Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ACIW | |
Entity Registrant Name | ACI WORLDWIDE, INC. | |
Entity Central Index Key | 935,036 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 116,425,416 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 74,281 | $ 69,710 |
Receivables, net of allowances of $4,001 and $4,799, respectively | 278,369 | 262,845 |
Recoverable income taxes | 7,673 | 7,921 |
Prepaid expenses | 29,961 | 23,219 |
Other current assets | 29,010 | 58,126 |
Total current assets | 419,294 | 421,821 |
Noncurrent assets | ||
Accrued receivables, net | 187,133 | |
Property and equipment, net | 80,775 | 80,228 |
Software, net | 150,653 | 155,386 |
Goodwill | 909,691 | 909,691 |
Intangible assets, net | 188,688 | 191,281 |
Deferred income taxes, net | 22,109 | 66,749 |
Other noncurrent assets | 56,826 | 36,483 |
TOTAL ASSETS | 2,015,169 | 1,861,639 |
Current liabilities | ||
Accounts payable | 33,479 | 34,718 |
Employee compensation | 34,350 | 48,933 |
Current portion of long-term debt | 20,379 | 17,786 |
Deferred revenue | 111,639 | 107,543 |
Income taxes payable | 6,178 | 9,898 |
Other current liabilities | 64,312 | 102,904 |
Total current liabilities | 270,337 | 321,782 |
Noncurrent liabilities | ||
Deferred revenue | 45,380 | 51,967 |
Long-term debt | 658,861 | 667,943 |
Deferred income taxes, net | 26,564 | 16,910 |
Other noncurrent liabilities | 35,005 | 38,440 |
Total liabilities | 1,036,147 | 1,097,042 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at March 31, 2018 and December 31, 2017 | ||
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at March 31, 2018 and December 31, 2017 | 702 | 702 |
Additional paid-in capital | 616,913 | 610,345 |
Retained earnings | 775,420 | 550,866 |
Treasury stock, at cost, 24,130,770 and 23,428,324 shares at March 31, 2018 and December 31, 2017, respectively | (342,316) | (319,960) |
Accumulated other comprehensive loss | (71,697) | (77,356) |
Total stockholders' equity | 979,022 | 764,597 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,015,169 | $ 1,861,639 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 4,001 | $ 4,799 |
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 | 24,130,770 | 23,428,324 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Revenues | |||
Software as a service and platform as a service | $ 104,280 | $ 99,447 | |
License | 28,046 | 59,381 | |
Maintenance | 56,659 | 54,471 | |
Services | 20,325 | 18,163 | |
Total revenues | 209,310 | 231,462 | |
Operating expenses | |||
Cost of revenue | [1] | 107,336 | 108,543 |
Research and development | 36,791 | 37,285 | |
Selling and marketing | 31,893 | 27,137 | |
General and administrative | 28,649 | 32,503 | |
Depreciation and amortization | 21,345 | 22,371 | |
Total operating expenses | 226,014 | 227,839 | |
Operating income (loss) | (16,704) | 3,623 | |
Other income (expense) | |||
Interest expense | (9,365) | (10,160) | |
Interest income | 2,744 | 106 | |
Other, net | (55) | 649 | |
Total other income (expense) | (6,676) | (9,405) | |
Loss before income taxes | (23,380) | (5,782) | |
Income tax benefit | (3,952) | (4,174) | |
Net loss | $ (19,428) | $ (1,608) | |
Loss per common share | |||
Basic | $ (0.17) | $ (0.01) | |
Diluted | $ (0.17) | $ (0.01) | |
Weighted average common shares outstanding | |||
Basic | 115,642 | 116,610 | |
Diluted | 115,642 | 116,610 | |
[1] | The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (19,428) | $ (1,608) |
Other comprehensive income: | ||
Foreign currency translation adjustments | 5,659 | 6,051 |
Total other comprehensive income | 5,659 | 6,051 |
Comprehensive income (loss) | $ (13,769) | $ 4,443 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (19,428) | $ (1,608) |
Adjustments to reconcile net loss to net cash flows from operating activities: | ||
Depreciation | 5,926 | 6,274 |
Amortization | 19,067 | 19,364 |
Amortization of deferred debt issuance costs | 699 | 1,734 |
Deferred income taxes | (4,827) | (5,919) |
Stock-based compensation expense | 6,362 | 6,297 |
Other | (663) | 538 |
Changes in operating assets and liabilities | ||
Receivables | 68,741 | 84,033 |
Accounts payable | (2,611) | (3,689) |
Accrued employee compensation | (14,743) | (12,421) |
Current income taxes | (3,569) | (3,339) |
Deferred revenue | 11,326 | 9,049 |
Other current and noncurrent assets and liabilities | (21,144) | (14,627) |
Net cash flows from operating activities | 45,136 | 85,686 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (5,937) | (6,566) |
Purchases of software and distribution rights | (6,652) | (5,839) |
Net cash flows from investing activities | (12,589) | (12,405) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 753 | 693 |
Proceeds from exercises of stock options | 9,118 | 7,035 |
Repurchase of restricted stock for tax withholdings | (914) | (3,155) |
Repurchases of common stock | (31,113) | |
Proceeds from revolving credit facility | 48,000 | 12,000 |
Repayment of revolving credit facility | (50,000) | (100,000) |
Proceeds from term portion of credit agreement | 415,000 | |
Repayment of term portion of credit agreement | (5,187) | (370,477) |
Payment of debt issuance costs | (5,340) | |
Payments on other debt and capital leases | (352) | (4,629) |
Net cash flows from financing activities | (29,695) | (48,873) |
Effect of exchange rate fluctuations on cash | 1,719 | (417) |
Net increase in cash and cash equivalents | 4,571 | 23,991 |
Cash and cash equivalents, beginning of period | 69,710 | 75,753 |
Cash and cash equivalents, end of period | 74,281 | 99,744 |
Supplemental cash flow information | ||
Income taxes paid | 8,263 | 6,919 |
Interest paid | $ 13,127 | $ 13,421 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Condensed Consolidated Financial Statements | 1. Condensed Consolidated Financial Statements The unaudited condensed consolidated financial statements include the accounts of ACI Worldwide, Inc. and its wholly-owned The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Other Current Assets and Other Current Liabilities (in thousands) March 31, 2018 December 31, Settlement deposits $ 8,905 $ 22,282 Settlement receivables 11,883 30,063 Other 8,222 5,781 Total other current assets $ 29,010 $ 58,126 (in thousands) March 31, 2018 December 31, Settlement payables $ 20,245 $ 48,953 Accrued interest 2,554 7,291 Vendor financed licenses 3,068 1,862 Royalties payable 9,883 9,264 Other 28,562 35,534 Total other current liabilities $ 64,312 $ 102,904 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. Upon confirmation that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may 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 Accounts The Company also enters into agreements with certain clients to process payment funds on their behalf. When an ACH or automated teller machine network payment transaction is processed, a transaction is initiated to withdraw funds from the designated source account and deposit them into a settlement account, which is a trust account maintained for the benefit of the Company’s clients. A simultaneous transaction is initiated to transfer funds from the settlement account to the intended destination account. These “back to back” transactions are designed to settle at the same time, usually overnight, such that the Company receives the funds from the source at the same time as it sends the funds to their destination. However, due to the transactions being with various financial institutions there may be timing differences that result in float balances. These funds are maintained in accounts for the benefit of the client which is separate from the Company’s corporate assets. As the Company does not take ownership of the funds, 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 March 31, 2018 and December 31, 2017 were $216.1 million and $238.9 million, respectively. Fair Value The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. The fair value of the Company’s Senior Notes was $303.3 million and $305.7 million at March 31, 2018 and December 31, 2017, respectively. The fair values of cash and cash equivalents approximate the carrying values due to the short period of time to maturity (Level 2 of the fair value hierarchy). Goodwill In accordance with ASC 350, Intangibles – Goodwill and Other, Recoverability of goodwill is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in impairment testing in the absence of available transactional market evidence to determine the fair value. The calculated fair value was substantially in excess of the current carrying value for all reporting units based upon our October 1, 2017 annual impairment test and there have been no indications of impairment in the subsequent periods. New Accounting Standards Recently Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers 340-40, Other Assets and Deferred Costs – Contracts with Customers 340-40). Revenue Recognition 340-40 In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments 2016-15 2016-15 In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory 2016-16, 2016-15 2016-15 Recently Issued Accounting Standards Not Yet Effective In February 2016, the FASB issued ASU 2016-02, Leases In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. of ASU 2018-02 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 2. Revenue Revenue Recognition In accordance with ASC 606 revenue is recognized upon transfer of control of promised products and/or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. Contract Combination. Software as a Service (“SaaS”) and Platform as a Service (“PaaS”) Arrangements License Arrangements. Payment terms for the Company’s software license arrangements generally include fixed license and capacity fees that are payable up front or over time. These arrangements may also include incremental usage-based fees that are payable when the customer exceeds its contracted license capacity limits. The Company accounts for capacity overages as a usage-based royalty that is recognized when the usage occurs. When a software license arrangement contains payment terms that are extended beyond one year, a significant financing component may exist. The significant financing component is calculated as the difference between the stated value and present value of the software license fees and is recognized as interest income over the extended payment period. The total fixed software license fee net of the significant financing component is recognized as revenue at the point in time when the software is transferred to the customer. For those software license arrangements that include customer-specific acceptance provisions, such provisions are generally presumed to be substantive and the Company does not recognize revenue until the earlier of the receipt of a written customer acceptance, objective demonstration that the delivered product meets the customer-specific acceptance criteria or the expiration of the acceptance period. The Company recognizes revenues on such arrangements upon the earlier of receipt of written acceptance or the first production use of the software by the customer. For software license arrangements in which the Company acts as a distributor of another company’s product, and in certain circumstances, modifies or enhances the product, revenues are recorded on a gross basis. These include arrangements in which the Company takes control of the products and is responsible for providing the product or service. For software license arrangements in which the Company acts as a sales agent for another company’s product, revenues are recorded on a net basis. These include arrangements in which the Company does not take control of products and is not responsible for providing the product or service. For software license arrangements in which the Company utilizes a third-party distributor or sales agent, the Company recognizes revenue upon transfer of control of the software license(s) to the third-party distributor or sales agent. The Company’s software license arrangements typically provide the customer with a standard 90-day Software license arrangements typically include an initial post contract customer support (maintenance or “PCS”) term of one year with subsequent renewals for additional years within the initial license period. The Company’s promise to those customers who elect to purchase PCS represents a stand-ready performance obligation that is distinct from the license performance obligation and recognized over the PCS term. The Company also provides various professional services to customers with software licenses. These include project management, software implementation and software modification services. Revenues from arrangements to provide professional