Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 24, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ACIW | ||
Entity Registrant Name | ACI WORLDWIDE, INC. | ||
Entity Central Index Key | 935,036 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 117,305,774 | ||
Entity Public Float | $ 1,708,864,375 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 75,753 | $ 102,239 |
Receivables, net of allowances of $3,873 and $5,045, respectively | 268,162 | 219,116 |
Recoverable income taxes | 4,614 | 12,048 |
Prepaid expenses | 25,884 | 27,461 |
Other current assets | 33,578 | 21,637 |
Total current assets | 407,991 | 382,501 |
Noncurrent assets | ||
Property and equipment, net | 78,950 | 60,630 |
Software, net | 185,496 | 237,941 |
Goodwill | 909,691 | 913,261 |
Intangible assets, net | 203,634 | 256,925 |
Deferred income taxes, net | 77,479 | 90,872 |
Other noncurrent assets | 39,054 | 33,658 |
TOTAL ASSETS | 1,902,295 | 1,975,788 |
Current liabilities | ||
Accounts payable | 42,873 | 55,420 |
Employee compensation | 47,804 | 31,213 |
Current portion of long-term debt | 90,323 | 89,710 |
Deferred revenue | 105,191 | 128,559 |
Income taxes payable | 11,334 | 4,734 |
Other current liabilities | 78,841 | 75,225 |
Total current liabilities | 376,366 | 384,861 |
Noncurrent liabilities | ||
Deferred revenue | 49,863 | 42,081 |
Long-term debt | 653,595 | 834,449 |
Deferred income taxes, net | 26,349 | 28,067 |
Other noncurrent liabilities | 41,205 | 31,930 |
Total liabilities | 1,147,378 | 1,321,388 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity | ||
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at December 31, 2016 and 2015 | ||
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at December 31, 2016 and 2015 | 702 | 702 |
Additional paid-in capital | 600,344 | 561,379 |
Retained earnings | 545,731 | 416,851 |
Treasury stock, at cost, 23,188,258 and 21,491,285 shares at December 31, 2016 and 2015, respectively | (297,760) | (252,956) |
Accumulated other comprehensive loss | (94,100) | (71,576) |
Total stockholders' equity | 754,917 | 654,400 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,902,295 | $ 1,975,788 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 3,873 | $ 5,045 |
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 | $ 0.005 | $ 0.005 |
Common stock, shares authorized | 280,000,000 | 280,000,000 |
Common stock, shares issued | 140,525,055 | 140,525,055 |
Treasury stock, shares | 23,188,258 | 21,491,285 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Revenues | ||||||||||||||
License | $ 159,277 | $ 43,256 | $ 33,510 | $ 37,423 | $ 94,230 | $ 50,237 | $ 67,161 | $ 39,577 | $ 273,466 | $ 251,205 | $ 235,157 | |||
Maintenance | 58,072 | 57,741 | 60,332 | 57,331 | 63,000 | 59,262 | 60,141 | 59,492 | 233,476 | 241,895 | 255,993 | |||
Services | 24,262 | 19,809 | 23,823 | 19,576 | 34,371 | 25,842 | 23,110 | 23,497 | 87,470 | 106,820 | 105,584 | |||
Hosting | 101,119 | 96,169 | 102,265 | 111,736 | 117,036 | 103,360 | 115,410 | 110,251 | 411,289 | 446,057 | 419,415 | |||
Total revenues | 342,730 | 216,975 | 219,930 | 226,066 | 308,637 | 238,701 | 265,822 | 232,817 | 1,005,701 | 1,045,977 | 1,016,149 | |||
Operating expenses | ||||||||||||||
Cost of license | [1] | 7,043 | 5,253 | 4,610 | 5,439 | 5,810 | 5,387 | 5,939 | 6,109 | 22,345 | 23,245 | 24,565 | ||
Cost of maintenance, services and hosting | [1] | 103,786 | 95,014 | 110,774 | [2] | 112,995 | [2] | 111,285 | 104,272 | 120,484 | 113,013 | 422,569 | 449,054 | 430,191 |
Research and development | 37,665 | 42,210 | 46,421 | [2] | 43,604 | [2] | 33,285 | 36,123 | 39,425 | 37,091 | 169,900 | 145,924 | 144,207 | |
Selling and marketing | 29,421 | 29,874 | 28,795 | [2] | 29,992 | [2] | 40,747 | 28,451 | 31,298 | 28,911 | 118,082 | 129,407 | 112,047 | |
General and administrative | 21,639 | 31,390 | 34,520 | [2] | 26,068 | [2] | 20,552 | 20,284 | 25,008 | 21,575 | 113,617 | 87,419 | 95,065 | |
Gain on sale of CFS assets | 489 | (151,952) | (151,463) | |||||||||||
Depreciation and amortization | 22,833 | 22,098 | 21,382 | 23,208 | 22,985 | 20,298 | 20,004 | 19,693 | 89,521 | 82,980 | 71,902 | |||
Total operating expenses | 222,387 | 226,328 | 246,502 | [2] | 89,354 | [2] | 234,664 | 214,815 | 242,158 | 226,392 | 784,571 | 918,029 | 877,977 | |
Operating income | 120,343 | (9,353) | (26,572) | [2] | 136,712 | [2] | 73,973 | 23,886 | 23,664 | 6,425 | 221,130 | 127,948 | 138,172 | |
Other income (expense) | ||||||||||||||
Interest expense | (10,217) | (9,838) | (9,715) | (10,414) | (10,198) | (9,728) | (10,505) | (10,941) | (40,184) | (41,372) | (39,738) | |||
Interest income | 114 | 145 | 121 | 150 | 132 | 94 | 58 | 102 | 530 | 386 | 575 | |||
Other, net | (378) | 2,794 | 2,023 | (334) | (1,284) | 4,314 | 19,659 | 3,722 | 4,105 | 26,411 | (240) | |||
Total other income (expense) | (10,481) | (6,899) | (7,571) | (10,598) | (11,350) | (5,320) | 9,212 | (7,117) | (35,549) | (14,575) | (39,403) | |||
Income before income taxes | 109,862 | (16,252) | (34,143) | [2] | 126,114 | [2] | 62,623 | 18,566 | 32,876 | (692) | 185,581 | 113,373 | 98,769 | |
Income tax expense | 43,171 | (6,426) | (17,669) | [2] | 36,970 | [2] | 18,856 | 3,786 | 5,825 | (530) | 56,046 | 27,937 | 31,209 | |
Net income | $ 66,691 | $ (9,826) | $ (16,474) | [2] | $ 89,144 | [2] | $ 43,767 | $ 14,780 | $ 27,051 | $ (162) | $ 129,535 | $ 85,436 | $ 67,560 | |
Earnings per common share | ||||||||||||||
Basic | $ 0.57 | $ (0.08) | $ (0.14) | $ 0.75 | $ 0.37 | $ 0.13 | $ 0.23 | $ 0 | $ 1.10 | $ 0.73 | $ 0.59 | |||
Diluted | $ 0.56 | $ (0.08) | $ (0.14) | $ 0.74 | $ 0.36 | $ 0.12 | $ 0.23 | $ 0 | $ 1.09 | $ 0.72 | $ 0.58 | |||
Weighted average common shares outstanding | ||||||||||||||
Basic | 117,533 | 117,465 | 114,798 | |||||||||||
Diluted | 118,847 | 118,919 | 116,771 | |||||||||||
[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] | As previously discussed in Note 1, Nature of Business and Summary of Significant Accounting Policies, the Company adopted ASU 2016-09 during the year ended December 31, 2016. The Company elected to early adopt ASU 2016-09 in the third quarter of 2016, which requires it to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The impact of the adoption to the Company's previously reported quarterly results for the quarters ended March 31 and June 30, 2016 are reflected in the table above. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 129,535 | $ 85,436 | $ 67,560 |
Other comprehensive income (loss): | |||
Unrealized gain on available-for-sale securities | 1,488 | 22,977 | |
Reclassification of unrealized gain to a realized gain on available-for-sale securities | (24,465) | ||
Foreign currency translation adjustments | (22,524) | (28,716) | (19,545) |
Total other comprehensive income (loss) | (22,524) | (51,693) | 3,432 |
Comprehensive income | $ 107,011 | $ 33,743 | $ 70,992 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2013 | $ 543,694 | $ 698 | $ 542,697 | $ 263,855 | $ (240,241) | $ (23,315) |
Net Income | 67,560 | 67,560 | ||||
Other comprehensive income (loss) | 3,432 | 3,432 | ||||
Stock-based compensation | 11,045 | 11,045 | ||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 30,794 | (2,029) | 32,823 | |||
Repurchase of common stock | (70,000) | (70,000) | ||||
Repurchase of restricted stock and performance shares for tax withholdings | (5,120) | (5,120) | ||||
Ending Balance at Dec. 31, 2014 | 581,405 | 698 | 551,713 | 331,415 | (282,538) | (19,883) |
Net Income | 85,436 | 85,436 | ||||
Other comprehensive income (loss) | (51,693) | (51,693) | ||||
Stock-based compensation | 18,380 | 18,380 | ||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 20,142 | (14,089) | 34,231 | |||
Issuance of 476,750 shares under stock plan portion of PAY.ON acquisition agreement | 3 | (3) | ||||
Issuance of 227,917 shares of common stock for acquisition of PAY.ON | 5,379 | 1 | 5,378 | |||
Repurchase of restricted stock and performance shares for tax withholdings | (4,649) | (4,649) | ||||
Ending Balance at Dec. 31, 2015 | 654,400 | 702 | 561,379 | 416,851 | (252,956) | (71,576) |
Net Income | 129,535 | 129,535 | ||||
Other comprehensive income (loss) | (22,524) | (22,524) | ||||
Stock-based compensation | 43,613 | 43,613 | ||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 13,056 | (5,204) | 18,260 | |||
Repurchase of common stock | (60,089) | (60,089) | ||||
Repurchase of restricted stock and performance shares for tax withholdings | (2,975) | (2,975) | ||||
Cumulative effect of accounting change, ASU 2016-09 (Note 1) | (99) | 556 | (655) | |||
Ending Balance at Dec. 31, 2016 | $ 754,917 | $ 702 | $ 600,344 | $ 545,731 | $ (297,760) | $ (94,100) |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Issuance of shares of common stock for acquisition of PAY.ON | 227,917 | ||
Repurchase of common stock, shares | 3,020,926 | 3,578,427 | |
PAY.ON RSAs [Member] | |||
Issuance of shares under stock plan portion of PAY.ON acquisition agreement | 476,750 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net Income | $ 129,535 | $ 85,436 | $ 67,560 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation | 22,584 | 21,656 | 20,506 |
Amortization | 80,870 | 75,775 | 66,177 |
Amortization of deferred debt issuance costs | 5,567 | 6,244 | 5,877 |
Deferred income taxes | 17,702 | 19,328 | 8,437 |
Stock-based compensation expense | 43,613 | 18,380 | 11,045 |
Gain on sale of available-for-sale equity securities | (24,465) | ||
Gain on sale of CFS assets | (151,463) | ||
Other | 806 | 2,725 | 1,852 |
Changes in operating assets and liabilities, net of impact of acquisitions: | |||
Receivables | (76,460) | (11,355) | (30,643) |
Accounts payable | (13,920) | 8,557 | (3,422) |
Accrued employee compensation | 18,060 | (1,998) | (6,360) |
Current income taxes | 14,510 | (8,244) | 10,968 |
Deferred revenue | 3,015 | (4,513) | 15,738 |
Other current and noncurrent assets and liabilities | 5,411 | 468 | (6,902) |
Net cash flows from operating activities | 99,830 | 187,994 | 160,833 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (40,812) | (27,283) | (17,627) |
Purchases of software and distribution rights | (22,268) | (21,622) | (17,273) |
Proceeds from sale of available-for-sale equity securities | 35,311 | ||
Proceeds from sale of CFS assets | 199,481 | ||
Acquisition of businesses, net of cash acquired | 232 | (179,367) | (204,290) |
Other | (7,000) | (7,000) | (1,500) |
Net cash flows from investing activities | 129,633 | (199,961) | (240,690) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 2,987 | 3,104 | 2,780 |
Proceeds from exercises of stock options | 9,325 | 12,175 | 16,461 |
Repurchases of common stock | (60,089) | (70,000) | |
Repurchase of restricted stock and performance shares for tax withholdings | (2,975) | (4,649) | (5,120) |
Proceeds from revolving credit facility | 76,000 | 298,000 | 169,500 |
Proceeds from term portion of credit agreement | 150,000 | ||
Repayments of revolving credit facility | (166,000) | (164,000) | (125,500) |
Repayment of term portion of credit agreement | (95,293) | (87,352) | (57,449) |
Payments on other debt and capital leases | (14,376) | (12,638) | (8,344) |
Payment for debt issuance costs | (655) | (4,662) | |
Distribution to noncontrolling interest | (1,391) | ||
Net cash flows from financing activities | (251,076) | 44,640 | 66,275 |
Effect of exchange rate fluctuations on cash | (4,873) | (7,735) | (4,176) |
Net increase (decrease) in cash and cash equivalents | (26,486) | 24,938 | (17,758) |
Cash and cash equivalents, beginning of period | 102,239 | 77,301 | 95,059 |
Cash and cash equivalents, end of period | 75,753 | 102,239 | 77,301 |
Supplemental cash flow information | |||
Income taxes paid, net | 19,081 | 24,036 | 23,082 |
Interest paid | $ 35,053 | $ 35,183 | $ 33,269 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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: PAY.ON AG and its subsidiaries (collectively, “PAY.ON”) acquired during the year ended December 31, 2015, and 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. 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. 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. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition, Receivables and Deferred Revenue License. Revenue Recognition: Software 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, 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. 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, 2016 2015 2014 License $ 6,759 $ 7,797 $ 22,211 Maintenance 3,268 3,801 7,699 Services 268 321 13 Total $ 10,295 $ 11,919 $ 29,923 Maintenance. 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. 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 Revenue Recognition – Multiple-Element Arrangements, 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 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. Deferred Revenue. Receivables and Concentration of Credit Risk. December 31, 2016 2015 Billed Receivables $ 250,116 $ 192,045 Allowance for doubtful accounts (3,873 ) (5,045 ) Billed, net 246,243 187,000 Accrued Receivables 21,919 32,116 Receivables, net $ 268,162 $ 219,116 No customer accounted for more than 10% of the Company’s consolidated receivables balance as of December 31, 2016 or 2015. 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, 2016 2015 2014 Balance, beginning of period $ (5,045 ) $ (4,806 ) $ (4,459 ) Provision (increase) decrease (1,595 ) (2,425 ) (1,049 ) Amounts written off, net of recoveries 2,551 2,088 1,053 Foreign currency translation adjustments and other 216 98 (351 ) Balance, end of period $ (3,873 ) $ (5,045 ) $ (4,806 ) Provision (increases) decreases recorded in general and administrative expenses during the years ended December 31, 2016, 2015, and 2014, 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, 2016 2015 Settlement deposits $ 10,496 $ 5,357 Settlement receivables 14,327 7,961 Other 8,755 8,319 Total other current assets $ 33,578 $ 21,637 December 31, 2016 2015 Settlement payables $ 24,016 $ 11,250 Accrued interest 7,356 7,501 Vendor financed licenses 9,213 15,723 Royalties payable 7,197 4,910 Other 31,059 35,841 Total other current liabilities $ 78,841 $ 75,225 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, 2016 and 2015 were $270.0 million and $260.2 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, 2016 and 2015, net property and equipment consisted of the following (in thousands): Useful Lives 2016 2015 Computer and office equipment 3 to 5 years $ 105,692 $ 92,237 Leasehold improvements Lesser of useful life of improvement or 33,093 19,380 Furniture and fixtures 7 years 11,145 11,304 Building and improvements 7 - 30 years 10,391 10,340 Land Non depreciable 1,785 1,785 162,106 135,046 Less: accumulated depreciation and amortization (83,156 ) (74,416 ) Property and equipment, net $ 78,950 $ 60,630 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 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 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 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, 2016 and 2015, were as follows (in thousands): Americas EMEA Asia/ Pacific Total Gross Balance prior to December 31, 2014 $ 523,914 $ 240,303 $ 64,378 $ 828,595 Total impairment prior to December 31, 2014 (47,432 ) — — (47,432 ) Balance, December 31, 2014 476,482 240,303 64,378 781,163 Goodwill from acquisitions (1) 2,462 139,825 — 142,287 Foreign currency translation adjustments (1,803 ) (3,301 ) (5,085 ) (10,189 ) Balance, December 31, 2015 477,141 376,827 59,293 913,261 Goodwill from acquisitions (2) — 511 — 511 Foreign currency translation adjustments 256 (3,208 ) (1,129 ) (4,081 ) Balance, December 31, 2016 $ 477,397 $ 374,130 $ 58,164 $ 909,691 (1) Goodwill from acquisitions relates to the goodwill recorded for the acquisition of PAY.ON, as well as adjustments to goodwill related to the acquisition of ReD, as discussed in Note 2, Acquisitions (2) Goodwill from acquisitions relates to the adjustments to goodwill related to the acquisition of PAY.ON, as discussed in Note 2. 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 Stock-Based Compensation Plans Translation of Foreign Currencies The Company’s foreign subsidiaries typically use the local currency of the countries in which they are located as their functional currency. Their assets and liabilities are translated into U. S. dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average exchange rates during the period. Translation gains and losses are reflected in the consolidated financial statements as a component of accumulated other comprehensive income. 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. New Accounting Standards Recently Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs, Debt In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, In September 2015, the FASB issued ASU 2015-16, Business Combinations In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting Stock-based compensation excess tax benefit or deficiencies are now reflected in the consolidated statement of income as a component of the provision for income taxes, whereas they were previously recognized in equity. This amendment and additional amendments to the accounting for income taxes and minimum statutory withholding tax requirements had no impact on retained earnings. The consolidated statements of cash flows now present excess tax benefits as an operating activity. The Company has elected the retrospective transition method and as a result the consolidated statement of cash flows were adjusted as follows: a $4.9 million and $11.8 million increase to net cash provided by operating activities and a $4.9 million and $11.8 million increase to net cash used in financing activities for the years ended December 31, 2015 and 2014, respectively. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented as the Company has historically presented them as a financing activity. The Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. Under the modified retrospective transition method, the Company has recognized a cumulative-effect reduction to retained earnings of $0.7 million as of January 1, 2016, net of tax of $0.4 million. Recently Issued Accounting Standards Not Yet Effective In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ( ) Revenue Recognition During 2016, the Company began its detailed assessment of the impact of ASC 606. While the Company continues to evaluate the method of transition and the impact of the standard on its consolidated financial statements and related disclosures, at this time the Company cannot estimate the quantitative impact of adopting the new standard. However, the Company currently believes the most significant impacts relate to changes in the timing of recognition for software license revenues and sales commission expenses. The Company expects revenue related to maintenance and services to remain substantially unchanged and are performing a detailed analysis of the impact of the new standard on its hosting revenues. In particular, this analysis is focused on the nature of the Company’s promise to the customers of its hosted products and solutions, the pricing structures used in its hosted arrangements and whether certain practical expedients provided for within the new standard apply to these arrangements. As it relates to software license revenues, under ASC 606 the Company expects to recognize revenue in advance of billings for software license arrangements with extended payment terms as opposed to when payments become due and payable. Additionally, the Company expects that those same software license arrangements may contain a significant financing component which could result in a change in the amount of the contract value that is allocated to software license revenue. Additionally, because the requirement to have VSOE of fair value for undelivered elements is eliminated under the new standard, the Company expects the amounts allocated to software license, maintenance and services revenues for most software license arrangements to be recognized as each element is delivered or provided to the customer. Under current U.S. GAAP, when software license arrangements include PCS terms that fail to achieve VSOE of fair value the Company recognizes all revenues in the arrangement ratably over a longer service period. The Company is assessing whether or not sales commissions will be accounted for as incremental costs of obtaining a contract under the new standard. If we determine sales commissions meet the definition of incremental costs of obtaining a contract, the costs associated with sales commissions will likely be capitalized and expense recognized as the related goods or services are transferred to the customer. The Company currently recognizes sales commission expenses as they are incurred. In February 2016, the FASB issued ASU 2016-02, Leases In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments, In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions Fiscal 2015 Acquisitions PAY.ON On November 4 , Under the terms of the agreement, the Company acquired 100% of the equity of PAY.ON in a combination of cash and stock. The Company used approximately $181.0 million from its Revolving Credit Facility. See Note 5, Debt The purchase price of PAY.ON was comprised of (in thousands): Amount Cash payments to PAY.ON shareholders $ 180,994 Issuance of ACI common stock 5,379 Working capital adjustment (232 ) Total purchase price $ 186,141 The aggregate purchase price of PAY.ON was $186.1 million, after working capital adjustments in accordance with the terms of the acquisition agreement. The consideration paid by the Company has been allocated to specific assets and liabilities based on the relative fair value of all assets and liabilities. The Company incurred approximately $0.9 million in transaction related expenses during the year ended December 31, 2015, 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. Under the terms of the PAY.ON acquisition agreement, the Company issued 476,750 shares of ACI common stock to two key PAY.ON employees (“PAY.ON RSAs”) with a fair value of $11.3 million on the date of grant. The awards have requisite service periods of two years and vest in increments of 25% every six months from the date of the acquisition. The PAY.ON 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 the PAY.ON RSAs on a straight-line basis over the requisite service period. PAY.ON contributed approximately $16.5 million and $2.9 million in revenue and an operating loss of $17.1 million and $2.1 million for the years ended December 31, 2016 and 2015, respectively. In connection with the acquisition, the Company recorded the following amounts based upon its purchase price allocation as of December 31, 2016. (in thousands, except weighted average useful lives) Weighted-Average PAY.ON Current assets: Cash and cash equivalents $ 1,627 Receivables 2,649 Other current assets 502 Total current assets acquired 4,778 Noncurrent assets: Property and equipment 332 Goodwill 140,526 Software 5 years 34,150 Customer relationships 15 years 21,718 Trademarks 5 years 2,300 Other noncurrent assets 28 Total assets acquired 203,832 Current liabilities: Accounts payable 1,058 Employee compensation 681 Other current liabilities 866 Total current liabilities acquired 2,605 Noncurrent liabilities: Deferred income taxes 15,086 Total liabilities acquired 17,691 Net assets acquired $ 186,141 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 PAY.ON are not presented because they are not material. Fiscal 2014 Acquisitions 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 enhanced the Company’s Universal Payments strategy and further strengthened 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 5, Debt 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 $42.7 million and $17.9 million in revenue and $6.8 million and $1.9 million of operating income for the years ended December 31, 2015 and 2014, respectively, which includes severance expense related to the integration activities. 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. In connection with the acquisition, the Company recorded the following amounts based upon its purchase price allocation as of December 31, 2015. (in thousands, except weighted average useful lives) Weighted-Average Retail Current assets: Cash and cash equivalents $ 795 Receivables 10,106 Other current assets 10,282 Total current assets acquired 21,183 Noncurrent assets: Property and equipment 3,354 Goodwill 137,915 Software 5-7 years 33,136 Customer relationships 18 years 50,480 Trademarks 5 years 3,980 Deferred income taxes 565 Other noncurrent assets 416 Total assets acquired 251,029 Current liabilities: Accounts payable 4,624 Employee compensation 6,046 Other current liabilities 11,683 Total current liabilities acquired 22,353 Noncurrent liabilities: Deferred income taxes 23,427 Other noncurrent liabilities 164 Total liabilities acquired 45,944 Net assets acquired $ 205,085 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. |
Divestiture
Divestiture | 12 Months Ended |
Dec. 31, 2016 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Divestiture | 3. Divestiture Community Financial Services On March 3, 2016, the Company completed the sale of its Community Financial Services (“CFS”) related assets and liabilities, a part of the Americas segment, to Fiserv, Inc. (“Fiserv”) for $200.0 million. The sale of CFS, which was not strategic to the Company’s long-term strategy, is part of the Company’s ongoing efforts to expand as a provider of software products, Software as a Service-based, and platform-based solutions facilitating real-time electronic and eCommerce payments for large financial institutions, intermediaries, retailers, and billers worldwide. The sale included employee agreements and customer contracts as well as technology assets and intellectual property. For the year ended December 31, 2016, the Company recognized a net after-tax gain of $93.4 million on the sale of assets to Fiserv. This gain includes final post-closing adjustments pursuant to the definitive transaction agreement of $0.5 million recognized during the year ended December 31, 2016. The Company and Fiserv have also entered into a Transition Services Agreement (“TSA”), whereby the Company continues to perform certain functions on Fiserv’s behalf during a migration period not to exceed 18 months from the date of the sale. The TSA is meant to reimburse the Company for direct costs incurred in order to provide such functions, which are no longer generating revenue for the Company. |
Software and Other Intangible A
Software and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Software and Other Intangible Assets | 4. Software and Other Intangible Assets At December 31, 2016, software net book value totaled $185.5 million, net of $195.0 million of accumulated amortization. Included in this amount is software marketed for external sale of $52.3 million. The remaining software net book value of $133.2 million is comprised of various software that has been acquired or developed for internal use. At December 31, 2015, software net book value totaled $237.9 million, net of $158.9 million of accumulated amortization. Included in this amount is software marketed for external sale of $70.1 million. The remaining software net book value of $167.8 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, 2016, 2015, and 2014 totaled $13.9 million, $14.5 million, and $14.8 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, 2016, 2015, and 2014 totaled $45.7 million, $38.3 million, and $26.7 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, 2016 December 31, 2015 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 295,730 $ (96,356 ) $ 199,374 $ 336,075 $ (86,585 ) $ 249,490 Trademarks and tradenames 16,019 (11,759 ) 4,260 18,040 (10,605 ) 7,435 Purchased Contracts 10,429 (10,429 ) — 10,690 (10,690 ) — $ 322,178 $ (118,544 ) $ 203,634 $ 364,805 $ (107,880 ) $ 256,925 Other intangible assets amortization expense recorded during the years ended December 31, 2016, 2015, and 2014 totaled $21.2 million, $23.0 million, and $24.7 million, respectively. Based on capitalized intangible assets at December 31, 2016, 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 Amortization Other Intangible Assets Amortization 2017 $ 55,229 $ 19,040 2018 41,254 18,537 2019 32,871 18,006 2020 25,733 17,139 2021 17,848 16,677 Thereafter 12,561 114,235 Total $ 185,496 $ 203,634 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt As of December 31, 2016, the Company had $88.0 million, $365.3 million, and $300.0 million outstanding under its Revolving Credit Facility, Term Credit Facility, and Senior Notes, respectively, with up to $154.5 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended, and up to $7.5 million of unused borrowings under the Letter of Credit agreement. The amount of unused borrowings actually available varies in accordance with the terms of the agreement. Credit Agreement 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 $250.0 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 $650.0 million total under the five-year 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. The amendment extended the Credit Facility through August 20, 2018. 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, 2016 for the Credit Facility was 3.27%. 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. Subsequent Event On February 24, 2017, the Company entered into an amended and restated credit agreement (the “Amended Credit Agreement”) with a syndicate of financial institutions, as lenders, and Bank of America, N.A. (“BofA”), as Administrative Agent, providing for revolving loans, swingline loans, letters of credit, and a term loan. The Amended Credit Agreement’s terms and conditions are substantially the same as the Credit Agreement with the following exceptions: (i) the aggregate term loan commitment shall be $415.0 million, (ii) the aggregate revolving credit commitment shall be $500.0 million, and (iii) the maturity date is extended to February 24, 2022. Letter of Credit On February 29, 2016, the Company entered into a standby letter of credit (the “Letter of Credit”), under the terms of the Credit Agreement, for $25.0 million. On October 26, 2016, the Letter of Credit was renewed at $7.5 million, which expires on June 30, 2017. At any time the Company may request to close the Letter of Credit. The Letter of Credit reduces the maximum available borrowings under our Revolving Credit Facility to $242.5 million. Upon expiration of the Letter of Credit, maximum borrowings will return to $250.0 million. Senior Notes On August 20, 2013, the Company completed a $300.0 million offering of Senior Notes (“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. Maturities on long-term debt outstanding at December 31, 2016 are as follows (amounts in thousands): Fiscal year ending December 31, (in thousands) 2017 $ 95,293 2018 357,997 2019 — 2020 300,000 Total $ 753,290 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. On June 30, 2016, the Company requested and obtained a waiver to the application of the Consolidated Fixed Charge Coverage Ratio covenant in the Credit Agreement for the fiscal quarters ending June 30, 2016, September 30, 2016, and December 31, 2016. On November 2, 2016, the Company obtained an amendment to increase the Consolidated Net Leverage Ratio covenant in the Credit Agreement from 3.75 to 4.00 for the fiscal quarter ended September 30, 2016. As of December 31, 2016, and at all times during the period, the Company was in compliance with all other financial debt covenants. (in thousands) As of December 31, 2016 As of Term credit facility $ 365,290 $ 460,583 Revolving credit facility 88,000 178,000 6.375% Senior Notes, due August 2020 300,000 300,000 Debt issuance costs (9,372 ) (14,424 ) Total debt 743,918 924,159 Less current portion of term credit facility 95,293 95,293 Less current portion of debt issuance costs (4,970 ) (5,583 ) Total long-term debt $ 653,595 $ 834,449 In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, 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 through April 2016. During the year ended December 31, 2015, the Company financed multiple three-year license agreements for certain internally-used software for a total value of $20.4 million with payments due through November 2018. Of these amounts, $9.0 million and $20.2 million remained outstanding at December 31, 2016 and 2015, respectively. The Company recorded $7.3 million and $11.7 million in other current liabilities and $1.7 million and $8.5 million in other non-current liabilities in its consolidated balance sheets as of December 31, 2016 and 2015, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 6. Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures • 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. Debt 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 the Company’s Senior Notes was $309.8 million and $310.5 million at December 31, 2016 and 2015, respectively. Cash and Cash Equivalents The fair values of cash and cash equivalents approximate the carrying values due to the short period of time to maturity (Level 2 of the fair value hierarchy). 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, 2016 and 2015. |
Corporate Restructuring and Oth
Corporate Restructuring and Other Organizational Changes | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Corporate Restructuring and Other Organizational Changes | 7. Corporate Restructuring and Other Organizational Changes Employee Actions During the year ended December 31, 2016, the Company paid approximately $0.8 million of termination costs related to terminations in prior periods. The Company has no severance liability outstanding at December 31, 2016. During the year ended December 31, 2015, the Company reduced its headcount by 30 employees as a part of its integration of recent acquisitions. In connection with these actions, approximately $1.3 million of termination costs were recognized in general and administrative expense in the accompanying consolidated statements of income during the year ended December 31, 2015. The Company recognized $0.7 million of this expense in the Americas segment and $0.6 million in the EMEA segment during the year ended December 31, 2015. The Company paid approximately $2.9 million in restructuring severance costs during the year ended December 31, 2015 relating to expenses incurred in 2015 and prior. The unpaid severance liability as of December 31, 2015 totaled $0.8 million. 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. Lease Terminations During the year ended December 31, 2016, the Company ceased use of a portion of its leased facilities in Watford, U.K.; Providence, RI; Chantilly, VA; and West Hills, CA. As a result, the Company recorded additional expense of $5.0 million, which was recorded in general and administrative expenses in the accompanying consolidated statements of income for the year ended December 31, 2016. The components of corporate restructuring and other reorganization activities from the recent acquisitions are included in the following table (in thousands): Severance Facility Total Balance, December 31, 2014 $ 2,341 $ 452 $ 2,793 Restructuring charges (adjustments) incurred, net 1,339 — 1,339 Amounts paid during the period (2,872 ) (184 ) (3,056 ) Foreign currency translation adjustments (31 ) — (31 ) Balance, December 31, 2015 777 268 1,045 Restructuring charges (adjustments) incurred, net — 5,041 5,041 Amounts paid during the period (778 ) (654 ) (1,432 ) Foreign currency translation adjustments 1 (96 ) (95 ) Balance, December 31, 2016 $ — $ 4,559 $ 4,559 Of the $4.6 million facility closure liability, $1.1 million and $3.5 million is recorded in other current and noncurrent liabilities, respectively, in the accompanying consolidated balance sheet at December 31, 2016. |
Common Stock and Treasury Stock
Common Stock and Treasury Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Common Stock and Treasury Stock | 8. Common Stock and Treasury Stock As of September 12, 2012, the Company’s Board of Directors (“the Board”) had approved a stock repurchase program authorizing the Company, from time to time as market and business conditions warrant, to acquire up to $262.1 million of its common stock. On September 13, 2012, the Board 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 and again in February 2014, the Board approved an additional $100.0 million for the stock repurchase program for a total of an additional $200.0 million. The Company repurchased 3,020,926 shares for $60.1 million under the program during the year ended December 31, 2016. Under the program to date, the Company has repurchased 40,129,393 shares for approximately $455.9 million. The maximum remaining authorized for purchase under the stock repurchase program was approximately $78.2 million as of December 31, 2016. 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, 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. Treasury shares issued during the year ended December 31, 2015 included 1,146,199, 125,026, 548,671, and 978,365 shares issued pursuant to stock option exercises, RSA grants, LTIP Performance Shares vesting, and PBRSA grants, respectively. Treasury shares issued during the year ended December 31, 2016 included 797,140, 148,322, and 470,029 shares issued pursuant to stock option exercises, RSA grants, and Retention Restricted Share Award (“Retention RSA”) grants, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9. Earnings Per Share Earnings per share is computed in accordance with ASC 260, Earnings 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, 2016 2015 2014 Weighted average shares outstanding: Basic weighted average shares outstanding 117,533 117,465 114,798 Add: Dilutive effect of stock options 1,314 1,454 1,973 Diluted weighted average shares outstanding 118,847 118,919 116,771 For the years ended December 31, 2016, 2015, and 2014, respectively, 6.1 million, 3.7 million, and 2.9 million options to purchase shares and contingently issuable shares, were excluded from the diluted net income per share computation as their effect would be anti-dilutive. Common stock outstanding as of December 31, 2016 and 2015 was 117,336,797 and 119,033,770, respectively. |
Other, net
