Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
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 | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SSNC | |
Entity Registrant Name | SS&C Technologies Holdings Inc | |
Entity Central Index Key | 0001402436 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 252,995,053 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 154.6 | $ 166.7 |
Funds receivable and funds held on behalf of clients | 954.8 | 1,014.7 |
Accounts receivable, net of allowance for doubtful accounts of $9.9 and $9.4, respectively | 686.5 | 681.7 |
Contract asset | 12.7 | 18.5 |
Prepaid expenses and other current assets | 150.1 | 154.5 |
Prepaid income taxes | 12.8 | 5.6 |
Restricted cash and cash equivalents | 5.6 | 6.4 |
Total current assets | 1,977.1 | 2,048.1 |
Property, plant and equipment, net (Note 2) | 516.5 | 553.2 |
Operating lease right-of-use assets (Note 3) | 372.9 | |
Investments (Note 4) | 190.5 | 190.5 |
Unconsolidated affiliates (Note 5) | 239.3 | 239.3 |
Deferred income taxes | 5.5 | 4.8 |
Contract asset | 33.2 | 31.5 |
Goodwill (Note 7) | 7,882.4 | 7,858 |
Intangible and other assets, net of accumulated amortization of $1,534.8 and $1,360.2, respectively | 5,031.9 | 5,182.1 |
Total assets | 16,249.3 | 16,107.5 |
Current liabilities: | ||
Current portion of long-term debt (Note 8) | 85.8 | 87.5 |
Client funds obligations | 954.8 | 1,014.7 |
Accounts payable | 41.8 | 41.4 |
Income taxes payable | 11.1 | |
Accrued employee compensation and benefits | 153.9 | 322 |
Interest payable | 2.4 | 0.2 |
Other accrued expenses | 262.7 | 199.2 |
Deferred revenue | 260.7 | 245.7 |
Total current liabilities | 1,762.1 | 1,921.8 |
Long-term debt, net of current portion (Note 8) | 8,030.3 | 8,168.5 |
Operating lease liabilities (Note 3) | 348.6 | |
Other long-term liabilities | 204.4 | 235.5 |
Deferred income taxes | 1,170.4 | 1,201.7 |
Total liabilities | 11,515.8 | 11,527.5 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity (Note 9): | ||
Preferred stock, $0.01 par value per share, 5.0 million shares authorized; no shares issued | ||
Common stock | 2.5 | 2.5 |
Additional paid-in capital | 4,147.4 | 4,091.4 |
Accumulated other comprehensive loss | (301.2) | (343) |
Retained earnings | 902.8 | 847.1 |
Stockholders' equity before treasury stock | 4,751.5 | 4,598 |
Less: cost of common stock in treasury, 1.6 million shares | (18) | (18) |
Total stockholders’ equity | 4,733.5 | 4,580 |
Total liabilities and stockholders’ equity | 16,249.3 | 16,107.5 |
Class A Non-Voting Common Stock [Member] | ||
Stockholders’ equity (Note 9): | ||
Common stock |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts receivable | $ 9.9 | $ 9.4 |
Accumulated amortization of finite-lived intangible assets | $ 1,534.8 | $ 1,360.2 |
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 | 254,400,000 | 252,400,000 |
Common stock, shares outstanding | 252,800,000 | 250,800,000 |
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 - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenues | $ 1,137.2 | $ 421.9 |
Cost of revenues: | ||
Total cost of revenues | 661.9 | 229.5 |
Gross profit | 475.3 | 192.4 |
Operating expenses: | ||
Selling and marketing | 87 | 31.2 |
Research and development | 94.8 | 38.9 |
General and administrative | 91.5 | 32 |
Transaction expenses | 3.4 | |
Total operating expenses | 273.3 | 105.5 |
Operating income | 202 | 86.9 |
Interest expense, net | (101.6) | (25.3) |
Other income, net | 3.5 | 0.4 |
Loss on extinguishment of debt | (7.1) | |
Income before income taxes | 96.8 | 62 |
Provision for income taxes | 16 | 10.7 |
Net income | $ 80.8 | $ 51.3 |
Basic earnings per share | $ 0.32 | $ 0.25 |
Diluted earnings per share | $ 0.31 | $ 0.24 |
Basic weighted average number of common shares outstanding | 251.5 | 207 |
Diluted weighted average number of common and common equivalent shares outstanding | 263.7 | 217.7 |
Net income | $ 80.8 | $ 51.3 |
Other comprehensive income, net of tax: | ||
Foreign currency exchange translation adjustment | 41.8 | 5.3 |
Total comprehensive income, net of tax | 41.8 | 5.3 |
Comprehensive income | 122.6 | 56.6 |
Software-enabled Services [Member] | ||
Revenues: | ||
Total revenues | 972 | 294.8 |
Cost of revenues: | ||
Total cost of revenues | 586.9 | 167.4 |
License, Maintenance and Related [Member] | ||
Revenues: | ||
Total revenues | 165.2 | 127.1 |
Cost of revenues: | ||
Total cost of revenues | $ 75 | $ 62.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flow from operating activities: | ||
Net income | $ 80.8 | $ 51.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 202.8 | 61.4 |
Net unrealized gains on investments | (7.7) | |
Cash distributions received from unconsolidated affiliates | 0.1 | |
Stock-based compensation expense | 20.4 | 12.7 |
Amortization and write-offs of loan origination costs and original issue discounts | 4.3 | 2.6 |
Loss on sale or disposition of property and equipment | 2.5 | |
Deferred income taxes | (29.6) | (12.4) |
Provision for doubtful accounts | 0.6 | |
Changes in operating assets and liabilities, excluding effects from acquisitions: | ||
Accounts receivable | (2.9) | (19.8) |
Prepaid expenses and other assets | 21.9 | |
Contract assets | 4.2 | 26.8 |
Accounts payable | 3.6 | (10.6) |
Accrued expenses | (161.8) | (54.4) |
Income taxes prepaid and payable | (16.6) | 19.7 |
Deferred revenue | 14.8 | (7.4) |
Net cash provided by operating activities | 137.4 | 69.9 |
Cash flow from investing activities: | ||
Additions to property and equipment | (16.3) | (7.2) |
Cash paid for business acquisitions, net of cash acquired | 3.2 | (0.2) |
Additions to capitalized software | (16.4) | (3.9) |
Collection of other non-current receivables | 2.6 | |
Proceeds from sales / maturities of investments | 10.8 | |
Net cash used in investing activities | (16.1) | (11.3) |
Cash flow from financing activities: | ||
Cash received from debt borrowings | 2,140 | 45 |
Repayments of debt | (2,278.4) | (106.3) |
Net decrease in client funds obligations | (79.3) | |
Proceeds from exercise of stock options | 45.1 | 29.1 |
Withholding taxes paid related to equity award net share settlement | (9.5) | (2.1) |
Fees paid for debt extinguishment and refinancing activities | (4.6) | |
Dividends paid on common stock | (25.2) | (14.5) |
Net cash used in financing activities | (211.9) | (48.8) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.7 | 0.2 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (89.9) | 10 |
Cash, cash equivalents and restricted cash, beginning of period | 1,113.3 | 64.6 |
Cash, cash equivalents and restricted cash and cash equivalents, end of period | 1,023.4 | 74.6 |
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents: | ||
Cash and cash equivalents | 154.6 | 74.1 |
Restricted cash and cash equivalents | 5.6 | 0.5 |
Funds receivable and funds held on behalf of clients | 863.2 | |
Cash and cash equivalents and restricted cash | $ 1,023.4 | $ 74.6 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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 our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (the “SEC”) on March 1, 2019 (the “2018 Form 10-K”). In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments (consisting of only normal recurring adjustments, except as noted elsewhere in the notes to the Condensed Consolidated Financial Statements) necessary for a fair statement of our financial position as of March 31, 2019, the results of our operations for the three months ended March 31, 2019 and 2018, and our cash flows for the three months ended March 31, 2019 and 2018. 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, 2018, which were included in the 2018 Form 10-K. The December 31, 2018 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 months ended March 31, 2019 are not necessarily indicative of the expected results for any subsequent quarters or the full year. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides another transition method no longer requiring application to previously reported periods. We adopted ASU 2016-02, Leases (Topic 842) Our lease portfolio primarily consists of real estate office space with lease terms ranging from 1 to 15 years. Adoption of the new standard resulted in the recording of right-of-use assets and lease payment obligations for our real estate office leases of $387.6 million and $417.8 million, respectively, as of January 1, 2019. As of March 31, 2019, $56.4 million of the lease liability was included in other accrued expenses on the Condensed Consolidated Balance Sheet. The standard did not materially impact our Condensed Consolidated Statement of Comprehensive Income or Condensed Consolidated Statement of Cash Flows. See Note 3, “Leases” for further details. Recent Accounting Pronouncements Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 2—Property, Plant and equipment, net Property, plant and equipment and the related accumulated depreciation are as follows (in millions): March 31, 2019 December 31, 2018 Land $ 40.1 $ 54.8 Building and improvements 304.4 309.5 Equipment, furniture, and fixtures 397.0 384.7 741.5 749.0 Less: accumulated depreciation and amortization (225.0 ) (195.8 ) Total property, plant and equipment, net $ 516.5 $ 553.2 Depreciation expense for the three months ended March 31, 2019 and 2018 was $32.0 million and $6.8 million, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 3—Leases We determine if our contractual agreements contain a lease at inception. A lease is identified when a contract allows us the right to control an identified asset for a period of time in exchange for consideration. Our lease agreements consist primarily of operating leases for office space. Our operating leases are included on the Condensed Consolidated Balance Sheets as operating lease assets and operating lease liabilities. An operating lease asset represents our right to use an underlying asset over the term of a lease while an operating lease liability represents our obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at the commencement date at the present value of the base minimum rent payments. Operating lease assets are also recognized at the commencement date as the total operating lease liability plus prepaid rents and less any deferred rent liabilities that existed under ASC 840. As most of our leases do not provide an implicit rate, we use our estimated secured incremental borrowing rate based on the significant geographic regions in which we operate based on the information available at lease commencement date in determining the present value of lease payments. Our lease agreements typically do not contain variable lease payments, residual value guarantees, or restrictive covenants. Many of our leases include the option to renew, however we do not believe it is reasonably certain that we will exercise the options as each individual lease is evaluated and further negotiated prior to the end of the current lease terms. Generally, our lease agreements include required separate payments for non-lease components (e.g. payments for common area maintenance, real estate taxes and/or utilities) which are expensed as incurred. We do have certain lease agreements that contain bundled minimum payments for lease components (e.g. payments for rent) and non-lease components. In these situations, we have applied the practical expedient available under ASC 842 to not separate the lease and non-lease components for purposes of the right-of-use asset and lease payment obligation calculations. We have certain lease agreements with our unconsolidated real estate joint ventures. We recognized operating lease expense of $0.7 million for the three months ended March 31, 2019 related to these lease agreements. Our total operating lease costs were $19.9 million during the three months ended March 31, 2019. Cash paid for amounts included in the present value of operating lease liabilities was $19.1 million during the three months ended March 31, 2019 and is included in operating cash flows. Our weighted average remaining lease term and weighted average discount rates as of March 31, 2019 were 8.5 years and 4.9%, respectively. Maturities of lease liabilities as of March 31, 2019 were as follows (in millions): Maturity of Lease Liabilities Operating Leases 2019 $ 58.9 2020 75.6 2021 71.3 2022 59.8 2023 49.2 Thereafter 198.3 Total lease payments $ 513.1 Less: Interest (108.1 ) Present value of lease liabilities $ 405.0 Future minimum rental payments under our non-cancelable operating leases as of December 31, 2018, as measured under ASC 840, Leases, were as follows (in millions): Future Minimum Lease Payments Operating Leases 2019 $ 83.8 2020 76.5 2021 71.2 2022 61.6 2023 53.5 Thereafter 204.3 Total lease payments $ 550.9 We have certain sublease agreements in place with 3 rd Maturities of lease payments to be received as of March 31, 2019 were as follows (in millions): Maturity of Lease Payments to be Received Operating Leases 2019 $ 6.9 2020 9.3 2021 7.4 2022 5.4 2023 5.1 Thereafter 11.9 Total lease payments $ 46.0 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 4—Investments Investments are as follows (in millions): March 31, 2019 December 31, 2018 Partnership interests in private equity funds $ 100.7 $ 102.1 Marketable equity securities 35.9 32.6 Non-marketable equity securities 45.4 45.0 Seed capital investments 8.0 10.3 Other investments 0.5 0.5 Total investments $ 190.5 $ 190.5 Realized and unrealized gains and losses for our equity securities are as follows (in millions): Three Months Ended March 31, 2019 Unrealized gains on equity securities held as of the end of the period $ 7.3 Realized losses for equity securities sold during the period (0.2 ) Total gains recognized in other income, net $ 7.1 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 March 31, 2019 and December 31, 2018, we held certain investment assets and certain liabilities that are required to be measured at fair value on a recurring basis. These investments include money market funds, 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 we elected net asset value as a practical expedient for fair value and investments measured using the fair value measurement alternative are excluded from the tables below. Fair value for deferred compensation liabilities that are credited with deemed gains or losses of the underlying hypothetical investments, primarily equity securities, have been classified as Level 1 in the tables below. The following tables present assets and liabilities measured at fair value on a recurring basis (in millions): Fair Value Measurements at Reporting Date Using March 31, 2019 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) $ 640.4 $ 640.4 $ — $ — Marketable equity securities (2) 35.9 35.9 — — Seed capital investments (2) 8.0 8.0 — — Deferred compensation liabilities (3) (24.1 ) (24.1 ) — — Total $ 660.2 $ 660.2 $ — $ — _____________________________________________________ (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. Fair Value Measurements at Reporting Date Using December 31, 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) $ 558.0 $ 558.0 $ — $ — Marketable equity securities (2) 32.6 32.6 — — Seed capital investments (2) 10.3 10.3 — — Deferred compensation liabilities (3) (23.3 ) (23.3 ) — — Derivative instruments (4) (0.3 ) — (0.3 ) — Total $ 577.3 $ 577.6 $ (0.3 ) $ — _____________________________________________________ (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. During the three months ended March 31, 2019, the fair value of our non-marketable equity securities was adjusted upward by $0.4 million. We have partnership interests in various private equity funds that are not included in the tables above. Our investments in private equity funds were $100.7 million at March 31, 2019, of which $93.5 million were measured using net asset value as a practical expedient for fair value and $7.2 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 our investments in private equity funds as of March 31, 2019, representing 78% 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. We have no management rights associated with our 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. We expect 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. We have no unfunded commitments related to this fund. Future capital commitments related to our other private equity fund investments were approximately $1.8 million as of March 31, 2019. Generally, our investments in private equity funds are non-transferable or are subject to long holding periods, and withdrawals from the private equity firm partnerships are typically not permitted. Even when transfer restrictions do not apply, there is generally no public market for the securities. Therefore, we may not be able to sell the securities at a time when we desire to do so. We may not always be able to sell those investments at the same or higher prices than we paid for them. As of March 31, 2019, we did not have plans to sell any of these investments. The maximum risk of loss related to our 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 we believe are unlikely to be called by the general partner . |
