Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 22, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
Title of 12(b) Security | Common Stock, $0.005 par value | ||
Trading Symbol | ACIW | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,767,626,204 | ||
Entity Common Stock, Shares Outstanding | 117,142,557 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference – Portions of the registrant’s definitive Proxy Statement for the Annual Meeting of Shareholders to be held on June 2, 2021, are incorporated by reference in Part III of this report. This registrant’s Proxy Statement will be filed with the Securities and Exchange Commission pursuant to Regulation 14A. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000935036 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 165,374 | $ 121,398 |
Receivables, net of allowances of $3,912 and $5,149, respectively | 342,879 | 359,197 |
Settlement assets | 605,008 | 391,039 |
Prepaid expenses | 24,288 | 24,542 |
Other current assets | 17,365 | 24,200 |
Total current assets | 1,154,914 | 920,376 |
Noncurrent assets | ||
Accrued receivables, net | 215,772 | 213,041 |
Property and equipment, net | 64,734 | 70,380 |
Operating lease right-of-use assets | 41,243 | 57,382 |
Software, net | 196,456 | 234,517 |
Goodwill | 1,280,226 | 1,280,525 |
Intangible assets, net | 321,983 | 356,969 |
Deferred income taxes, net | 57,476 | 51,611 |
Other noncurrent assets | 54,099 | 72,733 |
TOTAL ASSETS | 3,386,903 | 3,257,534 |
Current liabilities | ||
Accounts payable | 41,223 | 37,010 |
Settlement liabilities | 604,096 | 368,719 |
Employee compensation | 48,560 | 29,318 |
Current portion of long-term debt | 34,265 | 34,148 |
Deferred revenue | 95,849 | 65,784 |
Other current liabilities | 81,612 | 76,971 |
Total current liabilities | 905,605 | 611,950 |
Noncurrent liabilities | ||
Deferred revenue | 33,564 | 53,155 |
Long-term debt | 1,120,742 | 1,339,007 |
Deferred income taxes, net | 40,504 | 32,053 |
Operating lease liabilities | 39,958 | 46,766 |
Other noncurrent liabilities | 39,933 | 44,635 |
Total liabilities | 2,180,306 | 2,127,566 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity | ||
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at December 31, 2020 and 2019 | 0 | 0 |
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at December 31, 2020 and 2019 | 702 | 702 |
Additional paid-in capital | 682,431 | 667,658 |
Retained earnings | 1,003,490 | 930,830 |
Treasury stock, at cost, 23,412,870 and 24,538,703 shares at December 31, 2020 and 2019, respectively | (387,581) | (377,639) |
Accumulated other comprehensive loss | (92,445) | (91,583) |
Total stockholders’ equity | 1,206,597 | 1,129,968 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,386,903 | $ 3,257,534 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,912 | $ 5,149 |
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) | 23,412,870 | 24,538,703 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Revenues | ||||||||||||||
Total revenues | $ 387,044 | $ 315,883 | $ 299,910 | $ 291,485 | $ 399,920 | $ 354,901 | $ 297,618 | $ 205,855 | $ 1,294,322 | $ 1,258,294 | $ 1,009,780 | |||
Operating expenses | ||||||||||||||
Cost of revenue | 150,697 | 158,579 | 147,346 | 165,837 | 173,104 | 174,168 | 155,240 | 114,941 | 622,459 | [1] | 617,453 | [1] | 430,351 | [1] |
Research and development | 31,118 | 33,573 | 35,578 | 39,024 | 34,601 | 36,543 | 39,235 | 36,194 | 139,293 | 146,573 | 143,630 | |||
Selling and marketing | 26,875 | 22,154 | 24,455 | 30,083 | 30,875 | 30,417 | 32,962 | 29,430 | 103,567 | 123,684 | 117,881 | |||
General and administrative | 49,784 | 37,000 | 29,758 | 35,926 | 27,174 | 27,286 | 49,319 | 31,517 | 152,468 | 135,296 | 107,422 | |||
Depreciation and amortization | 32,863 | 33,395 | 33,635 | 31,898 | 31,753 | 31,169 | 26,744 | 21,866 | 131,791 | 111,532 | 84,585 | |||
Total operating expenses | 291,337 | 284,701 | 270,772 | 302,768 | 297,507 | 299,583 | 303,500 | 233,948 | 1,149,578 | 1,134,538 | 883,869 | |||
Operating income | 95,707 | 31,182 | 29,138 | (11,283) | 102,413 | 55,318 | (5,882) | (28,093) | 144,744 | 123,756 | 125,911 | |||
Other income (expense) | ||||||||||||||
Interest expense | (12,392) | (12,925) | (14,142) | (17,171) | (18,109) | (18,987) | (15,323) | (11,614) | (56,630) | (64,033) | (41,530) | |||
Interest income | 2,847 | 2,927 | 2,954 | 2,900 | 2,949 | 2,988 | 2,997 | 3,033 | 11,628 | 11,967 | 11,142 | |||
Other, net | 5,245 | 1,356 | 2,041 | (9,758) | 3,399 | (2,369) | 1,402 | (1,912) | (1,116) | 520 | (3,724) | |||
Total other income (expense) | (4,300) | (8,642) | (9,147) | (24,029) | (11,761) | (18,368) | (10,924) | (10,493) | (46,118) | (51,546) | (34,112) | |||
Income before income taxes | 91,407 | 22,540 | 19,991 | (35,312) | 90,652 | 36,950 | (16,806) | (38,586) | 98,626 | 72,210 | 91,799 | |||
Income tax expense | 24,261 | 6,674 | 5,916 | (10,885) | 35,166 | 5,136 | (22,531) | (12,623) | 25,966 | 5,148 | 22,878 | |||
Net income | $ 67,146 | $ 15,866 | $ 14,075 | $ (24,427) | $ 55,486 | $ 31,814 | $ 5,725 | $ (25,963) | $ 72,660 | $ 67,062 | $ 68,921 | |||
Income per common share | ||||||||||||||
Basic (in dollars per share) | $ 0.57 | $ 0.14 | $ 0.12 | $ (0.21) | $ 0.48 | $ 0.27 | $ 0.05 | $ (0.22) | $ 0.62 | $ 0.58 | $ 0.59 | |||
Diluted (in dollars per share) | $ 0.56 | $ 0.13 | $ 0.12 | $ (0.21) | $ 0.47 | $ 0.27 | $ 0.05 | $ (0.22) | $ 0.62 | $ 0.57 | $ 0.59 | |||
Weighted average common shares outstanding | ||||||||||||||
Basic (in shares) | 116,397 | 116,175 | 116,057 | |||||||||||
Diluted (in shares) | 118,079 | 118,571 | 117,632 | |||||||||||
Software as a service and platform as a service | ||||||||||||||
Revenues | ||||||||||||||
Total revenues | $ 205,288 | $ 190,369 | $ 180,573 | $ 192,950 | $ 203,661 | $ 192,952 | $ 172,499 | $ 108,557 | $ 769,180 | $ 677,669 | $ 433,025 | |||
License | ||||||||||||||
Revenues | ||||||||||||||
Total revenues | 111,858 | 56,773 | 50,136 | 28,129 | 122,584 | 92,058 | 52,541 | 21,078 | 246,896 | 288,261 | 280,556 | |||
Maintenance | ||||||||||||||
Revenues | ||||||||||||||
Total revenues | 52,619 | 53,049 | 52,749 | 53,280 | 53,738 | 52,638 | 51,922 | 55,111 | 211,697 | 213,409 | 219,145 | |||
Services | ||||||||||||||
Revenues | ||||||||||||||
Total revenues | $ 17,279 | $ 15,692 | $ 16,452 | $ 17,126 | $ 19,937 | $ 17,253 | $ 20,656 | $ 21,109 | $ 66,549 | $ 78,955 | $ 77,054 | |||
[1] | The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 72,660 | $ 67,062 | $ 68,921 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (862) | 1,034 | (15,261) |
Total other comprehensive income (loss) | (862) | 1,034 | (15,261) |
Comprehensive income | $ 71,798 | $ 68,096 | $ 53,660 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of accounting change, ASC 606 | $ 764,597 | $ 243,981 | $ 702 | $ 610,345 | $ 550,866 | $ 243,981 | $ (319,960) | $ (77,356) |
Beginning balance at Dec. 31, 2017 | 764,597 | 243,981 | 702 | 610,345 | 550,866 | 243,981 | (319,960) | (77,356) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 68,921 | 68,921 | ||||||
Other comprehensive income (loss) | (15,261) | (15,261) | ||||||
Stock-based compensation | 20,360 | 20,360 | ||||||
Shares issued and forfeited, net, under stock plans | 22,748 | 1,530 | 21,218 | |||||
Repurchase of common stock | (54,527) | (54,527) | ||||||
Repurchase of stock-based compensation awards for tax withholdings | $ (2,588) | (2,588) | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | |||||||
Cumulative effect of accounting change, ASC 606 | $ 1,048,231 | $ 243,981 | 702 | 632,235 | 863,768 | $ 243,981 | (355,857) | (92,617) |
Ending balance at Dec. 31, 2018 | 1,048,231 | 702 | 632,235 | 863,768 | (355,857) | (92,617) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of accounting change, ASC 606 | 1,048,231 | 702 | 632,235 | 863,768 | (355,857) | (92,617) | ||
Net income | 67,062 | 67,062 | ||||||
Other comprehensive income (loss) | 1,034 | 1,034 | ||||||
Stock-based compensation | 36,763 | 36,763 | ||||||
Shares issued and forfeited, net, under stock plans | 16,481 | (1,340) | 17,821 | |||||
Repurchase of common stock | (35,617) | (35,617) | ||||||
Repurchase of stock-based compensation awards for tax withholdings | (3,986) | (3,986) | ||||||
Cumulative effect of accounting change, ASC 606 | 1,048,231 | 702 | 667,658 | 930,830 | (377,639) | (91,583) | ||
Ending balance at Dec. 31, 2019 | 1,129,968 | 702 | 667,658 | 930,830 | (377,639) | (91,583) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of accounting change, ASC 606 | 1,129,968 | 702 | 667,658 | 930,830 | (377,639) | (91,583) | ||
Net income | 72,660 | 72,660 | ||||||
Other comprehensive income (loss) | (862) | (862) | ||||||
Stock-based compensation | 29,602 | 29,602 | ||||||
Shares issued and forfeited, net, under stock plans | 15,678 | (14,829) | 30,507 | |||||
Repurchase of common stock | (28,881) | (28,881) | ||||||
Repurchase of stock-based compensation awards for tax withholdings | (11,568) | (11,568) | ||||||
Cumulative effect of accounting change, ASC 606 | 1,206,597 | 702 | 682,431 | 1,003,490 | (387,581) | (92,445) | ||
Ending balance at Dec. 31, 2020 | 1,206,597 | 702 | 682,431 | 1,003,490 | (387,581) | (92,445) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of accounting change, ASC 606 | $ 1,206,597 | $ 702 | $ 682,431 | $ 1,003,490 | $ (387,581) | $ (92,445) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | 34 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Repurchase of common stock (in shares) | 1,000,000 | 1,228,102 | 2,346,427 | 46,357,495 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 72,660 | $ 67,062 | $ 68,921 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation | 24,728 | 24,092 | 23,805 |
Amortization | 115,588 | 98,477 | 73,545 |
Amortization of operating lease right-of-use assets | 23,448 | 15,934 | 0 |
Amortization of deferred debt issuance costs | 4,802 | 4,128 | 4,637 |
Deferred income taxes | 3,349 | (22,140) | (5,734) |
Stock-based compensation expense | 29,602 | 36,763 | 20,360 |
Other | 6,017 | 5,175 | 2,007 |
Changes in operating assets and liabilities, net of impact of acquisitions: | |||
Receivables | 8,793 | (19,054) | (14,760) |
Accounts payable | 2,484 | (7,703) | 5,766 |
Accrued employee compensation | 18,491 | (10,829) | (9,684) |
Deferred revenue | 9,421 | (37,561) | 14,219 |
Other current and noncurrent assets and liabilities | 16,919 | (16,695) | 850 |
Net cash flows from operating activities | 336,302 | 137,649 | 183,932 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (17,804) | (23,099) | (18,265) |
Purchases of software and distribution rights | (28,829) | (24,915) | (25,628) |
Acquisition of businesses, net of cash acquired | 0 | (757,268) | 0 |
Other | 15,934 | (25,199) | (1,467) |
Net cash flows from investing activities | (30,699) | (830,481) | (45,360) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 3,759 | 3,591 | 3,098 |
Proceeds from exercises of stock options | 11,924 | 12,985 | 19,674 |
Repurchase of stock-based compensation awards for tax withholdings | (11,568) | (3,986) | (2,588) |
Repurchase of common stock | (28,881) | (35,617) | (54,527) |
Proceeds from senior notes | 0 | 0 | 400,000 |
Redemption of senior notes | 0 | 0 | (300,000) |
Proceeds from revolving credit facility | 30,000 | 280,000 | 109,000 |
Repayments of revolving credit facility | (214,000) | (41,000) | (111,000) |
Proceeds from term portion of credit agreement | 0 | 500,000 | 0 |
Repayments of term portion of credit agreement | (38,950) | (28,900) | (109,289) |
Payment for debt issuance costs | 0 | (12,830) | (7,319) |
Payments on or proceeds from other debt, net | (13,854) | (7,020) | (4,753) |
Net cash flows from financing activities | (261,570) | 667,223 | (57,704) |
Effect of exchange rate fluctuations on cash | (57) | (1,495) | (2,076) |
Net increase (decrease) in cash and cash equivalents | 43,976 | (27,104) | 78,792 |
Cash and cash equivalents, beginning of period | 121,398 | 148,502 | 69,710 |
Cash and cash equivalents, end of period | 165,374 | 121,398 | 148,502 |
Supplemental cash flow information | |||
Income taxes paid, net | 27,760 | 27,727 | 32,205 |
Interest paid | $ 51,991 | $ 58,980 | $ 35,300 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | Nature of Business and Summary of Significant Accounting Policies Nature of Business ACI Worldwide, Inc., a Delaware corporation, and its subsidiaries (collectively referred to as “ACI” or the “Company”) develop, market, install, and support a broad line of software products and services primarily focused on facilitating electronic payments. In addition to its own products, the Company distributes or acts as a sales agent for software developed by third parties. These products and services are used principally by banks, intermediaries, merchants, and billers, both in domestic and international markets. Consolidated Financial Statements The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Capital Stock The Company’s outstanding capital stock consists of a single class of common stock. Each share of common stock is entitled to one vote for each matter subject to a stockholder’s vote and to dividends, if and when declared by the board of directors (the “board”). Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash and cash equivalents includes holdings in checking, savings, money market, and overnight sweep accounts, all of which have daily maturities, as well as time deposits with maturities of three months or less at the date of purchase. The carrying amounts of cash and cash equivalents on the consolidated balance sheets approximate fair value. Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict, as the response to the pandemic and available information continues to be evolving. The Company has experienced changes in volumes for certain Merchant and Biller customers and has received limited requests for extended payment terms under existing contracts. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a local and/or global economic recession. Such economic disruption could have a material adverse effect on our business as our customers curtail and reduce capital and overall spending. Policymakers around the globe have responded with fiscal policy actions to support the economy as a whole. The magnitude and overall effectiveness of these actions remains uncertain. The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company's customers, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, uncertain demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers. As of the date of issuance of these consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. Other Current Liabilities The components of other current liabilities are included in the following table (in thousands): December 31, 2020 2019 Operating lease liabilities $ 13,438 $ 15,049 Vendor financed licenses 12,901 9,667 Accrued interest 8,745 9,212 Royalties payable 3,959 6,107 Other 42,569 36,936 Total other current liabilities $ 81,612 $ 76,971 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 December 31, 2020 and 2019, were $246.8 million and $274.0 million, respectively. Property and Equipment Property and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over their estimated useful lives based on asset class. As of December 31, 2020 and 2019, net property and equipment consisted of the following (in thousands): December 31, Useful Lives 2020 2019 Computer and office equipment 3 - 5 years $ 133,346 $ 143,942 Leasehold improvements Lesser of useful life of improvement or remaining life of lease 29,535 33,346 Building and improvements 7 - 30 years 14,588 14,553 Furniture and fixtures 7 years 8,539 12,980 Land Non-depreciable 1,785 1,785 Property and equipment, gross 187,793 206,606 Less: accumulated depreciation (123,059) (136,226) Property and equipment, net $ 64,734 $ 70,380 Software Software may be for internal use or for resale. Costs related to certain software, which is for resale, are capitalized in accordance with Accounting Standards Codification (“ASC”) 985-20, Costs of Software to be Sold, Leased, or Marketed , when the resulting product reaches technological feasibility. The Company generally determines technological feasibility when it has a detailed program design that takes product function, feature and technical requirements to their most detailed, logical form and is ready for coding. The Company does not typically capitalize costs related to software for resale as technological feasibility generally coincides with general availability of the software. The Company capitalizes the costs of software developed or obtained for internal use in accordance with ASC 350-40, Internal Use Software . The Company expenses all costs incurred during the preliminary project stage of its development and capitalizes the costs incurred during the application development stage. Costs incurred relating to upgrades and enhancements to the software are capitalized if it is determined that these upgrades or enhancements add additional functionality to the software. Costs incurred during the application development stage include purchased software licenses, implementation costs, consulting costs, and payroll-related costs for projects that qualify for capitalization. All other costs, primarily related to maintenance and minor software fixes, are expensed as incurred. Amortization of software for resale is determined on a product-by-product basis and begins when the product is available for licensing to customers. The annual amortization is computed using the greater of (a) the ratio of current gross revenues to the total of current and future gross revenues expected to be derived from the software or (b) the straight-line method over the remaining estimated useful life of generally five three Business Combinations The Company applies the provisions of ASC 805, Business Combinations , in the accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, it records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships, covenants not to compete and acquired developed technologies, brand awareness and market position, as well as assumptions about the period of time the brand will continue to be used in our product portfolio, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. Fair Value ASC 820, Fair Value Measurements and Disclosures , (“ASC 820”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. • Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. 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”) was $424.5 million and $432.0 million as of December 31, 2020 and 2019, 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 and Other Intangibles In accordance with 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 using the discounted cash flow valuation model and allocates goodwill to these reporting units using a relative fair value approach. During this assessment, management relies on a number of factors, including operating results, business plans, and anticipated future cash flows. The Company has identified its reportable segments, ACI On Demand and ACI On Premise, as the reporting units. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates, and cash flow projections are the most sensitive and susceptible to change, as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as company-specific risk factors. Operational management, considering industry and company-specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period, assuming a constant WACC and low, long-term growth rates. If the recoverability test indicates potential impairment, the Company calculates an implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in a manner similar to how goodwill is calculated in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to the reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded to write down the carrying value. The calculated fair value substantially exceeded the current carrying value for all reporting units for all periods. Changes in the carrying amount of goodwill attributable to each reporting unit during the year ended December 31, 2020, 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) 370,834 — 370,834 Balance, December 31, 2019 554,617 725,908 1,280,525 Goodwill from acquisitions (1) (299) — (299) Balance, December 31, 2020 $ 554,318 $ 725,908 $ 1,280,226 (1) Goodwill from acquisitions relates to the goodwill recorded, as well as adjustments, for the acquisitions 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 . Other intangible assets, which include customer relationships and trademarks and trade names, are amortized using the straight-line method over periods ranging from four 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 . The Company records its share of earnings and losses in the investment on a one-quarter lag basis. Accordingly, the Company recorded an investment of $19.3 million and $18.5 million, which is included in other noncurrent assets in the consolidated balance sheet as of December 31, 2020 and 2019, respectively. Name Change Effective January 1, 2020, Official Payments Corporation, a wholly owned subsidiary, changed its name to ACI Payments, Inc. An amended and restated certificate of incorporation was filed with the state of Delaware to reflect the change. The Official Payments Corporation name and corresponding trade name may continue to be used until all stationary and marketing materials are transitioned to ACI Payments, Inc. equivalents. Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset group may not be recoverable. An impairment loss is recorded if the sum of the future cash flows expected to result from the use of the asset (undiscounted and without interest charges) is less than the carrying amount of the asset. The amount of the impairment charge is measured based upon the fair value of the asset group. Treasury Stock The Company accounts for shares of its common stock that are repurchased without intent to retire as treasury stock. Such shares are recorded at cost and reflected separately on the consolidated balance sheets as a reduction of stockholders’ equity. The Company issues shares of treasury stock upon exercise of stock options, issuance of restricted share awards and restricted share units, payment of earned performance shares, and for issuances of common stock pursuant to the Company’s employee stock purchase plan. For purposes of determining the cost of the treasury shares re-issued, the Company uses the average cost method. Stock-Based Compensation Plans In accordance with ASC 718, Compensation – Stock Compensation, ("ASC 718") the Company recognizes stock-based compensation expense for awards that are probable of vesting on a straight-line basis over the requisite service period of the award, which is generally the vesting term. Stock-based compensation expense is recorded in operating expenses depending on where the respective individual’s compensation is recorded. The Company generally utilizes the Black-Scholes option-pricing model to determine the fair value of stock options on the date of grant. To determine the grant date fair value of the supplemental stock options and total shareholder return awards (“TSRs”), a Monte Carlo simulation model was used. The assumptions utilized in the Black-Scholes option-pricing and Monte Carlo simulation models, as well as the description of the plans the stock-based awards are granted under, are described in further detail in Note 6, Stock-Based Compensation Plans . Translation of Foreign Currencies The Company’s foreign subsidiaries typically use the local currency of the countries in which they are located as their functional currency. Their assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average exchange rates during the period. Translation gains and losses are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). Transaction gains and losses, including those related to intercompany accounts, that are not considered to be of a long-term investment nature are included in the determination of net income. Transaction gains and losses, including those related to intercompany accounts, that are considered to be of a long-term investment nature are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company periodically assesses its tax exposures and establishes, or adjusts, estimated unrecognized tax benefits for probable assessments by taxing authorities, including the Internal Revenue Service, and various foreign and state authorities. Such unrecognized tax benefits represent the estimated provision for income taxes expected to ultimately be paid. New Accounting Standards Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, 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 12, Leases , for further details. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, codified as ASC 326 . Subsequent amendments to the guidance were issued as follows: ASU 2018-19 in November 2018; ASU 2019-04 in April 2019; ASU 2019-05 in May 2019; ASU's 2019-10 and 2019-11 in November 2019; and ASU 2020-02 in February 2020. 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 is required to use a forward-looking expected credit loss model for billed and accrued receivables. The Company adopted ASU 2016-13 as of January 1, 2020. The adoption of ASU 2016-13 did not have a material impact on the consolidated financial statements. In February 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments , which clarifies or improves various financial instruments topics in the accounting standards codification to increase stakeholder awareness. ASU 2020-03 was effective upon issuance and did not have a material impact on the consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The update provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate (“LIBOR”). This guidance includes optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 is effective for all entities as of March 12, 2020, through December 31, 2022, when the reference rate replacement activity is expected to be completed. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform - Scope , which clarified the scope and application of the original guidance. The adoption of ASU 2020-04 did not have an impact on the Company's consolidated financial statements. Recently Issued Accounting Standards Not Yet Effective In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in this update simplify the accounting for income taxes by removing certain exceptions within ASC 740, as well as clarify and simplify other aspects of the accounting for income taxes to promote consistency among reporting entities. ASU 2019-12 is effective for annual and interim periods beginning after December 15, 2020. The adoption of ASU 2019-12 will not have a material impact on the Company's consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, Codification Improvements , which improves the consistency of the codification by including all disclosure related guidance in the appropriate disclosure sections and clarifies application of various provisions in the codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. ASU 2020-10 is effective for annual periods after December 15, 2020, and early application is permitted for any annual or interim period for which financial statements have not been issued. The adoption of ASU 2020-10 will not have a material impact on the Company's consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Recognition 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 be entitled to in exchange for those products and services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. Contract Combination. The Company may execute more than one contract or agreement with a single customer at or near the same time. The separate contracts or agreements may be viewed as one combined arrangement or separate agreements for revenue recognition purposes. In order to reach appropriate conclusions regarding whether such agreements should be combined, the Company evaluates whether the agreements were negotiated as a package with a single commercial objective, whether the amount of consideration to be paid in one agreement depends on the price and/or performance of another agreement, or whether the product(s) or services promised in the agreements represent a single performance obligation. The conclusions reached can impact the allocation of the transaction price to each performance obligation and the timing of revenue recognition related to those arrangements. Software as a Service (“SaaS”) and Platform as a Service (“PaaS”) Arrangements. The Company’s SaaS-based and PaaS-based arrangements, including implementation, support and other services, represent a single promise to provide continuous access (i.e. a stand-ready performance obligation) to its software solutions and their processing capabilities in the form of a service through one of the Company’s data centers. As each day of providing access to the software solution(s) is substantially the same and the customer simultaneously receives and consumes the benefits as access is provided, the Company’s single promise under its SaaS-based and PaaS-based arrangements is comprised of a series of distinct service periods. The Company’s SaaS-based and PaaS-based arrangements may include fixed consideration, variable consideration, or a combination of the two. Fixed consideration is recognized over the term of the arrangement or longer if the fixed consideration relates to a material right. A material right would be a separate performance obligation. The Company estimates the stand-alone selling price for a material right by reference to the services expected to be provided and the corresponding expected consideration. Variable consideration in these arrangements is typically a function of transaction volume or another usage-based measure. Depending upon the structure of a particular arrangement, the Company: (1) allocates the variable amount to each distinct service period within the series and recognizes revenue as each distinct service period is performed, (2) estimates total variable consideration at contract inception (giving consideration to any constraints that may apply and updating the estimates as new information becomes available) and recognizes the total transaction price over the period to which it relates, or (3) applies the ‘right to invoice’ practical expedient and recognizes revenue based on the amount invoiced to the customer during the period. License Arrangements. The Company’s software license arrangements provide the customer with the right to use functional intellectual property (as it exists at the point in time at which the license is granted) for the duration of the contract term. Implementation, support, and other services are typically considered distinct performance obligations when sold with a software license. Payment terms for the Company’s software license arrangements generally include fixed license and capacity fees that are payable up front or over time. These arrangements may also include incremental usage-based fees that are payable when the customer exceeds its contracted license capacity limits. The Company accounts for capacity overages as a usage-based royalty that is recognized when the usage occurs. When a software license arrangement contains payment terms that are extended beyond one year, a significant financing component may exist. The significant financing component is calculated as the difference between the stated value and present value of the software license fees and is recognized as interest income over the extended payment period. The total fixed software license fee net of the significant financing component is recognized as revenue at the point in time when the software is transferred to the customer. For those software license arrangements that include customer-specific acceptance provisions, such provisions are generally presumed to be substantive and the Company does not recognize revenue until the earlier of the receipt of a written customer acceptance, objective demonstration that the delivered product meets the customer-specific acceptance criteria, or the expiration of the acceptance period. The Company recognizes revenues on such arrangements upon the earlier of receipt of written acceptance or the first production use of the software by the customer. For software license arrangements in which the Company acts as a distributor of another company’s product, and in certain circumstances, modifies or enhances the product, revenues are recorded on a gross basis. These include arrangements in which the Company takes control of the products and is responsible for providing the product or service. For software license arrangements in which the Company acts as a sales agent for another company’s product, revenues are recorded on a net basis. These include arrangements in which the Company does not take control of products and is not responsible for providing the product or service. For software license arrangements in which the Company utilizes a third-party distributor or sales agent, the Company recognizes revenue upon transfer of control of the software license(s) to the third-party distributor or sales agent. The Company’s software license arrangements typically provide the customer with a standard 90-day assurance-type warranty. These warranties do not represent an additional performance obligation as services beyond assuring that the software license complies with agreed-upon specifications are not provided. Software license arrangements typically include an initial post contract customer support (maintenance or “PCS”) term of one year with subsequent renewals for additional years within the initial license period. The Company’s promise to those customers who elect to purchase PCS represents a stand-ready performance obligation that is distinct from the license performance obligation and recognized over the PCS term. The Company also provides various professional services to customers with software licenses. These include project management, software implementation, and software modification services. Revenues from arrangements to provide professional services are generally distinct from the other promises in the contract(s) and are recognized as the related services are performed. Consideration received under these arrangements is either fixed fee or on a time-and-materials basis, which represents variable consideration that must be estimated using the most likely amount based on the range of hours expected to be incurred in providing the services. The Company estimates the stand-alone selling price (“SSP”) for maintenance and professional services based on observable stand-alone sales. The Company applies the residual approach to estimate the SSP for software licenses. Refer to Note 10, Segment Information , for further details, including disaggregation of revenue based on primary solution category and geographic location. Significant Judgments The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information. The Company also applies judgment in determining the term of an arrangement when early termination rights are provided to the customer. The Company’s software license arrangements with its customers often include multiple promises to transfer licensed software products and services. Determining whether the products and/or services are distinct performance obligations that should be accounted for separately may require significant judgment. The Company’s SaaS and PaaS arrangements may include variable consideration in the form of usage-based fees. If the arrangement that includes variable consideration in the form of usage-based fees does not meet the allocation exception for variable consideration, the Company estimates the amount of variable consideration at the outset of the arrangement using either the expected value or most likely amount method, depending on the specifics of each arrangement. These estimates are constrained to the extent that it is probable that a significant reversal of incremental revenue will not occur and are updated each reporting period as additional information becomes available. Judgment is used in determining: (1) whether the financing component in a software license agreement is significant and, if so, (2) the discount rate used in calculating the significant financing component. The Company assesses the significance of the financing component based on the ratio of license fees paid over time to total license fees. If determined to be significant, the financing component is calculated using a rate that discounts the license fees to the cash selling price. Judgment is also used in assessing whether the extension of payment terms in a software license arrangement results in variable consideration and, if so, the amount to be included in the transaction price. The Company applies the portfolio approach to estimate the amount of variable consideration in these arrangements using the most likely amount method that is based on the Company’s historical collection experience under similar arrangements. Significant judgment is required to determine the SSP for each performance obligation, the amount allocated to each performance obligation and whether it depicts the amount that the Company expects to be entitled to in exchange for the related product and/or service. As the selling prices of the Company’s software licenses are highly variable, the Company estimates SSP of its software licenses using the residual approach when the software license is sold with other services and observable SSPs exist for the other services. The Company uses a range of amounts to estimate SSP for maintenance and services. These ranges are based on stand-alone sales and vary based on the type of service and geographic region. If the SSP of a performance obligation is not directly observable, the Company will maximize observable inputs to determine its SSP. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an accrued receivable when revenue is recognized prior to invoicing and the Company’s right to consideration only requires the passage of time, or deferred revenue when revenue is recognized subsequent to invoicing. 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 and SaaS and 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): December 31, 2020 2019 Billed receivables $ 179,177 $ 213,654 Allowance for doubtful accounts (3,912) (5,149) Billed receivables, net 175,265 208,505 Current accrued receivables, net 167,614 150,692 Long-term accrued receivables, net 215,772 213,041 Total accrued receivables, net 383,386 363,733 Total receivables, net $ 558,651 $ 572,238 No customer accounted for more than 10% of the Company’s consolidated receivables balance as of December 31, 2020 and 2019. The Company maintains an allowance for doubtful accounts for expected future credit losses that is calculated based on historical experience, current economic trends, and expectations of near term economic trends. The Company regularly monitors its credit risk exposures in consolidated receivables. The following reflects activity in the Company’s allowance for doubtful accounts receivable for the periods indicated (in thousands): Years Ended December 31, 2020 2019 2018 Balance, beginning of period $ (5,149) $ (3,912) $ (4,799) Provision (increase) decrease 374 (2,561) (1,505) Amounts written off, net of recoveries 941 1,368 2,269 Foreign currency translation adjustments and other (78) (44) 123 Balance, end of period $ (3,912) $ (5,149) $ (3,912) Provision (increases) decreases recorded in general and administrative expense during the years ended December 31, 2020, December 31, 2019, and 2018, reflect (increases) decreases in the allowance for doubtful accounts based upon collection experience, net of collection of customer-specific receivables that were previously reserved for as doubtful of collection. 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 149,253 Recognition of deferred revenue (187,069) Foreign currency translation 620 Balance, December 31, 2019 118,939 Deferral of revenue 149,363 Recognition of deferred revenue (141,313) Foreign currency translation 2,424 Balance, December 31, 2020 $ 129,413 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 or meets the allocation objective. Revenue allocated to remaining performance obligations was $846.9 million as of December 31, 2020, of which the Company expects to recognize approximately 50% over the next 12 months and the remainder thereafter. During the year ended December 31, 2020, the revenue recognized by the Company from performance obligations satisfied in previous periods was $39.3 million. Costs to Obtain and Fulfill a Contract The Company accounts for costs to obtain and fulfill its contracts in accordance with ASC 340-40. The Company capitalizes certain of its sales commissions that meet the definition of incremental costs of obtaining a contract and for which the amortization period is greater than one year. The costs associated with those sales commissions are capitalized during the period in which the Company becomes obligated to pay the commissions and are amortized over the period in which the related products or services are transferred to the customer. As of December 31, 2020 and 2019, $1.3 million and $0.5 million of these costs are included in other current assets, respectively, and $6.2 million and $6.9 million of these costs are included in other noncurrent assets, respectively, on the consolidated balance sheets. During the years ended December 31, 2020 and 2019, the Company recognized $4.7 million and $6.6 million of sales commission expense, respectively, related to the amortization of these costs, which is included in selling and marketing expense on the consolidated statements of operations. The Company capitalizes costs incurred to fulfill its contracts that: (1) relate directly to the arrangement, (2) are expected to generate resources that will be used to satisfy the Company’s performance obligation under the arrangement, and (3) are expected to be recovered through revenue generated under the arrangement. Contract fulfillment costs are expensed as the Company transfers the related services to the customer. As of December 31, 2020 and December 31, 2019, less than $0.1 million and $0.2 million of these costs are included in other current assets, and $9.5 million and $10.2 million of these costs are included in other noncurrent assets, respectively, on the consolidated balance sheets. The amounts capitalized primarily relate to direct costs that enhance resources under the Company’s SaaS and PaaS arrangements. During the years ended December 31, 2020 and 2019, the Company recognized $4.4 million and $5.9 million of expense, respectively, related to the amortization of these costs, which is included in cost of revenue on the consolidated statements of operations. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2020 | |
