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Document and Entity Information - shares	3 Months Ended
Mar. 31, 2018	Apr. 22, 2018
Document And Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Trading Symbol	VDSI
Entity Registrant Name	VASCO DATA SECURITY INTERNATIONAL INC
Entity Central Index Key	0001044777
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		40,312,000

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and equivalents	$ 126,484	$ 78,661
Short term investments	39,953	79,733
Accounts receivable, net of allowances of $809 in 2018 and $520 in 2017	34,445	48,126
Inventories, net	11,504	12,040
Prepaid expenses	6,478	3,876
Contract assets	4,874
Other current assets	4,547	5,501
Total current assets	228,285	227,937
Property and equipment
Furniture and fixtures	7,451	5,655
Office equipment	10,012	13,084
Property and equipment, gross	17,463	18,739
Accumulated depreciation	(11,163)	(13,963)
Property and equipment, net	6,300	4,776
Goodwill	57,025	56,332
Intangible assets, net of accumulated amortization	35,733	37,888
Deferred income taxes	4,975	5,460
Contract asset - non-current	7,488
Other assets	7,062	5,229
Total assets	346,868	337,622
Current liabilities
Accounts payable	4,822	8,144
Deferred revenue	30,433	33,295
Accrued wages and payroll taxes	10,669	11,643
Short-term income taxes payable	1,435	3,673
Other accrued expenses	9,598	7,746
Deferred compensation	395	1,652
Total current liabilities	57,352	66,153
Long-term deferred revenue	6,773	7,019
Other long-term liabilities	7,500	5,919
Long-term income taxes payable	12,848	12,848
Deferred income taxes	8,169	7,753
Total liabilities	92,642	99,692
Stockholders' equity
Common stock: $.001 par value per share, 75,000 shares authorized; 40,312 and 40,086 issued and outstanding at March 31, 2018 and December 31, 2017, respectively	40	40
Additional paid-in capital	91,106	90,307
Accumulated income	170,319	156,151
Accumulated other comprehensive loss	(7,239)	(8,568)
Total stockholders' equity	254,226	237,930
Total liabilities and stockholders' equity	$ 346,868	$ 337,622

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue
Revenue	$ 45,432	$ 41,965
Total revenue	45,432	41,965
Cost of goods sold
Cost of goods sold	8,185
Total cost of goods sold	10,735	12,053
Gross profit	34,697	29,912
Operating costs:
Sales and marketing	14,277	13,702
Research and development	5,797	5,856
General and administrative	10,774	7,853
Amortization of purchased intangible assets	2,201	2,199
Total operating costs	33,049	29,610
Operating income	1,648	302
Interest income, net	393	290
Other income, net	380	214
Income before income taxes	2,421	806
Provision for income taxes	629	233
Net income	$ 1,792	$ 573
Net income per share
Basic (in dollars per share)	$ 0.04	$ 0.01
Diluted (in dollars per share)	$ 0.04	$ 0.01
Weighted average common shares outstanding:
Basic (in shares)	39,910	39,760
Diluted (in shares)	40,059	39,770
Product and license
Revenue
Revenue	$ 33,494	$ 31,561
Cost of goods sold
Cost of goods sold	8,185	9,540
Service and other
Revenue
Revenue	11,938	10,404
Cost of goods sold
Cost of goods sold	$ 2,550	$ 2,513

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net Income	$ 1,792	$ 573
Adjustments to reconcile net income (loss) from operations to net cash provided by operations:
Depreciation and amortization	2,747	2,633
Deferred tax benefit	(9)	(395)
Stock-based compensation	800	544
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable, net	14,185	1,715
Inventories, net	535	(1,403)
Contract assets	(4,195)
Accounts payable	(3,360)	(1,507)
Income taxes payable	(3,012)	(2,914)
Accrued expenses	(821)	1,265
Deferred compensation	(1,258)	243
Deferred revenue	3,424	1,691
Other	(1,102)	(738)
Net cash provided by operating activities	9,726	1,707
Cash flows from investing activities
Purchase of short term investments		(69,626)
Maturities of short term investments	40,000	75,000
Additions to property and equipment	(2,296)	(247)
Net cash provided by investing activities	37,704	5,127
Cash flows from financing activities of continuing operations:
Tax payments for restricted stock issuances	(179)	(154)
Net cash used in financing activities	(179)	(154)
Effect of exchange rate changes on cash	572	253
Net increase in cash	47,823	6,933
Cash and equivalents, beginning of period	78,661	49,345
Cash and equivalents, end of period	$ 126,484	$ 78,661

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 1 - Summary of Significant Accounting Policies

Nature of Operations

VASCO Data Security International, Inc. (“VASCO”) and its wholly owned subsidiaries design, develop, market and support hardware and software security systems that manage and secure access to information assets. VASCO has operations in Austria, Australia, Belgium, Brazil, Canada, China, France, Japan, The Netherlands, Singapore, Switzerland, the United Arab Emirates, the United Kingdom, and the United States (“U.S.”).

In accordance with ASC 280, Segment Reporting, our operations are reported as a single operating segment.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of VASCO and its subsidiaries and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements and should be read in conjunction with the audited consolidated financial statements included in the company’s Annual Report on Form 10‑K for the year ended December 31, 2017.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the results of the interim periods presented. All significant intercompany accounts and transactions have been eliminated. The operating results for the interim periods presented are not necessarily indicative of the results expected for a full year.

Reclassifications

Certain amounts from prior year have been reclassified to conform to current year presentation.

Principles of Consolidation

The consolidated financial statements include the accounts of VASCO and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Estimates and Assumptions

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

Foreign Currency Translation and Transactions

The financial position and results of the operations of the majority of the company’s foreign subsidiaries are measured using the local currency as the functional currency. Accordingly, assets and liabilities are translated into U.S. Dollars using current exchange rates as of the balance sheet date. Revenue and expenses are translated at average exchange rates prevailing during the year. Translation adjustments arising from differences in exchange rates are charged or credited to other comprehensive income. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations in other income (expense), net.

The financial position and results of operations of our operations in Canada, Singapore and Switzerland are measured in U.S. Dollars. For these subsidiaries, gains and losses that result from foreign currency transactions are included in the consolidated statements of operations in other income (expense), net.

For the three month period ended March 31, 2018, foreign currency transactions resulted in a net gain of $210 compared to a net loss of $24 for the same period in 2017.

Revenue Recognition

On January 1, 2018, we adopted Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers” (FASB Accounting Standards Codification (ASC) Topic 606, or “Topic 606”) using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under FASB ASC Topic 605 “Revenue Recognition” and FASB ASC Topic 985-605 “Software-Revenue Recognition” (“Topic 605”). We recorded a net reduction to opening Accumulated Income of $12,371, net of tax, as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to the accounting impacts of our customer contracts that include a term license to our software, as well as the impact of accounting for costs incurred to obtain our contracts. The net impact to revenues as a result of applying Topic 606 was an increase of $3,145 for the three months ended March 31, 2018. See Note 2 for further details.

We determine revenue recognition through the following steps:

Identification of the contract, or contracts, with a customer;

Identification of the performance obligations in the contract;

Determination of the transaction price;

Allocation of the transaction price to the performance obligations in the contract; and

Recognition of revenue when, or as, we satisfy a performance obligation.

Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services, which excludes any sales incentives and amounts collected on behalf of third parties. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are in included in cost of revenues.

Nature of Goods and Services

We derive our revenues primarily from Product and License Revenue, which includes hardware products and software licenses, and Services and Other, which is inclusive of software-as-a-service (which we refer to as “subscription”), maintenance and support, and professional services.

Product Revenue: Revenue from the sale of security hardware is recorded upon shipment, which is the point at which control of the goods are transferred and the completion of performance obligation, unless there are specific terms that would suggest control is transferred at a later date (e.g. delivery). No significant obligations or contingencies typically exist with regard to delivery, customer acceptance or rights of return at the time revenue is recognized. Customer payments normally correspond with delivery.

