View Filing Data

Cash and cash equivalents

$ 103,771,000

$ 156,299,000

Restricted cash

^[1]

6,089,000

89,826,000

Marketable securities, current

28,230,000

3,111,000

Accounts receivable, net of allowances of $4,599 and $3,107 at December 31, 2018 and December 31, 2017, respectively

^[1]

102,798,000

78,186,000

Prepaid expenses

45,058,000

33,957,000

Other current assets

8,508,000

9,600,000

Total current assets

294,454,000

370,979,000

Marketable securities, non-current

6,658,000

Property and equipment, net

67,937,000

111,825,000

224,899,000

237,303,000

Intangible assets, net

98,706,000

132,167,000

Note receivable from related party

8,982,000

5,236,000

^[1]

73,984,000

Equity method investment

1,619,000

33,917,000

Total assets

703,255,000

965,411,000

13,576,000

5,959,000

59,545,000

72,739,000

Short-term convertible debt, net of debt issuance costs

57,101,000

75,829,000

113,542,000

Mandatorily redeemable financial instrument

37,959,000

Lease financing obligation

243,764,000

192,486,000

9,494,000

11,183,000

Long-term convertible debt, net of debt issuance costs

227,704,000

Deferred tax liabilities

1,347,000

13,735,000

59,841,000

25,241,000

Commitments and contingencies

10,797,000

6,195,000

Redeemable noncontrolling interest

12,500,000

25,280,000

Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 195 shares issued and outstanding at December 31, 2018

176,603,000

Common stock, $0.0001 par value; 100,000 shares authorized, 49,836 and 52,024 shares issued; 42,674 and 46,965 outstanding at December 31, 2018 and December 31, 2017, respectively

5,000

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

(82,087,000)

(105,584,000)

Additional paid-in capital

534,673,000

597,553,000

(30,383,000)

(23,373,000)

(233,299,000)

(5,014,000)

188,909,000

463,587,000

$ 703,255,000

$ 965,411,000

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

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 4,599	$ 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 (in shares)	49,836,000	52,024,000
Common stock, shares outstanding (shares)	42,674,000	46,965,000
Treasury stock, shares (shares)	7,162,000	5,059,000

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

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Income Statement [Abstract]

$ 325,839

$ 402,361

$ 426,294

^[1]

158,802

181,453

194,684

79,172

90,850

114,493

Net change in contingent consideration obligation

122,112

154,037

126,228

1,194

12,375

10,739

6,333

117,654

94,884

105,966

490,115

531,963

548,898

(164,276)

(129,602)

(122,604)

7,770

12,502

1,907

(4,911)

(55,771)

(7,414)

Other (expense) income, net

1,760

(29,413)

(74,917)

(17,678)

1,022

(28,600)

(9,125)

(263,174)

(229,087)

(127,089)

17,894

34,863

33,220

Net loss from discontinued operations, net of tax

(245,280)

(194,224)

(93,869)

^[2]

18,288

75,495

90,560

Net loss attributable to redeemable noncontrolling interests

(226,992)

(118,729)

(3,309)

8,837

9,291

15,203

(25,593)

$ (243,748)

$ (109,438)

$ 11,894

Basic:

$ (6.51)

$ (4.14)

$ (1.81)

^[2]

0.46

1.69

2.08

(6.05)

(2.45)

0.27

Diluted:

(6.51)

(4.14)

(1.81)

^[2]

0.46

1.69

2.08

$ (6.05)

$ (2.45)

$ 0.27

Basic (in shares)

40,277

44,669

43,551

Diluted (in shares)

40,277

44,669

43,551

[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.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (226,992)	$ (118,729)	$ (3,309)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(6,152)	17,027	(4,114)
Unrealized (loss) gain on available for sale securities	(37)	18	3
Net (loss) income on intra-entity foreign currency transactions	(821)	1,932	(725)
Total other comprehensive (loss) income	(7,010)	18,977	(4,836)
Comprehensive loss	(234,002)	(99,752)	(8,145)
Comprehensive loss attributable to redeemable noncontrolling interests	8,837	9,291	15,203
Comprehensive (loss) income attributable to Synchronoss	$ (225,165)	$ (90,461)	$ 7,058

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning balance at Dec. 31, 2015	$ 505,329	$ 4	$ (68,327)	$ 514,964	$ (37,514)	$ 96,202
Beginning balance (in shares) at Dec. 31, 2015		48,287	3,892
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	33,361			33,361
Issuance of restricted stock (in shares)		585
Issuance of common stock on exercise of options	13,913	$ 1		13,912
Issuance of common stock on exercise of options (in shares)		608
ESPP compensation	817			817
Issuance of common stock related to acquisition	22,000			22,000
Issuance of common stock related to acquisition (in shares)		840
Issuance of common stock to a subsidiary (in shares)		20
Issuance of common stock to employee stock purchase plan	955			955
Issuance of common stock to employee stock purchase plan (in shares)		48
Repurchase of treasury shares	(40,025)		$ (40,025)
Repurchase of treasury shares (in shares)			(1,262)
Sale of treasury stock in connection with an employee stock purchase plan	1,228		$ 1,721	(493)
Sale of treasury stock in connection with an employee stock purchase plan (in shares)			58
Other	130			130
Adjustments to redemption value of noncontrolling interest	(15,203)			(15,203)
Net (loss) income attributable to Synchronoss	11,894					11,894
Total other comprehensive income (loss)	(4,836)				(4,836)
Ending balance at Dec. 31, 2016	529,797	$ 5	$ (106,631)	571,153	(42,350)	107,620
Ending balance (in shares) at Dec. 31, 2016		50,388	5,096
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	28,446			28,446
Issuance of restricted stock (in shares)		1,565
Issuance of common stock on exercise of options	2,460			2,460
Issuance of common stock on exercise of options (in shares)		104
ESPP compensation	495			495
Sale of treasury stock in connection with an employee stock purchase plan	1,047		$ 1,047
Sale of treasury stock in connection with an employee stock purchase plan (in shares)			36
Shares withheld for taxes in connection with issuance of restricted stock	$ (442)			(442)
Shares withheld for taxes in connection with issuance of restricted stock (in shares)	(29)
Fair value of awards assumed on acquisition	$ 4,701			4,701
Other	31			31
Adjustments to redemption value of noncontrolling interest	(9,291)			(9,291)
Net (loss) income attributable to Synchronoss	(109,438)					(109,438)
Total other comprehensive income (loss)	18,977				18,977
Ending balance at Dec. 31, 2017	$ 463,587	$ 5	$ (105,584)	597,553	(23,373)	(5,014)
Ending balance (in shares) at Dec. 31, 2017	52,024	52,028	5,060
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	$ 27,201			27,201
Issuance of restricted stock (in shares)		1,707
Preferred stock dividends	(24,331)			(24,331)
Amortization of preferred stock issuance costs	(1,262)			(1,262)
Retirement of treasury stock	$ 0		$ 68,327	(68,327)
Retirement of treasury stock (in shares)	(3,900)	(3,893)	(3,893)
Issuance of common stock on exercise of options (in shares)	0
Shares withheld for taxes in connection with issuance of restricted stock	$ (76)			(76)
Treasury shares received in connection with PIPE Purchase Agreement	(44,830)		$ (44,830)
Treasury shares received in connection with PIPE Purchase Agreement (in shares)			(5,995)
Shares withheld for taxes in connection with issuance of restricted stock (in shares)		6
Other	(28)			(28)
Net loss attributable to Synchronoss	(218,155)					(218,155)
Adjustments to redemption value of noncontrolling interest	3,943			3,943
Net (loss) income attributable to Synchronoss	(243,748)
Total other comprehensive income (loss)	(7,059)				(7,059)
Ending balance at Dec. 31, 2018	$ 188,909	$ 5	$ (82,087)	$ 534,673	$ (30,383)	$ (233,299)
Ending balance (in shares) at Dec. 31, 2018	49,836	49,836	7,162

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

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Operating activities:

Net income from discontinued operations

$ (245,280)

$ (194,224)

$ (93,869)

^[1]

75,495

90,560

Gain (loss) on sale of discontinued operations, net of tax

18,288

(122,842)

(113,129)

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

Depreciation and amortization expense

97,092

93,924

94,911

Goodwill impairment

9,100

Impairment of long-lived assets and capitalized software

11,462

960

11,055

Change in fair value of financial instruments

(3,849)

4,367

Amortization of debt issuance costs

1,294

12,771

1,607

(Gain) loss on extinguishment of debt

(1,760)

29,413

Accrued PIK interest

^[2]

(7,037)

(12,090)

(34)

Allowance for loan losses

^[2]

84,314

14,562

(Earnings) loss from equity method investments

^[2]

28,600

9,125

Loss (Gain) on disposals

277

(4,947)

(122)

Discontinued operations non-cash and working capital adjustments

^[1]

48,647

371

Amortization of bond premium

107

244

1,416

Deferred income taxes

(12,350)

19,243

17,148

Non-cash interest on leased facility

1,203

1,392

Stock-based compensation

27,604

22,495

34,178

Contingent consideration obligation

(2,711)

1,194

Changes in operating assets and liabilities:

Accounts receivable, net of allowance for doubtful accounts

(21,521)

29,283

(13,650)

Prepaid expenses and other current assets

(5,315)

(5,513)

31,648

973

3,237

8,880

6,846

(9,098)

(10,089)

(18,068)

(4,949)

(7,523)

Net cash used in operating activities

(4,675)

(3,337)

(6,558)

Deferred revenues

2,529

(23,506)

55,173

(31,369)

(18,248)

104,559

Investing activities:

Purchases of fixed assets

(11,656)

(12,151)

(42,570)

Purchases of intangible assets and capitalized software

(14,372)

(9,119)

(7,677)

Proceeds from the sale of SpeechCycle

13,500

Purchases of marketable securities available for sale

(36,789)

(219)

(13,445)

Maturity of marketable securities available for sale

4,865

12,371

82,904

Proceeds from the sale of discontinued operations

928,171

27,335

Equity investment distributions

404

608

Investing in discontinued operations

^[1]

(13,721)

Investment in note receivable

(6,187)

Business acquired, net of cash

(9,734)

(815,008)

(86,322)

Net cash used in investing activities

(67,282)

98,245

(39,775)

Proceeds from the exercise of stock options

2,584

13,633

Taxes paid on withholding shares

(442)

Payments on contingent consideration

(122)

Extinguishment of outstanding Convertible Senior Notes

(113,696)

Proceeds from issuance of long-term debt

900,000

Repayment of long-term debt

(900,000)

Borrowings on revolving line of credit

144,000

Repayment of revolving line of credit

(29,000)

(115,000)

Excess tax benefits from stock option exercises

Repurchase of common stock

(40,025)

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

1,047

2,183

Proceeds from issuance of preferred stock

86,220

Preferred dividend payment

(7,075)

Proceeds from mandatorily redeemable financial instruments

33,592

Payments on capital obligations

(1,334)

(2,985)

(3,815)

Net cash provided by financing activities

(35,885)

(35,664)

(370)

Effect of exchange rate changes on cash

(1,729)

(9,641)

(853)

Net decrease in cash, restricted cash and cash equivalents

(136,265)

34,692

63,561

Cash, restricted cash and cash equivalents, beginning of period

246,125

211,433

147,872

Cash, restricted cash and cash equivalents, end of period

109,860

246,125

211,433

Supplemental disclosures of cash flow information:

Cash paid for income taxes

22,549

7,612

4,661

Cash paid for interest

3,258

55,957

6,981

Supplemental disclosures of non-cash investing and financing activities:

Accrued dividends on Series A Convertible Participating Perpetual Preferred Stock

7,075

Total cash, cash equivalents and restricted cash

Total cash, cash equivalents and restricted cash

246,125

211,433

147,872

Revolving Facility

Payments of debt issuance costs

(3,692)

(1,346)

Amendment

Payments of debt issuance costs

(16,776)

Long-term Debt

Payments of debt issuance costs

$ 0

$ (19,887)

$ 0

Openwave

Supplemental disclosures of non-cash investing and financing activities:

Issuance of common stock in connection with acquisition

22,000

Intralinks Holdings, Inc.

Supplemental disclosures of non-cash investing and financing activities:

Issuance of common stock in connection with acquisition

4,700

[1]	See Note 3. Acquisitions and Divestitures for transactions classified as discontinued operations.
[2]	See Note 5. Investments in Affiliates and Related Transactions for related party transactions reflected in this account.

Description of Business

12 Months Ended

Dec. 31, 2018

Description of Business

Description of Business

1. Description of Business

General

Synchronoss Technologies, Inc. (“Synchronoss” or the “Company”) Digital, Cloud, Messaging and IoT platforms help the world’s leading companies, including operators, original equipment manufacturers (“OEMs”), Media and Technology providers deliver continuously transformative customer experiences that create high value engagement and new monetization opportunities.

The Company currently operates in and markets solutions and services directly through the Company’s sales organizations in North America, Europe and Asia-Pacific. The Company’s platforms give customers new opportunities in the Telecommunications, Media and Technology (“TMT”) space, taking advantage of the rapidly converging services, connected devices, networks and applications.

The Company delivers platforms, products and solutions including:


•	Digital experience management (Platform as a Service) - including digital journey creation, and journey design products that use analytics that power digital advisor products for IT and Business Channel Owners


•	Cloud sync, backup, storage, device set up, content transfer and content engagement for user generated content


•	Advanced, multi-channel messaging peer-to-peer (“P2P”) communications and application-to-person (“A2P”) commerce solutions


•	IoT management technology for Smart Cities, Smart Buildings, Automotive and more

The Company’s platforms are designed and built to be Operator-grade, secure, flexible and scalable and easy to deploy and use - enabling multiple converged communications, commerce and applications and devices - deployed across multiple distribution channels including e-commerce, m-commerce, telesales, retail stores, care and call centers, self-service, indirect and other outlets.

The Synchronoss Digital Experience Platform (“DXP”) is a purpose-built experience management toolset that sits between the customers’ end-user facing applications and their existing back end systems, enabling the authoring and management of customer journeys in a cloud-native no/low-code environment. This platform uses products such as Journey Creator, Journey Advisor, CX Baseline and Digital Coach to create a wide variety of insight-driven customer experiences across existing channels (digital and analogue) including creating the ability to pause and resume continuous, intelligent experiences in an Omni-channel environment. DXP can be operated by IT professionals and “citizen developers (business analysts, etc.) enabling the Company’s customers to bring more compelling and complex experiences to market in less time with fewer and more diverse resources in a real-time, collaborative environment.

The Synchronoss Personal Cloud Platform™ is a secure and highly scalable white label platform designed to store and sync subscriber’s personally created content seamlessly to and from current and new devices. This allows carrier’s customers to protect, engage with and manage their personal content and gives the Company’s Operator customers the ability to increase ARPU through a new monthly recurring charge (“MRC”) and opportunities to mine valuable data that will give subscribers accesses to new, beneficial services. Additionally, the Company’s Personal Cloud Platform performs and expanding set of value-add services including facilitating an Operator’s initial device setup and enhancing visibility and control across disparate devices within subscribers’ smart homes.

The Synchronoss Messaging Platform powers hundreds of millions of subscribers’ mail boxes worldwide. The Company’s Advanced Messaging Product is a powerful, secure and intelligent white label messaging platform that expands capabilities for Operators and TMT companies to offer P2P messaging via Rich Communications Services (“RCS”). Additionally, the Company’s Advanced Messaging Product powers commerce and a robust ecosystem for Operators, brands and advertisers to execute Application to Person (“A2P”) commerce and data-rich dialogue with subscribers.

The Synchronoss IoT Platform creates an easy to use environment and extensible ecosystem making the management of disparate devices, sensors, data pools and networks easier to manage by IoT administrators and drives the propagation of new IoT applications and monetization models for TMT companies. The Company’s IoT platform utilizes Synchronoss platforms (DXP, Cloud, Messaging), products and solutions to make IoT more accessible and actionable for Smart Building facility managers, Smart City planners, Automotive OEMs and TMT ecosystem players.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

The 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.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Revenue Recognition and Deferred Revenue

The Company generates revenue from the delivery of a range of products, solutions and services principally on a transactional or subscription basis (“SaaS”) or in the form of Professional Services or Software Licenses. Revenues are recognized when persuasive evidence of an arrangement exists, delivery has occurred, fees are fixed or determinable and collection is considered probable.

Transactional and Subscription Service Arrangements: Transaction and subscription 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. Transaction service arrangements include services such as processing equipment orders, new account set-up and activation, number port requests, credit checks and inventory management. Subscription services include monthly active user fees, SaaS fees, hosting and storage and the related maintenance support for those services.

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. The total amount of revenue recognized is based primarily on the volume of transactions. Subscription revenues are recorded one of two ways: on a straight-line basis over the life of the contract or on a fixed monthly fee based on a set contracted amount.

Many of the Company’s contracts guarantee minimum volume transactions from the customer. In these instances, if the customer’s total transaction volume for the period is less than the contractual amount, the Company record revenues at the minimum guaranteed amount. Set-up fees for transactional service arrangements are deferred and recognized on a straight-line basis over the life of the contract since these amounts would not have been paid by the customer without the related transactional service arrangement. Revenues are presented net of discounts, which are volume level driven, or credits, which are performance driven, and are determined in the period in which the volume thresholds are met, or the services are provided.

Professional Service and Software License Arrangements: Professional services include process and workflow consulting services and development services. Professional services when sold with transactional or subscription service arrangements are accounted for separately when the professional services have value to the customer on a standalone basis and there is objective and reliable evidence of fair value of the professional services. When accounted for separately, professional service revenues are recognized as services are performed and all other elements of revenue recognition have been satisfied.

In determining whether professional service revenues can be accounted for separately from transaction or subscription service revenues, the Company considers the following factors for each professional services agreement: availability of the professional services from other vendors, whether objective and reliable evidence of fair value exists of the undelivered elements, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the transaction or subscription service start date and the contractual independence of the transactional or subscription service from the professional services.

If a professional service arrangement were not to qualify for separate accounting, the Company would recognize the professional service revenues ratably over the remaining term of the transaction or subscription agreement.

Multiple Element Arrangements: Revenue from software license arrangements is recognized when the license is delivered to the customers and all of the software revenue recognition criteria are met. When software arrangements include multiple elements, the arrangement consideration is allocated at the inception to all deliverables using the residual method provided the Company has vendor specific objective evidence (“VSOE”) on all undelivered elements. The Company determines VSOE for each element based on historical stand-alone sales to third-parties.

When transaction or subscription service arrangements, include multiple elements, the arrangement consideration is allocated at the inception of an arrangement to all deliverables using the relative selling price method. The relative selling price method allocates any discount in the arrangement proportionally to each deliverable on the basis of each deliverable’s selling price. The selling price used for each deliverable will be based on VSOE if available, third-party evidence (“TPE”) if vendor- specific objective evidence is not available or estimated selling price (“ESP”) if neither vendor-specific objective evidence nor third-party evidence is available. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The Company determines ESP by considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and pricing practices. ESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings.

While specific and detailed rules and guidelines related to revenue recognition are followed, the Company makes and uses management judgments and estimates in connection with the revenue recognized in any reporting period, particularly in the areas described above, as well as collectability. If management made different estimates or judgments, differences in the timing of the recognition of revenue could occur.

Deferred Revenue

Deferred revenues represent billings to customers for services in advance of the performance of services, with revenues recognized as the services are rendered, and also include the fair value of deferred revenues recorded as a result of acquisitions.

Service Level Standards

Pursuant to certain contracts, the Company is subject to service level standards and to corresponding penalties for failure to meet those standards. All performance-related penalties are reflected as a corresponding reduction of the Company’s revenues. These penalties, if applicable, are recorded in the month incurred and were insignificant for the years ended December 31, 2018, 2017 and 2016, respectively.

Cost of Revenues

Cost of services includes all direct materials, direct labor and those indirect costs related to revenues such as indirect labor, materials and supplies and facilities cost, exclusive of depreciation expense.

Research and Development

Software development costs are accounted for in accordance with either ASC 985-20, “Software - Costs of Software to be Sold, Leased or Marketed,” or ASC 350-40, “Internal-Use Software.” Costs associated with the planning and designing phase of software development are classified as research and development costs and are expensed as incurred. The amounts capitalized include external direct costs of services used in developing internal-use software, employee compensation and related expenses of personnel directly associated with the development activities. Once technological feasibility has been determined, a portion of the costs incurred in development, including coding, testing and quality assurance, are capitalized until available for general release to clients.

Amortization is calculated on a solution-by-solution basis and is recognized over the estimated economic life of the software, typically ranging two to three years. Amortization begins when the software is substantially completed for its intended use. Costs incurred during the preliminary and post-implementation stages are expensed as incurred. The amounts capitalized include external direct costs of services used in developing internal-use software, employee compensation and related expenses of personnel directly associated with the development activities. Software development costs are evaluated for recoverability whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Unrecoverable costs are reviewed annually and recognized in the period they become unrecoverable, as needed, and are recorded in the Consolidated Statements of Operations as depreciation and amortization expense.

The unamortized software development costs and amortization expense were as follows:



	Year ended December 31,
	2018		2017		2016
Unamortized software development costs	$	17,490	$	11,695	$	5,754
Software development amortization expense	8,123		3,178		3,507

The Company recognized impairment charges to its capitalized software intangible assets, of $0.5 million, $1.0 million, and $11.1 million for the years ended December 31, 2018, 2017 and 2016, respectively. The Company includes these impairments within the depreciation and amortization in its Consolidated Statements of Operations.

Concentration of Credit Risk

The Company’s financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. The Company maintains its cash and cash equivalents at several major financial institutions. The Company has not experienced any realized losses in such accounts and believes it is not exposed to any significant credit risk related to cash, cash equivalents and securities. The Company’s cash equivalents and short-term marketable securities consist primarily of money market funds, certificates of deposit, commercial paper, and municipal and corporate bonds. The Company believes that concentration of credit risk with respect to accounts receivable is limited because of the creditworthiness of its major customers.

The Company’s top five customers accounted for 69%, 73% and 74% of net revenues for the years ended December 31, 2018, 2017 and 2016, respectively. Contracts with these customers typically run for three to five years. Of these customers, Verizon accounted for more than 10% of the Company’s revenues in 2018.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents.

Restricted Cash

Restricted cash includes amounts to various deposits, escrows and other cash collateral that are restricted by contractual obligation. During the year ended December 31, 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.

Accounts Receivable

Accounts receivable include current notes, amounts billed to customers, claims, and unbilled revenue, which consists of amounts recognized as sales but not yet billed. Substantially all amounts of unbilled receivables are expected to be billed and collected in the subsequent year. The Company had unbilled receivable balances of $4.5 million and $7.4 million as of December 31, 2018 and December 31, 2017, respectively.

Fair Value of Financial Instruments and Liabilities

The Company includes disclosures of fair value information about financial instruments and liabilities, whether or not recognized on the Consolidated Balance Sheets, for which it is practicable to estimate that value. Due to their short-term nature, the carrying amounts reported in the financial statements approximate the fair value for cash and cash equivalents, marketable securities, accounts receivable and accounts payable.

Derivatives

The Company evaluates convertible instruments, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under Accounting Standards Codification (“ASC”) Topic 815, "Derivatives and Hedging." The result of this accounting treatment is that the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the Consolidated Statements of Operations as other income (expense). Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815 are reclassified to liabilities at the fair value of the instrument on the reclassification date.

Allowance for Doubtful Accounts

The Company maintains an allowance for estimated losses resulting from the inability of its customers to make required payments. The Company estimates uncollectible amounts based upon historical bad debts, current customer receivable balances, the age of customer receivable balances, the customer’s financial condition and current economic trends.