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 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 United States, 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 increased 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 $22.2 million of costs related to the acquisition of Speedpay for the year ended December 31, 2019. These costs, which consist primarily of investment bank, consulting, and legal fees, are included in general and administrative expenses in the accompanying consolidated statements of operations. Speedpay contributed approximately $329.2 million in total revenue the year ended December 31, 2020. Due to integration activities, the Company is no longer able to separately identify the contribution to operating income generated from the acquisition of Speedpay for the year ended December 31, 2020 . Speedpay contributed approximately $227.7 million in total revenue and $24.9 million in total operating income for the year ended December 31, 2019. In connection with the acquisition, the Company recorded the following amounts based upon its purchase price allocation as of December 31, 2020 (in thousands, except weighted average useful lives): Amount Weighted Average Useful Lives Current assets: Cash and cash equivalents $ 135 Receivables, net of allowances 17,658 Settlement assets 239,604 Prepaid expenses 317 Other current assets 19,585 Total current assets acquired 277,299 Noncurrent assets: Goodwill 366,508 Software 113,600 7 years Customer relationships 208,500 15 years Trade names 10,900 5 years Other noncurrent assets 3,745 Total assets acquired 980,552 Current liabilities: Accounts payable 6,623 Settlement liabilities 212,892 Employee compensation 1,959 Other current liabilities 3,802 Total current liabilities acquired 225,276 Noncurrent liabilities: Other noncurrent liabilities 1,219 Total liabilities acquired 226,495 Net assets acquired $ 754,057 During the year ended December 31, 2020, the Company made adjustments to the preliminary purchase price allocation as additional information became available for accounts payable. 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. The Company's review of the purchase price allocation has been completed. 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 for the years ended December 31, 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. The year ended December 31, 2020, is not presented, as Speedpay is included in the Company's consolidated results for the entire period. The following is the unaudited summarized pro forma financial information for the periods presented (in thousands, except per share data): Years Ended December 31, 2019 2018 Pro forma revenue $ 1,382,957 $ 1,361,729 Pro forma net income $ 82,003 $ 88,428 Pro forma income per share: Basic $ 0.71 $ 0.76 Diluted $ 0.69 $ 0.75 Walletron On May 9, 2019, the Company also completed the acquisition of Walletron, which delivers patented mobile wallet technology. The Company has included the financial results of Walletron in the consolidated financial statements from the date of acquisition, which were not material. RevChip and TranSend On October 1, 2019, the Company acquired certain technology assets of RevChip, LLC ("RevChip") and TranSend Integrated Technologies Inc. ("TranSend") for a combined $7.0 million. As substantially all of the value was in the developed technology, the purchase was recognized as an asset acquisition. The Company has included the financial results of RevChip and TranSend in the consolidated financial statements from the date of acquisition, which were not material. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of December 31, 2020, the Company had $55.0 million, $717.1 million, and $400.0 million outstanding under its Revolving Credit Facility, Term Loan, and Senior Notes, respectively, with up to $443.5 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended, and up to $1.5 million of unused borrowings under the Letter of Credit agreement. The amount of unused borrowings actually available varies in accordance with the terms of the agreement. Credit Agreement On April 5, 2019, the Company (and its wholly-owned subsidiaries, ACI Worldwide Corp. and ACI Payments, Inc. 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 year ended December 31, 2019. The Credit Agreement consists of (a) a five five five 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 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 for the Credit Facility as of December 31, 2020, was 2.15%. 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 ACI Payments, Inc., our electronic bill presentment and payment affiliate, to allow ACI Payments, Inc. 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. Letter of Credit On August 12, 2020, the Company and ACI Payments, Inc. entered into a standby letter of credit (the “Letter of Credit”), under the terms of the Credit Agreement, for $1.5 million. The Letter of Credit expires on July 31, 2021, with automatic renewals for twelve month periods thereafter. The Letter of Credit reduces the maximum available borrowings under the Revolving Credit Facility to $498.5 million. Upon expiration of the Letter of Credit, maximum borrowings will return to $500.0 million. 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, which commenced on February 15, 2019. Interest accrued from August 21, 2018. The 2026 Notes will mature on August 15, 2026. In connection with the issuance of the 2026 Notes, the Company incurred and paid debt issuance costs of $7.3 million for the year ended December 31, 2018. The Company used the net proceeds of the offering described above to redeem, in full, the Company’s outstanding 6.375% Senior Notes due 2020, including accrued interest, and repaid a portion of the outstanding amount under the Term Credit Facility. Maturities on debt outstanding at December 31, 2020, are as follows (in thousands): Fiscal Year Ending December 31, 2021 $ 38,950 2022 50,431 2023 69,906 2024 612,823 2025 — Thereafter 400,000 Total $ 1,172,110 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 December 31, 2020, 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): December 31, 2020 2019 Term loans $ 717,110 $ 756,060 Revolving credit facility 55,000 239,000 5.750% Senior Notes, due August 2026 400,000 400,000 Debt issuance costs (17,103) (21,905) Total debt 1,155,007 1,373,155 Less: current portion of term loans 38,950 38,950 Less: current portion of debt issuance costs (4,685) (4,802) Total long-term debt $ 1,120,742 $ 1,339,007 Overdraft Facility In 2019, the Company and ACI Payments, Inc. entered in to an uncommitted overdraft facility with Bank of America, N.A. The overdraft facility bears interest at LIBOR plus 2.25% 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 consolidated balance sheet. As of December 31, 2020, there was $100.0 million available and no amount outstanding on the overdraft facility. As of December 31, 2019, there was $1.5 million outstanding on the overdraft facility. Other The Company finances certain multi-year license agreements for internal-use software. Upon execution, these arrangements are treated as a non-cash investing and financing activity for purposes of the consolidated statements of cash flows. During the year ended December 31, 2019, the Company financed agreements for $10.4 million with annual payments through April 2022. As of December 31, 2020, $7.8 million was outstanding under these and other license agreements previously entered into, of which $5.6 million and $2.2 million is included in other current liabilities and other noncurrent liabilities, respectively, in the consolidated balance sheet. As of December 31, 2019, $13.8 million was outstanding, of which $6.0 million and $7.8 million was included in other current liabilities and other noncurrent liabilities, respectively, in the consolidated balance sheet. |
Software and Other Intangible A
Software and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Software and Other Intangible Assets | Software and Other Intangible Assets The carrying amount and accumulated amortization of the Company's software assets subject to amortization at each balance sheet date are as follows (in thousands): December 31, 2020 December 31, 2019 Gross Carrying Accumulated Amortization Net Balance Gross Carrying Accumulated Amortization Net Balance Software for resale $ 130,261 $ (123,418) $ 6,843 $ 138,823 $ (122,061) $ 16,762 Software for internal use 430,330 (240,717) 189,613 400,065 (182,310) 217,755 Total software $ 560,591 $ (364,135) $ 196,456 $ 538,888 $ (304,371) $ 234,517 Software for resale amortization expense recorded during the years ended December 31, 2020, 2019, and 2018, totaled $8.5 million, $11.0 million, and $12.8 million, respectively. These software amortization expense amounts are reflected in cost of revenue in the consolidated statements of operations. Software for internal use amortization expense recorded during the years ended December 31, 2020, 2019, and 2018, totaled $70.0 million, $55.6 million, and $41.7 million, respectively. These software amortization expense amounts are reflected in depreciation and amortization in the 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): December 31, 2020 December 31, 2019 Gross Carrying Accumulated Amortization Net Balance Gross Carrying Accumulated Amortization Net Balance Customer relationships $ 512,389 $ (197,787) $ 314,602 $ 507,785 $ (160,775) $ 347,010 Trademarks and trade names 24,115 (16,734) 7,381 27,312 (17,353) 9,959 Total other intangible assets $ 536,504 $ (214,521) $ 321,983 $ 535,097 $ (178,128) $ 356,969 Other intangible assets amortization expense recorded during the years ended December 31, 2020, 2019, and 2018, totaled $37.1 million, $31.9 million, and $19.0 million, respectively. Based on capitalized intangible assets as of December 31, 2020, estimated amortization expense amounts in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Software Other Intangible 2021 $ 67,599 $ 37,062 2022 50,179 36,903 2023 32,004 36,564 2024 20,608 32,044 2025 18,354 23,452 Thereafter 7,712 155,958 Total $ 196,456 $ 321,983 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Employee Stock Purchase Plan On April 6, 2017, the board approved the 2017 Employee Stock Purchase Plan (“2017 ESPP”), which was approved by shareholders at the 2017 Annual Shareholder meeting. The 2017 ESPP provides employees with an opportunity to purchase shares of the Company’s common stock. Under the Company’s 2017 ESPP, a total of 3,000,000 shares of the Company’s common stock have been reserved for issuance to eligible employees. Participating employees are permitted to designate up to the lesser of $25,000 or 10% of their annual base compensation for the purchase of common stock under the ESPP. Purchases under the ESPP are made one calendar month after the end of each fiscal quarter. The price for shares of common stock purchased under the ESPP is 85% of the stock’s fair market value on the last business day of the three-month participation period. Additionally, the discount offered pursuant to the Company’s ESPP discussed above is 15%, which exceeds the 5% non-compensatory guideline in ASC 718 and exceeds the Company’s estimated cost of raising capital. Consequently, the entire 15% discount to employees is deemed to be compensatory for purposes of calculating expense using a fair value method. Compensation expense related to the ESPP for the years ended December 31, 2020, 2019, and 2018, was approximately $0.7 million, $0.6 million, and $0.5 million, respectively. Stock Incentive Plans – Active Plans 2020 Equity and Incentive Compensation Plan On June 9, 2020, upon recommendation of the board, stockholders approved the ACI Worldwide, Inc. 2020 Equity and Incentive Compensation Plan (the “2020 Plan”). The 2020 Plan authorizes the board to provide for equity-based compensation in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, dividend equivalents, and certain other awards, including those denominated or payable in, or otherwise based on, the Company’s common stock ("awards"). The purpose of the 2020 Plan is to provide incentives and rewards for service and/or performance by providing awards to non-employee directors, officers, other employees, and certain consultants and other service providers of the Company and its subsidiaries. Following the approval of the 2020 Plan, the 2016 Equity and Performance Incentive Plan (the “2016 Incentive Plan”) was terminated. Termination of the 2016 Incentive Plan did not affect any equity awards outstanding under the 2016 Incentive Plan. Subject to adjustment and share counting rules as described in the 2020 Plan, a total of 6,658,754 shares of common stock are available for awards granted under the 2020 Plan. Shares underlying certain awards under the 2020 Plan, the Company’s 2005 Equity and Performance Incentive Plan (the "2005 Incentive Plan"), and the 2016 Incentive Plan (each including as amended or amended and restated) that are cancelled or forfeited, expire, are settled for cash, or are unearned after June 9, 2020, will again be available under the 2020 Plan. The board generally will be able to amend the 2020 Plan, subject to stockholder approval in certain circumstances, as described in the 2020 Plan. 2016 Equity and Performance Incentive Plan On March 23, 2016, the board approved the 2016 Incentive Plan. The 2016 Incentive Plan is intended to meet the Company’s objective of balancing stockholder concerns about dilution with the need to provide appropriate incentives to achieve Company performance objectives. The 2016 Incentive Plan was adopted by the stockholders on June 14, 2016. Following the adoption of the 2016 Incentive Plan, the 2005 Incentive Plan was terminated. Termination of the 2005 Incentive Plan did not affect any equity awards outstanding under the 2005 Incentive Plan. The 2016 Incentive Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted share and restricted share units, performance shares and performance units, and other awards (“awards”). Subject to adjustment in certain circumstances, the maximum number of shares of common stock that may be issued or transferred in connection with awards granted under the 2016 Incentive Plan will be the sum of (i) 8,000,000 shares of common stock and (ii) any shares of common stock that are represented by options previously granted under the 2005 Incentive Plan which are forfeited, expire, or are cancelled without delivery of common stock or which result in the forfeiture or relinquishment of common stock back to the Company. To the extent awards granted under the 2016 Incentive Plan terminate, expire, are cancelled without being exercised, are forfeited or lapse for any reason, the shares of common stock subject to such award will again become available for grants under the 2016 Incentive Plan. The 2016 Incentive Plan expressly prohibits re-pricing stock options and appreciation rights. The 2016 Incentive Plan also, subject to certain limited exceptions, expressly requires a one-year vesting period for all stock options and appreciation rights. No eligible person selected by the board to receive awards (“participant”) will receive stock options, stock appreciation rights, restricted share awards, restricted share units, and other awards under the 2016 Incentive Plan, during any calendar year, for more than 3,000,000 shares of common stock. In addition, no participant may receive performance shares or performance units having an aggregate value on the date of grant in excess of $9,000,000 during any calendar year. Each of the limits described above may be adjusted equitably to accommodate a change in the capital structure of the Company. 2005 Equity and Performance Incentive Plan The Company had a 2005 Incentive Plan, as amended, under which shares of the Company’s common stock were reserved for issuance to eligible employees or non-employee directors of the Company. The 2005 Incentive Plan provided for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, performance awards, and other awards. The maximum number of shares of the Company’s common stock that was issued or transferred in connection with awards granted under the 2005 Incentive Plan was the sum of (i) 23,250,000 shares and (ii) any shares represented by outstanding options that had been granted under designated terminated stock option plans that were subsequently forfeited, expired, or are cancelled without delivery of the Company’s common stock. Stock Options Stock options granted pursuant to the Company's incentive plans were granted at an exercise price not less than the market value per share of the Company’s common stock on the date of grant. The term of the outstanding options may not exceed ten years nor be less than one year. Vesting of options is determined by the compensation committee of the board and the administrator of the respective plan and can vary based upon the individual award agreements. In addition, outstanding options do not have dividend equivalent rights associated with them. A summary of stock option activity is as follows: Number of Shares Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value of In-the-Money Options ($) Outstanding, December 31, 2019 4,006,816 $ 18.18 Exercised (1,756,471) 18.53 Forfeited (57,744) 19.08 Expired (6,090) 18.44 Outstanding, December 31, 2020 2,186,511 $ 17.87 3.96 $ 44,944,958 Exercisable, December 31, 2020 2,039,275 $ 17.72 4.16 $ 42,231,530 The weighted average grant date fair value of stock options granted during the year ended December 31, 2018, was $7.03. The Company did not grant stock options during the years ended December 31, 2020 and 2019. The total intrinsic value of stock options exercised during the years ended December 31, 2020, 2019, and 2018, was $19.5 million, $16.0 million, and $15.8 million, respectively. The fair value of options granted during the year ended December 31, 2018, were estimated on the date of grant using the Black-Scholes option-pricing model, acceptable under ASC 718, with the following weighted average assumptions: Year Ended December 31, 2018 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 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 During the year ended December 31, 2017, pursuant to the Company’s 2016 Incentive Plan, the Company granted long-term incentive program performance share awards (“LTIP performance shares”). These LTIP performance shares were earned based upon the achievement, over a specified period that must not be less than one year and is typically a three A summary of the nonvested LTIP performance shares is as follows: Number of Shares at Weighted Average Nonvested at December 31, 2019 669,469 $ 20.12 Vested (668,240) 20.12 Forfeited (5,368) 20.12 Change in expected attainment 4,139 20.12 Nonvested at December 31, 2020 — $ — During the year ended December 31, 2020, a total of 668,240 LTIPs vested. The Company withheld 165,237 of those shares to pay the employees' portion of the minimum payroll withholding taxes. Restricted Share Awards During the year ended December 31, 2017, pursuant to the Company’s 2016 Incentive Plan, the Company granted RSAs. The awards had requisite service periods of three years and vested in increments of 33% on the anniversary of the grant dates. Under each arrangement, shares were issued without direct cost to the employee. The Company estimated the fair value of the RSAs based upon the market price of the Company’s stock on the date of grant. The RSA grants provided for the payment of dividends on the Company’s common stock, if any, to the participant during the requisite service period, and the participant had voting rights for each share of common stock. The Company recognized compensation expense for RSAs on a straight-line basis over the requisite service period. A summary of nonvested RSAs is as follows: Number of Weighted Average Nonvested at December 31, 2019 92,842 $ 20.13 Vested (88,913) 20.12 Forfeited (3,929) 20.35 Nonvested at December 31, 2020 — $ — During the year ended December 31, 2020, a total of 88,913 RSAs vested. The Company withheld 28,233 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. Total Shareholder Return Awards During the years ended December 31, 2020, 2019, and 2018, pursuant to the 2016 Incentive Plan, the Company granted total shareholder return awards (“TSRs”). TSRs are performance shares that are earned, if at all, based upon the Company’s total shareholder return as compared to a group of peer companies over a three-year performance period. The award payout can range from 0% to 200%. To determine the grant date fair value of the TSRs, a Monte Carlo simulation model is used. The Company recognizes compensation expense for the TSRs over a three-year performance period based on the grant date fair value. A summary of nonvested TSRs is as follows: Number of Weighted Average Nonvested as of December 31, 2019 1,062,291 $ 35.77 Granted 677,195 30.01 Vested (199,413) 24.37 Forfeited (158,086) 36.69 Change in payout rate (14,259) 24.37 Nonvested as of December 31, 2020 1,367,728 $ 34.59 During the year ended December 31, 2020, a total of 199,413 TSRs awards granted in fiscal 2017 vested and achieved a payout rate of 93% based on the Company's total shareholder return as compared to a group of peer companies over a three The fair value of TSRs granted during the years ended December 31, 2020, 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: Years Ended December 31, 2020 2019 2018 Expected life (years) 2.8 2.8 2.9 Risk-free interest rate 0.5 % 2.5 % 2.4 % Volatility 31.4 % 29.3 % 28.0 % Expected dividend yield — — — Restricted Share Units During the years ended December 31, 2020, 2019, and 2018, pursuant to the 2020 Plan and the 2016 Incentive Plan, the Company granted restricted share unit awards (“RSUs”). RSUs generally have requisite service periods of three years and vest in increments of 33% on the anniversary of the grant dates. RSUs granted to the board vest one year from grant or as of the next annual shareholders meeting, whichever is earlier. Under each arrangement, RSUs are issued without direct cost to the employee on the vesting date. The Company estimates the fair value of the RSUs based upon the market price of the Company’s stock on the date of grant. The Company recognizes compensation expense for RSUs on a straight-line basis over the requisite service period. A summary of nonvested RSUs is as follows: Number of Weighted Average Nonvested as of December 31, 2019 1,009,404 $ 29.96 Granted 816,543 25.72 Vested (431,504) 29.60 Forfeited (276,261) 28.57 Nonvested as of December 31, 2020 1,118,182 $ 27.34 During the year ended December 31, 2020, a total of 431,504 RSUs vested. The Company withheld 121,564 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. As of December 31, 2020, there was unrecognized compensation expense of $18.9 million related to RSUs, $17.6 million related to TSRs, and less than $0.1 million related to nonvested stock options, which the Company expects to recognize over weighted average periods of 1.8 years, 1.9 years, and 0.2 years, respectively. The Company recorded stock-based compensation expense recognized under ASC 718 during the years ended December 31, 2020, 2019, and 2018, of $29.6 million, $36.8 million, and $20.4 million, respectively, with corresponding tax benefits of $5.4 million, $5.9 million, and $3.9 million, respectively. The Company recognizes compensation expense for stock option awards that vest with only service conditions on a straight-line basis over the requisite service period. The Company recognizes compensation expense for stock option awards that vest with service and market-based conditions on a straight-line basis over the longer of the requisite service period or the estimated period to meet the defined market-based condition. |
