1,133,325,000 | 1,075,739,000 | ||
Total stockholders’ equity | 826,349,000 | 844,978,000 | 844,978,000 | $ 540,647,000 | $ 518,025,000 |
Total liabilities and stockholders’ equity | 2,716,270,000 | $ 1,978,303,000 | 1,920,717,000 | ||
Finance Lease, right-of-use asset, amortization | 1,632,000 | ||||
Accounting Standards Update 2016-02 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Deferred contract costs, prepaid expenses and other current assets | 2,760,000 | ||||
Total current assets | 2,760,000 | ||||
Deferred contract costs and other assets, net | 54,826,000 | ||||
Total assets | 57,586,000 | ||||
Accrued expenses and other liabilities | 15,911,000 | ||||
Total Current Liabilities Before Customer Funds Obligations | 15,911,000 | ||||
Deferred rent | (8,472,000) | ||||
Finance lease obligations | 50,147,000 | ||||
Total liabilities | 57,586,000 | ||||
Total stockholders’ equity | 0 | ||||
Total liabilities and stockholders’ equity | $ 57,586,000 | ||||
Minimum | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Finance Lease, right-of-use asset, amortization | 3 | ||||
Maximum | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Finance Lease, right-of-use asset, amortization | $ 5 |
Funds held for Customers, Cor_3
Funds held for Customers, Corporate Investments in Marketable Securities and Fair Value of Financial Instruments - Amortized Cost to Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Funds held for customers – money market securities and other cash equivalents | $ 1,093,277 | $ 333,942 |
Net Unrealized Gain | 883 | 162 |
Fair Value | 288,292 | 295,005 |
Total corporate investments and funds held for clients - amortized cost basis | 1,380,686 | 628,785 |
Total corporate investments and funds held for clients - fair value | 1,381,569 | 628,947 |
Amortized Cost Basis | ||
Due in one year or less | 233,645 | 196,128 |
Due after one year | 53,764 | 98,714 |
Total | 287,409 | 294,842 |
Fair Value | ||
Due in one year or less | 234,339 | 196,102 |
Due after one year | 53,953 | 98,903 |
Total | 288,292 | 295,005 |
Corporate debentures and bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,399 | 4,469 |
Net Unrealized Gain | 1 | (2) |
Fair Value | 1,400 | 4,467 |
Fair Value | ||
Total | 1,400 | 4,467 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 850 | 2,687 |
Net Unrealized Gain | 0 | 0 |
Fair Value | 850 | 2,687 |
Fair Value | ||
Total | 850 | 2,687 |
U.S. Agency bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 283,962 | 284,099 |
Net Unrealized Gain | 882 | 165 |
Fair Value | 284,844 | 284,264 |
Fair Value | ||
Total | 284,844 | 284,264 |
U.S. Treasury bills | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 749 | 2,240 |
Net Unrealized Gain | 0 | 0 |
Fair Value | 749 | 2,240 |
Fair Value | ||
Total | 749 | 2,240 |
Asset-Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 449 | 1,348 |
Net Unrealized Gain | 0 | (1) |
Fair Value | 449 | 1,347 |
Fair Value | ||
Total | 449 | 1,347 |
Corporate Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 3,448 | 10,741 |
Amortized Cost Basis | ||
Due in one year or less | 3,447 | 10,743 |
Due after one year | 0 | 0 |
Total | 3,447 | 10,743 |
Fair Value | ||
Due in one year or less | 3,448 | 10,741 |
Due after one year | 0 | |
Total | 3,448 | 10,741 |
Investments with Funds Held for Customers | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 284,844 | 284,264 |
Amortized Cost Basis | ||
Due in one year or less | 230,198 | 185,385 |
Due after one year | 53,764 | 98,714 |
Total | 283,962 | 284,099 |
Fair Value | ||
Due in one year or less | 230,891 | 185,361 |
Due after one year | 53,953 | 98,903 |
Total | $ 284,844 | $ 284,264 |
Funds held for Customers, Cor_4
Funds held for Customers, Corporate Investments in Marketable Securities and Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross unrealized losses | $ (1) | $ (42) |
Fair market value | 17,240 | 22,064 |
Gross unrealized losses | (12) | (133) |
Fair market value | 15,953 | 45,246 |
Gross unrealized losses | (13) | (175) |
Fair market value | 33,193 | 67,310 |
Corporate debentures – bonds | 1,400 | 4,467 |
Commercial paper | 850 | 2,687 |
