0001280058-20-000011 | 10-K | XBRL Viewer

(in thousands)

December 31,
2019

December 31,
2018

Total deferred revenue

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Document and Entity Information Document - USD ($)	12 Months Ended
Document and Entity Information Document - USD ($)	Dec. 31, 2019	Feb. 05, 2020	Jun. 30, 2019
Cover page. [Abstract]
Document type	10-K
Document annual report	true
Document period end date	Dec. 31, 2019
Document transition report	false
Entity file number	000-50600
Entity registrant name	Blackbaud, Inc.
Entity incorporation, state or country code	DE
Entity tax identification number	11-2617163
Entity address, address line one	65 Fairchild Street
Entity address, city or town	Charleston
Entity address, state or province	SC
Entity address, postal zip code	29492
City area code	843
Local phone number	216-6200
Title of 12(b) security	Common Stock, $0.001 Par Value
Trading symbol	BLKB
Security exchange name	NASDAQ
Entity well-known seasoned issuer	Yes
Entity voluntary filers	No
Entity current reporting status	Yes
Entity interactive data current	Yes
Entity filer category	Large Accelerated Filer
Entity small business	false
Entity emerging growth company	false
Entity shell company	false
Entity public float			$ 3,578,045,224
Entity common stock, shares outstanding		49,142,338
Documents incorporated by reference	Portions of the registrant's definitive Proxy Statement for the 2020 Annual Meeting of Stockholders currently scheduled to be held June 10, 2020 are incorporated by reference into Part III hereof. Such definitive Proxy Statement will be filed with the Securities and Exchange Commission no later than 120 days after the conclusion of the registrant's fiscal year ended December 31, 2019.
Amendment flag	false
Document fiscal year focus	2019
Document fiscal period focus	FY
Entity central index key	0001280058
Current fiscal year end date	--12-31

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 31,810	$ 30,866
Restricted cash due to customers	545,485	418,980
Accounts receivable, net of allowance of $5,529 and $4,722 at December 31, 2019 and December 31, 2018, respectively	88,868	86,595
Customer funds receivable	524	1,753
Prepaid expenses and other current assets	67,852	59,788
Total current assets	734,539	597,982
Property and equipment, net	35,546	40,031
Operating lease right-of-use assets	104,400	0
Software development costs, net	101,302	75,099
Goodwill	634,088	545,213
Intangible assets, net	317,895	291,617
Other assets	65,193	65,363
Total assets	1,992,963	1,615,305
Current liabilities:
Trade accounts payable	47,676	34,538
Accrued expenses and other current liabilities	73,317	46,893
Due to customers	546,009	420,733
Debt, current portion	7,500	7,500
Deferred revenue, current portion	314,335	295,991
Total current liabilities	988,837	805,655
Debt, net of current portion	459,600	379,624
Deferred tax liability	44,594	44,291
Deferred revenue, net of current portion	1,802	2,564
Operating lease liabilities, net of current portion	95,624	0
Other liabilities	5,742	9,388
Total liabilities	1,596,199	1,241,522
Commitments and contingencies (see Note 11)
Stockholders' equity:
Preferred stock; 20,000,000 shares authorized, none outstanding	0	0
Common stock, $0.001 par value; 180,000,000 shares authorized, 60,206,091 and 59,327,633 shares issued at December 31, 2019 and December 31, 2018, respectively	60	59
Additional paid-in capital	457,804	399,241
Treasury stock, at cost; 11,066,354 and 10,760,574 shares at December 31, 2019 and December 31, 2018, respectively	(290,665)	(266,884)
Accumulated other comprehensive loss	(5,290)	(5,110)
Retained earnings	234,855	246,477
Total stockholders' equity	396,764	373,783
Total liabilities and stockholders' equity	$ 1,992,963	$ 1,615,305

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 5,529	$ 4,722
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	180,000,000	180,000,000
Common stock, shares issued	60,206,091	59,327,633
Treasury stock, shares	11,066,354	10,760,574

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue
Revenue	$ 900,423	$ 848,606	$ 788,487
Cost of revenue
Cost of revenue	418,424	381,742	361,904
Gross profit	481,999	466,864	426,583
Operating expenses
Sales, marketing and customer success	224,152	192,848	169,559
Research and development	106,164	98,811	89,911
General and administrative	113,414	106,354	94,870
Amortization	5,316	4,844	3,271
Restructuring	5,808	4,590	794
Total operating expenses	454,854	407,447	358,405
Income from operations	27,145	59,417	68,178
Interest expense	(20,618)	(15,898)	(12,097)
Other income, net	4,058	1,103	2,260
Income before provision for income taxes	10,585	44,622	58,341
Income tax benefit	(1,323)	(219)	(15,292)
Net income	$ 11,908	$ 44,841	$ 73,633
Earnings per share
Basic earnings per share	$ 0.25	$ 0.95	$ 1.58
Diluted earnings per share	$ 0.25	$ 0.93	$ 1.54
Common shares and equivalents outstanding
Basic weighted average shares	47,695,383	47,206,669	46,669,440
Diluted weighted average shares	48,312,271	48,045,084	47,775,702
Other comprehensive loss
Foreign currency translation adjustment	$ 2,641	$ (5,218)	$ (789)
Unrealized (loss) gain on derivative instruments, net of tax	(2,821)	583	751
Total other comprehensive loss	(180)	(4,635)	(38)
Comprehensive income	11,728	40,206	73,595
Recurring [Member]
Revenue
Revenue	831,609	762,181	684,583
Cost of revenue
Cost of revenue	357,988	305,481	277,639
One-time services and other [Member]
Revenue
Revenue	68,814	86,425	103,904
Cost of revenue
Cost of revenue	$ 60,436	$ 76,261	$ 84,265

Consolidated Statements of Cash Flows $ in Thousands	12 Months Ended
Consolidated Statements of Cash Flows $ in Thousands	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Cash flows from operating activities
Net income	$ 11,908	$ 44,841	$ 73,633
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	85,693	79,566	73,948
Provision for doubtful accounts and sales returns	8,725	6,890	11,686
Stock-based compensation expense	58,633	48,274	40,631
Deferred taxes	(3,600)	(619)	(17,814)
Amortization of deferred financing costs and discount	752	752	838
Other non-cash adjustments	4,906	(1,912)	504
Changes in operating assets and liabilities, net of acquisition and disposal of businesses:
Accounts receivable	(6,569)	2,166	(15,821)
Prepaid expenses and other assets	6,383	(5,217)	(9,550)
Trade accounts payable	12,900	9,487	1,024
Accrued expenses and other liabilities	(9,718)	(2,027)	(4,973)
Deferred revenue	12,464	19,184	22,184
Net cash provided by operating activities	182,477	201,385	176,290
Cash flows from investing activities
Purchase of property and equipment	(11,492)	(14,719)	(10,208)
Capitalized software development costs	(46,874)	(37,629)	(28,345)
Purchase of net assets of acquired companies, net of cash and restricted cash acquired	(109,353)	(44,943)	(146,789)
Purchase of derivative instruments	0	0	(568)
Proceeds from settlement of derivative instruments	0	0	1,030
Other investing activities	500	(500)	0
Net cash used in investing activities	(167,219)	(97,791)	(184,880)
Cash flows from financing activities
Proceeds from issuance of debt	424,000	270,900	774,500
Payments on debt	(344,500)	(322,476)	(679,119)
Debt issuance costs	0	0	(3,085)
Employee taxes paid for withheld shares upon equity award settlement	(23,781)	(27,685)	(23,962)
Proceeds from exercise of stock options	7	11	15
Change in due to customers	77,793	(188,502)	226,717
Change in customer funds receivable	1,301	(844)	6,644
Dividend payments to stockholders	(23,607)	(23,312)	(23,069)
Net cash provided by (used in) financing activities	111,213	(291,908)	278,641
Effect of exchange rate on cash, cash equivalents and restricted cash	978	(2,014)	(550)
Net increase (decrease) in cash, cash equivalents and restricted cash	127,449	(190,328)	269,501
Cash, cash equivalents and restricted cash, beginning of year	449,846	640,174	370,673
Cash, cash equivalents and restricted cash, end of year	577,295	449,846	640,174
Cash (paid) received during the year for:
Interest	(19,926)	(15,261)	(10,614)
Taxes, net of refunds	(383)	7,138	(5,613)
Non-cash investing and financing activities:
Purchase of equipment and other assets included in accounts payable	(794)	(882)	(1,546)
Acquired restricted cash liabilities due to customers	46,838	0	$ 31,644
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	31,810	30,866
Restricted cash due to customers	545,485	418,980
Total cash, cash equivalents and restricted cash in the statement of cash flows	$ 577,295	$ 449,846

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common stock [Member]	Additional paid-in capital [Member]	Treasury stock [Member]	Accumulated other comprehensive loss [Member]	Retained earnings [Member]
Balance (in shares) at Dec. 31, 2016		57,672,401
Balance at Dec. 31, 2016	$ 269,078	$ 58	$ 310,452	$ (215,237)	$ (604)	$ 174,409
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	73,633					73,633
Payment of dividends	(23,069)					(23,069)
Exercise of stock options and stock appreciation rights and vesting of restricted stock units (in shares)		390,291
Exercise of stock options and stock appreciation rights and vesting of restricted stock units	15		15
Employee taxes paid for withheld shares upon equity award settlement	(23,962)			(23,962)
Stock-based compensation	40,631		40,575			56
Restricted stock grants (in shares)		570,208
Restricted stock grants	1	$ 1
Restricted stock cancellations (in shares)		(81,139)
Other comprehensive income	(38)				(38)
Balance (in shares) at Dec. 31, 2017		58,551,761
Balance at Dec. 31, 2017	336,289	$ 59	351,042	(239,199)	(642)	225,029
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	44,841					44,841
Payment of dividends	(23,312)					(23,312)
Exercise of stock options and stock appreciation rights and vesting of restricted stock units (in shares)		349,248
Exercise of stock options and stock appreciation rights and vesting of restricted stock units	11		11
Employee taxes paid for withheld shares upon equity award settlement	(27,685)			(27,685)
Stock-based compensation	48,274		48,188			86
Restricted stock grants (in shares)		541,786
Restricted stock grants	0	$ 0
Restricted stock cancellations (in shares)		(115,162)
Other comprehensive income	(4,635)				(4,635)
Reclassification upon early adoption of ASU 2018-02	0				167	(167)
Balance (in shares) at Dec. 31, 2018		59,327,633
Balance at Dec. 31, 2018	373,783	$ 59	399,241	(266,884)	(5,110)	246,477
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,908					11,908
Payment of dividends	(23,607)					(23,607)
Exercise of stock options and stock appreciation rights and vesting of restricted stock units (in shares)		267,455
Exercise of stock options and stock appreciation rights and vesting of restricted stock units	7		7
Employee taxes paid for withheld shares upon equity award settlement	(23,781)			(23,781)
Stock-based compensation	58,633		58,556			77
Restricted stock grants (in shares)		723,868
Restricted stock grants	1	$ 1
Restricted stock cancellations (in shares)		(112,865)
Other comprehensive income	(180)				(180)
Balance (in shares) at Dec. 31, 2019		60,206,091
Balance at Dec. 31, 2019	$ 396,764	$ 60	$ 457,804	$ (290,665)	$ (5,290)	$ 234,855

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Employee taxes paid for withheld shares upon equity award settlement (in shares)	305,780	284,780	308,993
Dividends per share (in dollars per share)	$ 0.48	$ 0.48	$ 0.48

Organization

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

1. Organization

We are the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—we connect and empower organizations and individuals to increase their impact through cloud software, services, expertise and data intelligence. Our portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing and analytics. Serving the industry for more than three decades, we are headquartered in Charleston, South Carolina and have operations in the United States, Australia, Canada, Costa Rica and the United Kingdom. As of December 31, 2019, we had over 45,000 global customers.

Basis of Presentation

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

2. Basis of Presentation

Basis of presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).

Basis of consolidation

The consolidated financial statements include the accounts of Blackbaud, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we reconsider and evaluate our estimates and assumptions, including those that impact revenue recognition, long-lived and intangible assets , income taxes, business combinations, stock-based compensation, capitalization of software development costs, our allowances for sales returns and doubtful accounts, costs of obtaining contracts, valuation of derivative instruments and loss contingencies, among others. Changes in the facts or circumstances underlying these estimates could result in material changes and actual results could materially differ from these estimates.

Recently adopted accounting pronouncements

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires lessees to record most leases on their balance sheet but recognize expenses in the income statement in a manner similar to previous guidance. The way in which entities classify leases determines how to recognize lease-related revenue and expense.

We adopted ASU 2016-02 as of January 1, 2019 using the transition method that allowed us to initially apply the guidance at the adoption date of January 1, 2019 without adjusting comparative periods presented. We elected to use the package of practical expedients that allowed us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any existing leases. We did not elect to use the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment. Additionally, we elected not to apply the recognition requirements of the new lease accounting standard to short-term leases. Adopting ASU 2016-02 had a material impact on our consolidated balance sheet as of January 1, 2019, as we recognized $121.6 million of lease liabilities and $113.4 million of right-of-use ("ROU") assets for those leases classified as operating leases.

Recently issued accounting pronouncements

There are no recently issued accounting pronouncements that are expected to have a material impact on our financial position or results of operations when adopted in the future.

Summary of significant accounting policies

Revenue recognition

Our revenue is primarily generated from the following sources: (i) charging for the use of our software solutions in cloud and hosted environments; (ii) providing payment and transaction services; (iii) providing software maintenance and support services; and (iv) providing professional services, including implementation, consulting, training, analytic and other services. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services.

We determine revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer;

•Identification of the performance obligations in the contract;

•Determination of the transaction price;

•Allocation of the transaction price to the performance obligations in the contract; and

•Recognition of revenue when, or as, we satisfy a performance obligation.

Recurring

Recurring revenue represents stand-ready performance obligations in which we are making our solutions or services available to our customers continuously over time or the value of the contract renews. Therefore, recurring revenue is generally recognized over time on a ratable basis over the contract term, beginning on the date that the solution or service is made available to the customer. Our recurring revenue contracts are generally for a term of 3 years at contract inception with 1 to 3-year renewals thereafter, billed annually in advance and non-cancelable.

Recurring revenue is comprised of fees for the use of our subscription-based software solutions, which includes providing access to cloud solutions, hosting services, online training programs, subscription-based analytic services, such as donor acquisitions and data enrichment, and payment services. Recurring revenue also includes fees from maintenance services for our on-premises solutions, services included in our renewable subscription contracts, subscription-based contracts for professional services and variable transaction revenue associated with the use of our solutions.

Our payment services are offered with the assistance of third-party vendors. In general, when we are the principal in a transaction based on the factors identified in ASC 606-10-55-36 through 55-40, we record the revenue and related costs on a gross basis. Otherwise, we net the cost of revenue associated with the service against the gross revenue (amount billed to the customer) and record the net amount as revenue. For payment and transaction services, we have the right to invoice the customer in an amount that directly corresponds with the value to the customer of our performance to date. Therefore, we recognize revenue for these services over time based on the amount billable to the customer in accordance with the 'as invoiced' practical expedient in ASC 606-10-55-18.

One-time services and other

One-time services and other revenue primarily consists of fees for one-time consulting, analytic and onsite training services.

We generally bill consulting services based on hourly rates plus reimbursable travel-related expenses. Fixed price consulting engagements are generally billed as milestones towards completion are reached. Revenue for all consulting services is recognized over time as the services are performed.

We generally recognize analytic services revenue from donor prospect research engagements, the sale of lists of potential donors, data enrichment engagements and benchmarking studies at a point in time (upon delivery).

In certain cases, we sell training at a fixed rate for each specific class at a per attendee price or at a packaged price for several attendees, and recognize the related revenue upon the customer attending and completing training.

Contracts with multiple performance obligations

Some of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of our solutions and services are typically estimated based on observable transactions when the solutions or services are sold on a standalone basis.

Costs of obtaining contracts, contract assets and deferred revenue

We pay sales commissions at the time contracts with customers are signed or shortly thereafter, depending on the size and duration of the sales contract. Sales commissions and related fringe benefits earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized in a manner that aligns with the expected period of benefit, which we have determined to be 5 years. We determined the period of benefit by taking into consideration our customer contracts, including renewals, retention, our technology and other factors. We do not generally pay commissions for contract renewals. The related amortization expense is included in sales, marketing and customer success expense in our consolidated statements of comprehensive income.

A contract asset is recorded when revenue is recognized in advance of our right to receive consideration (i.e., we must satisfy additional performance obligations in order to receive consideration). Amounts are recorded as receivables when our right to consideration is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Our contract assets are recorded within prepaid expenses and other current assets on our consolidated balance sheets. To the extent that our customers are billed for our solutions and services in advance of us satisfying the related performance obligations, we record such amounts in deferred revenue.

Fair value measurements

We measure certain financial assets and liabilities at fair value on a recurring basis, including derivative instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. An active market is defined as a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. We use a three-tier fair value hierarchy to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:


•	Level 1 - Quoted prices for identical assets or liabilities in active markets;


•	Level 2 - Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and


•	Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable.

Our financial assets and liabilities are classified in their entirety within the hierarchy based on the lowest level of input that is significant to fair value measurement. Changes to a financial asset's or liability's level within the fair value hierarchy are determined as of the end of a reporting period. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

Derivative instruments

We generally use derivative instruments to manage interest rate risk. We view derivative instruments as risk management tools and do not use them for trading or speculative purposes. Our policy requires that derivatives used for hedging purposes be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accordingly, changes in fair value of the derivative contract must be highly correlated with changes in the fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract.

We record all derivative instruments on our consolidated balance sheets at fair value. If the derivative is designated as a cash flow hedge, the effective portions of the changes in fair value of the derivative are recorded in other comprehensive income and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. Ineffective portions of the changes in the fair value of cash flow hedges are recognized currently in earnings. See Note 10 of these consolidated financial statements for further discussion of our derivative instruments.

Sales taxes

We present sales taxes and other taxes collected from customers and remitted to governmental authorities on a net basis and, as such, exclude them from revenues.

Cash and cash equivalents

We consider all highly liquid investments purchased with an original maturity of three months or less and cash items in transit to be cash equivalents.

Restricted cash due to customers; Customer funds receivable; Due to customers

Restricted cash due to customers consists of monies collected by us and payable to our customers, net of the associated transaction fees earned. Monies associated with amounts due to customers are segregated in separate bank accounts and used exclusively for the payment of amounts due to customers. This usage restriction is either legally or internally imposed and reflects our intention with regard to such deposits. Customer funds receivable consists of monies we expect to collect and remit to our customers.

Concentration of credit risk

Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents, restricted cash due to customers and accounts receivable. Our cash and cash equivalents and restricted cash due to customers are placed with high credit-quality financial institutions. Our accounts receivable is derived from sales to customers who primarily operate in the nonprofit sector. With respect to accounts receivable, we perform ongoing evaluations of our customers and maintain an allowance for doubtful accounts based on historical experience and our expectations of future credit losses. As of and for the years ended December 31, 2019, 2018 and 2017, there were no significant concentrations with respect to our consolidated revenues or accounts receivable.

Property and equipment

We record property and equipment assets at cost and depreciate them over their estimated useful lives using the straight-line method. Leasehold improvements are depreciated over the lesser of the term of the lease or the estimated useful life of the asset. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to earnings. Repair and maintenance costs are expensed as incurred.

Construction-in-progress primarily related to purchases of facilities and information technology assets which had not been placed in service at the respective balance sheet dates. We transfer these assets to the applicable property and equipment category on the date they are placed in service. There was no capitalized interest applicable to construction-in-progress for the years ended December 31, 2019, 2018 and 2017.

Business combinations

We include the operating results of acquired companies as well as the net assets acquired and liabilities assumed in our consolidated financial statements from the date of acquisition. We are required to allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed at the acquisition date based upon their estimated fair values. Goodwill as of the acquisition date represents the excess of the purchase consideration of an acquired business over the fair value of the underlying net tangible and intangible assets acquired and liabilities assumed. This allocation and valuation require management to make significant estimates and assumptions, especially with respect to long-lived and intangible assets.

