Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SS&C TECHNOLOGIES HOLDINGS, INC. | |
Entity Central Index Key | 0001402436 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 256,242,800 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-34675 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 71-0987913 | |
Entity Address, Address Line One | 80 Lamberton Road | |
Entity Address, City or Town | Windsor | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06095 | |
City Area Code | 860 | |
Local Phone Number | 298-4500 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Security12b Title | Common stock, par value $0.01 per share | |
Trading Symbol | SSNC | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 373.7 | $ 152.8 |
Funds receivable and funds held on behalf of clients | 1,073.1 | 1,729.9 |
Accounts receivable, net of allowance for doubtful accounts of $14.6 and $13.2, respectively | 686.6 | 669.7 |
Contract asset | 27.7 | 20 |
Prepaid expenses and other current assets | 167.3 | 204.5 |
Restricted cash and cash equivalents | 8.3 | 9 |
Total current assets | 2,336.7 | 2,785.9 |
Property, plant and equipment, net (Note 2) | 436.4 | 466.4 |
Operating lease right-of-use assets | 358 | 375.3 |
Investments (Note 3) | 175.5 | 160.1 |
Unconsolidated affiliates (Note 4) | 228.2 | 234.8 |
Contract asset | 78.6 | 78.6 |
Goodwill (Note 6) | 7,859.7 | 7,959.9 |
Intangible and other assets, net of accumulated amortization of $2,159.9 and $2,022.0, respectively | 4,501 | 4,680.1 |
Total assets | 15,974.1 | 16,741.1 |
Current liabilities: | ||
Current portion of long-term debt (Note 7) | 320 | 76.3 |
Client funds obligations | 1,073.1 | 1,729.9 |
Accounts payable | 42.8 | 36.9 |
Income taxes payable | 7.9 | 13.3 |
Accrued employee compensation and benefits | 163.4 | 290.6 |
Interest payable | 0.2 | 27.6 |
Other accrued expenses | 253.9 | 268.4 |
Deferred revenue | 348 | 333.2 |
Total current liabilities | 2,209.3 | 2,776.2 |
Long-term debt, net of current portion (Note 7) | 6,986.3 | 7,077.8 |
Operating lease liabilities | 331.8 | 348.6 |
Other long-term liabilities | 317.9 | 333.7 |
Deferred income taxes | 1,041.2 | 1,088.7 |
Total liabilities | 10,886.5 | 11,625 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity (Note 8): | ||
Preferred stock, $0.01 par value per share, 5.0 million shares authorized; no shares issued | ||
Common stock | 2.6 | 2.6 |
Additional paid-in capital | 4,324.3 | 4,266.9 |
Accumulated other comprehensive loss | (406.1) | (253) |
Retained earnings | 1,245.1 | 1,177.9 |
Stockholders' equity before treasury stock | 5,165.9 | 5,194.4 |
Less: cost of common stock in treasury, 2.9 million shares | (78.3) | (78.3) |
Total stockholders’ equity | 5,087.6 | 5,116.1 |
Total liabilities and stockholders’ equity | 15,974.1 | 16,741.1 |
Class A Non-Voting Common Stock [Member] | ||
Stockholders’ equity (Note 8): | ||
Common stock |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for doubtful accounts receivable | $ 14.6 | $ 13.2 |
Accumulated amortization of finite-lived intangible assets | $ 2,159.9 | $ 2,022 |
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 | 259,000,000 | 257,600,000 |
Common stock, shares outstanding | 256,100,000 | 254,600,000 |
Treasury stock, shares | 2,900,000 | 2,900,000 |
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 (Loss) Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Total revenues | $ 1,173.6 | $ 1,137.2 |
Cost of revenues: | ||
Total cost of revenues | 665.6 | 661.9 |
Gross profit | 508 | 475.3 |
Operating expenses: | ||
Selling and marketing | 91.4 | 87 |
Research and development | 104.9 | 94.8 |
General and administrative | 92.9 | 91.5 |
Total operating expenses | 289.2 | 273.3 |
Operating income | 218.8 | 202 |
Interest expense, net | (77.4) | (101.6) |
Other (expense) income, net | (15.3) | 3.5 |
Equity in earnings of unconsolidated affiliates, net | 0.7 | |
Loss on extinguishment of debt | (2.8) | (7.1) |
Income before income taxes | 124 | 96.8 |
Provision for income taxes | 24.8 | 16 |
Net income | $ 99.2 | $ 80.8 |
Basic earnings per share | $ 0.39 | $ 0.32 |
Diluted earnings per share | $ 0.37 | $ 0.31 |
Basic weighted average number of common shares outstanding | 255.3 | 251.5 |
Diluted weighted average number of common and common equivalent shares outstanding | 265.6 | 263.7 |
Net income | $ 99.2 | $ 80.8 |
Other comprehensive (loss) income, net of tax: | ||
Change in unrealized loss on interest rate swaps | (2.4) | |
Foreign currency exchange translation adjustment | (150.7) | 41.8 |
Total other comprehensive (loss) income, net of tax | (153.1) | 41.8 |
Comprehensive (loss) income | (53.9) | 122.6 |
Software-enabled Services [Member] | ||
Revenues: | ||
Total revenues | 989.5 | 972 |
Cost of revenues: | ||
Total cost of revenues | 583.5 | 586.9 |
License, Maintenance and Related [Member] | ||
Revenues: | ||
Total revenues | 184.1 | 165.2 |
Cost of revenues: | ||
Total cost of revenues | $ 82.1 | $ 75 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Cash flow from operating activities: | |||
Net income | $ 99.2 | $ 80.8 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 184.7 | 202.8 | |
Equity in earnings of unconsolidated affiliates, net | (0.7) | ||
Cash distributions received from unconsolidated affiliates | 2 | 0.1 | |
Stock-based compensation expense | 22.5 | 20.4 | |
Net losses (gains) on investments | 11.3 | (7.7) | |
Amortization and write-offs of loan origination costs and original issue discounts | 3.5 | 4.3 | |
Loss on extinguishment of debt | 0.4 | ||
Loss on sale or disposition of property and equipment | 3.7 | 2.5 | |
Deferred income taxes | (32.3) | (29.6) | |
Provision for doubtful accounts | 2.3 | 0.6 | |
Changes in operating assets and liabilities, excluding effects from acquisitions: | |||
Accounts receivable | (27.2) | (2.9) | |
Prepaid expenses and other assets | 13.2 | 21.9 | |
Contract assets | (10.5) | 4.2 | |
Accounts payable | 6.4 | 3.6 | |
Accrued expenses and other liabilities | (171) | (161.8) | |
Income taxes prepaid and payable | 38.1 | (16.6) | |
Deferred revenue | 2.1 | 14.8 | |
Net cash provided by operating activities | 147.7 | 137.4 | |
Cash flow from investing activities: | |||
Cash paid for business acquisitions, net of cash acquired | (16.3) | 3.2 | |
Additions to property and equipment | (8.5) | (16.3) | |
Additions to capitalized software | (18) | (16.4) | |
Investments in securities | (40) | ||
Proceeds from sales / maturities of investments | 6.9 | 10.8 | |
Collection of other non-current receivables | 2.6 | 2.6 | |
Net cash used in investing activities | (73.3) | (16.1) | |
Cash flow from financing activities: | |||
Cash received from debt borrowings | 246 | 2,140 | |
Repayments of debt | (95.9) | (2,278.4) | |
Fees paid for debt extinguishment and refinancing activities | (4.6) | ||
Net decrease in client funds obligations | (670.7) | (79.3) | |
Proceeds from exercise of stock options | 38.1 | 45.1 | |
Withholding taxes paid related to equity award net share settlement | (3.3) | (9.5) | |
Dividends paid on common stock | (31.9) | (25.2) | $ (25.2) |
Net cash used in financing activities | (517.7) | (211.9) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7.1) | 0.7 | |
Net decrease in cash, cash equivalents and restricted cash | (450.4) | (89.9) | |
Cash, cash equivalents and restricted cash, beginning of period | 1,789.4 | 1,113.3 | 1,113.3 |
Cash, cash equivalents and restricted cash and cash equivalents, end of period | 1,339 | 1,023.4 | 1,789.4 |
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents: | |||
Cash and cash equivalents | 373.7 | 154.6 | 152.8 |
Restricted cash and cash equivalents | 8.3 | 5.6 | $ 9 |