Unconsolidated Affiliates
Unconsolidated Affiliates | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Unconsolidated Affiliates | Note 5—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 March 31, 2019 March 31, 2019 International Financial Data Services L.P. 50% $ 93.9 $ 47.5 Pershing Road Development Company, LLC 50% 79.6 77.0 Broadway Square Partners, LLP 50% 53.3 33.0 Other unconsolidated affiliates 12.5 — Total $ 239.3 $ 157.5 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. We record our proportionate share of the results of the unconsolidated affiliates and amortization expense related to basis differences in Equity in earnings of unconsolidated affiliates, net on the Condensed Consolidated Statement of Comprehensive Income. Equity in earnings of unconsolidated affiliates are as follows (in millions): Three Months Ended March 31, 2019 International Financial Data Services L.P. $ 0.7 Pershing Road Development Company, LLC 0.5 Broadway Square Partners, LLP 0.3 Other unconsolidated affiliates (1.5 ) Total $ — |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note 6—Acquisitions The following unaudited pro forma information are provided for illustrative purposes only and assume that the acquisitions of DST Systems, Inc. (“DST”), CACEIS North America, Eze Software Group, LLC and Intralinks Holdings, Inc. occurred on January 1, 2017, after giving effect to certain adjustments, including amortization of intangibles, interest, transaction costs and tax effects. 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. Three Months Ended March 31, 2019 2018 Revenues $ 1,145.8 $ 1,153.7 Net income $ 87.1 $ 21.4 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 7—Goodwill The change in carrying value of goodwill as of and for the three months ended March 31, 2019 is as follows (in millions): Balance at December 31, 2018 $ 7,858.0 Adjustments to prior acquisitions (2.3 ) Effect of foreign currency translation 26.7 Balance at March 31, 2019 $ 7,882.4 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 8—Debt At March 31, 2019 and December 31, 2018, debt consisted of the following (in millions): March 31, 2019 December 31, 2018 Senior secured credit facilities, weighted-average interest rate of 4.75% and 4.77%, respectively $ 6,161.1 $ 8,319.1 5.5% senior notes due 2027 2,000.0 — Senior secured credit facilities revolving portion 20.0 — Other indebtedness 28.4 28.2 Unamortized original issue discount and debt issuance costs (93.4 ) (91.3 ) 8,116.1 8,256.0 Less current portion of long-term debt 85.8 87.5 Long-term debt $ 8,030.3 $ 8,168.5 Senior Notes On March 28, 2019, SS&C issued $2.0 billion aggregate principal amount of 5.5% Senior Notes due 2027 (“Senior Notes”), the proceeds of which were used to repay a portion of the outstanding Term B-3 Loan under our existing senior secured credit facilities. The Senior Notes are guaranteed, jointly and severally, by SS&C Holdings and all of its existing and future domestic restricted subsidiaries that guarantee our existing senior secured credit facilities or certain other indebtedness. The Senior Notes are unsecured senior obligations that are equal in right of payment to all of our existing and future senior unsecured indebtedness. Interest on the Senior Notes is payable on March 30 and September 30 of each year. At any time prior to March 30, 2022, we may, at our option, redeem the Senior Notes, in whole or in part, at a price equal to 100% of the principal amount of the Senior Notes, plus an applicable “make-whole” premium, plus accrued and unpaid interest to the redemption date. At any time on or after March 30, 2022, we may redeem some or all of the Senior Notes, in whole or in part, at the redemption prices set forth in the indenture governing the Senior Notes plus accrued and unpaid interest to the redemption date. In addition, at any time on or before March 30, 2022, we may redeem up to 40% of the aggregate principal amount of the Senior Notes at a redemption price equal to 105.5% of the principal amount thereof, plus accrued and unpaid interest to the redemption date, with the net proceeds of one or more equity offerings. The indenture governing the Senior Notes contains a number of covenants that restrict, subject to certain thresholds and exceptions, our ability and the ability of our domestic restricted subsidiaries to incur debt or liens, make certain investments, pay dividends, dispose of certain assets, or enter into transactions with its affiliates. Any event of default under the Credit Agreement that leads to an acceleration of those amounts due also results in a default under the indenture governing the Senior Notes. Debt issuance costs and loss on extinguishment of debt We evaluated the issuance of our Senior Notes and repayment of a portion of our , in accordance with FASB Accounting Standards Codification 470-50, Debt-Modifications and Extinguishments , for modification and extinguishment accounting. We accounted for the refinancing as a debt modification with respect to amounts that remained obligations of the same lender with minor changes in cash flows and as a debt extinguishment with respect to amounts that were obligations of lenders which remained but experienced a change in cash flows of greater than 10%. As a result, we capitalized an aggregate of $6.1 million in financing costs during the three months ended March 31, 2019. Other costs incurred by us in connection with the Senior Notes, of $7.1 million, which did not meet the criteria for capitalization, are included in Loss on extinguishment of debt in the Condensed Consolidated Statement of Comprehensive Income during the three months ended March 31, 2019. Fair value of debt. The carrying amounts and fair values of financial instruments are as follows (in millions): March 31, 2019 December 31, 2018 Carrying Fair Carrying Fair Amount Value Amount Value Financial liabilities: Senior secured credit facilities $ 6,161.1 $ 6,103.6 $ 8,319.1 $ 7,847.4 5.5% senior notes due 2027 2,000.0 2,020.0 — — Senior secured credit facilities, revolving portion 20.0 19.7 — — Other indebtedness 28.4 28.6 28.2 28.3 The above fair values, which are Level 2 liabilities, were computed based on comparable quoted market prices. The fair values of cash, accounts receivable, net, short-term borrowings, and accounts payable approximate the carrying amounts due to the short-term maturities of these instruments. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 9—Stockholders’ equity Changes in stockholders’ equity for the three months ended March 31, 2019 were as follows (in millions, except per share data): Common Stock Number Accumulated of Additional Other Total Issued Paid-in Retained Comprehensive Treasury Stockholders’ Shares Amount Capital Earnings (Loss) Income Stock Equity Balance, at December 31, 2018 252.4 $ 2.5 $ 4,091.4 $ 847.1 $ (343.0 ) $ (18.0 ) $ 4,580.0 Net income — — — 80.8 — — 80.8 Foreign exchange translation adjustment — — — — 41.8 — 41.8 Stock-based compensation expense — — 20.4 — — — 20.4 Exercise of options, net of withholding taxes 2.0 — 35.6 — — — 35.6 Cash dividends declared - $0.10 per share — — — (25.2 ) — — (25.2 ) Other — — — 0.1 — — 0.1 Balance, at March 31, 2019 254.4 $ 2.5 $ 4,147.4 $ 902.8 $ (301.2 ) $ (18.0 ) $ 4,733.5 Changes in stockholders’ equity for the three months ended March 31, 2018 were as follows (in millions, except per share data): Common Stock Number Accumulated of Additional Other Total Issued Paid-in Retained Comprehensive Treasury Stockholders’ Shares Amount Capital Earnings (Loss) Income Stock Equity Balance, at December 31, 2017 208.1 $ 2.1 $ 2,018.1 $ 766.9 $ (82.7 ) $ (18.0 ) $ 2,686.4 Net income — — — 51.3 — — 51.3 Foreign exchange translation adjustment — — — — 5.3 — 5.3 Stock-based compensation expense — — 12.7 — — — 12.7 Exercise of options, net of withholding taxes 1.3 — 27.0 — — — 27.0 Cumulative effect of accounting change — — — 47.9 — — 47.9 Cash dividends declared - $0.07 per share — — — (14.5 ) — — (14.5 ) Other — — — (0.1 ) — — (0.1 ) Balance, at March 31, 2018 209.4 $ 2.1 $ 2,057.8 $ 851.5 $ (77.4 ) $ (18.0 ) $ 2,816.0 Accumulated Accumulated other comprehensive loss balances, net of tax consist of the following (in millions): Foreign Currency Translation Accumulated Other Comprehensive Loss Balance, December 31, 2018 $ (343.0 ) $ (343.0 ) Net current period other comprehensive income 41.8 41.8 Balance, March 31, 2019 $ (301.2 ) $ (301.2 ) Adjustments to accumulated other comprehensive income (loss) are as follows (in millions): Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Pretax Tax Effect Pretax Tax Effect Cumulative translation adjustments Current period translation adjustments $ 42.0 $ (0.2 ) $ 5.3 $ — Net cumulative translation adjustments 42.0 (0.2 ) 5.3 — Total other comprehensive income (loss) $ 42.0 $ (0.2 ) $ 5.3 $ — Dividends . During the three months ended March 31, 2019, we paid a quarterly cash dividend of $0.10 per share of common stock totaling $25.2 million in the aggregate. During the three months ended March 31, 2018, we paid a quarterly cash dividend of $0.07 per share of common stock totaling $14.5 million in the aggregate. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | Note 10—Revenues We generate revenues primarily through our software-enabled services. Our software-enabled services are generally provided under contracts with initial terms of one to five years that require monthly or quarterly payments and are subject to automatic annual renewal at the end of the initial term unless terminated by either party. We also generate revenues by licensing our software to clients through either perpetual or term licenses and by selling maintenance services. Maintenance services are generally provided under annually renewable contracts. Our pricing typically scales as a function of our clients’ assets under management, the complexity of asset classes managed, the volume of transactions, and the level of service the client requires. Revenues from professional services consist mostly of services provided on a time and materials basis. Deferred revenues primarily represent unrecognized fees billed or collected for maintenance and professional services. Deferred revenues are recognized as (or when) we perform under the contract. Deferred revenues are recorded on a net basis with contract assets at the contract level. Accordingly, as of March 31, 2019 and December 31, 2018, approximately $37.5 million and $32.4 million, respectively, of deferred revenue is presented net within contract assets arising from the same contracts. The amount of revenues recognized in the period that was included in the opening deferred revenues balance was $99.9 million and $76.5 million for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, revenue of approximately $345.4 million is expected to be recognized from remaining performance obligations for license, maintenance and related revenues, of which $229.8 million is expected to be recognized over the next twelve months. We record revenue net of any taxes assessed by governmental authorities. Revenue Disaggregation The following table disaggregates our revenues by geography (in millions): Three Months Ended March 31, 2019 2018 United States $ 828.3 $ 302.7 United Kingdom 166.3 32.0 Asia-Pacific and Japan 51.6 29.0 Europe (excluding United Kingdom), Middle East and Africa 48.3 27.8 Canada 27.2 18.3 Americas, excluding United States and Canada 15.5 12.1 Total $ 1,137.2 $ 421.9 The following table disaggregates our revenues by source (in millions): Three Months Ended March 31, 2019 2018 Software-enabled services $ 972.0 $ 294.8 Maintenance and term licenses 130.1 107.7 Professional services 20.0 15.0 Perpetual licenses 15.1 4.4 Total $ 1,137.2 $ 421.9 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stock Based Compensation | Note 11—Stock Based Compensation Total stock options, SARs, RSUs and RSAs . The amount of stock-based compensation expense recognized in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018 was as follows (in millions): For the Three Months Ended March 31, Condensed Consolidated Statements of Comprehensive Income Classification 2019 2018 Cost of software-enabled services $ 8.6 $ 3.5 Cost of license, maintenance and other related 1.4 1.1 Total cost of revenues 10.0 4.6 Selling and marketing 3.0 2.7 Research and development 2.6 2.1 General and administrative 4.8 3.3 Total operating expenses 10.4 8.1 Total stock-based compensation expense $ 20.4 $ 12.7 The following table summarizes stock option and stock appreciation rights (“SARs”) activity as of and for the three months ended March 31, 2019 (shares in millions): Shares Outstanding at December 31, 2018 39.8 Cancelled/forfeited (0.3 ) Exercised (2.0 ) Outstanding at March 31, 2019 37.5 The following table summarizes restricted stock unit (“RSUs”) activity as of and for the three months ended March 31, 2019 (shares in millions): Shares Outstanding at December 31, 2018 1.4 Vested (0.3 ) Outstanding at March 31, 2019 1.1 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12—Income Taxes The effective tax rate was 16.5% and 17.2% for the three months ended March 31, 2019 and 2018, respectively. The change in the effective tax rate for the three months ended March 31, 2019 was primarily due to the increased recognition of windfall tax benefits from stock awards in the current year, partially offset by a proportionate change in the composition of income before income taxes from foreign and domestic tax jurisdictions. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 13—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 our 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, SARs, 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): Three Months Ended March 31, 2019 2018 Net income $ 80.8 $ 51.3 Shares: Weighted average common shares outstanding — used in calculation of basic EPS 251.5 207.0 Weighted average common stock equivalents — options and restricted shares 12.2 10.7 Weighted average common and common equivalent shares outstanding — used in calculation of diluted EPS 263.7 217.7 Earnings per share - Basic $ 0.32 $ 0.25 Earnings per share - Diluted $ 0.31 $ 0.24 Stock options and SARs representing 5.7 and 0.2 million shares were outstanding for the three months ended March 31, 2019 and 2018, respectively, but were not included in the computation of diluted EPS because the effect of including them would be anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14—Commitments and Contingencies From time to time, we are subject to legal proceedings and claims. In the opinion of management, we are not involved in any litigation or proceedings that would have a material adverse effect on us or our 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. We intend to defend this case vigorously, and, because it is still in its preliminary stages, have not yet determined what effect this lawsuit will have, if any, on our 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. In March 2019, DST agreed to extend the statute of limitations applicable to such a lawsuit based on a request from the Department of Labor as its investigation is ongoing. We have not yet determined what effect this matter will have, if any, on our 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, 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, the Advisory Committee of the Plan, and the Compensation Committee of DST’s Board of Directors have been named in 278 substantially similar individual demands for arbitration through April 22, 2019, 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. As of April 22, 2019, the parties jointly submitted 21 of the demands for arbitration to the American Arbitration Association. The remaining demands for arbitration have not yet been submitted. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 15—Subsequent Event On April 29, 2019, we announced that a Cook County Illinois jury found Clearwater Analytics liable for willfully and maliciously stealing our trade secrets and we were awarded approximately $44.0 million in damages, $28 million of which were punitive. The judgement remains subject to post-trial motions and appeal. This award is not reflected in the accompanying financial statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides another transition method no longer requiring application to previously reported periods. We adopted ASU 2016-02, Leases (Topic 842) Our lease portfolio primarily consists of real estate office space with lease terms ranging from 1 to 15 years. Adoption of the new standard resulted in the recording of right-of-use assets and lease payment obligations for our real estate office leases of $387.6 million and $417.8 million, respectively, as of January 1, 2019. As of March 31, 2019, $56.4 million of the lease liability was included in other accrued expenses on the Condensed Consolidated Balance Sheet. The standard did not materially impact our Condensed Consolidated Statement of Comprehensive Income or Condensed Consolidated Statement of Cash Flows. See Note 3, “Leases” for further details. |
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 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment and Related Accumulated Depreciation | Property, plant and equipment and the related accumulated depreciation are as follows (in millions): March 31, 2019 December 31, 2018 Land $ 40.1 $ 54.8 Building and improvements 304.4 309.5 Equipment, furniture, and fixtures 397.0 384.7 741.5 749.0 Less: accumulated depreciation and amortization (225.0 ) (195.8 ) Total property, plant and equipment, net $ 516.5 $ 553.2 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of March 31, 2019 were as follows (in millions): Maturity of Lease Liabilities Operating Leases 2019 $ 58.9 2020 75.6 2021 71.3 2022 59.8 2023 49.2 Thereafter 198.3 Total lease payments $ 513.1 Less: Interest (108.1 ) Present value of lease liabilities $ 405.0 |
Schedule of Future Minimum Rental Payments under Non-cancelable Operating Leases | Future minimum rental payments under our non-cancelable operating leases as of December 31, 2018, as measured under ASC 840, Leases, were as follows (in millions): Future Minimum Lease Payments Operating Leases 2019 $ 83.8 2020 76.5 2021 71.2 2022 61.6 2023 53.5 Thereafter 204.3 Total lease payments $ 550.9 |
Schedule of Maturities of Lease Payments to be Received | Maturities of lease payments to be received as of March 31, 2019 were as follows (in millions): Maturity of Lease Payments to be Received Operating Leases 2019 $ 6.9 2020 9.3 2021 7.4 2022 5.4 2023 5.1 Thereafter 11.9 Total lease payments $ 46.0 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Investments | Investments are as follows (in millions): March 31, 2019 December 31, 2018 Partnership interests in private equity funds $ 100.7 $ 102.1 Marketable equity securities 35.9 32.6 Non-marketable equity securities 45.4 45.0 Seed capital investments 8.0 10.3 Other investments 0.5 0.5 Total investments $ 190.5 $ 190.5 |
Schedule of Realized and Unrealized Gains and Losses on Investments | Realized and unrealized gains and losses for our equity securities are as follows (in millions): Three Months Ended March 31, 2019 Unrealized gains on equity securities held as of the end of the period $ 7.3 Realized losses for equity securities sold during the period (0.2 ) Total gains recognized in other income, net $ 7.1 |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present assets and liabilities measured at fair value on a recurring basis (in millions): Fair Value Measurements at Reporting Date Using March 31, 2019 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) $ 640.4 $ 640.4 $ — $ — Marketable equity securities (2) 35.9 35.9 — — Seed capital investments (2) 8.0 8.0 — — Deferred compensation liabilities (3) (24.1 ) (24.1 ) — — Total $ 660.2 $ 660.2 $ — $ — _____________________________________________________ (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. Fair Value Measurements at Reporting Date Using December 31, 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) $ 558.0 $ 558.0 $ — $ — Marketable equity securities (2) 32.6 32.6 — — Seed capital investments (2) 10.3 10.3 — — Deferred compensation liabilities (3) (23.3 ) (23.3 ) — — Derivative instruments (4) (0.3 ) — (0.3 ) — Total $ 577.3 $ 577.6 $ (0.3 ) $ — _____________________________________________________ (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. |
Unconsolidated Affiliates (Tabl
Unconsolidated Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
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 March 31, 2019 March 31, 2019 International Financial Data Services L.P. 50% $ 93.9 $ 47.5 Pershing Road Development Company, LLC 50% 79.6 77.0 Broadway Square Partners, LLP 50% 53.3 33.0 Other unconsolidated affiliates 12.5 — Total $ 239.3 $ 157.5 |
Schedule of Equity in Earnings of Unconsolidated Affiliates | Equity in earnings of unconsolidated affiliates are as follows (in millions): Three Months Ended March 31, 2019 International Financial Data Services L.P. $ 0.7 Pershing Road Development Company, LLC 0.5 Broadway Square Partners, LLP 0.3 Other unconsolidated affiliates (1.5 ) Total $ — |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Unaudited Pro Forma Information | The following unaudited pro forma information are provided for illustrative purposes only and assume that the acquisitions of DST Systems, Inc. (“DST”), CACEIS North America, Eze Software Group, LLC and Intralinks Holdings, Inc. occurred on January 1, 2017, after giving effect to certain adjustments, including amortization of intangibles, interest, transaction costs and tax effects. 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. Three Months Ended March 31, 2019 2018 Revenues $ 1,145.8 $ 1,153.7 Net income $ 87.1 $ 21.4 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 is as follows (in millions): Balance at December 31, 2018 $ 7,858.0 Adjustments to prior acquisitions (2.3 ) Effect of foreign currency translation 26.7 Balance at March 31, 2019 $ 7,882.4 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Component of Debt | At March 31, 2019 and December 31, 2018, debt consisted of the following (in millions): March 31, 2019 December 31, 2018 Senior secured credit facilities, weighted-average interest rate of 4.75% and 4.77%, respectively $ 6,161.1 $ 8,319.1 5.5% senior notes due 2027 2,000.0 — Senior secured credit facilities revolving portion 20.0 — Other indebtedness 28.4 28.2 Unamortized original issue discount and debt issuance costs (93.4 ) (91.3 ) 8,116.1 8,256.0 Less current portion of long-term debt 85.8 87.5 Long-term debt $ 8,030.3 $ 8,168.5 |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of financial instruments are as follows (in millions): March 31, 2019 December 31, 2018 Carrying Fair Carrying Fair Amount Value Amount Value Financial liabilities: Senior secured credit facilities $ 6,161.1 $ 6,103.6 $ 8,319.1 $ 7,847.4 5.5% senior notes due 2027 2,000.0 2,020.0 — — Senior secured credit facilities, revolving portion 20.0 19.7 — — Other indebtedness 28.4 28.6 28.2 28.3 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Changes in stockholders' Equity | Changes in stockholders’ equity for the three months ended March 31, 2019 were as follows (in millions, except per share data): Common Stock Number Accumulated of Additional Other Total Issued Paid-in Retained Comprehensive Treasury Stockholders’ Shares Amount Capital Earnings (Loss) Income Stock Equity Balance, at December 31, 2018 252.4 $ 2.5 $ 4,091.4 $ 847.1 $ (343.0 ) $ (18.0 ) $ 4,580.0 Net income — — — 80.8 — — 80.8 Foreign exchange translation adjustment — — — — 41.8 — 41.8 Stock-based compensation expense — — 20.4 — — — 20.4 Exercise of options, net of withholding taxes 2.0 — 35.6 — — — 35.6 Cash dividends declared - $0.10 per share — — — (25.2 ) — — (25.2 ) Other — — — 0.1 — — 0.1 Balance, at March 31, 2019 254.4 $ 2.5 $ 4,147.4 $ 902.8 $ (301.2 ) $ (18.0 ) $ 4,733.5 Changes in stockholders’ equity for the three months ended March 31, 2018 were as follows (in millions, except per share data): Common Stock Number Accumulated of Additional Other Total Issued Paid-in Retained Comprehensive Treasury Stockholders’ Shares Amount Capital Earnings (Loss) Income Stock Equity Balance, at December 31, 2017 208.1 $ 2.1 $ 2,018.1 $ 766.9 $ (82.7 ) $ (18.0 ) $ 2,686.4 Net income — — — 51.3 — — 51.3 Foreign exchange translation adjustment — — — — 5.3 — 5.3 Stock-based compensation expense — — 12.7 — — — 12.7 Exercise of options, net of withholding taxes 1.3 — 27.0 — — — 27.0 Cumulative effect of accounting change — — — 47.9 — — 47.9 Cash dividends declared - $0.07 per share — — — (14.5 ) — — (14.5 ) Other — — — (0.1 ) — — (0.1 ) Balance, at March 31, 2018 209.4 $ 2.1 $ 2,057.8 $ 851.5 $ (77.4 ) $ (18.0 ) $ 2,816.0 |