Critical estimates in valuing intangible assets include, but are not limited to, estimates about: expected future cash flows from customers, including revenue and operating expenses; royalty and customer attrition rates; proprietary technology obsolescence curve; the acquired company's brand awareness and market position, the market awareness of the acquired company's branded technology solutions and services; assumptions about the period of time the brand will continue to be valuable; as well as expected costs to develop any in-process research and development into commercially viable solutions and estimated cash flows from the projects when completed, and discount rates. Our estimates of fair value are based upon assumptions we believe to be reasonable, but which are inherently uncertain and unpredictable, and unanticipated events and changes in circumstances may occur.

Goodwill

Goodwill represents the purchase price in excess of the net amount assigned to assets acquired and liabilities assumed by us in a business combination. Goodwill is not amortized, but tested annually for impairment on the first day of our fourth quarter, or more frequently if indicators of potential impairment arise.

Accounting guidance permits entities to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis to determine whether it is necessary to perform the quantitative impairment test. Significant judgment is required in the assessment of qualitative factors, including but not limited to an evaluation of macroeconomic conditions as they relate to our business, industry and market trends, as well as the overall future financial performance of identified reporting units and future opportunities in the markets in which we operate.

The quantitative impairment test compares the fair values of identified reporting units with their respective carrying amounts. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Based on our current internal reporting structure, we currently have one operating segment, one reportable segment, and one reporting unit. In each of 2019, 2018 and 2017, we performed the quantitative impairment test which indicated that the estimated fair values of the identified reporting units significantly exceeded their respective carrying values. There was no impairment of goodwill during 2019, 2018 or 2017.

Intangible assets other than goodwill

We amortize finite-lived intangible assets over their estimated useful lives as follows.



	Basis of amortization	Amortization period (in years)
Customer relationships	Straight-line and accelerated⁽¹⁾	8-17
Marketing assets	Straight-line	2-15
Acquired software and technology	Straight-line and accelerated⁽¹⁾	5-14
Non-compete agreements	Straight-line	1-5


(1)	Certain of the customer relationships and acquired software and technology assets are amortized on an accelerated basis.

We write off the gross carrying amount and accumulated amortization balances for all fully amortized intangible assets. We evaluate the estimated useful lives and the potential for impairment of finite and indefinite-lived intangible assets on an annual basis or more frequently if events or circumstances indicate revised estimates of useful lives may be appropriate or that the carrying amount may be impaired. If the carrying amount of a finite-lived intangible asset is no longer recoverable based upon the undiscounted cash flows of the asset, the amount of impairment is the difference between the carrying amount and the fair value of the asset. Substantially all of our intangible assets were acquired in business combinations. See Note 6 to these consolidated financial statements for a discussion of our impairment of certain acquired intangible assets during 2019. There was no impairment of acquired intangible assets during 2018 or 2017.

Impairment of long-lived assets

We review long-lived assets for impairment when events change or circumstances indicate the carrying amount may not be recoverable. Events or changes in circumstances that indicate the carrying amount may not be recoverable include, but are not limited to, a significant decrease in the market value of the business or asset acquired, a significant adverse change in the extent or manner in which the business or asset acquired is used or significant adverse change in the business climate. If such events or changes in circumstances are present, the undiscounted cash flow method is used to determine whether the asset is impaired. See Note 6 to these consolidated financial statements for a discussion of our impairment of certain long-lived assets during 2019. No impairment of long-lived assets occurred in 2018 or 2017.

Deferred financing costs

Deferred financing costs included in other assets represent the direct third-party costs of entering into the revolving (line-of-credit) portion of our credit facility in June 2017 and portions of the unamortized deferred financing costs from prior facilities. These costs are amortized ratably over the term of the credit facility as interest expense.

Stock-based compensation

We measure stock-based compensation cost at the grant date based on the fair value of the award and recognize it as expense over the requisite service period, which is the vesting period. We determine the fair value of stock options and stock appreciation rights using a Black-Scholes option pricing model, which requires us to use significant judgment to make estimates regarding the life of the award, volatility of our stock price, the risk-free interest rate and the dividend yield of our stock over the life of the award. We determine the fair value of awards that contain market conditions using a Monte Carlo simulation model. Changes to these estimates would result in different fair values of awards.

We recognize the effect of awards for which the requisite service period is not rendered when the award is forfeited (that is, we recognize the effect of forfeitures in compensation cost when they occur). Previously recognized compensation cost for an award is reversed in the period that the award is forfeited. Income tax benefits resulting from the vesting and exercise of stock-based compensation awards are recognized in the period the unit or award is vested or option or right is exercised.

Income taxes

We make estimates and judgments in accounting for income taxes. The calculation of the income tax provision requires estimates due to transactions, credits and calculations where the ultimate tax determination is uncertain. Uncertainties arise as a consequence of the actual source of taxable income between domestic and foreign locations, the outcome of tax audits and the ultimate utilization of tax credits. To the extent actual results differ from estimated amounts recorded, such differences will impact the income tax provision in the period in which the determination is made.

We make estimates in determining tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. We record valuation allowances to reduce our deferred tax assets to the amount expected to be realized. In assessing the adequacy of a recorded valuation allowance significant judgment is required. We consider all positive and negative evidence and a variety of factors including the scheduled reversal of deferred tax liabilities, historical and projected future taxable income, and prudent and feasible tax planning strategies. If we determine there is less than a 50% likelihood that we will be able to use a deferred tax asset in the future in excess of its net carrying value, then an adjustment to the deferred tax asset valuation allowance is made to increase income tax expense, thereby reducing net income in the period such determination was made.

We measure and recognize uncertain tax positions. To recognize such positions, we must first determine if it is more likely than not that the position will be sustained upon audit. We must then measure the benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. Significant judgment is required in the identification and measurement of uncertain tax positions.

Foreign currency

Net assets recorded in a foreign currency are translated at the exchange rate on the balance sheet date. Revenue and expense items are translated using an average of monthly exchange rates. The resulting translation adjustments are recorded in accumulated other comprehensive income.

Gains and losses resulting from foreign currency transactions denominated in currency other than the functional currency are recorded at the approximate rate of exchange at the transaction date in other income, net. For the year ended December 31, 2019, we recorded a net foreign currency loss that was insignificant. For the year ended December 31, 2018, we recorded a net foreign currency loss of $0.9 million. For the year ended December 31, 2017, we recorded net foreign currency gain of $1.1 million.

Research and development

Research and development costs are expensed as incurred except as noted below under Software development costs. These costs include compensation costs for engineering and product management personnel, third-party contractor expenses, software development tools and other expenses related to researching and developing new solutions, upgrading and enhancing existing solutions, and allocated depreciation, facilities and IT support costs.

Software development costs

We incur certain costs associated with the development of internal-use software, which are primarily related to activities performed to develop our cloud solutions. Internal and external costs incurred in the preliminary project stage of internal-use software development are expensed as incurred. Once the software being developed has reached the application development stage, qualifying internal costs including payroll and payroll-related costs of employees who are directly associated with and devote time to the software project as well as external direct costs of materials and services are capitalized. Capitalization ceases at the point at which the developed software is substantially complete and ready for its intended use, which is typically upon completion of all substantial testing. Qualifying costs capitalized during the application development stage include those related to specific upgrades and enhancements when it is probable that those costs incurred will result in additional functionality. Overhead costs, including general and administrative costs, as well as maintenance, training and all other costs associated with post-implementation stage activities are expensed as incurred. In addition, internal costs that cannot be reasonably separated between maintenance and relatively minor upgrades and enhancements are expensed as incurred.

Qualifying capitalized software development costs are amortized on a straight-line basis over the software asset's estimated useful life, which is generally 3 to 7 years. We evaluate the useful lives of these assets on an annual basis and test for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were no impairment charges related to capitalized software development costs during the years ended December 31, 2019, 2018, and 2017. We write off the gross carrying amount and accumulated amortization balances for all fully amortized software development cost assets.

Sales returns and allowance for doubtful accounts

We maintain a reserve for returns and credits which is estimated based on several factors including historical experience, known credits yet to be issued, the aging of customer accounts and the nature of service level commitments. A considerable amount of judgment is required in assessing these factors. Provisions for sales returns and credits are charged against the related revenue items.

Accounts receivable are recorded at original invoice amounts less an allowance for doubtful accounts, an amount we estimate to be sufficient to provide adequate protection against losses resulting from extending credit to our customers. In judging the adequacy of the allowance for doubtful accounts, we consider multiple factors including historical bad debt experience, the general economic environment and the aging of our receivables. A considerable amount of judgment is required in assessing these factors and if any receivables were to deteriorate, an additional provision for doubtful accounts could be required. Accounts are written off after all means of collection are exhausted and recovery is considered remote. Provisions for doubtful accounts are recorded in general and administrative expense.

Below is a summary of the changes in our allowance for sales returns.



Years ended December 31, (in thousands)	Balance at beginning of year		Provision/ adjustment		Write-off			Balance at end of year
2019	$	3,377	$	6,232	$	(5,963	)	$	3,646
2018	4,400		4,952		(5,975		)	3,377
2017	2,704		10,511		(8,815		)	4,400

Below is a summary of the changes in our allowance for doubtful accounts.



Years ended December 31, (in thousands)	Balance at beginning of year		Provision/ adjustment		Write-off			Balance at end of year
2019	$	1,345	$	2,476	$	(1,938	)	$	1,883
2018	741		2,446		(1,842		)	1,345
2017	587		1,148		(994		)	741

Advertising costs

We expense advertising costs as incurred, which were $3.1 million, $4.0 million and $2.4 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Restructuring costs

Restructuring costs include charges for the costs of exit or disposal activities. The liability for costs associated with exit or disposal activities is measured initially at fair value and only recognized when the liability is incurred. For details of our restructuring activities, see Note 19 of these consolidated financial statements.

Leases

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets, accrued expense and other current liabilities, and operating lease liabilities, net of current portion in our consolidated balance sheet as of December 31, 2019.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate in determining the present value of lease payments. Our incremental borrowing rate is based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any initial direct costs and lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments related to our operating leases is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. We do not recognize short-term leases (those that, at the commencement date, have a lease term of 12 months or less) on our consolidated balance sheets. Variable lease payments, which are primarily comprised of common-area maintenance, utilities and real estate taxes that are passed on from the lessor in proportion to the space leased by us, are recognized in operating expenses in the period in which the obligation for those payments is incurred.

Contingencies

We are subject to the possibility of various loss contingencies in the normal course of business. We record an accrual for a contingency when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Often these issues are subject to substantial uncertainties and, therefore, the probability of loss and the estimation of damages are difficult to ascertain. These assessments can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions that have been deemed reasonable by us. Although we believe we have substantial defenses in these matters, we could incur judgments or enter into settlements of claims that could have a material adverse effect on our consolidated financial position, results of operations or cash flows in any particular period.

Earnings per share

We compute basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares and dilutive potential common shares outstanding during the period. Diluted earnings per share reflect the assumed exercise, settlement and vesting of all dilutive securities using the “treasury stock method” except when the effect is anti-dilutive. Potentially dilutive securities consist of shares issuable upon the exercise of stock options and stock appreciation rights and vesting of restricted stock awards and units.

Business Combinations

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Business Combinations

3. Business Combinations

2019 Acquisitions

YourCause

On January 2, 2019, we acquired all of the outstanding equity securities, including all voting equity interests, of YourCause Holdings, LLC, a Delaware limited liability company ("YourCause"), pursuant to a purchase agreement and plan of merger. The acquisition expands our footprint in corporate social responsibility and employee engagement and enhances our position as a leader in providing solutions to both nonprofit organizations and for-profit companies committed to addressing social issues. We acquired the equity securities for an aggregate purchase price of $157.7 million in cash, net of closing adjustments. The purchase price and related expenses were funded primarily through borrowings under the 2017 Credit Facility (as defined below). As a result of the acquisition, YourCause has become a wholly owned subsidiary of ours. The operating results of YourCause have been included in our consolidated financial statements from the date of acquisition. During the year ended December 31, 2019, we incurred insignificant acquisition-related expenses associated with the acquisition, which were recorded in general and administrative expense.

The fair values assigned to the assets acquired and liabilities assumed in the table below are based on our best estimates and assumptions as of the reporting date. We finalized the purchase price allocation of YourCause, including the valuation of assets acquired and liabilities assumed, during the fourth quarter of 2019.



(in thousands)	Purchase price allocation
Net working capital, excluding deferred revenue	$	3,711
Other long-term assets	2,574
Identifiable intangible assets	74,690
Deferred tax liability	(4,660		)
Deferred revenue	(4,300		)
Other long-term liabilities	(1,650		)
Goodwill	87,350
Total purchase price	$	157,715

The estimated fair value of accounts receivable acquired approximates the contractual value of $4.2 million and $54.6 million of the goodwill arising in the acquisition is deductible for income tax purposes. The estimated goodwill recognized is attributable primarily to the opportunities for expected synergies from combining the operations and assembled workforce of YourCause. During the year ended December 31, 2019, we recorded insignificant measurement period adjustments to the estimated fair value of the YourCause assets acquired and liabilities assumed following the receipt of new information. The adjustments resulted in an increase to net working capital, excluding deferred revenue, with the corresponding offset to goodwill.

The YourCause acquisition resulted in the identification of the following identifiable intangible assets:



		Weighted average amortization period	Intangible assets acquired
YourCause	Valuation Method	(in years)	(in thousands)
Acquired technology	Relief-from-Royalty	12	$	47,800
Customer relationships	Multi-period Excess Earnings	15	25,900
Marketing assets	Relief-from-Royalty	2	830
Non-compete agreements	Comparative (With and Without)	0	160
Total intangible assets		13	$	74,690

The method of amortization of identifiable finite-lived intangible assets is based on the expected pattern in which the estimated economic benefits of the respective assets are consumed or otherwise used up. Customer relationships and acquired technology assets are being amortized on an accelerated basis. Marketing assets are being amortized on a straight-line basis. The non-compete agreements were fully amortized as of March 31, 2019, based on the insignificance of the acquired assets.

We determined that the impact of this acquisition was not material to our consolidated financial statements; therefore, separate presentation of revenue and earnings since the acquisition date and pro forma information are not required nor included herein.

2018 Acquisitions

Reeher

On April 30, 2018, we acquired all of the outstanding equity securities, including all voting equity interests, of Reeher LLC, a Minnesota limited liability company (“Reeher”), pursuant to a securities purchase agreement. The acquisition expands our fundraising performance management capabilities and is intended to drive more effective fundraising and greater social good outcomes for our customers. We acquired the equity securities for an aggregate purchase price of $41.2 million in cash, net of closing adjustments. The purchase price and related expenses were funded primarily through borrowings under the 2017 Credit Facility (as defined in Note 9 of these consolidated financial statements). As a result of the acquisition, Reeher has become a wholly owned subsidiary of ours. We finalized the purchase price allocation of Reeher, including the valuation of assets acquired and liabilities assumed, during the second quarter of 2019. All measurement period adjustments were insignificant. We determined that the impact of this acquisition was not material to our consolidated financial statements; therefore, revenue and earnings since the acquisition date and pro forma information are not required or presented.

2017 Acquisitions

JustGiving

On October 2, 2017, Blackbaud Global Limited (“Blackbaud Global”), a U.K. limited liability company and wholly owned subsidiary of ours, acquired the entire issued share capital, including all voting equity interests, of Giving Limited, a U.K. private limited company doing business as “JustGiving” for an aggregate purchase price, including certain post-closing adjustments set forth in the related stock purchase agreement, of £102.4 million, or approximately $137.2 million, in cash. JustGiving is a market leading social platform for giving, and the acquisition is expected to enhance our capabilities to

serve both individual donors and nonprofits, expanding the peer-to-peer fundraising capabilities we offer today. As a result of the acquisition, JustGiving has become a wholly owned subsidiary of ours. We financed the acquisition of JustGiving through cash on hand and borrowings of $138.7 million under the 2017 Credit Facility. We finalized the purchase price allocation of JustGiving, including the valuation of assets acquired and liabilities assumed, during the fourth quarter of 2018. All measurement period adjustments were insignificant. We determined that the impact of this acquisition was not material to our consolidated financial statements; therefore, revenue and earnings since the acquisition date and pro forma information are not required or presented.

AcademicWorks

On April 3, 2017, we acquired all of the outstanding shares of capital stock, including all voting equity interests, of AcademicWorks, Inc., a Texas corporation ("AcademicWorks"), pursuant to a stock purchase agreement. AcademicWorks is the market leader in scholarship management for higher education and K-12 institutions, foundations, and grant-making institutions. The acquisition extends our offerings for our higher education, K-12, and corporate and foundation customers. We acquired AcademicWorks for $52.1 million in cash, net of closing adjustments. We financed the acquisition through a drawdown of a revolving credit loan under our then-existing credit facility. As a result of the acquisition, AcademicWorks has become a wholly owned subsidiary of ours. We finalized the purchase price allocation of AcademicWorks, including the valuation of assets acquired and liabilities assumed, during the first quarter of 2018. All measurement period adjustments were insignificant. We determined that the impact of this acquisition was not material to our consolidated financial statements; therefore, revenue and earnings since the acquisition date and pro forma information are not required or presented.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

4. Goodwill and Other Intangible Assets

The change in our goodwill during 2019 consisted of the following:



(dollars in thousands)	Total
Balance at December 31, 2018	$	545,213
Additions related to current year business combinations	87,350
Effect of foreign currency translation	1,525
Balance at December 31, 2019	$	634,088

We have recorded intangible assets acquired in various business combinations based on their fair values at the date of acquisition. The table below sets forth the balances of each class of intangible asset and related amortization as of:



	December 31,
(dollars in thousands)	2019			2018
Finite-lived gross carrying amount
Customer relationships	$	286,951		$	280,309
Marketing assets	34,246			48,484
Acquired software and technology	233,094			211,654
Non-compete agreements	2,200			2,499
Database	—			4,275
Total finite-lived gross carrying amount	556,491			547,221
Accumulated amortization
Customer relationships	(118,031		)	(116,648		)
Marketing assets	(3,648		)	(16,395		)
Acquired software and technology	(115,048		)	(118,268		)
Non-compete agreements	(1,869		)	(1,618		)
Database	—			(4,275		)
Total accumulated amortization	(238,596		)	(257,204		)
Indefinite-lived gross carrying amount
Marketing assets	—			1,600
Intangible assets, net	$	317,895		$	291,617

During the year ended December 31, 2019, changes to the gross carrying amounts of intangible asset classes were primarily related to our business acquisitions as described in Note 3 of these financial statements, write-offs of fully amortized intangible assets, and the effect of foreign currency translation.

During the year ended December 31, 2019, we also recorded an impairment charge of $0.9 million against an acquired marketing asset that reduced the carrying value of the asset to zero. The impairment charge resulted from our decision during the year to rebrand the solution to which the asset related. This impairment charge was recorded as amortization on our consolidated statements of comprehensive income.

Amortization expense

Amortization expense related to finite-lived intangible assets acquired in business combinations is allocated to cost of revenue on the consolidated statements of comprehensive income based on the revenue stream to which the asset contributes, except for marketing assets and non-compete agreements, for which the associated amortization expense is included in operating expenses.