U.S. Agency bonds | 284,844 | 284,264 |
U.S. Treasury bills | 749 | 2,240 |
Asset-Backed securities | 449 | 1,347 |
Total | 288,292 | 295,005 |
(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 | 1,400 | 4,467 |
Commercial paper | 850 | 2,687 |
U.S. Agency bonds | 284,264 | |
U.S. Treasury bills | 749 | 2,240 |
Asset-Backed securities | 449 | 1,347 |
Total | 288,292 | 295,005 |
(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 | 0 | (2) |
Fair market value | 0 | 3,521 |
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | 0 | (2) |
Fair market value | 0 | 3,521 |
Total | 1,400 | 4,467 |
U.S. Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross unrealized losses | (1) | (39) |
Fair market value | 17,240 | 14,957 |
Gross unrealized losses | (12) | (133) |
Fair market value | 15,953 | 45,246 |
Gross unrealized losses | (13) | (172) |
Fair market value | 33,193 | 60,203 |
Total | 284,844 | 284,264 |
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 | 2,239 |
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 2,239 |
Total | 749 | 2,240 |
Asset-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross unrealized losses | 0 | (1) |
Fair market value | 0 | 1,347 |
Gross unrealized losses | 0 | 0 |
Fair market value | 0 | 0 |
Gross unrealized losses | 0 | (1) |
Fair market value | 0 | 1,347 |
Total | $ 449 | $ 1,347 |
Earnings Per Share (Details)
Earnings Per Share (Details) - $ / shares shares in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Basic weighted average shares outstanding (in shares) | 31,526 | 30,404 | |
Effect of dilutive equity instruments (in shares) | 614 | 701 | |
Diluted weighted average shares outstanding (in shares) | 32,140 | 31,105 | |
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) | 303 | 0 |
Foreign Currency (Details)
Foreign Currency (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Foreign Currency [Abstract] | ||
Cumulative unrealized translation losses | $ 19.7 | $ 14.3 |
Unrealized translation loss included in accumulated other comprehensive income | $ 19.5 | $ 14.6 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations - Revenue recognized (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 175.2 | $ 144.1 |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations (Details) $ in Billions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation expected to be satisfied | $ 2 |
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 | 46.00% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | $ 38,158 | $ 33,197 |
Total non-cash stock-based compensation expense | 39,300 | 34,200 |
Cost of recurring revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 5,475 | 3,432 |
Cost of services revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 2,887 | 2,373 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 19,024 | 16,338 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | 4,701 | 3,309 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Non-cash stock-based compensation expense | $ 6,071 | 7,745 |
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) | 1,386,928 | |
Internal Use Software | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total non-cash stock-based compensation expense | $ 1,100 | $ 1,000 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Awards Vested (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount Retained | $ 66,131 | $ 50,338 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 197 | 202 |
Shares Vested (in shares) | 303 | 403 |
Shares Retained (in shares) | 114 | 152 |
Amount Retained | $ 38,100 | $ 34,000 |
Shares Issued (in shares) | 189 | 251 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 327 | 296 |
Shares Vested (in shares) | 248 | 208 |
Shares Retained (in shares) | 85 | 70 |
Amount Retained | $ 28,000 | $ 16,000 |
Shares Issued (in shares) | 163 | 137 |
Non-Employee Directors | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 2 | 2 |
Shares Vested (in shares) | 1 | 2 |
Shares Retained (in shares) | 0 | 0 |
Amount Retained | $ 0 | $ 0 |
Shares Issued (in shares) | 1 | 2 |
Senior Officers | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 195 | 200 |
Shares Vested (in shares) | 302 | 396 |
