Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 115,904,949 | ||
Entity Public Float | $ 1,973,213,810 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 69,710 | $ 75,753 |
Receivables, net of allowances of $4,799 and $3,873, respectively | 262,845 | 268,162 |
Recoverable income taxes | 7,921 | 4,614 |
Prepaid expenses | 23,219 | 25,884 |
Other current assets | 58,126 | 33,578 |
Total current assets | 421,821 | 407,991 |
Noncurrent assets | ||
Property and equipment, net | 80,228 | 78,950 |
Software, net | 155,386 | 185,496 |
Goodwill | 909,691 | 909,691 |
Intangible assets, net | 191,281 | 203,634 |
Deferred income taxes, net | 66,749 | 77,479 |
Other noncurrent assets | 36,483 | 39,054 |
TOTAL ASSETS | 1,861,639 | 1,902,295 |
Current liabilities | ||
Accounts payable | 34,718 | 42,873 |
Employee compensation | 48,933 | 47,804 |
Current portion of long-term debt | 17,786 | 90,323 |
Deferred revenue | 107,543 | 105,191 |
Income taxes payable | 9,898 | 11,334 |
Other current liabilities | 102,904 | 78,841 |
Total current liabilities | 321,782 | 376,366 |
Noncurrent liabilities | ||
Deferred revenue | 51,967 | 49,863 |
Long-term debt | 667,943 | 653,595 |
Deferred income taxes, net | 16,910 | 26,349 |
Other noncurrent liabilities | 38,440 | 41,205 |
Total liabilities | 1,097,042 | 1,147,378 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity | ||
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at December 31, 2017 and 2016 | ||
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at December 31, 2017 and 2016 | 702 | 702 |
Additional paid-in capital | 610,345 | 600,344 |
Retained earnings | 550,866 | 545,731 |
Treasury stock, at cost, 23,428,324 and 23,188,258 shares at December 31, 2017 and 2016, respectively | (319,960) | (297,760) |
Accumulated other comprehensive loss | (77,356) | (94,100) |
Total stockholders' equity | 764,597 | 754,917 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,861,639 | $ 1,902,295 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 4,799 | $ 3,873 |
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 | 23,428,324 | 23,188,258 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Revenues | ||||||
Software as a service and platform as a service | $ 425,572 | $ 411,289 | $ 446,057 | |||
License | 293,124 | 273,466 | 251,205 | |||
Maintenance | 222,071 | 233,476 | 241,895 | |||
Services | 83,424 | 87,470 | 106,820 | |||
Total revenues | 1,024,191 | 1,005,701 | 1,045,977 | |||
Operating expenses | ||||||
Cost of revenue | [1] | 452,286 | 444,914 | 472,299 | ||
Research and development | 136,921 | 169,900 | [2] | 145,924 | ||
Selling and marketing | 107,885 | 118,082 | [2] | 129,407 | ||
General and administrative | 153,032 | [3] | 113,617 | [2] | 87,419 | |
Gain on sale of CFS assets | (151,463) | |||||
Depreciation and amortization | 89,427 | 89,521 | 82,980 | |||
Total operating expenses | 939,551 | 784,571 | 918,029 | |||
Operating income (loss) | 84,640 | 221,130 | [2] | 127,948 | ||
Other income (expense) | ||||||
Interest expense | (39,013) | (40,184) | (41,372) | |||
Interest income | 564 | 530 | 386 | |||
Other, net | (2,619) | 4,105 | 26,411 | |||
Total other income (expense) | (41,068) | (35,549) | (14,575) | |||
Income before income taxes | 43,572 | 185,581 | [2] | 113,373 | ||
Income tax expense | 38,437 | 56,046 | [2] | 27,937 | ||
Net income | $ 5,135 | $ 129,535 | [2] | $ 85,436 | ||
Earnings per common share | ||||||
Basic | $ 0.04 | $ 1.10 | $ 0.73 | |||
Diluted | $ 0.04 | $ 1.09 | $ 0.72 | |||
Weighted average common shares outstanding | ||||||
Basic | 118,059 | 117,533 | 117,465 | |||
Diluted | 119,444 | 118,847 | 118,919 | |||
[1] | The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. | |||||
[2] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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. | |||||
[3] | General and administrative expenses in the second quarter includes the BHMI judgment as discussed in Note 14. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,135 | $ 129,535 | [1] | $ 85,436 |
Other comprehensive income (loss): | ||||
Unrealized gain on available-for-sale securities | 1,488 | |||
Reclassification of unrealized gain to a realized gain on available-for-sale securities | (24,465) | |||
Foreign currency translation adjustments | 16,744 | (22,524) | (28,716) | |
Total other comprehensive income (loss) | 16,744 | (22,524) | (51,693) | |
Comprehensive income | $ 21,879 | $ 107,011 | $ 33,743 | |
[1] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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 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, 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 | [1] | 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 | (99) | 556 | (655) | ||||
Ending Balance at Dec. 31, 2016 | 754,917 | 702 | 600,344 | 545,731 | (297,760) | (94,100) | |
Net income | 5,135 | 5,135 | |||||
Other comprehensive income (loss) | 16,744 | 16,744 | |||||
Stock-based compensation | 13,683 | 13,683 | |||||
Shares issued and forfeited, net, under stock plans including income tax benefits | 16,816 | (3,682) | 20,498 | ||||
Repurchase of common stock | (37,387) | (37,387) | |||||
Repurchase of restricted stock and performance shares for tax withholdings | (5,311) | (5,311) | |||||
Ending Balance at Dec. 31, 2017 | $ 764,597 | $ 702 | $ 610,345 | $ 550,866 | $ (319,960) | $ (77,356) | |
[1] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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 STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Issuance of shares of common stock for acquisition of PAY.ON | 227,917 | ||
Repurchase of common stock, shares | 1,653,573 | 3,020,926 | |
PAY.ON RSAs [Member] | |||
Issuance of shares under stock plan portion of PAY.ON acquisition agreement | 476,750 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities: | ||||
Net income | $ 5,135 | $ 129,535 | [1] | $ 85,436 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||||
Depreciation | 24,871 | 22,584 | 21,656 | |
Amortization | 77,353 | 80,870 | 75,775 | |
Amortization of deferred debt issuance costs | 4,286 | 5,567 | 6,244 | |
Deferred income taxes | 21,660 | 17,702 | 19,328 | |
Stock-based compensation expense | 13,683 | 43,613 | 18,380 | |
Gain on sale of available-for-sale equity securities | (24,465) | |||
Gain on sale of CFS assets | (151,463) | |||
Other | 435 | 806 | 2,725 | |
Changes in operating assets and liabilities, net of impact of acquisitions: | ||||
Receivables | (8,243) | (76,460) | (11,355) | |
Accounts payable | (1,700) | (13,920) | 8,557 | |
Accrued employee compensation | 94 | 18,060 | (1,998) | |
Current income taxes | (4,227) | 14,510 | (8,244) | |
Deferred revenue | 439 | 3,015 | (4,513) | |
Other current and noncurrent assets and liabilities | 12,411 | 5,411 | 468 | |
Net cash flows from operating activities | 146,197 | 99,830 | 187,994 | |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (25,717) | (40,812) | (27,283) | |
Purchases of software and distribution rights | (28,697) | (22,268) | (21,622) | |
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) | ||
Other | (7,000) | (7,000) | ||
Net cash flows from investing activities | (54,414) | 129,633 | (199,961) | |
Cash flows from financing activities: | ||||
Proceeds from issuance of common stock | 2,958 | 2,987 | 3,104 | |
Proceeds from exercises of stock options | 13,872 | 9,325 | 12,175 | |
Repurchases of common stock | (37,387) | (60,089) | ||
Repurchase of restricted stock and performance shares for tax withholdings | (5,311) | (2,975) | (4,649) | |
Proceeds from revolving credit facility | 67,000 | 76,000 | 298,000 | |
Proceeds from term portion of credit agreement | 415,000 | |||
Repayments of revolving credit facility | (153,000) | (166,000) | (164,000) | |
Repayments of term portion of credit agreement | (386,040) | (95,293) | (87,352) | |
Payments on other debt and capital leases | (9,900) | (14,376) | (12,638) | |
Payment for debt issuance costs | (5,340) | (655) | ||
Net cash flows from financing activities | (98,148) | (251,076) | 44,640 | |
Effect of exchange rate fluctuations on cash | 322 | (4,873) | (7,735) | |
Net increase (decrease) in cash and cash equivalents | (6,043) | (26,486) | 24,938 | |
Cash and cash equivalents, beginning of period | 75,753 | 102,239 | 77,301 | |
Cash and cash equivalents, end of period | 69,710 | 75,753 | 102,239 | |
Supplemental cash flow information | ||||
Income taxes paid, net | 37,817 | 19,081 | 24,036 | |
Interest paid | $ 34,976 | $ 35,053 | $ 35,183 | |
[1] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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. |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 banks, financial intermediaries, merchants, and corporates, 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. 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. 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 Software as a Service (“SaaS”) and Platform as a Service (“Platform”) 605-25, Revenue Recognition – Multiple-Element Arrangements, The Company enters into SaaS-based and Platform-based arrangements that may consist of multiple service deliverables including initial implementation and setup services, on-going on-demand on-demand on-going add-on SaaS and Platform 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. SaaS and Platform costs include payment card interchange fees, which assessments payable to banks and payment card processing fees are included in cost of revenue in the accompanying consolidated statements of operations. License. 985-605, Revenue Recognition: Software 985-605 985-605, 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, percentage-of-completion percentage-of-completion percentage-of-completion percentage-of-completion to-date percentage-of-completion 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 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 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 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 non-substantive 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 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. Multiple Arrangements. Deferred Revenue. Receivables and Concentration of Credit Risk. December 31, 2017 2016 Billed Receivables $ 240,137 $ 250,116 Allowance for doubtful accounts (4,799 ) (3,873 ) Billed, net 235,338 246,243 Accrued Receivables 27,507 21,919 Receivables, net $ 262,845 $ 268,162 No customer accounted for more than 10% of the Company’s consolidated receivables balance as of December 31, 2017 or 2016. 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, 2017 2016 2015 Balance, beginning of period $ (3,873 ) $ (5,045 ) $ (4,806 ) Provision increase (2,086 ) (1,595 ) (2,425 ) Amounts written off, net of recoveries 1,305 2,551 2,088 Foreign currency translation adjustments and other (145 ) 216 98 Balance, end of period $ (4,799 ) $ (3,873 ) $ (5,045 ) Provision (increases) decreases recorded in general and administrative expenses during the years ended December 31, 2017, 2016, and 2015, 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, 2017 2016 Settlement deposits $ 22,282 $ 10,496 Settlement receivables 30,063 14,327 Other 5,781 8,755 Total other current assets $ 58,126 $ 33,578 December 31, 2017 2016 Settlement payables $ 48,953 $ 24,016 Accrued interest 7,291 7,356 Vendor financed licenses 1,862 9,213 Royalties payable 9,264 7,197 Other 35,534 31,059 Total other current liabilities $ 102,904 $ 78,841 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, 2017 and 2016 were $238.9 million and $270.0 million, respectively. Property and Equipment Property and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over their estimated useful lives based on asset class. As of December 31, 2017 and 2016, net property and equipment consisted of the following (in thousands): Useful Lives 2017 2016 Computer and office equipment 3 to 5 years $ 123,804 $ 105,692 Leasehold improvements Lesser of useful life of improvement or remaining life of lease 32,364 33,093 Furniture and fixtures 7 years 12,158 11,145 Building and improvements 7 - 30 years 12,651 10,391 Land Non depreciable 1,785 1,785 182,762 162,106 Less: accumulated depreciation and amortization (102,534 ) (83,156 ) Property and equipment, net $ 80,228 $ 78,950 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 internal-use 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 Fair Value 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. The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. The fair value of the Company’s Senior Notes was $305.7 million and $309.8 million at December 31, 2017 and December 31, 2016, respectively. The fair values of cash and cash equivalents approximate the carrying values due to the short period of time to maturity (Level 2 of the fair value hierarchy). Goodwill and Other Intangibles In accordance with ASC 350, Intangibles – Goodwill and Other 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 as discussed in Note 10, Segment Information The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as Company-specific risk factors. Operational management, considering industry and Company-specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and low long-term growth rates. If the recoverability test indicates potential impairment, the Company calculates an implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in a manner similar to how goodwill is calculated in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to 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. Other intangible assets, which include customer relationships and trademarks and trade names, 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, 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 (loss). Transaction gains and losses, including those related to intercompany accounts, that are not considered to be of a long-term investment nature are included in the determination of net income. Transaction gains and losses, including those related to intercompany accounts, that are considered to be of a long-term investment nature are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company periodically assesses its tax exposures and establishes, or adjusts, estimated unrecognized tax benefits for probable assessments by taxing authorities, including the Internal Revenue Service (“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 January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU 2017-04”), Simplifying the Test for Goodwill Impairment 2017-04, In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting Compensation – Stock Compensation 2017-09, the vesting conditions of the modified award are the same as the conditions of the original award immediately before the original award is modified; 3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company has elected to early adopt these amendments prospectively in the second quarter of 2017. The adoption did not have a material effect on the Company’s financial position, results of operations, or cash flow as of and for the year-ended December 31, 2017. Recently Issued Accounting Standards Not Yet Effective In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue Recognition The Company will adopt ASC 606 on January 1, 2018 using the modified retrospective transition method which requires an adjustment to retained earnings for the cumulative effect of applying ASC 606 to active contracts as of the adoption date. During the first quarter of 2018, the Company will record its cumulative adjustment to retained earnings. As the modified retrospective transition method does not result in recast of the prior year financial statements, ASC 606 requires the Company to provide additional disclosures during the year of adoption for the amount by which each financial statement line item is affected by adoption of the standard and explanation of the reasons for significant changes. These disclosures will be included in the notes to the Company’s consolidated financial statements included in each of its quarterly reports on Form 10-Q 10-K The most significant ongoing impact from the adoption of ASC 606 relates to the changes in the timing and amount of recognition for software license revenues and sales commission expenses. As it relates to software license revenues, under ASC 606 the Company will recognize revenue in advance of billings (i.e. accrued receivables) for certain software license arrangements with extended payment terms as opposed to when payments become due and payable. Additionally, certain of those same software license arrangements will contain a significant financing component which will result in a change in the amount of the contract value that is allocated to software license revenue. The adjustment to the transaction price attributable to the significant financing component will be presented as an adjustment to the accrued receivable (i.e. net accrued receivable) and recognized as interest income over the term of the contract. Because the requirement to have vendor-specific objective evidence of fair value for undelivered elements is eliminated under ASC 606, 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 the longer service period. The Company’s cumulative adjustment to retained earnings is primarily comprised of the net accrued receivables arising from active software license arrangements with extended payment terms. Based on currently available information, the Company expects pre-tax The Company has determined that certain of its sales commissions meet the definition of incremental costs of obtaining a contract. Accordingly, the costs associated with those sales commissions will be capitalized and expense recognized as the related goods or services are transferred to the customer. Under current U.S. GAAP, the Company currently recognizes sales commission expenses as they are incurred. The Company is finalizing this component of its cumulative transition adjustment. The Company’s SaaS-based and Platform-based arrangements represent a single promise to provide continuous access (i.e. a stand-ready obligation) to its software solutions and their processing capabilities in the form of a service through one of the Company’s data centers. As each day of providing access to the software solution(s) is substantially the same and the customer simultaneously receives and consumes the benefits as access is provided, the Company has determined that its SaaS-based and Platform-based arrangements include a single performance obligation comprised of a series of distinct services. The Company’s SaaS-based and Platform-based arrangements may include fixed consideration, variable consideration or a combination of the two. Variable consideration in these arrangements is typically a function of a tier-based pricing structure that provides that customer with levels of transaction volume that “reset” with varying frequencies (e.g. monthly, quarterly or annually) and the corresponding rate per transaction within each level. Depending upon the structure of a particular arrangement, the Company will either: (1) allocate the variable amount to each distinct service period within the series and recognize revenue as each distinct service period is performed (i.e. direct allocation), (2) estimate total variable consideration at contract inception (giving consideration to any constraints that may apply) and recognize the total transaction price over the period to which it relates, or (3) apply ‘right to invoice’ practical expedient. The Company believes that revenue from most of its SaaS-based and Platform-based arrangements will be recognized under the direct allocation method or by applying the ‘right to invoice’ practical expedient, which will result in the same pattern of recognition as under current U.S. GAAP. 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, 2016-15 In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory 2016-16, 2016-16 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
