Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 0-25346 | |
Entity Registrant Name | ACI WORLDWIDE, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-0772104 | |
Entity Address, Address Line One | 3520 Kraft Rd, | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Naples, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34105 | |
City Area Code | 239 | |
Local Phone Number | 403-4660 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 115,598,645 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000935036 | |
Current Fiscal Year End Date | --12-31 | |
NASDAQ/NGS (GLOBAL SELECT MARKET) | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.005 par value | |
Trading Symbol | ACIW | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 121,581 | $ 148,502 |
Receivables, net of allowances of $3,790 and $3,912, respectively | 325,333 | 348,182 |
Settlement assets | 498,101 | 32,256 |
Prepaid expenses | 28,160 | 23,277 |
Other current assets | 31,715 | 14,260 |
Total current assets | 1,004,890 | 566,477 |
Noncurrent assets | ||
Accrued receivables, net | 190,326 | 189,010 |
Property and equipment, net | 72,747 | 72,729 |
Operating lease right-of-use assets | 60,280 | 0 |
Software, net | 235,936 | 137,228 |
Goodwill | 1,278,265 | 909,691 |
Intangible assets, net | 363,346 | 168,127 |
Deferred income taxes, net | 62,970 | 27,048 |
Other noncurrent assets | 71,996 | 52,145 |
TOTAL ASSETS | 3,340,756 | 2,122,455 |
Current liabilities | ||
Accounts payable | 36,002 | 39,602 |
Settlement liabilities | 477,064 | 31,605 |
Employee compensation | 41,285 | 38,115 |
Current portion of long-term debt | 34,119 | 20,767 |
Deferred revenue | 76,731 | 104,843 |
Other current liabilities | 69,679 | 61,688 |
Total current liabilities | 734,880 | 296,620 |
Noncurrent liabilities | ||
Deferred revenue | 60,490 | 51,292 |
Long-term debt | 1,373,555 | 650,989 |
Deferred income taxes, net | 24,407 | 31,715 |
Operating lease liabilities | 48,281 | 0 |
Other noncurrent liabilities | 40,206 | 43,608 |
Total liabilities | 2,281,819 | 1,074,224 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at September 30, 2019, and December 31, 2018 | 0 | 0 |
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at September 30, 2019, and December 31, 2018 | 702 | 702 |
Additional paid-in capital | 660,653 | 632,235 |
Retained earnings | 875,344 | 863,768 |
Treasury stock, at cost, 24,958,573 and 24,401,694 shares at September 30, 2019, and December 31, 2018, respectively | (383,126) | (355,857) |
Accumulated other comprehensive loss | (94,636) | (92,617) |
Total stockholders’ equity | 1,058,937 | 1,048,231 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,340,756 | $ 2,122,455 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 3,790 | $ 3,912 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (in shares) | 280,000,000 | 280,000,000 |
Common stock, shares issued (in shares) | 140,525,055 | 140,525,055 |
Treasury stock, shares (in shares) | 24,958,573 | 24,401,694 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenues | |||||
Total revenues | $ 354,901 | $ 245,525 | $ 858,374 | $ 689,830 | |
Operating expenses | |||||
Cost of revenue | [1] | 174,168 | 102,473 | 444,349 | 326,070 |
Research and development | 36,543 | 36,008 | 111,972 | 110,661 | |
Selling and marketing | 30,417 | 28,252 | 92,809 | 93,305 | |
General and administrative | 27,286 | 29,537 | 108,122 | 87,023 | |
Depreciation and amortization | 31,169 | 20,896 | 79,779 | 63,274 | |
Total operating expenses | 299,583 | 217,166 | 837,031 | 680,333 | |
Operating income | 55,318 | 28,359 | 21,343 | 9,497 | |
Other income (expense) | |||||
Interest expense | (18,987) | (12,573) | (45,924) | (31,655) | |
Interest income | 2,988 | 2,763 | 9,018 | 8,249 | |
Other, net | (2,369) | (1,304) | (2,879) | (3,036) | |
Total other income (expense) | (18,368) | (11,114) | (39,785) | (26,442) | |
Income (loss) before income taxes | 36,950 | 17,245 | (18,442) | (16,945) | |
Income tax expense (benefit) | 5,136 | 2,012 | (30,018) | 1,824 | |
Net income (loss) | $ 31,814 | $ 15,233 | $ 11,576 | $ (18,769) | |
Income (loss) per common share | |||||
Basic (in dollars per share) | $ 0.27 | $ 0.13 | $ 0.10 | $ (0.16) | |
Diluted (in dollars per share) | $ 0.27 | $ 0.13 | $ 0.10 | $ (0.16) | |
Weighted average common shares outstanding | |||||
Basic (in shares) | 116,169 | 115,889 | 116,337 | 115,615 | |
Diluted (in shares) | 118,307 | 117,492 | 118,460 | 115,615 | |
Software as a service and platform as a service | |||||
Revenues | |||||
Total revenues | $ 192,952 | $ 104,519 | $ 474,008 | $ 322,399 | |
License | |||||
Revenues | |||||
Total revenues | 92,058 | 68,964 | 165,677 | 142,565 | |
Maintenance | |||||
Revenues | |||||
Total revenues | 52,638 | 54,373 | 159,671 | 166,080 | |
Services | |||||
Revenues | |||||
Total revenues | $ 17,253 | $ 17,669 | $ 59,018 | $ 58,786 | |
[1] | The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 31,814 | $ 15,233 | $ 11,576 | $ (18,769) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (1,610) | (3,862) | (2,019) | (11,110) |
Total other comprehensive loss | (1,610) | (3,862) | (2,019) | (11,110) |
Comprehensive income (loss) | $ 30,204 | $ 11,371 | $ 9,557 | $ (29,879) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2017 | $ 764,597 | $ 702 | $ 610,345 | $ 550,866 | $ (319,960) | $ (77,356) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (18,769) | (18,769) | ||||
Other comprehensive loss | (11,110) | (11,110) | ||||
Stock-based compensation | 20,642 | 20,642 | ||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 20,712 | 1,560 | 19,152 | |||
Repurchase of common stock | (54,527) | (54,527) | ||||
Repurchase of restricted share awards and restricted share units for tax withholdings | (2,588) | (2,588) | ||||
Cumulative effect of accounting change, ASC 606 | 243,981 | 243,981 | ||||
Ending balance at Sep. 30, 2018 | 962,938 | 702 | 632,547 | 776,078 | (357,923) | (88,466) |
Beginning balance at Jun. 30, 2018 | 940,715 | 702 | 624,851 | 760,845 | (361,079) | (84,604) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 15,233 | 15,233 | ||||
Other comprehensive loss | (3,862) | (3,862) | ||||
Stock-based compensation | 6,575 | 6,575 | ||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 4,277 | 1,121 | 3,156 | |||
Ending balance at Sep. 30, 2018 | 962,938 | 702 | 632,547 | 776,078 | (357,923) | (88,466) |
Beginning balance at Dec. 31, 2018 | 1,048,231 | 702 | 632,235 | 863,768 | (355,857) | (92,617) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 11,576 | 11,576 | ||||
Other comprehensive loss | (2,019) | (2,019) | ||||
Stock-based compensation | 30,328 | 30,328 | ||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 9,260 | (1,910) | 11,170 | |||
Repurchase of common stock | (35,617) | (35,617) | ||||
Repurchase of restricted share awards and restricted share units for tax withholdings | (2,822) | (2,822) | ||||
Ending balance at Sep. 30, 2019 | 1,058,937 | 702 | 660,653 | 875,344 | (383,126) | (94,636) |
Beginning balance at Jun. 30, 2019 | 1,052,577 | 702 | 650,797 | 843,530 | (349,426) | (93,026) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 31,814 | 31,814 | ||||
Other comprehensive loss | (1,610) | (1,610) | ||||
Stock-based compensation | 9,371 | 9,371 | ||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 1,784 | 485 | 1,299 | |||
Repurchase of common stock | (34,986) | (34,986) | ||||
Repurchase of restricted share awards and restricted share units for tax withholdings | (13) | (13) | ||||
Ending balance at Sep. 30, 2019 | $ 1,058,937 | $ 702 | $ 660,653 | $ 875,344 | $ (383,126) | $ (94,636) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 3 Months Ended | 9 Months Ended | 178 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Repurchase of common stock (in shares) | 1,204,300 | 1,228,102 | 2,346,427 | 45,357,495 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 11,576 | $ (18,769) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation | 17,916 | 17,896 |
Amortization | 70,627 | 54,993 |
Amortization of operating lease right-of-use assets | 10,877 | 0 |
Amortization of deferred debt issuance costs | 2,909 | 3,881 |
Deferred income taxes | (39,323) | (7,139) |
Stock-based compensation expense | 30,328 | 20,642 |
Other | 2,431 | 1,432 |
Changes in operating assets and liabilities, net of impact of acquisitions: | ||
Receivables | 34,690 | 58,443 |
Accounts payable | (8,414) | (4,217) |
Accrued employee compensation | 1,740 | 92 |
Current income taxes | (8,536) | (10,429) |
Deferred revenue | (17,735) | (47) |
Other current and noncurrent assets and liabilities | (20,148) | (16,316) |
Net cash flows from operating activities | 88,938 | 100,462 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (18,739) | (16,434) |
Purchases of software and distribution rights | (18,565) | (21,876) |
Acquisition of businesses, net of cash acquired | (757,268) | 0 |
Other | (18,474) | (1,467) |
Net cash flows from investing activities | (813,046) | (39,777) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 2,662 | 2,326 |
Proceeds from exercises of stock options | 6,677 | 18,405 |
Repurchase of restricted share awards and restricted share units for tax withholdings | (2,822) | (2,588) |
Repurchases of common stock | (35,617) | (54,527) |
Proceeds from senior notes | 0 | 400,000 |
Redemption of senior notes | 0 | (300,000) |
Proceeds from revolving credit facility | 280,000 | 109,000 |
Repayment of revolving credit facility | (15,000) | (111,000) |
Proceeds from term portion of credit agreement | 500,000 | 0 |
Repayment of term portion of credit agreement | (19,162) | (105,332) |
Payments for debt issuance costs | (12,830) | (7,253) |
Payments on other debt | (8,209) | (2,332) |
Net cash flows from financing activities | 695,699 | (53,301) |
Effect of exchange rate fluctuations on cash | 1,488 | (752) |
Net increase (decrease) in cash and cash equivalents | (26,921) | 6,632 |
Cash and cash equivalents, beginning of period | 148,502 | 69,710 |
Cash and cash equivalents, end of period | 121,581 | 76,342 |
Supplemental cash flow information | ||
Income taxes paid | 21,205 | 22,439 |
Interest paid | $ 47,741 | $ 31,914 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements The unaudited condensed consolidated financial statements include the accounts of ACI Worldwide, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements as of September 30, 2019 , and for the three and nine months ended September 30, 2019 and 2018 , are unaudited and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation, in all material respects, of the financial position and operating results for the interim periods. The condensed consolidated balance sheet as of December 31, 2018 , is derived from the audited financial statements. Certain prior period amounts have been reclassified to conform to current year presentation. The Company reclassified $32.3 million from other current assets to settlement assets and $31.6 million from other current liabilities to settlement liabilities in the condensed consolidated balance sheet as of December 31, 2018. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2018 , filed on March 1, 2019. Results for the three and nine months ended September 30, 2019 , are not necessarily indicative of results that may be attained in the future. The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Other Current Liabilities The components of other current liabilities are included in the following table (in thousands): September 30, December 31, Operating lease liabilities $ 15,112 $ — Vendor financed licenses 8,217 3,551 Royalties payable 6,643 11,318 Accrued interest 3,606 8,407 Other 36,101 38,412 Total other current liabilities $ 69,679 $ 61,688 Settlement Assets and Liabilities Individuals and businesses settle their obligations to the Company’s various Biller clients using credit or debit cards or via automated clearing house (“ACH”) payments. The Company creates a receivable for the amount due from the credit or debit card processor and an offsetting payable to the client. Upon confirmation that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may (1) receive the funds into bank accounts controlled by and in the Company’s name that are not disbursed to its clients by the end of the day, resulting in a settlement deposit on the Company’s books and (2) disburse funds to its clients in advance of receiving funds from the credit or debit card processor, resulting in a net settlement receivable position. Off Balance Sheet Settlement Accounts The Company also enters into agreements with certain Biller clients to process payment funds on their behalf. When an ACH or automated teller machine network payment transaction is processed, a transaction is initiated to withdraw funds from the designated source account and deposit them into a settlement account, which is a trust account maintained for the benefit of the Company’s clients. A simultaneous transaction is initiated to transfer funds from the settlement account to the intended destination account. These “back to back” transactions are designed to settle at the same time, usually overnight, such that the Company receives the funds from the source at the same time as it sends the funds to their destination. However, due to the transactions being with various financial institutions there may be timing differences that result in float balances. These funds are maintained in accounts for the benefit of the client, which is separate from the Company’s corporate assets. As the Company does not take ownership of the funds, these settlement accounts are not included in the Company’s balance sheet. The Company is entitled to interest earned on the fund balances. The collection of interest on these settlement accounts is considered in the Company’s determination of its fee structure for clients and represents a portion of the payment for services performed by the Company. The amount of settlement funds as of September 30, 2019 , and December 31, 2018 , was $326.1 million and $256.5 million , respectively. Fair Value The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. The fair value of the Company’s 5.750% Senior Notes due 2026 (“2026 Notes”) as of September 30, 2019 , and December 31, 2018 , was $426.0 million and $395.0 million , respectively. The fair values of cash and cash equivalents approximate the carrying values due to the short period of time to maturity (Level 2 of the fair value hierarchy). Goodwill In accordance with the Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other, the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level and has identified