services are generally distinct from the other promises in the contract(s) and are recognized as the related services are performed. Consideration payable under these arrangements is either fixed fee or on a time-and-materials The Company estimates the standalone selling price (“SSP”) for maintenance and professional services based on observable standalone sales. The Company applies the residual approach to estimate the SSP for software licenses. Refer to Note 10, Segment Information, Significant Judgments The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information. The Company also applies judgment in determining the term of an arrangement when early termination rights are provided to the customer. The Company’s software license arrangements with its customers often include multiple promises to transfer licensed software products and services. Determining whether the products and/or services are distinct performance obligations that should be accounted for separately may require significant judgment. The Company’s SaaS and PaaS arrangements may include variable consideration in the form of usage-based fees. If the arrangement that includes variable consideration in the form of usage-based fees does not meet the allocation exception for variable consideration, the Company estimates the amount of variable consideration at the outset of the arrangement using either the expected value or most likely amount method, depending on the specifics of each arrangement. These estimates are constrained to the extent that it is probable that a significant reversal of incremental revenue will not occur and are updated each reporting period as additional information becomes available. Judgment is used in determining: (1) whether the financing component in a software license agreement is significant and, if so, (2) the discount rate used in calculating the significant financing component. The Company assesses the significance of the financing component based on the ratio of license fees paid over time to total license fees. If determined to be significant, the financing component is calculated using a rate that discounts the license fees to the cash selling price. Judgment is also used in assessing whether the extension of payment terms in a software license arrangement results in variable consideration and, if so, the amount to be included in the transaction price. The Company applies the portfolio approach to estimating the amount of variable consideration in these arrangements using the most likely amount method that is based on the Company’s historical collection experience under similar arrangements. Significant judgment is required to determine the SSP for each performance obligation, the amount allocated to each performance obligation and whether it depicts the amount that the Company expects to receive in exchange for the related product and/or service. As the selling prices of the Company’s software licenses are highly variable, the Company estimates SSP of its software licenses using the residual approach when the software license is sold with other services and observable SSPs exist for the other services. The Company uses a range of amounts to estimate SSP for maintenance and services. These ranges are based on standalone sales and vary based on the type of service and geographic region. If the SSP of a performance obligation is not directly observable, the Company will maximize observable inputs to determine its SSP. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an accrued receivable when revenue is recognized prior to invoicing and the Company’s right to consideration only requires the passage of time, or deferred revenue when revenue is recognized subsequent to invoicing. Total receivables represent amounts billed and amounts earned that are to be billed in the future (i.e., accrued receivables). Included in accrued receivables are services and SaaS and PaaS revenues earned in the current period but billed in the following period and amounts due under multi-year software license arrangements with extended payment terms for which the Company has an unconditional right to invoice and receive payment in the future. March 31, December 31, (in thousands) 2018 2017 Billed Receivables $ 175,066 $ 240,137 Allowance for doubtful accounts (4,001 ) (4,799 ) Billed Receivables, net $ 171,065 $ 235,338 Accrued receivables 328,546 27,507 Significant financing component (34,109 ) — Total accrued receivables, net 294,437 27,507 Less current accrued receivables 117,276 27,507 Less current significant financing component (9,972 ) — Total long-term accrued receivables, net $ 187,133 $ — Total receivables, net $ 465,502 $ 262,845 No customer accounted for more than 10% of the Company’s consolidated receivables balance as of March 31, 2018 or December 31, 2017. Deferred revenue includes amounts due or received from customers for software licenses, maintenance, services and/or SaaS and PaaS services in advance of recording the related revenue. Changes in deferred revenue were as follows: Deferred (in thousands) Revenue Balance, January 1, 2018 $ 145,344 Deferral of revenue 56,264 Recognition of deferred revenue (44,589 ) Balance, March 31, 2018 $ 157,019 Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include: (1) Revenue that will be recognized in future periods from capacity overages that are accounted for as a usage-based royalty. (2) SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the ‘right to invoice’ practical expedient. (3) SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the direct allocation method. Revenue allocated to remaining performance obligations was $589.5 million as of March 31, 2018, of which the Company expects to recognize approximately 50% over the next 12 months and the remainder thereafter. During the three-months ended March 31, 2018, the revenue recognized by the Company from performance obligations satisfied in previous periods was not material. Costs to Obtain and Fulfill a Contract The Company accounts for costs to obtain and fulfill its contracts in accordance with ASC 340, Other Assets and Deferred Costs The Company capitalizes certain of its sales commissions that meet the definition of incremental costs of obtaining a contract and for which the amortization period is greater than one year. The costs associated with those sales commissions is capitalized during the period in which the Company becomes obligated to pay the commissions and is amortized over the period in which the related products or services are transferred to the customer. As of March 31, 2018, $0.4 million and $19.1 million of these costs are included in other current and other non-current The Company capitalizes costs incurred to fulfill its contracts that: (1) relate directly to the arrangement, (2) are expected to generate resources that will be used to satisfy the Company’s performance obligation under the arrangement, and (3) are expected to be recovered through revenue generated under the arrangement. Contract fulfillment costs are expensed as the Company transfers the related services to the customer. As of March 31, 2018, $0.2 million and $12.0 million of these costs are included in other current and other non-current Financial Statement Effect of Applying ASC 606 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 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. The financial statement line items affected by adoption of ASC 606 is as follows: March 31, 2018 (in thousands) As Reported Without Effect of Change Higher / (Lower) Assets Receivables, net of allowances $ 278,369 $ 205,165 $ 73,204 Recoverable income taxes 7,673 6,538 1,135 Prepaid expenses 29,961 30,702 (741 ) Other current assets 29,010 28,795 215 Accrued receivables, net 187,133 — 187,133 Deferred income taxes, net 22,109 65,503 (43,394 ) Other noncurrent assets 56,826 38,945 17,881 Liabilities Deferred revenue 111,639 128,304 (16,665 ) Income taxes payable 6,178 6,268 (90 ) Other current liabilities 64,312 64,546 (234 ) Deferred income taxes, net 26,564 7,876 18,688 Stockholders’ equity Total stockholders’ equity 979,022 745,288 233,734 For the Three Months Ended March 31, 2018 (in thousands) As Reported Without application of Effect of Change Higher / (Lower) Revenues Software as a service and platform as a service $ 104,280 $ 105,174 $ (894 ) License 28,046 43,921 (15,875 ) Maintenance 56,659 55,771 888 Services 20,325 20,029 296 Operating expenses Selling and marketing 31,893 30,346 1,547 Other income (expense) Interest income 2,744 179 2,565 Other, net (55 ) (784 ) 729 Income tax provision Income tax benefit (3,952 ) (2,043 ) (1,909 ) The following summarizes the significant changes resulting from the adoption of ASC 606 compared to if the Company had continued to recognize revenues under ASC 985-605, Revenue Recognition: Software Receivables, Deferred Revenue, License Revenue, and Interest Income The change in receivables, deferred revenue, license revenue, and interest income is due to a change in the timing and the amount of recognition for software license revenues under ASC 606. Under ASC 605, the Company recognizes revenue upon delivery provided (i) there is persuasive evidence of an arrangement, (ii) collection of the fee is considered probable, and (iii) the fee is fixed or determinable. 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 fee is deemed not 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. License revenue under ASC 605 includes revenue from software license arrangements with extended payment terms for which the due and payable pattern of recognition was applied. Under ASC 606, license revenue from these software license arrangements is accelerated (i.e. upfront recognition) and adjusted for the effects of the financing component, if significant. The significant financing component in these software license arrangements is recognized as interest income over the extended payment period. As many of these software license arrangements were active as of the date the Company adopted ASC 606, the license fees are included in the Company’s cumulative adjustment to retained earnings. Other Current Assets, Other Noncurrent Assets, and Selling and Marketing Under ASC 606, certain of the Company’s sales commissions meet the definition of incremental costs of obtaining a contract. Accordingly, these costs are capitalized and the expense is recognized as the related goods or services are transferred to the customer. Prior to the adoption of ASC 606, the Company recognized sales commission expenses as they were incurred. Deferred Income Taxes, Net The change in deferred income taxes is primarily due to the deferred tax effects resulting from the adjustment to retained earnings for the cumulative effect of applying ASC 606 to active contracts as of the adoption date. The adoption of ASC 606 had no impact in total on the Company’s cash flows from operations. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 3. Debt As of March 31, 2018, the Company had $389.1 million and $300.0 million outstanding under Term Credit Facility and Senior Notes, respectively, with up to $500.0 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. Senior Notes On August 20, 2013, the Company completed a $300.0 million offering of Senior Notes at an issue price of 100% of the principal amount in a private placement for resale to qualified institutional buyers. The Senior Notes bear an interest rate of 6.375% per annum, payable semi-annually in arrears on August 15 and February 15 of each year, commencing on February 15, 2014. Interest began accruing on August 20, 2013. Maturities on long-term debt outstanding at March 31, 2018 are as follows: Fiscal year ending December 31, (in thousands) 2018 $ 15,563 2019 31,125 2020 331,125 2021 41,500 2022 269,750 Total $ 689,063 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, 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 an interest coverage ratio at or above a specified amount. If an event of default, as specified in the Credit Agreement and Senior Notes agreement, shall occur and be continuing, the Company may be required to repay all amounts outstanding under the Credit Facility and Senior Notes. As of March 31, 2018, and at all times during the period, the Company was in compliance with its financial debt covenants. (in thousands) As of March 31, As of December 31, Term credit facility $ 389,063 $ 394,250 Revolving credit facility — 2,000 6.375% Senior Notes, due August 2020 300,000 300,000 Debt issuance costs (9,823 ) (10,521 ) Total debt 679,240 685,729 Less current portion of term credit facility 23,344 20,750 Less current portion of debt issuance costs (2,965 ) (2,964 ) Total long-term debt $ 658,861 $ 667,943 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | 4. Stock-Based 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 three-months ended March 31, 2018 and 2017, totaled 38,145 and 44,685, respectively. Stock-Based Payments A summary of stock options issued pursuant to the Company’s stock incentive plans is as follows: Number of Weighted- Weighted- Aggregate In-the-Money Outstanding as of December 31, 2017 6,162,717 $ 16.83 Granted 170,455 23.36 Exercised (656,898 ) 13.88 Forfeited (3,255 ) 17.89 Outstanding as of March 31, 2018 5,673,019 $ 17.37 6.74 $ 36,025,874 Exercisable as of March 31, 2018 4,081,780 $ 16.58 6.11 $ 29,135,028 The weighted-average grant date fair value of stock options granted during the three months ended March 31, 2018 and 2017 was $7.03 and $6.24, respectively. The Company issued treasury shares for the exercise of stock options during the three months ended March 31, 2018 and 2017. The total intrinsic value of stock options exercised during the three months ended March 31, 2018 and 2017 was $7.2 million and $4.6 million, respectively. The fair value of options that do not vest based on the achievement of certain market conditions granted during the three months ended March 31, 2018 and 2017 were estimated on the date of grant using the Black-Scholes option-pricing , Three Months Ended Three Months Ended Expected life (years) 5.6 5.6 Interest rate 2.7 % 1.9 % Volatility 26.4 % 29.4 % Dividend yield — — Expected volatilities are based on the Company’s historical common stock volatility derived from historical stock price data for historical periods commensurate with the options’ expected life. The expected life is the average number of years that the Company estimated that the options will be outstanding, based primarily on historical employee option exercise behavior. The risk-free interest rate is based on the implied yield currently available on United States Treasury zero coupon issues with a term equal to the expected term at the date of grant of the options. The expected dividend yield is zero as the Company has historically paid no dividends and does not anticipate dividends to be paid in the future. Long-term Incentive Program Performance Share Awards A summary of nonvested long-term incentive program performance share awards (“LTIP performance shares”) outstanding as of March 31, 2018 and changes during the period are as follows: Nonvested LTIP Performance Shares Number of Weighted- Nonvested as of December 31, 2017 1,125,035 $ 18.94 Forfeited (8,008 ) 19.57 Nonvested as of March 31, 2018 1,117,027 $ 18.94 Restricted Share Awards A summary of nonvested restricted share awards (“RSAs”) as of March 31, 2018 and changes during the period are as follows: Nonvested Restricted Share Awards Number of Weighted-Average Grant Nonvested as of December 31, 2017 503,237 $ 20.63 Vested (123,427 ) 20.12 Forfeited (10,727 ) 20.12 Nonvested as of March 31, 2018 369,083 $ 20.81 During the three-months ended March 31, 2018, the Company had 123,427 RSA shares vested. The Company withheld 40,335 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. Performance-Based Restricted Share Awards A summary of nonvested Performance-Based Restricted Share Awards (“PBRSAs”) as of March 31, 2018 and changes during the period are as follows: Nonvested Performance-Based Restricted Share Awards Number of Performance-Based Share Awards Weighted-Average Grant Nonvested as of December 31, 2017 173,636 $ 24.41 Nonvested as of March 31, 2018 173,636 $ 24.41 Total Shareholder Return Awards During the three-months ended March 31, 2018 and 2017, the Company granted total shareholder return (“TSR”) awards, pursuant to the 2016 Equity and Performance Incentive Plan. 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 TSRs over a three-year performance period based on the grant date fair value. The grant date fair value of the TSRs was estimated using the following weighted-average assumptions: Three Months Ended Three Months Ended Expected life (years) 2.9 2.9 Interest rate 2.4 % 1.5 % Volatility 28.0 % 26.5 % Dividend Yield — — A summary of nonvested TSRs outstanding as of March 31, 2018 and changes during the period are as follows: Nonvested Total Shareholder Return Awards Number of Weighted- Nonvested as of December 31, 2017 143,649 $ 24.37 Granted 541,214 31.31 Forfeited (1,837 ) 31.31 Nonvested as of March 31, 2018 683,026 $ 29.85 Restricted Share Units During the three months ended March 31, 2018, the Company granted restricted share units (“RSUs”) awards, pursuant to the 2016 Equity and Performance Incentive Plan. 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 on the vesting date. The Company estimates the fair value of the RSUs based upon the market price of the Company’s stock at the date of grant. The Company recognizes compensation expense for RSUs on a straight-line basis over the requisite service period. A summary of nonvested RSUs as of March 31, 2018 and changes during the period are as follows: Nonvested Restricted Share Units Number of Weighted- Nonvested as of December 31, 2017 — $ — Granted 581,945 23.36 Forfeited (2,461 ) 23.36 Nonvested as of March 31, 2018 579,484 $ 23.36 As of March 31, 2018, there were unrecognized compensation costs of $18.5 million related to the TSRs, $13.1 million related to RSUs, $9.8 million related to the LTIP performance shares, $7.6 million related to nonvested stock options, $5.5 million related to the nonvested RSAs, and $0.3 million related to nonvested PBRSAs, which the Company expects to recognize over weighted-average periods of 2.8 years, 2.9 years, 1.7 years, 1.2 years, 1.8 years, and 0.2 years, respectively. The Company recorded stock-based compensation expenses recognized under ASC 718, Compensation – Stock Compensation |
Software and Other Intangible A
Software and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Software and Other Intangible Assets | 5. Software and Other Intangible Assets At March 31, 2018, software net book value totaling $150.7 million, net of $236.8 million of accumulated amortization, includes the net book value of software marketed for external sale of $37.9 million. The remaining software net book value of $112.8 million is comprised of various software that has been acquired or developed for internal use. 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. Quarterly amortization of software marketed for external sale is computed using the greater of the ratio of current revenues to total estimated revenues expected to be derived from the software or the straight-line method over an estimated useful life of three to ten years. Software for resale amortization expense recorded in the three months ended March 31, 2018 and 2017 totaled $3.6 million and $3.3 million, respectively. These software amortization expense amounts are reflected in cost of revenue in the condensed consolidated statements of operations. Quarterly 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 includes software acquired through acquisitions that is used to provide certain of our SaaS and PaaS offerings. Amortization of software for internal use of $10.5 million and $11.3 million for the three months ended March 31, 2018 and 2017, respectively, is included in depreciation and amortization in the condensed 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) March 31, 2018 December 31, 2017 Gross Accumulated Net Balance Gross Accumulated Net Balance Customer relationships $ 308,489 $ (122,164 ) $ 186,325 $ 305,218 $ (116,677 ) $ 188,541 Trademarks and tradenames 16,842 (14,479 ) 2,363 16,646 (13,906 ) 2,740 $ 325,331 $ (136,643 ) $ 188,688 $ 321,864 $ (130,583 ) $ 191,281 Other intangible assets amortization expense for the three months ended March 31, 2018 and 2017 totaled $4.9 million and $4.8 million, respectively. Based on capitalized software and other intangible assets at March 31, 2018, estimated amortization expense for future fiscal years is as follows: Fiscal Year Ending December 31, Software Other (in thousands) Remainder of 2018 $ 38,406 $ 14,410 2019 42,955 18,777 2020 33,127 17,866 2021 20,461 17,342 2022 8,780 17,184 2023 4,640 16,854 Thereafter 2,284 86,255 Total $ 150,653 $ 188,688 |
Corporate Restructuring and Oth
Corporate Restructuring and Other Organizational Changes | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Corporate Restructuring and Other Organizational Changes | 6. Corporate Restructuring and Other Organizational Changes The components of corporate restructuring and other reorganization activities are included in the following table: (in thousands) Facility Balance, December 31, 2017 $ 5,945 Amounts paid during the period (455 ) Foreign currency translation 79 Balance, March 31, 2018 $ 5,569 Of the $5.6 million facility closure liability, $1.8 million and $3.8 million is recorded in other current and noncurrent liabilities, respectively, in the accompanying condensed consolidated balance sheet at March 31, 2018. |
Common Stock and Treasury Stock
Common Stock and Treasury Stock | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Common Stock and Treasury Stock | 7. Common Stock and Treasury Stock In 2005, the Company’s Board of Directors (“the Board”) approved a stock repurchase program authorizing the Company, as market and business conditions warrant, to acquire its common stock and periodically authorizes additional funds for the program. In February 2018, the Board approved $200.0 million for the stock repurchase program. The Company repurchased 1,346,427 shares for $31.1 million under the program during the three months ended March 31, 2018. Under the program to date, the Company has repurchased 43,129,393 shares for approximately $524.4 million. The maximum remaining authorized for purchase under the stock repurchase program was $200.0 million as of March 31, 2018. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 8. Loss Per Share Basic loss per share is computed on the basis of weighted average outstanding common shares. Diluted loss per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and other outstanding dilutive securities. The following table reconciles the average share amounts used to compute both basic and diluted loss per share (in thousands): Three Months Ended March 31, 2018 2017 Weighted average shares outstanding: Basic weighted average shares outstanding 115,642 116,610 Add: Dilutive effect of stock options — — Diluted weighted average shares outstanding 115,642 116,610 The diluted loss per share computation excludes 8.6 million and 10.5 million options to purchase shares, contingently issuable shares, and restricted share awards during the three months ended March 31, 2018 and 2017, respectively, as their effect would be anti-dilutive. Common stock outstanding as of March 31, 2018 and December 31, 2017 was 116,394,285 and 117,096,731, respectively. |
Other, net