Property and Equipment

Property and equipment and leasehold improvements are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from 3 to 5 years, or the lesser of the related initial term of the lease or useful life for leasehold improvements. Amortization of property and equipment recorded under a capital lease is included with depreciation expense. Expenditures for routine maintenance and repairs are charged against operations, while major replacements, improvements and additions are capitalized.

Noncontrolling Interests and Mandatorily Redeemable Financial Instruments

Noncontrolling interests (“NCI”) are evaluated by the Company and are shown as either a liability, temporary equity (shown between liabilities and equity) or as permanent equity depending on the nature of the redeemable features at amounts based on formulas specific to each entity. Generally, mandatorily redeemable NCIs are classified as liabilities and non-mandatorily redeemable NCIs are classified outside of stockholders’ equity in the Consolidated Balance Sheets as temporary equity under the caption, redeemable noncontrolling interests, and are measured at their redemption values at the end of each period. If the redemption value is greater than the carrying value, an adjustment is recorded in retained earnings to record the NCI at its redemption value. Redeemable NCIs that are mandatorily redeemable are classified as a liability in the Consolidated Balance Sheets under either other current liabilities or other long-term liabilities, depending on the remaining duration until settlement, and are measured at the amount of cash that would be paid if settlement occurred at the balance sheet date with any change from the prior period recognized as interest expense.

If the noncontrolling interest is not currently redeemable yet probable of becoming redeemable, the Company is required to either (1) accrete changes in the redemption value over the period from the date of issuance to the earliest redemption date of the instrument using an appropriate methodology, usually the interest method, or (2) recognize changes in the redemption value immediately as they occur and adjust the carrying value of the security to equal the redemption value at the end of each reporting period. The Company has elected to recognize changes in the redemption value immediately as they occur and adjust 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.

Net income attributable to NCIs reflects the portion of the net income (loss) of consolidated entities applicable to the NCI stockholders in the accompanying Consolidated Statements of Operations. The net income attributable to NCI is classified in the Consolidated Statements of Operations as part of consolidated net income and deducted from total consolidated net income to arrive at the net income attributable to the Company.

As of December 31, 2018 and 2017, the Company had a put option derivative financial instrument described as “Mandatorily redeemable financial instrument on its Consolidated Balance Sheets of zero and $38.0 million, respectively.

Business Combinations

The Company accounts for business combinations in accordance with the acquisition method. The acquisition method of accounting requires that assets acquired, liabilities assumed and any noncontrolling interest in the aquiree (if any), be recorded at their fair values on the date of a business acquisition. The Company’s consolidated financial statements and results of operations reflect an acquired business from the completion date of the transaction.

The judgments that the Company makes in determining the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact net income in periods following a business combination. The Company generally uses either the income, cost or market approach to aid in its conclusions of such fair values and asset lives. The income approach presumes that the value of an asset can be estimated by the net economic benefit to be received over the life of the asset, discounted to present value. The cost approach presumes that an investor would pay no more for an asset than its replacement or reproduction cost. The market approach estimates value based on what other participants in the market have paid for reasonably similar assets. Although each valuation approach is considered in valuing the assets acquired, the approach ultimately selected is based on the characteristics of the asset and the availability of information.

The Company records contingent consideration resulting from a business combination at its fair value on the acquisition date. Each reporting period thereafter, the Company revalues these obligations and records increases or decreases in their fair value as an adjustment to net change in contingent consideration obligation within the Consolidated Statements of Operations. Changes in the fair value of the contingent consideration obligation can result from updates in the achievement of financial or other operational targets and changes to the weighted probability of achieving those future targets. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, any change in the assumptions described above, could have a material impact on the amount of the net change in contingent consideration obligation that the Company records in any given period.

Discontinued Operations

The Company generally classifies a disposal transaction as discontinued operation in the consolidated financial statements when it qualifies as a component of the Company, meets the held for sale criteria, is disposed of by sale, or is disposed of other than by sale and it represents a strategic shift that has a major effect on the Company’s operations and financial results. Insignificant and non-strategic shifting divestitures are not classified within discontinued operations.

Investments in Affiliates and Other Entities

In the normal course of business, Synchronoss enters into various types of investment arrangements, each having unique terms and conditions. These investments may include equity interests held by Synchronoss in business entities, including general or limited partnerships, contractual ventures, or other forms of equity participation. Synchronoss determines whether such investments involve a variable interest entity (“VIE”) based on the characteristics of the subject entity. If the entity is determined to be a VIE, then management determines if Synchronoss is the primary beneficiary of the entity and whether or not consolidation of the VIE is required. The primary beneficiary consolidating the VIE must normally have both (i) the power to direct the activities of a VIE that most significantly affect the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE, in either case that could potentially be significant to the VIE. When Synchronoss is deemed to be the primary beneficiary, the VIE is consolidated and the other party’s equity interest in the VIE is accounted for as a noncontrolling interest.

The Company generally accounts for investments it makes in VIEs in which it has determined that it does not have a controlling financial interest but has significant influence over and holds at least a 20% ownership interest using the equity method. Any such investment not meeting the parameters to be accounted under the equity method would be accounted for using the cost method unless the investment had a readily determinable fair value, at which it would then be reported.

If an entity fails to meet the characteristics of a VIE, the Company then evaluates such entity under the voting model. Under the voting model, the Company consolidates the entity if they determine that they, directly or indirectly, have greater than 50% of the voting shares, and determine that other equity holders do not have substantive participating rights.

Allowance for Loan Losses

The Company’s allowance for credit losses relates to the related party note receivable and is based on the probable estimated losses that may be incurred. The allowance is based on two basic principles of accounting: (1) ASC Topic 450, “Accounting for Contingencies”, which requires that losses be accrued when they are probable of occurring and estimable, and (2) ASC Topic 310, “Accounting by Creditors for Impairment of a Loan”, which requires that losses be accrued based on the differences between the value of collateral and the present value of future cash flows.

The allowance for loan losses is established to estimate losses that may occur by recording a provision for loan losses that is charged to earnings in the period known. The allowance is evaluated by management taking into consideration adverse situations that may affect the borrower’s ability to repay and the estimated value of any underlying collateral. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Measured impairment and credit losses are charged against the allowance when management believes to the extent amounts are not collectible.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of assets acquired, including other definite-lived intangible assets. Goodwill is reviewed for impairment annually as of October 1st of each year or when an interim triggering event has occurred indicating potential impairment. The Company has concluded that it has two operating segments and one reportable segment because the aggregation criteria and the quantitative threshold test was met. The Company tests for goodwill impairment on each of its reporting units, which is at the operating segment or one level below the operating segment.

During the Company’s qualitative assessment, the Company makes significant estimates, assumptions, and judgments, around the financial performance of the Company, changes in share price, and forecasts of earnings, working capital requirements, and cash flows. The Company considers each reporting unit's historical results and operating trends as well as any strategic difference from the Company’s historical results when determining these assumptions.

The Company can opt to perform a qualitative assessment to test a reporting unit’s goodwill for impairment or the Company can directly perform the quantitative impairment test. If the Company determines that the fair value of a reporting unit is more likely than not to be less than its carrying amount, a quantitative impairment test is performed.

Fair value estimates used in the quantitative impairment test are calculated using a combination of the income and market approaches. The income approach is based on the present value of future cash flows of each reporting unit, while the market approach is based on certain multiples of selected guideline public companies or selected guideline transactions. The approaches incorporate a number of market participant assumptions including future growth rates, discount rates, income tax rates and market activity in assessing fair value and are reporting unit specific. If the carrying amount exceeds the reporting unit's fair value, the Company recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value.

The fair value measurement associated with the quantitative goodwill impairment test 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 goodwill could significantly increase or decrease the fair value estimates used for impairment assessments.

In order to assess the reasonableness of the estimated fair value of the Company’s reporting units, the Company compares the aggregate reporting unit fair value to the Company’s market capitalization on an overall basis and calculates an implied control premium (the excess of the sum of the reporting units’ fair value over the Company’s market capitalization on an overall basis). The Company evaluates the control premium by comparing it to observable control premiums from recent comparable transactions. If the implied control premium is determined to not be reasonable in light of these recent transactions, the Company re-evaluates its reporting unit fair values, which may result in an adjustment to the discount rate and/or other assumptions.

This re-evaluation could result in a change to the estimated fair value for certain or all reporting units. If the fair value of a reporting unit exceeds the carrying amount of the net assets assigned to that reporting unit, goodwill is not impaired.

If the fair value of the reporting unit is less than its carrying amount, goodwill is impaired and the excess of the reporting unit’s carrying value over the fair value is recognized as an impairment loss.

The Company recorded a $9.1 million impairment charge on the Zentry joint venture in 2018. There were no goodwill impairment charges recognized during the years ended December 31, 2017 and 2016. For further details, see Note 7. Goodwill and Intangibles.

Impairment of Long-Lived Assets

A review of long-lived assets for impairment is performed when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. If an indication of impairment is present, the Company compares the estimated undiscounted future cash flows to be generated by the asset to the asset’s carrying amount. If the undiscounted future cash flows are less than the carrying amount of the asset, the Company records an impairment loss equal to the amount by which the asset’s carrying amount exceeds its fair value. The fair value is determined based on valuation techniques such as a comparison to fair values of similar assets or 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 long lived assets could significantly increase or decrease the fair value estimates used for impairment assessments.

Long lived assets that do not have indefinite lives are amortized/depreciated over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company reevaluates the useful life determinations each year to determine whether events and circumstances warrant a revision to the remaining useful lives.

The Company recognized impairment charges to its intangible assets of $11.0 million, $1.0 million, and $11.1 million for the years ended December 31, 2018, 2017 and 2016 respectively. The Company includes these impairments within depreciation and amortization in its Consolidated Statements of Operations.

Income Taxes

On December 22, 2017, the U.S. government enacted TCJA. The TCJA makes changes to the corporate tax rate, business-related deductions and taxation of foreign earnings, among others, that will generally be effective for taxable years beginning after December 31, 2017. While our accounting for the recorded impact of the TCJA is deemed to be complete as of December 31, 2018, these amounts are based on prevailing regulations and currently available information, and any additional guidance issued by the Internal Revenue Service (IRS) could impact our recorded amounts in future periods. In 2018, the impact of the TCJA was minor due to the losses incurred and the valuation allowance position.

Since the Company conducts operations on a global basis, the effective tax rate has, and will depend upon, the geographic distribution of pre-tax earnings among locations with varying tax rates. The Company accounts for the effects of income taxes that result from activities during the current and preceding years. Under this method, deferred income tax liabilities and assets are based on the difference between the financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse or be utilized. The realization of deferred tax assets is contingent upon the generation of future taxable income. A valuation allowance is recorded if it is “more likely than not” that a portion or all of a deferred tax asset will not be realized.

In evaluating the Company’s ability to recover deferred tax assets within the jurisdiction from which they arise, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, the Company begins with historical results and incorporate assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax-planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates the Company is using to manage the underlying businesses. In evaluating the objective evidence that historical results provide, the Company considers three years of cumulative operating loss.

The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not to be sustained upon examination based on the technical merits of the position. The amount of the accrual for which an exposure exists is measured by determining the amount that has a greater than 50 percent likelihood of being realized upon the settlement of the position. Components of the reserve are classified as current or a long-term liability in the Consolidated Balance Sheets based on when the Company expects each of the items to be settled. The Company records interest and penalties accrued in relation to uncertain tax benefits as a component of interest expense.

While the Company believes it has identified all reasonably identifiable exposures and that the reserve it has established for identifiable exposures is appropriate under the circumstances, it is possible that additional exposures exist and that exposures may be settled at amounts different than the amounts reserved. It is also possible that changes in facts and circumstances could cause it to either materially increase or reduce the carrying amount of tax reserves. In general, tax returns for the year 2015 and thereafter are subject to future examination by tax authorities.

The Company’s policy has been to leave the cumulative unremitted foreign earnings invested indefinitely outside the United States, and it intends to continue this policy. Although the transition tax in the TCJA has removed U.S. federal taxes on distributions to the U.S. on a go forward, the Company continues to assert permanent reinvestment on foreign earnings. Due to the timing and circumstances of repatriation of such earnings, if any, it is not practicable to determine the unrecognized deferred tax liability relating to such amounts.

Foreign Currency

The functional currency of non-U.S. entities is translated into U.S. dollars for balance sheet accounts using the month end rates in effect as of the balance sheet date and average exchange rate for revenue and expense accounts for each respective period. The translation adjustments are deferred as a separate component of stockholders’ equity within accumulated other comprehensive income.

Gains or losses resulting from transactions denominated in foreign currencies are included in other income or expense, within the Consolidated Statements of Operations and were as follows:



	Year ended December 31,
	2018			2017			2016
Net loss on foreign currency translations	$	(478	)	$	(4,952	)	$	(270	)

Comprehensive Income (Loss)

Reporting on comprehensive income requires components of other comprehensive income, including unrealized gains or losses on available-for-sale securities, to be included as part of total comprehensive income. Comprehensive income is comprised of net income, translation adjustments and unrealized gains and losses on available-for-sale securities. The components of comprehensive income are included in the Consolidated Statements of Comprehensive Income (Loss).

Basic and Diluted Net Income Attributable to Common Stockholders per Common Share

Basic EPS is computed based upon the weighted average number of common shares outstanding for the year, excluding amounts associated with restricted shares.

Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the potential 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 potential dilutive effect of common stock includes stock options, convertible debt and unvested restricted stock. The dilutive effects of stock options and restricted stock awards are based on the treasury stock method. The dilutive effect of the assumed conversion of convertible debt is determined using the if-converted method. The after-tax effect of interest expense related to the convertible securities is added back to net income, and the convertible debt is assumed to have been converted into common shares at the beginning of the period.

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.

Stock-Based Compensation

As of December 31, 2018, the Company maintains eight stock-based compensation plans.

The Company utilizes the Black-Scholes pricing model to determine the fair value of stock options on the dates of grant. Restricted stock awards are measured based on the fair market values of the underlying stock on the dates of grant. The Company recognizes stock-based compensation over the requisite service period with an offsetting credit to additional paid-in capital.

For the Company’s performance restricted stock awards, the Company estimates the number of shares the recipient is to receive by applying a probability of achieving the performance goals. The actual number of shares the recipient receives is determined at the end of the performance period based on the results achieved versus goals based on the performance targets, such as revenues and earnings before interest, tax, depreciation and amortization (“EBITDA”) after certain adjustments. Once the number of awards is determined, the compensation cost is fixed and continues to be recognized using straight line recognition over the requisite service period for each vesting tranche.

During 2017, the Board approved the issuance of performance-based restricted stock to certain executives which are eligible to vest if the volume-weighted average closing price over 20 consecutive trading days equals or exceeds certain stock prices during the specific performance period from July 2017 to July 2019. The Company utilized the Monte Carlo simulation to estimate the fair value of the restricted stock on its grant date.

Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility was calculated based on historical information of the Company’s stock. The average expected life was determined using historical stock option exercise activity. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The Company has never declared or paid cash dividends on the common or preferred equity and does not anticipate paying any cash dividends in the foreseeable future. Forfeitures are accounted for as they occur.

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 consolidated financial statements as of the date of adoption.
Date of adoption: January 1, 2018.

Revenue

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 year ended December 31, 2018 was an increase of $29.4 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.

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. 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)	Within 90 days of the start 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.



	Twelve Months Ended December 31, 2018								Twelve Months Ended December 31, 2017
	Cloud		Digital		Messaging		Total		Cloud		Digital		Messaging		Total
Geography
Americas	$	153,649	$	86,422	$	9,603	$	249,674	$	224,058	$	106,629	$	8,809	$	339,496
APAC	—		5,954		35,397		41,351		—		6,506		23,208		29,714
EMEA	8,921		7,018		18,875		34,814		7,283		3,992		21,876		33,151
Total	$	162,570	$	99,394	$	63,875	$	325,839	$	231,341	$	117,127	$	53,893	$	402,361

Service Line
Professional Services	$	14,232	$	18,383	$	11,539	$	44,154	$	29,211	$	24,150	$	5,292	$	58,653
Transaction Services	9,025		9,706		—		18,731		11,831		19,024		—		30,855
Subscription Services	139,100		67,623		33,071		239,794		180,304		62,621		28,627		271,552
License	213		3,682		19,265		23,160		9,995		11,332		19,974		41,301
Total	$	162,570	$	99,394	$	63,875	$	325,839	$	231,341	$	117,127	$	53,893	$	402,361

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 December 31, 2018 is $4.1 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	(262,709		)
Amounts billed but not recognized as revenue	264,642
Balance - December 31, 2018	$	116,942

________________________________


*	Comprised of Deferred Revenue

Revenues recognized during the year ended December 31, 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 year ended December 31, 2018, the amount of amortization was $0.2 million 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. As of December 31, 2018, the Company had $5.8 million of capitalized contract fulfillment costs.

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 December 31, 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 the Company is 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 the Company’s 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 December 31, 2018, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $344.7 million, of which approximately 96.2% 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 Consolidated Balance Sheet and Consolidated Statement of Operations was as follows:



	December 31, 2018
	As Reported			Impacts of the New Revenue Standard			Adjusted amounts under prior GAAP
ASSETS
Current assets:
Cash and cash equivalents	$	103,771		$	—		$	103,771
Restricted cash**	6,089			—			6,089
Marketable securities, current	28,230			—			28,230
Accounts receivable, net ⁽¹⁾	102,798			8,027			94,771
Prepaid expenses	45,058			—			45,058
Other current assets ⁽²⁾	8,508			(641		)	9,149
Total current assets	294,454			7,386			287,068
Marketable securities, non-current	6,658			—			6,658
Property and equipment, net	67,937			—			67,937
Goodwill	224,899			—			224,899
Intangible assets, net	98,706			—			98,706
Deferred tax assets	—			—			—
Other assets ⁽²⁾	8,982			320			8,662
Equity method investment	1,619			—			1,619
Total assets	$	703,255		$	7,706		$	695,549

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	13,576		$	—		$	13,576
Accrued expenses	59,545			—			59,545
Deferred revenues, current ⁽³⁾	57,101			(12,134		)	69,235
Short-term convertible debt, net of debt issuance costs	113,542			—			113,542
Total current liabilities	243,764			(12,134		)	255,898
Lease financing obligation	9,494			—			9,494
Deferred tax liabilities	1,347			—			1,347
Deferred revenues, non-current ⁽³⁾	59,841			1,869			57,972
Other liabilities	10,797			—			10,797
Redeemable noncontrolling interest	12,500			—			12,500
Commitments and contingencies (Note 9)
Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 195 shares issued and outstanding at December 31, 2018	176,603			—			176,603
Stockholders’ equity:
Common stock, $0.0001 par value; 100,000 shares authorized, 49,836 and 52,024 shares issued; 42,674 and 46,965 outstanding at December 31, 2018 and December 31, 2017, respectively	5			—			5
Treasury stock, at cost (7,162 and 5,059 shares at December 31, 2018 and December 31, 2017, respectively)	(82,087		)	—			(82,087		)
Additional paid-in capital	534,673			—			534,673
Accumulated other comprehensive loss ⁽⁴⁾	(30,383		)	35			(30,418		)
Accumulated deficit	(233,299		)	17,936			(251,235		)
Total stockholders’ equity	188,909			17,971			170,938
Total liabilities and stockholders’ equity	$	703,255		$	7,706		$	695,549

________________________________


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



	Twelve Months Ended December 31, 2018
	As Reported			Impacts of the New Revenue Standard			Adjusted amounts under prior GAAP
Net revenues ⁽³⁾	$	325,839		$	29,367		$	296,472
Costs and expenses:
Cost of revenues* ⁽⁵⁾	158,802			841			157,961
Research and development	79,172			—			79,172
Selling, general and administrative ⁽²⁾	122,112			202			121,910
Restructuring charges	12,375			—			12,375
Depreciation and amortization	117,654			—			117,654
Total costs and expenses	490,115			1,043			489,072
Loss from continuing operations	(164,276		)	28,324			(192,600		)
Interest income	7,770			—			7,770
Interest expense	(4,911		)	(138		)	(4,773		)
Gain on extinguishment of debt	1,760			—			1,760
Other expense, net	(74,917		)	(120		)	(74,797		)
Equity method investment loss, net	(28,600		)	—			(28,600		)
Loss from continuing operations, before taxes	(263,174		)	28,066			(291,240		)
Benefit for income taxes	17,894			—			17,894
Net loss from continuing operations	(245,280		)	28,066			(273,346		)
Net income from discontinued operations, net of tax**	18,288			—			18,288
Net loss	(226,992		)	28,066			(255,058		)
Net loss attributable to redeemable noncontrolling interests	8,837			—			8,837
Preferred stock dividend	(25,593		)	—			(25,593		)
Net loss attributable to Synchronoss	$	(243,748	)	$	28,066		$	(271,814	)

Basic:
Continuing operations	$	(6.51	)	$	0.69		$	(7.20	)
Discontinued operations**	0.46			—			0.46
	$	(6.05	)	$	0.69		$	(6.74	)
Diluted:
Continuing operations	$	(6.51	)	$	0.69		$	(7.20	)
Discontinued operations**	0.46			—			0.46
	$	(6.05	)	$	0.69		$	(6.74	)
Weighted-average common shares outstanding:
Basic	40,277						40,277
Diluted	40,277						40,277

________________________________


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


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


⁽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	28,066
Impact on Retained Earnings at December 31, 2018	$	17,936

Standards issued not yet adopted

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires that the rights and obligations created by leases with a duration greater than 12 months be recorded as assets and liabilities on the balance sheet of the lessee. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company plans to adopt this standard as of January 1, 2019 using the modified retrospective approach for all leases entered into before the effective date. The Company has also elected the option, as permitted in ASU 2018-11, Leases (Topic 842): Targeted Improvements, whereby initial application of the new leases standard would occur at the adoption date and a cumulative-effect adjustment would be recognized to the opening balance of retained earnings in the period of adoption. For comparability purposes, the Company will continue to comply with existing disclosure requirements in accordance with existing lease guidance for all periods presented in the year of adoption.

The Company will elect 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 plans to elect the package of transition practical expedients related to lease identification, lease classification, and initial direct costs. The Company also plans to elect 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 plans to make 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.

Upon adoption of this standard, the Company expects to recognize additional assets and liabilities upon implementation of ASC Topic 842 ranging from $60 million to $70 million to reflect right-of-use assets and lease liabilities as of January 1, 2019. The Company is still finalizing the impact of adopting this new accounting standard on its financial statement.



Standard	Description	Effect on the financial statements
Update 2018-17-Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities	For entities other than private companies, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments in this Update are effective for a private company for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. All entities are required to apply the amendments in this Update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. Early adoption is permitted.	The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements.
Date of adoption: January 1, 2020.
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 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 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 consolidated financial statements.
Date of adoption: January 1, 2020.

Segment and Geographic Information

The Company’s chief operating decision‑maker is the Principal Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions. However, in assessing financial performance and allocating resources, the Company considers the markets in which it operates. The Company has determined that it currently operates in two business segments: (i) providing cloud solutions and software‑based activation for connected devices globally and (ii) enterprise solutions. Given the size of the Company’s enterprise segment, and the Company’s shift in focus toward the telecommunications, media and technology (“TMT”) market, the Company concluded that it has one reportable segment. Although the Company operates in North America, Europe and Asia‑Pacific a majority of the Company’s revenue and long-lived assets are in the U.S.

