Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | 2811 Ponce de Leon Blvd | |
Entity Address, Address Line Two | PH 1 | |
Entity Address, City or Town | Coral Gables, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33134 | |
City Area Code | 305 | |
Local Phone Number | 894-2200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 114,786,563 | |
Title of 12(b) Security | Common Stock, $0.005 par value | |
Trading Symbol | ACIW | |
Security Exchange Name | NASDAQ | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000935036 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 114,754 | $ 122,059 |
Receivables, net of allowances of $2,980 and $2,861, respectively | 310,778 | 320,405 |
Settlement assets | 531,804 | 452,396 |
Prepaid expenses | 33,465 | 24,698 |
Other current assets | 18,926 | 17,876 |
Total current assets | 1,009,727 | 937,434 |
Noncurrent assets | ||
Accrued receivables, net | 276,731 | 276,164 |
Property and equipment, net | 60,770 | 63,050 |
Operating lease right-of-use assets | 47,161 | 47,825 |
Software, net | 146,952 | 157,782 |
Goodwill | 1,280,226 | 1,280,226 |
Intangible assets, net | 273,527 | 283,004 |
Deferred income taxes, net | 51,243 | 50,778 |
Other noncurrent assets | 64,108 | 62,478 |
TOTAL ASSETS | 3,210,445 | 3,158,741 |
Current liabilities | ||
Accounts payable | 38,929 | 41,312 |
Settlement liabilities | 531,148 | 451,575 |
Employee compensation | 32,316 | 51,379 |
Current portion of long-term debt | 50,778 | 45,870 |
Deferred revenue | 92,518 | 84,425 |
Other current liabilities | 67,923 | 79,594 |
Total current liabilities | 813,612 | 754,155 |
Noncurrent liabilities | ||
Deferred revenue | 27,790 | 25,925 |
Long-term debt | 1,036,380 | 1,019,872 |
Deferred income taxes, net | 32,519 | 36,122 |
Operating lease liabilities | 41,718 | 43,346 |
Other noncurrent liabilities | 33,759 | 34,544 |
Total liabilities | 1,985,778 | 1,913,964 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at March 31, 2022, and December 31, 2021 | 0 | 0 |
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at March 31, 2022, and December 31, 2021 | 702 | 702 |
Additional paid-in capital | 685,354 | 688,313 |
Retained earnings | 1,146,771 | 1,131,281 |
Treasury stock, at cost, 25,439,428 and 24,795,009 shares at March 31, 2022, and December 31, 2021, respectively | (506,513) | (475,972) |
Accumulated other comprehensive loss | (101,647) | (99,547) |
Total stockholders’ equity | 1,224,667 | 1,244,777 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,210,445 | $ 3,158,741 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 2,980 | $ 2,861 |
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) | 25,439,428 | 24,795,009 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Revenues | |||
Revenues | $ 323,080 | $ 285,186 | |
Operating expenses | |||
Cost of revenue | [1] | 166,286 | 159,485 |
Research and development | 37,807 | 34,514 | |
Selling and marketing | 34,608 | 28,138 | |
General and administrative | 25,875 | 27,775 | |
Depreciation and amortization | 30,838 | 31,584 | |
Total operating expenses | 295,414 | 281,496 | |
Operating income | 27,666 | 3,690 | |
Other income (expense) | |||
Interest expense | (10,894) | (11,475) | |
Interest income | 3,159 | 2,854 | |
Other, net | 2,250 | (1,382) | |
Total other income (expense) | (5,485) | (10,003) | |
Income (loss) before income taxes | 22,181 | (6,313) | |
Income tax expense (benefit) | 6,691 | (4,368) | |
Net income (loss) | $ 15,490 | $ (1,945) | |
Income (loss) per common share | |||
Basic (in dollars per share) | $ 0.13 | $ (0.02) | |
Diluted (in dollars per share) | $ 0.13 | $ (0.02) | |
Weighted average common shares outstanding | |||
Basic (in shares) | 115,287 | 117,491 | |
Diluted (in shares) | 116,098 | 117,491 | |
Software as a service and platform as a service | |||
Revenues | |||
Revenues | $ 194,562 | $ 195,746 | |
License | |||
Revenues | |||
Revenues | 60,285 | 21,202 | |
Maintenance | |||
Revenues | |||
Revenues | 51,418 | 52,363 | |
Services | |||
Revenues | |||
Revenues | $ 16,815 | $ 15,875 | |
[1] | The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 15,490 | $ (1,945) |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (2,100) | (3,116) |
Total other comprehensive loss | (2,100) | (3,116) |
Comprehensive income (loss) | $ 13,390 | $ (5,061) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2020 | $ 1,206,597 | $ 702 | $ 682,431 | $ 1,003,490 | $ (387,581) | $ (92,445) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (1,945) | (1,945) | ||||
Other comprehensive loss | (3,116) | (3,116) | ||||
Stock-based compensation | 6,703 | 6,703 | ||||
Shares issued and forfeited, net, under stock plans | 3,684 | (19,116) | 22,800 | |||
Repurchase of stock-based compensation awards for tax withholdings | (14,206) | (14,206) | ||||
Ending balance at Mar. 31, 2021 | 1,197,717 | 702 | 670,018 | 1,001,545 | (378,987) | (95,561) |
Beginning balance at Dec. 31, 2021 | 1,244,777 | 702 | 688,313 | 1,131,281 | (475,972) | (99,547) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 15,490 | 15,490 | ||||
Other comprehensive loss | (2,100) | (2,100) | ||||
Stock-based compensation | 7,958 | 7,958 | ||||
Shares issued and forfeited, net, under stock plans | 1,939 | (10,917) | 12,856 | |||
Repurchase of — shares of common stock | (37,860) | (37,860) | ||||
Repurchase of stock-based compensation awards for tax withholdings | (5,537) | (5,537) | ||||
Ending balance at Mar. 31, 2022 | $ 1,224,667 | $ 702 | $ 685,354 | $ 1,146,771 | $ (506,513) | $ (101,647) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) | 3 Months Ended |
Mar. 31, 2022shares | |
Statement of Stockholders' Equity [Abstract] | |
Repurchase of common stock (in shares) | 1,131,248 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 15,490 | $ (1,945) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation | 4,981 | 5,416 |
Amortization | 26,508 | 28,167 |
Amortization of operating lease right-of-use assets | 2,716 | 2,345 |
Amortization of deferred debt issuance costs | 1,153 | 1,182 |
Deferred income taxes | (3,367) | (6,078) |
Stock-based compensation expense | 7,958 | 6,703 |
Other | 601 | (106) |
Changes in operating assets and liabilities: | ||
Receivables | 9,660 | 76,135 |
Accounts payable | (2,748) | (2,808) |
Accrued employee compensation | (19,138) | (12,725) |
Deferred revenue | 9,949 | 8,152 |
Other current and noncurrent assets and liabilities | (24,889) | (34,681) |
Net cash flows from operating activities | 28,874 | 69,757 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,280) | (4,346) |
Purchases of software and distribution rights | (6,207) | (8,053) |
Net cash flows from investing activities | (8,487) | (12,399) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 906 | 1,052 |
Proceeds from exercises of stock options | 1,022 | 2,799 |
Repurchase of stock-based compensation awards for tax withholdings | (5,537) | (14,206) |
Repurchases of common stock | (37,860) | 0 |
Proceeds from revolving credit facility | 40,000 | 0 |
Repayment of revolving credit facility | (10,000) | (15,000) |
Repayment of term portion of credit agreement | (9,738) | (9,738) |
Payments on or proceeds from other debt, net | (4,186) | (3,600) |
Net decrease in settlement assets and liabilities | (605) | (71,264) |
Net cash flows from financing activities | (25,998) | (109,957) |
Effect of exchange rate fluctuations on cash | (2,464) | (41) |
Net decrease in cash and cash equivalents | (8,075) | (52,640) |
Cash and cash equivalents, including settlement deposits, beginning of period | 184,142 | 265,382 |
Cash and cash equivalents, including settlement deposits, end of period | 176,067 | 212,742 |
Cash and cash equivalents | 114,754 | 184,364 |
Settlement deposits | 61,313 | 28,378 |
Total cash and cash equivalents, including settlement deposits | 176,067 | 212,742 |
Supplemental cash flow information | ||
Income taxes paid | 8,418 | 10,713 |
