Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SSNC | |
Entity Registrant Name | SS&C Technologies Holdings Inc | |
Entity Central Index Key | 1,402,436 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 240,481,972 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 732,200,000 | $ 64,100,000 |
Funds receivable and funds held on behalf of clients | 604,300,000 | |
Accounts receivable, net of allowance for doubtful accounts of $10.3 and $6.7, respectively | 614,700,000 | 243,900,000 |
Contract asset | 10,000,000 | |
Prepaid expenses and other current assets | 127,400,000 | 38,700,000 |
Prepaid income taxes | 34,400,000 | 12,200,000 |
Restricted cash and cash equivalents | 13,800,000 | 600,000 |
Total current assets | 2,136,800,000 | 359,500,000 |
Investments (Note 5) | 474,800,000 | 0 |
Property, plant and equipment: | ||
Land | 54,000,000 | 2,700,000 |
Building and improvements | 302,000,000 | 59,900,000 |
Equipment, furniture, and fixtures | 363,500,000 | 138,700,000 |
Total property and equipment | 719,500,000 | 201,300,000 |
Less: accumulated depreciation | (163,200,000) | (100,400,000) |
Net property, plant and equipment | 556,300,000 | 100,900,000 |
Deferred income taxes | 2,300,000 | 2,300,000 |
Contract asset | 26,600,000 | |
Goodwill (Note 6) | 6,507,600,000 | 3,707,800,000 |
Intangible and other assets, net of accumulated amortization of $1,223.3 and $954.0, respectively | 3,574,600,000 | 1,369,000,000 |
Total assets | 13,279,000,000 | 5,539,500,000 |
Current liabilities: | ||
Current portion of long-term debt (Note 4) | 71,100,000 | 37,900,000 |
Client funds obligations | 604,300,000 | |
Accounts payable | 36,500,000 | 27,100,000 |
Income taxes payable | 6,000,000 | |
Accrued employee compensation and benefits | 260,000,000 | 96,000,000 |
Interest payable | 1,800,000 | 16,400,000 |
Other accrued expenses | 191,600,000 | 55,600,000 |
Deferred revenue | 190,300,000 | 204,600,000 |
Total current liabilities | 1,355,600,000 | 443,600,000 |
Long-term debt, net of current portion (Note 4) | 6,615,000,000 | 2,007,300,000 |
Other long-term liabilities | 237,600,000 | 118,700,000 |
Deferred income taxes | 847,800,000 | 283,500,000 |
Total liabilities | 9,056,000,000 | 2,853,100,000 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity (Note 9): | ||
Preferred stock, $0.01 par value per share, 5.0 million shares authorized; no shares issued | ||
Common stock | 2,400,000 | 2,100,000 |
Additional paid-in capital | 3,597,400,000 | 2,018,100,000 |
Accumulated other comprehensive loss | (167,300,000) | (82,700,000) |
Retained earnings | 808,500,000 | 766,900,000 |
Stockholders' equity before treasury stock | 4,241,000,000 | 2,704,400,000 |
Less: cost of common stock in treasury, 1.6 million shares | (18,000,000) | (18,000,000) |
Total stockholders’ equity | 4,223,000,000 | 2,686,400,000 |
Total liabilities and stockholders’ equity | 13,279,000,000 | 5,539,500,000 |
Class A Non-Voting Common Stock [Member] | ||
Stockholders’ equity (Note 9): | ||
Common stock |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts receivable | $ 10.3 | $ 6.7 |
Accumulated amortization of finite-lived intangible assets | $ 1,223.3 | $ 954 |
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 | 242,000,000 | 208,100,000 |
Common stock, shares outstanding | 240,400,000 | 206,500,000 |
Treasury stock, shares | 1,600,000 | 1,600,000 |
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Total revenues | $ 992.4 | $ 418.2 | $ 2,310.1 | $ 1,236.9 |
Cost of revenues: | ||||
Total cost of revenues | 580.1 | 219.8 | 1,413.1 | 661 |
Gross profit | 412.3 | 198.4 | 897 | 575.9 |
Operating expenses: | ||||
Selling and marketing | 50.9 | 28.1 | 136.3 | 88.5 |
Research and development | 85.7 | 37.4 | 214.2 | 114.9 |
General and administrative | 93.2 | 29 | 233.4 | 88.9 |
Transaction expenses | 1.9 | 96.4 | ||
Total operating expenses | 231.7 | 94.5 | 680.3 | 292.3 |
Operating income | 180.6 | 103.9 | 216.7 | 283.6 |
Interest expense, net | (78.1) | (26.3) | (173.7) | (81.6) |
Other income (expense), net | 13.7 | (2.5) | 14.8 | (3.8) |
Equity in earnings of unconsolidated affiliates, net | 1.7 | 2.8 | ||
Loss on extinguishment of debt | (44.4) | (2.3) | ||
Income before income taxes | 117.9 | 75.1 | 16.2 | 195.9 |
Provision (benefit) for income taxes | 60.9 | 10.9 | (28.3) | 32.4 |
Net income | $ 57 | $ 64.2 | $ 44.5 | $ 163.5 |
Basic earnings per share | $ 0.24 | $ 0.31 | $ 0.20 | $ 0.80 |
Diluted earnings per share | $ 0.23 | $ 0.30 | $ 0.19 | $ 0.77 |
Basic weighted average number of common shares outstanding | 239.9 | 205.6 | 228.1 | 204.5 |
Diluted weighted average number of common and common equivalent shares outstanding | 252.6 | 212.4 | 239.5 | 211.1 |
Cash dividends declared and paid per common share | $ 0.08 | $ 0.07 | $ 0.22 | $ 0.195 |
Net income | $ 57 | $ 64.2 | $ 44.5 | $ 163.5 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency exchange translation adjustment | (54.2) | 19.9 | (84.6) | 51.7 |
Total comprehensive (loss) income, net of tax | (54.2) | 19.9 | (84.6) | 51.7 |
Comprehensive income (loss) | 2.8 | 84.1 | (40.1) | 215.2 |
Software-enabled Services [Member] | ||||
Revenues: | ||||
Total revenues | 827.3 | 282.1 | 1,863.7 | 831.1 |
Cost of revenues: | ||||
Total cost of revenues | 502.7 | 155.5 | 1,193.1 | 468.4 |
License, Maintenance and Related [Member] | ||||
Revenues: | ||||
Total revenues | 165.1 | 136.1 | 446.4 | 405.8 |
Cost of revenues: | ||||
Total cost of revenues | $ 77.4 | $ 64.3 | $ 220 | $ 192.6 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flow from operating activities: | ||
Net income | $ 44.5 | $ 163.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 342.9 | 176.9 |
Equity in earnings of unconsolidated affiliates, net | (2.8) | |
Stock-based compensation expense | 76.1 | 31.6 |
Net unrealized gains on investments | (10.6) | |
Amortization and write-offs of loan origination costs and original issue discounts | 9.5 | 7.9 |
Loss on extinguishment of debt | 44.4 | 2.3 |
Loss on sale or disposition of property and equipment | 0.3 | 0.7 |
Deferred income taxes | (105.9) | (24.6) |
Provision for doubtful accounts | 1.8 | 2.8 |
Changes in operating assets and liabilities, excluding effects from acquisitions: | ||
Accounts receivable | 40 | 1.8 |
Prepaid expenses and other assets | 23.9 | 1.4 |
Contract assets | (8.6) | |
Accounts payable | (86.8) | 8.6 |
Accrued expenses | (11.2) | (45.6) |
Income taxes prepaid and payable | (28.7) | 6.8 |
Deferred revenue | (6.4) | (25.6) |
Net cash provided by operating activities | 322.4 | 308.5 |
Cash flow from investing activities: | ||
Additions to property and equipment | (28.5) | (29.8) |
Proceeds from sale of property and equipment | 9.6 | |
Cash paid for business acquisitions, net of cash acquired | (4,633.6) | 1.8 |
Additions to capitalized software | (29.3) | (8.1) |
Investments in securities | (15.4) | |
Proceeds from sales / maturities of investments | 28.1 | |
Net cash used in investing activities | (4,669.1) | (36.1) |
Cash flow from financing activities: | ||
Cash received from debt borrowings, net of original issue discount | 6,873.7 | 45 |
Repayments of debt and acquired debt | (2,856.1) | (337.8) |
Net increase in client funds obligations | 193.2 | |
Proceeds from exercise of stock options | 74.8 | 46.3 |
Withholding taxes paid related to equity award net share settlement | (12.7) | (4.1) |
Fees paid for debt extinguishment and refinancing activities | (68.7) | (1.4) |
Proceeds from common stock issuance, net | 1,399 | |
Dividends paid on common stock | (50.7) | (39.9) |
Net cash provided by (used in) financing activities | 5,552.5 | (291.9) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2.5 | 3.8 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,208.3 | (15.7) |
Cash, cash equivalents and restricted cash, beginning of period | 64.7 | 119.7 |
Cash, cash equivalents and restricted cash and cash equivalents, end of period | 1,273 | 104 |
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents: | ||
Cash and cash equivalents | 732.2 | 103.4 |
Restricted cash and cash equivalents | 13.8 | 0.6 |
Funds receivable and funds held on behalf of clients | 527 | |
Cash and cash equivalents and restricted cash | 1,273 | 104 |
Supplemental disclosure of non-cash activities: | ||
Property and equipment acquired through tenant improvement allowances | $ 0.7 | $ 10.8 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1—Basis of Presentation 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2018 (the “2017 Form 10-K”). In the opinion of the Company, 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 its financial position as of September 30, 2018, the results of its operations for the three and nine months ended September 30, 2018 and 2017, and its cash flows for the nine months ended September 30, 2018 and 2017. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income or net income. 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, 2017, which were included in the 2017 Form 10-K. The December 31, 2017 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 nine months ended September 30, 2018 are not necessarily indicative of the expected results for any subsequent quarters or the full year. In connection with the adoption of Accounting Standards Codification (“ASC”) 606, the Company revised its presentation of revenues to illustrate its two primary sources of revenues: software-enabled services revenues and license, maintenance and other related revenues. The Company believes its prior presentation of recurring and non-recurring revenue streams is no longer useful, as the license portion of revenue from multi-year term license agreements is now recognized up-front and is no longer annually recurring in nature. Recently Adopted Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, Classification of Certain Cash Receipts and Cash Payments In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) Recent Accounting Pronouncements Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) recognize the majority of the Company’s operating lease commitments as operating lease liabilities and right-of-use assets upon adoption, which will result in a material increase in the assets and liabilities recorded on the Company’s Condensed Consolidated Balance Sheet. The Company is continuing its assessment, which may identify additional impacts ASU 2016-02 will have on the Company’s Condensed Consolidated Financial Statements and related disclosures and internal controls over financial reporting. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2—Significant Accounting Policies Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant accounts, transactions and profits between the consolidated companies have been eliminated in consolidation. The Company consolidates any entity in which it has a controlling financial interest. Under the voting interest model, generally the investor that has voting control (usually more than 50% of an entity’s voting interests) consolidates the entity. Under the variable interest entity (“VIE”) model, the party that has the power to direct the entity’s most significant economic activities and the ability to participate in the entity’s economics consolidates the entity. An entity is considered a VIE if it possesses one of the following characteristics: 1) the entity is thinly capitalized; 2) residual equity holders do not control the entity; 3) equity holders are shielded from economic losses; 4) equity holders do not participate fully in an entity’s residual economics; and 5) the entity was established with non-substantive voting interests. The Company’s investments in private equity funds meet the definition of a VIE; however, the private equity fund investments are not consolidated as the Company does not have the power to direct the entities’ most significant economic activities. The Company is the lessee in a series of operating leases covering a large portion of the Company’s Kansas City, Missouri-based leased office facilities. The lessors are generally joint ventures (in which the Company has 50% ownership) that have been established specifically to purchase, finance and engage in leasing activities with the joint venture partners and unrelated third parties. The Company’s analysis of its real estate joint ventures for all periods presented indicate that none qualified as a VIE and, accordingly, they have not been consolidated. Unconsolidated investments in entities over which the Company does not have control but has the ability to exercise influence over operating and financial policies, if any, are accounted for under the equity method of accounting. Earnings and losses from such investments are recorded on a pre-tax basis, if any. Client Funds/Obligations Funds receivable and funds held on behalf of clients The Company holds client funds on behalf of transfer agency clients and pharmacy processing clients in connection with providing its data processing services. End-of-day available client bank balances for full service mutual fund transfer agency clients are invested overnight in credit quality money market funds. Invested balances are returned to the full service mutual fund transfer agency clients’ accounts the following business day. Funds received from clients for the payment of pharmacy claims incurred by its members are invested in credit quality money market funds and certificates of deposit until the claims are paid. Client funding receivables represent amounts due to the Company for pharmacy claims paid in advance of receiving client funding and for pharmacy claims processed for which client funding requests have not been made. Funds held on behalf of clients in the form of cash, cash equivalents and certificates of deposit with a maturity of less than twelve months are included in Funds receivable and funds held on behalf of clients in the Condensed Consolidated Balance Sheet. Funds held on behalf of clients in the form of certificates of deposit with a maturity of greater than twelve months are classified as Investments in the Condensed Consolidated Balance Sheet. All funds held on behalf of clients represent assets that are restricted for use. The Company has included funds held on behalf of clients that meet the definition of restricted cash and restricted cash equivalents in the beginning and end of period balances in the Condensed Consolidated Statements of Cash Flows. Cash inflows and outflows related to investment of funds held on behalf of clients are reported on a gross basis as “Investments in securities” and “Proceeds from sales / maturities of investments” in the investing section of the Condensed Consolidated Statements of Cash Flows. Client funds obligations Client funds obligations represent funds owed to full service mutual fund transfer agency clients for cash balances invested overnight, and the Company’s contractual obligations to satisfy client pharmacy claim obligations that are recorded on the balance sheet when incurred, generally after the Company has processed a claim on behalf of its pharmacy clients. Investments The Company holds various investments, including investments in marketable securities, non-marketable securities, and partnership interests in private equity funds, joint ventures and other similar entities. The equity method of accounting is used for investments in entities, partnerships and similar interests (including investments in private equity funds where the Company is a limited partner and holds a greater than 5% partnership interest in the fund) in which the Company has significant influence but does not control. Under the equity method, the Company recognizes income or losses from its pro-rata share of these unconsolidated affiliates’ net income or loss, which changes the carrying value of the investment of the unconsolidated affiliate. The Company measures equity investments in marketable securities, seed capital investments and other investments, other than those accounted for under the equity method of accounting or those that result in consolidation of the investee, at fair value, with changes in the fair value recognized in earnings. The Company uses net asset value as a practical expedient for the fair value of partnership interests in private equity funds that are not accounted for under the equity method of accounting. Investments in non-marketable equity securities that do not have readily determinable fair values and do not qualify for the practical expedient to measure the investment using a net asset value per share are recorded using the measurement alternative in ASU 2016-01. These investments are recorded at cost, less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. At each reporting period, the Company assesses if these investments continue to qualify for this measurement alternative. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. The Company has certain investments in unconsolidated affiliates accounted for under the equity method of accounting in which the Company’s carrying value exceeds the proportionate share of net assets of the unconsolidated affiliate. The total investment in unconsolidated affiliates, including basis differences, is included in Investments on the Condensed Consolidated Balance Sheet. The Company records its 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 (Loss). Derivative and Hedging Activities The Company recognizes all derivatives as either assets or liabilities in the Condensed Consolidated Balance Sheet and measures those instruments at fair value and the changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income (loss), depending on whether a derivative is designated as part of a hedge transaction and, if it is, the type of hedge transaction. From time to time, the Company utilizes derivatives to manage foreign currency risks. The Company does not enter into derivative arrangements for speculative purposes. At September 30, 2018, the Company had derivative instruments outstanding as described in Note 7, “Hedging Transactions and Derivative Financial Instruments.” The Company includes cash flows related to derivative instruments qualifying for hedge accounting and economic hedges in the same category as the item being hedged in the Condensed Consolidated Statement of Cash Flows. Transaction Expenses Transaction expenses are those costs that are directly related to the Company’s acquisition of DST Systems, Inc. (“DST”), as described in Note 11, “Acquisitions.” Transaction expenses consist primarily of certain costs associated with the amendment and restatement of the Company’s Credit Agreement, as described in Note 4, “Debt”, investment banker advisory fees, legal fees and other fees. Comprehensive Income (Loss) The Company’s comprehensive income (loss) consists of net income and foreign currency translation adjustments, which are presented in the Condensed Consolidated Statement of Comprehensive Income (Loss), net of tax and reclassifications to earnings. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | Note 3—Revenues Adoption of ASC Topic 606, “Revenue from Contracts with Customers” On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method for those contracts that were not completed as of the date of adoption. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts continue to be reported in accordance with ASC 605 and 985. The most significant impact of the standard to the Company relates to the timing of revenue recognition for arrangements involving term licenses. Under ASC 606, the Company is required to recognize term license revenues upon the transfer of the license and recognize the associated maintenance revenues over the contract period, as opposed to the Company’s prior practice of recognizing both the term license and maintenance revenues ratably over the contract period. In addition, the Company is required to capitalize and amortize incremental costs of obtaining a contract, such as certain sales commission costs, over the expected customer relationship period if the Company expects to recover those costs. The Company previously expensed these costs over the length of the initial contract excluding any renewals. The Company recorded an increase to retained earnings of $65.8 million, or $47.9 million net of tax, as of January 1, 2018 due to the cumulative impact of adopting ASC 606, with the impact primarily related to the Company’s term license revenues. The impact to revenues for the three and nine months ended September 30, 2018 related to these adjustments was a decrease of $7.2 million and $28.6 million, respectively. The impact of adoption of ASC 606 on the Company’s Condensed Consolidated Statement of Comprehensive Income (Loss) was as follows (in millions): For the Three Months Ended September 30, 2018 As Reported Without adoption of ASC 606 Effect of Change Revenues: License, maintenance and related $ 165.1 $ 156.7 $ 8.4 Operating expenses: Selling and marketing $ 50.9 $ 51.6 $ (0.7 ) For the Nine Months Ended September 30, 2018 As Reported Without adoption of ASC 606 Effect of Change Revenues: License, maintenance and related $ 446.4 $ 426.5 $ 19.9 Operating expenses: Selling and marketing $ 136.3 $ 138.8 $ (2.5 ) The impact of adoption of ASC 606 on the Company’s Condensed Consolidated Balance Sheet was as follows (in millions): As of September 30, 2018 As Reported Balance without adoption of ASC 606 Effect of Change Assets: Accounts receivable, net $ 614.7 $ 617.1 $ (2.4 ) Contract asset (current) 10.0 - 10.0 Prepaid expenses and other current assets 127.4 121.8 5.6 Contract asset (non-current) 26.6 - 26.6 Liabilities: Deferred revenue $ 190.3 $ 241.3 $ (51.0 ) Other long-term liabilities 237.6 235.0 2.6 The adoption of ASC 606 had no impact on the Company’s total cash flows from operations. Revenue Recognition Software-enabled Services Revenue The Company primarily offers software-enabled outsourcing services in which the Company utilizes its own software to offer comprehensive fund administration services for alternative investment managers, including fund manager services, transfer agency services, funds-of-funds services, tax processing and accounting. The Company also uses its own software applications to provide healthcare organizations a variety of medical and pharmacy benefit solutions to satisfy their information processing, quality of care, cost management concerns and payment integrity programs. The Company’s healthcare solutions include claims adjudication, benefit management, care management, business intelligence and other ancillary services. The Company also offers subscription-based on-demand software applications that are managed and hosted at the Company’s facilities. The software-enabled services arrangements provide an alternative for clients who do not wish to install, run and maintain complicated financial software. Under these arrangements, the client does not have the right to take possession of the software, rather, the Company agrees to provide access to its applications, remote use of its equipment to process transactions, access to client’s data stored on its equipment, and connectivity between its environment and the client’s computing systems. 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. In software-enabled services arrangements, the arrangement is a single performance obligation or a stand-ready performance obligation, which in either case is comprised of a series of distinct services that are substantially the same and have the same pattern of transfer to the customer (i.e. distinct days or months of service). The Company applies a measure of progress (typically time-based) to any fixed consideration and allocates variable consideration to the distinct periods of service based on usage or summarization of account information. These variable payments relate specifically to the Company’s efforts to perform the services in the period in which the fee applies. This variability is solely attributed to and resolved as a result of the transfer of these services; these fees are independent of the transfer of past or future goods or services. These fees meet the allocation objective of ASC 606 because they represent the amount of consideration the Company is entitled to for these services. License, Maintenance and Related Revenue Agreements The Company generates revenues in the form of software license fees and related maintenance and services fees. License fees include perpetual license fees and term license fees that differ mainly in the duration over which the customer benefits from the software. Maintenance and services primarily consist of fees for maintenance services (including support and unspecified upgrades and enhancements when and if they are available) and to a lesser extent professional services which focus on both deployment and training the Company’s customers to fully leverage the use of its products although the user can benefit from the software without the Company’s assistance. Under ASC 606, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. Software license performance obligations are functional intellectual property that are distinct as the user can benefit from the software on its own as defined under ASC 606. Software license revenues are recognized at the point of time when the software license has been delivered. Term license fees are typically due in annual installments at the beginning of each annual period and the Company records a contract asset for amounts recognized as revenue in excess of amounts billed. The Company recognizes revenues from maintenance ratably over the term of the underlying maintenance contract term because the Company transfers control evenly by providing a stand-ready service Revenues from professional services consist mostly of services provided on a time and materials basis. The performance obligations are satisfied, and revenues are recognized, over time as the services are provided. In contracts with multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price out of total consideration of the contract. Standalone selling price is determined utilizing observable prices to the extent available. If the standalone selling price for a performance obligation is not directly observable, the Company estimates it maximizing the use of observable inputs. For maintenance and support, the Company determines the standalone selling price based on the price at which the Company separately sells a renewal contract and the economic relationship between licenses and maintenance. The Company primarily determines the standalone selling price for sales of licenses using the residual approach. For professional services, the Company determines the standalone selling prices based on the price at which the Company separately sells those services. The Company occasionally enters into license agreements requiring significant customization of the Company’s software that are not material to the Company’s results of operations. The Company accounts for the license and professional service fees under these agreements as a single performance obligation, recognized over time using an input method during the development of the license. This method requires estimates to be made for costs to complete the agreement utilizing an estimate of development man-hours remaining. Revenue is recognized each period based on the hours incurred to date compared to the total hours expected to complete the project. Due to uncertainties inherent in the estimation process, it is at least reasonably possible that completion costs will be revised. Such revisions are recognized in the period in which the revisions are determined. Provisions for estimated losses on uncompleted contracts are determined on a contract-by-contract basis, and are made in the period in which such losses are first estimated or determined. Accounts Receivable, net is primarily comprised of billed and unbilled receivables for which the Company has an unconditional right to consideration, net of an allowance for doubtful accounts. Deferred revenues represent mostly unrecognized fees billed or collected for maintenance and professional services. Deferred revenues are recognized as (or when) the Company performs under the contract. Deferred revenues are recorded on a net basis with contract assets at the contract level. Accordingly, as of September 30, 2018, approximately $32.9 million 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 $33.1 million and $164.1 million for the three and nine months ended September 30, 2018, respectively. As of September 30, 2018, revenue of approximately $305.1 million is expected to be recognized from remaining performance obligations for license, maintenance and related revenues, of which $210.3 million is expected to be recognized over the next twelve months. Revenue Disaggregation The following table disaggregates the Company’s revenues by geography (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 (1) 2018 2017 (1) United States $ 718.7 $ 305.9 $ 1,667.4 $ 905.9 United Kingdom 161.8 28.4 338.5 84.8 Asia-Pacific and Japan 38.1 28.3 102.5 81.7 Europe, excluding United Kingdom 33.7 26.0 96.5 75.6 Canada 28.7 18.6 69.8 55.6 Americas, excluding United States and Canada 11.4 11.0 35.4 33.3 Total $ 992.4 $ 418.2 $ 2,310.1 $ 1,236.9 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. The following table disaggregates the Company’s revenues by source (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 (1) 2018 2017 (1) Software-enabled services $ 827.3 $ 282.1 $ 1,863.7 $ 831.1 Maintenance and term licenses 131.7 112.8 362.6 337.0 Perpetual licenses 10.1 3.6 22.9 10.2 Professional services 23.3 19.7 60.9 58.6 Total $ 992.4 $ 418.2 $ 2,310.1 $ 1,236.9 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Costs of Revenues Costs of revenues include all costs, including depreciation and amortization, incurred to produce revenues. Incremental costs of obtaining a contract (e.g., sales commissions) are capitalized and amortized on a basis consistent with the pattern of transfer of goods or services to the customer to which the asset relates over the expected customer relationship period if the Company expects to recover those costs. Prior to the adoption of ASC 606, the Company previously expensed these costs over the length of the initial contract excluding any renewals. The expected customer relationship period is determined based on average historical customer relationship periods, including expected renewals. Expected renewal periods are only included in the expected customer relationship period if commission amounts paid upon renewal are not commensurate with amounts paid on the initial contract. Incremental costs of obtaining a contract include only those costs the Company incurs to obtain a contract that it would not have incurred if the contract had not been obtained. The Company has determined that certain commissions programs meet the requirements to be capitalized. Certain sales commissions associated with multi-year contracts are subject to an employee service requirement. As an action other than each party approving the contract is required to trigger payment of these sales commissions, they are not considered incremental costs to obtain a contract and are expensed as incurred. Practical Expedients The Company expenses sales commissions as incurred when the amortization period would have been one year or less. The Company does not account for significant financing components if the period between when the Company transfers the promised product or service to the client and when the client pays for that product or service will be one year or less. For the Company’s software-enabled services contracts which are cancelable with 90 days’ notice or meet the allocation objective for series performance obligations under ASC 606, the Company has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. The Company records revenue net of any taxes assessed by governmental authorities. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 4—Debt At September 30, 2018 and December 31, 2017, debt consisted of the following (in millions): September 30, 2018 December 31, 2017 Senior secured credit facilities, weighted-average interest rate of 4.49% and 3.75%, respectively $ 6,729.1 $ 1,492.2 5.875% senior notes due 2023 — 600.0 Other indebtedness 30.3 — Unamortized original issue discount and debt issuance costs (73.3 ) (47.0 ) 6,686.1 2,045.2 Less current portion of long-term debt 71.1 37.9 Long-term debt $ 6,615.0 $ 2,007.3 Senior Secured Credit Facilities On April 16, 2018, in connection with its acquisition of DST Systems, Inc. (“DST”), the Company entered into an amended and restated credit agreement with SS&C Technologies, Inc. (“SS&C”), SS&C European Holdings SARL, an indirect wholly-owned subsidiary of SS&C (“SS&C SARL”) and SS&C Technologies Holdings Europe SARL, an indirect wholly-owned subsidiary of SS&C (“SS&C Tech SARL”) as the borrowers (“Credit Agreement”). The Credit Agreement includes four tranches of term loans (together the “Initial Term Loans”): (i) a $518.6 million term B-1 facility which matures on July 8, 2022 for SS&C (“Term B-1 Loan”); (ii) a $5.9 million term B-2 facility which matures on July 8, 2022 for SS&C SARL (“Term B-2 Loan”) (iii) a new $5.046 billion term B-3 facility, which matures on April 16, 2025 for SS&C (“Term B-3 Loan”); and (iv) a new $1.8 billion term B-4 facility, which matures on April 16, 2025 for SS&C SARL (“Term B-4 Loan”). In addition, the Credit Agreement has a revolving credit facility with a five-year term available for borrowings by SS&C with $250.0 million in available commitments (“Revolving Credit Facility”), of which $245.6 million was available as of September 30, 2018. The Revolving Credit Facility also contains a $25 million letter of credit sub-facility, of which $4.4 million was drawn as of September 30, 2018. The majority of the initial proceeds from the Initial Term Loans was used to satisfy the consideration required to fund the acquisition of DST, repay certain amounts outstanding under the Company’s then-existing credit agreement (“Prior Credit Agreement”), repay all of the outstanding principal amount of the Company’s 5.875% Senior Notes due 2023 (“Senior Notes”) and to repay acquired debt associated with DST. The refinancing of the Prior Credit Agreement was evaluated in accordance with FASB ASC 470-50, Debt-Modifications and Extinguishments Loss on extinguishment of debt The Initial Term Loans and Revolving Credit Facility bear interest, at the election of the borrowers, at the base rate (as defined in the Credit Agreement) or LIBOR, plus the applicable interest rate margin for the credit facility. Amounts drawn on the Revolving Credit Facility initially bear interest at either LIBOR plus 2.25% or at the base rate plus 1.25%, and is subject to a step-down at any time SS&C’s consolidated net secured leverage ratio is less than 4.75 times, to 2.00% in the case of the LIBOR margin and 1.00% in the case of the base rate margin. The Term B-1 Loan and Term B-2 Loan bear interest at either LIBOR plus 2.25% or at the base rate plus 1.25%. The Term B-3 Loan and Term B-4 Loan initially bear interest at either LIBOR plus 2.50% or at the base rate plus 1.50%, and are subject to a step-down at any time SS&C’s consolidated net secured leverage ratio is less than 4.75 times, to 2.25% in the case of the LIBOR margin and 1.25% in the case of the base rate margin. SS&C and SS&C SARL SARL SS&C’s and SS&C SARL The obligations of the U.S. loan parties under the Credit Agreement are secured by substantially all of the assets of such persons (subject to customary exceptions and limitations), including a pledge of all of the capital stock of substantially all of the U.S. wholly-owned restricted subsidiaries of such persons (with customary exceptions and limitations) and 65% of the capital stock of certain foreign restricted subsidiaries of such persons (with customary exceptions and limitations). All obligations of the non-U.S. loan parties under the Credit Agreement are secured by substantially all of the Company’s and the other guarantors’ assets (subject to customary exceptions and limitations), including a pledge of all of the capital stock of substantially all of the Company’s wholly-owned restricted subsidiaries (with customary exceptions and limitations). The Credit Agreement includes negative covenants that, among other things and subject to certain thresholds and exceptions, limit the Company’s ability and the ability of its restricted subsidiaries to incur debt or liens, make investments (including in the form of loans and acquisitions), merge, liquidate or dissolve, sell property and assets, including capital stock of its subsidiaries, pay dividends on its capital stock or redeem, repurchase or retire its capital stock, alter the business the Company conducts, amend, prepay, redeem or purchase subordinated debt, or engage in transactions with its affiliates. The Credit Agreement also contains customary representations and warranties, affirmative covenants and events of default, subject to customary thresholds and exceptions. In addition, the Credit Agreement contains a financial covenant for the benefit of the Revolving Credit Facility requiring the Company to maintain a minimum consolidated net secured leverage ratio. In addition, under the Credit Agreement, certain defaults under agreements governing other material indebtedness could result in an event of default under the Credit Agreement, in which case the lenders could elect to accelerate payments under the Credit Agreement and terminate any commitments they have to provide future borrowings. Senior Notes On April 16, 2018, the Company redeemed all of the outstanding principal amount of its Senior Notes utilizing a portion of the proceeds from the Term Loans described above. The redemption of the Senior Notes required the payment of a “make whole” premium calculated pursuant to the indenture governing the Senior Notes. See Loss on extinguishment of debt Other indebtedness In connection with the acquisition of DST, the Company assumed a mortgage with a principal amount of £21.0 million, which matures in October 2020 (“U.K. Mortgage”) and a $4.1 million mortgage on property in the U.S. The outstanding amount under the U.K. Mortgage was $26.1 million at September 30, 2018 with a fixed interest rate of 3.1%. Principal payments of £1.0 million are payable semi-annually in April and October of each year and accrued interest payable quarterly, with the outstanding balance due at maturity. Debt issuance costs In connection with the Credit Agreement, the Company capitalized an aggregate of $37.5 million in financing costs during the three months ended June 30, 2018. Other costs incurred by the Company in connection with the Credit Agreement, which did not meet the criteria for capitalization, are included in Transaction expenses in the Condensed Consolidated Statement of Comprehensive Income (Loss). Loss on extinguishment of debt The Company recorded a $44.4 million loss on extinguishment of debt in connection with the entry into the Credit Agreement and redemption of the Senior Notes. The loss on early extinguishment of debt includes the write-off of a portion of the unamortized capitalized financing fees and the unamortized original issue discount related to the Prior Credit Agreement for amounts accounted for as a debt extinguishment, a make-whole premium paid in connection with the redemption of the Senior Notes and the write-off of all unamortized capitalized financing fees and unamortized original issue discount related to the Senior Notes. Fair value of debt. The carrying amounts and fair values of financial instruments are as follows (in millions): September 30, 2018 December 31, 2017 Carrying Fair Carrying Fair Amount Value Amount Value Financial liabilities: Senior secured credit facilities $ 6,729.1 $ 6,735.2 $ 1,492.2 $ 1,500.8 5.875% senior notes due 2023 — — 600.0 631.3 Other indebtedness 30.3 30.2 — — 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. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 5—Investments Investments are as follows (in millions): September 30, 2018 Investments in unconsolidated affiliates $ 250.5 Partnership interests in private equity funds 117.8 Marketable equity securities 41.3 Non-marketable equity securities 45.0 Seed capital investments 19.8 Other investments 0.4 Total investments $ 474.8 The Company had $474.8 million of investments as of September 30, 2018 as compared to no investments as of December 31, 2017. The increase in investments was the result of acquiring the net assets of DST in the second quarter of 2018. Realized and unrealized gains and losses for the Company’s equity securities are as follows (in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2018 Unrealized gains on equity securities held as of the end of the period $ 10.2 $ 11.0 Realized gains for equity securities sold during the period 1.7 1.7 Total gains recognized in other income, net $ 11.9 $ 12.7 Investments in unconsolidated affiliates are as follows (in millions): Carrying Value Excess carrying value of investment over proportionate share of net assets Ownership Percentage September 30, 2018 September 30, 2018 International Financial Data Services L.P. 50% $ 95.9 $ 49.2 Pershing Road Development Company, LLC 50% 79.9 78.4 Broadway Square Partners, LLP 50% 59.2 33.9 Other unconsolidated affiliates 15.5 0.3 Total $ 250.5 $ 161.8 Investments in unconsolidated affiliates are accounted for under the equity method of accounting. The total investment in unconsolidated affiliates, including basis differences, is included in Investments on the Condensed Consolidated Balance Sheet. The Company records its 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 (Loss). Equity in earnings of unconsolidated affiliates are as follows (in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2018 International Financial Data Services L.P. $ 0.8 $ 2.0 Pershing Road Development Company, LLC 0.5 (0.1 ) Broadway Square Partners, LLP 0.2 0.2 Other unconsolidated affiliates 0.2 0.7 Total $ 1.7 $ 2.8 International Financial Data Services L.P. (“IFDS L.P.”) is a 50% owned joint venture with State Street Corporation with operations in Canada, Ireland and Luxembourg. Pershing Road Development Company, LLC (“PRDC LLC”) is a 50% owned special-purpose entity formed to develop and lease office space to the U.S. government. Broadway Square Partners, LLP (“Broadway Square Partners”) is a 50% owned real estate joint venture. The difference between the amount at which each of IFDS L.P., PRDC LLC and Broadway Square Partners, is carried, and the amount of underlying equity in net assets, will be amortized as a component of equity in earnings of unconsolidated affiliates over approximately 15 years, 28 years and 40 years, respectively. 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 September 30, 2018, the Company 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, marketable equity securities and seed capital investments 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 the Company elected net asset value as a practical expedient for fair value and investments measured using the fair value measurement alternative are excluded from the table 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 Company has foreign currency derivative instruments that are required to be reported at fair value. Fair value for the derivative instruments was determined using inputs from quoted prices for similar assets and liabilities in active markets that are directly or indirectly observable. Accordingly, the derivative instruments have been classified as Level 2 in the tables below. The following table present assets and liabilities measured at fair value on a recurring basis (in millions): Fair Value Measurements at Reporting Date Using September 30, 2018 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) $ 353.6 $ 353.6 $ — $ — Marketable equity securities (2) 41.3 41.3 — — Seed capital investments (2) 19.8 19.8 — — Deferred compensation liabilities (3) (27.8 ) (27.8 ) — — Derivative instruments (4) (1.2 ) — (1.2 ) — Total $ 385.7 $ 386.9 $ (1.2 ) $ — _____________________________________________________ (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. (4) Included in Other accrued expenses on the Condensed Consolidated Balance Sheet. The Company has not become aware of any information indicative of fair value impairments or adjustments to the carrying value of its non-marketable equity securities for the three and nine months ended September 30, 2018. The Company has partnership interests in various private equity funds that are not included in the table above. The Company’s investments in private equity funds were $117.8 million at September 30, 2018, of which $110.9 million were measured using net asset value as a practical expedient for fair value and $6.9 million 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. One of the Company’s investments in private equity funds as of September 30, 2018, representing 81% of the value of the private equity fund investments, was concentrated in one fund that is primarily invested in the energy sector and real estate. The Company has no management rights associated with its partnership interests in this fund and withdrawals from this fund are subject to general partner consent. This fund has a termination date in 2019 with an optional two-year extension at the discretion of the general partner. The Company expects to receive distributions from this fund upon liquidation of the underlying investments over the next several years, however the exact timing of the distributions is unknown. The Company has no unfunded commitments related to this fund. Future capital commitments related to the Company’s other private equity fund investments were approximately $1.9 million as of September 30, 2018. Generally, the Company’s 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. Even when transfer restrictions do not apply, there is generally no public market for the securities. Therefore, the Company may not be able to sell the securities at a time when it desires to do so. The Company may not always be able to sell those investments at the same or higher prices than it paid for them. As of September 30, 2018, the Company did not have plans to sell any of these investments. The maximum risk of loss related to the Company’s private equity fund investments is limited to the carrying value of its investments in the entities plus any future capital commitments, which include future commitments that the Company believes are unlikely to be called by the general partner . |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 6—Goodwill The change in carrying value of goodwill as of and for the nine months ended September 30, 2018 is as follows (in millions): Balance at December 31, 2017 $ 3,707.8 2018 acquisitions 2,822.8 Adjustments to prior acquisitions 0.2 Effect of foreign currency translation (23.2 ) Balance at September 30, 2018 $ 6,507.6 |