The following table summarizes amortization expense of our finite-lived intangible assets:



	Years ended December 31,
(dollars in thousands)	2019		2018		2017
Included in cost of revenue:
Cost of recurring	$	42,565	$	39,877	$	37,557
Cost of one-time services and other	2,204		2,356		2,542
Total included in cost of revenue	44,769		42,233		40,099
Included in operating expenses	5,316		4,844		3,271
Total amortization of intangibles from business combinations	$	50,085	$	47,077	$	43,370

The following table outlines the estimated future amortization expense for each of the next five years for our finite-lived intangible assets as of December 31, 2019:



Years ending December 31, (dollars in thousands)	Amortization expense
2020	$	41,544
2021	37,010
2022	34,671
2023	33,665
2024	33,150
Total	$	180,040

Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

5. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:



	Years ended December 31,
(dollars in thousands, except per share amounts)	2019		2018		2017
Numerator:
Net income	$	11,908	$	44,841	$	73,633
Denominator:
Weighted average common shares	47,695,383		47,206,669		46,669,440
Add effect of dilutive securities:
Stock-based awards	616,888		838,415		1,106,262
Weighted average common shares assuming dilution	48,312,271		48,045,084		47,775,702
Earnings per share:
Basic	$	0.25	$	0.95	$	1.58
Diluted	$	0.25	$	0.93	$	1.54

Anti-dilutive shares excluded from calculations of diluted earnings per share	241,336		48,881		4,634

Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

6. Fair Value Measurements

Recurring fair value measurements

Assets and liabilities that are measured at fair value on a recurring basis consisted of the following, as of the dates indicated below:



	Fair value measurement using
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Fair value as of December 31, 2019
Financial liabilities:
Derivative instruments	$	—	$	1,757	$	—	$	1,757
Total financial liabilities	$	—	$	1,757	$	—	$	1,757

Fair value as of December 31, 2018
Financial assets:
Derivative instruments	$	—	$	2,260	$	—	$	2,260
Total financial assets	$	—	$	2,260	$	—	$	2,260

Fair value as of December 31, 2018
Financial liabilities:
Derivative instruments	$	—	$	186	$	—	$	186
Total financial liabilities	$	—	$	186	$	—	$	186

Our derivative instruments within the scope of Accounting Standards Codification ("ASC") 815, Derivatives and Hedging, are required to be recorded at fair value. Our derivative instruments that are recorded at fair value include interest rate swaps.

The fair value of our interest rate swaps was based on model-driven valuations using LIBOR rates, which are observable at commonly quoted intervals. Accordingly, our interest rate swaps are classified within Level 2 of the fair value hierarchy.

We believe the carrying amounts of our cash and cash equivalents, restricted cash due to customers, accounts receivable, trade accounts payable, accrued expenses and other current liabilities and due to customers approximate their fair values at December 31, 2019 and December 31, 2018, due to the immediate or short-term maturity of these instruments.

We believe the carrying amount of our debt approximates its fair value at December 31, 2019 and December 31, 2018, as the debt bears interest rates that approximate market value. As LIBOR rates are observable at commonly quoted intervals, our debt is classified within Level 2 of the fair value hierarchy.

We did not transfer any assets or liabilities among the levels within the fair value hierarchy during the years ended December 31, 2019, 2018 and 2017. Additionally, we did not hold any Level 3 assets or liabilities during the years ended December 31, 2019, 2018 and 2017.

Non-recurring fair value measurements

Assets and liabilities that are measured at fair value on a non-recurring basis include long-lived, intangible assets, goodwill and operating lease ROU assets, which are recognized at fair value during the period in which an acquisition is completed or at lease commencement, from updated estimates and assumptions during the measurement period, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for long-lived assets, intangible assets acquired and operating lease ROU assets, are based on Level 3 unobservable inputs. In the event of an impairment, we determine the fair value of these assets other than goodwill using a discounted cash flow approach, which contains

significant unobservable inputs and, therefore, is considered a Level 3 fair value measurement. The unobservable inputs in the analysis generally include future cash flow projections and a discount rate. For goodwill impairment testing, we estimate fair value using market-based methods including the use of market capitalization and consideration of a control premium.

During the year ended December 31, 2019, we recorded impairment charges of $3.8 million against our operating lease ROU assets, $1.4 million against certain property and equipment assets and $0.9 million against certain finite-lived intangible assets. See Notes 11, 7 and 4, respectively, to these consolidated financial statements for additional details.

There were no other non-recurring fair value adjustments during 2019, 2018 and 2017 except for certain business combination accounting adjustments to the initial fair value estimates of the assets acquired and liabilities assumed at the acquisition date from updated estimates and assumptions during the measurement period. See Note 3 and Note 4 to these consolidated financial statements for additional details. The measurement period may be up to one year from the acquisition date. We record any measurement period adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill.

Property and Equipment and Software Development Costs

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment and Software Development Costs

7. Property and Equipment and Software Development Costs

Property and equipment

Property and equipment consisted of the following as of:



	Estimated useful life (years)	December 31,
(dollars in thousands)	Estimated useful life (years)	2019			2018
Equipment	3 - 5	$	4,512		$	4,243
Computer hardware	1 - 5	67,045			75,060
Computer software	1 - 5	35,726			34,294
Construction in progress	—	213			233
Furniture and fixtures	1 - 7	7,823			7,004
Leasehold improvements	Lesser of lease term or estimated useful life	24,295			26,795
Total property and equipment		139,614			147,629
Less: accumulated depreciation		(104,068		)	(107,598		)
Property and equipment, net		$	35,546		$	40,031

Depreciation expense was $15.0 million, $15.9 million and $17.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.

During the year ended December 31, 2019, we recorded impairment charges of $1.4 million against certain property and equipment assets that reduced the carrying value of the assets to zero. These impairment charges resulted primarily from our facilities optimization restructuring as we wrote-off facilities-related fixed assets that we would no longer use. See Note 19 to these consolidated financial statements for additional details regarding our facilities optimization restructuring.

Software development costs

Software development costs consisted of the following as of:



	Estimated useful life (years)	December 31,
(dollars in thousands)	Estimated useful life (years)	2019			2018
Software development costs	3 - 7	$	139,014		$	121,983
Less: accumulated amortization		(37,712		)	(46,884		)
Software development costs, net		$	101,302		$	75,099

During the year ended December 31, 2019, changes to the gross carrying amount of software development costs were primarily related to qualifying costs associated with development activities that are required to be capitalized under the internal-use software accounting guidance such as those for our cloud solutions, write-offs of fully amortized assets, and the effect of foreign currency translation.

Amortization expense related to software development costs was $21.0 million, $16.6 million and $12.8 million for the years ended December 31, 2019, 2018 and 2017, respectively, and is included primarily in cost of recurring.

Consolidated Financial Statement Details

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated Financial Statement Details

8. Consolidated Financial Statement Details

Prepaid expenses and other assets



(dollars in thousands)	December 31, 2019		December 31, 2018
Costs of obtaining contracts⁽¹⁾⁽²⁾	$	90,764	$	85,590
Prepaid software maintenance and subscriptions	24,678		21,134
Unbilled accounts receivable	6,233		4,161
Prepaid insurance	1,585		1,087
Taxes, prepaid and receivable	849		2,055
Security deposits	885		1,020
Other assets	8,051		10,104
Total prepaid expenses and other assets	133,045		125,151
Less: Long-term portion	65,193		65,363
Prepaid expenses and other current assets	$	67,852	$	59,788


(1)	Amortization expense from costs of obtaining contracts was $38.1 million, $35.7 million and $35.8 million for the years ended December 31, 2019, 2018 and 2017, respectively, and is included in sales, marketing and customer success expense in our consolidated statements of comprehensive income.


(2)	The current portion of costs of obtaining contracts as of December 31, 2019 and 2018 was $33.0 million and $31.7 million, respectively.

Accrued expenses and other liabilities



(dollars in thousands)	December 31, 2019		December 31, 2018
Operating lease liabilities, current portion⁽¹⁾	$	19,784	$	—
Accrued bonuses	$	24,617	$	14,868
Accrued commissions and salaries	6,980		9,934
Taxes payable	6,835		6,204
Customer credit balances	4,505		4,076
Unrecognized tax benefit	3,758		2,719
Accrued vacation costs	2,232		2,352
Accrued health care costs	2,399		1,497
Other liabilities	7,949		14,631
Total accrued expenses and other liabilities	79,059		56,281
Less: Long-term portion	5,742		9,388
Accrued expenses and other current liabilities	$	73,317	$	46,893


(1)	Upon adoption of ASU 2016-02 at January 1, 2019, we recognized lease liabilities for our operating leases. See Note 2 of these consolidated financial statements for details.

Deferred revenue



(dollars in thousands)	December 31, 2019		December 31, 2018
Recurring	$	302,751	$	286,960
One-time services and other	13,386		11,595
Total deferred revenue	316,137		298,555
Less: Long-term portion	1,802		2,564
Deferred revenue, current portion	$	314,335	$	295,991

Other income, net



	Years ended December 31,
(dollars in thousands)	2019		2018			2017
Interest income	$	2,802	$	2,008		$	993
Gain on derivative instrument	—		—			462
Loss on debt extinguishment	—		—			(299		)
Other income (expense), net	1,256		(905		)	1,104
Other income, net	$	4,058	$	1,103		$	2,260

Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

9. Debt

The following table summarizes our debt balances and the related weighted average effective interest rates, which includes the effect of interest rate swap agreements.



	Debt balance at				Weighted average effective interest rate at
(dollars in thousands)	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Credit facility:
Revolving credit loans	$	187,000	$	100,000	3.11	%	4.13	%
Term loans	281,250		288,750		3.22	%	3.44	%
Total debt	468,250		388,750		3.18	%	3.61	%
Less: Unamortized discount and debt issuance costs	1,150		1,626
Less: Debt, current portion	7,500		7,500		3.05	%	3.77	%
Debt, net of current portion	$	459,600	$	379,624	3.18	%	3.61	%

2017 refinancing

We were previously party to a $325.0 million 5-year credit facility entered into during February 2014. The credit facility included: a dollar and a designated currency revolving credit facility with sublimits for letters of credit and swingline loans (the “2014 Revolving Facility”) and a delayed draw term loan (the “2014 Term Loan”) together, (the “2014 Credit Facility”).

In June 2017, we entered into a 5-year $700.0 million senior credit facility (the “2017 Credit Facility”). The 2017 Credit Facility includes a $400.0 million revolving credit facility (the “2017 Revolving Facility”) and a $300.0 million term loan facility (the “2017 Term Loan”). Upon closing we drew $300.0 million on a term loan and $110.0 million in revolving credit loans, which was used to repay all amounts outstanding under the 2014 Credit Facility, fees and expenses incurred in connection with the 2017 Credit Facility, and for other general corporate purposes.

Certain lenders of the 2014 Term Loan participated in the 2017 Term Loan and the change in the present value of our future cash flows to these lenders under the 2014 Term Loan and under the 2017 Term Loan was less than 10%. Accordingly, we accounted for the refinancing event for these lenders as a debt modification. Certain lenders of the 2014 Term Loan did not participate in the 2017 Term Loan. Accordingly, we accounted for the refinancing event for these lenders as a debt extinguishment. Certain lenders of the 2014 Revolving Facility participated in the 2017 Revolving Facility and provided increased borrowing capacities. Accordingly, we accounted for the refinancing event for these lenders as a debt modification. Certain lenders of the 2014 Revolving Facility did not participate in the 2017 Revolving Facility. Accordingly, we accounted for the refinancing event for these lenders as a debt extinguishment.

In 2017, we recorded an insignificant loss on debt extinguishment related to the write-off of debt discount and deferred financing costs for the portions of the 2014 Credit Facility considered to be extinguished. This loss was recognized in the consolidated statements of comprehensive income within other income (expense), net.

In connection with our entry into the 2017 Credit Facility, we paid $3.1 million in financing costs, of which $1.0 million were capitalized in other assets and, together with a portion of the unamortized deferred financing costs from the 2014 Credit Facility and prior facilities, are being amortized into interest expense ratably over the term of the new facility. As of December 31, 2019 and 2018, deferred financing costs totaling $0.6 million and $0.9 million, respectively, were included in other assets on our consolidated balance sheets. We recorded aggregate financing costs of $1.8 million as a direct deduction from the carrying amount of our debt liability, which related to debt discount (fees paid to lenders) and debt issuance costs for the 2017 Term Loan.

Summary of the 2017 Credit Facility

The 2017 Revolving Facility includes (i) a $50.0 million sublimit available for the issuance of standby letters of credit, (ii) a $50.0 million sublimit available for swingline loans, and (iii) a $100.0 million sublimit available for multicurrency borrowings.

The 2017 Credit Facility is secured by the stock and limited liability company interests of certain of our subsidiaries and any of our material domestic subsidiaries.

Amounts borrowed under the dollar tranche revolving credit loans and term loan under the 2017 Credit Facility bear interest at a rate per annum equal to, at our option, (a) a base rate equal to the highest of (i) the prime rate announced by Bank of America, N.A., (ii) the Federal Funds Rate plus 0.50% and (iii) the Eurocurrency Rate (which varies depending on the currency in which the loan is denominated) plus 1.00% (the “Base Rate”), in addition to a margin of 0.00% to 0.75%, or (b) Eurocurrency Rate plus a margin of 1.00% to 1.75%.

We also pay a quarterly commitment fee on the unused portion of the 2017 Revolving Facility from 0.15% to 0.25% per annum, depending on our net leverage ratio. At December 31, 2019, the commitment fee was 0.20%.

The term loan under the 2017 Credit Facility requires periodic principal payments. The balance of the term loan and any amounts drawn on the revolving credit loans are due upon maturity of the 2017 Credit Facility in June 2022. We evaluate the classification of our debt as current or non-current based on the required annual maturities of the 2017 Credit Facility.

The 2017 Credit Facility includes financial covenants related to the net leverage ratio and interest coverage ratio, as well as restrictions on our ability to declare and pay dividends and our ability to repurchase shares of our common stock. At December 31, 2019, we were in compliance with our debt covenants under the 2017 Credit Facility.

The 2017 Credit Facility also includes an option to request increases in the revolving commitments and/or request additional term loans in an aggregate principal amount of up to $200.0 million plus an amount, if any, such that the Net Leverage Ratio shall be no greater than 3.00 to 1.00. At December 31, 2019, our available borrowing capacity under the 2017 Credit Facility was $209.6 million.

Financing for 2019 acquisition

On January 2, 2019, we acquired YourCause for $157.7 million in cash, net of closing adjustments. We financed the acquisition with a revolving credit loan under the 2017 Credit Facility.

Other debt

In December 2019, we entered into a 4-year $2.2 million agreement to finance our purchase of software and related services for our internal use. The agreement is a non-interest-bearing note requiring four equal annual payments, with the first payment due in January 2020. Interest associated with the note will be imputed at the rate we would incur for amounts borrowed under the 2017 Credit Facility. As of December 31, 2019, there were no amounts outstanding under the agreement.

As of December 31, 2019, the required annual maturities related to the 2017 Credit Facility were as follows:



Years ending December 31, (dollars in thousands)	Annual maturities
2020	$	7,500
2021	7,500
2022	453,250
2023	—
2024	—
Thereafter	—
Total required maturities	$	468,250

Derivative Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives Instruments

10. Derivative Instruments

Cash flow hedges

We generally use derivative instruments to manage our variable interest rate risk. In July 2017, we entered into an interest rate swap agreement (the "July 2017 Swap Agreement"), which effectively converts portions of our variable rate debt under our credit facility to a fixed rate for the term of the July 2017 Swap Agreement. The notional value of the July 2017 Swap Agreement was $150.0 million with an effective date beginning in July 2017 through July 2021. We designated the July 2017 Swap Agreement as a cash flow hedge at the inception of the contract.

In February 2018, we entered into an additional interest rate swap agreement (the "February 2018 Swap Agreement"), which effectively converts portions of our variable rate debt under our credit facility to a fixed rate for the term of the February 2018 Swap Agreement. The notional value of the February 2018 Swap Agreement was $50.0 million with an effective date beginning in February 2018 through June 2021. We designated the February 2018 Swap Agreement as a cash flow hedge at the inception of the contract.

In June 2019, we entered into an additional interest rate swap agreement (the "June 2019 Swap Agreement"), which effectively converts portions of our variable rate debt under the 2017 Credit Facility to a fixed rate for the term of the June 2019 Swap Agreement. The notional value of the June 2019 Swap Agreement was $75.0 million with an effective date beginning in June 2019 through June 2021. We designated the June 2019 Swap Agreement as a cash flow hedge at the inception of the contract.

Undesignated contracts

In June 2017, we entered into a foreign currency option contract to hedge our exposure to currency fluctuations in connection with our acquisition of JustGiving because the purchase price was denominated in British Pounds. The notional value of the instrument was £100.0 million with an effective date beginning in June 2017 and maturing in September 2017. We settled the foreign currency option contract in September 2017. We did not designate the foreign currency option contract as a cash flow hedge for accounting purposes since it involved a business combination. As such, changes in the fair value of this derivative were recognized in earnings. The insignificant premium paid for this option and the $1.0 million in proceeds from the settlement are shown within cash flows from investing activities in our consolidated statements of cash flows.

As the closing date of our acquisition of JustGiving extended beyond the settlement date of the foreign currency option contract, we entered into a foreign currency forward contract in September 2017 with settlement in October 2017. The notional value of the instrument was £103.5 million. We did not designate the foreign currency forward contract as a cash flow hedge for accounting purposes since it involved a business combination. As such, changes in the fair value of this derivative were recognized in earnings. The insignificant premium paid for this forward contract is shown within cash flows from investing activities in our consolidated statements of cash flows.

The fair values of our derivative instruments were as follows as of:



		Asset Derivatives					Liability Derivatives
(dollars in thousands)	Balance sheet location	December 31, 2019		December 31, 2018		Balance sheet location	December 31, 2019		December 31, 2018
Derivative instruments designated as hedging instruments:
Interest rate swaps, current portion	Prepaid expenses and other current assets	$	—	$	—	Accrued expenses and other current liabilities	$	—	$	—
Interest rate swaps, long-term portion	Other assets	—		2,260		Other liabilities	1,757		186
Total derivative instruments designated as hedging instruments		$	—	$	2,260		$	1,757	$	186

We did not have any undesignated derivative instruments as of December 31, 2019 and 2018.

The effects of derivative instruments in cash flow hedging relationships were as follows:



	Gain (loss) recognized in accumulated other comprehensive loss as of			Location of gain (loss) reclassified from accumulated other comprehensive loss into income	Gain (loss) reclassified from accumulated other comprehensive loss into income
(dollars in thousands)	December 31, 2019				Year ended December 31, 2019
Interest rate swaps	$	(1,757	)	Interest expense	$	573

	December 31, 2018				Year ended December 31, 2018
Interest rate swaps	$	2,074		Interest expense	$	118

	December 31, 2017				Year ended December 31, 2017
Interest rate swaps	$	1,283		Interest expense	$	(293	)

Our policy requires that derivatives used for hedging purposes be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accumulated other comprehensive income (loss) includes unrealized gains or losses from the change in fair value measurement of our derivative instruments each reporting period and the related income tax expense or benefit. Changes in the fair value measurements of the derivative instruments and the related income tax expense or benefit are reflected as adjustments to accumulated other comprehensive income (loss) until the actual hedged expense is incurred or until the hedge is terminated at which point the unrealized gain (loss) is reclassified from accumulated other comprehensive income (loss) to current earnings. The estimated accumulated other comprehensive income as of December 31, 2019 that is expected to be reclassified into earnings within the next twelve months is $1.0 million. There were no ineffective portions of our interest rate swap derivatives during the years ended December 31, 2019, 2018 and 2017. See Note 14 to these consolidated financial statements for a summary of the changes in accumulated other comprehensive income (loss) by component.

We did not have any undesignated derivative instruments during 2019 and 2018. The effects of undesignated derivative instruments during 2017 were as follows:



	Location of gain (loss) recognized in income on derivative	Gain (loss) recognized in income
(dollars in thousands)	Location of gain (loss) recognized in income on derivative	Year ended December 31, 2017
Foreign currency option contracts	Other income (expense), net	$	513
Foreign currency forward contracts	Other income (expense), net	$	(51	)
Total gain		$	462

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

Leases

We have operating leases for corporate offices, subleased offices and certain equipment and furniture. Our leases have remaining lease terms of less than 1 year to 19 years, some of which include options to extend the leases for up to 5 years. We do not have lease agreements with residual value guarantees, sale leaseback terms or material restrictive covenants.

