View Filing Data

Cash and cash equivalents

$ 222,438

$ 156,299

Restricted cash

^[1]

4,377

89,826

Marketable securities, current

6,989

3,111

Accounts receivable, net of allowances of $3,492 and $3,107 at September 30, 2018 and December 31, 2017, respectively

52,617

78,186

Prepaid expenses

46,922

33,957

Other current assets

14,115

9,600

Total current assets

347,458

370,979

Marketable securities, non-current

8,716

Property and equipment, net

80,519

111,825

Goodwill

234,480

237,303

Intangible assets, net

117,448

132,167

Note receivable from related party

8,940

5,236

^[1]

66,089

73,984

Equity method investment

30,694

33,917

Total assets

894,344

965,411

14,300

5,959

53,794

72,739

Mandatorily redeemable financial instrument

54,046

75,829

Short-term debt

228,764

37,959

Lease financing obligation

350,904

192,486

10,006

11,183

Convertible debt, net of debt issuance costs

227,704

Deferred tax liabilities

12,109

13,735

29,815

25,241

Commitments and contingencies

11,329

6,195

Redeemable noncontrolling interest

12,500

25,280

Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 195 shares issued and outstanding at September 30, 2018

176,160

Common stock, $0.0001 par value; 100,000 shares authorized, 49,817 and 52,024 shares issued; 42,655 and 46,965 outstanding at September 30, 2018 and December 31, 2017, respectively

Treasury stock, at cost (7,162 and 5,059 shares at September 30, 2018 and December 31, 2017, respectively)

(82,087)

(105,584)

Additional paid-in capital

561,144

597,553

(30,557)

(23,373)

(156,984)

(5,014)

291,521

463,587

$ 894,344

$ 965,411

[1]	See Note 5 -Investments in Affiliates and Related Transactions for related party transactions reflected in this account.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 3,492	$ 3,107
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (shares)	10,000,000	10,000,000
Preferred stock, shares issued (shares)	195,000	0
Preferred stock, shares outstanding (shares)	195,000	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (shares)	100,000,000	100,000,000
Common stock, shares issued (shares)	49,817,000	52,024,000
Common stock, shares outstanding (shares)	42,655,000	46,965,000
Treasury stock, shares (shares)	7,162,000	5,059,000

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2018

Sep. 30, 2017

Income Statement [Abstract]

$ 83,286

$ 91,015

$ 243,737

$ 296,102

^[1]

43,714

45,576

127,788

139,386

18,684

20,926

59,789

67,234

27,320

34,881

99,368

103,049

Restructuring charges

4,539

2,312

8,425

11,715

23,658

23,459

70,330

71,098

117,915

127,154

365,700

392,482

(34,629)

(36,139)

(121,963)

(96,380)

203

3,274

7,518

9,157

Other (expense) income, net

(1,370)

(25,555)

(3,935)

(48,016)

(13,439)

(256)

(9,180)

2,374

283

645

1,626

(48,952)

(58,031)

(127,489)

(131,239)

2,308

12,825

1,604

17,973

Net loss from discontinued operations, net of tax

(46,644)

(45,206)

(125,885)

(113,266)

^[2]

8,842

^[3]

(14,067)

^[3]

Net (income) loss attributable to redeemable noncontrolling interests

(46,644)

(36,364)

(125,885)

(127,333)

(422)

1,276

2,122

6,980

Net loss attributable to Synchronoss

(7,463)

(18,076)

$ (54,529)

$ (35,088)

$ (141,839)

$ (120,353)

Basic:

Discontinued operations (usd per share)

$ (1.38)

$ (0.98)

$ (3.51)

$ (2.38)

^[2]

0.00

0.20

0.00

(0.32)

Basic (usd per share)

(1.38)

(0.78)

(3.51)

(2.70)

Diluted:

Discontinued operations (usd per share)

(1.38)

(0.98)

(3.51)

(2.38)

^[2]

0.00

0.20

0.00

(0.32)

Diluted (usd per share)

$ (1.38)

$ (0.78)

$ (3.51)

$ (2.70)

Weighted-average common shares outstanding:

Basic (in shares)

39,612

44,893

40,405

44,576

Diluted (in shares)

39,612

44,893

40,405

44,576

[1]	Cost of revenues excludes depreciation and amortization which are shown separately.
[2]	See Note 3 - Acquisitions and Divestitures for transactions classified as discontinued operations.
[3]	See Note 3 - Acquisitions and Divestitures for transactions classified as discontinued operations.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) (Unaudited) Statement - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (46,644)	$ (36,364)	$ (125,885)	$ (127,333)
Other comprehensive income, net of tax:
Foreign currency translation adjustments	(1,544)	4,631	(6,529)	17,003
Unrealized loss on available for sale securities	(3)	(7)	(52)	20
Net (loss) income on intra-entity foreign currency transactions	(72)	932	(603)	1,940
Total comprehensive income	(1,619)	5,556	(7,184)	18,963
Comprehensive loss	(48,263)	(30,808)	(133,069)	(108,370)
Comprehensive (income) loss attributable to redeemable noncontrolling interests	(422)	1,276	2,122	6,980
Comprehensive loss attributable to Synchronoss	$ (48,685)	$ (29,532)	$ (130,947)	$ (101,390)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands

9 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Operating activities:

Income from discontinued operations, net of taxes

$ (125,885)

$ (113,266)

^[1],[2]

(14,067)

Adjustments to reconcile Net Loss to net cash used in operating activities:

Depreciation and amortization expense

70,330

71,098

Change in fair value of financial instruments

(3,849)

Amortization of debt issuance costs

1,060

12,523

Accrued PIK interest

(7,037)

(8,805)

Allowance for loan losses

18,225

Loss (earnings) from equity method investments

(71)

(1,626)

Loss (Gain) on disposals

277

(4,947)

Discontinued operations non-cash and working capital adjustments

^[2]

68,377

Amortization of bond premium

219

Deferred income taxes

(1,648)

(8,937)

Stock-based compensation

22,040

14,427

Changes in operating assets and liabilities:

Accounts receivable, net of allowance for doubtful accounts

28,789

24,029

Prepaid expenses and other current assets

(12,844)

(29,143)

947

2,768

8,195

(2,294)

(24,539)

(16,775)

Net cash used in operating activities

(3,886)

594

Deferred revenues

(30,841)

4,732

(60,662)

(1,093)

Investing activities:

Purchases of fixed assets

(8,565)

(10,315)

Purchases of intangible assets and capitalized software

(11,012)

(7,848)

Proceeds from the sale of SpeechCycle

13,500

Purchases of marketable securities available for sale

(15,784)

(219)

Maturity of marketable securities available for sale

3,050

10,856

Equity investment distributions

608

Investing in discontinued operations

^[2]

(11,429)

Investment in note receivable

(6,187)

Business acquired, net of cash

(9,734)

(815,008)

Net cash used in investing activities

(42,045)

(826,042)

Share-based compensation-related proceeds, net of taxes paid on withholding shares

2,460

Taxes paid on withholding shares

(410)

Proceeds from issuance of long term debt

900,000

Repayment of long term debt

(4,500)

Repayment of revolving line of credit

(29,000)

Proceeds from the sale of treasury stock in connection with an employee stock purchase plan

1,047

Proceeds from issuance of preferred stock

86,220

Payments on capital obligations

(1,018)

(2,244)

Net cash provided by financing activities

85,202

826,998

Effect of exchange rate changes on cash

(1,805)

4,938

Net decrease in cash, restricted cash and cash equivalents

(19,310)

4,801

Cash, restricted cash and cash equivalents, beginning of period

246,125

211,433

Cash, restricted cash and cash equivalents, end of period

$ 226,815

$ 216,234

Supplemental disclosures of non-cash investing and financing activities:

Issuance of common stock in connection with Intralinks acquisition

4,700

Total cash, cash equivalents and restricted cash

Total cash, cash equivalents and restricted cash

$ 246,125

$ 211,433

Revolving Facility

Payments of debt issuance costs

(3,692)

Amendment

Payments of debt issuance costs

(16,776)

Long-term Debt

Payments of debt issuance costs

$ 0

$ (19,887)

[1]	See Note 3 - Acquisitions and Divestitures for transactions classified as discontinued operations.
[2]	See Note 3 - Acquisitions and Divestitures for transactions classified as discontinued operations.

Description of Business	9 Months Ended
Description of Business	Sep. 30, 2018
Description of Business
Description of Business	Description of Business General Synchronoss Technologies, Inc. (“Synchronoss” or the “Company”) is a global software and services company that provides essential technologies for the mobile transformation of business. The Company’s portfolio, contains offerings such as personal cloud, secure-mobility, identity management, digital transformation and scalable messaging platforms, products and solutions. These essential technologies create a better way of delivering the transformative mobile experiences that our customers need to help them stay ahead of the curve in competition, innovation, productivity, growth and operational efficiency. Synchronoss’ products and platforms are designed to be carrier-grade, flexible and scalable, enabling multiple converged communication services to be managed across a range of distribution channels including e-commerce, m-commerce, telesales, customer stores, indirect and other retail outlets. This business model allows the Company to meet the rapidly changing converged services and connected devices offered by their customers. Synchronoss’ products, platforms and solutions enable its customers to acquire, retain and service subscribers and employees quickly, reliably and cost-effectively with white label and custom-branded solutions. Synchronoss’ customers can simplify the processes associated with managing the customer experience for procuring, activating, connecting, backing-up, synchronizing and sharing/collaboration with connected devices and contents from these devices and associated services. The extensibility, scalability, reliability and relevance of the Company’s platforms enable new revenue streams and retention opportunities for their customers through new subscriber acquisitions, sale of new devices, accessories and new value-added service offerings in the Cloud. By using the Company’s technologies, Synchronoss’ customers can optimize their cost of operations while enhancing their customer experience. The Company currently operates in and markets its solutions and services directly through its sales organizations in the United States, Canada and Latin America (collectively, the “Americas”); Europe, Middle East and Africa (collectively, “EMEA”); and Australia, Japan, Southeast Asia and China (collectively, “APAC”). Service Providers, Retailers, OEMs, Re-sellers and Service Integrators The Company’s products and platforms provide end-to-end seamless integration between customer-facing channels/applications, communication services, or devices and “back-office” infrastructure-related systems and processes. Synchronoss’ customers rely on these solutions and technology to automate the process of activation and content and settings management for their subscribers’ devices while delivering additional communication services. Synchronoss’ portfolio includes: cloud-based sync, backup, storage and content engagement capabilities, broadband connectivity solutions, analytics, white label messaging, identity/access management that enable communications service providers (“CSPs”), cable operators/multi-services operators (“MSOs”) and original equipment manufacturers (“OEMs”) with embedded connectivity (e.g. smartphones, laptops, tablets and mobile internet devices (“MIDs”) such as automobiles, wearables for personal health and wellness, and connected homes), multi-channel retailers, as well as other customers to accelerate and monetize value-add services for secure and broadband networks and connected devices.

Basis of Presentation and Consolidation

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Consolidation

The accompanying interim unaudited condensed consolidated financial statements have been prepared by Synchronoss and in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2017. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018.

The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and variable interest entities (“VIE”) in which the Company is the primary beneficiary and entities in which the Company has a controlling interest. Investments in less than majority-owned companies in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. Investments in less than majority-owned companies in which the Company does not have the ability to exert significant influence over the operating and financial policies of the investee are accounted for using the cost method. All material intercompany transactions and accounts are eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year's presentation.

For further information about the Company’s basis of presentation and consolidation or its significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2017.

Restricted Cash

Restricted cash includes amounts to various deposits, escrows and other cash collateral that are restricted by contractual obligation. During the nine months ended September 30, 2018, $87.3 million was released from escrow on notification that Siris Capital Group, LLC (“Siris”) would exercise its option on the issuance of preferred stock. These funds were restricted from the proceeds received upon the sale of Intralinks, through the date of issuance of preferred stock. Remaining amounts were primarily attributed to cash held in transit, and operating cash held by the Company’s consolidated joint venture Zentry, LLC (“Zentry”), which cannot be used to fulfill the obligations of the Company as a whole.

Out of Period Adjustments

The Company as a part of implementation of more comprehensive reconciliation controls and other ongoing remediation efforts related to the material weaknesses described in Part II, Item 9A of its Annual Report on Form 10-K/A for the year ended December 31, 2017, identified certain adjustments that were not recorded in its financial statements for March 31, 2018 and June 30, 2018 quarterly periods. Specifically, the Company identified an adjustment to cost of revenues, which resulted in reporting an understatement for the three-month period ended March 31, 2018, of approximately $4.9 million, as well as other immaterial adjustments. The Company, considered the effects of all adjustments identified on its current period and prior period financial statements and determined that the adjustments did not have a material effect on its financial statements presented for the nine-month period ended September 30, 2018. Accordingly, the Company recorded this material adjustment of approximately $4.9 million as an out-of-period adjustment to cost of revenues in the three-month period ended September 30, 2018.

Recently Issued Accounting Standards

Recent accounting pronouncements adopted



Standard	Description	Effect on the financial statements
Accounting Standards Update (“ASU”) 2017-09 Stock Compensation (Topic 718), Scope of Modification	In May 2017, the Financial Accounting Standards Board (“FASB”) issued guidance which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Entities will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The guidance also clarifies that a modification to an award could be significant and therefore require disclosure, even if modification accounting is not required. ASU 2017-09 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2017. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued. ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date.	This ASU did not have a material effect on the Company’s condensed consolidated financial statements as of the date of adoption.
Date of adoption: January 1, 2018.

Standards issued not yet adopted



Standard	Description	Effect on the financial statements
ASU 2018-15 Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Cloud Computing Arrangements	In August 2018, the FASB issued final guidance requiring a customer in a cloud computing arrangement that is a service contract to follow the internal use software guidance in Accounting Standards Codification (“ASC”) 350-402 Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40) to determine which implementation costs to capitalize as assets. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019. Early adoption of the amendments is permitted, including adoption in any interim period, for all entities and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.	The Company is currently reviewing its cloud computing arrangements to evaluate the impact of adoption of the final guidance but does not expect that the pending adoption of this ASU will have a material effect on its condensed consolidated financial statements.
Date of adoption: January 1, 2020.
Update 2018-07—Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting	In June 2018, the FASB issued ASU 2018-07, regarding ASC Topic 718 “Compensation - Stock Compensation,” which largely aligns the accounting for share-based compensation for non-employees with employees. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606.	The Company does not expect the adoption of this standard to have a material effect on its condensed consolidated financial statements.
Date of adoption: January 1, 2019.
ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	In June 2016, the FASB issued ASU 2016-13 which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU is effective for public companies in annual periods beginning after December 15, 2019, and interim periods within those years. Early adoption is permitted beginning after December 15, 2018 and interim periods within those years.	The Company is currently evaluating the impact of the adoption of this ASU on its condensed consolidated financial statements.
Date of adoption: January 1, 2020.



ASU 2016-02 Leases (Topic 842 or “ASC 842”)	In February 2016, the FASB issued ASU 2016-02 which requires lessees to recognize, for all leases of 12 months or more, a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature of an entity’s leasing activities. The ASU is effective for public companies in interim and annual periods beginning after December 15, 2018, with early adoption permitted, and must be adopted using a modified retrospective approach.	The Company has elected to apply the transition requirements as of January 1, 2019 and as such, the Company will neither restate comparative periods for the effects of applying ASC 842 nor provide the disclosures required by ASC 842 for the comparative periods. In addition, there are several practical expedients and accounting policy elections offered within ASC 842 to both ease the transition to, and simplify the adoption of, ASC 842. In connection therewith, the Company elected the package of transition practical expedients related to lease identification, lease classification, and initial direct costs. The Company also elected the lessor practical expedient to not separate lease and non-lease components when the requisite criteria is met to be treated as such. In addition, the Company made the following accounting policy elections: (1) the Company will not separate lease and non-lease components by class of underlying asset (2) the Company will apply the portfolio approach, specifically in the development of the Company’s discount rates (3) the Company will apply the short-term lease exemption by class of underlying asset (4) the Company will apply a capitalization threshold policy.
Date of adoption: January 1, 2019.		Adoption of the new standard will result in the recording of additional net lease assets and lease liabilities as of January 1, 2019. The difference between the additional lease assets and lease liabilities, net of the deferred tax impact, will be recorded as an adjustment to retained earnings. The standard will not materially impact our consolidated net earnings and will have no impact on cash flows.

In May 2014, the FASB issued a new accounting standard related to revenue recognition, ASU 2014-09, “Revenue from Contracts with Customers,” (“Topic 606”). The new standard supersedes the existing revenue recognition requirements under U.S. GAAP and requires entities to recognize revenue when they transfer control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. It also requires increased disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers.

On January 1, 2018, the Company adopted Topic 606 applying the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The Company recorded a net reduction to opening retained earnings of approximately $10.1 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606. The impact to revenues for the nine months ended September 30, 2018 was an increase of $31.9 million as a result of adopting Topic 606. The impact to costs was not material.

The impact of adoption primarily relates to (1) the delayed pattern of recognition under Topic 606 for certain professional services revenue when such professional services involve the customization of features and functionality for subscription services customers, and (2) the earlier pattern of recognition under Topic 606 for license revenue when the Company provides hosting services for on-premise license customers. In the case of professional services that involve the customization of features and functionality for subscription services, under historic accounting policies the professional services were considered to have standalone value, and as a result were recognized as the services were performed. Under Topic 606, such professional services are not considered to be a distinct performance obligation within the context of the subscription services contract, and as such each month’s customization services revenue is recognized over the shorter of the estimated remaining life of the subscription software (typically three years) or the remaining term of the subscription services contract. In the case of license contracts sold in association with hosting, under historic accounting policies the license revenue was recognized over the hosting term due to the lack of vendor specific objective evidence (“VSOE”) of fair value for the hosting services. Under Topic 606, VSOE is no longer required in order separate revenue between the license and the hosting elements, and the license revenue is generally recognized upon delivery of the software based on the relative allocation of the contract price based on the established standalone selling price (“SSP”).

Additional impacts of adoption include (1) in certain cases changes in the amount allocated to the various performance obligations in accordance with the relative standalone selling price method required by Topic 606 compared to the amount allocated to the various elements in accordance with the residual method or the relative selling price method, as applicable, under historic accounting policies, (2) the capitalization and subsequent amortization of certain sales commissions as costs to obtain a contract under ASC 340-40, whereas under historic accounting policies all such amounts were expensed as incurred (3) the timing and amount of revenue recognition for certain sales contracts that are considered to involve variable consideration under Topic 606, but were considered to either not be fixed or determinable or to involve contingent revenue features under historic accounting policies, (4) in certain limited cases, the accounting for discounted customer options to purchase future software or services as material rights under Topic 606, as well as (5) the income tax impact of the above items, as applicable.

Changes in accounting policies as a result of adopting Topic 606 and nature of goods

The following is a description of principal activities from which the Company generates revenue. Revenues are recognized when control of the promised goods or services are transferred to the Company’s customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company generates all of its revenue from contracts with customers.

Subscription and Transaction revenues consist of revenues derived from the processing of transactions through the Company’s service platforms, providing enterprise portal management services on a subscription basis and maintenance agreements on software licenses. The Company generates revenue from Subscription services from monthly active user fees, software as a service (“SaaS”) fees, hosting and storage fees, and fees for the related maintenance support for those services. In most cases, the subscription or transaction arrangement is a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). The Company applies a measure of progress (typically time-based) to any fixed consideration and allocates variable consideration to the distinct periods of service based on usage, under Topic 606 Section 10-25-14(b). When the Company does not allocate variable consideration to distinct periods of service, the total estimated transaction price is recognized ratably over the term of the contract, where the level of service provided to the customer does not vary significantly from one period to another.

Transaction service arrangements include services such as processing equipment orders, new account set‑up and activation, number port requests, credit checks and inventory management.

Transaction revenues are principally based on a contractual price per transaction and are recognized based on the number of transactions processed during each reporting period. Revenues are recorded based on the total number of transactions processed at the applicable price established in the relevant contract.

