Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 23, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ACIW | ||
Entity Registrant Name | ACI WORLDWIDE, INC. | ||
Entity Central Index Key | 935036 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 115,879,610 | ||
Entity Public Float | $2,087,581,458 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $77,301 | $95,059 |
Receivables, net of allowances of $4,806 and $4,459, respectively | 227,106 | 203,575 |
Deferred income taxes, net | 44,349 | 47,593 |
Recoverable income taxes | 4,781 | 2,258 |
Prepaid expenses | 24,314 | 22,549 |
Other current assets | 40,417 | 65,328 |
Total current assets | 418,268 | 436,362 |
Property and equipment, net | 60,360 | 57,347 |
Software, net | 209,507 | 191,468 |
Goodwill | 781,163 | 669,217 |
Intangible assets, net | 261,436 | 237,693 |
Deferred income taxes, net | 50,187 | 48,852 |
Other noncurrent assets, including $33.8 million for assets at fair value at December 31, 2014 | 69,779 | 40,912 |
TOTAL ASSETS | 1,850,700 | 1,681,851 |
Current liabilities | ||
Accounts payable | 50,351 | 43,658 |
Employee compensation | 35,299 | 35,623 |
Current portion of long-term debt | 87,352 | 47,313 |
Deferred revenue | 131,808 | 122,045 |
Income taxes payable | 6,276 | 1,192 |
Deferred income taxes, net | 225 | 753 |
Other current liabilities | 67,505 | 95,016 |
Total current liabilities | 378,816 | 345,600 |
Noncurrent liabilities | ||
Deferred revenue | 49,224 | 45,656 |
Long-term debt | 804,583 | 708,070 |
Deferred income taxes, net | 13,217 | 11,000 |
Other noncurrent liabilities | 23,455 | 27,831 |
Total liabilities | 1,269,295 | 1,138,157 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity | ||
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at December 31, 2014 and 2013 | ||
Common stock; $0.005 par value; 280,000,000 shares authorized; 139,820,388 shares issued at December 31, 2014 and 2013 | 698 | 698 |
Additional paid-in capital | 551,713 | 542,697 |
Retained earnings | 331,415 | 263,855 |
Treasury stock, at cost, 24,182,584 and 23,255,421 shares at December 31, 2014 and 2013, respectively | -282,538 | -240,241 |
Accumulated other comprehensive loss | -19,883 | -23,315 |
Total stockholders' equity | 581,405 | 543,694 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,850,700 | $1,681,851 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $4,806,000 | $4,459,000 |
Other noncurrent assets at fair value | $33,800,000 | |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 280,000,000 | 280,000,000 |
Common stock, shares issued | 139,820,388 | 139,820,388 |
Treasury stock, shares | 24,182,584 | 23,255,421 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Revenues | ||||||||||||||||||||||
License | $80,425 | $57,653 | $61,377 | $35,702 | $82,625 | $56,236 | $53,714 | $41,356 | $235,157 | $233,931 | $221,846 | |||||||||||
Maintenance | 67,421 | 63,764 | 62,309 | 62,499 | 69,033 | 60,457 | 57,830 | 58,634 | 255,993 | 245,954 | 199,876 | |||||||||||
Services | 29,811 | 28,194 | 24,991 | 22,588 | 40,952 | 30,240 | 26,964 | 23,929 | 105,584 | 122,085 | 131,536 | |||||||||||
Hosting | 112,567 | 100,033 | 106,131 | 100,684 | 90,552 | 67,006 | 67,322 | 38,078 | 419,415 | 262,958 | 113,321 | |||||||||||
Total revenues | 290,224 | 249,644 | 254,808 | 221,473 | 283,162 | 213,939 | 205,830 | 161,997 | 1,016,149 | 864,928 | 666,579 | |||||||||||
Operating expenses | ||||||||||||||||||||||
Cost of license | 6,499 | [1] | 5,433 | [1] | 6,897 | [1] | 5,736 | [1] | 7,349 | [1] | 5,888 | [1] | 6,169 | [1] | 5,918 | [1] | 24,565 | [1] | 25,324 | [1] | 23,592 | [1] |
Cost of maintenance, services and hosting | 104,390 | [1] | 105,319 | [1] | 112,595 | [1] | 107,887 | [1] | 93,123 | [1] | 80,948 | [1] | 82,573 | [1] | 61,871 | [1] | 430,191 | [1] | 318,515 | [1] | 202,052 | [1] |
Research and development | 31,554 | 36,321 | 38,876 | 37,456 | 33,375 | 33,642 | 38,391 | 37,149 | 144,207 | 142,557 | 133,759 | |||||||||||
Selling and marketing | 29,053 | 27,078 | 28,007 | 27,909 | 23,118 | 24,098 | 27,538 | 25,074 | 112,047 | 99,828 | 87,054 | |||||||||||
General and administrative | 19,938 | 25,329 | 24,682 | 25,116 | 23,557 | 24,559 | 26,147 | 25,037 | 95,065 | 99,300 | 108,747 | |||||||||||
Depreciation and amortization | 19,519 | 18,295 | 17,010 | 17,078 | 16,660 | 15,249 | 13,490 | 10,957 | 71,902 | 56,356 | 37,003 | |||||||||||
Total operating expenses | 210,953 | 217,775 | 228,067 | 221,182 | 197,182 | 184,384 | 194,308 | 166,006 | 877,977 | 741,880 | 592,207 | |||||||||||
Operating income | 79,271 | 31,869 | 26,741 | 291 | 85,980 | 29,555 | 11,522 | -4,009 | 138,172 | 123,048 | 74,372 | |||||||||||
Other income (expense) | ||||||||||||||||||||||
Interest expense | -10,818 | -10,416 | -9,329 | -9,175 | -9,818 | -7,453 | -6,053 | -3,897 | -39,738 | -27,221 | -10,417 | |||||||||||
Interest income | 143 | 98 | 135 | 199 | 158 | 159 | 211 | 131 | 575 | 659 | 914 | |||||||||||
Other, net | 1,104 | 3,614 | -3,901 | -1,057 | -1,821 | -3,152 | -1,519 | 3,165 | -240 | -3,327 | 399 | |||||||||||
Total other income (expense) | -9,571 | -6,704 | -13,095 | -10,033 | -11,481 | -10,446 | -7,361 | -601 | -39,403 | -29,889 | -9,104 | |||||||||||
Income before income taxes | 69,700 | 25,165 | 13,646 | -9,742 | 74,499 | 19,109 | 4,161 | -4,610 | 98,769 | 93,159 | 65,268 | |||||||||||
Income tax expense | 23,334 | 9,433 | 2,409 | -3,967 | 24,108 | 5,347 | 2,280 | -2,444 | 31,209 | 29,291 | 16,422 | |||||||||||
Net income | $46,366 | $15,732 | $11,237 | ($5,775) | $50,391 | $13,762 | $1,881 | ($2,166) | $67,560 | $63,868 | $48,846 | |||||||||||
Earnings per common share | ||||||||||||||||||||||
Basic | $0.40 | $0.14 | $0.10 | ($0.05) | $0.43 | [2],[3] | $0.12 | [2],[3] | $0.02 | [2],[3] | ($0.02) | [2],[3] | $0.59 | $0.54 | [2],[3] | $0.42 | ||||||
Diluted | $0.40 | $0.14 | $0.10 | ($0.05) | $0.43 | [2],[3] | $0.12 | [2],[3] | $0.02 | [2],[3] | ($0.02) | [2],[3] | $0.58 | $0.53 | [2],[3] | $0.41 | ||||||
Weighted average common shares outstanding | ||||||||||||||||||||||
Basic | 114,798 | 117,885 | 116,089 | |||||||||||||||||||
Diluted | 116,771 | 120,054 | 119,716 | |||||||||||||||||||
[1] | The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charges for depreciation. | |||||||||||||||||||||
[2] | The sum of the earnings per share by quarter does not agree to the earnings per share for the year ended December 31, 2013 due to rounding. | |||||||||||||||||||||
[3] | Earnings (loss) per share balances by quarter have been retroactively adjusted for the three-for-one stock split approved on July 10, 2014. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $67,560 | $63,868 | $48,846 |
Other comprehensive income (loss): | |||
Unrealized gain on available-for-sale securities | 22,977 | 963 | |
Reclassification of unrealized gain to a realized gain on available-for-sale securities | -1,557 | ||
Foreign currency translation adjustments | -19,545 | -9,284 | 3,824 |
Total other comprehensive income (loss): | 3,432 | -9,284 | 3,230 |
Comprehensive income | $70,992 | $54,584 | $52,076 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Common Stock Warrants | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands | |||||||
Beginning Balance at Dec. 31, 2011 | $317,330 | $612 | $24,003 | ($163,411) | $322,246 | $151,141 | ($17,261) |
Net income | 48,846 | 48,846 | |||||
Other comprehensive income (loss) | 3,230 | 3,230 | |||||
Issuance of 17,355,840 shares of common stock for acquisition of S1 Corporation | 204,856 | 86 | 204,770 | ||||
Issuance of 286,500 shares from treasury stock for acquisition of S1 Corporation | 2,174 | 2,174 | |||||
Repurchase of common stock | -57,836 | -57,836 | |||||
Issuance of 1,084,410 shares from treasury stock for common stock warrant exercises | 11,866 | -2,769 | 9,404 | 5,231 | |||
Cash settlement of common stock warrants | -29,596 | -21,234 | -8,362 | ||||
Stock-based compensation | 15,186 | 15,186 | |||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 21,574 | 26,158 | -4,584 | ||||
Repurchase of restricted stock for tax withholdings | -3,273 | -3,273 | |||||
Ending Balance at Dec. 31, 2012 | 534,357 | 698 | -186,784 | 534,487 | 199,987 | -14,031 | |
Net income | 63,868 | 63,868 | |||||
Other comprehensive income (loss) | -9,284 | -9,284 | |||||
Repurchase of common stock | -80,912 | -80,912 | |||||
Stock-based compensation | 13,572 | 13,572 | |||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 28,315 | 33,677 | -5,362 | ||||
Repurchase of restricted stock and performance shares for tax withholdings | -6,222 | -6,222 | |||||
Ending Balance at Dec. 31, 2013 | 543,694 | 698 | -240,241 | 542,697 | 263,855 | -23,315 | |
Net income | 67,560 | 67,560 | |||||
Other comprehensive income (loss) | 3,432 | 3,432 | |||||
Repurchase of common stock | -70,000 | -70,000 | |||||
Stock-based compensation | 11,045 | 11,045 | |||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 30,794 | 32,823 | -2,029 | ||||
Repurchase of restricted stock and performance shares for tax withholdings | -5,120 | -5,120 | |||||
Ending Balance at Dec. 31, 2014 | $581,405 | $698 | ($282,538) | $551,713 | $331,415 | ($19,883) |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance of shares of common stock for acquisition of S1 Corporation | 17,355,840 | ||
Issuance of shares from treasury stock for acquisition of S1 Corporation | 286,500 | ||
Repurchase of common stock, shares | 3,578,427 | 4,970,424 | 4,313,076 |
Issuance of shares from treasury stock for common stock warrant exercises | 1,084,410 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $67,560 | $63,868 | $48,846 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation | 20,506 | 18,751 | 13,284 |
Amortization | 66,177 | 51,216 | 37,497 |
Amortization of deferred debt issuance costs | 5,877 | 5,388 | 2,450 |
Deferred income taxes | 8,437 | 9,573 | 4,775 |
Stock-based compensation expense | 11,045 | 13,572 | 15,186 |
Excess tax benefit of stock options exercised | -11,807 | -6,960 | -3,543 |
Other | 1,852 | -593 | 150 |
Changes in operating assets and liabilities, net of impact of acquisitions: | |||
Receivables | -30,643 | 22,496 | -61,965 |
Accounts payable | -3,422 | -13,548 | 5,981 |
Accrued employee compensation | -6,360 | -24,501 | -29,026 |
Repayment of IBM Alliance agreement liability | -20,667 | ||
Current income taxes | 10,968 | 9,360 | -5,660 |
Deferred revenue | 15,738 | -23,613 | -11,816 |
Other current and noncurrent assets and liabilities | -6,902 | 13,409 | -4,757 |
Net cash flows from operating activities | 149,026 | 138,418 | -9,265 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -17,627 | -21,104 | -13,050 |
Purchases of software and distribution rights | -17,273 | -11,497 | -3,612 |
Acquisition of businesses, net of cash acquired | -204,290 | -378,113 | -325,232 |
Other | -1,500 | -1,046 | |
Net cash flows from investing activities | -240,690 | -410,714 | -342,940 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 2,780 | 2,186 | 1,426 |
Proceeds from exercises of stock options | 16,461 | 19,561 | 16,730 |
Excess tax benefit of stock options exercised | 11,807 | 6,960 | 3,543 |
Repurchases of common stock | -70,000 | -80,912 | -57,836 |
Repurchase of restricted stock and performance shares for tax withholdings | -5,120 | -6,222 | -3,273 |
Proceeds from exercises of common stock warrants | 11,866 | ||
Cash settlement of common stock warrants | -29,596 | ||
Proceeds from revolving credit facility | 169,500 | 40,000 | 119,000 |
Proceeds from term portion of credit agreement | 150,000 | 300,000 | 200,000 |
Proceeds from issuance of senior notes | 300,000 | ||
Repayments of revolving credit facility | -125,500 | -228,000 | -6,000 |
Repayment of term portion of credit agreement | -57,449 | -30,867 | -13,750 |
Payments on other debt and capital leases | -8,344 | -14,024 | -7,115 |
Payment for debt issuance costs | -4,662 | -17,042 | -1,094 |
Distribution to noncontrolling interest | -1,391 | ||
Net cash flows from financing activities | 78,082 | 291,640 | 233,901 |
Effect of exchange rate fluctuations on cash | -4,176 | -614 | -2,465 |
Net increase (decrease) in cash and cash equivalents | -17,758 | 18,730 | -120,769 |
Cash and cash equivalents, beginning of period | 95,059 | 76,329 | 197,098 |
Cash and cash equivalents, end of period | 77,301 | 95,059 | 76,329 |
Supplemental cash flow information | |||
Income taxes paid, net | 23,082 | 20,191 | 28,900 |
Interest paid | $33,269 | $14,598 | $8,275 |
Nature_of_Business_and_Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Nature of Business and Summary of Significant Accounting Policies | 1. Nature of Business and Summary of Significant Accounting Policies | ||||||||||||||||
Nature of Business | |||||||||||||||||
ACI Worldwide, Inc., a Delaware corporation, and its subsidiaries (collectively referred to as “ACI” or the “Company”), develop, market, install, and support a broad line of software products and services primarily focused on facilitating electronic payments. In addition to its own products, the Company distributes, or acts as a sales agent for software developed by third parties. These products and services are used principally by financial institutions, retailers, and electronic-payment processors, both in domestic and international markets. | |||||||||||||||||
Consolidated Financial Statements | |||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Recently acquired subsidiaries that are included in the Company’s consolidated financial statements as of the date of their acquisition include: Retail Decisions Europe Limited (“ReD Europe”) and all its subsidiaries and Retail Decisions, Inc. (“ReD, Inc.”) (collectively “ReD”) acquired during the year ended December 31, 2014, Official Payments Holdings, Inc. (“OPAY”), Online Resources Corporation (“ORCC”), and Profesionales en Transacciones Electonicas S.A. (“PTESA”) acquired during the year ended December 31, 2013 and S1 Corporation (“S1”), North Data Uruguay S.A. (“North Data”), and Distra Pty Ltd. (“Distra”) acquired during the year ended December 31, 2012. All intercompany balances and transactions have been eliminated. | |||||||||||||||||
Capital Stock | |||||||||||||||||
The Company’s outstanding capital stock consists of a single class of common stock. Each share of common stock is entitled to one vote upon each matter subject to a stockholders vote and to dividends if and when declared by the Board of Directors. | |||||||||||||||||
On April 10, 2014, the Company announced that its Board of Directors approved a three-for-one stock split of the Company’s common stock, which was affected in the form of a common stock dividend distributed on July 10, 2014. The Company’s par value remained $0.005 per common share, resulting in an adjustment to increase the total common stock balance with an equal and offsetting adjustment to additional paid-in-capital. Stockholders’ equity and all references to share and per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the three-for-one stock split for all periods presented. | |||||||||||||||||
Noncontrolling Interest | |||||||||||||||||
On April 10, 2014, the Company dissolved its partnership based in South Africa with Cornastone Technology Investments (Proprietary) Limited (“CTI”). As a result, the Company paid CTI approximately $1.5 million during the year-ended December 31, 2014 for CTI’s noncontrolling interest and loan balance. Noncontrolling interest in this partnership of $1.1 million was included in other noncurrent liabilities as of December 31, 2013. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Revenue Recognition, Receivables and Deferred Revenue | |||||||||||||||||
License. The Company recognizes license revenue in accordance with ASC 985-605, Revenue Recognition: Software. For software license arrangements for which services rendered are primarily related to installation of core software and are not considered essential to the functionality of the software, the Company recognizes revenue upon delivery, provided (i) there is persuasive evidence of an arrangement, (ii) collection of the fee is considered probable and (iii) the fee is fixed or determinable. In most arrangements, vendor-specific objective evidence (“VSOE”) of fair value does not exist for the license element; therefore, the Company uses the residual method under ASC 985-605 to determine the amount of revenue to be allocated to the license element. Under ASC 985-605, the fair value of all undelivered elements, such as post contract customer support (maintenance or “PCS”) or other products or services, is deferred and subsequently recognized as the products are delivered or the services are performed, with the residual difference between the total arrangement fee and revenues allocated to undelivered elements being allocated to the delivered element. | |||||||||||||||||
When a software license arrangement includes services to provide significant modification or customization of software, those services are considered essential to the functionality of the software and are not separable from the software. These arrangements are accounted for in accordance with ASC 605-35, Revenue Recognition: Construction-Type and Production-Type Contracts, generally referred to as contract accounting. Under contract accounting, the Company generally uses the percentage-of-completion method. For those contracts subject to percentage-of-completion contract accounting, estimates of total revenue and profitability under the contract consider amounts due under extended payment terms. The Company recognizes revenue under these arrangements based on the lesser of payments that become due or the revenue calculated under the percentage-of-completion method. Under the percentage-of-completion method, the Company records revenue for the license and services over the development and implementation period, with the percentage of completion generally measured by the percentage of labor hours incurred to-date to estimated total labor hours for each contract. In the event project profitability is assured and estimable within a range, percentage-of-completion revenue recognition is computed using the lowest level of profitability in the range. If it is determined that a loss will result from the performance of a contract, the entire amount of the loss is recognized in the period in which it is determined that a loss will result. | |||||||||||||||||
For software license arrangements in which a significant portion of the fee is due more than 12 months after delivery or when payment terms are significantly beyond the Company’s standard business practice, the license is deemed not to be fixed or determinable. For software license arrangements in which the fee is not considered fixed or determinable, the license is recognized as revenue as payments become due and payable, provided all other conditions for revenue recognition have been met. For software license arrangements in which the Company has concluded that collection of the fees is not probable, revenue is recognized as cash is collected, provided all other conditions for revenue recognition have been met. In making the determination of collectability, the Company considers the creditworthiness of the customer, economic conditions in the customer’s industry and geographic location, and general economic conditions. | |||||||||||||||||
ASC 985-605 requires the seller of software that includes PCS to establish VSOE of fair value of the undelivered element of the contract in order to account separately for the PCS revenue. The Company has traditionally established VSOE of the fair value of PCS by reference to stated renewals, expressed in dollar terms, or separate sales with consistent pricing of PCS expressed in percentage terms. In determining whether a stated renewal is not substantive, the Company considers factors such as whether the period of the initial PCS term is relatively long when compared to the term of the software license or whether the PCS renewal rate is significantly below the Company’s normal pricing practices. In determining whether PCS pricing is consistent, the Company considers the population of separate sales that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period. | |||||||||||||||||
For those software license arrangements that include customer-specific acceptance provisions, such provisions are generally presumed to be substantive and the Company does not recognize revenue until the earlier of the receipt of a written customer acceptance, objective demonstration that the delivered product meets the customer-specific acceptance criteria or the expiration of the acceptance period. The Company recognizes revenues on such arrangements upon the earlier of receipt of written acceptance or the first production use of the software by the customer. In the absence of customer-specific acceptance provisions, software license arrangements generally grant customers a right of refund or replacement only if the licensed software does not perform in accordance with its published specifications. If the Company’s product history supports an assessment by management that the likelihood of non-acceptance is remote, the Company recognizes revenue when all other criteria of revenue recognition are met. | |||||||||||||||||
For software license arrangements in which the Company acts as a sales agent for another company’s products, revenues are recorded on a net basis. These include arrangements in which the Company does not take title to the products, is not responsible for providing the product or service, earns a fixed commission, or assumes credit risk only to the extent of its commission. For software license arrangements in which the Company acts as a distributor of another company’s product, and in certain circumstances, modifies or enhances the product, revenues are recorded on a gross basis. These include arrangements in which the Company takes title to the products and is responsible for providing the product or service. | |||||||||||||||||
For software license arrangements in which the Company utilizes a third-party distributor or sales agent, the Company recognizes revenue on a sell-in basis when business practices and operating history indicate that there is no risk of returns, rebates, or credits and there are no other risks related to the distributor or sales agents’ ability to honor payment or distribution commitments. For other arrangements in which any of the above factors indicate that there are risks of returns, rebates, or credits or any other risks related to the distributors’ or sales agents’ ability to honor payment or distribution commitments, the Company recognizes revenue on a sell-through basis. | |||||||||||||||||
For software license arrangements in which the Company permits the customer to receive unspecified future software products during the software license term, the Company recognizes revenue ratably over the license term, provided all other revenue recognition criteria have been met. For software license arrangements in which the Company grants the customer a right to exchange the original software product for specified future software products with more than minimal differences in features, functionality, and/or price, during the license term, revenue is recognized upon the earlier of delivery of the additional software products or at the time the exchange right lapses. For customers granted a right to exchange the original software product for specified future software products where the Company has determined price, feature, and functionality differences are minimal, the exchange right is accounted for as a like-kind exchange and revenue is recognized upon delivery of the currently licensed product. For software license arrangements in which the customer is charged variable license fees based on usage of the product, the Company recognizes revenue as usage occurs over the term of the licenses, provided all other revenue recognition criteria have been met. | |||||||||||||||||
Effective July 2013, the Company establishes VSOE of fair value of PCS by reference to stated renewals for all identified market segments. The Company continues to consider factors such as whether the period of the initial PCS term is relatively long when compared to the term of the software license or whether the PCS renewal is significantly below the Company’s normal pricing practices. In determining whether PCS pricing is significantly below the Company’s normal pricing practice, the Company considers the population of stated renewal rates that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period. The change in estimation methodology does not have a material effect on our financial statements. | |||||||||||||||||
Certain of the Company’s software license arrangements include PCS terms that fail to achieve VSOE of fair value due to non-substantive renewal periods, or contain a range of possible non-substantive PCS renewal amounts. For these arrangements, VSOE of fair value of PCS does not exist and revenues for the software license, PCS and services, if applicable, are considered to be one accounting unit and are therefore recognized ratably over the longer of the contractual service term or PCS term once the delivery of both services has commenced. The Company typically classifies revenues associated with these arrangements in accordance with the contractually specified amounts, which approximate fair value assigned to the various elements, including software license, maintenance and services, if applicable. | |||||||||||||||||
This allocation methodology has been applied to the following amounts included in revenues in the consolidated statements of income from arrangements for which VSOE of fair value does not exist for each undelivered element (in thousands): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
License | $ | 22,211 | $ | 22,190 | $ | 38,226 | |||||||||||
Maintenance | 7,699 | 9,649 | 14,178 | ||||||||||||||
Services | 13 | 10 | 830 | ||||||||||||||
Total | $ | 29,923 | $ | 31,849 | $ | 53,234 | |||||||||||
Maintenance. The Company typically enters into multi-year time-based software license arrangements that vary in length but are generally five years. These arrangements include an initial (bundled) PCS term of one year with subsequent renewals for additional years within the initial license period. Effective July 2013, the Company establishes VSOE of the fair value of PCS by reference to stated renewals for all identified market segments. For arrangements in which the Company looks to substantive renewal rates to evidence VSOE of fair value of PCS and in which the PCS renewal rate and term are substantive, VSOE of fair value of PCS is determined by reference to the stated renewal rate. For these arrangements, PCS revenues are recognized ratably over the PCS term specified in the contract. In arrangements where VSOE of fair value of PCS cannot be determined (for example, a time-based software license with a duration of one year or less or when the range of possible PCS renewal amounts is not sufficiently narrow or is significantly below the Company’s normal pricing practices), the Company recognizes revenue for the entire arrangement ratably over the longer of the initial PCS term or the Services term (if any). | |||||||||||||||||
For those arrangements that meet the criteria to be accounted for under contract accounting, the Company determines whether VSOE of fair value exists for the PCS element. For those arrangements in which VSOE of fair value exists for the PCS element, PCS is accounted for separately and the balance of the arrangement is accounted for under ASC 985-605. For those arrangements in which VSOE of fair value does not exist for the PCS element all revenue is deferred until such time as the services are complete. Once services are complete, revenue is then recognized ratably over the remaining PCS period. | |||||||||||||||||
Services. The Company provides various professional services to customers, primarily project management, software implementation and software modification services. Revenues from arrangements to provide professional services are generally recognized as the related services are performed. | |||||||||||||||||
For those arrangements in which services revenue is deferred and the Company determines that the direct costs of services are recoverable, such costs are deferred and subsequently expensed in proportion to the related services revenue as it is recognized. For those arrangements that are accounted for under contract accounting, the Company accumulates and defers all direct and indirect costs allocable to the arrangement. For those arrangements that are not accounted for under contract accounting, the Company accumulates and defers all direct and incremental costs attributable to the arrangement. | |||||||||||||||||
Hosting. In accordance with ASC 605-25, Revenue Recognition – Multiple-Element Arrangements, a multiple-deliverable arrangement is separated into more than one unit of accounting if the delivered item(s) has value to the customer on a stand-alone basis, if the arrangement includes a general right of return relative to the delivered item(s), and if delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. If these criteria are not met, the arrangement is accounted for as a single unit of accounting which would result in revenue being recognized ratably over the contract term or being deferred until the earlier of when such criteria are met or when the last undelivered element is delivered. If these criteria are met for each, the arrangement consideration is allocated to the separate units of accounting based on each unit’s relative selling price. The selling price for each element is based upon the following selling price hierarchy: VSOE if available, third party evidence (“TPE”) if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available. | |||||||||||||||||
The Company enters into hosting-related arrangements that may consist of multiple service deliverables including initial implementation and setup services, on-going support services, and other services. The Company’s hosted products operate in a highly regulated and controlled environment which requires a highly specialized and unique set of initial implementation and setup services prior to the commencement of hosting-related services. Due to the essential and specialized nature of the implementation and setup services, these services do not qualify as separate units of accounting separate from the hosting service as the delivered services do not have value to the customer on a stand-alone basis. The on-going support and other services are considered as separate units of accounting as are add-on products that do not impact the availability of functionality currently in use. The total arrangement consideration is allocated to each of the separate units of accounting based on their relative selling price and revenue is recognized over their respective service periods. | |||||||||||||||||
Hosting revenue also includes fees paid by our clients as a part of the acquired electronic bill presentment and payment products. Fees may be paid by our clients or directly by their customers and may be a percentage of the underlying transaction amount, a fixed fee per executed transaction or a monthly fee for each customer enrolled. Hosting costs include payment card interchange fees, assessments payable to banks and payment card processing fees. | |||||||||||||||||
Multiple Arrangements. The Company may execute more than one contract or agreement with a single customer. The separate contracts or agreements may be viewed as one multiple-element arrangement or separate agreements for revenue recognition purposes. The Company evaluates whether the agreements were negotiated as part of a single project, whether the products or services are interrelated or interdependent, whether fees in one arrangement are tied to performance in another arrangement, and whether elements in one arrangement are essential to the functionality in another arrangement in order to reach appropriate conclusions regarding whether such arrangements are related or separate. The conclusions reached can impact the timing of revenue recognition related to those arrangements. | |||||||||||||||||
Deferred Revenue. Deferred revenue includes amounts currently due and payable from customers, and payments received from customers, for software licenses, maintenance, hosting and/or services in advance of recording the related revenue. | |||||||||||||||||
Receivables and Concentration of Credit Risk. Receivables represent amounts billed and amounts earned that are to be billed in the near future. Included in accrued receivables are services and software hosting revenues earned in the current period but billed in the following period as well as license revenues that are determined to be fixed and determinable but billed in future periods. | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Billed Receivables | $ | 200,392 | $ | 173,100 | |||||||||||||
Allowance for doubtful accounts | (4,806 | ) | (4,459 | ) | |||||||||||||
Billed, net | 195,586 | 168,641 | |||||||||||||||
Accrued Receivables | 31,520 | 34,934 | |||||||||||||||
Receivables, net | $ | 227,106 | $ | 203,575 | |||||||||||||
No customer accounted for more than 10% of the Company’s consolidated receivables balance as of December 31, 2014 or 2013. | |||||||||||||||||
The Company maintains a general allowance for doubtful accounts based on historical experience, along with additional customer-specific allowances. The Company regularly monitors credit risk exposures in accounts receivable. In estimating the necessary level of our allowance for doubtful accounts, management considers the aging of accounts receivable, the creditworthiness of customers, economic conditions within the customer’s industry, and general economic conditions, among other factors. | |||||||||||||||||
The following reflects activity in the Company’s allowance for doubtful accounts receivable (in thousands): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance, beginning of period | $ | (4,459 | ) | $ | (8,117 | ) | $ | (4,843 | ) | ||||||||
Provision (increase) decrease | (1,049 | ) | 1,161 | (3,173 | ) | ||||||||||||
Amounts written off, net of recoveries | 1,053 | 2,296 | 35 | ||||||||||||||
Foreign currency translation adjustments and other | (351 | ) | 201 | (136 | ) | ||||||||||||
Balance, end of period | $ | (4,806 | ) | $ | (4,459 | ) | $ | (8,117 | ) | ||||||||
Provision (increases) decreases recorded in general and administrative expenses during the years ended December 31, 2014, 2013, 2012 reflect increases (decreases) in the allowance for doubtful accounts based upon collection experience in the geographic regions in which the Company conducts business, net of collection of customer-specific receivables which were previously reserved for as doubtful of collection. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash and cash equivalents includes holdings in checking, savings, money market and overnight sweep accounts, all of which have daily maturities, as well as time deposits with maturities of three months or less at the date of purchase. The carrying amounts of cash and cash equivalents on the consolidated balance sheets approximate fair value. | |||||||||||||||||
Other Current Assets and Other Current Liabilities | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Settlement deposits | $ | 13,252 | $ | 27,770 | |||||||||||||
Settlement receivables | 11,032 | 20,119 | |||||||||||||||
Current debt issuance costs | 6,244 | 5,276 | |||||||||||||||
Other | 9,889 | 12,163 | |||||||||||||||
Total other current assets | $ | 40,417 | $ | 65,328 | |||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Settlement payables | $ | 21,715 | $ | 42,841 | |||||||||||||
Accrued interest | 7,256 | 7,074 | |||||||||||||||
Vendor financed licenses | 7,340 | 6,410 | |||||||||||||||
Royalties payable | 4,070 | 5,627 | |||||||||||||||
Other | 27,124 | 33,064 | |||||||||||||||
Total other current liabilities | $ | 67,505 | $ | 95,016 | |||||||||||||
Individuals and businesses settle their obligations to the Company’s various Clients, primarily utility and other public sector Clients, using credit or debit cards or via ACH payments. The Company creates a receivable for the amount due from the credit or debit card company and an offsetting payable to the Client. Once confirmation is received that the funds have been received, the Company settles the obligation to the Client. Due to timing, in some instances, the Company may 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. | |||||||||||||||||
Off Balance Sheet Settlement Accounts | |||||||||||||||||
The Company also enters into agreements with certain clients to process payment funds on their behalf. When an automated clearing house 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, the settlement accounts are not included in the Company’s balance sheet. The Company is entitled to interest earned on the fund balances. The collection of interest on these settlement accounts is considered in the Company’s determination of its fee structure for clients and represents a portion of the payment for services performed by the Company. The amount of settlement funds as of December 31, 2014 and 2013 were $224.9 million and $284.0 million, respectively. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over their estimated useful lives based on asset class. As of December 31, 2014 and 2013, net property and equipment consisted of the following (in thousands): | |||||||||||||||||
Useful Lives | 2014 | 2013 | |||||||||||||||
Computer and office equipment | 3 to 5 years | $ | 81,850 | $ | 72,163 | ||||||||||||
Leasehold improvements | Lesser of useful life of improvement or remaining life of lease | 17,193 | 15,210 | ||||||||||||||
Furniture and fixtures | 7 years | 11,202 | 10,537 | ||||||||||||||
Building and improvements | 7 – 30 years | 8,884 | 5,869 | ||||||||||||||
Land | Non depreciable | 1,785 | 1,336 | ||||||||||||||
120,914 | 105,115 | ||||||||||||||||
