Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FNGN | ||
Entity Registrant Name | FINANCIAL ENGINES, INC. | ||
Entity Central Index Key | 1,430,592 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 63,061,372 | ||
Entity Public Float | $ 911,886,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets: | |||
Cash and cash equivalents | $ 224,543 | $ 134,246 | |
Accounts receivable, net of allowances of $206 and $172 as of December 31, 2016 and 2017, respectively | 116,116 | 103,256 | |
Prepaid expenses | 9,159 | 7,370 | |
Other current assets | 4,501 | 3,468 | |
Total current assets | 354,319 | 248,340 | |
Property and equipment, net | 25,880 | 24,532 | |
Intangible assets, net | 198,045 | 205,751 | |
Goodwill | [1] | 312,020 | 312,020 |
Long-term deferred tax assets | 28,801 | 40,504 | |
Direct response advertising, net | 4,653 | 5,849 | |
Other assets | 2,184 | 3,140 | |
Total assets | 925,902 | 840,136 | |
Current liabilities: | |||
Accounts payable | 29,993 | 36,780 | |
Accrued compensation | 28,519 | 27,667 | |
Deferred revenue | 4,204 | 4,701 | |
Dividend payable | 4,411 | 4,350 | |
Other current liabilities | 2,457 | 4,343 | |
Total current liabilities | 69,584 | 77,841 | |
Long-term deferred rent | 10,720 | 12,269 | |
Long-term tax liabilities | 2,207 | ||
Other liabilities | 459 | 488 | |
Total liabilities | 80,763 | 92,805 | |
Contingencies (see note 9) | |||
Stockholders’ equity: | |||
Preferred stock, $0.0001 par value — 10,000 authorized as of December 31, 2016 and 2017; None issued or outstanding as of December 31, 2016 and 2017 | |||
Common stock, $0.0001 par value — 500,000 authorized as of December 31, 2016 and 2017; 63,476 and 64,725 shares issued and 62,199 and 63,049 shares outstanding at December 31, 2016 and 2017, respectively | 6 | 6 | |
Additional paid-in capital | 838,461 | 782,079 | |
Treasury stock, at cost (1,277 shares and 1,677 as of December 31, 2016 and 2017, respectively) | (58,437) | (47,637) | |
Retained Earnings | 65,109 | 12,883 | |
Total stockholders’ equity | 845,139 | 747,331 | |
Total liabilities and stockholders’ equity | $ 925,902 | $ 840,136 | |
[1] | There is no accumulated impairment of goodwill for the periods presented. There were no adjustments to goodwill for the year ended December 31, 2017. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 172 | $ 206 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 64,725,439 | 63,476,000 |
Common stock, shares outstanding | 63,048,801 | 62,199,000 |
Treasury stock, shares | 1,677,000 | 1,277,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Professional management | $ 450,320 | $ 385,944 | $ 277,162 |
Platform | 26,558 | 28,366 | 30,766 |
Other | 3,628 | 9,627 | 2,794 |
Total revenue | 480,506 | 423,937 | 310,722 |
Costs and expenses: | |||
Cost of revenue | 212,924 | 186,009 | 131,011 |
Research and development | 44,018 | 37,983 | 35,581 |
Sales and marketing | 80,888 | 84,068 | 61,262 |
General and administrative | 39,696 | 46,497 | 28,813 |
Amortization of intangible assets, including internal use software | 17,028 | 15,408 | 4,900 |
Loss on reacquired franchisee rights | 4,092 | ||
Total costs and expenses | 394,554 | 374,057 | 261,567 |
Income from operations | 85,952 | 49,880 | 49,155 |
Interest income, net | 1,167 | 176 | 356 |
Other expense, net | (508) | (784) | (30) |
Income before income taxes | 86,611 | 49,272 | 49,481 |
Income tax expense | 39,951 | 20,712 | 17,864 |
Net and comprehensive income | $ 46,660 | $ 28,560 | $ 31,617 |
Dividends declared per share of common stock | $ 0.28 | $ 0.28 | $ 0.28 |
Net income per share attributable to holders of common stock | |||
Basic | 0.74 | 0.47 | 0.61 |
Diluted | $ 0.72 | $ 0.46 | $ 0.60 |
Shares used to compute net income per share attributable to holders of common stock | |||
Basic | 62,952 | 60,962 | 51,732 |
Diluted | 64,605 | 62,103 | 53,039 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock [Member] | Additional paid-in capital [Member] | Treasury Stock [Member] | Retained Earnings (Accumulated deficit) [Member] |
Beginning Balance at Dec. 31, 2014 | $ 380,211 | $ 5 | $ 404,908 | $ (9,182) | $ (15,520) |
Beginning Balance (in shares) at Dec. 31, 2014 | 52,223,545 | (280,000) | |||
Issuance of common stock upon exercise of options, net | $ 9,201 | 9,201 | |||
Issuance of common stock upon exercise of options, net (in shares) | 546,511 | 546,511 | |||
Vested restricted stock units converted to shares | 302,617 | ||||
Net share settlements for stock-based minimum tax withholdings | $ (3,514) | (3,514) | |||
Net share settlements for stock-based minimum tax withholdings, shares | (100,337) | ||||
Repurchases of common stock | $ (38,455) | $ (38,455) | |||
Repurchases of common stock, shares | (997,000) | (997,000) | |||
Stock-based compensation under the fair value method | $ 26,213 | 26,213 | |||
Cash dividends declared per share (2015 - $0.28 ,2016 - $0.28 ,2017 -0.28) | (14,457) | (14,457) | |||
Excess tax benefit associated with stock-based compensation | 24,331 | 24,331 | |||
Net and comprehensive income | 31,617 | 31,617 | |||
Ending Balance at Dec. 31, 2015 | 415,147 | $ 5 | 461,139 | $ (47,637) | 1,640 |
Ending Balance (in shares) at Dec. 31, 2015 | 52,972,336 | (1,277,000) | |||
Issuance of common stock upon exercise of options, net | $ 6,625 | 6,625 | |||
Issuance of common stock upon exercise of options, net (in shares) | 404,208 | 404,208 | |||
Issuance of common stock related to business combination | $ 267,018 | $ 1 | 267,017 | ||
Issuance of common stock related to business combination, shares | 9,885,889 | ||||
Vested restricted stock units converted to shares | 317,497 | ||||
Net share settlements for stock-based minimum tax withholdings | (3,336) | (3,336) | |||
Net share settlements for stock-based minimum tax withholdings, shares | (104,109) | ||||
Stock-based compensation under the fair value method | 33,988 | 33,988 | |||
Cash dividends declared per share (2015 - $0.28 ,2016 - $0.28 ,2017 -0.28) | (17,317) | (17,317) | |||
Excess tax benefit associated with stock-based compensation | 16,646 | 16,646 | |||
Net and comprehensive income | 28,560 | 28,560 | |||
Ending Balance at Dec. 31, 2016 | 747,331 | $ 6 | 782,079 | $ (47,637) | 12,883 |
Ending Balance (in shares) at Dec. 31, 2016 | 63,475,821 | (1,277,000) | |||
Issuance of common stock upon exercise of options, net | $ 22,424 | 22,424 | |||
Issuance of common stock upon exercise of options, net (in shares) | 933,245 | 933,245 | |||
Vested restricted stock units converted to shares | 473,569 | ||||
Net share settlements for stock-based minimum tax withholdings | $ (5,638) | (5,638) | |||
Net share settlements for stock-based minimum tax withholdings, shares | (157,196) | ||||
Repurchases of common stock | (10,800) | $ (10,800) | |||
Repurchases of common stock, shares | (399,638) | ||||
Stock-based compensation under the fair value method | 36,819 | 36,819 | |||
Cumulative effect on adoption of new accounting standards | 25,992 | 2,777 | 23,215 | ||
Cash dividends declared per share (2015 - $0.28 ,2016 - $0.28 ,2017 -0.28) | (17,649) | (17,649) | |||
Net and comprehensive income | 46,660 | 46,660 | |||
Ending Balance at Dec. 31, 2017 | $ 845,139 | $ 6 | $ 838,461 | $ (58,437) | $ 65,109 |
Ending Balance (in shares) at Dec. 31, 2017 | 64,725,439 | (1,676,638) |
Consolidated Statements of Sto6
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividends per share | $ 0.28 | $ 0.28 | $ 0.28 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 46,660 | $ 28,560 | $ 31,617 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 8,505 | 8,946 | 6,092 |
Amortization of intangible assets | 16,462 | 14,964 | 4,566 |
Stock-based compensation | 36,425 | 33,689 | 26,028 |
Amortization of deferred sales commissions | 1,052 | 1,560 | 1,717 |
Amortization and impairment of direct response advertising | 3,592 | 4,702 | 5,359 |
Amortization of discount on short-term investments | (5) | (359) | |
Provision for doubtful accounts | 678 | 746 | 938 |
Write off of notes receivable | 290 | ||
Deferred tax assets | 36,731 | (1,116) | (9,196) |
Loss on fixed asset disposal | 405 | 281 | 14 |
Loss (gain) on sale of short-term investments | 18 | (9) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (13,539) | (15,250) | (6,225) |
Prepaid expenses | (1,872) | (1,369) | (723) |
Direct response advertising | (2,429) | (3,388) | (4,338) |
Other assets | (2,290) | (1,455) | 1,773 |
Accounts payable | (7,958) | 18,827 | 30,856 |
Accrued compensation | 852 | 4,369 | 6,998 |
Deferred revenue | (557) | (1,768) | 391 |
Deferred rent | (833) | 1,130 | 814 |
Other liabilities | (20) | (526) | |
Net cash provided by operating activities | 121,864 | 93,205 | 96,313 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (8,657) | (7,037) | (6,094) |
Capitalization of internal use software | (8,328) | (6,904) | (5,049) |
Purchases of short-term investments | (159,555) | ||
Maturities of short-term investments | 180,000 | ||
Sale of short-term investments | 39,923 | 119,872 | |
Cash paid for acquisitions, net of cash acquired | (274,569) | ||
Net cash provided (used in) by investing activities | (16,985) | (248,587) | 129,174 |
Cash flows from financing activities: | |||
Payments on capital lease obligations | (136) | (106) | (112) |
Payments related to business combinations | (2,845) | (2,189) | |
Net share settlements for stock-based awards minimum tax withholdings | (5,638) | (3,336) | (3,514) |
Repurchase of common stock | (10,800) | (38,455) | |
Proceeds from issuance of common stock | 22,424 | 6,625 | 9,201 |
Cash dividend payments | (17,587) | (16,582) | (13,955) |
Net cash used in financing activities | (14,582) | (15,588) | (46,835) |
Net increase (decrease) in cash and cash equivalents | 90,297 | (170,970) | 178,652 |
Cash and cash equivalents, beginning of year | 134,246 | 305,216 | 126,564 |
Cash and cash equivalents, end of year | 224,543 | 134,246 | 305,216 |
Supplemental cash flows information: | |||
Income taxes paid, net of refunds | 7,832 | 3,336 | 1,584 |
Interest paid | 65 | 13 | 13 |
Non-cash operating, investing and financing activities: | |||
Issuance of common stock related to acquisition | 267,018 | ||
Unpaid purchases of property and equipment | 1,365 | 173 | 574 |
Purchase of property and equipment with non-cash tenant improvement allowance | 187 | 1,952 | |
Purchase of property and equipment under capital lease | 243 | 216 | |
Capitalized stock-based compensation for internal use software | 994 | 766 | 515 |
Capitalized stock-based compensation for direct response advertising | 56 | 79 | 97 |
Dividends declared but not yet paid | $ 4,411 | $ 4,350 | $ 3,615 |
Organization and Description of
Organization and Description of the Business | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of the Business | NOTE 1 — Organization and Description of the Business The Company Financial Engines, Inc. (the Company) was incorporated on May 13, 1996 under the laws of the State of California and is headquartered in Sunnyvale, California. In February 2010, the Company was reincorporated under the laws of the State of Delaware. The Company is a leading provider of independent, technology-enabled comprehensive financial advisory services, discretionary portfolio management, personalized investment advice, financial and retirement income planning, financial education and guidance. The Company helps individuals, either online or with an advisor, develop a strategy to reach financial goals by offering a comprehensive set of services, including holistic, personalized plans for saving and investing, assessments of retirement income, and the option to meet face-to-face with a dedicated financial advisor at one of more than 140 The Company’s business model of comprehensive financial planning is based primarily on providing access to its advisory services through DC plans in the workplace, and expanding that connection to a holistic financial advisory relationship with our clients. The Company also provides advisory services to individual clients who access our services directly. Clients are defined as individuals who utilize our services, including Professional Management, Personal Advisor, Online Advice, education or guidance. The Company works with three key constituencies: individual investors, plan sponsors (employers offering DC plans to their employees) and plan providers (companies providing administrative services to plan sponsors). The Company’s investment advisory and management services are provided through its subsidiary, Financial Engines Advisors L.L.C., a federally registered investment adviser. In February 2016, the Company completed the acquisition of Kansas City 727 Acquisition LLC, a Delaware |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | NOTE 2 — Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The accompanying consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates 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, the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant items subject to such estimates include stock-based compensation, direct response advertising, the fair value of acquired assets and assumed liabilities, internal use software, income taxes and goodwill, intangible assets and property, plant and equipment. Actual results could differ from those estimates under different assumptions or conditions. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Cash and cash equivalents are comprised of cash held primarily in money market funds. Concentration of Credit Risk and Fair Value of Financial Instruments The Company measures and reports its investments in money market funds at fair value on a recurring basis, which approximates their carrying value due to the short period of time to maturity as of December 31, 2016 and 2017. There have been no changes in the Company’s valuation techniques during the years ended December 31, 2016 and 2017. The money market funds are classified as Level 1. The following table summarizes the Company’s financial assets measured at fair value on a recurring basis: As of December 31, 2016 As of December 31, 2017 Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) (In thousands) Assets: Money Market Funds $ 50,077 $ 50,077 $ - $ - $ 215,572 $ 215,572 $ - $ - (1) Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. (2) Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. (3) Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents primarily in highly-rated taxable money market funds which hold securities issued or guaranteed by the United States government or their agencies. These deposits may exceed federal deposit insurance limits. The fair value of the Company’s money market funds is based on a trade date basis on the last business day of the accounting period. The fair value of the Company’s accounts receivable and accounts payable approximates the carrying amount due to their short duration. The Company’s customers are concentrated in the United States. The Company performs ongoing credit evaluations of its customers and does not require collateral. The Company reviews the need for allowances for potential credit losses and such losses have been insignificant to date. Significant Customer Information One customer accounted for 10% of the Company’s accounts receivable as of December 31, 2017, and this same customer accounted for 10% of the Company’s total revenue for the years ended December 31, 2015 and 2017. No customers accounted for 10% or more of accounts receivable as of December 31, 2016 or total revenue for the year ended December 31, 2016. Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and are not interest bearing. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible trade receivables. The Company reviews its trade receivables by aging category to identify significant customers with collection issues. For accounts not specifically identified, the Company provides reserves based on historical bad debt loss experience. The allowance for doubtful accounts were immaterial for the years ended December 31, 2015, 2016 and 2017. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets and allocated to the department of benefit in the accompanying Consolidated Statements of Income. Leasehold improvements and capital lease equipment are amortized over the shorter of the remaining lease term or the useful life of the asset. Software purchased for internal use is amortized over its useful life. Expenditures for maintenance and repairs are charged to expense as incurred. Estimated Useful Lives in Years Computer equipment 3 Computer software 2 Furniture, fixtures, and equipment 5 Leasehold improvements life of the lease Capital lease equipment life of the lease Internal Use Software Certain direct development costs associated with internal use software are capitalized and include payroll costs for employees and external direct consulting costs related to software coding, designing system interfaces, and installation and testing of the software. Internal use software includes engineering costs associated with (1) enhancing the Company’s advisory service platform and (2) developing internal systems for tracking member data, including AUM, member cancellations and other related member statistics. The capitalized costs are amortized using the straight-line method over an estimated life of approximately two to four years, beginning when the asset is substantially ready for use. Costs related to preliminary project activities and post implementation activities are expensed as incurred. A portion of internal use software relates to cost of revenue, as well as the Company’s other functional departments. However the Company is not able to meaningfully allocate the costs among cost of revenue and operations. Accordingly, amortization is presented within amortization of intangible assets on the accompanying Consolidated Statements of Income. Business Combinations The Company accounts for business combinations under the acquisition method. The cost of an acquired company is assigned to the tangible and intangible assets acquired and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires management to make estimates and use valuation techniques when market values are not readily available. Any excess of the aggregate purchase price over the fair value of net tangible and identifiable intangible assets acquired is allocated to goodwill. Transaction costs associated with business combinations are expensed as incurred. Goodwill and Intangible Assets Goodwill consists of the excess of the aggregate purchase price over the fair value of net tangible and identifiable intangible assets acquired by the Company. The carrying amount of goodwill is tested for impairment each year in the fourth quarter, or more frequently if facts and circumstances warrant a review, by using a two-step process. The Company has concluded that it has a single reporting unit for the purpose of goodwill impairment testing, and accordingly, all goodwill resides within a single reporting unit. The Company compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, the Company would perform a measurement of the amount of impairment by comparing the carrying amount of the goodwill to a determination of the implied fair value of the goodwill. If the carrying amount of the goodwill is greater than the implied value, an impairment loss is recognized for the difference. There have been no goodwill impairment losses to date. The Company does not have any indefinite lived intangible assets besides goodwill. Intangible assets with definite useful lives are recorded at their acquired value less accumulated amortization. Intangible assets are reviewed for impairment whenever events or changes in circumstances raise doubt about recoverability of the net assets. Such reviews include an analysis of current results and take into consideration the undiscounted value of projected operating cash flows. There were no impairments or changes in useful lives of acquired intangible assets during the periods presented. Intangible assets consist primarily of customer relationships, trademarks, trade names, internal use software and reacquired franchisee rights. These intangible assets are acquired through business combinations or, in the case of capitalized software costs, are internally developed. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from 1 year to 20 years. Long-Lived Assets Long-lived assets, such as property, equipment, direct response advertising and intangible assets, including capitalized internal use software, subject to depreciation and amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or an asset group may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability by determining whether the carrying value of such assets or asset group will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows of the assets or asset group are less than their carrying amount, the Company would recognize an impairment loss based on any excess of the carrying amount of the asset or asset group over their fair value. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Impairments to long-lived assets were immaterial during the periods presented. Deferred Sales Commissions Deferred sales commissions consist of incremental costs paid to the Company’s sales force associated with the execution of customer contracts. The deferred sales commission amounts are recoverable through future revenue streams under the customer contracts. The Company believes this is the preferable method of accounting as the commission charges are so closely related to the revenue from the customer contracts that they should be recorded as an asset and charged to expense over the initial term of the related customer contracts, which is typically three to five years. Amortization of deferred sales commissions is included in sales and marketing expense in the accompanying Consolidated Statements of Income. Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income is the same as net income for all periods presented. Segment Information The Company’s chief operating decision-maker, its chief executive officer, reviews the Company’s operating results on an aggregate, consolidated basis and manages its operations as a single operating segment. In addition, all of the Company’s operations and assets are based in the United States. Revenue Recognition The Company recognizes revenue when all of the following conditions are met: • There is persuasive evidence of an arrangement, as evidenced by a signed contract; • Delivery has occurred or the service has been made available to the customer, which occurs upon completion of implementation and connectivity services, if applicable, and acceptance by the customer; • The collectability of the fees is reasonably assured; and • The amount of fees to be paid by the customer is fixed or determinable. The Company generates its revenue through three primary sources: professional management, platform and other revenue. Professional Management. The Company derives professional management revenue from client fees paid by or on behalf of both DC and individual investor clients who are enrolled in one of its discretionary portfolio management services (either the Professional Management service or the Personal Advisor service) for the management of their account assets. The Company continues to use the term professional management revenue to include revenue from both the Professional Management and Personal Advisor services. The Company’s Professional Management service is a discretionary personalized portfolio management service for DC participants who want to work with or delegate the management of their retirement accounts to a professional with the help of an advisor team. Personal Advisor is a personalized service that can provide discretionary portfolio management on a client’s 401(k), IRA and/or taxable assets, as well as comprehensive financial planning and a dedicated advisor representative that participants can meet with in person, online or by phone. The Company’s retirement income solutions, including Income+ and Retirement Paycheck, which are features of its Professional Management and Personal Advisor services, respectively, provide clients approaching or in retirement with discretionary portfolio management with an income objective and steady monthly payments from their accounts during retirement, including Social Security claiming guidance and planning. The services are generally made available to prospective clients by written agreements with the plan provider, the plan sponsor and the plan participant in a DC plan (and may be provided on a subadvisory basis) and by written agreements with retail investors. The Company’s arrangements with clients using discretionary portfolio management services generally provide for fees based on the value of assets managed and are generally payable quarterly in arrears. The majority of client fees for DC accounts, for both advisory and subadvisory relationships, are calculated on a monthly basis, as the product of client fee rates and the value of assets under management (AUM) at or near the end of each month. For IRA and taxable accounts, client fees are calculated on a quarterly basis at the end of each quarter. Platform. The Company derives platform revenue from recurring, subscription-based fees for access to its services, including Online Advice, education and guidance, and to a lesser extent, from setup fees. Online Advice is a non-discretionary, Internet-based investment advisory service, which includes personalized online savings and investment advice and retirement income projections for clients who want to manage their retirement themselves. The arrangements generally provide for fees to be paid by the plan sponsor, plan provider or the DC plan itself, depending on the plan structure. Platform revenue is generally paid annually or quarterly in advance and recognized ratably over the term of the subscription period beginning after the completion of customer setup and data connectivity. Setup fees are recognized ratably over seven years and are immaterial for the periods presented. Other. Other revenue includes reimbursement for a portion of marketing and client materials from certain subadvisory relationships. Non-retirement account servicing fees were applicable for the period of February 1, 2016 to December 31, 2016. The fees for non-retirement account servicing do not impact client fees paid for discretionary portfolio management services, and are disclosed in the applicable Form ADV of the Company’s advisory subsidiaries. Franchise royalty fees were applicable for the period of February 1, 2016 to September 30, 2016, as the Company had acquired all remaining franchises as of October 2016. Professional management revenue earned subsequent to the respective acquisition date of the franchises is included in professional management revenue. The franchise royalty fees were recognized as revenue as the services are performed by the franchisees and were based on specified percentages of the franchisees’ advisory fees billed to their clients, which were primarily based on predetermined percentages of the market value of the AUM and were affected by changes in the AUM. Costs associated with reimbursed printed fulfillment materials are expensed to cost of revenue as incurred. Deferred Revenue Deferred revenue consists primarily of billings or payments received in advance of revenue recognition generated by the Company’s platform service and setup fees. For these services, the Company generally invoices its customers in annual or quarterly installments payable in advance. Accordingly, the deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription contracts. Cost of Revenue Cost of revenue includes fees paid to plan providers for connectivity to plan and plan participant data, printed materials fulfillment costs for certain subadvisory relationships for which a portion are reimbursed, printed client materials, and employee-related costs for in-person dedicated advisor centers and call center advisors, operations, implementations, technical operations, portfolio management and client service administration. Costs in this area are related primarily to payments to third parties, employee compensation and related expenses, facilities expenses, purchased materials and depreciation. The expenses included in cost of revenue are shared across the different revenue categories, and the Company is not able to meaningfully allocate such costs between separate categories of revenue. Consequently, all costs and expenses applicable to the Company’s revenue are included in the category cost of revenue in the Consolidated Statements of Income. A portion of the amortization of intangible assets, including internal use software, relates to the Company’s cost of revenue but is reflected together with all amortization of intangible assets as a separate line item in the Company’s Consolidated Statements of Income. Direct Response Advertising The Company’s advertising costs include printed materials associated with new customer solicitations. These costs relate primarily to either active enrollment campaigns, where marketing materials are sent to solicit enrollment in the Company’s Professional Management service, or passive enrollment campaigns, where the plan sponsor defaults all eligible clients into the Professional Management service unless they decline. Advertising costs relating to passive enrollment campaigns and other general marketing materials sent to participants do not qualify as direct response advertising and are expensed to sales and marketing in the period the advertising activities first take place. Printed fulfillment costs relating to subadvisory campaigns do not qualify as direct response advertising and are expensed to cost of revenue in the period in which the expenses were incurred. As campaign materials are modified over time, the Company evaluates the content to ensure it has properly identified those campaigns which qualify for capitalization per the accounting definition of direct-response advertising and expense those campaigns that do not qualify as incurred. Advertising costs associated with direct advisory active enrollment campaigns qualify for capitalization as direct response advertising. The capitalized costs are amortized within sales and marketing expense in the Company’s Consolidated Statements of Income The Company capitalizes direct response advertising costs associated with direct advisory active enrollment campaigns as the Company has sufficient and verifiable historical patterns to demonstrate the probable future benefits of such campaigns. During the years ended December 31, 2015, 2016 and 2017, the Company capitalized $4.4 million, $3.5 million and $2.5 million, respectively, of direct response advertising costs. Advertising expense was $8.2 million, $19.9 million and $21.6 million for the years ended December 31, 2015, 2016 and 2017, respectively, of which direct response advertising amortization and impairment was $5.5 million, $4.8 million and $3.7 million, respectively. During the years ended December 31, 2015, 2016 and 2017, impairment to direct response advertising were immaterial. Advertising expense other than direct response advertising amortization, such as radio and digital advertising, was expensed as incurred. The Company expects direct response advertising costs currently capitalized and amortized for certain printed materials associated with new customer solicitations to be expensed as incurred after adoption of Accounting Standards Update No. (ASU) 2014-09, Revenue from Contracts with Customers, on January 1, 2018. Deferred Income Taxes Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and the tax bases of assets and liabilities. Deferred tax assets are also recognized for tax net operating loss carryforwards. These deferred tax assets and liabilities are measured using the enacted tax rates and laws that are expected to be in effect when such amounts are expected to reverse or be utilized. The realization of total deferred tax assets is contingent upon the generation of future taxable income. Valuation allowances are provided to reduce such deferred tax assets to amounts more likely than not to be ultimately realized. See Note 7 for additional information. Stock-based Compensation Employee stock-based compensation expense is based on the following: (1) the grant date fair value of stock option awards granted or modified after January 1, 2006, and (2) the fair value of the Company’s common stock as of the grant date for restricted stock units (RSUs) and performance stock units (PSUs). The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model. The Company currently uses the simplified method in developing an estimate of expected term of stock options. The expected term represents the period that stock-based awards are expected to be outstanding, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of the Company’s stock-based awards. Prior to 2016, the computation of expected volatility was based on a combination of the historical and implied volatility of comparable companies from a representative peer group based on industry and market capitalization data, as well as the Company’s own historical volatility. Beginning in 2016, the Company began to base expected volatility on its own historical volatility, as it had sufficient exercise history to do so. The Company includes a dividend yield in its Black-Scholes option pricing model to reflect the anticipated dividends to be paid over the expected term of the awards. The Company expenses RSUs over the performance period based on the fair market value of the awards at the date of grant. The Company expenses PSUs based on the fair market value of the awards on the date of grant and the number of shares ultimately expected to vest at the end of each performance period, ratably over the each of the performance periods. Each PSU award consisted of two vesting cliffs. Sixty percent of each award vested on January 1, 2016 and forty percent vested on January 1, 2018. Depending on performance against the target metrics, vesting could be between 0% and 140%. The actual number of shares of common stock issued were determined on each vesting cliff date based on actual performance results against the target metrics. For PSUs, the Company re-assessed the probability of achieving the target metrics at the end of each reporting period and adjusted the recognition of expense accordingly. The Company’s stock-based compensation instruments are accounted for as equity awards as the settlement is in shares of the Company’s common stock. The Company amortizes stock-based compensation expense using a graded vesting method over the requisite service periods of the awards, which is generally the vesting period. Management estimates expected forfeitures and recognizes compensation costs only for those stock-based awards expected to vest. Amortization of stock-based compensation is presented in the same line item as the cash compensation to those employees in the accompanying Consolidated Statements of Income. The Company’s current practice is to issue new shares to settle stock option exercises and on vesting of RSUs and PSUs. Net Income per Common Share Basic net income per common share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period less the weighted average number of common shares repurchased by the Company during the period. Diluted net income per common share is computed by giving effect to all dilutive potential common shares, including options, RSUs, and PSUs. Repurchased shares are held as treasury stock and outstanding shares used to calculate earnings per share have been reduced by the weighted number of repurchased shares. Recently Adopted Accounting Standards On March 30, 2016, FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard: (a) requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, (b) requires classification of excess tax benefits as an operating activity in the statement of cash flows rather than a financing activity, (c) eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable, (d) modifies statutory withholding tax requirements, and (e) provides for a policy election to account for forfeitures as they occur. The Company adopted the new standard on January 1, 2017. As a result of the adoption of the new standard, the Company recorded all income tax effects of share-based awards in its provision for income taxes in its Consolidated Statements of Income for the year ended December 31, 2017. On January 1, 2017, the Company also recorded a cumulative effect adjustment of $24.4 million as an increase of retained earnings on the Company’s Consolidated Balance Sheet, which included an increase to deferred tax assets of approximately $27.1 million related primarily to the recognition of excess tax benefits from stock-based compensation. Upon adoption, the Company elected to account for forfeitures as they occur, which may cause the timing of its non-cash stock-based compensation expense to be more volatile. Additionally, the Company adopted the change in presentation in the Consolidated Statements of Cash Flows related to excess tax benefits on a retrospective basis. The Consolidated Statement of Cash Flows for the year ended December 31, 2015 and 2016 were adjusted as follows: a $25.1 million and an $18.4 million increase to net cash provided by operating activities and a $25.1 million and an $18.4 million increase to net cash used in financing activities, respectively. There was no impact for the change in presentation in the statement of cash flows related to statutory tax withholding requirements because the Company had historically classified the statutory tax withholding as a financing activity in its Consolidated Statements of Cash Flows. In October 2016, FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory (ASU 2016-16), which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company early adopted the new standard as of January 1, 2017. The cumulative impact of applying this guidance to retained earnings was a decrease of approximately $1.1 million. |