Shares Retained (in shares) | 114 | 150 |
Amount Retained | $ 38,100 | $ 34,000 |
Shares Issued (in shares) | 188 | 246 |
Non-Senior Officers and Other Employees | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Vested (in shares) | 0 | 5 |
Shares Retained (in shares) | 0 | 2 |
Amount Retained | $ 0 | $ 0 |
Shares Issued (in shares) | 0 | 3 |
Non-Senior Officers and Other Employees | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 327 | 296 |
Shares Vested (in shares) | 248 | 208 |
Shares Retained (in shares) | 85 | 70 |
Amount Retained | $ 28,000 | $ 16,000 |
Shares Issued (in shares) | 163 | 137 |
Stock-Based Compensation - Awar
Stock-Based Compensation - Award Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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) | 686 | |
Granted (in shares) | 197 | 202 |
Vested and Released (in shares) | (303) | (403) |
Forfeited or expired (in shares) | 0 | |
Outstanding at end of period (in shares) | 580 | |
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) | $ 207.25 | |
Granted (in dollars per share) | 332.41 | |
Vested and Released (in dollars per share) | 187.53 | |
Forfeited or expired (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | $ 260.09 | |
Total unrecognized compensation costs | $ 132.5 | |
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) | 751 | |
Granted (in shares) | 327 | 296 |
Vested and Released (in shares) | (248) | (208) |
Forfeited or expired (in shares) | (6) | |
Outstanding at end of period (in shares) | 824 | |
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) | $ 220.52 | |
Granted (in dollars per share) | 332.41 | |
Vested and Released (in dollars per share) | 197 | |
Forfeited or expired (in dollars per share) | 261.30 | |
Outstanding at end of period (in dollars per share) | $ 271.75 | |
Total unrecognized compensation costs | $ 187.9 |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Finance lease, right-of-use asset | $ 19,255 | ||
Finance lease, short-term portion of lease liabilities | 8,142 | $ 6,303 | |
Finance lease, long-term portion of lease liabilities | 7,136 | $ 55,886 | $ 5,739 |
Finance lease, total lease liabilities | 15,278 | ||
Operating lease, right-of-use assets | 65,945 | ||
Operating lease, short-term portion of lease liabilities | 19,668 | ||
Operating lease, long-term portion of lease liabilities | 60,497 | ||
Operating lease, total lease liabilities | $ 80,165 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of right-of-use assets | $ 1,632 |
Interest on lease liabilities | 119 |
Operating lease cost | 4,464 |
Total lease cost | 6,215 |
Operating cash outflows from operating leases | 5,136 |
Operating cash outflows from finance leases | 1,817 |
Financing cash flows from finance leases | 2,247 |
Right-of-use assets for finance leases | 5,300 |
Right-of-use assets for operating leases | $ 14,793 |
Leases - Maturities (Details)
Leases - Maturities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance Leases | |
Weighted-average remaining lease term in years | 2 years 2 months 5 days |
2020 | $ 8,552 |
2021 | 6,312 |
2022 | 3,355 |
2023 | 160 |
2024 | 0 |
Thereafter | 0 |
Total future lease costs | 18,379 |
Less: effects of discounting future lease costs | 3,101 |
Recognized lease liability as of March 31, 2019 | $ 15,278 |
Weighted-average discount rate | 5.22% |
Operating Leases | |
Weighted-average remaining lease term in years | 5 years 7 months 17 days |
2020 | $ 20,022 |
2021 | 19,048 |
2022 | 17,300 |
2023 | 12,417 |
2024 | 8,246 |
Thereafter | 20,261 |
Total future lease costs | 97,294 |
Less: effects of discounting future lease costs | 17,129 |
Recognized lease liability as of March 31, 2019 | $ 80,165 |
Weighted-average discount rate | 4.92% |
Subsequent Events (Details)
Subsequent Events (Details) - Hellman & Friedman - Merger Agreement To Be Acquired $ / shares in Units, $ in Billions | Feb. 04, 2019USD ($)$ / shares |
Subsequent Event [Line Items] | |
Disposal group, including discontinued operation, consideration | $ | $ 11 |
Disposal group, including discontinued operation, consideration, price per share (in dollars per share) | $ / shares | $ 331.50 |