Less: accumulated depreciation and amortization | (60,554 | ) | (47,768 | ) | |||||||||||||
Property and equipment, net | $ | 60,360 | $ | 57,347 | |||||||||||||
Software | |||||||||||||||||
Software may be for internal use or available for sale. Costs related to certain software, which is available for sale, are capitalized in accordance with ASC 985-20, Costs of Software to be Sold, Leased, or Marketed, when the resulting product reaches technological feasibility. The Company generally determines technological feasibility when it has a detailed program design that takes product function, feature and technical requirements to their most detailed, logical form and is ready for coding. The Company does not typically capitalize costs related to software available for sale as technological feasibility generally coincides with general availability of the software. | |||||||||||||||||
Amortization of software costs to be sold or marketed externally, begins when the product is available for licensing to customers and is determined on a product-by-product basis. The annual amortization shall be the greater of the amount computed using (a) the ratio of current gross revenues for a product to the total of current and anticipated future gross revenues for that product or (b) the straight-line method over the remaining estimated economic life of the product, including the period being reported on. Due to competitive pressures, it may be possible that the estimates of anticipated future gross revenue or remaining estimated economic life of the software product will be reduced significantly. As a result, the carrying amount of the software product may be reduced accordingly. Amortization of internal-use software is generally computed using the straight-line method over estimated useful lives of three to ten years. | |||||||||||||||||
Business Combinations | |||||||||||||||||
The Company applies the provisions of ASC 805, Business Combinations, in the accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, it records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of income. | |||||||||||||||||
Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships, covenants not to compete and acquired developed technologies, brand awareness and market position, as well as assumptions about the period of time the brand will continue to be used in our product portfolio, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. | |||||||||||||||||
Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed, as more fully discussed in Note 2, Acquisitions. | |||||||||||||||||
Goodwill and Other Intangibles | |||||||||||||||||
In accordance with ASC 350, Intangibles – Goodwill and Other, the Company assesses goodwill for impairment at least annually. During this assessment management relies on a number of factors, including operating results, business plans and anticipated future cash flows. The Company assesses potential impairments to other intangible assets when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. | |||||||||||||||||
In accordance with ASC 350, 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 reportable segments, Americas, Europe/Middle East/Africa (“EMEA”), and Asia/Pacific, as its reporting units. 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 key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as Company-specific risk factors. Operational management, considering industry and Company-specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and low long-term growth rates. If the calculated fair value is less than the current carrying value, impairment of the reporting unit may exist. If the recoverability test indicates potential impairment, the Company calculates an implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in a manner similar to how goodwill is calculated in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded to write down the carrying value. The calculated fair value substantially exceeded the current carrying value for all reporting units for all periods. | |||||||||||||||||
Changes in the carrying amount of goodwill attributable to each reporting unit with goodwill balances during the years ended December 31, 2014 and 2013, were as follows (in thousands): | |||||||||||||||||
Americas | EMEA | Asia/Pacific | Total | ||||||||||||||
Gross Balance prior to December 31, 2012 | $ | 316,222 | $ | 158,653 | $ | 73,698 | $ | 548,573 | |||||||||
Total impairment prior to December 31, 2012 | (47,432 | ) | — | — | (47,432 | ) | |||||||||||
Balance, December 31, 2012 | 268,790 | 158,653 | 73,698 | 501,141 | |||||||||||||
Goodwill from acquisitions (1) | 173,101 | — | (832 | ) | 172,269 | ||||||||||||
Foreign currency translation adjustments | (625 | ) | 1,505 | (5,073 | ) | (4,193 | ) | ||||||||||
Balance, December 31, 2013 | 441,266 | 160,158 | 67,793 | 669,217 | |||||||||||||
Goodwill from acquisitions (2) | 36,623 | 84,515 | — | 121,138 | |||||||||||||
Foreign currency translation adjustments | (1,407 | ) | (4,370 | ) | (3,415 | ) | (9,192 | ) | |||||||||
Balance, December 31, 2014 | $ | 476,482 | $ | 240,303 | $ | 64,378 | $ | 781,163 | |||||||||
-1 | Addition relates to the goodwill acquired in the acquisitions of OPAY, ORCC, PTESA and Distra as discussed in Note 2, Acquisitions. | ||||||||||||||||
-2 | Goodwill from acquisitions relates to the goodwill recorded for the acquisition of ReD, as well as adjustments to goodwill related to the acquisitions of OPAY, ORCC, and PTESA as discussed in Note 2. The purchase price allocation for ReD is preliminary as of December 31, 2014 and accordingly is subject to future changes during the maximum one-year measurement period. | ||||||||||||||||
Other intangible assets, which include customer relationships, purchased contracts, trademarks and trade names, and covenants not to compete, are amortized using the straight-line method over periods ranging from three years to 20 years. The Company reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. | |||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset group may not be recoverable. An impairment loss is recorded if the sum of the future cash flows expected to result from the use of the asset (undiscounted and without interest charges) is less than the carrying amount of the asset. The amount of the impairment charge is measured based upon the fair value of the asset group. | |||||||||||||||||
Treasury Stock | |||||||||||||||||
The Company accounts for shares of its common stock that are repurchased without intent to retire as treasury stock. Such shares are recorded at cost and reflected separately on the consolidated balance sheets as a reduction of stockholders’ equity. The Company issues shares of treasury stock upon exercise of stock options, issuance of restricted share awards, payment of earned performance shares, and for issuances of common stock pursuant to the Company’s employee stock purchase plan. For purposes of determining the cost of the treasury shares re-issued, the Company uses the average cost method. | |||||||||||||||||
Stock-Based Compensation Plans | |||||||||||||||||
In accordance with ASC 718, Compensation – Stock Compensation, the Company recognizes stock-based compensation costs for only those shares expected to vest, on a straight-line basis over the requisite service period of the award, which is generally the vesting term. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount of expense recognized. Forfeiture estimates are revised, if necessary, in subsequent periods when actual forfeitures differ from those estimates. Share based compensation expense is recorded in operating expenses depending on where the respective individual’s compensation is recorded. The Company generally utilizes the Black-Scholes option-pricing model to determine the fair value of stock options on the date of grant. The assumptions utilized in the Black-Scholes option-pricing model, as well as the description of the plans the stock-based awards are granted under, are described in further detail in Note 11, Stock-Based Compensation Plans. | |||||||||||||||||
Translation of Foreign Currencies | |||||||||||||||||
The Company’s foreign subsidiaries typically use the local currency of the countries in which they are located as their functional currency. Their assets and liabilities are translated into United States dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average exchange rates during the period. Translation gains and losses are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). Transaction gains and losses, including those related to intercompany accounts, that are not considered to be of a long-term investment nature are included in the determination of net income. Transaction gains and losses, including those related to intercompany accounts, that are considered to be of a long-term investment nature are reflected in the consolidated financial statements as a component of accumulated other comprehensive income. | |||||||||||||||||
Since the undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested, the components of accumulated other comprehensive income have not been tax-effected. | |||||||||||||||||
Income Taxes | |||||||||||||||||
The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||||||||||
The Company periodically assesses its tax exposures and establishes, or adjusts, estimated unrecognized tax benefits for probable assessments by taxing authorities, including the Internal Revenue Service (“IRS”), and various foreign and state authorities. Such unrecognized tax benefits represent the estimated provision for income taxes expected to ultimately be paid. | |||||||||||||||||
Recently Issued Accounting Standards | |||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASC 606”). This ASU supersedes the revenue recognition requirements in Accounting Standard Codification 605, Revenue Recognition, and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. The standard permits the use of either the retrospective or cumulative effect transition method. At this time, the Company has not selected a transition method. The Company is currently assessing the impact of the adoption of ASU 2014-09 on its financial position, results of operations, and cash flow. | |||||||||||||||||
In June 2014, FASB issued ASU No. 2014-12, Compensation – Stock Compensation. This ASU is an amendment to the Accounting Standard Codification 718, Compensation – Stock Compensation, to explicitly address the accounting treatment of share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period should be treated as a performance condition. As such, a reporting entity should apply the existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. This ASU is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The Company has assessed the impact of this standard and does not anticipate it having a material impact on its financial position, results of operations or cash flow. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Business Combinations [Abstract] | |||||||||||||||
Acquisitions | 2. Acquisitions | ||||||||||||||
Fiscal 2014 Acquisitions | |||||||||||||||
In 2014, the Company completed one acquisition at an aggregate cost of $205.1 million. | |||||||||||||||
Retail Decisions | |||||||||||||||
On August 12, 2014, the Company completed the acquisition of ReD for $205.1 million in cash. As a leader in fraud prevention solutions, the acquisition of ReD enhances the Company’s Universal Payments strategy and further strengthens the Company’s leadership position in the fast-growing payments risk management space. | |||||||||||||||
To fund this acquisition and related transaction fees, the Company drew an additional $60.5 million on the Revolving Credit Facility and increased the Term portion of the Credit Agreement by an additional $150.0 million. See Note 4, Debt, for terms of the financing arrangement. | |||||||||||||||
The Company incurred approximately $2.7 million in transaction related expenses during the year ended December 31, 2014, including fees to the investment bank, legal and other professional fees, which are included in general and administrative expenses in the accompanying consolidated financial statements. | |||||||||||||||
ReD contributed approximately $17.9 million in revenue and $1.9 million in operating income for the year ended December 31, 2014, which includes severance expense related to the integration activities. | |||||||||||||||
The consideration paid by the Company to complete the acquisition has been allocated preliminarily to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition. The allocation of the purchase price is based upon certain external valuations and other analyses that have not been completed as of the date of this filing, including but not limited to accruals and certain tax matters. Accordingly, the purchase price allocation is considered preliminary and is subject to future adjustments during the maximum one-year measurement period. | |||||||||||||||
In connection with the acquisition, the Company recorded the following amounts based upon its purchase price allocation as of December 31, 2014. The purchase price allocation for ReD is considered preliminary and is subject to completion of valuations and other analyses. | |||||||||||||||
(in thousands, except weighted average useful lives) | Weighted-Average | Retail | |||||||||||||
Useful | Decisions | ||||||||||||||
Lives | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 795 | |||||||||||||
Billed and accrued receivables, net | 10,126 | ||||||||||||||
Deferred income taxes, net | 250 | ||||||||||||||
Other current assets | 9,932 | ||||||||||||||
Total current assets acquired | 21,103 | ||||||||||||||
Noncurrent assets: | |||||||||||||||
Property and equipment | 3,354 | ||||||||||||||
Goodwill | 135,643 | ||||||||||||||
Software | 5-7 years | 33,136 | |||||||||||||
Customer relationships | 18 years | 50,480 | |||||||||||||
Trademarks | 5 years | 3,980 | |||||||||||||
Deferred income taxes | 1,622 | ||||||||||||||
Other noncurrent assets | 416 | ||||||||||||||
Total assets acquired | 249,734 | ||||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | 4,624 | ||||||||||||||
Employee compensation | 7,289 | ||||||||||||||
Other current liabilities | 6,168 | ||||||||||||||
Total current liabilities acquired | 18,081 | ||||||||||||||
Noncurrent liabilities: | |||||||||||||||
Deferred income taxes | 26,404 | ||||||||||||||
Other noncurrent liabilities | 164 | ||||||||||||||
Total liabilities acquired | 44,649 | ||||||||||||||
Net assets acquired | $ | 205,085 | |||||||||||||
The Company made adjustments to the purchase price allocation as certain analysis was completed and additional information became available for property and equipment, software, intangibles, deferred income taxes, other current and noncurrent assets and liabilities. These adjustments and any resulting adjustments to the consolidated statements of income were not material to the Company’s previously reported operating results or financial position. | |||||||||||||||
Factors contributing to the purchase price that resulted in the goodwill (which is not tax deductible) include the acquisition of management, sales, and technology personnel with the skills to market new and existing products of the Company, enhanced product capabilities, complementary products and customers. Pro forma results for ReD are not presented because they are not material. | |||||||||||||||
Fiscal 2013 Acquisitions | |||||||||||||||
In 2013, the Company completed three acquisitions at an aggregate cost of $378.1 million. | |||||||||||||||
Official Payments Holdings, Inc. | |||||||||||||||
On November 5, 2013, the Company completed the tender offer for OPAY and all its subsidiaries. The Company paid cash of $8.35 per share of common stock or approximately $139.8 million using funds on hand and $40 million drawn on the Revolving Credit Facility, which was repaid prior to year-end. As a leading provider of electronic bill payment solutions in the U.S., serving federal, state and local governments, municipal utilities, higher education institutions and charitable giving organizations, OPAY’s team, user base and vertical expertise make it an ideal match for the Company. The acquisition will further extend the Company’s presence in the Electronic Bill Presentment and Payment (“EBPP”) space, expanding its portfolio across key sectors including federal, state and local governments, municipal utilities, higher education institutions and charitable giving organizations. | |||||||||||||||
Each outstanding option to acquire OPAY common stock was canceled and terminated at the effective time of the acquisition and converted into the right to receive cash with respect to the number of shares of OPAY common stock that would have been issuable upon a net exercise of such option, assuming the market value of the OPAY common stock at the time of such exercise was equal to the $8.35 per common stock tender offer. Any outstanding option with a per share exercise price that was greater than or equal to such amount was cancelled and terminated and no payment was made with respect thereto. In addition, each OPAY restricted stock unit award outstanding immediately prior to the effective time of the tender offer was fully vested and cancelled, and each holder of such awards became entitled to receive the $8.35 per common stock tender offer for each share of OPAY common stock into which the vested portion of the awards would otherwise have been converted. | |||||||||||||||
The Company incurred approximately $1.2 million in transaction related expenses during the year ended December 31, 2013, including fees to the investment bank, legal and other professional fees, which are included in general and administrative expenses in the accompanying consolidated statement of income. | |||||||||||||||
OPAY contributed approximately $135.7 million and $23.3 million in revenue for the years ended December 31, 2014 and 2013, respectively. Due to integration activities, the Company is no longer able to separately identify the contribution to operating income generated from the acquisition of OPAY during the year ended December 31, 2014. OPAY contributed less than $0.1 million in operating losses for the year ended December 31, 2013, which includes severance expense related to the integration activities. | |||||||||||||||
The consideration paid by the Company to complete the acquisition of OPAY has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition, including $47.4 million of customer relationships and $29.2 million of goodwill. | |||||||||||||||
The Company made adjustments to finalize the purchase price allocation as additional information became available to deferred income taxes, other current and noncurrent liabilities. These adjustments and any resulting adjustments to the consolidated statements of income were not material to the Company’s previously reported operating results or financial position. | |||||||||||||||
Factors contributing to the purchase price that resulted in the goodwill (which is not tax deductible) include the acquisition of management, sales, and technology personnel with the skills to market new and existing products of the Company, enhanced product capabilities, complementary products and customers. | |||||||||||||||
Online Resources Corporation | |||||||||||||||
On March 11, 2013, the Company completed the tender offer for ORCC and all its subsidiaries. The Company paid cash of $3.85 per share of common stock for approximately $132.9 million and $127.2 million for the Series A-1 Convertible Preferred Stock for a total purchase price of $260.1 million (the “Merger”). The Company has included the financial results of ORCC in the consolidated financial statements from the date of acquisition. As a leading provider of online banking and full service bill pay solutions, the acquisition of ORCC adds EBPP solutions as a strategic part of ACI’s Universal Payments portfolio. It also strengthens the Company’s online banking capabilities with complementary technology, and expands the Company’s leadership in serving community banking and credit union customers. | |||||||||||||||
Each outstanding option to acquire ORCC common stock was canceled and terminated at the effective time of the Merger and converted into the right to receive an equivalent number of options to purchase ACI common stock. Each ORCC restricted stock unit was vested immediately prior to the effective time of the Merger and received $3.85 per share. | |||||||||||||||
The Company used funds from the $300.0 million of senior bank financing arranged through Wells Fargo Securities, LLC to fund the acquisition. See Note 4, Debt, for terms of the financing arrangement. | |||||||||||||||
The Company incurred approximately $5.4 million in transaction related expenses during the twelve months ended December 31, 2013, including fees to the investment bank, legal and other professional fees, which are included in general and administrative expenses in the accompanying statement of income. | |||||||||||||||
ORCC contributed approximately $151.3 million and $120.8 million in revenue for the years ended December 31, 2014 and 2013, respectively. Due to integration activities, the Company is no longer able to separately identify the contribution to operating income generated from the acquisition of ORCC during the year ended December 31, 2014. ORCC contributed approximately $6.4 million in operating income for the year ended December 31, 2013, which includes severance expense related to the integration activities. | |||||||||||||||
The consideration paid by the Company to complete the Merger has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition, including $68.8 million in customer relationships and $122.2 million in goodwill. | |||||||||||||||
The Company made adjustments to finalize the purchase price allocation as additional information became available for certain accruals and deferred income taxes. These adjustments and any resulting adjustments to the consolidated statements of income were not material to the Company’s previously reported operating results or financial position. | |||||||||||||||
Factors contributing to the purchase price that resulted in the goodwill (which is not tax deductible) include the acquisition of management, sales, and technology personnel with the skills to market new and existing products of the Company, enhanced product capabilities, complementary products and customers. | |||||||||||||||
Profesionales en Transacciones Electronicas S.A. | |||||||||||||||
During the first quarter of 2013, the Company acquired 100% of Profesionales en Transacciones Electronicas S.A. – Venezuela (“PTESA-V”), 100% of Profesionales en Transacciones Electronicas S.A. – Ecuador (“PTESA-E”), and the ACI related assets of Profesionales en Transacciones Electronicas S.A. – Colombia (“PTESA-C”), collectively “PTESA”. The common stock of PTESA-E and PTESA-V were acquired for $2.8 million and the assets of PTESA-C were acquired for $11.4 million, for a total aggregate purchase price of $14.2 million paid in cash. The Company has included the financial results of PTESA in our consolidated financial statements from the date of acquisition. PTESA has been a long-term partner of the Company, serving customers in South America in sales, service and support functions. The addition of the PTESA team to the Company reinforces its commitment to serve the Latin American market. | |||||||||||||||
Factors contributing to the purchase price that resulted in the goodwill (approximately $1.5 million of which is not tax deductible) include the acquisition of management, sales, and services personnel with the skills to market and support products of the Company in the Latin America region. Pro forma results are not presented because they are not material. | |||||||||||||||
In connection with the 2013 acquisitions, the Company recorded the following amounts based upon its purchase price allocations as of December 31, 2014 (in thousands, except weighted-average useful lives): | |||||||||||||||
Weighted-Average | Official | Online | PTESA | ||||||||||||
Useful | Payments | Resourses | |||||||||||||
Lives | Holdings, | Corporation | |||||||||||||
Inc. | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 25,871 | $ | 9,930 | $ | 193 | |||||||||
Billed and accrued receivables, net | 2,858 | 19,394 | 327 | ||||||||||||
Deferred income taxes, net | 4,692 | 11,726 | — | ||||||||||||
Other current assets | 27,642 | 17,643 | 95 | ||||||||||||
Total current assets acquired | 61,063 | 58,693 | 615 | ||||||||||||
Noncurrent assets: | |||||||||||||||
Property and equipment | 6,340 | 7,335 | 6 | ||||||||||||
Goodwill | 29,236 | 122,247 | 7,113 | ||||||||||||
Software | 10 years | 26,125 | 62,215 | — | |||||||||||
Customer relationships | 14 - 15 years | 47,400 | 68,750 | 7,732 | |||||||||||
Trademarks | 3 - 5 years | 3,000 | 3,050 | — | |||||||||||
Other noncurrent assets | 19,178 | 459 | 7 | ||||||||||||
Total assets acquired | 192,342 | 322,749 | 15,473 | ||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | 9,414 | 15,394 | 341 | ||||||||||||
Accrued employee compensation | 15,006 | 10,549 | 261 | ||||||||||||
Note payable | — | 7,500 | — | ||||||||||||
Other current liabilities | 27,312 | 7,559 | — | ||||||||||||
Total current liabilities acquired | 51,732 | 41,002 | 602 | ||||||||||||
Noncurrent liabilities: | |||||||||||||||
Deferred income taxes, net | — | 18,290 | 225 | ||||||||||||
Other noncurrent liabilities acquired | 828 | 3,339 | 439 | ||||||||||||
Total liabilities acquired | 52,560 | 62,631 | 1,266 | ||||||||||||
Net assets acquired | $ | 139,782 | $ | 260,118 | $ | 14,207 | |||||||||
Fiscal 2012 Acquisition | |||||||||||||||
In 2012, the Company completed three acquisitions at an aggregate cost of $641.7 million. | |||||||||||||||
Distra Pty Ltd | |||||||||||||||
On September 18, 2012, the Company closed the acquisition of 100% of Distra Pty Ltd (“Distra”). The Company has included the financial results of Distra in our consolidated financial statements from the date of acquisition. The Distra Universal Payments Platform delivers a fault-tolerant, Service-Oriented Architecture (SOA)-based payments platform that helps to significantly reduce the risk and cost of payments transformation without compromising security, performance, scalability and reliability. The integration of the Company’s and Distra’s technologies will enable financial institutions, processors and retailers to enhance the flexibility and performance of their existing payments infrastructure to address market needs, such as mobile, social channels and payment service hubs. In addition, this acquisition will enable the Company’s payment products to integrate more tightly with customers’ enterprise architectures, reducing their total cost of ownership. | |||||||||||||||
The aggregate purchase price of Distra was $49.8 million and was paid with existing cash balances. The consideration paid by the Company to complete the acquisition has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition. The allocation of purchase price is based upon certain external valuations and other analyses that have been completed as of the date of this filing. | |||||||||||||||
Factors contributing to the purchase price that resulted in the goodwill (which is not tax deductible) include the acquisition of management, technical, and services personnel with the skills to support products of the Company in addition to the enhanced focus on product innovation and enabling cross-selling opportunities when coupled with the Company’s suite of payments products. Pro forma results are not presented because they are not material. | |||||||||||||||
North Data Uruguay S.A. | |||||||||||||||
On May 24, 2012, the Company closed the acquisition of North Data Uruguay S.A. North Data had been a long-term partner of the Company, serving customers in South America in sales, service and support functions. The addition of the North Data team to the Company reinforces its commitment to serve the Latin American market. | |||||||||||||||
The aggregate purchase price of North Data was $4.6 million, which included cash acquired of $0.1 million. The consideration paid by the Company to complete the acquisition has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition, including $3.5 million of goodwill and $2.2 million of customer relationships with a weighted-average useful life of 12.6 years. | |||||||||||||||
Factors contributing to the purchase price that resulted in the goodwill (which is not tax deductible) include the acquisition of management, sales, and services personnel with the skills to market and support products of the Company in the Latin America region. Pro forma results are not presented because they are not material. | |||||||||||||||
S1 Corporation | |||||||||||||||
On February 10, 2012, the Company completed the exchange offer for S1 Corporation and all its subsidiaries. The acquisition was effectively closed on February 13, 2012 for approximately $368.7 million in cash and 5.9 million shares of the Company’s stock, including 95,500 shares reissued from Treasury stock, resulting in a total purchase price of $587.3 million (the “Merger”). The combination of the Company and S1 has created a leader in the global enterprise payments industry. The combined company has enhanced scale, breadth, and additional capabilities, as well as a complementary suite of products that will better serve the entire spectrum of financial institutions, processors and retailers. | |||||||||||||||
Under the terms of the transaction, S1 stockholders could elect to receive $10.00 in cash or 0.3148 shares of the Company’s stock for each S1 share they owned, subject to proration, such that in the aggregate 33.8% of S1 shares were exchanged for the Company’s shares and 66.2% were exchanged for cash. No S1 shareholders received fractional shares of the Company’s stock. Instead, the total number of shares that each holder of S1 common stock received was rounded down to the nearest whole number, and the Company paid cash for any resulting fractional share determined by multiplying the fraction by $34.14. | |||||||||||||||
Each outstanding option to acquire S1 common stock was canceled and terminated at the effective time of the Merger and converted into the right to receive the merger consideration with respect to the number of shares of S1 common stock that would have been issuable upon a net exercise of such option, assuming the market value of the S1 common stock at the time of such exercise was equal to the value of the merger consideration as of the close of trading on the day immediately prior to the effective date of the Merger. Any outstanding option with a per share exercise price that was greater than or equal to such amount was cancelled and terminated and no payment was made with respect thereto. In addition, each S1 restricted stock unit award outstanding immediately prior to the effective time of the Merger was fully vested and cancelled, and each holder of such awards became entitled to receive the Merger Consideration for each share of S1 common stock into which the vested portion of the awards would otherwise have been converted. Each S1 restricted stock award was vested immediately prior to the effective time of the Merger and was entitled to receive the Merger Consideration. | |||||||||||||||
Additionally, the Company had previously purchased 1,107,000 shares of S1 stock that were held as available-for-sale securities prior to the acquisition date. The fair value of those shares as of February 13, 2012, has been included in the total purchase price with the previously unrealized gain of approximately $1.6 million being recognized as a gain and included in other income (expense) in the statements of operations for the year ended December 31, 2012. | |||||||||||||||
The Company used $73.7 million of its cash balance for the acquisition in addition to $295.0 million of senior bank financing arranged through Wells Fargo Securities, LLC. See Note 4, Debt, for terms of the financing arrangement. | |||||||||||||||
The consideration paid by the Company to complete the acquisition has been allocated to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition. | |||||||||||||||
The purchase price of S1 Corporation’s common stock as of the date of acquisition was comprised of (in thousands): | |||||||||||||||
Amount | |||||||||||||||
Cash payments to S1 shareholders | $ | 365,918 | |||||||||||||
Issuance of ACI common stock | 204,857 | ||||||||||||||
Reissuance of treasury stock | 2,174 | ||||||||||||||
Cash payments for noncompete agreements | 2,778 | ||||||||||||||
S1 shares previously held as available-for-sale securities | 11,557 | ||||||||||||||
Total Purchase Price | $ | 587,284 | |||||||||||||
The Company incurred approximately $6.1 million in transaction related expenses during the year ended December 31, 2012, including fees to the investment bank, legal and other professional fees, which are included in general and administrative expenses in the accompanying consolidated statement of income. | |||||||||||||||
The Company has included the financial results of S1 in its consolidated financial statements from the date of acquisition. S1 contributed an estimated $161.9 million in revenue during the year ended December 31, 2012. S1 had an estimated $6.9 million in operating losses for the year ended December 31, 2012, which includes non-recurring severance and accelerated share-based compensation expense related to the integration activities. Certain revenue and expenses have been estimated that are no longer separately identifiable due to integration activities. | |||||||||||||||
Factors contributing to the purchase price that resulted in the goodwill (which is not tax deductible) include the acquisition of management, sales, and technology personnel with the skills to market new and existing products of the Company, enhanced global product capabilities, and complementary products and customers. | |||||||||||||||
In connection with the 2012 acquisitions, the Company recorded the following amounts based upon its purchase price allocations during the year ended December 31, 2013 (in thousands, except weighted-average useful lives): | |||||||||||||||
Weighted-Average | S1 | Distra Pty | |||||||||||||
Useful | Corporation | Ltd | |||||||||||||
Lives | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 97,748 | $ | 2 | |||||||||||
Billed and accrued receivables, net | 65,329 | 338 | |||||||||||||
Other current assets | 16,791 | 1,152 | |||||||||||||
Total current assets acquired | 179,868 | 1,492 | |||||||||||||
Noncurrent assets: | |||||||||||||||
Property and equipment | 18,440 | 96 | |||||||||||||
Goodwill | 256,244 | 21,307 | |||||||||||||
Software | 5 - 10 years | 87,517 | 18,802 | ||||||||||||
Customer relationships | 10 - 20 years | 108,690 | 6,200 | ||||||||||||
Trademarks | 3 years | 4,500 | — | ||||||||||||
Covenant not to compete | 3 years | 360 | — | ||||||||||||
Deferred income tax | 40,634 | 12,331 | |||||||||||||
Other noncurrent assets | 11,004 | — | |||||||||||||
Total assets acquired | 707,257 | 60,228 | |||||||||||||
Current liabilities: | |||||||||||||||
Deferred revenue | 34,671 | 320 | |||||||||||||
Accrued employee compensation | 34,689 | 1,205 | |||||||||||||
Other current liabilities | 28,387 | 736 | |||||||||||||
Total current liabilities acquired | 97,747 | 2,261 | |||||||||||||
Noncurrent liabilities: | |||||||||||||||
Deferred income tax | 15,795 | 8,217 | |||||||||||||
Other noncurrent liabilities acquired | 6,431 | — | |||||||||||||
Total liabilities acquired | 119,973 | 10,478 | |||||||||||||
Net assets acquired | $ | 587,284 | $ | 49,750 | |||||||||||
The pro forma financial information in the table below presents the combined results of operations for the Company, OPAY and ORCC as if the acquisitions had occurred January 1, 2012 and S1 as if the acquisition had occurred on January 1, 2011 (in thousands, except per share data). The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transactions been in effect for the periods presented. This pro forma information is not intended to represent or be indicative of actual results had the acquisition occurred as of the beginning of each period, nor is it necessarily indicative of future results and does not reflect potential synergies, integration costs, or other such costs or savings. Certain pro forma adjustments have been made to net income for the years ended December 31, 2013 and 2012 to give effect to estimated adjustments to expenses to remove the amortization on eliminated OPAY, ORCC and S1 historical identifiable intangible assets and added amortization expense for the value of identified intangibles acquired in the acquisitions (primarily acquired software, customer relationships, trade names, and covenants not to compete), adjustments to interest expense to reflect the elimination of preexisting OPAY, ORCC and S1 debt and added estimated interest expense on the Company’s additional Term Credit Facility and Revolving Credit Facility borrowings and to eliminate share-based compensation expense for eliminated positions. Additionally, certain transaction expenses that are a direct result of the acquisitions have been excluded from the years ended December 31, 2013 and 2012. | |||||||||||||||
Pro Forma Results of Operations for | |||||||||||||||
the Year Ended December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Total Revenues | $ | 1,027,422 | $ | 1,017,681 | |||||||||||
Net Income | 78,002 | 64,443 | |||||||||||||
Income per share | |||||||||||||||
Basic | $ | 0.66 | $ | 0.56 | |||||||||||
Diluted | $ | 0.65 | $ | 0.54 |
Software_and_Other_Intangible_
Software and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Software and Other Intangible Assets | 3. Software and Other Intangible Assets | ||||||||||||||||||||||||