its operating segments, ACI On Demand and ACI On Premise, as its reporting units. Changes in the carrying amount of goodwill attributable to each reporting unit during the nine months ended September 30, 2019 , were as follows (in thousands): ACI On Demand ACI On Premise Total Gross Balance, prior to December 31, 2018 $ 183,783 $ 773,340 $ 957,123 Total impairment prior to December 31, 2018 — (47,432 ) (47,432 ) Balance, December 31, 2018 183,783 725,908 909,691 Goodwill from acquisitions (1) 368,574 — 368,574 Balance, September 30, 2019 $ 552,357 $ 725,908 $ 1,278,265 (1) Goodwill from acquisitions relates to the goodwill recorded for the acquisition of E Commerce Group Products, Inc. ("ECG"), along with ECG's subsidiary, Speedpay, Inc. (collectively referred to as "Speedpay") and Walletron, Inc. ("Walletron"), as discussed in Note 3, Acquisition . The purchase price allocations for Speedpay and Walletron are preliminary as of September 30, 2019 , and are subject to future changes during the maximum one-year measurement period. Recoverability of goodwill is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in impairment testing in the absence of available transactional market evidence to determine the fair value. The calculated fair value was substantially in excess of the current carrying value for all reporting units based upon the October 1, 2018, annual impairment test and there have been no indications of impairment in the subsequent periods. Equity Method Investment On July 23, 2019, the Company invested $18.3 million for a 30% non-controlling financial interest in a payment technology and services company in India. The Company accounted for this investment using the equity method in accordance with ASC 323, Investments - Equity Method and Joint Ventures . Accordingly, we recorded an initial investment of $18.5 million , which includes direct costs of acquiring the investment. We will record our share of earnings and losses in the investment on a one-quarter lag basis, which will result in an adjustment to our initial investment during the three months ended December 31, 2019. New Accounting Standards Recently Adopted In July 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-07, Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates , which clarifies or improves the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC 's regulations. ASU 2019-07 was effective upon issuance and did not have a material impact on the condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-2, Leases (codified as “ASC 842”). ASC 842 requires lessees to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases unless, as a policy election, a lessee elects not to apply ASC 842 to short-term leases. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. The Company adopted ASC 842 on January 1, 2019 (the effective date), using the optional transition method to not apply the new lease standard in the comparative periods presented and elected the “practical expedient package”, which permits the Company to not reassess prior conclusions about lease identification, lease classification, and initial direct costs. ASC 842 also provides practical expedients for the Company’s ongoing accounting including the combination of lease and non-lease components into a single lease component which the Company has elected to apply to its leases. As of January 1, 2019, the Company recognized ROU assets and operating lease liabilities of $63.3 million and $68.6 million , respectively. Refer to Note 13 , Leases , for further details. In February 2018, the FASB issued ASU 2018-2, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU provides an option to reclassify stranded tax effects within accumulated other comprehensive income (“AOCI”) to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the 2017 U.S. Tax Cuts and Jobs Act (or portion thereof) is recorded. This ASU requires disclosure of a description of the accounting policy for releasing income tax effects from AOCI; whether election is made to reclassify the stranded income tax effects from the 2017 U.S. Tax Cuts and Jobs Act; and information about the income tax effects that are reclassified. The Company adopted ASU 2018-2 as of January 1, 2019. The adoption of ASU 2018-2 did not have an impact on the condensed consolidated balance sheet, results of operations, and statement of cash flows. Recently Issued Accounting Standards Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, and subsequent amendments to the guidance, ASU 2018-19 in November 2018, ASU 2019-04 in April 2019, and ASU 2019-05 in May 2019 . This ASU provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in ASU 2016-13 replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company will be required to use a forward-looking expected credit loss model for accounts receivables. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019. The Company has established a project team to assess implementing changes to its processes and controls in conjunction with a comprehensive review of its financial instruments. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on its condensed consolidated balance sheet, results of operations, and statement of cash flows. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue In accordance with ASC 606, Revenue From Contracts With Customers , revenue is recognized upon transfer of control of promised products and/or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. Refer to Note 11 , Segment Information , for further details, including disaggregation of revenue based on primary solution category and geographic location. Total receivables represent amounts billed and amounts earned that are to be billed in the future (i.e., accrued receivables). Included in accrued receivables are services, software as a service ("SaaS"), and platform as a service ("PaaS") revenues earned in the current period but billed in the following period, and amounts due under multi-year software license arrangements with extended payment terms for which the Company has an unconditional right to invoice and receive payment subsequent to invoicing. Total receivables, net is comprised of the following (in thousands): September 30, December 31, Billed receivables $ 187,080 $ 239,275 Allowance for doubtful accounts (3,790 ) (3,912 ) Billed receivables, net 183,290 235,363 Accrued receivables 365,478 336,858 Significant financing component (33,109 ) (35,029 ) Total accrued receivables, net 332,369 301,829 Less: current accrued receivables 152,668 123,053 Less: current significant financing component (10,625 ) (10,234 ) Total long-term accrued receivables, net 190,326 189,010 Total receivables, net $ 515,659 $ 537,192 No customer accounted for more than 10% of the Company’s consolidated receivables balance as of September 30, 2019 , or December 31, 2018 . Deferred revenue includes amounts due or received from customers for software licenses, maintenance, services, and/or SaaS and PaaS services in advance of recording the related revenue. Changes in deferred revenue were as follows (in thousands): Balance, December 31, 2018 $ 156,135 Deferral of revenue 121,310 Recognition of deferred revenue (139,070 ) Foreign currency translation (1,154 ) Balance, September 30, 2019 $ 137,221 Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include: • Revenue that will be recognized in future periods from capacity overages that are accounted for as a usage-based royalty. • SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the ‘right to invoice’ practical expedient. • SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the direct allocation method. Revenue allocated to remaining performance obligations was $618.5 million as of September 30, 2019 , of which the Company expects to recognize approximately 46% over the next 12 months and the remainder thereafter. During the three and nine months ended September 30, 2019 and 2018 , revenue recognized by the Company from performance obligations satisfied in previous periods was not significant. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition Speedpay On May 9, 2019, the Company acquired Speedpay, a subsidiary of The Western Union Company (“Western Union”), for $754.1 million in cash, including working capital adjustments, pursuant to a Stock Purchase Agreement, among the Company, Western Union, and ACI Worldwide Corp., a wholly owned subsidiary of the Company. The Company has included the financial results of Speedpay in the condensed consolidated financial statements from the date of acquisition. The combination of the Company and Speedpay bill pay solutions serves more than 4,000 customers across the U.S., bringing expanded reach in existing and complementary market segments such as consumer finance, insurance, healthcare, higher education, utilities, government, and mortgage. The acquisition of Speedpay increases the scale of the Company’s On Demand platform business and allows the acceleration of platform innovation through increased research and development and investment in ACI's On Demand platform infrastructure. To fund the acquisition, the Company amended its existing Credit Agreement, dated February 24, 2017, for an additional $500.0 million senior secured term loan (“Delayed Draw Term Loan”), in addition to drawing $250.0 million on the available Revolving Credit Facility. See Note 4 , Debt , for terms of the Credit Agreement. The remaining acquisition consideration was funded with cash on hand. The Company expensed approximately $0.9 million and $22.2 million of costs related to the acquisition of Speedpay for the three and nine months ended September 30, 2019 , respectively. These costs, which consist primarily of investment bank, consulting, and legal fees, are included in general and administrative expenses in the accompanying condensed consolidated statements of operations. Speedpay contributed approximately $87.7 million in revenue and $7.5 million in operating income for the three months ended September 30, 2019 . Speedpay contributed approximately $137.1 million in revenue and $15.2 million in operating income for the nine months ended September 30, 2019 . The consideration paid by the Company to complete the acquisition has been allocated preliminarily to the assets acquired and liabilities assumed based upon estimated fair values as of the date of the acquisition. The allocation of purchase price is based upon external valuation and other analyses that have not been completed as of the date of this filing, including, but not limited to, certain tax matters, software, intangible assets, and accrued liabilities. Accordingly, the purchase price allocations are preliminary and are subject to future adjustments during the maximum one-year allocation period. In connection with the acquisition, the Company recorded the following amounts based upon its preliminary purchase price allocation as of September 30, 2019 , which are subject to completion of the valuation and other analyses (in thousands, except weighted average useful lives): Amount Weighted Average Useful Lives Current assets: Cash and cash equivalents $ 135 Receivables, net of allowances 18,358 Settlement assets 239,604 Prepaid expenses 317 Other current assets 19,585 Total current assets acquired 277,999 Noncurrent assets: Goodwill 365,928 Software 113,600 7 years Customer relationships 208,500 15 years Trademarks 10,900 5 years Other noncurrent assets 3,745 Total assets acquired 980,672 Current liabilities: Accounts payable 6,743 Settlement liabilities 212,892 Employee compensation 1,959 Other current liabilities 3,802 Total current liabilities acquired 225,396 Noncurrent liabilities: Other noncurrent liabilities 1,219 Total liabilities acquired 226,615 Net assets acquired $ 754,057 During the three months ended September 30, 2019 , the Company made adjustments to the preliminary purchase price allocation as additional information became available for receivables. These adjustments and any resulting adjustments to the statements of operations were not material to the Company’s previously reported operating results or financial position. Factors contributing to the purchase price that resulted in the goodwill (which is tax deductible) include the acquisition of management, sales, and technology personnel with the skills to market new and existing products of the Company, enhanced product capabilities, complementary products and customers. Unaudited Pro Forma Financial Information The pro forma financial information in the table below presents the combined results of operations for ACI and Speedpay as if the acquisition had occurred January 1, 2018. The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transaction been in effect for the periods presented. This pro forma information is not intended to represent or be indicative of actual results had the acquisition occurred as of the beginning of each period, and does not reflect potential synergies, integration costs, or other such costs or savings. Certain pro forma adjustments have been made to net income (loss) for the three and nine months ended September 30, 2019 and 2018 , to give effect to estimated adjustments that remove the amortization expense on eliminated Speedpay historical identifiable intangible assets, add amortization expense for the value of acquired identified intangible assets (primarily acquired software, customer relationships, and trademarks), and add estimated interest expense on the Company’s additional Delayed Draw Term Loan and Revolving Credit Facility borrowings. Additionally, certain transaction expenses that are a direct result of the acquisition have been excluded from the three and nine months ended September 30, 2019 and 2018 . The following is the unaudited summarized pro forma financial information for the periods presented (in thousands, except per share data): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Pro forma revenue $ 354,901 $ 330,983 $ 983,037 $ 957,673 Pro forma net income 32,513 20,379 26,517 3,418 Pro forma income per share: Basic $ 0.28 $ 0.18 $ 0.23 $ 0.03 Diluted 0.27 0.17 0.22 0.03 Walletron On May 9, 2019, the Company also completed the acquisition of Walletron, Inc. ("Walletron"), which delivers patented mobile wallet technology. The Company has included the financial results of Walletron in the condensed consolidated financial statements from the date of acquisition, which were not material. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of September 30, 2019 , the Company had $265.0 million , $765.8 million , and $400.0 million outstanding under its Revolving Credit Facility, Term Loan, and Senior Notes, respectively, with up to $235.0 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended. Credit Agreement On April 5, 2019 , the Company (and its wholly-owned subsidiaries, ACI Worldwide Corp. and Official Payments Corporation ("OPAY")) entered into the Second Amended and Restated Credit Agreement (the “Credit Agreement”) with the lenders, and Bank of America, N.A., as administrative agent for the lenders, to amend and restate the Company's existing agreement, as amended, dated February 24, 2017 . The amended Credit Agreement: permitted the Company to borrow up to $500.0 million in the form of an additional senior secured term loan; extended the revolver and the existing term loan maturity date from February 24, 2022 , to April 5, 2024 ; increased the maximum consolidated senior secured net leverage ratio covenant from 3.50 :1.00 to 3.75 :1.00; and increased the maximum consolidated total net leverage ratio covenant from 4.25 :1.00 to 5.00 :1.00, with subsequent decreases occurring every three quarters thereafter for a specified period of time; among other things. In connection with amending the Credit Agreement, the Company incurred and paid debt issuance costs of $12.8 million during the nine months ended September 30, 2019 . The Credit Agreement consists of (a) a five -year $500.0 million senior secured revolving credit facility (the “Revolving Credit Facility”), which includes sublimits for (1) the issuance of standby letters of credit and (2) swingline loans, (b) a five -year $279.0 million senior secured term loan facility (the "Initial Term Loan") and (c) a five -year $500.0 million Delayed Draw Term Loan (together with the Initial Term Loan, the "Term Loans", and together with the Initial Term Loan and the Revolving Credit Facility, the “Credit Facility”). The Credit Agreement also allows the Company to request optional incremental term loans and increases in the revolving commitment. At the Company’s option, borrowings under the Credit Facility bear interest at an annual rate equal to, either (a) a base rate determined by reference to the highest of (1) the annual interest rate publicly announced by the administrative agent as its Prime Rate, (2) the federal funds effective rate plus 1/2 of 1% , or (3) a London Interbank Offered Rate (“LIBOR”) rate determined by reference to the costs of funds for U.S. dollar deposits for a one-month interest period, adjusted for certain additional costs, plus 1% or (b) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowings, adjusted for certain additional costs, plus an applicable margin. Based on the calculation of the applicable consolidated total leverage ratio, the applicable margin for borrowings under the Credit Facility is between 0.25% to 1.25% with respect to base rate borrowings and between 1.25% and 2.25% with respect to LIBOR rate borrowings. Interest is due and payable monthly. The interest rate in effect as of September 30, 2019 , for the Credit Facility was 4.29% . The Company is also required to pay (a) a commitment fee related to the unutilized commitments under the Revolving Credit Facility, payable quarterly in arrears, (b) letter of credit fees on the maximum amount available to be drawn under all outstanding letters of credit in an amount equal to the applicable margin on LIBOR rate borrowings under the Revolving Credit Facility on an annual basis, payable quarterly in arrears, and (c) customary fronting fees for the issuance of letters of credit fees and agency fees. The Company’s obligations under the Credit Facility and cash management arrangements entered into with lenders under the Credit Facility (or affiliates thereof) and the obligations of the subsidiary guarantors are secured by first-priority security interests in substantially all assets of the Company and any guarantor, including 100% of the capital stock of ACI Worldwide Corp. and each domestic subsidiary of the Company, each domestic subsidiary of any guarantor, and 65% of the voting capital stock of each foreign subsidiary of the Company that is directly owned by the Company or a guarantor, in each case subject to certain exclusions set forth in the credit documentation governing the Credit Facility. The collateral agreement of the Credit Agreement, as amended, released the lien on certain assets of OPAY, our electronic bill presentment and payment affiliate, to allow OPAY to comply with certain eligible securities and unencumbered asset requirements related to money transmitter or transfer license rules and regulations. The Credit Agreement contains a number of covenants that, among other things and subject to certain exceptions, restrict the Company’s and its subsidiaries' ability to: create, incur, assume or suffer to exist any additional indebtedness; create, incur, assume or suffer to exist any liens; enter into agreements and other arrangements that include negative pledge clauses; pay dividends on capital stock or redeem, repurchase or retire capital stock or subordinated indebtedness; create restrictions on the payment of dividends or other distributions by subsidiaries; make investments, loans, advances and acquisitions; merge, consolidate or enter into any similar combination or sell assets, including equity interests of the subsidiaries; enter into sale and leaseback transactions; directly or indirectly engage in transactions with affiliates; alter in any material respect the character or conduct of the business; enter into amendments of or waivers under subordinated indebtedness, organizational documents and certain other material agreements; and hold certain assets and incur certain liabilities. Expected Discontinuation of LIBOR In July 2017, the United Kingdom’s Financial Conduct Authority, which regulates LIBOR, announced it will no longer compel banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee has proposed the Secured Overnight Financing Rate ("SOFR") as its recommended alternative to LIBOR, and the first publication of SOFR rates was released in April 2018. The Company is evaluating the potential impact of the transition from LIBOR as an interest rate benchmark to other potential alternative reference rates, including SOFR. The Company's Credit Agreement is currently indexed to LIBOR and the maturity date of the Credit Agreement extends beyond 2021. The Credit Agreement contemplates the discontinuation of LIBOR and provides options for the Company in such an event. The Company will continue to actively assess the related opportunities and risks involved in this transition. Senior Notes On August 21, 2018 , the Company completed a $400.0 million offering of the 2026 Notes at an issue price of 100% of the principal amount in a private placement for resale to qualified institutional buyers. The 2026 Notes bear interest at an annual rate of 5.750% , payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2019 . Interest accrued from August 21, 2018 . The 2026 Notes will mature on August 15, 2026 . Maturities on debt outstanding as of September 30, 2019 , are as follows (in thousands): Fiscal Year Ending December 31, Remainder of 2019 $ 9,738 2020 38,950 2021 38,950 2022 50,431 2023 69,906 Thereafter 1,222,823 Total $ 1,430,798 The Credit Facility will mature on April 5, 2024 , and the 2026 Notes will mature on August 15, 2026 . The Revolving Credit Facility and 2026 Notes do not amortize. The Term Loans do amortize, with principal payable in consecutive quarterly installments. The Credit Agreement and 2026 Notes contain certain customary affirmative covenants and negative covenants that limit or restrict, subject to certain exceptions, the incurrence of liens, indebtedness of subsidiaries, mergers, advances, investments, acquisitions, transactions with affiliates, change in nature of business, and the sale of the assets. In addition, the Credit Agreement and 2026 Notes contain certain customary mandatory prepayment provisions. The Company is also required to maintain a consolidated leverage ratio at or below a specified amount and an interest coverage ratio at or above a specified amount. As specified in the Credit Agreement and 2026 Notes agreement, if certain events occur and continue, the Company may be required to repay all amounts outstanding under the Credit Facility and 2026 Notes. As of September 30, 2019 , and at all times during the period, the Company was in compliance with its financial debt covenants. Total debt is comprised of the following (in thousands): September 30, December 31, Term loans $ 765,798 $ 284,959 Revolving credit facility 265,000 — 5.750% Senior notes, due August 2026 400,000 400,000 Debt issuance costs (23,124 ) (13,203 ) Total debt 1,407,674 671,756 Less: current portion of term loans 38,950 23,747 Less: current portion of debt issuance costs (4,831 ) (2,980 ) Total long-term debt $ 1,373,555 $ 650,989 Overdraft Facility In 2019, the Company and OPAY entered in to a $140.0 million uncommitted overdraft facility with Bank of America, N.A. The overdraft facility bears interest at LIBOR plus 0.875% based on the Company’s average outstanding balance and the frequency in which overdrafts occur. The overdraft facility acts as a secured loan under the terms of the Credit Agreement to provide an additional funding mechanism for timing differences that can occur in the bill payment settlement process. Amounts outstanding on the overdraft facility are included in other current liabilities in the condensed consolidated balance sheet. As of September 30, 2019 , there was no amount outstanding on the overdraft facility. Other During the nine months ended September 30, 2019 , the Company financed certain multi-year license agreements for internal-use software for $10.4 million , with annual payments through April 2022. As of September 30, 2019 , $13.8 million is outstanding under these and other license agreements previously entered into, of which $6.0 million and $7.8 million is included in other current liabilities and other noncurrent liabilities, respectively, in the condensed consolidated balance sheet. Upon execution, these arrangements have been treated as a non-cash investment and financing activity for purposes of the condensed consolidated statements of cash flows. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Employee Stock Purchase Plan Shares issued under the 2017 Employee Stock Purchase Plan during the nine months ended September 30, 2019 and 2018 , totaled 92,765 and 112,549 , respectively. Stock Options A summary of stock option activity is as follows: Number of Shares Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value of In-the-Money Options ($) Outstanding as of December 31, 2018 4,864,836 $ 17.76 Exercised (419,928 ) 15.90 Forfeited (3,496 ) 17.89 Outstanding as of September 30, 2019 4,441,412 $ 17.93 5.52 $ 59,471,161 Exercisable as of September 30, 2019 3,897,260 $ 17.61 5.29 $ 53,440,113 The weighted average grant date fair value of stock options granted during the nine months ended September 30, 2018 , was $7.03 . The total intrinsic value of stock options exercised during the nine months ended September 30, 2019 and 2018 , was $6.9 million and $13.6 million , respectively. There were no stock options granted during the nine months ended September 30, 2019 . The fair value of options granted during the nine months ended September 30, 2018 , were estimated on the date of grant using the Black-Scholes option-pricing model, acceptable under ASC 718, Compensation – Stock Compensation (“ASC 718”), with the following weighted average assumptions: Nine Months Ended Expected life (years) 5.6 Risk-free interest rate 2.7 % Expected volatility 26.4 % Expected dividend yield — Expected volatilities are based on the Company’s historical common stock volatility, derived from historical stock price data for periods commensurate with the options’ expected life. The expected life of the options granted represents the period of time options are expected to be outstanding, based primarily on historical employee option exercise behavior. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero coupon bonds issued with a term equal to the expected life at the date of grant of the options. The expected dividend yield is zero, as the Company has historically paid no dividends and does not anticipate dividends to be paid in the future. Long-term Incentive Program Performance Share Awards A summary of nonvested long-term incentive program performance share awards (“LTIP performance shares”) is as follows: Number of Shares at Expected Attainment Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 540,697 $ 19.83 Forfeited (23,029 ) 20.12 Change in attainment 377,557 20.22 Nonvested as of September 30, 2019 895,225 $ 19.99 During the nine months ended September 30, 2019 , the Company revised the expected attainment rates for all outstanding LTIP performance shares due to changes in forecasted sales and operating income, resulting in additional stock-based compensation expense of approximately $6.0 million for the nine months ended September 30, 2019 . Restricted Share Awards A summary of nonvested restricted share awards (“RSAs”) is as follows: Number of Shares Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 213,337 $ 20.21 Vested (106,610 ) 20.17 Forfeited (10,934 ) 20.12 Nonvested as of September 30, 2019 95,793 $ 20.21 During the nine months ended September 30, 2019 , a total of 106,610 RSAs vested. The Company withheld 32,371 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. Total Shareholder Return Awards A summary of nonvested total shareholder return awards (“TSRs”) is as follows: Number of Shares Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 718,931 $ 29.25 Granted 436,674 47.90 Forfeited (27,567 ) 37.22 Nonvested as of September 30, 2019 1,128,038 $ 36.27 The fair value of TSRs granted during the nine months ended September 30, 2019 and 2018 , were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, using the following weighted average assumptions: Nine Months Ended 2019 2018 Expected life (years) 2.8 2.9 Risk-free interest rate 2.5 % 2.4 % Expected volatility 29.3 % 28.0 % Expected dividend yield — — Restricted Share Units A summary of nonvested restricted share unit awards (“RSUs”) is as follows: Number of Shares Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 651,045 $ 23.82 Granted 687,302 33.05 Vested (259,634 ) 24.16 Forfeited (36,588 ) 27.94 Nonvested as of September 30, 2019 1,042,125 $ 29.68 During the nine months ended September 30, 2019 , a total of 259,634 RSUs vested. The Company withheld 57,802 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. As of September 30, 2019 , there were unrecognized compensation costs of $23.9 million related to nonvested RSUs, $23.2 million related to nonvested TSRs, $2.4 million related to nonvested LTIP performance shares, $0.8 million related to nonvested RSAs, and $0.5 million related to nonvested stock options, which the Company expects to recognize over weighted average periods of 1.6 years , 1.9 years , 0.5 years , 0.4 years , and 0.5 years , respectively. The Company recorded stock-based compensation expense recognized under ASC 718 for the three months ended September 30, 2019 and 2018 , of $9.3 million and $6.5 million , respectively, with corresponding tax benefits of $1.5 million during each quarter. The Company recorded stock-based compensation expense recognized under ASC 718 for the nine months ended September 30, 2019 and 2018 , of $30.3 million and $20.6 million , respectively, with the corresponding tax benefits of $5.5 million and $3.6 million |