Many of the Company’s contracts guarantee minimum volume transactions from the customer. In these instances, if the customer’s total estimated transaction volume for the period is expected to be less than the contractual amount, the Company records revenues at the minimum guaranteed amount on a straight line based over the period covered by the minimum. Set‑up fees for transactional service arrangements are deferred until set up activities are completed and recognized on a straight‑line basis over remaining expected customer relationship period. Revenues are presented net of discounts, which are volume level driven.

In accordance with Topic 606 Section 10-50-20, any credits due to customers, which are generally performance driven and based upon system availability or response times to incidents, are determined and accounted for in the period in which the services are provided. The Company recognizes revenues from support and maintenance performance obligations over the service delivery period.

The Company’s software licenses typically provide for a perpetual or term right to use the Company’s software. The Company has concluded that in most cases its software license is distinct as the customer can benefit from the software on its own. Software revenue is typically recognized when the software is delivered to the customer. Contracts that include software customization or specified upgrades may result in the combination of the customization services with the software license as one performance obligation. The Company does not have a history of returns, or refunds of is software licenses, however, in limited instances, the Company may constrain consideration to high-risk customers, until collection is resolved.

The Company’s professional services include software development and customization. The contracts generally include project deliverables specified by each customer. The performance obligations in the agreements are generally combined into one deliverable and generally result in the transfer of control over time. The underlying deliverable is owned and controlled by the customer and does not create an asset with an alternative use to us. The Company recognizes revenue on fixed fee contracts on the proportion of labor hours expended to the total hours expected to complete the contract performance obligation.

Most of the Company’s contracts with customers contain multiple performance obligations which generally include either 1) a perpetual software license with support and maintenance and sometimes a hosting agreement or 2) a term SaaS agreement, in many cases these are sold along with professional services. For these contracts, the Company accounts for individual goods and services separately if they are distinct performance obligations. This often requires significant judgment based upon knowledge of the products, the solution provided and the structure of the sales contract. In SaaS agreements, the Company provides a service to the customer which combines the software functionality, maintenance and hosting into a single performance obligation when the customer doesn’t have the ability to take possession of the underlying software license. The Company may also sell the same three goods and services in a contract, but there may be three performance obligations, where the customer has the right to take possession of the software license without significant penalty.

The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company estimates standalone selling prices of software based on observable inputs of past transactions to similarly situated customers. When such observable data is not available for certain software licenses because there is a limited number of transactions or prices are highly variable, the Company will estimate the standalone selling price using the residual approach. Standalone selling prices of services are typically determined based on observable transactions when these services are sold on a standalone basis to similarly situated customers or estimated using a cost plus margin approach.

Estimating the transaction price of variable consideration including the variable quantity subscription or transaction contracts in a multiple performance obligation arrangement requires significant judgment. The Company generally estimates this variable consideration at the most likely amount to which the Company expects to be entitled and in certain cases based on the expected value. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. The Company reviews and update these estimates on a quarterly basis.

The Company’s typical performance obligations include the following:



Performance Obligation	When Performance Obligation is Typically Satisfied	When Payment is Typically Due	How Standalone Selling Price is Typically Estimated
Software License
Software License	Upon shipment or made available for download (point in time)	Within 90 days of delivery	Observable transactions or residual approach when prices are highly variable or uncertain
Software License with significant customization	Over the performance of the customization and installation of the software (over time)	Within 90 days of services being performed	Residual approach
Hosting Services	As hosting services are provided (over time)	Within 90 days of services being provided	Estimated using a cost-plus margin approach
Professional Services
Consulting	As work is performed (over time)	Within 90 days of services being performed	Observable transactions
Customization	SaaS: Over the remaining term of the SaaS agreement License: Over the performance of the customization and installation of the software (over time)	Within 90 days of services being performed	Observable transactions
Transaction Services	As transaction is processed (over time)	Within 90 days of transaction	Observable transactions
Subscription Services
Customer Support	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable transactions
SaaS	Over the course of the SaaS service once the system is available for use (over time)	Within 90 days of services being performed	Estimated using a cost-plus margin approach

Disaggregation of revenue

The Company disaggregates revenue from contracts with customers into the nature of the products and services and geographical regions. The Company’s geographic regions are the Americas, EMEA, and APAC. The majority of the Company’s revenue is from the Technology, Media and Telecom (collectively, “TMT”) sector.



	Three Months Ended September 30, 2018								Three Months Ended September 30, 2017
	Cloud		Digital		Messaging		Total		Cloud		Digital		Messaging		Total
Geography
Americas	$	41,029	$	24,563	$	2,714	$	68,306	$	49,555	$	28,071	$	2,125	$	79,751
APAC	—		2,082		4,647		6,729		—		1,637		4,540		6,177
EMEA	1,967		2,216		4,068		8,251		1,708		634		2,745		5,087
Total	$	42,996	$	28,861	$	11,429	$	83,286	$	51,263	$	30,342	$	9,410	$	91,015

Service Line
Professional Services	$	2,982	$	4,051	$	1,728	$	8,761	$	4,309	$	6,990	$	1,809	$	13,108
Transaction Services	1,918		2,845		—		4,763		2,883		4,113		—		6,996
Subscription Services	38,096		20,572		7,976		66,644		41,831		17,666		5,706		65,203
License	—		1,393		1,725		3,118		2,240		1,573		1,895		5,708
Total	$	42,996	$	28,861	$	11,429	$	83,286	$	51,263	$	30,342	$	9,410	$	91,015



	Nine Months Ended September 30, 2018								Nine Months Ended September 30, 2017
	Cloud		Digital		Messaging		Total		Cloud		Digital		Messaging		Total
Geography
Americas	$	113,452	$	65,614	$	7,585	$	186,651	$	175,560	$	75,371	$	5,812	$	256,743
APAC	—		4,697		30,287		34,984		—		5,157		17,864		23,021
EMEA	6,568		3,747		11,787		22,102		5,248		2,630		8,460		16,338
Total	$	120,020	$	74,058	$	49,659	$	243,737	$	180,808	$	83,158	$	32,136	$	296,102

Service Line
Professional Services	$	10,002	$	14,053	$	8,118	$	32,173	$	23,731	$	19,307	$	5,423	$	48,461
Transaction Services	6,703		6,740		—		13,443		9,098		15,058		—		24,156
Subscription Services	102,891		50,103		23,709		176,703		140,224		40,107		21,708		202,039
License	424		3,162		17,832		21,418		7,755		8,686		5,005		21,446
Total	$	120,020	$	74,058	$	49,659	$	243,737	$	180,808	$	83,158	$	32,136	$	296,102

Trade Accounts Receivable and Contract balances

The Company classifies its right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, the Company recognizes a receivable for revenues related to its time and materials and transaction or volume-based contracts. The Company presents such receivables in Trade accounts receivable, net in its consolidated statements of financial position at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and other applicable factors.

A contract asset is a right to consideration that is conditional upon factors other than the passage of time. For example, the Company would record a contract asset if it records revenue on a professional services engagement but are not entitled to bill until the Company achieves specified milestones. Contract asset balance at September 30, 2018 is $3.6 million.

Amounts collected in advance of services being provided are accounted for as contract liabilities, which are presented as deferred revenue on the accompanying balance sheet and are realized with the associated revenue recognized under the contract. Nearly all of the Company's contract liabilities balance is related to services revenue, primarily subscription services contracts.

The Company’s contract assets and liabilities are reported in a net position on a customer basis at the end of each reporting period.

Significant changes in the contract liabilities balance (current and noncurrent) during the period are as follows (in thousands):



	Contract Liabilities*
Balance - January 1, 2018	$	115,009
Revenue recognized in the period	(99,405		)
Amounts billed but not recognized as revenue	68,257
Balance - September 30, 2018	$	83,861

________________________________


*	Comprised of Deferred Revenue

Revenues recognized during the nine months ended September 30, 2018 for performance obligations satisfied or partially satisfied in previous periods were immaterial.

Contract acquisition costs

In connection with the adoption of Topic 606 and the related cost accounting guidance under Accounting Standards Codification (“ASC”) 340, the Company is required to capitalize certain contract acquisition costs consisting primarily of commissions and bonuses paid when contracts are signed. The Company adopted Topic 606 on January 1, 2018 and capitalized $0.7 million in contract acquisition costs related to contracts that were not completed. For contracts that have a duration of less than one year, the Company follows a Topic 606 practical expedient and expenses these costs over the estimated customer life, because it does not pay commissions upon renewals that are commensurate with the initial contract. In the nine months ended September 30, 2018, the amount of amortization was immaterial and there was no impairment loss in relation to costs capitalized.

Contract Fulfillment Costs

Under ASC 340-40, the Company evaluates whether or not it should capitalize the costs of fulfilling a contract. Such costs would be capitalized when they are not within the scope of other standards and: (1) are directly related to a contract; (2) generate or enhance resources that will be used to satisfy performance obligations; and (3) are expected to be recovered. No such costs were capitalized as of September 30, 2018.

Transaction price allocated to the remaining performance obligations

Topic 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of September 30, 2018. The Company has elected not to disclose transaction price allocated to remaining performance obligations for:


1.	Contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty;


2.	Contracts for which the Company recognizes revenues based on the right to invoice for services performed;

Variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with Topic 606 Section 10-25-14(b), for which the criteria in Topic 606 Section 10-32-40 have been met. This applies to a limited number of situations where we are dependent upon data from a third party or where fees are highly variable.

Many of the Company’s performance obligations meet one or more of these exemptions. Specifically, the Company has excluded the following from our remaining performance obligations, all of which will be resolved in the period in which amounts are known:

•consideration for future transactions, above any contractual minimums

•consideration for success-based transactions contingent on third party data

•credits for failure to meet future service level requirements

As of September 30, 2018, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $401.9 million, of which approximately 87.4% is expected to be recognized as revenues within 2 years, and the remainder thereafter.

Estimates of revenue expected to be recognized in future periods also exclude unexercised customer options to purchase services that do not represent material rights to the customer. Customer options that do not represent a material right are only accounted for in accordance with Topic 606 when the customer exercises its option to purchase additional goods or services.

In accordance with Topic 606, the disclosure of the impact of adoption to the Company’s Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations was as follows:



	September 30, 2018
	As Reported			Impacts of the New Revenue Standard			Adjusted amounts under prior GAAP
ASSETS
Current assets:
Cash and cash equivalents	$	222,438		$	—		$	222,438
Restricted cash**	4,377			—			4,377
Marketable securities, current	6,989			—			6,989
Accounts receivable, net	52,617			19,718			32,899
Prepaid expenses	46,922			—			46,922
Other current assets ⁽²⁾	14,115			(415		)	14,530
Total current assets	347,458			19,303			328,155
Marketable securities, non-current	8,716			—			8,716
Property and equipment, net	80,519			—			80,519
Goodwill	234,480			—			234,480
Intangible assets, net	117,448			—			117,448
Other assets ⁽²⁾	8,940			369			8,571
Note receivable from related party**	66,089			—			66,089
Equity method investment	30,694			—			30,694
Total assets	$	894,344		$	19,672		$	874,672

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	14,300		$	—		$	14,300
Accrued expenses	53,794			(14,756		)	68,550
Deferred revenues, current ⁽³⁾	54,046			2,281			51,765
Short-term debt	228,764			—			228,764
Total current liabilities	350,904			(12,475		)	363,379
Lease financing obligation	10,006			—			10,006
Deferred tax liabilities	12,109			—			12,109
Deferred revenues, non-current ⁽³⁾	29,815			11,200			18,615
Other liabilities	11,329			—			11,329
Redeemable noncontrolling interest	12,500			—			12,500
Commitments and contingencies (Note 12)
Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 195 shares issued and outstanding at September 30, 2018	176,160			—			176,160
Stockholders’ equity:
Common stock, $0.0001 par value; 100,000 shares authorized, 49,817 and 52,024 shares issued; 42,655 and 46,965 outstanding at September 30, 2018 and December 31, 2017, respectively	5			—			5
Treasury stock, at cost (7,162 and 5,059 shares at September 30, 2018 and December 31, 2017, respectively)	(82,087		)	—			(82,087		)
Additional paid-in capital	561,144			—			561,144
Accumulated other comprehensive loss ⁽⁴⁾	(30,557		)	76			(30,633		)
Accumulated deficit	(156,984		)	20,871			(177,855		)
Total stockholders’ equity	291,521			20,947			270,574
Total liabilities and stockholders’ equity	$	894,344		$	19,672		$	874,672

________________________________


**	See Note 5 -Investments in Affiliates and Related Transactions for related party transactions reflected in this account.



	Three Months Ended September 30, 2018									Nine Months Ended September 30, 2018
	As Reported			Impacts of the New Revenue Standard			Adjusted amounts under prior GAAP			As Reported			Impacts of the New Revenue Standard			Adjusted amounts under prior GAAP
Net revenues ⁽³⁾	$	83,286		$	11,605		$	71,681		$	243,737		$	31,871		$	211,866
Costs and expenses:
Cost of revenues* ⁽⁵⁾	43,714			249			43,465			127,788			613			127,175
Research and development	18,684			—			18,684			59,789			—			59,789
Selling, general and administrative ⁽²⁾	27,320			51			27,269			99,368			152			99,216
Restructuring charges	4,539			—			4,539			8,425			—			8,425
Depreciation and amortization	23,658			—			23,658			70,330			—			70,330
Total costs and expenses	117,915			300			117,615			365,700			765			364,935
Loss from continuing operations	(34,629		)	11,305			(45,934		)	(121,963		)	31,106			(153,069		)
Interest income	203			—			203			7,518			—			7,518
Interest expense	(1,370		)	(33		)	(1,337		)	(3,935		)	(105		)	(3,830		)
Other expense, net	(13,439		)	—			(13,439		)	(9,180		)	—			(9,180		)
Equity method investment income	283			—			283			71			—			71
Loss from continuing operations, before taxes	(48,952		)	11,272			(60,224		)	(127,489		)	31,001			(158,490		)
Benefit for income taxes	2,308			—			2,308			1,604			—			1,604
Net loss from continuing operations	(46,644		)	11,272			(57,916		)	(125,885		)	31,001			(156,886		)
Net loss	(46,644		)	11,272			(57,916		)	(125,885		)	31,001			(156,886		)
Net (income) loss attributable to redeemable noncontrolling interests	(422		)	—			(422		)	2,122			—			2,122
Preferred stock dividend	(7,463		)	—			(7,463		)	(18,076		)	—			(18,076		)
Net loss attributable to Synchronoss	$	(54,529	)	$	11,272		$	(65,801	)	$	(141,839	)	$	31,001		$	(172,840	)

Basic:
Continuing operations	$	(1.38	)	$	0.28		$	(1.66	)	$	(3.51	)	$	0.77		$	(4.28	)
Diluted:
Continuing operations	$	(1.38	)	$	0.28		$	(1.66	)	$	(3.51	)	$	0.77		$	(4.28	)
Weighted-average common shares outstanding:
Basic	39,612						39,612			40,405						40,405
Diluted	39,612						39,612			40,405						40,405

________________________________


*	Cost of revenues excludes depreciation and amortization which are shown separately.


⁽¹⁾	Reflects the impact of changes to the contract term as defined by the new revenue recognition standard.


⁽²⁾	Reflects capitalization of costs to obtain a contract.


⁽³⁾	Reflects the impact of changes in the delayed pattern of recognition on the Company’s professional services, timing of revenue recognition and allocation of purchase price on software license contracts and legally enforceable rights and obligations prior to when persuasive evidence of an arrangement exists.


⁽⁴⁾	Reflects the impact of foreign currency translation related to the above impacts.


⁽⁵⁾	Reflects the impact of amortization of third party costs over the term of the contract.

The table below shows Topic 606 Retained earnings reconciliation:



Cumulative catch up Topic 606 adjustment as of January 1, 2018	$	(10,130	)
Net loss from continued operations	31,001
Retained Earnings at September 30, 2018	$	20,871

Acquisitions and Divestitures	9 Months Ended
Acquisitions and Divestitures	Sep. 30, 2018
Business Combinations [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures Acquisition-Related Costs Total acquisition-related costs recognized during the nine months ended September 30, 2018 and 2017 including transaction costs such as legal, accounting, valuation and other professional services, were $1.9 million and $13.4 million, respectively, and are included in selling, general and administrative expense in the Condensed Consolidated Statements of Operations. Acquisition of honeybee In May 2018, the Company completed the acquisition of the honeybee software business (“honeybee”), a provider of digital solutions targeted at optimizing the customer experience from Dixons Carphone plc which offers a digital transformation platform that makes it easier for companies to design and launch omni-channel customer journeys. Consideration paid by the Company consisted of approximately $9.7 million in cash at the time of closing and deferred consideration of $8.7 million to be paid over the next three years. As of September 30, 2018, the preliminary opening balance sheet reflected intangible assets and net working capital in the amount of $8.0 million and $10.4 million respectively. The Company is currently evaluating the impact of any changes in net working capital balances. Customers of the honeybee platform, such as mobile operators and other communication service providers, can rapidly create and adapt digital sales processes for contact centers, retail stores, and online channels. This helps reduce complexity for the end-user as well as internal employees, while delivering a single customer experience at all touch-points and improved business outcomes such as reduced cost and increased revenue. The acquisition did not have a material impact on the Company’s Condensed Consolidated Statements of Operations. Divestitures 2018 Transactions SNCR, LLC On November 16, 2015, the Company formed a venture with Goldman Sachs (“Goldman”), referred to as SNCR, LLC in order to develop and deploy the Synchronoss Secure Mobility Suite, which would include integration of Synchronoss Workspace platform with Goldman's internally developed mobile security intellectual property to help provide a safe, secure mobile device environment that also effectively supports bring your own device (“BYOD”). During the fourth quarter of 2017, the Company entered into a termination agreement with Goldman to terminate the venture, and provide a perpetual, irrevocable license of the venture’s intellectual property for use in Goldman’s back-office. As part of the agreement, the Company was relieved of any future obligations to support Goldman’s use of the software. The venture formally ended in the first quarter of 2018 resulting in the elimination of the Company’s associated noncontrolling interest balance and an increase to additional paid in capital balance of $12.8 million on the Company’s Condensed Consolidated Balance Sheets. 2017 Transactions Intralinks On January 19, 2017, the Company purchased all outstanding shares of Intralinks Holdings, Inc. (“Intralinks”) for approximately $815.0 million, net of cash acquired. In connection with the acquisition, the Company entered into a $900.0 million senior secured term loan (the “2017 Term Facility”). Intralinks is a global technology provider of SaaS solutions for secure enterprise content collaboration within and among organizations. Intralinks’ cloud-based solutions enable organizations to securely manage, control, track, search, exchange and collaborate on sensitive information inside and outside the firewall. The total purchase price consideration consisted of the repayment of existing Intralinks indebtedness, and non-cash consideration for services rendered on unvested Intralinks equity awards that were converted into the Company equity awards on the acquisition date. The acquisition was primarily funded from the proceeds of the $900.0 million credit agreement. On June 23, 2017, the Company received a non-binding indication of interest from Siris to acquire the Company. In light of the indication of interest, the Board of Directors decided to explore a broad range of strategic alternatives that would have the potential to unlock shareholder value. In October 2017, the Company concluded its review of strategic alternatives and determined that the best approach for the Company to achieve the goal of maximizing shareholder value was to focus on its core TMT business, divest non-core assets and improve its balance sheet strength, cash position and potential profitability. Under the terms of certain definitive agreements, investment funds affiliated with Siris acquired all of the stock of the Company’s wholly-owned subsidiary, Intralinks, for consideration of cash and an investment in convertible preferred equity of the Company. On October 17, 2017, the Company announced its entry into definitive agreements for the sale of Intralinks, and the right to sell a newly created series of preferred stock of Synchronoss to affiliates of Siris. Subject to the terms and conditions set forth in a share purchase agreement, dated as of October 17, 2017 (the “Share Purchase Agreement”), among Synchronoss, Intralinks and Impala Private Holdings II, LLC, an affiliate of Siris (“Impala”), Impala agreed to acquire from the Company, the issued and outstanding shares of common stock of Intralinks for approximately $977.3 million in cash plus a potential contingent payment of up to $25.0 million, subject to an adjustment for cash, debt and working capital (the “Intralinks Transaction”). The total amount of funds used to complete the Intralinks Transaction and related transactions and pay related fees and expenses was approximately $1.0 billion, which was funded through a combination of equity and debt financing obtained by Impala. Subsequently, on November 14, 2017, the Company sold Intralinks to Impala, for approximately $991.0 million in cash, subject to post-closing adjustments for changes in cash, debt and working capital. As a result of the sale, the Company prepaid the remaining balance on the 2017 Term Facility. If, in the future, Impala receives net cash proceeds in excess of $440.0 million from any sale of equity or assets of Intralinks, or a dividend or distribution in respect of the shares of Intralinks, then Impala is required to pay the Company up to an additional $25.0 million in cash or publicly traded securities. Immediately following the consummation of the Intralinks Transaction, the Company paid to Impala $5.0 million as partial reimbursement of the out-of-pocket fees and expenses incurred by Impala, Siris and their respective affiliates in connection with the execution of the Share Purchase Agreement and the Intralinks Transaction. Amounts reimbursed were recorded as a reduction in the gain on sale. The operations of Intralinks were presented as discontinued operations in 2017. SpeechCycle On February 1, 2017, the Company completed a divestiture of its SpeechCycle business, to an unrelated third party, for consideration of $13.5 million. As part of the divestiture, the Company entered into a one-year transition services agreement with the acquirer to support various indirect activities such as customer software support, technical support services and maintenance and support services. These services were terminated during the first quarter of 2018. The Company recorded a pre-tax gain of $4.9 million as a result of the divestiture which is included in other income (expense), net in the Condensed Consolidated Statement of Operations.

