Delaware | 94-3156479 | |
(State or Other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1 Wayside Road Burlington, Massachusetts | 01803 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||||
Item 1. | Condensed Consolidated Financial Statements (unaudited): | |||
a) | Consolidated Statements of Operations for the three months ended December 31, 2016 and 2015 | |||
b) | Consolidated Statements of Comprehensive Loss for the three months ended December 31, 2016 and 2015 | |||
c) | Consolidated Balance Sheets at December 31, 2016 and September 30, 2016 | |||
d) | Consolidated Statements of Cash Flows for the three months ended December 31, 2016 and 2015 | |||
e) | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
Item 1. | ||||
Item 1A. | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
Item 5. | ||||
Item 6. | ||||
Certifications |
Three Months Ended December 31, | |||||||
2016 | 2015 | ||||||
(Unaudited) (In thousands, except per share amounts) | |||||||
Revenues: | |||||||
Professional services and hosting | $ | 253,417 | $ | 227,135 | |||
Product and licensing | 151,752 | 179,050 | |||||
Maintenance and support | 82,489 | 79,930 | |||||
Total revenues | 487,658 | 486,115 | |||||
Cost of revenues: | |||||||
Professional services and hosting | 164,892 | 153,259 | |||||
Product and licensing | 18,378 | 23,412 | |||||
Maintenance and support | 13,598 | 13,296 | |||||
Amortization of intangible assets | 15,542 | 15,631 | |||||
Total cost of revenues | 212,410 | 205,598 | |||||
Gross profit | 275,248 | 280,517 | |||||
Operating expenses: | |||||||
Research and development | 66,322 | 70,525 | |||||
Sales and marketing | 101,516 | 100,590 | |||||
General and administrative | 39,790 | 40,501 | |||||
Amortization of intangible assets | 27,859 | 27,033 | |||||
Acquisition-related costs, net | 9,026 | 2,480 | |||||
Restructuring and other charges, net | 6,703 | 7,888 | |||||
Total operating expenses | 251,216 | 249,017 | |||||
Income from operations | 24,032 | 31,500 | |||||
Other income (expense): | |||||||
Interest income | 1,023 | 883 | |||||
Interest expense | (38,021 | ) | (29,880 | ) | |||
Other expense, net | (610 | ) | (6,801 | ) | |||
Loss before income taxes | (13,576 | ) | (4,298 | ) | |||
Provision for income taxes | 10,353 | 7,767 | |||||
Net loss | $ | (23,929 | ) | $ | (12,065 | ) | |
Net loss per share: | |||||||
Basic | $ | (0.08 | ) | $ | (0.04 | ) | |
Diluted | $ | (0.08 | ) | $ | (0.04 | ) | |
Weighted average common shares outstanding: | |||||||
Basic | 288,953 | 307,794 | |||||
Diluted | 288,953 | 307,794 |
Three Months Ended December 31, | |||||||
2016 | 2015 | ||||||
(Unaudited) | |||||||
(In thousands) | |||||||
Net loss | $ | (23,929 | ) | $ | (12,065 | ) | |
Other comprehensive (loss) income: | |||||||
Foreign currency translation adjustment | (30,566 | ) | (8,904 | ) | |||
Pension adjustments | 118 | 74 | |||||
Unrealized loss on marketable securities | (31 | ) | (67 | ) | |||
Total other comprehensive loss, net | (30,479 | ) | (8,897 | ) | |||
Comprehensive loss | $ | (54,408 | ) | $ | (20,962 | ) |
December 31, 2016 | September 30, 2016 | ||||||
(Unaudited) | |||||||
(In thousands, except per share amounts) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 961,607 | $ | 481,620 | |||
Marketable securities | 133,684 | 98,840 | |||||
Accounts receivable, less allowances for doubtful accounts of $11,492 and $11,038 | 384,639 | 380,004 | |||||
Prepaid expenses and other current assets | 93,640 | 78,126 | |||||
Total current assets | 1,573,570 | 1,038,590 | |||||
Marketable securities | 42,174 | 27,632 | |||||
Land, building and equipment, net | 178,220 | 185,169 | |||||
Goodwill | 3,503,442 | 3,508,879 | |||||
Intangible assets, net | 762,322 | 762,220 | |||||
Other assets | 135,402 | 138,980 | |||||
Total assets | $ | 6,195,130 | $ | 5,661,470 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 977,458 | $ | — | |||
Contingent and deferred acquisition payments | 67,363 | 9,468 | |||||
Accounts payable | 70,758 | 94,599 | |||||
Accrued expenses and other current liabilities | 183,442 | 237,659 | |||||
Deferred revenue | 399,299 | 349,173 | |||||
Total current liabilities | 1,698,320 | 690,899 | |||||
Long-term portion of debt | 1,961,230 | 2,433,152 | |||||
Deferred revenue, net of current portion | 403,155 | 386,960 | |||||
Deferred tax liabilities | 120,189 | 115,435 | |||||
Other liabilities | 86,532 | 103,694 | |||||
Total liabilities | 4,269,426 | 3,730,140 | |||||
Commitments and contingencies (Note 15) | |||||||
Stockholders’ equity: | |||||||
Common stock, $0.001 par value per share; 560,000 shares authorized; 295,187 and 291,384 shares issued and 291,436 and 287,633 shares outstanding, respectively | 295 | 291 | |||||
Additional paid-in capital | 2,541,770 | 2,492,992 | |||||
Treasury stock, at cost (3,751 shares) | (16,788 | ) | (16,788 | ) | |||
Accumulated other comprehensive loss | (146,613 | ) | (116,134 | ) | |||
Accumulated deficit | (452,960 | ) | (429,031 | ) | |||
Total stockholders’ equity | 1,925,704 | 1,931,330 | |||||
Total liabilities and stockholders’ equity | $ | 6,195,130 | $ | 5,661,470 |
Three Months Ended December 31, | |||||||
2016 | 2015 | ||||||
(Unaudited) (In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (23,929 | ) | $ | (12,065 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 58,006 | 58,275 | |||||
Stock-based compensation | 39,130 | 42,348 | |||||
Non-cash interest expense | 13,039 | 8,636 | |||||
Deferred tax provision (benefit) | 2,006 | (351 | ) | ||||
Loss on extinguishment of debt | — | 4,851 | |||||
Other | 1,856 | 393 | |||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||
Accounts receivable | (9,713 | ) | (3,894 | ) | |||
Prepaid expenses and other assets | (15,999 | ) | (20,097 | ) | |||
Accounts payable | (21,244 | ) | (5,940 | ) | |||
Accrued expenses and other liabilities | 5,841 | 305 | |||||
Deferred revenue | 75,907 | 68,680 | |||||
Net cash provided by operating activities | 124,900 | 141,141 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (11,399 | ) | (20,555 | ) | |||
Payments for business and technology acquisitions, net of cash acquired | (22,949 | ) | (674 | ) | |||
Purchases of marketable securities and other investments | (72,797 | ) | (17,070 | ) | |||
Proceeds from sales and maturities of marketable securities and other investments | 10,105 | 14,128 | |||||
Net cash used in investing activities | (97,040 | ) | (24,171 | ) | |||
Cash flows from financing activities: | |||||||
Payments of debt | — | (511,844 | ) | ||||
Proceeds from issuance of long-term debt, net of issuance costs | 495,000 | 664,605 | |||||
Payments for repurchase of common stock | — | (189,580 | ) | ||||
Net payments on other long-term liabilities | (87 | ) | (851 | ) | |||
Proceeds from issuance of common stock from employee stock plans | 45 | 36 | |||||
Cash used to net share settle employee equity awards | (40,360 | ) | (52,171 | ) | |||
Net cash provided by (used in) financing activities | 454,598 | (89,805 | ) | ||||
Effects of exchange rate changes on cash and cash equivalents | (2,471 | ) | 39 | ||||
Net increase in cash and cash equivalents | 479,987 | 27,204 | |||||
Cash and cash equivalents at beginning of period | 481,620 | 479,449 | |||||
Cash and cash equivalents at end of period | $ | 961,607 | $ | 506,653 |
1. | Organization and Presentation |
2. | Summary of Significant Accounting Policies |
3. | Business Acquisitions |
Touch-Commerce | |||
Purchase consideration: | |||
Cash | $ | 113,008 | |
Common stock(a) | 85,000 | ||
Deferred acquisition payment | 20,140 | ||
Total purchase consideration | $ | 218,148 | |
Allocation of the purchase consideration: | |||
Cash | $ | 137 | |
Accounts receivable(b) | 14,897 | ||
Goodwill | 117,924 | ||
Identifiable intangible assets(c) | 110,800 | ||
Other assets | 1,521 | ||
Total assets acquired | 245,279 | ||
Current liabilities | (4,198 | ) | |
Deferred tax liability | (19,515 | ) | |
Deferred revenue | (2,784 | ) | |
Other long term liabilities | (634 | ) | |
Total liabilities assumed | (27,131 | ) | |
Net assets acquired | $ | 218,148 |
(a) | 5,749,807 shares of our common stock valued at $14.78 per share were issued at closing. |
(b) | Accounts receivable have been recorded at their estimated fair values and the fair value reserve was not material. |
(c) | The following are the identifiable intangible assets acquired and their respective weighted average useful lives, as determined based on preliminary valuations (dollars in thousands): |
TouchCommerce | |||||
Amount | Weighted Average Life (Years) | ||||
Core and completed technology | $ | 26,000 | 6.0 | ||
Customer relationships | 81,600 | 10.0 | |||
Trade names | 3,200 | 5.0 | |||
Total | $ | 110,800 |
Three Months Ended December 31, | |||||||
2016 | 2015 | ||||||
Transition and integration costs | $ | 3,710 | $ | 996 | |||
Professional service fees | 5,017 | 1,403 | |||||
Acquisition-related adjustments | 299 | 81 | |||||
Total | $ | 9,026 | $ | 2,480 |
4. | Goodwill and Intangible Assets |
Goodwill | Intangible Assets | ||||||
Balance at September 30, 2016 | $ | 3,508,879 | $ | 762,220 | |||
Acquisitions | 15,783 | 45,133 | |||||
Purchase accounting adjustments | (431 | ) | — | ||||
Amortization | — | (43,401 | ) | ||||
Effect of foreign currency translation | (20,789 | ) | (1,630 | ) | |||
Balance at December 31, 2016 | $ | 3,503,442 | $ | 762,322 |
5. | Financial Instruments and Hedging Activities |
Derivatives Not Designated as Hedges: | Balance Sheet Classification | Fair Value | ||||||||
December 31, 2016 | September 30, 2016 | |||||||||
Foreign currency contracts | Prepaid expenses and other current assets | $ | 2,235 | $ | 335 | |||||
Net fair value of non-hedge derivative instruments | $ | 2,235 | $ | 335 |
Three Months Ended December 31, | ||||||||||
Derivatives Not Designated as Hedges | Location of Gain (Loss) Recognized in Income | 2016 | 2015 | |||||||
Foreign currency contracts | Other expense, net | $ | (11,615 | ) | $ | (3,373 | ) |
• | Level 1. Quoted prices for identical assets or liabilities in active markets which we can access. |
• | Level 2. Observable inputs other than those described as Level 1. |
• | Level 3. Unobservable inputs based on the best information available, including management’s estimates and assumptions. |
December 31, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Money market funds(a) | $ | 815,794 | $ | — | $ | — | $ | 815,794 | |||||||
US government agency securities(a) | 1,003 | — | — | 1,003 | |||||||||||
Time deposits(b) | — | 44,573 | — | 44,573 | |||||||||||
Commercial paper, $59,158 at cost(b) | — | 59,192 | — | 59,192 | |||||||||||
Corporate notes and bonds, $72,105 at cost(b) | — | 72,094 | — | 72,094 | |||||||||||
Foreign currency exchange contracts(b) | — | 2,235 | — | 2,235 | |||||||||||
Total assets at fair value | $ | 816,797 | $ | 178,094 | $ | — | $ | 994,891 | |||||||
Liabilities: | |||||||||||||||
Contingent acquisition payments(c) | — | — | (8,961 | ) | (8,961 | ) | |||||||||
Total liabilities at fair value | $ | — | $ | — | $ | (8,961 | ) | $ | (8,961 | ) |
September 30, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Money market funds(a) | $ | 331,419 | $ | — | $ | — | $ | 331,419 | |||||||
US government agency securities(a) | 1,002 | — | — | 1,002 | |||||||||||
Time deposits(b) | — | 33,794 | — | 33,794 | |||||||||||
Commercial paper, $38,108 at cost(b) | — | 38,142 | — | 38,142 | |||||||||||
Corporate notes and bonds, $54,484 at cost(b) | — | 54,536 | — | 54,536 | |||||||||||
Foreign currency exchange contracts(b) | — | 335 | — | 335 | |||||||||||
Total assets at fair value | $ | 332,421 | $ | 126,807 | $ | — | $ | 459,228 | |||||||
Liabilities: | |||||||||||||||
Contingent acquisition payments(c) | $ | — | $ | — | $ | (8,240 | ) | $ | (8,240 | ) | |||||
Total liabilities at fair value | $ | — | $ | — | $ | (8,240 | ) | $ | (8,240 | ) |
(a) | Money market funds and U.S. government agency securities, included in cash and cash equivalents in the accompanying balance sheets, are valued at quoted market prices in active markets. |
(b) | The fair values of our time deposits, commercial paper, corporate notes and bonds, and foreign currency exchange contracts are based on the most recent observable inputs for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable. Time deposits are generally for terms of one year or less. The commercial paper and corporate notes and bonds mature within three years and have a weighted average maturity of 0.76 years as of December 31, 2016. |
(c) | The fair value of our contingent consideration arrangements are determined based on our evaluation as to the probability and amount of any earn-out that will be achieved based on expected future performance by the acquired entity. |
Three Months Ended December 31, | |||||||
2016 | 2015 | ||||||
Balance at beginning of period | $ | 8,240 | $ | 15,961 | |||
Earn-out liabilities established at time of acquisition | 1,653 | — | |||||
Payments and foreign currency translation | (1,498 | ) | 462 | ||||
Adjustments to fair value included in acquisition-related costs, net | 566 | 478 | |||||
Balance at end of period | $ | 8,961 | $ | 16,901 |
7. | Accrued Expenses and Other Current Liabilities |
December 31, 2016 | September 30, 2016 | ||||||
Compensation | $ | 86,894 | $ | 154,028 | |||
Accrued interest payable | 34,322 | 20,409 | |||||
Cost of revenue related liabilities | 18,723 | 19,351 | |||||
Consulting and professional fees | 18,251 | 18,001 | |||||
Facilities related liabilities | 7,934 | 7,382 | |||||
Sales and marketing incentives | 3,949 | 6,508 | |||||
Sales and other taxes payable | 2,488 | 2,708 | |||||
Other | 10,881 | 9,272 | |||||
Total | $ | 183,442 | $ | 237,659 |
8. | Deferred Revenue |
December 31, 2016 | September 30, 2016 | ||||||
Current liabilities: | |||||||
Deferred maintenance revenue | $ | 167,704 | $ | 165,902 | |||
Unearned revenue | 231,595 | 183,271 | |||||
Total current deferred revenue | $ | 399,299 | $ | 349,173 | |||
Long-term liabilities: | |||||||
Deferred maintenance revenue | $ | 56,210 | $ | 59,955 | |||
Unearned revenue | 346,945 | 327,005 | |||||
Total long-term deferred revenue | $ | 403,155 | $ | 386,960 |
9. | Restructuring and Other Charges, net |
Personnel | Facilities | Total | |||||||||
Balance at September 30, 2016 | $ | 2,661 | $ | 11,132 | $ | 13,793 | |||||
Restructuring charges, net | 3,651 | 1,899 | 5,550 | ||||||||
Non-cash adjustment | — | 89 | 89 | ||||||||
Cash payments | (4,749 | ) | (1,894 | ) | (6,643 | ) | |||||
Balance at December 31, 2016 | $ | 1,563 | $ | 11,226 | $ | 12,789 |
Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||||||||||||||||||
Personnel | Facilities | Total Restructuring | Other Charges | Total | Personnel | Facilities | Total Restructuring | Other Charges | Total | ||||||||||||||||||||||||||||||
Healthcare | $ | 1,984 | $ | 277 | $ | 2,261 | $ | — | $ | 2,261 | $ | 701 | $ | — | $ | 701 | $ | — | $ | 701 | |||||||||||||||||||
Mobile | 213 | — | 213 | — | 213 | 2,182 | 602 | 2,784 | — | 2,784 | |||||||||||||||||||||||||||||
Enterprise | 424 | 607 | 1,031 | — | 1,031 | 1,084 | 20 | 1,104 | — | 1,104 | |||||||||||||||||||||||||||||
Imaging | 361 | 351 | 712 | — | 712 | 213 | — | 213 | — | 213 | |||||||||||||||||||||||||||||
Corporate | 669 | 664 | 1,333 | 1,153 | 2,486 | 378 | 2,708 | 3,086 | — | 3,086 | |||||||||||||||||||||||||||||
Total | $ | 3,651 | $ | 1,899 | $ | 5,550 | $ | 1,153 | $ | 6,703 | $ | 4,558 | $ | 3,330 | $ | 7,888 | $ | — | $ | 7,888 | |||||||||||||||||||
10. | Debt and Credit Facilities |
December 31, 2016 | September 30, 2016 | ||||||
5.375% Senior Notes due 2020, net of unamortized premium of $2.8 million and $3.0 million, respectively, and deferred issuance costs of $6.9 million and $7.3 million, respectively. Effective interest rate 5.28%. | $ | 1,045,968 | $ | 1,046,851 | |||
5.625% Senior Notes due 2026, net of deferred issuance costs of $6.5 million. Effective interest rate 5.625%. | 493,471 | — | |||||
6.000% Senior Notes due 2024, net of deferred issuance costs of $2.3 million and $2.4 million, respectively. Effective interest rate 6.00%. | 297,678 | 297,601 | |||||
1.00% Convertible Debentures due 2035, net of unamortized discount of $158.0 million and $163.5 million, respectively, and deferred issuance costs of $7.9 million and $8.2 million, respectively. Effective interest rate 5.62%. | 510,589 | 504,712 | |||||
2.75% Convertible Debentures due 2031, net of unamortized discount of $14.9 million and $19.2 million, respectively, and deferred issuance costs of $0.9 million and $1.1 million, respectively. Effective interest rate 7.43%. | 379,762 | 375,208 | |||||
1.50% Convertible Debentures due 2035, net of unamortized discount of $49.5 million and $51.7 million, respectively, and deferred issuance costs of $1.8 million and $1.9 million, respectively. Effective interest rate 5.39%. | 212,643 | 210,286 | |||||
Deferred issuance costs related to our Revolving Credit Facility | (1,423 | ) | (1,506 | ) | |||
Total long-term debt | $ | 2,938,688 | $ | 2,433,152 | |||
Less: current portion | 977,458 | — | |||||
Non-current portion of long-term debt | $ | 1,961,230 | $ | 2,433,152 |
Fiscal Year | Convertible Debentures(1) | Senior Notes | Total | |||||||||
2017 | $ | — | $ | 600,000 | $ | 600,000 | ||||||
2018 | 395,534 | — | 395,534 | |||||||||
2019 | — | — | — | |||||||||
2020 | — | 450,000 | 450,000 | |||||||||
2021 | — | — | — | |||||||||
Thereafter | 940,383 | 800,000 | 1,740,383 | |||||||||
Total before unamortized discount | 1,335,917 | 1,850,000 | 3,185,917 | |||||||||
Less: unamortized discount and issuance costs | (232,923 | ) | (14,306 | ) | (247,229 | ) | ||||||
Total long-term debt | $ | 1,102,994 | $ | 1,835,694 | $ | 2,938,688 |
(1) | Holders of the 1.0% 2035 Debentures have the right to require us to redeem the debentures on December 15, 2022, 2027 and 2032. Holders of the 2031 Debentures have the right to require us to redeem the debentures on November 1, 2017, 2021, and 2026. Holders of the 1.5% 2035 Debentures have the right to require us to redeem the debentures on November 1, 2021, 2026, and 2031. |