At December 31, 2014, software net book value totaled $209.5 million, net of $121.6 million of accumulated amortization. Included in this amount is software marketed for external sale of $85.9 million. The remaining software net book value of $123.6 million is comprised of various software that has been acquired or developed for internal use. | |||||||||||||||||||||||||
At December 31, 2013, software net book value totaled $191.5 million, net of $95.3 million of accumulated amortization. Included in this amount is software marketed for external sale of $94.0 million. The remaining software net book value of $97.5 million is comprised of various software that has been acquired or developed for internal use. | |||||||||||||||||||||||||
Amortization of software marketed for external sale is computed using the greater of the ratio of current revenues to total current and anticipated revenues expected to be derived from the software or the straight-line method over an estimated useful life of generally three to ten years. Software for resale amortization expense recorded during the years ended December 31, 2014, 2013 and 2012 totaled $14.8 million, $13.6 million, and $13.8 million, respectively. These software amortization expense amounts are reflected in cost of license in the consolidated statements of income. | |||||||||||||||||||||||||
Amortization of software for internal use is computed using the straight-line method over an estimated useful life of three to ten years. Software for internal use amortization expense recorded during the years ended December 31, 2014, 2013 and 2012 totaled $26.7 million, $19.1 million, and $11.6 million, respectively. These software amortization expense amounts are reflected in depreciation and amortization in the consolidated statements of income. | |||||||||||||||||||||||||
The carrying amount and accumulated amortization of the Company’s other intangible assets that were subject to amortization at each balance sheet date are as follows (in thousands): | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Balance | Carrying | Amortization | Balance | ||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Customer relationships | $ | 322,216 | $ | (68,616 | ) | $ | 253,600 | $ | 277,356 | $ | (49,410 | ) | $ | 227,946 | |||||||||||
Purchased contracts | 10,768 | (10,768 | ) | — | 10,865 | (10,865 | ) | — | |||||||||||||||||
Trademarks and tradenames | 15,767 | (7,946 | ) | 7,821 | 13,995 | (4,383 | ) | 9,612 | |||||||||||||||||
Covenant not to compete | 433 | (418 | ) | 15 | 438 | (303 | ) | 135 | |||||||||||||||||
$ | 349,184 | $ | (87,748 | ) | $ | 261,436 | $ | 302,654 | $ | (64,961 | ) | $ | 237,693 | ||||||||||||
Other intangible assets amortization expense recorded during the years ended December 31, 2014, 2013 and 2012 totaled $24.7 million, $18.5 million, and $12.1 million, respectively. | |||||||||||||||||||||||||
Based on capitalized intangible assets at December 31, 2014, and assuming no impairment of these intangible assets, estimated amortization expense amounts in future fiscal years are as follows (in thousands): | |||||||||||||||||||||||||
Fiscal Year Ending December 31, | Software | Other | |||||||||||||||||||||||
Amortization | Intangible | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
2015 | $ | 42,379 | $ | 22,863 | |||||||||||||||||||||
2016 | 37,138 | 21,728 | |||||||||||||||||||||||
2017 | 30,993 | 20,225 | |||||||||||||||||||||||
2018 | 25,764 | 19,716 | |||||||||||||||||||||||
2019 | 23,054 | 19,110 | |||||||||||||||||||||||
Thereafter | 50,179 | 157,794 | |||||||||||||||||||||||
Total | $ | 209,507 | $ | 261,436 | |||||||||||||||||||||
Debt
Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt | 4. Debt | ||||||||
As of December 31, 2014, the Company had $44.0 million, $547.9 million and $300.0 million outstanding under its Revolving Credit Facility, Term Credit Facility and Senior Notes, respectively, with up to $206.0 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended. The amount of unused borrowings actually available varies in accordance with the terms of the agreement. | |||||||||
Credit Agreement | |||||||||
The Company entered into the Credit Agreement (the “Credit Agreement”), as amended, with a syndicate of financial institutions, as lenders, and Wells Fargo Bank, National Association (“Wells Fargo”), as Administrative Agent, providing for revolving loans, swingline loans, letters of credit and a term loan on November 10, 2011. The Credit Agreement consists of a five-year $250 million senior secured revolving credit facility (the “Revolving Credit Facility”), which includes a sublimit for the issuance of standby letters of credit and a sublimit for swingline loans, and a five-year $500 million senior secured term loan facility (the “Term Credit Facility” and, together with 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. | |||||||||
On August 20, 2013, upon the consummation of the offering of the 6.375% Senior Notes due in 2020 (the “Senior Notes”), the Fourth Amendment to the Credit Agreement originally entered into on November 10, 2011, became effective. The Fourth Amendment, among other things, extended the maturity date of the loans under the credit facility to August 20, 2018, and increased the amount the Company may request for optional incremental term loans and/or increases in the revolving commitment from $200 million to $300 million. The Fourth Amendment does not impact the interest rate schedule previously applied to the Credit Agreement. | |||||||||
On August 12, 2014, the Company borrowed an additional $150 million under the Term Credit Facility. These additional borrowings were used in connection with the ReD acquisition that was completed on August 12, 2014. | |||||||||
On August 12, 2014, the Fifth Amendment to the Credit Agreement became effective. The Fifth Amendment, among other things, permitted the acquisition of ReD, increased the aggregate amount of permitted intercompany indebtedness between the Company and its subsidiaries that are guarantors under the credit facility and subsidiaries of the Company that are not guarantors under the credit facility from $75 million to $225 million and increased the amount of unsecured indebtedness permitted under the credit facility from $350 million to $500 million, in each case subject to the terms of the Credit Agreement, as amended. The Fifth Amendment also amends the Collateral Agreement dated November 10, 2011 (as amended prior to August 12, 2014) among the Company, OPAY, the other grantors party thereto and Wells Fargo Bank, National Association, as administrative agent, to release the administrative agent’s security interest in, and lien on, certain property of OPAY. | |||||||||
In connection with obtaining the credit agreement and its amendments, the Company incurred debt issue costs of $28.6 million, $12.8 million of which were paid prior to December 31, 2012, $11.3 million were paid in 2013, and $4.5 million were paid in 2014. All debt issuance costs incurred have been paid as of December 31, 2014. | |||||||||
Borrowings under the Credit Facility bear interest at a rate per annum equal to, at the Company’s option, either (a) a base rate determined by reference to the highest of (1) the rate of interest per annum publicly announced by the Administrative Agent as its Prime Rate, (2) the federal funds effective rate plus 1/2 of 1% and (3) a LIBOR based 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 based rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, in each case plus an applicable margin. The applicable margin for borrowings under the Revolving Credit Facility is, based on the calculation of the applicable consolidated total leverage ratio, between 0.50% to 1.50% with respect to base rate borrowings and between 1.50% and 2.50% with respect to LIBOR based borrowings. Interest is due and payable monthly. The interest rate in effect at December 31, 2014 for the Credit Facility was 2.67%. | |||||||||
In addition to paying interest on the outstanding principal under the Credit Facility, the Company is required to pay a commitment fee in respect of the unutilized commitments under the Revolving Credit Facility, payable quarterly in arrears. The Company is also required to pay 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 based borrowings under the Revolving Credit Facility on a per annum basis, payable quarterly in arrears, as well as customary fronting fees for the issuance of letters of credit fees and agency fees. | |||||||||
The Company is permitted to voluntarily reduce the unutilized portion of the commitment amount and repay outstanding loans under the Credit Facility at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR based loans. | |||||||||
Senior Notes | |||||||||
On August 20, 2013, the Company completed a $300 million offering of Senior Notes at an issue price of 100% of the principal amount in a private placement for resale to qualified institutional buyers. The Senior Notes bear an interest rate of 6.375% per annum, payable semi-annually in arrears on August 15 and February 15 of each year, commencing on February 15, 2014. Interest began accruing beginning August 20, 2013. The Senior Notes will mature on August 20, 2020. In connection with the issuance of the Senior Notes the Company incurred debt issue costs of $6.1 million. The Company paid $0.2 million and $5.9 million of these debt issuance costs during the years ended December 31, 2014 and 2013, respectively. | |||||||||
Maturities on long-term debt outstanding at December 31, 2014 are as follows (amounts in thousands): | |||||||||
Fiscal year ending December 31, | |||||||||
2015 | $ | 87,352 | |||||||
2016 | 95,293 | ||||||||
2017 | 95,293 | ||||||||
2018 | 313,997 | ||||||||
2019 | — | ||||||||
Thereafter | 300,000 | ||||||||
Total | $ | 891,935 | |||||||
The Credit Agreement and Senior Notes also contain certain customary mandatory prepayment provisions. If certain events, as specified in the Credit Agreement or Senior Notes agreement, shall occur, the Company may be required to repay all or a portion of the amounts outstanding under the Credit Facility or Senior Notes. | |||||||||
The Credit Facility will mature on August 20, 2018 and the Senior Notes will mature on August 20, 2020. The Revolving Credit Facility and Senior Notes will not amortize and the Term Credit Facility will amortize, with principal payable in consecutive quarterly installments. | |||||||||
The Company’s obligations and the obligations of the guarantors under the Guaranty and cash management arrangements entered into with lenders under the Credit Facility (or affiliates thereof) are secured by first-priority security interests in substantially all assets of the Company and any guarantor, including 100% of the capital stock of ACI Corporation and each domestic subsidiary of the Company, each domestic subsidiary of any guarantor and 65% of the voting capital stock of each foreign subsidiary of the Company that is directly owned by the Company or a guarantor, and in each case, is subject to certain exclusions set forth in the credit documentation governing the Credit Facility. | |||||||||
The Credit Agreement and Senior Notes contain certain customary affirmative covenants and negative covenants that limit or restrict, subject to certain exceptions, the incurrence of liens, indebtedness of subsidiaries, dividends and other restricted payments, mergers, advances, investments, acquisitions, transactions with affiliates, change in nature of business and the sale of the assets. The Company is also required to maintain a consolidated leverage ratio at or below a specified amount and a consolidated fixed charge coverage ratio at or above a specified amount. If an event of default, as specified in the Credit Agreement and Senior Notes agreement, shall occur and be continuing, the Company may be required to repay all amounts outstanding under the Credit Facility and Senior Notes. As of December 31, 2014, and at all times during the period, the Company was in compliance with its financial debt covenants. | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Term credit facility | $ | 547,935 | $ | 455,383 | |||||
Revolving credit facility | 44,000 | — | |||||||
6.375% Senior Notes, due August 2020 | 300,000 | 300,000 | |||||||
Total debt | 891,935 | 755,383 | |||||||
Less current portion of term credit facility | 87,352 | 47,313 | |||||||
Total long-term debt | $ | 804,583 | $ | 708,070 | |||||
Other | |||||||||
During the year ended December 31, 2012, the Company financed a five-year license agreement for certain internally-used software for $14.8 million with annual payments due in April through 2016. Of this amount, $6.3 million and $9.3 million was remaining as of December 31, 2014 and 2013, respectively. The Company recorded $3.1 million and $3.0 million in other current liabilities as of December 31, 2014 and 2013, respectively. The remaining $3.2 million and $6.3 million was recorded in other noncurrent liabilities in the accompanying consolidated balance sheet as of December 31, 2014 and 2013, respectively. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments |
ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: | |
• Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |
• Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. | |
• Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. | |
Available-for-Sale Securities. Equity securities are reported at fair value utilizing Level 1 inputs. The Company’s equity securities of $33.8 million at December 31, 2014 were comprised entirely of Yodlee, Inc. (“Yodlee”) common stock and are included in noncurrent assets in the accompanying consolidated balance sheet. The Company utilized quoted prices from an active exchange market to fair value its equity securities. | |
The Company acquired a cost basis investment in Yodlee with the acquisition of S1 in February of 2012, which was fair valued at $9.8 million as a part of the purchase price allocation. The Company subsequently made an additional investment in Yodlee of approximately $1.0 million, bringing the total investment to $10.8 million as of December 31, 2013. This cost-basis investment was recorded in noncurrent assets in the accompanying consolidated balance sheet. On October 3, 2014 Yodlee common stock began trading on the NASDAQ under the symbol YDLE and the Company transitioned to accounting for the investment as available-for-sale securities. The Company recognized an unrealized gain in accumulated other comprehensive income of approximately $23.0 million during the year ended December 31, 2014 related to price appreciation of the Yodlee shares from the cost basis of $10.8 million. As a result of the recognition of the unrealized gain, the Company released a deferred tax asset and an equal and offsetting valuation allowance on the associated deferred tax asset of approximately $8.7 million during the year ended December 31, 2014. This tax impact was also recorded in accumulated other comprehensive income. | |
The Company assesses its classifications within the fair value hierarchy at each reporting period. There were no transfers between any levels of the fair value hierarchy during the years ended December 31, 2014 and 2013. | |
The fair value of our 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 our Senior Notes was $315 million at December 31, 2014. | |
The fair values of cash equivalents approximate the carrying values. |
Corporate_Restructuring_and_Ot
Corporate Restructuring and Other Organizational Changes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Corporate Restructuring and Other Organizational Changes | 6. Corporate Restructuring and Other Organizational Changes | ||||||||||||
Employee Actions | |||||||||||||
During the year ended December 31, 2014, the Company reduced its headcount by 220 employees as a part of its integration of recent acquisitions. In connection with these actions, approximately $8.7 million of termination costs were recognized in general and administrative expense in the accompanying consolidated statements of income during the year ended December 31, 2014. The charges by segment were as follows for the year ended December 31, 2014: $5.7 million in the Americas segment, $2.0 million in the EMEA segment, and $1.0 million in the Asia/Pacific segment. Approximately $6.2 million of these termination costs were paid during the year ended December 31, 2014. The remaining liability for the year ended December 31, 2014 totaled $2.3 million, of which $1.6 million is expected to be paid over the next 12 months. | |||||||||||||
During the year ended December 31, 2013, the Company reduced its headcount by 147 employees as a part of its integration of its recent acquisitions. In connection with these actions, approximately $8.9 million of termination costs were recognized in general and administrative expense in the accompanying consolidated statements of income during the year ended December 31, 2013. The charges, by segment, were as follows for the year December 31, 2013: $6.3 million in the Americas segment, $2.2 million in the EMEA segment, and $0.4 million in the Asia/Pacific segment. Approximately $7.4 million of these termination costs were paid during the year ended December 31, 2013. The remaining liability was paid during the subsequent year. | |||||||||||||
During the year ended December 31, 2012, the Company reduced its headcount by 272 employees as a part of its integration of its recent acquisitions. In connection with these actions, approximately $9.2 million of termination costs were recognized in general and administrative expense in the accompanying consolidated statements of income during the year ended December 31, 2012. The charges, by segment, were as follows for the year December 31, 2012: $3.7 million in the Americas segment, $4.6 million in the EMEA segment, and $0.9 million in the Asia/Pacific segment. Approximately $8.4 million of these termination costs were paid during the year ended December 31, 2012. The remaining liability was paid during the subsequent year. | |||||||||||||
Lease Terminations | |||||||||||||
During the year ended December 31, 2013, the Company ceased use of all or a portion of its leased facilities in Chantilly, VA, North Brunswick, NJ, Columbus, OH, Duluth, GA, and Bangalore, India, which resulted in additional expense of $1.7 million that was recorded in general and administrative expenses in the accompanying consolidated statements of income for the year ended December 31, 2013. | |||||||||||||
During the year ended December 31, 2012, the Company terminated the lease for its facility in New York, New York. Under the terms of the termination agreement, the Company paid a termination fee of approximately $1.1 million that was recorded in general and administrative expenses in the accompanying consolidated statements of income for the year ended December 31, 2012. | |||||||||||||
During the year ended December 31, 2012, the Company also terminated the lease for its facility in Dublin, Ireland. Under the terms of the termination agreement, the Company agreed to pay a termination fee of approximately $2.8 million, of which $2.3 million was recorded in general and administrative expenses in the accompanying consolidated statements of income for the year ended December 31, 2012. The remaining balance of $0.5 million had been accounted for as an unfavorable lease liability in the S1 purchase price allocation. The termination fee was paid during the year ended December 31, 2012. | |||||||||||||
During the year ended December 31, 2012 the Company ceased use of all or a portion of its leased facilities in Toronto, Canada and Chertsey, England, which resulted in additional expense of $1.3 million that was recorded in general and administrative expenses in the accompanying consolidated statements of income for the year ended December 31, 2012. | |||||||||||||
The components of corporate restructuring and other reorganization activities from the recent acquisitions are included in the following table (in thousands): | |||||||||||||
Severance | Facility | Total | |||||||||||
Closures | |||||||||||||
Balance, December 31, 2012 | $ | 618 | $ | 1,296 | $ | 1,914 | |||||||
Restructuring charges incurred, net | 8,885 | — | 8,885 | ||||||||||
Unfavorable lease liability | — | 1,708 | 1,708 | ||||||||||
Amounts paid during the period | (7,996 | ) | (1,091 | ) | (9,087 | ) | |||||||
Foreign currency translation adjustments | (37 | ) | (42 | ) | (79 | ) | |||||||
Balance, December 31, 2013 | 1,470 | 1,871 | 3,341 | ||||||||||
Restructuring charges (adjustments) incurred, net | 8,671 | (136 | ) | 8,535 | |||||||||
Amounts paid during the period | (7,741 | ) | (1,283 | ) | (9,024 | ) | |||||||
Foreign currency translation adjustments | (59 | ) | — | (59 | ) | ||||||||
Balance, December 31, 2014 | $ | 2,341 | $ | 452 | $ | 2,793 | |||||||
Of the $2.3 million for unpaid severance, $1.6 million is included in employee compensation and the remaining $0.7 million is included in other noncurrent liabilities in the accompanying consolidated balance sheet at December 31, 2014. The $0.5 million for unpaid facilities closures is included in other current liabilities in the accompanying consolidated balance sheet at December 31, 2014. |
Common_Stock_and_Treasury_Stoc
Common Stock and Treasury Stock | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Common Stock and Treasury Stock | 7. Common Stock and Treasury Stock |
As of December 31, 2011, the Company’s Board of Directors had approved a stock repurchase program authorizing the Company, from time to time as market and business conditions warrant, to acquire up to $210 million of its common stock. In February 2012, the Company’s Board of Directors approved an increase of $52.1 million to their current stock repurchase authorization, bringing the total authorization to $262.1 million. | |
On September 13, 2012, the Company’s Board of Directors approved the repurchase of up to 7,500,000 shares of the Company’s common stock, or up to $113.0 million in place of the remaining repurchase amounts previously authorized. In July 2013, the Company’s Board of Directors approved an additional $100 million for the stock repurchase program. In February 2014, the Company’s Board of Directors approved an additional $100 million for the stock repurchase program. | |
The Company repurchased 3,578,427 shares for $70.0 million under the program during the year ended December 31, 2014. Under the program to date, the Company has repurchased 37,108,467 shares for approximately $395.8 million. The maximum remaining authorized for purchase under the stock repurchase program was approximately $138.3 million as of December 31, 2014. | |
During the year ended September 30, 2006, the Company began to issue shares of treasury stock upon exercise of stock options, payment of earned performance shares, issuance of restricted stock awards and for issuances of common stock pursuant to the Company’s employee stock purchase plan. Treasury shares issued during the year ended December 31, 2012 included 2,541,903 and 679,782 shares issued pursuant to stock option exercises and restricted share award grants, respectively. Treasury shares issued during the year ended December 31, 2013 included 2,493,684, 25,989 and 982,728 shares issued pursuant to stock option exercises, Restricted share award (“RSA”) grants, and long-term incentive program performance share awards (“LTIP Performance Shares”) vesting, respectively. Treasury shares issued during the year ended December 31, 2014 included 2,037,467, 106,275 and 635,643 shares issued pursuant to stock option exercises, RSA grants, and LTIP Performance Shares vesting, respectively. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | 8. Earnings Per Share | ||||||||||||
Earnings per share is computed in accordance with ASC 260, Earnings per Share. Basic earnings per share is computed on the basis of weighted average outstanding common shares. Diluted earnings per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and other outstanding dilutive securities. | |||||||||||||
The following table reconciles the average share amounts used to compute both basic and diluted earnings per share (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average shares outstanding: | |||||||||||||
Basic weighted average shares outstanding | 114,798 | 117,885 | 116,089 | ||||||||||
Add: Dilutive effect of stock options, restricted stock awards and other dilutive securities | 1,973 | 2,169 | 3,627 | ||||||||||
Diluted weighted average shares outstanding | 116,771 | 120,054 | 119,716 | ||||||||||
For the years ended December 31, 2014, 2013, and 2012, respectively, 2.9 million, 4.5 million and 5.1 million options to purchase shares, contingently issuable shares, and common stock warrants were excluded from the diluted net income per share computation as their effect would be anti-dilutive. | |||||||||||||
Common stock outstanding as of December 31, 2014 and 2013 was 115,637,804 and 116,564,967, respectively. |
Other_net
Other, net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other, net | 9. Other, net | ||||||||||||
Other, net is comprised of the following items (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Foreign currency transaction losses | $ | (67 | ) | $ | (2,697 | ) | $ | (750 | ) | ||||
Realized gain on available-for-sale securities | — | — | 1,557 | ||||||||||
Other | (173 | ) | (630 | ) | (408 | ) | |||||||
Total | $ | (240 | ) | $ | (3,327 | ) | $ | 399 | |||||
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Information | 10. Segment Information | ||||||||||||
The Company’s chief operating decision maker, together with other senior management personnel, currently focus their review of consolidated financial information and the allocation of resources based on reporting of operating results, including revenues and operating income for the geographic regions of the Americas, EMEA and Asia/Pacific and the Corporate segment. The Company’s products are sold and supported through distribution networks covering these three geographic regions, with each distribution network having its own sales force. The Company supplements its distribution networks with independent reseller and/or distributor arrangements. All administrative costs that are not directly attributable or reasonably allocable to a geographic segment are tracked in the Corporate segment. As such, the Company has concluded that its three geographic regions are its reportable segments. | |||||||||||||
The Company allocates segment support expenses such as global product development, business operations, and product management based upon percentage of revenue per segment. Depreciation and amortization and other facility related costs are allocated as a percentage of the headcount by segment. The Corporate line item consists of the corporate overhead costs that are not allocated to operating segments. Corporate overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity and amortization of acquisition-related intangibles and software as well as other costs that are not considered when management evaluates segment performance. | |||||||||||||
The following is selected segment financial data for the periods indicated (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues: | |||||||||||||
Americas – United States | $ | 614,488 | $ | 450,251 | $ | 277,775 | |||||||
Americas – Other | 87,279 | 91,639 | 74,422 | ||||||||||
EMEA | 230,879 | 228,679 | 218,015 | ||||||||||
Asia/Pacific | 83,503 | 94,359 | 96,367 | ||||||||||
$ | 1,016,149 | $ | 864,928 | $ | 666,579 | ||||||||
Depreciation and amortization expense: | |||||||||||||
Americas | $ | 20,548 | $ | 17,030 | $ | 10,917 | |||||||
EMEA | 4,126 | 6,310 | 5,175 | ||||||||||
Asia/Pacific | 1,809 | 2,574 | 3,075 | ||||||||||
Corporate | 60,200 | 44,053 | 31,614 | ||||||||||
$ | 86,683 | $ | 69,967 | $ | 50,781 | ||||||||
Stock-based compensation expense: | |||||||||||||
Americas | $ | 2,910 | $ | 2,392 | $ | 256 | |||||||
EMEA | 419 | 759 | 439 | ||||||||||
Asia/Pacific | 249 | 293 | 314 | ||||||||||
Corporate | 7,467 | 10,128 | 14,177 | ||||||||||
$ | 11,045 | $ | 13,572 | $ | 15,186 | ||||||||
Income (loss) before taxes: | |||||||||||||
Americas | $ | 143,379 | $ | 145,496 | $ | 103,165 | |||||||
EMEA | 116,120 | 87,522 | 78,848 | ||||||||||
Asia/Pacific | 38,853 | 33,923 | 32,673 | ||||||||||
Corporate | (199,583 | ) | (173,782 | ) | (149,418 | ) | |||||||
$ | 98,769 | $ | 93,159 | $ | 65,268 | ||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Long lived assets: | |||||||||||||
Americas – United States | $ | 929,459 | $ | 832,169 | |||||||||
Americas – Other | 15,337 | 18,708 | |||||||||||
EMEA | 360,033 | 262,906 | |||||||||||
Asia/Pacific | 77,416 | 82,854 | |||||||||||
$ | 1,382,245 | $ | 1,196,637 | ||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Total assets: | |||||||||||||
Americas – United States | $ | 1,210,674 | $ | 1,129,064 | |||||||||
Americas – Other | 32,594 | 39,995 | |||||||||||
EMEA | 487,629 | 380,320 | |||||||||||
Asia/Pacific | 119,803 | 132,472 | |||||||||||
$ | 1,850,700 | $ | 1,681,851 | ||||||||||
Additionally, the Company offers seven primary product categories that are sold in each of the geographic regions listed above. Following are revenues, by product and services (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Retail payments processing | $ | 406,023 | $ | 410,200 | $ | 372,942 | |||||||
Billers | 235,039 | 101,981 | — | ||||||||||
Online banking and community financial services | 227,659 | 223,902 | 169,652 | ||||||||||
Tools and infrastructure | 40,427 | 38,241 | 37,145 | ||||||||||
Wholesale banking payments | 37,879 | 35,396 | 39,717 | ||||||||||
Payment fraud management | 36,235 | 37,136 | 25,160 | ||||||||||
Card and merchant management | 32,887 | 18,072 | 21,963 | ||||||||||
Total | $ | 1,016,149 | $ | 864,928 | $ | 666,579 | |||||||
During the years ended December 31, 2014, 2013 and 2012, approximately 21%, 28%, and 32%, respectively, of the Company’s total revenues were derived from licensing the BASE24 product line, which does not include the BASE24-eps product, and providing related services and maintenance. | |||||||||||||
No country outside of the United States accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2014, 2013 and 2012. No single customer accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2014, 2013 and 2012. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock-Based Compensation Plans | 11. Stock-Based Compensation Plans | ||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
Under the Company’s 1999 Employee Stock Purchase Plan (the “ESPP”), a total of 4,500,000 shares of the Company’s common stock have been reserved for issuance to eligible employees. Participating employees are permitted to designate up to the lesser of $25,000, or 10% of their annual base compensation, for the purchase of common stock under the ESPP. Purchases under the ESPP are made one calendar month after the end of each fiscal quarter. The price for shares of common stock purchased under the ESPP is 85% of the stock’s fair market value on the last business day of the three-month participation period. Shares issued under the ESPP during the years ended December 31, 2014, 2013 and 2012, totaled 154,223, 128,568 and 122,394, respectively. | |||||||||||||||||
Additionally, the discount offered pursuant to the Company’s ESPP discussed above is 15%, which exceeds the 5% non-compensatory guideline in ASC 718 and exceeds the Company’s estimated cost of raising capital. Consequently, the entire 15% discount to employees is deemed to be compensatory for purposes of calculating expense using a fair value method. Compensation costs related to the ESPP for the years ended December 31, 2014, 2013, and 2012 was approximately $0.5 million, $0.3 million, and $0.2 million, respectively. | |||||||||||||||||
On July 24, 2007, the Company’s stockholders approved a proposal to amend the ESPP to extend the term of the ESPP by ten years to April 30, 2018. The term of the amended ESPP commenced May 1, 2008 and continues until April 30, 2018 subject to earlier termination by the Company’s Board of Directors. | |||||||||||||||||
Stock Incentive Plans – Active Plans | |||||||||||||||||
Subsequent to year-end, on January 26, 2015 the Company’s Board of Directors granted stock and performance awards to its employees. The Company has historically made its annual grant of stock and performance awards to its employees in December, however, no grants were made in December of 2014. | |||||||||||||||||
The Company has a 2005 Equity and Performance Incentive Plan, as amended (the “2005 Incentive Plan”), under which shares of the Company’s common stock have been reserved for issuance to eligible employees or non-employee directors of the Company. The 2005 Incentive Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, performance awards and other awards. The maximum number of shares of the Company’s common stock that may be issued or transferred in connection with awards granted under the 2005 Incentive Plan is the sum of (i) 9,000,000 shares and (ii) any shares represented by outstanding options that had been granted under designated terminated stock option plans that are subsequently forfeited, expire or are canceled without delivery of the Company’s common stock. | |||||||||||||||||
On July 24, 2007, the stockholders of the Company approved the First Amendment to the 2005 Incentive Plan which increased the number of shares authorized for issuance under the plan from 9,000,000 to 15,000,000 and contained certain other amendments, including an amendment to provide that the exercise price for any options granted under the 2005 Incentive Plan, as amended, may not be less than the market value per share of common stock on the date of grant. On June 14, 2012, the stockholders of the Company approved the Second Amendment to the 2005 Incentive Plan which increased the number of shares authorized for issuance under the plan from 15,000,000 to 23,250,000. | |||||||||||||||||
Stock options granted pursuant to the 2005 Incentive Plan are granted at an exercise price not less than the market value per share of the Company’s common stock on the date of the grant. Prior to the adoption of the First Amendment to the 2005 Incentive Plan, stock options granted under the 2005 Incentive Plan were granted with an exercise price not less than the market value per share of common stock on the date immediately preceding the date of grant. Under the 2005 Incentive Plan, the term of the outstanding options may not exceed ten years. Vesting of options is determined by the Compensation Committee of the Board of Directors, the administrator of the 2005 Incentive Plan, and can vary based upon the individual award agreements. | |||||||||||||||||
Performance awards granted pursuant to the 2005 Incentive Plan become payable upon the achievement of specified management objectives. Each performance award specifies: (i) the number of performance shares or units granted, (ii) the period of time established to achieve the management objectives, which may not be less than one year from the grant date, (iii) the management objectives and a minimum acceptable level of achievement as well as a formula for determining the number of performance shares or units earned if performance is at or above the minimum level but short of full achievement of the management objectives, and (iv) any other terms deemed appropriate. | |||||||||||||||||
Restricted stock awards granted pursuant to the 2005 Incentive Plan have requisite service periods of three and four years and vest in increments of 33% and 25%, respectively, on the anniversary of the grant date. Under each arrangement, stock is issued without direct cost to the employee. | |||||||||||||||||
In relation to the acquisition of S1 Corporation discussed in Note 2, the Company amended the S1 Corporation 2003 Stock Incentive Plan, as previously amended and restated (the “S1 2003 Incentive Plan”). RSAs were granted to S1 employees by S1 Corporation prior to the acquisition by the Company in accordance with the terms of the Transaction Agreement (“Transaction RSAs”) under the S1 2003 Incentive Plan. These are the only equity awards currently outstanding under the S1 2003 Incentive Plan and no further grants will be made. | |||||||||||||||||
Stock Incentive Plans – Terminated Plans with Options Outstanding | |||||||||||||||||
Upon adoption of the 2005 Incentive Plan in March 2005, the Board terminated the following stock option plans of the Company: (i) the 2002 Non-Employee Director Stock Option Plan, as amended, (ii) the MDL Amended and Restated Employee Share Option Plan, as amended (iii) the 2000 Non-Employee Director Stock Option Plan, as amended (iv) the 1997 Management Stock Option Plan, as amended (v) the 1996 Stock Option Plan, as amended; and (vi) the 1994 Stock Option Plan, as amended. Termination of these stock option plans did not affect any options outstanding under these plans immediately prior to termination thereof. | |||||||||||||||||
The Company had a 2002 Non-Employee Director Stock Option Plan that was terminated in March 2005 whereby 750,000 shares of the Company’s common stock had been reserved for issuance to eligible non-employee directors of the Company. The term of the outstanding options is ten years. All outstanding options under this plan are fully vested. | |||||||||||||||||
The Company had a 1999 Stock Option Plan, as amended, that expired in February 2009 whereby 12,000,000 shares of the Company’s common stock had been reserved for issuance to eligible employees of the Company and its subsidiaries. The term of the outstanding options is 10 years. The options generally vest annually over a period of three or four years. All outstanding options under this plan are fully vested. | |||||||||||||||||
A summary of stock options issued under the various Stock Incentive Plans previously described and changes is as follows: | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value of | |||||||||||||||
Price ($) | Contractual | In-the-Money | |||||||||||||||