Common Stock and Treasury Stock
Common Stock and Treasury Stock | 12 Months Ended |
Dec. 31, 2020 | |
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 of up to $200.0 million, in place of the remaining purchase amounts previously authorized. The Company repurchased 1,000,000 shares for $28.9 million under the program for the year ended December 31, 2020. Under the program to date, the Company has repurchased 46,357,495 shares for approximately $612.3 million. As of December 31, 2020, the maximum remaining amount authorized for purchase under the stock repurchase program was $112.1 million. During the year ended September 30, 2006, the Company began to issue shares of treasury stock upon exercise of stock options, payment of earned performance shares (LTIP performance shares and TSRs), vesting of RSUs, and for issuances of common stock pursuant to the Company’s ESPP. Treasury shares issued by award type are as follows: Years Ended December 31, 2020 2019 2018 Stock options 1,756,471 854,524 1,379,704 LTIP performance shares 668,240 — — TSRs 199,413 — — RSUs 431,504 259,634 10,000 ESPP 151,542 126,983 148,520 Total treasury shares issued 3,207,170 1,241,141 1,538,224 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed in accordance with ASC 260, Earnings per Share, based on weighted average outstanding common shares. Diluted earnings per share is computed based on basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, RSUs, and certain contingently issuable shares for which performance targets have been achieved. The following table reconciles the weighted average share amounts used to compute both basic and diluted earnings per share (in thousands): Years Ended December 31, 2020 2019 2018 Weighted average shares outstanding: Basic weighted average shares outstanding 116,397 116,175 116,057 Add: Dilutive effect of stock options, RSUs, and contingently issuable shares 1,682 2,396 1,575 Diluted weighted average shares outstanding 118,079 118,571 117,632 The diluted earnings per share computation excludes 1.5 million, 1.8 million, and 2.2 million options to purchase shares, RSUs, and contingently issuable shares during the years ended December 31, 2020, 2019, and 2018, respectively, as their effect would be anti-dilutive. Common stock outstanding as of December 31, 2020 and 2019, was 117,112,185 and 115,986,352, respectively. |
Other, Net
Other, Net | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other, Net | Other, Net |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company reports financial performance based on its segments, ACI On Demand and ACI On Premise, 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 Demand serves the needs of banks, merchants, and billers 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. ACI On Premise serves customers who manage their software on site or through a third-party public cloud environment. 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. 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 for the periods indicated (in thousands): Years Ended December 31, 2020 2019 2018 Revenues ACI On Demand $ 769,180 $ 678,960 $ 433,025 ACI On Premise 525,142 579,334 576,755 Total revenue $ 1,294,322 $ 1,258,294 $ 1,009,780 Segment Adjusted EBITDA ACI On Demand $ 149,610 $ 66,501 $ 12,015 ACI On Premise 290,310 321,305 323,902 Depreciation and amortization (140,316) (122,569) (97,350) Stock-based compensation expense (29,602) (36,763) (20,360) Corporate and unallocated expenses (125,258) (104,718) (92,296) Interest, net (45,002) (52,066) (30,388) Other, net (1,116) 520 (3,724) Income before income taxes $ 98,626 $ 72,210 $ 91,799 Depreciation and amortization ACI On Demand $ 40,594 $ 34,395 $ 31,541 ACI On Premise 13,207 11,992 11,634 Corporate 86,515 76,182 54,175 Total depreciation and amortization $ 140,316 $ 122,569 $ 97,350 Stock-based compensation expense ACI On Demand $ 8,852 $ 7,995 $ 4,338 ACI On Premise 8,872 7,651 4,348 Corporate 11,878 21,117 11,674 Total stock-based compensation expense $ 29,602 $ 36,763 $ 20,360 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 for the periods indicated (in thousands): Year Ended December 31, 2020 Year Ended December 31, 2019 ACI On Demand ACI On Premise Total ACI On Demand ACI On Premise Total Primary Geographic Markets Americas - United States $ 687,923 $ 142,588 $ 830,511 $ 609,160 $ 172,660 $ 781,820 Americas - Other 11,561 61,533 73,094 9,350 68,020 77,370 EMEA 58,857 234,369 293,226 50,629 251,035 301,664 Asia Pacific 10,839 86,652 97,491 9,821 87,619 97,440 Total $ 769,180 $ 525,142 $ 1,294,322 $ 678,960 $ 579,334 $ 1,258,294 Primary Solution Categories Bill Payments $ 586,047 $ — $ 586,047 $ 510,300 $ — $ 510,300 Digital Channels 46,269 29,438 75,707 44,731 32,980 77,711 Merchant Payments 84,997 23,730 108,727 77,204 25,693 102,897 Payments Intelligence 40,495 21,570 62,065 36,019 33,790 69,809 Real-Time Payments 3,902 77,158 81,060 3,456 97,153 100,609 Issuing and Acquiring 7,470 373,246 380,716 7,250 389,718 396,968 Total $ 769,180 $ 525,142 $ 1,294,322 $ 678,960 $ 579,334 $ 1,258,294 Year Ended December 31, 2018 ACI On Demand ACI On Premise Total Primary Geographic Markets Americas - United States $ 369,097 $ 131,382 $ 500,479 Americas - Other 9,577 61,969 71,546 EMEA 48,889 296,157 345,046 Asia Pacific 5,462 87,247 92,709 Total $ 433,025 $ 576,755 $ 1,009,780 Primary Solution Categories Bill Payments $ 275,526 $ — $ 275,526 Digital Channels 40,342 35,231 75,573 Merchant Payments 64,956 30,447 95,403 Payments Intelligence 41,330 42,353 83,683 Real-Time Payments 2,193 92,068 94,261 Issuing and Acquiring 8,678 376,656 385,334 Total $ 433,025 $ 576,755 $ 1,009,780 The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands): December 31, 2020 2019 Long-lived Assets United States $ 1,423,862 $ 1,526,046 Other 750,651 759,501 Total $ 2,174,513 $ 2,285,547 No single customer accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2020, 2019, and 2018. No other country outside the United States accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2020, 2019, and 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into U.S. Law. As of December 31, 2018, the Company had completed its accounting for the tax effects related to the enactment of the Tax Act. The Tax Act reduced the U.S. federal corporate income tax rate from 35% to 21%, effective January 1, 2018. During the year ended December 31, 2017, the Company remeasured certain deferred tax assets and liabilities and recorded a $15.0 million provisional tax charge. During the year ended December 31, 2018, the Company reduced the initial provisional tax charge by recording a $4.9 million benefit related to accelerated tax deductions claimed on the 2018 U.S. Federal Income Tax Return. The Tax Act required U.S. companies to pay a one-time transition tax on certain unremitted foreign earnings. During the year ended December 31, 2017, the Company recorded a $20.9 million provisional tax charge based on post-1986 earnings and profits of foreign subsidiaries that were previously deferred from U.S. income taxes. Upon further analysis, the Company reduced the initial provisional tax charge by recording an $8.1 million benefit during the year ended December 31, 2018. During the year ended December 31, 2018, the Company recorded a $15.5 million valuation allowance on its deferred tax asset related to U.S. foreign tax credits based upon business conditions and tax laws in effect at that time. During the year ended December 31, 2019, following the acquisition of Speedpay, the Company determined it will more likely than not be able to utilize foreign tax credits in future years due to additional income generated by Speedpay; therefore, the Company released the $15.5 million valuation allowance that had been established on this deferred tax asset. The Tax Act subjects a U.S. shareholder to tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. The Company has elected to account for GILTI in the year the tax is incurred. Prior to 2018, the Company considered all earnings in foreign subsidiaries to be indefinitely reinvested, and accordingly, recorded no deferred income taxes related to unremitted earnings. As of December 31, 2020, 2019, and 2018 the Company considered only the earnings in its Indian subsidiaries to be indefinitely reinvested. The earnings of all other foreign subsidiaries are no longer considered indefinitely reinvested. The Company is also permanently reinvested for outside book/tax basis differences related to foreign subsidiaries. For financial reporting purposes, income before income taxes includes the following components (in thousands): Years Ended December 31, 2020 2019 2018 United States $ 19,405 $ (16,317) $ 16,312 Foreign 79,221 88,527 75,487 Total $ 98,626 $ 72,210 $ 91,799 The expense (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2020 2019 2018 Federal Current $ (2,683) $ 3,738 $ 6,545 Deferred (3,477) (25,150) (6,587) Total (6,160) (21,412) (42) State Current 2,514 590 4,441 Deferred (1,758) 342 (2,649) Total 756 932 1,792 Foreign Current 22,786 22,960 17,626 Deferred 8,584 2,668 3,502 Total 31,370 25,628 21,128 Total $ 25,966 $ 5,148 $ 22,878 Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of operations are summarized as follows (in thousands): Years Ended December 31, 2020 2019 2018 Tax expense at federal rate of 21% $ 20,711 $ 15,164 $ 19,278 State income taxes, net of federal benefit 321 1,227 5,246 Change in valuation allowance 2,459 (12,760) 12,657 Foreign tax rate differential (1,809) (2,535) (4,796) Unrecognized tax benefit increase (decrease) (4,405) 898 1,262 Tax effect of foreign operations 11,373 6,698 8,546 Tax benefit of research & development (2,173) (2,506) (2,557) Transition tax — — (8,112) Revaluation of deferred tax balances — — (4,937) Performance-based compensation (2,624) (560) (4,541) Other 2,113 (478) 832 Income tax provision $ 25,966 $ 5,148 $ 22,878 The countries having the greatest impact on the tax rate adjustment line shown in the above table as “Foreign tax rate differential” are Ireland, Mexico, Singapore, and the United Kingdom for the year ended December 31, 2020; Ireland, Luxembourg, and the United Kingdom for the year ended December 31, 2019; and Ireland and Luxembourg for the year ended December 31, 2018. The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands): December 31, 2020 2019 Deferred income tax assets: Net operating loss carryforwards $ 20,347 $ 23,030 Tax credits 40,188 47,411 Compensation 18,731 18,791 Deferred revenue 19,169 25,599 Operating lease 10,162 12,956 Other 9,051 8,517 Gross deferred income tax assets 117,648 136,304 Less: valuation allowance (10,112) (7,653) Net deferred income tax assets $ 107,536 $ 128,651 Deferred income tax liabilities: Depreciation and amortization $ (48,967) $ (52,978) Operating lease right-of-use asset (7,650) (11,917) Deferred revenue (33,947) (44,198) Total deferred income tax liabilities (90,564) (109,093) Net deferred income taxes $ 16,972 $ 19,558 Deferred income taxes / liabilities included in the balance sheet are: Deferred income tax asset – noncurrent $ 57,476 $ 51,611 Deferred income tax liability – noncurrent (40,504) (32,053) Net deferred income taxes $ 16,972 $ 19,558 The Company has reclassified certain prior period amounts between deferred income tax line items to conform to the current year presentation of deferred income tax disclosures. The Company reclassified $13.0 million from other deferred tax assets to operating lease deferred tax assets and $11.9 million from other deferred tax assets to operating lease right-of-use asset deferred tax liabilities as of December 31, 2019. The Company also reclassified $5.5 million from tax credit deferred tax assets to other deferred tax assets as of December 31, 2019. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers projected future taxable income, carryback opportunities, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, the Company believes it is more likely than not that it will realize the benefits of these deductible differences, net of the valuation allowances recorded. During the year ended December 31, 2019, the Company decreased its valuation allowance by $12.8 million which relates to a reduction in the valuation allowance on U.S. foreign tax credits offset by an increase in valuation allowance on foreign net operating losses. At December 31, 2020, the Company had domestic federal tax net operating losses (“NOLs”) of $59.9 million, which will begin to expire in 2021. The Company had deferred tax assets equal to $1.5 million related to domestic state tax NOLs which will begin to expire in 2021. The Company does not have any valuation allowance against the federal tax NOLs but has provided a $1.2 million valuation allowance against the deferred tax asset associated with the state NOLs. The Company had foreign tax NOLs of $25.0 million, of which $22.8 million may be utilized over an indefinite life, with the remainder expiring over the next 10 years. The Company has provided a $0.7 million valuation allowance against the deferred tax asset associated with the foreign NOLs. The Company had U.S. foreign tax credit carryforwards at December 31, 2020, of $38.9 million, for which a $2.3 million valuation allowance has been provided. The U.S. foreign tax credits will begin to expire in 2025. The Company had foreign tax credit carryforwards in other foreign jurisdictions at December 31, 2020, of $2.3 million, of which $1.1 million may be utilized over an indefinite life, with the remainder expiring over the next seven years. The Company has provided a $1.2 million valuation allowance against the tax benefit associated with these foreign credits. The Company also has domestic federal and state general business tax credit carryforwards at December 31, 2020, of $17.1 million and $0.8 million, respectively, which will begin to expire in 2021 and 2022, respectively. The unrecognized tax benefit at December 31, 2020 and 2019, was $24.3 million and $29.0 million, respectively, of which $17.7 million and $22.4 million, respectively, are included in other noncurrent liabilities in the consolidated balance sheets. Of the total unrecognized tax benefit amounts at December 31, 2020 and 2019, $23.2 million and $28.2 million, respectively, represent the net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate in the respective years. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands): 2020 2019 2018 Balance of unrecognized tax benefits at beginning of year $ 29,000 $ 28,406 $ 27,237 Increases for tax positions of prior years 4,219 2,784 315 Decreases for tax positions of prior years — (96) (61) Increases for tax positions established for the current period 3,912 2,542 1,185 Decreases for settlements with taxing authorities (285) (220) — Reductions resulting from lapse of applicable statute of limitation (12,630) (4,462) (115) Adjustment resulting from foreign currency translation 94 46 (155) Balance of unrecognized tax benefits at end of year $ 24,310 $ 29,000 $ 28,406 The Company files income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions, and many foreign jurisdictions. The United States, India, Ireland, Mexico, Singapore, and the United Kingdom are the main taxing jurisdictions in which the Company operates. The years open for audit vary depending on the tax jurisdiction. In the United States, the Company’s tax returns for years following 2016 are open for audit. In the foreign jurisdictions, the tax returns open for audit generally vary by jurisdiction between 2003 and 2019. The Company’s Indian income tax returns covering fiscal years 2005, 2010 through 2014, 2016, and 2017 are under audit by the Indian tax authority. Other foreign subsidiaries could face challenges from various foreign tax authorities. It is not certain that the local authorities will accept the Company’s tax positions. The Company believes its tax positions comply with applicable tax law and intends to vigorously defend its positions. However, differing positions on certain issues could be upheld by tax authorities, which could adversely affect the Company’s financial condition and results of operations. The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $3.6 million due to the settlement of various audits and the expiration of statutes of limitations. The Company accrues interest related to uncertain tax positions in interest expense or interest income and recognizes penalties related to uncertain tax positions in other income or other expense. As of December 31, 2020 and 2019, $1.2 million is accrued for the payment of interest and penalties related to income tax liabilities. The aggregate amount of interest and penalties expense (benefit) recorded in the statements of operations for the years ended December 31, 2020, 2019, and 2018, was less than $0.1 million, $0.2 million, and less than $(0.1) million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | LeasesThe 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 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): Years Ended December 31, 2020 2019 Operating lease cost $ 25,148 $ 18,486 Variable lease cost 3,588 3,756 Sublease income (134) (528) Total lease cost $ 28,602 $ 21,714 Supplemental cash flow information related to leases is as follows (in thousands): Years Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18,827 $ 19,578 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 11,431 $ 10,478 Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate): December 31, 2020 2019 Assets: Operating lease right-of-use assets $ 41,243 $ 57,382 Liabilities: Other current liabilities $ 13,438 $ 15,049 Operating lease liabilities 39,958 46,766 Total operating lease liabilities $ 53,396 $ 61,815 Weighted average remaining operating lease term (years) 6.01 6.58 Weighted average operating lease discount rate 3.67 % 4.00 % 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 December 31, 2020, are as follows (in thousands): Fiscal Year Ending December 31, 2021 $ 15,116 2022 12,991 2023 10,436 2024 5,545 2025 4,016 Thereafter 11,573 Total lease payments 59,677 Less: imputed interest 6,281 Total lease liability $ 53,396 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In accordance with ASC 460, Guarantees , the Company recognizes the fair value for guarantee and indemnification arrangements it issues or modifies if these arrangements are within the scope of the interpretation. In addition, the Company must continue to monitor the conditions that are subject to the guarantees and indemnifications, as required under the previously existing generally accepted accounting principles, to identify if a loss has occurred. If the Company determines it is probable a loss has occurred, then any estimable loss would be recognized under those guarantees and indemnifications. Under its customer agreements, the Company may agree to indemnify, defend, and hold harmless its customers from and against certain losses, damages, and costs arising from claims alleging that the use of its software infringes the intellectual property of a third-party. Historically, the Company has not been required to pay material amounts in connection with claims asserted under these provisions, and accordingly, the Company has not recorded a liability relating to such provisions. Under its customer agreements, the Company also may represent and warrant to customers that its software will operate substantially in conformance with its documentation, and that the services the Company performs will be performed in a workmanlike manner by personnel reasonably qualified by experience and expertise to perform their assigned tasks. Historically, only minimal costs have been incurred relating to the satisfaction of warranty claims. In addition, from time to time, the Company may guarantee the performance of a contract on behalf of one or more of its subsidiaries, or a subsidiary may guarantee the performance of a contract on behalf of another subsidiary. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans ACI 401(k) Plan The ACI 401(k) Plan is a defined contribution plan covering all domestic employees of the Company. Participants may contribute up to 75% of their annual eligible compensation up to a maximum of $19,500 (for employees who are under the age of 50 on December 31, 2020) or a maximum of $26,000 (for employees aged 50 or older on December 31, 2020). After one year of service, the Company matches 100% of the first 4% of eligible participant contributions and 50% of the next 4% of eligible participant contributions, not to exceed $5,000 per employee annually. Company contributions charged to expense were $6.3 million during the year ended December 31, 2020, and $6.4 million during both the years ended December 31, 2019 and 2018. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following consists of quarterly financial data (in thousands, except per share amounts): Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, Revenues: Software as a service and platform as a service $ 192,950 $ 180,573 $ 190,369 $ 205,288 $ 769,180 License 28,129 50,136 56,773 111,858 246,896 Maintenance 53,280 52,749 53,049 52,619 211,697 Services 17,126 16,452 15,692 17,279 66,549 Total revenues 291,485 299,910 315,883 387,044 1,294,322 Operating expenses: Cost of revenue (1) 165,837 147,346 158,579 150,697 622,459 Research and development 39,024 35,578 33,573 31,118 139,293 Selling and marketing 30,083 24,455 22,154 26,875 103,567 General and administrative 35,926 29,758 37,000 49,784 152,468 Depreciation and amortization 31,898 33,635 33,395 32,863 131,791 Total operating expenses 302,768 270,772 284,701 291,337 1,149,578 Operating income (loss) (11,283) 29,138 31,182 95,707 144,744 Other income (expense): Interest expense (17,171) (14,142) (12,925) (12,392) (56,630) Interest income 2,900 2,954 2,927 2,847 11,628 Other, net (9,758) 2,041 1,356 5,245 (1,116) Total other income (expense) (24,029) (9,147) (8,642) (4,300) (46,118) Income (loss) before income taxes (35,312) 19,991 22,540 91,407 98,626 Income tax expense (benefit) (10,885) 5,916 6,674 24,261 25,966 Net income (loss) $ (24,427) $ 14,075 $ 15,866 $ 67,146 $ 72,660 Earnings (loss) per share Basic $ (0.21) $ 0.12 $ 0.14 $ 0.57 $ 0.62 Diluted $ (0.21) $ 0.12 $ 0.13 $ 0.56 $ 0.62 (1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, Revenues: Software as a service and platform as a service $ 108,557 $ 172,499 $ 192,952 $ 203,661 $ 677,669 License 21,078 52,541 92,058 122,584 288,261 Maintenance 55,111 51,922 52,638 53,738 213,409 Services 21,109 20,656 17,253 19,937 78,955 Total revenues 205,855 297,618 354,901 399,920 1,258,294 Operating expenses: Cost of revenue (1) 114,941 155,240 174,168 173,104 617,453 Research and development 36,194 39,235 36,543 34,601 146,573 Selling and marketing 29,430 32,962 30,417 30,875 123,684 General and administrative 31,517 49,319 27,286 27,174 135,296 Depreciation and amortization 21,866 26,744 31,169 31,753 111,532 Total operating expenses 233,948 303,500 299,583 297,507 1,134,538 Operating income (loss) (28,093) (5,882) 55,318 102,413 123,756 Other income (expense): Interest expense (11,614) (15,323) (18,987) (18,109) (64,033) Interest income 3,033 2,997 2,988 2,949 11,967 Other, net (1,912) 1,402 (2,369) 3,399 520 Total other income (expense) (10,493) (10,924) (18,368) (11,761) (51,546) Income (loss) before income taxes (38,586) (16,806) 36,950 90,652 72,210 Income tax expense (benefit) (12,623) (22,531) 5,136 35,166 5,148 Net income (loss) $ (25,963) $ 5,725 $ 31,814 $ 55,486 $ 67,062 Earnings (loss) per share Basic $ (0.22) $ 0.05 $ 0.27 $ 0.48 $ 0.58 Diluted $ (0.22) $ 0.05 $ 0.27 $ 0.47 $ 0.57 (1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business ACI Worldwide, Inc., a Delaware corporation, and its subsidiaries (collectively referred to as “ACI” or the “Company”) develop, market, install, and support a broad line of software products and services primarily focused on facilitating electronic payments. In addition to its own products, the Company distributes or acts as a sales agent for software developed by third parties. These products and services are used principally by banks, intermediaries, merchants, and billers, both in domestic and international markets. |
Consolidated Financial Statements | Consolidated Financial StatementsThe consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Capital Stock | Capital Stock The Company’s outstanding capital stock consists of a single class of common stock. Each share of common stock is entitled to one vote for each matter subject to a stockholder’s vote and to dividends, if and when declared by the board of directors (the “board”). |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash and cash equivalents includes holdings in checking, savings, money market, and overnight sweep accounts, all of which have daily maturities, as well as time deposits with maturities of three months or less at the date of purchase. The carrying amounts of cash and cash equivalents on the consolidated balance sheets approximate fair value. |
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 AccountsThe 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. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over their estimated useful lives based on asset class. As of December 31, 2020 and 2019, net property and equipment consisted of the following (in thousands): December 31, Useful Lives 2020 2019 Computer and office equipment 3 - 5 years $ 133,346 $ 143,942 Leasehold improvements Lesser of useful life of improvement or remaining life of lease 29,535 33,346 Building and improvements 7 - 30 years 14,588 14,553 Furniture and fixtures 7 years 8,539 12,980 Land Non-depreciable 1,785 1,785 Property and equipment, gross 187,793 206,606 Less: accumulated depreciation (123,059) (136,226) Property and equipment, net $ 64,734 $ 70,380 |
Software | Software Software may be for internal use or for resale. Costs related to certain software, which is for resale, are capitalized in accordance with Accounting Standards Codification (“ASC”) 985-20, Costs of Software to be Sold, Leased, or Marketed , when the resulting product reaches technological feasibility. The Company generally determines technological feasibility when it has a detailed program design that takes product function, feature and technical requirements to their most detailed, logical form and is ready for coding. The Company does not typically capitalize costs related to software for resale as technological feasibility generally coincides with general availability of the software. The Company capitalizes the costs of software developed or obtained for internal use in accordance with ASC 350-40, Internal Use Software . The Company expenses all costs incurred during the preliminary project stage of its development and capitalizes the costs incurred during the application development stage. Costs incurred relating to upgrades and enhancements to the software are capitalized if it is determined that these upgrades or enhancements add additional functionality to the software. Costs incurred during the application development stage include purchased software licenses, implementation costs, consulting costs, and payroll-related costs for projects that qualify for capitalization. All other costs, primarily related to maintenance and minor software fixes, are expensed as incurred. Amortization of software for resale is determined on a product-by-product basis and begins when the product is available for licensing to customers. The annual amortization is computed using the greater of (a) the ratio of current gross revenues to the total of current and future gross revenues expected to be derived from the software or (b) the straight-line method over the remaining estimated useful life of generally five three |
Business Combinations | Business Combinations The Company applies the provisions of ASC 805, Business Combinations , in the accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, it records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships, covenants not to compete and acquired developed technologies, brand awareness and market position, as well as assumptions about the period of time the brand will continue to be used in our product portfolio, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. |
Fair Value | Fair Value ASC 820, Fair Value Measurements and Disclosures , (“ASC 820”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. • Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. 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”) was $424.5 million and $432.0 million as of December 31, 2020 and 2019, 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 and Other Intangibles | Goodwill and Other Intangibles In accordance with 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 using the discounted cash flow valuation model and allocates goodwill to these reporting units using a relative fair value approach. During this assessment, management relies on a number of factors, including operating results, business plans, and anticipated future cash flows. The Company has identified its reportable segments, ACI On Demand and ACI On Premise, as the reporting units. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates, and cash flow projections are the most sensitive and susceptible to change, as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as company-specific risk factors. Operational management, considering industry and company-specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period, assuming a constant WACC and low, long-term growth rates. If the recoverability test indicates potential impairment, the Company calculates an implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in a manner similar to how goodwill is calculated in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to the reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded to write down the carrying value. The calculated fair value substantially exceeded the current carrying value for all reporting units for all periods. Changes in the carrying amount of goodwill attributable to each reporting unit during the year ended December 31, 2020, 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) 370,834 — 370,834 Balance, December 31, 2019 554,617 725,908 1,280,525 Goodwill from acquisitions (1) (299) — (299) Balance, December 31, 2020 $ 554,318 $ 725,908 $ 1,280,226 (1) Goodwill from acquisitions relates to the goodwill recorded, as well as adjustments, for the acquisitions 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 . Other intangible assets, which include customer relationships and trademarks and trade names, are amortized using the straight-line method over periods ranging from four |
Equity Method Investments | 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 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset group may not be recoverable. An impairment loss is recorded if the sum of the future cash flows expected to result from the use of the asset (undiscounted and without interest charges) is less than the carrying amount of the asset. The amount of the impairment charge is measured based upon the fair value of the asset group. |
Treasury Stock | Treasury Stock The Company accounts for shares of its common stock that are repurchased without intent to retire as treasury stock. Such shares are recorded at cost and reflected separately on the consolidated balance sheets as a reduction of stockholders’ equity. The Company issues shares of treasury stock upon exercise of stock options, issuance of restricted share awards and restricted share units, payment of earned performance shares, and for issuances of common stock pursuant to the Company’s employee stock purchase plan. For purposes of determining the cost of the treasury shares re-issued, the Company uses the average cost method. |
Stock-Based Compensation Plans | Stock-Based Compensation Plans In accordance with ASC 718, Compensation – Stock Compensation, ("ASC 718") the Company recognizes stock-based compensation expense for awards that are probable of vesting on a straight-line basis over the requisite service period of the award, which is generally the vesting term. Stock-based compensation expense is recorded in operating expenses depending on where the respective individual’s compensation is recorded. The Company generally utilizes the Black-Scholes option-pricing model to determine the fair value of stock options on the date of grant. To determine the grant date fair value of the supplemental stock options and total shareholder return awards (“TSRs”), a Monte Carlo simulation model was used. The assumptions utilized in the Black-Scholes option-pricing and Monte Carlo simulation models, as well as the description of the plans the stock-based awards are granted under, are described in further detail in Note 6, Stock-Based Compensation Plans . |
Translation of Foreign Currencies | Translation of Foreign Currencies The Company’s foreign subsidiaries typically use the local currency of the countries in which they are located as their functional currency. Their assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average exchange rates during the period. Translation gains and losses are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). Transaction gains and losses, including those related to intercompany accounts, that are not considered to be of a long-term investment nature are included in the determination of net income. Transaction gains and losses, including those related to intercompany accounts, that are considered to be of a long-term investment nature are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). |
Income Taxes | Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
New Accounting Standards Recently Adopted and Recently Issued Accounting Standards Not Yet Effective | New Accounting Standards Recently Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, 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 12, Leases , for further details. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, codified as ASC 326 . Subsequent amendments to the guidance were issued as follows: ASU 2018-19 in November 2018; ASU 2019-04 in April 2019; ASU 2019-05 in May 2019; ASU's 2019-10 and 2019-11 in November 2019; and ASU 2020-02 in February 2020. 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 is required to use a forward-looking expected credit loss model for billed and accrued receivables. The Company adopted ASU 2016-13 as of January 1, 2020. The adoption of ASU 2016-13 did not have a material impact on the consolidated financial statements. In February 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments , which clarifies or improves various financial instruments topics in the accounting standards codification to increase stakeholder awareness. ASU 2020-03 was effective upon issuance and did not have a material impact on the consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The update provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate (“LIBOR”). This guidance includes optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 is effective for all entities as of March 12, 2020, through December 31, 2022, when the reference rate replacement activity is expected to be completed. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform - Scope , which clarified the scope and application of the original guidance. The adoption of ASU 2020-04 did not have an impact on the Company's consolidated financial statements. Recently Issued Accounting Standards Not Yet Effective In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in this update simplify the accounting for income taxes by removing certain exceptions within ASC 740, as well as clarify and simplify other aspects of the accounting for income taxes to promote consistency among reporting entities. ASU 2019-12 is effective for annual and interim periods beginning after December 15, 2020. The adoption of ASU 2019-12 will not have a material impact on the Company's consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, Codification Improvements , which improves the consistency of the codification by including all disclosure related guidance in the appropriate disclosure sections and clarifies application of various provisions in the codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. ASU 2020-10 is effective for annual periods after December 15, 2020, and early application is permitted for any annual or interim period for which financial statements have not been issued. The adoption of ASU 2020-10 will not have a material impact on the Company's consolidated financial statements. |
Earnings Per Share | Basic earnings per share is computed in accordance with ASC 260, Earnings per Share, based on weighted average outstanding common shares. Diluted earnings per share is computed based on basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, RSUs, and certain contingently issuable shares for which performance targets have been achieved. |
Segment Information | The Company reports financial performance based on its segments, ACI On Demand and ACI On Premise, 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 Demand serves the needs of banks, merchants, and billers 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. ACI On Premise serves customers who manage their software on site or through a third-party public cloud environment. 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. 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). |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Other Current Liabilities | The components of other current liabilities are included in the following table (in thousands): December 31, 2020 2019 Operating lease liabilities $ 13,438 $ 15,049 Vendor financed licenses 12,901 9,667 Accrued interest 8,745 9,212 Royalties payable 3,959 6,107 Other 42,569 36,936 Total other current liabilities $ 81,612 $ 76,971 |
Summary of Property and Equipment Estimated Useful Lives and Balances | As of December 31, 2020 and 2019, net property and equipment consisted of the following (in thousands): December 31, Useful Lives 2020 2019 Computer and office equipment 3 - 5 years $ 133,346 $ 143,942 Leasehold improvements Lesser of useful life of improvement or remaining life of lease 29,535 33,346 Building and improvements 7 - 30 years 14,588 14,553 Furniture and fixtures 7 years 8,539 12,980 Land Non-depreciable 1,785 1,785 Property and equipment, gross 187,793 206,606 Less: accumulated depreciation (123,059) (136,226) Property and equipment, net $ 64,734 $ 70,380 |
Summary of Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill attributable to each reporting unit during the year ended December 31, 2020, 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) 370,834 — 370,834 Balance, December 31, 2019 554,617 725,908 1,280,525 Goodwill from acquisitions (1) (299) — (299) Balance, December 31, 2020 $ 554,318 $ 725,908 $ 1,280,226 (1) Goodwill from acquisitions relates to the goodwill recorded, as well as adjustments, for the acquisitions 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 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Total Receivables, Net | Total receivables, net is comprised of the following (in thousands): December 31, 2020 2019 Billed receivables $ 179,177 $ 213,654 Allowance for doubtful accounts (3,912) (5,149) Billed receivables, net 175,265 208,505 Current accrued receivables, net 167,614 150,692 Long-term accrued receivables, net 215,772 213,041 Total accrued receivables, net 383,386 363,733 Total receivables, net $ 558,651 $ 572,238 |