Funds receivable and funds held on behalf of clients | 957 | 863.2 | |
Cash and cash equivalents and restricted cash | $ 1,339 | $ 1,023.4 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Stock [Member] |
Beginning balance at Dec. 31, 2018 | $ 4,580 | $ 2.5 | $ 4,091.4 | $ 847.1 | $ (343) | $ (18) |
Beginning balance, shares at Dec. 31, 2018 | 252.4 | |||||
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 | 35.6 | 35.6 | ||||
Exercise of options, net of withholding taxes, shares | 2 | |||||
Cash dividends declared | (25.2) | (25.2) | ||||
Other | 0.1 | 0.1 | ||||
Ending balance at Mar. 31, 2019 | 4,733.5 | $ 2.5 | 4,147.4 | 902.8 | (301.2) | (18) |
Ending balance, shares at Mar. 31, 2019 | 254.4 | |||||
Beginning balance at Dec. 31, 2019 | $ 5,116.1 | $ 2.6 | 4,266.9 | 1,177.9 | (253) | (78.3) |
Beginning balance, shares at Dec. 31, 2019 | 257.6 | 257.6 | ||||
Net income | $ 99.2 | 99.2 | ||||
Foreign exchange translation adjustment | (150.7) | (150.7) | ||||
Net change in interest rate swaps | (2.4) | (2.4) | ||||
Stock-based compensation expense | 22.5 | 22.5 | ||||
Exercise of options, net of withholding taxes | 34.8 | 34.8 | ||||
Exercise of options, net of withholding taxes, shares | 1.4 | |||||
Cash dividends declared | (31.9) | 0.1 | (32) | |||
Ending balance at Mar. 31, 2020 | $ 5,087.6 | $ 2.6 | $ 4,324.3 | $ 1,245.1 | $ (406.1) | $ (78.3) |
Ending balance, shares at Mar. 31, 2020 | 259 | 259 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividends declared per share | $ 0.125 | $ 0.10 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2020 (the “2019 Form 10-K”). The inputs into our judgments and estimates consider the economic implications of COVID-19 on our critical and significant accounting estimates. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments (consisting of only normal recurring adjustments, except as noted elsewhere in the notes to the Condensed Consolidated Financial Statements) necessary for a fair statement of our financial position as of March 31, 2020, the results of our operations for the three months ended March 31, 2020 and 2019, and our cash flows for the three months ended March 31, 2020 and 2019. 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, 2019, which were included in the 2019 Form 10-K. The December 31, 2019 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, 2020 are not necessarily indicative of the expected results for any subsequent quarters or the full year. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments Recent Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2020 | |
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, December 31, 2020 2019 Land $ 46.5 $ 47.5 Building and improvements 295.1 302.2 Equipment, furniture, and fixtures 423.0 427.1 764.6 776.8 Less: accumulated depreciation and amortization (328.2 ) (310.4 ) Total property, plant and equipment, net $ 436.4 $ 466.4 Depreciation expense for the three months ended March 31, 2020 and 2019 was $27.1 million and $32.0 million, respectively. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 3—Investments Investments are as follows (in millions): March 31, December 31, 2020 2019 Partnership interests in private equity funds $ 61.2 $ 76.7 Marketable equity securities 29.8 37.9 Non-marketable equity securities 84.5 45.5 Total investments $ 175.5 $ 160.1 Realized and unrealized gains and losses for our equity securities are as follows (in millions): Three Months Ended March 31, 2020 2019 Unrealized (losses) gains on equity securities held as of the end of the period $ (11.1 ) $ 7.3 Realized gains (losses) for equity securities sold during the period 1.4 (0.2 ) Total (losses) gains recognized in other (expense) income, net $ (9.7 ) $ 7.1 Preferred Stock Investment On February 27, 2020, we entered into a Series A Convertible Share Purchase Agreement with SILAC, Inc. (“SILAC”), pursuant to which we acquired 40 million shares of Series A convertible preferred stock of SILAC for a purchase price of $40.0 million. Mr. William C. Stone, our Chairman of the Board of Directors and Chief Executive Officer, has an economic interest in SILAC and is a member of its board of directors. Accordingly, the transaction constitutes a “related person transaction” under our related person transaction policy. Our audit committee and the independent members of our Board of Directors authorized and approved the transaction. Mr. Stone did not participate in the Board of Directors’ consideration of the transaction. The investment is classified as a non-marketable equity security. 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, 2020 and December 31, 2019, we held certain investment assets and certain liabilities that are required to be measured at fair value on a recurring basis. These investments include money market funds and marketable equity securities where fair value is determined using quoted prices in active markets. Accordingly, the fair value measurements of these investments have been classified as Level 1 in the tables below. Investments for which we elected net asset value as a practical expedient for fair value and investments measured using the fair value measurement alternative are excluded from the tables below. Fair value for deferred compensation liabilities that are credited with deemed gains or losses of the underlying hypothetical investments, primarily equity securities, have been classified as Level 1 in the tables below. The following tables present assets and liabilities measured at fair value on a recurring basis (in millions): Fair Value Measurements at Reporting Date Using March 31, 2020 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) $ 658.0 $ 658.0 $ — $ — Marketable equity securities (2) 29.8 29.8 — — Deferred compensation liabilities (3) (14.1 ) (14.1 ) — — Total $ 673.7 $ 673.7 $ — $ — _____________________________________________________ (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, 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) $ 1,051.1 $ 1,051.1 $ — $ — Marketable equity securities (2) 37.9 37.9 — — Deferred compensation liabilities (3) (20.8 ) (20.8 ) — — Total $ 1,068.2 $ 1,068.2 $ — $ — _____________________________________________________ (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. During the three months ended March 31, 2020, the fair value of our non-marketable equity securities was adjusted downward by $1.0 million. 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 $61.2 million and $76.7 million at March 31, 2020 and December 31, 2019, respectively, of which $57.1 million and $72.1 million, respectively, were measured using net asset value as a practical expedient for fair value and $4.1 million and $4.6 million, respectively, were accounted for under the equity method of accounting. The investments in private equity funds represent underlying investments in domestic and international markets across various industry sectors. At March 31, 2020 and December 31, 2019, one of our investments in private equity funds, representing 74% and 75%, respectively, of the total value of the private equity fund investments, was 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 2020 with an optional one-year 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, 2020, 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, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Unconsolidated Affiliates | Note 4—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, 2020 March 31, 2020 International Financial Data Services L.P. 50% $ 95.9 $ 44.1 Pershing Road Development Company, LLC 50% 72.5 74.6 Broadway Square Partners, LLP 50% 51.2 29.8 Other unconsolidated