In May 2016, we entered into a lease agreement for our Global Headquarters Facility in Charleston, South Carolina. There are two phases for construction of the Global Headquarters Facility. Phase One included a building with approximately 172,000 rentable square feet, which we began using in April 2018. The lease agreement also grants us a Phase Two option to request that the landlord construct and lease to us a second office building and related improvements. The lease agreement expires in April 2038 and provides for 4 renewal periods of 5 years each at a base rent equal to the then prevailing market rate for comparable buildings.

We continue to lease our former headquarters facility, now called our Customer Operations Center, in Charleston, South Carolina. The lease expires in October 2023 and has 2 renewal options of 5 years each. We also have a lease for office space in Austin, Texas which expires in September 2023 and has 2 renewal options of 5 years each.

For each of the leases discussed above, we have not included the renewal options in the lease terms for calculating the lease liability as the renewal options allow us to maintain operational flexibility and we are not reasonably certain we will exercise these options at this time.

As of December 31, 2019, we had an additional operating lease for equipment that had not yet commenced with future rent payments of $0.8 million. This operating lease commenced on January 1, 2020 with a lease term of 3 years.

The components of lease expense for the year ended December 31, 2019, were as follows:



	Year ended December 31,
(dollars in thousands)	2019
Operating lease cost⁽¹⁾	$	27,519
Variable lease cost	4,035
Sublease income	(3,189		)
Net lease cost	$	28,365


(1)	Includes short-term lease costs, which were immaterial.

During the twelve months ended December 31, 2019, we recorded $3.8 million in impairments of operating lease ROU assets associated with certain leased office spaces we ceased using as part of our facilities optimization restructuring. These impairments, which were based on our estimates about our inability to sublease the office spaces, were recorded as restructuring expense on our consolidated statements of comprehensive income. See Note 19 to these consolidated financial statements for additional details regarding our facilities optimization restructuring.

Total rent expense as determined under ASC 840 was $22.2 million and $17.1 million for the years ended December 31, 2018 and 2017, respectively.

Maturities of our operating lease liabilities as of December 31, 2019 were as follows:



Years ending December 31, (dollars in thousands)	Operating leases⁽¹⁾
2020	$	25,999
2021	21,840
2022	17,187
2023	14,651
2024	7,790
Thereafter	74,168
Total lease payments	161,635
Less: Amount representing interest	46,227
Present value of future payments	$	115,408


(1)	Our maturities of our operating lease liabilities do not include payments related to Phase Two of our New Headquarters Facility, as that option had not been exercised as of December 31, 2019.

As determined under ASC 840, the future minimum lease payments related to lease agreements with a remaining noncancelable term in excess of one year, net of related sublease commitments and lease incentives, as of December 31, 2018 were as follows:



Years ending December 31, (dollars in thousands)	Operating leases
2019	$	20,808
2020	20,274
2021	16,924
2022	14,391
2023	12,923
Thereafter	81,755
Total minimum lease payments	$	167,075

Our ROU assets and lease liabilities are included in the following line items in our consolidated balance sheet:



(dollars in thousands)	December 31, 2019
Operating leases
Operating lease right-of-use assets	$	104,400

Accrued expenses and other current liabilities	$	19,784
Operating lease liabilities, net of current portion	95,624
Total operating lease liabilities	$	115,408

As of December 31, 2019, the weighted average remaining lease terms and discount rates were as follows:



(dollars in thousands)	December 31, 2019
Operating leases
Weighted average remaining lease term (years)	12.5
Weighted average discount rate	5.96	%

Supplemental cash flow information related to leases during the year ended December 31, 2019, was as follows:



	Year ended December 31,
(dollars in thousands)	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,569
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases	102,245

Other commitments

As discussed in Note 9 to these consolidated financial statements, the term loans under the 2017 Credit Facility require periodic principal payments. The balance of the term loans and any amounts drawn on the revolving credit loans are due upon maturity of the 2017 Credit Facility in June 2022.

We have contractual obligations for third-party technology used in our solutions and for other services we purchase as part of our normal operations. In certain cases, these arrangements require a minimum annual purchase commitment by

us. As of December 31, 2019, the remaining aggregate minimum purchase commitment under these arrangements was approximately $91.7 million through 2023.

Solution and service indemnifications

In the ordinary course of business, we provide certain indemnifications of varying scope to customers against claims of intellectual property infringement made by third parties arising from the use of our solutions or services. If we determine that it is probable that a loss has been incurred related to solution or service indemnifications, any such loss that could be reasonably estimated would be recognized. We have not identified any losses and, accordingly, we have not recorded a liability related to these indemnifications.

Guarantees and indemnification obligations

We enter into agreements in the ordinary course of business with, among others, customers, creditors, vendors and service providers. Pursuant to certain of these agreements we have agreed to indemnify the other party for certain matters, such as property damage, personal injury, acts or omissions of ours, or our employees, agents or representatives, or third-party claims alleging that the activities of its contractual partner pursuant to the contract infringe a patent, trademark or copyright of such third party.

Legal proceedings

We are subject to legal proceedings and claims that arise in the ordinary course of business. We make a provision for a loss contingency when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Unless otherwise specifically disclosed in this note, we have determined as of December 31, 2019, that no provision for liability nor disclosure is required related to any claim against us because (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial.

All legal costs associated with litigation are expensed as incurred. Litigation is inherently unpredictable. However, we believe that we have valid defenses with respect to the legal matters pending against us. It is possible, nevertheless, that our consolidated financial position, results of operations or cash flows could be negatively affected in any particular period by an unfavorable resolution of one or more of such proceedings, claims or investigations.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

We file income tax returns in the U.S. for federal and various state jurisdictions as well as in foreign jurisdictions including Canada, the U.K., Australia, Ireland and Costa Rica. We are generally subject to U.S. federal income tax examination for calendar tax years 2016 through 2019 as well as state and foreign income tax examinations for various years depending on statutes of limitations of those jurisdictions. We are currently under U.S. federal income tax examination for the calendar year 2016.

In December 2017, the Tax Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time U.S. Federal transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017.

The Tax Act eliminates the exceptions for performance-based compensation and CFO compensation from the calculation under Section 162(m) of the Internal Revenue Code. A transition rule allows for the grandfathering of performance-based compensation pursuant to a written binding contract in effect as of November 2, 2017.

The Tax Act also includes the Global Intangible Low-Tax Income ("GILTI") provision, a new mechanism for taxing certain foreign profits, the Base Erosion Anti-Abuse Tax, a minimum tax on payments to related parties, and the Foreign-Derived Intangible Income ("FDII") provision, a tax incentive to earn income abroad.

The following summarizes the components of income tax expense (benefit):



	Years ended December 31,
(dollars in thousands)	2019			2018			2017
Current taxes:
U.S. Federal	$	1,534		$	(1,088	)	$	2,565
U.S. State and local	613			1,182			(144		)
International	130			306			101
Total current taxes	2,277			400			2,522
Deferred taxes:
U.S. Federal	(1,724		)	659			(17,128		)
U.S. State and local	(2,235		)	45			398
International	359			(1,323		)	(1,084		)
Total deferred taxes	(3,600		)	(619		)	(17,814		)
Total income tax benefit	$	(1,323	)	$	(219	)	$	(15,292	)

The following summarizes the components of income before provision for income taxes:



	Years ended December 31,
(dollars in thousands)	2019		2018			2017
U.S.	$	5,149	$	47,532		$	58,547
International	5,436		(2,910		)	(206		)
Income before provision for income taxes	$	10,585	$	44,622		$	58,341

A reconciliation between the effect of applying the federal statutory rate and the effective income tax rate used to calculate our income tax provision (benefit) is as follows:



	Years ended December 31,
	2019		2018		2017
Federal statutory rate	21.0	%	21.0	%	35.0	%
Effect of:
State income taxes, net of federal benefit	(1.7	)	4.1		1.8
Change in federal income tax rate applied to deferred tax balances	—		—		(43.1	)
Change in state income tax rate applied to deferred tax balances	(3.1	)	(0.4	)	—
Unrecognized tax benefit	4.4		(2.6	)	1.5
State credits, net of federal benefit	(15.4	)	(1.9	)	(1.4	)
Change in valuation reserve (primarily state credit reserves)	3.7		0.4		(1.0	)
Federal credits generated	(37.6	)	(10.4	)	(5.8	)
Foreign tax rate	(6.3	)	0.4		0.2
Acquisition costs	0.5		—		2.2
Section 162(m) limitation	30.8		4.2		2.5
Stock-based compensation	(20.2	)	(17.4	)	(18.9	)
GILTI inclusion	5.9		—		—
FDII benefit	(1.5	)	(0.7	)	—
Nondeductible meals, entertainment and transportation	11.3		2.6		0.8
Other	(4.3	)	0.2		—
Income tax benefit effective rate	(12.5	)%	(0.5	)%	(26.2	)%

The decrease in our effective income tax rate in 2019, when compared to 2018, was primarily due to the heightened impact of research credit generation net of Section 162(m) nondeductible compensation. Furthermore, the 2019 effective tax rate was favorably impacted by other state tax credits net of an overall increase to uncertain tax positions. Lastly, the effective tax rate was negatively impacted by GILTI, net of FDII benefit, resulting from an increase in non-US earnings. The reduced base further magnified the impact of other nondeductible items.

The significant components of our deferred tax assets and liabilities were as follows:



	December 31,
(dollars in thousands)	2019			2018
Deferred tax assets relating to:
Federal and state and foreign net operating loss carryforwards	$	9,203		$	11,021
Federal, state and foreign tax credits	24,435			18,936
Operating leases	35,620			—
Intangible assets	1,560			1,041
Stock-based compensation	11,717			11,462
Accrued bonuses	1,713			973
Deferred revenue	682			854
Allowance for doubtful accounts	1,374			1,242
Other	7,487			5,607
Total deferred tax assets	93,791			51,136
Deferred tax liabilities relating to:
Intangible assets	(46,569		)	(43,700		)
Operating leases	(32,888		)	—
Fixed assets	(4,446		)	(4,444		)
Costs of obtaining contracts	(21,128		)	(19,573		)
Capitalized software development costs	(26,107		)	(19,469		)
Other	(315		)	(926		)
Total deferred tax liabilities	(131,453		)	(88,112		)
Valuation allowance	(6,453		)	(6,855		)
Net deferred tax liability	$	(44,115	)	$	(43,831	)

As of December 31, 2019, our federal, foreign and state net operating loss carryforwards for income tax purposes were approximately $21.4 million, $19.3 million and $23.8 million, respectively. The federal and state net operating loss carryforwards are subject to various Internal Revenue Code limitations and applicable state tax laws. If not utilized, the federal net operating loss carryforwards will begin to expire in 2028 and the state net operating loss carryforwards will expire over various periods beginning in 2020. Our foreign net operating loss carryforwards have an unlimited carryforward period. As of December 31, 2019, our foreign tax credit carryforwards for income tax purposes were insignificant. Our federal tax credit carryforwards for income tax purposes were approximately $9.8 million. Our state tax credit carryforwards for income tax purposes were approximately $16.0 million, net of federal benefit. If not utilized, the federal tax credit carryforwards will begin to expire in 2036 and the state tax credit carryforwards will begin to expire in 2020. A portion of the foreign and state net operating loss carryforwards and state credit carryforwards have a valuation reserve due to management's uncertainty regarding the future ability to use such carryforwards.

The following table illustrates the change in our deferred tax asset valuation allowance:



Years ended December 31,	Balance at beginning of year		Acquisition- related change		Charges to expense			Balance at end of year
(dollars in thousands)
2019	$	6,855	$	—	$	(402	)	$	6,453
2018	7,205		16		(366		)	6,855
2017	6,994		—		211			7,205

The following table sets forth the change to our unrecognized tax benefit for the years ended December 31, 2019, 2018 and 2017:



	Years ended December 31,
(dollars in thousands)	2019			2018			2017
Balance at December 31, 2018	$	3,704		$	5,160		$	3,145
Increases from prior period positions	1,183			104			1,860
Decreases in prior year positions	(385		)	(413		)	(238		)
Increases from current period positions	456			58			404
Lapse of statute of limitations	(612		)	(1,205		)	(11		)
Balance at December 31, 2019	$	4,346		$	3,704		$	5,160

The total amount of unrecognized tax benefit that, if recognized, would favorably affect the effective tax rate was $3.9 million at December 31, 2019. Certain prior period amounts relating to our 2014 acquisitions are covered under indemnification agreements and, therefore, we have recorded a corresponding indemnification asset. We recognize accrued interest and penalties, if any, related to unrecognized tax benefits as a component of income tax expense. The total amount of accrued interest and penalties included in the consolidated balance sheet as of December 31, 2019 and December 31, 2018 was $1.0 million and $0.7 million, respectively. The total amount of interest and penalties included in the consolidated statements of comprehensive income as an increase or decrease in income tax expense for 2019, 2018 and 2017 was insignificant.

We have taken federal and state tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits might decrease within the next twelve months. This possible decrease could result from the expiration of statutes of limitations. The reasonably possible decrease at December 31, 2019 was $1.4 million.

For our undistributed earnings of foreign subsidiaries, which we do not consider to be significant, we concluded that these earnings would be permanently reinvested in the local jurisdictions and not repatriated to the United States. Accordingly, we have not provided for U.S. state income taxes and foreign withholding taxes on those undistributed earnings of our foreign subsidiaries. If some or all of such earnings were to be remitted, the amount of taxes payable would be insignificant.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

13. Stock-based Compensation

Employee stock-based compensation plans

Under the 2016 Equity and Incentive Compensation Plan (the "2016 Equity Plan"), we may grant incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, other stock awards and cash incentive awards to employees, directors and consultants. We maintain other stock-based compensation plans including the 2008 Equity Incentive Plan (the “2008 Equity Plan”), under which no additional grants may be made.

In connection with the acquisition of Convio in May 2012, we maintain the Convio, Inc. 1999 Stock Option/Stock Issuance Plan, as amended (the “Convio 1999 Plan”) and Convio, Inc. 2009 Stock Incentive Plan, as amended (the “Convio 2009 Plan”), which we assumed upon the acquisition of Convio. Our Compensation Committee of the Board of Directors administers all of these plans and the stock-based awards are granted under terms determined by them.

The total number of authorized stock-based awards available under our plans was 7,558,625 as of December 31, 2019. We issue common stock from our pool of authorized stock upon exercise of stock options and stock appreciation rights, vesting of restricted stock units or upon granting of restricted stock.

Historically, we have issued four types of awards under these plans: restricted stock awards, restricted stock units, stock appreciation rights and stock options. The following table sets forth the number of awards outstanding for each award type as of:



	Outstanding at December 31,
Award type	2019	2018
Restricted stock awards	1,316,764	1,263,510
Restricted stock units	501,487	459,673
Stock appreciation rights	—	60,871
Stock options	206	836

The majority of the stock-based awards granted under these plans have a 10-year contractual term. Stock appreciation rights (“SARs”) have contractual lives of 7 years. Awards granted to our executive officers and certain members of management are subject to accelerated vesting upon a change in control as defined in the employees’ retention agreement.

Expense recognition

We recognize compensation expense associated with stock options and awards with performance or market based vesting conditions on an accelerated basis over the requisite service period of the individual grantees, which generally equals the vesting period. We recognize compensation expense associated with restricted stock awards and SARs on a straight-line basis over the requisite service period of the individual grantees, which generally equals the vesting period. We recognize the effect of awards for which the requisite service period is not rendered when the award is forfeited (that is, we recognize the effect of forfeitures in compensation cost when they occur). Previously recognized compensation cost for an award is reversed in the period that the award is forfeited.

Stock-based compensation expense is allocated to cost of revenue and operating expenses on the consolidated statements of comprehensive income based on where the associated employee’s compensation is recorded. The following table summarizes stock-based compensation expense:



	Years ended December 31,
(in thousands)	2019		2018		2017
Included in cost of revenue:
Cost of recurring	$	1,879	$	2,464	$	1,627
Cost of one-time services and other	1,487		2,778		1,843
Total included in cost of revenue	3,366		5,242		3,470
Included in operating expenses:
Sales, marketing and customer success	11,203		9,285		6,381
Research and development	11,115		9,048		7,765
General and administrative	32,949		24,699		23,015
Total included in operating expenses	55,267		43,032		37,161
Total stock-based compensation expense	$	58,633	$	48,274	$	40,631

The total amount of compensation cost related to unvested awards not recognized was $88.0 million at December 31, 2019. It is expected that this amount will be recognized over a weighted average period of 1.7 years.

Restricted stock awards

We have granted shares of common stock subject to certain restrictions under the 2016 Equity Plan and the 2008 Equity Plan. Restricted stock awards granted to employees vest in equal annual installments generally over 4 years from the grant date subject to the recipient’s continued employment with us. Restricted stock awards granted to non-employee directors

vest after one year from the date of grant or, if earlier, immediately prior to the next annual election of directors, provided the non-employee director is serving as a director at that time. The fair market value of the stock at the time of the grant is amortized on a straight-line basis to expense over the period of vesting. Recipients of restricted stock awards have the right to vote such shares and receive dividends.

The following table summarizes our unvested restricted stock awards as of December 31, 2019, and changes during the year then ended:



Restricted stock awards	Restricted stock awards		Weighted average grant-date fair value		Weighted average remaining contractual term (in years)	Aggregate intrinsic value⁽¹⁾ (in thousands)
Unvested at January 1, 2019	1,263,510		$	75.46
Granted	723,868		78.39
Vested	(557,749	)	67.26
Forfeited	(112,865	)	80.27
Unvested at December 31, 2019	1,316,764		79.92		8.4	$	104,814


(1)	The intrinsic value is calculated as the market value as of the end of the fiscal period.

The total fair value of restricted stock awards that vested during the years ended December 31, 2019, 2018 and 2017 was $37.5 million, $24.2 million and $19.4 million, respectively. The weighted average grant-date fair value of restricted stock awards granted during the years ended December 31, 2018 and 2017 was $94.51 and $74.08, respectively.

Restricted stock units

We have also granted restricted stock units subject to certain restrictions under the 2016 Equity Plan and the 2008 Equity Plan. Restricted stock units granted to employees vest in equal annual installments generally over 3 years from the grant date subject to the recipient’s continued employment with us. We have also granted restricted stock units for which vesting is subject to meeting certain performance and/or market conditions. Restricted stock units granted with a market condition had a fair market value assigned at the grant date based on the use of a Monte Carlo simulation model. The fair market value of the stock at the time of the grant is amortized to expense on a straight-line basis over the period of vesting except for awards with market or performance conditions, which are amortized on an accelerated basis over the period of vesting.

The following table summarizes our unvested restricted stock units as of December 31, 2019, and changes during the year then ended:



Restricted stock units	Restricted stock units		Weighted average grant-date fair value		Weighted average remaining contractual term (in years)	Aggregate intrinsic value⁽¹⁾ (in thousands)
Unvested at January 1, 2019	459,673		$	79.78
Granted	302,719		77.90
Forfeited	(7,201	)	85.63
Vested	(253,704	)	75.68
Unvested at December 31, 2019	501,487		80.49		8.5	$	39,918


(1)	The intrinsic value is calculated as the market value as of the end of the fiscal period.

The total fair value of restricted stock units that vested during the years ended December 31, 2019, 2018 and 2017 was $19.2 million, $13.7 million, and $9.4 million, respectively. The weighted average grant date fair value of restricted stock units granted for the years ended December 31, 2018 and 2017 was $95.59 and $72.19, respectively.

Stock appreciation rights

SARs granted to employees were settled in stock at the time of exercise and vested in equal annual installments generally over 4 years from the date of grant subject to the recipient’s continued employment with us. The number of shares issued upon the exercise of the SARs was calculated as the difference between the share price of our stock on the date of exercise and the date of grant multiplied by the number of SARs divided by the share price on the exercise date.

There have been no new SARs granted since 2013 and all SARs previously granted were fully vested as of December 31, 2017. During the year ended December 31, 2019, 60,871 SARs were exercised, which had a weighted average exercise price of $22.24. The total intrinsic value of SARs exercised during the years ended December 31, 2019, 2018 and 2017 was $3.6 million, $12.4 million, and $14.2 million, respectively. The total fair value of SARs that vested during the year ended December 31, 2017 was insignificant. SARs granted with a market condition had a fair market value assigned at the grant date based on the use of a Monte Carlo simulation model. All other SARs granted had a fair market value assigned at the grant date based on the use of the Black-Scholes option pricing model.