Hedging Transactions and Deriva
Hedging Transactions and Derivatives Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Hedging Transactions and Derivatives Instruments | Note 7—Hedging Transactions and Derivatives Instruments The Company is directly and indirectly affected by changes in certain market conditions. When determined appropriate, the Company uses derivative instruments as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company using derivative instruments is foreign currency exchange rate risk. The Company may use various types of derivative instruments including, but not limited to, forward contracts, option contracts and swaps. The Company does not enter into derivative arrangements for speculative purposes. The Company determines the fair values of its derivatives based on quoted market prices that are directly or indirectly observable as further described within Note 5, “Investments.” The Company currently uses certain derivatives as economic hedges of foreign currency exposure. Although these derivatives are not designated for hedge accounting, they are effective economic hedges. The changes in fair values of economic hedges are immediately recognized into earnings. The Company uses foreign currency economic hedges to reduce the variability in cash flows of forecasted transactions caused by fluctuations in foreign currency exchange rates, primarily the Indian rupee and Thailand baht. The foreign currency economic hedging program consists of forward foreign currency contracts with maturities through March 2019. All changes in fair value of the economic hedges were recorded in Other income (expense), net, during the three and nine months ended September 30, 2018 and resulted in expense of $0.5 million and $0.9 million, respectively. The total notional values of derivatives related to its foreign currency economic hedges were $14.5 million as of September 30, 2018. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 8—Earnings per Share Earnings per share (“EPS”) is calculated in accordance with the relevant standards. Basic EPS includes no dilution and is computed by dividing net income available to the Company’s common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income by the weighted average number of common and common equivalent shares outstanding during the period. Common equivalent shares consist of stock options, stock appreciation rights (“SARs”), restricted stock units (“RSUs”) and restricted stock awards (“RSAs”) using the treasury stock method. Common equivalent shares are excluded from the computation of diluted earnings per share if the effect of including such common equivalent shares is anti-dilutive because their total assumed proceeds exceed the average fair value of common stock for the period. The following table sets forth the computation of basic and diluted EPS (in millions, except per share amounts): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Net income $ 57.0 $ 64.2 $ 44.5 $ 163.5 Shares: Weighted average common shares outstanding — used in calculation of basic EPS 239.9 205.6 228.1 204.5 Weighted average common stock equivalents — options and restricted shares 12.7 6.8 11.4 6.6 Weighted average common and common equivalent shares outstanding — used in calculation of diluted EPS 252.6 212.4 239.5 211.1 Earnings per share - Basic $ 0.24 $ 0.31 $ 0.20 $ 0.80 Earnings per share - Diluted $ 0.23 $ 0.30 $ 0.19 $ 0.77 Stock options and SARs representing 4.4 and 5.2 million shares were outstanding for the three and nine months ended September 30, 2018, respectively, but were not included in the computation of diluted EPS because the effect of including them would be anti-dilutive. Stock options and SARs representing 0.6 and 10.7 million shares were outstanding for the three and nine months ended September 30, 2017, respectively, but were not included in the computation of diluted EPS because the effect of including them would be anti-dilutive. Dividends . In 2018, the Company paid a quarterly cash dividend of $0.07 per share of common stock on March 15, 2018 and June 15, 2018 and $0.08 per share of common stock on September 18, 2018 to stockholders of record as of the close of business on March 1, 2018, June 1, 2018 and September 4, 2018, respectively, totaling $50.7 million in the aggregate. In 2017, the Company paid a quarterly cash dividend of $0.0625 per share of common stock on March 15, 2017 and June 15, 2017 and $0.07 per share of common stock on September 15, 2017 to stockholders of record as of the close of business on March 1, 2017, June 1, 2017 and September 15, 2017, respectively, totaling $39.9 million in the aggregate. |
Equity and Stock Compensation
Equity and Stock Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Equity and Stock Compensation | Note 9—Equity and Stock Compensation Public offering. In April 2018, the Company completed a public offering of its common stock. The offering included 30.3 million newly issued shares of common stock sold by the Company (including 3.9 million shares of common stock sold pursuant to the underwriters’ option to purchase additional shares) at an offering price to the public of $47.50 per share for which the Company received total net proceeds of approximately $1.4 billion. Other comprehensive loss. Accumulated other comprehensive loss balances, net of tax consist of the following (in millions): Foreign Currency Translation Accumulated Other Comprehensive Loss Balance, December 31, 2017 $ (82.7 ) $ (82.7 ) Net current period other comprehensive loss (84.6 ) (84.6 ) Balance, September 30, 2018 $ (167.3 ) $ (167.3 ) Adjustments to accumulated other comprehensive loss attributable to the Company are as follows (in millions): For the Three Months Ended September 30, 2018 For the Nine Months Ended September 30, 2018 Pretax Tax Effect Pretax Tax Effect Cumulative translation adjustments Current period translation adjustments $ (54.1 ) $ (0.1 ) $ (84.8 ) $ 0.2 Net cumulative translation adjustments (54.1 ) (0.1 ) (84.8 ) 0.2 Total other comprehensive loss $ (54.1 ) $ (0.1 ) $ (84.8 ) $ 0.2 Total stock options, SARs, RSUs and RSAs . The amount of stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2018 and 2017 was as follows (in millions): Consolidated Statements of Comprehensive For the Three Months Ended September 30, For the Nine Months Ended September 30, Income (Loss) Classification 2018 2017 2018 2017 Cost of software-enabled services $ 8.0 $ 2.9 $ 29.4 $ 8.5 Cost of license, maintenance and other related 1.1 1.1 3.4 3.3 Total cost of revenues 9.1 4.0 32.8 11.8 Selling and marketing 2.1 2.4 8.9 7.6 Research and development 2.0 1.8 6.7 5.5 General and administrative 5.2 2.1 27.7 6.7 Total operating expenses 9.3 6.3 43.3 19.8 Total stock-based compensation expense $ 18.4 $ 10.3 $ 76.1 $ 31.6 In connection with the acquisition of DST, the Company converted DST’s unvested stock options, unvested RSUs and unvested PSUs into SS&C equity awards and rights to receive SS&C common stock. During the three and nine months ended September 30, 2018, the Company recognized stock-based compensation expense of $5.9 million and $39.2 million related to these assumed awards, of which $0.7 million and $28.8 million, respectively, related to one-time charges for the accelerated vesting of certain awards. The following table summarizes stock option and SAR activity as of and for the nine months ended September 30, 2018 (shares in millions): Shares Outstanding at December 31, 2017 31.3 Granted 3.9 Equity awards assumed from DST 0.7 Cancelled/forfeited (1.1 ) Exercised (3.5 ) Outstanding at September 30, 2018 31.3 The following table summarizes RSU activity as of and for the nine months ended September 30, 2018 (shares in millions): Shares Outstanding at December 31, 2017 0.2 Granted - Equity awards assumed from DST 2.0 Cancelled/forfeited - Vested (0.5 ) Outstanding at September 30, 2018 1.7 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10—Income Taxes The effective tax rate was 51.7% and 14.5% for the three months ended September 30, 2018 and 2017, respectively and (174.7)% and 16.5% for the nine months ended September 30, 2018 and 2017, respectively. The change in the effective tax rate for the three months ended September 30, 2018 and nine months ended September 30, 2018 was primarily due to the relative proportionate impact of permanent book to tax differences and discrete items on reduced pre-tax book income in 2018 as well as changes in the forecast of pre-tax book income due to increased realized synergies related to the acquisition of DST occurring during the year. The income tax benefit recorded during the nine months ended September 30, 2018 includes a net $8.1 million benefit for the remeasurement of state deferred tax liabilities as a result of the DST acquisition and state law changes enacted during the year, an $18.9 million benefit related to stock award windfalls and a $7.1 million benefit for a lapse in the statute of limitations of previously unrecognized tax benefits. The effective tax rate in 2018 includes the impact of a tax on Global Intangible Low-Taxed Income (“GILTI”) and the reduction in the domestic statutory tax rate from 35% to 21%, both of which became effective January 1, 2018 as a result of the Tax Cut and Jobs Act of 2017 (“Tax Act”) enacted into law in the U.S. on December 22, 2017. In December 2017, the SEC Staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance on how to implement the accounting required as a result of the Tax Act. Due to the complexity of the Tax Act, SAB 118 allowed companies to record provisional amounts, or reasonable estimates of the tax effects of the Act during a measurement period not to exceed one year beyond the enactment date. Accordingly, the Company provided provisional amounts for the period ending December 31, 2017 relating to the deemed repatriation provisions, revaluation of deferred taxes, other international provisions and the related state tax impacts. The Company has not yet completed its accounting related to these items and the Company did not record any significant adjustments related to our provisional amounts during the three or nine months ending September 30, 2018. The Company will continue to analyze the provisional amounts in conjunction with guidance issued by the Department of Treasury in order to complete our accounting during the measurement period. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Note 11—Acquisitions DST Systems Inc. On April 16, 2018, the Company purchased all of the outstanding stock of DST Systems, Inc. (“DST”) for approximately $5.1 billion in cash, plus the costs of effecting the transaction. In connection with this acquisition, the Company entered into the Credit Agreement pursuant to which the Company’s subsidiaries SS&C and SS&C SARL borrowed an aggregate of approximately $7.4 billion (approximately $524.5 million of which was rolled over from the Company’s existing credit facility). DST is a global provider of specialized technology, strategic advisory and business operations outsourcing to the financial services and healthcare industries. The net assets and results of operations of DST have been included in the Company’s Consolidated Financial Statements from April 16, 2018. The fair value of the intangible assets, consisting of customer relationships, completed technologies, trade names and a non-compete agreement, was determined using the income approach. Specifically, the relief from-royalty method was utilized for the completed technology and trade name, the excess earnings method was utilized for the customer relationships and the lost profits method was utilized for the non-compete agreement. The intangible assets 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. The completed technology is amortized over approximately twelve years, customer relationships are amortized over approximately fourteen years, the trade name is amortized over approximately twelve years and the non-compete agreement is amortized over approximately two years, in each case the estimated lives of the assets. The fair value of the fixed assets was determined using a combination of income, market and cost approaches, dependent on the type of fixed asset that was valued. The fair value of investments was determined based on the nature of the underlying investment. The fair value of investments in marketable equity securities and seed capital investments were determined using quoted prices in active markets for identical assets. The fair value of investment in partnership interests in private equity funds was primarily determined using the net asset value of the fund. The fair value of investments in non-marketable equity securities was determined based on recent observable transactions of similar equity securities of the investee. The fair value of the investments in unconsolidated affiliates was determined using a combination of income and market approaches. The remainder of the purchase price was allocated to goodwill and is not tax deductible. CACEIS North America On June 1, 2018, the Company purchased all of the outstanding stock of CACEIS North America (“CACEIS”) for approximately $20.0 million in cash, plus the costs of effecting the transaction and the assumption of certain liabilities. CACEIS provides fund administration services and support for complex investment strategies. The net assets and results of operations of CACEIS have been included in the Company’s Consolidated Financial Statements from June 1, 2018. The fair value of the intangible assets, consisting of customer relationships, was determined using the income approach. Specifically, the excess earnings method was utilized for the customer relationships. The intangible assets 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. The customer relationships are amortized over approximately sixteen years, which is the estimated life of the asset. The remainder of the purchase price was allocated to goodwill and is not tax deductible. The following summarizes the preliminary allocation of the purchase price for the acquisitions of DST and CACEIS (in millions): CACEIS DST Accounts receivable $ 1.5 $ 402.6 Fixed assets 0.4 509.3 Other assets 0.4 394.3 Investments — 474.0 Acquired client relationships and contracts 9.8 1,570.1 Completed technology — 563.0 Trade names — 138.0 Non-compete agreements — 43.0 Goodwill 9.6 2,813.2 Current portion of long-term debt — (605.8 ) Accounts payable (0.1 ) (96.1 ) Accrued employee compensation and benefits (0.3 ) (175.4 ) Deferred revenue (0.1 ) (30.0 ) Deferred income taxes (1.2 ) (645.4 ) Long-term debt — (29.4 ) Client funds obligations — (376.2 ) Other liabilities assumed (0.3 ) (287.4 ) Consideration paid, net of cash acquired $ 19.7 $ 4,661.8 The consideration paid, net of cash acquired