Other, net | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other, net | 10. Other, net Other, net is comprised of the following items (in thousands): Years Ended December 31, 2016 2015 2014 Foreign currency transaction gains (losses) $ 4,105 $ 1,946 $ (67 ) Realized gain on available-for-sale securities — 24,465 — Other — — (173 ) Total $ 4,105 $ 26,411 $ (240 ) The Company acquired a cost basis investment in Yodlee, Inc. (“Yodlee”) with the acquisition of S1 Corporation (“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. 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. During the year ended December 31, 2015, the Company sold all of its Yodlee stock holdings in a series of sales and realized a total gain of $24.5 million, which is included in other, net in the accompanying consolidated statements of income. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 11. 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, 2016 2015 2014 Revenues: Americas—United States $ 527,431 $ 628,013 $ 614,488 Americas—Other 116,718 82,548 87,279 EMEA 261,160 250,568 230,879 Asia/Pacific 100,392 84,848 83,503 $ 1,005,701 $ 1,045,977 $ 1,016,149 Depreciation and amortization expense: Americas $ 27,951 $ 24,966 $ 20,548 EMEA 3,830 3,670 4,126 Asia/Pacific 1,820 1,751 1,809 Corporate 69,853 67,044 60,200 $ 103,454 $ 97,431 $ 86,683 Stock-based compensation expense: Americas $ 5,005 $ 1,638 $ 2,910 EMEA 6,476 1,223 419 Asia/Pacific 605 36 249 Corporate 31,527 15,483 7,467 $ 43,613 $ 18,380 $ 11,045 Income before income taxes: Americas $ 206,689 $ 111,382 $ 143,379 EMEA 176,958 132,518 116,120 Asia/Pacific 62,422 41,658 38,853 Corporate (260,488 ) (172,185 ) (199,583 ) $ 185,581 $ 113,373 $ 98,769 December 31, 2016 2015 Long lived assets: Americas—United States $ 752,442 $ 915,030 Americas—Other 11,422 11,643 EMEA 580,110 502,785 Asia/Pacific 72,851 72,957 $ 1,416,825 $ 1,502,415 December 31, 2016 2015 Total assets: Americas—United States $ 991,687 $ 1,182,309 Americas—Other 32,365 33,492 EMEA 765,291 643,275 Asia/Pacific 112,952 116,712 $ 1,902,295 $ 1,975,788 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, 2016 2015 2014 Retail payments processing $ 415,729 $ 402,454 $ 406,023 Billers 255,540 241,949 235,039 Online banking and community financial services 125,580 219,698 227,659 Tools and infrastructure 63,923 42,783 40,427 Wholesale banking payments 37,040 41,545 37,879 Payment fraud management 30,130 27,373 36,235 Card and merchant management 77,759 70,175 32,887 Total $ 1,005,701 $ 1,045,977 $ 1,016,149 During the years ended December 31, 2016, 2015 and 2014, approximately 22%, 21%, and 21%, 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, 2016, 2015, and 2014. No single customer accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2016, 2015, and 2014. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | 12. 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, 2016, 2015, and 2014, totaled 188,453, 162,058, and 154,223, 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, 2016, 2015, and 2014 was approximately $0.5 million. 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 Board. Stock Incentive Plans – Active Plans 2016 Equity and Performance Incentive Plan On March 23, 2016, the Board approved the 2016 Equity and Performance Incentive Plan (the “2016 Incentive Plan”). The 2016 Incentive Plan is intended to meet the Company’s objective of balancing stockholder concerns about dilution with the need to provide appropriate incentives to achieve Company performance objectives. The 2016 Incentive Plan was adopted by the stockholders on June 14, 2016. Following the adoption of the 2016 Incentive Plan, the 2005 Equity and Performance Incentive Plan, as amended (the “2005 Incentive Plan”) was terminated. Termination of the 2005 Incentive Plan did not affect any equity awards outstanding under the 2005 Incentive Plan. The 2016 Incentive Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, performance awards, and other awards (“Awards”). Subject to adjustment in certain circumstances, the maximum number of shares of Common Stock that may be issued or transferred in connection with Awards granted under the 2016 Incentive Plan will be the sum of (i) 8,000,000 shares of Common Stock and (ii) any shares of Common Stock that are represented by options previously granted under the 2005 Incentive Plan which are forfeited, expire, or are canceled without delivery of common stock or which result in the forfeiture or relinquishment of Common Stock back to the Company. To the extent Awards granted under the 2016 Incentive Plan terminate, expire, are canceled without being exercised, are forfeited or lapse for any reason, the shares of Common Stock subject to such Award will again become available for grants under the 2016 Incentive Plan. The 2016 Incentive Plan expressly prohibits re-pricing stock options and appreciation rights. The 2016 Incentive Plan also, subject to certain limited exceptions, expressly requires a one-year vesting period for all stock options and appreciation rights. No eligible person selected by the Board to receive awards (“Participant”) will receive stock options, stock appreciation rights, restricted stock, restricted stock units, and other awards under the 2016 Incentive Plan, during any calendar year, for more than 3,000,000 shares of common stock. In addition, no Participant may receive performance shares or performance units having an aggregate value on the date of grant in excess of $9,000,000 during any calendar year. Each of the limits described above may be adjusted equitably to accommodate a change in the capital structure of the Company. Stock options granted pursuant to the 2016 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. Under the 2016 Incentive Plan, the term of the outstanding options may not exceed ten years nor be less than one year. Vesting of options is determined by the Compensation Committee of the Board of Directors, the administrator of the 2016 Incentive Plan, and can vary based upon the individual award agreements. In addition, outstanding options do not have dividend equivalent rights associated with them under the 2016 Incentive Plan. The Board may issue or transfer shares of common stock to Participants under a restricted stock grant for consideration or no consideration, and subject to restrictions, as determined by the Board. All restricted stock Awards will transfer ownership of such shares of restricted stock to the Participant and entitle the Participant to voting, dividend and other ownership rights, but the Participant’s ownership of the restricted shares shall be subject to substantial risk of forfeiture and restrictions on transfer. The Board may establish conditions under which restrictions will lapse over a period of time based upon the achievement of performance goals or according to such other criteria as the Board deems appropriate (the “Restriction Period”). An Award Agreement for restricted stock Awards may specify any Management Objectives that, if achieved, will result in the termination or early termination of the restrictions on the restricted shares including, without limitation, any minimum acceptable levels of achievement or formulas for determining the number of restricted shares on which the restrictions will terminate. The Board may award Participants “Performance Shares” or “Performance Units” (collectively, “Performance Awards”) which will become payable to a Participant upon the achievement of specified “Management Objectives”, which are measurable objectives established for Participants. Each Award Agreement for Performance Awards will specify: (i) the number of Performance Shares or Performance Units granted; (ii) the period of time established for the Participant to achieve the Management Objectives (the “Performance Period”); (iii) the Management Objectives and a minimum acceptable level of achievement as well as a formula for determining the number of Performance Shares or Performance 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 that the Board may deem appropriate. 2005 Equity and Performance Incentive Plan The Company had a 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. Supplemental 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. These options vest, if at all, based upon (i) tranche one—any time after the third anniversary date if the stock has traded at 133% of the exercise price for at least 20 consecutive trading days, (ii) tranche two—any time after the fourth anniversary date if the stock has traded at 167% of the exercise price for at least 20 consecutive trading days, and (iii) tranche three—any time after the fifth anniversary date if the stock has traded at 200% of the exercise price for at least 20 consecutive trading days. The employees must also remain employed with the Company as of the anniversary date in order for the options to vest. The exercise price of the supplemental stock options is the closing market price on the date the awards were granted. 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 years and vest in increments of 33%, respectively, on the anniversary of the grant date. Under each arrangement, stock is issued without direct cost to the employee. Restricted stock awards granted to our Board of Directors vest one year from grant or as of the next annual shareholders meeting, whichever is earlier. A summary of stock options issued under the various Stock Incentive Plans previously described and changes is as follows: Number of Weighted- Weighted- Aggregate Outstanding, December 31, 2013 7,408,821 $ 11.02 Granted 27,132 20.13 Exercised (2,036,558 ) 8.08 Forfeited (116,702 ) 17.80 Outstanding, December 31, 2014 5,282,693 12.06 Granted 2,055,514 19.12 Exercised (1,144,273 ) 10.62 Forfeited (394,265 ) 19.06 Expired (593 ) 20.51 Outstanding, December 31, 2015 5,799,076 14.37 Granted 2,284,500 17.92 Exercised (792,841 ) 11.69 Forfeited (446,845 ) 18.69 Expired (52,515 ) 20.44 Outstanding, December 31, 2016 6,791,375 $ 15.54 6.68 $ 20,777,320 Exercisable, December 31, 2016 3,650,356 $ 13.15 4.87 $ 20,245,847 The weighted-average grant date fair value of stock options granted during the years ended December 31, 2016, 2015, and 2014 was $5.59, $6.49, and $9.02, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2016, 2015, and 2014 was $6.8 million, $12.4 million, and $22.8 million, respectively. The fair value of options granted in the respective fiscal years are 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, 2016 2015 2014 Expected life (years) 5.9 5.9 5.9 Risk-free interest rate 1.2 % 1.4 % 1.8 % Expected volatility 29.7 % 32.1 % 45.2 % 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 U. S. Treasury zero coupon issued with a term equal to the expected life at the date of grant of the options. The expected dividend yield is zero as the Company has historically paid no dividends and does not anticipate dividends to be paid in the future. During the year ended December 31, 2016, the Company granted supplemental stock options with three tranches at a grant date fair value of $7.46, $7.06, and $6.50, respectively, per share. During the year ended December 31, 2015, the Company granted supplemental stock options with three tranches at a grant date fair value of $8.01, $7.56, and $7.00, respectively, per share. These options vest, if at all, based upon (i) tranche one—any time after the third anniversary date if the stock has traded at 133% of the exercise price for at least 20 consecutive trading days, (ii) tranche two—any time after the fourth anniversary date if the stock has traded at 167% of the exercise price for at least 20 consecutive trading days, and (iii) tranche three—any time after the fifth anniversary date if the stock has traded at 200% of the exercise price for at least 20 consecutive trading days. The employees must also remain employed with the Company as of the anniversary date in order for the options to vest. The exercise price of the supplemental stock options is the closing market price on the date the awards were granted. In order to determine the grant date fair value of the supplemental stock options, a Monte Carlo simulation model is used. With respect to options granted that vest based on the achievement of certain market conditions, the grant date fair value of such options was estimated using the following weighted-average assumptions: Years Ended December 31, 2016 2015 Expected life (years) 7.5 7.5 Risk-free interest rate 1.6 % 1.7 % Expected volatility 41.6 % 41.9 % Expected dividend yield — — Stock Incentive Plan – ORCC Corporation Stock Incentive Plan, as amended and restated In relation to the acquisition of Online Resources Corporation (“ORCC”), 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 acquisition 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 In-the-Money 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 Exercised (1,926 ) 13.92 Cancelled (23,550 ) 44.83 Outstanding as of December 31, 2015 21,036 29.76 Exercised (4,299 ) 13.92 Cancelled (2,634 ) 40.51 Outstanding as of December 31, 2016 14,103 $ 32.58 1.39 $ — Exercisable as of December 31, 2016 14,103 $ 32.58 1.39 $ — Long-term Incentive Program Performance Share Awards During the years ended December 31, 2016 and 2015, 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 or earnings before interest, income taxes, depreciation, and amortization (“EBITDA”) 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/EBITDA 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/EBITDA 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, 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. During the first quarter of the year ended December 31, 2015, the Company revised the expected attainment rate for the awards granted in fiscal 2011 from 100% to 91% due to changes in actual sales and operating income. During the third quarter of the year ended December 31, 2015, the Company revised the expected attainment rate for the awards granted in fiscal 2013 from 75% to 0% due to changes in forecasted sales and operating income. The expected attainment rate for the 2015 and 2016 grants remain at 100%. At December 31, 2015, the LTIPs granted in 2012 were earned by the employees. As the expected attainment rate was 0% for the LTIPs granted in 2012, no shares were issued in the first quarter of 2016. At December 31, 2016, the LTIPs granted in 2013 were earned by the employees. As the expected attainment rate was 0% for the LTIPs granted in 2013, no shares will be issued in the first quarter of 2017. A summary of the nonvested LTIP Performance Shares is as follows: Nonvested LTIP Performance Shares Number of Weighted- 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 Granted 1,025,863 19.12 Vested (548,671 ) 9.75 Forfeited (205,510 ) 19.39 Change in expected attainment for 2011 and 2013 grants (528,303 ) 19.44 Nonvested at December 31, 2015 889,295 19.13 Granted 1,059,428 17.92 Forfeited (210,667 ) 18.61 Nonvested at December 31, 2016 1,738,056 $ 18.45 During the years ended December 31, 2015 and 2014 the Company had 548,671 and 635,643 LTIP shares vest, respectively. The Company withheld 196,169 and 228,279 of those shares to pay the employees’ portion of the minimum payroll withholding taxes for the years ended December 31, 2015 and 2014, respectively. Restricted Share Awards During the years ended December 31, 2016, 2015, and 2014, pursuant to the Company’s 2016 Incentive Plan and 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. RSAs granted to our Board of Directors vest one year from grant or as of the next annual shareholders meeting, whichever is earlier. 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 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 Granted 125,026 23.82 Vested (158,973 ) 17.21 Nonvested at December 31, 2015 149,262 22.62 Granted 148,322 20.19 Vested (114,219 ) 22.64 Forfeited (11,257 ) 21.01 Nonvested at December 31, 2016 172,108 $ 20.62 During the years ended December 31, 2016, 2015, and 2014, the Company had 114,219, 158,973, and 66,670 RSA shares vested, respectively. The Company withheld 9,062, 25,235, and 26,461 of those respective shares to pay the employees’ portion of the minimum payroll withholding taxes. Performance-Based Restricted Share Awards During the year ended December 31, 2015, pursuant to the Company’s 2005 Incentive Plan, the Company granted PBRSAs. The PBRSA 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. These PBRSA awards are earned, if at all, based upon the achievement of performance goals over a specific period (the “Performance Period”) and completion of the service period. The PBRSAs granted on June 9, 2015 have a graded-vesting period of three years (33% vest each year) and are subject to performance targets based on the Company’s EBITDA. The first 33% of the PBRSAs issued vest subject to meeting the EBITDA target based for the year ending December 31, 2015. The remaining 66% of the PBRSAs issued, vest 33% at the end of year two and 33% at the end of year three, subject to meeting the EBITDA target for the year ending December 31, 2016. The PBRSAs granted on September 15, 2015 have a vesting period of 1.3 years and are subject to performance targets based on the Company’s EBITDA for the year ending December 31, 2016. In no event will any of the PBRSA shares become earned if the Company’s EBITDA is below a predetermined minimum threshold level at the conclusion of the Performance Period. Assuming achievement of the predetermined EBITDA threshold level, up to 150% of the PBRSA 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 will 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. Through December 31, 2015, the Company had accrued compensation costs assuming an attainment level of 100% for all PBRSA grants. The first tranche of the June 9 th A summary of nonvested PBRSAs as of December 31, 2016 and changes during the period are as follows: Nonvested Performance-Based Restricted Share Awards Number of Performance-Based Share Awards Weighted-Average Grant Nonvested as of December 31, 2014 — $ — Granted 978,365 23.45 Forfeited (39,502 ) 24.24 Nonvested as of December 31, 2015 938,863 23.42 Forfeited (67,397 ) 22.34 Vested (169,567 ) 24.41 Change in attainment for 2015 grants (18,232 ) 24.41 Nonvested as of December 31, 2016 683,667 $ 23.25 During the year ended December 31, 2016, 169,567 shares of the PBRSAs vested. The Company withheld 59,659 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. Retention Restricted Share Awards During the year ended December 31, 2016, pursuant to the Company’s 2005 Incentive Plan, the Company granted Retention RSAs. The Retention RSA awards granted to named executive officers have a requisite service period (vesting period) of 1.3 years and vest 50% on July 1, 2016 and 50% on July 1, 2017. Retention RSA awards granted to employees other than named executive officers have a vesting period of 0.8 years and vest 50% on July 1, 2016 and 50% on January 1, 2017. Under each agreement, stock is issued without direct cost to the employee. The Company estimates the fair value of the Retention RSAs based upon the market price of the Company’s stock at the date of grant. The Retention RSA grants provide for the payment of dividends on the Company’s common stock, if any, to the participant during the requisite service period and the participant has voting rights for each share of common stock. The Company recognizes compensation expense for Retention RSAs on a straight-line basis over the requisite service period. A summary of nonvested Retention RSAs as of December 31, 2016 and changes during the period are as follows: Nonvested Retention Restricted Share Awards Number of Weighted-Average Grant Nonvested as of December 31, 2015 — $ — Granted 473,069 17.89 Vested (226,526 ) 17.89 Forfeited (41,003 ) 17.89 Nonvested as of December 31, 2016 205,540 $ 17.89 During the year ended December 31, 2016, 226,526 shares of the Retention RSAs vested. The Company withheld 76,421 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. PAY.ON Restricted Share Awards Under the terms of the PAY.ON acquisition agreement, the Company issued PAY.ON RSAs to two key employees. The awards have requisite service periods of two years and vest in increments of 25% every six months from the date of the acquisition. The PAY.ON 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 the PAY.ON RSAs on a straight-line basis over the requisite service period. A summary of nonvested PAY.ON RSAs as of December 31, 2016 and changes during the period are as follows: Nonvested PAY.ON RSAs Number of Grant Date Nonvested at December 31, 2014 — $ — Granted 476,750 23.60 Nonvested at December 31, 2015 476,750 23.60 Vested (238,374 ) 23.60 Nonvested at December 31, 2016 238,376 $ 23.60 As of December 31, 2016, there were unrecognized compensation costs of $12.0 million related to nonvested stock options, $2.0 million related to the nonvested RSAs, $18.0 million related to the LTIP performance shares, $3.2 million related to nonvested PBRSAs, and $0.5 million related to nonvested Retention RSAs, which the Company expects to recognize over weighted-average periods of 1.9 years, 1.3 years, 2.0 years, 1.1 years, and 0.5 years, respectively. The Company recorded stock-based compensation expenses recognized under ASC 718 during the years ended December 31, 2016, 2015, and 2014 related to stock options, LTIP Performance Shares, RSAs, PBRSAs, and the ESPP of $43.6 million, $18.4 million, and $11.0 million, respectively, with corresponding tax benefits of $14.3 million, $6.9 million, and $4.2 million, respectively. 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. The Company recognizes compensation costs for stock option awards that vest with service and market-based conditions on a straight-line basis over the longer of the requisite service period or the estimated period to meet the defined market-based condition. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 13. 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 $18,000 (for employees who are under the age of 50 on December 31, 2016) or a maximum of $24,000 (for employees aged 50 or older on December 31, 2016). 