Interest paid | $ 15,492 | $ 15,954 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements The unaudited condensed consolidated financial statements include the accounts of ACI Worldwide, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements as of March 31, 2022, and for the three months ended March 31, 2022 and 2021, are unaudited and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation, in all material respects, of the financial position and operating results for the interim periods. The condensed consolidated balance sheet as of December 31, 2021, is derived from the audited financial statements. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2021, filed on February 24, 2022. Results for the three months ended March 31, 2022, are not necessarily indicative of results that may be attained in the future. The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are affected by management’s application of accounting policies, as well as uncertainty in the current economic environment due to COVID-19. Actual results could differ from those estimates. Revision of Prior Period Financial Statements As of December 31, 2021, the Company revised the previously reported consolidated statements of cash flows to include settlement deposits in total cash and cash equivalents and settlement receivables and settlement liabilities net activity in cash flows from financing activities, both of which were previously included in cash flows from operating activities. This immaterial revision did not have an effect on its previously reported consolidated balance sheets, statements of operations, statements of comprehensive income, or statements of stockholders' equity. A summary of the revisions to the previously reported balances are presented in the table below for comparative purposes (in thousands): Three Months Ended March 31, 2021 As reported Revision adjustment As revised Cash flows from operating activities: Other current and noncurrent assets and liabilities $ (34,315) $ (366) $ (34,681) Net cash flows from operating activities 70,123 (366) 69,757 Cash flows from financing activities: Net decrease in settlement assets and liabilities $ — $ (71,264) $ (71,264) Net cash flows from financing activities (38,693) (71,264) (109,957) Net increase (decrease) in cash and cash equivalents $ 18,990 $ (71,630) $ (52,640) Cash and cash equivalents, including settlement deposits, beginning of period 165,374 100,008 265,382 Cash and cash equivalents, including settlement deposits, end of period 184,364 28,378 212,742 Other Current Liabilities The components of other current liabilities are included in the following table (in thousands): March 31, 2022 December 31, 2021 Operating lease liabilities $ 12,226 $ 11,518 Vendor financed licenses 9,729 12,521 Accrued interest 3,020 8,776 Royalties payable 2,331 4,102 Other 40,617 42,677 Total other current liabilities $ 67,923 $ 79,594 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 March 31, 2022, and December 31, 2021, was $198.1 million and $272.8 million, respectively. Fair Value The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. The fair value of the Company’s 5.750% Senior Notes due 2026 (“2026 Notes”) was $411.5 million and $419.0 million as of March 31, 2022, and December 31, 2021, respectively. The fair values of cash and cash equivalents approximate the carrying values due to the short period of time to maturity (Level 2 of the fair value hierarchy). Goodwill In accordance with the Accounting Standards Codification ("ASC") 350, Intangibles – Goodwill and Other , the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level and has identified its operating segments, Banks, Merchants, and Billers, as the reporting units. As of March 31, 2022, the Company's goodwill balance of $1.3 billion was allocated $725.9 million to Banks, $137.3 million to Merchants, and $417.0 million to Billers. Recoverability of goodwill is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in impairment testing in the absence of available transactional market evidence to determine the fair value. The calculated fair value was substantially in excess of the current carrying value for all reporting units based upon the October 1, 2021, annual impairment test and there have been no indications of impairment in the subsequent periods. Equity Method Investment In July 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 $18.9 million and $19.3 million, which is included in other noncurrent assets in the condensed consolidated balance sheet as of March 31, 2022, and December 31, 2021, respectively. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue In accordance with ASC 606, Revenue From Contracts With Customers , revenue is recognized upon transfer of control of promised products and/or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. See Note 9, Segment Information, for additional information, including disaggregation of revenue based on primary solution category. Total receivables represent amounts billed and amounts earned that are to be billed in the future (i.e., accrued receivables). Included in accrued receivables are services, software as a service ("SaaS"), and platform as a service ("PaaS") revenues earned in the current period but billed in the following period, and amounts due under multi-year software license arrangements with extended payment terms for which the Company has an unconditional right to invoice and receive payment subsequent to invoicing. Total receivables, net is comprised of the following (in thousands): March 31, 2022 December 31, 2021 Billed receivables $ 152,027 $ 162,479 Allowance for doubtful accounts (2,980) (2,861) Billed receivables, net 149,047 159,618 Current accrued receivables, net 161,731 160,787 Long-term accrued receivables, net 276,731 276,164 Total accrued receivables, net 438,462 436,951 Total receivables, net $ 587,509 $ 596,569 One customer accounted for 13.8% of the Company's consolidated receivables balance as of March 31, 2022 and December 31, 2021. 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, 2021 $ 110,350 Deferral of revenue 38,201 Recognition of deferred revenue (28,109) Foreign currency translation (133) Balance, March 31, 2022 $ 120,308 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 $788.8 million as of March 31, 2022, of which the Company expects to recognize approximately 45% over the next 12 months and the remainder thereafter. During the three months ended March 31, 2022 and 2021, revenue recognized by the Company from performance obligations satisfied in previous periods was not significant. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of March 31, 2022, the Company had $30.0 million, $668.4 million, and $400.0 million outstanding under its Revolving Credit Facility, Term Loans, and Senior Notes, respectively, with up to $468.5 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 Credit Agreement consists of (a) a five-year $500.0 million senior secured revolving credit facility (the “Revolving Credit Facility”), which includes sublimits for (1) the issuance of standby letters of credit and (2) swingline loans, (b) a five-year $279.0 million senior secured term loan facility (the "Initial Term Loan") and (c) a five-year $500.0 million Delayed Draw Term Loan (together with the Initial Term Loan, the "Term Loans", and together with the Initial Term Loan and the Revolving Credit Facility, the “Credit Facility”). The Credit Agreement also allows the Company to request optional incremental term loans and increases in the revolving commitment. The Credit Facility will mature on April 5, 2024. At the Company’s option, borrowings under the Credit Facility bear interest at an annual rate equal to, either (a) a base rate determined by reference to the highest of (1) the annual interest rate publicly announced by the administrative agent as its Prime Rate, (2) the federal funds effective rate plus 1/2 of 1%, or (3) a London Interbank Offered Rate (“LIBOR”) rate determined by reference to the costs of funds for U.S. dollar deposits for a one-month interest period, adjusted for certain additional costs, plus 1% or (b) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowings, adjusted for certain additional costs, plus an applicable margin. Based on the calculation of the applicable consolidated total leverage ratio, the applicable margin for borrowings under the Credit Facility is between 0.25% to 1.25% with respect to base rate borrowings and between 1.25% and 2.25% with respect to LIBOR rate borrowings. Interest is due and payable monthly. The interest rate in effect for the Credit Facility as of March 31, 2022, was 2.20%. 