0000950170-24-011411 | 10-K | XBRL Viewer

Leases - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Leases [Line Items]
Total operating lease liabilities	$ 24,122
Option to extend, lease term	10 years
Total lease cost	$ 8,100	$ 7,700	$ 7,900
Operating lease costs	7,800	7,300	7,500
Short-term lease costs	$ 300	$ 400	$ 400

Organization, Consolidation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Risks Associated with Single Business Line, Technological Advances, and Foreign Operations

We currently derive a substantial portion of our revenues from sales of cloud solutions and related services. The markets for supply chain commerce solutions are highly competitive, subject to rapid technological change, changing customer needs, frequent new product introductions, and evolving industry standards that may render existing products and services obsolete. As a result, our position in these markets could be eroded rapidly by unforeseen changes in customer requirements for application features, functions, and technologies.

Our international business is subject to risks typical of an international business, including, but not limited to, differing economic conditions, changes in political climate, differing tax structures, other regulations and restrictions, and foreign exchange rate volatility. We recognized foreign exchange losses of $1.5 million in 2023, compared to gains of $4.7 million in 2022, and losses of $0.2 million in 2021. Foreign exchange rate transaction gains and losses are classified in “Other (loss) income, net” on the Consolidated Statements of Income.

In addition, we have a large development center in Bangalore, India, that does not have a natural in-market revenue hedge to mitigate currency risk to our operating expenses in India. Fluctuations in the value of other currencies, particularly the Indian Rupee, could significantly affect our revenues, expenses, operating profit and net income.

Principles of Consolidation and Foreign Currency Translation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The financial statements of foreign subsidiaries have been translated into United States dollars in accordance with the foreign currency matters topic in the Financial Accounting Standards Board's (FASB) Accounting Standards Codification (the “Codification”). Revenues and expenses from international operations were denominated in the respective local currencies and translated using the average monthly exchange rates for the year. All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date and the effect of changes in exchange rates from year to year are disclosed as a separate component of shareholders’ equity and comprehensive income.

Cash and Cash Equivalents

We consider all highly liquid investments purchased with original maturities of three months or less to be cash or cash equivalents.

Concentrations of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. We maintain cash and cash equivalents with various financial institutions. Amounts held are above the federally insured limit.

Our sales are primarily to companies located in the United States, Europe and Asia. We perform periodic credit evaluations of our customers’ financial condition and do not require collateral. Accounts receivable are due principally from large U.S., European and Asia Pacific companies under stated contract terms. Accounts receivable, net as of December 31, 2023 for the Americas, EMEA, and APAC segments were $137.2 million, $34.6 million, and $9.4 million, respectively. Accounts receivable, net as of December 31, 2022 for the Americas, EMEA, and APAC segments were $133.6 million, $28.1 million, and $5.0 million, respectively. Our top five customers in aggregate accounted for 11%, 11%, and 12% of total revenue recognized for each of the years ended December 31, 2023 (“2023”), the year ended December 31, 2022 (“2022”), and the year ended December 31, 2021 (“2021”), respectively. No single customer accounted for more than 10% of revenue in 2023, 2022 and 2021, or more than 10% of accounts receivable as of December 31, 2023 and 2022.

Fair Value Measurement

We measure our investments based on a fair value hierarchy disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. Market price observability is affected by a number of factors, including the type of asset or liability and their characteristics. This hierarchy prioritizes the inputs into three broad levels as follows:

•

Level 1–Quoted prices in active markets for identical instruments.

•

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

•

Level 3–Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Investments with maturities of 90 days or less from the date of purchase are classified as cash equivalents; investments with maturities of greater than 90 days from the date of purchase but less than one year are generally classified as short-term investments; and investments with maturities of one year or greater from the date of purchase are generally classified as long-term investments. Unrealized holding gains and losses are reflected as a net amount in a separate component of shareholders’ equity until realized. For the purposes of computing realized gains and losses, cost is determined on a specific identification basis.

At December 31, 2023, the Company’s cash and cash equivalents were $184.5 million and $86.2 million, respectively. Cash equivalents consist of highly liquid money market funds of $79.7 million and certificates of deposit of $6.5 million. For money market funds, we use quoted prices from active markets that are classified as Level 1, the highest level of observable input in the disclosure hierarchy framework. The Company had no investments at December 31, 2023.

The carrying values of cash and cash equivalents, short-term investments, accounts receivable, and accounts payable included in the accompanying Consolidated Balance Sheets approximate their fair values principally due to the short-term maturities of these instruments.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates include the allowance for credit losses, which is based upon an evaluation of historical amounts written-off, the customers’ ability to pay, and general economic conditions; self-insurance accruals; impairment testing of goodwill; and our effective income tax rate (including the impact of unrecognized tax benefits) and deferred tax assets, which are based upon our expectations of future taxable income, allowable deductions, and projected tax credits. Actual results will differ from these estimates.

Revenue Recognition

We recognize revenue when we transfer control of the promised products or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services. We derive our revenue from cloud subscriptions, software licenses, customer support services and software enhancements (“maintenance”) for software licenses, implementation and training services, and sales of hardware. We exclude sales and usage-based taxes from revenue.

Nature of Products and Services

Cloud subscriptions includes software as a service (“SaaS”) and arrangements which provide customers with the right to use our software within a cloud environment that we provide and manage where the customer does not have the right to take possession of the software without significant penalty. SaaS and hosting revenues are recognized over the contract period. For contracts that include a perpetual license and hosting services, we generally consider the arrangement as an overall service, recognized over the initial hosting term. The software license fee typically due at the outset of the arrangement is not payable again if the customer renews the hosting services, so that the customer’s option to renew the hosting services is a material right, the revenue from which, if the option is exercised, we will recognize over the applicable renewal period.

Our perpetual software licenses provide the customer with a right to use the software as it exists at the time of purchase. We recognize revenue for distinct software licenses once the license period has begun and we have made the software available to the customer. Our perpetual software licenses are typically sold with maintenance under which we provide a comprehensive 24 hours per day, 365 days per year program that provides customers with software upgrades, when and if available, which include additional or improved functionality and technological advances incorporating emerging supply chain and industry initiatives. Revenue related to maintenance is generally paid in advance and recognized over the term of the agreement, typically twelve months.

Our services revenue consists of fees generated from implementation, training and application managed services, including reimbursements of out-pocket expenses in connection with our implementation services. Implementation services include system planning, design, configuration, testing, and other software implementation support, and are typically optional and distinct from our software. Following implementation, customers may purchase application managed services to support and maintain our software. Fees for our services are separately priced and are generally billed on an hourly basis, and revenue is recognized over time as the services are performed. In certain situations, we render professional services under agreements based upon a fixed fee for portions of or all of the engagement. Revenue related to fixed-fee-based services contracts is recognized over time based on the proportion performed.

As part of a complete solution, our customers periodically purchase hardware products developed and manufactured by third parties from us for use with the software licenses purchased from us. These products include computer hardware, radio frequency terminal networks, radio frequency identification (RFID) chip readers, bar code printers and scanners, and other peripherals. As we do not physically control the hardware that we sell, we are acting as an agent in the transaction and recognize our hardware revenue net of related cost. We recognize hardware revenue when control is transferred to the customer upon shipment.

Significant Judgments

Our contracts with customers typically contain promises to transfer multiple products and services to a customer. Judgment is required to determine whether each product and service is considered to be a distinct performance obligation that should be accounted for separately under the contract. We allocate the transaction price to the distinct performance obligations based on relative standalone selling price (“SSP”). We estimate SSP based on the prices charged to customers, or by using information such as market conditions and other observable inputs. However, the selling price of our cloud subscriptions and software licenses are highly variable. Thus, we estimate SSP for our cloud subscriptions and software licenses using the residual approach, determined based on total transaction price less the SSP of other goods and services promised in the contract.

Contract Balances

Cloud subscriptions and maintenance for perpetual software licenses are typically billed annually in advance. Timing of invoicing to customers may differ from timing of revenue recognition. Payment terms for our software licenses vary. We have an established history of collecting under the terms of our software license contracts without providing refunds or concessions to our customers. Services are typically billed monthly as performed. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with predictable ways to purchase our software and services, not to provide or receive financing. Additionally, we are applying the practical expedient to exclude from consideration any contracts with payment terms of one year or less as we rarely offer terms extending beyond one year.

Deferred revenue mainly represents amounts collected prior to having completed performance of cloud subscriptions, maintenance and professional services. $200.3 million of revenue that was included in the deferred revenue balance as of December 31, 2022 was recognized in 2023.

No revenue was recognized in 2023 from performance obligations that were satisfied in prior periods.

Remaining Performance Obligations

As of December 31, 2023, approximately $1.4 billion of revenue is expected to be recognized from remaining performance obligations. Over 98% of our reported performance obligations represent cloud native subscriptions with a non-cancelable term greater than one year (including cloud-deferred revenue as well as amounts we will invoice and recognize as revenue from our performance of cloud services in future periods). Maintenance contracts for perpetual software licenses are typically one year in duration and are not included in the remaining performance obligations. We expect to recognize revenue on approximately 40% of these remaining performance obligations over the next 24 months with the majority of the remaining balance recognized over the following 36 months. We have elected not to provide disclosures regarding remaining performance obligations for contracts with a term of 1 year or less.

Returns and Allowances

We have not experienced significant returns or warranty claims to date and, as a result, have not recorded a provision for the cost of returns and product warranty claims.

We record an allowance for credit losses utilizing a model of internal historical losses data. In estimating the allowance for credit losses, we considered our historical write-offs, the historical creditworthiness of the customer, and other factors. We also analyzed expected credit losses given future risks in projected economic conditions and future risks of customer collection. Should any of these factors change, the estimates made by us will also change accordingly, which could affect the level of our future allowances. Additions to the allowance for credit losses are recorded in general and administrative expense and were immaterial in all periods presented. Our credit loss reserve was $0.9 million and $0.6 million as of December 31, 2023 and 2022, respectively.