Software and Other Intangible A
Software and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Software and Other Intangible Assets | Software and Other Intangible Assets As of September 30, 2019 , software net book value totaled $235.9 million , net of $288.3 million of accumulated amortization. Included in this net book value amount is software for resale of $18.5 million and software acquired or developed for internal use of $217.4 million . As of December 31, 2018 , software net book value totaled $137.2 million , net of $252.2 million of accumulated amortization. Included in this net book value amount is software for resale of $27.5 million and software acquired or developed for internal use of $109.7 million . Amortization of software for resale is computed using the greater of (a) the ratio of current revenues to total current and future revenues expected to be derived from the software or (b) the straight-line method over an estimated useful life of generally three to ten years . Software for resale amortization expense recorded during the three months ended September 30, 2019 and 2018 , totaled $2.8 million and $2.6 million , respectively. Software for resale amortization expense recorded in the nine months ended September 30, 2019 and 2018 , totaled $8.8 million and $9.6 million , respectively. These software amortization expense amounts are reflected in cost of revenue in the condensed consolidated statements of operations. Amortization of software for internal use is computed using the straight-line method over an estimated useful life of generally three to ten years . Software for internal use amortization expense recorded during the three months ended September 30, 2019 and 2018 , totaled $15.7 million and $10.2 million , respectively. Software for internal use amortization expense recorded during the nine months ended September 30, 2019 and 2018 , totaled $39.4 million and $31.0 million , respectively. These software amortization expense amounts are reflected in depreciation and amortization in the condensed consolidated statements of operations. The carrying amount and accumulated amortization of the Company’s other intangible assets subject to amortization at each balance sheet date are as follows (in thousands): September 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance Customer relationships $ 502,682 $ (149,946 ) $ 352,736 $ 297,991 $ (131,187 ) $ 166,804 Trademarks and tradenames 27,052 (16,442 ) 10,610 16,348 (15,025 ) 1,323 Total other intangible assets $ 529,734 $ (166,388 ) $ 363,346 $ 314,339 $ (146,212 ) $ 168,127 Other intangible assets amortization expense during the three months ended September 30, 2019 and 2018 , totaled $9.4 million and $4.7 million , respectively. Other intangible assets amortization expense for the nine months ended September 30, 2019 and 2018 , totaled $22.5 million and $14.4 million , respectively. Based on capitalized intangible assets as of September 30, 2019 , estimated amortization expense amounts in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Software Other Intangible Assets Remainder of 2019 $ 17,416 $ 9,304 2020 64,756 36,783 2021 51,549 36,308 2022 33,878 36,166 2023 23,374 35,876 Thereafter 44,963 208,909 Total $ 235,936 $ 363,346 |
Corporate Restructuring and Oth
Corporate Restructuring and Other Organizational Changes | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Corporate Restructuring and Other Organizational Changes | Corporate Restructuring and Other Organizational Changes A summary of the facility closures liability is as follows (in thousands): Balance, December 31, 2018 $ 4,127 Amounts paid during the period (1,167 ) Foreign currency translation adjustments (42 ) Balance, September 30, 2019 $ 2,918 Of the $2.9 million restructuring liability, $1.4 million and $1.5 million are recorded in other current liabilities and operating lease liabilities, respectively, in the condensed consolidated balance sheet as of September 30, 2019 . |
Common Stock and Treasury Stock
Common Stock and Treasury Stock | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Common Stock and Treasury Stock | Common Stock and Treasury Stock In 2005, the board approved a stock repurchase program authorizing the Company, as market and business conditions warrant, to acquire its common stock and periodically authorize additional funds for the program. In February 2018, the board approved the repurchase of the Company's common stock for up to $200.0 million , in place of the remaining purchase amounts previously authorized. The Company repurchased 1,228,102 shares for $35.6 million under the program during the nine months ended September 30, 2019 . Under the program to date, the Company has repurchased 45,357,495 shares for approximately $583.4 million . As of September 30, 2019 , the maximum remaining amount authorized for purchase under the stock repurchase program was $141.0 million . |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is computed in accordance with ASC 260, Earnings Per Share , based on weighted average outstanding common shares. Diluted earnings (loss) per share is computed based on basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and RSUs. The following table reconciles the weighted average share amounts used to compute both basic and diluted earnings (loss) per share (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Weighted average shares outstanding: Basic weighted average shares outstanding 116,169 115,889 116,337 115,615 Add: Dilutive effect of stock options and RSUs 2,138 1,603 2,123 — Diluted weighted average shares outstanding 118,307 117,492 118,460 115,615 The diluted earnings per share computation excludes 2.1 million and 1.2 million options to purchase shares, RSUs, and contingently issuable shares during the three months ended September 30, 2019 and 2018 , respectively, as their effect would be anti-dilutive. The diluted earnings (loss) per share computation excludes 2.1 million and 8.0 million options to purchase shares, RSAs, RSUs, and contingently issuable shares during the nine months ended September 30, 2019 and 2018 , respectively, as their effect would be anti-dilutive. Common stock outstanding as of September 30, 2019 , and December 31, 2018 , was 115,566,482 and 116,123,361 , respectively. |
Other, Net
Other, Net | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other, Net | Other, Net Other, net is comprised of foreign currency transaction losses of $2.4 million and $1.3 million for the three months ended September 30, 2019 and 2018 , respectively. Other, net is comprised of foreign currency transaction losses of $2.9 million and $3.0 million for the nine months ended September 30, 2019 and 2018 , respectively. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company reports financial performance based on its segments, ACI On Premise and ACI On Demand, and analyzes Segment Adjusted EBITDA as a measure of segment profitability. The Company’s Chief Executive Officer is also the chief operating decision maker (“CODM”). The CODM, together with other senior management personnel, focus their review on consolidated financial information and the allocation of resources based on operating results, including revenues and Segment Adjusted EBITDA, for each segment, separate from Corporate operations. ACI On Premise serves customers who manage their software on site. These on-premise customers use the Company’s software to develop sophisticated solutions, which are often part of a larger system located and managed at the customer specified site. These customers require a level of control and flexibility that ACI On Premise solutions can offer, and they have the resources and expertise to take a lead role in managing these solutions. ACI On Demand serves the needs of banks, merchants and corporates who use payments to facilitate their core business. These on-demand solutions are maintained and delivered through the cloud via our global data centers and are available in either a single-tenant environment for SaaS offerings, or in a multi-tenant environment for PaaS offerings. Revenue is attributed to the reportable segments based upon the product sold and mechanism for delivery to the customer. Expenses are attributed to the reportable segments in one of three methods: (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual products, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities as well as information technology and facilities related expense for which multiple segments benefit. The Company also allocates certain depreciation costs to the segments. Segment Adjusted EBITDA is the measure reported to the CODM for purposes of making decisions on allocating resources and assessing the performance of the Company’s segments, and, therefore, Segment Adjusted EBITDA is presented in conformity with ASC 280, Segment Reporting. Segment Adjusted EBITDA is defined as earnings (loss) from operations before interest, income tax expense (benefit), depreciation and amortization (“EBITDA”) adjusted to exclude stock-based compensation, and net other income (expense). Corporate and unallocated expenses consist of the corporate overhead costs that are not allocated to reportable segments. These overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity, and other costs that are not considered when management evaluates segment performance. The following is selected financial data for the Company’s reportable segments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenue ACI On Premise $ 161,949 $ 141,006 $ 383,075 $ 367,431 ACI On Demand 192,952 104,519 475,299 322,399 Total revenue $ 354,901 $ 245,525 $ 858,374 $ 689,830 Segment Adjusted EBITDA ACI On Premise $ 99,553 $ 77,819 $ 184,890 $ 171,477 ACI On Demand 18,561 3,270 35,639 (4,327 ) Depreciation and amortization (33,913 ) (23,545 ) (88,543 ) (72,889 ) Stock-based compensation expense (9,371 ) (6,575 ) (30,328 ) (20,642 ) Corporate and unallocated expenses (19,512 ) (22,610 ) (80,315 ) (64,122 ) Interest, net (15,999 ) (9,810 ) (36,906 ) (23,406 ) Other, net (2,369 ) (1,304 ) (2,879 ) (3,036 ) Income (loss) before income taxes $ 36,950 $ 17,245 $ (18,442 ) $ (16,945 ) Depreciation and amortization ACI On Premise $ 2,963 $ 2,772 $ 9,012 $ 8,596 ACI On Demand 9,059 7,906 25,110 23,468 Corporate 21,891 12,867 54,421 40,825 Total depreciation and amortization $ 33,913 $ 23,545 $ 88,543 $ 72,889 Stock-based compensation expense ACI On Premise $ 2,227 $ 1,806 $ 6,234 $ 5,111 ACI On Demand 2,389 1,802 6,554 5,099 Corporate 4,755 2,967 17,540 10,432 Total stock-based compensation expense $ 9,371 $ 6,575 $ 30,328 $ 20,642 Assets are not allocated to segments, and the Company’s CODM does not evaluate operating segments using discrete asset information. The following is revenue by primary geographic market and primary solution category for the Company’s reportable segments (in thousands): Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 ACI ACI Total ACI ACI Total Primary Geographic Markets Americas - United States $ 53,986 $ 176,172 $ 230,158 $ 26,022 $ 88,401 $ 114,423 Americas - Other 22,879 2,268 25,147 16,709 2,409 19,118 EMEA 72,662 12,191 84,853 80,738 12,385 93,123 Asia Pacific 12,422 2,321 14,743 17,537 1,324 18,861 Total $ 161,949 $ 192,952 $ 354,901 $ 141,006 $ 104,519 $ 245,525 Primary Solution Categories Bill Payments $ — $ 154,285 $ 154,285 $ — $ 64,134 $ 64,134 Digital Channels 6,791 8,480 15,271 7,499 9,327 16,826 Merchant Payments 4,739 18,534 23,273 6,272 19,481 25,753 Payments Intelligence 13,623 8,759 22,382 7,203 9,639 16,842 Real-Time Payments 19,191 1,032 20,223 23,704 540 24,244 Retail Payments 117,605 1,862 119,467 96,328 1,398 97,726 Total $ 161,949 $ 192,952 $ 354,901 $ 141,006 $ 104,519 $ 245,525 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 ACI ACI Total ACI ACI Total Primary Geographic Markets Americas - United States $ 116,104 $ 425,033 $ 541,137 $ 82,280 $ 275,171 $ 357,451 Americas - Other 46,237 7,118 53,355 45,269 7,077 52,346 EMEA 167,268 36,751 204,019 181,913 36,819 218,732 Asia Pacific 53,466 6,397 59,863 57,969 3,332 61,301 Total $ 383,075 $ 475,299 $ 858,374 $ 367,431 $ 322,399 $ 689,830 Primary Solution Categories Bill Payments $ — $ 348,592 $ 348,592 $ — $ 204,673 $ 204,673 Digital Channels 24,960 36,280 61,240 27,779 30,281 58,060 Merchant Payments 17,398 55,815 73,213 16,655 48,439 65,094 Payments Intelligence 27,164 26,614 53,778 25,532 30,508 56,040 Real-Time Payments 55,714 2,557 58,271 53,086 1,474 54,560 Retail Payments 257,839 5,441 263,280 244,379 7,024 251,403 Total $ 383,075 $ 475,299 $ 858,374 $ 367,431 $ 322,399 $ 689,830 The following is the Company’s long-lived assets by geographic location (in thousands): September 30, December 31, Long-lived Assets United States $ 1,527,747 $ 811,435 Other 745,149 717,495 Total $ 2,272,896 $ 1,528,930 No single customer accounted for more than 10% of the Company’s consolidated revenues during the three and nine months ended September 30, 2019 and 2018 . Aggregate revenues attributable to our customers in Canada accounted for 11.8% of the Company's consolidated revenues during the three months ended September 30, 2018. No other country outside the United States and Canada accounted for more than 10% of the Company’s consolidated revenues during the three months ended September 30, 2019 and 2018 . No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the nine months ended September 30, 2019 and 2018 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three and nine months ended September 30, 2019 , was 14% and 163% , respectively. The Company reported a tax charge on pretax income for the three months ended September 30, 2019, and a tax