Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.3
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Estimated Useful Lives of Property, Equipment and Software
Property, equipment, and software are recorded at cost less accumulated depreciation and amortization, which are computed using the straight-line method over the following estimated useful lives:
Data processing and communications equipment
3 - 5 years
Furniture, fixtures, and other equipment
3 - 5 years
Software
3 - 5 years
Leasehold improvements
Shorter of lease term or estimated useful life
Property, equipment, and software consisted of the following at December 31, 2018 and 2017:
 
 
December 31,
 
 
2018
 
2017
 
 
(in thousands)
Leasehold improvements
 
$
63,391

 
$
59,179

Data processing and communications equipment
 
68,015

 
83,922

Furniture, fixtures, and other equipment
 
33,840

 
28,752

Software
 
131,437

 
107,924

Property, equipment, and software, gross
 
296,683

 
279,777

Less: Accumulated depreciation and amortization
 
(143,155
)
 
(131,349
)
Property, equipment, and software, net
 
$
153,528

 
$
148,428

Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following at December 31, 2018 and 2017:
 
 
December 31,
 
 
2018
 
2017
 
 
(in thousands)
Accrued compensation, payroll taxes, and benefits
 
$
29,405

 
$
25,677

Sales tax obligations
 
3,673

 
4,930

Current portion of liabilities related to acquisitions
 
47,173

 
34,430

Lease-related liabilities
 
2,640

 
2,288

Other current liabilities
 
12,591

 
12,054

Total accrued expenses and other current liabilities
 
$
95,482

 
$
79,379

Other Long-Term Liabilities
 
 
December 31,
 
 
2018
 
2017
 
 
(in thousands)
Accrued compensation, payroll taxes, and benefits
 
$
29,405

 
$
25,677

Sales tax obligations
 
3,673

 
4,930

Current portion of liabilities related to acquisitions
 
47,173

 
34,430

Lease-related liabilities
 
2,640

 
2,288

Other current liabilities
 
12,591

 
12,054

Total accrued expenses and other current liabilities
 
$
95,482

 
$
79,379


Other long-term liabilities consisted of the following at December 31, 2018 and 2017:
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The cumulative effects of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows:
 
Balance at
December 31, 2017
 
Adjustments due
to ASU 2014-09
 
Balance at
January 1, 2018
 
(in thousands)
Assets
 
 
 
 
 
Accounts receivable, less allowances
$
124,505

 
$
(7,925
)
 
$
116,580

Other current assets
$
6,622

 
$
2,771

 
$
9,393

Deferred tax assets, net
$
44,887

 
$
(780
)
 
$
44,107

Other assets
$
11,010

 
$
4,459

 
$
15,469

Liabilities
 
 
 
 
 
Current portion of deferred revenue
$
116,622

 
$
(3,696
)
 
$
112,926

Stockholders’ Equity
 
 
 
 
 
Accumulated deficit
$
(75,046
)
 
$
2,221

 
$
(72,825
)
The effects of those adjustments to the Consolidated Statements of Cash Flows have been summarized in the table below:
 
 
Originally Reported
 
Effect of Change
 
As Adjusted
 
 
(in thousands)
Statement of Cash Flows for the year ended December 31, 2017
 
 
 
 
 
 
Net cash provided by operating activities
 
$
137,327

 
$
2,936

 
$
140,263

Net cash used in investing activities
 
$
(709,274
)
 
$
9,412

 
$
(699,862
)
Cash, cash equivalents and restricted cash at end of period
 
$
69,343

 
$
96,002

 
$
165,345

 
 
 
 
 
 
 
Statement of Cash Flows for the year ended December 31, 2016
 
 
 
 
 
 
Net cash provided by operating activities
 
$
136,216

 
$
(6,767
)
 
$
129,449

Net cash used in investing activities
 
$
(145,141
)
 
$
4,960

 
$
(140,181
)
Cash, cash equivalents and restricted cash at end of period
 
$
104,886

 
$
83,654

 
$
188,540

The following tables summarize the effects of the adoption of ASU 2014-09 on selected line items within our Consolidated Statements of Operations and Balance Sheets:
 
Year Ended December 31, 2018
 
As reported
 
Balances without adoption of ASU 2014-09
 
Effect of Change
on Net Income
Higher/(Lower)
 
(in thousands)
Revenue
 
 
 
 
 
On demand
$
833,709

 
$
835,465

 
$
(1,756
)
Professional and other
35,771

 
32,886

 
2,885

Total revenue
$
869,480

 
$
868,351

 
$
1,129

Operating expenses
 
 
 
 
 
Sales and marketing
$
166,607

 
$
174,578

 
$
7,971

 
 
 
 
 
 
Net income before income taxes
$
34,300

 
$
25,200

 
$
9,100

Income tax expense (benefit)
(425
)
 
(2,608
)
 
(2,183
)
Net income
$
34,725

 
$
27,808

 
$
6,917

 
Balances at December 31, 2018 - as reported
 
Balances at December 31, 2018 without adoption of ASU 2014-09
 
Effect of Change
Higher/(Lower)
 
(in thousands)
Assets
 
 
 
 
 
Accounts receivable, less allowances
$
123,596

 
$
130,742

 
$
(7,146
)
Other current assets
$
15,185

 
$
8,198

 
$
6,987

Other assets
$
20,393

 
$
12,114

 
$
8,279

Liabilities
 
 
 
 
 
Current portion of deferred revenue
$
120,704

 
$
125,078

 
$
(4,374
)
Deferred revenue
$
4,902

 
$
4,902

 
$