11. | Stockholders' Equity |
12. | Net Loss Per Share |
13. | Stock-Based Compensation |
Three Months Ended December 31, | |||||||
2016 | 2015 | ||||||
Cost of professional services and hosting | $ | 8,410 | $ | 7,757 | |||
Cost of product and licensing | 92 | 122 | |||||
Cost of maintenance and support | 977 | 1,068 | |||||
Research and development | 8,490 | 9,933 | |||||
Selling and marketing | 11,969 | 12,837 | |||||
General and administrative | 9,192 | 10,631 | |||||
Total | $ | 39,130 | $ | 42,348 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value(a) | |||||||||
Outstanding at September 30, 2016 | 1,965,826 | $ | 15.01 | |||||||||
Exercised | (915,779 | ) | $ | 13.55 | ||||||||
Outstanding at December 31, 2016 | 1,050,047 | $ | 16.29 | 1.0 year | $ | 0.2 | million | |||||
Exercisable at December 31, 2016 | 1,050,038 | $ | 16.29 | 1.0 year | $ | 0.2 | million | |||||
Exercisable at December 31, 2015 | 2,113,030 | $ | 14.81 | 1.4 years | $ | 10.7 | million |
(a) | The aggregate intrinsic value in this table was calculated based on the positive difference, if any, between the closing market price of our common stock on December 31, 2016 ($14.90) and the exercise price of the underlying options. |
Number of Shares Underlying Restricted Units — Contingent Awards | Number of Shares Underlying Restricted Units — Time-Based Awards | ||||
Outstanding at September 30, 2016 | 4,224,488 | 5,884,023 | |||
Granted | 2,359,758 | 4,697,434 | |||
Earned/released | (1,748,874 | ) | (3,728,611 | ) | |
Forfeited | (376,061 | ) | (226,008 | ) | |
Outstanding at December 31, 2016 | 4,459,311 | 6,626,838 | |||
Weighted average remaining recognition period of outstanding restricted units | 1.8 years | 1.8 years | |||
Unearned stock-based compensation expense of outstanding restricted units | $63.5 million | $73.4 million | |||
Aggregate intrinsic value of outstanding restricted units(a) | $66.4 million | $98.8 million |
(a) | The aggregate intrinsic value in this table was calculated based on the positive difference between the closing market price of our common stock on December 31, 2016 ($14.90) and the purchase price of the underlying restricted units. |
Three Months Ended December 31, | |||||||
2016 | 2015 | ||||||
Weighted-average grant-date fair value per share | $ | 15.90 | $ | 20.40 | |||
Total intrinsic value of shares vested (in millions) | $ | 88.3 | $ | 115.6 |
Number of Shares Underlying Restricted Stock | Weighted Average Grant Date Fair Value | |||||
Outstanding at September 30, 2016 | — | $ | — | |||
Granted | 250,000 | $ | 15.55 | |||
Outstanding at December 31, 2016 | 250,000 | $ | 15.55 | |||
Weighted average remaining recognition period of outstanding restricted stock awards | 0.8 years | |||||
Unearned stock-based compensation expense of outstanding restricted stock awards | $3.3 million | |||||
Aggregate intrinsic value of outstanding restricted stock awards(a) | $3.7 million |
(a) | The aggregate intrinsic value in this table was calculated based on the positive difference between the closing market price of our common stock on December 31, 2016 ($14.90) and the purchase price of the underlying restricted stock awards. |
14. | Income Taxes |
Three Months Ended December 31, | |||||||
2016 | 2015 | ||||||
Domestic | $ | (47,583 | ) | $ | (29,002 | ) | |
Foreign | 34,007 | 24,704 | |||||
Loss before income taxes | $ | (13,576 | ) | $ | (4,298 | ) |
Three Months Ended December 31, | |||||||
2016 | 2015 | ||||||
Domestic | $ | 4,159 | $ | 4,537 | |||
Foreign | 6,194 | 3,230 | |||||
Provision for income taxes | $ | 10,353 | $ | 7,767 | |||
Effective tax rate | (76.3 | )% | (180.7 | )% |
15. | Commitments and Contingencies |
16. | Segment and Geographic Information |
Three Months Ended | |||||||
December 31, | |||||||
2016 | 2015 | ||||||
Segment revenues(a): | |||||||
Healthcare | $ | 239,208 | $ | 248,084 | |||
Mobile | 91,784 | 96,403 | |||||
Enterprise | 112,938 | 88,776 | |||||
Imaging | 52,089 | 61,607 | |||||
Total segment revenues | 496,019 | 494,870 | |||||
Less: acquisition-related revenues adjustments | (8,361 | ) | (8,755 | ) | |||
Total consolidated revenues | 487,658 | 486,115 | |||||
Segment profit: | |||||||
Healthcare | 78,567 | 81,229 | |||||
Mobile | 33,471 | 33,764 | |||||
Enterprise | 31,958 | 26,211 | |||||
Imaging | 17,616 | 26,985 | |||||
Total segment profit | 161,612 | 168,189 | |||||
Corporate expenses and other, net | (30,959 | ) | (30,720 | ) | |||
Acquisition-related revenues and cost of revenues adjustments | (8,361 | ) | (8,589 | ) | |||
Stock-based compensation | (39,130 | ) | (42,348 | ) | |||
Amortization of intangible assets | (43,401 | ) | (42,664 | ) | |||
Acquisition-related costs, net | (9,026 | ) | (2,480 | ) | |||
Restructuring and other charges, net | (6,703 | ) | (7,888 | ) | |||
Costs associated with IP collaboration agreements | — | (2,000 | ) | ||||
Other expense, net | (37,608 | ) | (35,798 | ) | |||
Loss before income taxes | $ | (13,576 | ) | $ | (4,298 | ) |
(a) | Segment revenues differ from reported revenues due to certain revenue adjustments related to acquisitions that would otherwise have been recognized but for the purchase accounting treatment of the business combinations. These revenues are included to allow for more complete comparisons to the financial results of historical operations and in evaluating management performance. |
Three Months Ended | |||||||
December 31, | |||||||
2016 | 2015 | ||||||
United States | $ | 349,170 | $ | 355,814 | |||
International | 138,488 | 130,301 | |||||
Total revenues | $ | 487,658 | $ | 486,115 |
• | our future bookings, revenues, cost of revenues, research and development expenses, selling, general and administrative expenses, amortization of intangible assets and gross margin; |
• | our strategy relating to our segments; |
• | our transformation program to reduce costs and optimize processes; |
• | market trends; |
• | technological advancements; |
• | the potential of future product releases; |
• | our product development plans and the timing, amount and impact of investments in research and development; |
• | future acquisitions, and anticipated benefits from acquisitions; |
• | international operations and localized versions of our products; and |
• | the conduct, timing and outcome of legal proceedings and litigation matters. |
• | Healthcare. Trends in our healthcare business include growing customer preference for hosted solutions and subscription-based license models and increased use of mobile devices to access healthcare systems and create clinical documentation within electronic health record systems. In addition, we are experiencing growing demand for integrated solutions, combining our Dragon Medical and hosted transcription offerings. The volume processed in our hosted transcription services has continued to erode as customers adopt electronic medical record systems and our Dragon Medical solutions. This decline has been partially offset by new customer wins and the increased sale of integrated solutions of our transcription and Dragon Medical offerings. We have also experienced declines in our Dragon Medical perpetual license revenue as customers shift toward Dragon Medical cloud offerings. These cloud offerings are enabling the expansion of our Dragon Medical solutions to include new clinical language understanding and artificial intelligence innovations, providing real time queries to the physician at the point of care. We believe an important trend in the healthcare market is the desire to improve efficiency in the coding and revenue cycle management process. Our solutions reduce costs by increasing automation of this important workflow and also enable hospitals to improve documentation used to support billings. The industry’s shift in international classification of diseases ("ICD") from ICD-9 to ICD-10, together with evolving reimbursement reform that is increasingly focused on clinical outcomes, has increased the complexity of the clinical documentation and coding processes. This shift is reinforcing our customers’ desire for improved efficiency. We are investing to expand our product set to address the various opportunities, including deeper integration with our clinical documentation solutions; investing in our cloud-based products and operations; entering new and adjacent markets such as ambulatory care; and expanding our international capabilities. |
• | Mobile. Trends in our mobile business include automotive original equipment manufacturers ("OEM") differentiating their offerings by using voice and content to provide an enhanced experience for drivers; consumer electronics companies and cable operators competing to develop virtual assistant technologies for the home; geographic expansion of our mobile operator services; and the adoption of our technology on a broadening scope of devices, such as televisions, set-top boxes, and third-party applications. The more powerful capabilities within automobiles and mobile devices require us to supply a broader portfolio of specialized virtual assistants and connected services providing voice recognition, content integration, text-to-speech, and natural language understanding capabilities. We continued to see increased demand for our enhanced offerings that combined speech and natural language understanding technology with artificial intelligence particularly from large automotive OEMs for our embedded and connected solutions. We are continuing to see a decline in our devices revenue resulting from the consolidation of the device market to a small number of customers as well as increased competition in voice recognition and natural language solutions and services sold to device OEMs. We continue to see demand involving the sale and delivery of both software and non-software related services, as well as products to help customers define, design and implement increasingly robust and complex custom solutions such as virtual assistants. We continue to see an increasing proportion of revenue from on-demand and transactional arrangements as opposed to traditional perpetual licensing of our Mobile products and solutions. Although this has a negative impact on near-term revenue, we believe this model will build more predictable revenues over time. We are investing in the expansion of the cloud capabilities and content of our automotive solutions; machine learning technologies, expansion across the Internet of Things in our devices solutions; and go-to market strategies with mobile operators. |
• | Enterprise. Trends in our enterprise business include increasing interest in the use of mobile applications and web sites to access customer care systems and records, voice-based authentication of users, increasing interest in coordinating actions and data across customer care channels, and the ability of a broader set of hardware providers and systems integrators to serve the market. In addition, for large enterprise businesses around the world, customer service interactions are accelerating toward more pervasive digital engagement across web, mobile and social platforms. In order to acquire and retain customers, enterprises need to be able to provide a customer service experience when and how the customer desires. This is creating a growing market opportunity for our omni-channel enterprise solutions, and with the acquisition of TouchCommerce, Inc., which closed during the fourth quarter of fiscal year 2016, we will be able to provide an end-to-end engagement platform that merges intelligent self-service with assisted service to increase customer satisfaction, strengthen customer loyalty and improve business results. In fiscal year 2016, revenues and bookings from on-demand solutions continued to increase, as a growing proportion of customers choose our cloud-based solutions for call center, web and mobile customer care solutions. We expect these trends to continue in fiscal year 2017. We are investing to extend our technology capabilities with intelligent self-service and artificial intelligence for customer service; extend the market for our on-demand omni-channel enterprise solutions into international markets; expand our sales and solutions for voice biometrics; and expand our on-premise product and services portfolio. |
• | Imaging. The imaging market is evolving to include more networked solutions to multi-function printing ("MFP") devices, as well as more mobile access to those networked solutions, and away from packaged software. We are investing to merge the scan and print technology platforms to improve mobile access to our solutions and technologies; expand our distribution channels and embedding relationships; and expand our language coverage for optical character recognition ("OCR") in order to drive a more comprehensive and compelling offering to our partners. |
• | Total revenues increased by $1.5 million to $487.7 million; |
• | Net loss increased by $11.9 million to a loss of $23.9 million; |
• | Gross margins decreased by 1.3 percentage points to 56.4%; |
• | Operating margins decreased by 1.6 percentage points to 4.9%; and |
• | Cash provided by operating activities decreased $16.2 million to $124.9 million. |
• | Total deferred revenue increased 9.5% from $732.7 million to $802.5 million driven primarily by our hosting solutions, most notably for our automotive connected services in our Mobile segment. |
• | Net new bookings increased 23.2% from one year ago to $380.3 million. The net new bookings growth benefited from strong bookings performance in our Healthcare and Mobile segments. |
• | Recurring revenue represented 72.4% and 67.1% of total revenue for three months ended December 31, 2016 and December 31, 2015, respectively. Recurring revenue represents the sum of recurring product and licensing, hosting, and maintenance and support revenues as well as the portion of professional services revenue delivered under ongoing contracts. Recurring product and licensing revenue comprises term-based and ratable licenses as well as revenues from royalty arrangements; |
• | Annualized line run-rate in our on-demand healthcare solutions decreased 10% from one year ago to approximately 4.7 billion lines per year. The annualized line run-rate is determined using billed equivalent line counts in a given quarter, multiplied by four; and |
• | Estimated three-year value of total on-demand contracts at December 31, 2016 increased 11% from one year ago to approximately $2.5 billion. We determine this value as of the end of the period reported, by using our estimate of three years of anticipated future revenue streams under signed on-demand contracts then in place, whether or not they are guaranteed through a minimum commitment clause. Our estimate is based on assumptions used in evaluating the contracts and determining sales compensation, adjusted for changes in estimated launch dates, actual volumes achieved and other factors deemed relevant. For contracts with an expiration date beyond three years, we include only the value expected within three years. For other contracts, we assume renewal consistent with historic renewal rates unless there is a known cancellation. Contracts are generally priced by volume of usage and typically have no or low minimum commitments. Actual revenue could vary from our estimates due to factors such as cancellations, non-renewals or volume fluctuations. |
Three Months Ended | Dollar Change | Percent Change | |||||||||||||
December 31, | |||||||||||||||
2016 | 2015 | ||||||||||||||
Professional services and hosting | $ | 253.4 | $ | 227.1 | $ | 26.3 | 11.6 | % | |||||||
Product and licensing | 151.8 | 179.1 | (27.3 | ) | (15.2 | )% | |||||||||
Maintenance and support | 82.5 | 79.9 | 2.6 | 3.2 | % | ||||||||||
Total Revenues | $ | 487.7 | $ | 486.1 | $ | 1.5 | 0.3 | % | |||||||
United States | $ | 349.2 | $ | 355.8 | $ | (6.6 | ) | (1.9 | )% | ||||||
International | 138.5 | 130.3 | 8.2 | 6.3 | % | ||||||||||
Total Revenues | $ | 487.7 | $ | 486.1 | $ | 1.5 | 0.3 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Professional services revenue | $ | 60.1 | $ | 49.7 | $ | 10.5 | 21.1 | % | ||||||
Hosting revenue | 193.3 | 177.4 | 15.9 | 8.9 | % | |||||||||
Professional services and hosting revenue | $ | 253.4 | $ | 227.1 | $ | 26.3 | 11.6 | % | ||||||
As a percentage of total revenue | 52.0 | % | 46.7 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Product and licensing revenue | $ | 151.8 | $ | 179.1 | $ | (27.3 | ) | (15.2 | )% | |||||
As a percentage of total revenue | 31.1 | % | 36.8 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Maintenance and support revenue | $ | 82.5 | $ | 79.9 | $ | 2.6 | 3.2 | % | ||||||
As a percentage of total revenue | 16.9 | % | 16.4 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Cost of professional services and hosting revenue | $ | 164.9 | $ | 153.3 | $ | 11.6 | 7.6 | % | ||||||
As a percentage of professional services and hosting revenue | 65.1 | % | 67.5 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Cost of product and licensing revenue | $ | 18.4 | $ | 23.4 | $ | (5.0 | ) | (21.5 | )% | |||||
As a percentage of product and licensing revenue | 12.1 | % | 13.1 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Cost of maintenance and support revenue | $ | 13.6 | $ | 13.3 | $ | 0.3 | 2.3 | % | ||||||
As a percentage of maintenance and support revenue | 16.5 | % | 16.6 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Research and development expense | $ | 66.3 | $ | 70.5 | $ | (4.2 | ) | (6.0 | )% | |||||
As a percentage of total revenue | 13.6 | % | 14.5 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Sales and marketing expense | $ | 101.5 | $ | 100.6 | $ | 0.9 | 0.9 | % | ||||||
As a percentage of total revenue | 20.8 | % | 20.7 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
