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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	May 06, 2019
Document and Entity Information
Entity Registrant Name	SYNCHRONOSS TECHNOLOGIES INC
Entity Central Index Key	0001131554
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding (in shares)		42,790,173
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Current assets:

Cash and cash equivalents

$ 88,768

$ 103,771

Restricted cash

1,526

^[1]

6,089

^[2]

Marketable securities, current

19,674

28,230

Accounts receivable, net of allowances of $5,139 and $4,599 at March 31, 2019 and December 31, 2018, respectively

^[2]

108,939

102,798

Prepaid expenses

41,932

45,058

Other current assets

10,045

8,508

Total current assets

270,884

294,454

Marketable securities, non-current

369

6,658

Property and equipment, net

52,128

67,937

Operating lease right-of-use assets

64,747

Goodwill

223,359

224,899

Intangible assets, net

92,759

98,706

Other assets

10,013

8,982

Equity method investment

376

1,619

Total assets

714,635

703,255

Current liabilities:

Accounts payable

18,948

13,576

Accrued expenses

52,875

59,545

Deferred revenues, current

65,083

57,101

Short-term convertible debt, net of debt issuance costs

97,205

113,542

Total current liabilities

234,111

243,764

Lease financing obligation

9,494

Operating lease liabilities, non-current

66,559

Deferred tax liabilities

796

1,347

Deferred revenues, non-current

46,700

59,841

Other non-current liabilities

7,504

10,797

Redeemable noncontrolling interest

12,500

Commitments and contingencies

Series A Convertible Participating Perpetual Preferred Stock, $0.0001 par value; 10,000 shares authorized; 195 shares issued and outstanding at March 31, 2019

177,065

176,603

Stockholders’ equity:

Common stock, $0.0001 par value; 100,000 shares authorized, 49,908 and 49,836 shares issued; 42,746 and 42,674 outstanding at March 31, 2019 and December 31, 2018, respectively

Treasury stock, at cost (7,162 and 7,162 shares at March 31, 2019 and December 31, 2018, respectively)

(82,087)

Additional paid-in capital

533,224

534,673

Accumulated other comprehensive loss

(31,966)

(30,383)

Accumulated deficit

(249,776)

(233,299)

Total stockholders’ equity

169,400

188,909

Total liabilities and stockholders’ equity

$ 714,635

$ 703,255

[1]	See Note 2. Basis of Presentation and Consolidation for restricted cash details.
[2]	See Note 6. Investments in Affiliates and Related Transactions for related party transactions reflected in this account.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 5,139	$ 4,599
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 (in shares)	195,000	0
Preferred stock, shares outstanding (in 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)	49,908,000	49,836,000
Common stock, shares outstanding (shares)	42,746,000	42,674,000
Treasury stock, shares (shares)	7,162,000	7,162,000

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

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Income Statement [Abstract]

Net revenues

$ 88,105

$ 83,709

Costs and expenses:

Cost of revenues

^[1]

38,953

44,549

Research and development

19,681

20,905

Selling, general and administrative

29,246

38,110

Restructuring charges

421

1,108

Depreciation and amortization

20,143

23,271

Total costs and expenses

108,444

127,943

Loss from operations

(20,339)

(44,234)

Interest income

189

3,552

Interest expense

(585)

(1,247)

Gain on extinguishment of debt

387

Other Income

463

4,282

Equity method investment loss, net

(1,243)

(205)

Loss from operations, before taxes

(21,128)

(37,852)

Benefit (provision) for income taxes

1,391

(125)

Net loss

(19,737)

(37,977)

Net (income) loss attributable to redeemable noncontrolling interests

(313)

1,285

Preferred stock dividend

(7,537)

(3,353)

Net loss attributable to Synchronoss

$ (27,587)

$ (40,045)

Earnings per share:

Basic (in dollar per share)

$ (0.68)

$ (0.95)

Diluted (in dollar per share)

$ (0.68)

$ (0.95)

Weighted-average common shares outstanding:

Basic (in shares)

40,320

42,181

Diluted (in shares)

40,320

42,181

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (19,737)	$ (37,977)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(295)	2,872
Unrealized loss on available for sale securities	(905)	(21)
Net (loss) income on intra-entity foreign currency transactions	(383)	829
Total other comprehensive (loss) income	(1,583)	3,680
Comprehensive loss	(21,320)	(34,297)
Comprehensive (income) loss attributable to redeemable noncontrolling interests	(313)	1,285
Comprehensive loss attributable to Synchronoss	$ (21,633)	$ (33,012)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2017		52,028	5,060
Beginning balance at Dec. 31, 2017	$ 463,587	$ 5	$ (105,584)	$ 597,553	$ (23,373)	$ (5,014)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	7,186			7,186
Issuance of restricted stock (in shares)		246
Preferred stock dividends declared	(3,353)			(3,353)
Amortization of preferred stock issuance costs	(86)			(86)
Treasury shares received in connection with PIPE Purchase Agreement (in shares)			(5,995)
Treasury shares received in connection with PIPE Purchase Agreement	(44,830)		$ (44,830)
Net loss attributable to Synchronoss	(36,692)					(36,692)
Adjustments to redemption value of noncontrolling interest	11,496			11,496
Total other comprehensive income (loss)	3,647				3,647
Other	(39)			(38)		(1)
Ending balance (in shares) at Mar. 31, 2018		52,274	11,055
Ending balance at Mar. 31, 2018	390,819	$ 5	$ (150,414)	612,758	(19,693)	(51,837)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of new accounting principle \| ASU 2014-09	(10,097)				33	(10,130)
Accumulated deficit	$ (233,299)
Beginning balance (in shares) at Dec. 31, 2018	49,836	49,836	7,162
Beginning balance at Dec. 31, 2018	$ 188,909	$ 5	$ (82,087)	534,673	(30,383)	(233,299)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	5,779			5,779
Issuance of restricted stock (in shares)		73
Preferred stock dividends declared	(7,075)			(7,075)
Amortization of preferred stock issuance costs	(462)			(462)
Shares withheld for taxes in connection with issuance of restricted stock (in shares)		(1)
Shares withheld for taxes in connection with issuance of restricted stock	(4)			(4)
Net loss attributable to Synchronoss	(20,050)					(20,050)
Adjustments to redemption value of noncontrolling interest	313			313
Total other comprehensive income (loss)	$ (1,583)				(1,583)
Ending balance (in shares) at Mar. 31, 2019	49,908	49,908	7,162
Ending balance at Mar. 31, 2019	$ 169,400	$ 5	$ (82,087)	$ 533,224	$ (31,966)	$ (249,776)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accumulated deficit	$ (249,776)

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

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Operating activities:

Net loss from operations

$ (19,737)

$ (37,977)

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

Depreciation and amortization

20,143

23,272

Change in fair value of financial instruments

(3,849)

Amortization of debt issuance costs

155

353

(Gain) loss on extinguishment of debt

(387)

Accrued PIK interest

^[1]

(3,447)

(Earnings) loss from equity method investments

^[1]

1,243

205

Amortization of bond premium

(36)

Deferred income taxes

(525)

191

Non-cash interest on leased facility

275

Stock-based compensation

5,555

7,184

Changes in operating assets and liabilities:

Accounts receivable, net of allowance for doubtful accounts

(6,141)

36,153

Prepaid expenses and other current assets

4,272

9,402

Other assets

(242)

710

Accounts payable

6,084

8,646

Accrued expenses

(10,780)

(10,873)

Other liabilities

(370)

(137)

Deferred revenues

(4,918)

(39,514)

Net cash used for operating activities

(5,684)

(9,389)

Investing activities:

Purchases of property and equipment

(2,627)

(1,093)

Purchases of capitalized software

(2,704)

(7,047)

Purchases of marketable securities available for sale

(11,278)

(6,676)

Maturity of marketable securities available for sale

26,207

1,450

Net cash provided by (used for) investing activities

9,598

(13,366)

Financing activities:

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

263

Extinguishment of outstanding Convertible Senior Notes

(16,106)

Proceeds from issuance of preferred stock

86,220

Preferred dividend payment

(7,075)

Payments on capital obligations

(280)

(369)

Net cash (used for) provided by financing activities

(23,461)

86,114

Effect of exchange rate changes on cash

(19)

2,253

Net decrease in cash, restricted cash and cash equivalents

(19,566)

65,612

Cash, restricted cash and cash equivalents, beginning of period

109,860

246,126

Total cash, cash equivalents and restricted cash

90,294

311,738

Supplemental disclosures of non-cash investing and financing activities:

Accrued dividends on Series A Convertible Participating Perpetual Preferred Stock

7,075

3,353

Total cash, cash equivalents and restricted cash

Cash and cash equivalents per the Condensed Consolidated Balance Sheets

88,768

310,426

Restricted cash per the Condensed Consolidated Balance Sheets

1,526

1,312

Total cash, cash equivalents and restricted cash

$ 90,294

$ 311,738

[1]	See Note 6. Investments in Affiliates and Related Transactions for related party transactions reflected in this account.