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. Expected Discontinuation of LIBOR The administrator of LIBOR announced it would cease publication of the U.S. dollar LIBOR settings immediately following the LIBOR publication on June 30, 2023. 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 U.S dollar LIBOR and the maturity date of the Credit Agreement extends beyond June 30, 2023. 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. The 2026 Notes will mature on August 15, 2026. Maturities on debt outstanding as of March 31, 2022, are as follows (in thousands): Fiscal Year Ending December 31, Remainder of 2022 $ 40,694 2023 69,906 2024 587,823 2025 — 2026 400,000 Thereafter — Total $ 1,098,423 As of March 31, 2022, 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): March 31, 2022 December 31, 2021 Term loans $ 668,423 $ 678,160 Revolving credit facility 30,000 — 5.750% Senior notes, due August 2026 400,000 400,000 Debt issuance costs (11,265) (12,418) Total debt 1,087,158 1,065,742 Less: current portion of term loans 55,300 50,431 Less: current portion of debt issuance costs (4,522) (4,561) Total long-term debt $ 1,036,380 $ 1,019,872 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 the federal funds effective rate plus 2.250% based on the Company’s average outstanding balance and the frequency in which overdrafts occur. The overdraft facility acts as a secured loan under the terms of the Credit Agreement to provide an additional funding mechanism for timing differences that can occur in the bill payment settlement process. Amounts outstanding on the overdraft facility are included in other current liabilities in the condensed consolidated balance sheet. As of March 31, 2022, there was $75.0 million available and no amount outstanding on the overdraft facility. As of December 31, 2021, there was no amount outstanding on the overdraft facility. Other The Company finances certain multi-year license agreements for internal-use software. Upon execution, these arrangements have been treated as a non-cash investing and financing activity for purposes of the condensed consolidated statements of cash flows. As of March 31, 2022, $2.3 million was outstanding on these agreements, all of which is included in other current liabilities in the condensed consolidated balance sheet. As of December 31, 2021, $2.9 million was outstanding on these agreements, all of which is included in other current liabilities in the condensed consolidated balance sheet. |
Software and Other Intangible A
Software and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance Software for internal use $ 443,487 $ (296,535) $ 146,952 $ 440,242 $ (283,109) $ 157,133 Software for resale 126,934 (126,934) — 127,904 (127,255) 649 Total software $ 570,421 $ (423,469) $ 146,952 $ 568,146 $ (410,364) $ 157,782 Amortization of software for internal use is computed using the straight-line method over an estimated useful life of generally three Amortization of software for resale 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 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): March 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance Customer relationships $ 507,264 $ (238,384) $ 268,880 $ 507,962 $ (230,152) $ 277,810 Trademarks and trade names 23,701 (19,054) 4,647 23,839 (18,645) 5,194 Total other intangible assets $ 530,965 $ (257,438) $ 273,527 $ 531,801 $ (248,797) $ 283,004 Other intangible assets amortization expense recorded during both the three months ended March 31, 2022 and 2021, totaled $9.2 million and $9.3 million, respectively. Based on capitalized intangible assets as of March 31, 2022, estimated amortization expense amounts in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Software Amortization Other Intangible Assets Amortization Remainder of 2022 $ 46,543 $ 27,385 2023 44,509 36,231 2024 27,692 31,754 2025 20,353 23,232 2026 7,801 23,232 Thereafter 54 131,693 Total $ 146,952 $ 273,527 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Employee Stock Purchase Plan Shares issued under the 2017 Employee Stock Purchase Plan during the three months ended March 31, 2022 and 2021, totaled 31,406 and 27,117, respectively. Stock Options A summary of stock option activity is as follows: Number of Weighted Average Weighted Average Aggregate Intrinsic Value Outstanding as of December 31, 2021 1,640,319 $ 18.42 Exercised (57,083) 17.91 Outstanding as of March 31, 2022 1,583,236 $ 18.44 3.12 $ 20,657,176 Exercisable as of March 31, 2022 1,583,236 $ 18.44 3.12 $ 20,657,176 The total intrinsic value of stock options exercised during the three months ended March 31, 2022 and 2021, was $0.9 million and $3.1 million, respectively. There were no stock options granted during the three months ended March 31, 2022 or 2021. Total Shareholder Return Awards A summary of nonvested total shareholder return awards ("TSRs") is as follows: Number of Weighted Average Nonvested as of December 31, 2021 1,154,721 $ 40.10 Granted 520,020 42.99 Vested (212,210) 45.86 Forfeited (7,114) 43.22 Change in payout rate (114,355) 45.92 Nonvested as of March 31, 2022 1,341,062 $ 39.79 During the three months ended March 31, 2022, a total of 212,210 TSRs awards granted in fiscal 2019 vested and achieved a payout rate of 65% based on the Company's total shareholder return as compared to a group of peer companies over a three- year performance period. The Company withheld 47,612 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. The fair value of TSRs granted during the three months ended March 31, 2022 and 2021, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, Compensation - Stock Compensation , using the following weighted average assumptions: Three Months Ended March 31, 2022 2021 Expected life (years) 3.1 2.8 Risk-free interest rate 1.5 % 0.3 % Expected volatility 40.0 % 41.2 % Expected dividend yield — — Restricted Share Units A summary of nonvested restricted share unit awards ("RSUs") is as follows: Number of Weighted Average Nonvested as of December 31, 2021 946,151 $ 33.57 Granted 756,517 31.69 Vested (356,079) 31.72 Forfeited (9,364) 33.38 Nonvested as of March 31, 2022 1,337,225 $ 33.00 During the three months ended March 31, 2022, a total of 356,079 RSUs vested. The Company withheld 122,337 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. As of March 31, 2022, there were unrecognized compensation costs of $39.6 million and $36.1 million related to nonvested RSUs and TSRs, respectively, which the Company expects to recognize over weighted average periods of 2.4 years. |
Common Stock and Treasury Stock
Common Stock and Treasury Stock | 3 Months Ended |
Mar. 31, 2022 | |
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 December 2021, the board approved the repurchase of the Company's common stock of up to $250.0 million, in place of the remaining purchase amounts previously authorized. The Company repurchased 1,131,248 shares for $37.9 million during the three months ended March 31, 2022. Under the program to date, the Company has repurchased 50,488,743 shares for approximately $757.6 million. As of March 31, 2022, the maximum remaining amount authorized for purchase under the stock repurchase program was $178.4 million. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is computed in accordance with ASC 260, Earnings Per Share , based on weighted average outstanding common shares. Diluted earnings (loss) per share is computed based on basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, 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 (loss) per share (in thousands): Three Months Ended March 31, 2022 2021 Weighted average shares outstanding: Basic weighted average shares outstanding 115,287 117,491 Add: Dilutive effect of stock options and RSUs 811 — Diluted weighted average shares outstanding 116,098 117,491 The diluted earnings (loss) per share computation excludes 1.8 million and 4.5 million options to purchase shares, RSUs, and contingently issuable shares during the three months ended March 31, 2022 and 2021, respectively, as their effect would be anti-dilutive. Common stock outstanding as of March 31, 2022, and December 31, 2021, was 115,085,627 and 115,730,046, respectively. |
Other, Net