affiliates 8.6 — Total $ 228.2 $ 148.5 Investments in unconsolidated affiliates are accounted for under the equity method of accounting. We record our proportionate share of the results of the unconsolidated affiliates and amortization expense related to basis differences in Equity in earnings of unconsolidated affiliates, net on the Condensed Consolidated Statement of Comprehensive (Loss) Income. One of the unconsolidated affiliates is a party to an interest rate swap agreement. We record our proportionate share of the change in value of the interest rate swap agreement in A ccumulated other comprehensive (loss) income. Amounts reclassified from A ccumulated other comprehensive (loss) income to N et income are recorded in E quity in earnings of unconsolidated affiliates, net on the Condensed Consolidated Statement of Comprehensive (Loss) Income . Equity in earnings of unconsolidated affiliates are as follows (in millions): Three Months Ended March 31, 2020 2019 International Financial Data Services L.P. $ 0.7 $ 0.7 Pershing Road Development Company, LLC 0.7 0.5 Broadway Square Partners, LLP 0.3 0.3 Other unconsolidated affiliates (1.0 ) (1.5 ) Total $ 0.7 $ — |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 5—Acquisitions Captricity On March 24, 2020, we purchased all of the outstanding stock of Captricity, Inc. (“Captricity”) for approximately $15.3 million in cash, net of cash acquired, plus the costs of effecting the transaction and the assumption of certain liabilities. Captricity’s data transformation platform, Vidado, provides an enterprise-grade cloud-based machine learning solution that enables fast, scalable and highly accurate extraction of handwritten and machine-printed data from paper documents. The net assets and results of operations of Captricity have been included in our Condensed Consolidated Financial Statements from March 24, 2020. The fair value of intangible assets, consisting of customer relationships and completed technology, was determined using the income approach. Specifically, the relief-from-royalty method was utilized for the completed technology and 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 completed technology and the customer relationships are expected to be amortized over approximately seven and 15 years, respectively, in each case the estimated lives of the assets. The fair value of deferred revenue was determined using the market approach. The remainder of the purchase price was allocated to goodwill and is not tax deductible. There are $0.1 million in revenues from Captricity’s operations included in the Condensed Consolidated Statements of Comprehensive (Loss) Income for the three months ended March 31, 2020. The following summarizes the preliminary allocation of the purchase price for the 2020 acquisition of Captricity. The assets and liabilities pending finalization include the valuation of acquired tangible and intangible assets and the evaluation of taxes (in millions): Captricity Accounts receivable $ 0.3 Other assets 3.1 Acquired client relationships and contracts 4.3 Completed technology 2.9 Goodwill 8.3 Accounts payable (0.4 ) Accrued employee compensation and benefits (0.3 ) Deferred revenue (2.1 ) Other liabilities assumed (0.8 ) Consideration paid, net of cash acquired $ 15.3 We recorded severance expense related to reductions in headcount in connection with the integration efforts associated with the acquisitions of DST, Eze and Intralinks. The amount of severance expense recognized in our Condensed Consolidated Statements of Comprehensive (Loss) Income for the three months ended March 31, 2020 and 2019 was as follows (in millions): Three Months Ended March 31, Consolidated Statements of Comprehensive (Loss) Income Classification 2020 2019 Cost of software-enabled services $ 21.7 $ 0.6 Cost of license, maintenance and other related 1.2 - Total cost of revenues 22.9 0.6 Selling and marketing 1.1 2.7 Research and development 5.1 0.9 General and administrative 2.3 0.7 Total operating expenses 8.5 4.3 Total severance expense $ 31.4 $ 4.9 The following unaudited pro forma information is provided for illustrative purposes only and assumes that the acquisition of Captricity occurred on January 1, 2019 and the acquisitions of Algorithmics and Investrack occurred on January 1, 2018, 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 those dates, nor of the results that may be obtained in the future. Three Months Ended March 31, 2020 2019 Revenues $ 1,177.3 $ 1,166.5 Net income $ 100.4 $ 84.7 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 6—Goodwill The change in carrying value of goodwill as of and for the three months ended March 31, 2020 is as follows (in millions): Balance at December 31, 2019 $ 7,959.9 2020 acquisitions 8.3 Adjustments to prior acquisitions (2.9 ) Effect of foreign currency translation (105.6 ) Balance at March 31, 2020 $ 7,859.7 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 7—Debt At March 31, 2020 and December 31, 2019, debt consisted of the following (in millions): March 31, December 31, 2020 2019 Senior secured credit facilities, weighted-average interest rate of 2.74% and 4.05%, respectively $ 5,103.0 $ 5,198.7 5.5% senior notes due 2027 2,000.0 2,000.0 Senior secured credit facilities revolving portion, weighted average interest rate of 2.96% 246.0 — Other indebtedness 24.0 25.6 Unamortized original issue discount and debt issuance costs (66.7 ) (70.2 ) 7,306.3 7,154.1 Less: current portion of long-term debt 320.0 76.3 Long-term debt $ 6,986.3 $ 7,077.8 On January 31, 2020, we entered into an amendment (the “Amendment”) to our senior secured credit agreement dated April 16, 2018. Pursuant to the Amendment, the interest rate margin applicable to Term Loan B was reduced from LIBOR plus 2.25% to LIBOR plus 1.75%. No changes were made to the financial covenants, outstanding principal amounts or the scheduled amortization. The Amendment was evaluated in accordance with FASB Accounting Standards Codification 470-50, Debt-Modifications and Extinguishments , for debt modification and extinguishment accounting. We accounted for the debt re-pricing as a debt modification with respect to amounts that remained obligations of the same lender in the syndicate with minor changes in cash flows and as a debt extinguishment with respect to amounts that were obligations of lenders that exited the syndicate or remained in the syndicate but experienced a change in cash flows of greater than 10 %. We recorded a $2.8 million loss on extinguishment of debt in the three months ended March 31, 2020 in connection with the Amendment. The loss on extinguishment of debt includes the write-off of a portion of the unamortized capitalized financing fees related to our senior secured credit agreement for amounts accounted for as a debt extinguishment, as well as new financing fees for amounts accounted for as a debt modification . On March 24, 2020, we borrowed $211.0 million under our Revolving Credit Facility as a precautionary measure to increase liquidity and preserve financial flexibility in light of current uncertainty resulting from the COVID-19 pandemic. We borrowed $35.0 million under the Revolving Credit Facility earlier in March for normal seasonal cash flow needs. As a result of these borrowings and previously outstanding letters of credit, we do not currently have any further availability under our Revolving Credit Facility. Fair Value of Debt The carrying amounts and fair values of financial instruments are as follows (in millions): March 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value Financial liabilities: Senior secured credit facilities $ 5,103.0 $ 4,759.7 $ 5,198.7 $ 5,231.7 5.5% senior notes due 2027 2,000.0 2,062.5 2,000.0 2,135.0 Senior secured credit facilities, revolving portion 246.0 221.7 — — Other indebtedness 24.0 24.2 25.6 25.9 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, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8—Stockholders’ Equity Dividends We paid a quarterly cash dividend of $0.125 per share of common stock in March of 2020 totaling $31.9 million in the aggregate. We paid a quarterly cash dividend of $0.10 per share of common stock in March of 2019 totaling $25.2 million in the aggregate. Accumulated O Accumulated other comprehensive loss balances, net of tax consist of the following (in millions): Interest Rate Swap Foreign Currency Translation Accumulated Other Comprehensive Loss Balance, December 31, 2019 $ (2.8 ) $ (250.2 ) $ (253.0 ) Net current period other comprehensive loss (2.4 ) (150.7 ) (153.1 ) Balance, March 31, 2020 $ (5.2 ) $ (400.9 ) $ (406.1 ) Adjustments to accumulated other comprehensive loss are as follows (in millions): Three Months Ended March 31, 2020 2019 Pretax Tax Effect Pretax Tax Effect Interest Rate Swap Unrealized losses on interest rate swaps $ (1.5 ) $ 0.8 $ — $ — Reclassification of losses into net earnings on interest rate swaps (1.7 ) — — — Net change in cash flow hedges (3.2 ) 0.8 — — Foreign Currency Translation Current period translation adjustments (151.5 ) 0.8 42.0 (0.2 ) Net cumulative translation adjustments (151.5 ) 0.8 42.0 (0.2 ) Total other comprehensive (loss) income $ (154.7 ) $ 1.6 $ 42.0 $ (0.2 ) |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | Note 9—Revenues We generate revenues primarily through our software-enabled services. Our software-enabled services are generally provided under contracts with initial terms of one to five years that require monthly or quarterly payments and are subject to automatic annual renewal at the end of the initial term unless terminated by either party. We also generate revenues by licensing our software to clients through either perpetual or term licenses and by selling maintenance services. We classify license revenues related to sales-based royalty arrangements as term license revenue. Maintenance services are generally provided under annually renewable contracts. Our pricing typically scales as a function of our clients’ assets under management, the complexity of asset classes managed, the volume of transactions, and the level of service the client requires. Revenues from professional services consist mostly of services provided on a time and materials basis. Deferred revenues primarily represent unrecognized fees billed or collected for maintenance and professional services. Deferred revenues are recognized as (or when) we perform under the contract. Deferred revenues are recorded on a net basis with contract assets at the contract level. Accordingly, as of March 31, 2020 and December 31, 2019, approximately $44.6 million and $51.8 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 $108.0 million and $99.9 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, revenue of approximately $623.0 million is expected to be recognized from remaining performance obligations for license, maintenance and related revenues, of which $343.0 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, 2020 2019 United States $ 862.0 $ 828.3 United Kingdom 156.2 166.3 Europe (excluding United Kingdom), Middle East and Africa 63.0 48.3 Asia-Pacific and Japan 45.4 51.6 Canada 28.6 27.2 Americas, excluding United States and Canada 18.4 15.5 Total $ 1,173.6 $ 1,137.2 The following table disaggregates our revenues by source (in millions): Three Months Ended March 31, 2020 2019 Software-enabled services $ 989.5 $ 972.0 Maintenance and term licenses 159.8 130.1 Professional services 20.0 20.0 Perpetual licenses 4.3 15.1 Total $ 1,173.6 $ 1,137.2 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stock Based Compensation | Note 10—Stock Based Compensation S tock options, SARs, RSUs and RSAs The amount of stock-based compensation expense recognized in our Condensed Consolidated Statements of Comprehensive (Loss) Income for the three months ended March 31, 2020 and 2019 was as follows (in millions): Three Months Ended March 31, Condensed Consolidated Statements of Comprehensive (Loss) Income Classification 2020 2019 Cost of software-enabled services $ 9.1 $ 8.6 Cost of license, maintenance and other related 1.3 1.4 Total cost of revenues 10.4 10.0 Selling and marketing 3.5 3.0 Research and development 2.9 2.6 General and administrative 5.7 4.8 Total operating expenses 12.1 10.4 Total stock-based compensation expense $ 22.5 $ 20.4 The following table summarizes stock option and stock appreciation rights (“SARs”) activity as well as restricted stock unit (“RSUs”) activity for the three months ended March 31, 2020 (shares in millions): Stock Options and SARs RSUs Shares Shares Outstanding at December 31, 2019 42.1 0.5 Granted 0.1 — Cancelled/forfeited (0.6 ) — Vested — (0.2 ) Exercised (1.3 ) — Outstanding at March 31, 2020 40.3 0.3 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11—Income Taxes The effective tax rate was 20.0% and 16.5% for the three months ended March 31, 2020 and 2019, respectively. The change in the effective tax rate for the three months ended March 31, 2020 compared to the respective prior year period was primarily due to the decrease in 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. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the United States. We evaluated the provisions of the CARES Act as of March 31, 2020, with no material effect on income taxes in the financial statements. Certain tax provisions of the CARES Act may result in immaterial cash tax benefits. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 12—Earnings per Share The following table sets forth the computation of basic and diluted EPS (in millions, except per share amounts): Three Months Ended March 31, 2020 2019 Net income $ 99.2 $ 80.8 Shares: Weighted average common shares outstanding — used in calculation of basic EPS 255.3 251.5 Weighted average common stock equivalents — stock options and restricted shares 10.3 12.2 Weighted average common and common equivalent shares outstanding — used in calculation of diluted EPS 265.6 263.7 Earnings per share - Basic $ 0.39 $ 0.32 Earnings per share - Diluted $ 0.37 $ 0.31 Stock options and SARs representing 12.2 and 5.7 million shares were outstanding for the three months ended March 31, 2020 and 2019, 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, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13—Commitments and Contingencies From time to time, we are subject to legal proceedings and claims. In our opinion, we are not involved in any litigation or proceedings that would have a material adverse effect on us or our business. Legal Proceedings A putative representative 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 (“ERISA”). On September 1, 2017, a complaint was filed purportedly on behalf of the Plan in the United States District Court for the Southern District of New York, captioned Ferguson, et al v. Ruane Cunniff & Goldfarb Inc., et al., naming as defendants DST, the Compensation Committee of DST’s Board of Directors, the Advisory Committee of the Plan and certain of DST’s present and/or former officers and directors (collectively the “DST Defendants”). On September 18, 2019, the United States District Court for the Southern District of New York granted a partial dismissal related to certain claims against the DST Defendants concerning the 401k portion of the Plan. On October 31, 2019, the DST Defendants filed an answer to the amended