Description of Business

3 Months Ended

Mar. 31, 2019

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”), and Media and Technology providers to 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 access to new, beneficial services. Additionally, the Company’s Personal Cloud Platform performs an 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.

Basis of Presentation and Consolidation

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Consolidation

2. Basis of Presentation and Consolidation

Basis of Presentation and Consolidation

The accompanying interim unaudited condensed consolidated financial statements have been prepared by Synchronoss and in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019.

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

For further information about the Company’s basis of presentation and consolidation or its significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Restricted Cash

Restricted cash includes amounts related to various deposits, escrows and other cash collateral that are restricted by contractual obligation. As of March 31, 2019, the restricted cash 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.

Recently Issued Accounting Standards

Recent accounting pronouncements adopted



Standard	Description	Effect on the financial statements
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 adoption of this standard does not have a material effect on the Company’s condensed consolidated financial statements.
Date of adoption: January 1, 2019.
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 adoption of this standard does not have a material effect on the Company’s condensed consolidated financial statements.
Date of adoption: January 1, 2020.

Leases

The Company adopted Accounting Standards Codification Topic 842, Leases (ASC 842) on January 1, 2019. For further discussion of the adoption, refer to the “Recent Accounting Pronouncements Adopted or Otherwise Effective as of March 31, 2019” section below. ASC 842 applies to a number of arrangements to which the Company is party whereby the Company acts as a lessee.

Whenever the Company enters into a new arrangement, it must determine, at the inception date, whether the arrangement contains a lease. This determination generally depends on whether the arrangement conveys to the Company the right to control the use of an explicitly or implicitly identified fixed asset for a period of time in exchange for consideration. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset.

If a lease exists, the Company must then determine the separate lease and non-lease components of the arrangement. Each right to use an underlying asset conveyed by a lease arrangement should generally be considered a separate lease component if it both: (i) can benefit the Company without depending on other resources not readily available to the Company and (ii) does not significantly affect and is not significantly affected by other rights of use conveyed by the lease. Aspects of a lease arrangement that transfer other goods or services to the Company but do not meet the definition of lease components are considered non-lease components. The consideration owed by the Company pursuant to a lease arrangement is generally allocated to each lease and non-lease component for accounting purposes. However, the Company has elected to not separate lease and non-lease components. Each lease component is accounted for separately from other lease components, but together with the associated non-lease components.

For each lease, the Company must then determine:

•The lease term - The lease term is the period of the lease not cancellable by the Company, together with periods covered by: (i) renewal options the Company is reasonably certain to exercise or that are controlled by the lessor and (ii) termination options the Company is reasonably certain not to exercise.

•The present value of lease payments is calculated based on:

–Lease payments - Lease payments include certain fixed and variable payments, less lease incentives, together with amounts probable of being owed by the Company under residual value guarantees and, if reasonably certain of being paid, the cost of certain renewal options and early termination penalties set forth in the lease arrangement. Lease payments exclude consideration that is: (i) not related to the transfer of goods and services to the Company and (ii) allocated to the non-lease components in a lease arrangement, except for the classes of assets where the Company has elected to not separate lease and non-lease components.

–Discount rate - The discount rate must be determined based on information available to the Company upon the commencement of a lease. Lessees are required to use the rate implicit in the lease whenever such rate is readily available; however, as the implicit rate in the Company's leases is generally not readily determinable, the Company generally uses the hypothetical incremental borrowing rate it would have to pay to borrow an amount equal to the lease payments, on a collateralized basis, over a timeframe similar to the lease term.

•Lease classification - In making the determination of whether a lease is an operating lease or a finance lease, the Company considers the lease term in relation to the economic life of the leased asset, the present value of lease payments in relation to the fair value of the leased asset and certain other factors, including the lessee's and lessor's rights, obligations and economic incentives over the term of the lease.

Generally, upon the commencement of a lease, the Company will record a lease liability and a right-of-use (ROU) asset. However, the Company has elected, for certain classes of underlying assets with initial lease terms of twelve months or less (known as short-term leases), to not recognize a lease liability or ROU asset. Lease liabilities are initially recorded at lease commencement as the present value of future lease payments. ROU assets are initially recorded at lease commencement as the initial amount of the lease liability, together with the following, if applicable: (i) initial direct costs and (ii) lease payments made, net of lease incentives received, prior to lease commencement.

Over the lease term, the Company generally increases it lease liabilities using the effective interest method and decreases its lease liabilities for lease payments made. The Company generally amortizes its ROU assets over the shorter of the estimated useful life and the lease term and assesses its ROU assets for impairment, similar to other long-lived assets.

For finance leases, amortization expense and interest expense are recognized separately in the Condensed Consolidated Statements of Operations, with amortization expense generally recorded on a straight-line basis and interest expense recorded using the effective interest method. For operating leases, a single lease cost is generally recognized in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Lease costs for short-term leases not recognized in the Condensed Consolidated Balance Sheets are recognized in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Variable lease costs not initially included in the lease liability and ROU asset impairment charges are expensed as incurred.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (ASU 2016-02). In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases” (ASU 2018-10), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU No. 2018-11, “Leases (Topic 842) - Targeted Improvements” (ASU 2018-11), which addresses implementation issues related to the new lease standard. These and certain other lease-related ASUs have generally been codified in ASC 842. ASC 842 supersedes the lease accounting requirements in Accounting Standards Codification Topic 840, Leases (ASC 840), and requires lessees to, among other things, recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases.

The Company adopted ASC 842 on January 1, 2019 for leases that existed on that date. The Company has elected to apply the provisions of ASC 842 modified retrospectively at January 1, 2019 through a cumulative-effect adjustment. Prior period results continue to be presented under ASC 840 based on the accounting standards originally in effect for such periods.

The Company has elected certain practical expedients permitted under the transition guidance within ASC 842 to leases that commenced before January 1, 2019, including the package of practical expedients. Due to the Company's election of the package of practical expedients, the Company has carried forward certain historical conclusions for expired or existing contracts, including conclusions relating to initial direct costs and to the existence and classification of leases.

As of January 1, 2019, as a result of adopting ASC 842, the Company recorded a net decrease of $3.6 million million to its Accumulated deficit.

The adoption of ASC 842 did not have a material effect on the Company's Loss from continuing operations or Net loss, or the related per-share amounts, during the three months ended March 31, 2019.

Standards issued not yet adopted



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 condensed consolidated financial statements.
Date of adoption: January 1, 2020.
ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	In June 2016, the FASB issued ASU 2016-13 which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU is effective for public companies in annual periods beginning after December 15, 2019, and interim periods within those years. Early adoption is permitted beginning after December 15, 2018 and interim periods within those years.	The Company is currently evaluating the impact of the adoption of this ASU on its condensed consolidated financial statements.
Date of adoption: January 1, 2020.

Revenue

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue

3. Revenue

Disaggregation of revenue

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



	Three Months Ended March 31, 2019								Three Months Ended March 31, 2018
	Cloud		Digital		Messaging		Total		Cloud		Digital		Messaging		Total
Geography
Americas	$	38,914	$	20,764	$	2,064	$	61,742	$	35,860	$	20,879	$	2,611	$	59,350
APAC	—		998		18,470		19,468		—		1,684		15,923		17,607
EMEA	1,796		1,089		4,010		6,895		2,444		448		3,860		6,752
Total	$	40,710	$	22,851	$	24,544	$	88,105	$	38,304	$	23,011	$	22,394	$	83,709

Service Line
Professional Services	$	3,718	$	4,248	$	12,015	$	19,981	$	3,444	$	5,708	$	4,559	$	13,711
Transaction Services	1,467		2,557		6		4,030		2,343		1,779		—		4,122
Subscription Services	35,489		15,916		9,010		60,415		32,129		15,077		8,779		55,985
License	36		130		3,513		3,679		388		447		9,056		9,891
Total	$	40,710	$	22,851	$	24,544	$	88,105	$	38,304	$	23,011	$	22,394	$	83,709

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 condensed 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 its records revenue on a professional services engagement but are not entitled to bill until the Company achieves specified milestones. Contract asset balance at March 31, 2019 is $3.7 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, 2019	$	116,942
Revenue recognized in the period	(76,737		)
Amounts billed but not recognized as revenue	71,578
Balance - March 31, 2019	$	111,783

________________________________


*	Comprised of Deferred Revenue

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 March 31, 2019. 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 March 31, 2019, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $313.8 million, of which approximately 95.9% 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.

Fair Value Measurements

3 Months Ended

Mar. 31, 2019

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:



	March 31, 2019
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash, cash equivalents and restricted cash ⁽¹⁾	$	90,294	$	90,294	$	—	$	—
Marketable securities-short term ⁽²⁾	19,674		—		19,674		—
Marketable securities-long term ⁽²⁾	369		—		369		—
Total assets	$	110,337	$	90,294	$	20,043	$	—
Temporary equity
Redeemable noncontrolling interests ⁽³⁾	$	12,500	$	—	$	—	$	12,500
Total temporary equity	$	12,500	$	—	$	—	$	12,500



	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

________________________________


⁽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.