Other, Net | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other, Net | Other, NetOther, net is primarily comprised of foreign currency transaction gains and losses. Other, net was $2.3 million of income and $1.4 million of expense for the three months ended March 31, 2022 and 2021, respectively |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company reports financial performance based on its operating segments, Banks, Merchants, and Billers, 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. No operating segments have been aggregated to form the reportable segments. Banks. ACI provides payment solutions to large and mid-size banks globally for retail banking, real time, digital, and other payment services. These solutions transform banks’ complex payment environments to speed time to market, reduce costs, and deliver a consistent experience to customers across channels while enabling them to prevent and rapidly react to fraudulent activity. In addition, they enable banks to meet the requirements of different real-time payments schemes and to quickly create differentiated products to meet consumer, business, and merchant demands. Merchants. ACI’s support of merchants globally includes Tier 1 and Tier 2 merchants, online-only merchants and the payment service providers, independent selling organizations, value-added resellers, and acquirers who service them. These customers operate in a variety of verticals, including general merchandise, grocery, hospitality, dining, transportation, and others. The Company's solutions provide merchants with a secure, omni-channel payments platform that gives them independence from third-party payment providers. They also offer secure solutions to online-only merchants that provide consumers with a convenient and seamless way to shop. Billers. Within the billers segment, ACI provides electronic bill presentment and payment (“EBPP”) services to companies operating in the consumer finance, insurance, healthcare, higher education, utility, government, and mortgage categories. The solutions enable these customers to support a wide range of payment options and provide a convenient consumer payments experience that drives consumer loyalty and increases revenue. Revenue is attributed to the reportable segments based upon 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 projects, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities. 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 net other income (expense). Corporate and unallocated expenses includes global facilities and information technology costs and long-term product roadmap expenses in addition to corporate overhead costs that are not allocated to reportable segments. The overhead costs relate to human resources, finance, legal, accounting, and merger and acquisition activity. These costs along with depreciation and amortization and stock-based compensation 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): Three Months Ended March 31, 2022 2021 Revenue Banks $ 132,198 $ 95,917 Merchants 41,002 38,670 Billers 149,880 150,599 Total revenue $ 323,080 $ 285,186 Segment Adjusted EBITDA Banks $ 64,714 $ 37,195 Merchants 14,713 14,725 Billers 26,357 34,021 Depreciation and amortization (31,489) (33,583) Stock-based compensation expense (7,958) (6,703) Corporate and unallocated expenses (38,671) (41,965) Interest, net (7,735) (8,621) Other, net 2,250 (1,382) Income (loss) before income taxes $ 22,181 $ (6,313) 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 solution category for the Company’s reportable segments for the periods indicated (in thousands): Three Months Ended March 31, 2022 Banks Merchants Billers Total Primary Solution Categories Bill Payments $ — $ — $ 149,880 $ 149,880 Digital Business Banking 13,488 — — 13,488 Merchant Payments — 41,002 — 41,002 Fraud Management 7,777 — — 7,777 Real-Time Payments 21,927 — — 21,927 Issuing and Acquiring 89,006 — — 89,006 Total $ 132,198 $ 41,002 $ 149,880 $ 323,080 Three Months Ended March 31, 2021 Banks Merchants Billers Total Primary Solution Categories Bill Payments $ — $ — $ 150,599 $ 150,599 Digital Business Banking 15,092 — — 15,092 Merchant Payments — 38,670 — 38,670 Fraud Management 6,224 — — 6,224 Real-Time Payments 13,185 — — 13,185 Issuing and Acquiring 61,416 — — 61,416 Total $ 95,917 $ 38,670 $ 150,599 $ 285,186 Three Months Ended March 31, 2022 2021 Banks Software as a service and platform as a service $ 13,952 $ 14,278 License 54,439 18,018 Maintenance 47,343 48,031 Services 16,464 15,590 Total $ 132,198 $ 95,917 Merchants Software as a service and platform as a service $ 30,767 $ 31,043 License 5,846 3,090 Maintenance 4,038 4,252 Services 351 285 Total $ 41,002 $ 38,670 Billers Software as a service and platform as a service $ 149,843 $ 150,425 License — 94 Maintenance 37 80 Services — — Total $ 149,880 $ 150,599 The following is the Company's revenue by geographic location for the periods indicated (in thousands): Three Months Ended March 31, 2022 2021 Revenue United States $ 199,315 $ 191,977 Other 123,765 93,209 Total $ 323,080 $ 285,186 The following is the Company’s long-lived assets by geographic location for the periods indicated (in thousands): March 31, 2022 December 31, 2021 Long-lived Assets United States $ 1,401,232 $ 1,425,391 Other 748,243 745,138 Total $ 2,149,475 $ 2,170,529 No single customer accounted for more than 10% of the Company’s consolidated revenues during the three months ended March 31, 2022 and 2021. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three months ended March 31, 2022 and 2021. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2022, the Company's effective tax rate was 30%. The Company’s foreign entities reported profits of $30.9 million for the three months ended March 31, 2022. For the three months ended March 31, 2021, the Company's effective tax rate was 69%. The Company reported a tax benefit on overall pretax loss, with foreign entities reporting losses of $0.6 million. The effective tax rate for the three months ended March 31, 2021, was positively impacted by excess tax benefits on stock-based compensation. The Company’s effective tax rate could fluctuate on a quarterly basis due to the occurrence of significant and unusual or infrequent items, such as vesting of stock-based compensation or foreign currency gains and losses. The Company’s effective tax rate could also fluctuate due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations, accounting principles, or interpretations thereof. In addition, the Company is occasionally subject to examination of its income tax returns by tax authorities in the jurisdictions it operates. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. As of March 31, 2022, and December 31, 2021, the amount of unrecognized tax benefits for uncertain tax positions was $24.3 million and $24.5 million, respectively, excluding related liabilities for interest and penalties of $1.1 million as of March 31, 2022, and December 31, 2021. The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $5.8 million, due to the settlement of various audits and the expiration of statutes of limitation. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings In April 2021, ACH files associated with one of the Company's mortgage servicing customers were inadvertently transmitted to a processing bank during a test of its ACH file production system. Reversal ACH files were promptly issued, restoring affected accounts. The Company has been contacted by the U.S. Consumer Finance Protection Bureau and various state consumer protection and regulatory agencies about this incident and is cooperating in their investigations, which could result in fines or penalties that could be material and injunctive remedies that could be burdensome and costly to implement. |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The unaudited condensed consolidated financial statements include the accounts of ACI Worldwide, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements as of March 31, 2022, and for the three months ended March 31, 2022 and 2021, are unaudited and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation, in all material respects, of the financial position and operating results for the interim periods. The condensed consolidated balance sheet as of December 31, 2021, is derived from the audited financial statements. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2021, filed on February 24, 2022. Results for the three months ended March 31, 2022, are not necessarily indicative of results that may be attained in the future. |