We also reduce accounts receivable with a corresponding reduction in services revenue for the most likely amount of potential service revenue adjustments based on a detailed assessment of accounts receivable. The total amount recorded to services revenue was $4.9 million, $5.4 million, and $2.5 million for the years ended December 31, 2023, 2022, and 2021, respectively. As of December 31, 2023 and 2022, we have reduced our accounts receivable balance by $4.4 million and $5.4 million, respectively, for these potential adjustments.

Deferred Commissions

We consider sales commissions to be incremental costs of obtaining a contract with a customer. We defer and recognize an asset for sales commissions related to performance obligations with an expected period of benefit of more than one year. We amortize these amounts over the expected benefit period which we estimate by considering several factors, including the rate of technological change and duration of our customer contracts. Sales commissions for renewal contracts are amortized over the related contractual renewal period. We apply the practical expedient to expense sales commissions when the amortization period would have been one year or less. Deferred commissions were $39.6 million as of December 31, 2023, of which $29.6 million is included in other assets and $10.0 million is included in prepaid expenses. Deferred commissions were $29.9 million as of December 31, 2022, of which $21.9 million is included in other assets and $8.0 million is included in prepaid expenses. Sales commission expense is included in Sales and Marketing expense in the accompanying consolidated statement of operations. Amortization of sales commissions in 2023, 2022 and 2021 was $9.8 million, $7.5 million, and $5.2 million respectively. No impairment losses were recognized during 2023, 2022 and 2021.

Returns and Allowances

We have not experienced significant returns or warranty claims to date and, as a result, have not recorded a provision for the cost of returns and product warranty claims.

Property and Equipment

Property and equipment is recorded at cost and consists of furniture, computers, other office equipment, and leasehold improvements. We depreciate the cost of furniture, computers, and other office equipment on a straight-line basis over their estimated useful lives (five years for office equipment, seven years for furniture and fixtures). Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Depreciation and amortization expense for 2023, 2022 and 2021 was approximately $5.8 million, $6.7 million, and $7.9 million, respectively, and was included in “Depreciation and amortization” in the Consolidated Statements of Income. Amortization expense on intangible assets in 2023, 2022 and 2021 was immaterial.

Property and equipment, at cost, consist of the following (in thousands):


	December 31,
	2023			2022
Office equipment	$	40,072		$	39,273
Furniture and fixtures		5,005			4,871
Leasehold improvement		23,849			23,518
Property and equipment, gross		68,926			67,662
Less accumulated depreciation		(57,131	)		(54,859	)
Property and equipment, net	$	11,795		$	12,803

Software Development Costs

Software may be for internal use or for resale. Costs related to certain software, which is for resale, are capitalized in accordance with Accounting Standards Codification (“ASC”) 985-20, Costs of Software to be Sold, Leased, or Marketed. Under this guidance, computer software development costs are charged to research and development (R&D) expense until technological feasibility is established, after which remaining software production costs are capitalized. We have defined technological feasibility as the point in time at which we have a detailed program design or a working model of the related product, depending on the type of development efforts, and high-risk development issues have been resolved through end-to-end system testing.

We do not typically capitalize costs related to software for resale as technological feasibility generally coincides with general availability of the software. We capitalize the costs of software developed or obtained for internal use in accordance with ASC 350-40, Internal Use Software. We expense all costs incurred during the preliminary project stage of our development and capitalizes the costs incurred during the application development stage once it is probable that development will be completed and the software will be used to perform the function intended. These costs are typically insignificant. All other costs, primarily related to maintenance and minor software fixes as well as research and development, are expensed as incurred.

Impairment of Long-Lived Assets

We review the values assigned to long-lived assets, including property and certain intangible assets, to determine whether events and circumstances have occurred which indicate that the remaining estimated useful lives may warrant revision or that the remaining balances may not be recoverable. In such reviews, undiscounted cash flows associated with these assets are compared with their carrying value to determine if a write-down to fair value is required. During 2023, 2022 and 2021, we did not recognize any impairment charges associated with our long-lived or intangible assets.

The evaluation of asset impairment requires management to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment, and actual results may differ from assumed and estimated amounts.

Goodwill and Impairment of Goodwill

Goodwill

Goodwill represents the excess of the consideration transferred over the fair value of net identified tangible and intangible assets and liabilities acquired. We evaluate goodwill for impairment on at least an annual basis. During 2023 and 2022, we did not recognize any impairment charges associated with our goodwill. We do not have any accumulated impairment loses as of 2023. Goodwill was $62.2 million at the end of both years ended December 31, 2023 and 2022.

Impairment of Goodwill

We evaluate the carrying value of goodwill annually as of December 31 and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator.

We applied the simplified goodwill impairment test for 2023, that permits companies to perform a qualitative assessment based on economic, industry and company-specific factors as the initial step in the annual goodwill impairment test for all or selected reporting units. Based on the results of the qualitative assessment, companies are only required to perform Step 1 of the annual impairment test for a reporting unit if the company concludes that it is not more likely than not that the unit’s fair value is less than its carrying amount. To the extent we conclude that it is more likely than not that a reporting unit’s estimated fair value is less than its carrying amount, the two-step approach is applied. The first step would require a comparison of each reporting unit’s fair value to the

respective carrying amount. If the carrying amount exceeds the fair value, a second step is performed to measure the amount of impairment loss, if any. We did not identify any macroeconomic or industry conditions as of December 31, 2023, that would indicate that the fair value of the reporting units were more likely than not to be less than their respective carrying values. If circumstances change or events occur to indicate that it is more likely than not that the fair value of any reporting units have fallen below their carrying amount, we would record an impairment charge based on that difference. We performed our periodic review of goodwill for impairment as of December 31, 2023 and 2022, and did not identify any impairment as a result of the review.

Guarantees and Indemnities

We account for guarantees in accordance with the guarantee accounting topic in the FASB Codification. Our customer contracts generally contain infringement indemnity provisions. Under those provisions, we generally agree, subject to certain exceptions, to indemnify, defend, and hold harmless the customer in connection with third party claims against the customer alleging that the customer’s use of our software products in compliance with their license infringe the third party’s patent, copyright, or other intellectual property rights. Conditions to our obligations generally include that we are provided the right to control the defense of the claims and, in general, to control settlement negotiations. Those provisions generally provide also that, if the customer is prevented from using our software because of a third party infringement claim, our sole obligation (in addition to the indemnification, defense, and hold harmless obligation referred to above) is to, at our expense, (i) procure for the customer the right to continue to use the software, (ii) replace or modify the product so that its use by the customer does not infringe, or, if either of the foregoing are not reasonably feasible, (iii) terminate the customer contract and provide a refund of the unamortized portion of the customer’s license fee (based on a five year amortization period). Our customer contracts sometimes also require us to indemnify, defend, and hold harmless the customer in connection with death, personal injury, or property damage claims made by third parties with respect to actions of our personnel or contractors. The indemnity obligations contained in our customer contracts generally have no specified expiration date and no specified monetary limitation on liability. We have not previously incurred costs to settle claims or pay awards under these indemnification obligations. We account for these indemnity obligations in accordance with FASB guidance on accounting for contingencies, and record a liability for these obligations when a loss is probable and reasonably estimable. We have not recorded any liabilities for these contracts as of December 31, 2023, or 2022.

In general, in our customer contracts for purchase of our cloud SaaS services or license of our on-premises software products, we warrant that our services or software will perform in accordance with our published services or product specifications. Additionally, we may include other warranties such as “no-malware” warranties and warranties that we will perform our SaaS services consistent with generally accepted industry standards or similar standards. We also warrant to our customers that services will be performed consistent with generally accepted industry standards or specific service levels through completion of the agreed upon services. If necessary, we will provide for the estimated cost of product and service warranties based on specific warranty claims history. However, we have not incurred significant recurring expenses under product or service warranties. As a result, we believe the estimated fair value of these agreements is nominal. Accordingly, we have no liabilities recorded for these agreements as of December 31, 2023 and 2022.

Segment Information

We have three reportable segments as defined by the FASB Codification topic for segment reporting: Americas, EMEA, and APAC. See Note 8 for discussion of our reportable segments.

Basic and Diluted Net Income Per Share

Basic net income per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for the period presented.

Diluted net income per share is computed using net income divided by Weighted Shares and the treasury stock method effect of common equivalent shares (CES) outstanding for each period presented. In the following table, we present a reconciliation of earnings

per share and the shares used in the computation of earnings per share for the years ended December 31, 2023, 2022 and 2021 (in thousands, except per share data):


	Year Ended December 31,
	2023			2022			2021
	(in thousands, except per share data)
Net income	$	176,568		$	128,959		$	110,472
Earnings per share:
Basic	$	2.86		$	2.05		$	1.74
Effect of CESs		(0.04	)		(0.02	)		(0.02	)
Diluted	$	2.82		$	2.03		$	1.72

Weighted average number of shares:
Basic		61,817			62,768			63,445
Effect of CESs		791			640			878
Diluted		62,608			63,408			64,323

The number of anti-dilutive CESs in 2023, 2022 and 2021 was immaterial. See Note 2 for further information on those securities.

Accumulated Other Comprehensive Income

Comprehensive income includes net income and foreign currency translation adjustments that are excluded from net income and reflected in shareholders’ equity. The entire accumulated other comprehensive income balance as of December 31, 2023 and 2022 represents foreign currency translation adjustments.

Accounting for Income Taxes

We provide for the effect of income taxes on our financial position and results of operations in accordance with the Income Taxes Topic of the Codification. Under this accounting pronouncement, income tax expense is recognized for the amount of income taxes payable or refundable for the current year and for the change in net deferred tax assets or liabilities resulting from events that are recorded for financial reporting purposes in a different reporting period than recorded in the tax return. Management must make significant assumptions, judgments, and estimates to determine our current provision for income taxes and also our deferred tax assets and liabilities and any valuation allowance to be recorded against our net deferred tax asset.