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 three months ended March 31, 2019.

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 March 31, 2019 and 2018 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. Unrealized gains and losses related to our marketable equity securities were recognized in other income (expense), net.

At March 31, 2019 and December 31, 2018, the estimated fair value of investments in marketable debt securities, were as follows:



	March 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities - debt:
Municipal bonds	2,475		2		(3		)	2,474
Treasury bonds	9,929		—		—			9,929
Total	$	12,404	$	2	$	(3	)	$	12,403

As of March 31, 2019, the aggregate related fair value of investment with unrealized losses was approximately $1.2 million.



	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, the aggregate related fair value of investment with unrealized losses was approximately $14.9 million.

The contractual maturities of marketable debt securities were as follows:



	March 31, 2019
	Amortized Cost		Fair Value
Due within one year	$	12,035	$	12,034
Due after 1 year through 5 years	67		67
Due after 5 years through 10 years	302		302
Due after 10 years	—		—
Total marketable securities - debt	$	12,404	$	12,403

At March 31, 2019 and December 31, 2018, the estimated fair value of investments in marketable equity securities, were as follows:



Balance at December 31, 2018	$	4,161
Mutual funds purchases	3,479
Realized gains (losses)	—
Balance at March 31, 2019	$	7,640

Redeemable Noncontrolling Interests

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

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

The changes in fair value of the Company’s Level 3 redeemable noncontrolling interests during the three months ended March 31, 2019 were as follows:



Balance at December 31, 2018	$	12,500
Fair value adjustment	(313		)
Net loss attributable to redeemable noncontrolling interests	313
Balance at March 31, 2019	$	12,500

- Definition

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

+ References + Details

Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

5. Leases

We have entered into contracts with third parties to lease a variety of assets, including certain real estate, equipment, automobiles and other assets. Our leases frequently allow for lease payments that could vary based on factors such as inflation or the degree of utilization of the underlying asset. For example, certain of our real estate leases could require us to make payments that vary based on common area maintenance charges, insurance and other charges. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

We are party to certain sublease arrangements, primarily related to our real estate leases, where we act as the lessee and intermediate lessor. The Company does not have material sublease arrangements.

The following table presents information about the Company's ROU assets and lease liabilities at March 31, 2019 (in thousands):



ROU assets:
Non-current operating lease ROU assets	$	64,747

Operating lease liabilities:
Current operating lease liabilities*	$	7,230
Non-current operating lease liabilities	66,559
Total operating lease liabilities	$	73,789

________________________________


*	Amounts are included in Accrued Expenses on Condensed Consolidated Balance Sheets.

The following table presents information about lease expense and sublease income for the three months ended March 31, 2019 (in thousands):



Operating lease cost*	$	3,434
Other lease costs and income:
Variable lease costs*	408
Sublease income*	(695		)

Total net lease cost	$	3,147

________________________________


*	Amounts are included in Cost of revenues, Selling, general and administrative and/or Research and development based on the function that the underlying leased asset supports which are reflected in the Condensed Consolidated Statements of Operations.

The following table provides the undiscounted amount of future cash flows included in our lease liabilities at March 31, 2019 for each of the five years subsequent to December 31, 2018 and thereafter, as well as a reconciliation of such undiscounted cash flows to our lease liabilities at March 31, 2019 (in thousands):



	Operating Leases
Remainder of 2019	$	9,491
2020	13,448
2021	12,621
2022	12,111
2023	10,056
Thereafter	43,646
Total future lease payments	101,373
Less: amount representing interest	(27,584		)
Present value of future lease payments (lease liability)	$	73,789

The following table provides the weighted-average remaining lease term and weighted-average discount rates for our leases as of March 31, 2019:



Operating Leases:
Weighted-average remaining lease term (years), weighted based on lease liability balances	8.23
Weighted-average discount rate (percentages), weighted based on the remaining balance of lease payments	8.0	%

The following table provides certain cash flow and supplemental noncash information related to our lease liabilities for the three months ended March 31, 2019 (in thousands):



Operating Leases:
Cash paid for amounts included in the measurement of lease liabilities	$	3,068
Lease liabilities arising from obtaining right-of-use assets	—

Investments in Affiliates and Related Transactions	3 Months Ended
Investments in Affiliates and Related Transactions	Mar. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]
Investments in Affiliates and Related Transactions	6. Investments in Affiliates and Related Transactions Sequential Technology International, LLC 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 Sequential Technology International, LLC (“STIN”) access to certain Synchronoss software and private branch exchange systems to facilitate exception handling operations required to support STIN customers. For the three months ended March 31, 2019 and 2018, the Company recognized $6.4 million and $6.4 million, respectively in revenue related to Cloud Telephony and Support services, and $0.0 million and $0.5 million, respectively, in revenue related to all other services. The STIN affiliate accounts receivable balances in the Condensed Consolidated Balance Sheet as of March 31, 2019 and December 31, 2018, were $30.5 million and $27.5 million, respectively. These amounts principally included revenues generated from the Cloud and Telephony Support Services agreement and pass-through of vendor expenses incurred during the transition and assignment of vendor contracts.

Debt

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Debt

7. Debt

Total debt consists of the following:



	March 31, 2019			December 31, 2018
Convertible Senior Notes	$	97,429		$	113,980
Unamortized debt issuance cost ⁽¹⁾	(224		)	(438		)
Total debt, carrying value	$	97,205		$	113,542
Total short-term debt, carrying value	$	97,205		$	113,542

________________________________


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

Convertible Senior Notes

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

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

Holders of the 2019 Notes who convert their notes in connection with a qualifying fundamental change, as defined in the related indenture, may be entitled to a make-whole premium in the form of an increase in the conversion rate. Additionally, following the occurrence of a fundamental change, holders may require that the Company repurchase some or all of the 2019 Notes for cash at a repurchase price equal to 100% of the principal amount of the notes being repurchased, plus accrued and unpaid interest, if any. As of March 31, 2019, none of these conditions existed with respect to the 2019 Notes.

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.

At March 31, 2019, the carrying amount of the liability was $97.2 million and the outstanding principal of the 2019 Notes was $97.4 million, with an effective interest rate of approximately 1.37%. The fair value of the 2019 Notes was $95.9 million at March 31, 2019. The fair value of the liability of the 2019 Notes was determined using a discounted cash flow model based on current market interest rates available to the Company. These inputs are corroborated by observable market data for similar liabilities and therefore classified within Level 2 of the fair-value hierarchy.

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

The Company received a notice of default from holders of more than 25% of the outstanding principal amount of the 2019 Notes on October 13, 2017. In accordance with the terms of the 2019 Notes, the Company elected to begin paying additional interest starting January 11, 2018 (the 90^th day following the Company’s receipt of the notice of default). As a result of the Company regaining compliance with its SEC filing requirements, the Company was no longer required to pay the additional interest as of July 9, 2018. The Company was required to record a derivative related to this contingent interest as a liability and expense in its financial statements due to the late filings of the Company’s quarterly reports on Form 10-Q in 2017. At March 31, 2019, the recorded contingent interest derivative liability within accrued expenses was zero as a result of Company regaining compliance with its SEC filing requirements.

Interest expense

The following table summarizes the Company’s interest expense:



	Three Months Ended March 31,
	2019		2018
Convertible Senior Notes
Amortization of debt issuance costs	155		353
Interest on borrowings	191		431
Additional interest on default	—		129
Capital leases	—		242
Other	239		92
Total	$	585	$	1,247

Accumulated Other Comprehensive (Loss) / Income

3 Months Ended

Mar. 31, 2019

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

Accumulated Other Comprehensive (Loss) / Income

8. Accumulated Other Comprehensive (Loss) / Income

The changes in accumulated other comprehensive (loss) income during the three months ended March 31, 2019 were as follows:



	Balance at December 31, 2018			Other comprehensive loss			Tax effect		Balance at March 31, 2019
Foreign currency	$	(26,436	)	$	(295	)	$	—	$	(26,731	)
Unrealized loss on intra-entity foreign currency transactions	(3,906		)	(538		)	155		(4,289		)
Unrealized holding losses on marketable debt securities	(41		)	(905		)	—		(946		)
Total	$	(30,383	)	$	(1,738	)	$	155	$	(31,966	)

Stockholders' Equity

3 Months Ended

Mar. 31, 2019

Stockholders' Equity Note [Abstract]

Stockholders' Equity

9. Stockholders’ Equity

There were no significant changes to Company’s authorized capital stock and preferred stock during the three months ended March 31, 2019.

Common Stock

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

Preferred Stock

The Board of Directors is authorized to issue preferred shares and has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences of preferred stock.

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

As of March 31, 2019, 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 of Series A Preferred Stock as dividends.