Revenues by geography are based on the billing addresses of the Company’s customers. The following tables set forth revenues and property and equipment, net by geographic area:



	Year Ended December 31,
	2018		2017		2016
Revenues
Domestic	$	249,674	$	334,970	$	360,891
Foreign	76,165		67,391		65,403
Total	$	325,839	$	402,361	$	426,294



	Year Ended December 31,
	2018		2017
Property and equipment, net:
Domestic	$	59,054	$	106,727
Foreign	8,883		5,098
Total	$	67,937	$	111,825

Acquisitions and Divestitures

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Acquisitions and Divestitures

3. Acquisitions and Divestitures

2018 Transactions

Acquisition

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 December 31, 2018, the balance sheet reflected intangible assets, other long term receivables and net working capital in the amount of $8.1 million, $8.7 million and $1.6 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 Consolidated Statements of Operations.

Divestitures

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 Consolidated Balance Sheet.

2017 Transactions

Intralinks

Acquisition

On January 19, 2017, the Company purchased all outstanding shares of Intralinks Holdings, Inc. (“Intralinks”). In connection with the acquisition, the Company entered into a $900.0 million senior secured term loan (the “2017 Term Facility”), as of the date of acquisition. Intralinks is a global technology provider of Software as a service (“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 as of the date of acquisition (See Note 10. Debt for further discussion regarding the credit agreement).

The following is a summary of the components of the consideration transferred as part of the acquisition:



Cash consideration for outstanding Intralinks’ common shares	$	746,071
Cash consideration for accelerated equity awards to Intralinks’ employees upon change in control	7,873
Cash consideration for vested unexercised Intralinks’ stock options	19,838
Cash consideration for existing Intralinks’ debt	77,800
Cash consideration for shareholders purchase price settlement	2,794
Total cash consideration transferred	854,376
Fair value of replacement awards	4,702
Total consideration transferred	$	859,078

The purchase price allocation as of the date of the acquisition was as follows:



	Weighted Average Life in Years	Purchase Price Allocation
Cash		$	39,370
Accounts receivable		46,182
Prepaid expenses and other assets		9,775
Property and equipment, net	4	14,075
Goodwill		482,822
Intangible Assets:
Developed technology	6	79,400
Capitalized software costs	1	277
Trade name	18	47,800
Customer relationships	10	284,100
		411,577
Other assets, long-term		3,865
Investment in unconsolidated affiliate		5,800
Total assets acquired		1,013,466

Accounts payable		4,853
Accrued expenses		21,421
Deferred revenues, short-term		12,449
Deferred tax liability		110,044
Deferred revenues, long-term		1,051
Other liabilities, long-term		4,570
Total liabilities		154,388
Net assets acquired		$	859,078

The goodwill recorded in connection with this acquisition was primarily attributed to operating synergies and other benefits expected to result from the combined operations and the assembled workforce acquired. The goodwill acquired is not deductible for tax purposes.

Divestitures

On June 23, 2017, the Company received a non-binding indication of interest from Siris Capital Group, LLC (“Siris”) to acquire the Company. In light of the indication of interest, the Company’s 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 its goal of maximizing shareholder value was to focus on its core Telecommunication, Media and Technology (“TMT”) business, divest non-core assets and improve the Company’s 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 option to investment in convertible preferred equity of the Company.

Subject to the terms and conditions set forth in the 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”), a related party, due to its significant interest in the Company’s common stock. 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.

Under the terms of the Share Purchase Agreement, the Company also provided Siris with a Siris Put Right (“Siris Put Right”), which would allow Silver to put shares held at the time, to Synchronoss at price of $14.56 per share, or $87.3 million in the aggregate. The Company determined that the Call option on the issuance of preferred and the Siris Put Right, together, represented one mandatorily redeemable financial instrument with a fair value of $33.6 million, which reduced the gain on sale of Intralinks.

At the closing of the Intralinks Transaction on November 14, 2017, Impala acquired all of the issued and outstanding shares of Intralinks for approximately $991.0 million in cash, subject to post-closing adjustments for changes in cash, debt and working capital. 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.

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 us of the 5,994,667 shares of our common stock held by Silver (the “Preferred Transaction”). In connection with the issuance of the Series A Preferred Stock, we (i) filed a Certificate of Designation with the State of Delaware setting forth the rights, preferences, privileges, qualifications, restrictions and limitations on the Series A Preferred Stock (the “Series A Certificate”) and (ii) entered into an Investor Rights Agreement with Silver setting forth certain registration, governance and preemptive rights of Silver with respect to us (the “Investor Rights Agreement”). See Note 12. Capital Structure for further discussion.

The following is a summary of the operating results of Intralinks during the year ended December 31, 2017, which have been reflected within income from discontinued operations, net of tax:



	2017
Net revenues	$	213,178
Costs and expenses:
Cost of services	35,393
Research and development	19,148
Selling, general and administrative	114,737
Restructuring	15,995
Depreciation and amortization	41,780
Total costs and expenses	227,053
Other income, net	1,448
Loss from discontinued operations	(12,427		)
Gain on sale of discontinued operations	122,842
Income from discontinued operations before taxes	110,415
Provision for income taxes	(34,920		)
Discontinued operations, net of taxes	$	75,495

The pre-tax gain on sale of Intralinks included in the Consolidated Statement of Operations was $122.8 million for the year ended December 31, 2017.

The Company signed a Transition Service Agreement (“TSA”) to provide accounting, tax, legal, payroll and IT services for up to six months after the divestiture. Amounts earned under the agreement were reflected as a reduction in Selling, general and administrative expenses in the statement of operations.

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 Consolidated Statement of Operations.

Acquisition-Related Costs

Total acquisition-related costs recognized during the year ended December 31, 2018, 2017 and 2016 including transaction costs such as legal, accounting, valuation and other professional services, were $0.1 million, $13.0 million and $10.9 million, respectively, and are included in selling, general and administrative expense in the Consolidated Statements of Operations.

Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

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:



	December 31, 2018
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash, cash equivalents and restricted cash ⁽¹⁾	$	109,860	$	109,860	$	—	$	—
Marketable securities-short term ⁽²⁾	28,230		—		28,230		—
Marketable securities-long term ⁽²⁾	6,658		—		6,658		—
Total assets	$	144,748	$	109,860	$	34,888	$	—
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, certificates of deposit. corporate bonds, treasury bonds, and mutual funds.


⁽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 10 - 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.

Marketable 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 year ended December 31, 2018.

For marketable debt securities, unrealized gains and losses are reported as a component of accumulated other comprehensive income in stockholders’ equity. 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 December 31, 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.

The marketable equity securities are mutual funds measured at fair value and classified within Level 2 in the fair value hierarchy. Upon the adoption of ASU 2016-01 on January 1, 2018, unrealized gains and losses related to our marketable equity securities were recognized in other income (expense), net. The adoption of ASU 2016-01 did not have a material impact on the consolidated financial statements as there was no activity prior to 2018 and insignificant activity in the current year.

At December 31, 2018 and December 31, 2017, the estimated fair value of investments in marketable debt securities, were as follows:



	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities - debt:
Certificates of deposit	$	3,776	$	—	$	(16	)	$	3,760
Corporate bonds	402		—		(1		)	401
Municipal bonds	10,913		—		(32		)	10,881
Treasury bonds	15,685		—		—			15,685
Total	$	30,776	$	—	$	(49	)	$	30,727

As of December 31, 2018, an insignificant amount of accumulated unrealized losses related to investments that have been in a continuous unrealized loss position for 12 months or longer. The aggregate fair value of investment with unrealized losses was approximately $14.9 million.



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



	December 31, 2018
	Amortized Cost		Fair Value
Due within one year	$	24,093	$	24,069
Due after 1 year through 5 years	6,328		6,304
Due after 5 years through 10 years	355		354
Due after 10 years	—		—
Total marketable securities - debt	$	30,776	$	30,727

At December 31, 2018 and December 31, 2017, the estimated fair value of investments in marketable equity securities, were as follows:



Balance at December 31, 2017	$	—
Mutual funds purchases	4,161
Realized gains (losses)	—
Balance at December 31, 2018	$	4,161

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 Consolidated Balance Sheets.

The changes in fair value of the Company’s Level 3 redeemable noncontrolling interests during the year ended December 31, 2018 were as follows:



Balance at December 31, 2017	$	25,280
Fair value adjustment	(3,943		)
Net loss attributable to redeemable noncontrolling interests	(8,837		)
Balance at December 31, 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 Sequential Technology International Holdings LLC (“STIH”) interest in Sequential Technology International, LLC (“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 Consolidated Balance Sheets. For further details see Note 5. Investments in Affiliates and Related Transactions.

Equity Method Investments and Joint Ventures [Abstract]

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

12 Months Ended

Dec. 31, 2018

Investments in Affiliates and Related Transactions

5. 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 Consolidated Balance Sheets. As of December 31, 2018, the Company’s investments in equity interests was comprised of $1.6 million related to a 30% equity interest in STIN.

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 December 31, 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.

The Company concluded that STIN is a VIE as it lacks sufficient equity to finance its activities. However, the Company is not the primary beneficiary of STIN, as the Company does not have the power to direct the activities that most significantly impact STIN’s economic performance and the obligation to absorb losses or the right to receive benefits from STIN that could potentially be significant to STIN.

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 year ended December 31, 2018 and 2017, the Company recognized $25.7 million and $26.0 million, respectively in revenue related to Cloud Telephony and Support services, and $2.1 million and $1.7 million, respectively, in revenue related to all other services.

Impairments of Investments

The Company regularly reviews its equity investments for impairments based on criteria that include the extent to which the investment’s carrying value exceeds its related market value, the duration of the market decline, the Company’s ability to hold its investment until recovery and the investment’s financial strength and specific prospects.

Impairments of investments are reflected in “Equity method income/loss” in the Consolidated Statements of Operations and were recorded as a result of either the deteriorating financial position of the investee or due to a permanent impairment resulting from sustained losses and limited prospects for recovery.

During the fourth quarter of 2018, the Company determined that its investment in STIN was other-than-temporarily impaired due to the deteriorating financial position of the investee. As a result, the Company estimated the fair value of its investment in STIN using a combination of the income and market approach and recorded a non-cash, other-than-temporary impairment of $22.9 million. The discounted cash flow fair value estimate is based on known or knowable information at the interim measurement date. The significant assumptions that were used to develop the estimate of the fair value under the discounted cash flow method include management’s best estimates of the expected future results and a discount rate of 20.0% percent. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As such, the fair value of the equity method investment and its underlying assets represents a Level 3 measurement. As a result, actual results may differ from the estimates and assumptions made for purposes of this impairment analysis.

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	)	$	(12,162	)	$	11,096	$	6,187	$	425	$	73,984
Activity	—		(84,314		)	438			6,103		3,293		496		(73,984		)
December 31, 2018	$	83,000	$	(98,876	)	$	(11,724	)	$	17,199	$	9,480	$	921	$	—

During the year ended December 31, 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 and Impairment of PIK Note

Effective July 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. Subsequent to the modification, STIN experienced further business declines. No payments on the PIK note were received from STIN subsequent to the modification and there were no indications from STIN as a result of the further business declines that any future payments would be received. Accordingly, the Company determined that collectability of the PIK note is no longer probable and recorded an impairment charge for the remaining balance of $66.1 million.

The STIN affiliate balances and their classification in the Consolidated Balance Sheet as of December 31, 2018, were as follows:



	December 31, 2018		December 31, 2017
Restricted cash ^(A)	$	—	$	118
Accounts receivable ^(B)	27,532		18,033
Total assets	$	27,532	$	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 December 31, 2018 and December 31, 2017, respectively. This amount has been classified in short-term restricted cash and in accrued expenses on the 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.

Property and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment

6. Property and Equipment

Property and equipment consist of the following:



	December 31,
	2018			2017
Computer hardware	$	246,373		$	250,453
Computer software	64,530			62,335
Construction in-progress	651			471
Furniture and fixtures	9,408			7,736
Building	8,808			8,808
Leasehold improvements	23,602			19,591
	353,372			349,394
Less: Accumulated depreciation	(285,435		)	(237,569		)
	$	67,937		$	111,825

Depreciation expense was approximately $55.8 million, $57.0 million, and $51.8 million for 2018, 2017, and 2016, respectively. Amortization of property and equipment recorded under capital leases are included in depreciation expense.

Goodwill and Intangibles

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

7. Goodwill and Intangibles

Goodwill

The Company records goodwill which represents the excess of the purchase price over the fair value of assets acquired, including other definite-lived intangible assets. Goodwill is reviewed annually for impairment or upon the occurrence of events or changes in circumstances that would more likely than not reduce the fair value of the reporting unit below its carrying amount.

The following table shows the adjustments to goodwill during 2018 and 2017:



Balance at December 31, 2016	$	224,651
Divestitures	(1,854		)
Reclassifications adjustments and other	181
Translation adjustments	14,325
Balance at December 31, 2017	$	237,303
Acquisitions	2,156
Impairment	(9,100		)
Reclassifications adjustments and other	—
Translation adjustments	(5,460		)
Balance at December 31, 2018	$	224,899

The reclassification adjustments and other of nil and $0.2 million for the years 2018 and 2017 are primarily related to purchase accounting adjustments and a change in the Company’s deferred tax asset in connection with a pre-acquisition tax loss, respectively.

When performing its annual impairment test, the Company compares the fair value of each reporting unit to its carrying amount with the fair values derived from the market approach the income approach. Under the market approach, the Company estimates fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting unit. The Company weights the fair value derived from the market approach depending on the level of comparability of these publicly-traded companies to the reporting unit. When market comparables are not meaningful or not available, the Company estimates the fair value of a reporting unit using only the income approach. Under the income approach, the Company estimates the fair value of a reporting unit based on the present value of estimated future cash flows. The Company bases cash flow projections on management’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The Company bases the discount rate on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit’s ability to execute on the projected cash flows.

The Company recorded a $9.1 million impairment charge on the Zentry joint venture in 2018 as a result of various business changes to Zentry, which ultimately led the Company to sunset certain Zentry product offerings. The Company evaluated the impact of these business changes and determined that the future cash flows generated by the assets were not sufficient to support its recoverability and accordingly, the Company recognized an impairment charge for Zentry’s outstanding goodwill. The Company did not recognize goodwill impairment charges for the years ended December 31, 2017 and 2016.

Other Intangible Assets

The Company’s intangible assets with definite lives consist primarily of technology, capitalized software, trade names, and customer lists and relationships. These intangible assets are being amortized on the straight-line method over the estimated useful lives of the assets. Amortization expense related to intangible assets for the years ended December 31, 2018, 2017 and 2016 was $41.3 million, $36.9 million and $43.1 million, respectively.

The Company’s intangible assets consist of the following:



	December 31, 2018
	Cost		Accumulated Amortization			Net
Technology	$	100,896	$	(73,271	)	$	27,625
Customer lists and relationships	127,755		(75,123		)	52,632
Capitalized software and patents	33,710		(15,261		)	18,449
Trade name	2,546		(2,546		)	—
	$	264,907	$	(166,201	)	$	98,706



	December 31, 2017
	Cost		Accumulated Amortization			Net
Technology	$	124,799	$	(70,608	)	$	54,191
Customer lists and relationships	128,170		(62,905		)	65,265
Capitalized software and patents	19,792		(7,115		)	12,677
Trade name	2,559		(2,525		)	34
	$	275,320	$	(143,153	)	$	132,167

Estimated future amortization expense of its intangible assets for the next five years is as follows:



Year ending December 31,
2019	$	31,954
2020	20,107
2021	12,902
2022	10,168
2023	5,846
Thereafter	17,729
Total	$	98,706

Accrued Expenses

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

Accrued Expenses

8. Accrued Expenses

Accrued expenses consist of the following:



	December 31,
	2018		2017
Accrued compensation and benefits	$	26,840	$	22,679
Accrued professional service fees	8,177		31,535
Accrued telecommunications	1,758		3,028
Accrued income taxes payable	1,394		2,810
Accrued preferred dividend	7,075		—
Accrued other	14,301		12,687
Total	$	59,545	$	72,739

Commitments, Contingencies and Other

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Other

9. Commitments, Contingencies and Other

Lease and Purchase Obligations

The Company leases office space, automobiles, office equipment and co-location services under non-cancelable capital leases, operating leases or long-term agreements that expire at various dates, with the latest expiration in 2029. The Company recognizes rent expense on a straight-line basis over the non-cancelable lease term and records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. Where leases contain escalation clauses, rent abatements, and/or concessions, such as rent holidays and landlord or tenant incentives or allowances, the Company applies them as straight-line rent expense over the lease term.

Aggregate annual future minimum payments under these non-cancelable agreements are as follows:



Year ending December 31,	Colocation		Operating Leases		Capital Leases
2019	$	18,868	$	10,563	$	2,627
2020	18,426		11,413		1,594
2021	43		10,533		1,594
2022	—		10,014		1,594
2023 and thereafter	—		37,954		7,438
	$	37,337	$	80,477	$	14,847

Rent expense for the years ended December 31, 2018, 2017 and 2016 was $11.7 million, $10.6 million and $8.5 million respectively.

Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

10. Debt

Total debt consists of the following:



	December 31, 2018			December 31, 2017
Convertible Senior Notes	$	113,980		$	230,000
Unamortized debt issuance cost ⁽¹⁾	(438		)	(2,296		)
Total debt, carrying value	$	113,542		$	227,704
Total short-term debt, carrying value	$	113,542		$	—
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 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 December 31, 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. On November 2, 2018, we retired approximately $116.0 million of the 2019 Notes as part of a settlement agreement entered into on November 1, 2018, among us, Indaba Capital Fund, L.P and Westwood Management Corp. related to the BNY Action and, as a result the parties filed a stipulation of dismissal of the BNY Action. For additional information regarding this litigation, see Item 3. “Legal Proceedings” contained in this Form 10-K.

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 years ended December 31, 2018, 2017 and 2016 interest expense for the Company’s 2019 Notes related to the contractual interest coupon was $1.6 million, $1.7 million and $1.7 million respectively.

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 December 31, 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 18. Legal Matters.

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 18. Legal Matters.

At December 31, 2018, the carrying amount of the liability was $113.5 million and the outstanding principal of the 2019 Notes was $114.0 million, with an effective interest rate of approximately 1.37%. The fair value of the 2019 Notes was $109.7 million at December 31, 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.

2017 Credit Agreement

On January 19, 2017, the Company entered into a new credit agreement with the lending institutions from time to time parties thereto and Goldman Sachs as administrative agent, collateral agent, swingline lender and a letter of credit issuer (as amended from time to time, the “2017 Credit Agreement”) which was comprised of a $900.0 million term credit facility with a maturity date of January 19, 2024 (the “2017 Term Facility”) and a revolving credit facility of up to $200.0 million (the “Revolving Facility”) with a maturity date of January 19, 2022. Obligations under the 2017 Credit Agreement were guaranteed by certain of the Company’s subsidiaries and secured by substantially all of the Company’s and its subsidiaries’ assets.

The 2017 Term Facility amortized at 1% per annum in equal quarterly installments with the balance payable on the maturity date. The Revolving Facility included borrowing capacity available for letters of credit and for borrowings on same-day notice under swingline loans and borrowing thereunder could be used for working capital needs and other general corporate purposes.

The 2017 Term Facility initially bore interest at a rate equal to, at the Company’s option, the adjusted LIBOR rate for an applicable interest period or an alternate base rate, in each case, plus an applicable margin of 2.75% or 1.75%, respectively. The Revolving Facility initially bore an interest at a rate equal to, at the Company’s option, the adjusted LIBOR rate or an alternate base rate, in each case, plus an applicable margin of 2.50% or 1.50%, respectively, subject to step-downs based on the Company’s ratio of first lien secured debt to adjusted EBITDA, as defined in the 2017 Credit Agreement. The Company paid a commitment fee in the range of 0.25% to 0.375% on the unused balance of the Revolving Facility. Interest was payable quarterly under the 2017 Credit Agreement.

Subject to certain customary exceptions, the 2017 Term Facility was subject to mandatory prepayments in amounts equal to: (1) 100% of the net cash proceeds from any non-ordinary course sale or other disposition of assets (including as a result of casualty or condemnation) by Synchronoss or its subsidiaries subject to customary reinvestment provisions and certain other exceptions; (2) 100% of the net cash proceeds from incurrences of debt (other than permitted debt); and (3) a customary annual excess cash flow sweep at levels based on the Company’s applicable ratio of first lien secured debt to adjusted EBITDA, as defined in the 2017 Credit Agreement.

The 2017 Credit Agreement contained a number of customary affirmative and negative covenants and events of default, which, among other things, restricted the Synchronoss’ and its subsidiaries’ ability to incur debt, allow liens on assets, make investments, pay dividends or prepay certain other debt. The 2017 Credit Agreement also required Synchronoss to comply with certain financial maintenance covenants, including a total gross leverage ratio and an interest charge coverage ratio.

Certain of the lenders under the 2017 Credit Agreement, or their affiliates, provided, and may in the future from time to time provide, certain commercial and investment banking, financial advisory and other services in the ordinary course of business for the registrant and its affiliates, for which they have in the past and may in the future receive customary fees and commissions.

As a result of the Company’s restatement, it was unable to comply with covenants requiring the timely delivery of audited financial statements and interim financial information. The Company obtained waivers to extend the dates by which the Company was required to deliver such financial information to June 30, 2017.

Waiver Agreement to 2017 Credit Agreement

On June 30, 2017, the Company, the Lenders and the Administrative Agent entered into a Limited Waiver to Credit Agreement (the “Waiver Agreement”) pursuant to which the Lenders agreed, subject to the limitations contained in the Waiver Agreement, to temporarily waive (the “Limited Waiver”) the anticipated event of default (the “Anticipated Event of Default”) resulting from the Company’s failure to deliver its first quarter 2017 financial statements, together with related items required under the 2017 Credit Agreement on or prior to June 30, 2017. In the absence of the Limited Waiver, after the occurrence of the Anticipated Event of Default the Lenders would be permitted to exercise their rights and remedies available to them under the 2017 Credit Facility with respect to an event of default. The Limited Waiver was designed to give the Company and the Lenders additional time to negotiate in good faith and document certain amendments to the 2017 Credit Facility.

As consideration for the Limited Waiver, the Company agreed to pay a consent fee to each Lender who consented to the Waiver Agreement in an amount equal to 0.15% of the aggregate principal amount of such consenting Lender’s revolving credit commitments and term loans outstanding under the 2017 Credit Agreement, which amount was credited against any consent fee that was required to be paid in connection with any subsequent waiver of the Anticipated Event of Default or related amendment of the 2017 Credit Agreement. In addition, the Company paid the reasonable fees and expenses of counsel and other costs and expenses requested by the Administrative Agent on behalf of the Lenders and certain other fees as set forth in the Waiver Agreement.

First Amendment to 2017 Credit Agreement

On July 19, 2017, the Company entered into a first amendment and limited waiver to the 2017 Credit Agreement (the “First Amendment”). Pursuant to the First Amendment, the lenders and administrative agent agreed to extend the time period for delivery by the Company of its quarterly financial statements for the quarters ended March 31, 2017 and June 30, 2017 (the “2017 Quarterly Financial Statements”) and to waive the default and event of default arising from the Company’s failure to deliver the 2017 Quarterly Financial Statements within the timeframe originally required by the 2017 Credit Agreement (or, at the Company’s election, November 16, 2017, if prior to October 17, 2017 the Company pays a fee to the Lenders equal to 25 basis points on the aggregate principal amount of revolving commitments and terms loans outstanding).

The First Amendment effected various other changes to the terms of the Credit Agreement, including reducing revolving credit commitments from $200.0 million to $100.0 million (with a sub-limit on usage of $50.0 million until the earliest date by which the Company has delivered the 2017 Quarterly Financial Statements, the restated financial statements for the fiscal years ended December 31, 2016 and 2015 (and the respective quarterly periods) and certain information with respect to disclosing and remedying any material weaknesses in the Company’s internal control structure related to financial reporting.)