License Revenue: Revenue from the sale of software licensing is recorded upon the latter of when the customer receives the ability to access the software or when they are legally allowed to use the software. No significant obligations or contingencies exist with regard to delivery, customer acceptance or rights of return at the time revenue is recognized. Contracts with customers for distinct licenses of intellectual property include perpetual licenses, which grant the customer unlimited access to the software, and term licenses which limit the customer’s access to the software. The typical term license length is 3 years. Customer payments normally correspond with delivery for perpetual licenses. For term licenses, payments are either on installment or in advance. In limited circumstances, we integrate third party software solutions into our software products. We have determined that, consistent with our conclusion under prior revenue recognition rules, we act as the principal with respect to the satisfaction of the related performance obligation and record the corresponding revenue on a gross basis from these transactions. The fees paid to the third parties are recognized as a component of cost of sales when the revenue is recognized.

Subscription Revenue: We generate subscription revenues from our cloud services offerings. Subscription revenues mostly include fees from customers for access to the eSignLive suite of solutions. Our standard customer arrangements do not provide the customer with the right to take possession of the software supporting the cloud-based application service at any time. As such, these arrangements are considered service contracts and revenue is recognized ratably over the service period of the contract. Customer payments are normally in advance for annual service.

Maintenance and Support and Other: Maintenance and support agreements generally call for us to provide software updates and technical support, respectively, to customers. Revenue on maintenance and technical support is deferred and recognized ratably over the term of the maintenance and support agreement. Customer payments are normally in advance for annual service.

Professional Services: We provide professional services to our customers. Revenue from such services is recognized during the period in which the services are performed. Payments vary, but normally occur on a time and materials basis.

Significant Judgments

Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Certain arrangements may involve a significant level of configuration. Judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the other performance obligations and recognized over time.

Judgment is required to determine the stand-alone selling price (“SSP”) for each distinct performance obligation. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount that needs to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, and when we sell at a highly variable price range, such as for software licenses and for subscriptions, we determine the SSP for those performance obligations using the residual method.

Cash and Cash Equivalents

Cash and cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are high-quality short term money market instruments and commercial paper, with original maturities of three months or less. Cash is held by a number of U.S. and non-U.S. commercial banks and money market investment funds.

Short Term Investments

Short term investments are stated at cost plus accrued interest, which approximates fair value. Short term investments consist of bank certificates of deposit and high quality commercial paper with original maturities of more than three and less than twelve months.

Accounts Receivable and Allowance for Doubtful Accounts

The creditworthiness of customers (including distributors and resellers) is reviewed prior to shipment. A reasonable assurance of collection is a requirement for revenue recognition. Verification of credit and/or the establishment of credit limits are part of the customer contract administration process. Credit limit adjustments for existing customers may result from the periodic review of outstanding accounts receivable. The company records trade accounts receivable at invoice values, which are generally equal to fair value.

We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make payments for goods and services. We analyze accounts receivable balances, customer credit-worthiness, current economic trends and changes in our customer payment timing when evaluating the adequacy of the allowance for doubtful accounts. The allowance is based on a specific review of all significant past-due accounts. If the financial condition of our customers deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

Inventories, net

Inventories, consisting principally of hardware and component parts, are stated at the lower of cost or net realizable value. Cost is determined using the first-in-first-out (FIFO) method. We write down inventory when it appears that the carrying cost of the inventory may not be recovered through subsequent sale of the inventory. We analyze the quantity of inventory on hand, the quantity sold in the past year, the anticipated sales volume in the form of sales to new customers as well as sales to previous customers, the expected sales price and the cost of making the sale when evaluating the valuation of our inventory. If the sales volume or sales price of a specific model declines significantly, additional write downs may be required.

Property and Equipment

Property and equipment is stated at cost. Depreciation for the first quarter of 2018 was $0.5 million, compared to $0.4 million for the first quarter of 2017. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets ranging from three to seven years. Additions and improvements are capitalized, while expenditures for maintenance and repairs are charged to operations as incurred. Gains or losses resulting from sales, disposals, or retirements are recorded as incurred, at which time related costs and accumulated depreciation are removed from the accounts.

Long Term Investments

Included in Other Assets are minority equity investments in companies we believe may be beneficial in executing our strategy. At March 31, 2018 and December 31, 2017, investments were $4,813 and $4,361, respectively. In accordance with ASC 325, the investments are recorded at fair value using the alternative measurement method allowed for in ASU 2016-01, and are evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Cost of Goods Sold

Included in product and license cost of goods sold are direct product costs. Cost of goods sold related to service revenues are primarily costs related to subscription solutions, including personnel and equipment costs, and personnel costs of employees providing professional services and maintenance and support.

Research and Development Costs

Costs for research and development, principally the design and development of hardware, and the design and development of software prior to the determination of technological feasibility, are expensed as incurred on a project-by-project basis.

Software Development Costs

We capitalize software development costs in accordance with ASC 985‑20, Costs of Software to be Sold, Leased, or Marketed. Research costs and software development costs, prior to the establishment of technological feasibility, determined based upon the creation of a working model, are expensed as incurred. Our software capitalization policy defines technological feasibility as a functioning beta test prototype with confirmed manufacturability (a working model), within a reasonably predictable range of costs. Additional criteria include receptive customers, or potential customers, as evidenced by interest expressed in a beta test prototype, at some suggested selling price. Our policy is to amortize capitalized costs by the greater of (a) the ratio that current gross revenue for a product bears to the total of current and anticipated future gross revenue for that product or (b) the straight-line method over the remaining estimated economic life of the product, generally two to five years, including the period being reported on. No material software development costs were capitalized during the three months ended March 31, 2018.

Income Taxes

As a global company, we calculate and provide for income taxes in each tax jurisdiction in which we operate. The provision for income taxes includes the amounts payable or refundable for the current year, the effect of deferred taxes and impacts from uncertain tax positions. Our provision for income taxes is significantly affected by shifts in the geographic mix of our pre-tax earnings across tax jurisdictions, changes in tax laws and regulations, and tax planning opportunities available in each tax jurisdiction.

Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement and tax bases of our assets and liabilities and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those differences are expected to be recovered or settled. Valuation allowances are established for deferred tax assets when it is more likely than not that a tax benefit will not be realized. We recognize the effect of a change in tax rates on deferred tax assets and liabilities and in income in the period that includes the enactment date.

We recognize tax benefits for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in our income tax returns that do not meet these recognition and measurement standards. Assumptions, judgments, and the use of estimates are required in determining whether the “more likely than not” standard has been meet when developing the provision for income taxes.

See Note 6 – Income Taxes discussing 2017 U.S. tax reform and Staff Accounting Bulletin No. 118 ("SAB 118") issued by the SEC.

Fair Value of Financial Instruments

At March 31, 2018, and December 31, 2017, our financial instruments were cash and equivalents, short term investments, accounts receivable, accounts payable and accrued liabilities. The estimated fair value of our financial instruments has been determined by using available market information and appropriate valuation methodologies, as defined in ASC 820, Fair Value Measurements. The fair values of the financial instruments were not materially different from their carrying amounts at March 31, 2018 and December 31, 2017.

Accounting for Leases

All of our leases are operating leases. Rent expense on facility leases is charged evenly over the life of the lease, regardless of the timing of actual payments.

Goodwill and Other Intangibles

Intangible assets arising from business combinations such as acquired technology, customer relationships, and other intangible assets, are originally recorded at fair value. Intangible assets other than patents with definite lives are amortized over the useful life, generally three to seven years for proprietary technology and five to twelve years for customer relationships. Patents are amortized over the life of the patent, generally 20 years in the U.S.