Summary of Allowance for Doubtful Accounts Receivable | The following reflects activity in the Company’s allowance for doubtful accounts receivable for the periods indicated (in thousands): Years Ended December 31, 2020 2019 2018 Balance, beginning of period $ (5,149) $ (3,912) $ (4,799) Provision (increase) decrease 374 (2,561) (1,505) Amounts written off, net of recoveries 941 1,368 2,269 Foreign currency translation adjustments and other (78) (44) 123 Balance, end of period $ (3,912) $ (5,149) $ (3,912) |
Summary of Changes in Deferred Revenue | Changes in deferred revenue were as follows (in thousands): Balance, December 31, 2018 $ 156,135 Deferral of revenue 149,253 Recognition of deferred revenue (187,069) Foreign currency translation 620 Balance, December 31, 2019 118,939 Deferral of revenue 149,363 Recognition of deferred revenue (141,313) Foreign currency translation 2,424 Balance, December 31, 2020 $ 129,413 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Recognized Identified Assets Acquired and Liabilities Assumed | In connection with the acquisition, the Company recorded the following amounts based upon its purchase price allocation as of December 31, 2020 (in thousands, except weighted average useful lives): Amount Weighted Average Useful Lives Current assets: Cash and cash equivalents $ 135 Receivables, net of allowances 17,658 Settlement assets 239,604 Prepaid expenses 317 Other current assets 19,585 Total current assets acquired 277,299 Noncurrent assets: Goodwill 366,508 Software 113,600 7 years Customer relationships 208,500 15 years Trade names 10,900 5 years Other noncurrent assets 3,745 Total assets acquired 980,552 Current liabilities: Accounts payable 6,623 Settlement liabilities 212,892 Employee compensation 1,959 Other current liabilities 3,802 Total current liabilities acquired 225,276 Noncurrent liabilities: Other noncurrent liabilities 1,219 Total liabilities acquired 226,495 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): Years Ended December 31, 2019 2018 Pro forma revenue $ 1,382,957 $ 1,361,729 Pro forma net income $ 82,003 $ 88,428 Pro forma income per share: Basic $ 0.71 $ 0.76 Diluted $ 0.69 $ 0.75 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities on Debt Outstanding | Maturities on debt outstanding at December 31, 2020, are as follows (in thousands): Fiscal Year Ending December 31, 2021 $ 38,950 2022 50,431 2023 69,906 2024 612,823 2025 — Thereafter 400,000 Total $ 1,172,110 |
Summary of Total Debt | Total debt is comprised of the following (in thousands): December 31, 2020 2019 Term loans $ 717,110 $ 756,060 Revolving credit facility 55,000 239,000 5.750% Senior Notes, due August 2026 400,000 400,000 Debt issuance costs (17,103) (21,905) Total debt 1,155,007 1,373,155 Less: current portion of term loans 38,950 38,950 Less: current portion of debt issuance costs (4,685) (4,802) Total long-term debt $ 1,120,742 $ 1,339,007 |
Software and Other Intangible_2
Software and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Carrying Amount and Accumulated Amortization of Software and Other Intangible Assets | The carrying amount and accumulated amortization of the Company's software assets subject to amortization at each balance sheet date are as follows (in thousands): December 31, 2020 December 31, 2019 Gross Carrying Accumulated Amortization Net Balance Gross Carrying Accumulated Amortization Net Balance Software for resale $ 130,261 $ (123,418) $ 6,843 $ 138,823 $ (122,061) $ 16,762 Software for internal use 430,330 (240,717) 189,613 400,065 (182,310) 217,755 Total software $ 560,591 $ (364,135) $ 196,456 $ 538,888 $ (304,371) $ 234,517 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): December 31, 2020 December 31, 2019 Gross Carrying Accumulated Amortization Net Balance Gross Carrying Accumulated Amortization Net Balance Customer relationships $ 512,389 $ (197,787) $ 314,602 $ 507,785 $ (160,775) $ 347,010 Trademarks and trade names 24,115 (16,734) 7,381 27,312 (17,353) 9,959 Total other intangible assets $ 536,504 $ (214,521) $ 321,983 $ 535,097 $ (178,128) $ 356,969 |
Summary of Estimated Intangible Asset Amortization Expense in Future Fiscal Years | Based on capitalized intangible assets as of December 31, 2020, estimated amortization expense amounts in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Software Other Intangible 2021 $ 67,599 $ 37,062 2022 50,179 36,903 2023 32,004 36,564 2024 20,608 32,044 2025 18,354 23,452 Thereafter 7,712 155,958 Total $ 196,456 $ 321,983 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, December 31, 2019 4,006,816 $ 18.18 Exercised (1,756,471) 18.53 Forfeited (57,744) 19.08 Expired (6,090) 18.44 Outstanding, December 31, 2020 2,186,511 $ 17.87 3.96 $ 44,944,958 Exercisable, December 31, 2020 2,039,275 $ 17.72 4.16 $ 42,231,530 |
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 year ended December 31, 2018, were estimated on the date of grant using the Black-Scholes option-pricing model, acceptable under ASC 718, with the following weighted average assumptions: Year Ended December 31, 2018 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 the nonvested LTIP performance shares is as follows: Number of Shares at Weighted Average Nonvested at December 31, 2019 669,469 $ 20.12 Vested (668,240) 20.12 Forfeited (5,368) 20.12 Change in expected attainment 4,139 20.12 Nonvested at December 31, 2020 — $ — |
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 RSAs is as follows: Number of Weighted Average Nonvested at December 31, 2019 92,842 $ 20.13 Vested (88,913) 20.12 Forfeited (3,929) 20.35 Nonvested at December 31, 2020 — $ — |
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 TSRs is as follows: Number of Weighted Average Nonvested as of December 31, 2019 1,062,291 $ 35.77 Granted 677,195 30.01 Vested (199,413) 24.37 Forfeited (158,086) 36.69 Change in payout rate (14,259) 24.37 Nonvested as of December 31, 2020 1,367,728 $ 34.59 |
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 years ended December 31, 2020, 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: Years Ended December 31, 2020 2019 2018 Expected life (years) 2.8 2.8 2.9 Risk-free interest rate 0.5 % 2.5 % 2.4 % Volatility 31.4 % 29.3 % 28.0 % Expected dividend yield — — — |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Nonvested Restricted Share Unit Activity | A summary of nonvested RSUs is as follows: Number of Weighted Average Nonvested as of December 31, 2019 1,009,404 $ 29.96 Granted 816,543 25.72 Vested (431,504) 29.60 Forfeited (276,261) 28.57 Nonvested as of December 31, 2020 1,118,182 $ 27.34 |
Common Stock and Treasury Sto_2
Common Stock and Treasury Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Treasury Shares Issued by Award Type | Treasury shares issued by award type are as follows: Years Ended December 31, 2020 2019 2018 Stock options 1,756,471 854,524 1,379,704 LTIP performance shares 668,240 — — TSRs 199,413 — — RSUs 431,504 259,634 10,000 ESPP 151,542 126,983 148,520 Total treasury shares issued 3,207,170 1,241,141 1,538,224 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Weighted Average Share Amounts used to Compute Both Basic and Diluted Earnings Per Share | The following table reconciles the weighted average share amounts used to compute both basic and diluted earnings per share (in thousands): Years Ended December 31, 2020 2019 2018 Weighted average shares outstanding: Basic weighted average shares outstanding 116,397 116,175 116,057 Add: Dilutive effect of stock options, RSUs, and contingently issuable shares 1,682 2,396 1,575 Diluted weighted average shares outstanding 118,079 118,571 117,632 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Selected Financial Data by Reportable Segment | The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands): Years Ended December 31, 2020 2019 2018 Revenues ACI On Demand $ 769,180 $ 678,960 $ 433,025 ACI On Premise 525,142 579,334 576,755 Total revenue $ 1,294,322 $ 1,258,294 $ 1,009,780 Segment Adjusted EBITDA ACI On Demand $ 149,610 $ 66,501 $ 12,015 ACI On Premise 290,310 321,305 323,902 Depreciation and amortization (140,316) (122,569) (97,350) Stock-based compensation expense (29,602) (36,763) (20,360) Corporate and unallocated expenses (125,258) (104,718) (92,296) Interest, net (45,002) (52,066) (30,388) Other, net (1,116) 520 (3,724) Income before income taxes $ 98,626 $ 72,210 $ 91,799 Depreciation and amortization ACI On Demand $ 40,594 $ 34,395 $ 31,541 ACI On Premise 13,207 11,992 11,634 Corporate 86,515 76,182 54,175 Total depreciation and amortization $ 140,316 $ 122,569 $ 97,350 Stock-based compensation expense ACI On Demand $ 8,852 $ 7,995 $ 4,338 ACI On Premise 8,872 7,651 4,348 Corporate 11,878 21,117 11,674 Total stock-based compensation expense $ 29,602 $ 36,763 $ 20,360 |
Summary 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 for the periods indicated (in thousands): Year Ended December 31, 2020 Year Ended December 31, 2019 ACI On Demand ACI On Premise Total ACI On Demand ACI On Premise Total Primary Geographic Markets Americas - United States $ 687,923 $ 142,588 $ 830,511 $ 609,160 $ 172,660 $ 781,820 Americas - Other 11,561 61,533 73,094 9,350 68,020 77,370 EMEA 58,857 234,369 293,226 50,629 251,035 301,664 Asia Pacific 10,839 86,652 97,491 9,821 87,619 97,440 Total $ 769,180 $ 525,142 $ 1,294,322 $ 678,960 $ 579,334 $ 1,258,294 Primary Solution Categories Bill Payments $ 586,047 $ — $ 586,047 $ 510,300 $ — $ 510,300 Digital Channels 46,269 29,438 75,707 44,731 32,980 77,711 Merchant Payments 84,997 23,730 108,727 77,204 25,693 102,897 Payments Intelligence 40,495 21,570 62,065 36,019 33,790 69,809 Real-Time Payments 3,902 77,158 81,060 3,456 97,153 100,609 Issuing and Acquiring 7,470 373,246 380,716 7,250 389,718 396,968 Total $ 769,180 $ 525,142 $ 1,294,322 $ 678,960 $ 579,334 $ 1,258,294 Year Ended December 31, 2018 ACI On Demand ACI On Premise Total Primary Geographic Markets Americas - United States $ 369,097 $ 131,382 $ 500,479 Americas - Other 9,577 61,969 71,546 EMEA 48,889 296,157 345,046 Asia Pacific 5,462 87,247 92,709 Total $ 433,025 $ 576,755 $ 1,009,780 Primary Solution Categories Bill Payments $ 275,526 $ — $ 275,526 Digital Channels 40,342 35,231 75,573 Merchant Payments 64,956 30,447 95,403 Payments Intelligence 41,330 42,353 83,683 Real-Time Payments 2,193 92,068 94,261 Issuing and Acquiring 8,678 376,656 385,334 Total $ 433,025 $ 576,755 $ 1,009,780 |
Summary of Long-lived Assets by Geographic Location | The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands): December 31, 2020 2019 Long-lived Assets United States $ 1,423,862 $ 1,526,046 Other 750,651 759,501 Total $ 2,174,513 $ 2,285,547 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes | For financial reporting purposes, income before income taxes includes the following components (in thousands): Years Ended December 31, 2020 2019 2018 United States $ 19,405 $ (16,317) $ 16,312 Foreign 79,221 88,527 75,487 Total $ 98,626 $ 72,210 $ 91,799 |
Summary of Income Tax Expense (Benefit) | The expense (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2020 2019 2018 Federal Current $ (2,683) $ 3,738 $ 6,545 Deferred (3,477) (25,150) (6,587) Total (6,160) (21,412) (42) State Current 2,514 590 4,441 Deferred (1,758) 342 (2,649) Total 756 932 1,792 Foreign Current 22,786 22,960 17,626 Deferred 8,584 2,668 3,502 Total 31,370 25,628 21,128 Total $ 25,966 $ 5,148 $ 22,878 |
Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Operations | Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of operations are summarized as follows (in thousands): Years Ended December 31, 2020 2019 2018 Tax expense at federal rate of 21% $ 20,711 $ 15,164 $ 19,278 State income taxes, net of federal benefit 321 1,227 5,246 Change in valuation allowance 2,459 (12,760) 12,657 Foreign tax rate differential (1,809) (2,535) (4,796) Unrecognized tax benefit increase (decrease) (4,405) 898 1,262 Tax effect of foreign operations 11,373 6,698 8,546 Tax benefit of research & development (2,173) (2,506) (2,557) Transition tax — — (8,112) Revaluation of deferred tax balances — — (4,937) Performance-based compensation (2,624) (560) (4,541) Other 2,113 (478) 832 Income tax provision $ 25,966 $ 5,148 $ 22,878 |
Summary of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands): December 31, 2020 2019 Deferred income tax assets: Net operating loss carryforwards $ 20,347 $ 23,030 Tax credits 40,188 47,411 Compensation 18,731 18,791 Deferred revenue 19,169 25,599 Operating lease 10,162 12,956 Other 9,051 8,517 Gross deferred income tax assets 117,648 136,304 Less: valuation allowance (10,112) (7,653) Net deferred income tax assets $ 107,536 $ 128,651 Deferred income tax liabilities: Depreciation and amortization $ (48,967) $ (52,978) Operating lease right-of-use asset (7,650) (11,917) Deferred revenue (33,947) (44,198) Total deferred income tax liabilities (90,564) (109,093) Net deferred income taxes $ 16,972 $ 19,558 Deferred income taxes / liabilities included in the balance sheet are: Deferred income tax asset – noncurrent $ 57,476 $ 51,611 Deferred income tax liability – noncurrent (40,504) (32,053) Net deferred income taxes $ 16,972 $ 19,558 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands): 2020 2019 2018 Balance of unrecognized tax benefits at beginning of year $ 29,000 $ 28,406 $ 27,237 Increases for tax positions of prior years 4,219 2,784 315 Decreases for tax positions of prior years — (96) (61) Increases for tax positions established for the current period 3,912 2,542 1,185 Decreases for settlements with taxing authorities (285) (220) — Reductions resulting from lapse of applicable statute of limitation (12,630) (4,462) (115) Adjustment resulting from foreign currency translation 94 46 (155) Balance of unrecognized tax benefits at end of year $ 24,310 $ 29,000 $ 28,406 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Components of Lease Cost | The components of lease cost are as follows (in thousands): Years Ended December 31, 2020 2019 Operating lease cost $ 25,148 $ 18,486 Variable lease cost 3,588 3,756 Sublease income (134) (528) Total lease cost $ 28,602 $ 21,714 |
Summary of Supplemental Cash Flow Information | Supplemental cash flow information related to leases is as follows (in thousands): Years Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18,827 $ 19,578 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 11,431 $ 10,478 |
Summary of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate): December 31, 2020 2019 Assets: Operating lease right-of-use assets $ 41,243 $ 57,382 Liabilities: Other current liabilities $ 13,438 $ 15,049 Operating lease liabilities 39,958 46,766 Total operating lease liabilities $ 53,396 $ 61,815 Weighted average remaining operating lease term (years) 6.01 6.58 Weighted average operating lease discount rate 3.67 % 4.00 % |
Schedule of Maturities on Lease Liabilities | Maturities on lease liabilities as of December 31, 2020, are as follows (in thousands): Fiscal Year Ending December 31, 2021 $ 15,116 2022 12,991 2023 10,436 2024 5,545 2025 4,016 Thereafter 11,573 Total lease payments 59,677 Less: imputed interest 6,281 Total lease liability $ 53,396 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data (Unaudited) | The following consists of quarterly financial data (in thousands, except per share amounts): Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, Revenues: Software as a service and platform as a service $ 192,950 $ 180,573 $ 190,369 $ 205,288 $ 769,180 License 28,129 50,136 56,773 111,858 246,896 Maintenance 53,280 52,749 53,049 52,619 211,697 Services 17,126 16,452 15,692 17,279 66,549 Total revenues 291,485 299,910 315,883 387,044 1,294,322 Operating expenses: Cost of revenue (1) 165,837 147,346 158,579 150,697 622,459 Research and development 39,024 35,578 33,573 31,118 139,293 Selling and marketing 30,083 24,455 22,154 26,875 103,567 General and administrative 35,926 29,758 37,000 49,784 152,468 Depreciation and amortization 31,898 33,635 33,395 32,863 131,791 Total operating expenses 302,768 270,772 284,701 291,337 1,149,578 Operating income (loss) (11,283) 29,138 31,182 95,707 144,744 Other income (expense): Interest expense (17,171) (14,142) (12,925) (12,392) (56,630) Interest income 2,900 2,954 2,927 2,847 11,628 Other, net (9,758) 2,041 1,356 5,245 (1,116) Total other income (expense) (24,029) (9,147) (8,642) (4,300) (46,118) Income (loss) before income taxes (35,312) 19,991 22,540 91,407 98,626 Income tax expense (benefit) (10,885) 5,916 6,674 24,261 25,966 Net income (loss) $ (24,427) $ 14,075 $ 15,866 $ 67,146 $ 72,660 Earnings (loss) per share Basic $ (0.21) $ 0.12 $ 0.14 $ 0.57 $ 0.62 Diluted $ (0.21) $ 0.12 $ 0.13 $ 0.56 $ 0.62 (1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, Revenues: Software as a service and platform as a service $ 108,557 $ 172,499 $ 192,952 $ 203,661 $ 677,669 License 21,078 52,541 92,058 122,584 288,261 Maintenance 55,111 51,922 52,638 53,738 213,409 Services 21,109 20,656 17,253 19,937 78,955 Total revenues 205,855 297,618 354,901 399,920 1,258,294 Operating expenses: Cost of revenue (1) 114,941 155,240 174,168 173,104 617,453 Research and development 36,194 39,235 36,543 34,601 146,573 Selling and marketing 29,430 32,962 30,417 30,875 123,684 General and administrative 31,517 49,319 27,286 27,174 135,296 Depreciation and amortization 21,866 26,744 31,169 31,753 111,532 Total operating expenses 233,948 303,500 299,583 297,507 1,134,538 Operating income (loss) (28,093) (5,882) 55,318 102,413 123,756 Other income (expense): Interest expense (11,614) (15,323) (18,987) (18,109) (64,033) Interest income 3,033 2,997 2,988 2,949 11,967 Other, net (1,912) 1,402 (2,369) 3,399 520 Total other income (expense) (10,493) (10,924) (18,368) (11,761) (51,546) Income (loss) before income taxes (38,586) (16,806) 36,950 90,652 72,210 Income tax expense (benefit) (12,623) (22,531) 5,136 35,166 5,148 Net income (loss) $ (25,963) $ 5,725 $ 31,814 $ 55,486 $ 67,062 Earnings (loss) per share Basic $ (0.22) $ 0.05 $ 0.27 $ 0.48 $ 0.58 Diluted $ (0.22) $ 0.05 $ 0.27 $ 0.47 $ 0.57 (1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Jul. 23, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Summary of Significant Accounting Policies [Line Items] | ||||
Amount of off balance sheet settlement funds | $ 246,800 | $ 274,000 | ||
Operating lease right-of-use assets | 41,243 | 57,382 | ||
Operating lease liability | $ 53,396 | 61,815 | ||
Accounting Standards Update 2016-02 | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Operating lease right-of-use assets | $ 63,300 | |||
Operating lease liability | $ 68,600 | |||
Level 2 | Senior Notes | 5.750% Senior Notes due 2026 | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Stated interest rate (percentage) | 5.75% | |||
Fair value of long-term debt | $ 424,500 | 432,000 | ||
India Payment Technology and Services Company | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Payments to acquire investment interest | $ 18,300 | |||
Percentage of voting interests acquired | 30.00% | |||
India Payment Technology and Services Company | Other Noncurrent Assets | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Equity method investment, carrying amount | $ 19,300 | $ 18,500 | ||
Software for resale | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 5 years | |||
Software for resale | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 10 years | |||
Software for internal use | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Software for internal use | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 8 years | |||
Other intangible assets | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 4 years | |||
Other intangible assets | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 20 years |
Nature of Business and Summar_5
Nature of Business and Summary of Significant Accounting Policies - Summary of Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Current Liabilities | ||
Operating lease liabilities | $ 13,438 | $ 15,049 |
Vendor financed licenses | 12,901 | 9,667 |
Accrued interest | 8,745 | 9,212 |
Royalties payable | 3,959 | 6,107 |
Other | 42,569 | 36,936 |
Total other current liabilities | $ 81,612 | $ 76,971 |
Nature of Business and Summar_6
Nature of Business and Summary of Significant Accounting Policies - Summary of Property and Equipment Estimated Useful Lives and Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 187,793 | $ 206,606 |
Less: accumulated depreciation | (123,059) | (136,226) |
Property and equipment, net | 64,734 | 70,380 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 133,346 | 143,942 |
Computer and office equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Computer and office equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 29,535 | 33,346 |
Useful Lives, description | Lesser of useful life of improvement or remaining life of lease | |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,588 | 14,553 |
Building and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Building and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 30 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,539 | 12,980 |
Useful Lives | 7 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,785 | $ 1,785 |
Useful Lives, description | Non-depreciable |
Nature of Business and Summar_7
Nature of Business and Summary of Significant Accounting Policies - Summary of Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Gross Balance, prior to beginning of period | $ 957,123 | ||
Total impairment prior to beginning of period | (47,432) | ||