Under the First Amendment, the Company was required to maintain a first lien secured net leverage ratio of no more than (x) 5.50 to 1 for any period ending from September 30, 2017 through March 31, 2019; (y) 5.00 to 1 for any period ending June 30, 2019 through December 31, 2019; and (z) 4.25 to 1 for any period ending March 31, 2020 and thereafter. The Company was also required to maintain a minimum interest coverage ratio of no less than 2.00 to 1.

Until the earlier of (A) the later of (i) December 15, 2017 and (ii) in the event that, prior to December 15, 2017, the Company has publicly announced a strategic transaction, or merger, business combination, acquisition or divestiture that would result in a change of control or a requirement to prepay the loans and terminate commitments under the Amended Credit Agreement, the date on which such transaction is consummated or abandoned (the “Initial Period End Date”) and (B) June 15, 2018, term loans under the Amended Credit Agreement bear interest at a rate equal to, at the Company’s option, the adjusted LIBOR rate for an applicable interest period or an alternate base rate (subject to a floor of 1.00% and 2.00%, respectively), in each case, plus an applicable margin of 4.50% or 3.50%, respectively. Thereafter, the applicable margins increase to 5.75% and 4.75%, respectively, if the Company’s first lien secured net leverage ratio is less than or equal to 5.00 to 1, and to 6.75% and 5.75%, respectively, if the Company’s first lien secured net leverage ratio is greater than 5.00 to 1. The foregoing applicable margins are subject to a retroactive increase of 0.25% each if the Restated Financial Statements show an amount of net revenue for any fiscal year ended December 31, 2015, December 31, 2016 and, if applicable, December 31, 2014 that varies by greater than 15% of the net revenue set forth on Consolidated Balance Sheets and related Consolidated Statements of Operations of the Company for such fiscal year that had originally been filed with the Securities and Exchange Commission.

Until the Initial Period End Date, revolving loans under the Amended Credit Agreement bear interest at a rate equal to, at Company’s option, the adjusted LIBOR rate or an alternate base rate (subject to a floor of 1.00% and 2.00%, respectively), in each case, plus an applicable margin of 4.50% or 3.50%, respectively. Thereafter, the applicable margins will be subject to step-downs based on the Company’s first lien secured net leverage ratio.

Until the Initial Period End Date, term loans under the Amended Credit Agreement are subject to a prepayment premium of 1.00% solely if prepaid with proceeds of a repricing transaction. Thereafter, the term loans will be subject to (x) a 2.00% prepayment premium for any voluntary prepayments (including upon a change of control) made through the one-year anniversary of the Initial Period End Date and (y) a 1.00% prepayment premium for any voluntary prepayments (including upon a change of control) made after the one-year anniversary of the Initial Period End Date and prior to the second anniversary thereof.

The Amendment also effected various other changes to the baskets and exceptions under the negative covenants of the Credit Agreement.

The Company’s effective interest rate on the term loans was approximately 4.08% prior to the First Amendment and ranged from 5.74% to 5.76% from July 19, 2017 through November 2017. During 2017, the Company paid approximately $16.8 million in fees related to obtaining waivers, amendments, and consents in relation to the 2017 Credit Agreement as a result of the delay in the delivery of the 2017 Quarterly Financial Statements. These costs were recognized within the Interest expense line of the Consolidated Statements of Operations until the debt was repaid in the fourth quarter of 2017. The remaining balance was recognized within the Extinguishment of debt line item of the Consolidated Statements of Operations.

Repayment of 2017 Credit Agreement

In connection with the consummation of the Intralinks divestiture (See Note 3. Acquisitions and Divestitures), the Company utilized a portion of the proceeds from the Intralinks divestiture to repay all outstanding obligations under the 2017 Credit Agreement. In connection therewith, the Company delivered all notices and took all other actions to facilitate and cause the termination of the 2017 Credit Agreement, the repayment in full of all obligations then outstanding thereunder and the release of any security interests in connection therewith, effective as of November 14, 2017. The aggregate payoff amount was approximately $897.5 million and included all accrued interest, fees and prepayment penalties associated therewith. The Company incurred approximately $29.4 million of a loss on the extinguishment of the 2017 Credit Agreement for the year ended December 31, 2017.

Amended Credit Facility

On July 7, 2016, the Company entered into an Amended Credit Facility with Wells Fargo Bank, National Association, as administrative agent and several lenders party thereto (the “Amended Credit Facility”). The Amended Credit Facility, was permitted to be used for general corporate purposes, was a $250.0 million unsecured revolving line of credit that was set to mature on July 7, 2021, subject to terms and conditions set forth therein. The Company paid a commitment fee in the range of 15 to 30 basis points on the unused balance of the revolving credit facility under the Amended Credit Facility. Synchronoss had the right to request an increase in the aggregate principal amount of the Amended Credit Facility up to $350.0 million. Interest on the borrowings ranged from 1.94% to 2.03%.

On January 19, 2017, the Company repaid all outstanding obligations under the Amended Credit Facility with Wells Fargo Bank and the several lenders party thereto. The aggregate payoff amount was $29.0 million and included all accrued interest and associated prepayment penalties.

Interest expense

The following table summarizes the Company’s interest expense:



	Twelve Months Ended December 31,
	2018		2017		2016
Amended Credit Facility
Amortization of debt issuance costs	$	—	$	748	$	233
Commitment fee	—		25		415
Interest on borrowings	—		24		877
2017 Term Facility
Amortization of debt issuance costs	—		2,915		—
Interest on borrowings	—		35,327		—
Contingent Interest Derivative	—		2,489		—
Amendment fees paid to third parties	—		5,716		—
Revolving Facility
Amortization of debt issuance costs	—		646		—
Commitment fee	—		494		—
Amendment fees paid to third parties	—		1,662		—
Convertible Senior Notes
Amortization of debt issuance costs	1,294		1,413		1,413
Interest on borrowings	1,578		1,725		1,725
Additional interest on default	191		193		—
Capital leases	964		971		—
Other	884		1,423		2,751
Total	$	4,911	$	55,771	$	7,414

Accumulated Other Comprehensive (Loss) / Income

12 Months Ended

Dec. 31, 2018

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

Accumulated Other Comprehensive (Loss) / Income

11. Accumulated Other Comprehensive (Loss) / Income

The changes in accumulated other comprehensive (loss) income during the year ended December 31, 2018, 2017 and 2016 were as follows:



	Balance at December 31, 2017			Other comprehensive loss			Tax effect		Balance at December 31, 2018
Foreign currency	$	(20,284	)	$	(6,152	)	$	—	$	(26,436	)
Unrealized loss on intra-entity foreign currency transactions	(3,085		)	(1,263		)	442		(3,906		)
Unrealized holding losses on marketable debt securities	(4		)	(37		)	—		(41		)
Total	$	(23,373	)	$	(7,452	)	$	442	$	(30,383	)



	Balance at December 31, 2016			Other comprehensive income		Tax effect			Balance at December 31, 2017
Foreign currency	$	(37,311	)	$	17,027	$	—		$	(20,284	)
Unrealized income (loss) on intra-entity foreign currency transactions	(5,017		)	3,322		(1,390		)	(3,085		)
Unrealized holding gains (losses) on marketable debt securities	(22		)	28		(10		)	(4		)
Total	$	(42,350	)	$	20,377	$	(1,400	)	$	(23,373	)



	Balance at December 31, 2015			Other comprehensive (loss) income			Tax effect			Balance at December 31, 2016
Foreign currency	$	(33,197	)	$	(4,114	)	$	—		$	(37,311	)
Unrealized (loss) income on intra-entity foreign currency transactions	(4,292		)	(789		)	64			(5,017		)
Unrealized holding gains (losses) on marketable debt securities	(25		)	5			(2		)	(22		)
Total	$	(37,514	)	$	(4,898	)	$	62		$	(42,350	)

Capital Structure

12 Months Ended

Dec. 31, 2018

Stockholders' Equity Note [Abstract]

Capital Structure

12. Capital Structure

As of December 31, 2018, the Company’s authorized capital stock was 110 million shares of stock with a par value of $0.0001, of which 100 million shares were designated as common stock and 10 million shares were designated as preferred stock. There were no significant changes to Company’s authorized capital stock and preferred stock during the year ended December 31, 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.

Treasury Stock

On February 4, 2016, the Company announced that the Board of Directors approved a share repurchase program under which the Company may repurchase up to $100.0 million of its outstanding common stock for 12 to 18 months following the announcement. In 2016, the Company repurchased approximately 1.3 million shares of the Company’s common stock under this program for an aggregate repurchase price of $40.0 million. There were no share repurchases in 2017. In 2018, in connection with execution of the Share Purchase Agreement, the Company received 6.0 shares of Synchronoss common stock, which have been recorded as Treasury shares as of December 31, 2018. Additionally, 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.

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.

As of December 31, 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, Silver 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 December 31, 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 December 31, 2018, the Liquidation Value and Redemption Value of the Preferred Shares was $251.9 million.

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.

A summary of the Company’s Series A Convertible Participating Perpetual Preferred Stock balance at December 31, 2018 and changes during the year ended December 31, 2018, are presented below:



	Preferred Stock
	Shares	Amount
Balance at December 31, 2017	—	$	—
Issuance of preferred stock	185	185,000
Initial discount and issuance costs related to preferred stock	—	(19,840		)
Amortization of preferred stock issuance costs	—	1,262
Issuance of preferred PIK dividend	10	10,181
Balance at December 31, 2018	195	$	176,603

Registration Rights

There were no significant changes to Company’s registration rights during the year ended December 31, 2018.

Stock Plans

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Plans

13. Stock Plans

In March 2015, the Company adopted the 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan replaces the Company’s prior 2000 Equity Incentive Plan (the “2000 Plan”) and the 2006 Equity Incentive Plan (the “2006 Plan”) (collectively, the “Plans”). Beginning March 2015, all awards were granted under the 2015 Plan. In addition, any awards that were previously granted under any prior Plans that terminate without issuance of shares, shall be eligible for issuance under the 2015 Plan.

Under the 2015 Plan, the Company may grant to its employees, outside directors and consultants awards in the form of non-qualified stock options, shares of restricted stock, stock units, or stock appreciation rights and performance shares. The Company’s Board of Directors administers the Plan and is responsible for determining the individuals to be granted options or shares, the number of options or shares each individual will receive, the price per share and the exercise period of each option.

During 2017, the Company’s Board of Directors approved the issuance of market-based restricted stock to certain executives which are eligible to vest if the volume-weighted average closing price over 20 consecutive trading days equals or exceeds certain stock prices during the specific performance period from July 2017 to July 2019. The Company utilized the Monte Carlo simulation to estimate the fair value of the restricted stock on its grant date.

In connection with the appointment a new Chief Executive Officer in November 2017, the Company entered into an employment agreement which provided for the grant of restricted stock awards, stock options and performance stock awards. These awards were approved by the Compensation Committee of Synchronoss’ Board of Directors and granted as an inducement equity award outside the 2015 Plan in accordance with the Nasdaq Listing Rule 5635(c)(4) (the “Inducement Rule”).

On December 15, 2017, the Compensation Committee adopted the 2017 New Hire Equity Incentive Plan (“2017 New Hire Plan”), which is intended to be exempt from the stockholder approval requirements under the “inducement grant exception” provided by the Inducement Rule. The Committee authorized the issuance of up to 1.5 million Common Shares to new hires, with the purpose of promoting the long-term success of the Company and the creation of stockholder value by (a) providing for the attraction and retention of new employees with exceptional qualifications, (b) encouraging new employees to focus on critical long-range objectives, and (c) linking new employees directly to stockholder interests through increased stock ownership. As required by the Inducement Rule, the Company issues a press release promptly upon issuing shares to new employees pursuant to the 2017 New Hire Plan.

There were no significant changes to Company’s Stock Plans during the year ended December 31, 2018. As of December 31, 2018, there were zero shares available for the grant or award under the Company’s 2015 Plan and 0.4 million shares available for the grant or award under the Company’s new hire equity incentive plan.

During the year ended December 31, 2018, the Company granted awards to purchase an aggregate of 0.1 million shares under the Company’s 2015 Plan, none of which awards are vested as of December 31, 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 December 31, 2018, the liability for such awards is approximately $0.4 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:



	Twelve Months Ended December 31,
	2018		2017		2016
Cost of revenues	$	4,370	$	4,602	$	7,310
Research and development	6,055		6,030		8,891
Selling, general and administrative	17,179		11,863		17,977
Total stock-based compensation expense	$	27,604	$	22,495	$	34,178

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



	Twelve Months Ended December 31,
	2018		2017		2016
Stock options	$	7,368	$	6,311	$	7,778
Restricted stock awards	20,236		15,802		25,583
Employee Stock Purchase Plan	—		382		817
Total stock-based compensation before taxes	27,604		22,495		34,178
Tax benefit	$	5,387	$	3,921	$	11,108

The total stock-based compensation cost related to unvested equity awards as of December 31, 2018 was approximately $38.7 million. The expense is expected to be recognized over a weighted-average period of approximately 2.36 years.

As part of the work force reduction driven by corporate restructuring initiated in 2016, the Company terminated certain employees in 2017 and accelerated the vesting of certain unvested restricted stock awards and stock options for these employees. The Company accounted for the acceleration of these awards as a result of the restructuring termination as a Type III modification under ASC Topic 718 and recorded a one-time expense of $1.1 million.

In July 2017, the Company modified the terms of performance-based restricted stock awards granted to certain employees in 2015 and 2016 to modify the performance period as the performance targets for 2017 established previously were not considered probable due to the changes in the business driven by significant acquisitions and divestitures by the Company. The modification of the performance-based shares was considered a Type III modification under ASC Topic 718, and as a result, the Company reversed all previously recorded expense for these awards and recorded the new compensation expense over the new requisite service period as a result of the modification. The total incremental compensation expense resulting from these modifications was $2.0 million.

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

Options that were granted under the Company’s 2000, 2006 and 2015 Plans generally vest 25% on the first-year anniversary of the date of grant plus an additional 1/48th for each month of continuous service thereafter.

Options that were granted under the Company’s 2010 Plan generally vest 50% on the second-year anniversary and an additional 1/48th for each month of continuous service thereafter.

Incentive options that were granted under the 2000 and 2006 Plans generally vest 25% on the first-year anniversary on the date of grant and an additional 1/48th for each month of continuous service thereafter.

There were no significant changes to Company’s Stock Option Plans during the year ended December 31, 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:



	Twelve Months Ended December 31,
	2018			2017			2016
Expected stock price volatility	65.5		%	57.0		%	45.0		%
Risk-free interest rate	2.6		%	1.8		%	1.2		%
Expected life of options (in years)	4.13			4.08			4.00
Expected dividend yield	0.0		%	0.0		%	0.0		%
Weighted-average fair value (grant date) of the options	$	4.91		$	6.30		$	11.13

The following table summarizes information about stock options outstanding as of December 31, 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	1,160		9.45
Options Exercised	—		—
Options Cancelled	(856	)	23.10
Outstanding at December 31, 2018	4,254		$	17.93	4.88	$	17
Vested at December 31, 2018	1,816		$	25.51	3.59	$	—
Exercisable at December 31, 2018	1,816		$	25.51	3.59	$	—

The total intrinsic value for stock options exercisable at December 31, 2018 and 2017 was nil for both periods. The total intrinsic value of stock options exercised for the year ended December 31, 2018 and 2017 was nil for both periods.

Awards of Restricted Stock and Performance Stock

Restricted stock awards (“Restricted Stock”) granted under the Company’s Plans generally vest 25% of the applicable shares on the first anniversary of the date of grant and thereafter an additional 1/16th for each three months of continuous service.

Performance stock awards granted under the Company’s 2006 Plan generally vest with respect to one-third of the applicable shares on the date that the performance objectives under the performance stock awards are achieved and thereafter an additional one-third for each year of continuous service.

Generally, performance stock awards granted under the Company’s 2015 Plan vest at the end of a three-year period based on service and achievement of certain performance objectives determined by the Company’s Board of Directors.

There were no significant changes to Company’s restricted stock award (“Restricted Stock”) and performance stock plan during the year ended December 31, 2018 from December 31, 2017.

A summary of the Company’s unvested restricted stock at December 31, 2018, and changes during the year ended December 31, 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	2,015		8.91
Vested	(955	)	24.68
Forfeited	(424	)	16.35
Unvested at December 31, 2018	2,700		$	12.71

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.

Employee Stock Purchase Plan

On February 1, 2012, the Company established a 10 years Employee Stock Purchase Plan (“ESPP” or “the ESPP Plan”) for certain eligible employees. The ESPP Plan is to be administered by the Company’s Board of Directors. The total number of shares available for purchase under the ESPP Plan is 0.5 million shares of the Company’s common stock. Employees participate over a six-month period through payroll withholdings and may purchase, at the end of the six-month period, the Company’s common stock at the lower of 85% of the fair market value on the first day of the offering period or the fair market value on the purchase date. No participant will be granted a right to purchase common stock under the ESPP Plan if such participant would own more than 5% of the total combined voting power of the Company. In addition, no participant may purchase more than a thousand shares of common stock within any purchase period or with a value greater than $25 thousand in any calendar year. The plan was indefinitely suspended on July 27, 2017.

401(k) Plan	12 Months Ended
401(k) Plan	Dec. 31, 2018
Retirement Benefits [Abstract]
401(k) Plan	14. 401(k) Plan The Company has a 401(k) plan (the “401(k) Plan”) covering all eligible employees. The 401(k) Plan allows for a discretionary employer match. The Company incurred and expensed $2.2 million, $2.9 million, and $2.7 million for the years ended December 31, 2018, 2017 and 2016, respectively, in 401(k) Plan match contributions.

Restructuring

12 Months Ended

Dec. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring

15. 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 during the third and fourth quarter of the period ending December 31, 2018. As of December 31, 2018, there were $4.1 million of accrued restructuring charges on the Consolidated Balance Sheets.

A summary of the Company’s restructuring accrual at December 31, 2018 and changes during the year ended December 31, 2018, are presented below:



	Balance at December 31, 2017		Charges		Payments			Other Adjustments¹			Balance at December 31, 2018
Employment termination costs	$	474	$	10,947	$	(10,129	)	$	(16	)	$	1,276
Facilities consolidation	24		1,428		(554		)	1,948			2,846
Total	$	498	$	12,375	$	(10,683	)	$	1,932		$	4,122

_______________________________


⁽¹⁾	Includes non-cash adjustments and reclassifications.

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

16. Income Taxes

The components of income or (loss) from continuing operations before income taxes are as follows:



	Year Ended December 31,
	2018			2017			2016
Domestic	$	(216,589	)	$	(210,214	)	$	(116,730	)
Foreign	(46,585		)	(18,873		)	(10,359		)
Total	$	(263,174	)	$	(229,087	)	$	(127,089	)

The components of income tax (expense) benefit from continuing operations are as follows:



	Year Ended December 31,
	2018			2017			2016
Current:
Federal	$	3,163		$	600		$	4,695
State	116			—			2,098
Foreign	(2,612		)	(4,817		)	(2,743		)
Deferred:
Federal	6,729			40,634			26,074
State	2,214			1,340			1,301
Foreign	8,284			(2,894		)	1,795
Income tax benefit	$	17,894		$	34,863		$	33,220

Reconciliations of the statutory tax rates and the effective tax rates from continuing operations for the years ended December 31, 2018, 2017 and 2016 are as follows:



	Year Ended December 31,
	2018		2017		2016
Statutory rate	21	%	35	%	35	%
State taxes, net of federal benefit	3	%	1	%	3	%
Effect of rates different than statutory	(2	)%	(2	)%	(2	)%
Minority interest	(1	)%	(1	)%	(4	)%
Non-deductible stock based compensation	(2	)%	(2	)%	—	%
Other permanent adjustments	—	%	(2	)%	(1	)%
Research and development credit	—	%	—	%	2	%
Change in valuation allowance	(17	)%	(7	)%	(3	)%
Statute release of uncertain tax position	1	%	—	%	—	%
Other	1	%	(2	)%	(1	)%
Tax Reform Rate Reduction	—	%	(3	)%	—	%
Acquisitions and foreign tax residency changes	3	%	(2	)%	(3	)%
Net	7	%	15	%	26	%

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:



	As of December 31,
	2018			2017

Deferred tax assets:
Accrued liabilities	$	88		$	259
Deferred revenue	13,120			18,721
Bad debts reserve	1,108			1,103
Deferred compensation	4,680			5,635
Federal net operating loss carry forwards	28,193			15,324
State net operating loss carry forwards	7,085			4,940
Foreign net operating loss carry forwards	10,880			10,212
Deferred rent	776			474
Capital loss carry forward	1,689			1,541
Intangible assets	1,318			—
Basis difference	7,632			—
Installment sale	8,819			—
Other	3,508			2,947
Total deferred tax assets	$	88,896		$	61,156

Deferred tax liabilities:
Intangible assets	$	—		$	(12,491	)
Basis difference	—			(6,612		)
Installment sale	—			(8,909		)
Depreciation and amortization	(9,179		)	(14,356		)
Total deferred tax liabilities	(9,179		)	(42,368		)
Less: valuation allowance	(81,064		)	(32,523		)
Net deferred income tax (liabilities) assets	$	(1,347	)	$	(13,735	)

As of December 31, 2018, the Company has federal and state income tax net operating loss (“NOL”) carryforwards of $134.3 million and $112.0 million, respectively, which will expire at various dates from 2019 through 2038. The Company also has foreign NOL carryforwards in various jurisdictions of $84.2 million that have various carryforward periods. Such NOL carryforwards expire as follows:



2019-2023	$	9,975
2024-2028	14,604
2029-2038	187,820
Indefinite	128,778
	$	341,177

In evaluating the Company’s ability to recover its deferred tax assets within the jurisdiction from which they arise, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, the Company begins with historical results and incorporates assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax-planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates the Company is using to manage the underlying businesses.

The foreign NOL carryforwards in the income tax returns filed included unrecognized tax benefits taken in prior years. The NOLs for which a deferred tax asset is recognized for financial statement purposes in accordance with ASC 740 are presented net of these unrecognized tax benefits.

The Company continues to evaluate the ability to realize all of its net deferred tax assets at each reporting date and records a benefit for deferred tax assets to the extent it has deferred tax liabilities that provide a source of income to benefit the deferred tax asset. As a result of this analysis, the Company recorded a valuation allowance against the net deferred tax assets of certain foreign jurisdictions as the realization of these assets is not more likely than not, given uncertainty of future earnings in these jurisdictions.

The Company is subject to taxation in the United States and various states and foreign jurisdictions. As of December 31, 2018, the Company’s tax years for 2015, 2016 and 2017 are subject to examination by the tax authorities. With few exceptions, as of December 31, 2018, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for years before 2014.

The Company is currently under income tax examinations in New Jersey for the tax years 2012 through 2014. The Company does not believe that the results of this audit will have a material effect on its financial position or results of operations.

In 2017, the TCJA included a transition tax based on undistributed, untaxed foreign earnings analyzed in aggregate. The final analysis performed by the Company resulted in an overall untaxed deficit and no transition tax. In addition, no income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. Should the Company decide to repatriate the foreign earnings, it would need to adjust its income tax provision in the period it determined that the earnings will no longer be indefinitely invested outside the United States. Due to the timing and circumstances of repatriation of such earnings, if any, it is not practicable to determine the unrecognized deferred tax liability relating to such amounts.