Goodwill represents the excess of purchase price over the fair value of net identifiable assets acquired in a business combination. We assess the impairment of goodwill and intangible assets with indefinite lives each November 30 or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company’s impairment assessment begins with a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. The qualitative assessment includes comparing the overall financial performance of the reporting unit against the planned results used in the last quantitative goodwill impairment test. Additionally, the reporting unit’s fair value is assessed in light of certain events and circumstances, including macroeconomic conditions, industry and market considerations, cost factors, and other relevant entity- and reporting unit specific events. The selection and assessment of qualitative factors used to determine whether it is more likely than not that the fair value of the reporting unit exceeds the carrying value involves significant judgments and estimates. If it is determined under the qualitative assessment that it is more likely than not that the fair value of the reporting unit is less than its carrying value, then a two-step quantitative impairment test is performed. Under the first step, the estimated fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the estimated fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation in acquisition accounting. The residual amount after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit under the two-step assessment is determined using a combination of both income and market-based variation approaches. The inputs and assumptions to valuation methods used to estimate the fair value of reporting units involves significant judgments.

We operate in one reporting unit and have had no impairment recorded for the three months ended March 31, 2018.

Stock-Based Compensation

We have stock-based employee compensation plans, described in Note 7. ASC 718‑10, Stock Compensation requires us to estimate the fair value of restricted stock granted to employees, directors and others and to record compensation expense equal to the estimated fair value. Compensation expense is recorded on a straight-line basis over the vesting period for time-based awards and on a graded basis for performance-based awards. Forfeitures are recorded as incurred.

Retirement Benefits

We record annual expenses relating to its pension defined benefit plans based on calculations which include various actuarial assumptions, including discount rates, assumed asset rates of return, compensation increases, and turnover rates. We review our actuarial assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends. The effects of gains, losses, and prior service costs and credits are amortized over the average service life. The funded status, or projected benefit obligation less plan assets, for each plan, is reflected in our consolidated balance sheets using a December 31 measurement date.

Warranty

Warranties are provided on the sale of certain of our products and an accrual for estimated future claims is recorded at the time revenue is recognized. We estimate the cost based on past claims experience, sales history and other considerations. We regularly assess the adequacy of our estimates and adjust the amounts as necessary. Our standard practice is to provide a warranty on our hardware products for either a one or two year period after the date of purchase. Customers may purchase extended warranties covering periods from one to four years after the standard warranty period. We defer the revenue associated with the extended warranty and recognize it into income on a straight-line basis over the extended warranty period. We have historically experienced minimal actual claims over the warranty period.

Recently Issued Accounting Pronouncements

Effective January 1, 2018, we adopted ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01, which revises the classification and measurement of investments in equity securities. ASU 2016-01 requires that equity investments, except those accounted for under the equity method of accounting, be measured at fair value and changes in fair value are recognized in net income. ASU 2016-01 also provides a new measurement alternative for equity investments that do not have a readily determinable fair value (cost method investments). These investments are measured at cost, less any impairment, adjusted for observable price changes. Effective January 1, 2018, we elected to record our equity investments that do not have a readily determinable fair value using the alternative measurement method. Accordingly upon adoption, we recorded a cumulative effect adjustment to increase opening accumulated income at January 1, 2018 by $457, net of tax, as required for our equity investments with no readily determinable fair value to reflect these investments at approximate fair value.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which supersedes ASC Topic 840, Leases, and creates a new topic, ASC Topic 842, Leases. This update requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is to become effective for the Company on January 1, 2019. Currently, ASU No. 2016-02 requires companies to adopt the requirements of the new standard by applying a modified retrospective approach to the beginning of the earliest period presented in the financial statements. However, the FASB issued an exposure draft in January 2018, which would allow companies the option to instead apply the provisions of the new standard at the effective date without adjusting the comparative periods presented. While the Company is currently assessing the impact ASU No. 2016-02 will have on its consolidated financial statements, the Company expects the primary impact upon adoption will be the recognition, on a discounted basis, of its minimum commitments under noncancellable operating leases on its consolidated balance sheets resulting in the recording of right of use assets and lease obligations.

In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows: Restricted Cash" (Topic 230). This ASU requires that a statement of cash flows explain the change during the period in the total of cash, and cash equivalents, including amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. This ASU is effective for us in the first quarter of fiscal 2018. Adoption is required on a retrospective transition basis. The Company does not have any restricted cash or restricted cash equivalents.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (ASC 230) – Classification of Certain Cash Receipts and Cash Payments. This guidance clarifies eight specific cash flow issues in an effort to reduce diversity in practice in how certain transactions are classified within the statement of cash flows. We adopted this ASU on January 1, 2018 on a retrospective basis; however, the impact was not material to our consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory. The new guidance is intended to simplify the accounting for intercompany asset transfers. The core principle requires an entity to immediately recognize the tax consequences of intercompany asset transfers. We adopted this standard on January 1, 2018 on a prospective basis. The impact was not material to our consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations – Clarifying the Definition of a Business. This standard changes the definition of a business by requiring that at least one substantive process exist in the acquired entity. It also states that if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, then the set of transferred assets and activities is not a business. We adopted the standard on January 1, 2018 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment. This standard eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge (i.e. Step 2 of the current guidance), instead measuring the impairment charge as the excess of the reporting unit's carrying amount over its fair value (i.e. Step 1 of the current guidance). The guidance is effective for us beginning in the first quarter of 2020, and should be applied prospectively. Early adoption is permitted for impairment testing dates after January 1, 2017. We are currently evaluating the effect, if any, that the ASU will have on our consolidated financial statements and related disclosures.

In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (ASC 715) - Improving the Presentation of Net Periodic Pension Costs and Net Periodic Postretirement Benefit Cost. The new guidance will improve the presentation of pension cost by providing additional guidance on the presentation of net benefit cost in the income statement and on the components eligible for capitalization in assets. The core principle of the ASU is to provide more transparency in the presentation of these costs by requiring the service cost component to be reported in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented separately from the service cost component and outside a subtotal of income from operations. The amendments require that the Consolidated Statements of Income impacts be applied retrospectively, while Balance Sheet changes should be applied prospectively.

The ASU is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2017. The Company adopted the newly issued ASU as of January 1, 2018. The adoption of the standard did not have a material impact our consolidated financial statements and related disclosures.

We adopted Accounting Standard Update, or ASU, 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, in the first quarter of 2018. The ASU allows for the reclassification of stranded tax effects on items resulting from the Tax Cuts and Jobs Act, or the 2017 Tax Act, from accumulated other comprehensive income, or AOCI, to retained earnings. Tax effects unrelated to the 2017 Tax Act are released from AOCI using either the specific identification approach or the portfolio approach based on the nature of the underlying item. We elected not to reclassify the income tax effects of the 2017 Tax Act.

In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. The ASU adds various Securities and Exchange Commission (“SEC”) paragraphs pursuant to the issuance of the December 2017 SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) (“Tax Cuts and Jobs Act”), which was effective immediately. The SEC issued SAB 118 to address concerns about reporting entities’ ability to timely comply with the accounting requirements to recognize all of the effects of the Tax Cuts and Jobs Act in the period of enactment. SAB 118 allows disclosure that timely determination of some or all of the income tax effects from the Tax Cuts and Jobs Act are incomplete by the due date of the financial statements and if possible to provide a reasonable estimate. We have accounted for the tax effects of the Tax Cuts and Jobs Act under the guidance of SAB 118, on a provisional basis. Our accounting for certain income tax effects is incomplete, but we have determined reasonable estimates for those effects and have recorded provisional amounts in our condensed consolidated financial statements as of March 31, 2018 and December 31, 2017.

Revenue

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue

Note 2 – Revenue

The Company adopted Topic 606 Revenue from Contracts with Customers with a date of the initial application of January 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition as detailed below.

The Company applied Topic 606 using the modified retrospective method – i.e. by recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of Accumulated Income at January 1, 2018. Therefore, the comparative information has not been adjusted and continues to be reported under Topic 605. The details of the significant changes and quantitative impact of the changes are set out below.