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, 2016, 2015 and 2014, was $5.5 million, $6.1 million, and $6.0 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, 2016, 2015, and 2014 was $1.7 million, $1.8 million, and $1.5 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes For financial reporting purposes, income before income taxes includes the following components (in thousands): Years Ended December 31, 2016 2015 2014 United States $ 134,740 $ 52,563 $ 47,963 Foreign 50,841 60,810 50,806 Total $ 185,581 $ 113,373 $ 98,769 The expense (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2016 2015 2014 Federal Current $ 14,108 $ (6,889 ) $ 7,895 Deferred 19,034 18,024 7,021 Total 33,142 11,135 14,916 State Current 12,565 379 1,542 Deferred (2,502 ) (4,096 ) (2,397 ) Total 10,063 (3,717 ) (855 ) Foreign Current 11,671 15,117 13,335 Deferred 1,170 5,402 3,813 Total 12,841 20,519 17,148 Total $ 56,046 $ 27,937 $ 31,209 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, 2016 2015 2014 Tax expense at federal rate of 35% $ 64,953 $ 39,680 $ 34,569 State income taxes, net of federal benefit 7,060 (2,462 ) (544 ) Change in valuation allowance (8,524 ) (9,066 ) 3,521 Foreign tax rate differential (11,830 ) (5,710 ) (5,508 ) Unrecognized tax benefit increase 1,045 2,977 65 Tax effect of foreign operations 5,988 261 (104 ) Acquisition costs 28 — 289 Tax benefit of research & development (1,088 ) (871 ) (3,446 ) Other (1,586 ) 3,128 2,367 Income tax provision $ 56,046 $ 27,937 $ 31,209 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, 2016 are Ireland, South Africa, and the 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, 2015 are Ireland, Netherlands, South Africa, and the 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, 2014 are Ireland, South Africa, and the 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, 2016 2015 Deferred income tax assets: Net operating loss carryforwards $ 65,351 $ 112,193 Tax credits 25,173 40,614 Compensation 39,340 25,752 Deferred revenue 27,303 25,287 Other 6,279 8,346 Gross deferred income tax assets 163,446 212,192 Less: valuation allowance (9,659 ) (18,742 ) Net deferred income tax assets $ 153,787 $ 193,450 Deferred income tax liabilities: Depreciation and amortization $ (102,657 ) $ (130,645 ) Total deferred income tax liabilities (102,657 ) (130,645 ) Net deferred income taxes $ 51,130 $ 62,805 Deferred income taxes / liabilities included in the balance sheet are: Deferred income tax asset—noncurrent $ 77,479 $ 90,872 Deferred income tax liability—noncurrent (26,349 ) (28,067 ) Net deferred income taxes $ 51,130 $ 62,805 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, 2016, the Company decreased its valuation allowance by $9.1 million which relates primarily to a reduction in valuation allowance on U.S. foreign tax credits. At December 31, 2016, the Company had domestic federal tax net operating losses (“NLs”) of $139.7 million which will begin to expire in 2017. The Company had deferred tax asset equal to $6.4 million related to domestic state tax NOLs which will begin to expire in 2017. The Company does not have any valuation allowance against the federal tax NOLs, but has provided a $5.9 million valuation allowance against the tax benefit associated with the state NOLs. The Company had foreign tax NOLs of $37.3 million, of which $35.9 million may be utilized over an indefinite life, with the remainder expiring over the next 10 years. The Company has provided a $1.2 million valuation allowance against the tax benefit associated with the foreign NOLs. The Company had U.S. foreign tax credit carryforwards at December 31, 2016 of $17.3 million, for which a $0.6 million valuation allowance has been provided. The U.S. foreign tax credits will begin to expire in 2021. The Company also had domestic federal and state general business credit carryforwards at December 31, 2016 of $11.9 million and $0.5 million, respectively, which will begin to expire in 2019 and 2022, respectively. The unrecognized tax benefit at December 31, 2016 and 2015 was $24.3 million and $21.1 million, respectively, of which $17.6 million and $8.2 million, respectively, are included in other noncurrent liabilities in the consolidated balance sheet. Of the total unrecognized tax benefit amounts at December 31, 2016 and 2015, $23.2 million and $20.0 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): 2016 2015 2014 Balance of unrecognized tax benefits at beginning of year $ 21,079 $ 14,780 $ 14,996 Increases for tax positions of prior years 58 1,449 84 Decreases for tax positions of prior years (361 ) (47 ) (412 ) Increases for tax positions established for the current period 5,185 9,866 491 Decreases for settlements with taxing authorities (167 ) (594 ) — Reductions resulting from lapse of applicable statute of limitation (1,310 ) (4,218 ) (239 ) Adjustment resulting from foreign currency translation (206 ) (157 ) (140 ) Balance of unrecognized tax benefits at end of year $ 24,278 $ 21,079 $ 14,780 The Company files income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions, and many foreign jurisdictions. The United States, Australia, Canada, India, Ireland, Luxembourg, 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 United States, the Company’s tax returns for years following 2012 are open for audit. In the foreign jurisdictions, the tax returns open for audit generally vary by jurisdiction between 2002 and 2015. The Company’s Indian income tax returns covering fiscal years 2002 through 2006 and 2010 through 2014 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 $1.4 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, 2016 and 2015, $1.9 million and $2.2 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, 2016, 2015, and 2014 is $(0.2) million, $(0.1) million and $0.2 million, respectively. The undistributed earnings of the Company’s foreign subsidiaries of approximately $181.9 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies In accordance with ASC 460, Guarantees 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, 2016, 2015, and 2014 was $25.3 million, $26.6, million and $26.7 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 2017 $ 16,206 2018 16,073 2019 14,227 2020 11,252 2021 7,828 Thereafter 25,572 Total minimum lease payments $ 91,158 Legal Proceedings On September 23, 2015, a jury verdict was returned against ACI Worldwide Corp. (“ACI Corp.”), a subsidiary of the Company, for $43.8 million in connection with counterclaims brought by Baldwin Hackett & Meeks, Inc. (“BHMI”) in the District Court of Douglas County, Nebraska. On September 21, 2012, ACI Corp. had sued BHMI for misappropriation of ACI Corp.’s trade secrets. The jury found that ACI Corp. had not met its burden of proof regarding these claims. On March 6, 2013, BHMI asserted counterclaims for breach of a non-disclosure agreement, tortious interference and violation of the Nebraska anti-monopoly statute, all of which were alleged to arise out of ACI Corp.’s filing of its lawsuit. On September 23, 2015, the jury found for BHMI on its counterclaims and awarded $43.8 million in damages. On January 5, 2016, the court entered a judgment against ACI Corp. for $43.8 million for damages and $2.7 million for attorney fees and costs. ACI Corp. disagrees with the verdicts and judgment, and after the trial court denied ACI Corp.‘s post-judgment motions, on March 31, 2016, ACI Corp. perfected an appeal of the dismissal of its claims against BHMI and the judgment in favor of BHMI on its counterclaims, and oral arguments before the Nebraska Supreme Court are scheduled for March 3, 2017. While there necessarily can be no assurance of the result of the litigation, the Company has determined that it does not have a probable loss with respect to this litigation and that the amount of loss, if any, cannot be reasonably estimated. Accordingly, the Company has not accrued for this litigation. 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, 2016. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 16. Accumulated Other Comprehensive Loss Activity within accumulated other comprehensive loss for the three years ended December 31, 2016, 2015, and 2014 were as follows: Unrealized gain on Foreign Accumulated Balance at December 31, 2013 $ — $ (23,315 ) $ (23,315 ) Other comprehensive loss 22,977 (19,545 ) 3,432 Balance at December 31, 2014 22,977 (42,860 ) (19,883 ) Other comprehensive loss (22,977 ) (28,716 ) (51,693 ) Balance at December 31, 2015 — (71,576 ) (71,576 ) Other comprehensive loss — (22,524 ) (22,524 ) Balance at December 31, 2016 $ — $ (94,100 ) $ (94,100 ) |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 17. Quarterly Financial Data (unaudited) Quarter Ended Year Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 December 31, 2016 (in thousands, except per share amounts) Revenues: License $ 37,423 $ 33,510 $ 43,256 $ 159,277 $ 273,466 Maintenance 57,331 60,332 57,741 58,072 233,476 Services 19,576 23,823 19,809 24,262 87,470 Hosting 111,736 102,265 96,169 101,119 411,289 Total revenues 226,066 219,930 216,975 342,730 1,005,701 Operating expenses: Cost of license (1) 5,439 4,610 5,253 7,043 22,345 Cost of maintenance, services and hosting (1) (2) 112,995 110,774 95,014 103,786 422,569 Research and development (2) 43,604 46,421 42,210 37,665 169,900 Selling and marketing (2) 29,992 28,795 29,874 29,421 118,082 General and administrative (2) 26,068 34,520 31,390 21,639 113,617 Gain on sale of CFS assets (151,952 ) — 489 — (151,463 ) Depreciation and amortization 23,208 21,382 22,098 22,833 89,521 Total operating expenses (2) 89,354 246,502 226,328 222,387 784,571 Operating income (2) 136,712 (26,572 ) (9,353 ) 120,343 221,130 Other income (expense): Interest expense (10,414 ) (9,715 ) (9,838 ) (10,217 ) (40,184 ) Interest income 150 121 145 114 530 Other, net (334 ) 2,023 2,794 (378 ) 4,105 Total other income (expense) (10,598 ) (7,571 ) (6,899 ) (10,481 ) (35,549 ) Income (loss) before income taxes (2) 126,114 (34,143 ) (16,252 ) 109,862 185,581 Income tax expense (benefit) (2) 36,970 (17,669 ) (6,426 ) 43,171 56,046 Net income (loss) (2) $ 89,144 $ (16,474 ) $ (9,826 ) $ 66,691 $ 129,535 Earnings (loss) per share Basic $ 0.75 $ (0.14 ) $ (0.08 ) $ 0.57 $ 1.10 Diluted $ 0.74 $ (0.14 ) $ (0.08 ) $ 0.56 $ 1.09 (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) As previously discussed in Note 1, Nature of Business and Summary of Significant Accounting Policies Quarter Ended Year Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 December 31, 2015 (in thousands, except per share amounts) Revenues: License $ 39,577 $ 67,161 $ 50,237 $ 94,230 $ 251,205 Maintenance 59,492 60,141 59,262 63,000 241,895 Services 23,497 23,110 25,842 34,371 106,820 Hosting 110,251 115,410 103,360 117,036 446,057 Total revenues 232,817 265,822 238,701 308,637 1,045,977 Operating expenses: Cost of license (1) 6,109 5,939 5,387 5,810 23,245 Cost of maintenance, services and hosting (1) 113,013 120,484 104,272 111,285 449,054 Research and development 37,091 39,425 36,123 33,285 145,924 Selling and marketing 28,911 31,298 28,451 40,747 129,407 General and administrative 21,575 25,008 20,284 20,552 87,419 Depreciation and amortization 19,693 20,004 20,298 22,985 82,980 Total operating expenses 226,392 242,158 214,815 234,664 918,029 Operating income 6,425 23,664 23,886 73,973 127,948 Other income (expense): Interest expense (10,941 ) (10,505 ) (9,728 ) (10,198 ) (41,372 ) Interest income 102 58 94 132 386 Other, net 3,722 19,659 4,314 (1,284 ) 26,411 Total other income (expense) (7,117 ) 9,212 (5,320 ) (11,350 ) (14,575 ) Income (loss) before income taxes (692 ) 32,876 18,566 62,623 113,373 Income tax expense (benefit) (530 ) 5,825 3,786 18,856 27,937 Net income (loss) $ (162 ) $ 27,051 $ 14,780 $ 43,767 $ 85,436 Earnings (loss) per share Basic $ 0.00 $ 0.23 $ 0.13 $ 0.37 $ 0.73 Diluted $ 0.00 $ 0.23 $ 0.12 $ 0.36 $ 0.72 (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. |
Nature of Business and Summar26
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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: PAY.ON AG and its subsidiaries (collectively, “PAY.ON”) acquired during the year ended December 31, 2015, and 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. 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. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition, Receivables and Deferred Revenue | Revenue Recognition, Receivables and Deferred Revenue License. Revenue Recognition: Software 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, 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. 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, 2016 2015 2014 License $ 6,759 $ 7,797 $ 22,211 Maintenance 3,268 3,801 7,699 Services 268 321 13 Total $ 10,295 $ 11,919 $ 29,923 Maintenance. 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. 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 Revenue Recognition – Multiple-Element Arrangements, 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 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. Deferred Revenue. Receivables and Concentration of Credit Risk. December 31, 2016 2015 Billed Receivables $ 250,116 $ 192,045 Allowance for doubtful accounts (3,873 ) (5,045 ) Billed, net 246,243 187,000 Accrued Receivables 21,919 32,116 Receivables, net $ 268,162 $ 219,116 No customer accounted for more than 10% of the Company’s consolidated receivables balance as of December 31, 2016 or 2015. 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, 2016 2015 2014 Balance, beginning of period $ (5,045 ) $ (4,806 ) $ (4,459 ) Provision (increase) decrease (1,595 ) (2,425 ) (1,049 ) Amounts written off, net of recoveries 2,551 2,088 1,053 Foreign currency translation adjustments and other 216 98 (351 ) Balance, end of period $ (3,873 ) $ (5,045 ) $ (4,806 ) Provision (increases) decreases recorded in general and administrative expenses during the years ended December 31, 2016, 2015, and 2014, 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, 2016 2015 Settlement deposits $ 10,496 $ 5,357 Settlement receivables 14,327 7,961 Other 8,755 8,319 Total other current assets $ 33,578 $ 21,637 December 31, 2016 2015 Settlement payables $ 24,016 $ 11,250 Accrued interest 7,356 7,501 Vendor financed licenses 9,213 15,723 Royalties payable 7,197 4,910 Other 31,059 35,841 Total other current liabilities $ 78,841 $ 75,225 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, 2016 and 2015 were $270.0 million and $260.2 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, 2016 and 2015, net property and equipment consisted of the following (in thousands): Useful Lives 2016 2015 Computer and office equipment 3 to 5 years $ 105,692 $ 92,237 Leasehold improvements Lesser of useful life of improvement or 33,093 19,380 Furniture and fixtures 7 years 11,145 11,304 Building and improvements 7 - 30 years 10,391 10,340 Land Non depreciable 1,785 1,785 162,106 135,046 Less: accumulated depreciation and amortization (83,156 ) (74,416 ) Property and equipment, net $ 78,950 $ 60,630 |
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 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 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 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, 2016 and 2015, were as follows (in thousands): Americas EMEA Asia/ Pacific Total Gross Balance prior to December 31, 2014 $ 523,914 $ 240,303 $ 64,378 $ 828,595 Total impairment prior to December 31, 2014 (47,432 ) — — (47,432 ) Balance, December 31, 2014 476,482 240,303 64,378 781,163 Goodwill from acquisitions (1) 2,462 139,825 — 142,287 Foreign currency translation adjustments (1,803 ) (3,301 ) (5,085 ) (10,189 ) Balance, December 31, 2015 477,141 376,827 59,293 913,261 Goodwill from acquisitions (2) — 511 — 511 Foreign currency translation adjustments 256 (3,208 ) (1,129 ) (4,081 ) Balance, December 31, 2016 $ 477,397 $ 374,130 $ 58,164 $ 909,691 (1) Goodwill from acquisitions relates to the goodwill recorded for the acquisition of PAY.ON, as well as adjustments to goodwill related to the acquisition of ReD, as discussed in Note 2, Acquisitions (2) Goodwill from acquisitions relates to the adjustments to goodwill related to the acquisition of PAY.ON, as discussed in Note 2. 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 Stock-Based Compensation Plans |
Translation of Foreign Currencies | Translation of Foreign Currencies The Company’s foreign subsidiaries typically use the local currency of the countries in which they are located as their functional currency. Their assets and liabilities are translated into U. S. dollars at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average exchange rates during the period. Translation gains and losses are reflected in the consolidated financial statements as a component of accumulated other comprehensive income. 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. |
New Accounting Standards Recently Adopted | New Accounting Standards Recently Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs, Debt In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, In September 2015, the FASB issued ASU 2015-16, Business Combinations In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting Stock-based compensation excess tax benefit or deficiencies are now reflected in the consolidated statement of income as a component of the provision for income taxes, whereas they were previously recognized in equity. This amendment and additional amendments to the accounting for income taxes and minimum statutory withholding tax requirements had no impact on retained earnings. The consolidated statements of cash flows now present excess tax benefits as an operating activity. The Company has elected the retrospective transition method and as a result the consolidated statement of cash flows were adjusted as follows: a $4.9 million and $11.8 million increase to net cash provided by operating activities and a $4.9 million and $11.8 million increase to net cash used in financing activities for the years ended December 31, 2015 and 2014, respectively. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented as the Company has historically presented them as a financing activity. The Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. Under the modified retrospective transition method, the Company has recognized a cumulative-effect reduction to retained earnings of $0.7 million as of January 1, 2016, net of tax of $0.4 million. |
Recently Issued Accounting Standards Not Yet Effective | Recently Issued Accounting Standards Not Yet Effective In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ( ) Revenue Recognition During 2016, the Company began its detailed assessment of the impact of ASC 606. While the Company continues to evaluate the method of transition and the impact of the standard on its consolidated financial statements and related disclosures, at this time the Company cannot estimate the quantitative impact of adopting the new standard. However, the Company currently believes the most significant impacts relate to changes in the timing of recognition for software license revenues and sales commission expenses. The Company expects revenue related to maintenance and services to remain substantially unchanged and are performing a detailed analysis of the impact of the new standard on its hosting revenues. In particular, this analysis is focused on the nature of the Company’s promise to the customers of its hosted products and solutions, the pricing structures used in its hosted arrangements and whether certain practical expedients provided for within the new standard apply to these arrangements. As it relates to software license revenues, under ASC 606 the Company expects to recognize revenue in advance of billings for software license arrangements with extended payment terms as opposed to when payments become due and payable. Additionally, the Company expects that those same software license arrangements may contain a significant financing component which could result in a change in the amount of the contract value that is allocated to software license revenue. Additionally, because the requirement to have VSOE of fair value for undelivered elements is eliminated under the new standard, the Company expects the amounts allocated to software license, maintenance and services revenues for most software license arrangements to be recognized as each element is delivered or provided to the customer. Under current U.S. GAAP, when software license arrangements include PCS terms that fail to achieve VSOE of fair value the Company recognizes all revenues in the arrangement ratably over a longer service period. The Company is assessing whether or not sales commissions will be accounted for as incremental costs of obtaining a contract under the new standard. If we determine sales commissions meet the definition of incremental costs of obtaining a contract, the costs associated with sales commissions will likely be capitalized and expense recognized as the related goods or services are transferred to the customer. The Company currently recognizes sales commission expenses as they are incurred. In February 2016, the FASB issued ASU 2016-02, Leases In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments, In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment |
Fair Value of Financial Instruments | ASC 820, Fair Value Measurements and Disclosures • 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 | Earnings per share is computed in accordance with ASC 260, Earnings per Share |
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 Summar27
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 License $ 6,759 $ 7,797 $ 22,211 Maintenance 3,268 3,801 7,699 Services 268 321 13 Total $ 10,295 $ 11,919 $ 29,923 |
Receivables and Concentration of Credit Risk | Receivables and Concentration of Credit Risk. December 31, 2016 2015 Billed Receivables $ 250,116 $ 192,045 Allowance for doubtful accounts (3,873 ) (5,045 ) Billed, net 246,243 187,000 Accrued Receivables 21,919 32,116 Receivables, net $ 268,162 $ 219,116 |
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, 2016 2015 2014 Balance, beginning of period $ (5,045 ) $ (4,806 ) $ (4,459 ) Provision (increase) decrease (1,595 ) (2,425 ) (1,049 ) Amounts written off, net of recoveries 2,551 2,088 1,053 Foreign currency translation adjustments and other 216 98 (351 ) Balance, end of period $ (3,873 ) $ (5,045 ) $ (4,806 ) |
