ARC DOCUMENT SOLUTIONS, INC., 10-K filed on 3/1/2016
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2015
Feb. 24, 2016
Jun. 30, 2015
Document Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2015 
 
 
Document Fiscal Year Focus
2015 
 
 
Document Fiscal Period Focus
FY 
 
 
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
 
47,029,171 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Well-known Seasoned Issuer
No 
 
 
Entity Public Float
 
 
$ 317,943,707 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 23,963 
$ 22,636 
Accounts receivable, net of allowances for accounts receivable of $2,094 and $2,413
60,085 
62,045 
Inventories, net
16,972 
16,251 
Deferred income taxes
0 
278 
Prepaid expenses
4,555 
4,767 
Other current assets
4,131 
6,080 
Total current assets
109,706 
112,057 
Property and equipment, net of accumulated depreciation of $202,457 and $214,697
57,590 
59,520 
Goodwill
212,608 
212,608 
Other intangible assets, net
17,946 
23,841 
Deferred financing fees, net
1,586 
2,440 
Deferred income taxes
74,196 
1,110 
Other assets
2,492 
2,492 
Total assets
476,124 
414,068 
Current liabilities:
 
 
Accounts payable
23,989 
26,866 
Accrued payroll and payroll-related expenses
12,118 
13,765 
Accrued expenses
19,194 
22,793 
Current portion of long-term debt and capital leases
14,374 
27,969 
Total current liabilities
69,675 
91,393 
Long-term debt and capital leases
158,604 
175,916 
Deferred income taxes
35,933 
33,463 
Other long-term liabilities
2,778 
3,458 
Total liabilities
266,990 
304,230 
Commitments and contingencies (Note 8)
   
   
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; 47,130 and 46,800 shares issued and 47,029 and 46,723 shares outstanding
47 
47 
Additional paid-in capital
115,089 
110,650 
Retained earnings (deficit)
89,687 
(7,353)
Accumulated other comprehensive loss
(2,097)
(161)
Total stockholders equity before adjustment of treasury stock
202,726 
103,183 
Less cost of common stock in treasury, 101 and 77 shares
612 
408 
Total ARC Document Solutions, Inc. stockholders’ equity
202,114 
102,775 
Noncontrolling interest
7,020 
7,063 
Total equity
209,134 
109,838 
Total liabilities and equity
$ 476,124 
$ 414,068 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]
 
 
Allowances for accounts receivable
$ 2,094 
$ 2,413 
Accumulated depreciation on property and equipment
$ 202,457 
$ 214,697 
Preferred stock, par value (in dollars per share)
$ 0.001 
$ 0.001 
Preferred stock, shares authorized (in shares)
25,000,000 
25,000,000 
Preferred stock, shares issued (in shares)
0 
0 
Preferred stock, shares outstanding (in shares)
0 
0 
Common stock, par value (in dollars per share)
$ 0.001 
$ 0.001 
Common stock, shares authorized (in shares)
150,000,000 
150,000,000 
Common stock, shares issued (in shares)
47,130,000 
46,800,000 
Common stock, shares outstanding (in shares)
47,029,000 
46,723,000 
Treasury stock, shares (in shares)
101,000 
77,000 
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Statement [Abstract]
 
 
 
Service sales
$ 378,638 
$ 371,884 
$ 355,358 
Equipment and supplies sales
50,027 
51,872 
51,837 
Total net sales
428,665 
423,756 
407,195 
Cost of sales
280,541 
279,478 
272,858 
Gross profit
148,124 
144,278 
134,337 
Selling, general and administrative expenses
107,280 
107,672 
96,800 
Amortization of intangible assets
5,642 
5,987 
6,612 
Restructuring expense
89 
777 
2,544 
Income from operations
35,113 
29,842 
28,381 
Other income, net
(99)
(96)
(106)
Loss on extinguishment of debt
282 
5,599 
16,339 
Interest expense, net
6,974 
14,560 
23,737 
Income (loss) before income tax (benefit) provision
27,956 
9,779 
(11,589)
Income tax (benefit) provision
(69,432)
2,348 
2,986 
Net income (loss)
97,388 
7,431 
(14,575)
Income attributable to noncontrolling interest
(348)
(156)
(748)
Net income (loss) attributable to ARC Document Solutions, Inc. shareholders
$ 97,040 
$ 7,275 
$ (15,323)
Earnings (loss) per share attributable to ARC Document Solutions, Inc. shareholders:
 
 
 
Basic (dollars per share)
$ 2.08 
$ 0.16 
$ (0.33)
Diluted (dollars per share)
$ 2.04 
$ 0.15 
$ (0.33)
Weighted average common shares outstanding:
 
 
 
Basic (shares)
46,631 
46,245 
45,856 
Diluted (shares)
47,532 
47,088 
45,856 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
 
 
 
Net income (loss)
$ 97,388 
$ 7,431 
$ (14,575)
Other comprehensive (loss) income, net of tax
 
 
 
Foreign currency translation adjustments
(2,116)
(851)
190 
Fair value adjustment of derivatives, net of tax
(211)
0 
0 
Other comprehensive (loss) income, net of tax
(2,327)
(851)
190 
Comprehensive income (loss)
95,061 
6,580 
(14,385)
Comprehensive (loss) income attributable to noncontrolling interest
(43)
100 
993 
Comprehensive income (loss) attributable to ARC Document Solutions, Inc. shareholders
$ 95,104 
$ 6,480 
$ (15,378)
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 Income (Loss) [Member]
Common Stock in Treasury [Member]
Noncontrolling Interest [Member]
Beginning Balance at Dec. 31, 2012
$ 110,837 
$ 46 
$ 102,510 
$ 695 
$ 689 
$ (44)
$ 6,941 
Beginning Balance, shares (in shares) at Dec. 31, 2012
 
46,274 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Stock-based compensation, shares (in shares)
 
41 
 
 
 
 
 
Stock-based compensation
3,207 
 
3,207 
 
 
 
 
Issuance of common stock under Employee Stock Purchase Plan, shares (in shares)
6 
6 
 
 
 
 
 
Issuance of common stock under Employee Stock Purchase Plan
30 
 
30 
 
 
 
 
Stock options exercised, shares (in shares)
 
11 
 
 
 
 
 
Stock options exercised
59 
0 
59 
 
 
 
 
Dividends paid to noncontrolling interest
(485)
 
 
 
 
 
(485)
Treasury shares (in shares)
 
33 
 
 
 
 
 
Treasury shares
(124)
 
 
 
 
(124)
 
Comprehensive (loss) income
(14,385)
 
 
(15,323)
(55)
 
993 
Ending Balance at Dec. 31, 2013
99,139 
46 
105,806 
(14,628)
634 
(168)
7,449 
Ending Balance, shares (in shares) at Dec. 31, 2013
 
46,365 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Stock-based compensation, shares (in shares)
 
167 
 
 
 
 
 
Stock-based compensation
3,532 
 
3,532 
 
 
 
 
Issuance of common stock under Employee Stock Purchase Plan, shares (in shares)
13 
13 
 
 
 
 
 
Issuance of common stock under Employee Stock Purchase Plan
82 
 
82 
 
 
 
 
Stock options exercised, shares (in shares)
223 
223 
 
 
 
 
 
Stock options exercised
1,231 
1 
1,230 
 
 
 
 
Dividends paid to noncontrolling interest
(486)
 
 
 
 
 
(486)
Treasury shares (in shares)
 
32 
 
 
 
 
 
Treasury shares
(240)
 
 
 
 
(240)
 
Comprehensive (loss) income
6,580 
 
 
7,275 
(795)
 
100 
Ending Balance at Dec. 31, 2014
109,838 
47 
110,650 
(7,353)
(161)
(408)
7,063 
Ending Balance, shares (in shares) at Dec. 31, 2014
46,800 
46,800 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Stock-based compensation, shares (in shares)
 
131 
 
 
 
 
 
Stock-based compensation
3,783 
 
3,783 
 
 
 
 
Issuance of common stock under Employee Stock Purchase Plan, shares (in shares)
21 
21 
 
 
 
 
 
Issuance of common stock under Employee Stock Purchase Plan
111 
 
111 
 
 
 
 
Stock options exercised, shares (in shares)
154 
154 
 
 
 
 
 
Stock options exercised
673 
0 
673 
 
 
 
 
Tax deficiency from stock-based compensation
(128)
 
(128)
 
 
 
 
Treasury shares (in shares)
 
24 
 
 
 
 
 
Treasury shares
(204)
 
 
 
 
(204)
 
Comprehensive (loss) income
95,061 
 
 
97,040 
(1,936)
 
(43)
Ending Balance at Dec. 31, 2015
$ 209,134 
$ 47 
$ 115,089 
$ 89,687 
$ (2,097)
$ (612)
$ 7,020 
Ending Balance, shares (in shares) at Dec. 31, 2015
47,130 
47,130 
 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Cash flows from operating activities
 
 
 
Net income (loss)
$ 97,388 
$ 7,431 
$ (14,575)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Allowance for accounts receivable
340 
546 
636 
Depreciation
28,019 
28,148 
28,133 
Amortization of intangible assets
5,642 
5,987 
6,612 
Amortization of deferred financing costs
589 
758 
1,098 
Amortization of discount on long-term debt
0 
764 
671 
Stock-based compensation
3,512 
3,802 
3,207 
Deferred income taxes
10,173 
5,429 
(4,909)
Deferred tax valuation allowance
(80,669)
(3,552)
7,277 
Restructuring expense, non-cash portion
0 
0 
244 
Loss on early extinguishment of debt
282 
5,599 
16,339 
Other non-cash items, net
(390)
(462)
(323)
Changes in operating assets and liabilities, net of effect of business acquisitions:
 
 
 
Accounts receivable
729 
(6,898)
(5,133)
Inventory
(967)
(2,220)
376 
Prepaid expenses and other assets
2,296 
(1,830)
1,966 
Accounts payable and accrued expenses
(6,963)
6,510 
5,179 
Net cash provided by operating activities
59,981 
50,012 
46,798 
Cash flows from investing activities
 
 
 
Capital expenditures
(14,245)
(13,269)
(18,191)
Payments for businesses acquired, net of cash acquired
(142)
(342)
0 
Other
731 
(185)
741 
Net cash used in investing activities
(13,656)
(13,796)
(17,450)
Cash flows from financing activities
 
 
 
Proceeds from stock option exercises
673 
1,227 
59 
Proceeds from issuance of common stock under Employee Stock Purchase Plan
111 
82 
30 
Share repurchases - shares surrendered for tax withholding
(204)
(240)
(124)
Contingent consideration on prior acquisitions
(413)
0 
0 
Proceeds from borrowings on long-term debt agreements
0 
175,000 
196,402 
Payments of debt extinguishment costs
0 
0 
(11,330)
Early extinguishment of long-term debt
(14,500)
(194,500)
(200,000)
Payments on long-term debt agreements and capital leases
(27,329)
(19,217)
(12,379)
Net (repayments) borrowings under revolving credit facilities
(1,888)
98 
(237)
Payment of deferred financing costs
(25)
(2,735)
(2,220)
Payment of hedge premium
(632)
 
0 
Dividends paid to noncontrolling interest
0 
(486)
(485)
Net cash used in financing activities
(44,207)
(40,771)
(30,284)
Effect of foreign currency translation on cash balances
(791)
(171)
277 
Net change in cash and cash equivalents
1,327 
(4,726)
(659)
Cash and cash equivalents at beginning of period
22,636 
27,362 
28,021 
Cash and cash equivalents at end of period
23,963 
22,636 
27,362 
Supplemental disclosure of cash flow information:
 
 
 
Cash paid for interest
7,247 
13,303 
22,873 
Income taxes paid (received), net
721 
548 
(3,345)
Noncash financing activities:
 
 
 
Capital lease obligations incurred
13,157 
19,055 
10,399 
Liabilities in connection with the acquisition of businesses
0 
1,768 
0 
Liabilities in connection with deferred financing costs
$ 0 
$ 8 
$ 433 
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 Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the 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 Consolidated Financial Statements.
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.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash Equivalents
Cash equivalents include demand deposits and short-term investments with a maturity of three months or less when purchased.
The Company maintains its cash deposits at numerous banks located throughout the United States, Canada, India, Australia, the United Kingdom and China, which at times, may exceed federally insured limits. UDS, the Company’s operations in China, held $13.7 million of the Company’s cash and cash equivalents as of December 31, 2015. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risk on cash and cash equivalents.
Restricted Cash
As of December 31, 2014, the Company had restricted cash of $1.4 million related to a government grant received by UNIS Document Solutions Co. Ltd., (“UDS”), the Company's joint-venture in China, which was included in other current assets. Restrictions on the cash were removed in 2015 upon approval by the governmental agency of project-based expenditures supporting technology investments made by UDS.
Concentrations of Credit Risk and Significant Vendors
Concentrations of credit risk with respect to trade receivables are limited due to a large, diverse customer base. No individual customer represented more than 4% of net sales during the years ended December 31, 2015, 2014 and 2013.
The Company has geographic concentration risk as sales in California, as a percent of total sales, were approximately 31%, 30% and 31% for the years ended December 31, 2015, 2014 and 2013, respectively.
The Company contracts with various suppliers. Although there are a limited number of suppliers that could supply the Company’s inventory, management believes any shortfalls from existing suppliers would be absorbed from other suppliers on comparable terms. However, a change in suppliers could cause a delay in sales and adversely affect results.
Purchases from the Company’s three largest vendors during the years ended December 31, 2015, 2014 and 2013 comprised approximately 37%, 33%, and 36% respectively, of the Company’s total purchases of inventory and supplies.

Allowance for Doubtful Accounts
The Company performs periodic credit evaluations of the financial condition of its customers, monitors collections and payments from customers, and generally does not require collateral. The Company provides for the possible inability to collect accounts receivable by recording an allowance for doubtful accounts. The Company writes off an account when it is considered uncollectible. The Company estimates the allowance for doubtful accounts based on historical experience, aging of accounts receivable, and information regarding the credit worthiness of its customers. Additionally, the Company provides an allowance for returns and discounts based on historical experience. In 2015, 2014, and 2013 the Company recorded expenses of $0.3 million, $0.5 million and $0.6 million, respectively, related to the allowance for doubtful accounts.
Inventories
Inventories are valued at the lower of cost (determined on a first-in, first-out basis; or average cost) or market. Inventories primarily consist of reprographics materials for use and resale, and equipment for resale. On an ongoing basis, inventories are reviewed and adjusted for estimated obsolescence or unmarketable inventories to reflect the lower of cost or market. Charges to increase inventory reserves are recorded as an increase in cost of sales. Estimated inventory obsolescence has been provided for in the financial statements and has been within the range of management’s expectations. As of December 31, 2015 and 2014, the reserves for inventory obsolescence was $0.9 million.
Income Taxes
Deferred tax assets and liabilities reflect temporary differences between the amount of assets and liabilities for financial and tax reporting purposes. Such amounts are adjusted, as appropriate, to reflect changes in tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce the Company's deferred tax assets to the amount that is more likely than not to be realized. Changes in tax laws or accounting standards and methods may affect recorded deferred taxes in future periods.