Use of Estimates | The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are affected by management’s application of accounting policies, as well as uncertainty in the current economic environment due to COVID-19. Actual results could differ from those estimates. |
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. |
Fair Value | Fair ValueThe 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. |
Goodwill | Goodwill In accordance with the Accounting Standards Codification ("ASC") 350, Intangibles – Goodwill and Other , the Company assesses goodwill for impairment annually during the fourth quarter of its fiscal year using October 1 balances or when there is evidence that events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company evaluates goodwill at the reporting unit level and has identified its operating segments, Banks, Merchants, and Billers, as the reporting units. As of March 31, 2022, the Company's goodwill balance of $1.3 billion was allocated $725.9 million to Banks, $137.3 million to Merchants, and $417.0 million to Billers. Recoverability of goodwill is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in impairment testing in the absence of available transactional market evidence to determine the fair value. The calculated fair value was substantially in excess of the current carrying value for all reporting units based upon the October 1, 2021, annual impairment test and there have been no indications of impairment in the subsequent periods. |
Equity Method Investment | Equity Method Investment In July 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 $18.9 million and $19.3 million, which is included in other noncurrent assets in the condensed consolidated balance sheet as of March 31, 2022, and December 31, 2021, respectively. |
Condensed Consolidated Financ_3
Condensed Consolidated Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | A summary of the revisions to the previously reported balances are presented in the table below for comparative purposes (in thousands): Three Months Ended March 31, 2021 As reported Revision adjustment As revised Cash flows from operating activities: Other current and noncurrent assets and liabilities $ (34,315) $ (366) $ (34,681) Net cash flows from operating activities 70,123 (366) 69,757 Cash flows from financing activities: Net decrease in settlement assets and liabilities $ — $ (71,264) $ (71,264) Net cash flows from financing activities (38,693) (71,264) (109,957) Net increase (decrease) in cash and cash equivalents $ 18,990 $ (71,630) $ (52,640) Cash and cash equivalents, including settlement deposits, beginning of period 165,374 100,008 265,382 Cash and cash equivalents, including settlement deposits, end of period 184,364 28,378 212,742 |
Summary of Other Current Liabilities | The components of other current liabilities are included in the following table (in thousands): March 31, 2022 December 31, 2021 Operating lease liabilities $ 12,226 $ 11,518 Vendor financed licenses 9,729 12,521 Accrued interest 3,020 8,776 Royalties payable 2,331 4,102 Other 40,617 42,677 Total other current liabilities $ 67,923 $ 79,594 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Total Receivables, Net | Total receivables, net is comprised of the following (in thousands): March 31, 2022 December 31, 2021 Billed receivables $ 152,027 $ 162,479 Allowance for doubtful accounts (2,980) (2,861) Billed receivables, net 149,047 159,618 Current accrued receivables, net 161,731 160,787 Long-term accrued receivables, net 276,731 276,164 Total accrued receivables, net 438,462 436,951 Total receivables, net $ 587,509 $ 596,569 |
Summary of Changes in Deferred Revenue | Changes in deferred revenue were as follows (in thousands): Balance, December 31, 2021 $ 110,350 Deferral of revenue 38,201 Recognition of deferred revenue (28,109) Foreign currency translation (133) Balance, March 31, 2022 $ 120,308 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Maturities on Debt Outstanding | Maturities on debt outstanding as of March 31, 2022, are as follows (in thousands): Fiscal Year Ending December 31, Remainder of 2022 $ 40,694 2023 69,906 2024 587,823 2025 — 2026 400,000 Thereafter — Total $ 1,098,423 |
Summary of Total Debt | Total debt is comprised of the following (in thousands): March 31, 2022 December 31, 2021 Term loans $ 668,423 $ 678,160 Revolving credit facility 30,000 — 5.750% Senior notes, due August 2026 400,000 400,000 Debt issuance costs (11,265) (12,418) Total debt 1,087,158 1,065,742 Less: current portion of term loans 55,300 50,431 Less: current portion of debt issuance costs (4,522) (4,561) Total long-term debt $ 1,036,380 $ 1,019,872 |
Software and Other Intangible_2
Software and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance Software for internal use $ 443,487 $ (296,535) $ 146,952 $ 440,242 $ (283,109) $ 157,133 Software for resale 126,934 (126,934) — 127,904 (127,255) 649 Total software $ 570,421 $ (423,469) $ 146,952 $ 568,146 $ (410,364) $ 157,782 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): March 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance Customer relationships $ 507,264 $ (238,384) $ 268,880 $ 507,962 $ (230,152) $ 277,810 Trademarks and trade names 23,701 (19,054) 4,647 23,839 (18,645) 5,194 Total other intangible assets $ 530,965 $ (257,438) $ 273,527 $ 531,801 $ (248,797) $ 283,004 |
Schedule of Estimated Intangible Asset Amortization Expense in Future Fiscal Years | Based on capitalized intangible assets as of March 31, 2022, estimated amortization expense amounts in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Software Amortization Other Intangible Assets Amortization Remainder of 2022 $ 46,543 $ 27,385 2023 44,509 36,231 2024 27,692 31,754 2025 20,353 23,232 2026 7,801 23,232 Thereafter 54 131,693 Total $ 146,952 $ 273,527 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 Weighted Average Weighted Average Aggregate Intrinsic Value Outstanding as of December 31, 2021 1,640,319 $ 18.42 Exercised (57,083) 17.91 Outstanding as of March 31, 2022 1,583,236 $ 18.44 3.12 $ 20,657,176 Exercisable as of March 31, 2022 1,583,236 $ 18.44 3.12 $ 20,657,176 |
Total Shareholder Return Awards (TSRs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Nonvested Performance Award Activity | A summary of nonvested total shareholder return awards ("TSRs") is as follows: Number of Weighted Average Nonvested as of December 31, 2021 1,154,721 $ 40.10 Granted 520,020 42.99 Vested (212,210) 45.86 Forfeited (7,114) 43.22 Change in payout rate (114,355) 45.92 Nonvested as of March 31, 2022 1,341,062 $ 39.79 |
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 three months ended March 31, 2022 and 2021, were estimated on the date of grant using the Monte Carlo simulation model, acceptable under ASC 718, Compensation - Stock Compensation , using the following weighted average assumptions: Three Months Ended March 31, 2022 2021 Expected life (years) 3.1 2.8 Risk-free interest rate 1.5 % 0.3 % Expected volatility 40.0 % 41.2 % Expected dividend yield — — |
Restricted Share Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Nonvested Restricted Share Unit Activity | A summary of nonvested restricted share unit awards ("RSUs") is as follows: Number of Weighted Average Nonvested as of December 31, 2021 946,151 $ 33.57 Granted 756,517 31.69 Vested (356,079) 31.72 Forfeited (9,364) 33.38 Nonvested as of March 31, 2022 1,337,225 $ 33.00 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Weighted Average Share Amounts Used to Compute Both Basic and Diluted Earnings (Loss) Per Share | The following table reconciles the weighted average share amounts used to compute both basic and diluted earnings (loss) per share (in thousands): Three Months Ended March 31, 2022 2021 Weighted average shares outstanding: Basic weighted average shares outstanding 115,287 117,491 Add: Dilutive effect of stock options and RSUs 811 — Diluted weighted average shares outstanding 116,098 117,491 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule 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): Three Months Ended March 31, 2022 2021 Revenue Banks $ 132,198 $ 95,917 Merchants 41,002 38,670 Billers 149,880 150,599 Total revenue $ 323,080 $ 285,186 Segment Adjusted EBITDA Banks $ 64,714 $ 37,195 Merchants 14,713 14,725 Billers 26,357 34,021 Depreciation and amortization (31,489) (33,583) Stock-based compensation expense (7,958) (6,703) Corporate and unallocated expenses (38,671) (41,965) Interest, net (7,735) (8,621) Other, net 2,250 (1,382) Income (loss) before income taxes $ 22,181 $ (6,313) |