Stock options

There have been no new stock option awards granted since 2005 and all outstanding stock options were fully vested as of December 31, 2010. The total intrinsic value of stock options exercised during the years ended December 31, 2019, 2018 and 2017 was insignificant. All outstanding stock options granted had a fair market value assigned at the grant date based on the use of the Black-Scholes option pricing model.

Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Stockholders' Equity

14. Stockholders' Equity

Preferred stock

Our Board of Directors may fix the relative rights and preferences of each series of preferred stock in a resolution of the Board of Directors.

Dividends

Our Board of Directors has adopted a dividend policy, which provides for the distribution to stockholders a portion of cash generated by us that is in excess of operational needs and capital expenditures. The 2017 Credit Facility limits the amount of dividends payable and certain state laws restrict the amount of dividends distributed.

The following table provides information with respect to quarterly dividends paid on common stock during the year ended December 31, 2019.



Declaration Date	Dividend per Share		Record Date	Payable Date
February 6, 2019	$	0.12	February 27	March 15
April 30, 2019	0.12		May 28	June 14
July 30, 2019	0.12		August 28	September 13
October 28, 2019	0.12		November 27	December 13

On February 10, 2020, our Board of Directors declared a first quarter 2020 dividend of $0.12 per share payable on March 13, 2020 to stockholders of record on February 28, 2020.

Stock repurchase program

In August 2010, our Board of Directors approved a stock repurchase program that authorized us to purchase up to $50.0 million of our outstanding shares of common stock. The program does not have an expiration date. The shares can be purchased from time to time on the open market or in privately negotiated transactions depending upon market conditions

and other factors. Under the 2017 Credit Facility, we also have restrictions on our ability to repurchase shares of our common stock.

We account for purchases of treasury stock under the cost method. The remaining amount available to purchase stock under the stock repurchase program was $50.0 million as of December 31, 2019.

Changes in accumulated other comprehensive loss by component

The changes in accumulated other comprehensive loss by component, consisted of the following:



	Years ended December 31,
(in thousands)	2019			2018			2017
Accumulated other comprehensive loss, beginning of period	$	(5,110	)	$	(642	)	$	(604	)
By component:
Gains and losses on cash flow hedges:
Accumulated other comprehensive income (loss) balance, beginning of period	$	1,498		$	748		$	(3	)
Other comprehensive (loss) income before reclassifications, net of tax effects of $860, $(239) and $(374)	(2,399		)	670			574
Amounts reclassified from accumulated other comprehensive (loss) income to interest expense	(573		)	(118		)	293
Tax benefit included in provision for income taxes	151			31			(116		)
Total amounts reclassified from accumulated other comprehensive (loss) income	(422		)	(87		)	177
Net current-period other comprehensive (loss) income	(2,821		)	583			751
Reclassification upon adoption of ASU 2018-02	—			167			—
Accumulated other comprehensive (loss) income balance, end of period	$	(1,323	)	$	1,498		$	748
Foreign currency translation adjustment:
Accumulated other comprehensive loss balance, beginning of period	$	(6,608	)	$	(1,390	)	$	(601	)
Translation adjustments	2,641			(5,218		)	(789		)
Accumulated other comprehensive loss balance, end of period	(3,967		)	(6,608		)	(1,390		)
Accumulated other comprehensive loss, end of period	$	(5,290	)	$	(5,110	)	$	(642	)

Defined Contribution Plan

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Defined Contribution Plan

15. Defined Contribution Plan

We have a defined contribution 401(k) plan (the "401K Plan") covering substantially all employees. Employees were able to contribute between 1% and 75% of their salaries in 2019, 2018 and 2017. We match 50% of qualified employees’ contributions up to 6% of their salary. The 401K Plan also provides for additional employer contributions to be made at our discretion. Total matching contributions to the 401K Plan for the years ended December 31, 2019, 2018 and 2017 were $8.7 million, $8.1 million and $7.1 million, respectively. There were no discretionary contributions by us to the 401K Plan in 2019, 2018 and 2017.

Segment Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Information

16. Segment Information

Our chief operating decision maker is our chief executive officer ("CEO"). Our chief operating decision maker uses consolidated financial information to make operating decisions, assess financial performance and allocate resources. We have one operating segment and one reportable segment.

The following table presents long-lived assets by geographic region based on the location of the assets.



	Years ended December 31,
(dollars in thousands)	2019		2018
United States	$	32,606	$	37,015
Other countries	2,940		3,016
Total property and equipment	$	35,546	$	40,031

See Note 17 to these consolidated financial statements for information about our revenues by geographic region.

Revenue Recognition

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

17. Revenue Recognition

Transaction price allocated to the remaining performance obligations

As of December 31, 2019, approximately $816 million of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 60% of these remaining performance obligations over the next 12 months, with the remainder recognized thereafter.

We applied the practical expedient in ASC 606-10-50-14 and have excluded the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less (one-time services); and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed (payment services and usage).

We also applied the practical expedient in ASC 606-10-65-1-(f)(3), whereby the transaction price allocated to the remaining performance obligations, or an explanation of when we expect to recognize that amount as revenue for all reporting periods presented before the date of the initial application, is not disclosed.

Contract balances

Our contract assets as of December 31, 2019 and December 31, 2018 were insignificant. Our opening and closing balances of deferred revenue were as follows:

The increase in deferred revenue during the year ended December 31, 2019 was primarily due to new subscription sales of our cloud solutions. Our acquisition of YourCause on January 2, 2019 also modestly contributed to the increase in deferred revenue since December 31, 2018. We also sold more subscription-based contracts for retained professional services. The amount of revenue recognized during the year ended December 31, 2019 that was included in the deferred revenue balance at the beginning of the period was approximately $290 million. The amount of revenue recognized during the year ended December 31, 2019 from performance obligations satisfied in prior periods was insignificant.

Disaggregation of revenue

We sell our cloud solutions and related services in two primary geographical markets: to customers in the United States, and to customers located outside of the United States. The following table presents our revenue by geographic area based on the address of our customers:



	Years ended December 31,
(dollars in thousands)	2019		2018		2017
United States	$	775,308	$	727,366	$	706,904
Other countries	125,115		121,240		81,583
Total revenue	$	900,423	$	848,606	$	788,487

The General Markets Group ("GMG"), the Enterprise Markets Group ("EMG"), and the International Markets Group ("IMG") comprise our go-to-market organizations. The following is a description of each market group as of December 31, 2019:


•	The GMG focuses on sales to all K-12 private schools, faith communities and arts and cultural organizations, as well as emerging and mid-sized prospects in the U.S.;


•	The EMG focuses on sales to all healthcare and higher education institutions, corporations and foundations, as well as large and/or strategic prospects in the U.S.; and


•	The IMG focuses on sales to all prospects and customers outside of the U.S.

The following table presents our revenue by market group:



	Years ended December 31,
(dollars in thousands)	2019		2018⁽²⁾		2017⁽²⁾
GMG	$	378,384	$	362,585	$	353,166
EMG⁽¹⁾	392,258		360,873		352,034
IMG	126,511		123,522		83,217
Other	3,270		1,626		70
Total revenue	$	900,423	$	848,606	$	788,487


(1)	The operating results of YourCause have been included in EMG from the date of acquisition. See Note 3 to these consolidated financial statements for details regarding this acquisition.

(2)

Beginning in the first quarter of 2019, all of our Canadian operations are included in IMG. We have recast our revenue by market group for the twelve months ended December 31, 2018 and 2017, to present them on a consistent basis with the current year.

Quarterly Results (unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results

18. Quarterly Results (Unaudited)



(dollars in thousands, except per share data)	December 31, 2019			September 30, 2019		June 30, 2019		March 31, 2019
Total revenue	$	237,839		$	221,120	$	225,634	$	215,830
Gross profit	121,302			119,323		124,827		116,547
Income from operations	3,586			7,883		13,491		2,185
Income before provision for income taxes	(1,262		)	4,930		9,873		(2,956		)
Net income	1,324			4,566		7,140		(1,122		)
Earnings per share
Basic	$	0.03		$	0.10	$	0.15	$	(0.02	)
Diluted	0.03			0.09		0.15		(0.02		)

(dollars in thousands, except per share data)	December 31, 2018			September 30, 2018		June 30, 2018		March 31, 2018
Total revenue	$	221,218		$	209,532	$	213,672	$	204,184
Gross profit	117,922			114,295		118,500		116,147
Income from operations	14,679			15,783		11,374		17,581
Income before provision for income taxes	11,485			11,496		7,417		14,224
Net income	9,334			11,164		6,592		17,751
Earnings per share
Basic	$	0.20		$	0.24	$	0.14	$	0.38
Diluted	0.19			0.23		0.14		0.37

Note: The individual amounts for each quarter may not sum to full year totals due to rounding.

The results of operations of acquired companies are included in the consolidated results of operations from the date of their respective acquisition. See Note 3 of these consolidated financial statements for details related to our business acquisitions.

Restructuring

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring

19. Restructuring

During 2017, in an effort to further our organizational objectives, including improved operating efficiency, customer outcomes and employee satisfaction, we initiated a multi-year plan to consolidate and relocate some of our existing offices to modern and more collaborative workspaces with short-term financial commitments. These workspaces are also more centrally located for our employees and closer to our customers and prospects. Restructuring costs incurred prior to our adoption of ASU 2016-02 on January 1, 2019 consisted primarily of costs to terminate lease agreements, contractual lease payments, net of estimated sublease income, upon vacating space as part of the plan, as well as insignificant costs to relocate affected employees and write-off facilities-related fixed assets that we would no longer use.

Upon adoption of ASU 2016-02 at January 1, 2019, we reduced our operating lease ROU assets recognized at transition by the carrying amounts of the restructuring liabilities for certain leased office spaces that we ceased using prior to December 31, 2018. See additional details below.

Restructuring costs incurred during the year ended December 31, 2019 consisted primarily of operating lease ROU asset impairment costs and, to a lesser extent, lease payments for offices we have ceased using and write-offs of facilities-related fixed assets that we will no longer use. See Notes 11 and 6 to these consolidated financial statements for additional details regarding these impairment costs and fixed asset write-offs.

As of December 31, 2019, we have substantially completed our facilities optimization restructuring plan. Any remaining restructuring costs related to these activities are expected to be insignificant.

The following table summarizes our facilities optimization restructuring costs as of December 31, 2019:



	Cumulative costs incurred as of		Costs incurred during the year ended⁽¹⁾		Cumulative costs incurred as of
(in thousands)	December 31, 2018		December 31, 2019
By component:
Contract termination costs	$	4,176	$	4,906	$	9,082
Other costs	1,208		902		2,110
Total	$	5,384	$	5,808	$	11,192


(1)	Includes $3.8 million of operating lease ROU asset impairment costs.

The change in our liability related to our facilities optimization restructuring during the twelve months ended December 31, 2019, consisted of the following:



	Accrued at		Increases for incurred costs⁽¹⁾		Written off upon adoption of ASU 2016-02⁽²⁾			Costs paid			Accrued at
(in thousands)	December 31, 2018		Increases for incurred costs⁽¹⁾		Written off upon adoption of ASU 2016-02⁽²⁾			Costs paid			December 31, 2019
By component:
Contract termination costs	$	1,865	$	4,906	$	(1,656	)	$	(5,115	)	$	—
Other costs	50		902		—			(952		)	—
Total	$	1,915	$	5,808	$	(1,656	)	$	(6,067	)	$	—


(1)	Includes $3.8 million of operating lease ROU asset impairment costs.

(2)

Basis of Presentation (Policy)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).

Basis of consolidation

The consolidated financial statements include the accounts of Blackbaud, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of estimates

Recently adopted accounting pronouncements

Recently issued accounting pronouncements

There are no recently issued accounting pronouncements that are expected to have a material impact on our financial position or results of operations when adopted in the future.

Revenue recognition

We determine revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer;

•Identification of the performance obligations in the contract;

•Determination of the transaction price;

•Allocation of the transaction price to the performance obligations in the contract; and

•Recognition of revenue when, or as, we satisfy a performance obligation.

Recurring

One-time services and other

One-time services and other revenue primarily consists of fees for one-time consulting, analytic and onsite training services.

Contracts with multiple performance obligations

Costs of obtaining contracts, contract assets and deferred revenue

Fair value measurements


•	Level 1 - Quoted prices for identical assets or liabilities in active markets;


•	Level 2 - Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and


•	Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable.

Derivative instruments

Sales taxes

We present sales taxes and other taxes collected from customers and remitted to governmental authorities on a net basis and, as such, exclude them from revenues.

Cash and cash equivalents

We consider all highly liquid investments purchased with an original maturity of three months or less and cash items in transit to be cash equivalents.

Restricted cash due to customers; customer funds receivable; due to customers

Restricted cash due to customers; Customer funds receivable; Due to customers

Concentration of credit risk

Property and equipment

Business combinations

Goodwill

Intangible assets

Intangible assets other than goodwill

We amortize finite-lived intangible assets over their estimated useful lives as follows.



	Basis of amortization	Amortization period (in years)
Customer relationships	Straight-line and accelerated⁽¹⁾	8-17
Marketing assets	Straight-line	2-15
Acquired software and technology	Straight-line and accelerated⁽¹⁾	5-14
Non-compete agreements	Straight-line	1-5


(1)	Certain of the customer relationships and acquired software and technology assets are amortized on an accelerated basis.

Impairment of long-lived assets

Deferred financing costs

Stock-based compensation

Income taxes

Foreign currency

Research and development

Software development costs, software for internal use

Software development costs

Software development costs, software to be sold

Sales returns and allowance for doubtful accounts

Accounts receivable

Advertising costs

We expense advertising costs as incurred

Legal proceedings

Basis of Presentation (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of Finite-Lived Intangible Assets

We amortize finite-lived intangible assets over their estimated useful lives as follows.



	Basis of amortization	Amortization period (in years)
Customer relationships	Straight-line and accelerated⁽¹⁾	8-17
Marketing assets	Straight-line	2-15
Acquired software and technology	Straight-line and accelerated⁽¹⁾	5-14
Non-compete agreements	Straight-line	1-5

(1)

Certain of the customer relationships and acquired software and technology assets are amortized on an accelerated basis.

Schedule of Changes in Allowance for Sales Returns and Doubtful Accounts

Below is a summary of the changes in our allowance for sales returns.



Years ended December 31, (in thousands)	Balance at beginning of year		Provision/ adjustment		Write-off			Balance at end of year
2019	$	3,377	$	6,232	$	(5,963	)	$	3,646
2018	4,400		4,952		(5,975		)	3,377
2017	2,704		10,511		(8,815		)	4,400

Below is a summary of the changes in our allowance for doubtful accounts.



Years ended December 31, (in thousands)	Balance at beginning of year		Provision/ adjustment		Write-off			Balance at end of year
2019	$	1,345	$	2,476	$	(1,938	)	$	1,883
2018	741		2,446		(1,842		)	1,345
2017	587		1,148		(994		)	741

Business Combinations (Tables) - YourCause [Member]

12 Months Ended

Dec. 31, 2019

Business Acquisition [Line Items]

Purchase Price Allocation



(in thousands)	Purchase price allocation
Net working capital, excluding deferred revenue	$	3,711
Other long-term assets	2,574
Identifiable intangible assets	74,690
Deferred tax liability	(4,660		)
Deferred revenue	(4,300		)
Other long-term liabilities	(1,650		)
Goodwill	87,350
Total purchase price	$	157,715

Acquired Intangible Assets

The YourCause acquisition resulted in the identification of the following identifiable intangible assets:



		Weighted average amortization period	Intangible assets acquired
YourCause	Valuation Method	(in years)	(in thousands)
Acquired technology	Relief-from-Royalty	12	$	47,800
Customer relationships	Multi-period Excess Earnings	15	25,900
Marketing assets	Relief-from-Royalty	2	830
Non-compete agreements	Comparative (With and Without)	0	160
Total intangible assets		13	$	74,690

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Change in Goodwill

The change in our goodwill during 2019 consisted of the following:



(dollars in thousands)	Total
Balance at December 31, 2018	$	545,213
Additions related to current year business combinations	87,350
Effect of foreign currency translation	1,525
Balance at December 31, 2019	$	634,088

Fair Values Of Intangible Assets Acquired In Various Business Combinations By Class

The table below sets forth the balances of each class of intangible asset and related amortization as of:



	December 31,
(dollars in thousands)	2019			2018
Finite-lived gross carrying amount
Customer relationships	$	286,951		$	280,309
Marketing assets	34,246			48,484
Acquired software and technology	233,094			211,654
Non-compete agreements	2,200			2,499
Database	—			4,275
Total finite-lived gross carrying amount	556,491			547,221
Accumulated amortization
Customer relationships	(118,031		)	(116,648		)
Marketing assets	(3,648		)	(16,395		)
Acquired software and technology	(115,048		)	(118,268		)
Non-compete agreements	(1,869		)	(1,618		)
Database	—			(4,275		)
Total accumulated amortization	(238,596		)	(257,204		)
Indefinite-lived gross carrying amount
Marketing assets	—			1,600
Intangible assets, net	$	317,895		$	291,617

Summary of Amortization Expense

The following table summarizes amortization expense of our finite-lived intangible assets:



	Years ended December 31,
(dollars in thousands)	2019		2018		2017
Included in cost of revenue:
Cost of recurring	$	42,565	$	39,877	$	37,557
Cost of one-time services and other	2,204		2,356		2,542
Total included in cost of revenue	44,769		42,233		40,099
Included in operating expenses	5,316		4,844		3,271
Total amortization of intangibles from business combinations	$	50,085	$	47,077	$	43,370

Future Amortization Expense for Finite-Lived Intangible Assets

The following table outlines the estimated future amortization expense for each of the next five years for our finite-lived intangible assets as of December 31, 2019:



Years ending December 31, (dollars in thousands)	Amortization expense
2020	$	41,544
2021	37,010
2022	34,671
2023	33,665
2024	33,150
Total	$	180,040

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:



	Years ended December 31,
(dollars in thousands, except per share amounts)	2019		2018		2017
Numerator:
Net income	$	11,908	$	44,841	$	73,633
Denominator:
Weighted average common shares	47,695,383		47,206,669		46,669,440
Add effect of dilutive securities:
Stock-based awards	616,888		838,415		1,106,262
Weighted average common shares assuming dilution	48,312,271		48,045,084		47,775,702
Earnings per share:
Basic	$	0.25	$	0.95	$	1.58
Diluted	$	0.25	$	0.93	$	1.54

Anti-dilutive shares excluded from calculations of diluted earnings per share	241,336		48,881		4,634

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities that are measured at fair value on a recurring basis consisted of the following, as of the dates indicated below:



	Fair value measurement using
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Fair value as of December 31, 2019
Financial liabilities:
Derivative instruments	$	—	$	1,757	$	—	$	1,757
Total financial liabilities	$	—	$	1,757	$	—	$	1,757

Fair value as of December 31, 2018
Financial assets:
Derivative instruments	$	—	$	2,260	$	—	$	2,260
Total financial assets	$	—	$	2,260	$	—	$	2,260

Fair value as of December 31, 2018
Financial liabilities:
Derivative instruments	$	—	$	186	$	—	$	186
Total financial liabilities	$	—	$	186	$	—	$	186

Property and Equipment and Software Development Costs (Tables)

12 Months Ended

Dec. 31, 2019

Property and equipment [Member]

Property, Plant and Equipment [Line Items]

Schedule of Property and Equipment

Property and equipment consisted of the following as of:



	Estimated useful life (years)	December 31,
(dollars in thousands)	Estimated useful life (years)	2019			2018
Equipment	3 - 5	$	4,512		$	4,243
Computer hardware	1 - 5	67,045			75,060
Computer software	1 - 5	35,726			34,294
Construction in progress	—	213			233
Furniture and fixtures	1 - 7	7,823			7,004
Leasehold improvements	Lesser of lease term or estimated useful life	24,295			26,795
Total property and equipment		139,614			147,629
Less: accumulated depreciation		(104,068		)	(107,598		)
Property and equipment, net		$	35,546		$	40,031

Software development [Member]

Property, Plant and Equipment [Line Items]

Schedule of Property and Equipment

Software development costs consisted of the following as of:



	Estimated useful life (years)	December 31,
(dollars in thousands)	Estimated useful life (years)	2019			2018
Software development costs	3 - 7	$	139,014		$	121,983
Less: accumulated amortization		(37,712		)	(46,884		)
Software development costs, net		$	101,302		$	75,099

Consolidated Financial Statement Details (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Components of Prepaid Expenses and Other Assets

Prepaid expenses and other assets



(dollars in thousands)	December 31, 2019		December 31, 2018
Costs of obtaining contracts⁽¹⁾⁽²⁾	$	90,764	$	85,590
Prepaid software maintenance and subscriptions	24,678		21,134
Unbilled accounts receivable	6,233		4,161
Prepaid insurance	1,585		1,087
Taxes, prepaid and receivable	849		2,055
Security deposits	885		1,020
Other assets	8,051		10,104
Total prepaid expenses and other assets	133,045		125,151
Less: Long-term portion	65,193		65,363
Prepaid expenses and other current assets	$	67,852	$	59,788


(1)	Amortization expense from costs of obtaining contracts was $38.1 million, $35.7 million and $35.8 million for the years ended December 31, 2019, 2018 and 2017, respectively, and is included in sales, marketing and customer success expense in our consolidated statements of comprehensive income.