General and administrative expense | $ | 39.8 | $ | 40.5 | $ | (0.7 | ) | (1.8 | )% | |||||
As a percentage of total revenue | 8.2 | % | 8.3 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Cost of revenue | $ | 15.5 | $ | 15.6 | $ | (0.1 | ) | (0.6 | )% | |||||
Operating expenses | 27.9 | 27.0 | 0.8 | 3.1 | % | |||||||||
Total amortization expense | $ | 43.4 | $ | 42.7 | $ | 0.7 | 1.7 | % | ||||||
As a percentage of total revenue | 8.9 | % | 8.8 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Transition and integration costs | $ | 3.7 | $ | 1.0 | $ | 2.7 | 272.5 | % | ||||||
Professional service fees | 5.0 | 1.4 | 3.6 | 257.6 | % | |||||||||
Acquisition-related adjustments | 0.3 | 0.1 | 0.2 | 269.1 | % | |||||||||
Total acquisition-related costs, net | $ | 9.0 | $ | 2.5 | $ | 6.5 | 264.0 | % | ||||||
As a percentage of total revenue | 1.9 | % | 0.5 | % |
Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||||||||||||||||||
Personnel | Facilities | Total Restructuring | Other Charges | Total | Personnel | Facilities | Total Restructuring | Other Charges | Total | ||||||||||||||||||||||||||||||
Healthcare | $ | 1,984 | $ | 277 | $ | 2,261 | $ | — | $ | 2,261 | $ | 701 | $ | — | $ | 701 | $ | — | $ | 701 | |||||||||||||||||||
Mobile | 213 | — | 213 | — | 213 | 2,182 | 602 | 2,784 | — | 2,784 | |||||||||||||||||||||||||||||
Enterprise | 424 | 607 | 1,031 | — | 1,031 | 1,084 | 20 | 1,104 | — | 1,104 | |||||||||||||||||||||||||||||
Imaging | 361 | 351 | 712 | — | 712 | 213 | — | 213 | — | 213 | |||||||||||||||||||||||||||||
Corporate | 669 | 664 | 1,333 | 1,153 | 2,486 | 378 | 2,708 | 3,086 | — | 3,086 | |||||||||||||||||||||||||||||
Total | $ | 3,651 | $ | 1,899 | $ | 5,550 | $ | 1,153 | $ | 6,703 | $ | 4,558 | $ | 3,330 | $ | 7,888 | $ | — | $ | 7,888 | |||||||||||||||||||
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Interest income | $ | 1.0 | $ | 0.9 | $ | 0.1 | 15.9 | % | ||||||
Interest expense | (38.0 | ) | (29.9 | ) | (8.1 | ) | 27.2 | % | ||||||
Other expense, net | (0.6 | ) | (6.8 | ) | 6.2 | (91.0 | )% | |||||||
Total other expense, net | $ | (37.6 | ) | $ | (35.8 | ) | 5.1 | % | ||||||
As a percentage of total revenue | 7.7 | % | 7.4 | % |
Three Months Ended | Dollar Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Provision for income taxes | $ | 10.4 | $ | 7.8 | $ | 2.6 | 33.3 | % | ||||||
Effective income tax rate | (76.3 | )% | (180.7 | )% |
Three Months Ended | Change | Percent Change | ||||||||||||
December 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Segment Revenues(a): | ||||||||||||||
Healthcare | $ | 239.2 | $ | 248.1 | $ | (8.9 | ) | (3.6 | )% | |||||
Mobile | 91.8 | 96.4 | (4.6 | ) | (4.8 | )% | ||||||||
Enterprise | 112.9 | 88.8 | 24.2 | 27.2 | % | |||||||||
Imaging | 52.1 | 61.6 | (9.5 | ) | (15.4 | )% | ||||||||
Total segment revenues | $ | 496.0 | $ | 494.9 | $ | 1.1 | 0.2 | % | ||||||
Less: acquisition related revenues adjustments | (8.4 | ) | (8.8 | ) | 0.4 | (4.5 | )% | |||||||
Total revenues | $ | 487.7 | $ | 486.1 | $ | 1.5 | 0.3 | % | ||||||
Segment Profit: | ||||||||||||||
Healthcare | $ | 78.6 | $ | 81.2 | $ | (2.7 | ) | (3.3 | )% | |||||
Mobile | 33.5 | 33.8 | (0.3 | ) | (0.9 | )% | ||||||||
Enterprise | 32.0 | 26.2 | 5.7 | 21.9 | % | |||||||||
Imaging | 17.6 | 27.0 | (9.4 | ) | (34.7 | )% | ||||||||
Total segment profit | $ | 161.6 | $ | 168.2 | $ | (6.6 | ) | (3.9 | )% | |||||
Segment Profit Margin | ||||||||||||||
Healthcare | 32.8 | % | 32.7 | % | 0.1 | |||||||||
Mobile | 36.5 | % | 35.0 | % | 1.4 | |||||||||
Enterprise | 28.3 | % | 29.5 | % | (1.2 | ) | ||||||||
Imaging | 33.8 | % | 43.8 | % | (10.0 | ) | ||||||||
Total segment profit margin | 32.6 | % | 34.0 | % | (1.4 | ) |
(a) | Segment revenues differ from reported revenues due to certain revenue adjustments related to acquisitions that would otherwise have been recognized but for the purchase accounting treatment of the business combinations. These revenues are included to allow for more complete comparisons to the financial results of historical operations and in evaluating management performance. |
• | Healthcare segment revenues decreased $8.9 million for the three months ended December 31, 2016, as compared to the three months ended December 31, 2015. Product and licensing revenues decreased $14.5 million driven by lower revenues from our Dragon Medical perpetual license sales as we transition from perpetual to cloud offerings. Professional services and hosting revenues increased $4.7 million primarily driven by an increase of $8.7 million in professional services from a recent acquisition, partially offset by a decrease of $4.0 million in hosting revenues as we continue to experience some erosion of revenue in our transcription services which is partially offset by the growth in our Dragon Medical cloud offerings. Maintenance and support revenues increased $1.0 million driven by strong renewals. |
• | Mobile segment revenues decreased $4.6 million for the three months ended December 31, 2016, as compared to the three months ended December 31, 2015. Product and licensing revenues decreased $9.6 million and maintenance and support revenue decreased $0.9 million, owing to a decline in devices revenue from deterioration in mature markets, partially offset by the growth in recurring product and licensing revenue in our automotive business. Professional services and hosting revenues increased $5.9 million driven primarily by a continued trend toward cloud-based services in our automotive solutions. |
• | Enterprise segment revenues increased $24.2 million for the three months ended December 31, 2016, as compared to the three months ended December 31, 2015. Professional services and hosting revenues increased $15.7 million driven by strong revenue from our omni-channel offerings, including revenue from a recent acquisition. Product and licensing revenues increased $6.7 million primarily related to revenue from a recent acquisition. |
• | Imaging segment revenues decreased $9.5 million for the three months ended December 31, 2016, as compared to the three months ended December 31, 2015, primarily driven by lower sales of our MFP products. |
• | Healthcare segment profit for the three months ended December 31, 2016 decreased 3.3% from the same period last year, primarily driven by lower gross profit, offset by lower operating expenses. Segment profit margin increased 0.1 percentage points, from 32.7% for the same period last year to 32.8% during the current period. The increase in segment profit margin was primarily driven by lower operating expenses with improvements of 0.7 percentage point, partially offset by lower gross margins of 0.6 percentage point due to a shift in mix towards a higher percentage of professional services revenue. |
• | Mobile segment profit for the three months ended December 31, 2016 decreased 0.9% from the same period last year, primarily driven by lower gross profit, partially offset by lower operating expenses. Segment profit margin increased 1.4 percentage points, from 35.0% for the same period last year to 36.5% during the current period. The increase in segment profit margin was primarily driven by our cost savings and process optimization initiatives with improvements of 0.7 percentage point due to lower operating expenses and a 0.7 percentage point improvement in gross margin driven by margin expansion in our cloud-based services. |
• | Enterprise segment profit for the three months ended December 31, 2016 increased 21.9% from the same period last year, driven by higher gross profit due to increased revenue. Segment profit margin decreased 1.2 percentage points, from 29.5% for the same period last year to 28.3% in the current period. The decrease in segment profit margin was primarily driven by lower gross margin and higher operating expenses from a recent acquisition. |
• | Imaging segment profit for the three months ended December 31, 2016 decreased 34.7% from the same period last year, primarily driven by lower revenue. Segment profit margin decreased 10.0 percentage points, from 43.8% for the same period last year to 33.8% during the current period. The decrease in segment profit margin was primarily driven by lower revenues and higher research and development expenses. |
• | A decrease in cash flows of $12.0 million resulting from higher net loss, exclusive of non-cash adjustment items; |
• | A decrease of $11.5 million in cash flows generated by changes in working capital excluding deferred revenue; and |
• | Partially offset by an increase in cash flows of $7.2 million from deferred revenue. Deferred revenue contributed cash inflow of $75.9 million for the three months ended December 31, 2016, as compared to $68.7 million for the three months ended December 31, 2015. The deferred revenue growth in the three months ended December 31, 2016 was driven primarily by our hosting solutions, most notably for our automotive connected services in our Mobile segment. |
• | An increase in cash outflows of $55.7 million for purchases of marketable securities and other investments; |
• | An increase in cash outflows of $22.3 million for business and technology acquisitions; and |
• | Partially offset by a decrease in cash outflows of $9.2 million from the purchase of capitalized expenditures. |
• | An increase in cash inflows of $495.0 million, net of issuance costs, from new debt issuance. In December 2016, we issued $500.0 million aggregate principal amount of 5.625% senior notes due on December 15, 2026 in a private placement, as compared to cash inflows of $153.0 million from the convertible debt issuance net of the repayment of long-term debt during the three months ended December 31, 2015; |
• | A decrease in cash outflows of $189.6 million related to our share repurchase program. During the three months ended December 31, 2016, there was no repurchased shares of our common stock, as compared to 8.9 million shares of our common stock repurchased for total cash outflows of $189.6 million during the same period in the prior year; and |
• | A decrease in cash outflows of $11.8 million as a result of lower cash payments required to net share settle employee equity awards, due to a decrease in vesting value as a result of lower stock prices during the three months ended December 31, 2016 as compared to the same period in the prior year. |
Payments Due by Fiscal Year Ended September 30, | ||||||||||||||||||||
Contractual Obligations | Total | 2017 | 2018 and 2019 | 2020 and 2021 | Thereafter | |||||||||||||||
Convertible debentures(1) | 1,335.9 | — | 395.5 | — | 940.4 | |||||||||||||||
Senior notes | 1,850.0 | 600.0 | — | 450.0 | 800.0 | |||||||||||||||
Interest payable on long-term debt(2) | 592.0 | 65.8 | 167.5 | 137.8 | 220.9 | |||||||||||||||
Letters of credit(3) | 4.3 | 3.3 | 1.0 | — | — | |||||||||||||||
Lease obligations and other liabilities: | ||||||||||||||||||||
Operating leases | 181.2 | 20.1 | 40.5 | 30.2 | 90.4 | |||||||||||||||
Operating leases under restructuring(4) | 61.8 | 8.9 | 17.0 | 12.5 | 23.4 | |||||||||||||||
Purchase commitments for inventory, property and equipment(5) | 3.9 | 3.9 | — | — | — | |||||||||||||||
Total contractual cash obligations | $ | 4,029.1 | $ | 702.0 | $ | 621.5 | $ | 630.5 | $ | 2,075.1 |
(1) | Holders of the 2.75% 2031 Debentures have the right to require us to redeem the debentures on November 1, 2017, 2021, and 2026. Holders of the 1.5% 2035 Debentures have the right to require us to redeem the debentures on November 1, 2021, 2026, and 2031. Holders of the 1.0% 2035 Debentures have the right to require us to redeem the debentures on December 15, 2022, 2027 and 2032. |
(2) | Interest per annum is due and payable semi-annually under 1.0% 2035 Debentures at a rate of 1.0%, under 2031 Debentures at a rate of 2.75%, and under 1.5% 2035 Debentures at a rate of 1.5%. Interest per annum is due and payable semi-annually on the 5.375% Senior Notes at a rate of 5.375%, 5.625% Senior Notes at a rate of 5.625%, and 6.0% Senior Notes at a rate of 6.0%. |
(3) | Letters of Credit are in place primarily to secure future operating lease payments. |
(4) | Obligations include contractual lease commitments related to facilities that were part of restructuring plans. As of December 31, 2016, we have subleased certain of the facilities with total sublease income of $56.3 million through fiscal year 2025. |
(5) | These amounts include non-cancelable purchase commitments for property and equipment as well as inventory in the normal course of business to fulfill customers’ orders currently scheduled in our backlog. |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1A. | Risk Factors |
• | volume, timing and fulfillment of customer orders and receipt of royalty reports; |
• | the pace of the transition to an on-demand and transactional revenue model; |
• | slowing sales by our channel partners to their customers; |
• | customers delaying their purchasing decisions in anticipation of new versions of our products; |
• | contractual counterparties are unable to, or do not, meet their contractual commitments to us; |
• | introduction of new products by us or our competitors; |
• | seasonality in purchasing patterns of our customers; |
• | reduction in the prices of our products in response to competition, market conditions or contractual obligations; |
• | returns and allowance charges in excess of accrued amounts; |
• | timing of significant marketing and sales promotions; |
• | impairment charges against goodwill and intangible assets; |
• | delayed realization of synergies resulting from our acquisitions; |
• | accounts receivable that are not collectible and write-offs of excess or obsolete inventory; |
• | increased expenditures incurred pursuing new product or market opportunities; |
• | general economic trends as they affect retail and corporate sales; and |
• | higher than anticipated costs related to fixed-price contracts with our customers. |
• | the impact on local and global economies of the United Kingdom leaving the European Union; |
• | changes in foreign currency exchange rates or the lack of ability to hedge certain foreign currencies; |
• | changes in a specific country's or region's economic conditions; |
• | compliance with laws and regulations in many countries and any subsequent changes in such laws and regulations; |
• | geopolitical turmoil, including terrorism and war; |
• | trade protection measures and import or export licensing requirements imposed by the United States and/or by other countries; |
• | changes in applicable tax laws; |
• | difficulties in staffing and managing operations in multiple locations in many countries; |
• | longer payment cycles of foreign customers and timing of collections in foreign jurisdictions; and |
• | less effective protection of intellectual property than in the United States. |
• | cause our customers to lose confidence in our solutions; |
• | harm our reputation; |
• | expose us to litigation and liability; and |
• | increase our expenses from potential remediation costs. |
• | cause our customers to lose confidence in our solutions; |
• | harm our reputation; |
• | expose us to litigation and liability; and |
• | increase our expenses from potential remediation costs. |
• | difficulty in transitioning and integrating the operations and personnel of the acquired businesses; |
• | potential disruption of our ongoing business and distraction of management; |
• | difficulty in incorporating acquired products and technologies into our products and technologies; |
• | potential difficulties in completing projects associated with in-process research and development; |
• | unanticipated expenses and delays in completing acquired development projects and technology integration and upgrades; |
• | management of geographically remote business units both in the United States and internationally; |
• | impairment of relationships with partners and customers; |
• | assumption of unknown material liabilities of acquired companies; |
• | accurate projection of revenue and bookings plans of the acquired entity in the due diligence process; |
• | customers delaying purchases of our products pending resolution of product integration between our existing and our newly acquired products; |
• | entering markets or types of businesses in which we have limited experience; and |
• | potential loss of key employees of the acquired business. |
• | costs incurred to combine the operations of businesses we acquire, such as transitional employee expenses and employee retention, redeployment or relocation expenses; |
• | impairment of goodwill or intangible assets; |
• | amortization of intangible assets acquired; |
• | a reduction in the useful lives of intangible assets acquired; |
• | identification of or changes to assumed contingent liabilities, both income tax and non-income tax related, after our final determination of the amounts for these contingencies or the conclusion of the measurement period (generally up to one year from the acquisition date), whichever comes first; |
• | charges to our operating results to eliminate certain duplicative pre-merger activities, to restructure our operations or to reduce our cost structure; |
• | charges to our operating results resulting from expenses incurred to effect the acquisition; and |
• | charges to our operating results due to the expensing of certain stock awards assumed in an acquisition. |
• | projected levels of taxable income; |
• | pre-tax income being lower than anticipated in countries with lower statutory rates or higher than anticipated in countries with higher statutory rates; |
• | increases or decreases to valuation allowances recorded against deferred tax assets; |
• | tax audits conducted and settled by various tax authorities; |
• | adjustments to income taxes upon finalization of income tax returns; |
• | the ability to claim foreign tax credits; |
• | the repatriation of non-U.S. earnings for which we have not previously provided for income taxes; and |