Other, net | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other, net | 9. Other, net Other is comprised of foreign currency transaction gains (losses) of $(0.1) million and $0.6 million for the three months ended March 31, 2018 and 2017, respectively. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information The Company reports financial performance based on its segments, ACI On Premise and ACI On Demand, and analyzes Segment Adjusted EBITDA as a measure of segment profitability. The Company’s chief operating decision maker (“CODM”), which is also our Chief Executive Officer, together with other senior management personnel, focus their review of consolidated financial information and the allocation of resources based upon the operating results, including revenues and Segment Adjusted EBITDA, for the segments ACI On Premise and ACI On Demand, separate from the Corporate operations. ACI 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. Segment Adjusted EBITDA is the measure reported to the CODM for purposes of making decisions on allocating resources and assessing the performance of the Company’s segments and, therefore, Segment Adjusted EBITDA is presented in conformity with ASC 280, Segment Reporting. Corporate and other unallocated expenses 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, and other costs that are not considered when management evaluates segment performance. The following is selected financial data for the Company’s reportable segments (in thousands): Three Months Ended March 31, 2018 March 31, 2017 Revenue ACI On Premise $ 105,030 $ 131,908 ACI On Demand 104,280 99,554 Total revenue $ 209,310 $ 231,462 Segment Adjusted EBITDA ACI On Premise $ 38,898 $ 68,395 ACI On Demand (4,233 ) (7,007 ) Depreciation and amortization (24,993 ) (25,638 ) Stock-based compensation (6,362 ) (6,297 ) Corporate and unallocated expenses (20,014 ) (25,830 ) Interest, net (6,621 ) (10,054 ) Other, net (55 ) 649 Loss before income taxes $ (23,380 ) $ (5,782 ) Depreciation and amortization ACI On Premise $ 2,975 $ 3,261 ACI On Demand 7,736 8,388 Corporate 14,282 13,989 Total depreciation and amortization $ 24,993 $ 25,638 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 and revenues by geographic location and primary solution category for the periods indicated (in thousands): Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 (in thousands) ACI On Premise ACI On Demand Total ACI On Premise ACI On Demand Total Primary Geographic Markets Americas - United States 30,864 88,946 119,810 49,193 85,809 135,002 Americas - Other 16,784 2,319 19,103 14,874 2,252 17,126 EMEA 38,686 12,009 50,695 51,904 11,079 62,983 Asia Pacific 18,696 1,006 19,702 15,937 414 16,351 Total $ 105,030 $ 104,280 $ 209,310 $ 131,908 $ 99,554 $ 231,462 Primary Solution Categories Bill Payments — 66,168 66,168 — 65,246 65,246 Digital Channels/Online 11,363 10,644 22,007 12,488 10,491 22,979 Merchant Payments 5,010 12,371 17,381 6,312 11,359 17,671 Payments Risk Management 10,420 11,798 22,218 5,160 10,308 15,468 Real Time Payments 13,641 450 14,091 13,548 195 13,743 Retail Payments 64,596 2,849 67,445 94,400 1,955 96,355 Total $ 105,030 $ 104,280 $ 209,310 $ 131,908 $ 99,554 $ 231,462 The following is selected financial data for the Company’s long-lived assets by geographic location for the periods indicated (in thousands): (in thousands) March 31, December 31, Long lived assets United States $ 854,156 $ 759,513 Other 719,610 613,556 $ 1,573,766 $ 1,373,069 No single customer accounted for more than 10% of the Company’s consolidated revenues during the three months ended March 31, 2018 and 2017. No other country outside the United States accounted for more than 10% of the Company’s consolidated revenues during the three months ended March 31, 2018 and 2017. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into U.S. Law. In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act one-time At March 31, 2018, the Company has not yet determined its policy election with respect to whether to record deferred taxes for basis differences expected to reverse as a result of the Global Intangible Low-Taxed The effective tax rate for the three months ended March 31, 2018 was 17%. The losses of the Company’s foreign entities for the three months ended March 31, 2018 were $1.8 million. The effective tax rate for the three months ended March 31, 2018 was negatively impacted by losses in certain foreign jurisdictions taxed at lower rates and domestic taxes resulting from the current GILTI tax, partially offset by equity compensation tax benefits. The effective tax rate for the three months ended March 31, 2017 was 72%. The earnings of the Company’s foreign entities for the three months ended March 31, 2017 were $8.7 million. The effective tax rate for the three months ended March 31, 2017 was negatively impacted by profits in certain foreign jurisdictions taxed at lower rates and domestic losses taxed at higher rates, partially offset by losses in other foreign jurisdictions taxed at lower rates. The Company’s effective tax rate could fluctuate significantly on a quarterly basis and could be negatively affected to the extent earnings are lower in the countries in which it operates that have a lower statutory rate or higher in the countries in which it operates that have a higher statutory rate or to the extent it has losses sustained in countries where the future utilization of losses are uncertain. The Company’s effective tax rate could also fluctuate due to changes in the valuation of its deferred tax assets or liabilities, or by changes in tax laws, regulations, accounting principles, or interpretations thereof. In addition, the Company is occasionally subject to examination of its income tax returns by tax authorities in the jurisdictions it operates. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. The amount of unrecognized tax benefits for uncertain tax positions was $27.5 million as of March 31, 2018 and $27.2 million as of December 31, 2017, excluding related liabilities for interest and penalties of $1.2 million as of March 31, 2018 and December 31, 2017. 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 limitation. The Company continues to evaluate the potential foreign and U.S. state tax liabilities that would result from future repatriations from non-U.S. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 12. Accumulated Other Comprehensive Loss Activity within accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017, which consists of foreign currency translation adjustments, were as follows: (in thousands) Accumulated Balance at December 31, 2017 $ (77,356 ) Other comprehensive income 5,659 Balance at March 31, 2018 $ (71,697 ) Accumulated Balance at December 31, 2016 $ (94,100 ) Other comprehensive income 6,051 Balance at March 31, 2017 $ (88,049 ) |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Other Current Assets and Other Current Liabilities | Other Current Assets and Other Current Liabilities (in thousands) March 31, 2018 December 31, Settlement deposits $ 8,905 $ 22,282 Settlement receivables 11,883 30,063 Other 8,222 5,781 Total other current assets $ 29,010 $ 58,126 (in thousands) March 31, 2018 December 31, Settlement payables $ 20,245 $ 48,953 Accrued interest 2,554 7,291 Vendor financed licenses 3,068 1,862 Royalties payable 9,883 9,264 Other 28,562 35,534 Total other current liabilities $ 64,312 $ 102,904 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. Upon confirmation that the funds have been received, the Company settles the obligation to the client. Due to timing, in some instances, the Company may 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 Accounts | Off Balance Sheet Accounts The Company also enters into agreements with certain clients to process payment funds on their behalf. When an ACH or automated teller machine network payment transaction is processed, a transaction is initiated to withdraw funds from the designated source account and deposit them into a settlement account, which is a trust account maintained for the benefit of the Company’s clients. A simultaneous transaction is initiated to transfer funds from the settlement account to the intended destination account. These “back to back” transactions are designed to settle at the same time, usually overnight, such that the Company receives the funds from the source at the same time as it sends the funds to their destination. However, due to the transactions being with various financial institutions there may be timing differences that result in float balances. These funds are maintained in accounts for the benefit of the client which is separate from the Company’s corporate assets. As the Company does not take ownership of the funds, 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 March 31, 2018 and December 31, 2017 were $216.1 million and $238.9 million, respectively. |
Fair Value | Fair Value The fair value of the Company’s Credit Agreement approximates the carrying value due to the floating interest rate (Level 2 of the fair value hierarchy). The Company measures the fair value of its Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. The fair value of the Company’s Senior Notes was $303.3 million and $305.7 million at March 31, 2018 and December 31, 2017, 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 | Goodwill In accordance with ASC 350, Intangibles – Goodwill and Other, Recoverability of goodwill is measured using a discounted cash flow model incorporating discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in impairment testing in the absence of available transactional market evidence to determine the fair value. The calculated fair value was substantially in excess of the current carrying value for all reporting units based upon our October 1, 2017 annual impairment test and there have been no indications of impairment in the subsequent periods. |
New Accounting Standards Recently Adopted | New Accounting Standards Recently Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers 340-40, Other Assets and Deferred Costs – Contracts with Customers 340-40). Revenue Recognition 340-40 In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments 2016-15 2016-15 In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other than Inventory 2016-16, 2016-15 2016-15 |
Recently Issued Accounting Standards Not Yet Effective | Recently Issued Accounting Standards Not Yet Effective In February 2016, the FASB issued ASU 2016-02, Leases In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. of ASU 2018-02 |
Revenue Recognition | Revenue Recognition In accordance with ASC 606 revenue is recognized upon transfer of control of promised products and/or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. Contract Combination. Software as a Service (“SaaS”) and Platform as a Service (“PaaS”) Arrangements License Arrangements. Payment terms for the Company’s software license arrangements generally include fixed license and capacity fees that are payable up front or over time. These arrangements may also include incremental usage-based fees that are payable when the customer exceeds its contracted license capacity limits. The Company accounts for capacity overages as a usage-based royalty that is recognized when the usage occurs. When a software license arrangement contains payment terms that are extended beyond one year, a significant financing component may exist. The significant financing component is calculated as the difference between the stated value and present value of the software license fees and is recognized as interest income over the extended payment period. The total fixed software license fee net of the significant financing component is recognized as revenue at the point in time when the software is transferred to the customer. For those software license arrangements that include customer-specific acceptance provisions, such provisions are generally presumed to be substantive and the Company does not recognize revenue until the earlier of the receipt of a written customer acceptance, objective demonstration that the delivered product meets the customer-specific acceptance criteria or the expiration of the acceptance period. The Company recognizes revenues on such arrangements upon the earlier of receipt of written acceptance or the first production use of the software by the customer. For software license arrangements in which the Company acts as a distributor of another company’s product, and in certain circumstances, modifies or enhances the product, revenues are recorded on a gross basis. These include arrangements in which the Company takes control of the products and is responsible for providing the product or service. For software license arrangements in which the Company acts as a sales agent for another company’s product, revenues are recorded on a net basis. These include arrangements in which the Company does not take control of products and is not responsible for providing the product or service. For software license arrangements in which the Company utilizes a third-party distributor or sales agent, the Company recognizes revenue upon transfer of control of the software license(s) to the third-party distributor or sales agent. The Company’s software license arrangements typically provide the customer with a standard 90-day Software license arrangements typically include an initial post contract customer support (maintenance or “PCS”) term of one year with subsequent renewals for additional years within the initial license period. The Company’s promise to those customers who elect to purchase PCS represents a stand-ready performance obligation that is distinct from the license performance obligation and recognized over the PCS term. The Company also provides various professional services to customers with software licenses. These include project management, software implementation and software modification services. Revenues from arrangements to provide professional services are generally distinct from the other promises in the contract(s) and are recognized as the related services are performed. Consideration payable under these arrangements is either fixed fee or on a time-and-materials The Company estimates the standalone selling price (“SSP”) for maintenance and professional services based on observable standalone sales. The Company applies the residual approach to estimate the SSP for software licenses. Refer to Note 10, Segment Information, Significant