Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | CSG SYSTEMS INTERNATIONAL, INC. | |
Entity Central Index Key | 0001005757 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2021 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CSGS | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,645,848 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 0-27512 | |
Entity Tax Identification Number | 47-0783182 | |
Entity Address, Address Line One | 6175 S. Willow Drive | |
Entity Address, Address Line Two | 10th Floor | |
Entity Address, City or Town | Greenwood Village | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80111 | |
City Area Code | (303) | |
Local Phone Number | 200-2000 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 195,365 | $ 188,699 |
Short-term investments | 29,175 | 51,598 |
Total cash, cash equivalents and short-term investments | 224,540 | 240,297 |
Settlement and merchant reserve assets | 158,925 | 166,031 |
Trade accounts receivable: | ||
Billed, net of allowance of $3,157 and $3,628 | 243,160 | 226,623 |
Unbilled | 38,099 | 37,785 |
Income taxes receivable | 3,889 | 2,167 |
Other current assets | 53,104 | 41,688 |
Total current assets | 721,717 | 714,591 |
Non-current assets: | ||
Property and equipment, net of depreciation of $110,862 and $105,073 | 76,725 | 81,759 |
Operating lease right-of-use assets | 96,101 | 110,756 |
Intangible assets | 83,728 | 74,465 |
Goodwill | 313,246 | 272,322 |
Customer contract costs, net of amortization of $50,700 and $39,893 | 47,249 | 47,238 |
Deferred income taxes | 9,156 | 10,205 |
Other assets | 16,834 | 20,664 |
Total non-current assets | 643,039 | 617,409 |
Total assets | 1,364,756 | 1,332,000 |
Current liabilities: | ||
Current portion of long-term debt, net of unamortized discounts of $930 and zero | 236,570 | 14,063 |
Operating lease liabilities | 23,609 | 22,651 |
Customer deposits | 32,232 | 39,992 |
Trade accounts payable | 32,080 | 29,834 |
Accrued employee compensation | 93,125 | 86,289 |
Settlement and merchant reserve liabilities | 157,308 | 165,064 |
Deferred revenue | 64,252 | 52,357 |
Income taxes payable | 2,192 | 6,627 |
Other current liabilities | 21,873 | 19,383 |
Total current liabilities | 663,241 | 436,260 |
Non-current liabilities: | ||
Long-term debt, net of unamortized discounts of $3,595 and $5,346 | 138,905 | 337,154 |
Operating lease liabilities | 80,373 | 95,926 |
Deferred revenue | 14,006 | 17,275 |
Income taxes payable | 2,445 | 2,436 |
Deferred income taxes | 6,700 | 5,109 |
Other non-current liabilities | 15,462 | 15,445 |
Total non-current liabilities | 257,891 | 473,345 |
Total liabilities | 921,132 | 909,605 |
Stockholders' equity: | ||
Preferred stock, par value $.01 per share; 10,000 shares authorized; zero shares issued and outstanding | ||
Common stock, par value $.01 per share; 100,000 shares authorized; 32,687 and 32,713 shares outstanding | 704 | 700 |
Additional paid-in capital | 482,387 | 470,557 |
Treasury stock, at cost; 36,418 and 35,980 shares | (914,274) | (894,126) |
Accumulated other comprehensive income (loss): | ||
Unrealized gains on short-term investments, net of tax | 3 | 13 |
Cumulative foreign currency translation adjustments | (35,786) | (31,151) |
Accumulated earnings | 906,955 | 876,402 |
Total CSG stockholders' equity | 439,989 | 422,395 |
Noncontrolling interest | 3,635 | |
Total stockholders' equity | 443,624 | 422,395 |
Total liabilities and stockholders' equity | 1,364,756 | 1,332,000 |
Software | ||
Non-current assets: | ||
Intangible assets | 28,696 | 26,453 |
Acquired customer contracts | ||
Non-current assets: | ||
Intangible assets | $ 55,032 | $ 48,012 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Trade accounts receivable-billed, allowance | $ 3,157 | $ 3,628 |
Property and equipment, accumulated depreciation | 110,862 | 105,073 |
Intangibles, accumulated amortization | 260,269 | 245,614 |
Customer costs, accumulated amortization | 50,700 | 39,893 |
Current portion of long-term debt, unamortized discounts | 930 | 0 |
Long-term debt, unamortized discounts | $ 3,595 | $ 5,346 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 32,687,000 | 32,713,000 |
Treasury stock, shares | 36,418,000 | 35,980,000 |
Software | ||
Intangibles, accumulated amortization | $ 148,667 | $ 139,836 |
Acquired customer contracts | ||
Intangibles, accumulated amortization | $ 111,602 | $ 105,778 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 263,209 | $ 244,108 | $ 771,462 | $ 730,046 |
Cost of revenue (exclusive of depreciation, shown separately below) | 134,705 | 131,073 | 401,185 | 400,432 |
Other operating expenses: | ||||
Research and development | 34,384 | 30,425 | 99,350 | 90,025 |
Selling, general and administrative | 54,923 | 47,032 | 152,988 | 136,415 |
Depreciation | 6,225 | 5,817 | 18,604 | 17,016 |
Restructuring and reorganization charges | 209 | 814 | 3,029 | 4,277 |
Total operating expenses | 230,446 | 215,161 | 675,156 | 648,165 |
Operating income | 32,763 | 28,947 | 96,306 | 81,881 |
Other income (expense): | ||||
Interest expense | (3,636) | (3,641) | (10,861) | (11,894) |
Amortization of original issue discount | (794) | (751) | (2,350) | (2,221) |
Interest and investment income, net | 78 | 254 | 286 | 1,086 |
Other, net | (5,875) | (2,067) | (6,530) | (3,184) |
Total other | (10,227) | (6,205) | (19,455) | (16,213) |
Income before income taxes | 22,536 | 22,742 | 76,851 | 65,668 |
Income tax provision | (6,406) | (9,176) | (21,769) | (20,222) |
Net income | $ 16,130 | $ 13,566 | $ 55,082 | $ 45,446 |
Weighted-average shares outstanding: | ||||
Basic | 31,756 | 32,115 | 31,825 | 32,070 |
Diluted | 31,960 | 32,273 | 32,033 | 32,296 |
Earnings per common share: | ||||
Basic | $ 0.51 | $ 0.42 | $ 1.73 | $ 1.42 |
Diluted | $ 0.50 | $ 0.42 | $ 1.72 | $ 1.41 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 16,130 | $ 13,566 | $ 55,082 | $ 45,446 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (6,492) | 7,667 | (4,635) | (4,746) |
Unrealized holding gains (losses) on short-term investments arising during period | 3 | (14) | (10) | 14 |
Other comprehensive income (loss), net of tax | (6,489) | 7,653 | (4,645) | (4,732) |
Total comprehensive income, net of tax | $ 9,641 | $ 21,219 | $ 50,437 | $ 40,714 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings | Noncontrolling Interest |
Balance, beginning of period at Dec. 31, 2019 | $ 396,662 | $ 696 | $ 454,663 | $ (867,817) | $ (39,503) | $ 848,623 | |
Balance, beginning of period, shares at Dec. 31, 2019 | 32,891 | ||||||
Net income | 21,514 | ||||||
Unrealized gain on short-term investments, net of tax | (24) | ||||||
Foreign currency translation adjustments | (15,084) | ||||||
Total comprehensive income, net of tax | 6,406 | ||||||
Repurchase of common stock | (13,965) | $ (2) | (7,555) | (6,408) | |||
Repurchase of common stock, shares | (299) | ||||||
Issuance of common stock pursuant to employee stock purchase plan | 564 | 564 | |||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 14 | ||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 5 | (5) | |||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 476 | ||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (7) | ||||||
Stock-based compensation expense | 4,857 | 4,857 | |||||
Dividends | (7,693) | (7,693) | |||||
Balance, ending of period at Mar. 31, 2020 | 386,831 | $ 699 | 452,524 | (874,225) | (54,611) | 862,444 | |
Balance, ending of period, shares at Mar. 31, 2020 | 33,075 | ||||||
Balance, beginning of period at Dec. 31, 2019 | 396,662 | $ 696 | 454,663 | (867,817) | (39,503) | 848,623 | |
Balance, beginning of period, shares at Dec. 31, 2019 | 32,891 | ||||||
Net income | 45,446 | ||||||
Unrealized gain on short-term investments, net of tax | 14 | ||||||
Foreign currency translation adjustments | (4,746) | ||||||
Total comprehensive income, net of tax | 40,714 | ||||||
Balance, ending of period at Sep. 30, 2020 | 409,927 | $ 701 | 462,775 | (880,162) | (44,235) | 870,848 | |
Balance, ending of period, shares at Sep. 30, 2020 | 33,125 | ||||||
Balance, beginning of period at Mar. 31, 2020 | 386,831 | $ 699 | 452,524 | (874,225) | (54,611) | 862,444 | |
Balance, beginning of period, shares at Mar. 31, 2020 | 33,075 | ||||||
Net income | 10,366 | ||||||
Unrealized gain on short-term investments, net of tax | 52 | ||||||
Foreign currency translation adjustments | 2,671 | ||||||
Total comprehensive income, net of tax | 13,089 | ||||||
Repurchase of common stock | (467) | (100) | (367) | ||||
Repurchase of common stock, shares | (11) | ||||||
Issuance of common stock pursuant to employee stock purchase plan | 683 | 683 | |||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 18 | ||||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 12 | ||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (14) | ||||||
Stock-based compensation expense | 5,255 | 5,255 | |||||
Dividends | (7,769) | (7,769) | |||||
Balance, ending of period at Jun. 30, 2020 | 397,622 | $ 699 | 458,362 | (874,592) | (51,888) | 865,041 | |
Balance, ending of period, shares at Jun. 30, 2020 | 33,080 | ||||||
Net income | 13,566 | 13,566 | |||||
Unrealized gain on short-term investments, net of tax | (14) | (14) | |||||
Foreign currency translation adjustments | 7,667 | 7,667 | |||||
Total comprehensive income, net of tax | 21,219 | ||||||
Repurchase of common stock | (5,722) | (152) | (5,570) | ||||
Repurchase of common stock, shares | (143) | ||||||
Issuance of common stock pursuant to employee stock purchase plan | 591 | 591 | |||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 16 | ||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 2 | (2) | |||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 183 | ||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (11) | ||||||
Stock-based compensation expense | 3,976 | 3,976 | |||||
Dividends | (7,759) | (7,759) | |||||
Balance, ending of period at Sep. 30, 2020 | 409,927 | $ 701 | 462,775 | (880,162) | (44,235) | 870,848 | |
Balance, ending of period, shares at Sep. 30, 2020 | 33,125 | ||||||
Balance, beginning of period at Dec. 31, 2020 | $ 422,395 | $ 700 | 470,557 | (894,126) | (31,138) | 876,402 | |
Balance, beginning of period, shares at Dec. 31, 2020 | 32,713 | 32,713 | |||||
Net income | 19,631 | ||||||
Unrealized gain on short-term investments, net of tax | (6) | ||||||
Foreign currency translation adjustments | (355) | ||||||
Total comprehensive income, net of tax | $ 19,270 | ||||||
Repurchase of common stock | (11,721) | $ (1) | (5,202) | (6,518) | |||
Repurchase of common stock, shares | (252) | ||||||
Issuance of common stock pursuant to employee stock purchase plan | 619 | 619 | |||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 16 | ||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | $ 5 | (5) | |||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 487 | ||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (1) | ||||||
Stock-based compensation expense | 5,395 | 5,395 | |||||
Dividends | (8,243) | (8,243) | |||||
Balance, ending of period at Mar. 31, 2021 | 427,715 | $ 704 | 471,364 | (900,644) | (31,499) | 887,790 | |
Balance, ending of period, shares at Mar. 31, 2021 | 32,963 | ||||||
Balance, beginning of period at Dec. 31, 2020 | $ 422,395 | $ 700 | 470,557 | (894,126) | (31,138) | 876,402 | |
Balance, beginning of period, shares at Dec. 31, 2020 | 32,713 | 32,713 | |||||
Net income | $ 55,082 | ||||||
Unrealized gain on short-term investments, net of tax | (10) | ||||||
Foreign currency translation adjustments | (4,635) | ||||||
Total comprehensive income, net of tax | 50,437 | ||||||
Balance, ending of period at Sep. 30, 2021 | $ 443,624 | $ 704 | 482,387 | (914,274) | (35,783) | 906,955 | $ 3,635 |
Balance, ending of period, shares at Sep. 30, 2021 | 32,687 | 32,687 | |||||
Balance, beginning of period at Mar. 31, 2021 | $ 427,715 | $ 704 | 471,364 | (900,644) | (31,499) | 887,790 | |
Balance, beginning of period, shares at Mar. 31, 2021 | 32,963 | ||||||
Net income | 19,321 | ||||||
Unrealized gain on short-term investments, net of tax | (7) | ||||||
Foreign currency translation adjustments | 2,212 | ||||||
Total comprehensive income, net of tax | 21,526 | ||||||
Repurchase of common stock | (7,049) | (92) | (6,957) | ||||
Repurchase of common stock, shares | (156) | ||||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 19 | ||||||
Issuance of restricted common stock pursuant to stock-based compensation plans | 716 | 716 | |||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 6 | ||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (35) | ||||||
Stock-based compensation expense | 5,022 | 5,022 | |||||
Dividends | (8,150) | (8,150) | |||||
Balance, ending of period at Jun. 30, 2021 | 439,780 | $ 704 | 477,010 | (907,601) | (29,294) | 898,961 | |
Balance, ending of period, shares at Jun. 30, 2021 | 32,797 | ||||||
Net income | 16,130 | 16,130 | |||||
Unrealized gain on short-term investments, net of tax | 3 | 3 | |||||
Foreign currency translation adjustments | (6,492) | (6,492) | |||||
Total comprehensive income, net of tax | 9,641 | ||||||
Repurchase of common stock | (6,774) | (101) | (6,673) | ||||
Repurchase of common stock, shares | (145) | ||||||
Issuance of common stock pursuant to employee stock purchase plan | 591 | 591 | |||||
Issuance of common stock pursuant to employee stock purchase plan, shares | 15 | ||||||
Issuance of restricted common stock pursuant to stock-based compensation plans, shares | 56 | ||||||
Cancellation of restricted common stock issued pursuant to stock-based compensation plans, shares | (36) | ||||||
Stock-based compensation expense | 4,887 | 4,887 | |||||
Dividends | (8,136) | (8,136) | |||||
Noncontrolling interest related to business combination | 3,635 | 3,635 | |||||
Balance, ending of period at Sep. 30, 2021 | $ 443,624 | $ 704 | $ 482,387 | $ (914,274) | $ (35,783) | $ 906,955 | $ 3,635 |
Balance, ending of period, shares at Sep. 30, 2021 | 32,687 | 32,687 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 55,082 | $ 45,446 |
Adjustments to reconcile net income to net cash provided by operating activities- | ||
Depreciation | 18,604 | 17,016 |
Amortization | 34,314 | 32,998 |
Amortization of original issue discount | 2,350 | 2,221 |
Asset impairment | 415 | 10,438 |
(Gain)/loss on short-term investments | 51 | (120) |
Loss on extinguishment of debt | 132 | |
Loss on acquisition of controlling interest | 6,180 | |
Deferred income taxes | 2,188 | 3,844 |
Stock-based compensation | 15,304 | 14,088 |
Changes in operating assets and liabilities, net of acquired amounts: | ||
Trade accounts receivable, net | (11,960) | (13,322) |
Other current and non-current assets and liabilities | (13,912) | (8,784) |
Income taxes payable/receivable | (6,111) | 1,542 |
Trade accounts payable and accrued liabilities | (18,329) | (24,618) |
Deferred revenue | 4,001 | 8,736 |
Net cash provided by operating activities | 88,309 | 116,129 |
Cash flows from investing activities: | ||
Purchases of software, property and equipment | (22,531) | (24,201) |
Purchases of short-term investments | (57,734) | (49,100) |
Proceeds from sale/maturity of short-term investments | 80,092 | 37,743 |
Acquisition of and investments in business, net of cash acquired | (51,111) | (11,491) |
Net cash used in investing activities | (51,284) | (47,049) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 1,926 | 1,838 |
Payment of cash dividends | (24,653) | (23,441) |
Repurchase of common stock | (25,568) | (19,926) |
Proceeds from long-term debt | 150,000 | |
Payments on long-term debt | (126,563) | (7,500) |
Payments of deferred financing costs | (3,000) | |
Settlement and merchant reserve activity | (7,735) | (47,602) |
Net cash used in financing activities | (35,593) | (96,631) |
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (1,872) | (1,653) |
Net decrease in cash, cash equivalents and restricted cash | (440) | (29,204) |
Cash, cash equivalents and restricted cash, beginning of period | 354,730 | 337,654 |
Cash, cash equivalents and restricted cash, end of period | 354,290 | 308,450 |
Cash paid during the period for- | ||
Interest | 11,947 | 12,941 |
Income taxes | 25,688 | 14,756 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 195,365 | 174,489 |
Settlement and merchant reserve assets | 158,925 | 133,961 |
Cash, cash equivalents and restricted cash, end of period | $ 354,290 | $ 308,450 |
General
General | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | 1. GENERAL We have prepared the accompanying unaudited condensed consolidated financial statements as of September 30, 2021 and December 31, 2020, and for the quarters and nine months ended September 30, 2021 and 2020, in accordance with accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”) for interim financial information, and pursuant to the instructions to Form 10-Q and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of our management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial position and operating results have been included. The unaudited Condensed Consolidated Financial Statements (the “Financial Statements”) should be read in conjunction with the Consolidated Financial Statements and notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), contained in our Annual Report on Form 10-K for the year ended December 31, 2020 (our “2020 10-K”), filed with the SEC. The results of operations for the quarter and nine months ended September 30, 2021 are not necessarily indicative of the expected results for the entire year ending December 31, 2021 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates in Preparation of Financial Statements. The preparation of the accompanying Financial Statements in conformity with U.S. GAAP 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 our Financial Statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Reclassifications. Certain amounts for the prior period have been reclassified to conform to the September 30, 2021 presentation. Beginning with the second quarter of 2021, we determined that settlement and merchant reserve assets consist of restricted cash and are now included with cash, cash equivalents and restricted cash when reconciling the beginning-of-period and end-of-period total amounts shown on the condensed consolidated statements of cash flows (the “Statements of Cash Flows”). Historically, we presented the change in settlement and merchant reserve assets and liabilities as part of the changes in operating assets and liabilities on the Statements of Cash Flows. Additionally, cash flows related to our settlement and merchant reserve liabilities have been reclassified from cash flows from operating activities to cash flows from financing activities. Prior period amounts have been reclassified to conform to the current period presentation. These changes have no impact on our previously reported consolidated net income, total assets, including cash and cash equivalents, liabilities, and equity. In addition, these changes have no material impact on our previously reported cash flows from operating activities. Revenue. The majority of our future revenue is related to our revenue management solution customer contracts that include variable consideration dependent upon a series of monthly volumes and/or daily usage of services and have contractual terms ending from 2021 through 2028 . Our customer contracts may include guaranteed minimums and fixed monthly or annual fees. As of September 30, 2021 , our aggregate amount of the transaction price allocated to the remaining performance obligations is approximately $ 900 million, which is made up of fixed fee consideration and guaranteed minimums expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). We expect to recognize approximately 75 % of this amount by the end of 2023 , with the remaining amount recognized by the end of 2028 . We have excluded from this amount variable consideration expected to be recognized in the future related to performance obligations that are unsatisfied. The nature, amount, timing, and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by revenue type, geographic region, and customer vertical. Revenue by type for the quarters and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cloud and related solutions $ 231,418 $ 217,527 $ 686,685 $ 654,027 Software and services 19,518 15,260 49,330 43,502 Maintenance 12,273 11,321 35,447 32,517 Total revenue $ 263,209 $ 244,108 $ 771,462 $ 730,046 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for the quarters and nine months ended September 30, 2021 and 2020 , as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Americas (principally the U.S.) 85 % 86 % 85 % 87 % Europe, Middle East, and Africa 12 % 10 % 11 % 9 % Asia Pacific 3 % 4 % 4 % 4 % Total revenue 100 % 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in other industry markets including financial services, healthcare, media and entertainment companies, and government entities. Revenue by customer vertical for the quarters and nine months ended September 30, 2021 and 2020 , as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Broadband/Cable/Satellite 56 % 59 % 57 % 59 % Telecommunications 20 % 18 % 19 % 18 % Other 24 % 23 % 24 % 23 % Total revenue 100 % 100 % 100 % 100 % Deferred revenue recognized during the quarters ended September 30, 2021 and 2020 was $ 9.9 million and $ 6.1 million, respectively, and during the nine months ended September 30, 2021 and 2020 was $ 41.9 million and $ 33.4 million, respectively. Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of three months or less at the date of the purchase to be cash equivalents. As of September 30, 2021 and December 31, 2020, our cash equivalents consist primarily of institutional money market funds, commercial paper, and time deposits held at major banks. For the cash and cash equivalents denominated in foreign currencies and/or located outside the U.S., we do not anticipate any material amounts being unavailable for use in running our business, but may face limitations on moving cash out of certain foreign jurisdictions due to currency controls and potential negative economic consequences. Restricted Cash. Restricted cash includes cash that is legally or contractually restricted, as well as our settlement and merchant reserve assets. As of September 30, 2021 and December 31, 2020 , we had $ 1.4 million and $ 1.7 million, respectively, of restricted cash that serves to collateralize outstanding letters of credit included in cash and cash equivalents in our Condensed Consolidated Balance Sheets (“Balance Sheets” or “Balance Sheet”). Settlement and Merchant Reserve Assets and Liabilities. Settlement assets and liabilities represent cash collected on behalf of customers via payment processing services which is held for an established holding period until settlement with the customer. The holding period is generally one to four business days depending on the payment model, risk profile, and contractual terms with the customer. During the holding period, cash is held in trust with various major financial institutions and a corresponding liability is recorded for the amounts owed to the merchant. At any given time, there may be differences between the cash held in trust and the corresponding liability due to the timing of operating-related cash transfers. Merchant reserves represent deposits collected from customers to mitigate our risk of loss due to nonperformance of settlement obligations initiated by our customers using our payment processing services, or non-payment by customers for services rendered by us. We perform a credit risk evaluation on each customer based on multiple criteria, which provide the basis for the deposit amount required for each customer. For the duration of our relationship with each customer, we hold their reserve deposits with major financial institutions. We hold these funds in separate accounts and are fully offset by corresponding liabilities. The following table summarizes our settlement and merchant reserve assets and liabilities as of the indicated periods (in thousands): September 30, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Settlement assets/liabilities $ 141,957 $ 140,340 $ 149,785 $ 148,818 Merchant reserve assets/liabilities 16,968 16,968 16,246 16,246 Total $ 158,925 $ 157,308 $ 166,031 $ 165,064 Financial Instruments . Our financial instruments as of September 30, 2021 and December 31, 2020 include cash and cash equivalents, short-term investments, settlement and merchant reserve assets and liabilities, accounts receivable, accounts payable, and debt. Due to their short maturities, the carrying amounts of cash equivalents, settlement and merchant reserve assets and liabilities, accounts receivable, and accounts payable approximate their fair value. Our short-term investments and certain of our cash equivalents are considered “available-for-sale” and are reported at fair value in our Balance Sheets, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Realized and unrealized gains and losses were not material in any period presented. Primarily all short-term investments held by us as of September 30, 2021 and December 31, 2020 have contractual maturities of less than two years from the time of acquisition. Our short-term investments as of September 30, 2021 and December 31, 2020 consisted almost entirely of fixed income securities. Proceeds from the sale/maturity of short-term investments for the nine months ended September 30, 2021 and 2020 were $ 80.1 million and $ 37.7 million, respectively, and purchases of short-term investments for the nine months ended September 30, 2021 and 2020 were $ 57.7 million and $ 49.1 million, respectively. Our short-term investments as of September 30, 2021 and December 31, 2020 were $ 29.2 million and $ 51.6 million, respectively. The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets measured at fair value (in thousands): September 30, 2021 December 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 29,170 $ — $ 29,170 $ 33,535 $ — $ 33,535 Commercial paper — — — — 15,746 15,746 Corporate debt securities — — 1,351 1,351 Short-term investments: Corporate debt securities — 24,565 24,565 — 38,672 38,672 U.S. government agency bonds — — — — 4,642 4,642 Asset-backed securities — 4,610 4,610 — 8,284 8,284 Total $ 29,170 $ 29,175 $ 58,345 $ 33,535 $ 68,695 $ 102,230 Valuation inputs used to measure the fair values of our money market funds were derived from quoted market prices. The fair values of all other financial instruments are based upon pricing provided by third-party pricing services. These prices were derived from observable market inputs. We have chosen not to record our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value (par value for convertible debt) and estimated fair value of our debt as of the indicated periods (in thousands): September 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value 2018 Credit Agreement (carrying value including $ - $ - $ 126,563 $ 126,563 2021 Credit Agreement (carrying value including 150,000 150,000 — — 2016 Convertible debt (par value) 230,000 237,763 230,000 244,663 The fair value for our credit agreement was estimated using a discounted cash flow methodology, while the fair value for our convertible debt was estimated based upon quoted market prices or recent sales activity, both of which are considered Level 2 inputs. Accounting Pronouncement Issued But Not Yet Effective. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. ASU 2020-06 also amends the related Earnings Per Share guidance. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, and can be adopted on either a fully retrospective or modified retrospective basis. We are currently evaluating the method of adoption and overall impact of this standard on our Financial Statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 3. GOODWILL AND INTANGIBLE ASSETS Goodwill. The changes in the carrying amount of goodwill for the nine months ended September 30, 2021 were as follows (in thousands): January 1, 2021 balance $ 272,322 Goodwill acquired during period 42,417 Adjustments related to prior acquisitions ( 45 ) Effects of changes in foreign currency exchange rates ( 1,448 ) September 30, 2021 balance $ 313,246 Goodwill acquired during the period primarily relates to the acquisition of Tango Telecom Limited and Kitewheel, LLC, as well as the additional investment in MobileCard Holdings, LLC. See Note 5 for discussion regarding these acquisitions. Other Intangible Assets. Our other intangible assets subject to ongoing amortization consist primarily of acquired customer contracts and software. As of September 30, 2021 and December 31, 2020, the carrying values of these assets were as follows (in thousands): September 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Acquired customer contracts $ 166,634 $ ( 111,602 ) $ 55,032 $ 153,790 $ ( 105,778 ) $ 48,012 Software 177,363 ( 148,667 ) 28,696 166,289 ( 139,836 ) 26,453 Total intangible assets $ 343,997 $ ( 260,269 ) $ 83,728 $ 320,079 $ ( 245,614 ) $ 74,465 Other intangible assets as of September 30, 2021 include assets acquired in the Tango Telecom Limited and Kitewheel LLC business acquisitions (see Note 5). The total amortization expense related to other intangible assets for the third quarters of 2021 and 2020 were $ 6.5 million and $ 6.3 million, respectively, and for the nine months ended September 30, 2021 and 2020 were $ 18.0 million and $ 18.9 million, respectively. Based on the September 30, 2021 net carrying value of our intangible assets, the estimated total amortization expense for each of the five succeeding fiscal years ending December 31 are: 2021 - $ 24.4 million; 2022 - $ 21.0 million; 2023 - $ 16.7 million; 2024 - $ 11.1 million; and 2025 - $ 9.3 million. Customer Contract Costs . As of September 30, 2021 and December 31, 2020, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands): September 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Customer contract costs $ 97,949 $ ( 50,700 ) $ 47,249 $ 87,131 $ ( 39,893 ) $ 47,238 During the second quarter of 2020, we recorded an impairment charge of $ 10.3 million for the write-off of capitalized customer contract costs related to a discontinued project implementation. This non-cash impairment charge is included primarily in the cost of revenue in our Condensed Consolidated Statements of Income ("Income Statement"). The total amortization expense related to customer contract costs for the third quarters of 2021 and 2020 were $ 5.3 million and $ 4.2 million, respectively, and for the nine months ended September 30, 2021 and 2020 were $ 15.0 million and $ 12.8 million, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 4. DEBT Our long-term debt, as of September 30, 2021 and December 31, 2020, was as follows (in thousands): September 30, December 31, 2021 2020 2021 Credit Agreement: Term loan, due September 2026 , interest at adjusted LIBOR plus 1.375 % (combined rate of 1.51 % at September 30, 2021) $ 150,000 $ - Less – deferred financing costs ( 3,595 ) — 2021 Term Loan, net of unamortized discounts 146,405 — $ 450 million revolving loan facility, due September 2026 , interest at adjusted LIBOR plus applicable margin — — 2018 Credit Agreement: Term loan, due March 2023 , interest at adjusted LIBOR plus 1.5 % (combined rate of 1.75 % at December 31, 2020) — 126,563 Less – deferred financing costs — ( 1,155 ) 2018 Term Loan, net of unamortized discounts — 125,408 $ 200 million revolving loan facility, due March 2023 , interest at adjusted LIBOR plus applicable margin — — 2016 Convertible Notes: Convertible Notes – Senior convertible notes; due March 15, 2036 ; cash interest at 4.25 % 230,000 230,000 Less – unamortized original issue discount ( 671 ) ( 3,021 ) Less – deferred financing costs ( 259 ) ( 1,170 ) 2016 Convertible Notes, net of unamortized discounts 229,070 225,809 Total debt, net of unamortized discounts 375,475 351,217 Current portion of long-term debt, net of unamortized discounts ( 236,570 ) ( 14,063 ) Long-term debt, net of unamortized discounts $ 138,905 $ 337,154 2021 Credit Agreement. On September 13, 2021, we entered into a new $ 600 million credit agreement (the “2021 Credit Agreement”) with a consortium of banks to replace our $ 350 million credit agreement (“2018 Credit Agreement”). The 2021 Credit Agreement provides borrowings in the form of: (i) a $ 150 million aggregate principal five-year term loan (the “2021 Term Loan”); and (ii) a $ 450 million aggregate principal five-year revolving loan facility (the “2021 Revolver”). With the $ 150 million proceeds from the 2021 Term Loan, we repaid the outstanding $ 120 million balance of the term loan under the 2018 Credit Agreement, resulting in a net increase of available cash by $ 30 million, a portion of which we used to pay certain fees and expenses in connection with the refinancing, and the remainder of which will be used for general corporate purposes. The interest rates under the 2021 Credit Agreement are based upon our choice of an adjusted LIBOR rate plus an applicable margin of 1.375 % - 2.125 %, or an alternate base rate (“ABR”) plus an applicable margin of 0.375 % - 1.125 %, with the applicable margin, depending on our then-net secured total leverage ratio. We will pay a commitment fee of 0.150 % - 0.325 % of the average daily unused amount of the 2021 Revolver, with the commitment fee rate also dependent upon our then-net secured total leverage ratio. The 2021 Credit Agreement includes LIBOR transition language in which we can elect an ABR, a Eurodollar rate, an alternate currency term rate, or an alternate currency daily rate. The 2021 Credit Agreement contains customary affirmative covenants. In addition, the 2021 Credit Agreement has customary negative covenants that places limits on our ability to: (i) incur additional indebtedness; (ii) create liens on its property; (iii) make investments; (iv) enter into mergers and consolidations; (v) sell assets; (vi) declare dividends or repurchase shares; (vii) engage in certain transactions with affiliates; and (viii) prepay certain indebtedness; and (ix) issue capital stock of subsidiaries. We must also meet certain financial covenants to include: (i) a maximum total leverage ratio; (ii) a maximum first-lien leverage ratio; and (iii) a minimum interest coverage ratio. In conjunction with the 2021 Credit Agreement, we entered into a security agreement in favor of Bank of America N.A, as collateral agent (the “Security Agreement”). Under the Security Agreement and 2021 Credit Agreement, certain of our domestic subsidiaries have guaranteed its obligations, and have pledged substantially all of our assets to secure the obligations under the 2021 Credit Agreement and such guarantees. During the nine months ended September 30, 2021, we made $ 6.6 million of principal repayments on our 2018 Term Loan. As of September 30, 2021, our interest rate on the 2021 Term Loan is 1.51 % (adjusted LIBOR plus 1.375 % per annum), effective through December 31 2021, and our commitment fee on the 2021 Revolver is 0.15 %. As of September 30, 2021, we had no borrowing outstanding on our 2021 Revolver and had the entire $ 450.0 million available to us. In conjunction with the closing of the 2021 Credit Agreement, we incurred financing costs of $ 3.0 million. When combined with the remaining deferred financing costs of the 2018 Credit Agreement, financing costs of $ 3.7 million have been deferred and are being amortized to interest expense using the effective interest method over the related term of the 2021 Credit Agreement. Additionally, as certain lenders from the 2018 Credit Agreement chose not to participate in the 2021 Credit Agreement syndication group, we wrote-off $ 0.1 million of unamortized debt issuance costs and recognized a loss on extinguishment of that debt. 2016 Convertible Notes. We will settle conversions of the 2016 Convertible Notes by paying or delivering, as the case may be, cash, shares of our common stock, or a combination thereof, at our election. It is our current intent and policy to settle our conversion obligations as follows: (i) pay cash for 100 % of the par value of the 2016 Convertible Notes that are converted; and (ii) to the extent the value of our conversion obligation exceeds the par value, we can satisfy the remaining conversion obligation in our common stock, cash, or a combination thereof. The 2016 Convertible Notes will be convertible at the option of the note holders upon the satisfaction of specified conditions and during certain periods. During the period from, and including, December 15, 2021 to the close of business on the business day immediately preceding March 15, 2022 and on or after December 15, 2035, holders may convert all or any portion of their 2016 Convertible Notes at the conversion rate then in effect at any time regardless of these conditions. For the 2016 Convertible Notes presented during this time frame, the settlement amount will be equal to the sum of the daily settlement amounts for each of the following 40 consecutive trading days during the related observation period. As the 2016 Convertible Notes can be converted at the holder's option beginning December 15, 2021 and ending March 15, 2022, subject to an observation holding period of 40 days , the net carrying value of the 2016 Convertible Notes of $ 229.1 million has been classified as a current liability in our Balance Sheet as of September 30, 2021. As a result of our quarterly dividend in September 2021 (see Note 8), the previous conversion rate for the 2016 Convertible Notes of 17.7159 shares of our common stock per $ 1,000 principal amount of the 2016 Convertible Notes, which is equivalent to an initial conversion price of $ 56.45 per share of our common stock, has been adjusted to 17.7403 shares of our common stock per $ 1,000 principal amount of the 2016 Convertible Notes, which is equivalent to an initial conversion price of $ 56.37 per share of our common stock. Holders may require us to repurchase the 2016 Convertible Notes for cash on each of March 15, 2022, March 15, 2026, and March 15, 2031, or upon the occurrence of a fundamental change (as defined in the 2016 Convertible Notes Indenture) in each case at a purchase price equal to the principal amount thereof plus accrued and unpaid interest. We may redeem for cash all or part of the 2016 Convertible Notes if the last reported sale price of our common stock has been at least 130 % of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. On or after March 15, 2022, we may redeem for cash all or part of the 2016 Convertible Notes regardless of the sales price condition described in the preceding sentence. In each case, the redemption price will equal the principal amount of the 2016 Convertible Notes to be redeemed, plus accrued and unpaid interest. As of September 30, 2021 , none of the conversion features have been achieved, and thus, the 2016 Convertible Notes are not convertible by the holders. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 5. ACQUISITIONS Forte Payment Systems, Inc. In 2018, we acquired Forte Payment Systems, Inc. (“Forte”). The purchase agreement included provisions for $ 18.8 million of potential future earn-out payments. In the second quarter of 2021, a recipient notified us they would be voluntarily resigning later this year. Under the terms of the earn-out provisions, the entire earn-out will terminate upon exit of the recipient. As a result, in the second quarter of 2021, we reversed $ 2.4 million that had been accrued related to the potential earn-out payments. In the third quarter of 2021, the recipient ended their employment, and the earn-out was terminated. Tango Telecom Limited. On May 5, 2021 , we acquired Tango Telecom Limited (“Tango”), a leading supplier of convergent policy control and messaging solutions headquartered in Limerick, Ireland. We acquired 100 % of the equity of Tango for a purchase price of approximately $ 13 million, or approximately $ 11 million, net of cash acquired. This acquisition will allow us to deliver digital monetization solutions to our customers and allow our customers to more effectively manage voice and data transactions. Coupled with our charging and digital monetization capabilities, we possess an end-to-end solution for converged voice and data services across 3G, 4G, and 5G networks. The preliminary estimated fair values of assets acquired primarily include acquired customer contracts of $ 7.0 million, acquired trade accounts receivable of $ 3.4 million, acquired software of $ 2.0 million, and goodwill of $ 0.9 million and liabilities assumed primarily include deferred revenue of $ 1.7 million. The estimated fair values are considered provisional and are based on the information that was available as of the acquisition date. Thus, the provisional measurements of fair value set forth above are subject to change. Such changes are not expected to be significant. We expect to finalize the valuation and complete the purchase price allocation as soon as practicable but not later than one year from the acquisition date. Kitewheel, LLC. On July 1, 2021 , we acquired Kitewheel, the leading provider for customer journey orchestration and analytics, headquartered in Boston, Massachusetts. We acquired 100 % of the equity of Kitewheel for a purchase price of $ 40.0 million, with $ 34.0 million paid upon close and the remaining $ 6 million to be paid in equal annual amounts over the next three years . This acquisition will allow us to expand our customer engagement business, providing real-time, meaningful end-to-end customer experiences for leading brands. The preliminary estimated fair values of assets acquired primarily include goodwill of $ 30.8 million, acquired customer contracts of $ 6.6 million, acquired trade accounts receivable of $ 3.1 million, and acquired software of $ 3.2 million, and liabilities assumed primarily include deferred revenue of $ 3.5 million. The estimated fair values are considered provisional and are based on the information that was available as of the acquisition date. Thus, the provisional measurements of fair value set forth above are subject to change. Such changes are not expected to be significant. We expect to finalize the valuation and complete the purchase price allocation as soon as practicable but not later than one year from the acquisition date. MobileCard Holdings, LLC. In 2018, we invested in MobileCard Holdings, LLC (“MobileCard”), a mobile money fintech payment company that enables omni-channel digital payments and financial inclusion in Latin America. As of June 30, 2021, we held a 15 % noncontrolling equity interest with a carrying value of approximately $ 8 million included in other non-current assets in our Balance Sheet. In July 2021, we purchased additional LLC units from a third-party for approximately $ 4 million and contributed cash of approximately $ 2 million. As a result of these transactions, we have a 64 % controlling interest in the company. Beginning in the third quarter of 2021, the results of MobileCard are consolidated in our results of operations. We preliminarily recorded goodwill of $ 9.6 million and are in the process of reviewing the valuation analysis and calculations necessary to finalize the required purchase price allocations. Upon obtaining control of MobileCard, the fair value of our pre-exiting equity investment was remeasured resulting in a $ 6.2 million non-cash loss as of the acquisition date, which is reflected in other income (expense) on our Income Statement. The fair value was based upon transaction price as it best represented what a market participant would be willing to pay for the LLC units. The non-controlling interest of $ 3.6 million is recorded in total stockholders' equity. We will record 100 % of the profits and losses until the cumulative losses have been recovered. Profits will then be allocated based on equity sharing ratios. Keydok, LLC. On September 14, 2021 , we acquired Keydok LLC (“Keydok”), a digital identity and document management platform provider, headquartered in Mexico. We acquired 100 % of the equity of Keydok for a purchase price of $ 1.0 million, which includes provisions for up to $ 18.0 million of potential future earn-out payments. The earn-out payments are tied to performance-based goals and a defined service period by the eligible recipients and are accounted for as post-acquisition compensation or acquisition costs, as applicable. The earn-out period is through September 30, 2025. The results of Keydok are included in our results of operations from the acquisition date. We preliminarily recorded goodwill of $ 1.0 million, however, have not completed the valuation analysis and calculations necessary to finalize the required purchase price allocations. DGIT Systems Pty Ltd. On October 4, 2021 , we acquired DGIT Systems, a provider of configure, price and quote (CPQ) and order management solutions for the telecommunications industry. We acquired 100 % of the equity of DGIT Systems for a purchase price of AUD 21.3 million (approximately $ 16 million), which includes provisions for up to AUD 18.0 million (approximately $ 13.0 million) of potential future earn-out payments. The earn-out payments are tied to performance-based goals and a defined service period by the eligible recipients and are accounted for as post-acquisition compensation, as applicable. The earn-out period is through September 30, 2025. The results of DGIT Systems will be included in our results of operations from the acquisition date. We have not completed the valuation analysis and calculations necessary to finalize the required purchase price allocations. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | 6. COMMITMENTS, GUARANTEES AND CONTINGENCIES Guarantees . In the ordinary course of business, we may provide guarantees in the form of bid bonds, performance bonds, or standby letters of credit. At September 30, 2021 , we had $ 2.4 million of restricted assets used to collateralize these guarantees, with $ 1.4 million included in cash and cash equivalents and $ 1.0 million included in other non-current assets. We have bid bonds and performance guarantees in the form of surety bonds issued through a third-party of $ 3.9 million that were not required to be recorded on our Balance Sheet. We are ultimately liable for claims that may occur against these guarantees. We have no history of material claims or are aware of circumstances that would require us to pay under any of these arrangements. We also believe that the resolution of any claim that may arise in the future, either individually or in the aggregate, would not be material to our Financial Statements. Additionally, we have money transmitter bonds issued through a third-party for the benefit of various states to comply with the states’ financial requirements and industry regulations for money transmitter licenses. At September 30, 2021 , we had total aggregate money transmitter bonds of approximately $ 16 million outstanding. Warranties. We generally warrant that our solutions and related offerings will conform to published specifications, or to specifications provided in an individual customer arrangement, as applicable. The typical warranty period is 90 days from the date of acceptance of the solution or offering. For certain service offerings we provide a warranty for the duration of the services provided. We generally warrant that those services will be performed in a professional and workmanlike manner. The typical remedy for breach of warranty is to correct or replace any defective deliverable, and if not possible or practical, we will accept the return of the defective deliverable and refund the amount paid under the customer arrangement that is allocable to the defective deliverable. Our contracts also generally contain limitation of damages provisions in an effort to reduce our exposure to monetary damages arising from breach of warranty claims. Historically, we have incurred minimal warranty costs, and as a result, do not maintain a warranty reserve. Solution and Services Indemnifications. Our arrangements with our customers generally include an indemnification provision that will indemnify and defend a customer in actions brought against the customer that claim our products and/or services infringe upon a copyright, trade secret, or valid patent. Historically, we have not incurred any significant costs related to such indemnification claims, and as a result, do not maintain a reserve for such exposure. Claims for Company Non-performance. Our arrangements with our customers typically limit our liability for breach to a specified amount of the direct damages incurred by the customer resulting from the breach. From time-to-time, these arrangements may also include provisions for possible liquidated damages or other financial remedies for our non-performance, or in the case of certain of our outsourced customer care and billing solutions, provisions for damages related to service level performance requirements. The service level performance requirements typically relate to system availability and timeliness of service delivery. As of September 30, 2021, we believe we have adequate reserves, based on our historical experience, to cover any reasonably anticipated exposure as a result of our nonperformance for any past or current arrangements with our customers. Indemnifications Related to Officers and the Board of Directors. We have agreed to indemnify members of our Board of Directors (the “Board”) and certain of our officers if they are named or threatened to be named as a party to any proceeding by reason of the fact that they acted in such capacity. We maintain directors’ and officers’ (D&O) insurance coverage to protect against such losses. We have not historically incurred any losses related to these types of indemnifications, and are not aware of any pending or threatened actions or claims against any officer or member of our Board. As a result, we have not recorded any liabilities related to such indemnifications as of September 30, 2021. In addition, as a result of the insurance policy coverage, we believe these indemnification agreements are not significant to our results of operations. Legal Proceedings. From time-to-time, we are involved in litigation relating to claims arising out of our operations in the normal course of business. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 7. EARNINGS PER COMMON SHARE Basic and diluted earnings per common share (“EPS”) amounts are presented on the face of the accompanying Income Statements. No reconciliation of the basic and diluted EPS numerators is necessary as net income is used as the numerators for all periods presented. The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands): Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Basic weighted-average common shares 31,756 32,115 31,825 32,070 Dilutive effect of restricted common stock 204 158 208 226 Diluted weighted-average common shares 31,960 32,273 32,033 32,296 The Convertible Notes have a dilutive effect only in those quarterly periods in which our average stock price exceeds the current effective conversion price (see Note 4). The stock warrants have a dilutive effect only in those quarterly periods in which our average stock price exceeds the exercise price of $ 26.68 per warrant (under the treasury stock method), and are not subject to performance vesting conditions (see Note 8). Potentially dilutive common shares related to non-participating unvested restricted stock excluded from the computation of diluted EPS, as the effect was antidilutive, were not material in any period presented. |
Stockholders' Equity and Equity
Stockholders' Equity and Equity Compensation Plans | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity and Equity Compensation Plans | 8. STOCKHOLDERS’ EQUITY AND EQUITY COMPENSATION PLANS Stock Repurchase Program. We currently have a stock repurchase program, approved by our Board, authorizing us to repurchase our common stock from time-to-time as market and business conditions warrant (the “Stock Repurchase Program”). During the third quarters of 2021 and 2020 we repurchased approximately 143,000 shares of our common stock for $ 6.7 million (weighted-average price of $ 46.66 per share) and approximately 139,000 shares of our common stock for $ 5.5 million (weighted-average price of $ 39.93 per share), respectively, and during the nine months ended September 30, 2021 and 2020 we repurchased approximately 438,000 shares of our common stock for $ 20.1 million (weighted-average price of $ 46.04 per share), and approximately 290,000 shares of our common stock for $ 12.3 million (weighted-average price of $ 42.55 per share), respectively, under a SEC Rule 10b5-1 Plan. As of September 30, 2021 , the total remaining number of shares available for repurchase under the Stock Repurchase Program totaled 3.9 million shares. Stock Repurchases for Tax Withholdings. In addition to the above-mentioned stock repurchases, during the third quarters of 2021 and 2020 we repurchased and then cancelled approximately 2,000 shares of common stock for $ 0.1 million and approximately 4,000 shares of common stock for $ 0.1 million, respectively, and during the nine months ended September 30, 2021 and 2020 we repurchased and then cancelled approximately 115,000 shares of common stock for $ 5.5 million and approximately 163,000 shares of common stock for $ 7.8 million, respectively, in connection with minimum tax withholding requirements resulting from the vesting of restricted common stock under our stock incentive plans. Cash Dividends. During the third quarter of 2021 , the Board approved a quarterly cash dividend of $ 0.25 per share of common stock, totaling $ 8.1 million. During the third quarter of 2020 , the Board approved a quarterly cash dividend of $ 0.235 per share of common stock, totaling $ 7.8 million. Dividends declared for the nine months ended September 30, 2021 and 2020 totaled $ 24.5 million and $ 23.2 million, respectively. Warrants . In 2014, in conjunction with the execution of an amendment to our current agreement with Comcast Corporation (“Comcast”), we issued stock warrants (the “Warrant Agreement”) for the right to purchase up to 2.9 million shares of our common stock (the “Stock Warrants”) as an additional incentive for Comcast to convert customer accounts onto our Advanced Convergent Platform (“ACP”) based on various milestones. The Stock Warrants have a ten-year term and an exercise price of $ 26.68 per warrant. As of September 30, 2021 , 1.0 million Stock Warrants remain issued, none of which were vested. The remaining unvested Stock Warrants will be accounted for as a customer contract cost asset once the performance conditions necessary for vesting are considered probable. Stock-Based Awards. A summary of our unvested restricted common stock activity during the quarter and nine months ended September 30, 2021 is as follows (shares in thousands): Quarter Ended Nine Months Ended September 30, 2021 September 30, 2021 Shares Weighted- Shares Weighted- Unvested awards, beginning 1,167 $ 43.95 1,041 $ 41.31 Awards granted 58 46.78 577 47.75 Awards forfeited/cancelled ( 40 ) 44.76 ( 79 ) 43.37 Awards vested ( 44 ) 39.02 ( 398 ) 41.40 Unvested awards, ending 1,141 $ 44.26 1,141 $ 44.26 Included in the awards granted during the nine months ended September 30, 2021 are performance-based awards for 0.1 million restricted common stock shares issued to members of executive management and certain key employees, which vest in the first quarter of 2023 upon meeting certain pre-established financial performance objectives over a two-year performance period. Certain of these awards become fully vested upon a change in control, as defined, and the subsequent involuntary termination of employment. The other restricted common stock shares granted during the nine months ended September 30, 2021 are primarily time-based awards, which vest annually over four years with no restrictions other than the passage of time. Certain shares of the restricted common stock become fully vested upon a change in control, as defined, and the subsequent involuntary termination of employment, or death. We recorded stock-based compensation expense for the third quarters of 2021 and 2020 of $ 4.9 million and $ 4.0 million, respectively, and for the nine months ended September 30, 2021 and 2020 of $ 15.3 million and $ 14.1 million, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements. The preparation of the accompanying Financial Statements in conformity with U.S. GAAP 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 our Financial Statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Reclassifications | Reclassifications. Certain amounts for the prior period have been reclassified to conform to the September 30, 2021 presentation. Beginning with the second quarter of 2021, we determined that settlement and merchant reserve assets consist of restricted cash and are now included with cash, cash equivalents and restricted cash when reconciling the beginning-of-period and end-of-period total amounts shown on the condensed consolidated statements of cash flows (the “Statements of Cash Flows”). Historically, we presented the change in settlement and merchant reserve assets and liabilities as part of the changes in operating assets and liabilities on the Statements of Cash Flows. Additionally, cash flows related to our settlement and merchant reserve liabilities have been reclassified from cash flows from operating activities to cash flows from financing activities. Prior period amounts have been reclassified to conform to the current period presentation. These changes have no impact on our previously reported consolidated net income, total assets, including cash and cash equivalents, liabilities, and equity. In addition, these changes have no material impact on our previously reported cash flows from operating activities. |
Revenue | Revenue. The majority of our future revenue is related to our revenue management solution customer contracts that include variable consideration dependent upon a series of monthly volumes and/or daily usage of services and have contractual terms ending from 2021 through 2028 . Our customer contracts may include guaranteed minimums and fixed monthly or annual fees. As of September 30, 2021 , our aggregate amount of the transaction price allocated to the remaining performance obligations is approximately $ 900 million, which is made up of fixed fee consideration and guaranteed minimums expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). We expect to recognize approximately 75 % of this amount by the end of 2023 , with the remaining amount recognized by the end of 2028 . We have excluded from this amount variable consideration expected to be recognized in the future related to performance obligations that are unsatisfied. The nature, amount, timing, and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by revenue type, geographic region, and customer vertical. Revenue by type for the quarters and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cloud and related solutions $ 231,418 $ 217,527 $ 686,685 $ 654,027 Software and services 19,518 15,260 49,330 43,502 Maintenance 12,273 11,321 35,447 32,517 Total revenue $ 263,209 $ 244,108 $ 771,462 $ 730,046 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for the quarters and nine months ended September 30, 2021 and 2020 , as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Americas (principally the U.S.) 85 % 86 % 85 % 87 % Europe, Middle East, and Africa 12 % 10 % 11 % 9 % Asia Pacific 3 % 4 % 4 % 4 % Total revenue 100 % 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in other industry markets including financial services, healthcare, media and entertainment companies, and government entities. Revenue by customer vertical for the quarters and nine months ended September 30, 2021 and 2020 , as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Broadband/Cable/Satellite 56 % 59 % 57 % 59 % Telecommunications 20 % 18 % 19 % 18 % Other 24 % 23 % 24 % 23 % Total revenue 100 % 100 % 100 % 100 % Deferred revenue recognized during the quarters ended September 30, 2021 and 2020 was $ 9.9 million and $ 6.1 million, respectively, and during the nine months ended September 30, 2021 and 2020 was $ 41.9 million and $ 33.4 million, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid investments with original maturities of three months or less at the date of the purchase to be cash equivalents. As of September 30, 2021 and December 31, 2020, our cash equivalents consist primarily of institutional money market funds, commercial paper, and time deposits held at major banks. For the cash and cash equivalents denominated in foreign currencies and/or located outside the U.S., we do not anticipate any material amounts being unavailable for use in running our business, but may face limitations on moving cash out of certain foreign jurisdictions due to currency controls and potential negative economic consequences. Restricted Cash. Restricted cash includes cash that is legally or contractually restricted, as well as our settlement and merchant reserve assets. As of September 30, 2021 and December 31, 2020 , we had $ 1.4 million and $ 1.7 million, respectively, of restricted cash that serves to collateralize outstanding letters of credit included in cash and cash equivalents in our Condensed Consolidated Balance Sheets (“Balance Sheets” or “Balance Sheet”). Settlement and Merchant Reserve Assets and Liabilities. Settlement assets and liabilities represent cash collected on behalf of customers via payment processing services which is held for an established holding period until settlement with the customer. The holding period is generally one to four business days depending on the payment model, risk profile, and contractual terms with the customer. During the holding period, cash is held in trust with various major financial institutions and a corresponding liability is recorded for the amounts owed to the merchant. At any given time, there may be differences between the cash held in trust and the corresponding liability due to the timing of operating-related cash transfers. Merchant reserves represent deposits collected from customers to mitigate our risk of loss due to nonperformance of settlement obligations initiated by our customers using our payment processing services, or non-payment by customers for services rendered by us. We perform a credit risk evaluation on each customer based on multiple criteria, which provide the basis for the deposit amount required for each customer. For the duration of our relationship with each customer, we hold their reserve deposits with major financial institutions. We hold these funds in separate accounts and are fully offset by corresponding liabilities. The following table summarizes our settlement and merchant reserve assets and liabilities as of the indicated periods (in thousands): September 30, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Settlement assets/liabilities $ 141,957 $ 140,340 $ 149,785 $ 148,818 Merchant reserve assets/liabilities 16,968 16,968 16,246 16,246 Total $ 158,925 $ 157,308 $ 166,031 $ 165,064 |
Short-term Investments and Other Financial Instruments | Financial Instruments . Our financial instruments as of September 30, 2021 and December 31, 2020 include cash and cash equivalents, short-term investments, settlement and merchant reserve assets and liabilities, accounts receivable, accounts payable, and debt. Due to their short maturities, the carrying amounts of cash equivalents, settlement and merchant reserve assets and liabilities, accounts receivable, and accounts payable approximate their fair value. Our short-term investments and certain of our cash equivalents are considered “available-for-sale” and are reported at fair value in our Balance Sheets, with unrealized gains and losses, net of the related income tax effect, excluded from earnings and reported in a separate component of stockholders’ equity. Realized and unrealized gains and losses were not material in any period presented. Primarily all short-term investments held by us as of September 30, 2021 and December 31, 2020 have contractual maturities of less than two years from the time of acquisition. Our short-term investments as of September 30, 2021 and December 31, 2020 consisted almost entirely of fixed income securities. Proceeds from the sale/maturity of short-term investments for the nine months ended September 30, 2021 and 2020 were $ 80.1 million and $ 37.7 million, respectively, and purchases of short-term investments for the nine months ended September 30, 2021 and 2020 were $ 57.7 million and $ 49.1 million, respectively. Our short-term investments as of September 30, 2021 and December 31, 2020 were $ 29.2 million and $ 51.6 million, respectively. The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets measured at fair value (in thousands): September 30, 2021 December 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 29,170 $ — $ 29,170 $ 33,535 $ — $ 33,535 Commercial paper — — — — 15,746 15,746 Corporate debt securities — — 1,351 1,351 Short-term investments: Corporate debt securities — 24,565 24,565 — 38,672 38,672 U.S. government agency bonds — — — — 4,642 4,642 Asset-backed securities — 4,610 4,610 — 8,284 8,284 Total $ 29,170 $ 29,175 $ 58,345 $ 33,535 $ 68,695 $ 102,230 Valuation inputs used to measure the fair values of our money market funds were derived from quoted market prices. The fair values of all other financial instruments are based upon pricing provided by third-party pricing services. These prices were derived from observable market inputs. We have chosen not to record our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value (par value for convertible debt) and estimated fair value of our debt as of the indicated periods (in thousands): September 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value 2018 Credit Agreement (carrying value including $ - $ - $ 126,563 $ 126,563 2021 Credit Agreement (carrying value including 150,000 150,000 — — 2016 Convertible debt (par value) 230,000 237,763 230,000 244,663 The fair value for our credit agreement was estimated using a discounted cash flow methodology, while the fair value for our convertible debt was estimated based upon quoted market prices or recent sales activity, both of which are considered Level 2 inputs. |
Accounting Pronouncement Issued But Not Yet Effective | Accounting Pronouncement Issued But Not Yet Effective. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. ASU 2020-06 also amends the related Earnings Per Share guidance. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, and can be adopted on either a fully retrospective or modified retrospective basis. We are currently evaluating the method of adoption and overall impact of this standard on our Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Revenue Disaggregated by Revenue Type, Geographic Region and Customer | The nature, amount, timing, and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by revenue type, geographic region, and customer vertical. Revenue by type for the quarters and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Cloud and related solutions $ 231,418 $ 217,527 $ 686,685 $ 654,027 Software and services 19,518 15,260 49,330 43,502 Maintenance 12,273 11,321 35,447 32,517 Total revenue $ 263,209 $ 244,108 $ 771,462 $ 730,046 We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for the quarters and nine months ended September 30, 2021 and 2020 , as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Americas (principally the U.S.) 85 % 86 % 85 % 87 % Europe, Middle East, and Africa 12 % 10 % 11 % 9 % Asia Pacific 3 % 4 % 4 % 4 % Total revenue 100 % 100 % 100 % 100 % We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in other industry markets including financial services, healthcare, media and entertainment companies, and government entities. Revenue by customer vertical for the quarters and nine months ended September 30, 2021 and 2020 , as a percentage of our total revenue, were as follows: Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Broadband/Cable/Satellite 56 % 59 % 57 % 59 % Telecommunications 20 % 18 % 19 % 18 % Other 24 % 23 % 24 % 23 % Total revenue 100 % 100 % 100 % 100 % |
Schedule of Settlement and Merchant Reserve Assets and Liabilities | The following table summarizes our settlement and merchant reserve assets and liabilities as of the indicated periods (in thousands): September 30, 2021 December 31, 2020 Assets Liabilities Assets Liabilities Settlement assets/liabilities $ 141,957 $ 140,340 $ 149,785 $ 148,818 Merchant reserve assets/liabilities 16,968 16,968 16,246 16,246 Total $ 158,925 $ 157,308 $ 166,031 $ 165,064 |
Fair Value Measurements | The following table represents the fair value hierarchy based upon three levels of inputs, of which Levels 1 and 2 are considered observable and Level 3 is unobservable, for our financial assets measured at fair value (in thousands): September 30, 2021 December 31, 2020 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 29,170 $ — $ 29,170 $ 33,535 $ — $ 33,535 Commercial paper — — — — 15,746 15,746 Corporate debt securities — — 1,351 1,351 Short-term investments: Corporate debt securities — 24,565 24,565 — 38,672 38,672 U.S. government agency bonds — — — — 4,642 4,642 Asset-backed securities — 4,610 4,610 — 8,284 8,284 Total $ 29,170 $ 29,175 $ 58,345 $ 33,535 $ 68,695 $ 102,230 |
Carrying Value (Par Value for Convertible Debt) and Estimated Fair Value of Debt | We have chosen not to record our debt at fair value, with changes recognized in earnings each reporting period. The following table indicates the carrying value (par value for convertible debt) and estimated fair value of our debt as of the indicated periods (in thousands): September 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value 2018 Credit Agreement (carrying value including $ - $ - $ 126,563 $ 126,563 2021 Credit Agreement (carrying value including 150,000 150,000 — — 2016 Convertible debt (par value) 230,000 237,763 230,000 244,663 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Goodwill. The changes in the carrying amount of goodwill for the nine months ended September 30, 2021 were as follows (in thousands): January 1, 2021 balance $ 272,322 Goodwill acquired during period 42,417 Adjustments related to prior acquisitions ( 45 ) Effects of changes in foreign currency exchange rates ( 1,448 ) September 30, 2021 balance $ 313,246 |
Summary of Carrying Value of Assets | As of September 30, 2021 and December 31, 2020, the carrying values of these assets were as follows (in thousands): September 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Acquired customer contracts $ 166,634 $ ( 111,602 ) $ 55,032 $ 153,790 $ ( 105,778 ) $ 48,012 Software 177,363 ( 148,667 ) 28,696 166,289 ( 139,836 ) 26,453 Total intangible assets $ 343,997 $ ( 260,269 ) $ 83,728 $ 320,079 $ ( 245,614 ) $ 74,465 |
Summary of Carrying Values of Customer Contract Cost Assets | Customer Contract Costs . As of September 30, 2021 and December 31, 2020, the carrying values of our customer contract cost assets, related to those contracts with a contractual term greater than one year, were as follows (in thousands): September 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Customer contract costs $ 97,949 $ ( 50,700 ) $ 47,249 $ 87,131 $ ( 39,893 ) $ 47,238 During the second quarter of 2020, we recorded an impairment charge of $ 10.3 million for the write-off of capitalized customer contract costs related to a discontinued project implementation. This non-cash impairment charge is included primarily in the cost of revenue in our Condensed Consolidated Statements of Income ("Income Statement"). |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Our long-term debt, as of September 30, 2021 and December 31, 2020, was as follows (in thousands): September 30, December 31, 2021 2020 2021 Credit Agreement: Term loan, due September 2026 , interest at adjusted LIBOR plus 1.375 % (combined rate of 1.51 % at September 30, 2021) $ 150,000 $ - Less – deferred financing costs ( 3,595 ) — 2021 Term Loan, net of unamortized discounts 146,405 — $ 450 million revolving loan facility, due September 2026 , interest at adjusted LIBOR plus applicable margin — — 2018 Credit Agreement: Term loan, due March 2023 , interest at adjusted LIBOR plus 1.5 % (combined rate of 1.75 % at December 31, 2020) — 126,563 Less – deferred financing costs — ( 1,155 ) 2018 Term Loan, net of unamortized discounts — 125,408 $ 200 million revolving loan facility, due March 2023 , interest at adjusted LIBOR plus applicable margin — — 2016 Convertible Notes: Convertible Notes – Senior convertible notes; due March 15, 2036 ; cash interest at 4.25 % 230,000 230,000 Less – unamortized original issue discount ( 671 ) ( 3,021 ) Less – deferred financing costs ( 259 ) ( 1,170 ) 2016 Convertible Notes, net of unamortized discounts 229,070 225,809 Total debt, net of unamortized discounts 375,475 351,217 Current portion of long-term debt, net of unamortized discounts ( 236,570 ) ( 14,063 ) Long-term debt, net of unamortized discounts $ 138,905 $ 337,154 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Basic and Diluted EPS Denominators | The reconciliation of the basic and diluted EPS denominators related to the common shares is included in the following table (in thousands): Quarter Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Basic weighted-average common shares 31,756 32,115 31,825 32,070 Dilutive effect of restricted common stock 204 158 208 226 Diluted weighted-average common shares 31,960 32,273 32,033 32,296 |
Stockholders' Equity and Equi_2
Stockholders' Equity and Equity Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders Equity Note [Abstract] | |
Summary of Unvested Restricted Common Stock Activity | A summary of our unvested restricted common stock activity during the quarter and nine months ended September 30, 2021 is as follows (shares in thousands): Quarter Ended Nine Months Ended September 30, 2021 September 30, 2021 Shares Weighted- Shares Weighted- Unvested awards, beginning 1,167 $ 43.95 1,041 $ 41.31 Awards granted 58 46.78 577 47.75 Awards forfeited/cancelled ( 40 ) 44.76 ( 79 ) 43.37 Awards vested ( 44 ) 39.02 ( 398 ) 41.40 Unvested awards, ending 1,141 $ 44.26 1,141 $ 44.26 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Aggregate amount of transaction price allocated to remaining performance obligations | $ 900,000 | $ 900,000 | |||
Remaining performance obligations expected to be recognized, year | 2028 | 2028 | |||
Deferred revenue recognized | $ 9,900 | $ 6,100 | $ 41,900 | $ 33,400 | |
Restricted cash | 1,400 | 1,400 | $ 1,700 | ||
Proceeds from sale/maturity of short-term investments | 80,092 | 37,743 | |||
Short-term investments | $ 29,175 | 29,175 | $ 51,598 | ||
Purchases of short-term investments | $ 57,734 | $ 49,100 | |||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Future revenue including variable consideration, contractual terms ending, year | 2021 | ||||
Holding period of settlement and merchant reserve assets and liabilities | 1 day | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Future revenue including variable consideration, contractual terms ending, year | 2028 | ||||
Holding period of settlement and merchant reserve assets and liabilities | 4 days | ||||
Short-term investment contractual maturities | 2 years | 2 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | Sep. 30, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations expected to be recognized, percentage | 75.00% |
Remaining performance obligations expected to be recognized, period | 2 years 3 months |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Revenue Disaggregated by Revenue Type, Geographic Region and Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 263,209 | $ 244,108 | $ 771,462 | $ 730,046 |
Percentage of total revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Broadband/Cable/Satellite | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 56.00% | 59.00% | 57.00% | 59.00% |
Telecommunications | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 20.00% | 18.00% | 19.00% | 18.00% |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 24.00% | 23.00% | 24.00% | 23.00% |
Americas (principally the U.S.) | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 85.00% | 86.00% | 85.00% | 87.00% |
Europe, Middle East and Africa | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 12.00% | 10.00% | 11.00% | 9.00% |
Asia Pacific | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of total revenue | 3.00% | 4.00% | 4.00% | 4.00% |
Cloud and Related Solutions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ (231,418) | $ 217,527 | $ 686,685 | $ 654,027 |
Software and Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | (19,518) | 15,260 | 49,330 | 43,502 |
Maintenance | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ (12,273) | $ 11,321 | $ 35,447 | $ 32,517 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Settlement and Merchant Reserve Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Settlement And Merchant Reserve Assets And Liabilities [Abstract] | |||
Settlement assets | $ 141,957 | $ 149,785 | |
Merchant reserve assets | 16,968 | 16,246 | |
Total | 158,925 | 166,031 | $ 133,961 |
Settlement liabilities | 140,340 | 148,818 | |
Merchant reserve liabilities | 16,968 | 16,246 | |
Total | $ 157,308 | $ 165,064 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Assets fair value | $ 58,345 | $ 102,230 |
Cash equivalents | Money Market Funds | ||
Assets: | ||
Assets fair value | 29,170 | 33,535 |
Cash equivalents | Commercial Paper | ||
Assets: | ||
Assets fair value | 15,746 | |
Cash equivalents | Corporate Debt Securities | ||
Assets: | ||
Assets fair value | 1,351 | |
Short-term Investments | Corporate Debt Securities | ||
Assets: | ||
Assets fair value | 24,565 | 38,672 |
Short-term Investments | U.S. Government Agency Bonds | ||
Assets: | ||
Assets fair value | 4,642 | |
Short-term Investments | Asset-backed securities | ||
Assets: | ||
Assets fair value | 4,610 | 8,284 |
Level 1 | ||
Assets: | ||
Assets fair value | 29,170 | 33,535 |
Level 1 | Cash equivalents | Money Market Funds | ||
Assets: | ||
Assets fair value | 29,170 | 33,535 |
Level 2 | ||
Assets: | ||
Assets fair value | 29,175 | 68,695 |
Level 2 | Cash equivalents | Commercial Paper | ||
Assets: | ||
Assets fair value | 15,746 | |
Level 2 | Cash equivalents | Corporate Debt Securities | ||
Assets: | ||
Assets fair value | 1,351 | |
Level 2 | Short-term Investments | Corporate Debt Securities | ||
Assets: | ||
Assets fair value | 24,565 | 38,672 |
Level 2 | Short-term Investments | U.S. Government Agency Bonds | ||
Assets: | ||
Assets fair value | 4,642 | |
Level 2 | Short-term Investments | Asset-backed securities | ||
Assets: | ||
Assets fair value | $ 4,610 | $ 8,284 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Carrying Value (Par Value for Convertible Debt) and Estimated Fair Value of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
2018 Credit Agreement | 2018 Term Loan | ||
Carrying value and estimated fair value of debt | ||
Fair Value | $ 126,563 | |
Carrying Value | 126,563 | |
2021 Credit Agreement | 2021 Term Loan | ||
Carrying value and estimated fair value of debt | ||
Fair Value | $ 150,000 | |
Carrying Value | 150,000 | |
Senior Convertible Notes 2016 | ||
Carrying value and estimated fair value of debt | ||
Fair Value | 237,763 | 244,663 |
Carrying Value | $ 230,000 | $ 230,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill RollForward | |
Beginning balance | $ 272,322 |
Goodwill acquired during period | 42,417 |
Adjustments related to prior acquisitions | (45) |
Effects of changes in foreign currency exchange rates | (1,448) |
Ending balance | $ 313,246 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Carrying Value of Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 343,997 | $ 320,079 |
Accumulated Amortization | (260,269) | (245,614) |
Net Amount | 83,728 | 74,465 |
Acquired customer contracts | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 166,634 | 153,790 |
Accumulated Amortization | (111,602) | (105,778) |
Net Amount | 55,032 | 48,012 |
Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 177,363 | 166,289 |
Accumulated Amortization | (148,667) | (139,836) |
Net Amount | $ 28,696 | $ 26,453 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization expense | $ 6.5 | $ 6.3 | $ 18 | $ 18.9 | |
Estimated total amortization expense 2021 | 24.4 | 24.4 | |||
Estimated total amortization expense 2022 | 21 | 21 | |||
Estimated total amortization expense 2023 | 16.7 | 16.7 | |||
Estimated total amortization expense 2024 | 11.1 | 11.1 | |||
Estimated total amortization expense 2025 | 9.3 | 9.3 | |||
Customer contract costs | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Total amortization expense | $ 5.3 | $ 4.2 | $ 15 | $ 12.8 | |
Customer contract costs | Cost of revenue | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Impairment charge for write-off of capitalized customer contract costs | $ 10.3 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Carrying Values of Customer Contract Cost Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Capitalized Contract Cost [Abstract] | ||
Customer contract costs, Gross Carrying Amount | $ 97,949 | $ 87,131 |
Customer contract costs, Accumulated Amortization | (50,700) | (39,893) |
Customer contract costs, Net Amount | $ 47,249 | $ 47,238 |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 13, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Less - unamortized original issue discount | $ (3,595) | $ (5,346) | |
Total debt, net of unamortized discounts | 375,475 | 351,217 | |
Current portion of long-term debt, net of unamortized discounts | (236,570) | (14,063) | |
Long-term debt, net of unamortized discounts | 138,905 | 337,154 | |
2021 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Less – deferred financing costs | (3,700) | ||
2021 Credit Agreement | 2021 Term Loan | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross | 150,000 | ||
Less – deferred financing costs | (3,595) | ||
Total debt, net of unamortized discounts | 146,405 | $ 150,000 | |
2018 Credit Agreement | 2018 Term Loan | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross | 126,563 | ||
Less – deferred financing costs | (1,155) | ||
Total debt, net of unamortized discounts | 125,408 | ||
Senior Convertible Notes 2016 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross | 230,000 | 230,000 | |
Less - unamortized original issue discount | (671) | (3,021) | |
Less – deferred financing costs | (259) | (1,170) | |
Total debt, net of unamortized discounts | 229,070 | $ 225,809 | |
Current portion of long-term debt, net of unamortized discounts | $ (229,100) |
Debt - Long-Term Debt (Parenthe
Debt - Long-Term Debt (Parenthetical) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 13, 2021 | |
2021 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Amount available under credit facility | $ 600,000,000 | ||
2021 Credit Agreement | 2021 Term Loan | |||
Debt Instrument [Line Items] | |||
Basis spread on term loan | 1.375% | ||
Term loan combined interest rate | 1.51% | ||
Maturity period | Sep. 30, 2026 | ||
2021 Credit Agreement | Revolving Loan | |||
Debt Instrument [Line Items] | |||
Amount available under credit facility | $ 450,000,000 | 450,000,000 | |
Maturity period | Sep. 30, 2026 | ||
2018 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Amount available under credit facility | $ 350,000,000 | ||
2018 Credit Agreement | 2018 Term Loan | |||
Debt Instrument [Line Items] | |||
Basis spread on term loan | 1.50% | ||
Term loan combined interest rate | 1.51% | 1.75% | |
Maturity period | Mar. 31, 2023 | ||
2018 Credit Agreement | Revolving Loan | |||
Debt Instrument [Line Items] | |||
Amount available under credit facility | $ 200,000,000 | ||
Maturity period | Mar. 31, 2023 | ||
Senior Convertible Notes 2016 | |||
Debt Instrument [Line Items] | |||
Maturity period | Mar. 15, 2036 | ||
Interest rate on senior subordinated convertible notes | 4.25% |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details Textual) - USD ($) | Sep. 13, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Carrying value of debt | $ 375,475,000 | $ 351,217,000 | ||
Proceeds from long term debt | 150,000,000 | |||
Principal repayments | 126,563,000 | $ 7,500,000 | ||
Net increase of available cash | $ 30,000,000 | |||
Payments of deferred financing costs | 3,000,000 | 3,000,000 | ||
Loss on extinguishment of debt | (132,000) | |||
2021 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Credit Agreement | 600,000,000 | |||
Financing costs | $ 3,700,000 | |||
2021 Credit Agreement | Minimum | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.15% | |||
2021 Credit Agreement | Maximum | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.325% | |||
2021 Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on term loan | 1.375% | |||
2021 Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on term loan | 2.125% | |||
2021 Credit Agreement | Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on term loan | 0.375% | |||
2021 Credit Agreement | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on term loan | 1.125% | |||
2021 Credit Agreement | Revolving Loan | ||||
Debt Instrument [Line Items] | ||||
Credit Agreement | 450,000,000 | $ 450,000,000 | ||
Credit facility term | 5 years | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.15% | |||
Credit facility, outstanding borrowings | $ 0 | |||
Credit facility, current borrowing capacity | 450,000,000 | |||
2021 Credit Agreement | 2021 Term Loan | ||||
Debt Instrument [Line Items] | ||||
Carrying value of debt | 150,000,000 | $ 146,405,000 | ||
Term loan period | 5 years | |||
Proceeds from long term debt | 150,000,000 | |||
Basis spread on term loan | 1.375% | |||
Term loan combined interest rate | 1.51% | |||
Financing costs | $ 3,595,000 | |||
2018 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Credit Agreement | 350,000,000 | |||
Principal repayments | 120,000,000 | |||
2018 Credit Agreement | Revolving Loan | ||||
Debt Instrument [Line Items] | ||||
Credit Agreement | 200,000,000 | |||
Unamortized debt issuance costs | $ 100,000 | |||
Loss on extinguishment of debt | 100,000 | |||
2018 Credit Agreement | 2018 Term Loan | ||||
Debt Instrument [Line Items] | ||||
Carrying value of debt | $ 125,408,000 | |||
Principal repayments | $ 6,600,000 | |||
Basis spread on term loan | 1.50% | |||
Term loan combined interest rate | 1.51% | 1.75% | ||
Financing costs | $ 1,155,000 |
Debt - 2016 Convertible Notes (
Debt - 2016 Convertible Notes (Details Textual) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)Tradingday$ / shares | Dec. 31, 2020USD ($)$ / shares | |
Debt Instrument [Line Items] | ||
Net carrying value | $ 236,570,000 | $ 14,063,000 |
Senior Convertible Notes 2016 | ||
Debt Instrument [Line Items] | ||
Percentage of par value of convertible notes to be settled in cash | 100.00% | |
Observation holding period | 40 days | |
Net carrying value | $ 229,100,000 | |
Initial conversion rate of common stock | 17.7403 | 17.7159 |
Convertible Notes, initial conversion of Par Value Convertible Notes to common stock | $ 1,000 | $ 1,000 |
Initial conversion price | $ / shares | $ 56.37 | $ 56.45 |
Rate of conversion price | 130.00% | |
Debt instrument, convertible, threshold consecutive trading days | Tradingday | 30 | |
Debt instrument, convertible, threshold trading days | Tradingday | 20 |
Acquisitions (Details Textual)
Acquisitions (Details Textual) $ in Thousands, $ in Millions | 1 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021AUD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021AUD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) | |
Business Acquisition [Line Items] | ||||||||
Business acquisition, net of cash acquired | $ 51,111 | $ 11,491 | ||||||
Goodwill | $ 313,246 | $ 272,322 | ||||||
Forte Payment Systems, Inc | ||||||||
Business Acquisition [Line Items] | ||||||||
Potential future earn out payments | $ 18,800 | |||||||
Accrued earn out payments | $ 2,400 | |||||||
Tango Telecom Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition date | May 5, 2021 | May 5, 2021 | ||||||
Percentage of acquired of equity | 100.00% | 100.00% | ||||||
Business acquisition, purchase price | $ 13,000 | |||||||
Business acquisition, net of cash acquired | 11,000 | |||||||
Estimated fair values of assets acquired | 7,000 | |||||||
Acquired trade accounts receivable | 3,400 | |||||||
Deferred revenue | 1,700 | |||||||
Goodwill | 900 | |||||||
Tango Telecom Limited | Software | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated fair values of assets acquired | $ 2,000 | |||||||
Tango Telecom Limited | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Expect to finalize valuation and complete purchase price allocation period | 1 year | 1 year | ||||||
Kitewheel, LLC. | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition date | Jul. 1, 2021 | Jul. 1, 2021 | ||||||
Percentage of acquired of equity | 100.00% | 100.00% | ||||||
Business acquisition, purchase price | $ 40,000 | |||||||
Acquired trade accounts receivable | 3,100 | |||||||
Deferred revenue | $ 3,500 | |||||||
Expect to finalize valuation and complete purchase price allocation period | 1 year | 1 year | ||||||
Business acquisition, payment | $ 34,000 | |||||||
Business acquisition, remaining payment in equal annual amount | $ 6,000 | |||||||
Business acquisition, remaining payment in equal annual period | 3 years | 3 years | ||||||
Goodwill | $ 30,800 | |||||||
Kitewheel, LLC. | Acquired customer contracts | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated fair values of assets acquired | 6,600 | |||||||
Kitewheel, LLC. | Software | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated fair values of assets acquired | 3,200 | |||||||
MobileCard Holdings, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of acquired of equity | 64.00% | |||||||
Business acquisition, payment | $ 2,000 | |||||||
Purchased additional LLC units | $ 4,000 | |||||||
Goodwill | 9,600 | |||||||
Fair value of our pre-exiting equity investment | 6,200 | |||||||
Non-controlling interest | $ 3,600 | |||||||
Cumulative profits and losses recorded until losses recovered, percentage | 100.00% | 100.00% | ||||||
MobileCard Holdings, LLC | Mobile Money Fintech Payment Company | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of noncontrolling equity interest | 15.00% | |||||||
MobileCard Holdings, LLC | Other Non-current Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity method investment | $ 8,000 | |||||||
Keydok LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Potential future earn out payments | $ 18,000 | |||||||
Business acquisition date | Sep. 14, 2021 | Sep. 14, 2021 | ||||||
Percentage of acquired of equity | 100.00% | 100.00% | ||||||
Business acquisition, purchase price | $ 1,000 | |||||||
Goodwill | 1,000 | |||||||
DGIT Systems Pty Ltd | ||||||||
Business Acquisition [Line Items] | ||||||||
Potential future earn out payments | $ 13,000 | $ 18 | ||||||
Business acquisition date | Oct. 4, 2021 | Oct. 4, 2021 | ||||||
Percentage of acquired of equity | 100.00% | 100.00% | ||||||
Business acquisition, purchase price | $ 16,000 | $ 21.3 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Other Commitments [Line Items] | ||
Restricted assets used to collateralize guarantees | $ 2.4 | |
Restricted assets used to collateralize guarantees | 1.4 | $ 1.7 |
Money transmitter bonds | $ 16 | |
Warranty Period | 90 days | |
Surety Bond | ||
Other Commitments [Line Items] | ||
Restricted assets used to collateralize guarantees | $ 3.9 | |
Cash and Cash equivalents | ||
Other Commitments [Line Items] | ||
Restricted assets used to collateralize guarantees | 1.4 | |
Other Non-current Assets | ||
Other Commitments [Line Items] | ||
Restricted assets used to collateralize guarantees | $ 1 |
Earnings Per Common Share - Rec
Earnings Per Common Share - Reconciliation of the Basic and Diluted EPS Denominators (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reconciliation of the basic and diluted EPS denominators | ||||
Basic weighted-average common shares | 31,756 | 32,115 | 31,825 | 32,070 |
Dilutive effect of restricted common stock | 204 | 158 | 208 | 226 |
Diluted weighted-average common shares | 31,960 | 32,273 | 32,033 | 32,296 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details Textual) - $ / shares | Sep. 30, 2021 | Dec. 31, 2014 |
Earnings Per Share [Abstract] | ||
Common stock warrants issued, per warrant | $ 26.68 | $ 26.68 |
Stockholders' Equity and Equi_3
Stockholders' Equity and Equity Compensation Plans (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2014 | |
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||
Remaining number of shares available for repurchase | 3,900,000 | 3,900,000 | |||
Repurchase of common stock for employee tax withholdings, shares | 2,000 | 4,000 | 115,000 | 163,000 | |
Repurchase of common stock for tax withholdings, value | $ 100 | $ 100 | $ 5,500 | $ 7,800 | |
Cash dividends declared per common share | $ 0.25 | $ 0.235 | |||
Cash dividend | $ 8,100 | $ 7,800 | $ 24,500 | 23,200 | |
Stock warrants term | 10 years | ||||
Stock warrants, exercise price | $ 26.68 | $ 26.68 | $ 26.68 | ||
Stock-based compensation expense | $ 15,304 | 14,088 | |||
Performance Shares | |||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||
Performance based awards granted to executive management and certain key employees shares | 100,000 | ||||
Vesting maturity date | first quarter of 2023 | ||||
Vesting period | 2 years | ||||
Restricted common stock | |||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||
Vesting period | 4 years | ||||
Separation Agreement | |||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||
Stock-based compensation expense | $ 4,900 | $ 4,000 | $ 15,300 | $ 14,100 | |
Comcast | |||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||
Issuance of stock warrants | 2,900,000 | ||||
Stock warrants issued | 1,000,000 | 1,000,000 | |||
Stock warrants vested | 0 | ||||
SEC Rule 10b5-1 Plan | |||||
Stockholders Equity And Equity Compensation Plans [Line Items] | |||||
Repurchase of common stock, shares | 143,000 | 139,000 | 438,000 | 290,000 | |
Total amount paid | $ 6,700 | $ 5,500 | $ 20,100 | $ 12,300 | |
Weighted-average price per share | $ 46.66 | $ 39.93 | $ 46.04 | $ 42.55 |
Stockholders' Equity and Equi_4
Stockholders' Equity and Equity Compensation Plans - Summary of Unvested Restricted Common Stock Activity (Details) - Restricted common stock - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Shares | ||
Shares, Unvested awards, beginning balance | 1,167 | 1,041 |
Shares, Awards granted | 58 | 577 |
Shares, Awards forfeited/cancelled | (40) | (79) |
Shares, Awards vested | (44) | (398) |
Shares, Unvested awards, ending balance | 1,141 | 1,141 |
Weighted-Average Grant Date Fair Value | ||
Weighted-Average Grant Date Fair Value, Unvested awards, beginning balance | $ 43.95 | $ 41.31 |
Weighted-Average Grant Date Fair Value, Awards granted | 46.78 | 47.75 |
Weighted-Average Grant Date Fair Value, Awards forfeited/cancelled | 44.76 | 43.37 |
Weighted-Average Grant Date Fair Value, Awards vested | 39.02 | 41.40 |
Weighted-Average Grant Date Fair Value, Unvested awards, ending balance | $ 44.26 | $ 44.26 |