Schedule of Accumulated Other Comprehensive Loss Balances, Net of Tax | Accumulated Accumulated other comprehensive loss balances, net of tax consist of the following (in millions): Foreign Currency Translation Accumulated Other Comprehensive Loss Balance, December 31, 2018 $ (343.0 ) $ (343.0 ) Net current period other comprehensive income 41.8 41.8 Balance, March 31, 2019 $ (301.2 ) $ (301.2 ) |
Schedule of Adjustments to Accumulated Other Comprehensive Income (Loss) | Adjustments to accumulated other comprehensive income (loss) are as follows (in millions): Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Pretax Tax Effect Pretax Tax Effect Cumulative translation adjustments Current period translation adjustments $ 42.0 $ (0.2 ) $ 5.3 $ — Net cumulative translation adjustments 42.0 (0.2 ) 5.3 — Total other comprehensive income (loss) $ 42.0 $ (0.2 ) $ 5.3 $ — |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenues by Geography and Source | The following table disaggregates our revenues by geography (in millions): Three Months Ended March 31, 2019 2018 United States $ 828.3 $ 302.7 United Kingdom 166.3 32.0 Asia-Pacific and Japan 51.6 29.0 Europe (excluding United Kingdom), Middle East and Africa 48.3 27.8 Canada 27.2 18.3 Americas, excluding United States and Canada 15.5 12.1 Total $ 1,137.2 $ 421.9 The following table disaggregates our revenues by source (in millions): Three Months Ended March 31, 2019 2018 Software-enabled services $ 972.0 $ 294.8 Maintenance and term licenses 130.1 107.7 Professional services 20.0 15.0 Perpetual licenses 15.1 4.4 Total $ 1,137.2 $ 421.9 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Stock-Based Compensation Expense Recognized | Total stock options, SARs, RSUs and RSAs . The amount of stock-based compensation expense recognized in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018 was as follows (in millions): For the Three Months Ended March 31, Condensed Consolidated Statements of Comprehensive Income Classification 2019 2018 Cost of software-enabled services $ 8.6 $ 3.5 Cost of license, maintenance and other related 1.4 1.1 Total cost of revenues 10.0 4.6 Selling and marketing 3.0 2.7 Research and development 2.6 2.1 General and administrative 4.8 3.3 Total operating expenses 10.4 8.1 Total stock-based compensation expense $ 20.4 $ 12.7 |
Summary of Stock Option and Stock Appreciation Rights ("SARs") Activity | The following table summarizes stock option and stock appreciation rights (“SARs”) activity as of and for the three months ended March 31, 2019 (shares in millions): Shares Outstanding at December 31, 2018 39.8 Cancelled/forfeited (0.3 ) Exercised (2.0 ) Outstanding at March 31, 2019 37.5 |
Summary of Restricted Stock Unit ("RSUs") Activity | The following table summarizes restricted stock unit (“RSUs”) activity as of and for the three months ended March 31, 2019 (shares in millions): Shares Outstanding at December 31, 2018 1.4 Vested (0.3 ) Outstanding at March 31, 2019 1.1 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted EPS (in millions, except per share amounts): Three Months Ended March 31, 2019 2018 Net income $ 80.8 $ 51.3 Shares: Weighted average common shares outstanding — used in calculation of basic EPS 251.5 207.0 Weighted average common stock equivalents — options and restricted shares 12.2 10.7 Weighted average common and common equivalent shares outstanding — used in calculation of diluted EPS 263.7 217.7 Earnings per share - Basic $ 0.32 $ 0.25 Earnings per share - Diluted $ 0.31 $ 0.24 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
Basis Of Presentation [Line Items] | ||
Operating lease right-of-use assets | $ 372.9 | |
Lease liabilities for operating leases | 405 | |
Real Estate Office Space [Member] | ||
Basis Of Presentation [Line Items] | ||
Lease liabilities for operating leases current | $ 56.4 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesCurrent | |
Real Estate Office Space [Member] | Minimum [Member] | ||
Basis Of Presentation [Line Items] | ||
Operating lease, term | 1 year | |
Real Estate Office Space [Member] | Maximum [Member] | ||
Basis Of Presentation [Line Items] | ||
Operating lease, term | 15 years | |
Real Estate Office Space [Member] | ASU 2016-02 [Member] | ||
Basis Of Presentation [Line Items] | ||
Operating lease right-of-use assets | $ 387.6 | |
Lease liabilities for operating leases | $ 417.8 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment and Related Accumulated Depreciation (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 741.5 | $ 749 |
Less: accumulated depreciation and amortization | (225) | (195.8) |
Total property, plant and equipment, net | 516.5 | 553.2 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 40.1 | 54.8 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 304.4 | 309.5 |
Equipment, Furniture, and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 397 | $ 384.7 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 32 | $ 6.8 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | |
Operating lease, existence of residual value guarantee [true false] | false |
Operating lease, option to extend, description | Many of our leases include the option to renew, however we do not believe it is reasonably certain that we will exercise the options as each individual lease is evaluated and further negotiated prior to the end of the current lease terms. |
Operating lease, assumptions allocation of lease and nonlease component, description | Generally, our lease agreements include required separate payments for non-lease components (e.g. payments for common area maintenance, real estate taxes and/or utilities) which are expensed as incurred. We do have certain lease agreements that contain bundled minimum payments for lease components (e.g. payments for rent) and non-lease components. In these situations, we have applied the practical expedient available under ASC 842 to not separate the lease and non-lease components for purposes of the right-of-use asset and lease payment obligation calculations. |
Operating lease costs | $ 19.9 |
Cash paid for operating lease liabilities included in operating cashflows | $ 19.1 |
Weighted average remaining lease term | 8 years 6 months |
Weighted average discount rates | 4.90% |
Sublease Agreements [Member] | Real Estate Office Space [Member] | |
Lessee Lease Description [Line Items] | |
Total gross sublease and other rental income | $ 2.5 |
Lease Agreements [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease expense | $ 0.7 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Maturity of Lease Liabilities | |
2019 | $ 58.9 |
2020 | 75.6 |
2021 | 71.3 |
2022 | 59.8 |
2023 | 49.2 |
Thereafter | 198.3 |
Total lease payments | 513.1 |
Less: Interest | (108.1) |
Present value of lease liabilities | $ 405 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments under Non-cancelable Operating Leases (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Future Minimum Lease Payments | |
2019 | $ 83.8 |
2020 | 76.5 |
2021 | 71.2 |
2022 | 61.6 |
2023 | 53.5 |
Thereafter | 204.3 |
Total lease payments | $ 550.9 |
Leases - Schedule of Maturiti_2
Leases - Schedule of Maturities of Lease Payments to be Received (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Maturity of Lease Payments to be Received | |
2019 | $ 6.9 |
2020 | 9.3 |
2021 | 7.4 |
2022 | 5.4 |
2023 | 5.1 |
Thereafter | 11.9 |