for DST above includes $48.1 million of non-cash consideration related to the fair value of unvested acquired equity awards with a pre-acquisition service period. This amount is excluded from “Cash paid for business acquisitions, net of cash acquired” for the nine months ended September 30, 2018 on the Company’s Condensed Consolidated Statement of Cash Flows. Cash acquired for DST includes $347.0 million of restricted cash and cash equivalents classified as funds held on behalf of clients. As part of the DST acquisition, the Company recorded unrecognized tax benefits of $72.3 million related primarily to state tax positions that are recorded in other long-term liabilities within the Condensed Consolidated Balance Sheets. The Company recorded severance expense related to a reduction in headcount in connection with the integration efforts associated with the acquisition of DST. The majority of the positions eliminated in the reduction in force were effective in June 2018 and the reduction is expected to be complete by December 2018. The amount of severance expense recognized in the Company’s Condensed Consolidated Statements of Comprehensive Income (Loss) for three and nine months ended September 30, 2018 was as follows (in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, Consolidated Statements of Comprehensive Income (Loss) Classification 2018 2018 Cost of software-enabled services $ 2.8 $ 36.9 Cost of license, maintenance and other related 0.3 0.3 Total cost of revenues 3.1 37.2 Selling and marketing 0.1 2.4 Research and development 0.3 10.3 General and administrative 1.0 8.9 Total operating expenses 1.4 21.6 Total severance expense $ 4.5 $ 58.8 The fair value of acquired accounts receivable balances for CACEIS and DST approximates the contractual amounts due from acquired customers, except for approximately $6.1 million of contractual amounts that are not expected to be collected as of the acquisition date and that were also reserved by CACEIS and DST. The Company reported revenues of $3.7 million and $1,030.3 million from CACEIS and DST, respectively, from their respective acquisition dates through September 30, 2018. The following unaudited pro forma condensed consolidated results of operations are provided for illustrative purposes only and assume that the acquisitions of CACEIS and DST occurred on January 1, 2017 and the acquisitions of CommonWealth Fund Services Ltd. and Modestspark occurred on January 1, 2016. This unaudited pro forma information (in millions, except per share data) should not be relied upon as being indicative of the historical results that would have been obtained if the acquisitions had actually occurred on that date, nor of the results that may be obtained in the future. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ 995.7 $ 986.7 $ 2,994.5 $ 2,881.0 Net income $ 60.9 $ 47.6 $ 166.3 $ 123.3 Basic EPS $ 0.25 $ 0.23 $ 0.73 $ 0.60 Diluted EPS $ 0.24 $ 0.22 $ 0.69 $ 0.58 Basic weighted average number of common shares outstanding 239.9 205.6 228.1 204.5 Diluted weighted average number of common and common equivalent shares outstanding 252.6 212.4 239.5 211.1 Pending acquisition On September 6, 2018, the Company announced that it had entered into a definitive agreement wherein the Company will acquire Intralinks Holdings, Inc. (“Intralinks”) from affiliates of Siris Capital Group. Under the terms of the agreement, the Company will purchase Intralinks for total consideration of $1.5 billion, subject to adjustment based on Intralink’s actual working capital at closing compared to an agreed target, and net indebtedness and unpaid transaction expenses of Intralinks. The transaction is expected to close in the fourth quarter of 2018 and is subject to clearances by the relevant regulatory authorities and other customary closing conditions. The Company plans to fund the acquisition with $1.0 billion in cash and $0.5 billion in SS&C stock, with the per share price of the stock based on the volume weighted average trading price for 30 trading days prior to closing. In connection with the transaction, the Company also announced on September 6, 2018 that it has entered into a commitment letter with Deutsche Bank AG New York Branch, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Royal Bank of Canada, Credit Suisse AG, Cayman Islands Branch and Credit Suisse Loan Funding LLC, (collectively, the “Commitment Parties”), pursuant to which the Commitment Parties have committed to provide up to $1.0 billion of financing in connection with the transaction. Intralinks is a leading financial technology provider for the global banking, deal making and capital markets communities. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12—Commitments and Contingencies From time to time, the Company is subject to legal proceedings and claims. In the opinion of the Company's management, the Company is not involved in any litigation or proceedings that would have a material adverse effect on the Company or its business. Legal Proceedings A putative class action suit was filed against DST, the Compensation Committee of DST’s Board of Directors, the Advisory Committee of DST Systems, Inc. 401(k) Profit Sharing Plan (the “Plan”) and certain of DST’s present and/or former officers and directors, alleging breach of fiduciary duties and other violations of the Employee Retirement Income Security Act. On September 1, 2017, a complaint was filed purportedly on behalf of the Plan in the Southern District of New York, captioned Ferguson, et al v. Ruane Cunniff & Goldfarb Inc, et al., naming as defendants the 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. The Company intends to defend this case vigorously, and, because it is still in its preliminary stages, has not yet determined what effect this lawsuit will have, if any, on its financial position or results of operations. In connection with an investigation of the Plan and the activities of its fiduciaries, the U.S. Department of Labor through its Employee Benefits Security Administration issued a letter dated February 23, 2018 stating that, based on facts gathered, it appeared that certain fiduciaries of the Plan may have breached their fiduciary obligations and violated certain provisions of the Employee Retirement Income Security Act in connection with the administration of the Plan. The letter stated that if the fiduciaries fail to take corrective action, the matter may be referred to the Office of the Solicitor of Labor for possible legal action. The letter further stated that if the fiduciaries take proper corrective action based on a settlement agreement with the Department of Labor, it will not bring a lawsuit with regard to these issues, and close its investigation without further action. The Company has not yet determined what effect this letter will have, if any, on its financial position or results of operations. 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., Case No. l 8-cv-8913, on behalf of five individual plaintiffs. The Complaint names as defendants SS&C Technologies Holdings, Inc., DST Systems, Inc., The Advisory Committee of the DST Systems, Inc. 401(k) Profit Sharing Plan, The Compensation Committee of the Board of Directors of DST Systems, Inc., and Ruane, Cuniff & Goldfarb, Inc. The underlying claim is the same as in the above-described Ferguson matter, with the exception that it is an individual action and not a putative class action. DST Systems, Inc., the Advisory Committee of the Plan, and the Compensation Committee of DST’s Board of Directors have been named in 253 substantially similar individual demands for arbitration through September 30, 2018, by former and current DST employees demanding arbitration under the DST Employee Arbitration Program and Agreement. The underlying claim in each is the same as in the above-described Ferguson matter, with the exception that each is an individual claim and not a putative class action. On August 6, 2018, the parties jointly submitted 11 of the demands for arbitration to the American Arbitration Association. The remaining demands for arbitration have not yet been submitted. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13—Subsequent Events Acquisitions On October 1, 2018, the Company purchased all of the outstanding stock of Eze Software (“Eze”) for approximately $1.45 billion in cash, plus the costs of effecting the transaction. The Company funded the acquisition with a combination of cash and $875.0 million in incremental term loan debt. Eze provides investment management solutions designed to optimize operational and investment alpha running throughout the entire investment process. The net assets and results of operations of Eze will be included in the Company’s consolidated financial statements from October 1, 2018. The relevant business combination disclosures will be included in the Company’s consolidated financial statements once preliminary accounting has been completed. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, Classification of Certain Cash Receipts and Cash Payments In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) |
Recent Accounting Pronouncements Not Yet Effective | Recent Accounting Pronouncements Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) recognize the majority of the Company’s operating lease commitments as operating lease liabilities and right-of-use assets upon adoption, which will result in a material increase in the assets and liabilities recorded on the Company’s Condensed Consolidated Balance Sheet. The Company is continuing its assessment, which may identify additional impacts ASU 2016-02 will have on the Company’s Condensed Consolidated Financial Statements and related disclosures and internal controls over financial reporting. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant accounts, transactions and profits between the consolidated companies have been eliminated in consolidation. The Company consolidates any entity in which it has a controlling financial interest. Under the voting interest model, generally the investor that has voting control (usually more than 50% of an entity’s voting interests) consolidates the entity. Under the variable interest entity (“VIE”) model, the party that has the power to direct the entity’s most significant economic activities and the ability to participate in the entity’s economics consolidates the entity. An entity is considered a VIE if it possesses one of the following characteristics: 1) the entity is thinly capitalized; 2) residual equity holders do not control the entity; 3) equity holders are shielded from economic losses; 4) equity holders do not participate fully in an entity’s residual economics; and 5) the entity was established with non-substantive voting interests. The Company’s investments in private equity funds meet the definition of a VIE; however, the private equity fund investments are not consolidated as the Company does not have the power to direct the entities’ most significant economic activities. The Company is the lessee in a series of operating leases covering a large portion of the Company’s Kansas City, Missouri-based leased office facilities. The lessors are generally joint ventures (in which the Company has 50% ownership) that have been established specifically to purchase, finance and engage in leasing activities with the joint venture partners and unrelated third parties. The Company’s analysis of its real estate joint ventures for all periods presented indicate that none qualified as a VIE and, accordingly, they have not been consolidated. Unconsolidated investments in entities over which the Company does not have control but has the ability to exercise influence over operating and financial policies, if any, are accounted for under the equity method of accounting. Earnings and losses from such investments are recorded on a pre-tax basis, if any. |
Client Funds/Obligations | Client Funds/Obligations Funds receivable and funds held on behalf of clients The Company holds client funds on behalf of transfer agency clients and pharmacy processing clients in connection with providing its data processing services. End-of-day available client bank balances for full service mutual fund transfer agency clients are invested overnight in credit quality money market funds. Invested balances are returned to the full service mutual fund transfer agency clients’ accounts the following business day. Funds received from clients for the payment of pharmacy claims incurred by its members are invested in credit quality money market funds and certificates of deposit until the claims are paid. Client funding receivables represent amounts due to the Company for pharmacy claims paid in advance of receiving client funding and for pharmacy claims processed for which client funding requests have not been made. Funds held on behalf of clients in the form of cash, cash equivalents and certificates of deposit with a maturity of less than twelve months are included in Funds receivable and funds held on behalf of clients in the Condensed Consolidated Balance Sheet. Funds held on behalf of clients in the form of certificates of deposit with a maturity of greater than twelve months are classified as Investments in the Condensed Consolidated Balance Sheet. All funds held on behalf of clients represent assets that are restricted for use. The Company has included funds held on behalf of clients that meet the definition of restricted cash and restricted cash equivalents in the beginning and end of period balances in the Condensed Consolidated Statements of Cash Flows. Cash inflows and outflows related to investment of funds held on behalf of clients are reported on a gross basis as “Investments in securities” and “Proceeds from sales / maturities of investments” in the investing section of the Condensed Consolidated Statements of Cash Flows. Client funds obligations Client funds obligations represent funds owed to full service mutual fund transfer agency clients for cash balances invested overnight, and the Company’s contractual obligations to satisfy client pharmacy claim obligations that are recorded on the balance sheet when incurred, generally after the Company has processed a claim on behalf of its pharmacy clients. |
Investments | Investments The Company holds various investments, including investments in marketable securities, non-marketable securities, and partnership interests in private equity funds, joint ventures and other similar entities. The equity method of accounting is used for investments in entities, partnerships and similar interests (including investments in private equity funds where the Company is a limited partner and holds a greater than 5% partnership interest in the fund) in which the Company has significant influence but does not control. Under the equity method, the Company recognizes income or losses from its pro-rata share of these unconsolidated affiliates’ net income or loss, which changes the carrying value of the investment of the unconsolidated affiliate. The Company measures equity investments in marketable securities, seed capital investments and other investments, other than those accounted for under the equity method of accounting or those that result in consolidation of the investee, at fair value, with changes in the fair value recognized in earnings. The Company uses net asset value as a practical expedient for the fair value of partnership interests in private equity funds that are not accounted for under the equity method of accounting. Investments in non-marketable equity securities that do not have readily determinable fair values and do not qualify for the practical expedient to measure the investment using a net asset value per share are recorded using the measurement alternative in ASU 2016-01. These investments are recorded at cost, less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same issuer. At each reporting period, the Company assesses if these investments continue to qualify for this measurement alternative. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. The Company has certain investments in unconsolidated affiliates accounted for under the equity method of accounting in which the Company’s carrying value exceeds the proportionate share of net assets of the unconsolidated affiliate. The total investment in unconsolidated affiliates, including basis differences, is included in Investments on the Condensed Consolidated Balance Sheet. The Company records its 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 (Loss). |