Judgments The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information. The Company also applies judgment in determining the term of an arrangement when early termination rights are provided to the customer. The Company’s software license arrangements with its customers often include multiple promises to transfer licensed software products and services. Determining whether the products and/or services are distinct performance obligations that should be accounted for separately may require significant judgment. The Company’s SaaS and PaaS arrangements may include variable consideration in the form of usage-based fees. If the arrangement that includes variable consideration in the form of usage-based fees does not meet the allocation exception for variable consideration, the Company estimates the amount of variable consideration at the outset of the arrangement using either the expected value or most likely amount method, depending on the specifics of each arrangement. These estimates are constrained to the extent that it is probable that a significant reversal of incremental revenue will not occur and are updated each reporting period as additional information becomes available. Judgment is used in determining: (1) whether the financing component in a software license agreement is significant and, if so, (2) the discount rate used in calculating the significant financing component. The Company assesses the significance of the financing component based on the ratio of license fees paid over time to total license fees. If determined to be significant, the financing component is calculated using a rate that discounts the license fees to the cash selling price. Judgment is also used in assessing whether the extension of payment terms in a software license arrangement results in variable consideration and, if so, the amount to be included in the transaction price. The Company applies the portfolio approach to estimating the amount of variable consideration in these arrangements using the most likely amount method that is based on the Company’s historical collection experience under similar arrangements. Significant judgment is required to determine the SSP for each performance obligation, the amount allocated to each performance obligation and whether it depicts the amount that the Company expects to receive in exchange for the related product and/or service. As the selling prices of the Company’s software licenses are highly variable, the Company estimates SSP of its software licenses using the residual approach when the software license is sold with other services and observable SSPs exist for the other services. The Company uses a range of amounts to estimate SSP for maintenance and services. These ranges are based on standalone sales and vary based on the type of service and geographic region. If the SSP of a performance obligation is not directly observable, the Company will maximize observable inputs to determine its SSP. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an accrued receivable when revenue is recognized prior to invoicing and the Company’s right to consideration only requires the passage of time, or deferred revenue when revenue is recognized subsequent to invoicing. Total receivables represent amounts billed and amounts earned that are to be billed in the future (i.e., accrued receivables). Included in accrued receivables are services and SaaS and PaaS revenues earned in the current period but billed in the following period and amounts due under multi-year software license arrangements with extended payment terms for which the Company has an unconditional right to invoice and receive payment in the future. March 31, December 31, (in thousands) 2018 2017 Billed Receivables $ 175,066 $ 240,137 Allowance for doubtful accounts (4,001 ) (4,799 ) Billed Receivables, net $ 171,065 $ 235,338 Accrued receivables 328,546 27,507 Significant financing component (34,109 ) — Total accrued receivables, net 294,437 27,507 Less current accrued receivables 117,276 27,507 Less current significant financing component (9,972 ) — Total long-term accrued receivables, net $ 187,133 $ — Total receivables, net $ 465,502 $ 262,845 No customer accounted for more than 10% of the Company’s consolidated receivables balance as of March 31, 2018 or December 31, 2017. Deferred revenue includes amounts due or received from customers for software licenses, maintenance, services and/or SaaS and PaaS services in advance of recording the related revenue. Changes in deferred revenue were as follows: Deferred (in thousands) Revenue Balance, January 1, 2018 $ 145,344 Deferral of revenue 56,264 Recognition of deferred revenue (44,589 ) Balance, March 31, 2018 $ 157,019 Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include: (1) Revenue that will be recognized in future periods from capacity overages that are accounted for as a usage-based royalty. (2) SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the ‘right to invoice’ practical expedient. (3) SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the direct allocation method. Revenue allocated to remaining performance obligations was $589.5 million as of March 31, 2018, of which the Company expects to recognize approximately 50% over the next 12 months and the remainder thereafter. During the three-months ended March 31, 2018, the revenue recognized by the Company from performance obligations satisfied in previous periods was not material. Costs to Obtain and Fulfill a Contract The Company accounts for costs to obtain and fulfill its contracts in accordance with ASC 340, Other Assets and Deferred Costs The Company capitalizes certain of its sales commissions that meet the definition of incremental costs of obtaining a contract and for which the amortization period is greater than one year. The costs associated with those sales commissions is capitalized during the period in which the Company becomes obligated to pay the commissions and is amortized over the period in which the related products or services are transferred to the customer. As of March 31, 2018, $0.4 million and $19.1 million of these costs are included in other current and other non-current The Company capitalizes costs incurred to fulfill its contracts that: (1) relate directly to the arrangement, (2) are expected to generate resources that will be used to satisfy the Company’s performance obligation under the arrangement, and (3) are expected to be recovered through revenue generated under the arrangement. Contract fulfillment costs are expensed as the Company transfers the related services to the customer. As of March 31, 2018, $0.2 million and $12.0 million of these costs are included in other current and other non-current Financial Statement Effect of Applying ASC 606 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 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. The financial statement line items affected by adoption of ASC 606 is as follows: March 31, 2018 (in thousands) As Reported Without Effect of Change Higher / (Lower) Assets Receivables, net of allowances $ 278,369 $ 205,165 $ 73,204 Recoverable income taxes 7,673 6,538 1,135 Prepaid expenses 29,961 30,702 (741 ) Other current assets 29,010 28,795 215 Accrued receivables, net 187,133 — 187,133 Deferred income taxes, net 22,109 65,503 (43,394 ) Other noncurrent assets 56,826 38,945 17,881 Liabilities Deferred revenue 111,639 128,304 (16,665 ) Income taxes payable 6,178 6,268 (90 ) Other current liabilities 64,312 64,546 (234 ) Deferred income taxes, net 26,564 7,876 18,688 Stockholders’ equity Total stockholders’ equity 979,022 745,288 233,734 For the Three Months Ended March 31, 2018 (in thousands) As Reported Without application of Effect of Change Higher / (Lower) Revenues Software as a service and platform as a service $ 104,280 $ 105,174 $ (894 ) License 28,046 43,921 (15,875 ) Maintenance 56,659 55,771 888 Services 20,325 20,029 296 Operating expenses Selling and marketing 31,893 30,346 1,547 Other income (expense) Interest income 2,744 179 2,565 Other, net (55 ) (784 ) 729 Income tax provision Income tax benefit (3,952 ) (2,043 ) (1,909 ) The following summarizes the significant changes resulting from the adoption of ASC 606 compared to if the Company had continued to recognize revenues under ASC 985-605, Revenue Recognition: Software Receivables, Deferred Revenue, License Revenue, and Interest Income The change in receivables, deferred revenue, license revenue, and interest income is due to a change in the timing and the amount of recognition for software license revenues under ASC 606. Under ASC 605, the Company recognizes revenue upon delivery provided (i) there is persuasive evidence of an arrangement, (ii) collection of the fee is considered probable, and (iii) the fee is fixed or determinable. 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 fee is deemed not 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. License revenue under ASC 605 includes revenue from software license arrangements with extended payment terms for which the due and payable pattern of recognition was applied. Under ASC 606, license revenue from these software license arrangements is accelerated (i.e. upfront recognition) and adjusted for the effects of the financing component, if significant. The significant financing component in these software license arrangements is recognized as interest income over the extended payment period. As many of these software license arrangements were active as of the date the Company adopted ASC 606, the license fees are included in the Company’s cumulative adjustment to retained earnings. Other Current Assets, Other Noncurrent Assets, and Selling and Marketing Under ASC 606, certain of the Company’s sales commissions meet the definition of incremental costs of obtaining a contract. Accordingly, these costs are capitalized and the expense is recognized as the related goods or services are transferred to the customer. Prior to the adoption of ASC 606, the Company recognized sales commission expenses as they were incurred. Deferred Income Taxes, Net The change in deferred income taxes is primarily due to the deferred tax effects resulting from the adjustment to retained earnings for the cumulative effect of applying ASC 606 to active contracts as of the adoption date. The adoption of ASC 606 had no impact in total on the Company’s cash flows from operations. |
Loss per share | Basic loss per share is computed on the basis of weighted average outstanding common shares. Diluted loss per share is computed on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options and other outstanding dilutive securities. |
Segment Information | The Company reports financial performance based on its segments, ACI On Premise and ACI On Demand, and analyzes Segment Adjusted EBITDA as a measure of segment profitability. The Company’s chief operating decision maker (“CODM”), which is also our Chief Executive Officer, together with other senior management personnel, focus their review of consolidated financial information and the allocation of resources based upon the operating results, including revenues and Segment Adjusted EBITDA, for the segments ACI On Premise and ACI On Demand, separate from the Corporate operations. ACI 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. Segment Adjusted EBITDA is the measure reported to the CODM for purposes of making decisions on allocating resources and assessing the performance of the Company’s segments and, therefore, Segment Adjusted EBITDA is presented in conformity with ASC 280, Segment Reporting. Corporate and other unallocated expenses 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, and other costs that are not considered when management evaluates segment performance. |
Condensed Consolidated Financ20
Condensed Consolidated Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Components of Other Current Assets and Other Current Liabilities | Other Current Assets and Other Current Liabilities (in thousands) March 31, 2018 December 31, Settlement deposits $ 8,905 $ 22,282 Settlement receivables 11,883 30,063 Other 8,222 5,781 Total other current assets $ 29,010 $ 58,126 (in thousands) March 31, 2018 December 31, Settlement payables $ 20,245 $ 48,953 Accrued interest 2,554 7,291 Vendor financed licenses 3,068 1,862 Royalties payable 9,883 9,264 Other 28,562 35,534 Total other current liabilities $ 64,312 $ 102,904 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Total Receivables | Total receivables represent amounts billed and amounts earned that are to be billed in the future (i.e., accrued receivables). Included in accrued receivables are services and SaaS and PaaS revenues earned in the current period but billed in the following period and amounts due under multi-year software license arrangements with extended payment terms for which the Company has an unconditional right to invoice and receive payment in the future. March 31, December 31, (in thousands) 2018 2017 Billed Receivables $ 175,066 $ 240,137 Allowance for doubtful accounts (4,001 ) (4,799 ) Billed Receivables, net $ 171,065 $ 235,338 Accrued receivables 328,546 27,507 Significant financing component (34,109 ) — Total accrued receivables, net 294,437 27,507 Less current accrued receivables 117,276 27,507 Less current significant financing component (9,972 ) — Total long-term accrued receivables, net $ 187,133 $ — Total receivables, net $ 465,502 $ 262,845 |