Our judgments, assumptions, and estimates relative to the current provision for income tax take into account current tax laws, our interpretation of current tax laws, allowable deductions, projected tax credits, and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. We do not recognize a tax benefit unless we conclude that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, we recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is greater than 50 percent likely to be realized. Changes in tax law or our interpretation of tax laws and the resolution of current and future tax audits could significantly impact the amounts provided for income taxes in our statement of financial position and our statements of income. Our assumptions, judgments, and estimates relative to the value of our net deferred tax asset take into account predictions of the amount and category of future taxable income. Actual operating results and the underlying amount and category of income in future years could render our current assumptions, judgments, and estimates of recoverable net deferred taxes inaccurate, thus materially impacting our financial position and results of operations.

Equity-Based Compensation

We account for equity-based compensation in accordance with ASC 718, Compensation – Stock Compensation. See Note 2 for further information.

Advertising Costs

We expense advertising costs as incurred. Advertising expense was $2.4 million in 2023, $2.3 million in 2022, and $2.3 million in 2021.

Retirement of Repurchased Shares

We immediately retire shares repurchased pursuant to any share repurchase program. We allocate the share purchase price in excess of par value between additional paid-in capital and retained earnings.

Recent Accounting Pronouncements

In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. We expect to adopt the updated accounting guidance in our Annual Report on Form 10-K for the year ended December 31, 2024. We are currently evaluating the impact the adoption of the new accounting guidance will have on our segment disclosures in Note 8.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The updated accounting guidance, among other things, requires additional disclosure primarily related to the income tax rate reconciliation and income taxes paid. We expect to adopt the updated accounting guidance in our Annual Report on Form 10-K for the year ended December 31, 2025. We are currently evaluating the impact the adoption of the new accounting guidance will have on our income tax disclosures in Note 3.

Leases - Other Information Related to Leases (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Leases [Abstract]
Weighted average remaining lease term	4 years 1 month 6 days
Weighted average discount rate	4.00%
Supplemental cash flow information - operating cash flows (in thousands):
Operating cash flows for operating leases	$ 7,016

Organization, Consolidation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Property and Equipment

Property and equipment, at cost, consist of the following (in thousands):


	December 31,
	2023			2022
Office equipment	$	40,072		$	39,273
Furniture and fixtures		5,005			4,871
Leasehold improvement		23,849			23,518
Property and equipment, gross		68,926			67,662
Less accumulated depreciation		(57,131	)		(54,859	)
Property and equipment, net	$	11,795		$	12,803

Reconciliation of Earnings per Share and Shares in Computation of Earnings Per Share

In the following table, we present a reconciliation of earnings

per share and the shares used in the computation of earnings per share for the years ended December 31, 2023, 2022 and 2021 (in thousands, except per share data):


	Year Ended December 31,
	2023			2022			2021
	(in thousands, except per share data)
Net income	$	176,568		$	128,959		$	110,472
Earnings per share:
Basic	$	2.86		$	2.05		$	1.74
Effect of CESs		(0.04	)		(0.02	)		(0.02	)
Diluted	$	2.82		$	2.03		$	1.72

Weighted average number of shares:
Basic		61,817			62,768			63,445
Effect of CESs		791			640			878
Diluted		62,608			63,408			64,323

Reconciliation of Earnings per Share and Shares in Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Net income	$ 176,568	$ 128,959	$ 110,472
Earnings per share:
Basic	$ 2.86	$ 2.05	$ 1.74
Effect of CESs	(0.04)	(0.02)	(0.02)
Diluted	$ 2.82	$ 2.03	$ 1.72
Weighted average number of shares:
Basic	61,817	62,768	63,445
Effect of CESs	791	640	878
Diluted	62,608	63,408	64,323

Segment Reporting - Goodwill, Long-Lived Assets and Total Assets by Reportable Segment (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Goodwill, net	$ 62,235	$ 62,230
Long lived assets	65,886	55,367
Total assets	673,353	570,178
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Goodwill, net	54,766	54,766
Long lived assets	53,061	47,591
Total assets	566,826	488,064
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Goodwill, net	5,506	5,501
Long lived assets	10,129	6,640
Total assets	85,709	65,491
APAC
Revenues from External Customers and Long-Lived Assets [Line Items]
Goodwill, net	1,963	1,963
Long lived assets	2,696	1,136
Total assets	$ 20,819	$ 16,623

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (bb)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481203/810-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 25
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481231/810-10-45-25

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
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+ Details

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2020	$ 218,897	$ 635		$ 236,524	$ (18,262)
Balance (in shares) at Dec. 31, 2020		63,527,186
Repurchase of common stock	(120,418)	$ (9)	$ (43,254)	(77,155)
Repurchase of common stock (in shares)		(887,782)
Restricted stock units issuance		$ 5	(5)
Restricted stock units issuance (in shares)		515,090
Equity-based compensation	43,259		43,259
Foreign currency translation adjustment, net of tax	(1,566)				(1,566)
Net income	110,472			110,472
Balance at Dec. 31, 2021	250,644	$ 631		269,841	(19,828)
Balance (in shares) at Dec. 31, 2021		63,154,494
Repurchase of common stock	(204,460)	$ (16)	(59,355)	(145,089)
Repurchase of common stock (in shares)		(1,569,531)
Restricted stock units issuance		$ 6	(6)
Restricted stock units issuance (in shares)		606,607
Equity-based compensation	59,361		59,361
Foreign currency translation adjustment, net of tax	(7,704)				(7,704)
Net income	128,959			128,959
Balance at Dec. 31, 2022	226,800	$ 621		253,711	(27,532)
Balance (in shares) at Dec. 31, 2022		62,191,570
Repurchase of common stock	(196,047)	$ (12)	(70,457)	(125,578)
Repurchase of common stock (in shares)		(1,246,231)
Restricted stock units issuance		$ 6	(6)
Restricted stock units issuance (in shares)		620,698
Excise tax accrued	(1,108)		(1,108)
Equity-based compensation	71,571		$ 71,571
Foreign currency translation adjustment, net of tax	494				494
Net income	176,568			176,568
Balance at Dec. 31, 2023	$ 278,278	$ 615		$ 304,701	$ (27,038)
Balance (in shares) at Dec. 31, 2023		61,566,037

Segment Reporting

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

8. Segment Reporting

We manage our business by geographic segment and have three geographic reportable segments: the Americas, EMEA, and APAC. All segments derive revenue from the sale and implementation of our supply chain commerce solutions. The individual products sold by the segments are similar in nature and are all designed to help companies manage the effectiveness and efficiency of their supply chain commerce. We use the same accounting policies for each reportable segment. The chief operating decision maker (chief executive officer and chief financial officer) evaluate performance based on revenue and operating results for each reportable segment.

The Americas segment charges royalty fees to the other segments based on cloud subscriptions and software licenses sold by those reportable segments. The royalties, which totaled $13.7 million, $8.9 million, and $6.1 million in 2023, 2022 and 2021, respectively, are included in costs of revenue for each segment with a corresponding reduction in the America’s cost of revenue. The revenues represented below are from external customers only. The geography-based costs consist of costs for professional services personnel, direct sales and marketing expenses, infrastructure costs to support the employee and customer base, billing and financial systems, management and general and administrative support. There are certain corporate expenses included in the Americas segment that we do not charge to the other segments. Such expenses include research and development, certain marketing and general and administrative costs that support the global organization, and the amortization of acquired developed technology. Costs in the Americas’ segment include all research and development costs including the costs associated with our operations in India.

In accordance with the segment reporting topic of the FASB Codification, we present below financial information by reportable segment for 2023, 2022 and 2021 (in thousands):


	Year Ended December 31,
	2023								2022
	Americas		EMEA		APAC		Consolidated		Americas		EMEA		APAC		Consolidated
Revenue:
Cloud subscriptions	$	205,611	$	42,243	$	6,758	$	254,612	$	148,943	$	22,988	$	4,527	$	176,458
Software license		12,040		2,925		3,241		18,206		16,364		6,380		2,104		24,848
Maintenance		114,963		19,721		9,252		143,936		113,258		19,784		9,156		142,198
Services		362,979		101,254		23,636		487,869		295,998		79,628		18,470		394,096
Hardware		23,602		495		5		24,102		29,321		158		5		29,484
Total revenue		719,195		166,638		42,892		928,725		603,884		128,938		34,262		767,084

Costs and Expenses:
Cost of revenue		321,701		89,523		19,390		430,614		271,222		71,108		15,907		358,237
Operating expenses		257,172		19,889		5,417		282,478		227,409		17,187		4,888		249,484
Depreciation and amortization		5,164		503		85		5,752		5,964		613		86		6,663
Total costs and expenses		584,037		109,915		24,892		718,844		504,595		88,908		20,881		614,384
Operating income	$	135,158	$	56,723	$	18,000	$	209,881	$	99,289	$	40,030	$	13,381	$	152,700


	Year Ended December 31, 2021
	Americas		EMEA		APAC		Consolidated
Revenue:
Cloud subscriptions	$	103,863	$	15,380	$	2,952	$	122,195
Software license		29,300		5,729		2,041		37,070
Maintenance		113,169		23,091		9,581		145,841
Services		256,392		66,131		12,276		334,799
Hardware		23,491		243		4		23,738
Total revenue		526,215		110,574		26,854		663,643

Costs and Expenses:
Cost of revenue		225,799		58,593		13,435		297,827
Operating expenses		202,217		16,496		4,856		223,569
Depreciation and amortization		7,020		738		156		7,914
Total costs and expenses		435,036		75,827		18,447		529,310
Operating income	$	91,179	$	34,747	$	8,407	$	134,333

In the following table, we present goodwill, long-lived assets, and total assets by reportable segment as of December 31, 2023 and 2022 (in thousands):


	As of December 31, 2023								As of December 31, 2022
	Americas		EMEA		APAC		Consolidated		Americas		EMEA		APAC		Consolidated
Goodwill, net	$	54,766	$	5,506	$	1,963	$	62,235	$	54,766	$	5,501	$	1,963	$	62,230
Long lived assets		53,061		10,129		2,696		65,886		47,591		6,640		1,136		55,367
Total assets		566,826		85,709		20,819		673,353		488,064		65,491		16,623		570,178

For the years ended December 31, 2023, 2022 and 2021, we derived revenue from sales to customers outside the United States of approximately $301.4 million, $238.4 million, and $196.4 million, respectively. Our remaining revenue was derived from domestic sales.