Fair Value Measurements of Assets and Liabilities

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements of Assets and Liabilities

In accordance with accounting principles generally accepted in the United States, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy prioritizes the inputs used to measure fair value as follows:


•	Level 1 - Observable inputs - quoted prices in active markets for identical assets and liabilities;


•	Level 2 - Observable inputs other than the quoted prices in active markets for identical assets and liabilities includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, and amounts derived from valuation models where all significant inputs are observable in active markets; and


•	Level 3 - Unobservable inputs - includes amounts derived from valuation models where one or more significant inputs are unobservable and require the Company to develop relevant assumptions.

The following is a summary of assets, liabilities and redeemable noncontrolling interests and their related classifications under the fair value hierarchy:



	September 30, 2018
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash, cash equivalents and restricted cash ⁽¹⁾	$	226,815	$	226,815	$	—	$	—
Marketable securities-short term ⁽²⁾	6,989		—		6,989		—
Marketable securities-long term ⁽²⁾	8,716		—		8,716		—
Total assets	$	242,520	$	226,815	$	15,705	$	—
Temporary equity
Redeemable noncontrolling interests ⁽³⁾	$	12,500	$	—	$	—	$	12,500
Total temporary equity	$	12,500	$	—	$	—	$	12,500



	December 31, 2017
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash, cash equivalents and restricted cash ⁽¹⁾	$	246,125	$	246,125	$	—	$	—
Marketable securities-short term ⁽²⁾	3,111		—		3,111		—
Total assets	$	249,236	$	246,125	$	3,111	$	—
Liabilities
Contingent interest derivative ⁽⁴⁾	$	193	$	—	$	—	$	193
Mandatorily redeemable financial instrument ⁽⁵⁾	$	37,959	$	—	$	—	$	37,959
Total liabilities	$	38,152	$	—	$	—	$	38,152
Temporary Equity
Redeemable noncontrolling interests ⁽³⁾	$	25,280	$	—	$	—	$	25,280
Total temporary equity	$	25,280	$	—	$	—	$	25,280

________________________________


⁽¹⁾	Cash equivalents primarily included money market funds.


⁽²⁾	Marketable securities are comprised of municipal bonds and certificates of deposit.


⁽³⁾	Put arrangements held by the noncontrolling interests in certain of the Company’s joint ventures.


⁽⁴⁾	Contingent interest derivative related to convertible debt is included in accrued expenses, for further details see Note 6 - Debt.

⁽⁵⁾

Mandatorily redeemable financial instruments are comprised of the Company’s contractual obligation to deliver a set number of preferred shares at a time in less than twelve months and the option for the Company to receive a set number of common shares. In 2018, this was exchanged as partial consideration in connection with issuance of the Company’s Series A Convertible Participating Perpetual Preferred Stock.

Available-for-Sale Securities

The Company utilizes the market approach to measure fair value for its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. The Company’s marketable securities investments classified as Level 2 primarily utilize broker quotes in a non-active market for valuation of these securities. No transfers of assets between Level 1, Level 2 and Level 3 of the fair value measurement hierarchy occurred during the nine months ended September 30, 2018.

Unrealized gains and losses are reported as a component of accumulated other comprehensive income in stockholders’ equity. There were no sales of marketable securities during the nine months ended September 30, 2018 and 2017. The cost of securities sold is based on the specific identification method. The Company evaluates investments with unrealized losses to determine if the losses are other than temporary. The Company has determined that the gross unrealized losses at September 30, 2018 and 2017 are temporary. In making this determination, the Company considered the financial condition, credit ratings and near-term prospects of the issuers, the underlying collateral of the investments, and the magnitude of the losses as compared to the cost and the length of time the investments have been in an unrealized loss position. Additionally, while the Company classifies the securities as available for sale, the Company does not currently intend to sell such investments and it is more likely than not to recover the carrying value prior to being required to sell such investments.

At September 30, 2018 and December 31, 2017, the estimated fair value of investments classified as available-for-sale, were as follows:



	September 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities:
Certificates of deposit	$	3,776	$	—	$	(15	)	$	3,761
Corporate bonds	402		—		(3		)	399
Municipal bonds	11,598		1		(54		)	11,545
Total marketable securities	$	15,776	$	1	$	(72	)	$	15,705

As of September 30, 2018, there were no accumulated unrealized losses related to investments that have been in a continuous unrealized loss position for 12 months or longer. The aggregate related fair value of investment with unrealized losses was less than $14.8 million.



	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities:
Certificates of deposit	$	250	$	—	$	—		$	250
Municipal bonds	2,867		—		(6		)	2,861
Total marketable securities	$	3,117	$	—	$	(6	)	$	3,111

As of December 31, 2017, the aggregate related fair value of investment with unrealized losses was approximately $2.9 million.

The contractual maturities of marketable debt securities were as follows:



	September 30, 2018
	Amortized Cost		Fair Value
Due within one year	$	7,006	$	6,989
Due after 1 year through 5 years	8,718		8,664
Due after 5 years through 10 years	52		52
Due after 10 years	—		—
Total available-for-sale debt securities	$	15,776	$	15,705

Redeemable Noncontrolling Interests

The redeemable noncontrolling interests recorded at fair value are put arrangements held by the noncontrolling interests in certain of the Company’s joint ventures. The Company recognizes changes in the redemption value immediately as they occur and adjusts the carrying value of the noncontrolling interest to the greater of the estimated redemption value, which approximates fair value, at the end of each reporting period or the initial carrying amount.

The fair value of the redeemable noncontrolling interests was estimated by applying an income approach using a discounted cash flow analysis. This fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 measurement. Significant changes in the underlying assumptions used to value the redeemable noncontrolling interests could significantly increase or decrease the fair value estimates recorded in the Condensed Consolidated Balance Sheets.

The changes in fair value of the Company’s Level 3 redeemable noncontrolling interests during the nine months ended September 30, 2018 were as follows:



Balance at December 31, 2017	$	25,280
Fair value adjustment	(10,658		)
Net loss attributable to redeemable noncontrolling interests	(2,122		)
Balance at September 30, 2018	$	12,500

Fair Value of PIK Note

The fair value of the PIK note was estimated by applying an income approach using a discounted cash flow analysis to derive the fair value of the STIH’s interest in STIN, the collateral supporting the PIK Note. Additionally, the Company considered synthetic credit ratings of comparable notes in the market. This fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 measurement. Significant changes in the underlying assumptions used to value the PIK note, for impairment, such as discount rate, credit rating, and growth rates could significantly increase or decrease the fair value estimates recorded in the Condensed Consolidated Balance Sheets. For further details see Note 5 - Investments in Affiliates and Related Transactions.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Investments in Affiliates and Related Transactions

9 Months Ended

Sep. 30, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investments in Affiliates and Related Transactions

Sequential Technology International, LLC

The Company includes investments, which are accounted for using the equity method, under the caption equity method investment on the Company’s Condensed Consolidated Balance Sheets. As of September 30, 2018, the Company’s investments in equity interests was comprised of $30.7 million related to a 30% equity interest in Sequential Technology International, LLC (“STIN”).

Sequential Technology International Holdings LLC (“STIH”), which holds a 70% equity interest in STIN, also holds a senior note issued by a Third Party (“Third-Party Note” or “Seller Note”). The Third-Party Note is secured against STIH’s equity interest in STIN and is senior to the Company’s equity interest in STIN. Under the arrangement, cash dividends due to the Company from STIN, other than required cash distributions made for tax purposes, are deferred until the Third-Party Note is paid in full. As of September 30, 2018, all the amounts under the Third-Party Note are paid in full. Under the terms of a paid-in-kind purchase money note (the “PIK Note”) issued to the Company by STIH, deferred distributions are added to the amounts outstanding under the PIK Note.

In connection with the divestiture of the exception handling business of the Company, Synchronoss entered into a three-year Cloud Telephony and Support services agreement to grant STIN access to certain Synchronoss software and private branch exchange systems to facilitate exception handling operations required to support STIN customers.

For the three months ended September 30, 2018 and 2017, the Company recognized $6.4 million and $8.3 million, respectively, in revenue related to Cloud Telephony and Support services, and $0.9 million and $1.0 million, respectively, in revenue related to all other services. For the nine months ended September 30, 2018 and 2017, the Company recognized $12.8 million and $12.5 million, respectively in revenue related to Cloud Telephony and Support services, and $8.2 million and $1.9 million, respectively, in revenue related to all other services.

STIN - Selected financial data

The following table displays certain key financial data pertaining to the operations of STIN for the three and nine months ended September 30, 2018:



	Three Months Ended		Nine Months Ended
Revenues	$	33,119	$	94,758
Expenses	32,177		94,523
Net(loss) income	$	942	$	235

PIK Note

The following is a summary of the PIK Note related balances:



	Seller Note		Impairment			Unamortized Discount			Loan Accrued Interest		Distribution Note		Distribution interest		Total
December 31, 2017	$	83,000	$	(14,562	)	$	(12,163	)	$	11,096	$	6,187	$	426	$	73,984
Activity	—		(18,225		)	438			6,103		3,293		496		(7,895		)
September 30, 2018	$	83,000	$	(32,787	)	$	(11,725	)	$	17,199	$	9,480	$	922	$	66,089

During the nine months ended September 30, 2018, STIN distributed approximately $3.3 million to the Company, which was recognized as reduction in the Company’s equity investment in STIN and a corresponding adjustment to increase the PIK Note. Amounts were used by STIH to facilitate accelerated payment on the Third-Party Note held by STIH.

Amendment to PIK Note

During the three months ended September 30, 2018, the Company entered into an amendment with STIH to modify the terms, of the PIK Note (“PIK Amendment”). The PIK Amendment modified the terms of the arrangement, lowering the interest rate from LIBOR plus 1100 basis points to a rate equal to the sum of LIBOR plus 300 basis points per annum. Additionally, the PIK Amendment provided relief on required payments, to allow STIH to continue its operations.

Concurrent with the modification described above, STIH and the Company agreed to modify the liquidation preferences set forth in the PIK Note, which would allow for cash distributions, senior to the PIK Note, as amended by the PIK Amendment, in the amount of $24.0 million, which would be distributed evenly in the event of sale.

The Company determined that the above modifications qualified as a troubled debt restructuring, due primarily to the following factors (i) STIN continues to experience declines in its business, deteriorating the overall EBITDA available to provide adequate payment for debt, (ii) the terms of the debt modification, and in combination with the preference payments agreed to in the operating agreement provided a return-of-capital claim senior to the debt, and waived the Company’s right to include such future distribution as a qualified distribution subject to PIK under the distribution note and (iii) the terms of the arrangement were significantly below market for which no consideration was granted to the Company.

The troubled debt restructuring resulted in an impairment on the PIK Note, as amended by the PIK Amendment, in the amount of $18.2 million, as reflected in the table above. Subsequent to modification and based on the concessions made under the troubled debt restructuring, the Company determined that collectability beyond the impaired carrying value is no longer probable and will account the PIK Note, as amended by the PIK Amendment, on a modified cost recovery basis, recognizing into income, only those amounts collected above the impaired carrying value of $66.1 million.

STIN affiliate balances

The STIN affiliate balances and their classification in the Condensed Consolidated Balance Sheet as of September 30, 2018, were as follows:



	September 30, 2018		December 31, 2017
Restricted cash ^(A)	$	—	$	118
Accounts receivable ^(B)	22,274		18,033
Total assets	$	22,274	$	18,151

Accrued expenses ^(A)	—		118
Total liabilities	$	—	$	118

________________________________


^(A)	The Company collected zero and $0.1 million from STIN customers, on behalf of STIN, which remained outstanding as of September 30, 2018 and December 31, 2017, respectively. This amount has been classified in short-term restricted cash and in accrued expenses on the Condensed Consolidated Balance Sheets.


^(B)	These amounts principally included revenues generated from the Cloud and Telephony Support Services agreement and pass-through of vendor expenses incurred during the transition and assignment of vendor contracts.

Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Debt

Total debt consists of the following:



	September 30, 2018			December 31, 2017
Convertible Senior Notes	$	230,000		$	230,000
Unamortized debt issuance cost ⁽¹⁾	(1,236		)	(2,296		)
Total debt, carrying value	$	228,764		$	227,704
Total short-term debt, carrying value	$	228,764		$	—
Total long-term debt, carrying value	$	—		$	227,704

________________________________


⁽¹⁾	Unamortized debt issuance cost is related to Convertible Senior Notes.

Convertible Senior Notes

On August 12, 2014, the Company issued $230.0 million aggregate principal amount of its 0.75% Convertible Senior Notes due in 2019 (the “2019 Notes”). The 2019 Notes mature on August 15, 2019, and bear interest at a rate of 0.75% per annum payable semi-annually in arrears on February 15 and August 15 of each year. The Company accounted for the $230.0 million face value of the debt as a liability and capitalized approximately $7.1 million of financing fees, related to the issuance which are presented net of the face value of the 2019 Notes on the Condensed Consolidated Balance Sheets.

The 2019 Notes are senior, unsecured obligations of the Company, and are convertible into shares of its common stock based on a conversion rate of 18.8072 shares per $1,000 principal amount of 2019 Notes which is equivalent to an initial conversion price of approximately $53.17 per share. The Company will satisfy any conversion of the 2019 Notes with shares of the Company’s common stock. The 2019 Notes are convertible at the note holders’ option prior to their maturity and if specified corporate transactions occur. The issue price of the 2019 Notes was equal to their face amount.

Holders of the 2019 Notes who convert their notes in connection with a qualifying fundamental change, as defined in the related indenture, may be entitled to a make-whole premium in the form of an increase in the conversion rate. Additionally, following the occurrence of a fundamental change, holders may require that the Company repurchase some or all of the 2019 Notes for cash at a repurchase price equal to 100% of the principal amount of the notes being repurchased, plus accrued and unpaid interest, if any. As of September 30, 2018, none of these conditions existed with respect to the 2019 Notes.

Included in the definition of a fundamental change is whether the Company’s common stock ceases to be listed or quoted on Nasdaq. In May 2018, trading of the Company’s common stock was suspended on Nasdaq, however, it was not delisted. On September 26, 2018, the Company received notice, that the Nasdaq Listing Qualifications Staff (the “Staff”) approved the listing of its common stock on Nasdaq. The result of this approval caused the suspension of trading in Company’s common stock on The Nasdaq Stock Market to be lifted. For further details see Note 14 - Subsequent Events Review.

The 2019 Notes are the Company’s direct senior unsecured obligations and rank equal in right of payment to all of the Company’s existing and future unsecured and unsubordinated indebtedness.

During the three and nine months ended September 30, 2018, interest expense for the Company’s 2019 Notes related to the contractual interest coupon was $0.4 million and $1.3 million, respectively.

At September 30, 2018, the carrying amount of the liability was $228.8 million and the outstanding principal of the 2019 Notes was $230.0 million, with an effective interest rate of approximately 1.37%. The fair value of the 2019 Notes was $222.9 million at September 30, 2018. The fair value of the liability of the 2019 Notes was determined using a discounted cash flow model based on current market interest rates available to the Company. These inputs are corroborated by observable market data for similar liabilities and therefore classified within Level 2 of the fair-value hierarchy.

The Company is required to meet all SEC filing requirements and deadlines to be compliant with the 2019 Notes. In the event that the Company does not meet the filing requirements, the Company will be in default under the 2019 Notes unless it elects to pay the noteholders additional interest of 0.25% up to 180 days from the date of the notice of default and 0.50% thereafter up to 360 days. The Company may agree to pay additional interest to the holders by notifying holders and the trustee within 90 days from the notice of default. If the Company decides to pay the additional interest but has not remedied its failure to meet all SEC filing requirements within 360 days from the notice of default, it will be in default. If the Company fails to elect to pay the additional interest, it will be in default if it does not remedy its failure to meet all SEC filing requirements within the 90 days from the notice of default.

The Company received a notice of default from holders of more than 25% of the outstanding principal amount of the 2019 Notes on October 13, 2017. In accordance with the terms of the 2019 Notes, the Company elected to begin paying additional interest starting January 11, 2018 (the 90^th day following the Company’s receipt of the notice of default). As a result of the Company regaining compliance with its SEC filing requirements, the Company was no longer required to pay the additional interest as of July 9, 2018. The Company was required to record a derivative related to this contingent interest as a liability and expense in its financial statements due to the late filings of the Company’s quarterly reports on Form 10-Q in 2017. At September 30, 2018, the recorded contingent interest derivative liability within accrued expenses was zero as a result of Company regaining compliance with its SEC filing requirements.

2019 Notes Notice

On June 13, 2018, The Bank of New York Mellon, in its capacity as trustee (the “Trustee”) under the indenture dated as of August 12, 2014 (the “Indenture”) governing for the 2019 Notes, filed a verified complaint with the Court of Chancery of the State of Delaware, captioned The Bank of New York Mellon, as Indenture Trustee v. Synchronoss Technologies, Inc. (the “BNY Action”). The BNY Action complaint alleges that a “Fundamental Change” has occurred under the Indenture as a result of the Company’s Common Stock ceasing to be listed or quoted on Nasdaq and that an event of default under the Indenture has occurred as a result of the Company’s failure to provide a notice of such Fundamental Change which, if true, following notice from holders of more than 25% of the outstanding principal under the Notes would trigger the acceleration of the principal and interest outstanding under the 2019 Notes, which otherwise mature on August 15, 2019. On November 2018, the parties filed a stipulation of dismissal of the BNY Action. For further details, see Note 14 - Subsequent Events Review.

On November 2, 2018, the Company retired $116.0 million of 2019 Notes as a part of settlement agreement entered into on November 1, 2018, among the Company, Indaba Capital Fund, L.P. (“Indaba”) and Westwood Management Corp. (“Westwood”) related to the BNY Action. For further details see Note 12 - Commitments and Contingencies.