A reconciliation of the amounts of unrecognized tax benefits excluding interest, are as follows:



Unrecognized tax benefit at December 31, 2015	$	4,278
Decreases for tax positions taken during prior year	(35		)
Reduction due to lapse of applicable statute of limitations	(57		)
Increases for tax positions of current period	399
Unrecognized tax benefit at December 31, 2016	4,585
Increase for tax positions taken during prior year	1,823
Increases related to acquired entities	13,278
Reduction due to lapse of applicable statute of limitations	(1,512		)
Decreases related to divested entities	(13,645		)
Increases for tax positions of current period	1,946
Unrecognized tax benefit at December 31, 2017	6,475
Decrease for tax positions taken during prior year	(567		)
Reduction due to lapse of applicable statute of limitations	(2,657		)
Increases for tax positions of current period	721
Unrecognized tax benefit at December 31, 2018	$	3,972

Included in the balance of unrecognized tax benefits as of the years ended December 31, 2018 and 2017, are $3.5 million and $6.0 million respectively, of tax benefits that, if recognized, would affect the effective tax rate.

The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in interest expense. The liability for unrecognized tax benefits excludes accrued interest of $0.4 million, $0.6 million and $0.2 million, for the years ended December 31, 2018, 2017 and 2016, respectively. The Company believes that it is reasonably possible that approximately $0.7 million of its currently unrecognized tax benefits related to research and development credits, which are individually insignificant, may be recognized by the end of 2019 as a result of a lapse of the statute of limitations.

Earnings per Common Share (EPS)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Earnings per Common Share (EPS)

17. Earnings per Common Share (“EPS”)

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.



	Twelve Months Ended December 31,
	2018			2017			2016
Numerator - Basic:
Net loss from continuing operations	$	(245,280	)	$	(194,224	)	$	(93,869	)
Net loss attributable to redeemable noncontrolling interests	8,837			9,291			15,203
Preferred stock dividend	(25,593		)	—			—
Net (loss) income from continuing operations attributable to Synchronoss	(262,036		)	(184,933		)	(78,666		)

Income from discontinued operations, net of taxes**	18,288			75,495			90,560
Net (loss) income attributable to Synchronoss	$	(243,748	)	$	(109,438	)	$	11,894

Numerator - Diluted:
Net (loss) income from continuing operations attributable to Synchronoss	$	(262,036	)	$	(184,933	)	$	(78,666	)
Income effect for interest on convertible debt, net of tax	—			—			—
Net loss from continuing operations adjusted for the convertible debt	(262,036		)	(184,933		)	(78,666		)

Income from discontinued operations, net of taxes**	18,288			75,495			90,560
Net loss attributable to Synchronoss	$	(243,748	)	$	(109,438	)	$	11,894

Denominator:
Weighted average common shares outstanding — basic	40,277			44,669			43,551
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	40,277			44,669			43,551

Basic EPS
Continuing operations	$	(6.51	)	$	(4.14	)	$	(1.81	)
Discontinued operations**	0.46			1.69			2.08
	$	(6.05	)	$	(2.45	)	$	0.27
Diluted EPS
Continuing operations	$	(6.51	)	$	(4.14	)	$	(1.81	)
Discontinued operations**	0.46			1.69			2.08
	$	(6.05	)	$	(2.45	)	$	0.27

Anti-dilutive stock options excluded	—			—			—
Unvested shares of restricted stock awards	2,700			2,648			1,310

________________________________


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


⁽¹⁾	The calculation does not include the effect of assumed conversion of convertible debt of 3,972,939 shares for 2018 and 4,325,646, for 2017 and 2016, which is based on 18.8072 shares per $1,000 principal amount of the 2019 Notes.


⁽²⁾	The calculation for 2018 period does not include the effect of assumed conversion of preferred stock of 9,312,528 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.

Legal Matters	12 Months Ended
Legal Matters	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	18. Legal Matters 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. 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. Defendants’ motion to dismiss the second consolidated amended complaint is pending before the Court. 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 pending before the Court. On March 7, 2019, Synchronoss shareholders, Beth Daniel and Juan Solis, filed a separate derivative lawsuit against certain of the Company’s officers and directors and the Company (as nominal defendant) in the Court of Chancery of the State of Delaware, asserting substantially the same allegations as those underlying the Derivative Suits and the Securities Law Action described above. 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 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. 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.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	19. Subsequent Events Repayment of Convertible Note On January 10, 2019, the Company repurchased approximately $11.5 million of 2019 Notes for $11.2 million at 3.25% discount.

Additional Financial Information

12 Months Ended

Dec. 31, 2018

Other Income and Expenses [Abstract]

Additional Financial Information

20. Additional Financial Information

Other (expense) income, net

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



	Twelve Months Ended December 31,
	2018			2017			2016
FX gains ⁽¹⁾	$	(478	)	$	(4,952	)	$	(270	)
PIK Note impairment ⁽²⁾	(84,314		)	(14,562		)	—
Litigation settlement ⁽³⁾	4,495			—			—
Remeasurement gain (loss) on financial instrument ⁽⁴⁾	3,849			(4,367		)	—
Divestiture: SpeechCycle ⁽⁵⁾	—			4,947			—
Income from Investment ⁽⁶⁾	519			—			—
Others ⁽⁷⁾	1,012			1,256			1,292
Total	$	(74,917	)	$	(17,678	)	$	1,022

________________________________


⁽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 and $0.3M IP settlement from third parties


⁽⁴⁾	Remeasurement of gain/loss on Mandatorily Redeemable 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⁾	Represents individual transactions that management determined to be immaterial

Summary of Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Results of Operations (Unaudited)

21. Summary of Quarterly Results of Operations (Unaudited)

Quarterly results of operations for 2018 and 2017 are as follows:



	Quarter Ended
	March 31,			June 30,			September 30,			December 31,
2018	(In thousands, except per share data)
Net revenues	$	83,709		$	76,742		$	83,286		$	82,102
Loss from continuing operations	(44,234		)	(43,100		)	(34,629		)	(42,313		)
Net (loss) income	(37,977		)	(41,264		)	(46,644		)	(101,107		)
Net (loss) income attributable to Synchronoss	(40,045		)	(47,265		)	(54,529		)	(101,909		)

Basic:
Continuing operations ⁽¹⁾	$	(0.95	)	$	(1.20	)	$	(1.38	)	$	(3.01	)
Discontinued operations ⁽¹⁾	—			—			—			0.45
	$	(0.95	)	$	(1.20	)	$	(1.38	)	$	(2.56	)
Diluted:
Continuing operations ⁽¹⁾	$	(0.95	)	$	(1.20	)	$	(1.38	)	$	(3.01	)
Discontinued operations ⁽¹⁾	—			—			—			0.45
	$	(0.95	)	$	(1.20	)	$	(1.38	)	$	(2.56	)



	Quarter Ended
	March 31,			June 30,			September 30,			December 31,
2017	(In thousands, except per share data)
Net revenues	$	86,097		$	118,990		$	91,015		$	106,259
Loss from continuing operations	(51,347		)	(8,894		)	(36,139		)	(33,222		)
Net (loss) income	(61,586		)	(29,383		)	(36,364		)	8,604
Net (loss) income attributable to Synchronoss	(58,697		)	(26,568		)	(35,088		)	10,915

Basic:
Continuing operations ⁽¹⁾	$	(0.96	)	$	(0.44	)	$	(0.98	)	$	(1.75	)
Discontinued operations ⁽¹⁾	(0.37		)	(0.16		)	0.20			1.99
	$	(1.33	)	$	(0.60	)	$	(0.78	)	$	0.24
Diluted:
Continuing operations ⁽¹⁾	$	(0.96	)	$	(0.44	)	$	(0.98	)	$	(1.75	)
Discontinued operations ⁽¹⁾	(0.37		)	(0.16		)	0.20			1.99
	$	(1.33	)	$	(0.60	)	$	(0.78	)	$	0.24

________________________________


⁽¹⁾	Per common share amounts for the quarters and full year have been calculated separately. Accordingly, quarterly amounts do not add to the annual amount because of differences in the number of weighted-average common shares outstanding during each period which results principally from the effect of issuing shares of the Company’s common stock and options throughout the year.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2018

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

VALUATION AND QUALIFYING ACCOUNTS

December 31, 2018, 2017, 2016



	Beginning Balance		Additions		Reductions			Ending Balance
	(In thousands)
Allowance for doubtful receivables:
2018	$	3,107	$	13,982	$	(12,490	)	$	4,599
2017	$	1,459	$	7,590	$	(5,942	)	$	3,107
2016	$	1,189	$	10,201	$	(9,931	)	$	1,459



	Beginning Balance		Additions		Reductions		Ending Balance
	(In thousands)
Allowance for loan loss:
2018	$	14,562	$	84,314	$	—	$	98,876
2017	$	—	$	14,562	$	—	$	14,562



	Beginning Balance		Additions		Reductions			Ending Balance
	(In thousands)
Valuation allowance for deferred tax assets:
2018	$	32,523	$	49,610	$	(1,069	)	$	81,064
2017	$	14,180	$	23,370	$	(5,027	)	$	32,523
2016	$	10,804	$	3,783	$	(407	)	$	14,180

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Consolidation

Use of Estimates

Revenue Recognition and Deferred Revenue

Deferred Revenue

Service Level Standards

Cost of Revenues

Research and Development, Internal-Use

Research and Development

Research and Development, Software to be Sold, Leased, or Otherwise Marketed

Research and Development

Concentration of Credit Risk

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents.

Restricted Cash

Accounts Receivable

Fair Value of Financial Instruments and Liabilities


•	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.

Derivatives

Allowance for Doubtful Accounts

Property and Equipment

Noncontrolling Interests and Mandatorily Redeemable Financial Instruments

Business Combinations

Discontinued Operations

Investments in Affiliates and Other Entities

Allowance for Loan Losses

Impairment of Long-Lived Assets

Income Taxes

Foreign Currency

Gains or losses resulting from transactions denominated in foreign currencies are included in other income or expense

Comprehensive Income (Loss)

Basic and Diluted Net Income Attributable to Common Stockholders per Common Share

Basic EPS is computed based upon the weighted average number of common shares outstanding for the year, excluding amounts associated with restricted shares.

Stock-based Compensation

Stock-Based Compensation

As of December 31, 2018, the Company maintains eight stock-based compensation plans.

Segment and Geographic Information

Revenues by geography are based on the billing addresses of the Company’s customers.

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 consolidated financial statements as of the date of adoption.
Date of adoption: January 1, 2018.

Revenue

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)	Within 90 days of the start 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

Trade Accounts Receivable and Contract balances

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

Contract acquisition costs

Contract Fulfillment Costs

Transaction price allocated to the remaining performance obligations


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;

•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

Standards issued not yet adopted

Leases



Standard	Description	Effect on the financial statements
Update 2018-17-Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities	For entities other than private companies, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments in this Update are effective for a private company for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. All entities are required to apply the amendments in this Update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. Early adoption is permitted.	The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements.
Date of adoption: January 1, 2020.
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 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 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 consolidated financial statements.
Date of adoption: January 1, 2020.

Segment and Geographic Information

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Software development costs

The unamortized software development costs and amortization expense were as follows:



	Year ended December 31,
	2018		2017		2016
Unamortized software development costs	$	17,490	$	11,695	$	5,754
Software development amortization expense	8,123		3,178		3,507

Schedule of foreign currency gains (losses)

Gains or losses resulting from transactions denominated in foreign currencies are included in other income or expense, within the Consolidated Statements of Operations and were as follows:



	Year ended December 31,
	2018			2017			2016
Net loss on foreign currency translations	$	(478	)	$	(4,952	)	$	(270	)

Typical remaining performance obligations

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)	Within 90 days of the start 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



	Twelve Months Ended December 31, 2018								Twelve Months Ended December 31, 2017
	Cloud		Digital		Messaging		Total		Cloud		Digital		Messaging		Total
Geography
Americas	$	153,649	$	86,422	$	9,603	$	249,674	$	224,058	$	106,629	$	8,809	$	339,496
APAC	—		5,954		35,397		41,351		—		6,506		23,208		29,714
EMEA	8,921		7,018		18,875		34,814		7,283		3,992		21,876		33,151
Total	$	162,570	$	99,394	$	63,875	$	325,839	$	231,341	$	117,127	$	53,893	$	402,361

Service Line
Professional Services	$	14,232	$	18,383	$	11,539	$	44,154	$	29,211	$	24,150	$	5,292	$	58,653
Transaction Services	9,025		9,706		—		18,731		11,831		19,024		—		30,855
Subscription Services	139,100		67,623		33,071		239,794		180,304		62,621		28,627		271,552
License	213		3,682		19,265		23,160		9,995		11,332		19,974		41,301
Total	$	162,570	$	99,394	$	63,875	$	325,839	$	231,341	$	117,127	$	53,893	$	402,361

Significant changes in the contract liabilities balance

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	(262,709		)
Amounts billed but not recognized as revenue	264,642
Balance - December 31, 2018	$	116,942

________________________________


*	Comprised of Deferred Revenue

Impact of new accounting standard

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



	December 31, 2018
	As Reported			Impacts of the New Revenue Standard			Adjusted amounts under prior GAAP
ASSETS
Current assets:
Cash and cash equivalents	$	103,771		$	—		$	103,771
Restricted cash**	6,089			—			6,089
Marketable securities, current	28,230			—			28,230
Accounts receivable, net ⁽¹⁾	102,798			8,027			94,771
Prepaid expenses	45,058			—			45,058
Other current assets ⁽²⁾	8,508			(641		)	9,149
Total current assets	294,454			7,386			287,068
Marketable securities, non-current	6,658			—			6,658
Property and equipment, net	67,937			—			67,937
Goodwill	224,899			—			224,899
Intangible assets, net	98,706			—			98,706
Deferred tax assets	—			—			—
Other assets ⁽²⁾	8,982			320			8,662
Equity method investment	1,619			—			1,619
Total assets	$	703,255		$	7,706		$	695,549

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	13,576		$	—		$	13,576
Accrued expenses	59,545			—			59,545
Deferred revenues, current ⁽³⁾	57,101			(12,134		)	69,235
Short-term convertible debt, net of debt issuance costs	113,542			—			113,542
Total current liabilities	243,764			(12,134		)	255,898
Lease financing obligation	9,494			—			9,494
Deferred tax liabilities	1,347			—			1,347
Deferred revenues, non-current ⁽³⁾	59,841			1,869			57,972
Other liabilities	10,797			—			10,797
Redeemable noncontrolling interest	12,500			—			12,500
Commitments and contingencies (Note 9)
Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 195 shares issued and outstanding at December 31, 2018	176,603			—			176,603
Stockholders’ equity:
Common stock, $0.0001 par value; 100,000 shares authorized, 49,836 and 52,024 shares issued; 42,674 and 46,965 outstanding at December 31, 2018 and December 31, 2017, respectively	5			—			5
Treasury stock, at cost (7,162 and 5,059 shares at December 31, 2018 and December 31, 2017, respectively)	(82,087		)	—			(82,087		)
Additional paid-in capital	534,673			—			534,673
Accumulated other comprehensive loss ⁽⁴⁾	(30,383		)	35			(30,418		)
Accumulated deficit	(233,299		)	17,936			(251,235		)
Total stockholders’ equity	188,909			17,971			170,938
Total liabilities and stockholders’ equity	$	703,255		$	7,706		$	695,549

________________________________


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



	Twelve Months Ended December 31, 2018
	As Reported			Impacts of the New Revenue Standard			Adjusted amounts under prior GAAP
Net revenues ⁽³⁾	$	325,839		$	29,367		$	296,472
Costs and expenses:
Cost of revenues* ⁽⁵⁾	158,802			841			157,961
Research and development	79,172			—			79,172
Selling, general and administrative ⁽²⁾	122,112			202			121,910
Restructuring charges	12,375			—			12,375
Depreciation and amortization	117,654			—			117,654
Total costs and expenses	490,115			1,043			489,072
Loss from continuing operations	(164,276		)	28,324			(192,600		)
Interest income	7,770			—			7,770
Interest expense	(4,911		)	(138		)	(4,773		)
Gain on extinguishment of debt	1,760			—			1,760
Other expense, net	(74,917		)	(120		)	(74,797		)
Equity method investment loss, net	(28,600		)	—			(28,600		)
Loss from continuing operations, before taxes	(263,174		)	28,066			(291,240		)
Benefit for income taxes	17,894			—			17,894
Net loss from continuing operations	(245,280		)	28,066			(273,346		)
Net income from discontinued operations, net of tax**	18,288			—			18,288
Net loss	(226,992		)	28,066			(255,058		)
Net loss attributable to redeemable noncontrolling interests	8,837			—			8,837
Preferred stock dividend	(25,593		)	—			(25,593		)
Net loss attributable to Synchronoss	$	(243,748	)	$	28,066		$	(271,814	)

Basic:
Continuing operations	$	(6.51	)	$	0.69		$	(7.20	)
Discontinued operations**	0.46			—			0.46
	$	(6.05	)	$	0.69		$	(6.74	)
Diluted:
Continuing operations	$	(6.51	)	$	0.69		$	(7.20	)
Discontinued operations**	0.46			—			0.46
	$	(6.05	)	$	0.69		$	(6.74	)
Weighted-average common shares outstanding:
Basic	40,277						40,277
Diluted	40,277						40,277

________________________________


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


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


⁽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	28,066
Impact on Retained Earnings at December 31, 2018	$	17,936

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 consolidated financial statements as of the date of adoption.
Date of adoption: January 1, 2018.



Standard	Description	Effect on the financial statements
Update 2018-17-Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities	For entities other than private companies, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments in this Update are effective for a private company for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. All entities are required to apply the amendments in this Update retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. Early adoption is permitted.	The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements.
Date of adoption: January 1, 2020.
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 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 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 consolidated financial statements.
Date of adoption: January 1, 2020.

Schedule of revenues and property and equipment, net by geographic area

Revenues by geography are based on the billing addresses of the Company’s customers. The following tables set forth revenues and property and equipment, net by geographic area:



	Year Ended December 31,
	2018		2017		2016
Revenues
Domestic	$	249,674	$	334,970	$	360,891
Foreign	76,165		67,391		65,403
Total	$	325,839	$	402,361	$	426,294



	Year Ended December 31,
	2018		2017
Property and equipment, net:
Domestic	$	59,054	$	106,727
Foreign	8,883		5,098
Total	$	67,937	$	111,825

Acquisitions and Divestitures (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Summary of the components of the consideration transferred

The following is a summary of the components of the consideration transferred as part of the acquisition:



Cash consideration for outstanding Intralinks’ common shares	$	746,071
Cash consideration for accelerated equity awards to Intralinks’ employees upon change in control	7,873
Cash consideration for vested unexercised Intralinks’ stock options	19,838
Cash consideration for existing Intralinks’ debt	77,800
Cash consideration for shareholders purchase price settlement	2,794
Total cash consideration transferred	854,376
Fair value of replacement awards	4,702
Total consideration transferred	$	859,078

Purchase price allocation

The purchase price allocation as of the date of the acquisition was as follows:



	Weighted Average Life in Years	Purchase Price Allocation
Cash		$	39,370
Accounts receivable		46,182
Prepaid expenses and other assets		9,775
Property and equipment, net	4	14,075
Goodwill		482,822
Intangible Assets:
Developed technology	6	79,400
Capitalized software costs	1	277
Trade name	18	47,800
Customer relationships	10	284,100
		411,577
Other assets, long-term		3,865
Investment in unconsolidated affiliate		5,800
Total assets acquired		1,013,466

Accounts payable		4,853
Accrued expenses		21,421
Deferred revenues, short-term		12,449
Deferred tax liability		110,044
Deferred revenues, long-term		1,051
Other liabilities, long-term		4,570
Total liabilities		154,388
Net assets acquired		$	859,078

Summary of operating results of Intralinks

The following is a summary of the operating results of Intralinks during the year ended December 31, 2017, which have been reflected within income from discontinued operations, net of tax:



	2017
Net revenues	$	213,178
Costs and expenses:
Cost of services	35,393
Research and development	19,148
Selling, general and administrative	114,737
Restructuring	15,995
Depreciation and amortization	41,780
Total costs and expenses	227,053
Other income, net	1,448
Loss from discontinued operations	(12,427		)
Gain on sale of discontinued operations	122,842
Income from discontinued operations before taxes	110,415
Provision for income taxes	(34,920		)
Discontinued operations, net of taxes	$	75,495

Fair Value Measurements of Assets and Liabilities

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

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:



	December 31, 2018
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash, cash equivalents and restricted cash ⁽¹⁾	$	109,860	$	109,860	$	—	$	—
Marketable securities-short term ⁽²⁾	28,230		—		28,230		—
Marketable securities-long term ⁽²⁾	6,658		—		6,658		—
Total assets	$	144,748	$	109,860	$	34,888	$	—
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, certificates of deposit. corporate bonds, treasury bonds, and mutual funds.


⁽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 10 - Debt.

⁽⁵⁾

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

At December 31, 2018 and December 31, 2017, the estimated fair value of investments in marketable debt securities, were as follows:



	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities - debt:
Certificates of deposit	$	3,776	$	—	$	(16	)	$	3,760
Corporate bonds	402		—		(1		)	401
Municipal bonds	10,913		—		(32		)	10,881
Treasury bonds	15,685		—		—			15,685
Total	$	30,776	$	—	$	(49	)	$	30,727



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

Expected maturities

The contractual maturities of marketable debt securities were as follows:



	December 31, 2018
	Amortized Cost		Fair Value
Due within one year	$	24,093	$	24,069
Due after 1 year through 5 years	6,328		6,304
Due after 5 years through 10 years	355		354
Due after 10 years	—		—
Total marketable securities - debt	$	30,776	$	30,727

Estimated fair value of investments in marketable equity securities

At December 31, 2018 and December 31, 2017, the estimated fair value of investments in marketable equity securities, were as follows:



Balance at December 31, 2017	$	—
Mutual funds purchases	4,161
Realized gains (losses)	—
Balance at December 31, 2018	$	4,161

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 year ended December 31, 2018 were as follows:



Balance at December 31, 2017	$	25,280
Fair value adjustment	(3,943		)
Net loss attributable to redeemable noncontrolling interests	(8,837		)
Balance at December 31, 2018	$	12,500

Investments in Affiliates and Related Transactions (Tables)

12 Months Ended

Dec. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The STIN affiliate balances and their classification in the Consolidated Balance Sheet as of December 31, 2018, were as follows:



	December 31, 2018		December 31, 2017
Restricted cash ^(A)	$	—	$	118
Accounts receivable ^(B)	27,532		18,033
Total assets	$	27,532	$	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 December 31, 2018 and December 31, 2017, respectively. This amount has been classified in short-term restricted cash and in accrued expenses on the 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.