Cloud subscriptions revenue primarily relates to our Manhattan Active omnichannel, warehouse management solutions, and transportation management solutions for the year ended December 31, 2023. The majority of our software license revenue (approximately 85%) relates to our warehouse management product group for the same period.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Subsequent Events - Additional Information (Detail) - 2300 Windy Ridge LLC $ in Millions		12 Months Ended
	Jan. 31, 2024 USD ($) ft²	Dec. 31, 2023	Jan. 30, 2024 ft²
Subsequent Event [Line Items]
Lease expiration date prior to amendment		Sep. 30, 2025
Subsequent Event
Subsequent Event [Line Items]
Operating lease description	On January 31, 2024, Manhattan executed the eighth amendment to its corporate headquarters lease agreement with 2300 Windy Ridge LLC ("Lessor”). Under the amendment, Manhattan extended its lease termination date from September 30, 2025, to September 30, 2036 for substantially all of its leased premises, for additional minimum rental payments of $67.2 million over the extended lease term and changed its base square footage from approximately 221,000 to 209,000 square feet. Manhattan also received $12.6 million in tenant allowances. While the parties delivered executed copies of the amendment into escrow, effectiveness of the amendment is subject to the satisfaction or waiver of several conditions, including the Lessor obtaining new financing for the property and delivery of a letter of credit in favor of Manhattan for the tenant allowance.
Lease termination date	Sep. 30, 2036
Additional minimum rental payments	$ 67.2
Operating lease, space leased \| ft²	209,000		221,000
Lessee tenant allowance acquired	$ 12.6

Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 68,926	$ 67,662
Less accumulated depreciation	(57,131)	(54,859)
Property and equipment, net	11,795	12,803
Office Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	40,072	39,273
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross	5,005	4,871
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 23,849	$ 23,518

Employee Benefit Plan

12 Months Ended

Dec. 31, 2023

Postemployment Benefits [Abstract]

Employee Benefit Plan

6. Employee Benefit Plan

We sponsor the Manhattan Associates 401(k) Plan and Trust (the “401(k) Plan”), a qualified profit sharing plan with a 401(k) feature covering substantially all our employees. Under the 401(k) Plan’s deferred compensation arrangement, eligible employees who elect to participate in the 401(k) Plan may contribute up to 60% of eligible compensation up to $22,500, as defined, to the 401(k) Plan. The Internal Revenue Service sets the eligible compensation limit at $330,000 for 2023. Since 2012, we have provided a 50% matching contribution up to 6% of eligible compensation being contributed after the participant’s first year of employment. During the years ended December 31, 2023, 2022 and 2021, the Company expensed matching contributions to the 401(k) Plan of $7.8 million, $6.7 million, and $5.2 million, respectively.

Subsequent Events

12 Months Ended

Dec. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

9. Subsequent Events

On January 31, 2024, Manhattan executed the eighth amendment to its corporate headquarters lease agreement with 2300 Windy Ridge LLC ("Lessor”). Under the amendment, Manhattan extended its lease termination date from September 30, 2025, to September 30, 2036 for substantially all of its leased premises, for additional minimum rental payments of $67.2 million over the extended lease term and changed its base square footage from approximately 221,000 to 209,000 square feet. Manhattan also received $12.6 million in tenant allowances. While the parties delivered executed copies of the amendment into escrow, effectiveness of the amendment is subject to the satisfaction or waiver of several conditions, including the Lessor obtaining new financing for the property and delivery of a letter of credit in favor of Manhattan for the tenant allowance.

We evaluated all other subsequent events that occurred after the date of the accompanying financial statements and determined that there were no other events or transactions during this subsequent event reporting period which require recognition or disclosure in our financial statements.

Segment Reporting - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) Segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| Segment	3
Revenue from sales to customers	$ 928,725	$ 767,084	$ 663,643
Warehouse Management Product Group \| Product Concentration Risk \| Sales Revenue, Net
Segment Reporting Information [Line Items]
Percentage of software license revenue	85.00%
Americas
Segment Reporting Information [Line Items]
Americas royalty fees	$ 13,700	8,900	6,100
Revenue from sales to customers	719,195	603,884	526,215
Outside United States
Segment Reporting Information [Line Items]
Revenue from sales to customers	$ 301,400	$ 238,400	$ 196,400

Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Oct. 31, 2023
Stockholders Equity Note [Line Items]
Common stock shares purchased under publicly-announced share repurchase program	1,024,328	1,352,954	709,200
Common stock purchased under publicly-announced share repurchase program, value	$ 166.0	$ 175.4	$ 100.0
Stock repurchase program, authorized amount				$ 75.0
Excise tax on stock repurchases	1.00%

Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Changes in Unvested Units of Restricted Stock

We present below a summary of changes in unvested units of restricted stock during 2023:


	Number of Units	Grant Date Fair Value
Outstanding at January 1, 2023	1,427,831	$106.50
Granted	582,710	127.51
Vested	(620,698)	86.72
Forfeited	(13,780)	125.61
Outstanding at December 31, 2023	1,376,063

Equity-Based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Equity-Based Compensation

2. Equity-Based Compensation

Equity Based Compensation Plans

In May 2020, the Manhattan Associates, Inc. 2020 Equity Incentive Plan (the “2020 Plan”) was approved by our shareholders. The 2020 Plan provides for the grant of stock options, restricted stock, restricted stock units, and stock appreciation rights. Vesting conditions can be service-based or performance-based, or a combination of both. The number of shares subject to outstanding awards under the 2007 Stock Incentive Plan (the “2007 Plan”) that are forfeited or canceled or expire after the Effective Date, in accordance with the terms of the 2007 Plan, are counted as one share toward the 2020 Plan.

A maximum of 4,500,000 shares are available for grant under the amended 2020 Plan. Each stock option, stock appreciation right, restricted stock, or restricted stock unit granted is counted against the maximum share limitation as one share. Options and stock appreciation rights cannot have a term exceeding seven years. As of December 31, 2023, there were 2,870,924 shares available for issuance under the 2020 Plan. The 2020 Plan is administered by the Compensation Committee of the Board of Directors. The committee has the authority to interpret the provisions thereof.

The restricted stock unit awards contain vesting provisions that are 50% service based and 50% performance based for employee awards and 100% service based for non-employee members of the Board of Directors (“Outside Directors”). The employee awards have a four year vesting period, with the performance portion tied to annual revenue and operating income targets. The awards to Outside Directors have a one year vesting period. We recognize compensation cost for service-based restricted awards with graded vesting on a straight-line basis over the entire vesting period, with the amount of compensation cost recognized at any date at least equal to the portion of the grant-date value of the award that is vested at that date. For our performance-based restricted stock awards with graded vesting, we recognize compensation cost on an accelerated basis applying straight-line expensing for each separately vesting portion of each award. We utilize the price of our publicly traded shares to determine the fair value of restricted stock units on the grant date.

Restricted Stock Unit Awards

We present below a summary of changes in unvested units of restricted stock during 2023:


	Number of Units	Grant Date Fair Value
Outstanding at January 1, 2023	1,427,831	$106.50
Granted	582,710	127.51
Vested	(620,698)	86.72
Forfeited	(13,780)	125.61
Outstanding at December 31, 2023	1,376,063

The Company recorded equity-based compensation expense related to restricted stock and RSUs (collectively “restricted stock awards”) of $71.6 million, $59.4 million, and $43.3 million in 2023, 2022 and 2021, respectively. The total fair value of restricted stock awards vested in 2023, 2022 and 2021, based on market value at the vesting dates was $85.2 million, $81.4 million, $59.8 million, respectively. The weighted average grant-date fair value of RSUs granted during fiscal year 2023, 2022 and 2021 was

$127.51, $123.75, and $128.62, respectively. As of December 31, 2023, unrecognized compensation cost related to unvested RSU totaled $102.3 million and is expected to be recognized over a weighted average period of approximately 2.3 years. We recognize forfeitures of equity-based payments as they occur.

Included in RSU grants for the year ended December 31, 2023 are 319,109 units that have performance-based vesting criteria granted at target level for 2023 and performance adjustments above target level for 2022. The performance criteria are tied to our financial performance. As of December 31, 2023, the associated equity-based compensation expense has been recognized for the portion of the award attributable to the 2023 performance criteria.