Balance Sheet Items
Balance Sheet Items | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Items | NOTE 3 — Balance Sheet Items Cash and Cash Equivalents Cash and cash equivalents consist of the following: December 31, 2016 2017 (In thousands) Cash $ 84,169 $ 8,971 Money market fund (1) 50,077 215,572 Total cash and cash equivalents $ 134,246 $ 224,543 (1) Effective August 2017, the Company implemented a sweep money market account which reduces most of its cash account balances to zero at the end of each business day. Property and Equipment Property and equipment consist of the following: December 31, 2016 2017 (In thousands) Computer equipment $ 13,220 $ 14,049 Computer software 4,279 4,034 Furniture, fixtures and equipment 13,641 16,083 Leasehold improvements 20,083 25,372 Total property and equipment 51,223 59,538 Less: Accumulated depreciation and amortization (26,691 ) (33,658 ) Property and equipment, net $ 24,532 $ 25,880 Depreciation and amortization expense was $6.1 million, $8.9 million and $8.5 million for the years ended December 31, 2015, 2016 and 2017, respectively. Included in property and equipment as of December 31, 2016 and 2017 are assets acquired under capital lease obligations with original costs of $0.7 million and $0.5 million, respectively. Accumulated depreciation on capital lease assets was $0.4 million and $0.2 million as of December 31, 2016 and 2017, respectively. For the years ended December 31, 2016 and 2017, disposed property and equipment were immaterial. Goodwill and Intangible Assets Goodwill as of December 31, 2016 and 2017 consisted of the following: (In thousands) Balance as of December 31, 2015 $ - The Mutual Fund Store acquisition 293,720 2016 franchise acquisitions 18,300 Balance as of December 31, 2016 and 2017 (1) $ 312,020 (1) There is no accumulated impairment of goodwill for the periods presented. There were no adjustments to goodwill for the year ended December 31, 2017. Intangible assets as of December 31, 2016 and 2017 consisted of the following: December 31, 2016 December 31, 2017 (In thousands) Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 14 - 19 $ 164,338 $ 7,781 $ 156,557 $ 164,338 $ 16,675 $ 147,663 Franchise agreements and reacquired franchisee rights 1 - 9 2,697 498 2,199 2,697 787 1,910 Favorable leases, net 6 140 22 118 140 46 94 Trademarks/Trade names 20 39,230 1,810 37,420 39,230 3,785 35,445 Internal use software 2 - 4 60,965 51,508 9,457 58,359 45,426 12,933 Total $ 267,370 $ 61,619 $ 205,751 $ 264,764 $ 66,719 $ 198,045 Impairments to intangible assets were immaterial for the years ended December 31, 2016 and 2017. Amortization expense related to intangible assets was as follows: Year Ended December 31, 2016 2017 (In thousands) Customer relationships $ 7,781 $ 8,894 Franchise agreements and reacquired franchisee rights 498 289 Favorable leases, net 22 24 Trademarks/Trade names 1,810 1,975 Internal use software (1) 5,297 5,846 Amortization expense $ 15,408 $ 17,028 (1) For the year ended December 31, 2016 and 2017, internal use software amortization included approximately $0.5 million and $0.6 million of stock-based compensation expense, respectively. The following table presents the estimated future amortization of intangible assets as of December 31, 2017: (In thousands) Years ending December 31: 2018 $ 16,910 2019 14,957 2020 14,080 2021 11,552 2022 11,102 Thereafter 129,444 $ 198,045 Accounts Payable Accounts payable consists of the following: December 31, 2016 2017 (In thousands) Data connectivity fees payable $ 28,731 $ 23,489 Trade accounts payable 4,654 5,210 Other 3,395 1,294 Total accounts payable $ 36,780 $ 29,993 Accrued Compensation Accrued compensation consists of the following: December 31, 2016 2017 (In thousands) Accrued bonus $ 20,028 $ 22,558 Accrued vacation (1) 4,099 364 Accrued payroll (2) 1,465 3,144 Other 2,075 2,453 Total accrued compensation $ 27,667 $ 28,519 (1) The Company incurred cash payments totaling approximately $3.9 million in January 2017 associated with a change to its paid time off program for exempt employees as of January 1, 2017. (2) For the year ended December 31, 2017, accrued payroll includes $2.6 million of severance expense payable related to restructuring activities. Other Current Liabilities Other current liabilities consist of the following: December 31, 2016 2017 (In thousands) Short term deferred rent $ 1,361 $ 2,264 Short term holdbacks and earnouts 2,873 50 Other 109 143 Total other current liabilities $ 4,343 $ 2,457 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 4 Business Combinations Acquisition of The Mutual Fund Store and Franchises On February 1, 2016, the Company completed the acquisition of The Mutual Fund Store pursuant to an Agreement and Plan of Mergers, dated November 5, 2015, as amended. In addition, The Mutual Fund Store franchised certain of its stores, and twenty-one franchises were in operation at the time of the acquisition. Beginning in April 2016 and ending in October 2016, the Company acquired all of the franchised stores and as a result, after October 2016 all stores were company-owned. The acquisition enabled the Company to expand its independent advisory services to defined contribution participants through comprehensive financial planning and the option to meet face-to-face with a dedicated financial advisor. For the year ended December 31, 2016, the Company paid total consideration of $548.4 million related to acquisitions, including $274.6 million of cash consideration, net of holdbacks. The assets acquired consisted primarily of customer relationships, trade names and trademarks, reacquired franchisee rights and accounts receivable. The purchase price allocations for these acquisitions resulted in $312.0 million of goodwill. The Company incurred transaction costs related to acquisitions of $2.7 million and $6.6 million for the year ended December 31, 2015 and 2016, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity | NOTE 5 — Stockholders’ Equity Common Stock As of December 31, 2017, there were 500,000,000 shares of common stock authorized, 64,725,439 shares issued and 63,048,801 shares outstanding. Common stockholders are entitled to dividends if and when declared by the Board of Directors. Cash Dividends For the year ended December 31, 2017, the Board of Directors declared quarterly cash dividends totaling $0.28 per share annually of common stock outstanding. On February 14, 2018 the Board of Directors declared a quarterly dividend of $0.08 per share to be paid on April 5, 2018 to record-holders as of March 22, 2018. While the Company currently expects to pay comparable cash dividends on a quarterly basis in the future, any future determination with respect to the declaration and payment of dividends will be at the discretion of the Board of Directors. As of December 31, 2017, the Company had a dividend payable balance of $4.4 million, which was paid to stockholders in January 2018. Stock Repurchase Program On October 24, 2017, the Board of Directors approved a stock repurchase program of up to $60.0 million of the Company’s common stock over a twelve-month period of which $10.8 million has been utilized as of December 31, 2017. The approximate dollar value of shares that may yet be purchased under the repurchase program is $49.2 million. Any share repurchases may be made through open market and privately negotiated transactions, at times and in such amounts as management deems appropriate, and may or may not be made pursuant to one or more Rule 10b5-1 trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. The timing and amount of any shares repurchased will depend on a variety of factors, including stock price, market conditions, corporate and regulatory requirements (including applicable securities laws and regulations and the rules of The NASDAQ Stock Market), any additional constraints related to material inside information the Company may possess, and capital availability. The Company has no commitment to make any repurchases. The stock repurchase program may be modified, extended or terminated by the Board of Directors at any time and there is no guarantee as to the exact number of shares, if any, that will be repurchased under the program. The stock repurchase program is expected to be funded by available working capital. The repurchases were recorded as treasury stock and resulted in a reduction of stockholders’ equity. The Company repurchased shares of its common stock in the open market during the periods presented as follows: Total Number of Shares Purchased Average Repurchase Price Per Share Amount Year ended December 31, 2015: (In thousands) Third quarter 344,000 $ 32.43 $ 11,154 Second quarter 378,000 $ 42.29 $ 15,984 First quarter 275,000 $ 41.15 $ 11,317 Total 997,000 $ 38,455 Total Number of Shares Purchased Average Repurchase Price Per Share Amount Year ended December 31, 2017: (In thousands) Fourth quarter 399,638 $ 27.02 $ 10,800 Common Stock Reserved for Future Issuance As of December 31, 2017, the Company has reserved the following shares of common stock for issuance in connection with: Stock options outstanding 4,635,510 Restricted stock units outstanding 2,390,910 Performance stock units outstanding 81,160 Stock awards available for grant 5,476,488 Total shares reserved 12,584,068 Stock Plans 1998 Stock Plan The 1998 Stock Plan expired in April 2010. The Company has reserved a total of 305,155 shares of its common stock for issuance under its 1998 Stock Plan related to options granted prior to the initial public offering. Under the 1998 Stock Plan, the Board of Directors granted stock purchase rights and incentive and non-statutory stock options to employees, consultants and directors at fair market value on the date of grant. Vesting provisions of stock purchase rights and options granted under the 1998 Stock Plan were determined by the Board of Directors. Stock purchase rights have a 30-day expiration period and options expire no later than 10 years from the date of grant. In the event of voluntary or involuntary termination of employment with the Company, with or without cause, typically all unvested options are forfeited and all vested options must be exercised within three months or they are forfeited. 2009 Stock Incentive Plan The Company has reserved a total of 6,802,425 shares of its common stock for issuance under its Amended and Restated 2009 Stock Incentive Plan (the 2009 Stock Incentive Plan). In February 2013, the Board of Directors amended and restated the 2009 Stock Incentive Plan and approved the 2013-2017 Long-Term Incentive Program (the LTIP) thereunder, which was subsequently approved by stockholders in May 2013. Under the LTIP, the Company may grant performance stock unit (PSUs) awards based on objective performance criteria pre-established by the Compensation Committee of the Board of Directors. Under the 2009 Stock Incentive Plan, the Board of Directors may grant restricted stock awards, RSUs, PSUs, stock appreciation rights and incentive and non-statutory stock options to employees, consultants and directors at fair market value on the date of grant. Vesting provisions of equity awards granted under the 2009 Stock Incentive Plan are determined by the Board of Directors. Options granted will generally vest over a period of four years with 25% vesting on the first anniversary of the grant date and 1/48 vesting per month thereafter. Options expire no later than 10 years from the date of grant. RSUs will vest according to the terms of the award on the date of the grant, which is typically a period of four years with 25% of the shares vesting on each anniversary after the grant date. Restricted stock and PSUs awarded will vest according to the terms of the award on the date of the grant. For PSUs granted for the years ended December 31, 2013 and 2014, each PSU award consisted of two vesting cliffs. Sixty percent of each award vested on January 1, 2016 and 40% vested on January 1, 2018. Depending on performance against the target metrics, vesting could be between 0% and 140%. On a quarterly basis, the estimated probability of achieving the objective performance criteria was re-evaluated by management and the expense was adjusted accordingly at the end of each balance sheet period. The number of shares of the Company’s common stock issued to the award recipients at the end of each of the PSU vesting periods was based on actual achievement results. Options, RSUs and PSUs carry neither voting rights nor rights to dividends. In the event of voluntary or involuntary termination of employment with the Company, with or without cause, typically all unvested options, RSUs and PSUs are forfeited and all vested options must be exercised within three months or they are forfeited. Certain awards under the 2009 Stock Incentive Plan also provide for partial acceleration in the event of involuntary termination within 12 months of a change of control event, death, or total and permanent disability. In February 2016, the Board of Directors approved an executive severance and change in control policy for the Company’s executive officers, which provides that the executive officers may receive 100% accelerated vesting of outstanding equity awards and extended exercise rights for outstanding stock option awards, subject to severance and change in control conditions and contingent upon the execution by the executive officer of a full release of claims against the Company and any of its affiliates. The change in control provisions apply to the equity awards made to the Company’s executive officers under the 2009 Stock Incentive Plan on May 20, 2016. Upon vesting, RSUs and PSUs are settled in common stock on a one-for-one basis. Upon vesting of the RSUs and PSUs, the Company typically withholds shares that would otherwise be distributed to the employee when the RSUs and PSUs are settled having a fair market value equal to the amount necessary to satisfy minimum tax withholding obligations, which the Company will remit from operational cash. As of December 31, 2017, no shares were subject to repurchase and 5,476,488 shares were available for future grant. The 2009 Stock Incentive Plan expires in March 2026. Stock Option Plans The following table summarizes option activity under the 1998 Stock Plan and the 2009 Stock Incentive Plan: Number of Options Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value Balance, January 1, 2015 4,148,998 $ 27.73 Granted 1,115,109 37.30 Exercised (546,511 ) 16.86 Forfeited (317,781 ) 39.63 Balance, December 31, 2015 4,399,815 30.65 Granted 1,831,432 27.05 Exercised (404,208 ) 16.39 Forfeited (369,946 ) 36.96 Balance, December 31, 2016 5,457,093 30.07 Granted 804,231 40.96 Exercised (933,245 ) 24.03 Forfeited (692,569 ) 35.45 Balance, December 31, 2017 4,635,510 $ 32.37 6.62 $ 13,915,173 Vested and expected to vest, December 31, 2017 4,635,510 $ 32.37 6.62 $ 13,915,173 Exercisable, December 31, 2017 2,616,627 $ 30.95 5.40 $ 11,208,649 The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the aggregate difference between the fair value of the Company’s common stock on December 31, 2017 of $30.30, and the exercise price of in-the-money options) that would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of options exercised during the years ended December 31, 2015, 2016 and 2017 was $12.9 million, $6.2 million and $16.0 million, respectively. The weighted average fair value per share of options granted to employees for the years ended December 31, 2015, 2016 and 2017 was approximately $13.17, $10.35 and $15.24, respectively. Total cash received from employees as a result of employee stock option exercises for the years ended December 31, 2015, 2016 and 2017 was $9.2 million, $6.6 million and $22.4 million, respectively. The total grant-date fair value of the shares vested during the years ended December 31, 2015, 2016 and 2017 was $11.2 million, $11.2 million and $13.9 million, respectively. As of December 31, 2017, there was $11.3 million of unrecognized compensation cost related to unvested stock options, to be recognized over the weighted average remaining requisite service period of 1.2 years. The following weighted average assumptions were used to value options granted: 2015 2016 2017 