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	)	$	(12,162	)	$	11,096	$	6,187	$	425	$	73,984
Activity	—		(84,314		)	438			6,103		3,293		496		(73,984		)
December 31, 2018	$	83,000	$	(98,876	)	$	(11,724	)	$	17,199	$	9,480	$	921	$	—

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Summary of property and equipment

Property and equipment consist of the following:



	December 31,
	2018			2017
Computer hardware	$	246,373		$	250,453
Computer software	64,530			62,335
Construction in-progress	651			471
Furniture and fixtures	9,408			7,736
Building	8,808			8,808
Leasehold improvements	23,602			19,591
	353,372			349,394
Less: Accumulated depreciation	(285,435		)	(237,569		)
	$	67,937		$	111,825

Goodwill and Intangibles (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in goodwill

The following table shows the adjustments to goodwill during 2018 and 2017:



Balance at December 31, 2016	$	224,651
Divestitures	(1,854		)
Reclassifications adjustments and other	181
Translation adjustments	14,325
Balance at December 31, 2017	$	237,303
Acquisitions	2,156
Impairment	(9,100		)
Reclassifications adjustments and other	—
Translation adjustments	(5,460		)
Balance at December 31, 2018	$	224,899

Schedule of composition of intangible assets

The Company’s intangible assets consist of the following:



	December 31, 2018
	Cost		Accumulated Amortization			Net
Technology	$	100,896	$	(73,271	)	$	27,625
Customer lists and relationships	127,755		(75,123		)	52,632
Capitalized software and patents	33,710		(15,261		)	18,449
Trade name	2,546		(2,546		)	—
	$	264,907	$	(166,201	)	$	98,706



	December 31, 2017
	Cost		Accumulated Amortization			Net
Technology	$	124,799	$	(70,608	)	$	54,191
Customer lists and relationships	128,170		(62,905		)	65,265
Capitalized software and patents	19,792		(7,115		)	12,677
Trade name	2,559		(2,525		)	34
	$	275,320	$	(143,153	)	$	132,167

Schedule of estimated annual amortization expense of intangible assets for the next five years

Estimated future amortization expense of its intangible assets for the next five years is as follows:



Year ending December 31,
2019	$	31,954
2020	20,107
2021	12,902
2022	10,168
2023	5,846
Thereafter	17,729
Total	$	98,706

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

Schedule of components of accrued expenses

Accrued expenses consist of the following:



	December 31,
	2018		2017
Accrued compensation and benefits	$	26,840	$	22,679
Accrued professional service fees	8,177		31,535
Accrued telecommunications	1,758		3,028
Accrued income taxes payable	1,394		2,810
Accrued preferred dividend	7,075		—
Accrued other	14,301		12,687
Total	$	59,545	$	72,739

Commitments, Contingencies and Other (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of aggregate annual future minimum lease payments under non-cancelable leases

Aggregate annual future minimum payments under these non-cancelable agreements are as follows:



Year ending December 31,	Colocation		Operating Leases		Capital Leases
2019	$	18,868	$	10,563	$	2,627
2020	18,426		11,413		1,594
2021	43		10,533		1,594
2022	—		10,014		1,594
2023 and thereafter	—		37,954		7,438
	$	37,337	$	80,477	$	14,847

Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of Debt

Total debt consists of the following:



	December 31, 2018			December 31, 2017
Convertible Senior Notes	$	113,980		$	230,000
Unamortized debt issuance cost ⁽¹⁾	(438		)	(2,296		)
Total debt, carrying value	$	113,542		$	227,704
Total short-term debt, carrying value	$	113,542		$	—
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:



	Twelve Months Ended December 31,
	2018		2017		2016
Amended Credit Facility
Amortization of debt issuance costs	$	—	$	748	$	233
Commitment fee	—		25		415
Interest on borrowings	—		24		877
2017 Term Facility
Amortization of debt issuance costs	—		2,915		—
Interest on borrowings	—		35,327		—
Contingent Interest Derivative	—		2,489		—
Amendment fees paid to third parties	—		5,716		—
Revolving Facility
Amortization of debt issuance costs	—		646		—
Commitment fee	—		494		—
Amendment fees paid to third parties	—		1,662		—
Convertible Senior Notes
Amortization of debt issuance costs	1,294		1,413		1,413
Interest on borrowings	1,578		1,725		1,725
Additional interest on default	191		193		—
Capital leases	964		971		—
Other	884		1,423		2,751
Total	$	4,911	$	55,771	$	7,414

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

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.

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+ Details

Accumulated Other Comprehensive (Loss) / Income (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of changes in accumulated other comprehensive income (loss)

The changes in accumulated other comprehensive (loss) income during the year ended December 31, 2018, 2017 and 2016 were as follows:



	Balance at December 31, 2017			Other comprehensive loss			Tax effect		Balance at December 31, 2018
Foreign currency	$	(20,284	)	$	(6,152	)	$	—	$	(26,436	)
Unrealized loss on intra-entity foreign currency transactions	(3,085		)	(1,263		)	442		(3,906		)
Unrealized holding losses on marketable debt securities	(4		)	(37		)	—		(41		)
Total	$	(23,373	)	$	(7,452	)	$	442	$	(30,383	)



	Balance at December 31, 2016			Other comprehensive income		Tax effect			Balance at December 31, 2017
Foreign currency	$	(37,311	)	$	17,027	$	—		$	(20,284	)
Unrealized income (loss) on intra-entity foreign currency transactions	(5,017		)	3,322		(1,390		)	(3,085		)
Unrealized holding gains (losses) on marketable debt securities	(22		)	28		(10		)	(4		)
Total	$	(42,350	)	$	20,377	$	(1,400	)	$	(23,373	)



	Balance at December 31, 2015			Other comprehensive (loss) income			Tax effect			Balance at December 31, 2016
Foreign currency	$	(33,197	)	$	(4,114	)	$	—		$	(37,311	)
Unrealized (loss) income on intra-entity foreign currency transactions	(4,292		)	(789		)	64			(5,017		)
Unrealized holding gains (losses) on marketable debt securities	(25		)	5			(2		)	(22		)
Total	$	(37,514	)	$	(4,898	)	$	62		$	(42,350	)

Capital Structure (Tables)

12 Months Ended

Dec. 31, 2018

Stockholders' Equity Note [Abstract]

Series A preferred stock

A summary of the Company’s Series A Convertible Participating Perpetual Preferred Stock balance at December 31, 2018 and changes during the year ended December 31, 2018, are presented below:



	Preferred Stock
	Shares	Amount
Balance at December 31, 2017	—	$	—
Issuance of preferred stock	185	185,000
Initial discount and issuance costs related to preferred stock	—	(19,840		)
Amortization of preferred stock issuance costs	—	1,262
Issuance of preferred PIK dividend	10	10,181
Balance at December 31, 2018	195	$	176,603

Stock Plans (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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:



	Twelve Months Ended December 31,
	2018		2017		2016
Cost of revenues	$	4,370	$	4,602	$	7,310
Research and development	6,055		6,030		8,891
Selling, general and administrative	17,179		11,863		17,977
Total stock-based compensation expense	$	27,604	$	22,495	$	34,178

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



	Twelve Months Ended December 31,
	2018		2017		2016
Stock options	$	7,368	$	6,311	$	7,778
Restricted stock awards	20,236		15,802		25,583
Employee Stock Purchase Plan	—		382		817
Total stock-based compensation before taxes	27,604		22,495		34,178
Tax benefit	$	5,387	$	3,921	$	11,108

Schedule of fair value assumptions

The weighted-average assumptions used in the Black-Scholes option pricing model are as follows:



	Twelve Months Ended December 31,
	2018			2017			2016
Expected stock price volatility	65.5		%	57.0		%	45.0		%
Risk-free interest rate	2.6		%	1.8		%	1.2		%
Expected life of options (in years)	4.13			4.08			4.00
Expected dividend yield	0.0		%	0.0		%	0.0		%
Weighted-average fair value (grant date) of the options	$	4.91		$	6.30		$	11.13

Schedule of information about stock options outstanding

The following table summarizes information about stock options outstanding as of December 31, 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	1,160		9.45
Options Exercised	—		—
Options Cancelled	(856	)	23.10
Outstanding at December 31, 2018	4,254		$	17.93	4.88	$	17
Vested at December 31, 2018	1,816		$	25.51	3.59	$	—
Exercisable at December 31, 2018	1,816		$	25.51	3.59	$	—

Summary of unvested restricted stock activity

A summary of the Company’s unvested restricted stock at December 31, 2018, and changes during the year ended December 31, 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	2,015		8.91
Vested	(955	)	24.68
Forfeited	(424	)	16.35
Unvested at December 31, 2018	2,700		$	12.71

Restructuring (Tables)

12 Months Ended

Dec. 31, 2018

Restructuring and Related Activities [Abstract]

Summary of the restructuring accrual and changes

A summary of the Company’s restructuring accrual at December 31, 2018 and changes during the year ended December 31, 2018, are presented below:



	Balance at December 31, 2017		Charges		Payments			Other Adjustments¹			Balance at December 31, 2018
Employment termination costs	$	474	$	10,947	$	(10,129	)	$	(16	)	$	1,276
Facilities consolidation	24		1,428		(554		)	1,948			2,846
Total	$	498	$	12,375	$	(10,683	)	$	1,932		$	4,122

_______________________________


⁽¹⁾	Includes non-cash adjustments and reclassifications.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of components of income before income taxes

The components of income or (loss) from continuing operations before income taxes are as follows:



	Year Ended December 31,
	2018			2017			2016
Domestic	$	(216,589	)	$	(210,214	)	$	(116,730	)
Foreign	(46,585		)	(18,873		)	(10,359		)
Total	$	(263,174	)	$	(229,087	)	$	(127,089	)

Schedule of components of income tax (expense) benefit

The components of income tax (expense) benefit from continuing operations are as follows:



	Year Ended December 31,
	2018			2017			2016
Current:
Federal	$	3,163		$	600		$	4,695
State	116			—			2,098
Foreign	(2,612		)	(4,817		)	(2,743		)
Deferred:
Federal	6,729			40,634			26,074
State	2,214			1,340			1,301
Foreign	8,284			(2,894		)	1,795
Income tax benefit	$	17,894		$	34,863		$	33,220

Schedule of reconciliations of the statutory tax rates and the effective tax rates

Reconciliations of the statutory tax rates and the effective tax rates from continuing operations for the years ended December 31, 2018, 2017 and 2016 are as follows:



	Year Ended December 31,
	2018		2017		2016
Statutory rate	21	%	35	%	35	%
State taxes, net of federal benefit	3	%	1	%	3	%
Effect of rates different than statutory	(2	)%	(2	)%	(2	)%
Minority interest	(1	)%	(1	)%	(4	)%
Non-deductible stock based compensation	(2	)%	(2	)%	—	%
Other permanent adjustments	—	%	(2	)%	(1	)%
Research and development credit	—	%	—	%	2	%
Change in valuation allowance	(17	)%	(7	)%	(3	)%
Statute release of uncertain tax position	1	%	—	%	—	%
Other	1	%	(2	)%	(1	)%
Tax Reform Rate Reduction	—	%	(3	)%	—	%
Acquisitions and foreign tax residency changes	3	%	(2	)%	(3	)%
Net	7	%	15	%	26	%

Schedule of significant components of the Company's deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:



	As of December 31,
	2018			2017

Deferred tax assets:
Accrued liabilities	$	88		$	259
Deferred revenue	13,120			18,721
Bad debts reserve	1,108			1,103
Deferred compensation	4,680			5,635
Federal net operating loss carry forwards	28,193			15,324
State net operating loss carry forwards	7,085			4,940
Foreign net operating loss carry forwards	10,880			10,212
Deferred rent	776			474
Capital loss carry forward	1,689			1,541
Intangible assets	1,318			—
Basis difference	7,632			—
Installment sale	8,819			—
Other	3,508			2,947
Total deferred tax assets	$	88,896		$	61,156

Deferred tax liabilities:
Intangible assets	$	—		$	(12,491	)
Basis difference	—			(6,612		)
Installment sale	—			(8,909		)
Depreciation and amortization	(9,179		)	(14,356		)
Total deferred tax liabilities	(9,179		)	(42,368		)
Less: valuation allowance	(81,064		)	(32,523		)
Net deferred income tax (liabilities) assets	$	(1,347	)	$	(13,735	)

Schedule of net operating loss carryforwards

Such NOL carryforwards expire as follows:



2019-2023	$	9,975
2024-2028	14,604
2029-2038	187,820
Indefinite	128,778
	$	341,177

Schedule of reconciliation of the amounts ofunrecognized tax benefits excluding interest

A reconciliation of the amounts of unrecognized tax benefits excluding interest, are as follows:



Unrecognized tax benefit at December 31, 2015	$	4,278
Decreases for tax positions taken during prior year	(35		)
Reduction due to lapse of applicable statute of limitations	(57		)
Increases for tax positions of current period	399
Unrecognized tax benefit at December 31, 2016	4,585
Increase for tax positions taken during prior year	1,823
Increases related to acquired entities	13,278
Reduction due to lapse of applicable statute of limitations	(1,512		)
Decreases related to divested entities	(13,645		)
Increases for tax positions of current period	1,946
Unrecognized tax benefit at December 31, 2017	6,475
Decrease for tax positions taken during prior year	(567		)
Reduction due to lapse of applicable statute of limitations	(2,657		)
Increases for tax positions of current period	721
Unrecognized tax benefit at December 31, 2018	$	3,972

Earnings per Common Share (Tables)

12 Months Ended

Dec. 31, 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



	Twelve Months Ended December 31,
	2018			2017			2016
Numerator - Basic:
Net loss from continuing operations	$	(245,280	)	$	(194,224	)	$	(93,869	)
Net loss attributable to redeemable noncontrolling interests	8,837			9,291			15,203
Preferred stock dividend	(25,593		)	—			—
Net (loss) income from continuing operations attributable to Synchronoss	(262,036		)	(184,933		)	(78,666		)

Income from discontinued operations, net of taxes**	18,288			75,495			90,560
Net (loss) income attributable to Synchronoss	$	(243,748	)	$	(109,438	)	$	11,894

Numerator - Diluted:
Net (loss) income from continuing operations attributable to Synchronoss	$	(262,036	)	$	(184,933	)	$	(78,666	)
Income effect for interest on convertible debt, net of tax	—			—			—
Net loss from continuing operations adjusted for the convertible debt	(262,036		)	(184,933		)	(78,666		)

Income from discontinued operations, net of taxes**	18,288			75,495			90,560
Net loss attributable to Synchronoss	$	(243,748	)	$	(109,438	)	$	11,894

Denominator:
Weighted average common shares outstanding — basic	40,277			44,669			43,551
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	40,277			44,669			43,551

Basic EPS
Continuing operations	$	(6.51	)	$	(4.14	)	$	(1.81	)
Discontinued operations**	0.46			1.69			2.08
	$	(6.05	)	$	(2.45	)	$	0.27
Diluted EPS
Continuing operations	$	(6.51	)	$	(4.14	)	$	(1.81	)
Discontinued operations**	0.46			1.69			2.08
	$	(6.05	)	$	(2.45	)	$	0.27

Anti-dilutive stock options excluded	—			—			—
Unvested shares of restricted stock awards	2,700			2,648			1,310

________________________________


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


⁽¹⁾	The calculation does not include the effect of assumed conversion of convertible debt of 3,972,939 shares for 2018 and 4,325,646, for 2017 and 2016, which is based on 18.8072 shares per $1,000 principal amount of the 2019 Notes.


⁽²⁾	The calculation for 2018 period does not include the effect of assumed conversion of preferred stock of 9,312,528 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)

12 Months Ended

Dec. 31, 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 Consolidated Statements of Operations:



	Twelve Months Ended December 31,
	2018			2017			2016
FX gains ⁽¹⁾	$	(478	)	$	(4,952	)	$	(270	)
PIK Note impairment ⁽²⁾	(84,314		)	(14,562		)	—
Litigation settlement ⁽³⁾	4,495			—			—
Remeasurement gain (loss) on financial instrument ⁽⁴⁾	3,849			(4,367		)	—
Divestiture: SpeechCycle ⁽⁵⁾	—			4,947			—
Income from Investment ⁽⁶⁾	519			—			—
Others ⁽⁷⁾	1,012			1,256			1,292
Total	$	(74,917	)	$	(17,678	)	$	1,022

________________________________


⁽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 and $0.3M IP settlement from third parties


⁽⁴⁾	Remeasurement of gain/loss on Mandatorily Redeemable 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⁾	Represents individual transactions that management determined to be immaterial

Summary of Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

Quarterly results of operations for 2018 and 2017 are as follows:



	Quarter Ended
	March 31,			June 30,			September 30,			December 31,
2018	(In thousands, except per share data)
Net revenues	$	83,709		$	76,742		$	83,286		$	82,102
Loss from continuing operations	(44,234		)	(43,100		)	(34,629		)	(42,313		)
Net (loss) income	(37,977		)	(41,264		)	(46,644		)	(101,107		)
Net (loss) income attributable to Synchronoss	(40,045		)	(47,265		)	(54,529		)	(101,909		)

Basic:
Continuing operations ⁽¹⁾	$	(0.95	)	$	(1.20	)	$	(1.38	)	$	(3.01	)
Discontinued operations ⁽¹⁾	—			—			—			0.45
	$	(0.95	)	$	(1.20	)	$	(1.38	)	$	(2.56	)
Diluted:
Continuing operations ⁽¹⁾	$	(0.95	)	$	(1.20	)	$	(1.38	)	$	(3.01	)
Discontinued operations ⁽¹⁾	—			—			—			0.45
	$	(0.95	)	$	(1.20	)	$	(1.38	)	$	(2.56	)



	Quarter Ended
	March 31,			June 30,			September 30,			December 31,
2017	(In thousands, except per share data)
Net revenues	$	86,097		$	118,990		$	91,015		$	106,259
Loss from continuing operations	(51,347		)	(8,894		)	(36,139		)	(33,222		)
Net (loss) income	(61,586		)	(29,383		)	(36,364		)	8,604
Net (loss) income attributable to Synchronoss	(58,697		)	(26,568		)	(35,088		)	10,915

Basic:
Continuing operations ⁽¹⁾	$	(0.96	)	$	(0.44	)	$	(0.98	)	$	(1.75	)
Discontinued operations ⁽¹⁾	(0.37		)	(0.16		)	0.20			1.99
	$	(1.33	)	$	(0.60	)	$	(0.78	)	$	0.24
Diluted:
Continuing operations ⁽¹⁾	$	(0.96	)	$	(0.44	)	$	(0.98	)	$	(1.75	)
Discontinued operations ⁽¹⁾	(0.37		)	(0.16		)	0.20			1.99
	$	(1.33	)	$	(0.60	)	$	(0.78	)	$	0.24

________________________________


⁽¹⁾	Per common share amounts for the quarters and full year have been calculated separately. Accordingly, quarterly amounts do not add to the annual amount because of differences in the number of weighted-average common shares outstanding during each period which results principally from the effect of issuing shares of the Company’s common stock and options throughout the year.

Summary of Significant Accounting Policies - Narrative (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Decrease in restricted cash									$ 87,300,000
Mandatorily redeemable financial instrument	$ 0				$ 37,959,000				0	$ 37,959,000
Unbilled receivables	4,500,000				7,400,000				4,500,000	7,400,000
Net revenues	82,102,000	$ 83,286,000	$ 76,742,000	$ 83,709,000	106,259,000	$ 91,015,000	$ 118,990,000	$ 86,097,000	325,839,000	402,361,000	$ 426,294,000
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reduction to retained earnings	233,299,000				5,014,000				233,299,000	5,014,000
Net revenues									325,839,000	402,361,000
Accounting Standards Update 2014-09 \| Impacts of the New Revenue Standard
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net revenues									29,367,000
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reduction to retained earnings	(17,936,000)				10,100,000				$ (17,936,000)	10,100,000
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property and equipment, useful life									3 years
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property and equipment, useful life									5 years
Contract Acquisition Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Capitalized contract cost					$ 700,000					$ 700,000
Amortization of capitalized contract cost									$ 200,000
Impairment of capitalized contract cost									0
Contract Fulfillment Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Capitalized contract cost	$ 5,800,000								$ 5,800,000

Summary of Significant Accounting Policies - Software Development Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Unamortized software development costs	$ 17,490	$ 11,695	$ 5,754
Software development amortization expense	8,123	3,178	3,507
Software development impairment charges	$ 500	$ 1,000	$ 11,100

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Minimum
Concentration Risk [Line Items]
Customer contracts, term of contracts	P3Y
Maximum
Concentration Risk [Line Items]
Customer contracts, term of contracts	P5Y
Top Five Customers \| Customer Concentration Risk \| Revenue
Concentration Risk [Line Items]
Concentration risk, percentage	69.00%	73.00%	74.00%

Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill [Line Items]
Goodwill impairment	$ (9,100)	$ 0	$ 0
Impairment of intangible assets	11,000	$ 1,000	$ 11,100
Zentry Joint Venture
Goodwill [Line Items]
Goodwill impairment	$ (9,100)

Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Net revenues	$ 325,839	$ 402,361
Americas
Disaggregation of Revenue [Line Items]
Net revenues	249,674	339,496
APAC
Disaggregation of Revenue [Line Items]
Net revenues	41,351	29,714
EMEA
Disaggregation of Revenue [Line Items]
Net revenues	34,814	33,151
Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	44,154	58,653
Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	18,731	30,855
Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	239,794	271,552
License
Disaggregation of Revenue [Line Items]
Net revenues	23,160	41,301
Cloud
Disaggregation of Revenue [Line Items]
Net revenues	162,570	231,341
Cloud \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	153,649	224,058
Cloud \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	0	0
Cloud \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	8,921	7,283
Cloud \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	14,232	29,211
Cloud \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	9,025	11,831
Cloud \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	139,100	180,304
Cloud \| License
Disaggregation of Revenue [Line Items]
Net revenues	213	9,995
Digital
Disaggregation of Revenue [Line Items]
Net revenues	99,394	117,127
Digital \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	86,422	106,629
Digital \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	5,954	6,506
Digital \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	7,018	3,992
Digital \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	18,383	24,150
Digital \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	9,706	19,024
Digital \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	67,623	62,621
Digital \| License
Disaggregation of Revenue [Line Items]
Net revenues	3,682	11,332
Messaging
Disaggregation of Revenue [Line Items]
Net revenues	63,875	53,893
Messaging \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	9,603	8,809
Messaging \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	35,397	23,208
Messaging \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	18,875	21,876
Messaging \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	11,539	5,292
Messaging \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	0	0
Messaging \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	33,071	28,627
Messaging \| License
Disaggregation of Revenue [Line Items]
Net revenues	$ 19,265	$ 19,974

Summary of Significant Accounting Policies - Contract Assets and Liabilities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Contract asset, balance	$ 4,100
Changes In Contract Liabilities [Roll Forward]
Contract liabilities, beginning balance	115,009
Revenue recognized in the period	(262,709)
Amounts billed but not recognized as revenue	264,642
Contract liabilities, ending balance	$ 116,942

Summary of Significant Accounting Policies - Remaining Performance Obligations (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remaining performance obligation	$ 344.7
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	96.20%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	2 years

Summary of Significant Accounting Policies - Schedule of Effect of New Accounting Pronouncement (Details) - USD ($)
$ / shares in Units, $ in Thousands

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Cash and cash equivalents

$ 103,771

$ 156,299

$ 169,801

Restricted cash

^[1]

6,089

89,826

Marketable securities, current

28,230

3,111

Accounts receivable, net

^[1]

102,798

78,186

Prepaid expenses

45,058

33,957

Other current assets

8,508

9,600

Total current assets

294,454

370,979

Marketable securities, non-current

6,658

Property and equipment, net

67,937

111,825

224,899

237,303

224,651

Intangible assets, net

98,706

132,167

Deferred tax assets

8,982

5,236

Equity method investment

1,619

33,917

Total assets

703,255

965,411

13,576

5,959

59,545

72,739

Short-term convertible debt, net of debt issuance costs

57,101

75,829

113,542

Lease financing obligation

243,764

192,486

9,494

11,183

Deferred tax liabilities

1,347

13,735

59,841

25,241

Redeemable noncontrolling interest

10,797

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 December 31, 2018

$ 176,603

$ 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, 49,836 and 52,024 shares issued; 42,674 and 46,965 outstanding at December 31, 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 (in shares)

49,836,000

52,024,000

Common stock, shares outstanding (shares)

42,674,000

46,965,000

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

$ (82,087)

$ (105,584)

Treasury stock, shares (shares)

7,162,000

5,059,000

Additional paid-in capital

$ 534,673

$ 597,553

(30,383)

(23,373)