Term | Options ($) | ||||||||||||||||
(Years) | |||||||||||||||||
Outstanding, December 31, 2011 | 10,470,168 | $ | 7.76 | ||||||||||||||
Granted | 1,306,101 | 14.14 | |||||||||||||||
Exercised | (2,541,903 | ) | 6.58 | ||||||||||||||
Forfeited | (316,620 | ) | 7.4 | ||||||||||||||
Expired | (12,000 | ) | 3.4 | ||||||||||||||
Outstanding, December 31, 2012 | 8,905,746 | 9.05 | |||||||||||||||
Granted | 1,208,019 | 19.3 | |||||||||||||||
Exercised | (2,478,183 | ) | 7.81 | ||||||||||||||
Forfeited | (225,474 | ) | 12.79 | ||||||||||||||
Expired | (1,287 | ) | 9.65 | ||||||||||||||
Outstanding, December 31, 2013 | 7,408,821 | 11.02 | |||||||||||||||
Granted | 27,132 | 20.13 | |||||||||||||||
Exercised | (2,036,558 | ) | 8.08 | ||||||||||||||
Forfeited | (116,702 | ) | 17.8 | ||||||||||||||
Outstanding, December 31, 2014 | 5,282,693 | $ | 12.06 | 5.72 | $ | 43,191,137 | |||||||||||
Exercisable, December 31, 2014 | 4,325,851 | $ | 10.66 | 5.08 | $ | 41,247,183 | |||||||||||
At December 31, 2014, we expect that 93.2% of options granted will vest over the vesting period. | |||||||||||||||||
The weighted-average grant date fair value of stock options granted during the years ended December 31, 2014, 2013, and 2012 was $9.02, $8.72, and $6.85, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2014, 2013, and 2012 was $22.8 million, $25.5 million, and $17.3 million, respectively. | |||||||||||||||||
The fair value of options granted in the respective fiscal years was estimated on the date of grant using the Black-Scholes option-pricing model, acceptable under ASC 718, with the following weighted-average assumptions: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected life (years) | 5.9 | 6.2 | 6.2 | ||||||||||||||
Risk-free interest rate | 1.8 | % | 1.6 | % | 0.8 | % | |||||||||||
Expected volatility | 45.2 | % | 46 | % | 51.4 | % | |||||||||||
Expected dividend yield | — | — | — | ||||||||||||||
Expected volatilities are based on the Company’s historical common stock volatility derived from historical stock price data for historic periods commensurate with the options’ expected life. The expected life of options granted represents the period of time that options granted are expected to be outstanding, based primarily on historical employee option exercise behavior. The risk-free interest rate is based on the implied yield currently available on United States Treasury zero coupon issues with a term equal to the expected life at the date of grant of the options. The expected dividend yield is zero as the Company has historically paid no dividends and does not anticipate dividends to be paid in the future. | |||||||||||||||||
Stock Incentive Plan – ORCC Corporation Stock Incentive Plan, as amended and restated | |||||||||||||||||
In relation to the acquisition of ORCC discussed in Note 2, the Company amended the ORCC Stock Incentive Plan, as previously amended and restated (the “ORCC Incentive Plan”). Stock options were granted to ORCC employees by ORCC prior to acquisition by the Company under the ORCC Incentive Plan. Outstanding ORCC options were converted into ACI options in accordance with the terms of the Transaction Agreement. These are the only equity awards currently outstanding under the ORCC Incentive Plan and no further grants will be made. | |||||||||||||||||
A summary of transaction stock options issued pursuant to the Company’s stock incentive plans is as follows: | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic Value of | ||||||||||||||
Exercise | Remaining | In-the-Money | |||||||||||||||
Price | Contractual | Options | |||||||||||||||
Term (Years) | |||||||||||||||||
Outstanding as of December 31, 2012 | — | $ | — | ||||||||||||||
Transaction stock options converted upon acquisition of ORCC | 112,404 | 30.64 | |||||||||||||||
Exercised | (15,501 | ) | 13.92 | ||||||||||||||
Cancelled | (34,458 | ) | 30.21 | ||||||||||||||
Outstanding as of December 31, 2013 | 62,445 | 35.03 | |||||||||||||||
Exercised | (909 | ) | 13.92 | ||||||||||||||
Cancelled | (15,024 | ) | 31.03 | ||||||||||||||
Outstanding as of December 31, 2014 | 46,512 | $ | 36.73 | 1.61 | $ | 43,444 | |||||||||||
Exercisable as of December 31, 2014 | 46,512 | $ | 36.73 | 1.61 | $ | 43,444 | |||||||||||
Long-term Incentive Program Performance Share Awards | |||||||||||||||||
During the years ended December 31, 2014, 2013, and 2012, pursuant to the Company’s 2005 Incentive Plan, the Company granted LTIP Performance Shares. These LTIP Performance Shares are earned, if at all, based upon the achievement, over a specified period that must not be less than one year and is typically a three-year performance period, of performance goals related to (i) the compound annual growth over the performance period in the sales for the Company as determined by the Company, and (ii) the cumulative operating income over the performance period as determined by the Company. In no event will any of the LTIP Performance Shares become earned if the Company’s sales growth or cumulative operating income is below a predetermined minimum threshold level at the conclusion of the performance period. Assuming achievement of the predetermined sales growth and cumulative operating income threshold levels, up to 200% of the LTIP Performance Shares may be earned upon achievement of performance goals equal to or exceeding the maximum target levels for the performance goals over the performance period. Management must evaluate, on a quarterly basis, the probability that the threshold performance goals will be achieved, if at all, and the anticipated level of attainment in order to determine the amount of compensation costs to record in the consolidated financial statements. | |||||||||||||||||
During the fourth quarter of the year ended December 31, 2013, the Company revised the expected attainment for the awards granted in fiscal 2010 from 175% to 130% due to changes in actual sales and operating income. The awards granted in fiscal 2010 vested during the first quarter of the year ended December 31, 2014 at a final attainment rate of 136%. During the fourth quarter of the year ended December 31, 2014, the Company revised the expected attainment for the awards granted in fiscal years 2012 and 2013 from 100% to 0% and 75%, respectively, due to changes in forecasted sales and operating income. The expected attainment rate for the 2011 grant remains 100%. | |||||||||||||||||
At December 8, 2014, the LTIPs granted in 2011 were earned by the employees and the shares are expected to be issued in the first quarter of 2015. If a grantee voluntarily leaves the Company before issuance, they will be required to forfeit their LTIP awards. As such, the LTIP awards granted in fiscal 2011 are not vested until they are issued to the individuals in 2015. | |||||||||||||||||
A summary of the nonvested LTIP Performance Shares is as follows: | |||||||||||||||||
Nonvested LTIP Performance Shares | Number of | Weighted- | |||||||||||||||
Shares at | Average | ||||||||||||||||
Expected | Grant | ||||||||||||||||
Attainment | Date Fair | ||||||||||||||||
Value | |||||||||||||||||
Nonvested at December 31, 2011 | 2,794,713 | $ | 7.78 | ||||||||||||||
Granted | 820,785 | 14.22 | |||||||||||||||
Forfeited | (311,046 | ) | 7.71 | ||||||||||||||
Nonvested at December 31, 2012 | 3,304,452 | 9.38 | |||||||||||||||
Granted | 798,306 | 20.3 | |||||||||||||||
Vested | (982,728 | ) | 5.61 | ||||||||||||||
Forfeited | (188,511 | ) | 12.33 | ||||||||||||||
Change in expected attainment for 2010 grants | (212,943 | ) | 8.88 | ||||||||||||||
Nonvested at December 31, 2013 | 2,718,576 | 13.78 | |||||||||||||||
Granted | 19,065 | 20.13 | |||||||||||||||
Vested | (635,643 | ) | 8.88 | ||||||||||||||
Forfeited | (111,599 | ) | 16.43 | ||||||||||||||
Change in expected attainment for 2012 and 2013 grants | (844,483 | ) | 15.86 | ||||||||||||||
Nonvested at December 31, 2014 | 1,145,916 | $ | 14.84 | ||||||||||||||
During the years ended December 31, 2014 and 2013 the Company had 635,643 and 982,728 LTIP shares vest, respectively. The Company withheld 228,279 and 338,262 of those shares to pay the employees’ portion of the minimum payroll withholding taxes for the years ended December 31, 2014 and 2013, respectively. No shares vested during the year ended December 31, 2012. | |||||||||||||||||
Restricted Share Awards | |||||||||||||||||
During the years ended December 31, 2014, 2013, and 2012, pursuant to the Company’s 2005 Incentive Plan, the Company granted restricted share awards (“RSAs”). The awards have requisite service periods of three years and vest in increments of 33% on the anniversary of the grant dates. Under each arrangement, stock is issued without direct cost to the employee. The Company estimates the fair value of the RSAs based upon the market price of the Company’s stock at the date of grant. The RSA grants provide for the payment of dividends on the Company’s common stock, if any, to the participant during the requisite service period (vesting period) and the participant has voting rights for each share of common stock. The Company recognizes compensation expense for RSAs on a straight-line basis over the requisite service period. | |||||||||||||||||
A summary of nonvested RSAs are as follows: | |||||||||||||||||
Nonvested Restricted Share Awards | Restricted | Grant Date | |||||||||||||||
Share Awards | Fair Value | ||||||||||||||||
Nonvested at December 31, 2011 | 300,069 | $ | 6.43 | ||||||||||||||
Granted | 169,167 | 14.94 | |||||||||||||||
Vested | (237,897 | ) | 6.24 | ||||||||||||||
Forfeited | (23,625 | ) | 5.59 | ||||||||||||||
Nonvested at December 31, 2012 | 207,714 | 13.67 | |||||||||||||||
Granted | 25,989 | 16.1 | |||||||||||||||
Vested | (88,638 | ) | 12.35 | ||||||||||||||
Nonvested at December 31, 2013 | 145,065 | 14.91 | |||||||||||||||
Granted | 106,275 | 18.57 | |||||||||||||||
Vested | (66,670 | ) | 14.59 | ||||||||||||||
Forfeited | (1,461 | ) | 20.51 | ||||||||||||||
Nonvested at December 31, 2014 | 183,209 | $ | 17.11 | ||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company had 66,670, 88,638, and 237,897 RSA shares vested, respectively. The Company withheld 26,461, 31,746, and 71,439, of those respective shares to pay the employees’ portion of the minimum payroll withholding taxes. | |||||||||||||||||
Under the terms of the Transaction Agreement with S1, upon the acquisition, the S1 Transaction RSAs were converted to RSAs of the Company’s stock. These awards have requisite service periods of four years and vest in increments of 25% on the anniversary of the original grant date of November 9, 2011. If an employee was terminated without cause within 12 months of the acquisition date, the RSAs 100% vested. Stock is issued without direct cost to the employee. The RSA grants provide for the payment of dividends on the Company’s common stock, if any, to the participant during the requisite service period (vesting period) and the participant has voting rights for each share of common stock. The conversion of the Transaction RSAs was treated as a modification and as such, they were valued immediately prior to and after modification. The Company recognizes compensation expense for RSAs on a straight-line basis over the requisite service period. The incremental fair value as measure upon modification will be recognized on a straight-line basis from modification date through the end of the requisite service period. | |||||||||||||||||
A summary of nonvested Transaction RSAs issued under the S1 2003 Stock Incentive Plan as of December 31, 2014 and changes during the period are as follows: | |||||||||||||||||
Nonvested Transaction Restricted Share Awards | Number of | Weighted-Average Grant | |||||||||||||||
Restricted | Date Fair Value | ||||||||||||||||
Share Awards | |||||||||||||||||
Nonvested as of December 31, 2011 | — | $ | — | ||||||||||||||
Transaction RSAs converted upon acquisition of S1 | 510,615 | 11.8 | |||||||||||||||
Vested | (302,055 | ) | 11.8 | ||||||||||||||
Forfeited | (57,828 | ) | 11.8 | ||||||||||||||
Nonvested as of December 31, 2012 | 150,732 | 11.8 | |||||||||||||||
Vested | (35,598 | ) | 11.8 | ||||||||||||||
Forfeited | (57,582 | ) | 11.8 | ||||||||||||||
Nonvested as of December 31, 2013 | 57,552 | 11.8 | |||||||||||||||
Vested | (19,822 | ) | 11.8 | ||||||||||||||
Forfeited | (20,165 | ) | 11.8 | ||||||||||||||
Nonvested as of December 31, 2014 | 17,565 | $ | 11.8 | ||||||||||||||
During the years ended December 31, 2014, 2013, and 2012, 19,822, 35,598 and 302,055 shares of the Transaction RSAs vested, respectively. The Company withheld 5,980, 11,307 and 114,501 of those respective shares to pay the employees’ portion of the minimum payroll withholding taxes. | |||||||||||||||||
As of December 31, 2014, there were unrecognized compensation costs of $6.7 million related to nonvested stock options, $1.9 million related to the nonvested RSAs, and $6.7 million related to the LTIP performance shares, which the Company expects to recognize over weighted-average periods of 1.7 years, 0.9 years and 2.0 years, respectively. | |||||||||||||||||
The Company recorded stock-based compensation expenses recognized under ASC 718 during the years ended December 31, 2014, 2013, and 2012 related to stock options, LTIP Performance Shares, RSAs, and the ESPP of $11.0 million, $13.6 million, and $15.2 million, respectively, with corresponding tax benefits of $4.2 million, $5.2 million, and $5.5 million, respectively. Tax benefits in excess of the option’s grant date fair value are classified as financing cash flows. Estimated forfeiture rates, stratified by employee classification, have been included as part of the Company’s calculations of compensation costs. The Company recognizes compensation costs for stock option awards which vest with the passage of time with only service conditions on a straight-line basis over the requisite service period. | |||||||||||||||||
Cash received from option exercises for the year ended December 31, 2014, 2013, and 2012 was $16.5 million, $19.6 million, $16.7 million, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $8.6 million, $9.7 million, and $6.3 million, for the year ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||
12. Employee Benefit Plans | |||||||||||||||||
ACI 401(k) Plan | |||||||||||||||||
The ACI 401(k) Plan is a defined contribution plan covering all domestic employees of the Company. Participants may contribute up to 75% of their annual eligible compensation up to a maximum of $17,500 (for employees who are under the age of 50 on December 31, 2014) or a maximum of $23,000 (for employees aged 50 or older on December 31, 2014). After one year of service, the Company matches participant contributions 100% on every dollar deferred to a maximum of 4% of eligible compensation contributed to the plan, not to exceed $4,000 per employee annually. Company contributions charged to expense during the years ended December 31, 2014, 2013 and 2012 was $6.0 million, $5.4 million and $3.5 million, respectively. | |||||||||||||||||
ACI Worldwide EMEA Group Personal Pension Scheme | |||||||||||||||||
The ACI Worldwide EMEA Group Personal Pension Scheme is a defined contribution plan covering substantially all ACI Worldwide (EMEA) Limited (“ACI-EMEA”) employees. For those ACI-EMEA employees who elect to participate in the plan, the Company contributes a minimum of 8.5% of eligible compensation to the plan for employees employed at December 1, 2000 (up to a maximum of 15.5% for employees aged over 55 years on December 1, 2000) or from 6% to 10% of eligible compensation for employees employed subsequent to December 1, 2000. ACI-EMEA contributions charged to expense during the year ended December 31, 2014, was $1.5 million. ACI-EMEA contributions charged to expense were $1.3 million for each of the years ended 2013 and 2012. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 12. Employee Benefit Plans |
ACI 401(k) Plan | |
The ACI 401(k) Plan is a defined contribution plan covering all domestic employees of the Company. Participants may contribute up to 75% of their annual eligible compensation up to a maximum of $17,500 (for employees who are under the age of 50 on December 31, 2014) or a maximum of $23,000 (for employees aged 50 or older on December 31, 2014). After one year of service, the Company matches participant contributions 100% on every dollar deferred to a maximum of 4% of eligible compensation contributed to the plan, not to exceed $4,000 per employee annually. Company contributions charged to expense during the years ended December 31, 2014, 2013 and 2012 was $6.0 million, $5.4 million and $3.5 million, respectively. | |
ACI Worldwide EMEA Group Personal Pension Scheme | |
The ACI Worldwide EMEA Group Personal Pension Scheme is a defined contribution plan covering substantially all ACI Worldwide (EMEA) Limited (“ACI-EMEA”) employees. For those ACI-EMEA employees who elect to participate in the plan, the Company contributes a minimum of 8.5% of eligible compensation to the plan for employees employed at December 1, 2000 (up to a maximum of 15.5% for employees aged over 55 years on December 1, 2000) or from 6% to 10% of eligible compensation for employees employed subsequent to December 1, 2000. ACI-EMEA contributions charged to expense during the year ended December 31, 2014, was $1.5 million. ACI-EMEA contributions charged to expense were $1.3 million for each of the years ended 2013 and 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 13. Income Taxes | ||||||||||||
For financial reporting purposes, income before income taxes includes the following components (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 47,963 | $ | 47,640 | $ | (4,192 | ) | ||||||
Foreign | 50,806 | 45,519 | 69,460 | ||||||||||
Total | $ | 98,769 | $ | 93,159 | $ | 65,268 | |||||||
The expense (benefit) for income taxes consists of the following (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal | |||||||||||||
Current | $ | 7,895 | $ | 7,509 | $ | 1,236 | |||||||
Deferred | 7,021 | 9,491 | 56 | ||||||||||
Total | 14,916 | 17,000 | 1,292 | ||||||||||
State | |||||||||||||
Current | 1,542 | 2,492 | 1,150 | ||||||||||
Deferred | (2,397 | ) | (1,687 | ) | (142 | ) | |||||||
Total | (855 | ) | 805 | 1,008 | |||||||||
Foreign | |||||||||||||
Current | 13,335 | 9,717 | 9,258 | ||||||||||
Deferred | 3,813 | 1,769 | 4,864 | ||||||||||
Total | 17,148 | 11,486 | 14,122 | ||||||||||
Total | $ | 31,209 | $ | 29,291 | $ | 16,422 | |||||||
Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of income are summarized as follows (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax expense at federal rate of 35% | $ | 34,569 | $ | 32,606 | $ | 22,844 | |||||||
State income taxes, net of federal benefit | (544 | ) | 675 | 655 | |||||||||
Change in valuation allowance | 3,521 | (1,615 | ) | (2,680 | ) | ||||||||
Foreign tax rate differential | (5,508 | ) | (4,650 | ) | (8,940 | ) | |||||||
Unrecognized tax benefit increase (decrease) | 65 | 488 | (1,665 | ) | |||||||||
Tax effect of foreign operations | (104 | ) | 5,906 | 5,311 | |||||||||
Acquisition Costs | 289 | 896 | 2,659 | ||||||||||
Tax benefit of research & development | (3,446 | ) | (4,001 | ) | (1,749 | ) | |||||||
Other | 2,367 | (1,014 | ) | (13 | ) | ||||||||
Income tax provision | $ | 31,209 | $ | 29,291 | $ | 16,422 | |||||||
The countries having the greatest impact on the tax rate adjustment line shown in the above table as “Foreign tax rate differential” for the year ended December 31, 2014 are Ireland, South Africa and United Kingdom. The countries having the greatest impact on the tax rate adjustment line shown in the above table as “Foreign tax rate differential” for the year ended December 31, 2013, are Canada, Singapore, South Africa, and United Kingdom. The countries having the greatest impact on the tax rate adjustment line shown in the above table as “Foreign tax rate differential” for the years ended December 31, 2012 are Canada, Ireland and United Kingdom. | |||||||||||||
The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 150,004 | $ | 148,499 | |||||||||
Tax credits | 43,804 | 32,231 | |||||||||||
Compensation | 24,486 | 24,902 | |||||||||||
Deferred revenue | 13,486 | 10,564 | |||||||||||
Tax basis in investments | 5,601 | 15,536 | |||||||||||
Other | 9,712 | 10,153 | |||||||||||
Gross deferred income tax assets | 247,093 | 241,885 | |||||||||||
Less: valuation allowance | (36,174 | ) | (39,749 | ) | |||||||||
Net deferred income tax assets | $ | 210,919 | $ | 202,136 | |||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | $ | (129,825 | ) | $ | (117,444 | ) | |||||||
Total deferred income tax liabilities | (129,825 | ) | (117,444 | ) | |||||||||
Net deferred income taxes | $ | 81,094 | $ | 84,692 | |||||||||
Deferred income taxes / liabilities included in the balance sheet are: | |||||||||||||
Deferred income tax asset – current | $ | 44,349 | $ | 47,593 | |||||||||
Deferred income tax asset – noncurrent | 50,187 | 48,852 | |||||||||||
Deferred income tax liability – current | (225 | ) | (753 | ) | |||||||||
Deferred income tax liability – noncurrent | (13,217 | ) | (11,000 | ) | |||||||||
Net deferred income taxes | $ | 81,094 | $ | 84,692 | |||||||||
Prior year amounts reflected in the above table have been reclassified for comparability purposes as follows, deferred tax assets of $5.0 million related to various types of tax credits previously reflected in the other line item and $27.2 million reflected as foreign tax credits as of December 31, 2013 are now included in the tax credits line item. | |||||||||||||
In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers projected future taxable income, carryback opportunities and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, the Company believes it is more likely than not that it will realize the benefits of these deductible differences, net of the valuation allowances recorded. During the year ended December 31, 2014, the Company decreased its valuation allowance by $3.6 million which relates primarily to a reduction in valuation allowance on the Yodlee investment, partially offset by an increase in valuation allowance related to foreign tax credits. | |||||||||||||
At December 31, 2014, the Company had domestic tax net operating losses (“NOLs”) of $358.1 million which will begin to expire in 2017. The Company had foreign tax NOLs of $70.6 million, of which $60.6 million may be utilized over an indefinite life, with the remainder expiring over the next 10 years. The Company has provided a $6.7 million valuation allowance against the tax benefit associated with the foreign NOLs. | |||||||||||||
The Company had U.S. foreign tax credit carryforwards at December 31, 2014 of $32.9 million, for which a $9.2 million valuation allowance has been provided. The U.S. foreign tax credits will begin to expire in 2015. The Company also had domestic general business credit carryforwards at December 31, 2014 of $10.3 million, which will begin to expire in 2020. | |||||||||||||
The unrecognized tax benefit at December 31, 2014 and December 31, 2013 was $14.8 million and $15.0 million, respectively, all of which is included in other noncurrent liabilities in the consolidated balance sheet. Of these amounts, $13.0 million and $13.2 million, respectively, represent the net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate in respective years. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance of unrecognized tax benefits at beginning of year | $ | 14,996 | $ | 13,079 | $ | 4,012 | |||||||
Increases for tax positions of prior years | 84 | 1,560 | 10,729 | ||||||||||
Decreases for tax positions of prior years | (412 | ) | (327 | ) | (4 | ) | |||||||
Increases for tax positions established for the current period | 491 | 1,739 | 49 | ||||||||||
Decreases for settlements with taxing authorities | — | (61 | ) | (27 | ) | ||||||||
Reductions resulting from lapse of applicable statute of limitation | (239 | ) | (901 | ) | (1,697 | ) | |||||||
Adjustment resulting from foreign currency translation | (140 | ) | (93 | ) | 17 | ||||||||
Balance of unrecognized tax benefits at end of year | $ | 14,780 | $ | 14,996 | $ | 13,079 | |||||||
The increases for tax positions of prior years for 2013 and 2012 in the above table include amounts from acquisitions completed during 2013 and 2012, respectively. | |||||||||||||
The Company files income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions, and many foreign jurisdictions. The U.S., Australia, Canada, India, Ireland, South Africa, and United Kingdom are the main taxing jurisdictions in which the Company operates. The years open for audit vary depending on the tax jurisdiction. In the U.S., the Company’s tax returns for years following 2009 are open for audit. In the foreign jurisdictions, the tax returns open for audit generally vary by jurisdiction between 2002 and 2013. | |||||||||||||
The Internal Revenue Service is currently auditing the Company’s calendar year 2010 and 2011 tax returns. The Company does not expect any adjustments from this audit that would have a material effect on the Company’s financial statements. The Company’s Indian income tax returns covering fiscal years 2002 through 2007 and 2010 through 2012 are under audit by the Indian tax authority. Other foreign subsidiaries could face challenges from various foreign tax authorities. It is not certain that the local authorities will accept the Company’s tax positions. The Company believes its tax positions comply with applicable tax law and intends to vigorously defend its positions. However, differing positions on certain issues could be upheld by tax authorities, which could adversely affect the Company’s financial condition and results of operations. | |||||||||||||
The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $5.0 million due to the settlement of various audits and the expiration of statutes of limitations. The Company accrues interest related to uncertain tax positions in interest expense or interest income and recognizes penalties related to uncertain tax positions in other income or other expense. As of December 31, 2014 and December 31, 2013, $2.4 million and $2.3 million, respectively is accrued for the payment of interest and penalties related to income tax liabilities. The aggregate amount of interest and penalties recorded in the statement of income for the years ended December 31, 2014, 2013, and 2012 is $0.2 million, $0.4 million, and $(0.2) million, respectively. | |||||||||||||
The undistributed earnings of the Company’s foreign subsidiaries of approximately $212.1 million are considered to be permanently reinvested. Accordingly, no provision for U.S. federal and state income taxes or foreign withholding taxes has been provided for such undistributed earnings. The determination of the additional U.S. federal and state income taxes or foreign withholding taxes that have not been provided is not practicable. | |||||||||||||
On January 2, 2013 the American Taxpayer Relief Act of 2012 was enacted, which included retroactive reinstatement of several tax laws to January 1, 2012. The effects on the Company of these retroactive changes in the tax law related to fiscal 2012 is $1.4 million, which was recognized as a benefit to income tax expense in the first quarter of fiscal 2013, the quarter in which the law was enacted. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 14. Commitments and Contingencies | ||||
In accordance with ASC 460, Guarantees, the Company recognizes the fair value for guarantee and indemnification arrangements it issues or modifies, if these arrangements are within the scope of the interpretation. In addition, the Company must continue to monitor the conditions that are subject to the guarantees and indemnifications as required under the previously existing generally accepted accounting principles, in order to identify if a loss has occurred. If the Company determines it is probable that a loss has occurred, then any such estimable loss would be recognized under those guarantees and indemnifications. Under its customer agreements, the Company may agree to indemnify, defend and hold harmless its customers from and against certain losses, damages and costs arising from claims alleging that the use of its software infringes the intellectual property of a third-party. Historically, the Company has not been required to pay material amounts in connection with claims asserted under these provisions and accordingly, the Company has not recorded a liability relating to such provisions. | |||||
Under its customer agreements, the Company also may represent and warrant to customers that its software will operate substantially in conformance with its documentation and that the services the Company performs will be performed in a workmanlike manner, by personnel reasonably qualified by experience and expertise to perform their assigned tasks. Historically, only minimal costs have been incurred relating to the satisfaction of warranty claims. In addition, from time to time, the Company may guarantee the performance of a contract on behalf of one or more of its subsidiaries, or a subsidiary may guarantee the performance of a contract on behalf of another subsidiary. | |||||
Other guarantees include promises to indemnify, defend and hold harmless the Company’s executive officers, directors and certain other key officers. The Company’s certificate of incorporation provides that it will indemnify, and advance expenses to, its directors and officers to the maximum extent permitted by Delaware law. The indemnification covers any expenses and liabilities reasonably incurred by a person, by reason of the fact that such person is or was or has agreed to be a director or officer, in connection with the investigation, defense and settlement of any threatened, pending or completed action, suit, proceeding or claim. The Company’s certificate of incorporation authorizes the use of indemnification agreements and the Company enters into such agreements with its directors and certain officers from time to time. These indemnification agreements typically provide for a broader scope of the Company’s obligation to indemnify the directors and officers than set forth in the certificate of incorporation. The Company’s contractual indemnification obligations under these agreements are in addition to the respective directors’ and officers’ rights under the certificate of incorporation or under Delaware law. | |||||
Operating Leases | |||||
The Company leases office space and equipment under operating leases that run through October 2028. The leases that the Company has entered into do not impose restrictions as to the Company’s ability to pay dividends or borrow funds, or otherwise restrict the Company’s ability to conduct business. On a limited basis, certain of the lease arrangements include escalation clauses which provide for rent adjustments due to inflation changes with the expense recognized on a straight-line basis over the term of the lease. Lease payments subject to inflation adjustments do not represent a significant portion of the Company’s future minimum lease payments. A number of the leases provide renewal options, but in all cases such renewal options are at the election of the Company. Certain of the lease agreements provide the Company with the option to purchase the leased equipment at its fair market value at the conclusion of the lease term. | |||||
Total operating lease expense for the years ended December 31, 2014, 2013 and 2012 was $26.7 million, $30.9 million, and $26.5 million, respectively. | |||||
Aggregate minimum operating lease payments under these agreements in future fiscal years are as follows (in thousands): | |||||
Fiscal Year Ending December 31, | Operating | ||||
Leases | |||||
2015 | $ | 17,315 | |||
2016 | 15,959 | ||||
2017 | 12,376 | ||||
2018 | 10,716 | ||||
2019 | 9,050 | ||||
Thereafter | 28,234 | ||||
Total minimum lease payments | $ | 93,650 | |||
Legal Proceedings | |||||
From time to time, the Company is involved in various litigation matters arising in the ordinary course of its business. The Company is not currently a party to any legal proceedings, the adverse outcome of which, individually or in the aggregate, the Company believes would be likely to have a material effect on the Company’s financial statements. | |||||
Indemnities | |||||
Under certain customer contracts, the Company indemnifies customers for certain matters including third party claims of intellectual property infringement relating to the use of our products. Our maximum potential exposure under indemnification arrangements can range from a specified dollar amount to an unlimited amount, depending on the nature of the transactions and the agreements. The Company has recorded an accrual for estimated losses for demands for indemnification that have been tendered by certain customers. The Company does not have any reason to believe that we will be required to make any material payments under these indemnity provisions in excess of the balance accrued at December 31, 2014. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated Other Comprehensive Loss | 15. Accumulated Other Comprehensive Loss | ||||||||||||
Activity within accumulated other comprehensive loss for the three years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||||
Unrealized gain on | Foreign | Accumulated other | |||||||||||
available-for-sale | currency | comprehensive loss | |||||||||||
securities | translation | ||||||||||||
Balance at December 31, 2011 | $ | 594 | $ | (17,855 | ) | $ | (17,261 | ) | |||||
Other comprehensive income | 963 | 3,824 | 4,787 | ||||||||||
Reclassification of unrealized gain to a realized gain on available-for-sale securities | (1,557 | ) | — | (1,557 | ) | ||||||||
Balance at December 31, 2012 | — | (14,031 | ) | (14,031 | ) | ||||||||
Other comprehensive loss | — | (9,284 | ) | (9,284 | ) | ||||||||
Balance at December 31, 2013 | — | (23,315 | ) | (23,315 | ) | ||||||||
Other comprehensive income (loss) | 22,977 | (19,545 | ) | 3,432 | |||||||||
Balance at December 31, 2014 | $ | 22,977 | $ | (42,860 | ) | $ | (19,883 | ) | |||||
The Company had equity securities of $10.6 million at December 31, 2011 that were comprised entirely of S1 Corporation common stock for which the Company utilized quoted prices from an active exchange market to fair value the equity securities. As discussed in Note 2, Acquisitions, the Company acquired S1 during the first quarter of 2012 and the S1 common stock was subsequently delisted. All S1 assets and liabilities have been consolidated into the Company’s consolidated financial statements as of December 31, 2014, 2013, and 2012. The Company recognized a gain of approximately $1.6 million during the year ended December 31, 2012 related to price appreciation of the S1 shares held prior to the acquisition date. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Quarterly Financial Data | 16. Quarterly Financial Data (unaudited) | ||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||
Revenues: | |||||||||||||||||||||
License | $ | 35,702 | $ | 61,377 | $ | 57,653 | $ | 80,425 | $ | 235,157 | |||||||||||
Maintenance | 62,499 | 62,309 | 63,764 | 67,421 | 255,993 | ||||||||||||||||
Services | 22,588 | 24,991 | 28,194 | 29,811 | 105,584 | ||||||||||||||||
Hosting | 100,684 | 106,131 | 100,033 | 112,567 | 419,415 | ||||||||||||||||
Total revenues | 221,473 | 254,808 | 249,644 | 290,224 | 1,016,149 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of license (1) | 5,736 | 6,897 | 5,433 | 6,499 | 24,565 | ||||||||||||||||
Cost of maintenance, services and hosting (1) | 107,887 | 112,595 | 105,319 | 104,390 | 430,191 | ||||||||||||||||
Research and development | 37,456 | 38,876 | 36,321 | 31,554 | 144,207 | ||||||||||||||||
Selling and marketing | 27,909 | 28,007 | 27,078 | 29,053 | 112,047 | ||||||||||||||||
General and administrative | 25,116 | 24,682 | 25,329 | 19,938 | 95,065 | ||||||||||||||||
Depreciation and amortization | 17,078 | 17,010 | 18,295 | 19,519 | 71,902 | ||||||||||||||||
Total operating expenses | 221,182 | 228,067 | 217,775 | 210,953 | 877,977 | ||||||||||||||||
Operating income | 291 | 26,741 | 31,869 | 79,271 | 138,172 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest expense | (9,175 | ) | (9,329 | ) | (10,416 | ) | (10,818 | ) | (39,738 | ) | |||||||||||
Interest income | 199 | 135 | 98 | 143 | 575 | ||||||||||||||||
Other, net | (1,057 | ) | (3,901 | ) | 3,614 | 1,104 | (240 | ) | |||||||||||||
Total other income (expense) | (10,033 | ) | (13,095 | ) | (6,704 | ) | (9,571 | ) | (39,403 | ) | |||||||||||
Income (loss) before income taxes | (9,742 | ) | 13,646 | 25,165 | 69,700 | 98,769 | |||||||||||||||
Income tax expense (benefit) | (3,967 | ) | 2,409 | 9,433 | 23,334 | 31,209 | |||||||||||||||
Net income (loss) | $ | (5,775 | ) | $ | 11,237 | $ | 15,732 | $ | 46,366 | $ | 67,560 | ||||||||||
Earnings (loss) per share | |||||||||||||||||||||
Basic | $ | (0.05 | ) | $ | 0.1 | $ | 0.14 | $ | 0.4 | $ | 0.59 | ||||||||||
Diluted | $ | (0.05 | ) | $ | 0.1 | $ | 0.14 | $ | 0.4 | $ | 0.58 | ||||||||||
-1 | The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charges for depreciation. | ||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||||
(in thousands, except per share amounts) | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||
Revenues: | |||||||||||||||||||||
License | $ | 41,356 | $ | 53,714 | $ | 56,236 | $ | 82,625 | $ | 233,931 | |||||||||||
Maintenance | 58,634 | 57,830 | 60,457 | 69,033 | 245,954 | ||||||||||||||||
Services | 23,929 | 26,964 | 30,240 | 40,952 | 122,085 | ||||||||||||||||
Hosting | 38,078 | 67,322 | 67,006 | 90,552 | 262,958 | ||||||||||||||||
Total revenues | 161,997 | 205,830 | 213,939 | 283,162 | 864,928 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of license (1) | 5,918 | 6,169 | 5,888 | 7,349 | 25,324 | ||||||||||||||||
Cost of maintenance, services and hosting (1) | 61,871 | 82,573 | 80,948 | 93,123 | 318,515 | ||||||||||||||||
Research and development | 37,149 | 38,391 | 33,642 | 33,375 | 142,557 | ||||||||||||||||