• | changes in tax laws and their interpretations in countries in which we are subject to taxation. |
• | significant underperformance relative to historical or projected future operating results; |
• | significant changes in the manner of or use of the acquired assets or the strategy for our overall business; |
• | significant negative industry or economic trends; |
• | significant decline in our stock price for a sustained period; |
• | changes in our organization or management reporting structure that could result in additional reporting units, which may require alternative methods of estimating fair values or greater disaggregation or aggregation in our analysis by reporting unit; and |
• | a decline in our market capitalization below net book value. |
• | incur additional debt or issue guarantees; |
• | create liens; |
• | make certain investments; |
• | enter into transactions with our affiliates; |
• | sell certain assets; |
• | repurchase capital stock or make other restricted payments; |
• | declare or pay dividends or make other distributions to stockholders; and |
• | merge or consolidate with any entity. |
• | require us to use a large portion of our cash flow to pay principal and interest on debt, including the convertible debentures and the credit facility, which will reduce the availability of our cash flow to fund working capital, capital expenditures, acquisitions, research and development, exploiting business opportunities, and other business activities; |
• | place us at a competitive disadvantage compared to our competitors that have less debt; and |
• | limit, along with the financial and other restrictive covenants related to our debt, our ability to borrow additional funds, dispose of assets or pay cash dividends. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Nuance Communications, Inc. | |||
By: | /s/ Daniel D. Tempesta | ||
Daniel D. Tempesta | |||
Executive Vice President and Chief Financial Officer | |||
(Principal Financial Officer and duly authorized signatory) |
Incorporated by Reference | |||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Filed Herewith | |||||||
3.1 | Amended and Restated Certificate of Incorporation of the Registrant. | 10-Q | 0-27038 | 3.2 | 5/11/2001 | ||||||||
3.2 | Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant. | 10-Q | 0-27038 | 3.1 | 8/9/2004 | ||||||||
3.3 | Certificate of Ownership and Merger. | 8-K | 0-27038 | 3.1 | 10/19/2005 | ||||||||
3.4 | Amended and Restated Bylaws of the Registrant. | 8-K | 0-27038 | 3.1 | 11/13/2007 | ||||||||
3.5 | Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant, as amended. | S-3 | 333-142182 | 3.3 | 4/18/2007 | ||||||||
3.6 | Certificate of Elimination of the Series A Participating Preferred Stock | 8-K | 0-27038 | 3.1 | 8/20/2013 | ||||||||
3.7 | Certificate of Designation of Rights, Preferences and Privileges of Series A Participating Preferred Stock | 8-K | 0-27038 | 3.2 | 8/20/2013 | ||||||||
4.1 | Indenture, dated as of December 22, 2016, among Nuance Communications, Inc., the guarantors party thereto and U.S. Bank National Association. | 8-K | 001-36056 | 4.1 | 12/22/2016 | ||||||||
10.1 | Nuance Communications, Inc. 2000 Stock Plan (as amended January 30, 2017) | 8-K | 001-36056 | 10.1 | 2/3/2017 | ||||||||
31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a). | X | |||||||||||
31.2 | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a). | X | |||||||||||
32.1 | Certification Pursuant to 18 U.S.C. Section 1350. | X | |||||||||||
101.0 | The following materials from Nuance Communications, Inc.’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Loss, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, and (v) Notes to Unaudited Condensed Consolidated Financial Statements. | X |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ Paul A. Ricci | ||
Paul A. Ricci | |||
Chief Executive Officer and Chairman of the Board |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ Daniel D. Tempesta | ||
Daniel D. Tempesta | |||
Executive Vice President and Chief Financial Officer |
By: | /s/ Paul A. Ricci | ||
Paul A. Ricci | |||
Chief Executive Officer and Chairman of the Board |
By: | /s/ Daniel D. Tempesta | ||
Daniel D. Tempesta | |||
Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
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Dec. 31, 2016 |
Jan. 31, 2017 |
|
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | NUAN | |
Entity Registrant Name | Nuance Communications, Inc. | |
Entity Central Index Key | 0001002517 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 291,563,192 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Net loss | $ (23,929) | $ (12,065) |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment | (30,566) | (8,904) |
Pension Adjustments | 118 | 74 |
Unrealized (loss) gain on marketable securities | (31) | (67) |
Total other comprehensive loss, net | (30,479) | (8,897) |
Comprehensive loss | $ (54,408) | $ (20,962) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Dec. 31, 2016 |
Sep. 30, 2016 |
---|---|---|
Accounts receivable, allowances for doubtful accounts | $ 11,492 | $ 11,038 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 560,000 | 560,000 |
Common stock, shares issued | 295,187 | 291,384 |
Common stock, shares outstanding | 291,436 | 287,633 |
Treasury stock, shares | 3,751 | 3,751 |
Organization and Presentation |
3 Months Ended |
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Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Presentation | Organization and Presentation The consolidated financial statements include the accounts of Nuance Communications, Inc. (“Nuance”, “we”, "our", or “the Company”) and our wholly-owned subsidiaries. We prepared these unaudited interim consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (the “U.S.” or the "United States") and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The condensed consolidated financial statements reflect all adjustments that, in our opinion, are necessary to present fairly our financial position, results of operations and cash flows for the periods indicated. The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and classifications of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. During the second quarter of fiscal year 2016, we reclassified certain government payroll incentive credits previously reported in the general and administrative expense to research and development expense, cost of revenue and sales and marketing. These changes had no impact on consolidated net income or cash flows in any period. Although we believe the disclosures in these financial statements are adequate to make the information presented not misleading, certain information in the footnote disclosures of the financial statements has been condensed or omitted where it substantially duplicates information provided in our latest audited consolidated financial statements, in accordance with the rules and regulations of the SEC. Accordingly, these financial statements should be read in conjunction with the audited financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2016. The results of operations for the three months ended December 31, 2016 and 2015, respectively, are not necessarily indicative of the results for the entire fiscal year or any future period. We have evaluated subsequent events from December 31, 2016 through the date of the issuance of these consolidated financial statements and have determined that no material subsequent events have occurred that would affect the information presented in these consolidated financial statements. |
Summary of Significant Accounting Policies |
3 Months Ended |
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Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Recently Adopted Accounting Standards Effective October 1, 2016, we implemented Accounting Standards Update ("ASU") No. 2015-02, “Amendments to the Consolidation Analysis” ("ASU 2015-02"). The amendments in ASU 2015-02 provide guidance on evaluating whether a company should consolidate certain legal entities. In accordance with the guidance, all legal entities are subject to reevaluation under the revised consolidation model. The implementation of ASU 2015-02 had no impact on our consolidated financial statements. Effective October 1, 2016, we implemented ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"), to provide guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and to provide related footnote disclosures. The implementation of ASU 2014-15 had no impact on our consolidated financial statements. Effective October 1, 2016, we implemented ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period" ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. The implementation of ASU 2014-12 had no impact on our consolidated financial statements. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board and are adopted by us as of the specified effective dates. Unless otherwise discussed, such pronouncements did not have or will not have a significant impact on our consolidated financial position, results of operations and cash flows or do not apply to our operations. In August 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASC 2016-15"), which provides guidance on the classification of certain specific cash flow issues including debt prepayment or extinguishment costs, settlement of certain debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of certain insurance claims and distributions received from equity method investees. The standard requires the use of a retrospective approach to all periods presented, but may be applied prospectively if retrospective application would be impracticable. ASU 2016-15 is effective for us in the first quarter of fiscal year 2019, and early application is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-15 on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for us in the first quarter of fiscal year 2018, and early application is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-09 on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases" ("ASU 2016-02"). ASU 2016-02 requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. ASU 2016-02 is effective for us in the first quarter of fiscal year 2020, and early application is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-02 on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 amends the guidance on the classification and measurement of financial instruments. Although ASU 2016-01 retains many current requirements, it significantly revises accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments and is effective for us in the first quarter of fiscal year 2019. We do not believe that ASU 2016-01 will have a material impact on our consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers: Topic 606" ("ASU 2014-09"), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 permits two methods of adoption: (i) retrospective to each prior reporting period presented; or (ii) retrospective with the cumulative effect of initially applying the guidance recognized at the date of initial application. |
Business Acquisitions |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions | Business Acquisitions As part of our business strategy, we have acquired, and may acquire in the future, certain businesses and technologies primarily to expand our products and service offerings. Fiscal Year 2017 Acquisitions During the first quarter of fiscal year 2017, we acquired several businesses in our Enterprise and Healthcare segments that were not significant individually or in the aggregate. The total aggregate consideration for these acquisitions was $26.1 million including an estimated fair value for future contingent payments. The results of operations of these acquisitions have been included in our financial results since their respective acquisition dates. Pro forma results of operations have not been presented because the effects of the business combinations completed in the first quarter of fiscal year 2017, individually and in aggregate, were neither material nor significant to our consolidated financial results. We have also not presented revenue or the results of operations for each of these business combinations, from the date of acquisition, as they were similarly neither material nor significant to our consolidated financial results. The fair value estimates for the assets acquired and liabilities assumed for acquisitions completed during the first quarter of fiscal year 2017 were based upon preliminary calculations and valuations, and our estimates and assumptions for each of these acquisitions are subject to change as we obtain additional information during the respective measurement periods (up to one year from the respective acquisition dates). The primary areas of preliminary estimates that were not yet finalized related to certain assets and liabilities acquired. There were no significant changes to the fair value estimates during the current year. Fiscal Year 2016 Acquisitions Acquisition of TouchCommerce, Inc. In August 2016, we acquired all of the outstanding stock of TouchCommerce. TouchCommerce is a provider of omni-channel solutions to engage their customers on any device through online chat, guides, personalized content, and other automated tools, resulting in enhanced customer experience, increased revenue and reduced support costs. We expect this acquisition to expand our customer care solutions with a range of new digital engagement offerings, including live chat, customer analytics and personalization solutions within our Enterprise segment. We expect to be able to provide an end-to-end engagement platform that merges intelligent self-service with assisted service to increase customer satisfaction, strengthen customer loyalty and improve business results. The aggregate consideration for this transaction was $218.1 million, and included $113.0 million paid in cash and $85.0 million paid in our common stock. The remaining $20.1 million is expected to be paid in November 2017 at the conclusion of an indemnity period in either cash or our common stock, at our election. The acquisition was a stock purchase and the goodwill resulting from this acquisition is not deductible for tax purposes. The results of operations for this acquisition have been included in our Enterprise segment from the acquisition date. A summary of the preliminary allocation of the purchase consideration for our TouchCommerce acquisition is as follows (dollars in thousands):
Other Fiscal Year 2016 Acquisitions During fiscal year 2016, we acquired several other businesses in our Healthcare segment that were not significant individually or in the aggregate. The total aggregate cash consideration for these acquisitions was $50.1 million including an estimated fair value for future contingent payments. The results of operations of these acquisitions have been included in our financial results since their respective acquisition dates. Acquisition-Related Costs, net Acquisition-related costs include costs related to business and other acquisitions, including potential acquisitions. These costs consist of (i) transition and integration costs, including retention payments, transitional employee costs and earn-out payments treated as compensation expense, as well as the costs of integration-related activities, including services provided by third-parties; (ii) professional service fees and expenses, including financial advisory, legal, accounting, and other outside services incurred in connection with acquisition activities, and disputes and regulatory matters related to acquired entities; and (iii) adjustments to acquisition-related items that are required to be marked to fair value each reporting period, such as contingent consideration, and other items related to acquisitions for which the measurement period has ended, such as gains or losses on settlements of pre-acquisition contingencies. The components of acquisition-related costs, net are as follows (dollars in thousands):
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill and intangible assets for the three months ended December 31, 2016, are as follows (dollars in thousands):
During the first quarter of fiscal year 2017, we acquired a speech patent portfolio for total cash consideration of $35.0 million which was paid in January 2017. |
Financial Instruments and Hedging Activities |
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Financial Instruments and Hedging Activities | Financial Instruments and Hedging Activities Derivatives Not Designated as Hedges Forward Currency Contracts We operate our business in countries throughout the world and transact business in various foreign currencies. Our foreign currency exposures typically arise from transactions denominated in currencies other than the functional currency of our operations. We have a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effect of certain foreign currency exposures. Our program is designed so that increases or decreases in our foreign currency exposures are offset by gains or losses on the foreign currency forward contracts in order to mitigate the risks and volatility associated with our foreign currency transactions. Generally, we enter into such contracts for less than 90 days and have no cash requirements until maturity. At December 31, 2016 and September 30, 2016, we had outstanding contracts with a total notional value of $196.1 million and $215.2 million, respectively. We have not designated these forward contracts as hedging instruments pursuant to the authoritative guidance for derivatives and hedging, and accordingly, we record the fair value of these contracts at the end of each reporting period in our consolidated balance sheet, with the unrealized gains and losses recognized immediately in earnings as other expense, net in our consolidated statements of operations. The cash flows related to the settlement of these contracts are included in cash flows from investing activities within our consolidated statement of cash flows. Security Price Guarantees From time to time we enter into agreements that allow us to issue shares of our common stock as part or all of the consideration related to business acquisitions, partnering and technology acquisition activities. Some of these shares are issued subject to security price guarantees, which are accounted for as derivatives. We have determined that these instruments would not be considered equity instruments if they were freestanding. Certain of the security price guarantees require payment from either us to a third party, or from a third party to us, based upon the difference between the price of our common stock on the issue date and an average price of our common stock approximately six months following the issue date. We have also issued minimum price guarantees that may require payments from us to a third party based on the average share price of our common stock approximately six months following the issue date if our stock price falls below the minimum price guarantee. Changes in the fair value of these security price guarantees are reported in other expense, net in our consolidated statements of operations. We have no outstanding shares subject to security price guarantees at December 31, 2016. The following table provides a quantitative summary of the fair value of our derivative instruments as of December 31, 2016 and September 30, 2016 (dollars in thousands):