Term Licenses

For revenues generated from arrangements that included term licenses to our software, the Company previously recognized revenue ratably over the term of the contract when VSOE did not exist for all undelivered elements. Under Topic 606, these licenses are considered licenses of functional intellectual property, which requires recognition at the point in time all of the revenue recognition criteria per Topic 606 are met, which for the Company is generally when the customer is provided access to the software and the license term has commenced. We have established a stand-alone selling price (SSP) for all other performance obligations in the contract. Accordingly, the Company now recognizes revenue from these licenses, based on the residual approach due to highly variable pricing, at the beginning of the license period and recognizes the transaction price allocated to the other performance obligations in the contract (typically maintenance and support) over the period in which those performance obligations are satisfied. This is consistent with the method of recognizing revenue for perpetual licenses of intellectual property. Fees paid to third party software providers in term license arrangements are now recognized under Topic 606 when the term license revenues are recognized.

Sales Commissions

The Company incurs incremental costs related to commissions, which can be directly tied to obtaining a contract. For commissions earned by sales personnel, the Company previously recognized these amounts when they were earned by the employees. As a result of adopting Topic 606, the Company now capitalizes commissions associated with new customers and amortizes the costs over a period in which the Company is expected to benefit, which can be up to seven years. The amortization is reflected in Sales and Marketing in the statement of operations. For certain contracts, any commission that is subject to a service period, such as employment, is expensed as incurred within Sales and Marketing in the statement of operations.

Disaggregation of Revenues

The following tables present our revenues disaggregated by major products and services, geographical region and timing of revenue recognition.

Revenue by major products and services


	For the three months ended March 31,
	2018		2017*

Hardware products	$	17,491	$	21,744
Software licenses		16,003		9,816
Subscription		2,970		2,115
Professional services		964		961
Maintenance, support and other		8,004		7,329

Total Revenue	$	45,432	$	41,965

* Prior period amounts are presented under ASC 605 and 985-605

Revenue by location of customer


	EMEA			Americas			APAC			Total

Total Revenue:
2018	$	18,387		$	15,921		$	11,124		$	45,432
2017*	$	18,370		$	12,124		$	11,471		$	41,965



Percent of Total:
2018		40	%		35	%		25	%		100	%
2017*		44	%		29	%		27	%		100	%
* Prior period amounts are presented under ASC 605 and 985-605

Timing of revenue recognition


	For the three months ended March 31,
	2018

Products and Licenses transferred at a point in time	$	33,494
Services transferred over time		11,938

Total Revenue	$	45,432

Impacts on Financial Statements

The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements for the three months ended March 31, 2018.

Balance Sheet


	As of March 31, 2018
	As Reported		Adjustments		Balances without the adoption of Topic 606

ASSETS
Current assets
Accounts receivable, net of allowance	$	34,445	$	(276)	$	34,169
Contract asset		4,874		(4,874)		-
Other current assets		4,547		302		4,849
Total current assets		228,285		(4,848)		223,437
Deferred income taxes		4,975		507		5,482
Contract asset - non-current		7,488		(7,488)		—
Other assets		7,062		(30)		7,032
Total assets	$	346,868	$	(11,859)	$	335,009
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Deferred revenue	$	30,433	$	5,468	$	35,901
Short-term income taxes payable		1,435		(1,942)		(507)
Total current liabilities		57,352		3,526		60,878
Deferred revenue - non-current		6,773		89		6,862
Deferred income taxes		8,169		(424)		7,745
Total liabilities		92,642		3,191		95,833
Stockholders' equity
Accumulated income		170,319		(15,050)		155,269
Total stockholders' equity		254,226		(15,050)		239,176
Total liabilities and stockholders' equity	$	346,868	$	(11,859)	$	335,009

Statement of Operations


	For the three-months ended March 31, 2018
	As Reported		Adjustments		Balances without the adoption of Topic 606

Revenue
Product and license	$	33,494	$	(2,447)	$	31,047
Services and other		11,938		(698)		11,240
Total revenue		45,432		(3,145)		42,287

Cost of goods sold
Product and license		8,185		393		8,578
Services and other		2,550		—		2,550
Total Cost of goods sold		10,735		393		11,128

Gross profit		34,697		(3,538)		31,159

Operating Costs
Sales and marketing		14,277		382		14,659
Total operating costs		33,049		382		33,431

Operating income (loss)		1,648		(3,920)		(2,272)

Income before taxes		2,421		(3,920)		(1,499)

Provision for income tax		629		(1,019)		(390)

Net income (loss)	$	1,792	$	(2,901)	$	(1,109)

Basic EPS	$	0.04			$	(0.03)
Diluted EPS	$	0.04			$	(0.03)

The adoption of Topic 606 did not impact total operating, investing or financing cash flows in the statement of cash flows.

Contract balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.


	January 1,			March 31,
	2018			2018
Receivables, inclusive of trade and unbilled	$	48,217	$		34,445
Contract Assets (current and non-current)	$	8,167	$		12,362
Contract Liabilities (Deferred Revenue current and non-current)	$	33,752	$		37,207

Contract assets relate primarily to multi-year term license arrangements and the remaining contractual billings. These contract assets are transferred to receivables when the right to billing occurs, which is normally over 3-5 years. The contract liabilities primarily relate to the advance consideration received from customers for subscription and maintenance services. Revenue is recognized for these services over time.

As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. We do not typically include extended payment terms in our contracts with customers.

During the three months ended March 31, 2018, the Company’s contract asset balances increased $4,200 primarily due to new term contracts exceeding billings during the period, partially offset by transfers to accounts receivable. Deferred Revenue increased in the same period due to advanced payments from annual renewals, offset by a decrease of approximately $11,000 associated with revenue recognized.

Transaction price allocated to the remaining performance obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.


	2018		2019		2020		Beyond 2020		Total

Future revenue related to current unsatisfied performance obligations	$	7,242	$	5,977	$	3,064	$	2,654	$	18,937

The Company applies practical expedients and does not disclose information about remaining performance obligations a) that have original expected durations of one year or less, or b) where revenue is recognized as invoiced.

Costs of obtaining a contract

The Company incurs incremental costs related to commissions, which can be directly tied to obtaining a contract. Under Topic 606, the Company capitalizes commissions associated with certain new contracts and amortizes the costs over a period of benefit based on the transfer of goods or services that we have determined to be up to seven years. The Amortization is reflected in Sales and Marketing in the Statement of Operations. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors, including customer attrition. Commissions are payable upon receipt of payment by the customer and requires the employee to be a current employee. For contracts with multiple year payment terms, as the commissions that are payable after year 1 are payable based on continue employment, they are expensed when incurred. Commissions and amortization expense is included in Sales and Marketing expenses on the consolidated statements of operations.

Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period for the assets that the Company otherwise would have recognized is one year or less. These costs are included in Sales and Marketing expense in the consolidated statement of operations.

