ARC DOCUMENT SOLUTIONS, INC., 10-Q filed on 5/4/2016
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2016
Apr. 29, 2016
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q1 
 
Entity Registrant Name
ARC Document Solutions, Inc. 
 
Entity Central Index Key
0001305168 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
47,278,061 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 16,793 
$ 23,963 
Accounts receivable, net of allowances for accounts receivable of $1,853 and $2,094
61,377 
60,085 
Inventories, net
18,529 
16,972 
Prepaid expenses
4,356 
4,555 
Other current assets
3,687 
4,131 
Total current assets
104,742 
109,706 
Property and equipment, net of accumulated depreciation of $205,486 and $202,457
56,247 
57,590 
Goodwill
212,608 
212,608 
Other intangible assets, net
16,872 
17,946 
Deferred income taxes
72,991 
74,196 
Other assets
2,501 
2,492 
Total assets
465,961 
474,538 
Current liabilities:
 
 
Accounts payable
21,385 
23,989 
Accrued payroll and payroll-related expenses
8,507 
12,118 
Accrued expenses
19,707 
19,194 
Current portion of long-term debt and capital leases
14,651 
14,374 
Total current liabilities
64,250 
69,675 
Long-term debt and capital leases
152,353 
157,018 
Deferred income taxes
36,490 
35,933 
Other long-term liabilities
2,869 
2,778 
Total liabilities
255,962 
265,404 
Commitments and contingencies (Note 6)
   
   
ARC Document Solutions, Inc. stockholders’ equity:
 
 
Preferred stock, $0.001 par value, 25,000 shares authorized; 0 shares issued and outstanding
0 
0 
Common stock, $0.001 par value, 150,000 shares authorized; 47,275 and 47,130 shares issued and 46,474 and 47,029 shares outstanding
47 
47 
Additional paid-in capital
115,842 
115,089 
Retained earnings
92,261 
89,687 
Accumulated other comprehensive loss
(1,928)
(2,097)
Total stockholders equity before adjustment of treasury stock
206,222 
202,726 
Less cost of common stock in treasury, 801 and 101 shares
3,345 
612 
Total ARC Document Solutions, Inc. stockholders’ equity
202,877 
202,114 
Noncontrolling interest
7,122 
7,020 
Total equity
209,999 
209,134 
Total liabilities and equity
$ 465,961 
$ 474,538 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Per Share data, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Allowances for accounts receivable
$ 1,853 
$ 2,094 
Accumulated depreciation on property and equipment
$ 205,486 
$ 202,457 
Preferred stock, par value
$ 0.001 
$ 0.001 
Preferred stock, shares authorized
25,000 
25,000 
Preferred stock, shares issued
0 
0 
Preferred stock, shares outstanding
0 
0 
Common stock, par value
$ 0.001 
$ 0.001 
Common stock, shares authorized
150,000 
150,000 
Common stock, shares issued
47,275 
47,130 
Common stock, shares outstanding
46,474 
47,029 
Treasury stock, shares
801 
101 
Condensed Consolidated Statements of Operations (USD $)
Share data in Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Income Statement [Abstract]
 
 
Service sales
$ 90,635,000 
$ 93,325,000 
Equipment and supplies sales
12,915,000 
10,994,000 
Total net sales
103,550,000 
104,319,000 
Cost of sales
69,813,000 
68,298,000 
Gross profit
33,737,000 
36,021,000 
Selling, general and administrative expenses
26,356,000 
27,455,000 
Amortization of intangible assets
1,313,000 
1,489,000 
Restructuring expense
2,000 
74,000 
Income from operations
6,066,000 
7,003,000 
Other income, net
(23,000)
(26,000)
Loss on extinguishment of debt
46,000 
0 
Interest expense, net
1,446,000 
1,857,000 
Income before income tax provision
4,597,000 
5,200,000 
Income tax provision
2,000,000 
800,000 
Net income
2,628,000 
4,411,000 
(Income) loss attributable to the noncontrolling interest
(54,000)
25,000 
Net income attributable to ARC Document Solutions, Inc. shareholders
$ 2,574,000 
$ 4,436,000 
Earnings per share attributable to ARC Document Solutions, Inc. shareholders:
 
 
Basic (dollars per share)
$ 0.06 
$ 0.10 
Diluted (dollars per share)
$ 0.05 
$ 0.09 
Weighted average common shares outstanding:
 
 
Basic (shares)
46,608 
46,443 
Diluted (shares)
47,203 
47,654 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
Net income
$ 2,628 
$ 4,411 
Other comprehensive income (loss), net of tax
 
 
Foreign currency translation adjustments, net of tax
312 
(405)
Fair value adjustment of derivatives, net of tax
(95)
(111)
Other comprehensive income (loss), net of tax
217 
(516)
Comprehensive income
2,845 
3,895 
Comprehensive income (loss) attributable to noncontrolling interest
102 
(24)
Comprehensive income attributable to ARC Document Solutions, Inc. shareholders
$ 2,743 
$ 3,919 
Condensed Consolidated Statements of Equity (USD $)
In Thousands, unless otherwise specified
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings (Deficit) [Member]
Accumulated Other Comprehensive Loss [Member]
Common Stock in Treasury [Member]
Noncontrolling Interest [Member]
Beginning Balance at Dec. 31, 2014
$ 109,838 
$ 47 
$ 110,650 
$ (7,353)
$ (161)
$ (408)
$ 7,063 
Beginning Balance, shares at Dec. 31, 2014
 
46,800 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Stock-based compensation
1,351 
 
1,351 
 
 
 
 
Stock-based compensation, shares
 
115 
 
 
 
 
 
Issuance of common stock under Employee Stock Purchase Plan
27 
 
27 
 
 
 
 
Issuance of common stock under Employee Stock Purchase Plan, shares
 
3 
 
 
 
 
 
Stock options exercised
545 
 
545 
 
 
 
 
Stock options exercised, shares
 
121 
 
 
 
 
 
Comprehensive income:
 
 
 
 
 
 
 
Net income (loss)
4,411 
 
 
4,436 
 
 
(25)
Foreign currency translation adjustments, net of tax
(405)
 
 
 
(406)
 
1 
Fair value adjustment of derivatives, net of tax
(111)
 
 
 
(111)
 
 
Comprehensive income
3,895 
 
 
 
 
 
 
Ending Balance at Mar. 31, 2015
115,656 
47 
112,573 
(2,917)
(678)
(408)
7,039 
Ending Balance, shares at Mar. 31, 2015
 
47,039 
 
 
 
 
 
Beginning Balance at Dec. 31, 2015
209,134 
47 
115,089 
89,687 
(2,097)
(612)
7,020 
Beginning Balance, shares at Dec. 31, 2015
47,130 
47,130 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Stock-based compensation
772 
 
772 
 
 
 
 
Stock-based compensation, shares
 
130 
 
 
 
 
 
Issuance of common stock under Employee Stock Purchase Plan
39 
 
39 
 
 
 
 
Issuance of common stock under Employee Stock Purchase Plan, shares
 
10 
 
 
 
 
 
Stock options exercised
11 
 
11 
 
 
 
 
Tax deficiency from stock-based compensation
(69)
 
(69)
 
 
 
 
Stock options exercised, shares
 
5 
 
 
 
 
 
Treasury shares
(2,733)
 
 
 
 
(2,733)
 
Treasury Stock, Shares
(801)
0 
 
 
 
 
 
Comprehensive income:
 
 
 
 
 
 
 
Net income (loss)
2,628 
 
 
2,574 
 
 
54 
Foreign currency translation adjustments, net of tax
312 
 
 
 
264 
 
48 
Fair value adjustment of derivatives, net of tax
(95)
 
 
 
(95)
 
 
Comprehensive income
2,845 
 
 
 
 
 
 
Ending Balance at Mar. 31, 2016
$ 209,999 
$ 47 
$ 115,842 
$ 92,261 
$ (1,928)
$ (3,345)
$ 7,122 
Ending Balance, shares at Mar. 31, 2016
47,275 
47,275 
 
 
 
 
 
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Cash flows from operating activities
 
 
Net income
$ 2,628 
$ 4,411 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Allowance for accounts receivable
71 
26 
Depreciation
6,677 
7,066 
Amortization of intangible assets
1,313 
1,489 
Amortization of deferred financing costs
118 
161 
Stock-based compensation
772 
1,083 
Deferred income taxes
1,749 
2,176 
Deferred tax valuation allowance
72 
(1,534)
Loss on extinguishment of debt
46 
0 
Other non-cash items, net
(334)
(174)
Changes in operating assets and liabilities:
 