Goodwill [Roll Forward] | |||
Balance, beginning of period | $ 1,280,525 | $ 909,691 | |
Goodwill from acquisitions | 370,834 | ||
Goodwill from acquisitions, subsequent adjustment | (299) | ||
Balance, end of period | 1,280,226 | 1,280,525 | |
ACI On Demand | |||
Goodwill [Line Items] | |||
Gross Balance, prior to beginning of period | 183,783 | ||
Total impairment prior to beginning of period | 0 | ||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 554,617 | 183,783 | |
Goodwill from acquisitions | 370,834 | ||
Goodwill from acquisitions, subsequent adjustment | (299) | ||
Balance, end of period | 554,318 | 554,617 | |
ACI On Premise | |||
Goodwill [Line Items] | |||
Gross Balance, prior to beginning of period | 773,340 | ||
Total impairment prior to beginning of period | $ (47,432) | ||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 725,908 | 725,908 | |
Goodwill from acquisitions | 0 | ||
Goodwill from acquisitions, subsequent adjustment | 0 | ||
Balance, end of period | $ 725,908 | $ 725,908 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue [Line Items] | ||
Software license arrangements, warranty period | 90 days | |
Software license arrangements, initial post contract customer support period | 1 year | |
Revenue allocated to remaining performance obligations | $ 846.9 | |
Revenue allocated to remaining performance obligations, percentage to be recognized over the next 12 months | 50.00% | |
Performance obligation satisfied in previous periods | $ 39.3 | |
Costs to Obtain a Contract | ||
Revenue [Line Items] | ||
Capitalized costs to obtain or fulfill a contract, minimum amortization period | 1 year | |
Capitalized costs to obtain or fulfill a contract, current | $ 1.3 | $ 0.5 |
Capitalized costs to obtain or fulfill a contract, noncurrent | 6.2 | 6.9 |
Costs to Obtain a Contract | Selling and Marketing | ||
Revenue [Line Items] | ||
Capitalized costs to obtain or fulfill a contract, amortization expense | 4.7 | 6.6 |
Costs to Fulfill a Contract | ||
Revenue [Line Items] | ||
Capitalized costs to obtain or fulfill a contract, current | 0.1 | 0.2 |
Capitalized costs to obtain or fulfill a contract, noncurrent | 9.5 | 10.2 |
Costs to Fulfill a Contract | Cost of Revenue | ||
Revenue [Line Items] | ||
Capitalized costs to obtain or fulfill a contract, amortization expense | $ 4.4 | $ 5.9 |
Revenue - Summary of Total Rece
Revenue - Summary of Total Receivables, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||||
Billed receivables | $ 179,177 | $ 213,654 | ||
Allowance for doubtful accounts | (3,912) | (5,149) | $ (3,912) | $ (4,799) |
Billed receivables, net | 175,265 | 208,505 | ||
Current accrued receivables, net | 167,614 | 150,692 | ||
Long-term accrued receivables, net | 215,772 | 213,041 | ||
Total accrued receivables, net | 383,386 | 363,733 | ||
Total receivables, net | $ 558,651 | $ 572,238 |
Revenue - Summary of Allowance
Revenue - Summary of Allowance for Doubtful Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | $ (5,149) | $ (3,912) | $ (4,799) |
Provision (increase) decrease | 374 | (2,561) | (1,505) |
Amounts written off, net of recoveries | 941 | 1,368 | 2,269 |
Foreign currency translation adjustments and other | (78) | (44) | 123 |
Balance, end of period | $ (3,912) | $ (5,149) | $ (3,912) |
Revenue - Summary of Changes in
Revenue - Summary of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Deferred revenue, beginning balance | $ 118,939 | $ 156,135 |
Deferral of revenue | 149,363 | 149,253 |
Recognition of deferred revenue | (141,313) | (187,069) |
Foreign currency translation | 2,424 | 620 |
Deferred revenue, ending balance | $ 129,413 | $ 118,939 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) customer in Thousands | Oct. 01, 2019USD ($) | May 09, 2019USD ($)customer | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Apr. 05, 2019USD ($) |
Revolving Credit Facility | Credit Agreement | |||||
Business Acquisition [Line Items] | |||||
Line of credit, carrying amount | $ 55,000,000 | ||||
RevChip and Transend | |||||
Business Acquisition [Line Items] | |||||
Asset acquisition purchase price | $ 7,000,000 | ||||
SpeedPay | |||||
Business Acquisition [Line Items] | |||||
Acquisition purchase price | $ 754,100,000 | ||||
Acquisition-related costs | $ 22,200,000 | ||||
Acquisition-related revenue | $ 329,200,000 | 227,700,000 | |||
Acquisition-related operating income | $ 24,900,000 | ||||
SpeedPay | Delayed Draw Term Loan | Credit Agreement | Bank of America | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | ||||
SpeedPay | Revolving Credit Facility | Credit Agreement | Bank of America | |||||
Business Acquisition [Line Items] | |||||
Line of credit, carrying amount | $ 250,000,000 | ||||
SpeedPay | U.S | |||||
Business Acquisition [Line Items] | |||||
Number of customers | customer | 4 |
Acquisition - Schedule of Recog
Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noncurrent assets: | |||
Goodwill | $ 1,280,226 | $ 1,280,525 | $ 909,691 |
SpeedPay | |||
Current assets: | |||
Cash and cash equivalents | 135 | ||
Receivables, net of allowances | 17,658 | ||
Settlement assets | 239,604 | ||
Prepaid expenses | 317 | ||
Other current assets | 19,585 | ||
Total current assets acquired | 277,299 | ||
Noncurrent assets: | |||
Goodwill | 366,508 | ||
Other noncurrent assets | 3,745 | ||
Total assets acquired | 980,552 | ||
Current liabilities: | |||
Accounts payable | 6,623 | ||
Settlement liabilities | 212,892 | ||
Employee compensation | 1,959 | ||
Other current liabilities | 3,802 | ||
Total current liabilities acquired | 225,276 | ||
Noncurrent liabilities: | |||
Other noncurrent liabilities | 1,219 | ||
Total liabilities acquired | 226,495 | ||
Net assets acquired | 754,057 | ||
SpeedPay | Software | |||
Noncurrent assets: | |||
Finite-lived intangibles assets | $ 113,600 | ||
Weighted Average Useful Lives | 7 years | ||
SpeedPay | Customer relationships | |||
Noncurrent assets: | |||
Finite-lived intangibles assets | $ 208,500 | ||
Weighted Average Useful Lives | 15 years | ||
SpeedPay | Trade names | |||
Noncurrent assets: | |||
Finite-lived intangibles 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 | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Pro forma revenue | $ 1,382,957 | $ 1,361,729 |
Pro forma net income | $ 82,003 | $ 88,428 |
Pro forma income per share: | ||
Basic (in dollars per share) | $ 0.71 | $ 0.76 |
Diluted (in dollars per share) | $ 0.69 | $ 0.75 |
Debt - Additional Information (
Debt - Additional Information (Details) | Apr. 05, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 12, 2020USD ($) | Aug. 21, 2018USD ($) | Feb. 24, 2017 |
Debt Instrument [Line Items] | |||||||
Long-term debt, amount outstanding | $ 1,172,110,000 | ||||||
Payment for debt issuance costs | $ 0 | $ (12,830,000) | $ (7,319,000) | ||||
Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate (percentage) | 2.15% | ||||||
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 | $ 55,000,000 | ||||||
Unused borrowings | 443,500,000 | ||||||
Debt instrument, term | 5 years | ||||||
Credit facility, maximum borrowing capacity | $ 500,000,000 | $ 498,500,000 | |||||
Revolving Credit Facility | Credit Agreement | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Unused borrowings | 1,500,000 | $ 1,500,000 | |||||
Term Loans | Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, amount outstanding | 717,100,000 | ||||||
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 | 500,000,000 | |||||
Payment for debt issuance costs | (12,800,000) | ||||||
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 | ||||||
Payment for debt issuance costs | $ (7,300,000) | ||||||
Issue price percentage of senior notes of the principal amount | 100.00% | ||||||
Stated interest rate (percentage) | 5.75% | ||||||
Senior Notes | 6.375% Senior Notes, due August 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (percentage) | 6.375% | ||||||
Line of Credit | Overdraft Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, amount available | 100,000,000 | ||||||
Line of credit facility, amount outstanding | $ 0 | 1,500,000 | |||||
Line of Credit | Overdraft Facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.25% | ||||||
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 | $ 7,800,000 | 13,800,000 | |||||
Other | Multi-year License Agreement | Other Current Liabilities | |||||||
Debt Instrument [Line Items] | |||||||
Other long-term debt, current | 5,600,000 | 6,000,000 | |||||
Other | Multi-year License Agreement | Other Noncurrent Liabilities | |||||||
Debt Instrument [Line Items] | |||||||
Other long-term debt, noncurrent | $ 2,200,000 | $ 7,800,000 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities on Long-Term Debt Outstanding (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 38,950 |
2022 | 50,431 |
2023 | 69,906 |
2024 | 612,823 |
2025 | 0 |
Thereafter | 400,000 |
Total | $ 1,172,110 |
Debt - Summary of Total Debt (D
Debt - Summary of Total Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 21, 2018 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,155,007 | $ 1,373,155 | |
Debt issuance costs | (17,103) | (21,905) | |
Less: current portion of term loans | 34,265 | 34,148 | |
Less: current portion of debt issuance costs | (4,685) | (4,802) | |
Total long-term debt | 1,120,742 | 1,339,007 | |
Term Loans | |||
Debt Instrument [Line Items] | |||
Total debt | 717,110 | 756,060 | |
Less: current portion of term loans | 38,950 | 38,950 | |
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total debt | 55,000 | 239,000 | |
Senior Notes | 5.750% Senior Notes, due August 2026 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 400,000 | $ 400,000 | |
Stated interest rate (percentage) | 5.75% |
Software and Other Intangible_3
Software and Other Intangible Assets - Summary of Carrying Amount and Accumulated Amortization of Software Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 560,591 | $ 538,888 | |
Accumulated Amortization | (364,135) | (304,371) | |
Net Balance | 196,456 | 234,517 | |
Software for resale | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 130,261 | 138,823 | |
Accumulated Amortization | (123,418) | (122,061) | |
Net Balance | 6,843 | 16,762 | |
Software amortization expense | 8,500 | 11,000 | $ 12,800 |
Software for internal use | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 430,330 | 400,065 | |
Accumulated Amortization | (240,717) | (182,310) | |
Net Balance | 189,613 | 217,755 | |
Software amortization expense | $ 70,000 | $ 55,600 | $ 41,700 |
Software and Other Intangible_4
Software and Other Intangible Assets - Summary of Carrying Amount and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 536,504 | $ 535,097 | |
Accumulated Amortization | (214,521) | (178,128) | |
Total | 321,983 | 356,969 | |
Other intangible assets amortization expense | 37,100 | 31,900 | $ 19,000 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 512,389 | 507,785 | |
Accumulated Amortization | (197,787) | (160,775) | |
Total | 314,602 | 347,010 | |
Trademarks and trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 24,115 | 27,312 | |
Accumulated Amortization | (16,734) | (17,353) | |
Total | $ 7,381 | $ 9,959 |
Software and Other Intangible_5
Software and Other Intangible Assets - Summary of Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 321,983 | $ 356,969 |
Software Amortization | ||
Finite-Lived Intangible Assets [Line Items] | ||
2021 | 67,599 | |
2022 | 50,179 | |
2023 | 32,004 | |
2024 | 20,608 | |
2025 | 18,354 | |
Thereafter | 7,712 | |
Total | 196,456 | |
Other Intangible Assets Amortization | ||
Finite-Lived Intangible Assets [Line Items] | ||
2021 | 37,062 | |
2022 | 36,903 | |
2023 | 36,564 | |
2024 | 32,044 | |
2025 | 23,452 | |
Thereafter | 155,958 | |
Total | $ 321,983 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 09, 2020 | Jun. 14, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 29,602,000 | $ 36,763,000 | $ 20,360,000 | ||
Stock-based compensation expense, tax benefits | 5,400,000 | 5,900,000 | $ 3,900,000 | ||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value of stock options granted (in dollars per share) | $ 7.03 | ||||
Total intrinsic value of stock options exercised | 19,500,000 | 16,000,000 | $ 15,800,000 | ||
Unrecognized compensation costs | $ 100,000 | ||||
Unrecognized compensation costs, weighted average recognition periods | 2 months 12 days | ||||
Stock Options | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of award | 1 year | ||||
Stock Options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of award | 10 years | ||||
LTIP Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation awards, award payout range, maximum | 200.00% | ||||
Number of shares vested | 668,240 | ||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 165,237 | ||||
LTIP Performance Shares | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 1 year | ||||
LTIP Performance Shares | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 3 years | ||||
Restricted Share Awards (RSAs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares vested | 88,913 | ||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 28,233 | ||||
Requisite service period | 3 years | ||||
Award vesting rights, incremental vesting percentage on anniversary of grant date | 33.00% | ||||
Total Shareholder Return Awards (TSRs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period | 3 years | ||||
Stock based compensation awards, award payout range, minimum | 0.00% | ||||
Stock based compensation awards, award payout range, maximum | 200.00% | ||||
Number of shares vested | 199,413 | ||||
Performance shares payout rate | 93.00% | ||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 53,033 | ||||
Unrecognized compensation costs | $ 17,600,000 | ||||
Unrecognized compensation costs, weighted average recognition periods | 1 year 10 months 24 days | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares vested | 431,504 | ||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 121,564 | ||||
Requisite service period | 3 years | ||||
Award vesting rights, incremental vesting percentage on anniversary of grant date | 33.00% | ||||
Unrecognized compensation costs | $ 18,900,000 | ||||
Unrecognized compensation costs, weighted average recognition periods | 1 year 9 months 18 days | ||||
Restricted Stock Units (RSUs) | Board Member | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
2017 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares of common stock reserved for issuance | 3,000,000 | ||||
Purchase of common stock under the plan, employee annual base compensation, amount | $ 25,000 | ||||
Purchase of common stock under the plan, employee annual base compensation, percentage | 10.00% | ||||
Price of common stock purchased under ESPP, percentage | 85.00% | ||||
Discount offered pursuant to ESPP, percentage | 15.00% | ||||
Stock-based compensation expense | $ 700,000 | $ 600,000 | $ 500,000 | ||
2020 Equity and Incentive Compensation Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant | 6,658,754 | ||||
2016 Equity and Performance Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares of common stock reserved for issuance | 8,000,000 | ||||
Maximum aggregate number of shares allowed per participant during any calendar year | 3,000,000 | ||||
Maximum aggregate value allowed per participant on the date of grant during any calendar year | $ 9,000,000 | ||||
2005 Equity and Performance Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares of common stock reserved for issuance | 23,250,000 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Summary of Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 4,006,816 |
Exercised (in shares) | shares | (1,756,471) |
Forfeited (in shares) | shares | (57,744) |
Expired (in shares) | shares | (6,090) |
Outstanding, ending balance (in shares) | shares | 2,186,511 |
Exercisable, ending balance (in shares) | shares | 2,039,275 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 18.18 |
Exercised (in dollars per share) | $ / shares | 18.53 |
Forfeited (in dollars per share) | $ / shares | 19.08 |
Expired (in dollars per share) | $ / shares | 18.44 |
Ending balance (in dollars per share) | $ / shares | 17.87 |
Weighted average exercise price, exercisable, ending balance (in dollars per share) | $ / shares | $ 17.72 |
Weighted Average Remaining Contractual Term (Years) | |
Weighted average remaining contractual term, outstanding, end of period (in years) | 3 years 11 months 15 days |
Weighted average remaining contractual term, exercisable, end of period (in years) | 4 years 1 month 28 days |
Aggregate Intrinsic Value of In-the-Money Options | |
Aggregate intrinsic value of in-the-money options, outstanding, end of period | $ | $ 44,944,958 |
Aggregate intrinsic value of in-the-money options, exercisable, end of period | $ | $ 42,231,530 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Summary of Grant Date Fair Value Weighted Average Assumptions - Options (Details) - Black-Scholes Option-Pricing Model - Stock Options | 12 Months Ended |
Dec. 31, 2019 | |
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_5
Stock-Based Compensation Plans - Summary of Nonvested LTIP Performance Shares (Details) - LTIP Performance Shares | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of Shares at Expected Attainment | |
Nonvested, beginning balance (in shares) | shares | 669,469 |
Vested (in shares) | shares | (668,240) |
Forfeited (in shares) | shares | (5,368) |
Change in expected attainment (in shares) | shares | 4,139 |
Nonvested, ending balance (in shares) | shares | 0 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 20.12 |
Vested (in dollars per share) | $ / shares | 20.12 |
Forfeited (in dollars per share) | $ / shares | 20.12 |
Change in expected attainment (in dollars per share) | $ / shares | 20.12 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 0 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Summary of Nonvested RSAs (Details) - Restricted Share Awards (RSAs) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of Shares | |
Nonvested, beginning balance (in shares) | shares | 92,842 |
Vested (in shares) | shares | (88,913) |
Forfeited (in shares) | shares | (3,929) |
Nonvested, ending balance (in shares) | shares | 0 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 20.13 |
Vested (in dollars per share) | $ / shares | 20.12 |
Forfeited (in dollars per share) | $ / shares | 20.35 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 0 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Summary of Nonvested TSRs (Details) - Total Shareholder Return Awards (TSRs) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of Shares at Expected Attainment | |
Nonvested, beginning balance (in shares) | shares | 1,062,291 |
Granted (in shares) | shares | 677,195 |
Vested (in shares) | shares | (199,413) |
Forfeited (in shares) | shares | (158,086) |
Change in payout rate (in shares) | shares | (14,259) |
Nonvested, ending balance (in shares) | shares | 1,367,728 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 35.77 |
Granted (in dollars per share) | $ / shares | 30.01 |
Vested (in dollars per share) | $ / shares | 24.37 |
Forfeited (in dollars per share) | $ / shares | 36.69 |
Change in payout rate (in dollars per share) | $ / shares | 24.37 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 34.59 |
Stock-Based Compensation Plan_8
Stock-Based Compensation Plans - Summary of Grant Date Fair Value Weighted Average Assumptions - TSRs (Details) - Total Shareholder Return Awards (TSRs) - Monte Carlo Simulation Model | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 2 years 9 months 18 days | 2 years 9 months 18 days | 2 years 10 months 24 days |
Risk-free interest rate | 0.50% | 2.50% | 2.40% |
Expected volatility | 31.40% | 29.30% | 28.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation Plan_9
Stock-Based Compensation Plans - Summary of Nonvested RSUs (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of Shares | |
Nonvested, beginning balance (in shares) | shares | 1,009,404 |
Granted (in shares) | shares | 816,543 |
Vested (in shares) | shares | (431,504) |
Forfeited (in shares) | shares | (276,261) |
Nonvested, ending balance (in shares) | shares | 1,118,182 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 29.96 |
Granted (in dollars per share) | $ / shares | 25.72 |
Vested (in dollars per share) | $ / shares | 29.60 |
Forfeited (in dollars per share) | $ / shares | 28.57 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 27.34 |
Common Stock and Treasury Sto_3
Common Stock and Treasury Stock - Additional Information (Details) - USD ($) | 12 Months Ended | 34 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Feb. 28, 2018 | |
Equity [Abstract] | |||||
Repurchase program, amount approved for repurchase | $ 200,000,000 | ||||
Repurchase program, shares repurchased (in shares) | 1,000,000 | 1,228,102 | 2,346,427 | 46,357,495 | |
Repurchase program, shares repurchased, value | $ 28,881,000 | $ 35,617,000 | $ 54,527,000 | $ 612,300,000 | |
Repurchase program, maximum remaining amont authorized for purchase | $ 112,100,000 | $ 112,100,000 |
Common Stock and Treasury Sto_4
Common Stock and Treasury Stock - Class of Treasury Stock (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Treasury shares issued (in shares) | 3,207,170 | 1,241,141 | 1,538,224 |