Interest expense

The following table summarizes the Company’s interest expense:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Amended Credit Facility
Amortization of debt issuance costs	$	—	$	—	$	—	$	748
Commitment fee	—		—		—		25
Interest on borrowings	—		—		—		24
2017 Term Facility
Amortization of debt issuance costs	—		1,021		—		2,376
Interest on borrowings	—		12,411		—		29,047
Contingent Interest Derivative	—		2,489		—		2,489
Amendment fees paid to third parties	—		5,716		—		5,716
Revolving Facility
Amortization of debt issuance costs	—		204		—		542
Commitment fee	—		114		—		448
Amendment fees paid to third parties	—		1,662		—		1,662
Convertible Senior Notes
Amortization of debt issuance costs	354		354		1,060		1,060
Interest on borrowings	430		431		1,292		1,294
Additional interest on default	—		—		192		288
Capital leases	241		243		724		729
Other	345		910		667		1,568
Total	$	1,370	$	25,555	$	3,935	$	48,016

Accumulated Other Comprehensive Income/ (Loss)

9 Months Ended

Sep. 30, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income/ (Loss)

The changes in accumulated other comprehensive (loss) during the nine months ended September 30, 2018, were as follows:



	Foreign Currency Translation Adjustment			Unrealized (Loss) Income on Intra-Entity Foreign Currency Transactions			Unrealized Holding Gains (Losses) on Available-for-Sale Securities			Total
Balance at Balance at December 31, 2017	$	(20,284	)	$	(3,085	)	$	(4	)	$	(23,373	)
Other comprehensive income	(6,529		)	(883		)	(52		)	(7,464		)
Tax effect	—			280			—			280
Total comprehensive income	(6,529		)	(603		)	(52		)	(7,184		)
Balance at Balance at September 30, 2018	$	(26,813	)	$	(3,688	)	$	(56	)	$	(30,557	)

Stockholders' Equity

9 Months Ended

Sep. 30, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

There were no significant changes to Company’s authorized capital stock and preferred stock during the three and nine months ended September 30, 2018.

Common Stock

Each holder of common stock is entitled to vote on all matters and is entitled to one vote for each share held. Dividends on common stock will be paid when, and if, declared by the Company’s Board of Directors. No dividends have ever been declared or paid by the Company.

Preferred Stock

There were no shares of preferred stock outstanding as of December 31, 2017. The Board of Directors is authorized to issue preferred shares and has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences of preferred stock.

In accordance with the terms of the Share Purchase Agreement dated as of October 17, 2017 (the “PIPE Purchase Agreement”), with Silver Private Holdings I, LLC, an affiliate of Siris (“Silver”), on February 15, 2018, the Company issued to Silver 185,000 shares of its newly issued Series A Convertible Participating Perpetual Preferred Stock (the “Series A Preferred Stock”), par value $0.0001 per share, with an initial liquidation preference of $1,000 per share, in exchange for $97.7 million in cash and the transfer from Silver to the Company of the 5,994,667 shares of the Company’s common stock held by Silver (the “Preferred Transaction”).

As of September 30, 2018, there were 195,181 shares of Series A Preferred Stock outstanding, including the initial issuance of 185,000 shares of Series A Preferred Stock and the issuance of 10,181 shares as preferred dividends.

In accordance with the terms of the PIPE Purchase Agreement with Silver on February 15, 2018, the Company exercised its option to complete the Preferred Transaction. In connection with the issuance of the Series A Preferred Stock, the Company (i) filed the certificate of designations to its certificate of incorporation to establish the rights, preferences, privileges, qualifications, restrictions and limitations of the Series A Preferred Stock (the “Series A Certificate”) and (ii) entered into the Investor Rights Agreement setting forth certain registration, governance and preemptive rights of Silver with respect to Synchronoss. Pursuant to the PIPE Purchase Agreement, at the closing, the Company paid to Siris $5.0 million as a reimbursement of Silver’s reasonable costs and expenses incurred in connection with the Preferred Transaction. In connection with execution of the Preferred Transaction, Silver delivered 5,994,667 shares of Synchronoss common stock, which have been recorded as Treasury shares as of September 30, 2018.

Certificate of Designation of the Series A Preferred Stock

The rights, preferences, privileges, qualifications, restrictions and limitations of the shares of Series A Preferred Stock are set forth in the Series A Certificate. Under the Series A Certificate, the holders of the Series A Preferred Stock are entitled to receive, on each share of Series A Preferred Stock on a quarterly basis, an amount equal to the dividend rate of 14.5% divided by four and multiplied by the then-applicable Liquidation Preference (as defined in the Series A Certificate) per share of Series A Preferred Stock (collectively, the “Preferred Dividends”). The Preferred Dividends are due on January 1, April 1, July 1 and October 1 of each year (each, a “Series A Dividend Payment Date”). The Company may choose to pay the Preferred Dividends in cash or in additional shares of Series A Preferred Stock. In the event the Company does not declare and pay a dividend in-kind or in cash on any Series A Dividend Payment Date, the unpaid amount of the Preferred Dividend will be added to the Liquidation Preference. In addition, the Series A Preferred Stock participates in dividends declared and paid on shares of the Company’s common stock.

Each share of Series A Preferred Stock is convertible, at the option of the holder, into the number of shares of common stock equal to the “Conversion Price” (as that term is defined in the Series A Certificate) multiplied by the then applicable “Conversion Rate” (as that term is defined in the Series A Certificate). Each share of Series A Preferred Stock is initially convertible into 55.5556 shares of common stock, representing an initial “conversion price” of approximately $18.00 per share of common stock. The Conversion Rate is subject to equitable proportionate adjustment in the event of stock splits, recapitalizations and other events set forth in the Series A Certificate.

On and after the fifth anniversary of February 15, 2018, holders of shares of Series A Preferred Stock have the right to cause the Company to redeem each share of Series A Preferred Stock for cash in an amount equal to the sum of the current liquidation preference and any accrued dividends. Each share of Series A Preferred Stock is also redeemable at the option of the holder upon the occurrence of a “Fundamental Change” (as that term is defined in the Series A Certificate) at a specified premium (“Liquidation Value”). In addition, the Company is also permitted to redeem all outstanding shares of the Series A Preferred Stock at any time (i) within the first 30 months of the date of issuance for the sum of the then-applicable Liquidation Preference, accrued but unpaid dividends and a make whole amount (known as “Redemption Value”) and (ii) following the 30-month anniversary of the date of issuance for the sum of the then-applicable Liquidation Preference and the accrued but unpaid dividends. As of September 30, 2018, the Liquidation Value and Redemption Value of the Preferred Shares was $323.5 million and $251.9 million respectively.

The holders of a majority of the Series A Preferred Stock, voting separately as a class, are entitled at each of the Company’s annual meetings of stockholders or at any special meeting called for the purpose of electing directors (or by written consent signed by the holders of a majority of the then-outstanding shares of Series A Preferred Stock in lieu of such a meeting): (i) to nominate and elect two members of the Company’s Board of Directors for so long as the Preferred Percentage (as defined in the Series A Certificate) is equal to or greater than 10%; and (ii) to nominate and elect one member of the Company’s Board of Directors for so long as the Preferred Percentage is equal to or greater than 5% but less than 10%.

For so long as the holders of shares of Series A Preferred Stock have the right to nominate at least one director, the Company is required to obtain the prior approval of Silver prior to taking certain actions, including: (i) certain dividends, repayments and redemptions; (ii) any amendment to the Company’s certificate of incorporation that adversely effects the rights, preferences, privileges or voting powers of the Series A Preferred Stock; (iii) issuances of stock ranking senior or equivalent to shares of Series A Preferred Stock (including additional shares of Series A Preferred Stock) in the priority of payment of dividends or in the distribution of assets upon any liquidation, dissolution or winding up of the Company; (iv) changes in the size of the Company’s Board of Directors; (v) any amendment, alteration, modification or repeal of the charter of the Company’s Nominating and Corporate Governance Committee of the Board of Directors and related documents; and (vi) any change in the Company’s principal business or the entry into any line of business outside of the Company’s existing lines of businesses. In addition, in the event that the Company is in EBITDA Non-Compliance (as defined in the Series A Certificate) or the undertaking of certain actions would result in the Company exceeding a specified pro forma leverage ratio, then the prior approval of Silver would be required to incur indebtedness (or alter any debt document) in excess of $10.0 million, enter or consummate any transaction where the fair market value exceeds $5.0 million individually or $10.0 million in the aggregate in a fiscal year or authorize or commit to capital expenditures in excess of $25.0 million in a fiscal year.

Each holder of Series A Preferred Stock has one vote per share on any matter on which holders of Series A Preferred Stock are entitled to vote separately as a class, whether at a meeting or by written consent. The holders of Series A Preferred Stock are permitted to take any action or consent to any action with respect to such rights without a meeting by delivering a consent in writing or electronic transmission of the holders of the Series A Preferred Stock entitled to cast not less than the minimum number of votes that would be necessary to authorize, take or consent to such action at a meeting of stockholders. In addition to any vote (or action taken by written consent) of the holders of the shares of Series A Preferred Stock as a separate class provided for in the Series A Certificate or by the General Corporation Law of the State of Delaware, the holders of shares of the Series A Preferred Stock are entitled to vote with the holders of shares of common stock (and any other class or series that may similarly be entitled to vote on an as-converted basis with the holders of common stock) on all matters submitted to a vote or to the consent of the stockholders of the Company (including the election of directors) as one class.

Under the Series A Certificate, if Silver and certain of its affiliates have elected to effect a conversion of some or all of their shares of Series A Preferred Stock and if the sum, without duplication, of (i) the aggregate number of shares of the Company’s common stock issued to such holders upon such conversion and any shares of the Company’s common stock previously issued to such holders upon conversion of Series A Preferred Stock and then held by such holders, plus (ii) the number of shares of the Company’s common stock underlying shares of Series A Preferred Stock that would be held at such time by such holders (after giving effect to such conversion), would exceed the 19.9% of the issued and outstanding shares of the Company’s voting stock on an as converted basis (the “Conversion Cap”), then such holders would only be entitled to convert such number of shares as would result in the sum of clauses (i) and (ii) (after giving effect to such conversion) being equal to the Conversion Cap (after giving effect to any such limitation on conversion). Any shares of Series A Preferred Stock which a holder has elected to convert but which, by reason of the previous sentence, are not so converted, will be treated as if the holder had not made such election to convert and such shares of Series A Preferred Stock will remain outstanding. Also, under the Series A Certificate, if the sum, without duplication, of (i) the aggregate voting power of the shares previously issued to Silver and certain of its affiliates held by such holders at the record date, plus (ii) the aggregate voting power of the shares of Series A Preferred Stock held by such holders as of such record date, would exceed 19.99% of the total voting power of the Company’s outstanding voting stock at such record date, then, with respect to such shares, Silver and certain of its affiliates are only entitled to cast a number of votes equal to 19.99% of such total voting power. The limitation on conversion and voting ceases to apply upon receipt of the requisite approval of holders of the Company’s common stock under the applicable listing standards.

Form of Investor Rights Agreement

Concurrently with the closing of the Preferred Transaction, Synchronoss and Silver entered into an Investor Rights Agreement. Under the terms of the Investor Rights Agreement, Silver and Synchronoss have agreed that, effective as of the closing of the Preferred Transaction, the Board of Directors of Synchronoss will consist of ten members. From and after the closing of the Preferred Transaction, so long as the holders of Series A Preferred Stock have the right to nominate a member to the Board of Directors pursuant to the Series A Certificate, the Board of Directors of Synchronoss will consist of (i) two directors nominated and elected by the holders of shares of Series A Preferred Stock; (ii) four directors who meet the independence criteria set forth in the applicable listing standards (each of whom will be initially agreed upon by Synchronoss and Silver); and (iii) four other directors, two of whom shall satisfy the independence criteria of the applicable listing standards and, as of the closing of the Preferred Transaction, one of whom shall be the individual then serving as chief executive officer of Synchronoss and one of whom shall be the current chairman of the Board of Directors of Synchronoss as of the date of execution of the Investors Rights Agreement. Following the closing of the Preferred Transaction, so long as the holders of Series A Preferred Stock have the right to nominate at least one director to the Board of Directors of Synchronoss pursuant to the Series A Certificate, Silver will have the right to designate two members of the Nominating and Corporate Governance Committee of the Board of Directors.

Pursuant to the terms of the Investor Rights Agreement, neither Silver nor its affiliates may transfer any shares of Series A Preferred Stock subject to certain exceptions (including transfers to affiliates that agree to be bound by the terms of the Investor Rights Agreement).

For so long as Silver has the right to appoint a director to the Board of Directors of Synchronoss, without the prior approval by a majority of directors voting who are not appointed by the holders of shares of Series A Preferred Stock, neither Silver nor its affiliates will directly or indirectly purchase or acquire any debt or equity securities of Synchronoss (including equity-linked derivative securities) if such purchase or acquisition would result in Silver’s Standstill Percentage (as defined in the Investor Rights Agreement) being in excess of 30%. However, the foregoing standstill restrictions would not prohibit the purchase of shares pursuant to the PIPE Purchase Agreement or the receipt of shares of Series A Preferred Stock issued as Preferred Dividends pursuant to the Series A Certificate, shares of Common Stock received upon conversion of shares of Series A Preferred Stock or receipt of any shares of Series A Preferred Stock, Common Stock or other securities of the Company otherwise paid as dividends or as an increase of the Liquidation Preference (as defined in the Series A Certificate) or distributions thereon. Silver will also have preemptive rights with respect to issuances of securities of Synchronoss to maintain its ownership percentage.

Under the terms of the Investor Rights Agreement, Silver will be entitled to (i) three demand registrations, with no more than two demand registrations in any single calendar year and provided that each demand registration must include at least 10% of the shares of Common Stock held by Silver, including shares of Common Stock issuable upon conversion of shares of Series A Preferred Stock and (ii) unlimited piggyback registration rights with respect to primary issuances and all other issuances.

Registration Rights

There were no significant changes to Company’s registration rights during the three and nine months ended September 30, 2018.

Stock Plans

There were no significant changes to Company’s Stock Plans during the three and nine months ended September 30, 2018. As of September 30, 2018, there were zero shares available for the grant or award under the Company’s 2015 Plan and 0.6 million shares available for the grant or award under the Company’s new hire equity incentive plan.

During the nine-months ended September 30, 2018, the Company granted awards to purchase an aggregate of 0.6 million shares under the Company’s 2015 Plan, none of which awards are vested as of September 30, 2018. If there is an insufficient number of shares available under the 2015 Plan for issuance upon vesting and subsequent exercise of such awards, the Company intends to settle such awards for cash. These awards as well the Company’s performance awards granted to executives under the 2018 grant have been accounted for as liability awards, due to the Company’s intent and the ability to settle such awards in cash upon vesting and has reflected such awards in accrued expenses. As of September 30, 2018, the liability for such awards is approximately $0.7 million.

Stock-Based Compensation

The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by operating expense categories, as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Cost of revenues	$	1,035	$	1,118	$	3,447	$	3,326
Research and development	1,340		1,201		4,682		4,181
Selling, general and administrative	4,841		1,359		13,911		6,920
Total stock-based compensation expense	$	7,216	$	3,678	$	22,040	$	14,427

The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by award types, as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Stock options	$	1,940	$	1,534	$	5,680	$	4,522
Restricted stock awards	5,276		2,092		16,360		9,523
Employee Stock Purchase Plan	—		52		—		382
Total stock-based compensation before taxes	$	7,216	$	3,678	$	22,040	$	14,427
Tax benefit	$	1,402	$	973	$	4,356	$	2,686

The total stock-based compensation cost related to unvested equity awards as of September 30, 2018 was approximately $48.1 million. The expense is expected to be recognized over a weighted-average period of approximately 2.42 years.

Replacement Awards

On January 19, 2017, certain equity awards granted under the Intralinks Holdings, Inc. 2010 Equity Incentive Plan and the Intralinks Holdings, Inc. 2007 Stock Option and Grant Plan (together, the “Intralinks Plans”) were assumed by the Company’s 2015 Equity Incentive Plan (the “2015 Plan”). The assumed awards are subject to the vesting and service conditions of the 2015 Plan. Subsequently, these were accelerated as part of the Intralinks Transaction.

Among the equity awards assumed were restricted stock units subject to market-based performance targets in order for them to vest. Vesting is subject to continued service requirements through the vesting date. The grant date fair value for such unvested restricted stock units was estimated using a Monte Carlo simulation that incorporates option-pricing inputs covering the period from the grant date through the end of the performance period. Stock-based compensation expense for such unvested restricted stock units is recognized on a straight-line basis over the vesting period, regardless of whether the market condition is satisfied. All of these awards were canceled during 2017 pursuant to termination of related employees.

Stock Options

There were no significant changes to Company’s Stock Option Plans during the three and nine months ended September 30, 2018.

The Company uses the Black-Scholes option pricing model for determining the estimated fair value for stock options. The weighted-average assumptions used in the Black-Scholes option pricing model are as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Expected stock price volatility	66.0		%	0.0		%	65.2		%	49.2		%
Risk-free interest rate	2.7		%	0.0		%	2.6		%	1.7		%
Expected life of options (in years)	4.29			0.00			4.11			4.03
Expected dividend yield	0.0		%	0.0		%	0.0		%	0.0		%
Weighted-average fair value (grant date) of the options	$	3.33		$	—		$	5.04		$	7.79

The following table summarizes information about stock options outstanding as of September 30, 2018:



Options	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2017	3,950		$	21.54
Options Granted	1,065		9.75
Options Exercised	—		—
Options Cancelled	(464	)	21.81
Outstanding at September 30, 2018	4,551		$	18.75	5.10	$	56
Vested at September 30, 2018	1,449		$	31.04	3.23	$	—
Exercisable at September 30, 2018	1,449		$	31.04	3.23	$	—

For the three months ended September 30, 2018 and 2017, the Company recognized nil for both periods, the total intrinsic value for stock options exercised. For the nine months ended September 30, 2018 and 2017, the Company recognized nil and $1.0 million, respectively in the total intrinsic value for stock options exercised.

Awards of Restricted Stock and Performance Stock

There were no significant changes to Company’s restricted stock award (“Restricted Stock”) and performance stock plan during the three and nine months ended September 30, 2018.

A summary of the Company’s unvested restricted stock at September 30, 2018, and changes during the nine months ended September 30, 2018, is presented below:



Unvested Restricted Stock	Number of Awards		Weighted- Average Grant Date Fair Value
Unvested at December 31, 2017	2,064		$	22.75
Granted	1,801		9.15
Vested	(738	)	26.75
Forfeited	(211	)	17.52
Unvested at September 30, 2018	2,916		$	13.74

Restricted stock awards are granted subject to other service conditions or service and performance conditions (“Performance-Based Awards”). Restricted stock and performance-based awards are measured at the closing stock price at the date of grant and are recognized straight line over the requisite service period.

Share Repurchase Program

There were no repurchases in 2018. In 2018, the Company retired 3.9 million shares of Common Stock that were previously repurchased in prior years. Any related additional paid in capital and par values were removed from the Common Stock numbers.

Restructuring

9 Months Ended

Sep. 30, 2018

Restructuring and Related Activities [Abstract]

Restructuring

Throughout 2017, the Company initiated a work-force reduction as part of a corporate restructuring, with reductions occurring across all levels and departments within the Company, primarily to reduce costs subsequent to an acquisition or divestiture. As part of these efforts, the Company continues to identify facilities consolidation and workforce optimization opportunities to better align the Company’s resources with its key strategic priorities. These measures were intended to reduce costs and to align the Company’s resources with its key strategic priorities. The Company authorized additional work force reduction initiatives in July 2018 and in the period ending September 30, 2018. As of September 30, 2018, there were $4.4 million of accrued restructuring charges on the Condensed Consolidated Balance Sheets.

A summary of the Company’s restructuring accrual at September 30, 2018 and changes during the nine months ended September 30, 2018, are presented below:



	Balance at December 31, 2017		Charges		Payments			Other Adjustments¹			Balance at September 30, 2018
Employment termination costs	$	474	$	8,003	$	(6,505	)	$	(38	)	$	1,934
Facilities consolidation	24		422		(14		)	1,997			2,429
Total	$	498	$	8,425	$	(6,519	)	$	1,959		$	4,363

________________________________


⁽¹⁾	Includes non-cash adjustments.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recognized approximately $1.6 million and $18.0 million in related income tax benefits during the nine months ended September 30, 2018 and 2017, respectively. The effective tax rate was approximately 1.3% for the nine months ended September 30, 2018, which was lower than the U.S. federal statutory rate primarily due to the full valuation allowances recorded in the fourth quarter of 2017 and the benefits recorded discretely in the third quarter of 2018 from the expiration of the statute of limitations for uncertain tax positions. The Company considered all available evidence, including historical profitability and projections of future taxable income together with new evidence, both positive and negative, that could affect the view of the future realization of deferred tax assets. As a result of the assessment, no change was recorded by the Company to the valuation allowance during the nine months ended September 30, 2018.