The following tables provides information related to the capitalized costs and amortization recognized in the period:


		Three months ended
in thousands		March 31, 2018
Capitalized costs to obtain contracts, current	$	296
Capitalized costs to obtain contracts, non-current	$	1,540


		Three months ended
in thousands		March 31, 2018
Amortization of capitalized costs to obtain contracts	$	65
Impairments of capitalized costs to obtain contracts	$	-

Contingencies	3 Months Ended
Contingencies	Mar. 31, 2018
Contingencies
Contingencies	Note 9 – Legal Proceedings and Contingencies We are a party to or have intellectual property subject to litigation and other proceedings that arise in the ordinary course of our business. These types of matters could result in fines, penalties, compensatory or treble damages or non-monetary sanctions or relief. We believe the probability is remote that the outcome of each of these matters, including the legal proceedings described below, will have a material adverse effect on the corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our financial results in any particular interim reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress. Although we cannot predict the outcome of legal or other proceedings with certainty, where there is at least a reasonable possibility that a loss may have been incurred, GAAP requires us to disclose an estimate of the reasonably possible loss or range of loss or make a statement that such an estimate cannot be made. We follow a process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion of legal proceedings, a reasonably possible loss or range of loss associated with any individual legal proceeding cannot be estimated. We include various types of indemnification clauses in our agreements. These indemnifications may include, but are not limited to, infringement claims related to our intellectual property, direct damages and consequential damages. The type and amount of such indemnifications vary substantially based on our assessment of risk and reward associated with each agreement. We believe the estimated fair value of these indemnification clauses is minimal, and we cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions. We have no liabilities recorded for these clauses as of March 31, 2018. During the second quarter of 2015, our management became aware that certain of our products which were sold by our European subsidiary to a third-party distributor may have been resold by the distributor to parties in Iran, potentially including parties whose property and interests in property may be blocked pursuant to Executive Order 13224, Executive Order 13382 or that may be identified under Section 560.304 of 31 C.F.R. Part 560 as the “Government of Iran”. We ceased shipping to such distributor. In addition, the Audit Committee of the Company’s Board of Directors initiated an internal review of this matter with the assistance of outside counsel. As a precautionary matter, concurrent initial notices of voluntary disclosure were submitted on June 25, 2015 to each of the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”), and the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”). The Audit Committee with the assistance of outside counsel completed their review in 2015. On December 15, 2015, we filed a letter with BIS (Office of Export Enforcement) with the conclusion that the products supplied to the distributor were not subject to United States Export Control jurisdiction. The Office of Export Enforcement issued a “no action” letter, concluding the voluntary self-disclosure process under the Export Administration Regulations. In addition, on January 13, 2016, we filed a letter with OFAC, with the conclusions that VASCO and its subsidiaries made no direct sales to Iran or any party listed by OFAC as a Specially Designated National over the five-year period under review (i.e., June 1, 2010 to June 30, 2015). The letter further noted that the investigation did not identify any involvement on the part of senior management officials of VASCO, and to the contrary, noted that VASCO executive management officials had sought to implement procedures and provided notices to VASCO’s sales personnel to prevent the diversion of VASCO products to unauthorized destinations and end users. We have not received any response to the letter to OFAC and we cannot predict when OFAC will conclude their review of our voluntary self-disclosures. Based upon the OFAC guidelines for monetary penalties, in the fourth quarter of 2015, we accrued $900 for potential penalties if they are assessed by OFAC. Ultimately no penalty may be assessed or the penalty may be less or greater than the accrual. On January 10, 2011, we purchased our wholly-owned subsidiary, DigiNotar B.V., a private company organized and existing in The Netherlands from the shareholders (“Sellers”). On September 19, 2011, DigiNotar B.V. filed a bankruptcy petition under Article 4 of the Dutch Bankruptcy Act in the Haarlem District Court, The Netherlands. The bankruptcy trustee took over management of DigiNotar B.V.’s business activities and is responsible for the administration and liquidation of DigiNotar B.V. In connection with the bankruptcy of DigiNotar B.V., in January 2015, we received a notice of potential claim by the trustee against all of the individuals who served as Directors of DigiNotar, both before and after our acquisition of DigiNotar. On March 29, 2018, we entered into a settlement agreement among the bankruptcy estate, the pre-acquisition directors, the VASCO directors and the Company. After payment from third parties, including our insurance carrier, the amount of the settlement is not material to our financial position. On July 28, 2015 a putative class action complaint was filed in the United States District Court for the Northern District of Illinois, captioned Linda J. Rossbach v. Vasco Data Security International, Inc., et al., case number 1:15‑cv‑06605, naming VASCO and certain of its current and former executive officers as defendants and alleging violations under the Securities Exchange Act of 1934, as amended. The suit was purportedly filed on behalf of a putative class of investors who purchased VASCO securities between April 28, 2015 and July 28, 2015, and seeks to recover damages allegedly caused by the defendants’ alleged violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b‑5 promulgated thereunder. The complaint seeks certification as a class action and unspecified compensatory damages plus interest and attorneys’ fees. Pursuant to a September 1, 2015 scheduling order entered by the court, the lead plaintiff, once appointed, will have sixty days to file an amended complaint or notify the defendants that the lead plaintiff intends to rely on the current complaint. On January 30, 2017, the appointed lead plaintiff filed an amended complaint in which the allegations regarding OFAC related matters were dropped and replaced with allegations regarding public disclosures made by the defendants in April 2015 as compared to public statements made in July 2015, generally regarding the strength of the Company’s business and its future prospects. This case is now referred to by the name of the new lead plaintiff, Bunk. The defendants filed a motion to dismiss the Bunk complaint on March 31, 2017. A decision from the court on such motion has not been issued to date. Although the ultimate outcome of litigation cannot be predicted with certainty, the Company believes that this lawsuit is without merit and intends to defend against the action vigorously. VASCO is indemnifying its officers and directors for this matter. On October 9, 2015, a derivative complaint was filed in the United States District Court for the Northern District of Illinois, captioned Elizabeth Herrera v. Hunt, et al., case number 1:15‑cv‑08937, naming VASCO’s Board of Directors and certain of its current and former executive officers as individual defendants and the Company as a nominal defendant. Two additional complaints, captioned Beth Seltzer v. Hunt, et al., case number 2015‑ch‑15541, and William Hooper v. Hunt, et al., case number 2016‑ch‑04054, were filed on October 22, 2015 and March 22, 2016, respectively, in the Circuit Court of Cook County, Illinois naming the same defendants. The complaints assert, among other things, that the individual defendants breached their fiduciary duties by making material misstatements in, and omitting material information from, the Company’s public disclosures and by failing to maintain adequate internal controls and properly manage the Company. Among other things, the complaints seek unspecified compensatory damages and injunctive relief. On October 29, 2015, a defendant removed the Seltzer action to the United States District Court for the Northern District of Illinois. Thereafter, the plaintiff filed a motion to remand the action back to the Circuit Court of Cook County, Illinois, which was denied on February 3, 2016. On February 9, 2016, the court granted an agreed motion for voluntary dismissal of the Seltzer action, which dismissed the action with prejudice as to the named plaintiff’s individual claims. As for the Hooper action, the court granted a stay on June 8, 2016 and on July 18, 2017, the plaintiff in Hooper amended the complaint to largely mirror the amended complaint in Bunk. On July 19, 2017, a derivative complaint was filed in the Circuit Court of Cook County, Illinois, captioned Fancesco D’Angelo v. Hunt, et. al., naming VASCO’s Board of Directors and certain former officers as individual defendants and the Company as a nominal defendant. This complaint largely follows the allegations in the Bunk case. The D’Angelo case has been consolidated with the Hooper case and remains subject to stay. In February 2017, we learned an integrated reseller and certain end customers, were named as defendants in a patent infringement lawsuit in Japan related to our CRONTO technology. We have indemnification obligations in favor of our reseller and end customers and are working with them to defend such suit. In December 2017, the Japan Patent Office ruled the plaintiff’s patent is invalid. In February 2018, a trial court decision declared the plaintiff’s patent to be invalid. Those decisions are subject to appeal. We will continue to support our customers in any appeals and continue to believe that the lawsuit is without merit. On March 14, 2017, a complaint was filed in the United States District Court for the District of Massachusetts, captioned StrikeForce Technologies, Inc. v. Vasco Data Security International, Inc., et al., claiming VASCO infringed on certain patent rights of the plaintiff. On May 8, 2017, VASCO answered the complaint denying the allegations of patent infringement. The parties then engaged in motion practice and discovery in the case. The plaintiff has also brought suit against various other companies in the cybersecurity industry. In one such suit in the federal district court for the Central District of California, on December 1, 2017, the court granted defendant’s motion to dismiss, finding that the StrikeForce asserted claims are invalid. StrikeForce is in the process of appealing such decision. In light of such ruling, on December 20, 2017, the court in the Company’s case granted a stay of the proceedings pending the appeal in the related case. Although the ultimate outcome of litigation cannot be predicted with certainty, the Company believes that this lawsuit is without merit and intends to defend itself vigorously.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Summary of Significant Accounting Policies

Nature of Operations

In accordance with ASC 280, Segment Reporting, our operations are reported as a single operating segment.

