Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 | 115,979,645 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 76,342 | $ 69,710 |
Receivables, net of allowances of $3,598 and $4,799, respectively | 279,641 | 262,845 |
Recoverable income taxes | 8,233 | 7,921 |
Prepaid expenses | 25,875 | 23,219 |
Other current assets | 23,244 | 58,126 |
Total current assets | 413,335 | 421,821 |
Noncurrent assets | ||
Accrued receivables, net | 181,832 | |
Property and equipment, net | 75,437 | 80,228 |
Software, net | 147,316 | 155,386 |
Goodwill | 909,691 | 909,691 |
Intangible assets, net | 174,057 | 191,281 |
Deferred income taxes, net | 28,179 | 66,749 |
Other noncurrent assets | 54,477 | 36,483 |
TOTAL ASSETS | 1,984,324 | 1,861,639 |
Current liabilities | ||
Accounts payable | 27,381 | 34,718 |
Employee compensation | 48,142 | 48,933 |
Current portion of long-term debt | 18,765 | 17,786 |
Deferred revenue | 93,668 | 107,543 |
Income taxes payable | 1,600 | 9,898 |
Other current liabilities | 60,075 | 102,904 |
Total current liabilities | 249,631 | 321,782 |
Noncurrent liabilities | ||
Deferred revenue | 48,789 | 51,967 |
Long-term debt | 656,159 | 667,943 |
Deferred income taxes, net | 26,372 | 16,910 |
Other noncurrent liabilities | 40,435 | 38,440 |
Total liabilities | 1,021,386 | 1,097,042 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at September 30, 2018 and December 31, 2017 | ||
Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 shares issued at September 30, 2018 and December 31, 2017 | 702 | 702 |
Additional paid-in capital | 632,547 | 610,345 |
Retained earnings | 776,078 | 550,866 |
Treasury stock, at cost, 24,543,359 and 23,428,324 shares at September 30, 2018 and December 31, 2017, respectively | (357,923) | (319,960) |
Accumulated other comprehensive loss | (88,466) | (77,356) |
Total stockholders' equity | 962,938 | 764,597 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,984,324 | $ 1,861,639 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 3,598 | $ 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 | 24,543,359 | 23,428,324 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Revenues | |||||
Total revenues | $ 245,525 | $ 225,735 | $ 689,830 | $ 697,796 | |
Operating expenses | |||||
Cost of revenue | [1] | 102,473 | 107,393 | 326,070 | 336,293 |
Research and development | 36,008 | 33,935 | 110,661 | 106,189 | |
Selling and marketing | 28,252 | 25,236 | 93,305 | 81,190 | |
General and administrative | 29,537 | 25,302 | 87,023 | 130,332 | |
Depreciation and amortization | 20,896 | 22,446 | 63,274 | 67,189 | |
Total operating expenses | 217,166 | 214,312 | 680,333 | 721,193 | |
Operating income (loss) | 28,359 | 11,423 | 9,497 | (23,397) | |
Other income (expense) | |||||
Interest expense | (12,573) | (9,374) | (31,655) | (30,198) | |
Interest income | 2,763 | 165 | 8,249 | 421 | |
Other, net | (1,304) | (1,059) | (3,036) | (2,176) | |
Total other income (expense) | (11,114) | (10,268) | (26,442) | (31,953) | |
Income (loss) before income taxes | 17,245 | 1,155 | (16,945) | (55,350) | |
Income tax expense (benefit) | 2,012 | (2,233) | 1,824 | (27,321) | |
Net income (loss) | $ 15,233 | $ 3,388 | $ (18,769) | $ (28,029) | |
Earnings (loss) per common share | |||||
Basic | $ 0.13 | $ 0.03 | $ (0.16) | $ (0.24) | |
Diluted | $ 0.13 | $ 0.03 | $ (0.16) | $ (0.24) | |
Weighted average common shares outstanding | |||||
Basic | 115,889 | 118,254 | 115,615 | 117,096 | |
Diluted | 117,492 | 119,743 | 115,615 | 117,096 | |
Software as a service and platform as a service [Member] | |||||
Revenues | |||||
Total revenues | $ 104,519 | $ 99,761 | $ 322,399 | $ 312,677 | |
License [Member] | |||||
Revenues | |||||
Total revenues | 68,964 | 50,017 | 142,565 | 163,578 | |
Maintenance [Member] | |||||
Revenues | |||||
Total revenues | 54,373 | 56,349 | 166,080 | 166,829 | |
Services [Member] | |||||
Revenues | |||||
Total revenues | $ 17,669 | $ 19,608 | $ 58,786 | $ 54,712 | |
[1] | The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 15,233 | $ 3,388 | $ (18,769) | $ (28,029) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (3,862) | (594) | (11,110) | 14,526 |
Total other comprehensive income (loss) | (3,862) | (594) | (11,110) | 14,526 |
Comprehensive income (loss) | $ 11,371 | $ 2,794 | $ (29,879) | $ (13,503) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (18,769) | $ (28,029) |
Adjustments to reconcile net loss to net cash flows from operating activities: | ||
Depreciation | 17,896 | 18,658 |
Amortization | 54,993 | 58,114 |
Amortization of deferred debt issuance costs | 3,881 | 3,537 |
Deferred income taxes | (7,139) | (37,707) |
Stock-based compensation expense | 20,642 | 22,724 |
Other | 1,432 | 1,094 |
Changes in operating assets and liabilities | ||
Receivables | 58,443 | 80,398 |
Accounts payable | (4,217) | (11,610) |
Accrued employee compensation | 92 | (1,056) |
Current income taxes | (10,429) | (10,161) |
Deferred revenue | (47) | (1,248) |
Other current and noncurrent assets and liabilities | (16,316) | (9,642) |
Net cash flows from operating activities | 100,462 | 85,072 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (16,434) | (18,566) |
Purchases of software and distribution rights | (21,876) | (21,328) |
Other | (1,467) | |
Net cash flows from investing activities | (39,777) | (39,894) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 2,326 | 2,185 |
Proceeds from exercises of stock options | 18,405 | 10,284 |
Repurchase of restricted stock for tax withholdings | (2,588) | (5,311) |
Repurchases of common stock | (54,527) | |
Proceeds from senior notes | 400,000 | |
Redemption of senior notes | (300,000) | |
Proceeds from revolving credit facility | 109,000 | 42,000 |
Repayment of revolving credit facility | (111,000) | (126,000) |
Proceeds from term portion of credit agreement | 415,000 | |
Repayment of term portion of credit agreement | (105,332) | (380,852) |
Payment of debt issuance costs | (7,253) | (5,340) |
Payments on other debt and capital leases | (2,332) | (9,286) |
Net cash flows from financing activities | (53,301) | (57,320) |
Effect of exchange rate fluctuations on cash | (752) | 4,319 |
Net increase (decrease) in cash and cash equivalents | 6,632 | (7,823) |
Cash and cash equivalents, beginning of period | 69,710 | 75,753 |
Cash and cash equivalents, end of period | 76,342 | 67,930 |
Supplemental cash flow information | ||
Income taxes paid | 22,439 | 24,693 |
Interest paid | $ 31,914 | $ 31,762 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 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) September 30, December 31, Settlement deposits $ 5,477 $ 22,282 Settlement receivables 11,462 30,063 Other 6,305 5,781 Total other current assets $ 23,244 $ 58,126 (in thousands) September 30, December 31, Settlement payables $ 16,221 $ 48,953 Accrued interest 2,726 7,291 Vendor financed licenses 5,973 1,862 Royalties payable 7,148 9,264 Other 28,007 35,534 Total other current liabilities $ 60,075 $ 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 September 30, 2018 and December 31, 2017 were $185.4 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 2026 Senior Notes was $407.1 million at September 30, 2018. The fair value of the Company’s 2020 Senior Notes was $305.7 million at December 31, 2017. 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 the 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, 2016-16 2016-16 In August 2018, the FASB issued ASU 2018-05, Intangibles—Goodwill and Other–Internal-Use 2018-05”). 2018-05 350-40, Intangibles – Goodwill and Other — Internal-Use 350-40”), 2018-05 Recently Issued Accounting Standards Not Yet Effective In February 2016, the FASB issued ASU 2016-02, Leases The Company has established a cross-functional project team to assess implementing changes to its systems, processes, and controls, in conjunction with a comprehensive review of existing lease agreements. The Company expects the adoption of ASC 842 will have a material impact on its condensed consolidated balance sheet as its rights and obligations from its existing operating leases will be recognized on the balance sheet as assets and liabilities. As of September 30, 2018, the Company’s undiscounted minimum commitments under noncancelable operating leases was approximately $79.4 million. The Company does not expect the adoption of ASC 842 to have a material impact on its results of operations or statement of cash flows. 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 | 9 Months Ended |