 
Accounts receivable
(1,264)
(4,522)
Inventory
(1,568)
(1,093)
Prepaid expenses and other assets
397 
1,999 
Accounts payable and accrued expenses
(5,374)
(5,800)
Net cash provided by operating activities
5,303 
5,288 
Cash flows from investing activities
 
 
Capital expenditures
(2,505)
(3,501)
Other
226 
155 
Net cash used in investing activities
(2,279)
(3,346)
Cash flows from financing activities
 
 
Proceeds from stock option exercises
11 
545 
Proceeds from issuance of common stock under Employee Stock Purchase Plan
39 
27 
Share repurchases
(2,733)
0 
Contingent consideration on prior acquisitions
(65)
0 
Early extinguishment of long-term debt
(4,400)
0 
Payments on long-term debt agreements and capital leases
(3,121)
(6,067)
Net repayments under revolving credit facilities
0 
(984)
Payment of deferred financing costs
(30)
(24)
Payment of hedge premium
0 
(632)
Net cash used in financing activities
(10,299)
(7,135)
Effect of foreign currency translation on cash balances
105 
118 
Net change in cash and cash equivalents
(7,170)
(5,075)
Cash and cash equivalents at beginning of period
23,963 
22,636 
Cash and cash equivalents at end of period
16,793 
17,561 
Noncash investing and financing activities
 
 
Capital lease obligations incurred
2,865 
3,500 
Liabilities in connection with the acquisition of businesses
$ 104 
$ 0 
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation
ARC Document Solutions, Inc. (“ARC Document Solutions,” “ARC” or the “Company”) is a leading document solutions company serving businesses of all types, with an emphasis on the non-residential segment of the architecture, engineering and construction (“AEC”) industry. ARC offers a variety of services including: Construction Document Information Management ("CDIM"), Managed Print Services ("MPS"), and Archive and Information Management ("AIM"). In addition, ARC also sells Equipment and Supplies. The Company conducts its operations through its wholly-owned operating subsidiary, ARC Document Solutions, LLC, a Texas limited liability company, and its affiliates.
Basis of Presentation
The accompanying interim Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conformity with the requirements of the SEC. As permitted under those rules, certain footnotes or other financial information required by GAAP for complete financial statements have been condensed or omitted. In management’s opinion, the accompanying interim Condensed Consolidated Financial Statements presented reflect all adjustments of a normal and recurring nature that are necessary to fairly present the interim Condensed Consolidated Financial Statements. All material intercompany accounts and transactions have been eliminated in consolidation. The operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the interim Condensed Consolidated Financial Statements and accompanying notes. The Company evaluates its estimates and assumptions on an ongoing basis and relies on historical experience and various other factors that it believes to be reasonable under the circumstances to determine such estimates. Actual results could differ from those estimates, and such differences may be material to the interim Condensed Consolidated Financial Statements.
These interim Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s 2015 Form 10-K.
Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the statement of operations when share-based awards vest or are settled. In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. The standard also allows the Company to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on the Company's statement of cash flows, and provides an accounting policy election to account for forfeitures as they occur. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2016-09 on its condensed consolidated financial statements.

In February 2016, the FASB issued Accounting Standards Codification (“ASC”) 842, Leases. The new guidance replaces the existing guidance in ASC 840, Leases. ASC 842 requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use (ROU) asset and a corresponding lease liability. For finance leases the lessee would recognize interest expense and amortization of the ROU asset and for operating leases the lessee would recognize a straight-line total lease expense. ASC 842 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently in the process of evaluating the impact of the adoption of ASC 842 on its consolidated financial statements.
In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. The new guidance requires that inventory be measured at the lower of cost or net realizable value and amends existing guidance which requires inventory be measured at the lower of cost or market. Replacing the concept of market with the single measurement of net realizable value is intended to create efficiencies for financial statement preparers. ASU 2015-11 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2015-11 on its condensed consolidated financial statements.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the existing revenue recognition requirements in “Revenue Recognition (Topic 605).” The new guidance requires entities to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on its condensed consolidated financial statements.
In April 2015, the FASB issued ASU 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The new guidance amends Accounting Standards Codification ("ASC") 350-40, Intangibles - Goodwill and Other, Internal-Use Software, to provide guidance on determining whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software. ASU 2015-05 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The Company adopted ASU 2015-05 on January 1, 2016. The adoption of ASU 2015-05 did not have a material impact to the Company's condensed consolidated financial statements.
In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of deferred financing fees in an entity's financial statements. Under the ASU, deferred financing fees are to be presented in the balance sheet as a direct deduction from the related debt liability rather than as an asset. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The Company adopted ASU 2015-03 for its quarterly report on Form 10-Q for the three months ended March 31, 2016. In conjunction with the adoption of ASU 2015-03, the Company reclassified net deferred financing fees of $1,586 at December 31, 2015 from an asset to a direct deduction from the related debt liability to conform to the current period presentation.
Segment Reporting
The provisions of ASC 280, Disclosures about Segments of an Enterprise and Related Information, require public companies to report financial and descriptive information about their reportable operating segments. The Company identifies operating segments based on the various business activities that earn revenue and incur expense and whose operating results are reviewed by the Company's Chief Executive Officer, who is the Company's chief operating decision maker. Because its operating segments have similar products and services, classes of customers, production processes, distribution methods and economic characteristics, the Company operates as a single reportable segment.
Net sales of the Company’s principal services and products were as follows:
 
 
Three Months Ended 
 March 31,
 
 
2016
 
2015
 
Service Sales
 
 
 
 
CDIM
$
53,665

 
$
54,643

 
MPS
33,231

 
35,877

 
AIM
3,739

 
2,805

 
Total service sales
90,635

 
93,325

 
Equipment and supplies sales
12,915

 
10,994

 
Total net sales
$
103,550

 
$
104,319

 

Risk and Uncertainties
The Company generates the majority of its revenue from sales of services and products to customers in the AEC industry. As a result, the Company’s operating results and financial condition can be significantly affected by economic factors that influence the AEC industry, such as non-residential construction spending, GDP growth, interest rates, unemployment rates, and office vacancy rates. Reduced activity (relative to historic levels) in the AEC industry would diminish demand for some of ARC’s services and products, and would therefore negatively affect revenues and have a material adverse effect on its business, operating results and financial condition.
As part of the Company’s growth strategy, ARC intends to continue to offer and grow a variety of service offerings that are relatively new to the Company. The success of the Company’s efforts will be affected by its ability to acquire new customers for the Company’s new service offerings, as well as to sell the new service offerings to existing customers. The Company’s inability to successfully market and execute these relatively new service offerings could significantly affect its business and reduce its long term revenue, resulting in an adverse effect on its results of operations and financial condition.
Earnings Per Share
Earnings Per Share
Earnings per Share
The Company accounts for earnings per share in accordance with ASC 260, Earnings Per Share. Basic earnings per share is computed by dividing net income attributable to ARC by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is computed similarly to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if common shares subject to outstanding options and acquisition rights had been issued and if the additional common shares were dilutive. Common share equivalents are excluded from the computation if their effect is anti-dilutive. For the three months ended March 31, 2016, stock options for 2.8 million common shares, were excluded from the calculation of diluted net income attributable to ARC per common share because they were anti-dilutive. For the three months ended March 31, 2015, stock options of 0.2 million common shares, were excluded from the calculation of diluted net income attributable to ARC per common share because they were anti-dilutive. The Company's common share equivalents consist of stock options issued under the Company's stock plan.
Basic and diluted weighted average common shares outstanding were calculated as follows for the three months ended March 31, 2016 and 2015:
 
 
Three Months Ended 
 March 31,
 
 
2016
 
2015
 
Weighted average common shares outstanding during the period—basic
46,608

 
46,443

 
Effect of dilutive stock options
595

 
1,211

 
Weighted average common shares outstanding during the period—diluted
47,203

 
47,654

 