Components of Other Current Assets and Other Current Liabilities | Other Current Assets and Other Current Liabilities December 31, 2016 2015 Settlement deposits $ 10,496 $ 5,357 Settlement receivables 14,327 7,961 Other 8,755 8,319 Total other current assets $ 33,578 $ 21,637 December 31, 2016 2015 Settlement payables $ 24,016 $ 11,250 Accrued interest 7,356 7,501 Vendor financed licenses 9,213 15,723 Royalties payable 7,197 4,910 Other 31,059 35,841 Total other current liabilities $ 78,841 $ 75,225 |
Property and Equipment Estimated Useful Lives | As of December 31, 2016 and 2015, net property and equipment consisted of the following (in thousands): Useful Lives 2016 2015 Computer and office equipment 3 to 5 years $ 105,692 $ 92,237 Leasehold improvements Lesser of useful life of improvement or 33,093 19,380 Furniture and fixtures 7 years 11,145 11,304 Building and improvements 7 - 30 years 10,391 10,340 Land Non depreciable 1,785 1,785 162,106 135,046 Less: accumulated depreciation and amortization (83,156 ) (74,416 ) Property and equipment, net $ 78,950 $ 60,630 |
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, 2016 and 2015, were as follows (in thousands): Americas EMEA Asia/ Pacific Total Gross Balance prior to December 31, 2014 $ 523,914 $ 240,303 $ 64,378 $ 828,595 Total impairment prior to December 31, 2014 (47,432 ) — — (47,432 ) Balance, December 31, 2014 476,482 240,303 64,378 781,163 Goodwill from acquisitions (1) 2,462 139,825 — 142,287 Foreign currency translation adjustments (1,803 ) (3,301 ) (5,085 ) (10,189 ) Balance, December 31, 2015 477,141 376,827 59,293 913,261 Goodwill from acquisitions (2) — 511 — 511 Foreign currency translation adjustments 256 (3,208 ) (1,129 ) (4,081 ) Balance, December 31, 2016 $ 477,397 $ 374,130 $ 58,164 $ 909,691 (1) Goodwill from acquisitions relates to the goodwill recorded for the acquisition of PAY.ON, as well as adjustments to goodwill related to the acquisition of ReD, as discussed in Note 2, Acquisitions (2) Goodwill from acquisitions relates to the adjustments to goodwill related to the acquisition of PAY.ON, as discussed in Note 2. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
PAY.ON | |
Purchase Price of Pay.ON | The purchase price of PAY.ON was comprised of (in thousands): Amount Cash payments to PAY.ON shareholders $ 180,994 Issuance of ACI common stock 5,379 Working capital adjustment (232 ) Total purchase price $ 186,141 |
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, 2016. (in thousands, except weighted average useful lives) Weighted-Average PAY.ON Current assets: Cash and cash equivalents $ 1,627 Receivables 2,649 Other current assets 502 Total current assets acquired 4,778 Noncurrent assets: Property and equipment 332 Goodwill 140,526 Software 5 years 34,150 Customer relationships 15 years 21,718 Trademarks 5 years 2,300 Other noncurrent assets 28 Total assets acquired 203,832 Current liabilities: Accounts payable 1,058 Employee compensation 681 Other current liabilities 866 Total current liabilities acquired 2,605 Noncurrent liabilities: Deferred income taxes 15,086 Total liabilities acquired 17,691 Net assets acquired $ 186,141 |
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, 2015. (in thousands, except weighted average useful lives) Weighted-Average Retail Current assets: Cash and cash equivalents $ 795 Receivables 10,106 Other current assets 10,282 Total current assets acquired 21,183 Noncurrent assets: Property and equipment 3,354 Goodwill 137,915 Software 5-7 years 33,136 Customer relationships 18 years 50,480 Trademarks 5 years 3,980 Deferred income taxes 565 Other noncurrent assets 416 Total assets acquired 251,029 Current liabilities: Accounts payable 4,624 Employee compensation 6,046 Other current liabilities 11,683 Total current liabilities acquired 22,353 Noncurrent liabilities: Deferred income taxes 23,427 Other noncurrent liabilities 164 Total liabilities acquired 45,944 Net assets acquired $ 205,085 |
Software and Other Intangible29
Software and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 December 31, 2015 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 295,730 $ (96,356 ) $ 199,374 $ 336,075 $ (86,585 ) $ 249,490 Trademarks and tradenames 16,019 (11,759 ) 4,260 18,040 (10,605 ) 7,435 Purchased Contracts 10,429 (10,429 ) — 10,690 (10,690 ) — $ 322,178 $ (118,544 ) $ 203,634 $ 364,805 $ (107,880 ) $ 256,925 |
Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Software and Other Intangible Assets | Based on capitalized intangible assets at December 31, 2016, 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 Amortization Other Intangible Assets Amortization 2017 $ 55,229 $ 19,040 2018 41,254 18,537 2019 32,871 18,006 2020 25,733 17,139 2021 17,848 16,677 Thereafter 12,561 114,235 Total $ 185,496 $ 203,634 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Maturities on Long-Term Debt Outstanding | Maturities on long-term debt outstanding at December 31, 2016 are as follows (amounts in thousands): Fiscal year ending December 31, (in thousands) 2017 $ 95,293 2018 357,997 2019 — 2020 300,000 Total $ 753,290 |
Carrying Value of Debt | (in thousands) As of December 31, 2016 As of Term credit facility $ 365,290 $ 460,583 Revolving credit facility 88,000 178,000 6.375% Senior Notes, due August 2020 300,000 300,000 Debt issuance costs (9,372 ) (14,424 ) Total debt 743,918 924,159 Less current portion of term credit facility 95,293 95,293 Less current portion of debt issuance costs (4,970 ) (5,583 ) Total long-term debt $ 653,595 $ 834,449 |
Corporate Restructuring and O31
Corporate Restructuring and Other Organizational Changes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 Balance, December 31, 2014 $ 2,341 $ 452 $ 2,793 Restructuring charges (adjustments) incurred, net 1,339 — 1,339 Amounts paid during the period (2,872 ) (184 ) (3,056 ) Foreign currency translation adjustments (31 ) — (31 ) Balance, December 31, 2015 777 268 1,045 Restructuring charges (adjustments) incurred, net — 5,041 5,041 Amounts paid during the period (778 ) (654 ) (1,432 ) Foreign currency translation adjustments 1 (96 ) (95 ) Balance, December 31, 2016 $ — $ 4,559 $ 4,559 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Average Share Amounts used to Compute Both Basic and Diluted Earnings 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, 2016 2015 2014 Weighted average shares outstanding: Basic weighted average shares outstanding 117,533 117,465 114,798 Add: Dilutive effect of stock options 1,314 1,454 1,973 Diluted weighted average shares outstanding 118,847 118,919 116,771 |
Other, net (Tables)
Other, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other | Other, net is comprised of the following items (in thousands): Years Ended December 31, 2016 2015 2014 Foreign currency transaction gains (losses) $ 4,105 $ 1,946 $ (67 ) Realized gain on available-for-sale securities — 24,465 — Other — — (173 ) Total $ 4,105 $ 26,411 $ (240 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 Revenues: Americas—United States $ 527,431 $ 628,013 $ 614,488 Americas—Other 116,718 82,548 87,279 EMEA 261,160 250,568 230,879 Asia/Pacific 100,392 84,848 83,503 $ 1,005,701 $ 1,045,977 $ 1,016,149 Depreciation and amortization expense: Americas $ 27,951 $ 24,966 $ 20,548 EMEA 3,830 3,670 4,126 Asia/Pacific 1,820 1,751 1,809 Corporate 69,853 67,044 60,200 $ 103,454 $ 97,431 $ 86,683 Stock-based compensation expense: Americas $ 5,005 $ 1,638 $ 2,910 EMEA 6,476 1,223 419 Asia/Pacific 605 36 249 Corporate 31,527 15,483 7,467 $ 43,613 $ 18,380 $ 11,045 Income before income taxes: Americas $ 206,689 $ 111,382 $ 143,379 EMEA 176,958 132,518 116,120 Asia/Pacific 62,422 41,658 38,853 Corporate (260,488 ) (172,185 ) (199,583 ) $ 185,581 $ 113,373 $ 98,769 |
Selected Segment Financial Data, Assets | December 31, 2016 2015 Long lived assets: Americas—United States $ 752,442 $ 915,030 Americas—Other 11,422 11,643 EMEA 580,110 502,785 Asia/Pacific 72,851 72,957 $ 1,416,825 $ 1,502,415 December 31, 2016 2015 Total assets: Americas—United States $ 991,687 $ 1,182,309 Americas—Other 32,365 33,492 EMEA 765,291 643,275 Asia/Pacific 112,952 116,712 $ 1,902,295 $ 1,975,788 |
Revenues, by Product Line | Following are revenues, by product and services (in thousands): Years Ended December 31, 2016 2015 2014 Retail payments processing $ 415,729 $ 402,454 $ 406,023 Billers 255,540 241,949 235,039 Online banking and community financial services 125,580 219,698 227,659 Tools and infrastructure 63,923 42,783 40,427 Wholesale banking payments 37,040 41,545 37,879 Payment fraud management 30,130 27,373 36,235 Card and merchant management 77,759 70,175 32,887 Total $ 1,005,701 $ 1,045,977 $ 1,016,149 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Estimated Fair Value of Options Granted Pricing Model with Weighted-Average Assumptions | A summary of stock options issued under the various Stock Incentive Plans previously described and changes is as follows: Number of Weighted- Weighted- Aggregate Outstanding, December 31, 2013 7,408,821 $ 11.02 Granted 27,132 20.13 Exercised (2,036,558 ) 8.08 Forfeited (116,702 ) 17.80 Outstanding, December 31, 2014 5,282,693 12.06 Granted 2,055,514 19.12 Exercised (1,144,273 ) 10.62 Forfeited (394,265 ) 19.06 Expired (593 ) 20.51 Outstanding, December 31, 2015 5,799,076 14.37 Granted 2,284,500 17.92 Exercised (792,841 ) 11.69 Forfeited (446,845 ) 18.69 Expired (52,515 ) 20.44 Outstanding, December 31, 2016 6,791,375 $ 15.54 6.68 $ 20,777,320 Exercisable, December 31, 2016 3,650,356 $ 13.15 4.87 $ 20,245,847 |
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 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 Granted 125,026 23.82 Vested (158,973 ) 17.21 Nonvested at December 31, 2015 149,262 22.62 Granted 148,322 20.19 Vested (114,219 ) 22.64 Forfeited (11,257 ) 21.01 Nonvested at December 31, 2016 172,108 $ 20.62 |
Online Resources Corporation | |
Summary of Transaction 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 In-the-Money 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 Exercised (1,926 ) 13.92 Cancelled (23,550 ) 44.83 Outstanding as of December 31, 2015 21,036 29.76 Exercised (4,299 ) 13.92 Cancelled (2,634 ) 40.51 Outstanding as of December 31, 2016 14,103 $ 32.58 1.39 $ — Exercisable as of December 31, 2016 14,103 $ 32.58 1.39 $ — |
S1 Corporation 2003 Stock Incentive Plan [Member] | |
Summary of Nonvested Restricted Share Awards and Changes During Period | A summary of nonvested Retention RSAs as of December 31, 2016 and changes during the period are as follows: Nonvested Retention Restricted Share Awards Number of Weighted-Average Grant Nonvested as of December 31, 2015 — $ — Granted 473,069 17.89 Vested (226,526 ) 17.89 Forfeited (41,003 ) 17.89 Nonvested as of December 31, 2016 205,540 $ 17.89 |
Black-Scholes Option-Pricing Model [Member] | |
Estimated Fair Value of Options Granted Pricing Model with Weighted-Average Assumptions | The fair value of options granted in the respective fiscal years are 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, 2016 2015 2014 Expected life (years) 5.9 5.9 5.9 Risk-free interest rate 1.2 % 1.4 % 1.8 % Expected volatility 29.7 % 32.1 % 45.2 % Expected dividend yield — — — |
Monte Carlo Simulation [Member] | |
Estimated Fair Value of Options Granted Pricing Model with Weighted-Average Assumptions | With respect to options granted that vest based on the achievement of certain market conditions, the grant date fair value of such options was estimated using the following weighted-average assumptions: Years Ended December 31, 2016 2015 Expected life (years) 7.5 7.5 Risk-free interest rate 1.6 % 1.7 % Expected volatility 41.6 % 41.9 % Expected dividend yield — — |
LTIP Performance Shares [Member] | |
Summary of Nonvested Performance-Based Share Awards and Changes During Period | A summary of the nonvested LTIP Performance Shares is as follows: Nonvested LTIP Performance Shares Number of Weighted- 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 Granted 1,025,863 19.12 Vested (548,671 ) 9.75 Forfeited (205,510 ) 19.39 Change in expected attainment for 2011 and 2013 grants (528,303 ) 19.44 Nonvested at December 31, 2015 889,295 19.13 Granted 1,059,428 17.92 Forfeited (210,667 ) 18.61 Nonvested at December 31, 2016 1,738,056 $ 18.45 |
Performance-Based Restricted Share Awards [Member] | |
Summary of Nonvested Performance-Based Share Awards and Changes During Period | A summary of nonvested PBRSAs as of December 31, 2016 and changes during the period are as follows: Nonvested Performance-Based Restricted Share Awards Number of Performance-Based Share Awards Weighted-Average Grant Nonvested as of December 31, 2014 — $ — Granted 978,365 23.45 Forfeited (39,502 ) 24.24 Nonvested as of December 31, 2015 938,863 23.42 Forfeited (67,397 ) 22.34 Vested (169,567 ) 24.41 Change in attainment for 2015 grants (18,232 ) 24.41 Nonvested as of December 31, 2016 683,667 $ 23.25 |
Restricted share awards (RSAs) [Member] | PAY.ON | |
Summary of Nonvested Restricted Share Awards and Changes During Period | A summary of nonvested PAY.ON RSAs as of December 31, 2016 and changes during the period are as follows: Nonvested PAY.ON RSAs Number of Grant Date Nonvested at December 31, 2014 — $ — Granted 476,750 23.60 Nonvested at December 31, 2015 476,750 23.60 Vested (238,374 ) 23.60 Nonvested at December 31, 2016 238,376 $ 23.60 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 United States $ 134,740 $ 52,563 $ 47,963 Foreign 50,841 60,810 50,806 Total $ 185,581 $ 113,373 $ 98,769 |
Income Tax Expense (Benefit) | The expense (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2016 2015 2014 Federal Current $ 14,108 $ (6,889 ) $ 7,895 Deferred 19,034 18,024 7,021 Total 33,142 11,135 14,916 State Current 12,565 379 1,542 Deferred (2,502 ) (4,096 ) (2,397 ) Total 10,063 (3,717 ) (855 ) Foreign Current 11,671 15,117 13,335 Deferred 1,170 5,402 3,813 Total 12,841 20,519 17,148 Total $ 56,046 $ 27,937 $ 31,209 |
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, 2016 2015 2014 Tax expense at federal rate of 35% $ 64,953 $ 39,680 $ 34,569 State income taxes, net of federal benefit 7,060 (2,462 ) (544 ) Change in valuation allowance (8,524 ) (9,066 ) 3,521 Foreign tax rate differential (11,830 ) (5,710 ) (5,508 ) Unrecognized tax benefit increase 1,045 2,977 65 Tax effect of foreign operations 5,988 261 (104 ) Acquisition costs 28 — 289 Tax benefit of research & development (1,088 ) (871 ) (3,446 ) Other (1,586 ) 3,128 2,367 Income tax provision $ 56,046 $ 27,937 $ 31,209 |
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, 2016 2015 Deferred income tax assets: Net operating loss carryforwards $ 65,351 $ 112,193 Tax credits 25,173 40,614 Compensation 39,340 25,752 Deferred revenue 27,303 25,287 Other 6,279 8,346 Gross deferred income tax assets 163,446 212,192 Less: valuation allowance (9,659 ) (18,742 ) Net deferred income tax assets $ 153,787 $ 193,450 Deferred income tax liabilities: Depreciation and amortization $ (102,657 ) $ (130,645 ) Total deferred income tax liabilities (102,657 ) (130,645 ) Net deferred income taxes $ 51,130 $ 62,805 Deferred income taxes / liabilities included in the balance sheet are: Deferred income tax asset—noncurrent $ 77,479 $ 90,872 Deferred income tax liability—noncurrent (26,349 ) (28,067 ) Net deferred income taxes $ 51,130 $ 62,805 |
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): 2016 2015 2014 Balance of unrecognized tax benefits at beginning of year $ 21,079 $ 14,780 $ 14,996 Increases for tax positions of prior years 58 1,449 84 Decreases for tax positions of prior years (361 ) (47 ) (412 ) Increases for tax positions established for the current period 5,185 9,866 491 Decreases for settlements with taxing authorities (167 ) (594 ) — Reductions resulting from lapse of applicable statute of limitation (1,310 ) (4,218 ) (239 ) Adjustment resulting from foreign currency translation (206 ) (157 ) (140 ) Balance of unrecognized tax benefits at end of year $ 24,278 $ 21,079 $ 14,780 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2017 $ 16,206 2018 16,073 2019 14,227 2020 11,252 2021 7,828 Thereafter 25,572 Total minimum lease payments $ 91,158 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Activity within Accumulated Other Comprehensive Loss | Activity within accumulated other comprehensive loss for the three years ended December 31, 2016, 2015, and 2014 were as follows: Unrealized gain on Foreign Accumulated Balance at December 31, 2013 $ — $ (23,315 ) $ (23,315 ) Other comprehensive loss 22,977 (19,545 ) 3,432 Balance at December 31, 2014 22,977 (42,860 ) (19,883 ) Other comprehensive loss (22,977 ) (28,716 ) (51,693 ) Balance at December 31, 2015 — (71,576 ) (71,576 ) Other comprehensive loss — (22,524 ) (22,524 ) Balance at December 31, 2016 $ — $ (94,100 ) $ (94,100 ) |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarter Ended Year Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 December 31, 2016 (in thousands, except per share amounts) Revenues: License $ 37,423 $ 33,510 $ 43,256 $ 159,277 $ 273,466 Maintenance 57,331 60,332 57,741 58,072 233,476 Services 19,576 23,823 19,809 24,262 87,470 Hosting 111,736 102,265 96,169 101,119 411,289 Total revenues 226,066 219,930 216,975 342,730 1,005,701 Operating expenses: Cost of license (1) 5,439 4,610 5,253 7,043 22,345 Cost of maintenance, services and hosting (1) (2) 112,995 110,774 95,014 103,786 422,569 Research and development (2) 43,604 46,421 42,210 37,665 169,900 Selling and marketing (2) 29,992 28,795 29,874 29,421 118,082 General and administrative (2) 26,068 34,520 31,390 21,639 113,617 Gain on sale of CFS assets (151,952 ) — 489 — (151,463 ) Depreciation and amortization 23,208 21,382 22,098 22,833 89,521 Total operating expenses (2) 89,354 246,502 226,328 222,387 784,571 Operating income (2) 136,712 (26,572 ) (9,353 ) 120,343 221,130 Other income (expense): Interest expense (10,414 ) (9,715 ) (9,838 ) (10,217 ) (40,184 ) Interest income 150 121 145 114 530 Other, net (334 ) 2,023 2,794 (378 ) 4,105 Total other income (expense) (10,598 ) (7,571 ) (6,899 ) (10,481 ) (35,549 ) Income (loss) before income taxes (2) 126,114 (34,143 ) (16,252 ) 109,862 185,581 Income tax expense (benefit) (2) 36,970 (17,669 ) (6,426 ) 43,171 56,046 Net income (loss) (2) $ 89,144 $ (16,474 ) $ (9,826 ) $ 66,691 $ 129,535 Earnings (loss) per share Basic $ 0.75 $ (0.14 ) $ (0.08 ) $ 0.57 $ 1.10 Diluted $ 0.74 $ (0.14 ) $ (0.08 ) $ 0.56 $ 1.09 (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) As previously discussed in Note 1, Nature of Business and Summary of Significant Accounting Policies Quarter Ended Year Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 December 31, 2015 (in thousands, except per share amounts) Revenues: License $ 39,577 $ 67,161 $ 50,237 $ 94,230 $ 251,205 Maintenance 59,492 60,141 59,262 63,000 241,895 Services 23,497 23,110 25,842 34,371 106,820 Hosting 110,251 115,410 103,360 117,036 446,057 Total revenues 232,817 265,822 238,701 308,637 1,045,977 Operating expenses: Cost of license (1) 6,109 5,939 5,387 5,810 23,245 Cost of maintenance, services and hosting (1) 113,013 120,484 104,272 111,285 449,054 Research and development 37,091 39,425 36,123 33,285 145,924 Selling and marketing 28,911 31,298 28,451 40,747 129,407 General and administrative 21,575 25,008 20,284 20,552 87,419 Depreciation and amortization 19,693 20,004 20,298 22,985 82,980 Total operating expenses 226,392 242,158 214,815 234,664 918,029 Operating income 6,425 23,664 23,886 73,973 127,948 Other income (expense): Interest expense (10,941 ) (10,505 ) (9,728 ) (10,198 ) (41,372 ) Interest income 102 58 94 132 386 Other, net 3,722 19,659 4,314 (1,284 ) 26,411 Total other income (expense) (7,117 ) 9,212 (5,320 ) (11,350 ) (14,575 ) Income (loss) before income taxes (692 ) 32,876 18,566 62,623 113,373 Income tax expense (benefit) (530 ) 5,825 3,786 18,856 27,937 Net income (loss) $ (162 ) $ 27,051 $ 14,780 $ 43,767 $ 85,436 Earnings (loss) per share Basic $ 0.00 $ 0.23 $ 0.13 $ 0.37 $ 0.73 Diluted $ 0.00 $ 0.23 $ 0.12 $ 0.36 $ 0.72 (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. |
Nature of Business and Summar40
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Summary Of Significant Accounting Policies [Line Items] | ||||
Payments for partnership dissolved | $ 1,391 | |||
Percentage of receivables as of December 31, 2015, 2014 | No customer accounted for more than 10% of the Company's consolidated receivables balance as of December 31, 2016 or 2015. | |||
Amount of off balance sheet settlement funds | $ 270,000 | $ 260,200 | ||
Goodwill measurement period | 1 year | |||