benefit on pretax loss for the nine months ended September 30, 2019 . The earnings of the Company’s foreign entities for the three and nine months ended September 30, 2019 , were $16.6 million and $21.5 million , respectively. The effective tax rate for the three months ended September 30, 2019, was positively impacted by the release of an uncertain tax position due to the statute of limitation expiration. The effective tax rate for the nine months ended September 30, 2019 , was positively impacted by state income tax benefits on a domestic loss. In addition, the Company released a majority of its valuation allowance established against its U.S. foreign tax credit deferred tax asset, resulting in a non-cash benefit to income tax expense of approximately $18.5 million . The Company released the valuation allowance following the acquisition of Speedpay and has determined that it is more likely than not that it will be able to utilize the foreign tax credits in future years due to additional income provided by Speedpay. The effective tax rate for the three months ended September 30, 2018 , was 12% . The Company reported a tax charge for the nine months ended September 30, 2018, while reporting a pretax loss for the same period, resulting in an effective tax rate of (11)% . The earnings of the Company’s foreign entities for the three and nine months ended September 30, 2018 , were $27.3 million and $32.7 million , respectively. The effective tax rates for the three and nine months ended September 30, 2018 , were impacted by profits in certain foreign jurisdictions taxed at lower rates and equity compensation tax benefits, partially offset by lower domestic tax benefits resulting from the current GILTI tax and Base Erosion and Anti-Abuse Tax ("BEAT") charges. The Company’s effective tax rate could fluctuate on a quarterly basis due to the occurrence of significant and unusual or infrequent items, such as vesting of stock-based compensation or foreign currency gains and losses. The Company’s effective tax rate could also fluctuate due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations, accounting principles, or interpretations thereof. In addition, the Company is occasionally subject to examination of its income tax returns by tax authorities in the jurisdictions it operates. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. As of September 30, 2019 , and December 31, 2018 , the amount of unrecognized tax benefits for uncertain tax positions was $24.4 million and $28.4 million , respectively, excluding related liabilities for interest and penalties of $1.2 million as of September 30, 2019 and December 31, 2018 . The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $0.3 million , due to the settlement of various audits and the expiration of statutes of limitation. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices and data centers. Excluding office leases, leases with an initial term of 12 months or less that do not include an option to purchase the underlying asset are not recorded on the condensed consolidated balance sheet and are expensed on a straight-line basis over the lease term. The Company’s leases typically include certain renewal options to extend the leases for up to 25 years , some of which include options to terminate the leases within one year. The exercise of lease renewal options is at the Company’s sole discretion. The Company combines lease and non-lease components of its leases and currently has no leases with options to purchase the leased property. Payments of maintenance and property tax costs paid by the Company are accounted for as variable lease cost, which are expensed as incurred. The components of lease cost are as follows (in thousands): Three Months Ended Nine Months Ended Operating lease cost $ 4,491 $ 12,814 Variable lease cost 966 2,712 Sublease income (105 ) (385 ) Total lease cost $ 5,352 $ 15,141 Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,622 $ 14,882 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 2,718 $ 8,920 Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate): September 30, Assets: Operating lease right-of-use assets $ 60,280 Liabilities: Other current liabilities $ 15,112 Operating lease liabilities 48,281 Total operating lease liabilities $ 63,393 Weighted average remaining operating lease term (years) 6.59 Weighted average operating lease discount rate 4.03 % The Company uses its incremental borrowing rate as the discount rate. As the Company enters into operating leases in multiple jurisdictions and denominated in currencies other than the U.S. dollar, judgment is used to determine the Company’s incremental borrowing rate including (1) conversion of its subordinated borrowing rate (using published yield curves) to an unsubordinated and collateralized rate, (2) adjusting the rate to align with the term of each lease, and (3) adjusting the rate to incorporate the effects of the currency in which the lease is denominated. Maturities on lease liabilities as of September 30, 2019 , are as follows (in thousands): Fiscal Year Ending December 31, Remainder of 2019 $ 4,060 2020 17,153 2021 12,565 2022 9,649 2023 7,455 Thereafter 21,351 Total lease payments 72,233 Less: imputed interest 8,840 Total lease liability $ 63,393 Future payments under operating lease agreements accounted for under ASC 840, Leases, as of December 31, 2018, were as follows (in thousands): Fiscal Year Ending December 31, 2019 $ 16,925 2020 14,212 2021 10,538 2022 8,178 2023 6,529 Thereafter 21,196 Total minimum lease payments $ 77,578 As of September 30, 2019 , the Company has additional operating leases for office facilities that have not yet commenced with minimum lease payments of $2.8 million . These operating leases will commence between fiscal year 2019 and 2020 with lease terms of one to seven years . |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Settlement Assets and Liabilities | Settlement Assets and Liabilities Individuals and businesses settle their obligations to the Company’s various Biller clients using credit or debit cards or via automated clearing house (“ACH”) payments. The Company creates a receivable for the amount due from the credit or debit card processor and an offsetting payable to the client. Upon confirmation that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may (1) receive the funds into bank accounts controlled by and in the Company’s name that are not disbursed to its clients by the end of the day, resulting in a settlement deposit on the Company’s books and (2) disburse funds to its clients in advance of receiving funds from the credit or debit card processor, resulting in a net settlement receivable position. |
Off Balance Sheet Settlement Accounts | Off Balance Sheet Settlement Accounts The Company also enters into agreements with certain Biller clients to process payment funds on their behalf. When an ACH or automated teller machine network payment transaction is processed, a transaction is initiated to withdraw funds from the designated source account and deposit them into a settlement account, which is a trust account maintained for the benefit of the Company’s clients. A simultaneous transaction is initiated to transfer funds from the settlement account to the intended destination account. These “back to back” transactions are designed to settle at the same time, usually overnight, such that the Company receives the funds from the source at the same time as it sends the funds to their destination. However, due to the transactions being with |
Fair Value | Fair Value |
Goodwill | Goodwill In accordance with the Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other, the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level and has identified its operating segments, ACI On Demand and ACI On Premise, as its reporting units. Changes in the carrying amount of goodwill attributable to each reporting unit during the nine months ended September 30, 2019 , were as follows (in thousands): ACI On Demand ACI On Premise Total Gross Balance, prior to December 31, 2018 $ 183,783 $ 773,340 $ 957,123 Total impairment prior to December 31, 2018 — (47,432 ) (47,432 ) Balance, December 31, 2018 183,783 725,908 909,691 Goodwill from acquisitions (1) 368,574 — 368,574 Balance, September 30, 2019 $ 552,357 $ 725,908 $ 1,278,265 (1) Goodwill from acquisitions relates to the goodwill recorded for the acquisition of E Commerce Group Products, Inc. ("ECG"), along with ECG's subsidiary, Speedpay, Inc. (collectively referred to as "Speedpay") and Walletron, Inc. ("Walletron"), as discussed in Note 3, Acquisition . The purchase price allocations for Speedpay and Walletron are preliminary as of September 30, 2019 , and are subject to future changes during the maximum one-year measurement period. Recoverability of goodwill is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in impairment testing in the absence of available transactional market evidence to determine the fair value. The calculated fair value was substantially in excess of the current carrying value for all reporting units based upon the October 1, 2018, annual impairment test and there have been no indications of impairment in the subsequent periods. |
Recent Accounting Standards | New Accounting Standards Recently Adopted In July 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-07, Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates , which clarifies or improves the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC 's regulations. ASU 2019-07 was effective upon issuance and did not have a material impact on the condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-2, Leases (codified as “ASC 842”). ASC 842 requires lessees to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases unless, as a policy election, a lessee elects not to apply ASC 842 to short-term leases. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. The Company adopted ASC 842 on January 1, 2019 (the effective date), using the optional transition method to not apply the new lease standard in the comparative periods presented and elected the “practical expedient package”, which permits the Company to not reassess prior conclusions about lease identification, lease classification, and initial direct costs. ASC 842 also provides practical expedients for the Company’s ongoing accounting including the combination of lease and non-lease components into a single lease component which the Company has elected to apply to its leases. As of January 1, 2019, the Company recognized ROU assets and operating lease liabilities of $63.3 million and $68.6 million , respectively. Refer to Note 13 , Leases , for further details. In February 2018, the FASB issued ASU 2018-2, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU provides an option to reclassify stranded tax effects within accumulated other comprehensive income (“AOCI”) to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the 2017 U.S. Tax Cuts and Jobs Act (or portion thereof) is recorded. This ASU requires disclosure of a description of the accounting policy for releasing income tax effects from AOCI; whether election is made to reclassify the stranded income tax effects from the 2017 U.S. Tax Cuts and Jobs Act; and information about the income tax effects that are reclassified. The Company adopted ASU 2018-2 as of January 1, 2019. The adoption of ASU 2018-2 did not have an impact on the condensed consolidated balance sheet, results of operations, and statement of cash flows. Recently Issued Accounting Standards Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, and subsequent amendments to the guidance, ASU 2018-19 in November 2018, ASU 2019-04 in April 2019, and ASU 2019-05 in May 2019 . This ASU provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in ASU 2016-13 replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company will be required to use a forward-looking expected credit loss model for accounts receivables. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019. The Company has established a project team to assess implementing changes to its processes and controls in conjunction with a comprehensive review of its financial instruments. The Company is currently assessing the impact the adoption of ASU 2016-13 will have on its condensed consolidated balance sheet, results of operations, and statement of cash flows. |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Other Current Liabilities | The components of other current liabilities are included in the following table (in thousands): September 30, December 31, Operating lease liabilities $ 15,112 $ — Vendor financed licenses 8,217 3,551 Royalties payable 6,643 11,318 Accrued interest 3,606 8,407 Other 36,101 38,412 Total other current liabilities $ 69,679 $ 61,688 |
Summary of Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill attributable to each reporting unit during the nine months ended September 30, 2019 , were as follows (in thousands): ACI On Demand ACI On Premise Total Gross Balance, prior to December 31, 2018 $ 183,783 $ 773,340 $ 957,123 Total impairment prior to December 31, 2018 — (47,432 ) (47,432 ) Balance, December 31, 2018 183,783 725,908 909,691 Goodwill from acquisitions (1) 368,574 — 368,574 Balance, September 30, 2019 $ 552,357 $ 725,908 $ 1,278,265 (1) Goodwill from acquisitions relates to the goodwill recorded for the acquisition of E Commerce Group Products, Inc. ("ECG"), along with ECG's subsidiary, Speedpay, Inc. (collectively referred to as "Speedpay") and Walletron, Inc. ("Walletron"), as discussed in Note 3, Acquisition . The purchase price allocations for Speedpay and Walletron are preliminary as of September 30, 2019 , and are subject to future changes during the maximum one-year measurement period. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Total Receivables, Net | Total receivables, net is comprised of the following (in thousands): September 30, December 31, Billed receivables $ 187,080 $ 239,275 Allowance for doubtful accounts (3,790 ) (3,912 ) Billed receivables, net 183,290 235,363 Accrued receivables 365,478 336,858 Significant financing component (33,109 ) (35,029 ) Total accrued receivables, net 332,369 301,829 Less: current accrued receivables 152,668 123,053 Less: current significant financing component (10,625 ) (10,234 ) Total long-term accrued receivables, net 190,326 189,010 Total receivables, net $ 515,659 $ 537,192 |