The following tables summarize the activity of derivative instruments for the three months ended December 31, 2016 and 2015 (dollars in thousands):
Other Financial Instruments Financial instruments including cash equivalents, accounts receivable and accounts payable are carried in the consolidated financial statements at amounts that approximate their fair value based on the short maturities of those instruments. Marketable securities and derivative instruments are carried at fair value. |
Fair Value Measures |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measures | Fair Value Measures Fair value is defined as the price that would be received for an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Valuation techniques must maximize the use of observable inputs and minimize the use of unobservable inputs. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The following summarizes the three levels of inputs required to measure fair value, of which the first two are considered observable and the third is considered unobservable:
Assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and September 30, 2016 consisted of (dollars in thousands):
The following table provides a summary of changes in fair value of our Level 3 financial instruments for the three months ended December 31, 2016 and 2015 (dollars in thousands):
Our financial liabilities valued based upon Level 3 inputs are composed of contingent consideration arrangements relating to our acquisitions. We are contractually obligated to pay contingent consideration to the selling shareholders upon the achievement of specified objectives, including the achievement of future bookings and sales targets related to the products of the acquired entities and therefore are recorded as contingent consideration liabilities at the time of the acquisitions. We update our assumptions each reporting period based on new developments and record such amounts at fair value based on the revised assumptions until the consideration is paid upon the achievement of the specified objectives or eliminated upon failure to achieve the specified objectives. Contingent acquisition payment liabilities are scheduled to be paid in periods through fiscal year 2019. As of December 31, 2016, we could be required to pay up to $17.4 million for contingent consideration arrangements if the specified objectives are achieved. We have determined the fair value of the liabilities for the contingent consideration based on a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. The fair value of the contingent consideration liability associated with future payments was based on several factors, the most significant of which are the estimated cash flows projected from future product sales and the risk adjusted discount rate for the fair value measurement. |
Accrued Expenses and Other Current Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (dollars in thousands):
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Deferred Revenue |
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Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Revenue | Deferred Revenue Deferred maintenance revenue consists of prepaid fees received for post-contract customer support for our products, including telephone support and the right to receive unspecified upgrades/updates on a when-and-if-available basis. Unearned revenue includes fees for up-front set-up of the service environment; fees charged for on-demand service; certain software arrangements for which we do not have fair value of post-contract customer support, resulting in ratable revenue recognition for the entire arrangement on a straight-line basis; and fees in excess of estimated earnings on percentage-of-completion service contracts. Deferred revenue consisted of the following (dollars in thousands):
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Restructuring and Other Charges, net |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | Restructuring and Other Charges, net Restructuring and other charges, net include restructuring expenses together with other charges that are unusual in nature, are the result of unplanned events, and arise outside of the ordinary course of continuing operations. Restructuring expenses consist of employee severance costs and may also include charges for excess facility space and other contract termination costs. Other charges may include gains or losses on non-controlling strategic equity interests, litigation contingency reserves, costs related to a transition agreement for our Chief Executive Officer, and gains or losses on the sale or disposition of certain non-strategic assets or product lines. The following table sets forth accrual activity relating to restructuring reserves for the three months ended December 31, 2016 (dollars in thousands):
Restructuring and other charges, net by component and segment are as follows (dollars in thousands):
Fiscal Year 2017 During the three months ended December 31, 2016, we recorded restructuring charges of $5.6 million. The restructuring charges for the three months ended December 31, 2016 included $3.7 million for severance related to the reduction of approximately 90 employees as part of our initiatives to reduce costs and optimize processes. The restructuring charges also included a $1.9 million charge for the closure of certain excess facility space. In addition, during the three months ended December 31, 2016, we have recorded certain other charges that totaled $1.2 million for costs related to a transition agreement for our Chief Executive Officer as communicated on our Form 8-K filed on November 17, 2016. We expect that the remaining severance payments of $1.6 million will be substantially paid by the end of fiscal year 2017. We expect that the remaining payments of $11.2 million for the closure of excess facility space will be paid through fiscal year 2025, in accordance with the terms of the applicable leases. Fiscal Year 2016 During the three months ended December 31, 2015, we recorded restructuring charges of $7.9 million. The restructuring charges for the three months ended December 31, 2015 included $4.6 million for severance related to the reduction of approximately 110 employees as part of our initiatives to reduce costs and optimize processes. The restructuring charges also included a $3.3 million charge for the closure of certain excess facility space. |
Debt and Credit Facilities |
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Debt and Credit Facilities | Debt and Credit Facilities At December 31, 2016 and September 30, 2016, we had the following long-term borrowing obligations (dollars in thousands):
The following table summarizes the maturities of our borrowing obligations as of December 31, 2016 (dollars in thousands):
The estimated fair value of our long-term debt approximated $3,152.6 million (face value $3,185.9 million) and $2,630.3 million (face value $2,687.1 million) at December 31, 2016 and September 30, 2016, respectively. These fair value amounts represent the value at which our lenders could trade our debt within the financial markets and do not represent the settlement value of these long-term debt liabilities to us at each reporting date. The fair value of the long-term debt will continue to vary each period based on fluctuations in market interest rates, as well as changes to our credit ratings. The Senior Notes and the Convertible Debentures are traded and the fair values of each borrowing was estimated using the averages of the bid and ask trading quotes at each respective reporting date. We had no outstanding balance on the Revolving Credit Facility at December 31, 2016 or September 30, 2016. 5.375% Senior Notes due 2020 In August 2012, we issued $700.0 million aggregate principal amount of 5.375% Senior Notes due on August 15, 2020 in a private placement. In October 2012, we issued an additional $350.0 million aggregate principal amount of our 5.375% Senior Notes (collectively the “2020 Senior Notes”). The 2020 Senior Notes bear interest at 5.375% per year, payable in cash semi-annually in arrears. The 2020 Senior Notes are our unsecured senior obligations and are guaranteed on an unsecured senior basis by certain of our domestic subsidiaries, ("the Subsidiary Guarantors"). The 2020 Senior Notes and guarantees rank equally in right of payment with all of our and the Subsidiary Guarantors' existing and future unsecured senior debt and rank senior in right of payment to all of our and the Subsidiary Guarantors' future unsecured subordinated debt. The 2020 Senior Notes and guarantees effectively rank junior to all secured debt of our and the Subsidiary Guarantors to the extent of the value of the collateral securing such debt and to all liabilities, including trade payables, of our subsidiaries that have not guaranteed the 2020 Senior Notes. In January 2017, we repurchased $600.0 million in aggregate principal amount of our 2020 Senior Notes using cash and cash equivalents and the net proceeds from our 2026 Senior Notes issued in December 2015. In January 2017, we recorded an extinguishment loss of $18.4 million. In accordance with the authoritative guidance for debt instruments, a loss on extinguishment is equal to the difference between the reacquisition price and the net carrying amount of the extinguished debt, including any unamortized debt discount or issuance costs. Following this activity, $450.0 million in aggregate principal amount of our 2020 Senior Notes remain outstanding. The aggregate debt discount is being amortized to interest expense using the effective interest rate method through August 2020. 5.625% Senior Notes due 2026 In December 2016, we issued $500.0 million aggregate principal amount of 5.625% Senior Notes due on December 15, 2026 (the "2026 Senior Notes") in a private placement. The proceeds from the 2026 Senior Notes were approximately $495.0 million, net of issuance costs, and we used the proceeds to repurchase a portion of our 2020 Senior Notes. The 2026 Senior Notes bear interest at 5.625% per year, payable in cash semi-annually in arrears, beginning on June 15, 2017. The 2026 Senior Notes are unsecured senior obligations and are guaranteed on an unsecured senior basis by our Subsidiary Guarantors. The 2026 Senior Notes and the guarantees rank equally in right of payment with all of our and the Subsidiary Guarantors’ existing and future unsecured senior debt and rank senior in right of payment to all of our and the Subsidiary Guarantors’ future unsecured subordinated debt. The 2026 Senior Notes and guarantees effectively rank junior to all our secured debt and that of the Subsidiary Guarantors to the extent of the value of the collateral securing such debt and to all liabilities, including trade payables, of our subsidiaries that have not guaranteed the 2026 Senior Notes. At any time before December 15, 2021, we may redeem all or a portion of the 2026 Senior Notes at a redemption price equal to 100% of the aggregate principal amount of the 2026 Senior Notes to be redeemed, plus a “make-whole” premium and accrued and unpaid interest to, but excluding, the redemption date. At any time on or after December 15, 2021, we may redeem all or a portion of the 2026 Senior Notes at certain redemption prices expressed as percentages of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date. At any time and from time to time before December 15, 2021, we may redeem up to 35% of the aggregate outstanding principal amount of the 2026 Senior Notes with the net cash proceeds received by us from certain equity offerings at a price equal to 105.625% of the aggregate principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided that the redemption occurs no later than 120 days after the closing of the related equity offering, and at least 50% of the original aggregate principal amount of the 2026 Senior Notes remains outstanding immediately thereafter. Upon the occurrence of certain asset sales or a change in control, we must offer to repurchase the 2026 Senior Notes at a price equal to 100% in the case of an asset sale, or 101% in the case of a change of control, of the principal amount plus accrued and unpaid interest to, but excluding, the repurchase date. 6.0% Senior Notes due 2024 In June 2016, we issued $300.0 million aggregate principal amount of 6.0% Senior Notes due on July 1, 2024 (the "2024 Senior Notes") in a private placement. The proceeds from the 2024 Senior Notes were approximately $297.5 million, net of issuance costs. The 2024 Senior Notes bear interest at 6.0% per year, payable in cash semi-annually in arrears. The 2024 Senior Notes are unsecured senior obligations and are guaranteed on an unsecured senior basis by our Subsidiary Guarantors. The 2024 Senior Notes and the guarantees rank equally in right of payment with all of our and the Subsidiary Guarantors’ existing and future unsecured senior debt, and rank senior in right of payment to all of our and the Subsidiary Guarantors’ future unsecured subordinated debt. The 2024 Senior Notes and guarantees effectively rank junior to all our secured debt and that of the Subsidiary Guarantors to the extent of the value of the collateral securing such debt and to all liabilities, including trade payables, of our subsidiaries that have not guaranteed the 2024 Senior Notes. 1.0% Convertible Debentures due 2035 In December 2015, we issued $676.5 million in aggregate principal amount of 1.0% Senior Convertible Debentures due in 2035 (the “1.0% 2035 Debentures”). We used a portion of the proceeds to repurchase $38.3 million in aggregate principal on our 2.75% Senior Convertible Debentures due in 2031 (the “2031 Debentures”) and to repay the aggregate principal balance of $472.5 million on the term loan. The 1.0% 2035 Debentures bear interest at 1.0% per year, payable in cash semi-annually in arrears. The 1.0% 2035 Debentures mature on December 15, 2035, subject to the right of the holders to require us to redeem the 1.0% 2035 Debentures on December 15, 2022, 2027, or 2032. The 1.0% 2035 Debentures are general senior unsecured obligations and rank equally in right of payment with all of our existing and future unsecured, unsubordinated indebtedness and senior in right of payment to any indebtedness that is contractually subordinated to the 1.0% 2035 Debentures. The 1.0% 2035 Debentures will be effectively subordinated to indebtedness and other liabilities of our subsidiaries. The initial conversion price is approximately $27.22 per share. At issuance, we allocated $495.4 million to long-term debt, and $181.1 million has been recorded as additional paid-in capital, which is being amortized to interest expense using the effective interest rate method through December 2022. As of December 31, 2016 and September 30, 2016, none of the conversion criteria were met for the 1.0% 2035 Debentures. If the conversion criteria were met, we could be required to repay all or some of the aggregate principal amount in cash prior to the maturity date. 2.75% Convertible Debentures due 2031 In October 2011, we issued $690.0 million in aggregate principal amount of 2.75% Senior Convertible Debentures due in 2031 in a private placement. The 2031 Debentures bear interest at 2.75% per year, payable in cash semi-annually in arrears. The 2031 Debentures mature on November 1, 2031, subject to the right of the holders to require us to redeem the 2031 Debentures on November 1, 2017, 2021, and 2026. The 2031 Debentures are general senior unsecured obligations and rank equally in right of payment with all of our existing and future unsecured, unsubordinated indebtedness and senior in right of payment to any indebtedness that is contractually subordinated to the 2031 Debentures. The 2031 Debentures will be effectively subordinated to indebtedness and other liabilities of our subsidiaries. The initial conversion price is approximately $32.30 per share. At issuance, we allocated $533.6 million to long-term debt, and $156.4 million has been recorded as additional paid-in capital, which is being amortized to interest expense using the effective interest rate method through November 2017. In June 2015, we entered into separate privately negotiated agreements with certain holders of our 2031 Debentures to exchange, in a private placement, $256.2 million in aggregate principal amount of our 2031 Debentures for approximately $263.9 million in aggregate principal amount of our 1.5% 2035 