When establishing a valuation allowance, the Company considers future sources of taxable income such as future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards and tax planning strategies. A tax planning strategy is an action that: is prudent and feasible; an enterprise ordinarily might not take, but would take to prevent an operating loss or tax credit carryforward from expiring unused; and would result in realization of deferred tax assets. In the event the Company determines that its deferred tax assets, more likely than not, will not be realized in the future, the valuation adjustment to the deferred tax assets will be charged to earnings in the period in which the Company makes such a determination.
At September 30, 2015 as a result of sustained profitability in the U.S. evidenced by three years of earnings and forecasted continuing profitability (as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740-10, Income Taxes), the Company determined it was more likely than not future earnings would be sufficient to realize 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 $1.3 million valuation allowance against certain deferred tax assets as of December 31, 2015.
In future quarters the Company will continue to evaluate its historical results for the preceding twelve quarters and its future projections to determine whether the Company will generate sufficient taxable income to utilize its deferred tax assets, and whether a valuation allowance is required. Should the Company generate sufficient taxable income, however, a portion or all of the then current valuation allowance may be reversed.
The Company calculates its current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed returns are recorded when identified.

Income taxes have not been provided on certain undistributed earnings of foreign subsidiaries because such earnings are considered to be permanently reinvested.

The amount of taxable income or loss the Company reports to the various tax jurisdictions is subject to ongoing audits by federal, state and foreign tax authorities. The Company's estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. The Company uses a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company records a liability for the difference between the benefit recognized and measured and tax position taken or expected to be taken on its tax return. To the extent that the Company's assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The Company reports tax-related interest and penalties as a component of income tax expense.
The Company’s effective income tax rate differs from the statutory tax rate primarily due to the valuation allowance on certain of the Company’s deferred tax assets, state income taxes, stock-based compensation, goodwill and other identifiable intangibles, and other discrete items. See Note 9 “Income Taxes” for further information.
Income tax deficiencies and benefits affecting stockholders’ equity are primarily related to employee stock-based compensation.
Property and Equipment
Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives, as follows:
 
Buildings
  
10-20 years
Leasehold improvements
  
10-20 years or lease term, if shorter
Machinery and equipment
  
3-7 years
Furniture and fixtures
  
3-7 years

Assets acquired under capital lease arrangements are included in machinery and equipment, are recorded at the present value of the minimum lease payments, and are depreciated using the straight-line method over the life of the asset or term of the lease, whichever is shorter. Expenses for repairs and maintenance are charged to expense as incurred, while renewals and betterments are capitalized. Gains or losses on the sale or disposal of property and equipment are reflected in operating income.

The Company accounts for software costs developed for internal use in accordance with ASC 350-40, Intangibles – Goodwill and Other, which requires companies to capitalize certain qualifying costs incurred during the application development stage of the related software development project. The primary use of this software is for internal use and, accordingly, such capitalized software development costs are depreciated on a straight-line basis over the economic lives of the related products not to exceed three years. The Company’s machinery and equipment (see Note 6 “Property and Equipment”) includes $0.6 million and $0.1 million of capitalized software development costs as of December 31, 2015 and 2014, net of accumulated amortization of $17.7 million and $17.5 million as of December 31, 2015 and 2014, respectively. Depreciation expense includes the amortization of capitalized software development costs which amounted to $0.2 million, $0.2 million and $0.3 million during the years ended December 31, 2015, 2014 and 2013, respectively.
Impairment of 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 2015, 2014 or 2013.
Goodwill and Other Intangible Assets
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.
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.
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.
Deferred Financing Costs
Direct costs incurred in connection with debt agreements are capitalized as incurred and amortized based on the effective interest method for the Company's borrowings under its term loan credit agreement ("Term A Credit Agreement"). At December 31, 2015 and 2014, the Company had deferred financing costs of $1.6 million and $2.4 million, respectively, net of accumulated amortization of $1.0 million and $0.1 million, respectively.
In 2014, the Company added $2.5 million of deferred financing costs related to its Term A Credit Agreement. In addition, the Company wrote off $2.4 million of deferred financing costs due to the extinguishment, in full, of its previous credit agreements.
Derivative Financial Instruments
In January 2015, the Company entered into three 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.
As of and for the year ended December 31, 2014 the Company was not party to any derivative or hedging transactions.
Historically, the Company enters into derivative instruments to manage its exposure to changes in interest rates. These instruments allow the Company to raise funds at floating rates and effectively swap them into fixed rates, without the exchange of the underlying principal amount. Such agreements are designated and accounted for under ASC 815, Derivatives and Hedging. Derivative instruments are recorded at fair value as either assets or liabilities in the Consolidated Balance Sheets.

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 Consolidated Balance Sheet were $6.3 million and $9.2 million as of December 31, 2015 and 2014, respectively, and are carried at cost and approximate fair value due to the relatively short period to maturity of these instruments.
Interest rate cap contracts: 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. Interest rate cap contracts reported in the Company's Consolidated Balance Sheet were $0.2 million as of December 31, 2015.

Contingent Liabilities: The Company recognizes liabilities for future earnout obligations on business acquisitions 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. Liabilities for future earnout obligations totaled $1.1 million as of December 31, 2015.
Short- and long-term debt: The carrying amount of the Company’s capital leases reported in the 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 Consolidated Balance Sheet as of December 31, 2015 for borrowings under its Term Loan Credit Agreement is $143.0 million. The Company has determined, utilizing observable market quotes, that the fair value of borrowings under its Term Loan Credit Agreement is $143.0 million, as of December 31, 2015.
Insurance Liability
The Company maintains a high deductible insurance policy for a significant portion of its risks and associated liabilities with respect to workers’ compensation. The Company’s deductible is $250 thousand per individual. The accrued liabilities associated with this program are based on the Company’s estimate of the ultimate costs to settle known claims, as well as claims incurred but not yet reported to the Company, as of the balance sheet date. The Company’s estimated liability is not discounted and is based upon an actuarial report obtained from a third party. The actuarial report uses information provided by the Company’s insurance brokers and insurers, combined with the Company’s judgments regarding a number of assumptions and factors, including the frequency and severity of claims, claims development history, case jurisdiction, applicable legislation, and the Company’s claims settlement practices.
The Company is self-insured for healthcare benefits provided to approximately 35% of its employees, with a stop-loss at $250 thousand per individual. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. The Company’s results could be materially affected by claims and other expenses related to such plans if future occurrences and claims differ from these assumptions and historical trends. Other employees are covered by other offered healthcare benefits.
Commitments and Contingencies
In the normal course of business, the Company estimates potential future loss accruals related to legal, workers’ compensation, healthcare, tax and other contingencies. These accruals require management’s judgment on the outcome of various events based on the best available information. However, due to changes in facts and circumstances, the ultimate outcomes could differ from management’s estimates.
Revenue Recognition
The Company applies the provisions of ASC 605, Revenue Recognition. In general, the Company recognizes revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery of products has occurred or services have been rendered, (iii) the sales price charged is fixed or determinable and (iv) collection is reasonably assured. Net sales include an allowance for estimated sales returns and discounts.
The Company recognizes service revenue when services have been rendered, while revenues from the resale of equipment and supplies are recognized upon delivery to the customer or upon customer pickup. Revenue from equipment service agreements are recognized over the term of the service agreement.
The Company has established contractual pricing for certain large national customer accounts (“Global Solutions”). These contracts generally establish uniform pricing at all operating segments for Global Solutions. Revenues earned from the Company’s Global Solutions are recognized in the same manner as non-Global Solutions revenues.
Included in revenues are fees charged to customers for shipping, handling, and delivery services. Such revenues amounted to $11.2 million, $11.6 million, and $12.1 million for the years ended December 31, 2015, 2014 and 2013, respectively.
Revenues from hosted software licensing activities are recognized ratably over the term of the license. Revenues from software licensing activities comprise less than 1% of the Company’s consolidated revenues during the years ended December 31, 2015, 2014 and 2013.
Management provides for returns, discounts and allowances based on historic experience and adjusts such allowances as considered necessary. To date, such provisions have been within the range of management’s expectations.
Comprehensive Income (Loss)
The Company’s comprehensive income (loss) includes foreign currency translation adjustments and the fair value adjustment of derivatives, net of taxes.
In January 2015, the Company entered into three 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.
Asset and liability accounts of international operations are translated into the Company’s functional currency, U.S. dollars, at current rates. Revenues and expenses are translated at the weighted-average currency rate for the fiscal year.

Segment and Geographic Reporting
The provisions of ASC 280, Segment Reporting, 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, 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:
 
 
Year Ended December 31,
 
2015
 
2014
 
2013
Service Sales
 
 
 
 
 
CDIM
$
221,174

 
$
219,764

 
$
216,305

MPS
144,244

 
141,313

 
128,205

AIM
13,220

 
10,807

 
10,848

Total services sales
378,638

 
371,884

 
355,358

Equipment and Supplies Sales
50,027

 
51,872

 
51,837

Total net sales
$
428,665

 
$
423,756

 
$
407,195

 
The Company recognizes revenues in geographic areas based on the location to which the product was shipped or services have been rendered. Operations outside the United States have been small but growing. See table below for revenues and long-lived assets, net, excluding intangible assets, attributable to the Company’s U.S. operations and foreign operations. 
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
 
 
U.S.
 
Foreign
Countries
 
Total
 
U.S.
 
Foreign
Countries
 
Total
 
U.S.
 
Foreign
Countries
 
Total
Revenues from external customers
 
$
366,082

 
$
62,583

 
$
428,665

 
$
364,382

 
$
59,374

 
$
423,756

 
$
354,995

 
$
52,200

 
$
407,195

Long-lived assets, net, excluding intangible assets
 
$
50,777

 
$
6,813

 
$
57,590

 
$
51,826

 
$
7,694

 
$
59,520

 
$
48,319

 
$
7,862

 
$
56,181


Advertising and Shipping and Handling Costs
Advertising costs are expensed as incurred and approximated $2.0 million, $1.7 million, and $1.4 million during the years ended December 31, 2015, 2014 and 2013, respectively. Shipping and handling costs incurred by the Company are included in cost of sales.
Stock-Based Compensation
The Company applies the Black-Scholes valuation model in determining the fair value of share-based payments to employees, which is then amortized on a straight-line basis over the requisite service period.
Total stock-based compensation for the years ended December 31, 2015, 2014 and 2013, was $3.5 million, $3.8 million and $3.2 million, respectively and was recorded in selling, general, and administrative expenses, consistent with the classification of the underlying salaries. In accordance with ASC 718, Income Taxes, any excess tax benefit resulting from stock-based compensation, in the Consolidated Statements of Cash Flows, are classified as financing cash inflows.
The weighted average fair value at the grant date for options issued in the fiscal years ended December 31, 2015, 2014 and 2013, was $4.88, $3.69 and $1.57 respectively. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model using the following weighted average assumptions for the years ended December 31, 2015 and 2014 and 2013: 
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
Weighted average assumptions used:
 
 
 
 
 
 
Risk free interest rate
 
1.62
%
 
2.12
%
 
1.36
%
Expected volatility
 
56.2
%
 
57.3
%
 
59.7
%
Expected dividend yield
 
—
%
 
—
%
 
—
%

Using historical exercise data as a basis, the Company determined that the expected term for stock options issued in 2015, 2014 and 2013 was 6.4 years, 7.1 years and 7.0 years, respectively.
For fiscal years 2015, 2014 and 2013, expected stock price volatility is based on the Company’s historical volatility for a period equal to the expected term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with an equivalent remaining term. The Company has not paid dividends in the past and does not currently plan to pay dividends in the near future. The Company assumed a forfeiture rate of 4% in 2015, 3% in 2014 and 3% in 2013. The Company’s assumed forfeiture rate is based on the historical forfeiture rate for employees at similar levels in the Company. The Company reviews its forfeiture rate at least on an annual basis.
As of December 31, 2015, total unrecognized stock-based compensation expense related to nonvested stock-based compensation was approximately $3.8 million, which is expected to be recognized over a weighted average period of approximately 2.0 years.
For additional information, see Note 10 “Employee Stock Purchase Plan and Stock Plan.”
Research and Development Expenses
Research and development activities relate to costs associated with the design and testing of new technology or enhancements and maintenance to existing technology. Such costs are expensed as incurred are primarily recorded to cost of sales. In total, research and development amounted to $5.8 million, $6.3 million and $5.5 million during the fiscal years ended December 31, 2015, 2014 and 2013, respectively.
Noncontrolling Interest
The Company accounted for its investment in UNIS Document Solutions Co. Ltd., (“UDS”) under the purchase method of accounting, in accordance with ASC 805, Business Combinations. UDS has been consolidated in the Company’s financial statements from the date of acquisition. Noncontrolling interest, which represents the 35 percent non-controlling interest in UDS, is reflected on the Company’s Consolidated Financial Statements.
Sales Taxes
The Company bills sales taxes, as applicable, to its customers. The Company acts as an agent and bills, collects, and remits the sales tax to the proper government jurisdiction. The sales taxes are accounted for on a net basis, and therefore are not included as part of the Company’s revenue.
Earnings Per Share
The Company accounts for earnings per share in accordance with ASC 260, Earnings Per Share. Basic earnings per share are 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. There were 2.0 million, 1.5 million and 2.1 million common stock options excluded as their effect would have been anti-dilutive for the years ended December 31, 2015, 2014 and 2013, respectively. 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 years ended December 31, 2015, 2014 and 2013:
 