Derivative and Hedging Activities | Derivative and Hedging Activities The Company recognizes all derivatives as either assets or liabilities in the Condensed Consolidated Balance Sheet and measures those instruments at fair value and the changes in the fair value of derivatives are recorded each period in current earnings or other comprehensive income (loss), depending on whether a derivative is designated as part of a hedge transaction and, if it is, the type of hedge transaction. From time to time, the Company utilizes derivatives to manage foreign currency risks. The Company does not enter into derivative arrangements for speculative purposes. At September 30, 2018, the Company had derivative instruments outstanding as described in Note 7, “Hedging Transactions and Derivative Financial Instruments.” The Company includes cash flows related to derivative instruments qualifying for hedge accounting and economic hedges in the same category as the item being hedged in the Condensed Consolidated Statement of Cash Flows. |
Transaction Expenses | Transaction Expenses Transaction expenses are those costs that are directly related to the Company’s acquisition of DST Systems, Inc. (“DST”), as described in Note 11, “Acquisitions.” Transaction expenses consist primarily of certain costs associated with the amendment and restatement of the Company’s Credit Agreement, as described in Note 4, “Debt”, investment banker advisory fees, legal fees and other fees. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company’s comprehensive income (loss) consists of net income and foreign currency translation adjustments, which are presented in the Condensed Consolidated Statement of Comprehensive Income (Loss), net of tax and reclassifications to earnings. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disaggregation of Revenues by Geography and Source | The following table disaggregates the Company’s revenues by geography (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 (1) 2018 2017 (1) United States $ 718.7 $ 305.9 $ 1,667.4 $ 905.9 United Kingdom 161.8 28.4 338.5 84.8 Asia-Pacific and Japan 38.1 28.3 102.5 81.7 Europe, excluding United Kingdom 33.7 26.0 96.5 75.6 Canada 28.7 18.6 69.8 55.6 Americas, excluding United States and Canada 11.4 11.0 35.4 33.3 Total $ 992.4 $ 418.2 $ 2,310.1 $ 1,236.9 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. The following table disaggregates the Company’s revenues by source (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 (1) 2018 2017 (1) Software-enabled services $ 827.3 $ 282.1 $ 1,863.7 $ 831.1 Maintenance and term licenses 131.7 112.8 362.6 337.0 Perpetual licenses 10.1 3.6 22.9 10.2 Professional services 23.3 19.7 60.9 58.6 Total $ 992.4 $ 418.2 $ 2,310.1 $ 1,236.9 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
ASU 2014-09 [Member] | |
Impact of Adoption of ASC 606 on Company's Condensed Consolidated Statement of Comprehensive Income (Loss) | The impact of adoption of ASC 606 on the Company’s Condensed Consolidated Statement of Comprehensive Income (Loss) was as follows (in millions): For the Three Months Ended September 30, 2018 As Reported Without adoption of ASC 606 Effect of Change Revenues: License, maintenance and related $ 165.1 $ 156.7 $ 8.4 Operating expenses: Selling and marketing $ 50.9 $ 51.6 $ (0.7 ) For the Nine Months Ended September 30, 2018 As Reported Without adoption of ASC 606 Effect of Change Revenues: License, maintenance and related $ 446.4 $ 426.5 $ 19.9 Operating expenses: Selling and marketing $ 136.3 $ 138.8 $ (2.5 ) |
Impact of Adoption of ASC 606 on Company's Condensed Consolidated Balance Sheet | The impact of adoption of ASC 606 on the Company’s Condensed Consolidated Balance Sheet was as follows (in millions): As of September 30, 2018 As Reported Balance without adoption of ASC 606 Effect of Change Assets: Accounts receivable, net $ 614.7 $ 617.1 $ (2.4 ) Contract asset (current) 10.0 - 10.0 Prepaid expenses and other current assets 127.4 121.8 5.6 Contract asset (non-current) 26.6 - 26.6 Liabilities: Deferred revenue $ 190.3 $ 241.3 $ (51.0 ) Other long-term liabilities 237.6 235.0 2.6 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Component of Debt | At September 30, 2018 and December 31, 2017, debt consisted of the following (in millions): September 30, 2018 December 31, 2017 Senior secured credit facilities, weighted-average interest rate of 4.49% and 3.75%, respectively $ 6,729.1 $ 1,492.2 5.875% senior notes due 2023 — 600.0 Other indebtedness 30.3 — Unamortized original issue discount and debt issuance costs (73.3 ) (47.0 ) 6,686.1 2,045.2 Less current portion of long-term debt 71.1 37.9 Long-term debt $ 6,615.0 $ 2,007.3 |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of financial instruments are as follows (in millions): September 30, 2018 December 31, 2017 Carrying Fair Carrying Fair Amount Value Amount Value Financial liabilities: Senior secured credit facilities $ 6,729.1 $ 6,735.2 $ 1,492.2 $ 1,500.8 5.875% senior notes due 2023 — — 600.0 631.3 Other indebtedness 30.3 30.2 — — |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Investments | Investments are as follows (in millions): September 30, 2018 Investments in unconsolidated affiliates $ 250.5 Partnership interests in private equity funds 117.8 Marketable equity securities 41.3 Non-marketable equity securities 45.0 Seed capital investments 19.8 Other investments 0.4 Total investments $ 474.8 |
Schedule of Realized and Unrealized Gains and Losses on Investments | Realized and unrealized gains and losses for the Company’s equity securities are as follows (in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2018 Unrealized gains on equity securities held as of the end of the period $ 10.2 $ 11.0 Realized gains for equity securities sold during the period 1.7 1.7 Total gains recognized in other income, net $ 11.9 $ 12.7 |
Schedule of Investments in Unconsolidated Affiliates | Investments in unconsolidated affiliates are as follows (in millions): Carrying Value Excess carrying value of investment over proportionate share of net assets Ownership Percentage September 30, 2018 September 30, 2018 International Financial Data Services L.P. 50% $ 95.9 $ 49.2 Pershing Road Development Company, LLC 50% 79.9 78.4 Broadway Square Partners, LLP 50% 59.2 33.9 Other unconsolidated affiliates 15.5 0.3 Total $ 250.5 $ 161.8 |
Schedule of Equity in Earnings of Unconsolidated Affiliates | Equity in earnings of unconsolidated affiliates are as follows (in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2018 International Financial Data Services L.P. $ 0.8 $ 2.0 Pershing Road Development Company, LLC 0.5 (0.1 ) Broadway Square Partners, LLP 0.2 0.2 Other unconsolidated affiliates 0.2 0.7 Total $ 1.7 $ 2.8 |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table present assets and liabilities measured at fair value on a recurring basis (in millions): Fair Value Measurements at Reporting Date Using September 30, 2018 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) $ 353.6 $ 353.6 $ — $ — Marketable equity securities (2) 41.3 41.3 — — Seed capital investments (2) 19.8 19.8 — — Deferred compensation liabilities (3) (27.8 ) (27.8 ) — — Derivative instruments (4) (1.2 ) — (1.2 ) — Total $ 385.7 $ 386.9 $ (1.2 ) $ — _____________________________________________________ (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. (4) Included in Other accrued expenses on the Condensed Consolidated Balance Sheet. |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 nine months ended September 30, 2018 is as follows (in millions): Balance at December 31, 2017 $ 3,707.8 2018 acquisitions 2,822.8 Adjustments to prior acquisitions 0.2 Effect of foreign currency translation (23.2 ) Balance at September 30, 2018 $ 6,507.6 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Net income $ 57.0 $ 64.2 $ 44.5 $ 163.5 Shares: Weighted average common shares outstanding — used in calculation of basic EPS 239.9 205.6 228.1 204.5 Weighted average common stock equivalents — options and restricted shares 12.7 6.8 11.4 6.6 Weighted average common and common equivalent shares outstanding — used in calculation of diluted EPS 252.6 212.4 239.5 211.1 Earnings per share - Basic $ 0.24 $ 0.31 $ 0.20 $ 0.80 Earnings per share - Diluted $ 0.23 $ 0.30 $ 0.19 $ 0.77 |
Equity and Stock Compensation (
Equity and Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss Balances, Net of Tax | Other comprehensive loss. Accumulated other comprehensive loss balances, net of tax consist of the following (in millions): Foreign Currency Translation Accumulated Other Comprehensive Loss Balance, December 31, 2017 $ (82.7 ) $ (82.7 ) Net current period other comprehensive loss (84.6 ) (84.6 ) Balance, September 30, 2018 $ (167.3 ) $ (167.3 ) |
Schedule of Adjustments to Accumulated Other Comprehensive Loss | Adjustments to accumulated other comprehensive loss attributable to the Company are as follows (in millions): For the Three Months Ended September 30, 2018 For the Nine Months Ended September 30, 2018 Pretax Tax Effect Pretax Tax Effect Cumulative translation adjustments Current period translation adjustments $ (54.1 ) $ (0.1 ) $ (84.8 ) $ 0.2 Net cumulative translation adjustments (54.1 ) (0.1 ) (84.8 ) 0.2 Total other comprehensive loss $ (54.1 ) $ (0.1 ) $ (84.8 ) $ 0.2 |
Schedule of Stock-Based Compensation Expense Recognized | Total stock options, SARs, RSUs and RSAs . The amount of stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2018 and 2017 was as follows (in millions): Consolidated Statements of Comprehensive For the Three Months Ended September 30, For the Nine Months Ended September 30, Income (Loss) Classification 2018 2017 2018 2017 Cost of software-enabled services $ 8.0 $ 2.9 $ 29.4 $ 8.5 Cost of license, maintenance and other related 1.1 1.1 3.4 3.3 Total cost of revenues 9.1 4.0 32.8 11.8 Selling and marketing 2.1 2.4 8.9 7.6 Research and development 2.0 1.8 6.7 5.5 General and administrative 5.2 2.1 27.7 6.7 Total operating expenses 9.3 6.3 43.3 19.8 Total stock-based compensation expense $ 18.4 $ 10.3 $ 76.1 $ 31.6 |
Summary of Stock Option and SAR Activity | The following table summarizes stock option and SAR activity as of and for the nine months ended September 30, 2018 (shares in millions): Shares Outstanding at December 31, 2017 31.3 Granted 3.9 Equity awards assumed from DST 0.7 Cancelled/forfeited (1.1 ) Exercised (3.5 ) Outstanding at September 30, 2018 31.3 |
Summary of RSU Activity | The following table summarizes RSU activity as of and for the nine months ended September 30, 2018 (shares in millions): Shares Outstanding at December 31, 2017 0.2 Granted - Equity awards assumed from DST 2.0 Cancelled/forfeited - Vested (0.5 ) Outstanding at September 30, 2018 1.7 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Summary of Allocation of Purchase Price for Acquisitions of Acquiree | The following summarizes the preliminary allocation of the purchase price for the acquisitions of DST and CACEIS (in millions): CACEIS DST Accounts receivable $ 1.5 $ 402.6 Fixed assets 0.4 509.3 Other assets 0.4 394.3 Investments — 474.0 Acquired client relationships and contracts 9.8 1,570.1 Completed technology — 563.0 Trade names — 138.0 Non-compete agreements — 43.0 Goodwill 9.6 2,813.2 Current portion of long-term debt — (605.8 ) Accounts payable (0.1 ) (96.1 ) Accrued employee compensation and benefits (0.3 ) (175.4 ) Deferred revenue (0.1 ) (30.0 ) Deferred income taxes (1.2 ) (645.4 ) Long-term debt — (29.4 ) Client funds obligations — (376.2 ) Other liabilities assumed (0.3 ) (287.4 ) Consideration paid, net of cash acquired $ 19.7 $ 4,661.8 |
Schedule of Severance Expense Recognized | The amount of severance expense recognized in the Company’s Condensed Consolidated Statements of Comprehensive Income (Loss) for three and nine months ended September 30, 2018 was as follows (in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, Consolidated Statements of Comprehensive Income (Loss) Classification 2018 2018 Cost of software-enabled services $ 2.8 $ 36.9 Cost of license, maintenance and other related 0.3 0.3 Total cost of revenues 3.1 37.2 Selling and marketing 0.1 2.4 Research and development 0.3 10.3 General and administrative 1.0 8.9 Total operating expenses 1.4 21.6 Total severance expense $ 4.5 $ 58.8 |
Summary of Unaudited Pro Forma Information | The following unaudited pro forma condensed consolidated results of operations are provided for illustrative purposes only and assume that the acquisitions of CACEIS and DST occurred on January 1, 2017 and the acquisitions of CommonWealth Fund Services Ltd. and Modestspark occurred on January 1, 2016. This unaudited pro forma information (in millions, except per share data) should not be relied upon as being indicative of the historical results that would have been obtained if the acquisitions had actually occurred on that date, nor of the results that may be obtained in the future. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ 995.7 $ 986.7 $ 2,994.5 $ 2,881.0 Net income $ 60.9 $ 47.6 $ 166.3 $ 123.3 Basic EPS $ 0.25 $ 0.23 $ 0.73 $ 0.60 Diluted EPS $ 0.24 $ 0.22 $ 0.69 $ 0.58 Basic weighted average number of common shares outstanding 239.9 205.6 228.1 204.5 Diluted weighted average number of common and common equivalent shares outstanding 252.6 212.4 239.5 211.1 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018Source | |
ASC 606 [Member] | |
Basis Of Presentation [Line Items] | |
Number of primary sources of revenues | 2 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018 | |
Kansas City, Missouri [Member] | Joint Venture in Leasing Arrangement [Member] | |
Accounting Policies [Line Items] | |
Ownership percentage | 50.00% |
Minimum [Member] | |
Accounting Policies [Line Items] | |
Percentage of voting interest held for consolidation | 50.00% |
Minimum [Member] | Limited Partner [Member] | Partnership Interests in Private Equity Funds [Member] | |
Accounting Policies [Line Items] | |
Ownership percentage | 5.00% |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Deferred Revenue Arrangement [Line Items] | ||||
Retained earnings | $ 808.5 | $ 808.5 | $ 766.9 | |
Maintenance contract term | 1 year | |||
Deferred revenue presented net within contract assets arised from contract | $ 32.9 | |||
Deferred revenue recognized | 33.1 | 164.1 | ||