Debentures. In December 2015, we entered into separate privately negotiated agreements with certain holders of our 2031 Debentures to repurchase $38.3 million in aggregate principal with proceeds received from the issuance of our 1.0% 2035 Debentures. Upon repurchase we recorded an extinguishment loss of $2.4 million in other expense, net, in the accompanying consolidated statements of operations. In accordance with the authoritative guidance for convertible debt instruments, a loss on extinguishment is equal to the difference between the reacquisition price and the net carrying amount of the extinguished debt for our 2031 Debentures, including any unamortized debt discount or issuance costs. Following this activity, $395.5 million in aggregate principal amount of our 2031 Debentures remain outstanding. As of December 31, 2016, the remaining aggregate outstanding principal balance has been classified as current portion of long-term debt on the consolidated balance sheet as the holders have the right to require us to redeem on November 1, 2017. The aggregate debt discount is being amortized to interest expense using the effective interest rate method through November 2017. As of December 31, 2016 and September 30, 2016, none of the conversion criteria were met for the 2031 Debentures. If the conversion criteria were met, we could be required to repay all or some of the aggregate principal amount in cash prior to the maturity date. 1.50% Convertible Debentures due 2035 In June 2015, we issued $263.9 million in aggregate principal amount of 1.50% Senior Convertible Debentures due in 2035 (the “1.5% 2035 Debentures”) in exchange for $256.2 million in aggregate principal amount of our 2031 Debentures. The 1.5% 2035 Debentures were issued at 97.09% of the principal amount, which resulted in a discount of $7.7 million. The 1.5% 2035 Debentures bear interest at 1.50% per year, payable in cash semi-annually in arrears. The 1.5% 2035 Debentures mature on November 1, 2035, subject to the right of the holders to require us to redeem the 1.5% 2035 Debentures on November 1, 2021, 2026, or 2031. The 1.5% 2035 Debentures are general senior unsecured obligations and rank equally in right of payment with all of our existing and future unsecured, unsubordinated indebtedness and senior in right of payment to any indebtedness that is contractually subordinated to the 1.5% 2035 Debentures. The 1.5% 2035 Debentures will be effectively subordinated to indebtedness and other liabilities of our subsidiaries. The initial conversion price is approximately $23.26 per share. At issuance, we allocated $208.6 million to long-term debt, and $55.3 million has been recorded as additional paid-in capital, which is being amortized to interest expense using the effective interest rate method through November 2021. As of December 31, 2016 and September 30, 2016, none of the conversion criteria were met for the 1.5% 2035 Debentures. If the conversion criteria were met, we could be required to repay all or some of the aggregate principal amount in cash prior to the maturity date. Revolving Credit Facility In April 2016, we entered into a credit agreement that provides for a $242.5 million revolving credit line, including letters of credit (together, the “Revolving Credit Facility”). The Revolving Credit Facility matures on April 15, 2021. As of December 31, 2016, issued letters of credit in the aggregate amount of $4.3 million were treated as issued and outstanding when calculating the borrowing availability under the Revolving Credit Facility. As of December 31, 2016, we had $238.2 million available for additional borrowing under the Revolving Credit Facility. Any amounts outstanding under the Revolving Credit Facility will bear interest, at either (i) LIBOR plus an applicable margin of 1.50% or 1.75%, or (ii) the alternative base rate plus an applicable margin of 0.50% or 0.75%. The Revolving Credit Facility is secured by substantially all assets of ours and our Subsidiary Guarantors. The Revolving Credit Facility contains customary affirmative and negative covenants and conditions to borrowing, as well as customary events of default. |
Stockholders' Equity (Notes) |
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Dec. 31, 2016 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Equity Share Repurchases On April 29, 2013, our Board of Directors approved a share repurchase program for up to $500.0 million of our outstanding shares of common stock. On April 29, 2015, our Board of Directors approved an additional $500.0 million under our share repurchase program. Since the commencement of the program, we have repurchased 40.7 million shares for $707.5 million. These shares were retired upon repurchase. Approximately $292.5 million remained available for share repurchases as of December 31, 2016 pursuant to our share repurchase program. Under the terms of the share repurchase program, we have the ability to repurchase shares from time to time through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The share repurchase program does not require us to acquire any specific number of shares and may be modified, suspended, extended or terminated by us at any time without prior notice. The timing and the amount of any purchases will be determined by management based on an evaluation of market conditions, capital allocation alternatives, and other factors. |
Net Loss Per Share |
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Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||||
Net (Loss) Income Per Share | Net Loss Per Share As of December 31, 2016 and 2015, diluted weighted average common shares outstanding is equal to basic weighted average common shares due to our net loss position. Common equivalent shares are excluded from the computation of diluted net loss per share if their effect is anti-dilutive. Potentially dilutive common equivalent shares aggregating to 9.9 million and 10.0 million shares for the three months ended December 31, 2016 and 2015, respectively, have been excluded from the computation of diluted net loss per share because their inclusion would be anti-dilutive. |
Stock-Based Compensation |
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Share-based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation We recognize stock-based compensation expense over the requisite service period. Our share-based awards are accounted for as equity instruments. The amounts included in the consolidated statements of operations relating to stock-based compensation are as follows (dollars in thousands):
Stock Options The table below summarizes activity relating to stock options for the three months ended December 31, 2016:
The weighted-average intrinsic value of stock options exercised during the three months ended December 31, 2016 and 2015 was $0.7 million and $7.6 million, respectively. Restricted Units Restricted units are not included in issued and outstanding common stock until the shares are vested and released. The purchase price for vested restricted units is $0.001 per share. The table below summarizes activity relating to restricted units for the three months ended December 31, 2016:
A summary of weighted-average grant-date fair value for awards granted and intrinsic value of all restricted units vested during the periods noted is as follows:
Restricted Stock Awards Restricted stock awards are included in the issued and outstanding common stock at the date of grant. The table below summarizes activity related to restricted stock awards for the three months ended December 31, 2016:
No restricted stock awards vested during the three months ended December 31, 2016. The weighted-average intrinsic value of restricted stock awards vested during the three months ended December 31, 2015 was $4.3 million. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The components of loss before income taxes are as follows (dollars in thousands):
The components of provision from income taxes are as follows (dollars in thousands):
The effective income tax rate was (76.3)% and (180.7)% for the three months ended December 31, 2016 and December 31, 2015, respectively. Our current effective income tax rate differs from the U.S. federal statutory rate of 35% primarily due to current period losses in the United States that require an additional valuation allowance and accordingly provide no benefit to the provision as well as an increase to indefinite lived deferred tax liabilities. This is partially offset by our earnings in foreign operations that are subject to a significantly lower tax rate than the U.S. statutory tax rate, driven primarily by our subsidiaries in Ireland. The effective income tax rate is based upon the income for the year, the composition of the income in different countries, changes relating to valuation allowances for certain countries if and as necessary, and adjustments, if any, for the potential tax consequences, benefits or resolutions of audits or other tax contingencies. Our aggregate income tax rate in foreign jurisdictions is lower than our income tax rate in the United States; the majority of our income before provision for income taxes from foreign operations has been earned by subsidiaries in Ireland. Our effective tax rate may be adversely affected by earnings being lower than anticipated in countries where we have lower statutory tax rates and higher than anticipated in countries where we have higher statutory tax rates. At December 31, 2016 and September 30, 2016, we had gross tax effected unrecognized tax benefits of $28.0 million and $27.3 million, respectively, and is included in other long-term liabilities. If these benefits were recognized, they would impact our effective tax rate. We do not expect a significant change in the amount of unrecognized tax benefits within the next 12 months. |
Commitments and Contingencies |
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Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Other Claims Similar to many companies in the software industry, we are involved in a variety of claims, demands, suits, investigations and proceedings that arise from time to time relating to matters incidental to the ordinary course of our business, including actions with respect to contracts, intellectual property, employment, benefits and securities matters. We have estimated the amount of probable losses that may result from all currently pending matters, and such amounts are reflected in our consolidated financial statements. These recorded amounts are not material to our consolidated financial position or results of operations and no additional material losses related to these pending matters are reasonably possible. While it is not possible to predict the outcome of these matters with certainty, we do not expect the results of any of these actions to have a material adverse effect on our results of operations or financial position. However, each of these matters is subject to uncertainties, the actual losses may prove to be larger or smaller than the accruals reflected in our consolidated financial statements, and we could incur judgments or enter into settlements of claims that could adversely affect our financial position, results of operations or cash flows. Guarantees and Other We include indemnification provisions in the contracts we enter into with customers and business partners. Generally, these provisions require us to defend claims arising out of our products’ infringement of third-party intellectual property rights, breach of contractual obligations and/or unlawful or otherwise culpable conduct. The indemnity obligations generally cover damages, costs and attorneys’ fees arising out of such claims. In most, but not all cases, our total liability under such provisions is limited to either the value of the contract or a specified, agreed upon amount. In some cases our total liability under such provisions is unlimited. In many, but not all cases, the term of the indemnity provision is perpetual. While the maximum potential amount of future payments we could be required to make under all the indemnification provisions is unlimited, we believe the estimated fair value of these provisions is minimal due to the low frequency with which these provisions have been triggered. We indemnify our directors and officers to the fullest extent permitted by Delaware law, which provides among other things, indemnification to directors and officers for expenses, judgments, fines, penalties and settlement amounts incurred by such persons in their capacity as a director or officer of the company, regardless of whether the individual is serving in any such capacity at the time the liability or expense is incurred. Additionally, in connection with certain acquisitions we have agreed to indemnify the former officers and members of the boards of directors of those companies, on similar terms as described above, for a period of six years from the acquisition date. In certain cases we purchase director and officer insurance policies related to these obligations, which fully cover the six year period. To the extent that we do not purchase a director and officer insurance policy for the full period of any contractual indemnification, and such directors and officers do not have coverage under separate insurance policies, we would be required to pay for costs incurred, if any, as described above. |
Segment and Geographic Information and Significant Customers |
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Segment and Geographic Information and Significant Customers | Segment and Geographic Information We operate in, and report financial information for, the following four reportable segments: Healthcare, Mobile, Enterprise, and Imaging. Segment profit is an important measure used for evaluating performance and for decision-making purposes and reflects the direct controllable costs of each segment together with an allocation of sales and corporate marketing expenses, and certain research and development project costs that benefit multiple product offerings. Segment profit represents income from operations excluding stock-based compensation, amortization of intangible assets, acquisition-related costs, net, restructuring and other charges, net, costs associated with intellectual property collaboration agreements, other expense, net and certain unallocated corporate expenses. We believe that these adjustments allow for more complete comparisons to the financial results of the historical operations. The Healthcare segment is primarily engaged in clinical speech and clinical language understanding solutions that improve the clinical documentation process - from capturing the complete patient record to improving clinical documentation and quality measures for reimbursement. The Mobile segment is primarily engaged in providing a broad portfolio of specialized virtual assistants and connected services built on voice recognition, text-to-speech, natural language understanding, dialog, and text input technologies. Our Enterprise segment is primarily engaged in using speech, natural language understanding, and artificial intelligence to provide automated customer solutions and services for voice, mobile, web and messaging channels. The Imaging segment is primarily engaged in software solutions and expertise that help professionals and organizations to gain optimal control of their document and information processes through scanning and print management. During the second quarter of fiscal year 2016, we reclassified certain government payroll incentive credits previously reported in the general and administrative expense to research and development expense, cost of revenue, and sales and marketing. Accordingly, the segment results in prior periods have been recast to conform to the current period segment reporting presentation. We do not track our assets by operating segment. Consequently, it is not practical to show assets by operating segment or by depreciation by operating segment. The following table presents segment results along with a reconciliation of segment profit to loss before income taxes (dollars in thousands):
No country outside of the United States provided greater than 10% of our total revenues. Revenues, classified by the major geographic areas in which our customers are located, were as follows (dollars in thousands):
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Summary of Significant Accounting Policies Recently Issued Accounting Pronouncements (Tables) |
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Dec. 31, 2016 | |
Recently Issued Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board and are adopted by us as of the specified effective dates. Unless otherwise discussed, such pronouncements did not have or will not have a significant impact on our consolidated financial position, results of operations and cash flows or do not apply to our operations. In August 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASC 2016-15"), which provides guidance on the classification of certain specific cash flow issues including debt prepayment or extinguishment costs, settlement of certain debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of certain insurance claims and distributions received from equity method investees. The standard requires the use of a retrospective approach to all periods presented, but may be applied prospectively if retrospective application would be impracticable. ASU 2016-15 is effective for us in the first quarter of fiscal year 2019, and early application is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-15 on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for us in the first quarter of fiscal year 2018, and early application is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-09 on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases" ("ASU 2016-02"). ASU 2016-02 requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. ASU 2016-02 is effective for us in the first quarter of fiscal year 2020, and early application is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-02 on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 amends the guidance on the classification and measurement of financial instruments. Although ASU 2016-01 retains many current requirements, it significantly revises accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments and is effective for us in the first quarter of fiscal year 2019. We do not believe that ASU 2016-01 will have a material impact on our consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers: Topic 606" ("ASU 2014-09"), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 permits two methods of adoption: (i) retrospective to each prior reporting period presented; or (ii) retrospective with the cumulative effect of initially applying the guidance recognized at the date of initial application. |