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. |
Divestiture
Divestiture | 12 Months Ended |
Dec. 31, 2017 | |
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 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 banks, financial intermediaries, merchants, and corporates 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 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. 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, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Software and Other Intangible Assets | 4. Software and Other Intangible Assets At December 31, 2017, software net book value totaled $155.4 million, net of $230.7 million of accumulated amortization. Included in this amount is software marketed for external sale of $40.9 million. The remaining software net book value of $114.5 million is comprised of various software that has been acquired or developed for internal use. 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. 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, 2017, 2016, and 2015, totaled $12.8 million, $13.9 million, and $14.5 million, respectively. These software amortization expense amounts are reflected in cost of revenue in the consolidated statements of operations. 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, 2017, 2016, and 2015, totaled $45.2 million, $45.7 million, and $38.3 million, respectively. These software amortization expense amounts are reflected in depreciation and amortization in the consolidated statements of operations. The carrying amount and accumulated amortization of the Company’s other intangible assets that were subject to amortization at each balance sheet date are as follows (in thousands): December 31, 2017 December 31, 2016 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 305,218 $ (116,677 ) $ 188,541 $ 295,730 $ (96,356 ) $ 199,374 Trademarks and tradenames 16,646 (13,906 ) 2,740 16,019 (11,759 ) 4,260 $321,864 $(130,583) $191,281 $311,749 $(108,115) $203,634 Other intangible assets amortization expense recorded during the years ended December 31, 2017, 2016, and 2015, totaled $19.4 million, $21.2 million, and $23.0 million, respectively. Based on capitalized intangible assets at December 31, 2017, and assuming no impairment of these intangible assets, estimated amortization expense amounts in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Software Other 2018 $ 49,012 $ 19,145 2019 40,471 18,587 2020 31,550 17,688 2021 19,734 17,176 2022 8,383 17,015 Thereafter 6,236 101,670 Total $ 155,386 $ 191,281 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt As of December 31, 2017, the Company had $2.0 million, $394.3 million, and $300.0 million outstanding under its Revolving Credit Facility, Term Credit Facility, and Senior Notes, respectively, with up to $498.0 million of unused borrowings under the Revolving Credit Facility portion of the Credit Agreement, as amended. Credit Agreement On February 24, 2017, the Company entered into an amended and restated credit agreement (the “Credit Agreement”), replacing the existing 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 Credit Agreement consists of a five-year $500.0 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 $415.0 million 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 loans under the Credit Facility may be made to, and the letters of credit under the Revolving Credit Facility may be issued on behalf of the Company. On February 24, 2017, the Company borrowed an aggregate principal amount of $12.0 million under the Revolving Credit Facility and borrowed $415.0 million under the Term Credit Facility. 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 rate determined by reference to the costs of funds for U.S. dollar deposits for a one-month 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 rate 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’s obligations under the Credit Facility and cash management arrangements entered into with lenders under the Credit Facility (or affiliates thereof) and the obligations of the subsidiary guarantors are secured by first-priority security interests in substantially all assets of the Company and any guarantor, including 100% of the capital stock of ACI Worldwide Corp. and each domestic subsidiary of the Company, each domestic subsidiary of any guarantor, and 65% of the voting capital stock of each foreign subsidiary of the Company that is directly owned by the Company or a guarantor, in each case subject to certain exclusions set forth in the credit documentation governing the Credit Facility. The Credit Agreement contains a number of covenants that, among other things and subject to certain exceptions, restrict the Company’s ability and, as applicable, the ability of its subsidiaries to: create, incur, assume or suffer to exist any additional indebtedness; create, incur, assume or suffer to exist any liens; enter into agreements and other arrangements that include negative pledge clauses; pay dividends on capital stock or redeem, repurchase or retire capital stock or subordinated indebtedness; create restrictions on the payment of dividends or other distributions by subsidiaries; make investments, loans, advances and acquisitions; merge, consolidate or enter into any similar combination or sell assets, including equity interests of the subsidiaries; enter into sale and leaseback transactions; directly or indirectly engage in transactions with affiliates; alter in any material respect the character or conduct of the business; enter into amendments of or waivers under subordinated indebtedness, organizational documents and certain other material agreements; and hold certain assets and incur certain liabilities. The Credit Agreement also contains certain customary affirmative covenants and events of default. If an event of default, as specified in the Credit Agreement, shall occur and be continuing, the Company may be required to repay all amounts outstanding under the Credit Facility. 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. On June 15, 2017, the Letter of Credit was renewed at $5.0 million. The Company cancelled the Letter of Credit on August 24, 2017. 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, 2017 are as follows (amounts in thousands): Fiscal year ending December 31, (in thousands) 2018 $ 20,750 2019 31,125 2020 331,125 2021 41,500 2022 271,750 Total $ 696,250 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 February 24, 2022 and the Senior Notes will mature on August 15, 2020. The Revolving Credit Facility and Senior Notes do not amortize and the Term Credit Facility does amortize, with principal payable in consecutive quarterly installments. 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 27, 2017, the Company and the Administrative Agent entered into an amendment to the Credit Agreement. The amendment revised the definition of “Consolidated EBITDA” to exclude the expense from the BHMI judgment and related fees, expenses, and interest thereto, up to $50.0 million from the calculation in the period recorded. As of December 31, 2017, and at all times during the period, the Company was in compliance with its debt covenants. Total debt is comprised of the following (in thousands): (in thousands) As of December 31, As of December 31, Term credit facility $ 394,250 $ 365,290 Revolving credit facility 2,000 88,000 6.375% Senior Notes, due August 2020 300,000 300,000 Debt issuance costs (10,521 ) (9,372 ) Total debt 685,729 743,918 Less current portion of term credit facility 20,750 95,293 Less current portion of debt issuance costs (2,964 ) (4,970 ) Total long-term debt $ 667,943 $ 653,595 Other 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, $1.9 million and $9.0 million remained outstanding at December 31, 2017 and 2016, respectively. The Company recorded $1.5 million and $7.3 million in other current liabilities and $0.4 million and $1.7 million in other non-current |
Corporate Restructuring and Oth
Corporate Restructuring and Other Organizational Changes | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Corporate Restructuring and Other Organizational Changes | 6. Corporate Restructuring and Other Organizational Changes Employee Actions During the year-ended December 31, 2016, the Company paid approximately $0.8 million of termination costs related to terminations in prior periods. The Company had no severance liability outstanding at December 31, 2017 or 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 operations 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. Lease Terminations During the year-ended December 31, 2017, the Company ceased use of a portion of its leased facilities in Edison, NJ; Chantilly, VA; Charlotte, SC; Parsippany, PA; and Waltham, MA. As a result, the Company recorded additional expense of $2.4 million, which was recorded in general and administrative expenses in the accompanying consolidated statements of operations for the year-ended December 31, 2017. 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 operations 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, 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 Restructuring charges (adjustments) incurred, net — 2,447 2,447 Amounts paid during the period — (1,285 ) (1,285 ) Foreign currency translation adjustments — 224 224 Balance, December 31, 2017 $ — $ 5,945 $ 5,945 Of the $5.9 million facility closure liability, $1.8 million and $4.1 million is recorded in other current and noncurrent liabilities, respectively, in the accompanying consolidated balance sheet at December 31, 2017. |
Common Stock and Treasury Stock
Common Stock and Treasury Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Common Stock and Treasury Stock | 7. 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 1,653,573 shares for $37.4 million under the program during the year-ended December 31, 2017. Under the program to date, the Company has repurchased 41,782,966 shares for approximately $493.3 million. The maximum remaining authorized for purchase under the stock repurchase program was approximately $40.8 million as of December 31, 2017. Subsequent to December 31, 2017, the Company repurchased an additional 1,346,427 shares for $31.1 million under the repurchase program leaving a maximum of $9.7 million authorized for repurchases. On February 19, 2018, the Board of Directors approved $200.0 million for the stock repurchase program. 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, 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. Treasury shares issued during the year-ended December 31, 2017 included 1,204,559 and 560,174 shares issued pursuant to stock option exercises and RSA grants, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 8. 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, 2017 2016 2015 Weighted average shares outstanding: Basic weighted average shares outstanding 118,059 117,533 117,465 Add: Dilutive effect of stock options 1,385 1,314 1,454 Diluted weighted average shares outstanding 119,444 118,847 118,919 For the years ended December 31, 2017, 2016, and 2015, respectively, 3.9 million, 6.1 million, and 3.7 million, options to purchase shares and contingently issuable shares, were excluded from the diluted earnings per share computation as their effect would be anti-dilutive. Common stock outstanding as of December 31, 2017 and 2016 was 117,096,731 and 117,336,797, respectively. |
Other, net
Other, net | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other, net | 9. Other, net Other, net is comprised of the following items (in thousands): Years Ended December 31, 2017 2016 2015 Foreign currency transaction gains (losses) $ (2,619 ) $ 4,105 $ 1,946 Realized gain on available-for-sale — — 24,465 Total $ (2,619 ) $ 4,105 $ 26,411 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 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 operations. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information In January 2017, the Company announced a change in organizational structure to align with its strategic direction. As a result, beginning January 1, 2017, the Company reports financial performance based on its segments, ACI On Premise and ACI On Demand, and analyzes operating income as a measure of segment profitability. The Company’s chief operating decision maker (“CODM”), which is also our Chief Executive Officer focuses his review of consolidated financial information and the allocation of resources based upon the operating results, including revenues and operating income, for the segments ACI On Premise and ACI On Demand, separate from the Corporate operations. ACI On Premise on-premise ACI On Demand Revenue is attributed to the reportable segments based upon the product sold and mechanism for delivery to the customer. Expenses are attributed to the reportable segments in one of three methods, (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual products, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities as well as information technology and facilities related expense for which multiple segments benefit. The Company also allocates certain depreciation costs to the segments. Corporate and other consists of the corporate overhead costs that are not allocated to reportable segments. These overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity, amortization of acquisition-related intangibles, and other costs that are not considered when management evaluates segment performance. For the year-ended December 31, 2017, Corporate and other includes $46.7 million of general and administrative expense for the legal judgment discussed in Note 14. For the year-ended December 31, 2016, Corporate and other also includes revenue and operating income from the operations and sale of CFS related assets and liabilities of $15.4 million and $151.7 million, respectively. The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands): Years Ended December 31, 2017 2016 Revenues: ACI On Premise $ 598,590 $ 591,252 ACI On Demand 425,601 399,033 Corporate and other — 15,416 $ 1,024,191 $ 1,005,701 Depreciation and amortization expense: ACI On Premise $ 13,094 $ 14,581 ACI On Demand 34,171 29,385 Corporate and other 54,959 59,488 $102,224 $103,454 Stock-based compensation expense: ACI On Premise $ 2,234 $ 6,894 ACI On Demand 2,230 6,876 Corporate and other 9,219 29,843 $ 13,683 $ 43,613 Operating income (loss): ACI On Premise $ 331,766 $ 290,713 ACI On Demand (38,233 ) (38,885 ) Corporate and other (208,893 ) (30,698 ) $ 84,640 $ 221,130 As a result of the significant changes associated with the reorganization, which were implemented on a prospective basis only, as well as the changes in the Company through the PAY.ON acquisition that occurred late in 2015 and the CFS divestiture in 2016, ACI does not have all of the information that would be necessary to present segment data for 2015 under the new operating segments structure for operating expenses and results. The Company, likewise, does not have the necessary information to present the 2017 results under the prior segment view. This information is not available to management of the Company for its own internal use and it is impractical to obtain or generate the information. The Corporate and other segment includes revenue from the operations of CFS. Revenue for the year-ended December 31, 2015 under the new operating segments is as follows (in thousands): Year Ended December 31, 2015 Revenue: ACI On Premise $ 589,006 ACI On Demand 362,368 Corporate and other 94,603 $ 1,045,977 Prior to the reorganization, the Company’s CODM, together with other senior management personnel, focused 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, Europe/Middle East/Africa (“ EMEA”), and Asia/Pacific. The Company’s products were sold and supported through distribution networks covering these three geographic regions, with each distribution network having its own sales force. The Company supplemented its distribution networks with independent reseller and/or distributor arrangements. All administrative costs not directly attributable or reasonably allocable to a geographic segment were tracked in Corporate. The Company allocated 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 were allocated as a percentage of the headcount by segment. The Corporate line item consisted of the corporate overhead costs that were not allocated to operating segments. Corporate overhead costs related to human resources, finance, legal, accounting, merger and acquisition activity, and amortization of acquisition-related intangibles and software as well as other costs that were not considered when management evaluates segment performance. The following is selected segment financial data under the previous operating segments for the periods indicated (in thousands): Years Ended December 31, 2016 2015 Revenues: Americas - United States $ 527,431 $ 628,013 Americas - Other 116,718 82,548 EMEA 261,160 250,568 Asia/Pacific 100,392 84,848 $ 1,005,701 $ 1,045,977 Depreciation and amortization expense: Americas $ 27,951 $ 24,966 EMEA 3,830 3,670 Asia/Pacific 1,820 1,751 Corporate 69,853 67,044 $ 103,454 $ 97,431 Stock-based compensation expense: Americas $ 5,005 $ 1,638 EMEA 6,476 1,223 Asia/Pacific 605 36 Corporate 31,527 15,483 $ 43,613 $ 18,380 Income (loss) before income taxes: Americas $ 206,689 $ 111,382 EMEA 176,958 132,518 Asia/Pacific 62,422 41,658 Corporate (260,488 ) (172,185 ) $ 185,581 $ 113,373 Assets are not allocated to segments and the Company’s CODM does not evaluate operating segments using discrete asset information. The following is selected financial data for the Company’s geographical areas for the periods indicated (in thousands): Years Ended December 31, 2017 2016 2015 Revenues: United States $ 541,235 $ 527,431 $ 628,013 Other 482,956 478,270 417,964 $ 1,024,191 $ 1,005,701 $ 1,045,977 As of December 31, 2017 2016 Long lived assets United States $ 759,513 $ 752,442 Other 613,556 664,383 $ 1,373,069 $ 1,416,825 Additionally, the Company offers six primary solution 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, 2017 2016 2015 Retail payments $ 428,583 $ 422,262 $ 416,998 Bill payments 271,421 255,540 241,949 Digital channels 94,036 124,630 219,698 Payments risk management 80,326 67,649 66,386 Merchant payments 76,953 64,626 49,064 Real time payments 72,872 70,994 51,882 Total $ 1,024,191 $ 1,005,701 $ 1,045,977 During the years ended December 31, 2017, 2016, and 2015, approximately 19%, 22%, and 21%, respectively, of the Company’s total revenues were derived from licensing the BASE24 product line, which does not include the BASE24-eps CFS-related No single customer accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2017, 2016, and 2015. No other country outside the United States accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2017, 2016, and 2015. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | 11. Stock-Based Compensation Plans Employee Stock Purchase Plan On April 6, 2017, the Board of Directors approved the 2017 Employee Stock Purchase Plan (“2017 ESPP”), which was approved by shareholders at the 2017 Annual Shareholder meeting. The 2017 ESPP provides employees with an opportunity to purchase shares of Common Stock in the Company. The 1999 Employee Stock Purchase Plan terminated upon the August 1, 2017 effective date of the 2017 ESPP. Under the Company’s 2017 ESPP a total of 3,000,000 shares of the Company’s common stock have been reserved for issuance to eligible employees. Participating employees are permitted to designate up to the lesser of $25,000 or 10% of their annual base compensation, for the purchase of common stock under the ESPP. Purchases under the ESPP are made one calendar month after the end of each fiscal quarter. The price for shares of common stock purchased under the ESPP is 85% of the stock’s fair market value on the last business day of the three-month participation period. Shares issued under the ESPP during the years ended December 31, 2017, 2016, and 2015, totaled 158,194, 188,453, and 162,058, respectively. Additionally, the discount offered pursuant to the Company’s ESPP discussed above is 15%, which exceeds the 5% non-compensatory 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 one-year 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 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 In-the-Money 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 Granted 864,800 20.12 Exercised (1,204,559 ) 11.52 Forfeited (268,417 ) 18.43 Expired (20,482 ) 20.11 Outstanding, December 31, 2017 6,162,717 $ 16.83 6.69 $ 35,976,295 Exercisable, December 31, 2017 3,486,892 $ 15.28 5.52 $ 25,770,089 The weighted-average grant date fair value of stock options granted during the years ended December 31, 2017, 2016, and 2015 was $6.24, $5.59, and $6.49, respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2017, 2016, and 2015 was $13.4 million, $6.8 million, and $12.4 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, 2017 2016 2015 Expected life (years) 5.6 5.9 5.9 Risk-free interest rate 1.9 % 1.2 % 1.4 % Expected volatility 29.4 % 29.7 % 32.1 % 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 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 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 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 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 — — Long-term Incentive Program Performance Share Awards During the years ended December 31, 2017, 2016, and 2015, pursuant to the Company’s 2016 Incentive Plan and 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 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 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. During the fourth quarter of the year-ended December 31, 2017, the Company revised the expected attainment rates for the awards granted in fiscal 2015 and 2016 from 100% to 0% and 65%, respectively, due to changes in actual and forecasted sales and operating income. The expected attainment rate for the 2017 grants remain at 100%. At December 31, 2015, the LTIPs granted in 2012 were earned by the employees. As the thresholds were not met for the performance goals 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 thresholds were not met for the performance goals for the LTIPs granted in 2013, no shares were issued in the first quarter of 2017. A summary of the nonvested LTIP Performance Shares are as follows: Nonvested LTIP Performance Shares Number of Weighted- 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 Granted 553,549 20.12 Forfeited (201,441 ) 18.87 Change in expected attainment for 2015 and 2016 grants (965,129 ) 18.75 Nonvested at December 31, 2017 1,125,035 $ 18.94 During the year-ended December 31, 2015 the Company had 548,671 LTIP shares vest. The Company withheld 196,169 of those shares to pay the employees’ portion of the minimum payroll withholding taxes for the year-ended December 31, 2015. Restricted Share Awards During the years ended December 31, 2017, 2016, and 2015, 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 Number of Weighted-Average Fair Value 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 Granted 560,174 20.61 Vested (120,869 ) 20.72 Forfeited (108,176 ) 20.39 Nonvested at December 31, 2017 503,237 $ 20.63 During the years ended December 31, 2017, 2016, and 2015, the Company had 120,869, 114,219, and 158,973 RSA shares vest, respectively. The Company withheld 3,311, 9,062, and 25,235 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 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. During the year-ended December 31, 2016, the first tranche of the June 9th grant vested at 90.4%. During the first quarter of the year-ended December 31, 2017, the Company revised the attainment rate for the second and third tranches of the June 9th grant and the September 15th grant from 100% to 98% due to actual EBITDA achieved. The Company recognizes compensation expense for PBRSAs on a straight-line basis over the requisite service periods. A summary of nonvested PBRSAs are as follows: Nonvested Performance-Based Restricted Share Awards Number of Performance-Based 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 Forfeited (11,604 ) 23.84 Vested (484,835 ) 22.82 Change in attainment for 2015 grants (13,592 ) 23.25 Nonvested as of December 31, 2017 173,636 $ 24.41 During the years ended December 31, 2017 and 2016, 484,835 and 169,567 shares of the PBRSAs vested. The Company withheld 178,351 and 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 had a requisite service period (vesting period) of 1.3 years and vested 50% on July 1, 2016 and 50% on July 1, 2017. Retention RSA awards granted to employees other than named executive officers had a vesting period of 0.8 years and vested 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 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 Vested (205,540 ) 17.89 Nonvested as of December 31, 2017 — $ — During the year-ended December 31, 2017 and 2016, 205,540 and 226,526 shares of the Retention RSAs vested, respectively. The Company withheld 75,198 and 76,421 of those respective 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 had requisite service periods of two years and vested 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 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 Forfeited (119,188 ) 23.60 Vested (119,188 ) 23.60 Nonvested at December 31, 2017 — $ — Total Shareholder Return Awards During the year-ended December 31, 2017, the Company granted total shareholder return (“TSR”) awards, pursuant to the 2016 Incentive Plan, to certain executive officers. TSRs are performance shares that are earned, if at all, based upon the Company’s total shareholder return as compared to a group of peer companies over a three-year performance period. The award payout can range from 0% to 200%. In order to determine the grant date fair value of the TSRs, a Monte Carlo simulation model is used. The Company recognizes compensation expense for the TSRs over a three-year performance period based on the grant date fair value. During the fourth quarter of the year-ended December 31, 2017, the Company revised the expected attainment rate for the awards granted in fiscal 2017 from 100% to 64% due to changes in the Company’s total shareholder return. The grant date fair value of the TSRs was estimated using the following weighted-average assumptions: Year Ended December 31, Expected life (years) 2.9 Interest rate 1.5 % Volatility 26.5 % Dividend Yield — A summary of nonvested TSRs are as follows: Nonvested Total Shareholder Return Awards Number of Weighted- Nonvested as of December 31, 2016 — $ — Granted 233,077 24.37 Forfeited (8,624 ) 24.37 Change in Attainment in 2017 (80,804 ) 24.37 Nonvested as of December 31, 2017 143,649 $ 24.37 As of December 31, 2017, there were unrecognized compensation costs of $8.2 million related to nonvested stock options, $6.9 million related to the nonvested RSAs, $11.6 million related to the LTIP performance shares, $0.6 million related to nonvested PBRSAs, and $2.5 million related to the TSRs, which the Company expects to recognize over weighted-average periods of 1.5 years, 1.9 years, 1.9 years, 0.4 years, and 2.1 years, respectively. The Company recorded stock-based compensation expenses recognized under ASC 718 during the years ended December 31, 2017, 2016, and 2015, related to stock options, LTIP Performance Shares, RSAs, PBRSAs, and the ESPP of $13.7 million, $43.6 million, and $18.4 million, respectively, with corresponding tax benefits of $1.7 million, $14.3 million, and $6.9 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, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 12. Employee Benefit Plans ACI 401(k) Plan The ACI 401(k) Plan is a defined contribution plan covering all domestic employees of the Company. Participants may contribute up to 75% of their annual eligible compensation up to a maximum of $18,000 (for employees who are under the age of 50 on December 31, 2017) or a maximum of $24,000 (for employees aged 50 or older on December 31, 2017). 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, 2017, 2016, and 2015 was $5.3 million, $5.5 million, and $6.1 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”) ACI-EMEA ACI-EMEA |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into U.S. law. The Tax Act makes broad and complex changes to the U.S. tax code that affects 2017 and later years. On December 22, 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes The Tax Act reduced the U.S. federal corporate income tax rate from 35% to 21%, effective January 1, 2018. In accordance with SAB 118, the Company has recorded a $15.0 million provisional tax charge amount for the year ended December 31, 2017 resulting from remeasuring of its net deferred tax assets and liabilities. The Company has also recorded a $20.9 million provisional tax charge amount for the year ended December 31, 2017 related to a one-time Other aspects of the Tax Act, including the “Global Intangible Low-Taxed Low-Taxed For financial reporting purposes, income before income taxes includes the following components (in thousands): Years Ended December 31, 2017 2016 2015 United States $ (42,863 ) $ 134,740 $ 52,563 Foreign 86,435 50,841 60,810 Total $ 43,572 $ 185,581 $ 113,373 The expense (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2017 2016 2015 Federal Current $ 2,586 $ 14,108 $ (6,889 ) Deferred 19,212 19,034 18,024 Total 21,798 33,142 11,135 State Current (1,857 ) 12,565 379 Deferred (1,324 ) (2,502 ) (4,096 ) Total (3,181 ) 10,063 (3,717 ) Foreign Current 16,048 11,671 15,117 Deferred 3,772 1,170 5,402 Total 19,820 12,841 20,519 Total $ 38,437 $ 56,046 $ 27,937 Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of operations are summarized as follows (in thousands): Years Ended December 31, 2017 2016 2015 Tax expense at federal rate of 35% $ 15,250 $ 64,953 $ 39,680 State income taxes, net of federal benefit (2,238 ) 7,060 (2,462 ) Change in valuation allowance (1,884 ) (8,524 ) (9,066 ) Foreign tax rate differential (15,622 ) (11,830 ) (5,710 ) Unrecognized tax benefit increase 3,007 1,045 2,977 Tax effect of foreign operations 5,532 5,988 261 Acquisition costs — 28 — Tax benefit of research & development (1,904 ) (1,088 ) (871 ) Transition tax 20,867 — — Revaluation of deferred tax balances 14,953 — — Performance based compensation 2,081 — — Domestic production activities deduction (3,793 ) (700 ) — Other 2,188 (886 ) 3,128 Income tax provision $ 38,437 $ 56,046 $ 27,937 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, 2017 are Ireland, Luxembourg 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, 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 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, 2017 2016 Deferred income tax assets: Net operating loss carryforwards $ 38,419 $ 65,351 Tax credits 37,305 25,173 Compensation 18,124 39,340 Deferred revenue 22,248 27,303 Other 9,055 6,279 Gross deferred income tax assets 125,151 163,446 Less: valuation allowance (7,808 ) (9,659 ) Net deferred income tax assets $ 117,343 $ 153,787 Deferred income tax liabilities: Depreciation and amortization $ (67,504 ) $ (102,657 ) Total deferred income tax liabilities (67,504 ) (102,657 ) Net deferred income taxes $ 49,839 $ 51,130 Deferred income taxes / liabilities included in the balance sheet are: Deferred income tax asset - noncurrent $ 66,749 $ 77,479 Deferred income tax liability - noncurrent (16,910 ) (26,349 ) Net deferred income taxes $ 49,839 $ 51,130 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, 2017, the Company decreased its valuation allowance by $1.9 million which relates primarily to a reduction in valuation allowance on U.S. state net operating losses. At December 31, 2017, the Company had domestic federal tax net operating losses (“NOLs”) of $104.6 million which will begin to expire in 2018. The Company had deferred tax assets equal to $6.2 million related to domestic state tax NOLs which will begin to expire in 2018. The Company does not have any valuation allowance against the federal tax NOLs, but has provided a $4.7 million valuation allowance against the deferred tax asset associated with the state NOLs. The Company had foreign tax NOLs of $39.8 million, of which $39.1 million may be utilized over an indefinite life, with the remainder expiring over the next 9 years. The Company has provided a $1.0 million valuation allowance against the deferred tax asset associated with the foreign NOLs. The Company had U.S. foreign tax credit carryforwards at December 31, 2017 of $26.1 million. No valuation allowance has been established against these credits. The U.S. foreign tax credits will begin to expire in 2022. The Company had foreign tax credit carryforwards in other foreign jurisdictions at December 31, 2017 of $1.9 million, of which $1.6 million may be utilized over an indefinite life, with the remainder expiring over the next 7 years. The Company has provided a $1.6 million valuation allowance against the tax benefit associated with these foreign credits. The Company had domestic federal alternative minimum tax credit carryforwards at December 31, 2017 of $3.1 million, which have an indefinite life. The Company also had domestic federal and state general business credit carryforwards at December 31, 2017 of $11.0 million and $0.7 million, respectively, which will begin to expire in 2019 and 2022, respectively. The unrecognized tax benefit at December 31, 2017 and 2016 was $27.2 million and $24.3 million, respectively, of which $21.5 million and $17.6 million, respectively, are included in other noncurrent liabilities in the consolidated balance sheet. Of the total unrecognized tax benefit amounts at December 31, 2017 and 2016, $25.9 million and $23.2 million, respectively, represent the net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate in respective years. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands): 2017 2016 2015 Balance of unrecognized tax benefits at beginning of year $ 24,278 $ 21,079 $ 14,780 Increases for tax positions of prior years 2,478 58 1,449 Decreases for tax positions of prior years (114 ) (361 ) (47 ) Increases for tax positions established for the current period 1,677 5,185 9,866 Decreases for settlements with taxing authorities (154 ) (167 ) (594 ) Reductions resulting from lapse of applicable statute of limitation (1,155 ) (1,310 ) (4,218 ) Adjustment resulting from foreign currency translation 227 (206 ) (157 ) Balance of unrecognized tax benefits at end of year $ 27,237 $ 24,278 $ 21,079 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 2013 are open for audit. In the foreign jurisdictions, the tax returns open for audit generally vary by jurisdiction between 2005 and 2016. The Company’s Indian income tax returns covering fiscal years 2005 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 $0.1 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, 2017 and 2016, $1.2 million and $1.9 million, respectively is accrued for the payment of interest and penalties related to income tax liabilities. The aggregate amount of interest and penalties expense (benefit) recorded in the statements of operations for the years ended December 31, 2017, 2016, and 2015 is $(0.8) million, $(0.2) million, and $(0.1) million, respectively. The Company previously considered all of the earnings in its non-U.S. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. 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, 2017, 2016, and 2015 was $24.1 million, $25.3 million, and $26.6 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 2018 $ 17,172 2019 15,352 2020 12,502 2021 8,723 2022 6,536 Thereafter 26,479 Total minimum lease payments $ 86,764 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 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. 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. disagreed with the verdicts and judgment, and after the trial court denied ACI Corp.’s post-judgment motions ACI Corp. perfected an appeal of the dismissal of its claims against BHMI and the judgment in favor of BHMI. On June 9, 2017, the Nebraska Supreme Court affirmed the District Court judgment. The Company recorded expense of $48.1 million during the year-ended December 31, 2017, of which $46.7 million is included in general and administrative expense and $1.4 million in interest expense in the accompanying consolidated statement of operations. The Company paid the judgment, including interest, during the year-ended December 31, 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 15. Accumulated Other Comprehensive Loss Activity within accumulated other comprehensive loss for the three years ended December 31, 2017, 2016, and 2015 were as follows: Unrealized gain on available-for-sale Foreign Accumulated 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 ) Other comprehensive income — 16,744 16,744 Balance at December 31, 2017 $ — $ (77,356 ) $ (77,356 ) |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 16. Quarterly Financial Data (unaudited) Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, (in thousands, except per share amounts) 2017 2017 2017 2017 2017 Revenues: Software as a service and platform as a service $ 99,447 $ 113,469 $ 99,761 $ 112,895 $ 425,572 License 59,381 54,180 50,017 129,546 293,124 Maintenance 54,471 56,009 56,349 55,242 222,071 Services 18,163 16,941 19,608 28,712 83,424 Total revenues 231,462 240,599 225,735 326,395 1,024,191 Operating expenses: Cost of revenue (1) 108,543 120,357 107,393 115,993 452,286 Research and development 37,285 34,969 33,935 30,732 136,921 Selling and marketing 27,137 28,817 25,236 26,695 107,885 General and administrative (2) 32,503 72,527 25,302 22,700 153,032 Depreciation and amortization 22,371 22,372 22,446 22,238 89,427 Total operating expenses 227,839 279,042 214,312 218,358 939,551 Operating income (loss) 3,623 (38,443 ) 11,423 108,037 84,640 Other income (expense): Interest expense (10,160 ) (10,664 ) (9,374 ) (8,815 ) (39,013 ) Interest income 106 150 165 143 564 Other, net 649 (1,766 ) (1,059 ) (443 ) (2,619 ) Total other income (expense) (9,405 ) (12,280 ) (10,268 ) (9,115 ) (41,068 ) Income (loss) before income taxes (5,782 ) (50,723 ) 1,155 98,922 43,572 Income tax expense (benefit) (4,174 ) (20,914 ) (2,233 ) 65,758 38,437 Net income (loss) $ (1,608 ) $ (29,809 ) $ 3,388 $ 33,164 $ 5,135 Earnings (loss) per share Basic $ (0.01 ) $ (0.25 ) $ 0.03 $ 0.28 $ 0.04 Diluted $ (0.01 ) $ (0.25 ) $ 0.03 $ 0.28 $ 0.04 (1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. (2) General and administrative expenses in the second quarter includes the BHMI judgment as discussed in Note 14. Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, (in thousands, except per share amounts) 2016 2016 2016 2016 2016 Revenues: Software as a service and platform as a service $ 111,736 $ 102,265 $ 96,169 $ 101,119 $ 411,289 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 Total revenues 226,066 219,930 216,975 342,730 1,005,701 Operating expenses: Cost of revenue (1) (2) 118,434 115,384 100,267 110,829 444,914 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 (loss) (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 revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. (2) The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting 2016-09”) 2016-09 |
Nature of Business and Summar25
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business ACI Worldwide, Inc., a Delaware corporation, and its subsidiaries (collectively referred to as “ACI” or the “Company”), develop, market, install, and support a broad line of software products and services primarily focused on facilitating electronic payments. In addition to its own products, the Company distributes, or acts as a sales agent for software developed by third parties. These products and services are used principally by banks, financial intermediaries, merchants, and corporates, 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. 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 Software as a Service (“SaaS”) and Platform as a Service (“Platform”) 605-25, Revenue Recognition – Multiple-Element Arrangements, The Company enters into SaaS-based and Platform-based arrangements that may consist of multiple service deliverables including initial implementation and setup services, on-going on-demand on-demand on-going add-on SaaS and Platform 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. SaaS and Platform costs include payment card interchange fees, which assessments payable to banks and payment card processing fees are included in cost of revenue in the accompanying consolidated statements of operations. License. 985-605, Revenue Recognition: Software 985-605 985-605, 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, percentage-of-completion percentage-of-completion percentage-of-completion percentage-of-completion to-date percentage-of-completion 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 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 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 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 non-substantive 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 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. Multiple Arrangements. Deferred Revenue. Receivables and Concentration of Credit Risk. December 31, 2017 2016 Billed Receivables $ 240,137 $ 250,116 Allowance for doubtful accounts (4,799 ) (3,873 ) Billed, net 235,338 246,243 Accrued Receivables 27,507 21,919 Receivables, net $ 262,845 $ 268,162 No customer accounted for more than 10% of the Company’s consolidated receivables balance as of December 31, 2017 or 2016. 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, 2017 2016 2015 Balance, beginning of period $ (3,873 ) $ (5,045 ) $ (4,806 ) Provision increase (2,086 ) (1,595 ) (2,425 ) Amounts written off, net of recoveries 1,305 2,551 2,088 Foreign currency translation adjustments and other (145 ) 216 98 Balance, end of period $ (4,799 ) $ (3,873 ) $ (5,045 ) Provision (increases) decreases recorded in general and administrative expenses during the years ended December 31, 2017, 2016, and 2015, 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, 2017 2016 Settlement deposits $ 22,282 $ 10,496 Settlement receivables 30,063 14,327 Other 5,781 8,755 Total other current assets $ 58,126 $ 33,578 December 31, 2017 2016 Settlement payables $ 48,953 $ 24,016 Accrued interest 7,291 7,356 Vendor financed licenses 1,862 9,213 Royalties payable 9,264 7,197 Other 35,534 31,059 Total other current liabilities $ 102,904 $ 78,841 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, 2017 and 2016 were $238.9 million and $270.0 million, respectively. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation of these assets is generally computed using the straight-line method over their estimated useful lives based on asset class. As of December 31, 2017 and 2016, net property and equipment consisted of the following (in thousands): Useful Lives 2017 2016 Computer and office equipment 3 to 5 years $ 123,804 $ 105,692 Leasehold improvements Lesser of useful life of improvement or remaining life of lease 32,364 33,093 Furniture and fixtures 7 years 12,158 11,145 Building and improvements 7 - 30 years 12,651 10,391 Land Non depreciable 1,785 1,785 182,762 162,106 Less: accumulated depreciation and amortization (102,534 ) (83,156 ) Property and equipment, net $ 80,228 $ 78,950 |
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 internal-use |
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 |
Fair Value | Fair Value 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. The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. The fair value of the Company’s Senior Notes was $305.7 million and $309.8 million at December 31, 2017 and December 31, 2016, respectively. The fair values of cash and cash equivalents approximate the carrying values due to the short period of time to maturity (Level 2 of the fair value hierarchy). |
Goodwill and Other Intangibles | Goodwill and Other Intangibles In accordance with ASC 350, Intangibles – Goodwill and Other 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 as discussed in Note 10, Segment Information The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as Company-specific risk factors. Operational management, considering industry and Company-specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and low long-term growth rates. If the recoverability test indicates potential impairment, the Company calculates an implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in a manner similar to how goodwill is calculated in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to 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. Other intangible assets, which include customer relationships and trademarks and trade names, 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, |
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 (loss). Transaction gains and losses, including those related to intercompany accounts, that are not considered to be of a long-term investment nature are included in the determination of net income. Transaction gains and losses, including those related to intercompany accounts, that are considered to be of a long-term investment nature are reflected in the consolidated financial statements as a component of accumulated other comprehensive income (loss). |
Income Taxes | Income Taxes The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. 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 January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU 2017-04”), Simplifying the Test for Goodwill Impairment 2017-04, In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting Compensation – Stock Compensation 2017-09, the vesting conditions of the modified award are the same as the conditions of the original award immediately before the original award is modified; 3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company has elected to early adopt these amendments prospectively in the second quarter of 2017. The adoption did not have a material effect on the Company’s financial position, results of operations, or cash flow as of and for the year-ended December 31, 2017. |
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 The Company will adopt ASC 606 on January 1, 2018 using the modified retrospective transition method which requires an adjustment to retained earnings for the cumulative effect of applying ASC 606 to active contracts as of the adoption date. During the first quarter of 2018, the Company will record its cumulative adjustment to retained earnings. As the modified retrospective transition method does not result in recast of the prior year financial statements, ASC 606 requires the Company to provide additional disclosures during the year of adoption for the amount by which each financial statement line item is affected by adoption of the standard and explanation of the reasons for significant changes. These disclosures will be included in the notes to the Company’s consolidated financial statements included in each of its quarterly reports on Form 10-Q 10-K The most significant ongoing impact from the adoption of ASC 606 relates to the changes in the timing and amount of recognition for software license revenues and sales commission expenses. As it relates to software license revenues, under ASC 606 the Company will recognize revenue in advance of billings (i.e. accrued receivables) for certain software license arrangements with extended payment terms as opposed to when payments become due and payable. Additionally, certain of those same software license arrangements will contain a significant financing component which will result in a change in the amount of the contract value that is allocated to software license revenue. The adjustment to the transaction price attributable to the significant financing component will be presented as an adjustment to the accrued receivable (i.e. net accrued receivable) and recognized as interest income over the term of the contract. Because the requirement to have vendor-specific objective evidence of fair value for undelivered elements is eliminated under ASC 606, 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 the longer service period. The Company’s cumulative adjustment to retained earnings is primarily comprised of the net accrued receivables arising from active software license arrangements with extended payment terms. Based on currently available information, the Company expects pre-tax The Company has determined that certain of its sales commissions meet the definition of incremental costs of obtaining a contract. Accordingly, the costs associated with those sales commissions will be capitalized and expense recognized as the related goods or services are transferred to the customer. Under current U.S. GAAP, the Company currently recognizes sales commission expenses as they are incurred. The Company is finalizing this component of its cumulative transition adjustment. The Company’s SaaS-based and Platform-based arrangements represent a single promise to provide continuous access (i.e. a stand-ready obligation) to its software solutions and their processing capabilities in the form of a service through one of the Company’s data centers. As each day of providing access to the software solution(s) is substantially the same and the customer simultaneously receives and consumes the benefits as access is provided, the Company has determined that its SaaS-based and Platform-based arrangements include a single performance obligation comprised of a series of distinct services. The Company’s SaaS-based and Platform-based arrangements may include fixed consideration, variable consideration or a combination of the two. Variable consideration in these arrangements is typically a function of a tier-based pricing structure that provides that customer with levels of transaction volume that “reset” with varying frequencies (e.g. monthly, quarterly or annually) and the corresponding rate per transaction within each level. Depending upon the structure of a particular arrangement, the Company will either: (1) allocate the variable amount to each distinct service period within the series and recognize revenue as each distinct service period is performed (i.e. direct allocation), (2) estimate total variable consideration at contract inception (giving consideration to any constraints that may apply) and recognize the total transaction price over the period to which it relates, or (3) apply ‘right to invoice’ practical expedient. The Company believes that revenue from most of its SaaS-based and Platform-based arrangements will be recognized under the direct allocation method or by applying the ‘right to invoice’ practical expedient, which will result in the same pattern of recognition as under current U.S. GAAP. 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, 2016-15 In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory 2016-16, 2016-16 |
Earnings per share | Earnings per share is computed in accordance with ASC 260, Earnings per Share |
Segment Information | In January 2017, the Company announced a change in organizational structure to align with its strategic direction. As a result, beginning January 1, 2017, the Company reports financial performance based on its segments, ACI On Premise and ACI On Demand, and analyzes operating income as a measure of segment profitability. The Company’s chief operating decision maker (“CODM”), which is also our Chief Executive Officer focuses his review of consolidated financial information and the allocation of resources based upon the operating results, including revenues and operating income, for the segments ACI On Premise and ACI On Demand, separate from the Corporate operations. ACI On Premise on-premise ACI On Demand Revenue is attributed to the reportable segments based upon the product sold and mechanism for delivery to the customer. Expenses are attributed to the reportable segments in one of three methods, (1) direct costs of the segment, (2) labor costs that can be attributed based upon time tracking for individual products, or (3) costs that are allocated. Allocated costs are generally marketing and sales related activities as well as information technology and facilities related expense for which multiple segments benefit. The Company also allocates certain depreciation costs to the segments. Corporate and other consists of the corporate overhead costs that are not allocated to reportable segments. These overhead costs relate to human resources, finance, legal, accounting, merger and acquisition activity, amortization of acquisition-related intangibles, and other costs that are not considered when management evaluates segment performance. For the year-ended December 31, 2017, Corporate and other includes $46.7 million of general and administrative expense for the legal judgment discussed in Note 14. For the year-ended December 31, 2016, Corporate and other also includes revenue and operating income from the operations and sale of CFS related assets and liabilities of $15.4 million and $151.7 million, respectively. |