(2)

The current portion of costs of obtaining contracts as of December 31, 2019 and 2018 was $33.0 million and $31.7 million, respectively.

Components of Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities



(dollars in thousands)	December 31, 2019		December 31, 2018
Operating lease liabilities, current portion⁽¹⁾	$	19,784	$	—
Accrued bonuses	$	24,617	$	14,868
Accrued commissions and salaries	6,980		9,934
Taxes payable	6,835		6,204
Customer credit balances	4,505		4,076
Unrecognized tax benefit	3,758		2,719
Accrued vacation costs	2,232		2,352
Accrued health care costs	2,399		1,497
Other liabilities	7,949		14,631
Total accrued expenses and other liabilities	79,059		56,281
Less: Long-term portion	5,742		9,388
Accrued expenses and other current liabilities	$	73,317	$	46,893


(1)	Upon adoption of ASU 2016-02 at January 1, 2019, we recognized lease liabilities for our operating leases. See Note 2 of these consolidated financial statements for details.

Components of Deferred Revenue

Deferred revenue



(dollars in thousands)	December 31, 2019		December 31, 2018
Recurring	$	302,751	$	286,960
One-time services and other	13,386		11,595
Total deferred revenue	316,137		298,555
Less: Long-term portion	1,802		2,564
Deferred revenue, current portion	$	314,335	$	295,991

Our opening and closing balances of deferred revenue were as follows:

Components of Other Income and Expense

Other income, net



	Years ended December 31,
(dollars in thousands)	2019		2018			2017
Interest income	$	2,802	$	2,008		$	993
Gain on derivative instrument	—		—			462
Loss on debt extinguishment	—		—			(299		)
Other income (expense), net	1,256		(905		)	1,104
Other income, net	$	4,058	$	1,103		$	2,260

Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Summary of Debt

The following table summarizes our debt balances and the related weighted average effective interest rates, which includes the effect of interest rate swap agreements.



	Debt balance at				Weighted average effective interest rate at
(dollars in thousands)	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Credit facility:
Revolving credit loans	$	187,000	$	100,000	3.11	%	4.13	%
Term loans	281,250		288,750		3.22	%	3.44	%
Total debt	468,250		388,750		3.18	%	3.61	%
Less: Unamortized discount and debt issuance costs	1,150		1,626
Less: Debt, current portion	7,500		7,500		3.05	%	3.77	%
Debt, net of current portion	$	459,600	$	379,624	3.18	%	3.61	%

Annual Maturities Related to Credit Facility

As of December 31, 2019, the required annual maturities related to the 2017 Credit Facility were as follows:



Years ending December 31, (dollars in thousands)	Annual maturities
2020	$	7,500
2021	7,500
2022	453,250
2023	—
2024	—
Thereafter	—
Total required maturities	$	468,250

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Values of Derivative Instruments

The fair values of our derivative instruments were as follows as of:



		Asset Derivatives					Liability Derivatives
(dollars in thousands)	Balance sheet location	December 31, 2019		December 31, 2018		Balance sheet location	December 31, 2019		December 31, 2018
Derivative instruments designated as hedging instruments:
Interest rate swaps, current portion	Prepaid expenses and other current assets	$	—	$	—	Accrued expenses and other current liabilities	$	—	$	—
Interest rate swaps, long-term portion	Other assets	—		2,260		Other liabilities	1,757		186
Total derivative instruments designated as hedging instruments		$	—	$	2,260		$	1,757	$	186

Effects of Derivative Instruments in Cash Flow Hedging Relationships

The effects of derivative instruments in cash flow hedging relationships were as follows:



	Gain (loss) recognized in accumulated other comprehensive loss as of			Location of gain (loss) reclassified from accumulated other comprehensive loss into income	Gain (loss) reclassified from accumulated other comprehensive loss into income
(dollars in thousands)	December 31, 2019				Year ended December 31, 2019
Interest rate swaps	$	(1,757	)	Interest expense	$	573

	December 31, 2018				Year ended December 31, 2018
Interest rate swaps	$	2,074		Interest expense	$	118

	December 31, 2017				Year ended December 31, 2017
Interest rate swaps	$	1,283		Interest expense	$	(293	)

Effects of Undesignated Derivative Instruments

The effects of undesignated derivative instruments during 2017 were as follows:



	Location of gain (loss) recognized in income on derivative	Gain (loss) recognized in income
(dollars in thousands)	Location of gain (loss) recognized in income on derivative	Year ended December 31, 2017
Foreign currency option contracts	Other income (expense), net	$	513
Foreign currency forward contracts	Other income (expense), net	$	(51	)
Total gain		$	462

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Components of Lease Expense

The components of lease expense for the year ended December 31, 2019, were as follows:



	Year ended December 31,
(dollars in thousands)	2019
Operating lease cost⁽¹⁾	$	27,519
Variable lease cost	4,035
Sublease income	(3,189		)
Net lease cost	$	28,365

(1)

Includes short-term lease costs, which were immaterial.

Schedule of Maturities of Operating Lease Liabilities

Maturities of our operating lease liabilities as of December 31, 2019 were as follows:



Years ending December 31, (dollars in thousands)	Operating leases⁽¹⁾
2020	$	25,999
2021	21,840
2022	17,187
2023	14,651
2024	7,790
Thereafter	74,168
Total lease payments	161,635
Less: Amount representing interest	46,227
Present value of future payments	$	115,408

(1)

Our maturities of our operating lease liabilities do not include payments related to Phase Two of our New Headquarters Facility, as that option had not been exercised as of December 31, 2019.

Schedule of Future Minimum Lease Commitments Related to Lease Agreements Under ASC 840



Years ending December 31, (dollars in thousands)	Operating leases
2019	$	20,808
2020	20,274
2021	16,924
2022	14,391
2023	12,923
Thereafter	81,755
Total minimum lease payments	$	167,075

Schedule Of Supplemental Balance Sheet Information Related To Leases

As of December 31, 2019, the weighted average remaining lease terms and discount rates were as follows:



(dollars in thousands)	December 31, 2019
Operating leases
Weighted average remaining lease term (years)	12.5
Weighted average discount rate	5.96	%

Our ROU assets and lease liabilities are included in the following line items in our consolidated balance sheet:



(dollars in thousands)	December 31, 2019
Operating leases
Operating lease right-of-use assets	$	104,400

Accrued expenses and other current liabilities	$	19,784
Operating lease liabilities, net of current portion	95,624
Total operating lease liabilities	$	115,408

Schedule Of Supplemental Cash Flow Information Related To Leases

Supplemental cash flow information related to leases during the year ended December 31, 2019, was as follows:



	Year ended December 31,
(dollars in thousands)	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,569
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases	102,245

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The following summarizes the components of income tax expense (benefit):



	Years ended December 31,
(dollars in thousands)	2019			2018			2017
Current taxes:
U.S. Federal	$	1,534		$	(1,088	)	$	2,565
U.S. State and local	613			1,182			(144		)
International	130			306			101
Total current taxes	2,277			400			2,522
Deferred taxes:
U.S. Federal	(1,724		)	659			(17,128		)
U.S. State and local	(2,235		)	45			398
International	359			(1,323		)	(1,084		)
Total deferred taxes	(3,600		)	(619		)	(17,814		)
Total income tax benefit	$	(1,323	)	$	(219	)	$	(15,292	)

Schedule of Income Before Provision for Income Taxes

The following summarizes the components of income before provision for income taxes:



	Years ended December 31,
(dollars in thousands)	2019		2018			2017
U.S.	$	5,149	$	47,532		$	58,547
International	5,436		(2,910		)	(206		)
Income before provision for income taxes	$	10,585	$	44,622		$	58,341

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between the effect of applying the federal statutory rate and the effective income tax rate used to calculate our income tax provision (benefit) is as follows:



	Years ended December 31,
	2019		2018		2017
Federal statutory rate	21.0	%	21.0	%	35.0	%
Effect of:
State income taxes, net of federal benefit	(1.7	)	4.1		1.8
Change in federal income tax rate applied to deferred tax balances	—		—		(43.1	)
Change in state income tax rate applied to deferred tax balances	(3.1	)	(0.4	)	—
Unrecognized tax benefit	4.4		(2.6	)	1.5
State credits, net of federal benefit	(15.4	)	(1.9	)	(1.4	)
Change in valuation reserve (primarily state credit reserves)	3.7		0.4		(1.0	)
Federal credits generated	(37.6	)	(10.4	)	(5.8	)
Foreign tax rate	(6.3	)	0.4		0.2
Acquisition costs	0.5		—		2.2
Section 162(m) limitation	30.8		4.2		2.5
Stock-based compensation	(20.2	)	(17.4	)	(18.9	)
GILTI inclusion	5.9		—		—
FDII benefit	(1.5	)	(0.7	)	—
Nondeductible meals, entertainment and transportation	11.3		2.6		0.8
Other	(4.3	)	0.2		—
Income tax benefit effective rate	(12.5	)%	(0.5	)%	(26.2	)%

Schedule of Deferred Tax Assets and Liabilities

The significant components of our deferred tax assets and liabilities were as follows:



	December 31,
(dollars in thousands)	2019			2018
Deferred tax assets relating to:
Federal and state and foreign net operating loss carryforwards	$	9,203		$	11,021
Federal, state and foreign tax credits	24,435			18,936
Operating leases	35,620			—
Intangible assets	1,560			1,041
Stock-based compensation	11,717			11,462
Accrued bonuses	1,713			973
Deferred revenue	682			854
Allowance for doubtful accounts	1,374			1,242
Other	7,487			5,607
Total deferred tax assets	93,791			51,136
Deferred tax liabilities relating to:
Intangible assets	(46,569		)	(43,700		)
Operating leases	(32,888		)	—
Fixed assets	(4,446		)	(4,444		)
Costs of obtaining contracts	(21,128		)	(19,573		)
Capitalized software development costs	(26,107		)	(19,469		)
Other	(315		)	(926		)
Total deferred tax liabilities	(131,453		)	(88,112		)
Valuation allowance	(6,453		)	(6,855		)
Net deferred tax liability	$	(44,115	)	$	(43,831	)

Summary of Changes in Deferred Tax Asset Valuation Allowance

The following table illustrates the change in our deferred tax asset valuation allowance:



Years ended December 31,	Balance at beginning of year		Acquisition- related change		Charges to expense			Balance at end of year
(dollars in thousands)
2019	$	6,855	$	—	$	(402	)	$	6,453
2018	7,205		16		(366		)	6,855
2017	6,994		—		211			7,205

Summary of Changes in Unrecognized Tax Benefits

The following table sets forth the change to our unrecognized tax benefit for the years ended December 31, 2019, 2018 and 2017:



	Years ended December 31,
(dollars in thousands)	2019			2018			2017
Balance at December 31, 2018	$	3,704		$	5,160		$	3,145
Increases from prior period positions	1,183			104			1,860
Decreases in prior year positions	(385		)	(413		)	(238		)
Increases from current period positions	456			58			404
Lapse of statute of limitations	(612		)	(1,205		)	(11		)
Balance at December 31, 2019	$	4,346		$	3,704		$	5,160

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Summary of Awards Outstanding by Each Award Type

The following table sets forth the number of awards outstanding for each award type as of:



	Outstanding at December 31,
Award type	2019	2018
Restricted stock awards	1,316,764	1,263,510
Restricted stock units	501,487	459,673
Stock appreciation rights	—	60,871
Stock options	206	836

Summary of Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense:



	Years ended December 31,
(in thousands)	2019		2018		2017
Included in cost of revenue:
Cost of recurring	$	1,879	$	2,464	$	1,627
Cost of one-time services and other	1,487		2,778		1,843
Total included in cost of revenue	3,366		5,242		3,470
Included in operating expenses:
Sales, marketing and customer success	11,203		9,285		6,381
Research and development	11,115		9,048		7,765
General and administrative	32,949		24,699		23,015
Total included in operating expenses	55,267		43,032		37,161
Total stock-based compensation expense	$	58,633	$	48,274	$	40,631

Summary of Unvested Restricted Stock Awards, Activity

The following table summarizes our unvested restricted stock awards as of December 31, 2019, and changes during the year then ended:



Restricted stock awards	Restricted stock awards		Weighted average grant-date fair value		Weighted average remaining contractual term (in years)	Aggregate intrinsic value⁽¹⁾ (in thousands)
Unvested at January 1, 2019	1,263,510		$	75.46
Granted	723,868		78.39
Vested	(557,749	)	67.26
Forfeited	(112,865	)	80.27
Unvested at December 31, 2019	1,316,764		79.92		8.4	$	104,814

(1)

The intrinsic value is calculated as the market value as of the end of the fiscal period.

Summary of Unvested Restricted Stock Units, Activity

The following table summarizes our unvested restricted stock units as of December 31, 2019, and changes during the year then ended:



Restricted stock units	Restricted stock units		Weighted average grant-date fair value		Weighted average remaining contractual term (in years)	Aggregate intrinsic value⁽¹⁾ (in thousands)
Unvested at January 1, 2019	459,673		$	79.78
Granted	302,719		77.90
Forfeited	(7,201	)	85.63
Vested	(253,704	)	75.68
Unvested at December 31, 2019	501,487		80.49		8.5	$	39,918

(1)

The intrinsic value is calculated as the market value as of the end of the fiscal period.

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Changes in Accumulated Other Comprehensive Loss by Component

The changes in accumulated other comprehensive loss by component, consisted of the following:



	Years ended December 31,
(in thousands)	2019			2018			2017
Accumulated other comprehensive loss, beginning of period	$	(5,110	)	$	(642	)	$	(604	)
By component:
Gains and losses on cash flow hedges:
Accumulated other comprehensive income (loss) balance, beginning of period	$	1,498		$	748		$	(3	)
Other comprehensive (loss) income before reclassifications, net of tax effects of $860, $(239) and $(374)	(2,399		)	670			574
Amounts reclassified from accumulated other comprehensive (loss) income to interest expense	(573		)	(118		)	293
Tax benefit included in provision for income taxes	151			31			(116		)
Total amounts reclassified from accumulated other comprehensive (loss) income	(422		)	(87		)	177
Net current-period other comprehensive (loss) income	(2,821		)	583			751
Reclassification upon adoption of ASU 2018-02	—			167			—
Accumulated other comprehensive (loss) income balance, end of period	$	(1,323	)	$	1,498		$	748
Foreign currency translation adjustment:
Accumulated other comprehensive loss balance, beginning of period	$	(6,608	)	$	(1,390	)	$	(601	)
Translation adjustments	2,641			(5,218		)	(789		)
Accumulated other comprehensive loss balance, end of period	(3,967		)	(6,608		)	(1,390		)
Accumulated other comprehensive loss, end of period	$	(5,290	)	$	(5,110	)	$	(642	)

Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Long-Lived Assets By Geographic Region

The following table presents long-lived assets by geographic region based on the location of the assets.



	Years ended December 31,
(dollars in thousands)	2019		2018
United States	$	32,606	$	37,015
Other countries	2,940		3,016
Total property and equipment	$	35,546	$	40,031

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Contract Balances

Deferred revenue



(dollars in thousands)	December 31, 2019		December 31, 2018
Recurring	$	302,751	$	286,960
One-time services and other	13,386		11,595
Total deferred revenue	316,137		298,555
Less: Long-term portion	1,802		2,564
Deferred revenue, current portion	$	314,335	$	295,991

Our opening and closing balances of deferred revenue were as follows:

Disaggregation of Revenue

The following table presents our revenue by geographic area based on the address of our customers:



	Years ended December 31,
(dollars in thousands)	2019		2018		2017
United States	$	775,308	$	727,366	$	706,904
Other countries	125,115		121,240		81,583
Total revenue	$	900,423	$	848,606	$	788,487

The following table presents our revenue by market group:



	Years ended December 31,
(dollars in thousands)	2019		2018⁽²⁾		2017⁽²⁾
GMG	$	378,384	$	362,585	$	353,166
EMG⁽¹⁾	392,258		360,873		352,034
IMG	126,511		123,522		83,217
Other	3,270		1,626		70
Total revenue	$	900,423	$	848,606	$	788,487


(1)	The operating results of YourCause have been included in EMG from the date of acquisition. See Note 3 to these consolidated financial statements for details regarding this acquisition.

(2)

Quarterly Results (unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information



(dollars in thousands, except per share data)	December 31, 2019			September 30, 2019		June 30, 2019		March 31, 2019
Total revenue	$	237,839		$	221,120	$	225,634	$	215,830
Gross profit	121,302			119,323		124,827		116,547
Income from operations	3,586			7,883		13,491		2,185
Income before provision for income taxes	(1,262		)	4,930		9,873		(2,956		)
Net income	1,324			4,566		7,140		(1,122		)
Earnings per share
Basic	$	0.03		$	0.10	$	0.15	$	(0.02	)
Diluted	0.03			0.09		0.15		(0.02		)

(dollars in thousands, except per share data)	December 31, 2018			September 30, 2018		June 30, 2018		March 31, 2018
Total revenue	$	221,218		$	209,532	$	213,672	$	204,184
Gross profit	117,922			114,295		118,500		116,147
Income from operations	14,679			15,783		11,374		17,581
Income before provision for income taxes	11,485			11,496		7,417		14,224
Net income	9,334			11,164		6,592		17,751
Earnings per share
Basic	$	0.20		$	0.24	$	0.14	$	0.38
Diluted	0.19			0.23		0.14		0.37

Note: The individual amounts for each quarter may not sum to full year totals due to rounding.

Restructuring (Tables)

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Costs

The following table summarizes our facilities optimization restructuring costs as of December 31, 2019:



	Cumulative costs incurred as of		Costs incurred during the year ended⁽¹⁾		Cumulative costs incurred as of
(in thousands)	December 31, 2018		December 31, 2019
By component:
Contract termination costs	$	4,176	$	4,906	$	9,082
Other costs	1,208		902		2,110
Total	$	5,384	$	5,808	$	11,192

(1)

Includes $3.8 million of operating lease ROU asset impairment costs.

Schedule of Restructuring Reserve by Type of Cost

The change in our liability related to our facilities optimization restructuring during the twelve months ended December 31, 2019, consisted of the following:



	Accrued at		Increases for incurred costs⁽¹⁾		Written off upon adoption of ASU 2016-02⁽²⁾			Costs paid			Accrued at
(in thousands)	December 31, 2018		Increases for incurred costs⁽¹⁾		Written off upon adoption of ASU 2016-02⁽²⁾			Costs paid			December 31, 2019
By component:
Contract termination costs	$	1,865	$	4,906	$	(1,656	)	$	(5,115	)	$	—
Other costs	50		902		—			(952		)	—
Total	$	1,915	$	5,808	$	(1,656	)	$	(6,067	)	$	—


(1)	Includes $3.8 million of operating lease ROU asset impairment costs.