 
Year Ended December 31,
 
2015
 
2014
 
2013
Weighted average common shares outstanding during the period — basic
46,631

 
46,245

 
45,856

Effect of dilutive stock options
901

 
843

 
—

Weighted average common shares outstanding during the period — diluted
47,532

 
47,088

 
45,856


Recent Accounting Pronouncements

On February 25, 2016, the FASB issued Accounting Standards Codification (“ASC”) 842 (“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 November 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The new guidance requires that deferred tax assets and liabilities be classified as noncurrent in a classified balance sheet in order to simplify the presentation of deferred income taxes. ASU 2015-17 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted and the update may be applied either prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company elected to early adopt ASU 2015-17 as of December 31, 2015 on a prospective basis.
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 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. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2015-05 on its 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. Early adoption is permitted. The Company expects to adopt ASU 2015-03 for the quarterly report on Form 10-Q for the three months ended March 31, 2016.
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 not permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements.
Restructuring Expenses
Restructuring Expenses
RESTRUCTURING EXPENSES
To ensure that the Company’s costs and resources were in line with demand for its current portfolio of services and products, management initiated a restructuring plan in the fourth quarter of 2012. Restructuring activities associated with the plan concluded in the fourth quarter of 2013. Through December 31, 2013, the restructuring plan included the closure or downsizing of 56 of the Company’s service centers, which represented more than 25% of its total number of service center locations. In addition, as part of the restructuring plan, the Company reduced headcount and middle management associated with its service center locations, streamlined the senior operational management team, and allocated more resources into growing sales categories such as MPS. The reduction in headcount totaled approximately 300 full-time employees, which represented approximately 10% of the Company’s total workforce. To date, the Company has incurred $6.7 million of expense related to its restructuring plan.
Restructuring expenses include employee termination costs, estimated lease termination and obligation costs, and other restructuring expenses. The Company’s restructuring efforts included service center closures in both 2012 and 2013. The Company closed or downsized 23 service center locations in 2013, in addition to 33 service center locations in 2012. Restructuring expenses in 2015 primarily consisted of revised estimated lease termination and obligation costs resulting from facilities closed in 2013.
The following table summarizes restructuring expenses incurred in 2015, 2014 and 2013:
 
 
Year Ended December 31,
 
2015
 
2014
 
2013
Employee termination costs
$
—

 
$
—

 
$
15

Estimated lease termination and obligation costs
89

 
554

 
1,803

Other restructuring expenses
—

 
223

 
726

Total restructuring expenses
$
89

 
$
777

 
$
2,544


The changes in the restructuring liability from December 31, 2013 through December 31, 2015 are summarized as follows:
 
 
 
Balance, December 31, 2013
$
539

Restructuring expenses
777

Payments
(1,203
)
Balance, December 31, 2014
$
113

Restructuring expenses
89

Payments
(165
)
Balance, December 31, 2015
$
37

Acquisitions
Acquisitions
ACQUISITIONS
During 2015 the Company had no business acquisitions.
During 2014, the Company acquired five businesses. Consideration for the purchase of the five businesses included earnout liabilities of $2.1 million, of which $0.6 million and $0.3 million were paid in cash in 2015 and 2014, respectively, with a remaining earnout liabilities balance of $1.1 million as of December 31, 2015. The Company's requirement to pay these earnout liabilities is contingent upon the future financial growth of the acquired businesses. The results of operations of the companies acquired have been included in the Consolidated Financial Statements from their respective dates of acquisition. The acquisitions, individually and in aggregate, were not material to the Company's consolidated results of operations.
Goodwill and Other Intangibles Resulting from Business Acquisitions
Goodwill and Other Intangibles Resulting from Business Acquisitions
GOODWILL AND OTHER INTANGIBLES RESULTING FROM BUSINESS ACQUISITIONS
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 preliminary assessment and noted that one reporting unit failed step one of the impairment analysis; however, step two of the analysis was subject to finalization of the implied fair value of goodwill. The Company completed step two of the analysis in the fourth quarter of 2015 with no change to the previous estimate that there was no goodwill impairment as of September 30, 2015.
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 in the carrying amount of goodwill from January 1, 2014 through 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 Company acquired five businesses during 2014 and recorded customer relationship intangibles of $2.1 million related to the acquisitions.
The following table sets forth the Company’s other intangible assets resulting from business acquisitions as of December 31, 2015 and December 31, 2014 which continue to be amortized:
 
 
December 31, 2015
 
December 31, 2014
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Amortizable other intangible assets
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
$
99,050

 
$
81,572

 
$
17,478

 
$
99,606

 
$
76,298

 
$
23,308

Trade names and trademarks
20,329

 
19,861

 
468

 
20,370

 
19,837

 
533

 
$
119,379

 
$
101,433

 
$
17,946

 
$
119,976

 
$
96,135

 
$
23,841


Based on current information, estimated future amortization expense of other intangible assets for each of the next five fiscal years and thereafter are as follows:
 
2016
$
4,793

2017
4,238

2018
3,829

2019
3,112

2020
1,505

Thereafter
469

 
$
17,946

Property and Equipment
Property and Equipment
PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
 
December 31,
 
2015
 
2014
Machinery and equipment
$
241,125

 
$
254,206

Buildings and leasehold improvements
15,833

 
16,399

Furniture and fixtures
3,089

 
3,612

 
260,047

 
274,217

Less accumulated depreciation
(202,457
)
 
(214,697
)
 
$
57,590

 
$
59,520


Depreciation expense was $28.0 million, $28.1 million, and $28.1 million for the years ended December 31, 2015, 2014 and 2013, respectively.
Long-Term Debt
Long-Term Debt
LONG-TERM DEBT
Long-term debt consists of the following:
 
 
December 31,
 
2015
 
2014
Term A loan facility maturing 2019; 2.50% and 2.74% interest rate at December 31, 2015 and December 31, 2014
$
143,000

 
$
173,000

Various capital leases; weighted average interest rate of 5.8% and 6.8% at December 31, 2015 and December 31, 2014; principal and interest payable monthly through November 2020
29,866

 
28,789

Borrowings from foreign revolving credit facilities; 0.6% interest rate at December 31, 2014
—

 
1,897

Various other notes payable with a weighted average interest rate of 8.5% and 6.5% at December 31, 2015 and December 31, 2014; principal and interest payable monthly through November 2019
112

 
199

 
172,978

 
203,885

Less current portion
(14,374
)
 
(27,969
)
 
$
158,604

 
$
175,916


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 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 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 December 31, 2015, 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% per annum, 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 our 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 December 31, 2015, the Company paid $32.0 million in aggregate principal on its $175.0 million Term Loan Credit Agreement, which was $14.5 million above the required principal payments. The $14.5 million early pay down of the term loan resulted in a loss on extinguishment of debt of $0.3 million in 2015.
Term B Loan Facility

On December 20, 2013, we entered into a Term Loan Credit Agreement (the “Term B Loan Credit Agreement”) among ARC, as borrower, JPMorgan Chase Bank., N.A, as administrative agent and as collateral agent, and the lenders party thereto. Concurrently with the Company’s entry into the Term A Credit Agreement described above, the Company paid in full and terminated the Term B Loan Credit Agreement resulting in a loss on early extinguishment of debt of $5.6 million in 2014.

The credit facility provided under the Term B Loan Credit Agreement consisted of an initial term loan facility of $200.0 million, the entirety of which was disbursed in order to pay for the purchase of the Notes that were accepted under a cash tender offer and the subsequent redemption of the remaining outstanding Notes and to pay associated fees and expenses in connection with the cash tender offer and redemption.
10.5% Senior Notes
On December 1, 2010, the Company completed a private placement of 10.5% senior unsecured notes due 2016 (the “Notes”). During the third and fourth quarters of 2013, the Company repurchased $12.3 million in aggregate principal amount of the Notes in the open market using available cash. In December 2013 the Company commenced a cash tender offer and consent solicitation for all of the remaining outstanding Notes and accepted for payment all Notes that were validly tendered, followed by a redemption of all Notes which remained outstanding following the tender offer. In addition, the Company discharged all of its obligations under the indenture governing the Notes by causing to be delivered a notice of redemption to holders of the remaining outstanding Notes and the Company deposited funds sufficient to pay and discharge all remaining indebtedness on the Notes, including accrued and unpaid interest. The purchase and redemption of the Notes resulted in a loss on early extinguishment of debt of $16.3 million in 2013.
Foreign Credit Agreement
In the third quarter of 2014, in conjunction with its Chinese operations, UNIS Document Solutions Co. Ltd. (“UDS”), the Company’s Chinese business venture with Beijing-based Unisplendour, entered into a revolving credit facility with a term of 12 months. The credit agreement expired in September 2015.
Other Notes Payable
Includes notes payable collateralized by equipment previously purchased.
Minimum future maturities of long-term debt and capital lease obligations as of December 31, 2015 are as follows:
 
 
Long-Term Debt
 
Capital Lease Obligations
Year ending December 31:
 
 
 
2016
$
3,112

 
$
11,262

2017
17,500

 
9,164

2018
17,500

 
6,307

2019
105,000

 
2,595

2020
—

 
538

Thereafter
—

 
—

 
$
143,112

 
$
29,866

Commitments and Contingencies
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES
The Company leases machinery, equipment, and office and operational facilities under non-cancelable operating lease agreements. Certain lease agreements for the Company’s facilities generally contain renewal options and provide for annual increases in rent based on the local Consumer Price Index. The following is a schedule of the Company’s future minimum lease payments as of December 31, 2015:
 
 
 
Third Party
 
Related Party
 
Total
Year ending December 31:
 
 
 
 
 
 
2016
 
$
15,565

 
$
504

 
$
16,069

2017
 
11,267

 
504

 
11,771

2018
 
7,160

 
504

 
7,664

2019
 
3,992

 
514

 
4,506

2020
 
2,831

 
514

 
3,345

Thereafter
 
2,826

 
1,542

 
4,368

 
 
$
43,641

 
$
4,082

 
$
47,723


Total rent expense under operating leases, including month-to-month rentals, amounted to $24.0 million, $23.4 million, and $24.1 million during the years ended December 31, 2015, 2014 and 2013, respectively. Under certain lease agreements, the Company is responsible for other costs such as property taxes, insurance, maintenance, and utilities.
The Company leased several of its facilities under lease agreements with entities owned by certain of its current and former executive officers which expire through December 2023. The rental payments on these facilities amounted to $0.5 million, $0.5 million and $0.9 million during the years ended December 31, 2015, 2014 and 2013, respectively.
The Company has entered into indemnification agreements with each director and named executive officer which provide indemnification under certain circumstances for acts and omissions which may not be covered by any directors’ and officers’ liability insurance. The indemnification agreements may require the Company, among other things, to indemnify its officers and directors against certain liabilities that may arise by reason of their status or service as officers and directors (other than liabilities arising from willful misconduct of a culpable nature), to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified, and to obtain officers’ and directors’ insurance if available on reasonable terms. There have been no events to date which would require the Company to indemnify its officers or directors.
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. The Company has received preliminary court approval of the settlement, and awaits final court approval. The Company has a liability $0.9 million as of December 31, 2015 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.
On February 1, 2013, ARC filed a civil complaint against a competitor and a former employee in the Superior Court of California for Orange County, which alleged, among other claims, the misappropriation of ARC trade secrets; namely, proprietary customer lists that were used to communicate with ARC customers in an attempt to unfairly acquire their business. In prior litigation with the competitor based on related facts, in 2007 the competitor entered into a settlement agreement and stipulated judgment, which included an injunction. ARC instituted this suit to stop the defendant from using similar unfair business practices against it in the Southern California market. The case proceeded to trial in May 2014, and a jury verdict was entered for the defendants. In the first quarter of 2015, the Company settled with the defendants and paid $1.0 million, which had been accrued as of December 31, 2014.

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.
Income Taxes
Income Taxes
INCOME TAXES
The following table includes the consolidated income tax provision for federal, state, and foreign income taxes related to the Company’s total earnings before taxes for 2015, 2014 and 2013:
 
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
Current:
 
 
 
 
 
 
Federal
 
$
219

 
$
—

 
$
—

State
 
364

 
86

 
264

Foreign
 
481

 
392

 
354

 
 
1,064

 
478

 
618

Deferred:
 
 
 
 
 
 
Federal
 
(56,750
)
 
1,453

 
1,898

State
 
(13,705
)
 
343

 
869

Foreign
 
(41
)
 
74

 
(399
)
 
 
(70,496
)
 
1,870

 
2,368

Income tax (benefit) provision
 
$
(69,432
)
 
$
2,348

 
$
2,986


The Company's foreign earnings before taxes were $1.1 million, $0.3 million and $2.3 million for 2015, 2014 and 2013, respectively.
The consolidated deferred tax assets and liabilities consist of the following:
 
 
December 31,
 
2015
 
2014
Deferred tax assets:
 
 
 
Financial statement accruals not currently deductible
$
3,409

 
$
3,661

Accrued vacation
1,215

 
914

Deferred revenue
280

 
420

State taxes
116

 
62

Fixed assets
7,647

 
8,004

Goodwill and other identifiable intangibles
20,828

 
25,079

Stock-based compensation
5,562

 
5,098

Federal tax net operating loss carryforward
29,089

 
33,005

State tax net operating loss carryforward, net
5,096

 
5,179

State tax credits, net
1,002

 
994

Foreign tax credit carryforward
517

 
506

Foreign tax net operating loss carryforward
380

 
455

Federal alternative minimum tax
222

 
—

Interest rate hedge
140

 
—

Gross deferred tax assets
75,503

 
83,377

Less: valuation allowance
(1,307
)
 
(81,989
)
Net deferred tax assets
74,196

 
1,388

 
 
 
 
Deferred tax liabilities:
 
 
 
Goodwill and other identifiable intangibles
$
(35,933
)
 
$
(33,463
)
Net deferred tax assets (liabilities)
$
38,263

 
$
(32,075
)


A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
 
 
Year Ended December 31,
 
2015
 
2014
 
2013
Statutory federal income tax rate
35
 %
 
35
%
 
35
 %
State taxes, net of federal benefit
5

 
4

 
3

Foreign taxes
—

 
1

 
4

Valuation allowance
(289
)
 
(36
)
 
(63
)
Non-deductible expenses and other
1

 
3

 
(1
)
Section 162(m) limitation
1

 
4

 
(2
)
Stock-based compensation
—

 
16

 
(8
)
Discrete item for state taxes
(1
)
 
(4
)
 
8

Discrete items for other
—

 
1

 
(2
)
Effective income tax rate
(248
)%
 
24
%
 
(26
)%


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 $1.3 million valuation allowance against certain deferred tax assets as of December 31, 2015.