complaint and asserted crossclaims for contribution and/or indemnification against Ruane, Cunniff & Goldfarb Inc. (“Ruane”). On January 9, 2020, Ruane filed an amended answer to the amended complaint asserting crossclaims for contribution and/or indemnification against DST. Both DST and Ruane have filed answers denying the crossclaims asserted against them. On September 28, 2018, a complaint was filed in the United States District Court for the Southern District of New York captioned Robert Canfield, et al. v. SS&C Technologies Holdings, Inc., et al., on behalf of five individual plaintiffs. On November 5, 2018, a similar complaint was filed in the United States District Court for the Southern District of New York captioned Mark Mendon, et al. v. SS&C Technologies Holdings, Inc., et al., on behalf of two individual plaintiffs. These complaints name as defendants SS&C, DST, the Advisory Committee of the Plan, the Compensation Committee of DST’s Board of Directors and Ruane. The underlying claim in each complaint is the same as in the above-described Ferguson matter, with the exception that these are individual actions and not putative class actions. On February 18, 2020, the DST Defendants moved to disqualify plaintiffs’ counsel in these actions and in nearly all of the arbitrations described below. Those motions were fully briefed on March 24, 2020 and remain pending. DST, the Advisory Committee of the Plan, and the Compensation Committee of DST’s Board of Directors have been named in 430 substantially similar individual demands for arbitration through March 29, 2020, 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 March 31, 2020, the parties have jointly submitted 392 of the demands for arbitration to the American Arbitration Association. The remaining demands for arbitration have not yet been submitted. On October 8, 2019, a substantially similar action to the above-described Ferguson, Canfield, Mendon and arbitration matters captioned Scalia v. Ruane, Cunniff & Goldfarb Inc. was filed by the U.S. Department of Labor (“DOL”) in the United States District Court for the Southern District of New York naming as defendants DST, the Advisory Committee of the Plan, the Compensation Committee of DST’s Board of Directors and certain of DST’s former officers and directors (“DST DOL Defendants”), and alleging that the DST DOL Defendants breached fiduciary duties in violation of ERISA in connection with the Plan. The complaint also names as defendants Ruane and its former Chairman and Chief Executive Officer Robert D. Goldfarb. In the complaint, the DOL seeks disgorgement, damages and any other appropriate injunctive or equitable relief . On December 10, 2019, Ruane filed a complaint in the United States District Court for the Southern District of New York captioned Ruane, Cunniff & Goldfarb Inc. v. Percy Payne, et al. against the former and current DST employees who brought arbitration claims against Ruane and the DST Defendants. Ruane named DST and others as nominal defendants. The complaint seeks a declaratory judgment that multiple Plan participants and representatives cannot pursue duplicative actions seeking the same or similar relief. On December 18, 2019, Ruane filed a motion seeking a preliminary injunction prohibiting the arbitrations from proceeding until a determination by the Court as to which action or actions should proceed. That motion remains pending. We continue to vigorously defend these matters. We have not yet determined what effect these matters will have, if any, on our financial position or results of operations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14—Subsequent Event On April 30, 2020, we entered into a definitive agreement to acquire Innovest Systems for total consideration of $120.0 million. Innovest builds systems for trust accounting, payments and unique asset servicing on modern, web-based technology. The purchase price will consist of $100.0 million in cash, subject to certain adjustments, and $20.0 million in common stock, with the value of the common stock portion based on the trading price between April 20, 2020 and the date of the closing. The transaction is expected to close in the second quarter of 2020. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments |
Recent Accounting Pronouncements Not Yet Effective | Recent Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, December 31, 2020 2019 Land $ 46.5 $ 47.5 Building and improvements 295.1 302.2 Equipment, furniture, and fixtures 423.0 427.1 764.6 776.8 Less: accumulated depreciation and amortization (328.2 ) (310.4 ) Total property, plant and equipment, net $ 436.4 $ 466.4 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Investments | Investments are as follows (in millions): March 31, December 31, 2020 2019 Partnership interests in private equity funds $ 61.2 $ 76.7 Marketable equity securities 29.8 37.9 Non-marketable equity securities 84.5 45.5 Total investments $ 175.5 $ 160.1 |
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, 2020 2019 Unrealized (losses) gains on equity securities held as of the end of the period $ (11.1 ) $ 7.3 Realized gains (losses) for equity securities sold during the period 1.4 (0.2 ) Total (losses) gains recognized in other (expense) income, net $ (9.7 ) $ 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, 2020 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) $ 658.0 $ 658.0 $ — $ — Marketable equity securities (2) 29.8 29.8 — — Deferred compensation liabilities (3) (14.1 ) (14.1 ) — — Total $ 673.7 $ 673.7 $ — $ — _____________________________________________________ (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, 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) $ 1,051.1 $ 1,051.1 $ — $ — Marketable equity securities (2) 37.9 37.9 — — Deferred compensation liabilities (3) (20.8 ) (20.8 ) — — Total $ 1,068.2 $ 1,068.2 $ — $ — _____________________________________________________ (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. |
Unconsolidated Affiliates (Tabl
Unconsolidated Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 March 31, 2020 International Financial Data Services L.P. 50% $ 95.9 $ 44.1 Pershing Road Development Company, LLC 50% 72.5 74.6 Broadway Square Partners, LLP 50% 51.2 29.8 Other unconsolidated affiliates 8.6 — Total $ 228.2 $ 148.5 |
Schedule of Equity in Earnings of Unconsolidated Affiliates | Equity in earnings of unconsolidated affiliates are as follows (in millions): Three Months Ended March 31, 2020 2019 International Financial Data Services L.P. $ 0.7 $ 0.7 Pershing Road Development Company, LLC 0.7 0.5 Broadway Square Partners, LLP 0.3 0.3 Other unconsolidated affiliates (1.0 ) (1.5 ) Total $ 0.7 $ — |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 2020 acquisition of Captricity. The assets and liabilities pending finalization include the valuation of acquired tangible and intangible assets and the evaluation of taxes (in millions): Captricity Accounts receivable $ 0.3 Other assets 3.1 Acquired client relationships and contracts 4.3 Completed technology 2.9 Goodwill 8.3 Accounts payable (0.4 ) Accrued employee compensation and benefits (0.3 ) Deferred revenue (2.1 ) Other liabilities assumed (0.8 ) Consideration paid, net of cash acquired $ 15.3 |
Schedule of Severance Expense Recognized | The amount of severance expense recognized in our Condensed Consolidated Statements of Comprehensive (Loss) Income for the three months ended March 31, 2020 and 2019 was as follows (in millions): Three Months Ended March 31, Consolidated Statements of Comprehensive (Loss) Income Classification 2020 2019 Cost of software-enabled services $ 21.7 $ 0.6 Cost of license, maintenance and other related 1.2 - Total cost of revenues 22.9 0.6 Selling and marketing 1.1 2.7 Research and development 5.1 0.9 General and administrative 2.3 0.7 Total operating expenses 8.5 4.3 Total severance expense $ 31.4 $ 4.9 |