Changes in Deferred Revenue | Changes in deferred revenue were as follows: Deferred (in thousands) Revenue Balance, January 1, 2018 $ 145,344 Deferral of revenue 56,264 Recognition of deferred revenue (44,589 ) Balance, March 31, 2018 $ 157,019 |
Financial Statement Effect of Applying ASC 606 | The financial statement line items affected by adoption of ASC 606 is as follows: March 31, 2018 (in thousands) As Reported Without Effect of Change Higher / (Lower) Assets Receivables, net of allowances $ 278,369 $ 205,165 $ 73,204 Recoverable income taxes 7,673 6,538 1,135 Prepaid expenses 29,961 30,702 (741 ) Other current assets 29,010 28,795 215 Accrued receivables, net 187,133 — 187,133 Deferred income taxes, net 22,109 65,503 (43,394 ) Other noncurrent assets 56,826 38,945 17,881 Liabilities Deferred revenue 111,639 128,304 (16,665 ) Income taxes payable 6,178 6,268 (90 ) Other current liabilities 64,312 64,546 (234 ) Deferred income taxes, net 26,564 7,876 18,688 Stockholders’ equity Total stockholders’ equity 979,022 745,288 233,734 For the Three Months Ended March 31, 2018 (in thousands) As Reported Without application of Effect of Change Higher / (Lower) Revenues Software as a service and platform as a service $ 104,280 $ 105,174 $ (894 ) License 28,046 43,921 (15,875 ) Maintenance 56,659 55,771 888 Services 20,325 20,029 296 Operating expenses Selling and marketing 31,893 30,346 1,547 Other income (expense) Interest income 2,744 179 2,565 Other, net (55 ) (784 ) 729 Income tax provision Income tax benefit (3,952 ) (2,043 ) (1,909 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Maturities on Long-Term Debt Outstanding | Maturities on long-term debt outstanding at March 31, 2018 are as follows: Fiscal year ending December 31, (in thousands) 2018 $ 15,563 2019 31,125 2020 331,125 2021 41,500 2022 269,750 Total $ 689,063 |
Carrying Value of Debt | As of March 31, 2018, and at all times during the period, the Company was in compliance with its financial debt covenants. (in thousands) As of March 31, As of December 31, Term credit facility $ 389,063 $ 394,250 Revolving credit facility — 2,000 6.375% Senior Notes, due August 2020 300,000 300,000 Debt issuance costs (9,823 ) (10,521 ) Total debt 679,240 685,729 Less current portion of term credit facility 23,344 20,750 Less current portion of debt issuance costs (2,965 ) (2,964 ) Total long-term debt $ 658,861 $ 667,943 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Stock Options Issued Pursuant to Stock Incentive Plans | A summary of stock options issued pursuant to the Company’s stock incentive plans is as follows: Number of Weighted- Weighted- Aggregate In-the-Money Outstanding as of December 31, 2017 6,162,717 $ 16.83 Granted 170,455 23.36 Exercised (656,898 ) 13.88 Forfeited (3,255 ) 17.89 Outstanding as of March 31, 2018 5,673,019 $ 17.37 6.74 $ 36,025,874 Exercisable as of March 31, 2018 4,081,780 $ 16.58 6.11 $ 29,135,028 |
Black-Scholes Option-Pricing Model [Member] | |
Estimated Fair Value of Options Granted Pricing Model with Weighted-Average Assumptions | The fair value of options that do not vest based on the achievement of certain market conditions granted during the three months ended March 31, 2018 and 2017 were estimated on the date of grant using the Black-Scholes option-pricing , Three Months Ended Three Months Ended Expected life (years) 5.6 5.6 Interest rate 2.7 % 1.9 % Volatility 26.4 % 29.4 % Dividend yield — — |
LTIP Performance Shares [Member] | |
Summary of Nonvested Performance Share Awards and Changes During Period | A summary of nonvested long-term incentive program performance share awards (“LTIP performance shares”) outstanding as of March 31, 2018 and changes during the period are as follows: Nonvested LTIP Performance Shares Number of Weighted- Nonvested as of December 31, 2017 1,125,035 $ 18.94 Forfeited (8,008 ) 19.57 Nonvested as of March 31, 2018 1,117,027 $ 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: Three Months Ended Three Months Ended Expected life (years) 2.9 2.9 Interest rate 2.4 % 1.5 % Volatility 28.0 % 26.5 % Dividend Yield — — |
TSR Plan [Member] | |
Summary of Nonvested Performance Share Awards and Changes During Period | A summary of nonvested TSRs outstanding as of March 31, 2018 and changes during the period are as follows: Nonvested Total Shareholder Return Awards Number of Weighted- Nonvested as of December 31, 2017 143,649 $ 24.37 Granted 541,214 31.31 Forfeited (1,837 ) 31.31 Nonvested as of March 31, 2018 683,026 $ 29.85 |
Restricted Share Awards (RSAs) [Member] | |
Summary of Nonvested Restricted Share and Changes During Period | A summary of nonvested restricted share awards (“RSAs”) as of March 31, 2018 and changes during the period are as follows: Nonvested Restricted Share Awards Number of Weighted-Average Grant Nonvested as of December 31, 2017 503,237 $ 20.63 Vested (123,427 ) 20.12 Forfeited (10,727 ) 20.12 Nonvested as of March 31, 2018 369,083 $ 20.81 |
Performance-Based Restricted Share Awards [Member] | |
Summary of Nonvested Performance Share Awards and Changes During Period | A summary of nonvested Performance-Based Restricted Share Awards (“PBRSAs”) as of March 31, 2018 and changes during the period are as follows: Nonvested Performance-Based Restricted Share Awards Number of Performance-Based Share Awards Weighted-Average Grant Nonvested as of December 31, 2017 173,636 $ 24.41 Nonvested as of March 31, 2018 173,636 $ 24.41 |
Restricted Share Units [Member] | |
Summary of Nonvested Restricted Share and Changes During Period | A summary of nonvested RSUs as of March 31, 2018 and changes during the period are as follows: Nonvested Restricted Share Units Number of Weighted- Nonvested as of December 31, 2017 — $ — Granted 581,945 23.36 Forfeited (2,461 ) 23.36 Nonvested as of March 31, 2018 579,484 $ 23.36 |
Software and Other Intangible24
Software and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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) March 31, 2018 December 31, 2017 Gross Accumulated Net Balance Gross Accumulated Net Balance Customer relationships $ 308,489 $ (122,164 ) $ 186,325 $ 305,218 $ (116,677 ) $ 188,541 Trademarks and tradenames 16,842 (14,479 ) 2,363 16,646 (13,906 ) 2,740 $ 325,331 $ (136,643 ) $ 188,688 $ 321,864 $ (130,583 ) $ 191,281 |
Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Software and Other Intangible Assets | Based on capitalized software and other intangible assets at March 31, 2018, estimated amortization expense for future fiscal years is as follows: Fiscal Year Ending December 31, Software Other (in thousands) Remainder of 2018 $ 38,406 $ 14,410 2019 42,955 18,777 2020 33,127 17,866 2021 20,461 17,342 2022 8,780 17,184 2023 4,640 16,854 Thereafter 2,284 86,255 Total $ 150,653 $ 188,688 |
Corporate Restructuring and O25
Corporate Restructuring and Other Organizational Changes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 are included in the following table: (in thousands) Facility Balance, December 31, 2017 $ 5,945 Amounts paid during the period (455 ) Foreign currency translation 79 Balance, March 31, 2018 $ 5,569 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Average Share Amounts used to Compute Both Basic and Diluted Earnings (Loss) Per Share | The following table reconciles the average share amounts used to compute both basic and diluted loss per share (in thousands): Three Months Ended March 31, 2018 2017 Weighted average shares outstanding: Basic weighted average shares outstanding 115,642 116,610 Add: Dilutive effect of stock options — — Diluted weighted average shares outstanding 115,642 116,610 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
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 (in thousands): Three Months Ended March 31, 2018 March 31, 2017 Revenue ACI On Premise $ 105,030 $ 131,908 ACI On Demand 104,280 99,554 Total revenue $ 209,310 $ 231,462 Segment Adjusted EBITDA ACI On Premise $ 38,898 $ 68,395 ACI On Demand (4,233 ) (7,007 ) Depreciation and amortization (24,993 ) (25,638 ) Stock-based compensation (6,362 ) (6,297 ) Corporate and unallocated expenses (20,014 ) (25,830 ) Interest, net (6,621 ) (10,054 ) Other, net (55 ) 649 Loss before income taxes $ (23,380 ) $ (5,782 ) Depreciation and amortization ACI On Premise $ 2,975 $ 3,261 ACI On Demand 7,736 8,388 Corporate 14,282 13,989 Total depreciation and amortization $ 24,993 $ 25,638 |
Selected Segment Financial Data, Revenues and Long lived Assets | The following is selected financial data for the Company’s geographical areas and revenues by geographic location and primary solution category for the periods indicated (in thousands): Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 (in thousands) ACI On Premise ACI On Demand Total ACI On Premise ACI On Demand Total Primary Geographic Markets Americas - United States 30,864 88,946 119,810 49,193 85,809 135,002 Americas - Other 16,784 2,319 19,103 14,874 2,252 17,126 EMEA 38,686 12,009 50,695 51,904 11,079 62,983 Asia Pacific 18,696 1,006 19,702 15,937 414 16,351 Total $ 105,030 $ 104,280 $ 209,310 $ 131,908 $ 99,554 $ 231,462 Primary Solution Categories Bill Payments — 66,168 66,168 — 65,246 65,246 Digital Channels/Online 11,363 10,644 22,007 12,488 10,491 22,979 Merchant Payments 5,010 12,371 17,381 6,312 11,359 17,671 Payments Risk Management 10,420 11,798 22,218 5,160 10,308 15,468 Real Time Payments 13,641 450 14,091 13,548 195 13,743 Retail Payments 64,596 2,849 67,445 94,400 1,955 96,355 Total $ 105,030 $ 104,280 $ 209,310 $ 131,908 $ 99,554 $ 231,462 The following is selected financial data for the Company’s long-lived assets by geographic location for the periods indicated (in thousands): (in thousands) March 31, December 31, Long lived assets United States $ 854,156 $ 759,513 Other 719,610 613,556 $ 1,573,766 $ 1,373,069 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Activity within Accumulated Other Comprehensive Loss | Activity within accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017, which consists of foreign currency translation adjustments, were as follows: (in thousands) Accumulated Balance at December 31, 2017 $ (77,356 ) Other comprehensive income 5,659 Balance at March 31, 2018 $ (71,697 ) Accumulated Balance at December 31, 2016 $ (94,100 ) Other comprehensive income 6,051 Balance at March 31, 2017 $ (88,049 ) |
Condensed Consolidated Financ29
Condensed Consolidated Financial Statements - Components of Other Current Assets and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Current Assets and Liabilities [Line Items] | ||
Other | $ 8,222 | $ 5,781 |
Total other current assets | 29,010 | 58,126 |
Settlement payables | 20,245 | 48,953 |
Accrued interest | 2,554 | 7,291 |
Vendor financed licenses | 3,068 | 1,862 |
Royalties payable | 9,883 | 9,264 |
Other | 28,562 | 35,534 |
Total other current liabilities | 64,312 | 102,904 |
Settlement deposits [Member] | ||
Other Current Assets and Liabilities [Line Items] | ||
Other assets settlement | 8,905 | 22,282 |
Settlement receivables [Member] | ||
Other Current Assets and Liabilities [Line Items] | ||
Other assets settlement | $ 11,883 | $ 30,063 |
Condensed Consolidated Financ30
Condensed Consolidated Financial Statements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Amount of off balance sheet settlement funds | $ 216,100 | $ 238,900 |
Goodwill | 909,691 | 909,691 |
Accounting Standards Update 2014-09 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Cumulative effect on retained earnings | 244,000 | |
ACI On Premise [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Goodwill | 725,900 | |
ACI On Demand [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Goodwill | 183,800 | |
Level 2 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Fair value senior note | $ 303,300 | $ 305,700 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue [Line Items] | |