Selling and marketing | 25,074 | 27,538 | 24,098 | 23,118 | 99,828 | ||||||||||||||||
General and administrative | 25,037 | 26,147 | 24,559 | 23,557 | 99,300 | ||||||||||||||||
Depreciation and amortization | 10,957 | 13,490 | 15,249 | 16,660 | 56,356 | ||||||||||||||||
Total operating expenses | 166,006 | 194,308 | 184,384 | 197,182 | 741,880 | ||||||||||||||||
Operating income (loss) | (4,009 | ) | 11,522 | 29,555 | 85,980 | 123,048 | |||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest expense | (3,897 | ) | (6,053 | ) | (7,453 | ) | (9,818 | ) | (27,221 | ) | |||||||||||
Interest income | 131 | 211 | 159 | 158 | 659 | ||||||||||||||||
Other, net | 3,165 | (1,519 | ) | (3,152 | ) | (1,821 | ) | (3,327 | ) | ||||||||||||
Total other income (expense) | (601 | ) | (7,361 | ) | (10,446 | ) | (11,481 | ) | (29,889 | ) | |||||||||||
Income (loss) before income taxes | (4,610 | ) | 4,161 | 19,109 | 74,499 | 93,159 | |||||||||||||||
Income tax expense (benefit) | (2,444 | ) | 2,280 | 5,347 | 24,108 | 29,291 | |||||||||||||||
Net income (loss) | $ | (2,166 | ) | $ | 1,881 | $ | 13,762 | $ | 50,391 | $ | 63,868 | ||||||||||
Earnings (loss) per share | |||||||||||||||||||||
Basic (2) (3) | $ | (0.02 | ) | $ | 0.02 | $ | 0.12 | $ | 0.43 | $ | 0.54 | ||||||||||
Diluted (2) (3) | $ | (0.02 | ) | $ | 0.02 | $ | 0.12 | $ | 0.43 | $ | 0.53 | ||||||||||
-1 | The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charges for depreciation. | ||||||||||||||||||||
-2 | The sum of the earnings per share by quarter does not agree to the earnings per share for the year ended December 31, 2013 due to rounding. | ||||||||||||||||||||
-3 | Earnings (loss) per share balances by quarter have been retroactively adjusted for the three-for-one stock split approved on July 10, 2014. |
Nature_of_Business_and_Summary1
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Nature of Business | Nature of Business | ||||||||||||||||
ACI Worldwide, Inc., a Delaware corporation, and its subsidiaries (collectively referred to as “ACI” or the “Company”), develop, market, install, and support a broad line of software products and services primarily focused on facilitating electronic payments. In addition to its own products, the Company distributes, or acts as a sales agent for software developed by third parties. These products and services are used principally by financial institutions, retailers, and electronic-payment processors, both in domestic and international markets. | |||||||||||||||||
Consolidated Financial Statements | Consolidated Financial Statements | ||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Recently acquired subsidiaries that are included in the Company’s consolidated financial statements as of the date of their acquisition include: Retail Decisions Europe Limited (“ReD Europe”) and all its subsidiaries and Retail Decisions, Inc. (“ReD, Inc.”) (collectively “ReD”) acquired during the year ended December 31, 2014, Official Payments Holdings, Inc. (“OPAY”), Online Resources Corporation (“ORCC”), and Profesionales en Transacciones Electonicas S.A. (“PTESA”) acquired during the year ended December 31, 2013 and S1 Corporation (“S1”), North Data Uruguay S.A. (“North Data”), and Distra Pty Ltd. (“Distra”) acquired during the year ended December 31, 2012. All intercompany balances and transactions have been eliminated. | |||||||||||||||||
Capital Stock | Capital Stock | ||||||||||||||||
The Company’s outstanding capital stock consists of a single class of common stock. Each share of common stock is entitled to one vote upon each matter subject to a stockholders vote and to dividends if and when declared by the Board of Directors. | |||||||||||||||||
On April 10, 2014, the Company announced that its Board of Directors approved a three-for-one stock split of the Company’s common stock, which was affected in the form of a common stock dividend distributed on July 10, 2014. The Company’s par value remained $0.005 per common share, resulting in an adjustment to increase the total common stock balance with an equal and offsetting adjustment to additional paid-in-capital. Stockholders’ equity and all references to share and per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the three-for-one stock split for all periods presented. | |||||||||||||||||
Noncontrolling Interest | Noncontrolling Interest | ||||||||||||||||
On April 10, 2014, the Company dissolved its partnership based in South Africa with Cornastone Technology Investments (Proprietary) Limited (“CTI”). As a result, the Company paid CTI approximately $1.5 million during the year-ended December 31, 2014 for CTI’s noncontrolling interest and loan balance. Noncontrolling interest in this partnership of $1.1 million was included in other noncurrent liabilities as of December 31, 2013. | |||||||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Revenue Recognition, Receivables and Deferred Revenue | Revenue Recognition, Receivables and Deferred Revenue | ||||||||||||||||
License. The Company recognizes license revenue in accordance with ASC 985-605, Revenue Recognition: Software. For software license arrangements for which services rendered are primarily related to installation of core software and are not considered essential to the functionality of the software, the Company recognizes revenue upon delivery, provided (i) there is persuasive evidence of an arrangement, (ii) collection of the fee is considered probable and (iii) the fee is fixed or determinable. In most arrangements, vendor-specific objective evidence (“VSOE”) of fair value does not exist for the license element; therefore, the Company uses the residual method under ASC 985-605 to determine the amount of revenue to be allocated to the license element. Under ASC 985-605, the fair value of all undelivered elements, such as post contract customer support (maintenance or “PCS”) or other products or services, is deferred and subsequently recognized as the products are delivered or the services are performed, with the residual difference between the total arrangement fee and revenues allocated to undelivered elements being allocated to the delivered element. | |||||||||||||||||
When a software license arrangement includes services to provide significant modification or customization of software, those services are considered essential to the functionality of the software and are not separable from the software. These arrangements are accounted for in accordance with ASC 605-35, Revenue Recognition: Construction-Type and Production-Type Contracts, generally referred to as contract accounting. Under contract accounting, the Company generally uses the percentage-of-completion method. For those contracts subject to percentage-of-completion contract accounting, estimates of total revenue and profitability under the contract consider amounts due under extended payment terms. The Company recognizes revenue under these arrangements based on the lesser of payments that become due or the revenue calculated under the percentage-of-completion method. Under the percentage-of-completion method, the Company records revenue for the license and services over the development and implementation period, with the percentage of completion generally measured by the percentage of labor hours incurred to-date to estimated total labor hours for each contract. In the event project profitability is assured and estimable within a range, percentage-of-completion revenue recognition is computed using the lowest level of profitability in the range. If it is determined that a loss will result from the performance of a contract, the entire amount of the loss is recognized in the period in which it is determined that a loss will result. | |||||||||||||||||
For software license arrangements in which a significant portion of the fee is due more than 12 months after delivery or when payment terms are significantly beyond the Company’s standard business practice, the license is deemed not to be fixed or determinable. For software license arrangements in which the fee is not considered fixed or determinable, the license is recognized as revenue as payments become due and payable, provided all other conditions for revenue recognition have been met. For software license arrangements in which the Company has concluded that collection of the fees is not probable, revenue is recognized as cash is collected, provided all other conditions for revenue recognition have been met. In making the determination of collectability, the Company considers the creditworthiness of the customer, economic conditions in the customer’s industry and geographic location, and general economic conditions. | |||||||||||||||||
ASC 985-605 requires the seller of software that includes PCS to establish VSOE of fair value of the undelivered element of the contract in order to account separately for the PCS revenue. The Company has traditionally established VSOE of the fair value of PCS by reference to stated renewals, expressed in dollar terms, or separate sales with consistent pricing of PCS expressed in percentage terms. In determining whether a stated renewal is not substantive, the Company considers factors such as whether the period of the initial PCS term is relatively long when compared to the term of the software license or whether the PCS renewal rate is significantly below the Company’s normal pricing practices. In determining whether PCS pricing is consistent, the Company considers the population of separate sales that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period. | |||||||||||||||||
For those software license arrangements that include customer-specific acceptance provisions, such provisions are generally presumed to be substantive and the Company does not recognize revenue until the earlier of the receipt of a written customer acceptance, objective demonstration that the delivered product meets the customer-specific acceptance criteria or the expiration of the acceptance period. The Company recognizes revenues on such arrangements upon the earlier of receipt of written acceptance or the first production use of the software by the customer. In the absence of customer-specific acceptance provisions, software license arrangements generally grant customers a right of refund or replacement only if the licensed software does not perform in accordance with its published specifications. If the Company’s product history supports an assessment by management that the likelihood of non-acceptance is remote, the Company recognizes revenue when all other criteria of revenue recognition are met. | |||||||||||||||||
For software license arrangements in which the Company acts as a sales agent for another company’s products, revenues are recorded on a net basis. These include arrangements in which the Company does not take title to the products, is not responsible for providing the product or service, earns a fixed commission, or assumes credit risk only to the extent of its commission. For software license arrangements in which the Company acts as a distributor of another company’s product, and in certain circumstances, modifies or enhances the product, revenues are recorded on a gross basis. These include arrangements in which the Company takes title to the products and is responsible for providing the product or service. | |||||||||||||||||
For software license arrangements in which the Company utilizes a third-party distributor or sales agent, the Company recognizes revenue on a sell-in basis when business practices and operating history indicate that there is no risk of returns, rebates, or credits and there are no other risks related to the distributor or sales agents’ ability to honor payment or distribution commitments. For other arrangements in which any of the above factors indicate that there are risks of returns, rebates, or credits or any other risks related to the distributors’ or sales agents’ ability to honor payment or distribution commitments, the Company recognizes revenue on a sell-through basis. | |||||||||||||||||
For software license arrangements in which the Company permits the customer to receive unspecified future software products during the software license term, the Company recognizes revenue ratably over the license term, provided all other revenue recognition criteria have been met. For software license arrangements in which the Company grants the customer a right to exchange the original software product for specified future software products with more than minimal differences in features, functionality, and/or price, during the license term, revenue is recognized upon the earlier of delivery of the additional software products or at the time the exchange right lapses. For customers granted a right to exchange the original software product for specified future software products where the Company has determined price, feature, and functionality differences are minimal, the exchange right is accounted for as a like-kind exchange and revenue is recognized upon delivery of the currently licensed product. For software license arrangements in which the customer is charged variable license fees based on usage of the product, the Company recognizes revenue as usage occurs over the term of the licenses, provided all other revenue recognition criteria have been met. | |||||||||||||||||
Effective July 2013, the Company establishes VSOE of fair value of PCS by reference to stated renewals for all identified market segments. The Company continues to consider factors such as whether the period of the initial PCS term is relatively long when compared to the term of the software license or whether the PCS renewal is significantly below the Company’s normal pricing practices. In determining whether PCS pricing is significantly below the Company’s normal pricing practice, the Company considers the population of stated renewal rates that are within a reasonably narrow range of the median within the identified market segment over the trailing 12 month period. The change in estimation methodology does not have a material effect on our financial statements. | |||||||||||||||||
Certain of the Company’s software license arrangements include PCS terms that fail to achieve VSOE of fair value due to non-substantive renewal periods, or contain a range of possible non-substantive PCS renewal amounts. For these arrangements, VSOE of fair value of PCS does not exist and revenues for the software license, PCS and services, if applicable, are considered to be one accounting unit and are therefore recognized ratably over the longer of the contractual service term or PCS term once the delivery of both services has commenced. The Company typically classifies revenues associated with these arrangements in accordance with the contractually specified amounts, which approximate fair value assigned to the various elements, including software license, maintenance and services, if applicable. | |||||||||||||||||
This allocation methodology has been applied to the following amounts included in revenues in the consolidated statements of income from arrangements for which VSOE of fair value does not exist for each undelivered element (in thousands): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
License | $ | 22,211 | $ | 22,190 | $ | 38,226 | |||||||||||
Maintenance | 7,699 | 9,649 | 14,178 | ||||||||||||||
Services | 13 | 10 | 830 | ||||||||||||||
Total | $ | 29,923 | $ | 31,849 | $ | 53,234 | |||||||||||
Maintenance. The Company typically enters into multi-year time-based software license arrangements that vary in length but are generally five years. These arrangements include an initial (bundled) PCS term of one year with subsequent renewals for additional years within the initial license period. Effective July 2013, the Company establishes VSOE of the fair value of PCS by reference to stated renewals for all identified market segments. For arrangements in which the Company looks to substantive renewal rates to evidence VSOE of fair value of PCS and in which the PCS renewal rate and term are substantive, VSOE of fair value of PCS is determined by reference to the stated renewal rate. For these arrangements, PCS revenues are recognized ratably over the PCS term specified in the contract. In arrangements where VSOE of fair value of PCS cannot be determined (for example, a time-based software license with a duration of one year or less or when the range of possible PCS renewal amounts is not sufficiently narrow or is significantly below the Company’s normal pricing practices), the Company recognizes revenue for the entire arrangement ratably over the longer of the initial PCS term or the Services term (if any). | |||||||||||||||||
For those arrangements that meet the criteria to be accounted for under contract accounting, the Company determines whether VSOE of fair value exists for the PCS element. For those arrangements in which VSOE of fair value exists for the PCS element, PCS is accounted for separately and the balance of the arrangement is accounted for under ASC 985-605. For those arrangements in which VSOE of fair value does not exist for the PCS element all revenue is deferred until such time as the services are complete. Once services are complete, revenue is then recognized ratably over the remaining PCS period. | |||||||||||||||||
Services. The Company provides various professional services to customers, primarily project management, software implementation and software modification services. Revenues from arrangements to provide professional services are generally recognized as the related services are performed. | |||||||||||||||||
For those arrangements in which services revenue is deferred and the Company determines that the direct costs of services are recoverable, such costs are deferred and subsequently expensed in proportion to the related services revenue as it is recognized. For those arrangements that are accounted for under contract accounting, the Company accumulates and defers all direct and indirect costs allocable to the arrangement. For those arrangements that are not accounted for under contract accounting, the Company accumulates and defers all direct and incremental costs attributable to the arrangement. | |||||||||||||||||
Hosting. In accordance with ASC 605-25, Revenue Recognition – Multiple-Element Arrangements, a multiple-deliverable arrangement is separated into more than one unit of accounting if the delivered item(s) has value to the customer on a stand-alone basis, if the arrangement includes a general right of return relative to the delivered item(s), and if delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. If these criteria are not met, the arrangement is accounted for as a single unit of accounting which would result in revenue being recognized ratably over the contract term or being deferred until the earlier of when such criteria are met or when the last undelivered element is delivered. If these criteria are met for each, the arrangement consideration is allocated to the separate units of accounting based on each unit’s relative selling price. The selling price for each element is based upon the following selling price hierarchy: VSOE if available, third party evidence (“TPE”) if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available. | |||||||||||||||||
The Company enters into hosting-related arrangements that may consist of multiple service deliverables including initial implementation and setup services, on-going support services, and other services. The Company’s hosted products operate in a highly regulated and controlled environment which requires a highly specialized and unique set of initial implementation and setup services prior to the commencement of hosting-related services. Due to the essential and specialized nature of the implementation and setup services, these services do not qualify as separate units of accounting separate from the hosting service as the delivered services do not have value to the customer on a stand-alone basis. The on-going support and other services are considered as separate units of accounting as are add-on products that do not impact the availability of functionality currently in use. The total arrangement consideration is allocated to each of the separate units of accounting based on their relative selling price and revenue is recognized over their respective service periods. | |||||||||||||||||
Hosting revenue also includes fees paid by our clients as a part of the acquired electronic bill presentment and payment products. Fees may be paid by our clients or directly by their customers and may be a percentage of the underlying transaction amount, a fixed fee per executed transaction or a monthly fee for each customer enrolled. Hosting costs include payment card interchange fees, assessments payable to banks and payment card processing fees. | |||||||||||||||||
Multiple Arrangements. The Company may execute more than one contract or agreement with a single customer. The separate contracts or agreements may be viewed as one multiple-element arrangement or separate agreements for revenue recognition purposes. The Company evaluates whether the agreements were negotiated as part of a single project, whether the products or services are interrelated or interdependent, whether fees in one arrangement are tied to performance in another arrangement, and whether elements in one arrangement are essential to the functionality in another arrangement in order to reach appropriate conclusions regarding whether such arrangements are related or separate. The conclusions reached can impact the timing of revenue recognition related to those arrangements. | |||||||||||||||||
Deferred Revenue. Deferred revenue includes amounts currently due and payable from customers, and payments received from customers, for software licenses, maintenance, hosting and/or services in advance of recording the related revenue. | |||||||||||||||||
Receivables and Concentration of Credit Risk. Receivables represent amounts billed and amounts earned that are to be billed in the near future. Included in accrued receivables are services and software hosting revenues earned in the current period but billed in the following period as well as license revenues that are determined to be fixed and determinable but billed in future periods. | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Billed Receivables | $ | 200,392 | $ | 173,100 | |||||||||||||
Allowance for doubtful accounts | (4,806 | ) | (4,459 | ) | |||||||||||||
Billed, net | 195,586 | 168,641 | |||||||||||||||
Accrued Receivables | 31,520 | 34,934 | |||||||||||||||
Receivables, net | $ | 227,106 | $ | 203,575 | |||||||||||||
No customer accounted for more than 10% of the Company’s consolidated receivables balance as of December 31, 2014 or 2013. | |||||||||||||||||
The Company maintains a general allowance for doubtful accounts based on historical experience, along with additional customer-specific allowances. The Company regularly monitors credit risk exposures in accounts receivable. In estimating the necessary level of our allowance for doubtful accounts, management considers the aging of accounts receivable, the creditworthiness of customers, economic conditions within the customer’s industry, and general economic conditions, among other factors. | |||||||||||||||||
The following reflects activity in the Company’s allowance for doubtful accounts receivable (in thousands): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance, beginning of period | $ | (4,459 | ) | $ | (8,117 | ) | $ | (4,843 | ) | ||||||||
Provision (increase) decrease | (1,049 | ) | 1,161 | (3,173 | ) | ||||||||||||
Amounts written off, net of recoveries | 1,053 | 2,296 | 35 | ||||||||||||||
Foreign currency translation adjustments and other | (351 | ) | 201 | (136 | ) | ||||||||||||
Balance, end of period | $ | (4,806 | ) | $ | (4,459 | ) | $ | (8,117 | ) | ||||||||
Provision (increases) decreases recorded in general and administrative expenses during the years ended December 31, 2014, 2013, 2012 reflect increases (decreases) in the allowance for doubtful accounts based upon collection experience in the geographic regions in which the Company conducts business, net of collection of customer-specific receivables which were previously reserved for as doubtful of collection. | |||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||||||
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash and cash equivalents includes holdings in checking, savings, money market and overnight sweep accounts, all of which have daily maturities, as well as time deposits with maturities of three months or less at the date of purchase. The carrying amounts of cash and cash equivalents on the consolidated balance sheets approximate fair value. | |||||||||||||||||
Other Current Assets and Other Current Liabilities | Other Current Assets and Other Current Liabilities | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Settlement deposits | $ | 13,252 | $ | 27,770 | |||||||||||||
Settlement receivables | 11,032 | 20,119 | |||||||||||||||
Current debt issuance costs | 6,244 | 5,276 | |||||||||||||||
Other | 9,889 | 12,163 | |||||||||||||||
Total other current assets | $ | 40,417 | $ | 65,328 | |||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Settlement payables | $ | 21,715 | $ | 42,841 | |||||||||||||
Accrued interest | 7,256 | 7,074 | |||||||||||||||
Vendor financed licenses | 7,340 | 6,410 | |||||||||||||||
Royalties payable | 4,070 | 5,627 | |||||||||||||||
Other | 27,124 | 33,064 | |||||||||||||||
Total other current liabilities | $ | 67,505 | $ | 95,016 | |||||||||||||
Individuals and businesses settle their obligations to the Company’s various Clients, primarily utility and other public sector Clients, using credit or debit cards or via ACH payments. The Company creates a receivable for the amount due from the credit or debit card company and an offsetting payable to the Client. Once confirmation is received that the funds have been received, the Company settles the obligation to the Client. Due to timing, in some instances, the Company may 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. | |||||||||||||||||
Off Balance Sheet Settlement Accounts | Off Balance Sheet Settlement Accounts | ||||||||||||||||
The Company also enters into agreements with certain clients to process payment funds on their behalf. When an automated clearing house 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, the settlement accounts are not included in the Company’s balance sheet. The Company is entitled to interest earned on the fund balances. The collection of interest on these settlement accounts is considered in the Company’s determination of its fee structure for clients and represents a portion of the payment for services performed by the Company. The amount of settlement funds as of December 31, 2014 and 2013 were $224.9 million and $284.0 million, respectively. | |||||||||||||||||
Property and Equipment | Property and Equipment | ||||||||||||||||
Property and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over their estimated useful lives based on asset class. As of December 31, 2014 and 2013, net property and equipment consisted of the following (in thousands): | |||||||||||||||||
Useful Lives | 2014 | 2013 | |||||||||||||||
Computer and office equipment | 3 to 5 years | $ | 81,850 | $ | 72,163 | ||||||||||||
Leasehold improvements | Lesser of useful life of improvement or remaining life of lease | 17,193 | 15,210 | ||||||||||||||
Furniture and fixtures | 7 years | 11,202 | 10,537 | ||||||||||||||
Building and improvements | 7 – 30 years | 8,884 | 5,869 | ||||||||||||||
Land | Non depreciable | 1,785 | 1,336 | ||||||||||||||
120,914 | 105,115 | ||||||||||||||||
Less: accumulated depreciation and amortization | (60,554 | ) | (47,768 | ) | |||||||||||||
Property and equipment, net | $ | 60,360 | $ | 57,347 | |||||||||||||
Software | Software | ||||||||||||||||
Software may be for internal use or available for sale. Costs related to certain software, which is available for sale, are capitalized in accordance with ASC 985-20, Costs of Software to be Sold, Leased, or Marketed, when the resulting product reaches technological feasibility. The Company generally determines technological feasibility when it has a detailed program design that takes product function, feature and technical requirements to their most detailed, logical form and is ready for coding. The Company does not typically capitalize costs related to software available for sale as technological feasibility generally coincides with general availability of the software. | |||||||||||||||||
Amortization of software costs to be sold or marketed externally, begins when the product is available for licensing to customers and is determined on a product-by-product basis. The annual amortization shall be the greater of the amount computed using (a) the ratio of current gross revenues for a product to the total of current and anticipated future gross revenues for that product or (b) the straight-line method over the remaining estimated economic life of the product, including the period being reported on. Due to competitive pressures, it may be possible that the estimates of anticipated future gross revenue or remaining estimated economic life of the software product will be reduced significantly. As a result, the carrying amount of the software product may be reduced accordingly. Amortization of internal-use software is generally computed using the straight-line method over estimated useful lives of three to ten years. | |||||||||||||||||
Business Combinations | Business Combinations | ||||||||||||||||
The Company applies the provisions of ASC 805, Business Combinations, in the accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, it records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of income. | |||||||||||||||||
Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships, covenants not to compete and acquired developed technologies, brand awareness and market position, as well as assumptions about the period of time the brand will continue to be used in our product portfolio, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. | |||||||||||||||||
Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed, as more fully discussed in Note 2, Acquisitions. | |||||||||||||||||
Goodwill and Other Intangibles | Goodwill and Other Intangibles | ||||||||||||||||
In accordance with ASC 350, Intangibles – Goodwill and Other, the Company assesses goodwill for impairment at least annually. During this assessment management relies on a number of factors, including operating results, business plans and anticipated future cash flows. The Company assesses potential impairments to other intangible assets when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. | |||||||||||||||||
In accordance with ASC 350, 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 reportable segments, Americas, Europe/Middle East/Africa (“EMEA”), and Asia/Pacific, as its reporting units. 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 key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as Company-specific risk factors. Operational management, considering industry and Company-specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and low long-term growth rates. If the calculated fair value is less than the current carrying value, impairment of the reporting unit may exist. If the recoverability test indicates potential impairment, the Company calculates an implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in a manner similar to how goodwill is calculated in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded to write down the carrying value. The calculated fair value substantially exceeded the current carrying value for all reporting units for all periods. | |||||||||||||||||
Changes in the carrying amount of goodwill attributable to each reporting unit with goodwill balances during the years ended December 31, 2014 and 2013, were as follows (in thousands): | |||||||||||||||||
Americas | EMEA | Asia/Pacific | Total | ||||||||||||||
Gross Balance prior to December 31, 2012 | $ | 316,222 | $ | 158,653 | $ | 73,698 | $ | 548,573 | |||||||||
Total impairment prior to December 31, 2012 | (47,432 | ) | — | — | (47,432 | ) | |||||||||||
Balance, December 31, 2012 | 268,790 | 158,653 | 73,698 | 501,141 | |||||||||||||
Goodwill from acquisitions (1) | 173,101 | — | (832 | ) | 172,269 | ||||||||||||
Foreign currency translation adjustments | (625 | ) | 1,505 | (5,073 | ) | (4,193 | ) | ||||||||||
Balance, December 31, 2013 | 441,266 | 160,158 | 67,793 | 669,217 | |||||||||||||
Goodwill from acquisitions (2) | 36,623 | 84,515 | — | 121,138 | |||||||||||||
Foreign currency translation adjustments | (1,407 | ) | (4,370 | ) | (3,415 | ) | (9,192 | ) | |||||||||
Balance, December 31, 2014 | $ | 476,482 | $ | 240,303 | $ | 64,378 | $ | 781,163 | |||||||||
-1 | Addition relates to the goodwill acquired in the acquisitions of OPAY, ORCC, PTESA and Distra as discussed in Note 2, Acquisitions. | ||||||||||||||||
-2 | Goodwill from acquisitions relates to the goodwill recorded for the acquisition of ReD, as well as adjustments to goodwill related to the acquisitions of OPAY, ORCC, and PTESA as discussed in Note 2. The purchase price allocation for ReD is preliminary as of December 31, 2014 and accordingly is subject to future changes during the maximum one-year measurement period. | ||||||||||||||||
Other intangible assets, which include customer relationships, purchased contracts, trademarks and trade names, and covenants not to compete, are amortized using the straight-line method over periods ranging from three years to 20 years. The Company reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. | |||||||||||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | ||||||||||||||||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset group may not be recoverable. An impairment loss is recorded if the sum of the future cash flows expected to result from the use of the asset (undiscounted and without interest charges) is less than the carrying amount of the asset. The amount of the impairment charge is measured based upon the fair value of the asset group. | |||||||||||||||||
Treasury Stock | Treasury Stock | ||||||||||||||||
The Company accounts for shares of its common stock that are repurchased without intent to retire as treasury stock. Such shares are recorded at cost and reflected separately on the consolidated balance sheets as a reduction of stockholders’ equity. The Company issues shares of treasury stock upon exercise of stock options, issuance of restricted share awards, payment of earned performance shares, and for issuances of common stock pursuant to the Company’s employee stock purchase plan. For purposes of determining the cost of the treasury shares re-issued, the Company uses the average cost method. | |||||||||||||||||
Stock-Based Compensation Plans | Stock-Based Compensation Plans | ||||||||||||||||
In accordance with ASC 718, Compensation – Stock Compensation, the Company recognizes stock-based compensation costs for only those shares expected to vest, on a straight-line basis over the requisite service period of the award, which is generally the vesting term. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount of expense recognized. Forfeiture estimates are revised, if necessary, in subsequent periods when actual forfeitures differ from those estimates. Share based compensation expense is recorded in operating expenses depending on where the respective individual’s compensation is recorded. The Company generally utilizes the Black-Scholes option-pricing model to determine the fair value of stock options on the date of grant. The assumptions utilized in the Black-Scholes option-pricing model, as well as the description of the plans the stock-based awards are granted under, are described in further detail in Note 11, Stock-Based Compensation Plans. | |||||||||||||||||
Translation of Foreign Currencies | Translation of Foreign Currencies | ||||||||||||||||
The Company’s foreign subsidiaries typically use the local currency of the countries in which they are located as their functional currency. Their assets and liabilities are translated into United States dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average exchange rates during the period. Translation gains and losses are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). Transaction gains and losses, including those related to intercompany accounts, that are not considered to be of a long-term investment nature are included in the determination of net income. Transaction gains and losses, including those related to intercompany accounts, that are considered to be of a long-term investment nature are reflected in the consolidated financial statements as a component of accumulated other comprehensive income. | |||||||||||||||||
Since the undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested, the components of accumulated other comprehensive income have not been tax-effected. | |||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||
The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||||||||||
The Company periodically assesses its tax exposures and establishes, or adjusts, estimated unrecognized tax benefits for probable assessments by taxing authorities, including the Internal Revenue Service (“IRS”), and various foreign and state authorities. Such unrecognized tax benefits represent the estimated provision for income taxes expected to ultimately be paid. | |||||||||||||||||
Recently Issued Accounting Standards | Recently Issued Accounting Standards | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASC 606”). This ASU supersedes the revenue recognition requirements in Accounting Standard Codification 605, Revenue Recognition, and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. The standard permits the use of either the retrospective or cumulative effect transition method. At this time, the Company has not selected a transition method. The Company is currently assessing the impact of the adoption of ASU 2014-09 on its financial position, results of operations, and cash flow. | |||||||||||||||||