Summary of Unaudited Pro Forma Information | The following unaudited pro forma information is provided for illustrative purposes only and assumes that the acquisition of Captricity occurred on January 1, 2019 and the acquisitions of Algorithmics and Investrack occurred on January 1, 2018, 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 those dates, nor of the results that may be obtained in the future. Three Months Ended March 31, 2020 2019 Revenues $ 1,177.3 $ 1,166.5 Net income $ 100.4 $ 84.7 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 is as follows (in millions): Balance at December 31, 2019 $ 7,959.9 2020 acquisitions 8.3 Adjustments to prior acquisitions (2.9 ) Effect of foreign currency translation (105.6 ) Balance at March 31, 2020 $ 7,859.7 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Component of Debt | At March 31, 2020 and December 31, 2019, debt consisted of the following (in millions): March 31, December 31, 2020 2019 Senior secured credit facilities, weighted-average interest rate of 2.74% and 4.05%, respectively $ 5,103.0 $ 5,198.7 5.5% senior notes due 2027 2,000.0 2,000.0 Senior secured credit facilities revolving portion, weighted average interest rate of 2.96% 246.0 — Other indebtedness 24.0 25.6 Unamortized original issue discount and debt issuance costs (66.7 ) (70.2 ) 7,306.3 7,154.1 Less: current portion of long-term debt 320.0 76.3 Long-term debt $ 6,986.3 $ 7,077.8 |
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, 2020 December 31, 2019 Carrying Fair Carrying Fair Amount Value Amount Value Financial liabilities: Senior secured credit facilities $ 5,103.0 $ 4,759.7 $ 5,198.7 $ 5,231.7 5.5% senior notes due 2027 2,000.0 2,062.5 2,000.0 2,135.0 Senior secured credit facilities, revolving portion 246.0 221.7 — — Other indebtedness 24.0 24.2 25.6 25.9 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss Balances, Net of Tax | Accumulated O Accumulated other comprehensive loss balances, net of tax consist of the following (in millions): Interest Rate Swap Foreign Currency Translation Accumulated Other Comprehensive Loss Balance, December 31, 2019 $ (2.8 ) $ (250.2 ) $ (253.0 ) Net current period other comprehensive loss (2.4 ) (150.7 ) (153.1 ) Balance, March 31, 2020 $ (5.2 ) $ (400.9 ) $ (406.1 ) |
Schedule of Adjustments to Accumulated Other Comprehensive Loss | Adjustments to accumulated other comprehensive loss are as follows (in millions): Three Months Ended March 31, 2020 2019 Pretax Tax Effect Pretax Tax Effect Interest Rate Swap Unrealized losses on interest rate swaps $ (1.5 ) $ 0.8 $ — $ — Reclassification of losses into net earnings on interest rate swaps (1.7 ) — — — Net change in cash flow hedges (3.2 ) 0.8 — — Foreign Currency Translation Current period translation adjustments (151.5 ) 0.8 42.0 (0.2 ) Net cumulative translation adjustments (151.5 ) 0.8 42.0 (0.2 ) Total other comprehensive (loss) income $ (154.7 ) $ 1.6 $ 42.0 $ (0.2 ) |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 United States $ 862.0 $ 828.3 United Kingdom 156.2 166.3 Europe (excluding United Kingdom), Middle East and Africa 63.0 48.3 Asia-Pacific and Japan 45.4 51.6 Canada 28.6 27.2 Americas, excluding United States and Canada 18.4 15.5 Total $ 1,173.6 $ 1,137.2 The following table disaggregates our revenues by source (in millions): Three Months Ended March 31, 2020 2019 Software-enabled services $ 989.5 $ 972.0 Maintenance and term licenses 159.8 130.1 Professional services 20.0 20.0 Perpetual licenses 4.3 15.1 Total $ 1,173.6 $ 1,137.2 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock-Based Compensation Expense Recognized | S tock options, SARs, RSUs and RSAs The amount of stock-based compensation expense recognized in our Condensed Consolidated Statements of Comprehensive (Loss) Income for the three months ended March 31, 2020 and 2019 was as follows (in millions): Three Months Ended March 31, Condensed Consolidated Statements of Comprehensive (Loss) Income Classification 2020 2019 Cost of software-enabled services $ 9.1 $ 8.6 Cost of license, maintenance and other related 1.3 1.4 Total cost of revenues 10.4 10.0 Selling and marketing 3.5 3.0 Research and development 2.9 2.6 General and administrative 5.7 4.8 Total operating expenses 12.1 10.4 Total stock-based compensation expense $ 22.5 $ 20.4 |
Summary of Stock Option and Stock Appreciation Rights ("SARs") Activity as well as Restricted Stock Unit ("RSUs") Activity | The following table summarizes stock option and stock appreciation rights (“SARs”) activity as well as restricted stock unit (“RSUs”) activity for the three months ended March 31, 2020 (shares in millions): Stock Options and SARs RSUs Shares Shares Outstanding at December 31, 2019 42.1 0.5 Granted 0.1 — Cancelled/forfeited (0.6 ) — Vested — (0.2 ) Exercised (1.3 ) — Outstanding at March 31, 2020 40.3 0.3 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 Net income $ 99.2 $ 80.8 Shares: Weighted average common shares outstanding — used in calculation of basic EPS 255.3 251.5 Weighted average common stock equivalents — stock options and restricted shares 10.3 12.2 Weighted average common and common equivalent shares outstanding — used in calculation of diluted EPS 265.6 263.7 Earnings per share - Basic $ 0.39 $ 0.32 Earnings per share - Diluted $ 0.37 $ 0.31 |
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, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 764.6 | $ 776.8 |
Less: accumulated depreciation and amortization | (328.2) | (310.4) |
Total property, plant and equipment, net | 436.4 | 466.4 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46.5 | 47.5 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 295.1 | 302.2 |
Equipment, Furniture, and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 423 | $ 427.1 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 27.1 | $ 32 |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||
Total investments | $ 175.5 | $ 160.1 |
Partnership Interests in Private Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 61.2 | 76.7 |
Marketable Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | 29.8 | 37.9 |
Non Marketable Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Total investments | $ 84.5 | $ 45.5 |
Investments - Schedule of Reali
Investments - Schedule of Realized and Unrealized Gains and Losses on Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||
Unrealized (losses) gains on equity securities held as of the end of the period | $ (11.1) | $ 7.3 |
Realized gains (losses) for equity securities sold during the period | 1.4 | (0.2) |
Total (losses) gains recognized in other (expense) income, net | $ (9.7) | $ 7.1 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) shares in Millions | Feb. 27, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||||
Total investments | $ 175,500,000 | $ 160,100,000 | ||
Investments in private equity funds percentage | 74.00% | 75.00% | ||
Private equity fund termination date | 2020 | |||
Private equity fund termination extension period | 1 year | |||
Unfunded commitments | $ 0 | |||
Non Marketable Equity Securities [Member] | ||||
Schedule of Investments [Line Items] | ||||
Fair value, adjusted downward | 1,000,000 | |||
Fair value, adjusted upward | $ 400,000 | |||
Total investments | 84,500,000 | $ 45,500,000 | ||
Partnership Interests in Private Equity Funds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Total investments | 61,200,000 | 76,700,000 | ||