Organization, Consolidation and Summary of Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2023 USD ($) Customer Segment	Dec. 31, 2022 USD ($) Customer	Dec. 31, 2021 USD ($) Customer
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Credit loss reserve	$ 900,000	$ 600,000
Other provisions for doubtful accounts valuation allowance	$ 4,400,000	$ 5,400,000
Percentage of revenue accounted for by top 5 customers	11.00%	11.00%	12.00%
Number of customers accounting for more than 10% of revenue \| Customer	0	0	0
Number of customers accounting for more than 10% of accounts receivable \| Customer	0	0
Cash	$ 184,500,000
Cash equivalents	86,200,000
Money market funds	79,700,000
Investments	0
Revenue recognized in the reporting period from performance obligations satisfied in prior periods	0
Revenue expected to be recognized from remaining performance obligations	$ 1,400,000,000
Percentage of remaining performance obligation to be recognized as cloud revenue	98.00%
Remaining performance obligation, explanation	We expect to recognize revenue on approximately 40% of these remaining performance obligations over the next 24 months with the majority of the remaining balance recognized over the following 36 months.
Percentage of expected revenue recognition	40.00%
Revenue, practical expedient, remaining performance obligation, description	We apply the practical expedient to expense sales commissions when the amortization period would have been one year or less.
Amortization of sales commissions	$ 9,800,000	$ 7,500,000	$ 5,200,000
Impairment losses	0	0	0
Depreciation and amortization expense	5,752,000	6,663,000	7,914,000
Impairment charges of long-lived assets	0	0	0
Impairment charges of intangible assets	0	0	0
Impairment charges of goodwill	0	0
Accumulated impairment losses	0
Goodwill, net	$ 62,235,000	62,230,000
Customer's license amortization period	5 years
Number of reportable segments \| Segment	3
Advertising expense	$ 2,400,000	2,300,000	2,300,000
Services
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Amount recorded for potential service revenue adjustments	$ 4,900,000	5,400,000	2,500,000
Office Equipment
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Property and equipment estimated useful life	5 years
Furniture and Fixtures
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Property and equipment estimated useful life	7 years
Leasehold Improvements
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Leasehold improvements useful life	lesser of their useful lives or the term of the lease.
Balance as of December 31, 2020
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Deferred revenue recognized	$ 200,300,000
Sales Commission
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Deferred commissions	39,600,000	29,900,000
Sales Commission \| Other Assets
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Deferred commissions	29,600,000	21,900,000
Sales Commission \| Prepaid Expenses
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Deferred commissions	10,000,000	8,000,000
Americas
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Accounts receivable, net	137,200,000	133,600,000
Depreciation and amortization expense	5,164,000	5,964,000	7,020,000
Goodwill, net	54,766,000	54,766,000
EMEA
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Accounts receivable, net	34,600,000	28,100,000
Depreciation and amortization expense	503,000	613,000	738,000
Goodwill, net	5,506,000	5,501,000
APAC
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Accounts receivable, net	9,400,000	5,000,000
Depreciation and amortization expense	85,000	86,000	156,000
Goodwill, net	1,963,000	1,963,000
India
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Certificates of deposit	6,500,000
Other (Loss) Income, Net
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items]
Foreign exchange gains (losses)	$ (1,500,000)	$ 4,700,000	$ (200,000)

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

3. Income Taxes

We are subject to future federal, state, and foreign income taxes and have recorded net deferred tax assets on the Consolidated Balance Sheets at December 31, 2023 and 2022. Deferred tax assets and liabilities are determined based on the difference between the financial accounting and tax bases of assets and liabilities. We present below significant components of our deferred tax assets and liabilities as of December 31, 2023 and 2022 are as follows (in thousands):


	December 31,
	2023			2022
Deferred tax assets:
Accounts receivable	$	1,179		$	1,321
Accrued liabilities		12,255			9,208
Equity-based compensation		12,148			9,832
Capitalized R&D costs		50,654			27,516
Accrued sales taxes		189			190
Operating lease liabilities		3,219			2,974
State tax credits		3,102			2,700
Tax credit - foreign		5,397			3,108
Valuation allowance		(2,881	)		(2,735	)
Other		295			279
		85,557			54,393
Deferred tax liabilities:
Intangible Assets		7,417			7,428
Depreciation		429			580
Deferred commissions		8,638			6,408
Operating lease right-of-use assets		3,030			2,771
		19,514			17,187
Net deferred tax assets	$	66,043		$	37,206

We present below income from domestic and foreign operations before income tax expense for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Domestic	$	193,727	$	139,217	$	120,565
Foreign		19,944		18,904		13,507
Total	$	213,671	$	158,121	$	134,072

The components of our income tax provision for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands):


	Year Ended December 31,
	2023			2022			2021
Current:
Federal	$	46,497		$	42,198		$	14,042
State		10,911			11,183			5,188
Foreign		8,539			5,492			6,309
	$	65,947		$	58,873		$	25,539
Deferred:
Federal		(23,116	)		(22,383	)		(427	)
State		(3,132	)		(5,200	)		(531	)
Foreign		(2,596	)		(2,128	)		(981	)
		(28,844	)		(29,711	)		(1,939	)
Total	$	37,103		$	29,162		$	23,600

We currently have a tax holiday in India under the Special Economic Zone Act through March 2029. As a result of this holiday, we had pre-tax income of approximately $14.3 million, for the year ended December 31, 2023, that was not subject to tax. Separately, we are subject to India’s Minimum Alternate Tax (MAT) and accordingly incurred income tax expense of approximately $2.3 million in 2023. The impact on diluted earnings per share if the income had been fully taxable would have been a decrease of $0.04 per share in 2023.

We have tax credit carry-forwards of approximately $3.9 million available to offset future state tax. These tax credit carry-forwards expire in 2026 to 2034. These credits represent a deferred tax asset of $3.1 million after consideration of the federal benefit of state tax deductions. A valuation allowance of $1.5 million has been established for these credits because the ability to use them is not more likely than not. We also have a tax credit carry-forward of approximately $5.4 million available to offset future foreign tax. This tax credit carryforward begins expiring in 2036.

At December 31, 2023 we had approximately $90.4 million of undistributed earnings and profits. The undistributed earnings and profits are considered previously taxed income and would not be subject to U.S. income taxes upon repatriation of those earnings, in the form of dividends. The undistributed earnings and profits are considered to be permanently reinvested, accordingly no provision for local withholdings taxes have been provided, however, upon repatriation of those earnings, in the form of dividends, we could be subject to additional local withholding taxes.

We present below a summary of the items that cause recorded income taxes to differ from taxes computed using the statutory federal income tax rate for the years ended December 31, 2023, 2022 and 2021:


	Year Ended December 31,
	2023			2022			2021

Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
Effect of:
State income tax, net of federal benefit		3.0			3.6			3.6
State credit carryforwards		(0.2	)		1.2			(0.8	)
U.S. federal R&D tax credit		(1.8	)		(1.8	)		(1.8	)
Non-deductible equity compensation		1.1			1.1			0.9
Excess benefit of equity compensation		(3.2	)		(4.8	)		(4.9	)
Employee compensation limitation		3.4			3.7			3.4
Global Intangible Low Taxed Income (GILTI)		0.1			0.1			0.2
Foreign-derived intangible income (FDII) deduction		(3.6	)		(3.3	)		(3.1	)
Foreign operations		(2.9	)		0.5			(0.7	)
Tax contingencies		(0.3	)		(1.3	)		(0.3	)
Other permanent differences		0.7			(0.3	)		(0.6	)
Change in valuation allowance		0.1			(1.3	)		0.7
Income taxes		17.4	%		18.4	%		17.6	%

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31, 2023, 2022 and 2021 (in thousands):


	December 31,
	2023			2022			2021

Unrecognized tax benefits at January 1,	$	(10,532	)	$	(13,186	)	$	(12,804	)
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during a prior period		(425	)		(199	)		(408	)
Gross amount of decreases in unrecognized tax benefits as a result of tax positions taken during a prior period		908			2,583			147
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during the current period		(2,182	)		(1,787	)		(3,117	)
Reductions to unrecognized tax benefits relating to settlements with taxing authorities		-			-			148
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations		2,543			2,057			2,848
Unrecognized tax benefits at December 31,	$	(9,688	)	$	(10,532	)	$	(13,186	)

Our unrecognized tax benefits totaled $9.7 million and $10.5 million as of December 31, 2023 and 2022, respectively. Included in these amounts are unrecognized tax benefits totaling $9.1 million and $9.9 million as of December 31, 2023 and 2022, respectively, which, if recognized, would affect the effective tax rate.

We recognize potential accrued interest and penalties related to unrecognized tax benefits within our global operations in income tax expense. For the years ended December 31, 2023, 2022 and 2021, the Company recognized the following income tax expense: $0.1 million, $0.7 million, and $0.4 million, respectively, for the potential payment of interest and penalties. Accrued interest and penalties were $1.3 million and $1.2 million for the years ended December 31, 2023 and 2022. We conduct business globally and, as a result, file income tax returns in the United State federal jurisdiction and in many state and foreign jurisdictions. We are generally no longer subject to U.S. federal, state, and local, or non-US income tax examinations for the years before 2010. Due to the expiration of statutes of limitations in multiple jurisdictions globally during 2023, the Company anticipates it is reasonably possible that unrecognized tax benefits may decrease by $3.2 million.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Schedule of Financial Information by Reportable Segment

In accordance with the segment reporting topic of the FASB Codification, we present below financial information by reportable segment for 2023, 2022 and 2021 (in thousands):


	Year Ended December 31,
	2023								2022
	Americas		EMEA		APAC		Consolidated		Americas		EMEA		APAC		Consolidated
Revenue:
Cloud subscriptions	$	205,611	$	42,243	$	6,758	$	254,612	$	148,943	$	22,988	$	4,527	$	176,458
Software license		12,040		2,925		3,241		18,206		16,364		6,380		2,104		24,848
Maintenance		114,963		19,721		9,252		143,936		113,258		19,784		9,156		142,198
Services		362,979		101,254		23,636		487,869		295,998		79,628		18,470		394,096
Hardware		23,602		495		5		24,102		29,321		158		5		29,484
Total revenue		719,195		166,638		42,892		928,725		603,884		128,938		34,262		767,084

Costs and Expenses:
Cost of revenue		321,701		89,523		19,390		430,614		271,222		71,108		15,907		358,237
Operating expenses		257,172		19,889		5,417		282,478		227,409		17,187		4,888		249,484
Depreciation and amortization		5,164		503		85		5,752		5,964		613		86		6,663
Total costs and expenses		584,037		109,915		24,892		718,844		504,595		88,908		20,881		614,384
Operating income	$	135,158	$	56,723	$	18,000	$	209,881	$	99,289	$	40,030	$	13,381	$	152,700


	Year Ended December 31, 2021
	Americas		EMEA		APAC		Consolidated
Revenue:
Cloud subscriptions	$	103,863	$	15,380	$	2,952	$	122,195
Software license		29,300		5,729		2,041		37,070
Maintenance		113,169		23,091		9,581		145,841
Services		256,392		66,131		12,276		334,799
Hardware		23,491		243		4		23,738
Total revenue		526,215		110,574		26,854		663,643