Business Acquisitions Business Acquisitions (Tables) |
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Business Acquisitions Components Of Acquisition Related Costs Table [Text Block] | The components of acquisition-related costs, net are as follows (dollars in thousands):
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Schedule of Business Acquisitions, by Acquisition [Table Text Block] | A summary of the preliminary allocation of the purchase consideration for our TouchCommerce acquisition is as follows (dollars in thousands):
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Goodwill and Intangible Assets (Tables) |
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Changes in Carrying Amount of Goodwill and Intangible Assets | The changes in the carrying amount of goodwill and intangible assets for the three months ended December 31, 2016, are as follows (dollars in thousands):
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Financial Instruments and Hedging Activities (Tables) |
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ScheduleOfOutstandingSharesSubjectToSecurityPriceGuarantees [Table Text Block] | We have no outstanding shares subject to security price guarantees at December 31, 2016. |
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Quantitative Summary of Fair Value of Derivative Instruments | The following table provides a quantitative summary of the fair value of our derivative instruments as of December 31, 2016 and September 30, 2016 (dollars in thousands):
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Summarized Activity of Derivative Instruments | The following tables summarize the activity of derivative instruments for the three months ended December 31, 2016 and 2015 (dollars in thousands):
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Fair Value Measures (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and September 30, 2016 consisted of (dollars in thousands):
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Changes in Fair Value of Contingent Earn-Out Liabilities | The following table provides a summary of changes in fair value of our Level 3 financial instruments for the three months ended December 31, 2016 and 2015 (dollars in thousands):
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Accrued Expenses and Other Current Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (dollars in thousands):
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Deferred Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Revenue | Deferred revenue consisted of the following (dollars in thousands):
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Restructuring and Other Charges, net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrual Activity Relating to Restructuring and Other Charges | The following table sets forth accrual activity relating to restructuring reserves for the three months ended December 31, 2016 (dollars in thousands):
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Restructuring and Other Charges, Net by Segment | Restructuring and other charges, net by component and segment are as follows (dollars in thousands):
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Debt and Credit Facilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table summarizes the maturities of our borrowing obligations as of December 31, 2016 (dollars in thousands):
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Borrowing Obligations and Applicable Margin for Borrowings | At December 31, 2016 and September 30, 2016, we had the following long-term borrowing obligations (dollars in thousands):
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Stock-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation Included in Consolidated Statements of Operations | The amounts included in the consolidated statements of operations relating to stock-based compensation are as follows (dollars in thousands):
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Summary of Stock Options Activity | The table below summarizes activity relating to stock options for the three months ended December 31, 2016:
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Summary of Activity Relating to Restricted Units and Restricted Stock Awards | Restricted stock awards are included in the issued and outstanding common stock at the date of grant. The table below summarizes activity related to restricted stock awards for the three months ended December 31, 2016:
The table below summarizes activity relating to restricted units for the three months ended December 31, 2016:
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Summary of Weighted-Average Grant-Date Fair Value and Intrinsic Value of Restricted Units and Restricted Stock Awards Vested | A summary of weighted-average grant-date fair value for awards granted and intrinsic value of all restricted units vested during the periods noted is as follows:
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Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Benefit from Income Taxes | The components of loss before income taxes are as follows (dollars in thousands):
The components of provision from income taxes are as follows (dollars in thousands):
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Segment and Geographic Information and Significant Customers (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Results Along with Reconciliation of Segment Profit to Income Before Income Taxes | The following table presents segment results along with a reconciliation of segment profit to loss before income taxes (dollars in thousands):
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Classification of Revenue By Major Geographic Areas | Revenues, classified by the major geographic areas in which our customers are located, were as follows (dollars in thousands):
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Business Acquisitions (Components of Acquisition-Related Costs, Net) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Business Acquisition [Line Items] | ||
Transition and integration costs | $ 3,710 | $ 996 |
Professional service fees | 5,017 | 1,403 |
Acquisition-related adjustments | 299 | 81 |
Total | $ 9,026 | $ 2,480 |
Changes in Carrying Amount of Goodwill and Intangible Assets (Detail) $ in Thousands |
3 Months Ended |
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Dec. 31, 2016
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at September 30, 2016 | $ 3,508,879 |
Goodwill, Acquired During Period | 15,783 |
Amortization | 0 |
Effect of foreign currency translation | (20,789) |
Balance at December 31, 2016 | 3,503,442 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Balance at September 30, 2016 | 762,220 |
Finite-lived Intangible Assets Acquired | 45,133 |
Amortization | (43,401) |
Effect of foreign currency translation | (1,630) |
Balance at December 31, 2016 | 762,322 |
Reporting Unit [Line Items] | |
Goodwill, Purchase Accounting Adjustments | (431) |
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | $ 0 |
Goodwill and Intangible Assets Goodwill and Intangible Assets (Details) $ in Thousands |
3 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 45,133 |
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | $ 0 |
Document Period End Date | Dec. 31, 2016 |
Patents [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 35,000 |
Financial Instruments and Hedging Activities (Additional Information) (Detail) - Derivatives Not Designated as Hedges - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
|
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Notional Amount | $ 196.1 | $ 215.2 |
Maximum | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Term of foreign currency forward contracts | 90 days |
Financial Instruments and Hedging Activities (Quantitative Summary of Fair Value of Derivative Instruments) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
|
Derivatives, Fair Value [Line Items] | ||
Document Period End Date | Dec. 31, 2016 | |
Derivative Instruments Not Designated As Hedging Instruments At Fair Value Net | $ 2,235 | $ 335 |
Foreign currency contracts | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 2,235 | 335 |
Foreign currency contracts | Accrued Expenses And Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 0 | $ 0 |
Financial Instruments and Hedging Activities (Summarized Activity of Derivative Instruments) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Document Period End Date | Dec. 31, 2016 | |
Derivatives Not Designated as Hedges | Foreign currency contracts | Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | $ (11,615) | $ (3,373) |
Fair Value Measures (Changes in Fair Value of Contingent Earn-Out Liabilities) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of period | $ 8,240 | $ 15,961 |
Earn-out liabilities established at time of acquisition | 1,653 | 0 |
Payments and foreign currency translation | 1,498 | (462) |
Adjustments to fair value included in acquisition-related costs, net | 566 | 478 |
Balance at end of period | 8,961 | $ 16,901 |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 17,400 |
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Sep. 30, 2016 |
---|---|---|
Payables and Accruals [Abstract] | ||
Compensation | $ 86,894 | $ 154,028 |
Accrued interest payable | 34,322 | 20,409 |
Cost of revenue related liabilities | 18,723 | 19,351 |
Consulting and professional fees | 18,251 | 18,001 |
Facilities related liabilities | 7,934 | 7,382 |
Sales and marketing incentives | 3,949 | 6,508 |
Sales and other taxes payable | 2,488 | 2,708 |
Other | 10,881 | 9,272 |
Total | $ 183,442 | $ 237,659 |
Deferred Revenue (Detail) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Sep. 30, 2016 |
---|---|---|
Total current deferred revenue | $ 399,299 | $ 349,173 |
Total long-term deferred revenue | 403,155 | 386,960 |
Deferred maintenance revenue | ||
Total current deferred revenue | 167,704 | 165,902 |
Total long-term deferred revenue | 56,210 | 59,955 |
Unearned revenue | ||
Total current deferred revenue | 231,595 | 183,271 |
Total long-term deferred revenue | $ 346,945 | $ 327,005 |
Restructuring and Other Charges, net (Accrual Activity Relating to Restructuring and Other Charges) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Restructuring [Roll Forward] | ||
Balance at September 30, 2016 | $ 13,793 | |
Restructuring charges | 5,550 | $ 7,888 |
Restructuring Reserve, Accrual Adjustment | 89 | |
Cash payments | (6,643) | |
Balance at December 31, 2016 | 12,789 | |
Personnel | ||
Restructuring [Roll Forward] | ||
Balance at September 30, 2016 | 2,661 | |
Restructuring charges | 3,651 | |
Restructuring Reserve, Accrual Adjustment | 0 | |
Cash payments | (4,749) | |
Balance at December 31, 2016 | 1,563 | |
Facilities | ||
Restructuring [Roll Forward] | ||
Balance at September 30, 2016 | 11,132 | |
Restructuring charges | 1,899 | |
Restructuring Reserve, Accrual Adjustment | 89 | |
Balance at December 31, 2016 | $ 11,226 |
Restructuring and Other Charges, net (By Segment) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | $ 6,703 | $ 7,888 |
Restructuring charges | 5,550 | 7,888 |
Healthcare | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 2,261 | 701 |
Restructuring charges | 2,261 | 701 |
Mobile | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 213 | 2,784 |
Restructuring charges | 213 | 2,784 |
Enterprise | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 1,031 | 1,104 |
Restructuring charges | 1,031 | 1,104 |
Imaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 712 | 213 |
Restructuring charges | 712 | 213 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 2,486 | 3,086 |
Restructuring charges | 1,333 | 3,086 |
Personnel | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 3,651 | 4,558 |
Restructuring charges | 3,651 | |
Personnel | Healthcare | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 1,984 | |
Personnel | Enterprise | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 424 | |
Personnel | Imaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 361 | |
Facilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 1,899 | 3,330 |
Restructuring charges | 1,899 | |
Facilities | Healthcare | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 0 | |
Facilities | Enterprise | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 20 | |
Facilities | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges, net | 664 | |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring Costs | 1,153 | 0 |
Other Restructuring [Member] | Healthcare | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring Costs | 0 | |
Other Restructuring [Member] | Imaging | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Restructuring Costs | $ 0 | $ 0 |
Restructuring and Other Charges, net (Additional Information) (Detail) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 12,789 | $ 13,793 | |
Restructuring charges | $ 5,550 | $ 7,888 | |
Number of personnel eliminated | 90 | 110 | |
Payments for Restructuring | $ 6,643 | ||
Personnel | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges, net | 3,651 | $ 4,558 | |
Restructuring Reserve | 1,563 | 2,661 | |
Restructuring charges | 3,651 | ||
Payments for Restructuring | 4,749 | ||
Facilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges, net | 1,899 | 3,330 | |
Restructuring Reserve | 11,226 | $ 11,132 | |
Restructuring charges | 1,899 | ||
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other Restructuring Costs | $ 1,153 | $ 0 |
Debt and Credit Facilities (Borrowing Obligations) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 22, 2016 |
Sep. 30, 2016 |
Jun. 21, 2016 |
Oct. 22, 2012 |
Aug. 14, 2012 |
|
Debt Instrument [Line Items] | ||||||||
Document Period End Date | Dec. 31, 2016 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 600,000 | |||||||
Total long-term debt | 2,938,688 | $ 2,433,152 | ||||||
Less: current portion | 977,458 | 0 | ||||||
Non-current portion of long-term debt | 1,961,230 | 2,433,152 | ||||||
Debt Issuance Costs, Noncurrent, Net | 1,423 | (1,506) | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 395,534 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 450,000 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 1,740,383 | |||||||
Long-term Debt, Gross | 3,185,917 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (247,229) | |||||||
5.375% Senior Notes due August 15, 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes, net of unamortized premium | 1,045,968 | 1,046,851 | $ 350,000 | $ 700,000 | ||||
Repayments of Debt | $ 600,000 | |||||||
5.625% Senior Notes due 2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes, net of unamortized premium | 493,471 | $ 500,000 | 0 | |||||
6.0% Senior Notes due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes, net of unamortized premium | 297,678 | 297,601 | $ 300,000 | |||||
Convertible Debentures One Percent Due Twenty Thirty Five [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible Debentures, net of unamortized discount | 510,589 | 504,712 | ||||||
Convertible Debentures Two Point Seven Five Percent Due November One Twenty Thirty One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible Debentures, net of unamortized discount | 379,762 | 375,208 | ||||||
Convertible Debentures One Point Five Percent Due November One Twenty Thirty Five [Member] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible Debentures, net of unamortized discount | 212,643 | $ 210,286 | ||||||
Term Loan Facility Due August Seventh Twenty Ninteen [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of Debt | $ 472,500 | |||||||
Convertible Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |||||||
Total long-term debt | 1,102,994 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 395,534 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 940,383 | |||||||
Long-term Debt, Gross | 1,335,917 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (232,923) | |||||||
Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 600,000 | |||||||
Total long-term debt | 1,835,694 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 450,000 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 800,000 | |||||||
Long-term Debt, Gross | 1,850,000 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ (14,306) |
Debt and Credit Facilities Borrowing Obligations Detail (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Sep. 30, 2016 |
---|---|---|
Borrowing Obligations Detail [Abstract] | ||
Long-term Debt, Fair Value | $ 3,152.6 | $ 2,630.3 |
Long-term debt, face value | $ 3,185.9 | $ 2,687.1 |
Debt and Credit Facilities 5.375% Senior Notes due 2020 (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Jan. 09, 2017 |
Sep. 30, 2016 |
Oct. 22, 2012 |
Aug. 14, 2012 |
|
Debt Instrument [Line Items] | |||||||
Long-term debt, face value | $ 3,185,900 | $ 2,687,100 | |||||
Document Period End Date | Dec. 31, 2016 | ||||||
Loss on extinguishment of debt | $ 0 | $ (4,851) | |||||