Investments, fair value | 57,100,000 | 72,100,000 | ||
Equity method investments, fair value | 4,100,000 | 4,600,000 | ||
Other Private Equity Fund [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investments, fair value | $ 1,600,000 | $ 1,600,000 | ||
Series A Convertible Preferred Stock [Member] | Non Marketable Equity Securities [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number of shares acquired | 40 | |||
Investment acquired purchase price | $ 40,000,000 |
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, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||
Deferred compensation liabilities | $ (14.1) | $ (20.8) |
Total | 673.7 | 1,068.2 |
Money Market Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Investments measured at fair value | 658 | 1,051.1 |
Marketable Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investments measured at fair value | 29.8 | 37.9 |
Quoted prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Schedule of Investments [Line Items] | ||
Deferred compensation liabilities | (14.1) | (20.8) |
Total | 673.7 | 1,068.2 |
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 | 658 | 1,051.1 |
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 | $ 29.8 | $ 37.9 |
Unconsolidated Affiliates - Sch
Unconsolidated Affiliates - Schedule of Investments in Unconsolidated Affiliates (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||
Carrying Value | $ 228.2 | $ 234.8 |
Excess carrying value of investment over proportionate share of net assets | $ 148.5 | |
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 | $ 44.1 | |
Pershing Road Development Company, LLC [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50.00% | |
Carrying Value | $ 72.5 | |
Excess carrying value of investment over proportionate share of net assets | $ 74.6 | |
Broadway Square Partners, LLP [Member] | ||
Schedule of Investments [Line Items] | ||
Ownership Percentage | 50.00% | |
Carrying Value | $ 51.2 | |
Excess carrying value of investment over proportionate share of net assets | 29.8 | |
Other Unconsolidated Affiliates [Member] | ||
Schedule of Investments [Line Items] | ||
Carrying Value | $ 8.6 |
Unconsolidated Affiliates - S_2
Unconsolidated Affiliates - Schedule of Equity in Earnings of Unconsolidated Affiliates (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Investments [Line Items] | ||
Equity in earnings of unconsolidated affiliates | $ 0.7 | |
International Financial Data Services L.P. [Member] | ||
Schedule of Investments [Line Items] | ||
Equity in earnings of unconsolidated affiliates | 0.7 | $ 0.7 |
Pershing Road Development Company, LLC [Member] | ||
Schedule of Investments [Line Items] | ||
Equity in earnings of unconsolidated affiliates | 0.7 | 0.5 |
Broadway Square Partners, LLP [Member] | ||
Schedule of Investments [Line Items] | ||
Equity in earnings of unconsolidated affiliates | 0.3 | 0.3 |
Other Unconsolidated Affiliates [Member] | ||
Schedule of Investments [Line Items] | ||
Equity in earnings of unconsolidated affiliates | $ (1) | $ (1.5) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | Mar. 24, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Revenues | $ 1,173.6 | $ 1,137.2 | |
Captricity [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, effective date of acquisition | Mar. 24, 2020 | ||
Consideration paid, net of cash plus the costs of transaction | $ 15.3 | ||
Revenues | $ 0.1 | ||
Captricity [Member] | Completed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Amortized period | 7 years | ||
Captricity [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Amortized period | 15 years |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Price for Acquisitions of Acquiree (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 24, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 7,859.7 | $ 7,959.9 | |
Captricity [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 0.3 | ||
Other assets | 3.1 | ||
Goodwill | 8.3 | ||
Accounts payable | (0.4) | ||
Accrued employee compensation and benefits | (0.3) | ||
Deferred revenue | (2.1) | ||
Other liabilities assumed | (0.8) | ||
Consideration paid, net of cash acquired | 15.3 | ||
Acquired Client Relationships and Contracts [Member] | Captricity [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired | 4.3 | ||
Completed Technology [Member] | Captricity [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired | $ 2.9 |
Acquisitions - Schedule of Seve
Acquisitions - Schedule of Severance Expense Recognized (Detail) - DST [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | $ 31.4 | $ 4.9 |
Total Cost of Revenues [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 22.9 | 0.6 |
Total Cost of Revenues [Member] | Software-enabled Services [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 21.7 | 0.6 |
Total Cost of Revenues [Member] | License, Maintenance and Related [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 1.2 | |
Selling and Marketing [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 1.1 | 2.7 |
Research and Development [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 5.1 | 0.9 |
General and Administrative [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | 2.3 | 0.7 |
Total Operating Expenses [Member] | ||
Business Combination Separately Recognized Transactions [Line Items] | ||
Total severance expense | $ 8.5 | $ 4.3 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Combinations [Abstract] | ||
Revenues | $ 1,177.3 | $ 1,166.5 |
Net income | $ 100.4 | $ 84.7 |
Goodwill - Summary of Change in
Goodwill - Summary of Change in Carrying Value of Goodwill (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 7,959.9 |
2020 acquisitions | 8.3 |
Adjustments to prior acquisitions | (2.9) |
Effect of foreign currency translation | (105.6) |
Ending balance | $ 7,859.7 |
Debt - Component of Debt (Detai
Debt - Component of Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Other indebtedness | $ 24 | $ 25.6 |
Unamortized original issue discount and debt issuance costs | (66.7) | (70.2) |
Debt | 7,306.3 | 7,154.1 |
Less: current portion of long-term debt | 320 | 76.3 |
Long-term debt | 6,986.3 | 7,077.8 |
Secured Debt [Member] | Senior Secured Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | 5,103 | 5,198.7 |
Secured Debt [Member] | Senior Secured Credit Facilities Revolving Portion [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | 246 | |
Senior Notes [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt gross | $ 2,000 | $ 2,000 |
Debt - Component of Debt (Paren
Debt - Component of Debt (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Secured Debt [Member] | Senior Secured Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Debt, weighted-average interest rate of credit facility | 2.74% | 4.05% |
Secured Debt [Member] | Senior Secured Credit Facilities Revolving Portion [Member] | ||
Debt Instrument [Line Items] | ||
Debt, weighted-average interest rate of credit facility | 2.96% | |
Senior Notes [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 5.50% | 5.50% |
Debt, due date | 2027 | 2027 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Jan. 31, 2020 | Jan. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 23, 2020 | Feb. 29, 2020 |
Debt Instrument [Line Items] | ||||||
Gain (loss) on extinguishment of debt | $ (2.8) | $ (7.1) | ||||
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] | ||||||
Credit facility, amount available | $ 211 | |||||
Letter of credit sub-facility, outstanding amount | $ 35 | |||||
Term Loan B [Member] | Senior Secured Credit Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate terms | Pursuant to the Amendment, the interest rate margin applicable to Term Loan B was reduced from LIBOR plus 2.25% to LIBOR plus 1.75% | |||||