Stock Repurchase Program
On February 8, 2016, the Company announced that the Company's Board of Directors had approved a stock repurchase program that authorizes the Company to purchase up to $15.0 million of the Company's outstanding common stock through December 31, 2017. Under the repurchase program, purchases of shares of common stock may be made from time to time in the open market, or in privately negotiated transactions, in compliance with applicable state and federal securities laws. The stock repurchase program does not obligate the company to acquire any specific number of shares in any period, and may be expanded, extended, modified or discontinued at any time without prior notice. See Part II, Item 2., “Unregistered Sales of Equity Securities and Use of Proceeds” of this report for additional information on the stock repurchase program.
Goodwill and Other Intangibles Resulting from Business Acquisitions
Goodwill and Other Intangibles Resulting from Business Acquisitions
Goodwill and Other Intangibles Resulting from Business Acquisitions
Goodwill
In connection with acquisitions, the Company applies the provisions of ASC 805, Business Combinations, using the acquisition method of accounting. The excess purchase price over the assessed fair value of net tangible assets and identifiable intangible assets acquired is recorded as goodwill.
In accordance with ASC 350, Intangibles-Goodwill and Other, the Company assesses goodwill for impairment annually as of September 30, and more frequently if events and circumstances indicate that goodwill might be impaired. At September 30, 2015, the Company performed its assessment and determined that goodwill was not impaired.
Goodwill impairment testing is performed at the reporting unit level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or internally generated, are available to support the value of the goodwill.
Goodwill impairment testing is a two-step process. Step one involves comparing the fair value of the reporting units to its carrying amount. If the carrying amount of a reporting unit is greater than zero and its fair value is greater than its carrying amount, there is no impairment. If the reporting unit’s carrying amount is greater than the fair value, the second step must be completed to measure the amount of impairment, if any. Step two involves calculating the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting unit as determined in step one. The implied fair value of goodwill determined in this step is compared to the carrying value of goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, an impairment loss is recognized equal to the difference.
The Company determines the fair value of its reporting units using an income approach. Under the income approach, the Company determined fair value based on estimated discounted future cash flows of each reporting unit. The cash flows are discounted by an estimated weighted-average cost of capital, which is intended to reflect the overall level of inherent risk of a reporting unit. Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant estimates and assumptions, including revenue growth rates and EBITDA margins, discount rates and future market conditions, among others. The Company considered market information in assessing the reasonableness of the fair value under the income approach outlined above.
Given the current economic environment, the changing document and printing needs of the Company’s customers, and the uncertainties regarding the related impact on the Company’s business, there can be no assurance that the estimates and assumptions made for purposes of the Company’s goodwill impairment testing in 2015 will prove to be accurate predictions of the future. If the Company’s assumptions, including forecasted EBITDA of certain reporting units, are not achieved, the Company may be required to record additional goodwill impairment charges in future periods, whether in connection with the Company’s next annual impairment testing in the third quarter of 2016, or on an interim basis, if any such change constitutes a triggering event (as defined under ASC 350, Intangibles-Goodwill and Other) outside of the quarter when the Company regularly performs its annual goodwill impairment test. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material.
There was no change to the carrying amount of goodwill from January 1, 2015 through March 31, 2016.
Long-lived Assets
The Company periodically assesses potential impairments of its long-lived assets in accordance with the provisions of ASC 360, Accounting for the Impairment or Disposal of Long-lived Assets . An impairment review is performed whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. The Company groups its assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of the other assets and liabilities. The Company has determined that the lowest level for which identifiable cash flows are available is the regional level, which is the operating segment level.
Factors considered by the Company include, but are not limited to, significant underperformance relative to historical or projected operating results; significant changes in the manner of use of the acquired assets or the strategy for the overall business; and significant negative industry or economic trends. When the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company estimates the future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected future undiscounted cash flows and eventual disposition is less than the carrying amount of the asset, the Company recognizes an impairment loss. An impairment loss is reflected as the amount by which the carrying amount of the asset exceeds the fair value of the asset, based on the fair value if available, or discounted cash flows, if fair value is not available. The Company had no long-lived asset impairments in the first three months of 2016 or for the year ended December 31, 2015.
Other intangible assets that have finite lives are amortized over their useful lives. Customer relationships are amortized using the accelerated method, based on customer attrition rates, over their estimated useful lives of 13 (weighted average) years.
The following table sets forth the Company’s other intangible assets resulting from business acquisitions as of March 31, 2016 and December 31, 2015 which continue to be amortized:
 
 
March 31, 2016
 
December 31, 2015
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Amortizable other intangible assets
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
$
99,387

 
$
82,978

 
$
16,409

 
$
99,050

 
$
81,572

 
$
17,478

Trade names and trademarks
20,336

 
19,873

 
463

 
20,329

 
19,861

 
468

 
$
119,723

 
$
102,851

 
$
16,872

 
$
119,379

 
$
101,433

 
$
17,946


Based on current information, estimated future amortization expense of amortizable intangible assets for the remainder of the 2016 fiscal year, each of the subsequent four fiscal years and thereafter are as follows:
 
2016 (excluding the three months ended March 31, 2016)
$
3,539

2017
4,286

2018
3,871

2019
3,147

2020
1,536

Thereafter
493

 
$
16,872

Income Taxes
Income Taxes
Income Taxes
On a quarterly basis, the Company estimates its effective tax rate for the full fiscal year and records a quarterly income tax provision based on the anticipated rate in conjunction with the recognition of any discrete items within the quarter.
The Company recorded an income tax provision of $2.0 million in relation to pretax income of $4.6 million for the three months ended March 31, 2016, which resulted in an effective income tax rate of 42.8%. The Company recorded an income tax provision of $0.8 million in relation to pretax income of $5.2 million for the three months ended March 31, 2015 which resulted in an effective income tax rate of 14.7%, and was impacted by the amortization of tax goodwill in a deferred tax liability position given the Company had a valuation allowance against certain of its deferred tax assets.

In accordance with ASC 740-10, Income Taxes, the Company evaluates the need for deferred tax asset valuation allowances based on a more likely than not standard. The ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. The Company considers the following possible sources of taxable income when assessing the realization of deferred tax assets:

•
Future reversals of existing taxable temporary differences;
•
Future taxable income exclusive of reversing temporary differences and carryforwards;
•
Taxable income in prior carryback years; and
•
Tax-planning strategies.

The assessment regarding whether a valuation allowance is required or should be adjusted also considers all available positive and negative evidence factors, including but not limited to:

•
Nature, frequency, and severity of recent losses;
•
Duration of statutory carryforward periods;
•
Historical experience with tax attributes expiring unused; and
•
Near- and medium-term financial outlook.

It is difficult to conclude a valuation allowance is not required when there is significant objective and verifiable negative evidence, such as cumulative losses in recent years. The Company utilizes a rolling three years of actual and current year anticipated results as the primary measure of cumulative losses in recent years. The evaluation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company's financial statements or tax returns and future profitability. The Company's accounting for deferred tax consequences represents its best estimate of those future events. Changes in the Company's current estimates, due to unanticipated events or otherwise, could have a material effect on its financial condition and results of operations. At September 30, 2015 as a result of sustained profitability in the U.S. evidenced by three years of earnings and forecasted continuing profitability, the Company determined it was more likely than not that future earnings will be sufficient to realize certain of its deferred tax assets in the U.S. Accordingly the Company reversed most of its U.S. valuation allowance, resulting in non-cash income tax benefit of $80.7 million for the year ended December 31, 2015. The Company continues to carry a $1.4 million valuation allowance against certain deferred tax assets as of March 31, 2016.

Based on the Company’s assessment, the remaining net deferred tax assets as of March 31, 2016 are considered more likely than not to be realized. The valuation allowance of $1.4 million may be increased or reduced as conditions change or if the Company is unable to implement certain available tax planning strategies. The realization of the Company’s net deferred tax assets ultimately depend on future taxable income, reversals of existing taxable temporary differences or through a loss carry back. The Company has income tax receivables of $19 thousand as of March 31, 2016 included in other current assets in its Condensed Consolidated Balance Sheet primarily related to income tax refunds for prior years.
Long-Term Debt
Long-Term Debt
Long-Term Debt
Long-term debt consists of the following:
 
 
 
March 31, 2016
 
December 31, 2015
Term A loan facility maturing 2019 net of deferred financing fees of $1,453 and $1,586; 2.62% and 2.50% interest rate at March 31, 2016 and December 31, 2015
 
$
137,147

 
$
141,414

Various capital leases; weighted average interest rate of 5.7% and 5.8% at March 31, 2016 and December 31, 2015; principal and interest payable monthly through February 2021
 
29,786

 
29,866

Various other notes payable with a weighted average interest rate of 9.3% and 8.5% at March 31, 2016 and December 31, 2015; principal and interest payable monthly through November 2019
 
71

 
112

 
 
167,004

 
171,392

Less current portion
 
(14,651
)
 
(14,374
)
 
 
$
152,353

 
$
157,018


Term A Loan Facility
On November 20, 2014 the Company entered into a Credit Agreement (the “Term A Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent and the lenders party thereto.
The Term A Credit Agreement provides for the extension of term loans (“Term Loans”) in an aggregate principal amount of $175.0 million, the entirety of which was disbursed on the Closing Date in order to pay outstanding obligations under the Company’s Term Loan Credit Agreement dated as of December 20, 2013. The Term A Credit Agreement also provides for the extension of revolving loans (“Revolving Loans”) in an aggregate principal amount not to exceed $30.0 million. The Revolving Loan facility under the Term A Credit Agreement replaces the Company’s Credit Agreement dated as of January 27, 2012. The Company may request incremental commitments to the aggregate principal amount of Term Loans and Revolving Loans available under the Term A Credit Agreement by an amount not to exceed $75.0 million in the aggregate. Unless an incremental commitment to increase the Term Loan or provide a new term loan matures at a later date, the obligations under the Term A Credit Agreement mature on November 20, 2019. As of March 31, 2016, the Company's borrowing availability under the Term A Credit Agreement was $28.1 million, which was the maximum borrowing limit of $30.0 million reduced by outstanding letters of credit of $1.9 million.