Costs and Expenses:
Cost of revenue		225,799		58,593		13,435		297,827
Operating expenses		202,217		16,496		4,856		223,569
Depreciation and amortization		7,020		738		156		7,914
Total costs and expenses		435,036		75,827		18,447		529,310
Operating income	$	91,179	$	34,747	$	8,407	$	134,333

Goodwill, Long-Lived Assets and Total Assets by Reportable Segment

In the following table, we present goodwill, long-lived assets, and total assets by reportable segment as of December 31, 2023 and 2022 (in thousands):


	As of December 31, 2023								As of December 31, 2022
	Americas		EMEA		APAC		Consolidated		Americas		EMEA		APAC		Consolidated
Goodwill, net	$	54,766	$	5,506	$	1,963	$	62,235	$	54,766	$	5,501	$	1,963	$	62,230
Long lived assets		53,061		10,129		2,696		65,886		47,591		6,640		1,136		55,367
Total assets		566,826		85,709		20,819		673,353		488,064		65,491		16,623		570,178

Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Taxes [Line Items]
Tax credit carry-forwards	$ 3,900
Tax credit carry-forwards deferred tax asset	3,102	$ 2,700
Tax credit carry-forwards, valuation allowance	1,500
Pre-tax income due to tax holiday	213,671	158,121	$ 134,072
Income tax provision	$ 37,103	29,162	23,600
Decrease in diluted earnings per share	$ (0.04)
Undistributed earnings and profits	$ 90,400
Unrecognized tax benefits	9,688	10,532	13,186	$ 12,804
Unrecognized tax benefits which, if recognized, would affect the effective tax rate	9,100	9,900
Accrued interest and penalties recognized related to unrecognized tax benefits	100	700	$ 400
Accrued interest and penalties	1,300	$ 1,200
Reasonably possible amount of decrease in unrecognized tax benefit over the next twelve months	$ 3,200
Earliest Tax Year
Income Taxes [Line Items]
Tax credit carry-forwards, expiration dates	2026
Latest Tax Year
Income Taxes [Line Items]
Tax credit carry-forwards, expiration dates	2034
Foreign
Income Taxes [Line Items]
Tax credit carry-forwards	$ 5,400
Tax credit carry-forwards, expiration dates	2036
Special Economic Zone Act
Income Taxes [Line Items]
Pre-tax income due to tax holiday	$ 14,300
Minimum Alternate Tax
Income Taxes [Line Items]
Income tax provision	$ 2,300

Equity-Based Compensation - Summary of Changes in Unvested Units of Restricted Stock (Detail) - Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of units, Outstanding at January 1, 2023	1,427,831
Number of units, Granted	582,710
Number of units, Vested	(620,698)
Number of units, Forfeited	(13,780)
Number of units, Outstanding at December 31, 2023	1,376,063	1,427,831
Grant date fair value, Outstanding at January 1, 2023	$ 106.5
Grant date fair value, Granted	127.51	$ 123.75	$ 128.62
Grant date fair value, Vested	86.72
Grant date fair value, Forfeited	$ 125.61

Equity-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock expense	$ 71.6	$ 59.4	$ 43.3
Stock Compensation Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of restricted stock and restricted stock units awarded for service based vesting	50.00%
Percentage of restricted stock and restricted stock units awarded for performance based vesting	50.00%
Award vesting period (years)	4 years
Non Employee Director Restricted Equity Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of restricted stock and restricted stock units awarded for service based vesting	100.00%
Award vesting period (years)	1 year
Restricted Stock and Restricted Stock Unit
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total fair value of restricted stock awards vested	$ 85.2	$ 81.4	$ 59.8
RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant-date fair value of granted	$ 127.51	$ 123.75	$ 128.62
Unrecognized compensation cost related to unvested restricted stock	$ 102.3
Unrecognized compensation cost related to unvested award, period of recognition	2 years 3 months 18 days
Number of restricted units granted in the period	582,710
Performance Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of restricted units granted in the period	319,109
2020 Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum shares available for grant	4,500,000
Shares available for issuance	2,870,924
2020 Stock Incentive Plan \| Stock Option, Stock Appreciation Right, Restricted Stock, or Restricted Stock Unit
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted share count against share available	1
2020 Stock Incentive Plan \| Stock Options and Stock Appreciation Rights \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award term (years)	7 years

Shareholders' Equity

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Shareholders' Equity

4. Shareholders’ Equity

During 2023, 2022 and 2021, we purchased 1,024,328, 1,352,954, and 709,200 shares of the Company’s common stock for $166.0 million, $175.4 million, and $100.0 million, respectively, through open market transactions as part of a publicly-announced share repurchase program. Our $75.0 million repurchase authority replenished by our Board of Directors in October 2023 remains in effect.

As of 2023, we are subject to a 1% excise tax on stock repurchases as enacted by the United States Inflation Reduction Act which we include in the cost of stock repurchases as a reduction of shareholders’ equity.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

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+ Details

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2023	Jan. 30, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Trading Symbol	MANH
Entity Registrant Name	Manhattan Associates, Inc.
Entity Central Index Key	0001056696
Current Fiscal Year End Date	--12-31
Entity Incorporation, State or Country Code	GA
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		61,566,215
Entity Public Float			$ 12,326,302,179
Entity Interactive Data Current	Yes
Document Annual Report	true
Document Transition Report	false
Entity File Number	000-23999
Entity Tax Identification Number	58-2373424
Entity Address, Address Line One	2300 Windy Ridge Parkway
Entity Address, Address Line Two	Tenth Floor
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30339
City Area Code	770
Local Phone Number	955-7070
Auditor Name	Ernst & Young LLP
Auditor Firm ID	42
Auditor Location	Atlanta, Georgia
Title of each class	Common Stock, $.01 par value per share
Name of each exchange on which registered	NASDAQ
Documents Incorporated by Reference	The Registrant’s definitive Proxy Statement for the Annual Meeting of Shareholders to be held May 9, 2024 is incorporated by reference in Part III of this Form 10-K to the extent stated herein.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating activities:
Net income	$ 176,568	$ 128,959	$ 110,472
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,752	6,663	7,914
Equity-based compensation	71,571	59,361	43,259
Loss (gain) on disposal of equipment	57	(89)	7
Deferred income taxes	(28,844)	(29,711)	(1,912)
Unrealized foreign currency loss (gain)	1,280	(1,515)	(493)
Changes in operating assets and liabilities:
Accounts receivable, net	(13,084)	(44,056)	(16,650)
Other assets	(10,925)	(10,247)	(6,533)
Accounts payable, accrued and other liabilities	18,123	11,794	12,256
Income taxes	(1,416)	765	(3,667)
Deferred revenue	27,136	57,706	40,530
Net cash provided by operating activities	246,218	179,630	185,183
Investing activities:
Purchases of property and equipment	(4,730)	(6,587)	(4,016)
Net cash used in investing activities	(4,730)	(6,587)	(4,016)
Financing activities:
Purchase of common stock	(196,047)	(204,460)	(120,418)
Net cash used in financing activities	(196,047)	(204,460)	(120,418)
Foreign currency impact on cash	(163)	(6,826)	(1,748)
Net change in cash and cash equivalents	45,278	(38,243)	59,001
Cash and cash equivalents at beginning of period	225,463	263,706	204,705
Cash and cash equivalents at end of period	270,741	225,463	263,706
Supplemental disclosures of cash flow information:
Cash paid for taxes	$ 67,376	$ 58,022	$ 29,162

Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Contingencies

5. Contingencies

From time to time, we may be involved in litigation relating to claims arising in the ordinary course of business, and occasionally legal proceeding not in the ordinary course. Many of our installations involve products that are critical to the operations of our clients’ businesses. Any failure in our company’s products could result in a claim for substantial damages against us, regardless of our responsibility for such failure. Although we attempt to contractually limit our liability for damages arising from product failures or negligent acts or omissions, there can be no assurance that the limitations of liability set forth in its contracts will be enforceable in all instances. We are not currently a party to any legal proceeding in the ordinary course of business or other legal proceedings the result of which we believe is likely to have a material adverse impact upon our business, financial position, results of operations, or cash flows. We expense legal costs associated with loss contingencies as such legal costs are incurred.

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 270,741	$ 225,463
Accounts receivable, net	181,173	166,767
Income taxes receivable	1,371	647
Prepaid expenses	20,710	18,884
Other current assets	5,195	3,614
Total current assets	479,190	415,375
Property and equipment, net	11,795	12,803
Operating lease right-of-use assets	21,645	17,794
Goodwill, net	62,235	62,230
Deferred income taxes	66,043	37,206
Other assets	32,445	24,770
Total assets	673,353	570,178
Current liabilities:
Accounts payable	24,508	25,701
Accrued compensation and benefits	73,210	54,469
Accrued and other liabilities	27,374	24,569
Deferred revenue	237,793	208,807
Income taxes payable	3,030	2,049
Total current liabilities	365,915	315,595
Operating lease liabilities, long-term	17,694	14,065
Other non-current liabilities	11,466	13,718
Commitments and contingencies (Note 5)
Shareholders' equity:
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding at December 31, 2023 and December 31, 2022
Common stock, $.01 par value; 200,000,000 shares authorized; 61,566,037 and 62,191,570 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively	615	621
Retained earnings	304,701	253,711
Accumulated other comprehensive loss	(27,038)	(27,532)
Total shareholders' equity	278,278	226,800
Total liabilities and shareholders' equity	$ 673,353	$ 570,178

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Summary of Operating Lease Right-of-Use Assets and Lease Liabilities

We present below the operating lease right-of-use assets and lease liabilities as of December 31, 2023 (in thousands):


		December 31, 2023
ASSETS
Operating lease right-of-use assets		$21,645

LIABILITIES
Operating lease liabilities, current (included in accrued and other liabilities)		$6,428
Operating lease liabilities, long-term		17,694
Total operating lease liabilities		$24,122

Aggregate Future Minimum Lease Payments Under Noncancelable Operating Leases

Aggregate future minimum lease payments under noncancelable operating leases as of December 31, 2023 are as follows (in thousands):