Total lease payments | $ 46 |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Total investments | $ 190.5 | $ 190.5 |
Partnership Interests in Private Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 100.7 | 102.1 |
Marketable Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 35.9 | 32.6 |
Non Marketable Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 45.4 | 45 |
Seed Capital Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 8 | 10.3 |
Other Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | $ 0.5 | $ 0.5 |
Investments - Schedule of Reali
Investments - Schedule of Realized and Unrealized Gains and Losses on Investments (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Unrealized gains on equity securities held as of the end of the period | $ 7.3 |
Realized losses for equity securities sold during the period | (0.2) |
Total gains recognized in other income, net | $ 7.1 |
Investments - Summary of Assets
Investments - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Deferred compensation liabilities | $ (24.1) | $ (23.3) |
Derivative instruments | (0.3) | |
Total | 660.2 | 577.3 |
Money Market Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Investments measured at fair value | 640.4 | 558 |
Marketable Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investments measured at fair value | 35.9 | 32.6 |
Seed Capital Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Investments measured at fair value | 8 | 10.3 |
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Investments [Line Items] | ||
Deferred compensation liabilities | (24.1) | (23.3) |
Total | 660.2 | 577.6 |
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 | 640.4 | 558 |
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 | 35.9 | 32.6 |
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 | $ 8 | 10.3 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Schedule of Investments [Line Items] | ||
Derivative instruments | (0.3) | |
Total | $ (0.3) |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | ||
Total investments | $ 190,500,000 | $ 190,500,000 |
Investments in private equity funds percentage | 78.00% | |
Private equity fund termination date | 2019 | |
Private equity fund termination extension period | 2 years | |
Unfunded commitments | $ 0 | |
Non Marketable Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value, adjusted upward | 400,000 | |
Total investments | 45,400,000 | 45,000,000 |
Partnership Interests in Private Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 100,700,000 | $ 102,100,000 |
Investments, fair value | 93,500,000 | |
Equity method investments, fair value | 7,200,000 | |
Other Private Equity Fund [Member] | ||
Schedule of Investments [Line Items] | ||
Investments, fair value | $ 1,800,000 |
Unconsolidated Affiliates - Sch
Unconsolidated Affiliates - Schedule of Investments in Unconsolidated Affiliates (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Carrying Value | $ 239.3 | $ 239.3 |
Excess carrying value of investment over proportionate share of net assets | $ 157.5 | |
International Financial Data Services L.P. [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50.00% | |
Carrying Value | $ 93.9 | |
Excess carrying value of investment over proportionate share of net assets | $ 47.5 | |
Pershing Road Development Company, LLC [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50.00% | |
Carrying Value | $ 79.6 | |
Excess carrying value of investment over proportionate share of net assets | $ 77 | |
Broadway Square Partners, LLP [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50.00% | |
Carrying Value | $ 53.3 | |
Excess carrying value of investment over proportionate share of net assets | 33 | |
Other Unconsolidated Affiliates [Member] | ||
Schedule of Investments [Line Items] | ||
Carrying Value | $ 12.5 |
Unconsolidated Affiliates - S_2
Unconsolidated Affiliates - Schedule of Equity in Earnings of Unconsolidated Affiliates (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
International Financial Data Services L.P. [Member] | |
Schedule of Investments [Line Items] | |
Equity in earnings of unconsolidated affiliates | $ 0.7 |
Pershing Road Development Company, LLC [Member] | |
Schedule of Investments [Line Items] | |
Equity in earnings of unconsolidated affiliates | 0.5 |
Broadway Square Partners, LLP [Member] | |
Schedule of Investments [Line Items] | |
Equity in earnings of unconsolidated affiliates | 0.3 |
Other Unconsolidated Affiliates [Member] | |
Schedule of Investments [Line Items] | |
Equity in earnings of unconsolidated affiliates | $ (1.5) |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Combinations [Abstract] | ||
Revenues | $ 1,145.8 | $ 1,153.7 |
Net income | $ 87.1 | $ 21.4 |
Goodwill - Summary of Change in
Goodwill - Summary of Change in Carrying Value of Goodwill (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 7,858 |
Adjustments to prior acquisitions | (2.3) |
Effect of foreign currency translation | 26.7 |
Ending balance | $ 7,882.4 |
Debt - Component of Debt (Detai
Debt - Component of Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Other indebtedness | $ 28.4 | $ 28.2 |
Unamortized original issue discount and debt issuance costs | (93.4) | (91.3) |
Debt | 8,116.1 | 8,256 |
Less current portion of long-term debt | 85.8 | 87.5 |
Long-term debt | 8,030.3 | 8,168.5 |
Secured Debt [Member] | Senior Secured Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | 6,161.1 | $ 8,319.1 |
Secured Debt [Member] | Senior Secured Credit Facilities Revolving Portion [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | 20 | |
Senior Notes [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | $ 2,000 |
Debt - Component of Debt (Paren
Debt - Component of Debt (Parenthetical) (Detail) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Secured Debt [Member] | Senior Secured Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Debt, weighted-average interest rate of credit facility | 4.75% | 4.77% |
Senior Notes [Member] | 5.875% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 5.50% | 5.50% |
Debt, due date | 2027 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Mar. 28, 2019 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||
Gain (loss) on extinguishment of debt | $ (7.1) | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of change in cash flows due to debt extinguishment obligation | 10.00% | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Capitalized financing costs, aggregate amount | $ 6.1 | |
Gain (loss) on extinguishment of debt | $ (7.1) | |
Senior Notes [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Debt principal amount | $ 2,000 | |
Debt, interest rate | 5.50% | |
Debt, due date | 2027 | |
Debt instrument, redemption of aggregate principal amount, percentage | 40.00% | |
Senior Notes [Member] | 5.5% Senior Notes due 2027 [Member] | On or Before March 30, 2022, Redemption May Up to 40% [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price equal to principal amount, percentage | 105.50% | |
Senior Notes [Member] | 5.5% Senior Notes due 2027 [Member] | Prior to March 30, 2022, Rdemption May Whole or in Part [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price equal to principal amount, percentage | 100.00% |
Debt - Schedule of Carrying Amo
Debt - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Amount [Member] | Senior Secured Credit Facilities [Member] | ||
Financial liabilities: | ||
Credit facility | $ 6,161.1 | $ 8,319.1 |
Carrying Amount [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Financial liabilities: | ||
Senior notes | 2,000 | |
Carrying Amount [Member] | Senior Secured Credit Facilities Revolving Portion [Member] | ||
Financial liabilities: | ||
Credit facility | 20 | |
Carrying Amount [Member] | Other Indebtedness [Member] | ||
Financial liabilities: | ||
Credit facility | 28.4 | 28.2 |
Fair Value [Member] | Senior Secured Credit Facilities [Member] | ||
Financial liabilities: | ||
Credit facility | 6,103.6 | 7,847.4 |
Fair Value [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Financial liabilities: | ||
Credit facility | 2,020 | |
Fair Value [Member] | Senior Secured Credit Facilities Revolving Portion [Member] | ||
Financial liabilities: | ||
Long-term debt gross | 19.7 | |
Fair Value [Member] | Other Indebtedness [Member] | ||