Schedule of Revenue by Primary Solution Category for Reportable Segments | The following is revenue by primary solution category for the Company’s reportable segments for the periods indicated (in thousands): Three Months Ended March 31, 2022 Banks Merchants Billers Total Primary Solution Categories Bill Payments $ — $ — $ 149,880 $ 149,880 Digital Business Banking 13,488 — — 13,488 Merchant Payments — 41,002 — 41,002 Fraud Management 7,777 — — 7,777 Real-Time Payments 21,927 — — 21,927 Issuing and Acquiring 89,006 — — 89,006 Total $ 132,198 $ 41,002 $ 149,880 $ 323,080 Three Months Ended March 31, 2021 Banks Merchants Billers Total Primary Solution Categories Bill Payments $ — $ — $ 150,599 $ 150,599 Digital Business Banking 15,092 — — 15,092 Merchant Payments — 38,670 — 38,670 Fraud Management 6,224 — — 6,224 Real-Time Payments 13,185 — — 13,185 Issuing and Acquiring 61,416 — — 61,416 Total $ 95,917 $ 38,670 $ 150,599 $ 285,186 Three Months Ended March 31, 2022 2021 Banks Software as a service and platform as a service $ 13,952 $ 14,278 License 54,439 18,018 Maintenance 47,343 48,031 Services 16,464 15,590 Total $ 132,198 $ 95,917 Merchants Software as a service and platform as a service $ 30,767 $ 31,043 License 5,846 3,090 Maintenance 4,038 4,252 Services 351 285 Total $ 41,002 $ 38,670 Billers Software as a service and platform as a service $ 149,843 $ 150,425 License — 94 Maintenance 37 80 Services — — Total $ 149,880 $ 150,599 |
Schedule of Revenue by Geographic Location | The following is the Company's revenue by geographic location for the periods indicated (in thousands): Three Months Ended March 31, 2022 2021 Revenue United States $ 199,315 $ 191,977 Other 123,765 93,209 Total $ 323,080 $ 285,186 |
Schedule 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): March 31, 2022 December 31, 2021 Long-lived Assets United States $ 1,401,232 $ 1,425,391 Other 748,243 745,138 Total $ 2,149,475 $ 2,170,529 |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statements - Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Other current and noncurrent assets and liabilities | $ (24,889) | $ (34,681) |
Net cash flows from operating activities | 28,874 | 69,757 |
Cash flows from financing activities: | ||
Net decrease in settlement assets and liabilities | (605) | (71,264) |
Net cash flows from financing activities | (25,998) | (109,957) |
Net increase (decrease) in cash and cash equivalents | (8,075) | (52,640) |
Cash and cash equivalents, including settlement deposits, beginning of period | 184,142 | 265,382 |
Cash and cash equivalents, including settlement deposits, end of period | $ 176,067 | 212,742 |
Previously Reported | ||
Cash flows from operating activities: | ||
Other current and noncurrent assets and liabilities | (34,315) | |
Net cash flows from operating activities | 70,123 | |
Cash flows from financing activities: | ||
Net decrease in settlement assets and liabilities | 0 | |
Net cash flows from financing activities | (38,693) | |
Net increase (decrease) in cash and cash equivalents | 18,990 | |
Cash and cash equivalents, including settlement deposits, beginning of period | 165,374 | |
Cash and cash equivalents, including settlement deposits, end of period | 184,364 | |
Prior Period Adjustment | ||
Cash flows from operating activities: | ||
Other current and noncurrent assets and liabilities | (366) | |
Net cash flows from operating activities | (366) | |
Cash flows from financing activities: | ||
Net decrease in settlement assets and liabilities | (71,264) | |
Net cash flows from financing activities | (71,264) | |
Net increase (decrease) in cash and cash equivalents | (71,630) | |
Cash and cash equivalents, including settlement deposits, beginning of period | 100,008 | |
Cash and cash equivalents, including settlement deposits, end of period | $ 28,378 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statements - Summary of Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other Current Liabilities | ||
Operating lease liabilities | $ 12,226 | $ 11,518 |
Vendor financed licenses | 9,729 | 12,521 |
Accrued interest | 3,020 | 8,776 |
Royalties payable | 2,331 | 4,102 |
Other | 40,617 | 42,677 |
Total other current liabilities | $ 67,923 | $ 79,594 |
Condensed Consolidated Financ_6
Condensed Consolidated Financial Statements - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Jul. 31, 2019 | Mar. 31, 2022 | Dec. 31, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |||
Amount of off balance sheet settlement funds | $ 198,100 | $ 272,800 | |
Goodwill | 1,280,226 | 1,280,226 | |
Banks | |||
Condensed Financial Statements, Captions [Line Items] | |||
Goodwill | 725,900 | ||
Merchants | |||
Condensed Financial Statements, Captions [Line Items] | |||
Goodwill | 137,300 | ||
Billers | |||
Condensed Financial Statements, Captions [Line Items] | |||
Goodwill | 417,000 | ||
India payment technology and services company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Payments to acquire investment interest | $ 18,300 | ||
Percentage of voting interests acquired | 30.00% | ||
Equity method investment, amount recorded | $ 18,900 | 19,300 | |
Level 2 | Senior Notes | 5.750% Senior Notes due 2026 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Stated interest rate (percentage) | 5.75% | ||
Fair value of long-term debt | $ 411,500 | $ 419,000 |
Revenue - Summary of Total Rece
Revenue - Summary of Total Receivables, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Billed receivables | $ 152,027 | $ 162,479 |
Allowance for doubtful accounts | (2,980) | (2,861) |
Billed receivables, net | 149,047 | 159,618 |
Current accrued receivables, net | 161,731 | 160,787 |
Long-term accrued receivables, net | 276,731 | 276,164 |
Total accrued receivables, net | 438,462 | 436,951 |
Total receivables, net | $ 587,509 | $ 596,569 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Deferred Revenue Arrangement [Line Items] | ||
Revenue allocated to remaining performance obligations | $ 788.8 | |
Revenue allocated to remaining performance obligations, percentage to be recognized over the next 12 months | 45.00% | |
Significant Customer | Revenue Benchmark | Customer Concentration Risk | ||
Deferred Revenue Arrangement [Line Items] | ||
Customer concentration risk, percentage | 13.80% | 13.80% |
Revenue - Summary of Changes in
Revenue - Summary of Changes in Deferred Revenue (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Deferred revenue, beginning balance | $ 110,350 |
Deferral of revenue | 38,201 |
Recognition of deferred revenue | (28,109) |
Foreign currency translation | (133) |
Deferred revenue, ending balance | $ 120,308 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Apr. 05, 2019 | Mar. 31, 2022 | Dec. 31, 2021 | Aug. 21, 2018 |
Debt Instrument [Line Items] | ||||
Long-term debt, amount outstanding | $ 1,098,423,000 | |||
Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate (percentage) | 2.20% | |||
Credit Agreement | Federal Funds Effective 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% | |||
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% | |||
Overdraft Facility | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, amount available | $ 75,000,000 | |||
Amount outstanding on overdraft facility | $ 0 | $ 0 | ||
Overdraft Facility | Credit Agreement | Federal Funds Effective Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.25% | |||
Senior Notes | 5.750% Senior notes, due August 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, amount outstanding | $ 400,000,000 | |||
Debt instrument, face amount | $ 400,000,000 | |||