Year Ending December 31,
2024	$	7,096
2025		6,729
2026		3,690
2027		3,769
2028		3,823
Thereafter		735
Total minimum payments required		25,842
Less short-term leases		(97	)
Less imputed interest		(1,623	)
Total operating lease liabilities	$	24,122

Schedule of Other Information Related to Leases


Weighted average remaining lease term	4.1 years
Weighted average discount rate		4	%
Supplemental cash flow information - operating cash flows (in thousands):
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	7,016

Leases - Summary of Operating Lease Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
ASSETS
Operating lease right-of-use assets	$ 21,645	$ 17,794
LIABILITIES
Operating lease liabilities, current (included in accrued and other liabilities)	$ 6,428
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued and other liabilities
Operating lease liabilities, long-term	$ 17,694	$ 14,065
Total operating lease liabilities	$ 24,122

Income Taxes - Components of Income from Domestic and Foreign Operations Before Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Domestic	$ 193,727	$ 139,217	$ 120,565
Foreign	19,944	18,904	13,507
Income before income taxes	$ 213,671	$ 158,121	$ 134,072

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	61,566,037	62,191,570
Common stock, shares outstanding	61,566,037	62,191,570

Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Accounts receivable	$ 1,179	$ 1,321
Accrued liabilities	12,255	9,208
Equity-based compensation	12,148	9,832
Capitalized R&D costs	50,654	27,516
Accrued sales taxes	189	190
Operating lease liabilities	3,219	2,974
State tax credits	3,102	2,700
Tax credit - foreign	5,397	3,108
Valuation allowance	(2,881)	(2,735)
Other	295	279
Deferred Tax Assets, Net of Valuation Allowance, Total	85,557	54,393
Deferred tax liabilities:
Intangible Assets	7,417	7,428
Depreciation	429	580
Deferred commissions	8,638	6,408
Operating lease right-of-use assets	3,030	2,771
Deferred Tax Liabilities, Net, Total	19,514	17,187
Net deferred tax assets	$ 66,043	$ 37,206

Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current:
Federal	$ 46,497	$ 42,198	$ 14,042
State	10,911	11,183	5,188
Foreign	8,539	5,492	6,309
Current Income Tax Expense (Benefit), Total	65,947	58,873	25,539
Deferred:
Federal	(23,116)	(22,383)	(427)
State	(3,132)	(5,200)	(531)
Foreign	(2,596)	(2,128)	(981)
Deferred Income Tax Expense (Benefit), Total	(28,844)	(29,711)	(1,939)
Total	$ 37,103	$ 29,162	$ 23,600

Employee Benefit Plan - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Maximum contribution percentage of eligible compensation by eligible employees toward 401(k) plan	60.00%
Maximum contribution amount that employee can contribute to 401(k) plan	$ 22,500
Eligible compensation limit	$ 330,000
Defined benefit plan percentage of employer matching contribution on 6% of employee compensation	50.00%	50.00%	50.00%
Defined benefit plan employer matching contribution	$ 7,800,000	$ 6,700,000	$ 5,200,000
Maximum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Percentage of employees' eligible compensation for employer matching contribution	6.00%	6.00%	6.00%

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Unrecognized tax benefits at January 1,	$ (10,532)	$ (13,186)	$ (12,804)
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during a prior period	(425)	(199)	(408)
Gross amount of decreases in unrecognized tax benefits as a result of tax positions taken during a prior period	908	2,583	147
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during the current period	(2,182)	(1,787)	(3,117)
Reductions to unrecognized tax benefits relating to settlements with taxing authorities			148
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations	2,543	2,057	2,848
Unrecognized tax benefits at December 31,	$ (9,688)	$ (10,532)	$ (13,186)

Segment Reporting - Schedule of Financial Information by Reportable Segment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total revenue	$ 928,725	$ 767,084	$ 663,643
Cost of revenue	430,614	358,237	297,827
Operating expenses	282,478	249,484	223,569
Depreciation and amortization	5,752	6,663	7,914
Total costs and expenses	718,844	614,384	529,310
Operating income	209,881	152,700	134,333
Americas
Segment Reporting Information [Line Items]
Total revenue	719,195	603,884	526,215
Cost of revenue	321,701	271,222	225,799
Operating expenses	257,172	227,409	202,217
Depreciation and amortization	5,164	5,964	7,020
Total costs and expenses	584,037	504,595	435,036
Operating income	135,158	99,289	91,179
EMEA
Segment Reporting Information [Line Items]
Total revenue	166,638	128,938	110,574
Cost of revenue	89,523	71,108	58,593
Operating expenses	19,889	17,187	16,496
Depreciation and amortization	503	613	738
Total costs and expenses	109,915	88,908	75,827
Operating income	56,723	40,030	34,747
APAC
Segment Reporting Information [Line Items]
Total revenue	42,892	34,262	26,854
Cost of revenue	19,390	15,907	13,435
Operating expenses	5,417	4,888	4,856
Depreciation and amortization	85	86	156
Total costs and expenses	24,892	20,881	18,447
Operating income	18,000	13,381	8,407
Cloud Subscriptions
Segment Reporting Information [Line Items]
Total revenue	254,612	176,458	122,195
Cloud Subscriptions \| Americas
Segment Reporting Information [Line Items]
Total revenue	205,611	148,943	103,863
Cloud Subscriptions \| EMEA
Segment Reporting Information [Line Items]
Total revenue	42,243	22,988	15,380
Cloud Subscriptions \| APAC
Segment Reporting Information [Line Items]
Total revenue	6,758	4,527	2,952
Software License
Segment Reporting Information [Line Items]
Total revenue	18,206	24,848	37,070
Cost of revenue	1,351	2,126	2,309
Software License \| Americas
Segment Reporting Information [Line Items]
Total revenue	12,040	16,364	29,300
Software License \| EMEA
Segment Reporting Information [Line Items]
Total revenue	2,925	6,380	5,729
Software License \| APAC
Segment Reporting Information [Line Items]
Total revenue	3,241	2,104	2,041
Maintenance
Segment Reporting Information [Line Items]
Total revenue	143,936	142,198	145,841
Maintenance \| Americas
Segment Reporting Information [Line Items]
Total revenue	114,963	113,258	113,169
Maintenance \| EMEA
Segment Reporting Information [Line Items]
Total revenue	19,721	19,784	23,091
Maintenance \| APAC
Segment Reporting Information [Line Items]
Total revenue	9,252	9,156	9,581
Services
Segment Reporting Information [Line Items]
Total revenue	487,869	394,096	334,799
Services \| Americas
Segment Reporting Information [Line Items]
Total revenue	362,979	295,998	256,392
Services \| EMEA
Segment Reporting Information [Line Items]
Total revenue	101,254	79,628	66,131
Services \| APAC
Segment Reporting Information [Line Items]
Total revenue	23,636	18,470	12,276
Hardware
Segment Reporting Information [Line Items]
Total revenue	24,102	29,484	23,738
Hardware \| Americas
Segment Reporting Information [Line Items]
Total revenue	23,602	29,321	23,491
Hardware \| EMEA
Segment Reporting Information [Line Items]
Total revenue	495	158	243
Hardware \| APAC
Segment Reporting Information [Line Items]
Total revenue	$ 5	$ 5	$ 4

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of Deferred Tax Assets and Liabilities

We present below significant components of our deferred tax assets and liabilities as of December 31, 2023 and 2022 are as follows (in thousands):


	December 31,
	2023			2022
Deferred tax assets:
Accounts receivable	$	1,179		$	1,321
Accrued liabilities		12,255			9,208
Equity-based compensation		12,148			9,832
Capitalized R&D costs		50,654			27,516
Accrued sales taxes		189			190
Operating lease liabilities		3,219			2,974
State tax credits		3,102			2,700
Tax credit - foreign		5,397			3,108
Valuation allowance		(2,881	)		(2,735	)
Other		295			279
		85,557			54,393
Deferred tax liabilities:
Intangible Assets		7,417			7,428
Depreciation		429			580
Deferred commissions		8,638			6,408
Operating lease right-of-use assets		3,030			2,771
		19,514			17,187
Net deferred tax assets	$	66,043		$	37,206

Components of Income from Domestic and Foreign Operations Before Income Tax Expense

We present below income from domestic and foreign operations before income tax expense for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Domestic	$	193,727	$	139,217	$	120,565
Foreign		19,944		18,904		13,507
Total	$	213,671	$	158,121	$	134,072

Components of Income Tax Provision

The components of our income tax provision for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands):


	Year Ended December 31,
	2023			2022			2021
Current:
Federal	$	46,497		$	42,198		$	14,042
State		10,911			11,183			5,188
Foreign		8,539			5,492			6,309
	$	65,947		$	58,873		$	25,539
Deferred:
Federal		(23,116	)		(22,383	)		(427	)
State		(3,132	)		(5,200	)		(531	)
Foreign		(2,596	)		(2,128	)		(981	)
		(28,844	)		(29,711	)		(1,939	)
Total	$	37,103		$	29,162		$	23,600

Reconciliation of Statutory U.S. Federal Rate and Tax Effective Rates


	Year Ended December 31,
	2023			2022			2021

Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
Effect of:
State income tax, net of federal benefit		3.0			3.6			3.6
State credit carryforwards		(0.2	)		1.2			(0.8	)
U.S. federal R&D tax credit		(1.8	)		(1.8	)		(1.8	)
Non-deductible equity compensation		1.1			1.1			0.9
Excess benefit of equity compensation		(3.2	)		(4.8	)		(4.9	)
Employee compensation limitation		3.4			3.7			3.4
Global Intangible Low Taxed Income (GILTI)		0.1			0.1			0.2
Foreign-derived intangible income (FDII) deduction		(3.6	)		(3.3	)		(3.1	)
Foreign operations		(2.9	)		0.5			(0.7	)
Tax contingencies		(0.3	)		(1.3	)		(0.3	)
Other permanent differences		0.7			(0.3	)		(0.6	)
Change in valuation allowance		0.1			(1.3	)		0.7
Income taxes		17.4	%		18.4	%		17.6	%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31, 2023, 2022 and 2021 (in thousands):


