Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 24, 2014 | Jun. 30, 2013 |
Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'HEARTLAND PAYMENT SYSTEMS INC | ' | ' |
Entity Central Index Key | '0001144354 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 36,701,106 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $1.30 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $71,932 | $48,440 | ' |
Funds held for customers | 127,375 | 131,405 | ' |
Receivables, net | 200,040 | 180,448 | ' |
Investments | 4,101 | 1,199 | ' |
Inventory | 11,087 | 9,694 | ' |
Prepaid expenses | 15,284 | 10,421 | ' |
Current tax assets | 10,426 | 0 | ' |
Current deferred tax assets, net | 9,548 | 10,475 | ' |
Assets held for sale | 0 | 17,044 | ' |
Total current assets | 449,793 | 409,126 | ' |
Capitalized customer acquisition costs, net | 61,027 | 56,425 | 55,014 |
Property and equipment, net | 147,388 | 125,031 | ' |
Goodwill | 190,978 | 168,062 | 94,255 |
Intangible assets, net | 49,857 | 53,594 | ' |
Deposits and other assets, net | 1,262 | 1,176 | ' |
Total assets | 900,305 | 813,414 | 596,921 |
Current liabilities: | ' | ' | ' |
Due to sponsor banks | 19,109 | 37,586 | ' |
Accounts payable | 70,814 | 64,065 | ' |
Customer fund deposits | 127,375 | 131,405 | ' |
Processing liabilities | 130,871 | 95,273 | ' |
Current portion of borrowings | 0 | 102,001 | ' |
Current portion of accrued buyout liability | 13,943 | 10,478 | ' |
Accrued expenses and other liabilities | 49,861 | 47,817 | ' |
Current tax liabilities | 0 | 4,323 | ' |
Liabilities related to assets held for sale | 0 | 1,672 | ' |
Total current liabilities | 411,973 | 494,620 | ' |
Deferred tax liabilities, net | 40,600 | 29,632 | ' |
Reserve for unrecognized tax benefits | 5,633 | 3,069 | 1,819 |
Long-term portion of borrowings | 150,000 | 50,000 | ' |
Long-term portion of accrued buyout liability | 25,436 | 24,932 | ' |
Total liabilities | 633,642 | 602,253 | ' |
Commitments and contingencies | ' | ' | ' |
Equity | ' | ' | ' |
Common stock, $0.001 par value, 100,000,000 shares authorized, 37,571,708 and 39,626,846 shares issued at December 31, 2012 and 2011; 36,855,908 and 38,847,957 outstanding at December 31, 2012 and 2011 | 37 | 38 | ' |
Additional paid-in capital | 245,055 | 222,705 | ' |
Accumulated other comprehensive loss | -88 | -399 | ' |
Retained earnings | 35,960 | 7,629 | ' |
Treasury stock, at cost (715,800 and 778,889 shares at December 31, 2012 and 2011) | -20,489 | -20,187 | ' |
Total stockholders’ equity | 260,475 | 209,786 | ' |
Noncontrolling interests | 6,188 | 1,375 | ' |
Total equity | 266,663 | 211,161 | 220,052 |
Total liabilities and equity | $900,305 | $813,414 | ' |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (Unaudited) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Equity | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 37,485,486 | 37,571,708 |
Common stock, shares outstanding | 36,950,886 | 36,855,908 |
Treasury Stock, shares | 534,600 | 715,800 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Total revenues | $2,135,372 | $2,013,436 | $1,985,577 |
Costs of services: | ' | ' | ' |
Interchange | 1,335,487 | 1,284,038 | 1,359,448 |
Dues, assessments and fees | 200,903 | 199,503 | 155,233 |
Processing and servicing | 237,232 | 216,863 | 208,542 |
Customer acquisition costs | 42,109 | 43,547 | 46,140 |
Depreciation and amortization | 19,975 | 19,750 | 14,368 |
Total costs of services | 1,835,706 | 1,763,701 | 1,783,731 |
General and administrative | 173,568 | 139,934 | 125,765 |
Total expenses | 2,009,274 | 1,903,635 | 1,909,496 |
Income from operations | 126,098 | 109,801 | 76,081 |
Other income (expense): | ' | ' | ' |
Interest income | 124 | 201 | 142 |
Interest expense | -5,429 | -3,446 | -4,122 |
Provision for processing system intrusion costs | -353 | -563 | -1,012 |
Other, net | 112 | -949 | -1,550 |
Total other (expense) income | -5,546 | -4,757 | -6,542 |
Income before income taxes | 120,552 | 105,044 | 69,539 |
Provision for income taxes | 46,450 | 40,691 | 26,551 |
Net income from continuing operations | 74,102 | 64,353 | 42,988 |
Income from discontinued operations, net of income tax of $803, $575 and $160 | 3,970 | 2,185 | 1,359 |
Net income | 78,072 | 66,538 | 44,347 |
Less: Net income (loss) attributable to noncontrolling interests | ' | ' | ' |
Continuing operations | -610 | 0 | 0 |
Discontinued operations | 56 | 649 | 408 |
Net income attributable to Heartland | 78,626 | 65,889 | 43,939 |
Amounts Attributable to Heartland: | ' | ' | ' |
Net income from continuing operations, net of noncontrolling interests | 74,712 | 64,353 | 42,988 |
Income from discontinued operations attributable to Heartland | 3,914 | 1,536 | 951 |
Net income attributable to Heartland | $78,626 | $65,889 | $43,939 |
Basic earnings per share: | ' | ' | ' |
Income from continuing operations (in dollars per share) | $2.03 | $1.67 | $1.10 |
Income from discontinued operations (in dollars per share) | $0.11 | $0.04 | $0.03 |
Basic earnings per share (in dollars per share) | $2.14 | $1.71 | $1.13 |
Diluted earnings per share: | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.96 | $1.60 | $1.07 |
Income from discontinued operations (in dollars per share) | $0.10 | $0.04 | $0.02 |
Diluted earnings per share (in dollars per share) | $2.06 | $1.64 | $1.09 |
Weighted average number of common shares outstanding: | ' | ' | ' |
Basic (in shares) | 36,791 | 38,468 | 38,931 |
Diluted (in shares) | 38,053 | 40,058 | 40,233 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parentheticals) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Expense (Benefit) | $46,450 | $40,691 | $26,551 |
Discontinued Operations [Member] | ' | ' | ' |
Income Tax Expense (Benefit) | $2,135 | $803 | $575 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | (Accumulated Deficit) Retained Earnings | Treasury Stock | Noncontrolling Interests |
In Thousands, except Share data, unless otherwise specified | |||||||
Stockholders' equity, beginning balance at Dec. 31, 2010 | $177,594 | $38 | $185,689 | $37 | ($8,471) | $0 | $301 |
Common stock, shares outstanding, beginning balance at Dec. 31, 2010 | ' | 38,415,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock - options exercised, shares | ' | 1,134,000 | ' | ' | ' | ' | ' |
Issuance of common stock - options exercised, amount | 9,685 | 1 | 9,684 | ' | ' | ' | ' |
Issuance of common stock - RSU's invested, shares | ' | 78,000 | ' | ' | ' | ' | ' |
Issuance of common stock - RSU's invested, amount | -732 | ' | -732 | ' | ' | ' | ' |
Excess tax benefit on stock options exercised | 3,454 | ' | 3,454 | ' | ' | ' | ' |
Repurchase of common stock, shares | ' | -779,000 | ' | ' | ' | ' | ' |
Repurchase of common stock, amount | -16,828 | ' | ' | ' | ' | -16,828 | ' |
Share-based compensation | 9,548 | ' | 9,548 | ' | ' | ' | ' |
Other comprehensive income (loss) | -784 | ' | ' | -717 | ' | ' | -67 |
Dividends on common stock | -6,232 | ' | ' | ' | -6,232 | ' | ' |
Net income | 44,347 | ' | ' | ' | 43,939 | ' | 408 |
Stockholders' equity, ending balance at Dec. 31, 2011 | 220,052 | 39 | 207,643 | -680 | 29,236 | -16,828 | 642 |
Common stock, shares outstanding, ending balance at Dec. 31, 2011 | ' | 38,848,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock - options exercised, shares | ' | 1,522,000 | ' | ' | ' | ' | ' |
Issuance of common stock - options exercised, amount | 18,303 | 2 | 18,301 | ' | ' | ' | ' |
Issuance of common stock - RSU's invested, shares | ' | 120,000 | ' | ' | ' | ' | ' |
Issuance of common stock - RSU's invested, amount | -1,641 | ' | -1,641 | ' | ' | ' | ' |
Excess tax benefit on stock options exercised | 5,954 | ' | 5,954 | ' | ' | ' | ' |
Repurchase of common stock, shares | ' | -3,634,000 | ' | ' | ' | ' | ' |
Repurchase of common stock, amount | -103,359 | ' | ' | ' | ' | -103,359 | ' |
Retirement of treasury stock, amount | 0 | -3 | -21,739 | ' | -78,258 | 100,000 | ' |
Share-based compensation | 14,187 | ' | 14,187 | ' | ' | ' | ' |
Other comprehensive income (loss) | 365 | ' | ' | 281 | ' | ' | 84 |
Dividends on common stock | -9,238 | ' | ' | ' | -9,238 | ' | ' |
Net income | 66,538 | ' | ' | ' | 65,889 | ' | 649 |
Stockholders' equity, ending balance at Dec. 31, 2012 | 211,161 | 38 | 222,705 | -399 | 7,629 | -20,187 | 1,375 |
Common stock, shares outstanding, ending balance at Dec. 31, 2012 | 36,855,908 | 36,856,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock - options exercised, shares | ' | 1,265,000 | ' | ' | ' | ' | ' |
Issuance of common stock - options exercised, amount | 14,174 | 1 | 14,173 | ' | ' | ' | ' |
Issuance of common stock - RSU's invested, shares | ' | 317,000 | ' | ' | ' | ' | ' |
Issuance of common stock - RSU's invested, amount | -6,233 | ' | -6,233 | ' | ' | ' | ' |
Excess tax benefit on stock options exercised | 11,596 | ' | 11,596 | ' | ' | ' | ' |
Repurchase of common stock, shares | ' | -1,487,000 | ' | ' | ' | ' | ' |
Repurchase of common stock, amount | -50,302 | ' | ' | ' | ' | -50,302 | ' |
Retirement of treasury stock, shares | ' | 0 | ' | ' | ' | ' | ' |
Retirement of treasury stock, amount | 0 | -2 | -10,024 | ' | -39,974 | 50,000 | ' |
Share-based compensation | 12,838 | ' | 12,838 | ' | ' | ' | ' |
Changes in equity from sale of discontinued operation | -1,332 | ' | ' | 83 | ' | ' | -1,415 |
Other comprehensive income (loss) | 212 | ' | ' | 228 | ' | ' | -16 |
Noncontrolling interests in subsidiary acquired | 6,798 | ' | ' | ' | ' | ' | 6,798 |
Dividends on common stock | -10,321 | ' | ' | ' | -10,321 | ' | ' |
Net income | 78,072 | ' | ' | ' | 78,626 | ' | -554 |
Stockholders' equity, ending balance at Dec. 31, 2013 | $266,663 | $37 | $245,055 | ($88) | $35,960 | ($20,489) | $6,188 |
Common stock, shares outstanding, ending balance at Dec. 31, 2013 | 36,950,886 | 36,951,000 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity Consolidate Statements of Equity (Parentheticals) (USD $) | 0 Months Ended | 12 Months Ended | |||||||||||||
Dec. 14, 2013 | Sep. 14, 2013 | Jun. 15, 2013 | Mar. 15, 2013 | Dec. 14, 2012 | Sep. 14, 2012 | Jun. 15, 2012 | Mar. 15, 2012 | Dec. 15, 2011 | Sep. 15, 2011 | Jun. 15, 2011 | Mar. 15, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock dividends (in dollars per share) | $0.07 | $0.07 | $0.07 | $0.07 | $0.06 | $0.06 | $0.06 | $0.06 | $0.04 | $0.04 | $0.04 | $0.04 | $0.28 | $0.24 | $0.16 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flow (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income | $78,072 | $66,538 | $44,347 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Amortization of capitalized customer acquisition costs | 45,648 | 45,125 | 47,188 |
Other depreciation and amortization | 35,389 | 28,213 | 27,837 |
Addition to loss reserves | 2,787 | 2,595 | 6,011 |
Provision for doubtful receivables | 195 | 1,043 | 2,423 |
Deferred taxes | 8,403 | 5,136 | 778 |
Share-based compensation | 12,838 | 14,187 | 9,548 |
Gain on sale of business | -3,786 | 0 | 0 |
Other | 1,034 | 1,066 | 2,044 |
Changes in operating assets and liabilities: | ' | ' | ' |
Increase in receivables | -19,693 | -665 | -1,409 |
Decrease (increase) in inventory | -1,343 | 1,460 | -194 |
Payment of signing bonuses, net | -29,091 | -29,320 | -29,035 |
Increase in capitalized customer acquisition costs | -21,159 | -17,216 | -14,276 |
(Increase) decrease in prepaid expenses | -2,664 | -612 | -1,677 |
Decrease (increase) in current tax assets | -3,138 | 9,118 | 23,522 |
(Increase) decrease in deposits and other assets | -1,118 | -451 | -65 |
Excess tax benefits on employee share-based compensation | -11,596 | -5,954 | -3,454 |
Increase (decrease) in reserve for unrecognized tax benefits | 2,564 | 1,251 | 510 |
Decrease in due to sponsor banks | -18,477 | -26,295 | -8,692 |
Increase in accounts payable | 2,136 | 11,840 | 3,779 |
Decrease in accrued expenses and other liabilities | -1,605 | -964 | -763 |
Increase (decrease) in processing liabilities | 32,761 | 61,993 | -4,104 |
Payouts of accrued buyout liability | -13,651 | -11,886 | -10,380 |
Increase in accrued buyout liability | 17,620 | 15,638 | 13,228 |
Net cash provided by (used in) operating activities | 112,126 | 171,840 | 107,166 |
Cash flows from investing activities | ' | ' | ' |
Purchase of investments held to maturity | -5,262 | -6,556 | -3,781 |
Maturities of investments held to maturity | 2,000 | 4,714 | 2,934 |
Increase in funds held for customers | 4,040 | -88,839 | -6,163 |
Increase in customer fund deposits | -4,030 | 88,893 | 5,988 |
Proceeds from sale of business | 19,343 | 0 | 0 |
Acquisitions of businesses, net of cash acquired | -15,182 | -103,470 | -23,165 |
Purchases of property and equipment | -52,924 | -34,549 | -36,543 |
Net cash used in investing activities | -52,015 | -139,807 | -60,730 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from borrowings | 156,416 | 133,000 | 0 |
Principal payments on borrowings | -161,001 | -66,003 | -38,287 |
Proceeds from exercise of stock options | 14,174 | 18,303 | 9,685 |
Excess tax benefits on employee share-based compensation | 11,596 | 5,954 | 3,454 |
Repurchases of common stock | -49,625 | -103,774 | -16,414 |
Dividends paid on common stock | -10,321 | -9,238 | -6,232 |
Net cash (used in) provided by financing activities | -38,761 | -21,758 | -47,794 |
Net increase (decrease) in cash | 21,350 | 10,275 | -1,358 |
Effect of exchange rates on cash | 1 | 5 | -70 |
Cash at beginning of year | 50,581 | 40,301 | 41,729 |
Cash at end of year | 71,932 | 50,581 | 40,301 |
Cash paid (received) during the period for: | ' | ' | ' |
Interest | 4,598 | 2,991 | 3,783 |
Income taxes | $38,827 | $25,832 | $2,349 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $78,072 | $66,538 | $44,347 |
Other comprehensive income (loss): | ' | ' | ' |
Unrealized gains (losses) on investments, net of income tax of $8, $21 and $(4) | 12 | 33 | -5 |
Unrealized gains (losses) on derivative financial instruments, net of tax of $153, $29 and ($341) | 254 | 51 | -556 |
Foreign currency translation adjustment | -54 | 281 | -223 |
Comprehensive income | 78,284 | 66,903 | 43,563 |
Less: Net income attributable to noncontrolling interests | -570 | 733 | 341 |
Comprehensive income attributable to Heartland | $78,854 | $66,170 | $43,222 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Unrealized gains (losses) on investments, tax | $8 | $21 | ($4) |
Unrealized losses on derivative financial instruments, tax | $153 | $29 | ($341) |
Organization_and_Operations
Organization and Operations | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||
Organization and Operations | ' | ||||
Organization and Operations | |||||
Basis of Financial Statement Presentation— The accompanying consolidated financial statements include those of Heartland Payment Systems, Inc. (the “Company,” “we,” “us,” or “our”) and its wholly-owned subsidiaries, Heartland Ovation Payroll, Inc. ("Ovation"), Educational Computer Systems, Inc. ("ECSI"), Debitek, Inc. (“Debitek”) and Heartland Acquisition LLC (“Network Services”), and as of September 11, 2013, Leaf Acquisition, LLC (which holds 66.67% of the outstanding capital stock of Leaf Holdings, Inc ("Leaf")), and until January 31, 2013, its previously 70% owned subsidiary Collective POS Solutions Ltd. (“CPOS”). The Company entered into an agreement during the fourth quarter of 2012 to sell CPOS. The transaction was settled on January 31, 2013 and the Company recorded a gain on the sale in the first quarter of 2013. The Company presents CPOS as a discontinued operation in the accompanying consolidated financial statements. See Note 20, Discontinued Operations for more detail. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. All intercompany balances and transactions with the Company's subsidiaries have been eliminated upon consolidation. | |||||
Business Description—The Company’s primary business is to provide card payment processing services to merchants throughout the United States, and until January 31, 2013 in Canada (See Note 20, Discontinued Operations for more detail). This involves providing end-to-end electronic payment processing services to merchants by facilitating the exchange of information and funds between them and cardholders' financial institutions. To accomplish this, the Company undertakes merchant set-up and training, transaction authorization and electronic draft capture, clearing and settlement, merchant accounting, merchant assistance and support, and risk management. Card payment processing services also includes selling and renting point-of-sale devices. The Company also provides additional services, including those provided through subsidiaries, such as: | |||||
• | School nutrition, point-of-sale solutions, and associated payment solutions, including online prepayment solutions to kindergarten through 12th grade ("K to 12") schools throughout the United States provided by Heartland School Solutions, | ||||
• | Full-service payroll processing and related tax filing services throughout the United States provided by Heartland Ovation Payroll, | ||||
• | Payment processing, higher education loan services and open- and closed-loop payment solutions to colleges and universities throughout the United States and Canada provided by Campus Solutions, | ||||
• | Prepaid Card including stored-value card solutions throughout the United States and Canada provided by Micropayments, and marketing solutions including loyalty and gift cards throughout the United States, provided through Heartland Marketing Solutions. | ||||
Over 73% of the Company's revenue is derived from processing and settling Visa and MasterCard bankcard | |||||
transactions for its merchant customers. Because the Company is not a ''member bank'' as defined by Visa and MasterCard, in | |||||
order to process and settle these bankcard transactions for its merchants, the Company has entered into sponsorship agreements | |||||
with member banks. Visa and MasterCard rules restrict the Company from performing funds settlement or accessing merchant | |||||
settlement funds and require that these funds be in the possession of the member bank until the merchant is funded. A | |||||
sponsorship agreement permits the Company to route Visa and MasterCard bankcard transactions under the member bank's | |||||
control and identification numbers to clear credit and signature debit bankcard transactions through Visa and MasterCard. A sponsorship agreement also enables the Company to settle funds between cardholders and merchants by delivering funding files to the member bank, which in turn transfers settlement funds to the merchants' bank accounts. These restrictions place the settlement assets and obligations under the control of the member bank. | |||||
The sponsorship agreements with the member banks require, among other things, that the Company abide by the bylaws and regulations of the Visa and MasterCard networks, and certain of the sponsor banks require a certificate of deposit or a cash balance in a deposit account. If the Company were to breach a sponsorship agreement and under certain circumstances, | |||||
the sponsor banks may terminate the agreement and, under the terms of the agreement, the Company would have 180 days to identify an alternative sponsor bank. The Company is generally dependent on its sponsor banks, Visa and MasterCard for notification of any compliance breaches. As of December 31, 2013, the Company has not been notified of any such issues by its sponsor banks, Visa or MasterCard. | |||||
At December 31, 2013, the Company is party to three bank sponsorship agreements. | |||||
• | On February 8, 2012, the Company entered into a sponsorship agreement with Wells Fargo Bank, N.A.("WFB"). The WFB sponsorship agreement will be in effect until February 8, 2016 and will automatically renew for successive three year periods unless either party provides six months written notice of non-renewal to the other party. Processing for small and mid-sized merchants (referred to as "Small and Midsized Enterprises," or “SME merchants”) under the WFB sponsorship commenced in August 2012, when that activity was transferred from its previous sponsor, KeyBank, National Association. | ||||
• | In November 2009, the Company entered into a sponsorship agreement with The Bancorp Bank ("TBB") to sponsor processing for the Company's Network Services merchants. The agreement with TBB expires in February 2015 and will automatically renew for successive one-year periods unless either party provides six months written notice of non-renewal to the other party. | ||||
On October 1, 2013, the Company transfered sponsorship and processing for a portfolio SME merchants from Heartland Bank to TBB. The Company was party to a prior sponsorship agreement with Heartland Bank, an unrelated third party, to sponsor SME merchant processing. In March 2013, the Company notified Heartland Bank of its intention to terminate the sponsorship agreement and made arrangements for continuing sponsorship with TBB under the terms of the November 2009 sponsorship agreement. | |||||
• | On March 24, 2011, the Company entered into a sponsorship agreement with Barclays Bank Delaware to sponsor processing for certain of the Company's large national merchants. The agreement with Barclays Bank Delaware expires in March 2016 and will automatically renew for successive one-year periods unless either party provides six months written notice of non-renewal to the other party. | ||||
Following is a breakout of the Company’s total Visa and MasterCard settled card processing volume for the month ending December 31, 2013 by percentage processed under its individual bank sponsorship agreements: | |||||
% of December 2013 | |||||
Sponsor Bank | Card Processing | ||||
Volume | |||||
Wells Fargo Bank, N.A. | 67% | ||||
The Bancorp Bank | 22% | ||||
Barclays Bank Delaware | 11% | ||||
The Company also provides card transaction processing for DFS Services, LLC ("Discover") and is designated as an acquirer by Discover. The agreement with Discover allows the Company to acquire, process and fund transactions directly through Discover's network without the need of a bank sponsor. The Company processes Discover transactions similarly to how it processes Visa and MasterCard transactions. The Company must comply with Discover acquirer operating regulations and uses its sponsor banks to assist in funding its merchants' Discover transactions. | |||||
Under a sales and servicing program agreement with American Express Travel Related Services Company, Inc. ("American Express") the Company: (a) provides solicitation services by signing new-to-American Express merchants directly with American Express; (b) provides transactional support services on behalf of American Express to the Company's American Express accepting merchants; and (c) provides processing, settlement, customer support and reporting to merchants, similar to the services provided for the merchants' Visa, MasterCard and Discover transactions. | |||||
Working Capital— The Company's working capital, defined as current assets less current liabilities, was positive by $37.8 million at December 31, 2013 and negative by $85.5 million at December 31, 2012. The change in working capital from negative to positive from 2012 to 2013 resulted primarily from refinancing the Company’s Prior Credit Agreement and classifying borrowings of $150.0 million under the new Revolving Credit Facility as a long-term liability at December 31, 2013. The revolving borrowings under the Prior Credit Facility at December 31, 2012 were classified as a current liability because management's intent was to repay the revolving borrowings within twelve months. The refinancing occurred on October 23, 2013. During 2012, the working capital was negative primarily due to classifying $102.0 million of the Company's borrowings under the Prior Credit Facility as current liabilities and using $103.4 million of operating cash to repurchase 3,634,044 shares of the Company's common stock during 2012. See Note 10, Credit Facilities for information on the Company's Revolving Credit Facility and Note 12, Stockholders' Equity for information on common stock repurchases. The Company believes that its current cash and investment balances, cash generated from operations and its agreements with its sponsor banks to fund SME merchant advances will provide sufficient liquidity to meet its anticipated needs for operating capital for at least the next twelve months. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
Summary of Significant Accounting Policies | |||||||||
Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates include, among other things, the accrued buyout liability, capitalized customer acquisition costs, goodwill, loss reserves, certain accounts payable and accrued expenses and certain tax assets and liabilities as well as the related valuation allowances, if any. Actual results could differ from those estimates. | |||||||||
Cash and Cash Equivalents— At December 31, 2013, cash included approximately $32.1 million of processing-related cash in transit and collateral, compared to approximately $31.6 million of processing-related cash in transit and collateral at December 31, 2012. Processing-related cash in transit and collateral includes funds in transit associated with timing differences arising between the amounts our sponsor banks receive from the bankcard networks and the amounts funded by the Company’s merchants. Processing related cash in transit and collateral also includes merchant deposits, collateral deposits, and funds in transit relating to timing differences for non-card payment processing businesses. | |||||||||
Receivables—The Company's primary receivables are from its bankcard processing merchants. In addition to receivables for transaction fees the Company charges its merchants for processing transactions, these receivables include amounts resulting from the Company's practice of advancing interchange fees to most of its SME merchants during the month and collecting those fees at the beginning of the following month. The Company does not advance interchange fees to its Network Services merchants. Network Services merchants are invoiced monthly, on payment terms of 30 days net from date of invoicing. Receivables from merchants also include receivables from the sale of point-of-sale terminal equipment. | |||||||||
Historically, the Company funded interchange advances to its SME merchants first with its available cash, and when that cash had been expended, by directing its sponsor banks to fund advances thereby incurring a payable to sponsor banks. In the fourth quarter of 2012, the Company accelerated the end-of-day presentment of transaction funding files to the bankcard networks resulting in its sponsor banks receiving settlement cash one day earlier and increasing funding obligations to its SME merchants, which are carried in processing liabilities. As a result of accelerated presentment, the Company funds these merchant interchange advances/receivables first from the accelerated settlement cash received from bankcard networks, then from the Company's available cash or by incurring a payable to its sponsor banks. At December 31, 2013, the Company did not use any of its available cash to fund merchant advances. At December 31, 2012, the Company used $3.8 million of its available cash to fund merchant advances. The amount due to sponsor banks for funding advances was $17.8 million at December 31, 2013 and $36.3 million at December 31, 2012. The Company pays its sponsor banks the prime rate on these payables. The payable to sponsor banks is repaid at the beginning of the following month out of the fees the Company collects from its merchants. | |||||||||
Receivables also include amounts resulting from the pre-funding of Discover and American Express transactions to the Company's merchants as well as amounts due from PIN debit transactions. These amounts are recovered the next business day following the date of processing the transaction. | |||||||||
Receivables also include amounts resulting from the sale, installation, training and repair of payment system hardware and software for Campus Solutions, Heartland School Solutions and Prepaid Card systems. These receivables are mostly invoiced on terms of 30 days net from date of invoicing. | |||||||||
Receivables are stated net of allowance for doubtful accounts. The Company estimates its allowance based on experience with its merchants, customers, and sales force and its judgment as to the likelihood of their ultimate payment. The Company also considers collection experience and makes estimates regarding collectability based on trends in the aging. Historically, the Company has not experienced significant charge offs for its merchant and customer receivables. | |||||||||
Investments and Funds Held for Customers—Investments, including those carried on the Consolidated Balance Sheets as Funds held for customers, consist primarily of equity investments, fixed income bond funds and certificates of deposit. Funds held for customers also include overnight bank deposits. The majority of investments carried in Funds held for customers are available-for-sale and recorded at fair value based on quoted market prices. Certificates of deposit are classified as held to maturity and recorded at cost. In the event of a sale, cost is determined on a specific identification basis. At December 31, 2013, Funds held for customers included cash and cash equivalents of $114.1 million and investments available for sale of $13.2 million. | |||||||||
The asset funds held for customers and the liability customer fund deposits include: (i) amounts collected from customers prior to funding their payroll liabilities, as well as related tax and fiduciary liabilities for those customers, and (ii) amounts collected by Campus Solutions in its capacity as loan servicer, which will be remitted to the customer/owner of the student loans the following month. | |||||||||
Inventories—Inventories consist of point-of-sale terminal equipment held for sale to merchants, prepaid card and cashless payment systems hardware for sale to end users, resellers and distributors, and campus payments solutions equipment for sale to end users. Inventories are valued at the lower of cost or market price. Cost is arrived at using the first-in, first-out method. Market price is estimated based on current sales of equipment. | |||||||||
Inventories also include purchased data encryption software licenses held for sale to merchants who acquire the Company's End-to-End Encryption Solution (“E3”) for processing bankcard transactions, or purchase the upgraded terminal and point-of-sale devices incorporating E3. | |||||||||
Capitalized Customer Acquisition Costs, net—Capitalized customer acquisition costs consist of (1) up-front signing bonus payments made to Relationship Managers and sales managers (the Company's sales force, which are referred to as "salespersons") for the establishment of new merchant relationships, and (2) a deferred acquisition cost representing the estimated cost of buying out the residual commissions of vested salespersons. Capitalized customer acquisition costs represent incremental, direct customer acquisition costs that are recoverable through gross margins associated with merchant contracts. The capitalized customer acquisition costs are amortized using a method which approximates a proportional revenue approach over the initial three-year term of the merchant contract. | |||||||||
The up-front signing bonus paid for new SME bankcard, payroll and loyalty marketing accounts is based on the estimated gross margin for the first year of the merchant contract. The signing bonus, amount capitalized, and related amortization are adjusted after the first year to reflect the actual gross margin generated by the merchant contract during that year. The deferred customer acquisition cost asset is accrued over the first year of SME bankcard, payroll and loyalty marketing merchant processing, consistent with the build-up in the accrued buyout liability, as described below. | |||||||||
Management evaluates the capitalized customer acquisition costs for impairment on an annual basis by comparing, on a pooled basis by vintage month of origination, the expected future net cash flows from underlying merchant relationships to the carrying amount of the capitalized customer acquisition costs. If the estimated future net cash flows are lower than the recorded carrying amount, indicating an impairment of the value of the capitalized customer acquisition costs, the impairment loss will be charged to operations. | |||||||||
The Company believed that no impairment of capitalized customer acquisition costs had occurred as of December 31, 2013 and 2012. | |||||||||
Property and Equipment—Property and equipment are carried at cost, net of accumulated depreciation. Depreciation for the Company's owned service center building in Jeffersonville, Indiana is computed straight-line over 39 years with depreciation on certain building improvements computed over 15 years. Depreciation is computed straight-line over periods ranging from 3 to 10 years for furniture and equipment. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. | |||||||||
Equipment held under capitalized lease arrangements is included in property and equipment, and the associated liabilities are included in current and long-term borrowings as appropriate. Amortization of equipment under capitalized leases is included in depreciation and amortization expense. | |||||||||
Fully depreciated property and equipment are retained in property and equipment and accumulated depreciation accounts until their disposal or removal from service. When fully depreciated property and equipment is taken out of service, the original cost basis and matching accumulated depreciation amounts are written off. | |||||||||
Rent expense on operating leases is recorded on a straight-line basis over the term of the lease agreement. Tenant improvement allowances are deferred and amortized on a straight-line basis over the life of the lease agreement as a reduction to rent expense. | |||||||||
The Company capitalizes software development costs and amortizes such costs on a straight-line basis over an estimated useful life of 3 to 7 years. Preliminary project costs incurred prior to establishing technological feasibility are charged to operations as such costs are incurred. Once technological feasibility is established, costs are capitalized until the software is placed in service. | |||||||||
Long-Lived Assets—The Company evaluates the potential for impairment when changes in circumstances indicate that undiscounted cash flows estimated to be generated by the related assets are less than the carrying amount. Management believed that no such changes in circumstances or impairment have occurred as of December 31, 2013 or 2012. | |||||||||
Goodwill— Goodwill represents the excess of acquisition costs over the fair values of net assets acquired in business combinations. The Company has recorded goodwill in connection with it acquisitions, including the 2011, 2012 and 2013 acquisitions of Comalex, mySchoolBucks, School-Link, Lunch Byte, Educational Computer Systems, Ovation Payroll and Leaf. Goodwill is tested for impairment at least annually and between annual tests if an event occurs or changes in circumstances suggest a potential decline in the fair value of the reporting unit. A significant amount of judgment is involved in determining if an indicator or change in circumstances relating to impairment has occurred. Such changes may include, among others: a significant decline in expected future cash flows; a sustained decline in market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; and slower growth rates. The Company performs its annual goodwill impairment testing in the fourth quarter. The Company's evaluation indicated that no impairment exists and the fair value of each reporting unit subject to the impairment evaluation exceeded the carrying value as of December 31, 2013 and 2012. At December 31, 2013 and 2012, goodwill of $191.0 million and $168.1 million, respectively, was recorded on the Company's Consolidated Balance Sheets. | |||||||||
Accrued Expenses and Other Liabilities— Accrued expenses and other liabilities on the Consolidated | |||||||||
Balance Sheets includes deferred revenue of $18.2 million and $13.0 million at December 31, 2013 and 2012, respectively, which is primarily related to the Company's Heartland School Solutions, Campus Solutions, and Payroll businesses. | |||||||||
Also included in accrued expenses and other liabilities at December 31, 2013 and 2012 is $3.4 million and $7.3 million, respectively, relating to the allocation of purchase price to an unfavorable processing contract associated with our September 30, 2011 acquisition of School-Link Technologies, Inc. During 2013, we recorded an adjustment to the carrying value of this unfavorable processing contract of $1.6 million to adjust the liability to reflect the latest estimate of the expected cash processing costs to be paid over the remainder of the contract. During the years ended 2013 and 2012, we amortized $2.4 million and $3.0 million of this accrued liability against the cash processing costs paid under that contract. This amortization was included in Cost of services in our Consolidated Statements of Income. | |||||||||
Processing Liabilities—Processing liabilities result primarily from the Company's card processing activities. | |||||||||
Processing liabilities primarily reflect funds in transit associated with differences arising between the amounts our sponsor banks receive from the bankcard networks and the amounts funded to the Company's merchants. Such differences arise from timing differences, interchange expense, merchant advances, merchant reserves and chargeback processing. These differences result in payables or receivables. If the settlement received from the bankcard networks precedes the funding obligation to the merchant, the Company records a processing liability. Conversely, if funding to the merchant precedes the settlement from the bankcard networks, the Company records a receivable from the bankcard network. In addition, certain bankcard networks restrict the Company from accessing merchant settlement funds and require that these funds be controlled by the Company's sponsor banks. The amounts are generally collected or paid the following business day. | |||||||||
Chargebacks periodically arise due to disputes between a cardholder and a merchant resulting from the cardholder's dissatisfaction with merchandise quality or the merchant's service, and the disputes may not always be resolved in the merchant's favor. In some of these cases, the transaction is ''charged back'' to the merchant and the purchase price is refunded to the cardholder by the credit card-issuing institution. If the merchant is unable to fund the refund, the Company is liable for the full amount of the transaction. The Company's obligation to stand ready to perform is minimal. The Company maintains a deposit or the pledge of a letter of credit from certain merchants as an offset to potential contingent liabilities that are the responsibility of such merchants. The Company evaluates its ultimate risk and records an estimate of potential loss for chargebacks based upon an assessment of actual historical loss rates compared to recent bankcard processing volume levels. The Company believes that the liability recorded as loss reserves approximates fair value. | |||||||||
Accrued Buyout Liability—The Company's Relationship Managers and sales managers are paid residual commissions based on the gross margin generated by monthly SME merchant processing activity. The Company has the right, but not the obligation, to buy out some or all of these commissions, and intends to do so periodically. Such purchases of the commissions are at a fixed multiple of the last twelve months' commissions. Because of the Company's intent and ability to execute purchases of the residual commissions, and the mutual understanding between the Company and the Relationship Managers and sales managers, the Company has accounted for this deferred compensation arrangement pursuant to the substantive nature of the plan. The Company therefore records the amount that it would have to pay (the ''settlement cost'') to buy out non-servicing related commissions in their entirety from vested Relationship Managers and sales managers, and an accrual, based on their progress towards vesting, for those unvested Relationship Managers and sales managers who are expected to vest in the future. As noted above, as the liability increases over the first year of a SME merchant contract, the Company also records a related deferred acquisition cost asset for currently vested Relationship Managers and sales managers. The accrued buyout liability associated with unvested Relationship Managers and sales managers is not included in the deferred acquisition cost asset since future services are required in order to vest. Subsequent changes in the estimated accrued buyout liability due to merchant attrition, same-store sales growth and changes in gross margin are included in the same income statement caption as customer acquisition costs expense. | |||||||||
Beginning in June 2012, Relationship Managers and sales managers earn portfolio equity on their newly installed payroll and loyalty marketing merchant accounts based on the residual commissions they earn on those accounts. The accrued buyout liability and deferred acquisition cost asset are accrued in the same manner as the SME bankcard merchant portfolio equity. | |||||||||
The accrued buyout liability is based on merchants under contract at the balance sheet date, the gross margin generated by those merchants over the prior twelve months, and the contractual buyout multiple. The liability related to a new merchant is therefore zero when the merchant is installed, and increases over the twelve months following the installation date. The same procedure is applied to unvested commissions over the expected vesting period, but is further adjusted to reflect the Company's estimate that 31% of unvested Relationship Managers and sales managers become vested, which represents the Company's historical vesting rate. | |||||||||
The classification of the accrued buyout liability between current and non-current liabilities on the Consolidated Balance Sheets is based upon the Company's estimate of the amount of the accrued buyout liability that it reasonably expects to pay over the next twelve months. This estimate is developed by calculating the cumulative annual average percentage that total historical buyout payments represent of the accrued buyout liability. That percentage is applied to the period-end accrued buyout liability to determine the current portion. | |||||||||
Revenue—The Company classifies its revenues into five categories: Card Payment Processing, Heartland School Solutions, Heartland Ovation Payroll, Campus Solutions and Prepaid Card/Other. The Company recognizes revenue when (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the price is fixed or determinable; and (4) collectability is reasonably assured. | |||||||||
Card Payment Processing revenue primarily consists of discount, per-transaction and periodic (primarily monthly) fees from the processing of Visa, MasterCard, American Express and Discover transactions for SME merchants and per-transaction fees for the authorization and settlement of transactions for Network Services merchants. Also included in this category are American Express and Discover servicing fees, merchant service fees, fees for processing chargebacks, termination fees on terminated contracts and fees from selling, renting and deploying point-of-sale devices. Interchange fees, which are the Company’s most significant expense, are set by the card networks and paid to the card issuing banks. For the majority of SME card processing revenue, the Company does not offset processing revenues and interchange fees because its business practice is to advance the interchange fees to most SME merchants when settling their daily transactions (thus paying the full amount of the transaction to the merchant), and then to collect the full discount fees from merchants on the first business day of the next month. The Company has merchant portability, credit risk, and the ultimate responsibility to the merchant and, as such, revenue is reported at the time of settlement on a gross basis. Payment processing services are transaction based and priced either as a fixed fee per transaction or calculated as a percentage of the transaction value. The fees are charged for the processing services provided and do not include the gross sales price paid by the ultimate buyer to the merchant. For SME merchants to whom the Company does not advance interchange, it records card processing revenues net of interchange fees. As Network Services does not advance interchange fees to its merchants, the Company records its card processing revenues net of interchange fees. | |||||||||
The Company evaluates its contractual arrangements for indications that multiple element arrangements may exist. For contracts with multiple deliverables, the Company records revenue based on vendor specific objective evidence of selling price where applicable, or based on the best estimate of the selling price. | |||||||||
Heartland School Solutions revenues include fees from sales and maintenance of cafeteria point-of-sale solutions and associated payment solutions, including online prepayment solutions, back office management and hardware and technical support. Revenues are recorded at the time of shipment, over the maintenance period, or at the provision of services. | |||||||||
Heartland Ovation Payroll revenue includes fees charged for payroll processing services, including check printing, direct deposit, related federal, state and local tax deposits and providing accounting documentation and interest income earned on funds held for customers. Revenues are recorded at the time service is provided. | |||||||||
Campus Solutions revenue includes fees associated with providing solutions to support administrative services for higher education, including student loan payment processing, delinquency and default services, refund management, tuition payment plans, electronic billing and payment, tax document services, and business outsourcing. Campus Solutions revenue also includes fees from the sale and maintenance of open- and closed-loop payment hardware and software solutions for college or university campuses to process small value electronic transactions. Revenues are recorded at the time of shipment, over the maintenance period, or at the provision of services. | |||||||||
Prepaid Card and Other revenues include Micropayments fees from selling hardware and software for unattended online wireless credit card based payment systems, and unattended value top up systems for off-line closed-loop smart (chip) card based payment systems. Also included in this category are Heartland Marketing Solutions fees from selling mobile and card-based marketing services, gift cards and rewards services. Revenues are recorded at the time of shipment, over the maintenance period, or at the provision of services. | |||||||||
Loss Contingencies and Legal Expenses—The Company records a liability for loss contingencies when the liability is probable and the amount is reasonably estimable. Legal fees associated with loss contingencies are recorded when the legal fees are incurred. The Company records recoveries from its insurance providers when cash is received from the provider. | |||||||||
Other Income (Expense)—Other income (expense) consists of interest income on cash and investments, the interest expense on our borrowings, the gains or losses on the disposal of property and equipment and other non-operating income or expense items. | |||||||||
In 2013, other income (expense) includes: | |||||||||
• | Pre-tax income of $0.2 million relating to the sale of a group of merchant contracts within our Prepaid Card business. | ||||||||
• | Pre-tax charges of $0.4 million related to the Provision for Processing System Intrusion costs. See Note 17, Commitments and Contingencies for information on the Processing System Intrusion. | ||||||||
In 2012, other income (expense) includes: | |||||||||
• | Pre-tax charges of $0.9 million primarily due to write downs of capitalized information technology development projects. | ||||||||
• | Pre-tax charges of $0.6 million related to the Provision for Processing System Intrusion costs. | ||||||||
In 2011, other income (expense) includes: | |||||||||
Ÿ Pre-tax charges of $0.8 million reflecting the costs (primarily staff termination costs and fixed asset write downs) associated with closing of the Company's Johnson City, Tennessee service center. | |||||||||
Ÿ A pre-tax charge of $1.1 million reflecting costs associated with the decision to discontinue Express Funds, the Company's remote deposit capture product, including writedowns of receivables, inventory, customer acquisition costs and fixed assets. | |||||||||
Ÿ A pre-tax charge of $1.0 million for legal fees and costs incurred for defending various claims and actions associated with the Processing System Intrusion. | |||||||||
• | Pre-tax income of $0.3 million related to an earnout payment relating to the 2010 sale of SME merchant bankcard processing contracts. | ||||||||
Income Taxes—The Company accounts for income taxes by recognizing deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statements and the tax basis of assets and liabilities using enacted tax rates. The impact on deferred assets and liabilities of a change in tax rates is recognized in the period that the rate change is enacted. Valuation allowances are recorded when it is determined that it is more likely than not that a deferred tax asset will not be realized. | |||||||||
In the fourth quarter of 2012, the Company entered into an agreement to sell CPOS. Because the Company would no longer be indefinitely reinvesting undistributed earnings of CPOS, the Company recognized income tax expense net of foreign tax credits, of $0.4 million in 2012 on the Company's 70% portion of the CPOS cumulative undistributed earnings at December 31, 2012. See Note 13, Income Taxes and Note 20, Discontinued Operation, for more detail. | |||||||||
Share–Based Compensation—The Company expenses employee share-based payments under the fair value method. Share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. | |||||||||
Excess tax benefits are generated when employees exercise non-qualified stock options, make disqualifying dispositions of shares acquired through their exercise of incentive stock options and vest in restricted share units. | |||||||||
These excess tax benefits are reported as a financing cash inflow rather than a reduction of taxes paid, which is included within operating cash flows. Accordingly, cash provided by operating activities decreased and cash provided by financing activities increased by $11.6 million in 2013, $6.0 million in 2012 and $3.5 million in 2011 related to excess tax benefits from stock-based awards. | |||||||||
Earnings per Share—Basic earnings per share was computed by dividing net income by weighted average number of common shares outstanding during the period. Diluted earnings per share was computed based on the weighted average outstanding common shares plus equivalent shares assuming exercise of stock options and vesting of Restricted Share Units, where dilutive. | |||||||||
Derivative Financial Instruments—The Company utilizes derivative instruments to manage interest rate risk on certain borrowings under its Credit Agreement (as defined in Note 10 herein). The Company recognizes the fair value of derivative financial instruments in the Consolidated Balance Sheets in investments, or accrued expenses and other liabilities. Changes in fair value of derivative instruments are recognized immediately in earnings unless the derivative is designated and qualifies as a hedge of future cash flows. For derivatives that qualify as hedges of future cash flows, the effective portion of changes in fair value is recorded in other comprehensive income and reclassified into interest expense in the same periods during which the hedged item affects earnings. Any ineffectiveness of cash flow hedges would be recognized in other income (expense) in the Consolidated Statements of Income during the period of change. | |||||||||
In January 2011, the Company entered into fixed-pay amortizing interest rate swaps having an initial notional amount of $50 million as a hedge of future cash flows on the variable rate debt outstanding under its credit facilities. These interest rate swaps convert the related notional amount of variable rate debt to fixed rate. The following table summarizes the components of the interest rate swaps. | |||||||||
December 31, 2013 | 31-Dec-12 | ||||||||
(In thousands) | |||||||||
Notional value | $ | 25,000 | $ | 35,000 | |||||
Fair value (a) | (411 | ) | (817 | ) | |||||
Deferred tax benefit | 153 | 313 | |||||||
(a) Recorded as a liability in accrued expenses and other liabilities | |||||||||
Foreign Currency—The Canadian dollar was the functional currency of CPOS, which operated in Canada. CPOS' revenues and expenses were translated at the average exchange rates prevailing during the period. The foreign currency assets and liabilities of CPOS were translated at the period-end rate of exchange. The resulting translation adjustment was allocated between the Company and CPOS' noncontrolling interests and is recorded as a component of other comprehensive income. At December 31, 2012, the cumulative foreign currency translation reflected a loss of $45,000. CPOS was sold in a transaction which settled on January 31, 2013. See Note 20, Discontinued Operations for more detail. | |||||||||
Noncontrolling Interests— Noncontrolling interests represent noncontrolling stockholders' share of the equity and after-tax net income or loss of Leaf as of December 31, 2013 and CPOS as of December 31, 2012. | |||||||||
Noncontrolling stockholders' share of after-tax net income or loss of Leaf is included in Net income (loss) attributable to noncontrolling interests as of December 31, 2013, continuing operations in the Consolidated Statements of Income for the year ended December 31, 2013. The minority stockholders' interests included in noncontrolling interests in the December 31, 2013 Consolidated Balance Sheet is $6.2 million and reflects the original investments by these minority shareholders in Leaf, along with their proportionate share of earnings or losses of Leaf. Noncontrolling stockholders' share of after-tax net income or loss of CPOS is included in Net income (loss) attributable to noncontrolling interests as of December 31, 2012, discontinued operations in the Consolidated Statements of Income for the year ended December 31, 2012. The minority stockholders' interests included in noncontrolling interests in the December 31, 2012 Consolidated Balance Sheet was $1.4 million and reflected the original investments by these minority shareholders in CPOS, along with their proportionate share of earnings or losses of CPOS. CPOS was sold in a transaction which settled on January 31, 2013. See Note 20, Discontinued Operations for more detail. | |||||||||
Subsequent Events—The Company evaluated subsequent events through the issuance date with respect to the Consolidated Financial Statements as of and for the year ended December 31, 2013. | |||||||||
New Accounting Pronouncements—From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standards setting bodies that are adopted by us as of the specified effective date. | |||||||||
In July 2013, the FASB issued an accounting standard update which provides guidance on the risks that are permitted to be hedged in a fair value or cash flow hedge. Among those risks for financial assets and financial liabilities is the risk of changes in a hedged item's fair value or a hedged transaction's cash flows attributable to changes in the designated benchmark interest rate (referred to as interest rate risk). This update is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The implementation of this update did not have a material effect on the Company's Consolidated Financial Statements. | |||||||||
In July 2013, the FASB issued an accounting standard update which provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this update are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryfowards, similar tax losses, or tax credit carryforwards exist. The amendments in this update are effective for fiscal years and interim periods within those years, beginning after December 15, 2013, with early adoption permitted. The amendments would be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The implementation of this update is not expected to have a material effect on the Company's Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
Acquisitions | ||||
The Company initiated its Heartland School Solutions business through its acquisitions of the school solutions businesses operated by Lunchbox, Comalex, mySchoolBucks, School-Link Technologies and Lunch Byte Systems which currently serves approximately 4,400, 3,700, 900, 10,000 and 10,000 schools, respectively. The combined Heartland School Solutions develops, manufactures, sells, services and maintains computer software designed to facilitate accounting and management functions of school food service operations. These acquisitions provide the Company with the ability to offer Internet payment capability to parents, which facilitates on-line deposits of funds into student accounts. The Company has consolidated the individual platforms and products. Pro forma results of operations have not been presented because the effect of these acquisitions were not material in the years acquired. The entire amount of goodwill is expected to be deductible for income tax reporting. Details of the individual acquisition transactions follow: | ||||
Lunchbox | ||||
On December 30, 2010, the Company purchased for a $7.7 million cash payment the net assets of the K to 12 School Solutions business previously operated by Lunchbox. The acquisition was financed through a combination of cash on hand and our credit facilities. The transaction was accounted for under the purchase method of accounting. Beginning December 30, 2010, Lunchbox's results of operations are included in the Company's results of operations. The allocation of the total purchase price was as follows: $6.0 million to goodwill, $1.9 million to intangible assets and $0.2 million to net tangible liabilities. | ||||
Comalex, Inc. | ||||
On January 12, 2011, the Company purchased for a $6.1 million cash payment the net assets of Comalex, Inc. The acquisition was funded with cash on hand. The transaction was accounted for under the purchase method of accounting. Beginning January 12, 2011, Comalex's results of operations are included in the Company's results of operations. The allocation of the total purchase price was as follows: $4.9 million to goodwill, $1.8 million to intangible assets and $0.6 million to net tangible liabilities. | ||||
mySchoolBucks LLC | ||||
On February 4, 2011, the Company purchased for a $1.5 million cash payment the net assets of mySchoolBucks, LLC. The acquisition was funded with cash on hand. The transaction was accounted for under the purchase method of accounting. Beginning February 4, 2011, mySchoolBucks' results of operations are included in the Company's results of operations. The allocation of the total purchase price was as follows: $1.0 million to goodwill and $0.5 million to intangible assets. | ||||
School-Link Technologies, Inc. | ||||
On September 30, 2011, the Company purchased for a $15.6 million cash payment the net assets of School-Link Technologies, Inc. The acquisition was funded with cash on hand. The transaction was accounted for under the purchase method of accounting. Beginning October 1, 2011, School-Link's results of operations are included in the Company's results of operations. The allocation of the total purchase price was as follows: $25.2 million to goodwill, $4.3 million to intangible assets, $2.8 million to net tangible liabilities, and $11.1 million to the liability for an unfavorable processing contract. The fair values of School-Link's assets acquired and liabilities assumed were estimated as of their acquisition date. | ||||
Lunch Byte Systems, Inc. | ||||
On June 29, 2012, the Company purchased for a $26.0 million cash payment the net assets of Lunch Byte Systems, Inc. (a.k.a. "Nutrikids"). The $26.0 million cash payment made on June 29, 2012 was funded through the Company's credit facilities and subsequently repaid with cash on hand in July 2012. Beginning July 1, 2012, Lunch Byte's results of operations are included in the Company's results of operations. The transaction was accounted for under the purchase method of accounting. The allocation of the total purchase price was as follows: $16.1 million to goodwill, $7.0 million to intangible assets and $2.9 million to net tangible assets. | ||||
Other acquisition transactions in 2012 included: | ||||
Educational Computer Systems, Inc. | ||||
On December 14, 2012, the Company purchased for a $37.6 million cash payment, the stock of Education Computer Systems, Inc. ("ECSI") and net assets of related entities. The cash purchase price was financed under the Company's Credit Facility. The acquisition expanded the Company's Campus Solutions division. ECSI supports the entire life cycle of higher education and post-graduation school/student services, including student loan payment processing, default solutions, refund services, tuition payment plans, electronic billing and payment, tax document services, and business outsourcing to more than 1,800 colleges and universities nationwide. With this acquisition, the Company's Campus Solutions business gained ECSI’s client portfolio, increasing the number of higher education clients to more than 2,000 colleges and universities throughout North America. | ||||
The transaction was accounted for under the purchase method of accounting. Beginning December 15, 2012, ECSI results of operations were included in the Company's results of operations. The allocation of the total purchase price was as follows: $32.5 million to goodwill, $10.5 million to intangible assets and $5.4 million to net tangible liabilities. Pro forma results of operations have not been presented because the effect of this acquisition was not material. Only a portion of the goodwill is expected to be deductible for income tax reporting. | ||||
Ovation Payroll, Inc. | ||||
On December 31, 2012, the Company purchased for a $44.2 million cash payment, the stock of Ovation Payroll, Inc. ("Ovation"). The cash purchase price was financed under the Company's Credit Facility. The acquisition expands the Company's existing payroll processing business. Ovation serves over 10,000 clients in 48 states providing payroll processing, payroll tax preparation, Internet payroll reporting, and direct deposit. | ||||
The transaction was accounted for under the purchase method of accounting. Beginning January 1, 2013, Ovation's results of operations were included in the Company's results of operations. The allocation of the total purchase price was as follows: $31.0 million to goodwill, $6.6 million to intangible assets and $6.6 million to net tangible assets. Pro forma results of operations have not been presented because the effect of this acquisition was not material. Goodwill is not expected to be deductible for income tax reporting. | ||||
Leaf Holdings, Inc. | ||||
On September 11, 2013, the Company purchased 66.67% of the outstanding capital stock of Leaf for a $14.5 million cash payment. The cash purchase price was financed from operating cash flows. | ||||
The transaction was accounted for under the purchase method of accounting. Beginning on September 11, 2013, Leaf's results of operations are included in the Company's results of operations. The allocation of the total purchase price was as follows: $20.6 million to goodwill, $6.9 million to intangible assets, $6.2 million to net tangible liabilities and $6.8 million to noncontrolling interest. Pro forma results of operations have not been presented because the effect of this acquisition was not material. Goodwill is not expected to be deductible for income tax reporting. | ||||
The weighted average amortization life for the 2013 acquired finite lived intangible assets related to acquisition of Leaf is as follows: | ||||
Weighted-average amortization life | ||||
(In years) | ||||
Software | 7 | |||
Patents | 5 | |||
Overall | 6.9 |
Receivables
Receivables | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||
Receivables | ' | ||||||||||||||
Receivables | |||||||||||||||
A summary of receivables by major class was as follows at December 31, 2013 and 2012: | |||||||||||||||
December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||
Accounts receivable from merchants | $ | 172,147 | $ | 160,702 | |||||||||||
Accounts receivable from bankcard networks | 26,842 | 19,588 | |||||||||||||
Accounts receivable from others | 2,083 | 1,596 | |||||||||||||
201,072 | 181,886 | ||||||||||||||
Less allowance for doubtful accounts | (1,032 | ) | (1,438 | ) | |||||||||||
Total receivables, net | $ | 200,040 | $ | 180,448 | |||||||||||
Included in accounts receivable from others are amounts due from employees (predominately salespersons), which are $1.1 million and $0.4 million at December 31, 2013 and 2012, respectively. Accounts receivable related to bankcard networks are primarily amounts which were pre-funded to merchants for processing Discover and American Express bankcard transactions as well as amounts due from Visa for PIN debit transactions. | |||||||||||||||
A summary of the activity in the allowance for doubtful accounts for the three years ended December 31, 2013, 2012 | |||||||||||||||
and 2011 was as follows: | Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
(In thousands) | |||||||||||||||
Beginning balance | $ | 1,438 | $ | 1,407 | $ | 661 | |||||||||
Additions to allowance | 180 | 818 | 2,234 | ||||||||||||
Charges against allowance | (586 | ) | (787 | ) | (1,488 | ) | |||||||||
Ending balance | $ | 1,032 | $ | 1,438 | $ | 1,407 | |||||||||
Funds_Held_for_Customers_and_I
Funds Held for Customers and Investments | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Funds Held for Payroll Customers and Investments [Abstract] | ' | |||||||||||||||
Funds Held for Customers and Investments | ' | |||||||||||||||
Funds Held for Customers and Investments | ||||||||||||||||
A summary of Funds held for customers and investments, including the cost, gross unrealized gains (losses) and estimated fair value for investments held to maturity and investments available-for-sale by major security type and class of security was as follows at December 31, 2013 and 2012: | ||||||||||||||||
Cost | Gross | Gross | Estimated | |||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Funds Held for Customers: | ||||||||||||||||
Conservative income bond fund - available for sale | $ | 12,000 | $ | 10 | $ | — | $ | 12,010 | ||||||||
Fixed income bond fund - available for sale | 968 | 254 | — | 1,222 | ||||||||||||
Cash held for payroll customers | 88,376 | — | — | 88,376 | ||||||||||||
Cash held for Campus Solutions customers | 25,767 | — | — | 25,767 | ||||||||||||
Total Funds held for customers | $ | 127,111 | $ | 264 | $ | — | $ | 127,375 | ||||||||
Investments: | ||||||||||||||||
Investments held to maturity - Certificates of deposit (a) | $ | 33 | $ | — | $ | — | $ | 33 | ||||||||
Total investments | $ | 33 | $ | — | $ | — | $ | 33 | ||||||||
Cost | Gross | Gross | Estimated | |||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
December 31, 2012 | ||||||||||||||||
Funds Held for Customers: | ||||||||||||||||
Fixed income bond fund - available for sale | $ | 968 | $ | 244 | $ | — | $ | 1,212 | ||||||||
Cash held for payroll customers | 110,334 | — | — | 110,334 | ||||||||||||
Cash held for Campus Solutions customers | 19,859 | — | — | 19,859 | ||||||||||||
Total Funds held for customers | $ | 131,161 | $ | 244 | $ | — | $ | 131,405 | ||||||||
Investments: | ||||||||||||||||
Investments held to maturity - Certificates of deposit | $ | 1,199 | $ | — | $ | — | $ | 1,199 | ||||||||
Total investments | $ | 1,199 | $ | — | $ | — | $ | 1,199 | ||||||||
(a) Certificates of deposit have remaining term of 8 months. | ||||||||||||||||
Also included in Investments on the Consolidated Balance Sheet are other investments, at cost. As of December 31, 2013, other investments, at cost, includes a $4.0 million investment in the equity of ATX Innovation, Inc. ("Tabbedout"). | ||||||||||||||||
During the twelve months ended December 31, 2013 and 2012, the Company did not experience any other-than-temporary losses on its investments. | ||||||||||||||||
All available-for-sale debt securities and held to maturity investments, having aggregate amortized cost of $5.1 million and estimated fair value of $5.3 million, respectively, as of December 31, 2013, are due in one year or less. |
Capitalized_Customer_Acquisiti
Capitalized Customer Acquisition Costs, Net | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Capitalized Customer Acquisition Costs, Net [Abstract] | ' | |||||||||||||
Capitalized Customer Acquisition Costs, Net | ' | |||||||||||||
Capitalized Customer Acquisition Costs, Net | ||||||||||||||
A summary of net capitalized customer acquisition costs as of December 31, 2013 and 2012 was as follows: | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||
Capitalized signing bonuses | $ | 86,886 | $ | 84,728 | ||||||||||
Less accumulated amortization | (43,775 | ) | (42,941 | ) | ||||||||||
43,111 | 41,787 | |||||||||||||
Capitalized customer deferred acquisition costs | 45,241 | 37,736 | ||||||||||||
Less accumulated amortization | (27,325 | ) | (23,098 | ) | ||||||||||
17,916 | 14,638 | |||||||||||||
Capitalized customer acquisition costs, net | $ | 61,027 | $ | 56,425 | ||||||||||
A summary of the activity in capitalized customer acquisition costs, net for the three years ended December 31, 2013, | ||||||||||||||
2012 and 2011 was as follows: | Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(In thousands) | ||||||||||||||
Balance at beginning of period | $ | 56,425 | $ | 55,014 | $ | 59,251 | ||||||||
Plus additions to: | ||||||||||||||
Capitalized signing bonuses, net | 29,091 | 29,320 | 29,035 | |||||||||||
Capitalized customer deferred acquisition costs | 21,159 | 17,216 | 14,276 | |||||||||||
50,250 | 46,536 | 43,311 | ||||||||||||
Less amortization expense on: | ||||||||||||||
Capitalized signing bonuses, net (a) | (27,767 | ) | (29,244 | ) | (32,088 | ) | ||||||||
Capitalized customer deferred acquisition costs | (17,881 | ) | (15,881 | ) | (15,460 | ) | ||||||||
(45,648 | ) | (45,125 | ) | (47,548 | ) | |||||||||
Balance at end of period | $ | 61,027 | $ | 56,425 | $ | 55,014 | ||||||||
Net signing bonus adjustments from estimated amounts to actual were $(3.7) million, $(3.1) million, and $(1.5) million, respectively, for the years ended December 31, 2013, 2012 and 2011, representing reductions of amounts paid. Net signing bonus adjustments are netted against additions in the table above. Negative signing bonus adjustments occur when the actual gross margin generated by the merchant contract during the first year is less than the estimated gross margin for that year, resulting in the overpayment of the up-front signing bonus and would be recovered from the relevant salesperson. Positive signing bonus adjustments result from the prior underpayment of signing bonuses and would be paid to the relevant salesperson. | ||||||||||||||
Fully amortized signing bonuses of $27.8 million, $31.2 million and $42.3 million, respectively, were written off during the three years ended December 31, 2013, 2012, and 2011. In addition, fully amortized customer deferred acquisition costs of $13.7 million, $16.0 million and $16.4 million, respectively, were written off during the three years ended December 31, 2013, 2012 and 2011. | ||||||||||||||
The Company believes that no impairment of capitalized customer acquisition costs has occurred as of December 31, 2013 and 2012. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment, Net [Abstract] | ' | ||||||||
Property and Equipment, Net | ' | ||||||||
Property and Equipment, Net | |||||||||
A summary of property and equipment, net as of December 31, 2013 and 2012 is as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Computer hardware and software | $ | 184,515 | $ | 151,916 | |||||
Building | 54,910 | 54,359 | |||||||
Leasehold improvements | 7,815 | 5,734 | |||||||
Furniture, fixtures and equipment | 17,761 | 16,342 | |||||||
Land | 7,427 | 5,873 | |||||||
272,428 | 234,224 | ||||||||
Less accumulated depreciation | (125,040 | ) | (109,193 | ) | |||||
$ | 147,388 | $ | 125,031 | ||||||
Depreciation expense for the three years ended December 31, 2013, 2012 and 2011 was $30.1 million, $25.7 million and $23.0 million, respectively. | |||||||||
Included in property and equipment at December 31, 2013 and 2012 was $30.2 million and $17.0 million, respectively, representing the cost of assets not yet placed in service. During the years ended December 31, 2013 , 2012, and 2011 the amount of capitalized costs for internally developed projects amounted to $38.4 million, $26.7 million, and $22.6 million, respectively. During the years ended December 31, 2013, 2012, and 2011 the amounts of capitalized costs for internally developed projects placed in service were $25.7 million, $22.7 million, and $15.9 million, respectively. | |||||||||
As of December 31, 2013 and 2012 there were $42.4 million and $34.1 million, respectively, of net capitalized costs for internally developed projects placed into service. | |||||||||
The estimated depreciation expense related to capitalized costs for internally developed projects placed in service for the next five years is as follows: | |||||||||
For the Years Ended December 31, | |||||||||
(In thousands) | |||||||||
2014 | $ | 18,624 | |||||||
2015 | 12,914 | ||||||||
2016 | 6,709 | ||||||||
2017 | 1,810 | ||||||||
2018 | 1,463 | ||||||||
Thereafter | 857 | ||||||||
$ | 42,377 | ||||||||
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets and Goodwill | ' | ||||||||||||||||||||||||
Intangible Assets and Goodwill | |||||||||||||||||||||||||
Intangible Assets — Intangible assets consisted of the following as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
December 31, 2013 | Amortization Life and Method | ||||||||||||||||||||||||
Gross | Accumulated | Net Asset | |||||||||||||||||||||||
Assets | Amortization | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Finite Lived Assets: | |||||||||||||||||||||||||
Customer relationships | $ | 49,814 | $ | 14,107 | $ | 35,707 | 3 to 18 years—proportional cash flow | ||||||||||||||||||
Merchant portfolio | 4,095 | 2,703 | 1,392 | 7 years—proportional cash flow | |||||||||||||||||||||
Software | 20,750 | 10,934 | 9,816 | 2 to 5 years—straight line | |||||||||||||||||||||
Non-compete agreements | 4,489 | 1,880 | 2,609 | 3 to 5 years—straight line | |||||||||||||||||||||
Other | 385 | 52 | 333 | 2 to 9 years—straight line | |||||||||||||||||||||
$ | 79,533 | $ | 29,676 | $ | 49,857 | ||||||||||||||||||||
December 31, 2012 | Amortization Life and Method | ||||||||||||||||||||||||
Gross | Accumulated | Net Asset | |||||||||||||||||||||||
Assets | Amortization | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Finite Lived Assets: | |||||||||||||||||||||||||
Customer relationships | $ | 52,125 | $ | 8,318 | $ | 43,807 | 3 to 18 years—proportional cash flow | ||||||||||||||||||
Merchant portfolio | 3,345 | 2,316 | 1,029 | 7 years—proportional cash flow | |||||||||||||||||||||
Software | 14,150 | 9,016 | 5,134 | 3 to 5 years—straight line | |||||||||||||||||||||
Non-compete agreements | 4,590 | 1,030 | 3,560 | 3 to 5 years—straight line | |||||||||||||||||||||
Other | 85 | 21 | 64 | 2 to 9 years—straight line | |||||||||||||||||||||
$ | 74,295 | $ | 20,701 | $ | 53,594 | ||||||||||||||||||||
Amortization expense related to the intangible assets was $9.0 million, $5.1 million and $4.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
The estimated amortization expense related to intangible assets for the next five years is as follows: | |||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2014 | $ | 8,499 | |||||||||||||||||||||||
2015 | 7,954 | ||||||||||||||||||||||||
2016 | 6,952 | ||||||||||||||||||||||||
2017 | 5,628 | ||||||||||||||||||||||||
2018 | 4,398 | ||||||||||||||||||||||||
Thereafter | 16,426 | ||||||||||||||||||||||||
$ | 49,857 | ||||||||||||||||||||||||
Goodwill — The changes in the carrying amount of goodwill by segment for the years ended December 31, 2013, | |||||||||||||||||||||||||
2012 and 2011 were as follows: | Card Payment Processing | Heartland Ovation Payroll | Heartland School Solutions | Campus Solutions | Other | Total | |||||||||||||||||||
Balance at January 1, 2011 | $ | 43,701 | $ | — | $ | 5,507 | $ | 3,321 | $ | 6,501 | $ | 59,030 | |||||||||||||
Goodwill acquired during the period | — | — | 34,506 | — | — | 34,506 | |||||||||||||||||||
Other (a) | — | — | 719 | — | — | 719 | |||||||||||||||||||
Balance at December 31, 2011 | 43,701 | — | 40,732 | 3,321 | 6,501 | 94,255 | |||||||||||||||||||
Goodwill acquired during the period | — | 30,831 | 15,231 | 30,358 | — | 76,420 | |||||||||||||||||||
Other (a) | — | — | (2,613 | ) | — | — | (2,613 | ) | |||||||||||||||||
Balance at December 31, 2012 | 43,701 | 30,831 | 53,350 | 33,679 | 6,501 | 168,062 | |||||||||||||||||||
Goodwill acquired during the period | 20,619 | — | — | — | — | 20,619 | |||||||||||||||||||
Other (a) | — | 187 | — | 2,110 | — | 2,297 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 64,320 | $ | 31,018 | $ | 53,350 | $ | 35,789 | $ | 6,501 | $ | 190,978 | |||||||||||||
(a) Reflects adjustments to preliminary allocations of purchase price within the measurement period. | |||||||||||||||||||||||||
Percentage of total reportable segments' assets that was goodwill as of December 31, 2013, 2012, and 2011 is as | |||||||||||||||||||||||||
follows: | Percent of Goodwill to Reportable Segments' Total Assets | ||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Card Payment Processing | 11.30% | 9.40% | 9.70% | ||||||||||||||||||||||
Heartland Ovation Payroll | 19.90% | 18.50% | — | ||||||||||||||||||||||
Heartland School Solutions | 67.90% | 74.90% | 77.60% | ||||||||||||||||||||||
Campus Solutions | 43.80% | 43.60% | 48.70% | ||||||||||||||||||||||
Other | 37.70% | 20.00% | 20.30% | ||||||||||||||||||||||
Processing_Liabilities
Processing Liabilities | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Processing Liabilities and Loss Reserves [Abstract] | ' | ||||||||||||
Processing Liabilities and Loss Reserves | ' | ||||||||||||
Processing Liabilities | |||||||||||||
Processing liabilities result primarily from the Company's card processing activities and include merchant deposits maintained to offset potential liabilities from merchant chargeback processing. A summary of processing liabilities and loss reserves was as follows at December 31, 2013 and 2012: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Merchant bankcard processing | $ | 121,143 | $ | 86,882 | |||||||||
Merchant deposits | 8,223 | 6,436 | |||||||||||
Loss reserves | 1,505 | 1,955 | |||||||||||
$ | 130,871 | $ | 95,273 | ||||||||||
In addition to the merchant deposits listed above, the Company held letters of credit related to merchant bankcard processing totaling $260,000 and $100,000 at December 31, 2013 and 2012, respectively. | |||||||||||||
The Company's merchants have the liability for any charges properly reversed by the cardholder through a mechanism known as a chargeback. If the merchant is unable to pay this amount, the Company will be liable to the card brand networks for the reversed charges. The Company has determined that the fair value of its obligation to stand ready to perform is minimal. The Company requires personal guarantees and merchant deposits from certain merchants to minimize its obligation. | |||||||||||||
The card networks generally allow chargebacks up to four months after the later of (1) the date the transaction is processed or (2) the delivery of the product or service to the cardholder. As the majority of the Company's SME merchant transactions involve the delivery of the product or service at the time of the transaction, a reasonable basis for determining an estimate of the Company's exposure to chargebacks is the last four months' processing volume on the SME portfolio, which was $24.4 billion and $23.5 billion for the four months ended December 31, 2013 and 2012, respectively. However, for the four months ended December 31, 2013 , 2012, and 2011 the Company was presented with $11.7 million, $11.8 million, and $12.2 million, respectively, in chargebacks by issuing banks. In the years ended December 31, 2013, 2012, and 2011 the Company incurred merchant credit losses of $3.1 million , $2.0 million, and $5.1 million, respectively, on total SME card processing volumes processed of $74.6 billion , $71.7 billion, $67.5 billion, respectively. These credit losses are included in processing and servicing costs in the Company's Consolidated Statements of Income and Other Comprehensive Income. | |||||||||||||
The loss recorded by the Company for chargebacks associated with any individual merchant is typically small, due both to the relatively small size and the processing profile of the Company's SME merchants. However, from time to time the Company will encounter instances of merchant fraud, and the resulting chargeback losses may be considerably more significant to the Company. The Company has established a contingent reserve for estimated currently existing credit and fraud losses on its Consolidated Balance Sheets, amounting to $1.5 million at December 31, 2013 and $2.0 million at December 31, 2012. This reserve is determined by performing an analysis of the Company's historical loss experience applied to current processing volume and exposures. | |||||||||||||
A summary of the activity in the loss reserve for the years ended December 31, 2013, 2012, and 2011 was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Beginning balance | $ | 1,955 | $ | 1,957 | 1,625 | ||||||||
Additions to reserve | 2,738 | 2,123 | 5,658 | ||||||||||
Charges against reserve (a) | (3,188 | ) | (2,125 | ) | (5,326 | ) | |||||||
Ending balance | $ | 1,505 | $ | 1,955 | 1,957 | ||||||||
(a) | Included in these amounts are Payroll Processing segment losses for the years ended December 31, 2013, 2012, and 2011 of $111,000, $93,000 and $223,000 | ||||||||||||
Chargeback losses originating from Network Services' bankcard processing on Passport during the years ended December 31, 2013, 2012, and 2011 were immaterial. |
Credit_Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Credit Facilities | ' |
Credit Facilities | |
On October 23, 2013, the Company entered into a Credit Agreement (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and certain lenders who are a party to the Credit Agreement. This Credit Agreement replaces the Company's November 2010 Second Amended and Restated Credit Agreement (the "Prior Credit Agreement”). Credit extended under the Credit Agreement is guaranteed by the Company's subsidiaries and is secured by substantially all of the Company's assets and the assets of the Company's subsidiaries. | |
The Credit Agreement provides for a revolving credit facility in the aggregate amount of up to $350 million (the “Revolving Credit Facility”), of which up to $35 million may be used for the issuance of letters of credit and up to $35 million is available for swing line loans. The Revolving Credit Facility also provides for, upon the prior approval of the administrative agent and subject to the receipt of commitments, an increase to the total revolving commitments of $150 million for a total commitment under the Revolving Credit Facility of $500 million. The Revolving Credit Facility is available to the Company on a revolving basis until October 23, 2018. All principal and interest not previously paid on the Revolving Credit Facility will mature and be due and payable on October 23, 2018. | |
The Credit Agreement and the Prior Credit Agreement contain covenants which include: maintenance of certain leverage and fixed charge coverage ratios; limitations on our indebtedness, liens on our properties and assets, investments in, and loans to other business units, our ability to enter into business combinations and asset sales; and certain other financial and non-financial covenants. These covenants also apply to the Company's subsidiaries. The Company was in compliance with these covenants as of December 31, 2013. | |
The Prior Credit Agreement provided a term credit facility (the “Term Credit Facility”). The Term Credit Facility required amortization payments in the amount of $5.0 million for each fiscal quarter during the fiscal years ended December 31, 2013 and 2014, and $7.5 million for each fiscal quarter during the period commencing on January 1, 2015 through the Term Credit Facility maturity date on November 24, 2015. | |
On October 23, 2013, the Company drew down $150.0 million on its Revolving Credit Facility and used those proceeds to repay borrowings then outstanding under its Prior Credit Agreement; $55.0 million under the Term Credit Facility and $91.0 million under the Prior Credit Agreement revolving credit facility (the "Prior Revolving Credit Facility"). The remainder of the proceeds from the Revolving Credit Facility was used to provide ongoing working capital and for other general purposes. At December 31, 2013, the Company had $150.0 million under the Credit Agreement. | |
At December 31, 2012, the Company had $70.0 million outstanding under the Term Credit Facility and $82.0 million outstanding under the Prior Revolving Credit Facility. | |
Under the terms of the Credit Agreement, the Company may borrow, at its option, at interest rates equal to one, two, three or six month adjusted LIBOR rates, or equal to the greater of the prime rate, the federal funds rate plus 0.50% and the adjusted LIBOR rate plus 1%, in each case plus a margin determined by the Company's current leverage ratio. | |
The weighted average interest rate at December 31, 2013 was 1.7%. Total fees and direct costs paid for the Company's credit facilities as of December 31, 2013 were $3.3 million, including $2.6 million paid on October 23, 2013. These costs are being amortized to interest expense over the life of the Credit Agreement. |
Accrued_Buyout_Liability
Accrued Buyout Liability | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Accrued Buyout Liability [Abstract] | ' | |||||||||||||
Accrued Buyout Liability | ' | |||||||||||||
Accrued Buyout Liability | ||||||||||||||
A summary of the accrued buyout liability was as follows as of December 31, 2013 and 2012: | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||
Vested Relationship Managers and sales managers | $ | 38,082 | $ | 33,926 | ||||||||||
Unvested Relationship Managers and sales managers | 1,297 | 1,484 | ||||||||||||
39,379 | 35,410 | |||||||||||||
Less current portion | (13,943 | ) | (10,478 | ) | ||||||||||
Long-term portion of accrued buyout liability | $ | 25,436 | $ | 24,932 | ||||||||||
In calculating the accrued buyout liability for unvested Relationship Managers and sales managers, the Company has assumed that 31% of the unvested Relationship Managers and sales managers will vest in the future, which represents the Company’s historical vesting rate. A 5% increase to 36% in the expected vesting rate would have increased the accrued buyout liability for unvested Relationship Managers and sales managers by $0.1 million at December 31, 2013 and 2012. | ||||||||||||||
A summary of the activity in the accrued buyout liability for the three years ended December 31, 2013, 2012, and | ||||||||||||||
2011 was as follows: | Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(In thousands) | ||||||||||||||
Beginning balance | $ | 35,410 | $ | 31,658 | $ | 28,810 | ||||||||
Increase in settlement obligation, net | 17,620 | 15,638 | 13,228 | |||||||||||
Buyouts | (13,651 | ) | (11,886 | ) | (10,380 | ) | ||||||||
Ending balance | $ | 39,379 | $ | 35,410 | $ | 31,658 | ||||||||
The Company buys out portfolio equity regularly. During 2013, 2012 and 2011, we made total buyout payments of approximately $13.7 million, $11.9 million and $10.4 million, respectively. Residual commission expense is recorded in Processing and servicing costs on the Consolidated Statement of Income. The amount of future annual reductions in residual commission expense will be impacted by any additional portfolio equity buyouts and merchant attrition. Partially offsetting the impact of these buyouts are increases in the settlement obligation due to new SME merchant account signings, as adjusted for changes in same-store sales growth, changes in gross margin for existing merchant relationships, and the impact of SME merchant attrition. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||
Stockholders' Equity | ||||||||||||||||||
Common Stock Repurchases. On each of October 21, 2011, July 27, 2012 and November 2, 2012, the Company's Board of Directors authorized the repurchase of up to $50 million of the Company's outstanding common stock. Repurchases under the October 21, 2011 and July 27, 2012 authorizations were completed during the year ended December 31, 2012 and repurchases under the November 2, 2012 authorization were completed during the second quarter of 2013. Repurchases under these programs were made through the open market in accordance with applicable laws and regulations. On May 8, 2013, the Company's Board of Directors authorized the repurchase of up to $75 million of the Company's outstanding common stock. Repurchases under the May 8, 2013 authorization are ongoing. The Company intends to fund any repurchases with cash flow from operations, existing cash on the balance sheet, and other sources including the Company's Revolving Credit Facility and the proceeds of options exercises. The manner, timing and amount of repurchases, if any, will be determined by management and will depend on a variety of factors, including price, corporate and regulatory requirements, market conditions and other corporation liquidity requirements. The repurchase program may be modified or discontinued at any time. | ||||||||||||||||||
A summary of repurchase activity under these authorizations is as follows: | ||||||||||||||||||
Repurchase Programs by Authorization Date | ||||||||||||||||||
Oct-11 | Jul-12 | Nov-12 | May-13 | Total | ||||||||||||||
Activity For the Year ended December 31, 2013 | ||||||||||||||||||
Shares repurchased | — | — | 952,183 | 534,600 | 1,486,783 | |||||||||||||
Cost of shares repurchased (in thousands) | — | — | $29,813 | $20,488 | $50,301 | |||||||||||||
Average cost per share | — | — | $31.31 | $38.32 | $33.83 | |||||||||||||
Remaining authorization (in thousands) | — | — | — | $54,512 | $54,512 | |||||||||||||
Activity For the Year ended December 31, 2012 | ||||||||||||||||||
Shares repurchased | 1,157,440 | 1,760,804 | 715,800 | — | 3,634,044 | |||||||||||||
Cost of shares repurchased (in thousands) | $33,172 | $50,000 | $20,187 | — | $103,359 | |||||||||||||
Average cost per share | $28.66 | $28.40 | $28.20 | — | $28.44 | |||||||||||||
Activity For the Year ended December 31, 2011 | ||||||||||||||||||
Shares repurchased | 778,889 | — | — | — | 778,889 | |||||||||||||
Cost of shares repurchased (in thousands) | $16,828 | — | — | — | $16,828 | |||||||||||||
Average cost per share | $21.61 | — | — | — | $21.61 | |||||||||||||
On November 1, 2012, the Company's board of directors resolved to retire all common shares repurchased and include the retired shares in the authorized and unissued shares of the Company. Until November 1, 2012, the final disposition of the repurchased shares had not been decided. The excess of the purchase price of the treasury stock over the stated value was allocated between additional paid-in-capital and retained earnings. It is expected that future retirements of common shares repurchased will be recorded as repurchase authorizations are completed. | ||||||||||||||||||
Dividends on Common Stock. During the years ended December 31, 2013, 2012 and 2011, the Company's Board of Directors declared the following quarterly cash dividends on common stock: | ||||||||||||||||||
Date Declared | Record Date | Date Paid | Amount Paid | |||||||||||||||
Per Common Share | ||||||||||||||||||
Twelve Months Ended December 31, 2013 | ||||||||||||||||||
February 7, 2013 | March 4, 2013 | March 15, 2013 | $0.07 | |||||||||||||||
April 30, 2013 | May 24, 2013 | June 15, 2013 | $0.07 | |||||||||||||||
July 30, 2013 | August 23, 2013 | September 13, 2013 | $0.07 | |||||||||||||||
October 29, 2013 | November 22, 2013 | December 13, 2013 | $0.07 | |||||||||||||||
Twelve Months Ended December 31, 2012 | ||||||||||||||||||
February 8, 2012 | March 2, 2012 | March 15, 2012 | $0.06 | |||||||||||||||
May 1, 2012 | May 24, 2012 | June 15, 2012 | $0.06 | |||||||||||||||
July 27, 2012 | August 24, 2012 | September 14, 2012 | $0.06 | |||||||||||||||
November 1, 2012 | November 23, 2012 | December 14, 2012 | $0.06 | |||||||||||||||
Twelve Months Ended December 31, 2011 | ||||||||||||||||||
February 16, 2011 | March 4, 2011 | March 15, 2011 | $0.04 | |||||||||||||||
May 13, 2011 | May 24, 2011 | June 15, 2011 | $0.04 | |||||||||||||||
August 2, 2011 | August 24, 2011 | September 15, 2011 | $0.04 | |||||||||||||||
October 21, 2011 | November 24, 2011 | December 15, 2011 | $0.04 | |||||||||||||||
On February 5, 2014, the Company's Board of Directors declared a quarterly cash dividend of $0.085 per share of common stock, payable on March 14, 2014 to stockholders of record as of March 3, 2014. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||
Income Taxes | |||||||||||||||||||||
The provision for income taxes for the three years ended December 31, 2013, 2012, and 2011 consists of the | |||||||||||||||||||||
following: | Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Continuing Operations: | (in thousands) | ||||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | 31,326 | $ | 32,155 | $ | 23,949 | |||||||||||||||
State | 4,810 | 3,481 | 740 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | 8,766 | 3,737 | (435 | ) | |||||||||||||||||
State | 1,548 | 1,318 | 2,297 | ||||||||||||||||||
Total provision for income taxes from continuing operations | 46,450 | 40,691 | 26,551 | ||||||||||||||||||
The differences in federal income taxes provided (benefited) from continuing operations and the amounts determined by applying the federal statutory tax rate of 35% to income before income taxes for the three years ended December 31, 2013, 2012, and 2011 are: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
% | Amount | % | Amount | % | Amount | ||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | |||||||||||||||||||
U.S. federal income tax at statutory rate | 35 | % | $ | 42,193 | 35 | % | $ | 36,765 | 35 | % | $ | 24,338 | |||||||||
U.S. state and local income taxes, net | 3.26 | % | 3,932 | 2.93 | % | 3,065 | 2.88 | % | 2,001 | ||||||||||||
Nondeductible expenses | 0.52 | % | 621 | 0.46 | % | 492 | 0.37 | % | 261 | ||||||||||||
Research and development credit, net | (1.19 | )% | (1,435 | ) | — | % | — | — | — | ||||||||||||
Valuation allowance | 0.6 | % | 724 | — | % | — | (0.01 | )% | (5 | ) | |||||||||||
U.S. tax on foreign income, net | — | % | — | 0.38 | % | 400 | — | — | |||||||||||||
Other | 0.34 | % | 415 | (0.03 | )% | (31 | ) | (0.06 | )% | (44 | ) | ||||||||||
Provision for income taxes from | 38.53 | % | $ | 46,450 | 38.74 | % | $ | 40,691 | 38.18 | % | $ | 26,551 | |||||||||
continuing operations | |||||||||||||||||||||
On January 2, 2013, the American Taxpayer Relief Act of 2012 ("ATR Act") was enacted which included an extension of the federal research and development credit retroactively to 2012 and prospectively for 2013. The effect of the research and development credit for 2012 is being reflected in 2013 in conjunction with the filing of the Company’s 2012 tax return. The effect of the estimated research and development credit for 2013 is also reflected in 2013. The research and development credit expired December 31, 2013 and has not been renewed. | |||||||||||||||||||||
As discussed in Note 20, Discontinued Operations, in the fourth quarter of 2012, the Company entered into an agreement to sell CPOS. Because the Company would no longer be indefinitely reinvesting undistributed earnings of CPOS, the Company recognized income tax expense net of foreign tax credits, of $0.4 million in 2012 on the Company's 70% portion of the CPOS cumulative undistributed earnings at December 31, 2012. The Company presented CPOS as a discontinued operation in the accompanying consolidated financial statements. | |||||||||||||||||||||
The Company recorded a liability of approximately $5.6 million, $3.1 million and $1.8 million for total gross unrecognized tax benefits of which approximately $3.8 million, $2.0 million and $1.1 million as of December 31, 2013, 2012 and 2011, respectively, would impact the effective tax rate. The Company does not expect any significant changes | |||||||||||||||||||||
within the next twelve months in its unrecognized tax benefits. | |||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013, 2012, and 2011 is as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Balance at January 1, | $ | 3,069 | $ | 1,819 | $ | 1,309 | |||||||||||||||
Additions based on tax positions related to the current year | 2,681 | 1,429 | 637 | ||||||||||||||||||
Lapse of statute of limitations | (117 | ) | (32 | ) | (127 | ) | |||||||||||||||
Settlements | — | (147 | ) | — | |||||||||||||||||
Balance at December 31, | $ | 5,633 | $ | 3,069 | $ | 1,819 | |||||||||||||||
The Company accrues interest related to uncertain tax positions in interest expense and accrues penalties in general and administrative expense. At December 31, 2013, 2012, and 2011 the Company had an accrued interest liability on uncertain tax positions of approximately $441,000, $281,000, and $216,000, respectively. During 2013, 2012, and 2011 the Company recognized $160,000, $65,000, and $48,000, respectively, of interest expense related to uncertain tax positions. The Company does not expect to be assessed any penalties on its uncertain tax positions. | |||||||||||||||||||||
The tax years ended December 31, 2011 and 2012 remain subject to examination by the U.S. Internal Revenue Service and the Company is no longer subject to state income tax examinations prior to 2007, except in California where a Protest of Proposed Assessments for the years 2004 to 2008 is currently in progress. Currently the Company does not expect that its state liability will significantly increase or decrease during the next 12 months. The Company files income tax returns in all states where required. | |||||||||||||||||||||
During 2013 and 2012, the Company recorded current tax assets reflecting excess tax benefits of $11.6 million and $6.0 million, respectively, resulting from employees exercising non-qualified stock options, making disqualifying dispositions of shares acquired through their exercise of incentive stock options, and vesting of restricted share units. The Company classified the $11.6 million and $6.0 million of excess tax benefits for 2013 and 2012, respectively, as cash inflows from financing activities and cash outflows from operating activities in its Consolidated Statement of Cash Flows. | |||||||||||||||||||||
The net deferred tax asset (liability) was comprised of the following at December 31, 2013 and 2012: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Deferred tax assets: | (In thousands) | ||||||||||||||||||||
Merchant contract costs | $ | 8,542 | $ | 8,165 | |||||||||||||||||
Loss reserve and accounts receivable allowance | 859 | 1,189 | |||||||||||||||||||
Share-based compensation | 8,154 | 8,702 | |||||||||||||||||||
FIN No. 48 deferred tax reserve-state tax | 1,968 | 1,185 | |||||||||||||||||||
Other comprehensive income | 170 | 312 | |||||||||||||||||||
Net operating loss carry-forward | 11,034 | 8,333 | |||||||||||||||||||
Reserve for litigation | 591 | 605 | |||||||||||||||||||
State net operating loss carry-forwards | 24 | 30 | |||||||||||||||||||
Reserve for processor incentive | 44 | 217 | |||||||||||||||||||
Deferred compensation | 2,632 | 2,950 | |||||||||||||||||||
Deferred state tax assets | 1,487 | 1,141 | |||||||||||||||||||
Other | 1,229 | 799 | |||||||||||||||||||
Deferred tax assets | 36,734 | 33,628 | |||||||||||||||||||
Less valuation allowance | (2,906 | ) | (158 | ) | |||||||||||||||||
Net deferred tax assets | 33,828 | 33,470 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Capitalized signing bonus | 17,173 | 16,068 | |||||||||||||||||||
Software development | 27,419 | 18,970 | |||||||||||||||||||
Unearned rent | (240 | ) | 227 | ||||||||||||||||||
Property and equipment | 3,597 | 3,916 | |||||||||||||||||||
Goodwill | 12,591 | 9,044 | |||||||||||||||||||
Investment in CPOS | — | 400 | |||||||||||||||||||
Intangibles | 4,340 | 4,002 | |||||||||||||||||||
Deferred tax liabilities | 64,880 | 52,627 | |||||||||||||||||||
Net deferred tax liabilities | (31,052 | ) | (19,157 | ) | |||||||||||||||||
Less current deferred tax asset, net | 9,548 | 10,475 | |||||||||||||||||||
Net deferred tax liabilities - non-current portion | $ | (40,600 | ) | $ | (29,632 | ) | |||||||||||||||
Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Significant judgment is required in the evaluation of the deferred tax benefits and differences in future results from management’s estimates could result in material differences in the realization of these assets. | |||||||||||||||||||||
On September 11, 2013, the Company purchased 66.67% of the outstanding capital stock of Leaf. Because Leaf is less than 80% owned, it cannot be consolidated for tax purposes and must file a separate tax return. Since Leaf recorded cumulative net operating losses in recent years and projects losses in the near term, management has provided a 100% valuation allowance against its deferred tax asset resulting from its net operating losses carryforwards and will continue to carry the valuation allowance until such time as management believes that these deferred tax assets are more-likely- than-not to be realized. | |||||||||||||||||||||
A valuation allowance has not been recorded to reduce the tax benefit of the state net operating loss carry-forwards of $307,000, for December 31, 2010 or other net deferred tax assets as management believes that the Company will attain sufficient future taxable income within the carry-forward periods to fully recover these taxes. If not used, the state net operating loss carry-forwards will begin to expire in 2022. | |||||||||||||||||||||
On December 31, 2012, the Company acquired Ovation and its $23.2 million of net operating losses ("NOLs"). This acquisition was a “change of ownership” within the meaning of Section 382 of the Internal Revenue Code, and, as a result, such NOLs are subject to an annual limitation. Based upon the historical taxable income and projections for future taxable income over periods in which these NOLs will be deductible, we believe that it is more likely than not that the Company will be able to fully utilize these NOLs before the carry-forward periods begin to expire in fiscal 2023 and therefore a valuation allowance is not required. |
Stock_Incentive_Plans
Stock Incentive Plans | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||
Stock Incentive Plans | ' | |||||||||||||||||||
Stock Incentive Plans | ||||||||||||||||||||
As described below, the Company maintained two share-based plans for its employees under which it has granted stock options, Restricted Share Units and performance-based Restricted Share Units. Amounts the Company recognized in its consolidated financial statements for the years ended December 31, 2013, 2012, and 2011 with respect to these share-based plans were as follows: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Compensation expense recognized on share-based | $ | 12,838 | $ | 14,187 | $ | 9,548 | ||||||||||||||
plans before income tax benefit | ||||||||||||||||||||
Related income tax benefit recognized in the | 4,981 | 5,458 | 3,635 | |||||||||||||||||
income statement | ||||||||||||||||||||
Cash received from stock option exercises | 14,174 | 18,303 | 9,685 | |||||||||||||||||
Excess tax benefit recorded for tax deductions | 11,596 | 5,954 | 3,454 | |||||||||||||||||
resulting from the exercise of stock options | ||||||||||||||||||||
Tax benefit realized as reductions of estimated tax | 8,587 | 4,220 | 2,954 | |||||||||||||||||
payments during the period | ||||||||||||||||||||
The Company expenses employee share-based payments under the fair value method. Share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. | ||||||||||||||||||||
Stock Options. The Company estimates the grant date fair value of the stock options it issues using a Black-Scholes valuation model for “plain-vanilla” stock options and performance-based stock options, and uses a lattice valuation model to measure grant date fair value for stock options containing market vesting conditions. The Company's assumption for expected volatility is based on its historical volatility data related to market trading of its own common stock. The Company bases its assumptions for the expected life of new stock option grants on its analysis of the historical exercise patterns of its stock options. The dividend yield assumption is based on dividends expected to be paid over the expected life of the stock option. The risk-free interest rate assumption for stock options granted is determined by using U.S. treasury rates of the same period as the expected option term of each stock option. | ||||||||||||||||||||
The weighted-average fair value of options granted during the years ended December 31, 2012 and 2011 were $9.36 and $7.95, respectively. No stock options were granted during the year ended December 31, 2013. The fair value of options granted during the years ended December 31, 2012 and 2011 was estimated at the grant date using the following weighted average assumptions: | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||
Expected volatility | 55 | % | 55 | % | ||||||||||||||||
Expected life | 3.75 years | 3.65 years | ||||||||||||||||||
Expected dividends | 1 | % | 0.8 | % | ||||||||||||||||
Risk-free interest rate | 0.51 | % | 0.55 | % | ||||||||||||||||
Restricted Share Units. In the fourth quarters of 2011, 2012, and 2013, the Compensation Committee of the Company's Board of Directors approved grants of performance-based Restricted Share Units with grant-specific vesting and performance target terms as shown in the following table: | ||||||||||||||||||||
Performance Awards by Grant Date | ||||||||||||||||||||
4th Quarter 2011 | 4th Quarter 2012 | 4th Quarter 2013 | ||||||||||||||||||
RSU's Granted | 164,808 | 72,004 | 115,223 | |||||||||||||||||
Vesting during 2014 | 50% | — | — | |||||||||||||||||
Vesting during 2015 | 50% | 50% | — | |||||||||||||||||
Vesting during 2016 | — | 50% | — | |||||||||||||||||
Vesting during 2017 | — | — | 50% | |||||||||||||||||
Vesting during 2018 | — | — | 50% | |||||||||||||||||
Grant Performance Target | (a) | (b) | (c) | |||||||||||||||||
(a) | These Restricted Share Units will vest 50% in 2014 and 50% in 2015 since the Company achieved a pro forma diluted earnings per share compound annual growth rate ("CAGR") for the two-year period ending December 31, 2013 in excess of the performance target. The CAGR achieved for the two-year period ending December 31, 2013 resulted in holders earning the maximum 100% increase in the number of shares awarded. | |||||||||||||||||||
(b) | These Restricted Share Units will vest only if the Company achieves a pro forma diluted earnings per share CAGR of fifteen percent (15%) for the two-year period ending December 31, 2014. For each 1% that the CAGR actually achieved for the two year period ending on December 31, 2014 is above the 15% target, the number of shares underlying the Restricted Share Units awarded would be increased by 2.08%; provided, however, that the maximum increase in the number of shares that may be awarded is 125%. Likewise, for each 1% that the CAGR actually achieved for the two-year period ending on December 31, 2014 is below the 15% target, the number of shares underlying the Restricted Share Units awarded would be decreased by 1.31%. If the target CAGR is missed by 67% or more, then the number of shares awarded is zero. The Company has recorded expense on these Restricted Share Units based on achieving the 15% target. | |||||||||||||||||||
(c) | These Restricted Share Units will vest only if the Company achieves a pro forma diluted earnings per share growth rate of forty percent (40%) over the three-year period ending December 31, 2016. For each 1% that the growth rate actually achieved for the three-year period ending on December 31, 2016 is above the 40% target, the number of shares underlying the Restricted Share Units awarded would be increased by 1.20%; provided, however, that the maximum increase in the number of shares that may be awarded is 150%. Likewise, for each 1% that the growth rate actually achieved for the three-year period ending on December 31, 2016 is below the 40% target, the number of shares underlying the Restricted Share Units awarded would be decreased by 1.50%. If the target growth rate is missed by 50% or more, then the number of shares awarded is zero. The Company has recorded expense on these Restricted Share Units based on achieving the 40% target | |||||||||||||||||||
Pro forma diluted earnings per share for (a), (b) and (c) performance targets will be calculated excluding non-operating gains and losses, if any, and excluding the after-tax impact of share-based compensation expense. The closing price of the Company's common stock on the grant date equals the grant date fair value of these nonvested Restricted Share Units awards and will be recognized as compensation expense over their vesting periods. | ||||||||||||||||||||
In the fourth quarter of 2012, the Compensation Committee of the Company's Board of Directors approved target grants of 72,345 Relative Total Shareholder Return Restricted Share Units (referred to as “Relative TSRs”). These Relative TSRs are nonvested share awards for which vesting percentages and ultimate number of units vesting will be calculated based on the total shareholder return of the Company's common stock as compared to the total shareholder return of 86 peer companies. The payout schedule can produce vesting percentages ranging from 0% to 225%. Total shareholder return will be calculated based upon the average closing price for the 30 calendar day period ending December 9, 2015, divided by the closing price on December 10, 2012. The target number of units is based on achieving a total shareholder return equal to the 65th percentile of the peer group. The Company recorded expense on these Relative TSRs based on achieving the target. A lattice valuation model was applied to measure the grant date fair value of these Relative TSRs. | ||||||||||||||||||||
In the fourth quarter of 2013, the Compensation Committee approved target grants of 57,598 Relative TSRs. These Relative TSRs are nonvested share awards for which vesting percentages and ultimate number of units vesting will be calculated based on the total shareholder return of the Company's common stock as compared to the total shareholder return of 91 peer companies. The payout schedule can produce vesting percentages ranging from 0% to 200%. Total shareholder return will be calculated based upon the average closing price for the 30 calendar day period ending December 6, 2016, divided by the closing price on December 6, 2013. The target number of units is based on achieving a total shareholder return equal to the 65th percentile of the peer group. The Company recorded expense on these TSRs based on achieving the target. A lattice valuation model was applied to measure the grant date fair value of these Relative TSRs. | ||||||||||||||||||||
In the fourth quarter of 2013, the Compensation Committee approved target grants of 59,533Absolute Total Shareholder Return Restricted Share Units (referred to as “Absolute TSRs”). These Absolute TSRs are nonvested share awards for which vesting percentages and ultimate number of units vesting will be calculated based on the Company's three or four year total shareholder return of our common stock. The payout schedule can produce vesting percentages ranging from 0% to 200%. Total shareholder return will be calculated based upon the average closing price for the 30 calendar day period ending December 6, 2016 or December 6, 2017, divided by the closing price on December 6, 2013. The target number of units is based on achieving a total shareholder return of 33% over three years or 46% over four years. The Company recorded expense on these Absolute TSRs based on achieving the target. A lattice valuation model was applied to measure the grant date fair value of these Absolute TSRs. | ||||||||||||||||||||
Diluted earnings per share for the years ended December 31, 2013, 2012 and 2011 were computed based on the weighted average outstanding common shares plus equivalent shares assuming exercise of stock options and vesting of Restricted Share Units, where dilutive. | ||||||||||||||||||||
At December 31, 2013, there was a total of $28.2 million of unrecognized compensation expense related to unvested stock options and Restricted Share Units, which the Company expects to recognize over a weighted average period of 2.2 years. | ||||||||||||||||||||
Amended and Restated 2008 Equity Incentive Plan. In May 2010, the Company approved the Amended and Restated 2008 Equity Incentive Plan. The maximum number of share awards which may be granted under the Amended and Restated 2008 Equity Incentive Plan is 7,700,000, of which 1,297,064 stock options, 881,989 Restricted Share Units and 817,957 performance-based Restricted Share Units were granted during 2013, 2012, 2011 and 2010. The stock options and Restricted Share Units granted in 2013, 2012, 2011 and 2010 generally vest over four years, while the performance-based Restricted Share Units will vest only if, over the term of these Restricted Share Units, performance targets are achieved. At December 31, 2013, 6,121,399 shares of the 7,700,000 authorized shares of common stock reserved for issuance under the Amended and Restated 2008 Equity Incentive Plan remain available for future grant. | ||||||||||||||||||||
The stock options and Restricted Share Units were granted with terms of 5 years and an exercise price equal to the closing market price on the date of grant. The total intrinsic value of stock options exercised under the Amended and Restated 2008 Equity Incentive Plan during 2013 and 2012 was $27.9 million and $22.6 million, respectively. The total intrinsic value of Restricted Share Units vested under the Amended and Restated 2008 Equity Incentive Plan during 2013 and 2012 was $17.0 million and $5.2 million, respectively. | ||||||||||||||||||||
Amended and Restated 2000 Equity Incentive Plan. The Amended and Restated 2000 Equity Incentive Plan (the “2000 Equity Incentive Plan”) was replaced in May 2008 by the 2008 Equity Incentive Plan. No awards were granted under the 2000 Equity Incentive Plan in 2013, 2012, 2011 or 2010. At December 31, 2013, there were 49,571 options outstanding and vested under the 2000 Equity Incentive Plan. | ||||||||||||||||||||
The total intrinsic value of stock options exercised under the 2000 Equity Incentive Plan during 2013, 2012 and 2011 was $3.1 million, $4.0 million and $6.4 million, respectively. | ||||||||||||||||||||
Share-Based Plan Activity. During 2013 and 2012, employees exercised 1,264,825 and 1,522,429 stock options, respectively, to acquire the Company's common stock, generating $14.2 million and $18.3 million of stockholders' equity from the exercises and $11.6 million and $6.0 million of stockholders' equity related to tax deductions, which accrued to the Company as employees exercised non-qualified stock options, vested in Restricted Share Units, or made disqualifying dispositions of shares acquired through the exercise of incentive stock options. Stock option and restricted share activity in the Company's share-based plans during 2011, 2012 and 2013 was as follows: | ||||||||||||||||||||
Stock Options | Restricted Share Units | Combined | ||||||||||||||||||
Shares | Weighted-Average Exercise Price | Shares | Weighted-Average Grant Price | Shares | Weighted-Average Exercise/Grant Price | |||||||||||||||
Options outstanding | 7,454,166 | $ | 15.28 | 880,110 | $ | 14.23 | 8,334,276 | $ | 15.17 | |||||||||||
at January 1, 2011 | ||||||||||||||||||||
Issued | 31,568 | $ | 20.59 | 372,532 | $ | 22.02 | 404,100 | $ | 21.91 | |||||||||||
Exercised/vested | (1,133,974 | ) | $ | 8.54 | (112,480 | ) | $ | 10.59 | (1,246,454 | ) | $ | 8.72 | ||||||||
Forfeited/cancelled | (385,695 | ) | $ | 20.39 | (37,060 | ) | $ | 16.35 | (422,755 | ) | $ | 20.04 | ||||||||
Outstanding at | 5,966,065 | $ | 16.26 | 1,103,102 | $ | 17.11 | 7,069,167 | $ | 16.39 | |||||||||||
December 31, 2011 | ||||||||||||||||||||
Options exercisable | 2,264,769 | $ | 16.67 | — | $ | — | 2,264,769 | $ | 16.67 | |||||||||||
at December 31, 2011 | ||||||||||||||||||||
Issued | 27,496 | $ | 24.28 | 568,624 | $ | 29.88 | 596,120 | $ | 29.62 | |||||||||||
Exercised/vested | (1,522,429 | ) | $ | 12.03 | (175,000 | ) | $ | 14.57 | (1,697,429 | ) | $ | 12.29 | ||||||||
Forfeited/cancelled | (240,945 | ) | $ | 22.2 | (32,090 | ) | $ | 21.78 | (273,035 | ) | $ | 22.15 | ||||||||
Outstanding at | 4,230,187 | $ | 17.39 | 1,464,636 | $ | 22.31 | 5,694,823 | $ | 18.65 | |||||||||||
December 31, 2012 | ||||||||||||||||||||
Options exercisable | 808,962 | $ | 12.16 | — | $ | — | 808,962 | $ | 12.16 | |||||||||||
at December 31, 2012 | ||||||||||||||||||||
Issued | — | $ | — | 491,542 | $ | 42.5 | 491,542 | $ | 42.5 | |||||||||||
Exercised/vested | (1,264,825 | ) | $ | 11.21 | (502,225 | ) | $ | 18.72 | (1,767,050 | ) | $ | 13.34 | ||||||||
Forfeited/cancelled | (2,283,218 | ) | $ | 21.84 | (98,451 | ) | $ | 23.88 | (2,381,669 | ) | $ | 21.92 | ||||||||
Outstanding at | 682,144 | $ | 14.26 | 1,355,502 | $ | 30.83 | 2,037,646 | $ | 25.29 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Options exercisable | 394,252 | $ | 13.2 | — | $ | — | 394,252 | $ | 13.2 | |||||||||||
at December 31, 2013 | ||||||||||||||||||||
Stock options and Restricted Share Units which were outstanding at December 31, 2013 totaled 2,037,646 and had a weighted-average remaining contractual life of 2.1 years, a weighted average exercise/grant price of $25.29, and total intrinsic value of $100.2 million. Stock options which were exercisable at December 31, 2013 totaled 394,252 and had a weighted-average remaining contractual life of 1.2 years, a weighted average exercise price of $13.20, and total intrinsic value of $14.4 million. We have historically issued new shares to satisfy the exercise of options. Stock options and Restricted Share Units outstanding and exercisable at December 31, 2013 are summarized by exercise price below: | ||||||||||||||||||||
Outstanding | Exercisable | |||||||||||||||||||
Exercise price per share | Stock Options | Restricted Share Units | Total | Stock Options | Restricted Share Units | Total | ||||||||||||||
$6.25 to $12.16 | 164,371 | — | 164,371 | 164,371 | — | 164,371 | ||||||||||||||
$15.22 to $24.28 | 517,773 | 457,715 | 975,488 | 229,881 | — | 229,881 | ||||||||||||||
$29.57 to $44.62 | — | 897,787 | 897,787 | — | — | — | ||||||||||||||
682,144 | 1,355,502 | 2,037,646 | 394,252 | — | 394,252 | |||||||||||||||
The table below summarizes stock options and Restricted Share Units outstanding at December 31, 2013 by their weighted average remaining contractual term: | ||||||||||||||||||||
Stock Options | Restricted Share Units | |||||||||||||||||||
Exercise price per share | Outstanding | Average Remaining Contractual Term | Outstanding | Average Remaining Contractual Term | ||||||||||||||||
$6.25 to $12.16 | 164,371 | 0.6 years | — | — | ||||||||||||||||
$15.22 to $24.28 | 517,773 | 1.7 years | 457,715 | 1.2 years | ||||||||||||||||
$29.57 to $44.62 | — | — | 897,787 | 3.2 years | ||||||||||||||||
682,144 | 1.4 years | 1,355,502 | 2.4 years | |||||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Financial Instruments, Owned, at Fair Value [Abstract] | ' | |||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The Company applies a fair value framework in order to measure and disclose its financial assets and liabilities which include fixed income equity securities, interest swap derivatives and certain other financial instruments. The Company determines fair value based on quoted prices when available or through the use of alternative approaches when market quotes are not readily accessible or available. | ||||||||||||||||
The Company’s framework for measuring fair value provides a three-level hierarchy, which prioritizes the factors (inputs) used to calculate the fair value of assets and liabilities as follows: | ||||||||||||||||
• | Level 1 inputs are unadjusted quoted prices, such as a New York Stock Exchange closing price, in active markets for identical assets. Level 1 is the highest priority in the hierarchy. | |||||||||||||||
• | Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as other significant inputs that are observable at commonly quoted intervals, such as interest rates, foreign exchange rates, and yield curves. | |||||||||||||||
• | Level 3 inputs are unobservable and are based on the Company's assumptions due to little, if any, observable market information. Level 3 is the lowest priority in the hierarchy. | |||||||||||||||
For the years ended December 31, 2013 and 2012, there have been no transfers between Level 1 and Level 2 categories. The following tables provide the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2013 and 2012: | ||||||||||||||||
December 31, 2013 | Fair Value Measurement Category | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | (In thousands) | |||||||||||||||
Investments available for sale: | ||||||||||||||||
Conservative income bond fund (a) | $ | 12,010 | $ | 12,010 | $ | — | $ | — | ||||||||
Fixed income bond fund (a) | 1,222 | 1,222 | — | — | ||||||||||||
Total assets | $ | 13,232 | $ | 13,232 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | 411 | $ | — | $ | 411 | $ | — | ||||||||
Total liabilities | $ | 411 | $ | — | $ | 411 | $ | — | ||||||||
December 31, 2012 | Fair Value Measurement Category | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | (In thousands) | |||||||||||||||
Investments available for sale: | ||||||||||||||||
Fixed income bond fund (a) | $ | 1,212 | $ | 1,212 | $ | — | $ | — | ||||||||
Total assets | $ | 1,212 | $ | 1,212 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | 817 | $ | — | $ | 817 | $ | — | ||||||||
Total liabilities | $ | 817 | $ | — | $ | 817 | $ | — | ||||||||
(a) amounts included in Funds held for customers on the Consolidated Balance Sheet | ||||||||||||||||
The following tables provide the assets and liabilities carried at fair value measured on a non-recurring basis as of December 31, 2013 and 2012: | ||||||||||||||||
December 31, 2013 | Fair Value Measurement Category | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | (In thousands) | |||||||||||||||
Investments held to maturity: | ||||||||||||||||
Certificates of deposit | $ | 33 | $ | — | $ | 33 | $ | — | ||||||||
Total assets | $ | 33 | $ | — | $ | 33 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Revolving credit facility | $ | 150,000 | $ | — | $ | 150,000 | $ | — | ||||||||
Total liabilities | $ | 150,000 | $ | — | $ | 150,000 | $ | — | ||||||||
December 31, 2012 | Fair Value Measurement Category | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | (In thousands) | |||||||||||||||
Investments held to maturity: | ||||||||||||||||
Certificates of deposit | $ | 1,199 | $ | — | $ | 1,199 | $ | — | ||||||||
Total assets | $ | 1,199 | $ | — | $ | 1,199 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Term Credit Facility | $ | 70,000 | $ | — | $ | 70,000 | $ | — | ||||||||
Prior Revolving Credit Facility | 82,000 | — | 82,000 | — | ||||||||||||
Total liabilities | $ | 152,000 | $ | — | $ | 152,000 | $ | — | ||||||||
The Company's liabilities include interest rate swaps that are measured at fair value using observable market inputs | ||||||||||||||||
including the Company's credit risk and its counterparties' credit risks. Based on these inputs, the interest rate swaps are | ||||||||||||||||
classified within Level 2 of the valuation hierarchy. Based on the Company's continued ability to enter into these swaps, the | ||||||||||||||||
Company considers the markets for its fair value instruments to be active. The Company's liabilities as of December 31, 2012 also include borrowings under its credit facilities and the carrying value of these liabilities approximates fair value. | ||||||||||||||||
The Company's financial instruments also include cash and cash equivalents and cash held for customers and their | ||||||||||||||||
carrying values approximate fair value as of December 31, 2013 and 2012, because they bear interest at market | ||||||||||||||||
rates and have maturities of less than 90 days at the time of purchase. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plan [Abstract] | ' |
Employee Benefit Plan | ' |
Employee Benefit Plan | |
The Company offers a defined contribution plan (the "Plan") to all employees. Company contributions are generally based upon fixed amounts of eligible compensation. The Company contributed approximately $2.5 million, $1.9 million and $1.6 million to the Plan for the years ended December 31, 2013, 2012 and 2011, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||
Litigation—The Company is involved in ordinary course legal proceedings, which include all claims, lawsuits, investigations and proceedings, including unasserted claims, which are probable of being asserted, arising in the ordinary course of business and otherwise not described below. The Company has considered all such ordinary course legal proceedings in formulating its disclosures and assessments. In the opinion of the Company, based on consultations with outside counsel, material losses in addition to amounts previously accrued are not considered reasonably possible in connection with these ordinary course legal proceedings. | |||||||||||||||||||||
The Company has also been subject to lawsuits, claims, and investigations which resulted from the criminal breach of its payment systems environment (the "Processing System Intrusion"). See Contingencies below for a description of the Processing System Intrusion. | |||||||||||||||||||||
Contingencies—The Company collects and stores sensitive data about its merchant customers and bankcard holders. If the Company’s network security is breached or sensitive merchant or cardholder data is misappropriated, the Company could be exposed to assessments, fines or litigation costs. | |||||||||||||||||||||
On January 20, 2009, the Company publicly announced the Processing System Intrusion. The Processing System Intrusion involved malicious software that appears to have been used to collect in-transit, unencrypted payment card data while it was being processed by the Company during the transaction authorization process. The Company believes the breach did not extend beyond 2008. The Company does not consider it a reasonable possibility that losses exceeding the amounts previously recognized on the matters subject to Processing System Intrusion settlement agreements entered into to date will be incurred. With regard to unsettled claims related to the Processing System Intrusion, the Company determined material losses in addition to those previously accrued are not considered reasonably possible on any such claim disclosed. The Company is prepared to vigorously defend itself against any unsettled claims relating to the Processing System Intrusion that have been asserted against it and feels it has strong defenses to all claims that have been asserted against it relating to the Processing System Intrusion. | |||||||||||||||||||||
Leases—The Company leases various office spaces and certain equipment under operating leases with remaining terms ranging up to 10 years. The majority of the office space lease agreements contain renewal options and generally require the Company to pay certain operating expenses. | |||||||||||||||||||||
Future minimum lease payments for all non-cancelable leases as of December 31, 2013 were as follows: | |||||||||||||||||||||
For the Years Ended December 31, | Operating | ||||||||||||||||||||
Leases (a) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
2014 | $ | 10,410 | |||||||||||||||||||
2015 | 7,747 | ||||||||||||||||||||
2016 | 5,479 | ||||||||||||||||||||
2017 | 3,627 | ||||||||||||||||||||
2018 | 3,624 | ||||||||||||||||||||
Thereafter | 8,020 | ||||||||||||||||||||
Total future minimum lease payments | $ | 38,907 | |||||||||||||||||||
(a) There were no material capital leases at December 31, 2013. | |||||||||||||||||||||
Rent expense for leased facilities and equipment was $10.2 million, $8.0 million and $8.7 million, respectively, for the years ended December 31, 2013, 2012, and 2011. | |||||||||||||||||||||
Commitments—Certain officers of the Company have entered into employee confidential information and non-competition agreements under which they are entitled to severance pay equal to their base salary and medical benefits for six months, one year or two years depending on the officer and a pro-rated bonus in the event they are terminated by the Company other than for cause. There were no payouts under these agreements in the year ended December 31, 2013. | |||||||||||||||||||||
The following table reflects the Company’s other significant contractual obligations, including leases from above, as of December 31, 2013: | |||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||
Contractual Obligations | Total | Less than | 1 to 3 | 3 to 5 | More | ||||||||||||||||
1 year | Years | years | than 5 | ||||||||||||||||||
years | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Processing providers (a) | $ | 12,922 | $ | 6,844 | $ | 6,078 | $ | — | $ | — | |||||||||||
Telecommunications providers (b) | 6,939 | 3,359 | 2,743 | 837 | — | ||||||||||||||||
Facility and equipment leases | 38,907 | 10,410 | 13,226 | 7,251 | 8,020 | ||||||||||||||||
Revolving Credit Facility (c) | 150,000 | — | — | 150,000 | — | ||||||||||||||||
$ | 208,768 | $ | 20,613 | $ | 22,047 | $ | 158,088 | $ | 8,020 | ||||||||||||
(a) | The Company has agreements with several third-party processors to provide to us on a non-exclusive basis payment processing and transmittal, transaction authorization and data capture services, and access to various reporting tools. The Company's agreements with third-party processors require it to submit a minimum monthly number of transactions or volume for processing. If the Company submits a number of transactions or volume that is lower than the minimum, it is required to pay the third-party processors the fees that they would have received if the Company had submitted the required minimum number or volume of transactions. | ||||||||||||||||||||
(b) | The Company has agreements in place with several large telecommunications companies that provide data center services, wide area network connectivity, and voice services that are used by both the Company call center and card payment processing platforms. These providers require both dollar and term commitments for the services they provide. If the Company does not meet the minimum terms, then there is a requirement to pay the remaining commitments. | ||||||||||||||||||||
(c) | Interest rates on the Revolving Credit Facility are variable in nature; however, the Company is party to fixed-pay amortizing interest rate swaps having a remaining notional amount at December 31, 2013 of $25.0 million. If interest rates were to remain at the December 31, 2013 level, the Company would make interest payments of $1.4 million in the next year and $0.5 million in the next 1 to 3 years or a total of $2.0 million including net settlements on the fixed-pay amortizing interest rate swaps. The Revolving Credit Facility is available on a revolving basis until October 23, 2018. |
Segments
Segments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segments | ' | ||||||||||||
Segments | |||||||||||||
The Company bases its business segments on how it monitors and manages the performance of its operations as determined by the Company's chief operating decision maker or decision making group. The Company's operating segments are strategic business units that offer different products and services. They are managed separately because each business requires different marketing strategies, personnel skill sets and technology. | |||||||||||||
The Company has the following five reportable segments: (1) Card Payment Processing, which provides card payment processing and related services to our SME merchants and Network Services Merchants (2) Heartland Ovation Payroll, which provides payroll processing and related tax filing services, (3) Heartland School Solutions, which provides school nutrition and point-of-sale solutions and associated payment solutions, (4) Campus Solutions, which provides payment processing, higher education loan services and open- and closed-loop payment solutions, and (5) Other. The Other segment consists of Prepaid Card, which provides prepaid card, stored-value card and loyalty and gift card marketing solutions and other miscellaneous income. The components of the Other segment do not meet the defined thresholds for being an individually reportable segment. | |||||||||||||
SME merchants and Network Services merchants are aggregated for financial reporting purposes in the Card Segment, as they both provide processing services related to bankcard transactions, exhibit similar economic characteristics, and share the same systems to provide services. | |||||||||||||
The Company allocates revenues, expenses, assets and liabilities to segments only where directly attributable. The unallocated corporate administration amounts consist primarily of costs attributed to finance, corporate administration, human resources and corporate services. Reconciling items include eliminations of intercompany investments and receivables. | |||||||||||||
The accounting policies of the operating segments are the same as described in the summary of significant accounting policies. The Company believes the terms and conditions of transactions between the segments are comparable to those which could have been obtained in transactions with unaffiliated parties. | |||||||||||||
At December 31, 2013 and 2012, 62% and 67%, respectively, of Heartland Ovation Payroll's total assets were funds that the Company holds as a fiduciary in its payroll processing services activities for payment to taxing authorities. At December 31, 2013 and 2012, 32% and 26%, respectively, of the Campus Solutions segment's total assets represent funds held for our loan servicing customers related to payment processing services provided for federal student loan billing and processing that are payable to higher education institutions and other businesses. See Note 8, Intangible Assets and Goodwill for goodwill as a percentage of the reportable segments' total assets. | |||||||||||||
A summary of the Company’s segments for the three years ended December 31, 2013, 2012, and 2011 was as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | (In thousands) | ||||||||||||
Card Payment Processing | $ | 1,981,011 | $ | 1,923,145 | $ | 1,925,667 | |||||||
Heartland School Solutions | 50,541 | 36,614 | 11,178 | ||||||||||
Heartland Ovation Payroll | 44,565 | 21,368 | 19,505 | ||||||||||
Campus Solutions | 36,186 | 8,065 | 6,488 | ||||||||||
Other | 23,069 | 24,244 | 22,739 | ||||||||||
Total revenues | $ | 2,135,372 | $ | 2,013,436 | $ | 1,985,577 | |||||||
Depreciation and amortization | |||||||||||||
Card Payment Processing | $ | 26,934 | $ | 24,057 | $ | 23,313 | |||||||
Heartland School Solutions | 2,282 | 482 | 1,412 | ||||||||||
Heartland Ovation Payroll | 3,478 | 1,153 | 694 | ||||||||||
Campus Solutions | 2,330 | 418 | 263 | ||||||||||
Other | 1,641 | 1,481 | 1,288 | ||||||||||
Unallocated Corporate Administration Amounts | (1,311 | ) | 241 | 471 | |||||||||
Total depreciation and amortization | $ | 35,354 | $ | 27,832 | $ | 27,441 | |||||||
Interest Income | |||||||||||||
Card Payment Processing | $ | 121 | $ | 201 | $ | 142 | |||||||
Campus Solutions | 3 | — | — | ||||||||||
Total interest income | $ | 124 | $ | 201 | $ | 142 | |||||||
Interest Expense | |||||||||||||
Card Payment Processing | $ | 5,425 | $ | 3,729 | $ | 4,329 | |||||||
Campus Solutions | 7 | 7 | 2 | ||||||||||
Other | — | — | 3 | ||||||||||
Reconciling | (3 | ) | (290 | ) | (212 | ) | |||||||
Total interest expense | $ | 5,429 | $ | 3,446 | $ | 4,122 | |||||||
Net income from continuing operations | |||||||||||||
Card Payment Processing | $ | 80,985 | $ | 75,691 | $ | 68,613 | |||||||
Heartland School Solutions | 9,085 | 5,371 | 2,255 | ||||||||||
Heartland Ovation Payroll | 2,056 | 1,682 | 393 | ||||||||||
Campus Solutions | 2,255 | (104 | ) | (404 | ) | ||||||||
Other | 462 | 975 | 1,589 | ||||||||||
Unallocated corporate administration amounts | (20,741 | ) | (19,262 | ) | (29,458 | ) | |||||||
Total net income from continuing operations | $ | 74,102 | $ | 64,353 | $ | 42,988 | |||||||
Assets | |||||||||||||
Card Payment Processing | $ | 566,943 | $ | 466,196 | $ | 451,757 | |||||||
Heartland School Solutions | 78,573 | 71,182 | 52,520 | ||||||||||
Heartland Ovation Payroll | 155,823 | 166,317 | 53,750 | ||||||||||
Campus Solutions | 81,719 | 77,168 | 6,826 | ||||||||||
Other | 17,247 | 32,551 | 32,068 | ||||||||||
Total assets | $ | 900,305 | $ | 813,414 | $ | 596,921 | |||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
Earnings Per Share | |||||||||||||
The Company presents earnings per share data following the established standards for the computation and presentation of basic and diluted earnings per share data. Under these standards, the dilutive effect of stock options is excluded from the calculation of basic earnings per share but included in diluted earnings per share. The following is a reconciliation of the amounts used to calculate basic and diluted earnings per share: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share) | |||||||||||||
Numerator: | |||||||||||||
Income from continuing operations attributable to Heartland | $ | 74,712 | $ | 64,353 | $ | 42,988 | |||||||
Income from discontinued operations attributable to Heartland | 3,914 | 1,536 | 951 | ||||||||||
Net income attributable to Heartland | $ | 78,626 | $ | 65,889 | $ | 43,939 | |||||||
Denominator: | |||||||||||||
Basic weighted average shares outstanding | 36,791 | 38,468 | 38,931 | ||||||||||
Effect of dilutive instruments: | |||||||||||||
Stock options and restricted stock units | 1,262 | 1,590 | 1,302 | ||||||||||
Diluted weighted average shares outstanding | 38,053 | 40,058 | 40,233 | ||||||||||
Basic earnings per share: | |||||||||||||
Income from continuing operations | $ | 2.03 | $ | 1.67 | $ | 1.1 | |||||||
Income from discontinued operations | $ | 0.11 | $ | 0.04 | $ | 0.03 | |||||||
Basic earnings per share | $ | 2.14 | $ | 1.71 | $ | 1.13 | |||||||
Diluted earnings per share: | |||||||||||||
Income from continuing operations | $ | 1.96 | $ | 1.6 | $ | 1.07 | |||||||
Income from discontinued operations | $ | 0.1 | $ | 0.04 | $ | 0.02 | |||||||
Diluted earnings per share | $ | 2.06 | $ | 1.64 | $ | 1.09 | |||||||
Discontinued_Operation
Discontinued Operation | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Discontinued Operation | ' | ||||||||||||
Discontinued Operations | |||||||||||||
In the fourth quarter of 2012, the Company along with the 30% noncontrolling shareholders of CPOS entered into an agreement to sell CPOS to a third party. CPOS was not a significant subsidiary and the Company has no continuing | |||||||||||||
involvement in its operations. After receiving regulatory approval, the transaction settled on January 31, 2013. The total sales price was $30.3 million cash including net working capital, of which the Company received $20.9 million for its 70% ownership in CPOS. The total gain recorded on the sale was $3.8 million, net of income taxes of $2.1 million. | |||||||||||||
Assets held for sale and liabilities related to assets held for sale included the following at December 31, 2013 and 2012: | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Cash and cash equivalents | $ | — | $ | 2,141 | |||||||||
Receivables, net | — | 904 | |||||||||||
Investments held to maturity | — | 3,229 | |||||||||||
Inventory | — | 406 | |||||||||||
Property and equipment, net | — | 620 | |||||||||||
Goodwill | — | 9,337 | |||||||||||
Intangible assets, net | — | 260 | |||||||||||
Other assets | — | 147 | |||||||||||
Total assets held for sale | $ | — | $ | 17,044 | |||||||||
Accounts payable | $ | — | $ | 497 | |||||||||
Processing liabilities | — | 86 | |||||||||||
Accrued expenses and other liabilities | — | 1,089 | |||||||||||
Total liabilities related to assets held for sale | $ | — | $ | 1,672 | |||||||||
Income from discontinued operations for the years ended December 31, 2013, 2012 and 2011 were as follows (in thousands of dollars): | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | $ | 1,117 | $ | 13,123 | $ | 11,373 | |||||||
Expenses | 870 | 10,186 | 9,471 | ||||||||||
Income from operations | 247 | 2,937 | 1,902 | ||||||||||
Income from discontinued operations, net of income tax | 184 | 2,185 | 1,359 | ||||||||||
of $68, $803, and $575 | |||||||||||||
Gain on sale of discontinued operations, net of income tax of $2,067 | 3,786 | — | — | ||||||||||
Net income from discontinued operations attributable to | 56 | 649 | 408 | ||||||||||
non-controlling interests | |||||||||||||
Net income from discontinued operations attributable to Heartland | 3,914 | 1,536 | 951 | ||||||||||
Quarterly_Consolidated_Results
Quarterly Consolidated Results of Income (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Consolidated Results of Income (Unaudited) | ' | ||||||||||||||||
Quarterly Consolidated Results of Income (Unaudited) | |||||||||||||||||
The Company's unaudited quarterly results of operations for the years ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||
For the Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Total revenues | $ | 501,239 | $ | 546,624 | $ | 557,129 | $ | 530,380 | |||||||||
Costs of services | 428,624 | 469,763 | 480,386 | 456,933 | |||||||||||||
General and administrative expenses | 45,840 | 43,531 | 41,871 | 42,326 | |||||||||||||
Total expenses | 474,464 | 513,294 | 522,257 | 499,259 | |||||||||||||
Income from operations | 26,775 | 33,330 | 34,872 | 31,121 | |||||||||||||
Net income attributable to Heartland | 19,559 | 19,681 | 21,981 | 17,405 | |||||||||||||
Diluted earnings per share: | |||||||||||||||||
Income from continuing operations | $ | 0.41 | $ | 0.53 | $ | 0.58 | $ | 0.46 | |||||||||
Income from discontinued operations | 0.1 | — | — | — | |||||||||||||
Diluted earnings per share | 0.51 | 0.53 | 0.58 | 0.46 | |||||||||||||
For the Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Total revenues | $ | 467,576 | $ | 515,218 | $ | 530,677 | $ | 499,965 | |||||||||
Costs of services | 413,232 | 454,920 | 461,084 | 434,465 | |||||||||||||
General and administrative expenses | 31,549 | 31,309 | 36,787 | 40,289 | |||||||||||||
Total expenses | 444,781 | 486,229 | 497,871 | 474,754 | |||||||||||||
Income from operations | 22,795 | 28,989 | 32,806 | 25,211 | |||||||||||||
Net income attributable to Heartland | 13,754 | 17,801 | 19,380 | 14,954 | |||||||||||||
Diluted earnings per share: | |||||||||||||||||
Income from continuing operations | $ | 0.33 | $ | 0.43 | $ | 0.47 | $ | 0.37 | |||||||||
Income from discontinued operations | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||||
Diluted earnings per share | 0.34 | 0.44 | 0.48 | 0.38 | |||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates include, among other things, the accrued buyout liability, capitalized customer acquisition costs, goodwill, loss reserves, certain accounts payable and accrued expenses and certain tax assets and liabilities as well as the related valuation allowances, if any. Actual results could differ from those estimates. | |
Receivables | ' |
Receivables—The Company's primary receivables are from its bankcard processing merchants. In addition to receivables for transaction fees the Company charges its merchants for processing transactions, these receivables include amounts resulting from the Company's practice of advancing interchange fees to most of its SME merchants during the month and collecting those fees at the beginning of the following month. The Company does not advance interchange fees to its Network Services merchants. Network Services merchants are invoiced monthly, on payment terms of 30 days net from date of invoicing. Receivables from merchants also include receivables from the sale of point-of-sale terminal equipment. | |
Historically, the Company funded interchange advances to its SME merchants first with its available cash, and when that cash had been expended, by directing its sponsor banks to fund advances thereby incurring a payable to sponsor banks. In the fourth quarter of 2012, the Company accelerated the end-of-day presentment of transaction funding files to the bankcard networks resulting in its sponsor banks receiving settlement cash one day earlier and increasing funding obligations to its SME merchants, which are carried in processing liabilities. As a result of accelerated presentment, the Company funds these merchant interchange advances/receivables first from the accelerated settlement cash received from bankcard networks, then from the Company's available cash or by incurring a payable to its sponsor banks. At December 31, 2013, the Company did not use any of its available cash to fund merchant advances. At December 31, 2012, the Company used $3.8 million of its available cash to fund merchant advances. The amount due to sponsor banks for funding advances was $17.8 million at December 31, 2013 and $36.3 million at December 31, 2012. The Company pays its sponsor banks the prime rate on these payables. The payable to sponsor banks is repaid at the beginning of the following month out of the fees the Company collects from its merchants. | |
Receivables also include amounts resulting from the pre-funding of Discover and American Express transactions to the Company's merchants as well as amounts due from PIN debit transactions. These amounts are recovered the next business day following the date of processing the transaction. | |
Receivables also include amounts resulting from the sale, installation, training and repair of payment system hardware and software for Campus Solutions, Heartland School Solutions and Prepaid Card systems. These receivables are mostly invoiced on terms of 30 days net from date of invoicing. | |
Investments and Funds Held for Payroll Customers | ' |
Investments and Funds Held for Customers—Investments, including those carried on the Consolidated Balance Sheets as Funds held for customers, consist primarily of equity investments, fixed income bond funds and certificates of deposit. Funds held for customers also include overnight bank deposits. The majority of investments carried in Funds held for customers are available-for-sale and recorded at fair value based on quoted market prices. Certificates of deposit are classified as held to maturity and recorded at cost. In the event of a sale, cost is determined on a specific identification basis. | |
Inventories | ' |
Inventories—Inventories consist of point-of-sale terminal equipment held for sale to merchants, prepaid card and cashless payment systems hardware for sale to end users, resellers and distributors, and campus payments solutions equipment for sale to end users. Inventories are valued at the lower of cost or market price. Cost is arrived at using the first-in, first-out method. Market price is estimated based on current sales of equipment. | |
Inventories also include purchased data encryption software licenses held for sale to merchants who acquire the Company's End-to-End Encryption Solution (“E3”) for processing bankcard transactions, or purchase the upgraded terminal and point-of-sale devices incorporating E3. | |
Capitalized Customer Acquisition Costs, net | ' |
Capitalized Customer Acquisition Costs, net—Capitalized customer acquisition costs consist of (1) up-front signing bonus payments made to Relationship Managers and sales managers (the Company's sales force, which are referred to as "salespersons") for the establishment of new merchant relationships, and (2) a deferred acquisition cost representing the estimated cost of buying out the residual commissions of vested salespersons. Capitalized customer acquisition costs represent incremental, direct customer acquisition costs that are recoverable through gross margins associated with merchant contracts. The capitalized customer acquisition costs are amortized using a method which approximates a proportional revenue approach over the initial three-year term of the merchant contract. | |
The up-front signing bonus paid for new SME bankcard, payroll and loyalty marketing accounts is based on the estimated gross margin for the first year of the merchant contract. The signing bonus, amount capitalized, and related amortization are adjusted after the first year to reflect the actual gross margin generated by the merchant contract during that year. The deferred customer acquisition cost asset is accrued over the first year of SME bankcard, payroll and loyalty marketing merchant processing, consistent with the build-up in the accrued buyout liability, as described below. | |
Management evaluates the capitalized customer acquisition costs for impairment on an annual basis by comparing, on a pooled basis by vintage month of origination, the expected future net cash flows from underlying merchant relationships to the carrying amount of the capitalized customer acquisition costs. If the estimated future net cash flows are lower than the recorded carrying amount, indicating an impairment of the value of the capitalized customer acquisition costs, the impairment loss will be charged to operations. | |
Property and Equipment | ' |
Property and Equipment—Property and equipment are carried at cost, net of accumulated depreciation. Depreciation for the Company's owned service center building in Jeffersonville, Indiana is computed straight-line over 39 years with depreciation on certain building improvements computed over 15 years. Depreciation is computed straight-line over periods ranging from 3 to 10 years for furniture and equipment. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. | |
Equipment held under capitalized lease arrangements is included in property and equipment, and the associated liabilities are included in current and long-term borrowings as appropriate. Amortization of equipment under capitalized leases is included in depreciation and amortization expense. | |
Fully depreciated property and equipment are retained in property and equipment and accumulated depreciation accounts until their disposal or removal from service. When fully depreciated property and equipment is taken out of service, the original cost basis and matching accumulated depreciation amounts are written off. | |
Rent expense on operating leases is recorded on a straight-line basis over the term of the lease agreement. Tenant improvement allowances are deferred and amortized on a straight-line basis over the life of the lease agreement as a reduction to rent expense. | |
The Company capitalizes software development costs and amortizes such costs on a straight-line basis over an estimated useful life of 3 to 7 years. Preliminary project costs incurred prior to establishing technological feasibility are charged to operations as such costs are incurred. Once technological feasibility is established, costs are capitalized until the software is placed in service. | |
Long-Lived Assets | ' |
Long-Lived Assets—The Company evaluates the potential for impairment when changes in circumstances indicate that undiscounted cash flows estimated to be generated by the related assets are less than the carrying amount. Management believed that no such changes in circumstances or impairment have occurred as of December 31, 2013 or 2012. | |
Goodwill | ' |
Goodwill— Goodwill represents the excess of acquisition costs over the fair values of net assets acquired in business combinations. The Company has recorded goodwill in connection with it acquisitions, including the 2011, 2012 and 2013 acquisitions of Comalex, mySchoolBucks, School-Link, Lunch Byte, Educational Computer Systems, Ovation Payroll and Leaf. Goodwill is tested for impairment at least annually and between annual tests if an event occurs or changes in circumstances suggest a potential decline in the fair value of the reporting unit. A significant amount of judgment is involved in determining if an indicator or change in circumstances relating to impairment has occurred. Such changes may include, among others: a significant decline in expected future cash flows; a sustained decline in market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; and slower growth rates. The Company performs its annual goodwill impairment testing in the fourth quarter. The Company's evaluation indicated that no impairment exists and the fair value of each reporting unit subject to the impairment evaluation exceeded the carrying value as of December 31, 2013 and 2012. At December 31, 2013 and 2012, goodwill of $191.0 million and $168.1 million, respectively, was recorded on the Company's Consolidated Balance Sheets. | |
Processing Liabilities And Loss Reserves | ' |
Processing Liabilities—Processing liabilities result primarily from the Company's card processing activities. | |
Processing liabilities primarily reflect funds in transit associated with differences arising between the amounts our sponsor banks receive from the bankcard networks and the amounts funded to the Company's merchants. Such differences arise from timing differences, interchange expense, merchant advances, merchant reserves and chargeback processing. These differences result in payables or receivables. If the settlement received from the bankcard networks precedes the funding obligation to the merchant, the Company records a processing liability. Conversely, if funding to the merchant precedes the settlement from the bankcard networks, the Company records a receivable from the bankcard network. In addition, certain bankcard networks restrict the Company from accessing merchant settlement funds and require that these funds be controlled by the Company's sponsor banks. The amounts are generally collected or paid the following business day. | |
Chargebacks periodically arise due to disputes between a cardholder and a merchant resulting from the cardholder's dissatisfaction with merchandise quality or the merchant's service, and the disputes may not always be resolved in the merchant's favor. In some of these cases, the transaction is ''charged back'' to the merchant and the purchase price is refunded to the cardholder by the credit card-issuing institution. If the merchant is unable to fund the refund, the Company is liable for the full amount of the transaction. The Company's obligation to stand ready to perform is minimal. The Company maintains a deposit or the pledge of a letter of credit from certain merchants as an offset to potential contingent liabilities that are the responsibility of such merchants. The Company evaluates its ultimate risk and records an estimate of potential loss for chargebacks based upon an assessment of actual historical loss rates compared to recent bankcard processing volume levels. The Company believes that the liability recorded as loss reserves approximates fair value. | |
Accrued Buyout Liability | ' |
Accrued Buyout Liability—The Company's Relationship Managers and sales managers are paid residual commissions based on the gross margin generated by monthly SME merchant processing activity. The Company has the right, but not the obligation, to buy out some or all of these commissions, and intends to do so periodically. Such purchases of the commissions are at a fixed multiple of the last twelve months' commissions. Because of the Company's intent and ability to execute purchases of the residual commissions, and the mutual understanding between the Company and the Relationship Managers and sales managers, the Company has accounted for this deferred compensation arrangement pursuant to the substantive nature of the plan. The Company therefore records the amount that it would have to pay (the ''settlement cost'') to buy out non-servicing related commissions in their entirety from vested Relationship Managers and sales managers, and an accrual, based on their progress towards vesting, for those unvested Relationship Managers and sales managers who are expected to vest in the future. As noted above, as the liability increases over the first year of a SME merchant contract, the Company also records a related deferred acquisition cost asset for currently vested Relationship Managers and sales managers. The accrued buyout liability associated with unvested Relationship Managers and sales managers is not included in the deferred acquisition cost asset since future services are required in order to vest. Subsequent changes in the estimated accrued buyout liability due to merchant attrition, same-store sales growth and changes in gross margin are included in the same income statement caption as customer acquisition costs expense. | |
Beginning in June 2012, Relationship Managers and sales managers earn portfolio equity on their newly installed payroll and loyalty marketing merchant accounts based on the residual commissions they earn on those accounts. The accrued buyout liability and deferred acquisition cost asset are accrued in the same manner as the SME bankcard merchant portfolio equity. | |
The accrued buyout liability is based on merchants under contract at the balance sheet date, the gross margin generated by those merchants over the prior twelve months, and the contractual buyout multiple. The liability related to a new merchant is therefore zero when the merchant is installed, and increases over the twelve months following the installation date. The same procedure is applied to unvested commissions over the expected vesting period, but is further adjusted to reflect the Company's estimate that 31% of unvested Relationship Managers and sales managers become vested, which represents the Company's historical vesting rate. | |
The classification of the accrued buyout liability between current and non-current liabilities on the Consolidated Balance Sheets is based upon the Company's estimate of the amount of the accrued buyout liability that it reasonably expects to pay over the next twelve months. This estimate is developed by calculating the cumulative annual average percentage that total historical buyout payments represent of the accrued buyout liability. That percentage is applied to the period-end accrued buyout liability to determine the current portion. | |
Revenue | ' |
Revenue—The Company classifies its revenues into five categories: Card Payment Processing, Heartland School Solutions, Heartland Ovation Payroll, Campus Solutions and Prepaid Card/Other. The Company recognizes revenue when (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the price is fixed or determinable; and (4) collectability is reasonably assured. | |
Card Payment Processing revenue primarily consists of discount, per-transaction and periodic (primarily monthly) fees from the processing of Visa, MasterCard, American Express and Discover transactions for SME merchants and per-transaction fees for the authorization and settlement of transactions for Network Services merchants. Also included in this category are American Express and Discover servicing fees, merchant service fees, fees for processing chargebacks, termination fees on terminated contracts and fees from selling, renting and deploying point-of-sale devices. Interchange fees, which are the Company’s most significant expense, are set by the card networks and paid to the card issuing banks. For the majority of SME card processing revenue, the Company does not offset processing revenues and interchange fees because its business practice is to advance the interchange fees to most SME merchants when settling their daily transactions (thus paying the full amount of the transaction to the merchant), and then to collect the full discount fees from merchants on the first business day of the next month. The Company has merchant portability, credit risk, and the ultimate responsibility to the merchant and, as such, revenue is reported at the time of settlement on a gross basis. Payment processing services are transaction based and priced either as a fixed fee per transaction or calculated as a percentage of the transaction value. The fees are charged for the processing services provided and do not include the gross sales price paid by the ultimate buyer to the merchant. For SME merchants to whom the Company does not advance interchange, it records card processing revenues net of interchange fees. As Network Services does not advance interchange fees to its merchants, the Company records its card processing revenues net of interchange fees. | |
The Company evaluates its contractual arrangements for indications that multiple element arrangements may exist. For contracts with multiple deliverables, the Company records revenue based on vendor specific objective evidence of selling price where applicable, or based on the best estimate of the selling price. | |
Heartland School Solutions revenues include fees from sales and maintenance of cafeteria point-of-sale solutions and associated payment solutions, including online prepayment solutions, back office management and hardware and technical support. Revenues are recorded at the time of shipment, over the maintenance period, or at the provision of services. | |
Heartland Ovation Payroll revenue includes fees charged for payroll processing services, including check printing, direct deposit, related federal, state and local tax deposits and providing accounting documentation and interest income earned on funds held for customers. Revenues are recorded at the time service is provided. | |
Campus Solutions revenue includes fees associated with providing solutions to support administrative services for higher education, including student loan payment processing, delinquency and default services, refund management, tuition payment plans, electronic billing and payment, tax document services, and business outsourcing. Campus Solutions revenue also includes fees from the sale and maintenance of open- and closed-loop payment hardware and software solutions for college or university campuses to process small value electronic transactions. Revenues are recorded at the time of shipment, over the maintenance period, or at the provision of services. | |
Prepaid Card and Other revenues include Micropayments fees from selling hardware and software for unattended online wireless credit card based payment systems, and unattended value top up systems for off-line closed-loop smart (chip) card based payment systems. Also included in this category are Heartland Marketing Solutions fees from selling mobile and card-based marketing services, gift cards and rewards services. Revenues are recorded at the time of shipment, over the maintenance period, or at the provision of services. | |
Loss Contingencies and Legal Expenses | ' |
Loss Contingencies and Legal Expenses—The Company records a liability for loss contingencies when the liability is probable and the amount is reasonably estimable. Legal fees associated with loss contingencies are recorded when the legal fees are incurred. The Company records recoveries from its insurance providers when cash is received from the provider. | |
Other Income (Expense) | ' |
Other Income (Expense)—Other income (expense) consists of interest income on cash and investments, the interest expense on our borrowings, the gains or losses on the disposal of property and equipment and other non-operating income or expense items. | |
Income Taxes | ' |
Income Taxes—The Company accounts for income taxes by recognizing deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statements and the tax basis of assets and liabilities using enacted tax rates. The impact on deferred assets and liabilities of a change in tax rates is recognized in the period that the rate change is enacted. Valuation allowances are recorded when it is determined that it is more likely than not that a deferred tax asset will not be realized. | |
In the fourth quarter of 2012, the Company entered into an agreement to sell CPOS. Because the Company would no longer be indefinitely reinvesting undistributed earnings of CPOS, the Company recognized income tax expense net of foreign tax credits, of $0.4 million in 2012 on the Company's 70% portion of the CPOS cumulative undistributed earnings at December 31, 2012. See Note 13, Income Taxes and Note 20, Discontinued Operation, for more detail. | |
Stock-Based Compensation | ' |
Share–Based Compensation—The Company expenses employee share-based payments under the fair value method. Share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. | |
Excess tax benefits are generated when employees exercise non-qualified stock options, make disqualifying dispositions of shares acquired through their exercise of incentive stock options and vest in restricted share units. | |
These excess tax benefits are reported as a financing cash inflow rather than a reduction of taxes paid, which is included within operating cash flows. Accordingly, cash provided by operating activities decreased and cash provided by financing activities increased by $11.6 million in 2013, $6.0 million in 2012 and $3.5 million in 2011 related to excess tax benefits from stock-based awards. | |
Earnings per Share—Basic earnings per share was computed by dividing net income by weighted average number of common shares outstanding during the period. Diluted earnings per share was computed based on the weighted average outstanding common shares plus equivalent shares assuming exercise of stock options and vesting of Restricted Share Units, where dilutive. | |
Derivative Financial Instruments | ' |
Derivative Financial Instruments—The Company utilizes derivative instruments to manage interest rate risk on certain borrowings under its Credit Agreement (as defined in Note 10 herein). The Company recognizes the fair value of derivative financial instruments in the Consolidated Balance Sheets in investments, or accrued expenses and other liabilities. Changes in fair value of derivative instruments are recognized immediately in earnings unless the derivative is designated and qualifies as a hedge of future cash flows. For derivatives that qualify as hedges of future cash flows, the effective portion of changes in fair value is recorded in other comprehensive income and reclassified into interest expense in the same periods during which the hedged item affects earnings. Any ineffectiveness of cash flow hedges would be recognized in other income (expense) in the Consolidated Statements of Income during the period of change. | |
Foreign Currency | ' |
Foreign Currency—The Canadian dollar was the functional currency of CPOS, which operated in Canada. CPOS' revenues and expenses were translated at the average exchange rates prevailing during the period. The foreign currency assets and liabilities of CPOS were translated at the period-end rate of exchange. The resulting translation adjustment was allocated between the Company and CPOS' noncontrolling interests and is recorded as a component of other comprehensive income. At December 31, 2012, the cumulative foreign currency translation reflected a loss of $45,000. | |
Noncontrolling Interests | ' |
Noncontrolling Interests— Noncontrolling interests represent noncontrolling stockholders' share of the equity and after-tax net income or loss of Leaf as of December 31, 2013 and CPOS as of December 31, 2012. | |
Noncontrolling stockholders' share of after-tax net income or loss of Leaf is included in Net income (loss) attributable to noncontrolling interests as of December 31, 2013, continuing operations in the Consolidated Statements of Income for the year ended December 31, 2013. | |
Subsequent Events | ' |
Subsequent Events—The Company evaluated subsequent events through the issuance date with respect to the Consolidated Financial Statements as of and for the year ended December 31, 2013. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements—From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standards setting bodies that are adopted by us as of the specified effective date. | |
In July 2013, the FASB issued an accounting standard update which provides guidance on the risks that are permitted to be hedged in a fair value or cash flow hedge. Among those risks for financial assets and financial liabilities is the risk of changes in a hedged item's fair value or a hedged transaction's cash flows attributable to changes in the designated benchmark interest rate (referred to as interest rate risk). This update is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The implementation of this update did not have a material effect on the Company's Consolidated Financial Statements. | |
In July 2013, the FASB issued an accounting standard update which provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this update are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryfowards, similar tax losses, or tax credit carryforwards exist. The amendments in this update are effective for fiscal years and interim periods within those years, beginning after December 15, 2013, with early adoption permitted. The amendments would be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The implementation of this update is not expected to have a material effect on the Company's Consolidated Financial Statements. |
Organization_and_Operations_Ta
Organization and Operations (Tables) (Visa And MasterCard [Member]) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Visa And MasterCard [Member] | ' | ||||
Organization and Operations Tables | ' | ||||
Bankcard Processing Volume | ' | ||||
Following is a breakout of the Company’s total Visa and MasterCard settled card processing volume for the month ending December 31, 2013 by percentage processed under its individual bank sponsorship agreements: | |||||
% of December 2013 | |||||
Sponsor Bank | Card Processing | ||||
Volume | |||||
Wells Fargo Bank, N.A. | 67% | ||||
The Bancorp Bank | 22% | ||||
Barclays Bank Delaware | 11% | ||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Components of Interest Rate Swaps | ' | ||||||||
The following table summarizes the components of the interest rate swaps. | |||||||||
December 31, 2013 | 31-Dec-12 | ||||||||
(In thousands) | |||||||||
Notional value | $ | 25,000 | $ | 35,000 | |||||
Fair value (a) | (411 | ) | (817 | ) | |||||
Deferred tax benefit | 153 | 313 | |||||||
(a) Recorded as a liability in accrued expenses and other liabilities |
Acquisitions_Acquisitions_Tabl
Acquisitions Acquisitions (Tables) (Leaf Acquisition, LLC [Member]) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leaf Acquisition, LLC [Member] | ' | |||
Business Acquisition [Line Items] | ' | |||
Weighted Average Amortization Life for Acquired Finite-Lived Intangible Assets | ' | |||
The weighted average amortization life for the 2013 acquired finite lived intangible assets related to acquisition of Leaf is as follows: | ||||
Weighted-average amortization life | ||||
(In years) | ||||
Software | 7 | |||
Patents | 5 | |||
Overall | 6.9 |
Receivables_Tables
Receivables (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | ' | ||||||||||||||
A summary of receivables by major class was as follows at December 31, 2013 and 2012: | |||||||||||||||
December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
(In thousands) | |||||||||||||||
Accounts receivable from merchants | $ | 172,147 | $ | 160,702 | |||||||||||
Accounts receivable from bankcard networks | 26,842 | 19,588 | |||||||||||||
Accounts receivable from others | 2,083 | 1,596 | |||||||||||||
201,072 | 181,886 | ||||||||||||||
Less allowance for doubtful accounts | (1,032 | ) | (1,438 | ) | |||||||||||
Total receivables, net | $ | 200,040 | $ | 180,448 | |||||||||||
Summary of Allowance for Doubtful Accounts Receivables | ' | ||||||||||||||
A summary of the activity in the allowance for doubtful accounts for the three years ended December 31, 2013, 2012 | |||||||||||||||
and 2011 was as follows: | Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
(In thousands) | |||||||||||||||
Beginning balance | $ | 1,438 | $ | 1,407 | $ | 661 | |||||||||
Additions to allowance | 180 | 818 | 2,234 | ||||||||||||
Charges against allowance | (586 | ) | (787 | ) | (1,488 | ) | |||||||||
Ending balance | $ | 1,032 | $ | 1,438 | $ | 1,407 | |||||||||
Funds_Held_for_Customers_and_I1
Funds Held for Customers and Investments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Funds Held for Payroll Customers and Investments [Abstract] | ' | |||||||||||||||
Funds Held for Customers and Investments [Text Block] | ' | |||||||||||||||
Funds Held for Customers and Investments | ||||||||||||||||
A summary of Funds held for customers and investments, including the cost, gross unrealized gains (losses) and estimated fair value for investments held to maturity and investments available-for-sale by major security type and class of security was as follows at December 31, 2013 and 2012: | ||||||||||||||||
Cost | Gross | Gross | Estimated | |||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Funds Held for Customers: | ||||||||||||||||
Conservative income bond fund - available for sale | $ | 12,000 | $ | 10 | $ | — | $ | 12,010 | ||||||||
Fixed income bond fund - available for sale | 968 | 254 | — | 1,222 | ||||||||||||
Cash held for payroll customers | 88,376 | — | — | 88,376 | ||||||||||||
Cash held for Campus Solutions customers | 25,767 | — | — | 25,767 | ||||||||||||
Total Funds held for customers | $ | 127,111 | $ | 264 | $ | — | $ | 127,375 | ||||||||
Investments: | ||||||||||||||||
Investments held to maturity - Certificates of deposit (a) | $ | 33 | $ | — | $ | — | $ | 33 | ||||||||
Total investments | $ | 33 | $ | — | $ | — | $ | 33 | ||||||||
Cost | Gross | Gross | Estimated | |||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
December 31, 2012 | ||||||||||||||||
Funds Held for Customers: | ||||||||||||||||
Fixed income bond fund - available for sale | $ | 968 | $ | 244 | $ | — | $ | 1,212 | ||||||||
Cash held for payroll customers | 110,334 | — | — | 110,334 | ||||||||||||
Cash held for Campus Solutions customers | 19,859 | — | — | 19,859 | ||||||||||||
Total Funds held for customers | $ | 131,161 | $ | 244 | $ | — | $ | 131,405 | ||||||||
Investments: | ||||||||||||||||
Investments held to maturity - Certificates of deposit | $ | 1,199 | $ | — | $ | — | $ | 1,199 | ||||||||
Total investments | $ | 1,199 | $ | — | $ | — | $ | 1,199 | ||||||||
(a) Certificates of deposit have remaining term of 8 months. | ||||||||||||||||
Also included in Investments on the Consolidated Balance Sheet are other investments, at cost. As of December 31, 2013, other investments, at cost, includes a $4.0 million investment in the equity of ATX Innovation, Inc. ("Tabbedout"). | ||||||||||||||||
During the twelve months ended December 31, 2013 and 2012, the Company did not experience any other-than-temporary losses on its investments. | ||||||||||||||||
All available-for-sale debt securities and held to maturity investments, having aggregate amortized cost of $5.1 million and estimated fair value of $5.3 million, respectively, as of December 31, 2013, are due in one year or less. | ||||||||||||||||
Funds Held for Payroll Customers and Investments | ' | |||||||||||||||
A summary of Funds held for customers and investments, including the cost, gross unrealized gains (losses) and estimated fair value for investments held to maturity and investments available-for-sale by major security type and class of security was as follows at December 31, 2013 and 2012: | ||||||||||||||||
Cost | Gross | Gross | Estimated | |||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Funds Held for Customers: | ||||||||||||||||
Conservative income bond fund - available for sale | $ | 12,000 | $ | 10 | $ | — | $ | 12,010 | ||||||||
Fixed income bond fund - available for sale | 968 | 254 | — | 1,222 | ||||||||||||
Cash held for payroll customers | 88,376 | — | — | 88,376 | ||||||||||||
Cash held for Campus Solutions customers | 25,767 | — | — | 25,767 | ||||||||||||
Total Funds held for customers | $ | 127,111 | $ | 264 | $ | — | $ | 127,375 | ||||||||
Investments: | ||||||||||||||||
Investments held to maturity - Certificates of deposit (a) | $ | 33 | $ | — | $ | — | $ | 33 | ||||||||
Total investments | $ | 33 | $ | — | $ | — | $ | 33 | ||||||||
Cost | Gross | Gross | Estimated | |||||||||||||
Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | |||||||||||||||
(In thousands) | ||||||||||||||||
December 31, 2012 | ||||||||||||||||
Funds Held for Customers: | ||||||||||||||||
Fixed income bond fund - available for sale | $ | 968 | $ | 244 | $ | — | $ | 1,212 | ||||||||
Cash held for payroll customers | 110,334 | — | — | 110,334 | ||||||||||||
Cash held for Campus Solutions customers | 19,859 | — | — | 19,859 | ||||||||||||
Total Funds held for customers | $ | 131,161 | $ | 244 | $ | — | $ | 131,405 | ||||||||
Investments: | ||||||||||||||||
Investments held to maturity - Certificates of deposit | $ | 1,199 | $ | — | $ | — | $ | 1,199 | ||||||||
Total investments | $ | 1,199 | $ | — | $ | — | $ | 1,199 | ||||||||
(a) Certificates of deposit have remaining term of 8 months. |
Capitalized_Customer_Acquisiti1
Capitalized Customer Acquisition Costs, Net (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Capitalized Customer Acquisition Costs, Net [Abstract] | ' | |||||||||||||
Capitalized Customer Acquisition Costs Net | ' | |||||||||||||
A summary of net capitalized customer acquisition costs as of December 31, 2013 and 2012 was as follows: | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||
Capitalized signing bonuses | $ | 86,886 | $ | 84,728 | ||||||||||
Less accumulated amortization | (43,775 | ) | (42,941 | ) | ||||||||||
43,111 | 41,787 | |||||||||||||
Capitalized customer deferred acquisition costs | 45,241 | 37,736 | ||||||||||||
Less accumulated amortization | (27,325 | ) | (23,098 | ) | ||||||||||
17,916 | 14,638 | |||||||||||||
Capitalized customer acquisition costs, net | $ | 61,027 | $ | 56,425 | ||||||||||
Capitalized Customer Acquisition Activity | ' | |||||||||||||
A summary of the activity in capitalized customer acquisition costs, net for the three years ended December 31, 2013, | ||||||||||||||
2012 and 2011 was as follows: | Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(In thousands) | ||||||||||||||
Balance at beginning of period | $ | 56,425 | $ | 55,014 | $ | 59,251 | ||||||||
Plus additions to: | ||||||||||||||
Capitalized signing bonuses, net | 29,091 | 29,320 | 29,035 | |||||||||||
Capitalized customer deferred acquisition costs | 21,159 | 17,216 | 14,276 | |||||||||||
50,250 | 46,536 | 43,311 | ||||||||||||
Less amortization expense on: | ||||||||||||||
Capitalized signing bonuses, net (a) | (27,767 | ) | (29,244 | ) | (32,088 | ) | ||||||||
Capitalized customer deferred acquisition costs | (17,881 | ) | (15,881 | ) | (15,460 | ) | ||||||||
(45,648 | ) | (45,125 | ) | (47,548 | ) | |||||||||
Balance at end of period | $ | 61,027 | $ | 56,425 | $ | 55,014 | ||||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment, Net [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
A summary of property and equipment, net as of December 31, 2013 and 2012 is as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Computer hardware and software | $ | 184,515 | $ | 151,916 | |||||
Building | 54,910 | 54,359 | |||||||
Leasehold improvements | 7,815 | 5,734 | |||||||
Furniture, fixtures and equipment | 17,761 | 16,342 | |||||||
Land | 7,427 | 5,873 | |||||||
272,428 | 234,224 | ||||||||
Less accumulated depreciation | (125,040 | ) | (109,193 | ) | |||||
$ | 147,388 | $ | 125,031 | ||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | ' | ||||||||||||||||||||||||
Intangible Assets — Intangible assets consisted of the following as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
December 31, 2013 | Amortization Life and Method | ||||||||||||||||||||||||
Gross | Accumulated | Net Asset | |||||||||||||||||||||||
Assets | Amortization | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Finite Lived Assets: | |||||||||||||||||||||||||
Customer relationships | $ | 49,814 | $ | 14,107 | $ | 35,707 | 3 to 18 years—proportional cash flow | ||||||||||||||||||
Merchant portfolio | 4,095 | 2,703 | 1,392 | 7 years—proportional cash flow | |||||||||||||||||||||
Software | 20,750 | 10,934 | 9,816 | 2 to 5 years—straight line | |||||||||||||||||||||
Non-compete agreements | 4,489 | 1,880 | 2,609 | 3 to 5 years—straight line | |||||||||||||||||||||
Other | 385 | 52 | 333 | 2 to 9 years—straight line | |||||||||||||||||||||
$ | 79,533 | $ | 29,676 | $ | 49,857 | ||||||||||||||||||||
December 31, 2012 | Amortization Life and Method | ||||||||||||||||||||||||
Gross | Accumulated | Net Asset | |||||||||||||||||||||||
Assets | Amortization | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Finite Lived Assets: | |||||||||||||||||||||||||
Customer relationships | $ | 52,125 | $ | 8,318 | $ | 43,807 | 3 to 18 years—proportional cash flow | ||||||||||||||||||
Merchant portfolio | 3,345 | 2,316 | 1,029 | 7 years—proportional cash flow | |||||||||||||||||||||
Software | 14,150 | 9,016 | 5,134 | 3 to 5 years—straight line | |||||||||||||||||||||
Non-compete agreements | 4,590 | 1,030 | 3,560 | 3 to 5 years—straight line | |||||||||||||||||||||
Other | 85 | 21 | 64 | 2 to 9 years—straight line | |||||||||||||||||||||
$ | 74,295 | $ | 20,701 | $ | 53,594 | ||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ||||||||||||||||||||||||
The estimated amortization expense related to intangible assets for the next five years is as follows: | |||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2014 | $ | 8,499 | |||||||||||||||||||||||
2015 | 7,954 | ||||||||||||||||||||||||
2016 | 6,952 | ||||||||||||||||||||||||
2017 | 5,628 | ||||||||||||||||||||||||
2018 | 4,398 | ||||||||||||||||||||||||
Thereafter | 16,426 | ||||||||||||||||||||||||
$ | 49,857 | ||||||||||||||||||||||||
Schedule of Goodwill | ' | ||||||||||||||||||||||||
Goodwill — The changes in the carrying amount of goodwill by segment for the years ended December 31, 2013, | |||||||||||||||||||||||||
2012 and 2011 were as follows: | Card Payment Processing | Heartland Ovation Payroll | Heartland School Solutions | Campus Solutions | Other | Total | |||||||||||||||||||
Balance at January 1, 2011 | $ | 43,701 | $ | — | $ | 5,507 | $ | 3,321 | $ | 6,501 | $ | 59,030 | |||||||||||||
Goodwill acquired during the period | — | — | 34,506 | — | — | 34,506 | |||||||||||||||||||
Other (a) | — | — | 719 | — | — | 719 | |||||||||||||||||||
Balance at December 31, 2011 | 43,701 | — | 40,732 | 3,321 | 6,501 | 94,255 | |||||||||||||||||||
Goodwill acquired during the period | — | 30,831 | 15,231 | 30,358 | — | 76,420 | |||||||||||||||||||
Other (a) | — | — | (2,613 | ) | — | — | (2,613 | ) | |||||||||||||||||
Balance at December 31, 2012 | 43,701 | 30,831 | 53,350 | 33,679 | 6,501 | 168,062 | |||||||||||||||||||
Goodwill acquired during the period | 20,619 | — | — | — | — | 20,619 | |||||||||||||||||||
Other (a) | — | 187 | — | 2,110 | — | 2,297 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 64,320 | $ | 31,018 | $ | 53,350 | $ | 35,789 | $ | 6,501 | $ | 190,978 | |||||||||||||
(a) Reflects adjustments to preliminary allocations of purchase price within the measurement period. | |||||||||||||||||||||||||
PercentofGoodwillbySegment [Table Text Block] | ' | ||||||||||||||||||||||||
Percentage of total reportable segments' assets that was goodwill as of December 31, 2013, 2012, and 2011 is as | |||||||||||||||||||||||||
follows: | Percent of Goodwill to Reportable Segments' Total Assets | ||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Card Payment Processing | 11.30% | 9.40% | 9.70% | ||||||||||||||||||||||
Heartland Ovation Payroll | 19.90% | 18.50% | — | ||||||||||||||||||||||
Heartland School Solutions | 67.90% | 74.90% | 77.60% | ||||||||||||||||||||||
Campus Solutions | 43.80% | 43.60% | 48.70% | ||||||||||||||||||||||
Other | 37.70% | 20.00% | 20.30% | ||||||||||||||||||||||
Processing_Liabilities_Tables
Processing Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Processing Liabilities and Loss Reserves [Abstract] | ' | ||||||||||||
Summary Of Processing Liabilities And Loss Reserves | ' | ||||||||||||
A summary of processing liabilities and loss reserves was as follows at December 31, 2013 and 2012: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Merchant bankcard processing | $ | 121,143 | $ | 86,882 | |||||||||
Merchant deposits | 8,223 | 6,436 | |||||||||||
Loss reserves | 1,505 | 1,955 | |||||||||||
$ | 130,871 | $ | 95,273 | ||||||||||
Schedule Of Credit And Fraud Loss Reserve | ' | ||||||||||||
A summary of the activity in the loss reserve for the years ended December 31, 2013, 2012, and 2011 was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Beginning balance | $ | 1,955 | $ | 1,957 | 1,625 | ||||||||
Additions to reserve | 2,738 | 2,123 | 5,658 | ||||||||||
Charges against reserve (a) | (3,188 | ) | (2,125 | ) | (5,326 | ) | |||||||
Ending balance | $ | 1,505 | $ | 1,955 | 1,957 | ||||||||
(a) | Included in these amounts are Payroll Processing segment losses for the years ended December 31, 2013, 2012, and 2011 of $111,000, $93,000 and $223,000 |
Accrued_Buyout_Liability_Table
Accrued Buyout Liability (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Accrued Buyout Liability [Abstract] | ' | |||||||||||||
Summary of Accrued Buyout Liability | ' | |||||||||||||
A summary of the accrued buyout liability was as follows as of December 31, 2013 and 2012: | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
(In thousands) | ||||||||||||||
Vested Relationship Managers and sales managers | $ | 38,082 | $ | 33,926 | ||||||||||
Unvested Relationship Managers and sales managers | 1,297 | 1,484 | ||||||||||||
39,379 | 35,410 | |||||||||||||
Less current portion | (13,943 | ) | (10,478 | ) | ||||||||||
Long-term portion of accrued buyout liability | $ | 25,436 | $ | 24,932 | ||||||||||
Summary of Activity in Accrued Buyout Liability | ' | |||||||||||||
A summary of the activity in the accrued buyout liability for the three years ended December 31, 2013, 2012, and | ||||||||||||||
2011 was as follows: | Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(In thousands) | ||||||||||||||
Beginning balance | $ | 35,410 | $ | 31,658 | $ | 28,810 | ||||||||
Increase in settlement obligation, net | 17,620 | 15,638 | 13,228 | |||||||||||
Buyouts | (13,651 | ) | (11,886 | ) | (10,380 | ) | ||||||||
Ending balance | $ | 39,379 | $ | 35,410 | $ | 31,658 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||
Summary of Common Stock Repurchases | ' | |||||||||||||||||
A summary of repurchase activity under these authorizations is as follows: | ||||||||||||||||||
Repurchase Programs by Authorization Date | ||||||||||||||||||
Oct-11 | Jul-12 | Nov-12 | May-13 | Total | ||||||||||||||
Activity For the Year ended December 31, 2013 | ||||||||||||||||||
Shares repurchased | — | — | 952,183 | 534,600 | 1,486,783 | |||||||||||||
Cost of shares repurchased (in thousands) | — | — | $29,813 | $20,488 | $50,301 | |||||||||||||
Average cost per share | — | — | $31.31 | $38.32 | $33.83 | |||||||||||||
Remaining authorization (in thousands) | — | — | — | $54,512 | $54,512 | |||||||||||||
Activity For the Year ended December 31, 2012 | ||||||||||||||||||
Shares repurchased | 1,157,440 | 1,760,804 | 715,800 | — | 3,634,044 | |||||||||||||
Cost of shares repurchased (in thousands) | $33,172 | $50,000 | $20,187 | — | $103,359 | |||||||||||||
Average cost per share | $28.66 | $28.40 | $28.20 | — | $28.44 | |||||||||||||
Activity For the Year ended December 31, 2011 | ||||||||||||||||||
Shares repurchased | 778,889 | — | — | — | 778,889 | |||||||||||||
Cost of shares repurchased (in thousands) | $16,828 | — | — | — | $16,828 | |||||||||||||
Average cost per share | $21.61 | — | — | — | $21.61 | |||||||||||||
Schedule Of Dividends Paid | ' | |||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the Company's Board of Directors declared the following quarterly cash dividends on common stock: | ||||||||||||||||||
Date Declared | Record Date | Date Paid | Amount Paid | |||||||||||||||
Per Common Share | ||||||||||||||||||
Twelve Months Ended December 31, 2013 | ||||||||||||||||||
February 7, 2013 | March 4, 2013 | March 15, 2013 | $0.07 | |||||||||||||||
April 30, 2013 | May 24, 2013 | June 15, 2013 | $0.07 | |||||||||||||||
July 30, 2013 | August 23, 2013 | September 13, 2013 | $0.07 | |||||||||||||||
October 29, 2013 | November 22, 2013 | December 13, 2013 | $0.07 | |||||||||||||||
Twelve Months Ended December 31, 2012 | ||||||||||||||||||
February 8, 2012 | March 2, 2012 | March 15, 2012 | $0.06 | |||||||||||||||
May 1, 2012 | May 24, 2012 | June 15, 2012 | $0.06 | |||||||||||||||
July 27, 2012 | August 24, 2012 | September 14, 2012 | $0.06 | |||||||||||||||
November 1, 2012 | November 23, 2012 | December 14, 2012 | $0.06 | |||||||||||||||
Twelve Months Ended December 31, 2011 | ||||||||||||||||||
February 16, 2011 | March 4, 2011 | March 15, 2011 | $0.04 | |||||||||||||||
May 13, 2011 | May 24, 2011 | June 15, 2011 | $0.04 | |||||||||||||||
August 2, 2011 | August 24, 2011 | September 15, 2011 | $0.04 | |||||||||||||||
October 21, 2011 | November 24, 2011 | December 15, 2011 | $0.04 | |||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||||||||||||||
The provision for income taxes for the three years ended December 31, 2013, 2012, and 2011 consists of the | |||||||||||||||||||||
following: | Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Continuing Operations: | (in thousands) | ||||||||||||||||||||
Current: | |||||||||||||||||||||
Federal | $ | 31,326 | $ | 32,155 | $ | 23,949 | |||||||||||||||
State | 4,810 | 3,481 | 740 | ||||||||||||||||||
Deferred: | |||||||||||||||||||||
Federal | 8,766 | 3,737 | (435 | ) | |||||||||||||||||
State | 1,548 | 1,318 | 2,297 | ||||||||||||||||||
Total provision for income taxes from continuing operations | 46,450 | 40,691 | 26,551 | ||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||||||||||
The differences in federal income taxes provided (benefited) from continuing operations and the amounts determined by applying the federal statutory tax rate of 35% to income before income taxes for the three years ended December 31, 2013, 2012, and 2011 are: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
% | Amount | % | Amount | % | Amount | ||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | |||||||||||||||||||
U.S. federal income tax at statutory rate | 35 | % | $ | 42,193 | 35 | % | $ | 36,765 | 35 | % | $ | 24,338 | |||||||||
U.S. state and local income taxes, net | 3.26 | % | 3,932 | 2.93 | % | 3,065 | 2.88 | % | 2,001 | ||||||||||||
Nondeductible expenses | 0.52 | % | 621 | 0.46 | % | 492 | 0.37 | % | 261 | ||||||||||||
Research and development credit, net | (1.19 | )% | (1,435 | ) | — | % | — | — | — | ||||||||||||
Valuation allowance | 0.6 | % | 724 | — | % | — | (0.01 | )% | (5 | ) | |||||||||||
U.S. tax on foreign income, net | — | % | — | 0.38 | % | 400 | — | — | |||||||||||||
Other | 0.34 | % | 415 | (0.03 | )% | (31 | ) | (0.06 | )% | (44 | ) | ||||||||||
Provision for income taxes from | 38.53 | % | $ | 46,450 | 38.74 | % | $ | 40,691 | 38.18 | % | $ | 26,551 | |||||||||
continuing operations | |||||||||||||||||||||
Unrecognized Tax Benefits Reconciliation | ' | ||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013, 2012, and 2011 is as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Balance at January 1, | $ | 3,069 | $ | 1,819 | $ | 1,309 | |||||||||||||||
Additions based on tax positions related to the current year | 2,681 | 1,429 | 637 | ||||||||||||||||||
Lapse of statute of limitations | (117 | ) | (32 | ) | (127 | ) | |||||||||||||||
Settlements | — | (147 | ) | — | |||||||||||||||||
Balance at December 31, | $ | 5,633 | $ | 3,069 | $ | 1,819 | |||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||||||||||
The net deferred tax asset (liability) was comprised of the following at December 31, 2013 and 2012: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Deferred tax assets: | (In thousands) | ||||||||||||||||||||
Merchant contract costs | $ | 8,542 | $ | 8,165 | |||||||||||||||||
Loss reserve and accounts receivable allowance | 859 | 1,189 | |||||||||||||||||||
Share-based compensation | 8,154 | 8,702 | |||||||||||||||||||
FIN No. 48 deferred tax reserve-state tax | 1,968 | 1,185 | |||||||||||||||||||
Other comprehensive income | 170 | 312 | |||||||||||||||||||
Net operating loss carry-forward | 11,034 | 8,333 | |||||||||||||||||||
Reserve for litigation | 591 | 605 | |||||||||||||||||||
State net operating loss carry-forwards | 24 | 30 | |||||||||||||||||||
Reserve for processor incentive | 44 | 217 | |||||||||||||||||||
Deferred compensation | 2,632 | 2,950 | |||||||||||||||||||
Deferred state tax assets | 1,487 | 1,141 | |||||||||||||||||||
Other | 1,229 | 799 | |||||||||||||||||||
Deferred tax assets | 36,734 | 33,628 | |||||||||||||||||||
Less valuation allowance | (2,906 | ) | (158 | ) | |||||||||||||||||
Net deferred tax assets | 33,828 | 33,470 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||
Capitalized signing bonus | 17,173 | 16,068 | |||||||||||||||||||
Software development | 27,419 | 18,970 | |||||||||||||||||||
Unearned rent | (240 | ) | 227 | ||||||||||||||||||
Property and equipment | 3,597 | 3,916 | |||||||||||||||||||
Goodwill | 12,591 | 9,044 | |||||||||||||||||||
Investment in CPOS | — | 400 | |||||||||||||||||||
Intangibles | 4,340 | 4,002 | |||||||||||||||||||
Deferred tax liabilities | 64,880 | 52,627 | |||||||||||||||||||
Net deferred tax liabilities | (31,052 | ) | (19,157 | ) | |||||||||||||||||
Less current deferred tax asset, net | 9,548 | 10,475 | |||||||||||||||||||
Net deferred tax liabilities - non-current portion | $ | (40,600 | ) | $ | (29,632 | ) | |||||||||||||||
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||
Schedule of Employee Service Share-based Compensation Allocation of Recognized Period Costs | ' | |||||||||||||||||||
Amounts the Company recognized in its consolidated financial statements for the years ended December 31, 2013, 2012, and 2011 with respect to these share-based plans were as follows: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Compensation expense recognized on share-based | $ | 12,838 | $ | 14,187 | $ | 9,548 | ||||||||||||||
plans before income tax benefit | ||||||||||||||||||||
Related income tax benefit recognized in the | 4,981 | 5,458 | 3,635 | |||||||||||||||||
income statement | ||||||||||||||||||||
Cash received from stock option exercises | 14,174 | 18,303 | 9,685 | |||||||||||||||||
Excess tax benefit recorded for tax deductions | 11,596 | 5,954 | 3,454 | |||||||||||||||||
resulting from the exercise of stock options | ||||||||||||||||||||
Tax benefit realized as reductions of estimated tax | 8,587 | 4,220 | 2,954 | |||||||||||||||||
payments during the period | ||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | |||||||||||||||||||
The fair value of options granted during the years ended December 31, 2012 and 2011 was estimated at the grant date using the following weighted average assumptions: | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||
Expected volatility | 55 | % | 55 | % | ||||||||||||||||
Expected life | 3.75 years | 3.65 years | ||||||||||||||||||
Expected dividends | 1 | % | 0.8 | % | ||||||||||||||||
Risk-free interest rate | 0.51 | % | 0.55 | % | ||||||||||||||||
Summary of Future Diluted Earnings Per Share Target Associated With Restricted Share Units | ' | |||||||||||||||||||
In the fourth quarters of 2011, 2012, and 2013, the Compensation Committee of the Company's Board of Directors approved grants of performance-based Restricted Share Units with grant-specific vesting and performance target terms as shown in the following table: | ||||||||||||||||||||
Performance Awards by Grant Date | ||||||||||||||||||||
4th Quarter 2011 | 4th Quarter 2012 | 4th Quarter 2013 | ||||||||||||||||||
RSU's Granted | 164,808 | 72,004 | 115,223 | |||||||||||||||||
Vesting during 2014 | 50% | — | — | |||||||||||||||||
Vesting during 2015 | 50% | 50% | — | |||||||||||||||||
Vesting during 2016 | — | 50% | — | |||||||||||||||||
Vesting during 2017 | — | — | 50% | |||||||||||||||||
Vesting during 2018 | — | — | 50% | |||||||||||||||||
Grant Performance Target | (a) | (b) | (c) | |||||||||||||||||
(a) | These Restricted Share Units will vest 50% in 2014 and 50% in 2015 since the Company achieved a pro forma diluted earnings per share compound annual growth rate ("CAGR") for the two-year period ending December 31, 2013 in excess of the performance target. The CAGR achieved for the two-year period ending December 31, 2013 resulted in holders earning the maximum 100% increase in the number of shares awarded. | |||||||||||||||||||
(b) | These Restricted Share Units will vest only if the Company achieves a pro forma diluted earnings per share CAGR of fifteen percent (15%) for the two-year period ending December 31, 2014. For each 1% that the CAGR actually achieved for the two year period ending on December 31, 2014 is above the 15% target, the number of shares underlying the Restricted Share Units awarded would be increased by 2.08%; provided, however, that the maximum increase in the number of shares that may be awarded is 125%. Likewise, for each 1% that the CAGR actually achieved for the two-year period ending on December 31, 2014 is below the 15% target, the number of shares underlying the Restricted Share Units awarded would be decreased by 1.31%. If the target CAGR is missed by 67% or more, then the number of shares awarded is zero. The Company has recorded expense on these Restricted Share Units based on achieving the 15% target. | |||||||||||||||||||
(c) | These Restricted Share Units will vest only if the Company achieves a pro forma diluted earnings per share growth rate of forty percent (40%) over the three-year period ending December 31, 2016. For each 1% that the growth rate actually achieved for the three-year period ending on December 31, 2016 is above the 40% target, the number of shares underlying the Restricted Share Units awarded would be increased by 1.20%; provided, however, that the maximum increase in the number of shares that may be awarded is 150%. Likewise, for each 1% that the growth rate actually achieved for the three-year period ending on December 31, 2016 is below the 40% target, the number of shares underlying the Restricted Share Units awarded would be decreased by 1.50%. If the target growth rate is missed by 50% or more, then the number of shares awarded is zero. The Company has recorded expense on these Restricted Share Units based on achieving the 40% target | |||||||||||||||||||
Pro forma diluted earnings per share for (a), (b) and (c) performance targets will be calculated excluding non-operating gains and losses, if any, and excluding the after-tax impact of share-based compensation expense. The closing price of the Company's common stock on the grant date equals the grant date fair value of these nonvested Restricted Share Units awards and will be recognized as compensation expense over their vesting periods. | ||||||||||||||||||||
Schedule of Share-based Compensation, Activity | ' | |||||||||||||||||||
Stock option and restricted share activity in the Company's share-based plans during 2011, 2012 and 2013 was as follows: | ||||||||||||||||||||
Stock Options | Restricted Share Units | Combined | ||||||||||||||||||
Shares | Weighted-Average Exercise Price | Shares | Weighted-Average Grant Price | Shares | Weighted-Average Exercise/Grant Price | |||||||||||||||
Options outstanding | 7,454,166 | $ | 15.28 | 880,110 | $ | 14.23 | 8,334,276 | $ | 15.17 | |||||||||||
at January 1, 2011 | ||||||||||||||||||||
Issued | 31,568 | $ | 20.59 | 372,532 | $ | 22.02 | 404,100 | $ | 21.91 | |||||||||||
Exercised/vested | (1,133,974 | ) | $ | 8.54 | (112,480 | ) | $ | 10.59 | (1,246,454 | ) | $ | 8.72 | ||||||||
Forfeited/cancelled | (385,695 | ) | $ | 20.39 | (37,060 | ) | $ | 16.35 | (422,755 | ) | $ | 20.04 | ||||||||
Outstanding at | 5,966,065 | $ | 16.26 | 1,103,102 | $ | 17.11 | 7,069,167 | $ | 16.39 | |||||||||||
December 31, 2011 | ||||||||||||||||||||
Options exercisable | 2,264,769 | $ | 16.67 | — | $ | — | 2,264,769 | $ | 16.67 | |||||||||||
at December 31, 2011 | ||||||||||||||||||||
Issued | 27,496 | $ | 24.28 | 568,624 | $ | 29.88 | 596,120 | $ | 29.62 | |||||||||||
Exercised/vested | (1,522,429 | ) | $ | 12.03 | (175,000 | ) | $ | 14.57 | (1,697,429 | ) | $ | 12.29 | ||||||||
Forfeited/cancelled | (240,945 | ) | $ | 22.2 | (32,090 | ) | $ | 21.78 | (273,035 | ) | $ | 22.15 | ||||||||
Outstanding at | 4,230,187 | $ | 17.39 | 1,464,636 | $ | 22.31 | 5,694,823 | $ | 18.65 | |||||||||||
December 31, 2012 | ||||||||||||||||||||
Options exercisable | 808,962 | $ | 12.16 | — | $ | — | 808,962 | $ | 12.16 | |||||||||||
at December 31, 2012 | ||||||||||||||||||||
Issued | — | $ | — | 491,542 | $ | 42.5 | 491,542 | $ | 42.5 | |||||||||||
Exercised/vested | (1,264,825 | ) | $ | 11.21 | (502,225 | ) | $ | 18.72 | (1,767,050 | ) | $ | 13.34 | ||||||||
Forfeited/cancelled | (2,283,218 | ) | $ | 21.84 | (98,451 | ) | $ | 23.88 | (2,381,669 | ) | $ | 21.92 | ||||||||
Outstanding at | 682,144 | $ | 14.26 | 1,355,502 | $ | 30.83 | 2,037,646 | $ | 25.29 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Options exercisable | 394,252 | $ | 13.2 | — | $ | — | 394,252 | $ | 13.2 | |||||||||||
at December 31, 2013 | ||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | ' | |||||||||||||||||||
Stock options and Restricted Share Units outstanding and exercisable at December 31, 2013 are summarized by exercise price below: | ||||||||||||||||||||
Outstanding | Exercisable | |||||||||||||||||||
Exercise price per share | Stock Options | Restricted Share Units | Total | Stock Options | Restricted Share Units | Total | ||||||||||||||
$6.25 to $12.16 | 164,371 | — | 164,371 | 164,371 | — | 164,371 | ||||||||||||||
$15.22 to $24.28 | 517,773 | 457,715 | 975,488 | 229,881 | — | 229,881 | ||||||||||||||
$29.57 to $44.62 | — | 897,787 | 897,787 | — | — | — | ||||||||||||||
682,144 | 1,355,502 | 2,037,646 | 394,252 | — | 394,252 | |||||||||||||||
The table below summarizes stock options and Restricted Share Units outstanding at December 31, 2013 by their weighted average remaining contractual term: | ||||||||||||||||||||
Stock Options | Restricted Share Units | |||||||||||||||||||
Exercise price per share | Outstanding | Average Remaining Contractual Term | Outstanding | Average Remaining Contractual Term | ||||||||||||||||
$6.25 to $12.16 | 164,371 | 0.6 years | — | — | ||||||||||||||||
$15.22 to $24.28 | 517,773 | 1.7 years | 457,715 | 1.2 years | ||||||||||||||||
$29.57 to $44.62 | — | — | 897,787 | 3.2 years | ||||||||||||||||
682,144 | 1.4 years | 1,355,502 | 2.4 years | |||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' | |||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||
The following tables provide the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2013 and 2012: | ||||||||||||||||
December 31, 2013 | Fair Value Measurement Category | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | (In thousands) | |||||||||||||||
Investments available for sale: | ||||||||||||||||
Conservative income bond fund (a) | $ | 12,010 | $ | 12,010 | $ | — | $ | — | ||||||||
Fixed income bond fund (a) | 1,222 | 1,222 | — | — | ||||||||||||
Total assets | $ | 13,232 | $ | 13,232 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | 411 | $ | — | $ | 411 | $ | — | ||||||||
Total liabilities | $ | 411 | $ | — | $ | 411 | $ | — | ||||||||
December 31, 2012 | Fair Value Measurement Category | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | (In thousands) | |||||||||||||||
Investments available for sale: | ||||||||||||||||
Fixed income bond fund (a) | $ | 1,212 | $ | 1,212 | $ | — | $ | — | ||||||||
Total assets | $ | 1,212 | $ | 1,212 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | 817 | $ | — | $ | 817 | $ | — | ||||||||
Total liabilities | $ | 817 | $ | — | $ | 817 | $ | — | ||||||||
(a) amounts included in Funds held for customers on the Consolidated Balance Sheet | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | ' | |||||||||||||||
The following tables provide the assets and liabilities carried at fair value measured on a non-recurring basis as of December 31, 2013 and 2012: | ||||||||||||||||
December 31, 2013 | Fair Value Measurement Category | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | (In thousands) | |||||||||||||||
Investments held to maturity: | ||||||||||||||||
Certificates of deposit | $ | 33 | $ | — | $ | 33 | $ | — | ||||||||
Total assets | $ | 33 | $ | — | $ | 33 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Revolving credit facility | $ | 150,000 | $ | — | $ | 150,000 | $ | — | ||||||||
Total liabilities | $ | 150,000 | $ | — | $ | 150,000 | $ | — | ||||||||
December 31, 2012 | Fair Value Measurement Category | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | (In thousands) | |||||||||||||||
Investments held to maturity: | ||||||||||||||||
Certificates of deposit | $ | 1,199 | $ | — | $ | 1,199 | $ | — | ||||||||
Total assets | $ | 1,199 | $ | — | $ | 1,199 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Term Credit Facility | $ | 70,000 | $ | — | $ | 70,000 | $ | — | ||||||||
Prior Revolving Credit Facility | 82,000 | — | 82,000 | — | ||||||||||||
Total liabilities | $ | 152,000 | $ | — | $ | 152,000 | $ | — | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | ||||||||||||||||||||
Future minimum lease payments for all non-cancelable leases as of December 31, 2013 were as follows: | |||||||||||||||||||||
For the Years Ended December 31, | Operating | ||||||||||||||||||||
Leases (a) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
2014 | $ | 10,410 | |||||||||||||||||||
2015 | 7,747 | ||||||||||||||||||||
2016 | 5,479 | ||||||||||||||||||||
2017 | 3,627 | ||||||||||||||||||||
2018 | 3,624 | ||||||||||||||||||||
Thereafter | 8,020 | ||||||||||||||||||||
Total future minimum lease payments | $ | 38,907 | |||||||||||||||||||
(a) There were no material capital leases at December 31, 2013. | |||||||||||||||||||||
Schedule Of Contractual Obligations | ' | ||||||||||||||||||||
The following table reflects the Company’s other significant contractual obligations, including leases from above, as of December 31, 2013: | |||||||||||||||||||||
Payments Due by Period | |||||||||||||||||||||
Contractual Obligations | Total | Less than | 1 to 3 | 3 to 5 | More | ||||||||||||||||
1 year | Years | years | than 5 | ||||||||||||||||||
years | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Processing providers (a) | $ | 12,922 | $ | 6,844 | $ | 6,078 | $ | — | $ | — | |||||||||||
Telecommunications providers (b) | 6,939 | 3,359 | 2,743 | 837 | — | ||||||||||||||||
Facility and equipment leases | 38,907 | 10,410 | 13,226 | 7,251 | 8,020 | ||||||||||||||||
Revolving Credit Facility (c) | 150,000 | — | — | 150,000 | — | ||||||||||||||||
$ | 208,768 | $ | 20,613 | $ | 22,047 | $ | 158,088 | $ | 8,020 | ||||||||||||
(a) | The Company has agreements with several third-party processors to provide to us on a non-exclusive basis payment processing and transmittal, transaction authorization and data capture services, and access to various reporting tools. The Company's agreements with third-party processors require it to submit a minimum monthly number of transactions or volume for processing. If the Company submits a number of transactions or volume that is lower than the minimum, it is required to pay the third-party processors the fees that they would have received if the Company had submitted the required minimum number or volume of transactions. | ||||||||||||||||||||
(b) | The Company has agreements in place with several large telecommunications companies that provide data center services, wide area network connectivity, and voice services that are used by both the Company call center and card payment processing platforms. These providers require both dollar and term commitments for the services they provide. If the Company does not meet the minimum terms, then there is a requirement to pay the remaining commitments. | ||||||||||||||||||||
(c) | Interest rates on the Revolving Credit Facility are variable in nature; however, the Company is party to fixed-pay amortizing interest rate swaps having a remaining notional amount at December 31, 2013 of $25.0 million. If interest rates were to remain at the December 31, 2013 level, the Company would make interest payments of $1.4 million in the next year and $0.5 million in the next 1 to 3 years or a total of $2.0 million including net settlements on the fixed-pay amortizing interest rate swaps. The Revolving Credit Facility is available on a revolving basis until October 23, 2018. |
Segments_Tables
Segments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||||||
A summary of the Company’s segments for the three years ended December 31, 2013, 2012, and 2011 was as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | (In thousands) | ||||||||||||
Card Payment Processing | $ | 1,981,011 | $ | 1,923,145 | $ | 1,925,667 | |||||||
Heartland School Solutions | 50,541 | 36,614 | 11,178 | ||||||||||
Heartland Ovation Payroll | 44,565 | 21,368 | 19,505 | ||||||||||
Campus Solutions | 36,186 | 8,065 | 6,488 | ||||||||||
Other | 23,069 | 24,244 | 22,739 | ||||||||||
Total revenues | $ | 2,135,372 | $ | 2,013,436 | $ | 1,985,577 | |||||||
Depreciation and amortization | |||||||||||||
Card Payment Processing | $ | 26,934 | $ | 24,057 | $ | 23,313 | |||||||
Heartland School Solutions | 2,282 | 482 | 1,412 | ||||||||||
Heartland Ovation Payroll | 3,478 | 1,153 | 694 | ||||||||||
Campus Solutions | 2,330 | 418 | 263 | ||||||||||
Other | 1,641 | 1,481 | 1,288 | ||||||||||
Unallocated Corporate Administration Amounts | (1,311 | ) | 241 | 471 | |||||||||
Total depreciation and amortization | $ | 35,354 | $ | 27,832 | $ | 27,441 | |||||||
Interest Income | |||||||||||||
Card Payment Processing | $ | 121 | $ | 201 | $ | 142 | |||||||
Campus Solutions | 3 | — | — | ||||||||||
Total interest income | $ | 124 | $ | 201 | $ | 142 | |||||||
Interest Expense | |||||||||||||
Card Payment Processing | $ | 5,425 | $ | 3,729 | $ | 4,329 | |||||||
Campus Solutions | 7 | 7 | 2 | ||||||||||
Other | — | — | 3 | ||||||||||
Reconciling | (3 | ) | (290 | ) | (212 | ) | |||||||
Total interest expense | $ | 5,429 | $ | 3,446 | $ | 4,122 | |||||||
Net income from continuing operations | |||||||||||||
Card Payment Processing | $ | 80,985 | $ | 75,691 | $ | 68,613 | |||||||
Heartland School Solutions | 9,085 | 5,371 | 2,255 | ||||||||||
Heartland Ovation Payroll | 2,056 | 1,682 | 393 | ||||||||||
Campus Solutions | 2,255 | (104 | ) | (404 | ) | ||||||||
Other | 462 | 975 | 1,589 | ||||||||||
Unallocated corporate administration amounts | (20,741 | ) | (19,262 | ) | (29,458 | ) | |||||||
Total net income from continuing operations | $ | 74,102 | $ | 64,353 | $ | 42,988 | |||||||
Assets | |||||||||||||
Card Payment Processing | $ | 566,943 | $ | 466,196 | $ | 451,757 | |||||||
Heartland School Solutions | 78,573 | 71,182 | 52,520 | ||||||||||
Heartland Ovation Payroll | 155,823 | 166,317 | 53,750 | ||||||||||
Campus Solutions | 81,719 | 77,168 | 6,826 | ||||||||||
Other | 17,247 | 32,551 | 32,068 | ||||||||||
Total assets | $ | 900,305 | $ | 813,414 | $ | 596,921 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | ||||||||||||
The following is a reconciliation of the amounts used to calculate basic and diluted earnings per share: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share) | |||||||||||||
Numerator: | |||||||||||||
Income from continuing operations attributable to Heartland | $ | 74,712 | $ | 64,353 | $ | 42,988 | |||||||
Income from discontinued operations attributable to Heartland | 3,914 | 1,536 | 951 | ||||||||||
Net income attributable to Heartland | $ | 78,626 | $ | 65,889 | $ | 43,939 | |||||||
Denominator: | |||||||||||||
Basic weighted average shares outstanding | 36,791 | 38,468 | 38,931 | ||||||||||
Effect of dilutive instruments: | |||||||||||||
Stock options and restricted stock units | 1,262 | 1,590 | 1,302 | ||||||||||
Diluted weighted average shares outstanding | 38,053 | 40,058 | 40,233 | ||||||||||
Basic earnings per share: | |||||||||||||
Income from continuing operations | $ | 2.03 | $ | 1.67 | $ | 1.1 | |||||||
Income from discontinued operations | $ | 0.11 | $ | 0.04 | $ | 0.03 | |||||||
Basic earnings per share | $ | 2.14 | $ | 1.71 | $ | 1.13 | |||||||
Diluted earnings per share: | |||||||||||||
Income from continuing operations | $ | 1.96 | $ | 1.6 | $ | 1.07 | |||||||
Income from discontinued operations | $ | 0.1 | $ | 0.04 | $ | 0.02 | |||||||
Diluted earnings per share | $ | 2.06 | $ | 1.64 | $ | 1.09 | |||||||
Discontinued_Operation_Tables
Discontinued Operation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Discontinued Operation, Balance Sheet and Income Statement Disclosures | ' | ||||||||||||
Assets held for sale and liabilities related to assets held for sale included the following at December 31, 2013 and 2012: | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Cash and cash equivalents | $ | — | $ | 2,141 | |||||||||
Receivables, net | — | 904 | |||||||||||
Investments held to maturity | — | 3,229 | |||||||||||
Inventory | — | 406 | |||||||||||
Property and equipment, net | — | 620 | |||||||||||
Goodwill | — | 9,337 | |||||||||||
Intangible assets, net | — | 260 | |||||||||||
Other assets | — | 147 | |||||||||||
Total assets held for sale | $ | — | $ | 17,044 | |||||||||
Accounts payable | $ | — | $ | 497 | |||||||||
Processing liabilities | — | 86 | |||||||||||
Accrued expenses and other liabilities | — | 1,089 | |||||||||||
Total liabilities related to assets held for sale | $ | — | $ | 1,672 | |||||||||
Income from discontinued operations for the years ended December 31, 2013, 2012 and 2011 were as follows (in thousands of dollars): | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues | $ | 1,117 | $ | 13,123 | $ | 11,373 | |||||||
Expenses | 870 | 10,186 | 9,471 | ||||||||||
Income from operations | 247 | 2,937 | 1,902 | ||||||||||
Income from discontinued operations, net of income tax | 184 | 2,185 | 1,359 | ||||||||||
of $68, $803, and $575 | |||||||||||||
Gain on sale of discontinued operations, net of income tax of $2,067 | 3,786 | — | — | ||||||||||
Net income from discontinued operations attributable to | 56 | 649 | 408 | ||||||||||
non-controlling interests | |||||||||||||
Net income from discontinued operations attributable to Heartland | 3,914 | 1,536 | 951 | ||||||||||
Quarterly_Consolidated_Results1
Quarterly Consolidated Results of Income (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||
The Company's unaudited quarterly results of operations for the years ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||
For the Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Total revenues | $ | 501,239 | $ | 546,624 | $ | 557,129 | $ | 530,380 | |||||||||
Costs of services | 428,624 | 469,763 | 480,386 | 456,933 | |||||||||||||
General and administrative expenses | 45,840 | 43,531 | 41,871 | 42,326 | |||||||||||||
Total expenses | 474,464 | 513,294 | 522,257 | 499,259 | |||||||||||||
Income from operations | 26,775 | 33,330 | 34,872 | 31,121 | |||||||||||||
Net income attributable to Heartland | 19,559 | 19,681 | 21,981 | 17,405 | |||||||||||||
Diluted earnings per share: | |||||||||||||||||
Income from continuing operations | $ | 0.41 | $ | 0.53 | $ | 0.58 | $ | 0.46 | |||||||||
Income from discontinued operations | 0.1 | — | — | — | |||||||||||||
Diluted earnings per share | 0.51 | 0.53 | 0.58 | 0.46 | |||||||||||||
For the Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Total revenues | $ | 467,576 | $ | 515,218 | $ | 530,677 | $ | 499,965 | |||||||||
Costs of services | 413,232 | 454,920 | 461,084 | 434,465 | |||||||||||||
General and administrative expenses | 31,549 | 31,309 | 36,787 | 40,289 | |||||||||||||
Total expenses | 444,781 | 486,229 | 497,871 | 474,754 | |||||||||||||
Income from operations | 22,795 | 28,989 | 32,806 | 25,211 | |||||||||||||
Net income attributable to Heartland | 13,754 | 17,801 | 19,380 | 14,954 | |||||||||||||
Diluted earnings per share: | |||||||||||||||||
Income from continuing operations | $ | 0.33 | $ | 0.43 | $ | 0.47 | $ | 0.37 | |||||||||
Income from discontinued operations | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||||
Diluted earnings per share | 0.34 | 0.44 | 0.48 | 0.38 | |||||||||||||
Organization_and_Operations_Ba
Organization and Operations (Bankcard Processing Volume) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Bank_Sponsorship_Agreements | Wells Fargo Bank, N.A. | The Bancorp Bank | Barclays Bank Delaware | Visa And MasterCard [Member] | Visa And MasterCard [Member] | Visa And MasterCard [Member] | Merchant Bankcard Processing [Member] | Common Stock | Common Stock | Common Stock | Leaf Acquisition, LLC [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||||
Wells Fargo Bank, N.A. | The Bancorp Bank | Barclays Bank Delaware | Visa And MasterCard [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||||||||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||||||||||
Organization and Operations Tables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Current Maturities | $0 | $102,001,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Parent's ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66.67% | ' | ' | ' | ' |
Sales revenue, minimum percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Days to identify alternative bank sponsor following terminated agreement | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of bank sponsorship agreements | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Automatic renewal period, sponsor bank agreement | ' | ' | ' | ' | '3 years | '1 year | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Written Notice of Non-renewal | ' | ' | ' | ' | '6 months | '6 months | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sponsor banks, bankcard processing volume percentage | ' | ' | ' | ' | ' | ' | ' | 67.00% | 22.00% | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital | ' | 85,500,000 | ' | 37,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving Credit Facility, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | 82,000,000 | 150,000,000 | 82,000,000 |
Repurchases of common stock | $49,625,000 | $103,774,000 | $16,414,000 | ' | ' | ' | ' | ' | ' | ' | ' | $50,301,000 | $103,359,000 | $16,828,000 | ' | ' | ' | ' | ' |
Common stock repurchased during period, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,486,783 | 3,634,044 | 778,889 | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
CPOS [Member] | Internal Revenue Service (IRS) [Member] | Information Technology Development Projects [Member] | Accrued Liabilities and Other Liabilities [Member] | Accrued Liabilities and Other Liabilities [Member] | Building [Member] | Building Improvements [Member] | Furniture and Fixtures [Member] | Furniture and Fixtures [Member] | Software Development [Member] | Software Development [Member] | Funding Advances [Member] | Funding Advances [Member] | Johnson City, Tennessee service center [Member] | Express Funds [Member] | School Link Technologies [Member] | School Link Technologies [Member] | School Link Technologies [Member] | School Link Technologies [Member] | Cash Equivalents [Member] | Fixed Income Funds [Member] | Processing System Intrusion [Member] | Processing System Intrusion [Member] | Prepaid Card Business [Member] | Discover [Member] | ||||||
CPOS [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||||||||||||||
Fair Value, Inputs, Level 1 [Member] | ||||||||||||||||||||||||||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Impairment Loss | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Income related to Sale of merchant Contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' |
Processing-related cash in transit and collateral | 32,100,000 | 31,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash used to fund merchant advances | ' | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to sponsor banks | 19,109,000 | 37,586,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,800,000 | 36,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Invoicing terms | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funds held for customers | 127,375,000 | 131,405,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 114,100,000 | ' | ' | ' | ' | ' |
Funds held for payroll customers, investments available for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,200,000 | ' | ' | ' | ' |
Amortization of capitalized customer acquisition costs, period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Signing bonus amount and amortization, adjustment period | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '39 years | '15 years | '3 years | '10 years | '3 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 190,978,000 | 168,062,000 | 94,255,000 | ' | 59,030,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,200,000 | ' | ' | ' | ' | ' | ' |
Deferred revenue | ' | ' | ' | ' | ' | ' | ' | ' | 18,200,000 | 13,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | ' | 7,300,000 | ' | ' | ' | ' | ' | ' | ' |
Unfavorable Processing Contract, Fair Value Adjustment | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of accrued liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Buy out of Relationship Managers and sales managers commissions, fixed multiple period | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Determination of accrued buyout liability, gross margin for prior period | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New SME merchant accrued buyout liability | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated vesting percentage, Relationship Managers and sales managers | 31.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business exit costs, pre-tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of intangible assets (excluding goodwill) | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other non-operating expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' |
Proceeds from sale of merchant bankcard processing contracts, pre-tax | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal fees, pre-tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Income tax expense | 46,450,000 | 40,691,000 | 26,551,000 | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Parent's ownership percentage | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefit from share-based compensation, financing activities | 11,596,000 | 5,954,000 | 3,454,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of interest rate derivatives | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative foreign currency translation gain (loss) | -45,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders' equity attributable to noncontrolling interest | 6,188,000 | 1,375,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovery of Accounts Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 day |
Impairment of Capitalized Customer Acquisition Costs | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Interest Rate Swaps) (Details) (USD $) | Jan. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Derivative [Line Items] | ' | ' | ' | ' | ' |
Notional amount of interest rate derivatives | $50,000 | $25,000 | $35,000 | ' | ' |
Fair value | ' | ' | ' | -411 | -817 |
Deferred tax benefit | ' | $153 | $313 | ' | ' |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 30, 2010 | Dec. 31, 2013 | Jan. 12, 2011 | Dec. 31, 2013 | Feb. 04, 2011 | Dec. 31, 2013 | Sep. 30, 2011 | Dec. 31, 2013 | Jun. 29, 2012 | Dec. 31, 2013 | Dec. 14, 2012 | Dec. 14, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 11, 2013 | Sep. 30, 2011 | Dec. 14, 2012 |
Lunchbox [Member] | Lunchbox [Member] | Comalex [Member] | Comalex [Member] | mySchoolBucks [Member] | mySchoolBucks [Member] | School Link Technologies [Member] | School Link Technologies [Member] | Lunch Byte Systems [Member] | Lunch Byte Systems [Member] | Educational Computer Systems, Inc. [Member] | Educational Computer Systems, Inc. [Member] | Ovation Payroll, Inc. [Member] | Ovation Payroll, Inc. [Member] | Leaf Acquisition, LLC [Member] | Unfavorable Processing Contract [Member] | Campus Solutions Segment [Member] | |||||
school | school | school | school | school | Minimum [Member] | State | Minimum [Member] | School Link Technologies [Member] | Minimum [Member] | ||||||||||||
Colleges_and_Universities | Client | Colleges_and_Universities | |||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate number of schools served | ' | ' | ' | ' | ' | 4,400 | ' | 3,700 | ' | 900 | ' | 10,000 | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' |
Cost of acquired entity, cash payment | ' | ' | ' | ' | $7,700,000 | ' | $6,100,000 | ' | $1,500,000 | ' | $15,600,000 | ' | $26,000,000 | ' | $37,600,000 | ' | $44,200,000 | ' | $14,500,000 | ' | ' |
Goodwill | 190,978,000 | 168,062,000 | 94,255,000 | 59,030,000 | 6,000,000 | ' | 4,900,000 | ' | 1,000,000 | ' | 25,200,000 | ' | 16,100,000 | ' | 32,500,000 | ' | 31,000,000 | ' | 20,600,000 | ' | ' |
Intangible assets acquired | ' | ' | ' | ' | 1,900,000 | ' | 1,800,000 | ' | 500,000 | ' | 4,300,000 | ' | 7,000,000 | ' | 10,500,000 | ' | 6,600,000 | ' | 6,900,000 | 11,100,000 | ' |
Net tangible assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | 6,600,000 | ' | ' | ' | ' |
Net tangible liabilities assumed | ' | ' | ' | ' | 200,000 | ' | 600,000 | ' | ' | ' | -2,800,000 | ' | ' | ' | -5,400,000 | ' | ' | ' | -6,200,000 | ' | ' |
Number of colleges and universities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800 | ' | ' | ' | ' | 2,000 |
Number of clients | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' |
Number of states in which company operates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48 | ' | ' | ' | ' |
Percentage of outstanding capital stock acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66.67% | ' | ' |
Acquisition of less than 100 percent, allocated to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,800,000 | ' | ' |
Acquisitions_Acquisitions_Weig
Acquisitions Acquisitions (Weighted Average Amortization Life) (Details) (Leaf Acquisition, LLC [Member]) | 0 Months Ended |
Sep. 11, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Weighted-average amortization life | '6 years 10 months 24 days |
Software | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Weighted-average amortization life | '7 years |
Patents | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Weighted-average amortization life | '5 years |
Receivables_Schedule_of_Accoun
Receivables (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total receivables, gross | $201,072,000 | $181,886,000 |
Less allowance for doubtful accounts | -1,032,000 | -1,438,000 |
Total receivables, net | 200,040,000 | 180,448,000 |
Due from employees | 1,100,000 | 400,000 |
Accounts receivable from merchants | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total receivables, gross | 172,147,000 | 160,702,000 |
Accounts receivable from bankcard networks | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total receivables, gross | 26,842,000 | 19,588,000 |
Accounts receivable from others | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total receivables, gross | $2,083,000 | $1,596,000 |
Receivables_Summary_of_Allowan
Receivables (Summary of Allowance for Doubtful Accounts Receivables) (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | ' |
Provision for doubtful receivables | ' | $195 | $1,043 | $2,423 |
Allowance for Doubtful Accounts | ' | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | ' |
Provision for doubtful receivables | ' | 180 | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | ' |
Beginning balance | 1,438 | 1,438 | 1,407 | 661 |
Additions to allowance | ' | ' | 818 | 2,234 |
Charges against allowance | -586 | ' | 787 | 1,488 |
Ending balance | ' | $1,032 | $1,438 | $1,407 |
Funds_Held_for_Customers_and_I2
Funds Held for Customers and Investments (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Funds Held for Payroll Customers: | ' | ' | ||
Cost | $127,111,000 | $131,161,000 | ||
Gross Unrealized Gains | 264,000 | 244,000 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 127,375,000 | 131,405,000 | ||
Investments: | ' | ' | ||
Other investment, Cost | 33,000 | ' | ||
Other investment, Estimated Fair Value | 33,000 | ' | ||
Certificates of deposit, term, maximum | '8 months | ' | ||
Amortized cost, marketable securities maturing within one year | 5,069,000 | ' | ||
Estimated fair value, marketable securities maturing within one year | 5,323,000 | ' | ||
Equity Securities [Member] | ' | ' | ||
Investments: | ' | ' | ||
Other equity investment | 4,000,000 | ' | ||
Conservative Income Bond fund [Member] | Available-for-sale securities | ' | ' | ||
Funds Held for Payroll Customers: | ' | ' | ||
Cost | 12,000,000 | ' | ||
Gross Unrealized Gains | 10,000 | ' | ||
Gross Unrealized Losses | 0 | ' | ||
Estimated Fair Value | 12,010,000 | ' | ||
Fixed income bond fund | Available-for-sale securities | ' | ' | ||
Funds Held for Payroll Customers: | ' | ' | ||
Cost | 968,000 | 968,000 | ||
Gross Unrealized Gains | 254,000 | 244,000 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 1,222,000 | 1,212,000 | ||
Cash held for payroll customers | ' | ' | ||
Funds Held for Payroll Customers: | ' | ' | ||
Cost | 88,376,000 | 110,334,000 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 88,376,000 | 110,334,000 | ||
Cash held for Campus Solutions customers | ' | ' | ||
Funds Held for Payroll Customers: | ' | ' | ||
Cost | 25,767,000 | 19,859,000 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 25,767,000 | 19,859,000 | ||
Investments held to maturity - Certificates of deposit | ' | ' | ||
Investments: | ' | ' | ||
Cost | ' | 1,199,000 | ||
Estimated Fair Value | 33,000 | [1] | 1,199,000 | [1] |
Investments held to maturity - Certificates of deposit | Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ||
Investments: | ' | ' | ||
Cost | 33,000 | [1] | 1,199,000 | [1] |
Investments held to maturity - Certificates of deposit | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ||
Investments: | ' | ' | ||
Cost | $33,000 | $1,199,000 | ||
[1] | Certificates of deposit have remaining term of 8 months. |
Capitalized_Customer_Acquisiti2
Capitalized Customer Acquisition Costs, Net (Capitalized Customer Acquisition Costs Net) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Capitalized Customer Acquisition Costs, Net [Abstract] | ' | ' | ' | ' |
Impairment net of signing bonus | $0 | $0 | ' | ' |
Signing bonus adjustments from estimated amounts to actual | -3,700,000 | -3,100,000 | -1,500,000 | ' |
Capitalized signing bonuses | 86,886,000 | 84,728,000 | ' | ' |
Less accumulated amortization | -43,775,000 | -42,941,000 | ' | ' |
Capitalized signing bonuses, net | 43,111,000 | 41,787,000 | ' | ' |
Capitalized customer deferred acquisition costs | 45,241,000 | 37,736,000 | ' | ' |
Less accumulated amortization | -27,325,000 | -23,098,000 | ' | ' |
Capitalized customer deferred acquisition costs, net | 17,916,000 | 14,638,000 | ' | ' |
Capitalized customer acquisition costs, net | $61,027,000 | $56,425,000 | $55,014,000 | $59,251,000 |
Capitalized_Customer_Acquisiti3
Capitalized Customer Acquisition Costs, Net (Capitalized Customer Acquisition Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Capitalized Customer Acquisition Costs, Net [Roll Forward] | ' | ' | ' |
Balance at beginning of period | $56,425,000 | $55,014,000 | $59,251,000 |
Capitalized signing bonuses, net | 29,091,000 | 29,320,000 | 29,035,000 |
Capitalized customer deferred acquisition costs | 21,159,000 | 17,216,000 | 14,276,000 |
Capitalized customer acquisition costs, additions | 50,250,000 | 46,536,000 | 43,311,000 |
Capitalized signing bonuses, net | -27,767,000 | -29,244,000 | -32,088,000 |
Capitalized customer deferred acquisition costs | -17,881,000 | -15,881,000 | -15,460,000 |
Capitalized customer acquisition costs, amortization expense | -45,648,000 | -45,125,000 | -47,548,000 |
Balance at end of period | 61,027,000 | 56,425,000 | 55,014,000 |
Signing bonus adjustments from estimated amounts to actual | -3,700,000 | -3,100,000 | -1,500,000 |
Write-off of fully amortized signing bonuses | 27,800,000 | 31,200,000 | 42,300,000 |
Write-off of fully amortized customer deferred acquisition costs | 13,654,000 | 16,045,000 | 16,421,000 |
Impairment net of signing bonus | $0 | $0 | ' |
Property_and_Equipment_Net_Pro
Property and Equipment, Net (Property, Plant and Equipment) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Property, plant and equipment, gross | $272,428,000 | $234,224,000 | ' |
Less accumulated depreciation | -125,040,000 | -109,193,000 | ' |
Property and equipment, net | 147,388,000 | 125,031,000 | ' |
Depreciation | 30,100,000 | 25,700,000 | 23,000,000 |
Computer hardware and software | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Property, plant and equipment, gross | 184,515,000 | 151,916,000 | ' |
Building | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Property, plant and equipment, gross | 54,910,000 | 54,359,000 | ' |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Property, plant and equipment, gross | 7,815,000 | 5,734,000 | ' |
Furniture, fixtures and equipment | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Property, plant and equipment, gross | 17,761,000 | 16,342,000 | ' |
Land | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Property, plant and equipment, gross | 7,427,000 | 5,873,000 | ' |
Internally developed projects | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Property and equipment, net | 42,377,000 | 34,100,000 | ' |
Assets not placed in service | 30,200,000 | 17,000,000 | ' |
Increase in capitalized costs | 38,400,000 | 26,700,000 | 22,600,000 |
Capitalized costs placed in service | $25,700,000 | $22,700,000 | $15,900,000 |
Property_and_Equipment_Net_Pro1
Property and Equipment, Net Property and Equipment, Net (Estimated Future Depreciation) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, net | $147,388 | $125,031 |
Capitalized costs, internally developed projects | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
2014 | 18,624 | ' |
2015 | 12,914 | ' |
2016 | 6,709 | ' |
2017 | 1,810 | ' |
2018 | 1,463 | ' |
Thereafter | 857 | ' |
Property and equipment, net | $42,377 | $34,100 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill (Schedule of Finite-Lived Intangible Assets by Major Class) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Assets | $79,533,000 | $74,295,000 | ' |
Accumulated Amortization | -29,676,000 | -20,701,000 | ' |
Net Asset | 49,857,000 | 53,594,000 | ' |
Finite-Lived intangible assets, amortization expense | 9,000,000 | 5,100,000 | 4,400,000 |
Customer relationships | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Assets | 49,814,000 | 52,125,000 | ' |
Accumulated Amortization | -14,107,000 | -8,318,000 | ' |
Net Asset | 35,707,000 | 43,807,000 | ' |
Merchant portfolio | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Assets | 4,095,000 | 3,345,000 | ' |
Accumulated Amortization | -2,703,000 | -2,316,000 | ' |
Net Asset | 1,392,000 | 1,029,000 | ' |
Weighted-average amortization life | '7 years | '7 years | ' |
Software | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Assets | 20,750,000 | 14,150,000 | ' |
Accumulated Amortization | -10,934,000 | -9,016,000 | ' |
Net Asset | 9,816,000 | 5,134,000 | ' |
Non-compete agreements | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Assets | 4,489,000 | 4,590,000 | ' |
Accumulated Amortization | -1,880,000 | -1,030,000 | ' |
Net Asset | 2,609,000 | 3,560,000 | ' |
Other | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Assets | 385,000 | 85,000 | ' |
Accumulated Amortization | -52,000 | -21,000 | ' |
Net Asset | $333,000 | $64,000 | ' |
Minimum [Member] | Customer relationships | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted-average amortization life | '3 years | '3 years | ' |
Minimum [Member] | Software | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted-average amortization life | '2 years | '3 years | ' |
Minimum [Member] | Non-compete agreements | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted-average amortization life | '3 years | '3 years | ' |
Minimum [Member] | Other | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted-average amortization life | '2 years | '2 years | ' |
Maximum [Member] | Customer relationships | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted-average amortization life | '18 years | '18 years | ' |
Maximum [Member] | Software | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted-average amortization life | '5 years | '5 years | ' |
Maximum [Member] | Non-compete agreements | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted-average amortization life | '5 years | '5 years | ' |
Maximum [Member] | Other | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted-average amortization life | '9 years | '9 years | ' |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ' | ' |
2013 | $8,499 | ' |
2014 | 7,954 | ' |
2015 | 6,952 | ' |
2016 | 5,628 | ' |
2017 | 4,398 | ' |
Thereafter | 16,426 | ' |
Net Asset | $49,857 | $53,594 |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill (Schedule of Goodwill) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill [Roll Forward] | ' | ' | ' | |
Beginning balance | $168,062 | $94,255 | $59,030 | |
Goodwill acquired during the period | 20,619 | 76,420 | 34,506 | |
Other | 2,297 | -2,613 | 719 | [1] |
Ending balance | 190,978 | 168,062 | 94,255 | |
Card Segment [Member] | ' | ' | ' | |
Goodwill [Roll Forward] | ' | ' | ' | |
Beginning balance | 43,701 | 43,701 | 43,701 | |
Goodwill acquired during the period | 20,619 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Ending balance | 64,320 | 43,701 | 43,701 | |
Payroll Segment [Member] | ' | ' | ' | |
Goodwill [Roll Forward] | ' | ' | ' | |
Beginning balance | 30,831 | 0 | 0 | |
Goodwill acquired during the period | 0 | 30,831 | 0 | |
Other | 187 | 0 | 0 | |
Ending balance | 31,018 | 30,831 | 0 | |
Heartland School Solutions [Member] | ' | ' | ' | |
Goodwill [Roll Forward] | ' | ' | ' | |
Beginning balance | 53,350 | 40,732 | 5,507 | |
Goodwill acquired during the period | 0 | 15,231 | 34,506 | |
Other | 0 | -2,613 | 719 | |
Ending balance | 53,350 | 53,350 | 40,732 | |
Campus Solutions Segment [Member] | ' | ' | ' | |
Goodwill [Roll Forward] | ' | ' | ' | |
Beginning balance | 33,679 | 3,321 | 3,321 | |
Goodwill acquired during the period | 0 | 30,358 | 0 | |
Other | 2,110 | 0 | 0 | |
Ending balance | 35,789 | 33,679 | 3,321 | |
All Other Segments [Member] | ' | ' | ' | |
Goodwill [Roll Forward] | ' | ' | ' | |
Beginning balance | 6,501 | 6,501 | 6,501 | |
Goodwill acquired during the period | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Ending balance | $6,501 | $6,501 | $6,501 | |
[1] | Reflects adjustments to preliminary allocations of purchase price within the measurement period. |
Intangible_Assets_and_Goodwill5
Intangible Assets and Goodwill (Goodwill Segment Percentage of Total Assets) (Details) | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 |
Card Segment [Member] | ' | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Portion of Total Assets That Are Goodwill | 11.30% | 9.40% | 9.70% |
Payroll Segment [Member] | ' | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Portion of Total Assets That Are Goodwill | 19.90% | 18.50% | 0.00% |
Heartland School Solutions [Member] | ' | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Portion of Total Assets That Are Goodwill | 67.90% | 74.90% | 77.60% |
Campus Solutions Segment [Member] | ' | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Portion of Total Assets That Are Goodwill | 43.80% | 43.60% | 48.70% |
All Other Segments [Member] | ' | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Portion of Total Assets That Are Goodwill | 37.70% | 20.00% | 20.30% |
Processing_Liabilities_Details
Processing Liabilities (Details) (USD $) | 4 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
SME [Member] | SME [Member] | SME [Member] | SME [Member] | SME [Member] | Merchant bankcard processing | Merchant bankcard processing | Merchant deposits | Merchant deposits | Loss reserves | Loss reserves | ||||
Processing Liabilities and Loss Reserves [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Processing liabilities | $130,871,000 | $95,273,000 | ' | ' | ' | ' | ' | ' | $121,143,000 | $86,882,000 | $8,223,000 | $6,436,000 | $1,505,000 | $1,955,000 |
Letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | 260,000 | 100,000 | ' | ' | ' | ' |
Chargebacks, card brand networks, period | ' | ' | ' | ' | ' | '4 months | ' | ' | ' | ' | ' | ' | ' | ' |
Processing volume | ' | ' | ' | 24,400,000,000 | 23,500,000,000 | 74,578,500,000 | 71,724,000,000 | 67,499,200,000 | ' | ' | ' | ' | ' | ' |
Bank chargebacks | 11,700,000 | 11,800,000 | 12,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Merchant credit losses | ' | ' | ' | ' | ' | $3,100,000 | $2,000,000 | $5,100,000 | ' | ' | ' | ' | ' | ' |
Processing_Liabilities_Schedul
Processing Liabilities (Schedule Of Credit And Fraud Loss Reserve) (Details) (USD $) | 4 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Loss reserves | Loss reserves | Loss reserves | Payroll [Member] | Payroll [Member] | Payroll [Member] | ||||
Loss reserves | Loss reserves | Loss reserves | |||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | $1,955,000 | $1,957,000 | $1,625,000 | ' | ' | ' |
Additions to reserve | ' | ' | ' | 2,738,000 | 2,123,000 | 5,658,000 | ' | ' | ' |
Charges against reserve | ' | ' | ' | -3,188,000 | 2,125,000 | 5,326,000 | -111,000 | -93,000 | -223,000 |
Ending balance | ' | ' | ' | 1,505,000 | 1,955,000 | 1,957,000 | ' | ' | ' |
Bank chargebacks | $11,700,000 | $11,800,000 | $12,200,000 | ' | ' | ' | ' | ' | ' |
Credit_Facilities_Schedule_of_
Credit Facilities (Schedule of Maturities of Long-term Debt) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
Oct. 23, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 23, 2013 | Dec. 31, 2012 | Oct. 23, 2013 | Oct. 23, 2013 | Oct. 23, 2013 | Oct. 23, 2013 | Oct. 23, 2013 | Oct. 23, 2013 | Oct. 23, 2013 | |
Federal Funds Rate [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | Prior Revolving Credit Facility [Member] | Prior Revolving Credit Facility [Member] | Prior Term Credit Facility [Member] | Fair Value, Inputs, Level 2 [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||||
Fair Value, Measurements, Nonrecurring [Member] | Subsequent To Administrative Agent Approval [Member] | Letter of Credit [Member] | Swing Line Loans [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||||
Prior Term Credit Facility [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||||||||||||||||
Line of Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $350,000,000 | $500,000,000 | $35,000,000 | $35,000,000 | ' |
Commitment Increase Agreement, additional borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' |
Quarterly repayments of principal, for fiscal years ended 2011 and 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' |
Quarterly repayments of principal, for fiscal years ended 2013 and 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' | ' | ' | ' |
Total principal payments due under Term Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91,000,000 | 82,000,000 | ' | 55,000,000 | ' | ' | ' | ' | 150,000,000 |
Compliance with covenants, expected term | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, description of variable rate basis | ' | 'interest rates equal to one, two, three or six month adjusted LIBOR rates | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjusted monthly LIBOR rates | ' | ' | ' | ' | '1 month | '2 months | ' | '3 months | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement, basis spread on variable rate | ' | ' | ' | 0.50% | ' | ' | 1.00% | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement, weighted average interest rate | ' | 1.70% | 1.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement, fees and direct costs | $2,600,000 | ' | $3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued_Buyout_Liability_Summa
Accrued Buyout Liability (Summary of Accrued Buyout Liability) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Accrued Buyout Liability [Line Items] | ' | ' | ' | ' |
Accrued buyout liability, total | $39,379,000 | $35,410,000 | $31,658,000 | $28,810,000 |
Less current portion | -13,943,000 | -10,478,000 | ' | ' |
Long-term portion of accrued buyout liability | 25,436,000 | 24,932,000 | ' | ' |
Estimated vesting percentage, Relationship Managers and sales managers | 31.00% | ' | ' | ' |
Hypothetical increase to vesting percentage, Relationship Managers and sales managers | 5.00% | ' | ' | ' |
Hypothetical vesting percentage, Relationship Managers and sales managers | 36.00% | ' | ' | ' |
Hypothetical increase to accrued buyout liability | 100,000 | 100,000 | ' | ' |
Payouts of accrued buyout liability | -13,651,000 | -11,886,000 | -10,380,000 | ' |
Accrued Buyout Liability [Member] | ' | ' | ' | ' |
Accrued Buyout Liability [Line Items] | ' | ' | ' | ' |
Accrued buyout liability, total | 39,379,000 | 35,410,000 | ' | ' |
Less current portion | -13,943,000 | -10,478,000 | ' | ' |
Long-term portion of accrued buyout liability | 25,436,000 | 24,932,000 | ' | ' |
Accrued Buyout Liability [Member] | Vested Relationship Managers and sales managers [Member] | ' | ' | ' | ' |
Accrued Buyout Liability [Line Items] | ' | ' | ' | ' |
Accrued buyout liability, total | 38,082,000 | 33,926,000 | ' | ' |
Accrued Buyout Liability [Member] | Unvested Relationship Managers and sales managers [Member] | ' | ' | ' | ' |
Accrued Buyout Liability [Line Items] | ' | ' | ' | ' |
Accrued buyout liability, total | $1,297,000 | $1,484,000 | ' | ' |
Accrued_Buyout_Liability_Summa1
Accrued Buyout Liability (Summary of Activity in Accrued Buyout Liability) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accrued Buyout Liability [Roll Forward] | ' | ' | ' |
Beginning balance | $35,410 | $31,658 | $28,810 |
Increase in settlement obligation, net | 17,620 | 15,638 | 13,228 |
Buyouts | -13,651 | -11,886 | -10,380 |
Ending balance | $39,379 | $35,410 | $31,658 |
Stockholders_Equity_Schedule_O
Stockholders' Equity (Schedule Of Dividends Paid) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 14, 2013 | Sep. 14, 2013 | Jun. 15, 2013 | Mar. 15, 2013 | Dec. 14, 2012 | Sep. 14, 2012 | Jun. 15, 2012 | Mar. 15, 2012 | Dec. 15, 2011 | Sep. 15, 2011 | Jun. 15, 2011 | Mar. 15, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Feb. 05, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 21, 2011 | Dec. 31, 2012 | Jul. 27, 2013 | Dec. 31, 2012 | Nov. 03, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 8-May-13 | Dec. 31, 2013 | |
Subsequent Event [Member] | Common Stock | Common Stock | Common Stock | October 21, 2011 Program [Member] | October 21, 2011 Program [Member] | July 27, 2012 Program [Member] | July 27, 2012 Program [Member] | November 2, 2012 Program [Member] | November 2, 2012 Program [Member] | November 2, 2012 Program [Member] | May 8, 2013 Program [Member] | May 8, 2013 Program [Member] | |||||||||||||||||
Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | |||||||||||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program, authorized purchase amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | $50,000,000 | ' | $50,000,000 | ' | ' | $75,000,000 | ' |
Common stock repurchased during period, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,486,783 | 3,634,044 | 778,889 | ' | 1,157,440 | ' | 1,760,804 | ' | 952,183 | 715,800 | ' | 534,600 |
Repurchases of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,625,000 | 103,774,000 | 16,414,000 | ' | ' | 50,301,000 | 103,359,000 | 16,828,000 | ' | 33,172,000 | ' | 50,000,000 | ' | 29,813,000 | 20,187,000 | ' | 20,488,000 |
Treasury stock acquired, average cost per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $33.83 | $28.44 | $21.61 | ' | $28.66 | ' | $28.40 | ' | $31.31 | $28.20 | ' | $38.32 |
Stock repurchase program, remaining authorized repurchase amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $54,512,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount Paid Per Common Share | $0.07 | $0.07 | $0.07 | $0.07 | $0.06 | $0.06 | $0.06 | $0.06 | $0.04 | $0.04 | $0.04 | $0.04 | $0.28 | ' | $0.24 | $0.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current | ' | ' | ' |
Federal | $31,326 | $32,155 | $23,949 |
State | 4,810 | 3,481 | 740 |
Deferred | ' | ' | ' |
Federal | 8,766 | 3,737 | -435 |
State | 1,548 | 1,318 | 2,297 |
Total provision for income taxes from continuing operations | $46,450 | $40,691 | $26,551 |
Income_Taxes_Schedule_of_Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation, Continuing Operations) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Effective Income Tax Rate, Tax Rate Reconciliation | ' | ' | ' |
U.S. federal income tax at statutory rate | 35.00% | 35.00% | 35.00% |
U.S. state and local income taxes, net | 3.26% | 2.93% | 2.88% |
Nondeductible expenses | 0.52% | 0.46% | 0.37% |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Percent | -1.19% | ' | ' |
Valuation Allowance | 0.60% | 0.00% | -0.01% |
U.S. tax on foreign income, net | 0.00% | 0.38% | 0.00% |
Other | 0.34% | -0.03% | -0.06% |
Provision for income taxes from continuing operations (percent) | 38.53% | 38.74% | 38.18% |
Income Tax Expense (Benefit), Income Tax Reconciliation | ' | ' | ' |
U.S. federal income tax at statutory rate | $42,193,000 | $36,765,000 | $24,338,000 |
U.S. state and local income taxes, net | 3,932,000 | 3,065,000 | 2,001,000 |
Nondeductible expenses | 621,000 | 492,000 | 261,000 |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | -1,435,000 | ' | ' |
Valuation Allowance | 724,000 | 0 | -5,000 |
U.S. tax on foreign income, net | 0 | 400,000 | 0 |
Other | 415,000 | -31,000 | -44,000 |
Total provision for income taxes from continuing operations | 46,450,000 | 40,691,000 | 26,551,000 |
Liability for uncertain tax positions | 5,633,000 | 3,069,000 | 1,819,000 |
Unrecognized tax benefits that would impact effective tax rate | 3,800,000 | 2,000,000 | 1,100,000 |
Liability for uncertain tax positions, current | 441,000 | 281,000 | 216,000 |
Uncertain tax positions, interest expense | 160,000 | 65,000 | 48,000 |
Excess tax benefit from share-based compensation, financing activities | $11,596,000 | $5,954,000 | $3,454,000 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits Reconciliation) (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Leaf Acquisition, LLC [Member] | CPOS [Member] | CPOS [Member] | ||||
Internal Revenue Service (IRS) [Member] | ||||||
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' |
Income tax expense net of foreign tax credits | ' | ' | ' | ' | ' | $400,000 |
Parent's ownership percentage | ' | ' | ' | 66.67% | 70.00% | ' |
Liability for uncertain tax positions | 5,633,000 | 3,069,000 | 1,819,000 | ' | ' | ' |
Unrecognized tax benefits that would impact effective tax rate | 3,800,000 | 2,000,000 | 1,100,000 | ' | ' | ' |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at January 1, | 3,069,000 | 1,819,000 | 1,309,000 | ' | ' | ' |
Additions based on tax positions related to the current year | 2,681,000 | 1,429,000 | 637,000 | ' | ' | ' |
Lapse of statute of limitations | -117,000 | -32,000 | -127,000 | ' | ' | ' |
Settlements | 0 | -147,000 | 0 | ' | ' | ' |
Balance at December 31, | 5,633,000 | 3,069,000 | 1,819,000 | ' | ' | ' |
Liability for uncertain tax positions, current | 441,000 | 281,000 | 216,000 | ' | ' | ' |
Uncertain tax positions, interest expense | 160,000 | 65,000 | 48,000 | ' | ' | ' |
Excess tax benefit from share-based compensation, financing activities | $11,596,000 | $5,954,000 | $3,454,000 | ' | ' | ' |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Merchant contract costs | $8,542 | $8,165 |
Loss reserve and accounts receivable allowance | 859 | 1,189 |
Share-based compensation | 8,154 | 8,702 |
FIN No. 48 deferred tax reserve-state tax | 1,968 | 1,185 |
Other comprehensive income | 170 | 312 |
Net operating loss carry-forward | 11,034 | 8,333 |
Reserve for litigation | 591 | 605 |
State net operating loss carry-forwards | 24 | 30 |
Reserve for processor incentive | 44 | 217 |
Deferred compensation | 2,632 | 2,950 |
Deferred state tax assets | 1,487 | 1,141 |
Other | 1,229 | 799 |
Deferred tax assets | 36,734 | 33,628 |
Less valuation allowance | -2,906 | -158 |
Net deferred tax assets | 33,828 | 33,470 |
Deferred tax liabilities: | ' | ' |
Capitalized signing bonus | 17,173 | 16,068 |
Software development | 27,419 | 18,970 |
Unearned rent | -240 | 227 |
Property and equipment | 3,597 | 3,916 |
Goodwill | 12,591 | 9,044 |
Deferred compensation | 0 | 400 |
Intangibles | 4,340 | 4,002 |
Deferred tax liabilities | 64,880 | 52,627 |
Net deferred tax liabilities | -31,052 | -19,157 |
Less current deferred tax asset, net | 9,548 | 10,475 |
Net deferred tax liabilities - non-current portion | -40,600 | -29,632 |
Ovation Payroll, Inc. [Member] | ' | ' |
Deferred tax liabilities: | ' | ' |
Operating loss carryforwards, state | ' | 23,200 |
State and Local Jurisdiction [Member] | ' | ' |
Deferred tax liabilities: | ' | ' |
Operating loss carryforwards, state | $307 | ' |
Stock_Incentive_Plans_Stock_In
Stock Incentive Plans Stock Incentive Plans (Schedule of Employee Service Share-based Compensation Allocation of Recognized Period Costs) (Details) (USD $) | 12 Months Ended | 24 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 |
Employee_share-based_plans | ||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Number of employee share-based plans | 2 | ' | ' | ' |
Compensation expense recognized on share-based plans before income tax benefit | $12,838 | $14,187 | $9,548 | ' |
Related income tax benefit recognized in the income statement | 4,981 | 5,458 | 3,635 | ' |
Cash received from stock option exercises | 14,174 | 18,303 | 9,685 | ' |
Excess tax benefit recorded for tax deductions resulting from the exercise of stock options | 11,596 | 5,954 | 3,454 | ' |
Tax benefit realized as reductions of estimated tax payments during the period | $8,587 | $4,220 | $2,954 | ' |
Stock options, grants in period, weighted average grant date fair value | ' | $9.36 | $7.95 | ' |
Stock options, grants in period | 0 | ' | ' | 1,297,064 |
Stock_Incentive_Plans_Stock_In1
Stock Incentive Plans Stock Incentive Plans (Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2011 | Dec. 31, 2010 | 31-May-10 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | 55.00% | 55.00% | ' |
Expected life | '3 years 9 months 1 day | '3 years 7 months 26 days | ' |
Expected dividends | 1.00% | 0.80% | ' |
Risk-free interest rate | 0.51% | 0.55% | ' |
Stock options, granted | 7,700,000 | ' | 7,700,000 |
Stock_Incentive_Plans_Stock_In2
Stock Incentive Plans Stock Incentive Plans (Summary of Future Diluted Earnings Per Share Target Associated With Restricted Share Units) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 24 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-10 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Y | Y | Restricted Stock Units Performance Based [Member] | Restricted Stock Units Performance Based [Member] | Relative Total Shareholder Return Restricted Share Units (TSRs) [Member] | Relative Total Shareholder Return Restricted Share Units (TSRs) [Member] | Relative Total Shareholder Return Restricted Share Units (TSRs) [Member] | 2000 Equity Incentive Plan [Member] | 2000 Equity Incentive Plan [Member] | 2000 Equity Incentive Plan [Member] | 2000 Equity Incentive Plan [Member] | Absolute Relative Total Shareholder Return Restricted Share Units (ATSRs) [Member] | 2008 Equity Incentive Plan [Member] | 2008 Equity Incentive Plan [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Two-year period ending December 31, 2013 [Member] | Two-year period ending December 31, 2013 [Member] | Two-year period ending December 31, 2014 [Member] | Two-year period ending December 31, 2014 [Member] | Three Year Period Ending December 31, 2016 [Member] | Three Year Term [Member] | Four Year Term [Member] | |||||
4th Quarter 2011 [Member] | 4th Quarter 2011 [Member] | Peer | Peer | Percentile | Relative Total Shareholder Return Restricted Share Units (TSRs) [Member] | Relative Total Shareholder Return Restricted Share Units (TSRs) [Member] | Absolute Relative Total Shareholder Return Restricted Share Units (ATSRs) [Member] | Relative Total Shareholder Return Restricted Share Units (TSRs) [Member] | Relative Total Shareholder Return Restricted Share Units (TSRs) [Member] | Absolute Relative Total Shareholder Return Restricted Share Units (ATSRs) [Member] | Absolute Relative Total Shareholder Return Restricted Share Units (ATSRs) [Member] | Absolute Relative Total Shareholder Return Restricted Share Units (ATSRs) [Member] | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted share units, vesting rate in one year | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based payment awards, shares authorized | ' | ' | ' | ' | 7,700,000 | 7,700,000 | ' | 164,808 | 57,598 | 72,345 | 57,598 | ' | ' | ' | ' | 59,533 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted share units, vesting percentage rate in year two | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compound annual growth rate, diluted earnings per share, target | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Growth rate Diluted Earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' |
Restricted Share Units, Increase for Achieving Target | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.20% | ' | ' |
Compound annual growth rate, increase over target | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' |
Diluted earnings per share growth rate, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | '2 years | '3 years | ' | ' |
Growth rate Achieved Diluted Earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' |
Restricted share units, increase for exceeding CAGR target | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.08% | ' | ' | ' | ' |
Restricted share units, maximum number of shares authorized to award, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | 125.00% | ' | 150.00% | ' | ' |
Diluted Earnings Per Share Growth Rate, Decrease Below Target | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' |
Compound annual growth rate, decrease below target, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' |
Restricted share units, decrease for falling below CAGR target, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.31% | ' | ' | ' | ' |
Compound annual growth rate, percentage of target required to award shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67.00% | ' | ' | ' | ' |
Restricted Share Units, Awards if CAGR Target Missed by 67% or More | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Peers | ' | ' | ' | ' | ' | ' | ' | ' | 91 | 86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | 200.00% | 225.00% | 200.00% | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Average Closing Price, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shareholder Return, Peer Group Percentile | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total shareholder return, target percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.00% | 46.00% |
Total shareholder return, base term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years |
Share-based payment awards, nonvested, total compensation cost not yet recognized | $28.20 | ' | $28.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based payment awards, outstanding, weighted average remaining contractual term (in years) | 2.2 | ' | 2.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, grants in period | ' | ' | 0 | ' | 1,297,064 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted share units, grants in period | ' | ' | ' | ' | 881,989 | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance-based restricted share units, grants in period | ' | ' | ' | ' | 817,957 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based payment award, award vesting period | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based payment awards, shares available for grant | ' | ' | ' | ' | 6,121,399 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Period From Grant Date to Expiration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, exercises in period, total intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.1 | 4 | 6.4 | ' | ' | 27.9 | 22.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted share units, vested in period, total intrinsic value | ' | ' | $17 | $5.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,571 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Share Units, Decrease for Falling Below Target | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' |
Growth Rate, Percentage of Target Required to Award Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' |
Restricted Share Units, Awards if CAGR Target Missed by 50% or More | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Incentive_Plans_Stock_In3
Stock Incentive Plans Stock Incentive Plans (Schedule of Share-based Compensation, Activity) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | 31-May-10 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Restricted Share Units, Awards if CAGR Target Missed by 50% or More | 0 | ' | ' | ' | ' | ' | ' |
Restricted Share Units, Awards if CAGR Target Missed by 67% or More | ' | 0 | ' | ' | ' | ' | ' |
Share-based payment awards, shares authorized | ' | ' | ' | ' | 7,700,000 | 7,700,000 | 7,700,000 |
Proceeds from exercise of stock options | ' | ' | $14,174,000 | $18,303,000 | $9,685,000 | ' | ' |
Excess tax benefits on options exercised | ' | ' | 11,596,000 | 5,954,000 | 3,454,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock options, grants in period | ' | ' | 0 | ' | ' | 1,297,064 | ' |
Stock options, exercisable | ' | 808,962 | ' | 808,962 | 2,264,769 | 2,264,769 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Restricted share units, grants in period | ' | ' | ' | ' | ' | 881,989 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Non-Option Equity Instruments, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock options and restricted share units, outstanding | ' | ' | 5,694,823 | 7,069,167 | 8,334,276 | ' | ' |
Stock options and restricted share units, grants in period | ' | ' | 491,542 | 596,120 | 404,100 | ' | ' |
Stock options and restricted share units, exercised/vested in period | ' | ' | -1,767,050 | -1,697,429 | -1,246,454 | ' | ' |
Stock options and restricted share units, forfeited/cancelled in period | ' | ' | -2,381,669 | -273,035 | -422,755 | ' | ' |
Stock options and restricted share units, outstanding | 2,037,646 | 5,694,823 | 2,037,646 | 5,694,823 | 7,069,167 | 7,069,167 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock options, exercisable, weighted average exercise price | ' | $12.16 | ' | $12.16 | $16.67 | $16.67 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock options and restricted share units, outstanding, weighted average exercise grant price | ' | ' | $18.65 | $16.39 | $15.17 | ' | ' |
Stock options and restricted share units, grants in period, weighted average exercise grant price | ' | ' | $42.50 | $29.62 | $21.91 | ' | ' |
Stock options and restricted share units, exercised in period, weighted average exercise grant price | ' | ' | $13.34 | $12.29 | $8.72 | ' | ' |
Stock options and restricted share units, forfeited/cancelled in period, weighted average exercise grant price | ' | ' | $21.92 | $22.15 | $20.04 | ' | ' |
Stock options and restricted share units, outstanding, weighted average exercise grant price | $25.29 | $18.65 | $25.29 | $18.65 | $16.39 | $16.39 | ' |
Stock options outstanding, weighted average remaining contractual term | ' | ' | '2 years 1 month 6 days | ' | ' | ' | ' |
Stock options and restricted share units, outstanding, intrinsic value | 100,200,000 | ' | 100,200,000 | ' | ' | ' | ' |
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock options, outstanding | ' | ' | 4,230,187 | 5,966,065 | 7,454,166 | ' | ' |
Stock options, grants in period | ' | ' | 0 | 27,496 | 31,568 | ' | ' |
Stock options, exercised/vested in period | ' | ' | 1,264,825 | 1,522,429 | 1,133,974 | ' | ' |
Stock options, forfeited/cancelled in period | ' | ' | -2,283,218 | -240,945 | -385,695 | ' | ' |
Stock options, outstanding | 682,144 | 4,230,187 | 682,144 | 4,230,187 | 5,966,065 | 5,966,065 | ' |
Stock options, exercisable | 394,252 | 808,962 | 394,252 | 808,962 | 2,264,769 | 2,264,769 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock options, outstanding, weighted average exercise price | ' | ' | $17.39 | $16.26 | $15.28 | ' | ' |
Stock options, grants in period, weighted average exercise price | ' | ' | $0 | $24.28 | $20.59 | ' | ' |
Stock options, exercised/vested in period, weighted average exercise price | ' | ' | $11.21 | $12.03 | $8.54 | ' | ' |
Stock options, forfeited/cancelled in period, weighted average exercise price | ' | ' | $21.84 | $22.20 | $20.39 | ' | ' |
Stock options, outstanding, weighted average exercise price | $14.26 | $17.39 | $14.26 | $17.39 | $16.26 | $16.26 | ' |
Stock options, exercisable, weighted average exercise price | $13.20 | $12.16 | $13.20 | $12.16 | $16.67 | $16.67 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock options outstanding, weighted average remaining contractual term | ' | ' | '1 year 4 months 24 days | ' | ' | ' | ' |
Share-based payment awards, intrinsic value | $14,400,000 | ' | $14,400,000 | ' | ' | ' | ' |
Stock options, exercisable, weighted average remaining contractual term | ' | ' | '1 year 2 months 12 days | ' | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Restricted share units, outstanding | ' | ' | 1,464,636 | 1,103,102 | 880,110 | ' | ' |
Restricted share units, grants in period | ' | ' | 491,542 | 568,624 | 372,532 | ' | ' |
Restricted share units, exercised/vested in period | ' | ' | -502,225 | -175,000 | -112,480 | ' | ' |
Restricted share units, forfeited/cancelled in period | ' | ' | -98,451 | -32,090 | -37,060 | ' | ' |
Restricted share units, outstanding | 1,355,502 | 1,464,636 | 1,355,502 | 1,464,636 | 1,103,102 | 1,103,102 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Restricted share units, outstanding, weighted average grant date fair value | ' | ' | $22.31 | $17.11 | $14.23 | ' | ' |
Restricted share units, grants in period, weighted average grant date fair value | ' | ' | $42.50 | $29.88 | $22.02 | ' | ' |
Restricted share units, exercised/vested in period, weighted Average grant date fair value | ' | ' | $18.72 | $14.57 | $10.59 | ' | ' |
Restricted share units, forfeited/cancelled in period, weighted average grant date fair value | ' | ' | $23.88 | $21.78 | $16.35 | ' | ' |
Restricted share units, outstanding, weighted average grant date fair value | $30.83 | $22.31 | $30.83 | $22.31 | $17.11 | $17.11 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock options outstanding, weighted average remaining contractual term | ' | ' | '2 years 4 months 24 days | ' | ' | ' | ' |
4th Quarter 2011 [Member] | Restricted Stock Units Performance Based [Member] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Share-based payment awards, shares authorized | ' | ' | ' | ' | 164,808 | 164,808 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Restricted share units, vesting rate in one year | ' | ' | 50.00% | ' | ' | ' | ' |
Restricted share units, vesting percentage rate in year two | ' | ' | 50.00% | ' | ' | ' | ' |
4th Quarter 2012 [Member] | Restricted Stock Units Performance Based [Member] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Share-based payment awards, shares authorized | ' | 72,004 | ' | 72,004 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Restricted share units, vesting percentage rate in year two | ' | ' | 50.00% | ' | ' | ' | ' |
Restricted share units, vesting percentage rate in year three | ' | ' | 50.00% | ' | ' | ' | ' |
4th Quarter 2013 [Member] | Restricted Stock Units Performance Based [Member] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Share-based payment awards, shares authorized | 115,223 | ' | 115,223 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Restricted share units, vesting percentage rate in year four | ' | ' | 50.00% | ' | ' | ' | ' |
Share-based Payment Award, Equity Instrument Other Than Options, Vesting Rate In five Years | ' | ' | 50.00% | ' | ' | ' | ' |
Stock_Incentive_Plans_Stock_In4
Stock Incentive Plans Stock Incentive Plans (Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Y | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Restricted Share Units, Outstanding, Weighted Average Remaining Contractual Term | 2.2 | ' | ' | ' |
Stock options and restricted share units, outstanding | 2,037,646 | 5,694,823 | 7,069,167 | 8,334,276 |
Stock options, exercisable | ' | 808,962 | 2,264,769 | ' |
Stock options and restricted share units, exercisable | 394,252 | ' | ' | ' |
Stock options outstanding, weighted average remaining contractual term | '2 years 1 month 6 days | ' | ' | ' |
$6.25 to $12.16 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Shares authorized under stock option plans, exercise price range, lower range limit | 6.25 | ' | ' | ' |
Shares authorized under stock option plans, exercise price range, upper range limit | 12.16 | ' | ' | ' |
Stock options and restricted share units, outstanding | 164,371 | ' | ' | ' |
Stock options and restricted share units, exercisable | 164,371 | ' | ' | ' |
$15.22 to $24.28 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Shares authorized under stock option plans, exercise price range, lower range limit | 15.22 | ' | ' | ' |
Shares authorized under stock option plans, exercise price range, upper range limit | 24.28 | ' | ' | ' |
Stock options and restricted share units, outstanding | 975,488 | ' | ' | ' |
Stock options and restricted share units, exercisable | 229,881 | ' | ' | ' |
$29.57 to $44.62 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Shares authorized under stock option plans, exercise price range, lower range limit | 29.57 | ' | ' | ' |
Shares authorized under stock option plans, exercise price range, upper range limit | 44.62 | ' | ' | ' |
Stock options and restricted share units, outstanding | 897,787 | ' | ' | ' |
Stock options and restricted share units, exercisable | 0 | ' | ' | ' |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock options, outstanding | 682,144 | 4,230,187 | 5,966,065 | 7,454,166 |
Stock options, exercisable | 394,252 | 808,962 | 2,264,769 | ' |
Stock options outstanding, weighted average remaining contractual term | '1 year 4 months 24 days | ' | ' | ' |
Stock options, exercisable, weighted average remaining contractual term | '1 year 2 months 12 days | ' | ' | ' |
Stock Options [Member] | $6.25 to $12.16 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock options, outstanding | 164,371 | ' | ' | ' |
Stock options, exercisable | 164,371 | ' | ' | ' |
Stock options outstanding, weighted average remaining contractual term | '7 months 6 days | ' | ' | ' |
Stock Options [Member] | $15.22 to $24.28 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock options, outstanding | 517,773 | ' | ' | ' |
Stock options, exercisable | 229,881 | ' | ' | ' |
Stock options outstanding, weighted average remaining contractual term | '1 year 8 months 12 days | ' | ' | ' |
Stock Options [Member] | $29.57 to $44.62 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock options, outstanding | 0 | ' | ' | ' |
Stock options, exercisable | 0 | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Restricted share units, outstanding | 1,355,502 | 1,464,636 | 1,103,102 | 880,110 |
Restricted share units, exercisable | 0 | ' | ' | ' |
Stock options outstanding, weighted average remaining contractual term | '2 years 4 months 24 days | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | $6.25 to $12.16 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Restricted share units, outstanding | 0 | ' | ' | ' |
Restricted share units, exercisable | 0 | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | $15.22 to $24.28 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Restricted share units, outstanding | 457,715 | ' | ' | ' |
Restricted share units, exercisable | 0 | ' | ' | ' |
Stock options outstanding, weighted average remaining contractual term | '1 year 2 months 12 days | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | $29.57 to $44.62 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Restricted share units, outstanding | 897,787 | ' | ' | ' |
Restricted share units, exercisable | 0 | ' | ' | ' |
Stock options outstanding, weighted average remaining contractual term | '3 years 2 months 12 days | ' | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||||
Conservative Income Bond fund [Member] | Fixed Income Funds [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Fixed Income Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Term Credit Facility [Member] | Certificates of Deposit [Member] | Certificates of Deposit [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||||||||
Conservative Income Bond fund [Member] | Fixed Income Funds [Member] | Interest Rate Swap [Member] | Fixed Income Funds [Member] | Fixed Income Funds [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Certificates of Deposit [Member] | Term Credit Facility [Member] | Certificates of Deposit [Member] | Certificates of Deposit [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Transfers between Level 1 and Level 2 categories | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Certificates of deposit | ' | 1,199,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,000 | [1] | 1,199,000 | [1] | ' | 0 | ' | ' | ' | 33,000 | 1,199,000 | ' | ' | ' | ' | ' | ' | |
Bonds | ' | ' | ' | ' | 12,010,000 | 1,222,000 | ' | ' | 1,212,000 | [2] | ' | ' | 12,010,000 | 1,222,000 | ' | 1,212,000 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total assets | ' | ' | 13,232,000 | 1,212,000 | ' | ' | ' | ' | ' | 13,232,000 | 1,212,000 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 33,000 | 1,199,000 | ' | ' | ' | 0 | ' | 33,000 | 1,199,000 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | |||
Liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest rate swaps | ' | ' | ' | ' | ' | ' | 411,000 | 817,000 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 411,000 | 817,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,000,000 | ' | ' | ' | ' | ' | ' | 70,000,000 | ' | ' | ' | 150,000,000 | 82,000,000 | 0 | 150,000,000 | 82,000,000 | |||
Total Liabilities | ' | ' | $411,000 | $817,000 | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | $411,000 | $817,000 | ' | ' | ' | $150,000,000 | $152,000,000 | ' | ' | ' | $0 | ' | $150,000,000 | $152,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | Certificates of deposit have remaining term of 8 months. | ||||||||||||||||||||||||||||||||||||||||
[2] | amounts included in Funds held for customers on the Consolidated Balance Sheet |
Employee_Benefit_Plan_Narrativ
Employee Benefit Plan (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Benefit Plan [Abstract] | ' | ' | ' |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $2.50 | $1.90 | $1.60 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) (USD $) | 9 Months Ended | 12 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | ||
Maximum [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' | |
2014 | ' | ' | ' | $10,410,000 | ' | |
2015 | ' | ' | ' | 7,747,000 | ' | |
2016 | ' | ' | ' | 5,479,000 | ' | |
2017 | ' | ' | ' | 3,627,000 | ' | |
2018 | ' | ' | ' | 3,624,000 | ' | |
Thereafter | ' | ' | ' | 8,020,000 | ' | |
Total future minimum lease payments | ' | ' | ' | 38,907,000 | [1] | ' |
Leases, Operating [Abstract] | ' | ' | ' | ' | ' | |
Term of operating lease agreements | ' | ' | ' | ' | '10 years | |
Rent expense, leased facilities and expense | $10,200,000 | $8,000,000 | $8,700,000 | ' | ' | |
[1] | There were no material capital leases at December 31, 2012 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Schedule of Contractual Obligations) (Details) (USD $) | Dec. 31, 2013 | Jan. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Processing providers [Member] | Telecommunications providers [Member] | Office and equipment leases [Member] | Revolving Credit Facility [Member] | Term Credit Facility [Member] | ||
Interest Payments Including Net Settlements On Interest Rate Swaps [Member] | |||||||||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of interest rate derivatives | ' | $50,000 | $25,000 | $35,000 | ' | ' | ' | ' | ' |
Other significant contractual obligations: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 208,768 | ' | ' | ' | 12,922 | 6,939 | 38,907 | 150,000 | 2,000 |
Less than 1 year | 20,613 | ' | ' | ' | 6,844 | 3,359 | 10,410 | 0 | 1,400 |
1 to 3 years | 22,047 | ' | ' | ' | 6,078 | 2,743 | 13,226 | 0 | 500 |
3 to 5 years | 158,088 | ' | ' | ' | 0 | 837 | 7,251 | 150,000 | ' |
More than 5 years | $8,020 | ' | ' | ' | $0 | $0 | $8,020 | ' | ' |
Segments_Segments_Narrative_De
Segments Segments (Narrative) (Details) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | Payroll Segment [Member] | Payroll Segment [Member] | Campus Solutions Segment [Member] | Campus Solutions Segment [Member] | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Number of reportable segments | 5 | ' | ' | ' | ' |
Portion of total assets representing funds for loan servicing customers | ' | 62.00% | 67.00% | 32.00% | 26.00% |
Segments_Schedule_of_Segment_R
Segments (Schedule of Segment Reporting Information, by Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $530,380 | $557,129 | $546,624 | $501,239 | $499,965 | $530,677 | $515,218 | $467,576 | $2,135,372 | $2,013,436 | $1,985,577 |
Total depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 35,354 | 27,832 | 27,441 |
Total interest income | ' | ' | ' | ' | ' | ' | ' | ' | 124 | 201 | 142 |
Total interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 5,429 | 3,446 | 4,122 |
Net income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 74,102 | 64,353 | 42,988 |
Total assets | 900,305 | ' | ' | ' | 813,414 | ' | ' | ' | 900,305 | 813,414 | 596,921 |
Card Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,981,011 | 1,923,145 | 1,925,667 |
Total depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 26,934 | 24,057 | 23,313 |
Total interest income | ' | ' | ' | ' | ' | ' | ' | ' | 121 | 201 | 142 |
Total interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 5,425 | 3,729 | 4,329 |
Net income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 80,985 | 75,691 | 68,613 |
Total assets | 566,943 | ' | ' | ' | 466,196 | ' | ' | ' | 566,943 | 466,196 | 451,757 |
Payroll Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 44,565 | 21,368 | 19,505 |
Total depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3,478 | 1,153 | 694 |
Net income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 2,056 | 1,682 | 393 |
Total assets | 78,573 | ' | ' | ' | 71,182 | ' | ' | ' | 78,573 | 71,182 | 52,520 |
Heartland School Solutions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 50,541 | 36,614 | 11,178 |
Total depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 2,282 | 482 | 1,412 |
Net income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 9,085 | 5,371 | 2,255 |
Total assets | 155,823 | ' | ' | ' | 166,317 | ' | ' | ' | 155,823 | 166,317 | 53,750 |
Campus Solutions Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 36,186 | 8,065 | 6,488 |
Total depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 2,330 | 418 | 263 |
Total interest income | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 0 | 0 |
Total interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 7 | 2 |
Net income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 2,255 | -104 | -404 |
Total assets | 81,719 | ' | ' | ' | 77,168 | ' | ' | ' | 81,719 | 77,168 | 6,826 |
Other Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 23,069 | 24,244 | 22,739 |
Total depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 1,641 | 1,481 | 1,288 |
Total interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 3 |
Net income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 462 | 975 | 1,589 |
Total assets | 17,247 | ' | ' | ' | 32,551 | ' | ' | ' | 17,247 | 32,551 | 32,068 |
Unallocated Corporate Administration Amounts [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | -1,311 | 241 | 471 |
Net income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | -20,741 | -19,262 | -29,458 |
Reconciling Items [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ($3) | ($290) | ($212) |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Calculation of Numerator and Denominator in Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations attributable to Heartland | ' | ' | ' | ' | ' | ' | ' | ' | $74,712 | $64,353 | $42,988 |
Income from discontinued operations attributable to Heartland | ' | ' | ' | ' | ' | ' | ' | ' | 3,914 | 1,536 | 951 |
Net income attributable to Heartland | $17,405 | $21,981 | $19,681 | $19,559 | $14,954 | $19,380 | $17,801 | $13,754 | $78,626 | $65,889 | $43,939 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic weighted average shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 36,791 | 38,468 | 38,931 |
Stock options and restricted share units (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,262 | 1,590 | 1,302 |
Diluted weighted average shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 38,053 | 40,058 | 40,233 |
Basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $2.03 | $1.67 | $1.10 |
Income from discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.11 | $0.04 | $0.03 |
Basic earnings per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $2.14 | $1.71 | $1.13 |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.46 | $0.58 | $0.53 | $0.41 | $0.37 | $0.47 | $0.43 | $0.33 | $1.96 | $1.60 | $1.07 |
Income from discontinued operations (in dollars per share) | $0 | $0 | $0 | $0.10 | $0.01 | $0.01 | $0.01 | $0.01 | $0.10 | $0.04 | $0.02 |
Diluted earnings per share (in dollars per share) | $0.46 | $0.58 | $0.53 | $0.51 | $0.38 | $0.48 | $0.44 | $0.34 | $2.06 | $1.64 | $1.09 |
Discontinued_Operation_Details
Discontinued Operation (Details) (USD $) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Gain on sale of business | ' | $3,786,000 | $0 | $0 | ' |
Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' |
Income from discontinued operations, net of income tax | ' | 3,970,000 | 2,185,000 | 1,359,000 | ' |
Net income from discontinued operations attributable to non-controlling interests | ' | -56,000 | -649,000 | -408,000 | ' |
Net income from discontinued operations attributable to Heartland | ' | 3,914,000 | 1,536,000 | 951,000 | ' |
CPOS [Member] | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' |
Discontinued Operation, Tax Effect of Discontinued Operation | ' | 0 | 1,000 | 1,000 | ' |
Ownership percentage by noncontrolling owners | ' | ' | 30.00% | ' | ' |
Sale of subsidiary, including amount attributable to noncontrolling interest | ' | ' | ' | ' | 30,300,000 |
Sale of subsidiary, portion attributable to parent | ' | ' | ' | ' | 20,900,000 |
Parent's ownership percentage | ' | 70.00% | ' | ' | ' |
Gain on sale of business | ' | 3,786,000 | ' | ' | ' |
Tax effect of gain on sale of business | 2,067,000 | 2,000 | ' | ' | ' |
Discontinued Operation, Balance Sheet Disclosures [Abstract] | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | 0 | 2,141,000 | ' | ' |
Receivables, net | ' | 0 | 904,000 | ' | ' |
Investments held to maturity | ' | 0 | 3,229,000 | ' | ' |
Inventory | ' | 0 | 406,000 | ' | ' |
Property and equipment, net | ' | 0 | 620,000 | ' | ' |
Goodwill | ' | 0 | 9,337,000 | ' | ' |
Intangible assets, net | ' | 0 | 260,000 | ' | ' |
Other assets | ' | 0 | 147,000 | ' | ' |
Total assets held for sale | ' | 0 | 17,044,000 | ' | ' |
Accounts payable | ' | 0 | 497,000 | ' | ' |
Processing liabilities | ' | 0 | 86,000 | ' | ' |
Accrued expenses and other liabilities | ' | 0 | 1,089,000 | ' | ' |
Total liabilities related to assets held for sale | ' | 0 | 1,672,000 | ' | ' |
Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' |
Revenues | ' | 1,117,000 | 13,123,000 | 11,373,000 | ' |
Expenses | ' | 870,000 | 10,186,000 | 9,471,000 | ' |
Income from operations | ' | 247,000 | 2,937,000 | 1,902,000 | ' |
Income from discontinued operations, net of income tax | ' | 184,000 | 2,185,000 | 1,359,000 | ' |
Net income from discontinued operations attributable to non-controlling interests | ' | ($56,000) | ($649,000) | ($408,000) | ' |
Quarterly_Consolidated_Results2
Quarterly Consolidated Results of Income (Unaudited) (Schedule of Quarterly Financial Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $530,380 | $557,129 | $546,624 | $501,239 | $499,965 | $530,677 | $515,218 | $467,576 | $2,135,372 | $2,013,436 | $1,985,577 |
Costs of services | 456,933 | 480,386 | 469,763 | 428,624 | 434,465 | 461,084 | 454,920 | 413,232 | 1,835,706 | 1,763,701 | 1,783,731 |
General and administrative expenses | 42,326 | 41,871 | 43,531 | 45,840 | 40,289 | 36,787 | 31,309 | 31,549 | 173,568 | 139,934 | 125,765 |
Total expenses | 499,259 | 522,257 | 513,294 | 474,464 | 474,754 | 497,871 | 486,229 | 444,781 | 2,009,274 | 1,903,635 | 1,909,496 |
Income from operations | 31,121 | 34,872 | 33,330 | 26,775 | 25,211 | 32,806 | 28,989 | 22,795 | 126,098 | 109,801 | 76,081 |
Net income attributable to Heartland | $17,405 | $21,981 | $19,681 | $19,559 | $14,954 | $19,380 | $17,801 | $13,754 | $78,626 | $65,889 | $43,939 |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | $0.46 | $0.58 | $0.53 | $0.41 | $0.37 | $0.47 | $0.43 | $0.33 | $1.96 | $1.60 | $1.07 |
Income from discontinued operations (in dollars per share) | $0 | $0 | $0 | $0.10 | $0.01 | $0.01 | $0.01 | $0.01 | $0.10 | $0.04 | $0.02 |
Earnings per share (in dollars per share) | $0.46 | $0.58 | $0.53 | $0.51 | $0.38 | $0.48 | $0.44 | $0.34 | $2.06 | $1.64 | $1.09 |