Software licensing arrangements warranty, description | The Company's software license arrangements typically provide the customer with a standard 90-day assurance-type warranty. |
Software licensing arrangements warranty period | 90 days |
Initial post contract customer support period | 1 year |
Percentage of receivables as of March 31, 2018 or December 31, 2017 | No customer accounted for more than 10% of the Company's consolidated receivables balance as of March 31, 2018 or December 31, 2017. |
Revenue allocated to remaining performance obligations | $ 589.5 |
Percentage of revenue allocated to remaining performance obligations to be recognized over the next 12 months | 50.00% |
Capitalized sales commissions minimum amortization period | 1 year |
Selling and Marketing [Member] | |
Revenue [Line Items] | |
Amortization of capitalized sales commissions | $ 2.3 |
Cost of Revenue [Member] | |
Revenue [Line Items] | |
Amortization of capitalized contract costs | 1.2 |
Other Noncurrent Assets [Member] | |
Revenue [Line Items] | |
Capitalized sales commissions | 19.1 |
Capitalized contract costs, noncurrent | 12 |
Other Current Assets [Member] | |
Revenue [Line Items] | |
Capitalized sales commissions | 0.4 |
Capitalized contract costs, current | $ 0.2 |
Revenue - Receivables and Conce
Revenue - Receivables and Concentration of Credit Risk (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract] | ||
Billed Receivables | $ 175,066 | $ 240,137 |
Allowance for doubtful accounts | (4,001) | (4,799) |
Billed Receivables, net | 171,065 | 235,338 |
Accrued receivables | 328,546 | 27,507 |
Significant financing component | (34,109) | |
Total accrued receivables, net | 294,437 | 27,507 |
Less current accrued receivables | 117,276 | 27,507 |
Less current significant financing component | (9,972) | |
Total long-term accrued receivables, net | 187,133 | |
Total receivables, net | $ 465,502 | $ 262,845 |
Revenue - Changes in Deferred R
Revenue - Changes in Deferred Revenue (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue, Beginning Balance | $ 145,344 |
Deferral of revenue | 56,264 |
Recognition of deferred revenue | (44,589) |
Deferred Revenue, Ending Balance | $ 157,019 |
Revenue - Financial Statement E
Revenue - Financial Statement Effect of Applying ASC 606 (Balance Sheet) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Receivables, net of allowances | $ 278,369 | $ 262,845 |
Recoverable income taxes | 7,673 | 7,921 |
Prepaid expenses | 29,961 | 23,219 |
Other current assets | 29,010 | 58,126 |
Accrued receivables, net | 187,133 | |
Deferred income taxes, net | 22,109 | 66,749 |
Other noncurrent assets | 56,826 | 36,483 |
Liabilities | ||
Deferred revenue | 111,639 | 107,543 |
Income taxes payable | 6,178 | 9,898 |
Other current liabilities | 64,312 | 102,904 |
Deferred income taxes, net | 26,564 | 16,910 |
Stockholders' equity | ||
Total stockholders' equity | 979,022 | $ 764,597 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Assets | ||
Receivables, net of allowances | 205,165 | |
Recoverable income taxes | 6,538 | |
Prepaid expenses | 30,702 | |
Other current assets | 28,795 | |
Deferred income taxes, net | 65,503 | |
Other noncurrent assets | 38,945 | |
Liabilities | ||
Deferred revenue | 128,304 | |
Income taxes payable | 6,268 | |
Other current liabilities | 64,546 | |
Deferred income taxes, net | 7,876 | |
Stockholders' equity | ||
Total stockholders' equity | 745,288 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||
Assets | ||
Receivables, net of allowances | 73,204 | |
Recoverable income taxes | 1,135 | |
Prepaid expenses | (741) | |
Other current assets | 215 | |
Accrued receivables, net | 187,133 | |
Deferred income taxes, net | (43,394) | |
Other noncurrent assets | 17,881 | |
Liabilities | ||
Deferred revenue | (16,665) | |
Income taxes payable | (90) | |
Other current liabilities | (234) | |
Deferred income taxes, net | 18,688 | |
Stockholders' equity | ||
Total stockholders' equity | $ 233,734 |
Revenue - Financial Statement35
Revenue - Financial Statement Effect of Applying ASC 606 (Income Statement) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Software as a service and platform as a service | $ 104,280 | $ 99,447 |
License | 28,046 | 59,381 |
Maintenance | 56,659 | 54,471 |
Services | 20,325 | 18,163 |
Operating expenses | ||
Selling and marketing | 31,893 | 27,137 |
Other income (expense) | ||
Interest income | 2,744 | 106 |
Other, net | (55) | 649 |
Income tax provision | ||
Income tax benefit | (3,952) | $ (4,174) |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Revenues | ||
Software as a service and platform as a service | 105,174 | |
License | 43,921 | |
Maintenance | 55,771 | |
Services | 20,029 | |
Operating expenses | ||
Selling and marketing | 30,346 | |
Other income (expense) | ||
Interest income | 179 | |
Other, net | (784) | |
Income tax provision | ||
Income tax benefit | (2,043) | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||
Revenues | ||
Software as a service and platform as a service | (894) | |
License | (15,875) | |
Maintenance | 888 | |
Services | 296 | |
Operating expenses | ||
Selling and marketing | 1,547 | |
Other income (expense) | ||
Interest income | 2,565 | |
Other, net | 729 | |
Income tax provision | ||
Income tax benefit | $ (1,909) |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Feb. 24, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Aug. 20, 2013 |
Debt Instrument [Line Items] | ||||
Proceeds from revolving credit facility | $ 48,000,000 | $ 12,000,000 | ||
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 March 31, 2018 for the Credit Facility was 3.63%. | |||
Credit facility, interest rate margin above federal fund rate | 0.50% | |||
Credit facility, interest rate margin above one-month LIBOR rate | 1.00% | |||
Credit facility, borrowing rate | 3.63% | |||
Credit Facility maturity date | Feb. 24, 2022 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Unused borrowings | $ 500,000,000 | |||
Term Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility amount outstanding | 389,100,000 | |||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes amount outstanding | $ 300,000,000 | $ 300,000,000 | ||
Issue price percentage of senior notes of the principal amount | 100.00% | |||
Percentage of interest rate on notes | 6.375% | |||
Maturity date of senior notes | Aug. 15, 2020 | |||
Credit Agreement [Member] | Minimum [Member] | ||||
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 [Member] | ||||
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 | |||
Parent Company and Domestic Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of capital stock pledged as collateral | 100.00% | |||
Foreign Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of capital stock pledged as collateral | 65.00% |
Debt - Maturities on Long-Term
Debt - Maturities on Long-Term Debt Outstanding (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 15,563 |
2,019 | 31,125 |
2,020 | 331,125 |
2,021 | 41,500 |
2,022 | 269,750 |
Total | $ 689,063 |
Debt - Carrying Value of Debt (
Debt - Carrying Value of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (9,823) | $ (10,521) |
Total debt | 679,240 | 685,729 |
Current portion of long-term debt | 20,379 | 17,786 |
Less current portion of debt issuance costs | (2,965) | (2,964) |
Total long-term debt | 658,861 | 667,943 |
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 | 389,063 | 394,250 |
Current portion of long-term debt | $ 23,344 | 20,750 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 2,000 |
Debt - Carrying Value of Debt39
Debt - Carrying Value of Debt (Parenthetical) (Detail) - 6.375% Senior Notes, due August 2020 [Member] | 3 Months Ended |
Mar. 31, 2018 | |
Debt Instrument [Line Items] | |
Percentage of interest rate on notes | 6.375% |
Maturity date of senior notes | Aug. 15, 2020 |
Stock-Based Compensation Plan40
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued under ESPP | 38,145 | 44,685 |
Incentive plan, weighted-average grant date fair value of stock options granted | $ 7.03 | $ 6.24 |
Incentive plan, total intrinsic value of stock options exercised | $ 7,200,000 | $ 4,600,000 |
Expected dividend yield | 0.00% | |
Dividend paid | $ 0 | |
Stock-based compensation expenses | $ 6,362,000 | 6,297,000 |
Stock-based compensation expenses tax benefits | $ 1,000,000 | $ 2,200,000 |
Employee Stock Purchase Plan 2017 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock reserved for issuance | 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 | |
Employee participating annual base compensation designated for purchase of common stock, percent | 10.00% | |
Price of common stock purchased under ESPP, percent | 85.00% | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | $ 7,600,000 | |
Unrecognized compensation costs, weighted-average recognition periods | 1 year 2 months 12 days | |
Restricted Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted share awards, vesting increments on the anniversary dates of grants | 33.00% | |
Awards granted requisite service period | 3 years | |
Unrecognized compensation costs | $ 13,100,000 | |
Unrecognized compensation costs, weighted-average recognition periods | 2 years 10 months 24 days | |
Restricted Share Awards (RSAs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock based compensation awards, shares vested | 123,427 | |
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 40,335 | |
Unrecognized compensation costs | $ 5,500,000 | |
Unrecognized compensation costs, weighted-average recognition periods | 1 year 9 months 18 days | |
Performance-Based Restricted Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | $ 300,000 | |
Unrecognized compensation costs, weighted-average recognition periods | 2 months 12 days | |
LTIP Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | $ 9,800,000 | |
Unrecognized compensation costs, weighted-average recognition periods | 1 year 8 months 12 days | |
Total Shareholder Return [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation awards, award payout range, minimum | 0.00% | |
Stock based compensation awards, award payout range, maximum | 200.00% | |
Unrecognized compensation costs | $ 18,500,000 | |
Unrecognized compensation costs, weighted-average recognition periods | 2 years 9 months 18 days |
Stock-Based Compensation Plan41
Stock-Based Compensation Plans - Summary of Stock Options Issued Pursuant to Stock Incentive Plans (Detail) | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, Beginning Balance | shares | 6,162,717 |
Granted | shares | 170,455 |
Exercised | shares | (656,898) |
Forfeited | shares | (3,255) |
Outstanding, Ending Balance | shares | 5,673,019 |
Number of Shares Exercisable, Ending Balance | shares | 4,081,780 |
Weighted-Average Exercise Price | |
Beginning Balance | $ / shares | $ 16.83 |
Granted | $ / shares | 23.36 |
Exercised | $ / shares | 13.88 |
Forfeited | $ / shares | 17.89 |
Ending Balance | $ / shares | 17.37 |
Weighted-Average Exercise Price Exercisable, Ending Balance | $ / shares | $ 16.58 |
Weighted-Average Remaining Contractual Term (Years) | |
Weighted Average Remaining Contractual Term (Years), Outstanding as of end of period | 6 years 8 months 26 days |
Weighted-Average Remaining Contractual Term (Years), Exercisable as of end of period | 6 years 1 month 9 days |
Aggregate Intrinsic Value of In-the-Money Options | |
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period | $ | $ 36,025,874 |
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period | $ | $ 29,135,028 |
Stock-Based Compensation Plan42
Stock-Based Compensation Plans - Estimated Fair Value of Options Granted using Black-Scholes Option-Pricing Model with Weighted-Average Assumptions (Detail) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
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 7 months 6 days |
Interest rate | 2.70% | 1.90% |
Volatility | 26.40% | 29.40% |
Dividend yield | 0.00% | 0.00% |
Stock-Based Compensation Plan43
Stock-Based Compensation Plans - Summary of Nonvested LTIP Performance Based Share Awards and Changes During Period (Detail) - LTIP Performance Shares [Member] | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Number of Shares at Expected Attainment | |
Beginning Balance | shares | 1,125,035 |
Forfeited | shares | (8,008) |
Ending Balance | shares | 1,117,027 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 18.94 |
Forfeited | $ / shares | 19.57 |
Ending Balance | $ / shares | $ 18.94 |
Stock-Based Compensation Plan44
Stock-Based Compensation Plans - Summary of Nonvested Restricted Share Awards and Changes During Period (Detail) - Restricted Share Awards (RSAs) [Member] | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Nonvested Restricted Share Awards | |
Beginning Balance | shares | 503,237 |
Vested | shares | (123,427) |
Forfeited | shares | (10,727) |
Ending Balance | shares | 369,083 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 20.63 |
Vested | $ / shares | 20.12 |
Forfeited | $ / shares | 20.12 |
Ending Balance | $ / shares | $ 20.81 |
Stock-Based Compensation Plan45
Stock-Based Compensation Plans - Summary of Nonvested Performance Based Share Awards and Changes During Period (Detail) - Performance-Based Restricted Share Awards [Member] | Mar. 31, 2018$ / sharesshares |
Nonvested Restricted Share Awards | |
Beginning Balance | shares | 173,636 |
Ending Balance | shares | 173,636 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 24.41 |
Ending Balance | $ / shares | $ 24.41 |
Stock-Based Compensation Plan46
Stock-Based Compensation Plans - Estimated Fair Value of Options Granted Total Shareholder Return (TSRs) using Monte Carlo Simulation Model with Weighted-Average Assumptions (Detail) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 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 24 days | 2 years 10 months 24 days |
Interest rate | 2.40% | 1.50% |
Volatility | 28.00% | 26.50% |
Dividend yield | 0.00% | 0.00% |
Stock-Based Compensation Plan47
Stock-Based Compensation Plans - Summary of Nonvested Total Shareholder Return (TSRs) Outstanding and Changes During Period (Detail) - Total Shareholder Return [Member] | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Number of Shares at Expected Attainment | |
Beginning Balance | shares | 143,649 |
Granted | shares | 541,214 |
Forfeited | shares | (1,837) |
Ending Balance | shares | 683,026 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 24.37 |
Granted | $ / shares | 31.31 |
Forfeited | $ / shares | 31.31 |
Ending Balance | $ / shares | $ 29.85 |
Stock-Based Compensation Plan48
Stock-Based Compensation Plans - Summary of Nonvested Restricted Share Unit and Changes During Period (Detail) - Restricted Share Units [Member] | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Nonvested Restricted Share Awards | |
Beginning Balance | shares | 0 |
Granted | shares | 581,945 |
Forfeited | shares | (2,461) |
Ending Balance | shares | 579,484 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 0 |
Granted | $ / shares | 23.36 |
Forfeited | $ / shares | 23.36 |
Ending Balance | $ / shares | $ 23.36 |
Software and Other Intangible49
Software and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | $ 150,653 | $ 155,386 | |
Software, accumulated amortization | 236,800 | 230,700 | |
Other intangible assets amortization expense | 4,900 | $ 4,800 | |
Software Marketed for External Sale [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Software, net | 37,900 | 40,900 | |
Software, amortization expense | $ 3,600 | 3,300 | |
Software Marketed for External Sale [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Software Marketed for External Sale [Member] | Maximum [Member] | |||
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 | $ 112,800 | $ 114,500 | |
Software, amortization expense | $ 10,500 | $ 11,300 | |
Software Acquired or Developed for Internal Use [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Software Acquired or Developed for Internal Use [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 10 years |
Software and Other Intangible50
Software and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 325,331 | $ 321,864 |
Accumulated Amortization | (136,643) | (130,583) |
Net Balance | 188,688 | 191,281 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 308,489 | 305,218 |
Accumulated Amortization | (122,164) | (116,677) |
Net Balance | 186,325 | 188,541 |
Trademarks and Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,842 | 16,646 |
Accumulated Amortization | (14,479) | (13,906) |
Net Balance | $ 2,363 | $ 2,740 |
Software and Other Intangible51
Software and Other Intangible Assets - Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Balance | $ 188,688 | $ 191,281 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2018 | 38,406 | |
2,019 | 42,955 | |
2,020 | 33,127 | |
2,021 | 20,461 | |
2,022 | 8,780 | |
2,023 | 4,640 | |
Thereafter | 2,284 | |
Net Balance | 150,653 | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2018 | 14,410 | |
2,019 | 18,777 | |
2,020 | 17,866 | |
2,021 | 17,342 | |
2,022 | 17,184 | |
2,023 | 16,854 | |
Thereafter | 86,255 | |
Net Balance | $ 188,688 |
Corporate Restructuring and O52
Corporate Restructuring and Other Organizational Changes - Components of Corporate Restructuring and Other Reorganization Activities from Recent Acquisitions (Detail) - Facility Closures [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | $ 5,945 |
Amounts paid during the period | (455) |
Foreign currency translation | 79 |
Ending balance | $ 5,569 |
Corporate Restructuring and O53
Corporate Restructuring and Other Organizational Changes - Additional Information (Detail) - Facility Closures [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 5,569 | $ 5,945 |
Other Current Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,800 | |
Other Noncurrent Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 3,800 |
Common Stock and Treasury Sto54
Common Stock and Treasury Stock - Additional Information (Detail) - USD ($) | 3 Months Ended | 67 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | |
Stock authorized to purchase under stock repurchase program | $ 200,000,000 | ||
Repurchase of common stock, shares | 1,346,427 | 43,129,393 | |
Repurchase of common stock, value | $ 31,100,000 | $ 524,400,000 | |
Maximum [Member] | |||
Remaining value of shares authorized for purchase under the stock repurchase program | $ 200,000,000 | $ 200,000,000 |
Loss Per Share - Reconciliation
Loss Per Share - Reconciliation of Average Share Amounts used to Compute Both Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted average shares outstanding: | ||
Basic weighted average shares outstanding | 115,642 | 116,610 |
Add: Dilutive effect of stock options | 0 | 0 |
Diluted weighted average shares outstanding | 115,642 | 116,610 |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Detail) - shares | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Options to purchase shares, restricted share awards, and contingently issuable shares excluded from diluted net loss per share computation | 8,600,000 | 10,500,000 | |
Common stock outstanding | 116,394,285 | 117,096,731 |
Other, net - Additional Informa
Other, net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | ||
Foreign currency transaction gains (losses) | $ (0.1) | $ 0.6 |
Selected Segment Financial Data
Selected Segment Financial Data, Revenues and Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 209,310 | $ 231,462 |
Stock-based compensation | (6,362) | (6,297) |
Corporate and unallocated expenses | (20,014) | (25,830) |
Interest, net | (6,621) | (10,054) |
Other, net | (55) | 649 |
Loss before income taxes | (23,380) | (5,782) |
Depreciation and amortization expense | 24,993 | 25,638 |
ACI On Premise [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 105,030 | 131,908 |
ACI On Demand [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 104,280 | 99,554 |
Operating Segments [Member] | ACI On Premise [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 105,030 | 131,908 |
Segment Adjusted EBITDA | 38,898 | 68,395 |
Depreciation and amortization expense | 2,975 | 3,261 |
Operating Segments [Member] | ACI On Demand [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 104,280 | 99,554 |
Segment Adjusted EBITDA | (4,233) | (7,007) |
Depreciation and amortization expense | 7,736 | 8,388 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization expense | $ 14,282 | $ 13,989 |
Selected Segment Financial Da59
Selected Segment Financial Data, Revenues and Long lived Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 209,310 | $ 231,462 | |
Long lived assets | |||
Long lived assets | 1,573,766 | $ 1,373,069 | |
Bill Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 66,168 | 65,246 | |
Digital Channels/Online [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 22,007 | 22,979 | |
Merchant Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 17,381 | 17,671 | |
Payments Risk Management [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 22,218 | 15,468 | |
Real Time Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 14,091 | 13,743 | |
Retail Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 67,445 | 96,355 | |
ACI On Premise [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 105,030 | 131,908 | |
ACI On Premise [Member] | Digital Channels/Online [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 11,363 | 12,488 | |
ACI On Premise [Member] | Merchant Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 5,010 | 6,312 | |
ACI On Premise [Member] | Payments Risk Management [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 10,420 | 5,160 | |
ACI On Premise [Member] | Real Time Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 13,641 | 13,548 | |
ACI On Premise [Member] | Retail Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 64,596 | 94,400 | |
ACI On Demand [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 104,280 | 99,554 | |
ACI On Demand [Member] | Bill Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 66,168 | 65,246 | |
ACI On Demand [Member] | Digital Channels/Online [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 10,644 | 10,491 | |
ACI On Demand [Member] | Merchant Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 12,371 | 11,359 | |
ACI On Demand [Member] | Payments Risk Management [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 11,798 | 10,308 | |
ACI On Demand [Member] | Real Time Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 450 | 195 | |
ACI On Demand [Member] | Retail Payments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 2,849 | 1,955 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 119,810 | 135,002 | |
Long lived assets | |||
Long lived assets | 854,156 | 759,513 | |
United States [Member] | ACI On Premise [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 30,864 | 49,193 | |
United States [Member] | ACI On Demand [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 88,946 | 85,809 | |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 19,103 | 17,126 | |
Long lived assets | |||
Long lived assets | 719,610 | $ 613,556 | |
Other [Member] | ACI On Premise [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 16,784 | 14,874 | |
Other [Member] | ACI On Demand [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 2,319 | 2,252 | |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 50,695 | 62,983 | |
EMEA [Member] | ACI On Premise [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 38,686 | 51,904 | |
EMEA [Member] | ACI On Demand [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 12,009 | 11,079 | |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 19,702 | 16,351 | |
Asia Pacific [Member] | ACI On Premise [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 18,696 | 15,937 | |
Asia Pacific [Member] | ACI On Demand [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 1,006 | $ 414 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Geographic Concentration Risk [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of revenues during the years ended March 31, 2018, and 2017 | No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the three months ended March 31, 2018 and 2017. |
Customer Concentration Risk [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of revenues during the years ended March 31, 2018, and 2017 | No single customer accounted for more than 10% of the Company's consolidated revenues during the three months ended March 31, 2018 and 2017. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Provisional tax expense recognized | $ 35.9 | ||
Adjustment to estimate related to executive compensation, tax benefit | $ 1.7 | ||
Tax expense for current impact of GILTI provisions | $ 1.3 | ||
Effective tax rate, percentage | 17.00% | 72.00% | |
Earnings (losses) of foreign entities | $ (1.8) | $ 8.7 | |
Unrecognized tax benefit for uncertain tax positions | 27.5 | 27.2 | |
Accrued interest and penalties related to income tax liabilities | 1.2 | $ 1.2 | |
Decrease in unrecognized tax benefits due to expiration of statutes of limitations and settlement of various audits | $ 0.1 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Loss - Activity within Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 764,597 | |
Other comprehensive income | 5,659 | $ 6,051 |
Ending balance | 979,022 | |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (77,356) | (94,100) |
Ending balance | $ (71,697) | $ (88,049) |