Issue price percentage of senior notes of the principal amount | 100.00% | |||
Stated interest rate (percentage) | 5.75% | |||
Other | Multi-year License Agreement | ||||
Debt Instrument [Line Items] | ||||
Other long-term debt, amount outstanding | 2,300,000 | $ 2,900,000 | ||
Term Loans | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, amount outstanding | 668,400,000 | |||
Revolving Credit Facility | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit, carrying amount | 30,000,000 | |||
Unused borrowings | 468,500,000 | |||
Debt instrument, term | 5 years | |||
Credit facility, maximum borrowing capacity | $ 500,000,000 | |||
Revolving Credit Facility | Letter of Credit | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Unused borrowings | $ 1,500,000 | |||
Initial Term Loan | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 5 years | |||
Debt instrument, face amount | $ 279,000,000 | |||
Delayed Draw Term Loan | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 5 years | |||
Debt instrument, face amount | $ 500,000,000 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities on Long-Term Debt Outstanding (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2022 | $ 40,694 |
2023 | 69,906 |
2024 | 587,823 |
2025 | 0 |
2026 | 400,000 |
Thereafter | 0 |
Total | $ 1,098,423 |
Debt - Summary of Total Debt (D
Debt - Summary of Total Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Aug. 21, 2018 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,087,158 | $ 1,065,742 | |
Debt issuance costs | (11,265) | (12,418) | |
Less: current portion of term loans | 50,778 | 45,870 | |
Less: current portion of debt issuance costs | (4,522) | (4,561) | |
Total long-term debt | 1,036,380 | 1,019,872 | |
Senior Notes | 5.750% Senior notes, due August 2026 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percentage) | 5.75% | ||
Total debt | 400,000 | 400,000 | |
Term Loans | |||
Debt Instrument [Line Items] | |||
Total debt | 668,423 | 678,160 | |
Less: current portion of term loans | 55,300 | 50,431 | |
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Total debt | $ 30,000 | $ 0 |
Software and Other Intangible_3
Software and Other Intangible Assets - Summary of Carrying Amount and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 273,527 | $ 283,004 |
Software for internal use | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 443,487 | 440,242 |
Accumulated Amortization | (296,535) | (283,109) |
Total | 146,952 | 157,133 |
Software for resale | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 126,934 | 127,904 |
Accumulated Amortization | (126,934) | (127,255) |
Total | 0 | 649 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 570,421 | 568,146 |
Accumulated Amortization | (423,469) | (410,364) |
Total | 146,952 | 157,782 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 507,264 | 507,962 |
Accumulated Amortization | (238,384) | (230,152) |
Total | 268,880 | 277,810 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 23,701 | 23,839 |
Accumulated Amortization | (19,054) | (18,645) |
Total | 4,647 | 5,194 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 530,965 | 531,801 |
Accumulated Amortization | (257,438) | (248,797) |
Total | $ 273,527 | $ 283,004 |
Software and Other Intangible_4
Software and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets amortization expense | $ 9.2 | $ 9.3 |
Software for internal use | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software, amortization expense | 16.7 | 16.9 |
Software for resale | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software, amortization expense | $ 0.7 | $ 2 |
Minimum | Software for internal use | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life (in years) | 3 years | |
Minimum | Software for resale | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life (in years) | 5 years | |
Maximum | Software for internal use | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life (in years) | 8 years | |
Maximum | Software for resale | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life (in years) | 10 years |
Software and Other Intangible_5
Software and Other Intangible Assets - Schedule of Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 273,527 | $ 283,004 |
Software Amortization | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2022 | 46,543 | |
2023 | 44,509 | |
2024 | 27,692 | |
2025 | 20,353 | |
2026 | 7,801 | |
Thereafter | 54 | |
Total | 146,952 | |
Other Intangible Assets Amortization | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2022 | 27,385 | |
2023 | 36,231 | |
2024 | 31,754 | |
2025 | 23,232 | |
2026 | 23,232 | |
Thereafter | 131,693 | |
Total | $ 273,527 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in shares) | 0 | 0 |
Stock-based compensation expense | $ 7,958 | $ 6,703 |
Stock-based compensation expense, tax benefits | 1,100 | 1,000 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incentive plan, total intrinsic value of stock options exercised | $ 900 | $ 3,100 |
Restricted Share Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares vested (in shares) | 356,079 | |
Shares withheld to pay employees' portion of minimum payroll withholding taxes (in shares) | 122,337 | |
Unrecognized compensation costs | $ 39,600 | |
Unrecognized compensation costs, weighted average recognition period | 2 years 4 months 24 days | |
Total Shareholder Return Awards (TSRs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares vested (in shares) | 212,210 | |
Payout rate | 65.00% | |
Vesting performance period | 3 years | |
Shares withheld to pay employees' portion of minimum payroll withholding taxes (in shares) | 47,612 | |
Unrecognized compensation costs | $ 36,100 | |
Unrecognized compensation costs, weighted average recognition period | 2 years 4 months 24 days | |
2017 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued under ESPP (in shares) | 31,406 | 27,117 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Summary of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 1,640,319 |
Exercised (in shares) | shares | (57,083) |
Outstanding, ending balance (in shares) | shares | 1,583,236 |
Exercisable, ending balance (in shares) | shares | 1,583,236 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 18.42 |
Exercised (in dollars per share) | $ / shares | 17.91 |
Ending balance (in dollars per share) | $ / shares | 18.44 |
Weighted average exercise price, exercisable, ending balance (in dollars per share) | $ / shares | $ 18.44 |
Weighted Average Remaining Contractual Term (Years) | |
Weighted average remaining contractual term, outstanding, end of period (in years) | 3 years 1 month 13 days |
Weighted average remaining contractual term, exercisable, end of period (in years) | 3 years 1 month 13 days |
Aggregate Intrinsic Value of In-the-Money Options | |
Aggregate intrinsic value of in-the-money options, outstanding, end of period | $ | $ 20,657,176 |
Aggregate intrinsic value of in-the-money options, exercisable, end of period | $ | $ 20,657,176 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Summary of Nonvested TSRs (Details) - Total Shareholder Return Awards (TSRs) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Shares | |
Nonvested, beginning balance (in shares) | shares | 1,154,721 |
Granted (in shares) | shares | 520,020 |
Vested (in shares) | shares | (212,210) |
Forfeited (in shares) | shares | (7,114) |
Change in payout rate (in shares) | shares | (114,355) |
Nonvested, ending balance (in shares) | shares | 1,341,062 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 40.10 |
Granted (in dollars per share) | $ / shares | 42.99 |
Vested (in dollars per share) | $ / shares | 45.86 |
Forfeited (in dollars per share) | $ / shares | 43.22 |
Change in payout rate (in dollars per share) | $ / shares | 45.92 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 39.79 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Summary of Grant Date Fair Value Weighted Average Assumptions - TSRs (Details) - Total Shareholder Return Awards (TSRs) - Monte Carlo Simulation Valuation Model | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 3 years 1 month 6 days | 2 years 9 months 18 days |
Risk-free interest rate | 1.50% | 0.30% |
Expected volatility | 40.00% | 41.20% |