Revenue expected to be recognized from remaining performance obligations | 305.1 | 305.1 | ||
Revenue expected to be recognized from remaining performance obligations in next twelve months | 210.3 | $ 210.3 | ||
Software-enabled Services [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Notice period for cancelling contract | 90 days | |||
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 | |||
Effect of Change [Member] | ASU 2014-09 [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Retained earnings | $ 65.8 | |||
Cumulative impact on retained earnings, net of tax | $ 47.9 | |||
Decrease in revenue | $ (7.2) | $ (28.6) |
Revenues - Impact of Adoption o
Revenues - Impact of Adoption of ASC 606 on Company's Condensed Consolidated Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Revenues | $ 992.4 | $ 418.2 | $ 2,310.1 | $ 1,236.9 |
Operating expenses: | ||||
Selling and marketing | 50.9 | 28.1 | 136.3 | 88.5 |
License, Maintenance and Related [Member] | ||||
Revenues: | ||||
Revenues | 165.1 | $ 136.1 | 446.4 | $ 405.8 |
Without adoption of ASC 606 [Member] | ASU 2014-09 [Member] | ||||
Operating expenses: | ||||
Selling and marketing | 51.6 | 138.8 | ||
Without adoption of ASC 606 [Member] | ASU 2014-09 [Member] | License, Maintenance and Related [Member] | ||||
Revenues: | ||||
Revenues | 156.7 | 426.5 | ||
Effect of Change [Member] | ASU 2014-09 [Member] | ||||
Operating expenses: | ||||
Selling and marketing | (0.7) | (2.5) | ||
Effect of Change [Member] | ASU 2014-09 [Member] | License, Maintenance and Related [Member] | ||||
Revenues: | ||||
Revenues | $ 8.4 | $ 19.9 |
Revenues - Impact of Adoption_2
Revenues - Impact of Adoption of ASC 606 on Company's Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Accounts receivable, net | $ 614.7 | $ 243.9 |
Contract asset (current) | 10 | |
Prepaid expenses and other current assets | 127.4 | 38.7 |
Contract asset (non-current) | 26.6 | |
Liabilities: | ||
Deferred revenue | 190.3 | 204.6 |
Other long-term liabilities | 237.6 | $ 118.7 |
ASU 2014-09 [Member] | Balance without adoption of ASC 606 | ||
Assets: | ||
Accounts receivable, net | 617.1 | |
Prepaid expenses and other current assets | 121.8 | |
Liabilities: | ||
Deferred revenue | 241.3 | |
Other long-term liabilities | 235 | |
ASU 2014-09 [Member] | Effect of Change [Member] | ||
Assets: | ||
Accounts receivable, net | (2.4) | |
Contract asset (current) | 10 | |
Prepaid expenses and other current assets | 5.6 | |
Contract asset (non-current) | 26.6 | |
Liabilities: | ||
Deferred revenue | (51) | |
Other long-term liabilities | $ 2.6 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | $ 992.4 | $ 418.2 | $ 2,310.1 | $ 1,236.9 |
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | 718.7 | 305.9 | 1,667.4 | 905.9 |
United Kingdom [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | 161.8 | 28.4 | 338.5 | 84.8 |
Asia-Pacific and Japan [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | 38.1 | 28.3 | 102.5 | 81.7 |
Europe, excluding United Kingdom [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | 33.7 | 26 | 96.5 | 75.6 |
Canada [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | 28.7 | 18.6 | 69.8 | 55.6 |
Americas, excluding United States and Canada [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | $ 11.4 | $ 11 | $ 35.4 | $ 33.3 |
Revenues - Disaggregation of _2
Revenues - Disaggregation of Revenues by Source (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | $ 992.4 | $ 418.2 | $ 2,310.1 | $ 1,236.9 |
Software-enabled Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | 827.3 | 282.1 | 1,863.7 | 831.1 |
Maintenance and Term Licenses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | 131.7 | 112.8 | 362.6 | 337 |
Perpetual Licenses [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | 10.1 | 3.6 | 22.9 | 10.2 |
Professional Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenue | $ 23.3 | $ 19.7 | $ 60.9 | $ 58.6 |
Debt - Component of Debt (Detai
Debt - Component of Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Other indebtedness | $ 30.3 | |
Unamortized original issue discount and debt issuance costs | (73.3) | $ (47) |
Debt | 6,686.1 | 2,045.2 |
Less current portion of long-term debt | 71.1 | 37.9 |
Long-term debt | 6,615 | 2,007.3 |
Secured Debt [Member] | Senior Secured Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | $ 6,729.1 | 1,492.2 |
Senior Notes [Member] | 5.875% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | $ 600 |
Debt - Component of Debt (Paren
Debt - Component of Debt (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Secured Debt [Member] | Senior Secured Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Debt, weighted-average interest rate of credit facility | 4.49% | 3.75% |
Senior Notes [Member] | 5.875% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 5.875% | 5.875% |
Debt, due date | 2,023 |
Debt - Additional Information (
Debt - Additional Information (Detail) £ in Millions | May 01, 2018USD ($) | Apr. 16, 2018USD ($) | Apr. 16, 2018GBP (£) | Sep. 30, 2018USD ($)Tranche | Sep. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Apr. 16, 2018GBP (£) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||
Number of tranche of term loan | Tranche | 4 | |||||||
Debt instrument, interest rate terms | The Initial Term Loans and Revolving Credit Facility bear interest, at the election of the borrowers, at the base rate (as defined in the Credit Agreement) or LIBOR, plus the applicable interest rate margin for the credit facility. Amounts drawn on the Revolving Credit Facility initially bear interest at either LIBOR plus 2.25% or at the base rate plus 1.25%, and is subject to a step-down at any time SS&C’s consolidated net secured leverage ratio is less than 4.75 times, to 2.00% in the case of the LIBOR margin and 1.00% in the case of the base rate margin. The Term B-1 Loan and Term B-2 Loan bear interest at either LIBOR plus 2.25% or at the base rate plus 1.25%. The Term B-3 Loan and Term B-4 Loan initially bear interest at either LIBOR plus 2.50% or at the base rate plus 1.50%, and are subject to a step-down at any time SS&C’s consolidated net secured leverage ratio is less than 4.75 times, to 2.25% in the case of the LIBOR margin and 1.25% in the case of the base rate margin. | |||||||
Redemption of acquired debt | $ 2,856,100,000 | $ 337,800,000 | ||||||
Debt instrument, outstanding amount | 6,686,100,000 | $ 2,045,200,000 | ||||||
Loss on extinguishment of debt | $ 44,400,000 | $ 2,300,000 | ||||||
Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of change in cash flows due to debt extinguishment obligation | 10.00% | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument term available for borrowings | 5 years | 5 years | ||||||
Debt principal amount | $ 250,000,000 | |||||||
Credit facility, amount available | $ 245,600,000 | |||||||
Secured leverage ratio | 4.75 | 4.75 | ||||||
Company amortized to interest expense | $ 0 | |||||||
Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 2.00% | 2.00% | ||||||
Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.00% | 1.00% | ||||||
Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 2.25% | 2.25% | ||||||
Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.25% | 1.25% | ||||||
Letter of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt principal amount | $ 25,000,000 | |||||||
Letter of credit sub-facility, outstanding amount | $ 4,400,000 | |||||||
Senior Secured Credit Facilities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, frequency of payments | Quarterly | |||||||
Senior Secured Credit Facilities [Member] | Secured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility collateral, percentage of capital stock of foreign restricted subsidiaries | 65.00% | 65.00% | ||||||
Term B-1 Loan [Member] | Senior Secured Credit Facilities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt principal amount | $ 518,600,000 | |||||||
Debt maturity date | Jul. 8, 2022 | Jul. 8, 2022 | ||||||
Term B-1 Loan [Member] | Senior Secured Credit Facilities [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 2.25% | 2.25% | ||||||
Term B-1 Loan [Member] | Senior Secured Credit Facilities [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.25% | 1.25% | ||||||
Term B-1 Loan [Member] | Senior Secured Credit Facilities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Quarterly payments percentage on remaining principal amount | 0.25% | 0.25% | ||||||
Term B-2 Loan [Member] | Senior Secured Credit Facilities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt principal amount | $ 5,900,000 | |||||||
Debt maturity date | Jul. 8, 2022 | Jul. 8, 2022 | ||||||
Term B-2 Loan [Member] | Senior Secured Credit Facilities [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 2.25% | 2.25% | ||||||
Term B-2 Loan [Member] | Senior Secured Credit Facilities [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.25% | 1.25% | ||||||
Term B-3 Loan [Member] | Senior Secured Credit Facilities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt principal amount | $ 5,046,000 | |||||||
Debt maturity date | Apr. 16, 2025 | Apr. 16, 2025 | ||||||
Secured leverage ratio | 4.75 | 4.75 | ||||||
Term B-3 Loan [Member] | Senior Secured Credit Facilities [Member] | Minimum [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 2.25% | 2.25% | ||||||
Term B-3 Loan [Member] | Senior Secured Credit Facilities [Member] | Minimum [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.25% | 1.25% | ||||||
Term B-3 Loan [Member] | Senior Secured Credit Facilities [Member] | Maximum [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 2.50% | 2.50% | ||||||
Term B-3 Loan [Member] | Senior Secured Credit Facilities [Member] | Maximum [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.50% | 1.50% | ||||||
Term B-3 Loan [Member] | Senior Secured Credit Facilities [Member] | Beginning on September 30, 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Quarterly payments percentage on original principal amount | 0.25% | 0.25% | ||||||
Term B-4 Loan [Member] | Senior Secured Credit Facilities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt principal amount | $ 1,800,000 | |||||||
Debt maturity date | Apr. 16, 2025 | Apr. 16, 2025 | ||||||
Secured leverage ratio | 4.75 | 4.75 | ||||||
Term B-4 Loan [Member] | Senior Secured Credit Facilities [Member] | Minimum [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 2.25% | 2.25% | ||||||
Term B-4 Loan [Member] | Senior Secured Credit Facilities [Member] | Minimum [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.25% | 1.25% | ||||||
Term B-4 Loan [Member] | Senior Secured Credit Facilities [Member] | Maximum [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 2.50% | 2.50% | ||||||
Term B-4 Loan [Member] | Senior Secured Credit Facilities [Member] | Maximum [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.50% | 1.50% | ||||||
Term B-4 Loan [Member] | Senior Secured Credit Facilities [Member] | Beginning on September 30, 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Quarterly payments percentage on original principal amount | 0.25% | 0.25% | ||||||
5.875% Senior Notes due 2023 [Member] | Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, interest rate | 5.875% | 5.875% | ||||||
Debt, due date | 2,023 | |||||||
Senior Secured Credit Facilities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Capitalized financing costs, aggregate amount | $ 37,500,000 | |||||||
DST [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Business acquisition, effective date of acquisition | Apr. 16, 2018 | Apr. 16, 2018 | ||||||
DST [Member] | Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption of acquired debt | $ 600,400,000 | |||||||
DST [Member] | U.S. Mortgage [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt principal amount | $ 4,100,000 | |||||||
DST [Member] | U.K. Mortgage [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt principal amount | £ | £ 21 | |||||||
Debt, interest rate | 3.10% | |||||||
Debt instrument maturity year and month | 2020-10 | 2020-10 | ||||||
Debt instrument, outstanding amount | $ 26,100,000 | |||||||
Debt instrument, periodic principal payment | £ | £ 1 | |||||||
Debt instrument, frequency of principal payments | semi-annually |
Debt - Schedule of Carrying Amo
Debt - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Carrying Amount [Member] | Senior Secured Credit Facilities [Member] | ||
Financial liabilities: | ||
Credit facility | $ 6,729.1 | $ 1,492.2 |
Carrying Amount [Member] | 5.875% Senior Notes due 2023 [Member] | ||
Financial liabilities: | ||
Senior notes | 600 | |
Carrying Amount [Member] | Other Indebtedness [Member] | ||
Financial liabilities: | ||
Credit facility | 30.3 | |
Fair Value [Member] | Senior Secured Credit Facilities [Member] | ||
Financial liabilities: | ||
Credit facility | 6,735.2 | 1,500.8 |
Fair Value [Member] | 5.875% Senior Notes due 2023 [Member] | ||
Financial liabilities: | ||
Credit facility | $ 631.3 | |
Fair Value [Member] | Other Indebtedness [Member] | ||
Financial liabilities: | ||
Credit facility | $ 30.2 |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Total investments | $ 474,800,000 | $ 0 |
Investments in Unconsolidated Affiliates [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 250,500,000 | |
Partnership Interests in Private Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 117,800,000 | |
Marketable Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 41,300,000 | |
Non Marketable Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 45,000,000 | |
Seed Capital Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 19,800,000 | |
Other Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | $ 400,000 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Schedule of Investments [Line Items] | ||
Total investments | $ 474,800,000 | $ 0 |
Investments in private equity funds percentage | 81.00% | |
Private equity fund termination date | 2,019 | |
Private equity fund termination extension period | 2 years | |
Unfunded commitments | $ 0 | |
Partnership Interests in Private Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 117,800,000 | |
Investments, fair value | 110,900,000 | |
Equity method investments, fair value | 6,900,000 | |
Other Private Equity Fund [Member] | ||
Schedule of Investments [Line Items] | ||
Investments, fair value | $ 1,900,000 | |
International Financial Data Services L.P. [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50.00% | |
Amortization period | 15 years | |
International Financial Data Services L.P. [Member] | State Street [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50.00% | |
PRDC, LLC [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50.00% | |
Amortization period | 28 years | |
Broadway Square Partners [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50.00% | |
Amortization period | 40 years |
Investments - Schedule of Reali
Investments - Schedule of Realized and Unrealized Gains and Losses on Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | ||
Unrealized gains on equity securities held as of the end of the period | $ 10.2 | $ 11 |
Realized gains for equity securities sold during the period | 1.7 | 1.7 |
Total gains recognized in other income, net | $ 11.9 | $ 12.7 |
Investments - Schedule of Inves
Investments - Schedule of Investments in Unconsolidated Affiliates (Detail) $ in Millions | Sep. 30, 2018USD ($) |
Schedule of Investments [Line Items] | |
Carrying Value | $ 250.5 |