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 March 31, 2019, the Liquidation Value and Redemption Value of the Preferred Shares was $243.1 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 March 31, 2019 and changes during the three months ended March 31, 2019, are presented below:



	Preferred Stock
	Shares	Amount
Balance at December 31, 2018	195	$	176,603
Issuance of preferred stock	—	—
Initial discount and issuance costs related to preferred stock	—	—
Amortization of preferred stock issuance costs	—	462
Issuance of preferred PIK dividend	—	—
Balance at March 31, 2019	195	$	177,065

Registration Rights

There were no significant changes to the Company’s registration rights during the three months ended March 31, 2019.

Stock Plans

3 Months Ended

Mar. 31, 2019

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

Stock Plans

There were no significant changes to the Company’s Stock Plans during the three months ended March 31, 2019. As of March 31, 2019, there were zero shares available for the grant or award under the Company’s 2015 Plan and 0.3 million shares available for the grant or award under the Company’s new hire equity incentive plan.

During the three months ended March 31, 2019, the Company granted awards to purchase an aggregate of insignificant number of shares under the Company’s 2015 Plan, none of which awards are vested as of March 31, 2019. 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 as the Company’s performance cash awards granted to executives under the 2019-2021 LTI Plan 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 March 31, 2019, the liability for such awards is approximately $0.2 million.

Stock-Based Compensation

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



	Three Months Ended March 31,
	2019		2018
Cost of revenues	$	686	$	1,112
Research and development	1,225		1,540
Selling, general and administrative	3,644		4,534
Total stock-based compensation expense	$	5,555	$	7,186

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



	Three Months Ended March 31,
	2019		2018
Stock options	$	1,697	$	1,760
Restricted stock awards	3,858		5,426
Employee Stock Purchase Plan	—		—
Total stock-based compensation before taxes	5,555		7,186
Tax benefit	$	1,058	$	2,423

The total stock-based compensation cost related to unvested equity awards as of March 31, 2019 was approximately $34.6 million. The expense is expected to be recognized over a weighted-average period of approximately 2.23 years.

Stock Options

There were no significant changes to the Company’s Stock Option Plans during the three months ended March 31, 2019.

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



	Three Months Ended March 31,
	2019			2018
Expected stock price volatility	69.2		%	64.5		%
Risk-free interest rate	2.5		%	2.5		%
Expected life of options (in years)	4.23			4.09
Expected dividend yield	0.0		%	0.0		%
Weighted-average fair value (grant date) of the options	$	3.95		$	4.17

The following table summarizes information about stock options outstanding as of March 31, 2019:



Options	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2018	4,254		$	17.93
Options Granted	167		7.79
Options Exercised	—		—
Options Cancelled	(273	)	29.31
Outstanding at March 31, 2019	4,148		$	16.77	4.97	$	33
Vested at March 31, 2019	1,470		$	26.61	3.67	$	—
Exercisable at March 31, 2019	1,470		$	26.61	3.67	$	—

The total intrinsic value for stock options exercisable at March 31, 2019 and 2018 was nil for both periods. The total intrinsic value of stock options exercised for the three months ended March 31, 2019 and 2018 was nil for both periods.

Awards of Restricted Stock and Performance Stock

There were no significant changes to the Company’s restricted stock award (“Restricted Stock”) and performance stock plan during the three months ended March 31, 2019 from December 31, 2018.

A summary of the Company’s unvested restricted stock at March 31, 2019, and changes during the three months ended March 31, 2019, is presented below:



Unvested Restricted Stock	Number of Awards		Weighted- Average Grant Date Fair Value
Unvested at December 31, 2018	2,700		$	12.71
Granted ⁽¹⁾	124		7.17
Vested	(407	)	17.30
Forfeited	(52	)	13.74
Unvested at March 31, 2019 ⁽²⁾	2,365		$	11.62

________________________________

⁽¹⁾ Includes 31 performance-based cash units.


⁽²⁾	Includes 102 performance-based cash units.

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.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	10. Income Taxes The Company recognized approximately $1.4 million in related income tax benefit and $0.1 million in related tax provision during the three months ended March 31, 2019 and 2018, respectively. The effective tax rate was approximately 6.6% for the three months ended March 31, 2019, which was lower than the U.S. federal statutory rate primarily due to the valuation allowances recorded in domestic and foreign jurisdictions offset by certain jurisdictions projecting current tax expense. The Company considered all available evidence, including historical profitability and projections of future taxable income together with new evidence, both positive and negative, that could affect the view of the future realization of deferred tax assets. As a result of the assessment, no change was recorded by the Company to the valuation allowance during the three months ended March 31, 2019.

Earnings per Common Share (EPS)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings per Common Share (EPS)

12. Earnings per Common Share (“EPS”)

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

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



	Three Months Ended March 31,
	2019			2018
Numerator - Basic:
Net loss from operations	$	(19,737	)	$	(37,977	)
Net (income) loss attributable to redeemable noncontrolling interests	(313		)	1,285
Preferred stock dividend	(7,537		)	(3,353		)
Net loss attributable to Synchronoss	$	(27,587	)	$	(40,045	)

Numerator - Diluted:
Net loss from operations attributable to Synchronoss	$	(27,587	)	$	(40,045	)
Income effect for interest on convertible debt, net of tax	—			—
Net loss attributable to Synchronoss	$	(27,587	)	$	(40,045	)

Denominator:
Weighted average common shares outstanding — basic	40,320			42,181
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	40,320			42,181

Earnings per share:
Basic	$	(0.68	)	$	(0.95	)
Diluted	$	(0.68	)	$	(0.95	)

Anti-dilutive stock options excluded	—			2,441
Unvested shares of restricted stock awards	2,365			1,855


⁽¹⁾	The calculation does not include the effect of assumed conversion of convertible debt of 1,957,105 shares for 2019 and 4,325,646, for 2018, which is based on 18.8072 shares per $1,000 principal amount of the 2019 Notes.


⁽²⁾	The calculation for 2019 period does not include the effect of assumed conversion of preferred stock of 10,843,394 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.

Restructuring

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring

11. Restructuring

Throughout 2017 and in 2018, 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 workforce optimization opportunities to better align the Company’s resources with its key strategic priorities.

A summary of the Company’s restructuring accrual at March 31, 2019 and changes during the three months ended March 31, 2019, are presented below:



	Balance at December 31, 2018		Charges		Payments			Balance at March 31, 2019
Employment termination costs	$	1,276	$	421	$	(1,250	)	$	447

Commitments, Contingencies and Other

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Other

13. Commitments, Contingencies and Other

Purchase Obligations

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



Year ending March 31,	Colocation
Remainder of 2019	$	14,795
2020	18,641
2021	43
2022	—
2023 and thereafter	—
	$	33,479

Legal Matters	3 Months Ended
Legal Matters	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	Legal Matters On May 1, 2017, May 2, 2017, June 8, 2017 and June 14, 2017, four putative class actions were filed against the Company and certain of its current and former 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 our 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 our financial results, business operations, and prospects. The plaintiff seeks unspecified damages, fees, interest, and costs. Defendants’ motion to dismiss the second consolidated amended complaint is pending before the Court. The Company believes that the asserted claims lack merit, and 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 its financial position or results of operations. On September 15, 2017, October 24, 2017, October 27, 2017 and October 30, 2017, the Company’s shareholders filed derivative lawsuits against certain of its 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 current and former 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. Plaintiffs seek unspecified damages and for the Company to take steps to improve its corporate governance and internal procedures. Defendants filed a motion to stay the action, which is pending before the Court. Defendants also filed a motion to dismiss the action. Defendants have requested that the motion to dismiss will be briefed only in the event the requested stay is denied or later lifted. The Company believes that the asserted claims lack merit and 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 can give no assurance that the asserted claims will not have a material adverse effect on our 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 alleged that a “Fundamental Change” has occurred under the Indenture as a result of the Company’s Common Stock ceasing to be listed or quoted on Nasdaq and that an event of default under the Indenture has occurred as a result of the Company’s failure to provide a notice of such Fundamental Change which, if true, following notice from holders of more than 25% of the outstanding principal under the Notes would trigger the acceleration of the principal and interest outstanding under the 2019 Notes, which otherwise mature on August 15, 2019. On November 2, 2018, the parties filed a stipulation of dismissal of the BNY Action. 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 all of such counterclaims.

Additional Financial Information

3 Months Ended

Mar. 31, 2019

Other Income and Expenses [Abstract]

Additional Financial Information

14. Additional Financial Information

Other Income

The following table sets forth the components of Other Income included in the Condensed Consolidated Statements of Operations:



	Three Months Ended March 31,
	2019		2018
FX gains (losses) ⁽¹⁾	$	157	$	(237	)
Remeasurement gain (loss) on financial instrument ⁽²⁾	—		3,849
Others ⁽³⁾	306		670
Total	$	463	$	4,282

________________________________


⁽¹⁾	Fair value of foreign exchange gains and losses


⁽²⁾	Remeasurement of gain/loss on Mandatorily Redeemable Put option for common shares held by Siris.