Based on the Company’s assessment, the remaining net deferred tax assets as of December 31, 2015 are considered more likely than not to be realized. The valuation allowance of $1.3 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 $20 thousand as of December 31, 2015 included in other current assets in its Consolidated Balance Sheet primarily related to income tax refunds for prior years.
As of December 31, 2015, the Company had approximately $83.1 million of consolidated federal, $100.6 million of state and $1.9 million of foreign net operating loss and charitable contribution carryforwards available to offset future taxable income, respectively. The federal net operating loss carryforward began in 2011 and will begin to expire in varying amounts between 2031 and 2034. The charitable contribution carryforward began in 2009 and will begin to expire in varying amounts between 2016 and 2020. The state net operating loss carryforwards expire in varying amounts between 2016 and 2034. The foreign net operating loss carryforwards begin to expire in varying amounts beginning in 2016.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2010. In 2010, the IRS commenced an examination of the Company’s U.S. income tax return for 2008, which was completed in February of 2011. The IRS did not propose any adjustments to the Company’s 2008 U.S. income tax return. In 2011, the IRS commenced an examination of the Company’s 2009 and 2010 U.S. income tax returns. The IRS did not propose any significant adjustments to the Company’s 2009 and 2010 U.S. income tax returns as of December 31, 2015.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
 
 
2014
 
2013
Beginning balance at January 1,
 
$
266

 
$
266

Additions based on tax positions related to the current year
 
—

 
—

Reductions based on tax positions related to the prior year
 
(266
)
 
—

Reductions for tax positions due to expiration of statute of limitations
 
—

 
—

Ending balance at December 31,
 
$
—

 
$
266


There were no unrecognized tax benefits as of and for the year ended December 31, 2015.
Employee Stock Purchase Plan and Stock Plan
Employee Stock Purchase Plan and Stock Plan
EMPLOYEE STOCK PURCHASE PLAN AND STOCK PLAN
Employee Stock Purchase Plan
Under the Company’s Employee Stock Purchase Plan (the “ESPP”) eligible employees may purchase up to a calendar year maximum per eligible employee of the lesser of (i) 2,500 shares of common stock, or (ii) a number of shares of common stock having an aggregate fair market value of $25 thousand as determined on the date of purchase at 85% of the fair market value of such shares of common stock on the applicable purchase date. The compensation expense in connection with the ESPP in 2015, 2014, and 2013 was $19 thousand, $15 thousand and $5 thousand, respectively.

Employees purchased the following shares in the periods presented:
 
 
Year Ended December 31,
 
2015
 
2014
 
2013
Shares purchased
21

 
13

 
6

Average price per share
$
5.40

 
$
6.24

 
$
4.90


Stock Plan
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. At December 31, 2015, 2.3 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 years ended December 31, 2015 and 2014, the Company granted options to acquire a total of 526 thousand shares and 579 thousand shares, respectively, 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. The granted stock options vest annually over three to four years from the grant date and expire 10 years after the date of grant.
The following is a further breakdown of the stock option activity under the Stock Plan:
 
 
Year Ended December 31, 2015
 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Contractual
Life
(In years)
 
Aggregate
Intrinsic
Value
(In thousands)
Outstanding at December 31, 2013
3,613

 
$
5.57

 
 
 
 
Granted
579

 
$
6.25

 
 
 
 
Exercised
(223
)
 
$
5.53

 
 
 
 
Forfeited/Cancelled
(288
)
 
$
7.86

 
 
 
 
Outstanding at December 31, 2014
3,681

 
$
5.50

 
 
 
 
Granted
526

 
$
8.91

 
 
 
 
Exercised
(154
)
 
$
4.36

 
 
 
 
Forfeited/Cancelled
(100
)
 
$
11.76

 
 
 
 
Outstanding at December 31, 2015
3,953

 
$
5.84

 
6.55
 
$
2,441

Vested or expected to vest at December 31, 2015
3,918

 
$
5.83

 
6.53
 
$
2,436

Exercisable at December 31, 2015
2,570

 
$
5.80

 
5.64
 
$
1,558


The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the closing stock price on December 31, 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all the option holders exercised their options on December 31, 2015. This amount changes based on the fair market value of the common stock. Total intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013 was $0.6 million, $0.4 million and $27 thousand, respectively.

A summary of the Company’s non-vested stock options as of December 31, 2015, and changes during the fiscal year then ended is as follows:
 
 
 
Weighted
Average Grant Date
Non-vested Options
Shares
 
Fair Market Value
Non-vested at December 31, 2014
1,803

 
$
2.43

Granted
526

 
$
4.88

Vested
(898
)
 
$
4.13

Forfeited/Cancelled
(48
)
 
$
6.40

Non-vested at December 31, 2015
1,383

 
$
5.92

The following table summarizes certain information concerning outstanding options at December 31, 2015:
 
 
 
Range of Exercise Price
Options Outstanding at
December 31, 2015
$2.37 – $3.99
1,396

$5.37 – $7.19
1,070

$8.20 – $9.09
1,467

$35.42
20

$2.37 – $35.42
3,953

Restricted Stock
The Stock Plan provides for automatic grants of restricted stock awards to non-employee directors of the Company, as of each annual meeting of the Company’s stockholders having a then fair market value equal to $60 thousand.
In 2015, the Company granted 116 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 restricted stock vests annually over three to four years from the grant date. In addition, the Company granted 7 thousand shares of restricted stock to each of the Company's six non-employee members of its board of directors 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 restricted stock vests on the one-year anniversary of the grant date.
In 2014, the Company granted 144 thousand shares of restricted stock to the Company's Chief Executive Officer. The restricted stock vests annually over four years after the date of grant. In addition, the Company granted 9 thousand shares of restricted stock to each of the Company's six non-employee members of its board of directors 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 restricted stock vests on the one-year anniversary of the grant date.
In 2013, the Company granted 15 thousand shares of restricted stock to each of the Company’s six non-employee members of its Board of Directors at a price per share equal to the closing price of the Company’s common stock on the respective dates the restricted stock was granted. The shares of restricted stock granted to the non-employee board members vested on the one-year anniversary of the grant date.

A summary of the Company’s non-vested restricted stock as of December 31, 2015, and changes during the fiscal year then ended is as follows:
 
 
 
Weighted
Average Grant Date
Non-vested Restricted Stock
Shares
 
Fair Market Value
Non-vested at December 31, 2014
290

 
$
7.57

Granted
158

 
$
8.95

Vested
(179
)
 
$
7.67

Forfeited/Cancelled
(3
)
 
$
8.77

Non-vested at December 31, 2015
266

 
$
8.31


The total fair value of restricted stock awards vested during the years ended December 31, 2015, 2014 and 2013 was $1.6 million, $1.8 million and $0.8 million, respectively.
Retirement Plans
Retirement Plans
RETIREMENT PLANS
The Company sponsors a 401(k) Plan, which covers substantially all employees of the Company who have attained age 21. Under the Company’s 401(k) Plan, eligible employees may contribute up to 75% of their annual eligible compensation (or in the case of highly compensated employees, up to 6% of their annual eligible compensation), subject to contribution limitations imposed by the Internal Revenue Service. During a portion of 2009, the Company made an employer matching contribution equal to 20% of an employee’s contributions, up to a total of 4% of that employee’s compensation. In July 2009, the Company amended its 401(k) Plan to eliminate the mandatory company contribution and to provide for discretionary company contributions. In 2013, the Company reinstated the mandatory company contribution. An independent third party administers the Company’s 401(k) Plan. The Company's total expense under these plans amounted to $0.4 million, $80 thousand and $50 thousand during the years ended December 31, 2015, 2014 and 2013, respectively.
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 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 $0.2 million from AOCL to interest expense.
The following table summarizes the fair value and classification on the Consolidated Balance Sheets of the Company's derivatives as of December 31, 2015:

 
 
 
 
 
 
 
 
Fair Value
 
 
Balance Sheet Classification
 
December 31, 2015
 
Derivative designated as hedging instrument under ASC 815
 
 
 
 
Interest rate cap contracts - current portion
Other current assets
 
$
48

 
Interest rate cap contracts - long-term portion
Other assets
 
191

 
Total derivatives designated as hedging instruments
 
 
$
239

 


As of and for the year ended December 31, 2014 the Company was not party to any derivative or hedging transactions.

The following table summarizes the loss recognized in AOCL of derivatives, designated and qualifying as cash flow hedges for the year ended December 31, 2015, 2014 and 2013:

 
 
 
 
 
 
 
Amount of Loss Recognized in AOCL on Derivative
 
Year Ended December 31,
 
2015
 
2014
 
2013
Derivative in ASC 815 Cash Flow Hedging Relationship
 
 
 
 
 
Interest rate cap contracts, net of tax
$
(211
)
 
$
—

 
$
—



The following table summarizes the effect of the interest rate cap on the Consolidated Statements of Operations for the year ended December 31, 2015, 2014 and 2013:
 
 
Amount of Gain or (Loss)
Reclassified from AOCL into Income
 
Amount of Gain or (Loss)
Recognized in Income
 
(effective portion)
 
(ineffective portion)
 
Year Ended December 31,
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Location of Loss Reclassified from AOCL into Income
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
36

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

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 consolidated financial statements as of and for the year ended December 31, 2015 and 2014:
 
 
Significant Other Unobservable Inputs
December 31,
 
2015
 
2014
 
Level 2
 
Level 3
 
Total Losses
 
Level 2
 
Level 3
 
Total Losses
Recurring Fair Value Measure
 
 
 
 
 
 
 
 
 
 
 
       Interest rate cap contracts
$
239

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

       Contingent purchase price consideration for
       acquired businesses
$
—

 
$
1,059

 
$
—

 
$
—

 
$
1,768

 
$
—



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 December 31, 2015, 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 year ended December 31, 2015 and 2014:
 
Year Ended December 31, 2015
 
2015
 
2014
Beginning balance
$
1,768

 
$
—

     Additions related to acquisitions
—

 
2,110

     Payments
(555
)
 
(342
)
     Adjustments included in earnings
38

 
—

     Foreign currency translation adjustments
(192
)
 
—

Ending balance
$
1,059

 
$
1,768

Valuation and Qualifying Accounts (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Valuation and Qualifying Accounts [Abstract]
 
 
 
Allowance for accounts receivable
$ 340 
$ 546 
$ 636 
Valuation and Qualifying Accounts
Text Block 
 
 
Valuation and Qualifying Accounts 
Schedule II
ARC DOCUMENT SOLUTIONS, INC. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
(Dollars in thousands)
 
 
Balance at
Beginning
of Period
 
Charges to
Cost and
Expenses
 
Deductions
(1)
 
Balance at
End of
Period
Year ended December 31, 2015
 
 
 
 
 
 
 
Allowance for accounts receivable
$
2,413

 
$
340

 
$
(659
)
 
$
2,094

Year ended December 31, 2014
 
 
 
 
 
 
 
Allowance for accounts receivable
$
2,517

 
$
546

 
$
(650
)
 
$
2,413

Year ended December 31, 2013
 
 
 
 
 
 
 
Allowance for accounts receivable
$
2,634

 
$
636

 
$
(753
)
 
$
2,517

 
(1)
Deductions represent uncollectible accounts written-off net of recoveries.
Summary of Significant Accounting Policies (Policies)
Basis of Presentation 
Basis of Presentation
The accompanying Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the 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 Consolidated Financial Statements.
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.
Cash Equivalents 
Cash Equivalents
Cash equivalents include demand deposits and short-term investments with a maturity of three months or less when purchased.
The Company maintains its cash deposits at numerous banks located throughout the United States, Canada, India, Australia, the United Kingdom and China, which at times, may exceed federally insured limits. UDS, the Company’s operations in China, held $13.7 million of the Company’s cash and cash equivalents as of December 31, 2015. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risk on cash and cash equivalents.
Restricted Cash 
Restricted Cash
As of December 31, 2014, the Company had restricted cash of $1.4 million related to a government grant received by UNIS Document Solutions Co. Ltd., (“UDS”), the Company's joint-venture in China, which was included in other current assets. Restrictions on the cash were removed in 2015 upon approval by the governmental agency of project-based expenditures supporting technology investments made by UDS.
Concentrations of Credit Risk and Significant Vendors 
Concentrations of Credit Risk and Significant Vendors
Concentrations of credit risk with respect to trade receivables are limited due to a large, diverse customer base. No individual customer represented more than 4% of net sales during the years ended December 31, 2015, 2014 and 2013.
The Company has geographic concentration risk as sales in California, as a percent of total sales, were approximately 31%, 30% and 31% for the years ended December 31, 2015, 2014 and 2013, respectively.
The Company contracts with various suppliers. Although there are a limited number of suppliers that could supply the Company’s inventory, management believes any shortfalls from existing suppliers would be absorbed from other suppliers on comparable terms. However, a change in suppliers could cause a delay in sales and adversely affect results.
Allowance for Doubtful Accounts 
Allowance for Doubtful Accounts
The Company performs periodic credit evaluations of the financial condition of its customers, monitors collections and payments from customers, and generally does not require collateral. The Company provides for the possible inability to collect accounts receivable by recording an allowance for doubtful accounts. The Company writes off an account when it is considered uncollectible. The Company estimates the allowance for doubtful accounts based on historical experience, aging of accounts receivable, and information regarding the credit worthiness of its customers. Additionally, the Company provides an allowance for returns and discounts based on historical experience.
Inventories 
Inventories
Inventories are valued at the lower of cost (determined on a first-in, first-out basis; or average cost) or market. Inventories primarily consist of reprographics materials for use and resale, and equipment for resale. On an ongoing basis, inventories are reviewed and adjusted for estimated obsolescence or unmarketable inventories to reflect the lower of cost or market. Charges to increase inventory reserves are recorded as an increase in cost of sales. Estimated inventory obsolescence has been provided for in the financial statements and has been within the range of management’s expectations.
Income Taxes 
Income Taxes
Deferred tax assets and liabilities reflect temporary differences between the amount of assets and liabilities for financial and tax reporting purposes. Such amounts are adjusted, as appropriate, to reflect changes in tax rates expected to be in effect when the temporary differences reverse. A valuation allowance is recorded to reduce the Company's deferred tax assets to the amount that is more likely than not to be realized. Changes in tax laws or accounting standards and methods may affect recorded deferred taxes in future periods.