Summary of Changes in Deferred Revenue | Changes in deferred revenue were as follows (in thousands): Balance, December 31, 2018 $ 156,135 Deferral of revenue 121,310 Recognition of deferred revenue (139,070 ) Foreign currency translation (1,154 ) Balance, September 30, 2019 $ 137,221 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | In connection with the acquisition, the Company recorded the following amounts based upon its preliminary purchase price allocation as of September 30, 2019 , which are subject to completion of the valuation and other analyses (in thousands, except weighted average useful lives): Amount Weighted Average Useful Lives Current assets: Cash and cash equivalents $ 135 Receivables, net of allowances 18,358 Settlement assets 239,604 Prepaid expenses 317 Other current assets 19,585 Total current assets acquired 277,999 Noncurrent assets: Goodwill 365,928 Software 113,600 7 years Customer relationships 208,500 15 years Trademarks 10,900 5 years Other noncurrent assets 3,745 Total assets acquired 980,672 Current liabilities: Accounts payable 6,743 Settlement liabilities 212,892 Employee compensation 1,959 Other current liabilities 3,802 Total current liabilities acquired 225,396 Noncurrent liabilities: Other noncurrent liabilities 1,219 Total liabilities acquired 226,615 Net assets acquired $ 754,057 |
Summary of Unaudited Summarized Pro Forma Financial Information | The following is the unaudited summarized pro forma financial information for the periods presented (in thousands, except per share data): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Pro forma revenue $ 354,901 $ 330,983 $ 983,037 $ 957,673 Pro forma net income 32,513 20,379 26,517 3,418 Pro forma income per share: Basic $ 0.28 $ 0.18 $ 0.23 $ 0.03 Diluted 0.27 0.17 0.22 0.03 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities on Debt Outstanding | Maturities on debt outstanding as of September 30, 2019 , are as follows (in thousands): Fiscal Year Ending December 31, Remainder of 2019 $ 9,738 2020 38,950 2021 38,950 2022 50,431 2023 69,906 Thereafter 1,222,823 Total $ 1,430,798 |
Summary of Total Debt | Total debt is comprised of the following (in thousands): September 30, December 31, Term loans $ 765,798 $ 284,959 Revolving credit facility 265,000 — 5.750% Senior notes, due August 2026 400,000 400,000 Debt issuance costs (23,124 ) (13,203 ) Total debt 1,407,674 671,756 Less: current portion of term loans 38,950 23,747 Less: current portion of debt issuance costs (4,831 ) (2,980 ) Total long-term debt $ 1,373,555 $ 650,989 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Option Activity | A summary of stock option activity is as follows: Number of Shares Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value of In-the-Money Options ($) Outstanding as of December 31, 2018 4,864,836 $ 17.76 Exercised (419,928 ) 15.90 Forfeited (3,496 ) 17.89 Outstanding as of September 30, 2019 4,441,412 $ 17.93 5.52 $ 59,471,161 Exercisable as of September 30, 2019 3,897,260 $ 17.61 5.29 $ 53,440,113 |
Black-Scholes Option-Pricing Model | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Grant Date Fair Value Weighted-Average Assumptions, Options | The fair value of options granted during the nine months ended September 30, 2018 , were estimated on the date of grant using the Black-Scholes option-pricing model, acceptable under ASC 718, Compensation – Stock Compensation (“ASC 718”), with the following weighted average assumptions: Nine Months Ended Expected life (years) 5.6 Risk-free interest rate 2.7 % Expected volatility 26.4 % Expected dividend yield — |
LTIP Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Nonvested Performance Award Activity | A summary of nonvested long-term incentive program performance share awards (“LTIP performance shares”) is as follows: Number of Shares at Expected Attainment Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 540,697 $ 19.83 Forfeited (23,029 ) 20.12 Change in attainment 377,557 20.22 Nonvested as of September 30, 2019 895,225 $ 19.99 |
Restricted Share Awards (RSAs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Nonvested Restricted Share Award Activity | A summary of nonvested restricted share awards (“RSAs”) is as follows: Number of Shares Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 213,337 $ 20.21 Vested (106,610 ) 20.17 Forfeited (10,934 ) 20.12 Nonvested as of September 30, 2019 95,793 $ 20.21 |
Total Shareholder Return Awards (TSRs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Nonvested Performance Award Activity | A summary of nonvested total shareholder return awards (“TSRs”) is as follows: Number of Shares Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 718,931 $ 29.25 Granted 436,674 47.90 Forfeited (27,567 ) 37.22 Nonvested as of September 30, 2019 1,128,038 $ 36.27 |
Total Shareholder Return Awards (TSRs) | Monte Carlo Simulation Model | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Grant Date Fair Value Weighted-Average Assumptions, Awards Other Than Options | The fair value of TSRs granted during the nine months ended September 30, 2019 and 2018 , were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, using the following weighted average assumptions: Nine Months Ended 2019 2018 Expected life (years) 2.8 2.9 Risk-free interest rate 2.5 % 2.4 % Expected volatility 29.3 % 28.0 % Expected dividend yield — — |
Restricted Share Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Nonvested Restricted Share Unit Activity | A summary of nonvested restricted share unit awards (“RSUs”) is as follows: Number of Shares Weighted Average Grant Date Fair Value Nonvested as of December 31, 2018 651,045 $ 23.82 Granted 687,302 33.05 Vested (259,634 ) 24.16 Forfeited (36,588 ) 27.94 Nonvested as of September 30, 2019 1,042,125 $ 29.68 |
Software and Other Intangible_2
Software and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Carrying Amount and Accumulated Amortization of Other Intangible Assets | The carrying amount and accumulated amortization of the Company’s other intangible assets subject to amortization at each balance sheet date are as follows (in thousands): September 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance Customer relationships $ 502,682 $ (149,946 ) $ 352,736 $ 297,991 $ (131,187 ) $ 166,804 Trademarks and tradenames 27,052 (16,442 ) 10,610 16,348 (15,025 ) 1,323 Total other intangible assets $ 529,734 $ (166,388 ) $ 363,346 $ 314,339 $ (146,212 ) $ 168,127 |
Schedule of Estimated Intangible Asset Amortization Expense in Future Fiscal Years | Based on capitalized intangible assets as of September 30, 2019 , estimated amortization expense amounts in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Software Other Intangible Assets Remainder of 2019 $ 17,416 $ 9,304 2020 64,756 36,783 2021 51,549 36,308 2022 33,878 36,166 2023 23,374 35,876 Thereafter 44,963 208,909 Total $ 235,936 $ 363,346 |
Corporate Restructuring and O_2
Corporate Restructuring and Other Organizational Changes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Facility Closures Liability | A summary of the facility closures liability is as follows (in thousands): Balance, December 31, 2018 $ 4,127 Amounts paid during the period (1,167 ) Foreign currency translation adjustments (42 ) Balance, September 30, 2019 $ 2,918 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Weighted Average Share Amounts Used to Compute Both Basic and Diluted Loss Per Share | The following table reconciles the weighted average share amounts used to compute both basic and diluted earnings (loss) per share (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Weighted average shares outstanding: Basic weighted average shares outstanding 116,169 115,889 116,337 115,615 Add: Dilutive effect of stock options and RSUs 2,138 1,603 2,123 — Diluted weighted average shares outstanding 118,307 117,492 118,460 115,615 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Data by Reportable Segment | The following is selected financial data for the Company’s reportable segments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenue ACI On Premise $ 161,949 $ 141,006 $ 383,075 $ 367,431 ACI On Demand 192,952 104,519 475,299 322,399 Total revenue $ 354,901 $ 245,525 $ 858,374 $ 689,830 Segment Adjusted EBITDA ACI On Premise $ 99,553 $ 77,819 $ 184,890 $ 171,477 ACI On Demand 18,561 3,270 35,639 (4,327 ) Depreciation and amortization (33,913 ) (23,545 ) (88,543 ) (72,889 ) Stock-based compensation expense (9,371 ) (6,575 ) (30,328 ) (20,642 ) Corporate and unallocated expenses (19,512 ) (22,610 ) (80,315 ) (64,122 ) Interest, net (15,999 ) (9,810 ) (36,906 ) (23,406 ) Other, net (2,369 ) (1,304 ) (2,879 ) (3,036 ) Income (loss) before income taxes $ 36,950 $ 17,245 $ (18,442 ) $ (16,945 ) Depreciation and amortization ACI On Premise $ 2,963 $ 2,772 $ 9,012 $ 8,596 ACI On Demand 9,059 7,906 25,110 23,468 Corporate 21,891 12,867 54,421 40,825 Total depreciation and amortization $ 33,913 $ 23,545 $ 88,543 $ 72,889 Stock-based compensation expense ACI On Premise $ 2,227 $ 1,806 $ 6,234 $ 5,111 ACI On Demand 2,389 1,802 6,554 5,099 Corporate 4,755 2,967 17,540 10,432 Total stock-based compensation expense $ 9,371 $ 6,575 $ 30,328 $ 20,642 |
Schedule of Revenue by Primary Geographic Markets and Primary Solution Categories | The following is revenue by primary geographic market and primary solution category for the Company’s reportable segments (in thousands): Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 ACI ACI Total ACI ACI Total Primary Geographic Markets Americas - United States $ 53,986 $ 176,172 $ 230,158 $ 26,022 $ 88,401 $ 114,423 Americas - Other 22,879 2,268 25,147 16,709 2,409 19,118 EMEA 72,662 12,191 84,853 80,738 12,385 93,123 Asia Pacific 12,422 2,321 14,743 17,537 1,324 18,861 Total $ 161,949 $ 192,952 $ 354,901 $ 141,006 $ 104,519 $ 245,525 Primary Solution Categories Bill Payments $ — $ 154,285 $ 154,285 $ — $ 64,134 $ 64,134 Digital Channels 6,791 8,480 15,271 7,499 9,327 16,826 Merchant Payments 4,739 18,534 23,273 6,272 19,481 25,753 Payments Intelligence 13,623 8,759 22,382 7,203 9,639 16,842 Real-Time Payments 19,191 1,032 20,223 23,704 540 24,244 Retail Payments 117,605 1,862 119,467 96,328 1,398 97,726 Total $ 161,949 $ 192,952 $ 354,901 $ 141,006 $ 104,519 $ 245,525 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 ACI ACI Total ACI ACI Total Primary Geographic Markets Americas - United States $ 116,104 $ 425,033 $ 541,137 $ 82,280 $ 275,171 $ 357,451 Americas - Other 46,237 7,118 53,355 45,269 7,077 52,346 EMEA 167,268 36,751 204,019 181,913 36,819 218,732 Asia Pacific 53,466 6,397 59,863 57,969 3,332 61,301 Total $ 383,075 $ 475,299 $ 858,374 $ 367,431 $ 322,399 $ 689,830 Primary Solution Categories Bill Payments $ — $ 348,592 $ 348,592 $ — $ 204,673 $ 204,673 Digital Channels 24,960 36,280 61,240 27,779 30,281 58,060 Merchant Payments 17,398 55,815 73,213 16,655 48,439 65,094 Payments Intelligence 27,164 26,614 53,778 25,532 30,508 56,040 Real-Time Payments 55,714 2,557 58,271 53,086 1,474 54,560 Retail Payments 257,839 5,441 263,280 244,379 7,024 251,403 Total $ 383,075 $ 475,299 $ 858,374 $ 367,431 $ 322,399 $ 689,830 |
Schedule of Long-lived Assets by Geographic Location | The following is the Company’s long-lived assets by geographic location (in thousands): September 30, December 31, Long-lived Assets United States $ 1,527,747 $ 811,435 Other 745,149 717,495 Total $ 2,272,896 $ 1,528,930 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of Components of Lease Cost | The components of lease cost are as follows (in thousands): Three Months Ended Nine Months Ended Operating lease cost $ 4,491 $ 12,814 Variable lease cost 966 2,712 Sublease income (105 ) (385 ) Total lease cost $ 5,352 $ 15,141 |
Summary of Supplemental Cash Flow Information | Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,622 $ 14,882 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 2,718 $ 8,920 |
Summary of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate): September 30, Assets: Operating lease right-of-use assets $ 60,280 Liabilities: Other current liabilities $ 15,112 Operating lease liabilities 48,281 Total operating lease liabilities $ 63,393 Weighted average remaining operating lease term (years) 6.59 Weighted average operating lease discount rate 4.03 % |
Schedule of Maturities on Lease Liabilities | Maturities on lease liabilities as of September 30, 2019 , are as follows (in thousands): Fiscal Year Ending December 31, Remainder of 2019 $ 4,060 2020 17,153 2021 12,565 2022 9,649 2023 7,455 Thereafter 21,351 Total lease payments 72,233 Less: imputed interest 8,840 Total lease liability $ 63,393 |
Schedule of Future Payments Under Operating Lease Agreements, ASC 840 | Future payments under operating lease agreements accounted for under ASC 840, Leases, as of December 31, 2018, were as follows (in thousands): Fiscal Year Ending December 31, 2019 $ 16,925 2020 14,212 2021 10,538 2022 8,178 2023 6,529 Thereafter 21,196 Total minimum lease payments $ 77,578 |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statements - Summary of Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other Current Liabilities | ||
Operating lease liabilities | $ 15,112 | $ 0 |
Vendor financed licenses | 8,217 | 3,551 |
Royalties payable | 6,643 | 11,318 |
Accrued interest | 3,606 | 8,407 |
Other | 36,101 | 38,412 |
Total other current liabilities | $ 69,679 | $ 61,688 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statements - Summary of Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Goodwill, gross amount prior to period | $ 957,123 | |
Goodwill, total impairment prior to period | (47,432) | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 909,691 | |
Goodwill from acquisitions | 368,574 | |
Goodwill, end of period | 1,278,265 | |
ACI On Demand | ||
Goodwill [Line Items] | ||
Goodwill, gross amount prior to period | 183,783 | |
Goodwill, total impairment prior to period | 0 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 183,783 | |
Goodwill from acquisitions | 368,574 | |
Goodwill, end of period | 552,357 | |
ACI On Premise | ||
Goodwill [Line Items] | ||
Goodwill, gross amount prior to period | 773,340 | |
Goodwill, total impairment prior to period | $ (47,432) | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 725,908 | |
Goodwill from acquisitions | 0 | |
Goodwill, end of period | $ 725,908 |
Condensed Consolidated Financ_6
Condensed Consolidated Financial Statements - Additional Information (Details) - USD ($) $ in Thousands | Jul. 23, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||||
Other current assets | $ 31,715 | $ 14,260 | ||
Other current liabilities | 69,679 | 61,688 | ||
Settlement assets | 498,101 | 32,256 | ||
Settlement liabilities | 477,064 | 31,605 | ||
Amount of off balance sheet settlement funds | 326,100 | 256,500 | ||