Increase to net cash provided by operating activities | $ 99,830 | 187,994 | 160,833 | |
Increase to net cash used in financing activities | (251,076) | 44,640 | 66,275 | |
Cumulative-effect adjustment to retained earnings, net of tax | $ (99) | |||
Adjustments for New Accounting Pronouncement [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Increase to net cash provided by operating activities | 4,900 | 11,800 | ||
Increase to net cash used in financing activities | $ 4,900 | 11,800 | ||
Cumulative-effect adjustment to retained earnings, net of tax | $ 700 | |||
Cumulative-effect adjustment to retained earnings, tax | $ 400 | |||
Minimum | ||||
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 | |||
Software Acquired or Developed for Internal Use | Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Software Acquired or Developed for Internal Use | Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 10 years | |||
Cornastone Technology Investments (Proprietary) Limited | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Payments for partnership dissolved | $ 1,500 |
Nature of Business and Summar41
Nature of Business and Summary of Significant Accounting Policies - 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 ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue Recognition, Milestone Method [Line Items] | |||||||||||
License | $ 159,277 | $ 43,256 | $ 33,510 | $ 37,423 | $ 94,230 | $ 50,237 | $ 67,161 | $ 39,577 | $ 273,466 | $ 251,205 | $ 235,157 |
Maintenance | 58,072 | 57,741 | 60,332 | 57,331 | 63,000 | 59,262 | 60,141 | 59,492 | 233,476 | 241,895 | 255,993 |
Services | 24,262 | 19,809 | 23,823 | 19,576 | 34,371 | 25,842 | 23,110 | 23,497 | 87,470 | 106,820 | 105,584 |
Total revenues | $ 342,730 | $ 216,975 | $ 219,930 | $ 226,066 | $ 308,637 | $ 238,701 | $ 265,822 | $ 232,817 | 1,005,701 | 1,045,977 | 1,016,149 |
Vendor Specific Objective Evidence of Fair Value [Member] | |||||||||||
Revenue Recognition, Milestone Method [Line Items] | |||||||||||
License | 6,759 | 7,797 | 22,211 | ||||||||
Maintenance | 3,268 | 3,801 | 7,699 | ||||||||
Services | 268 | 321 | 13 | ||||||||
Total revenues | $ 10,295 | $ 11,919 | $ 29,923 |
Nature of Business and Summar42
Nature of Business and Summary of Significant Accounting Policies - Receivables and Concentration of Credit Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||||
Billed Receivables | $ 250,116 | $ 192,045 | ||
Allowance for doubtful accounts | (3,873) | (5,045) | $ (4,806) | $ (4,459) |
Billed, net | 246,243 | 187,000 | ||
Accrued Receivables | 21,919 | 32,116 | ||
Receivables, net | $ 268,162 | $ 219,116 |
Nature of Business and Summar43
Nature of Business and Summary of Significant Accounting Policies - Activity in Allowance for Doubtful Accounts Receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation and Qualifying Accounts [Abstract] | |||
Balance, beginning of period | $ (5,045) | $ (4,806) | $ (4,459) |
Provision (increase) decrease | (1,595) | (2,425) | (1,049) |
Amounts written off, net of recoveries | 2,551 | 2,088 | 1,053 |
Foreign currency translation adjustments and other | 216 | 98 | (351) |
Balance, end of period | $ (3,873) | $ (5,045) | $ (4,806) |
Nature of Business and Summar44
Nature of Business and Summary of Significant Accounting Policies - Components of Other Current Assets and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Other | $ 8,755 | $ 8,319 |
Total other current assets | 33,578 | 21,637 |
Settlement payables | 24,016 | 11,250 |
Accrued interest | 7,356 | 7,501 |
Vendor financed licenses | 9,213 | 15,723 |
Royalties payable | 7,197 | 4,910 |
Other | 31,059 | 35,841 |
Total other current liabilities | 78,841 | 75,225 |
Settlement deposits [Member] | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Other assets settlement | 10,496 | 5,357 |
Settlement receivables [Member] | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Other assets settlement | $ 14,327 | $ 7,961 |
Nature of Business and Summar45
Nature of Business and Summary of Significant Accounting Policies - Net Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 162,106 | $ 135,046 |
Less: accumulated depreciation and amortization | (83,156) | (74,416) |
Property and equipment, net | 78,950 | 60,630 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 105,692 | 92,237 |
Computer and office equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | 3 years | |
Computer and office equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | 5 years | |
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 | $ 33,093 | 19,380 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | 7 years | |
Property and equipment, gross | $ 11,145 | 11,304 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 10,391 | 10,340 |
Building and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | 7 years | |
Building and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | 30 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | Non depreciable | |
Property and equipment, gross | $ 1,785 | $ 1,785 |
Nature of Business and Summar46
Nature of Business and Summary of Significant Accounting Policies - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Goodwill [Line Items] | ||||||
Gross Balance prior to the end of year | $ 828,595 | |||||
Total impairment, beginning of period | (47,432) | |||||
Beginning Balance | $ 913,261 | $ 781,163 | ||||
Goodwill from acquisitions | 511 | [1] | 142,287 | [2] | ||
Foreign currency translation adjustments | (4,081) | (10,189) | ||||
Ending Balance | 909,691 | 913,261 | ||||
Americas Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Gross Balance prior to the end of year | 523,914 | |||||
Total impairment, beginning of period | (47,432) | |||||
Beginning Balance | 477,141 | 476,482 | ||||
Goodwill from acquisitions | [2] | 2,462 | ||||
Foreign currency translation adjustments | 256 | (1,803) | ||||
Ending Balance | 477,397 | 477,141 | ||||
EMEA Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Gross Balance prior to the end of year | 240,303 | |||||
Beginning Balance | 376,827 | 240,303 | ||||
Goodwill from acquisitions | 511 | [1] | 139,825 | [2] | ||
Foreign currency translation adjustments | (3,208) | (3,301) | ||||
Ending Balance | 374,130 | 376,827 | ||||
Asia/Pacific Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Gross Balance prior to the end of year | $ 64,378 | |||||
Beginning Balance | 59,293 | 64,378 | ||||
Foreign currency translation adjustments | (1,129) | (5,085) | ||||
Ending Balance | $ 58,164 | $ 59,293 | ||||
[1] | Goodwill from acquisitions relates to the adjustments to goodwill related to the acquisition of PAY.ON, as discussed in Note 2. | |||||
[2] | Goodwill from acquisitions relates to the goodwill recorded for the acquisition of PAY.ON, as well as adjustments to goodwill related to the acquisition of ReD, as discussed in Note 2, Acquisitions. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Nov. 04, 2015 | Aug. 12, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||||||||||||||
Percentage of ownership interest acquired | 100.00% | 100.00% | 100.00% | |||||||||||||
Additional borrowing | $ 76,000 | $ 298,000 | $ 169,500 | |||||||||||||
Operating Income (loss) | $ 120,343 | $ (9,353) | $ (26,572) | $ 136,712 | $ 73,973 | $ 23,886 | $ 23,664 | $ 6,425 | $ 221,130 | $ 127,948 | $ 138,172 | |||||
Restricted share awards (RSAs) [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Issuance of ACI common stock | 148,322 | 125,026 | 106,275 | |||||||||||||
Awards granted requisite service period | 3 years | 3 years | 3 years | |||||||||||||
Revolving Credit Facility | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Additional borrowing | $ 181,000 | $ 60,500 | ||||||||||||||
Term Credit Facility [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Additional borrowing | 150,000 | |||||||||||||||
PAY.ON | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Total purchase price | $ 186,141 | $ 186,141 | ||||||||||||||
Acquisition related transaction expenses | $ 900 | |||||||||||||||
Revenue | 16,500 | 2,900 | ||||||||||||||
Operating Income (loss) | 17,100 | 2,100 | ||||||||||||||
Business acquisition cash paid | $ 180,994 | |||||||||||||||
PAY.ON | Restricted share awards (RSAs) [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Issuance of ACI common stock | 476,750 | |||||||||||||||
Fair value of shares on grant date | $ 11,300 | $ 11,300 | $ 11,300 | |||||||||||||
Awards granted requisite service period | 2 years | |||||||||||||||
PAY.ON | Restricted share awards (RSAs) [Member] | Vest In Every Six Months | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percentage of award vesting increment for every six month | 25.00% | |||||||||||||||
Retail Decisions [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Acquisition related transaction expenses | $ 2,700 | |||||||||||||||
Revenue | 42,700 | 17,900 | ||||||||||||||
Operating Income (loss) | $ 6,800 | $ 1,900 | ||||||||||||||
Business acquisition cash paid | $ 205,100 | |||||||||||||||
[1] | As previously discussed in Note 1, Nature of Business and Summary of Significant Accounting Policies, the Company adopted ASU 2016-09 during the year ended December 31, 2016. The Company elected to early adopt ASU 2016-09 in the third quarter of 2016, which requires it to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The impact of the adoption to the Company's previously reported quarterly results for the quarters ended March 31 and June 30, 2016 are reflected in the table above. |
Acquisitions - Purchase Price o
Acquisitions - Purchase Price of PAY.ON (Detail) - PAY.ON - USD ($) $ in Thousands | Nov. 04, 2015 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||
Cash payments to PAY.ON shareholders | $ 180,994 | |
Issuance of ACI common stock | 5,379 | |
Working capital adjustment | (232) | |
Total purchase price | $ 186,141 | $ 186,141 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation of PAY.ON (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 909,691 | $ 913,261 | $ 781,163 |
PAY.ON | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 1,627 | ||
Receivables | 2,649 | ||
Other current assets | 502 | ||
Total current assets acquired | 4,778 | ||
Property and equipment | 332 | ||
Goodwill | 140,526 | ||
Other noncurrent assets | 28 | ||
Total assets acquired | 203,832 | ||
Accounts payable | 1,058 | ||
Employee compensation | 681 | ||
Other current liabilities | 866 | ||
Total current liabilities acquired | 2,605 | ||
Deferred income taxes | 15,086 | ||
Total liabilities acquired | 17,691 | ||
Net assets acquired | $ 186,141 | ||
Software | PAY.ON | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 5 years | ||
Amortizable intangible assets | $ 34,150 | ||
Customer relationships | PAY.ON | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 15 years | ||
Amortizable intangible assets | $ 21,718 | ||
Trademarks | PAY.ON | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 5 years | ||
Amortizable intangible assets | $ 2,300 |
Acquisitions - Purchase Price50
Acquisitions - Purchase Price Allocation of ReD (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 913,261 | $ 909,691 | $ 781,163 |
Retail Decisions [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 795 | ||
Receivables | 10,106 | ||
Other current assets | 10,282 | ||
Total current assets acquired | 21,183 | ||
Property and equipment | 3,354 | ||
Goodwill | 137,915 | ||
Deferred income taxes | 565 | ||
Other noncurrent assets | 416 | ||
Total assets acquired | 251,029 | ||
Accounts payable | 4,624 | ||
Employee compensation | 6,046 | ||
Other current liabilities | 11,683 | ||
Total current liabilities acquired | 22,353 | ||
Deferred income taxes | 23,427 | ||
Other noncurrent liabilities | 164 | ||
Total liabilities acquired | 45,944 | ||
Net assets acquired | 205,085 | ||
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 | ||
Customer relationships | Retail Decisions [Member] | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 18 years | ||
Amortizable intangible assets | $ 50,480 | ||
Trademarks | Retail Decisions [Member] | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful lives | 5 years | ||
Amortizable intangible assets | $ 3,980 |
Divestiture - Additional inform
Divestiture - Additional information (Detail) - Community Financial Services products - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Mar. 03, 2016 | |
TSA | Maximum | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Migration period | 18 months | |
Disposal Group, Not Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Amount of consideration related to disposal | $ 200 | |
Net after-tax gain on the sale of assets | $ 93.4 | |
Disposal Group, Not Discontinued Operations | Adjustment to Gain Loss on Sale of Assets | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net after-tax gain on the sale of assets | $ 0.5 |
Software and Other Intangible52
Software and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | $ 185,496 | $ 237,941 | |
Software, accumulated amortization | 195,000 | 158,900 | |
Other intangible assets amortization expense | $ 21,200 | 23,000 | $ 24,700 |
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 [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | $ 52,300 | 70,100 | |
Software, amortization expense | $ 13,900 | 14,500 | 14,800 |
Software Marketed for External Sale [Member] | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Software Marketed for External Sale [Member] | 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 | $ 133,200 | 167,800 | |
Software, amortization expense | $ 45,700 | $ 38,300 | $ 26,700 |
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 |
Software and Other Intangible53
Software and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 322,178 | $ 364,805 |
Accumulated Amortization | (118,544) | (107,880) |
Net Balance | 203,634 | 256,925 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 295,730 | 336,075 |
Accumulated Amortization | (96,356) | (86,585) |
Net Balance | 199,374 | 249,490 |
Trademarks and tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,019 | 18,040 |
Accumulated Amortization | (11,759) | (10,605) |
Net Balance | 4,260 | 7,435 |
Purchased contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,429 | 10,690 |
Accumulated Amortization | $ (10,429) | $ (10,690) |
Software and Other Intangible54
Software and Other Intangible Assets - Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Balance | $ 203,634 | $ 256,925 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,017 | 55,229 | |
2,018 | 41,254 | |
2,019 | 32,871 | |
2,020 | 25,733 | |
2,021 | 17,848 | |
Thereafter | 12,561 | |
Net Balance | 185,496 | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,017 | 19,040 | |
2,018 | 18,537 | |
2,019 | 18,006 | |
2,020 | 17,139 | |
2,021 | 16,677 | |
Thereafter | 114,235 | |
Net Balance | $ 203,634 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Feb. 24, 2017 | Oct. 26, 2016 | Aug. 20, 2013 | Nov. 10, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | Nov. 02, 2016 | Sep. 30, 2016 | Feb. 29, 2016 |
Debt Instrument [Line Items] | ||||||||||
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, 2016 for the Credit Facility was 3.27%. | |||||||||
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 | 3.27% | |||||||||
Other current assets | $ 33,578,000 | $ 21,637,000 | ||||||||
Current portion of long-term debt | 90,323,000 | 89,710,000 | ||||||||
Other noncurrent assets | 39,054,000 | 33,658,000 | ||||||||
Long-term debt | 653,595,000 | 834,449,000 | ||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility amount outstanding | 88,000,000 | |||||||||
Unused borrowings | 154,500,000 | |||||||||
Credit facilities, maximum borrowing capacity | $ 250,000,000 | |||||||||
Current borrowing capacity due letter of credit | 242,500,000 | |||||||||
Term Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility amount outstanding | 365,300,000 | |||||||||
Letters of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unused borrowings | 7,500,000 | |||||||||
Credit facilities, maximum borrowing capacity | $ 7,500,000 | $ 25,000,000 | ||||||||
Credit Facility maturity date | Jun. 30, 2017 | |||||||||
Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes amount outstanding | $ 300,000,000 | $ 300,000,000 | ||||||||
Issue price percentage of senior notes of the principal amount | 100.00% | |||||||||
Percentage of interest rate on notes | 6.375% | |||||||||
Maturity date of senior notes | Aug. 20, 2020 | Aug. 15, 2020 | ||||||||
ASU 2015-03 [Member] | Restatement Adjustment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Other current assets | (5,600,000) | |||||||||
Current portion of long-term debt | (5,600,000) | |||||||||
Other noncurrent assets | (8,800,000) | |||||||||
Long-term debt | (8,800,000) | |||||||||
Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Consolidated Net Leverage Ratio | 400.00% | 375.00% | ||||||||
Credit Agreement | 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% | |||||||||
Credit Agreement | 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% | |||||||||
Credit Agreement | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facilities, maximum borrowing capacity | $ 250,000,000 | |||||||||
Credit facilities, maturity | 5 years | |||||||||
Credit Facility maturity date | Aug. 20, 2018 | |||||||||
Credit Agreement | Term Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facilities, maximum borrowing capacity | $ 650,000,000 | |||||||||
Credit facilities, maturity | 5 years | |||||||||
Credit Facility maturity date | Aug. 20, 2018 | |||||||||
Amended Credit Agreement | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit Facility maturity date | Feb. 24, 2022 | |||||||||
Amended Credit Agreement | Revolving Credit Facility | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facilities, maximum borrowing capacity | $ 500,000,000 | |||||||||
Amended Credit Agreement | Term Credit Facility [Member] | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facilities, maximum borrowing capacity | $ 415,000,000 | |||||||||
Five-year License Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Financed internally-used software | $ 14,800,000 | |||||||||
License agreement period | 5 years | |||||||||
Annual payments due date | Through April 2016 | |||||||||
Three-year License Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Financed internally-used software | $ 20,400,000 | |||||||||
License agreement period | 3 years | |||||||||
Annual payments due date | Through November 2018 | |||||||||
Total other liabilities | $ 9,000,000 | $ 20,200,000 | ||||||||
Other current liabilities | 7,300,000 | 11,700,000 | ||||||||
Other noncurrent liabilities | $ 1,700,000 | $ 8,500,000 | ||||||||
Parent Company and Domestic Subsidiaries [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of capital stock pledged as collateral | 100.00% | |||||||||
Foreign Subsidiaries [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of capital stock pledged as collateral | 65.00% |
Debt - Maturities on Long-Term
Debt - Maturities on Long-Term Debt Outstanding (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 95,293 |
2,018 | 357,997 |
2,019 | 0 |
2,020 | 300,000 |
Total | $ 753,290 |
Debt - Carrying Value of Debt (
Debt - Carrying Value of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (9,372) | $ (14,424) |
Total debt | 743,918 | 924,159 |
Less current portion of term credit facility | 95,293 | 95,293 |
Less current portion of debt issuance costs | (4,970) | (5,583) |
Total long-term debt | 653,595 | 834,449 |
6.375% Senior Notes, due August 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 300,000 | 300,000 |
Term Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 365,290 | 460,583 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | $ 88,000 | $ 178,000 |
Debt - Carrying Value of Debt58
Debt - Carrying Value of Debt (Parenthetical) (Detail) - 6.375% Senior Notes, due August 2020 [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Debt Instrument [Line Items] | |
Percentage of interest rate on notes | 6.375% |
Maturity date of senior notes | Aug. 15, 2020 |
Fair Value of Financial Instr59
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value senior note | $ 309.8 | $ 310.5 |
Corporate Restructuring and O60
Corporate Restructuring and Other Organizational Changes - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)Position | Dec. 31, 2014USD ($)Position | |
Restructuring Cost and Reserve [Line Items] | |||
Employee termination costs paid during the period | $ 800 | ||
Employee termination costs | $ 1,300 | $ 8,700 | |
Number of positions eliminated | Position | 30 | 220 | |
Amounts paid during the period | 1,432 | $ 3,056 | |
Restructuring charges | 4,559 | 1,045 | $ 2,793 |
Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance liability to be paid over the next 12 months | 0 | 800 | |
Amounts paid during the period | 778 | 2,872 | |
Restructuring charges | 777 | 2,341 | |
Facility Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Amounts paid during the period | 654 | 184 | |
Restructuring charges | 4,559 | 268 | 452 |
Facility Closures [Member] | Other Current Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,100 | ||
Facility Closures [Member] | Other Noncurrent Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3,500 | ||
General and Administrative | Leased Facilities in Watford, UK; Providence, RI; Chantilly, VA; and West Hills, CA | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease termination fee | $ 5,000 | ||
Americas Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee termination costs | 700 | 5,700 | |
EMEA Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee termination costs | $ 600 | 2,000 | |
Asia/Pacific Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee termination costs | $ 1,000 |
Corporate Restructuring and O61
Corporate Restructuring and Other Organizational Changes - Components of Corporate Restructuring and Other Reorganization Activities from Recent Acquisitions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | $ 1,045 | $ 2,793 |
Restructuring charges (adjustments) incurred, net | 5,041 | 1,339 |
Amounts paid during the period | (1,432) | (3,056) |
Foreign currency translation adjustments | (95) | (31) |
Ending balance | 4,559 | 1,045 |
Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 777 | 2,341 |
Restructuring charges (adjustments) incurred, net | 1,339 | |
Amounts paid during the period | (778) | (2,872) |
Foreign currency translation adjustments | 1 | (31) |
Ending balance | 777 | |
Facility Closures [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 268 | 452 |
Restructuring charges (adjustments) incurred, net | 5,041 | |
Amounts paid during the period | (654) | (184) |
Foreign currency translation adjustments | (96) | |
Ending balance | $ 4,559 | $ 268 |
Common Stock and Treasury Sto62
Common Stock and Treasury Stock - Additional Information (Detail) - USD ($) | 12 Months Ended | 60 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Feb. 28, 2014 | Jul. 31, 2013 | Sep. 13, 2012 | Sep. 12, 2012 | |
Maximum stock authorized to purchase under stock repurchase program | $ 200,000,000 | $ 262,100,000 | ||||||
Increase in maximum stock authorized to purchase under stock repurchase program | $ 100,000,000 | $ 100,000,000 | ||||||
Repurchase of common stock, shares | 3,020,926 | 3,578,427 | 40,129,393 | |||||
Repurchase of common stock, value | $ 60,089,000 | $ 70,000,000 | $ 455,900,000 | |||||
Number shares issued pursuant to stock option exercises | 792,841 | 1,144,273 | 2,036,558 | |||||
Long-term incentive program performance share awards | ||||||||
Stock issued during the period performance share award | 470,029 | 548,671 | 635,643 | |||||
Restricted share awards (RSAs) [Member] | ||||||||
Stock issued during period, performance based restricted share awards | 148,322 | 125,026 | 106,275 | |||||
Performance-Based Restricted Share Awards [Member] | ||||||||
Stock issued during period, performance based restricted share awards | 978,365 | |||||||
Stock Options [Member] | ||||||||
Number shares issued pursuant to stock option exercises | 797,140 | 1,146,199 | 2,037,467 | |||||
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 | $ 78,200,000 | $ 78,200,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Average Share Amounts used to Compute Both Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted average shares outstanding: | |||
Basic weighted average shares outstanding | 117,533 | 117,465 | 114,798 |
Add: Dilutive effect of stock options | 1,314 | 1,454 | 1,973 |
Diluted weighted average shares outstanding | 118,847 | 118,919 | 116,771 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Options to purchase shares, contingently issuable shares, and common stock warrants excluded from diluted net income per share computation | 6,100,000 | 3,700,000 | 2,900,000 |
Common stock outstanding | 117,336,797 | 119,033,770 |
Other, net (Detail)
Other, net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |||||||||||
Foreign currency transaction gains (losses) | $ 4,105 | $ 1,946 | $ (67) | ||||||||
Realized gain on available-for-sale securities | 24,465 | ||||||||||
Other | (173) | ||||||||||
Total | $ (378) | $ 2,794 | $ 2,023 | $ (334) | $ (1,284) | $ 4,314 | $ 19,659 | $ 3,722 | $ 4,105 | $ 26,411 | $ (240) |
Other, net - Additional Informa
Other, net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income Expense [Line Items] | |||
Realized gain on available-for-sale securities | $ 24,465 | ||
Deferred tax assets, valuation allowance | $ 8,700 | ||
Yodlee, Inc. [Member] | |||
Other Income Expense [Line Items] | |||
Cost basis investment | 9,800 | ||
Additional investment | $ 1,000 | ||
Total investments | $ 10,800 | ||
Realized gain on available-for-sale securities | $ 24,500 | 23,000 | |
Cost basis price appreciation of shares | $ 10,800 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Number of geographic regions | 3 | ||
Number of reportable segments | 3 | ||
Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenues during the years ended December 31, 2016, 2015 and 2014 | No country outside of the United States accounted for more than 10% of the Company's consolidated revenues during the years ended December 31, 2016, 2015, and 2014. | ||
Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenues during the years ended December 31, 2016, 2015 and 2014 | No single customer accounted for more than 10% of the Company's consolidated revenues during the years ended December 31, 2016, 2015, and 2014. | ||
BASE24 | |||
Segment Reporting Information [Line Items] | |||
Percentage of total revenues from licensing BASE24 product line | 22.00% | 21.00% | 21.00% |
Segment Information - Selected
Segment Information - Selected Segment Financial Data, Revenues and Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | $ 342,730 | $ 216,975 | $ 219,930 | $ 226,066 | $ 308,637 | $ 238,701 | $ 265,822 | $ 232,817 | $ 1,005,701 | $ 1,045,977 | $ 1,016,149 | ||
Depreciation and amortization expense | 103,454 | 97,431 | 86,683 | ||||||||||
Stock-based compensation expense | 43,613 | 18,380 | 11,045 | ||||||||||
Income before income taxes | $ 109,862 | $ (16,252) | $ (34,143) | [1] | $ 126,114 | [1] | $ 62,623 | $ 18,566 | $ 32,876 | $ (692) | 185,581 | 113,373 | 98,769 |
Operating Segments [Member] | Americas Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Depreciation and amortization expense | 27,951 | 24,966 | 20,548 | ||||||||||
Stock-based compensation expense | 5,005 | 1,638 | 2,910 | ||||||||||
Income before income taxes | 206,689 | 111,382 | 143,379 | ||||||||||
Operating Segments [Member] | Americas Segment [Member] | United States [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 527,431 | 628,013 | 614,488 | ||||||||||
Operating Segments [Member] | Americas Segment [Member] | Other [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 116,718 | 82,548 | 87,279 | ||||||||||
Operating Segments [Member] | EMEA Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 261,160 | 250,568 | 230,879 | ||||||||||
Depreciation and amortization expense | 3,830 | 3,670 | 4,126 | ||||||||||
Stock-based compensation expense | 6,476 | 1,223 | 419 | ||||||||||
Income before income taxes | 176,958 | 132,518 | 116,120 | ||||||||||
Operating Segments [Member] | Asia/Pacific Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 100,392 | 84,848 | 83,503 | ||||||||||
Depreciation and amortization expense | 1,820 | 1,751 | 1,809 | ||||||||||
Stock-based compensation expense | 605 | 36 | 249 | ||||||||||
Income before income taxes | 62,422 | 41,658 | 38,853 | ||||||||||
Corporate, Non-Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Depreciation and amortization expense | 69,853 | 67,044 | 60,200 | ||||||||||
Stock-based compensation expense | 31,527 | 15,483 | 7,467 | ||||||||||
Income before income taxes | $ (260,488) | $ (172,185) | $ (199,583) | ||||||||||
[1] | As previously discussed in Note 1, Nature of Business and Summary of Significant Accounting Policies, the Company adopted ASU 2016-09 during the year ended December 31, 2016. The Company elected to early adopt ASU 2016-09 in the third quarter of 2016, which requires it to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The impact of the adoption to the Company's previously reported quarterly results for the quarters ended March 31 and June 30, 2016 are reflected in the table above. |
Segment Information - Selecte69
Segment Information - Selected Segment Financial Data, Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Long lived assets | $ 1,416,825 | $ 1,502,415 |
Assets | 1,902,295 | 1,975,788 |
Americas Segment [Member] | United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 752,442 | 915,030 |
Assets | 991,687 | 1,182,309 |
Americas Segment [Member] | Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 11,422 | 11,643 |
Assets | 32,365 | 33,492 |
EMEA Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 580,110 | 502,785 |
Assets | 765,291 | 643,275 |
Asia/Pacific Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Long lived assets | 72,851 | 72,957 |
Assets | $ 112,952 | $ 116,712 |
Segment Information - Revenues,
Segment Information - Revenues, by Product Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 342,730 | $ 216,975 | $ 219,930 | $ 226,066 | $ 308,637 | $ 238,701 | $ 265,822 | $ 232,817 | $ 1,005,701 | $ 1,045,977 | $ 1,016,149 |
Retail payments processing | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 415,729 | 402,454 | 406,023 | ||||||||
Billers | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 255,540 | 241,949 | 235,039 | ||||||||
Online banking and community financial services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 125,580 | 219,698 | 227,659 | ||||||||
Tools and infrastructure | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 63,923 | 42,783 | 40,427 | ||||||||
Wholesale banking payments | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 37,040 | 41,545 | 37,879 | ||||||||
Payment fraud management | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 30,130 | 27,373 | 36,235 | ||||||||
Card and merchant management | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 77,759 | $ 70,175 | $ 32,887 |
Stock-Based Compensation Plan71
Stock-Based Compensation Plans - Additional Information (Detail) | Sep. 15, 2015 | Jun. 09, 2015 | Jul. 24, 2007shares | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016USD ($)TrancheEmployee$ / sharesshares | Dec. 31, 2015USD ($)Tranche$ / sharesshares | Sep. 30, 2015 | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2014 | Jun. 14, 2012shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares issued under ESPP | 188,453 | 162,058 | 154,223 | |||||||||
Stock-based compensation expense | $ | $ 43,613,000 | $ 18,380,000 | $ 11,045,000 | |||||||||
Employee stock purchase plan, amended plan start date | May 1, 2008 | |||||||||||
Employee stock purchase plan, amended plan end date | Apr. 30, 2018 | |||||||||||
Employee stock purchase plan term | 10 years | |||||||||||
Shares of common stock reserved for issuance prior to amendment | 9,000,000 | |||||||||||
Incentive plan, weighted-average grant date fair value of stock options granted | $ / shares | $ 5.59 | $ 6.49 | $ 9.02 | |||||||||
Incentive plan, total intrinsic value of stock options exercised | $ | $ 6,800,000 | $ 12,400,000 | $ 22,800,000 | |||||||||
Expected dividend yield | 0.00% | |||||||||||
Dividend paid | $ / shares | $ 0 | |||||||||||
Number of tranches | Tranche | 3 | 3 | ||||||||||
Unrecognized compensation costs | $ | $ 500,000 | |||||||||||
Unrecognized compensation costs, weighted-average recognition periods | 6 years | |||||||||||
Stock-based compensation expenses tax benefits | $ | $ 14,300,000 | $ 6,900,000 | 4,200,000 | |||||||||
Employee Stock Purchase Plan 1999 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares authorized | 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 | |||||||||||
Employee participating annual base compensation designated for purchase of common stock, percent | 10.00% | |||||||||||
Price of common stock purchased under ESPP, percent | 85.00% | |||||||||||
Discount offered pursuant to ESPP, percentage | 15.00% | |||||||||||
Stock-based compensation expense | $ | $ 500,000 | $ 500,000 | $ 500,000 | |||||||||
Stock Options [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation costs | $ | $ 12,000,000 | |||||||||||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 10 months 24 days | |||||||||||
Tranche One [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation, trading price percentage | 133.00% | 133.00% | ||||||||||
Consecutive trading days | 20 days | 20 years | ||||||||||
Award vesting period | 1 year | |||||||||||
Share-based compensation, non-vested grant date fair value | $ / shares | $ 7.46 | $ 8.01 | ||||||||||
Tranche Two [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation, trading price percentage | 167.00% | 167.00% | ||||||||||
Consecutive trading days | 20 days | 20 years | ||||||||||
Share-based compensation, non-vested grant date fair value | $ / shares | $ 7.06 | $ 7.56 | ||||||||||
Tranche Three [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation, trading price percentage | 200.00% | 200.00% | ||||||||||
Consecutive trading days | 20 days | 20 years | ||||||||||
Share-based compensation, non-vested grant date fair value | $ / shares | $ 6.50 | $ 7 | ||||||||||
Restricted share awards (RSAs) [Member] | ||||||||||||
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% | |||||||||
Award vesting period | 1 year | |||||||||||
Stock based compensation awards, shares vested | 114,219 | 158,973 | 66,670 | |||||||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 9,062 | 25,235 | 26,461 | |||||||||
Unrecognized compensation costs | $ | $ 2,000,000 | |||||||||||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 3 months 18 days | |||||||||||
2012 Grant | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expected attainment level for the awards granted, percentage | 0.00% | 0.00% | ||||||||||
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% | |||||||||||
2013 Grant | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expected attainment level for the awards granted, percentage | 0.00% | |||||||||||
2013 Grant | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expected attainment level for the awards granted, percentage | 75.00% | |||||||||||
2011 Grant | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expected attainment level for the awards granted, percentage | 91.00% | |||||||||||
2011 Grant | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expected attainment level for the awards granted, percentage | 100.00% | |||||||||||
2015 Grant | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expected attainment level for the awards granted, percentage | 100.00% | |||||||||||
Performance-Based Restricted Share Awards [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 1 year 3 months 18 days | |||||||||||
Stock based compensation awards, shares vested | 169,567 | |||||||||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 59,659 | |||||||||||
Unrecognized compensation costs | $ | $ 3,200,000 | |||||||||||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 1 month 21 days | |||||||||||
Performance-Based Restricted Share Awards [Member] | Tranche One [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | |||||||||||
Award vesting percentage for each year | 90.40% | 33.00% | ||||||||||
Threshold level percentage for share awards | 150.00% | |||||||||||
Award grants assuming percentage | 100.00% | 100.00% | ||||||||||
Performance-Based Restricted Share Awards [Member] | Tranche Two [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage for each year | 33.00% | |||||||||||
Performance-Based Restricted Share Awards [Member] | Tranche Three [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage for each year | 33.00% | |||||||||||
Retention RSAs [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock based compensation awards, shares vested | 226,526 | |||||||||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 76,421 | |||||||||||
Retention RSAs [Member] | Executive Officers [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 1 year 3 months 18 days | |||||||||||
Retention RSAs [Member] | Executive Officers [Member] | Tranche One [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage for each year | 50.00% | |||||||||||
Retention RSAs [Member] | Executive Officers [Member] | Tranche Two [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage for each year | 50.00% | |||||||||||
Retention RSAs [Member] | Employees other than Named Executive Officers [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 9 months 18 days | |||||||||||
Retention RSAs [Member] | Employees other than Named Executive Officers [Member] | Tranche One [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage for each year | 50.00% | |||||||||||
Retention RSAs [Member] | Employees other than Named Executive Officers [Member] | Tranche Two [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage for each year | 50.00% | |||||||||||
PAY.ON RSAs [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Awards granted requisite service period | 2 years | |||||||||||
Restricted share awards, vesting increments on anniversary dates of grants | 25.00% | |||||||||||
Stock based compensation awards, shares vested | 238,374 | |||||||||||
Number of employees to whom awards issued | Employee | 2 | |||||||||||
2016 Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares authorized | 8,000,000 | |||||||||||
2016 Incentive Plan | Stock options, stock appreciation rights, restricted stock, restricted stock units and other awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Maximum number of shares of Common Stock a participant may receive | 3,000,000 | |||||||||||
2016 Incentive Plan | Performance shares or Performance units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Maximum aggregate value on the date of grant | $ | $ 9,000,000 | |||||||||||
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 | |||||||||||
2005 Stock Incentive Plan | Tranche One [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation, trading price percentage | 133.00% | |||||||||||
Consecutive trading days | 20 days | |||||||||||
2005 Stock Incentive Plan | Tranche Two [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation, trading price percentage | 167.00% | |||||||||||
Consecutive trading days | 20 days | |||||||||||
2005 Stock Incentive Plan | Tranche Three [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation, trading price percentage | 200.00% | |||||||||||
Consecutive trading days | 20 days | |||||||||||
LTIP Performance Shares [Member] | ||||||||||||
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% | |||||||
Stock based compensation awards, shares vested | 548,671 | 635,643 | ||||||||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 196,169 | 228,279 | ||||||||||
Unrecognized compensation costs | $ | $ 18,000,000 | |||||||||||
Unrecognized compensation costs, weighted-average recognition periods | 2 years | |||||||||||
LTIP Performance Shares [Member] | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 1 year | 1 year | 1 year | |||||||||
LTIP Performance Shares [Member] | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | 3 years | 3 years |
Stock-Based Compensation Plan72
Stock-Based Compensation Plans - Summary of Stock Options Issued Pursuant to Stock Incentive Plans (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | |||
Outstanding, Beginning Balance | 5,799,076 | 5,282,693 | 7,408,821 |
Granted | 2,284,500 | 2,055,514 | 27,132 |
Exercised | (792,841) | (1,144,273) | (2,036,558) |
Forfeited | (446,845) | (394,265) | (116,702) |
Expired | (52,515) | (593) | |
Outstanding, Ending Balance | 6,791,375 | 5,799,076 | 5,282,693 |
Number of Shares Exercisable, Ending Balance | 3,650,356 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $ 14.37 | $ 12.06 | $ 11.02 |
Granted | 17.92 | 19.12 | 20.13 |
Exercised | 11.69 | 10.62 | 8.08 |
Forfeited | 18.69 | 19.06 | 17.80 |
Expired | 20.44 | 20.51 | |
Ending Balance | 15.54 | $ 14.37 | $ 12.06 |
Weighted-Average Exercise Price Exercisable, Ending Balance | $ 13.15 | ||
Weighted-Average Remaining Contractual Term (Years) | |||
Weighted Average Remaining Contractual Term (Years), Outstanding as of end of period | 6 years 8 months 5 days | ||
Weighted-Average Remaining Contractual Term (Years), Exercisable as of end of period | 4 years 10 months 13 days | ||