Sep. 30, 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. September 30, December 31, (in thousands) 2018 2017 Billed Receivables $ 172,395 $ 240,137 Allowance for doubtful accounts (3,598 ) (4,799 ) Billed Receivables, net $ 168,797 $ 235,338 Accrued receivables 324,019 27,507 Significant financing component (31,343 ) — Total accrued receivables, net 292,676 27,507 Less current accrued receivables 120,532 27,507 Less current significant financing component (9,688 ) — Total long-term accrued receivables, net $ 181,832 $ — Total receivables, net $ 461,473 $ 262,845 No customer accounted for more than 10% of the Company’s consolidated receivables balance as of September 30, 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 145,573 Recognition of deferred revenue (144,935 ) Foreign currency translation (3,525 ) Balance, September 30, 2018 $ 142,457 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 $599.9 million as of September 30, 2018, of which the Company expects to recognize approximately 48% over the next 12 months and the remainder thereafter. During the three and nine-month periods ended September 30, 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 September 30, 2018, $0.6 million and $15.4 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 September 30, 2018, $0.1 million and $12.6 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 are as follows: September 30, 2018 (in thousands) As Reported Without Effect of Change Higher / (Lower) Assets Receivables, net of allowances $ 279,641 $ 202,829 $ 76,812 Recoverable income taxes 8,233 6,711 1,522 Prepaid expenses 25,875 26,616 (741 ) Other current assets 23,244 22,844 400 Accrued receivables, net 181,832 — 181,832 Deferred income taxes, net 28,179 67,261 (39,082 ) Other noncurrent assets 54,477 40,275 14,202 Liabilities Deferred revenue 93,668 108,162 (14,494 ) Income taxes payable 1,600 153 1,447 Other current liabilities 60,075 60,310 (235 ) Deferred income taxes, net 26,372 6,161 20,211 Stockholders’ equity Total stockholders’ equity 962,938 734,925 228,013 For the Three Months Ended September 30, 2018 (in thousands) As Reported Without application of ASC 606 Effect of Change Higher / (Lower) Revenues Software as a service and platform as a service $ 104,519 $ 103,764 $ 755 License 68,964 69,052 (88 ) Maintenance 54,373 54,659 (286 ) Services 17,669 18,184 (515 ) Operating expenses Selling and marketing 28,252 26,397 1,855 Other income (expense) Interest income 2,763 230 2,533 Other, net (1,304 ) (1,155 ) (149 ) Income tax provision Income tax expense (benefit) 2,012 2,804 (792 ) For the Nine Months Ended September 30, 2018 (in thousands) As Reported Without application of Effect of Change Revenues Software as a service and platform as a service $ 322,399 $ 321,897 $ 502 License 142,565 163,788 (21,223 ) Maintenance 166,080 166,673 (593 ) Services 58,786 58,938 (152 ) Operating expenses Selling and marketing 93,305 88,667 4,638 Other income (expense) Interest income 8,249 601 7,648 Other, net (3,036 ) (2,495 ) (541 ) Income tax provision Income tax expense (benefit) 1,824 5,371 (3,547 ) 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 recognized 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 and revenue from renewals of software license arrangements in the period during which the renewal is signed. Under ASC 606, license revenue from these software license arrangements with extended payment terms 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. Revenue for license renewals is recognized when the customer can begin to use and benefit from the license, which is generally at the commencement of the license renewal period. 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 | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 3. Debt As of September 30, 2018, the Company had $288.9 million and $400.0 million outstanding under its 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. 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 21, 2018, the Company completed a $400.0 million offering of 5.750% Senior Notes due 2026 (the “2026 Notes”) at an issue price of 100% of the principal amount, in a private placement for resale to qualified institutional buyers. The 2026 Notes bear interest at a rate of 5.750% per year, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2019. Interest will accrue from August 21, 2018. The 2026 Notes will mature on August 15, 2026. In connection with the issuance of the 2026 Notes, the Company incurred and paid debt issuance costs of $7.3 million as of September 30, 2018. The Company used the net proceeds of the offering described above to redeem in full the Company’s outstanding 6.375% Senior Notes due 2020 (the “2020 Notes”), including accrued interest, and repaid a portion of the outstanding amount under the Term Credit Facility. Maturities on long-term debt outstanding at September 30, 2018 are as follows: Fiscal year ending December 31, (in thousands) 2018 $ 3,958 2019 23,747 2020 23,747 2021 31,662 2022 205,803 Thereafter 400,000 Total $ 688,917 The Credit Agreement and 2026 Notes also contain certain customary mandatory prepayment provisions. If certain events, as specified in the Credit Agreement or 2026 Notes agreement, shall occur, the Company may be required to repay all or a portion of the amounts outstanding under the Credit Facility or 2026 Notes. The Credit Facility will mature on February 24, 2022 and the 2026 Notes will mature on August 15, 2026. The Revolving Credit Facility and 2026 Notes do not amortize and the Term Credit Facility does amortize, with principal payable in consecutive quarterly installments. The Credit Agreement and 2026 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 2026 Notes agreement, shall occur and be continuing, the Company may be required to repay all amounts outstanding under the Credit Facility and 2026 Notes. As of September 30, 2018, and at all times during the period, the Company was in compliance with its financial debt covenants. (in thousands) As of September 30, As of December 31, Term credit facility $ 288,917 $ 394,250 Revolving credit facility — 2,000 5.750% Senior Notes, due August 2026 400,000 — 6.375% Senior Notes, due August 2020 — 300,000 Debt issuance costs (13,993 ) (10,521 ) Total debt 674,924 685,729 Less current portion of term credit facility 21,768 20,750 Less current portion of debt issuance costs (3,003 ) (2,964 ) Total long-term debt $ 656,159 $ 667,943 Other During the nine months ended September 30, 2018, the Company financed certain multi-year license agreements for internally-used software for $11.9 million with annual payments through June 2023. As of September 30, 2018, $11.6 million is outstanding, of which $4.7 million and $6.9 million is included in other current liabilities and other noncurrent liabilities, respectively, in the accompanying condensed consolidated balance sheet. The $11.6 million has been treated as a non-cash |
Stock-BasedCompensation Plans
Stock-BasedCompensation Plans | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-BasedCompensation 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 nine months ended September 30, 2018 and 2017, totaled 112,549 and 121,765, 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 Intrinsic Value of In-the- Money Options Outstanding as of December 31, 2017 6,162,717 $ 16.83 Granted 170,455 23.36 Exercised (1,262,994 ) 14.57 Forfeited (81,881 ) 18.62 Outstanding as of September 30, 2018 4,988,297 $ 17.60 6.30 $ 52,585,398 Exercisable as of September 30, 2018 3,533,425 $ 16.84 5.64 $ 39,930,860 The weighted-average grant date fair value of stock options granted during the nine months ended September 30, 2018 and 2017 was $7.03 and $6.24, respectively. The Company issued treasury shares for the exercise of stock options during the nine months ended September 30, 2018 and 2017. The total intrinsic value of stock options exercised during the nine months ended September 30, 2018 and 2017 was $13.6 million and $6.6 million, respectively. The fair value of options that do not vest based on the achievement of certain market conditions granted during the nine months ended September 30, 2018 and 2017 were estimated on the date of grant using the Black-Scholes option-pricing , Nine Months Ended Nine Months Ended September 30, 2018 September 30, 2017 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 not paid 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 September 30, 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 (89,582 ) 19.24 Nonvested as of September 30, 2018 1,035,453 $ 18.92 Restricted Share Awards A summary of nonvested restricted share awards (“RSAs”) as of September 30, 2018, and changes during the period are as follows: Nonvested Restricted Share Awards Number of Share Awards Weighted-Average Grant Nonvested as of December 31, 2017 503,237 $ 20.63 Vested (231,473 ) 21.20 Forfeited (47,411 ) 19.88 Nonvested as of September 30, 2018 224,353 $ 20.18 During the nine months ended September 30, 2018, a total of 231,473 RSA shares vested. The Company withheld 41,973 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 September 30, 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 Vested (173,636 ) 24.41 Nonvested as of September 30, 2018 — $ — During the nine months ended September 30, 2018, a total of 173,636 PBRSA shares vested. The Company withheld 64,699 of those shares to pay the employees’ portion of the minimum payroll withholding taxes. Total Shareholder Return Awards During the nine months ended September 30, 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: Nine Months Ended Nine Months Ended September 30, 2018 September 30, 2017 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 September 30, 2018, and changes during the period are as follows: Nonvested Total Shareholder Return Awards Number of Weighted- Average Nonvested as of December 31, 2017 143,649 $ 24.37 Granted 541,214 31.31 Forfeited (33,970 ) 29.90 Nonvested as of September 30, 2018 650,893 $ 29.85 Restricted Share Units During the nine months ended September 30, 2018, the Company granted restricted share units (“RSUs”) awards, pursuant to the 2016 Equity and Performance Incentive Plan. The awards generally 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 September 30, 2018, and changes during the period are as follows: Nonvested Restricted Share Units Number of Weighted- Nonvested as of December 31, 2017 — $ — Granted 714,123 23.81 Vested (10,000 ) 25.72 Forfeited (38,739 ) 23.36 Nonvested as of September 30, 2018 665,384 $ 23.81 During the nine months ended September 30, 2018, a total of 10,000 RSU shares vested. As of September 30, 2018, there were unrecognized compensation costs of $14.3 million related to the TSRs, $12.6 million related to RSUs, $5.8 million related to the LTIP performance shares, $3.7 million related to nonvested stock options, and $3.2 million related to the nonvested RSAs, which the Company expects to recognize over weighted-average periods of 2.3 years, 2.3 years, 1.3 years, 0.9 years, and 1.4 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 | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Software and Other Intangible Assets | 5. Software and Other Intangible Assets At September 30, 2018, software net book value totaling $147.3 million, net of $250.0 million of accumulated amortization, includes the net book value of software marketed for external sale of $30.9 million. The remaining software net book value of $116.4 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 September 30, 2018 and 2017, totaled $2.6 million and $3.1 million, respectively. Software for resale amortization expense recorded in the nine months ended September 30, 2018 and 2017, totaled $9.6 million. 