Basis of Presentation

Reclassifications

Certain amounts from prior year have been reclassified to conform to current year presentation.

Principles of Consolidation

The consolidated financial statements include the accounts of VASCO and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Estimates and Assumptions

Foreign Currency Translation and Transactions

For the three month period ended March 31, 2018, foreign currency transactions resulted in a net gain of $210 compared to a net loss of $24 for the same period in 2017.

Revenue Recognition

We determine revenue recognition through the following steps:

Identification of the contract, or contracts, with a customer;

Identification of the performance obligations in the contract;

Determination of the transaction price;

Allocation of the transaction price to the performance obligations in the contract; and

Recognition of revenue when, or as, we satisfy a performance obligation.

Nature of Goods and Services

Significant Judgments

Cash and Cash Equivalents

Short Term Investments

Accounts Receivable and Allowance for Doubtful Accounts

Inventories

Inventories, net

Property and Equipment

Cost of Goods Sold

Long Term Investments

Cost of Goods Sold

Research and Development Costs

Software Development Costs

Income Taxes

See Note 6 – Income Taxes discussing 2017 U.S. tax reform and Staff Accounting Bulletin No. 118 ("SAB 118") issued by the SEC.

Fair Value of Financial Instruments

Accounting for Leases

All of our leases are operating leases. Rent expense on facility leases is charged evenly over the life of the lease, regardless of the timing of actual payments.

Goodwill and Other Intangibles

We operate in one reporting unit and have had no impairment recorded for the three months ended March 31, 2018.

Stock-Based Compensation

Retirement Benefits

Warranty

Recently Issued Accounting Pronouncements

Revenue (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenues disaggregated by geography, major product line and timing of revenue recognition

The following tables present our revenues disaggregated by major products and services, geographical region and timing of revenue recognition.

Revenue by major products and services


	For the three months ended March 31,
	2018		2017*

Hardware products	$	17,491	$	21,744
Software licenses		16,003		9,816
Subscription		2,970		2,115
Professional services		964		961
Maintenance, support and other		8,004		7,329

Total Revenue	$	45,432	$	41,965

* Prior period amounts are presented under ASC 605 and 985-605

Revenue by location of customer


	EMEA			Americas			APAC			Total

Total Revenue:
2018	$	18,387		$	15,921		$	11,124		$	45,432
2017*	$	18,370		$	12,124		$	11,471		$	41,965



Percent of Total:
2018		40	%		35	%		25	%		100	%
2017*		44	%		29	%		27	%		100	%
* Prior period amounts are presented under ASC 605 and 985-605

Timing of revenue recognition


	For the three months ended March 31,
	2018

Products and Licenses transferred at a point in time	$	33,494
Services transferred over time		11,938

Total Revenue	$	45,432

Summary of impacts of adopting Topic 606 on the Company's consolidated financial statements

The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements for the three months ended March 31, 2018.

Balance Sheet


	As of March 31, 2018
	As Reported		Adjustments		Balances without the adoption of Topic 606

ASSETS
Current assets
Accounts receivable, net of allowance	$	34,445	$	(276)	$	34,169
Contract asset		4,874		(4,874)		-
Other current assets		4,547		302		4,849
Total current assets		228,285		(4,848)		223,437
Deferred income taxes		4,975		507		5,482
Contract asset - non-current		7,488		(7,488)		—
Other assets		7,062		(30)		7,032
Total assets	$	346,868	$	(11,859)	$	335,009
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Deferred revenue	$	30,433	$	5,468	$	35,901
Short-term income taxes payable		1,435		(1,942)		(507)
Total current liabilities		57,352		3,526		60,878
Deferred revenue - non-current		6,773		89		6,862
Deferred income taxes		8,169		(424)		7,745
Total liabilities		92,642		3,191		95,833
Stockholders' equity
Accumulated income		170,319		(15,050)		155,269
Total stockholders' equity		254,226		(15,050)		239,176
Total liabilities and stockholders' equity	$	346,868	$	(11,859)	$	335,009

Statement of Operations


	For the three-months ended March 31, 2018
	As Reported		Adjustments		Balances without the adoption of Topic 606

Revenue
Product and license	$	33,494	$	(2,447)	$	31,047
Services and other		11,938		(698)		11,240
Total revenue		45,432		(3,145)		42,287

Cost of goods sold
Product and license		8,185		393		8,578
Services and other		2,550		—		2,550
Total Cost of goods sold		10,735		393		11,128

Gross profit		34,697		(3,538)		31,159

Operating Costs
Sales and marketing		14,277		382		14,659
Total operating costs		33,049		382		33,431

Operating income (loss)		1,648		(3,920)		(2,272)

Income before taxes		2,421		(3,920)		(1,499)

Provision for income tax		629		(1,019)		(390)

Net income (loss)	$	1,792	$	(2,901)	$	(1,109)

Basic EPS	$	0.04			$	(0.03)
Diluted EPS	$	0.04			$	(0.03)

Schedule of receivables, contract assets and contract liabilities

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.


	January 1,			March 31,
	2018			2018
Receivables, inclusive of trade and unbilled	$	48,217	$		34,445
Contract Assets (current and non-current)	$	8,167	$		12,362
Contract Liabilities (Deferred Revenue current and non-current)	$	33,752	$		37,207

Schedule of estimated revenue expected to be recognized in the future


	2018		2019		2020		Beyond 2020		Total

Future revenue related to current unsatisfied performance obligations	$	7,242	$	5,977	$	3,064	$	2,654	$	18,937

The following tables provides information related to the capitalized costs and amortization recognized in the period:


		Three months ended
in thousands		March 31, 2018
Capitalized costs to obtain contracts, current	$	296
Capitalized costs to obtain contracts, non-current	$	1,540


		Three months ended
in thousands		March 31, 2018
Amortization of capitalized costs to obtain contracts	$	65
Impairments of capitalized costs to obtain contracts	$	-

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2018

Intangible Assets

Schedule of finite-lived intangible assets

Intangible asset activity for the three months ended March 31, 2018 is detailed in the following table.


	Acquired		Customer				Total Intangible
	Technology		Relationships		Other		Assets
Net balance at December 31, 2017	$	6,946	$	22,544	$	8,398	$	37,888
Additions-Other		—		—		36		36
Disposals-Other		—		—		—		—
Net foreign currency translation		5		1		4		10
Amortization expense		(1,109)		(604)		(488)		(2,201)
Net balance at March 31, 2018	$	5,842	$	21,941	$	7,950	$	35,733

March 31, 2018 balance at cost	$	37,349	$	27,864	$	13,427	$	78,640
Accumulated amortization		(31,507)		(5,923)		(5,477)		(42,907)
Net balance at March 31, 2018	$	5,842	$	21,941	$	7,950	$	35,733

Schedule of indefinite-lived intangible assets

Intangible asset activity for the three months ended March 31, 2018 is detailed in the following table.