In June 2014, FASB issued ASU No. 2014-12, Compensation – Stock Compensation. This ASU is an amendment to the Accounting Standard Codification 718, Compensation – Stock Compensation, to explicitly address the accounting treatment of share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period should be treated as a performance condition. As such, a reporting entity should apply the existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. This ASU is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The Company has assessed the impact of this standard and does not anticipate it having a material impact on its financial position, results of operations or cash flow. | |||||||||||||||||
Fair Value of Financial Instruments | ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: | ||||||||||||||||
• Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||||||||||||||||
• Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. | |||||||||||||||||
• Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. | |||||||||||||||||
Earnings per share | Basic earnings per share is computed on the basis of weighted average outstanding common shares. Diluted earnings per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and other outstanding dilutive securities. | ||||||||||||||||
Segment Information | The Company’s chief operating decision maker, together with other senior management personnel, currently focus their review of consolidated financial information and the allocation of resources based on reporting of operating results, including revenues and operating income for the geographic regions of the Americas, EMEA and Asia/Pacific and the Corporate segment. The Company’s products are sold and supported through distribution networks covering these three geographic regions, with each distribution network having its own sales force. The Company supplements its distribution networks with independent reseller and/or distributor arrangements. All administrative costs that are not directly attributable or reasonably allocable to a geographic segment are tracked in the Corporate segment. As such, the Company has concluded that its three geographic regions are its reportable segments. | ||||||||||||||||
The Company allocates segment support expenses such as global product development, business operations, and product management based upon percentage of revenue per segment. Depreciation and amortization and other facility related costs are allocated as a percentage of the headcount by segment. The Corporate line item consists of the corporate overhead costs that are not allocated to operating segments. Corporate overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity and amortization of acquisition-related intangibles and software as well as other costs that are not considered when management evaluates segment performance. |
Nature_of_Business_and_Summary2
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Revenues in Condensed Consolidated Statements of Operations from Arrangements for which Vendor-Specific Objective Evidence of Fair Value Does Not Exist for Each Undelivered Element | This allocation methodology has been applied to the following amounts included in revenues in the consolidated statements of income from arrangements for which VSOE of fair value does not exist for each undelivered element (in thousands): | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
License | $ | 22,211 | $ | 22,190 | $ | 38,226 | |||||||||||
Maintenance | 7,699 | 9,649 | 14,178 | ||||||||||||||
Services | 13 | 10 | 830 | ||||||||||||||
Total | $ | 29,923 | $ | 31,849 | $ | 53,234 | |||||||||||
Receivables and Concentration of Credit Risk | Receivables and Concentration of Credit Risk. Receivables represent amounts billed and amounts earned that are to be billed in the near future. Included in accrued receivables are services and software hosting revenues earned in the current period but billed in the following period as well as license revenues that are determined to be fixed and determinable but billed in future periods. | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Billed Receivables | $ | 200,392 | $ | 173,100 | |||||||||||||
Allowance for doubtful accounts | (4,806 | ) | (4,459 | ) | |||||||||||||
Billed, net | 195,586 | 168,641 | |||||||||||||||
Accrued Receivables | 31,520 | 34,934 | |||||||||||||||
Receivables, net | $ | 227,106 | $ | 203,575 | |||||||||||||
Activity in Allowance for Doubtful Accounts Receivable | The following reflects activity in the Company’s allowance for doubtful accounts receivable (in thousands): | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance, beginning of period | $ | (4,459 | ) | $ | (8,117 | ) | $ | (4,843 | ) | ||||||||
Provision (increase) decrease | (1,049 | ) | 1,161 | (3,173 | ) | ||||||||||||
Amounts written off, net of recoveries | 1,053 | 2,296 | 35 | ||||||||||||||
Foreign currency translation adjustments and other | (351 | ) | 201 | (136 | ) | ||||||||||||
Balance, end of period | $ | (4,806 | ) | $ | (4,459 | ) | $ | (8,117 | ) | ||||||||
Components of Other Current Assets and Other Current Liabilities | Other Current Assets and Other Current Liabilities | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Settlement deposits | $ | 13,252 | $ | 27,770 | |||||||||||||
Settlement receivables | 11,032 | 20,119 | |||||||||||||||
Current debt issuance costs | 6,244 | 5,276 | |||||||||||||||
Other | 9,889 | 12,163 | |||||||||||||||
Total other current assets | $ | 40,417 | $ | 65,328 | |||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Settlement payables | $ | 21,715 | $ | 42,841 | |||||||||||||
Accrued interest | 7,256 | 7,074 | |||||||||||||||
Vendor financed licenses | 7,340 | 6,410 | |||||||||||||||
Royalties payable | 4,070 | 5,627 | |||||||||||||||
Other | 27,124 | 33,064 | |||||||||||||||
Total other current liabilities | $ | 67,505 | $ | 95,016 | |||||||||||||
Property and Equipment Estimated Useful Lives | Property and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over their estimated useful lives based on asset class. As of December 31, 2014 and 2013, net property and equipment consisted of the following (in thousands): | ||||||||||||||||
Useful Lives | 2014 | 2013 | |||||||||||||||
Computer and office equipment | 3 to 5 years | $ | 81,850 | $ | 72,163 | ||||||||||||
Leasehold improvements | Lesser of useful life of improvement or remaining life of lease | 17,193 | 15,210 | ||||||||||||||
Furniture and fixtures | 7 years | 11,202 | 10,537 | ||||||||||||||
Building and improvements | 7 – 30 years | 8,884 | 5,869 | ||||||||||||||
Land | Non depreciable | 1,785 | 1,336 | ||||||||||||||
120,914 | 105,115 | ||||||||||||||||
Less: accumulated depreciation and amortization | (60,554 | ) | (47,768 | ) | |||||||||||||
Property and equipment, net | $ | 60,360 | $ | 57,347 | |||||||||||||
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill attributable to each reporting unit with goodwill balances during the years ended December 31, 2014 and 2013, were as follows (in thousands): | ||||||||||||||||
Americas | EMEA | Asia/Pacific | Total | ||||||||||||||
Gross Balance prior to December 31, 2012 | $ | 316,222 | $ | 158,653 | $ | 73,698 | $ | 548,573 | |||||||||
Total impairment prior to December 31, 2012 | (47,432 | ) | — | — | (47,432 | ) | |||||||||||
Balance, December 31, 2012 | 268,790 | 158,653 | 73,698 | 501,141 | |||||||||||||
Goodwill from acquisitions (1) | 173,101 | — | (832 | ) | 172,269 | ||||||||||||
Foreign currency translation adjustments | (625 | ) | 1,505 | (5,073 | ) | (4,193 | ) | ||||||||||
Balance, December 31, 2013 | 441,266 | 160,158 | 67,793 | 669,217 | |||||||||||||
Goodwill from acquisitions (2) | 36,623 | 84,515 | — | 121,138 | |||||||||||||
Foreign currency translation adjustments | (1,407 | ) | (4,370 | ) | (3,415 | ) | (9,192 | ) | |||||||||
Balance, December 31, 2014 | $ | 476,482 | $ | 240,303 | $ | 64,378 | $ | 781,163 | |||||||||
-1 | Addition relates to the goodwill acquired in the acquisitions of OPAY, ORCC, PTESA and Distra as discussed in Note 2, Acquisitions. | ||||||||||||||||
-2 | Goodwill from acquisitions relates to the goodwill recorded for the acquisition of ReD, as well as adjustments to goodwill related to the acquisitions of OPAY, ORCC, and PTESA as discussed in Note 2. The purchase price allocation for ReD is preliminary as of December 31, 2014 and accordingly is subject to future changes during the maximum one-year measurement period. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Pro Forma Results of Combined Company Operations | The pro forma financial information in the table below presents the combined results of operations for the Company, OPAY and ORCC as if the acquisitions had occurred January 1, 2012 and S1 as if the acquisition had occurred on January 1, 2011 (in thousands, except per share data). The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transactions been in effect for the periods presented. This pro forma information is not intended to represent or be indicative of actual results had the acquisition occurred as of the beginning of each period, nor is it necessarily indicative of future results and does not reflect potential synergies, integration costs, or other such costs or savings. Certain pro forma adjustments have been made to net income for the years ended December 31, 2013 and 2012 to give effect to estimated adjustments to expenses to remove the amortization on eliminated OPAY, ORCC and S1 historical identifiable intangible assets and added amortization expense for the value of identified intangibles acquired in the acquisitions (primarily acquired software, customer relationships, trade names, and covenants not to compete), adjustments to interest expense to reflect the elimination of preexisting OPAY, ORCC and S1 debt and added estimated interest expense on the Company’s additional Term Credit Facility and Revolving Credit Facility borrowings and to eliminate share-based compensation expense for eliminated positions. Additionally, certain transaction expenses that are a direct result of the acquisitions have been excluded from the years ended December 31, 2013 and 2012. | ||||||||||||||
Pro Forma Results of Operations for | |||||||||||||||
the Year Ended December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Total Revenues | $ | 1,027,422 | $ | 1,017,681 | |||||||||||
Net Income | 78,002 | 64,443 | |||||||||||||
Income per share | |||||||||||||||
Basic | $ | 0.66 | $ | 0.56 | |||||||||||
Diluted | $ | 0.65 | $ | 0.54 | |||||||||||
Retail Decisions [Member] | |||||||||||||||
Preliminary Purchase Price Allocation | In connection with the acquisition, the Company recorded the following amounts based upon its purchase price allocation as of December 31, 2014. The purchase price allocation for ReD is considered preliminary and is subject to completion of valuations and other analyses. | ||||||||||||||
(in thousands, except weighted average useful lives) | Weighted-Average | Retail | |||||||||||||
Useful | Decisions | ||||||||||||||
Lives | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 795 | |||||||||||||
Billed and accrued receivables, net | 10,126 | ||||||||||||||
Deferred income taxes, net | 250 | ||||||||||||||
Other current assets | 9,932 | ||||||||||||||
Total current assets acquired | 21,103 | ||||||||||||||
Noncurrent assets: | |||||||||||||||
Property and equipment | 3,354 | ||||||||||||||
Goodwill | 135,643 | ||||||||||||||
Software | 5-7 years | 33,136 | |||||||||||||
Customer relationships | 18 years | 50,480 | |||||||||||||
Trademarks | 5 years | 3,980 | |||||||||||||
Deferred income taxes | 1,622 | ||||||||||||||
Other noncurrent assets | 416 | ||||||||||||||
Total assets acquired | 249,734 | ||||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | 4,624 | ||||||||||||||
Employee compensation | 7,289 | ||||||||||||||
Other current liabilities | 6,168 | ||||||||||||||
Total current liabilities acquired | 18,081 | ||||||||||||||
Noncurrent liabilities: | |||||||||||||||
Deferred income taxes | 26,404 | ||||||||||||||
Other noncurrent liabilities | 164 | ||||||||||||||
Total liabilities acquired | 44,649 | ||||||||||||||
Net assets acquired | $ | 205,085 | |||||||||||||
Fiscal 2013 Acquisitions | |||||||||||||||
Preliminary Purchase Price Allocation | In connection with the 2013 acquisitions, the Company recorded the following amounts based upon its purchase price allocations as of December 31, 2014 (in thousands, except weighted-average useful lives): | ||||||||||||||
Weighted-Average | Official | Online | PTESA | ||||||||||||
Useful | Payments | Resourses | |||||||||||||
Lives | Holdings, | Corporation | |||||||||||||
Inc. | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 25,871 | $ | 9,930 | $ | 193 | |||||||||
Billed and accrued receivables, net | 2,858 | 19,394 | 327 | ||||||||||||
Deferred income taxes, net | 4,692 | 11,726 | — | ||||||||||||
Other current assets | 27,642 | 17,643 | 95 | ||||||||||||
Total current assets acquired | 61,063 | 58,693 | 615 | ||||||||||||
Noncurrent assets: | |||||||||||||||
Property and equipment | 6,340 | 7,335 | 6 | ||||||||||||
Goodwill | 29,236 | 122,247 | 7,113 | ||||||||||||
Software | 10 years | 26,125 | 62,215 | — | |||||||||||
Customer relationships | 14 - 15 years | 47,400 | 68,750 | 7,732 | |||||||||||
Trademarks | 3 - 5 years | 3,000 | 3,050 | — | |||||||||||
Other noncurrent assets | 19,178 | 459 | 7 | ||||||||||||
Total assets acquired | 192,342 | 322,749 | 15,473 | ||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | 9,414 | 15,394 | 341 | ||||||||||||
Accrued employee compensation | 15,006 | 10,549 | 261 | ||||||||||||
Note payable | — | 7,500 | — | ||||||||||||
Other current liabilities | 27,312 | 7,559 | — | ||||||||||||
Total current liabilities acquired | 51,732 | 41,002 | 602 | ||||||||||||
Noncurrent liabilities: | |||||||||||||||
Deferred income taxes, net | — | 18,290 | 225 | ||||||||||||
Other noncurrent liabilities acquired | 828 | 3,339 | 439 | ||||||||||||
Total liabilities acquired | 52,560 | 62,631 | 1,266 | ||||||||||||
Net assets acquired | $ | 139,782 | $ | 260,118 | $ | 14,207 | |||||||||
S1 Corporation | |||||||||||||||
Purchase Price of S One Corporation's Common Stock | The purchase price of S1 Corporation’s common stock as of the date of acquisition was comprised of (in thousands): | ||||||||||||||
Amount | |||||||||||||||
Cash payments to S1 shareholders | $ | 365,918 | |||||||||||||
Issuance of ACI common stock | 204,857 | ||||||||||||||
Reissuance of treasury stock | 2,174 | ||||||||||||||
Cash payments for noncompete agreements | 2,778 | ||||||||||||||
S1 shares previously held as available-for-sale securities | 11,557 | ||||||||||||||
Total Purchase Price | $ | 587,284 | |||||||||||||
Two Thousand Twelve Acquisitions | |||||||||||||||
Preliminary Purchase Price Allocation | In connection with the 2012 acquisitions, the Company recorded the following amounts based upon its purchase price allocations during the year ended December 31, 2013 (in thousands, except weighted-average useful lives): | ||||||||||||||
Weighted-Average | S1 | Distra Pty | |||||||||||||
Useful | Corporation | Ltd | |||||||||||||
Lives | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 97,748 | $ | 2 | |||||||||||
Billed and accrued receivables, net | 65,329 | 338 | |||||||||||||
Other current assets | 16,791 | 1,152 | |||||||||||||
Total current assets acquired | 179,868 | 1,492 | |||||||||||||
Noncurrent assets: | |||||||||||||||
Property and equipment | 18,440 | 96 | |||||||||||||
Goodwill | 256,244 | 21,307 | |||||||||||||
Software | 5 - 10 years | 87,517 | 18,802 | ||||||||||||
Customer relationships | 10 - 20 years | 108,690 | 6,200 | ||||||||||||
Trademarks | 3 years | 4,500 | — | ||||||||||||
Covenant not to compete | 3 years | 360 | — | ||||||||||||
Deferred income tax | 40,634 | 12,331 | |||||||||||||
Other noncurrent assets | 11,004 | — | |||||||||||||
Total assets acquired | 707,257 | 60,228 | |||||||||||||
Current liabilities: | |||||||||||||||
Deferred revenue | 34,671 | 320 | |||||||||||||
Accrued employee compensation | 34,689 | 1,205 | |||||||||||||
Other current liabilities | 28,387 | 736 | |||||||||||||
Total current liabilities acquired | 97,747 | 2,261 | |||||||||||||
Noncurrent liabilities: | |||||||||||||||
Deferred income tax | 15,795 | 8,217 | |||||||||||||
Other noncurrent liabilities acquired | 6,431 | — | |||||||||||||
Total liabilities acquired | 119,973 | 10,478 | |||||||||||||
Net assets acquired | $ | 587,284 | $ | 49,750 | |||||||||||
Software_and_Other_Intangible_1
Software and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Carrying Amount and Accumulated Amortization of Other Intangible Assets | The carrying amount and accumulated amortization of the Company’s other intangible assets that were subject to amortization at each balance sheet date are as follows (in thousands): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Balance | Carrying | Amortization | Balance | ||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Customer relationships | $ | 322,216 | $ | (68,616 | ) | $ | 253,600 | $ | 277,356 | $ | (49,410 | ) | $ | 227,946 | |||||||||||
Purchased contracts | 10,768 | (10,768 | ) | — | 10,865 | (10,865 | ) | — | |||||||||||||||||
Trademarks and tradenames | 15,767 | (7,946 | ) | 7,821 | 13,995 | (4,383 | ) | 9,612 | |||||||||||||||||
Covenant not to compete | 433 | (418 | ) | 15 | 438 | (303 | ) | 135 | |||||||||||||||||
$ | 349,184 | $ | (87,748 | ) | $ | 261,436 | $ | 302,654 | $ | (64,961 | ) | $ | 237,693 | ||||||||||||
Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Intangible Assets | Based on capitalized intangible assets at December 31, 2014, and assuming no impairment of these intangible assets, estimated amortization expense amounts in future fiscal years are as follows (in thousands): | ||||||||||||||||||||||||
Fiscal Year Ending December 31, | Software | Other | |||||||||||||||||||||||
Amortization | Intangible | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
2015 | $ | 42,379 | $ | 22,863 | |||||||||||||||||||||
2016 | 37,138 | 21,728 | |||||||||||||||||||||||
2017 | 30,993 | 20,225 | |||||||||||||||||||||||
2018 | 25,764 | 19,716 | |||||||||||||||||||||||
2019 | 23,054 | 19,110 | |||||||||||||||||||||||
Thereafter | 50,179 | 157,794 | |||||||||||||||||||||||
Total | $ | 209,507 | $ | 261,436 | |||||||||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Maturities on Long-Term Debt Outstanding | Maturities on long-term debt outstanding at December 31, 2014 are as follows (amounts in thousands): | ||||||||
Fiscal year ending December 31, | |||||||||
2015 | $ | 87,352 | |||||||
2016 | 95,293 | ||||||||
2017 | 95,293 | ||||||||
2018 | 313,997 | ||||||||
2019 | — | ||||||||
Thereafter | 300,000 | ||||||||
Total | $ | 891,935 | |||||||
Carrying Value of Senior Notes | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Term credit facility | $ | 547,935 | $ | 455,383 | |||||
Revolving credit facility | 44,000 | — | |||||||
6.375% Senior Notes, due August 2020 | 300,000 | 300,000 | |||||||
Total debt | 891,935 | 755,383 | |||||||
Less current portion of term credit facility | 87,352 | 47,313 | |||||||
Total long-term debt | $ | 804,583 | $ | 708,070 | |||||
Corporate_Restructuring_and_Ot1
Corporate Restructuring and Other Organizational Changes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Components of Corporate Restructuring and Other Reorganization Activities from Recent Acquisitions | The components of corporate restructuring and other reorganization activities from the recent acquisitions are included in the following table (in thousands): | ||||||||||||
Severance | Facility | Total | |||||||||||
Closures | |||||||||||||
Balance, December 31, 2012 | $ | 618 | $ | 1,296 | $ | 1,914 | |||||||
Restructuring charges incurred, net | 8,885 | — | 8,885 | ||||||||||
Unfavorable lease liability | — | 1,708 | 1,708 | ||||||||||
Amounts paid during the period | (7,996 | ) | (1,091 | ) | (9,087 | ) | |||||||
Foreign currency translation adjustments | (37 | ) | (42 | ) | (79 | ) | |||||||
Balance, December 31, 2013 | 1,470 | 1,871 | 3,341 | ||||||||||
Restructuring charges (adjustments) incurred, net | 8,671 | (136 | ) | 8,535 | |||||||||
Amounts paid during the period | (7,741 | ) | (1,283 | ) | (9,024 | ) | |||||||
Foreign currency translation adjustments | (59 | ) | — | (59 | ) | ||||||||
Balance, December 31, 2014 | $ | 2,341 | $ | 452 | $ | 2,793 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Reconciliation of Average Share Amounts used to Compute Both Basic and Diluted Earnings (Loss) Per Share | The following table reconciles the average share amounts used to compute both basic and diluted earnings per share (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average shares outstanding: | |||||||||||||
Basic weighted average shares outstanding | 114,798 | 117,885 | 116,089 | ||||||||||
Add: Dilutive effect of stock options, restricted stock awards and other dilutive securities | 1,973 | 2,169 | 3,627 | ||||||||||
Diluted weighted average shares outstanding | 116,771 | 120,054 | 119,716 | ||||||||||
Other_net_Tables
Other, net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other, Net | Other, net is comprised of the following items (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Foreign currency transaction losses | $ | (67 | ) | $ | (2,697 | ) | $ | (750 | ) | ||||
Realized gain on available-for-sale securities | — | — | 1,557 | ||||||||||
Other | (173 | ) | (630 | ) | (408 | ) | |||||||
Total | $ | (240 | ) | $ | (3,327 | ) | $ | 399 | |||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Selected Segment Financial Data, Revenues and Income (Loss) Before Income Taxes | The following is selected segment financial data for the periods indicated (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues: | |||||||||||||
Americas – United States | $ | 614,488 | $ | 450,251 | $ | 277,775 | |||||||
Americas – Other | 87,279 | 91,639 | 74,422 | ||||||||||
EMEA | 230,879 | 228,679 | 218,015 | ||||||||||
Asia/Pacific | 83,503 | 94,359 | 96,367 | ||||||||||
$ | 1,016,149 | $ | 864,928 | $ | 666,579 | ||||||||
Depreciation and amortization expense: | |||||||||||||
Americas | $ | 20,548 | $ | 17,030 | $ | 10,917 | |||||||
EMEA | 4,126 | 6,310 | 5,175 | ||||||||||
Asia/Pacific | 1,809 | 2,574 | 3,075 | ||||||||||
Corporate | 60,200 | 44,053 | 31,614 | ||||||||||
$ | 86,683 | $ | 69,967 | $ | 50,781 | ||||||||
Stock-based compensation expense: | |||||||||||||
Americas | $ | 2,910 | $ | 2,392 | $ | 256 | |||||||
EMEA | 419 | 759 | 439 | ||||||||||
Asia/Pacific | 249 | 293 | 314 | ||||||||||
Corporate | 7,467 | 10,128 | 14,177 | ||||||||||
$ | 11,045 | $ | 13,572 | $ | 15,186 | ||||||||
Income (loss) before taxes: | |||||||||||||
Americas | $ | 143,379 | $ | 145,496 | $ | 103,165 | |||||||
EMEA | 116,120 | 87,522 | 78,848 | ||||||||||
Asia/Pacific | 38,853 | 33,923 | 32,673 | ||||||||||
Corporate | (199,583 | ) | (173,782 | ) | (149,418 | ) | |||||||
$ | 98,769 | $ | 93,159 | $ | 65,268 | ||||||||
Selected Segment Financial Data, Assets | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Long lived assets: | |||||||||||||
Americas – United States | $ | 929,459 | $ | 832,169 | |||||||||
Americas – Other | 15,337 | 18,708 | |||||||||||
EMEA | 360,033 | 262,906 | |||||||||||
Asia/Pacific | 77,416 | 82,854 | |||||||||||
$ | 1,382,245 | $ | 1,196,637 | ||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Total assets: | |||||||||||||
Americas – United States | $ | 1,210,674 | $ | 1,129,064 | |||||||||
Americas – Other | 32,594 | 39,995 | |||||||||||
EMEA | 487,629 | 380,320 | |||||||||||
Asia/Pacific | 119,803 | 132,472 | |||||||||||
$ | 1,850,700 | $ | 1,681,851 | ||||||||||
Revenues, by Product Line | Following are revenues, by product and services (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Retail payments processing | $ | 406,023 | $ | 410,200 | $ | 372,942 | |||||||
Billers | 235,039 | 101,981 | — | ||||||||||
Online banking and community financial services | 227,659 | 223,902 | 169,652 | ||||||||||
Tools and infrastructure | 40,427 | 38,241 | 37,145 | ||||||||||
Wholesale banking payments | 37,879 | 35,396 | 39,717 | ||||||||||
Payment fraud management | 36,235 | 37,136 | 25,160 | ||||||||||
Card and merchant management | 32,887 | 18,072 | 21,963 | ||||||||||
Total | $ | 1,016,149 | $ | 864,928 | $ | 666,579 | |||||||
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Stock Options Issued Pursuant to Stock Incentive Plans | A summary of stock options issued under the various Stock Incentive Plans previously described and changes is as follows: | ||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value of | |||||||||||||||
Price ($) | Contractual | In-the-Money | |||||||||||||||
Term | Options ($) | ||||||||||||||||
(Years) | |||||||||||||||||
Outstanding, December 31, 2011 | 10,470,168 | $ | 7.76 | ||||||||||||||
Granted | 1,306,101 | 14.14 | |||||||||||||||
Exercised | (2,541,903 | ) | 6.58 | ||||||||||||||
Forfeited | (316,620 | ) | 7.4 | ||||||||||||||
Expired | (12,000 | ) | 3.4 | ||||||||||||||
Outstanding, December 31, 2012 | 8,905,746 | 9.05 | |||||||||||||||
Granted | 1,208,019 | 19.3 | |||||||||||||||
Exercised | (2,478,183 | ) | 7.81 | ||||||||||||||
Forfeited | (225,474 | ) | 12.79 | ||||||||||||||
Expired | (1,287 | ) | 9.65 | ||||||||||||||
Outstanding, December 31, 2013 | 7,408,821 | 11.02 | |||||||||||||||
Granted | 27,132 | 20.13 | |||||||||||||||
Exercised | (2,036,558 | ) | 8.08 | ||||||||||||||
Forfeited | (116,702 | ) | 17.8 | ||||||||||||||
Outstanding, December 31, 2014 | 5,282,693 | $ | 12.06 | 5.72 | $ | 43,191,137 | |||||||||||
Exercisable, December 31, 2014 | 4,325,851 | $ | 10.66 | 5.08 | $ | 41,247,183 | |||||||||||
Estimated Fair Value of Options Granted using Black-Scholes Option-Pricing Model with Weighted-Average Assumptions | The fair value of options granted in the respective fiscal years was estimated on the date of grant using the Black-Scholes option-pricing model, acceptable under ASC 718, with the following weighted-average assumptions: | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected life (years) | 5.9 | 6.2 | 6.2 | ||||||||||||||
Risk-free interest rate | 1.8 | % | 1.6 | % | 0.8 | % | |||||||||||
Expected volatility | 45.2 | % | 46 | % | 51.4 | % | |||||||||||
Expected dividend yield | — | — | — | ||||||||||||||
Summary of Nonvested Long-Term Incentive Program Performance Share Awards Outstanding and Changes During Period | A summary of the nonvested LTIP Performance Shares is as follows: | ||||||||||||||||
Nonvested LTIP Performance Shares | Number of | Weighted- | |||||||||||||||
Shares at | Average | ||||||||||||||||
Expected | Grant | ||||||||||||||||
Attainment | Date Fair | ||||||||||||||||
Value | |||||||||||||||||
Nonvested at December 31, 2011 | 2,794,713 | $ | 7.78 | ||||||||||||||
Granted | 820,785 | 14.22 | |||||||||||||||
Forfeited | (311,046 | ) | 7.71 | ||||||||||||||
Nonvested at December 31, 2012 | 3,304,452 | 9.38 | |||||||||||||||
Granted | 798,306 | 20.3 | |||||||||||||||
Vested | (982,728 | ) | 5.61 | ||||||||||||||
Forfeited | (188,511 | ) | 12.33 | ||||||||||||||
Change in expected attainment for 2010 grants | (212,943 | ) | 8.88 | ||||||||||||||
Nonvested at December 31, 2013 | 2,718,576 | 13.78 | |||||||||||||||
Granted | 19,065 | 20.13 | |||||||||||||||
Vested | (635,643 | ) | 8.88 | ||||||||||||||
Forfeited | (111,599 | ) | 16.43 | ||||||||||||||
Change in expected attainment for 2012 and 2013 grants | (844,483 | ) | 15.86 | ||||||||||||||
Nonvested at December 31, 2014 | 1,145,916 | $ | 14.84 | ||||||||||||||
Summary of Nonvested Restricted Share Awards and Changes During Period | A summary of nonvested RSAs are as follows: | ||||||||||||||||
Nonvested Restricted Share Awards | Restricted | Grant Date | |||||||||||||||
Share Awards | Fair Value | ||||||||||||||||
Nonvested at December 31, 2011 | 300,069 | $ | 6.43 | ||||||||||||||
Granted | 169,167 | 14.94 | |||||||||||||||
Vested | (237,897 | ) | 6.24 | ||||||||||||||
Forfeited | (23,625 | ) | 5.59 | ||||||||||||||
Nonvested at December 31, 2012 | 207,714 | 13.67 | |||||||||||||||
Granted | 25,989 | 16.1 | |||||||||||||||
Vested | (88,638 | ) | 12.35 | ||||||||||||||
Nonvested at December 31, 2013 | 145,065 | 14.91 | |||||||||||||||
Granted | 106,275 | 18.57 | |||||||||||||||
Vested | (66,670 | ) | 14.59 | ||||||||||||||
Forfeited | (1,461 | ) | 20.51 | ||||||||||||||
Nonvested at December 31, 2014 | 183,209 | $ | 17.11 | ||||||||||||||
Online Resources Corporation | |||||||||||||||||
Summary of Stock Options Issued Pursuant to Stock Incentive Plans | A summary of transaction stock options issued pursuant to the Company’s stock incentive plans is as follows: | ||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic Value of | ||||||||||||||
Exercise | Remaining | In-the-Money | |||||||||||||||
Price | Contractual | Options | |||||||||||||||
Term (Years) | |||||||||||||||||
Outstanding as of December 31, 2012 | — | $ | — | ||||||||||||||
Transaction stock options converted upon acquisition of ORCC | 112,404 | 30.64 | |||||||||||||||
Exercised | (15,501 | ) | 13.92 | ||||||||||||||
Cancelled | (34,458 | ) | 30.21 | ||||||||||||||
Outstanding as of December 31, 2013 | 62,445 | 35.03 | |||||||||||||||
Exercised | (909 | ) | 13.92 | ||||||||||||||
Cancelled | (15,024 | ) | 31.03 | ||||||||||||||
Outstanding as of December 31, 2014 | 46,512 | $ | 36.73 | 1.61 | $ | 43,444 | |||||||||||
Exercisable as of December 31, 2014 | 46,512 | $ | 36.73 | 1.61 | $ | 43,444 | |||||||||||
S1 2003 Stock Incentive Plan | |||||||||||||||||
Summary of Nonvested Restricted Share Awards and Changes During Period | A summary of nonvested Transaction RSAs issued under the S1 2003 Stock Incentive Plan as of December 31, 2014 and changes during the period are as follows: | ||||||||||||||||
Nonvested Transaction Restricted Share Awards | Number of | Weighted-Average Grant | |||||||||||||||
Restricted | Date Fair Value | ||||||||||||||||
Share Awards | |||||||||||||||||
Nonvested as of December 31, 2011 | — | $ | — | ||||||||||||||
Transaction RSAs converted upon acquisition of S1 | 510,615 | 11.8 | |||||||||||||||
Vested | (302,055 | ) | 11.8 | ||||||||||||||
Forfeited | (57,828 | ) | 11.8 | ||||||||||||||
Nonvested as of December 31, 2012 | 150,732 | 11.8 | |||||||||||||||
Vested | (35,598 | ) | 11.8 | ||||||||||||||
Forfeited | (57,582 | ) | 11.8 | ||||||||||||||
Nonvested as of December 31, 2013 | 57,552 | 11.8 | |||||||||||||||
Vested | (19,822 | ) | 11.8 | ||||||||||||||
Forfeited | (20,165 | ) | 11.8 | ||||||||||||||
Nonvested as of December 31, 2014 | 17,565 | $ | 11.8 | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of Income Before Income Taxes | For financial reporting purposes, income before income taxes includes the following components (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 47,963 | $ | 47,640 | $ | (4,192 | ) | ||||||
Foreign | 50,806 | 45,519 | 69,460 | ||||||||||
Total | $ | 98,769 | $ | 93,159 | $ | 65,268 | |||||||
Income Tax Expense (Benefit) | The expense (benefit) for income taxes consists of the following (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal | |||||||||||||
Current | $ | 7,895 | $ | 7,509 | $ | 1,236 | |||||||
Deferred | 7,021 | 9,491 | 56 | ||||||||||
Total | 14,916 | 17,000 | 1,292 | ||||||||||
State | |||||||||||||
Current | 1,542 | 2,492 | 1,150 | ||||||||||
Deferred | (2,397 | ) | (1,687 | ) | (142 | ) | |||||||
Total | (855 | ) | 805 | 1,008 | |||||||||
Foreign | |||||||||||||
Current | 13,335 | 9,717 | 9,258 | ||||||||||
Deferred | 3,813 | 1,769 | 4,864 | ||||||||||
Total | 17,148 | 11,486 | 14,122 | ||||||||||
Total | $ | 31,209 | $ | 29,291 | $ | 16,422 | |||||||
Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Income | Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of income are summarized as follows (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax expense at federal rate of 35% | $ | 34,569 | $ | 32,606 | $ | 22,844 | |||||||
State income taxes, net of federal benefit | (544 | ) | 675 | 655 | |||||||||
Change in valuation allowance | 3,521 | (1,615 | ) | (2,680 | ) | ||||||||
Foreign tax rate differential | (5,508 | ) | (4,650 | ) | (8,940 | ) | |||||||
Unrecognized tax benefit increase (decrease) | 65 | 488 | (1,665 | ) | |||||||||
Tax effect of foreign operations | (104 | ) | 5,906 | 5,311 | |||||||||
Acquisition Costs | 289 | 896 | 2,659 | ||||||||||
Tax benefit of research & development | (3,446 | ) | (4,001 | ) | (1,749 | ) | |||||||
Other | 2,367 | (1,014 | ) | (13 | ) | ||||||||
Income tax provision | $ | 31,209 | $ | 29,291 | $ | 16,422 | |||||||
Deferred Tax Assets and Liabilities Result from Differences in Timing of Recognition of Certain Income and Expense Items for Tax and Financial Accounting Purposes | The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 150,004 | $ | 148,499 | |||||||||
Tax credits | 43,804 | 32,231 | |||||||||||
Compensation | 24,486 | 24,902 | |||||||||||
Deferred revenue | 13,486 | 10,564 | |||||||||||
Tax basis in investments | 5,601 | 15,536 | |||||||||||
Other | 9,712 | 10,153 | |||||||||||
Gross deferred income tax assets | 247,093 | 241,885 | |||||||||||
Less: valuation allowance | (36,174 | ) | (39,749 | ) | |||||||||
Net deferred income tax assets | $ | 210,919 | $ | 202,136 | |||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | $ | (129,825 | ) | $ | (117,444 | ) | |||||||
Total deferred income tax liabilities | (129,825 | ) | (117,444 | ) | |||||||||
Net deferred income taxes | $ | 81,094 | $ | 84,692 | |||||||||
Deferred income taxes / liabilities included in the balance sheet are: | |||||||||||||
Deferred income tax asset – current | $ | 44,349 | $ | 47,593 | |||||||||
Deferred income tax asset – noncurrent | 50,187 | 48,852 | |||||||||||
Deferred income tax liability – current | (225 | ) | (753 | ) | |||||||||
Deferred income tax liability – noncurrent | (13,217 | ) | (11,000 | ) | |||||||||
Net deferred income taxes | $ | 81,094 | $ | 84,692 | |||||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance of unrecognized tax benefits at beginning of year | $ | 14,996 | $ | 13,079 | $ | 4,012 | |||||||
Increases for tax positions of prior years | 84 | 1,560 | 10,729 | ||||||||||
Decreases for tax positions of prior years | (412 | ) | (327 | ) | (4 | ) | |||||||
Increases for tax positions established for the current period | 491 | 1,739 | 49 | ||||||||||
Decreases for settlements with taxing authorities | — | (61 | ) | (27 | ) | ||||||||
Reductions resulting from lapse of applicable statute of limitation | (239 | ) | (901 | ) | (1,697 | ) | |||||||
Adjustment resulting from foreign currency translation | (140 | ) | (93 | ) | 17 | ||||||||
Balance of unrecognized tax benefits at end of year | $ | 14,780 | $ | 14,996 | $ | 13,079 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Aggregate Minimum Operating Lease Payments | Aggregate minimum operating lease payments under these agreements in future fiscal years are as follows (in thousands): | ||||
Fiscal Year Ending December 31, | Operating | ||||
Leases | |||||
2015 | $ | 17,315 | |||
2016 | 15,959 | ||||
2017 | 12,376 | ||||
2018 | 10,716 | ||||
2019 | 9,050 | ||||
Thereafter | 28,234 | ||||
Total minimum lease payments | $ | 93,650 | |||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Activity within Accumulated Other Comprehensive Loss | Activity within accumulated other comprehensive loss for the three years ended December 31, 2014, 2013, and 2012 were as follows: | ||||||||||||
Unrealized gain on | Foreign | Accumulated other | |||||||||||
available-for-sale | currency | comprehensive loss | |||||||||||
securities | translation | ||||||||||||
Balance at December 31, 2011 | $ | 594 | $ | (17,855 | ) | $ | (17,261 | ) | |||||
Other comprehensive income | 963 | 3,824 | 4,787 | ||||||||||
Reclassification of unrealized gain to a realized gain on available-for-sale securities | (1,557 | ) | — | (1,557 | ) | ||||||||
Balance at December 31, 2012 | — | (14,031 | ) | (14,031 | ) | ||||||||
Other comprehensive loss | — | (9,284 | ) | (9,284 | ) | ||||||||
Balance at December 31, 2013 | — | (23,315 | ) | (23,315 | ) | ||||||||
Other comprehensive income (loss) | 22,977 | (19,545 | ) | 3,432 | |||||||||
Balance at December 31, 2014 | $ | 22,977 | $ | (42,860 | ) | $ | (19,883 | ) | |||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Quarterly Financial Data | |||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||
Revenues: | |||||||||||||||||||||
License | $ | 35,702 | $ | 61,377 | $ | 57,653 | $ | 80,425 | $ | 235,157 | |||||||||||
Maintenance | 62,499 | 62,309 | 63,764 | 67,421 | 255,993 | ||||||||||||||||
Services | 22,588 | 24,991 | 28,194 | 29,811 | 105,584 | ||||||||||||||||
Hosting | 100,684 | 106,131 | 100,033 | 112,567 | 419,415 | ||||||||||||||||
Total revenues | 221,473 | 254,808 | 249,644 | 290,224 | 1,016,149 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of license (1) | 5,736 | 6,897 | 5,433 | 6,499 | 24,565 | ||||||||||||||||
Cost of maintenance, services and hosting (1) | 107,887 | 112,595 | 105,319 | 104,390 | 430,191 | ||||||||||||||||
Research and development | 37,456 | 38,876 | 36,321 | 31,554 | 144,207 | ||||||||||||||||
Selling and marketing | 27,909 | 28,007 | 27,078 | 29,053 | 112,047 | ||||||||||||||||
General and administrative | 25,116 | 24,682 | 25,329 | 19,938 | 95,065 | ||||||||||||||||
Depreciation and amortization | 17,078 | 17,010 | 18,295 | 19,519 | 71,902 | ||||||||||||||||
Total operating expenses | 221,182 | 228,067 | 217,775 | 210,953 | 877,977 | ||||||||||||||||
Operating income | 291 | 26,741 | 31,869 | 79,271 | 138,172 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest expense | (9,175 | ) | (9,329 | ) | (10,416 | ) | (10,818 | ) | (39,738 | ) | |||||||||||
Interest income | 199 | 135 | 98 | 143 | 575 | ||||||||||||||||