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 in the three months ended September 30, 2018 and 2017, totaled $10.2 million and $11.5 million, respectively. Amortization of software for internal use in the nine months ended September 30, 2018 and 2017, totaled $31.0 million and $34.1 million, respectively. These software amortization expense amounts are 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) September 30, 2018 December 31, 2017 Gross Accumulated Net Balance Gross Accumulated Net Balance Customer relationships $ 300,782 $ (128,367 ) $ 172,415 $ 305,218 $ (116,677 ) $ 188,541 Trademarks and tradenames 16,450 (14,808 ) 1,642 16,646 (13,906 ) 2,740 $ 317,232 $ (143,175 ) $ 174,057 $ 321,864 $ (130,583 ) $ 191,281 Other intangible assets amortization expense for the three months ended September 30, 2018 and 2017, totaled $4.7 million and $4.9 million, respectively. Other intangible assets amortization expense for the nine months ended September 30, 2018 and 2017, totaled $14.4 million and $14.5 million, respectively. Based on capitalized software and other intangible assets at September 30, 2018, estimated amortization expense for future fiscal years is as follows: Fiscal Year Ending December 31, Software Other (in thousands) Remainder of 2018 $ 13,724 $ 4,670 2019 47,416 18,325 2020 37,964 17,438 2021 24,930 16,939 2022 11,957 16,789 2023 6,306 16,478 Thereafter 5,019 83,418 Total $ 147,316 $ 174,057 |
Corporate Restructuring and Oth
Corporate Restructuring and Other Organizational Changes | 9 Months Ended |
Sep. 30, 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 (1,342 ) Foreign currency translation (48 ) Balance, September 30, 2018 $ 4,555 Of the $4.6 million facility closure liability, $1.6 million and $3.0 million is recorded in other current liabilities and noncurrent liabilities, respectively, in the accompanying condensed consolidated balance sheet at September 30, 2018. |
Common Stock and Treasury Stock
Common Stock and Treasury Stock | 9 Months Ended |
Sep. 30, 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 2,346,427 shares for $54.5 million under the program during the nine months ended September 30, 2018. Under the program to date, the Company has repurchased 44,129,393 shares for approximately $547.8 million. The maximum remaining authorized for purchase under the stock repurchase program was $176.6 million as of September 30, 2018. |
Earnings (loss) Per Share
Earnings (loss) Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (loss) Per Share | 8. Earnings (loss) Per Share Basic earnings (loss) per share is computed on the basis of weighted average outstanding common shares. Diluted earnings (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 earnings (loss) per share (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Weighted average shares outstanding: Basic weighted average shares outstanding 115,889 118,254 115,615 117,096 Add: Dilutive effect of stock options 1,603 1,489 — — Diluted weighted average shares outstanding 117,492 119,743 115,615 117,096 The diluted earnings per share computation excludes 1.2 million and 3.3 million options to purchase shares, contingently issuable shares, and restricted share awards during the three months ended September 30, 2018 and 2017, respectively, as their effect would be anti-dilutive. The diluted loss per share computation excludes 8.0 million and 10.1 million options to purchase shares, contingently issuable shares, and restricted share awards during the nine months ended September 30, 2018 and 2017, respectively, as their effect would be anti-dilutive. Common stock outstanding as of September 30, 2018 and December 31, 2017, was 115,981,696 and 117,096,731, respectively. |
Other, net
Other, net | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other, net | 9. Other, net Other is comprised of foreign currency transaction losses of $1.3 million and $1.1 million for the three months ended September 30, 2018 and 2017, respectively. Other is comprised of foreign currency transaction losses of $3.0 million and $2.2 million for the nine months ended September 30, 2018 and 2017, respectively. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Revenue ACI On Premise $ 141,006 $ 126,006 $ 367,431 $ 385,108 ACI On Demand 104,519 99,729 322,399 312,688 Total revenue $ 245,525 $ 225,735 $ 689,830 $ 697,796 Segment Adjusted EBITDA ACI On Premise $ 77,819 $ 65,138 $ 171,477 $ 196,060 ACI On Demand 3,270 (1,241 ) (4,327 ) (8,794 ) Depreciation and amortization (23,545 ) (25,553 ) (72,889 ) (76,772 ) Stock-based compensation (6,575 ) (8,084 ) (20,642 ) (22,724 ) Corporate and unallocated expenses (22,610 ) (18,837 ) (64,122 ) (111,167 ) Interest, net (9,810 ) (9,209 ) (23,406 ) (29,777 ) Other, net (1,304 ) (1,059 ) (3,036 ) (2,176 ) Income (loss) before income taxes $ 17,245 $ 1,155 $ (16,945 ) $ (55,350 ) Depreciation and amortization ACI On Premise $ 2,772 $ 3,321 $ 8,596 $ 9,915 ACI On Demand 7,906 8,576 23,468 25,973 Corporate 12,867 13,656 40,825 40,884 Total depreciation and amortization $ 23,545 $ 25,553 $ 72,889 $ 76,772 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 September 30, 2018 Three Months Ended September 30, 2017 (in thousands) ACI ACI Total ACI ACI Total Primary Geographic Markets Americas - United States $ 26,022 $ 88,401 $ 114,423 $ 36,189 $ 84,669 $ 120,858 Americas - Other 16,709 2,409 19,118 16,874 2,314 19,188 EMEA 80,738 12,385 93,123 47,919 12,104 60,023 Asia Pacific 17,537 1,324 18,861 25,024 642 25,666 Total $ 141,006 $ 104,519 $ 245,525 $ 126,006 $ 99,729 $ 225,735 Primary Solution Categories Bill Payments $ — $ 64,134 $ 64,134 $ — $ 62,328 $ 62,328 Digital Channels/Online 7,499 9,327 16,826 13,403 11,555 24,958 Merchant Payments 6,216 18,052 24,268 6,423 12,458 18,881 Payments Risk Management 7,259 11,068 18,327 10,887 11,192 22,079 Real Time Payments 23,704 540 24,244 11,745 520 12,265 Retail Payments 96,328 1,398 97,726 83,548 1,676 85,224 Total $ 141,006 $ 104,519 $ 245,525 $ 126,006 $ 99,729 $ 225,735 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 (in thousands) ACI ACI Total ACI ACI Total Primary Geographic Markets Americas - United States $ 82,280 $ 275,171 $ 357,451 $ 118,311 $ 268,125 $ 386,436 Americas - Other 45,269 7,077 52,346 44,591 7,168 51,759 EMEA 181,913 36,819 218,732 166,379 35,554 201,933 Asia Pacific 57,969 3,332 61,301 55,827 1,841 57,668 Total $ 367,431 $ 322,399 $ 689,830 $ 385,108 $ 312,688 $ 697,796 Primary Solution Categories Bill Payments $ — $ 204,673 $ 204,673 $ — $ 201,259 $ 201,259 Digital Channels/Online 27,779 30,281 58,060 36,118 33,771 69,889 Merchant Payments 16,476 44,423 60,899 20,175 35,816 55,991 Payments Risk Management 25,711 34,524 60,235 22,855 33,604 56,459 Real Time Payments 53,086 1,474 54,560 35,195 2,418 37,613 Retail Payments 244,379 7,024 251,403 270,765 5,820 276,585 Total $ $ $ $ $ $ The following is selected financial data for the Company’s long-lived assets by geographic location for the periods indicated: (in thousands) September 30, December 31, Long lived assets United States $ 834,386 $ 759,513 Other 708,424 613,556 $ 1,542,810 $ 1,373,069 No single customer accounted for more than 10% of the Company’s consolidated revenues during the three and nine months ended September 30, 2018 and 2017. Aggregate revenues attributable to our customers in Canada accounted for 11.8% of the Company’s consolidated revenues during the three months ended September 30, 2018. No other country outside the United States and Canada accounted for more than 10% of the Company’s consolidated revenues during the three months ended September 30, 2018. During the three months ended September 30, 2017, no other country outside the United States accounted for more than 10% of the Company’s consolidated revenues. No other country outside the United States accounted for more than 10% of the Company’s consolidated revenues during the nine months ended September 30, 2018 and 2017. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 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 September 30, 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 September 30, 2018 was 12%. The Company reported a tax charge for the nine months ended September 30, 2018 while reporting a pretax loss for the same period. The resulting effective tax rate is a negative 11%. The earnings of the Company’s foreign entities for the three and nine months ended September 30, 2018 were $27.3 million and $32.7 million, respectively. The effective tax rate for the three and nine months ended September 30, 2018 were impacted by profits in certain foreign jurisdictions taxed at lower rates and equity compensation tax benefits, partially offset by lower domestic tax benefits resulting from the current GILTI tax and Base Erosion and Anti-Abuse Tax (“BEAT”) charges. The Company reported a tax benefit for the three months ended September 30, 2017 while reporting a pretax profit for the same period. The resulting effective tax rate is a negative 193%. The effective tax rate for the nine months ended September 30, 2017 was 49%.The earnings of the Company’s foreign entities for the three and nine months ended September 30, 2017 were $15.2 million and $40.6 million, respectively. The effective tax rates for the three and nine months ended September 30, 2017 were impacted by profits and losses in certain foreign jurisdictions taxed at lower rates and domestic losses taxed at higher 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 $27.8 million as of September 30, 2018 and $27.2 million as of December 31, 2017, excluding related liabilities for interest and penalties of $1.1 million and $1.2 million as of September 30, 2018 and December 31, 2017, respectively. The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease within the next 12 months by approximately $3.7 million, due to the settlement of various audits and the expiration of statutes of limitation. During the three months ended September 30, 2018, the Company made a final determination in accordance with SAB 118 that the unremitted earnings and profits of its entities in Australia, Ireland, New Zealand, Romania, Russia and South Africa are no longer permanently reinvested. The Company continues to evaluate its position regarding any outside basis differences for its entities in those countries. The Company recorded a $0.5 million foreign tax charge related to the remittance of earnings from those countries. There are unremitted foreign earnings in other countries which continue to be reinvested indefinitely. For entities in countries not listed above, the Company continues to evaluate the potential foreign and U.S. state tax liabilities that would result from future repatriations from those non-U.S. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 12. Accumulated Other Comprehensive Loss Activity within accumulated other comprehensive loss for the nine months ended September 30, 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 loss (11,110 ) Balance at September 30, 2018 $ (88,466 ) Accumulated Balance at December 31, 2016 $ (94,100 ) Other comprehensive income 14,526 Balance at September 30, 2017 $ (79,574 ) |
Condensed Consolidated Financ_2
Condensed Consolidated Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Other Current Assets and Other Current Liabilities | Other Current Assets and Other Current Liabilities (in thousands) September 30, 2018 December 31, Settlement deposits $ 5,477 $ 22,282 Settlement receivables 11,462 30,063 Other 6,305 5,781 Total other current assets $ 23,244 $ 58,126 (in thousands) September 30, 2018 December 31, Settlement payables $ 16,221 $ 48,953 Accrued interest 2,726 7,291 Vendor financed licenses 5,973 1,862 Royalties payable 7,148 9,264 Other 28,007 35,534 Total other current liabilities $ 60,075 $ 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 September 30, 2018 and December 31, 2017 were $185.4 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 2026 Senior Notes was $407.1 million at September 30, 2018. The fair value of the Company’s 2020 Senior Notes was $305.7 million at December 31, 2017. 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 the 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, 2016-16 2016-16 In August 2018, the FASB issued ASU 2018-05, Intangibles—Goodwill and Other–Internal-Use 2018-05”). 2018-05 350-40, Intangibles – Goodwill and Other — Internal-Use 350-40”), 2018-05 |
Recently Issued Accounting Standards Not Yet Effective | Recently Issued Accounting Standards Not Yet Effective In February 2016, the FASB issued ASU 2016-02, Leases The Company has established a cross-functional project team to assess implementing changes to its systems, processes, and controls, in conjunction with a comprehensive review of existing lease agreements. The Company expects the adoption of ASC 842 will have a material impact on its condensed consolidated balance sheet as its rights and obligations from its existing operating leases will be recognized on the balance sheet as assets and liabilities. As of September 30, 2018, the Company’s undiscounted minimum commitments under noncancelable operating leases was approximately $79.4 million. The Company does not expect the adoption of ASC 842 to have a material impact on its results of operations or statement of cash flows. 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. September 30, December 31, (in thousands) 2018 2017 Billed Receivables $ 172,395 $ 240,137 Allowance for doubtful accounts (3,598 ) (4,799 ) Billed Receivables, net $ 168,797 $ 235,338 Accrued receivables 324,019 27,507 Significant financing component (31,343 ) — Total accrued receivables, net 292,676 27,507 Less current accrued receivables 120,532 27,507 Less current significant financing component (9,688 ) — Total long-term accrued receivables, net $ 181,832 $ — Total receivables, net $ 461,473 $ 262,845 No customer accounted for more than 10% of the Company’s consolidated receivables balance as of September 30, 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 145,573 Recognition of deferred revenue (144,935 ) Foreign currency translation (3,525 ) Balance, September 30, 2018 $ 142,457 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 $599.9 million as of September 30, 2018, of which the Company expects to recognize approximately 48% over the next 12 months and the remainder thereafter. During the three and nine-month periods ended September 30, 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 September 30, 2018, $0.6 million and $15.4 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 September 30, 2018, $0.1 million and $12.6 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 are as follows: September 30, 2018 (in thousands) As Reported Without Effect of Change Higher / (Lower) Assets Receivables, net of allowances $ 279,641 $ 202,829 $ 76,812 Recoverable income taxes 8,233 6,711 1,522 Prepaid expenses 25,875 26,616 (741 ) Other current assets 23,244 22,844 400 Accrued receivables, net 181,832 — 181,832 Deferred income taxes, net 28,179 67,261 (39,082 ) Other noncurrent assets 54,477 40,275 14,202 Liabilities Deferred revenue 93,668 108,162 (14,494 ) Income taxes payable 1,600 153 1,447 Other current liabilities 60,075 60,310 (235 ) Deferred income taxes, net 26,372 6,161 20,211 Stockholders’ equity Total stockholders’ equity 962,938 734,925 228,013 For the Three Months Ended September 30, 2018 (in thousands) As Reported Without application of ASC 606 Effect of Change Higher / (Lower) Revenues Software as a service and platform as a service $ 104,519 $ 103,764 $ 755 License 68,964 69,052 (88 ) Maintenance 54,373 54,659 (286 ) Services 17,669 18,184 (515 ) Operating expenses Selling and marketing 28,252 26,397 1,855 Other income (expense) Interest income 2,763 230 2,533 Other, net (1,304 ) (1,155 ) (149 ) Income tax provision Income tax expense (benefit) 2,012 2,804 (792 ) For the Nine Months Ended September 30, 2018 (in thousands) As Reported Without application of Effect of Change Revenues Software as a service and platform as a service $ 322,399 $ 321,897 $ 502 License 142,565 163,788 (21,223 ) Maintenance 166,080 166,673 (593 ) Services 58,786 58,938 (152 ) Operating expenses Selling and marketing 93,305 88,667 4,638 Other income (expense) Interest income 8,249 601 7,648 Other, net (3,036 ) (2,495 ) (541 ) Income tax provision Income tax expense (benefit) 1,824 5,371 (3,547 ) 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 recognized 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 and revenue from renewals of software license arrangements in the period during which the renewal is signed. Under ASC 606, license revenue from these software license arrangements with extended payment terms 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. Revenue for license renewals is recognized when the customer can begin to use and benefit from the license, which is generally at the commencement of the license renewal period. 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 earnings (loss) per share is computed on the basis of weighted average outstanding common shares. Diluted earnings (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 Financ_3
Condensed Consolidated Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Components of Other Current Assets and Other Current Liabilities | Other Current Assets and Other Current Liabilities (in thousands) September 30, December 31, Settlement deposits $ 5,477 $ 22,282 Settlement receivables 11,462 30,063 Other 6,305 5,781 Total other current assets $ 23,244 $ 58,126 (in thousands) September 30, December 31, Settlement payables $ 16,221 $ 48,953 Accrued interest 2,726 7,291 Vendor financed licenses 5,973 1,862 Royalties payable 7,148 9,264 Other 28,007 35,534 Total other current liabilities $ 60,075 $ 102,904 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 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. September 30, December 31, (in thousands) 2018 2017 Billed Receivables $ 172,395 $ 240,137 Allowance for doubtful accounts (3,598 ) (4,799 ) Billed Receivables, net $ 168,797 $ 235,338 Accrued receivables 324,019 27,507 Significant financing component (31,343 ) — Total accrued receivables, net 292,676 27,507 Less current accrued receivables 120,532 27,507 Less current significant financing component (9,688 ) — Total long-term accrued receivables, net $ 181,832 $ — Total receivables, net $ 461,473 $ 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 145,573 Recognition of deferred revenue (144,935 ) Foreign currency translation (3,525 ) Balance, September 30, 2018 $ 142,457 |