	December 31,
	2023			2022			2021

Unrecognized tax benefits at January 1,	$	(10,532	)	$	(13,186	)	$	(12,804	)
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during a prior period		(425	)		(199	)		(408	)
Gross amount of decreases in unrecognized tax benefits as a result of tax positions taken during a prior period		908			2,583			147
Gross amount of increases in unrecognized tax benefits as a result of tax positions taken during the current period		(2,182	)		(1,787	)		(3,117	)
Reductions to unrecognized tax benefits relating to settlements with taxing authorities		-			-			148
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations		2,543			2,057			2,848
Unrecognized tax benefits at December 31,	$	(9,688	)	$	(10,532	)	$	(13,186	)

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 176,568	$ 128,959	$ 110,472
Foreign currency translation adjustment, net of tax	494	(7,704)	(1,566)
Comprehensive income	$ 177,062	$ 121,255	$ 108,906

- Definition

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

+ References

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+ Details

Organization, Consolidation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Organization, Consolidation and Summary of Significant Accounting Policies

1. Organization, Consolidation and Summary of Significant Accounting Policies

Organization and Business

Manhattan Associates, Inc. (“Manhattan”, the “Company”, “we”, “our”, or “us”) is a developer and provider of supply chain commerce solutions that help organizations optimize the effectiveness, efficiency, and strategic advantages of their supply chains. Our solutions consist of software, services, and hardware, which coordinate people, workflows, assets, events, and tasks holistically across the functions linked in a supply chain from planning through execution. These solutions also help coordinate the actions, data exchange, and communication of participants in supply chain ecosystems, such as manufacturers, suppliers, distributors, trading partners, transportation providers, channels (such as catalogers, store retailers, and Web outlets), and consumers.

Our operations are in North and South America (the “Americas"), Europe (EMEA), and the Asia/Pacific (APAC) region. The Americas operation are conducted through the Parent Company, Manhattan Associates, Inc., and its wholly-owned subsidiary, Manhattan Associates Chile Spa. Our European and Asia Pacific operations are conducted through wholly owned subsidiaries within their respective geographies. We occasionally sell our products and services in other countries, such as countries in Latin America, Eastern Europe, Middle East, and Asia, through our direct sales channel as well as various reseller channels.

Risks Associated with Single Business Line, Technological Advances, and Foreign Operations

Principles of Consolidation and Foreign Currency Translation

Summary of Significant Accounting Policies

Cash and Cash Equivalents

We consider all highly liquid investments purchased with original maturities of three months or less to be cash or cash equivalents.

Concentrations of Credit Risk

Fair Value Measurement

•

Level 1–Quoted prices in active markets for identical instruments.

•

Level 3–Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Use of Estimates

Revenue Recognition

Nature of Products and Services

Significant Judgments

Contract Balances

No revenue was recognized in 2023 from performance obligations that were satisfied in prior periods.

Remaining Performance Obligations

Returns and Allowances

We have not experienced significant returns or warranty claims to date and, as a result, have not recorded a provision for the cost of returns and product warranty claims.

Deferred Commissions

Property and Equipment

Property and equipment, at cost, consist of the following (in thousands):


	December 31,
	2023			2022
Office equipment	$	40,072		$	39,273
Furniture and fixtures		5,005			4,871
Leasehold improvement		23,849			23,518
Property and equipment, gross		68,926			67,662
Less accumulated depreciation		(57,131	)		(54,859	)
Property and equipment, net	$	11,795		$	12,803

Software Development Costs

Impairment of Long-Lived Assets

Goodwill and Impairment of Goodwill

Goodwill

Impairment of Goodwill

Guarantees and Indemnities

Segment Information

We have three reportable segments as defined by the FASB Codification topic for segment reporting: Americas, EMEA, and APAC. See Note 8 for discussion of our reportable segments.

Basic and Diluted Net Income Per Share

Basic net income per share is computed using net income divided by the weighted average number of shares of common stock outstanding (“Weighted Shares”) for the period presented.

per share and the shares used in the computation of earnings per share for the years ended December 31, 2023, 2022 and 2021 (in thousands, except per share data):


	Year Ended December 31,
	2023			2022			2021
	(in thousands, except per share data)
Net income	$	176,568		$	128,959		$	110,472
Earnings per share:
Basic	$	2.86		$	2.05		$	1.74
Effect of CESs		(0.04	)		(0.02	)		(0.02	)
Diluted	$	2.82		$	2.03		$	1.72

Weighted average number of shares:
Basic		61,817			62,768			63,445
Effect of CESs		791			640			878
Diluted		62,608			63,408			64,323

The number of anti-dilutive CESs in 2023, 2022 and 2021 was immaterial. See Note 2 for further information on those securities.

Accumulated Other Comprehensive Income

Accounting for Income Taxes

Equity-Based Compensation

We account for equity-based compensation in accordance with ASC 718, Compensation – Stock Compensation. See Note 2 for further information.

Advertising Costs

We expense advertising costs as incurred. Advertising expense was $2.4 million in 2023, $2.3 million in 2022, and $2.3 million in 2021.

Retirement of Repurchased Shares

Recent Accounting Pronouncements

Leases - Aggregate Future Minimum Lease Payments Under Noncancelable Operating Leases (Detail) $ in Thousands	Dec. 31, 2023 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2024	$ 7,096
2025	6,729
2026	3,690
2027	3,769
2028	3,823
Thereafter	735
Total minimum payments required	25,842
Less short-term leases	(97)
Less imputed interest	(1,623)
Total operating lease liabilities	$ 24,122

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Total revenue	$ 928,725	$ 767,084	$ 663,643
Total costs	430,614	358,237	297,827
Research and development	126,814	111,877	97,628
Sales and marketing	74,490	64,537	57,855
General and administrative	81,174	73,070	68,086
Depreciation and amortization	5,752	6,663	7,914
Total costs and expenses	718,844	614,384	529,310
Operating income	209,881	152,700	134,333
Interest income	5,304	596	68
Other (loss) income, net	(1,514)	4,825	(329)
Income before income taxes	213,671	158,121	134,072
Income tax provision	37,103	29,162	23,600
Net income	$ 176,568	$ 128,959	$ 110,472
Basic earnings per share	$ 2.86	$ 2.05	$ 1.74
Diluted earnings per share	$ 2.82	$ 2.03	$ 1.72
Weighted average number of shares:
Basic	61,817	62,768	63,445
Diluted	62,608	63,408	64,323
Cloud Subscriptions
Total revenue	$ 254,612	$ 176,458	$ 122,195
Software License
Total revenue	18,206	24,848	37,070
Total costs	1,351	2,126	2,309
Maintenance
Total revenue	143,936	142,198	145,841
Services
Total revenue	487,869	394,096	334,799
Hardware
Total revenue	24,102	29,484	23,738
Cloud Subscriptions, Maintenance and Services
Total costs	$ 429,263	$ 356,111	$ 295,518

Income Taxes - Reconciliation of Statutory U.S. Federal Rate and Tax Effective Rates (Detail)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	21.00%	21.00%	21.00%
State income tax, net of federal benefit	3.00%	3.60%	3.60%
State credit carryforwards	(0.20%)	1.20%	(0.80%)
U.S. federal R&D tax credit	(1.80%)	(1.80%)	(1.80%)
Non-deductible equity compensation	1.10%	1.10%	0.90%
Excess benefit of equity compensation	(3.20%)	(4.80%)	(4.90%)
Employee compensation limitation	3.40%	3.70%	3.40%
Global Intangible Low Taxed Income (GILTI)	0.10%	0.10%	0.20%
Foreign-derived intangible income (FDII) deduction	(3.60%)	(3.30%)	(3.10%)
Foreign operations	(2.90%)	0.50%	(0.70%)
Tax contingencies	(0.30%)	(1.30%)	(0.30%)
Other permanent differences	0.70%	(0.30%)	(0.60%)
Change in valuation allowance	0.10%	(1.30%)	0.70%
Income taxes	17.40%	18.40%	17.60%

Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

7. Leases

We lease our facilities and some of our equipment under noncancelable operating lease arrangements that expire at various dates through 2029. The total operating lease liabilities for these leases at December 31, 2023 was approximately $24.1 million. For a few of our facility leases, we have certain options to extend the lease term for up to 10 years, at our sole discretion. We have no finance leases.

We present below the operating lease right-of-use assets and lease liabilities as of December 31, 2023 (in thousands):


		December 31, 2023
ASSETS
Operating lease right-of-use assets		$21,645

LIABILITIES
Operating lease liabilities, current (included in accrued and other liabilities)		$6,428
Operating lease liabilities, long-term		17,694
Total operating lease liabilities		$24,122

Aggregate future minimum lease payments under noncancelable operating leases as of December 31, 2023 are as follows (in thousands):


Year Ending December 31,
2024	$	7,096
2025		6,729
2026		3,690
2027		3,769
2028		3,823
Thereafter		735
Total minimum payments required		25,842
Less short-term leases		(97	)
Less imputed interest		(1,623	)
Total operating lease liabilities	$	24,122

We are applying the practical expedient to not separate lease and non-lease components, which allows us to account for lease and non-lease components as a single lease component. The total lease cost in 2023 was $8.1 million, consisting of $7.8 million of operating lease costs, and $0.3 million of short-term lease costs. The total lease cost in 2022 was $7.7 million, consisting of $7.3 million of operating lease costs, and $0.4 million of short-term lease costs. Total lease costs in 2021 were $7.9 million, consisting of $7.5 million of operating lease costs, and $0.4 million of short-term lease costs. Our variable lease cost during 2023, 2022 and 2021 were immaterial.


Weighted average remaining lease term	4.1 years
Weighted average discount rate		4	%
Supplemental cash flow information - operating cash flows (in thousands):
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	7,016

See Note 9 for information regarding an amendment to our headquarters lease that we entered into after December 31, 2024.