Expected life in years 6 6 6 Risk-free interest rate 1.72% 1.42% 2.05% Volatility 37% 43% 38% Dividend yield 0.8% 1.0% 0.7% Restricted Stock Units Information The following table summarizes RSU activity under the 2009 Stock Incentive Plan: Number of Shares Weighted Average Grant-Date Fair Value Weighted Average Remaining Term Aggregate Intrinsic Value Balance, January 1, 2015 844,722 $ 36.38 Granted 363,388 36.23 Vested and settled (1) (302,617 ) 34.90 Forfeited (90,676 ) 37.06 Balance, December 31, 2015 814,817 36.78 Granted 1,156,344 27.28 Vested and settled (1) (278,700 ) 36.15 Forfeited (95,140 ) 34.36 Balance, December 31, 2016 1,597,321 30.16 Granted 1,511,078 36.03 Vested and settled (1) (473,569 ) 31.95 Forfeited (243,920 ) 33.15 Balance, December 31, 2017 2,390,910 $ 33.21 1.72 $ 72,444,573 Expected to vest, December 31, 2017 2,390,910 $ 33.21 1.72 $ 72,444,573 (1) Vested and settled for the years ended December 31, 2015, 2016 and 2017 includes 100,337 shares, 104,109 shares and 157,196 shares, respectively, which were tendered in exchange for minimum tax withholdings. The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (using the fair value of the Company’s common stock on December 31, 2017 of $30.30). As of December 31, 2017, the aggregate intrinsic value of unvested RSUs was $72.4 million. The total intrinsic value of RSUs vested and settled during the years ended December 31, 2015, 2016 and 2017 was $10.8 million, $9.0 million and $17.1 million, respectively. The total grant-date fair value of shares vested during the years ended December 31, 2015, 2016 and 2017 was $10.6 million, $10.1 million and $15.1 million, respectively. As of December 31, 2017, there was $48.4 million of unrecognized compensation cost related to restricted stock purchase rights to be recognized over the weighted average remaining requisite service period of 1.7 years. Performance Stock Units Information During the years ended December 31, 2013 and 2014, the Compensation Committee of the Board of Directors granted PSUs to certain executives. The following table summarizes unvested PSU activity under the 2009 Stock Incentive Plan: Number of Shares Weighted Average Grant-Date Fair Value Weighted Average Remaining Term Aggregate Intrinsic Value Balance, January 1, 2015 292,000 $ 43.32 Granted - - Vested and settled - - Forfeited - - Balance, December 31, 2015 292,000 43.32 Granted - - Vested and settled (38,797 ) 43.32 Forfeited (148,123 ) 43.27 Balance, December 31, 2016 105,080 43.39 Granted - - Vested and settled - - Forfeited (23,920 ) 43.16 Balance, December 31, 2017 81,160 $ 43.46 0.0 $ 2,459,148 Expected to vest, December 31, 2017 20,488 $ 43.46 0.0 $ 620,786 The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (using the fair value of the Company’s common stock on December 31, 2017 of $30.30). As of December 31, 2017, of the remaining unrecognized compensation cost was immaterial and the remaining requisite service period for PSUs ended January 1, 2018. On January 1, 2016, performance achievement for the December 31, 2015 performance metrics that were probable of achievement resulted in 38,797 shares issued to certain executives in February 2016. On January 1, 2018, performance achievement for the December 31, 2017 performance metrics that were probable of achievement resulted in 20,488 shares issued to certain executives in February 2018. Stock-based Compensation The following table summarizes the stock-based compensation by functional area: Year Ended December 31, 2015 2016 2017 (In thousands) Stock-based compensation: Cost of revenue $ 4,501 $ 7,974 $ 10,225 Research and development 5,631 6,012 7,575 Sales and marketing 7,643 9,610 8,355 General and administrative 7,918 9,604 9,703 Amortization of intangible assets 335 489 567 Total stock-based compensation $ 26,028 $ 33,689 $ 36,425 Recognized income tax benefit on stock-based compensation included with income tax expense for the years ended December 31, 2015, 2016 and 2017 was $10.5 million, $13.4 million and $10.2 million, respectively. On January 1, 2017, the Company adopted ASU No. ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting and elected to account for forfeitures as they occur, which may cause the timing of stock-based compensation expense to be more volatile. |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | NOTE 6 — Net Income Per Common Share The following table sets forth the computation of basic and diluted net income per share attributable to holders of common stock: Year Ended December 31, 2015 2016 2017 (In thousands, except per share data) Numerator (basic and diluted): Net income $ 31,617 $ 28,560 $ 46,660 Denominator (basic): Weighted average common shares outstanding 51,732 60,962 62,952 Denominator (diluted): Weighted average common shares outstanding 51,732 60,962 62,952 Dilutive stock options outstanding 903 602 808 Dilutive unvested restricted stock units 374 524 827 Dilutive unvested performance stock units 30 15 18 Net weighted average common shares outstanding 53,039 62,103 64,605 Net income per share attributable to holders of common stock: Basic $ 0.61 $ 0.47 $ 0.74 Diluted $ 0.60 $ 0.46 $ 0.72 Diluted net income per share does not include the effect of the following anti-dilutive common equivalent shares: Year Ended December 31, 2015 2016 2017 (In thousands) Stock options outstanding 1,601 3,443 1,906 Restricted stock units outstanding 32 72 65 Total anti-dilutive common equivalent shares 1,633 3,515 1,971 On February 1, 2016, the Company issued 9,885,889 shares of its common stock as part of the consideration to acquire The Mutual Fund Store. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7 — Income Taxes The Company is subject to income taxes only in the United States. Provision for income tax expense consists of the following: Year Ended December 31, 2015 2016 2017 (In thousands) Current expense: Federal $ 24,995 $ 19,580 $ 1,534 State 598 2,244 1,777 Total current 25,593 21,824 3,311 Deferred expense: Federal (7,968 ) (1,403 ) 34,532 State 239 291 2,108 Total deferred (7,729 ) (1,112 ) 36,640 Total provision for income taxes $ 17,864 $ 20,712 $ 39,951 For the years ended December 31, 2015 and 2016, the Company's current income tax expense does not reflect the excess tax benefits of employee stock-based awards. For stock options, the Company receives an income tax benefit calculated as the tax effect of the difference between the fair market value of the stock issued at the time of the exercise and the exercise price. For RSUs, the Company receives an income tax benefit upon the award's vesting equal to the tax effect of the underlying stock's fair market value. For tax years ended December 31, 2015 and 2016, where an incremental excess tax benefit was realized as a reduction of income taxes payable, such excess tax benefit was recognized as an increase to additional paid-in capital. The realized excess tax benefits from employee stock-based awards transactions in the years ended December 31, 2015 and 2016 were $25.1 million and $18.4 million, respectively. Beginning January 1, 2017, with the adoption of ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting, all tax effects of employee stock-based awards are recorded within current and deferred tax expense. The difference between income tax expense and the amount resulting from applying the federal statutory rate of 35% to net income is attributable to the following: Year Ended December 31, 2015 2016 2017 Federal tax at statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 1.4 % 3.6 % 4.1 % 2017 Tax Act impacts 0.0 % 0.0 % 8.8 % Nondeductible expenses 0.2 % 0.4 % 0.2 % Stock-based compensation -0.2 % 0.2 % 0.0 % Research and development credit -0.3 % -0.3 % -1.4 % Change in valuation allowance 0.0 % 0.0 % -0.2 % Other 0.0 % 3.1 % -0.4 % Income tax expense 36.1 % 42.0 % 46.1 % On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the 2017 Tax Act). The Company has not completed its determination of the accounting implications of the 2017 Tax Act. However, it has reasonably estimated the effects of the 2017 Tax Act and recorded provisional amounts in the financial statements as of December 31, 2017. The Company recorded a provisional tax expense for the impact of the 2017 Tax Act of approximately $7.6 million. This amount is primarily comprised of the remeasurement of federal deferred tax assets resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21% from 35%. As the Company completes its analysis of the 2017 Tax Act, collects and prepares necessary data, interprets any additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, it may make adjustments to the provisional amounts. For the year ended December 31, 2016, there was $1.5 million of income tax expense due to non-deductible transaction expenses related to acquisition activity included in the 3.1% in the table above. The components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2016 2017 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 14,046 $ 11,321 Tax credits 2,091 10,474 Deferred revenue 98 73 Stock-based compensation 23,763 17,942 Accrued expenses and reserves 15,017 3,945 Total gross deferred tax assets 55,015 43,755 Valuation allowance (162 ) - Net deferred tax assets 54,853 43,755 Deferred tax liabilities Fixed assets and intangible amortization (14,349 ) (14,954 ) Total deferred tax liabilities (14,349 ) (14,954 ) Net deferred tax assets $ 40,504 $ 28,801 The Company continuously evaluates additional facts representing positive and negative evidence in the determination of the realizability of the deferred tax assets. Upon evaluating the positive and negative evidence present at December 31, 2017, management concluded it was more likely than not that the benefit of its deferred tax assets will be realized. As of December 31, 2017, the Company has net operating loss carryforwards for federal and state income tax purposes of approximately $39.3 million and $68.9 million, respectively, available to reduce future income subject to income taxes. The federal and state net operating loss carryforwards expire through 2036. As of December 31, 2017, the Company has research credit carryforwards for federal and California income tax purposes of approximately $6.8 million and $8.6 million, respectively, available to reduce future income taxes. The federal research credit carryforwards expire through 2037. The California research credit carries forward indefinitely. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: Year Ended December 31, 2016 2017 (In thousands) Balance, beginning of year $ 6,657 $ 6,672 Reductions for tax positions taken in the prior year - - Additions for tax positions taken in the prior year - - Additions for tax positions taken in the current year 15 281 Balance, end of year $ 6,672 $ 6,953 As of December 31, 2017, unrecognized tax benefits approximating $5.5 million would affect the effective tax rate if recognized. The Company does not anticipate adjustments to unrecognized tax benefits which would result in a material change to its financial position within the next twelve months. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. During the years ended December 31, 2015, 2016 and 2017, the accrued interest and penalties were immaterial. The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions. All tax years since inception in the Company’s major jurisdictions are open due to loss carryforwards and may be subject to examination in one or more jurisdictions. |
Savings Plan
Savings Plan | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Savings Plan | NOTE 8 — Savings Plan The Company maintains a savings plan under Section 401(k) of the Internal Revenue Code. Under the plan, employees may contribute up to 75% of their pre-tax salaries per year, but not more than the statutory limits. The Company may, at its discretion, make matching contributions to the 401(k) Plan. For the years ended December 31, 2015, 2016 and 2017 the Company made matching contributions of 100% of employee contributions up to 4% of salary (including commissions), which totaled $2.3 million, $3.7 million and $4.3 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9 — Commitments and Contingencies Commitments The Company leases its facilities under non-cancelable operating leases expiring at various dates through the year 2027. The Company classifies tenant improvement allowances in its Consolidated Balance Sheets under deferred rent and amortizes them on a straight-line basis over the related lease period. Tenant improvement allowance activity is presented as part of cash flows from operating activities in the accompanying Consolidated Statements of Cash Flows. Certain of the Company’s facility leases provide for a free rent period or escalating rent payments and, accordingly, the Company has straight-lined the rental payments over the respective lease terms. As of December 31, 2016 and 2017, deferred rent was $13.6 million and $13.0 million, respectively. Rent expense for all operating leases totaled approximately $3.9 million, $8.3 million and $9.0 million for the years ended December 31, 2015, 2016 and 2017, respectively. In the years ended December 31, 2015, 2016 and 2017, the Company entered into various office equipment capital leases which terminate in between April 2019 and January 2022. The following table summarizes the Company’s contractual obligations as of December 31, 2017. Certain of these contractual obligations are reflected on the Company’s Consolidated Balance Sheets while others are disclosed as future obligations under GAAP. Purchase obligations represent non-cancelable, long-term contracts primarily related to software and data services, and includes a 5-year contract with a vendor for software services with a total commitment of $7.7 million. Capital Lease Operating Leases Purchase Obligations (In thousands) Year ending December 31, 2018 $ 155 $ 9,961 $ 3,849 2019 102 10,160 2,978 2020 69 7,670 1,659 2021 69 5,813 1,542 2022 1 4,314 1,541 Thereafter - 10,449 - Total minimum payments 396 $ 48,367 $ 11,569 Less: Amounts representing interest expense (23 ) Present value of net minimum lease payments 373 Less: Current obligations (144 ) Long-term obligations $ 229 In February 2016, as a result of the acquisition of The Mutual Fund Store, the Company acquired non-cancelable operating leases, including an existing office in Overland Park, Kansas, which expired in September 2016, as well as a new 33,100 square foot office in Overland Park, Kansas, which operating lease expires in March 2027. This Overland Park, Kansas lease also includes a tenant improvement allowance of approximately $1.8 million. During the year ended December 31, 2017, the Company had approximately 140 advisor center location operating leases located in over 35 states with expiration dates through July 2027. Contingencies Service Level Agreements The Company includes service level commitments to its customers warranting certain levels of reliability and performance. The maximum total commitments under these obligations would have less than a $1.0 million impact on the Company’s annual operating results as of December 31, 2017. Self-Insurance The Company provides self-insured medical benefits for employees based upon their coverage elections. The medical plan carries a stop-loss policy which will protect from individual claims during the plan year exceeding $100,000 and when cumulative medical claims exceed 120% of expected claims for the plan year. The Company records estimates of the total costs of claims incurred based on an analysis of historical data. The liability for self-insured medical claims is included within accrued compensation in the Company’s Consolidated Balance Sheet and was $0.6 million and $0.7 million as of December 31, 2016 and 2017, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 10 — Subsequent Events Equity Awards to Certain Executive Officers In February 2018, the Compensation Committee approved the grant of stock options and RSUs to certain executives made available under the Company’s 2009 Stock attribution |
Basis of Presentation and Pri18
Basis of Presentation and Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates 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, the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant items subject to such estimates include stock-based compensation, direct response advertising, the fair value of acquired assets and assumed liabilities, internal use software, income taxes and goodwill, intangible assets and property, plant and equipment. Actual results could differ from those estimates under different assumptions or conditions. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Cash and cash equivalents are comprised of cash held primarily in money market funds. |
Fair Value of Financial Instruments | Concentration of Credit Risk and Fair Value of Financial Instruments The Company measures and reports its investments in money market funds at fair value on a recurring basis, which approximates their carrying value due to the short period of time to maturity as of December 31, 2016 and 2017. There have been no changes in the Company’s valuation techniques during the years ended December 31, 2016 and 2017. The money market funds are classified as Level 1. The following table summarizes the Company’s financial assets measured at fair value on a recurring basis: As of December 31, 2016 As of December 31, 2017 Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) (In thousands) Assets: Money Market Funds $ 50,077 $ 50,077 $ - $ - $ 215,572 $ 215,572 $ - $ - (1) Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. (2) Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. (3) Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. |