When establishing a valuation allowance, the Company considers future sources of taxable income such as future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards and tax planning strategies. A tax planning strategy is an action that: is prudent and feasible; an enterprise ordinarily might not take, but would take to prevent an operating loss or tax credit carryforward from expiring unused; and would result in realization of deferred tax assets. In the event the Company determines that its deferred tax assets, more likely than not, will not be realized in the future, the valuation adjustment to the deferred tax assets will be charged to earnings in the period in which the Company makes such a determination.
At September 30, 2015 as a result of sustained profitability in the U.S. evidenced by three years of earnings and forecasted continuing profitability (as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740-10, Income Taxes), the Company determined it was more likely than not future earnings would be sufficient to realize 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 $1.3 million valuation allowance against certain deferred tax assets as of December 31, 2015.
In future quarters the Company will continue to evaluate its historical results for the preceding twelve quarters and its future projections to determine whether the Company will generate sufficient taxable income to utilize its deferred tax assets, and whether a valuation allowance is required. Should the Company generate sufficient taxable income, however, a portion or all of the then current valuation allowance may be reversed.
The Company calculates its current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed returns are recorded when identified.

Income taxes have not been provided on certain undistributed earnings of foreign subsidiaries because such earnings are considered to be permanently reinvested.

The amount of taxable income or loss the Company reports to the various tax jurisdictions is subject to ongoing audits by federal, state and foreign tax authorities. The Company's estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. The Company uses a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company records a liability for the difference between the benefit recognized and measured and tax position taken or expected to be taken on its tax return. To the extent that the Company's assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The Company reports tax-related interest and penalties as a component of income tax expense.
The Company’s effective income tax rate differs from the statutory tax rate primarily due to the valuation allowance on certain of the Company’s deferred tax assets, state income taxes, stock-based compensation, goodwill and other identifiable intangibles, and other discrete items. See Note 9 “Income Taxes” for further information.
Income tax deficiencies and benefits affecting stockholders’ equity are primarily related to employee stock-based compensation.
Property and Equipment 
Property and Equipment
Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives, as follows:
 
Buildings
  
10-20 years
Leasehold improvements
  
10-20 years or lease term, if shorter
Machinery and equipment
  
3-7 years
Furniture and fixtures
  
3-7 years

Assets acquired under capital lease arrangements are included in machinery and equipment, are recorded at the present value of the minimum lease payments, and are depreciated using the straight-line method over the life of the asset or term of the lease, whichever is shorter. Expenses for repairs and maintenance are charged to expense as incurred, while renewals and betterments are capitalized. Gains or losses on the sale or disposal of property and equipment are reflected in operating income.

The Company accounts for software costs developed for internal use in accordance with ASC 350-40, Intangibles – Goodwill and Other, which requires companies to capitalize certain qualifying costs incurred during the application development stage of the related software development project. The primary use of this software is for internal use and, accordingly, such capitalized software development costs are depreciated on a straight-line basis over the economic lives of the related products not to exceed three years.
Impairment of Long-Lived Assets 
Impairment of 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.
Goodwill and Other Intangible Assets 
Goodwill and Other Intangible Assets
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.
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.
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.
Deferred Financing Costs 
Deferred Financing Costs
Direct costs incurred in connection with debt agreements are capitalized as incurred and amortized based on the effective interest method for the Company's borrowings under its term loan credit agreement ("Term A Credit Agreement"). At December 31, 2015 and 2014, the Company had deferred financing costs of $1.6 million and $2.4 million, respectively, net of accumulated amortization of $1.0 million and $0.1 million, respectively.
In 2014, the Company added $2.5 million of deferred financing costs related to its Term A Credit Agreement. In addition, the Company wrote off $2.4 million of deferred financing costs due to the extinguishment, in full, of its previous credit agreements.
Derivative Financial Instruments 
Derivative Financial Instruments
In January 2015, the Company entered into three 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.
As of and for the year ended December 31, 2014 the Company was not party to any derivative or hedging transactions.
Historically, the Company enters into derivative instruments to manage its exposure to changes in interest rates. These instruments allow the Company to raise funds at floating rates and effectively swap them into fixed rates, without the exchange of the underlying principal amount. Such agreements are designated and accounted for under ASC 815, Derivatives and Hedging. Derivative instruments are recorded at fair value as either assets or liabilities in the Consolidated Balance Sheets.
Fair Values of Financial Instruments 
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 Consolidated Balance Sheet were $6.3 million and $9.2 million as of December 31, 2015 and 2014, respectively, and are carried at cost and approximate fair value due to the relatively short period to maturity of these instruments.
Interest rate cap contracts: 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. Interest rate cap contracts reported in the Company's Consolidated Balance Sheet were $0.2 million as of December 31, 2015.

Contingent Liabilities: The Company recognizes liabilities for future earnout obligations on business acquisitions 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. Liabilities for future earnout obligations totaled $1.1 million as of December 31, 2015.
Short- and long-term debt: The carrying amount of the Company’s capital leases reported in the 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 Consolidated Balance Sheet as of December 31, 2015 for borrowings under its Term Loan Credit Agreement is $143.0 million. The Company has determined, utilizing observable market quotes, that the fair value of borrowings under its Term Loan Credit Agreement is $143.0 million, as of December 31, 2015.
Insurance Liability 
Insurance Liability
The Company maintains a high deductible insurance policy for a significant portion of its risks and associated liabilities with respect to workers’ compensation. The Company’s deductible is $250 thousand per individual. The accrued liabilities associated with this program are based on the Company’s estimate of the ultimate costs to settle known claims, as well as claims incurred but not yet reported to the Company, as of the balance sheet date. The Company’s estimated liability is not discounted and is based upon an actuarial report obtained from a third party. The actuarial report uses information provided by the Company’s insurance brokers and insurers, combined with the Company’s judgments regarding a number of assumptions and factors, including the frequency and severity of claims, claims development history, case jurisdiction, applicable legislation, and the Company’s claims settlement practices.
The Company is self-insured for healthcare benefits provided to approximately 35% of its employees, with a stop-loss at $250 thousand per individual. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. The Company’s results could be materially affected by claims and other expenses related to such plans if future occurrences and claims differ from these assumptions and historical trends. Other employees are covered by other offered healthcare benefits.
Commitments and Contingencies 
Commitments and Contingencies
In the normal course of business, the Company estimates potential future loss accruals related to legal, workers’ compensation, healthcare, tax and other contingencies. These accruals require management’s judgment on the outcome of various events based on the best available information. However, due to changes in facts and circumstances, the ultimate outcomes could differ from management’s estimates.
Revenue Recognition 
Revenue Recognition
The Company applies the provisions of ASC 605, Revenue Recognition. In general, the Company recognizes revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery of products has occurred or services have been rendered, (iii) the sales price charged is fixed or determinable and (iv) collection is reasonably assured. Net sales include an allowance for estimated sales returns and discounts.
The Company recognizes service revenue when services have been rendered, while revenues from the resale of equipment and supplies are recognized upon delivery to the customer or upon customer pickup. Revenue from equipment service agreements are recognized over the term of the service agreement.
The Company has established contractual pricing for certain large national customer accounts (“Global Solutions”). These contracts generally establish uniform pricing at all operating segments for Global Solutions. Revenues earned from the Company’s Global Solutions are recognized in the same manner as non-Global Solutions revenues.
Included in revenues are fees charged to customers for shipping, handling, and delivery services. Such revenues amounted to $11.2 million, $11.6 million, and $12.1 million for the years ended December 31, 2015, 2014 and 2013, respectively.
Revenues from hosted software licensing activities are recognized ratably over the term of the license. Revenues from software licensing activities comprise less than 1% of the Company’s consolidated revenues during the years ended December 31, 2015, 2014 and 2013.
Management provides for returns, discounts and allowances based on historic experience and adjusts such allowances as considered necessary. To date, such provisions have been within the range of management’s expectations.
Comprehensive Income (Loss) 
Comprehensive Income (Loss)
The Company’s comprehensive income (loss) includes foreign currency translation adjustments and the fair value adjustment of derivatives, net of taxes.
In January 2015, the Company entered into three 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.
Asset and liability accounts of international operations are translated into the Company’s functional currency, U.S. dollars, at current rates. Revenues and expenses are translated at the weighted-average currency rate for the fiscal year.
Segment and Geographic Reporting 
The Company recognizes revenues in geographic areas based on the location to which the product was shipped or services have been rendered. Operations outside the United States have been small but growing. See table below for revenues and long-lived assets, net, excluding intangible assets, attributable to the Company’s U.S. operations and foreign operations. 
Segment and Geographic Reporting
The provisions of ASC 280, Segment Reporting, 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, 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.
Advertising and Shipping and Handling Costs 
Advertising and Shipping and Handling Costs
Advertising costs are expensed as incurred and approximated $2.0 million, $1.7 million, and $1.4 million during the years ended December 31, 2015, 2014 and 2013, respectively. Shipping and handling costs incurred by the Company are included in cost of sales.
Stock-Based Compensation 
Stock-Based Compensation
The Company applies the Black-Scholes valuation model in determining the fair value of share-based payments to employees, which is then amortized on a straight-line basis over the requisite service period.
Research and Development Expenses 
Research and Development Expenses
Research and development activities relate to costs associated with the design and testing of new technology or enhancements and maintenance to existing technology. Such costs are expensed as incurred are primarily recorded to cost of sales.
Noncontrolling Interest 
Noncontrolling Interest
The Company accounted for its investment in UNIS Document Solutions Co. Ltd., (“UDS”) under the purchase method of accounting, in accordance with ASC 805, Business Combinations. UDS has been consolidated in the Company’s financial statements from the date of acquisition.
Sales Taxes 
Sales Taxes
The Company bills sales taxes, as applicable, to its customers. The Company acts as an agent and bills, collects, and remits the sales tax to the proper government jurisdiction. The sales taxes are accounted for on a net basis, and therefore are not included as part of the Company’s revenue.
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 are 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.
Recent Accounting Pronouncements 
Recent Accounting Pronouncements

On February 25, 2016, the FASB issued Accounting Standards Codification (“ASC”) 842 (“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 November 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The new guidance requires that deferred tax assets and liabilities be classified as noncurrent in a classified balance sheet in order to simplify the presentation of deferred income taxes. ASU 2015-17 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted and the update may be applied either prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company elected to early adopt ASU 2015-17 as of December 31, 2015 on a prospective basis.
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 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. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2015-05 on its 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. Early adoption is permitted. The Company expects to adopt ASU 2015-03 for the quarterly report on Form 10-Q for the three months ended March 31, 2016.
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 not permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements.
Summary of Significant Accounting Policies (Tables)
Schedule of Useful Lives of Property and Equipment 
Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives, as follows:
 
Buildings
  
10-20 years
Leasehold improvements
  
10-20 years or lease term, if shorter
Machinery and equipment
  
3-7 years
Furniture and fixtures
  
3-7 years
Schedule of Net Sales of Principle Services and Products 
Net sales of the Company’s principal services and products were as follows:
 
 
Year Ended December 31,
 
2015
 
2014
 
2013
Service Sales
 
 
 
 
 
CDIM
$
221,174

 
$
219,764

 
$
216,305

MPS
144,244

 
141,313

 
128,205

AIM
13,220

 
10,807

 
10,848

Total services sales
378,638

 
371,884

 
355,358

Equipment and Supplies Sales
50,027

 
51,872

 
51,837

Total net sales
$
428,665

 
$
423,756

 
$
407,195

 
Schedule of Segment and Geographic Reporting 
See table below for revenues and long-lived assets, net, excluding intangible assets, attributable to the Company’s U.S. operations and foreign operations. 
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
 
 
U.S.
 
Foreign
Countries
 
Total
 
U.S.
 
Foreign
Countries
 
Total
 
U.S.
 
Foreign
Countries
 
Total
Revenues from external customers
 
$
366,082

 
$
62,583

 
$
428,665

 
$
364,382

 
$
59,374

 
$
423,756

 
$
354,995

 
$
52,200

 
$
407,195

Long-lived assets, net, excluding intangible assets
 
$
50,777

 
$
6,813

 
$
57,590

 
$
51,826

 
$
7,694

 
$
59,520

 
$
48,319

 
$
7,862

 
$
56,181

Schedule of Weighted Average Assumptions for Stock-Based Compensation 
The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model using the following weighted average assumptions for the years ended December 31, 2015 and 2014 and 2013: 
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
Weighted average assumptions used:
 
 
 
 
 
 
Risk free interest rate
 
1.62
%
 
2.12
%
 
1.36
%
Expected volatility
 
56.2
%
 
57.3
%
 
59.7
%
Expected dividend yield
 
—
%
 
—
%
 
—
%
Schedule of Basic and Diluted Earnings Per Share 
Basic and diluted weighted average common shares outstanding were calculated as follows for the years ended December 31, 2015, 2014 and 2013:
 
 
Year Ended December 31,
 
2015
 
2014
 
2013
Weighted average common shares outstanding during the period — basic
46,631

 
46,245

 
45,856

Effect of dilutive stock options
901

 
843

 
—

Weighted average common shares outstanding during the period — diluted
47,532

 
47,088

 
45,856

Restructuring Expenses (Tables)
Schedule of Restructuring Expenses 
The following table summarizes restructuring expenses incurred in 2015, 2014 and 2013:
 
 
Year Ended December 31,
 
2015
 
2014
 
2013
Employee termination costs
$
—

 
$
—

 
$
15

Estimated lease termination and obligation costs
89

 
554

 
1,803

Other restructuring expenses
—

 
223

 
726

Total restructuring expenses
$
89

 
$
777

 
$
2,544

Schedule of Restructuring Liability 
The changes in the restructuring liability from December 31, 2013 through December 31, 2015 are summarized as follows:
 
 
 
Balance, December 31, 2013
$
539

Restructuring expenses
777

Payments
(1,203
)
Balance, December 31, 2014
$
113

Restructuring expenses
89

Payments
(165
)
Balance, December 31, 2015
$
37

Goodwill and Other Intangibles Resulting from Business Acquisitions (Tables)
Schedule of Changes in Carrying Amount of Goodwill 
There was no change in the carrying amount of goodwill from January 1, 2014 through December 31, 2015.
Schedule of Other Intangible Assets Resulting from Business Acquisitions 
The following table sets forth the Company’s other intangible assets resulting from business acquisitions as of December 31, 2015 and December 31, 2014 which continue to be amortized:
 
 
December 31, 2015
 
December 31, 2014
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Amortizable other intangible assets
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
$
99,050