Nature of Business and Summar26
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Receivables and Concentration of Credit Risk | Receivables and Concentration of Credit Risk. December 31, 2017 2016 Billed Receivables $ 240,137 $ 250,116 Allowance for doubtful accounts (4,799 ) (3,873 ) Billed, net 235,338 246,243 Accrued Receivables 27,507 21,919 Receivables, net $ 262,845 $ 268,162 |
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, 2017 2016 2015 Balance, beginning of period $ (3,873 ) $ (5,045 ) $ (4,806 ) Provision increase (2,086 ) (1,595 ) (2,425 ) Amounts written off, net of recoveries 1,305 2,551 2,088 Foreign currency translation adjustments and other (145 ) 216 98 Balance, end of period $ (4,799 ) $ (3,873 ) $ (5,045 ) |
Components of Other Current Assets and Other Current Liabilities | Other Current Assets and Other Current Liabilities December 31, 2017 2016 Settlement deposits $ 22,282 $ 10,496 Settlement receivables 30,063 14,327 Other 5,781 8,755 Total other current assets $ 58,126 $ 33,578 December 31, 2017 2016 Settlement payables $ 48,953 $ 24,016 Accrued interest 7,291 7,356 Vendor financed licenses 1,862 9,213 Royalties payable 9,264 7,197 Other 35,534 31,059 Total other current liabilities $ 102,904 $ 78,841 |
Property and Equipment Estimated Useful Lives | As of December 31, 2017 and 2016, net property and equipment consisted of the following (in thousands): Useful Lives 2017 2016 Computer and office equipment 3 to 5 years $ 123,804 $ 105,692 Leasehold improvements Lesser of useful life of improvement or remaining life of lease 32,364 33,093 Furniture and fixtures 7 years 12,158 11,145 Building and improvements 7 - 30 years 12,651 10,391 Land Non depreciable 1,785 1,785 182,762 162,106 Less: accumulated depreciation and amortization (102,534 ) (83,156 ) Property and equipment, net $ 80,228 $ 78,950 |
Acquisitions (Tables)
Acquisitions (Tables) - PAY.ON [Member] | 12 Months Ended |
Dec. 31, 2017 | |
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 |
Software and Other Intangible28
Software and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 December 31, 2016 Gross Accumulated Net Gross Accumulated Net Customer relationships $ 305,218 $ (116,677 ) $ 188,541 $ 295,730 $ (96,356 ) $ 199,374 Trademarks and tradenames 16,646 (13,906 ) 2,740 16,019 (11,759 ) 4,260 $321,864 $(130,583) $191,281 $311,749 $(108,115) $203,634 |
Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Software and Other Intangible Assets | Based on capitalized intangible assets at December 31, 2017, and assuming no impairment of these intangible assets, estimated amortization expense amounts in future fiscal years are as follows (in thousands): Fiscal Year Ending December 31, Software Other 2018 $ 49,012 $ 19,145 2019 40,471 18,587 2020 31,550 17,688 2021 19,734 17,176 2022 8,383 17,015 Thereafter 6,236 101,670 Total $ 155,386 $ 191,281 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Maturities on Long-Term Debt Outstanding | Maturities on long-term debt outstanding at December 31, 2017 are as follows (amounts in thousands): Fiscal year ending December 31, (in thousands) 2018 $ 20,750 2019 31,125 2020 331,125 2021 41,500 2022 271,750 Total $ 696,250 |
Carrying Value of Debt | Total debt is comprised of the following (in thousands): (in thousands) As of December 31, As of December 31, Term credit facility $ 394,250 $ 365,290 Revolving credit facility 2,000 88,000 6.375% Senior Notes, due August 2020 300,000 300,000 Debt issuance costs (10,521 ) (9,372 ) Total debt 685,729 743,918 Less current portion of term credit facility 20,750 95,293 Less current portion of debt issuance costs (2,964 ) (4,970 ) Total long-term debt $ 667,943 $ 653,595 |
Corporate Restructuring and O30
Corporate Restructuring and Other Organizational Changes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 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 Restructuring charges (adjustments) incurred, net — 2,447 2,447 Amounts paid during the period — (1,285 ) (1,285 ) Foreign currency translation adjustments — 224 224 Balance, December 31, 2017 $ — $ 5,945 $ 5,945 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Weighted average shares outstanding: Basic weighted average shares outstanding 118,059 117,533 117,465 Add: Dilutive effect of stock options 1,385 1,314 1,454 Diluted weighted average shares outstanding 119,444 118,847 118,919 |
Other, net (Tables)
Other, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other | Other, net is comprised of the following items (in thousands): Years Ended December 31, 2017 2016 2015 Foreign currency transaction gains (losses) $ (2,619 ) $ 4,105 $ 1,946 Realized gain on available-for-sale — — 24,465 Total $ (2,619 ) $ 4,105 $ 26,411 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Segment Financial Data, Revenues, Operating Income (Loss) and Income (Loss) Before Income Taxes | The following is selected financial data for the Company’s reportable segments for the periods indicated (in thousands): Years Ended December 31, 2017 2016 Revenues: ACI On Premise $ 598,590 $ 591,252 ACI On Demand 425,601 399,033 Corporate and other — 15,416 $ 1,024,191 $ 1,005,701 Depreciation and amortization expense: ACI On Premise $ 13,094 $ 14,581 ACI On Demand 34,171 29,385 Corporate and other 54,959 59,488 $102,224 $103,454 Stock-based compensation expense: ACI On Premise $ 2,234 $ 6,894 ACI On Demand 2,230 6,876 Corporate and other 9,219 29,843 $ 13,683 $ 43,613 Operating income (loss): ACI On Premise $ 331,766 $ 290,713 ACI On Demand (38,233 ) (38,885 ) Corporate and other (208,893 ) (30,698 ) $ 84,640 $ 221,130 |
Revenue under New Operating Segments | Revenue for the year-ended December 31, 2015 under the new operating segments is as follows (in thousands): Year Ended December 31, 2015 Revenue: ACI On Premise $ 589,006 ACI On Demand 362,368 Corporate and other 94,603 $ 1,045,977 |
Selected Segment Financial Data, Revenues and Long lived Assets | The following is selected financial data for the Company’s geographical areas for the periods indicated (in thousands): Years Ended December 31, 2017 2016 2015 Revenues: United States $ 541,235 $ 527,431 $ 628,013 Other 482,956 478,270 417,964 $ 1,024,191 $ 1,005,701 $ 1,045,977 As of December 31, 2017 2016 Long lived assets United States $ 759,513 $ 752,442 Other 613,556 664,383 $ 1,373,069 $ 1,416,825 |
Revenues, by Product Line | in each of the geographic regions listed above. Following are revenues, by product and services (in thousands): Years Ended December 31, 2017 2016 2015 Retail payments $ 428,583 $ 422,262 $ 416,998 Bill payments 271,421 255,540 241,949 Digital channels 94,036 124,630 219,698 Payments risk management 80,326 67,649 66,386 Merchant payments 76,953 64,626 49,064 Real time payments 72,872 70,994 51,882 Total $ 1,024,191 $ 1,005,701 $ 1,045,977 |
Scenario Previously Reported | |
Selected Segment Financial Data, Revenues, Operating Income (Loss) and Income (Loss) Before Income Taxes | The following is selected segment financial data under the previous operating segments for the periods indicated (in thousands): Years Ended December 31, 2016 2015 Revenues: Americas - United States $ 527,431 $ 628,013 Americas - Other 116,718 82,548 EMEA 261,160 250,568 Asia/Pacific 100,392 84,848 $ 1,005,701 $ 1,045,977 Depreciation and amortization expense: Americas $ 27,951 $ 24,966 EMEA 3,830 3,670 Asia/Pacific 1,820 1,751 Corporate 69,853 67,044 $ 103,454 $ 97,431 Stock-based compensation expense: Americas $ 5,005 $ 1,638 EMEA 6,476 1,223 Asia/Pacific 605 36 Corporate 31,527 15,483 $ 43,613 $ 18,380 Income (loss) before income taxes: Americas $ 206,689 $ 111,382 EMEA 176,958 132,518 Asia/Pacific 62,422 41,658 Corporate (260,488 ) (172,185 ) $ 185,581 $ 113,373 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Stock Options Issued Pursuant to Stock Incentive Plans | A summary of stock options issued under the various Stock Incentive Plans previously described and changes is as follows: Number of Weighted- Weighted- Aggregate In-the-Money 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 Granted 864,800 20.12 Exercised (1,204,559 ) 11.52 Forfeited (268,417 ) 18.43 Expired (20,482 ) 20.11 Outstanding, December 31, 2017 6,162,717 $ 16.83 6.69 $ 35,976,295 Exercisable, December 31, 2017 3,486,892 $ 15.28 5.52 $ 25,770,089 |
Summary of Nonvested Restricted Share Awards and Changes During Period | A summary of nonvested RSAs are as follows: Nonvested Restricted Share Awards Number of Weighted-Average Fair Value 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 Granted 560,174 20.61 Vested (120,869 ) 20.72 Forfeited (108,176 ) 20.39 Nonvested at December 31, 2017 503,237 $ 20.63 |
Monte Carlo Simulation [Member] | |
Estimated Fair Value of Options Granted Pricing Model with Weighted-Average Assumptions | 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 — — |
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, 2017 2016 2015 Expected life (years) 5.6 5.9 5.9 Risk-free interest rate 1.9 % 1.2 % 1.4 % Expected volatility 29.4 % 29.7 % 32.1 % Expected dividend yield — — — |
TSR Plan [Member] | |
Summary of Nonvested Performance Share Awards and Changes During Period | A summary of nonvested TSRs are as follows: Nonvested Total Shareholder Return Awards Number of Weighted- Nonvested as of December 31, 2016 — $ — Granted 233,077 24.37 Forfeited (8,624 ) 24.37 Change in Attainment in 2017 (80,804 ) 24.37 Nonvested as of December 31, 2017 143,649 $ 24.37 |
LTIP Performance Shares [Member] | |
Summary of Nonvested Performance Share Awards and Changes During Period | A summary of the nonvested LTIP Performance Shares are as follows: Nonvested LTIP Performance Shares Number of Weighted- 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 Granted 553,549 20.12 Forfeited (201,441 ) 18.87 Change in expected attainment for 2015 and 2016 grants (965,129 ) 18.75 Nonvested at December 31, 2017 1,125,035 $ 18.94 |
Total Shareholder Return [Member] | Monte Carlo Simulation [Member] | |
Estimated Fair Value of Options Granted Pricing Model with Weighted-Average Assumptions | The grant date fair value of the TSRs was estimated using the following weighted-average assumptions: Year Ended December 31, Expected life (years) 2.9 Interest rate 1.5 % Volatility 26.5 % Dividend Yield — |
Performance-Based Restricted Share Awards [Member] | |
Summary of Nonvested Performance Share Awards and Changes During Period | A summary of nonvested PBRSAs are as follows: Nonvested Performance-Based Restricted Share Awards Number of Performance-Based 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 Forfeited (11,604 ) 23.84 Vested (484,835 ) 22.82 Change in attainment for 2015 grants (13,592 ) 23.25 Nonvested as of December 31, 2017 173,636 $ 24.41 |
Retention RSAs [Member] | |
Summary of Nonvested Restricted Share Awards and Changes During Period | A summary of nonvested Retention RSAs 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 Vested (205,540 ) 17.89 Nonvested as of December 31, 2017 — $ — |
Restricted Share Awards (RSAs) [Member] | PAY.ON [Member] | |
Summary of Nonvested Restricted Share Awards and Changes During Period | A summary of nonvested PAY.ON RSAs 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 Forfeited (119,188 ) 23.60 Vested (119,188 ) 23.60 Nonvested at December 31, 2017 — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 United States $ (42,863 ) $ 134,740 $ 52,563 Foreign 86,435 50,841 60,810 Total $ 43,572 $ 185,581 $ 113,373 |
Income Tax Expense (Benefit) | The expense (benefit) for income taxes consists of the following (in thousands): Years Ended December 31, 2017 2016 2015 Federal Current $ 2,586 $ 14,108 $ (6,889 ) Deferred 19,212 19,034 18,024 Total 21,798 33,142 11,135 State Current (1,857 ) 12,565 379 Deferred (1,324 ) (2,502 ) (4,096 ) Total (3,181 ) 10,063 (3,717 ) Foreign Current 16,048 11,671 15,117 Deferred 3,772 1,170 5,402 Total 19,820 12,841 20,519 Total $ 38,437 $ 56,046 $ 27,937 |
Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Operations | Differences between the income tax expense computed at the statutory federal income tax rate and per the consolidated statements of operations are summarized as follows (in thousands): Years Ended December 31, 2017 2016 2015 Tax expense at federal rate of 35% $ 15,250 $ 64,953 $ 39,680 State income taxes, net of federal benefit (2,238 ) 7,060 (2,462 ) Change in valuation allowance (1,884 ) (8,524 ) (9,066 ) Foreign tax rate differential (15,622 ) (11,830 ) (5,710 ) Unrecognized tax benefit increase 3,007 1,045 2,977 Tax effect of foreign operations 5,532 5,988 261 Acquisition costs — 28 — Tax benefit of research & development (1,904 ) (1,088 ) (871 ) Transition tax 20,867 — — Revaluation of deferred tax balances 14,953 — — Performance based compensation 2,081 — — Domestic production activities deduction (3,793 ) (700 ) — Other 2,188 (886 ) 3,128 Income tax provision $ 38,437 $ 56,046 $ 27,937 |
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, 2017 2016 Deferred income tax assets: Net operating loss carryforwards $ 38,419 $ 65,351 Tax credits 37,305 25,173 Compensation 18,124 39,340 Deferred revenue 22,248 27,303 Other 9,055 6,279 Gross deferred income tax assets 125,151 163,446 Less: valuation allowance (7,808 ) (9,659 ) Net deferred income tax assets $ 117,343 $ 153,787 Deferred income tax liabilities: Depreciation and amortization $ (67,504 ) $ (102,657 ) Total deferred income tax liabilities (67,504 ) (102,657 ) Net deferred income taxes $ 49,839 $ 51,130 Deferred income taxes / liabilities included in the balance sheet are: Deferred income tax asset - noncurrent $ 66,749 $ 77,479 Deferred income tax liability - noncurrent (16,910 ) (26,349 ) Net deferred income taxes $ 49,839 $ 51,130 |
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): 2017 2016 2015 Balance of unrecognized tax benefits at beginning of year $ 24,278 $ 21,079 $ 14,780 Increases for tax positions of prior years 2,478 58 1,449 Decreases for tax positions of prior years (114 ) (361 ) (47 ) Increases for tax positions established for the current period 1,677 5,185 9,866 Decreases for settlements with taxing authorities (154 ) (167 ) (594 ) Reductions resulting from lapse of applicable statute of limitation (1,155 ) (1,310 ) (4,218 ) Adjustment resulting from foreign currency translation 227 (206 ) (157 ) Balance of unrecognized tax benefits at end of year $ 27,237 $ 24,278 $ 21,079 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2018 $ 17,172 2019 15,352 2020 12,502 2021 8,723 2022 6,536 Thereafter 26,479 Total minimum lease payments $ 86,764 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Activity within Accumulated Other Comprehensive Loss | Activity within accumulated other comprehensive loss for the three years ended December 31, 2017, 2016, and 2015 were as follows: Unrealized gain on available-for-sale Foreign Accumulated 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 ) Other comprehensive income — 16,744 16,744 Balance at December 31, 2017 $ — $ (77,356 ) $ (77,356 ) |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, (in thousands, except per share amounts) 2017 2017 2017 2017 2017 Revenues: Software as a service and platform as a service $ 99,447 $ 113,469 $ 99,761 $ 112,895 $ 425,572 License 59,381 54,180 50,017 129,546 293,124 Maintenance 54,471 56,009 56,349 55,242 222,071 Services 18,163 16,941 19,608 28,712 83,424 Total revenues 231,462 240,599 225,735 326,395 1,024,191 Operating expenses: Cost of revenue (1) 108,543 120,357 107,393 115,993 452,286 Research and development 37,285 34,969 33,935 30,732 136,921 Selling and marketing 27,137 28,817 25,236 26,695 107,885 General and administrative (2) 32,503 72,527 25,302 22,700 153,032 Depreciation and amortization 22,371 22,372 22,446 22,238 89,427 Total operating expenses 227,839 279,042 214,312 218,358 939,551 Operating income (loss) 3,623 (38,443 ) 11,423 108,037 84,640 Other income (expense): Interest expense (10,160 ) (10,664 ) (9,374 ) (8,815 ) (39,013 ) Interest income 106 150 165 143 564 Other, net 649 (1,766 ) (1,059 ) (443 ) (2,619 ) Total other income (expense) (9,405 ) (12,280 ) (10,268 ) (9,115 ) (41,068 ) Income (loss) before income taxes (5,782 ) (50,723 ) 1,155 98,922 43,572 Income tax expense (benefit) (4,174 ) (20,914 ) (2,233 ) 65,758 38,437 Net income (loss) $ (1,608 ) $ (29,809 ) $ 3,388 $ 33,164 $ 5,135 Earnings (loss) per share Basic $ (0.01 ) $ (0.25 ) $ 0.03 $ 0.28 $ 0.04 Diluted $ (0.01 ) $ (0.25 ) $ 0.03 $ 0.28 $ 0.04 (1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. (2) General and administrative expenses in the second quarter includes the BHMI judgment as discussed in Note 14. Quarter Ended Year Ended March 31, June 30, September 30, December 31, December 31, (in thousands, except per share amounts) 2016 2016 2016 2016 2016 Revenues: Software as a service and platform as a service $ 111,736 $ 102,265 $ 96,169 $ 101,119 $ 411,289 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 Total revenues 226,066 219,930 216,975 342,730 1,005,701 Operating expenses: Cost of revenue (1) (2) 118,434 115,384 100,267 110,829 444,914 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 (loss) (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 revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. (2) The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting 2016-09”) 2016-09 |
Nature of Business and Summar39
Nature of Business and Summary of Significant Accounting Policies - Receivables and Concentration of Credit Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract] | ||||
Billed Receivables | $ 240,137 | $ 250,116 | ||
Allowance for doubtful accounts | (4,799) | (3,873) | $ (5,045) | $ (4,806) |
Billed, net | 235,338 | 246,243 | ||
Accrued Receivables | 27,507 | 21,919 | ||
Receivables, net | $ 262,845 | $ 268,162 |
Nature of Business and Summar40
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of receivables as of December 31, 2017, 2016 | No customer accounted for more than 10% of the Company's consolidated receivables balance as of December 31, 2017 or 2016. | ||
Amount of off balance sheet settlement funds | $ 238,900,000 | $ 270,000,000 | |
Goodwill measurement period | 1 year | ||
Goodwill | $ 909,691,000 | 909,691,000 | |
Goodwill impairment | $ 0 | ||