Other, net | (1,057 | ) | (3,901 | ) | 3,614 | 1,104 | (240 | ) | |||||||||||||
Total other income (expense) | (10,033 | ) | (13,095 | ) | (6,704 | ) | (9,571 | ) | (39,403 | ) | |||||||||||
Income (loss) before income taxes | (9,742 | ) | 13,646 | 25,165 | 69,700 | 98,769 | |||||||||||||||
Income tax expense (benefit) | (3,967 | ) | 2,409 | 9,433 | 23,334 | 31,209 | |||||||||||||||
Net income (loss) | $ | (5,775 | ) | $ | 11,237 | $ | 15,732 | $ | 46,366 | $ | 67,560 | ||||||||||
Earnings (loss) per share | |||||||||||||||||||||
Basic | $ | (0.05 | ) | $ | 0.1 | $ | 0.14 | $ | 0.4 | $ | 0.59 | ||||||||||
Diluted | $ | (0.05 | ) | $ | 0.1 | $ | 0.14 | $ | 0.4 | $ | 0.58 | ||||||||||
-1 | The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charges for depreciation. | ||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||||
(in thousands, except per share amounts) | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||
Revenues: | |||||||||||||||||||||
License | $ | 41,356 | $ | 53,714 | $ | 56,236 | $ | 82,625 | $ | 233,931 | |||||||||||
Maintenance | 58,634 | 57,830 | 60,457 | 69,033 | 245,954 | ||||||||||||||||
Services | 23,929 | 26,964 | 30,240 | 40,952 | 122,085 | ||||||||||||||||
Hosting | 38,078 | 67,322 | 67,006 | 90,552 | 262,958 | ||||||||||||||||
Total revenues | 161,997 | 205,830 | 213,939 | 283,162 | 864,928 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of license (1) | 5,918 | 6,169 | 5,888 | 7,349 | 25,324 | ||||||||||||||||
Cost of maintenance, services and hosting (1) | 61,871 | 82,573 | 80,948 | 93,123 | 318,515 | ||||||||||||||||
Research and development | 37,149 | 38,391 | 33,642 | 33,375 | 142,557 | ||||||||||||||||
Selling and marketing | 25,074 | 27,538 | 24,098 | 23,118 | 99,828 | ||||||||||||||||
General and administrative | 25,037 | 26,147 | 24,559 | 23,557 | 99,300 | ||||||||||||||||
Depreciation and amortization | 10,957 | 13,490 | 15,249 | 16,660 | 56,356 | ||||||||||||||||
Total operating expenses | 166,006 | 194,308 | 184,384 | 197,182 | 741,880 | ||||||||||||||||
Operating income (loss) | (4,009 | ) | 11,522 | 29,555 | 85,980 | 123,048 | |||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest expense | (3,897 | ) | (6,053 | ) | (7,453 | ) | (9,818 | ) | (27,221 | ) | |||||||||||
Interest income | 131 | 211 | 159 | 158 | 659 | ||||||||||||||||
Other, net | 3,165 | (1,519 | ) | (3,152 | ) | (1,821 | ) | (3,327 | ) | ||||||||||||
Total other income (expense) | (601 | ) | (7,361 | ) | (10,446 | ) | (11,481 | ) | (29,889 | ) | |||||||||||
Income (loss) before income taxes | (4,610 | ) | 4,161 | 19,109 | 74,499 | 93,159 | |||||||||||||||
Income tax expense (benefit) | (2,444 | ) | 2,280 | 5,347 | 24,108 | 29,291 | |||||||||||||||
Net income (loss) | $ | (2,166 | ) | $ | 1,881 | $ | 13,762 | $ | 50,391 | $ | 63,868 | ||||||||||
Earnings (loss) per share | |||||||||||||||||||||
Basic (2) (3) | $ | (0.02 | ) | $ | 0.02 | $ | 0.12 | $ | 0.43 | $ | 0.54 | ||||||||||
Diluted (2) (3) | $ | (0.02 | ) | $ | 0.02 | $ | 0.12 | $ | 0.43 | $ | 0.53 | ||||||||||
-1 | The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charges for depreciation. | ||||||||||||||||||||
-2 | The sum of the earnings per share by quarter does not agree to the earnings per share for the year ended December 31, 2013 due to rounding. | ||||||||||||||||||||
-3 | Earnings (loss) per share balances by quarter have been retroactively adjusted for the three-for-one stock split approved on July 10, 2014. |
Nature_of_Business_and_Summary3
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Apr. 10, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Common stock, par value | $0.01 | $0.01 | $0.01 |
Description of Stock split | Three-for-one | On April 10, 2014, the Company announced that its Board of Directors approved a three-for-one stock split of the Company's common stock, which was affected in the form of a common stock dividend distributed on July 10, 2014. | |
Payments for partnership dissolved | $1,391,000 | ||
Percentage of receivables | No customer accounted for more than 10% of the Company's consolidated receivables balance as of December 31, 2014 or 2013. | No customer accounted for more than 10% of the Company's consolidated receivables balance as of December 31, 2014 or 2013. | |
Amount of off balance sheet settlement funds | 224,900,000 | 284,000,000 | |
Goodwill measurement period | 1 year | ||
Cornastone Technology Investments (Proprietary) Limited | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Payments for partnership dissolved | 1,500,000 | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Minimum | Software Acquired or Developed for Internal Use | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 20 years | ||
Maximum | Software Acquired or Developed for Internal Use | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 10 years | ||
Other Noncurrent Liabilities | Cornastone Technology Investments (Proprietary) Limited | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Noncontrolling interest | $1,100,000 |
Revenues_in_Condensed_Consolid
Revenues in Condensed Consolidated Statements of Operations from Arrangements for which Vendor-Specific Objective Evidence of Fair Value Does Not Exist for Each Undelivered Element (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue Recognition, Milestone Method [Line Items] | |||||||||||
License | $80,425 | $57,653 | $61,377 | $35,702 | $82,625 | $56,236 | $53,714 | $41,356 | $235,157 | $233,931 | $221,846 |
Maintenance | 67,421 | 63,764 | 62,309 | 62,499 | 69,033 | 60,457 | 57,830 | 58,634 | 255,993 | 245,954 | 199,876 |
Services | 29,811 | 28,194 | 24,991 | 22,588 | 40,952 | 30,240 | 26,964 | 23,929 | 105,584 | 122,085 | 131,536 |
Total revenues | 290,224 | 249,644 | 254,808 | 221,473 | 283,162 | 213,939 | 205,830 | 161,997 | 1,016,149 | 864,928 | 666,579 |
Vendor Specific Objective Evidence of Fair Value | |||||||||||
Revenue Recognition, Milestone Method [Line Items] | |||||||||||
License | 22,211 | 22,190 | 38,226 | ||||||||
Maintenance | 7,699 | 9,649 | 14,178 | ||||||||
Services | 13 | 10 | 830 | ||||||||
Total revenues | $29,923 | $31,849 | $53,234 |
Receivables_and_Concentration_
Receivables and Concentration of Credit Risk (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Accounting Policies [Abstract] | ||||
Billed Receivables | $200,392 | $173,100 | ||
Allowance for doubtful accounts | -4,806 | -4,459 | -8,117 | -4,843 |
Billed, net | 195,586 | 168,641 | ||
Accrued Receivables | 31,520 | 34,934 | ||
Receivables, net | $227,106 | $203,575 |
Activity_in_Allowance_for_Doub
Activity in Allowance for Doubtful Accounts Receivable (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation and Qualifying Accounts [Abstract] | |||
Balance, beginning of period | ($4,459) | ($8,117) | ($4,843) |
Provision (increase) decrease | -1,049 | 1,161 | -3,173 |
Amounts written off, net of recoveries | 1,053 | 2,296 | 35 |
Foreign currency translation adjustments and other | -351 | 201 | -136 |
Balance, end of period | ($4,806) | ($4,459) | ($8,117) |
Components_of_Other_Current_As
Components of Other Current Assets and Other Current Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Current debt issuance costs | $6,244 | $5,276 |
Other | 9,889 | 12,163 |
Total other current assets | 40,417 | 65,328 |
Settlement payables | 21,715 | 42,841 |
Accrued interest | 7,256 | 7,074 |
Vendor financed licenses | 7,340 | 6,410 |
Royalties payable | 4,070 | 5,627 |
Other | 27,124 | 33,064 |
Total other current liabilities | 67,505 | 95,016 |
Settlement deposits | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Other assets settlement | 13,252 | 27,770 |
Settlement receivables | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Other assets settlement | $11,032 | $20,119 |
Net_Property_and_Equipment_Det
Net Property and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $120,914 | $105,115 |
Less: accumulated depreciation and amortization | -60,554 | -47,768 |
Property and equipment, net | 60,360 | 57,347 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 81,850 | 72,163 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | Lesser of useful life of improvement or remaining life of lease | |
Property and equipment, gross | 17,193 | 15,210 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | 7 years | |
Property and equipment, gross | 11,202 | 10,537 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,884 | 5,869 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | Non depreciable | |
Property and equipment, gross | $1,785 | $1,336 |
Minimum | Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | 3 years | |
Minimum | Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | 7 years | |
Maximum | Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | 5 years | |
Maximum | Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | 30 years |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Goodwill [Line Items] | ||||||
Goodwill from acquisitions | $121,138 | [1] | $172,269 | [2] | ||
Gross Balance prior to the end of year | 548,573 | |||||
Foreign currency translation adjustments | -9,192 | -4,193 | ||||
Total impairment, beginning of period | -47,432 | |||||
Ending Balance | 781,163 | 669,217 | 501,141 | |||
Beginning Balance | 669,217 | 501,141 | ||||
Americas | ||||||
Goodwill [Line Items] | ||||||
Goodwill from acquisitions | 36,623 | [1] | 173,101 | [2] | ||
Gross Balance prior to the end of year | 316,222 | |||||
Foreign currency translation adjustments | -1,407 | -625 | ||||
Total impairment, beginning of period | -47,432 | |||||
Ending Balance | 476,482 | 441,266 | 268,790 | |||
Beginning Balance | 441,266 | 268,790 | ||||
EMEA | ||||||
Goodwill [Line Items] | ||||||
Goodwill from acquisitions | 84,515 | [1] | ||||
Gross Balance prior to the end of year | 158,653 | |||||
Foreign currency translation adjustments | -4,370 | 1,505 | ||||
Ending Balance | 240,303 | 160,158 | 158,653 | |||
Beginning Balance | 160,158 | 158,653 | ||||
Asia/Pacific | ||||||
Goodwill [Line Items] | ||||||
Goodwill from acquisitions | -832 | [2] | ||||
Gross Balance prior to the end of year | 73,698 | |||||
Foreign currency translation adjustments | -3,415 | -5,073 | ||||
Ending Balance | 64,378 | 67,793 | 73,698 | |||
Beginning Balance | $67,793 | $73,698 | ||||
[1] | Goodwill from acquisitions relates to the goodwill recorded for the acquisitions of ReD, as well as adjustments to goodwill related to the acquisitions of OPAY, ORCC, and PTESA as discussed in Note 2. The purchase price allocation for ReD is preliminary as of December 31, 2014 and accordingly is subject to future changes during the maximum one-year allocation period. | |||||
[2] | Addition relates to the goodwill acquired in the acquisitions of OPAY, ORCC, PTESA and Distra as discussed in Note |
Changes_in_Carrying_Amount_of_1
Changes in Carrying Amount of Goodwill (Parenthetical) (Detail) (Maximum) | 12 Months Ended |
Dec. 31, 2014 | |
Maximum | |
Goodwill [Line Items] | |
Preliminary purchase price allocation period | 1 year |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||
Aug. 12, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 05, 2013 | Mar. 11, 2013 | Sep. 18, 2012 | 24-May-12 | Feb. 13, 2012 | Dec. 31, 2011 | Sep. 18, 2014 | |
Entity | Entity | ||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business acquisition cash paid | $205,100,000 | $641,700,000 | |||||||||||||||||
Additional borrowing | 169,500,000 | 40,000,000 | 119,000,000 | ||||||||||||||||
Acquisition related transaction expenses | 2,700,000 | ||||||||||||||||||
Operating income | 79,271,000 | 31,869,000 | 26,741,000 | 291,000 | 85,980,000 | 29,555,000 | 11,522,000 | -4,009,000 | 138,172,000 | 123,048,000 | 74,372,000 | ||||||||
Total Purchase Price | 378,100,000 | ||||||||||||||||||
Number of businesses acquired | 3 | 3 | |||||||||||||||||
Goodwill | 781,163,000 | 669,217,000 | 781,163,000 | 669,217,000 | 501,141,000 | ||||||||||||||
Issuance of shares from treasury stock for acquisition of S1 Corporation | 286,500 | ||||||||||||||||||
Realized gain on available-for-sale securities | 1,557,000 | ||||||||||||||||||
Term credit facility | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Additional borrowing | 150,000,000 | ||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Additional borrowing | 60,500,000 | ||||||||||||||||||
Profesionales en Transacciones Electronicas S.A. - Venezuela ("PTESA-V") | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Percentage of ownership interest acquired | 100.00% | ||||||||||||||||||
Profesionales en Transacciones Electronicas S.A. - Ecuador ("PTESA-E") | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Percentage of ownership interest acquired | 100.00% | ||||||||||||||||||
Profesionales En Transacciones Electronicas Venezuela And Ecuador | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Total Purchase Price | 2,800,000 | ||||||||||||||||||
Profesionales en Transacciones Electronicas S.A. - Colombia ("PTESA-C") | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Total Purchase Price | 11,400,000 | ||||||||||||||||||
Profesionales en Transacciones Electronicas S.A | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Total Purchase Price | 14,200,000 | ||||||||||||||||||
Goodwill | 7,113,000 | 7,113,000 | |||||||||||||||||
Purchase price, non tax deductible goodwill amount | 1,500,000 | ||||||||||||||||||
Retail Decisions [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Revenue | 17,900,000 | ||||||||||||||||||
Operating income | 1,900,000 | ||||||||||||||||||
Goodwill | 135,643,000 | 135,643,000 | |||||||||||||||||
Official Payments Holdings, Inc. | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business acquisition cash paid | 139,800,000 | ||||||||||||||||||
Additional borrowing | 40,000,000 | ||||||||||||||||||
Acquisition related transaction expenses | 1,200,000 | ||||||||||||||||||
Revenue | 135,700,000 | 23,300,000 | |||||||||||||||||
Cash paid per common stock | $8.35 | ||||||||||||||||||
Goodwill | 29,236,000 | 29,200,000 | 29,236,000 | 29,200,000 | |||||||||||||||
Online Resources Corporation | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquisition related transaction expenses | 5,400,000 | ||||||||||||||||||
Revenue | 151,300,000 | 120,800,000 | |||||||||||||||||
Operating income | 6,400,000 | ||||||||||||||||||
Total Purchase Price | 260,100,000 | ||||||||||||||||||
Cash paid per common stock | $3.85 | ||||||||||||||||||
Goodwill | 122,247,000 | 122,247,000 | |||||||||||||||||
Business acquisition common stock purchase price | 132,900,000 | ||||||||||||||||||
Distra Pty Ltd | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business acquisition cash paid | 49,800,000 | ||||||||||||||||||
Goodwill | 21,307,000 | 21,307,000 | |||||||||||||||||
Percentage of ownership interest acquired | 100.00% | ||||||||||||||||||
North Data Uruguay S.A. | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Total Purchase Price | 4,600,000 | ||||||||||||||||||
Goodwill | 3,500,000 | ||||||||||||||||||
Business acquisition, cash acquired | 100,000 | ||||||||||||||||||
S1 Corporation | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business acquisition cash paid | 368,700,000 | ||||||||||||||||||
Acquisition related transaction expenses | 6,100,000 | ||||||||||||||||||
Revenue | 161,900,000 | ||||||||||||||||||
Operating income | -6,900,000 | ||||||||||||||||||
Total Purchase Price | 587,284,000 | ||||||||||||||||||
Goodwill | 256,244,000 | 256,244,000 | |||||||||||||||||
Acquisition transaction paid in shares | 5,900,000 | ||||||||||||||||||
Issuance of shares from treasury stock for acquisition of S1 Corporation | 95,500 | ||||||||||||||||||
Cash price per share S1 stockholders could elect to receive for one share of S1 stock | $10 | ||||||||||||||||||
Pro-Rata share of the Company stock a S1 stockholder could elect to receive for one share of S1 stock | 0.3148 | ||||||||||||||||||
Proration of exchange percentage of S1 share | 33.80% | ||||||||||||||||||
Proration of exchange percentage, S1 share for cash | 66.20% | ||||||||||||||||||
Share price used to calculate cash payment for fractional shares | $34.14 | ||||||||||||||||||
Realized gain on available-for-sale securities | 1,600,000 | ||||||||||||||||||
Acquisition transaction paid in cash | 73,700,000 | ||||||||||||||||||
Customer relationships | Profesionales en Transacciones Electronicas S.A | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Amortizable intangible assets | 7,732,000 | 7,732,000 | |||||||||||||||||
Customer relationships | Retail Decisions [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Amortizable intangible assets | 50,480,000 | 50,480,000 | |||||||||||||||||
Acquired intangible assets, weighted-average useful lives | 18 years | ||||||||||||||||||
Customer relationships | Official Payments Holdings, Inc. | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Amortizable intangible assets | 47,400,000 | 47,400,000 | 47,400,000 | 47,400,000 | |||||||||||||||
Customer relationships | Online Resources Corporation | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Amortizable intangible assets | 68,750,000 | 68,750,000 | |||||||||||||||||
Customer relationships | Distra Pty Ltd | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Amortizable intangible assets | 6,200,000 | 6,200,000 | |||||||||||||||||
Customer relationships | North Data Uruguay S.A. | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Amortizable intangible assets | 2,200,000 | ||||||||||||||||||
Acquired intangible assets, weighted-average useful lives | 12 years 7 months 6 days | ||||||||||||||||||
Customer relationships | S1 Corporation | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Amortizable intangible assets | 108,690,000 | 108,690,000 | |||||||||||||||||
Maximum | Official Payments Holdings, Inc. | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Operating income | -100,000 | ||||||||||||||||||
Maximum | Customer relationships | Profesionales en Transacciones Electronicas S.A | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquired intangible assets, weighted-average useful lives | 15 years | ||||||||||||||||||
Maximum | Customer relationships | Official Payments Holdings, Inc. | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquired intangible assets, weighted-average useful lives | 15 years | ||||||||||||||||||
Maximum | Customer relationships | Online Resources Corporation | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquired intangible assets, weighted-average useful lives | 15 years | ||||||||||||||||||
Maximum | Customer relationships | Distra Pty Ltd | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquired intangible assets, weighted-average useful lives | 20 years | ||||||||||||||||||
Maximum | Customer relationships | S1 Corporation | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Acquired intangible assets, weighted-average useful lives | 20 years | ||||||||||||||||||
Series A-1 Convertible Preferred Stock | Online Resources Corporation | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Business acquisition preferred stock purchase price | 127,200,000 | ||||||||||||||||||
Available-for-sale Securities | S1 Corporation | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Issuance of shares for acquisition of S1 Corporation | 1,107,000 | ||||||||||||||||||
New Senior Secured Credit Facilities | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Additional borrowings under credit facility | 300,000,000 | ||||||||||||||||||
New Senior Secured Credit Facilities | S1 Corporation | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Additional borrowings under credit facility | $295,000,000 |
Preliminary_Purchase_Price_All
Preliminary Purchase Price Allocation of Official Payments Holdings, Online Resources Corporation and PTESA (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
Business Acquisition [Line Items] | |||
Goodwill | 781,163 | $669,217 | $501,141 |
Retail Decisions [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 795 | ||
Billed and accrued receivables, net | 10,126 | ||
Deferred income taxes, net | 250 | ||
Other current assets | 9,932 | ||
Total current assets acquired | 21,103 | ||
Property and equipment | 3,354 | ||
Goodwill | 135,643 | ||
Deferred income taxes | 1,622 | ||
Other noncurrent assets | 416 | ||
Total assets acquired | 249,734 | ||
Accounts payable | 4,624 | ||
Accrued employee compensation | 7,289 | ||
Other current liabilities | 6,168 | ||
Total current liabilities acquired | 18,081 | ||
Deferred income taxes, net | 26,404 | ||
Other noncurrent liabilities acquired | 164 | ||
Total liabilities acquired | 44,649 | ||
Net assets acquired | 205,085 | ||
Official Payments Holdings, Inc. | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 25,871 | ||
Billed and accrued receivables, net | 2,858 | ||
Deferred income taxes, net | 4,692 | ||
Other current assets | 27,642 | ||
Total current assets acquired | 61,063 | ||
Property and equipment | 6,340 | ||
Goodwill | 29,236 | 29,200 | |
Other noncurrent assets | 19,178 | ||
Total assets acquired | 192,342 | ||
Accounts payable | 9,414 | ||
Accrued employee compensation | 15,006 | ||
Other current liabilities | 27,312 | ||
Total current liabilities acquired | 51,732 | ||
Other noncurrent liabilities acquired | 828 | ||
Total liabilities acquired | 52,560 | ||
Net assets acquired | 139,782 | ||
Online Resources Corporation | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 9,930 | ||
Billed and accrued receivables, net | 19,394 | ||
Deferred income taxes, net | 11,726 | ||
Other current assets | 17,643 | ||
Total current assets acquired | 58,693 | ||
Property and equipment | 7,335 | ||
Goodwill | 122,247 | ||
Other noncurrent assets | 459 | ||
Total assets acquired | 322,749 | ||
Accounts payable | 15,394 | ||
Accrued employee compensation | 10,549 | ||
Note payable | 7,500 | ||
Other current liabilities | 7,559 | ||
Total current liabilities acquired | 41,002 | ||
Deferred income taxes, net | 18,290 | ||
Other noncurrent liabilities acquired | 3,339 | ||
Total liabilities acquired | 62,631 | ||
Net assets acquired | 260,118 | ||
Profesionales en Transacciones Electronicas S.A | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 193 | ||
Billed and accrued receivables, net | 327 | ||
Other current assets | 95 | ||
Total current assets acquired | 615 | ||
Property and equipment | 6 | ||
Goodwill | 7,113 | ||
Other noncurrent assets | 7 | ||
Total assets acquired | 15,473 | ||
Accounts payable | 341 | ||
Accrued employee compensation | 261 | ||
Total current liabilities acquired | 602 | ||
Deferred income taxes, net | 225 | ||
Other noncurrent liabilities acquired | 439 | ||
Total liabilities acquired | 1,266 | ||
Net assets acquired | 14,207 | ||
Software | Retail Decisions [Member] | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | 33,136 | ||
Software | Retail Decisions [Member] | Minimum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 5 years | ||
Software | Retail Decisions [Member] | Maximum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 7 years | ||
Software | Official Payments Holdings, Inc. | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 10 years | ||
Amortizable intangible assets | 26,125 | ||
Software | Online Resources Corporation | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 10 years | ||
Amortizable intangible assets | 62,215 | ||
Customer relationships | Retail Decisions [Member] | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 18 years | ||
Amortizable intangible assets | 50,480 | ||
Customer relationships | Official Payments Holdings, Inc. | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | 47,400 | 47,400 | |
Customer relationships | Official Payments Holdings, Inc. | Minimum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 14 years | ||
Customer relationships | Official Payments Holdings, Inc. | Maximum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 15 years | ||
Customer relationships | Online Resources Corporation | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | 68,750 | ||
Customer relationships | Online Resources Corporation | Minimum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 14 years | ||
Customer relationships | Online Resources Corporation | Maximum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 15 years | ||
Customer relationships | Profesionales en Transacciones Electronicas S.A | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | 7,732 | ||
Customer relationships | Profesionales en Transacciones Electronicas S.A | Minimum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 14 years | ||
Customer relationships | Profesionales en Transacciones Electronicas S.A | Maximum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 15 years | ||
Trademarks | Retail Decisions [Member] | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 5 years | ||
Amortizable intangible assets | 3,980 | ||
Trademarks | Official Payments Holdings, Inc. | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | 3,000 | ||
Trademarks | Official Payments Holdings, Inc. | Minimum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 3 years | ||
Trademarks | Official Payments Holdings, Inc. | Maximum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 5 years | ||
Trademarks | Online Resources Corporation | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | 3,050 | ||
Trademarks | Online Resources Corporation | Minimum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 3 years | ||
Trademarks | Online Resources Corporation | Maximum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 5 years |
Purchase_Price_of_S1_Corporati
Purchase Price of S1 Corporation's Common stock (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Aug. 12, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 13, 2012 |
Business Acquisition [Line Items] | ||||
Issuance of ACI common stock | $204,856 | |||
Reissuance of treasury stock | 2,174 | |||
Cash payments | 205,100 | 641,700 | ||
Total Purchase Price | 378,100 | |||
S1 Corporation | ||||
Business Acquisition [Line Items] | ||||
Cash payments | 365,918 | |||
Issuance of ACI common stock | 204,857 | |||
Reissuance of treasury stock | 2,174 | |||
Cash payments | 368,700 | |||
S1 shares previously held as available-for-sale securities | 11,557 | |||
Total Purchase Price | 587,284 | |||
S1 Corporation | Covenant not to compete | ||||
Business Acquisition [Line Items] | ||||
Cash payments | $2,778 |
Preliminary_Purchase_Price_All1
Preliminary Purchase Price Allocation of S1 Corporation and Distra Pty Ltd (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2011 |
Business Acquisition [Line Items] | |||
Goodwill | 669,217 | $781,163 | $501,141 |
S1 Corporation | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 97,748 | ||
Billed and accrued receivables, net | 65,329 | ||
Other current assets | 16,791 | ||
Total current assets acquired | 179,868 | ||
Property and equipment | 18,440 | ||
Goodwill | 256,244 | ||
Deferred income tax | 40,634 | ||
Other noncurrent assets | 11,004 | ||
Total assets acquired | 707,257 | ||
Deferred revenue | 34,671 | ||
Accrued employee compensation | 34,689 | ||
Other current liabilities | 28,387 | ||
Total current liabilities acquired | 97,747 | ||
Deferred income tax | 15,795 | ||
Other noncurrent liabilities acquired | 6,431 | ||
Total liabilities acquired | 119,973 | ||
Net assets acquired | 587,284 | ||
S1 Corporation | Software | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | 87,517 | ||
S1 Corporation | Software | Minimum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 5 years | ||
S1 Corporation | Software | Maximum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 10 years | ||
S1 Corporation | Customer relationships | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | 108,690 | ||
S1 Corporation | Customer relationships | Minimum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 10 years | ||
S1 Corporation | Customer relationships | Maximum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 20 years | ||
S1 Corporation | Trademarks | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 3 years | ||
Amortizable intangible assets | 4,500 | ||
S1 Corporation | Covenant not to compete | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 3 years | ||
Amortizable intangible assets | 360 | ||
Distra Pty Ltd | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 2 | ||
Billed and accrued receivables, net | 338 | ||
Other current assets | 1,152 | ||
Total current assets acquired | 1,492 | ||
Property and equipment | 96 | ||
Goodwill | 21,307 | ||
Deferred income tax | 12,331 | ||
Total assets acquired | 60,228 | ||
Deferred revenue | 320 | ||
Accrued employee compensation | 1,205 | ||
Other current liabilities | 736 | ||
Total current liabilities acquired | 2,261 | ||
Deferred income tax | 8,217 | ||
Total liabilities acquired | 10,478 | ||
Net assets acquired | 49,750 | ||
Distra Pty Ltd | Software | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | 18,802 | ||
Distra Pty Ltd | Software | Minimum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 5 years | ||
Distra Pty Ltd | Software | Maximum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 10 years | ||
Distra Pty Ltd | Customer relationships | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets | 6,200 | ||
Distra Pty Ltd | Customer relationships | Minimum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 10 years | ||
Distra Pty Ltd | Customer relationships | Maximum | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 20 years |
Pro_Forma_Results_of_Combined_
Pro Forma Results of Combined Company Operations (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition, Pro Forma Information [Abstract] | ||
Total Revenues | $1,027,422 | $1,017,681 |
Net Income | $78,002 | $64,443 |
Income per share | ||
Basic | $0.66 | $0.56 |
Diluted | $0.65 | $0.54 |
Software_and_Other_Intangible_2
Software and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | $209,507,000 | $191,468,000 | |
Software, accumulated amortization | 121,600,000 | 95,300,000 | |
Other intangible assets amortization expense | 24,700,000 | 18,500,000 | 12,100,000 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 20 years | ||
Software Marketed for External Sale | |||
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | 85,900,000 | 94,000,000 | |
Software, amortization expense | 14,800,000 | 13,600,000 | 13,800,000 |
Software Marketed for External Sale | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Software Marketed for External Sale | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 10 years | ||
Software Acquired or Developed for Internal Use | |||
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | 123,600,000 | 97,500,000 | |
Software, amortization expense | $26,700,000 | $19,100,000 | $11,600,000 |
Software Acquired or Developed for Internal Use | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Software Acquired or Developed for Internal Use | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 10 years |
Carrying_Amount_and_Accumulate
Carrying Amount and Accumulated Amortization of Other Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $349,184 | $302,654 |
Accumulated Amortization | -87,748 | -64,961 |
Net Balance | 261,436 | 237,693 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 322,216 | 277,356 |
Accumulated Amortization | -68,616 | -49,410 |
Net Balance | 253,600 | 227,946 |
Purchased contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,768 | 10,865 |
Accumulated Amortization | -10,768 | -10,865 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,767 | 13,995 |
Accumulated Amortization | -7,946 | -4,383 |
Net Balance | 7,821 | 9,612 |
Covenant not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 433 | 438 |
Accumulated Amortization | -418 | -303 |
Net Balance | $15 | $135 |
Estimated_Amortization_Expense
Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | $261,436 | $237,693 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | 42,379 | |
2016 | 37,138 | |
2017 | 30,993 | |
2018 | 25,764 | |
2019 | 23,054 | |
Thereafter | 50,179 | |
Total | 209,507 | |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | 22,863 | |
2016 | 21,728 | |
2017 | 20,225 | |
2018 | 19,716 | |
2019 | 19,110 | |
Thereafter | 157,794 | |
Total | $261,436 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 20, 2014 | Aug. 20, 2013 | Aug. 12, 2014 | Nov. 10, 2011 | |
Debt Instrument [Line Items] | |||||||
Credit Facility maturity date | 20-Aug-18 | ||||||
Additional borrowing | $169,500,000 | $40,000,000 | $119,000,000 | ||||
Debt issuance cost paid | 4,662,000 | 17,042,000 | 1,094,000 | ||||
Credit facility, interest rate description | The applicable margin for borrowings under the Revolving Credit Facility is, based on the calculation of the applicable consolidated total leverage ratio, between 0.50% to 1.50% with respect to base rate borrowings and between 1.50% and 2.50% with respect to LIBOR based borrowings. Interest is due and payable monthly. The interest rate in effect at December 31, 2014 for the Credit Facility was 2.67%. | ||||||
Credit facility, interest rate margin above federal fund rate | 1.00% | ||||||
Credit facility, interest rate margin above one-month LIBOR rate | 1.00% | ||||||
Credit facility, borrowing rate | 2.67% | ||||||
Maturity date of senior notes | 15-Aug-20 | ||||||
Other current liabilities | 7,340,000 | 6,410,000 | |||||
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, interest rate margin above base rate | 0.50% | ||||||
Credit facility, interest rate margin above LIBOR rate | 1.50% | ||||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, interest rate margin above base rate | 1.50% | ||||||
Credit facility, interest rate margin above LIBOR rate | 2.50% | ||||||
Fourth Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Borrowing under credit facility after amendment | 300,000,000 | ||||||
Borrowing under credit facility | 200,000,000 | ||||||
Credit Facility maturity date | 20-Aug-18 | ||||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes amount outstanding | 300,000,000 | 300,000,000 | |||||
Percentage of interest rate on notes | 6.38% | 6.38% | |||||
Debt issuance cost incurred | 6,100,000 | ||||||
Debt issuance cost paid | 200,000 | 5,900,000 | |||||
Issue price percentage of senior notes of the principal amount | 100.00% | ||||||
Maturity date of senior notes | 20-Aug-20 | ||||||
Fifth Amendment | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Credit agreement intercompany indebtedness permitted amount | 75,000,000 | ||||||
Credit agreement intercompany unsecured indebtedness permitted amount | 350,000,000 | ||||||
Fifth Amendment | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Credit agreement intercompany indebtedness permitted amount | 225,000,000 | ||||||
Credit agreement intercompany unsecured indebtedness permitted amount | 500,000,000 | ||||||
License agreement | |||||||
Debt Instrument [Line Items] | |||||||
Financed internally-used software | 14,800,000 | ||||||
License agreement period | 5 years | ||||||
Annual payments due date | April through 2016 | ||||||
Total other liabilities | 6,300,000 | 9,300,000 | |||||
Other current liabilities | 3,100,000 | 3,000,000 | |||||
Other noncurrent liabilities | 3,200,000 | 6,300,000 | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility amount outstanding | 44,000,000 | ||||||
Unused borrowings | 206,000,000 | ||||||
Credit facilities, maximum borrowing capacity | 250,000,000 | ||||||
Credit facilities, maturity | 5 years | ||||||
Additional borrowing | 60,500,000 | ||||||
Term Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility amount outstanding | 547,900,000 | ||||||
Credit facilities, maximum borrowing capacity | 500,000,000 | ||||||
Credit facilities, maturity | 5 years | ||||||
Additional borrowing | 150,000,000 | ||||||
Debt issuance cost incurred | 28,600,000 | ||||||
Debt issuance cost paid | $4,500,000 | $11,300,000 | $12,800,000 | ||||
Parent Company and Domestic Subsidiaries | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of capital stock pledged as collateral | 100.00% | ||||||
Foreign Subsidiaries | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of capital stock pledged as collateral | 65.00% |
Maturities_on_LongTerm_Debt_Ou
Maturities on Long-Term Debt Outstanding (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $87,352 | |
2016 | 95,293 | |
2017 | 95,293 | |
2018 | 313,997 | |
2019 | 0 | |
Thereafter | 300,000 | |
Total | $891,935 | $755,383 |
Carrying_Value_of_Senior_Notes
Carrying Value of Senior Notes (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt | $891,935 | $755,383 |
Less current portion of term credit facility | 87,352 | 47,313 |
Total long-term debt | 804,583 | 708,070 |
Term credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 547,935 | 455,383 |
6.375% Senior Notes, due August 2020 | ||
Debt Instrument [Line Items] | ||
Total debt | 300,000 | 300,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | $44,000 |
Carrying_Value_of_Senior_Notes1
Carrying Value of Senior Notes (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Instrument [Line Items] | |
Maturity date of senior notes | 15-Aug-20 |
6.375% Senior Notes, due August 2020 | |
Debt Instrument [Line Items] | |
Percentage of interest rate on notes | 6.38% |
Maturity date of senior notes | 15-Aug-20 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred tax assets, valuation allowance | $8.70 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value senior note | 315 | |
Yodlee, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost basis investment | 9.8 | |
Additional investment | 1 | |
Total investments | 10.8 | |
Realized gain on available-for-sale securities | 23 | |
Cost basis price appreciation of shares | 10.8 | |
Yodlee, Inc. | Equity securities | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities, Fair Value | $33.80 |
Corporate_Restructuring_and_Ot2
Corporate Restructuring and Other Organizational Changes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Position | Position | Position | |