Financial Statement Effect of Applying ASC 606 | The financial statement line items affected by adoption of ASC 606 are as follows: September 30, 2018 (in thousands) As Reported Without Effect of Change Higher / (Lower) Assets Receivables, net of allowances $ 279,641 $ 202,829 $ 76,812 Recoverable income taxes 8,233 6,711 1,522 Prepaid expenses 25,875 26,616 (741 ) Other current assets 23,244 22,844 400 Accrued receivables, net 181,832 — 181,832 Deferred income taxes, net 28,179 67,261 (39,082 ) Other noncurrent assets 54,477 40,275 14,202 Liabilities Deferred revenue 93,668 108,162 (14,494 ) Income taxes payable 1,600 153 1,447 Other current liabilities 60,075 60,310 (235 ) Deferred income taxes, net 26,372 6,161 20,211 Stockholders’ equity Total stockholders’ equity 962,938 734,925 228,013 For the Three Months Ended September 30, 2018 (in thousands) As Reported Without application of ASC 606 Effect of Change Higher / (Lower) Revenues Software as a service and platform as a service $ 104,519 $ 103,764 $ 755 License 68,964 69,052 (88 ) Maintenance 54,373 54,659 (286 ) Services 17,669 18,184 (515 ) Operating expenses Selling and marketing 28,252 26,397 1,855 Other income (expense) Interest income 2,763 230 2,533 Other, net (1,304 ) (1,155 ) (149 ) Income tax provision Income tax expense (benefit) 2,012 2,804 (792 ) For the Nine Months Ended September 30, 2018 (in thousands) As Reported Without application of Effect of Change Revenues Software as a service and platform as a service $ 322,399 $ 321,897 $ 502 License 142,565 163,788 (21,223 ) Maintenance 166,080 166,673 (593 ) Services 58,786 58,938 (152 ) Operating expenses Selling and marketing 93,305 88,667 4,638 Other income (expense) Interest income 8,249 601 7,648 Other, net (3,036 ) (2,495 ) (541 ) Income tax provision Income tax expense (benefit) 1,824 5,371 (3,547 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Maturities on Long-Term Debt Outstanding | Maturities on long-term debt outstanding at September 30, 2018 are as follows: Fiscal year ending December 31, (in thousands) 2018 $ 3,958 2019 23,747 2020 23,747 2021 31,662 2022 205,803 Thereafter 400,000 Total $ 688,917 |
Carrying Value of Debt | As of September 30, 2018, and at all times during the period, the Company was in compliance with its financial debt covenants. (in thousands) As of September 30, As of December 31, Term credit facility $ 288,917 $ 394,250 Revolving credit facility — 2,000 5.750% Senior Notes, due August 2026 400,000 — 6.375% Senior Notes, due August 2020 — 300,000 Debt issuance costs (13,993 ) (10,521 ) Total debt 674,924 685,729 Less current portion of term credit facility 21,768 20,750 Less current portion of debt issuance costs (3,003 ) (2,964 ) Total long-term debt $ 656,159 $ 667,943 |
Stock-BasedCompensation Plans (
Stock-BasedCompensation Plans (Tables) | 9 Months Ended |
Sep. 30, 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 Intrinsic Value of In-the- Money Options Outstanding as of December 31, 2017 6,162,717 $ 16.83 Granted 170,455 23.36 Exercised (1,262,994 ) 14.57 Forfeited (81,881 ) 18.62 Outstanding as of September 30, 2018 4,988,297 $ 17.60 6.30 $ 52,585,398 Exercisable as of September 30, 2018 3,533,425 $ 16.84 5.64 $ 39,930,860 |
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 nine months ended September 30, 2018 and 2017 were estimated on the date of grant using the Black-Scholes option-pricing , Nine Months Ended Nine Months Ended September 30, 2018 September 30, 2017 Expected life (years) 5.6 5.6 Interest rate 2.7 % 1.9 % Volatility 26.4 % 29.4 % Dividend yield — — |
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: Nine Months Ended Nine Months Ended September 30, 2018 September 30, 2017 Expected life (years) 2.9 2.9 Interest rate 2.4 % 1.5 % Volatility 28.0 % 26.5 % 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 September 30, 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 (89,582 ) 19.24 Nonvested as of September 30, 2018 1,035,453 $ 18.92 |
TSR Plan [Member] | |
Summary of Nonvested Performance Share Awards and Changes During Period | A summary of nonvested TSRs outstanding as of September 30, 2018, and changes during the period are as follows: Nonvested Total Shareholder Return Awards Number of Weighted- Average Nonvested as of December 31, 2017 143,649 $ 24.37 Granted 541,214 31.31 Forfeited (33,970 ) 29.90 Nonvested as of September 30, 2018 650,893 $ 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 September 30, 2018, and changes during the period are as follows: Nonvested Restricted Share Awards Number of Share Awards Weighted-Average Grant Nonvested as of December 31, 2017 503,237 $ 20.63 Vested (231,473 ) 21.20 Forfeited (47,411 ) 19.88 Nonvested as of September 30, 2018 224,353 $ 20.18 |
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 September 30, 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 Vested (173,636 ) 24.41 Nonvested as of September 30, 2018 — $ — |
Restricted Share Units [Member] | |
Summary of Nonvested Restricted Share and Changes During Period | A summary of nonvested RSUs as of September 30, 2018, and changes during the period are as follows: Nonvested Restricted Share Units Number of Weighted- Nonvested as of December 31, 2017 — $ — Granted 714,123 23.81 Vested (10,000 ) 25.72 Forfeited (38,739 ) 23.36 Nonvested as of September 30, 2018 665,384 $ 23.81 |
Software and Other Intangible_2
Software and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 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) September 30, 2018 December 31, 2017 Gross Accumulated Net Balance Gross Accumulated Net Balance Customer relationships $ 300,782 $ (128,367 ) $ 172,415 $ 305,218 $ (116,677 ) $ 188,541 Trademarks and tradenames 16,450 (14,808 ) 1,642 16,646 (13,906 ) 2,740 $ 317,232 $ (143,175 ) $ 174,057 $ 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 September 30, 2018, estimated amortization expense for future fiscal years is as follows: Fiscal Year Ending December 31, Software Other (in thousands) Remainder of 2018 $ 13,724 $ 4,670 2019 47,416 18,325 2020 37,964 17,438 2021 24,930 16,939 2022 11,957 16,789 2023 6,306 16,478 Thereafter 5,019 83,418 Total $ 147,316 $ 174,057 |
Corporate Restructuring and O_2
Corporate Restructuring and Other Organizational Changes (Tables) | 9 Months Ended |
Sep. 30, 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 (1,342 ) Foreign currency translation (48 ) Balance, September 30, 2018 $ 4,555 |
Earnings (loss) Per Share (Tabl
Earnings (loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 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 earnings (loss) per share (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Weighted average shares outstanding: Basic weighted average shares outstanding 115,889 118,254 115,615 117,096 Add: Dilutive effect of stock options 1,603 1,489 — — Diluted weighted average shares outstanding 117,492 119,743 115,615 117,096 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Revenue ACI On Premise $ 141,006 $ 126,006 $ 367,431 $ 385,108 ACI On Demand 104,519 99,729 322,399 312,688 Total revenue $ 245,525 $ 225,735 $ 689,830 $ 697,796 Segment Adjusted EBITDA ACI On Premise $ 77,819 $ 65,138 $ 171,477 $ 196,060 ACI On Demand 3,270 (1,241 ) (4,327 ) (8,794 ) Depreciation and amortization (23,545 ) (25,553 ) (72,889 ) (76,772 ) Stock-based compensation (6,575 ) (8,084 ) (20,642 ) (22,724 ) Corporate and unallocated expenses (22,610 ) (18,837 ) (64,122 ) (111,167 ) Interest, net (9,810 ) (9,209 ) (23,406 ) (29,777 ) Other, net (1,304 ) (1,059 ) (3,036 ) (2,176 ) Income (loss) before income taxes $ 17,245 $ 1,155 $ (16,945 ) $ (55,350 ) Depreciation and amortization ACI On Premise $ 2,772 $ 3,321 $ 8,596 $ 9,915 ACI On Demand 7,906 8,576 23,468 25,973 Corporate 12,867 13,656 40,825 40,884 Total depreciation and amortization $ 23,545 $ 25,553 $ 72,889 $ 76,772 |
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 September 30, 2018 Three Months Ended September 30, 2017 (in thousands) ACI ACI Total ACI ACI Total Primary Geographic Markets Americas - United States $ 26,022 $ 88,401 $ 114,423 $ 36,189 $ 84,669 $ 120,858 Americas - Other 16,709 2,409 19,118 16,874 2,314 19,188 EMEA 80,738 12,385 93,123 47,919 12,104 60,023 Asia Pacific 17,537 1,324 18,861 25,024 642 25,666 Total $ 141,006 $ 104,519 $ 245,525 $ 126,006 $ 99,729 $ 225,735 Primary Solution Categories Bill Payments $ — $ 64,134 $ 64,134 $ — $ 62,328 $ 62,328 Digital Channels/Online 7,499 9,327 16,826 13,403 11,555 24,958 Merchant Payments 6,216 18,052 24,268 6,423 12,458 18,881 Payments Risk Management 7,259 11,068 18,327 10,887 11,192 22,079 Real Time Payments 23,704 540 24,244 11,745 520 12,265 Retail Payments 96,328 1,398 97,726 83,548 1,676 85,224 Total $ 141,006 $ 104,519 $ 245,525 $ 126,006 $ 99,729 $ 225,735 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 (in thousands) ACI ACI Total ACI ACI Total Primary Geographic Markets Americas - United States $ 82,280 $ 275,171 $ 357,451 $ 118,311 $ 268,125 $ 386,436 Americas - Other 45,269 7,077 52,346 44,591 7,168 51,759 EMEA 181,913 36,819 218,732 166,379 35,554 201,933 Asia Pacific 57,969 3,332 61,301 55,827 1,841 57,668 Total $ 367,431 $ 322,399 $ 689,830 $ 385,108 $ 312,688 $ 697,796 Primary Solution Categories Bill Payments $ — $ 204,673 $ 204,673 $ — $ 201,259 $ 201,259 Digital Channels/Online 27,779 30,281 58,060 36,118 33,771 69,889 Merchant Payments 16,476 44,423 60,899 20,175 35,816 55,991 Payments Risk Management 25,711 34,524 60,235 22,855 33,604 56,459 Real Time Payments 53,086 1,474 54,560 35,195 2,418 37,613 Retail Payments 244,379 7,024 251,403 270,765 5,820 276,585 Total $ $ $ $ $ $ The following is selected financial data for the Company’s long-lived assets by geographic location for the periods indicated: (in thousands) September 30, December 31, Long lived assets United States $ 834,386 $ 759,513 Other 708,424 613,556 $ 1,542,810 $ 1,373,069 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Activity within Accumulated Other Comprehensive Loss | Activity within accumulated other comprehensive loss for the nine months ended September 30, 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 loss (11,110 ) Balance at September 30, 2018 $ (88,466 ) Accumulated Balance at December 31, 2016 $ (94,100 ) Other comprehensive income 14,526 Balance at September 30, 2017 $ (79,574 ) |
Condensed Consolidated Financ_4
Condensed Consolidated Financial Statements - Components of Other Current Assets and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other Current Assets and Liabilities [Line Items] | ||
Other | $ 6,305 | $ 5,781 |
Total other current assets | 23,244 | 58,126 |
Settlement payables | 16,221 | 48,953 |
Accrued interest | 2,726 | 7,291 |
Vendor financed licenses | 5,973 | 1,862 |
Royalties payable | 7,148 | 9,264 |