Concentration of Credit Risk | Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents primarily in highly-rated taxable money market funds which hold securities issued or guaranteed by the United States government or their agencies. These deposits may exceed federal deposit insurance limits. The fair value of the Company’s money market funds is based on a trade date basis on the last business day of the accounting period. The fair value of the Company’s accounts receivable and accounts payable approximates the carrying amount due to their short duration. The Company’s customers are concentrated in the United States. The Company performs ongoing credit evaluations of its customers and does not require collateral. The Company reviews the need for allowances for potential credit losses and such losses have been insignificant to date. Significant Customer Information One customer accounted for 10% of the Company’s accounts receivable as of December 31, 2017, and this same customer accounted for 10% of the Company’s total revenue for the years ended December 31, 2015 and 2017. No customers accounted for 10% or more of accounts receivable as of December 31, 2016 or total revenue for the year ended December 31, 2016. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and are not interest bearing. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible trade receivables. The Company reviews its trade receivables by aging category to identify significant customers with collection issues. For accounts not specifically identified, the Company provides reserves based on historical bad debt loss experience. The allowance for doubtful accounts were immaterial for the years ended December 31, 2015, 2016 and 2017. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets and allocated to the department of benefit in the accompanying Consolidated Statements of Income. Leasehold improvements and capital lease equipment are amortized over the shorter of the remaining lease term or the useful life of the asset. Software purchased for internal use is amortized over its useful life. Expenditures for maintenance and repairs are charged to expense as incurred. Estimated Useful Lives in Years Computer equipment 3 Computer software 2 Furniture, fixtures, and equipment 5 Leasehold improvements life of the lease Capital lease equipment life of the lease |
Internal Use Software | Internal Use Software Certain direct development costs associated with internal use software are capitalized and include payroll costs for employees and external direct consulting costs related to software coding, designing system interfaces, and installation and testing of the software. Internal use software includes engineering costs associated with (1) enhancing the Company’s advisory service platform and (2) developing internal systems for tracking member data, including AUM, member cancellations and other related member statistics. The capitalized costs are amortized using the straight-line method over an estimated life of approximately two to four years, beginning when the asset is substantially ready for use. Costs related to preliminary project activities and post implementation activities are expensed as incurred. A portion of internal use software relates to cost of revenue, as well as the Company’s other functional departments. However the Company is not able to meaningfully allocate the costs among cost of revenue and operations. Accordingly, amortization is presented within amortization of intangible assets on the accompanying Consolidated Statements of Income. |
Business Combinations | Business Combinations The Company accounts for business combinations under the acquisition method. The cost of an acquired company is assigned to the tangible and intangible assets acquired and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets acquired and liabilities assumed requires management to make estimates and use valuation techniques when market values are not readily available. Any excess of the aggregate purchase price over the fair value of net tangible and identifiable intangible assets acquired is allocated to goodwill. Transaction costs associated with business combinations are expensed as incurred. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill consists of the excess of the aggregate purchase price over the fair value of net tangible and identifiable intangible assets acquired by the Company. The carrying amount of goodwill is tested for impairment each year in the fourth quarter, or more frequently if facts and circumstances warrant a review, by using a two-step process. The Company has concluded that it has a single reporting unit for the purpose of goodwill impairment testing, and accordingly, all goodwill resides within a single reporting unit. The Company compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, the Company would perform a measurement of the amount of impairment by comparing the carrying amount of the goodwill to a determination of the implied fair value of the goodwill. If the carrying amount of the goodwill is greater than the implied value, an impairment loss is recognized for the difference. There have been no goodwill impairment losses to date. The Company does not have any indefinite lived intangible assets besides goodwill. Intangible assets with definite useful lives are recorded at their acquired value less accumulated amortization. Intangible assets are reviewed for impairment whenever events or changes in circumstances raise doubt about recoverability of the net assets. Such reviews include an analysis of current results and take into consideration the undiscounted value of projected operating cash flows. There were no impairments or changes in useful lives of acquired intangible assets during the periods presented. Intangible assets consist primarily of customer relationships, trademarks, trade names, internal use software and reacquired franchisee rights. These intangible assets are acquired through business combinations or, in the case of capitalized software costs, are internally developed. Intangible assets are amortized on a straight-line basis over their estimated useful lives which range from 1 year to 20 years. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, such as property, equipment, direct response advertising and intangible assets, including capitalized internal use software, subject to depreciation and amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or an asset group may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability by determining whether the carrying value of such assets or asset group will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows of the assets or asset group are less than their carrying amount, the Company would recognize an impairment loss based on any excess of the carrying amount of the asset or asset group over their fair value. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Impairments to long-lived assets were immaterial during the periods presented. |
Deferred Sales Commissions | Deferred Sales Commissions Deferred sales commissions consist of incremental costs paid to the Company’s sales force associated with the execution of customer contracts. The deferred sales commission amounts are recoverable through future revenue streams under the customer contracts. The Company believes this is the preferable method of accounting as the commission charges are so closely related to the revenue from the customer contracts that they should be recorded as an asset and charged to expense over the initial term of the related customer contracts, which is typically three to five years. Amortization of deferred sales commissions is included in sales and marketing expense in the accompanying Consolidated Statements of Income. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income is the same as net income for all periods presented. |
Segment Information | Segment Information The Company’s chief operating decision-maker, its chief executive officer, reviews the Company’s operating results on an aggregate, consolidated basis and manages its operations as a single operating segment. In addition, all of the Company’s operations and assets are based in the United States. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when all of the following conditions are met: • There is persuasive evidence of an arrangement, as evidenced by a signed contract; • Delivery has occurred or the service has been made available to the customer, which occurs upon completion of implementation and connectivity services, if applicable, and acceptance by the customer; • The collectability of the fees is reasonably assured; and • The amount of fees to be paid by the customer is fixed or determinable. The Company generates its revenue through three primary sources: professional management, platform and other revenue. Professional Management. The Company derives professional management revenue from client fees paid by or on behalf of both DC and individual investor clients who are enrolled in one of its discretionary portfolio management services (either the Professional Management service or the Personal Advisor service) for the management of their account assets. The Company continues to use the term professional management revenue to include revenue from both the Professional Management and Personal Advisor services. The Company’s Professional Management service is a discretionary personalized portfolio management service for DC participants who want to work with or delegate the management of their retirement accounts to a professional with the help of an advisor team. Personal Advisor is a personalized service that can provide discretionary portfolio management on a client’s 401(k), IRA and/or taxable assets, as well as comprehensive financial planning and a dedicated advisor representative that participants can meet with in person, online or by phone. The Company’s retirement income solutions, including Income+ and Retirement Paycheck, which are features of its Professional Management and Personal Advisor services, respectively, provide clients approaching or in retirement with discretionary portfolio management with an income objective and steady monthly payments from their accounts during retirement, including Social Security claiming guidance and planning. The services are generally made available to prospective clients by written agreements with the plan provider, the plan sponsor and the plan participant in a DC plan (and may be provided on a subadvisory basis) and by written agreements with retail investors. The Company’s arrangements with clients using discretionary portfolio management services generally provide for fees based on the value of assets managed and are generally payable quarterly in arrears. The majority of client fees for DC accounts, for both advisory and subadvisory relationships, are calculated on a monthly basis, as the product of client fee rates and the value of assets under management (AUM) at or near the end of each month. For IRA and taxable accounts, client fees are calculated on a quarterly basis at the end of each quarter. Platform. The Company derives platform revenue from recurring, subscription-based fees for access to its services, including Online Advice, education and guidance, and to a lesser extent, from setup fees. Online Advice is a non-discretionary, Internet-based investment advisory service, which includes personalized online savings and investment advice and retirement income projections for clients who want to manage their retirement themselves. The arrangements generally provide for fees to be paid by the plan sponsor, plan provider or the DC plan itself, depending on the plan structure. Platform revenue is generally paid annually or quarterly in advance and recognized ratably over the term of the subscription period beginning after the completion of customer setup and data connectivity. Setup fees are recognized ratably over seven years and are immaterial for the periods presented. Other. Other revenue includes reimbursement for a portion of marketing and client materials from certain subadvisory relationships. Non-retirement account servicing fees were applicable for the period of February 1, 2016 to December 31, 2016. The fees for non-retirement account servicing do not impact client fees paid for discretionary portfolio management services, and are disclosed in the applicable Form ADV of the Company’s advisory subsidiaries. Franchise royalty fees were applicable for the period of February 1, 2016 to September 30, 2016, as the Company had acquired all remaining franchises as of October 2016. Professional management revenue earned subsequent to the respective acquisition date of the franchises is included in professional management revenue. The franchise royalty fees were recognized as revenue as the services are performed by the franchisees and were based on specified percentages of the franchisees’ advisory fees billed to their clients, which were primarily based on predetermined percentages of the market value of the AUM and were affected by changes in the AUM. Costs associated with reimbursed printed fulfillment materials are expensed to cost of revenue as incurred. |
Deferred Revenue | Deferred Revenue Deferred revenue consists primarily of billings or payments received in advance of revenue recognition generated by the Company’s platform service and setup fees. For these services, the Company generally invoices its customers in annual or quarterly installments payable in advance. Accordingly, the deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription contracts. |
Cost of Revenue | Cost of Revenue Cost of revenue includes fees paid to plan providers for connectivity to plan and plan participant data, printed materials fulfillment costs for certain subadvisory relationships for which a portion are reimbursed, printed client materials, and employee-related costs for in-person dedicated advisor centers and call center advisors, operations, implementations, technical operations, portfolio management and client service administration. Costs in this area are related primarily to payments to third parties, employee compensation and related expenses, facilities expenses, purchased materials and depreciation. The expenses included in cost of revenue are shared across the different revenue categories, and the Company is not able to meaningfully allocate such costs between separate categories of revenue. Consequently, all costs and expenses applicable to the Company’s revenue are included in the category cost of revenue in the Consolidated Statements of Income. A portion of the amortization of intangible assets, including internal use software, relates to the Company’s cost of revenue but is reflected together with all amortization of intangible assets as a separate line item in the Company’s Consolidated Statements of Income. |
Direct Response Advertising | Direct Response Advertising The Company’s advertising costs include printed materials associated with new customer solicitations. These costs relate primarily to either active enrollment campaigns, where marketing materials are sent to solicit enrollment in the Company’s Professional Management service, or passive enrollment campaigns, where the plan sponsor defaults all eligible clients into the Professional Management service unless they decline. Advertising costs relating to passive enrollment campaigns and other general marketing materials sent to participants do not qualify as direct response advertising and are expensed to sales and marketing in the period the advertising activities first take place. Printed fulfillment costs relating to subadvisory campaigns do not qualify as direct response advertising and are expensed to cost of revenue in the period in which the expenses were incurred. As campaign materials are modified over time, the Company evaluates the content to ensure it has properly identified those campaigns which qualify for capitalization per the accounting definition of direct-response advertising and expense those campaigns that do not qualify as incurred. Advertising costs associated with direct advisory active enrollment campaigns qualify for capitalization as direct response advertising. The capitalized costs are amortized within sales and marketing expense in the Company’s Consolidated Statements of Income The Company capitalizes direct response advertising costs associated with direct advisory active enrollment campaigns as the Company has sufficient and verifiable historical patterns to demonstrate the probable future benefits of such campaigns. During the years ended December 31, 2015, 2016 and 2017, the Company capitalized $4.4 million, $3.5 million and $2.5 million, respectively, of direct response advertising costs. Advertising expense was $8.2 million, $19.9 million and $21.6 million for the years ended December 31, 2015, 2016 and 2017, respectively, of which direct response advertising amortization and impairment was $5.5 million, $4.8 million and $3.7 million, respectively. During the years ended December 31, 2015, 2016 and 2017, impairment to direct response advertising were immaterial. Advertising expense other than direct response advertising amortization, such as radio and digital advertising, was expensed as incurred. The Company expects direct response advertising costs currently capitalized and amortized for certain printed materials associated with new customer solicitations to be expensed as incurred after adoption of Accounting Standards Update No. (ASU) 2014-09, Revenue from Contracts with Customers, on January 1, 2018. |
Deferred Income Taxes | Deferred Income Taxes Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and the tax bases of assets and liabilities. Deferred tax assets are also recognized for tax net operating loss carryforwards. These deferred tax assets and liabilities are measured using the enacted tax rates and laws that are expected to be in effect when such amounts are expected to reverse or be utilized. The realization of total deferred tax assets is contingent upon the generation of future taxable income. Valuation allowances are provided to reduce such deferred tax assets to amounts more likely than not to be ultimately realized. See Note 7 for additional information. |