Loans borrowed under the Term A Credit Agreement bear interest, in the case of LIBOR rate loans, at a per annum rate equal to the applicable LIBOR rate, plus a margin ranging from 1.50% to 2.50%, based on the Company’s Total Leverage Ratio (as defined in the Term A Credit Agreement). Loans borrowed under the Term A Credit Agreement that are not LIBOR rate loans bear interest at a per annum rate equal to (i) the greatest of (A) the Federal Funds Rate plus 0.50%, (B) the one month LIBOR rate plus 1.00%, and (C) the rate of interest announced, from time to time, by Wells Fargo Bank, National Association as its “prime rate,” plus (ii) a margin ranging from 0.50% to 1.50%, based on the Company’s Total Leverage Ratio.

The Company will pay certain recurring fees with respect to the credit facility, including administration fees to the administrative agent.

Subject to certain exceptions, including in certain circumstances, reinvestment rights, the loans extended under the Term A Credit Agreement are subject to customary mandatory prepayment provisions with respect to: the net proceeds from certain asset sales; the net proceeds from certain issuances or incurrences of debt (other than debt permitted to be incurred under the terms of the Term A Credit Agreement); the net proceeds from certain issuances of equity securities; and net proceeds of certain insurance recoveries and condemnation events of the Company.

The Term A Credit Agreement contains customary representations and warranties, subject to limitations and exceptions, and customary covenants restricting the ability (subject to various exceptions) of the Company and its subsidiaries to: incur additional indebtedness (including guarantee obligations); incur liens; sell certain property or assets; engage in mergers or other fundamental changes; consummate acquisitions; make investments; pay dividends, other distributions or repurchase equity interest of the Company or its subsidiaries; change the nature of their business; prepay or amend certain indebtedness; engage in certain transactions with affiliates; amend their organizational documents; or enter into certain restrictive agreements. In addition, the Term A Credit Agreement contains financial covenants which requires the Company to maintain (i) at all times, a Total Leverage Ratio in an amount not to exceed 3.25 to 1.00 through the Company’s fiscal quarter ending September 30, 2016, and thereafter, in an amount not to exceed 3.00 to 1.00; and (ii) a Fixed Charge Coverage Ratio (as defined in the Term A Credit Agreement), as of the last day of each fiscal quarter, in an amount not less than 1.25 to 1.00. On February 5, 2016, the Term A Credit Agreement was amended to exclude up to $15.0 million of stock repurchases from the calculation of the Company's Fixed Charge Coverage Ratio, provided that those stock repurchases are consummated in accordance with the other terms and conditions of the agreement.

The Term A Credit Agreement contains customary events of default, including with respect to: nonpayment of principal, interest, fees or other amounts; failure to perform or observe covenants; material inaccuracy of a representation or warranty when made; cross-default to other material indebtedness; bankruptcy, insolvency and dissolution events; inability to pay debts; monetary judgment defaults; actual or asserted invalidity or impairment of any definitive loan documentation, repudiation of guaranties or subordination terms; certain ERISA related events; or a change of control.

The obligations of the Company’s subsidiary that is the borrower under the Term A Credit Agreement are guaranteed by the Company and each other United States domestic subsidiary of the Company. The Term A Credit Agreement and any interest rate protection and other hedging arrangements provided by any lender party to the Credit Facility or any affiliate of such a lender are secured on a first priority basis by a perfected security interest in substantially all of the borrower’s, the Company’s and each guarantor’s assets (subject to certain exceptions).
As of March 31, 2016, the Company has paid $36.4 million in aggregate principal on its $175.0 million Term Loan Credit Agreement, which was $14.5 million above the required payments from inception to date, of which $4.4 million was paid in the first quarter of 2016. The $4.4 million early pay down of the term loan resulted in a loss on extinguishment of debt of $46 thousand for the three months ended March 31, 2016.
Other Notes Payable
Includes notes payable collateralized by equipment previously purchased.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Operating Leases. The Company has entered into various non-cancelable operating leases primarily related to facilities, equipment and vehicles used in the ordinary course of business.

Legal Proceedings. On October 21, 2010, a former employee, individually and on behalf of a purported class consisting of all non-exempt employees who work or worked for American Reprographics Company, L.L.C. and American Reprographics Company in the State of California at any time from October 21, 2006 through the present, filed an action against the Company in the Superior Court of California for the County of Orange. The complaint alleges, among other things, that the Company violated the California Labor Code by failing to (i) provide meal and rest periods, or compensation in lieu thereof, (ii) timely pay wages due at termination, and (iii) that those practices also violate the California Business and Professions Code. The relief sought includes damages, restitution, penalties, interest, costs, and attorneys’ fees and such other relief as the court deems proper. On March 15, 2013, the Company participated in a private mediation session with claimants’ counsel which did not result in resolution of the claim. Subsequent to the mediation session, the mediator issued a proposal that was accepted by both parties. A final approval order was issued by the court on March 15, 2016 and the effective date of settlement will be May 19, 2016.

The Company has a liability of $1.0 million as of March 31, 2016 related to the claim, which represents management's best estimate based on information available. As such, the ultimate resolution of the claim could result in a loss different than the estimated loss recorded.

In addition to the matters described above, the Company is involved in various additional legal proceedings and other legal matters from time to time in the normal course of business. The Company does not believe that the outcome of any of these matters will have a material effect on its consolidated financial position, results of operations or cash flows.
Stock-Based Compensation
Stock-Based Compensation
Stock-Based Compensation
At the Company's annual meeting of stockholders held on May 1, 2014, the Company's stockholders approved the Company's 2014 Stock Plan (the “2014 Stock Plan”) as adopted by the Company's board of directors. The 2014 Stock Plan replaces the American Reprographics Company 2005 Stock Plan (the "2005 Plan"). The 2014 Stock Plan provides for the grant of incentive and non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonuses and other forms of awards granted or denominated in the Company's common stock or units of the Company's common stock, as well as cash bonus awards to employees, directors and consultants of the Company. The 2014 Stock Plan authorizes the Company to issue up to 3.5 million shares of common stock. As of March 31, 2016, 1.6 million shares remain available for issuance under the Stock Plan.
Stock options granted under the 2014 Stock Plan generally expire no later than ten years from the date of grant. Options generally vest and become fully exercisable over a period of three to four years from date of award, except that options granted to non-employee directors may vest over a shorter time period. The exercise price of options must be equal to at least 100% of the fair market value of the Company’s common stock on the date of grant. The Company allows for cashless exercises of vested outstanding options.
During the three months ended March 31, 2016, the Company granted options to acquire a total of 520 thousand shares of the Company's common stock to certain key employees with an exercise price equal to the fair market value of the Company’s common stock on the date of grant. During the three months ended March 31, 2016, the Company granted 130 thousand shares of restricted stock to certain key employees at a price per share equal to the closing price of the Company's common stock on the date the restricted stock was granted. The granted stock options and restricted stock vest annually over three years from the grant date.
The impact of stock-based compensation before income taxes on the interim Condensed Consolidated Statements of Operations was $0.8 million and $1.1 million for the three months ended March 31, 2016 and 2015, respectively.
As of March 31, 2016, total unrecognized compensation cost related to unvested stock-based payments totaled $4.5 million and is expected to be recognized over a weighted-average period of 2.0 years.
Derivatives and Hedging Transactions
Derivatives and Hedging Transactions
Derivatives and Hedging Transactions

The Company uses derivative financial instruments to hedge its exposure to interest rate volatility related to its Term A Loan Facility. The Company does not use derivative financial instruments for speculative or trading purposes. Such derivatives are designated as cash flow hedges and accounted for under ASC 815, Derivatives and Hedging. Derivative instruments are recorded at fair value as either assets or liabilities in the interim condensed consolidated balance sheets. Changes in fair value of cash flow hedges that are designated as effective hedging instruments are deferred in equity as a component of accumulated other comprehensive loss ("AOCL"). Any ineffectiveness in such cash flow hedges is immediately recognized in earnings. Changes in the fair value of hedges that are not designated as effective hedging instruments are immediately recognized in earnings. Cash flows from the Company’s derivative instruments are classified in the condensed consolidated statements of cash flows in the same category as the items being hedged.