Other | 28,007 | 35,534 |
Total other current liabilities | 60,075 | 102,904 |
Settlement deposits [Member] | ||
Other Current Assets and Liabilities [Line Items] | ||
Other assets settlement | 5,477 | 22,282 |
Settlement receivables [Member] | ||
Other Current Assets and Liabilities [Line Items] | ||
Other assets settlement | $ 11,462 | $ 30,063 |
Condensed Consolidated Financ_5
Condensed Consolidated Financial Statements - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Amount of off balance sheet settlement funds | $ 185,400 | $ 238,900 |
Goodwill | 909,691 | 909,691 |
Undiscounted Minimum Commitments Under Noncancelable operating leases | 79,400 | |
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] | Senior Notes 2026 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Fair value senior note | $ 407,100 | |
Level 2 [Member] | Senior Notes 2020 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Fair value senior note | $ 305,700 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
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 June 30, 2018 or December 31, 2017 | No customer accounted for more than 10% of the Company's consolidated receivables balance as of September 30, 2018 or December 31, 2017. | |
Revenue allocated to remaining performance obligations | $ 599.9 | $ 599.9 |
Percentage of revenue allocated to remaining performance obligations to be recognized over the next 12 months | 48.00% | 48.00% |
Capitalized sales commissions minimum amortization period | 1 year | |
Selling and Marketing [Member] | ||
Revenue [Line Items] | ||
Amortization of capitalized sales commissions | $ 2.1 | $ 6.4 |
Cost of Revenue [Member] | ||
Revenue [Line Items] | ||
Amortization of capitalized contract costs | 1.1 | 3.5 |
Other Current Assets [Member] | ||
Revenue [Line Items] | ||
Capitalized sales commissions | 0.6 | 0.6 |
Capitalized contract costs, current | 0.1 | 0.1 |
Other Noncurrent Assets [Member] | ||
Revenue [Line Items] | ||
Capitalized sales commissions | 15.4 | 15.4 |
Capitalized contract costs, noncurrent | $ 12.6 | $ 12.6 |
Revenue - Receivables and Conce
Revenue - Receivables and Concentration of Credit Risk (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract] | ||
Billed Receivables | $ 172,395 | $ 240,137 |
Allowance for doubtful accounts | (3,598) | (4,799) |
Billed Receivables, net | 168,797 | 235,338 |
Accrued receivables | 324,019 | 27,507 |
Significant financing component | (31,343) | |
Total accrued receivables, net | 292,676 | 27,507 |
Less current accrued receivables | 120,532 | 27,507 |
Less current significant financing component | (9,688) | |
Total long-term accrued receivables, net | 181,832 | |
Total receivables, net | $ 461,473 | $ 262,845 |
Revenue - Changes in Deferred R
Revenue - Changes in Deferred Revenue (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue, Beginning Balance | $ 145,344 |
Deferral of revenue | 145,573 |
Recognition of deferred revenue | (144,935) |
Foreign currency translation | (3,525) |
Deferred Revenue, Ending Balance | $ 142,457 |
Revenue - Financial Statement E
Revenue - Financial Statement Effect of Applying ASC 606 (Balance Sheet) (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Receivables, net of allowances | $ 279,641 | $ 262,845 |
Recoverable income taxes | 8,233 | 7,921 |
Prepaid expenses | 25,875 | 23,219 |
Other current assets | 23,244 | 58,126 |
Accrued receivables, net | 181,832 | |
Deferred income taxes, net | 28,179 | 66,749 |
Other noncurrent assets | 54,477 | 36,483 |
Liabilities | ||
Deferred revenue | 93,668 | 107,543 |
Income taxes payable | 1,600 | 9,898 |
Other current liabilities | 60,075 | 102,904 |
Deferred income taxes, net | 26,372 | 16,910 |
Stockholders' equity | ||
Total stockholders' equity | 962,938 | $ 764,597 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Assets | ||
Receivables, net of allowances | 202,829 | |
Recoverable income taxes | 6,711 | |
Prepaid expenses | 26,616 | |
Other current assets | 22,844 | |
Deferred income taxes, net | 67,261 | |
Other noncurrent assets | 40,275 | |
Liabilities | ||
Deferred revenue | 108,162 | |
Income taxes payable | 153 | |
Other current liabilities | 60,310 | |
Deferred income taxes, net | 6,161 | |
Stockholders' equity | ||
Total stockholders' equity | 734,925 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||
Assets | ||
Receivables, net of allowances | 76,812 | |
Recoverable income taxes | 1,522 | |
Prepaid expenses | (741) | |
Other current assets | 400 | |
Accrued receivables, net | 181,832 | |
Deferred income taxes, net | (39,082) | |
Other noncurrent assets | 14,202 | |
Liabilities | ||
Deferred revenue | (14,494) | |
Income taxes payable | 1,447 | |
Other current liabilities | (235) | |
Deferred income taxes, net | 20,211 | |
Stockholders' equity | ||
Total stockholders' equity | $ 228,013 |
Revenue - Financial Statement_2
Revenue - Financial Statement Effect of Applying ASC 606 (Income Statement) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating expenses | ||||
Selling and marketing | $ 28,252 | $ 25,236 | $ 93,305 | $ 81,190 |
Other income (expense) | ||||
Interest income | 2,763 | 165 | 8,249 | 421 |
Other, net | (1,304) | (1,059) | (3,036) | (2,176) |
Income tax provision | ||||
Income tax expense (benefit) | 2,012 | (2,233) | 1,824 | (27,321) |
Software as a service and platform as a service [Member] | ||||
Revenues | ||||
Total revenues | 104,519 | 99,761 | 322,399 | 312,677 |
License [Member] | ||||
Revenues | ||||
Total revenues | 68,964 | 50,017 | 142,565 | 163,578 |
Maintenance [Member] | ||||
Revenues | ||||
Total revenues | 54,373 | $ 56,349 | 166,080 | $ 166,829 |
Service [Member] | ||||
Revenues | ||||
Total revenues | 17,669 | 58,786 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Operating expenses | ||||
Selling and marketing | 26,397 | 88,667 | ||
Other income (expense) | ||||
Interest income | 230 | 601 | ||
Other, net | (1,155) | (2,495) | ||
Income tax provision | ||||
Income tax expense (benefit) | 2,804 | 5,371 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Software as a service and platform as a service [Member] | ||||
Revenues | ||||
Total revenues | 103,764 | 321,897 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | License [Member] | ||||
Revenues | ||||
Total revenues | 69,052 | 163,788 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Maintenance [Member] | ||||
Revenues | ||||
Total revenues | 54,659 | 166,673 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Service [Member] | ||||
Revenues | ||||
Total revenues | 18,184 | 58,938 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Operating expenses | ||||
Selling and marketing | 1,855 | 4,638 | ||
Other income (expense) | ||||
Interest income | 2,533 | 7,648 | ||
Other, net | (149) | (541) | ||
Income tax provision | ||||
Income tax expense (benefit) | (792) | (3,547) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | Software as a service and platform as a service [Member] | ||||
Revenues | ||||
Total revenues | 755 | 502 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | License [Member] | ||||
Revenues | ||||
Total revenues | (88) | (21,223) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | Maintenance [Member] | ||||
Revenues | ||||
Total revenues | (286) | (593) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | Service [Member] | ||||
Revenues | ||||
Total revenues | $ (515) | $ (152) |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Aug. 21, 2018 | Feb. 24, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
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 September 30, 2018, for the Credit Facility was 3.99% | ||||
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 | 3.99% | ||||
Debt Issuance cost | $ 13,993,000 | $ 10,521,000 | |||
Debt Issuance cost paid | $ 7,253,000 | $ 5,340,000 | |||
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 | 288,900,000 | ||||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior notes amount outstanding | 400,000,000 | ||||
Senior Notes 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior notes amount outstanding | $ 400,000,000 | ||||
Issue price percentage of senior notes of the principal amount | 100.00% | ||||
Percentage of interest rate on notes | 5.75% | ||||
Senior Notes maturity date | Aug. 15, 2026 | ||||
Debt Issuance cost | 7,300,000 | ||||
Debt Issuance cost paid | $ 7,300,000 | ||||
Maturity date of senior notes | Aug. 15, 2026 | ||||
Senior Note Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of interest rate on notes | 6.375% | ||||
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 | ||||
Credit Agreement [Member] | Term Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facilities, maximum borrowing capacity | $ 415,000,000 | ||||
Credit facilities, maturity | 5 years | ||||
Multi-year License Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Financed internally-used software | $ 11,900,000 | ||||
Annual payments due date | Through June 2023 | ||||
Other current liabilities | $ 4,700,000 | ||||
Other non-current liabilities | 6,900,000 | ||||
Outstanding other Long-term Debt | $ 11,600,000 | ||||
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 | Sep. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 3,958 |
2,019 | 23,747 |
2,020 | 23,747 |
2,021 | 31,662 |
2,022 | 205,803 |
Thereafter | 400,000 |
Total | $ 688,917 |
Debt - Carrying Value of Debt (
Debt - Carrying Value of Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (13,993) | $ (10,521) |
Total debt | 674,924 | 685,729 |
Current portion of long-term debt | 18,765 | 17,786 |
Less current portion of debt issuance costs | (3,003) | (2,964) |
Total long-term debt | 656,159 | 667,943 |
5.75% Senior Notes, due August 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 400,000 | |
6.375% Senior Notes, due August 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 300,000 | |
Term Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 288,917 | 394,250 |