Right-of-use assets | 60,280 | 0 | ||
Operating lease liability | $ 63,393 | |||
Accounting Standards Update 2016-02 | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Right-of-use assets | $ 63,300 | |||
Operating lease liability | $ 68,600 | |||
India payment technology and services company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Payments to acquire investment interest | $ 18,300 | |||
Percentage of voting interests acquired | 30.00% | |||
Equity method investment, amount recorded | $ 18,500 | |||
Level 2 | Senior Notes | 5.750% Senior Notes due 2026 | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate (percentage) | 5.75% | |||
Fair value of long-term debt | $ 426,000 | 395,000 | ||
Prior Period Adjustment | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Other current assets | (32,300) | |||
Other current liabilities | (31,600) | |||
Settlement assets | 32,300 | |||
Settlement liabilities | $ 31,600 |
Revenue - Summary of Total Rece
Revenue - Summary of Total Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Billed receivables | $ 187,080 | $ 239,275 |
Allowance for doubtful accounts | (3,790) | (3,912) |
Billed receivables, net | 183,290 | 235,363 |
Accrued receivables | 365,478 | 336,858 |
Significant financing component | (33,109) | (35,029) |
Total accrued receivables, net | 332,369 | 301,829 |
Less: current accrued receivables | 152,668 | 123,053 |
Less: current significant financing component | (10,625) | (10,234) |
Total long-term accrued receivables, net | 190,326 | 189,010 |
Total receivables, net | $ 515,659 | $ 537,192 |
Revenue - Summary of Changes in
Revenue - Summary of Changes in Deferred Revenue (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Deferred revenue, beginning balance | $ 156,135 |
Deferral of revenue | 121,310 |
Recognition of deferred revenue | (139,070) |
Foreign currency translation | (1,154) |
Deferred revenue, ending balance | $ 137,221 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue allocated to remaining performance obligations | $ 618.5 |
Revenue allocated to remaining performance obligations, percentage to be recognized over the next 12 months | 46.00% |
Acquisition - Schedule of Recog
Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Noncurrent assets: | ||
Goodwill | $ 1,278,265 | $ 909,691 |
SpeedPay | ||
Current assets: | ||
Cash and cash equivalents | 135 | |
Receivables, net of allowances | 18,358 | |
Settlement assets | 239,604 | |
Prepaid expenses | 317 | |
Other current assets | 19,585 | |
Total current assets acquired | 277,999 | |
Noncurrent assets: | ||
Goodwill | 365,928 | |
Other noncurrent assets | 3,745 | |
Total assets acquired | 980,672 | |
Current liabilities: | ||
Accounts payable | 6,743 | |
Settlement liabilities | 212,892 | |
Employee compensation | 1,959 | |
Other current liabilities | 3,802 | |
Total current liabilities acquired | 225,396 | |
Noncurrent liabilities: | ||
Other noncurrent liabilities | 1,219 | |
Total liabilities acquired | 226,615 | |
Net assets acquired | 754,057 | |
SpeedPay | Software | ||
Noncurrent assets: | ||
Finite-lived intangible assets | $ 113,600 | |
Weighted Average Useful Lives | 7 years | |
SpeedPay | Customer relationships | ||
Noncurrent assets: | ||
Finite-lived intangible assets | $ 208,500 | |
Weighted Average Useful Lives | 15 years | |
SpeedPay | Trademarks | ||
Noncurrent assets: | ||
Finite-lived intangible assets | $ 10,900 | |
Weighted Average Useful Lives | 5 years |
Acquisition - Summary of Unaudi
Acquisition - Summary of Unaudited Pro Forma Financial Information (Details) - SpeedPay - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Pro forma revenue | $ 354,901 | $ 330,983 | $ 983,037 | $ 957,673 |
Pro forma net income | $ 32,513 | $ 20,379 | $ 26,517 | $ 3,418 |
Pro forma income per share: | ||||
Basic (in USD per share) | $ 0.28 | $ 0.18 | $ 0.23 | $ 0.03 |
Diluted (in USD per share) | $ 0.27 | $ 0.17 | $ 0.22 | $ 0.03 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) customer in Thousands | May 09, 2019USD ($)customer | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Apr. 05, 2019USD ($) |
Revolving Credit Facility | Credit Agreement | ||||
Business Acquisition [Line Items] | ||||
Line of credit, carrying amount | $ 265,000,000 | $ 265,000,000 | ||
SpeedPay | ||||
Business Acquisition [Line Items] | ||||
Acquisition purchase price | $ 754,100,000 | |||
Acquisition-related costs | 900,000 | 22,200,000 | ||
Acquisition-related revenue | 87,700,000 | 137,100,000 | ||
Acquisition-related operating income | $ 7,500,000 | $ 15,200,000 | ||
SpeedPay | Bank of America | Delayed Draw Term Loan | Credit Agreement | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
SpeedPay | Bank of America | Revolving Credit Facility | Credit Agreement | ||||
Business Acquisition [Line Items] | ||||
Line of credit, carrying amount | $ 250,000,000 | |||
SpeedPay | U.S. | ||||
Business Acquisition [Line Items] | ||||
Number of customers | customer | 4 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities on Long-Term Debt Outstanding (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2019 | $ 9,738 |
2020 | 38,950 |
2021 | 38,950 |
2022 | 50,431 |
2023 | 69,906 |
Thereafter | 1,222,823 |
Total | $ 1,430,798 |
Debt - Summary of Total Debt (D
Debt - Summary of Total Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,407,674 | $ 671,756 |
Debt issuance costs | (23,124) | (13,203) |
Less: current portion of term loans | 34,119 | 20,767 |
Less: current portion of debt issuance costs | (4,831) | (2,980) |
Total long-term debt | 1,373,555 | 650,989 |
Term Loans | ||
Debt Instrument [Line Items] | ||
Total debt | 765,798 | 284,959 |
Less: current portion of term loans | 38,950 | 23,747 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 265,000 | 0 |
Senior Notes | 5.750% Senior Notes, due August 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 400,000 | $ 400,000 |
Debt - Additional Information (
Debt - Additional Information (Details) | Apr. 05, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Apr. 29, 2019USD ($) | Aug. 21, 2018USD ($) | Feb. 24, 2017 |
Debt Instrument [Line Items] | ||||||
Long-term debt, amount outstanding | $ 1,430,798,000 | |||||
Payments for debt issuance costs | (12,830,000) | $ (7,253,000) | ||||
Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Payments for debt issuance costs | $ (12,800,000) | |||||
Effective interest rate (percentage) | 4.29% | |||||
Credit Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated total net leverage ratio | 5 | 4.25 | ||||
Credit Agreement | Parent Company and Domestic Subsidiaries | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of capital stock pledged as collateral | 100.00% | |||||
Credit Agreement | Foreign Subsidiaries | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of capital stock pledged as collateral | 65.00% | |||||
Credit Agreement | Base Rate | Option (a) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.25% | |||||
Credit Agreement | Base Rate | Option (a) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||
Credit Agreement | Federal Funds Effective Swap Rate | Option (a) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||
Credit Agreement | LIBOR | Option (a) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.00% | |||||
Credit Agreement | LIBOR | Option (b) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||
Credit Agreement | LIBOR | Option (b) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||
Revolving Credit Facility | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, amount outstanding | $ 265,000,000 | |||||
Unused borrowings | 235,000,000 | |||||
Debt instrument, term | 5 years | |||||
Credit facility, maximum borrowing capacity | $ 500,000,000 | |||||
Term Loans | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, amount outstanding | 765,800,000 | |||||
Term Loans | Credit Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated senior secured net leverage ratio | 3.75 | 3.50 | ||||
Initial Term Loan | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 279,000,000 | |||||
Debt instrument, term | 5 years | |||||
Delayed Draw Term Loan | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 500,000,000 | |||||
Debt instrument, term | 5 years | |||||
Senior Notes | 5.750% Senior Notes, due August 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, amount outstanding | 400,000,000 | |||||
Debt instrument, face amount | $ 400,000,000 | |||||
Issue price percentage of senior notes of the principal amount | 100.00% | |||||
Stated interest rate (percentage) | 5.75% | |||||
Line of Credit | Overdraft Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 140,000,000 | |||||
Amount outstanding on overdraft facility | $ 0 | |||||
Line of Credit | Overdraft Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.875% | |||||
Other | Multi-year License Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Other long-term debt, multi-year license agreements entered into during the period | $ 10,400,000 | |||||
Other long-term debt, amount outstanding | 13,800,000 | |||||
Other | Multi-year License Agreement | Other Current Liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Other long-term debt, current | 6,000,000 | |||||
Other | Multi-year License Agreement | Other Noncurrent Liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Other long-term debt, noncurrent | $ 7,800,000 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Summary of Stock Option Activity (Details) | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 4,864,836 |
Exercised (in shares) | shares | (419,928) |
Forfeited (in shares) | shares | (3,496) |
Outstanding, ending balance (in shares) | shares | 4,441,412 |
Exercisable, ending balance (in shares) | shares | 3,897,260 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 17.76 |
Exercised (in dollars per share) | $ / shares | 15.90 |
Forfeited (in dollars per share) | $ / shares | 17.89 |
Ending balance (in dollars per share) | $ / shares | 17.93 |
Weighted average exercise price, exercisable, ending balance (in dollars per share) | $ / shares | $ 17.61 |
Weighted Average Remaining Contractual Term (Years) | |
Weighted average remaining contractual term, outstanding, end of period (in years) | 5 years 6 months 7 days |
Weighted average remaining contractual term, exercisable, end of period (in years) | 5 years 3 months 14 days |
Aggregate Intrinsic Value of In-the-Money Options | |
Aggregate intrinsic value of in-the-money options, outstanding, end of period | $ | $ 59,471,161 |
Aggregate intrinsic value of in-the-money options, exercisable, end of period | $ | $ 53,440,113 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Summary of Grant Date Fair Value Weighted Average Assumptions (Details) - Black-Scholes Option-Pricing Model - Stock Option | 9 Months Ended |
Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (years) | 5 years 7 months 6 days |
Risk-free interest rate | 2.70% |
Expected volatility | 26.40% |
Expected dividend yield | 0.00% |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Summary of Nonvested LTIP Performance Shares (Details) - LTIP Performance Shares | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Number of Shares at Expected Attainment | |
Nonvested, beginning balance (in shares) | shares | 540,697 |
Forfeited (in shares) | shares | (23,029) |
Change in attainment (in shares) | shares | 377,557 |
Nonvested, ending balance (in shares) | shares | 895,225 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 19.83 |
Forfeited (in dollars per share) | $ / shares | 20.12 |
Change in attainment (in dollars per share) | $ / shares | 20.22 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 19.99 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Summary of Nonvested RSAs (Details) - Restricted Share Awards (RSAs) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Number of Shares | |
Nonvested, beginning balance (in shares) | shares | 213,337 |
Vested (in shares) | shares | (106,610) |
Forfeited (in shares) | shares | (10,934) |
Nonvested, ending balance (in shares) | shares | 95,793 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 20.21 |
Vested (in dollars per share) | $ / shares | 20.17 |
Forfeited (in dollars per share) | $ / shares | 20.12 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 20.21 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Summary of Nonvested TSRs (Details) - Total Shareholder Return Awards (TSRs) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Number of Shares | |
Nonvested, beginning balance (in shares) | shares | 718,931 |
Granted (in shares) | shares | 436,674 |
Forfeited (in shares) | shares | (27,567) |
Nonvested, ending balance (in shares) | shares | 1,128,038 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 29.25 |
Granted (in dollars per share) | $ / shares | 47.90 |
Forfeited (in dollars per share) | $ / shares | 37.22 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 36.27 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Summary of Grant Date Fair Value Weighted Average Assumptions - TSRs (Details) - Total Shareholder Return Awards (TSRs) - Monte Carlo Simulation Model | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 2 years 9 months 18 days | 2 years 10 months 24 days |
Risk-free interest rate | 2.50% | 2.40% |
Expected volatility | 29.30% | 28.00% |
Expected dividend yield | 0.00% | 0.00% |
Stock-Based Compensation Plan_8
Stock-Based Compensation Plans - Summary of Nonvested RSUs (Details) - Restricted Share Units (RSUs) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Number of Shares | |
Nonvested, beginning balance (in shares) | shares | 651,045 |
Granted (in shares) | shares | 687,302 |
Vested (in shares) | shares | (259,634) |
Forfeited (in shares) | shares | (36,588) |
Nonvested, ending balance (in shares) | shares | 1,042,125 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 23.82 |
Granted (in dollars per share) | $ / shares | 33.05 |
Vested (in dollars per share) | $ / shares | 24.16 |
Forfeited (in dollars per share) | $ / shares | 27.94 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 29.68 |
Stock-Based Compensation Plan_9
Stock-Based Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 9,371 | $ 6,575 | $ 30,328 | $ 20,642 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Incentive plan, weighted average grant date fair value of stock options granted (in dollars per share) | $ 7.03 | |||
Incentive plan, total intrinsic value of stock options exercised | 6,900 | $ 13,600 | ||
Unrecognized compensation costs | 500 | $ 500 | ||
Unrecognized compensation costs, weighted average recognition period | 6 months | |||