 
$
81,572

 
$
17,478

 
$
99,606

 
$
76,298

 
$
23,308

Trade names and trademarks
20,329

 
19,861

 
468

 
20,370

 
19,837

 
533

 
$
119,379

 
$
101,433

 
$
17,946

 
$
119,976

 
$
96,135

 
$
23,841

Schedule of Estimated Future Amortization Expense 
Based on current information, estimated future amortization expense of other intangible assets for each of the next five fiscal years and thereafter are as follows:
 
2016
$
4,793

2017
4,238

2018
3,829

2019
3,112

2020
1,505

Thereafter
469

 
$
17,946

Property and Equipment (Tables)
Schedule of Property and Equipment
Property and equipment consist of the following:
 
December 31,
 
2015
 
2014
Machinery and equipment
$
241,125

 
$
254,206

Buildings and leasehold improvements
15,833

 
16,399

Furniture and fixtures
3,089

 
3,612

 
260,047

 
274,217

Less accumulated depreciation
(202,457
)
 
(214,697
)
 
$
57,590

 
$
59,520

Long-Term Debt (Tables)
Schedule of Long-Term Debt 
Long-term debt consists of the following:
 
 
December 31,
 
2015
 
2014
Term A loan facility maturing 2019; 2.50% and 2.74% interest rate at December 31, 2015 and December 31, 2014
$
143,000

 
$
173,000

Various capital leases; weighted average interest rate of 5.8% and 6.8% at December 31, 2015 and December 31, 2014; principal and interest payable monthly through November 2020
29,866

 
28,789

Borrowings from foreign revolving credit facilities; 0.6% interest rate at December 31, 2014
—

 
1,897

Various other notes payable with a weighted average interest rate of 8.5% and 6.5% at December 31, 2015 and December 31, 2014; principal and interest payable monthly through November 2019
112

 
199

 
172,978

 
203,885

Less current portion
(14,374
)
 
(27,969
)
 
$
158,604

 
$
175,916

Schedule of Minimum Future Maturities of Long-term Debt And Capital Lease Obligations 
Minimum future maturities of long-term debt and capital lease obligations as of December 31, 2015 are as follows:
 
 
Long-Term Debt
 
Capital Lease Obligations
Year ending December 31:
 
 
 
2016
$
3,112

 
$
11,262

2017
17,500

 
9,164

2018
17,500

 
6,307

2019
105,000

 
2,595

2020
—

 
538

Thereafter
—

 
—

 
$
143,112

 
$
29,866

Commitments and Contingencies (Tables)
Schedule of Future Minimum Lease Payments
The following is a schedule of the Company’s future minimum lease payments as of December 31, 2015:
 
 
 
Third Party
 
Related Party
 
Total
Year ending December 31:
 
 
 
 
 
 
2016
 
$
15,565

 
$
504

 
$
16,069

2017
 
11,267

 
504

 
11,771

2018
 
7,160

 
504

 
7,664

2019
 
3,992

 
514

 
4,506

2020
 
2,831

 
514

 
3,345

Thereafter
 
2,826

 
1,542

 
4,368

 
 
$
43,641

 
$
4,082

 
$
47,723

Income Taxes (Tables)
Schedule of Income Tax Provision 
The following table includes the consolidated income tax provision for federal, state, and foreign income taxes related to the Company’s total earnings before taxes for 2015, 2014 and 2013:
 
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
Current:
 
 
 
 
 
 
Federal
 
$
219

 
$
—

 
$
—

State
 
364

 
86

 
264

Foreign
 
481

 
392

 
354

 
 
1,064

 
478

 
618

Deferred:
 
 
 
 
 
 
Federal
 
(56,750
)
 
1,453

 
1,898

State
 
(13,705
)
 
343

 
869

Foreign
 
(41
)
 
74

 
(399
)
 
 
(70,496
)
 
1,870

 
2,368

Income tax (benefit) provision
 
$
(69,432
)
 
$
2,348

 
$
2,986

Schedule of Deferred Tax Assets and Liabilities 
The consolidated deferred tax assets and liabilities consist of the following:
 
 
December 31,
 
2015
 
2014
Deferred tax assets:
 
 
 
Financial statement accruals not currently deductible
$
3,409

 
$
3,661

Accrued vacation
1,215

 
914

Deferred revenue
280

 
420

State taxes
116

 
62

Fixed assets
7,647

 
8,004

Goodwill and other identifiable intangibles
20,828

 
25,079

Stock-based compensation
5,562

 
5,098

Federal tax net operating loss carryforward
29,089

 
33,005

State tax net operating loss carryforward, net
5,096

 
5,179

State tax credits, net
1,002

 
994

Foreign tax credit carryforward
517

 
506

Foreign tax net operating loss carryforward
380

 
455

Federal alternative minimum tax
222

 
—

Interest rate hedge
140

 
—

Gross deferred tax assets
75,503

 
83,377

Less: valuation allowance
(1,307
)
 
(81,989
)
Net deferred tax assets
74,196

 
1,388

 
 
 
 
Deferred tax liabilities:
 
 
 
Goodwill and other identifiable intangibles
$
(35,933
)
 
$
(33,463
)
Net deferred tax assets (liabilities)
$
38,263

 
$
(32,075
)
Schedule of Effective Income Tax Rate Reconciliation 
A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
 
 
Year Ended December 31,
 
2015
 
2014
 
2013
Statutory federal income tax rate
35
 %
 
35
%
 
35
 %
State taxes, net of federal benefit
5

 
4

 
3

Foreign taxes
—

 
1

 
4

Valuation allowance
(289
)
 
(36
)
 
(63
)
Non-deductible expenses and other
1

 
3

 
(1
)
Section 162(m) limitation
1

 
4

 
(2
)
Stock-based compensation
—

 
16

 
(8
)
Discrete item for state taxes
(1
)
 
(4
)
 
8

Discrete items for other
—

 
1

 
(2
)
Effective income tax rate
(248
)%
 
24
%
 
(26
)%
Schedule of Unrecognized Tax Benefits Roll Forward 
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
 
 
2014
 
2013
Beginning balance at January 1,
 
$
266

 
$
266

Additions based on tax positions related to the current year
 
—

 
—

Reductions based on tax positions related to the prior year
 
(266
)
 
—

Reductions for tax positions due to expiration of statute of limitations
 
—

 
—

Ending balance at December 31,
 
$
—

 
$
266

Employee Stock Purchase Plan and Stock Plan (Tables)
Schedule of Employee Share Purchases 
Employees purchased the following shares in the periods presented:
 
 
Year Ended December 31,
 
2015
 
2014
 
2013
Shares purchased
21

 
13

 
6

Average price per share
$
5.40

 
$
6.24

 
$
4.90

Schedule of Stock Option Plan Activity 
The following is a further breakdown of the stock option activity under the Stock Plan:
 
 
Year Ended December 31, 2015
 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Contractual
Life
(In years)
 
Aggregate
Intrinsic
Value
(In thousands)
Outstanding at December 31, 2013
3,613

 
$
5.57

 
 
 
 
Granted
579

 
$
6.25

 
 
 
 
Exercised
(223
)
 
$
5.53

 
 
 
 
Forfeited/Cancelled
(288
)
 
$
7.86

 
 
 
 
Outstanding at December 31, 2014
3,681

 
$
5.50

 
 
 
 
Granted
526

 
$
8.91

 
 
 
 
Exercised
(154
)
 
$
4.36

 
 
 
 
Forfeited/Cancelled
(100
)
 
$
11.76

 
 
 
 
Outstanding at December 31, 2015
3,953

 
$
5.84

 
6.55
 
$
2,441

Vested or expected to vest at December 31, 2015
3,918

 
$
5.83

 
6.53
 
$
2,436

Exercisable at December 31, 2015
2,570

 
$
5.80

 
5.64
 
$
1,558

Schedule of Non-vested Stock Options 

A summary of the Company’s non-vested stock options as of December 31, 2015, and changes during the fiscal year then ended is as follows:
 
 
 
Weighted
Average Grant Date
Non-vested Options
Shares
 
Fair Market Value
Non-vested at December 31, 2014
1,803

 
$
2.43

Granted
526

 
$
4.88

Vested
(898
)
 
$
4.13

Forfeited/Cancelled
(48
)
 
$
6.40

Non-vested at December 31, 2015
1,383

 
$
5.92

The follow
Schedule of Range of Exercise Price for Options Outstanding 
The following table summarizes certain information concerning outstanding options at December 31, 2015:
 
 
 
Range of Exercise Price
Options Outstanding at
December 31, 2015
$2.37 – $3.99
1,396

$5.37 – $7.19
1,070

$8.20 – $9.09
1,467

$35.42
20

$2.37 – $35.42
3,953

Schedule of Nonvested Restricted Stock Options 
A summary of the Company’s non-vested restricted stock as of December 31, 2015, and changes during the fiscal year then ended is as follows:
 
 
 
Weighted
Average Grant Date
Non-vested Restricted Stock
Shares
 
Fair Market Value
Non-vested at December 31, 2014
290

 
$
7.57

Granted
158

 
$
8.95

Vested
(179
)
 
$
7.67

Forfeited/Cancelled
(3
)
 
$
8.77

Non-vested at December 31, 2015
266

 
$
8.31

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 Consolidated Balance Sheets of the Company's derivatives as of December 31, 2015:

 
 
 
 
 
 
 
 
Fair Value
 
 
Balance Sheet Classification
 
December 31, 2015
 
Derivative designated as hedging instrument under ASC 815
 
 
 
 
Interest rate cap contracts - current portion
Other current assets
 
$
48

 
Interest rate cap contracts - long-term portion
Other assets
 
191

 
Total derivatives designated as hedging instruments
 
 
$
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 year ended December 31, 2015, 2014 and 2013:

 
 
 
 
 
 
 
Amount of Loss Recognized in AOCL on Derivative
 
Year Ended December 31,
 
2015
 
2014
 
2013
Derivative in ASC 815 Cash Flow Hedging Relationship
 
 
 
 
 
Interest rate cap contracts, net of tax
$
(211
)
 
$
—

 
$
—

Schedule of the Effect of the Amended Swap Transaction on the Consolidated Statements of Operations 
The following table summarizes the effect of the interest rate cap on the Consolidated Statements of Operations for the year ended December 31, 2015, 2014 and 2013:
 
 
Amount of Gain or (Loss)
Reclassified from AOCL into Income
 
Amount of Gain or (Loss)
Recognized in Income
 
(effective portion)
 
(ineffective portion)
 
Year Ended December 31,
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Location of Loss Reclassified from AOCL into Income
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
36

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Fair Value Measurements (Tables)
Schedule of Fair Value Of Assets And Liabilities Measured on a Nonrecurring Basis 
The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the consolidated financial statements as of and for the year ended December 31, 2015 and 2014:
 
 
Significant Other Unobservable Inputs
December 31,
 
2015
 
2014
 
Level 2
 
Level 3
 
Total Losses
 
Level 2
 
Level 3
 
Total Losses
Recurring Fair Value Measure
 
 
 
 
 
 
 
 
 
 
 
       Interest rate cap contracts
$
239

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

       Contingent purchase price consideration for
       acquired businesses
$
—

 
$
1,059

 
$
—

 
$
—

 
$
1,768

 
$
—

Schedule Presents the Change In the Level 3 Contingent Purchase Price Consideration Liability 
The following table presents the change in the Level 3 contingent purchase price consideration liability for the year ended December 31, 2015 and 2014:
 
Year Ended December 31, 2015
 
2015
 
2014
Beginning balance
$
1,768

 
$
—

     Additions related to acquisitions
—

 
2,110

     Payments
(555
)
 
(342
)
     Adjustments included in earnings
38

 
—

     Foreign currency translation adjustments
(192
)
 
—

Ending balance
$
1,059

 
$
1,768

Summary of Significant Accounting Policies (Schedule of Useful Lives of Property and Equipment) (Details)
12 Months Ended
Dec. 31, 2015
Minimum [Member] |
Building [Member]
 
Property and equipment
 
Estimated Useful Lives
10 years 
Minimum [Member] |
Leasehold Improvements [Member]
 
Property and equipment
 
Estimated Useful Lives
10 years 
Minimum [Member] |
Machinery and Equipment [Member]
 
Property and equipment
 
Estimated Useful Lives
3 years 
Minimum [Member] |
Furniture and Fixtures [Member]
 
Property and equipment
 
Estimated Useful Lives
3 years 
Maximum [Member] |
Building [Member]
 
Property and equipment
 
Estimated Useful Lives
20 years 
Maximum [Member] |
Leasehold Improvements [Member]
 
Property and equipment
 
Estimated Useful Lives
20 years 
Maximum [Member] |
Machinery and Equipment [Member]
 
Property and equipment
 
Estimated Useful Lives
7 years 
Maximum [Member] |
Furniture and Fixtures [Member]
 
Property and equipment
 
Estimated Useful Lives
7 years 
Summary of Significant Accounting Policies (Schedule of Net Sales of Principle Services and Products) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Service sales:
 
 
 
Service Sales
$ 378,638 
$ 371,884 
$ 355,358 
Equipment and Supplies Sales
50,027 
51,872 
51,837 
Total net sales
428,665 
423,756 
407,195 
CDIM [Member]
 
 
 
Service sales:
 
 
 
Service Sales
221,174 
219,764 
216,305 
MPS [Member]
 
 
 
Service sales:
 
 
 
Service Sales
144,244 
141,313 
128,205 
AIM [Member]
 
 
 
Service sales:
 
 
 
Service Sales
$ 13,220 
$ 10,807 
$ 10,848 
Summary of Significant Accounting Policies (Schedule of Segment and Geographic Reporting) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Segment and Geographic Reporting
 
 
 
Revenues from external customers
$ 428,665 
$ 423,756 
$ 407,195 
Long-lived assets, net, excluding intangible assets
57,590 
59,520 
56,181 
US [Member]
 
 
 
Segment and Geographic Reporting
 
 
 
Revenues from external customers
366,082 
364,382 
354,995 
Long-lived assets, net, excluding intangible assets
50,777 
51,826 
48,319 
Foreign Countries [Member]
 
 
 
Segment and Geographic Reporting
 
 
 
Revenues from external customers
62,583 
59,374 
52,200 
Long-lived assets, net, excluding intangible assets
$ 6,813 
$ 7,694 
$ 7,862 
Summary of Significant Accounting Policies (Schedule of Weighted Average Assumptions for Stock-Based Compensation) (Details)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Weighted average assumptions used:
 
 
 