(233,299)

(5,014)

188,909

463,587

$ 529,797

$ 505,329

Adjusted amounts under prior GAAP

703,255

965,411

Cash and cash equivalents

103,771

Restricted cash

6,089

Marketable securities, current

28,230

Accounts receivable, net

94,771

Prepaid expenses

45,058

Other current assets

9,149

Total current assets

287,068

Marketable securities, non-current

6,658

Property and equipment, net

67,937

224,899

Intangible assets, net

98,706

Deferred tax assets

8,662

Equity method investment

1,619

Total assets

695,549

13,576

59,545

Short-term convertible debt, net of debt issuance costs

69,235

113,542

Lease financing obligation

255,898

9,494

Deferred tax liabilities

1,347

57,972

Redeemable noncontrolling interest

10,797

12,500

Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 195 shares issued and outstanding at December 31, 2018

176,603

Common stock, $0.0001 par value; 100,000 shares authorized, 49,836 and 52,024 shares issued; 42,674 and 46,965 outstanding at December 31, 2018 and December 31, 2017, respectively

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

(82,087)

Additional paid-in capital

534,673

(30,418)

(251,235)

170,938

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

695,549

Accounts receivable, net

8,027

(641)

7,386

320

7,706

(12,134)

(12,134)

1,869

17,936

$ (10,100)

17,971

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

$ 7,706

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

Summary of Significant Accounting Policies - Schedule of Income Statement Effect of New Accounting Pronouncements (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

$ 82,102

$ 83,286

$ 76,742

$ 83,709

$ 106,259

$ 91,015

$ 118,990

$ 86,097

$ 325,839

$ 402,361

$ 426,294

^[1]

158,802

181,453

194,684

79,172

90,850

114,493

122,112

154,037

126,228

12,375

10,739

6,333

117,654

94,884

105,966

490,115

531,963

548,898

(42,313)

(34,629)

(43,100)

(44,234)

(33,222)

(36,139)

(8,894)

(51,347)

(164,276)

(129,602)

(122,604)

7,770

12,502

1,907

(4,911)

(55,771)

(7,414)

1,760

(29,413)

Other expense, net

(74,917)

(17,678)

1,022

(28,600)

(9,125)

(263,174)

(229,087)

(127,089)

17,894

34,863

33,220

Income from discontinued operations, net of taxes

(245,280)

(194,224)

(93,869)

^[2]

18,288

75,495

90,560

Net loss attributable to redeemable noncontrolling interests

(101,107)

(46,644)

(41,264)

(37,977)

8,604

(36,364)

(29,383)

(61,586)

(226,992)

(118,729)

(3,309)

8,837

9,291

15,203

(25,593)

$ (101,909)

$ (54,529)

$ (47,265)

$ (40,045)

$ 10,915

$ (35,088)

$ (26,568)

$ (58,697)

$ (243,748)

$ (109,438)

$ 11,894

Basic:

$ (3.01)

$ (1.38)

$ (1.20)

$ (0.95)

$ (1.75)

$ (0.98)

$ (0.44)

$ (0.96)

$ (6.51)

$ (4.14)

$ (1.81)

0.45

0.00

1.99

0.20

(0.16)

(0.37)

0.46

^[2]

1.69

^[2]

2.08

^[2]

(2.56)

(1.38)

(1.20)

(0.95)

0.24

(0.78)

(0.60)

(1.33)

(6.05)

(2.45)

0.27

Diluted:

(3.01)

(1.38)

(1.20)

(0.95)

(1.75)

(0.98)

(0.44)

(0.96)

(6.51)

(4.14)

(1.81)

0.45

0.00

1.99

0.20

(0.16)

(0.37)

0.46

^[2]

1.69

^[2]

2.08

^[2]

$ (2.56)

$ (1.38)

$ (1.20)

$ (0.95)

$ 0.24

$ (0.78)

$ (0.60)

$ (1.33)

$ (6.05)

$ (2.45)

$ 0.27

Weighted average common shares outstanding - basic (shares)

40,277

44,669

43,551

Weighted average common shares outstanding - diluted (shares)

40,277

44,669

43,551

Adjusted amounts under prior GAAP

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

$ 296,472

157,961

79,172

121,910

12,375

117,654

489,072

(192,600)

7,770

(4,773)

1,760

Other expense, net

(74,797)

(28,600)

(291,240)

17,894

Income from discontinued operations, net of taxes

(273,346)

18,288

Net loss attributable to redeemable noncontrolling interests

(255,058)

8,837

(25,593)

$ (271,814)

Basic:

$ (7.20)

0.46

(6.74)

Diluted:

(7.20)

0.46

$ (6.74)

Weighted average common shares outstanding - basic (shares)

40,277

Weighted average common shares outstanding - diluted (shares)

40,277

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

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

$ 29,367

841

202

1,043

28,324

(138)

Other expense, net

(120)

28,066

Income from discontinued operations, net of taxes

28,066

Net loss attributable to redeemable noncontrolling interests

28,066

$ 28,066

Basic:

$ 0.69

0.00

0.69

Diluted:

0.69

0.00

$ 0.69

[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.

Summary of Significant Accounting Policies - Equity Impact (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net loss from continued operations	$ (101,909)	$ (54,529)	$ (47,265)	$ (40,045)	$ 10,915	$ (35,088)	$ (26,568)	$ (58,697)	$ (243,748)	$ (109,438)	$ 11,894
Impact on Retained Earnings at December 31, 2018	(233,299)				(5,014)				(233,299)	(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									28,066
Impact on Retained Earnings at December 31, 2018	$ 17,936				$ (10,100)				$ 17,936	$ (10,100)

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

+ References + Details

Summary of Significant Accounting Policies - Foreign Currency (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss on foreign currency translations	$ (478)	$ (4,952)	$ (270)

Summary of Significant Accounting Policies - Leases (Details) - Subsequent Event $ in Millions	Jan. 01, 2019 USD ($)
Minimum
Lessee, Lease, Description [Line Items]
Lease right-of-use asset	$ 60
Lease liability	65
Maximum
Lessee, Lease, Description [Line Items]
Lease right-of-use asset	70
Lease liability	$ 75

Summary of Significant Accounting Policies - Geographical Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments \| segment									2
Number of reportable segments \| segment									1
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 82,102	$ 83,286	$ 76,742	$ 83,709	$ 106,259	$ 91,015	$ 118,990	$ 86,097	$ 325,839	$ 402,361	$ 426,294
Property and equipment, net	67,937				111,825				67,937	111,825
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									249,674	334,970	360,891
Property and equipment, net	59,054				106,727				59,054	106,727
Foreign
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues									76,165	67,391	$ 65,403
Property and equipment, net	$ 8,883				$ 5,098				$ 8,883	$ 5,098

Acquisitions and Divestitures - Acquisitions (Details) - USD ($)		1 Months Ended	12 Months Ended
	Jan. 19, 2017	May 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Honeybee Software
Business Acquisition [Line Items]
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			$ 8,100,000
Other long term debt receivables			8,700,000
Net working capital			1,600,000
Goldman Sachs Bank USA \| 2017 Term Facility
Business Acquisition [Line Items]
Borrowing capacity	$ 900,000,000.0
Proceeds from credit agreement	$ 900,000,000
Selling, general and administrative
Business Acquisition [Line Items]
Transaction costs			$ 100,000	$ 13,000,000	$ 10,900,000

Acquisitions and Divestitures - Divestitures (Details) - USD ($)						3 Months Ended	12 Months Ended
	Feb. 15, 2018	Nov. 14, 2017	Oct. 17, 2017	Feb. 01, 2017	Jan. 19, 2017	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contingent interest derivative								$ 193,000
Mandatorily redeemable financial instrument							$ 0	$ 37,959,000
Preferred stock, shares issued (shares)							195,000	0
Preferred stock, par value (in dollars per share)							$ 0.0001	$ 0.0001
Gain on divestiture							$ 0	$ 4,947,000	$ 0
SNCR, LLC
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
SpeechCycle
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Period of transition services agreement				1 year
Divestiture consideration				$ 13,500,000
Gain on divestiture				$ 4,900,000
Intralinks Holdings, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total preliminary consideration transferred					$ 859,078,000
Total preliminary cash consideration transferred					$ 854,376,000
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
Silver Private Holdings I, LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Preferred stock, shares issued (shares)	185,000
Preferred stock, par value (in dollars per share)	$ 0.0001
Preferred stock, liquidation preference (dollars per share)	$ 1,000
Consideration received on transaction	$ 97,700,000
Number of shares repurchased (shares)	5,994,667						5,994,667
Siris Put Right
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Put option, share price (dollars per share			$ 14.56
Put option, aggregate value			$ 87,300,000
Mandatorily redeemable financial instrument			$ 33,600,000
Discontinued Operations, Disposed of by Sale \| Intralinks Holdings, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Period of transition services agreement		6 months

Acquisitions and Divestitures - Consideration Transferred (Details) - Intralinks Holdings, Inc. $ in Thousands	Jan. 19, 2017 USD ($)
Business Acquisition [Line Items]
Cash consideration for outstanding Intralinks’ common shares	$ 746,071
Cash consideration for accelerated equity awards to Intralinks’ employees upon change in control	7,873
Cash consideration for vested unexercised Intralinks’ stock options	19,838
Cash consideration for existing Intralinks’ debt	77,800
Cash consideration for shareholders purchase price settlement	2,794
Total cash consideration transferred	854,376
Fair value of replacement awards	4,702
Total consideration transferred	$ 859,078

Acquisitions and Divestitures - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Jan. 19, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill		$ 224,899	$ 237,303	$ 224,651
Intralinks Holdings, Inc.
Business Acquisition [Line Items]
Cash	$ 39,370
Accounts receivable	46,182
Prepaid expenses and other assets	9,775
Property and equipment, net	14,075
Goodwill	482,822
Intangible assets	411,577
Other assets, long-term	3,865
Investment in unconsolidated affiliate	5,800
Total assets acquired	1,013,466
Accounts payable	4,853
Accrued expenses	21,421
Deferred revenues, short-term	12,449
Deferred tax liability	110,044
Deferred revenues, long-term	1,051
Other liabilities, long-term	4,570
Total liabilities	154,388
Net assets acquired	$ 859,078
Property and equipment, weighted average life	4 years
Developed technology \| Intralinks Holdings, Inc.
Business Acquisition [Line Items]
Intangible assets	$ 79,400
Intangible assets, weighted average life	6 years
Capitalized software costs \| Intralinks Holdings, Inc.
Business Acquisition [Line Items]
Intangible assets	$ 277
Intangible assets, weighted average life	1 year
Trade name \| Intralinks Holdings, Inc.
Business Acquisition [Line Items]
Intangible assets	$ 47,800
Intangible assets, weighted average life	18 years
Customer relationships \| Intralinks Holdings, Inc.
Business Acquisition [Line Items]
Intangible assets	$ 284,100
Intangible assets, weighted average life	10 years

Acquisitions and Divestitures - Divestiture Operating Results (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Gain on sale of discontinued operations

$ (18,288)

$ 122,842

$ 113,129

Discontinued operations, net of taxes

^[1]

$ 18,288

75,495

$ 90,560

Discontinued Operations, Disposed of by Sale | Intralinks Holdings, Inc.

Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]

213,178

Cost of services

35,393

19,148

114,737

Restructuring

15,995

41,780

Loss from discontinued operations

227,053

Other income, net

1,448

(12,427)

Gain on sale of discontinued operations

122,842

Income from discontinued operations before taxes

110,415

Provision for income taxes

(34,920)

Discontinued operations, net of taxes

$ 75,495

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

Fair Value Measurements - Hierarchy (Details) - USD ($)	12 Months Ended
Fair Value Measurements - Hierarchy (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash, cash equivalents and restricted cash	$ 109,860,000	$ 246,125,000
Marketable securities-short term	28,230,000	3,111,000
Marketable securities-long term	6,658,000
Total assets	144,748,000	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	109,860,000	246,125,000
Marketable securities-short term	0	0
Marketable securities-long term	0
Total assets	109,860,000	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	28,230,000	3,111,000
Marketable securities-long term	6,658,000
Total assets	34,888,000	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 - AFS Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Amortized Cost to Fair Value
Amortized Cost	$ 30,776	$ 3,117
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(49)	(6)
Fair Value	30,727	3,111
Certificates of deposit
Amortized Cost to Fair Value
Amortized Cost	3,776	250
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(16)	0
Fair Value	3,760	250
Corporate bonds
Amortized Cost to Fair Value
Amortized Cost	402
Gross Unrealized Gains	0
Gross Unrealized Losses	(1)
Fair Value	401
Municipal bonds
Amortized Cost to Fair Value
Amortized Cost	10,913	2,867
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(32)	(6)
Fair Value	10,881	$ 2,861
Treasury bonds
Amortized Cost to Fair Value
Amortized Cost	15,685
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	$ 15,685

Fair Value Measurements - AFS Securities in Unrealized Loss Position (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Aggregate fair value of investment with unrealized losses	$ 14.9	$ 2.9

Fair Value Measurements - AFS Securities Expected Maturities (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Amortized Cost
Due within one year	$ 24,093
Due after 1 year through 5 years	6,328
Due after 5 years through 10 years	355
Due after 10 years	0
Total available-for-sale debt securities	30,776
Fair Value
Due within one year	24,069
Due after 1 year through 5 years	6,304
Due after 5 years through 10 years	354
Due after 10 years	0
Total available-for-sale debt securities	$ 30,727

Fair Value Measurements - Marketable Securities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Changes In Marketable Securities [Roll Forward]
Balance at December 31, 2017	$ 0
Mutual funds purchases	4,161
Realized gains (losses)	0
Balance at December 31, 2018	$ 4,161

Fair Value Measurements - Level 3 Redeemable Noncontrolling Interests (Details) - Redeemable Noncontrolling Interests $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Changes in fair value of the Company’s Level 3 redeemable noncontrolling interests
Beginning Balance	$ 25,280
Fair value adjustment	(3,943)
Net loss attributable to redeemable noncontrolling interests	(8,837)
Ending Balance	$ 12,500

Investments in Affiliates and Related Transactions (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity method investment	$ 1,619	$ 1,619	$ 33,917
Equity method investment, ownership interest	30.00%	30.00%
Sequential Technology International, LLC
Schedule of Equity Method Investments [Line Items]
Non-cash, other-than-temporary impairment	$ 22,900
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		$ 2,100	$ 1,700
Cloud Technology and Support \| Discontinued Operations, Disposed of by Sale \| BPO Divestiture
Schedule of Equity Method Investments [Line Items]
Discontinued operation after disposal, revenue		$ 25,700	$ 26,000
Discounted Cash Flow \| Discount Rate \| Sequential Technology International, LLC
Schedule of Equity Method Investments [Line Items]
Measurement input	0.20	0.20

Investments in Affiliates and Related Transactions - Note Receivable (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jul. 31, 2018	Jun. 30, 2018
Schedule of Equity Method Investments [Line Items]
Modification to liquidation preference	$ 24,000
Movement in Financing Receivable [Roll Forward]
Impairment, activity	(18,200)	$ (84,314)	$ (14,562)	$ 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		(12,162)
Loan Accrued Interest, beginning balance		11,096
Distribution Note, beginning balance		6,187
Distribution interest, beginning balance		425
Total, beginning balance		73,984
Seller Note, activity		0
Impairment, activity		(84,314)
Unamortized Discount, activity		438
Loan Accrued Interest, activity		6,103
Distribution Note, activity		3,293
Distribution interest, activity		496
Total, activity		(73,984)
Seller Note, ending balance		83,000	83,000
Impairment, ending balance		(98,876)	(14,562)
Unamortized Discount, ending balance		(11,724)	(12,162)
Loan Accrued Interest, ending balance		17,199	11,096
Distribution Note, ending balance		9,480	6,187
Distribution interest, ending balance		921	425
Total, ending balance	$ 66,100	0	$ 73,984
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
LIBOR
Schedule of Equity Method Investments [Line Items]
PIK Note, basis spread					3.00%	11.00%

Investments in Affiliates and Related Transactions - Equity Method Investment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Balance Sheet
Restricted cash	$ 0	$ 118
Accounts receivable	27,532	18,033
Total assets	27,532	18,151
Accrued expenses	0	118
Total liabilities	0	118
STI
Balance Sheet
Restricted cash	$ 0	$ 100

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 353,372	$ 349,394
Less: Accumulated depreciation	(285,435)	(237,569)
Property and equipment, net	67,937	111,825
Depreciation	55,800	57,000	$ 51,800
Computer hardware
Property, Plant and Equipment [Line Items]
Property and equipment, gross	246,373	250,453
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	64,530	62,335
Construction in-progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	651	471
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,408	7,736
Building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,808	8,808
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 23,602	$ 19,591

Goodwill and Intangibles - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill
Beginning balance	$ 237,303	$ 224,651
Acquisitions	2,156
Impairment	(9,100)	0	$ 0
Divestitures		(1,854)
Reclassifications adjustments and other	0	181
Translation adjustments	(5,460)	14,325
Ending balance	$ 224,899	$ 237,303	$ 224,651

Goodwill and Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Intangible assets
Goodwill impairment	$ 9,100	$ 0	$ 0
Intangible assets:
Cost	264,907	275,320
Accumulated Amortization	(166,201)	(143,153)
Net	98,706	132,167
Amortization expense	41,300	36,900	43,100
Impairment of intangible assets	11,000	1,000	$ 11,100
Technology
Intangible assets:
Cost	100,896	124,799
Accumulated Amortization	(73,271)	(70,608)
Net	27,625	54,191
Customer lists and relationships
Intangible assets:
Cost	127,755	128,170
Accumulated Amortization	(75,123)	(62,905)
Net	52,632	65,265
Capitalized software and patents
Intangible assets:
Cost	33,710	19,792
Accumulated Amortization	(15,261)	(7,115)
Net	18,449	12,677
Trade name
Intangible assets:
Cost	2,546	2,559
Accumulated Amortization	(2,546)	(2,525)
Net	$ 0	$ 34

Goodwill and Intangibles - Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Estimated future amortization expense
2019	$ 31,954
2020	20,107
2021	12,902
2022	10,168
2023	5,846
Thereafter	17,729
Total	$ 98,706	$ 132,167

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 26,840	$ 22,679
Accrued professional service fees	8,177	31,535
Accrued telecommunications	1,758	3,028
Accrued income taxes payable	1,394	2,810
Accrued preferred dividend	7,075	0
Accrued other	14,301	12,687
Total	$ 59,545	$ 72,739

Commitments, Contingencies and Other (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Colocation, 2019	$ 18,868
Colocation, 2020	18,426
Colocation, 2021	43
Colocation, 2022	0
Colocation, 2023 and thereafter	0
Colocation, total	37,337
Operating Leases, 2019	10,563
Operating Leases, 2020	11,413
Operating Leases, 2021	10,533
Operating Leases, 2022	10,014
Operating Leases, 2023 and thereafter	37,954
Operating Leases, total	80,477
Capital Leases, 2019	2,627
Capital Leases, 2020	1,594
Capital Leases, 2021	1,594
Capital Leases, 2022	1,594
Capital Leases, 2023 and thereafter	7,438
Capital Leases, total	14,847
Rent expense	$ 11,700	$ 10,600	$ 8,500

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Convertible Senior Notes	$ 113,980	$ 230,000
Unamortized debt issuance cost	(438)	(2,296)
Total long-term debt, carrying value	113,542	227,704
Total short-term debt, carrying value	113,542	0
Total long-term debt, carrying value	$ 0	$ 227,704

Debt - Convertible Senior Notes (Details) - USD ($)			12 Months Ended
Debt - Convertible Senior Notes (Details) - USD ($)	Nov. 02, 2018	Aug. 12, 2014	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jun. 13, 2018	Oct. 13, 2017
Debt Instrument [Line Items]
Principal amount			$ 113,980,000	$ 230,000,000
Liability at fair value			0
2019 Notes
Debt Instrument [Line Items]
Convertible senior notes		$ 230,000,000.0	114,000,000.0
Interest rate, as a percent		0.75%
Principal amount		$ 230,000,000	$ 113,500,000
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%
Debt retired as part of settlement agreement	$ 116,000,000
Interest expense on borrowings			$ 1,578,000	$ 1,725,000	$ 1,725,000
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%

Debt - 2019 Notes (Details) - USD ($)	Nov. 02, 2018	Dec. 31, 2018	Dec. 31, 2017	Aug. 12, 2014
Debt Instrument [Line Items]
Principal amount		$ 113,980,000	$ 230,000,000
2019 Notes
Debt Instrument [Line Items]
Notice of holders of 2019 Notes threshold for acceleration of notes due (percent)		25.00%
Debt retired as part of settlement agreement	$ 116,000,000
Principal amount		$ 113,500,000		$ 230,000,000
Convertible senior notes		$ 114,000,000.0		$ 230,000,000.0
Interest rate, effective percentage		1.37%
Total debt, carrying value		$ 109,700,000

Debt - 2017 Credit Agreement (Details)				12 Months Ended
Debt - 2017 Credit Agreement (Details)	Jun. 30, 2017	Jan. 19, 2017 USD ($)	Jul. 07, 2016 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Nov. 30, 2017	Oct. 16, 2017	Jul. 19, 2017 USD ($)	Jul. 18, 2017
Line of Credit Facility [Line Items]
Repayments of lines of credit				$ 0	$ 29,000,000	$ 115,000,000
Gain (loss) on extinguishment of debt				$ 1,760,000	$ (29,413,000)	$ 0
2017 Term Facility
Line of Credit Facility [Line Items]
Interest rate, effective percentage										4.08%
Revolving Facility
Line of Credit Facility [Line Items]
Borrowing capacity		$ 200,000,000.0
First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Borrowing capacity									$ 100,000,000.0
Waiver fee								0.25%
Line of credit facility, sub-limit									$ 50,000,000.0
Interest coverage ratio					2.00
Amended Credit Facility
Line of Credit Facility [Line Items]
Borrowing capacity			$ 250,000,000.0
Increase maximum borrowing capacity amount			$ 350,000,000.0
Repayments of lines of credit		29,000,000
Goldman Sachs Bank USA \| 2017 Term Facility
Line of Credit Facility [Line Items]
Borrowing capacity		900,000,000.0
Consent fee, percent	0.15%
Credit Agreement, 2017
Line of Credit Facility [Line Items]
Fee amount					$ 16,800,000
Repayments of lines of credit					897,500,000
Gain (loss) on extinguishment of debt					$ (29,400,000)
Credit Agreement, 2017 \| Goldman Sachs Bank USA \| 2017 Term Facility
Line of Credit Facility [Line Items]
Borrowing capacity		$ 900,000,000.0
Amortization percent per year		1.00%
Mandatory prepayment, covenant one		100.00%
Mandatory prepayment, covenant two		100.00%
Credit Agreement, 2017 \| Goldman Sachs Bank USA \| Revolving Facility
Line of Credit Facility [Line Items]
Borrowing capacity		$ 200,000,000.0
Term Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Net leverage ratio					5.00
Retroactive increase, percent					0.25%
Net revenue variance, percentage					15.00%
LIBOR \| Credit Agreement, 2017 \| Goldman Sachs Bank USA \| 2017 Term Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.75%
LIBOR \| Credit Agreement, 2017 \| Goldman Sachs Bank USA \| Revolving Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.50%
LIBOR \| Term Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate					4.50%
Interest rate, as a percent					1.00%
LIBOR \| Revolving Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate					4.50%
Interest rate, as a percent					1.00%
Base Rate \| Credit Agreement, 2017 \| Goldman Sachs Bank USA \| 2017 Term Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.75%
Base Rate \| Credit Agreement, 2017 \| Goldman Sachs Bank USA \| Revolving Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.50%
Base Rate \| Term Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate					3.50%
Interest rate, as a percent					2.00%
Base Rate \| Revolving Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate					3.50%
Interest rate, as a percent					2.00%
Minimum \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Interest rate, effective percentage							5.74%
Minimum \| Amended Credit Facility
Line of Credit Facility [Line Items]
Commitment fee on unused amount			0.15%
Interest rate, effective percentage			1.94%
Minimum \| Credit Agreement, 2017 \| Goldman Sachs Bank USA \| Revolving Facility
Line of Credit Facility [Line Items]
Commitment fee percentage		0.25%
Maximum \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Interest rate, effective percentage							5.76%
Maximum \| Amended Credit Facility
Line of Credit Facility [Line Items]
Commitment fee on unused amount			0.30%
Interest rate, effective percentage			2.03%
Maximum \| Credit Agreement, 2017 \| Goldman Sachs Bank USA \| Revolving Facility
Line of Credit Facility [Line Items]
Commitment fee percentage		0.375%
Leverage Tranche One \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Net leverage ratio					5.50
Leverage Tranche Two \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Net leverage ratio					5.00
Leverage Tranche Three \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Net leverage ratio					4.25
Less Than or Equal To 5.00 \| LIBOR \| Term Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate					5.75%
Less Than or Equal To 5.00 \| Base Rate \| Term Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate					4.75%
Greater Than 5.00 \| LIBOR \| Term Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate					6.75%
Greater Than 5.00 \| Base Rate \| Term Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Basis spread on variable rate					5.75%
Prepaid with Proceeds of Repricing Transaction \| Term Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Prepayment fee percentage					1.00%
Voluntary Prepayments Through One-Year Anniversary of Initial Period End Date \| Term Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Prepayment fee percentage					2.00%
Voluntary Prepayments After One-Year Anniversary of Initial Period End Date \| Term Loans \| First Amendment to 2017 Credit Agreement
Line of Credit Facility [Line Items]
Prepayment fee percentage					1.00%