Expected dividend yield | 0.00% | 0.00% |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Summary of Nonvested RSUs (Details) - Restricted Share Units (RSUs) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Shares | |
Nonvested, beginning balance (in shares) | shares | 946,151 |
Granted (in shares) | shares | 756,517 |
Vested (in shares) | shares | (356,079) |
Forfeited (in shares) | shares | (9,364) |
Nonvested, ending balance (in shares) | shares | 1,337,225 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 33.57 |
Granted (in dollars per share) | $ / shares | 31.69 |
Vested (in dollars per share) | $ / shares | 31.72 |
Forfeited (in dollars per share) | $ / shares | 33.38 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 33 |
Common Stock and Treasury Sto_2
Common Stock and Treasury Stock - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Amount approved for repurchase | $ 250,000,000 | |
Shares repurchased (in shares) | 1,131,248 | |
Shares repurchased, value | $ 37,860,000 | |
Repurchase program, shares repurchased to date (in shares) | 50,488,743 | |
Repurchase program, amount paid for shares repurchased to date | $ 757,600,000 | |
Maximum remaining amount authorized for purchase | $ 178,400,000 |
Earnings (Loss) Per Share - Rec
Earnings (Loss) Per Share - Reconciliation of Weighted Average Share Amounts Used to Compute Basic and Diluted Earnings (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Weighted average shares outstanding: | ||
Basic weighted average shares outstanding (in shares) | 115,287 | 117,491 |
Add: Dilutive effect of stock options and RSUs (in shares) | 811 | 0 |
Diluted weighted average shares outstanding (in shares) | 116,098 | 117,491 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Details) - shares | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from earnings (loss) per share, options to purchase shares and RSUs (in shares) | 1,800,000 | 4,500,000 | |
Common stock outstanding (in shares) | 115,085,627 | 115,730,046 |
Other, Net - Additional Informa
Other, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Other, net | $ 2,250 | $ (1,382) |
Segment Information - Selected
Segment Information - Selected Financial Data (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 323,080 | $ 285,186 |
Depreciation and amortization | (31,489) | (33,583) |
Stock-based compensation expense | (7,958) | (6,703) |
Corporate and unallocated expenses | (38,671) | (41,965) |
Interest, net | (7,735) | (8,621) |
Other, net | 2,250 | (1,382) |
Income (loss) before income taxes | 22,181 | (6,313) |
Operating Segments | Banks | ||
Segment Reporting Information [Line Items] | ||
Revenues | 132,198 | 95,917 |
Segment Adjusted EBITDA | 64,714 | 37,195 |
Operating Segments | Merchants | ||
Segment Reporting Information [Line Items] | ||
Revenues | 41,002 | 38,670 |
Segment Adjusted EBITDA | 14,713 | 14,725 |
Operating Segments | Billers | ||
Segment Reporting Information [Line Items] | ||
Revenues | 149,880 | 150,599 |
Segment Adjusted EBITDA | $ 26,357 | $ 34,021 |
Segment Information - Selecte_2
Segment Information - Selected Financial Data, Revenues and Long lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 323,080 | $ 285,186 | |
Long-lived Assets | |||
Long-lived assets | 2,149,475 | $ 2,170,529 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 199,315 | 191,977 | |
Long-lived Assets | |||
Long-lived assets | 1,401,232 | 1,425,391 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 123,765 | 93,209 | |
Long-lived Assets | |||
Long-lived assets | 748,243 | $ 745,138 | |
Bill Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 149,880 | 150,599 | |
Digital Business Banking | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 13,488 | 15,092 | |
Merchant Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 41,002 | 38,670 | |
Fraud Management | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 7,777 | 6,224 | |
Real-Time Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 21,927 | 13,185 | |
Issuing and Acquiring | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 89,006 | 61,416 | |
License | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 60,285 | 21,202 | |
Maintenance | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 51,418 | 52,363 | |
Operating Segments | Banks | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 132,198 | 95,917 | |
Operating Segments | Banks | Bill Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Banks | Digital Business Banking | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 13,488 | 15,092 | |
Operating Segments | Banks | Merchant Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Banks | Fraud Management | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 7,777 | 6,224 | |
Operating Segments | Banks | Real-Time Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 21,927 | 13,185 | |
Operating Segments | Banks | Issuing and Acquiring | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 89,006 | 61,416 | |
Operating Segments | Banks | Software as a service and platform as a service | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 13,952 | 14,278 | |
Operating Segments | Banks | License | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 54,439 | 18,018 | |
Operating Segments | Banks | Maintenance | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 47,343 | 48,031 | |
Operating Segments | Banks | Services | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 16,464 | 15,590 | |
Operating Segments | Merchants | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 41,002 | 38,670 | |
Operating Segments | Merchants | Bill Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Merchants | Digital Business Banking | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Merchants | Merchant Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 41,002 | 38,670 | |
Operating Segments | Merchants | Fraud Management | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Merchants | Real-Time Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Merchants | Issuing and Acquiring | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Merchants | Software as a service and platform as a service | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 30,767 | 31,043 | |
Operating Segments | Merchants | License | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 5,846 | 3,090 | |
Operating Segments | Merchants | Maintenance | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 4,038 | 4,252 | |
Operating Segments | Merchants | Services | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 351 | 285 | |
Operating Segments | Billers | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 149,880 | 150,599 | |
Operating Segments | Billers | Bill Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 149,880 | 150,599 | |
Operating Segments | Billers | Digital Business Banking | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Billers | Merchant Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Billers | Fraud Management | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Billers | Real-Time Payments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Billers | Issuing and Acquiring | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 0 | |
Operating Segments | Billers | Software as a service and platform as a service | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 149,843 | 150,425 | |
Operating Segments | Billers | License | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 0 | 94 | |
Operating Segments | Billers | Maintenance | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 37 | 80 | |
Operating Segments | Billers | Services | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate, percentage | 30.00% | 69.00% | |
Loss of foreign entities | $ 30.9 | $ (0.6) | |
Unrecognized tax benefit for uncertain tax positions | 24.3 | $ 24.5 | |
Liabilities for interest and penalties, excluded from unrecognized tax benefits for uncertain tax positions | 1.1 | $ 1.1 | |
Decrease in unrecognized tax benefits due to the settlement of various audits and expiration of statutes of limitations | $ 5.8 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Mar. 31, 2022lawsuit |
Commitments and Contingencies Disclosure [Abstract] | |
Number of class action lawsuits filed | 7 |