Stock-based Compensation | Stock-based Compensation Employee stock-based compensation expense is based on the following: (1) the grant date fair value of stock option awards granted or modified after January 1, 2006, and (2) the fair value of the Company’s common stock as of the grant date for restricted stock units (RSUs) and performance stock units (PSUs). The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model. The Company currently uses the simplified method in developing an estimate of expected term of stock options. The expected term represents the period that stock-based awards are expected to be outstanding, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of the Company’s stock-based awards. Prior to 2016, the computation of expected volatility was based on a combination of the historical and implied volatility of comparable companies from a representative peer group based on industry and market capitalization data, as well as the Company’s own historical volatility. Beginning in 2016, the Company began to base expected volatility on its own historical volatility, as it had sufficient exercise history to do so. The Company includes a dividend yield in its Black-Scholes option pricing model to reflect the anticipated dividends to be paid over the expected term of the awards. The Company expenses RSUs over the performance period based on the fair market value of the awards at the date of grant. The Company expenses PSUs based on the fair market value of the awards on the date of grant and the number of shares ultimately expected to vest at the end of each performance period, ratably over the each of the performance periods. Each PSU award consisted of two vesting cliffs. Sixty percent of each award vested on January 1, 2016 and forty percent vested on January 1, 2018. Depending on performance against the target metrics, vesting could be between 0% and 140%. The actual number of shares of common stock issued were determined on each vesting cliff date based on actual performance results against the target metrics. For PSUs, the Company re-assessed the probability of achieving the target metrics at the end of each reporting period and adjusted the recognition of expense accordingly. The Company’s stock-based compensation instruments are accounted for as equity awards as the settlement is in shares of the Company’s common stock. The Company amortizes stock-based compensation expense using a graded vesting method over the requisite service periods of the awards, which is generally the vesting period. Management estimates expected forfeitures and recognizes compensation costs only for those stock-based awards expected to vest. Amortization of stock-based compensation is presented in the same line item as the cash compensation to those employees in the accompanying Consolidated Statements of Income. The Company’s current practice is to issue new shares to settle stock option exercises and on vesting of RSUs and PSUs. |
Net Income per Common Share | Net Income per Common Share Basic net income per common share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period less the weighted average number of common shares repurchased by the Company during the period. Diluted net income per common share is computed by giving effect to all dilutive potential common shares, including options, RSUs, and PSUs. Repurchased shares are held as treasury stock and outstanding shares used to calculate earnings per share have been reduced by the weighted number of repurchased shares. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards On March 30, 2016, FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard: (a) requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, (b) requires classification of excess tax benefits as an operating activity in the statement of cash flows rather than a financing activity, (c) eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable, (d) modifies statutory withholding tax requirements, and (e) provides for a policy election to account for forfeitures as they occur. The Company adopted the new standard on January 1, 2017. As a result of the adoption of the new standard, the Company recorded all income tax effects of share-based awards in its provision for income taxes in its Consolidated Statements of Income for the year ended December 31, 2017. On January 1, 2017, the Company also recorded a cumulative effect adjustment of $24.4 million as an increase of retained earnings on the Company’s Consolidated Balance Sheet, which included an increase to deferred tax assets of approximately $27.1 million related primarily to the recognition of excess tax benefits from stock-based compensation. Upon adoption, the Company elected to account for forfeitures as they occur, which may cause the timing of its non-cash stock-based compensation expense to be more volatile. Additionally, the Company adopted the change in presentation in the Consolidated Statements of Cash Flows related to excess tax benefits on a retrospective basis. The Consolidated Statement of Cash Flows for the year ended December 31, 2015 and 2016 were adjusted as follows: a $25.1 million and an $18.4 million increase to net cash provided by operating activities and a $25.1 million and an $18.4 million increase to net cash used in financing activities, respectively. There was no impact for the change in presentation in the statement of cash flows related to statutory tax withholding requirements because the Company had historically classified the statutory tax withholding as a financing activity in its Consolidated Statements of Cash Flows. In October 2016, FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory (ASU 2016-16), which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company early adopted the new standard as of January 1, 2017. The cumulative impact of applying this guidance to retained earnings was a decrease of approximately $1.1 million. |
Basis of Presentation and Pri19
Basis of Presentation and Principles of Consolidation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s financial assets measured at fair value on a recurring basis: As of December 31, 2016 As of December 31, 2017 Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) (In thousands) Assets: Money Market Funds $ 50,077 $ 50,077 $ - $ - $ 215,572 $ 215,572 $ - $ - (1) Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. (2) Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. (3) Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. |
Property and Equipment | Expenditures for maintenance and repairs are charged to expense as incurred. Estimated Useful Lives in Years Computer equipment 3 Computer software 2 Furniture, fixtures, and equipment 5 Leasehold improvements life of the lease Capital lease equipment life of the lease |
Balance Sheet Items (Tables)
Balance Sheet Items (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Cash and Cash Equivalents | Cash and cash equivalents consist of the following: December 31, 2016 2017 (In thousands) Cash $ 84,169 $ 8,971 Money market fund (1) 50,077 215,572 Total cash and cash equivalents $ 134,246 $ 224,543 (1) Effective August 2017, the Company implemented a sweep money market account which reduces most of its cash account balances to zero at the end of each business day. |
Components of Property and Equipment | Property and equipment consist of the following: December 31, 2016 2017 (In thousands) Computer equipment $ 13,220 $ 14,049 Computer software 4,279 4,034 Furniture, fixtures and equipment 13,641 16,083 Leasehold improvements 20,083 25,372 Total property and equipment 51,223 59,538 Less: Accumulated depreciation and amortization (26,691 ) (33,658 ) Property and equipment, net $ 24,532 $ 25,880 |
Schedule of Goodwill | Goodwill as of December 31, 2016 and 2017 consisted of the following: (In thousands) Balance as of December 31, 2015 $ - The Mutual Fund Store acquisition 293,720 2016 franchise acquisitions 18,300 Balance as of December 31, 2016 and 2017 (1) $ 312,020 (1) There is no accumulated impairment of goodwill for the periods presented. There were no adjustments to goodwill for the year ended December 31, 2017. |
Schedule of Intangible Assets | Intangible assets as of December 31, 2016 and 2017 consisted of the following: December 31, 2016 December 31, 2017 (In thousands) Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 14 - 19 $ 164,338 $ 7,781 $ 156,557 $ 164,338 $ 16,675 $ 147,663 Franchise agreements and reacquired franchisee rights 1 - 9 2,697 498 2,199 2,697 787 1,910 Favorable leases, net 6 140 22 118 140 46 94 Trademarks/Trade names 20 39,230 1,810 37,420 39,230 3,785 35,445 Internal use software 2 - 4 60,965 51,508 9,457 58,359 45,426 12,933 Total $ 267,370 $ 61,619 $ 205,751 $ 264,764 $ 66,719 $ 198,045 |
Schedule of Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets was as follows: Year Ended December 31, 2016 2017 (In thousands) Customer relationships $ 7,781 $ 8,894 Franchise agreements and reacquired franchisee rights 498 289 Favorable leases, net 22 24 Trademarks/Trade names 1,810 1,975 Internal use software (1) 5,297 5,846 Amortization expense $ 15,408 $ 17,028 (1) For the year ended December 31, 2016 and 2017, internal use software amortization included approximately $0.5 million and $0.6 million of stock-based compensation expense, respectively. |
Schedule of Estimated Future Amortization of Intangible Assets | The following table presents the estimated future amortization of intangible assets as of December 31, 2017: (In thousands) Years ending December 31: 2018 $ 16,910 2019 14,957 2020 14,080 2021 11,552 2022 11,102 Thereafter 129,444 $ 198,045 |
Accounts Payable | Accounts payable consists of the following: December 31, 2016 2017 (In thousands) Data connectivity fees payable $ 28,731 $ 23,489 Trade accounts payable 4,654 5,210 Other 3,395 1,294 Total accounts payable $ 36,780 $ 29,993 |
Components of Accrued Compensation | Accrued compensation consists of the following: December 31, 2016 2017 (In thousands) Accrued bonus $ 20,028 $ 22,558 Accrued vacation (1) 4,099 364 Accrued payroll (2) 1,465 3,144 Other 2,075 2,453 Total accrued compensation $ 27,667 $ 28,519 (1) The Company incurred cash payments totaling approximately $3.9 million in January 2017 associated with a change to its paid time off program for exempt employees as of January 1, 2017. (2) For the year ended December 31, 2017, accrued payroll includes $2.6 million of severance expense payable related to restructuring activities. |
Components of Other Current Liabilities | Other current liabilities consist of the following: December 31, 2016 2017 (In thousands) Short term deferred rent $ 1,361 $ 2,264 Short term holdbacks and earnouts 2,873 50 Other 109 143 Total other current liabilities $ 4,343 $ 2,457 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Repurchases of Common Shares in Open Market | The Company repurchased shares of its common stock in the open market during the periods presented as follows: Total Number of Shares Purchased Average Repurchase Price Per Share Amount Year ended December 31, 2015: (In thousands) Third quarter 344,000 $ 32.43 $ 11,154 Second quarter 378,000 $ 42.29 $ 15,984 First quarter 275,000 $ 41.15 $ 11,317 Total 997,000 $ 38,455 Total Number of Shares Purchased Average Repurchase Price Per Share Amount Year ended December 31, 2017: (In thousands) Fourth quarter 399,638 $ 27.02 $ 10,800 |
Schedule of Common Stock Reserved for Issuance for Stock Options and Stock Purchase Plans | As of December 31, 2017, the Company has reserved the following shares of common stock for issuance in connection with: Stock options outstanding 4,635,510 Restricted stock units outstanding 2,390,910 Performance stock units outstanding 81,160 Stock awards available for grant 5,476,488 Total shares reserved 12,584,068 |
Summary of Option Activity under the 1998 Stock Plan and the 2009 Stock Incentive Plan | The following table summarizes option activity under the 1998 Stock Plan and the 2009 Stock Incentive Plan: Number of Options Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value Balance, January 1, 2015 4,148,998 $ 27.73 Granted 1,115,109 37.30 Exercised (546,511 ) 16.86 Forfeited (317,781 ) 39.63 Balance, December 31, 2015 4,399,815 30.65 Granted 1,831,432 27.05 Exercised (404,208 ) 16.39 Forfeited (369,946 ) 36.96 Balance, December 31, 2016 5,457,093 30.07 Granted 804,231 40.96 Exercised (933,245 ) 24.03 Forfeited (692,569 ) 35.45 Balance, December 31, 2017 4,635,510 $ 32.37 6.62 $ 13,915,173 Vested and expected to vest, December 31, 2017 4,635,510 $ 32.37 6.62 $ 13,915,173 Exercisable, December 31, 2017 2,616,627 $ 30.95 5.40 $ 11,208,649 |
Schedule of Weighted Average Assumptions Used to Value Options Granted | The following weighted average assumptions were used to value options granted: 2015 2016 2017 Expected life in years 6 6 6 Risk-free interest rate 1.72% 1.42% 2.05% Volatility 37% 43% 38% Dividend yield 0.8% 1.0% 0.7% |
Restricted Stock Units Activity | The following table summarizes RSU activity under the 2009 Stock Incentive Plan: Number of Shares Weighted Average Grant-Date Fair Value Weighted Average Remaining Term Aggregate Intrinsic Value Balance, January 1, 2015 844,722 $ 36.38 Granted 363,388 36.23 Vested and settled (1) (302,617 ) 34.90 Forfeited (90,676 ) 37.06 Balance, December 31, 2015 814,817 36.78 Granted 1,156,344 27.28 Vested and settled (1) (278,700 ) 36.15 Forfeited (95,140 ) 34.36 Balance, December 31, 2016 1,597,321 30.16 Granted 1,511,078 36.03 Vested and settled (1) (473,569 ) 31.95 Forfeited (243,920 ) 33.15 Balance, December 31, 2017 2,390,910 $ 33.21 1.72 $ 72,444,573 Expected to vest, December 31, 2017 2,390,910 $ 33.21 1.72 $ 72,444,573 (1) Vested and settled for the years ended December 31, 2015, 2016 and 2017 includes 100,337 shares, 104,109 shares and 157,196 shares, respectively, which were tendered in exchange for minimum tax withholdings. |
Performance Stock Units Activity | The following table summarizes unvested PSU activity under the 2009 Stock Incentive Plan: Number of Shares Weighted Average Grant-Date Fair Value Weighted Average Remaining Term Aggregate Intrinsic Value Balance, January 1, 2015 292,000 $ 43.32 Granted - - Vested and settled - - Forfeited - - Balance, December 31, 2015 292,000 43.32 Granted - - Vested and settled (38,797 ) 43.32 Forfeited (148,123 ) 43.27 Balance, December 31, 2016 105,080 43.39 Granted - - Vested and settled - - Forfeited (23,920 ) 43.16 Balance, December 31, 2017 81,160 $ 43.46 0.0 $ 2,459,148 Expected to vest, December 31, 2017 20,488 $ 43.46 0.0 $ 620,786 |
Schedule of Stock-Based Compensation by Functional Area | The following table summarizes the stock-based compensation by functional area: Year Ended December 31, 2015 2016 2017 (In thousands) Stock-based compensation: Cost of revenue $ 4,501 $ 7,974 $ 10,225 Research and development 5,631 6,012 7,575 Sales and marketing 7,643 9,610 8,355 General and administrative 7,918 9,604 9,703 Amortization of intangible assets 335 489 567 Total stock-based compensation $ 26,028 $ 33,689 $ 36,425 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share attributable to holders of common stock: Year Ended December 31, 2015 2016 2017 (In thousands, except per share data) Numerator (basic and diluted): Net income $ 31,617 $ 28,560 $ 46,660 Denominator (basic): Weighted average common shares outstanding 51,732 60,962 62,952 Denominator (diluted): Weighted average common shares outstanding 51,732 60,962 62,952 Dilutive stock options outstanding 903 602 808 Dilutive unvested restricted stock units 374 524 827 Dilutive unvested performance stock units 30 15 18 Net weighted average common shares outstanding 53,039 62,103 64,605 Net income per share attributable to holders of common stock: Basic $ 0.61 $ 0.47 $ 0.74 Diluted $ 0.60 $ 0.46 $ 0.72 |
Anti-dilutive Common Equivalent Shares | Diluted net income per share does not include the effect of the following anti-dilutive common equivalent shares: Year Ended December 31, 2015 2016 2017 (In thousands) Stock options outstanding 1,601 3,443 1,906 Restricted stock units outstanding 32 72 65 Total anti-dilutive common equivalent shares 1,633 3,515 1,971 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for Income Tax Expense (Benefit) | The Company is subject to income taxes only in the United States. Provision for income tax expense consists of the following: Year Ended December 31, 2015 2016 2017 (In thousands) Current expense: Federal $ 24,995 $ 19,580 $ 1,534 State 598 2,244 1,777 Total current 25,593 21,824 3,311 Deferred expense: Federal (7,968 ) (1,403 ) 34,532 State 239 291 2,108 Total deferred (7,729 ) (1,112 ) 36,640 Total provision for income taxes $ 17,864 $ 20,712 $ 39,951 |
Schedule of Difference Between Income Tax Expense (Benefit) and Federal Statutory Rate | The difference between income tax expense and the amount resulting from applying the federal statutory rate of 35% to net income is attributable to the following: Year Ended December 31, 2015 2016 2017 Federal tax at statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 1.4 % 3.6 % 4.1 % 2017 Tax Act impacts 0.0 % 0.0 % 8.8 % Nondeductible expenses 0.2 % 0.4 % 0.2 % Stock-based compensation -0.2 % 0.2 % 0.0 % Research and development credit -0.3 % -0.3 % -1.4 % Change in valuation allowance 0.0 % 0.0 % -0.2 % Other 0.0 % 3.1 % -0.4 % Income tax expense 36.1 % 42.0 % 46.1 % |
Components of Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2016 2017 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 14,046 $ 11,321 Tax credits 2,091 10,474 Deferred revenue 98 73 Stock-based compensation 23,763 17,942 Accrued expenses and reserves 15,017 3,945 Total gross deferred tax assets 55,015 43,755 Valuation allowance (162 ) - Net deferred tax assets 54,853 43,755 Deferred tax liabilities Fixed assets and intangible amortization (14,349 ) (14,954 ) Total deferred tax liabilities (14,349 ) (14,954 ) Net deferred tax assets $ 40,504 $ 28,801 |