Excess carrying value of investment over proportionate share of net assets | $ 161.8 |
International Financial Data Services L.P. [Member] | |
Schedule of Investments [Line Items] | |
Ownership Percentage | 50.00% |
Carrying Value | $ 95.9 |
Excess carrying value of investment over proportionate share of net assets | $ 49.2 |
Pershing Road Development Company, LLC [Member] | |
Schedule of Investments [Line Items] | |
Ownership Percentage | 50.00% |
Carrying Value | $ 79.9 |
Excess carrying value of investment over proportionate share of net assets | $ 78.4 |
Broadway Square Partners, LLP [Member] | |
Schedule of Investments [Line Items] | |
Ownership Percentage | 50.00% |
Carrying Value | $ 59.2 |
Excess carrying value of investment over proportionate share of net assets | 33.9 |
Other Unconsolidated Affiliates [Member] | |
Schedule of Investments [Line Items] | |
Carrying Value | 15.5 |
Excess carrying value of investment over proportionate share of net assets | $ 0.3 |
Investments - Schedule of Equit
Investments - Schedule of Equity in Earnings of Unconsolidated Affiliates (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Schedule of Investments [Line Items] | ||
Equity in earnings of unconsolidated affiliates, net | $ 1.7 | $ 2.8 |
International Financial Data Services L.P. [Member] | ||
Schedule of Investments [Line Items] | ||
Equity in earnings of unconsolidated affiliates, net | 0.8 | 2 |
Pershing Road Development Company, LLC [Member] | ||
Schedule of Investments [Line Items] | ||
Equity in earnings of unconsolidated affiliates, net | 0.5 | (0.1) |
Broadway Square Partners, LLP [Member] | ||
Schedule of Investments [Line Items] | ||
Equity in earnings of unconsolidated affiliates, net | 0.2 | 0.2 |
Other Unconsolidated Affiliates [Member] | ||
Schedule of Investments [Line Items] | ||
Equity in earnings of unconsolidated affiliates, net | $ 0.2 | $ 0.7 |
Investments - Summary of Assets
Investments - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] $ in Millions | Sep. 30, 2018USD ($) |
Schedule of Investments [Line Items] | |
Deferred compensation liabilities | $ (27.8) |
Derivative instruments | (1.2) |
Total | 385.7 |
Money Market Funds [Member] | |
Schedule of Investments [Line Items] | |
Investments measured at fair value | 353.6 |
Marketable Equity Securities [Member] | |
Schedule of Investments [Line Items] | |
Investments measured at fair value | 41.3 |
Seed Capital Investments [Member] | |
Schedule of Investments [Line Items] | |
Investments measured at fair value | 19.8 |
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | |
Schedule of Investments [Line Items] | |
Deferred compensation liabilities | (27.8) |
Total | 386.9 |
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 | 353.6 |
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 | 41.3 |
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 | 19.8 |
Significant Other Observable Inputs (Level 2) [Member] | |
Schedule of Investments [Line Items] | |
Derivative instruments | (1.2) |
Total | $ (1.2) |
Goodwill - Summary of Change in
Goodwill - Summary of Change in Carrying Value of Goodwill (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 3,707.8 |
2018 acquisitions | 2,822.8 |
Adjustments to prior acquisitions | 0.2 |
Effect of foreign currency translation | (23.2) |
Ending balance | $ 6,507.6 |
Hedging Transactions and Deri_2
Hedging Transactions and Derivatives Instruments - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Other Income (Expense), Net [Member] | ||
Hedging Transactions and Derivatives Instruments [Line Items] | ||
Expense on fair value of economic hedges | $ 0.5 | $ 0.9 |
Forward Foreign Currency Contracts [Member] | ||
Hedging Transactions and Derivatives Instruments [Line Items] | ||
Derivative, maturity month and year | 2019-03 | |
Foreign Currency Economic Hedges [Member] | ||
Hedging Transactions and Derivatives Instruments [Line Items] | ||
Total notional values | $ 14.5 | $ 14.5 |
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 57 | $ 64.2 | $ 44.5 | $ 163.5 |
Shares: | ||||
Weighted average common shares outstanding — used in calculation of basic EPS | 239.9 | 205.6 | 228.1 | 204.5 |
Weighted average common stock equivalents — options and restricted shares | 12.7 | 6.8 | 11.4 | 6.6 |
Weighted average common and common equivalent shares outstanding — used in calculation of diluted EPS | 252.6 | 212.4 | 239.5 | 211.1 |
Earnings per share - Basic | $ 0.24 | $ 0.31 | $ 0.20 | $ 0.80 |
Earnings per share - Diluted | $ 0.23 | $ 0.30 | $ 0.19 | $ 0.77 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Line Items] | ||||
Dividends paid on common stock | $ 50.7 | $ 39.9 | ||
First Quarter Dividend [Member] | ||||
Earnings Per Share [Line Items] | ||||
Dividend record date | Mar. 1, 2018 | Mar. 1, 2017 | ||
Dividend paid date | Mar. 15, 2018 | Mar. 15, 2017 | ||
Quarterly cash dividend paid | $ 0.07 | $ 0.0625 | ||
Second Quarter Dividend [Member] | ||||
Earnings Per Share [Line Items] | ||||
Dividend record date | Jun. 1, 2018 | Jun. 1, 2017 | ||
Dividend paid date | Jun. 15, 2018 | Jun. 15, 2017 | ||
Quarterly cash dividend paid | $ 0.07 | $ 0.0625 | ||
Third Quarter Dividend [Member] | ||||
Earnings Per Share [Line Items] | ||||
Dividend record date | Sep. 4, 2018 | Sep. 15, 2017 | ||
Dividend paid date | Sep. 18, 2018 | Sep. 15, 2017 | ||
Quarterly cash dividend paid | $ 0.08 | $ 0.07 | ||
Stock options and SARs [Member] | ||||
Earnings Per Share [Line Items] | ||||
Options to purchase shares outstanding | 4.4 | 0.6 | 5.2 | 10.7 |
Equity and Stock Compensation -
Equity and Stock Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Proceeds from common stock issuance, net | $ 1,400 | $ 1,399 | |||
Stock-based compensation expense | $ 18.4 | $ 10.3 | 76.1 | $ 31.6 | |
DST [Member] | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Stock-based compensation expense | 5.9 | 39.2 | |||
One-time charges for accelerated vesting awards | $ 0.7 | $ 28.8 | |||
Common Stock [Member] | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Common stock shares issued | 30.3 | ||||
Common stock offering price to public | $ 47.50 | ||||
Common Stock [Member] | Underwriters' Option [Member] | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Common stock shares issued | 3.9 |
Equity and Stock Compensation_2
Equity and Stock Compensation - Schedule of Accumulated Other Comprehensive Loss Balances, Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance, December 31, 2017 | $ 2,686.4 | |||
Net current period other comprehensive loss | $ (54.2) | $ 19.9 | (84.6) | $ 51.7 |
Balance, September 30, 2018 | 4,223 | 4,223 | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance, December 31, 2017 | (82.7) | |||
Net current period other comprehensive loss | (84.6) | |||
Balance, September 30, 2018 | (167.3) | (167.3) | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance, December 31, 2017 | (82.7) | |||
Net current period other comprehensive loss | (84.6) | |||
Balance, September 30, 2018 | $ (167.3) | $ (167.3) |
Equity and Stock Compensation_3
Equity and Stock Compensation - Schedule of Adjustments to Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Current period translation adjustments, Pretax | $ (54.1) | $ (84.8) |
Net cumulative translation adjustments, Pretax | (54.1) | (84.8) |
Total other comprehensive loss | (54.1) | (84.8) |
Current period translation adjustments, Tax Effect | (0.1) | 0.2 |
Net cumulative translation adjustments, Tax Effect | (0.1) | 0.2 |
Total other comprehensive loss | $ (0.1) | $ 0.2 |
Equity and Stock Compensation_4
Equity and Stock Compensation - Schedule of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 18.4 | $ 10.3 | $ 76.1 | $ 31.6 |
Cost of Software-Enabled Services [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 8 | 2.9 | 29.4 | 8.5 |
Cost of License, Maintenance and Other Related [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 1.1 | 1.1 | 3.4 | 3.3 |
Total Cost of Revenues [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 9.1 | 4 | 32.8 | 11.8 |
Selling and Marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 2.1 | 2.4 | 8.9 | 7.6 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 2 | 1.8 | 6.7 | 5.5 |
General and Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 5.2 | 2.1 | 27.7 | 6.7 |
Total Operating Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 9.3 | $ 6.3 | $ 43.3 | $ 19.8 |
Equity and Stock Compensation_5
Equity and Stock Compensation - Summary of Stock Option and SAR Activity (Detail) | 9 Months Ended |
Sep. 30, 2018shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Outstanding Opening | 31,300,000 |
Granted | 3,900,000 |
Equity awards assumed from DST | 700,000 |
Cancelled/forfeited | (1,100,000) |
Exercised | (3,500,000) |
Number of Shares, Outstanding Closing | 31,300,000 |
Equity and Stock Compensation_6
Equity and Stock Compensation - Summary of RSU Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding Opening | 200,000 |
Equity awards assumed from DST | 2,000,000 |
Vested | (500,000) |
Number of Shares, Outstanding Closing | 1,700,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||||
Effective tax rate | 51.70% | 14.50% | (174.70%) | 16.50% | |
Domestic statutory tax rate | 21.00% | 35.00% | |||
DST [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax benefit related to remeasurement of federal net deferred tax liabilities and enacted state law changes | $ 8.1 | ||||
Stock award windfalls | 18.9 | ||||
Lapse in statute of limitations of previously unrecognized tax benefits | $ 7.1 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Sep. 06, 2018 | Jun. 01, 2018 | Apr. 16, 2018 | Sep. 30, 2018 | Sep. 30, 2018 |
DST [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, effective date of acquisition | Apr. 16, 2018 | ||||
Business acquisition, total consideration | $ 5,100,000,000 | ||||
Non-cash consideration related to fair value of unvested acquired equity awards | $ 48,100,000 | ||||
Restricted cash and cash equivalents | $ 347,000,000 | 347,000,000 | |||
Unrecognized tax benefits | 72,300,000 | $ 72,300,000 | |||
Revenues | 1,030,300,000 | ||||
DST [Member] | Completed Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortized period | 12 years | ||||
DST [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortized period | 14 years | ||||
DST [Member] | Trade Name [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortized period | 12 years | ||||
DST [Member] | Non-Compete Agreement [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortized period | 2 years | ||||
CACEIS [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, effective date of acquisition | Jun. 1, 2018 | ||||
Consideration paid, net of cash plus the costs of transaction | $ 20,000,000 | ||||
Revenues | 3,700,000 | ||||
CACEIS [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortized period | 16 years | ||||
CACEIS and DST [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired accounts receivable not expected to be collected | $ 6,100,000 | $ 6,100,000 | |||
Intralinks Holdings, Inc. [Member] | Siris Capital Group [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, total consideration | $ 1,500,000,000 | ||||
Business acquisition, date of acquisition agreement | Sep. 6, 2018 | ||||
Business combination, consideration payable in cash | $ 1,000,000,000 | ||||
Business combination, consideration payable in equity | $ 500,000,000 | ||||
Number of trading days to determine volume weighted average trading price prior acquisition | 30 days | ||||
Intralinks Holdings, Inc. [Member] | Commitment Parties [Member] | Maximum [Member] | Siris Capital Group [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, financing commitment amount | $ 1,000,000,000 | ||||
Senior Secured Credit Facilities [Member] | DST [Member] | |||||
Business Acquisition [Line Items] | |||||
Amount borrowed in connection with acquisition | 7,400,000,000 | ||||
Amount rolled over from existing credit facility | $ 524,500,000 |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Price for Acquisitions of Acquiree (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Goodwill | $ 6,507.6 | $ 3,707.8 |
CACEIS [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 1.5 | |
Fixed assets | 0.4 | |
Other assets | 0.4 | |
Goodwill | 9.6 | |
Accounts payable | (0.1) | |
Accrued employee compensation and benefits | (0.3) | |
Deferred revenue | (0.1) | |
Deferred income taxes | (1.2) | |
Other liabilities assumed | (0.3) | |
Consideration paid, net of cash acquired | 19.7 | |
CACEIS [Member] | Acquired Client Relationships and Contracts [Member] | ||
Business Acquisition [Line Items] | ||
Acquired client relationships and contracts | 9.8 | |
DST [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 402.6 | |
Fixed assets | 509.3 | |
Other assets | 394.3 | |
Investments | 474 | |
Goodwill | 2,813.2 | |
Current portion of long-term debt | (605.8) | |
Accounts payable | (96.1) | |
Accrued employee compensation and benefits | (175.4) | |
Deferred revenue | (30) | |
Deferred income taxes | (645.4) | |
Long-term debt | (29.4) | |
Client funds obligations | (376.2) | |
Other liabilities assumed | (287.4) | |
Consideration paid, net of cash acquired | 4,661.8 | |
DST [Member] | Acquired Client Relationships and Contracts [Member] | ||
Business Acquisition [Line Items] | ||
Acquired client relationships and contracts | 1,570.1 | |
DST [Member] | Completed Technology [Member] | ||
Business Acquisition [Line Items] | ||
Acquired client relationships and contracts | 563 | |
DST [Member] | Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Acquired client relationships and contracts | 138 | |
DST [Member] | Non-Compete Agreement [Member] | ||
Business Acquisition [Line Items] | ||
Acquired client relationships and contracts | $ 43 |
Acquisitions - Schedule of Seve
Acquisitions - Schedule of Severance Expense Recognized (Detail) - DST [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | $ 4.5 | $ 58.8 |
Total Cost of Revenues [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 3.1 | 37.2 |
Total Cost of Revenues [Member] | Software-enabled Services [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 2.8 | 36.9 |
Total Cost of Revenues [Member] | License, Maintenance and Related [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 0.3 | 0.3 |
Selling and Marketing [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 0.1 | 2.4 |
Research and Development [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 0.3 | 10.3 |
General and Administrative [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 1 | 8.9 |
Total Operating Expenses [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | $ 1.4 | $ 21.6 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Combinations [Abstract] | ||||
Revenues | $ 995.7 | $ 986.7 | $ 2,994.5 | $ 2,881 |
Net income | $ 60.9 | $ 47.6 | $ 166.3 | $ 123.3 |
Basic EPS | $ 0.25 | $ 0.23 | $ 0.73 | $ 0.60 |
Diluted EPS | $ 0.24 | $ 0.22 | $ 0.69 | $ 0.58 |
Basic weighted average number of common shares outstanding | 239.9 | 205.6 | 228.1 | 204.5 |
Diluted weighted average number of common and common equivalent shares outstanding | 252.6 | 212.4 | 239.5 | 211.1 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Eze [Member] $ in Millions | Oct. 01, 2018USD ($) |
Subsequent Event [Line Items] | |
Business acquisition, effective date of acquisition | Oct. 1, 2018 |
Business acquisition, total consideration | $ 1,450 |
Business acquisition funded with incremental long term debt | $ 875 |