In January 2015, the Company entered into three one-year interest rate cap contracts to hedge against its exposure to interest rate volatility: (1) $80.0 million notional interest rate cap effective in 2015, (2) $65.0 million notional forward interest rate cap effective in 2016, and (3) $50.0 million notional forward interest rate cap effective in 2017. Over the next twelve months, the Company expects to reclassify $0.3 million from AOCL to interest expense.

The following table summarizes the fair value and classification on the Condensed Consolidated Balance Sheets of the Company's derivatives as of March 31, 2016 and December 31, 2015:
 
 
 
Fair Value
 
Balance Sheet Classification
 
March 31, 2016
 
December 31, 2015
Derivative designated as hedging instrument under ASC 815
 
 
 
 
 
Interest rate cap contracts - current portion
Other current assets
 
$
13

 
$
48

Interest rate cap contracts - long-term portion
Other assets
 
48

 
191

Total derivatives designated as hedging instruments
 
 
$
61

 
$
239




The following table summarizes the loss recognized in AOCL of derivatives, designated and qualifying as cash flow hedges for the three months ended March 31, 2016 and 2015:

 
 
Amount of Loss Recognized in AOCL on Derivative
 
 
Three Months Ended 
 March 31,
 
 
 
2016
 
2015
 
Derivative in ASC 815 Cash Flow Hedging Relationship
 
 
 
 
 
Interest rate cap contracts
 
$
(95
)
 
$
(111
)
 


The following table summarizes the effect of the interest rate cap on the Condensed Consolidated Statements of Income for the three months ended March 31, 2016 and 2015:

 
 
Amount of Gain or (Loss) Reclassified from AOCL into Income
 
 
Three Months Ended 
 March 31, 2016
 
Three Months Ended 
 March 31, 2015
 
 
 
Effective Portion
 
Ineffective Portion
 
Effective Portion
 
Ineffective Portion
 
Location of Loss Reclassified from AOCL into Income
 
 
 
 
 
 
 
 
 
Interest expense
 
$
21

 
$
—

 
$
1

 
$
—

 
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
In accordance with ASC 820, Fair Value Measurement, the Company has categorized its assets and liabilities that are measured at fair value into a three-level fair value hierarchy as set forth below. If the inputs used to measure fair value fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. The three levels of the hierarchy are defined as follows:
Level 1-inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2-inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3-inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the condensed consolidated financial statements as of and for the three months ended March 31, 2016 and as of and for the year ended December 31 2015:

 
 
 
Significant Other Unobservable Inputs
 
 
 
March 31, 2016
 
December 31, 2015
 
 
 
Level 2
 
Level 3
 
Total Losses
 
Level 2
 
Level 3
 
Total Losses
Recurring Fair Value Measure
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate cap contracts
 
$
61

 
$
—

 
$
—

 
$
239

 
$
—

 
$
—

 
Contingent purchase price consideration for acquired businesses
 
$
—

 
$
868

 
$
—

 
$
—

 
$
1,059

 
$
—



The Company determines the fair value of its interest rate cap contracts based on observable interest rate yield curves and represent the expected discounted cash flows underlying the financial instruments.
The Company recognizes liabilities for future earnout obligations on business acquisitions, or contingent purchase price consideration for acquired businesses, at their fair value based on discounted projected payments on such obligations. The inputs to the valuation, which are level 3 inputs within the fair value hierarchy, are projected sales to be provided by the acquired businesses based on historical sales trends for which earnout amounts are contractually based. Based on the Company's assessment as of March 31, 2016, the estimated contractually required earnout amounts would be achieved.
The following table presents the change in the Level 3 contingent purchase price consideration liability for the three months ended March 31, 2016 and 2015:
 
Three Months Ended 
 March 31,
 
 
2016
 
2015
 
Beginning balance
$
1,059

 
$
1,768

 
     Additions related to acquisitions
104

 
—

 
     Payments
(65
)
 
(26
)
 
     Adjustments included in earnings
(222
)
 
—

 
     Foreign currency translation adjustments
(8
)
 
(163
)
 
Ending balance
$
868

 
$
1,579

 

Fair Values of Financial Instruments. The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments for disclosure purposes:
Cash equivalents: Cash equivalents are time deposits with maturity of three months or less when purchased, which are highly liquid and readily convertible to cash. Cash equivalents reported in the Company’s Condensed Consolidated Balance Sheets were $6.8 million and $6.3 million as of March 31, 2016 and December 31, 2015, respectively, and are carried at cost and approximate fair value due to the relatively short period to maturity of these instruments.
Short and long-term debt: The carrying amount of the Company’s capital leases reported in the Condensed Consolidated Balance Sheets approximates fair value based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements. The carrying amount reported in the Company’s Condensed Consolidated Balance Sheet as of March 31, 2016 for borrowings under its Term Loan Credit Agreement is $138.6 million , excluding unamortized deferred financing fees. The Company has determined, utilizing observable market quotes, that the fair value of borrowings under its Term Loan Credit Agreement is $138.6 million as of March 31, 2016.
Description of Business and Basis of Presentation (Policies)
Goodwill 
Goodwill
In connection with acquisitions, the Company applies the provisions of ASC 805, Business Combinations, using the acquisition method of accounting. The excess purchase price over the assessed fair value of net tangible assets and identifiable intangible assets acquired is recorded as goodwill.
In accordance with ASC 350, Intangibles-Goodwill and Other, the Company assesses goodwill for impairment annually as of September 30, and more frequently if events and circumstances indicate that goodwill might be impaired. At September 30, 2015, the Company performed its assessment and determined that goodwill was not impaired.
Goodwill impairment testing is performed at the reporting unit level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or internally generated, are available to support the value of the goodwill.
Goodwill impairment testing is a two-step process. Step one involves comparing the fair value of the reporting units to its carrying amount. If the carrying amount of a reporting unit is greater than zero and its fair value is greater than its carrying amount, there is no impairment. If the reporting unit’s carrying amount is greater than the fair value, the second step must be completed to measure the amount of impairment, if any. Step two involves calculating the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting unit as determined in step one. The implied fair value of goodwill determined in this step is compared to the carrying value of goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, an impairment loss is recognized equal to the difference.
The Company determines the fair value of its reporting units using an income approach. Under the income approach, the Company determined fair value based on estimated discounted future cash flows of each reporting unit. The cash flows are discounted by an estimated weighted-average cost of capital, which is intended to reflect the overall level of inherent risk of a reporting unit. Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant estimates and assumptions, including revenue growth rates and EBITDA margins, discount rates and future market conditions, among others. The Company considered market information in assessing the reasonableness of the fair value under the income approach outlined above.
Given the current economic environment, the changing document and printing needs of the Company’s customers, and the uncertainties regarding the related impact on the Company’s business, there can be no assurance that the estimates and assumptions made for purposes of the Company’s goodwill impairment testing in 2015 will prove to be accurate predictions of the future. If the Company’s assumptions, including forecasted EBITDA of certain reporting units, are not achieved, the Company may be required to record additional goodwill impairment charges in future periods, whether in connection with the Company’s next annual impairment testing in the third quarter of 2016, or on an interim basis, if any such change constitutes a triggering event (as defined under ASC 350, Intangibles-Goodwill and Other) outside of the quarter when the Company regularly performs its annual goodwill impairment test. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material.
Business Combinations 
Goodwill
In connection with acquisitions, the Company applies the provisions of ASC 805, Business Combinations, using the acquisition method of accounting. The excess purchase price over the assessed fair value of net tangible assets and identifiable intangible assets acquired is recorded as goodwill.
In accordance with ASC 350, Intangibles-Goodwill and Other, the Company assesses goodwill for impairment annually as of September 30, and more frequently if events and circumstances indicate that goodwill might be impaired. At September 30, 2015, the Company performed its assessment and determined that goodwill was not impaired.
Goodwill impairment testing is performed at the reporting unit level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or internally generated, are available to support the value of the goodwill.
Goodwill impairment testing is a two-step process. Step one involves comparing the fair value of the reporting units to its carrying amount. If the carrying amount of a reporting unit is greater than zero and its fair value is greater than its carrying amount, there is no impairment. If the reporting unit’s carrying amount is greater than the fair value, the second step must be completed to measure the amount of impairment, if any. Step two involves calculating the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting unit as determined in step one. The implied fair value of goodwill determined in this step is compared to the carrying value of goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, an impairment loss is recognized equal to the difference.
The Company determines the fair value of its reporting units using an income approach. Under the income approach, the Company determined fair value based on estimated discounted future cash flows of each reporting unit. The cash flows are discounted by an estimated weighted-average cost of capital, which is intended to reflect the overall level of inherent risk of a reporting unit. Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant estimates and assumptions, including revenue growth rates and EBITDA margins, discount rates and future market conditions, among others. The Company considered market information in assessing the reasonableness of the fair value under the income approach outlined above.
Given the current economic environment, the changing document and printing needs of the Company’s customers, and the uncertainties regarding the related impact on the Company’s business, there can be no assurance that the estimates and assumptions made for purposes of the Company’s goodwill impairment testing in 2015 will prove to be accurate predictions of the future. If the Company’s assumptions, including forecasted EBITDA of certain reporting units, are not achieved, the Company may be required to record additional goodwill impairment charges in future periods, whether in connection with the Company’s next annual impairment testing in the third quarter of 2016, or on an interim basis, if any such change constitutes a triggering event (as defined under ASC 350, Intangibles-Goodwill and Other) outside of the quarter when the Company regularly performs its annual goodwill impairment test. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material.
Earnings Per Share 
Earnings per Share
The Company accounts for earnings per share in accordance with ASC 260, Earnings Per Share. Basic earnings per share is computed by dividing net income attributable to ARC by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is computed similarly to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if common shares subject to outstanding options and acquisition rights had been issued and if the additional common shares were dilutive. Common share equivalents are excluded from the computation if their effect is anti-dilutive. For the three months ended March 31, 2016, stock options for 2.8 million common shares, were excluded from the calculation of diluted net income attributable to ARC per common share because they were anti-dilutive. For the three months ended March 31, 2015, stock options of 0.2 million common shares, were excluded from the calculation of diluted net income attributable to ARC per common share because they were anti-dilutive.
Basis of Presentation 
Basis of Presentation
The accompanying interim Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conformity with the requirements of the SEC. As permitted under those rules, certain footnotes or other financial information required by GAAP for complete financial statements have been condensed or omitted. In management’s opinion, the accompanying interim Condensed Consolidated Financial Statements presented reflect all adjustments of a normal and recurring nature that are necessary to fairly present the interim Condensed Consolidated Financial Statements. All material intercompany accounts and transactions have been eliminated in consolidation. The operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the interim Condensed Consolidated Financial Statements and accompanying notes. The Company evaluates its estimates and assumptions on an ongoing basis and relies on historical experience and various other factors that it believes to be reasonable under the circumstances to determine such estimates. Actual results could differ from those estimates, and such differences may be material to the interim Condensed Consolidated Financial Statements.
These interim Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s 2015 Form 10-K.
Recent Accounting Pronouncements 
Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the statement of operations when share-based awards vest or are settled. In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. The standard also allows the Company to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on the Company's statement of cash flows, and provides an accounting policy election to account for forfeitures as they occur. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2016-09 on its condensed consolidated financial statements.