Risk free interest rate
1.62% 
2.12% 
1.36% 
Expected volatility
56.20% 
57.30% 
59.70% 
Expected dividend yield
0.00% 
0.00% 
0.00% 
Summary of Significant Accounting Policies (Schedule of Basic and Diluted Earnings Per Share) (Details)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Basic and diluted earnings per share
 
 
 
Weighted average common shares outstanding during the period — basic
46,631 
46,245 
45,856 
Effect of dilutive stock options
901 
843 
0 
Weighted average common shares outstanding during the period — diluted
47,532 
47,088 
45,856 
Summary of Significant Accounting Policies (Narrative) (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
contract
Dec. 31, 2014
Dec. 31, 2013
Sep. 30, 2015
contract
Jan. 31, 2015
contract
Dec. 31, 2012
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Cash and cash equivalents
$ 23,963,000 
$ 22,636,000 
$ 27,362,000 
 
 
$ 28,021,000 
Restricted cash
 
1,400,000 
 
 
 
 
Company recorded expenses
340,000 
546,000 
636,000 
 
 
 
Reserves for inventory obsolescence
(900,000)
(900,000)
 
 
 
 
Valuation allowance, Non-cash
80,669,000 
3,552,000 
(7,277,000)
 
 
 
Valuation allowance
1,307,000 
81,989,000 
 
 
 
 
Capitalized software development costs
600,000 
100,000 
 
 
 
 
Net of accumulated amortization
17,700,000 
17,500,000 
 
 
 
 
Depreciation expense and amortization of capitalized software development costs
200,000 
200,000 
300,000 
 
 
 
Impairment of long-lived assets
0 
0 
0 
 
 
 
Deferred financing fees
1,600,000 
2,400,000 
 
 
 
 
Accumulated amortization
1,000,000 
100,000 
 
 
 
 
Deferred financing fees related to credit Agreement
 
2,500,000 
 
 
 
 
Wrote off deferred financing fees
 
2,400,000 
 
 
 
 
Derivative, Number of Instruments Held
3 
 
 
3 
3 
 
Maturity life
three months or less 
 
 
 
 
 
Cash equivalents
6,300,000 
9,200,000 
 
 
 
 
Carrying amount of notes
143,000,000 
 
 
 
 
 
Fair value of notes
143,000,000 
 
 
 
 
 
Deductible insurance policy
250,000 
 
 
 
 
 
Self-insured for healthcare benefits
250,000 
 
 
 
 
 
Revenues of fees charged to customers for shipping, handling, and delivery services
11,200,000 
11,600,000 
12,100,000 
 
 
 
Percentage of software licensing activities and membership
1.00% 
1.00% 
1.00% 
 
 
 
Advertising costs
2,000,000 
1,700,000 
1,400,000 
 
 
 
Total stock-based compensation
3,512,000 
3,802,000 
3,207,000 
 
 
 
Weighted average fair value of option (in dollars per share)
$ 4.88 
$ 3.69 
$ 1.57 
 
 
 
Expected term of stock options granted
6 years 5 months 
7 years 1 month 
7 years 0 months 
 
 
 
Forfeiture rate assumed
4.00% 
3.00% 
3.00% 
 
 
 
Total unrecognized stock-based compensation
3,800,000 
 
 
 
 
 
Expected weighted-average period to recognize compensation cost
2 years 0 months 
 
 
 
 
 
Research and development
5,800,000 
6,300,000 
5,500,000 
 
 
 
Noncontrolling interest
35.00% 
 
 
 
 
 
Common stock options excluded for anti-dilutive (in shares)
2.0 
1.5 
2.1 
 
 
 
Customer relationships [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Estimated useful lives of other intangible assets
13 years 
 
 
 
 
 
Software [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Estimated useful lives of other intangible assets
3 years 
 
 
 
 
 
Supplier Concentration Risk [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Geographic concentration risk sales in California
37.00% 
33.00% 
36.00% 
 
 
 
Sales Revenue, Net [Member] |
Customer Concentration Risk [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Concentration Risk, Number of Customer
0 
0 
0 
 
 
 
Geographic concentration risk sales in California
4.00% 
4.00% 
4.00% 
 
 
 
Sales Revenue, Net [Member] |
Geographic Concentration Risk [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Geographic concentration risk sales in California
31.00% 
30.00% 
31.00% 
 
 
 
UDS [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Cash and cash equivalents
13,700,000 
 
 
 
 
 
Interest Rate Cap [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Interest rate cap contracts
0 
0 
 
 
 
 
Interest Rate Cap [Member] |
Designated as Hedging Instrument [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
80,000,000 
 
Interest rate cap contracts
239,000 
 
 
 
 
 
Interest Rate Cap 2 [Member] |
Designated as Hedging Instrument [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
65,000,000 
 
Interest Rate Cap 3 [Member] |
Designated as Hedging Instrument [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
50,000,000 
 
Fair Value, Inputs, Level 3 [Member] |
Interest Rate Cap [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Interest rate cap contracts
0 
0 
 
 
 
 
Contingent Consideration [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Contingent purchase price consideration for acquired businesses
0 
0 
 
 
 
 
Contingent Consideration [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
Summary of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
Additions related to acquisitions
0 
2,110,000 
 
 
 
 
Contingent purchase price consideration for acquired businesses
$ 1,059,000 
$ 1,768,000 
$ 0 
 
 
 
Restructuring Expenses (Narrative) (Detail) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Head_Count
Location
Dec. 31, 2013
Location
Dec. 31, 2012
Location
Dec. 31, 2015
Restructuring and Related Activities [Abstract]
 
 
 
 
Restructuring Plan, Number Of Branch Location Closed
56 
 
 
 
Percentage of service locations closed
 
25.00% 
 
 
Headcount reduction of full-time employees
300 
 
 
 
Percentage of headcount reduction in full-time employees
10.00% 
 
 
 
Restructuring and Related Cost, Cost Incurred to Date
 
 
 
$ 6.7 
Restructuring plan includes closure Company's service centers
 
23 
33 
 
Restructuring Expenses (Schedule of Restructuring Expenses) (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Restructuring Cost and Reserve [Line Items]
 
 
 
Total restructuring expenses
$ 89 
$ 777 
$ 2,544 
Employee Termination Costs [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total restructuring expenses
0 
0 
15 
Estimated Lease Termination and Obligation Costs [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total restructuring expenses
89 
554 
1,803 
Other Restructuring Expenses [Member]
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Total restructuring expenses
$ 0 
$ 223 
$ 726 
Restructuring Expenses (Schedule of Restructuring Liability) (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Restructuring Reserve [Roll Forward]
 
 
 
Beginning Balance
$ 113 
$ 539 
 
Restructuring expenses
89 
777 
2,544 
Payments
(165)
(1,203)
 
Ending Balance
$ 37 
$ 113 
$ 539 
Acquisitions (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
business
Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Number of businesses acquired
 
5 
 
Liabilities in connection with the acquisition of businesses
$ 0 
$ 1,768,000 
$ 0 
Earnout payments
 
300,000 
 
Customer Relationships [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Liabilities in connection with the acquisition of businesses
 
2,100,000 
 
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 3 [Member]
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements
600,000 
342,000 
 
Additions related to acquisitions
0 
2,110,000 
 
Contingent purchase price consideration for acquired businesses
$ 1,059,000 
$ 1,768,000 
$ 0 
Goodwill and Other Intangibles Resulting from Business Acquisitions (Schedule of Other Intangible Assets Resulting from Business Acquisitions) (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
$ 119,379 
$ 119,976 
Accumulated Amortization
101,433 
96,135 
Net Carrying Amount
17,946 
23,841 
Customer Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
99,050 
99,606 
Accumulated Amortization
81,572 
76,298 
Net Carrying Amount
17,478 
23,308 
Trade Names and Trademarks [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
20,329 
20,370 
Accumulated Amortization
19,861 
19,837 
Net Carrying Amount
$ 468 
$ 533 
Goodwill and Other Intangibles Resulting from Business Acquisitions (Schedule of Estimated Future Amortization Expense) (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
2016
$ 4,793 
 
2016
4,238 
 
2017
3,829 
 
2018
3,112 
 
2019
1,505 
 
Thereafter
469 
 
Net Carrying Amount
$ 17,946 
$ 23,841 
Goodwill and Other Intangibles Resulting from Business Acquisitions (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Liabilities in connection with the acquisition of businesses
$ 0 
$ 1,768 
$ 0 
Customer Relationships [Member]
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Estimated period for amortization
13 years 
 
 
Liabilities in connection with the acquisition of businesses
 
$ 2,100 
 
Property and Equipment (Schedule of Property and Equipment) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Property and Equipment
 
 
Machinery and equipment
$ 241,125 
$ 254,206 
Buildings and leasehold improvements
15,833 
16,399 
Furniture and fixtures
3,089 
3,612 
Property and Equipment Gross Total
260,047 
274,217 
Less accumulated depreciation
(202,457)
(214,697)
Property and Equipment Total
$ 57,590 
$ 59,520 
Property and Equipment (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment [Abstract]
 
 
 
Depreciation
$ 28,019 
$ 28,148 
$ 28,133 
Long-Term Debt (Schedule of Long-Term Debt) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Debt Instrument [Line Items]
 
 
Long-term Debt and Capital Lease Obligations, Including Current Maturities
$ 172,978 
$ 203,885 
Less current portion
(14,374)
(27,969)
Long-term debt and capital leases
158,604 
175,916 
Line of Credit [Member] |
Term A Loan Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
143,000 
173,000 
Debt Instrument, Interest Rate, Effective Percentage
2.50% 
2.74% 
Capital Lease Obligations [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
29,866 
 
Capital Lease Obligations
29,866 
28,789 
Long-term Debt, Weighted Average Interest Rate
5.80% 
6.80% 
Foreign Line of Credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
0 
1,897 
Line of Credit Facility, Interest Rate at Period End
 
0.60% 
Notes Payable, Other Payables [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 112 
$ 199 
Long-term Debt, Weighted Average Interest Rate
8.50% 
6.50% 
Long-Term Debt (Narrative) (Detail) (USD $)
3 Months Ended 12 Months Ended 0 Months Ended 6 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended
Sep. 30, 2014
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 1, 2010
Senior Notes [Member]
Dec. 31, 2013
Senior Notes [Member]
Dec. 31, 2013
Senior Notes [Member]
Dec. 1, 2010
Senior Notes [Member]
Dec. 31, 2015
Term A Loan Facility [Member]
Line of Credit [Member]
Nov. 20, 2014
Term A Loan Facility [Member]
Line of Credit [Member]
Dec. 31, 2015
Revolving Credit Facility [Member]
Term A Loan Facility [Member]
Letter of Credit [Member]
Dec. 31, 2015
Revolving Credit Facility [Member]
Term A Loan Facility [Member]
Line of Credit [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Term A Loan Facility [Member]
Line of Credit [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Term A Loan Facility Agreement [Member]
Line of Credit [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Term A Loan Facility Agreement [Member]
Line of Credit [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Term A Loan Facility Agreement [Member]
Line of Credit [Member]
Fiscal Quarter, Through September 30, 2016 [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Term A Loan Facility Agreement [Member]
Line of Credit [Member]
London Interbank Offered Rate (LIBOR) [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Term A Loan Facility Agreement [Member]
Line of Credit [Member]
London Interbank Offered Rate (LIBOR) [Member]
Minimum [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Term A Loan Facility Agreement [Member]
Line of Credit [Member]
London Interbank Offered Rate (LIBOR) [Member]
Maximum [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Term A Loan Facility Agreement [Member]
Line of Credit [Member]
Federal Funds Effective Swap Rate [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Term A Loan Facility Agreement [Member]
Line of Credit [Member]
Prime Rate [Member]
Minimum [Member]
Nov. 20, 2014
Revolving Credit Facility [Member]
Term A Loan Facility Agreement [Member]
Line of Credit [Member]
Prime Rate [Member]
Maximum [Member]
Dec. 31, 2014
Revolving Credit Facility [Member]
Term B Loan Facility [Member]
Line of Credit [Member]
Dec. 20, 2013
Revolving Credit Facility [Member]
Term B Loan Facility [Member]
Line of Credit [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Agreement Terms, Amount That Can be Requested as Incremental Commitments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 75,000,000 
 
 
 
 
 
 
 
 
 
Outstanding debt
 
 
 
 
 
 
 
 
 
 
 
28,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
1.50% 
2.50% 
0.50% 
0.50% 
1.50% 
 
 
Total leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
3.00 
 
3.25 
 
 
 
 
 
 
 
 
Debt Instrument, Covenant Terms, Fixed Charged Coverage Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25 
 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Amount Excluded From Coverage Ratio
 
15,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of Lines of Credit
 
 
 
 
 
 
 
 
32,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan, maximum borrowing capacity
 
 
 
 
 
 
 
 
175,000,000 
175,000,000 
 
30,000,000 
30,000,000 
 
 
 
 
 
 
 
 
 
 
200,000,000 
Line of Credit Facility, Fair Value of Amount Outstanding
 
 
 
 
 
 
 
 
 
 
1,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Early extinguishment of long-term debt
 
14,500,000 
194,500,000 
200,000,000 
 
 
 
 
15,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on early extinguishment of debt
 
282,000 
5,599,000 
16,339,000 
 
 
16,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,600,000 
 
Interest rate on senior unsecured notes
 
 
 
 
 
 
 
10.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior secured due date
 
 
 
 
2016 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exchange aggregate principal amount of the Notes
 
 
 
 
 
$ 12,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Term
12 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt (Schedule of Minimum Future Maturities of Long-term Debt And Capital Lease Obligations) (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Long-Term Debt [Member]
 
Minimum future maturities of long-term debt and capital lease obligations
 
2016
$ 3,112 
2017
17,500 
2018
17,500 
2019
105,000 
2020
0 
Thereafter
0 
Total
143,112 
Capital Lease Obligations [Member]
 
Minimum future maturities of long-term debt and capital lease obligations
 
2016
11,262 
2017
9,164 
2018
6,307 
2019
2,595 
2020
538 
Thereafter
0 
Total
$ 29,866 
Commitments and Contingencies (Schedule of Future Minimum Lease Payments) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Operating Leased Assets [Line Items]
 
2016
$ 16,069 
2017
11,771 
2018
7,664 
2019
4,506 
2020
3,345 
Thereafter
4,368 
Future minimum lease payments, Total
47,723 
Third Party [Member]
 
Operating Leased Assets [Line Items]
 