Earnings per Common Share (EPS)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings per Common Share (EPS)

Earnings per Common Share (“EPS”)

Basic EPS is computed based upon the weighted average number of common shares outstanding for the year. Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of the Company’s common stock for the year. The Company includes participating securities (Redeemable Convertible Preferred Stock - Participation with Dividends on Common Stock that contain preferred dividend) in the computation of EPS pursuant to the two-class method. The two-class method of computing earnings per share is an allocation method that calculates earnings per share for common stock and participating securities. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company.

The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income attributable to common stockholders per common share from continued and discontinued operations.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Numerator - Basic:
Net loss from continuing operations	$	(46,644	)	$	(45,206	)	$	(125,885	)	$	(113,266	)
Net (income) loss attributable to redeemable noncontrolling interests	(422		)	1,276			2,122			6,980
Preferred stock dividend	(7,463		)	—			(18,076		)	—
Net (loss) income from continuing operations attributable to Synchronoss	(54,529		)	(43,930		)	(141,839		)	(106,286		)

Income from discontinued operations, net of taxes**	—			8,842			—			(14,067		)
Net (loss) income attributable to Synchronoss	$	(54,529	)	$	(35,088	)	$	(141,839	)	$	(120,353	)

Numerator - Diluted:
Net (loss) income from continuing operations attributable to Synchronoss	$	(54,529	)	$	(43,930	)	$	(141,839	)	$	(106,286	)
Income effect for interest on convertible debt, net of tax	—			—			—			—
Net loss from continuing operations adjusted for the convertible debt	(54,529		)	(43,930		)	(141,839		)	(106,286		)

Income from discontinued operations, net of taxes**	—			8,842			—			(14,067		)
Net loss attributable to Synchronoss	$	(54,529	)	$	(35,088	)	$	(141,839	)	$	(120,353	)

Denominator:
Weighted average common shares outstanding — basic	39,612			44,893			40,405			44,576
Dilutive effect of:
Shares from assumed conversion of convertible debt ¹	—			—			—			—
Shares from assumed conversion of preferred stock ²	—			—			—			—
Options and unvested restricted shares	—			—			—			—
Weighted average common shares outstanding — diluted	39,612			44,893			40,405			44,576

Basic EPS
Continuing operations	$	(1.38	)	$	(0.98	)	$	(3.51	)	$	(2.38	)
Discontinued operations**	—			0.20			—			(0.32		)
	$	(1.38	)	$	(0.78	)	$	(3.51	)	$	(2.70	)
Diluted EPS
Continuing operations	$	(1.38	)	$	(0.98	)	$	(3.51	)	$	(2.38	)
Discontinued operations**	—			0.20			—			(0.32		)
	$	(1.38	)	$	(0.78	)	$	(3.51	)	$	(2.70	)

Anti-dilutive stock options excluded	4,647			3,012			4,412			2,655
Unvested shares of restricted stock awards	2,916			3,259			2,916			3,259

________________________________


**	See Note 3 - Acquisitions and Divestitures for transactions classified as discontinued operations.


⁽¹⁾	The calculation for each period does not include the effect of assumed conversion of convertible debt of 4,325,646 shares, which is based on 18.8072 shares per $1,000 principal amount of the 2019 Notes.


⁽²⁾	The calculation for each period does not include the effect of assumed conversion of preferred stock of 10,843,398 shares, which is based on 55.5556 shares per $1,000 principal amount of the preferred stock, because the effect would have been anti–dilutive.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies In the ordinary course of business, the Company is regularly subject to various claims, suits, regulatory inquiries and investigations. The Company records a liability for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable, and the loss can be reasonably estimated. Management has also identified certain other legal matters where they believe an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against the Company, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the Company’s business, financial position, results of operations, or cash flows, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. The Company also evaluates other contingent matters, including income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of operations, or financial condition of the Company. Legal Matters On May 1, 2017, May 2, 2017, June 8, 2017 and June 14, 2017, four putative class actions were filed against the Company and certain of its officers and directors in the United States District Court for the District of New Jersey (the “Securities Law Action”). After these cases were consolidated, the court appointed as lead plaintiff Employees’ Retirement System of the State of Hawaii, which filed, on November 20, 2017, a consolidated amended complaint purportedly on behalf of purchasers of the Company’s common stock between February 3, 2016 and June 13, 2017. On February 2, 2018, the defendants moved to dismiss the consolidated amended complaint in its entirety, with prejudice. Before that motion was decided, on August 24, 2018, lead plaintiff filed a second consolidated amended complaint purportedly on behalf of purchasers of our common stock between October 28, 2014 and June 13, 2017. The second consolidated amended complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and it alleges, among other things, that the defendants made false and misleading statements of material information concerning the Company’s financial results, business operations, and prospects. The plaintiff seeks unspecified damages, fees, interest, and costs. The Company believes that the asserted claims lack merit, and the Company intends to defend against all of the claims vigorously. Due to the inherent uncertainties of litigation, the Company cannot predict the outcome of the actions at this time and can give no assurance that the asserted claims will not have a material adverse effect on the financial position or results of operations of the Company. On September 15, 2017, October 24, 2017, October 27, 2017 and October 30, 2017, Synchronoss shareholders filed derivative lawsuits against certain of the Company’s officers and directors and the Company (as nominal defendant) in the United States District Court for the District of New Jersey (the “Derivative Suits”). On May 24, 2018, the Court consolidated the Derivative Suits and appointed Lisa LeBoeuf as lead plaintiff. The lead plaintiff designated as the Operative Complaint the complaint she previously had filed on October 27, 2017, which alleges claims related to breaches of fiduciary duties and unjust enrichment. The Operative Complaint’s allegations relate to substantially the same facts as those underlying the Securities Law Action described above. Plaintiff seeks unspecified damages and for the Company to take steps to improve its corporate governance and internal procedures. Defendants’ motion to dismiss the Operative Complaint is due November 14, 2018. The Company believes that the asserted claims lack merit, and the Company intends to defend against all of the claims vigorously. Due to the inherent uncertainties of litigation, the Company cannot predict the outcome of the Derivative Suits at this time, and the Company can give no assurance that the asserted claims will not have a material adverse effect on the Company’s financial position or results of operations. On July 11, 2017, Shareholder Representative Services LLC, on behalf of the persons entitled to receive merger consideration (the “Sellers”) in connection with the Company’s acquisition of Razorsight, commenced arbitration against the Company with respect to a dispute over the amount due to the Sellers as additional consideration. Under the Razorsight purchase agreement, the Sellers are entitled to a percentage of any revenue recognized by the Company generated from the sale or licensing of Razorsight products in 2016 after a specific revenue threshold is obtained. The parties disagreed over the determination of the amount of revenue recognized in 2016. The parties entered into an agreement resolving the arbitration in May 2018. On June 13, 2018, The Bank of New York Mellon, in its capacity as trustee (the “Trustee”) under the indenture dated as of August 12, 2014 (the “Indenture”) governing for the 2019 Notes, filed a verified complaint with the Court of Chancery of the State of Delaware, captioned The Bank of New York Mellon, as Indenture Trustee v. Synchronoss Technologies, Inc. (the “BNY Action”). The BNY Action complaint alleges that a “Fundamental Change” has occurred under the Indenture as a result of the Company’s Common Stock ceasing to be listed or quoted on Nasdaq and that an event of default under the Indenture has occurred as a result of the Company’s failure to provide a notice of such Fundamental Change which, if true, following notice from holders of more than 25% of the outstanding principal under the Notes would trigger the acceleration of the principal and interest outstanding under the 2019 Notes, which otherwise mature on August 15, 2019. On November 2, 2018, the parties filed a stipulation of dismissal of the BNY Action. For further details, see Note 14 - Subsequent Events Review. Except as set forth above, the Company is not currently subject to any legal proceedings that could have a material adverse effect on its operations; however, it may from time to time become a party to various legal proceedings arising in the ordinary course of its business. The Company is currently the plaintiff in several patent infringement cases. The defendants in several of these cases have filed counterclaims. Although the Company cannot predict the outcome of the cases at this time due to the inherent uncertainties of litigation, the Company continues to pursue its claims and believes that the counterclaims are without merit, and the Company intends to defend against all of such counterclaims. Nasdaq Compliance On September 26, 2018, the Company received notice that the Nasdaq Listing Qualifications Staff (the “Staff”) approved the listing of its common stock on The Nasdaq Stock Market (“Nasdaq”). Previously, the Company’s common stock had been suspended from trading on Nasdaq for failure to comply with the timely filing of certain periodic reports with the SEC. For further details see Note 14 - Subsequent Events Review.

Additional Financial Information

9 Months Ended

Sep. 30, 2018

Other Income and Expenses [Abstract]

Additional Financial Information

Other (expense) income, net

The following table sets forth the components of Other (expense) income, net included in the Condensed Consolidated Statements of Operations:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
FX gains ⁽¹⁾	$	38		$	(173	)	$	(241	)	$	(2,912	)
PIK Note impairment ⁽²⁾	(18,225		)	—			(18,225		)	—
Litigation settlement ⁽³⁾	4,495			—			4,495			—
Remeasurement gain on financial instrument ⁽⁴⁾	—			—			3,849			—
Divestiture: SpeechCycle ⁽⁵⁾	—			—			—			4,947
Income from Investment ⁽⁶⁾	519			—			519			—
Royalty income ⁽⁷⁾	—			—			92			—
Others ⁽⁸⁾	(266		)	(83		)	331			339
Total	$	(13,439	)	$	(256	)	$	(9,180	)	$	2,374

________________________________


⁽¹⁾	Fair value of foreign exchange gains and losses


⁽²⁾	PIK Note impairment on the troubled debt restructuring


⁽³⁾	Represents Legal settlement of $4.2M from Open Exchange and $0.3M IP settlement from F-Secure


⁽⁴⁾	Remeasurement of gain/loss on Put option for common shares held by Siris.


⁽⁵⁾	Gain on Divestitures: SpeechCycle


⁽⁶⁾	Represents gain on sale on the Company’s cost investment in Clarity, Money Inc.


⁽⁷⁾	Includes royalty income in connection with Mirapoint sale


⁽⁸⁾	Represents individual transactions in other income (expense) that management determined to be immaterial

Subsequent Events Review	9 Months Ended
Subsequent Events Review	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events Review	Subsequent Events Review Nasdaq listing On October 1, 2018, the suspension of trading in the Company’s common stock on The Nasdaq Global Select Market was lifted and the Company’s common stock resumed trading under the symbol “SNCR”. Repayment of Convertible Note & legal settlement On November 2, 2018, the Company retired approximately $116.0 million of 2019 Notes as a part of settlement agreement entered into on November 1, 2018, among the Company, Indaba Capital Fund, L.P. (“Indaba”) and Westwood Management Corp. (“Westwood”) related to BNY Action, and as a result the parties filed a stipulation of dismissal. For further details see Note 12 - Commitments and Contingencies. Contingent receivable During September, Impala (an affiliate of Siris) announced its sale of Intralinks to SS&C Technologies, which is expected to close during the fourth quarter. As part of the Company’s sale of Intralinks, it can earn up $25.0 million from Siris’ sale, which is expected to be earned upon consummation into discontinued operations on the Condensed Consolidated Statement of Operations. For further details on the sale of Intralinks to Impala (a Siris affiliate), see Note 3- Acquisition and Divestitures. The Company has evaluated all subsequent events through the filing date of this form 10-Q for appropriate accounting and disclosures, and there are no subsequent event disclosures required aside from the foregoing events.

Basis of Presentation and Consolidation (Policies)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Consolidation

Restricted Cash

Restricted cash includes amounts to various deposits, escrows and other cash collateral that are restricted by contractual obligation.

Recently Issued Accounting Standards

Recent accounting pronouncements adopted



Standard	Description	Effect on the financial statements
Accounting Standards Update (“ASU”) 2017-09 Stock Compensation (Topic 718), Scope of Modification	In May 2017, the Financial Accounting Standards Board (“FASB”) issued guidance which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Entities will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The guidance also clarifies that a modification to an award could be significant and therefore require disclosure, even if modification accounting is not required. ASU 2017-09 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2017. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued. ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date.	This ASU did not have a material effect on the Company’s condensed consolidated financial statements as of the date of adoption.
Date of adoption: January 1, 2018.

Standards issued not yet adopted



Standard	Description	Effect on the financial statements
ASU 2018-15 Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Cloud Computing Arrangements	In August 2018, the FASB issued final guidance requiring a customer in a cloud computing arrangement that is a service contract to follow the internal use software guidance in Accounting Standards Codification (“ASC”) 350-402 Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40) to determine which implementation costs to capitalize as assets. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019. Early adoption of the amendments is permitted, including adoption in any interim period, for all entities and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.	The Company is currently reviewing its cloud computing arrangements to evaluate the impact of adoption of the final guidance but does not expect that the pending adoption of this ASU will have a material effect on its condensed consolidated financial statements.
Date of adoption: January 1, 2020.
Update 2018-07—Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting	In June 2018, the FASB issued ASU 2018-07, regarding ASC Topic 718 “Compensation - Stock Compensation,” which largely aligns the accounting for share-based compensation for non-employees with employees. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606.	The Company does not expect the adoption of this standard to have a material effect on its condensed consolidated financial statements.
Date of adoption: January 1, 2019.
ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	In June 2016, the FASB issued ASU 2016-13 which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU is effective for public companies in annual periods beginning after December 15, 2019, and interim periods within those years. Early adoption is permitted beginning after December 15, 2018 and interim periods within those years.	The Company is currently evaluating the impact of the adoption of this ASU on its condensed consolidated financial statements.
Date of adoption: January 1, 2020.



ASU 2016-02 Leases (Topic 842 or “ASC 842”)	In February 2016, the FASB issued ASU 2016-02 which requires lessees to recognize, for all leases of 12 months or more, a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature of an entity’s leasing activities. The ASU is effective for public companies in interim and annual periods beginning after December 15, 2018, with early adoption permitted, and must be adopted using a modified retrospective approach.	The Company has elected to apply the transition requirements as of January 1, 2019 and as such, the Company will neither restate comparative periods for the effects of applying ASC 842 nor provide the disclosures required by ASC 842 for the comparative periods. In addition, there are several practical expedients and accounting policy elections offered within ASC 842 to both ease the transition to, and simplify the adoption of, ASC 842. In connection therewith, the Company elected the package of transition practical expedients related to lease identification, lease classification, and initial direct costs. The Company also elected the lessor practical expedient to not separate lease and non-lease components when the requisite criteria is met to be treated as such. In addition, the Company made the following accounting policy elections: (1) the Company will not separate lease and non-lease components by class of underlying asset (2) the Company will apply the portfolio approach, specifically in the development of the Company’s discount rates (3) the Company will apply the short-term lease exemption by class of underlying asset (4) the Company will apply a capitalization threshold policy.
Date of adoption: January 1, 2019.		Adoption of the new standard will result in the recording of additional net lease assets and lease liabilities as of January 1, 2019. The difference between the additional lease assets and lease liabilities, net of the deferred tax impact, will be recorded as an adjustment to retained earnings. The standard will not materially impact our consolidated net earnings and will have no impact on cash flows.

Changes in accounting policies as a result of adopting Topic 606 and nature of goods

Transaction service arrangements include services such as processing equipment orders, new account set‑up and activation, number port requests, credit checks and inventory management.

The Company’s typical performance obligations include the following:



Performance Obligation	When Performance Obligation is Typically Satisfied	When Payment is Typically Due	How Standalone Selling Price is Typically Estimated
Software License
Software License	Upon shipment or made available for download (point in time)	Within 90 days of delivery	Observable transactions or residual approach when prices are highly variable or uncertain
Software License with significant customization	Over the performance of the customization and installation of the software (over time)	Within 90 days of services being performed	Residual approach
Hosting Services	As hosting services are provided (over time)	Within 90 days of services being provided	Estimated using a cost-plus margin approach
Professional Services
Consulting	As work is performed (over time)	Within 90 days of services being performed	Observable transactions
Customization	SaaS: Over the remaining term of the SaaS agreement License: Over the performance of the customization and installation of the software (over time)	Within 90 days of services being performed	Observable transactions
Transaction Services	As transaction is processed (over time)	Within 90 days of transaction	Observable transactions
Subscription Services
Customer Support	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable transactions
SaaS	Over the course of the SaaS service once the system is available for use (over time)	Within 90 days of services being performed	Estimated using a cost-plus margin approach

Fair Value Measurement


•	Level 1 - Observable inputs - quoted prices in active markets for identical assets and liabilities;


•	Level 2 - Observable inputs other than the quoted prices in active markets for identical assets and liabilities includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, and amounts derived from valuation models where all significant inputs are observable in active markets; and


•	Level 3 - Unobservable inputs - includes amounts derived from valuation models where one or more significant inputs are unobservable and require the Company to develop relevant assumptions.

Basis of Presentation and Consolidation (Tables)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The Company’s typical performance obligations include the following:



Performance Obligation	When Performance Obligation is Typically Satisfied	When Payment is Typically Due	How Standalone Selling Price is Typically Estimated
Software License
Software License	Upon shipment or made available for download (point in time)	Within 90 days of delivery	Observable transactions or residual approach when prices are highly variable or uncertain
Software License with significant customization	Over the performance of the customization and installation of the software (over time)	Within 90 days of services being performed	Residual approach
Hosting Services	As hosting services are provided (over time)	Within 90 days of services being provided	Estimated using a cost-plus margin approach
Professional Services
Consulting	As work is performed (over time)	Within 90 days of services being performed	Observable transactions
Customization	SaaS: Over the remaining term of the SaaS agreement License: Over the performance of the customization and installation of the software (over time)	Within 90 days of services being performed	Observable transactions
Transaction Services	As transaction is processed (over time)	Within 90 days of transaction	Observable transactions
Subscription Services
Customer Support	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable transactions
SaaS	Over the course of the SaaS service once the system is available for use (over time)	Within 90 days of services being performed	Estimated using a cost-plus margin approach

Disaggregation of Revenue



	Three Months Ended September 30, 2018								Three Months Ended September 30, 2017
	Cloud		Digital		Messaging		Total		Cloud		Digital		Messaging		Total
Geography
Americas	$	41,029	$	24,563	$	2,714	$	68,306	$	49,555	$	28,071	$	2,125	$	79,751
APAC	—		2,082		4,647		6,729		—		1,637		4,540		6,177
EMEA	1,967		2,216		4,068		8,251		1,708		634		2,745		5,087
Total	$	42,996	$	28,861	$	11,429	$	83,286	$	51,263	$	30,342	$	9,410	$	91,015

Service Line
Professional Services	$	2,982	$	4,051	$	1,728	$	8,761	$	4,309	$	6,990	$	1,809	$	13,108
Transaction Services	1,918		2,845		—		4,763		2,883		4,113		—		6,996
Subscription Services	38,096		20,572		7,976		66,644		41,831		17,666		5,706		65,203
License	—		1,393		1,725		3,118		2,240		1,573		1,895		5,708
Total	$	42,996	$	28,861	$	11,429	$	83,286	$	51,263	$	30,342	$	9,410	$	91,015



	Nine Months Ended September 30, 2018								Nine Months Ended September 30, 2017
	Cloud		Digital		Messaging		Total		Cloud		Digital		Messaging		Total
Geography
Americas	$	113,452	$	65,614	$	7,585	$	186,651	$	175,560	$	75,371	$	5,812	$	256,743
APAC	—		4,697		30,287		34,984		—		5,157		17,864		23,021
EMEA	6,568		3,747		11,787		22,102		5,248		2,630		8,460		16,338
Total	$	120,020	$	74,058	$	49,659	$	243,737	$	180,808	$	83,158	$	32,136	$	296,102

Service Line
Professional Services	$	10,002	$	14,053	$	8,118	$	32,173	$	23,731	$	19,307	$	5,423	$	48,461
Transaction Services	6,703		6,740		—		13,443		9,098		15,058		—		24,156
Subscription Services	102,891		50,103		23,709		176,703		140,224		40,107		21,708		202,039
License	424		3,162		17,832		21,418		7,755		8,686		5,005		21,446
Total	$	120,020	$	74,058	$	49,659	$	243,737	$	180,808	$	83,158	$	32,136	$	296,102