(2)

Organization (Details)	Dec. 31, 2019 Customers
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Approximate number of customers distributed across verticals	45,000

Basis of Presentation (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Jan. 01, 2019

Basis of Presentation [Line Items]

Operating lease liabilities

$ 115,408

^[1]

$ 121,600

Operating lease right-of-use assets

$ 104,400

$ 0

$ 113,400

Contract term of recurring revenue contracts at contract inception (years)

3 years

Expected period of benefit

5 years

Net foreign currency loss (gain)

900

$ (1,100)

Advertising costs

$ 3,100

4,000

2,400

Impairment of goodwill

Impairment charges against certain finite-lived intangible assets

900

Capitalized software development costs

Impairment of capitalized software dev costs

Impairment of long-lived assets

$ 0

Minimum [Member]

Basis of Presentation [Line Items]

Contract term of recurring revenue contracts at renewal (years)

1 year

Maximum [Member]

Basis of Presentation [Line Items]

Contract term of recurring revenue contracts at renewal (years)

3 years

Software development [Member] | Minimum [Member]

Basis of Presentation [Line Items]

Software development costs, estimated useful life (years)

3 years

Software development [Member] | Maximum [Member]

Basis of Presentation [Line Items]

Software development costs, estimated useful life (years)

7 years

[1]	Our maturities of our operating lease liabilities do not include payments related to Phase Two of our New Headquarters Facility, as that option had not been exercised as of December 31, 2019.

Basis of Presentation (Finite-Lived Intangible Assets by Major Class) (Details)

12 Months Ended

Dec. 31, 2019

Customer relationships [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, amortization method

Straight-line and accelerated

^[1]

Customer relationships [Member] | Minimum [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, useful life

8 years

Customer relationships [Member] | Maximum [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, useful life

17 years

Marketing assets [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, amortization method

Straight-line

Marketing assets [Member] | Minimum [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, useful life

2 years

Marketing assets [Member] | Maximum [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, useful life

15 years

Acquired software and technology [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, amortization method

Straight-line and accelerated

Acquired software and technology [Member] | Minimum [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, useful life

5 years

Acquired software and technology [Member] | Maximum [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, useful life

14 years

Non-compete agreements [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, amortization method

Straight-line

Non-compete agreements [Member] | Minimum [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, useful life

1 year

Non-compete agreements [Member] | Maximum [Member]

Finite-Lived Intangible Assets [Line Items]

Finite-lived intangible assets, useful life

5 years

[1]	Certain of the customer relationships and acquired software and technology assets are amortized on an accelerated basis.

Basis of Presentation (Changes in Allowance for Sales Returns and Doubtful Accounts) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for sales returns [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of year	$ 3,377	$ 4,400	$ 2,704
Provision/adjustment	6,232	4,952	10,511
Write-off	(5,963)	(5,975)	(8,815)
Balance at end of year	3,646	3,377	4,400
Allowance for doubtful accounts [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of year	1,345	741	587
Provision/adjustment	2,476	2,446	1,148
Write-off	(1,938)	(1,842)	(994)
Balance at end of year	$ 1,883	$ 1,345	$ 741

Business Combinations (Details) £ in Millions, $ in Millions	Jan. 02, 2019 USD ($)	Apr. 30, 2018 USD ($)	Oct. 02, 2017 GBP (£)	Oct. 02, 2017 USD ($)	Jun. 02, 2017 USD ($)	Apr. 03, 2017 USD ($)
YourCause [Member]
Business Acquisition [Line Items]
Total cash consideration paid for the acquisition	$ 157.7
Estimated fair value of accounts receivable acquired	4.2
Goodwill, tax deductible amount	$ 54.6
Reeher [Member]
Business Acquisition [Line Items]
Total cash consideration paid for the acquisition		$ 41.2
JustGiving [Member]
Business Acquisition [Line Items]
Total cash consideration paid for the acquisition			£ 102.4	$ 137.2
AcademicWorks [Member]
Business Acquisition [Line Items]
Total cash consideration paid for the acquisition						$ 52.1
Revolving credit facility [Member]
Business Acquisition [Line Items]
Proceeds from lines of credit					$ 110.0
Revolving credit facility [Member] \| JustGiving [Member]
Business Acquisition [Line Items]
Proceeds from lines of credit				$ 138.7

Business Combinations (Purchase Price Allocation) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 02, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 634,088		$ 545,213
YourCause [Member]
Business Acquisition [Line Items]
Net working capital, excluding deferred revenue		$ 3,711
Other long-term assets		2,574
Identifiable intangible assets		74,690
Deferred tax liability		(4,660)
Deferred revenue		(4,300)
Other long-term liabilities		(1,650)
Goodwill		87,350
Total purchase price		$ 157,715

Business Combinations (Acquired Intangible Assets) (Details) - YourCause [Member] $ in Thousands	Jan. 02, 2019 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 74,690
Weighted average amortization period (in years)	13 years
Acquired technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 47,800
Weighted average amortization period (in years)	12 years
Customer relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 25,900
Weighted average amortization period (in years)	15 years
Marketing assets [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 830
Weighted average amortization period (in years)	2 years
Non-compete agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 160
Weighted average amortization period (in years)	0 years

Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment charges against certain finite-lived intangible assets	$ 900	$ 0	$ 0

Goodwill and Other Intangible Assets (Change in Goodwill) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Goodwill [Roll Forward]
Balance at December 31, 2018	$ 545,213
Effect of foreign currency translation	1,525
Balance at December 31, 2019	634,088
YourCause [Member]
Goodwill [Roll Forward]
Additions related to current year business combinations	$ 87,350

Goodwill And Other Intangible Assets (Fair Values Of Intangible Assets Acquired In Various Business Combinations By Class) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Schedule of Acquired Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, gross carrying amount	$ 556,491	$ 547,221
Finite-lived intangible assets, accumulated amortization	(238,596)	(257,204)
Intangible assets, net (excluding goodwill)	317,895	291,617
Marketing assets [Member]
Schedule of Acquired Intangible Assets by Major Class [Line Items]
Indefinite-lived intangible assets (excluding goodwill), gross carrying amount	0	1,600
Customer relationships [Member]
Schedule of Acquired Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, gross carrying amount	286,951	280,309
Finite-lived intangible assets, accumulated amortization	(118,031)	(116,648)
Marketing assets [Member]
Schedule of Acquired Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, gross carrying amount	34,246	48,484
Finite-lived intangible assets, accumulated amortization	(3,648)	(16,395)
Acquired software and technology [Member]
Schedule of Acquired Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, gross carrying amount	233,094	211,654
Finite-lived intangible assets, accumulated amortization	(115,048)	(118,268)
Non-compete agreements [Member]
Schedule of Acquired Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, gross carrying amount	2,200	2,499
Finite-lived intangible assets, accumulated amortization	(1,869)	(1,618)
Database [Member]
Schedule of Acquired Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, gross carrying amount	0	4,275
Finite-lived intangible assets, accumulated amortization	$ 0	$ (4,275)

Goodwill and Other Intangible Assets (Summary of Amortization Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Amortization of Intangible Assets Acquired by Income Statement Location [Line Items]
Amortization	$ 50,085	$ 47,077	$ 43,370
Cost of recurring [Member]
Amortization of Intangible Assets Acquired by Income Statement Location [Line Items]
Amortization	42,565	39,877	37,557
Cost of one-time services and other [Member]
Amortization of Intangible Assets Acquired by Income Statement Location [Line Items]
Amortization	2,204	2,356	2,542
Total included in cost of revenue [Member]
Amortization of Intangible Assets Acquired by Income Statement Location [Line Items]
Amortization	44,769	42,233	40,099
Included in operating expenses [Member]
Amortization of Intangible Assets Acquired by Income Statement Location [Line Items]
Amortization	$ 5,316	$ 4,844	$ 3,271

Goodwill and Other Intangible Assets (Future Amortization Expense for Finite-Lived Intangible Assets) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Future amortization expense for finite-lived intangible assets:
2020	$ 41,544
2021	37,010
2022	34,671
2023	33,665
2024	33,150
Total	$ 180,040

Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Net income	$ 1,324	$ 4,566	$ 7,140	$ (1,122)	$ 9,334	$ 11,164	$ 6,592	$ 17,751	$ 11,908	$ 44,841	$ 73,633
Weighted average common shares									47,695,383	47,206,669	46,669,440
Stock-based awards									616,888	838,415	1,106,262
Weighted average common shares assuming dilution									48,312,271	48,045,084	47,775,702
Earnings (Loss) Per Share, Basic and Diluted [Abstract]
Basic earnings per share	$ 0.03	$ 0.10	$ 0.15	$ (0.02)	$ 0.20	$ 0.24	$ 0.14	$ 0.38	$ 0.25	$ 0.95	$ 1.58
Diluted earnings per share	$ 0.03	$ 0.09	$ 0.15	$ (0.02)	$ 0.19	$ 0.23	$ 0.14	$ 0.37	$ 0.25	$ 0.93	$ 1.54
Shares excluded from calculations of diluted earnings per share									241,336	48,881	4,634

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Fair Value Measurements Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Restructuring reserve, period increase (decrease), related to impairments of operating lease right-of-use assets	$ 3,800
Impairment charges against certain property and equipment assets	1,400
Impairment charges against certain finite-lived intangible assets	$ 900	$ 0	$ 0

Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair value measurements, recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	$ 1,757	$ 186
Total financial liabilities	1,757	186
Derivative assets		2,260
Total financial assets		2,260
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Total financial liabilities	0	0
Derivative assets		0
Total financial assets		0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	1,757	186
Total financial liabilities	1,757	186
Derivative assets		2,260
Total financial assets		2,260
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Total financial liabilities	$ 0	0
Derivative assets		0
Total financial assets		$ 0

Property and Equipment and Software Development Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation	$ 15.0	$ 15.9	$ 17.8
Impairment charges against certain property and equipment assets	1.4
Software development costs, amortization	$ 21.0	$ 16.6	$ 12.8

Property and Equipment and Software Development Costs (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 139,614	$ 147,629
Less: accumulated depreciation	(104,068)	(107,598)
Property and equipment, net	35,546	40,031
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,512	$ 4,243
Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life (years)	3 years
Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life (years)		5 years
Computer hardware [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 67,045	$ 75,060
Computer hardware [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life (years)	1 year
Computer hardware [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life (years)		5 years
Computer software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 35,726	$ 34,294
Computer software [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life (years)	1 year
Computer software [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life (years)		5 years
Construction in progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 213	$ 233
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,823	$ 7,004
Furniture and fixtures [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life (years)	1 year
Furniture and fixtures [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life (years)		7 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 24,295	$ 26,795

Property and Equipment and Software Development Costs (Schedule of Software Development Costs) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Software development costs, gross	$ 139,014	$ 121,983
Less: accumulated amortization	(37,712)	(46,884)
Software development costs, net	$ 101,302	$ 75,099
Software development [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Software development costs, estimated useful life (years)	3 years
Software development [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Software development costs, estimated useful life (years)	7 years

Consolidated Financial Statement Details (Components of Prepaid Expenses and Other Assets) (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Costs of obtaining contracts

^[1],[2]

$ 90,764

$ 85,590

Prepaid software maintenance and subscriptions

24,678

21,134

Unbilled accounts receivable

6,233

4,161

Prepaid insurance

1,585

1,087

Taxes, prepaid and receivable

849

2,055

Security deposits

885

1,020

Other assets

8,051

10,104

Total prepaid expenses and other assets

133,045

125,151

Less: Long-term portion

65,193

65,363

Prepaid expenses and other current assets

67,852

59,788

Amortization expense from costs of obtaining contracts

38,100

35,700

$ 35,800

Cost of obtaining contracts, current portion

$ 33,000

$ 31,700

[1]	The current portion of costs of obtaining contracts as of December 31, 2019 and 2018 was $33.0 million and $31.7 million, respectively.
[2]	Amortization expense from costs of obtaining contracts was $38.1 million, $35.7 million and $35.8 million for the years ended December 31, 2019, 2018 and 2017, respectively

Consolidated Financial Statement Details (Components of Accrued Expenses and Other Liabilities) (Details) - USD ($)
$ in Thousands

Dec. 31, 2019

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operating lease liabilities, current portion

$ 19,784

^[1]

$ 0

Accrued bonuses

24,617

14,868

Accrued commissions and salaries

6,980

9,934

Taxes payable

6,835

6,204

Customer credit balances

4,505

4,076

Unrecognized tax benefit

3,758

2,719

Accrued vacation costs

2,232

2,352

Accrued health care costs

2,399

1,497

Other liabilities

7,949

14,631

Total accrued expenses and other liabilities

79,059

56,281

Less: Long-term portion

5,742

9,388

Accrued expenses and other current liabilities

$ 73,317

$ 46,893

[1]	Upon adoption of ASU 2016-02 at January 1, 2019, we recognized lease liabilities for our operating leases. See Note 2 of these consolidated financial statements for details.

Consolidated Financial Statement Details (Components of Deferred Revenue) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 316,137	$ 298,555
Less: Long-term portion	1,802	2,564
Deferred revenue, current portion	314,335	295,991
Recurring [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	302,751	286,960
One-time services and other [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 13,386	$ 11,595

Consolidated Financial Statement Details (Components of Other Income and Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest income	$ 2,802	$ 2,008	$ 993
Gain on derivative instrument	0	0	462
Loss on debt extinguishment	0	0	(299)
Other income (expense), net	1,256	(905)	1,104
Other income, net	$ 4,058	$ 1,103	$ 2,260

Debt (Details) $ in Thousands			1 Months Ended		12 Months Ended
Debt (Details) $ in Thousands	Jan. 02, 2019 USD ($)	Jun. 02, 2017 USD ($)	Dec. 31, 2019 USD ($)	Feb. 28, 2014 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		$ 700,000		$ 325,000
Debt instrument, term		5 years		5 years
Change in present value of future cash flows to financing investors				10.00%
Payment of financing costs		$ 3,100			$ 0	$ 0	$ 3,085
Capitalized financing costs to be amortized over term of facility		1,000
Total deferred financing costs included in other assets			$ 600		600	900
Aggregate financing costs related to debt discount and debt issuance costs		1,800	(1,150)		$ (1,150)	$ (1,626)
Commitment fee on unused portion of revolving credit facility					0.20%
Line of credit facility, available increase capacity, amount		$ 200,000
Line of credit facility, current borrowing capacity			$ 209,600		$ 209,600
Minimum [Member]
Line of Credit Facility [Line Items]
Commitment fee on unused portion of revolving credit facility					0.15%
Maximum [Member]
Line of Credit Facility [Line Items]
Commitment fee on unused portion of revolving credit facility					0.25%
Net Leverage Ratio		3.00
Federal funds rate option [Member]
Line of Credit Facility [Line Items]
Credit facility, variable interest rate					0.50%
Eurocurrency base rate option [Member]
Line of Credit Facility [Line Items]
Credit facility, variable interest rate					1.00%
Base rate margin [Member] \| Minimum [Member]
Line of Credit Facility [Line Items]
Credit facility, basis spread on variable rate					0.00%
Base rate margin [Member] \| Maximum [Member]
Line of Credit Facility [Line Items]
Credit facility, basis spread on variable rate					0.75%
Eurocurrency rate margin [Member] \| Minimum [Member]
Line of Credit Facility [Line Items]
Credit facility, basis spread on variable rate					1.00%
Eurocurrency rate margin [Member] \| Maximum [Member]
Line of Credit Facility [Line Items]
Credit facility, basis spread on variable rate					1.75%
Revolving credit loans [Member]
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		$ 400,000
Proceeds from lines of credit		110,000
Term loans [Member]
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		300,000
Proceeds from lines of credit		300,000
Standby letters of credit [Member]
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		50,000
Swingline loans [Member]
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		50,000
Multicurrency borrowings [Member]
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		$ 100,000
YourCause [Member]
Line of Credit Facility [Line Items]
Total cash consideration paid for the acquisition	$ 157,700
Loans payable [Member]
Line of Credit Facility [Line Items]
Debt instrument, term			4 years
Other debt, face amount			$ 2,200		$ 2,200

Debt (Summary of Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jun. 02, 2017
Line of Credit Facility [Line Items]
Debt, gross	$ 468,250	$ 388,750
Less: Unamortized discount and debt issuance costs	1,150	1,626	$ (1,800)
Less: Debt, current portion	7,500	7,500
Debt, net of current portion	$ 459,600	$ 379,624
Weighted average effective interest rate	3.18%	3.61%
Revolving credit loans [Member]
Line of Credit Facility [Line Items]
Debt, gross	$ 187,000	$ 100,000
Weighted average effective interest rate	3.11%	4.13%
Term loans [Member]
Line of Credit Facility [Line Items]
Debt, gross	$ 281,250	$ 288,750
Weighted average effective interest rate	3.22%	3.44%
Short-term debt [Member]
Line of Credit Facility [Line Items]
Weighted average effective interest rate	3.05%	3.77%
Long-term debt [Member]
Line of Credit Facility [Line Items]
Weighted average effective interest rate	3.18%	3.61%

Debt (Annual Maturities Related to Credit Facility) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Debt Disclosure [Abstract]
2020	$ 7,500
2021	7,500
2022	453,250
2023	0
2024	0
Thereafter	0
Total required maturities	$ 468,250

Derivative Instruments (Details) $ in Thousands, £ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jun. 30, 2019 USD ($)	Feb. 28, 2018 USD ($)	Sep. 27, 2017 GBP (£)	Jul. 31, 2017 USD ($)	Jun. 28, 2017 GBP (£)
Derivative [Line Items]
Proceeds from settlement of derivative instruments	$ 0	$ 0	$ 1,030
Accumulated other comprehensive income expected to be reclassified into earnings within next 12 months	1,000
Ineffective portion of interest rate swap(s)	0	0	0
Undesignated derivative instruments			$ (462)
July 2017 Swap [Member]
Derivative [Line Items]
Derivative, notional amount							$ 150,000
February 2018 Swap [Member]
Derivative [Line Items]
Derivative, notional amount					$ 50,000
June 2019 Swap [Member]
Derivative [Line Items]
Derivative, notional amount				$ 75,000
June 2017 Foreign Currency Option [Member]
Derivative [Line Items]
Derivative, notional amount \| £								£ 100.0
October 2017 Foreign Currency Forward [Member]
Derivative [Line Items]
Derivative, notional amount \| £						£ 103.5
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, fair value, net	0	0
Undesignated derivative instruments	$ 0	$ 0

Derivative Instruments (Fair Value of Derivative Instruments) (Details) - Designated as hedging instrument [Member] - Interest rate swap [Member] - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 0	$ 2,260
Derivative liabilities, fair value	1,757	186
Prepaid expenses and other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets, current portion	0	0
Accrued expenses and other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities, current portion	0	0
Other assets [Member]
Derivatives, Fair Value [Line Items]
Derivative assets, long-term portion	0	2,260
Other liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities, long-term portion	$ 1,757	$ 186

Derivative Instruments (Effects of Derivative Instruments in Cash Flow Hedging Relationships) (Details) - Interest rate swap [Member] - Cash flow hedging [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in accumulated other comprehensive loss	$ (1,757)	$ 2,074	$ 1,283
Interest expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified from accumulated other comprehensive loss into income	$ 573	$ 118	$ (293)

Derivative Instruments (Effects of Undesignated Derivative Instruments) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Derivative [Line Items]
Gain (loss) recognized in income	$ 462
Foreign currency option contracts [Member]
Derivative [Line Items]
Gain (loss) recognized in income	513
Foreign currency forward contracts [Member]
Derivative [Line Items]
Gain (loss) recognized in income	$ (51)

Commitments and Contingencies (Details) $ in Millions	12 Months Ended
Commitments and Contingencies (Details) $ in Millions	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	May 31, 2016 ft² lease	May 04, 2012 lease	Oct. 31, 2008 lease
Lessee, Lease, Description [Line Items]
Operating lease, lease not yet commenced, expense	$ 0.8
Operating lease, lease not yet commenced, term of contract	3 years
Restructuring reserve, period increase (decrease), related to impairments of operating lease right-of-use assets	$ 3.8
Rent expense under ASC 840		$ 22.2	$ 17.1
SC [Member] \| Building [Member] \| New HQ Facility [Member]
Lessee, Lease, Description [Line Items]
Lease agreement renewal term				5 years
Rentable square feet (square foot) \| ft²				172,000
Number of renewal options (leases) \| lease				4
SC [Member] \| Building [Member] \| Customer Operations Center [Member]
Lessee, Lease, Description [Line Items]
Lease agreement renewal term						5 years
Number of renewal options (leases) \| lease						2
TX [Member] \| Building [Member]
Lessee, Lease, Description [Line Items]
Lease agreement renewal term					5 years
Number of renewal options (leases) \| lease					2
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessee, operating lease, term of contract (less than)	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessee, operating lease, term of contract (less than)	19 years
Lease agreement renewal term	5 years
Third-party technology [Member]
Long-term Purchase Commitment [Line Items]
Remaining aggregate minimum purchase commitment	$ 91.7

Commitments and Contingencies Commitments and Contingencies (Components of Lease Expense) (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2019

USD ($)

Commitments and Contingencies Disclosure [Abstract]

Operating lease cost

$ 27,519

^[1]

Variable lease cost

4,035

Sublease income

(3,189)

Net lease cost

$ 28,365

[1]	Includes short-term lease costs, which were immaterial.