In February 2016, the FASB issued Accounting Standards Codification (“ASC”) 842, Leases. The new guidance replaces the existing guidance in ASC 840, Leases. ASC 842 requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use (ROU) asset and a corresponding lease liability. For finance leases the lessee would recognize interest expense and amortization of the ROU asset and for operating leases the lessee would recognize a straight-line total lease expense. ASC 842 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently in the process of evaluating the impact of the adoption of ASC 842 on its consolidated financial statements.
In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. The new guidance requires that inventory be measured at the lower of cost or net realizable value and amends existing guidance which requires inventory be measured at the lower of cost or market. Replacing the concept of market with the single measurement of net realizable value is intended to create efficiencies for financial statement preparers. ASU 2015-11 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2015-11 on its condensed consolidated financial statements.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the existing revenue recognition requirements in “Revenue Recognition (Topic 605).” The new guidance requires entities to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on its condensed consolidated financial statements.
In April 2015, the FASB issued ASU 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The new guidance amends Accounting Standards Codification ("ASC") 350-40, Intangibles - Goodwill and Other, Internal-Use Software, to provide guidance on determining whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software. ASU 2015-05 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The Company adopted ASU 2015-05 on January 1, 2016. The adoption of ASU 2015-05 did not have a material impact to the Company's condensed consolidated financial statements.
In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of deferred financing fees in an entity's financial statements. Under the ASU, deferred financing fees are to be presented in the balance sheet as a direct deduction from the related debt liability rather than as an asset. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The Company adopted ASU 2015-03 for its quarterly report on Form 10-Q for the three months ended March 31, 2016. In conjunction with the adoption of ASU 2015-03, the Company reclassified net deferred financing fees of $1,586 at December 31, 2015 from an asset to a direct deduction from the related debt liability to conform to the current period presentation.
Segment Reporting 
Segment Reporting
The provisions of ASC 280, Disclosures about Segments of an Enterprise and Related Information, require public companies to report financial and descriptive information about their reportable operating segments. The Company identifies operating segments based on the various business activities that earn revenue and incur expense and whose operating results are reviewed by the Company's Chief Executive Officer, who is the Company's chief operating decision maker. Because its operating segments have similar products and services, classes of customers, production processes, distribution methods and economic characteristics, the Company operates as a single reportable segment.
Risk and Uncertainties 
Risk and Uncertainties
The Company generates the majority of its revenue from sales of services and products to customers in the AEC industry. As a result, the Company’s operating results and financial condition can be significantly affected by economic factors that influence the AEC industry, such as non-residential construction spending, GDP growth, interest rates, unemployment rates, and office vacancy rates. Reduced activity (relative to historic levels) in the AEC industry would diminish demand for some of ARC’s services and products, and would therefore negatively affect revenues and have a material adverse effect on its business, operating results and financial condition.
As part of the Company’s growth strategy, ARC intends to continue to offer and grow a variety of service offerings that are relatively new to the Company. The success of the Company’s efforts will be affected by its ability to acquire new customers for the Company’s new service offerings, as well as to sell the new service offerings to existing customers. The Company’s inability to successfully market and execute these relatively new service offerings could significantly affect its business and reduce its long term revenue, resulting in an adverse effect on its results of operations and financial condition.
Long-Lived Assets 
Long-lived Assets
The Company periodically assesses potential impairments of its long-lived assets in accordance with the provisions of ASC 360, Accounting for the Impairment or Disposal of Long-lived Assets . An impairment review is performed whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. The Company groups its assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of the other assets and liabilities. The Company has determined that the lowest level for which identifiable cash flows are available is the regional level, which is the operating segment level.
Factors considered by the Company include, but are not limited to, significant underperformance relative to historical or projected operating results; significant changes in the manner of use of the acquired assets or the strategy for the overall business; and significant negative industry or economic trends. When the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company estimates the future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected future undiscounted cash flows and eventual disposition is less than the carrying amount of the asset, the Company recognizes an impairment loss. An impairment loss is reflected as the amount by which the carrying amount of the asset exceeds the fair value of the asset, based on the fair value if available, or discounted cash flows, if fair value is not available. The Company had no long-lived asset impairments in the first three months of 2016 or for the year ended December 31, 2015.
Other intangible assets that have finite lives are amortized over their useful lives. Customer relationships are amortized using the accelerated method, based on customer attrition rates, over their estimated useful lives of 13 (weighted average) years.
The following table sets forth the Company’s other intangible assets resulting from business acquisitions as of March 31, 2016 and December 31, 2015 which continue to be amortized:
Description of Business and Basis of Presentation (Tables)
Net Sales of Principal Services and Products
Net sales of the Company’s principal services and products were as follows:
 
 
Three Months Ended 
 March 31,
 
 
2016
 
2015
 
Service Sales
 
 
 
 
CDIM
$
53,665

 
$
54,643

 
MPS
33,231

 
35,877

 
AIM
3,739

 
2,805

 
Total service sales
90,635

 
93,325

 
Equipment and supplies sales
12,915

 
10,994

 
Total net sales
$
103,550

 
$
104,319

 