Contract with Customer, Asset and Liability

Significant changes in the contract liabilities balance (current and noncurrent) during the period are as follows (in thousands):



	Contract Liabilities*
Balance - January 1, 2018	$	115,009
Revenue recognized in the period	(99,405		)
Amounts billed but not recognized as revenue	68,257
Balance - September 30, 2018	$	83,861

________________________________


*	Comprised of Deferred Revenue

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The table below shows Topic 606 Retained earnings reconciliation:



Cumulative catch up Topic 606 adjustment as of January 1, 2018	$	(10,130	)
Net loss from continued operations	31,001
Retained Earnings at September 30, 2018	$	20,871

In accordance with Topic 606, the disclosure of the impact of adoption to the Company’s Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations was as follows:



	September 30, 2018
	As Reported			Impacts of the New Revenue Standard			Adjusted amounts under prior GAAP
ASSETS
Current assets:
Cash and cash equivalents	$	222,438		$	—		$	222,438
Restricted cash**	4,377			—			4,377
Marketable securities, current	6,989			—			6,989
Accounts receivable, net	52,617			19,718			32,899
Prepaid expenses	46,922			—			46,922
Other current assets ⁽²⁾	14,115			(415		)	14,530
Total current assets	347,458			19,303			328,155
Marketable securities, non-current	8,716			—			8,716
Property and equipment, net	80,519			—			80,519
Goodwill	234,480			—			234,480
Intangible assets, net	117,448			—			117,448
Other assets ⁽²⁾	8,940			369			8,571
Note receivable from related party**	66,089			—			66,089
Equity method investment	30,694			—			30,694
Total assets	$	894,344		$	19,672		$	874,672

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	14,300		$	—		$	14,300
Accrued expenses	53,794			(14,756		)	68,550
Deferred revenues, current ⁽³⁾	54,046			2,281			51,765
Short-term debt	228,764			—			228,764
Total current liabilities	350,904			(12,475		)	363,379
Lease financing obligation	10,006			—			10,006
Deferred tax liabilities	12,109			—			12,109
Deferred revenues, non-current ⁽³⁾	29,815			11,200			18,615
Other liabilities	11,329			—			11,329
Redeemable noncontrolling interest	12,500			—			12,500
Commitments and contingencies (Note 12)
Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 195 shares issued and outstanding at September 30, 2018	176,160			—			176,160
Stockholders’ equity:
Common stock, $0.0001 par value; 100,000 shares authorized, 49,817 and 52,024 shares issued; 42,655 and 46,965 outstanding at September 30, 2018 and December 31, 2017, respectively	5			—			5
Treasury stock, at cost (7,162 and 5,059 shares at September 30, 2018 and December 31, 2017, respectively)	(82,087		)	—			(82,087		)
Additional paid-in capital	561,144			—			561,144
Accumulated other comprehensive loss ⁽⁴⁾	(30,557		)	76			(30,633		)
Accumulated deficit	(156,984		)	20,871			(177,855		)
Total stockholders’ equity	291,521			20,947			270,574
Total liabilities and stockholders’ equity	$	894,344		$	19,672		$	874,672

________________________________


**	See Note 5 -Investments in Affiliates and Related Transactions for related party transactions reflected in this account.



	Three Months Ended September 30, 2018									Nine Months Ended September 30, 2018
	As Reported			Impacts of the New Revenue Standard			Adjusted amounts under prior GAAP			As Reported			Impacts of the New Revenue Standard			Adjusted amounts under prior GAAP
Net revenues ⁽³⁾	$	83,286		$	11,605		$	71,681		$	243,737		$	31,871		$	211,866
Costs and expenses:
Cost of revenues* ⁽⁵⁾	43,714			249			43,465			127,788			613			127,175
Research and development	18,684			—			18,684			59,789			—			59,789
Selling, general and administrative ⁽²⁾	27,320			51			27,269			99,368			152			99,216
Restructuring charges	4,539			—			4,539			8,425			—			8,425
Depreciation and amortization	23,658			—			23,658			70,330			—			70,330
Total costs and expenses	117,915			300			117,615			365,700			765			364,935
Loss from continuing operations	(34,629		)	11,305			(45,934		)	(121,963		)	31,106			(153,069		)
Interest income	203			—			203			7,518			—			7,518
Interest expense	(1,370		)	(33		)	(1,337		)	(3,935		)	(105		)	(3,830		)
Other expense, net	(13,439		)	—			(13,439		)	(9,180		)	—			(9,180		)
Equity method investment income	283			—			283			71			—			71
Loss from continuing operations, before taxes	(48,952		)	11,272			(60,224		)	(127,489		)	31,001			(158,490		)
Benefit for income taxes	2,308			—			2,308			1,604			—			1,604
Net loss from continuing operations	(46,644		)	11,272			(57,916		)	(125,885		)	31,001			(156,886		)
Net loss	(46,644		)	11,272			(57,916		)	(125,885		)	31,001			(156,886		)
Net (income) loss attributable to redeemable noncontrolling interests	(422		)	—			(422		)	2,122			—			2,122
Preferred stock dividend	(7,463		)	—			(7,463		)	(18,076		)	—			(18,076		)
Net loss attributable to Synchronoss	$	(54,529	)	$	11,272		$	(65,801	)	$	(141,839	)	$	31,001		$	(172,840	)

Basic:
Continuing operations	$	(1.38	)	$	0.28		$	(1.66	)	$	(3.51	)	$	0.77		$	(4.28	)
Diluted:
Continuing operations	$	(1.38	)	$	0.28		$	(1.66	)	$	(3.51	)	$	0.77		$	(4.28	)
Weighted-average common shares outstanding:
Basic	39,612						39,612			40,405						40,405
Diluted	39,612						39,612			40,405						40,405

________________________________


*	Cost of revenues excludes depreciation and amortization which are shown separately.


⁽¹⁾	Reflects the impact of changes to the contract term as defined by the new revenue recognition standard.


⁽²⁾	Reflects capitalization of costs to obtain a contract.


⁽³⁾	Reflects the impact of changes in the delayed pattern of recognition on the Company’s professional services, timing of revenue recognition and allocation of purchase price on software license contracts and legally enforceable rights and obligations prior to when persuasive evidence of an arrangement exists.


⁽⁴⁾	Reflects the impact of foreign currency translation related to the above impacts.


⁽⁵⁾	Reflects the impact of amortization of third party costs over the term of the contract.

Recent accounting pronouncements adopted



Standard	Description	Effect on the financial statements
Accounting Standards Update (“ASU”) 2017-09 Stock Compensation (Topic 718), Scope of Modification	In May 2017, the Financial Accounting Standards Board (“FASB”) issued guidance which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Entities will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The guidance also clarifies that a modification to an award could be significant and therefore require disclosure, even if modification accounting is not required. ASU 2017-09 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2017. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued. ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date.	This ASU did not have a material effect on the Company’s condensed consolidated financial statements as of the date of adoption.
Date of adoption: January 1, 2018.

Standards issued not yet adopted



Standard	Description	Effect on the financial statements
ASU 2018-15 Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Cloud Computing Arrangements	In August 2018, the FASB issued final guidance requiring a customer in a cloud computing arrangement that is a service contract to follow the internal use software guidance in Accounting Standards Codification (“ASC”) 350-402 Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40) to determine which implementation costs to capitalize as assets. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019. Early adoption of the amendments is permitted, including adoption in any interim period, for all entities and should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.	The Company is currently reviewing its cloud computing arrangements to evaluate the impact of adoption of the final guidance but does not expect that the pending adoption of this ASU will have a material effect on its condensed consolidated financial statements.
Date of adoption: January 1, 2020.
Update 2018-07—Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting	In June 2018, the FASB issued ASU 2018-07, regarding ASC Topic 718 “Compensation - Stock Compensation,” which largely aligns the accounting for share-based compensation for non-employees with employees. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606.	The Company does not expect the adoption of this standard to have a material effect on its condensed consolidated financial statements.
Date of adoption: January 1, 2019.
ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	In June 2016, the FASB issued ASU 2016-13 which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU is effective for public companies in annual periods beginning after December 15, 2019, and interim periods within those years. Early adoption is permitted beginning after December 15, 2018 and interim periods within those years.	The Company is currently evaluating the impact of the adoption of this ASU on its condensed consolidated financial statements.
Date of adoption: January 1, 2020.



ASU 2016-02 Leases (Topic 842 or “ASC 842”)	In February 2016, the FASB issued ASU 2016-02 which requires lessees to recognize, for all leases of 12 months or more, a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature of an entity’s leasing activities. The ASU is effective for public companies in interim and annual periods beginning after December 15, 2018, with early adoption permitted, and must be adopted using a modified retrospective approach.	The Company has elected to apply the transition requirements as of January 1, 2019 and as such, the Company will neither restate comparative periods for the effects of applying ASC 842 nor provide the disclosures required by ASC 842 for the comparative periods. In addition, there are several practical expedients and accounting policy elections offered within ASC 842 to both ease the transition to, and simplify the adoption of, ASC 842. In connection therewith, the Company elected the package of transition practical expedients related to lease identification, lease classification, and initial direct costs. The Company also elected the lessor practical expedient to not separate lease and non-lease components when the requisite criteria is met to be treated as such. In addition, the Company made the following accounting policy elections: (1) the Company will not separate lease and non-lease components by class of underlying asset (2) the Company will apply the portfolio approach, specifically in the development of the Company’s discount rates (3) the Company will apply the short-term lease exemption by class of underlying asset (4) the Company will apply a capitalization threshold policy.
Date of adoption: January 1, 2019.		Adoption of the new standard will result in the recording of additional net lease assets and lease liabilities as of January 1, 2019. The difference between the additional lease assets and lease liabilities, net of the deferred tax impact, will be recorded as an adjustment to retained earnings. The standard will not materially impact our consolidated net earnings and will have no impact on cash flows.

Fair Value Measurements of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Measurements of Assets and Liabilities

Schedule of assets and liabilities held and their related classifications under the fair value hierarchy

The following is a summary of assets, liabilities and redeemable noncontrolling interests and their related classifications under the fair value hierarchy:



	September 30, 2018
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash, cash equivalents and restricted cash ⁽¹⁾	$	226,815	$	226,815	$	—	$	—
Marketable securities-short term ⁽²⁾	6,989		—		6,989		—
Marketable securities-long term ⁽²⁾	8,716		—		8,716		—
Total assets	$	242,520	$	226,815	$	15,705	$	—
Temporary equity
Redeemable noncontrolling interests ⁽³⁾	$	12,500	$	—	$	—	$	12,500
Total temporary equity	$	12,500	$	—	$	—	$	12,500



	December 31, 2017
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash, cash equivalents and restricted cash ⁽¹⁾	$	246,125	$	246,125	$	—	$	—
Marketable securities-short term ⁽²⁾	3,111		—		3,111		—
Total assets	$	249,236	$	246,125	$	3,111	$	—
Liabilities
Contingent interest derivative ⁽⁴⁾	$	193	$	—	$	—	$	193
Mandatorily redeemable financial instrument ⁽⁵⁾	$	37,959	$	—	$	—	$	37,959
Total liabilities	$	38,152	$	—	$	—	$	38,152
Temporary Equity
Redeemable noncontrolling interests ⁽³⁾	$	25,280	$	—	$	—	$	25,280
Total temporary equity	$	25,280	$	—	$	—	$	25,280

________________________________


⁽¹⁾	Cash equivalents primarily included money market funds.


⁽²⁾	Marketable securities are comprised of municipal bonds and certificates of deposit.


⁽³⁾	Put arrangements held by the noncontrolling interests in certain of the Company’s joint ventures.


⁽⁴⁾	Contingent interest derivative related to convertible debt is included in accrued expenses, for further details see Note 6 - Debt.

⁽⁵⁾

Schedule of estimated fair value of investments classified as available for sale

At September 30, 2018 and December 31, 2017, the estimated fair value of investments classified as available-for-sale, were as follows:



	September 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities:
Certificates of deposit	$	3,776	$	—	$	(15	)	$	3,761
Corporate bonds	402		—		(3		)	399
Municipal bonds	11,598		1		(54		)	11,545
Total marketable securities	$	15,776	$	1	$	(72	)	$	15,705



	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities:
Certificates of deposit	$	250	$	—	$	—		$	250
Municipal bonds	2,867		—		(6		)	2,861
Total marketable securities	$	3,117	$	—	$	(6	)	$	3,111

Expected maturities

The contractual maturities of marketable debt securities were as follows:



	September 30, 2018
	Amortized Cost		Fair Value
Due within one year	$	7,006	$	6,989
Due after 1 year through 5 years	8,718		8,664
Due after 5 years through 10 years	52		52
Due after 10 years	—		—
Total available-for-sale debt securities	$	15,776	$	15,705

Redeemable Noncontrolling Interests

Fair Value Measurements of Assets and Liabilities

Schedule of changes in fair value of Level 3

The changes in fair value of the Company’s Level 3 redeemable noncontrolling interests during the nine months ended September 30, 2018 were as follows:



Balance at December 31, 2017	$	25,280
Fair value adjustment	(10,658		)
Net loss attributable to redeemable noncontrolling interests	(2,122		)
Balance at September 30, 2018	$	12,500

Investments in Affiliates and Related Transactions (Tables)

9 Months Ended

Sep. 30, 2018

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The STIN affiliate balances and their classification in the Condensed Consolidated Balance Sheet as of September 30, 2018, were as follows:



	September 30, 2018		December 31, 2017
Restricted cash ^(A)	$	—	$	118
Accounts receivable ^(B)	22,274		18,033
Total assets	$	22,274	$	18,151

Accrued expenses ^(A)	—		118
Total liabilities	$	—	$	118

________________________________


^(A)	The Company collected zero and $0.1 million from STIN customers, on behalf of STIN, which remained outstanding as of September 30, 2018 and December 31, 2017, respectively. This amount has been classified in short-term restricted cash and in accrued expenses on the Condensed Consolidated Balance Sheets.


^(B)	These amounts principally included revenues generated from the Cloud and Telephony Support Services agreement and pass-through of vendor expenses incurred during the transition and assignment of vendor contracts.

STIN - Selected financial data

The following table displays certain key financial data pertaining to the operations of STIN for the three and nine months ended September 30, 2018:



	Three Months Ended		Nine Months Ended
Revenues	$	33,119	$	94,758
Expenses	32,177		94,523
Net(loss) income	$	942	$	235

PIK Note

The following is a summary of the PIK Note related balances:



	Seller Note		Impairment			Unamortized Discount			Loan Accrued Interest		Distribution Note		Distribution interest		Total
December 31, 2017	$	83,000	$	(14,562	)	$	(12,163	)	$	11,096	$	6,187	$	426	$	73,984
Activity	—		(18,225		)	438			6,103		3,293		496		(7,895		)
September 30, 2018	$	83,000	$	(32,787	)	$	(11,725	)	$	17,199	$	9,480	$	922	$	66,089

Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Schedule of Debt

Total debt consists of the following:



	September 30, 2018			December 31, 2017
Convertible Senior Notes	$	230,000		$	230,000
Unamortized debt issuance cost ⁽¹⁾	(1,236		)	(2,296		)
Total debt, carrying value	$	228,764		$	227,704
Total short-term debt, carrying value	$	228,764		$	—
Total long-term debt, carrying value	$	—		$	227,704

________________________________


⁽¹⁾	Unamortized debt issuance cost is related to Convertible Senior Notes.

Schedule of Long-term Debt Instruments

The following table summarizes the Company’s interest expense:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Amended Credit Facility
Amortization of debt issuance costs	$	—	$	—	$	—	$	748
Commitment fee	—		—		—		25
Interest on borrowings	—		—		—		24
2017 Term Facility
Amortization of debt issuance costs	—		1,021		—		2,376
Interest on borrowings	—		12,411		—		29,047
Contingent Interest Derivative	—		2,489		—		2,489
Amendment fees paid to third parties	—		5,716		—		5,716
Revolving Facility
Amortization of debt issuance costs	—		204		—		542
Commitment fee	—		114		—		448
Amendment fees paid to third parties	—		1,662		—		1,662
Convertible Senior Notes
Amortization of debt issuance costs	354		354		1,060		1,060
Interest on borrowings	430		431		1,292		1,294
Additional interest on default	—		—		192		288
Capital leases	241		243		724		729
Other	345		910		667		1,568
Total	$	1,370	$	25,555	$	3,935	$	48,016

- Definition

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

+ References

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

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

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

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

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

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

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

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

+ Details

Accumulated Other Comprehensive Income/ (Loss) (Tables)

9 Months Ended

Sep. 30, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of changes in accumulated other comprehensive income (loss)

The changes in accumulated other comprehensive (loss) during the nine months ended September 30, 2018, were as follows:



	Foreign Currency Translation Adjustment			Unrealized (Loss) Income on Intra-Entity Foreign Currency Transactions			Unrealized Holding Gains (Losses) on Available-for-Sale Securities			Total
Balance at Balance at December 31, 2017	$	(20,284	)	$	(3,085	)	$	(4	)	$	(23,373	)
Other comprehensive income	(6,529		)	(883		)	(52		)	(7,464		)
Tax effect	—			280			—			280
Total comprehensive income	(6,529		)	(603		)	(52		)	(7,184		)
Balance at Balance at September 30, 2018	$	(26,813	)	$	(3,688	)	$	(56	)	$	(30,557	)

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of stock-based compensation

The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by operating expense categories, as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Cost of revenues	$	1,035	$	1,118	$	3,447	$	3,326
Research and development	1,340		1,201		4,682		4,181
Selling, general and administrative	4,841		1,359		13,911		6,920
Total stock-based compensation expense	$	7,216	$	3,678	$	22,040	$	14,427

The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by award types, as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Stock options	$	1,940	$	1,534	$	5,680	$	4,522
Restricted stock awards	5,276		2,092		16,360		9,523
Employee Stock Purchase Plan	—		52		—		382
Total stock-based compensation before taxes	$	7,216	$	3,678	$	22,040	$	14,427
Tax benefit	$	1,402	$	973	$	4,356	$	2,686

Stock options

Schedule of fair value assumptions



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Expected stock price volatility	66.0		%	0.0		%	65.2		%	49.2		%
Risk-free interest rate	2.7		%	0.0		%	2.6		%	1.7		%
Expected life of options (in years)	4.29			0.00			4.11			4.03
Expected dividend yield	0.0		%	0.0		%	0.0		%	0.0		%
Weighted-average fair value (grant date) of the options	$	3.33		$	—		$	5.04		$	7.79

Schedule of information about stock options outstanding

The following table summarizes information about stock options outstanding as of September 30, 2018:



Options	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2017	3,950		$	21.54
Options Granted	1,065		9.75
Options Exercised	—		—
Options Cancelled	(464	)	21.81
Outstanding at September 30, 2018	4,551		$	18.75	5.10	$	56
Vested at September 30, 2018	1,449		$	31.04	3.23	$	—
Exercisable at September 30, 2018	1,449		$	31.04	3.23	$	—

Restricted stock awards

Schedule of unvested restricted stock

A summary of the Company’s unvested restricted stock at September 30, 2018, and changes during the nine months ended September 30, 2018, is presented below:



Unvested Restricted Stock	Number of Awards		Weighted- Average Grant Date Fair Value
Unvested at December 31, 2017	2,064		$	22.75
Granted	1,801		9.15
Vested	(738	)	26.75
Forfeited	(211	)	17.52
Unvested at September 30, 2018	2,916		$	13.74

Restructuring (Tables)

9 Months Ended

Sep. 30, 2018

Restructuring and Related Activities [Abstract]

Summary of the restructuring accrual and changes

A summary of the Company’s restructuring accrual at September 30, 2018 and changes during the nine months ended September 30, 2018, are presented below:



	Balance at December 31, 2017		Charges		Payments			Other Adjustments¹			Balance at September 30, 2018
Employment termination costs	$	474	$	8,003	$	(6,505	)	$	(38	)	$	1,934
Facilities consolidation	24		422		(14		)	1,997			2,429
Total	$	498	$	8,425	$	(6,519	)	$	1,959		$	4,363

________________________________


⁽¹⁾	Includes non-cash adjustments.