2016
15,565 
2017
11,267 
2018
7,160 
2019
3,992 
2020
2,831 
Thereafter
2,826 
Future minimum lease payments, Total
43,641 
Executive Officer [Member]
 
Operating Leased Assets [Line Items]
 
2016
504 
2017
504 
2018
504 
2019
514 
2020
514 
Thereafter
1,542 
Future minimum lease payments, Total
$ 4,082 
Commitments and Contingencies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Commitments and Contingencies (Textual) [Abstract]
 
 
 
 
Rental expense
 
$ 24.0 
$ 23.4 
$ 24.1 
Loss on accrued liability
 
0.9 
 
 
Payments for Legal Settlements
1.0 
 
 
 
Related Party [Member]
 
 
 
 
Commitments and Contingencies (Textual) [Abstract]
 
 
 
 
Rental expense
 
$ 0.5 
$ 0.5 
$ 0.9 
Income Taxes (Schedule of Income Tax Provision) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Current:
 
 
 
Federal
$ 219 
$ 0 
$ 0 
State
364 
86 
264 
Foreign
481 
392 
354 
Current Income Tax, Total
1,064 
478 
618 
Deferred:
 
 
 
Federal
(56,750)
1,453 
1,898 
State
(13,705)
343 
869 
Foreign
(41)
74 
(399)
Deferred Income Tax, Total
(70,496)
1,870 
2,368 
Income tax provision (benefit)
$ (69,432)
$ 2,348 
$ 2,986 
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Deferred tax assets:
 
 
Financial statement accruals not currently deductible
$ 3,409 
$ 3,661 
Accrued vacation
1,215 
914 
Deferred revenue
280 
420 
State taxes
116 
62 
Fixed assets
7,647 
8,004 
Goodwill and other identifiable intangibles
20,828 
25,079 
Stock-based compensation
5,562 
5,098 
Federal tax net operating loss carryforward
29,089 
33,005 
State tax net operating loss carryforward, net
5,096 
5,179 
State tax credits, net
1,002 
994 
Foreign tax credit carryforward
517 
506 
Foreign tax net operating loss carryforward
380 
455 
Federal alternative minimum tax
222 
0 
Interest rate hedge
140 
0 
Gross deferred tax assets
75,503 
83,377 
Less: valuation allowance
(1,307)
(81,989)
Net deferred tax assets
74,196 
1,388 
Deferred tax liabilities:
 
 
Goodwill and other identifiable intangibles
(35,933)
(33,463)
Net deferred tax assets (liabilities)
38,263 
 
Net deferred tax assets (liabilities)
 
$ (32,075)
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Reconciliation of the statutory federal income tax rate
 
 
 
Statutory federal income tax rate
35.00% 
35.00% 
35.00% 
State taxes, net of federal benefit
5.00% 
4.00% 
3.00% 
Foreign taxes
0.00% 
1.00% 
4.00% 
Valuation allowance
(289.00%)
(36.00%)
(63.00%)
Non-deductible expenses and other
1.00% 
3.00% 
(1.00%)
Section 162(m) limitation
1.00% 
4.00% 
(2.00%)
Stock-based compensation
0.00% 
16.00% 
(8.00%)
Discrete item for state taxes
(1.00%)
(4.00%)
8.00% 
Discrete items for other
0.00% 
1.00% 
(2.00%)
Effective income tax rate
(248.00%)
24.00% 
(26.00%)
Income Taxes (Schedule of Unrecognized Tax Benefits Roll Forward) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Reconciliation of the beginning and ending amount of unrecognized tax
 
 
 
Beginning balance at January 1,
$ 266 
$ 266 
$ 0 
Additions based on tax positions related to the current year
0 
0 
 
Reductions based on tax positions related to the prior year
(266)
0 
 
Reductions for tax positions due to expiration of statute of limitations
0 
0 
 
Ending balance at December 31,
$ 0 
$ 266 
$ 0 
Income Taxes (Narrative) (Detail) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Dec. 31, 2012
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Foreign earnings (losses) before taxes
$ 1,100,000 
$ 300,000 
$ 2,300,000 
 
 
Valuation allowance, Non-cash
80,669,000 
3,552,000 
(7,277,000)
 
 
Valuation allowance
1,307,000 
81,989,000 
 
 
 
Charitable Contribution Carryforward Beginning Year
2009 
 
 
 
 
Unrecognized Tax Benefits
0 
0 
266,000 
 
266,000 
Net carrying amount, beginning
212,608,000 
 
 
212,608,000 
 
Internal Revenue Service (IRS) [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Operating Loss Carryforwards
83,100,000 
 
 
 
 
Beginning period of federal net operating loss carryforward
2011 
 
 
 
 
Expiration period of federal net operating loss
between 2031 and 2034 
 
 
 
 
State and Local Jurisdiction [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Operating Loss Carryforwards
100,600,000 
 
 
 
 
Expiration period of state net operating loss carryforward
between 2016 and 2034 
 
 
 
 
Foreign Tax Authority [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Operating Loss Carryforwards
1,900,000 
 
 
 
 
Expiration period of foreign net operating loss carryforward
beginning in 2016 
 
 
 
 
Other Current Assets [Member]
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Income Taxes Receivable
$ 20,000 
 
 
$ 20,000 
 
Employee Stock Purchase Plan and Stock Plan (Schedule of Employee Share Purchases) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
Shares purchased
21 
13 
6 
Average price per share
$ 5.40 
$ 6.24 
$ 4.90 
Employee Stock Purchase Plan and Stock Plan (Schedule of Stock Option Plan Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Beginning balance, shares (in shares)
3,681 
3,613 
Shares, granted (in shares)
526 
579 
Shares, exercised (in shares)
(154)
(223)
Shares, forfeited/canceled (in shares)
(100)
(288)
Ending balance, shares (in shares)
3,953 
3,681 
Shares, vested or expected to vest (in shares)
3,918 
 
Shares, exercisable (in shares)
2,570 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
 
Beginning balance, weighted average exercise price (in dollars per share)
$ 5.50 
$ 5.57 
Weighted average exercise price, granted (in dollars per share)
$ 8.91 
$ 6.25 
Weighted average exercise price, exercised (in dollars per share)
$ 4.36 
$ 5.53 
Weighted average exercise price, forfeited/canceled (in dollars per share)
$ 11.76 
$ 7.86 
Ending balance, weighted average exercise price (in dollars per share)
$ 5.84 
$ 5.50 
Weighted average exercise price, vested or expected to vest (in dollars per share)
$ 5.83 
 
Weighted average exercise price, exercisable (in dollars per share)
$ 5.80 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
 
 
Weighted average contractual life (in years), outstanding
6 years 6 months 18 days 
 
Weighted average contractual life (in years), vested or expected to vest
6 years 6 months 12 days 
 
Weighted average contractual life (in years), exercisable
5 years 7 months 20 days 
 
Aggregate intrinsic value, outstanding
$ 2,441 
 
Aggregate intrinsic value, vested or expected to vest
2,436 
 
Aggregate intrinsic value, exercisable
$ 1,558 
 
Employee Stock Purchase Plan and Stock Plan (Schedule of Non-vested Stock Options) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Summary of non-vested stock options
 
 
Beginning balance, shares (in shares)
3,681 
3,613 
Shares, granted (in shares)
526 
579 
Shares, forfeited/canceled (in shares)
(100)
(288)
Ending balance, shares (in shares)
3,953 
3,681 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
 
Beginning balance, weighted average exercise price (in dollars per share)
$ 5.50 
$ 5.57 
Weighted average exercise price, granted (in dollars per share)
$ 8.91 
$ 6.25 
Ending balance, weighted average exercise price (in dollars per share)
$ 5.84 
$ 5.50 
Non-Vested Options [Member]
 
 
Summary of non-vested stock options
 
 
Beginning balance, shares (in shares)
1,803 
 
Shares, vested
(898)
 
Shares, forfeited/canceled (in shares)
(48)
 
Ending balance, shares (in shares)
1,383 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
 
Beginning balance, weighted average exercise price (in dollars per share)
$ 2.43 
 
Weighted average exercise price, granted (in dollars per share)
$ 4.88 
 
Weighted average exercise price, vested
$ 4.13 
 
Weighted average exercise price, forfeited/cancelled
$ 6.40 
 
Ending balance, weighted average exercise price (in dollars per share)
$ 5.92 
 
Employee Stock Purchase Plan and Stock Plan (Schedule of Range of Exercise Price for Options Outstanding) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2015
Range of Exercise Price $2.37 – $3.99 [Member]
Dec. 31, 2015
Range of Exercise Price $5.37 – $7.19 [Member]
Dec. 31, 2015
Range of Exercise Price $8.20 – $9.03 [Member]
Dec. 31, 2015
Range of Exercise Price $23.85 – $35.42 [Member]
Dec. 31, 2015
Range of Exercise Price $2.37 – $35.42 [Member]
Summary of information concerning outstanding options
 
 
 
 
 
 
 
 
Share-based compensation arrangement, options, outstanding, number (in shares)
3,953 
3,681 
3,613 
1,396 
1,070 
1,467 
20 
3,953 
Range of exercise price range minimum
 
 
 
$ 2.37 
$ 5.37 
$ 8.20 
 
$ 2.37 
Range of exercise price range maximum
 
 
 
$ 3.99 
$ 7.19 
$ 9.09 
$ 35.42 
$ 35.42 
Employee Stock Purchase Plan and Stock Plan (Schedule of Nonvested Restricted Stock Options) (Details) (Restricted Stock [Member], USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Restricted Stock [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Beginning balance, shares
290 
Shares, granted (in shares)
158 
Shares, vested
(179)
Shares, forfeited/canceled
(3)
Ending balance, shares
266 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
Beginning balance, weighted average exercise price
$ 7.57 
Weighted average exercise price, granted
$ 8.95 
Weighted average exercise price, vested
$ 7.67 
Weighted average exercise price, forfeited/canceled
$ 8.77 
Ending balance, weighted average exercise price
$ 8.31 
Employee Stock Purchase Plan and Stock Plan (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Percentage on market value of common stock
100.00% 
 
 
Shares authorized under the plan (in shares)
3,500,000.0 
 
 
Shares available under Stock Plan (in shares)
2,300,000 
 
 
Maturity period of share
10 years 
 
 
Intrinsic value of option
$ 600,000 
$ 400,000 
$ 27,000 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross
526,000 
579,000 
 
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Fair market value of restricted stock
60,000 
 
 
Shares, granted (in shares)
158,000 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value
1,600,000 
1,800,000 
800,000 
Key Employees [Member] |
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Shares, granted (in shares)
116,000 
 
 
Chief Executive Officer [Member] |
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period
 
4 years 
 
Shares, granted (in shares)
 
144,000 
 
Non-employee Board Members [Member] |
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period
1 year 
1 year 
1 year 
Shares, granted (in shares)
7,000 
9,000 
 
Number of employee
6 
6 
6 
Director [Member] |
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Shares, granted (in shares)
 
 
15,000 
Maximum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period
4 years 
 
 
Maximum [Member] |
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period
4 years 
 
 
Minimum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period
3 years 
 
 
Minimum [Member] |
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period
3 years 
 
 
Employee Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Common stock, shares (in shares)
2,500 
 
 
Aggregate fair market value of common stock
25,000 
 
 
Percentage on market value of common stock
85.00% 
 
 
Share-based compensation, expense
$ 19,000 
$ 15,000 
$ 5,000 
Retirement Plans (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]
 
 
 
Contribution to plan
75.00% 
 
 
Contribution of highly compensated employees
6.00% 
 
 
Employer contribution
20.00% 
 
 
Employee contribution
4.00% 
 
 
Defined contribution plan, cost recognized
$ 400 
$ 80 
$ 50 
Derivatives and Hedging Transactions (Balance Sheet Classification) (Details) (Interest Rate Cap [Member], USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Derivatives, Fair Value [Line Items]
 
 
Interest rate cap contracts
$ 0 
$ 0 
Designated as Hedging Instrument [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Interest rate cap contracts
239 
 
Designated as Hedging Instrument [Member] |
Other Current Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Interest rate cap contracts
48 
 
Designated as Hedging Instrument [Member] |
Other Assets [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Interest rate cap contracts
$ 191 
 
Derivatives and Hedging Transactions (Cash Flow Hedging Relationship) (Details) (Interest Rate Cap [Member], Designated as Hedging Instrument [Member], Cash Flow Hedging [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Interest Rate Cap [Member] |
Designated as Hedging Instrument [Member] |
Cash Flow Hedging [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Interest rate cap contracts, net of tax
$ (211)
$ 0 
$ 0 
Derivatives and Hedging Transactions (Schedule of the Effect of the Amended Swap Transaction on the Consolidated Statements of Operations) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Interest expense
$ (6,974)
$ (14,560)
$ (23,737)
AOCL Income Effective Portion [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Interest expense
(36)
0 
0 
AOCL Income Ineffective Portion [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Interest expense
$ 0 
$ 0 
$ 0 
Derivatives and Hedging Transactions (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2015
contract
Sep. 30, 2015
contract
Jan. 31, 2015
contract
Derivative [Line Items]
 
 
 
Derivative, Number of Instruments Held
3 
3 
3 
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer
12 months 
 
 
Interest Rate Cap [Member] |
Designated as Hedging Instrument [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
 
 
$ 80.0 
Interest Rate Cap 2 [Member] |
Designated as Hedging Instrument [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
 
 
65.0 
Interest Rate Cap 3 [Member] |
Designated as Hedging Instrument [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative, Notional Amount
 
 
50.0 
Interest Expense [Member]
 
 
 
Derivative [Line Items]
 
 
 
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred
$ 0.2 
 
 
Fair Value Measurements (Fair Value Measurements) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
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
239 
0 
 
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 
 
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
$ 1,059 
$ 1,768 
$ 0 
Fair Value Measurements (Schedule Presents the Change In the Level 3 Contingent Purchase Price Consideration Liability) (Details) (Contingent Consideration [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Ending balance
$ 0 
$ 0 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Beginning balance
1,768 
0 
Additions related to acquisitions
0 
2,110 
Payments
(600)
(342)
Adjustments included in earnings
38 
0 
Foreign currency translation adjustments
(192)
0 
Ending balance
$ 1,059 
$ 1,768 
Valuation and Qualifying Accounts (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
$ 2,413 
$ 2,517 
$ 2,634 
Charges to Cost and Expenses
 
546 
636 
Deductions
(659)
(650)
(753)
Balance at End of Period
$ 2,094 
$ 2,413 
$ 2,517