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 | ||
ACI On Premise [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Goodwill | $ 725,900,000 | ||
ACI On Demand [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Goodwill | 183,800,000 | ||
Adjustments for New Accounting Pronouncement [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative-effect adjustment to retained earnings, net of tax | $ 273,000,000 | ||
Scenario, Forecast [Member] | Adjustments for New Accounting Pronouncement [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative-effect adjustment to retained earnings, net of tax | $ 291,000,000 | ||
Software Acquired or Developed for Internal Use [Member] | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Software Acquired or Developed for Internal Use [Member] | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 10 years | ||
Level 2 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Fair value senior note | $ 305,700,000 | $ 309,800,000 |
Nature of Business and Summar41
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |||
Balance, beginning of period | $ (3,873) | $ (5,045) | $ (4,806) |
Provision increase | (2,086) | (1,595) | (2,425) |
Amounts written off, net of recoveries | 1,305 | 2,551 | 2,088 |
Foreign currency translation adjustments and other | (145) | 216 | 98 |
Balance, end of period | $ (4,799) | $ (3,873) | $ (5,045) |
Nature of Business and Summar42
Nature of Business and Summary of Significant Accounting Policies - Components of Other Current Assets and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Current Assets and Liabilities [Line Items] | ||
Other | $ 5,781 | $ 8,755 |
Total other current assets | 58,126 | 33,578 |
Settlement payables | 48,953 | 24,016 |
Accrued interest | 7,291 | 7,356 |
Vendor financed licenses | 1,862 | 9,213 |
Royalties payable | 9,264 | 7,197 |
Other | 35,534 | 31,059 |
Total other current liabilities | 102,904 | 78,841 |
Settlement deposits [Member] | ||
Other Current Assets and Liabilities [Line Items] | ||
Other assets settlement | 22,282 | 10,496 |
Settlement receivables [Member] | ||
Other Current Assets and Liabilities [Line Items] | ||
Other assets settlement | $ 30,063 | $ 14,327 |
Nature of Business and Summar43
Nature of Business and Summary of Significant Accounting Policies - Net Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 182,762 | $ 162,106 |
Less: accumulated depreciation and amortization | (102,534) | (83,156) |
Property and equipment, net | 80,228 | 78,950 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 123,804 | 105,692 |
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 | $ 32,364 | 33,093 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant & equipment useful lives | 7 years | |
Property and equipment, gross | $ 12,158 | 11,145 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 12,651 | 10,391 |
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 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Nov. 04, 2015 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of ownership interest acquired | 100.00% | 100.00% | 100.00% | |||||||||||||||
Additional borrowing | $ 67,000 | $ 76,000 | $ 298,000 | |||||||||||||||
Operating income (loss) | $ 108,037 | $ 11,423 | $ (38,443) | $ 3,623 | $ 120,343 | $ (9,353) | $ (26,572) | $ 136,712 | $ 84,640 | $ 221,130 | [1] | $ 127,948 | ||||||
Restricted Share Awards (RSAs) [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Issuance of ACI common stock | 560,174 | 148,322 | 125,026 | |||||||||||||||
Awards granted requisite service period | 3 years | 3 years | 3 years | |||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Additional borrowing | $ 181,000 | |||||||||||||||||
PAY.ON [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Total purchase price | $ 186,100 | $ 186,141 | ||||||||||||||||
Acquisition related transaction expenses | $ 900 | |||||||||||||||||
Revenue | $ 16,500 | 2,900 | ||||||||||||||||
Operating income (loss) | $ 17,100 | $ 2,100 | ||||||||||||||||
PAY.ON [Member] | 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 [Member] | 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% | |||||||||||||||||
[1] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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 [Member] - USD ($) $ in Thousands | Nov. 04, 2015 | Dec. 31, 2017 |
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 | $ 186,100 | $ 186,141 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation of PAY.ON (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 909,691 | $ 909,691 |
PAY.ON [Member] | ||
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 [Member] | PAY.ON [Member] | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets, weighted-average useful lives | 5 years | |
Amortizable intangible assets | $ 34,150 | |
Customer Relationships [Member] | PAY.ON [Member] | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets, weighted-average useful lives | 15 years | |
Amortizable intangible assets | $ 21,718 | |
Trademarks | PAY.ON [Member] | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets, weighted-average useful lives | 5 years | |
Amortizable intangible assets | $ 2,300 |
Divestiture - Additional inform
Divestiture - Additional information (Detail) - Community Financial Services Products [Member] - Disposal Group, Not Discontinued Operations [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Mar. 03, 2016 | |
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 | |
Adjustment to Gain Loss on Sale of Assets [Member] | ||
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 Intangible48
Software and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | $ 155,386 | $ 185,496 | |
Software, accumulated amortization | 230,700 | 195,000 | |
Other intangible assets amortization expense | $ 19,400 | 21,200 | $ 23,000 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 20 years | ||
Software Marketed for External Sale [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | $ 40,900 | 52,300 | |
Software, amortization expense | $ 12,800 | 13,900 | 14,500 |
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 [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | $ 114,500 | 133,200 | |
Software, amortization expense | $ 45,200 | $ 45,700 | $ 38,300 |
Software Acquired or Developed for Internal Use [Member] | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Software Acquired or Developed for Internal Use [Member] | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 10 years |
Software and Other Intangible49
Software and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 321,864 | $ 311,749 |
Accumulated Amortization | (130,583) | (108,115) |
Net Balance | 191,281 | 203,634 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 305,218 | 295,730 |
Accumulated Amortization | (116,677) | (96,356) |
Net Balance | 188,541 | 199,374 |
Trademarks and Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,646 | 16,019 |
Accumulated Amortization | (13,906) | (11,759) |
Net Balance | $ 2,740 | $ 4,260 |
Software and Other Intangible50
Software and Other Intangible Assets - Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Balance | $ 191,281 | $ 203,634 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,018 | 49,012 | |
2,019 | 40,471 | |
2,020 | 31,550 | |
2,021 | 19,734 | |
2,022 | 8,383 | |
Thereafter | 6,236 | |
Net Balance | 155,386 | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,018 | 19,145 | |
2,019 | 18,587 | |
2,020 | 17,688 | |
2,021 | 17,176 | |
2,022 | 17,015 | |
Thereafter | 101,670 | |
Net Balance | $ 191,281 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Jun. 27, 2017 | Feb. 24, 2017 | Aug. 20, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 15, 2017 | Oct. 26, 2016 | Feb. 29, 2016 |
Debt Instrument [Line Items] | ||||||||||
Proceeds from revolving credit facility | $ 67,000,000 | $ 76,000,000 | $ 298,000,000 | |||||||
Proceeds from term portion of credit agreement | $ 415,000,000 | |||||||||
Credit facility, interest rate description | The applicable margin for borrowings under the Credit Facility is, based on the calculation of the applicable consolidated total leverage ratio, between 0.25% to 1.25% with respect to base rate borrowings and between 1.25% and 2.25% with respect to LIBOR rate borrowings. Interest is due and payable monthly. The interest rate in effect at December 31, 2017 for the Credit Facility was 3.07%. | |||||||||
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 | 3.07% | 3.07% | ||||||||
Credit Facility maturity date | Feb. 24, 2022 | |||||||||
Description of credit agreement amendment terms | The amendment revised the definition of "Consolidated EBITDA" to exclude the expense from the BHMI judgment and related fees, expenses, and interest thereto, up to $50.0 million from the calculation in the period recorded. | The amendment revised the definition of "Consolidated EBITDA" to exclude the expense from the BHMI judgment and related fees, expenses, and interest thereto, up to $50.0 million from the calculation in the period recorded. | ||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
BHMI judgment and related fees, expenses, and interest excluded from Consolidated EBITDA definition | $ 50,000,000 | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility amount outstanding | $ 2,000,000 | $ 2,000,000 | ||||||||
Unused borrowings | 498,000,000 | 498,000,000 | ||||||||
Proceeds from revolving credit facility | 181,000,000 | |||||||||
Term Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility amount outstanding | 394,300,000 | 394,300,000 | ||||||||
Letters of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facilities, maximum borrowing capacity | $ 5,000,000 | $ 7,500,000 | $ 25,000,000 | |||||||
Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes amount outstanding | 300,000,000 | $ 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 | ||||||||
Credit Agreement [Member] | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility, interest rate margin above base rate | 0.25% | |||||||||
Credit facility, interest rate margin above LIBOR rate | 1.25% | |||||||||
Credit Agreement [Member] | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility, interest rate margin above base rate | 1.25% | |||||||||
Credit facility, interest rate margin above LIBOR rate | 2.25% | |||||||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facilities, maximum borrowing capacity | $ 500,000,000 | |||||||||
Credit facilities, maturity | 5 years | |||||||||
Proceeds from revolving credit facility | $ 12,000,000 | |||||||||
Credit Agreement [Member] | Term Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facilities, maximum borrowing capacity | $ 415,000,000 | |||||||||
Credit facilities, maturity | 5 years | |||||||||
Proceeds from term portion of credit agreement | $ 415,000,000 | |||||||||
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 | 1,900,000 | $ 1,900,000 | 9,000,000 | |||||||
Other current liabilities | 1,500,000 | 1,500,000 | 7,300,000 | |||||||
Other noncurrent liabilities | $ 400,000 | $ 400,000 | $ 1,700,000 | |||||||
Parent Company and Domestic Subsidiaries [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of capital stock pledged as collateral | 100.00% | 100.00% | ||||||||
Foreign Subsidiaries [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of capital stock pledged as collateral | 65.00% | 65.00% |
Debt - Maturities on Long-Term
Debt - Maturities on Long-Term Debt Outstanding (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 20,750 |
2,019 | 31,125 |
2,020 | 331,125 |
2,021 | 41,500 |
2,022 | 271,750 |
Total | $ 696,250 |
Debt - Carrying Value of Debt (
Debt - Carrying Value of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (10,521) | $ (9,372) |
Total debt | 685,729 | 743,918 |
Current portion of long-term debt | 17,786 | 90,323 |
Less current portion of debt issuance costs | (2,964) | (4,970) |
Total long-term debt | 667,943 | 653,595 |
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 | 394,250 | 365,290 |
Current portion of long-term debt | 20,750 | 95,293 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 2,000 | $ 88,000 |
Debt - Carrying Value of Debt54
Debt - Carrying Value of Debt (Parenthetical) (Detail) - 6.375% Senior Notes, due August 2020 [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Debt Instrument [Line Items] | |
Percentage of interest rate on notes | 6.375% |
Maturity date of senior notes | Aug. 15, 2020 |
Corporate Restructuring and O55
Corporate Restructuring and Other Organizational Changes - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)Position | |
Restructuring Cost and Reserve [Line Items] | |||
Employee termination costs paid during the period | $ 800 | ||
Employee termination costs | $ 1,300 | ||
Number of positions eliminated | Position | 30 | ||
Amounts paid during the period | $ 1,285 | 1,432 | |
Restructuring charges | 5,945 | 4,559 | $ 1,045 |
Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance liability to be paid over the next 12 months | 0 | 0 | 800 |
Amounts paid during the period | 778 | 2,900 | |
Restructuring charges | 777 | ||
Facility Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Amounts paid during the period | 1,285 | 654 | |
Restructuring charges | 5,945 | 4,559 | $ 268 |
Facility Closures [Member] | Other Current Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1,800 | ||
Facility Closures [Member] | Other Noncurrent Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4,100 | ||
General and Administrative Expense [Member] | Lleased Facilities in Edison, NJ; Chantilly, VA; Charlotte, SC; Parsippany, PA; and Waltham, MA [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease termination fee | $ 2,400 | ||
General and Administrative Expense [Member] | Leased Facilities in Watford, UK; Providence, RI; Chantilly, VA; and West Hills, CA [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease termination fee | $ 5,000 |
Corporate Restructuring and O56
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | $ 4,559 | $ 1,045 | |
Restructuring charges (adjustments) incurred, net | 2,447 | 5,041 | |
Amounts paid during the period | (1,285) | (1,432) | |
Foreign currency translation adjustments | 224 | (95) | |
Ending balance | 5,945 | 4,559 | $ 1,045 |
Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 777 | ||
Amounts paid during the period | (778) | (2,900) | |
Foreign currency translation adjustments | 1 | ||
Ending balance | 777 | ||
Facility Closures [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 4,559 | 268 | |
Restructuring charges (adjustments) incurred, net | 2,447 | 5,041 | |
Amounts paid during the period | (1,285) | (654) | |
Foreign currency translation adjustments | 224 | (96) | |
Ending balance | $ 5,945 | $ 4,559 | $ 268 |
Common Stock and Treasury Sto57
Common Stock and Treasury Stock - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Feb. 19, 2018 | Feb. 28, 2014 | Jul. 31, 2013 | Sep. 13, 2012 | Sep. 12, 2012 |
Maximum stock authorized to purchase under stock repurchase program | $ 200,000,000 | $ 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 | 1,346,427 | 1,653,573 | 3,020,926 | 41,782,966 | ||||||
Repurchase of common stock, value | $ 31,100,000 | $ 37,387,000 | $ 60,089,000 | $ 493,300,000 | ||||||
Number shares issued pursuant to stock option exercises | 1,204,559 | 792,841 | 1,144,273 | |||||||
Long-term incentive program performance share awards | ||||||||||
Stock issued during the period performance share award | 470,029 | 548,671 | ||||||||
Restricted Share Awards (RSAs) [Member] | ||||||||||
Stock issued during period, performance based restricted share awards | 560,174 | 148,322 | 125,026 | |||||||
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 | 1,204,559 | 797,140 | 1,146,199 | |||||||
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 | $ 9,700,000 | $ 40,800,000 | $ 40,800,000 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted average shares outstanding: | |||
Basic weighted average shares outstanding | 118,059 | 117,533 | 117,465 |
Add: Dilutive effect of stock options | 1,385 | 1,314 | 1,454 |
Diluted weighted average shares outstanding | 119,444 | 118,847 | 118,919 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Options to purchase shares, contingently issuable shares, and common stock warrants excluded from diluted earnings (loss) per share computation | 3,900,000 | 6,100,000 | 3,700,000 |
Common stock outstanding | 117,096,731 | 117,336,797 |
Other, net (Detail)
Other, net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||||||||||
Foreign currency transaction gains (losses) | $ (2,619) | $ 4,105 | $ 1,946 | ||||||||
Realized gain on available-for-sale securities | 24,465 | ||||||||||
Total | $ (443) | $ (1,059) | $ (1,766) | $ 649 | $ (378) | $ 2,794 | $ 2,023 | $ (334) | $ (2,619) | $ 4,105 | $ 26,411 |
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 | ||
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 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($)Segment | ||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | $ 326,395 | $ 225,735 | $ 240,599 | $ 231,462 | $ 342,730 | $ 216,975 | $ 219,930 | $ 226,066 | $ 1,024,191 | $ 1,005,701 | $ 1,045,977 | |||||
Operating income | $ 108,037 | $ 11,423 | $ (38,443) | 3,623 | $ 120,343 | [1] | $ (9,353) | [1] | $ (26,572) | [1] | $ 136,712 | [1] | 84,640 | $ 221,130 | [1] | $ 127,948 |
BHMI judgment and related fees and interest expense | $ 2,700 | $ 48,100 | ||||||||||||||
Number of geographic regions | Segment | 2 | 3 | 3 | |||||||||||||
BASE24 | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Percentage of total revenues from licensing BASE24 product line | 19.00% | 22.00% | 21.00% | |||||||||||||
Digital Channels [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | $ 94,036 | $ 124,630 | $ 219,698 | |||||||||||||
General and Administrative Expense [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
BHMI judgment and related fees and interest expense | $ 46,700 | |||||||||||||||
Community Financial Services Products [Member] | Digital Channels [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 15,300 | $ 94,500 | ||||||||||||||
Geographic Concentration Risk | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Percentage of revenues during the years ended December 31, 2017, 2016, and 2015 | No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the years ended December 31, 2017, 2016, and 2015. | |||||||||||||||