Earnings per Common Share (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Schedule of reconciliation of the numerator and denominator used in computing basic and diluted net income attributable to common stockholders per common share



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Numerator - Basic:
Net loss from continuing operations	$	(46,644	)	$	(45,206	)	$	(125,885	)	$	(113,266	)
Net (income) loss attributable to redeemable noncontrolling interests	(422		)	1,276			2,122			6,980
Preferred stock dividend	(7,463		)	—			(18,076		)	—
Net (loss) income from continuing operations attributable to Synchronoss	(54,529		)	(43,930		)	(141,839		)	(106,286		)

Income from discontinued operations, net of taxes**	—			8,842			—			(14,067		)
Net (loss) income attributable to Synchronoss	$	(54,529	)	$	(35,088	)	$	(141,839	)	$	(120,353	)

Numerator - Diluted:
Net (loss) income from continuing operations attributable to Synchronoss	$	(54,529	)	$	(43,930	)	$	(141,839	)	$	(106,286	)
Income effect for interest on convertible debt, net of tax	—			—			—			—
Net loss from continuing operations adjusted for the convertible debt	(54,529		)	(43,930		)	(141,839		)	(106,286		)

Income from discontinued operations, net of taxes**	—			8,842			—			(14,067		)
Net loss attributable to Synchronoss	$	(54,529	)	$	(35,088	)	$	(141,839	)	$	(120,353	)

Denominator:
Weighted average common shares outstanding — basic	39,612			44,893			40,405			44,576
Dilutive effect of:
Shares from assumed conversion of convertible debt ¹	—			—			—			—
Shares from assumed conversion of preferred stock ²	—			—			—			—
Options and unvested restricted shares	—			—			—			—
Weighted average common shares outstanding — diluted	39,612			44,893			40,405			44,576

Basic EPS
Continuing operations	$	(1.38	)	$	(0.98	)	$	(3.51	)	$	(2.38	)
Discontinued operations**	—			0.20			—			(0.32		)
	$	(1.38	)	$	(0.78	)	$	(3.51	)	$	(2.70	)
Diluted EPS
Continuing operations	$	(1.38	)	$	(0.98	)	$	(3.51	)	$	(2.38	)
Discontinued operations**	—			0.20			—			(0.32		)
	$	(1.38	)	$	(0.78	)	$	(3.51	)	$	(2.70	)

Anti-dilutive stock options excluded	4,647			3,012			4,412			2,655
Unvested shares of restricted stock awards	2,916			3,259			2,916			3,259

________________________________


**	See Note 3 - Acquisitions and Divestitures for transactions classified as discontinued operations.


⁽¹⁾	The calculation for each period does not include the effect of assumed conversion of convertible debt of 4,325,646 shares, which is based on 18.8072 shares per $1,000 principal amount of the 2019 Notes.


⁽²⁾	The calculation for each period does not include the effect of assumed conversion of preferred stock of 10,843,398 shares, which is based on 55.5556 shares per $1,000 principal amount of the preferred stock, because the effect would have been anti–dilutive.

Additional Financial Information (Tables)

9 Months Ended

Sep. 30, 2018

Other Income and Expenses [Abstract]

Components of other (expense) income, net

The following table sets forth the components of Other (expense) income, net included in the Condensed Consolidated Statements of Operations:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
FX gains ⁽¹⁾	$	38		$	(173	)	$	(241	)	$	(2,912	)
PIK Note impairment ⁽²⁾	(18,225		)	—			(18,225		)	—
Litigation settlement ⁽³⁾	4,495			—			4,495			—
Remeasurement gain on financial instrument ⁽⁴⁾	—			—			3,849			—
Divestiture: SpeechCycle ⁽⁵⁾	—			—			—			4,947
Income from Investment ⁽⁶⁾	519			—			519			—
Royalty income ⁽⁷⁾	—			—			92			—
Others ⁽⁸⁾	(266		)	(83		)	331			339
Total	$	(13,439	)	$	(256	)	$	(9,180	)	$	2,374

________________________________


⁽¹⁾	Fair value of foreign exchange gains and losses


⁽²⁾	PIK Note impairment on the troubled debt restructuring


⁽³⁾	Represents Legal settlement of $4.2M from Open Exchange and $0.3M IP settlement from F-Secure


⁽⁴⁾	Remeasurement of gain/loss on Put option for common shares held by Siris.


⁽⁵⁾	Gain on Divestitures: SpeechCycle


⁽⁶⁾	Represents gain on sale on the Company’s cost investment in Clarity, Money Inc.


⁽⁷⁾	Includes royalty income in connection with Mirapoint sale


⁽⁸⁾	Represents individual transactions in other income (expense) that management determined to be immaterial

Basis of Presentation and Consolidation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Decrease in restricted cash			$ 87,300
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reduction to retained earnings	$ 156,984		156,984		$ 5,014
Net revenues	83,286	$ 91,015	243,737	$ 296,102
Capitalized contract cost					700
Net revenues	83,286	$ 91,015	243,737	$ 296,102
Accounting Standards Update 2014-09 \| Impacts of the New Revenue Standard
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reduction to retained earnings	(20,871)		(20,871)		$ 10,100
Net revenues	$ 11,605		$ 31,871

Basis of Presentation and Consolidation - Out of Period Adjustments (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2018

Sep. 30, 2017

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Error Corrections and Prior Period Adjustments Restatement [Line Items]

^[1]

$ 43,714

$ 45,576

$ 127,788

$ 139,386

Restatement Adjustment

$ 4,900

[1]	Cost of revenues excludes depreciation and amortization which are shown separately.

Basis of Presentation and Consolidation - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Net revenues	$ 83,286	$ 91,015	$ 243,737	$ 296,102
Americas
Disaggregation of Revenue [Line Items]
Net revenues	68,306	79,751	186,651	256,743
APAC
Disaggregation of Revenue [Line Items]
Net revenues	6,729	6,177	34,984	23,021
EMEA
Disaggregation of Revenue [Line Items]
Net revenues	8,251	5,087	22,102	16,338
Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	8,761	13,108	32,173	48,461
Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	4,763	6,996	13,443	24,156
Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	66,644	65,203	176,703	202,039
License
Disaggregation of Revenue [Line Items]
Net revenues	3,118	5,708	21,418	21,446
Cloud
Disaggregation of Revenue [Line Items]
Net revenues	42,996	51,263	120,020	180,808
Cloud \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	41,029	49,555	113,452	175,560
Cloud \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	0	0	0	0
Cloud \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	1,967	1,708	6,568	5,248
Cloud \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	2,982	4,309	10,002	23,731
Cloud \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	1,918	2,883	6,703	9,098
Cloud \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	38,096	41,831	102,891	140,224
Cloud \| License
Disaggregation of Revenue [Line Items]
Net revenues	0	2,240	424	7,755
Digital
Disaggregation of Revenue [Line Items]
Net revenues	28,861	30,342	74,058	83,158
Digital \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	24,563	28,071	65,614	75,371
Digital \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	2,082	1,637	4,697	5,157
Digital \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	2,216	634	3,747	2,630
Digital \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	4,051	6,990	14,053	19,307
Digital \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	2,845	4,113	6,740	15,058
Digital \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	20,572	17,666	50,103	40,107
Digital \| License
Disaggregation of Revenue [Line Items]
Net revenues	1,393	1,573	3,162	8,686
Messaging
Disaggregation of Revenue [Line Items]
Net revenues	11,429	9,410	49,659	32,136
Messaging \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	2,714	2,125	7,585	5,812
Messaging \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	4,647	4,540	30,287	17,864
Messaging \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	4,068	2,745	11,787	8,460
Messaging \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	1,728	1,809	8,118	5,423
Messaging \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	0	0	0	0
Messaging \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	7,976	5,706	23,709	21,708
Messaging \| License
Disaggregation of Revenue [Line Items]
Net revenues	$ 1,725	$ 1,895	$ 17,832	$ 5,005

Basis of Presentation and Consolidation - Assets and Liabilities (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Contract Asset, balance	$ 3,600
Contract Liabilities, beginning balance	115,009
Revenue recognized in the period	(99,405)
Amounts billed but not recognized as revenue	68,257
Contract Liabilities, ending balance	$ 83,861

Basis of Presentation and Consolidation - Remaining Performance Obligations (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remaining performance obligation	$ 401.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remaining performance obligation, expected timing of satisfaction, percent	87.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	2 years

Basis of Presentation and Consolidation - Schedule of Effect of New Accounting Pronouncement (Details) - USD ($)
$ / shares in Units, $ in Thousands

Sep. 30, 2018

Dec. 31, 2017

Sep. 30, 2017

Cash and cash equivalents

$ 222,438

$ 156,299

$ 210,070

Restricted cash

^[1]

4,377

89,826

Marketable securities, current

6,989

3,111

Accounts receivable, net

52,617

78,186

Prepaid expenses

46,922

33,957

Other current assets

14,115

9,600

Total current assets

347,458

370,979

Marketable securities, non-current

8,716

Property and equipment, net

80,519

111,825

Goodwill

234,480

237,303

Intangible assets, net

117,448

132,167

Note receivable from related party

8,940

5,236

^[1]

66,089

73,984

Equity method investment

30,694

33,917

Total assets

894,344

965,411

14,300

5,959

53,794

72,739

54,046

75,829

Short-term debt

228,764

Lease financing obligation

350,904

192,486

10,006

11,183

Deferred tax liabilities

12,109

13,735

29,815

25,241

Redeemable noncontrolling interest

11,329

6,195

12,500

25,280

Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 195 shares issued and outstanding at September 30, 2018

$ 176,160

$ 0

Preferred stock, par value (in dollars per share)

$ 0.0001

Preferred stock, shares authorized (shares)

10,000,000

Preferred stock, shares issued (shares)

195,000

Preferred stock, shares outstanding (shares)

195,000

Common stock, $0.0001 par value; 100,000 shares authorized, 49,817 and 52,024 shares issued; 42,655 and 46,965 outstanding at September 30, 2018 and December 31, 2017, respectively

$ 5

Common stock, par value (in dollars per share)

$ 0.0001

Common stock, shares authorized (shares)

100,000,000

Common stock, shares issued (shares)

49,817,000

52,024,000

Common stock, shares outstanding (shares)

42,655,000

46,965,000

Treasury stock, at cost (7,162 and 5,059 shares at September 30, 2018 and December 31, 2017, respectively)

$ (82,087)

$ (105,584)

Treasury stock, shares (shares)

7,162,000

5,059,000

Additional paid-in capital

$ 561,144

$ 597,553

(30,557)

(23,373)

(156,984)

(5,014)

291,521

463,587

Adjusted amounts under prior GAAP

894,344

965,411

Cash and cash equivalents

222,438

Restricted cash

4,377

Marketable securities, current

6,989

Accounts receivable, net

32,899

Prepaid expenses

46,922

Other current assets

14,530

Total current assets

328,155

Marketable securities, non-current

8,716

Property and equipment, net

80,519

Goodwill

234,480

Intangible assets, net

117,448

Note receivable from related party

8,571

66,089

Equity method investment

30,694

Total assets

874,672

14,300

68,550

51,765

Short-term debt

228,764

Lease financing obligation

363,379

10,006

Deferred tax liabilities

12,109

18,615

Redeemable noncontrolling interest

11,329

12,500

Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 195 shares issued and outstanding at September 30, 2018

176,160

Common stock, $0.0001 par value; 100,000 shares authorized, 49,817 and 52,024 shares issued; 42,655 and 46,965 outstanding at September 30, 2018 and December 31, 2017, respectively

Treasury stock, at cost (7,162 and 5,059 shares at September 30, 2018 and December 31, 2017, respectively)

(82,087)

Additional paid-in capital

561,144

(30,633)

(177,855)

270,574

Accounting Standards Update 2014-09 | Impacts of the New Revenue Standard

874,672

Accounts receivable, net

19,718

(415)

19,303

369

19,672

(14,756)

2,281

(12,475)

11,200

20,871

$ (10,100)

20,947

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ 19,672

[1]	See Note 5 -Investments in Affiliates and Related Transactions for related party transactions reflected in this account.

Basis of Presentation and Consolidation - Schedule of Income Statement Effect of New Accounting Pronouncements (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2018

Sep. 30, 2017

$ 83,286

$ 91,015

$ 243,737

$ 296,102

^[1]

43,714

45,576

127,788

139,386

18,684

20,926

59,789

67,234

27,320

34,881

99,368

103,049

Restructuring charges

4,539

2,312

8,425

11,715

23,658

23,459

70,330

71,098

117,915

127,154

365,700

392,482

(34,629)

(36,139)

(121,963)

(96,380)

203

3,274

7,518

9,157

(1,370)

(25,555)

(3,935)

(48,016)

(13,439)

(256)

(9,180)

2,374

283

645

1,626

(48,952)

(58,031)

(127,489)

(131,239)

2,308

12,825

1,604

17,973

(46,644)

(45,206)

(125,885)

(113,266)

Net (income) loss attributable to redeemable noncontrolling interests

(46,644)

(36,364)

(125,885)

(127,333)

(422)

1,276

2,122

6,980

Net loss from continued operations

(7,463)

(18,076)

$ (54,529)

$ (35,088)

$ (141,839)

$ (120,353)

Basic:

$ (1.38)

$ (0.98)

$ (3.51)

$ (2.38)

Diluted:

Weighted Average Number of Shares Outstanding, Basic [Abstract]

$ (1.38)

$ (0.98)

$ (3.51)

$ (2.38)

Weighted average common shares outstanding - basic (shares)

39,612

44,893

40,405

44,576

Weighted average common shares outstanding - diluted (shares)

39,612

44,893

40,405

44,576

Adjusted amounts under prior GAAP

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ 71,681

$ 211,866

43,465

127,175

18,684

59,789

27,269

99,216

Restructuring charges

4,539

8,425

23,658

70,330

117,615

364,935

(45,934)

(153,069)

203

7,518

(1,337)

(3,830)

(13,439)

(9,180)

283

(60,224)

(158,490)

2,308

1,604

(57,916)

(156,886)

Net (income) loss attributable to redeemable noncontrolling interests

(57,916)

(156,886)

(422)

2,122

Net loss from continued operations

(7,463)

(18,076)

$ (65,801)

$ (172,840)

Basic:

$ (1.66)

$ (4.28)

Diluted:

Weighted Average Number of Shares Outstanding, Basic [Abstract]

$ (1.66)

$ (4.28)

Weighted average common shares outstanding - basic (shares)

39,612

40,405

Weighted average common shares outstanding - diluted (shares)

39,612

40,405

Accounting Standards Update 2014-09 | Impacts of the New Revenue Standard

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ 11,605

$ 31,871

249

613

152

300

765

11,305

31,106

(33)

(105)

11,272

31,001

11,272

31,001

Net (income) loss attributable to redeemable noncontrolling interests

11,272

31,001

Net loss from continued operations

$ 11,272

$ 31,001

Basic:

$ 0.28

$ 0.77

Diluted:

Net Income (Loss) Available to Common Stockholders, Diluted [Abstract]

$ 0.28

$ 0.77

[1]	Cost of revenues excludes depreciation and amortization which are shown separately.

Basis of Presentation and Consolidation - Equity Impact (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net loss from continued operations	$ (54,529)	$ (35,088)	$ (141,839)	$ (120,353)
Retained Earnings at September 30, 2018	(156,984)		(156,984)		$ (5,014)
Accounting Standards Update 2014-09 \| Impacts of the New Revenue Standard
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cumulative catch up Topic 606 adjustment as of January 1, 2018			(10,130)
Net loss from continued operations	11,272		31,001
Retained Earnings at September 30, 2018	$ 20,871		$ 20,871		$ (10,100)

- Definition

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

+ References + Details

Acquisitions and Divestitures - Acquisitions (Details) - USD ($)		1 Months Ended	9 Months Ended
	Jan. 19, 2017	May 31, 2018	Sep. 30, 2018	Sep. 30, 2017
Honeybee Software
Acquisition
Total preliminary cash consideration transferred		$ 9,700,000
Additional consideration transferred		$ 8,700,000
Additional consideration transferred, period (in years)		3 years
Intangible assets acquired			$ 8,000,000
Net working capital			10,400,000
Goldman Sachs Bank USA \| 2017 Term Facility
Acquisition
Total preliminary consideration transferred	$ 815,000,000
Borrowing capacity	900,000,000.0
Proceeds from credit agreement	$ 900,000,000
Selling, general and administrative
Acquisition
Transaction costs			$ 1,900,000	$ 13,400,000

Acquisitions and Divestitures - Divestitures (Details) - USD ($)					3 Months Ended			9 Months Ended
	Feb. 15, 2018	Nov. 14, 2017	Oct. 17, 2017	Feb. 01, 2017	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Decrease in noncontrolling interest						$ 12,800,000
Increase to Additional Paid in Capital						$ 12,800,000
Contingent interest derivative										$ 193,000
Gain on divestiture					$ 0		$ 0	$ 0	$ 4,947,000
Divestiture of SpeechCycle
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Divestiture consideration				$ 13,500,000
Period of transition services agreement				1 year
Gain on divestiture				$ 4,900,000
Intralinks Holdings, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Payment of reimbursement fees	$ 5,000,000	$ 5,000,000
Intralinks Holdings, Inc. \| Impala
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration transferred, equity interests issued and issuable			$ 977,300,000
Total preliminary consideration transferred			1,000,000,000
Total preliminary cash consideration transferred		991,000,000
Potential cash proceeds		440,000,000
Maximum \| Intralinks Holdings, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contingent interest derivative		$ 25,000,000.0
Maximum \| Intralinks Holdings, Inc. \| Impala
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contingent interest derivative			$ 25,000,000.0

Fair Value Measurements of Assets and Liabilities - Hierarchy (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash, cash equivalents and restricted cash	$ 226,815,000	$ 246,125,000
Marketable securities-short term	6,989,000	3,111,000
Marketable securities-long term	8,716,000	0
Total assets	242,520,000	249,236,000
Liabilities
Contingent interest derivative		193,000
Mandatorily redeemable financial instrument		37,959,000
Total liabilities		38,152,000
Temporary equity
Redeemable noncontrolling interests	12,500,000	25,280,000
Total temporary equity	12,500,000	25,280,000
Transfers between Levels
Fair value of asset transfers between Levels 1, 2, and 3	0
Level 1
Assets
Cash, cash equivalents and restricted cash	226,815,000	246,125,000
Marketable securities-short term	0	0
Marketable securities-long term	0
Total assets	226,815,000	246,125,000
Liabilities
Contingent interest derivative		0
Mandatorily redeemable financial instrument		0
Total liabilities		0
Temporary equity
Redeemable noncontrolling interests	0	0
Total temporary equity	0	0
Level 2
Assets
Cash, cash equivalents and restricted cash	0	0
Marketable securities-short term	6,989,000	3,111,000
Marketable securities-long term	8,716,000
Total assets	15,705,000	3,111,000
Liabilities
Contingent interest derivative		0
Mandatorily redeemable financial instrument		0
Total liabilities		0
Temporary equity
Redeemable noncontrolling interests	0	0
Total temporary equity	0	0
Level 3
Assets
Cash, cash equivalents and restricted cash	0	0
Marketable securities-short term	0	0
Marketable securities-long term	0
Total assets	0	0
Liabilities
Contingent interest derivative		193,000
Mandatorily redeemable financial instrument		37,959,000
Total liabilities		38,152,000
Temporary equity
Redeemable noncontrolling interests	12,500,000	25,280,000
Total temporary equity	$ 12,500,000	$ 25,280,000

Fair Value Measurements of Assets and Liabilities - AFS Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Amortized Cost to Fair Value
Amortized Cost	$ 15,776	$ 3,117
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(72)	(6)
Fair Value	15,705	3,111
Corporate bonds
Amortized Cost to Fair Value
Amortized Cost	402
Gross Unrealized Gains	0
Gross Unrealized Losses	(3)
Fair Value	399
Municipal bonds
Amortized Cost to Fair Value
Amortized Cost	11,598	2,867
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(54)	(6)
Fair Value	11,545	2,861
Certificates of deposit
Amortized Cost to Fair Value
Amortized Cost	3,776	250
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(15)	0
Fair Value	$ 3,761	$ 250