Earnings Per Share (Tables)
Basic and Diluted Earnings Per Share
Basic and diluted weighted average common shares outstanding were calculated as follows for the three months ended March 31, 2016 and 2015:
 
 
Three Months Ended 
 March 31,
 
 
2016
 
2015
 
Weighted average common shares outstanding during the period—basic
46,608

 
46,443

 
Effect of dilutive stock options
595

 
1,211

 
Weighted average common shares outstanding during the period—diluted
47,203

 
47,654

 
Goodwill and Other Intangibles Resulting from Business Acquisitions (Tables)
Other Intangible Assets Resulting from Business Acquisitions 
The following table sets forth the Company’s other intangible assets resulting from business acquisitions as of March 31, 2016 and December 31, 2015 which continue to be amortized:
 
 
March 31, 2016
 
December 31, 2015
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Amortizable other intangible assets
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
$
99,387

 
$
82,978

 
$
16,409

 
$
99,050

 
$
81,572

 
$
17,478

Trade names and trademarks
20,336

 
19,873

 
463

 
20,329

 
19,861

 
468

 
$
119,723

 
$
102,851

 
$
16,872

 
$
119,379

 
$
101,433

 
$
17,946

Estimated Future Amortization Expense of Amortizable Intangible Assets 
Based on current information, estimated future amortization expense of amortizable intangible assets for the remainder of the 2016 fiscal year, each of the subsequent four fiscal years and thereafter are as follows:
 
2016 (excluding the three months ended March 31, 2016)
$
3,539

2017
4,286

2018
3,871

2019
3,147

2020
1,536

Thereafter
493

 
$
16,872

Long-Term Debt (Tables)
Long-Term Debt
Long-term debt consists of the following:
 
 
 
March 31, 2016
 
December 31, 2015
Term A loan facility maturing 2019 net of deferred financing fees of $1,453 and $1,586; 2.62% and 2.50% interest rate at March 31, 2016 and December 31, 2015
 
$
137,147

 
$
141,414

Various capital leases; weighted average interest rate of 5.7% and 5.8% at March 31, 2016 and December 31, 2015; principal and interest payable monthly through February 2021
 
29,786

 
29,866

Various other notes payable with a weighted average interest rate of 9.3% and 8.5% at March 31, 2016 and December 31, 2015; principal and interest payable monthly through November 2019
 
71

 
112

 
 
167,004

 
171,392

Less current portion
 
(14,651
)
 
(14,374
)
 
 
$
152,353

 
$
157,018

Derivatives and Hedging Transactions (Tables)
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) 
The following table summarizes the fair value and classification on the Condensed Consolidated Balance Sheets of the Company's derivatives as of March 31, 2016 and December 31, 2015:
 
 
 
Fair Value
 
Balance Sheet Classification
 
March 31, 2016
 
December 31, 2015
Derivative designated as hedging instrument under ASC 815
 
 
 
 
 
Interest rate cap contracts - current portion
Other current assets
 
$
13

 
$
48

Interest rate cap contracts - long-term portion
Other assets
 
48

 
191

Total derivatives designated as hedging instruments
 
 
$
61

 
$
239

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) 
The following table summarizes the loss recognized in AOCL of derivatives, designated and qualifying as cash flow hedges for the three months ended March 31, 2016 and 2015:

 
 
Amount of Loss Recognized in AOCL on Derivative
 
 
Three Months Ended 
 March 31,
 
 
 
2016
 
2015
 
Derivative in ASC 815 Cash Flow Hedging Relationship
 
 
 
 
 
Interest rate cap contracts
 
$
(95
)
 
$
(111
)
 
Derivative Instruments, Gain (Loss) 
The following table summarizes the effect of the interest rate cap on the Condensed Consolidated Statements of Income for the three months ended March 31, 2016 and 2015:

 
 
Amount of Gain or (Loss) Reclassified from AOCL into Income
 
 
Three Months Ended 
 March 31, 2016
 
Three Months Ended 
 March 31, 2015
 
 
 
Effective Portion
 
Ineffective Portion
 
Effective Portion
 
Ineffective Portion
 
Location of Loss Reclassified from AOCL into Income
 
 
 
 
 
 
 
 
 
Interest expense
 
$
21

 
$
—

 
$
1

 
$
—

 
Fair Value Measurements Tables (Tables)
Fair Value, Assets Measured on Recurring Basis 
The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the condensed consolidated financial statements as of and for the three months ended March 31, 2016 and as of and for the year ended December 31 2015:

 
 
 
Significant Other Unobservable Inputs
 
 
 
March 31, 2016
 
December 31, 2015
 
 
 
Level 2
 
Level 3
 
Total Losses
 
Level 2
 
Level 3
 
Total Losses
Recurring Fair Value Measure
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate cap contracts
 
$
61

 
$
—

 
$
—

 
$
239

 
$
—

 
$
—

 
Contingent purchase price consideration for acquired businesses
 
$
—

 
$
868

 
$
—

 
$
—

 
$
1,059

 
$
—

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation 
The following table presents the change in the Level 3 contingent purchase price consideration liability for the three months ended March 31, 2016 and 2015:
 
Three Months Ended 
 March 31,
 
 
2016
 
2015
 
Beginning balance
$
1,059

 
$
1,768

 
     Additions related to acquisitions
104

 
—

 
     Payments
(65
)
 
(26
)
 
     Adjustments included in earnings
(222
)
 
—

 
     Foreign currency translation adjustments
(8
)
 
(163
)
 
Ending balance
$
868

 
$
1,579

 

Description of Business and Basis of Presentation - Net Sales of Principal Services and Products (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Service Sales
 
 
Service sales
$ 90,635 
$ 93,325 
Equipment and supplies sales
12,915 
10,994 
Total net sales
103,550 
104,319 
CDIM [Member]
 
 
Service Sales
 
 
Service sales
53,665 
54,643 
MPS [Member]
 
 
Service Sales
 
 
Service sales
33,231 
35,877 
AIM [Member]
 
 
Service Sales
 
 
Service sales
$ 3,739 
$ 2,805 
Earnings Per Share - Additional Information (Detail) (USD $)
Share data in Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Feb. 8, 2016
Class of Stock [Line Items]
 
 
 
Common stock options excluded for anti-dilutive (in shares)
2.8 
0.2 
 
Stock repurchase program, authorized amount
 
 
$ 15,000,000 
Common Stock [Member]
 
 
 
Class of Stock [Line Items]
 
 
 
Stock repurchase program, authorized amount
 
 
$ 15,000,000 
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Earnings Per Share [Abstract]
 
 
Weighted average common shares outstanding during the period—basic
46,608 
46,443 
Effect of dilutive stock options
595 
1,211 
Weighted average common shares outstanding during the period—diluted
47,203 
47,654 
Goodwill and Other Intangibles Resulting from Business Acquisitions - Additional Information (Detail) (USD $)
3 Months Ended
Sep. 30, 2015
Mar. 31, 2016
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
 
 
Goodwill, impairment
$ 0 
 
Estimated period for amortization
 
13 years 
Goodwill and Other Intangibles Resulting from Business Acquisitions - Other Intangible Assets Resulting from Business Acquisitions (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
$ 119,723 
$ 119,379 
Accumulated Amortization
102,851 
101,433 
Net Carrying Amount
16,872 
17,946 
Customer Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
99,387 
99,050 
Accumulated Amortization
82,978 
81,572 
Net Carrying Amount
16,409 
17,478 
Trade Names and Trademarks [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
20,336 
20,329 
Accumulated Amortization
19,873 
19,861 
Net Carrying Amount
$ 463 
$ 468 
Goodwill and Other Intangibles Resulting from Business Acquisitions - Estimated Future Amortization Expense of Amortizable Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
2016 (excluding the three months ended March 31, 2016)
$ 3,539 
 
2017
4,286 
 
2018
3,871 
 
2019
3,147 
 
2020
1,536 
 
Thereafter
493 
 
Net Carrying Amount
$ 16,872 
$ 17,946 
Income Taxes - Additional Information (Detail) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
Income tax (benefit) provision
$ 2,000,000 
$ 800,000 
 
Pretax gain amount
4,597,000 
5,200,000 
 
Effective income tax rate reconciliation, percent
42.80% 
14.70% 
 
Deferred tax valuation allowance
72,000 
(1,534,000)
80,700,000 
Valuation allowance
1,400,000 
 