Reconciliation of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: Year Ended December 31, 2016 2017 (In thousands) Balance, beginning of year $ 6,657 $ 6,672 Reductions for tax positions taken in the prior year - - Additions for tax positions taken in the prior year - - Additions for tax positions taken in the current year 15 281 Balance, end of year $ 6,672 $ 6,953 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum Future Lease Payments under All Non-Cancelable Operating and Capital Leases | The following table summarizes the Company’s contractual obligations as of December 31, 2017. Certain of these contractual obligations are reflected on the Company’s Consolidated Balance Sheets while others are disclosed as future obligations under GAAP. Purchase obligations represent non-cancelable, long-term contracts primarily related to software and data services, and includes a 5-year contract with a vendor for software services with a total commitment of $7.7 million. Capital Lease Operating Leases Purchase Obligations (In thousands) Year ending December 31, 2018 $ 155 $ 9,961 $ 3,849 2019 102 10,160 2,978 2020 69 7,670 1,659 2021 69 5,813 1,542 2022 1 4,314 1,541 Thereafter - 10,449 - Total minimum payments 396 $ 48,367 $ 11,569 Less: Amounts representing interest expense (23 ) Present value of net minimum lease payments 373 Less: Current obligations (144 ) Long-term obligations $ 229 |
Organization and Description 25
Organization and Description of the Business - Additional Information (Detail) | Dec. 31, 2017Store |
Retail Site [Member] | |
Organization And Description Of The Business [Line Items] | |
Number of stores | 140 |
Summary of Financial Assets Mea
Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - Money Market Funds [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of financial assets measured on recurring basis | $ 215,572 | $ 50,077 | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Fair value of financial assets measured on recurring basis | $ 215,572 | $ 50,077 | [1] |
[1] | Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. |
Basis of Presentation and Pri27
Basis of Presentation and Principles of Consolidation - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($)CustomerSegment | Dec. 31, 2016USD ($)CustomerCliff | Dec. 31, 2015USD ($)Customer | |
Significant Accounting Policies [Line Items] | |||
Goodwill impairment losses recognized | $ 0 | ||
Indefinite lived intangible assets | 0 | ||
Impairments on acquired intangible assets | $ 0 | ||
Number of reportable segment | Segment | 1 | ||
Platform setup fees recognition period | 7 years | ||
Direct response advertising costs amortization period, years | 3 years | ||
Capitalized direct response advertising costs | $ 2,500,000 | $ 3,500,000 | $ 4,400,000 |
Advertising expense | 21,600,000 | 19,900,000 | 8,200,000 |
Direct response advertising amortization and impairment | 3,700,000 | 4,800,000 | 5,500,000 |
Recognition of excess tax benefits from stock-based compensation | 10,200,000 | 13,400,000 | 10,500,000 |
Accounting Standards Update 2016-09 [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | |||
Significant Accounting Policies [Line Items] | |||
Recognition of excess tax benefits from stock-based compensation | 27,100,000 | ||
Increase to net cash provided by operating activities | 18,400,000 | 25,100,000 | |
Increase to net cash used in financing activities | $ 18,400,000 | $ 25,100,000 | |
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | |||
Significant Accounting Policies [Line Items] | |||
Cumulative impact on retained earnings | 24,400,000 | ||
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | |||
Significant Accounting Policies [Line Items] | |||
Cumulative impact on retained earnings | $ (1,100,000) | ||
Performance Stock Units [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of vesting cliffs | Cliff | 2 | ||
Performance Stock Units [Member] | Cliff vesting on January 1, 2016 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of stock vested | 60.00% | ||
Performance Stock Units [Member] | Cliff vesting on January 1, 2018 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of stock vested | 40.00% | ||
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, amortization period | 1 year | ||
Deferred sales commissions amortization period, years | 3 years | ||
Minimum [Member] | Performance Stock Units [Member] | |||
Significant Accounting Policies [Line Items] | |||
Target vesting percentage | 0.00% | ||
Minimum [Member] | Internal Use Software [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, amortization period | 2 years | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, amortization period | 20 years | ||
Deferred sales commissions amortization period, years | 5 years | ||
Maximum [Member] | Performance Stock Units [Member] | |||
Significant Accounting Policies [Line Items] | |||
Target vesting percentage | 140.00% | ||
Maximum [Member] | Internal Use Software [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, amortization period | 4 years | ||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk percentage, number of customers | Customer | 1 | 0 | |
Concentration risk percentage | 10.00% | 10.00% | |
Credit Concentration Risk [Member] | Revenue [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk percentage, number of customers | Customer | 1 | 0 | 1 |
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Estimated Useful Lives of Prope
Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives in Years | 3 years |
Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives in Years | 2 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives in Years | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives, description | life of the lease |
Capital lease equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives, description | life of the lease |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash And Cash Equivalents [Abstract] | ||||
Cash | $ 8,971 | $ 84,169 | ||
Money market fund | 215,572 | 50,077 | ||
Total cash and cash equivalents | $ 224,543 | $ 134,246 | $ 305,216 | $ 126,564 |
Cash and Cash Equivalents (Pare
Cash and Cash Equivalents (Parenthetical) (Detail) - USD ($) | Dec. 31, 2017 | Aug. 01, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents [Line Items] | |||
Sweep money market account, daily cash account balance | $ 215,572,000 | $ 50,077,000 | |
Daily Sweep Account [Member] | |||
Cash And Cash Equivalents [Line Items] | |||
Sweep money market account, daily cash account balance | $ 0 |
Components of Property and Equi
Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Abstract] | ||
Computer equipment | $ 14,049 | $ 13,220 |
Computer software | 4,034 | 4,279 |
Furniture, fixtures and equipment | 16,083 | 13,641 |
Leasehold improvements | 25,372 | 20,083 |
Total property and equipment | 59,538 | 51,223 |
Less: Accumulated depreciation and amortization | (33,658) | (26,691) |
Property and equipment, net | $ 25,880 | $ 24,532 |
Balance Sheet Items - Additiona
Balance Sheet Items - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 8,505 | $ 8,946 | $ 6,092 |
Original costs | 59,538 | 51,223 | |
Accumulated depreciation on the leased assets | 33,658 | 26,691 | |
Capital lease equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Original costs | 500 | 700 | |
Accumulated depreciation on the leased assets | $ 200 | $ 400 |
Schedule of Goodwill (Detail)
Schedule of Goodwill (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Goodwill [Line Items] | |||
Balance at beginning of the year | [1] | $ 312,020,000 | |
Balance at the end of the year | [1] | 312,020,000 | $ 312,020,000 |
Adjustments to goodwill | $ 0 | ||
The Mutual Fund Store [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquisitions | 293,720,000 | ||
2016 Franchise [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquisitions | $ 18,300,000 | ||
[1] | There is no accumulated impairment of goodwill for the periods presented. There were no adjustments to goodwill for the year ended December 31, 2017. |
Schedule of Goodwill (Parenthet
Schedule of Goodwill (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Accumulated impairment of goodwill | $ 0 |
Adjustments to goodwill | $ 0 |
Schedule of Intangible Assets (
Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 264,764 | $ 267,370 |
Accumulated Amortization | 66,719 | 61,619 |
Net Carrying Amount | $ 198,045 | 205,751 |
Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life (years) | 1 year | |
Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life (years) | 20 years | |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 164,338 | 164,338 |
Accumulated Amortization | 16,675 | 7,781 |
Net Carrying Amount | $ 147,663 | 156,557 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life (years) | 14 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life (years) | 19 years | |
Franchise Agreements and Reacquired Franchisee Rights [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,697 | 2,697 |
Accumulated Amortization | 787 | 498 |
Net Carrying Amount | $ 1,910 | 2,199 |
Franchise Agreements and Reacquired Franchisee Rights [Member] | Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life (years) | 1 year | |
Franchise Agreements and Reacquired Franchisee Rights [Member] | Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life (years) | 9 years | |
Favorable Leases, Net [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 140 | 140 |
Accumulated Amortization | 46 | 22 |
Net Carrying Amount | $ 94 | 118 |
Useful Life (years) | 6 years | |
Trademarks/Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 39,230 | 39,230 |
Accumulated Amortization | 3,785 | 1,810 |
Net Carrying Amount | $ 35,445 | 37,420 |
Useful Life (years) | 20 years | |
Internal Use Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 58,359 | 60,965 |
Accumulated Amortization | 45,426 | 51,508 |
Net Carrying Amount | $ 12,933 | $ 9,457 |
Internal Use Software [Member] | Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life (years) | 2 years | |
Internal Use Software [Member] | Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful Life (years) | 4 years |
Schedule of Amortization Expens
Schedule of Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets, including internal use software | $ 17,028 | $ 15,408 | $ 4,900 | |
Customer Relationships [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets, including internal use software | 8,894 | 7,781 | ||
Franchise Agreements and Reacquired Franchisee Rights [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets, including internal use software | 289 | 498 | ||
Favorable Leases, Net [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets, including internal use software | 24 | 22 | ||
Trademarks/Trade Names [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets, including internal use software | 1,975 | 1,810 | ||
Internal Use Software [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets, including internal use software | [1] | $ 5,846 | $ 5,297 | |
[1] | For the year ended December 31, 2016 and 2017, internal use software amortization included approximately $0.5 million and $0.6 million of stock-based compensation expense, respectively. |
Schedule of Amortization Expe37
Schedule of Amortization Expense Related to Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite Lived Intangible Assets [Line Items] | |||
Total stock-based compensation | $ 36,425 | $ 33,689 | $ 26,028 |
Amortization of Intangible Assets [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Total stock-based compensation | $ 567 | $ 489 | $ 335 |
Schedule of Estimated Future Am
Schedule of Estimated Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 16,910 | |
2,019 | 14,957 | |
2,020 | 14,080 | |
2,021 | 11,552 | |
2,022 | 11,102 | |
Thereafter | 129,444 | |
Net Carrying Amount | $ 198,045 | $ 205,751 |
Accounts Payable (Detail)
Accounts Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Data connectivity fees payable | $ 23,489 | $ 28,731 |
Trade accounts payable | 5,210 | 4,654 |
Other | 1,294 | 3,395 |
Total accounts payable | $ 29,993 | $ 36,780 |
Components of Accrued Compensat
Components of Accrued Compensation (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Related Liabilities Current [Abstract] | |||
Accrued bonus | $ 22,558 | $ 20,028 | |
Accrued vacation | [1] | 364 | 4,099 |
Accrued payroll | [2] | 3,144 | 1,465 |
Other | 2,453 | 2,075 | |
Total accrued compensation | $ 28,519 | $ 27,667 | |
[1] | The Company incurred cash payments totaling approximately $3.9 million in January 2017 associated with a change to its paid time off program for exempt employees as of January 1, 2017. | ||
[2] | For the year ended December 31, 2017, accrued payroll includes $2.6 million of severance expense payable related to restructuring activities. |
Components of Accrued Compens41
Components of Accrued Compensation (Parenthetical) (Detail) - USD ($) $ in Thousands | 1 Months Ended | |||
Jan. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Balance Sheet Components [Line Items] | ||||
Paid time off program cash payments to employees | $ 3,900 | |||
Accrued payroll | [1] | $ 3,144 | $ 1,465 | |
Employee Severance [Member] | ||||
Balance Sheet Components [Line Items] | ||||
Accrued payroll | $ 2,600 | |||
[1] | For the year ended December 31, 2017, accrued payroll includes $2.6 million of severance expense payable related to restructuring activities. |
Components of Other Current Lia
Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Current [Abstract] | ||
Short term deferred rent | $ 2,264 | $ 1,361 |
Short term holdbacks and earnouts | 50 | 2,873 |
Other | 143 | 109 |
Total other current liabilities | $ 2,457 | $ 4,343 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands | Feb. 01, 2016Franchise | Oct. 31, 2016 | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | |
Business Acquisition [Line Items] | ||||||
Goodwill | [1] | $ 312,020 | $ 312,020 | |||
The Mutual Fund Store and Franchises [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, agreement date | Nov. 5, 2015 | |||||
Number of franchised store agreements | Franchise | 21 | |||||
Total consideration | 548,400 | |||||
Cash consideration | 274,600 | |||||
Goodwill | 312,000 | |||||
Transaction related costs | $ 6,600 | $ 2,700 | ||||
Acquisition of Franchises October 2016 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, agreement date | Oct. 31, 2016 | |||||
[1] | There is no accumulated impairment of goodwill for the periods presented. There were no adjustments to goodwill for the year ended December 31, 2017. |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Feb. 14, 2018$ / shares | Feb. 29, 2016shares | Apr. 30, 2010shares | Dec. 31, 2017USD ($)Event$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / shares | Feb. 23, 2018shares | Oct. 24, 2017USD ($) |
Class Of Stock [Line Items] | ||||||||
Common stock, shares authorized | shares | 500,000,000 | 500,000,000 | ||||||
Common stock, shares issued | shares | 64,725,439 | 63,476,000 | ||||||
Common stock, shares outstanding | shares | 63,048,801 | 62,199,000 | ||||||
Dividends declared per share of common stock | $ / shares | $ 0.28 | $ 0.28 | $ 0.28 | |||||
Dividend payable | $ 4,411,000 | $ 4,350,000 | $ 3,615,000 | |||||
Dividends paid date | 2018-01 | |||||||
Share repurchase program, utilized amount | $ 58,437,000 | 47,637,000 | ||||||
Number of shares reserved for future grant | shares | 12,584,068 | |||||||
Recognition of excess tax benefits from stock-based compensation | $ 10,200,000 | 13,400,000 | 10,500,000 | |||||
Stock Options Outstanding [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Number of shares reserved for future grant | shares | 4,635,510 | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Number of shares reserved for future grant | shares | 2,390,910 | |||||||
Fair value of common stock | $ / shares | $ 30.30 | |||||||
Unrecognized compensation cost | $ 48,400,000 | |||||||
Weighted average recognition period of unrecognized compensation cost, years | 1 year 8 months 12 days | |||||||
Intrinsic value of unvested stock units | $ 72,400,000 | |||||||
Intrinsic value of RSU vested | 17,100,000 | 9,000,000 | 10,800,000 | |||||
Total fair value of shares vested | $ 15,100,000 | $ 10,100,000 | 10,600,000 | |||||
Performance Stock Units [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Number of shares reserved for future grant | shares | 81,160 | |||||||
Fair value of common stock | $ / shares | $ 30.30 | |||||||
Performance Stock Units [Member] | Executive Officer | ||||||||
Class Of Stock [Line Items] | ||||||||
Shares issued | shares | 38,797 | |||||||
Performance Stock Units [Member] | Cliff vesting on January 1, 2016 [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Vesting percentage | 60.00% | |||||||
Performance Stock Units [Member] | Cliff vesting on January 1, 2018 [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Vesting percentage | 40.00% | |||||||
Stock Option Plan Nineteen Ninety Eight [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock shares reserved for future issuance | shares | 305,155 | |||||||
Stock purchase rights expiration period, days | 30 days | |||||||
Stock purchase rights | Stock purchase rights have a 30-day expiration period and options expire no later than 10 years from the date of grant. | |||||||
Options maximum exercise period upon termination, months | 3 months | |||||||
Stock Incentive Plan 2009 [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock shares reserved for future issuance | shares | 6,802,425 | |||||||
Options expiration period | 10 years | |||||||
Options maximum exercise period upon termination, months | 3 months | |||||||
Options granted vesting description | Options granted will generally vest over a period of four years with 25% vesting on the first anniversary of the grant date and 1/48 vesting per month thereafter. | |||||||
Number of stock vesting cliffs | Event | 2 | |||||||
Grants provide for partial acceleration in event of involuntary termination, period | 12 months | |||||||
Shares subject to repurchase | shares | 0 | |||||||
2009 Stock Incentive Plan expiration Month and Year | 2026-03 | |||||||
Stock Incentive Plan 2009 [Member] | Executive Officer | ||||||||
Class Of Stock [Line Items] | ||||||||
Accelerated vesting percentage | 100.00% | |||||||
Stock Incentive Plan 2009 [Member] | First Anniversary Of Grant Date [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Vesting percentage | 25.00% | |||||||