Debt - Interest Expense (Details) - USD ($) $ in Thousands	12 Months Ended
Debt - Interest Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 1,294	$ 12,771	$ 1,607
Non-cash interest on leased facility	964	971	0
Other	884	1,423	2,751
Interest Expense	4,911	55,771	7,414
2019 Notes
Debt Instrument [Line Items]
Amortization of debt issuance costs	1,294	1,413	1,413
Interest expense on borrowings	1,578	1,725	1,725
Additional interest on default	191	193	0
2017 Term Facility \| Goldman Sachs Bank USA
Debt Instrument [Line Items]
Amortization of debt issuance costs	0	2,915
Interest expense on borrowings	0	35,327
Contingent Interest Derivative	0	2,489
Amendment fees paid to third parties	0	5,716
Revolving Facility \| Goldman Sachs Bank USA
Debt Instrument [Line Items]
Amortization of debt issuance costs	0	646
Commitment fees	0	494
Amendment fees paid to third parties	0	1,662
Amended Credit Facility \| Credit Facility
Debt Instrument [Line Items]
Amortization of debt issuance costs	0	748	233
Commitment fees	0	25	415
Interest expense on borrowings	$ 0	$ 24	$ 877

Accumulated Other Comprehensive (Loss) / Income - Changes in AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Changes in accumulated other comprehensive income (loss)
Beginning balance	$ 463,587	$ 529,797	$ 505,329
Total comprehensive income	(7,059)	18,977	(4,836)
Ending balance	188,909	463,587	529,797
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss)
Beginning balance	(23,373)	(42,350)	(37,514)
Other comprehensive income	(7,452)	20,377	(4,898)
Tax effect	442	(1,400)	62
Ending balance	(30,383)	(23,373)	(42,350)
Foreign currency
Changes in accumulated other comprehensive income (loss)
Beginning balance	(20,284)	(37,311)	(33,197)
Other comprehensive income	(6,152)	17,027	(4,114)
Tax effect	0	0	0
Ending balance	(26,436)	(20,284)	(37,311)
Unrealized income (loss) on intra-entity foreign currency transactions
Changes in accumulated other comprehensive income (loss)
Beginning balance	(3,085)	(5,017)	(4,292)
Other comprehensive income	(1,263)	3,322	(789)
Tax effect	442	(1,390)	64
Ending balance	(3,906)	(3,085)	(5,017)
Unrealized holding gains (losses) on marketable debt securities
Changes in accumulated other comprehensive income (loss)
Beginning balance	(4)	(22)	(25)
Other comprehensive income	(37)	28	5
Tax effect	0	(10)	(2)
Ending balance	$ (41)	$ (4)	$ (22)

Capital Structure - Capitalization Information (Details)				12 Months Ended
	Feb. 15, 2018 USD ($) director registration member vote $ / shares shares	Nov. 14, 2017 USD ($)	Feb. 04, 2016 USD ($)	Dec. 31, 2018 USD ($) vote $ / shares shares	Dec. 31, 2017 $ / shares shares	Dec. 31, 2016 USD ($) shares
Class of Stock [Line Items]
Capital stock authorized (shares)				110,000,000
Capital stock, par value (dollars per share) \| $ / shares				$ 0.0001
Common stock, shares authorized (shares)				100,000,000	100,000,000
Preferred stock, shares authorized (shares)				10,000,000	10,000,000
Dividends \| $				$ 0
Value of shares repurchased under program \| $				$ 44,830,000
Shares retired (shares)				3,900,000
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, shares to be issued upon conversion (shares)	55.5556
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 \| $				$ 251,900,000
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]
Number of shares repurchased under program (shares)	5,994,667			5,994,667
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
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
2015 Plan
Class of Stock [Line Items]
Number of shares available for grant (in shares)				0
Liability, accrued expenses, non-vested \| $				$ 400,000
2017 New Hire Plan
Class of Stock [Line Items]
Number of shares available for grant (in shares)				400,000
Restricted stock awards
Class of Stock [Line Items]
Granted (in shares)				2,015,000
Vested (in shares)				(955,000)
2016 Share Repurchase Program
Class of Stock [Line Items]
Amount authorized to be purchased under stock repurchase program \| $			$ 100,000,000
Number of shares repurchased under program (shares)					0	1,300,000
Value of shares repurchased under program \| $						$ 40,000,000
2016 Share Repurchase Program \| Minimum
Class of Stock [Line Items]
Stock repurchase program, period			12 months
2016 Share Repurchase Program \| Maximum
Class of Stock [Line Items]
Stock repurchase program, period			18 months

Capital Structure - Preferred Stock (Details) - Preferred Stock shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) shares
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning balance	$ 0
Beginning balance (shares) \| shares	0
Issuance of preferred stock	$ 185,000
Issuance of preferred stock (shares) \| shares	185
Initial discount and issuance costs related to preferred stock	$ (19,840)
Amortization of preferred stock issuance costs	1,262
Issuance of preferred PIK dividend	$ 10,181
Issuance of preferred PIK dividend (shares) \| shares	10
Ending balance	$ 176,603
Ending balance (shares) \| shares	195

Stock Plans - Plan Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 15, 2017
Stockholder's Equity
Threshold consecutive trading days	20 days
2015 Plan
Stockholder's Equity
Number of shares available for grant (in shares)		0
Total number of shares available for purchase (in shares)		100,000
Liability, accrued expenses, non-vested		$ 0.4
2017 New Hire Plan
Stockholder's Equity
Number of shares available for grant (in shares)		400,000
Maximum shares authorized			1,500,000.0

Stock Plans - Stock-based Compensation (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based compensation expense
Total stock-based compensation expense	$ 2,000	$ 27,604	$ 22,495	$ 34,178
Tax benefit		5,387	3,921	11,108
Stock-based compensation cost related to non-vested equity awards not yet recognized as an expense		$ 38,700
Weighted-average period over which stock-based compensation cost related to non-vested equity awards is expected to be recognized		2 years 4 months 10 days
Severance costs			1,100
Employee Stock Purchase Plan
Share-based compensation expense
Total stock-based compensation expense		$ 0	382	817
Stock options
Share-based compensation expense
Total stock-based compensation expense		7,368	6,311	7,778
Restricted stock awards
Share-based compensation expense
Total stock-based compensation expense		20,236	15,802	25,583
Cost of revenues
Share-based compensation expense
Total stock-based compensation expense		4,370	4,602	7,310
Research and development
Share-based compensation expense
Total stock-based compensation expense		6,055	6,030	8,891
Selling, general and administrative
Share-based compensation expense
Total stock-based compensation expense		$ 17,179	$ 11,863	$ 17,977

Stock Plans - Option Vesting (Details)	12 Months Ended
Stock Plans - Option Vesting (Details)	Dec. 31, 2018
Monthly Percentage
Stockholder's Equity
Percentage of awards vesting	2.08%
Quarterly percentage after first anniversary
Stockholder's Equity
Percentage of awards vesting	6.25%
Upon achievement of performance objectives
Stockholder's Equity
Percentage of awards vesting	33.33%
Annual percentage after achievement of performance objectives
Stockholder's Equity
Percentage of awards vesting	33.33%
2015 Plan \| Stock options \| First Anniversary
Stockholder's Equity
Percentage of awards vesting	25.00%
2010 Plan \| Stock options \| Second Anniversary
Stockholder's Equity
Percentage of awards vesting	50.00%
2000 and 2006 Stock incentive plans \| Stock options \| First Anniversary
Stockholder's Equity
Percentage of awards vesting	25.00%

Stock Plans - Black-Scholes Assumptions (Details) - Stock options - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Weighted-average assumptions
Expected stock price volatility	65.50%	57.00%	45.00%
Risk-free interest rate	2.60%	1.80%	1.20%
Expected life of options (in years)	4 years 1 month 17 days	4 years 29 days	4 years
Expected dividend yield	0.00%	0.00%	0.00%
Weighted-average fair value (grant date) of the options (in dollars per share)	$ 4.91	$ 6.30	$ 11.13

Stock Plans - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of Options
Options outstanding at the beginning of the period (in shares)	3,950
Options Granted (in shares)	1,160
Options Exercised (in shares)	0
Options Cancelled (in shares)	(856)
Options outstanding at the end of the period (in shares)	4,254	3,950
Vested (in shares)	1,816
Exercisable (in shares)	1,816
Weighted-Average Exercise Price
Balance at the beginning of the period (in dollars per share)	$ 21.54
Options Granted (in dollars per share)	9.45
Options Exercised (in dollars per share)	0.00
Options Cancelled (in dollars per share)	23.10
Balance at the end of the period (in dollars per share)	17.93	$ 21.54
Vested (in dollars per share)	25.51
Exercisable (in dollars per share)	$ 25.51
Weighted-Average Remaining Contractual Term (Years)
Outstanding	4 years 10 months 17 days
Vested	3 years 7 months 2 days
Exercisable	3 years 7 months 2 days
Aggregate Intrinsic Value
Outstanding	$ 17
Vested	0
Exercisable	0	$ 0
Additional disclosures related to stock options
Total intrinsic value for stock options exercisable	0	0
Total intrinsic value for stock options exercised	$ 0	$ 0

Stock Plans - Restricted Stock (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Restricted stock awards
Number of Awards
Non-vested at the beginning of the period (in shares)	2,064
Granted (in shares)	2,015
Vested (in shares)	(955)
Forfeited (in shares)	(424)
Non-vested at the end of the period (in shares)	2,700	2,064
Weighted-Average Grant Date Fair Value
Non-vested at the beginning of the period (in dollars per share)	$ 22.75
Granted (in dollars per share)	8.91
Vested (in dollars per share)	24.68
Forfeited (in dollars per share)	16.35
Non-vested at the end of the period (in dollars per share)	$ 12.71	$ 22.75
2015 Plan \| Performance Stock Awards
Stockholder's Equity
Vesting period		3 years
First Anniversary \| Restricted stock awards
Stockholder's Equity
Percentage of awards vesting		25.00%

Stock Plans - ESPP and Treasury Stock (Details) - Employee Stock Purchase Plan $ in Thousands, shares in Millions	Feb. 01, 2012 USD ($) shares
Employee Stock Purchase Plan
Term of ESPP	10 years
Total number of shares available for purchase (in shares) \| shares	0.5
Percentage of fair market value of common stock	85.00%
Maximum percentage of total combined voting power a participant is allowed to be granted a right to purchase common stock	5.00%
Maximum value of shares authorized for purchase within any purchase period \| $	$ 25

401(k) Plan (Details) - USD ($) $ in Millions	12 Months Ended
401(k) Plan (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Employer contribution incurred and expensed under 401(k) Plan	$ 2.2	$ 2.9	$ 2.7

Restructuring (Details) - USD ($) $ in Thousands	12 Months Ended
Restructuring (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Restructuring accrual and changes
Charges	$ 12,375	$ 10,739	$ 6,333
Accrued expenses
Restructuring accrual and changes
Balance at December 31, 2017	498
Charges	12,375
Payments	(10,683)
Other adjustments	1,932
Balance at December 31, 2018	4,122	498
Employment termination costs \| Accrued expenses
Restructuring accrual and changes
Balance at December 31, 2017	474
Charges	10,947
Payments	(10,129)
Other adjustments	(16)
Balance at December 31, 2018	1,276	474
Facilities consolidation \| Accrued expenses
Restructuring accrual and changes
Balance at December 31, 2017	24
Charges	1,428
Payments	(554)
Other adjustments	1,948
Balance at December 31, 2018	$ 2,846	$ 24

Income Taxes - Components of Income before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Domestic	$ (216,589)	$ (210,214)	$ (116,730)
Foreign	(46,585)	(18,873)	(10,359)
Loss from continuing operations, before taxes	$ (263,174)	$ (229,087)	$ (127,089)

Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current:
Federal	$ 3,163	$ 600	$ 4,695
State	116	0	2,098
Foreign	(2,612)	(4,817)	(2,743)
Deferred:
Federal	6,729	40,634	26,074
State	2,214	1,340	1,301
Foreign	8,284	(2,894)	1,795
Income tax benefit	$ 17,894	$ 34,863	$ 33,220

Income Taxes - Reconciliation of Statutory Rate (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Statutory rate	21.00%	35.00%	35.00%
State taxes, net of federal benefit	3.00%	1.00%	3.00%
Effect of rates different than statutory	(2.00%)	(2.00%)	(2.00%)
Minority interest	(1.00%)	(1.00%)	(4.00%)
Non-deductible stock based compensation	(2.00%)	(2.00%)	0.00%
Other permanent adjustments	0.00%	(2.00%)	(1.00%)
Research and development credit	(0.00%)	(0.00%)	2.00%
Change in valuation allowance	(17.00%)	(7.00%)	(3.00%)
Statute release of uncertain tax position	1.00%	0.00%	0.00%
Other	1.00%	(2.00%)	(1.00%)
Tax Reform Rate Reduction	0.00%	(3.00%)	0.00%
Acquisitions and foreign tax residency changes	3.00%	(2.00%)	(3.00%)
Net	7.00%	15.00%	26.00%

Income Taxes - Deferred Tax Assets (Liabilities) Components (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Accrued liabilities	$ 88	$ 259
Deferred revenue	13,120	18,721
Bad debts reserve	1,108	1,103
Deferred compensation	4,680	5,635
Federal net operating loss carry forwards	28,193	15,324
State net operating loss carry forwards	7,085	4,940
Foreign net operating loss carry forwards	10,880	10,212
Deferred rent	776	474
Capital loss carry forward	1,689	1,541
Intangible assets	1,318	0
Basis difference	7,632	0
Installment sale	8,819	0
Other	3,508	2,947
Total deferred tax assets	88,896	61,156
Deferred tax liabilities:
Intangible assets	0	(12,491)
Basis difference	0	(6,612)
Installment sale	0	(8,909)
Depreciation and amortization	(9,179)	(14,356)
Total deferred tax liabilities	(9,179)	(42,368)
Less: valuation allowance	(81,064)	(32,523)
Net deferred income tax (liabilities) assets	$ (1,347)	$ (13,735)

Income Taxes - Carryforwards (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Details of net operating loss carryforwards [Line Items]
Net operating loss	$ 341,177
2019 - 2023
Details of net operating loss carryforwards [Line Items]
Net operating loss	9,975
2024 - 2028
Details of net operating loss carryforwards [Line Items]
Net operating loss	14,604
2029 - 2038
Details of net operating loss carryforwards [Line Items]
Net operating loss	187,820
Indefinite
Details of net operating loss carryforwards [Line Items]
Net operating loss	128,778
Federal
Details of net operating loss carryforwards [Line Items]
Net operating loss	134,300
State
Details of net operating loss carryforwards [Line Items]
Net operating loss	112,000
Foreign \| Indefinite
Details of net operating loss carryforwards [Line Items]
Net operating loss	$ 84,200

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefit, beginning of period	$ 6,475	$ 4,585	$ 4,278
Decreases for tax positions taken during prior year	(567)		(35)
Reduction due to lapse of applicable statute of limitations	(2,657)	(1,512)	(57)
Increases for tax positions of current period	721	1,946	399
Increase for tax positions taken during prior year		1,823
Increases related to acquired entities		13,278
Decreases related to divested entities		(13,645)
Unrecognized tax benefit, end of period	3,972	6,475	4,585
Unrecognized tax benefits that would impact effective tax rate	3,500	6,000
Accrued interest	400	$ 600	$ 200
Portion of current unrecognized tax benefit expected to be recognized	$ 700

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

3 Months Ended

12 Months Ended

Aug. 12, 2014

Dec. 31, 2018

USD ($)

$ / shares

Sep. 30, 2018

USD ($)

$ / shares

Jun. 30, 2018

USD ($)

$ / shares

Mar. 31, 2018

USD ($)

$ / shares

Dec. 31, 2017

USD ($)

$ / shares

Sep. 30, 2017

USD ($)

$ / shares

Jun. 30, 2017

USD ($)

$ / shares

Mar. 31, 2017

USD ($)

$ / shares

Dec. 31, 2018

USD ($)

$ / shares

Dec. 31, 2017

USD ($)

$ / shares

Dec. 31, 2016

USD ($)

$ / shares

Feb. 15, 2018

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

Net loss from continuing operations | $

$ (245,280)

$ (194,224)

$ (93,869)

Net loss attributable to redeemable noncontrolling interests | $

8,837

9,291

15,203

Preferred stock dividend | $

(25,593)

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

(262,036)

(184,933)

(78,666)

Income from discontinued operations, net of taxes | $

^[1]

18,288

75,495

90,560

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

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

(262,036)

(184,933)

(78,666)

Net loss attributable to Synchronoss | $

$ (101,909)

$ (54,529)

$ (47,265)

$ (40,045)

$ 10,915

$ (35,088)

$ (26,568)

$ (58,697)

$ (243,748)

$ (109,438)

$ 11,894

Weighted average common shares outstanding - basic (shares)

40,277,000

44,669,000

43,551,000

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)

40,277,000

44,669,000

43,551,000

Basic:

Continuing operations (usd per share) | $ / shares

$ (3.01)

$ (1.38)

$ (1.20)

$ (0.95)

$ (1.75)

$ (0.98)

$ (0.44)

$ (0.96)

$ (6.51)

$ (4.14)

$ (1.81)

Discontinued operations (usd per share) | $ / shares

0.45

0.00

1.99

0.20

(0.16)

(0.37)

0.46

^[1]

1.69

^[1]

2.08

^[1]

Basic (usd per share) | $ / shares

(2.56)

(1.38)

(1.20)

(0.95)

0.24

(0.78)

(0.60)

(1.33)

(6.05)

(2.45)

0.27

Diluted:

Continuing operations (usd per share) | $ / shares

(3.01)

(1.38)

(1.20)

(0.95)

(1.75)

(0.98)

(0.44)

(0.96)

(6.51)

(4.14)

(1.81)

Discontinued operations (usd per share) | $ / shares

0.45

0.00

1.99

0.20

(0.16)

(0.37)

0.46

^[1]

1.69

^[1]

2.08

^[1]

Diluted (usd per share) | $ / shares

$ (2.56)

$ (1.38)

$ (1.20)

$ (0.95)

$ 0.24

$ (0.78)

$ (0.60)

$ (1.33)

$ (6.05)

$ (2.45)

$ 0.27

Convertible preferred stock, shares to be issued upon conversion (shares)

55.5556

2019 Notes

Diluted:

Conversion ratio

0.0188072

Restricted stock awards

Diluted:

Convertible Debt Securities

2,700,000

2,648,000

1,310,000

Diluted:

3,972,939

4,325,646

Employee Stock Option

Diluted:

Series A Preferred Stock

Diluted:

Quarterly Financial Information Disclosure [Abstract]

9,312,528

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

Legal Matters (Details) $ in Millions		1 Months Ended
Legal Matters (Details) $ in Millions	Nov. 02, 2018 USD ($)	Jun. 14, 2017 claim	Jun. 13, 2018	Oct. 13, 2017
Pending Litigation \| The Securities Law Actions
Legal Matters
Number of complaints filed \| claim		4
2019 Notes
Legal Matters
Debt default, percent of holders			25.00%	25.00%
Debt retired as part of settlement agreement \| $	$ 116.0

Subsequent Events (Details) - 2019 Notes - Subsequent Event $ in Millions	Jan. 10, 2019 USD ($)
Subsequent Event [Line Items]
Debt repurchased	$ 11.5
Debt repurchased, at discount	$ 11.2
Debt repurchased, discount	3.25%

Additional Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
FX gains		$ (478)	$ (4,952)	$ (270)
Impairment, activity	$ (18,200)	(84,314)	(14,562)	0
Litigation settlement		4,495	0	0
Remeasurement gain on financial instrument		3,849	(4,367)	0
Divestiture: SpeechCycle		0	4,947	0
Income from Investment		519	0	0
Others		1,012	1,256	1,292
Total		(74,917)	$ (17,678)	$ 1,022
Open Exchange
Litigation settlement		4,200
F-Secure Settlement
Litigation settlement		$ 300

Summary of Quarterly Results of Operations (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

$ 82,102

$ 83,286

$ 76,742

$ 83,709

$ 106,259

$ 91,015

$ 118,990

$ 86,097

$ 325,839

$ 402,361

$ 426,294

(42,313)

(34,629)

(43,100)

(44,234)

(33,222)

(36,139)

(8,894)

(51,347)

(164,276)

(129,602)

(122,604)

Net (loss) income attributable to Synchronoss

(101,107)

(46,644)

(41,264)

(37,977)

8,604

(36,364)

(29,383)

(61,586)

(226,992)

(118,729)

(3,309)

$ (101,909)

$ (54,529)

$ (47,265)

$ (40,045)

$ 10,915

$ (35,088)

$ (26,568)

$ (58,697)

$ (243,748)

$ (109,438)

$ 11,894

Basic, Continuing operations (usd per share)

$ (3.01)

$ (1.38)

$ (1.20)

$ (0.95)

$ (1.75)

$ (0.98)

$ (0.44)

$ (0.96)

$ (6.51)

$ (4.14)

$ (1.81)

Basic, Discontinued operations (usd per share)

0.45

0.00

1.99

0.20

(0.16)

(0.37)

0.46

^[1]

1.69

^[1]

2.08

^[1]

Diluted, Continuing operations (usd per share)

(2.56)

(1.38)

(1.20)

(0.95)

0.24

(0.78)

(0.60)

(1.33)

(6.05)

(2.45)

0.27

(3.01)

(1.38)

(1.20)

(0.95)

(1.75)

(0.98)

(0.44)

(0.96)

(6.51)

(4.14)

(1.81)

Diluted, Discontinued operations (usd per share)

0.45

0.00

1.99

0.20

(0.16)

(0.37)

0.46

^[1]

1.69

^[1]

2.08

^[1]