5.375% Senior Notes due August 15, 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, face value | $ 450,000 | ||||||
Senior Notes, Noncurrent | 1,045,968 | 1,046,851 | $ 350,000 | $ 700,000 | |||
Unamortized Debt Issuance Expense | $ 6,900 | $ 7,300 | |||||
Repayments of Debt | $ 600,000 | ||||||
Loss on extinguishment of debt | $ 18,400 |
Debt and Credit Facilities 6.0% Senior Notes due 2024 (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2016 |
Jun. 21, 2016 |
|
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Long-term Debt | $ 495,000 | $ 664,605 | |||
6.0% Senior Notes due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Notes, Noncurrent | 297,678 | $ 297,601 | $ 300,000 | ||
Proceeds from Issuance of Long-term Debt | $ 297,500 | ||||
Unamortized Debt Issuance Expense | $ 2,300 |
Debt and Credit Facilities 1.0% Convertible Debentures due 2035 (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2016 |
Dec. 07, 2015 |
|
Debt Instrument [Line Items] | ||||
Long-term debt, face value | $ 3,185,900 | $ 2,687,100 | ||
Proceeds from Issuance of Long-term Debt | 495,000 | $ 664,605 | ||
Debt Issuance Costs, Noncurrent, Net | $ 1,423 | $ (1,506) | ||
Convertible Debentures One Percent Due Twenty Thirty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, face value | $ 676,500 | |||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 181,100 | |||
Debt Instrument, Convertible, Conversion Price | $ 27.22 | |||
Debt instrument, stated interest rate | 1.00% | 1.00% | 1.00% | |
Convertible Debt, Noncurrent | $ 495,400 |
Debt and Credit Facilities 2.75% Convertible Debentures due 2031 (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Sep. 30, 2016 |
Dec. 07, 2015 |
Oct. 24, 2011 |
|
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 0 | $ (4,851) | ||||
Long-term debt, face value | 3,185,900 | $ 2,687,100 | ||||
Debt Issuance Costs, Noncurrent, Net | 1,423 | (1,506) | ||||
Convertible Debentures Two Point Seven Five Percent Due November One Twenty Thirty One [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Convertible Debt | 38,300 | $ 256,200 | ||||
Loss on extinguishment of debt | $ 2,400 | |||||
Long-term debt, face value | $ 395,500 | $ 690,000 | ||||
Debt Instrument, Convertible, Conversion Price | $ 32.30 | |||||
Debt Instrument, Unamortized Discount | $ 14,900 | $ 19,200 | ||||
Convertible Debt, Noncurrent | $ 533,600 | |||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 156,400 |
Debt and Credit Facilities 1.5% Convertible Debentures due 2035 (Details) - USD ($) $ / shares in Units, $ in Thousands |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 01, 2015 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Long-term debt, face value | $ 3,185,900 | $ 2,687,100 | |
Debt Issuance Costs, Noncurrent, Net | $ 1,423 | $ (1,506) | |
Convertible Debentures One Point Five Percent Due November One Twenty Thirty Five [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, face value | $ 263,900 | ||
Debt instrument, stated interest rate | 1.50% | 1.50% | 1.50% |
Debt Instrument, Convertible, Conversion Price | $ 23.26 | ||
Debt issuance Percentage of Principal Amount | 97.09% | ||
Debt Instrument, Unamortized Discount (Premium), Net | $ 7,700 | ||
Debt Instrument, Unamortized Discount | $ 49,500 | ||
Convertible Debt, Noncurrent | 208,600 | ||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 55,300 |
Debt and Credit Facilities Credit Facility (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2016 |
Apr. 15, 2016 |
|
Line of Credit Facility [Line Items] | ||||
Debt Issuance Costs, Noncurrent, Net | $ 1,423 | $ (1,506) | ||
Loss on extinguishment of debt | 0 | $ (4,851) | ||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 238,200 | $ 242,500 | ||
Letters of Credit Outstanding, Amount | $ 4,300 | |||
Term Loan Facility Due August Seventh Twenty Ninteen [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Repayments of Debt | $ 472,500 |
Debt and Credit Facilities Applicable Borrowing Rates and Additional Detail (Details) - USD ($) $ in Millions |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 22, 2016 |
Sep. 30, 2016 |
Jun. 21, 2016 |
Dec. 07, 2015 |
Jun. 01, 2015 |
Aug. 14, 2012 |
Oct. 24, 2011 |
|
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Unamortized Discount | $ 0.0 | $ 0.0 | ||||||
5.625% Senior Notes due 2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, stated interest rate | 5.625% | 5.625% | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.625% | |||||||
nuan_DebtInstrumentMaturityYear | 2026 | |||||||
Unamortized Debt Issuance Expense | $ 6.5 | |||||||
6.0% Senior Notes due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, stated interest rate | 6.00% | 6.00% | 6.00% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 6.00% | 6.00% | ||||||
nuan_DebtInstrumentMaturityYear | 2024 | |||||||
Unamortized Debt Issuance Expense | $ 2.3 | |||||||
Debt Instrument, Unamortized Premium | $ 0.0 | $ 0.0 | ||||||
5.375% Senior Notes due August 15, 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, stated interest rate | 5.375% | 5.375% | 5.375% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.28% | 5.28% | ||||||
nuan_DebtInstrumentMaturityYear | 2020 | |||||||
Unamortized Debt Issuance Expense | $ 6.9 | $ 7.3 | ||||||
Debt Instrument, Unamortized Premium | $ (2.8) | $ (3.0) | ||||||
Convertible Debentures Two Point Seven Five Percent Due November One Twenty Thirty One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, stated interest rate | 2.75% | 2.75% | 2.75% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 7.43% | 7.43% | ||||||
nuan_DebtInstrumentMaturityYear | 2031 | |||||||
Unamortized Debt Issuance Expense | $ 0.9 | $ 1.1 | ||||||
Debt Instrument, Unamortized Discount | $ 14.9 | $ 19.2 | ||||||
Convertible Debentures One Point Five Percent Due November One Twenty Thirty Five [Member] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, stated interest rate | 1.50% | 1.50% | 1.50% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.39% | 5.39% | ||||||
nuan_DebtInstrumentMaturityYear | 2035 | |||||||
Unamortized Debt Issuance Expense | $ 1.8 | $ 1.9 | ||||||
Debt Instrument, Unamortized Discount | $ 49.5 | |||||||
Convertible Debentures One Percent Due Twenty Thirty Five [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, stated interest rate | 1.00% | 1.00% | 1.00% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.62% | 5.62% | ||||||
nuan_DebtInstrumentMaturityYear | 2035 | |||||||
Unamortized Debt Issuance Expense | $ 7.9 | $ 8.2 | ||||||
Debt Instrument, Unamortized Discount | $ 158.0 | $ 163.5 | ||||||
Minimum [Member] | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||
Minimum [Member] | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | London Interbank Offered Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Maximum | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||
Maximum | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | London Interbank Offered Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Debt and Credit Facilities Short-term Related Party Note Payable (Details) - USD ($) $ in Thousands |
3 Months Ended | 44 Months Ended | |
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
|
Related Party Transaction [Line Items] | |||
Stock Repurchased During Period, Value | $ 707,500 | ||
Payments for Repurchase of Common Stock | $ 0 | $ 189,580 |
Debt and Credit Facilities 5.625% Senior Notes due December 2026 (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 22, 2016 |
|
Debt Instrument [Line Items] | ||
Document Period End Date | Dec. 31, 2016 | |
5.625% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate | 5.625% | 5.625% |
Proceeds from Issuance of Senior Long-term Debt | $ 495.0 | |
Change of Control [Member] | 5.625% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate Principal Amount of Senior Notes, Redemption Price, Percentage | 101.00% | |
Before December 15, 2021 [Member] | 5.625% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate Principal Amount of Senior Notes, Redemption Price, Percentage | 100.00% | |
Aggregate Principal Amount of Senior Notes, Redemption of Principal Amount, Percentage | 35.00% | |
Before December 15, 2021 [Member] | 5.625% Senior Notes due 2026 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate Principal Amount of Senior Notes, Redemption of Principal Amount, Percentage | 50.00% | |
Asset Sale [Member] | 5.625% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate Principal Amount of Senior Notes, Redemption Price, Percentage | 100.00% | |
At any time and from time to time before December 15, 2021 [Member] | 5.625% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate Principal Amount of Senior Notes, Redemption Price, Percentage | 106.00% |
Stockholders' Equity (Details) - USD ($) $ in Millions |
3 Months Ended | 44 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2016 |
Apr. 29, 2015 |
Apr. 29, 2013 |
|
Stockholders Equity Note [Line Items] | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased, Value | $ 500.0 | $ 500.0 | ||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | $ 292.5 | $ 292.5 | ||
Stock Repurchased and Retired During Period, Shares | 40,700,000 | |||
Stock Repurchased During Period, Value | $ 707.5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 915,779 |
Stockholders' Equity Related Party Share Repurchases (Details) - USD ($) $ in Thousands |
3 Months Ended | 44 Months Ended | |
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
|
Related Party Transaction [Line Items] | |||
Payments for Repurchase of Common Stock | $ 0 | $ 189,580 | |
Stock Repurchased During Period, Value | $ 707,500 |
Net Loss Per Share (Additional Information) (Detail) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive common equivalent shares excluded from computation of diluted net income (loss) per share | 9.9 | 10.0 |
Stock-Based Compensation (Included in Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Document Period End Date | Dec. 31, 2016 | |
Stock based compensation | $ 39,130 | $ 42,348 |
Cost of Professional services and hosting | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | 8,410 | 7,757 |
Cost of product and licensing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | 92 | 122 |
Cost of maintenance and support | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | 977 | 1,068 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | 8,490 | 9,933 |
Selling and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | 11,969 | 12,837 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | $ 9,192 | $ 10,631 |
Stock-Based Compensation (Summary of Stock Options Activity) (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 44 Months Ended | |
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
|
Share-based Compensation [Abstract] | |||
Closing market value of common stock | $ 14.90 | $ 14.90 | |
Stock Repurchased and Retired During Period, Shares | 40,700,000 | ||
Number of Shares | |||
Outstanding at September 30, 2016 | 1,965,826 | ||
Exercised | (915,779) | ||
Outstanding at December 31, 2016 | 1,050,047 | 1,050,047 | |
Exercisable | 1,050,038 | 2,113,030 | 1,050,038 |
Weighted Average Exercise Price | |||
Outstanding at September 30, 2016 | $ 15.01 | ||
Exercised | 13.55 | ||
Outstanding at December 31, 2016 | 16.29 | $ 16.29 | |
Exercisable | $ 16.29 | $ 14.81 | $ 16.29 |
Weighted Average Remaining Contractual Term | |||
Outstanding at December 31, 2016 | 12 months | ||
Exercisable | 12 months | 1 year 5 months | |
Aggregate Intrinsic Value | |||
Outstanding at December 31, 2016 | $ 0.2 | $ 0.2 | |
Exercisable | 0.2 | $ 10.7 | 0.2 |
Intrinsic Value Options Exercised | $ 0.7 | $ 7.6 | |
Stock Repurchased During Period, Value | $ 707.5 |
Stock-Based Compensation (Summary of Activity Relating to Restricted Units) (Detail) $ / shares in Units, $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
$ / shares
shares
| |
Restricted Units, Outstanding [Roll Forward] | |
Closing market value of common stock | $ / shares | $ 14.90 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Purchase price for restricted units, vested | $ / shares | $ 0.001 |
Number of Shares Underlying Restricted Units — Contingent Awards | |
Restricted Units, Outstanding [Roll Forward] | |
Outstanding at September 30, 2016 | shares | 4,459,311 |
Weighted average remaining recognition period of outstanding restricted units | 1 year 9 months |
Unearned stock-based compensation expense of outstanding restricted units | $ 63.5 |
Aggregate intrinsic value of outstanding restricted units(a) | $ 66.4 |
Number of Shares Underlying Restricted Units — Time-Based Awards | |
Restricted Units, Outstanding [Roll Forward] | |
Outstanding at September 30, 2016 | shares | 6,626,838 |
Weighted average remaining recognition period of outstanding restricted units | 1 year 9 months |
Unearned stock-based compensation expense of outstanding restricted units | $ 73.4 |
Aggregate intrinsic value of outstanding restricted units(a) | $ 98.8 |
Stock-Based Compensation (Summary of Weighted-Average Grant-Date Fair Value and Intrinsic Value of Restricted Units Vested) (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Document Period End Date | Dec. 31, 2016 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant-date fair value per share | $ 15.90 | $ 20.40 |
Total intrinsic value of shares vested (in millions) | $ 88.3 | $ 115.6 |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of shares vested (in millions) | $ 4.3 |
Stock-Based Compensation Stock-Based Compensation (Restricted Stock Awards) (Details) - Restricted Stock Awards - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at September 30, 2016 | 0 | ||
Outstanding at December 31, 2016 | 250,000 | ||
Weighted Average Grant Date Fair Value, Outstanding | $ 15.55 | $ 0.00 | |
Total Intrinsic Value of shares vested | $ 4.3 | ||
Weighted average remaining recognition period of outstanding restricted units | 9 months | ||
Unearned stock-based compensation expense of outstanding restricted units | $ 3.3 | ||
Aggregate intrinsic value of outstanding restricted units(a) | $ 3.7 |
Income Taxes (Loss) income before income taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (47,583) | $ (29,002) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 34,007 | 24,704 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $ (13,576) | $ (4,298) |
Income Taxes (Components of Benefit from Income Taxes) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||
Domestic Tax Expense (Benefit) | $ 4,159 | $ 4,537 |
Foreign | 6,194 | 3,230 |
Provision for income taxes | $ 10,353 | $ 7,767 |
Effective tax rate | (76.30%) | (180.70%) |
Income Taxes (Additional Information) (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
|
Business Acquisition [Line Items] | ||
Unrecognized Tax Benefits | $ 28,000,000 | $ 27,300,000 |
U.S. federal statutory income tax rate | 35.00% | |
Unrecognized Tax Benefits Expected To Be Resolved With In A Year | $ 0 |
Income Taxes Deferred Tax Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Taxes [Line Items] | ||
Provision for income taxes | $ 10,353 | $ 7,767 |
Income Taxes Related Party Transactions (Details) $ in Millions |
44 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Related Party Transaction [Line Items] | |
Stock Repurchased During Period, Value | $ 707.5 |
Commitments and Contingencies (Details) |
3 Months Ended |
---|---|
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Indemnification term for former officers and directors | 6 years |
Segment and Geographic Information and Significant Customers (Additional Information) (Detail) |
3 Months Ended |
---|---|
Dec. 31, 2016
Segment
| |
Segment Reporting [Abstract] | |
Number of reportable business segments | 4 |
Segment and Geographic Information and Significant Customers (Segment Results Along with Reconciliation of Segment Profit to Income Before Income Taxes) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Segment Reporting Information [Line Items] | ||
Segment Revenues | $ 496,019 | $ 494,870 |
Revenues | 487,658 | 486,115 |
Segment profit | 161,612 | 168,189 |
Corporate expenses and other, net | (30,959) | (30,720) |
Acquisition-related revenues and cost of revenues adjustments | (8,361) | (8,589) |
Stock-based compensation | (39,130) | (42,348) |
Amortization of intangible assets | (43,401) | (42,664) |
Acquisition-related costs, net | (9,026) | (2,480) |
Restructuring and other charges, net | (6,703) | (7,888) |
Costs associated with IP collaboration agreements | 0 | (2,000) |
Other expense, net | (37,608) | (35,798) |
Loss before income taxes | (13,576) | (4,298) |
Healthcare | ||
Segment Reporting Information [Line Items] | ||
Segment Revenues | 239,208 | 248,084 |
Segment profit | 78,567 | 81,229 |
Restructuring and other charges, net | (2,261) | (701) |
Mobile | ||
Segment Reporting Information [Line Items] | ||
Segment Revenues | 91,784 | 96,403 |
Segment profit | 33,471 | 33,764 |
Restructuring and other charges, net | (213) | (2,784) |
Enterprise | ||
Segment Reporting Information [Line Items] | ||
Segment Revenues | 112,938 | 88,776 |
Segment profit | 31,958 | 26,211 |
Restructuring and other charges, net | (1,031) | (1,104) |
Imaging | ||
Segment Reporting Information [Line Items] | ||
Segment Revenues | 52,089 | 61,607 |
Segment profit | 17,616 | 26,985 |
Restructuring and other charges, net | (712) | (213) |
Less: acquisition-related revenues adjustments | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 8,361 | $ 8,755 |
Segment and Geographic Information and Significant Customers (Classification of Revenue by Major Geographic Areas) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Segment Revenues | $ 496,019 | $ 494,870 |
Total revenues | 487,658 | 486,115 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Segment Revenues | 349,170 | 355,814 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Segment Revenues | $ 138,488 | $ 130,301 |
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