Stock Incentive Plan 2009 [Member] | Vesting Month After First Anniversary [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Vesting percentage | 2.0833% | |||||||
Stock Incentive Plan 2009 [Member] | Cliff vesting on January 1, 2016 [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Vesting percentage | 60.00% | |||||||
Eligibility of stock vesting date | Jan. 1, 2016 | |||||||
Stock Incentive Plan 2009 [Member] | Cliff vesting on January 1, 2018 [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Vesting percentage | 40.00% | |||||||
Eligibility of stock vesting date | Jan. 1, 2018 | |||||||
Stock Incentive Plan 2009 [Member] | Stock Options Outstanding [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Share-based award vesting period | 4 years | |||||||
Stock Incentive Plan 2009 [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Share-based award vesting period | 4 years | |||||||
Vesting percentage | 25.00% | |||||||
Stock Awards Available For Grant [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Number of shares reserved for future grant | shares | 5,476,488 | |||||||
Stock Option Plans [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Fair value of common stock | $ / shares | $ 30.30 | |||||||
Intrinsic value of options exercised | $ 16,000,000 | $ 6,200,000 | $ 12,900,000 | |||||
Weighted average fair value per share of options granted | $ / shares | $ 15.24 | $ 10.35 | $ 13.17 | |||||
Cash received from employees for stock option exercises | $ 22,400,000 | $ 6,600,000 | $ 9,200,000 | |||||
Total fair value of shares vested | 13,900,000 | $ 11,200,000 | $ 11,200,000 | |||||
Unrecognized compensation cost | $ 11,300,000 | |||||||
Weighted average recognition period of unrecognized compensation cost, years | 1 year 2 months 12 days | |||||||
Maximum [Member] | Stock Option Plan Nineteen Ninety Eight [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Options expiration period | 10 years | |||||||
Maximum [Member] | Stock Incentive Plan 2009 [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Vesting percentage | 140.00% | |||||||
Minimum [Member] | Stock Incentive Plan 2009 [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Vesting percentage | 0.00% | |||||||
Common stock [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Share repurchase program, utilized amount | $ 10,800,000 | |||||||
Value of shares that may yet be purchased under the repurchase program | $ 49,200,000 | |||||||
Common stock [Member] | Maximum [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 60,000,000 | |||||||
Subsequent Event [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends to be paid date | Apr. 5, 2018 | |||||||
Dividend payable record date | Mar. 22, 2018 | |||||||
Subsequent Event [Member] | Performance Stock Units [Member] | Executive Officer | ||||||||
Class Of Stock [Line Items] | ||||||||
Shares issued | shares | 20,488 | |||||||
Quarterly Cash Dividend [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends declared per share of common stock | $ / shares | $ 0.28 | |||||||
Quarterly Cash Dividend [Member] | Subsequent Event [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends declared per share of common stock | $ / shares | $ 0.08 |
Repurchases of Common Shares in
Repurchases of Common Shares in Open Market (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||
Total Number of Shares Purchased | 399,638 | 344,000 | 378,000 | 275,000 | 997,000 | |
Average Repurchase Price Per Share | $ 27.02 | $ 32.43 | $ 42.29 | $ 41.15 | ||
Repurchases of Common Stock | $ 10,800 | $ 11,154 | $ 15,984 | $ 11,317 | $ 10,800 | $ 38,455 |
Shares of Common Stock Reserved
Shares of Common Stock Reserved for Issuance (Detail) | Dec. 31, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 12,584,068 |
Stock Options Outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 4,635,510 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 2,390,910 |
Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 81,160 |
Stock Awards Available For Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 5,476,488 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Options, Beginning Balance | 5,457,093 | 4,399,815 | 4,148,998 |
Number of Options Granted | 804,231 | 1,831,432 | 1,115,109 |
Number of Options Exercised | (933,245) | (404,208) | (546,511) |
Number of Options Forfeited | (692,569) | (369,946) | (317,781) |
Number of Options, Ending Balance | 4,635,510 | 5,457,093 | 4,399,815 |
Number of Options Vested and expected to vest | 4,635,510 | ||
Number of Options, Exercisable | 2,616,627 | ||
Options Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 30.07 | $ 30.65 | $ 27.73 |
Options Granted, Weighted Average Exercise Price | 40.96 | 27.05 | 37.30 |
Options Exercised, Weighted Average Exercise Price | 24.03 | 16.39 | 16.86 |
Options Forfeited, Weighted Average Exercise Price | 35.45 | 36.96 | 39.63 |
Options Outstanding, Weighted Average Exercise Price, Ending Balance | 32.37 | $ 30.07 | $ 30.65 |
Option Vested and expected to vest, Weighted Average Exercise Price | 32.37 | ||
Option Exercisable, Weighted Average Exercisable Price | $ 30.95 | ||
Options Outstanding, Weighted Average Remaining Term | 6 years 7 months 13 days | ||
Options Vested and expected to vest, Weighted Average Remaining Term | 6 years 7 months 13 days | ||
Options Exercisable, Weighted Average Remaining Term | 5 years 4 months 24 days | ||
Options Outstanding, Aggregate Intrinsic Value | $ 13,915,173 | ||
Options Vested and expected to vest, Aggregate Intrinsic Value | 13,915,173 | ||
Options Exercisable, Aggregate Intrinsic Value | $ 11,208,649 |
Weighted Average Assumptions To
Weighted Average Assumptions To Value Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected life in years | 6 years | 6 years | 6 years |
Risk-free interest rate | 2.05% | 1.42% | 1.72% |
Volatility | 38.00% | 43.00% | 37.00% |
Dividend yield | 0.70% | 1.00% | 0.80% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares, Beginning balance | 1,597,321 | 814,817 | 844,722 | |
Number of Shares, Granted | 1,511,078 | 1,156,344 | 363,388 | |
Number of Shares, Vested and settled | [1] | (473,569) | (278,700) | (302,617) |
Number of Shares, Forfeited | (243,920) | (95,140) | (90,676) | |
Number of Shares, Ending balance | 2,390,910 | 1,597,321 | 814,817 | |
Number of Shares, Expected to vest | 2,390,910 | |||
Weighted Average Grant-Date Fair Value, Beginning balance | $ 30.16 | $ 36.78 | $ 36.38 | |
Weighted Average Grant-Date Fair Value, Granted | 36.03 | 27.28 | 36.23 | |
Weighted Average Grant-Date Fair Value, Vested and settled | [1] | 31.95 | 36.15 | 34.90 |
Weighted Average Grant-Date Fair Value, Forfeited | 33.15 | 34.36 | 37.06 | |
Weighted Average Grant-Date Fair Value, Ending Balance | 33.21 | $ 30.16 | $ 36.78 | |
Weighted Average Grant-Date Fair Value, Expected to vest | $ 33.21 | |||
Weighted Average Remaining Term, Balance | 1 year 8 months 19 days | |||
Weighted Average Remaining Term, Expected to vest | 1 year 8 months 19 days | |||
Aggregate Intrinsic Value, Balance | $ 72,444,573 | |||
Aggregate Intrinsic Value, Expected to vest | $ 72,444,573 | |||
[1] | Vested and settled for the years ended December 31, 2015, 2016 and 2017 includes 100,337 shares, 104,109 shares and 157,196 shares, respectively, which were tendered in exchange for minimum tax withholdings. |
Summary of Restricted Stock U50
Summary of Restricted Stock Units Activity (Parenthetical) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Paid for Tax Withholding for Share Based Compensation | 157,196 | 104,109 | 100,337 |
Summary of Performance Stock Un
Summary of Performance Stock Unit Information (Detail) - Performance Stock Units [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Beginning balance | 105,080 | 292,000 | 292,000 |
Number of Shares, Vested and settled | (38,797) | ||
Number of Shares, Forfeited | (23,920) | (148,123) | |
Number of Shares, Ending balance | 81,160 | 105,080 | 292,000 |
Number of Shares, Expected to vest | 20,488 | ||
Weighted Average Grant-Date Fair Value, Beginning balance | $ 43.39 | $ 43.32 | $ 43.32 |
Weighted Average Grant-Date Fair Value, Vested and settled | 43.32 | ||
Weighted Average Grant-Date Fair Value, Forfeited | 43.16 | 43.27 | |
Weighted Average Grant-Date Fair Value, Ending Balance | 43.46 | $ 43.39 | $ 43.32 |
Weighted Average Grant-Date Fair Value, Expected to vest | $ 43.46 | ||
Weighted Average Remaining Term, Balance | 0 years | ||
Weighted Average Remaining Term, Expected to vest | 0 years | ||
Aggregate Intrinsic Value, Balance | $ 2,459,148 | ||
Aggregate Intrinsic Value, Expected to vest | $ 620,786 |
Stock-Based Compensation by Fun
Stock-Based Compensation by Functional Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 36,425 | $ 33,689 | $ 26,028 |
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 10,225 | 7,974 | 4,501 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 7,575 | 6,012 | 5,631 |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 8,355 | 9,610 | 7,643 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 9,703 | 9,604 | 7,918 |
Amortization of Intangible Assets [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 567 | $ 489 | $ 335 |
Computation of Basic and Dilute
Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator (basic and diluted): | |||
Net income | $ 46,660 | $ 28,560 | $ 31,617 |
Denominator (basic): | |||
Weighted average common shares outstanding | 62,952 | 60,962 | 51,732 |
Denominator (diluted): | |||
Weighted average common shares outstanding | 62,952 | 60,962 | 51,732 |
Net weighted average common shares outstanding (diluted) | 64,605 | 62,103 | 53,039 |
Net income per share attributable to holders of common stock: | |||
Basic | $ 0.74 | $ 0.47 | $ 0.61 |
Diluted | $ 0.72 | $ 0.46 | $ 0.60 |
Stock Options Outstanding [Member] | |||
Denominator (diluted): | |||
Incremental common shares included in the diluted EPS calculation | 808 | 602 | 903 |
Restricted Stock Units (RSUs) [Member] | |||
Denominator (diluted): | |||
Incremental common shares included in the diluted EPS calculation | 827 | 524 | 374 |
Performance Stock Units [Member] | |||
Denominator (diluted): | |||
Incremental common shares included in the diluted EPS calculation | 18 | 15 | 30 |
Anti-dilutive Common Equivalent
Anti-dilutive Common Equivalent Shares (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive common equivalent shares | 1,971 | 3,515 | 1,633 |
Stock Options Outstanding [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive common equivalent shares | 1,906 | 3,443 | 1,601 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive common equivalent shares | 65 | 72 | 32 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) | Feb. 01, 2016shares |
The Mutual Fund Store [Member] | |
Business Acquisition Equity Interests Issued Or Issuable [Line Items] | |
Common Stock Shares Issued | 9,885,889 |
Provision for Income Tax Expens
Provision for Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current expense, Federal | $ 1,534 | $ 19,580 | $ 24,995 |
Current expense, State | 1,777 | 2,244 | 598 |
Total current | 3,311 | 21,824 | 25,593 |
Deferred expense, Federal | 34,532 | (1,403) | (7,968) |
Deferred expense, State | 2,108 | 291 | 239 |
Total deferred | 36,640 | (1,112) | (7,729) |
Total provision for income taxes | $ 39,951 | $ 20,712 | $ 17,864 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Dec. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes [Line Items] | |||||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | ||
Provisional tax expense for the impact of 2017 Tax Act | $ 7.6 | ||||
Income tax expense due to non-deductible transaction expenses related to acquisition activity | $ 1.5 | ||||
Other | (0.40%) | 3.10% | 0.00% | ||
Unrecognized tax benefits that would affect the effective tax rate if recognized | $ 5.5 | ||||
Federal Research Credit [Member] | |||||
Income Taxes [Line Items] | |||||
Federal research credit carryforwards expire | expire through 2037 | ||||
State of California [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 68.9 | ||||
Research credit carryforwards | 8.6 | ||||
Internal Revenue Service (IRS) [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 39.3 | ||||
Research credit carryforwards | $ 6.8 | ||||
Internal Revenue Service (IRS) [Member] | State of California [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards expire through | 2,036 | ||||
Accounting Standards Update 2016-09 [Member] | |||||
Income Taxes [Line Items] | |||||
Decrease in effective income tax rate | (2.30%) | ||||
Scenario Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
Federal statutory tax rate | 21.00% | ||||
Additional paid-in capital [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax associated with stock-based compensation | $ 18.4 | $ 25.1 |
Difference Between Income Tax E
Difference Between Income Tax Expense and Amount Resulting From Applying Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal tax at statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 4.10% | 3.60% | 1.40% |
2017 Tax Act impacts | 8.80% | 0.00% | 0.00% |
Nondeductible expenses | 0.20% | 0.40% | 0.20% |
Stock-based compensation | (0.00%) | 0.20% | (0.20%) |
Research and development credit | (1.40%) | (0.30%) | (0.30%) |
Change in valuation allowance | (0.20%) | 0.00% | 0.00% |
Other | (0.40%) | 3.10% | 0.00% |
Income tax expense | 46.10% | 42.00% | 36.10% |
Components of Company's Deferre
Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 11,321 | $ 14,046 |
Tax credits | 10,474 | 2,091 |
Deferred revenue | 73 | 98 |
Stock-based compensation | 17,942 | 23,763 |
Accrued expenses and reserves | 3,945 | 15,017 |
Total gross deferred tax assets | 43,755 | 55,015 |
Valuation allowance | (162) | |
Net deferred tax assets | 43,755 | 54,853 |
Fixed assets and intangible amortization | (14,954) | (14,349) |
Total deferred tax liabilities | (14,954) | (14,349) |
Net deferred tax assets | $ 28,801 | $ 40,504 |
Reconciliation Of Unrecognized
Reconciliation Of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Balance, beginning of year | $ 6,672 | $ 6,657 |
Additions for tax positions taken in the current year | 281 | 15 |
Balance, end of year | $ 6,953 | $ 6,672 |
Savings Plan - Additional Infor
Savings Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Percentage of defined benefit plan of employees contribution under statutory limit | 75.00% | ||
Percentage of defined benefit plan of employees contribution under statutory limit | 100.00% | 100.00% | 100.00% |
Percentage of employee contribution of their pre-tax salaries | 4.00% | 4.00% | 4.00% |
Defined benefit plan employee contribution | $ 4.3 | $ 3.7 | $ 2.3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Feb. 01, 2016USD ($) | Feb. 29, 2016ft² | Dec. 31, 2017USD ($)StoreState | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Commitments and Contingencies [Line Items] | |||||
Accrued rent | $ 13,000,000 | $ 13,600,000 | |||
Operating leases, rent expense | $ 9,000,000 | 8,300,000 | $ 3,900,000 | ||
Capital leases terminate | The Company entered into various office equipment capital leases which terminate in between April 2019 and January 2022. | ||||
Number of states in which operating leases acquired | State | 35 | ||||
Service level commitments impact on operating description | The maximum total commitments under these obligations would have less than a $1.0 million impact on the Company’s annual operating results as of December 31, 2017. | ||||
Self insurance plan stop loss policy threshold limit for individual claim amount | $ 100,000 | ||||
Self insurance plan stop loss policy threshold limit for cumulative medical claim percentage | 120.00% | ||||
Accrued Compensation and Benefits [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Liability for self-insured medical claims | $ 700,000 | $ 600,000 | |||
Retail Site [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Lease expiration month and year | 2027-07 | ||||
Number of acquired advisor center location | Store | 140 | ||||
Overland Park, Kansas [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Lease expiration month and year | 2027-03 | ||||
Tenant improvement allowance | $ 1,800,000 | ||||
The Mutual Fund Store [Member] | Overland Park, Kansas [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Lease expiration month and year | 2016-09 | ||||
New square foot headquarters office space | ft² | 33,100 | ||||
Software Services [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Non-cancellable long-term contract period | 5 years | ||||
Non-cancellable long-term contract amount | $ 7,700,000 | ||||
Maximum [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Service level commitments impact on operating | $ 1,000,000 | ||||
Office Equipment Capital Leases [Member] | Minimum [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Lease expiration month and year | 2019-04 | ||||
Office Equipment Capital Leases [Member] | Maximum [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Lease expiration month and year | 2022-01 |
Minimum Future Lease Payments u
Minimum Future Lease Payments under All Non-Cancelable Operating and Capital Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Capital Lease | |
2,018 | $ 155 |
2,019 | 102 |
2,020 | 69 |
2,021 | 69 |
2,022 | 1 |
Total minimum payments | 396 |
Less: Amounts representing interest expense | (23) |
Present value of net minimum lease payments | 373 |
Less: Current obligations | (144) |
Long-term obligations | 229 |
Operating Lease | |
2,018 | 9,961 |
2,019 | 10,160 |
2,020 | 7,670 |
2,021 | 5,813 |
2,022 | 4,314 |
Thereafter | 10,449 |
Total minimum payments | 48,367 |
Purchase Obligation | |
2,018 | 3,849 |
2,019 | 2,978 |
2,020 | 1,659 |
2,021 | 1,542 |
2,022 | 1,541 |
Total minimum payments | $ 11,569 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Stock Incentive Plan 2009 [Member] - Stock Options and RSUs [Member] - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Feb. 23, 2018USD ($) | |
Subsequent Event [Line Items] | |
Share based compensation expense | $ 11 |
Equity awards, vesting period | 4 years |