Customer Concentration Risk [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Percentage of revenues during the years ended December 31, 2017, 2016, and 2015 | No single customer accounted for more than 10% of the Company's consolidated revenues during the years ended December 31, 2017, 2016, and 2015. | |||||||||||||||
Corporate and Other [Member] | Community Financial Services Products [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 15,400 | |||||||||||||||
Operating income | $ 151,700 | |||||||||||||||
[1] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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. |
Selected Segment Financial Data
Selected Segment Financial Data, Revenues and Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | $ 326,395 | $ 225,735 | $ 240,599 | $ 231,462 | $ 342,730 | $ 216,975 | $ 219,930 | $ 226,066 | $ 1,024,191 | $ 1,005,701 | $ 1,045,977 | |||||
Depreciation and amortization expense | 102,224 | 103,454 | ||||||||||||||
Stock-based compensation expense | 13,683 | 43,613 | 18,380 | |||||||||||||
Operating income (loss) | $ 108,037 | $ 11,423 | $ (38,443) | $ 3,623 | $ 120,343 | [1] | $ (9,353) | [1] | $ (26,572) | [1] | $ 136,712 | [1] | 84,640 | 221,130 | [1] | 127,948 |
Operating Segments [Member] | ACI On Premise [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 598,590 | 591,252 | 589,006 | |||||||||||||
Depreciation and amortization expense | 13,094 | 14,581 | ||||||||||||||
Stock-based compensation expense | 2,234 | 6,894 | ||||||||||||||
Operating income (loss) | 331,766 | 290,713 | ||||||||||||||
Operating Segments [Member] | ACI On Demand [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 425,601 | 399,033 | 362,368 | |||||||||||||
Depreciation and amortization expense | 34,171 | 29,385 | ||||||||||||||
Stock-based compensation expense | 2,230 | 6,876 | ||||||||||||||
Operating income (loss) | (38,233) | (38,885) | ||||||||||||||
Corporate and Other [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 15,416 | $ 94,603 | ||||||||||||||
Depreciation and amortization expense | 54,959 | 59,488 | ||||||||||||||
Stock-based compensation expense | 9,219 | 29,843 | ||||||||||||||
Operating income (loss) | $ (208,893) | $ (30,698) | ||||||||||||||
[1] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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. |
Revenue under New Operating Seg
Revenue under New Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenues | $ 326,395 | $ 225,735 | $ 240,599 | $ 231,462 | $ 342,730 | $ 216,975 | $ 219,930 | $ 226,066 | $ 1,024,191 | $ 1,005,701 | $ 1,045,977 |
Operating Segments [Member] | ACI On Premise [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenues | 598,590 | 591,252 | 589,006 | ||||||||
Operating Segments [Member] | ACI On Demand [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenues | $ 425,601 | 399,033 | 362,368 | ||||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenues | $ 15,416 | $ 94,603 |
Selected Segment Financial Da65
Selected Segment Financial Data, Revenues and Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | $ 326,395 | $ 225,735 | $ 240,599 | $ 231,462 | $ 342,730 | $ 216,975 | $ 219,930 | $ 226,066 | $ 1,024,191 | $ 1,005,701 | $ 1,045,977 | |||||
Depreciation and amortization expense | 102,224 | 103,454 | ||||||||||||||
Stock-based compensation expense | 13,683 | 43,613 | 18,380 | |||||||||||||
Income (loss) before income taxes | $ 98,922 | $ 1,155 | $ (50,723) | $ (5,782) | $ 109,862 | [1] | $ (16,252) | [1] | $ (34,143) | [1] | $ 126,114 | [1] | 43,572 | 185,581 | [1] | 113,373 |
United States [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 541,235 | 527,431 | 628,013 | |||||||||||||
Other [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 482,956 | 478,270 | 417,964 | |||||||||||||
Corporate and Other [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 15,416 | 94,603 | ||||||||||||||
Depreciation and amortization expense | 54,959 | 59,488 | ||||||||||||||
Stock-based compensation expense | $ 9,219 | 29,843 | ||||||||||||||
Scenario Previously Reported | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 1,005,701 | 1,045,977 | ||||||||||||||
Depreciation and amortization expense | 103,454 | 97,431 | ||||||||||||||
Stock-based compensation expense | 43,613 | 18,380 | ||||||||||||||
Income (loss) before income taxes | 185,581 | 113,373 | ||||||||||||||
Scenario Previously Reported | Operating Segments [Member] | Americas Segment [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Depreciation and amortization expense | 27,951 | 24,966 | ||||||||||||||
Stock-based compensation expense | 5,005 | 1,638 | ||||||||||||||
Income (loss) before income taxes | 206,689 | 111,382 | ||||||||||||||
Scenario Previously Reported | Operating Segments [Member] | Americas Segment [Member] | United States [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 527,431 | 628,013 | ||||||||||||||
Scenario Previously Reported | Operating Segments [Member] | Americas Segment [Member] | Other [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 116,718 | 82,548 | ||||||||||||||
Scenario Previously Reported | Operating Segments [Member] | EMEA Segment [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 261,160 | 250,568 | ||||||||||||||
Depreciation and amortization expense | 3,830 | 3,670 | ||||||||||||||
Stock-based compensation expense | 6,476 | 1,223 | ||||||||||||||
Income (loss) before income taxes | 176,958 | 132,518 | ||||||||||||||
Scenario Previously Reported | Operating Segments [Member] | Asia/Pacific Segment [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 100,392 | 84,848 | ||||||||||||||
Depreciation and amortization expense | 1,820 | 1,751 | ||||||||||||||
Stock-based compensation expense | 605 | 36 | ||||||||||||||
Income (loss) before income taxes | 62,422 | 41,658 | ||||||||||||||
Scenario Previously Reported | Corporate and Other [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Depreciation and amortization expense | 69,853 | 67,044 | ||||||||||||||
Stock-based compensation expense | 31,527 | 15,483 | ||||||||||||||
Income (loss) before income taxes | $ (260,488) | $ (172,185) | ||||||||||||||
[1] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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. |
Selected Segment Financial Da66
Selected Segment Financial Data, Revenues and Long lived Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||||||||||
Revenues | $ 326,395 | $ 225,735 | $ 240,599 | $ 231,462 | $ 342,730 | $ 216,975 | $ 219,930 | $ 226,066 | $ 1,024,191 | $ 1,005,701 | $ 1,045,977 |
Long lived assets | |||||||||||
Long lived assets | 1,373,069 | 1,416,825 | 1,373,069 | 1,416,825 | |||||||
United States [Member] | |||||||||||
Revenues | |||||||||||
Revenues | 541,235 | 527,431 | 628,013 | ||||||||
Long lived assets | |||||||||||
Long lived assets | 759,513 | 752,442 | 759,513 | 752,442 | |||||||
Other [Member] | |||||||||||
Revenues | |||||||||||
Revenues | 482,956 | 478,270 | $ 417,964 | ||||||||
Long lived assets | |||||||||||
Long lived assets | $ 613,556 | $ 664,383 | $ 613,556 | $ 664,383 |
Segment Information - Revenues,
Segment Information - Revenues, by Product Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 326,395 | $ 225,735 | $ 240,599 | $ 231,462 | $ 342,730 | $ 216,975 | $ 219,930 | $ 226,066 | $ 1,024,191 | $ 1,005,701 | $ 1,045,977 |
Retail Payments [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 428,583 | 422,262 | 416,998 | ||||||||
Bill Payments [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 271,421 | 255,540 | 241,949 | ||||||||
Digital Channels [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 94,036 | 124,630 | 219,698 | ||||||||
Payments Risk Management [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 80,326 | 67,649 | 66,386 | ||||||||
Merchant Payments [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 76,953 | 64,626 | 49,064 | ||||||||
Real Time Payments [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 72,872 | $ 70,994 | $ 51,882 |
Stock-Based Compensation Plan68
Stock-Based Compensation Plans - Additional Information (Detail) | Sep. 15, 2015 | Dec. 31, 2017USD ($)shares | Mar. 31, 2017 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017USD ($)Employee$ / sharesshares | Dec. 31, 2016USD ($)Tranche$ / sharesshares | Dec. 31, 2015USD ($)Tranche$ / sharesshares | Jun. 14, 2012shares | Jul. 24, 2007shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares issued under ESPP | 158,194 | 188,453 | 162,058 | |||||||
Stock-based compensation expense | $ | $ 13,683,000 | $ 43,613,000 | $ 18,380,000 | |||||||
Shares of common stock reserved for issuance prior to amendment | 9,000,000 | 9,000,000 | ||||||||
Incentive plan, weighted-average grant date fair value of stock options granted | $ / shares | $ 6.24 | $ 5.59 | $ 6.49 | |||||||
Incentive plan, total intrinsic value of stock options exercised | $ | $ 13,400,000 | $ 6,800,000 | $ 12,400,000 | |||||||
Expected dividend yield | 0.00% | |||||||||
Dividend paid | $ / shares | $ 0 | |||||||||
Number of tranches | Tranche | 3 | 3 | ||||||||
Stock-based compensation expenses tax benefits | $ | $ 1,700,000 | $ 14,300,000 | $ 6,900,000 | |||||||
Employee Stock Purchase Plan 2017 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized | 3,000,000 | 3,000,000 | ||||||||
Permitted designation for purchase of common stock under ESPP | Participating employees are permitted to designate up to the lesser of $25,000 or 10% of their annual base compensation, for the purchase of common stock under the ESPP. Purchases under the ESPP are made one calendar month after the end of each fiscal quarter. | |||||||||
Employee participating annual base compensation designated for purchase of common stock, amount | $ | $ 25,000 | $ 25,000 | ||||||||
Employee participating annual base compensation designated for purchase of common stock, percent | 10.00% | 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 | $ | $ 8,200,000 | $ 8,200,000 | ||||||||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 6 months | |||||||||
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 days | ||||||||
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 days | ||||||||
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 days | ||||||||
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 | |||||||||
Total stock based compensation awards, shares vested | 120,869 | 114,219 | 158,973 | |||||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 3,311 | 9,062 | 25,235 | |||||||
Unrecognized compensation costs | $ | 6,900,000 | $ 6,900,000 | ||||||||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 10 months 25 days | |||||||||
Performance-Based Restricted Share Awards [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 1 year 3 months 19 days | 3 years | ||||||||
Total stock based compensation awards, shares vested | 484,835 | 169,567 | ||||||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 178,351 | 59,659 | ||||||||
Threshold level percentage for share awards | 150.00% | |||||||||
Award grants assuming percentage | 100.00% | |||||||||
Unrecognized compensation costs | $ | $ 600,000 | $ 600,000 | ||||||||
Unrecognized compensation costs, weighted-average recognition periods | 4 months 24 days | |||||||||
Performance-Based Restricted Share Awards [Member] | Tranche One [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage for each year | 90.40% | 33.00% | ||||||||
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 Two [Member] | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 98.00% | |||||||||
Performance-Based Restricted Share Awards [Member] | Tranche Two [Member] | Maximum | ||||||||||
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] | Tranche Three [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] | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 98.00% | |||||||||
Performance-Based Restricted Share Awards [Member] | Tranche Three [Member] | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 100.00% | |||||||||
Retention RSAs [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Total stock based compensation awards, shares vested | 205,540 | 226,526 | ||||||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 75,198 | 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 19 days | |||||||||
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] | Tranche One [Member] | Executive Officers [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage for each year | 50.00% | |||||||||
Retention RSAs [Member] | Tranche One [Member] | Employees other than Named Executive Officers [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage for each year | 50.00% | |||||||||
Retention RSAs [Member] | Tranche Two [Member] | Executive Officers [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage for each year | 50.00% | |||||||||
Retention RSAs [Member] | Tranche Two [Member] | Employees other than Named Executive Officers [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% | |||||||||
Total stock based compensation awards, shares vested | 119,188 | 238,374 | ||||||||
Number of employees to whom awards issued | Employee | 2 | |||||||||
2011 Grant [Member] | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 91.00% | |||||||||
2011 Grant [Member] | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 100.00% | |||||||||
2013 Grant [Member] | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 0.00% | |||||||||
2013 Grant [Member] | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 75.00% | |||||||||
2015 Grant [Member] | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 0.00% | |||||||||
2015 Grant [Member] | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 100.00% | |||||||||
2016 Grant [Member] | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 65.00% | |||||||||
2016 Grant [Member] | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 100.00% | |||||||||
2017 Grant [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 100.00% | |||||||||
2016 Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized | 8,000,000 | 8,000,000 | ||||||||
2016 Incentive Plan [Member] | Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units and Other Awards [Member] | ||||||||||
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 [Member] | Performance Shares or Performance Units [Member] | ||||||||||
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 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized | 23,250,000 | 15,000,000 | ||||||||
Employee stock purchase plan term | 10 years | |||||||||
2005 Stock Incentive Plan [Member] | 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 [Member] | 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 [Member] | 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% | ||||||
Total stock based compensation awards, shares vested | 548,671 | |||||||||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 196,169 | |||||||||
Unrecognized compensation costs | $ | $ 11,600,000 | $ 11,600,000 | ||||||||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 10 months 25 days | |||||||||
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 | |||||||
Total Shareholder Return [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% | ||||||||
Stock based compensation awards, award payout range, minimum | 0.00% | |||||||||
Unrecognized compensation costs | $ | $ 2,500,000 | $ 2,500,000 | ||||||||
Unrecognized compensation costs, weighted-average recognition periods | 2 years 1 month 6 days | |||||||||
Total Shareholder Return [Member] | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 64.00% | |||||||||
Total Shareholder Return [Member] | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected attainment level for the awards granted, percentage | 100.00% |
Stock-Based Compensation Plan69
Stock-Based Compensation Plans - Summary of Stock Options Issued Pursuant to Stock Incentive Plans (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | |||
Outstanding, Beginning Balance | 6,791,375 | 5,799,076 | 5,282,693 |
Granted | 864,800 | 2,284,500 | 2,055,514 |
Exercised | (1,204,559) | (792,841) | (1,144,273) |
Forfeited | (268,417) | (446,845) | (394,265) |
Expired | (20,482) | (52,515) | (593) |
Outstanding, Ending Balance | 6,162,717 | 6,791,375 | 5,799,076 |
Number of Shares Exercisable, Ending Balance | 3,486,892 | ||
Weighted-Average Exercise Price | |||
Beginning Balance | $ 15.54 | $ 14.37 | $ 12.06 |
Granted | 20.12 | 17.92 | 19.12 |
Exercised | 11.52 | 11.69 | 10.62 |
Forfeited | 18.43 | 18.69 | 19.06 |
Expired | 20.11 | 20.44 | 20.51 |
Ending Balance | 16.83 | $ 15.54 | $ 14.37 |
Weighted-Average Exercise Price Exercisable, Ending Balance | $ 15.28 | ||
Weighted-Average Remaining Contractual Term (Years) | |||
Weighted Average Remaining Contractual Term (Years), Outstanding as of end of period | 6 years 8 months 9 days | ||
Weighted-Average Remaining Contractual Term (Years), Exercisable as of end of period | 5 years 6 months 7 days | ||
Aggregate Intrinsic Value of In-the-Money Options | |||
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period | $ 35,976,295 | ||
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period | $ 25,770,089 |
Stock-Based Compensation Plan70
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 7 months 6 days | 5 years 10 months 25 days | 5 years 10 months 25 days |
Risk-free interest rate | 1.90% | 1.20% | 1.40% |
Expected volatility | 29.40% | 29.70% | 32.10% |
Expected dividend yield | 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 Plan71
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares at Expected Attainment | |||
Beginning Balance | 1,738,056 | 889,295 | 1,145,916 |
Granted | 553,549 | 1,059,428 | 1,025,863 |
Vested | (548,671) | ||
Forfeited | (201,441) | (210,667) | (205,510) |
Change in expected attainment for 2011 and 2013 grants | (965,129) | (528,303) | |
Ending Balance | 1,125,035 | 1,738,056 | 889,295 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 18.45 | $ 19.13 | $ 14.84 |
Granted | 20.12 | 17.92 | 19.12 |
Vested | 9.75 | ||
Forfeited | 18.87 | 18.61 | 19.39 |
Change in expected attainment for 2011 and 2013 grants | 18.75 | 19.44 | |
Ending Balance | $ 18.94 | $ 18.45 | $ 19.13 |
Stock-Based Compensation Plan72
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Nonvested Restricted Share Awards | |||
Beginning Balance | 172,108 | 149,262 | 183,209 |
Granted | 560,174 | 148,322 | 125,026 |
Vested | (120,869) | (114,219) | (158,973) |
Forfeited | (108,176) | (11,257) | |
Ending Balance | 503,237 | 172,108 | 149,262 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 20.62 | $ 22.62 | $ 17.11 |
Granted | 20.61 | 20.19 | 23.82 |
Vested | 20.72 | 22.64 | 17.21 |
Forfeited | 20.39 | 21.01 | |
Ending Balance | $ 20.63 | $ 20.62 | $ 22.62 |
Stock-Based Compensation Plan73
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Nonvested Restricted Share Awards | |||
Beginning Balance | 683,667 | 938,863 | 0 |
Granted | 978,365 | ||
Forfeited | (11,604) | (67,397) | (39,502) |
Vested | (484,835) | (169,567) | |
Change in attainment for 2015 grants | (13,592) | (18,232) | |
Ending Balance | 173,636 | 683,667 | 938,863 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 23.25 | $ 23.42 | |
Granted | $ 23.45 | ||
Forfeited | 23.84 | 22.34 | 24.24 |
Vested | 22.82 | 24.41 | |
Change in attainment for 2015 grants | 23.25 | 24.41 | |
Ending Balance | $ 24.41 | $ 23.25 | $ 23.42 |
Stock-Based Compensation Plan74
Stock-Based Compensation Plans - Summary of Nonvested Retention Restricted Share Awards and Changes During Period (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retention RSAs [Member] | |||
Nonvested Restricted Share Awards | |||
Beginning Balance | 205,540 | 0 | |
Granted | 473,069 | ||
Vested | (205,540) | (226,526) | |
Forfeited | (41,003) | ||
Ending Balance | 0 | 205,540 | 0 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 17.89 | ||
Granted | $ 17.89 | ||
Vested | 17.89 | ||
Forfeited | $ 17.89 | 17.89 | |
Ending Balance | $ 17.89 | ||
PAY.ON RSAs [Member] | |||
Nonvested Restricted Share Awards | |||
Beginning Balance | 238,376 | 476,750 | 0 |
Granted | 476,750 | ||
Vested | (119,188) | (238,374) | |
Forfeited | (119,188) | ||
Ending Balance | 0 | 238,376 | 476,750 |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 23.60 | $ 23.60 | |
Granted | $ 23.60 | ||
Vested | 23.60 | 23.60 | |
Forfeited | 23.60 | ||
Ending Balance | $ 0 | $ 23.60 | $ 23.60 |
Stock-Based Compensation Plan75
Stock-Based Compensation Plans - Estimated Fair Value of Options Granted Total Shareholder Return (TSRs) using Monte Carlo Simulation Model with Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend Yield | 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 | |
Interest rate | 1.60% | 1.70% | |
Volatility | 41.60% | 41.90% | |
Dividend Yield | 0.00% | 0.00% | |
Total Shareholder Return [Member] | Monte Carlo Simulation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 2 years 10 months 25 days | ||
Interest rate | 1.50% | ||
Volatility | 26.50% | ||
Dividend Yield | 0.00% |
Stock-Based Compensation Plan76
Stock-Based Compensation Plans - Summary of Nonvested Total Shareholder Return (TSRs) Outstanding and Changes During Period (Detail) - Total Shareholder Return [Member] | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of Shares at Expected Attainment | |
Beginning Balance | shares | 0 |
Granted | shares | 233,077 |
Forfeited | shares | (8,624) |
Change in Attainment in 2017 | shares | (80,804) |
Ending Balance | shares | 143,649 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 0 |
Granted | $ / shares | 24.37 |
Forfeited | $ / shares | 24.37 |
Change in Attainment in 2017 | $ / shares | 24.37 |
Ending Balance | $ / shares | $ 24.37 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employees maximum 401(k) contribution, percentage | 75.00% | ||
Defined contribution plan, contribution | $ 5,300,000 | $ 5,500,000 | $ 6,100,000 |
Employer 401(k) matching contribution to employee, maximum amount | $ 4,000 | ||
Defined contribution plan, employer matching percentage on every deferred dollar | 100.00% | ||
EMEA [Member] | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, contribution | $ 1,600,000 | $ 1,700,000 | $ 1,800,000 |
Maximum | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Employer 401(k) matching contribution to employee percentage | 4.00% | ||
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 | Minimum | EMEA [Member] | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer contribution percentage of eligible compensation | 6.00% | ||
Employed subsequent to December 1, 2000 | Maximum | EMEA [Member] | |||
Schedule Of Defined Contribution Plans Disclosures [Line Items] | |||
Defined contribution plan, employer contribution percentage of eligible compensation | 10.00% | ||
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 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||||
Effective Income Tax Rate | 35.00% | ||||
Tax Cuts and Jobs Act of 2017, Accounting Complete | false | ||||
Tax cuts and jobs act of 2017 remeasurement of deferred tax assets and liabilities provisional income tax expenses benefit | $ 15,000,000 | ||||
Tax Cuts and Jobs Act of 2017, one-time transition tax on certain unremitted foreign earnings | 20,900,000 | ||||
Decrease in deferred tax assets valuation allowance | 1,900,000 | ||||
Deferred tax assets tax credit carry forwards alternative minimum tax | 3,100,000 | ||||
Unrecognized tax benefit | 27,237,000 | $ 24,278,000 | $ 21,079,000 | $ 14,780,000 | |
Net unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate | 25,900,000 | 23,200,000 | |||
Decrease in unrecognized tax benefits due to the expiration of statutes of limitations and the settlement of various audits | 100,000 | ||||
Accrued interest and penalties related to income tax liabilities | 1,200,000 | 1,900,000 | |||
Aggregate amount of interest and penalties expenses (benefit) recorded in the statement of operations | (800,000) | (200,000) | $ (100,000) | ||
Undistributed earning of foreign subsidiaries | 355,000,000 | ||||
Other Noncurrent Liabilities | |||||
Income Taxes [Line Items] | |||||
Unrecognized tax benefit | 21,500,000 | $ 17,600,000 | |||
Scenario, Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate | 21.00% | ||||
Foreign Entities | |||||
Income Taxes [Line Items] | |||||
Deferred tax assets operating loss carry forwards subject to expiration | 39,800,000 | ||||
Deferred tax assets operating loss carry forwards | $ 6,200,000 | ||||
Deferred tax assets operating loss carry forwards, expiration period | 9 years | ||||
Valuation allowance against the tax benefit associated with NOLs | $ 39,100,000 | ||||
Deferred tax assets operating loss carry forwards subject to expiration | 26,100,000 | ||||
Valuation allowance against tax credit | $ 0 | ||||
Tax credits expiration year | 2,022 | ||||
Foreign Entities | Earliest Tax Year [Member] | |||||
Income Taxes [Line Items] | |||||
Tax years open for audit | 2,005 | ||||
Foreign Entities | Latest Tax Year [Member] | |||||
Income Taxes [Line Items] | |||||
Tax years open for audit | 2,016 | ||||
Other Foreign Jurisdiction [Member] | |||||
Income Taxes [Line Items] | |||||
Deferred tax assets operating loss carry forwards, expiration period | 7 years | ||||
Deferred tax assets operating loss carry forwards subject to expiration | $ 1,900,000 | ||||
Valuation allowance against tax credit | 1,600,000 | ||||
Valuation allowance against the tax benefit associated with NOLs | 1,600,000 | ||||
Domestic Federal | |||||
Income Taxes [Line Items] | |||||
Deferred tax assets operating loss carry forwards subject to expiration | $ 104,600,000 | ||||
Deferred tax assets operating loss carry forwards expiration year | 2,018 | ||||
Valuation allowance against the tax benefit associated with NOLs | $ 4,700,000 | ||||
Tax credits expiration year | 2,019 | ||||
General business tax credit carryforwards | $ 11,000,000 | ||||
State and Local Jurisdiction | |||||
Income Taxes [Line Items] | |||||
Deferred tax assets operating loss carry forwards subject to expiration | $ 6,200,000 | ||||
Deferred tax assets operating loss carry forwards expiration year | 2,018 | ||||
Valuation allowance against the tax benefit associated with NOLs | $ 1,000,000 | ||||
Tax credits expiration year | 2,022 | ||||
General business tax credit carryforwards | $ 700,000 | ||||
India Tax Authority | |||||
Income Taxes [Line Items] | |||||
Income tax examination description | The Company's Indian income tax returns covering fiscal years 2005 and 2010 through 2014 are under audit by the Indian tax authority. |
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Tax Disclosure [Abstract] | ||||||||||||||||
United States | $ (42,863) | $ 134,740 | $ 52,563 | |||||||||||||
Foreign | 86,435 | 50,841 | 60,810 | |||||||||||||
Income before income taxes | $ 98,922 | $ 1,155 | $ (50,723) | $ (5,782) | $ 109,862 | $ (16,252) | $ (34,143) | $ 126,114 | $ 43,572 | $ 185,581 | [1] | $ 113,373 | ||||
[1] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Federal | ||||||||||||||||
Current | $ 2,586 | $ 14,108 | $ (6,889) | |||||||||||||
Deferred | 19,212 | 19,034 | 18,024 | |||||||||||||
Total | 21,798 | 33,142 | 11,135 | |||||||||||||
State | ||||||||||||||||
Current | (1,857) | 12,565 | 379 | |||||||||||||
Deferred | (1,324) | (2,502) | (4,096) | |||||||||||||
Total | (3,181) | 10,063 | (3,717) | |||||||||||||
Foreign | ||||||||||||||||
Current | 16,048 | 11,671 | 15,117 | |||||||||||||
Deferred | 3,772 | 1,170 | 5,402 | |||||||||||||
Total | 19,820 | 12,841 | 20,519 | |||||||||||||
Income tax provision | $ 65,758 | $ (2,233) | $ (20,914) | $ (4,174) | $ 43,171 | $ (6,426) | $ (17,669) | $ 36,970 | $ 38,437 | $ 56,046 | [1] | $ 27,937 | ||||
[1] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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 Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Tax Disclosure [Abstract] | ||||||||||||||||
Tax expense at federal rate of 35% | $ 15,250 | $ 64,953 | $ 39,680 | |||||||||||||
State income taxes, net of federal benefit | (2,238) | 7,060 | (2,462) | |||||||||||||
Change in valuation allowance | (1,884) | (8,524) | (9,066) | |||||||||||||
Foreign tax rate differential | (15,622) | (11,830) | (5,710) | |||||||||||||
Unrecognized tax benefit increase | 3,007 | 1,045 | 2,977 | |||||||||||||
Tax effect of foreign operations | 5,532 | 5,988 | 261 | |||||||||||||
Acquisition costs | 0 | 28 | 0 | |||||||||||||
Tax benefit of research & development | (1,904) | (1,088) | (871) | |||||||||||||
Transition tax | 20,867 | 0 | 0 | |||||||||||||
Revaluation of deferred tax balances | 14,953 | 0 | 0 | |||||||||||||
Performance based compensation | 2,081 | 0 | 0 | |||||||||||||
Domestic production activities deduction | (3,793) | (700) | 0 | |||||||||||||
Other | 2,188 | (886) | 3,128 | |||||||||||||
Income tax provision | $ 65,758 | $ (2,233) | $ (20,914) | $ (4,174) | $ 43,171 | $ (6,426) | $ (17,669) | $ 36,970 | $ 38,437 | $ 56,046 | [1] | $ 27,937 | ||||
[1] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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 Dif82
Income Taxes - Summary of Differences Between Income Tax Expense Computed at Statutory Federal Income Tax Rate and Per Consolidated Statements of Operations (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 38,419 | $ 65,351 |
Tax credits | 37,305 | 25,173 |
Compensation | 18,124 | 39,340 |
Deferred revenue | 22,248 | 27,303 |
Other | 9,055 | 6,279 |
Gross deferred income tax assets | 125,151 | 163,446 |
Less: valuation allowance | (7,808) | (9,659) |
Net deferred income tax assets | 117,343 | 153,787 |
Deferred income tax liabilities: | ||
Depreciation and amortization | (67,504) | (102,657) |
Total deferred income tax liabilities | (67,504) | (102,657) |
Net deferred income taxes | 49,839 | 51,130 |
Deferred income taxes / liabilities included in the balance sheet are: | ||
Deferred income tax asset - noncurrent | 66,749 | 77,479 |
Deferred income tax liability - noncurrent | (16,910) | (26,349) |
Net deferred income taxes | $ 49,839 | $ 51,130 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance of unrecognized tax benefits at beginning of year | $ 24,278 | $ 21,079 | $ 14,780 |
Increases for tax positions of prior years | 2,478 | 58 | 1,449 |
Decreases for tax positions of prior years | (114) | (361) | (47) |
Increases for tax positions established for the current period | 1,677 | 5,185 | 9,866 |
Decreases for settlements with taxing authorities | (154) | (167) | (594) |
Reductions resulting from lapse of applicable statute of limitation | (1,155) | (1,310) | (4,218) |
Adjustment resulting from foreign currency translation | 227 | (206) | (157) |
Balance of unrecognized tax benefits at end of year | $ 27,237 | $ 24,278 | $ 21,079 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 23, 2015 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments and Contingencies [Line Items] | |||||
Total operating lease expense | $ 24.1 | $ 25.3 | $ 26.6 | ||
Loss Contingency, name of plaintiff | Baldwin Hackett & Meeks, Inc. | ||||
Loss contingency, damages sought, value | $ 43.8 | ||||
Loss contingency, damages awarded, value | $ 43.8 | ||||
BHMI judgment and related fees and interest expense | $ 2.7 | 48.1 | |||
General and Administrative Expense [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
BHMI judgment and related fees and interest expense | 46.7 | ||||
Interest Expense [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
BHMI judgment and related fees and interest expense | $ 1.4 |
Commitments and Contingencies86
Commitments and Contingencies - Aggregate Minimum Operating Lease Payment (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases | |
2,018 | $ 17,172 |
2,019 | 15,352 |
2,020 | 12,502 |
2,021 | 8,723 |
2,022 | 6,536 |
Thereafter | 26,479 |
Total minimum lease payments | $ 86,764 |
Accumulated Other Comprehensi87
Accumulated Other Comprehensive Loss - Activity within Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 754,917 | $ 654,400 | $ 581,405 |
Other comprehensive income (loss) | 16,744 | (22,524) | (51,693) |
Ending Balance | 764,597 | 754,917 | 654,400 |
Unrealized Gain on Available-for-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 22,977 | ||
Other comprehensive income (loss) | (22,977) | ||
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (94,100) | (71,576) | (42,860) |
Other comprehensive income (loss) | 16,744 | (22,524) | (28,716) |
Ending Balance | (77,356) | (94,100) | (71,576) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (94,100) | (71,576) | (19,883) |
Other comprehensive income (loss) | 16,744 | (22,524) | (51,693) |
Ending Balance | $ (77,356) | $ (94,100) | $ (71,576) |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||||
Revenues: | ||||||||||||||||||||||
Software as a service and platform as a service | $ 112,895 | $ 99,761 | $ 113,469 | $ 99,447 | $ 101,119 | $ 96,169 | $ 102,265 | $ 111,736 | $ 425,572 | $ 411,289 | $ 446,057 | |||||||||||
License | 129,546 | 50,017 | 54,180 | 59,381 | 159,277 | 43,256 | 33,510 | 37,423 | 293,124 | 273,466 | 251,205 | |||||||||||
Maintenance | 55,242 | 56,349 | 56,009 | 54,471 | 58,072 | 57,741 | 60,332 | 57,331 | 222,071 | 233,476 | 241,895 | |||||||||||
Services | 28,712 | 19,608 | 16,941 | 18,163 | 24,262 | 19,809 | 23,823 | 19,576 | 83,424 | 87,470 | 106,820 | |||||||||||
Total revenues | 326,395 | 225,735 | 240,599 | 231,462 | 342,730 | 216,975 | 219,930 | 226,066 | 1,024,191 | 1,005,701 | 1,045,977 | |||||||||||
Operating expenses: | ||||||||||||||||||||||
Cost of revenue | [1] | 115,993 | 107,393 | 120,357 | 108,543 | 110,829 | 100,267 | 115,384 | 118,434 | 452,286 | 444,914 | 472,299 | ||||||||||
Research and development | 30,732 | 33,935 | 34,969 | 37,285 | 37,665 | [2] | 42,210 | [2] | 46,421 | [2] | 43,604 | [2] | 136,921 | 169,900 | [2] | 145,924 | ||||||
Selling and marketing | 26,695 | 25,236 | 28,817 | 27,137 | 29,421 | [2] | 29,874 | [2] | 28,795 | [2] | 29,992 | [2] | 107,885 | 118,082 | [2] | 129,407 | ||||||
General and administrative | 22,700 | [3] | 25,302 | [3] | 72,527 | [3] | 32,503 | [3] | 21,639 | [2] | 31,390 | [2] | 34,520 | [2] | 26,068 | [2] | 153,032 | [3] | 113,617 | [2] | 87,419 | |
Gain on sale of CFS assets | 489 | (151,952) | (151,463) | |||||||||||||||||||
Depreciation and amortization | 22,238 | 22,446 | 22,372 | 22,371 | 22,833 | 22,098 | 21,382 | 23,208 | 89,427 | 89,521 | 82,980 | |||||||||||
Total operating expenses | 218,358 | 214,312 | 279,042 | 227,839 | 222,387 | [2] | 226,328 | [2] | 246,502 | [2] | 89,354 | [2] | 939,551 | 784,571 | [2] | |||||||
Operating income (loss) | 108,037 | 11,423 | (38,443) | 3,623 | 120,343 | [2] | (9,353) | [2] | (26,572) | [2] | 136,712 | [2] | 84,640 | 221,130 | [2] | 127,948 | ||||||
Other income (expense): | ||||||||||||||||||||||
Interest expense | (8,815) | (9,374) | (10,664) | (10,160) | (10,217) | (9,838) | (9,715) | (10,414) | (39,013) | (40,184) | (41,372) | |||||||||||
Interest income | 143 | 165 | 150 | 106 | 114 | 145 | 121 | 150 | 564 | 530 | 386 | |||||||||||
Other, net | (443) | (1,059) | (1,766) | 649 | (378) | 2,794 | 2,023 | (334) | (2,619) | 4,105 | 26,411 | |||||||||||
Total other income (expense) | (9,115) | (10,268) | (12,280) | (9,405) | (10,481) | (6,899) | (7,571) | (10,598) | (41,068) | (35,549) | (14,575) | |||||||||||
Income (loss) before income taxes | 98,922 | 1,155 | (50,723) | (5,782) | 109,862 | [2] | (16,252) | [2] | (34,143) | [2] | 126,114 | [2] | 43,572 | 185,581 | [2] | 113,373 | ||||||
Income tax expense (benefit) | 65,758 | (2,233) | (20,914) | (4,174) | 43,171 | [2] | (6,426) | [2] | (17,669) | [2] | 36,970 | [2] | 38,437 | 56,046 | [2] | 27,937 | ||||||
Net income (loss) | $ 33,164 | $ 3,388 | $ (29,809) | $ (1,608) | $ 66,691 | [2] | $ (9,826) | [2] | $ (16,474) | [2] | $ 89,144 | [2] | $ 5,135 | $ 129,535 | [2] | $ 85,436 | ||||||
Earnings (loss) per share | ||||||||||||||||||||||
Basic | $ 0.28 | $ 0.03 | $ (0.25) | $ (0.01) | $ 0.57 | $ (0.08) | $ (0.14) | $ 0.75 | $ 0.04 | $ 1.10 | $ 0.73 | |||||||||||
Diluted | $ 0.28 | $ 0.03 | $ (0.25) | $ (0.01) | $ 0.56 | $ (0.08) | $ (0.14) | $ 0.74 | $ 0.04 | $ 1.09 | $ 0.72 | |||||||||||
[1] | The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. | |||||||||||||||||||||
[2] | The Company adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, ("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. | |||||||||||||||||||||
[3] | General and administrative expenses in the second quarter includes the BHMI judgment as discussed in Note 14. |