 
Income tax receivables
$ 19,000 
 
 
Long-Term Debt - Long-Term Debt (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Long-term Debt and Capital Lease Obligations, Including Current Maturities
$ 167,004 
$ 171,392 
Current portion of long-term debt and capital leases
(14,651)
(14,374)
Long-term debt and capital leases
152,353 
157,018 
Capital Lease Obligations [Member]
 
 
Debt Instrument [Line Items]
 
 
Capital Lease Obligations
29,786 
29,866 
Weighted average interest rate
5.70% 
5.80% 
Notes Payable, Other Payables [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
71 
112 
Weighted average interest rate
9.30% 
8.50% 
Term A Loan Facility [Member] |
Line of Credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
137,147 
141,414 
Interest rate, effective percentage
2.62% 
2.50% 
Deferred Financing Fees
$ 1,453 
$ 1,586 
Long-Term Debt Narrative (Details) (USD $)
3 Months Ended 3 Months Ended 16 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Feb. 8, 2016
Mar. 31, 2016
Line of Credit [Member]
Term A Loan Facility [Member]
Mar. 31, 2016
Line of Credit [Member]
Term A Loan Facility [Member]
Nov. 20, 2014
Line of Credit [Member]
Term A Loan Facility [Member]
Mar. 31, 2016
Revolving Credit Facility [Member]
Line of Credit [Member]
Term A Loan Facility [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Line of Credit [Member]
Term A Loan Facility [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Line of Credit [Member]
Term A Loan Facility Agreement [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Line of Credit [Member]
Term A Loan Facility Agreement [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Line of Credit [Member]
Term A Loan Facility Agreement [Member]
London Interbank Offered Rate (LIBOR) [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Line of Credit [Member]
Term A Loan Facility Agreement [Member]
Federal Funds Effective Swap Rate [Member]
Mar. 31, 2016
Revolving Credit Facility [Member]
Letter of Credit [Member]
Term A Loan Facility [Member]
Nov. 20, 2014
Minimum [Member]
Revolving Credit Facility [Member]
Line of Credit [Member]
Term A Loan Facility Agreement [Member]
London Interbank Offered Rate (LIBOR) [Member]
Nov. 20, 2014
Minimum [Member]
Revolving Credit Facility [Member]
Line of Credit [Member]
Term A Loan Facility Agreement [Member]
Prime Rate [Member]
Nov. 20, 2014
Maximum [Member]
Revolving Credit Facility [Member]
Line of Credit [Member]
Term A Loan Facility Agreement [Member]
London Interbank Offered Rate (LIBOR) [Member]
Nov. 20, 2014
Maximum [Member]
Revolving Credit Facility [Member]
Line of Credit [Member]
Term A Loan Facility Agreement [Member]
Prime Rate [Member]
Nov. 20, 2014
Fiscal Quarter, Through September 30, 2016 [Member]
Revolving Credit Facility [Member]
Line of Credit [Member]
Term A Loan Facility Agreement [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
 
 
$ 175,000,000.0 
$ 30,000,000.0 
$ 30,000,000.0 
 
 
 
 
$ 1,900,000 
 
 
 
 
 
Line of credit facility, agreement terms, amount that can be requested as incremental commitments
 
 
 
 
 
 
 
 
 
75,000,000.0 
 
 
 
 
 
 
 
 
Long-term line of credit
 
 
 
 
 
 
28,100,000 
 
 
 
 
 
 
 
 
 
 
 
Basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
1.00% 
0.50% 
 
1.50% 
0.50% 
2.50% 
1.50% 
 
Covenant term, total leverage ratio
 
 
 
 
 
 
 
 
3.00 
 
 
 
 
 
 
 
 
3.25 
Fixed charged coverage ratio
 
 
 
 
 
 
 
 
1.25 
 
 
 
 
 
 
 
 
 
Stock repurchase program, authorized amount
 
 
15,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of lines of credit
 
 
 
36,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Early extinguishment of long-term debt
4,400,000 
0 
 
4,400,000 
14,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
$ 46,000 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
 
Loss on accrued liability
$ 1.0 
Stock-Based Compensation - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Authorization to issue number of common stock
3,500,000 
 
Shares available for issuance
1,600,000 
 
Stock option expiration period
10 years 
 
Exercise price of options, percentage of fair market value of Company's common stock
100.00% 
 
Stock options granted to acquire common stock
520,000 
 
Impact of stock-based compensation before income taxes
$ 0.8 
$ 1.1 
Total unrecognized compensation cost related to unvested stock-based payments
$ 4.5 
 
Expected weighted-average period to recognize compensation cost
2 years 0 months 0 days 
 
Minimum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Vesting period
3 years 
 
Maximum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Vesting period
4 years 
 
Key Employees [Member] |
Restricted Stock [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Vesting period
3 years 
 
Share-based compensation, grants in period
130,000 
 
Derivatives and Hedging Transactions Textuals (Detail) (USD $)
3 Months Ended 13 Months Ended 3 Months Ended
Mar. 31, 2016
Jan. 31, 2015
contract
Jan. 31, 2016
Interest Rate Cap [Member]
Designated as Hedging Instrument [Member]
Jan. 31, 2015
Interest Rate Cap [Member]
Designated as Hedging Instrument [Member]
Jan. 31, 2015
Interest Rate Cap 2 [Member]
Designated as Hedging Instrument [Member]
Jan. 31, 2015
Interest Rate Cap 3 [Member]
Designated as Hedging Instrument [Member]
Mar. 31, 2016
Interest Expense [Member]
Derivative [Line Items]
 
 
 
 
 
 
 
Number of instruments held
 
3 
 
 
 
 
 
Derivative, term of contract
 
 
1 year 
 
 
 
 
Derivative, notional amount
 
 
 
$ 80,000,000.0 
$ 65,000,000.0 
$ 50,000,000.0 
 
Derivative instruments, gain (loss) reclassification from Accumulated OCI to Income, estimate of time to transfer
12 months 
 
 
 
 
 
 
Derivative instruments, gain (loss) reclassification from Accumulated OCI to Income, estimated net amount to be transferred
 
 
 
 
 
 
$ 300,000 
Derivatives and Hedging Transactions (Balance Sheet Classification) (Detail) (Interest Rate Cap [Member], USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value
$ 0 
$ 0 
Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value
61 
239 
Designated as Hedging Instrument [Member] |
Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value
13 
48 
Designated as Hedging Instrument [Member] |
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative Asset, Fair Value
$ 48 
$ 191 
Derivatives and Hedging Transactions (Cash Flow Hedging Relationship) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Loss Recognized in AOCL on Derivative
$ (95)
$ (111)
Cash Flow Hedging [Member] |
Designated as Hedging Instrument [Member] |
Interest Rate Cap [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Amount of Loss Recognized in AOCL on Derivative
$ (95)
 
Derivatives and Hedging Transactions (Location of Loss Reclassified from AOCL into Income) (Detail) (Designated as Hedging Instrument [Member], Interest Expense [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Designated as Hedging Instrument [Member] |
Interest Expense [Member]
 
 
Derivative [Line Items]
 
 
Fair value adjustment of derivatives, net of tax
$ 21 
$ 1 
Derivative instruments, gain recognized in Income, ineffective portion and amount excluded from effectiveness testing
$ 0 
$ 0 
Fair Value Measurements - (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Contingent Consideration [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Contingent purchase price consideration for acquired businesses
$ 0 
$ 0 
 
 
Contingent Consideration [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Contingent purchase price consideration for acquired businesses
0 
0 
 
 
Contingent Consideration [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Contingent purchase price consideration for acquired businesses
868 
1,059 
1,579 
1,768 
Interest Rate Cap [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Interest rate cap contracts
0 
0 
 
 
Interest Rate Cap [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Interest rate cap contracts
61 
239 
 
 
Interest Rate Cap [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Interest rate cap contracts
$ 0 
$ 0 
 
 
Fair Value Measurements - Liabilities (Detail) (Contingent Consideration [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2016
Fair Value, Inputs, Level 3 [Member]
Mar. 31, 2015
Fair Value, Inputs, Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Beginning balance
$ 0 
$ 0 
$ 1,059 
$ 1,768 
Additions related to acquisitions
 
 
104 
0 
Payments
 
 
(65)
(26)
Adjustments included in earnings
 
 
(222)
0 
Foreign currency translation adjustments
 
 
(8)
(163)
Ending balance
$ 0 
$ 0 
$ 868 
$ 1,579 
Fair Value Measurements - Textuals (Detail) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Cash and cash equivalents
$ 6.8 
$ 6.3 
Term A Loan Facility [Member] |
Line of Credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
138.6 
 
Notes payable
$ 138.6