Aggregate Intrinsic Value of In-the-Money Options | |||
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period | $ 20,777,320 | ||
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period | $ 20,245,847 |
Stock-Based Compensation Plan73
Stock-Based Compensation Plans - Estimated Fair Value of Options Granted using Black-Scholes Option-Pricing Model with Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
Black-Scholes Option-Pricing Model [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 5 years 10 months 24 days | 5 years 10 months 24 days | 5 years 10 months 24 days |
Risk-free interest rate | 1.20% | 1.40% | 1.80% |
Expected volatility | 29.70% | 32.10% | 45.20% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Monte Carlo Simulation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 7 years 6 months | 7 years 6 months | |
Risk-free interest rate | 1.60% | 1.70% | |
Expected volatility | 41.60% | 41.90% | |
Expected dividend yield | 0.00% | 0.00% |
Stock-Based Compensation Plan74
Stock-Based Compensation Plans - Summary of Transaction Stock Options Issued Pursuant to Stock Incentive Plans (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | |||
Outstanding, Beginning Balance | 5,799,076 | 5,282,693 | 7,408,821 |
Exercised | (792,841) | (1,144,273) | (2,036,558) |
Cancelled | (446,845) | (394,265) | (116,702) |
Outstanding, Ending Balance | 6,791,375 | 5,799,076 | 5,282,693 |
Number of Shares Exercisable, Ending Balance | 3,650,356 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $ 14.37 | $ 12.06 | $ 11.02 |
Exercised | 11.69 | 10.62 | 8.08 |
Cancelled | 18.69 | 19.06 | 17.80 |
Ending Balance | 15.54 | $ 14.37 | $ 12.06 |
Weighted-Average Exercise Price Exercisable, Ending Balance | $ 13.15 | ||
Weighted-Average Remaining Contractual Term (Years) | |||
Weighted-Average Remaining Contractual Term (Years), Outstanding as of end of period | 6 years 8 months 5 days | ||
Weighted-Average Remaining Contractual Term (Years), Exercisable as of end of period | 4 years 10 months 13 days | ||
Aggregate Intrinsic Value of In-the-Money Options | |||
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period | $ 20,777,320 | ||
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period | $ 20,245,847 | ||
Online Resources Corporation | |||
Number of Shares | |||
Outstanding, Beginning Balance | 21,036 | 46,512 | 62,445 |
Exercised | (4,299) | (1,926) | (909) |
Cancelled | (2,634) | (23,550) | (15,024) |
Outstanding, Ending Balance | 14,103 | 21,036 | 46,512 |
Number of Shares Exercisable, Ending Balance | 14,103 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $ 29.76 | $ 36.73 | $ 35.03 |
Exercised | 13.92 | 13.92 | 13.92 |
Cancelled | 40.51 | 44.83 | 31.03 |
Ending Balance | 32.58 | $ 29.76 | $ 36.73 |
Weighted-Average Exercise Price Exercisable, Ending Balance | $ 32.58 | ||
Weighted-Average Remaining Contractual Term (Years) | |||
Weighted-Average Remaining Contractual Term (Years), Outstanding as of end of period | 1 year 4 months 21 days | ||
Weighted-Average Remaining Contractual Term (Years), Exercisable as of end of period | 1 year 4 months 21 days | ||
Aggregate Intrinsic Value of In-the-Money Options | |||
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period | $ 0 | ||
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period | $ 0 |
Stock-Based Compensation Plan75
Stock-Based Compensation Plans - Summary of Nonvested LTIP Performance Based Share Awards and Changes During Period (Detail) - LTIP Performance Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares at Expected Attainment | |||
Beginning Balance | 889,295 | 1,145,916 | 2,718,576 |
Granted | 1,059,428 | 1,025,863 | 19,065 |
Vested | (548,671) | (635,643) | |
Forfeited | (210,667) | (205,510) | (111,599) |
Change in expected attainment for 2011 and 2013 grants | (528,303) | (844,483) | |
Ending Balance | 1,738,056 | 889,295 | 1,145,916 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 19.13 | $ 14.84 | $ 13.78 |
Granted | 17.92 | 19.12 | 20.13 |
Vested | 9.75 | 8.88 | |
Forfeited | 18.61 | 19.39 | 16.43 |
Change in expected attainment for 2011 and 2013 grants | 19.44 | 15.86 | |
Ending Balance | $ 18.45 | $ 19.13 | $ 14.84 |
Stock-Based Compensation Plan76
Stock-Based Compensation Plans - Summary of Nonvested Restricted Share Awards and Changes During Period (Detail) - Restricted share awards (RSAs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Nonvested Restricted Share Awards | |||
Beginning Balance | 149,262 | 183,209 | 145,065 |
Granted | 148,322 | 125,026 | 106,275 |
Vested | (114,219) | (158,973) | (66,670) |
Forfeited | (11,257) | (1,461) | |
Ending Balance | 172,108 | 149,262 | 183,209 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 22.62 | $ 17.11 | $ 14.91 |
Granted | 20.19 | 23.82 | 18.57 |
Vested | 22.64 | 17.21 | 14.59 |
Forfeited | 21.01 | 20.51 | |
Ending Balance | $ 20.62 | $ 22.62 | $ 17.11 |
Stock-Based Compensation Plan77
Stock-Based Compensation Plans - Summary of Nonvested Performance Based Share Awards and Changes During Period (Detail) - Performance-Based Restricted Share Awards [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Nonvested Restricted Share Awards | ||
Beginning Balance | 938,863 | |
Granted | 978,365 | |
Forfeited | (67,397) | (39,502) |
Vested | (169,567) | |
Change in attainment for 2015 grants | (18,232) | |
Ending Balance | 683,667 | 938,863 |
Weighted-Average Grant Date Fair Value | ||
Beginning Balance | $ 23.42 | |
Granted | $ 23.45 | |
Forfeited | 22.34 | 24.24 |
Vested | 24.41 | |
Change in attainment for 2015 grants | 24.41 | |
Ending Balance | $ 23.25 | $ 23.42 |
Stock-Based Compensation Plan78
Stock-Based Compensation Plans - Summary of Nonvested Retention Restricted Share Awards and Changes During Period (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Retention RSAs [Member] | ||
Nonvested Restricted Share Awards | ||
Granted | 473,069 | |
Vested | (226,526) | |
Forfeited | (41,003) | |
Ending Balance | 205,540 | |
Weighted-Average Grant Date Fair Value | ||
Granted | $ 17.89 | |
Vested | 17.89 | |
Forfeited | 17.89 | |
Ending Balance | $ 17.89 | |
PAY.ON RSAs [Member] | ||
Nonvested Restricted Share Awards | ||
Beginning Balance | 476,750 | |
Granted | 476,750 | |
Vested | (238,374) | |
Ending Balance | 238,376 | 476,750 |
Weighted-Average Grant Date Fair Value | ||
Beginning Balance | $ 23.60 | |
Granted | $ 23.60 | |
Vested | 23.60 | |
Ending Balance | $ 23.60 | $ 23.60 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employees maximum 401(k) contribution, percentage | 75.00% | ||
Defined contribution plan, contribution | $ 5,500,000 | $ 6,100,000 | $ 6,000,000 |
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 [Member] | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, contribution | $ 1,700,000 | $ 1,800,000 | $ 1,500,000 |
Employees under age 50 | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employees maximum 401(k) contribution, amount | 18,000 | ||
Employees aged 50 or older | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employees maximum 401(k) contribution, amount | $ 24,000 | ||
Employed at December 1, 2000 | EMEA [Member] | |||
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 [Member] | |||
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 [Member] | 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 [Member] | Minimum | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer contribution percentage of eligible compensation | 6.00% |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||||
United States | $ 134,740 | $ 52,563 | $ 47,963 | ||||||||||
Foreign | 50,841 | 60,810 | 50,806 | ||||||||||
Income before income taxes | $ 109,862 | $ (16,252) | $ (34,143) | $ 126,114 | $ 62,623 | $ 18,566 | $ 32,876 | $ (692) | $ 185,581 | $ 113,373 | $ 98,769 | ||
[1] | As previously discussed in Note 1, Nature of Business and Summary of Significant Accounting Policies, the Company adopted ASU 2016-09 during the year ended December 31, 2016. The Company elected to early adopt ASU 2016-09 in the third quarter of 2016, which requires it to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The impact of the adoption to the Company's previously reported quarterly results for the quarters ended March 31 and June 30, 2016 are reflected in the table above. |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal | |||||||||||||
Current | $ 14,108 | $ (6,889) | $ 7,895 | ||||||||||
Deferred | 19,034 | 18,024 | 7,021 | ||||||||||
Total | 33,142 | 11,135 | 14,916 | ||||||||||
State | |||||||||||||
Current | 12,565 | 379 | 1,542 | ||||||||||
Deferred | (2,502) | (4,096) | (2,397) | ||||||||||
Total | 10,063 | (3,717) | (855) | ||||||||||
Foreign | |||||||||||||
Current | 11,671 | 15,117 | 13,335 | ||||||||||
Deferred | 1,170 | 5,402 | 3,813 | ||||||||||
Total | 12,841 | 20,519 | 17,148 | ||||||||||
Income tax provision | $ 43,171 | $ (6,426) | $ (17,669) | $ 36,970 | $ 18,856 | $ 3,786 | $ 5,825 | $ (530) | $ 56,046 | $ 27,937 | $ 31,209 | ||
[1] | As previously discussed in Note 1, Nature of Business and Summary of Significant Accounting Policies, the Company adopted ASU 2016-09 during the year ended December 31, 2016. The Company elected to early adopt ASU 2016-09 in the third quarter of 2016, which requires it to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The impact of the adoption to the Company's previously reported quarterly results for the quarters ended March 31 and June 30, 2016 are reflected in the table above. |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||||
Tax expense at federal rate of 35% | $ 64,953 | $ 39,680 | $ 34,569 | ||||||||||
State income taxes, net of federal benefit | 7,060 | (2,462) | (544) | ||||||||||
Change in valuation allowance | (8,524) | (9,066) | 3,521 | ||||||||||
Foreign tax rate differential | (11,830) | (5,710) | (5,508) | ||||||||||
Unrecognized tax benefit increase | 1,045 | 2,977 | 65 | ||||||||||
Tax effect of foreign operations | 5,988 | 261 | (104) | ||||||||||
Acquisition costs | 28 | 289 | |||||||||||
Tax benefit of research & development | (1,088) | (871) | (3,446) | ||||||||||
Other | (1,586) | 3,128 | 2,367 | ||||||||||
Income tax provision | $ 43,171 | $ (6,426) | $ (17,669) | $ 36,970 | $ 18,856 | $ 3,786 | $ 5,825 | $ (530) | $ 56,046 | $ 27,937 | $ 31,209 | ||
[1] | As previously discussed in Note 1, Nature of Business and Summary of Significant Accounting Policies, the Company adopted ASU 2016-09 during the year ended December 31, 2016. The Company elected to early adopt ASU 2016-09 in the third quarter of 2016, which requires it to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The impact of the adoption to the Company's previously reported quarterly results for the quarters ended March 31 and June 30, 2016 are reflected in the table above. |
Income Taxes - Summary of Dif83
Income Taxes - 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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 35.00% | 35.00% | 35.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - 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 ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 65,351 | $ 112,193 |
Tax credits | 25,173 | 40,614 |
Compensation | 39,340 | 25,752 |
Deferred revenue | 27,303 | 25,287 |
Other | 6,279 | 8,346 |
Gross deferred income tax assets | 163,446 | 212,192 |
Less: valuation allowance | (9,659) | (18,742) |
Net deferred income tax assets | 153,787 | 193,450 |
Deferred income tax liabilities: | ||
Depreciation and amortization | (102,657) | (130,645) |
Total deferred income tax liabilities | (102,657) | (130,645) |
Net deferred income taxes | 51,130 | 62,805 |
Deferred income taxes / liabilities included in the balance sheet are: | ||
Deferred income tax asset-noncurrent | 77,479 | 90,872 |
Deferred income tax liability-noncurrent | (26,349) | (28,067) |
Net deferred income taxes | $ 51,130 | $ 62,805 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ||||
Decrease in deferred tax assets valuation allowance | $ 9,100,000 | |||
Unrecognized tax benefit | 24,278,000 | $ 21,079,000 | $ 14,780,000 | $ 14,996,000 |
Net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate | 23,200,000 | 20,000,000 | ||
Decrease in unrecognized tax benefits due to the expiration of statutes of limitations and the settlement of various audits | 1,400,000 | |||
Accrued interest and penalties related to income tax liabilities | 1,900,000 | 2,200,000 | ||
Aggregate amount of interest and penalties recorded in the statement of operations | (200,000) | (100,000) | $ 200,000 | |
Undistributed earning of foreign subsidiaries | 181,900,000 | |||
Other Noncurrent Liabilities | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefit | 17,600,000 | $ 8,200,000 | ||
Domestic federal | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets operating loss carry forwards subject to expiration | $ 139,700,000 | |||
Deferred tax assets operating loss carry forwards expiration year | 2,017 | |||
Valuation allowance against the tax benefit associated with NOLs | $ 5,900,000 | |||
Tax credits expiration year | 2,019 | |||
General business tax credit carryforwards | $ 11,900,000 | |||
Foreign Entities | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets operating loss carry forwards subject to expiration | 37,300,000 | |||
Deferred tax assets operating loss carry forwards | 6,400,000 | |||
Deferred tax assets operating loss carry forwards not subject to expiration | $ 0 | |||
Deferred tax assets operating loss carry forwards not subject to expiration, expiration period | 10 years | |||
Valuation allowance against the tax benefit associated with NOLs | $ 35,900,000 | |||
Foreign tax credits carryforwards | 17,300,000 | |||
Valuation allowance against tax credit | $ 600,000 | |||
Tax credits expiration year | 2,021 | |||
Foreign Entities | Earliest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Tax years open for audit | 2,002 | |||
Foreign Entities | Latest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Tax years open for audit | 2,015 | |||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets operating loss carry forwards subject to expiration | $ 6,400,000 | |||
Deferred tax assets operating loss carry forwards expiration year | 2,017 | |||
Valuation allowance against the tax benefit associated with NOLs | $ 1,200,000 | |||
Tax credits expiration year | 2,022 | |||
General business tax credit carryforwards | $ 500,000 | |||
India Tax Authority | ||||
Income Taxes [Line Items] | ||||
Income tax examination description | The Company's Indian income tax returns covering fiscal years 2002 through 2006 and 2010 through 2014 are under audit by the Indian tax authority |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance of unrecognized tax benefits at beginning of year | $ 21,079 | $ 14,780 | $ 14,996 |
Increases for tax positions of prior years | 58 | 1,449 | 84 |
Decreases for tax positions of prior years | (361) | (47) | (412) |
Increases for tax positions established for the current period | 5,185 | 9,866 | 491 |
Decreases for settlements with taxing authorities | (167) | (594) | |
Reductions resulting from lapse of applicable statute of limitation | (1,310) | (4,218) | (239) |
Adjustment resulting from foreign currency translation | (206) | (157) | (140) |
Balance of unrecognized tax benefits at end of year | $ 24,278 | $ 21,079 | $ 14,780 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 23, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Total operating lease expense | $ 25.3 | $ 26.6 | $ 26.7 | |
Loss Contingency, name of plaintiff | Baldwin Hackett & Meeks, Inc. | |||
Loss contingency, damages sought, value | $ 43.8 | |||
Loss contingency, damages awarded, value | $ 43.8 | |||
Attorney fees and costs | $ 2.7 |
Commitments and Contingencies88
Commitments and Contingencies - Aggregate Minimum Operating Lease Payment (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leases | |
2,017 | $ 16,206 |
2,018 | 16,073 |
2,019 | 14,227 |
2,020 | 11,252 |
2,021 | 7,828 |
Thereafter | 25,572 |
Total minimum lease payments | $ 91,158 |
Accumulated Other Comprehensi89
Accumulated Other Comprehensive Loss - Activity within Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 654,400 | $ 581,405 | $ 543,694 |
Other comprehensive income (loss) | (22,524) | (51,693) | 3,432 |
Ending Balance | 754,917 | 654,400 | 581,405 |
Unrealized gain on available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 22,977 | ||
Other comprehensive income (loss) | (22,977) | 22,977 | |
Ending Balance | 22,977 | ||
Foreign currency translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (71,576) | (42,860) | (23,315) |
Other comprehensive income (loss) | (22,524) | (28,716) | (19,545) |
Ending Balance | (94,100) | (71,576) | (42,860) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (71,576) | (19,883) | (23,315) |
Other comprehensive income (loss) | (22,524) | (51,693) | 3,432 |
Ending Balance | $ (94,100) | $ (71,576) | $ (19,883) |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Revenues: | ||||||||||||||
License | $ 159,277 | $ 43,256 | $ 33,510 | $ 37,423 | $ 94,230 | $ 50,237 | $ 67,161 | $ 39,577 | $ 273,466 | $ 251,205 | $ 235,157 | |||
Maintenance | 58,072 | 57,741 | 60,332 | 57,331 | 63,000 | 59,262 | 60,141 | 59,492 | 233,476 | 241,895 | 255,993 | |||
Services | 24,262 | 19,809 | 23,823 | 19,576 | 34,371 | 25,842 | 23,110 | 23,497 | 87,470 | 106,820 | 105,584 | |||
Hosting | 101,119 | 96,169 | 102,265 | 111,736 | 117,036 | 103,360 | 115,410 | 110,251 | 411,289 | 446,057 | 419,415 | |||
Total revenues | 342,730 | 216,975 | 219,930 | 226,066 | 308,637 | 238,701 | 265,822 | 232,817 | 1,005,701 | 1,045,977 | 1,016,149 | |||
Operating expenses: | ||||||||||||||
Cost of license | [1] | 7,043 | 5,253 | 4,610 | 5,439 | 5,810 | 5,387 | 5,939 | 6,109 | 22,345 | 23,245 | 24,565 | ||
Cost of maintenance, services and hosting | [1] | 103,786 | 95,014 | 110,774 | [2] | 112,995 | [2] | 111,285 | 104,272 | 120,484 | 113,013 | 422,569 | 449,054 | 430,191 |
Research and development | 37,665 | 42,210 | 46,421 | [2] | 43,604 | [2] | 33,285 | 36,123 | 39,425 | 37,091 | 169,900 | 145,924 | 144,207 | |
Selling and marketing | 29,421 | 29,874 | 28,795 | [2] | 29,992 | [2] | 40,747 | 28,451 | 31,298 | 28,911 | 118,082 | 129,407 | 112,047 | |
General and administrative | 21,639 | 31,390 | 34,520 | [2] | 26,068 | [2] | 20,552 | 20,284 | 25,008 | 21,575 | 113,617 | 87,419 | 95,065 | |
Gain on sale of CFS assets | 489 | (151,952) | (151,463) | |||||||||||
Depreciation and amortization | 22,833 | 22,098 | 21,382 | 23,208 | 22,985 | 20,298 | 20,004 | 19,693 | 89,521 | 82,980 | 71,902 | |||
Total operating expenses | 222,387 | 226,328 | 246,502 | [2] | 89,354 | [2] | 234,664 | 214,815 | 242,158 | 226,392 | 784,571 | 918,029 | 877,977 | |
Operating income | 120,343 | (9,353) | (26,572) | [2] | 136,712 | [2] | 73,973 | 23,886 | 23,664 | 6,425 | 221,130 | 127,948 | 138,172 | |
Other income (expense): | ||||||||||||||
Interest expense | (10,217) | (9,838) | (9,715) | (10,414) | (10,198) | (9,728) | (10,505) | (10,941) | (40,184) | (41,372) | (39,738) | |||
Interest income | 114 | 145 | 121 | 150 | 132 | 94 | 58 | 102 | 530 | 386 | 575 | |||
Other, net | (378) | 2,794 | 2,023 | (334) | (1,284) | 4,314 | 19,659 | 3,722 | 4,105 | 26,411 | (240) | |||
Total other income (expense) | (10,481) | (6,899) | (7,571) | (10,598) | (11,350) | (5,320) | 9,212 | (7,117) | (35,549) | (14,575) | (39,403) | |||
Income (loss) before income taxes | 109,862 | (16,252) | (34,143) | [2] | 126,114 | [2] | 62,623 | 18,566 | 32,876 | (692) | 185,581 | 113,373 | 98,769 | |
Income tax expense (benefit) | 43,171 | (6,426) | (17,669) | [2] | 36,970 | [2] | 18,856 | 3,786 | 5,825 | (530) | 56,046 | 27,937 | 31,209 | |
Net income (loss) | $ 66,691 | $ (9,826) | $ (16,474) | [2] | $ 89,144 | [2] | $ 43,767 | $ 14,780 | $ 27,051 | $ (162) | $ 129,535 | $ 85,436 | $ 67,560 | |
Earnings (loss) per share | ||||||||||||||
Basic | $ 0.57 | $ (0.08) | $ (0.14) | $ 0.75 | $ 0.37 | $ 0.13 | $ 0.23 | $ 0 | $ 1.10 | $ 0.73 | $ 0.59 | |||
Diluted | $ 0.56 | $ (0.08) | $ (0.14) | $ 0.74 | $ 0.36 | $ 0.12 | $ 0.23 | $ 0 | $ 1.09 | $ 0.72 | $ 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. | |||||||||||||
[2] | As previously discussed in Note 1, Nature of Business and Summary of Significant Accounting Policies, the Company adopted ASU 2016-09 during the year ended December 31, 2016. The Company elected to early adopt ASU 2016-09 in the third quarter of 2016, which requires it to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The impact of the adoption to the Company's previously reported quarterly results for the quarters ended March 31 and June 30, 2016 are reflected in the table above. |