Commitments and Contingencies Commitments and Contingencies (Schedule of Maturities of Operating Lease Liabilities) (Details) - USD ($)
$ in Thousands

Dec. 31, 2019

Jan. 01, 2019

Commitments and Contingencies Disclosure [Abstract]

2020

^[1]

$ 25,999

2021

^[1]

21,840

2022

^[1]

17,187

2023

^[1]

14,651

2024

^[1]

7,790

Thereafter

^[1]

74,168

Total lease payments

^[1]

161,635

Less: Amount representing interest

^[1]

46,227

Present value of future payments

$ 115,408

^[1]

$ 121,600

[1]	Our maturities of our operating lease liabilities do not include payments related to Phase Two of our New Headquarters Facility, as that option had not been exercised as of December 31, 2019.

Commitments and Contingencies (Schedule of Future Minimum Lease Commitments Related to Lease Agreements Under ASC 840) (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 20,808
2020	20,274
2021	16,924
2022	14,391
2023	12,923
Thereafter	81,755
Total minimum lease payments	$ 167,075

Commitments and Contingencies Commitments and Contingencies (Schedule Of Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($)
$ in Thousands

Dec. 31, 2019

Jan. 01, 2019

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Operating lease right-of-use assets

$ 104,400

$ 113,400

$ 0

Operating lease liabilities, current portion

19,784

^[1]

Operating lease liabilities, net of current portion

95,624

$ 0

Total operating lease liabilities

$ 115,408

^[2]

$ 121,600

Weighted average remaining lease term (years)

12 years 6 months

Weighted average discount rate

5.96%

[1]	Upon adoption of ASU 2016-02 at January 1, 2019, we recognized lease liabilities for our operating leases. See Note 2 of these consolidated financial statements for details.
[2]	Our maturities of our operating lease liabilities do not include payments related to Phase Two of our New Headquarters Facility, as that option had not been exercised as of December 31, 2019.

Commitments and Contingencies Commitments and Contingencies (Schedule Of Supplemental Cash Flow Information Related To Leases) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating cash flows from operating leases	$ 24,569
Right-of-use assets obtained in exchange for lease obligations (non-cash), operating leases	$ 102,245

Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Income Taxes [Line Items]
Unrecognized tax benefit that, if recognized, would favorably affect the effective tax rate	$ 3.9
Accrued interest and penalties	1.0	$ 0.7
Reasonably possible decrease in unrecognized tax benefits	1.4
Domestic Tax Authority [Member]
Income Taxes [Line Items]
Operating loss carryforwards	21.4
Tax credit carryforwards	9.8
Foreign Tax Authority [Member]
Income Taxes [Line Items]
Operating loss carryforwards	19.3
State and Local Jurisdiction [Member]
Income Taxes [Line Items]
Operating loss carryforwards	23.8
Tax credit carryforwards	$ 16.0

Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current taxes:
U.S. Federal	$ 1,534	$ (1,088)	$ 2,565
U.S. State and local	613	1,182	(144)
International	130	306	101
Total current taxes	2,277	400	2,522
Deferred taxes:
U.S. Federal	(1,724)	659	(17,128)
U.S. State and local	(2,235)	45	398
International	359	(1,323)	(1,084)
Total deferred taxes	(3,600)	(619)	(17,814)
Total income tax benefit	$ (1,323)	$ (219)	$ (15,292)

Income Taxes (Schedule of Income Before Provision for Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
U.S.									$ 5,149	$ 47,532	$ 58,547
International									5,436	(2,910)	(206)
Income before provision for income taxes	$ (1,262)	$ 4,930	$ 9,873	$ (2,956)	$ 11,485	$ 11,496	$ 7,417	$ 14,224	$ 10,585	$ 44,622	$ 58,341

Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%	35.00%
Effect of:
State income taxes, net of federal benefit	(1.70%)	4.10%	1.80%
Unrecognized tax benefit	4.40%	(2.60%)	1.50%
State credits, net of federal benefit	(15.40%)	(1.90%)	(1.40%)
Change in valuation reserve (primarily state credit reserves)	3.70%	0.40%	(1.00%)
Federal credits generated	(37.60%)	(10.40%)	(5.80%)
Foreign tax rate	(6.30%)	0.40%	0.20%
Acquisition costs	0.50%	0.00%	2.20%
Section 162(m) limitation	30.80%	4.20%	2.50%
Stock-based compensation	(20.20%)	(17.40%)	(18.90%)
GILTI inclusion	5.90%	0.00%	0.00%
FDII benefit	(1.50%)	(0.70%)	0.00%
Nondeductible meals, entertainment and transportation	11.30%	2.60%	0.80%
Other	(4.30%)	0.20%	0.00%
Income tax benefit effective rate	(12.50%)	(0.50%)	(26.20%)
Domestic Tax Authority [Member]
Effect of:
Change in income tax rate applied to deferred tax balances	0.00%	0.00%	(43.10%)
State and Local Jurisdiction [Member]
Effect of:
Change in income tax rate applied to deferred tax balances	(3.10%)	(0.40%)	0.00%

Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets relating to:
Federal and state and foreign net operating loss carryforwards	$ 9,203	$ 11,021
Federal, state and foreign tax credits	24,435	18,936
Operating leases	35,620	0
Intangible assets	1,560	1,041
Stock-based compensation	11,717	11,462
Accrued bonuses	1,713	973
Deferred revenue	682	854
Allowance for doubtful accounts	1,374	1,242
Other	7,487	5,607
Total deferred tax assets	93,791	51,136
Deferred tax liabilities relating to:
Intangible assets	(46,569)	(43,700)
Operating leases	(32,888)	0
Fixed assets	(4,446)	(4,444)
Costs of obtaining contracts	(21,128)	(19,573)
Capitalized software development costs	(26,107)	(19,469)
Other	(315)	(926)
Total deferred tax liabilities	(131,453)	(88,112)
Valuation allowance	(6,453)	(6,855)	$ (7,205)	$ (6,994)
Net deferred tax liability	$ (44,115)	$ (43,831)

Income Taxes (Summary of Changes in Deferred Tax Asset Valuation Allowance) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Balance at beginning of year	$ 6,855	$ 7,205	$ 6,994
Acquisition-related change	0	16	0
Charges to expense	(402)	(366)	211
Balance at end of year	$ 6,453	$ 6,855	$ 7,205

Income Taxes (Summary of Changes in Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Balance at December 31, 2018	$ 3,704	$ 5,160	$ 3,145
Increases from prior period positions	1,183	104	1,860
Decreases in prior year positions	(385)	(413)	(238)
Increases from current period positions	456	58	404
Lapse of statute of limitations	(612)	(1,205)	(11)
Balance at December 31, 2019	$ 4,346	$ 3,704	$ 5,160

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of authorized stock-based awards available (in shares)	7,558,625
Unvested awards, compensation cost not yet recognized	$ 88.0
Unvested awards, compensation cost not yet recognized, period of recognition (in years)	1 year 8 months 12 days
Restricted stock awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term (in years)	10 years
Vesting period (in years)	4 years
Restricted stock vested, total fair value	$ 37.5	$ 24.2	$ 19.4
Restricted stock granted, weighted average grant date fair value	$ 78.39	$ 94.51	$ 74.08
Restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term (in years)	10 years
Vesting period (in years)	3 years
Restricted stock vested, total fair value	$ 19.2	$ 13.7	$ 9.4
Restricted stock granted, weighted average grant date fair value	$ 77.90	$ 95.59	$ 72.19
Stock appreciation rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term (in years)	7 years
Vesting period (in years)	4 years
Exercised, number	(60,871)
Exercised, weighted average exercise price	$ 22.24
Options exercised, total intrinsic value	$ 3.6	$ 12.4	$ 14.2
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term (in years)	10 years

Stock-Based Compensation (Summary of Awards Outstanding by Each Award Type) (Details) - shares	Dec. 31, 2019	Dec. 31, 2018
Restricted stock awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, number	1,316,764	1,263,510
Restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, number	501,487	459,673
Stock appreciation rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, number	0	60,871
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, number	206	836

Stock-Based Compensation (Summary of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	$ 58,633	$ 48,274	$ 40,631
Cost of recurring [Member]
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	1,879	2,464	1,627
Cost of one-time services and other [Member]
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	1,487	2,778	1,843
Total included in cost of revenue [Member]
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	3,366	5,242	3,470
Sales, marketing and customer success [Member]
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	11,203	9,285	6,381
Research and development [Member]
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	11,115	9,048	7,765
General and administrative [Member]
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	32,949	24,699	23,015
Total included in operating expenses [Member]
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated stock-based compensation expense	$ 55,267	$ 43,032	$ 37,161

Stock-Based Compensation (Summary of Unvested Restricted Stock Awards, Activity) (Details) - Restricted stock awards [Member] - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Unvested, number, beginning of period

1,263,510

Unvested, weighted average grant date fair value, beginning of period

$ 75.46

Granted, number

723,868

Granted, weighted average grant date fair value

$ 78.39

$ 94.51

$ 74.08

Vested, number

(557,749)

Vested, weighted average grant date fair value

$ 67.26

Forfeited, number

(112,865)

Forfeited, weighted average grant date fair value

$ 80.27

Unvested, number, end of period

1,316,764

1,263,510

Unvested, weighted average grant date fair value, end of period

$ 79.92

$ 75.46

Unvested, weighted average remaining contractual term

8 years 4 months 24 days

Unvested, aggregate intrinsic value

^[1]

$ 104,814

[1]	The intrinsic value is calculated as the market value as of the end of the fiscal period.

Stock-Based Compensation (Summary of Unvested Restricted Stock Units, Activity) (Details) - Restricted stock units [Member] - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Unvested, number, beginning of period

459,673

Unvested, weighted average grant date fair value, beginning of period

$ 79.78

Granted, number

302,719

Granted, weighted average grant date fair value

$ 77.90

$ 95.59

$ 72.19

Forfeited, number

(7,201)

Forfeited, weighted average grant date fair value

$ 85.63

Vested, number

(253,704)

Vested, weighted average grant date fair value

$ 75.68

Unvested, number, end of period

501,487

459,673

Unvested, weighted average grant date fair value, end of period

$ 80.49

$ 79.78

Unvested, weighted average remaining contractual term

8 years 6 months

Unvested, aggregate intrinsic value

^[1]

$ 39,918

[1]	The intrinsic value is calculated as the market value as of the end of the fiscal period.

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions					12 Months Ended
	Dec. 13, 2019	Sep. 13, 2019	Jun. 14, 2019	Mar. 15, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Mar. 13, 2020	Aug. 31, 2010
Equity [Abstract]
Dividends paid per share (in dollars per share)	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.48	$ 0.48	$ 0.48
Stock repurchase program, authorized amount									$ 50.0
Stock repurchase program, remaining authorized repurchase amount					$ 50.0
Subsequent event [Member]
Dividends Payable [Line Items]
Dividends payable per share (in dollars per share)								$ 0.12

Stockholders' Equity (Changes in Accumulated Other Comprehensive Loss by Component) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated other comprehensive (loss) income, beginning of period	$ (5,110)	$ (642)	$ (604)
Reclassification upon adoption of ASU 2018-02		0
Translation adjustments	2,641	(5,218)	(789)
Accumulated other comprehensive (loss) income, end of period	(5,290)	(5,110)	(642)
Gains and losses on cash flow hedges [Member]
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated other comprehensive (loss) income, beginning of period	1,498	748	(3)
Other comprehensive income (loss) before reclassifications	(2,399)	670	574
Amounts reclassified from accumulated other comprehensive (loss) income to interest expense	(573)	(118)	293
Tax benefit included in provision for income taxes	151	31	(116)
Total amounts reclassified from accumulated other comprehensive loss	(422)	(87)	177
Net current-period other comprehensive (loss) income	(2,821)	583	751
Reclassification upon adoption of ASU 2018-02	0	167	0
Accumulated other comprehensive (loss) income, end of period	(1,323)	1,498	748
Unrealized gains (losses), tax effects	860	(239)	(374)
Foreign currency translation adjustment [Member]
Accumulated Other Comprehensive Income [Roll Forward]
Accumulated other comprehensive (loss) income, beginning of period	(6,608)	(1,390)	(601)
Translation adjustments	2,641	(5,218)	(789)
Accumulated other comprehensive (loss) income, end of period	$ (3,967)	$ (6,608)	$ (1,390)

Defined Contribution Plan (Details) - USD ($) $ in Millions	12 Months Ended
Defined Contribution Plan (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Contribution Plan Disclosure [Line Items]
Employer matching contribution, percent of qualified employees' contribution	50.00%	50.00%	50.00%
Employer matching contributions, total	$ 8.7	$ 8.1	$ 7.1
Employer discretionary contributions, total	$ 0.0	$ 0.0	$ 0.0
Minimum [Member]
Defined Contribution Plan Disclosure [Line Items]
Employee contribution, percent of salary	1.00%	1.00%	1.00%
Maximum [Member]
Defined Contribution Plan Disclosure [Line Items]
Employee contribution, percent of salary	75.00%	75.00%	75.00%
Employer matching contribution, percent of employees' salary	6.00%	6.00%	6.00%

Segment Information (Long-Lived Assets By Geographic Region) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment	$ 35,546	$ 40,031
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment	32,606	37,015
Other countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment	$ 2,940	$ 3,016

Revenue Recognition Revenue Recognition (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation	$ 816
Revenue, remaining performance obligation, percentage to be recognized	60.00%
Revenue, remaining performance obligation, expected timing of satisfaction	12 months
Revenue recognized that was included in deferred revenue at beginning of period	$ 290

Revenue Recognition Revenue Recognition (Contract Balances) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Total deferred revenue	$ 316,137	$ 298,555

Revenue Recognition (Revenue by Geography) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 900,423	$ 848,606	$ 788,487
United States [Member]
Disaggregation of Revenue [Line Items]
Revenue	775,308	727,366	706,904
Other countries [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 125,115	$ 121,240	$ 81,583

Revenue Recognition (Revenue by Market Group) (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Disaggregation of Revenue [Line Items]

Revenue

$ 900,423

$ 848,606

$ 788,487

GMG [Member]

Disaggregation of Revenue [Line Items]

Revenue

378,384

362,585

^[1]

353,166

^[1]

EMG [Member]

Disaggregation of Revenue [Line Items]

Revenue

392,258

^[2]

360,873

^[1]

352,034

^[1]

IMG [Member]

Disaggregation of Revenue [Line Items]

Revenue

126,511

123,522

^[1]

83,217

^[1]

Other [Member]

Disaggregation of Revenue [Line Items]

Revenue

$ 3,270

$ 1,626

^[1]

$ 70

^[1]

[1]	Beginning in the first quarter of 2019, all of our Canadian operations are included in IMG. We have recast our revenue by market group for the twelve months ended December 31, 2018 and 2017, to present them on a consistent basis with the current year.
[2]	The operating results of YourCause have been included in EMG from the date of acquisition. See Note 3 to these consolidated financial statements for details regarding this acquisition.

Quarterly Results (unaudited) (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 237,839	$ 221,120	$ 225,634	$ 215,830	$ 221,218	$ 209,532	$ 213,672	$ 204,184
Gross profit	121,302	119,323	124,827	116,547	117,922	114,295	118,500	116,147	$ 481,999	$ 466,864	$ 426,583
Income from operations	3,586	7,883	13,491	2,185	14,679	15,783	11,374	17,581	27,145	59,417	68,178
Income before provision for income taxes	(1,262)	4,930	9,873	(2,956)	11,485	11,496	7,417	14,224	10,585	44,622	58,341
Net income	$ 1,324	$ 4,566	$ 7,140	$ (1,122)	$ 9,334	$ 11,164	$ 6,592	$ 17,751	$ 11,908	$ 44,841	$ 73,633
Earnings per share, basic	$ 0.03	$ 0.10	$ 0.15	$ (0.02)	$ 0.20	$ 0.24	$ 0.14	$ 0.38	$ 0.25	$ 0.95	$ 1.58
Earnings per share, diluted	$ 0.03	$ 0.09	$ 0.15	$ (0.02)	$ 0.19	$ 0.23	$ 0.14	$ 0.37	$ 0.25	$ 0.93	$ 1.54

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Restructuring (Schedule of Restructuring Costs) (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Restructuring Cost and Reserve [Line Items]

Contract termination costs

^[1]

$ 4,906

Other costs

902

Total

^[1]

5,808

Cumulative costs incurred to date

11,192

$ 5,384

Increases for incurred costs related to impairments of operating lease right-of-use assets

3,800

Contract termination costs [Member]

Restructuring Cost and Reserve [Line Items]

Cumulative costs incurred to date

9,082

4,176

Other costs [Member]

Restructuring Cost and Reserve [Line Items]

Cumulative costs incurred to date

$ 2,110

$ 1,208

[1]	Includes $3.8 million of operating lease ROU asset impairment costs.

Restructuring (Schedule of Restructuring Reserve by Type of Cost) (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2019

USD ($)

Restructuring Cost and Reserve [Line Items]

Restructuring reserve, beginning of period

$ 1,915

Increases for incurred costs

5,808

^[1]

Costs paid

(6,067)

Restructuring reserve, end of period

Increases for incurred costs related to impairments of operating lease right-of-use assets

3,800

Contract termination costs [Member]

Restructuring Cost and Reserve [Line Items]

Restructuring reserve, beginning of period

1,865

Increases for incurred costs

4,906

^[1]

Costs paid

(5,115)

Restructuring reserve, end of period

Other costs [Member]

Restructuring Cost and Reserve [Line Items]

Restructuring reserve, beginning of period

Increases for incurred costs

902

Costs paid

(952)

Restructuring reserve, end of period

ASU 2016-02 [Member]

Restructuring Cost and Reserve [Line Items]

Written off upon adoption of ASU 2016-02

(1,656)

^[2]

ASU 2016-02 [Member] | Contract termination costs [Member]

Restructuring Cost and Reserve [Line Items]

Written off upon adoption of ASU 2016-02

(1,656)

^[2]

ASU 2016-02 [Member] | Other costs [Member]

Restructuring Cost and Reserve [Line Items]

Written off upon adoption of ASU 2016-02

$ 0

[1]	Includes $3.8 million of operating lease ROU asset impairment costs.
[2]	Upon adoption of ASU 2016-02 at January 1, 2019, we reduced our operating lease ROU assets recognized at transition by the carrying amounts of the restructuring liabilities for certain leased office spaces that we ceased using prior to December 31, 2018.