⁽³⁾	Represents an aggregate of individually immaterial transactions

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	15. Subsequent Events Review Repayment of Convertible Note On April 2, 2019 and May 2, 2019, the Company repurchased approximately $31.8 million and $1.4 million of 2019 Notes, respectively.

Basis of Presentation and Consolidation (Policies)

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Consolidation

Restricted Cash

Leases

For each lease, the Company must then determine:

•The present value of lease payments is calculated based on:

Recently Issued Accounting Standards

Recent accounting pronouncements adopted



Standard	Description	Effect on the financial statements
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 adoption of this standard does not have a material effect on the Company’s condensed consolidated financial statements.
Date of adoption: January 1, 2019.
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 adoption of this standard does not have a material effect on the Company’s condensed consolidated financial statements.
Date of adoption: January 1, 2020.

Leases

For each lease, the Company must then determine:

•The present value of lease payments is calculated based on:

As of January 1, 2019, as a result of adopting ASC 842, the Company recorded a net decrease of $3.6 million million to its Accumulated deficit.

The adoption of ASC 842 did not have a material effect on the Company's Loss from continuing operations or Net loss, or the related per-share amounts, during the three months ended March 31, 2019.

Standards issued not yet adopted



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 condensed consolidated financial statements.
Date of adoption: January 1, 2020.
ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	In June 2016, the FASB issued ASU 2016-13 which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU is effective for public companies in annual periods beginning after December 15, 2019, and interim periods within those years. Early adoption is permitted beginning after December 15, 2018 and interim periods within those years.	The Company is currently evaluating the impact of the adoption of this ASU on its condensed consolidated financial statements.
Date of adoption: January 1, 2020.

Fair Value Measurements


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


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


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

Basis of Presentation and Consolidation (Tables)

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Impact of new accounting standard

Recent accounting pronouncements adopted



Standard	Description	Effect on the financial statements
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 adoption of this standard does not have a material effect on the Company’s condensed consolidated financial statements.
Date of adoption: January 1, 2019.
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 adoption of this standard does not have a material effect on the Company’s condensed consolidated financial statements.
Date of adoption: January 1, 2020.

Standards issued not yet adopted



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 condensed consolidated financial statements.
Date of adoption: January 1, 2020.
ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	In June 2016, the FASB issued ASU 2016-13 which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The ASU is effective for public companies in annual periods beginning after December 15, 2019, and interim periods within those years. Early adoption is permitted beginning after December 15, 2018 and interim periods within those years.	The Company is currently evaluating the impact of the adoption of this ASU on its condensed consolidated financial statements.
Date of adoption: January 1, 2020.

Revenue (Tables)

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue



	Three Months Ended March 31, 2019								Three Months Ended March 31, 2018
	Cloud		Digital		Messaging		Total		Cloud		Digital		Messaging		Total
Geography
Americas	$	38,914	$	20,764	$	2,064	$	61,742	$	35,860	$	20,879	$	2,611	$	59,350
APAC	—		998		18,470		19,468		—		1,684		15,923		17,607
EMEA	1,796		1,089		4,010		6,895		2,444		448		3,860		6,752
Total	$	40,710	$	22,851	$	24,544	$	88,105	$	38,304	$	23,011	$	22,394	$	83,709

Service Line
Professional Services	$	3,718	$	4,248	$	12,015	$	19,981	$	3,444	$	5,708	$	4,559	$	13,711
Transaction Services	1,467		2,557		6		4,030		2,343		1,779		—		4,122
Subscription Services	35,489		15,916		9,010		60,415		32,129		15,077		8,779		55,985
License	36		130		3,513		3,679		388		447		9,056		9,891
Total	$	40,710	$	22,851	$	24,544	$	88,105	$	38,304	$	23,011	$	22,394	$	83,709

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, 2019	$	116,942
Revenue recognized in the period	(76,737		)
Amounts billed but not recognized as revenue	71,578
Balance - March 31, 2019	$	111,783

________________________________


*	Comprised of Deferred Revenue

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Measurements of Assets and Liabilities

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

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



	March 31, 2019
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Cash, cash equivalents and restricted cash ⁽¹⁾	$	90,294	$	90,294	$	—	$	—
Marketable securities-short term ⁽²⁾	19,674		—		19,674		—
Marketable securities-long term ⁽²⁾	369		—		369		—
Total assets	$	110,337	$	90,294	$	20,043	$	—
Temporary equity
Redeemable noncontrolling interests ⁽³⁾	$	12,500	$	—	$	—	$	12,500
Total temporary equity	$	12,500	$	—	$	—	$	12,500



	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

________________________________


⁽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.

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

At March 31, 2019 and December 31, 2018, the estimated fair value of investments in marketable debt securities, were as follows:



	March 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities - debt:
Municipal bonds	2,475		2		(3		)	2,474
Treasury bonds	9,929		—		—			9,929
Total	$	12,404	$	2	$	(3	)	$	12,403

As of March 31, 2019, the aggregate related fair value of investment with unrealized losses was approximately $1.2 million.



	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

Expected maturities

The contractual maturities of marketable debt securities were as follows:



	March 31, 2019
	Amortized Cost		Fair Value
Due within one year	$	12,035	$	12,034
Due after 1 year through 5 years	67		67
Due after 5 years through 10 years	302		302
Due after 10 years	—		—
Total marketable securities - debt	$	12,404	$	12,403

Estimated fair value of investments in marketable equity securities

At March 31, 2019 and December 31, 2018, the estimated fair value of investments in marketable equity securities, were as follows:



Balance at December 31, 2018	$	4,161
Mutual funds purchases	3,479
Realized gains (losses)	—
Balance at March 31, 2019	$	7,640

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 three months ended March 31, 2019 were as follows:



Balance at December 31, 2018	$	12,500
Fair value adjustment	(313		)
Net loss attributable to redeemable noncontrolling interests	313
Balance at March 31, 2019	$	12,500

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Components of Lease Expense

The following table presents information about the Company's ROU assets and lease liabilities at March 31, 2019 (in thousands):



ROU assets:
Non-current operating lease ROU assets	$	64,747

Operating lease liabilities:
Current operating lease liabilities*	$	7,230
Non-current operating lease liabilities	66,559
Total operating lease liabilities	$	73,789

________________________________


*	Amounts are included in Accrued Expenses on Condensed Consolidated Balance Sheets.

The following table presents information about lease expense and sublease income for the three months ended March 31, 2019 (in thousands):



Operating lease cost*	$	3,434
Other lease costs and income:
Variable lease costs*	408
Sublease income*	(695		)

Total net lease cost	$	3,147

________________________________


*	Amounts are included in Cost of revenues, Selling, general and administrative and/or Research and development based on the function that the underlying leased asset supports which are reflected in the Condensed Consolidated Statements of Operations.

Maturities of Operating Lease Liabilities



	Operating Leases
Remainder of 2019	$	9,491
2020	13,448
2021	12,621
2022	12,111
2023	10,056
Thereafter	43,646
Total future lease payments	101,373
Less: amount representing interest	(27,584		)
Present value of future lease payments (lease liability)	$	73,789

Operating Assets and Liabilities

The following table provides the weighted-average remaining lease term and weighted-average discount rates for our leases as of March 31, 2019:



Operating Leases:
Weighted-average remaining lease term (years), weighted based on lease liability balances	8.23
Weighted-average discount rate (percentages), weighted based on the remaining balance of lease payments	8.0	%

The following table provides certain cash flow and supplemental noncash information related to our lease liabilities for the three months ended March 31, 2019 (in thousands):



Operating Leases:
Cash paid for amounts included in the measurement of lease liabilities	$	3,068
Lease liabilities arising from obtaining right-of-use assets	—

Debt (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Schedule of Debt

Total debt consists of the following:



	March 31, 2019			December 31, 2018
Convertible Senior Notes	$	97,429		$	113,980
Unamortized debt issuance cost ⁽¹⁾	(224		)	(438		)
Total debt, carrying value	$	97,205		$	113,542
Total short-term debt, carrying value	$	97,205		$	113,542

________________________________


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

Schedule of Long-term Debt Instruments

The following table summarizes the Company’s interest expense:



	Three Months Ended March 31,
	2019		2018
Convertible Senior Notes
Amortization of debt issuance costs	155		353
Interest on borrowings	191		431
Additional interest on default	—		129
Capital leases	—		242
Other	239		92
Total	$	585	$	1,247

- Definition

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

+ References

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

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

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

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

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

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

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

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

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

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

+ Details

Accumulated Other Comprehensive (Loss) / Income (Tables)

3 Months Ended

Mar. 31, 2019

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

Schedule of changes in accumulated other comprehensive income (loss)

The changes in accumulated other comprehensive (loss) income during the three months ended March 31, 2019 were as follows:



	Balance at December 31, 2018			Other comprehensive loss			Tax effect		Balance at March 31, 2019
Foreign currency	$	(26,436	)	$	(295	)	$	—	$	(26,731	)
Unrealized loss on intra-entity foreign currency transactions	(3,906		)	(538		)	155		(4,289		)
Unrealized holding losses on marketable debt securities	(41		)	(905		)	—		(946		)
Total	$	(30,383	)	$	(1,738	)	$	155	$	(31,966	)

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2019

Stockholders' Equity Note [Abstract]

Series A preferred stock

A summary of the Company’s Series A Convertible Participating Perpetual Preferred Stock balance at March 31, 2019 and changes during the three months ended March 31, 2019, are presented below:



	Preferred Stock
	Shares	Amount
Balance at December 31, 2018	195	$	176,603
Issuance of preferred stock	—	—
Initial discount and issuance costs related to preferred stock	—	—
Amortization of preferred stock issuance costs	—	462
Issuance of preferred PIK dividend	—	—
Balance at March 31, 2019	195	$	177,065

Earnings per Common Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

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



	Three Months Ended March 31,
	2019			2018
Numerator - Basic:
Net loss from operations	$	(19,737	)	$	(37,977	)
Net (income) loss attributable to redeemable noncontrolling interests	(313		)	1,285
Preferred stock dividend	(7,537		)	(3,353		)
Net loss attributable to Synchronoss	$	(27,587	)	$	(40,045	)

Numerator - Diluted:
Net loss from operations attributable to Synchronoss	$	(27,587	)	$	(40,045	)
Income effect for interest on convertible debt, net of tax	—			—
Net loss attributable to Synchronoss	$	(27,587	)	$	(40,045	)

Denominator:
Weighted average common shares outstanding — basic	40,320			42,181
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	40,320			42,181

Earnings per share:
Basic	$	(0.68	)	$	(0.95	)
Diluted	$	(0.68	)	$	(0.95	)

Anti-dilutive stock options excluded	—			2,441
Unvested shares of restricted stock awards	2,365			1,855


⁽¹⁾	The calculation does not include the effect of assumed conversion of convertible debt of 1,957,105 shares for 2019 and 4,325,646, for 2018, which is based on 18.8072 shares per $1,000 principal amount of the 2019 Notes.


⁽²⁾	The calculation for 2019 period does not include the effect of assumed conversion of preferred stock of 10,843,394 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.

Restructuring (Tables)

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Summary of the restructuring accrual and changes

A summary of the Company’s restructuring accrual at March 31, 2019 and changes during the three months ended March 31, 2019, are presented below:



	Balance at December 31, 2018		Charges		Payments			Balance at March 31, 2019
Employment termination costs	$	1,276	$	421	$	(1,250	)	$	447

Stock Plans (Tables)

3 Months Ended

Mar. 31, 2019

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:



	Three Months Ended March 31,
	2019		2018
Cost of revenues	$	686	$	1,112
Research and development	1,225		1,540
Selling, general and administrative	3,644		4,534
Total stock-based compensation expense	$	5,555	$	7,186

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



	Three Months Ended March 31,
	2019		2018
Stock options	$	1,697	$	1,760
Restricted stock awards	3,858		5,426
Employee Stock Purchase Plan	—		—
Total stock-based compensation before taxes	5,555		7,186
Tax benefit	$	1,058	$	2,423

Schedule of fair value assumptions

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



	Three Months Ended March 31,
	2019			2018
Expected stock price volatility	69.2		%	64.5		%
Risk-free interest rate	2.5		%	2.5		%
Expected life of options (in years)	4.23			4.09
Expected dividend yield	0.0		%	0.0		%
Weighted-average fair value (grant date) of the options	$	3.95		$	4.17

Schedule of information about stock options outstanding

The following table summarizes information about stock options outstanding as of March 31, 2019:



Options	Number of Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2018	4,254		$	17.93
Options Granted	167		7.79
Options Exercised	—		—
Options Cancelled	(273	)	29.31
Outstanding at March 31, 2019	4,148		$	16.77	4.97	$	33
Vested at March 31, 2019	1,470		$	26.61	3.67	$	—
Exercisable at March 31, 2019	1,470		$	26.61	3.67	$	—

Summary of unvested restricted stock activity

A summary of the Company’s unvested restricted stock at March 31, 2019, and changes during the three months ended March 31, 2019, is presented below:



Unvested Restricted Stock	Number of Awards		Weighted- Average Grant Date Fair Value
Unvested at December 31, 2018	2,700		$	12.71
Granted ⁽¹⁾	124		7.17
Vested	(407	)	17.30
Forfeited	(52	)	13.74
Unvested at March 31, 2019 ⁽²⁾	2,365		$	11.62

________________________________

⁽¹⁾ Includes 31 performance-based cash units.


⁽²⁾	Includes 102 performance-based cash units.

Commitments, Contingencies and Other (Tables)

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

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

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



Year ending March 31,	Colocation
Remainder of 2019	$	14,795
2020	18,641
2021	43
2022	—
2023 and thereafter	—
	$	33,479

Additional Financial Information (Tables)

3 Months Ended

Mar. 31, 2019

Other Income and Expenses [Abstract]

Components of other (expense) income, net

The following table sets forth the components of Other Income included in the Condensed Consolidated Statements of Operations:



	Three Months Ended March 31,
	2019		2018
FX gains (losses) ⁽¹⁾	$	157	$	(237	)
Remeasurement gain (loss) on financial instrument ⁽²⁾	—		3,849
Others ⁽³⁾	306		670
Total	$	463	$	4,282

________________________________


⁽¹⁾	Fair value of foreign exchange gains and losses


⁽²⁾	Remeasurement of gain/loss on Mandatorily Redeemable Put option for common shares held by Siris.


⁽³⁾	Represents an aggregate of individually immaterial transactions

Basis of Presentation and Consolidation - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated deficit	$ (249,776)	$ (233,299)

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Net revenues	$ 88,105	$ 83,709
Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	19,981	13,711
Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	4,030	4,122
Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	60,415	55,985
License
Disaggregation of Revenue [Line Items]
Net revenues	3,679	9,891
Americas
Disaggregation of Revenue [Line Items]
Net revenues	61,742	59,350
APAC
Disaggregation of Revenue [Line Items]
Net revenues	19,468	17,607
EMEA
Disaggregation of Revenue [Line Items]
Net revenues	6,895	6,752
Cloud
Disaggregation of Revenue [Line Items]
Net revenues	40,710	38,304
Cloud \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	3,718	3,444
Cloud \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	1,467	2,343
Cloud \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	35,489	32,129
Cloud \| License
Disaggregation of Revenue [Line Items]
Net revenues	36	388
Cloud \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	38,914	35,860
Cloud \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	0	0
Cloud \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	1,796	2,444
Digital
Disaggregation of Revenue [Line Items]
Net revenues	22,851	23,011
Digital \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	4,248	5,708
Digital \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	2,557	1,779
Digital \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	15,916	15,077
Digital \| License
Disaggregation of Revenue [Line Items]
Net revenues	130	447
Digital \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	20,764	20,879
Digital \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	998	1,684
Digital \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	1,089	448
Messaging
Disaggregation of Revenue [Line Items]
Net revenues	24,544	22,394
Messaging \| Professional Services
Disaggregation of Revenue [Line Items]
Net revenues	12,015	4,559
Messaging \| Transaction Services
Disaggregation of Revenue [Line Items]
Net revenues	6	0
Messaging \| Subscription Services
Disaggregation of Revenue [Line Items]
Net revenues	9,010	8,779
Messaging \| License
Disaggregation of Revenue [Line Items]
Net revenues	3,513	9,056
Messaging \| Americas
Disaggregation of Revenue [Line Items]
Net revenues	2,064	2,611
Messaging \| APAC
Disaggregation of Revenue [Line Items]
Net revenues	18,470	15,923
Messaging \| EMEA
Disaggregation of Revenue [Line Items]
Net revenues	$ 4,010	$ 3,860

Revenue - Contract Assets and Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Contract asset, balance	$ 3,700
Changes In Contract Liabilities [Roll Forward]
Contract liabilities, beginning balance	116,942
Revenue recognized in the period	(76,737)
Amounts billed but not recognized as revenue	71,578
Contract liabilities, ending balance	$ 111,783

Revenue - Remaining Performance Obligations (Details) $ in Millions	Mar. 31, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 313.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, percent	95.90%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	2 years

Fair Value Measurements - Hierarchy (Details) - USD ($)	3 Months Ended
Fair Value Measurements - Hierarchy (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Assets
Cash, cash equivalents and restricted cash	$ 90,294,000	$ 109,860,000
Marketable securities-short term	19,674,000	28,230,000
Marketable securities-long term	369,000	6,658,000
Total assets	110,337,000	144,748,000
Temporary equity
Redeemable noncontrolling interests	12,500,000	12,500,000
Total temporary equity	12,500,000	12,500,000
Transfers between Levels
Fair value of asset transfers between Levels 1, 2, and 3	0
Level 1
Assets
Cash, cash equivalents and restricted cash	90,294,000	109,860,000
Marketable securities-short term	0	0
Marketable securities-long term	0	0
Total assets	90,294,000	109,860,000
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	19,674,000	28,230,000
Marketable securities-long term	369,000	6,658,000
Total assets	20,043,000	34,888,000
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	0
Total assets	0	0
Temporary equity
Redeemable noncontrolling interests	12,500,000	12,500,000
Total temporary equity	$ 12,500,000	$ 12,500,000