LTIP Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, additional expense due to changes in expected attainment rates | $ 6,000 | |||
Unrecognized compensation costs | 2,400 | $ 2,400 | ||
Unrecognized compensation costs, weighted average recognition period | 6 months | |||
Restricted Share Awards (RSAs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares vested | 106,610 | |||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 32,371 | |||
Unrecognized compensation costs | 800 | $ 800 | ||
Unrecognized compensation costs, weighted average recognition period | 4 months 24 days | |||
Total Shareholder Return Awards (TSRs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs | 23,200 | $ 23,200 | ||
Unrecognized compensation costs, weighted average recognition period | 1 year 10 months 24 days | |||
Restricted Share Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares vested | 259,634 | |||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 57,802 | |||
Unrecognized compensation costs | 23,900 | $ 23,900 | ||
Unrecognized compensation costs, weighted average recognition period | 1 year 7 months 6 days | |||
2017 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued under ESPP | 92,765 | 112,549 | ||
2016 Equity and Performance Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 9,300 | 6,500 | $ 30,300 | $ 20,600 |
Stock-based compensation expense, tax benefits | $ 1,500 | $ 1,500 | $ 5,500 | $ 3,600 |
Software and Other Intangible_3
Software and Other Intangible Assets - Summary of Carrying Amount and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 529,734 | $ 314,339 |
Accumulated Amortization | (166,388) | (146,212) |
Total | 363,346 | 168,127 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 502,682 | 297,991 |
Accumulated Amortization | (149,946) | (131,187) |
Total | 352,736 | 166,804 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 27,052 | 16,348 |
Accumulated Amortization | (16,442) | (15,025) |
Total | $ 10,610 | $ 1,323 |
Software and Other Intangible_4
Software and Other Intangible Assets - Schedule of Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 363,346 | $ 168,127 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2019 | 17,416 | |
2020 | 64,756 | |
2021 | 51,549 | |
2022 | 33,878 | |
2023 | 23,374 | |
Thereafter | 44,963 | |
Total | 235,936 | |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2019 | 9,304 | |
2020 | 36,783 | |
2021 | 36,308 | |
2022 | 36,166 | |
2023 | 35,876 | |
Thereafter | 208,909 | |
Total | $ 363,346 |
Software and Other Intangible_5
Software and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Software, net | $ 235,936 | $ 235,936 | $ 137,228 | ||
Software, accumulated amortization | 288,300 | 288,300 | 252,200 | ||
Other intangible assets amortization expense | 9,400 | $ 4,700 | 22,500 | $ 14,400 | |
Software for Resale | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Software, net | 18,500 | 18,500 | 27,500 | ||
Software, amortization expense | 2,800 | 2,600 | 8,800 | 9,600 | |
Software for Internal Use | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Software, net | 217,400 | 217,400 | $ 109,700 | ||
Software, amortization expense | $ 15,700 | $ 10,200 | $ 39,400 | $ 31,000 | |
Minimum | Software for Resale | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life (in years) | 3 years | ||||
Minimum | Software for Internal Use | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life (in years) | 3 years | ||||
Maximum | Software for Resale | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life (in years) | 10 years | ||||
Maximum | Software for Internal Use | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life (in years) | 10 years |
Corporate Restructuring and O_3
Corporate Restructuring and Other Organizational Changes - Summary of Facility Closures Liability (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 4,127 |
Amounts paid during the period | (1,167) |
Foreign currency translation adjustments | (42) |
Ending balance | $ 2,918 |
Corporate Restructuring and O_4
Corporate Restructuring and Other Organizational Changes - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 2,918 | $ 4,127 |
Other Current Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,400 | |
Operating Lease Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1,500 |
Common Stock and Treasury Sto_2
Common Stock and Treasury Stock - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 178 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Feb. 28, 2018 | |
Equity [Abstract] | |||||
Amount approved for repurchase | $ 200,000,000 | ||||
Shares repurchased (in shares) | 1,204,300 | 1,228,102 | 2,346,427 | 45,357,495 | |
Shares repurchased, value | $ 34,986,000 | $ 35,617,000 | $ 54,527,000 | $ 583,400,000 | |
Maximum remaining amount authorized for purchase | $ 141,000,000 | $ 141,000,000 | $ 141,000,000 |
Earnings (Loss) Per Share - Rec
Earnings (Loss) Per Share - Reconciliation of Weighted Average Share Amounts Used to Compute Basic and Diluted Earnings (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Weighted average shares outstanding: | ||||
Basic weighted average shares outstanding (in shares) | 116,169 | 115,889 | 116,337 | 115,615 |
Add: Dilutive effect of stock options and RSUs (in shares) | 2,138 | 1,603 | 2,123 | 0 |
Diluted weighted average shares outstanding (in shares) | 118,307 | 117,492 | 118,460 | 115,615 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||
Antidilutive securities excluded from earnings (loss) per share, options to purchase shares, RSAs, RSUs, and contingently issuable shares (in shares) | 2,100,000 | 1,200,000 | 2,100,000 | 8,000,000 | |
Common stock outstanding (in shares) | 115,566,482 | 115,566,482 | 116,123,361 |
Other, Net - Additional Informa
Other, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency transaction gains (losses) | $ (2.4) | $ (1.3) | $ (2.9) | $ (3) |
Segment Information - Selected
Segment Information - Selected Financial Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 354,901 | $ 245,525 | $ 858,374 | $ 689,830 |
Depreciation and amortization | (33,913) | (23,545) | (88,543) | (72,889) |
Stock-based compensation expense | (9,371) | (6,575) | (30,328) | (20,642) |
Corporate and unallocated expenses | (19,512) | (22,610) | (80,315) | (64,122) |
Interest, net | (15,999) | (9,810) | (36,906) | (23,406) |
Other, net | (2,369) | (1,304) | (2,879) | (3,036) |
Income (loss) before income taxes | 36,950 | 17,245 | (18,442) | (16,945) |
Operating Segments | ACI On Premise | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 161,949 | 141,006 | 383,075 | 367,431 |
Segment Adjusted EBITDA | 99,553 | 77,819 | 184,890 | 171,477 |
Depreciation and amortization | (2,963) | (2,772) | (9,012) | (8,596) |
Stock-based compensation expense | (2,227) | (1,806) | (6,234) | (5,111) |
Operating Segments | ACI On Demand | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 192,952 | 104,519 | 475,299 | 322,399 |
Segment Adjusted EBITDA | 18,561 | 3,270 | 35,639 | (4,327) |
Depreciation and amortization | (9,059) | (7,906) | (25,110) | (23,468) |
Stock-based compensation expense | (2,389) | (1,802) | (6,554) | (5,099) |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | (21,891) | (12,867) | (54,421) | (40,825) |
Stock-based compensation expense | $ (4,755) | $ (2,967) | $ (17,540) | $ (10,432) |
Segment Information - Selecte_2
Segment Information - Selected Financial Data, Revenues and Long lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 354,901 | $ 245,525 | $ 858,374 | $ 689,830 | |
Long-lived assets | |||||
Long-lived assets | 2,272,896 | 2,272,896 | $ 1,528,930 | ||
Bill Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 154,285 | 64,134 | 348,592 | 204,673 | |
Digital Channels | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 15,271 | 16,826 | 61,240 | 58,060 | |
Merchant Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 23,273 | 25,753 | 73,213 | 65,094 | |
Payments Intelligence | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 22,382 | 16,842 | 53,778 | 56,040 | |
Real-Time Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 20,223 | 24,244 | 58,271 | 54,560 | |
Retail Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 119,467 | 97,726 | 263,280 | 251,403 | |
Americas - United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 230,158 | 114,423 | 541,137 | 357,451 | |
Long-lived assets | |||||
Long-lived assets | 1,527,747 | 1,527,747 | 811,435 | ||
Americas - Other | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 25,147 | 19,118 | 53,355 | 52,346 | |
EMEA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 84,853 | 93,123 | 204,019 | 218,732 | |
Asia Pacific | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 14,743 | 18,861 | 59,863 | 61,301 | |
Other | |||||
Long-lived assets | |||||
Long-lived assets | 745,149 | 745,149 | $ 717,495 | ||
Operating Segments | ACI On Premise | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 161,949 | 141,006 | 383,075 | 367,431 | |
Operating Segments | ACI On Premise | Bill Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Operating Segments | ACI On Premise | Digital Channels | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 6,791 | 7,499 | 24,960 | 27,779 | |
Operating Segments | ACI On Premise | Merchant Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 4,739 | 6,272 | 17,398 | 16,655 | |
Operating Segments | ACI On Premise | Payments Intelligence | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 13,623 | 7,203 | 27,164 | 25,532 | |
Operating Segments | ACI On Premise | Real-Time Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 19,191 | 23,704 | 55,714 | 53,086 | |
Operating Segments | ACI On Premise | Retail Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 117,605 | 96,328 | 257,839 | 244,379 | |
Operating Segments | ACI On Demand | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 192,952 | 104,519 | 475,299 | 322,399 | |
Operating Segments | ACI On Demand | Bill Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 154,285 | 64,134 | 348,592 | 204,673 | |
Operating Segments | ACI On Demand | Digital Channels | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 8,480 | 9,327 | 36,280 | 30,281 | |
Operating Segments | ACI On Demand | Merchant Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 18,534 | 19,481 | 55,815 | 48,439 | |
Operating Segments | ACI On Demand | Payments Intelligence | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 8,759 | 9,639 | 26,614 | 30,508 | |
Operating Segments | ACI On Demand | Real-Time Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 1,032 | 540 | 2,557 | 1,474 | |
Operating Segments | ACI On Demand | Retail Payments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 1,862 | 1,398 | 5,441 | 7,024 | |
Operating Segments | Americas - United States | ACI On Premise | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 53,986 | 26,022 | 116,104 | 82,280 | |
Operating Segments | Americas - United States | ACI On Demand | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 176,172 | 88,401 | 425,033 | 275,171 | |
Operating Segments | Americas - Other | ACI On Premise | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 22,879 | 16,709 | 46,237 | 45,269 | |
Operating Segments | Americas - Other | ACI On Demand | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 2,268 | 2,409 | 7,118 | 7,077 | |
Operating Segments | EMEA | ACI On Premise | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 72,662 | 80,738 | 167,268 | 181,913 | |
Operating Segments | EMEA | ACI On Demand | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 12,191 | 12,385 | 36,751 | 36,819 | |
Operating Segments | Asia Pacific | ACI On Premise | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 12,422 | 17,537 | 53,466 | 57,969 | |
Operating Segments | Asia Pacific | ACI On Demand | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 2,321 | $ 1,324 | $ 6,397 | $ 3,332 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Sep. 30, 2018 | |
Revenue Benchmark | Canada | Geographic Concentration Risk | |
Segment Reporting Information [Line Items] | |
Customer concentration risk, percentage | 11.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate, percentage | 14.00% | 12.00% | 163.00% | (11.00%) | |
Earnings of foreign entities | $ 16.6 | $ 27.3 | $ 21.5 | $ 32.7 | |
Decrease in valuation allowance, non-cash benefit to income tax expense | 18.5 | ||||
Unrecognized tax benefit for uncertain tax positions | 24.4 | 24.4 | $ 28.4 | ||
Liabilities for interest and penalties, excluded from unrecognized tax benefits for uncertain tax positions | 1.2 | 1.2 | $ 1.2 | ||
Decrease in unrecognized tax benefits due to the settlement of various audits and expiration of statutes of limitations | $ 0.3 | $ 0.3 |
Leases - Summary of Components
Leases - Summary of Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 4,491 | $ 12,814 |
Variable lease cost | 966 | 2,712 |
Sublease income | (105) | (385) |
Total lease cost | $ 5,352 | $ 15,141 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 4,622 | $ 14,882 |
Right-of-use assets obtained in exchange for new lease obligations: | ||
Operating leases | $ 2,718 | $ 8,920 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information related to Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Operating lease right-of-use assets | $ 60,280 | $ 0 |
Liabilities: | ||
Other current liabilities | 15,112 | 0 |
Operating lease liabilities | 48,281 | $ 0 |
Total operating lease liabilities | $ 63,393 | |
Weighted average remaining operating lease term (years) | 6 years 7 months 2 days | |
Weighted average operating lease discount rate | 4.03% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities on Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 4,060 |
2020 | 17,153 |
2021 | 12,565 |
2022 | 9,649 |
2023 | 7,455 |
Thereafter | 21,351 |
Total lease payments | 72,233 |
Less: imputed interest | 8,840 |
Total lease liability | $ 63,393 |
Leases - Schedule of Future Pay
Leases - Schedule of Future Payments Under Operating Lease Agreements (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 16,925 |
2020 | 14,212 |
2021 | 10,538 |
2022 | 8,178 |
2023 | 6,529 |
Thereafter | 21,196 |
Total minimum lease payments | $ 77,578 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating leases not yet commenced, office facilities, amount | $ 2.8 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating leases not yet commenced, term of contract (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, option to extend | 25 years |
Operating leases not yet commenced, term of contract (in years) | 7 years |