	Acquired		Customer				Total Intangible
	Technology		Relationships		Other		Assets
Net balance at December 31, 2017	$	6,946	$	22,544	$	8,398	$	37,888
Additions-Other		—		—		36		36
Disposals-Other		—		—		—		—
Net foreign currency translation		5		1		4		10
Amortization expense		(1,109)		(604)		(488)		(2,201)
Net balance at March 31, 2018	$	5,842	$	21,941	$	7,950	$	35,733

March 31, 2018 balance at cost	$	37,349	$	27,864	$	13,427	$	78,640
Accumulated amortization		(31,507)		(5,923)		(5,477)		(42,907)
Net balance at March 31, 2018	$	5,842	$	21,941	$	7,950	$	35,733

Revenue - Impacts on financial statements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017
Pro forma Balance Sheet:
Accounts receivable, net of allowances of $809 in 2018 and $520 in 2017	$ 34,445			$ 48,126
Contract assets	4,874
Other current assets	4,547			5,501
Total current assets	228,285			227,937
Deferred income taxes	4,975			5,460
Contract asset - non-current	7,488
Other assets	7,062			5,229
Total assets	346,868			337,622
Deferred revenue	30,433			33,295
Short-term income taxes payable	1,435			3,673
Deferred compensation	395			1,652
Total current liabilities	57,352			66,153
Deferred revenue - non-current	6,773			7,019
Deferred income taxes	8,169			7,753
Total liabilities	92,642			99,692
Accumulated income	170,319			156,151
Total stockholders' equity	254,226			237,930
Total liabilities and stockholders' equity	346,868			$ 337,622
Pro format Income Statement:
Revenue	45,432	$ 41,965
Total revenue	45,432	41,965
Cost of goods sold	8,185
Total cost of goods sold	10,735	12,053
Gross profit	34,697	29,912
Sales and marketing	14,277	13,702
Total operating costs	33,049	29,610
Operating income	1,648	302
Income before taxes	2,421	806
Provision for income taxes	629	233
Net income	$ 1,792	$ 573
Basic (in dollars per share)	$ 0.04	$ 0.01
Diluted (in dollars per share)	$ 0.04	$ 0.01
ASU 2014-09
Pro forma Balance Sheet:
Accumulated income			$ 12,371
ASU 2014-09 \| Adjustments
Pro forma Balance Sheet:
Accounts receivable, net of allowances of $809 in 2018 and $520 in 2017	$ (276)
Contract assets	(4,874)
Other current assets	302
Total current assets	(4,848)
Deferred income taxes	507
Contract asset - non-current	(7,488)
Other assets	(30)
Total assets	(11,859)
Deferred revenue	5,468
Short-term income taxes payable	(1,942)
Total current liabilities	3,526
Deferred revenue - non-current	89
Deferred income taxes	(424)
Total liabilities	3,191
Accumulated income	(15,050)
Total stockholders' equity	(15,050)
Total liabilities and stockholders' equity	(11,859)
Pro format Income Statement:
Total revenue	(3,145)
Cost of goods sold	393
Total cost of goods sold	393
Gross profit	(3,538)
Sales and marketing	382
Total operating costs	382
Operating income	(3,920)
Income before taxes	(3,920)
Provision for income taxes	(1,019)
Net income	(2,901)
ASU 2014-09 \| Balances without the adoption of Topic 606
Pro forma Balance Sheet:
Accounts receivable, net of allowances of $809 in 2018 and $520 in 2017	34,169
Other current assets	4,849
Total current assets	223,437
Deferred income taxes	5,482
Other assets	7,032
Total assets	335,009
Deferred revenue	35,901
Short-term income taxes payable	(507)
Total current liabilities	60,878
Deferred revenue - non-current	6,862
Deferred income taxes	7,745
Total liabilities	95,833
Accumulated income	155,269
Total stockholders' equity	239,176
Total liabilities and stockholders' equity	335,009
Pro format Income Statement:
Total revenue	42,287
Cost of goods sold	8,578
Total cost of goods sold	11,128
Gross profit	31,159
Sales and marketing	14,659
Total operating costs	33,431
Operating income	(2,272)
Income before taxes	(1,499)
Provision for income taxes	(390)
Net income	$ (1,109)
Basic (in dollars per share)	$ (0.03)
Diluted (in dollars per share)	$ (0.03)
Product and license
Pro format Income Statement:
Revenue	$ 33,494	$ 31,561
Cost of goods sold	8,185	9,540
Product and license \| ASU 2014-09 \| Adjustments
Pro format Income Statement:
Revenue	(2,447)
Product and license \| ASU 2014-09 \| Balances without the adoption of Topic 606
Pro format Income Statement:
Revenue	31,047
Service and other
Pro format Income Statement:
Revenue	11,938	10,404
Cost of goods sold	2,550	$ 2,513
Service and other \| ASU 2014-09 \| Adjustments
Pro format Income Statement:
Revenue	(698)
Service and other \| ASU 2014-09 \| Balances without the adoption of Topic 606
Pro format Income Statement:
Revenue	11,240
Cost of goods sold	$ 2,550

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts	$ 809	$ 520
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	40,312,000	40,312,000
Common stock, shares outstanding	40,086,000	40,086,000

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss)	$ 1,792	$ 573
Other Comprehensive income:
Cumulative translation adjustment, net	1,318	644
Pension adjustment, net	(12)	(5)
Comprehensive income	$ 3,122	$ 1,222

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2018
Income Taxes
Income Taxes	Note 6 – Income Taxes Our estimated annual tax rate for 2018 before discrete items is expected to be 26%. This is higher than the U.S. statutory rate of 21% primarily due to due earnings taxed in jurisdictions with higher tax rates than the U.S. and the impact of foreign earnings being taxable in the U.S., partially offset by income in foreign jurisdictions taxed at lower rates. Our ultimate tax rate will depend on the mix of earnings in various jurisdictions. At December 31, 2017, we had deferred tax assets of $20,864 resulting from foreign and state NOL carryforwards of $120,457 and other foreign deductible carryforwards of $31,161. At December 31, 2017, we had a valuation allowance of $12,805 against deferred tax assets related to certain carryforwards. Income taxes paid during the three months ended March 31, 2018 was $3,810. Certain of our non-U.S. operations have incurred net operating losses (NOLs), which may become deductible to the extent these operations become profitable. For each of our operations, we evaluate whether it is more likely than not that the tax benefits related to NOLs will be realized. As part of this evaluation, we consider evidence such as tax planning strategies, historical operating results, forecasted taxable income, and recent financial performance. In the year that certain non-U.S. operations record a loss, we do not recognize a corresponding tax benefit, thus increasing our effective tax rate. Upon determining that it is more likely than not that the NOLs will be realized, we reduce the tax valuation allowances related to these NOLs, which results in a reduction to our income tax expense and our effective tax rate in the period. U.S. tax reform (“the Act”) was enacted on December 22, 2017. Among other things, the Act reduces the U.S. federal corporate tax rate from 35% to 21% and requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred. We have reasonably estimated the effects of the Act and recorded provisional amounts in the fourth quarter of 2017 for the transition tax and to remeasure our U.S. federal deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%, and for the one-time transition tax. The U.S. Government and state tax authorities are expected to continue to issue guidance regarding the Act, which may result in adjustments to our provisional estimates. For the first quarter of 2018, we have not recorded any measurement period adjustments to the provisional estimates recorded at the end of 2017. The final determination of the remeasurement of our net deferred tax assets and the transition tax will be completed as additional information becomes available, but no later than one year from the enactment date. Any subsequent adjustments to the provisional amounts will be recorded to current or deferred tax expense in the quarter of 2018 when the analysis is complete.

Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Property and Equipment
Depreciation	$ 500	$ 400
Minimum
Property and Equipment
Useful life (in years)	3 years
Maximum
Property and Equipment
Useful life (in years)	7 years

Summary of Significant Accounting Policies - Software Development Costs (Details)	3 Months Ended
	Mar. 31, 2018 USD ($)
Software Development Costs
Software development costs capitalized	$ 0
Capitalized Technology \| Minimum
Software Development Costs
Estimated useful lives of assets	2 years
Capitalized Technology \| Maximum
Software Development Costs
Estimated useful lives of assets	5 years

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Mar. 31, 2018	Dec. 31, 2017
Revenue Recognition
Accumulated income		$ 170,319	$ 156,151
ASU 2014-09
Revenue Recognition
Accumulated income	$ 12,371
Revenues	$ 3,145

Summary of Significant Accounting Policies - Long Term Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017
Other Assets
Long Term Investments
Long Term Investments	$ 4,813	$ 4,361

Summary of Significant Accounting Policies - Goodwill and Other Intangibles (Details)	3 Months Ended
	Mar. 31, 2018
Patents
Goodwill and Other Intangibles
Estimated useful lives of assets	20 years
Minimum \| Proprietary Technology
Goodwill and Other Intangibles
Estimated useful lives of assets	3 years
Minimum \| Customer Relationships
Goodwill and Other Intangibles
Estimated useful lives of assets	5 years
Maximum \| Proprietary Technology
Goodwill and Other Intangibles
Estimated useful lives of assets	7 years
Maximum \| Customer Relationships
Goodwill and Other Intangibles
Estimated useful lives of assets	12 years

Summary of Significant Accounting Policies - Warranty (Details)	3 Months Ended
	Mar. 31, 2018
Minimum
Warranty
Standard product warranty period	1 year
Extended product warranty period	1 year
Maximum
Warranty
Standard product warranty period	2 years
Extended product warranty period	4 years

Revenue - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Total Revenue	$ 45,432	$ 41,965
Percent of Total	100.00%	100.00%
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Total Revenue	$ 33,494
Transferred over time
Disaggregation of Revenue [Line Items]
Total Revenue	11,938
EMEA
Disaggregation of Revenue [Line Items]
Total Revenue	$ 18,387	$ 18,370
Percent of Total	40.00%	44.00%
Americas
Disaggregation of Revenue [Line Items]
Total Revenue	$ 15,921	$ 12,124
Percent of Total	35.00%	29.00%
APAC
Disaggregation of Revenue [Line Items]
Total Revenue	$ 11,124	$ 11,471
Percent of Total	25.00%	27.00%
Hardware products
Disaggregation of Revenue [Line Items]
Total Revenue	$ 17,491	$ 21,744
Software licenses
Disaggregation of Revenue [Line Items]
Total Revenue	16,003	9,816
SaaS
Disaggregation of Revenue [Line Items]
Total Revenue	2,970	2,115
Services
Disaggregation of Revenue [Line Items]
Total Revenue	964	961
Maintenance, support and other
Disaggregation of Revenue [Line Items]
Total Revenue	8,004	7,329
Product and license
Disaggregation of Revenue [Line Items]
Total Revenue	$ 33,494	$ 31,561

Revenue - Performance Obligations (Details) $ in Thousands	3 Months Ended
Revenue - Performance Obligations (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Revenue, Performance Obligation [Abstract]
Future revenue related to current unsatisfied performance obligations	$ 18,937
Revenue, Practical Expedient, Remaining Performance Obligation [true/false]	true
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true/false]	true
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01
Revenue, Performance Obligation [Abstract]
Future revenue related to current unsatisfied performance obligations	$ 7,242
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Performance Obligation [Abstract]
Future revenue related to current unsatisfied performance obligations	$ 5,977
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Performance Obligation [Abstract]
Future revenue related to current unsatisfied performance obligations	$ 3,064
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Performance Obligation [Abstract]
Future revenue related to current unsatisfied performance obligations	$ 2,654
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months

Revenue - Capitalized Costs and Amortization (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Capitalized Contract Cost [Abstract]
Capitalized Contract Cost, Amortization Period	7 years
Capitalized costs to obtain contracts, current	$ 296
Capitalized costs to obtain contracts, non-current	1,540
Amortization of capitalized costs to obtain contracts	$ 65

Inventories - Summary of Inventories, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventories, net
Component parts	$ 4,932	$ 4,691
Work-in-process and finished goods	6,572	7,349
Total	$ 11,504	$ 12,040

Goodwill - Schedule of Goodwill Activity (Details) - USD ($) $ in Thousands	3 Months Ended	15 Months Ended
	Mar. 31, 2018	Mar. 31, 2018
Goodwill
Net balance at beginning of period	$ 56,332
Additions	0	$ 0
Net foreign currency translation	693
Net balance at end of period	$ 57,025	$ 57,025

Income Taxes - Additional Information (Details)		3 Months Ended	12 Months Ended
Income Taxes - Additional Information (Details)	Jan. 01, 2018	Mar. 31, 2018	Dec. 31, 2017
Income Taxes
Effective tax rate		26.00%
Statutory tax rate	21.00%	21.00%	35.00%

Income Taxes - Foreign Tax Credit Carryforwards (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Deferred tax assets, operating loss, and other carryforwards
Deferred tax assets, foreign and state NOL		$ 20,864
Net operating loss (NOL) carryforwards		120,457
Deferred tax assets, valuation allowance		12,805
Income taxes paid	$ 3,810
Foreign tax credit carryforwards
Deferred tax assets, operating loss, and other carryforwards
Other deductible carryforwards		$ 31,161

Long-Term Compensation Plan and Stock Based Compensation - Additional Information (Details) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) shares
Restricted Stock, subject to performance criteria
Long-Term Compensation Plan and Stock Based Compensation
Unissued shares	161
Restricted Stock, subject to time-based criteria
Long-Term Compensation Plan and Stock Based Compensation
Stock based compensation awards issued shares	163
2009 Equity Incentive Plan \| Restricted Stock
Long-Term Compensation Plan and Stock Based Compensation
Stock based compensation Awards	324
2009 Equity Incentive Plan \| Restricted Stock, subject to performance criteria
Long-Term Compensation Plan and Stock Based Compensation
Unissued shares	161
Vesting period (in years)	3 years
Fair value of nonvested awards \| $	$ 2,280
2009 Equity Incentive Plan \| Restricted Stock, subject to time-based criteria
Long-Term Compensation Plan and Stock Based Compensation
Stock based compensation awards issued shares	163
Restricted stock awards, fair value \| $	$ 2,299
2009 Equity Incentive Plan \| Restricted Stock, subject to time-based criteria \| Minimum
Long-Term Compensation Plan and Stock Based Compensation
Vesting period (in years)	1 year
2009 Equity Incentive Plan \| Restricted Stock, subject to time-based criteria \| Maximum
Long-Term Compensation Plan and Stock Based Compensation
Vesting period (in years)	4 years

Long-Term Compensation Plan and Stock Based Compensation - Allocation of Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Compensation expense
Restricted Stock or Unit Expense	$ 800	$ 544
Deferred Compensation Arrangement with Individual, Compensation Expense	552	556
Total Compensation	$ 1,352	$ 1,100

Common Stock and Earnings Per Share - Additional Information (Details) - 2009 Equity Incentive Plan	3 Months Ended
	Mar. 31, 2018 shares
Long-Term Compensation Plan and Stock Based Compensation
Shares awarded	163
Restricted Stock
Long-Term Compensation Plan and Stock Based Compensation
Shares awarded	16,000

Common Stock and Earnings per Share - Details of Earnings Per Share Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Common Stock and Earnings per Share
Net income	$ 1,792	$ 573
Weighted average common shares outstanding:
Basic (in shares)	39,910	39,760
Incremental shares with dilutive effect:
Incremental shares with dilutive effect (in shares)	149	10
Diluted (in shares)	40,059	39,770
Basic (in dollars per share)	$ 0.04	$ 0.01
Diluted (in dollars per share)	$ 0.04	$ 0.01

Contingencies - Regulatory Actions (Details) - Office of Foreign Assets Control - USD ($)		12 Months Ended
	Jan. 13, 2016	Dec. 31, 2015
Contingencies
Transaction period under review	5 years
Potential monetary penalties accrued		$ 900,000
Minimum
Contingencies
Range of potential penalties assessed	$ 0

Contingencies - Indemnification and loss contingencies (Details) - USD ($)	Jan. 13, 2016	Sep. 01, 2015	Mar. 31, 2018
Contingencies
Number of days allowed to file amended complaint		60 days
Indemnification clauses
Contingencies
Liabilities accrued			$ 0
Office of Foreign Assets Control
Contingencies
Transaction period under review	5 years
Office of Foreign Assets Control \| Minimum
Contingencies
Range of potential penalties assessed	$ 0