Fair Value Measurements - AFS Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortized Cost to Fair Value
Amortized Cost	$ 12,404	$ 30,776
Gross Unrealized Gains	2	0
Gross Unrealized Losses	(3)	(49)
Fair Value	12,403	30,727
Municipal bonds
Amortized Cost to Fair Value
Amortized Cost	2,475	10,913
Gross Unrealized Gains	2	0
Gross Unrealized Losses	(3)	(32)
Fair Value	2,474	10,881
Treasury bonds
Amortized Cost to Fair Value
Amortized Cost	9,929	15,685
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 9,929	15,685
Certificates of deposit
Amortized Cost to Fair Value
Amortized Cost		3,776
Gross Unrealized Gains		0
Gross Unrealized Losses		(16)
Fair Value		3,760
Corporate bonds
Amortized Cost to Fair Value
Amortized Cost		402
Gross Unrealized Gains		0
Gross Unrealized Losses		(1)
Fair Value		$ 401

Fair Value Measurements - AFS Securities in Unrealized Loss Position (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Aggregate fair value of investment with unrealized losses	$ 1.2	$ 14.9

Fair Value Measurements - AFS Securities Expected Maturities (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Amortized Cost
Due within one year	$ 12,035
Due after 1 year through 5 years	67
Due after 5 years through 10 years	302
Due after 10 years	0
Total available-for-sale debt securities	12,404
Fair Value
Due within one year	12,034
Due after 1 year through 5 years	67
Due after 5 years through 10 years	302
Due after 10 years	0
Total available-for-sale debt securities	$ 12,403

Fair Value Measurements - Marketable Securities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Changes In Marketable Securities [Roll Forward]
Balance at December 31, 2018	$ 4,161
Mutual funds purchases	3,479
Realized gains (losses)	0
Balance at March 31, 2019	$ 7,640

Fair Value Measurements - Level 3 Redeemable Noncontrolling Interests (Details) - Redeemable Noncontrolling Interests $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Changes in fair value of the Company’s Level 3 redeemable noncontrolling interests
Balance at December 31, 2018	$ 12,500
Fair value adjustment	(313)
Net loss attributable to redeemable noncontrolling interests	313
Balance at March 31, 2019	$ 12,500

Leases Components of Lease Expense (Details) $ in Thousands	3 Months Ended
Leases Components of Lease Expense (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Leases [Abstract]
Non-current operating lease ROU assets	$ 64,747
Current operating lease liabilities	7,230
Non-current operating lease liabilities	66,559
Total operating lease liabilities	73,789
Operating lease cost	3,434
Variable lease costs	408
Sublease income	(695)
Total net lease cost	$ 3,147

Leases Maturities of Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Leases [Abstract]
Remainder of 2019	$ 9,491
2020	13,448
2021	12,621
2022	12,111
2023	10,056
Thereafter	43,646
Total future lease payments	101,373
Less: amount representing interest	(27,584)
Present value of future lease payments (lease liability)	$ 73,789

Leases Operating Assets and Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Leases [Abstract]
Weighted-average remaining lease term (years), weighted based on lease liability balances	8 years 2 months 23 days
Weighted-average discount rate (percentages), weighted based on the remaining balance of lease payments	8.00%
Cash paid for amounts included in the measurement of lease liabilities	$ 3,068
Lease liabilities arising from obtaining right-of-use assets	$ 0

Investments in Affiliates and Related Transactions (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Dec. 31, 2018

Schedule of Equity Method Investments [Line Items]

Accounts receivable, net

^[1]

$ 108,939

$ 102,798

Discontinued Operations, Disposed of by Sale | BPO Divestiture

Schedule of Equity Method Investments [Line Items]

Discontinued operation after disposal, revenue

$ 500

Cloud Technology and Support | Discontinued Operations, Disposed of by Sale | BPO Divestiture

Schedule of Equity Method Investments [Line Items]

Discontinued operation after disposal, revenue

6,400

$ 6,400

Sequential Technology International, LLC

Schedule of Equity Method Investments [Line Items]

Accounts receivable, net

^[1]

$ 30,528

$ 27,532

Sequential Technology International, LLC | BPO Divestiture

Schedule of Equity Method Investments [Line Items]

Duration of services agreement

3 years

[1]	See Note 6. Investments in Affiliates and Related Transactions for related party transactions reflected in this account.

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Convertible Senior Notes	$ 97,429	$ 113,980
Unamortized debt issuance cost	(224)	(438)
Total debt, carrying value	97,205	113,542
Total short-term debt, carrying value	$ 97,205	$ 113,542

Debt - Convertible Senior Notes (Details) - USD ($)		3 Months Ended
Debt - Convertible Senior Notes (Details) - USD ($)	Aug. 12, 2014	Mar. 31, 2019	Dec. 31, 2018	Jun. 13, 2018	Oct. 13, 2017
Debt Instrument [Line Items]
Principal amount		$ 97,429,000	$ 113,980,000
Liability at fair value		0
2019 Notes
Debt Instrument [Line Items]
Convertible senior notes	$ 230,000,000.0	97,400,000.0
Interest rate, as a percent	0.75%
Principal amount	$ 230,000,000	$ 97,200,000
Debt issuance costs	$ 7,100,000
Conversion ratio	0.0188072	0.0188072
Conversion price (in dollar per share)	$ 53.17
Repurchase price, expressed as a percentage of principal of debt repurchased	100.00%
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%
Interest rate, effective percentage		1.37%
Long-term debt, fair value		$ 95,900,000

Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
Debt - Interest Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 155	$ 353
Capital leases	0	242
Other	239	92
Total	585	1,247
2019 Notes
Debt Instrument [Line Items]
Amortization of debt issuance costs	155	353
Interest on borrowings	191	431
Additional interest on default	$ 0	$ 129

Accumulated Other Comprehensive (Loss) / Income - Changes in AOCI (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Changes in accumulated other comprehensive income (loss)
Beginning balance	$ 188,909
Ending balance	169,400
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss)
Beginning balance	(30,383)
Other comprehensive loss	(1,738)
Tax effect	155
Ending balance	(31,966)
Foreign currency
Changes in accumulated other comprehensive income (loss)
Beginning balance	(26,436)
Other comprehensive loss	(295)
Tax effect	0
Ending balance	(26,731)
Unrealized loss on intra-entity foreign currency transactions
Changes in accumulated other comprehensive income (loss)
Beginning balance	(3,906)
Other comprehensive loss	(538)
Tax effect	155
Ending balance	(4,289)
Unrealized holding losses on marketable debt securities
Changes in accumulated other comprehensive income (loss)
Beginning balance	(41)
Other comprehensive loss	(905)
Tax effect	0
Ending balance	$ (946)

Stockholders' Equity - Capitalization Information (Details)		3 Months Ended
	Feb. 15, 2018 USD ($) director member vote registration $ / shares shares	Mar. 31, 2019 USD ($) vote $ / shares shares	Dec. 31, 2018 $ / shares shares
Class of Stock [Line Items]
Dividends \| $		$ 0
Preferred stock, shares issued (in shares) \| shares		195,000	0
Preferred stock, par value (in dollar per share) \| $ / shares		$ 0.0001	$ 0.0001
Preferred stock, shares outstanding (in shares) \| shares		195,000	0
Dividend rate, percentage	14.50%
Convertible preferred stock, shares to be issued upon conversion (in shares) \| shares	55.5556
Convertible preferred stock, conversion price per share (in dollar per share) \| $ / shares	$ 18.00
Number of elected directors	4
Number of board of director members	10
Number of board of director members elected by preferred stock holders	2
Number of board of directors agreed upon to be elected meeting independence criteria	4
Number of board of directors elected meeting independence criteria	2
Minimum number of board of director members that preferred stock holders can appoint pursuant to certification	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 issued (in shares) \| shares	185,000
Preferred stock, shares outstanding (in shares) \| shares		195,181
Preferred stock, dividends (in shares) \| shares		10,181
Preferred stock, liquidation preference \| $		$ 243,100,000
Preferred stock, redemption amount \| $		$ 243,100,000
Ten Percent or Greater Ownership
Class of Stock [Line Items]
Number of elected directors \| member	2
Preferred stock, ownership percentage	10.00%
Greater than Five and Less than Ten Percent Ownership
Class of Stock [Line Items]
Number of elected directors \| member	1
Minimum \| Greater than Five and Less than Ten Percent Ownership
Class of Stock [Line Items]
Preferred stock, ownership percentage	5.00%
Maximum \| Greater than Five and Less than Ten Percent Ownership
Class of Stock [Line Items]
Preferred stock, ownership percentage	10.00%
Silver Private Holdings I, LLC
Class of Stock [Line Items]
Preferred stock, shares issued (in shares) \| shares	185,000
Preferred stock, par value (in dollar per share) \| $ / shares	$ 0.0001
Preferred stock, liquidation preference (in dollar per share) \| $ / shares	$ 1,000
Consideration received on transaction \| $	$ 97,700,000
Number of shares repurchased under program (in shares) \| shares		5,994,667
Fair value, approval threshold \| $	10,000,000
Fair market value of transaction, individual \| $	5,000,000
Fair market value of transaction, aggregate \| $	10,000,000
Capital expenditure threshold \| $	$ 25,000,000
Percentage ownership after conversion	19.90%
Voting percentage threshold of ownership	19.99%
Minimum number of board of director members that preferred stock holders can appoint pursuant to certification	2
Chief Executive Officer
Class of Stock [Line Items]
Number of elected directors	1
Board of Directors Chairman
Class of Stock [Line Items]
Number of elected directors	1