Current portion of long-term debt | $ 21,768 | 20,750 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 2,000 |
Debt - Carrying Value of Debt_2
Debt - Carrying Value of Debt (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2018 | |
5.75% Senior Notes, due August 2026 [Member] | |
Debt Instrument [Line Items] | |
Percentage of interest rate on notes | 5.75% |
Maturity date of senior notes | Aug. 15, 2026 |
6.375% Senior Notes, due August 2020 [Member] | |
Debt Instrument [Line Items] | |
Percentage of interest rate on notes | 6.375% |
Maturity date of senior notes | Aug. 15, 2020 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued under ESPP | 112,549 | 121,765 | ||
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 | $ 13,600,000 | $ 6,600,000 | ||
Expected dividend yield | 0.00% | |||
Dividend paid | $ 0 | |||
Stock-based compensation expenses | $ 6,575,000 | $ 8,084,000 | $ 20,642,000 | 22,724,000 |
Stock-based compensation expenses tax benefits | $ 1,500,000 | $ 2,700,000 | $ 3,600,000 | $ 7,700,000 |
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 | 3,000,000 | ||
Permitted designation for purchase of common stock under ESPP | Participating employees are permitted to designate up to the lesser of $25,000 or 10% of their annual base compensation, for the purchase of common stock under the ESPP. Purchases under the ESPP are made one calendar month after the end of each fiscal quarter. | |||
Employee participating annual base compensation designated for purchase of common stock, amount | $ 25,000 | $ 25,000 | ||
Employee participating annual base compensation designated for purchase of common stock, percent | 10.00% | 10.00% | ||
Price of common stock purchased under ESPP, percent | 85.00% | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs | $ 3,700,000 | $ 3,700,000 | ||
Unrecognized compensation costs, weighted-average recognition periods | 10 months 24 days | |||
Restricted Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU shares vested | 10,000 | |||
Restricted share awards, vesting increments on the anniversary dates of grants | 33.00% | |||
Awards granted requisite service period | 3 years | |||
Unrecognized compensation costs | 12,600,000 | $ 12,600,000 | ||
Unrecognized compensation costs, weighted-average recognition periods | 2 years 3 months 18 days | |||
Restricted Share Awards (RSAs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU shares vested | 231,473 | |||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 41,973 | |||
Performance-Based Restricted Share Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSU shares vested | 173,636 | |||
Shares withheld to pay employees' portion of minimum payroll withholding taxes | 64,699 | |||
Unrecognized compensation costs | 3,200,000 | $ 3,200,000 | ||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 4 months 24 days | |||
LTIP Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs | $ 5,800,000 | $ 5,800,000 | ||
Unrecognized compensation costs, weighted-average recognition periods | 1 year 3 months 18 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% | 200.00% | ||
Unrecognized compensation costs | $ 14,300,000 | $ 14,300,000 | ||
Unrecognized compensation costs, weighted-average recognition periods | 2 years 3 months 18 days |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Summary of Stock Options Issued Pursuant to Stock Incentive Plans (Detail) | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding, Beginning Balance | shares | 6,162,717 |
Granted | shares | 170,455 |
Exercised | shares | (1,262,994) |
Forfeited | shares | (81,881) |
Outstanding, Ending Balance | shares | 4,988,297 |
Number of Shares Exercisable, Ending Balance | shares | 3,533,425 |
Weighted-Average Exercise Price | |
Beginning Balance | $ / shares | $ 16.83 |
Granted | $ / shares | 23.36 |
Exercised | $ / shares | 14.57 |
Forfeited | $ / shares | 18.62 |
Ending Balance | $ / shares | 17.60 |
Weighted-Average Exercise Price Exercisable, Ending Balance | $ / shares | $ 16.84 |
Weighted-Average Remaining Contractual Term (Years) | |
Weighted Average Remaining Contractual Term (Years), Outstanding as of end of period | 6 years 3 months 19 days |
Weighted-Average Remaining Contractual Term (Years), Exercisable as of end of period | 5 years 7 months 21 days |
Aggregate Intrinsic Value of In-the-Money Options | |
Aggregate Intrinsic Value of In-the-Money Options, Outstanding as of end of period | $ | $ 52,585,398 |
Aggregate Intrinsic Value of In-the-Money Options, Exercisable as of end of period | $ | $ 39,930,860 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Estimated Fair Value of Options Granted using Black-Scholes Option-Pricing Model with Weighted-Average Assumptions (Detail) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 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 Plan_4
Stock-Based Compensation Plans - Summary of Nonvested LTIP Performance Based Share Awards and Changes During Period (Detail) - LTIP Performance Shares [Member] | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of Shares at Expected Attainment | |
Beginning Balance | shares | 1,125,035 |
Forfeited | shares | (89,582) |
Ending Balance | shares | 1,035,453 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 18.94 |
Forfeited | $ / shares | 19.24 |
Ending Balance | $ / shares | $ 18.92 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Summary of Nonvested Restricted Share Awards and Changes During Period (Detail) - Restricted Share Awards (RSAs) [Member] | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Nonvested Restricted Share Awards | |
Beginning Balance | shares | 503,237 |
Vested | shares | (231,473) |
Forfeited | shares | (47,411) |
Ending Balance | shares | 224,353 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 20.63 |
Vested | $ / shares | 21.20 |
Forfeited | $ / shares | 19.88 |
Ending Balance | $ / shares | $ 20.18 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Summary of Nonvested Performance Based Share Awards and Changes During Period (Detail) - Performance-Based Restricted Share Awards [Member] | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Nonvested Restricted Share Awards | |
Beginning Balance | shares | 173,636 |
Vested | shares | (173,636) |
Ending Balance | shares | 0 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 24.41 |
Vested | $ / shares | 24.41 |
Ending Balance | $ / shares | $ 0 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Estimated Fair Value of Options Granted Total Shareholder Return (TSRs) using Monte Carlo Simulation Model with Weighted-Average Assumptions (Detail) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 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 Plan_8
Stock-Based Compensation Plans - Summary of Nonvested Total Shareholder Return (TSRs) Outstanding and Changes During Period (Detail) - Total Shareholder Return [Member] | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of Shares at Expected Attainment | |
Beginning Balance | shares | 143,649 |
Granted | shares | 541,214 |
Forfeited | shares | (33,970) |
Ending Balance | shares | 650,893 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 24.37 |
Granted | $ / shares | 31.31 |
Forfeited | $ / shares | 29.90 |
Ending Balance | $ / shares | $ 29.85 |
Stock-Based Compensation Plan_9
Stock-Based Compensation Plans - Summary of Nonvested Restricted Share Unit and Changes During Period (Detail) - Restricted Share Units [Member] | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Nonvested Restricted Share Awards | |
Beginning Balance | shares | 0 |
Granted | shares | 714,123 |
Vested | shares | (10,000) |
Forfeited | shares | (38,739) |
Ending Balance | shares | 665,384 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 0 |
Granted | $ / shares | 23.81 |
Vested | $ / shares | 25.72 |
Forfeited | $ / shares | 23.36 |
Ending Balance | $ / shares | $ 23.81 |
Software and Other Intangible_3
Software and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Software, net | $ 147,316 | $ 147,316 | $ 155,386 | ||
Software, accumulated amortization | 250,000 | 250,000 | 230,700 | ||
Other intangible assets amortization expense | 4,700 | $ 4,900 | 14,400 | $ 14,500 | |
Software Marketed for External Sale [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Software, net | 30,900 | 30,900 | 40,900 | ||
Software, amortization expense | 2,600 | 3,100 | $ 9,600 | 9,600 | |
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 | 116,400 | $ 116,400 | $ 114,500 | ||
Software, amortization expense | $ 10,200 | $ 11,500 | $ 31,000 | $ 34,100 | |
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 Intangible_4
Software and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 317,232 | $ 321,864 |
Accumulated Amortization | (143,175) | (130,583) |
Net Balance | 174,057 | 191,281 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 300,782 | 305,218 |
Accumulated Amortization | (128,367) | (116,677) |
Net Balance | 172,415 | 188,541 |
Trademarks and Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,450 | 16,646 |
Accumulated Amortization | (14,808) | (13,906) |
Net Balance | $ 1,642 | $ 2,740 |
Software and Other Intangible_5
Software and Other Intangible Assets - Estimated Amortization Expense for Future Fiscal Years Based on Capitalized Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Balance | $ 174,057 | $ 191,281 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2018 | 13,724 | |
2,019 | 47,416 | |
2,020 | 37,964 | |
2,021 | 24,930 | |
2,022 | 11,957 | |
2,023 | 6,306 | |
Thereafter | 5,019 | |
Net Balance | 147,316 | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remainder of 2018 | 4,670 | |
2,019 | 18,325 | |
2,020 | 17,438 | |
2,021 | 16,939 | |
2,022 | 16,789 | |
2,023 | 16,478 | |
Thereafter | 83,418 | |
Net Balance | $ 174,057 |
Corporate Restructuring and O_3
Corporate Restructuring and Other Organizational Changes - Components of Corporate Restructuring and Other Reorganization Activities from Recent Acquisitions (Detail) - Facility Closures [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | $ 5,945 |
Amounts paid during the period | (1,342) |
Foreign currency translation | (48) |
Ending balance | $ 4,555 |
Corporate Restructuring and O_4
Corporate Restructuring and Other Organizational Changes - Additional Information (Detail) - Facility Closures [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 4,555 | $ 5,945 |
Other Current Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,600 | |
Other Noncurrent Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 3,000 |
Common Stock and Treasury Sto_2
Common Stock and Treasury Stock - Additional Information (Detail) - USD ($) | 9 Months Ended | 73 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Feb. 28, 2018 | |
Stock authorized to purchase under stock repurchase program | $ 200,000,000 | ||
Repurchase of common stock, shares | 2,346,427 | 44,129,393 | |
Repurchase of common stock, value | $ 54,500,000 | $ 547,800,000 | |
Maximum [Member] | |||
Remaining value of shares authorized for purchase under the stock repurchase program | $ 176,600,000 | $ 176,600,000 |
Earnings (Loss) Per Share - Rec
Earnings (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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Weighted average shares outstanding: | ||||
Basic weighted average shares outstanding | 115,889 | 118,254 | 115,615 | 117,096 |
Add: Dilutive effect of stock options | 1,603 | 1,489 | ||
Diluted weighted average shares outstanding | 117,492 | 119,743 | 115,615 | 117,096 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 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 | 1,200,000 | 3,300,000 | 8,000,000 | 10,100,000 | |
Common stock outstanding | 115,981,696 | 115,981,696 | 117,096,731 |
Other, net - Additional Informa
Other, net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency transaction losses | $ (1.3) | $ (1.1) | $ (3) | $ (2.2) |
Selected Segment Financial Data
Selected Segment Financial Data, Revenues and Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 245,525 | $ 225,735 | $ 689,830 | $ 697,796 |
Stock-based compensation | (6,575) | (8,084) | (20,642) | (22,724) |
Corporate and unallocated expenses | (22,610) | (18,837) | (64,122) | (111,167) |
Interest, net | (9,810) | (9,209) | (23,406) | (29,777) |
Other, net | (1,304) | (1,059) | (3,036) | (2,176) |
Income (loss) before income taxes | 17,245 | 1,155 | (16,945) | (55,350) |
Depreciation and amortization expense | 23,545 | 25,553 | 72,889 | 76,772 |
ACI On Premise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 141,006 | 126,006 | 367,431 | 385,108 |
ACI On Demand [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 104,519 | 99,729 | 322,399 | 312,688 |
Operating Segments [Member] | ACI On Premise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 141,006 | 126,006 | 367,431 | 385,108 |
Segment Adjusted EBITDA | 77,819 | 65,138 | 171,477 | 196,060 |
Depreciation and amortization expense | 2,772 | 3,321 | 8,596 | 9,915 |
Operating Segments [Member] | ACI On Demand [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 104,519 | 99,729 | 322,399 | 312,688 |
Segment Adjusted EBITDA | 3,270 | (1,241) | (4,327) | (8,794) |
Depreciation and amortization expense | 7,906 | 8,576 | 23,468 | 25,973 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization expense | $ 12,867 | $ 13,656 | $ 40,825 | $ 40,884 |
Selected Segment Financial Da_2
Selected Segment Financial Data, Revenues and Long lived Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 245,525 | $ 225,735 | $ 689,830 | $ 697,796 | |
Long lived assets | |||||
Long lived assets | 1,542,810 | 1,542,810 | $ 1,373,069 | ||
Bill Payments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 64,134 | 62,328 | 204,673 | 201,259 | |
Digital Channels/Online [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 16,826 | 24,958 | 58,060 | 69,889 | |
Merchant Payments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 24,268 | 18,881 | 60,899 | 55,991 | |
Payments Risk Management [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 18,327 | 22,079 | 60,235 | 56,459 | |
Real Time Payments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 24,244 | 12,265 | 54,560 | 37,613 | |
Retail Payments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 97,726 | 85,224 | 251,403 | 276,585 | |
ACI On Premise [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 141,006 | 126,006 | 367,431 | 385,108 | |
ACI On Premise [Member] | Digital Channels/Online [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 7,499 | 13,403 | 27,779 | 36,118 | |
ACI On Premise [Member] | Merchant Payments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 6,216 | 6,423 | 16,476 | 20,175 | |
ACI On Premise [Member] | Payments Risk Management [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 7,259 | 10,887 | 25,711 | 22,855 | |
ACI On Premise [Member] | Real Time Payments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 23,704 | 11,745 | 53,086 | 35,195 | |
ACI On Premise [Member] | Retail Payments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 96,328 | 83,548 | 244,379 | 270,765 | |
ACI On Demand [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 104,519 | 99,729 | 322,399 | 312,688 | |
ACI On Demand [Member] | Bill Payments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 64,134 | 62,328 | 204,673 | 201,259 | |
ACI On Demand [Member] | Digital Channels/Online [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 9,327 | 11,555 | 30,281 | 33,771 | |
ACI On Demand [Member] | Merchant Payments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 18,052 | 12,458 | 44,423 | 35,816 | |
ACI On Demand [Member] | Payments Risk Management [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 11,068 | 11,192 | 34,524 | 33,604 | |
ACI On Demand [Member] | Real Time Payments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 540 | 520 | 1,474 | 2,418 | |
ACI On Demand [Member] | Retail Payments [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 1,398 | 1,676 | 7,024 | 5,820 | |
United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 114,423 | 120,858 | 357,451 | 386,436 | |
Long lived assets | |||||
Long lived assets | 834,386 | 834,386 | 759,513 | ||
United States [Member] | ACI On Premise [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 26,022 | 36,189 | 82,280 | 118,311 | |
United States [Member] | ACI On Demand [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 88,401 | 84,669 | 275,171 | 268,125 | |
Other [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 19,118 | 19,188 | 52,346 | 51,759 | |
Long lived assets | |||||
Long lived assets | 708,424 | 708,424 | $ 613,556 | ||
Other [Member] | ACI On Premise [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 16,709 | 16,874 | 45,269 | 44,591 | |
Other [Member] | ACI On Demand [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 2,409 | 2,314 | 7,077 | 7,168 | |
EMEA [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 93,123 | 60,023 | 218,732 | 201,933 | |
EMEA [Member] | ACI On Premise [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 80,738 | 47,919 | 181,913 | 166,379 | |
EMEA [Member] | ACI On Demand [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 12,385 | 12,104 | 36,819 | 35,554 | |
Asia Pacific [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 18,861 | 25,666 | 61,301 | 57,668 | |
Asia Pacific [Member] | ACI On Premise [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 17,537 | 25,024 | 57,969 | 55,827 | |
Asia Pacific [Member] | ACI On Demand [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 1,324 | $ 642 | $ 3,332 | $ 1,841 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Description of customer revenue accounted for more than 10% of consolidated revenue | No single customer accounted for more than 10% of the Company's consolidated revenues during the three and nine months ended September 30, 2018 and 2017. | |
Geographic Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Description of customer revenue accounted for more than 10% of consolidated revenue | No other country outside the United States and Canada accounted for more than 10% of the Company's consolidated revenues during the three months ended September 30, 2018. During the three months ended September 30, 2017, no other country outside the United States accounted for more than 10% of the Company's consolidated revenues. No other country outside the United States accounted for more than 10% of the Company's consolidated revenues during the nine months ended September 30, 2018 and 2017. | |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenues attributable to customers in Canada | 11.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Provisional tax expense recognized | $ 35.9 | ||||
Adjustment to estimate related to executive compensation, tax benefit | $ 2.8 | ||||
Tax expense for current impact of GILTI provisions | $ 5 | ||||
Effective tax rate, percentage | 12.00% | (193.00%) | (11.00%) | 49.00% | |
Earnings (losses) of foreign entities | $ 27.3 | $ 15.2 | $ 32.7 | $ 40.6 | |
Unrecognized tax benefit for uncertain tax positions | 27.8 | 27.8 | 27.2 | ||
Accrued interest and penalties related to income tax liabilities | 1.1 | 1.1 | $ 1.2 | ||
Decrease in unrecognized tax benefits due to expiration of statutes of limitations and settlement of various audits | 3.7 | $ 3.7 | |||
Tax Cuts and Jobs Act of 2017, foreign tax charge related to remittance of earnings | $ 0.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Activity within Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 764,597 | |||
Other comprehensive income (loss) | $ (3,862) | $ (594) | (11,110) | $ 14,526 |
Ending balance | 962,938 | 962,938 | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (77,356) | (94,100) | ||
Ending balance | $ (88,466) | $ (79,574) | $ (88,466) | $ (79,574) |