Term Loan B [Member] | Senior Secured Credit Facilities [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.75% | 2.25% |
Debt - Schedule of Carrying Amo
Debt - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Amount [Member] | Senior Secured Credit Facilities [Member] | ||
Financial liabilities: | ||
Credit facility | $ 5,103 | $ 5,198.7 |
Carrying Amount [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Financial liabilities: | ||
Senior notes | 2,000 | 2,000 |
Carrying Amount [Member] | Senior Secured Credit Facilities, Revolving Portion [Member] | ||
Financial liabilities: | ||
Credit facility | 246 | |
Carrying Amount [Member] | Other Indebtedness [Member] | ||
Financial liabilities: | ||
Credit facility | 24 | 25.6 |
Fair Value [Member] | Senior Secured Credit Facilities [Member] | ||
Financial liabilities: | ||
Credit facility | 4,759.7 | 5,231.7 |
Fair Value [Member] | 5.5% Senior Notes due 2027 [Member] | ||
Financial liabilities: | ||
Credit facility | 2,062.5 | 2,135 |
Fair Value [Member] | Senior Secured Credit Facilities, Revolving Portion [Member] | ||
Financial liabilities: | ||
Credit facility | 221.7 | |
Fair Value [Member] | Other Indebtedness [Member] | ||
Financial liabilities: | ||
Credit facility | $ 24.2 | $ 25.9 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | |
Equity [Abstract] | ||||||
Quarterly cash dividend paid | $ 0.125 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | |
Dividends paid on common stock | $ 31.9 | $ 25.2 | $ 25.2 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Loss Balances, Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | $ 5,116.1 | $ 4,580 |
Net current period other comprehensive loss | (153.1) | 41.8 |
Ending balance | 5,087.6 | 4,733.5 |
Interest Rate Swap [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (2.8) | |
Net current period other comprehensive loss | (2.4) | |
Ending balance | (5.2) | |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (250.2) | |
Net current period other comprehensive loss | (150.7) | |
Ending balance | (400.9) | |
Accumulated Other Comprehensive (Loss) Income [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (253) | (343) |
Net current period other comprehensive loss | (153.1) | |
Ending balance | $ (406.1) | $ (301.2) |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Adjustments to Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive (loss) income, Pretax | $ (154.7) | $ 42 |
Other comprehensive (loss) income, Tax Effect | 1.6 | (0.2) |
Interest Rate Swap [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss), before reclassifications, Pretax | (1.5) | |
Reclassification of losses into net earnings on interest rate swaps, Pretax | (1.7) | |
Other comprehensive (loss) income, Pretax | (3.2) | |
Other comprehensive income (loss) before reclassifications, Tax Effect | 0.8 | |
Other comprehensive (loss) income, Tax Effect | 0.8 | |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive income (loss), before reclassifications, Pretax | (151.5) | 42 |
Other comprehensive (loss) income, Pretax | (151.5) | 42 |
Other comprehensive income (loss) before reclassifications, Tax Effect | 0.8 | (0.2) |
Other comprehensive (loss) income, Tax Effect | $ 0.8 | $ (0.2) |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Deferred Revenue Arrangement [Line Items] | |||
Deferred revenue presented net within contract assets arising from contract | $ 44.6 | $ 51.8 | |
Deferred revenue recognized | 108 | $ 99.9 | |
Revenue expected to be recognized from remaining performance obligations | 623 | ||
Revenue expected to be recognized from remaining performance obligations in next twelve months | $ 343 | ||
Minimum [Member] | Software-enabled Services [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Revenue recognition period | 1 year | ||
Maximum [Member] | Software-enabled Services [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Revenue recognition period | 5 years |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | $ 1,173.6 | $ 1,137.2 |
United States [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 862 | 828.3 |
United Kingdom [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 156.2 | 166.3 |
Europe (excluding United Kingdom), Middle East and Africa [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 63 | 48.3 |
Asia-Pacific and Japan [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 45.4 | 51.6 |
Canada [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 28.6 | 27.2 |
Americas, excluding United States and Canada [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | $ 18.4 | $ 15.5 |
Revenues - Disaggregation of _2
Revenues - Disaggregation of Revenues by Source (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | $ 1,173.6 | $ 1,137.2 |
Software-enabled Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 989.5 | 972 |
Maintenance and Term Licenses [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 159.8 | 130.1 |
Professional Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | 20 | 20 |
Perpetual Licenses [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenue | $ 4.3 | $ 15.1 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 22.5 | $ 20.4 |
Total Cost of Revenues [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 10.4 | 10 |
Total Cost of Revenues [Member] | Software-enabled Services [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 9.1 | 8.6 |
Total Cost of Revenues [Member] | License, Maintenance and Other Related [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 1.3 | 1.4 |
Selling and Marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 3.5 | 3 |
Research and Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 2.9 | 2.6 |
General and Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 5.7 | 4.8 |
Total Operating Expenses [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 12.1 | $ 10.4 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Stock Option and Stock Appreciation Rights ("SARs") Activity as well as Restricted Stock Unit ("RSUs") Activity (Detail) | 3 Months Ended |
Mar. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding Opening | 42,100,000 |
Granted | 100,000 |
Cancelled/forfeited | (600,000) |
Exercised | (1,300,000) |
Number of Shares, Outstanding Closing | 40,300,000 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding Opening | 500,000 |
Vested | (200,000) |
Number of Shares, Outstanding Closing | 300,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 20.00% | 16.50% |
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, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income | $ 99.2 | $ 80.8 |
Shares: | ||
Weighted average common shares outstanding — used in calculation of basic EPS | 255.3 | 251.5 |
Weighted average common stock equivalents — stock options and restricted shares | 10.3 | 12.2 |
Weighted average common and common equivalent shares outstanding — used in calculation of diluted EPS | 265.6 | 263.7 |
Earnings per share - Basic | $ 0.39 | $ 0.32 |
Earnings per share - Diluted | $ 0.37 | $ 0.31 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock options and SARs [Member] | ||
Earnings Per Share [Line Items] | ||
Anti-dilutive shares not included in computation of diluted EPS | 12.2 | 5.7 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Apr. 30, 2020USD ($) | |
Subsequent Event [Line Items] | |
Total consideration | $ 120 |
Consideration paid, net of cash plus the costs of transaction | 100 |
Common Stock [Member] | |
Subsequent Event [Line Items] | |
Consideration paid, net of cash plus the costs of transaction | $ 20 |