Stockholders' Equity - Preferred Stock (Details) - Preferred Stock shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) shares
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning balance (in shares) \| shares	195
Beginning balance	$ 176,603
Issuance of preferred stock (in shares) \| shares	0
Issuance of preferred stock	$ 0
Initial discount and issuance costs related to preferred stock	0
Amortization of preferred stock issuance costs	$ 462
Issuance of preferred PIK dividend (in shares) \| shares	0
Issuance of preferred PIK dividend	$ 0
Ending balance (in shares) \| shares	195
Ending balance	$ 177,065

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (1,391)	$ 125
Effective tax rate	6.60%

Earnings per Common Share (Details) $ / shares in Units, $ in Thousands		3 Months Ended
	Aug. 12, 2014	Mar. 31, 2019 USD ($) $ / shares shares	Mar. 31, 2018 USD ($) $ / shares shares	Feb. 15, 2018 shares
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract]
Net loss from operations \| $		$ (19,737)	$ (37,977)
Net (income) loss attributable to redeemable noncontrolling interests \| $		(313)	1,285
Preferred stock dividend \| $		(7,537)	(3,353)
Net loss attributable to Synchronoss \| $		(27,587)	(40,045)
Net loss from operations attributable to Synchronoss \| $		(27,587)	(40,045)
Income effect for interest on convertible debt, net of tax \| $		$ 0	$ 0
Weighted-average common shares outstanding:
Weighted average common shares outstanding - basic (in shares)		40,320,000	42,181,000
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Shares from assumed conversion of convertible debt (in shares)		0	0
Shares from assumed conversion of preferred stock (in shares)		0	0
Options and unvested restricted shares (in shares)		0	0
Weighted average common shares outstanding - diluted (in shares)		40,320,000	42,181,000
Earnings per share:
Basic (in dollar per share) \| $ / shares		$ (0.68)	$ (0.95)
Diluted (in dollar per share) \| $ / shares		$ (0.68)	$ (0.95)
Convertible preferred stock, shares to be issued upon conversion (in shares)				55.5556
2019 Notes
Earnings per share:
Conversion ratio	0.0188072	0.0188072
Restricted stock awards
Earnings per share:
Anti-dilutive stock options excluded (in shares)		2,365,000	1,855,000
Convertible Debt Securities
Earnings per share:
Anti-dilutive stock options excluded (in shares)		1,957,105	4,325,646
Employee Stock Option
Earnings per share:
Anti-dilutive stock options excluded (in shares)		0	2,441,000
Series A Preferred Stock
Earnings per share:
Anti-dilutive stock options excluded (in shares)		10,843,394

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended
Restructuring (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Restructuring accrual and changes
Charges	$ 421	$ 1,108
Accrued expenses
Restructuring accrual and changes
Balance at March 31, 2019	447
Employment termination costs \| Accrued expenses
Restructuring accrual and changes
Balance at December 31, 2018	1,276
Charges	421
Payments	$ (1,250)

Commitments, Contingencies and Other (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Colocation, 2019	$ 14,795
Colocation, 2020	18,641
Colocation, 2021	43
Colocation, 2022	0
Colocation, 2023 and thereafter	0
Colocation, total	$ 33,479

Stock Plans - Plan Information (Details) $ in Millions	Mar. 31, 2019 USD ($) shares
2015 Plan
Stockholder's Equity
Number of shares available for grant (in shares)	0
Liability, accrued expenses, non-vested \| $	$ 0.2
2017 New Hire Plan
Stockholder's Equity
Number of shares available for grant (in shares)	300,000

Stock Plans - Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based compensation expense
Total stock-based compensation expense	$ 5,555	$ 7,186
Tax benefit	1,058	2,423
Stock-based compensation cost related to non-vested equity awards not yet recognized as an expense	$ 34,600
Weighted-average period over which stock-based compensation cost related to non-vested equity awards is expected to be recognized	2 years 2 months 23 days
Employee Stock Purchase Plan
Share-based compensation expense
Total stock-based compensation expense	$ 0	0
Stock options
Share-based compensation expense
Total stock-based compensation expense	1,697	1,760
Restricted stock awards
Share-based compensation expense
Total stock-based compensation expense	3,858	5,426
Cost of revenues
Share-based compensation expense
Total stock-based compensation expense	686	1,112
Research and development
Share-based compensation expense
Total stock-based compensation expense	1,225	1,540
Selling, general and administrative
Share-based compensation expense
Total stock-based compensation expense	$ 3,644	$ 4,534

Stock Plans - Black-Scholes Assumptions (Details) - Stock options - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Weighted-average assumptions
Expected stock price volatility	69.20%	64.50%
Risk-free interest rate	2.50%	2.50%
Expected life of options (in years)	4 years 2 months 23 days	4 years 1 month 2 days
Expected dividend yield	0.00%	0.00%
Weighted-average fair value (grant date) of the options (in dollar per share)	$ 3.95	$ 4.17

Stock Plans - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Number of Options
Options outstanding at the beginning of the period (in shares)	4,254
Options Granted (in shares)	167
Options Exercised (in shares)	0
Options Cancelled (in shares)	(273)
Options outstanding at the end of the period (in shares)	4,148
Vested (in shares)	1,470
Exercisable (in shares)	1,470
Weighted-Average Exercise Price
Balance at the beginning of the period (in dollar per share)	$ 17.93
Options Granted (in dollar per share)	7.79
Options Exercised (in dollar per share)	0.00
Options Cancelled (in dollar per share)	29.31
Balance at the end of the period (in dollar per share)	16.77
Vested (in dollar per share)	26.61
Exercisable (in dollar per share)	$ 26.61
Weighted-Average Remaining Contractual Term (Years)
Outstanding	4 years 11 months 19 days
Vested	3 years 8 months 1 day
Exercisable	3 years 8 months 1 day
Aggregate Intrinsic Value
Outstanding	$ 33
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) - Restricted stock awards shares in Thousands	3 Months Ended
	Mar. 31, 2019 $ / shares shares
Number of Awards
Non-vested at the beginning of the period (in shares) \| shares	2,700
Granted (in shares) \| shares	124
Vested (in shares) \| shares	(407)
Forfeited (in shares) \| shares	(52)
Non-vested at the end of the period (in shares) \| shares	2,365
Weighted- Average Grant Date Fair Value
Non-vested at the beginning of the period (in dollar per share) \| $ / shares	$ 12.71
Granted (in dollar per share) \| $ / shares	7.17
Vested (in dollar per share) \| $ / shares	17.30
Forfeited (in dollar per share) \| $ / shares	13.74
Non-vested at the end of the period (in dollar per share) \| $ / shares	$ 11.62

Legal Matters (Details) - claim	1 Months Ended
Legal Matters (Details) - claim	Jun. 14, 2017	Jun. 13, 2018	Oct. 13, 2017
2019 Notes
Legal Matters
Debt default, percent of holders		25.00%	25.00%
Pending Litigation \| The Securities Law Actions
Legal Matters
Number of complaints filed	4

Additional Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other Income and Expenses [Abstract]
FX gains (losses)	$ 157	$ (237)
Remeasurement gain (loss) on financial instrument	0	3,849
Others	306	670
Total	$ 463	$ 4,282

Subsequent Events (Details) - 2019 Notes - Subsequent Event - USD ($) $ in Millions	May 02, 2019	Apr. 02, 2019
Subsequent Event [Line Items]
Debt repurchased	$ 1.4	$ 31.8
Debt repurchased, at discount	$ 1.4	$ 31.4
Debt repurchased, discount	0.75%	1.25%

Label	Element	Value
Accounting Standards Update 2016-02 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 3,573,000
Accounting Standards Update 2016-02 [Member] \| Retained Earnings [Member]
Retained Earnings (Accumulated Deficit)	us-gaap_RetainedEarningsAccumulatedDeficit	$ (3,573,000)