Fair Value Measurements of Assets and Liabilities - AFS Securities in Unrealized Loss Position (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Securities in unrealized loss position (as of September 30, 2018, less than $14.8 million)	$ 14.8	$ 2.9

Fair Value Measurements of Assets and Liabilities - AFS Securities Expected Maturities (Details) $ in Thousands	Sep. 30, 2018 USD ($)
Amortized Cost
Due within one year	$ 7,006
Due after 1 year through 5 years	8,718
Due after 5 years through 10 years	52
Due after 10 years	0
Total available-for-sale debt securities	15,776
Fair Value
Due within one year	6,989
Due after 1 year through 5 years	8,664
Due after 5 years through 10 years	52
Due after 10 years	0
Total available-for-sale debt securities	$ 15,705

Fair Value Measurements of Assets and Liabilities - Level 3 Redeemable Noncontrolling Interests (Details) - Redeemable Noncontrolling Interests $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Changes in fair value of the Company’s Level 3 redeemable noncontrolling interests
Beginning Balance	$ 25,280
Fair value adjustment	(10,658)
Net loss attributable to redeemable noncontrolling interests	(2,122)
Ending Balance	$ 12,500

Investments in Affiliates and Related Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Equity method investment	$ 30,694		$ 30,694		$ 33,917
Equity method investment, ownership interest	30.00%		30.00%
Sequential Technology International, LLC \| BPO Divestiture
Schedule of Equity Method Investments [Line Items]
Duration of services agreement					3 years
STIH
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership interest	70.00%		70.00%
Discontinued Operations, Disposed of by Sale \| BPO Divestiture
Schedule of Equity Method Investments [Line Items]
Discontinued operation after disposal, revenue	$ 900	$ 1,000	$ 8,200	$ 1,900
Cloud Technology and Support \| Discontinued Operations, Disposed of by Sale \| BPO Divestiture
Schedule of Equity Method Investments [Line Items]
Discontinued operation after disposal, revenue	$ 6,400	$ 8,300	$ 12,800	$ 12,500

Investments in Affiliates and Related Transactions - Note Receivable (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Schedule of Equity Method Investments [Line Items]
Modification to liquidation preference	$ 24,000
Movement in Financing Receivable [Roll Forward]
Impairment, activity	(18,225)	$ 0	$ (18,225)	$ 0
Variable Interest Entity, Primary Beneficiary \| Sequential Technology International, LLC
Movement in Financing Receivable [Roll Forward]
Seller Note, beginning balance			83,000
Impairment, beginning balance			(14,562)
Unamortized Discount, beginning balance			(12,163)
Loan Accrued Interest, beginning balance			11,096
Distribution Note, beginning balance			6,187
Distribution interest, beginning balance			426
Total, beginning balance			73,984
Seller Note, activity			0
Impairment, activity			(18,225)
Unamortized Discount, activity			438
Loan Accrued Interest, activity			6,103
Distribution Note, activity			3,293
Distribution interest, activity			496
Total, activity			(7,895)
Seller Note, ending balance	83,000		83,000
Impairment, ending balance	(32,787)		(32,787)
Unamortized Discount, ending balance	(11,725)		(11,725)
Loan Accrued Interest, ending balance	17,199		17,199
Distribution Note, ending balance	9,480		9,480
Distribution interest, ending balance	922		922
Total, ending balance	66,089		66,089
Sequential Technology International Holdings, LLC \| Goldman Sachs Bank USA \| Discontinued Operations, Disposed of by Sale \| BPO Divestiture \| Indirect Guarantee of Indebtedness \| Sequential Technology International, LLC
Schedule of Equity Method Investments [Line Items]
Reduction in equity investment	$ 3,300		$ 3,300

Investments in Affiliates and Related Transactions - Equity Method Investment (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Balance Sheet
Restricted cash	$ 0	$ 0	$ 118
Accounts receivable	22,274	22,274	18,033
Total assets	22,274	22,274	18,151
Accrued expenses	0	0	118
Total liabilities	0	0	118
STI
Balance Sheet
Restricted cash	0	0	$ 118
Sequential Technology International, LLC
Income Statement
Revenues	33,119	94,758
Expenses	32,177	94,523
Net(loss) income	$ 942	$ 235

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Convertible Senior Notes	$ 230,000	$ 230,000
Unamortized debt issuance cost	(1,236)	(2,296)
Total long-term debt, carrying value	228,764	227,704
Total short-term debt, carrying value	228,764	0
Total long-term debt, carrying value	$ 0	$ 227,704

Debt - Convertible Senior Notes (Details) - USD ($)		3 Months Ended		9 Months Ended
Debt - Convertible Senior Notes (Details) - USD ($)	Aug. 12, 2014	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jun. 13, 2018	Dec. 31, 2017	Oct. 13, 2017
Debt Instrument [Line Items]
Principal amount		$ 230,000,000		$ 230,000,000			$ 230,000,000
Liability at fair value		0		0
2019 Notes
Debt Instrument [Line Items]
Convertible senior notes	$ 230,000,000.0	230,000,000		230,000,000
Interest rate, as a percent	0.75%
Principal amount	$ 230,000,000	228,800,000		$ 228,800,000
Debt issuance costs	$ 7,100,000
Conversion ratio	0.0188072			0.0188072
Conversion price	$ 53.17
Repurchase price, expressed as a percentage of principal of debt repurchased	100.00%
Interest expense on borrowings		$ 430,000	$ 431,000	$ 1,292,000	$ 1,294,000
Interest rate, effective percentage		1.37%		1.37%
Total debt, carrying value		$ 222,900,000		$ 222,900,000
Additional interest for non-compliance, percent				0.25%
Second additional interest for non-compliance, percent				0.50%
Debt default, percent of holders						25.00%		25.00%
Notice of holders of 2019 Notes threshold for acceleration of notes due (percent)		25.00%		25.00%

Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Debt - Interest Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Debt Instrument [Line Items]
Amortization of debt issuance costs			$ 1,060	$ 12,523
Non-cash interest on leased facility	$ 241	$ 243	724	729
Other	345	910	667	1,568
Interest Expense	1,370	25,555	3,935	48,016
2019 Notes
Debt Instrument [Line Items]
Amortization of debt issuance costs	354	354	1,060	1,060
Interest expense on borrowings	430	431	1,292	1,294
Additional interest on default	0	0	192	288
2017 Term Facility \| Goldman Sachs Bank USA
Debt Instrument [Line Items]
Amortization of debt issuance costs	0	1,021	0	2,376
Interest expense on borrowings	0	12,411	0	29,047
Contingent Interest Derivative	0	2,489	0	2,489
Amendment fees paid to third parties	0	5,716	0	5,716
Revolving Facility \| Goldman Sachs Bank USA
Debt Instrument [Line Items]
Amortization of debt issuance costs	0	204	0	542
Commitment fees	0	114	0	448
Amendment fees paid to third parties	0	1,662	0	1,662
Amended Credit Facility \| Credit Facility
Debt Instrument [Line Items]
Amortization of debt issuance costs	0	0	0	748
Commitment fees	0	0	0	25
Interest expense on borrowings	$ 0	$ 0	$ 0	$ 24

Accumulated Other Comprehensive Income/ (Loss) - Changes in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Changes in accumulated other comprehensive income (loss)
Beginning Balance			$ 463,587
Total comprehensive income	$ (1,619)	$ 5,556	(7,184)	$ 18,963
Ending Balance	291,521		291,521
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss)
Beginning Balance			(23,373)
Other comprehensive income			(7,464)
Tax effect			280
Total comprehensive income			(7,184)
Ending Balance	(30,557)		(30,557)
Foreign Currency Translation Adjustment
Changes in accumulated other comprehensive income (loss)
Beginning Balance			(20,284)
Other comprehensive income			(6,529)
Tax effect			0
Total comprehensive income			(6,529)
Ending Balance	(26,813)		(26,813)
Unrealized (Loss) Income on Intra-Entity Foreign Currency Transactions
Changes in accumulated other comprehensive income (loss)
Beginning Balance			(3,085)
Other comprehensive income			(883)
Tax effect			280
Total comprehensive income			(603)
Ending Balance	(3,688)		(3,688)
Unrealized Holding Gains (Losses) on Available-for-Sale Securities
Changes in accumulated other comprehensive income (loss)
Beginning Balance			(4)
Other comprehensive income			(52)
Tax effect			0
Total comprehensive income			(52)
Ending Balance	$ (56)		$ (56)

Stockholders' Equity - Narrative (Details)			9 Months Ended
Stockholders' Equity - Narrative (Details)	Feb. 15, 2018 USD ($) director member vote registration $ / shares shares	Nov. 14, 2017 USD ($)	Sep. 30, 2018 USD ($) vote $ / shares shares	Dec. 31, 2017 $ / shares shares
Class of Stock [Line Items]
Dividends \| $			$ 0
Preferred stock, shares outstanding (shares)			195,000	0
Preferred stock, shares issued (shares)			195,000	0
Preferred stock, par value (in dollars per share) \| $ / shares			$ 0.0001	$ 0.0001
Dividend rate, percentage	14.50%
Convertible preferred stock, conversion price per share \| $ / shares	$ 18.00
Number of elected directors \| director	4
Number of board of director members \| director	10
Number of board of director members elected by preferred stock holders \| director	2
Number of board of directors agreed upon to be elected meeting independence criteria \| director	4
Number of board of directors elected meeting independence criteria \| director	2
Minimum number of board of director members that preferred stock holders can appoint pursuant to certification \| director	1
Maximum ownership threshold allowed for director election rights, percent	30.00%
Demand registrations allowed under agreement \| registration	3
Demand registrations allowed under agreement annually \| registration	2
Demand registration, minimum percentage of shares	10.00%
Common Stock
Class of Stock [Line Items]
Number of votes per share (vote) \| vote			1
Series A Preferred Stock
Class of Stock [Line Items]
Number of votes per share (vote) \| vote	1
Preferred stock, shares outstanding (shares)			195,181
Preferred stock, shares issued (shares)	185,000
Preferred stock, dividends (shares)			10,181
Preferred stock, liquidation preference \| $			$ 323,500,000
Preferred stock, redemption amount \| $			$ 251,900,000
Intralinks Holdings, Inc.
Class of Stock [Line Items]
Payment of reimbursement fees \| $	$ 5,000,000	$ 5,000,000
Ten Percent or Greater Ownership
Class of Stock [Line Items]
Number of elected directors \| member	2
Preferred stock, ownership percentage	10.00%
Greater than Five and Less than Ten Percent Ownership
Class of Stock [Line Items]
Number of elected directors \| member	1
Minimum \| Greater than Five and Less than Ten Percent Ownership
Class of Stock [Line Items]
Preferred stock, ownership percentage	5.00%
Maximum \| Greater than Five and Less than Ten Percent Ownership
Class of Stock [Line Items]
Preferred stock, ownership percentage	10.00%
Silver Private Holdings I, LLC
Class of Stock [Line Items]
Preferred stock, shares issued (shares)	185,000
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.0001
Preferred stock, liquidation preference (dollars per share) \| $ / shares	$ 1,000
Consideration received on transaction \| $	$ 97,700,000
Number of shares repurchased under program (shares)			5,994,667
Fair value, approval threshold \| $	10,000,000
Fair market value of transaction, individual \| $	5,000,000
Fair market value of transaction, aggregate \| $	10,000,000
Capital expenditure threshold \| $	$ 25,000,000
Percentage ownership after conversion	19.90%
Voting percentage threshold of ownership	19.99%
Minimum number of board of director members that preferred stock holders can appoint pursuant to certification \| director	2
Chief Executive Officer
Class of Stock [Line Items]
Number of elected directors \| director	1
Board of Directors Chairman
Class of Stock [Line Items]
Number of elected directors \| director	1
Series A Preferred Stock
Class of Stock [Line Items]
Conversion ratio			0.0555556
Equity Incentive Plan 2015
Class of Stock [Line Items]
Shares available for grant			0
Liability, accrued expenses, non-vested \| $			$ 700,000
New Hire Equity Incentive Plan 2017
Class of Stock [Line Items]
Shares available for grant			600,000
Restricted stock awards
Class of Stock [Line Items]
Granted (in shares)			1,801,000
Vested (in shares)			(738,000)
Restricted stock awards \| Equity Incentive Plan 2015
Class of Stock [Line Items]
Granted (in shares)			600,000
Vested (in shares)			0

Stockholders' Equity - Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based compensation expense
Total stock-based compensation expense	$ 7,216	$ 3,678	$ 22,040	$ 14,427
Total stock-based compensation before taxes	7,216	3,678	22,040	14,427
Tax benefit	1,402	973	4,356	2,686
Stock-based compensation cost related to non-vested equity awards not yet recognized as an expense	$ 48,100		48,100
Weighted-average period over which stock-based compensation cost related to non-vested equity awards is expected to be recognized	2 years 5 months 1 day
Employee Stock Purchase Plan
Share-based compensation expense
Total stock-based compensation expense	$ 0	52	0	382
Stock options
Share-based compensation expense
Total stock-based compensation expense	1,940	1,534	5,680	4,522
Restricted stock awards
Share-based compensation expense
Total stock-based compensation expense	5,276	2,092	16,360	9,523
Cost of revenues
Share-based compensation expense
Total stock-based compensation expense	1,035	1,118	3,447	3,326
Research and development
Share-based compensation expense
Total stock-based compensation expense	1,340	1,201	4,682	4,181
Selling, general and administrative
Share-based compensation expense
Total stock-based compensation expense	$ 4,841	$ 1,359	$ 13,911	$ 6,920

Stockholders’ Equity - Black-Scholes Assumptions (Details) - Stock options - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Weighted-average assumptions
Expected stock price volatility	66.00%	0.00%	65.20%	49.20%
Risk-free interest rate	2.70%	0.00%	2.60%	1.70%
Expected life of options (in years)	4 years 3 months 15 days	0 days	4 years 1 month 10 days	4 years 11 days
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Weighted-average fair value (grant date) of the options (in dollars per share)	$ 3.33	$ 0.00	$ 5.04	$ 7.79

Stockholders' Equity - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Number of Options
Options outstanding at the beginning of the period (in shares)			3,950
Options Granted (in shares)			1,065
Options Exercised (in shares)			0
Options Cancelled (in shares)			(464)
Options outstanding at the end of the period (in shares)	4,551		4,551
Vested or expected to vest (in shares)	1,449		1,449
Exercisable (in shares)	1,449		1,449
Weighted-Average Exercise Price
Balance at the beginning of the period (in dollars per share)			$ 21.54
Options Granted (in dollars per share)			9.75
Options Exercised (in dollars per share)			0.00
Options Cancelled (in dollars per share)			21.81
Balance at the end of the period (in dollars per share)	$ 18.75		18.75
Vested or expected to vest (in dollars per share)	31.04		31.04
Exercisable (in dollars per share)	$ 31.04		$ 31.04
Weighted-Average Remaining Contractual Term (Years)
Outstanding			5 years 1 month 6 days
Vested or expected to vest			3 years 2 months 23 days
Exercisable			3 years 2 months 23 days
Aggregate Intrinsic Value
Outstanding	$ 56		$ 56
Vested or expected to vest	0		0
Exercisable	0		0
Additional disclosures related to stock options
Total intrinsic value for stock options exercised	$ 0	$ 0	$ 0	$ 1,000

Stockholders' Equity - Restricted Stock (Details) - Restricted stock awards shares in Thousands	9 Months Ended
	Sep. 30, 2018 $ / shares shares
Number of Awards
Non-vested at the beginning of the period (in shares) \| shares	2,064
Granted (in shares) \| shares	1,801
Vested (in shares) \| shares	(738)
Forfeited (in shares) \| shares	(211)
Non-vested at the end of the period (in shares) \| shares	2,916
Weighted-Average Grant Date Fair Value
Non-vested at the beginning of the period (in dollars per share) \| $ / shares	$ 22.75
Granted (in dollars per share) \| $ / shares	9.15
Vested (in dollars per share) \| $ / shares	26.75
Forfeited (in dollars per share) \| $ / shares	17.52
Non-vested at the end of the period (in dollars per share) \| $ / shares	$ 13.74

Stockholders' Equity - Treasury Stock (Details) - 2016 Share Repurchase Program	9 Months Ended
	Sep. 30, 2018 shares
Treasury Stock
Number of shares repurchased under program (shares)	0
Shares retired	3,900,000

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Restructuring (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Restructuring accrual and changes
Charges	$ 4,539	$ 2,312	$ 8,425	$ 11,715
Accrued expenses
Restructuring accrual and changes
Balance at December 31, 2017			498
Charges			8,425
Payments			(6,519)
Other adjustments			1,959
Balance at September 30, 2018	4,363		4,363
Employment termination costs \| Accrued expenses
Restructuring accrual and changes
Balance at December 31, 2017			474
Charges			8,003
Payments			(6,505)
Other adjustments			(38)
Balance at September 30, 2018	1,934		1,934
Facilities consolidation \| Accrued expenses
Restructuring accrual and changes
Balance at December 31, 2017			24
Charges			422
Payments			(14)
Other adjustments			1,997
Balance at September 30, 2018	$ 2,429		$ 2,429

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ (2,308,000)	$ (12,825,000)	$ (1,604,000)	$ (17,973,000)
Effective income tax rate, percent			1.30%
Change in valuation allowance			$ 0

Earnings per Common Share (Details)
$ / shares in Units, $ in Thousands

3 Months Ended

9 Months Ended

Aug. 12, 2014

Sep. 30, 2018

USD ($)

$ / shares

Sep. 30, 2017

USD ($)

$ / shares

Sep. 30, 2018

USD ($)

$ / shares

Sep. 30, 2017

USD ($)

$ / shares

Net loss from continuing operations | $

$ (46,644)

$ (45,206)

$ (125,885)

$ (113,266)

Net (income) loss attributable to redeemable noncontrolling interests | $

(422)

1,276

2,122

6,980

Preferred stock dividend | $

(7,463)

(18,076)

Net (loss) income from continuing operations attributable to Synchronoss | $

(54,529)

(43,930)

(141,839)

(106,286)

Income from discontinued operations, net of taxes | $

^[1]

8,842

^[2]

(14,067)

^[2]

Income effect for interest on convertible debt, net of tax | $

Net loss from continuing operations adjusted for the convertible debt | $

(54,529)

(43,930)

(141,839)

(106,286)

Net loss attributable to Synchronoss | $

$ (54,529)

$ (35,088)

$ (141,839)

$ (120,353)

Weighted-average common shares outstanding:

Weighted average common shares outstanding - basic (shares)

39,612,000

44,893,000

40,405,000

44,576,000

Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]

Shares from assumed conversion of convertible debt (shares)

Shares from assumed conversion of preferred stock (shares)

Options and unvested restricted shares (shares)

Weighted average common shares outstanding - diluted (shares)

39,612,000

44,893,000

40,405,000

44,576,000

Basic:

Continuing operations (usd per share) | $ / shares

$ (1.38)

$ (0.98)

$ (3.51)

$ (2.38)

Discontinued operations (usd per share) | $ / shares

^[1]

0.00

0.20

0.00

(0.32)

Basic (usd per share) | $ / shares

(1.38)

(0.78)

(3.51)

(2.70)

Diluted:

Continuing operations (usd per share) | $ / shares

(1.38)

(0.98)

(3.51)

(2.38)

Discontinued operations (usd per share) | $ / shares

^[1]

0.00

0.20

0.00

(0.32)

Diluted (usd per share) | $ / shares

$ (1.38)

$ (0.78)

$ (3.51)

$ (2.70)

2019 Notes

Diluted:

Conversion ratio

0.0188072

Restricted stock awards

Diluted:

Convertible Debt Securities

2,916,000

3,259,000

2,916,000

3,259,000

Diluted:

4,325,646

Employee Stock Option

Diluted:

4,647,000

3,012,000

4,412,000

2,655,000

Series A Preferred Stock

Diluted: