Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | SS&C TECHNOLOGIES HOLDINGS, INC. | |
Entity Central Index Key | 0001402436 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 255,026,351 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-34675 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 71-0987913 | |
Entity Address, Address Line One | 80 Lamberton Road | |
Entity Address, City or Town | Windsor | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06095 | |
City Area Code | 860 | |
Local Phone Number | 298-4500 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Security12b Title | Common stock, par value $0.01 per share | |
Trading Symbol | SSNC | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 438.3 | $ 564 |
Funds receivable and funds held on behalf of clients | 1,620.3 | 2,755.7 |
Accounts receivable, net of allowance for credit losses of $21.6 and $17.9, respectively | 826.3 | 713.4 |
Contract asset | 31.6 | 27.4 |
Prepaid expenses and other current assets | 166.1 | 187.5 |
Restricted cash and cash equivalents | 3.3 | 4.2 |
Total current assets | 3,085.9 | 4,252.2 |
Property, plant and equipment, net (Note 2) | 356.5 | 382 |
Operating lease right-of-use assets | 278.2 | 291.2 |
Investments (Note 3) | 160.1 | 172.8 |
Unconsolidated affiliates (Note 4) | 308.2 | 306.1 |
Contract asset | 86.5 | 77.9 |
Goodwill (Note 6) | 8,866.8 | 8,045.5 |
Intangible and other assets, net of accumulated amortization of $3,028.8 and $2,890.5, respectively | 4,358.1 | 3,805.3 |
Total assets | 17,500.3 | 17,333 |
Current liabilities: | ||
Current portion of long-term debt (Note 7) | 57.8 | 47.4 |
Client funds obligations | 1,620.3 | 2,755.7 |
Accounts payable | 54.5 | 28.7 |
Income taxes payable | 0 | 25.5 |
Accrued employee compensation and benefits | 196.7 | 322.2 |
Interest payable | 27.5 | 27.5 |
Other accrued expenses | 347.4 | 310.1 |
Deferred revenues | 471.6 | 334 |
Total current liabilities | 2,775.8 | 3,851.1 |
Long-term debt, net of current portion (Note 7) | 7,234.5 | 5,901.5 |
Operating lease liabilities | 253.8 | 268.2 |
Other long-term liabilities | 250.5 | 254 |
Deferred income taxes | 871.5 | 835 |
Total liabilities | 11,386.1 | 11,109.8 |
Commitments and contingencies (Note 13) | ||
Redeemable noncontrolling interest | 2.1 | 0 |
Stockholders’ equity (Note 8): | ||
Preferred stock, $0.01 par value per share, 5.0 million shares authorized; no shares issued | 0 | 0 |
Common stock | 2.7 | 2.7 |
Additional paid-in capital | 5,039.3 | 4,895.7 |
Accumulated other comprehensive loss | (505) | (242) |
Retained earnings | 2,473.3 | 2,293 |
Stockholders' equity before treasury stock | 7,010.3 | 6,949.4 |
Less: cost of common stock in treasury, 15.4 and 13.1 million shares, respectively | (954.9) | (784) |
Total SS&C stockholders' equity | 6,055.4 | 6,165.4 |
Noncontrolling interest (Note 9) | 56.7 | 57.8 |
Total stockholders' equity | 6,112.1 | 6,223.2 |
Total liabilities, redeemable noncontrolling interest and stockholders' equity | 17,500.3 | 17,333 |
Class A Non-Voting Common Stock [Member] | ||
Stockholders’ equity (Note 8): | ||
Common stock |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts receivable | $ 21.6 | $ 17.9 |
Accumulated amortization of finite-lived intangible assets | $ 3,146.7 | $ 2,890.5 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 270,300,000 | 269,100,000 |
Common stock, shares outstanding | 255,000,000 | 256,000,000 |
Treasury stock, shares | 15,400,000 | 13,100,000 |
Class A Non-Voting Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||
Total revenues | $ 1,328.7 | $ 1,259 | $ 2,623.7 | $ 2,492.4 |
Cost of revenues: | ||||
Total cost of revenues | 704.4 | 664 | 1,379.6 | 1,338.3 |
Gross profit | 624.3 | 595 | 1,244.1 | 1,154.1 |
Operating expenses: | ||||
Selling and marketing | 139.3 | 97.7 | 250.2 | 189.7 |
Research and development | 118.4 | 100.8 | 224.2 | 208.7 |
General and administrative | 121 | 83.6 | 232.3 | 173.7 |
Total operating expenses | 378.7 | 282.1 | 706.7 | 572.1 |
Operating income | 245.6 | 312.9 | 537.4 | 582 |
Interest expense, net | (67.7) | (51) | (117) | (102.4) |
Other (expense) income, net | (20.4) | 6.5 | (29.4) | 24.5 |
Equity in earnings of unconsolidated affiliates, net | 1.1 | (0.4) | 2.4 | (0.1) |
Loss on extinguishment of debt | (3.1) | (1.5) | (3.1) | (1.8) |
Income before income taxes | 155.5 | 266.5 | 390.3 | 502.2 |
Provision for income taxes | 45.2 | 76.7 | 108.7 | 137.5 |
Net income | 110.3 | 189.8 | 281.6 | 364.7 |
Net loss attributable to noncontrolling interest | 0.3 | 0 | 1.1 | 0 |
Net income attributable to SS&C common stockholders | $ 110.6 | $ 189.8 | $ 282.7 | $ 364.7 |
Basic earnings per share attributable to SS&C common stockholders | $ 0.43 | $ 0.74 | $ 1.11 | $ 1.42 |
Diluted earnings per share attributable to SS&C common stockholders | $ 0.42 | $ 0.71 | $ 1.06 | $ 1.36 |
Basic weighted-average number of common shares outstanding | 254.9 | 255.7 | 255.3 | 256.4 |
Diluted weighted-average number of common and common equivalent shares outstanding | 263.9 | 267.6 | 265.5 | 267.8 |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized (loss) gain on interest rate swaps | $ 0.3 | $ (0.2) | $ 1.5 | $ 0.3 |
Foreign currency exchange translation adjustment | (235.1) | 1.9 | (263.4) | 10.3 |
Change in defined benefit pension obligation | 0 | 0.1 | (1.1) | 0.1 |
Total other comprehensive income (loss), net of tax | (234.8) | 1.8 | (263) | 10.7 |
Comprehensive income | (124.5) | 191.6 | 18.6 | 375.4 |
Comprehensive loss attributable to noncontrolling interest | 0.3 | 0 | 1.1 | 0 |
Comprehensive income attributable to SS&C common stockholders | (124.2) | 191.6 | 19.7 | 375.4 |
Software-enabled Services [Member] | ||||
Revenues: | ||||
Total revenues | 1,070.7 | 1,057.1 | 2,155.9 | 2,100.5 |
Cost of revenues: | ||||
Total cost of revenues | 610.3 | 582.8 | 1,205.8 | 1,178.3 |
License, Maintenance and Related [Member] | ||||
Revenues: | ||||
Total revenues | 258 | 201.9 | 467.8 | 391.9 |
Cost of revenues: | ||||
Total cost of revenues | $ 94.1 | $ 81.2 | $ 173.8 | $ 160 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flow from operating activities: | ||
Net income | $ 281.6 | $ 364.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 329.6 | 335.3 |
Equity in earnings of unconsolidated affiliates, net | (2.4) | 0.1 |
Cash distributions received from unconsolidated affiliates | 0 | 10 |
Gain on bargain purchase | 0 | (3.2) |
Stock-based compensation expense | 85.9 | 55.5 |
Net losses (gains) on investments | 12.1 | (17.2) |
Amortization and write-offs of loan origination costs and original issue discounts | 6.5 | 6.7 |
Loss on extinguishment of debt, net | 3.1 | 1.8 |
Loss on sale or disposition of property and equipment | 1.2 | 0.1 |
Deferred income taxes | (66.8) | (47.2) |
Provision for credit losses | 7.1 | 4.5 |
Changes in operating assets and liabilities, excluding effects from acquisitions: | ||
Accounts receivable | (82) | (63.7) |
Prepaid expenses and other assets | 41.7 | (17.5) |
Contract assets | (13) | (0.8) |
Accounts payable | 2.1 | (0.1) |
Accrued expenses and other liabilities | (149.5) | (82.1) |
Income taxes prepaid and payable | 12 | 32.2 |
Deferred revenue | (21.7) | (16.8) |
Net cash provided by operating activities | 447.5 | 562.3 |
Cash flow from investing activities: | ||
Cash paid for business acquisitions, net of cash acquired | (1,597.1) | 7.3 |
Additions to property and equipment | (22.6) | (17.6) |
Proceeds from Sale of Property, Plant, and Equipment | 8.7 | |
Additions to capitalized software | (63.3) | (42.1) |
Investments in securities | (10) | (10) |
Proceeds from sales / maturities of investments | 5.6 | 38.9 |
Collection of other non-current receivables | 5.1 | 5.6 |
Net cash used in investing activities | (1,673.6) | (17.9) |
Cash flow from financing activities: | ||
Cash received from debt borrowings, net of original issue discount | 1,667.1 | 210 |
Repayments of debt | (317.9) | (393.1) |
Payment of deferred financing fees | (12.4) | 0 |
Net (decrease) increase in client funds obligations | (1,052) | 1,682.7 |
Proceeds from exercise of stock options | 58.3 | 88.9 |
Withholding taxes paid related to equity award net share settlement | (0.6) | (5.6) |
Purchases of common stock for treasury | (170.9) | (325) |
Dividends paid on common stock | (102.4) | (82.1) |
Net cash provided by financing activities | 69.2 | 1,175.8 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (21.7) | (1.6) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,178.6) | 1,718.6 |
Cash, cash equivalents and restricted cash, beginning of period | 3,171.4 | 1,337.9 |
Cash, cash equivalents and restricted cash and cash equivalents, end of period | 1,992.8 | 3,056.5 |
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents: | ||
Cash and cash equivalents | 438.3 | 247.1 |
Restricted cash and cash equivalents | 3.3 | 3.9 |
Restricted cash and cash equivalents included in funds receivable and funds held on behalf of clients | 1,551.2 | 2,805.5 |
Cash and cash equivalents and restricted cash | $ 1,992.8 | $ 3,056.5 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2020 | $ 5,716,500,000 | $ 2,600,000 | $ 4,544,000,000 | $ 1,667,000,000 | $ (201,000,000) | $ (296,100,000) | $ 0 |
Beginning balance, shares at Dec. 31, 2020 | 263,900,000 | ||||||
Net income | 364,700,000 | 364,700,000 | 0 | 0 | 0 | ||
Foreign exchange translation adjustment | 10,300,000 | 10,300,000 | 0 | 0 | |||
Net change in interest rate swaps | 300,000 | 300,000 | 0 | 0 | |||
Change in defined benefit plan obligation | 100,000 | 100,000 | 0 | 0 | |||
Stock-based compensation expense | 55,500,000 | 55,500,000 | 0 | 0 | 0 | 0 | |
Exercise of options, net of withholding taxes | 83,300,000 | $ 100,000 | 83,200,000 | 0 | 0 | 0 | 0 |
Exercise of options, net of withholding taxes, shares | 2,300,000 | ||||||
Purchases of common stock | (325,000,000) | (325,000,000) | 0 | ||||
Cash dividends declared | (82,000,000) | (100,000) | (82,100,000) | 0 | 0 | 0 | |
Ending balance at Jun. 30, 2021 | 5,823,700,000 | $ 2,700,000 | 4,682,800,000 | 1,949,600,000 | (190,300,000) | (621,100,000) | 0 |
Ending balance, shares at Jun. 30, 2021 | 266,200,000 | ||||||
Beginning balance at Mar. 31, 2021 | 5,734,200,000 | $ 2,600,000 | 4,600,500,000 | 1,800,700,000 | (192,100,000) | (477,500,000) | 0 |
Beginning balance, shares at Mar. 31, 2021 | 264,700,000 | ||||||
Net income | 189,800,000 | 189,800,000 | 0 | 0 | 0 | ||
Foreign exchange translation adjustment | 1,900,000 | 1,900,000 | 0 | 0 | |||
Net change in interest rate swaps | (200,000) | (200,000) | 0 | 0 | |||
Change in defined benefit plan obligation | 100,000 | 100,000 | 0 | 0 | |||
Stock-based compensation expense | 27,700,000 | 27,700,000 | 0 | 0 | 0 | 0 | |
Exercise of options, net of withholding taxes | 54,600,000 | $ 100,000 | 54,500,000 | 0 | 0 | 0 | 0 |
Exercise of options, net of withholding taxes, shares | 1,500,000 | ||||||
Purchases of common stock | (143,600,000) | (143,600,000) | 0 | ||||
Cash dividends declared | (40,800,000) | 100,000 | (40,900,000) | 0 | 0 | 0 | |
Ending balance at Jun. 30, 2021 | 5,823,700,000 | $ 2,700,000 | 4,682,800,000 | 1,949,600,000 | (190,300,000) | (621,100,000) | 0 |
Ending balance, shares at Jun. 30, 2021 | 266,200,000 | ||||||
Beginning balance at Dec. 31, 2021 | $ 6,223,200,000 | $ 2,700,000 | 4,895,700,000 | 2,293,000,000 | (242,000,000) | (784,000,000) | 57,800,000 |
Beginning balance, shares at Dec. 31, 2021 | 269,100,000 | 269,100,000 | |||||
Net income | $ 281,600,000 | 282,700,000 | 0 | 0 | (1,100,000) | ||
Foreign exchange translation adjustment | (263,400,000) | (263,400,000) | 0 | 0 | |||
Net change in interest rate swaps | 1,500,000 | 1,500,000 | 0 | 0 | |||
Change in defined benefit plan obligation | (1,100,000) | (1,100,000) | 0 | 0 | |||
Stock-based compensation expense | 85,900,000 | 85,900,000 | 0 | 0 | 0 | 0 | |
Exercise of options, net of withholding taxes | 57,700,000 | 57,700,000 | 0 | 0 | 0 | 0 | |
Exercise of options, net of withholding taxes, shares | 1,200,000 | ||||||
Purchases of common stock | (170,900,000) | (170,900,000) | 0 | ||||
Cash dividends declared | (102,400,000) | (102,400,000) | 0 | 0 | 0 | ||
Ending balance at Jun. 30, 2022 | $ 6,112,100,000 | $ 2,700,000 | 5,039,300,000 | 2,473,300,000 | (505,000,000) | (954,900,000) | 56,700,000 |
Ending balance, shares at Jun. 30, 2022 | 270,300,000 | 270,300,000 | |||||
Beginning balance at Mar. 31, 2022 | $ 6,232,700,000 | $ 2,700,000 | 4,984,100,000 | 2,414,000,000 | (270,200,000) | (954,900,000) | 57,000,000 |
Beginning balance, shares at Mar. 31, 2022 | 270,100,000 | ||||||
Net income | 110,300,000 | 110,600,000 | 0 | 0 | (300,000) | ||
Foreign exchange translation adjustment | (235,100,000) | (235,100,000) | 0 | 0 | |||
Net change in interest rate swaps | 300,000 | 300,000 | 0 | 0 | |||
Change in defined benefit plan obligation | 0 | 0 | 0 | 0 | |||
Stock-based compensation expense | 46,000,000 | 46,000,000 | 0 | 0 | 0 | 0 | |
Exercise of options, net of withholding taxes | 9,200,000 | 9,200,000 | 0 | 0 | 0 | 0 | |
Exercise of options, net of withholding taxes, shares | 200,000 | ||||||
Purchases of common stock | 0 | 0 | 0 | ||||
Cash dividends declared | (51,300,000) | (51,300,000) | 0 | 0 | 0 | ||
Ending balance at Jun. 30, 2022 | $ 6,112,100,000 | $ 2,700,000 | $ 5,039,300,000 | $ 2,473,300,000 | $ (505,000,000) | $ (954,900,000) | $ 56,700,000 |
Ending balance, shares at Jun. 30, 2022 | 270,300,000 | 270,300,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per share | $ 0.20 | $ 0.16 | $ 0.40 | $ 0.32 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Note 1—Basis of Presentation and Principles of Consolidation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These accounting principles were applied on a basis consistent with those of the audited Consolidated Financial Statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2022 (the “2021 Form 10-K”). The inputs into our judgments and estimates consider the economic implications of COVID-19 on our critical and significant accounting estimates. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments (consisting of only normal recurring adjustments, except as noted elsewhere in the notes to the Condensed Consolidated Financial Statements) necessary for a fair statement of our financial position as of June 30, 2022, the results of our operations for the three and six months ended June 30, 2022 and 2021, and our cash flows for the six months ended June 30, 2022 and 2021. These statements do not include all of the information and footnotes required by GAAP for annual financial statements. The Condensed Consolidated Financial Statements contained herein should be read in conjunction with the audited Consolidated Financial Statements and footnotes as of and for the year ended December 31, 2021, which were included in the 2021 Form 10-K. The December 31, 2021 Consolidated Balance Sheet data were derived from audited financial statements but do not include all disclosures required by GAAP for annual financial statements. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the expected results for any subsequent quarters or the full year. The accompanying unaudited condensed consolidated financial statements include the accounts of SS&C Technologies Holdings, Inc. and its subsidiaries, including a variable interest entity (“VIE”) for which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Recently Adopted Accounting Pronouncement In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities From Contracts with Customers . ASU 2021-08 requires companies to apply ASC 606 to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination on the acquisition date. Generally, this new guidance will result in an acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Under current GAAP, we have historically recognized contract assets and contract liabilities acquired in a business combination at fair value. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. ASU 2021-08 should be applied prospectively to business combinations that occur after the effective date. We adopted ASU 2021-08 as of January 1, 2022 on a prospective basis. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows. Recent Accounting Pronouncement Not Yet Effective In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-04 provides optional expedients and exceptions for applying GAAP if certain criteria are met to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. In January 2021, the FASB issued Update 2021-01, Reference Rate Reform (Topic 848): Scope . The update provides additional optional guidance on the transition from LIBOR to include derivative instruments that use an interest rate for margining, discounting or contract price alignment. The standard will ease, if warranted, the requirements for accounting for the future effects of the rate reform. An entity may elect to apply the amendments prospectively to contract modifications made on or before December 31, 2022. A substantial portion of our indebtedness bears interest at variable interest rates, primarily based on USD-LIBOR. We continue to monitor the impact the discontinuance of LIBOR or another reference rate will have on our contracts, hedging relationships and other transactions. We are currently assessing the impact of this standard on our financial condition and results of operations. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 2—Property, Plant and Equipment, net Property, plant and equipment and the related accumulated depreciation are as follows (in millions): June 30, December 31, 2022 2021 Land $ 39.4 $ 49.8 Building and improvements 285.4 307.5 Equipment, furniture, and fixtures 506.8 475.4 831.6 832.7 Less: accumulated depreciation ( 475.1 ) ( 450.7 ) Total property, plant and equipment, net $ 356.5 $ 382.0 Depreciation expense for the three and six months ended June 30, 2022 was $ 19.0 million and $ 38.2 million, respectively. Depreciation expense for the three and six months ended June 30, 2021 was $ 19.5 million and $ 44.4 million, respectively. As of June 30, 2022 , property, plant and equipment assets, net of $ 10.6 million have been reclassified as held for sale and are presented in prepaid expenses and other current assets in our condensed consolidated balance sheet. Unpaid property, plant and equipment additions of $ 19.2 million are included in accounts payable and other accrued expenses as of June 30, 2022 in our condensed consolidated balance sheet. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 3—Investments Investments are as follows (in millions): June 30, December 31, 2022 2021 Non-marketable equity securities $ 84.5 $ 84.5 Seed capital investments 34.0 32.0 Marketable equity securities 26.8 40.8 Partnership interests in private equity funds 14.8 15.5 Total investments $ 160.1 $ 172.8 Realized and unrealized gains and losses for our equity securities are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Unrealized (losses) gains on equity securities held as of the end of the period $ ( 7.7 ) $ 3.1 $ ( 11.6 ) $ 8.9 Realized (losses) gains for equity securities sold during the period ( 0.2 ) 0.6 ( 0.5 ) 7.7 Total (losses) gains recognized in other income, net $ ( 7.9 ) $ 3.7 $ ( 12.1 ) $ 16.6 Fair Value Measurement Authoritative accounting guidance on fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. As of June 30, 2022 and December 31, 2021, we held certain investment assets and certain liabilities that are required to be measured at fair value on a recurring basis. These investments include money market funds and marketable equity securities where fair value is determined using quoted prices in active markets. Accordingly, the fair value measurements of these investments have been classified as Level 1 in the tables below. Investments for which we elected net asset value as a practical expedient for fair value and investments measured using the fair value measurement alternative are excluded from the tables below. Fair value for deferred compensation liabilities that are credited with deemed gains or losses of the underlying hypothetical investments, primarily equity securities, have been classified as Level 1 in the tables below. The following tables present assets and liabilities measured at fair value on a recurring basis (in millions): Fair Value Measurements at Reporting Date Using June 30, 2022 Quoted prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market funds (1) $ 1,242.6 $ 1,242.6 $ — $ — Seed capital investments (2) 34.0 34.0 — — Marketable equity securities (2) 26.8 26.8 — — Deferred compensation liabilities (3) ( 14.2 ) ( 14.2 ) — — Total $ 1,289.2 $ 1,289.2 $ — $ — Fair Value Measurements at Reporting Date Using December 31, 2021 Quoted prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market funds (1) $ 1,961.0 $ 1,961.0 $ — $ — Seed capital investments (2) 32.0 32.0 — — Marketable equity securities (2) 40.8 40.8 — — Deferred compensation liabilities (3) ( 21.3 ) ( 21.3 ) — — Total $ 2,012.5 $ 2,012.5 $ — $ — _____________________________________________________ (1) Included in Cash and cash equivalents and Funds receivable and funds held on behalf of clients on the Condensed Consolidated Balance Sheet. (2) Included in Investments on the Condensed Consolidated Balance Sheet . (3) Included in Other long-term liabilities on the Condensed Consolidated Balance Sheet . We have partnership interests in various private equity funds that are not included in the tables above. Our investments in private equity funds were $ 14.8 million and $ 15.5 million at June 30, 2022 and December 31, 2021, respectively, of which $ 12.0 million and $ 12.7 million, respectively, were measured using net asset value as a practical expedient for fair value and $ 2.8 million and $ 2.8 million, respectively, were accounted for under the equity method of accounting. The investments in private equity funds represent underlying investments in domestic and international markets across various industry sectors. Generally, our investments in private equity funds are non-transferable or are subject to long holding periods, and withdrawals from the private equity firm partnerships are typically not permitted. The maximum risk of loss related to our private equity fund investments is limited to the carrying value of its investments in the entities. We add new investment products such as mutual funds and exchange traded funds, through our subsidiary, ALPS Advisors, from time to time by providing the initial cash investments as seed capital. We consolidate seed capital investments when our ownership percentage exceeds 50%. Shares in those investments not owned by us are reflected as a redeemable noncontrolling interest on the condensed consolidated balance sheet. |
Unconsolidated Affiliates
Unconsolidated Affiliates | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Unconsolidated Affiliates | Note 4—Unconsolidated Affiliates Investments in unconsolidated affiliates are as follows (in millions): June 30, 2022 December 31, 2021 Ownership Percentage Carrying Value Excess carrying value of investment over proportionate share of net assets Carrying Value Excess carrying value of investment over proportionate share of net assets International Financial Data Services L.P. 50.0 % $ 86.7 $ 36.5 $ 87.8 $ 38.2 Orbit Private Investments L.P. 9.8 % 86.0 — 86.0 — Pershing Road Development Company, LLC 50.0 % 76.1 64.1 74.0 65.9 Broadway Square Partners, LLP 50.0 % 55.5 30.4 54.3 29.8 Other unconsolidated affiliates 3.9 — 4.0 — Total $ 308.2 $ 131.0 $ 306.1 $ 133.9 Investments in unconsolidated affiliates are accounted for under the equity method of accounting. We record our proportionate share of the results of the unconsolidated affiliates and amortization expense related to basis differences in Equity in earnings of unconsolidated affiliates, net on the Condensed Consolidated Statement of Comprehensive Income. One of the unconsolidated affiliates is a party to an interest rate swap agreement. We record our proportionate share of the change in value of the interest rate swap agreement in Accumulated other comprehensive loss. Amounts reclassified from Accumulated other comprehensive loss to Net income are recorded in Equity in earnings of unconsolidated affiliates, net on the Condensed Consolidated Statement of Comprehensive Income. Equity in earnings of unconsolidated affiliates, net are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 International Financial Data Services L.P. $ 0.6 $ 0.5 $ 1.1 $ 2.1 Pershing Road Development Company, LLC ( 0.2 ) 0.3 0.1 1.2 Broadway Square Partners, LLP 0.7 0.4 1.2 0.8 Other unconsolidated affiliates — ( 1.6 ) — ( 4.2 ) Total $ 1.1 $ ( 0.4 ) $ 2.4 $ ( 0.1 ) |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Note 5—Acquisitions Blue Prism On March 16, 2022 , we purchased all of the outstanding stock of Blue Prism Group plc (“Blue Prism”) for approximately $ 1.6 billion in cash, plus the costs of effecting the transaction pursuant to a Scheme of Arrangement entered into under the U.K. Takeover Code. We financed the acquisition by entering into an Incremental Joinder (the “Incremental Joinder”) to the amended and restated credit agreement. Blue Prism is a global leader in enterprise robotics process automation and intelligent automation. The net assets and results of operations of Blue Prism have been included in our Condensed Consolidated Financial Statements from March 16, 2022. The preliminary fair value of the intangible assets, consisting of customer relationships, completed technologies and trade names, was determined using the income approach. Specifically, the relief-from-royalty method was utilized for completed technologies and trade names, and the excess earnings method was utilized for customer relationships. Completed technologies and customer relationships are amortized each year based on the ratio that the projected cash flows for the intangible assets bear to the total of current and expected future cash flows for the intangible assets. Trade names are amortized on a straight-line basis. Customer relationships, completed technologies and trade names are expected to be amortized over approximately fifteen, eight and fourteen years, respectively, in each case the estimated life of the assets. The remainder of the purchase price was allocated to goodwill and a portion is tax deductible. During three months ended June 30, 2022 measurement period adjustments were recorded which resulted in increases in value of approximately $ 28.1 million and $ 4.0 million in customer relationships and completed technologies, respectively, and decreases in value of approximately $ 15.1 million and 3.0 million in deferred tax liabilities and trade names, respectively. Goodwill was also adjusted as a result of the measurement period adjustments. There are $ 62.8 million and $ 73.6 million in revenues from Blue Prism’s operations included in the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022, respectively. Hubwise On March 25, 2022 , we purchased all of the outstanding stock of Hubwise Holdings Limited (“Hubwise”) for approximately $ 75.0 million in cash, plus the costs of effecting the transaction. Hubwise is a regulated business-to-business investment platform serving advisers, discretionary wealth managers and self-directed direct-to-consumer propositions. The net assets and results of operations of Hubwise have been included in our Condensed Consolidated Financial Statements from March 25, 2022. The preliminary fair value of the intangible assets, consisting of customer relationships, completed technologies and trade names, was determined using the income approach. Specifically, the relief-from-royalty method was utilized for completed technologies and trade names, and the excess earnings method was utilized for customer relationships. Completed technologies and customer relationships are amortized each year based on the ratio that the projected cash flows for the intangible assets bear to the total of current and expected future cash flows for the intangible assets. Trade names are amortized on a straight-line basis. Customer relationships, completed technologies and trade name are expected to be amortized over approximately twelve, eight and fourteen years, respectively, in each case the estimated life of the assets. The remainder of the purchase price was allocated to goodwill and a portion is tax deductible. During three months ended June 30, 2022 , measurement period adjustments were recorded which resulted in decreases in value of approximately $ 14.2 million, $ 2.8 million and $ 4.0 million in completed technologies, customer relationships and deferred income taxes, respectively. Goodwill was also adjusted as a result of the measurement period adjustments. There are $ 1.6 million and $ 1.7 million in revenues from Hubwise’s operations included in the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022, respectively. T he following summarizes the preliminary allocation of the purchase price for the 2022 acquisitions of Blue Prism and Hubwise (in millions). The fair values of the acquired intangible assets, and the related evaluation of taxes, are provisional pending receipt of the final valuation for those assets. The valuation of the acquired liabilities is also preliminary. Blue Prism Hubwise Accounts receivable $ 50.1 $ 0.7 Property, plant and equipment 1.9 0.1 Other assets 10.4 0.3 Operating lease right-of-use assets 4.4 0.3 Customer relationships 520.0 23.0 Completed technologies 250.0 8.7 Trade names 38.0 1.0 Goodwill 945.3 50.5 Accounts payable ( 6.6 ) ( 0.2 ) Accrued employee compensation and benefits ( 23.2 ) — Deferred revenue ( 166.9 ) — Deferred income taxes ( 110.7 ) ( 8.2 ) Other liabilities assumed ( 35.2 ) ( 0.7 ) Consideration paid, net of cash acquired $ 1,477.5 $ 75.5 Additionally, we acquired 5 M’s Minerals Management, LLC (“MineralWare”) in May 2022 for approximately $ 18.0 million. We acquired assets related to O’Shares exchange traded funds (“O’Shares”) in June 2022 for approximately $ 28.3 million. The following unaudited pro forma information is provided for illustrative purposes only and assumes that the acquisitions of Blue Prism, Hubwise and MineralWare occurred on January 1, 2021 and the acquisition of Capita Life & Pensions Services (Ireland) Limited (“Capita” ) occurred on January 1, 2020, after giving effect to certain adjustments, including amortization of intangibles, interest, transaction costs and tax effects. This unaudited pro forma information (in millions) should not be relied upon as being indicative of the historical results that would have been obtained if the acquisitions had actually occurred on those dates, nor of the results that may be obtained in the future. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues $ 1,329.2 $ 1,320.0 $ 2,681.4 $ 2,618.1 Net income $ 110.7 $ 165.3 $ 267.3 $ 283.7 During the six months ended June 30, 2022 and 2021 , we recorded severance expense related to personnel reductions in several of our businesses. The amount of severance expense recognized in our Condensed Consolidated Statements of Comprehensive Income for the six months ended June 30, 2022 and 2021 was as follows (in millions): Six Months Ended June 30, Consolidated Statements of Comprehensive Income Classification 2022 2021 Cost of software-enabled services $ 3.8 $ 14.1 Cost of license, maintenance and other related 0.7 1.2 Total cost of revenues 4.5 15.3 Selling and marketing 1.2 1.2 Research and development 0.8 5.8 General and administrative - 0.6 Total operating expenses 2.0 7.6 Total severance expense $ 6.5 $ 22.9 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 6—Goodwill The change in carrying value of goodwill as of and for the six months ended June 30, 2022 is as follows (in millions): Balance at December 31, 2021 $ 8,045.5 Acquisitions completed in the current year 1,002.0 Adjustments to prior acquisitions 0.3 Effect of foreign currency translation ( 181.0 ) Balance at June 30, 2022 $ 8,866.8 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 7—Debt At June 30, 2022 and December 31, 2021, debt consisted of the following (in millions): June 30, December 31, 2022 2021 Senior secured credit facilities, weighted-average interest rate of 3.54 % and 1.85 %, respectively $ 5,350.5 $ 3,974.5 5.5 % senior notes due 2027 2,000.0 2,000.0 Other indebtedness 1.2 5.2 Unamortized original issue discount and debt issuance costs ( 59.4 ) ( 30.8 ) 7,292.3 5,948.9 Less: current portion of long-term debt 57.8 47.4 Long-term debt $ 7,234.5 $ 5,901.5 Senior Secured Credit Facilities On March 22, 2022, in connection with our acquisition of Blue Prism, we entered into an Incremental Joinder to the amended and restated credit agreement dated April 16, 2018 ( “Credit Agreement”) with certain of our subsidiaries. Pursuant to the Incremental Joinder, a new $ 650.0 million senior secured incremental term loan B facility (“Term B-6 Loan”) and a new $ 880.0 million senior secured incremental term loan B facility (“Term B-7 Loan” and, together with the Term B-6 Loan, the “Incremental Term Loans”) was made available to us, the proceeds of which were used to finance substantially all of the consideration for the acquisition of Blue Prism. The Incremental Term Loans mature on March 22, 2029 and bear interest at, at our option, the Base Rate, plus 1.25% per annum or the Term Secured Overnight Financing Rate ( “SOFR”), which is subject to a floor of 0.50%, plus a credit spread adjustment set forth in the Credit Agreement, plus 2.25% per annum. The Incremental Term Loans are also subject to a 1.00% repricing premium , which will be payable in connection with certain repricing transactions (if any) completed prior to the six-month anniversary of the incurrence of the Incremental Term Loans. In connection with the Incremental Joinder, we capitalized an aggregate of $ 37.7 million in financing costs during the six months ended June 30, 2022. Except as described above, the terms, covenants and events of default applicable to the Incremental Term Loans are materially consistent with the terms, covenants and events of default applicable to the other term loans incurred under the Credit Agreement. Fair Value of Debt The carrying amounts and fair values of financial instruments are as follows (in millions): June 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Amount Value Amount Value Financial liabilities: Senior secured credit facilities $ 5,350.5 $ 5,112.2 $ 3,974.5 $ 3,943.5 5.5% senior notes due 2027 2,000.0 1,871.4 2,000.0 2,094.8 Senior secured credit facilities, revolving portion — — — — Other indebtedness 1.2 1.2 5.2 5.2 The above fair values, which are Level 2 liabilities, were computed based on comparable quoted market prices. The fair values of cash, accounts receivable, net, short-term borrowings, and accounts payable approximate the carrying amounts due to the short-term maturities of these instruments. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8—Stockholders’ Equity Stock repurchase program In July 2021, our Board of Directors authorized a stock repurchase program, which enabled us to repurchase up to $ 1 billion in the aggregate of our outstanding common stock on the open market or in privately negotiated transactions until the one-year anniversary of the Board’s authorization, unless earlier terminated by the Board. In July 2022, our Board of Directors authorized a new stock repurchase program, which also enables us to repurchase up to $ 1 billion in the aggregate of our outstanding common stock on the open market or in privately negotiated transactions. Our authority to repurchase shares under the program will continue until the one-year anniversary of the Board’s authorization, unless earlier terminated by the Board. We did no t repurchase any shares during the three months ended June 30, 2022. During the six months ended June 30, 2022, we repurchased 2.3 million shares of common stock for approximately $ 170.9 million. During the three and six months ended June 30, 2021 , we repurchased 2.0 million and 4.7 million shares, respectively, of common stock for approximately $ 143.6 million and $ 325.0 million, respectively. We use the cost method to account for treasury stock purchases. Under the cost method, the price paid for the stock is charged to the treasury stock account. Dividends We paid quarterly cash dividends of $ 0.20 per share of common stock in each of March and June of 2022 totaling $ 102.4 million. We paid quarterly cash dividends of $ 0.16 per share of common stock in each of March and June of 2021 totaling $ 82.1 million. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss balances, net of tax, consists of the following (in millions): Interest Rate Swap Foreign Currency Translation Defined Benefit Obligation Accumulated Other Comprehensive Loss Balance, December 31, 2021 $ ( 4.8 ) $ ( 237.4 ) $ 0.2 $ ( 242.0 ) Net current period other comprehensive income (loss) 1.5 ( 263.4 ) ( 1.1 ) ( 263.0 ) Balance, June 30, 2022 $ ( 3.3 ) $ ( 500.8 ) $ ( 0.9 ) $ ( 505.0 ) Adjustments to accumulated other comprehensive loss are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Pretax Tax Effect Pretax Tax Effect Pretax Tax Effect Pretax Tax Effect Interest Rate Swap Unrealized gains (losses) on interest rate swaps $ ( 0.3 ) $ ( 0.1 ) $ ( 1.0 ) $ — $ 2.9 $ ( 0.5 ) $ 1.2 $ ( 0.2 ) Reclassification of losses into net earnings on interest rate swaps 0.7 — 0.8 — ( 0.9 ) — ( 0.7 ) — Net change in cash flow hedges 0.4 ( 0.1 ) ( 0.2 ) — 2.0 ( 0.5 ) 0.5 ( 0.2 ) Defined Benefit Pension Unrealized net losses on defined benefit pension plan — — 0.1 — ( 0.3 ) ( 0.8 ) 0.1 — Net change in defined benefit pension — — 0.1 — ( 0.3 ) ( 0.8 ) 0.1 — Foreign Currency Translation Current period translation adjustments ( 246.8 ) 11.7 3.6 ( 1.7 ) ( 276.5 ) 13.1 9.9 0.4 Net cumulative translation adjustments ( 246.8 ) 11.7 3.6 ( 1.7 ) ( 276.5 ) 13.1 9.9 0.4 Total other comprehensive (loss) income $ ( 246.4 ) $ 11.6 $ 3.5 $ ( 1.7 ) $ ( 274.8 ) $ 11.8 $ 10.5 $ 0.2 |
Variable Interest Entity
Variable Interest Entity | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entity | Variable Interest Entity On July 15, 2021, we entered into an agreement whereby we obtained an 80.2 % interest in DomaniRx, LLC ( “ DomaniRx ” ), a variable interest entity under GAAP. We have the power to direct the majority of the activities of DomaniRx that most significantly impact its economic performance, the obligation to absorb losses and the right to receive benefits from DomaniRx. Accordingly, we determined that we are the primary beneficiary of DomaniRx and consolidate its results. The carrying value of the assets and liabilities associated with DomaniRx included in our condensed consolidated balance sheet as of June 30, 2022, which are limited for use in its operations and do not have recourse against our general credit or our senior secured credit facilities, are as follows: June 30, 2022 Assets: Cash and cash equivalents $ 148.3 Intangible assets 146.3 Other assets 0.1 Liabilities: Other liabilities 8.1 |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Note 10—Revenues We generate revenues primarily through our software-enabled services. Our software-enabled services are generally provided under contracts with initial terms of one to five years that require monthly or quarterly payments and are subject to automatic annual renewal at the end of the initial term unless terminated by either party. We also generate revenues by licensing our software to clients through either perpetual or term licenses and by selling maintenance services. We classify license revenues related to sales-based royalty arrangements as term license revenue. Maintenance services are generally provided under annually renewable contracts. Our pricing typically scales as a function of our clients’ assets under management, the complexity of asset classes managed, the volume of transactions and the level of service the client requires. Revenues from professional services consist mostly of services provided on a time and materials basis. Deferred revenues primarily represent unrecognized fees billed or collected for maintenance and professional services. Deferred revenues are recognized as (or when) we perform under the contract. Deferred revenues are recorded on a net basis with contract assets at the contract level. Accordingly, as of June 30, 2022 and December 31, 2021, approximat ely $ 64.8 m illion and $ 61.0 million, respectively, of deferred revenue is presented net within contract assets arising from the same contracts. The amount of revenues recognized in the period that was included in the opening deferred revenues balance was $ 75.2 million and $ 181.3 millio n for the three and six months ended June 30, 2022 , respectively. The amount of revenues recognized in the period that was included in the opening deferred revenue balance was $ 78.7 million and $ 181.8 million for the three and six months ended June 30, 2021, respectively. As of June 30, 2022, revenue of approximately $ 933.4 million is expected to be recognized from remaining performance obligations for license, maintenance and related revenues, of which $ 480.8 million is expected to be recognized over the next twelve months. We record revenue net of any taxes assessed by governmental authorities. Revenue Disaggregation The following table disaggregates our revenues by geography (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 United States 937.4 $ 894.6 $ 1,860.4 $ 1,773.0 United Kingdom 145.4 155.2 295.6 305.5 Europe (excluding United Kingdom), Middle East and Africa 98.1 85.9 187.6 155.7 Asia-Pacific and Japan 69.4 56.4 130.8 125.4 Canada 54.2 45.3 104.6 93.3 Americas, excluding United States and Canada 24.2 21.6 44.7 39.5 Total $ 1,328.7 $ 1,259.0 $ 2,623.7 $ 2,492.4 The following table disaggregates our revenues by source (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Software-enabled services $ 1,070.7 $ 1,057.1 $ 2,155.9 $ 2,100.5 Maintenance and term licenses 223.8 166.5 402.1 329.7 Professional services 27.0 25.7 53.7 49.2 Perpetual licenses 7.2 9.7 12.0 13.0 Total $ 1,328.7 $ 1,259.0 $ 2,623.7 $ 2,492.4 |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stock Based Compensation | Note 11—Stock Based Compensation S tock options, SARs and PSUs The amount of stock-based compensation expense recognized in our Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 and 2021 was as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, Condensed Consolidated Statements of Comprehensive Income Classification 2022 2021 2022 2021 Cost of software-enabled services $ 17.2 $ 9.7 $ 32.3 $ 20.7 Cost of license, maintenance and other related 1.8 1.4 2.7 3.1 Total cost of revenues 19.0 11.1 35.0 23.8 Selling and marketing 7.6 5.1 15.7 9.7 Research and development 5.3 3.6 10.3 7.2 General and administrative 14.1 7.9 24.9 14.8 Total operating expenses 27.0 16.6 50.9 31.7 Total stock-based compensation expense $ 46.0 $ 27.7 $ 85.9 $ 55.5 The following table summarizes stock option and stock appreciation rights (“SARs”) activity, as well as performance stock units (“PSUs”) activity, for the six months ended June 30, 2022 (shares in millions): Stock Options and SARs PSUs Outstanding at December 31, 2021 44.9 0.4 Granted 0.1 0.9 Cancelled/forfeited ( 0.8 ) — Exercised ( 1.3 ) — Outstanding at June 30, 2022 42.9 1.3 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12—Income Taxes The effective tax rate was 29.1 % and 28.8 % for the three months ended June 30, 2022 and 2021, respectively, and 27.9 % and 27.4 % for the six months ended June 30, 2022 and 2021, respectively. The change in the effective tax rate for the three and six months ended June 30, 2022 compared to the respective prior year periods was primarily due a decrease in recognition of windfall tax benefits from stock awards in the current year, an increase in valuation allowances on deferred tax assets in the current year and a proportionate change in the composition of income before income taxes from foreign and domestic tax jurisdictions. In addition, the effective tax rate for the three and six months ended June 30, 2021 included tax expense related to a law change in the United Kingdom. During the six months ended June 30, 2022 , we recorded a net deferred tax liability of $ 118.9 million related primarily to acquired intangible assets in the allocation of the purchase price for the acquisitions of Blue Prism and Hubwise, which will not be deductible for tax purposes and is partially offset by net operating loss carryforwards. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 13—Earnings per Share The following table sets forth the computation of basic and diluted EPS (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income attributable to SS&C common stockholders $ 110.6 $ 189.8 $ 282.7 $ 364.7 Shares attributable to SS&C: Weighted-average common shares outstanding – used in calculation of basic EPS 254.9 255.7 255.3 256.4 Weighted-average common stock equivalents – stock options and restricted shares 9.0 11.9 10.2 11.4 Weighted-average common and common equivalent shares outstanding – used in calculation of diluted EPS 263.9 267.6 265.5 267.8 Earnings per share attributable to SS&C common stockholders – Basic $ 0.43 $ 0.74 $ 1.11 $ 1.42 Earnings per share attributable to SS&C common stockholders – Diluted $ 0.42 $ 0.71 $ 1.06 $ 1.36 Stock options, SARs and PSUs representing 22.7 mill ion and 16.4 million shares were outstanding for the three and six months ended June 30, 2022 , respectively, but were not included in the computation of diluted EPS because the effect of including them would be anti-dilutive. Stock options, SARs and PSUs representing 8.7 million and 15.8 million shares were outstanding for the three and six months ended June 30, 2021 , respectively, but were not included in the computation of diluted EPS because the effect of including them would be anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14—Commitments and Contingencies From time to time, we are subject to legal proceedings and claims. In our opinion, we are not involved in any litigation or proceedings that would have a material adverse effect on us or our business. Legal Proceedings During the third quarter of 2021, in connection with the ongoing DST ERISA matters and associated legal proceedings described below, including the arbitration awards, we recorded an accrued liability and expense of $ 43.4 million to Other (expense) income, net on the Condensed Consolidated Statement of Comprehensive Income. Due to the inherent uncertainties associated with the resolution of these matters, the ultimate resolution of and any additional potential exposure related to these matters are uncertain at this time. On September 1, 2017, a putative representative action was filed on behalf of the DST 401(k) Profit Sharing Plan (the “Plan”) in the United States District Court for the Southern District of New York, captioned Ferguson, et al v. Ruane Cunniff & Goldfarb Inc., et al. (“Ferguson”), naming as defendants DST, the Compensation Committee of DST’s Board of Directors, the Advisory Committee of the Plan and certain of DST’s present and/or former officers and directors (collectively the “DST Defendants”), alleging breach of fiduciary duties and other violations of the Employee Retirement Income Security Act (“ERISA”). The DST Defendants answered the operative complaint and asserted crossclaims for contribution and/or indemnification against Ruane, Cunniff & Goldfarb Inc.(“Ruane”). On January 9, 2020, Ruane filed an amended answer to the amended complaint and asserted crossclaims for contribution and/or indemnification against DST. Both DST and Ruane have filed answers denying the crossclaims asserted against them. On March 8, 2021, the Court entered an order denying without prejudice the plaintiffs’ (the “Ferguson Plaintiffs”) then-pending motions for leave to file a third amended complaint and for class certification, ordering that the parties address the effect, if any, on the Ferguson Plaintiffs’ motions of the March 4, 2021 decision by the United States Court of Appeals for the Second Circuit Court in Cooper v. Ruane Cunniff & Goldfarb Inc. The Ferguson Plaintiffs renewed their motions for leave to file a third amended complaint and for class certification, which motions were fully briefed on May 10, 2021. On August 17, 2021, the Court entered an order certifying a mandatory, non-opt-out class under Federal Rule of Civil Procedure 23(b)(1) that includes all plan participants other than certain plan fiduciaries. Arbitration Claimants, and the Canfield Plaintiffs and Mendon Plaintiffs, each as defined below, filed petitions under Federal Rule of Civil Procedure 23(f) with the Second Circuit on August 30, 2021 and August 31, 2021, respectively, seeking interlocutory review of the Ferguson class certification order, which the Ferguson Plaintiffs and the DST Defendants opposed. The Second Circuit denied the Rule 23(f) petitions on May 24, 2022 and May 25, 2022, respectively. On August 23, 2021, the DST Defendants moved for a temporary restraining order and preliminary injunction against other proceedings, including the below-described arbitrations, which arise out of or relate to the allegations in Ferguson. Following briefing, on November 18, 2021, the Court granted the DST Defendants’ motion and entered a preliminary injunction enjoining the Ferguson class members, including Arbitration Claimants, from instituting new actions or litigating in arbitration or other proceedings against the DST Defendants matters arising out of or relating to the facts or transactions alleged in the Ferguson amended complaint. On November 18, 2021, the Court also ordered the DST Defendants and Arbitration Claimants to submit briefing regarding how the arbitration awards that have been entered against the DST Defendants should be handled in light of the Court’s class certification order and preliminary injunction. On December 15, 2021, Arbitration Claimants and the Canfield Plaintiffs and Mendon Plaintiffs filed appeals of the Court’s preliminary injunction. On December 23, 2021, the DST Defendants, Arbitration Claimants, and the Ferguson Plaintiffs submitted briefs concerning the treatment of the arbitration awards that have been entered against the DST Defendants, and further briefing by the DST Defendants and Arbitration Claimants was submitted on January 26, 2022. On December 31, 2021, Arbitration Claimants moved by order to show cause for an immediate stay of the preliminary injunction pending their appeal to the Second Circuit. On January 3, 2022, the Court denied Arbitration Claimants' motion for an immediate stay and ordered the DST Defendants to show cause as to why the Court should not issue a stay of the preliminary injunction pending appeal. The show-cause order was fully briefed on January 10, 2022. On February 3, 2022, the Court denied Arbitration Claimants’ motion to stay the preliminary injunction pending appeal. In the same order, the Court held that it would determine the status of the arbitration awards already entered against DST at final judgment in the Ferguson action, either after trial or after settlement. On February 4, 2022, Arbitration Claimants filed a motion in the Second Circuit to stay the preliminary injunction pending their appeal of the Court’s preliminary injunction. On June 7, 2022, the Second Circuit denied Arbitration Claimants’ motion to stay the preliminary injunction pending appeal. On February 8, 2022, Arbitration Claimants and the Canfield and Mendon Plaintiffs noticed an appeal of the Court’s February 3, 2022 order. The February 8, 2022 appeal was consolidated with the December 15, 2021 appeal of the preliminary injunction. On May 17, 2022, Arbitration Claimants and the Canfield and Mendon Plaintiffs filed their opening brief in the consolidated appeals. The DST Defendants’ answering brief is due on September 15, 2022. On July 10, 2020, the Ferguson Plaintiffs and the DST Defendants reached an agreement in principle to settle the class claims for $ 27 million, subject to the occurrence of certain conditions, including: Court certification of a “non‑opt-out” class in the case that includes as class members all participants of the Plan, Court approval of the settlement in accordance with applicable law and the satisfactory resolution of claims made by certain other litigants. On September 18, 2020, the parties submitted a letter to the Court disclosing that the Ferguson Plaintiffs and Ruane also had reached a settlement in principle, subject to Court approval. The Ferguson Plaintiffs and the DST Defendants entered into a settlement agreement dated January 8, 2021 memorializing the terms of their proposed settlement, which was filed by the Ferguson Plaintiffs with the Court on the same date. On January 12, 2021, the Ferguson Plaintiffs moved for preliminary approval of the settlement with the DST Defendants, as well as preliminary approval of a separate settlement reached between the Ferguson Plaintiffs and Ruane. Arbitration Claimants and the U.S. Department of Labor (“DOL”) objected to various aspects of those settlements in filings dated January 15, 2021, January 27, 2021, and February 5, 2021. On August 17, 2021, the Court denied the Ferguson Plaintiffs’ motion for preliminary approval of the settlement on the terms proposed. On September 28, 2018, a complaint was filed in the United States District Court for the Southern District of New York captioned Robert Canfield, et al. v. SS&C Technologies Holdings, Inc., et al., on behalf of five individual plaintiffs (the “Canfield Plaintiffs”). On November 5, 2018, a similar complaint was filed in the United States District Court for the Southern District of New York captioned Mark Mendon, et al. v. SS&C Technologies Holdings, Inc., et al., on behalf of two individual plaintiffs (the “Mendon Plaintiffs”). These complaints name as defendants SS&C, the DST Defendants, and Ruane. The underlying claim in each complaint is the same as in the above-described Ferguson matter, with the exception that these actions purport to be brought as individual actions and not putative class actions. On July 10, 2020, the Court entered an order granting the DST Defendants’ motion to disqualify plaintiffs’ counsel in the Canfield and Mendon actions. On March 17, 2021, the Court issued an opinion and order denying the DST Defendants’ motion to disqualify counsel from the arbitrations described below. On April 12, 2021, the Canfield Plaintiffs and Mendon Plaintiffs filed notices of voluntary dismissal dismissing their claims against Ruane with prejudice, which were entered by the Court on April 13, 2021. On April 22, 2021, the DST Defendants filed motions to dismiss the Canfield and Mendon actions. Those motions were fully briefed on May 28, 2021. On November 19, 2021, the Court dismissed the Canfield and Mendon actions. On December 17, 2021, the Canfield Plaintiffs and Mendon Plaintiffs appealed the Court’s November 19, 2021 orders dismissing their respective actions to the Second Circuit. On May 17, 2022, the Canfield Plaintiffs and Mendon Plaintiffs filed their opening briefs in those appeals. The DST Defendants’ answering briefs are due on September 15, 2022. On October 8, 2019, a substantially similar action to the above-described Ferguson, Canfield, Mendon and below-described arbitration matters captioned Scalia v. Ruane, Cunniff & Goldfarb Inc. was filed by the DOL in the United States District Court for the Southern District of New York naming as defendants DST, the Advisory Committee of the Plan, the Compensation Committee of DST’s Board of Directors and certain of DST’s former officers and directors, and alleging that the DST Defendants breached fiduciary duties in violation of ERISA in connection with the Plan. The complaint also names as defendants Ruane and its former Chairman and Chief Executive Officer Robert D. Goldfarb. In the complaint, the DOL seeks disgorgement, damages and any other appropriate injunctive or equitable relief. The DST Defendants moved to dismiss the complaint on December 4, 2020 on the ground that the DOL’s complaint is time-barred. Other defendants also filed motions to dismiss on the same and other grounds. Briefing on the motions to dismiss was completed on February 5, 2021. On March 28, 2022, the court denied Defendants’ motions to dismiss, and Martin J. Walsh was substituted for Eugene Scalia as the plaintiff. On April 11, 2022, the DST Defendants answered the DOL’s complaint. DST, the Advisory Committee of the Plan, and the Compensation Committee of DST’s Board of Directors have been named in 579 substantially similar individual demands for arbitration to date, by former and current DST employees demanding arbitration under the DST Employee Arbitration Program and Agreement (the “Arbitration Claimants”). The underlying claim in each is the same as in the above-described Ferguson matter, with the exception that the arbitrations purport to be brought as individual actions. On November 24, 2021, in light of the preliminary injunction entered in Ferguson discussed above, the American Arbitration Association ceased administration of the arbitrations brought by members of the Ferguson class, which includes all of the Arbitration Claimants with the exception of certain former Plan fiduciaries. As of November 24, 2021, 557 demands for arbitration had been submitted to the American Arbitration Association (the “AAA”). As of the date on which the preliminary injunction was entered, those individual arbitrations were at various stages depending on the particular proceeding. Certain of those arbitrations had resulted in awards against DST and others had resulted in decisions finding no liability as against DST. Many of those decisions were subject to further appeal within the AAA. Certain of the arbitration proceedings had been resolved in whole or in part by settlement. Since November 24, 2021, the AAA has administered only those arbitration proceedings associated with claimants who are not members of the Ferguson class, certain of which have resulted in awards against DST. Between August 20, 2021 and November 17, 2021, counsel for Arbitration Claimants filed 177 motions to confirm certain of the arbitration awards. DST filed responses to those motions. Between October 4 and December 22, 2021, the Western District of Missouri issued orders confirming those 177 arbitration awards and entering judgments against DST. DST has appealed those judgments to the Eighth Circuit. On November 20, 2021, DST requested that the Eighth Circuit stay the pending appeals in light of the preliminary injunction entered in Ferguson. On December 3, 2021, the Eighth Circuit ordered the parties to brief DST’s stay request. On December 17, 2021, Arbitration Claimants and DST filed with the Eighth Circuit their respective briefs addressing the DST’s stay request. On January 3, 2022, the Eighth Circuit declined to stay the briefing schedule on the pending appeals and consolidated those appeals. DST filed its opening brief in the Eighth Circuit on March 24, 2022. Arbitration Claimants filed their opposition brief on April 26, 2022, and DST filed its reply brief on May 18, 2022. The Eighth Circuit heard oral argument on June 14, 2022, and those appeals remain pending. On November 9, 2021, counsel for Arbitration Claimants filed in the Western District of Missouri a petition to compel arbitration captioned Addison v. DST Systems, Inc. (the “Addison Petition”) on behalf of 155 Arbitration Claimants, which DST opposed. On February 14, 2022, the Western District of Missouri stayed the Addison Petition pending resolution of DST’s appeals of the confirmation of the 177 arbitration awards to the Eighth Circuit. We continue to vigorously defend these matters. On November 11, 2020, DST, the Compensation Committee of DST’s Board of Directors, and the Advisory Committee of the Plan as plaintiffs filed a complaint in the United States District Court for the Southern District of New York against Ruane, certain of its related entities, and certain of its current and former employees. The complaint asserts claims for contribution, indemnification, and breach of contract arising out of Ruane’s management of the Plan’s investments and claims for actual and constructive fraudulent conveyances. On May 24, 2021, Defendant Robert Goldfarb filed an answer to the complaint. On September 17, 2021, the remaining defendants filed a pre-motion letter requesting permission to file a motion to dismiss the complaint. On September 22, 2021, the DST plaintiffs responded to the remaining defendants’ pre-motion letter. On November 5, 2021, the Court denied the remaining defendants’ request for a pre-motion conference and granted the remaining defendants leave to file a motion to dismiss. On December 17, 2021, the remaining defendants filed a motion to dismiss the DST plaintiffs’ complaint. On July 27, 2022, the Court denied without prejudice the pending motion to dismiss, and ordered the parties to submit by October 3, 2022 a joint status report with a new briefing schedule on the motion. |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity Policy | The accompanying unaudited condensed consolidated financial statements include the accounts of SS&C Technologies Holdings, Inc. and its subsidiaries, including a variable interest entity (“VIE”) for which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncement In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities From Contracts with Customers . ASU 2021-08 requires companies to apply ASC 606 to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination on the acquisition date. Generally, this new guidance will result in an acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Under current GAAP, we have historically recognized contract assets and contract liabilities acquired in a business combination at fair value. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. ASU 2021-08 should be applied prospectively to business combinations that occur after the effective date. We adopted ASU 2021-08 as of January 1, 2022 on a prospective basis. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows. |
Recent Accounting Pronouncements Not Yet Effective | Recent Accounting Pronouncement Not Yet Effective In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-04 provides optional expedients and exceptions for applying GAAP if certain criteria are met to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. In January 2021, the FASB issued Update 2021-01, Reference Rate Reform (Topic 848): Scope . The update provides additional optional guidance on the transition from LIBOR to include derivative instruments that use an interest rate for margining, discounting or contract price alignment. The standard will ease, if warranted, the requirements for accounting for the future effects of the rate reform. An entity may elect to apply the amendments prospectively to contract modifications made on or before December 31, 2022. A substantial portion of our indebtedness bears interest at variable interest rates, primarily based on USD-LIBOR. We continue to monitor the impact the discontinuance of LIBOR or another reference rate will have on our contracts, hedging relationships and other transactions. We are currently assessing the impact of this standard on our financial condition and results of operations. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment and Related Accumulated Depreciation | Property, plant and equipment and the related accumulated depreciation are as follows (in millions): June 30, December 31, 2022 2021 Land $ 39.4 $ 49.8 Building and improvements 285.4 307.5 Equipment, furniture, and fixtures 506.8 475.4 831.6 832.7 Less: accumulated depreciation ( 475.1 ) ( 450.7 ) Total property, plant and equipment, net $ 356.5 $ 382.0 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Investments are as follows (in millions): June 30, December 31, 2022 2021 Non-marketable equity securities $ 84.5 $ 84.5 Seed capital investments 34.0 32.0 Marketable equity securities 26.8 40.8 Partnership interests in private equity funds 14.8 15.5 Total investments $ 160.1 $ 172.8 |
Schedule of Realized and Unrealized Gains and Losses on Investments | Realized and unrealized gains and losses for our equity securities are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Unrealized (losses) gains on equity securities held as of the end of the period $ ( 7.7 ) $ 3.1 $ ( 11.6 ) $ 8.9 Realized (losses) gains for equity securities sold during the period ( 0.2 ) 0.6 ( 0.5 ) 7.7 Total (losses) gains recognized in other income, net $ ( 7.9 ) $ 3.7 $ ( 12.1 ) $ 16.6 |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present assets and liabilities measured at fair value on a recurring basis (in millions): Fair Value Measurements at Reporting Date Using June 30, 2022 Quoted prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market funds (1) $ 1,242.6 $ 1,242.6 $ — $ — Seed capital investments (2) 34.0 34.0 — — Marketable equity securities (2) 26.8 26.8 — — Deferred compensation liabilities (3) ( 14.2 ) ( 14.2 ) — — Total $ 1,289.2 $ 1,289.2 $ — $ — Fair Value Measurements at Reporting Date Using December 31, 2021 Quoted prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market funds (1) $ 1,961.0 $ 1,961.0 $ — $ — Seed capital investments (2) 32.0 32.0 — — Marketable equity securities (2) 40.8 40.8 — — Deferred compensation liabilities (3) ( 21.3 ) ( 21.3 ) — — Total $ 2,012.5 $ 2,012.5 $ — $ — |
Unconsolidated Affiliates (Tabl
Unconsolidated Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments in Unconsolidated Affiliates | Investments in unconsolidated affiliates are as follows (in millions): June 30, 2022 December 31, 2021 Ownership Percentage Carrying Value Excess carrying value of investment over proportionate share of net assets Carrying Value Excess carrying value of investment over proportionate share of net assets International Financial Data Services L.P. 50.0 % $ 86.7 $ 36.5 $ 87.8 $ 38.2 Orbit Private Investments L.P. 9.8 % 86.0 — 86.0 — Pershing Road Development Company, LLC 50.0 % 76.1 64.1 74.0 65.9 Broadway Square Partners, LLP 50.0 % 55.5 30.4 54.3 29.8 Other unconsolidated affiliates 3.9 — 4.0 — Total $ 308.2 $ 131.0 $ 306.1 $ 133.9 |
Schedule of Equity in Earnings of Unconsolidated Affiliates | Equity in earnings of unconsolidated affiliates, net are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 International Financial Data Services L.P. $ 0.6 $ 0.5 $ 1.1 $ 2.1 Pershing Road Development Company, LLC ( 0.2 ) 0.3 0.1 1.2 Broadway Square Partners, LLP 0.7 0.4 1.2 0.8 Other unconsolidated affiliates — ( 1.6 ) — ( 4.2 ) Total $ 1.1 $ ( 0.4 ) $ 2.4 $ ( 0.1 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Summary of Allocation of Purchase Price for Acquisitions of Acquiree | The fair values of the acquired intangible assets, and the related evaluation of taxes, are provisional pending receipt of the final valuation for those assets. The valuation of the acquired liabilities is also preliminary. Blue Prism Hubwise Accounts receivable $ 50.1 $ 0.7 Property, plant and equipment 1.9 0.1 Other assets 10.4 0.3 Operating lease right-of-use assets 4.4 0.3 Customer relationships 520.0 23.0 Completed technologies 250.0 8.7 Trade names 38.0 1.0 Goodwill 945.3 50.5 Accounts payable ( 6.6 ) ( 0.2 ) Accrued employee compensation and benefits ( 23.2 ) — Deferred revenue ( 166.9 ) — Deferred income taxes ( 110.7 ) ( 8.2 ) Other liabilities assumed ( 35.2 ) ( 0.7 ) Consideration paid, net of cash acquired $ 1,477.5 $ 75.5 |
Schedule of Severance Expense Recognized | The amount of severance expense recognized in our Condensed Consolidated Statements of Comprehensive Income for the six months ended June 30, 2022 and 2021 was as follows (in millions): Six Months Ended June 30, Consolidated Statements of Comprehensive Income Classification 2022 2021 Cost of software-enabled services $ 3.8 $ 14.1 Cost of license, maintenance and other related 0.7 1.2 Total cost of revenues 4.5 15.3 Selling and marketing 1.2 1.2 Research and development 0.8 5.8 General and administrative - 0.6 Total operating expenses 2.0 7.6 Total severance expense $ 6.5 $ 22.9 |
Summary of Unaudited Pro Forma Information | This unaudited pro forma information (in millions) should not be relied upon as being indicative of the historical results that would have been obtained if the acquisitions had actually occurred on those dates, nor of the results that may be obtained in the future. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues $ 1,329.2 $ 1,320.0 $ 2,681.4 $ 2,618.1 Net income $ 110.7 $ 165.3 $ 267.3 $ 283.7 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Change in Carrying Value of Goodwill | The change in carrying value of goodwill as of and for the six months ended June 30, 2022 is as follows (in millions): Balance at December 31, 2021 $ 8,045.5 Acquisitions completed in the current year 1,002.0 Adjustments to prior acquisitions 0.3 Effect of foreign currency translation ( 181.0 ) Balance at June 30, 2022 $ 8,866.8 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Component of Debt | At June 30, 2022 and December 31, 2021, debt consisted of the following (in millions): June 30, December 31, 2022 2021 Senior secured credit facilities, weighted-average interest rate of 3.54 % and 1.85 %, respectively $ 5,350.5 $ 3,974.5 5.5 % senior notes due 2027 2,000.0 2,000.0 Other indebtedness 1.2 5.2 Unamortized original issue discount and debt issuance costs ( 59.4 ) ( 30.8 ) 7,292.3 5,948.9 Less: current portion of long-term debt 57.8 47.4 Long-term debt $ 7,234.5 $ 5,901.5 |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of financial instruments are as follows (in millions): June 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Amount Value Amount Value Financial liabilities: Senior secured credit facilities $ 5,350.5 $ 5,112.2 $ 3,974.5 $ 3,943.5 5.5% senior notes due 2027 2,000.0 1,871.4 2,000.0 2,094.8 Senior secured credit facilities, revolving portion — — — — Other indebtedness 1.2 1.2 5.2 5.2 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss Balances, Net of Tax | Accumulated other comprehensive loss balances, net of tax, consists of the following (in millions): Interest Rate Swap Foreign Currency Translation Defined Benefit Obligation Accumulated Other Comprehensive Loss Balance, December 31, 2021 $ ( 4.8 ) $ ( 237.4 ) $ 0.2 $ ( 242.0 ) Net current period other comprehensive income (loss) 1.5 ( 263.4 ) ( 1.1 ) ( 263.0 ) Balance, June 30, 2022 $ ( 3.3 ) $ ( 500.8 ) $ ( 0.9 ) $ ( 505.0 ) |
Schedule of Adjustments to Accumulated Other Comprehensive Loss | Adjustments to accumulated other comprehensive loss are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Pretax Tax Effect Pretax Tax Effect Pretax Tax Effect Pretax Tax Effect Interest Rate Swap Unrealized gains (losses) on interest rate swaps $ ( 0.3 ) $ ( 0.1 ) $ ( 1.0 ) $ — $ 2.9 $ ( 0.5 ) $ 1.2 $ ( 0.2 ) Reclassification of losses into net earnings on interest rate swaps 0.7 — 0.8 — ( 0.9 ) — ( 0.7 ) — Net change in cash flow hedges 0.4 ( 0.1 ) ( 0.2 ) — 2.0 ( 0.5 ) 0.5 ( 0.2 ) Defined Benefit Pension Unrealized net losses on defined benefit pension plan — — 0.1 — ( 0.3 ) ( 0.8 ) 0.1 — Net change in defined benefit pension — — 0.1 — ( 0.3 ) ( 0.8 ) 0.1 — Foreign Currency Translation Current period translation adjustments ( 246.8 ) 11.7 3.6 ( 1.7 ) ( 276.5 ) 13.1 9.9 0.4 Net cumulative translation adjustments ( 246.8 ) 11.7 3.6 ( 1.7 ) ( 276.5 ) 13.1 9.9 0.4 Total other comprehensive (loss) income $ ( 246.4 ) $ 11.6 $ 3.5 $ ( 1.7 ) $ ( 274.8 ) $ 11.8 $ 10.5 $ 0.2 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Summary of Assets and Liabilities | The carrying value of the assets and liabilities associated with DomaniRx included in our condensed consolidated balance sheet as of June 30, 2022, which are limited for use in its operations and do not have recourse against our general credit or our senior secured credit facilities, are as follows: June 30, 2022 Assets: Cash and cash equivalents $ 148.3 Intangible assets 146.3 Other assets 0.1 Liabilities: Other liabilities 8.1 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues by Geography and Source | The following table disaggregates our revenues by geography (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 United States 937.4 $ 894.6 $ 1,860.4 $ 1,773.0 United Kingdom 145.4 155.2 295.6 305.5 Europe (excluding United Kingdom), Middle East and Africa 98.1 85.9 187.6 155.7 Asia-Pacific and Japan 69.4 56.4 130.8 125.4 Canada 54.2 45.3 104.6 93.3 Americas, excluding United States and Canada 24.2 21.6 44.7 39.5 Total $ 1,328.7 $ 1,259.0 $ 2,623.7 $ 2,492.4 The following table disaggregates our revenues by source (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Software-enabled services $ 1,070.7 $ 1,057.1 $ 2,155.9 $ 2,100.5 Maintenance and term licenses 223.8 166.5 402.1 329.7 Professional services 27.0 25.7 53.7 49.2 Perpetual licenses 7.2 9.7 12.0 13.0 Total $ 1,328.7 $ 1,259.0 $ 2,623.7 $ 2,492.4 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Stock-Based Compensation Expense Recognized | The amount of stock-based compensation expense recognized in our Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 and 2021 was as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, Condensed Consolidated Statements of Comprehensive Income Classification 2022 2021 2022 2021 Cost of software-enabled services $ 17.2 $ 9.7 $ 32.3 $ 20.7 Cost of license, maintenance and other related 1.8 1.4 2.7 3.1 Total cost of revenues 19.0 11.1 35.0 23.8 Selling and marketing 7.6 5.1 15.7 9.7 Research and development 5.3 3.6 10.3 7.2 General and administrative 14.1 7.9 24.9 14.8 Total operating expenses 27.0 16.6 50.9 31.7 Total stock-based compensation expense $ 46.0 $ 27.7 $ 85.9 $ 55.5 |
Summary of Stock Option and Stock Appreciation Rights ("SARs") Restricted Stock Units ("RSUs") and Performance Stock Units ("PSU") Activity | The following table summarizes stock option and stock appreciation rights (“SARs”) activity, as well as performance stock units (“PSUs”) activity, for the six months ended June 30, 2022 (shares in millions): Stock Options and SARs PSUs Outstanding at December 31, 2021 44.9 0.4 Granted 0.1 0.9 Cancelled/forfeited ( 0.8 ) — Exercised ( 1.3 ) — Outstanding at June 30, 2022 42.9 1.3 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted EPS (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income attributable to SS&C common stockholders $ 110.6 $ 189.8 $ 282.7 $ 364.7 Shares attributable to SS&C: Weighted-average common shares outstanding – used in calculation of basic EPS 254.9 255.7 255.3 256.4 Weighted-average common stock equivalents – stock options and restricted shares 9.0 11.9 10.2 11.4 Weighted-average common and common equivalent shares outstanding – used in calculation of diluted EPS 263.9 267.6 265.5 267.8 Earnings per share attributable to SS&C common stockholders – Basic $ 0.43 $ 0.74 $ 1.11 $ 1.42 Earnings per share attributable to SS&C common stockholders – Diluted $ 0.42 $ 0.71 $ 1.06 $ 1.36 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment and Related Accumulated Depreciation (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 831.6 | $ 832.7 |
Less: accumulated depreciation | (475.1) | (450.7) |
Total property, plant and equipment, net | 356.5 | 382 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 39.4 | 49.8 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 285.4 | 307.5 |
Equipment, Furniture, and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 506.8 | $ 475.4 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 19 | $ 19.5 | $ 38.2 | $ 44.4 |
Prepaid Expenses and Other Current Assets [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment assets, net held for sale | 10.6 | 10.6 | ||
Accounts payable and other accrued expenses | $ 19.2 | $ 19.2 |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Total investments | $ 160.1 | $ 172.8 |
Non Marketable Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 84.5 | 84.5 |
Marketable Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 26.8 | 40.8 |
Seed Capital Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 34 | 32 |
Partnership Interests in Private Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | $ 14.8 | $ 15.5 |
Investments - Schedule of Reali
Investments - Schedule of Realized and Unrealized Gains and Losses on Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized (losses) gains on equity securities held as of the end of the period | $ (7.7) | $ 3.1 | $ (11.6) | $ 8.9 |
Realized (losses) gains for equity securities sold during the period | (0.2) | 0.6 | (0.5) | 7.7 |
Total (losses) gains recognized in other income, net | $ (7.9) | $ 3.7 | $ (12.1) | $ 16.6 |
Investments - Summary of Assets
Investments - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | |||
Deferred compensation liabilities | [1] | $ (14.2) | $ (21.3) |
Total | 1,289.2 | 2,012.5 | |
Money Market Funds [Member] | |||
Schedule of Investments [Line Items] | |||
Investments measured at fair value | [2] | 1,242.6 | 1,961 |
Marketable Equity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Investments measured at fair value | [3] | 26.8 | 40.8 |
Seed Capital Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Investments measured at fair value | [3] | 34 | 32 |
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Schedule of Investments [Line Items] | |||
Deferred compensation liabilities | [1] | (14.2) | (21.3) |
Total | 1,289.2 | 2,012.5 | |
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | |||
Schedule of Investments [Line Items] | |||
Investments measured at fair value | [2] | 1,242.6 | 1,961 |
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | Marketable Equity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Investments measured at fair value | [3] | 26.8 | 40.8 |
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | Seed Capital Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Investments measured at fair value | [3] | $ 34 | $ 32 |
[1] Included in Other long-term liabilities on the Condensed Consolidated Balance Sheet Included in Cash and cash equivalents and Funds receivable and funds held on behalf of clients on the Condensed Consolidated Balance Sheet. Included in Investments on the Condensed Consolidated Balance Sheet |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Total investments | $ 160.1 | $ 172.8 |
Partnership Interests in Private Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 14.8 | 15.5 |
Investments, fair value | 12 | 12.7 |
Equity method investments, fair value | $ 2.8 | $ 2.8 |
Unconsolidated Affiliates - Sch
Unconsolidated Affiliates - Schedule of Investments in Unconsolidated Affiliates (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Carrying Value | $ 308.2 | $ 306.1 |
Excess carrying value of investment over proportionate share of net assets | $ 131 | 133.9 |
International Financial Data Services L.P. [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50% | |
Carrying Value | $ 86.7 | 87.8 |
Excess carrying value of investment over proportionate share of net assets | $ 36.5 | 38.2 |
Orbit Private Investments Limited Partners [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 9.80% | |
Carrying Value | $ 86 | 86 |
Excess carrying value of investment over proportionate share of net assets | $ 0 | 0 |
Pershing Road Development Company, LLC [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50% | |
Carrying Value | $ 76.1 | 74 |
Excess carrying value of investment over proportionate share of net assets | $ 64.1 | 65.9 |
Broadway Square Partners, LLP [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50% | |
Carrying Value | $ 55.5 | 54.3 |
Excess carrying value of investment over proportionate share of net assets | 30.4 | 29.8 |
Other Unconsolidated Affiliates [Member] | ||
Schedule of Investments [Line Items] | ||
Carrying Value | 3.9 | 4 |
Excess carrying value of investment over proportionate share of net assets | $ 0 | $ 0 |
Unconsolidated Affiliates - S_2
Unconsolidated Affiliates - Schedule of Equity in Earnings of Unconsolidated Affiliates (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Investments [Line Items] | ||||
Equity in earnings of unconsolidated affiliates, net | $ 1.1 | $ (0.4) | $ 2.4 | $ (0.1) |
International Financial Data Services L.P. [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity in earnings of unconsolidated affiliates, net | 0.6 | 0.5 | 1.1 | 2.1 |
Pershing Road Development Company, LLC [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity in earnings of unconsolidated affiliates, net | (0.2) | 0.3 | 0.1 | 1.2 |
Broadway Square Partners, LLP [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity in earnings of unconsolidated affiliates, net | 0.7 | 0.4 | 1.2 | 0.8 |
Other Unconsolidated Affiliates [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity in earnings of unconsolidated affiliates, net | $ 0 | $ (1.6) | $ 0 | $ (4.2) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Mar. 25, 2022 | Mar. 16, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | May 31, 2022 | |
Business Acquisition [Line Items] | |||||||
Revenues | $ 1,328.7 | $ 1,259 | $ 2,623.7 | $ 2,492.4 | |||
Blue Prism [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, effective date of acquisition | Mar. 16, 2022 | ||||||
Consideration paid, net of cash plus the costs of transaction | $ 1,600 | ||||||
Revenues | 62.8 | 73.6 | |||||
Increase in customer relationships | 28.1 | 28.1 | |||||
Increase in completed technologies | 4 | ||||||
Decrease in deferred tax liabilities | 15.1 | ||||||
Decreases in trade names | 3 | ||||||
Hubwise Holdings Limited [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, effective date of acquisition | Mar. 25, 2022 | ||||||
Consideration paid, net of cash plus the costs of transaction | $ 75 | ||||||
Revenues | 1.6 | 1.7 | |||||
Increase in customer relationships | 2.8 | 2.8 | |||||
Increase in completed technologies | 14.2 | ||||||
Decrease in deferred tax liabilities | 4 | ||||||
Minerals Management, LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Asset Acquisition Acquired, Amount | $ 18 | ||||||
Minerals Management, LLC [Member] | Exchange Traded Funds [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Asset Acquisition Acquired, Amount | $ 28.3 | $ 28.3 |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Price for Acquisitions of Acquiree (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 25, 2022 | Mar. 16, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 8,866.8 | $ 8,866.8 | $ 8,045.5 | ||
Hubwise Holdings Limited [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | $ 0.7 | ||||
Property, plant and equipment | 0.1 | ||||
Other assets | 0.3 | ||||
Operating lease right-of-use assets | 0.3 | ||||
Goodwill | 50.5 | ||||
Accounts payable | (0.2) | ||||
Accrued employee compensation and benefits | 0 | ||||
Deferred revenue | 0 | ||||
Deferred income taxes | (8.2) | ||||
Other liabilities assumed | (0.7) | ||||
Consideration paid, net of cash acquired | 75.5 | ||||
Hubwise Holdings Limited [Member] | Acquired Client Relationships and Contracts | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | 23 | ||||
Hubwise Holdings Limited [Member] | Completed technologies | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | 8.7 | ||||
Hubwise Holdings Limited [Member] | Trade names | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 1 | ||||
Blue Prism [Member] | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | $ 50.1 | ||||
Property, plant and equipment | 1.9 | ||||
Other assets | 10.4 | ||||
Operating lease right-of-use assets | 4.4 | ||||
Goodwill | 945.3 | ||||
Accounts payable | (6.6) | ||||
Accrued employee compensation and benefits | (23.2) | ||||
Deferred revenue | (166.9) | ||||
Deferred income taxes | (110.7) | ||||
Other liabilities assumed | (35.2) | ||||
Consideration paid, net of cash acquired | 1,477.5 | ||||
Blue Prism [Member] | Acquired Client Relationships and Contracts | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | 520 | ||||
Blue Prism [Member] | Completed technologies | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | 250 | ||||
Blue Prism [Member] | Trade names | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 38 |
Acquisitions - Schedule of Seve
Acquisitions - Schedule of Severance Expense Recognized (Detail) - DST and Algorithmics [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | $ 6.5 | $ 22.9 |
Total Cost of Revenues [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 4.5 | 15.3 |
Total Cost of Revenues [Member] | Software-enabled Services [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 3.8 | 14.1 |
Total Cost of Revenues [Member] | License, Maintenance and Related [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 0.7 | 1.2 |
Selling and Marketing [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 1.2 | 1.2 |
Research and Development [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 0.8 | 5.8 |
General and Administrative [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 0.6 | |
Total Operating Expenses [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | $ 2 | $ 7.6 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Combinations [Abstract] | ||||
Revenues | $ 1,329.2 | $ 1,320 | $ 2,681.4 | $ 2,618.1 |
Net income | $ 110.7 | $ 165.3 | $ 267.3 | $ 283.7 |
Goodwill - Summary of Change in
Goodwill - Summary of Change in Carrying Value of Goodwill (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 8,045.5 |
Acquisitions completed in the current year | 1,002 |
Adjustments to prior acquisitions | 0.3 |
Effect of foreign currency translation | (181) |
Ending balance | $ 8,866.8 |
Debt - Component of Debt (Detai
Debt - Component of Debt (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Other indebtedness | $ 1.2 | $ 5.2 |
Unamortized original issue discount and debt issuance costs | (59.4) | (30.8) |
Debt | 7,292.3 | 5,948.9 |
Less: current portion of long-term debt | 57.8 | 47.4 |
Long-term debt | 7,234.5 | 5,901.5 |
Secured Debt [Member] | Senior Secured Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Carrying Amount | 5,350.5 | 3,974.5 |
Senior Notes [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Carrying Amount | $ 2,000 | $ 2,000 |
Debt - Component of Debt (Paren
Debt - Component of Debt (Parenthetical) (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Secured Debt [Member] | Senior Secured Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Debt, weighted-average interest rate of credit facility | 3.54% | 1.85% |
Senior Notes [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 5.50% | 5.50% |
Debt, due date | 2027 | 2027 |
Debt (Additional Information) (
Debt (Additional Information) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Mar. 22, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | Mar. 22, 2029 | ||
Debt Instrument Interest Rate Terms | The Incremental Term Loans mature on March 22, 2029 and bear interest at, at our option, the Base Rate, plus 1.25% per annum or the Term Secured Overnight Financing Rate (“SOFR”), which is subject to a floor of 0.50%, plus a credit spread adjustment set forth in the Credit Agreement, plus 2.25% per annum. The Incremental Term Loans are also subject to a 1.00% repricing premium | ||
Senior Secured Credit Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Capitalized financing costs | $ 37.7 | ||
Secured Debt [Member] | Senior Secured Credit Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 5,350.5 | $ 3,974.5 | |
Secured Debt [Member] | Senior Secured Credit Facility Term Loan B-6 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 650 | ||
Secured Debt [Member] | Senior Secured Credit Facility Term Loan B-7 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Carrying Amount | $ 880 |
Debt - Schedule of Carrying Amo
Debt - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Carrying Amount [Member] | Senior Secured Credit Facilities [Member] | ||
Financial liabilities: | ||
Credit facility | $ 5,350.5 | $ 3,974.5 |
Carrying Amount [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Financial liabilities: | ||
Senior notes | 2,000 | 2,000 |
Carrying Amount [Member] | Senior Secured Credit Facilities Revolving Portion [Member] | ||
Financial liabilities: | ||
Credit facility | 0 | |
Carrying Amount [Member] | Other Indebtedness [Member] | ||
Financial liabilities: | ||
Credit facility | 1.2 | 5.2 |
Fair Value [Member] | Senior Secured Credit Facilities [Member] | ||
Financial liabilities: | ||
Credit facility | 5,112.2 | 3,943.5 |
Fair Value [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Financial liabilities: | ||
Credit facility | 1,871.4 | 2,094.8 |
Fair Value [Member] | Senior Secured Credit Facilities Revolving Portion [Member] | ||
Financial liabilities: | ||
Credit facility | 0 | |
Fair Value [Member] | Other Indebtedness [Member] | ||
Financial liabilities: | ||
Credit facility | $ 1.2 | $ 5.2 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Class of Stock [Line Items] | ||||||||
Payments for repurchase of common stock | $ 0 | $ 143.6 | $ 170.9 | $ 325 | ||||
Quarterly cash dividend paid | $ 0.20 | $ 0.20 | $ 0.16 | $ 0.16 | ||||
Dividends paid on common stock | $ 102.4 | $ 82.1 | ||||||
Stock Repurchase Program [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Repurchase of common stock , shares | 0 | 2,000,000 | 2,300,000 | 4,700,000 | ||||
Payments for repurchase of common stock | $ 143.6 | $ 170.9 | $ 325 | |||||
Maximum [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 1,000 | $ 1,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Loss Balances, Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ 6,165.4 | |||
Net current period other comprehensive income (loss) | $ (234.8) | $ 1.8 | (263) | $ 10.7 |
Ending balance | 6,055.4 | 6,055.4 | ||
Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (4.8) | |||
Net current period other comprehensive income (loss) | 1.5 | |||
Ending balance | (3.3) | (3.3) | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (237.4) | |||
Net current period other comprehensive income (loss) | (263.4) | |||
Ending balance | (500.8) | (500.8) | ||
Accumulated Other Comprehensive (Loss) Income [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (242) | |||
Net current period other comprehensive income (loss) | (263) | |||
Ending balance | (505) | (505) | ||
Defined Benefit Obligation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 0.2 | |||
Net current period other comprehensive income (loss) | (1.1) | |||
Ending balance | $ (0.9) | $ (0.9) |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Adjustments to Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent, Total | $ (246.4) | $ 3.5 | $ (274.8) | $ 10.5 |
Other comprehensive (loss) income, Tax Effect | 11.6 | (1.7) | 11.8 | 0.2 |
Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Unrealized gain(loss) on interest rate swaps | 0.3 | (1) | 2.9 | 1.2 |
Reclassification of losses into net earnings on interest rate swaps | (0.7) | 0.8 | (0.9) | (0.7) |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent, Total | 0.4 | (0.2) | 2 | 0.5 |
Other comprehensive (loss) income before reclassifications, Tax Effect | (0.1) | (0.5) | (0.2) | |
Other comprehensive (loss) income, Tax Effect | (0.1) | (0.5) | ||
Defined Benefit Obligation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent, Total | 0.1 | (0.3) | 0.1 | |
Other Comprehensive (Loss) income, before defined benefit pension, Pretax | (0.3) | 0.1 | (0.3) | 0.1 |
Reclassification of losses into net earnings on defined benefit pension, Tax Effect | (0.8) | (0.8) | ||
Other comprehensive (loss) income, Tax Effect | (0.8) | |||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Unrealized gain(loss) on interest rate swaps | (246.8) | 3.6 | (276.5) | 9.9 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent, Total | (246.8) | 3.6 | (276.5) | 9.9 |
Other comprehensive (loss) income before reclassifications, Tax Effect | 11.7 | (1.7) | 13.1 | 0.4 |
Other comprehensive (loss) income, Tax Effect | $ 11.7 | $ (1.7) | $ 13.1 | $ 0.4 |
Variable Interest Entities (Add
Variable Interest Entities (Additional Information) (Details) | Jul. 15, 2021 |
DomaniRx LLC [Member] | |
Variable Interest Entity [Line Items] | |
Ownership Percentage | 80.20% |
Variable Interest Entity - Summ
Variable Interest Entity - Summary of Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Assets: | |||
Cash and cash equivalents | $ 438.3 | $ 564 | $ 247.1 |
DomaniRx LLC [Member] | |||
Assets: | |||
Cash and cash equivalents | 148.3 | ||
Intangible assets | 146.3 | ||
Other assets | 0.1 | ||
Liabilities: | |||
Other liabilities | $ 8.1 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Deferred Revenue Arrangement [Line Items] | |||||
Deferred revenue presented net within contract assets arising from contract | $ 64.8 | $ 61 | |||
Deferred revenue recognized | $ 75.2 | $ 78.7 | 181.3 | $ 181.8 | |
Revenue expected to be recognized from remaining performance obligations | 933.4 | 933.4 | |||
Revenue expected to be recognized from remaining performance obligations in next twelve months | $ 480.8 | $ 480.8 | |||
Minimum [Member] | Software-enabled Services [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Revenue recognition period | 1 year | ||||
Maximum [Member] | Software-enabled Services [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Revenue recognition period | 5 years |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,328.7 | $ 1,259 | $ 2,623.7 | $ 2,492.4 |
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 937.4 | 894.6 | 1,860.4 | 1,773 |
United Kingdom [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 145.4 | 155.2 | 295.6 | 305.5 |
Europe (excluding United Kingdom), Middle East and Africa [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 98.1 | 85.9 | 187.6 | 155.7 |
Asia-Pacific and Japan [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 69.4 | 56.4 | 130.8 | 125.4 |
Canada [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 54.2 | 45.3 | 104.6 | 93.3 |
Americas, excluding United States and Canada [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 24.2 | $ 21.6 | $ 44.7 | $ 39.5 |
Revenues - Disaggregation of _2
Revenues - Disaggregation of Revenues by Source (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,328.7 | $ 1,259 | $ 2,623.7 | $ 2,492.4 |
Software-enabled Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,070.7 | 1,057.1 | 2,155.9 | 2,100.5 |
Maintenance and Term Licenses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 223.8 | 166.5 | 402.1 | 329.7 |
Professional Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 27 | 25.7 | 53.7 | 49.2 |
Perpetual Licenses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 7.2 | $ 9.7 | $ 12 | $ 13 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 46 | $ 27.7 | $ 85.9 | $ 55.5 |
Total Cost of Revenues [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 19 | 11.1 | 35 | 23.8 |
Total Cost of Revenues [Member] | Software-enabled Services [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 17.2 | 9.7 | 32.3 | 20.7 |
Total Cost of Revenues [Member] | License, Maintenance and Other Related [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 1.8 | 1.4 | 2.7 | 3.1 |
Selling and Marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 7.6 | 5.1 | 15.7 | 9.7 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 5.3 | 3.6 | 10.3 | 7.2 |
General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 14.1 | 7.9 | 24.9 | 14.8 |
Total Operating Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 27 | $ 16.6 | $ 50.9 | $ 31.7 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Stock Option and Stock Appreciation Rights ("SARs") Restricted Stock Units ("RSUs") and Performance Stock Units ("PSU") Activity (Detail) | 6 Months Ended |
Jun. 30, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding Opening | 44,900,000 |
Cancelled/forfeited | (800,000) |
Exercised | (1,300,000) |
Number of Shares, Outstanding Closing | 42,900,000 |
Granted | 100,000 |
Performance Stock Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding Opening | 400,000 |
Granted | 900,000 |
Cancelled/forfeited | 0 |
Number of Shares, Outstanding Closing | 1,300,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 29.10% | 28.80% | 27.90% | 27.40% |
Deferred tax liability | $ 118.9 | $ 118.9 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to SS&C common stockholders | $ 110.6 | $ 189.8 | $ 282.7 | $ 364.7 |
Shares attributable to SS&C: | ||||
Weighted-average common shares outstanding – used in calculation of basic EPS | 254.9 | 255.7 | 255.3 | 256.4 |
Weighted-average common stock equivalents – stock options and restricted shares | 9 | 11.9 | 10.2 | 11.4 |
Weighted-average common and common equivalent shares outstanding – used in calculation of diluted EPS | 263.9 | 267.6 | 265.5 | 267.8 |
Earnings per share attributable to SS&C common stockholders - Basic | $ 0.43 | $ 0.74 | $ 1.11 | $ 1.42 |
Earnings per share attributable to SS&C common stockholders - Diluted | $ 0.42 | $ 0.71 | $ 1.06 | $ 1.36 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock Options, SARs, RSUs, and RSAs [Member] | ||||
Earnings Per Share [Line Items] | ||||
Anti-dilutive shares not included in computation of diluted EPS | 22.7 | 8.7 | 16.4 | 15.8 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - DST Systems Inc [Member] - USD ($) $ in Millions | Jul. 10, 2020 | Sep. 30, 2021 |
Other (expense) income [Member] | ||
Loss Contingencies [Line Items] | ||
Accrued liability and expense | $ 43.4 | |
Settled Litigation [Member] | Putative Claims [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation settlement, expense | $ 27 |