Stock Options | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury shares issued (in shares) | 1,756,471 | 854,524 | 1,379,704 |
Long-term Incentive Program Performance Share Awards (LTIPs) | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury shares issued (in shares) | 668,240 | 0 | 0 |
Total Shareholder Return Awards (TSRs) | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury shares issued (in shares) | 199,413 | 0 | 0 |
Restricted Stock Units (RSUs) | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury shares issued (in shares) | 431,504 | 259,634 | 10,000 |
Employee Stock Purchase Plan (ESPP) | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury shares issued (in shares) | 151,542 | 126,983 | 148,520 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Average Share Amounts used to Compute Both Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted average shares outstanding: | |||
Basic weighted average shares outstanding (in shares) | 116,397 | 116,175 | 116,057 |
Add: Dilutive effect of stock options, RSUs, and contingently issuable shares (in shares) | 1,682 | 2,396 | 1,575 |
Diluted weighted average shares outstanding (in shares) | 118,079 | 118,571 | 117,632 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from earnings (loss) per share, options to purchase shares, RSUs, and contingently issuable shares (in shares) | 1,500,000 | 1,800,000 | 2,200,000 |
Common stock outstanding (in shares) | 117,112,185 | 115,986,352 |
Other, Net - Additional Informa
Other, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||||||||||
Other income (expense), net | $ 5,245 | $ 1,356 | $ 2,041 | $ (9,758) | $ 3,399 | $ (2,369) | $ 1,402 | $ (1,912) | $ (1,116) | $ 520 | $ (3,724) |
Segment Information - Selected
Segment Information - Selected Financial Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 1,294,322 | $ 1,258,294 | $ 1,009,780 | ||||||||
Depreciation and amortization | 140,316 | 122,569 | 97,350 | ||||||||
Stock-based compensation expense | 29,602 | 36,763 | 20,360 | ||||||||
Corporate and unallocated expenses | (125,258) | (104,718) | (92,296) | ||||||||
Interest, net | (45,002) | (52,066) | (30,388) | ||||||||
Other, net | $ 5,245 | $ 1,356 | $ 2,041 | $ (9,758) | $ 3,399 | $ (2,369) | $ 1,402 | $ (1,912) | (1,116) | 520 | (3,724) |
Income before income taxes | $ 91,407 | $ 22,540 | $ 19,991 | $ (35,312) | $ 90,652 | $ 36,950 | $ (16,806) | $ (38,586) | 98,626 | 72,210 | 91,799 |
Operating Segments | ACI On Demand | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 769,180 | 678,960 | 433,025 | ||||||||
Segment Adjusted EBITDA | 149,610 | 66,501 | 12,015 | ||||||||
Depreciation and amortization | 40,594 | 34,395 | 31,541 | ||||||||
Stock-based compensation expense | 8,852 | 7,995 | 4,338 | ||||||||
Operating Segments | ACI On Premise | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 525,142 | 579,334 | 576,755 | ||||||||
Segment Adjusted EBITDA | 290,310 | 321,305 | 323,902 | ||||||||
Depreciation and amortization | 13,207 | 11,992 | 11,634 | ||||||||
Stock-based compensation expense | 8,872 | 7,651 | 4,348 | ||||||||
Corporate and other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 86,515 | 76,182 | 54,175 | ||||||||
Stock-based compensation expense | $ 11,878 | $ 21,117 | $ 11,674 |
Segment Information - Selecte_2
Segment Information - Selected Financial Data, Revenues and Long lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 1,294,322 | $ 1,258,294 | $ 1,009,780 |
Long lived assets | |||
Long-lived Assets | 2,174,513 | 2,285,547 | |
Bill Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 586,047 | 510,300 | 275,526 |
Digital Channels | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 75,707 | 77,711 | 75,573 |
Merchant Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 108,727 | 102,897 | 95,403 |
Payments Intelligence | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 62,065 | 69,809 | 83,683 |
Real-Time Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 81,060 | 100,609 | 94,261 |
Issuing and Acquiring | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 380,716 | 396,968 | 385,334 |
Americas - United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 830,511 | 781,820 | 500,479 |
Long lived assets | |||
Long-lived Assets | 1,423,862 | 1,526,046 | |
Americas - Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 73,094 | 77,370 | 71,546 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 293,226 | 301,664 | 345,046 |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 97,491 | 97,440 | 92,709 |
Other | |||
Long lived assets | |||
Long-lived Assets | 750,651 | 759,501 | |
Operating Segments | ACI On Demand | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 769,180 | 678,960 | 433,025 |
Operating Segments | ACI On Demand | Bill Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 586,047 | 510,300 | 275,526 |
Operating Segments | ACI On Demand | Digital Channels | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 46,269 | 44,731 | 40,342 |
Operating Segments | ACI On Demand | Merchant Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 84,997 | 77,204 | 64,956 |
Operating Segments | ACI On Demand | Payments Intelligence | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 40,495 | 36,019 | 41,330 |
Operating Segments | ACI On Demand | Real-Time Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 3,902 | 3,456 | 2,193 |
Operating Segments | ACI On Demand | Issuing and Acquiring | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 7,470 | 7,250 | 8,678 |
Operating Segments | ACI On Premise | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 525,142 | 579,334 | 576,755 |
Operating Segments | ACI On Premise | Bill Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | 0 |
Operating Segments | ACI On Premise | Digital Channels | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 29,438 | 32,980 | 35,231 |
Operating Segments | ACI On Premise | Merchant Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 23,730 | 25,693 | 30,447 |
Operating Segments | ACI On Premise | Payments Intelligence | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 21,570 | 33,790 | 42,353 |
Operating Segments | ACI On Premise | Real-Time Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 77,158 | 97,153 | 92,068 |
Operating Segments | ACI On Premise | Issuing and Acquiring | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 373,246 | 389,718 | 376,656 |
Operating Segments | Americas - United States | ACI On Demand | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 687,923 | 609,160 | 369,097 |
Operating Segments | Americas - United States | ACI On Premise | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 142,588 | 172,660 | 131,382 |
Operating Segments | Americas - Other | ACI On Demand | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 11,561 | 9,350 | 9,577 |
Operating Segments | Americas - Other | ACI On Premise | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 61,533 | 68,020 | 61,969 |
Operating Segments | EMEA | ACI On Demand | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 58,857 | 50,629 | 48,889 |
Operating Segments | EMEA | ACI On Premise | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 234,369 | 251,035 | 296,157 |
Operating Segments | Asia Pacific | ACI On Demand | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 10,839 | 9,821 | 5,462 |
Operating Segments | Asia Pacific | ACI On Premise | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 86,652 | $ 87,619 | $ 87,247 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax Act: | ||||
U.S. federal corporate income tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
Tax Act, provisional tax charge | $ 15,000 | |||
Tax Act, provisional tax charge, subsequent adjustment | $ 4,900 | |||
Tax Act, one-time transition tax on certain unremitted foreign earnings | 20,900 | |||
Tax Act, one-time transition tax on certain unremitted foreign earnings, subsequent adjustment | 8,100 | |||
Valuation Allowance: | ||||
Other | $ 9,051 | $ 8,517 | ||
Tax credits | 40,188 | 47,411 | ||
Valuation allowance, deferred tax asset, increase (decrease) in amount during the period | (12,800) | |||
Income Tax Uncertainties: | ||||
Unrecognized tax benefit | 24,310 | 29,000 | 28,406 | $ 27,237 |
Net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate | 23,200 | 28,200 | ||
Increase (decrease) in unrecognized tax benefits due to the settlement of various audits and the expiration of statutes of limitations | (3,600) | |||
Accrued interest and penalties related to income tax liabilities | 1,200 | 1,200 | ||
Aggregate amount of interest and penalties expense (benefit) recorded in the statement of operations | 100 | 200 | (100) | |
Revision of Prior Period, Reclassification, Adjustment | Deferred Tax Assets, Operating Lease | ||||
Valuation Allowance: | ||||
Other | 13,000 | |||
Revision of Prior Period, Reclassification, Adjustment | Deferred Tax Liabilities, Operating Lease Right-Of-Use Asset | ||||
Valuation Allowance: | ||||
Other | 11,900 | |||
Revision of Prior Period, Reclassification, Adjustment | Deferred Tax Assets, Other | ||||
Valuation Allowance: | ||||
Tax credits | 5,500 | |||
Other Noncurrent Liabilities | ||||
Income Tax Uncertainties: | ||||
Unrecognized tax benefit | 17,700 | 22,400 | ||
Foreign | ||||
Valuation Allowance: | ||||
Valuation allowance, deferred tax asset, increase (decrease) in amount during the period | $ (15,500) | $ 15,500 | ||
Operating Loss Carryforwards: | ||||
Operating loss carryforwards | 25,000 | |||
Operating loss carryforwards, valuation allowance | 700 | |||
Operating loss carryforwards, not subject to expiration | $ 22,800 | |||
Operating loss carryforwards, expiration period | 10 years | |||
Tax Credit Carryforward: | ||||
Tax credit carryfoward | $ 38,900 | |||
Tax credit carryforward, valuation allowance | 2,300 | |||
Domestic Federal | ||||
Operating Loss Carryforwards: | ||||
Operating loss carryforwards | 59,900 | |||
Domestic Federal | General Business Tax Credit Carryforward | ||||
Tax Credit Carryforward: | ||||
Tax credit carryfoward | 17,100 | |||
State | ||||
Operating Loss Carryforwards: | ||||
Operating loss carryforwards, deferred tax asset, subject to expiration | 1,500 | |||
Operating loss carryforwards, valuation allowance | 1,200 | |||
State | General Business Tax Credit Carryforward | ||||
Tax Credit Carryforward: | ||||
Tax credit carryfoward | 800 | |||
Other Foreign Jurisdiction | ||||
Tax Credit Carryforward: | ||||
Tax credit carryfoward | 2,300 | |||
Tax credit carryforward, valuation allowance | 1,200 | |||
Tax credit carryforward, not subject to expiration | $ 1,100 | |||
Tax credit carryforward, expiration period | 7 years |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 19,405 | $ (16,317) | $ 16,312 | ||||||||
Foreign | 79,221 | 88,527 | 75,487 | ||||||||
Income before income taxes | $ 91,407 | $ 22,540 | $ 19,991 | $ (35,312) | $ 90,652 | $ 36,950 | $ (16,806) | $ (38,586) | $ 98,626 | $ 72,210 | $ 91,799 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal | |||||||||||
Current | $ (2,683) | $ 3,738 | $ 6,545 | ||||||||
Deferred | (3,477) | (25,150) | (6,587) | ||||||||
Total | (6,160) | (21,412) | (42) | ||||||||
State | |||||||||||
Current | 2,514 | 590 | 4,441 | ||||||||
Deferred | (1,758) | 342 | (2,649) | ||||||||
Total | 756 | 932 | 1,792 | ||||||||
Foreign | |||||||||||
Current | 22,786 | 22,960 | 17,626 | ||||||||
Deferred | 8,584 | 2,668 | 3,502 | ||||||||
Total | 31,370 | 25,628 | 21,128 | ||||||||
Income tax provision | $ 24,261 | $ 6,674 | $ 5,916 | $ (10,885) | $ 35,166 | $ 5,136 | $ (22,531) | $ (12,623) | $ 25,966 | $ 5,148 | $ 22,878 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
Tax expense at federal rate of 21% | $ 20,711 | $ 15,164 | $ 19,278 | ||||||||
State income taxes, net of federal benefit | 321 | 1,227 | 5,246 | ||||||||
Change in valuation allowance | 2,459 | (12,760) | 12,657 | ||||||||
Foreign tax rate differential | (1,809) | (2,535) | (4,796) | ||||||||
Unrecognized tax benefit increase (decrease) | (4,405) | 898 | 1,262 | ||||||||
Tax effect of foreign operations | 11,373 | 6,698 | 8,546 | ||||||||
Tax benefit of research & development | (2,173) | (2,506) | (2,557) | ||||||||
Transition tax | 0 | 0 | (8,112) | ||||||||
Revaluation of deferred tax balances | 0 | 0 | (4,937) | ||||||||
Performance-based compensation | (2,624) | (560) | (4,541) | ||||||||
Other | 2,113 | (478) | 832 | ||||||||
Income tax provision | $ 24,261 | $ 6,674 | $ 5,916 | $ (10,885) | $ 35,166 | $ 5,136 | $ (22,531) | $ (12,623) | $ 25,966 | $ 5,148 | $ 22,878 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 20,347 | $ 23,030 |
Tax credits | 40,188 | 47,411 |
Compensation | 18,731 | 18,791 |
Deferred revenue | 19,169 | 25,599 |
Operating lease | 10,162 | 12,956 |
Other | 9,051 | 8,517 |
Gross deferred income tax assets | 117,648 | 136,304 |
Less: valuation allowance | (10,112) | (7,653) |
Net deferred income tax assets | 107,536 | 128,651 |
Deferred income tax liabilities: | ||
Depreciation and amortization | (48,967) | (52,978) |
Operating lease right-of-use asset | (7,650) | (11,917) |
Deferred revenue | (33,947) | (44,198) |
Total deferred income tax liabilities | (90,564) | (109,093) |
Net deferred income taxes | 16,972 | 19,558 |
Deferred income taxes / liabilities included in the balance sheet are: | ||
Deferred income tax asset – noncurrent | 57,476 | 51,611 |
Deferred income tax liability – noncurrent | (40,504) | (32,053) |
Net deferred income taxes | $ 16,972 | $ 19,558 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance of unrecognized tax benefits at beginning of year | $ 29,000 | $ 28,406 | $ 27,237 |
Increases for tax positions of prior years | 4,219 | 2,784 | 315 |
Decreases for tax positions of prior years | 0 | (96) | (61) |
Increases for tax positions established for the current period | 3,912 | 2,542 | 1,185 |
Decreases for settlements with taxing authorities | (285) | (220) | 0 |
Reductions resulting from lapse of applicable statute of limitation | (12,630) | (4,462) | (115) |
Adjustment resulting from foreign currency translation | 94 | 46 | (155) |
Balance of unrecognized tax benefits at end of year | $ 24,310 | $ 29,000 | $ 28,406 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |
Option to terminate, term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal option, term | 25 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 25,148 | $ 18,486 |
Variable lease cost | 3,588 | 3,756 |
Sublease income | (134) | (528) |
Total lease cost | $ 28,602 | $ 21,714 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 18,827 | $ 19,578 |
Right-of-use assets obtained in exchange for new lease obligations: | ||
Operating leases | $ 11,431 | $ 10,478 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Operating lease right-of-use assets | $ 41,243 | $ 57,382 |
Liabilities: | ||
Other current liabilities | 13,438 | 15,049 |
Operating lease liabilities | 39,958 | 46,766 |
Total operating lease liabilities | $ 53,396 | $ 61,815 |
Weighted average remaining operating lease term (years) | 6 years 3 days | 6 years 6 months 29 days |
Weighted average operating lease discount rate | 3.67% | 4.00% |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Leases - Schedule of Maturities
Leases - Schedule of Maturities on Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 15,116 | |
2022 | 12,991 | |
2023 | 10,436 | |
2024 | 5,545 | |
2025 | 4,016 | |
Thereafter | 11,573 | |
Total lease payments | 59,677 | |
Less: imputed interest | 6,281 | |
Total lease liability | $ 53,396 | $ 61,815 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
ACI 401(k) Plan | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, maximum annual contribution per employee, percentage | 75.00% | ||
Defined contribution plan, employer matching contribution, percentage of match | 100.00% | ||
Defined contribution plan, employer matching contribtuion, percent of eligible participant contributions | 4.00% | ||
Defined contribution plan, employer matching contribution, maximum amount per employee | $ 5,000 | ||
Defined contribution plan, cost | 6,300,000 | $ 6,400,000 | $ 6,400,000 |
ACI 401(k) Plan | Employees under Age 50 | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, maximum annual contribution per employee, amount | 19,500 | ||
ACI 401(k) Plan | Employees Aged 50 or Older | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, maximum annual contribution per employee, amount | $ 26,000 | ||
ACI 401(k) Plan | Second Eligible Participant Contributions | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer matching contribution, percentage of match | 50.00% | ||
ACI 401(k) Plan | Second Eligible Participant Contributions | Maximum | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer matching contribtuion, percent of eligible participant contributions | 4.00% | ||
ACI Worldwide EMEA Group Personal Pension Scheme | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, cost | $ 1,500,000 | $ 1,500,000 | $ 1,600,000 |
ACI Worldwide EMEA Group Personal Pension Scheme | Employed at December 1, 2000 | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer discretionary contribution, percentage of eligible compensation | 8.50% | ||
ACI Worldwide EMEA Group Personal Pension Scheme | Employees Aged Over 55 Years on December 1, 2000 | Maximum | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer discretionary contribution, percentage of eligible compensation | 15.50% | ||
ACI Worldwide EMEA Group Personal Pension Scheme | Employed Subsequent to December 1, 2000 | Minimum | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer discretionary contribution, percentage of eligible compensation | 6.00% | ||
ACI Worldwide EMEA Group Personal Pension Scheme | Employed Subsequent to December 1, 2000 | Maximum | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer discretionary contribution, percentage of eligible compensation | 10.00% |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Revenues: | ||||||||||||||
Total revenues | $ 387,044 | $ 315,883 | $ 299,910 | $ 291,485 | $ 399,920 | $ 354,901 | $ 297,618 | $ 205,855 | $ 1,294,322 | $ 1,258,294 | $ 1,009,780 | |||
Operating expenses: | ||||||||||||||
Cost of revenue | 150,697 | 158,579 | 147,346 | 165,837 | 173,104 | 174,168 | 155,240 | 114,941 | 622,459 | [1] | 617,453 | [1] | 430,351 | [1] |
Research and development | 31,118 | 33,573 | 35,578 | 39,024 | 34,601 | 36,543 | 39,235 | 36,194 | 139,293 | 146,573 | 143,630 | |||
Selling and marketing | 26,875 | 22,154 | 24,455 | 30,083 | 30,875 | 30,417 | 32,962 | 29,430 | 103,567 | 123,684 | 117,881 | |||
General and administrative | 49,784 | 37,000 | 29,758 | 35,926 | 27,174 | 27,286 | 49,319 | 31,517 | 152,468 | 135,296 | 107,422 | |||
Depreciation and amortization | 32,863 | 33,395 | 33,635 | 31,898 | 31,753 | 31,169 | 26,744 | 21,866 | 131,791 | 111,532 | 84,585 | |||
Total operating expenses | 291,337 | 284,701 | 270,772 | 302,768 | 297,507 | 299,583 | 303,500 | 233,948 | 1,149,578 | 1,134,538 | 883,869 | |||
Operating income | 95,707 | 31,182 | 29,138 | (11,283) | 102,413 | 55,318 | (5,882) | (28,093) | 144,744 | 123,756 | 125,911 | |||
Other income (expense): | ||||||||||||||
Interest expense | (12,392) | (12,925) | (14,142) | (17,171) | (18,109) | (18,987) | (15,323) | (11,614) | (56,630) | (64,033) | (41,530) | |||
Interest income | 2,847 | 2,927 | 2,954 | 2,900 | 2,949 | 2,988 | 2,997 | 3,033 | 11,628 | 11,967 | 11,142 | |||
Other, net | 5,245 | 1,356 | 2,041 | (9,758) | 3,399 | (2,369) | 1,402 | (1,912) | (1,116) | 520 | (3,724) | |||
Total other income (expense) | (4,300) | (8,642) | (9,147) | (24,029) | (11,761) | (18,368) | (10,924) | (10,493) | (46,118) | (51,546) | (34,112) | |||
Income before income taxes | 91,407 | 22,540 | 19,991 | (35,312) | 90,652 | 36,950 | (16,806) | (38,586) | 98,626 | 72,210 | 91,799 | |||
Income tax expense (benefit) | 24,261 | 6,674 | 5,916 | (10,885) | 35,166 | 5,136 | (22,531) | (12,623) | 25,966 | 5,148 | 22,878 | |||
Net income | $ 67,146 | $ 15,866 | $ 14,075 | $ (24,427) | $ 55,486 | $ 31,814 | $ 5,725 | $ (25,963) | $ 72,660 | $ 67,062 | $ 68,921 | |||
Earnings (loss) per share | ||||||||||||||
Basic (in dollars per share) | $ 0.57 | $ 0.14 | $ 0.12 | $ (0.21) | $ 0.48 | $ 0.27 | $ 0.05 | $ (0.22) | $ 0.62 | $ 0.58 | $ 0.59 | |||
Diluted (in dollars per share) | $ 0.56 | $ 0.13 | $ 0.12 | $ (0.21) | $ 0.47 | $ 0.27 | $ 0.05 | $ (0.22) | $ 0.62 | $ 0.57 | $ 0.59 | |||
Software as a service and platform as a service | ||||||||||||||
Revenues: | ||||||||||||||
Total revenues | $ 205,288 | $ 190,369 | $ 180,573 | $ 192,950 | $ 203,661 | $ 192,952 | $ 172,499 | $ 108,557 | $ 769,180 | $ 677,669 | $ 433,025 | |||
License | ||||||||||||||
Revenues: | ||||||||||||||
Total revenues | 111,858 | 56,773 | 50,136 | 28,129 | 122,584 | 92,058 | 52,541 | 21,078 | 246,896 | 288,261 | 280,556 | |||
Maintenance | ||||||||||||||
Revenues: | ||||||||||||||
Total revenues | 52,619 | 53,049 | 52,749 | 53,280 | 53,738 | 52,638 | 51,922 | 55,111 | 211,697 | 213,409 | 219,145 | |||
Services | ||||||||||||||
Revenues: | ||||||||||||||
Total revenues | $ 17,279 | $ 15,692 | $ 16,452 | $ 17,126 | $ 19,937 | $ 17,253 | $ 20,656 | $ 21,109 | $ 66,549 | $ 78,955 | $ 77,054 | |||
[1] | The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. |