Financial liabilities: | ||
Credit facility | $ 28.6 | $ 28.3 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in stockholders' Equity (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Class Of Stock [Line Items] | ||
Beginning balance | $ 4,580 | $ 2,686.4 |
Beginning balance, shares | 252.4 | |
Net income | $ 80.8 | 51.3 |
Foreign currency exchange translation adjustment | 41.8 | 5.3 |
Stock-based compensation expense | 20.4 | 12.7 |
Exercise of options, net of withholding taxes | 35.6 | 27 |
Cumulative effect of accounting change | 47.9 | |
Cash dividends declared | (25.2) | (14.5) |
Other | 0.1 | (0.1) |
Ending balance | $ 4,733.5 | 2,816 |
Ending balance, shares | 254.4 | |
Common Stock [Member] | ||
Class Of Stock [Line Items] | ||
Beginning balance | $ 2.5 | $ 2.1 |
Beginning balance, shares | 252.4 | 208.1 |
Exercise of options, net of withholding taxes, shares | 2 | 1.3 |
Ending balance | $ 2.5 | $ 2.1 |
Ending balance, shares | 254.4 | 209.4 |
Additional Paid-in Capital [Member] | ||
Class Of Stock [Line Items] | ||
Beginning balance | $ 4,091.4 | $ 2,018.1 |
Stock-based compensation expense | 20.4 | 12.7 |
Exercise of options, net of withholding taxes | 35.6 | 27 |
Ending balance | 4,147.4 | 2,057.8 |
Retained Earnings [Member] | ||
Class Of Stock [Line Items] | ||
Beginning balance | 847.1 | 766.9 |
Net income | 80.8 | 51.3 |
Cumulative effect of accounting change | 47.9 | |
Cash dividends declared | (25.2) | (14.5) |
Other | 0.1 | (0.1) |
Ending balance | 902.8 | 851.5 |
Accumulated Other Comprehensive (Loss) Income [Member] | ||
Class Of Stock [Line Items] | ||
Beginning balance | (343) | (82.7) |
Foreign currency exchange translation adjustment | 41.8 | 5.3 |
Ending balance | (301.2) | (77.4) |
Treasury Stock [Member] | ||
Class Of Stock [Line Items] | ||
Beginning balance | (18) | (18) |
Ending balance | $ (18) | $ (18) |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Changes in stockholders' Equity (Parenthetical) (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Cash dividends declared per share | $ 0.10 | $ 0.07 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Loss Balances, Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | $ 4,580 | $ 2,686.4 |
Net current period other comprehensive income | 41.8 | 5.3 |
Ending balance | 4,733.5 | 2,816 |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (343) | |
Net current period other comprehensive income | 41.8 | |
Ending balance | (301.2) | |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (343) | (82.7) |
Net current period other comprehensive income | 41.8 | |
Ending balance | $ (301.2) | $ (77.4) |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Adjustments to Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Current period translation adjustments, Pretax | $ 42 | $ 5.3 |
Net cumulative translation adjustments, Pretax | 42 | 5.3 |
Total other comprehensive income (loss) | 42 | $ 5.3 |
Current period translation adjustments, Tax Effect | (0.2) | |
Net cumulative translation adjustments, Tax Effect | (0.2) | |
Total other comprehensive income (loss) | $ (0.2) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Class Of Stock [Line Items] | ||
Quarterly cash dividend paid | $ 0.10 | $ 0.07 |
Dividends paid on common stock | $ 25.2 | $ 14.5 |
First Quarter Dividend [Member] | ||
Class Of Stock [Line Items] | ||
Quarterly cash dividend paid | $ 0.10 | $ 0.07 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Deferred Revenue Arrangement [Line Items] | |||
Deferred revenue presented net within contract assets arising from contract | $ 37.5 | $ 32.4 | |
Deferred revenue recognized | 99.9 | $ 76.5 | |
Revenue expected to be recognized from remaining performance obligations | $ 345.4 | ||
Minimum [Member] | Software-enabled Services [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Revenue recognition period | 1 year | ||
Maximum [Member] | Software-enabled Services [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Revenue recognition period | 5 years |
Revenues - Additional Informa_2
Revenues - Additional Information (Details 1) $ in Millions | Mar. 31, 2019USD ($) |
Deferred Revenue Arrangement [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 345.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Deferred Revenue Arrangement [Line Items] | |
Revenue expected to be recognized from remaining performance obligations | $ 229.8 |
Revenue expected to be recognized from remaining performance obligations period | 12 months |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | $ 1,137.2 | $ 421.9 |
United States [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 828.3 | 302.7 |
United Kingdom [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 166.3 | 32 |
Asia-Pacific and Japan [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 51.6 | 29 |
Europe (excluding United Kingdom), Middle East and Africa [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 48.3 | 27.8 |
Canada [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 27.2 | 18.3 |
Americas, excluding United States and Canada [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | $ 15.5 | $ 12.1 |
Revenues - Disaggregation of _2
Revenues - Disaggregation of Revenues by Source (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | $ 1,137.2 | $ 421.9 |
Software-enabled Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 972 | 294.8 |
Maintenance and Term Licenses [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 130.1 | 107.7 |
Perpetual Licenses [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 15.1 | 4.4 |
Professional Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | $ 20 | $ 15 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 20.4 | $ 12.7 |
Cost of Software-Enabled Services [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 8.6 | 3.5 |
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 | 1.4 | 1.1 |
Total Cost of Revenues [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 10 | 4.6 |
Selling and Marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 3 | 2.7 |
Research and Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 2.6 | 2.1 |
General and Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 4.8 | 3.3 |
Total Operating Expenses [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 10.4 | $ 8.1 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Stock Option and Stock Appreciation Rights ("SARs") Activity (Detail) | 3 Months Ended |
Mar. 31, 2019shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Outstanding Opening | 39,800,000 |
Cancelled/forfeited | (300,000) |
Exercised | (2,000,000) |
Number of Shares, Outstanding Closing | 37,500,000 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Restricted Stock Unit ("RSUs") Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding Opening | 1,400,000 |
Vested | (300,000) |
Number of Shares, Outstanding Closing | 1,100,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 16.50% | 17.20% |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 80.8 | $ 51.3 |
Shares: | ||
Weighted average common shares outstanding — used in calculation of basic EPS | 251.5 | 207 |
Weighted average common stock equivalents — options and restricted shares | 12.2 | 10.7 |
Weighted average common and common equivalent shares outstanding — used in calculation of diluted EPS | 263.7 | 217.7 |
Earnings per share - Basic | $ 0.32 | $ 0.25 |
Earnings per share - Diluted | $ 0.31 | $ 0.24 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock options and SARs [Member] | ||
Earnings Per Share [Line Items] | ||
Options to purchase shares outstanding | 5.7 | 0.2 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] $ in Millions | Apr. 29, 2019USD ($) |
Subsequent Event [Line Items] | |
Gain contingency description | On April 29, 2019, we announced that a Cook County Illinois jury found Clearwater Analytics liable for willfully and maliciously stealing our trade secrets and we were awarded approximately $44.0 million in damages, $28 million of which were punitive. The judgement remains subject to post-trial motions and appeal. |
Gain contingency awarded from other party | $ 44 |
Punitive [Member] | |
Subsequent Event [Line Items] | |
Gain contingency awarded from other party | $ 28 |