Restructuring Cost and Reserve [Line Items] | |||
Employee termination costs (adjustments) | $8,700,000 | $8,900,000 | $9,200,000 |
Employee termination costs paid during the period | 6,200,000 | 7,400,000 | 8,400,000 |
Liability is expected to be paid | 12 months | ||
Number of positions eliminated | 220 | 147 | 272 |
Total liability paid to employees | 2,300,000 | ||
Remaining liability paid to employees | 1,600,000 | ||
Unfavorable lease liability | 1,708,000 | ||
Restructuring charges | 2,793,000 | 3,341,000 | 1,914,000 |
Other Noncurrent Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 700,000 | ||
Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2,341,000 | 1,470,000 | 618,000 |
Lease for facility in Dublin, Ireland | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease termination fee | 2,800,000 | ||
Unfavorable lease liability | 500,000 | ||
Facility Closures | |||
Restructuring Cost and Reserve [Line Items] | |||
Unfavorable lease liability | 1,708,000 | ||
Restructuring charges | 452,000 | 1,871,000 | 1,296,000 |
Employee Compensation | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,600,000 | ||
General and Administrative Expense | Leased Facilities in Chantilly, VA, North Brunswick, NJ, Columbus, OH, Duluth, GA, and Bangalore, India | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease termination fee | 1,700,000 | ||
General and Administrative Expense | Lease for facility in New York | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease termination fee | 1,100,000 | ||
General and Administrative Expense | Lease for facility in Dublin, Ireland | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease termination fee | 2,300,000 | ||
General and Administrative Expense | Leased facilities in Toronto, Canada and Chertsey, England | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease termination fee | 1,300,000 | ||
Americas | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee termination costs (adjustments) | 5,700,000 | 6,300,000 | 3,700,000 |
EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee termination costs (adjustments) | 2,000,000 | 2,200,000 | 4,600,000 |
Asia/Pacific | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee termination costs (adjustments) | $1,000,000 | $400,000 | $900,000 |
Components_of_Corporate_Restru
Components of Corporate Restructuring and Other Reorganization Activities from Recent Acquisitions (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | $3,341 | $1,914 |
Restructuring charges (adjustments) incurred, net | 8,535 | 8,885 |
Unfavorable lease liability | 1,708 | |
Amounts paid during the period | -9,024 | -9,087 |
Foreign currency translation adjustments | -59 | -79 |
Ending balance | 2,793 | 3,341 |
Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 1,470 | 618 |
Restructuring charges (adjustments) incurred, net | 8,671 | 8,885 |
Amounts paid during the period | -7,741 | -7,996 |
Foreign currency translation adjustments | -59 | -37 |
Ending balance | 2,341 | 1,470 |
Facility Closures | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 1,871 | 1,296 |
Restructuring charges (adjustments) incurred, net | -136 | |
Unfavorable lease liability | 1,708 | |
Amounts paid during the period | -1,283 | -1,091 |
Foreign currency translation adjustments | -42 | |
Ending balance | $452 | $1,871 |
Common_Stock_and_Treasury_Stoc1
Common Stock and Treasury Stock - Additional Information (Detail) (USD $) | 12 Months Ended | 36 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Feb. 28, 2014 | Jul. 31, 2013 | Feb. 29, 2012 | Dec. 31, 2011 | Sep. 13, 2012 | |
Maximum stock authorized to purchase under stock repurchase program | $262,100,000 | $210,000,000 | |||||||
Increase in maximum stock authorized to purchase under stock repurchase program | 100,000,000 | 100,000,000 | 52,100,000 | ||||||
Repurchase of common stock, shares | 3,578,427 | 4,970,424 | 4,313,076 | 37,108,467 | |||||
Repurchase of common stock, value | 70,000,000 | 80,912,000 | 57,836,000 | 395,800,000 | |||||
Number shares issued pursuant to stock option exercises | 2,036,558 | 2,478,183 | 2,541,903 | ||||||
Long-term incentive program performance share awards | |||||||||
Stock issued during the period performance share award | 635,643 | 982,728 | |||||||
Restricted share awards (RSAs) | |||||||||
Stock issued during the period restricted share awards | 106,275 | 25,989 | 679,782 | ||||||
Stock Options | |||||||||
Number shares issued pursuant to stock option exercises | 2,037,467 | 2,493,684 | 2,541,903 | ||||||
Maximum | |||||||||
Maximum stock authorized to purchase under stock repurchase program | 113,000,000 | ||||||||
Stock authorized to purchase under stock repurchase program, shares | 7,500,000 | ||||||||
Remaining value of shares authorized for purchase under the stock repurchase program | $138,300,000 | $138,300,000 |
Reconciliation_of_Average_Shar
Reconciliation of Average Share Amounts used to Compute Both Basic and Diluted Earnings (Loss) Per Share (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Weighted average shares outstanding: | |||
Basic weighted average shares outstanding | 114,798 | 117,885 | 116,089 |
Add: Dilutive effect of stock options, restricted stock awards and other dilutive securities | 1,973 | 2,169 | 3,627 |
Diluted weighted average shares outstanding | 116,771 | 120,054 | 119,716 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Options to purchase shares, contingently issuable shares, and common stock warrants excluded from diluted net income per share computation | 2,900,000 | 4,500,000 | 5,100,000 |
Common stock outstanding | 115,637,804 | 116,564,967 |
Other_Net_Detail
Other, Net (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||||||||||
Foreign currency transaction losses | ($67) | ($2,697) | ($750) | ||||||||
Realized gain on available-for-sale securities | 1,557 | ||||||||||
Other | -173 | -630 | -408 | ||||||||
Total | $1,104 | $3,614 | ($3,901) | ($1,057) | ($1,821) | ($3,152) | ($1,519) | $3,165 | ($240) | ($3,327) | $399 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | |||
Number of geographic regions considered as reportable operating segments | 3 | ||
BASE24 | |||
Segment Reporting Information [Line Items] | |||
Percentage of total revenues from licensing BASE24 product line | 21.00% | 28.00% | 32.00% |
Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenues | No country outside of the United States accounted for more than 10% of the Company's consolidated revenues during the years ended December 31, 2014, 2013 and 2012. | No country outside of the United States accounted for more than 10% of the Company's consolidated revenues during the years ended December 31, 2014, 2013 and 2012. | No country outside of the United States accounted for more than 10% of the Company's consolidated revenues during the years ended December 31, 2014, 2013 and 2012. |
Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenues | No single customer accounted for more than 10% of the Company's consolidated revenues during the years ended December 31, 2014, 2013 and 2012. | No single customer accounted for more than 10% of the Company's consolidated revenues during the years ended December 31, 2014, 2013 and 2012. | No single customer accounted for more than 10% of the Company's consolidated revenues during the years ended December 31, 2014, 2013 and 2012. |
Selected_Segment_Financial_Dat
Selected Segment Financial Data, Revenues and Income (Loss) Before Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $290,224 | $249,644 | $254,808 | $221,473 | $283,162 | $213,939 | $205,830 | $161,997 | $1,016,149 | $864,928 | $666,579 |
Depreciation and amortization expense | 86,683 | 69,967 | 50,781 | ||||||||
Stock-based compensation expense | 11,045 | 13,572 | 15,186 | ||||||||
Income (loss) before taxes | 69,700 | 25,165 | 13,646 | -9,742 | 74,499 | 19,109 | 4,161 | -4,610 | 98,769 | 93,159 | 65,268 |
Corporate, Non-Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization expense | 60,200 | 44,053 | 31,614 | ||||||||
Stock-based compensation expense | 7,467 | 10,128 | 14,177 | ||||||||
Income (loss) before taxes | -199,583 | -173,782 | -149,418 | ||||||||
Americas - United States | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 614,488 | 450,251 | 277,775 | ||||||||
Americas - Other | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 87,279 | 91,639 | 74,422 | ||||||||
EMEA | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 230,879 | 228,679 | 218,015 | ||||||||
Depreciation and amortization expense | 4,126 | 6,310 | 5,175 | ||||||||
Stock-based compensation expense | 419 | 759 | 439 | ||||||||
Income (loss) before taxes | 116,120 | 87,522 | 78,848 | ||||||||
Asia/Pacific | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 83,503 | 94,359 | 96,367 | ||||||||
Depreciation and amortization expense | 1,809 | 2,574 | 3,075 | ||||||||
Stock-based compensation expense | 249 | 293 | 314 | ||||||||
Income (loss) before taxes | 38,853 | 33,923 | 32,673 | ||||||||
Americas | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization expense | 20,548 | 17,030 | 10,917 | ||||||||
Stock-based compensation expense | 2,910 | 2,392 | 256 | ||||||||
Income (loss) before taxes | $143,379 | $145,496 | $103,165 |
Selected_Segment_Financial_Dat1
Selected Segment Financial Data, Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | $1,382,245 | $1,196,637 |
Assets | 1,850,700 | 1,681,851 |
Americas - United States | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 929,459 | 832,169 |
Assets | 1,210,674 | 1,129,064 |
Americas - Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 15,337 | 18,708 |
Assets | 32,594 | 39,995 |
EMEA | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 360,033 | 262,906 |
Assets | 487,629 | 380,320 |
Asia/Pacific | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 77,416 | 82,854 |
Assets | $119,803 | $132,472 |
Revenues_by_Product_Line_Detai
Revenues, by Product Line (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $290,224 | $249,644 | $254,808 | $221,473 | $283,162 | $213,939 | $205,830 | $161,997 | $1,016,149 | $864,928 | $666,579 |
Retail payments processing | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 406,023 | 410,200 | 372,942 | ||||||||
Online banking and community financial services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 227,659 | 223,902 | 169,652 | ||||||||
Wholesale banking payments | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 37,879 | 35,396 | 39,717 | ||||||||
Payment fraud management | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 36,235 | 37,136 | 25,160 | ||||||||
Card and merchant management | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 32,887 | 18,072 | 21,963 | ||||||||
Tools and infrastructure | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 40,427 | 38,241 | 37,145 | ||||||||
Billers | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $235,039 | $101,981 |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||
Jul. 24, 2007 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Jun. 14, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares issued under ESPP | 154,223 | 128,568 | 122,394 | ||||||
Stock-based compensation expense | $11,045,000 | $13,572,000 | $15,186,000 | ||||||
Employee stock purchase plan, amended plan start date | 1-May-08 | ||||||||
Employee stock purchase plan, amended plan end date | 30-Apr-18 | ||||||||
Employee stock purchase plan term | 10 years | ||||||||
Term of outstanding options | 5 years 8 months 19 days | ||||||||
Incentive plan, percentage of options expected to vest over the vesting period | 93.20% | 93.20% | 93.20% | ||||||
Incentive plan, weighted-average grant date fair value of stock options granted | $9.02 | $8.72 | $6.85 | ||||||
Incentive plan, total intrinsic value of stock options exercised | 22,800,000 | 25,500,000 | 17,300,000 | ||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||
Dividend paid | $0 | ||||||||
Stock-based compensation expenses tax benefits | 4,200,000 | 5,200,000 | 5,500,000 | ||||||
Proceeds from exercises of stock options | 16,461,000 | 19,561,000 | 16,730,000 | ||||||
Actual tax benefit realized from tax deductions of option exercises | 8,600,000 | 9,700,000 | 6,300,000 | ||||||
2005 Stock Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized | 15,000,000 | 23,250,000 | |||||||
Employee stock purchase plan term | 10 years | ||||||||
Number of shares granted | 0 | ||||||||
Shares of common stock reserved for issuance prior to amendment | 9,000,000 | 9,000,000 | 9,000,000 | ||||||
Restricted share awards (RSAs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards granted requisite service period | 3 years | 3 years | 3 years | ||||||
Restricted share awards, vesting increments on anniversary dates of grants | 33.00% | 33.00% | 33.00% | ||||||
Restricted shares awards, shares vested | 66,670 | 88,638 | 237,897 | ||||||
Restricted shares withheld to pay employees' portion of minimum payroll withholding taxes | 26,461 | 31,746 | 71,439 | ||||||
Unrecognized compensation costs | 1,900,000 | 1,900,000 | 1,900,000 | ||||||
Unrecognized compensation costs, weighted-average recognition periods | 10 months 24 days | ||||||||
Restricted share awards (RSAs) | S1 Corporation | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards granted requisite service period | 4 years | ||||||||
Restricted share awards, vesting increments on anniversary dates of grants | 25.00% | ||||||||
Vesting percentage if employee is terminated without cause within 12 months from acquisition date | 100.00% | 100.00% | 100.00% | ||||||
Original grant date | 9-Nov-11 | ||||||||
Restricted share awards (RSAs) | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards granted requisite service period | 3 years | ||||||||
Restricted share awards, vesting increments on anniversary dates of grants | 33.00% | ||||||||
Restricted share awards (RSAs) | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards granted requisite service period | 4 years | ||||||||
Restricted share awards, vesting increments on anniversary dates of grants | 25.00% | ||||||||
2010 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 136.00% | ||||||||
2010 Grant | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 130.00% | ||||||||
2010 Grant | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 175.00% | ||||||||
2012 Grant | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 0.00% | ||||||||
2012 Grant | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 100.00% | ||||||||
2013 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 75.00% | ||||||||
2011 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected attainment level for the awards granted, percentage | 100.00% | ||||||||
Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation costs | 6,700,000 | 6,700,000 | 6,700,000 | ||||||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 8 months 12 days | ||||||||
LTIP Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation costs | 6,700,000 | 6,700,000 | 6,700,000 | ||||||
Unrecognized compensation costs, weighted-average recognition periods | 2 years | ||||||||
Employee Stock Purchase Plan 1999 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized | 4,500,000 | 4,500,000 | 4,500,000 | ||||||
Permitted designation for purchase of common stock under ESPP | Participating employees are permitted to designate up to the lesser of $25,000, or 10% of their annual base compensation, for the purchase of common stock under the ESPP. Purchases under the ESPP are made one calendar month after the end of each fiscal quarter. | ||||||||
Employee participating annual base compensation designated for purchase of common stock, amount | 25,000 | 25,000 | 25,000 | ||||||
Employee participating annual base compensation designated for purchase of common stock, percent | 10.00% | 10.00% | 10.00% | ||||||
Price of common stock purchased under ESPP, description | The price for shares of common stock purchased under the ESPP is 85% of the stock's fair market value on the last business day of the three-month participation period. | ||||||||
Price of common stock purchased under ESPP, percent | 85.00% | ||||||||
Discount offered pursuant to ESPP, percentage | 15.00% | ||||||||
Stock-based compensation expense | $500,000 | $300,000 | $200,000 | ||||||
2002 Non-Employee Director Stock Option Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized | 750,000 | 750,000 | 750,000 | ||||||
Stock option expiration period | Mar-05 | ||||||||
Term of outstanding options | 10 years | ||||||||
1999 Stock Option Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized | 12,000,000 | 12,000,000 | 12,000,000 | ||||||
Stock option expiration period | Feb-09 | ||||||||
Term of outstanding options | 10 years | ||||||||
1999 Stock Option Plan | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
LTIP Performance Shares, Performance period | 3 years | ||||||||
1999 Stock Option Plan | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
LTIP Performance Shares, Performance period | 4 years | ||||||||
LTIP Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum attainment percentage that may be achieved for LTIP Performance Shares | 200.00% | 200.00% | 200.00% | 200.00% | 200.00% | 200.00% | |||
Restricted shares awards, shares vested | 635,643 | 982,728 | 0 | ||||||
Restricted shares withheld to pay employees' portion of minimum payroll withholding taxes | 228,279 | 338,262 | |||||||
LTIP Performance Shares | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
LTIP Performance Shares, Performance period | 1 year | 1 year | 1 year | ||||||
LTIP Performance Shares | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
LTIP Performance Shares, Performance period | 3 years | 3 years | 3 years | ||||||
S1 2003 Stock Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted shares awards, shares vested | 19,822 | 35,598 | 302,055 | ||||||
Restricted shares withheld to pay employees' portion of minimum payroll withholding taxes | 5,980 | 11,307 | 114,501 |
Summary_of_Stock_Options_Issue
Summary of Stock Options Issued Pursuant to Stock Incentive Plans (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Shares | |||
Outstanding, Beginning Balance | 7,408,821 | 8,905,746 | 10,470,168 |
Granted | 27,132 | 1,208,019 | 1,306,101 |
Exercised | -2,036,558 | -2,478,183 | -2,541,903 |
Forfeited | -116,702 | -225,474 | -316,620 |
Expired | -1,287 | -12,000 | |
Outstanding, Ending Balance | 5,282,693 | 7,408,821 | 8,905,746 |
Number of Shares Exercisable, Ending Balance | 4,325,851 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $11.02 | $9.05 | $7.76 |
Granted | $20.13 | $19.30 | $14.14 |
Exercised | $8.08 | $7.81 | $6.58 |
Forfeited | $17.80 | $12.79 | $7.40 |
Expired | $9.65 | $3.40 | |
Ending Balance | $12.06 | $11.02 | $9.05 |
Weighted Average Exercise Price Exercisable, Ending Balance | $10.66 | ||
Weighted-Average Remaining Contractual Term (Years) | |||
Weighted Average Remaining Contractual Term (Years), Outstanding as of end of period | 5 years 8 months 19 days | ||
Weighted Average Remaining Contractual Term (Years), Exercisable as of end of period | 5 years 29 days | ||
Aggregate Intrinsic Value of In-the-Money Options | |||
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period | $43,191,137 | ||
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period | $41,247,183 |
Estimated_Fair_Value_of_Option
Estimated Fair Value of Options Granted using Black-Scholes Option-Pricing Model with Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected life (years) | 5 years 10 months 24 days | 6 years 2 months 12 days | 6 years 2 months 12 days |
Risk-free interest rate | 1.80% | 1.60% | 0.80% |
Expected volatility | 45.20% | 46.00% | 51.40% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Summary_of_Transactions_Stock_
Summary of Transactions Stock Options Issued Pursuant to Stock Incentive Plans (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Shares | |||
Outstanding, Beginning Balance | 7,408,821 | 8,905,746 | 10,470,168 |
Exercised | -2,036,558 | -2,478,183 | -2,541,903 |
Cancelled | -116,702 | -225,474 | -316,620 |
Outstanding, Ending Balance | 5,282,693 | 7,408,821 | 8,905,746 |
Number of Shares Exercisable, Ending Balance | 4,325,851 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $11.02 | $9.05 | $7.76 |
Exercised | $8.08 | $7.81 | $6.58 |
Cancelled | $17.80 | $12.79 | $7.40 |
Ending Balance | $12.06 | $11.02 | $9.05 |
Weighted Average Exercise Price Exercisable, Ending Balance | $10.66 | ||
Weighted-Average Remaining Contractual Term (Years) | |||
Weighted Average Remaining Contractual Term (Years), Outstanding as of end of period | 5 years 8 months 19 days | ||
Weighted Average Remaining Contractual Term (Years), Exercisable as of end of period | 5 years 29 days | ||
Aggregate Intrinsic Value of In-the-Money Options | |||
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period | $43,191,137 | ||
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period | 41,247,183 | ||
Online Resources Corporation | |||
Number of Shares | |||
Outstanding, Beginning Balance | 62,445 | ||
Transaction stock options converted upon acquisition of ORCC | 112,404 | ||
Exercised | -909 | -15,501 | |
Cancelled | -15,024 | -34,458 | |
Outstanding, Ending Balance | 46,512 | 62,445 | |
Number of Shares Exercisable, Ending Balance | 46,512 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $35.03 | ||
Transaction stock options converted upon acquisition of ORCC | $30.64 | ||
Exercised | $13.92 | $13.92 | |
Cancelled | $31.03 | $30.21 | |
Ending Balance | $36.73 | $35.03 | |
Weighted Average Exercise Price Exercisable, Ending Balance | $36.73 | ||
Weighted-Average Remaining Contractual Term (Years) | |||
Weighted Average Remaining Contractual Term (Years), Outstanding as of end of period | 1 year 7 months 10 days | ||
Weighted Average Remaining Contractual Term (Years), Exercisable as of end of period | 1 year 7 months 10 days | ||
Aggregate Intrinsic Value of In-the-Money Options | |||
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period | 43,444 | ||
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period | $43,444 |
Summary_of_Nonvested_LongTerm_
Summary of Nonvested Long-Term Incentive Program Performance Share Awards Outstanding and Changes During Period (Detail) (LTIP Performance Shares, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
LTIP Performance Shares | |||
Number of Shares at Expected Attainment | |||
Beginning Balance | 2,718,576 | 3,304,452 | 2,794,713 |
Granted | 19,065 | 798,306 | 820,785 |
Vested | -635,643 | -982,728 | 0 |
Forfeited | -111,599 | -188,511 | -311,046 |
Change in expected attainment for 2010 grants | -844,483 | -212,943 | |
Ending Balance | 1,145,916 | 2,718,576 | 3,304,452 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $13.78 | $9.38 | $7.78 |
Granted | $20.13 | $20.30 | $14.22 |
Vested | $8.88 | $5.61 | |
Forfeited | $16.43 | $12.33 | $7.71 |
Change in expected attainment for 2010 grants | $15.86 | $8.88 | |
Ending Balance | $14.84 | $13.78 | $9.38 |
Summary_of_Nonvested_Restricte
Summary of Nonvested Restricted Share Awards and Changes During Period (Detail) (Restricted share awards (RSAs), USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted share awards (RSAs) | |||
Nonvested Restricted Share Awards | |||
Beginning Balance | 145,065 | 207,714 | 300,069 |
Granted | 106,275 | 25,989 | 169,167 |
Vested | -66,670 | -88,638 | -237,897 |
Forfeited | -1,461 | -23,625 | |
Ending Balance | 183,209 | 145,065 | 207,714 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $14.91 | $13.67 | $6.43 |
Granted | $18.57 | $16.10 | $14.94 |
Vested | $14.59 | $12.35 | $6.24 |
Forfeited | $20.51 | $5.59 | |
Ending Balance | $17.11 | $14.91 | $13.67 |
Summary_of_Nonvested_Transacti
Summary of Nonvested Transaction Restricted Share Awards Issued under Stock Incentive Plan and Changes During Period (Detail) (S1 2003 Stock Incentive Plan, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
S1 2003 Stock Incentive Plan | |||
Nonvested Restricted Share Awards | |||
Beginning Balance | 57,552 | 150,732 | |
Transaction RSAs converted upon acquisition of S1 | 510,615 | ||
Vested | -19,822 | -35,598 | -302,055 |
Forfeited | -20,165 | -57,582 | -57,828 |
Ending Balance | 17,565 | 57,552 | 150,732 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $11.80 | $11.80 | |
Transaction RSAs converted upon acquisition of S1 | $11.80 | ||
Vested | $11.80 | $11.80 | $11.80 |
Forfeited | $11.80 | $11.80 | $11.80 |
Ending Balance | $11.80 | $11.80 | $11.80 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employees maximum 401(k) contribution, percentage | 75.00% | ||
Defined contribution plan, contribution | $6,000,000 | $5,400,000 | $3,500,000 |
Employer 401(k) matching contribution to employee, maximum amount | 4,000 | ||
Defined contribution plan, employer matching percentage on every deferred dollar | 100.00% | ||
Maximum | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employer 401(k) matching contribution to employee percentage | 4.00% | ||
EMEA | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, contribution | 1,500,000 | 1,300,000 | 1,300,000 |
Employees under age 50 | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employees maximum 401(k) contribution, amount | 17,500 | ||
Employees aged 50 or older | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employees maximum 401(k) contribution, amount | $23,000 | ||
Employed at December 1, 2000 | EMEA | Minimum | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer contribution percentage of eligible compensation minimum | 8.50% | ||
Employees aged over 55 years | EMEA | Minimum | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer contribution percentage of eligible compensation maximum | 15.50% | ||
Employed subsequent to December 1, 2000 | EMEA | Maximum | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer contribution percentage of eligible compensation | 10.00% | ||
Employed subsequent to December 1, 2000 | EMEA | Minimum | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer contribution percentage of eligible compensation | 6.00% |
Components_of_Income_Before_In
Components of Income Before Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $47,963 | $47,640 | ($4,192) | ||||||||
Foreign | 50,806 | 45,519 | 69,460 | ||||||||
Income before income taxes | $69,700 | $25,165 | $13,646 | ($9,742) | $74,499 | $19,109 | $4,161 | ($4,610) | $98,769 | $93,159 | $65,268 |
Income_Tax_Expense_Benefit_Det
Income Tax Expense (Benefit) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal | |||||||||||
Current | $7,895 | $7,509 | $1,236 | ||||||||
Deferred | 7,021 | 9,491 | 56 | ||||||||
Total | 14,916 | 17,000 | 1,292 | ||||||||
State | |||||||||||
Current | 1,542 | 2,492 | 1,150 | ||||||||
Deferred | -2,397 | -1,687 | -142 | ||||||||
Total | -855 | 805 | 1,008 | ||||||||
Foreign | |||||||||||
Current | 13,335 | 9,717 | 9,258 | ||||||||
Deferred | 3,813 | 1,769 | 4,864 | ||||||||
Total | 17,148 | 11,486 | 14,122 | ||||||||
Income tax provision | $23,334 | $9,433 | $2,409 | ($3,967) | $24,108 | $5,347 | $2,280 | ($2,444) | $31,209 | $29,291 | $16,422 |
Summary_of_Differences_Between
Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Tax expense at federal rate of 35% | $34,569 | $32,606 | $22,844 | ||||||||
State income taxes, net of federal benefit | -544 | 675 | 655 | ||||||||
Change in valuation allowance | 3,521 | -1,615 | -2,680 | ||||||||
Foreign tax rate differential | -5,508 | -4,650 | -8,940 | ||||||||
Unrecognized tax benefit increase (decrease) | 65 | 488 | -1,665 | ||||||||
Tax effect of foreign operations | -104 | 5,906 | 5,311 | ||||||||
Acquisition Costs | 289 | 896 | 2,659 | ||||||||
Tax benefit of research & development | -3,446 | -4,001 | -1,749 | ||||||||
Other | 2,367 | -1,014 | -13 | ||||||||
Income tax provision | $23,334 | $9,433 | $2,409 | ($3,967) | $24,108 | $5,347 | $2,280 | ($2,444) | $31,209 | $29,291 | $16,422 |
Summary_of_Differences_Between1
Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Income (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 35.00% | 35.00% | 35.00% |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities Result from Differences in Timing of Recognition of Certain Income and Expense Items for Tax and Financial Accounting Purposes (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ||
Net operating loss carryforwards | $150,004 | $148,499 |
Tax credits | 43,804 | 32,231 |
Compensation | 24,486 | 24,902 |
Deferred revenue | 13,486 | 10,564 |
Tax basis in investments | 5,601 | 15,536 |
Other | 9,712 | 10,153 |
Gross deferred income tax assets | 247,093 | 241,885 |
Less: valuation allowance | -36,174 | -39,749 |
Net deferred income tax assets | 210,919 | 202,136 |
Deferred income tax liabilities: | ||
Depreciation and amortization | -129,825 | -117,444 |
Total deferred income tax liabilities | -129,825 | -117,444 |
Net deferred income taxes | 81,094 | 84,692 |
Deferred income taxes / liabilities included in the balance sheet are: | ||
Deferred income tax asset - current | 44,349 | 47,593 |
Deferred income tax asset - noncurrent | 50,187 | 48,852 |
Deferred income tax liability - current | -225 | -753 |
Deferred income tax liability - noncurrent | -13,217 | -11,000 |
Net deferred income taxes | $81,094 | $84,692 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ||||
Deferred tax assets tax credit carryforwards other | $5,000,000 | |||
Foreign tax credits carryforwards | 27,200,000 | |||
Unrecognized tax benefit | 14,780,000 | 14,996,000 | 13,079,000 | 4,012,000 |
Net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate | 13,000,000 | 13,200,000 | ||
Decrease in unrecognized tax benefits due to the expiration of statutes of limitations and the settlement of various audits | 5,000,000 | |||
Accrued interest and penalties related to income tax liabilities | 2,400,000 | 2,300,000 | ||
Aggregate amount of interest and penalties recorded in the statement of operations | 200,000 | 400,000 | -200,000 | |
Undistributed earning of foreign subsidiaries | 212,100,000 | |||
Effects of retroactive changes in tax law | 1,400,000 | |||
Decrease in deferred tax assets valuation allowance | 3,600,000 | |||
Domestic Tax Authority | ||||
Income Taxes [Line Items] | ||||
Tax credits expiration year | 2020 | |||
General business tax credit carryforwards | 10,300,000 | |||
Deferred tax assets operating loss carry forwards subject to expiration | 358,100,000 | |||
Deferred tax assets operating loss carry forwards expiration year | 2017 | |||
Domestic Tax Authority | Earliest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Tax years open for audit | 2010 | |||
Domestic Tax Authority | Latest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Tax years open for audit | 2011 | |||
Foreign Entities | ||||
Income Taxes [Line Items] | ||||
Foreign tax credits carryforwards | 32,900,000 | |||
Valuation allowance against tax credit | 9,200,000 | |||
Tax credits expiration year | 2015 | |||
Deferred tax assets operating loss carry forwards | 70,600,000 | |||
Deferred tax assets operating loss carry forwards not subject to expiration | 60,600,000 | |||
Deferred tax assets operating loss carry forwards not subject to expiration, expiration period | 10 years | |||
Valuation allowance against the tax benefit associated with NOLs | $6,700,000 | |||
Foreign Entities | Earliest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Tax years open for audit | 2002 | |||
Foreign Entities | Latest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Tax years open for audit | 2013 | |||
India Tax Authority | ||||
Income Taxes [Line Items] | ||||
Income tax examination description | The Company's Indian income tax returns covering fiscal years 2002 through 2007 and 2010 through 2012 are under audit by the Indian tax authority. |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Balance of unrecognized tax benefits at beginning of year | $14,996 | $13,079 | $4,012 |
Increases for tax positions of prior years | 84 | 1,560 | 10,729 |
Decreases for tax positions of prior years | -412 | -327 | -4 |
Increases for tax positions established for the current period | 491 | 1,739 | 49 |
Decreases for settlements with taxing authorities | -61 | -27 | |
Reductions resulting from lapse of applicable statute of limitation | -239 | -901 | -1,697 |
Adjustment resulting from foreign currency translation | -140 | -93 | 17 |
Balance of unrecognized tax benefits at end of year | $14,780 | $14,996 | $13,079 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases expiration date | 31-Oct-28 | ||
Total operating lease expense | $26.70 | $30.90 | $26.50 |
Aggregate_Minimum_Operating_Le
Aggregate Minimum Operating Lease Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases | |
2015 | $17,315 |
2016 | 15,959 |
2017 | 12,376 |
2018 | 10,716 |
2019 | 9,050 |
Thereafter | 28,234 |
Total minimum lease payments | $93,650 |
Activity_within_Accumulated_Ot
Activity within Accumulated Other Comprehensive Loss (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | ($23,315) | ($14,031) | ($17,261) |
Other comprehensive income (loss) | 3,432 | -9,284 | 4,787 |
Reclassification of unrealized gain to a realized gain on available-for-sale securities | -1,557 | ||
Ending balance | -19,883 | -23,315 | -14,031 |
Unrealized gain on available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 594 | ||
Other comprehensive income (loss) | 22,977 | 963 | |
Reclassification of unrealized gain to a realized gain on available-for-sale securities | -1,557 | ||
Ending balance | 22,977 | ||
Foreign currency translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -23,315 | -14,031 | -17,855 |
Other comprehensive income (loss) | -19,545 | -9,284 | 3,824 |
Ending balance | ($42,860) | ($23,315) | ($14,031) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Realized gain on available-for-sale securities | $1,557,000 | |
S1 Corporation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Realized gain on available-for-sale securities | 1,600,000 | |
Equity securities | S1 Corporation | Quoted prices in active markets for identical assets (Level 1) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Available-for-Sale Securities, Fair Value | $10,600,000 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jul. 10, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Revenues: | |||||||||||||||||||||||
License | $80,425 | $57,653 | $61,377 | $35,702 | $82,625 | $56,236 | $53,714 | $41,356 | $235,157 | $233,931 | $221,846 | ||||||||||||
Maintenance | 67,421 | 63,764 | 62,309 | 62,499 | 69,033 | 60,457 | 57,830 | 58,634 | 255,993 | 245,954 | 199,876 | ||||||||||||
Services | 29,811 | 28,194 | 24,991 | 22,588 | 40,952 | 30,240 | 26,964 | 23,929 | 105,584 | 122,085 | 131,536 | ||||||||||||
Hosting | 112,567 | 100,033 | 106,131 | 100,684 | 90,552 | 67,006 | 67,322 | 38,078 | 419,415 | 262,958 | 113,321 | ||||||||||||
Total revenues | 290,224 | 249,644 | 254,808 | 221,473 | 283,162 | 213,939 | 205,830 | 161,997 | 1,016,149 | 864,928 | 666,579 | ||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of license (1) | 6,499 | [1] | 5,433 | [1] | 6,897 | [1] | 5,736 | [1] | 7,349 | [1] | 5,888 | [1] | 6,169 | [1] | 5,918 | [1] | 24,565 | [1] | 25,324 | [1] | 23,592 | [1] | |
Cost of maintenance, services and hosting (1) | 104,390 | [1] | 105,319 | [1] | 112,595 | [1] | 107,887 | [1] | 93,123 | [1] | 80,948 | [1] | 82,573 | [1] | 61,871 | [1] | 430,191 | [1] | 318,515 | [1] | 202,052 | [1] | |
Research and development | 31,554 | 36,321 | 38,876 | 37,456 | 33,375 | 33,642 | 38,391 | 37,149 | 144,207 | 142,557 | 133,759 | ||||||||||||
Selling and marketing | 29,053 | 27,078 | 28,007 | 27,909 | 23,118 | 24,098 | 27,538 | 25,074 | 112,047 | 99,828 | 87,054 | ||||||||||||
General and administrative | 19,938 | 25,329 | 24,682 | 25,116 | 23,557 | 24,559 | 26,147 | 25,037 | 95,065 | 99,300 | 108,747 | ||||||||||||
Depreciation and amortization | 19,519 | 18,295 | 17,010 | 17,078 | 16,660 | 15,249 | 13,490 | 10,957 | 71,902 | 56,356 | 37,003 | ||||||||||||
Total operating expenses | 210,953 | 217,775 | 228,067 | 221,182 | 197,182 | 184,384 | 194,308 | 166,006 | 877,977 | 741,880 | 592,207 | ||||||||||||
Operating income | 79,271 | 31,869 | 26,741 | 291 | 85,980 | 29,555 | 11,522 | -4,009 | 138,172 | 123,048 | 74,372 | ||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | -10,818 | -10,416 | -9,329 | -9,175 | -9,818 | -7,453 | -6,053 | -3,897 | -39,738 | -27,221 | -10,417 | ||||||||||||
Interest income | 143 | 98 | 135 | 199 | 158 | 159 | 211 | 131 | 575 | 659 | 914 | ||||||||||||
Other, net | 1,104 | 3,614 | -3,901 | -1,057 | -1,821 | -3,152 | -1,519 | 3,165 | -240 | -3,327 | 399 | ||||||||||||
Total other income (expense) | -9,571 | -6,704 | -13,095 | -10,033 | -11,481 | -10,446 | -7,361 | -601 | -39,403 | -29,889 | -9,104 | ||||||||||||
Income (loss) before income taxes | 69,700 | 25,165 | 13,646 | -9,742 | 74,499 | 19,109 | 4,161 | -4,610 | 98,769 | 93,159 | 65,268 | ||||||||||||
Income tax expense (benefit) | 23,334 | 9,433 | 2,409 | -3,967 | 24,108 | 5,347 | 2,280 | -2,444 | 31,209 | 29,291 | 16,422 | ||||||||||||
Net income (loss) | $46,366 | $15,732 | $11,237 | ($5,775) | $50,391 | $13,762 | $1,881 | ($2,166) | $67,560 | $63,868 | $48,846 | ||||||||||||
Earnings (loss) per share | |||||||||||||||||||||||
Basic | $0.40 | $0.14 | $0.10 | ($0.05) | $0.43 | [2],[3] | $0.12 | [2],[3] | $0.02 | [2],[3] | ($0.02) | [2],[3] | $0.59 | $0.54 | [2],[3] | $0.42 | |||||||
Diluted | $0.40 | $0.14 | $0.10 | ($0.05) | $0.43 | [2],[3] | $0.12 | [2],[3] | $0.02 | [2],[3] | ($0.02) | [2],[3] | $0.58 | $0.53 | [2],[3] | $0.41 | |||||||
Stock split conversion ratio | 3 | ||||||||||||||||||||||
[1] | The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charges for depreciation. | ||||||||||||||||||||||
[2] | The sum of the earnings per share by quarter does not agree to the earnings per share for the year ended December 31, 2013 due to rounding. | ||||||||||||||||||||||
[3] | Earnings (loss) per share balances by quarter have been retroactively adjusted for the three-for-one stock split approved on July 10, 2014. |